Sanger City Council
December 18, 2025

Attachment 1

RESOLUTION NO. 2025-98

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANGER

AUTHORIZING AND DESIGNATING CERTAIN CITY OFFICIALS WITH

SIGNATORY AUTHORITY

WHEREAS, the City of Sanger must maintain various bank accounts in order to operate and manage the fiscal affairs of the City of Sanger; and

WHEREAS, to protect and control the cash assets and fiscal integrity of the various bank accounts, signatory authority should be specifically granted to particular City Officials; and

WHEREAS, the City Council determines that it is necessary for the efficient administration of the fiscal affairs of the City that this resolution be passed and adopted.

WHEREAS, facsimile signatures of the designated City Officials with signatory authority are authorized.

NOW THEREFORE, the City Council of the City of Sanger resolves as follows:

Section 1. The foregoing recitals are true and correct and incorporated by reference.

Section 2. The following City officers holding the title(s) specified hereinbelow or their successors in office are each hereby authorized to order the deposit or withdrawal of monies and may execute and deliver any and all documents necessary or advisable in order to effectuate the purposes of this resolution and the transactions contemplated hereby:

Nathan Olson – City Manager
Virginia Harmon – Finance Director
Karla Camarena – Finance Manager

Section 3. This resolution is effective upon adoption. All previous resolutions and approvals authorizing the honoring of signatures of City officials other than those set forth in this resolution are hereby rescinded.

Section 4. This resolution shall remain in full force and effect until rescinded by resolution of the City Council and a copy of the resolution rescinding this resolution is filed with the State Treasurer’s Office.

*****************

I hereby certify that the foregoing is a full, true and correct copy of a resolution duly and regularly adopted and regularly adopted and passed by the City Council of the City of Sanger, California at a regular meeting thereof h eld on the 18 th day of December 2025 by the following
vote.

AYES:

NOES:

ABSTAIN:

ABSENT:

ATTEST:

_____________________________
Lina Martinez, City Clerk

Attachment 2

RESOLUTION NO. 2025-99

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANGER

AUTHORIZING INVESTMENT OF MONIES IN THE

LOCAL AGENCY INVESTMENT FUND

WHEREAS, The Local Agency Investment Fund is established in the State Treasury under Government Code section 16429.1 et. seq. for the deposit of money of a local agency for purposes of investment by the State Treasurer; and

WHEREAS, the City Council hereby finds that the deposit and withdrawal of money in the Local Agency Investment Fund in accordance with Government Code section 16429.1 et. seq. for the purpose of investment as provided therein is in the best interests of the City.

NOW THEREFORE, the City Council of the City of Sanger resolves as follows:

Section 1. The City Council authorizes the deposit and withdrawal of City monies in the Local Agency Investment Fund in the State Treasury in accordance with Government Code section 16429.1 et. seq. for the purpose of investment as provided therein.

Section 2. The following City officers holding the title(s) specified hereinbelow or their successors in office are each hereby authorized to order the deposit or withdrawal of monies in the Local Agency Investment Fund and may execute and deliver any and all documents necessary or advisable in order to effectuate the purposes of this resolution and the transactions contemplated hereby:

Nathan Olson – City Manager
Virginia Harmon – Finance Director
Karla Camarena – Finance Manager

Section 3. This resolution is effective upon adoption and shall remain in full force and effect until rescinded by City Council by resolution and a copy of the resolution rescinding this resolution is filed with the State Treasurer’s Office.

*****************

I hereby certify that the foregoing is a full, true and correct copy of a resolution duly and regularly adopted and regularly adopted and passed by the City Council of the City of Sanger, California at a regular meeting thereof held on the 18th day of December 2025 by the following vote.

AYES:

NOES:

ABSTAIN:

ABSENT:

ATTEST:

_____________________________
Lina Martinez, City Clerk

Prepared by: _Virginia Harmon _ Approved by: _Nathan Olson______________

REVIEW: City Manager: _NCO_____ Finance: ___VH____ City Attorney: ___ TYPE OF ITEM: COUNCIL ACTION:  APPROVED  DENIED  NO ACTION ____ Consent
____ Info Item
_ X Action Item
__X Department Report

____ Public Hearing
____ Matter Initiated by a Council Member
____ Other
____ Continued to: __________

For the Meeting of: December 18, 2025
Agenda Item No.: H-1

CITY OF SANGER

REPORT TO THE CITY COUNCIL

To: Mayor and Councilmembers
From: Virginia Harmon, Finance Director
Subject: Investment Report for the quarter ended September 30, 2025

Attachments: (1) Summary of Cash and Investments as of September 30, 2025 (2) Portfolio Summary and Key Statistics for the Quarter Ended September 30, 2025
(3) US Bank Custodial Account Statement for Month End September 30, 2025

CONFLICT OF INTEREST:

Staff has reviewed the decision contemplated by this action and has determined that it is not site-specific and consequently, the real property holdings of the City Council members do not create a disqualifying real property-related financial conflict of i nterest under the Political Reform Act (Cal. Gov’t Code § 87100, et seq.).

Staff is not independently aware and has not been informed by any City Council member, of any other fact that may constitute a basis for a decision-maker conflict of interest in this matter.

RECOMMENDATION:

That the City Council receives the report.

EXECUTIVE SUMMARY:

Transmitted herewith is the City’s investment report for the quarter ended September 30, 2025.

ENVIRONMENTAL REVIEW:

The activity is not a “Project” as defined under Section 15378 of the California Environmental Quality Act State Guidelines; therefore, pursuant to State Guidelines Section 15060(c)(3) no environmental review is required.

BOARD/COMMISSION/COMMITTEE RECOMMENDATION:

Not applicable.

DISCUSSION:

The total cash and investment portfolio book value (cost) held by the City as of September 30, 2025 was $49,062,319.

The cash and investments held by the City include the following components: Managed Investment Portfolio ($30,716,749), State of CA Local Agency Investment Fund ($5,804), California Asset Management Program (CAMP) Pooled Investment Fund ($16,080,277), Cash/Time Deposits ($2,038,053), and accrued interest on investments ($221,436). Earned interest is the interest earned on investments over a specific time period, accrued interest is the interest that an investment has earned, but hasn’t yet been received, and paid interest is the interest that has already been received as payment.

Cash and investments held by the City and the trustees continue to be invested in accordance with the Government Code and the Council Investment Policy.

During the quarter, two Federal Agency Bonds in the amount of $3,034,950, one U.S. Treasury Note in the amount of $1,384,425 and one Medium-term note/Corporate note in the amount of $1,337,835 were purchased. One Certificate of Deposit in the amount of $250,000 and one Federal Agency Bond in the amount of $1,500,000 matured.

Two-year Treasuries yielding 3.72% at the beginning of the quarter ended lower at the end of the quarter at 3.60%, which was a decrease of 12 basis points for the quarter.

As of September 30, 2025, the Weighted Yield to Maturity on the Managed Investment Portfolio was

3.62%.

At the end of this quarter, the Weighted Average Maturity of the Managed Investment Portfolio was

2.41 years.

The Federal Open Market Committee (FOMC) meets approximately every six weeks and determines the level of the Federal Funds Rate. At the September 17th meeting, the FOMC voted to lower the target range for the federal funds rate by 1/4 percentage point to 4 to 4-1/4 percent.

Summary from the September 17th meeting:

"Recent indicators suggest that growth of economic activity moderated in the first half of the year. Job gains have slowed, and the unemployment rate has edged up but remains low. Inflation has moved up and remains somewhat elevated.

The Committee seeks to achieve maximum employment and inflation at the rate of 2 percent over the

longer run. Uncertainty about the economic outlook remains elevated. The Committee is attentive to the risks to both sides of its dual mandate and judges that downside risks to employment have risen.

In support of its goals and in light of the shift in the balance of risks, the Committee decided to lower the target range for the federal funds rate by 1/4 percentage point to 4 to 4-1/4 percent. In considering additional adjustments to the target range for the federal funds rate, the Committee will carefully assess incoming data, the evolving outlook, and the balance of risks. The Committee will continue reducing its holdings of Treasury securities and agency debt and agency mortgage-backed securities. The Committee is strongly committed to supporting maximum employment and returning inflation to its 2 percent objective.

In assessing the appropriate stance of monetary policy, the Committee will continue to monitor the implications of incoming information for the economic outlook. The Committee would be prepared to adjust the stance of monetary policy as appropriate if risks emerge that could impede the attainment of the Committee's goals. The Committee's assessments will take into account a wide range of information, including readings on labor market conditions, inflation pressures and inflation expectations, and financial and international developments."

Finance staff hired Optimized Investment Partners in July 2024 to help improve the investment returns for the city and to ensure compliance with California Government Code by ensuring safety of principal and sufficient liquidity for operations. Ongoing por tfolio management activity will continue to be performed in partnership with Optimized Investment Partners, the Finance Director, the Finance Manager and the City Manager.

REASON FOR RECOMMENDATION:

Per the adopted investment policy, the Finance Director is required to report the type of investment, financial institution, date of maturity, amount of investment, current market value, rate of interest for all securities with a maturity of more than 12 months and a statement that all city investments are in compliance with the city investment policy and all applicable provisions of the California Government Code.

FISCAL IMPACT:

Current-year Fiscal Impact
Considering the projected timing of cash receipts and disbursements and the structure of the Pooled Investment Portfolio, the City should be able to comfortably meet overall cash flow needs over the next six months. There is no direct fiscal impact by this action.

Ongoing Fiscal Impact
There is no ongoing fiscal impact by this action.

COUNCIL OPTIONS:

None noted

ACTIONS FOLLOWING APPROVAL:

None noted

Attachment 1

Par Value (1) Market Value (2) Book Value (3)
Cash & Investments Held by City
Investment Portfolio
Managed Investments
U.S. Bank Custodial Cash Account 377,922$ 377,922$ 377,922$ 0.77% U.S. Treasury Bill/ Note 17,750,000 17,408,958 17,271,974 35.36% Federal Agency Bond 8,500,000 8,580,878 8,613,018 17.63% Medium-Term Notes/Corporate Notes 1,500,000 1,329,135 1,337,835 2.74% Certificate of Deposit 3,116,000 3,119,745 3,116,000 6.38% Managed Investments Subtotal 31,243,922$ 30,816,637$ 30,716,749$ 62.89% Pooled Investments
State of CA Local Agency Investment Fund 5,804$ 5,804$ 5,804$ 0.01% CAMP 16,080,277$ 16,080,277$ 16,080,277$ 32.92% Pooled Investments Subtotal 16,086,081$ 16,086,081$ 16,086,081$ 32.94% Investment Portfolio Subtotal 47,330,003$ 46,902,718$ 46,802,830$ 95.83% Cash/Time Deposits 2,038,053$ 2,038,053$ 2,038,053$ 4.17% Funds Available for Investment 49,368,056$ 48,940,771$ 48,840,883$ 100.00% Accrued Interest 221,436$ 221,436$ 221,436$ Total Cash & Investments Held by City 49,589,492$ 49,162,207$ 49,062,319$ Notes:

1. Par value is the principal amount of the investment on maturity.

2. Market values contained herein are received from sources we believe are reliable; however, we do not guarantee their accuracy.

3. Book value is par value of the security plus or minus any premium or discount on the security.

City of Sanger
Summary of Cash and Investments for the Quarter Ended September 30, 2025 % of PortfolioPortfolio Assets

Attachment 2

*Note: Cash/time deposits not included in WYTM
Excludes Pooled Investments and U.S. Bank Custodial Cash Account Under 1 Year
Maturity Sep 2025 Jun 2025 Change 1 - 2 Years
3-Month 4.02% 4.41% -0.39% 2 - 3 Years
1-Year 3.68% 3.96% -0.28% 3 - 4 Years
2-Year 3.60% 3.72% -0.12% 4 - 5 Years
3-Year 3.61% 3.68% -0.07% Total
5-Year 3.74% 3.79% -0.05%
10-Year 4.16% 4.24% -0.08%
Jul
Aug
Sep 2025 Sep 2024 Sep 2023 Sep 2022 Sep

3.60% 3.66% 5.03% 4.22% Total for Quarter
Note: Interest Earnings figures do not include capital gains or losses 321,826$ 481,503 $ 159,677 $ 170,795$ 80,066 $
149,008$ 8,432 $ 140,575$ 2-Year U.S. Treasury Yield - Historical Data 161,701$ 71,179 $ 6,000,000$ 19%
30,866,000$ 100%
ChangeFY 25-26FY 24-25Interest Earnings
90,729$
90,522$
5,993,000$ 19%
5,484,000$ 18%
6,490,000$ 21%
U.S. Treasury Yields - Quarterly Comparison 6,899,000$ 22% Book Value (COST) 46,802,830 $
Market Value 46,902,718 $
Weighted Average Maturity (in years) 2.41
Weighted Yield to Maturity* 3.62%
Portfolio Maturity PAR Maturing % Maturing
City of Sanger
Investment Report for the Quarter Ended September 30, 2025 Investment Portfolio Summary and Key Statistics
Portfolio Key Statistics
PAR Value 47,330,003 $

35.36%

32.92%

17.63%

6.38%

4.17%

2.74%

0.77%

0.01%
U.S. TREASURY BILL/NOTE 35.36%
CAMP 32.92%
FEDERAL AGENCY BOND 17.63%
CERTIFICATE OF DEPOSIT 6.38%
CASH/TIME DEPOSITS 4.17%
MEDIUM-TERM NOTES/CORPORATE NOTES 2.74%
INVESTMENT CASH ACCOUNT 0.77%
LOCAL AGENCY INVESTMENT FUND 0.01%
0%
5%
10%
15%
20%
25%
Under 1
Year
1 - 2 Years 2 - 3 Years 3 - 4 Years 4 - 5 Years
22% 19%
18%
21% 19%
Portfolio Maturity Distribution

Attachment 3

This statement is for the period from September 1, 2025 to September 30, 2025 Phone 513-632-4147
E-mail [email protected]
Portfolio Manager:
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FATTFDTDDAATTTADTDATDFDAAAAFDFDTATFDDTFFDTDTAAAFATDFDTDAAADTFTAFT 000004345 03 SP 000638046804918 S

CITY OF SANGER
1700 7TH STREET
SANGER, CA 93657
If you have any questions regarding your account or this statement, please contact your Administrator.

MARQUES MCNIESE
CN-OH-W5IT
425 WALNUT ST. 5TH FLOOR
CINCINNATI OH 45202
TS CIN RC #4 - MANUAL
CN-OH-W6TC
ACCOUNT NUMBER:

CITY OF SANGER
QUESTIONS?

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TABLE OF CONTENTS
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SchedulePage
........................................................................................ .................................................................................................... .................................................................................................. ........................................................................................................... ................................................................................................. ......................................................................................... .....................................................................................................

Market Value Summary
Asset Summary
Income Summary
Asset Detail
Transaction Detail
Sale/Maturity Summary
Bond Summary
1 2
3 4
10 14
15

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CITY OF SANGER
ACCOUNT NUMBER:September 1, 2025 to September 30, 2025

MARKET VALUE SUMMARY
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Current Period
09/01/25 to 09/30/25
Year-to-Date
01/01/25 to 09/30/25
Beginning Market Value$30,685,571.02$28,912,874.90
Ending Market Value$30,816,636.91$30,816,636.91
Current Period 09/01/25 to 09/30/25
Taxable Interest124,352.31568,372.06
Taxable Dividends45,246.24
Fees and Expenses-255.11-2,838.24
Cash Receipts800,000.00
Short Term Gains/Losses-4,603.50-11,202.00
Change in Investment Value11,572.19504,183.95

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CITY OF SANGER
ACCOUNT NUMBER:September 1, 2025 to September 30, 2025

ASSET SUMMARY
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Assets
Current Period
Market Value
% of
Total
Estimated
Annual Income
Total Market Value$30,816,636.91 100.00$919,021.52
Cash & Equivalents377,921.61 1.2014,361.02
Taxable Bonds30,438,715.30 98.80904,660.50

CITY OF SANGER
ACCOUNT NUMBER:September 1, 2025 to September 30, 2025

INCOME SUMMARY
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Income Received
Current Period
Income Received
YTD
Total Current Period Income$124,352.31$613,618.30
Taxable Interest124,352.31568,372.06
Taxable Dividends0.0045,246.24

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CITY OF SANGER
ACCOUNT NUMBER:September 1, 2025 to September 30, 2025

Cash/Money Market
Total Cash/Money Market
US Government Issues

ASSET DETAIL
Total Cash
$377,921.61$377,921.61$0.001.2$14,361.02
$0.00$0.00$0.000.0$0.00
$377,921.61$377,921.61$0.001.2$14,361.02
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L Plus Platinum Class Z - USBLPPZ **
377,921.6101.0000377,921.61377,921.610.001.214,361.023.80 Principal Cash-730,664.23-730,664.23-2.4
Income Cash730,664.23730,664.232.4
U S Treasury Note - 91282CAT8

0.250 10/31/2025
1,500,000.00099.68401,495,260.00 1,443,441.0051,819.004.93,750.000.25 U S Treasury Note - 9128285N6

2.875 11/30/2025
1,500,000.00099.79801,496,970.00 1,483,911.0013,059.004.943,125.002.88 Federal Home Loan Bks - 3130AL4V3

0.300 02/17/2026 Mutli Cpn
250,000.00098.7530246,882.50249,125.00-2,242.500.81,625.000.66 Cash
Security Description
Shares/Face AmtPrice Market ValueTax Cost
Unrealized
Gain/Loss
Percent
of Total
Portfolio
Estimated
Annual Income
Estimated
Current Yield
Cash & Equivalents
Total Cash & Equivalents
Taxable Bonds

CITY OF SANGER
ACCOUNT NUMBER:September 1, 2025 to September 30, 2025

ASSET DETAIL (continued)
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Federal Home Loan Bks - 3130AWGR5

4.375 06/12/2026
1,000,000.000100.38801,003,880.00 1,011,396.00-7,516.003.343,750.004.36 U S Treasury Note - 9128287B0

1.875 06/30/2026
500,000.00098.6000493,000.00484,026.008,974.001.69,375.001.90 Federal Home Loan Bks - 3130A2VE3

3.000 09/11/2026
1,250,000.00099.32201,241,525.00 1,233,878.757,646.254.037,500.003.02 U S Treasury Note - 912828YQ7

1.625 10/31/2026
1,500,000.00097.81301,467,195.00 1,438,624.5028,570.504.824,375.001.66 U S Treasury Note - 912828U24

2.000 11/15/2026
1,500,000.00098.11701,471,755.00 1,449,853.5021,901.504.830,000.002.04 U S Treasury Note - 91282CEW7

3.250 06/30/2027
1,500,000.00099.35201,490,280.00 1,489,582.50697.504.848,750.003.27 U S Treasury Note - 91282CFM8

4.125 09/30/2027
750,000.000100.9650757,237.50763,935.75-6,698.252.530,937.504.09 U S Treasury Note - 91282CFU0

4.125 10/31/2027
1,500,000.000101.01601,515,240.00 1,527,222.00-11,982.004.961,875.004.08 U S Treasury Note - 9128283F5

2.250 11/15/2027
1,500,000.00097.21901,458,285.00 1,443,390.0014,895.004.733,750.002.31 Federal Home Loan Bks - 3130AWN63

4.000 06/30/2028
1,500,000.000101.06601,515,990.00 1,527,055.50-11,065.504.960,000.003.96 Security Description
Shares/Face AmtPrice Market ValueTax Cost
Unrealized
Gain/Loss
Percent
of Total
Portfolio
Estimated
Annual Income
Estimated
Current Yield

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CITY OF SANGER
ACCOUNT NUMBER:September 1, 2025 to September 30, 2025

Total US Government Issues
Corporate Issues
ASSET DETAIL (continued)
$25,989,835.00 $25,884,992.00$104,843.00 84.3$764,062.50 9718
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U S Treasury Note - 91282CJA0

4.625 09/30/2028
500,000.000102.8130514,065.00521,518.50-7,453.501.723,125.004.50 U S Treasury Note - 91282CDF5

1.375 10/31/2028
1,500,000.00093.44501,401,675.00 1,378,957.5022,717.504.520,625.001.47 U S Treasury Note - 9128285M8

3.125 11/15/2028
1,500,000.00098.47701,477,155.00 1,479,205.50-2,050.504.846,875.003.17 Federal Farm Credit Bks - 3133ERKC4

4.350 06/28/2029
1,500,000.000101.97801,529,670.00 1,556,613.00-26,943.005.065,250.004.27 U S Treasury Note - 91282CFJ5

3.125 08/31/2029
1,000,000.00097.9530979,530.00983,881.00-4,351.003.231,250.003.19 Federal Farm Credit Bks - 3133ETMD6

4.000 10/23/2029
1,500,000.000101.33001,519,950.00 1,513,440.006,510.004.960,000.003.95 U S Treasury Note - 912828YS3

1.750 11/15/2029
1,500,000.00092.75401,391,310.00 1,384,425.006,885.004.526,250.001.89 Federal Home Loan Bks - 3130AWGS3

4.125 06/14/2030
1,500,000.000101.53201,522,980.00 1,521,510.001,470.004.961,875.004.06 Manufacturers Traders Tr Co CD - 564759RR1
C D

4.250 01/20/2026
150,000.000100.0100150,015.00150,000.0015.000.56,375.004.25 Security Description
Shares/Face AmtPrice Market ValueTax Cost
Unrealized
Gain/Loss
Percent
of Total
Portfolio
Estimated
Annual Income
Estimated
Current Yield

CITY OF SANGER
ACCOUNT NUMBER:September 1, 2025 to September 30, 2025

ASSET DETAIL (continued)
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City Natl Bk Los Angeles Calif - 178180GW9
C D

4.350 01/26/2026
250,000.000100.0970250,242.50250,000.00242.500.810,875.004.35 Ubs Bk USA Salt Lake City Ut - 90355GAS5
C D

4.250 01/26/2026
250,000.000100.0820250,205.00250,000.00205.000.810,625.004.25 Preferred Bk Los Angeles Calif - 740367UM7
C D

3.900 09/21/2026
249,000.000100.1210249,301.29249,000.00301.290.89,711.003.89 Medallion Bk Salt Lake City Ut - 58404DVZ1
C D

3.750 09/10/2027
249,000.000100.1740249,433.26249,000.00433.260.89,337.503.74 Valley Natl Bk Passaic N J - 919853NX5
C D

3.850 09/10/2027
245,000.000100.3470245,850.15245,000.00850.150.89,432.503.84 1st Finl Bk USA Dakota Dunes - 32022RYG6
C D

3.700 09/16/2027
249,000.000100.0850249,211.65249,000.00211.650.89,213.003.70 Bny Mellon - 05584CRG3
C D

3.650 09/11/2028
245,000.00099.9880244,970.60245,000.00-29.400.88,942.503.65 First Merchants Bk Muncie - 32082BFY0
C D

3.650 09/11/2028
245,000.000100.0250245,061.25245,000.0061.250.88,942.503.65 Security Description
Shares/Face AmtPrice Market ValueTax Cost
Unrealized
Gain/Loss
Percent
of Total
Portfolio
Estimated
Annual Income
Estimated
Current Yield

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11 1 1 111 1 1
1 1 1 11 111
1 1 1 11 1
11 1 1 1 1111 1
11 1111 1 1 1 1 1
11 1 1 1 11 1
11 11 1 111 1 11
1 11 11 111 1
1 1 11 1 11 11111
1 11111 111 1
1 1 1 1111 1 1
1 111 11 1 1 1
11 1111 11 1 1 1 1
1 111 1 1 1 1
11111111111111111111

CITY OF SANGER
ACCOUNT NUMBER:September 1, 2025 to September 30, 2025

Total Corporate Issues
ASSET DETAIL (continued)
$4,448,880.30 $4,453,835.00-$4,954.70 14.4$140,598.00
$30,438,715.30 $30,338,827.00$99,888.30 98.8$904,660.50 $30,816,636.91 $30,716,748.61$99,888.30 100.0$919,021.52

2.98 9718
00- -M -UC-UU -274-04
0593873-00-02387-04
Morgan Stanley Bk N A Salt Lake City - 61690DWX2
C D

3.850 09/11/2028
245,000.000100.5420246,327.90245,000.001,327.900.89,432.503.83 American Comm Bk Natl Assn - 02519TBG0
C D

3.600 09/13/2028
249,000.00099.8600248,651.40249,000.00-348.600.88,964.003.60 American Exp Natl Bank - 02589AFC1
C D

3.750 09/11/2029
245,000.000100.0060245,014.70245,000.0014.700.89,187.503.75 Morgan Stanley Private Bk Natl Assn - 61776NCW1
C D

3.800 09/11/2029
245,000.000100.1880245,460.60245,000.00460.600.89,310.003.79 Microsoft Corp - 594918CS1

1.350 09/15/2030
1,500,000.00088.60901,329,135.00 1,337,835.00-8,700.004.320,250.001.52 Security Description
Shares/Face AmtPrice Market ValueTax Cost
Unrealized
Gain/Loss
Percent
of Total
Portfolio
Estimated
Annual Income
Estimated
Current Yield
Total Taxable Bonds
Total Assets
Estimated Current Yield

CITY OF SANGER
ACCOUNT NUMBER:September 1, 2025 to September 30, 2025

None Security State Bank of Oklaho $127,934.93
Hinsdale Bank and Trust Compa $87.35
Barrington Bank and Trust Com $146.64
State Bank of the Lakes, N.A. $104.65
Beverly Bank and Trust Compan $82.67
Pacific National Bank$22.40
Southern Bank$250,026.03
$378,404.67
Excluded Bank Name Bank NameBalance

ASSET DETAIL MESSAGES
**Your U.S. Bank Liquidity Plus Program as of 09/30/2025 was allocated as follows:

Total Balance
9718
00- -M -UC-UU -274-04
0593873-00-02387-04
Time of trade execution and trading party (if not disclosed) will be provided upon request.

Publicly traded assets are valued in accordance with market quotations or valuation methodologies from financial industry services believed by us to be reliable. Assets that are not publicly traded may be reflected at values from other external sources. Assets for which a current value is not available may be reflected at a previous value or as not valued, at par value, or at a nominal value. Values shown do not necessarily reflect prices at which assets could be bought or sold. Values are updated based on internal policy and may be updated less frequently than statement generation.

1 1 1 1 1 1 1 1 1 11 11 11 11 11
1 1 1 1 111 1
1 11 1 11 11111
111 1 1 1 111
11 1 1 111 1
1 1 111 1
1 1 1111 1 1111 1
11 1 1 1111 11 1
11 1111 11 111 1
11 1 11111 1
11 11 11 111 11
1 11 1111 1
1 1 11 11 1 1111
1 111111 1 11 1
1 1111 11 1 1 11
1 11 1111 11 1111 1
11 1 1 1 11 111 1
1 111 1 1 1 1 1
11111111111111111111

CITY OF SANGER
ACCOUNT NUMBER:September 1, 2025 to September 30, 2025

TRANSACTION DETAIL
$606,311.92-$606,311.92 $30,597,254.91
9718
00- -M -UC-UU -274-04
0593873-00-02387-04
09/02/25 Asset IncomeInterest Earned On
U S Treasury Nt 3.125% 8/31/29
15,625.00

0.015625 USD/$1 Pv On 1,000,000 Par Value Due 8/31/25
09/02/25 PurchasePurchased 15,625 Shares Of
L Plus Platinum Class Z
-15,625.0015,625.00
Trade Date 9/2/25
Purchased Through Direct From Issuer
15,625 Shares At 1.00 USD
09/10/25 Asset IncomeInterest Earned On
First Merchants C D 3.650% 9/11/28
4,508.00

0.0184 USD/$1 Pv On 245,000 Par Value Due 9/10/25
09/10/25 Asset IncomeInterest Earned On
Medallion Bk C D 3.750% 9/10/27
793.05

0.003185 USD/$1 Pv On 249,000 Par Value Due 9/10/25
09/10/25 Asset IncomeInterest Earned On
Valley Natl Bk C D 3.850% 9/10/27
4,755.01

0.019408 USD/$1 Pv On 245,000 Par Value Due 9/10/25
09/10/25 PurchasePurchased 10,056.06 Shares Of
L Plus Platinum Class Z
-10,056.0610,056.06
Trade Date 9/10/25
Purchased Through Direct From Issuer
10,056.06 Shares At 1.00 USD
09/11/25 Asset IncomeInterest Earned On
American Exp C D 3.750% 9/11/29
4,631.51

0.018904 USD/$1 Pv On 245,000 Par Value Due 9/11/25
09/11/25 Asset IncomeInterest Earned On
Bny Mellon C D 3.650% 9/11/28
4,508.00

0.0184 USD/$1 Pv On 245,000 Par Value Due 9/11/25
09/11/25 Asset IncomeInterest Earned On
F H L B Deb 3.000% 9/11/26
18,750.00

0.015 USD/$1 Pv On 1,250,000 Par Value Due 9/11/25
09/11/25 Asset IncomeInterest Earned On
Morgan Stanley C D 3.800% 9/11/29
4,693.26

0.019156 USD/$1 Pv On 245,000 Par Value Due 9/11/25
Date
Posted ActivityDescription
Income
Cash
Principal
CashTax Cost
Beginning Balance 09/01/2025

CITY OF SANGER
ACCOUNT NUMBER:September 1, 2025 to September 30, 2025

TRANSACTION DETAIL (continued)
9718
00- -M -UC-UU -274-04
0593873-00-02387-04
09/11/25 Asset IncomeInterest Earned On
Morgan Stanley C D 3.850% 9/11/28
4,755.01

0.019408 USD/$1 Pv On 245,000 Par Value Due 9/11/25
09/11/25 PurchasePurchased 37,337.78 Shares Of
L Plus Platinum Class Z
-37,337.7837,337.78
Trade Date 9/11/25
Purchased Through Direct From Issuer
37,337.78 Shares At 1.00 USD
09/15/25 Asset IncomeInterest Earned On
American Comm C D 3.600% 9/13/28
761.33

0.003058 USD/$1 Pv On 249,000 Par Value Due 9/13/25
09/15/25 PurchasePurchased 761.33 Shares Of
L Plus Platinum Class Z
-761.33761.33
Trade Date 9/15/25
Purchased Through Direct From Issuer
761.33 Shares At 1.00 USD
09/16/25 Asset IncomeInterest Earned On
1st Finl Bk USA C D 3.700% 9/16/27
782.47

0.003142 USD/$1 Pv On 249,000 Par Value Due 9/16/25
09/16/25 PurchasePurchased 782.47 Shares Of
L Plus Platinum Class Z
-782.47782.47
Trade Date 9/16/25
Purchased Through Direct From Issuer
782.47 Shares At 1.00 USD
09/19/25 Asset IncomeInterest Earned On
Preferred Bk C D 3.900% 9/21/26
824.77

0.003312 USD/$1 Pv On 249,000 Par Value Due 9/19/25
09/19/25 PurchasePurchased 824.77 Shares Of
L Plus Platinum Class Z
-824.77824.77
Trade Date 9/19/25
Purchased Through Direct From Issuer
824.77 Shares At 1.00 USD
09/25/25 FeeTrust Fees Collected
Charged For Period 08/01/2025 Thru 08/31/2025
-255.11
Date
Posted ActivityDescription
Income
Cash
Principal
CashTax Cost

1 1 1 1 1 1 1 1 1 11 11 11 11 11
1 1 1 1 111 1
1 11 1 1 111
111 1 1 1 1 1
11 1 1 111 1 11 1
1 1 1 11
1 1 11 1 11 11
11 1 1 1 1 11
11 1111 11 11 1 1
11 1 1 111 11
11 11 1 11 111 11
1 11 111 1
1 1 1 1111111
1 1 111 1111111
1 11111 111 1 1
1 1 111 1 11
11 1 1 1 1 1 1 1
1 111 1 1 1 1 1 1 1
11111111111111111111

CITY OF SANGER
ACCOUNT NUMBER:September 1, 2025 to September 30, 2025

TRANSACTION DETAIL (continued)
9718
00- -M -UC-UU -274-04
0593873-00-02387-04
09/25/25 Asset IncomeInterest Earned On
Ubs Bk USA C D 4.250% 1/26/26
902.40

0.00361 USD/$1 Pv On 250,000 Par Value Due 9/25/25
09/25/25 PurchasePurchased 647.29 Shares Of
L Plus Platinum Class Z
-647.29647.29
Trade Date 9/25/25
Purchased Through Direct From Issuer
647.29 Shares At 1.00 USD
09/30/25 PurchasePurchased 1,500,000 Par Value Of
Microsoft Corp 1.350% 9/15/30
-1,337,835.001,337,835.00
Trade Date 9/29/25
Purchased Through Concourse Financial Group
1,500,000 Par Value At 89.189 %
09/30/25 Purchase Accrued Interest Paid Accrued Interest On Purchase Of Microsoft Corp 1.350% 9/15/30
-843.75
Income Debit 843.75- USD
09/30/25 SaleMatured 1,500,000 Par Value Of
F F C B Deb 4.250% 9/30/25
1,500,000.00-1,504,603.50
Trade Date 9/30/25
1,500,000 Par Value At 100 %
09/30/25 Asset IncomeInterest Earned On
F F C B Deb 4.250% 9/30/25
31,875.00

0.02125 USD/$1 Pv On 1,500,000 Par Value Due 9/30/25
09/30/25 Asset IncomeInterest Earned On
U S Treasury Nt 4.125% 9/30/27
15,468.75

0.020625 USD/$1 Pv On 750,000 Par Value Due 9/30/25
09/30/25 Asset IncomeInterest Earned On
U S Treasury Nt 4.625% 9/30/28
11,562.50

0.023125 USD/$1 Pv On 500,000 Par Value Due 9/30/25
09/30/25 PurchasePurchased 220,227.5 Shares Of
L Plus Platinum Class Z
-220,227.50220,227.50
Trade Date 9/30/25
Purchased Through Direct From Issuer
220,227.5 Shares At 1.00 USD
PurchaseCombined Purchases For The Period 9/ 1/25 - 9/30/25 Of First Am Govt Ob Fd Cl Z
-286,262.20286,262.20
Date
Posted ActivityDescription
Income
Cash
Principal
CashTax Cost

CITY OF SANGER
ACCOUNT NUMBER:September 1, 2025 to September 30, 2025

TRANSACTION DETAIL (continued)
$730,664.23-$730,664.23 $30,716,748.61
9718
00- -M -UC-UU -274-04
0593873-00-02387-04
SaleCombined Sales For The Period 9/ 1/25 - 9/30/25 Of First Am Govt Ob Fd Cl Z
286,262.20-286,262.20
Date
Posted ActivityDescription
Income
Cash
Principal
CashTax Cost
Ending Balance 09/30/2025

1 1 1 1 1 1 1 1 1 11 11 11 11 11
1 1 1 1 111 1
1 11 1 1 1111
111 1 1 1 1 1
11 1 1 111 1 11 1
1 1 11 1
1 1 1 11 1 1 1
11 1 1 1 1
11 1111 1 1 11 11 1
11 1 111111111
11 11 11 1 111 11
1 1 1 1
1 1 1 1111 1111
1 1111 11 11 1 1
1 1111 1 11 1111
1 1 1 111111 11
11 1 11 1 11 1
1 111 1 1 1 1 1
11111111111111111111

CITY OF SANGER
ACCOUNT NUMBER:September 1, 2025 to September 30, 2025

SALE/MATURITY SUMMARY

SALE/MATURITY SUMMARY MESSAGES
9718
00- -M -UC-UU -274-04
0593873-00-02387-04
Estimated Year-To-Date Short-Term Gain (Loss): ($11,202.00) Estimates should not be used for tax purposes
Settlement
DateDescriptionTax CostProceeds
Estimated
Gain/Loss
Taxable Bonds
Federal Farm Credit Bks

4.250 09/30/2025
3133ENP95
Total Taxable Bonds-$1,504,603.50$1,500,000.00-$4,603.50 Total Sales & Maturities-$1,504,603.50$1,500,000.00-$4,603.50 09/30/25 Matured 1,500,000-1,504,603.501,500,000.00-4,603.50 Par Value
Trade Date 9/30/25
1,500,000 Par Value At 100 %

CITY OF SANGER
ACCOUNT NUMBER:September 1, 2025 to September 30, 2025

BOND SUMMARY
9718
00- -M -UC-UU -274-04
0593873-00-02387-04
Par ValueMarket Value
Percentage of
Category

MATURITY
Total of Category$30,866,000.00$30,438,715.30100.00

MOODY'S RATING
20253,000,000.002,992,230.009.84
20266,899,000.006,824,001.2922.42
20275,993,000.005,965,537.5619.60
20285,984,000.005,893,896.1519.36
20295,990,000.005,910,935.3019.41
20303,000,000.002,852,115.009.37
Aaa1,500,000.001,329,135.004.37
Aa126,250,000.0025,989,835.0085.38
N/A1,389,000.001,391,552.294.57

1 1 1 1 1 1 1 1 1 11 11 11 11 11
1 1 1 1 111 1
1 11 1 1 111
111 1 1 1 1 11
11 1 1 111 11 1
1 1 1 11 1
1 1 1 1 1 111 111
11 1 1 11 11 111
11 1111 11111 1 1
11 1 1 1111 11
11 11 1 111 111 11
1 1 11 1
1 1 111 11 1 111111
1 1 11 1 1
1 1 11111 1 1 1
1 11 1 1 11 11
11 111 11 11 1 1
1 111 11 1 1 11 1
11111111111111111111

CITY OF SANGER
ACCOUNT NUMBER:September 1, 2025 to September 30, 2025

Data contained within this section excluded Mutual Funds, Exchange Traded Funds, and Closed-Ended Funds.

BOND SUMMARY (continued)

BOND SUMMARY MESSAGES
9718
00- -M -UC-UU -274-04
0593873-00-02387-04
Par ValueMarket Value
Percentage of
Category
Total of Category$30,866,000.00$30,438,715.30100.00

S&P RATING
Total of Category$30,866,000.00$30,438,715.30100.00
NOT RATED1,727,000.001,728,193.015.68
AAA1,500,000.001,329,135.004.37
AA+8,500,000.008,580,877.5028.19
N/A17,900,000.0017,558,972.5057.69
NOT RATED2,966,000.002,969,730.309.75

Glossary
The accumulation of the value of a discounted bond until maturity.

The difference between the proceeds and the Prior
Market Value of the transaction.

The difference between the Market Value and the
Adjusted Prior Market Value.

A figure calculated using the beginning Market Value for the fiscal year, adjusted for all asset related transactions during the period, employing an average cost methodology.

The decrease in value of a premium bond until maturity. - Anything owned that has commercial exchange value. Assets may consist of specific property or of claims against others, in contrast to obligations due to others (liabilities).

A measurement of a bond's quality based upon the issuer's financial condition. Ratings are assigned by independent rating services, such as Moody's, or S&P, and reflect their opinion of the issuer's ability to meet the scheduled interest and principal repayments for the bond.

Cash activity that includes both income and principal cash categories. - Also reported as Gain/Loss in Period in the Asset Detail section.

This figure shows the market appreciation (depreciation) for the current period. - The original price of an asset, normally the purchase price or appraised value at the time of acquisition. Book Value method maintains an average cost for each asset. - The original price of an asset, normally the purchase price or appraised value at the time of acquisition. Tax Basis uses client determined methods such as Last-In-First-Out (LIFO), First-In-First-Out (FIFO), Average, Minimum Gain, and Maximum Gain. (Also reported as Accrued Income) Income earned but not yet received, or expenses incurred but not yet paid, as of the end of the reporting period.

The amount of income a particular asset is anticipated to earn over the next year. The shares multiplied by annual income rate. - The annual rate of return on an investment expressed as a percentage. For stocks, yield is calculated by taking the annual dividend payments divided by the stock's current share price. For bonds, yield is calculated by the coupon rate divided by the bond's market price. - (Also reported as Ex-Date) For stock trades, the person who owns the security on the ex-dividend date will earn the dividend, regardless of who currently owns the stock.

A category of cash comprised of ordinary earnings derived from investments, usually dividends and interest.

The price per unit multiplied by the number of units.
- The date on which an obligation or note matures.
- The date on which a dividend, mutual fund distribution, or interest on a bond will be made.

A category of cash comprised of cash, deposits, cash withdrawals and the cash flows generated from purchases or sales of investments.
- The Proceeds less the Cost Basis of a transaction.
- The date on which a trade settles and cash or securities are credited or debited to the account.

The date a trade is legally entered into.
- The difference between the Market Value and Cost Basis at the end of the current period.
- The annual rate of return on an investment expressed as a percentage. For stocks, yield is calculated by the annual dividend payments divided by the stock's current share price.

For bonds, yield is calculated by the coupon rate divided by the bond's market price.

The terms defined in this glossary are only for use when reviewing your account statement. Please contact your Relationship Manager with any questions.

Accretion -
Adjusted Prior Market Realized Gain/Loss -
Adjusted Prior Market Unrealized Gain/Loss -
Adjusted Prior Market Value -
Amortization -
Asset
Bond Rating -
Cash -
Change in Unrealized Gain/Loss
Cost Basis (Book Value)
Cost Basis (Tax Basis)
Ending Accrual -
Estimated Annual Income -
Estimated Current Yield
Ex-Dividend Date
Income Cash -
Market Value -
Maturity Date
Payable Date
Principal Cash -
Realized Gain/Loss Calculation
Settlement Date
Trade Date -
Unrealized Gain/Loss
Yield on/at Market

1 1 1 1 1 1 1 1 1 11 11 11 11 11
1 1 1 1 1 1 1
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11 1111 1 1 11 1 1
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11 11 1 11 11 11
1 1 11 1111
1 1 11111111 1111
1 11 11 1 111 1
1 11 1 1 1 1 1
1 11 1 111 1 1 111
11 1 1 11111 1 1
1 111 1 1 1 1 1 1
11111111111111111111
009718
-UC-274
000004345 03 SP 000638046804918 S

CITY OF SANGER
1700 7TH STREET
SANGER, CA 93657

FATTFDTDDAATTTADTDATDFDAAAAFDFDTATFDDTFFDTDTAAAFATDFDTDAAADTFTAFT U.S. Bank
1555 N. Rivercenter Dr.

Suite 300
Milwaukee, WI 53212

Prepared by: Joshua Rogers___ Approved by: ________________________ 01236.0105/831146.1
REVIEW: City Manager: ______ Finance: _______ City Attorney: ______ TYPE OF ITEM: COUNCIL ACTION:  APPROVED  DENIED  NO ACTION ____ Consent
____ Info Item
_X__ Action Item
_X__ Department Report
____ Redevelopment Agency

____ Public Hearing
____ Matter Initiated by a Council Member
____ Other
____ Continued to: __________

For the Meeting of: December 18, 2025
Agenda Item No.: H-2

CITY OF SANGER

REPORT TO THE CITY COUNCIL

To: Mayor and City Council
From: Joshua Rogers, City Engineer
Subject: Tract 6493 – North and Indianola Avenues
Approval of Storm Drain Basin Land Purchase Agreements
Attachments:

1. 2035 General Plan Land Use Map

2. Basin Location Maps with Aerial and Street Views

3. Resolution No. 2025-100 and Exhibits Listed Hereunder A. Purchase and Sale Agreement and Joint Escrow Instructions B. Storm Basin Reimbursement and Fee Credit Agreement

CONFLICT OF INTEREST:

None known.

RECOMMENDATION:

Staff recommends that the City Council adopt Resolution No. 2025-100, approving:

1. Agreement for Purchase and Sale of Real Property and Escrow Instructions; and

2. Storm Basin Reimbursement and Fee Credit Agreement.

EXECUTIVE SUMMARY:

Lennar Homes of California, LLC (“Lennar”) is the developer of Tract 6493, a 40- acre subdivision at the northeast corner of North Avenue and the Indianola Avenue alignment (“Subdivision”). As a condition of approval of the Subdivision, Lennar is required to acquire and build the master -planned storm drain basin for Sanger’s Southwest Drainage Area. Lennar has negotiated the purchase and sale of approximately

11.44 acres of land in order to satisfy that condition of approval. Because the property will be dedicated directly to the City and because the acquisition of land for master -planned regional basin facilities is eligible for development impact fee credit and/or reimbursement, Staff recommends that the City Council

01236.0105/831146.1
approve the purchase and sale agreement as well as an agreement to provide fee credits and/or reimbursement to Lennar.

BACKGROUND:

On July 24, 2025 the Planning Commission conditionally approved Tentative Tract Map 6493, a 530- lot residential subdivision (“Subdivision”) proposed by Lennar Homes of California, LLC (“Lennar”) at the northeast corner of North Avenue and the Indianola Avenue alignment. One of the conditions of approval of that project was to acquire and construct the master -planned, regional storm drain basin facility for Sanger’s Southwest Drainage Area (“Basin”). This Drainage Area is generally bounded by Jensen Avenue on the north, Bethel Avenue on the east, and the proposed city development limits on the west and south. The Southwest Drainage basin is planned to be located south of North Avenue between Indianola and Bethel Avenues, and has been included in the last two General Plan s as a planned public facility (See Attachment 1 for the General Plan Land Use Map with Basin located highlighted).

Following approval of the Tentative Map, Lennar submitted a Final Map for Phase 1 of the Subdivision and has negotiated the purchase and sale of approximately 11.44 acres of land for the Basin. The Basin is located within 29.32 acres of property owned by Chooljian Farms, a California general partnership (“Chooljian”), APN 332-080-40 (See Attachment 2 for location maps). Because the Basin will be owned and maintained by the City, the land is proposed to be purchased by Lennar and dedicated directly to the City, necessitating that the City be party to the agreement.

Additionally, because the acquisition of land for regional storm drain purposes is eligible for reimbursement and/or fee credit from the City’s storm drain development impact fees, Lennar has requested that the City approve a Storm Drain Reimbursement and Fee Credit Agreement. That agreement is conditioned upon Lennar’s acquisition of the property and allows for the City to reimburse Lennar upon execution of the agreement with whatever funds are available in its impact fee account, and to approve credits for storm drain impact fees that would otherwise be due by Lennar in developing any land within the boundaries of the Southwest Drainage Area, which is within the area of benefit of the Basin. The Planning Commission, at its regular meeting on November 10, 2025, adopted Resolution No. 2025-10, making a finding of General Plan conformity for the proposed acquisition of real property for the Basin in accordance with California Government Code Section 65402.

The Basin purchase price is based on a purchase price of $100,000 per acre, and is projected at $1,144,000 pending final approval of the property legal description by the City Engineer. Adoption of the resolution included herein as Attachment 3 will provide the City Council’s approvals on the following:

1. Agreement for Purchase and Sale of Real Property and Joint Escrow Instructions with Lennar and Chooljian; and

2. Storm Basin Reimbursement and Fee Credit Agreement with Lennar.

REASON FOR RECOMMENDATION:

The proposed storm drain basin has been planned as a regional facility for more than two decades, provides a public benefit, and implements the City’s General Plan for orderly development and construction of planned public utilities. The acquisition of the land for this purpose is a condition of approval of an approved subdivision map.

01236.0105/831146.1
FISCAL IMPACT:

The Basin property value is projected at $1,144,000. The Storm Drain Reimbursement and Fee Credit Agreement also contemplates the reimbursement by the City to Lennar for ancillary costs associated with the acquisition including title and escrow fees, etc. Lennar’s administrative costs are not eligible for reimbursement or fee credits.

ACTIONS FOLLOWING APPROVAL:

Lennar shall open an escrow and make an initial deposit of $100,000 to the account while the Escrow Holder will work to clear the property title of existing deeds of trust and/or other required clearances prior to recordation of the grant deed. Following recordation and close of escrow, Lennar will provide the required documentation to support the reimbursement/fee credit. The City will determine what reimbursement can be made to Lennar and will issue payment from the Storm Drain Impact fee fund balance. Any remaining funds owed would be claimed by Lennar as Storm Drain Impact fee credits through the Subdivision Agreement for the Subdivision. Once the Subdivision improvement plans are approved, Lennar will construct the improvements including the initial construction phase of the Basin.

01236.0105/831146.1

ATTACHMENT 1

WWTP

CITY LIMITS

CITY LIMITS

SPHERE OF INFLUENCE

SPHERE OF INFLUENCE
E E
E
E
E
S H
E
S H J
E
E
E

SPECIFIC PLAN OVERLAY
S H
! !
! !
! !
! !
! !
! !

NORTH AVE

JENSEN AVE K ST

ANNADALE AVE

ACADEMY AVE

BETHEL AVE

FIFTH ST

NINTH ST

BUTLER AVE

GREENWOOD AVE

WEBSTER AVE

QUALITY AVE

INDIANOLA AVE

FOURTH ST

KINGS CANYON RD

MARY AVE

LORENA AVE

FLORENCE AVE

CANAL DR

LIME AVE

RICHARD
AVE

CHERRY AVE
DE
W
ITT
AVE

VINE ST

ALMOND AVE

SANGER AVE

TUCKER AVE

CHURCH AVE
TW

E LFTH ST

HUME DR

MOIR AVE

SECOND ST

SEVENTH ST

FAIRBANKS
AVE

SIXTH ST

ANNADALE AVE

BREHLER AVE

ATCHISONAVE

STERLING AVE

GLORIA AVE

HOAG AVE

LYON AVE

PALM AVE

TENTH ST

CENTRAL AVE

ACACIAAVE

ELEVENTH STO ST

HARRISON AVE
P ST

MORTON AVE
J ST
INDU
STRIAL
AVE
Q ST
L ST

TAIT AVE

OATMAN AVE
I ST

RAINBOW AVE

THIRD ST

EDGAR AVE

VINE AVE

CALIFORNIA AVE

GEARY AVE

NILE AVE

OLIVE AVE

OAK AVE

GRIFFIN AVE

PARK AVE

POST AVE

SEQUOIA AVE

ACACIADR

COTTLE AVE

WOODS AVE

MADSEN AVE

LEWIS LN

SWAN AVE

MADSEN AVE

KEISER AVE

BUTLER AVE

TURNEY AVE

GOODFELLOW AVE
DEL
REY
AVE

ROSS AVE

NEWMARK AVE

CALIFORNIA AVE

SWITCH AVE

HAWLEY AVE

WALTON AV E
REAG
AN
AVE
W
EST

AVEHILL AVE

PEARL AVE
LILY
AVE

FALLER AVE

HUME RD

INDIANOLA AVE

RAWSON AVE

HOLT AVE

METZLER DR
NEW
MARK
AVE
O
0 2,000 4,000
Feet
2035 Sanger General Plan
Diagram 2-1: Proposed Land Uses
Updated: 7/10/2019
Document Path: G:\Sanger\2020\MXD\General_Plan_Land_Use_update.mxd Commercial - Neighborhood (21 ac.)
Commercial - Community (6 ac.)
Commercial - General (282 ac.)
Commercial - Central (28 ac.)
Commercial - Office (48 ac.)
Commercial - Highway (112 ac.)
Industrial - Light (306 ac.)
Industrial - Heavy (209 ac.)
Schools (270 ac.)JHSE
Public Facility (257 ac.)
Agricultural (533 ac.)
Park / Open Space (241 ac.)
(310 ac. with floating parks)
Storm Drain Facility (87 ac.)
HSResidential - Low Density (127 ac.)
Residential - Medium Low Density
(1,050 ac.)
Residential - Medium Density (1,664 ac.)
Residential - Medium High Density
(248 ac.)
Residential - High Density (129 ac.)
Mixed Use - Retail (162 ac.)

AREA IN QUESTION
TRACT 6493

PLANNED BASIN LOCATION

01236.0105/831146.1

ATTACHMENT 2

Southwest Area Drainage Basin Location
Aerial View
Legend
1000 ft
N➤➤
N
Image © 2025 AirbusImage © 2025 Airbus
TRACT 6493

PROPOSED BASIN AREA

/0 /1 /2 /3 /4 /5 □ /7 /4 /1 /8 /4 /5
/9 /10 □ /12
/13 /10 /10 □ /14 /15 /16 /17 /18 /19 /20 /21 /20 /22 /23 /24 □ /26 /27 /28 /23 /20 /19 /29 /30 /31 /32 /33 /32 /34 □ /36 /37 □ /38 /39 /33 /40

CHOOLJIAN PROPERTY

29.32 AC +/-
PROPOSED BASIN - 11.4 AC +/-
APN 332-080-40

Southwest Area Drainage Basin Location
Street View looking west along North Avenue
Legend

5.56 ft
N
➤➤
N
© 2025 Google© 2025 Google

Southwest Area Drainage Basin Location
Street View looking east along North Avenue
Legend

5.64 ft
N➤➤N
© 2025 Google© 2025 Google

01236.0105/831146.1

ATTACHMENT 3

01236.0105/831126.1

RESOLUTION NO. 2025-100

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANGER

APPROVING AN AGREEMENT FOR PURCHASE AND SALE OF REAL

PROPERTY AND JOINT ESCROW INSTRUCTIONS WITH LENNAR
HOMES OF CALIFORNIA, LLC (“LENNAR”) AND CHOOLJIAN

FARMS AND APPROVING A STORM BASIN REIMBURSEMENT AND

FEE CREDIT AGREEMENT WITH LENNAR

WHEREAS, at its meeting of July 24, 2025 the Sanger Planning Commission conditionally approved Tentative Tract 6493, a residential subdivision proposed by Lennar Homes of California, LLC, a California limited liability company (“Lennar”); and

WHEREAS, this approval (among others by the Planning Commission and City Council) authorized the development of a proposed 530- lot single-family residential subdivision (“Subdivision”) near the northeast corner of North and Indianola Avenues, subject to the conditions of approval (“Conditions”) included within Planning Commission Resolution No. 2025-06; and

WHEREAS, one of the conditions of approval for the Subdivision is the acquisition of land for, and construction of, a master -planned regional storm drainage basin serving Sanger’s Southwest Drainage Area (“Basin”); and

WHEREAS, the Basin has been a planned public facility called for in the General Plan for multiple decades; and

WHEREAS, at its meeting of November 10, 2025, the Sanger Planning Commission approved Resolution No. 2025-10, making a finding of General Plan conformity for the proposed acquisition of the Basin property in accordance with California Government Code Section 65402; and

WHEREAS, Lennar has negotiated the purchase and sale of the Basin property with the property owner, Chooljian Farms, a California general partnership (“Chooljian”), an agreement for which is included as Exhibit A to this resolution and which includes the City as a party for acceptance of the property dedication; and

WHEREAS, the acquisition of property for planned storm drain basins is defined as eligible for fee credits and reimbursements under Sanger Municipal Code Chapter 50, Article II, “Developmental Impact Fees”; and

WHEREAS, Lennar has requested that the City enter into an agreement to provide for reimbursement and/or impact fee credits for the purchase of the Basin property, which is included as Exhibit B to this resolution; and

01236.0105/831126.1

WHEREAS, City staff has reviewed all provided documentation and recommends approval by the Sanger City Council.

NOW, THEREFORE, the City Council of the City of Sanger does resolve as follows:

1. The Agreement for Purchase and Sale of Real Property and Joint Escrow instructions, attached hereto as Exhibit A to this Resolution, is approved as to its material terms. The City Manager is authorized to execute and to take any action to effectuate the same, including attaching exhibits such as the grant deed and Storm Basin Reimbursement and Fee Credit Agreement and to make any non -material modifications, all subject to approval as to legal form by the City Attorney.

2. The Storm Basin Reimbursement and Fee Credit Agreement, attached hereto as Exhibit B to this Resolution (and also referenced as Exhibit “E” in the Agreement for Purchase and Sale Agreement), is approved. The City Manager is authorized to execute and to take any action to effectuate the same, including making any non-material modifications, all subject to approval as to legal form by the City Attorney.

3. To the extent not otherwise authorized herein, the City Manager is authorized to take any and all actions on behalf of the City to effectuate the intent of the above agreements and to secure the transfer of the Basin for the City, including any item related to annexation of the same.

* * * * * * * * * * * * * * * *

The foregoing resolution was considered by the City Council of the City of Sanger at a regular meeting of said Council held on the 18
th day of December, 2025, and adopted by the following
vote:

AYES: COUNCILMEMBERS:

NOES: COUNCILMEMBERS:

ABSTAIN: COUNCILMEMBERS:

ABSENT: COUNCILMEMBERS:

ATTEST:

_______________________________
Lina Martinez, City Clerk

01236.0105/831126.1

EXHIBIT A

Agreement for Purchase and Sale of Real Property and Joint Escrow Instructions

01484.0006 2069675.1 Page 1 of 13

AGREEMENT FOR PURCHASE AND SALE

OF REAL PROPERTY AND JOINT ESCROW INSTRUCTIONS

This Agreement for the Purchase and Sale of Real Property and Joint Escrow Instructions (the “Agreement”) dated December ____, 2025 (the “Effective Date”) , is entered into by and among (i) CHOOLJIAN FARMS, a California general partnership (“Owner”), (ii) LENNAR HOMES OF CALIFORNIA, LLC, a California limited liability company (“Buyer” or “Lennar”), and (iii) the CITY OF SANGER, a California municipal corporation (“City”). Owner, Lennar, and City are sometimes collectively referred to herein as the “Parties” and individually as a “Party.”

RECITALS
A. WHEREAS, Owner owns real property in the County of Fresno, State of California, more particularly described as APN 332-080-40, consisting of approximately 29.32 acres, as legally described in Exhibit “A” and illustrated in Exhibit “B” (“Owner’s Property”).

B. WHEREAS, Lennar is a residential home builder constructing Tract No. 6493, located on the northeast corner of North Avenue and the future alignment of Indianola Avenue, in the County of Fresno, State of California.

C. WHEREAS, as a condition of the City’s approval of Tentative Tract Map No. 6493, the City has required that Lennar acquire and dedicate approximately 11.44 acres of the Owner’s Property for purposes of constructing and installing a permanent storm drainage basin, as legally described in Exhibit “C” and illustrated in Exhibit “D” (the “Property”).

D. WHEREAS, following Lennar’s funding of the Purchase Price into Escrow, Owner will convey the Property directly to the City, and the City will accept title and assume ownership of the Property.

E. WHEREAS, the City and Lennar intend to enter into a separate Storm Basin Reimbursement and Fee Credit Agreement (the “Reimbursement Agreement”) under which the City shall reimburse Lennar for the fair market value of the Property through a combination of c ash reimbursement and/or impact fee credits, as set forth in the Reimbursement Agreement attached hereto as Exhibit “E.”

F. WHEREAS,
Lennar desires to fund the acquisition of the Property, and Owner desires to convey the Property to the City, and City desires to accept such conveyance, all pursuant to the terms and conditions set forth in this Agreement. The Property shall include all appurtenant rights, interests, privileges, easements, rights-of- way, tenements, declarant rights, fee credits, reimbursements, refunds, governmental approvals, and estates related thereto.

AGREEMENT
NOW, THEREFORE, for and in consideration of the mutual covenants and agreements contained in this Agreement, and other good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, the Parties hereby agree as follows:

1. INCORPORATION OF RECITALS AND EXHIBITS. The Recitals set forth a bove and the Exhibits attached to this Agreement are each incorporated into the body of this Agreement as if set forth in full.

2. PURCHASE PRICE. The “Purchase Price” shall be calculated by multiplying the number of gross acres times One Hundred Thousand Dollars and 00/100 ($100,000.00), as determined by

01484.0006 2069675.1 Page 2 of 13

a licensed civil engineer and mutually agreed to in writing by Buyer and Owner at least ten (10) days prior to Closing. The Purchase Price shall be paid in cash by Buyer to Owner at Closing, in consideration for Owner’s conveyance of the Property to the City. The City shall have no obligation to pay any portion of the Purchase Price to Owner. The Purchase Price represents payment solely for the conveyance of the underlying land, exclusive of any design, engineering, or construction costs, which shall be add ressed in separate agreements between Lennar and the City.

3. ESCROW AND DEPOSITS.

3.1 Opening Escrow. Upon the mutual execution of this Agreement, Lennar shall open an escrow with Lennar Title Company, Attn: Dennis Chaplin, 675 Placentia Avenue, Suite 225, Brea, CA 92821, (949) 404-2500, [email protected] (“Escrow Holder”), and deposit a fully executed copy of this Agreement with Escrow Holder. Escrow Holder shall obtain and issue a preliminary title report for the Property (the “Preliminary Report”), which shall show fee title in Owner subject only to those exceptions approved in writing by Lennar and the City. For purposes of this Agreement, the term “Preliminary Report” means the preliminary title report issued by Lennar Title Company (or another title insurer selected by Lennar) for the Property, together with all exceptions, documents, and supplements, as updated through the Close of Escrow.

3.2 Initial Deposit. Within ten (10) days from the Effective Date, Lennar will deliver a One Hundred Thousand Dollars ($100,000) deposit into Escrow. The Initial Deposit shall be held by Escrow Holder during the escrow period, and applied to the Purchase Price at the Close of Escrow.

3.3 Deposit of Purchase Price . On or before January 30, 2026, Lennar shall deposit the Purchase Price, in immediately available funds.

3.4 Deposit of Grant Deed. Not later than three (3) days from the date Lennar deposits the Purchase Price into Escrow, Owner shall deliver to Escrow a copy of the fully executed Grant Deed, and shall deliver the original fully executed Grant Deed to the City for recordation, substantially in the form attached hereto as Exhibit “F” (the “Grant Deed”). Owner shall convey the Property directly to the City at Closing, and the City shall accept title to the Property for use as a public storm drainage basin. The City’s acceptance of title shall not obligate the City to pay any portion of the Purchase Price directly to Owner.

The City’s reimbursement and/or fee credit obligations shall run solely to Lennar pursuant to the Reimbursement Agreement. Title insurance for the conveyance shall insure the City as the fee owner of the Property. The City shall ensure that the Grant Deed is recorded at Closing.

3.5 Partial Release of Deeds of Trust. The Owner’s Property is subject to: (i) Deed of Trust in favor of Rabobank, N.A. (“Lender No. 1”) recorded November 9, 2006 as Instrument No. 2006- 0238982 of Official Records to secure debt, (ii) Deed of Trust in favor of Rabo bank, N.A. (“Lender No. 2”) recorded March 29, 2019 as Instrument No. 2019-0031687 of Official Records to secure debt, (iii) Deed of Trust in favor of Rabob ank, N.A. (“Lender No. 3”) recorded March 29, 2019 as Instrument No. 2019- 0031689 of Official Records to secure debt and (iv) Deed of Trust in favor of Rabo AgriFinance LLC, a Delaware limited liability company (“Lender No. 4”) recorded September 30, 2022 as Instrument No. 2022- 0121524 of Official Records to secure debt. Owner shall obtain, at or prior to Closing, from Lender No. 1, Lender No. 2, Lender No. 3, and Lender No. 4, a partial release or partial reconveyance of the portion of

01484.0006 2069675.1 Page 3 of 13

the Owner’s Property constituting the Property, in recordable form and acceptable to Escrow Holder and the City (collectively, the “Partial Releases”). The Partial Releases shall fully release the Property from the lien of each Deed of Trust. No subordination shall be required, and the City shall not accept title to the Property subject to any private lien.

3.6 Title Review. Within three (3) business days after Escrow is opened , Escrow Holder shall deliver to Lennar and the City the Preliminary Report and all referenced documents, and shall provide updates when issued. Lennar and the City shall have ten (10) business days after Lennar and the City have received the Preliminary Report and all documents referenced thereinto deliver written objections (“Title Objection Notice”). Owner shall, at its sole cost, cure and remove all monetary liens, deeds of trust, taxes, mechanics’ liens, judgments, and any other encumbrances that must be removed for the City to accept title (“Required Cure Items”). For all other matters (“Non -Required Cure Items”), Owner shall have five (5) business days after receiving a Title Objection Notice to state whether Owner will cure. If Owner declines or fai ls to cure, Lennar and the City may each, independently, elect to waive the objection and proceed, or terminate this Agreement by written notice, in which case the Initial Deposit shall be returned to Lennar and the Parties shall have no further obligation s other than those that expressly survive termination. Closing is conditioned upon Owner conveying the Property to the City free and clear of all exceptions not expressly approved in writing by both Lennar and the City, and subject to the recordable Partial Releases required under Section 3.5.

3.7 Closing. For purposes of this Agreement, the term “Closing” or “Close of Escrow” shall mean the date on which Escrow Holder has received all funds and documents required to be deposited into Escrow under this Agreement and is authorized to: (i) release the Purchase Price (including the Initial Deposit) to Owner; and (ii) record the Grant Deed from Owner to the City in the Official Records of Fresno County, California. Closing shall occur not later than seven (7) days after Escrow Holder’s receipt of (a) the Purchase Price, (b) the fully executed Grant Deed from Owner to the City, and (c) the fully executed Partial Releases in recordable form from each lender identified in Section 3.5, together with all other documents and deliveries required under this Agreement. Notwithstanding anything to the contrary contained in this Agreement, Lennar’s obligation to authorize the Close of Escrow shall be expressly conditioned upon Lennar’s successful closing, on or before January 26, 2026, of that certain Purchase and Sale Agreement dated October 12, 2023, by and between Lennar Homes of California, LLC and G4 Properties, LTD., a California limited partnership, for the acquisition of approximately forty (40) acres of real property located in the City of Sanger, California (the “G4 Closing”). In the event the G4 Closing has not occurred on or before such date, Lennar may, upon written notice delivered to Owner and the City, elect to terminate this Agreement, in which event Escrow Holder shall promptly return the Initial Deposit to Lennar, and thereafter the Parties shall have no further obligations hereunder except for those obligations which expressly survive termination.

3.8 Reimbursement Agreement. Concurrently with the conveyance of the Property to the City, Lennar and City shall execute and deliver the Reimbursement Agreement, attached hereto as Exhibit “E.” City’s obligation to reimburse or credit Lennar for the land acquisition cost shall be governed exclusively by the Reimbursement Agreement.

The execution of the Reimbursement Agreement shall be
a condition precedent to City’s acceptance of the Grant Deed.

3.9 Cooperation. With the cooperation of Owner, Lennar, at its expense, shall obtain

01484.0006 2069675.1 Page 4 of 13

approvals necessary to convey the Property to the City.

4. POSSESSION. The Parties acknowledge that Owner and Lennar have previously entered into that certain Property Access License Agreement dated October 30, 2025 (the “License Agreement”), which governs Lennar’s and its consultants’ temporary right of entry onto the Property prior to the Close of Escrow. Upon the Close of Escrow, title to the Property shall transfer directly from Owner to the City, and Owner shall have no further rights or obligations relating to access, possession, or use of the Property.

Any entry onto the Property after the Close of Escrow shall be subject solely to the City’s authority and any agreements between Lennar and the City. This Section 4 shall survive the Close of Escrow.

5. REPRESENTATIONS AND WARRANTIES OF OWNER. Owner makes the following representations and warranties to Lennar:

5.1 Ownership. Owner owns Owner’s Property in fee simple absolute and has title to such real property, except as disclosed in the Preliminary Report, including the Deeds of Trust described in Section 3.5. Owner has not alienated, encumbered, transferred, optioned, leased, assigned, or otherwise conveyed its interest or any portion of its interest in the Property , or any portion thereof nor has Owner entered into any agreement (other than this Agreement) to do so.

5.2 Authority. Owner has the full capacity, right, power and authority to enter into this Agreement and to perform its obligations hereunder, and the person(s) executing this Agreement on behalf of Owner has the right, power and authority to do so.

5.3 Binding Agreement. This Agreement constitutes the legal, valid and binding obligation of Owner enforceable against Owner in accordance with its terms, except to the extent that such enforcement may be limited by applicable bankruptcy, insolvency, moratorium and other principles relating to or limiting the rights of contracting parties generally. Neither this Agreement nor the consummation of any of the transactions contemplated hereby violates or shall violate any provision of any agreement or document to which Owner is a party or to which Owner is bound. No consent from any third party is required before any of the Property is to be conveyed to City.

5.4 Absence of Lawsuits. To Owner’s actual knowledge, there are no lawsuits, claims, suits, proceedings or investigations pending or threatened against or affecting Owner or any of the Property nor is there any basis for any of the same, and there are no lawsuits, suits or proceedings pending in which Owner is the plaintiff or claimant and which relate to the Property . There is no action, suit or proceeding pending or threatened which questions the legality or propriety of the transactions contemplated by thi s Agreement.

5.5 No Commitments. To the best of Owner ’s actual knowledge, except for matters disclosed by Owner in writing to Lennar prior to opening Escrow, Owner has made no oral or written commitments or representations to, or understandings or agreements with, any person, firm or entity, any adjoining property owner which would in any way be binding on Lennar or City or would interfere with Lennar’s or City’s ability to develop and improve the Property, and Owner shall not make or enter into any such commitment, representations, understandings or agreements without Lennar’s written consent.

01484.0006 2069675.1 Page 5 of 13

5.6 Insolvency. Neither Owner , nor any entity or person that directly or indirectly owns or controls Owner is bankrupt or insolvent under any applicable Federal or state standard, nor has any such party filed for protection or relief under any applicable bankruptcy or creditor protection statute nor has any such party been threatened by creditors with an invol untary application of any applicable bankruptcy or creditor protection statute. Owner is not entering into the transactions described in this Agreement with intent to defraud any creditor or to prefer the rights of one creditor over any other. Owner and Lennar have negotiated this Agreement at arm’s-length and the consideration to be paid represents fair value for the assets to be transferred.

6. GOVERNING LAW/SEVERABILITY. This Agreement shall be governed by and construed in accordance with the laws of the State of California. If any provision in this Agreement is held by a court of competent jurisdiction to be invalid, void or unenforceable, the remaining provisions shall continue in full force without being impaired.

7. ARBITRATION OF DISPUTES. EXCEPT AS PROVIDED BELOW, IF A DISPUTE

ARISES OUT OF OR RELATES TO THIS AGREEMENT, UPON THE WRITTEN DEMAND OF EITHER

PARTY, THE DISPUTE SHALL BE RESOLVED BY BINDING ARBITRATION IN ACCORDANCE WITH THE AMERICAN ARBITRATION ASSOCIATION’S COMMERCIAL ARBITRATION RULES EXCEPT THAT THE ARBITRATION SHALL BE CONDUCTED BY ONE (1) ARBITRATOR WHO IS A RETIRED JUDGE OR AN ATTORNEY WITH NOT LESS THAN FIFTEEN (15) YEARS’ EXPERIENCE IN REAL ESTATE MATTERS. DISCOVERY SHALL BE ALLOWED AS PROVIDED IN CODE OF CIVIL PROCEDURE SECTION 1283.05, THE PROVISIONS OF WHICH ARE INCORPORATED BY REFERENCE. THE ARBITRATOR MAY ORDER SPECIFIC PERFORMANCE WHEN THAT REMEDY IS PROVIDED FOR IN THIS AGREEMENT. THE JUDGMENT UPON THE

ARBITRATION AWARD SHALL BE FINAL AND BINDING UPON THE PARTIES AND MA Y BE ENTERED IN ANY COURT HAVING JURISDICTION THEREOF. IF THE PARTIES DO NOT AGREE UPON AN ARBITRATOR WITHIN FIFTEEN (15) DAYS AFTER DELIVERY OF A WRITTEN

DEMAND FOR ARBITRATION, THEN THE ARBITRATOR SHALL BE CHOSEN BY THE AMERICAN ARBITRATION ASSOCIATION. THE ARBITRATOR SHALL ALLOCATE THE FEES

AND COSTS OF ARBITRATION BETWEEN THE PARTIES AND SHALL AWARD COSTS, INCLUDING REASONABLE ATTORNEY’S FEES, TO EITHER PARTY. NOTHING CONTAINED IN

THIS SECTION SHALL RESTRICT EACH PARTY FROM SEEKING EQUITABLE RELIEF FROM THE COURT SYSTEM PENDING RESOLUTION OF THE ARBITRATION.

NOTICE: BY INITIALING IN THE SPACE BELOW YOU ARE AGREEING TO HAVE ANY DISPUTE ARISING OUT OF THE MATTERS INCLUDED IN THE “ARBITRATION OF DISPUTES” PROVISION

DECIDED BY NEUTRAL ARBITRATION AS PROVIDED BY CALIFORNIA LAW AND YOU ARE

GIVING UP ANY RIGHTS YOU MIGHT POSSESS TO HAVE THE DISPUTE LITIGATED IN A COURT OR JURY TRIAL. BY INITIALING IN THE SPACE BELOW YOU ARE GIVING UP YOUR JUDICIAL

RIGHTS TO DISCOVERY AND APPEAL, UNLESS THOSE RIGHTS ARE SPECIFICALLY INCLUDED IN THE “ARBITRATION OF DISPUTES” PROVISION. IF YOU REFUSE TO SUBMIT TO

ARBITRATION AFTER AGREEING TO THIS PROVISION, YOU MAY BE COMPELLED TO ARBITRATE UNDER THE AUTHORITY OF THE CALIFORNIA CODE OF CIVIL PROCEDURE.

YOUR AGREEMENT TO THIS ARBITRATION PROVISION IS VOLUNTARY. WE HAVE READ AND

01484.0006 2069675.1 Page 6 of 13

UNDERSTAND THE FOREGOING AND AGREE TO SUBMIT DISPUTES ARISING OUT OF THE MATTERS INCLUDED IN THE “ARBITRATION OF DISPUTES” PROVISION TO NEUTRAL ARBITRATION.

INITIALS OF OWNER: _____ _____ INITIALS OF LENNAR: _____ INITIALS OF CITY: _____

8. COUNTERPARTS. This Agreement may be executed in multiple counterparts, each of which shall be deemed an original, all of which, together, shall constitute one and the same instrument.

9. REAL ESTATE COMMISSION. Owner, Lennar and the City each represent and warrant to the other that they have not dealt with or been represented by any other brokers or finders in connection with the purchase and sale of the Property, except David Williams with California Commercial Land Sales (“Lennar’s Broker”). At Closing, through Escrow, Owner agrees to pay, at Owner’s sole cost and expense, Lennar’s Broker a real estate brokerage commission equal to three percent (3%) of the gross sales price of the Property. If any other claim is made for a commission or a finder’s fee in connection with the transaction contemplated by this Agreement, then the party upon whose alleged statement, representation or agreement that claim arises shall indemnify, defend, protect, and hold harmless the other party from and against all liability, damage, and cost (including attorney’s fees) the other party incurs as a result thereof.

10. ASSIGNMENT. Neither this Agreement nor any interest therein may be assigned by either party without the prior written consent of the other party, not to be unreasonably withheld, except that Buyer shall have the right to transfer Buyer’s rights and obligations, without the necessity of Owner’s prior written consent, to a third party in connection with a land banking arrangement, pursuant to which Buyer has the right to reacquire the Property. Notwithstanding the foregoing, Buyer shall remain liable with assignee for all of Buyer's obligations under this Agreement.

11. CITY COOPERATION. The Parties acknowledge that Government Code section 66426.5 exempts from the requirements of the California Subdivision Map Act the transfer of the Property from the Owner to the City for public utility purposes.

12. ENTIRE AGREEMENT. This Agreement constitutes the entire agreement between the Parties and supersedes all prior negotiations, understandings, and agreements, whether written or oral. The performance by the Parties under this Agreement constitutes the full consideration for Owner’s conveyance of the Property, and Lennar shall have no further obligation or liability relating to the location, grade, or construction of any public improvements or related facilities. The obligations of the Parties hereto shall survive the Close of Escrow.

13. BINDING EFFECT . This Agreement shall bind the respective heirs, personal representatives, successors, and assigns of the parties hereto.

(Signatures Appear on the Following Page)

01484.0006 2069675.1 Page 7 of 13

IN WITNESS WHEREOF, the parties have executed this Agreement, as of the Effective Date, as follows:

LENNAR:

LENNAR HOMES OF CALIFORNIA, LLC,
a California limited liability company

By: _____________________________
Mike Miller
Vice President

OWNER:

CHOOLJIAN FARMS , a California general
partnership

By: _____________________________
Sandra Barr
Managing Partner

By: _____________________________
Michael H. Chooljian
Managing Partner

CITY:

CITY OF SANGER, a California municipal
corporation

By: ________________________________
Nathan Olson, City Manager

Attest: _____________________________
Lina Martinez, City Clerk

Approved as to Form:

________________________________
Shannon Chaffin, City Attorney

01484.0006 2069675.1 Page 8 of 13

Exhibit “A”
Legal Description of Owner’s Property

(To Be Attached By Escrow)

01484.0006 2069675.1 Page 9 of 13

Exhibit “B”
Depiction of Owner’s Property

01484.0006 2069675.1 Page 10 of 13

Exhibit “C”
Legal Description of the Property

(To Be Attached By Escrow)

01484.0006 2069675.1 Page 11 of 13

Exhibit “D”
Depiction of the Property

01484.0006 2069675.1 Page 12 of 13

Exhibit “E”
Reimbursement Agreement

(To be attached post-execution when available)

01484.0006 2069675.1 Page 13 of 13

Exhibit “F”
Grant Deed

(To be attached post-execution when available)

01236.0105/831126.1

EXHIBIT B

Storm Basin Reimbursement and Fee Credit Agreement

Storm Water Reimbursement Agreement
Tract No. 6493

01236.0105/697714.6

STORM BASIN REIMBURSEMENT AND FEE CREDIT AGREEMENT

This Storm Basin Reimbursement and Fee Credit Agreement (the “Agreement”) dated December ____, 2025 (the “Effective Date”), is entered into by and among the CITY OF SANGER, a California municipal corporation (“City”) and LENNAR HOMES OF CALIFORNIA, LLC, a California limited liability company (“Developer” or “Lennar”). City and Lennar are sometimes collectively referred to herein as the “Parties” and individually as a “Party.”

RECITALS

A. WHEREAS, Lennar is a residential home builder constructing Tract No. 6493, a residential subdivision consisting of 269 lots on approximately 40-acres, located on the northeast corner of North Avenue and the future alignment of Indianola Avenue, in the County of Fresno, State of California (“Project”); and

B. WHEREAS, as a condition of the City’s approval of Tentative Tract Map No. 6493, the City has required that Lennar acquire and dedicate approximately 11.44 acres of real property for purposes of constructing and installing a permanent storm drainage basin to serve the Project (“Basin Property”); and

C. WHEREAS, the Basin Property is a portion of that certain real property in the County of Fresno, State of California, more particularly described as APN 332-080- 40, consisting of approximately 29.32 acres, owned by Chooljian Farms, a California general partnership (“Chooljian Farms”); and

D. WHEREAS, Chooljian Farms, Lennar, and the City have entered into a separate Agreement for Purchase a nd Sale of Real Property a nd Joint Escrow Instructions (“Purchase Agreement"), whereby Chooljian Farms agrees to transfer the Basin Property in fee to the City, with Lennar to pay for the purchase of the Basin Property, such that a storm water retention basin can be constructed on the Basin Property and other properties; and

E. WHEREAS, the City’s General Plan and Storm Drain Master Plan contemplate a storm water drainage retention basin at the Basin Property to serve storm water drainage needs of not only the Project, but surrounding properties; and

F. WHEREAS, pursuant to Section 66484 of the California Government Code, Section 50- 29 of the Sanger Municipal Code, and City Ordinance 8-21 and subsequent Resolution(s), the City of Sanger requires Developer to pay fees or install improvements to help cover the Developer’s fair share of the costs; and

G. WHEREAS, the Basin Property and related offsite improvements required to be obtained and installed by Developer exceed the Developer’s fair share of costs, but are necessary to ensure the public health, safety, and welfare arising from the Project and are necessary for the development of the Project; and

Storm Water Reimbursement Agreement
Tract No. 6493

01236.0105/697714.6

H. WHEREAS, the City collects impact fees from development projects that pay their fair share of costs for improvements installed by other development, which fees are used to reimburse other development on a “first in time, first paid” basis; and

I. WHEREAS, given that a final map has yet to be approved for the Project, at this time the Parties cannot accurately determine the fair share of cost obligations that Lennar would normally be required to pay; and

J. WHEREAS, given prior contractual obligations to reimburse development occurring prior in time, the available fund balance in the City’s storm water facility fund is also anticipated to be insufficient to immediately reimburse Lennar for the value of the Basin Property in excess of its fair share of costs at this time; and

K. WHEREAS, the Parties now desire to enter into this agreement, to allow for reimbursement of Lennar for the acquisition of the Basin Property as funding becomes available to the City from the storm water reimbursement account , and for any remaining portion not reimbursed to be eligible for fee credits towards storm water impacts for the future development of property subject to Tentative Tract No. 6493.

AGREEMENT

NOW, THEREFORE, for the purposes set forth herein, and for good and valuable consideration, the adequacy of which is hereby acknowledged, Developer and City hereby agree as follows:

1.0 Incorporation of Recitals. The Parties hereby affirm the facts set forth in the Recitals above and agree to the incorporation of the Recitals as though fully set forth herein. All attachments to this Agreement as Exhibits are incorporated into this Agreement by this reference.

2.0 Agreement Not Effective Until Basin Property Acquired. As a precondition to this Agreement, Developer shall have caused the transfer of the Basin Property to the City at Developer’s sole cost an d expense as required by the Purchase Agreement. As such, notwithstanding any other provision of this Agreement, this Agreement is expressly contingent upon, and shall not become effective, until the successful close of escrow and the transfer of the Basin Property to the City pursuant to the Purchase Agreement.

3.0 Fee Credit s and Eligible Cost Reimbursement. Lennar shall be entitled to compensation for the acquisition of the Basin Property, either as reimbursements or fee credits, for approved costs as follows:

3.1 Credit/Reimbursement Amount. The total eligible credit or reimbursement amount shall be that amount incurred by Lennar under the Purchase Agreement to pay for the Basin Property (“Costs”). Said Costs shall include the purchase price, closing costs (including, without limitation, the cost of escrow, title insurance, broker commissions, preliminary title reports, and recording), and any other costs specifically contemplated in the Purchase Agreement.

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Costs shall not include Lennar’s administrative costs. In order to secure final reimbursement or credit for the Costs, Lennar shall provide the following items to the City for review and determination:

3.1.1 Copies of the closing statement.

3.1.2 Copies of all invoices.

3.1.3 Copies of all checks issued by Lennar with related invoices indicated, including canceled checks for payments made (copies of both the front and back of the canceled checks).

3.1.4 A summary tabulation (spreadsheet) of all invoices and payments, including check numbers.

3.1.5 Such further documentation as may be reasonably required by the City to evidence the payment of each item of cost and invoice.

The City shall then make all determinations as to eligibility within thirty ( 30) days of receipt of the foregoing documentation. If any portion is denied, the City shall provide written notification in accordance with Section 4.4.

3.2 Limitation on Fee Credits . Notwithstanding any other provision of this Agreement, the amount of fee credits granted to Developer for storm water drainage facilities pursuant to this Agreement shall not exceed the applicable storm water drainage fee obligation otherwise due from the Developer for that facility type. If the amount of Costs from Section 3.1 exceeds the fee obligation for the Developer for storm water facilities despite any prior reimbursement(s) in part, the remaining balance shall be paid as a reimbursement to Developer pursuant to the procedures set forth in Section 3.3 below, unless Developer requests that all or a portion of the reimbursements be designated as credits to be assigned per Section 3.5 below to other properties.

3.3 Reimbursements. If Developer is owed a reimbursement for costs of acquiring the Basin Property, the priority of such reimbursement shall be based on the effective date of reimbursement agreements, with first in time receiving first reimbursement, with the priority for this Agreement being the Effective Date. Within sixty (60) days of the close of escrow and the completion of the transfer of the Basin Property to the City, City shall determine the amount of reasonably available funds in the storm water facility fund that has not been previously obligated or needed for programmed expenses, and shall pay the same to the Developer. Thereafter, the City shall set aside not less than fifty percent (50%) of i mpact fees received from future development to pay reimbursements as it collects fee revenues for storm water drainage facilities . Such payments shall be made by the City annually as funds become available until any Costs not otherwise fee credited or reimbursed have been satisfied . Notwithstanding the foregoing, the obligation arising from this Agreement is not a debt of the City, nor a legal or equitable pledge, charge, lien, or encumbrance, upon any of its property, or upon any of its income, receipts,

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revenues, and is payable only from the development fees deposited in the account for the storm water drainage fee program.

3.4 Intentionally Omitted.

3.5 Application of Fee Credit. Fee credits provided pursuant to this Agreement may be applied toward the payment of applicable storm water drainage development impact fees for (i) the Project, and (ii) other development property owned by Developer that is located within the drainage boundaries of the storm water basin constructed on the Basin Property and within the area subject to City approval. Application of fee credits to property other than the Project shall be subject to the prior written approval of the City’s Community Development Director, which approval shall not be unreasonably withheld. Such fee credits shall be applied at the time of issuance of building permits, consistent with City policy, and shall only apply to the fees within the storm water drainage fee program.

3.6 Index. Fee credits or reimbursements shall be adjusted based on the approved index within the fee program, if any. Any changes to the approved fee program index shall also apply to the fee credits or reimbursements secured by this Agreement.

4.0 Miscellaneous .

4.1 Assignment . Developer may assign all or a portion of its rights and obligations pursuant to this Agreement to a purchaser of a portion or portions of the property eligible to receive fee credits under this Agreement (an “Assignment”). Developer and such purchaser and/or assignee ("Assignee") shall provide to City such reasonable proof as it may require that Assignee is the purchaser of such portions of the eligible property, provided that a copy of the recorded deed or other conveyance document shall constitute sufficient proof. Any assignment pursuant to this section shall not be effective unless and until Developer and Assignee have executed an assignment agreement in the form attached hereto as Exhibit “ A.” The City’s Community Development Director is hereby authorized to execute any such assignment agreement on behalf of the City.

4.2 Relationship Between the Parties . The Parties hereby mutually agree that this Agreement shall not operate to create the relationship of partnership, joint venture, or agency between City and Developer. Developer’s contractors are exclusively and solely under the control and dominion of Developer. Nothing herein shall be deemed to make Developer or its contractors an agent or contractor of City.

4.3 Authority to Enter Agreement. Each Party warrants that the individuals who have signed this Agreement have the legal power, right, and authority to make this Agreement and bind each respective Party.

4.4 Notices . Any notice authorized, required, or permitted to be given hereunder shall be in writing and properly addressed to the party to be notified at the following address:

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To City:

City of Sanger
1700 7th Street
Sanger, CA 93657
Attn: Joshua Goggins, Community Development Director
Phone: (559) 876-6300 x 1520
Email: [email protected]

To Developer:

Lennar Homes of California, LLC
5 River Park Place East, Suite 210
Fresno, CA 93720
Attn: Mike Miller
Telephone: (559) 447-3400
Email: [email protected]

With a copy to:

Matthew G. Backowski, Esq.

Backowski Law Group, PC
7522 N. Colonial Avenue, Suite 100
Fresno, CA 93711
Telephone: (559) 214-0301
Email: [email protected]

Any notice shall be deemed to have been given upon actual receipt if sent by United States mail, postage prepaid, certified mail or registered mail, return receipt requested. Any notice delivered by hand delivery or sent by overnight courier shall be deem ed received on the date of actual receipt or upon refusal of delivery. Notice given by e -mail by the City shall be effective upon transmission unless notice of a failure of transmission is received by the City. The recipient of an e-mail notice shall have an affirmative obligation to send an e-mail response acknowledging the receipt of the e- mail and if such acknowledgment is not provided, a copy of any notice delivered by e-mail shall also be delivered as required by the first sentence of this paragraph. Any address for notice may be changed by ten (10) days’ prior written notice to the other party of such address change in the manner provided above.

4.5 Cooperation; Further Acts. The Parties shall fully cooperate with one another, and shall take any additional acts or sign any additional documents as may be necessary, appropriate, or convenient to attain the purposes of this Agreement.

4.6 Construction; References; Captions. It being agreed that the Parties or their agents have participated in the preparation of this Agreement, the language of this Agreement shall

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be construed simply, according to its fair meaning, and not strictly for or against any Party. Any term referencing time, days, or period for performance shall be deemed calendar days and not business days. All references to Developer include all personnel, employees, agents, and contractors of Developer, except as otherwise specified in this Agreement. All references to City include its elected officials, officers, employees, agents, and volunteers e xcept as otherwise specified in this Agreement. The captions of the various articles and paragraphs are for convenience and ease of reference only, and do not define, limit, augment, or describe the scope, content, or intent of this Agreement.

4.7 Ambiguities or Uncertainties . Any ambiguities or uncertainties herein shall be equally and fairly interpreted and construed without reference to the identity of the Party or Parties preparing this Agreement, on the express understanding and agreement that the Parties participated equally in the negotiation and preparation of the Agreement, or have had equal opportunity to do so. Accordingly, the Parties hereby waive the benefit of California Civil Code §1654 and any successor or amended statute, pro viding that in cases of uncertainty, the language of a contract should be interpreted most strongly against the Party who caused the uncertainty to exist.

4.8 Amendment; Modification. No supplement, modification, or amendment of this Agreement shall be binding unless executed in writing and signed by both Parties.

4.9 Waiver. No waiver of any default shall constitute a waiver of any other default or breach, whether of the same or other covenant or condition. No waiver, benefit, privilege, or service voluntarily given or performed by a Party shall give the other Party any contractual right by custom, estoppel, or otherwise.

4.10 Binding Effect. Each and all of the covenants and conditions shall be binding on and shall inure to the benefit of the Parties, and their successors, heirs, personal representatives, or assigns. This section shall not be construed as an authorization for any Party to assign any right or obligation.

4.11 No Third Party Beneficiaries . There are no intended third-party beneficiaries of any right or obligation assumed by the Parties.

4.12 Invalidity; Severability . If any portion of this Agreement is declared invalid, illegal, or otherwise unenforceable by a court of competent jurisdiction, the remaining provisions shall continue in full force and effect.

4.13 Consent to Jurisdiction and Venue. This Agreement shall be construed in accordance with and governed by the laws of the State of California. Any legal action or proceeding brought to interpret or enforce this Agreement, or which in any way arises out of the Parties’ activities undertake n pursuant to this Agreement, shall be filed and prosecuted in the appropriate California State Court in the County of Fresno, California. Each Party waives the benefit of any provision of state or federal law providing for a change of venue to any other court or jurisdiction including, without limitation, a change of venue based on the fact that a governmental entity is a party to the action or proceeding, or that a federal right or question is

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involved or alleged to be involved in the action or proceeding. Without limiting the generality of the foregoing waiver, Developer expressly waives any right to have venue transferred pursuant to California Code of Civil Procedure Section 394.

4.14 Time is of the Essence. Time is of the essence of this Agreement, and the same shall bind and inure to the benefit of the Parties hereto, their successors and assigns.

4.15 Counterparts . This Agreement may be executed in any number of counterparts, each of which shall be deemed an original, but all of which, taken together, shall constitute one and the same instrument.

4.16 Entire Agreement. This Agreement contains the entire agreement between City and Developer and supersedes any prior oral or written statements or agreements between City and Developer with respect to the subject matter hereof.

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IN WITNESS WHEREOF, the Parties hereto have executed this Agreement as of the day and year first above written.

CITY
City of Sanger
a General Law City

By _______________________
Nathan Olson, City Manager

ATTEST:

By: _______________________
Lina Martinez, City Clerk

Dated: __________________________

APPROVED AS TO FORM:

By: _______________________
Shannon Chaffin
City Attorney

LENNAR:

LENNAR HOMES OF CALIFORNIA,
LLC, a California limited liability company

By: _____________________________
Mike Miller
Vice President

(Attach Notary Acknowledgments)

EXHIBIT “A”

ASSIGNMENT AND ASSUMPTION AGREEMENT
THIS ASSIGNMENT AND ASSUMPTION AGREEMENT (the "Assignment") is made as of the ______ day of _____________, ______ by: (i) ________________, a ________________ ("Assignor"), and (ii) __________________________________, a _________________________ ("Assignee").

RECITALS
A. Concurrently with the execution and delivery hereof, pursuant to a certain Agreement of Purchase and Sale dated ________, __________ (the "Purchase Agreement") between Assignor and Assignee, Assignor is conveying to Assignee all of Assignor’s right, title and interest in and to the real property described on Exhibit A attached hereto and made a part hereof (the “Property”).

B. It is the desire of Assignor to hereby sell, assign, transfer, convey, set -over and deliver to Assignee all of Assignor’s right, title and interest in and to that certain Improvement Credit / Reimbursement Agreement between Assignor, as Developer, and the City of Sanger, a California municipal corporation, dated as of _____________, 2025 (the "Agreement").

AGREEMENT

1. Subject to the terms of the Purchase Agreement, Assignor does hereby sell, assign, transfer, set-over and deliver unto Assignee, its successors and assigns, all right, title and interest of Assignor in and to the Agreement.

2. Assignee accepts the foregoing assignment and assumes and agrees to be bound by and to perform and observe all of the obligations, covenants, terms and conditions to be performed or observed under the Agreement arising on or after the date hereof. Assignee further agrees to indemnify Assignor and hold Assignor harmless from and against any and all claims, liens, damages, demands, causes of action, liabilities, lawsuits, judgments, losses, costs and expenses (including, without limitation, attorneys’ fees and expenses) asserted against or incurred by Assignor by reason of or arising out of any failure by Assignee to perform or observe the obligations, covenants, terms and conditions assumed by Assignee hereunder arising in connection with the Agreement and related to the period on or after the date hereof.

3. This Assignment may be executed in two or more counterpart copies, all of which counterparts shall have the same force and effect as if all parties hereto had executed a single copy of this Assignment.

IN WITNESS WHEREOF, the parties have caused this Assignment and Assumption to be executed as of the date first written above.

Assignor: __________________________

By: ______________________________
Name: ____________________________
Its: _______________________________

Assignee: __________________________

By: ______________________________
Name: ____________________________
Its: _______________________________

APPROVED:

City of Sanger
By: ______________________________
Name: ____________________________
Its: Community Development Director