Upland City Council
May 9, 2022

11026-0088\2518011

ESCROW AGREEMENT

by and between

COMMUNITY FACILITIES DISTRICT NO. 2003-2

OF THE CITY OF UPLAND
(THE COLONIES AT SAN ANTONIO)

and
U.S. BANK TRUST COMPANY, NATIONAL ASSOCIATION,
as Trustee and Escrow Agent

Dated as of June 1, 2022

Relating to the Defeasance and Redemption of
Community Facilities District No. 2003-2
of the City of Upland (The Colonies at San Antonio)
Improvement Area No. 1
Special Tax Refunding Bonds
Issue of 2012

TABLE OF CONTENTS
Page

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Section 1. Definitions............................................................................................................. 1 Section 2. Trustee’s Acceptance of Duties ............................................................................ 2 Section 3. Incorporation of Indenture .................................................................................... 3 Section 4. Escrow Fund; Deposits ......................................................................................... 3 Section 5. Maintenance of Escrow Fund ............................................................................... 3 Section 6. Payment of Refunding Requirement ..................................................................... 4 Section 7. Verification ........................................................................................................... 4 Section 8. Compliance with Agreement and Indenture ......................................................... 4 Section 9. Tax Covenant ........................................................................................................ 4 Section 10. Defeasance and Redemption Notices .................................................................... 5 Section 11. Defeasance of Refunded Bonds ............................................................................ 5 Section 12. Nature of Lien ....................................................................................................... 5 Section 13. Amendments ......................................................................................................... 5 Section 14. Compensation of Trustee ...................................................................................... 6 Section 15. Resignation or Removal of Trustee; Appointment of Successor .......................... 6 Section 16. Limitation of Powers and Duties .......................................................................... 7 Section 17. Indemnification ..................................................................................................... 7 Section 18. Limitation of Liability........................................................................................... 8 Section 19. Termination ........................................................................................................... 8 Section 20. Governing Law ..................................................................................................... 9 Section 21. Severability ........................................................................................................... 9 Section 22. Counterparts .......................................................................................................... 9

APPENDIX A REFUNDING REQUIREMENT

APPENDIX B ESCROW SECURITIES

APPENDIX C FORM OF NOTICE OF DEFEASANCE

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ESCROW AGREEMENT
This Escrow Agreement (this “Agreement”) dated as of June 1, 2022, is made and entered into by and between the Community Facilities District No. 2003-2 of the City of Upland (The Colonies at San Antonio) (the “District”) and U.S. Bank Trust Company, National Association, a national banking association duly organized and existing under and by virtue of the laws of the United States of America, as the Trustee under the Indenture (defined below) and escrow agent hereunder (the “Escrow Agent”).

R E C I T A L S:

A. The District previously issued its Improvement Area No. 1 Special Tax Refunding Bonds, Issue of 2012, in the aggregate principal amount of $22,060,000 (the “2012 Bonds”).

B. The 2012 Bonds were issued pursuant to a Bond Indenture, dated as of July 1, 2012 (the “Indenture”), by and between the District and U.S. Bank Trust Company, National Association (successor in interest to U.S. Bank National Association), as trustee (in such capacity, the “Trustee”).

C. The District is issuing its Improvement Area No. 1 Special Tax Refunding Bonds, Issue of 2022 (the “2022 Bond”), to refund all of the 2012 Bonds, outstanding in the amount of $17,235,000 (the “Refunded Bonds”).

D. Pursuant, and subject, to the terms of the Indenture, if there has been deposited with the Escrow Agent, to be held in escrow, cash or qualified securities (or a combination thereof) which shall provide sufficient moneys to pay and redeem the Refunded Bonds on a designated redemption date, then the lien with respect to the Refunded Bonds under the Indenture shall cease (except for the payment thereof from the moneys held in escrow by the Trustee) and the Refunded Bonds shall be defeased.

E. In order to provide for the proper and timely application of the moneys to be deposited in escrow for the payment of the Refunded Bonds, the District has determined to enter into this Agreement.

NOW, THEREFORE, in consideration of the foregoing and of the mutual covenants hereinafter set forth, the parties hereto agree as follows:

Section 1. Definitions. Unless the context clearly requires otherwise, capitalized terms used in this Agreement shall have the meanings ascribed to them in the introductory paragraph and the Recitals hereof, and if not found therein, in the Indenture. In addition, as used herein, the following terms shall have the following meanings:
“2022 Trustee” means U.S. Bank Trust Company, National Association, in its capacity as the trustee under the 2022 Indenture.
“2022 Indenture” means the Bond Indenture, dated as of June 1, 2022, by and between the District and the 2022 Trustee relating to the 2022 Bond.

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“Administrative Expense Account” means the Administrative Expense Account within the Special Tax Fund established and held pursuant to Sections 3.2(a)(1) and Section 3.3 of the Indenture.
“Bond Counsel” means Richards, Watson & Gershon, A Professional Corporation, or such other attorney or firm of attorneys with experience in the issuance of obligations the interest on which is excludable from gross income for federal income tax purposes under the Code selected by the District.
“Closing Date” means June [6], 2022, the date on which the 2022 Bond is being issued. “Code” means the Internal Revenue Code of 1986, as amended. “Escrow Fund” means the fund by that name established by the Escrow Agent pursuant to Section 4, for the payment and redemption of the Refunded Bonds. “Escrow Securities” means the Investment Securities to be deposited in the Escrow Fund, as described in Appendix B.
“Investment Securities” means noncallable direct obligations of the United States of America, or bonds or other obligations which are noncallable and the payment of principal and interest of which are unconditionally and fully guaranteed by the United States of America, to mature or be withdrawable, as the case may be, not later than the time when needed for the payment and redemption of the Refunded Bonds in order to discharge the pledge and lien securing the Refunded Bonds.
“Redemption Date” means September 1, 2022.
“Refunded Bonds” means the 2012 Bonds to be defeased and redeemed pursuant to this Agreement.
“Refunding Requirement” means an amount sufficient to pay the principal, interest and the redemption premium (if any) with respect to the Refunded Bonds on the Redemption Date as set forth in Appendix A.
“Reserve Account” means the Reserve Account within the Special Tax Fund established and held pursuant to Sections 3.2(a)(5) and Section 3.6 of the Indenture. “Special Tax Fund” means the Special Tax Fund established and held pursuant to Section 3.2 of the Indenture.
“Surplus Fund” means the Surplus Fund established and held pursuant to Section

3.2(a)(7) and Section 3.8 of the Indenture.

Section 2. Escrow Agent’s Acceptance of Duties. The Escrow Agent hereby accepts the duties and obligations expressly provided in this Agreement and agrees that the irrevocable instructions to the Escrow Agent contained herein are in a form satisfactory to it.

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Section 3. Incorporation of Indenture. The applicable and necessary provisions of the Indenture, including redemption provisions and redemption provisions set forth in Articles IV and IX of the Indenture, are incorporated herein by reference. Reference herein to, or ci tation herein of, any provisions of the Indenture shall be deemed to incorporate the same as a part hereof in the same manner and with the same effect as if the same were fully set forth herein.

Section 4. Escrow Fund; Deposits.
(a) There is hereby created and established with the Escrow Agent a special and irrevocable escrow fund designated the “Escrow Fund,” to be held by the Escrow Agent separate and apart from all other funds of the District or the Escrow Agent and used only for the purposes and in the manner provided in this Agreement.
(b) On the Closing Date, the District shall cause to be transferred to the Escrow Agent a portion of the proceeds of the 2022 Bond, in the amount of $__, which the Escrow Agent shall deposit into the Escrow Fund.
(c) On the Closing Date, the Escrow Agent shall transfer the following funds and accounts held under the Indenture to the Escrow Fund: (i) $__ from the Reserve Account, (ii) $__ from the Special Tax Fund, (iii) $__ from the Administrative Expense Account, and (iv) $___ from the Surplus Fund.
(d) The sum of the deposits into the Escrow Fund, as described in this Section 4, is $___.

Section 5. Maintenance of Escrow Fund.
(a) The Escrow Agent, upon receipt of the moneys described in Section 4, shall immediately: (i) invest $___ of such moneys in the Escrow Securities set forth in Appendix B, (ii) deposit such securities in the Escrow Fund, and (iii) hold the remaining $__ as cash, uninvested, in the Escrow Fund.
(b) All proceeds received upon the maturity of the Escrow Securities, including interest earnings thereon, shall be retained in the Escrow Fund. The Escrow Agent is hereby authorized and empowered to deposit uninvested monies held hereunder from time to time in a demand deposit account, without payment of interest thereon as provided hereunder, established at commercial banks that are corporate affiliates of the Escrow Agent. (c) Notwithstanding the foregoing or any other provision of this Agreement to the contrary, at the written request of the District and upon compliance with the conditions hereinafter set forth, the Escrow Agent shall have the power to sell, transfer, request the redemption of or otherwise dispose of some or all of the Escrow Securities in the Escrow Fund and to substitute Investment Securities. The foregoing may be effected only if: (i) the substitution of Investment Securities for the substituted Escrow Securities occurs simultaneously; (ii) the amounts of and dates on which the anticipated moneys from such Escrow Account to be available for the payment or redemption of the Refunded Bonds on each payment or redemption date identified in Appendix A will not be diminished or postponed thereby, as shown in the certification (described below) of an independent certified public accountant; (iii) the Escrow

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Agent shall receive the unqualified opinion of counsel to the effect that the District has the right and power to effect such disposition and substitution; and (iv) the Escrow Agent shall receive from an independent certified public accountant a certification that, immediately after such transaction, the principal of and interest on the Investment Securities in the Escrow Fund will, together with other moneys available for such purpose, be sufficient to pay the Refunding Requirement. Any cash received from the disposition and substitution of Escrow Securities pursuant to this Section to the extent that, as shown in such certification, such cash will not be required, in accordance with the 2022 Indenture and this Agreement, at any time for the payment when due as provided in Section 6, shall be transferred to the District. (d) The District acknowledges that to the extent regulations of the Comptroller of the Currency or other applicable regulatory entity grants the District the right to receive brokerage confirmations of security transactions as they occur, the District will not receive such confirmations to the extent permitted by law. The Escrow Agent shall furnish the District periodic cash transaction statements which shall include detail for all investment transactions made by the Escrow Agent under this Agreement. The Escrow Agent may make any investments under this Agreement through its own bond or investment department or trust investment department, or those of its parent or any affiliate as principal or agent. The Escrow Agent or any of its affiliates may act as a sponsor, advisor or manager in connection with any investments made by the Escrow Agent under this Agreement.

Section 6. Payment of Refunding Requirement. The Refunded Bonds will be redeemed on September 1, 2022 (i.e., the Redemption Date). On the Redemption Date, the Escrow Agent shall disburse from the Escrow Fund an amount sufficient to pay the Refunding Requirement as indicated on Appendix A and apply such moneys to pay for the redemption of the Refunded Bonds for the equal and ratable benefit of the holders of the Refunded Bonds.

Section 7. Verification. The District has caused schedules to be prepared relating to the sufficiency of the funds deposited in the Escrow Fund to pay the Refunding Requirement.

The District shall furnish the Escrow Agent with the report of Causey Demgen & Moore P.C., verifying the mathematical accuracy of the computations contained in such schedules.

Section 8. Compliance with Agreement and Indenture. The Escrow Agent hereby agrees that the Escrow Agent will take all the actions required to be taken by it hereunder, including the timely transfer of moneys for the payment of principal, interest and redemption premium (if any) with respect to the Refunded Bonds, in order to effectuate this Agreement. The liability of the Escrow Agent for the payment of the Refunding Requirement, pursuant to this Section and under the Indenture, shall be limited to the application, in accordance with this Agreement, of moneys in the accounts of the Escrow Fund (including interest earnings thereon, if any) available for the purposes of and in accordance with this Agreement.

Section 9. Tax Covenant. Notwithstanding any other provision of this Agreement, the District hereby covenants that no part of the proceeds of the 2022 Bond or of the moneys or funds held by the Escrow Agent hereunder shall be used, and that the District shall not direct the Escrow Agent to use any of such moneys or funds at any time, directly or indirectly, in a manner that would cause the 2022 Bond to be an “arbitrage bond” under Section 148 of the Code and the regulations of the Treasury Department thereunder proposed or in effect at t he time of such use

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and applicable to the 2022 Bond. Neither the District nor the Escrow Agent shall transfer or otherwise dispose of moneys held in the Escrow Fund except as set forth in this Agreement; provided that the Escrow Agent may effectuate the transfer of such moneys to a successor Escrow Agent in accordance with the provisions of Section 15 relating to the transfer of rights and property to successor Escrow Agents.

Section 10. Defeasance and Redemption Notices. As soon as practicable upon the Escrow Agent’s receipt of moneys for deposit in the Escrow Fund pursuant to Section 4, the Escrow Agent shall send notices of defeasance to the registered owners of the Refunded Bonds, substantially in the form set forth in Appendix C. No later than the 30 days (but not more than 45 days) before the Redemption Date, the Escrow Agent shall also send notices of redemption for the Refunded Bonds in accordance with Section 4.5 of the Indenture.

Section 11. Defeasance of Refunded Bonds. Concurrently with the deposit of the moneys in the accounts of the Escrow Fund pursuant to Sections 4, the Refunded Bonds will no longer be deemed to be outstanding and unpaid within the meaning and with the effect expressed in the Indenture.

Section 12. Nature of Lien. The escrow hereby created shall be irrevocable. The holders of the 2012 Bonds shall have an express lien on all of the moneys in the Escrow Fund until paid out, used and applied in accordance with this Agreement.

Section 13. Amendments. This Agreement is made pursuant to and in furtherance of the Indenture and for the benefit of the District and the holders from time to time of the Refunded Bonds and shall not be repealed, revoked, altered, amended or supplemented without the written consent of all such holders and the written consent of the Escrow Agent and the District; provided, however, that the District and the Escrow Agent may, without the consent of, or notice to, such holders enter into such agreement supplemental to this Agreement as shall not materially adversely affect the rights of such holders and as shall not be inconsistent with the terms and provisions of this Agreement, for any one or more of the following purposes:
(a) To cure any ambiguity or formal defect or omission in this Agreement; (b) To grant to, or confer upon, the Escrow Agent for the benefit of the holders of the Refunded Bonds, any additional rights, remedies, powers or authority that may lawfully be granted to, or conferred upon, such holders or the Escrow Agent; (c) To transfer to the Escrow Agent and make subject to this Agreement additional funds, securities or properties;
(d) To conform the Agreement to the provisions of any law or regulations governing the tax-exempt status of the Refunded Bonds and the 2022 Bond in order to maintain their tax-exempt status; and
(e) To make any other change determined by the District to be not materially adverse to the holders of the Refunded Bonds.

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The Escrow Agent shall be entitled to rely exclusively upon an opinion of Bond Counsel with respect to compliance with this Section, including the extent, if any, to which any change, modification or addition affects the rights of the holders of the Refunded Bonds, or that any instrument executed hereunder complies with the conditions and provisions of this Section.

Section 14. Compensation of Escrow Agent. In consideration of the services rendered by the Escrow Agent under this Agreement, the District agrees to and shall pay to the Escrow Agent its proper fees and expenses in accordance with the agreement therefor reached by the Escrow Agent and the District, including all reasonable expenses, charges, counsel fees and other disbursements incurred by it or by its attorneys, agents and employees in and about the performance of their powers and duties hereunder, from any moneys of the District lawfully available therefor and the Escrow Agent shall have no lien whatsoever upon any of the moneys in the Escrow Fund for the payment of such proper fees and expenses.

Section 15. Resignation or Removal of Escrow Agent; Appointment of Successor.

The Escrow Agent at the time acting hereunder may at any time resign and be discharged from the duties hereby created by giving written notice to the District specifying the date when such resignation will take effect, but no such resignation shall take effect unless a successor Escrow Agent shall have been appointed by the holders of the Refunded Bonds or by the District as hereinafter provided and such successor Escrow Agent shall have accepted such appointment, in which event such resignation shall take effect immediately upon the appointment and acceptance of a successor Escrow Agent.

The Escrow Agent may be removed at any time by an instrument or concurrent instruments in writing, delivered to the District and signed by the registered holders of a majority in principal amount of the Refunded Bonds. The Escrow Agent may also be removed at any time by the District with not less than 30 days’ written notice to the Escrow Agent and the registered holders of the Refunded Bonds.

In the event the Escrow Agent hereunder shall resign or be removed, or be dissolved, or shall be in the course of dissolution or liquidation, or otherwise become incapable of acting hereunder, or in case the Escrow Agent shall be taken under the control of any public officer or officers, or of a receiver appointed by a court, a successor Escrow Agent may be appointed by the holders of a majority in principal amount of the Refunded Bonds, by an instrument or concurrent instruments in writing, signed by such holders, or by their attorneys in fact, duly authorized in writing; provided, nevertheless, that in any such event, the District shall appoint a temporary Escrow Agent to fill such vacancy until a successor Escrow Agent shall be appointed by the holders of a majority in principal amount of the Refunded Bonds, and any such temporary Escrow Agent so appointed by the District shall immediately and without further act be superseded by the Escrow Agent so appointed by such holders.

In the event that no appointment of a successor Escrow Agent or a temporary successor Escrow Agent shall have been made by such holders or the District pursuant to the foregoing provisions of this Section within 30 days after written notice of the removal or resignation of the Escrow Agent has been given to the District, the holder of any of the Refunded Bonds or any retiring Escrow Agent may apply to any court of competent jurisdiction for the appointment of a

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successor Escrow Agent, and such court may thereupon, after such notice, if any, as it shall deem proper, appoint a successor Escrow Agent.

No successor Escrow Agent shall be appointed unless such successor Escrow Agent shall be a national banking association or a corporation with trust powers organized under the banking laws of the United States or any state, and shall have at the time of appointment capital and surplus of not less than $50,000,000.

Every successor Escrow Agent appointed hereunder shall execute, acknowledge and deliver to its predecessor and to the District, an instrument in writing accepting such appointment hereunder and thereupon such successor Escrow Agent without any further act, deed or conveyance, shall become fully vested with all the rights, immunities, powers, duties and obligations of its predecessor; but such predecessor shall, nevertheless, on the written request of such successor Escrow Agent or the District execute and deliver an instrument transferring to such successor Escrow Agent all the estates, properties, rights, powers and duties of such predecessor hereunder; and every predecessor Escrow Agent shall deliver all moneys and securities, if any, held by it to its successor. Should any transfer, assignment or instrument in writing from the District be required by any successor Escrow Agent for more fully and certainly vesting in such successor Escrow Agent the estates, rights, powers and duties hereby vested or intended to be vested in the predecessor Escrow Agent, any such transfer, assignment and instrument in writing shall, on request, be executed, acknowledged and delivered by the District.

Any entity into which the Escrow Agent, or any successor to it, may be merged or converted or with which it or any successor to it may be consolidated, or any entity resulting from any merger, conversion, consolidation or tax-free reorganization to which the Escrow Agent or any successor to it shall be a party, shall, if it meets the qualifications set forth in the fifth paragraph of this Section, and if it is otherwise satisfactory to the District, be the successor Escrow Agent under this Agreement without the execution or filing of any paper or any other act on the part of any of the parties hereto, anything herein to the contrary notwithstanding.

Section 16. Limitation of Powers and Duties. The Escrow Agent shall have no power or duty to invest any funds held under this Agreement except as provided in Section 5.

The Escrow Agent shall have no power or duty to transfer or otherwise dispose of the moneys held hereunder except as provided in this Agreement.

Section 17. Indemnification. To the extent permitted by law, the District hereby assumes liability for, and hereby agrees (whether or not any of the transactions contemplated hereby are consummated) to indemnify, protect, save and keep harmless the Escrow Agent and its agents, employees and servants, from and against any and all liabilities, obligations, losses, damages, penalties, claims, actions, suits, costs, expenses and disbursements (including reasonable legal fees and disbursements) of whatsoever kind and nature which may be imposed on, incurred by, or asserted against, the Escrow Agent at any time (whether or not also indemnified against the same by the District or any other person under any other agreement or instrument, but without double indemnity) in any way relating to or arising out of the execution, delivery and performance of this Agreement, the establishment hereunder of the Escrow Fund, the acceptance of the moneys and securities deposited therein, transfer or other application of moneys by the Escrow Agent in accordance with the provisions of this Agreement; provided,

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however, that the District shall not be required to indemnify the Escrow Agent against the Escrow Agent’s own negligence or willful misconduct or the negligence or willful misconduct of the Escrow Agent’s agents, employees or servants. In no event shall the District or the Escrow Agent be liable to any person by reason of the transactions contemplated hereby other than as set forth in this Section. The indemnities contained in this Section shall survive the termination of this Agreement and removal or resignation of the Escrow Agent.

Section 18. Limitation of Liability. The Escrow Agent and its respective successors, assigns, agents and servants shall not be held to any personal liability whatsoever, in tort, contract, or otherwise, in connection with the execution and delivery of this Agreement, the establishment of the Escrow Fund, the acceptance of the moneys or securities deposited therein, the sufficiency of the moneys and securities held hereunder to accomplish the payment and redemption of the Refunded Bonds, or any payment, transfer or other application of moneys or securities by the Escrow Agent in accordance with the provisions of this Agreement or by reason of any non-negligent act, non-negligent omission or non-negligent error of the Escrow Agent made in good faith in the conduct of its duties. The Escrow Agent shall incur no liability for losses arising from any investment made in accordance with this Agreement. The recitals of fact contained in the Recitals of this Agreement shall be taken as the statements of the District, and the Escrow Agent assumes no responsibility for the correctness thereof. The Escrow Agent makes no representation as to the sufficiency of any securities purchased pursuant hereto, and any moneys to accomplish the payment and redemption of the Refunded Bonds pursuant to the Indenture or to the validity of this Agreement as to the District and, except as otherwise provided herein, the Escrow Agent shall incur no liability in respect thereof. The Escrow Agent shall not be liable in connection with the performance of its duties under this Agreement except for its own negligence or willful misconduct, and the duties and obligations of the Escrow Agent shall be determined by the express provisions of this Agreement. Anything in this Agreement notwithstanding, the Escrow Agent shall not be liable for any consequential (i.e., special or indirect) losses or damages in performing its duties or in exercising its rights or power pursuant to this Agreement. The Escrow Agent may consult with counsel, who may or may not be counsel to the District. Whenever the Escrow Agent deems it necessary or desirable that a matter be proved or established prior to taking, suffering, or omitting any action under this Agreement, such matter (except the matters set forth herein as specifically requiring a certificate of a nationally recognized firm of independent certified public accountants or an opinion of nationally recognized bond counsel) may be deemed to be conclusively established by a written certification of the District. Whenever the Escrow Agent shall deem it necessary or desirable that a matter specifically requiring a certificate of a nationally recognized firm of independent certified public accountants or an opinion of nationally recognized bond counsel be proved or established prior to taking, suffering, or omitting any such action, such matter may be established only by such a certificate or such an opinion. No provision of this Agreement shall require the Escrow Agent to expend or risk its own funds or otherwise incur any financial liability in the performance or exercise of any of its duties in accordance with this Agreement, or in the exercise of its rights or powers.

Section 19. Termination. This Agreement shall terminate when moneys have been applied to redeem and pay the Refunded Bonds pursuant to Section 6. Upon such termination, all moneys remaining in the Escrow Fund, if any, after payment of any amounts due the Escrow

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Agent hereunder shall be transferred to the 2022 Trustee for deposit in the Special Tax Fund established under 2022 Indenture, and the Escrow Fund shall be closed.

Section 20. Governing Law. This Agreement shall be governed by the law of the State of California.

Section 21. Severability. If any one or more of the covenants or agreements provided in this Agreement on the part of the District or the Escrow Agent to be performed should be determined by a court of competent jurisdiction to be contrary to law, such covenant or agreement shall be deemed and construed to be severable from the remaining covenants and agreements herein contained and shall in no way affect the validity of the remaining provisions of this Agreement.

All the covenants, promises and agreements in this Agreement contained by or on behalf of the District or the Escrow Agent shall bind and inure to the benefit of their respective successors and assigns, whether so expressed or not.

Section 22. Counterparts. This Agreement may be executed in several counterparts, all or any of which shall be regarded for all purposes as one original and shall constitute and be but one and the same instrument.

[Remainder of Page Intentionally Left Blank]

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IN WITNESS WHEREOF, the parties hereto have each caused this Agreement to be executed by their duly authorized officers and appointed or elected officials as of the date first written above.

COMMUNITY FACILITIES DISTRICT NO.
2003-2 OF THE CITY OF UPLAND (THE

COLONIES AT SAN ANTONIO)

By:

Mayor of the City of Upland
ATTEST:

By:

District Clerk

U.S. BANK TRUST COMPANY, NATIONAL

ASSOCIATION,
as Trustee and Escrow Agent

By:

Authorized Officer

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APPENDIX A

REFUNDING REQUIREMENT
Redemption Date Principal Interest
Redemption
Premium
Refunding
Requirement
September 1, 2022 $ $ 0.0% $_
* Consists of the following 2012 Bonds to be redeemed on the Redemption Date:

Maturity
Date
(September 1)

Principal

Interest
Rate

Redemption
Price
100%
100
100
100
100

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APPENDIX B
Escrow Securities
Securities Type Maturity Principal Amount Coupon
Expected Receipt
at Maturity
(including
principal and
interest)
9/1/2022 $ 0.00% $
_________________
* The expected receipt of $__, together with the $__ of uninvested cash in the Escrow Fund, will be sufficient to pay the Refunding Requirement of $__ on the Redemption Date of September 1, 2022.

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APPENDIX C
Form of

NOTICE OF DEFEASANCE
With reference to

Community Facilities District No. 2003-2 of the City of Upland (The Colonies at San Antonio)
Special Tax Refunding Bonds, Issue of 2012

(CUSIP Nos. 91535NBV3; 91535NBW1; 91535NBX9; 91535NBY7; 91535NBZ4; 91535NCA8)*

Dated: June [6], 2022
This Notice is being given on behalf of the Community Facilities District No. 2003-2 of the City of Upland (The Colonies at San Antonio) (the “District”) to the owners of the above- captioned bonds (the “2012 Bonds”).

The 2012 Bonds were issued pursuant to a Bond Indenture, dated as of July 1, 2012 (the “Indenture”), by and between the District and U.S. Bank Trust Company, National Association (successor in interest to U.S. Bank National Association), as trustee (the “Trustee”) Pursuant to the Indenture, the lien with respect to the 2012 Bonds under the Indenture has been discharged through the irrevocable deposit of cash and certain securities (consisting of [non-callable United States Treasury obligations]) in an escrow fund (the “Escrow Fund”), and held pursuant to an Escrow Agreement, dated as of June 1, 2022 (the “Escrow Agreement”), by and between the District and the Trustee.

Such deposit into the Escrow Fund has been calculated to provide sufficient moneys to:
(i) pay the principal of and interest on the 2012 Bonds scheduled to be due through and including September 1, 2022, and (ii) redeem on September 1, 2022, all 2012 Bonds maturing after September 1, 2022, at a redemption price equal to 100 percent of the principal thereof, plus unpaid accrued interest thereon, without premium.

U.S. BANK TRUST COMPANY, NATIONAL ASSOCIATION, as Trustee ____________________________________
* Neither the District nor the Trustee shall be held responsible for the selection or use of the CUSIP number, nor is any representation made as to its correctness. It is included solely for convenience of the owners of the 2012 Bonds.

Trevor Mael | SVP, Public Finance | Tel: 916.724.2423 | Email: tmael@ff -inc.com March 29, 2022

RE: Upland Community Facilities District No. 2003-2
2022 Refunding Bonds

Based upon your request and preliminary review of the information provided to-date, First Foundation Public Finance (“FFPF”) would like express its interest in underwriting and obtaining credit approval for the following Credit Facility to the Upland Community Facilities District No. 2003 -2 (The Colonies at San Antonio), CA (“Borrower”) based on the terms outlined below. This Letter is provided by First Foundation Public Finance for discussion purposes only. It is not intended to be binding, does not create any obligation on the part of First Foundation Public Finance to Sponsor or any third party, and is not a commitment to lend or agreement of any kind. No obligation whatsoever on the part of First Foundation Public Finance shall arise until execution and delivery of a formal commitment or loan documentation by a duly authorized officer of First Foundation Public Finance, which obligation shall be subject to all of the conditions contained therein.

The proposed loan conditions are:

STRUCTURE: Term
PURPOSE: Refund existing 2012 bonds
MAX. LOAN AMT: $16,500,000
INTEREST RATE: Tax-exempt NBQ: 2.74% (3.80% taxable equivalent) RATE LOCK: The Rate will be locked for until June 6th. If the Credit Facility fails to close within this period, FFPF reserves the right to adjust the rate.

TERM: 12-years
REPAYMENT: Semi-annual interest, annual principal payments AVERAGE LIFE: 6.45-years
PRE-PAYMENT: Repayable at 103% of par in years 1-2, decreasing to 102% in years 3-4, and 101% in year 5. Redeemable at par beginning in year 6 and thereafter. Individual parcel repayment allowable on any payment date at par.

COLLATERAL: Pledge of voter-approved special tax revenues DSR FUND: 2% of Par Amount
ADDITIONAL TERMS:Documents to be prepared by the Borrower’s Bond Counsel for review by FFPF’s counsel Nixon Peabody, LLP.

Legal fees and expenses of Nixon Peabody, LLP should not exceed $10,000. All other filing fees and related fees shall be paid by the Borrower in connection with the issuance (including applicable CDIAC fees).

Periodic financial and collateral reporting by the Borrower, as well as representations and warranties of the Borrower regarding its status and ability to repay, taxability gross -up and covenants and conditions that are appropriate for a Credit Facility of the scope and nature proposed above will be determined as part of FFPF’s underwriting and credit approval process.

PDF’s of all executed and other documents listed on the Closing Index shall be provided to FFPF no later than 24 hours before the time of the requested wire; provided, that if any documents can only be signed after receipt of the wire, those documents shall be provided immediately after receipt of the wire.

In an event of default, a default rate equal to the Interest Rate + 3.00% will be required.

Notice: The Federal Equal Credit Opportunity Act prohibits creditors from discriminating against credit applicants on the basis of race, color, religion, national origin, sex, marital status, age (provided the applicant has the capacity to enter into a binding contract); because all or part of the applicant's income derives from any public assistance program; or because the applicant has in good faith exercised any right under the Consumer Credit Protection Act. The federal agency that administers compliance with this law concerning this creditor is the Federal Deposit Insurance Corporation, Consumer Response Center, 1100 Walnut Street, Box #11, Kansas City, MO 64106.

PLACEMENT AGENT AGREEMENT
June 1, 2022
City of Upland
460 North Euclid Avenue
P.O. Box 460
Upland, CA 91785
Attention: Acting City Manager
The undersigned, Oppenheimer & Co. Inc. (the “Placement Agent”), offers to enter into the following agreement (this “Agreement”) with the City of Upland (the “Issuer”), which, upon acceptance by the Issuer, will be binding upon the Issuer and the Placement Agent.

The Issuer acknowledges and agrees that (i) the placement of the Community Facilities District No. 2003-2 (The Colonies at San Antonio), Improvement Area No. 1 Special Tax Refunding Bonds Series 2022 (the “Obligations”) pursuant to this Placement Agent Agreement is an arm’s-length commercial transaction between the Issuer and the Placement Agent, (ii) in connection therewith and with the discussion, undertakings and procedures leading up to the consummation of such transaction, the Placement Agent is not acting as a fiduciary of or a financial advisor to the Issuer, (iii) the Placement Agent has not assumed an advisory or fiduciary responsibility in favor of the Issuer with respect to (a) the offering of the Obligations or the process leading thereto (whether or not the Placement Agent has advised or is currently advising the Issuer on other matters) or (b) any other obligation to the Issuer except the obligations expressly set forth in this Placement Agent Agreement, and (iv) the Issuer has consulted with its own legal and other professional advisors to the extent it deemed appropriate in connection with the offering of the Obligations.

The Obligations shall be issued under and pursuant to the Bond Indenture, dated as of June 1, 2022 (the “Issuing Document”), by and between the Issuer and U.S. Bank Trust Company, National Association (the “Trustee”). In connection with the issuance of the Obligations, the Issuer is entering into an Escrow Agreement. The Bond Indenture and Escrow Agreement are collectively referred to herein as the “Issuer Documents.”
Upon the terms and conditions and upon the basis of the representations, warranties and agreements set forth herein, the Placement Agent and the Issuer hereby agree as follows:

1. Appointment of Placement Agent; Placement of Obligations; Closing. (a) The Issuer hereby appoints the Placement Agent to act, and the Placement Agent hereby agrees to act, as the exclusive placement agent for the Issuer in connection with the private sale and issuance of its Obligations, and the Placement Agent hereby accepts such appointment.

As compensation for its services hereunder, the Placement Agent shall charge a fee not in excess of $35,000. At the closing of any such sale, the Issuer shall pay or cause to be paid such fee to the Placement Agent by wire transfer or immediately available funds. The above fee does not include any services the Placement Agent may render in the future to the Issuer with respect to any offering or placement of municipal securities other than the Obligations.

2 (b) The Issuer understands that the Placement Agent will be acting as the agent of the Issuer in the offering and sale of the Obligations and agrees that, in connection therewith, the Placement Agent will use its “best efforts” to place the Obligations. The Placement Agent agrees that, in furtherance of its obligations hereunder, it shall provide substantially accurate and complete information to potential purchasers of the Obligations to the extent that it is able. (c) The Issuer expressly agrees that nothing in this Agreement evidences or creates any expressed or implied commitment by the Placement Agent to purchase or place any of the Obligations.
(d) On the closing date, the Issuer will cause to be delivered (a) a final approving opinion of Richards Watson Gershon, as Bond Counsel to the Issuer (“Bond Counsel”), dated the closing date, addressed to or with a reliance letter to the Placement Agent, in a form acceptable to the Placement Agent, to the effect that the Obligations constitute valid and legally binding obligations of the Issuer payable from and secured by special taxes as set forth in the Issuing Document and that the interest on the Obligations is exempt from federal and State of California income taxes under existing laws, regulations, rulings and judicial decisions, (b) one or more certificates in form and tenor satisfactory to the Placement Agent evidencing the proper execution and delivery of the Obligations and receipt of payment therefor, including statements of the Issuer, dated as of the date of such delivery, to the effect that there is no litigation pending or, to the knowledge of the signer or signers thereof, threatened relating to the issuance, sale and delivery of the Obligations, (c) a letter or certificate of the Purchaser, addressed to the Placement Agent, in form and content acceptable to the Placement Agent.

2. Reliance. The Issuer recognizes that, in providing services under this Agreement, the Placement Agent will rely upon and assume the accuracy and completeness of the financial, accounting, tax and other information discussed with or reviewed by the Placement Agent for such purpose, and the Placement Agent does not assume responsibility for the accuracy and completeness thereof. The Placement Agent will have no obligation to conduct any independent evaluation or appraisal of the assets or the liabilities of the Issuer or any other party or to advise or opine on related solvency issues. Nothing in this Agreement is intended to confer up on any other person (including creditors, employees or other constituencies of the Issuer) any rights or remedies hereunder or by reason hereof.

3. Termination. The Placement Agent’s authorization to carry out its duties hereunder may be terminated by the Issuer or the Placement Agent at any time with or without cause, effective upon receipt of written notice to that effect by the other party. Notwithstanding the foregoing, in the event the Issuer terminates this Agreement and within twelve (12) months after the Issuer sells the Obligations to an investor identified by the Placement Agent prior to such termination, the amounts payable under Section 1(a) shall be immediately due and payable to the Placement Agent by the Issuer.

4. Notices. Any notice or other communication to be given to any of the parties to this Agreement may be given by delivering the same in writing as follows: to the Issuer at 460 North Euclid Avenue, P.O. Box 460, Upland, California 91785 Attention: City Manager, and to the Placement Agent at 580 California Street, Suite 2300, San Francisco, California 94104, Attention:

Municipal Capital Markets Group.

5. Survival of Representations, Warranties and Agreements. This Agreement is made solely for the benefit of the Issuer and the Placement Agent, and no other person shall acquire or have any right hereunder or by virtue hereof. All of the representations, warranties and agreements of the

3 Issuer contained in this Agreement shall remain operative and in full force and effect regardless of delivery of any payment for the Obligations.

6. Counterparts. The Agreement may be executed in several counterparts, each of which shall be an original and all of which shall constitute but one and the same instrument.

7. Effectiveness. This Agreement shall become effective upon the execution of the acceptance hereof by duly authorized signatory of the Issuer, which acceptance hereof shall be indicated on the signature page hereof, and shall be valid and enforceable as of the time of such acceptance. This Agreement may be executed by facsimile transmission and in several counterparts, each of which shall be regarded as an original and all of which shall constitute one and the same document.

8. Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the State of California.

Very truly yours,
OPPENHEIMER & CO. INC.

By:

Managing Director

CITY OF UPLAND
By:

Authorized Officer

4

S T A F F R E P O R T
I T E M N O . 13.B .

D A T E :M ay 9 , 20 22
T O :M A YO R A N D C I T Y C O U N C I L
F R O M : M I C H A E L B L A Y, C I T Y M A N A G E R P R E P A R E D B Y : B R A D E N Y U, P U B L I C W O R K S D I R E C TO R

N I C O L E D E M O E T, E N V I R O N M E N TA L Q U A L I T Y A D M I N I S T R A TO R S U B J E C T :S E T A P U B L I C H E A R I N G TO C O N S I D E R P R O P O S E D PA S S -

T H R O U G H S E W E R R A T E S

R E C O M M E N D E D A C T I O N
I t is rec om m en d ed that t he C i ty C oun cil aut horize t h e C ity M anag er to p ost a P rop os it ion 21 8 p u b lic notification of a sewer rat e ad ju st m en t i n c lu d i n g a p as s-t h rou g h s ew er rate; an d t o set a p u b li c h eari n g d at e on J u n e 27 , 20 22 at 7 p .m . for c ons id erat ion of a sewer rate ad ju stm en t in clud in g p ass-th rou g h sewer rates.

G O A L S T A T E M E N T
Th e p rop osed ac ti on sup p orts t h e C ity's g oal of p rovid in g hig h -q u ality cos t-effec ti ve services to the com m un ity.

B A C K G R O U N D
O n J u n e 9 , 2 01 4, t h e C i ty ad op ted Resolu tion N o. 62 29 , settin g forth a five-year rate ad ju stm en t sch ed u le for the C it y S ewer S ervice Fee. T h e last rate ad ju s tm en t im p lem ented p u rsuan t to th is sched ule oc cu rred on J uly 1 , 2 01 7, settin g th e rate at $10 .10 p er E q uivalen t D w ellin g U nit (E D U ) p er m on th .

O n A u g u st 1 0, 20 15 , t he C i ty ad op ted Res olu ti on N o. 6 29 3 set ti n g forth a five-year ad ju stm en t s ch ed u le for t h e I n lan d E m p i re Utilities A g enc y (I E U A ) "Pass -T hroug h" S ewerag e Treatm ent Rate. T he l ast rat e ad ju st m en t i m p lem en t ed p u rsu an t to t h i s s ch ed u le oc cu rred on J u ly 1 , 20 19 , setting th e "Pass-T hroug h" rate at $2 0.0 0 p er E D U p er m on th .

O n N ovem b er 20 , 2 01 9, I E U A 's B oard of D irect ors ad op t ed a t w o-year rat e i n c reas e for F iscal Years 20 20 -21 and F Y 20 21 -22 , in creasing th e E D U m onthly rate to $20 .60 for F Y 2 02 0-2 1 and $21 .22 for F Y 2 02 1-2 2 b u t d ue to th e C O V I D p an d em ic , I E U A d ecid ed not t o in crease

th eir S ew er Treat m en t Rat e for F Y 20 20 -21 . I E U A d id in crease th eir rat e to $21 .22 for F Y 20 21 -22 .

O n J u n e 2 2, 20 20 , th e C it y C oun ci l m aintain ed t h e cu rrent F Y 2 01 9-2 0 S ewer E q uivalen t D w ellin g U n it (E D U ) rate am ou n t of $29 .69 p er E D U p er m ont h b y ab s orb in g th e I E U A in crease an d red u cing th e C ity's rate for F Y 20 20 -21 .

I E U A is cu rrent ly p rep arin g t o in crease th e E D U M on th ly Pas s-Th rou g h S ewer rate from the cu rrent F Y 20 21 -22 rate of $2 1.2 2 to $2 1.8 6 for F Y 20 22 -23 , an ap p roxim ate three p ercen t in crease. Th e p rop osed rat e in crease is sub ject t o I E U A B oard of D i rec tor ap p roval, cu rrently sched uled for J u ne 1 5, 2 02 2.

O n A p ri l 1 2, 2 02 2, s taff m ad e a p resent ation to t h e P u b li c W orks C om m itt ee reg ard in g the p rop osed Pass-Th rou g h rat e ad justm ent s. Th e C om m itt ee rec eived an d filed th e p resentation and recom m en d ed that C ity C oun cil d iscuss staff's recom m en d ation of a F ive-year Pass- Th rou g h of an y in creases of th e I E U A m on th ly E D U rat e not t o exceed 7% in an y calend ar year and in creasing U p l an d 's M on th ly S ew er rat e p ort ion b ac k to eit her $1 0.1 0 (7.6 %) or $1 0.8 5 (1 0.2 %) at the A p ril 25 , 20 22 C ity C oun cil M eeting .

O n A p ril 25 , 2 02 2, t h e C ity C ou n ci l d irected st aff to m ove forw ard with p rep arin g notices for a F ive-year Pass-Th rou g h of an y in creases of the I E U A m on th ly E D U rate n ot to exceed 7 % in any calend ar year and i ncreasin g U p lan d 's M on th ly S ewer rate p orti on b ac k t o $1 0.8 5 (10 .2%).

I S S U E S /A N A L Y S I S
I t is im p ortan t to en su re reven u e is ad eq u ate to m eet t h e sewer p rog ram req u irem en ts an d also t o p rovid e cost effective services to t h e p ub li c. T he C i ty s ew er s ervi ce rates are d esig n ed to coll ect on l y wh at is n eces sary to m eet th e p rog ram exp en ses rel ated to p rovid in g reli ab l e a safe s ervi ces an d m ain tai ni ng ad eq u ate reserves. I t is p rojec ted that for F Y 20 21 -22 the sewer exp en ses w ill b e m ore th an the an ticip ated revenu e b y ap p roxim ately $7 42 ,00 0.

I n ad d it ion , I E U A is p rop osi n g a 3% rate in crease for F Y 20 22 /23 . T h e p rop osed m on th ly sewer E D U rate w ou l d b e $21 .86 p er E D U. T h e C it y w il l need to in it iat e a P rop osi ti on 21 8 notification t o all ow ad ju st m en t for b oth C i ty S ew er rates and I E U A sewer treatm ent rates p rior to the im p lem entation of t he I E U A rat e ad ju st m en t. T h e i n i ti al s tep in d oi n g so, w ould b e st aff's recom m end ation to au th orize th e C ity M an ag er to p ost a P rop osition 21 8 p ub lic notification of a s ew er rat e ad ju st m en t for p ass-throug h s ew er rat es, an d to s et a p ub lic hearin g for th e con sid eration of a sew er p ass-th rou g h rate ad ju stm en t.

F I S C A L I M P A C T S
Th ere is no fis cal im p act rel ated to th is sp eci fic item ; h owever, if ap p roved at th e J u ne 2 7th C ity C ou n c il m eet in g , the p rop os ed rate increase s h al l p rovi d e ap p rop riate c ost recovery an d su fficien t accou nt ab ility m eth od s for ren d erin g s ew er services t o the C it y of U p land . T he p rop osed rate increases wou ld b ecom e effective J u ly 1 , 20 22 .

A L T E R N A T I V E S
P rovid e altern ative d irection to staff.

AT TAC HM E NT S :

Description
Notice of P ublic Hearing
Resolution No. 6229 - S ewer Rates
Resolution No. 6293 - P ass through Rates

CITY OF UPLAND

NOTICE OF PUBLIC HEARING

REGARDING PROPOSED ADJUSTMENTS TO

SEWER SERVICE CHARGES

In compliance with Article XIII D of the California State Constitution and the Proposition 218 Omnibus Implementation Act, the City of Upland is hereby notifying all affected property owners and customers of the proposed Sewer Service rate increases.

Public Hearing Information
NOTICE IS HEREBY GIVEN that the Upland City Council will hold a Public Hearing will be held on June 27, 2022, at 7:00 p.m., or as soon as possible thereafter, at Upland City Hall, located at 460 N. Euclid Avenue, Upland, CA 91786 to consider adopting increases in the rates for sewer service charges. The purpose of the public hearing is to consider all oral testimony and written protests to, and the adoption of, the proposed rates.

Proposed Rate Adjustments
The City of Upland (City) provides sewer services to customers within the city limits and charges customers a Sewer Service Charge. The rate of the Sewer Service Charges has two customer classes: (1) residential (which includes single-family and multi-family customers); and (2) non- residential (which includes commercial, industrial, and institutional customers). The rates consist of two components: (1) a charge for capital replacement, operations and maintenance, billing, customer service, and other related costs for sewer collection (the City Local Service Charge); and (2) a charge for sewage treatment and disposal (the Treatment Charge) to recover wholesale charges imposed on the City of Upland by the Inland Empire Utilities Agency (IEUA), the agency that treats and disposes of sewage collected by the City.

The rate for the City Local Service Charge is determined on an equivalent dwelling unit basis (EDU).

For residential and multi-family properties, one EDU is equivalent to approximately 270 gallons of discharge per day; therefore, these customers are assigned one EDU. Non-residential properties are assigned one or more EDU’s, depending on the projected quantity of wastewater a customer contributes (flow) to the wastewater system (determined on the basis of the number of fixture units) and the loads that a customer’s wastewater discharges put on the system (strength as determined on the basis of its discharge permit). The rates are calculated to proportionately allocate the costs of providing sewer services among the customer classes.

The City is proposing to increase the Local Service Charge to the last approved rate adjustment in 2018 of $10.85 per EDU. In 2018, IEUA began increasing their Sewer Treatment Rates nearly annually. With the City did not increase the overall sewer rate, and continued to pass the IEUA charges, effectively resulting in decreases in the City’s Local Service Charge over time and increasing the deficit in the Sewer Fund Reserve Balance. If the City does not increase the Sewer Service Charge, it will result in an anticipated deficit of $1.8 Million for Fiscal Year 2022/23.

Because City anticipates that there will be future increases in the rates that IEUA imposes on the City for sewage treatment and disposal, the City is also proposing to pass-through any future increases in the wholesale charges imposed by IEUA on to the City. If approved, these pass-through increases will impact the rates for the Treatment Charge. If approved, the annual pass-through adjustments may be implemented each fiscal year beginning July 1, 2022, and may be adjusted each fiscal year thereafter, through and including the fiscal year commencing July 1, 2026. If implemented, any annual IEUA charge may not exceed 7% annually, and shall not cause the sewer service charges to exceed the cost of providing sewer service.

If the rates are approved at the June 27, 2022 Public Hearing, those rates will take effective July 1, 2022.

How to Protest
The record owner of any parcel upon which the proposed fees or charges are proposed to be imposed or any tenant directly responsible for the payment of Sewer Service Charges (i.e., customer of record) may submit a written protest to the proposed rate increase; however, only one protest will be counted per identified parcel. Any written protest must: (1) state the protest is being submitted in opposition to the proposed rate increase; (2) provide the location of the identified parcel (by assessor’s parcel or street address); and (3) include the name and signature of the property owner or tenant directly responsible for the payment of the Sewer Service Charges submitting the protest. Written protests may be submitted by mail or in person to the City Clerk at City of Upland, 460 N. Euclid Ave., Upland, CA 91786, by June 27, 2022. Oral, telephonic, facsimile, and e-mail protests will not be accepted. Please identify on the front of the envelope for any protest, “2022 Public Hearing on Sewer Service Charges.”

The City Council will consider all written protests and hear and consider all oral comments to the proposed rate increases for Sewer Service Charges and the annual rate adjustment at the Public Hearing. Oral comments at the Public Hearing will not qualify as formal protests unless accompanied by a written protest. Upon the conclusion of the Public Hearing, the City Council will consider adoption of the rate increases to the Sewer Service Charges and the annual rate adjustment as described herein. If written protests against the proposed Sewer Service Charges and annual rate adjustment are not presented by a majority of the property owners of the identified parcels upon which the rates are proposed to be imposed and tenants directly responsible for the payment of the Sewer Service Charges, the City Council will be authorized to impose the Sewer Service Charges and annual rate adjustment as outlined above. If adopted, the proposed rate increases will take effect beginning July 1, 2022. There is a 120-day statute of limitations for challenging any new, increased, or extended fee or charge.

Questions
If you have questions regarding how your rates will be affected or this notice, please contact Michelle Madriz, Management Analyst (909) 291-2935

S T A F F R E P O R T
I T E M N O . 13.C .

D A T E :M ay 9 , 20 22
T O :M A YO R A N D C I T Y C O U N C I L
F R O M : M I C H A E L B L A Y, C I T Y M A N A G E R P R E P A R E D B Y : B R A D E N Y U, P U B L I C W O R K S D I R E C TO R ,

N I C O L E D E M O E T, E N V I R O N M E N TA L Q U A L I T Y A D M I N I S T R A TO R

M I C H E L L E M A D R I Z , M A N A G E M E N T A N A LY S T S U B J E C T :S E T A P U B L I C H E A R I N G TO C O N S I D E R P R O P O S E D S O L I D W A S T E

R A T E A D J U S T M E N T

R E C O M M E N D E D A C T I O N
I t is rec om m en d ed that t he C i ty C oun cil aut horize t h e C ity M anag er to p ost a P rop os it ion 21 8 p u b lic n oti fic ati on of a solid w ast e rat e ad ju st m en t; an d to s et a p ub lic h earin g d ate on J u ne 27 , 20 22 at 7 p .m . for consid eration of a solid w aste rate ad ju stm en t.

G O A L S T A T E M E N T
Th e p rop osed ac ti on sup p orts t h e C ity's g oal of p rovid in g hig h -q u ality cos t-effec ti ve services to the com m un ity.

B A C K G R O U N D
Un d er t h e curren t solid w ast e ag reem en t (S ection 1 0.0 6.b ), th e S ervice C om p on en t an d the P rog ram C ost C om p on en t of t he c u s tom er rates are su b jec t t o an nu al C onsum er P ri ce I n d ex (C P I ) ad ju st m en ts , w h ere b ot h are each cap p ed b y a 4% m axim um rat e ad ju stm en t each year. T he rate ad justm ent m u st b e req u ested b y B u rrtec and ap p roved b y C ity C ou ncil.

I n ad d it ion , S B 1 38 3 w as s ig ned in to law es tab li sh in g m et han e em i ss ion s red uction t arg ets in a st atewi d e effort t o red u ce em is si on s of sh ort -lived clim ate p oll u t an t s (S LC P ) caused b y org anic w ast e. T h is w as in ten d ed t o d rastically lim it s ou rces of m eth ane ent eri ng ou r Lan d fills w ith t he g oal to red u ce th e d i sp osal of org an ics was te b y 5 0% b y 2 02 1, an d 75 % b y t h e year 20 25 . W ith th ese ch ang es, th e C ity rates m ust also b e u p d ated to incorp orate the ad d ition al w ork n eed ed to com p ly with th ese n ew req uirem ents.

O n A p ri l 1 2, 2 02 2, s taff m ad e a p resent ation to t h e P u b li c W orks C om m itt ee reg ard in g the p rop osed rat e ad ju st m en ts. T h e C om m it tee recei ved an d fil ed t h e p resent ation an d recom m end ed that th e p resen tation b e forw ard ed to th e C ity C oun cil for th eir con sid eration.

I S S U E S /A N A L Y S I S
I n t he cu rren t A g reem ent, B urrt ec Was te I nd ustries, I n c . (B u rrtec) i s all ow ed to m ake a rate ad ju stm en t if req u est ed on or b efore M arch 15 th an n u all y, w hich th ey h ave com p leted (see Attach m en t 1 ). I n ad d i ti on, t h e p rop osed rates m ust al so b e u p d ated to i n c orp orat e the ad d ition al work n eed ed to c om p ly w ith t h e new S B 1 3 8 3 . S i n c e a fi n al ag reem ent has n ot b een reach ed b etween b oth p arti es, B urrt ec h as m ad e th e req uest for a rate in crease an d in anticip ation of th ese ch an g es, p rep ared a rate sc hed ul e t hat wou ld incorp orate the req uirem ents of S B 1 38 3. T he rate ad justm ent su b m ittals h ave b een review ed b y staff.

F I S C A L I M P A C T S
Th e p rop osed rate i nc reas e sh all p rovi d e ap p rop riate c ost recovery and su fficien t accoun tab ility m eth od s for ren d erin g sol id w as te services t o th e p rop ert ies i n U p land . T he p rop osed rate increases wou ld b ecom e effective J u ly 1 , 20 22

A L T E R N A T I V E S
P rovid e altern ative d irection to staff.

AT TAC HM E NT S :

Description
Attachment 1: 2022 Letter requesting solid waste rate adjustment Attachment 2: Notice of P ublic Hearing and rates

CITY OF UPLAND

NOTICE OF PUBLIC HEARING

REGARDING PROPOSED INCREASES TO

SOLID WASTE RATES

Public Hearing Information
NOTICE IS HEREBY GIVEN that the Upland City Council will hold a Public Hearing will be held on June 27, 2022, at 7:00 p.m., or as soon as possible thereafter, at Upland City Hall, located at 460 N. Euclid Avenue, Upland, CA 91786 to consider adopting increases to the rates for collection and handling of trash, recycling, and organic waste services within the City (collectively, “Solid Waste Services”). Said public hearing will be held to consider all oral testimony and written protests to, and the adoption of the proposed rate increases. If the Upland City Council decides to conduct the hearing remotely in the interest of public health and safety pursuant to Assembly Bill (AB) 361 (Chapter 165, Statutes of 2021), information will be posted on the City’s website as soon as possible, and will also be included in the published agenda for the June 27, 2022, Upland City Council meeting.

Proposed Increases
Burrtec Waste Industries provides Solid Waste Services within the City pursuant to an exclusive franchise agreement. The rate structure for monthly Solid Waste Services is based on a service component fee, disposal component fee (tipping fee), and recyclables processing fees (mixed recyclables and organics. The rates for Solid Waste Services for each customer class is determined based on: (i) the size of the container serving the property; (ii) the materials accepted in the container (e.g., trash, recyclables, or organic waste) serving the property; and (iii) the frequency of pickups per week. The rate structure is comprised of service fees and material tipping fees.

The proposed rate increases for Solid Waste Services are necessary for Burrtec to provide mandatory organic waste collection services pursuant to regulations implementing Senate Bill (SB) 1383 (Chapter 395. Statutes of 2016). Residents and businesses must separate organic waste (such as yard waste and food waste) from other trash to be managed at a facility other t han the landfill. To accomplish this, all property owners, residents, and businesses, will be required to subscribe to collection services for trash, recyclables, and organic waste.

To cover the costs needed to provide Solid Waste Services, Burrtec will implement the rate increases in Exhibit A effective July 1, 2022, for Solid Waste Services.

Annual Rate Adjustments
For the fiscal year beginning July 1, 2023, and annually thereafter on July 1 through and including July 1, 2026, the maximum rates provided in Exhibit A shall be automatically adjusted annually based upon the annual percentage change in the Consumer Price Index (CPI), All Urban Consumers

for the San Bernardino-Ontario, CA Metropolitan Area, as determined by the United States Department of Labor Statistics. However, the service component and disposal fee component are each capped by a 4% maximum rate adjustment each year.

How to Protest
The record owner of any parcel upon which the proposed fees or charges are proposed to be imposed or any tenant directly responsible for the payment of solid waste charges (i.e., customer of record) may submit a written protest to the proposed rate increase; however, only one protest will be counted per identified parcel. Any written protest must: (1) state the protest is being submitted in opposition to the proposed rate increase; (2) provide the location of the identified parcel (by assessor’s parcel or street address); and (3) include the name and signature of the property owner or tenant directly responsible for the payment of the solid waste charges submitting the protest. Written protests may be submitted by mail or in person to the City Clerk at City of Upland, 460 N. Euclid Ave., Upland, CA 91786, by June 27, 2022. Oral, telephonic, facsimile, and e-mail protests will not be accepted. Please identify on the front of the envelope for any protest, “2022 Public Hearing on Solid Waste Rate Increases.”

The City Council will consider all written protests and hear and consider all oral comments to the proposed rate increases for Solid Waste Services and the annual rate adjustment at the Public Hearing. Oral comments at the Public Hearing will not qualify as formal protests unless accompanied by a written protest. Upon the conclusion of the Public Hearing, the City Council will consider adoption of the rate increases to the Solid Waste Services and the annual rate adjustment as described herein. If written protests against the proposed Solid Waste Services and annual rate adjustment are not presented by a majority of the property owners of the identified parcels upon which the rates are proposed to be imposed and tenants directly responsible for the payment of the Solid Waste Services, the City Council will be authorized to impose the Solid Waste Services rates and annual rate adjustment as outlined above. If adopted, the proposed rate increases will take effect beginning July 1, 2022. The City is conducting this Proposition 218 majority protest proceeding out of an abundance of caution and without conceding the applicability of Proposition 218 to Solid Waste Services.

Questions
If you have questions regarding how your rates will be affected or this notice, please contact Michelle Madriz, Management Analyst (909) 291-2935

Exhibit A
Solid Waste Rates
Effective July 1, 2022

Current
Rate
Proposed
Rate
Current
Rate
Proposed
Rate
Residential Service Commercial Bin Trash Service
35-gallon trash barrel 22.07$ 24.67$ Size Freq 65-gallon trash barrel 27.40$ 29.64$ 1 1 94.22$ 95.90$ 95-gallon trash barrel 32.72$ 34.83$ 1.5 1 113.12$ 115.36$ Extra 35-gallon trash 10.83$ 10.75$ 2 1 132.19$ 135.04$ Extra 65-gallon trash 12.99$ 12.54$ 2 2 250.97$ 256.56$ Extra 95-gallon trash 15.10$ 14.47$ 2 3 369.71$ 378.04$ Extra pick-up - barrel 19.49$ 20.20$ 2 4 483.71$ 494.71$ Temporary Bins (7 day usage)147.82$ 153.23$ 2 5 601.30$ 615.02$ Temporary Bin - Extra Empty 147.82$ 153.23$ 2 6 689.79$ 705.97$ 3 1 179.25$ 183.37$
Commercial Recycling Bin Service (Extras)3 2 345.04$ 353.15$ Size Freq 3 3 510.85$ 522.96$
2 1 90.92$ 87.75$ 3 4 676.65$ 692.76$
2 2 168.82$ 161.97$ 3 5 842.46$ 862.59$
2 3 246.67$ 236.15$ 3 6 1,008.21$ 1,032.33$
2 4 319.90$ 305.53$ 4 1 226.23$ 231.60$
2 5 396.63$ 378.54$ 4 2 439.08$ 449.72$
2 6 445.09$ 422.20$ 4 3 651.93$ 667.82$
3 1 117.90$ 112.43$ 4 4 864.70$ 885.88$
3 2 222.70$ 211.26$ 4 5 1,077.50$ 1,103.93$
3 3 327.54$ 310.13$ 4 6 1,290.30$ 1,321.99$
3 4 432.37$ 408.99$ 5 1 273.28$ 279.93$
3 5 537.21$ 507.87$ 5 2 533.13$ 546.29$
3 6 641.98$ 606.67$ 5 3 792.96$ 812.66$
4 1 144.78$ 137.01$ 5 4 1,052.80$ 1,079.01$
4 2 276.57$ 260.54$ 5 5 1,312.64$ 1,345.37$
4 3 408.35$ 384.05$ 5 6 1,572.48$ 1,611.73$
4 4 540.07$ 507.51$ 6 1 320.31$ 328.20$
4 5 671.81$ 630.98$ 6 2 627.15$ 642.83$
4 6 803.54$ 754.44$ 6 3 933.94$ 957.41$
6 4 1,240.79$ 1,272.04$
6 5 1,547.63$ 1,586.66$
Commercial/Multi-Family Green Waste Bin Service 6 6 1,854.51$ 1,901.32$ Size Freq
35-gallon Barrel 1 n/a 20.33$ Commercial Barrel Trash Service 35-gallon Barrel 2 n/a 37.39$ 65-gallon trash barrel 27.40$ 29.64$ 35-gallon Barrel 3 n/a 54.46$ 95-gallon trash barrel 32.72$ 34.83$ 35-gallon Barrel 4 n/a 71.53$ Exchange bbl (first free)19.66$ 20.41$ 35-gallon Barrel 5 n/a 88.60$ Extra pick-up - barrel 19.49$ 20.20$ 35-gallon Barrel 6 n/a 105.67$
65-gallon Barrel 1 n/a 23.90$
65-gallon Barrel 2 n/a 44.46$ Commercial Compactor Trash Service 65-gallon Barrel 3 n/a 65.02$ 3 1 339.64$ 339.64$ 65-gallon Barrel 4 n/a 85.58$ 3 2 666.02$ 666.02$ 65-gallon Barrel 5 n/a 106.16$ 3 3 992.37$ 992.37$ 65-gallon Barrel 6 n/a 126.72$ 3 4 1,318.77$ 1,318.77$ 2 1 102.79$ 103.70$ 3 5 1,645.15$ 1,645.15$
2 2 192.12$ 193.83$ 3 6 1,971.52$ 1,971.52$
2 3 281.47$ 283.97$ 4 1 444.71$ 444.71$
2 4 370.81$ 374.11$ 4 2 875.95$ 875.95$
2 5 460.12$ 464.21$ 4 3 1,307.25$ 1,307.25$
2 6 549.48$ 554.35$ 4 4 1,721.33$ 1,721.33$
3 1 135.14$ 136.34$ 4 5 2,148.33$ 2,148.33$
3 2 256.80$ 259.08$ 4 6 2,575.35$ 2,575.35$
3 3 378.46$ 381.83$
3 4 500.12$ 504.57$
3 5 621.83$ 627.36$ Miscellaneous Charges - Commercial 3 6 743.49$ 750.11$
4 1 167.42$ 168.91$ - Barrel Replacement 82.06$ 85.20$ 4 2 321.40$ 324.27$ comml-lost or stolen
4 3 475.39$ 479.62$
4 4 629.38$ 634.99$ - Bin Exchange (first Exchange free)95.24$ 98.90$ 4 5 783.38$ 790.36$ charge does not apply to graffiti or 4 6 937.33$ 945.68$ damaged bins

CITY OF UPLAND
PROPOSITION 218 RATE INCREASE NOTICE
Service Type Service Type
Effective July 1, 2022

CITY OF UPLAND
PROPOSITION 218 RATE INCREASE NOTICE
Effective July 1, 2022
Commercial Food Waste Service - Stand Alone Roll-Off Refuse Size Freq 40 yd compactor - trash 1,009.50$ 1,036.90$
2 1 257.23$ 261.93$ 40 yd roll-off box - trash 815.06$ 836.73$ 2 2 472.97$ 482.01$ 19 yd roll-off box - trash 815.06$ 836.73$ 2 3 675.36$ 688.62$
2 4 877.98$ 895.42$ Roll-Off Recyling Materials Service + Actual Disposal 2 5 1,106.91$ 1,128.80$ Demo box - Inerts Clean 373.51$ 373.51$ 2 6 1,282.75$ 1,308.63$ C&D box 535.53$ 535.53$
35-gallon Barrel 1 n/a 48.55$ Rolloff 40-Y Recyc. (6 tons max)237.55$ 239.64$ 35-gallon Barrel 2 n/a 85.54$ Rolloff 40-Y Comp Recyc. (8 tons max)240.33$ 242.44$ 35-gallon Barrel 3 n/a 118.65$ Rolloff 40-Y Greenwaste (6 tons max)247.85$ 247.85$ 35-gallon Barrel 4 n/a 151.69$ 40 yd roll-off box - clean wood/green 447.75$ 448.50$ 35-gallon Barrel 5 n/a 192.35$ Dry run charge 69.34$ 69.95$ 35-gallon Barrel 6 n/a 217.76$ Daily roll-off rental 33.95$ 34.24$ 65-gallon Barrel 1 60.43$ 61.59$ End Dump - Hourly Rate 169.40$ 170.89$ 65-gallon Barrel 2 109.92$ 112.12$
65-gallon Barrel 3 155.84$ 159.08$ Miscellaneous Charges 65-gallon Barrel 4 201.64$ 205.88$ Pull-out (0-25 ft) - All services N/C N/C 65-gallon Barrel 5 254.53$ 259.86$ Pull-out (26-50 ft) - 1 x Week 18.11$ 18.80$ 65-gallon Barrel 6 293.42$ 299.70$ Pull-out (26-50 ft) - 2 x Week 23.28$ 24.17$ Pull-out (26-50 ft) - 3 x Week 28.11$ 29.19$
Multi-Family Bin Trash Service w/Bulky Item Program Pull-out (26-50 ft) - 4 x Week 33.63$ 34.92$ Size Freq Pull-out (26-50 ft) - 5 x Week 38.80$ 40.29$ 1 1 101.85$ 103.79$ Pull-out (26-50 ft) - 6 x Week 43.97$ 45.66$

1.5 1 124.56$ 127.19$ Pull-out (51-75 ft) - 1 x Week 20.69$ 21.48$ 2 1 147.44$ 150.81$ Pull-out (51-75 ft) - 2 x Week 28.45$ 29.54$ 2 2 281.48$ 288.11$ Pull-out (51-75 ft) - 3 x Week 36.21$ 37.60$ 2 3 415.47$ 425.36$ Pull-out (51-75 ft) - 4 x Week 43.97$ 45.66$ 2 4 544.72$ 557.80$ Pull-out (51-75 ft) - 5 x Week 51.73$ 53.71$ 2 5 677.57$ 693.89$ Pull-out (51-75 ft) - 6 x Week 59.49$ 61.77$ 2 6 781.31$ 800.61$ Pull-out (76-100 ft) - 1 x Week 23.28$ 24.17$ 3 1 202.13$ 207.03$ Pull-out (76-100 ft) - 2 x Week 33.63$ 34.92$ 3 2 390.80$ 400.47$ Pull-out (76-100 ft) - 3 x Week 43.97$ 45.66$ 3 3 579.49$ 593.94$ Pull-out (76-100 ft) - 4 x Week 54.31$ 56.39$ 3 4 768.17$ 787.40$ Pull-out (76-100 ft) - 5 x Week 64.68$ 67.16$ 3 5 956.86$ 980.89$ Pull-out (76-100 ft) - 6 x Week 73.12$ 75.92$ 3 6 1,145.49$ 1,174.29$ Pull-out (101-125 ft) - 1 x Week 25.86$ 26.85$ 4 1 256.74$ 263.15$ Pull-out (101-125 ft) - 2 x Week 38.80$ 40.29$ 4 2 500.09$ 512.81$ Pull-out (101-125 ft) - 3 x Week 51.73$ 53.71$ 4 3 743.45$ 762.46$ Pull-out (101-125 ft) - 4 x Week 64.68$ 67.16$ 4 4 986.73$ 1,012.07$ Pull-out (101-125 ft) - 5 x Week 77.60$ 80.57$ 4 5 1,230.03$ 1,261.66$ Pull-out (101-125 ft) - 6 x Week 90.53$ 94.00$ 4 6 1,473.34$ 1,511.27$ Pull-out (126-150 ft) - 1 x Week 28.45$ 29.54$ 5 1 311.41$ 319.36$ Pull-out (126-150 ft) - 2 x Week 43.97$ 45.66$ 5 2 609.40$ 625.16$ Pull-out (126-150 ft) - 3 x Week 59.49$ 61.77$ 5 3 907.36$ 930.96$ Pull-out (126-150 ft) - 4 x Week 75.02$ 77.90$ 5 4 1,205.33$ 1,236.74$ Pull-out (126-150 ft) - 5 x Week 90.53$ 94.00$ 5 5 1,503.31$ 1,542.54$ Pull-out (126-150 ft) - 6 x Week 106.05$ 110.11$ 5 6 1,801.28$ 1,848.33$ Pull-out (over 150 ft) - 1 x Week 31.04$ 32.23$ 6 1 366.07$ 375.52$ Pull-out (over 150 ft) - 2 x Week 49.13$ 51.01$ 6 2 718.67$ 737.47$ Pull-out (over 150 ft) - 3 x Week 67.25$ 69.83$ 6 3 1,071.22$ 1,099.37$ Pull-out (over 150 ft) - 4 x Week 85.37$ 88.64$ 6 4 1,423.83$ 1,461.32$ Pull-out (over 150 ft) - 5 x Week 103.47$ 107.44$ 6 5 1,776.43$ 1,823.26$ Pull-out (over 150 ft) - 6 x Week 121.57$ 126.23$ 6 6 2,129.07$ 2,185.24$
Miscellaneous Charges Miscellaneous Charges
Extra pick-up - bin 71.02$ 73.62$ Steam Cleaning 55.12$ 57.13$ Extra pick-up - compactor bin 130.74$ 135.54$ Bulky Charge per Item 16.79$ 16.94$ Extra pick-up - G/W bin 42.10$ 42.47$ Bulky Item Trip Charge 44.75$ 45.15$ Extra pick-up - F/W bin 94.52$ 95.62$ Steam Cleaning - Compactor 190.53$ 197.48$ Extra pick-up - F/W barrel 30.09$ 30.37$ Dump and Destroy Fee 113.19$ 117.40$ Tilt-Hopper 45.56$ 47.26$
Temporary bin (7 day usage)147.82$ 153.23$ Contamination Fee:

Temporary bin - extra empty 147.82$ 153.23$ - Commercial Barrels 30.09$ 30.37$ Locking bin 15.74$ 16.31$ - All Bins 71.02$ 73.62$

Actual
Tasa
Tasa
propuesta
Actual
Tasa
Tasa
propuesta
Servicio residencial Comercial – Contenedor de basura
35-galones carrito de basura 22.07$ 24.67$ Tamaño Frecuencia 65-galones carrito de basura 27.40$ 29.64$ 1 1 94.22$ 95.90$ 95-galones carrito de basura 32.72$ 34.83$ 1.5 1 113.12$ 115.36$ adicional carrito de 35-gallones de basura 10.83$ 10.75$ 2 1 132.19$ 135.04$ adicional carrito de 65-gallones de basura 12.99$ 12.54$ 2 2 250.97$ 256.56$ adicional carrito de 95-gallones de basura 15.10$ 14.47$ 2 3 369.71$ 378.04$ adicional recogida de carrito 19.49$ 20.20$ 2 4 483.71$ 494.71$ Contenedores temporales (uso de 7 días)147.82$ 153.23$ 2 5 601.30$ 615.02$ Contenedor temporal - adicional recogida 147.82$ 153.23$ 2 6 689.79$ 705.97$ 3 1 179.25$ 183.37$
Comercial y Multifamiliar – Contenedor de reciclaje (Extra)3 2 345.04$ 353.15$ Tamaño Frecuencia 3 3 510.85$ 522.96$
2 1 90.92$ 87.75$ 3 4 676.65$ 692.76$
2 2 168.82$ 161.97$ 3 5 842.46$ 862.59$
2 3 246.67$ 236.15$ 3 6 1,008.21$ 1,032.33$
2 4 319.90$ 305.53$ 4 1 226.23$ 231.60$
2 5 396.63$ 378.54$ 4 2 439.08$ 449.72$
2 6 445.09$ 422.20$ 4 3 651.93$ 667.82$
3 1 117.90$ 112.43$ 4 4 864.70$ 885.88$
3 2 222.70$ 211.26$ 4 5 1,077.50$ 1,103.93$
3 3 327.54$ 310.13$ 4 6 1,290.30$ 1,321.99$
3 4 432.37$ 408.99$ 5 1 273.28$ 279.93$
3 5 537.21$ 507.87$ 5 2 533.13$ 546.29$
3 6 641.98$ 606.67$ 5 3 792.96$ 812.66$
4 1 144.78$ 137.01$ 5 4 1,052.80$ 1,079.01$
4 2 276.57$ 260.54$ 5 5 1,312.64$ 1,345.37$
4 3 408.35$ 384.05$ 5 6 1,572.48$ 1,611.73$
4 4 540.07$ 507.51$ 6 1 320.31$ 328.20$
4 5 671.81$ 630.98$ 6 2 627.15$ 642.83$
4 6 803.54$ 754.44$ 6 3 933.94$ 957.41$
6 4 1,240.79$ 1,272.04$
6 5 1,547.63$ 1,586.66$
Comercial y Multifamiliar – Contenedor de desechos verdes 6 6 1,854.51$ 1,901.32$ Tamaño Frecuencia
35-galones carrito 1 n/a 20.33$ Comercial –Carrito de basura 35-galones carrito 2 n/a 37.39$ 65-galones carrito de basura 27.40$ 29.64$ 35-galones carrito 3 n/a 54.46$ 95-galones carrito de basura 32.72$ 34.83$ 35-galones carrito 4 n/a 71.53$ Intercambio de carrito (el primero sin cargo)19.66$ 20.41$ 35-galones carrito 5 n/a 88.60$ Recogida adicional de carrito 19.49$ 20.20$ 35-galones carrito 6 n/a 105.67$
65-galones carrito 1 n/a 23.90$
65-galones carrito 2 n/a 44.46$ Compactador – Contenedor de basura 65-galones carrito 3 n/a 65.02$ Tamaño Frecuencia 65-galones carrito 4 n/a 85.58$ 3 1 339.64$ 339.64$ 65-galones carrito 5 n/a 106.16$ 3 2 666.02$ 666.02$ 65-galones carrito 6 n/a 126.72$ 3 3 992.37$ 992.37$ 2 1 102.79$ 103.70$ 3 4 1,318.77$ 1,318.77$
2 2 192.12$ 193.83$ 3 5 1,645.15$ 1,645.15$
2 3 281.47$ 283.97$ 3 6 1,971.52$ 1,971.52$
2 4 370.81$ 374.11$ 4 1 444.71$ 444.71$
2 5 460.12$ 464.21$ 4 2 875.95$ 875.95$
2 6 549.48$ 554.35$ 4 3 1,307.25$ 1,307.25$
3 1 135.14$ 136.34$ 4 4 1,721.33$ 1,721.33$
3 2 256.80$ 259.08$ 4 5 2,148.33$ 2,148.33$
3 3 378.46$ 381.83$ 4 6 2,575.35$ 2,575.35$
3 4 500.12$ 504.57$
3 5 621.83$ 627.36$ Cargos Miscelaneos
3 6 743.49$ 750.11$ Residencial / Comercial
4 1 167.42$ 168.91$
4 2 321.40$ 324.27$ Reemplazo de carritos 82.06$ 85.20$ 4 3 475.39$ 479.62$ commercial - debido a robo o perdida 4 4 629.38$ 634.99$
4 5 783.38$ 790.36$ Contenedores
4 6 937.33$ 945.68$ - Intercambio de contenedor (el primero es sin cargo)95.24$ 98.90$ cargo no aplica por grafiti o carritos daños

CIUDAD DE UPLAND
PROPOSICION 218 AVISO DE INCREMENTO DE TARIFA
Tipo de Servicio Tipo de Servicio
Efectiva Julio 1, 2022

CIUDAD DE UPLAND
PROPOSICION 218 AVISO DE INCREMENTO DE TARIFA
Efectiva Julio 1, 2022
Comercial –Contenedor de residuos de alimentos (tarifas independientes)Servicio Contenedor Tamaño Frecuencia Compactador de 40 yardas - basura 1,009.50$ 1,036.90$ 2 1 257.23$ 261.93$ Caja de 40 yardas - basura 815.06$ 836.73$ 2 2 472.97$ 482.01$ Caja de 19 yardas - basura 815.06$ 836.73$ 2 3 675.36$ 688.62$
2 4 877.98$ 895.42$
2 5 1,106.91$ 1,128.80$
2 6 1,282.75$ 1,308.63$ Servicio Contenedor Materiales de Reciclaje + Costo de Disposicion 35-galones carrito 1 n/a 48.55$ Caja de 10 yardas - Inertes Limpios 373.51$ 373.51$ 35-galones carrito 2 n/a 85.54$ Caja de construcción 535.53$ 535.53$ 35-galones carrito 3 n/a 118.65$ Caja de 40 yardas de reciclaje. (6 ton. máx.)237.55$ 239.64$ 35-galones carrito 4 n/a 151.69$ Compactador de 40 yardas de reciclaje (8 ton. máx.)240.33$ 242.44$ 35-galones carrito 5 n/a 192.35$ Caja de 40 yardas de desechos verdes (6 ton. Máx.)247.85$ 247.85$ 35-galones carrito 6 n/a 217.76$ Caja de 40 yardas de madera limpia / verde 447.75$ 448.50$ 65-galones carrito 1 60.43$ 61.59$ Tarifa de funcionamiento en seco 69.34$ 69.95$ 65-galones carrito 2 109.92$ 112.12$ Caja 40 yardas - tarifa de alquiler diario 33.95$ 34.24$ 65-galones carrito 3 155.84$ 159.08$ Tirado final - Tarifa por Hora 169.40$ 170.89$ 65-galones carrito 4 201.64$ 205.88$
65-galones carrito 5 254.53$ 259.86$
65-galones carrito 6 293.42$ 299.70$
Cargos Miscelaneos
Servicio de empuje (0-25 pies) - Todos los servicios N/C N/C Servicio de empuje (26-50 pies) - 1 x Semana 18.11$ 18.80$ Tipo de Servicio
Actual
Tasa
Tasa
propuesta Servicio de empuje (26-50 pies) - 2 x Semana 23.28$ 24.17$ Servicio de empuje (26-50 pies) - 3 x Semana 28.11$ 29.19$ MultiFamiliar – Contenedor de basura con programa de productos grandes Servicio de empuje (26-50 pies) - 4 x Semana 33.63$ 34.92$ Tamaño Frecuencia Servicio de empuje (26-50 pies) - 5 x Semana 38.80$ 40.29$ 1 1 101.85$ 103.79$ Servicio de empuje (26-50 pies) - 6 x Semana 43.97$ 45.66$

1.5 1 124.56$ 127.19$ Servicio de empuje (51-75 pies) - 1 x Semana 20.69$ 21.48$ 2 1 147.44$ 150.81$ Servicio de empuje (51-75 pies) - 2 x Semana 28.45$ 29.54$ 2 2 281.48$ 288.11$ Servicio de empuje (51-75 pies) - 3 x Semana 36.21$ 37.60$ 2 3 415.47$ 425.36$ Servicio de empuje (51-75 pies) - 4 x Semana 43.97$ 45.66$ 2 4 544.72$ 557.80$ Servicio de empuje (51-75 pies) - 5 x Semana 51.73$ 53.71$ 2 5 677.57$ 693.89$ Servicio de empuje (51-75 pies) - 6 x Semana 59.49$ 61.77$ 2 6 781.31$ 800.61$ Servicio de empuje (76-100 pies) - 1 x Semana 23.28$ 24.17$ 3 1 202.13$ 207.03$ Servicio de empuje (76-100 pies) - 2 x Semana 33.63$ 34.92$ 3 2 390.80$ 400.47$ Servicio de empuje (76-100 pies) - 3 x Semana 43.97$ 45.66$ 3 3 579.49$ 593.94$ Servicio de empuje (76-100 pies) - 4 x Semana 54.31$ 56.39$ 3 4 768.17$ 787.40$ Servicio de empuje (76-100 pies) - 5 x Semana 64.68$ 67.16$ 3 5 956.86$ 980.89$ Servicio de empuje (76-100 pies) - 6 x Semana 73.12$ 75.92$ 3 6 1,145.49$ 1,174.29$ Servicio de empuje (101-125 pies) - 1 x Semana 25.86$ 26.85$ 4 1 256.74$ 263.15$ Servicio de empuje (101-125 pies) - 2 x Semana 38.80$ 40.29$ 4 2 500.09$ 512.81$ Servicio de empuje (101-125 pies) - 3 x Semana 51.73$ 53.71$ 4 3 743.45$ 762.46$ Servicio de empuje (101-125 pies) - 4 x Semana 64.68$ 67.16$ 4 4 986.73$ 1,012.07$ Servicio de empuje (101-125 pies) - 5 x Semana 77.60$ 80.57$ 4 5 1,230.03$ 1,261.66$ Servicio de empuje (101-125 pies) - 6 x Semana 90.53$ 94.00$ 4 6 1,473.34$ 1,511.27$ Servicio de empuje (126-150 pies) - 1 x Semana 28.45$ 29.54$ 5 1 311.41$ 319.36$ Servicio de empuje (126-150 pies) - 2 x Semana 43.97$ 45.66$ 5 2 609.40$ 625.16$ Servicio de empuje (126-150 pies) - 3 x Semana 59.49$ 61.77$ 5 3 907.36$ 930.96$ Servicio de empuje (126-150 pies) - 4 x Semana 75.02$ 77.90$ 5 4 1,205.33$ 1,236.74$ Servicio de empuje (126-150 pies) - 5 x Semana 90.53$ 94.00$ 5 5 1,503.31$ 1,542.54$ Servicio de empuje (126-150 pies) - 6 x Semana 106.05$ 110.11$ 5 6 1,801.28$ 1,848.33$ Servicio de empuje (over 150 pies) - 1 x Semana 31.04$ 32.23$ 6 1 366.07$ 375.52$ Servicio de empuje (over 150 pies) - 2 x Semana 49.13$ 51.01$ 6 2 718.67$ 737.47$ Servicio de empuje (over 150 pies) - 3 x Semana 67.25$ 69.83$ 6 3 1,071.22$ 1,099.37$ Servicio de empuje (over 150 pies) - 4 x Semana 85.37$ 88.64$ 6 4 1,423.83$ 1,461.32$ Servicio de empuje (over 150 pies) - 5 x Semana 103.47$ 107.44$ 6 5 1,776.43$ 1,823.26$ Servicio de empuje (over 150 pies) - 6 x Semana 121.57$ 126.23$ 6 6 2,129.07$ 2,185.24$
Cargos Miscelaneos Cargos Miscelaneos
Recogida adicional - contenedor 71.02$ 73.62$ Limpieza a vapor 55.12$ 57.13$ Recogida adicional - contenedor compactador 130.74$ 135.54$ Carga voluminosa por artículo 16.79$ 16.94$ Recogida adicional - contenedor desecho verde 42.10$ 42.47$ Carga por viaje de artículos voluminosos 44.75$ 45.15$ Recogida adicional - contenedor residuos alimentos 94.52$ 95.62$ Limpieza a vapor - Compactador 190.53$ 197.48$ Recogida adicional - carrito residuos de alimentos 30.09$ 30.37$ Tarifa de descarga y destrucción 113.19$ 117.40$ Tolva inclinable 45.56$ 47.26$
Contenedor temporal (uso de 7 días)147.82$ 153.23$ Tasa de contaminación Contenedor temporal - adicional vacio 147.82$ 153.23$ - Todos los carritos 30.09$ 30.37$ Contenedor de basura con cerradura 15.74$ 16.31$ - Todos los contenedores 71.02$ 73.62$

S T A F F R E P O R T
I T E M N O . 13.D .

D A T E :M ay 9 , 20 22
T O :M A YO R A N D C I T Y C O U N C I L
F R O M : M I C H A E L B L A Y, C I T Y M A N A G E R P R E P A R E D B Y : B R A D E N Y U, P U B L I C W O R K S D I R E C TO R

M I C H E L L E M A D R I Z , M A N A G E M E N T A N A LY S T S U B J E C T :R E C O M M E N D A T I O N O F P R O P O S E D C A N D I D A T E S TO F I L L

U N S C H E D U L E D V A C A N C Y O N T H E S A N A N TO N I O W A T E R

C O M PA N Y B O A R D & W E S T E N D C O N S O L I D A T E D W A T E R C O M PA N Y B O A R D O F D I R E C TO R S.

R E C O M M E N D E D A C T I O N
I t i s recom m en d ed th at t he C it y C ou ncil d is cu ss p rop os ed cand id ates and m ake recom m end ations t o fill th e un sc hed ul ed vacancy t o th e S an A nt oni o Water C om p an y B oard of D irectors and for the West E nd C on solid ated Water C om p any B oard of D irectors.

G O A L S T A T E M E N T
Th e p rop os ed act ion s u p p orts t he C ity’s strateg ic efforts to m ai n t ain reason ab l e wat er rates b y d evelop ing a l ong -term syst em at ic strateg y to d evelop facilities in n eed of im p rovem en t, an d b y im p lem entin g m anag em en t an d finan cial controls.

B A C K G R O U N D
Th e C ity of U p l an d own s cont rolling in terest s i n t w o p rivate m ut ual w ater com p an ies : S an A n ton io Wat er C om p an y (S A W C o) (70 .66 % in terest ); and t h e W est E nd C on solid ated Water C om p an y (W est E n d ) (91 .18 % in terest ). A s a sh areh old er, the C ity is ent it led to vot e in the elections to sel ect the B oard of D irect ors of t h es e com p anies, w h ic h it d oes t h rou g h a p roxy ap p oin ted b y the C ity C ou ncil. B ecause th e C ity h as a controlling in terest in th ese com p anies, th e C i ty C ou ncil’s d irection t o i ts p roxy h as th e p ractical effect of nam in g t h e d irectors for S A W C o and West E n d . T his con trol allow s th e C ity C oun cil to ensure these com p anies take th e C ity's interests in to consid eration in th eir resp ective b u siness d ecisions.

O n M arch 8 , 20 21 , t he C i ty C oun cil ap p roved a slat e of d i rec tors that al so in cl u d ed Tom Th om as to t h e S an A n ton io W ater C om p any B oard of D irectors. M r. Th om as ' s eat w as s et to exp ire in 2 02 5. M r. T hom as was also in th e roll of P resid ent of th e B oard .

E xisting D irecto r T erm E xpirat io n
Ru d y Z un ig a 20 23
W ill E lliott 20 23
M artha G oss 20 23
B ill Velto 20 25
B ob C ab le 20 25
Kati Parker 20 25
Tom T hom as 20 25

O n Feb ru ary 1 1, 2 01 9, t he C it y C ou nc il ap p roved a sl ate of d irect ors th at i n c lu d ed Tom Th om as to th e W est E n d C on s oli d at ed Wat er C om p an y B oard of D irectors. M r. Th om as' term w as set to exp ire in 2 02 3. M r. T hom as was in th e roll of P resid ent of th e B oard .

E xisting D irecto r T erm E xpirat io n
Tom T hom as 20 23
S helly Verrind er 20 23
J anice E lliott 20 25
C arlos G arcia 20 25
S han nan M au st 20 25

I S S U E S /A N A L Y S I S
W ith Tom Th om as' p assin g on Feb ru ary 2 6, 20 22 , his p osition on b oth B oard of D irect ors, as w ell as hi s role as P resi d en t has b een vac ated . A lth oug h t h e S A W C o and Wes t E n d B oard of D irectors are all ow ed to s elec t hi s rep lacem en t t o fi ll p osition for t he rem ain d er of t he term , b oth B oard s have d ecid ed t o all ow th e C it y C ou ncil to p rop os e a can d id ate(s) for t heir B oard ’s con sid eration.

At th e reg ular m eet in g of th e C ity C ou nc il on A p ri l 1 1, 20 22 , th e C oun ci l d irected th e C ity C lerk's offic e to recruit ap p li cat ion s for b ot h B oard s . B y t he ap p li cat ion cl osi ng d ate of M ay 1, 20 22 th e C ity received five ap p lication s.

Th e C it y h as received w ritt en in terest from t he foll ow in g p eop le for t h e S A W C o B oard : B ob B owcock , Rob ert D e L oach , A d h u ri m (A l) Kep u ska an d G M ic hael M il h i ser. T he C i ty also received w ri tt en in terest from t h e follow in g p eop le for t he West E n d B oard : B ob B ow cock an d Kati Parker. Th eir resum es/ap p lications are attached to this rep ort.

F I S C A L I M P A C T S
Th ere is n o fiscal im p act associated with th is action .

A L T E R N A T I V E S
N one.

AT TAC HM E NT S :

Description
Bowcock application
DeL oach application
Kapuska application

M ilhiser application
Parker application