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HomeMy WebLinkAbout13 Res 2021-26 & Ord 1365 - University Park - JCFA and Ord Adoption STAFF REPORT CITY OF PALM DESERT FINANCE DEPARTMENT MEETING DATE: May 27, 2021 PREPARED BY: Veronica Tapia, Senior Management Analyst REQUEST: Adopt Resolution No. 2021-26 A Resolution Approving a Joint Community Facilities Agreement with Coachella Valley Water District and University Park Investor, LLC pertaining to CFD No. 2021-1 (University Park), and Conduct the Second Reading of and Adopt Ordinance No. 1365 related to Community Facilities District No. 2021-1 (University Park) authorizing the levy of a special tax within that district. ________________________________________________________________ Recommendation That the City Council 1) Waive further reading and adopt Resolution No. 2021-26, A Resolution of the City Council of the City of Palm Desert, California, Approving the Form of a Joint Community Facilities Agreement (JCFA) by and among the City of Palm Desert, the Coachella Valley Water District (CVWD), and University Park Investor, LLC (UPI), Pertaining to the City of Palm Desert Community Facilities District No. 2021-1 (University Park); and 2) That City Council, acting in its capacity as the legislative body of City of Palm Desert Community Facilities District No. 2021-1 (University Park), conduct its second reading of, and adopt, Ordinance No. 1365 authorizing the levy of the special tax within the district. Strategic Plan Approval of the attached resolutions supports the Land Use, Housing and Open Space Priority 2 by taking the next steps for a funding mechanism to assist in financing further development of University Park. Executive Summary University Park Investor, LLC (“UPI”) has requested that the City form a new Mello-Roos Community Facilities District (CFD) to be known as City of Palm Desert Community Facilities District No. 2021-1 - University Park (“CFD 2021-1”) and implement a coordinated plan of refunding consisting of the issuance of CFD 2021-1 Bonds and the refunding of the existing City of Palm Desert 2005-1 - University Park (“CFD 2005-1”) Bonds for special tax savings to all the property owners in the CFD. UPI has also May 27, 2021 - Staff Report Adopt Resolution No. 2021-26 Approving JCFA with CVWD 2nd Reading/Adoption of Ordinance No. 1365 CFD 2021-1 Authorizing Levy of Special Tax Page 2 of 3 \\srv-everyone\everyone\Staff Reports - Shared 2\Staff Reports 05-27-2021\4 - City Clerk - 05-27-2021\13 Res 2021-26 & Ord 1365 - University Park - JCFA and Ord Adoption\01 SR Adopt Resolution JCFA and 2nd Ord Reading UPI 5.27.21 rev 5.12.21.docx requested that the City include authorization for the CFD 2021-1 bonds to finance additional facilities required as conditions of its development. Approval of the JCFA and the Ordinance (which was introduced at the May 13 City Council meeting) are both necessary steps to complete the authorization of the CFD 2021-1 authorized facilities, special tax and special tax bonds and to facilitate the public financing needs of the development. Background CFD 2005-1 issued two series of debt in 2006 and 2007 with a combined par amount of $67.915 million. The repayment of that debt is a burden that is carried by the property owners within the boundaries of CFD 2005-1. At the time of issuance, it was anticipated that the properties would be developed with a mix of residential, commercial, office, and open space. Due to timing, market conditions and subsequent market downturn, the property within CFD 2005-1 has been slow to develop following formation of CFD 2005-1, with significantly more property currently remaining undeveloped in CFD 2005-1 than having completed development. UPI presently owns 165.661 acres within CFD 2005-1 and is now actively engaged in the development process. By a Petition submitted to the City in February 2021, UPI formally initiated the process under the Mello-Roos Act to form CFD 2021-1 to issue bonds to finance public facilities costs related to the development of UPI’s property. Since the beginning of 2021, the City Council has endeavored to meet UPI’s request by approving several of the steps required for formation, as well as the desired public improvement financing. Included among the public facilities proposed to be constructed and/or acquired with CFD 2021-1 bond proceeds are certain water and sewer facilities, including related development impact fees, required as a result of the development of the property within CFD 2021-1. These improvements will be owned, operated, and maintained by CVWD. The Mello-Roos Act provides that CFD 2021-1 may finance facilities to be owned or operated by CVWD pursuant to a Joint Community Facilities Agreement approved by the CVWD Board and the City Council. The attached JCFA identifies the water and sewer facilities and fees eligible to be financed by CFD 2021-1 and delegates to UPI the responsibility for constructing such facilities and to CVWD the responsibility for operating those facilities. The JCFA is beneficial to the residents of the City, because it helps to facilitate the development of property in the partially developed University Park area, which will provide essential housing for the area. The City Council, acting in its capacity as legislative body of CFD 2021-1, is also authorized to levy special tax on the land within CFD 2021-1 by adoption of the attached May 27, 2021 - Staff Report Adopt Resolution No. 2021-26 Approving JCFA with CVWD 2"d Reading/Adoption of Ordinance No. 1365 CFD 2021-1 Authorizing Levy of Special Tax Page 3 of 3 Ordinance. Approval of the resolution and ordinance will meet the requirements of the Mello-Roos Act and continue the process for formation of the district and the issuance of bonds. The next step in this process (the final step by City Council) includes the approval of the Refunding Bonds and the financing documents on June 24th. Fiscal Analvsis The costs of formation of CFD 2021-1 and issuance of the Refunding Bonds will be included and are eligible to be paid from proceeds of the Refunding Bonds, if and when issued. If the Refunding Bonds are not issued, any non-contingent costs will be paid by the developer pursuant to its deposit and reimbursement agreement with the City. The savings generated by the refunding will benefit the property owners within CFD 2021- 1 and provide capacity for CFD 2021-1 to finance the required public improvements for the development. LEGAL REVIEW DEPT. REVIEW FINANCIAL ASSISTANT REVIEW CITY MANAGER William L. Strausz Bond Counsel �a+..�?'r%. ?�oau Janet M. Moore Director of Finance L. Todd Hileman, City Manager: �. rodd F-Fi.�evwaw ATTACHMENTS: Resolution No. 2021-26 Ordinance No. 1365 �a,,d?�I. ?�laou �lncti� '/ire�U�te Janet M. Moore Andy Firestine Director of Finance Assistant City Manager Ci �YC'?r1OCiL�"CTfiN A;>i��zovro �� n�tiirn � ccc►vEn o�rnr�:ii �c���'�i i�t ao�-ac� ��.�d�.i.�r,��� mrrT��c nATr. �j` �-' �'-�� ,� nvrs:N�i�vniK .%1mFtk2n � ,ki�i��iii[l� a'KFl Nors:1�(nn� AAS!?NT: � (�� A13STAtN• A//%�� VF.RfF1ED I3Y• ��S Original on File with City Clcrl:'s Office Usrv�everyone�everyone\Slafl Rapotls � S�aree Z�S�ah Rapons OSP-202�\4 - Gry Gerk- 05-2]-eo: nt3 Res zo2�-25 s Ora t365 - Umversny Parp � �GF n ano Om Adopbon101 SR Adopl ResoNtion JCFA antl 2ntl Ord fteatling UPI 52] 21 rev 512 21 tlocx [This page has intentionally been left blank.] -1- RESOLUTION NO. 2021-26 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA, APPROVING THE FORM OF A JOINT COMMUNITY FACILITIES AGREEMENT BY AND AMONG THE CITY OF PALM DESERT, THE COACHELLA VALLEY WATER DISTRICT, AND UNIVERSITY PARK INVESTOR, LLC, PERTAINING TO THE CITY OF PALM DESERT COMMUNITY FACILITIES DISTRICT NO. 2021-1 (UNIVERSITY PARK) RECITALS: WHEREAS, the City Council of the City of Palm Desert (the “City Council”) has initiated proceedings pursuant to the terms and provisions of the Mello-Roos Community Facilities Act of 1982, being Chapter 2.5, Part 1, Division 2, Title 5 of the Government Code of the State of California (the “Act”) to create a community facilities district designated as City of Palm Desert Community Facilities District No. 2021-1 (University Park) (“CFD 2021-1”) for the purpose of providing for the financing of the acquisition, purchase, construction, expansion, improvement, modification, or rehabilitation of certain public facilities, including development impact fees therefor, and to pay and defease a pro rata portion of outstanding Series 2006A Special Tax Bonds issued by, and secured by the special taxes of, existing City of Palm Desert Community Facilities District No. 2005-1 (University Park), and refinance the facilities previously financed thereby; and WHEREAS, the Coachella Valley Water District (the “Water District”) provides water and sewer service to the property within CFD 2021-1; and WHEREAS, included among the public facilities proposed to be constructed and/or acquired are certain water and sewer facilities necessary to meet the increased demands placed upon public infrastructure and the Water District, including development impact fees therefor, as a result of the development of the property within CFD 2021-1 and which will be owned, operated and maintained by the Water District; and WHEREAS, the Act provides that CFD 2021-1 may finance facilities to be owned or operated by an entity other than the City of Palm Desert (the “City”) pursuant to a joint community facilities agreement adopted pursuant to Section 53316.2 of the Act; and WHEREAS, Section 53316.2 of the Act provides that the City Council and the Board of Directors of the Water District (the “Board of Directors”) may enter into a joint community facilities agreement at any time prior to the adoption by the City Council of a resolution authorizing the issuance of bonds by CFD 2021-1 if each legislative body adopts a resolution declaring that such joint community facilities agreement would be beneficial to the residents of the respective public entity governed by such legislative body; and RESOLUTION NO. 2021-26 W:\Staff Reports - Shared 2\Staff Reports 05-27-2021\4 - City Clerk - 05-27-2021\13 Res 2021-26 & Ord 1365 - University Park - JCFA and Ord Adoption\02 City Resolution Approving CVWD JCFA (Palm Desert CFD 2021-1 Univ Park) 5.27.21.docx -2- WHEREAS, the form of a Joint Community Facilities Agreement by and among the City, the Water District, and University Park Investor, LLC, a Delaware limited liability company (the “JCFA”), has been presented to this City Council for its consideration; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF PALM DESERT DOES HEREBY RESOLVE, FIND, DECLARE AND ORDER AS FOLLOWS: Section 1. Recitals. The above recitals are all true and correct. Section 2. Declaration. The City Council hereby declares that the JCFA would be beneficial to the residents of the City. Section 3. Approval of JCFA. The form of JCFA as presented to this City Council and on file with the City Clerk is hereby approved. Each of the Mayor, the Mayor Pro Tem (in the Mayor’s absence), the City Manager, the Assistant City Manager (in the City Manager’s absence), and any deputy of such officers (each, an “Authorized Officer”), acting singly, is hereby authorized and directed, for and in the name and on behalf of the City, to execute and deliver the JCFA substantially in the form on file with the City Clerk and presented to this meeting, with such additions thereto or changes or insertions therein as the Authorized Officer executing the same may approve in consultation with the City’s Bond Counsel (such approval to be conclusively evidenced by such Authorized Officer’s execution and delivery thereof). Section 4. Effective Date. This Resolution shall take effect immediately upon adoption. PASSED, APPROVED and ADOPTED by the City Council of the City of Palm Desert, California, on this 27th day of May, 2021, by the following vote, to wit: AYES: NOES: ABSENT: ABSTAIN: _______________________________ Kathleen Kelly, Mayor ATTEST: ________________________________ M. Gloria Sanchez, Acting City Clerk City of Palm Desert, California P6401-1052\2493802v5.doc RWG DRAFT 5/14/2021 ===================================================================== JOINT COMMUNITY FACILITIES AGREEMENT by and among CITY OF PALM DESERT, COACHELLA VALLEY WATER DISTRICT, AND UNIVERSITY PARK INVESTOR, LLC RELATING TO CITY OF PALM DESERT COMMUNITY FACILITIES DISTRICT NO. 2021-1 ( UNIVERSITY PARK) Dated as of June 8, 2021 ===================================================================== TABLE OF CONTENTS Page P6401-1052\2493802v5.doc i ARTICLE I GENERAL PROVISIONS ................................................................................... 3 Section 1.1 Recitals .......................................................................................... 3 Section 1.2 Definitions..................................................................................... 3 ARTICLE II FORMATION OF CFD AND ISSUANCE OF BONDS ..................................... 6 Section 2.1 Proposed Formation of the CFD ................................................... 6 Section 2.2 Issuance and Sale of Bonds; Tax Certificates for Tax- Exempt Financing ......................................................................... 7 Section 2.3 Bond Proceeds .............................................................................. 8 Section 2.4 Responsibility for CVWD Charges and Acquisition Facilities ........................................................................................ 8 Section 2.5 Responsibility for Debt Service or Special Taxes ...................... 10 Section 2.6 Administration of the CFD ......................................................... 11 ARTICLE III CONSTRUCTION AND ACQUISITION OF ACQUISITION FACILITIES ....................................................................................................... 11 Section 3.1 Construction of Acquisition Facilities by Property Owner .......................................................................................... 11 Section 3.2 Construction By Property Owner................................................ 12 Section 3.3 Public Works Requirements ....................................................... 14 Section 3.4 Inspection; Completion of Construction ..................................... 15 Section 3.5 Liens ............................................................................................ 15 Section 3.6 Acquisition, Acquisition Price; Source of Funds ........................ 15 Section 3.7 Maintenance ................................................................................ 16 Section 3.8 CFD Construction ....................................................................... 17 ARTICLE IV TERM AND TERMINATION ........................................................................... 17 Section 4.1 Effective Date ............................................................................. 17 Section 4.2 Termination ................................................................................. 17 ARTICLE V ADDITIONAL GENERAL PROVISIONS ....................................................... 17 Section 5.1 Record keeping; Inspection of Records ...................................... 17 Section 5.2 Disclosure of Special Tax; Calculation of Special Tax Requirement ......................................................................... 18 Section 5.3 Partial Invalidity.......................................................................... 18 Section 5.4 Amendment and Assignment ...................................................... 19 Section 5.5 Notice .......................................................................................... 19 Section 5.6 Captions ...................................................................................... 20 Section 5.7 Governing Law ........................................................................... 20 Section 5.8 Entire Agreement ........................................................................ 20 Section 5.9 Amendments ............................................................................... 20 Section 5.10 Waiver ......................................................................................... 21 Section 5.11 No Third Party Beneficiaries ...................................................... 21 Section 5.12 Cooperation and Execution of Documents ................................. 21 Section 5.13 Attorneys' Fees ............................................................................ 21 Section 5.14 Exhibits ....................................................................................... 21 Section 5.15 Signatories................................................................................... 21 Section 5.16 Singular and Plural; Gender ........................................................ 22 TABLE OF CONTENTS (cont.) Page P6401-1052\2493802v5.doc -ii- Section 5.17 Execution in Counterparts........................................................... 22 Section 5.18 Venue .......................................................................................... 22 Section 5.19 Construction ................................................................................ 22 Section 5.20 Time is of the Essence ................................................................ 22 Section 5.21 No CVWD Liability .................................................................... 22 Section 5.22 CVWD Charges .......................................................................... 22 Section 5.23 City Representations ................................................................... 23 Section 5.24 Independent Contractor ............................................................... 23 EXHIBIT A-1 CFD Boundary Map EXHIBIT A-2 Description of Property Owned by Property Owner EXHIBIT B Eligible Facilities Description EXHIBIT C Disbursement Request Form - Developer Payments to CVWD EXHIBIT D Disbursement Request Form - Acquisition Facilities EXHIBIT E Form of Developer Tax Certificate EXHIBIT F Form of CVWD Tax Certificate - Developer Payments to CVWD EXHIBIT G Forms of Bills of Sale P6401-1052\2493802v5.doc -1- JOINT COMMUNITY FACILITIES AGREEMENT BY AND AMONG CITY OF PALM DESERT, COACHELLA VALLEY WATER DISTRICT, AND UNIVERSITY PARK INVESTOR, LLC City of Palm Desert Community Facilities District No. 2021-1 (University Park) =============================================== THIS JOINT COMMUNITY FACILITIES AGREEMENT (this “Agreement”) is made and entered into as of the 8th day of June, 2021, by and among the COACHELLA VALLEY WATER DISTRICT, County of Riverside, State of California, a county water district (“CVWD”), the CITY OF PALM DESERT, a municipal corporation (“City”), and UNIVERSITY PARK INVESTOR, LLC, a Delaware limited liability company (the “Property Owner”). R E C I T A L S: A. Property Owner has requested that City form a community facilities district to be known as “City of Palm Desert Community Facilities District No. 2021-1 (University Park)” (the “CFD” or “Community Facilities District”) pursuant to the provisions of the Mello-Roos Community Facilities Act of 1982, as amended (the “Act”). B. On April 22, 2021, the City Council of the City adopted Resolution No. 2021-10, entitled, “A Resolution of Formation to Establish City of Palm Desert Community Facilities District No. 2021-1 (University Park), to Make Findings Under the California Environmental Quality Act with Respect Thereto, to Establish an Appropriations Limit Therefor, to Authorize the Levy of a Special Tax Therein, and to Submit the Establishment of an Appropriations Limit and the Levy of a Special Tax to the Qualified Electors Thereof,” pursuant to which the CFD was established. C. Property Owner is the owner of approximately 165.661 acres of real property (i) located within the boundaries of CVWD and the City, (ii) included in the boundaries of, and currently constituting all of the proposed taxable property within, the CFD, the boundaries of which are depicted in Exhibit “A-1” hereto and incorporated herein by this reference, and (iii) described as set forth in Exhibit “A-2” hereto and incorporated herein by this reference (the “Property”). D. Property Owner intends to develop the Property for residential purposes and has obtained the necessary development approvals to construct approximately one thousand sixty-nine (1,069) residential units. Development of the Property shall be referred to as the “Project.” E. CVWD is the owner of the real property identified on Exhibit “A-1” as Assessor’s Parcels Nos. 694-190-056 and 694-190-058. F. The Project will require the payment, pursuant to the rules and regulations of CVWD, as amended from time to time (“CVWD Rules and Regulations”), of certain CVWD P6401-1052\2493802v5.doc -2- Charges (defined below). An amount equal to all or a portion of the CVWD Charges may be paid directly to CVWD from time to time out of Bond Proceeds (defined below) pursuant to this Agreement. G. The Project will also benefit, in whole or in part, from the construction of certain Acquisition Facilities and Creditable Facilities (defined below and described on Exhibit “B” attached hereto). CVWD and the Property Owner agree that any Acquisition Facilities to be constructed by Property Owner shall be eligible for acquisition by CVWD. Property Owner and City agree that the costs thereof, and the costs of any Developer Contributions to Creditable Facilities, shall be eligible for reimbursement out of Bond Proceeds pursuant to the terms of this Agreement. H. In conjunction with the issuance of building permits for the construction of residential dwelling units within the Project and/or installation of water meters for such residential dwelling units, it may be necessary for Property Owner to provide, or cause to be provided, a deposit to cover CVWD Charges to CVWD (the “Deposits”) before any Bond Proceeds are available to pay for CVWD Charges. I. The Project will also require certain public improvements to be owned, operated or maintained by the City, or to which the City contributes revenue (the “City Improvements”), which will also be eligible for financing through the CFD. The City Improvements expressly are not subject to the terms of this Agreement, and the construction and funding of the City Improvements shall be governed by the terms of the Acquisition Agreement (defined below). J. Pursuant to the request of the Property Owner, the City Council of the City intends to form the CFD pursuant to the Act (defined below) to provide financing of the CVWD Charges, the Acquisition Facilities, the Developer Contributions to Creditable Facilities, and the City Improvements through the levy of special taxes and issuance of bonds by the CFD. K. The City is authorized by Sections 53313.5 and 53345.3 of the Act to pay for or finance, by means of the CFD, the City Improvements, and to enter into a joint community facilities agreement with CVWD in order to finance the CVWD Charges, the Developer Contributions to Creditable Facilities, and the Acquisition Facilities by means of the CFD. This Agreement constitutes a “joint community facilities agreement” within the meaning of Section 53316.2 of the Act by and among CVWD, the City, and Property Owner, pursuant to which the CFD, when formed, will be authorized to finance the City Improvements, the Developer Contributions to Creditable Facilities, the CVWD Charges and to finance the construction and acquisition of Acquisition Facilities. Pursuant to Section 53316.6 of the Act, the Parties hereby agree the responsibility for constructing the Acquisition Facilities is delegated to the Property Owner to the extent set forth herein, and the responsibility for operating the Acquisition Facilities is delegated to CVWD to the extent set forth herein. L. The provision of the City Improvements, the Acquisition Facilities, the Developer Contributions to Creditable Facilities, and the CVWD Charges is necessitated by the Project, and the Parties hereto find and determine that (i) the residents of the CVWD will be benefited by the payment of CVWD Charges and the Developer Contributions to Creditable Facilities, and P6401-1052\2493802v5.doc -3- construction and acquisition of the Acquisition Facilities, and (ii) this Agreement is beneficial to the interests of the residents of the City and the CVWD. ARTICLE I GENERAL PROVISIONS Section 1.1 Recitals. The above recitals are true and correct and are hereby incorporated by this reference. Section 1.2 Definitions. Unless the context clearly otherwise requires, the terms defined in this Section shall, for all purposes of this Agreement, have the meanings herein specified. (a) “Acquisition Agreement” shall mean the Acquisition Agreement between City and Property Owner relating to the CFD, as such agreement may be amended from time to time. (b) “Acquisition Facility” or “Acquisition Facilities” means those sewer and water facilities listed on Exhibit “B” hereto, which are eligible to be constructed by the Property Owner, acquired by CVWD and paid for with Bond Proceeds. (c) “Act” means the Mello-Roos Community Facilities Act of 1982, as amended, commencing with California Government Code Section 53311, et seq. (d) “Acquisition Price” shall have the meaning ascribed to the term in Section 3.6 and consists of that amount to be paid out of Bond Proceeds for an Acquisition Facility. (e) “Actual Costs” with respect to an Acquisition Facility means the substantiated cost of an Acquisition Facility, which cost includes: (i) the actual hard construction costs (evidenced by payments to parties unrelated to the Property Owner) including labor, materials and equipment costs, (ii) the costs incurred in design, engineering and preparation of plans for such Acquisition Facility, (iii) the fees paid to consultants and government agencies in connection with and for inspection, obtaining permits, licenses or other required governmental approvals associated with such Acquisition Facility, including the costs of the Property Owner Engineer, the Field Engineer and the Engineer, (iv) a construction management fee not exceeding 12.5% of the costs described in clause (i) above, (v) professional costs such as engineering, legal, accounting, inspection construction staking, materials testing and similar professional services associated with such Acquisition Facility, and (vi) costs of payment, performance of maintenance bonds, and insurance costs (including the costs of any title insurance) associated with such Acquisition Facility. (f) “Agreement” means this Joint Community Facilities Agreement. (g) “Bond Proceeds” or “Proceeds of the Bonds” shall mean those net project or construction funds generated by the sale of the Bonds. P6401-1052\2493802v5.doc -4- (h) “Bond Resolution” means that resolution, resolution supplement, fiscal agent agreement, indenture of trust or other equivalent document(s) providing for the issuance of the Bonds. (i) “Bonds” shall mean those bonds or other securities issued by, or on behalf of, the CFD, as authorized by the qualified electors within the CFD. (j) “CFD” or “Community Facilities District” means the City of Palm Desert Community Facilities District No. 2021-1 (University Park). (k) “City Improvements” means those certain public improvements to be owned, operated or maintained by the City or to which the City contributes revenue, which will also be eligible for financing through the CFD, including facilities financed pursuant to development impact fees. (l) “Contractors” shall mean any contractors or sub-contractors employed for, or in connection with, the construction of the Acquisition Facilities. (m) “Creditable Facilities” means, collectively, (1) those certain Well Site Facilities, as defined and described in Section 2(c)(i) and Section 9(a), (d), (e) and (f) of the Installation Agreement (Special Water), and (2) those certain Reservoir Facilities, as defined and described in Section 2(c)(iv), Section 5(c), and Section 9(d), (e) and (f) of the Installation Agreement (Special Water). (n) “CVWD Charges” means water connection fees, supplemental water supply charges, water system back-up facilities charges, sewer connection fees, annexation fees, sewer treatment capacity charges, sewer capacity charges, and all components thereof of CVWD imposed upon the Project to pay for the provision of water and sewer services to the Project, including the CVWD water and sewer facilities constructed by such fees or charges. (o) “CVWD Representative” means the CVWD General Manager or any designee thereof. (p) “CVWD Rules and Regulations” means the rules, regulations, procedures and requirements of the CVWD, as amended from time to time. (q) “Deposits” means an amount deposited with CVWD by the Property Owner prior to the disbursement of Bond Proceeds to CVWD for CVWD Charges and which may be eligible for refund by CVWD, or the CFD from Bond Proceeds, to the Property Owner (or its designee) upon the sale of Bonds. (r) “Developer Contributions to Creditable Facilities” means, collectively or individually, as the context may require, the amounts described in (1) Section 2(c)(i) of the Installation Agreement (Special Water), payable by the Developer to CVWD with respect to the Well Site Facilities (as defined in the Installation Agreement (Special Water)) to be constructed by CVWD, in the initial amount of $2,500,000, subject to adjustment as provided in the Installation Agreement (Special Water), and (2) Section 2(c)(iv) of the Installation Agreement (Special Water), payable by the Developer to CVWD with respect to the Reservoir Facilities (as defined in the P6401-1052\2493802v5.doc -5- Installation Agreement (Special Water)) currently under construction by CVWD, in the initial amount of $1,376,022, subject to adjustment as provided in the Installation Agreement (Special Water), (s) “Disbursement Request” means a document, substantially in the form of Exhibit “C” hereto (with respect to Developer Contributions to Creditable Facilities or CVWD Charges) or Exhibit “D” hereto (with respect to Acquisition Facilities), to be used by the Developer in requesting payment of an Acquisition Price. (t) “Discrete Component” means a segment or component of an Acquisition Facility which CVWD has agreed can be separately identified, inspected and completed, and be the subject of a Disbursement Request hereunder, as listed in Exhibit “B” hereto , which may be amended or supplemented pursuant to Section 5.9 of this Agreement. (u) “Engineer” means the engineering firm or in-house personnel used by CVWD to review and determine the documented and eligible Actual Cost (pursuant to the terms and conditions of this Agreement) of an Acquisition Facility to be acquired with Bond Proceeds. (v) “Facilities” means, collectively, the City Improvements, the Acquisition Facilities, the Developer Contributions to Creditable Facilities, and the CVWD Charges. (w) “Facilities Fund” means the fund, account or sub-account of the CFD (regardless of its designation within the Bond Resolution) into which a portion of the Bond Proceeds may be deposited in accordance with the Bond Resolution and Acquisition Agreement to finance the construction and acquisition of the Acquisition Facilities and to pay the Developer Contributions to Creditable Facilities and the CVWD Charges. (x) “Field Engineer” shall have the meaning ascribed to the term in Section 3.1(a). (y) “Installation Agreements” means, collectively, (1) the Installation Agreement (Special Water), and (2) the Installation Agreement (Standard Water and Sewer). (z) “Installation Agreement (Special Water)” means that certain Special Domestic Water System Installation Agreement, dated March 21, 2021, by and between CVWD and the Property Owner and recorded April 1, 2021 as Instrument No. 2021-0203763 of Official Records of the County Recorder’s Office of the Riverside County. (aa) “Installation Agreement (Standard Water and Sewer)” means that certain Standard Domestic Water System and Sanitation System Installation Agreement, dated April 15, 2021, by and between CVWD and the Property Owner and recorded April 22, 2021 as Instrument No. 2021- 0252144 of Official Records of the County Recorder’s Office of the Riverside County. (bb) “Party” or “Parties” shall mean any one or all of the parties to this Agreement, including the CFD which, upon its formation, shall be considered to be a party to this Agreement and bound by its provisions. P6401-1052\2493802v5.doc -6- (cc) “Plans and Specifications” shall mean the plans and specifications for the design and construction of an Acquisition Facility as approved by CVWD, which approval shall not be unreasonably withheld. (dd) “Project” means development of the Property as described in Recital D of this Agreement. (ee) “Property” means the real property described on Exhibit “A-2” hereto. (ff) “Rate and Method” means the Rate and Method of Apportionment of the Special Tax for the CFD authorizing the levy and collection of special taxes pursuant to proceedings undertaken for the formation of the CFD pursuant to the Act. (gg) “State” means the State of California. (hh) “Special Taxes” means the special taxes authorized to be levied and collected within the CFD pursuant to the Rate and Method. (ii) “Substantially Complete” or “Substantial Completion” with respect to an Acquisition Facility means that such Acquisition Facility is substantially complete in accordance with its Plans and Specifications and is available for use by the public for its intended purpose, notwithstanding any final “punch list” items still required to be completed, unless such items are required for the safe operation of such Acquisition Facility, and shall be based upon approval of CVWD’s inspectors, which shall not be unreasonably withheld. ARTICLE II FORMATION OF CFD AND ISSUANCE OF BONDS Section 2.1 Proposed Formation of the CFD. (a) The City, pursuant to the written request of the Property Owner, has initiated proceedings pursuant to the Act for the formation of the CFD, the authorization of the Special Taxes, and the authorization of Bonds on behalf of the CFD. Nothing contained herein shall be deemed to limit the discretion of the City in that regard and the City shall have no liability to CVWD or the Property Owner if the CFD is not formed, if the Special Taxes or Bonds are not authorized by the qualified electors within the CFD, or if Bonds are not issued by the CFD. (b) City hereby agrees that the name “Coachella Valley Water District” or the initials “CVWD” shall not appear in the name of the Community Facilities District or on any property tax billing. Further, City agrees that any property tax billing will not indicate that the billing or any portion thereof is for water and/or sewer facilities and/or fees/charges. (c) CVWD is not directly or indirectly approving or responsible in any way whatsoever for (i) the formation of the Community Facilities District, (ii) the levying of any special tax with respect to the Community Facilities District, or (iii) the issuance of the Bonds. CVWD shall not be responsible in any way whatsoever for any cost or expense for the formation of the Community Facilities District or any matter whatsoever having to do with the same, except as specifically provided herein. P6401-1052\2493802v5.doc -7- Section 2.2 Issuance and Sale of Bonds; Tax Certificates for Tax-Exempt Financing. In the event that the CFD is formed, the City Council of the City, acting as the legislative body of the CFD, may in its sole discretion finance, among other things, the Acquisition Facilities, the CVWD Charges, and the Developer Contributions to Creditable Facilities by issuing the Bonds. The election by the City to finance or not to finance the Acquisition Facilities, the Developer Contributions to Creditable Facilities, and the CVWD Charges and/or the fact that there may not be sufficient Bond Proceeds to finance the Acquisition Facilities or pay the Developer Contributions to Creditable Facilities or the CVWD Charges shall in no way relieve the owner of any Property from its obligation with respect to providing the Acquisition Facilities or paying fees and charges, including without limitation, the Developer Contributions to Creditable Facilities and CVWD Charges with respect to the development of the Property or to otherwise comply with the CVWD’s Rules and Regulations. The purpose of this Agreement is to provide, pursuant to Sections 53316.2 through 53316.6 of the Act, a description of the eligible Facilities and any real or tangible property which is to be purchased, constructed, expanded, or improved hereunder and the allocation and distribution among the Parties of the proceeds of the Special Taxes and any Bonds secured thereby and issued. Bonds issued to finance the CVWD Charges shall be issued on a taxable basis, provided such requirement may be waived in writing in the sole discretion of CVWD with the concurrence of the City, the CFD, and bond counsel to the City and the CFD. If the Developer proposes to utilize proceeds of Bonds issued on a tax-exempt basis to finance any Acquisition Facilities or Developer Contributions to Creditable Facilities (or CVWD Charges, to the extent permitted by CVWD, the City and the CFD), the Developer shall be required to provide to the City and the CFD a Developer Tax Certificate in the form of Exhibit “E” at the time of, and in connection with, the issuance of such Bonds. In addition, the provision by CVWD to the City and the CFD of a CVWD Tax Certificate in the form of Exhibit “F” shall be a condition to the financing with proceeds of tax-exempt Bonds of Developer Contributions to Creditable Facilities (or CVWD Charges, if permitted by CVWD, the City and the CFD), said certificate to be delivered at the time of, and in connection with, the issuance of such Bonds. No tax certificate shall be required for CFD financing from proceeds of taxable bonds. In all instances, the determination as to whether Bonds may be issued on a tax-exempt basis shall be made by bond counsel to the City and the CFD, in its sole discretion in accordance with applicable law. CVWD and the Property Owner acknowledge that the decision of the City Council of the City to form the CFD, to include any particular improvement or facility among the improvements and facilities to be financed by the CFD, or to cause the CFD to issue Bonds is a legislative action, and the City may not enter into an agreement to obligate the City Council to exercise its legislative discretion in a particular manner or for a particular result. This Agreement does not, therefore, in any way create a contractual, legal, or equitable obligation of, or commitment by, the City to approve the formation of the CFD, to cause the CFD to issue Bonds, to construct, or cause the construction of, any Acquisition Facilities, or to finance all or part of the Developer Contributions to Creditable Facilities or the CVWD Charges. Additionally, nothing contained herein shall in any way obligate CVWD to provide the Acquisition Price from funds other than those funds deposited in the Facilities Fund. P6401-1052\2493802v5.doc -8- In the event the CFD is formed and the Special Taxes and Bonds are authorized, the City Council of the City, acting as the legislative body of the CFD, may, in accordance with its adopted policies, adopt the Bond Resolution and issue the Bonds to finance the Facilities. Section 2.3 Bond Proceeds. (a) CVWD shall not have any obligation to service the Property owned by Property Owner, or any portion thereof, unless and until CVWD receives the CVWD Charges allocated to that portion of the Property to be serviced, and such Acquisition Facilities as shall be determined by CVWD are constructed and accepted as shall be required hereunder and the Property Owner complies with the CVWD Rules and Regulations. (b) In conjunction with the recording of the final subdivision maps for the Property, the issuance of building permits for the construction of homes within the Property and/or installation of water meters for such homes, it may be necessary for the Property Owner to make, or cause to be made, Deposits before Bonds are issued. The conveyance of Facilities prior to the issuance of Bonds or the commitment to pay Property Owner for Deposits prior to the issuance of Bonds shall not be construed as a dedication or gift, or a waiver of the payment of the Acquisition Price, or any part thereof. In the event (a) the City elects to finance the CVWD Charges (in whole or in part), and (b) the City determines that Bond Proceeds exist to finance the CVWD Charges (in whole or in part) upon the issuance and sale of the Bonds, the Property Owner may execute and submit a Disbursement Request, in substantially the form attached hereto as Exhibit “C”, to CVWD for approval as to amount and to the CFD requesting disbursement to CVWD of an amount not to exceed the amount on deposit in the Facilities Fund that can be used for CVWD Charges as the same come due. As proceeds of the Bonds are transferred to CVWD to fund CVWD Charges, the Property Owner shall receive a credit, in an amount equal to the amount of such Bond Proceeds so received, against the CVWD Charges required to be paid by the Property Owner in connection with the development of the Property; provided, if prior to the submission of a Disbursement Request, the Property Owner has paid to CWVD a Deposit in the amount of the CVWD Charges subject to such Disbursement Request, then following the Property Owner’s submission of the Disbursement Request and CVWD’s approval of the Disbursement Request, in each instance subject to the provisions of this Agreement, the CFD shall, with Bond Proceeds, issue a refund to the Property Owner in the amount of the Deposit, or such portion thereof, that is available therefor from Bond Proceeds in the timing and manner provided herein and in the Acquisition Agreement. Nothing herein shall supersede the obligation of the Property Owner to pay CVWD Charges to CVWD when due. Section 2.4 Responsibility for CVWD Charges and Acquisition Facilities (a) The Parties hereto acknowledge and agree the final responsibility for the payment of the CVWD Charges on the Property as a condition of receiving water and sewer service to the Property, the payment of the Developer Contributions to Creditable Facilities, or any portion thereof, and the design, construction and dedication of Acquisition Facilities, lies with the Property Owner. (b) Except as otherwise provided in the Installation Agreements, the Property Owner shall have no right vested whatsoever to receive water and/or sewer service at the Property, or P6401-1052\2493802v5.doc -9- applicable portion thereof, until the CVWD Charges for such Property have been tendered in full. The Property Owner hereby authorizes CVWD to use or apply any Deposits provided by the Property Owner pursuant to Section 2.3(b) of this Agreement to finance the CVWD Charges for the Property. A Deposit shall be deposited in CVWD accounts created for other water connection fees, supplemental water supply charges, water system back-up facilities charges, sewer connection fees, annexation fees, sewer treatment capacity charges, or sewer capacity charges, as applicable, and shall be spent in the same manners as such other funds deposited in such accounts. The Property Owner shall not be entitled to interest on any Deposit. Any portion of any Deposit remaining after funding all the CVWD Charges for the Property shall be returned to the Property Owner within ten (10) business days. If additional Deposits are necessary, the Property Owner shall, within ten (10) business days after written demand therefor, deposit cash with CVWD in an amount sufficient to fund such additional CVWD Charges (“Additional Deposits ”). As any Deposits are transferred to CVWD to pay CVWD Charges, the Property Owner shall receive a credit in the amount transferred against the pa yment of CVWD Charges owing to CVWD with respect to the Property. (c) All CVWD Charges shall be paid in such amounts and at such times as required by CVWD’s Rules and Regulations. The Property Owner may elect to make one or more Deposits before Bonds are issued to pay the CVWD Charges to CVWD when due. The Property Owner shall not be entitled to interest on any such Deposits. In the event the Property Owner makes such Deposits as set forth herein, the full amount of such Deposits may be reimbursed to Property Owner by the CFD from Bond Proceeds if and when Bonds are issued, to the extent the Bond Proceeds are sufficient therefor and the Property Owner submits a Disbursement Request for the CVWD Charges advanced by the Deposit, as further provided in Section 2.3(b) above. Notwithstanding the foregoing, if Bond Proceeds deposited in the Facilities Fund are insufficient to fund the entire CVWD Charges applicable to the Property, the Property Owner shall be required to make Deposits with CVWD to offset the shortage in accordance with the terms set forth herein. In the event Bonds are not issued or Bonds are not issued in an amount sufficient to pay the CVWD Charges for the Property, neither the CFD nor CVWD shall have any obligation to refund the Deposit(s), and the CFD and CVWD shall have no liability to reimburse any amounts previously advanced by Property Owner, except (i) from and to the extent of Bond Proceeds deposited in the Facilities Fund, or (ii) to the extent that Deposit(s) made by Property Owner exceed the amount due and owing on the CVWD Charges, in which event CVWD shall refund any overage to the Property Owner. (d) In addition to financing the Developer Contributions to Creditable Facilities and the CVWD Charges described above, the Parties acknowledge that CVWD may require the Property Owner, pursuant to the CVWD Rules and Regulations, to design, construct and dedicate to CVWD Acquisition Facilities as a condition to providing water and sewer service to the Property. The Parties also agree and acknowledge that all responsibility and obligation for the design, construction and dedication of such Acquisition Facilities to CVWD, in accordance with all applicable statutes and the CVWD Rules and Regulations, shall be and remain the responsibility of the Property Owner. (e) CVWD agrees to utilize or apply funds provided to it by the CFD in accordance with the Act and other applicable law, and as set forth herein, for the Developer Contributions to P6401-1052\2493802v5.doc -10- Creditable Facilities, the CVWD Charges, and Acquisition Facilities to be constructed by Property Owner. (f) Property Owner shall indemnify, defend, and hold harmless CVWD, its officers, directors, employees, agents, officials, representatives, successors and assigns (each an “Indemnified Person”, and collectively the “Indemnified Persons”) and each and every one of them from and against all actions, causes of action, liabilities, costs, damages, claims, losses or expenses of every type and description (including without limitation attorneys' fees) to which they may be subjected or put, whether known or unknown, existing or potential, anticipated or unanticipated, by reason of, or resulting or arising from this Agreement, including without limitation, the following: (i) any act or omission of Property Owner under this Agreement, including, but not limited to, any act or omission by Property Owner’s consultants, employees, agents, contractors, subcontractors and anyone directly or indirectly employed by Property Owner, or anyone for whose acts any of them may be liable (collectively, “Representatives”), in connection with the planning, design, construction or installation of the Acquisition Facilities; (ii) the establishment of the Community Facilities District; (iii) the levy of Special Taxes; (iv) the issuance of Bonds; (v) the financing of all or a portion of the Developer Contributions to Creditable Facilities, the CVWD Charges, and Acquisition Facilities from Bond Proceeds; (vi) any disclosure made in connection with the offering and sale of the Bonds or any continuing disclosure made at any time with respect to the Bonds, or any matter related thereto; (vii) any violation or alleged violation, breach or alleged breach by Property Owner or its Representatives of this Agreement; (viii) any Indemnified Person's performance of its obligations under this Agreement; (ix) any property damage, bodily injury or death; (x) the design, engineering, construction and installation of the Acquisition Facilities; and (xi) the nature or physical condition of the Acquisition Facilities or any land conveyed to the CVWD hereunder (including, but not limited to, the presence of any hazardous materials thereon or therein); provided, however, that Property Owner shall not be required to indemnify an Indemnified Person as to actions, causes of action, liabilities, costs, damages, claims, losses or expenses of every type and description (including without limitation attorneys' fees) resulting from gross negligence or willful misconduct of such Indemnified Person. The foregoing indemnity includes without limitation, costs arising from a legal challenge to the CFD and this Agreement. CVWD may make all decisions with respect to its representation in any le gal proceeding covered by this Section 2.4. If the Property Owner fails to do so, CVWD shall have the right, but not the obligation, to defend the same and charge all of the direct or incidental costs of such defense, including any fees and costs, to and recover the same from the Property Owner. Property Owner shall indemnify, defend and hold harmless the City and the CFD pursuant to the Acquisition Agreement. City acknowledges that it is solely responsible for the formation, implementation and administration of the CFD (subject to the Property Owner’s indemnification and hold harmless of the City pursuant to the Acquisition Agreement) and that CVWD involvement is strictly limited to approval of this Agreement, consent to the financing of CVWD Charges with the proceeds of the Special Taxes and any Bonds secured thereby and issued. The Property Owner’s obligations hereunder shall survive termination of this Agreement. Section 2.5 Responsibility for Debt Service or Special Taxes. CVWD shall have no obligation, responsibility, or authority with respect to the issuance and sale of the Bonds, the Bond Proceeds available to finance the construction and acquisition of the Acquisition Facilities and to pay the Developer Contributions to Creditable Facilities and the P6401-1052\2493802v5.doc -11- CVWD Charges, the payment of the principal and interest on the Bonds, or for the levy of the Special Taxes to provide for the payment of principal and interest thereon. The CFD shall have the sole authority and responsibility for all such matters. The Parties hereto specifically agree that the liabilities of the CFD, includ ing liabilities, if any, of the CFD pursuant to the documents providing for the issuance of Bonds, including the Bond Resolution, shall not be or become liabilities of CVWD. Section 2.6 Administration of the CFD. The City shall have the power and duty to provide for the administration of the CFD once it is formed, subject to the terms hereof, the Bond Resolution, and the Acquisition Agreement, including employing and compensating all consultants for such administration and providing for the various other administration duties set forth in this Agreement. It is understood and agreed by Parties hereto that CVWD will not be considered a participant in the proceedings relative to formation of the CFD or the issuance of the Bonds, other than as a Party to this Agreement. ARTICLE III CONSTRUCTION AND ACQUISITION OF ACQUISITION FACILITIES Section 3.1 Construction of Acquisition Facilities by Property Owner. The following provisions of this Article III shall apply solely with respect to those Acquisition Facilities to be constructed by the Property Owner and acquired by CVWD with Bond Proceeds: (a) The Property Owner shall employ, at its sole cost and expense, subject to potential reimbursement, a qualified professional engineering firm (“Property Owner Engineer”) to plan, design and prepare the Plans and Specifications for the Acquisition Facilities in full accordance with CVWD’s design criteria and standards. The Plans and Specifications shall be subject to CVWD approval, which shall not be unreasonably withheld. In the event CVWD disapproves the Plans and Specifications, the Property Owner shall cause the Property Owner Engineer to modify the Plans and Specifications in accordance with the reasons given for disapproval and shall resubmit the revised Plans and Specifications to CVWD for approval or disapproval. The foregoing procedure shall be continued until the Plans and Specifications have been approved by CVWD. CVWD agrees to process any Plans and Specifications for approval with such diligence and in such time as CVWD accords customers similarly situated. The cost and expense of CVWD’s review (including but not limited to, agents, employees and independent contractors) shall be paid by Property Owner to CVWD. Property Owner represents that the Plans and Specifications will conform to all applicable Federal, State and local governmental rules, ordinances, regulations and all applicable environmental laws. (b) A qualified engineering firm (the “Field Engineer”) shall be employed by the Property Owner to provide all field engineering surveys determined to be necessary by the CVWD inspection personnel. The Field Engineer shall promptly furnish to CVWD a complete set of grade sheets listing all locations, offsets, etc., in accordance with good engineering practices, and attendant data and reports resulting from the Field Engineer's engineering surveys and/or proposed P6401-1052\2493802v5.doc -12- facility design changes. CVWD shall have the right, but not the obligation, to review, evaluate and analyze whether such results comply with applicable specifications. (c) The cost of all surveying, compaction testing and report costs associated with such Acquisition Facilities furnished and constructed by any Contractors (as defined in Section 1.2) shall be paid for by the Property Owner, and the costs of such work shall be eligible to be reimbursed from the Facilities Fund. (d) CVWD shall not be responsible for conducting any environmental, archaeological, biological, or cultural studies or any mitigation requirements related to the Acquisition Facilities to be constructed by Property Owner that may be requested by appropriate Federal, State, and/or local agencies. Property Owner shall, at its sole cost and expense, be responsible for compliance with all environmental laws and all requirements of the Federal Endangered Species Act and the California Endangered Species Act, arising out of or in connection with the planning, design, construction and installation of the Acquisition Facilities and for compliance with all conditions and mitigation measures of each consent which must be satisfied for the purpose of the planning, design, construction and installation of the Acquisition Facilities. The term “environmental laws” shall include, without limitation, the California Environmental Quality Act and all other applicable State and Federal environmental laws. Any such work shall be paid for and conducted by, or on behalf of, the Property Owner, and the costs of such work shall be eligible to be reimbursed from the Facilities Fund. Section 3.2 Construction By Property Owner. (a) Following receipt of CVWD’s written approval of the Plans and Specifications, the Property Owner shall, or shall employ a licensed contractor or contractors to construct and complete the Acquisition Facilities at no cost or expense to CVWD and in accordance with the laws, rules and regulations of all governmental bodies and agencies having jurisdiction over the Acquisition Facilities. The Acquisition Facilities shall be installed in strict compliance with the Plans and Specifications. Any deviations from the approved Plans and Specifications must be approved by CVWD, in writing. (b) The Property Owner shall, at its sole cost and expense, apply for and obtain all necessary consents, approvals, permits, authority and entitlements as shall be required for the design, construction and installation of the Acquisition Facilities, if any, from all appropriate governmental authorities. The Property Owner shall directly pay all costs associated with the construction of the Acquisition Facilities, including but not limited to, furnishing of materials, and the Property Owner shall keep CVWD free and harmless from all such costs. (c) The Property Owner shall, at its sole cost and expense, be required to furnish labor and material payment bonds and contract performance bonds in an amount equal to one hundred percent (100%) of the contract price for the Acquisition Facilities and naming the Property Owner, City, CFD and CVWD as obligees unto which the Property Owner, as principal, and the surety are bound, and issued by insurance or surety companies approved by CVWD. All such bonds shall be in a form approved by CVWD. P6401-1052\2493802v5.doc -13- (d) The Property Owner shall deliver to CVWD a Certificate of Insurance evidencing coverage for “builder's risk,” evidence of employer liability insurance with limits of at least One Million Dollars ($1,000,000.00) per occurrence and evidence of commercial general liability insurance (automobile and general liability) with limits of at least Two Million Dollars ($2,000,000.00) per person/per occurrence. The Property Owner shall maintain, keep in force and pay all premiums required to maintain and keep in force all insurance at all times during which such work is in progress. The general liability insurance to be obtained by the Property Owner shall name City, CFD and CVWD as additional insureds. The Property Owner shall further maintain and provide evidence of worker's compensation insurance coverage as provided by law. (e) The Property Owner shall comply with such other reasonable requirements relating to the construction of the Acquisition Facilities which CVWD may impose by written notification delivered to the Property Owner at any time, either prior to the receipt of bids by the Property Owner for the construction of the Acquisition Facilities, or, to the extent required as a result of changes in applicable laws, during the progress of construction thereof. (f) The Property Owner shall, at the time CVWD acquires the Acquisition Facilities, grant to CVWD by appropriate instruments prescribed by CVWD, all easements across private property and/or fee title ownership deeds and/ or public access or rights-of-way which may be necessary for the proper operation and maintenance of the Acquisition Facilities, or any part thereof. The easements and/or fee title shall be in a width and at such locations as shall be acceptable to CVWD. The Property Owner shall ensure that all monetary liens, including deeds of trust and mortgages are subordinated to the easements and reconveyed as to the fee title ownership. (g) Upon completion of the Acquisition Facilities and completion of the final inspection, testing and written assurance thereof by CVWD, the Property Owner shall execute and deliver a bill of sale in the form and content acceptable to CVWD, the forms of which as of the date of this Agreement are attached as Exhibit “G” and can be found at the following website with respect to the various types of Acquisition Facilities: http://www.cvwd.org/209/Appendices. The bill of sale shall convey title of the Acquisition Facilities to CVWD. The Acquisition Facilities shall be transferred to CVWD free of all liens and encumbrances. Nothing contained herein shall require CVWD to accept the Acquisition Facilities, if such facilities are Substantially Complete. CVWD shall only accept such facilities if the Acquisition Facilities are complete, including all punch list items that need to be completed and/or corrected. (h) The Property Owner warrants and represents to CVWD that the Acquisition Facilities shall be free from construction defects (and shall correct or cause to be corrected any such defects) for eighteen (18) months from the date of CVWD final acceptance, as set forth in the applicable Installation Agreement(s). The Property Owner shall provide a Cash Deposit (as defined in Section 5(a) of the Installation Agreement (Special Water) and in Section 4 of the Installation Agreement (Standard Water and Sewer) at the times and for the duration of said 18- month period, as further specified in the applicable Installation Agreement(s). Such defects will be repaired, replaced or corrected by the Property Owner and/or the surety, at no cost to CVWD. The Property Owner and/or the surety shall commence such repair, replacement or correction of any such defects within forty-eight (48) hours after written notice thereof from CVWD to the Property Owner. Notwithstanding the above-provided forty-eight (48) hour period, CVWD shall P6401-1052\2493802v5.doc -14- have the unqualified right to immediately make any emergency repairs necessary as determined by CVWD, in its sole and absolute discretion, to eliminate any threat to the public's health, safety and welfare, at the Property Owner’s sole cost and expense and shall complete such repairs, replacement or correction as soon as practicable. Any warranties, guarantees or other evidences of contingent obligations of third persons with respect to the Acquisition Facilities shall be delivered to CVWD as part of the transfer of title. (i) After the acceptance of the Acquisition Facilities, all permits, plans and operating manuals relating thereto, shall become the sole property of CVWD, at no cost to CVWD, subject to any warranty work. On the acceptance of the Acquisition Facilities by CVWD, the Property Owner shall deliver to CVWD, at no cost to CVWD, all surveys and as-built drawings associated with the construction of the Acquisition Facilities. (j) CVWD shall have the right to review all books and records of Property Owner pertaining to costs and expenses incurred by the Property Owner for the design and construction of the Acquisition Facilities. Section 3.3 Public Works Requirements. In order to ensure that the Acquisition Facilities, completed after formation of the CFD and acquired with Bond Proceeds, will be constructed as if they had been constructed under the direction and supervision, or under the authority of, CVWD, so that they may be acquired by CVWD pursuant to Government Code Section 53313.5, the Property Owner shall require Contractors to pay prevailing wages with respect to all Acquisition Facilities and to otherwise comply with provisions of the Labor Code and the Civil Code as they relate to public works projects (including without limitation Section 9554 of the California Civil Code (to the extent that a subject contract involves an expenditure in an amount subject to, and a Contractor deemed to be a direct contractor under, Section 9550 of the California Civil Code) requiring the filing of a payment bond and naming the City, the CFD, and CVWD as obligees unto which the Property Owner, as principal, and the surety are bound), and as required by the procedures and standards of CVWD with respect to the construction of its public works projects. In addition, the Property Owner shall competitively bid and award all contracts for construction of the Facilities and materials related thereto by means of a competitive bid process acceptable to the CVWD Representative. The Property Owner shall endeavor to obtain at least three bids for each Acquisition Facility by means of such competitive bidding process acceptable to the CVWD Representative. Upon written request of the CVWD Representative, the Property Owner shall provide an analysis of bids for construction and materials for the Acquisition Facilities. The Property Owner shall award each bid to the lowest responsible and responsive bidder. CVWD hereby acknowledges and agrees that (i) it has reviewed the competitive bid process by which the Property Owner has awarded contracts, prior to the date of this Agreement, for the construction of Acquisition Facilities to be owned CVWD with respect to the first phase final map (designated Tract Map No. 37506-1) for the Project, and (ii) the CVWD Representative or its designee has determined that such competitive bid process for such Acquisition Facilities is in substantial compliance with the criteria set forth in the foregoing paragraph. P6401-1052\2493802v5.doc -15- The Property Owner shall provide proof to CVWD, at such intervals and in such form as the CVWD Representative may require, that the foregoing requirements have been satisfied as to all of the Acquisition Facilities, acquired by CVWD, and paid for with Bond Proceeds. Section 3.4 Inspection; Completion of Construction. CVWD shall have the right to inspect, or cause to be inspected, the construction of the Acquisition Facilities constructed by the Property Owner. CVWD’s personnel shall have access to the site of the work at all reasonable times for the purpose of accomplishing such inspection. Any inspection completed by CVWD shall be for the sole use and benefit of CVWD and neither Property Owner, nor any third party shall be entitled to rely thereon for any purpose. CVWD does not undertake or assume any responsibility for or owe a duty to inspect, review or supervise the creation of the Acquisition Facilities. Upon Substantial Completion of the construction of such Acquisition Facilities, the Property Owner shall notify the CVWD Representative in writing that the construction of such Acquisition Facilities has been Substantially Completed. The cost and expense of CVWD’s inspection (including, but not limited to, agents, employees and independent contractors) shall be paid by Property Owner to CVWD. Upon receiving such written notification from the Property Owner that construction of any of the Acquisition Facilities by Property Owner has been completed and final inspection, testing and written assurance thereof has been completed, CVWD shall accept such Acquisition Facilities. Upon receiving such notification, the Property Owner shall forthwith file with the County Recorder of the County of Riverside a Notice of Completion pursuant to the provisions of Section 8182 of the Civil Code. The Property Owner shall furnish to the CVWD Representative a duplicate copy of each such Notice of Completion showing thereon the date of filing with the County Recorder. Section 3.5 Liens. Prior to the acceptance of an Acquisition Facility by CVWD, the Property Owner shall provide to the CVWD Representative such evidence or proof as CVWD shall require that all persons, firms and corporations supplying work, labor, materials, supplies and equipment on behalf of Property Owner for the construction of an Acquisition Facility has been paid, and that there are no claims by or on behalf of any such person, firm or corporation. Section 3.6 Acquisition, Acquisition Price; Source of Funds. Provided the Property Owner has complied with the requirements of this Agreement, CVWD agrees to acquire the Acquisition Facilities from the Property Owner. Nothing contained herein shall require (a) the CFD or CVWD to pay, or the City to cause the CFD to pay, any amount for any Acquisition Facilities (nor shall CVWD be required to request any such payment) or (b) CVWD to provide water and/or sewer service to the Project, until the Acquisition Facilities have been conveyed to CVWD pursuant to the terms contained herein and all applicable CVWD Charges have been paid. The price to be paid by the CFD for the acquisition of such Acquisition Facilities by CVWD (the “Acquisition Price”) shall be the total of the Actual Costs of the Acquisition Facilities (as confirmed and approved by CVWD on the applicable Disbursement Request), subject to and as may be limited by the availability of funds therefor in the Facilities P6401-1052\2493802v5.doc -16- Fund. The Property Owner shall transfer ownership of the Acquisition Facilities to CVWD by grant deed, bill of sale or such other documentation as the CVWD Representative may require. Upon the transfer of ownership of the Acquisition Facilities or any portion thereof from Property Owner to CVWD, CVWD shall be responsible for the maintenance of the Acquisition Facilities or the portion transferred. Only the Property Owner that completes the Acquisition Facility is eligible to receive the Acquisition Prices for such Acquisition Facility. Upon completion of the construction of any Acquisition Facilities by Property Owner, the Property Owner shall deliver to CVWD copies of the contract(s) with the Contractor(s) who have constructed the Acquisition Facilities or other relevant documentation with regard to the payments made to such Contractor(s) for the construction of such Acquisition Facilities, and shall also provide to CVWD copies of all invoices, and purchase orders, canceled checks (or other proof of payment) with respect to all supplies and materials purchased for the construction of such Acquisition Facilities. CVWD shall complete, or require its in-house personnel or any engineering firm retained by CVWD for such purpose (the “Engineer”) to complete, its review and determination of the documented and eligible Actual Cost of the Acquisition Facilities (pursuant to the terms and conditions of this Agreement) within forty-five (45) business days after CVWD’s receipt of the Disbursement Request with the backup documentation attached. The Acquisition Price of any Acquisition Facilities may be determined and paid out of the Facilities Fund prior to transfer of ownership of the Acquisition Facilities to CVWD upon a determination of Substantial Completion of such Acquisition Facility. The Property Owner shall submit a Disbursement Request form to the CFD which must also contain therewith approval of CVWD, which approval shall not be unreasonably withheld, conditioned, or delayed. Notwithstanding the preceding provisions of this section, the sole source of funds for the acquisition by CVWD of the Acquisition Facilities or any portion thereof shall be the Bond Proceeds made available by the CFD pursuant to Section 2.3 above, and the City reserves the right to make an independent and final determination of the Acquisition Price of each Acquisition Facility in accordance with the Acquisition Agreement. The amount of the Acquisition Price actually paid for an Acquisition Facility will be limited to the amount of the available Bond Proceeds deposited and remaining in the Facilities Fund and otherwise not committed for any other Acquisition Facilities, CVWD Charges, or City Improvements (including development impact fees therefor) at the time the applicable Disbursement Request is submitted pursuant to Section 2.3. If for any reason the proceedings for the formation of the CFD are not completed or the Bonds are not sold, no Acquisition Price shall be required to be paid in connection with the offer and dedication of any Acquisition Facilities by the Property Owner to CVWD. In such event, the Property Owner shall complete the design and construction and offer to CVWD ownership of those Acquisition Facilities as are required to be constructed by the Property Owner as a condition to service for the Property or by any other agreement between Property Owner and CVWD. Section 3.7 Maintenance. Prior to the transfer of ownership of an Acquisition Facility by the Property Owner to CVWD, as provided in Section 3.5 hereof, the Property Owner shall be responsible for the maintenance thereof and shall maintain and transfer such Acquisition Facility to CVWD in as good condition as the Acquisition Facility was in at the time the Property Owner notified the CVWD P6401-1052\2493802v5.doc -17- Representative pursuant to Section 3.3 hereof that construction of same had been Substantially Completed in accordance with the Plans and Specifications, excepting wear and tear determined to be reasonable and customary in the sole discretion of CVWD. The Parties agree that, except as to the payment bond provisions set forth in Section 3.2 hereof, the construction and acquisition of the Acquisition Facilities to be constructed by Property Owner is a matter between the Property Owner and CVWD only, and that the City and the CFD shall have no responsibility for on-site inspection or monitoring or for certifying that the provisions of Article III of this Agreement be satisfied. Section 3.8 CFD Construction. In the event the City and/ or Community Facilities District plans and/or constructs the Acquisition Facilities (or any portion thereof), the terms and conditions of Article IV shall apply to the City and/or Community Facilities District standing in place and stead of Property Owner. ARTICLE IV TERM AND TERMINATION Section 4.1 Effective Date. This Agreement shall become effective and of full force and effect as of the date set forth in the first paragraph of this Agreement (“Effective Date”) provided it is approved by the Property Owner, the City Council of the City, and the governing board of CVWD, to be confirmed by the execution hereof by the authorized representatives of the Parties hereto. Section 4.2 Termination. In the event that the formation proceedings for the CFD are not completed or the CFD has not sold an initial series of Bonds prior to twelve (12) months after the Effective Date of this Agreement, this Agreement shall automatically terminate and be of no further force and effect; provided, if an initial series of Bonds has been issued within twelve (12) months after the Effective Date of this Agreement, this Agreement shall not automatically terminate and shall continue in full force and effect, regardless of whether or not the Bond Proceeds of that initial series of Bonds are sufficient to fund any Acquisition Facilities, Developer Contributions to Creditable Facilities, or CVWD Charges, because additional series of Bonds are contemplated to be issued by the CFD to fund such costs. ARTICLE V ADDITIONAL GENERAL PROVISIONS Section 5.1 Record keeping; Inspection of Records. CVWD hereby agrees to keep and maintain full and accurate records of all amounts, and investment earnings, if any, paid to CVWD for the CVWD Charges, and the City hereby agrees to keep and maintain full and accurate records of all amounts, and investment earnings, if any, expended from the Facilities Fund. Each Party further agrees to make such records available to any other Party hereto, including Property Owner, during normal business hours upon reasonable P6401-1052\2493802v5.doc -18- prior notice. All such records shall be kept and maintained by the appropriate Party as provided by applicable law and their respective policies. Each of CVWD and Property Owner agree that they will cooperate with the CFD and the City in providing documentation, reports or other data reasonably required and requested by the City or the CFD in meeting the reporting requirements of the CFD under the Local Agency Special Tax and Bond Accountability Act (including but not limited to California Government Code Sections 50075.1 et seq.), enacted by California Senate Bill (SB) No. 165, Chapter 535 of the Statutes of 2000. Section 5.2 Disclosure of Special Tax; Calculation of Special Tax Requirement. (a) Delivery of Notice. From and after the date of this Agreement, the Property Owner and its successors and assigns shall give a “Notice of Special Tax” (as defined in Section 5.2(b) below) to each prospective purchaser of a parcel in the CFD and shall deliver a fully executed copy of each notice to City. Property Owner and its successor and assigns shall (i) maintain records of each Notice of Special Tax for a period of five (5) years, and (ii) shall provide copies of each notice to City promptly following the close of escrow for the sale of each parcel for which such notice was given. Property Owner and its successors and assigns shall include the Notice of Special Tax in all Property Owner’s and its successors and assigns' applications for Final Subdivision Reports required by the Department of Real Estate (“DRE”) which are filed after the Effective Date of this Agreement. Property Owner shall require, as a condition precedent to close an escrow for t he sale of real property to a developer acquiring lots (a “Residential Developer”) that such Residential Developer shall (i) maintain records of each Notice of Special Tax for a period of five (5) years, (ii) provide copies of each notice to City promptly following the close of escrow for the sale of each parcel for which such notice was given, and (iii) include the Notice of Special Tax in all of such Residential Developer's applications for Final Subdivision Reports required by DRE. (b) Notice of Special Tax. With respect to any parcel, the term “Notice of Special Tax” means a notice in the form prescribed by California Government Code Section 53341.5 which is calculated to disclose to the purchaser thereof (i) that the property being purchased is subject to the special tax of the CFD, (ii) the land use classification of such property; (iii) the maximum annual amount of the special tax and the number of years for which it will be levied; and (iv) the types of facilities or services to be paid for or with the proceeds of the special tax. (c) Notice to Subsequent Purchasers. Upon formation of the CFD it is expected that the City will file with the Riverside County Recorder a notice of special tax lien that gives notice of the existence of the CFD and the levy of the special tax on property within the CFD for the benefit of subsequent property owners, pursuant to requirements of Section of 53328.3 of the Act and Section 3114.5 of the Streets and Highways Code. Section 5.3 Partial Invalidity. If any part of this Agreement is held to be illegal or unenforceable by a court of competent jurisdiction, the remainder of this Agreement shall be given effect to the fullest extent reasonably possible. P6401-1052\2493802v5.doc -19- Section 5.4 Amendment and Assignment. The Property Owner shall not have any right to assign or otherwise transfer this Agreement, either voluntarily or by operation of law, in whole or in part, without the prior written consent of CVWD and City in each instance, which consent may be withheld in CVWD’s and City’s sole and absolute discretion. An approval of an assignment shall be evidenced by a written instrument in a form satisfactory to CVWD and City, executed by the assignor and assignee, under which the assignee shall again, in writing, for the benefit of CVWD and City, agree to perform and to abide by all of the terms, covenants and conditions of this Agreement to be done, kept and performed by assignor. Regardless of CVWD’s and City’s consent, no assignment shall release an assignor of assignor's obligations hereunder. The rights and obligations of the Property Owner hereunder shall inure to and be binding upon its successors and assigns. Section 5.5 Notice. Any notice, payment or instrument required or permitted by this Agreement must be in writing, and sent to the addresses of each Party set forth below. Notice will be sufficiently given or delivered to a Party for all purposes as follows: (a) when personally delivered to the recipient, notice is effective on delivery; (b) when mailed certified mail, return receipt requested, postage prepaid, notice is effective on receipt, if a return receipt confirms its delivery; (c) when delivered by an overnight delivery service such as Federal Express, charges prepaid or charged to the sender's account, notice is effective on delivery, if delivery is confirmed by the delivery service; (d) when delivered by facsimile or email transmission, notice is effective on receipt, provided that the facsimile machine or email provides the sender a notice that indicates that the transmission was successful and that a copy is mailed by first class mail of the facsimile or email transmission date. Addresses for purpose of giving notice are as follows: City: City of Palm Desert 73-510 Fred Waring Drive Palm Desert, CA 92260 Facsimile: (760) 776-6306 Attention: City Manager CVWD: Coachella Valley Water District Highway 111 and Avenue 52 P.O. Box 1058 Coachella Valley, CA 92236 Facsimile: (760) 398-3711 Email: jbarrett@cvwd.org Attention: General Manager P6401-1052\2493802v5.doc -20- Property Owner: University Park Investor, LLC 801 San Ramon Valley Blvd., Suite F Danville, CA 94526 Email: ravi@missionvalleyhomes.com Attention: Ravi Nandwana with a copy to: University Park Investor, LLC 4400 MacArthur Boulevard, Suite 700 Newport Beach, CA 92660 Email: rory.ingels@blackrock.com Attention: Rory Ingels Each Party can change its address for delivery of notice by delivering written notice of such change or address to the other parties within ten (10) calendar days prior to such change. Section 5.6 Captions. The captions to Sections used herein are for convenience purposes only and are not part of this Agreement. Section 5.7 Governing Law. This Agreement shall be governed by, and construed in accordance with, the laws of the State of California applicable to contracts made and performed in such State. Section 5.8 Entire Agreement. This Agreement contains the entire agreement between the Parties with respect to the matters provided for herein and supersedes all prior agreements and negotiations between the Parties with respect to the subject matter of this Agreement, except as provided in the paragraph below or as may be provided elsewhere in this Agreement. Property Owner and CVWD have previously entered into the Installation Agreements, which governs the terms of certain or all of the Acquisition Facilities, the Developer Contributions to Creditable Facilities, and CVWD Charges to be funded by amounts on deposit in the Facilities Fund and to be constructed and/or transferred to CVWD. Nothing contained in this Agreement shall be deemed or interpreted to affect, modify, or supersede in any way the terms of the Installation Agreements. In the event of a conflict between this Agreement and the Installation Agreements, the terms in the Installation Agreements shall control. Section 5.9 Amendments. This Agreement may be amended or modified only in writing executed by the authorized representative(s) of each of the Parties hereto. P6401-1052\2493802v5.doc -21- Section 5.10 Waiver. The failure of any Party hereto to insist on compliance within any of the terms, covenants or conditions of this Agreement by any other Party hereto, shall not be deemed a waiver of such terms, covenants or conditions of this Agreement by such other Party, nor shall any waiver constitute a relinquishment of any other right or power for all or any other times. Section 5.11 No Third Party Beneficiaries. No person or entity other than the CFD shall be deemed to be a third party beneficiary hereof; and nothing in this Agreement (either express or implied) is intended to confer upon any person or entity, other than the City, the CFD, CVWD and the Property Owner (and their respective successors and assigns, exclusive of individual homebuyers), any rights, remedies, obligations or liabilities under or by reason of this Agreement. Section 5.12 Cooperation and Execution of Documents. The Parties hereto agree to complete and execute any further or additional documents which may be reasonably necessary to complete or further the terms of this Agreement. Section 5.13 Attorneys' Fees. In the event of the bringing of any action or suit by any Party against any other Party arising out of this Agreement, the Party in whose favor final judgment shall be entered shall be entitled to recover from the losing Party all costs and expenses of suit, including reasonable attorneys' fees. Section 5.14 Exhibits. The following exhibits attached hereto are incorporated into this Agreement by reference. Exhibit Description “A-1” CFD Boundary Map “A-2” Description of Property Owned by Property Owner “B” Eligible Facilities Description “C” Disbursement Request Form - Developer Payments to CVWD “D” Disbursement Request Form - Authorized Facilities “E” Form of Developer Tax Certificate “F” Form of CVWD Tax Certificate - Developer Payments to CVWD “G” Forms of Bills of Sale Section 5.15 Signatories. The signatories hereto represent that they have been appropriately authorized to enter into this Agreement on behalf of the party for whom they sign. P6401-1052\2493802v5.doc -22- Section 5.16 Singular and Plural; Gender. As used herein, the singular of any word includes the plural, and terms in the masculine gender shall include the feminine. Section 5.17 Execution in Counterparts. This Agreement may be executed in counterparts, each of which shall be deemed an original. Section 5.18 Venue. Any legal action or proceeding concerning this Agreement shall be filed and prosecuted in the appropriate California state court in the County of Riverside, California. Each Party irrevocably consents to the personal jurisdiction of that court. The Parties each hereby expressly waive to the maximum legal extent the benefit of any provision of federal or state law or judicial decision providing for the filing, removal or change of venue to any other court or jurisdiction, including, without implied limitation, federal district court, due to any diversity of citizenship between the Parties. Section 5.19 Construction. The language in all parts of this Agreement shall in all cases be construed as a whole according to its fair meaning and not strictly for or against any Party. All provisions and any variations thereof shall be deemed to refer to the masculine, feminine, neuter, singular or plural, as the identification of the person or persons, firm or firms, corporation or corporations may require. This Agreement is the product of mutual negotiation and drafting efforts. Accordingly, the rule of construction that ambiguities in a document are to be construed against the drafter of that document shall have no application to the interpretation or enforcement of this Agreement. Section 5.20 Time is of the Essence. Time is of the essence of this Agreement and each and every provision thereof. Section 5.21 No CVWD Liability. The City, CVWD and Property Owner acknowledge and agree that CVWD shall have no responsibility or liability to City or the Property Owner for the establishment of the Community Facilities District, the levy of the special taxes, the issuance of the Bonds, the financing of the CVWD Charges, any disclosure made in connection with the offering and sale of the Bonds or any continuing disclosures made at any time with respect to the Bonds or any matters relating thereto. Section 5.22 CVWD Charges. Nothing herein shall be construed to allow Property Owner to pay the CVWD Charges in effect at the effective date of this Agreement. The Property Owner shall pay the CVWD Charges in effect at the time the Property Owner pays the CVWD Charges or the Deposit (with respect to the portion of the Property covered by the Deposit). P6401-1052\2493802v5.doc -23- Section 5.23 City Representations. City hereby represents to CVWD that the following are true and correct: (a) The Act exempts any requirement that facilities for the City will be financed by a larger share of the proceeds of the Special Taxes and Bonds than the Developer Contributions to Creditable Facilities, the CVWD Charges, and the Acquisition Facilities. (b) The CVWD Charges qualify for financing pursuant to the Act. Section 5.24 Independent Contractor. In performing this Agreement, the Property Owner is an independent contractor and not the agent of CVWD or City. Except as provided herein, CVWD and City shall have no responsibility to pay any contractor or supplier of the Property Owner. It is not intended by the Parties to this Agreement to create a partnership or joint venture among them and this Agreement shall not otherwise be construed. [signature page follows] P6401-1052\2493802v5.doc -24- IN WITNESS WHEREOF, the parties hereto have executed this Joint Community Facilities Agreement as of the day and year written alongside their signature below. Date: CITY OF PALM DESERT, a municipal corporation By: Name: Its: City Manager Date: COACHELLA VALLEY WATER DISTRICT, a county water district By: Name: Its: General Manager of the Coachella Valley Water District Date: UNIVERSITY PARK INVESTOR, LLC, a Delaware limited liability company By: Name: Title: P6401-1052\2493802v5.doc A-1 EXHIBIT “A-1” CFD BOUNDARY MAP [see attached] NfAP �� �R�P��ED B�UNDARI�� �F SHE�T 1 �F � ��IVIMU�VITY F�4�IL�TIE� [31�TRI�T N�. 2��'1-1 �__� � � � �---_. , - � � --� ;----------- f "� i j ..4_� J.� i-- � r-r i ` �----- i � �; i �.__.__.� ----- r ��� ; L�9end j �� l; � �. �---•-- ti � j_- __ j CkTY DF PALM C��SERT �Uh�1VER�I�Y �AF��C� CIT'Y �F PAL�11 DESERT C�UNTY �� F�I1IER�IQE �TATE C�F CALIF�RNI�► ���� ��4RNER �tD I� 0 FILEa IN �HE QFF��E �F THE C�TY GLERK THIS ��� DAY �F �� �t'J'� , 20 �.� �# I HEREBY CERTIFY THA7 THE INITHIN NlAP SHQVIfIMG PRDPQSEp BDUNDAR�ES QF CQMMUNITY FAGILITl�S Q�STRICT NQ. 2��1-9 (lJNI11ERSiTY RARK], CITY QF PALfVI �- E �ESERT, CQUNTY OF F21VER51DE, STATE aF CALIF�RNIA, 1NA5 APPRQV�R BY THE CITY CQUNCfL OF THE ClTY OF P,4LM DES�RTATA REGIJLAR NiEETING � THEREaF, NELQ ❑N THE � � � , DAY O�' �Q.�`Ch �, 2Q�,I BY IT5 RESflL�JTIaN NO. �4 �.1 -- �� . FILE❑ �"H!S � dAY �� � rl � , 2Q�-I, AT THE N�UR �F �".' �� Q'CL[]CK �.M, IN ��0�[ d'�4 OF�APS �F A55ESSIUIENT ANo C�IVIiVIUNITY FACILITlES C]ISTRICTS AT PAGE(S� ��"i . IN THE �FFICE �F THE C011NTY RECDR�ER, C�UMTY QF RlVERS�DE, STATE Q� CAL�FaRN�A. PETER ALDANA, ASSESS�R-C4UNTY C�ERK-REGDRC}ER ,�u�iE ��v Le�end � Praposed GFD Baundary � ! Map Reference Number zvne 1 Zone � I`/�i �one � w � 4 4 J � � � � � � � � 4 � U PARK DR � . �� �� CaTY �.ERK CITY �� PA�M DESERT r��. gY aEPUTY C�UNTY REC�RdER C�UNTY C?F RIVERSIaE STATE DF CALIFCJRNIA �� '�]� T1-!E LfNES ANE] ❑IMENSIQNS QF EA�H L�T DR PARCEL SH�VI�N ON TH15 ❑IAGRAM SHA�L 6E Ti-�QSE LINES AND DIMEN5IQIV� AS SH�VIIN �N THE RIVERS#CiE C4UNTYASS�SS�R'S MAPS FflR �HOSE I�ARGELS LISTED, TH� RIV�R5IDE C�UNTYA55E5SDR'S fVIAPS SHALL GQVEFiN F�R ALL ❑ETAILS CDNCERNIN� THE L�MIES AN� D�MEN51�N5 DF SUCH L�fiS OR PARCELS. MAP REFERENCE NUNfBER -- � � — — � -- � - � - 6 �- �,ssEssa��s , PARGEL I�UMB�.R � - r ��4� � �4-l�10 -- � G94-19D-D31 s�4-� so-a�� �� 694-19�-a3� 69�-19�-Q38 fi9�- � 9fl-053 �s�- � �o-o�� � MAP REFEREI�CE ASSESSQR'S NU�JIBER PARCEL NUN9BER � ���- � ��-��� �--- 9 - i fi94-19a-058 - I� - � a j s�=� �a-a�o - - - ' 11 � ��A�-1 ��-072 - 12 £94-19Q-�79 i 13 594-� ��-013 � - � - — .� I � � ; ssa-2oo-0� 4 � V11ILL��N 273�8 VIA INDUST�IA, SUITE #2�0 TENIEGULA. GA �25�0 (951 } 587-35�� �����«���� P6401-1052\2493802v5.doc A-2-1 EXHIBIT “A-2” DESCRIPTION OF PROPERTY OWNED BY PROPERTY OWNER The property owned by the Property Owner within the boundaries of the CFD is situated in the State of California, County of Riverside and described as follows: PARCEL A: THAT CERTAIN PORTION OF LAND SITUATED IN THE CITY OF PALM DESERT, BEING ALL OF PARCEL 9 AND PARCEL 15 OF PARCEL MAP NO. 31730, AS SHOWN BY MAP ON FILE IN BOOK 211, PAGES 63 THROUGH 75 OF PARCEL MAPS, RECORDS OF RIVERSIDE COUNTY, CALIFORNIA. TOGETHER WITH ALL OF THAT LAND DESCRIBED IN A GRANT DEED TO THE PALM DESERT REDEVELOPMENT AGENCY RECORDED DECEMBER 9, 2002 AS INSTRUMENT NO. 02-734132 OF OFFICIAL RECORDS OF RIVERSIDE COUNTY, CALIFORNIA. EXCEPTING THEREFROM, THE FOLLOWING DESCRIBED PORTION OF LAND: THAT CERTAIN PORTION OF LAND SITUATED IN THE CITY OF PALM DESERT, BEING PORTIONS OF PARCELS 1, 2, 3 AND 5 AND ALL OF PARCEL 4 OF CERTIFICATE OF COMPLIANCE FOR PARCEL MAP WAIVER, P.M.W. NO. 99-11, RECORDED JANUARY 4, 2000 AS INSTRUMENT NO. 2000-002896 OF OFFICIAL RECORDS, MORE PARTICULARLY DESCRIBED AS FOLLOWS: COMMENCING AT THE CENTERLINE INTERSECTION OF FRANK SINATRA DRIVE AND PORTOLA AVENUE, BEING THE SOUTHWEST CORNER OF SECTION 33, TOWNSHIP 4 SOUTH, RANGE 6 EAST, SAN BERNARDINO BASE AND MERIDIAN; THENCE NORTH 00°05'32" WEST 3,664.39 FEET ALONG THE CENTERLINE OF PORTOLA AVENUE, SAID LINE ALSO BEING THE WEST LINE OF SAID SECTION 33, TO THE TRUE POINT OF BEGINNING; THENCE LEAVING SAID CENTERLINE AND WEST LINE, NORTH 89°54'28" EAST 311.19 FEET TO THE BEGINNING OF A TANG ENT CURVE CONCAVE NORTHERLY AND HAVING A RADIUS OF 1,013.00 FEET; THENCE ALONG SAID CURVE EASTERLY 267.13 FEET THROUGH A CENTRAL ANGLE OF 15°06'33"; THENCE RADIALLY FROM SAID CURVE SOUTH 15°12'05" EAST 95.73 FEET; THENCE SOUTH 32°01'27" EAST 138.08 FEET; THENCE SOUTH 37°44'05" EAST 373.26 FEET TO THE BEGINNING OF A TANGENT CURVE CONCAVE NORTHEASTERLY AND HAVING A RADIUS OF 536.00 FEET; THENCE ALONG SAID CURVE SOUTHEASTERLY 291.92 FEET THROUGH A CENTRAL ANGLE OF 31°12'18"; THENCE TANGENT FROM SAID CURVE SOUTH 68°56'23" EAST 69.74 FEET TO A POINT ON A NON-TANGENT CURVE CONCAVE NORTHEASTERLY AND HAVING A RADIUS OF 534.00 FEET, A RADIAL LINE OF SAID CURVE FROM SAID POINT BEARS NORTH 80°00'56" EAST; THENCE ALONG SAID CURVE SOUTHEASTERLY 451.08 FEET THROUGH A CENTRAL ANGLE OF 48°23'57" TO A POINT OF REVERSE CURVATURE WITH A CURVE CONCAVE SOUTHWESTERLY AND HAVING A RADIUS OF 866 FEET, A RADIAL LINE OF SAID CURVE FROM SAID POINT BEARS SOUTH 31°36'59" WEST; THENCE ALONG P6401-1052\2493802v5.doc A-2-2 SAID CURVE SOUTHEASTERLY 93.89 FEET THROUGH A CENTRAL ANGLE OF 06°12'44"; THENCE NON-TANGENT FROM SAID CURVE SOUTH 41°55'34" EAST 49.31 FEET; THENCE SOUTH 39°47'30" EAST 498.31 FEET; THENCE SOUTH 46°52'11" EAST 259.34 FEET TO THE BEGINNING OF A TANGENT CURVE CONCAVE SOUTHWESTERLY AND HAVING A RADIUS OF 866.00 FEET; THENCE ALONG SAID CURVE SOUTHEASTERLY 224.43 FEET THROUGH A CENTRAL ANGLE OF 14°50'55" TO A POINT OF REVERSE CURVATURE WITH A CURVE CONCAVE NORTHEASTERLY AND HAVING A RADIUS OF 434 FEET, A RADIAL LINE OF SAID CURVE FROM SAID POINT BEARS NORTH 57°58'44" EAST; THENCE ALONG SAID CURVE SOUTHEASTERLY 326.73 FEET THROUGH A CENTRAL ANGLE OF 43°08'03" TO A POINT OF REVERSE CURVATURE WITH A CURVE CONCAVE SOUTHWESTERLY AND HAVING A RADIUS OF 50.00 FEET, A RADIAL LINE OF SAID CURVE FROM SAID POINT BEARS SOUTH 14°50'41" WEST; THENCE ALONG SAID CURVE SOUTHEASTERLY 54.34 FEET THROUGH A CENTRAL ANGLE OF 62°16'13" TO A POINT OF REVERSE CURVATURE WITH A CURVE CONCAVE NORTHEASTERLY AND HAVING A RADIUS OF 484 FEET, A RADIAL LINE OF SAID CURVE FROM SAID POINT BEARS NORTH 77°06'54" EAST; THENCE ALONG SAID CURVE SOUTHEASTERLY 311.53 FEET THROUGH A CENTRAL ANGLE OF 36°52'42" TO A POINT OF REVERSE CURVATURE WITH A CURVE CONCAVE SOUTHWESTERLY AND HAVING A RADIUS OF 1266 FEET, A RADIAL LINE OF SAID CURVE FROM SAID POINT BEARS SOUTH 40°14'12" WEST; THENCE ALONG SAID CURVE SOUTHEASTERLY 166.75 FEET THROUGH A CENTRAL ANGLE OF 07°32'48"; THENCE TANGENT FROM SAID CURVE SOUTH 42°13'00" EAST 186.14 FEET TO THE BEGINNING OF A TANGENT CURVE CONCAVE SOUTHWESTERLY AND HAVING A RADIUS OF 1,066.00 FEET; THENCE ALONG SAID CURVE SOUTHEASTERLY 131.96 FEET THROUGH A CENTRAL ANGLE OF 07°55'33"; THENCE NON-TANGENT FROM SAID CURVE SOUTH 25°01'56" EAST 74.98 FEET; THENCE SOUTH 31°06'49" EAST 61.06 FEET TO THE BEGINNING OF A TANGENT CURVE CONCAVE NORTHEASTERLY AND HAVING A RADIUS OF 154.00 FEET; THENCE ALONG SAID CURVE SOUTHEASTERLY 74.69 FEET THROUGH A CENTRAL ANGLE OF 27°47'21"; THENCE TANGENT FROM SAID CURVE SOUTH 58°54'10" EAST 106.28 FEET; THENCE SOUTH 53°16'24" EAST 182.10 FEET TO A POINT ON A NON-TANGENT CURVE CONCAVE SOUTHEASTERLY AND HAVING A RADIUS OF 600 FEET, A RADIAL LINE OF SAID CURVE FROM SAID POINT BEARS SOUTH 53°16'24" EAST, SAID POINT ALSO BEING ON THE CENTERLINE OF COLLEGE DRIVE AS SHOWN ON AFOREMENTIONED PARCEL MAP 31730; THENCE ALONG SAID CENTERLINE OF COLLEGE DRIVE THROUGH THE FOLLOWING COURSES: SOUTHERLY ALONG LAST SAID CURVE, 386.33 FEET THROUGH A CENTRAL ANGLE OF 36°53'30"; THENCE TANGENT FROM SAID CURVE, SOUTH 00°09'54" EAST 296.89 FEET TO A POINT ON A LINE BEING PARALLEL WITH AND 50.00 FEET NORTHERLY FROM THE CENTERLINE OF SAID FRANK SINATRA DRIVE; THENCE LEAVING SAID CENTERLINE OF COLLEGE DRIVE, ALONG SAID PARALLEL LINE SOUTH 89°50'06" WEST 3,132.42 FEET; THENCE LEAVING SAID PARALLEL LINE, NORTH 45°08'22' WEST 32.55 FEET TO A POINT ON THE EASTERLY RIGHT OF WAY LINE OF PORTOLA AVENUE, SAID LINE BEING PARALLEL WITH AND 50.00 FEET EASTERLY FROM THE CENTERLINE OF SAID PORTOLA AVENUE; THENCE ALONG SAID PARALLEL LINE NORTH 00°05'32" WEST 2,591.58 FEET TO THE EAST-WEST QUARTER SECTION LINE P6401-1052\2493802v5.doc A-2-3 OF SAID SECTION 33; THENCE LEAVING SAID PARALLEL LINE SOUTH 89°51'12" WEST 50.00 FEET ALONG SAID QUARTER SECTION LINE TO THE WEST QUARTER CORNER OF SAID SECTION 33, SAID POINT ALSO BEING ON THE CENTERLINE OF SAID PORTOLA AVENUE; THENCE ALONG SAID WEST LINE OF SECTION 33 AND SAID CENTERLINE OF PORTOLA AVENUE, NORTH 00°05'32" WEST 999.77 FEET TO THE POINT OF BEGINNING. (SAID LAND IS SHOWN AND DESCRIBED IN THAT CERTAIN CERTIFICATE OF COMPLIANCE NO. 05-01, APPROVED BY THE CITY OF PALM DESERT, RECORDED AUGUST 24, 2005 AS INSTRUMENT NO. 05-696754 OF OFFICIAL RECORDS.) EXCEPTING THEREFROM, THAT PORTION CONVEYED TO THE CITY OF PALM DESERT FOR A PARK SITE "D", IN DEED RECORDED APRIL 16, 2021, AS INSTRUMENT NO. 2021-0239079, OF OFFICIAL RECORDS, DESCRIBED AS: PARK “D” IN THE CITY OF PALM DESERT, COUNTY OF RIVERSIDE, STATE OF CALIFORNIA, THAT PORTION OF PARCEL 9, OF PARCEL MAP NO. 31730, AS SHOWN BY MAP ON FILE IN BOOK 211 OF PARCEL MAPS, AT PAGES 63 THROUGH 75, INCLUSIVE, RIVERSIDE COUNTY RECORDS, AS ADJUSTED BY CERTIFICATE OF COMPLIANCE NO. 05-01, RECORDED AUGUST 24, 2005, AS DOCUMENT NO. 2005-0696754, OFFICIAL RECORDS, LOCATED IN THE NORTHWEST QUARTER OF SECTION 33, TOWNSHIP 4 SOUTH, RANGE 6 EAST, SAN BERNARDINO MERIDIAN, MORE PARTICULARLY DESCRIBED AS FOLLOWS: COMMENCING AT THE CENTERLINE INTERSECTION OF PACIFIC AVENUE AND COLLEGE DRIVE AS SHOWN ON SAID PARCEL MAP 31730, SAID POINT ALSO BEING ON A CURVE IN COLLEGE DRIVE, A RADIAL LINE TO SAID POINT BEARS NORTH 07°29'27" EAST; THENCE SOUTH 37°20'49" EAST, A DISTANCE OF 537.35 FEET TO THE BEGINNING OF A NON-TANGENT CURVE, CONCAVE NORTHWESTERLY, HAVING A RADIUS OF 379.00 FEET, A RADIAL LINE TO SAID POINT BEARS SOUTH 29°15'38" EAST, AND THE TRUE POINT OF BEGINNING; THENCE NORTHEASTERLY ALONG THE ARC OF SAID CURVE, THROUGH A CENTRAL ANGLE OF 05°48'57", AN ARC DISTANCE OF 38.47 FEET; THENCE NORTH 54°55'25" EAST, A DISTANCE OF 61.87 FEET TO THE BEGINNING OF A TANGENT CURVE, CONCAVE SOUTHERLY, HAVING A RADIUS OF 15.00 FEET; THENCE EASTERLY ALONG THE ARC OF SAID CURVE, THROUGH A CENTRAL ANGLE OF 53°38'58", AN ARC DISTANCE OF 14.05 FEET, A RADIAL LINE TO SAID POINT BEARS NORTH 18°34'23" EAST; THENCE NON-TANGENT TO SAID CURVE SOUTH 54°55'25" WEST, A DISTANCE OF 82.08 FEET; P6401-1052\2493802v5.doc A-2-4 THENCE SOUTH 35°04'35" EAST, A DISTANCE OF 62.13 FEET TO THE BEGINNING OF A TANGENT CURVE, CONCAVE NORTHEASTERLY, HAVING A RADIUS OF 195.00 FEET; THENCE SOUTHEASTERLY ALONG THE ARC OF SAID CURVE, THROUGH A CENTRAL ANGLE OF 26°47'25", AN ARC DISTANCE OF 91.18 FEET; THENCE SOUTH 61°52'00" EAST, A DISTANCE OF 58.80 FEET TO THE BEGINNING OF A NON-TANGENT CURVE, CONCAVE EASTERLY, HAVING A RADIUS OF 1038.00 FEET, A RADIAL LINE TO SAID POINT BEARS NORTH 65°31'59" WEST; THENCE SOUTHERLY ALONG THE ARC OF SAID CURVE, THROUGH A CENTRAL ANGLE OF 06°23'39", AN ARC DISTANCE OF 115.84 FEET; THENCE SOUTH 18°04'23" WEST, A DISTANCE OF 36.67 FEET; THENCE SOUTH 63°58'57" WEST, A DISTANCE OF 7.18 FEET TO THE BEGINNING OF A NON-TANGENT CURVE, CONCAVE SOUTHERLY, HAVING A RADIUS OF 1038.00 FEET, A RADIAL LINE TO SAID POINT BEARS NORTH 19°53'31" EAST; THENCE WESTERLY ALONG THE ARC OF SAID CURVE, THROUGH A CENTRAL ANGLE OF 05°38'40", AN ARC DISTANCE OF 102.26 FEET; THENCE NORTH 75°45'09" WEST, A DISTANCE OF 314.02 FEET; THENCE NORTH 01°23'06" EAST, A DISTANCE OF 14.67 FEET TO THE BEGINNING OF A NON-TANGENT CURVE, CONCAVE NORTHERLY, HAVING A RADIUS OF 750.00 FEET, A RADIAL LINE TO SAID POINT BEARS SOUTH 00°14'21" WEST; THENCE EASTERLY ALONG THE ARC OF SAID CURVE, THROUGH A CENTRAL ANGLE OF 24°08'40", AN ARC DISTANCE OF 316.05 FEET TO THE BEGINNING OF A COMPOUND CURVE, CONCAVE WESTERLY, HAVING A RADIUS OF 15.00 FEET, A RADIAL LINE TO SAID POINT BEARS SOUTH 23°54'19" EAST; THENCE NORTHERLY ALONG THE ARC OF SAID CURVE, THROUGH A CENTRAL ANGLE OF 95°21'19", AN ARC DISTANCE OF 24.96 FEET; THENCE NORTH 29°15'38" WEST, A DISTANCE OF 75.93 FEET, TO THE TRUE POINT OF BEGINNING; EXCEPTING THEREFROM THAT PORTION CONVEYED TO THE CITY OF PALM DESERT FOR A PARK SITE "E", IN DEED RECORDED APRIL 16, 2021 AS INSTRUMENT NO. 2021-0239079 OF OFFIC IAL RECORDS, DESCRIBED AS FOLLOWS: PARK “E” IN THE CITY OF PALM DESERT, COUNTY OF RIVERSIDE, STATE OF CALIFORNIA, THAT PORTION OF PARCEL 9, OF PARCEL MAP NO. 31730, AS SHOWN BY MAP ON P6401-1052\2493802v5.doc A-2-5 FILE IN BOOK 211 OF PARCEL MAPS, AT PAGES 63 THROUGH 75, INCLUSIVE, RIVERSIDE COUNTY RECORDS, AS ADJUSTED BY CERTIFICATE OF COMPLIANCE NO. 05-01, RECORDED AUGUST 24, 2005, AS DOCUMENT NO. 2005-0696754, OFFICIAL RECORDS, LOCATED IN THE NORTHWEST QUARTER OF SECTION 33, TOWNSHIP 4 SOUTH, RANGE 6 EAST, SAN BERNARDINO MERIDIAN, MORE PARTICULARLY DESCRIBED AS FOLLOWS: COMMENCING AT THE CENTERLINE INTERSECTION OF PACIFIC AVENUE AND COLLEGE DRIVE AS SHOWN ON SAID PARCEL MAP 31730, SAID POINT ALSO BEING ON A CURVE IN COLLEGE DRIVE, A RADIAL LINE TO SAID POINT BEARS NORTH 07°29'27" EAST; THENCE SOUTH 05°06'22" WEST, A DISTANCE OF 637.33 FEET TO THE TRUE POINT OF BEGINNING; THENCE SOUTH 14°14'51" WEST, A DISTANCE OF 225.00 FEET; THENCE NORTH 75°45'09" WEST, A DISTANCE OF 92.83 FEET TO THE BEGINNING OF A TANGENT CURVE, CONCAVE NORTHERLY, HAVING A RADIUS OF 1033.00 FEET; THENCE WESTERLY ALONG THE ARC OF SAID CURVE, THROUGH A CENTRAL ANGLE OF 01°48'48", AN ARC DISTANCE OF 32.69 FEET, A RADIAL LINE TO SAID POINT BEARS SOUTH 16°03'39" WEST; THENCE NON-TANGENT TO SAID CURVE NORTH 16°03'39" EAST, A DISTANCE OF 225.00 FEET TO THE BEGINNING OF A NON-TANGENT CURVE, CONCAVE NORTHERLY, HAVING A RADIUS OF 808.00 FEET, A RADIAL LINE TO SAID POINT BEARS SOUTH 16°03'39" WEST; THENCE EASTERLY ALONG THE ARC OF SAID CURVE, THROUGH A CENTRAL ANGLE OF 01°48'48", AN ARC DISTANCE OF 25.57 FEET; THENCE SOUTH 75°45'09" EAST, A DISTANCE OF 92.83 FEET, TO THE TRUE POINT OF BEGINNING; (APN: 694-190-053, 694-200-013 AND 694-200-014) AND (A PORTION OF APN: 694-190- 054 ) PARCEL B: PARCELS 4, 5 AND 6 OF PARCEL MAP NO. 31730, AS SHOWN BY MAP ON FILE IN BOOK 211, PAGES 63 THROUGH 75 OF PARCEL MAPS, RECORDS OF RIVERSIDE COUNTY, CALIFORNIA. EXCEPTING THEREFROM, THAT PORTION CONVEYED TO THE COACHELLA VALLEY WATER DISTRICT FOR A WELL SITE, IN DEED RECORDED DECEMBER 5, 2008 AS INSTRUMENT NO. 08-640594 OF OFFICIAL RECORDS. P6401-1052\2493802v5.doc A-2-6 EXCEPTING THEREFROM, THAT PORTION CONVEYED TO THE CITY OF PALM DESERT FOR A PARK DEDICATION, PARK "C", IN DEED RECORDED APRIL 16, 2021 AS INSTRUMENT NO. 2021-0239079, OF OFFICIAL RECORDS, DESCRIBED AS FOLLOWS: PARK “C” IN THE CITY OF PALM DESERT, COUNTY OF RIVERSIDE, STATE OF CALIFORNIA, THOSE PORTIONS OF PARCELS 4 AND 5, OF PARCEL MAP NO. 31730 AS SHOWN BY MAP ON FILE IN BOOK 211 OF PARCEL MAPS, AT PAGES 63 THROUGH 75, INCLUSIVE, RIVERSIDE COUNTY RECORDS, AND THAT PORTION OF THE LAND DESCRIBED IN GRANT DEED RECORDED DECEMBER 29, 2006 AS DOCUMENT NO. 2006-0951883, OFFICIAL RECORDS, OF SAID RIVERSIDE COUNTY, ALL LOCATED IN THE NORTHWEST QUARTER OF SECTION 33, TOWNSHIP 4 SOUTH, RANGE 6 EAST, SAN BERNARDINO MERIDIAN, MORE PARTICULARLY DESCRIBED AS FOLLOWS: COMMENCING AT MOST EASTERLY CORNER OF SAID PARCEL 5; THENCE NORTH 68°24'41" WEST, A DISTANCE OF 175.98 FEET TO THE TRUE POINT OF BEGINNING; THENCE NORTH 04°25'25" WEST, A DISTANCE OF 88.70 FEET TO THE BEGINNING OF A TANGENT CURVE, CONCAVE SOUTHWESTERLY, HAVING A RADIUS OF 15.00 FEET; THENCE NORTHWESTERLY ALONG THE ARC OF SAID CURVE, THROUGH A CENTRAL ANGLE OF 90°00'00", AN ARC DISTANCE OF 23.56 FEET; THENCE SOUTH 85°34'35" WEST, A DISTANCE OF 31.23 FEET; THENCE NORTH 62°37'54" WEST, A DISTANCE OF 165.00 FEET; THENCE NORTH 50°15'32" WEST, A DISTANCE OF 31.76 FEET TO THE BEGINNING OF A TANGENT CURVE, CONCAVE SOUTHERLY, HAVING A RADIUS OF 15.00 FEET; THENCE WESTERLY ALONG THE ARC OF SAID CURVE, THROUGH A CENTRAL ANGLE OF 74°40'44", AN ARC DISTANCE OF 19.55 FEET; THENCE SOUTH 55°03'44" WEST, A DISTANCE OF 78.40 FEET TO THE BEGINNING OF A NON-TANGENT CURVE, CONCAVE NORTHEASTERLY, HAVING A RADIUS OF 172.00 FEET, A RADIAL LINE TO SAID POINT BEARS SOUTH 55°03'44" WEST; THENCE NORTHWESTERLY ALONG THE ARC OF SAID CURVE, THROUGH A CENTRAL ANGLE OF 11°22'18", AN ARC DISTANCE OF 34.14 FEET, A RADIAL LINE TO SAID POINT BEARS SOUTH 66°26'02" WEST; P6401-1052\2493802v5.doc A-2-7 THENCE NON-TANGENT TO SAID CURVE NORTH 66°26'02" EAST, A DISTANCE OF 78.60 FEET TO THE BEGINNING OF A TANGENT CURVE, CONCAVE NORTHWESTERLY, HAVING A RADIUS OF 15.00 FEET; THENCE NORTHEASTERLY ALONG THE ARC OF SAID CURVE, THROUGH A CENTRAL ANGLE OF 74°29'38", AN ARC DISTANCE OF 19.50 FEET; THENCE NORTH 08°03'36" WEST, A DISTANCE OF 37.50 FEET; THENCE NORTH 00°03'53" WEST, A DISTANCE OF 110.00 FEET; THENCE NORTH 25°07'23" EAST, A DISTANCE OF 36.52 FEET TO THE BEGINNING OF A TANGENT CURVE, CONCAVE WESTERLY, HAVING A RADIUS OF 15.00 FEET; THENCE NORTHERLY ALONG THE ARC OF SAID CURVE, THROUGH A CENTRAL ANGLE OF 90°00'00", AN ARC DISTANCE OF 23.56 FEET; THENCE NORTH 64°52'37" WEST, A DISTANCE OF 84.82 FEET TO THE BEGINNING OF A NON-TANGENT CURVE, CONCAVE SOUTHEASTERLY, HAVING A RADIUS OF 15.00 FEET, A RADIAL LINE TO SAID POINT BEARS NORTH 70°23'15" WEST; THENCE NORTHEASTERLY ALONG THE ARC OF SAID CURVE, THROUGH A CENTRAL ANGLE OF 92°39'51", AN ARC DISTANCE OF 24.26 FEET; THENCE SOUTH 67°43'24" EAST, A DISTANCE OF 10.47 FEET TO THE BEGINNING OF A TANGENT CURVE, CONCAVE SOUTHWESTERLY, HAVING A RADIUS OF 487.00 FEET; THENCE SOUTHEASTERLY ALONG THE ARC OF SAID CURVE, THROUGH A CENTRAL ANGLE OF 68°14'14", AN ARC DISTANCE OF 580.00 FEET TO THE BEGINNING OF A COMPOUND CURVE, CONCAVE NORTHWESTERLY, HAVING A RADIUS OF 15.00 FEET, A RADIAL LINE TO SAID POINT BEARS SOUTH 89°29'10" EAST; THENCE SOUTHWESTERLY ALONG THE ARC OF SAID CURVE, THROUGH A CENTRAL ANGLE OF 88°28'16", AN ARC DISTANCE OF 23.16 FEET TO THE TRUE POINT OF BEGINNING; EXCEPTING THEREFROM THAT PORTION CONVEYED TO THE CITY OF PALM DESERT FOR A PARK DEDICATION PARK "G", IN DEED RECORDED APRIL 16, 2021 AS INSTRUMENT NO. 2021-0239079 OF OFFICIAL RECORDS, DESCRIBED AS FOLLOWS: PARK “G” IN THE CITY OF PALM DESERT, COUNTY OF RIVERSIDE, STATE OF CALIFORNIA, THOSE PORTIONS OF PARCELS 5 AND 6, OF PARCEL MAP NO. 31730 AS SHOWN BY MAP ON FILE IN BOOK 211 OF PARCEL MAPS, AT PAGES 63 THROUGH 75, INCLUSIVE, RIVERSIDE COUNTY RECORDS, LOCATED IN THE NORTHWEST QUARTER OF P6401-1052\2493802v5.doc A-2-8 SECTION 33, TOWNSHIP 4 SOUTH, RANGE 6 EAST, SAN BERNARDINO MERIDIAN, MORE PARTICULARLY DESCRIBED AS FOLLOWS: COMMENCING AT THE CENTERLINE INTERSECTION OF PACIFIC AVENUE AND COLLEGE DRIVE AS SHOWN ON SAID PARCEL MAP 31730, SAID POINT ALSO BEING ON A CURVE IN COLLEGE DRIVE, A RADIAL LINE TO SAID POINT BEARS NORTH 07°29'27" EAST; THENCE NORTH 33°31'59" EAST, A DISTANCE OF 91.07 FEET TO THE BEGINNING OF A NON-TANGENT CURVE, CONCAVE WESTERLY, HAVING A RADIUS OF 3165.00 FEET, SAID POINT ALSO BEING ON THE EASTERLY RIGHT-OF-WAY LINE OF SAID PACIFIC AVENUE, AND BEING THE TRUE POINT OF BEGINNING, A RADIAL LINE TO SAID POINT BEARS SOUTH 81°52'45" EAST; THENCE ALONG SAID EASTERLY RIGHT-OF-WAY LINE AND NORTHERLY ALONG THE ARC OF SAID CURVE, THROUGH A CENTRAL ANGLE OF 07°35'03", AN ARC DISTANCE OF 418.95 FEET A RADIAL LINE TO SAID POINT BEARS SOUTH 89°27'48" EAST; THENCE NON-TANGENT TO SAID CURVE NORTH 10°08'11" EAST, A DISTANCE OF 91.33 FEET; THENCE NORTH 00°03'53" WEST, A DISTANCE OF 118.06 FEET TO THE BEGINNING OF A TANGENT CURVE, CONCAVE SOUTHEASTERLY, HAVING A RADIUS OF 15.00 FEET; THENCE NORTHEASTERLY ALONG THE ARC OF SAID CURVE, THROUGH A CENTRAL ANGLE OF 90°00'00", AN ARC DISTANCE OF 23.56 FEET; THENCE NORTH 89°56'07" EAST, A DISTANCE OF 80.00 FEET TO THE BEGINNING OF A TANGENT CURVE, CONCAVE SOUTHWESTERLY, HAVING A RADIUS OF 15.00 FEET; THENCE SOUTHEASTERLY ALONG THE ARC OF SAID CURVE, THROUGH A CENTRAL ANGLE OF 90°00'00", AN ARC DISTANCE OF 23.56 FEET; THENCE SOUTH 00°03'53" EAST, A DISTANCE OF 333.86 FEET TO THE BEGINNING OF A TANGENT CURVE, CONCAVE NORTHEASTERLY, HAVING A RADIUS OF 328.00 FEET; THENCE SOUTHEASTERLY ALONG THE ARC OF SAID CURVE, THROUGH A CENTRAL ANGLE OF 47°23'22", AN ARC DISTANCE OF 271.29 FEET, A RADIAL LINE TO SAID POINT BEARS SOUTH 42°32'45" WEST; THENCE NON-TANGENT TO SAID CURVE SOUTH 27°22'06" WEST, A DISTANCE OF 159.66 FEET TO THE BEGINNING OF A NON-TANGENT CURVE, CONCAVE SOUTHERLY, HAVING A RADIUS OF 1335.00 FEET, SAID POINT ALSO BEING A POINT P6401-1052\2493802v5.doc A-2-9 ON THE NORTHERLY RIGHT-OF-WAY LINE OF COLLEGE DRIVE, A RADIAL LINE TO SAID POINT BEARS NORTH 17°53'28" EAST; THENCE ALONG SAID NORTHERLY RIGHT-OF-WAY LINE AND WESTERLY ALONG THE ARC OF SAID CURVE, THROUGH A CENTRAL ANGLE OF 06°49'51", AN ARC DISTANCE OF 159.16 FEET TO THE BEGINNING OF A REVERSE CURVE, CONCAVE NORTHEASTERLY, HAVING A RADIUS OF 46.00 FEET, A RADIAL LINE TO SAID POINT BEARS SOUTH 11°03'37" WEST; THENCE CONTINUING ALONG THE NORTHERLY RIGHT-OF-WAY LINE AND NORTHWESTERLY ALONG THE ARC OF SAID CURVE, THROUGH A CENTRAL ANGLE OF 87°03'38", AN ARC DISTANCE OF 69.90 FEET TO THE TRUE POINT OF BEGINNING; EXCEPTING THEREFROM THAT PORTION CONVEYED TO THE CITY OF PALM DESERT FOR PARK DEDICATION PARK "H", IN DEED RECORDED APRIL 16, 2021 AS INSTRUMENT NO. 2021-0239079 OF OFFICIAL RECORDS, DESCRIBED AS FOLLOWS: PARK “H” IN THE CITY OF PALM DESERT, COUNTY OF RIVERSIDE, STATE OF CALIFORNIA, THOSE PORTIONS OF PARCELS 5 AND 6, OF PARCEL MAP NO. 31730 AS SHOWN BY MAP ON FILE IN BOOK 211 OF PARCEL MAPS, AT PAGES 63 THROUGH 75, INCLUSIVE, RIVERSIDE COUNTY RECORDS, LOCATED IN THE NORTHWEST QUARTER OF SECTION 33, TOWNSHIP 4 SOUTH, RANGE 6 EAST, SAN BERNARDINO MERIDIAN, MORE PARTICULARLY DESCRIBED AS FOLLOWS: COMMENCING AT THE CENTERLINE INTERSECTION OF PACIFIC AVENUE AND COLLEGE DRIVE AS SHOWN ON SAID PARCEL MAP 31730, SAID POINT ALSO BEING ON A CURVE IN COLLEGE DRIVE, A RADIAL LINE TO SAID POINT BEARS NORTH 07°29'27" EAST; THENCE NORTH 45°15'49" EAST, A DISTANCE OF 393.89 FEET TO THE TRUE POINT OF BEGINNING; THENCE NORTH 70°31'05" EAST, A DISTANCE OF 72.84 FEET TO THE BEGINNING OF A TANGENT CURVE, CONCAVE NORTHWESTERLY, HAVING A RADIUS OF 20.00 FEET; THENCE NORTHEASTERLY ALONG THE ARC OF SAID CURVE, THROUGH A CENTRAL ANGLE OF 63°39'55", AN ARC DISTANCE OF 22.22 FEET, A RADIAL LINE TO SAID POINT BEARS NORTH 83°08'50" WEST; THENCE NON-TANGENT TO SAID CURVE SOUTH 83°08'50" EAST, A DISTANCE OF 20.00 FEET; P6401-1052\2493802v5.doc A-2-10 THENCE NORTH 63°38'12" EAST, A DISTANCE OF 128.67 FEET TO THE BEGINNING OF A NON-TANGENT CURVE, CONCAVE NORTHEASTERLY, HAVING A RADIUS OF 228.00 FEET, A RADIAL LINE TO SAID POINT BEARS SOUTH 67°17'17" WEST; THENCE SOUTHEASTERLY ALONG THE ARC OF SAID CURVE, THROUGH A CENTRAL ANGLE OF 04°55'16", AN ARC DISTANCE OF 19.58 FEET, A RADIAL LINE TO SAID POINT BEARS SOUTH 62°22'01" WEST; THENCE NON-TANGENT TO SAID CURVE SOUTH 53°23'17" WEST, A DISTANCE OF 136.77 FEET; THENCE SOUTH 19°05'40" WEST, A DISTANCE OF 21.41 FEET TO THE BEGINNING OF A NON-TANGENT CURVE, CONCAVE SOUTHERLY, HAVING A RADIUS OF 20.00 FEET, A RADIAL LINE TO SAID POINT BEARS NORTH 03°22'21" EAST; THENCE WESTERLY ALONG THE ARC OF SAID CURVE, THROUGH A CENTRAL ANGLE OF 39°45'34", AN ARC DISTANCE OF 13.88 FEET; THENCE SOUTH 53°36'47" WEST, A DISTANCE OF 72.10 FEET TO THE BEGINNING OF A NON-TANGENT CURVE, CONCAVE NORTHEASTERLY, HAVING A RADIUS OF 272.00 FEET, A RADIAL LINE TO SAID POINT BEARS SOUTH 53°36'47" WEST; THENCE NORTHWESTERLY ALONG THE ARC OF SAID CURVE, THROUGH A CENTRAL ANGLE OF 16°54'18", AN ARC DISTANCE OF 80.25 FEET TO THE TRUE POINT OF BEGINNING; (APN: 694-190-010, 694-190-037 AND 694-190-055) AND (PORTION OF APN: 694-190-038) PARCEL C: THAT CERTAIN PARCEL OF LAND SITUATED IN THE CITY OF PALM DESER T, COUNTY OF RIVERSIDE, STATE OF CALIFORNIA, BEING A PORTION OF PARCEL 7, AS SHOWN ON PARCEL MAP NO. 31730 FILED IN BOOK 211, PAGES 63 THROUGH 75 OF PARCEL MAPS, RECORDS OF RIVERSIDE COUNTY, CALIFORNIA, MORE PARTICULARLY DESCRIBED AS FOLLOWS: BEGINNING AT A POINT ON A NON-TANGENT CURVE CONCAVE NORTHEASTERLY AND HAVING A RADIUS OF 1,075.00 FEET, SAID POINT BEING ON THE SOUTHERLY RIGHT OF WAY LINE OF GERALD FORD DRIVE, SAID POINT ALSO BEING THE NORTHEASTERLY CORNER OF SAID PARCEL 7; THENCE ALONG SAID SOUTHERLY RIGHT OF WAY LINE ALONG SAID CURVE, SOUTHERLY 390.59 FEET THROUGH A CENTRAL ANGLE OF 20° 49' 04"; THENCE NON-TANGENT FROM SAID CURVE, SOUTH 50° 53' 34" WEST 181.44 FEET; THENCE SOUTH 50° 06' 39" WEST 364.36 FEET TO A POINT ON THE NORTHERLY RIGHT OF WAY LINE OF COLLEGE DRIVE AS SHOWN ON SAID PARCEL MAP NO. 31730; THENCE ALONG THE SOUTHWESTERLY LINE OF SAID PARCEL 7; ALONG SAID NORTHERLY RIGHT OF WAY LINE OF COLLEGE DRIVE, NORTH 39° 53' 21" WEST 63.45 FEET TO THE BEGINNING OF A TANGENT CURVE CONCAVE SOUTHWESTERLY AND HAVING A RADIUS OF 1,035.00 FEET; P6401-1052\2493802v5.doc A-2-11 THENCE ALONG SAID CURVE NORTHWESTERLY 360.82 FEET THROUGH A CENTRAL ANGLE OF 19° 58' 28"; THENCE LEAVING SAID NORTHERLY RIGHT OF WAY LINE ALONG THE NORTHEASTERLY PROLONGATION OF THE RADIAL LINE FROM SAID CURVE, NORTH 30° 08' 11" EAST 213.25 FEET TO THE BEGINNING OF A TANGENT CURVE CONCAVE SOUTHEASTERLY AND HAVING A RADIUS OF 500 FEET; THENCE ALONG SAID CURVE NORTHEASTERLY 480.87 FEET THROUGH A CENTRAL ANGLE OF 55° 06' 13"; THENCE TANGENT FROM SAID CURVE NORTH 85° 14' 25" EAST 136.40 FEET TO THE POINT OF BEGINNING. (SAID LAND IS SHOWN AND DESCRIBED AS PARCEL A IN THAT CERTAIN CERTIFICATE OF COMPLIANCE / WAIVER OF PARCEL MAP PMW 06 -01, APPROVED BY THE CITY OF PALM DESERT, RECORDED SEPTEMBER 8, 2006 AS INSTRUMENT NO. 06-0668994 OF OFFICIAL RECORDS.) APN: 694-190-031 PARCEL D: LOTS 1 THROUGH 236, LETTER LOTS A-W, Y, Z AND LETTER LOTS AA-OO, QQ, OF TRACT MAP NO. 37506-1, IN THE CITY OF PALM DESERT, COUNTY OF RIVERSIDE, STATE OF CALIFORNIA, AS SHOWN BY MAP ON FILE IN BOOK 476 PAGES 51 THROUGH 62, INCLUSIVE OF MAPS, RECORDS OF SAID COUNTY. APN: 694-190-079; 694-190-072 AND 694-190-070; PORTION OF APN: 694-190-035 APN: 694-190-053, 694-200-013-, 693-200-014, a portion of 694-190-054, 694-190-010, 694- 190-037, 694-190-055, a portion of 694-190-038, 694-190-031, 694-190-079, 694-190-072, 694- 190-070 and a portion of 694-190-035 (End of Legal Description) P6401-1052\2493802v5.doc B-1 EXHIBIT “B” ELIGIBLE FACILITIES DESCRIPTION “Acquisition Facilities” means those facilities needed by CVWD in order to provide services to the Project and also includes any of the following: CVWD sewer and water transmission lines, sewer and water pump stations, water reservoirs, well sites, including but not limited to all costs of site acquisition, planning, design, permitting, engineering, legal services, materials testing, coordination, surveying, construction staking, construction, inspection and any and all appurtenances and appurtenant work, such as related clearing and grubbing, grading, and any removal or temporary signage or markings related thereto relating to the foregoing. Eligible Facilities include, but shall not be limited to, the Acquisition Facilities and Discrete Components thereof (listed by development phase, as shown on the accompanying phasing plan diagram) listed in the following table, and other facilities of the same type or types may be substituted in the place of one or more of the specific facilities listed in the table. The final nature and location of the Acquisition Facilities will be determined upon the preparation of final plans and specifications for such Acquisition Facilities. The description of Acquisition Facilities listed above in this Exhibit B is preliminary and representative of the types of facilities eligible to be financed by the CFD. Detailed scope and limits of specific projects will be determined as appropriate, consistent with the standards of CVWD. The Acquisition Facilities shall be constructed, whether or not acquired in their completed states, pursuant to the Plans and Specifications approved by CVWD, which approval will not be unreasonably withheld. Eligible Facilities may include CVWD Charges for water and sewer facilities and the Developer Contributions to Creditable Facilities. [Remainder of this page is intentionally left blank] P6401-1052\2493802v5.doc B-2 Eligible Facilities, Discrete Components, and Estimated Costs (1) Description (Area) Phase 1 (2) (236 units) (Area) Phase 2 (2) (146 units) (Area) Phase 3 (2) (169 units) (Area) Phase 4 (2) (182 units) (Area) Phase 5 (2) (336 units) Total Cost Estimate (2) (1,069 units) 1. Developer Contributions to Creditable Facilities A. Well Site Facilities -defined in Section 2(c)(i)of Installation Agreement (Special Water) (3) ** Due before service is initiated to Unit 372 $2,500,000(5)$2,500,000 B. Reservoir Facilities - defined in Section 2(c)(iv) of Installation Agreement (Special Water) (3) $1,376,022 $ 1,376,022 2. Water Facilities A. On-Site water pipelines $1,239,477 $ 680,681 $ 936,958 $1,126,192 $ 666,607 $ 4,649,915 B. Well Site Improvements (constructed by UPI)400,000 400,000 800,000 1,600,000 3. Sewer Facilities - On-Site sewer pipelines $ 880,497 $ 454,588 $ 646,518 $ 857,327 $ 359,883 $ 3,198,813 4.Development Impact Fees (4) A. Water System Backup Facilities Charges (WSBFC) ($3,707 x 1,069 units) (2)(3) $ 874,852 $ 541,222 $ 626,483 $ 674,674 $1,245,552 $ 3,962,783 B. Supplemental Water Supply Charges (SWSC) ($12,218 per acre x [177.27 acres]) (6) [pending][pending][pending][pending][pending][$2,165,885] C. Meter Charges 92,040 56,940 65,910 70,980 131,040 417,300 D. Sewer ($4,851 x 1,609 units) (2)1,144,836 708,246 819,819 882,882 1,629,936 5,185,719 TOTAL CVWD ELIGIBLE FACILITIES (excludes 1A&B): [$5,175,318] [$3,238,024] [$3,575,117] [$4,710,949] [$4,048,334] [$21,180,416] (1) Estimated Costs based on Murrow CM budget dated 8/30/2018, with SWSC updated by CVWD. Rows or columns may not total due to rounding. (2) Number of units and product type for each development area/phase are estimated and subject to change. (3) The Installation Agreement (Special Water) provides for credit toward Water System Backup Facilities Charges (“WSBFC”) to be given by CVWD to the Property Owner for Developer Contributions to Creditable Facilities in accordance with the terms and conditions described there in. A Disbursement Request may be submitted for a Developer Contribution to Creditable Facilities, but not for the WSBFC credit provided to the Property Owner therefor. WSBFC charges in excess of the amount of credits provided for Developer Contributions to Creditable Facilities may be subject to a Disbursement Request. (4) Pursuant to Section 5.22 of this Agreement, the CVWD Charges list in the table above (as such term is defined in this Agreement) reflect current rates, but they will be imposed at the rate in effect at the time such CVWD Charge is paid. As such, the figures set forth above for CVWD Charges are illustrative and subject to change pursuant to a future rate increase adopted by CVWD. (5) Estimated timing shown in the table for Item 1.A. payment is based on Property Owner’s current development plans to develop Area/Phase 3 before Area/Phase 2. (6) SWSC is payable in full in Area/Phase 1, unless exact acreage for each Area/Phase is provided by Property Owner and confirmed by CVWD. [ Charge based on 43.0 acres for Phase 1, 30.2 acres for Phase 2, 37.0 acres for Phase 3 and 11.8 acres for Phase 4 at $12,218 per acre and 12.4 acres for Phase 4 and 11.8 acres for Phase 5 at $11,742 per acre as detailed in Murow CM budget.] [See attached Phasing Plan for location of Areas/Phases] * Number of units and product type for each development area/phase are preliminary and subject to change. P6401-1052\2493802v5.doc C-1 EXHIBIT “C” DISBURSEMENT REQUEST FORM - DEVELOPER PAYMENTS TO CVWD DISBURSEMENT REQUEST NO. _____ 1. City of Palm Desert Community Facilities District No. 2021-1 (University Park) (“CFD”) is hereby requested to pay from the CFD Bond Proceeds to the Payee identified in Section 5 below, the sum set forth in Section 3 below. 2. The undersigned property owner (the “Property Owner”) certifies, represents, and warrants that (a) the amount requested for Developer Contributions to Creditable Facilities or CVWD Charges, as applicable, is due and payable and has not formed the basis of prior request or payment; and (b) the Property Owner is not in default in the payment of ad valorem real property taxes or special taxes or special assessments levied on its Property in the CFD. 3. Amount requested:  Developer Contributions to Creditable Facilities: ___ Amount for Well Site Facilities: $___________________ ___ Amount for Reservoir Facilities: $___________________  CVWD Charges: For Lot Nos:_________________________________________ Specify Fee(s)/Charge(s) Amount(s) 4. The amount set forth in 3 above is authorized and payable pursuant to the terms of the Joint Community Facilities Agreement by and among the City of Palm Desert (the “City”), the Coachella Valley Water District (“CVWD”) and the Property Owner, dated as of June 8, 2021 (the “Agreement”). Capitalized terms not defined herein shall have the meaning set forth in the Agreement. 5. The City is requested to cause the CFD to make payment with respect to such Developer Contributions to Creditable Facilities or CVWD Charges to: [circle one]  [the undersigned Property Owner (as reimbursement for Developer Contributions to Creditable Facilities or CVWD Charges already paid – receipt(s) of payment are attached)]  [directly to the Coachella Valley Water District] P6401-1052\2493802v5.doc C-2 Pursuant to Section 2.2 of the Agreement, disbursement of proceeds of tax-exempt Bonds for Developer Contributions to Creditable Facilities or CVWD Charges (to the extent permitted by CVWD, the City and the CFD pursuant to Section 2.2) is conditioned upon the provision by the Property Owner and CVWD to the City and the CFD of certain tax certificates in the forms specified therein. Date: “PROPERTY OWNER” UNIVERSITY PARK INVESTOR, LLC By: Name: Title: Date: APPROVED AS TO AMOUNT REQUESTED ONLY: COACHELLA VALLEY WATER DISTRICT, a public agency By: Name: Title: P6401-1052\2493802v5.doc C-2-1 EXHIBIT “D” DISBURSEMENT REQUEST FORM - ACQUISITION FACILITIES DISBURSEMENT REQUEST NO. _____ The undersigned University Park Investor, LLC (the “Property Owner”), hereby requests payment in the total amount of $____________ for the Acquisition Facilities (as defined in the JCFA), as more fully described in Attachment 1 hereto. In connection with this Disbursement Request, the undersigned hereby represents and warrants to the Coachella Valley Water District (“CVWD”), the City of Palm Desert (the “City”), and the City of Palm Desert Community Facilities District No. 2021-1 (University Park) (the “CFD”) as follows: 1. The Undersigned is a duly authorized officer of the Property Owner, qualified to execute this Disbursement Request for payment on behalf of the Property Owner and is knowledgeable as to the matters set forth herein. 2. To the extent that this disbursement request is with respect to a completed Acquisition Facility, the Property Owner has submitted or submits herewith to CVWD as-built drawings or similar plans and specifications for the items to be paid for as listed in Attachment 1 hereto with respect to any such completed Acquisition Facility, and such drawings or plans and specifications, as applicable, are true, correct and complete. To the extent that this payment request is for a Discrete Component, the Property Owner has in the Property Owner’s construction office a marked set of drawings or similar plans and specifications for the Discrete Components to be acquired as listed in Attachment 1 hereto, which drawings or plans and specifications, as applicable, are current and show all changes or modifications which have been made to date. 3. All costs of the Acquisition Facilities or Discrete Components thereof for which payment is requested hereby are Actual Costs (as defined in the JCFA referenced herein) and have not been inflated in any respect. The items for which payment is requested have not been the subject of any prior payment request submitted to CVWD, the City, or the CFD. 4. Supporting documentation (such as third party invoices) is attached with respect to each cost for which payment is requested. 5. There has been compliance with applicable laws relating to prevailing wages for the work to construct the Acquisition Facilities or Discrete Components thereof for which payment is requested. 6. The Acquisition Facilities or Discrete Components thereof for which payment is requested were constructed in accordance with all applicable CVWD or other governmental standards, and in accordance with the as-built drawings or plans and specifications, as applicable, referenced in paragraph 2 above. 7. The Property Owner is in compliance with the terms and provisions of the JCFA, and no portion of the amount being requested to be paid was previously paid. D-2 P6401-1052\2493802v5.doc 8. The Acquisition Price for each Acquisition Facility or Discrete Component thereof (a detailed calculation of which is shown in an Attachment 2 hereto for each such Acquisition Facility or Discrete Component thereof), has been calculated in conformance with the terms of Section 3.6 of the JCFA. 9. The Property Owner is not in default in the payment of ad valorem real property taxes or special taxes or special assessments levied on its Property in the CFD, except as follows: _______________________________________________________________. Capitalized terms not defined herein shall have the meaning set forth in the Joint Community Facilities Agreement by and among the City, CVWD, and the Property Owner, dated as of June 8, 2021 (the “JCFA”). I hereby declare and certify that the above representations and warranties are true and correct. PROPERTY OWNER: UNIVERSITY PARK INVESTOR, LLC, a Delaware limited liability company By: Name: Title: Date: COACHELLA VALLEY WATER DISTRICT: Pursuant to Section 3.6 of the JCFA, Disbursement Request Approved for Submission to the City of Palm Desert By: Name: Title: Date: P6401-1052\2493802v5.doc D-1-1 ATTACHMENT 1 TO EXHIBIT D [list here all Acquisition Facilities or Discrete Components thereof for which payment is requested, and attach support documentation] P6401-1052\2493802v5.doc D-2-1 ATTACHMENT 2 TO EXHIBIT D CALCULATION OF ACQUISITION PRICE. [Use a separate sheet for each Acquisition Facility or Discrete Component for which payment is being requested] 1. Description (by reference to Exhibit B to the JCFA) of the Acquisition Facility or Discrete Component 2. Actual Cost (list here total of supporting invoices and/or other documentation supporting determination of Actual Cost): $ 3. Subtractions from Acquisition Price: Cash Deposit (see Section 3.2(h) of the JCFA) $ $ 4. Total disbursement requested (amount listed in 2, less amounts, if any, listed in 3) $ P6401-1052\2493802v5.doc E-1 EXHIBIT “E” FORM OF DEVELOPER TAX CERTIFICATE Bonds Closing Date: _______________, 20__ In connection with the proposed issuance of the $_________ aggregate principal amount Special Tax Bonds, Series 20__ (the “Bonds”) of the City of Palm Desert Community Facilities District No. 2021-1 (University Park) (the “District”), University Park Investor, LLC (“Developer”), a limited liability company duly organized and operating under the laws of the State of Delaware, acting through its undersigned authorized representative, hereby states and certifies as follows: (i) The Developer has received final bond pricing terms of ___________, underwriter to the District, which set forth the aggregate amount of proceeds of the Bonds to be deposited to the Series 20__ Account of the Improvement Fund (the “Available 20__ Improvement Monies”). (ii) Pursuant to the terms of the JCFA, the Developer intends and expects to submit Disbursement Requests for amounts equivalent to the Available 20__ Improvement Monies within three years of the date of issuance of the 20__ Bonds (currently projected issue date: ____________, 2021) for the following items: (mark and complete all that apply) ____ Actual Costs of Acquisition Facilities (please refer to Exhibit B of the JCFA) Description(s) and estimated amount(s):__________________________________ __________________________________________________________________ __________________________________________________________________ ____ Developer Contributions to Creditable Facilities Description(s) and estimated amount(s):__________________________________ __________________________________________________________________ __________________________________________________________________ ____ CVWD Charges (tax-exempt financing only permitted with CVWD waiver of taxable financing requirement, with concurrence of the City and CFD per Section 2.2 of the JCFA) Description(s) and estimated amount(s):__________________________________ __________________________________________________________________ __________________________________________________________________ (iii) Based on the following, the Developer believes its expectation described in paragraph (ii) above to be reasonable: [state supporting facts]_____________________________ ______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________ P6401-1052\2493802v5.doc E-2 Capitalized terms not otherwise defined herein shall have the meaning ascribed to such terms in the Joint Community Facilities Agreement dated as of June 8, 2021 (the “JCFA”), by and among the City of Palm Desert, CVWD, and the Developer, and if not defined therein, then in the Bond Indenture by and between the District and U.S. Bank National Association, as Trustee, dated as of July 1, 2021. IN WITNESS WHEREOF, Developer has caused this Certificate to be executed by its authorized representative on the date first written above. DEVELOPER: UNIVERSITY PARK INVESTOR, LLC, a Delaware limited liability company By: Name: Title: P6401-1052\2493802v5.doc F-1 EXHIBIT “F” FORM OF CVWD TAX CERTIFICATE - DEVELOPER PAYMENTS TO CVWD Bonds Closing Date: _______________, 20__ In connection with the proposed issuance of the $_________ aggregate principal amount Special Tax Bonds, Series 20__ (the “Bonds”) of the City of Palm Desert Community Facilities District No. 2021-1 (University Park) (the “District”), the Coachella Valley Water District (“CVWD”), acting through its undersigned authorized representative, hereby states and certifies as follows: A. CVWD has been provided with a copy of the Developer Tax Certificate, dated as of the issuance date of the Bonds and executed by University Park Investor, LLC (the “Developer”), by which the Developer has indicated that it intends to submit Disbursement Requests for Developer Contributions to Creditable Facilities and/or CVWD Charges for payment from proceeds of the Bonds (“Bond Proceeds”) in the following amounts:  Developer Contributions to Creditable Facilities: $_____________________  CVWD Charges: $_____________________ (tax-exempt financing only permitted with CVWD waiver of taxable financing requirement, with concurrence of the City and CFD per Section 2.2 of the JCFA) B. As to Developer Contributions for Creditable Facilities, CVWD expects to spend the full amount of the corresponding Bond Proceeds identified in paragraph (A) above on capital improvement(s) owned and operated by CVWD within the earlier of (i) three (3) years from when the Developer Contribution for Creditable Facilities was paid to CVWD, or (ii) three (3) years after the date of issuance of the Bonds, as follows: [state description(s) and estimated amount(s)]_____________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________ C. Based on the following, CVWD believes its expectation described in paragraph (B) above to be reasonable: [state supporting facts]________________________________________ ______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________ D. CVWD will spend the full amount of the corresponding Bond Proceeds for CVWD Charges identified in paragraph (A) above on capital improvement(s) owned and operated by CVWD within the earlier of (i) three (3) years from when the Deposit for the subject CVWD Charges was paid to CVWD, or (ii) three (3) years after the date of issuance of the Bonds, as follows: [state description(s) and estimated amount(s)]_________________________________ ______________________________________________________________________________ ______________________________________________________________________________ Capitalized terms not otherwise defined herein shall have the meaning ascribed to such terms in the Joint Community Facilities Agreement dated as of June 8, 2021 (the “JCFA”), by and among the City of Palm Desert, CVWD, and the Developer, and if not defined therein, then in the P6401-1052\2493802v5.doc F-2 Bond Indenture by and between the District and U.S. Bank National Association, as Trustee, dated as of July 1, 2021. IN WITNESS WHEREOF, CVWD has caused this Certificate to be executed by its authorized representative on the date first written above. COACHELLA VALLEY WATER DISTRICT, a county water district By: Name: Its: General Manager of the Coachella Valley Water District G-1 P6401-1052\2493802v5.doc EXHIBIT “G” FORMS OF BILLS OF SALE The forms of Bills of Sale can be found at http://www.cvwd.org/209/Appendices. The current forms of the Bills of Sale, as of the date of this Agreement, are attached to this Exhibit “G,” as follows: (1) Bill of Sale “Domestic Water Facilities” (2) Bill of Sale “Sanitation Facilities” (3) Bill of Sale “Domestic Water and Sanitation Facilities” (4) Bill of Sale “Drainage Facilities/Irrigation Facilities” (5) Bill of Sale “Stormwater Facilities” Page 1 of 1 ENG DS-002 (Rev 6/20/13) COACHELLA VALLEY WATER DISTRICT BILL OF SALE File:__________ For a valuable consideration, receipt of which is hereby acknowledged as SELLER, hereby bargains, conveys and sells unto the COACHELLA VALLEY WATER DISTRICT, a public agency of the State of California, the following described personal property, such conveyance to become effective upon receipt of the Certificate of Completion and Final Acceptance of such personal property as described below: All of the domestic water facilities including, but not limited to, fire hydrants and services for CVWD Drawing No(s): Water: Sewer: Other: Witnessed by: Seller: By: Date: Date: Page 1 of 1 ENG DS-003 (Rev 10/15/19) COACHELLA VALLEY WATER DISTRICT BILL OF SALE File:__________ For a valuable consideration, receipt of which is hereby acknowledged as SELLER, hereby bargains, conveys and sells unto the COACHELLA VALLEY WATER DISTRICT, a public agency of the State of California, the following described personal property, such conveyance to become effective upon receipt of the Certificate of Completion and Final Acceptance of such personal property as described below: All of the sanitation collection facilities including, but not limited to, manholes and street sewer laterals for CVWD Drawing No(s): Water: Sewer: Other: Witnessed by: Seller: By: Date: Date: Page 1 of 1 ENG DS-004 (Rev 10/15/19) COACHELLA VALLEY WATER DISTRICT BILL OF SALE File:__________ For a valuable consideration, receipt of which is hereby acknowledged as SELLER, hereby bargains, conveys and sells unto the COACHELLA VALLEY WATER DISTRICT, a public agency of the State of California, the following described personal property, such conveyance to become effective upon receipt of the Certificate of Completion and Final Acceptance of such personal property as described below: All of the domestic water and sanitation collection facilities including, but not limited to fire hydrants, services, manholes and street sewer laterals for CVWD Drawing No(s): Water: Sewer: Other: Witnessed by: Seller: By: Date: Date: Page 1 of 1 ENG DS-005 (Rev 6/20/13) COACHELLA VALLEY WATER DISTRICT BILL OF SALE File: For a valuable consideration, receipt of which is hereby acknowledged as SELLER, hereby bargains, conveys and sells unto the COACHELLA VALLEY WATER DISTRICT, a public agency of the State of California, the following described personal property, such conveyance to become effective upon receipt of the Certificate of Completion and Final Acceptance of such personal property as described below: All of the drainage facilities/Irrigation Lateral No. for CVWD Drawing No(s): Witnessed by: Seller: By: Date: Date: Page 1 of 1 ENG DS-006 (Rev 6/20/13) COACHELLA VALLEY WATER DISTRICT BILL OF SALE File: For a valuable consideration, receipt of which is hereby acknowledged as SELLER, hereby bargains, conveys and sells unto the COACHELLA VALLEY WATER DISTRICT, a public agency of the State of California, the following described personal property, such conveyance to become effective upon receipt of the Certificate of Completion and Final Acceptance of such personal property as described below: All of the stormwater facilities including, but not limited to, concrete slope protection, inlets, cut-off walls, and tie-ins for: CVWD Drawing No(s): Witnessed by: Seller: By: Date: Date: [This page has intentionally been left blank.] ORDINANCE NO. 1365 MEETING DATE 05-/ 3-'2{),Z,/ 0 CONTINUED TO ---------g PASSES TO 2ND READING (}3-/J.J-1AJ,i/ AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PALM DESERT ACTING IN ITS CAPACITY AS THE LEGISLATIVE BODY OF CITY OF PALM DESERT COMMUNITY FACILITIES DISTRICT NO. 2021- 1 (UNIVERSITY PARK) AUTHORIZING THE LEVY OF A SPECIAL TAX WITHIN THE DISTRICT RECITALS : WHEREAS, in accordance with a request set forth in a petition signed by University Park Investor, LLC, the owner of certain of the land proposed for inclusion in a proposed community facilities district , the City Council (the "City Council ") of the City of Palm Desert , California (the "City"), has previously adopted its Resolution No. 2021-05, entitled "A Resolution of Intention of the City Council of the City of Palm Desert to Establish City of Palm Desert Community Facilities District No . 2021 -1 (University Park) and to Authorize the Levy of a Special Tax within City of Palm Desert Community Facilities District No . 2021 -1 (University Park)" (the "Resolution of Intention to Establish District") stating its intention to conduct proceedings to form City of Palm Desert Community Facilities District No . 2021-1 (University Park) (the "District"), pursuant to the Mello-Roos Community Facilities Act of 1982 , as amended , commencing with Section 53311 of the California Government Code (the "Act") to finance certain public facilities necessary to meet the increased demands placed upon the public infrastructure , the City, and the Coachella Valley Water District as a result of the development of the property within the boundaries of the District, including development impact fees therefor , and to pay and defease a pro rata portion of outstanding Series 2006A Special Tax Bonds issued by, and secured by the special taxes of, existing City of Palm Desert Community Facilities District No. 2005 -1 (University Park) and refinance the facilities previously financed thereby (collectively , the "Facilities "); and WHEREAS , the City Council has previously adopted its Resolution No. 2021 -06 , entitled "A Resolution of Intention of the City Council of the City of Palm Desert to Incur Bonded Indebtedness Within Proposed City of Palm Desert Community Facilities District No . 2021 -1 (University Park)" (the "Resolution of Intention to Incur Bonded Indebtedness ") stating the City Council 's intention , acting as the legislative body of the District , to authorize the issuance and sale of one or more series of bonds for the District in maximum aggregate principal amount of $50 ,000 ,000 to finance the cost of Facilities ; and WHEREAS , the Resolution of Intention to Establish District and Resolution of Intention to Incur Bonded Indebtedness set April 22 , 2021 as the date of a public hearing on the establishment of the District , the extent of the District , the furnishing of Facilities to meet increased demands on infrastructure as a result of development in the -1 - W:\Staff Reports. Shared 2\Staff Reports 05-27-2021\4. City Clerk. 05-27-2021112 University Park . JCFA and Ord Adoption\03 Ordinance Authorizing Levy of Special Tax (Palm Desert CFO 2021·1 Univ Park) 5.27 .21 .DOCX ORDINANCE NO. 1365 District , the proposed rate and method of apportionment of the special tax within the District (the "Rate and Method "), and the proposed debt issue ; and WHEREAS, a notice of the public hearing was published and mailed to all landowners proposed to be included in the District pursuant to the Act ; and WHEREAS , prior to the date of the public hearing there was filed with the City Council a report containing a description of the facilities necessary to adequately meet the needs of the District and an estimate of the cost of financing such facilities as required by Section 53321.5 of the Act (the "Report "); and WHEREAS , at the public hearing , all persons desiring to be heard on all matters pertaining to the establishment of the District , the extent of the District , the furnishing of Facilities to meet increased demands on infrastructure as a result of development in the District , the proposed Rate and Method , and the proposed debt issue were heard and a full and fair hearing was held ; and WHEREAS , at the public hearing , evidence was presented to the City Council on the matters before it , and the City Council at the conclusion of the hearing is fully advised as to all matters relating to the formation of the District, the levy of the special tax , and the incurrence of bonded indebtedness therein ; and WHEREAS , subsequent to the public hearing , the City Council adopted a Resolution entitled "A Resolution of Formation of the City Council of the City of Palm Desert to Establish City of Palm Desert Community Facilities District No. 2021-1 (University Park), to Make Findings Under the California Environmental Quality Act With Respect Thereto , to Establish an Appropriations Limit Therefor, to Authorize the Levy of a Special Tax Therein , and to Submit the Establishment of an Appropriations Limit and the Levy of a Special Tax to the Qualified Electors Thereof" (the "Resolution of Formation "); and WHEREAS , subsequent to the public hearing , the City Council also adopted a resolution entitled "A Resolution of the City Council of the City of Palm Desert to Declare the Necessity to Incur Bonded Indebtedness within City of Palm Desert Community Facilities District No. 2021 -1 (University Park )" which determined the necessity to incur bonded indebtedness in the maximum principal amount of $50 ,000 ,000 ; and WHEREAS , on May 13 , 2021 , the City Council adopted a resolution entitled "A Resolution of the City Council of the City of Palm Desert Calling a Special Election within City of Palm Desert Commun ity Facilities District No . 2021 -1 (University Park )" (the "Resolution Calling a Special Election ") which called a special election of the qualified electors of the District ; and WHEREAS , pursuant to the terms of the Resolution Calling a Special Elect ion , an election was held within the District at which the sole qualified elector of the District approved the establishment of an appropriations limit for the District , the incurrence of bonded indebtedness , and the levy of a special tax within the District ; and -2 - W :\Staff Reports . Shared 2\Staff Re port s 05-27-2021 \4 -Cit y Clerk -05-27-2021 \12 University Park -JCFA an d Ord Adoption\03 Ordinance Authorizin g Levy of Special Tax (Palm Desert CFD 2021-1 Univ Park) 5.27 .21 .DOCX ORDINANCE NO. 1365 WHEREAS , on May 13 , 2021 , the City Council adopted a resolution entitled "A Resolution of the City Council of the City of Palm Desert Declaring the Results of a Special Election in City of Palm Desert Community Facilities District No . 2021-1 (University Park) and Directing the Recording of a Notice of Special Tax Lien ," which certified the results of the on May 13 , 2021 election conducted by the City Clerk , which results showed that more than two-thirds of the votes cast in the District were in favor of the proposition to establish an appropriations limit for the District , incur bonded indebtedness and levy the special tax. NOW , THEREFORE , THE CITY COUNCIL OF THE CITY OF PALM DESERT DOES HEREBY ORDAIN AS FOLLOWS : Section 1. Recitals. The above recitals are all true and correct. Section 2 . Authorization of Levy of Special Tax. By passage of this Ordinance , the City Council authorizes the levy of a special tax within the District at the maximum rates and in accordance with the Rate and Method set forth in Exhibit "B" to the Resolution of Formation which is on file in the office of the City Clerk and incorporated herein by reference . Section 3. Annual Rate Determination. The City Council is hereby further authorized to determine on or before August 10 of each year, or such other date as is established by law or by the County Auditor-Controller of the County of Riverside, the specific special tax to be levied on each parcel of land in the District , except that the special tax rate to be levied shall not exceed the maximum rates set forth in the Rate and Method, but the special tax may be levied at a lower rate . Section 4. Exemption of Government Property. Properties or entities of the state , federal , or other local governments shall be exempt from the above-referenced and approved special tax only to the extent set forth in the Rate and Method , and otherwise shall be subject to tax consistent with the provisions of Section 53317.3 and 53317.5 of the Act. Section 5. Use of Collections. All of the collections of the special tax shall be used only as provided for in the Act and in the Resolution of Formation. The special tax shall be levied only so long as needed for its purpose as described in the Resolution of Formation . Section 6. Collection . The special tax shall be collected in the same manner as ordinary ad valorem taxes and shall be subject to the same penalties and the same procedure , sale and lien in any case of delinquency as applicable for ad valorem property taxes; provided , however, that the special tax may be co llected by direct billing by the City of the property owners in the District or in such other manner as may be provided by the City Council. In addition , the provisions of Section 53356 .1 of the Act shall apply to any delinquent special tax payments . Section 7. Authorization. The specific authorization for adoption of this Ordinance is the provisions of Section 53340 of the Act. - 3 - W :\Staff Reports-Shared 2\Staff Re ports 05 -27-202114 -City Clerk -05-27-2021 \12 Un ivers ity Park -JCFA and Ord Adoption\03 Ordinance Autho riz ing Le vy of Special Ta x (Palm Desert CFD 2021-1 Un iv Park) 5.27 .21 .DOCX ORDINANCE NO. 1365 Section 8. Severablility. If for any reason any portion of this Ordinance is found to be invalid, or if the special tax is found inapplicable to any particular parcel within the District , by a Court of competent jurisdiction, that balance of this Ordinance, and the application of the special tax to the remaining parcels within the District shall not be affected. Section 9. Certification. The City Clerk shall certify to the passage of this Ordinance and cause it to be published or posted in accordance with law. PASSED , APPROVED and ADOPTED by the City Council of the City of Palm Desert, California , on this [27th] day of May , 2021, by the following vote, to wit: AYES: NOES: ABSENT: ABSTAIN: ATTEST: M. Gloria Sanchez , Acting City Clerk City of Palm Desert, California Kathleen Kelly , Mayor -4 - W :\Staff Reports-Shared 2\Staff Reports 05-27-2021 \4 -City Clerk -05-27-2021 \12 University Park-JCFA and Ord Adoption \0 3 Ordinance Authorizing Levy of Special Tax (Pal m Desert CFO 2021-1 Univ Park) 5.27 .2 1.DOCX