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HomeMy WebLinkAbout2026-07-14 - AGENDA REPORTS - CFD 2020-1 COOPER ST PARKING STRUCTURE ANNEX MOD AND O&M XFERO Agenda Item: 1 CITY OF SANTA CLARITA .` AGENDA REPORT PUBLIC HEARINGS CITY MANAGER APPROVAL: DATE: July 14, 2026 SUBJECT: ANNEXATION TO AND MODIFICATION OF CFD NO. 2020-1 (COOPER STREET PARKING STRUCTURE) AND TRANSFER OF PARKING STRUCTURE OPERATION AND MAINTENANCE TO THE CITY DEPARTMENT: Administrative Services PRESENTER: Brittany Houston RECOMMENDED ACTION City Council: Conduct a public hearing on the proposed annexation and modifications to the City of Santa Clarita Community Facilities District No. 2020-1 (Cooper Street Parking Structure) (the "Maintenance CFD"), including the annexation of certain parcels, the removal of the existing parcel and modifications to the rate and method of apportionment. 2. Adopt a resolution determining the validity of prior proceedings relating to the annexation of property into the Maintenance CFD, and considering certain modifications to the Maintenance CFD and calling a special election. 3. Open and review ballots, and declare results. 4. If the proposition passes with a two-thirds vote: (a) adopt a resolution canvassing the results of the election held; and (b) adopt a resolution approving certain modifications, annexing property authorizing the levy of a special tax within the Maintenance CFD, and approving certain agreements relating to the transfer of the operation and maintenance of the Cooper Street Parking Structure to the City. 5. City Council approve and authorize the City Manager or designee to execute a Termination of Parking Management Services Agreement and Settlement Agreement, Amendment and Page 1 Packet Pg. 10 O Restatement to Parking Spaces Easement Agreement, and Termination of Easement Agreement for Solar Facilities and Community Identification Signage, associated with the annexation and modification of the Maintenance CFD, subject to City Attorney review. BACKGROUND In 2016, the City of Santa Clarita (City) formed a community facilities district designated "City of Santa Clarita Community Facilities District No. 2016-1 (Vista Canyon)" (the "Vista Canyon CFD"), for the approved Vista Canyon development located at the end of Lost Canyon Road near Sand Canyon (the "Development"). The Vista Canyon CFD covers only the apartment and commercial use parcels within the Development. In February 2020, the Vista Canyon CFD issued its first series of bonds (the "Bonds") secured by special taxes within the Vista Canyon CFD to fund (i) the City -owned Cooper Street Parking Structure (the "Parking Structure"), with 84 dedicated spaces for the adjacent apartment complex and 529 public parking spaces, and (ii) a portion of the Vista Canyon Transit Center. The Vista Canyon CFD also contained a backup maintenance special tax on the apartments and commercial property if the Property Owner Association of the Development (the "POA") failed to maintain the Parking Structure. In October 2020, following final review by the City's Public Works department, the City purchased the Parking Structure from the master developer of the Development for $15,000,000 using the proceeds of the Bonds pursuant to the Funding and Acquisition Agreement approved on April 12, 2016. Pursuant to the conditions for development, the original intent was for the POA to pay the cost of operating and maintaining the Parking Structure. On October 21, 2020, the City entered into a Parking Management Services Agreement with the POA (the "Management Agreement"). In order to maintain the tax-exempt nature of the Bonds and have the Management Agreement be considered a "qualified management contract" under Internal Revenue Service (IRS) rules, tax counsel for the City's bond counsel required the formation of a new community facilities district and the imposition of a services special tax to pay the Manager under the Management Agreement and other costs associated with the operation and maintenance of the Parking Structure. In accordance with the Management Agreement, on January 26, 2021, the "City of Santa Clarita Community Facilities District No. 2020-1 (Cooper Street Parking Structure)" (the "Maintenance CFD") was formed for the purpose of funding the operation and maintenance of the Parking Structure. Due to financial hardship, the POA has failed to adequately manage and maintain the Parking Structure. To ensure critical maintenance is performed consistently, the City recommends terminating the Management Agreement with the POA, resulting in the City assuming management. Benefits of the City's management are lower annual maintenance costs, and in turn, lower annual special taxes for property owners. Estimated annual savings are approximately $160,000. Failure of the POA to manage the Parking Structure means that a portion of the funding source for the maintenance of the Parking Structure will come from the backup maintenance special tax from the Vista Canyon CFD (subject to its maximum tax permitted as outlined in its approved Rate and Method of Apportionment) with the remaining source of funds from the Maintenance CFD. Page 2 Packet Pg. 11 O To spread out the obligation of the current special taxes being assessed for maintenance, staff recommends the current sole POA parcel that is subject to the maintenance CFD special tax be removed, and three additional parcels owned by the developer be annexed into the Maintenance CFD. A petition, consent and waiver for such actions has been received by the applicable property owners. Under an Amended and Restated Rate and Method of Apportionment (Amended RMA), the three annexing parcels will be subject to the special tax based on the management budget for the Parking Structure less any amounts received from the backup maintenance special tax. The special tax will be levied annually by the City pursuant to the RMA and used to pay for the operation and maintenance of the Parking Structure. On June 23, 2026, the Council adopted a resolution of intention to annex and consider the modifications to the Maintenance CFD. Scheduled for this meeting is a public hearing. Provided there is no majority protest, the annexation and changes will be the subject of an election. The landowners have waived election time lines, so an election may be held on this same evening to eliminate the POA parcel, annex three parcels, modify the rate and method, and authorize the levy of an annual special tax on the three parcels. Should the proposition pass with a two-thirds vote from the qualified voters, the City may adopt a resolution determining the validity of proceedings relating to the annexation and modifications to the Maintenance CFD and the Maintenance CFD may levy the annual special tax pursuant to the Amended RMA. The resolution will also approve agreements relating to the transfer of operation and maintenance of the Parking Structure from the POA to the City, including the following: Termination of Parking Management Services Agreement for Parking Structure I and Settlement Agreement: This document provides terms and conditions for the agreement termination which previously provided for the POA to manage, operate, and maintain the Parking Structure, and returns that responsibility to the City. The termination provides an accounting of funds to date and outlines settlement terms for delinquent special taxes. Total delinquent special taxes owed to the City, including penalties and interest as of July 1, 2026, is $1,514,380. As part of the settlement agreement, $976,320 of special taxes, penalties, and interest are proposed to be waived, resulting in a settlement owed to the City of $770,000. The $770,000 settlement will be paid in four equal installments the first of each month beginning August 1, 2026 and ending November 1, 2026. The settlement will fund operating and maintenance costs for FY 2026-27 and ensure the City has sufficient fund balance available July 1, 2027, to fund FY 2027-28 costs. The future funding for the operation and maintenance of the Parking Structure will be from backup special taxes of the Vista Canyon CFD, the modified Maintenance CFD, and the easement owner of the 84 private spaces. Amendment and Restatement to Easement Agreement for Parking Spaces: This document amends the agreement which provided for Vista Canyon Ranch to purchase from the City certain perpetual easements at the Parking Structure for the use of 84 parking spaces required for residential parking for adjacent multi -family uses at a purchase price equal to the construction cost of those 84 spaces. The Amendment reflects the transfer of operation and maintenance of the Parking Structure from the POA as manager to the City, but keeps intact the grant of a perpetual easement of the 84 private spaces to Vista Canyon Ranch and the responsibility of Vista Canyon Ranch to pay for the operation and maintenance of such spaces. The document will be executed by the City as grantor and Vista Canyon Ranch as grantee. Page 3 Packet Pg. 12 O Termination of Easement Agreement for Solar Facilities and Community Identification Signage: This document provides for the termination of the agreement in which the City granted to Vista Canyon Ranch certain easements at the Parking Structure allowing Vista Canyon Ranch to construct, operate, and maintain solar facilities on the Parking Structure. The agreement will be executed by the City and Vista Canyon Ranch and recorded with the County Recorder. ALTERNATIVE ACTION Other action as determined by the City Council. FISCAL IMPACT All expenses associated with the above changes to the Maintenance CFD will be part of the budget for the Maintenance CFD. As a result of the City maintaining the parking structure, maintenance expenditures are anticipated to decrease by approximately $160,000 annually, which in turn reduces annual special taxes for property owners. The $770,000 settlement for delinquent special taxes will fund operating and maintenance costs for FY 2026-27 and ensure the City has sufficient fund balance available July 1, 2027, to fund FY 2027-28 costs. Upon approval of the recommended action, the total estimated $335,910 annual cost to operate and maintain the Cooper Street Parking Structure will be funded by: 1) the CFDs for the public share (529 parking spaces or 86 percent) via the Maintenance CFD special tax ($207,190) and the backup Vista Canyon CFD maintenance special tax ($106,033); and 2) Vista Canyon Ranch for its private share (84 parking spaces or 14 percent) of operations and maintenance ($22,687). ATTACHMENTS Notice of Public Hearing Resolution Determining the Validity of Prior Proceedings and Calling a Special Election - CFD No. 2020-1 (Cooper Street Parking Structure) Resolution Canvassing Election - CFD No. 2020-1 (Cooper Street Parking Structure) Resolution of Annexation and Change - CFD No. 2020-1 (Cooper Street Parking Structure) Amended CFD No. 2020-1 (Cooper Street Parking Structure) Report (available in the City Clerk's Reading File) Termination of Parking Management Services Agreement and Settlement Agreement (available in the City Clerk's Reading File) Amended and Restated Easement Agreement for Parking Spaces (available in the City Clerk's Reading File) Termination Agreement for Solar Facilities and Community Identifcation Signage (available in the City Clerk's Reading File) Page 4 Packet Pg. 13 1.a CITY OF SANTA CLARITA NOTICE OF PUBLIC HEARING ON THE ANNEXATION OF PROPERTY INTO COMMUNITY FACILITIES DISTRICT NO. 2020-1 (COOPER STREET PARKING STRUCTURE), CERTAIN MODIFICATIONS TO SAID DISTRICT AND LEVY OF SPECIAL TAXES WITHIN THE AMENDED CFD A Public Hearing will be held by the City Council of the City of Santa Clarita acting as the legislative body of the City of Santa Clarita Community Facilities District No. 2020-1 (Cooper Street Parking Structure) (the "CFD"), in the City Hall Council Chambers, 23920 Valencia Boulevard, 1st floor, Santa Clarita, California, on the 14t' day of July 2026, at or after 6:00 p.m. to consider the annexation of property into the CFD, including the levy of special taxes, and consideration of certain modifications to the CFD. On the 23rd day of June 2026, the Council adopted Resolution No. 26-38 stating its intention to annex property into the CFD, including the levy of special taxes, and to consider certain modifications to the CFD. A summary of such resolution is attached hereto. At the hearing, the testimony of all interested persons or taxpayers for or against the annexation or modifications to the CFD will be heard. If 50% or more of the registered voters or six registered voters, whichever is more, residing within the existing CFD, or if 50% or more of the registered voters or six registered voters, whichever is more, residing within the proposed annexation area, or if the owners of one- half or more of the area of land in the territory included in the existing CFD, or if the owners of one-half or more of the area of land proposed to be annexed to the CFD, file written protests against the proposed annexation of territory or modifications to the CFD, and protests are not withdrawn so as to reduce the value of the protests to less than a majority, no further proceedings to annex the property, levy the special tax or modify the CFD, no further proceedings to annex the property, levy the special tax or modify the CFD, as applicable, shall be taken for a period of one year from the date of decision of the Council. Absent a majority protest, the Council will call a special election for the proposed annexation and modifications to the CFD. The voting procedure shall be conducted by mailed or hand delivered ballot election. Proponents, opponents, and any interested persons may appear and be heard on this matter at that time. Further information may be obtained by contacting the Administrative Services Department, 23920 Valencia Boulevard, Suite 295, Santa Clarita, CA, 91355; (661) 255-4996, Brittany Houston, Finance Manager. If you wish to challenge this action in court, you may be limited to raising only those issues you or someone else raised at the public hearing described in this notice, or in written correspondence delivered to the City Council, at, or prior to, the public hearing. Dated: July 1, 2026 Melody Bartlette City Clerk Publish Date: The Signal — Tuesday, July 7, 2026 Packet Pg. 14 1.a ATTACHMENT A SUMMARY OF RESOLUTION NO. 26-38 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA CLARITA, CALIFORNIA, ACTING AS THE LEGISLATIVE BODY OF THE CITY OF SANTA CLARITA COMMUNITY FACILITIES DISTRICT NO. 2020-1 (COOPER STREET PARKING STRUCTURE), DECLARING ITS INTENTION TO ANNEX CERTAIN PARCELS INTO SAID DISTRICT, AND CONSIDERING CERTAIN MODIFICATIONS TO SAID DISTRICT In accordance with the Mello -Roos Community Facilities Act of 1982, as amended, commencing with Section 53311 of the Government Code of the State of California (the "Act"), in 2020, the City Council (the "City Council") of the City of Santa Clarita (the "City"), formed the City of Santa Clarita Community Facilities District No. 2020-1 (Cooper Street Parking Structure) (the "District"), for the purpose of financing certain public services, including operation and maintenance of a public parking structure located at 17265 Rouse Place in the City of Santa Clarita, commonly known as the Cooper Street Parking Structure (the "Services"). On January 26, 2021, an election was held within the District in which the eligible voters approved by more than two-thirds vote the proposition of levying a special tax within the District. On February 9, 2021, the City Council, acting as the legislative body of the District, adopted Ordinance No. 21-02 relating to the District and authorizing the levy of the special tax for the Services (the "Special Tax"). The City has received petitions to annex certain parcels to the District and modify the District by amending the rate and method of apportionment (the "Original RMA") and removing the current parcel from the District. The City Council hereby determines to institute proceedings for the annexation of certain parcels to the District and the modification of the District by amending the Original Rate and Method and removing the current parcel from the District, under the terms of the Act. The exterior boundaries of the area to be annexed consisting of three parcels ("Annexation No. 1") and the removal of the current parcel are specified and described on that certain map now on file in the office of the City Clerk entitled "Amended Boundary Map - Annexation Map No. 1 — City of Santa Clarita Community Facilities District No. 2020-1 (Cooper Street Parking Structure)," which map indicates by a boundary line the extent of the territory included in Annexation No. 1 and the removal of the current parcel, and following the election, shall govern for all details as to the extent of the District, including Annexation No. 1. Except where funds are otherwise available, it is the intention of the City Council to levy annually, in perpetuity, in accordance with procedures contained in the Act, the Special Tax sufficient to finance the cost of providing the Services, the costs of administering the levy and collection of the Special Tax and all other costs of the levy of the Special Tax, including any Packet Pg. 15 1.a foreclosure proceedings, legal, fiscal, and financial consultant fees, election costs, and all other administrative costs of the tax levy. The Special Tax will be secured by the recordation of a continuing lien against all taxable and nonexempt real property in the District, including Annexation No. 1. Due to the proposed Annexation No. 1 and the removal of the current parcel within the District, the Original RMA and manner of collection of the Special Tax is proposed to be amended as described in detail and set forth in Exhibit "A" attached to the Resolution of Intention (the "Amended and Restated RMA"). The Amended and Restated RMA provides sufficient detail to allow each owner of nonexempt real property within the District, including the proposed Annexation No. 1, to estimate the maximum amount that such person will have to pay for the Services. The Special Tax is apportioned to each parcel on the foregoing basis pursuant to Section 53325.3 of the Act and as described in the Amended and Restated RMA and such Special Tax is not levied on or based upon the value or ownership of real property. Upon recordation of an amended notice of special tax lien pursuant to Section 3114.5 of the Streets and Highways Code of the State of California, a continuing lien to secure each levy of the Special Taxes shall attach to all nonexempt real property in the District, including Annexation No. 1, and that lien shall continue in force and effect until collection of the Special Taxes ceases. Pursuant to Section 53340 of the Act, and except as provided in Section 53317.3 of the Act, properties of entities of the state, federal, and local governments shall be exempt from the levy of the Special Tax. Each City officer who is responsible for the District, and the proposed Annexation No. 1, if annexed, is hereby directed to study the proposed Annexation No. 1 and the proposed modifications to the District and, at or before the time of the above -mentioned Hearing, file a report with the City Council, and which is to be made a part of the record of the Hearing, containing a brief description of the proposed Annexation No. 1 and the proposed modifications to the District and his or her estimate of the cost of providing the Services within the boundary of the District, including Annexation No. 1. The Director of Administrative Services is directed to estimate or cause the estimation of the fair and reasonable cost of all incidental expenses, including all costs associated with the Annexation No. 1 and the modifications to the District, determination of the amount of any Special Taxes, collection of any Special Taxes, or costs otherwise incurred in order to carry out the authorized purposes of the City with respect to the District. The City may accept advances of funds from any sources, including private persons or private entities, and is authorized and directed to use such funds for any authorized purpose, including any cost incurred by the City in the proposed Annexation to the District. The City may enter into an agreement to repay all of such funds as are not expended or committed for any authorized purpose at the time of the election on the levy of the Special Tax, if the proposal to levy such tax should fail, and at its option to repay any or all of such funds advanced if the levy of the Special Tax shall be approved by the qualified electors of the District. The voting procedure for the annexation and modifications to the District shall be conducted by mailed or hand delivered ballot election as described in the Resolution of Intention. Packet Pg. 16 1.b RESOLUTION NO. 26- 0 E L a A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA r L CLARITA, CALIFORNIA, ACTING AS THE LEGISLATIVE BODY OF THE C2 CITY OF CITY OF SANTA CLARITA COMMUNITY FACILITIES DISTRICT L Q. NO. 2020-1 (COOPER STREET PARKING STRUCTURE), DETERMINING °o THE VALIDITY OF PRIOR PROCEEDINGS RELATING TO THE v ANNEXATION OF PROPERTY INTO SAID DISTRICT AND CERTAIN c MODIFICATIONS TO SAID DISTRICT, AND CALLING A SPECIAL N ELECTION RELATED THERETO ,; WHEREAS, the City Council (the "City Council") of the City of Santa Clarita (the "City") has heretofore formed the City of Santa Clarita Community Facilities District No. 2020-1 (Cooper Street Parking Structure) (the "District") pursuant to the Mello -Roos Community Facilities Act of 1982, as amended, commencing with Section 53311 of the Government Code of the State of California (the "Act"), pursuant to the Mello -Roos Community Facilities Act of 1982, as amended, commencing with Section 53311 of the Government Code of the State of California (the "Act"), to finance certain public services, including operation and maintenance of a public parking structure located at 17265 Rouse Place in the City of Santa Clarita, commonly known as the Cooper Street Parking Structure (the "Services"); and WHEREAS, the City Council, acting as the legislative body of the District, has heretofore adopted Resolution No. 26-38 (the "Resolution of Intention to Annex and Consider Modifications") stating its intention to annex certain property to the District consisting of three parcels ("Annexation No. 1") and modify the District by amending the rate and method of apportionment (the "Original RMA") and removing the current parcel from the District; and WHEREAS, a copy of the Resolution of Intention to Annex and Consider Modifications, incorporating a description and amended map of the proposed boundaries of the District, including Annexation No. 1, and setting forth the amended and restated rate and method of apportionment (the "Amended and Restated RMA") and manner of collection of the special tax to be levied within the District, is on file with the City Clerk and incorporated herein by reference; and WHEREAS, the Resolution of Intention to Annex and Consider Modifications set July 14, 2026, as the date of the public hearing on the annexation of Annexation No. 1 to the District and proposed modifications to the District, and this City Council held said noticed hearing as required by law; and WHEREAS, prior to the commencement of the public hearing, there was filed with the City Council a Community Facilities Report prepared by Harris & Associates (the "CFD Annexation Report") containing a boundary map of proposed Annexation No. 1 and removal of the current parcel within the District, a description of the Services, an estimate of the cost of the Services and incidental expense to be financed by properties within the District, including Annexation No. 1, and the CFD Annexation Report has been reviewed by the City Council and is incorporated herein and made a part of the record of the public hearing; and Page 1 of 4 Packet Pg. 17 1.b 0 WHEREAS, at said public hearing, all persons desiring to be heard on the matters E pertaining to the annexation of Annexation No. 1 to the District and the proposed modifications a. to the District were heard and a fair hearing was held; and m L WHEREAS, at said public hearing evidence was presented to the City Council on said CLO matters before it, and the City Council at the conclusion of said public hearing is fully advised in C. the premises. �0 NOW, THEREFORE, the City Council of the City of Santa Clarita, California, acting as c the legislative body of the City of Santa Clarita Community Facilities District No. 2020-1 N (Cooper Street Parking Structure), does hereby resolve as follows: c SECTION 1. Pursuant to 53325.1(b) of the Act, the City Council hereby finds and determines that the proceedings prior hereto were valid and in conformity with the requirements of the Act. SECTION 2. Written protests against the annexation of Annexation No. 1 to the District and the modifications to the District, or against the furnishing of the Services or the levying of a specified special tax within the District, have not been filed by fifty percent (50 percent) or more of the registered voters or property owners of one-half (1/2) or more of the area of land within the existing District or Annexation No. 1. SECTION 3. The description and amended map of the proposed boundaries of the District as shown on the map entitled "Amended Boundary Map — Annexation Map No. 1 — City of Santa Clarita Community Facilities District No. 2020-1 (Cooper Street Parking Structure)," on file in the City Clerk's office and as described in the Resolution of Intention to Annex and Consider Modifications, and incorporated herein by reference, shall be the boundaries of the District following the election. The amended map of the proposed boundaries of the District has been recorded in the Office of the County Recorder of Los Angeles County, California (Book of Maps of Assessment and Community Facilities Districts at page ) as Instrument No. 2026- SECTION 4. Except where funds are otherwise available, it is the intention of the City Council to levy annually, in perpetuity, in accordance with procedures contained in the Act, a special tax (the "Special Tax") sufficient to finance the cost of providing the Services, the costs of administering the levy and collection of the Special Tax and all other costs of the levy of the Special Tax, including any foreclosure proceedings, legal, fiscal, and financial consultant fees, election costs, and all other administrative costs of the tax levy. The Amended and Restated RMA and manner of collection is described in detail in Exhibit "A" attached to the Resolution of Intention to Annex and Consider Modifications and incorporated herein by this reference. SECTION 5. Upon recordation of an amended notice of special tax lien pursuant to Section 3114.5 of the California Streets and Highways Code, a continuing lien to secure each levy of the Special Tax shall attach to all taxable and nonexempt real property in the District, including Annexation No. 1, and this lien shall continue in force and effect until the special tax obligation is cancelled in accordance with law or until collection of the tax by the District ceases Page 2 of 4 Packet Pg. 18 1.b SECTION 6. The City Council finds that the Services are necessary to meet the increased demand put upon the City as a result of development within the District, including Annexation No. 1. SECTION 7. The City Council finds that there is not an ad valorem property tax currently being levied on the property within the District, including Annexation No. 1, for the exclusive purpose of financing services similar to the Services. SECTION 8. Pursuant to Government Code Section 53353.5, the City Council hereby submits to the qualified electors of Annexation No. 1, a proposition (the "Proposition") to annex to the District Annexation No. 1 and be authorized to levy special taxes with Annexation No. 1 as set forth in the Amended and Restated Rate and Method of Apportionment, and modify the District, including amending the rate and method of apportionment and removal of a parcel, to finance the Services. The Proposition is attached as Exhibit "A." SECTION 9. A special election is hereby called for the District on the Proposition set forth in Section 8 above. SECTION 10. The City Council hereby directs that the election be conducted by the City Clerk of the City of Santa Clarita, as the elections official. SECTION 11. The time for notice having been waived by the qualified electors, the date of the special election for the District on the Proposition shall be on the 14th day of July, 2026. The voter ballots shall be returned to the City Clerk at 23920 Valencia Blvd., Suite 120, Santa Clarita, CA 91355, no later than 11:00 o'clock p.m. on July 14, 2026. However, the election may be closed within the concurrence of the City Clerk, as soon as the ballots are returned. SECTION 12. The City Council finds and determines that there were no registered voters residing within the territory of the District, including Annexation No. 1, at the time of the protest hearing and ninety (90) days prior thereto, there being less than 12 landowners in the District, including Annexation No. 1, and the requirements of Section 53326 of the Act having been waived by all landowners, the ballot for the special election shall be hand delivered to the landowner within Annexation No. 1. Each landowner shall have one vote for each acre or portion thereof that it owns within Annexation No. 1, as provided by Section 53326 of the Act. SECTION 13. Notice of said election and written argument for or against the measure have been waived by the landowners. SECTION 14. Annexation No. 1 shall constitute a single election precinct for the purpose of holding said election. SECTION 15. The City Clerk is directed to certify and attest to this resolution and to take any and all necessary acts to call, hold, canvass and certify an election or elections on the levy of the annexation of Annexation No. 1 and the modifications to the District. SECTION 16. This resolution shall take effect immediately upon its adoption. Page 3 of 4 0 c L a m m L co L 4) Q. 0 0 U 0 N 0 N Packet Pg. 19 1.b PASSED, APPROVED, AND ADOPTED this 141h day of July, 2026. MAYOR ATTEST: CITY CLERK DATE: STATE OF CALIFORNIA ) COUNTY OF LOS ANGELES ) ss. CITY OF SANTA CLARITA ) I, Melody Bartlette, City Clerk of the City of Santa Clarita, do hereby certify that the foregoing Resolution No. 26- was duly adopted by the City Council of the City of Santa Clarita, acting as the legislative body of the City of Santa Clarita Community Facilities District (Cooper Street Parking Structure), at a regular meeting thereof, held on the 14th day of July, 2026, by the following vote: AYES: COUNCILMEMBERS: NOES: COUNCILMEMBERS: ABSENT: COUNCILMEMBERS: Page 4 of 4 CITY CLERK Packet Pg. 20 1.b c EXHIBIT A a r m m L OFFICIAL BALLOT CO) L Q. CITY OF SANTA CLARITA °o COMMUNITY FACILITIES DISTRICT NO.2020-1 v (COOPER STREET PARKING STRUCTURE) c N O N SPECIAL ELECTION FOR ANNEXATION NO. 1 AND MODIFICATIONS TO THE DISTRICT July 14, 2026 To vote, mark an "X" in the voting square after the word "YES" or after the word "NO." All marks otherwise made are forbidden. This ballot is provided to , as owner or authorized representative of such owner of land within proposed Annexation No. 1 to the City of Santa Clarita Community Facilities District No. 2020-1 (Cooper Street Parking Structure), and represents votes. If you wrongly mark, tear, or deface this ballot, return it to the City Clerk of the City of Santa Clarita at 23920 Valencia Blvd., Suite 300, Santa Clarita, CA 91355. PROPOSITION: Shall the City of Santa Clarita Community Facilities District No. 2020-1 (the "District"), annex property known as Annexation No. 1 and be authorized to levy special taxes with Annexation No. 1 as set forth in the Amended and Restated Rate and Method of Apportionment, and modify the District, including amending the rate and method of apportionment and removal of a parcel, to finance the authorized services, all in accordance with the terms of the Resolution of Intention to Annex and Consider Modifications adopted on June 23, 2026? YES NO A-1 Packet Pg. 21 1.c RESOLUTION NO. 26- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA CLARITA, CALIFORNIA, ACTING AS THE LEGISLATIVE BODY OF THE CITY OF SANTA CLARITA COMMUNITY FACILITIES DISTRICT NO. 2020-1 (COOPER STREET PARKING STRUCTURE), CANVASSING THE RESULTS OF THE ELECTION HELD WITHIN SAID DISTRICT WHEREAS, the City Council (the "City Council") of the City of Santa Clarita (the "City") has previously conducted proceedings pursuant to the Mello -Roos Community Facilities Act of 1982, as amended, commencing with Section 53311 of the Government Code of the State of California (the "Act"), pertaining to the annexation of certain property ("Annexation No. 1") into the City of Santa Clarita Community Facilities District No. 2020-1 (Cooper Street Parking Structure) (the "District"), and modifications to the District, including amending the rate and method of apportionment of a special tax (the "Special Tax") to finance the cost of providing certain public services (the "Services"), and the calling of an election in regard to the foregoing; and WHEREAS, the landowners of record within Annexation No. 1 and the existing District as of the close of the public hearing held on July 14, 2026, unanimously consented to a waiver of the time limits for setting the election and a waiver of any written analysis, arguments or rebuttals as set forth in California Government Code sections 53326 and 53327. Such waivers are set forth in the written petition executed by the landowners which is on file with the City Clerk as the election official (the "Election Official"), which Election Official has concurred with the waiver of time limits; and WHEREAS, on July 14, 2026, an election was held within Annexation No. 1 relative to the annexation and modifications to the District and authorization of the levy of the Special Tax pursuant to the amended and restated rate and method of apportionment; and WHEREAS, there has been presented to the City Council a Certificate of the Election Official as to the Results of the Canvass of the Election Returns (the "Certificate of the Election Official"), a copy of which is attached hereto as Exhibit "A"; and WHEREAS, at such election the proposal for the annexation of Annexation No. 1 into the District, the modification to the District, and the levying of the Special Tax pursuant to the amended and restated rate and method of apportionment was approved by the requisite two thirds (2/3) of the votes cast by qualified electors. NOW, THEREFORE, the City Council of the City of Santa Clarita, California, acting as the legislative body of the City of Santa Clarita Community Facilities District No. 2020-1 (Cooper Street Parking Structure), does resolve as follows: SECTION 1. It is hereby determined that the election conducted within Annexation No. 1 was duly and validly conducted. Page 1 of 3 Packet Pg. 22 1.c SECTION 2. The canvass of the votes cast at the special election held in Annexation No. 1 on July 14, 2026, as shown in the Certificate of the Election Official attached hereto, is approved and confirmed. SECTION 3. The Proposition presented to the qualified electors for receipt by the Election Official on July 14, 2026, has carried. SECTION 4. The City Council, acting as the legislative body of the District, is authorized to levy the Special Tax on behalf of the District, as specified in the Resolution of Annexation and Change adopted by the City Council on July 14, 2026. SECTION 5. This Resolution shall take effect immediately upon its adoption. PASSED, APPROVED, AND ADOPTED this 141h day of July, 2026. ATTEST: CITY CLERK DATE: Page 2 of 3 MAYOR Packet Pg. 23 1.c STATE OF CALIFORNIA ) COUNTY OF LOS ANGELES ) ss. CITY OF SANTA CLARITA ) I, Melody Bartlette, City Clerk of the City of Santa Clarita, do hereby certify that the foregoing Resolution No. 26- was duly adopted by the City Council of the City of Santa Clarita, acting as the legislative body of the City of Santa Clarita Community Facilities District No. 2020-1 (Cooper Street Parking Structure), at a regular meeting thereof, held on the 14th day of July 2026, by the following vote: AYES: COUNCILMEMBERS: NOES: COUNCILMEMBERS: ABSENT: COUNCILMEMBERS: Page 3 of 3 CITY CLERK Packet Pg. 24 1.c EXHIBIT A CITY OF SANTA CLARITA COMMUNITY FACILITIES DISTRICT NO.2020-1 (COOPER STREET PARKING STRUCTURE) CERTIFICATE OF THE ELECTION OFFICIAL AS TO THE RESULTS OF THE CANVASS OF THE ELECTION RETURNS STATE OF CALIFORNIA ) COUNTY OF LOS ANGELES ) ss. CITY OF SANTA CLARITA ) I, MELODY BARTLETTE, City Clerk in my capacity as Elections Official in the City of Santa Clarita, California, in its capacity as the legislative body of the City of Santa Clarita Community Facilities District No. 2020-1 (Cooper Street Parking Structure) (the "District"), DO HEREBY CERTIFY, that pursuant to the provisions of Section 53325.4 of the Government Code and Division 15, commencing with Section 15000 of the Elections Code of the State of California, I did canvass the return of the votes cast at the Special Election for Annexations and Change on July 14, 2026, held in the Council Chambers at 23920 Valencia Blvd. Santa Clarita, CA 91355. CITY OF SANTA CLARITA COMMUNITY FACILITIES DISTRICT NO. 2020-1 (COOPER STREET PARKING STRUCTURE) I FURTHER CERTIFY that the Statement of All Votes Cast, to which this certificate is attached, shows the total number of ballots cast within the property within the District for the Proposition, and the totals of the respective columns and the totals as shown for the Proposition are full, true and correct. WITNESS my hand and Official Seal this 14th day of July, 2026. CITY OF SANTA CLARITA, CALIFORNIA, acting as the LEGISLATIVE BODY OF THE CITY OF SANTA CLARITA COMMUNITY FACILITIES DISTRICT NO. 2020-1 (COOPER STREET PARKING STRUCTURE) MELODY BARTLETTE, City Clerk A-1 Packet Pg. 25 1.c CITY OF SANTA CLARITA COMMUNITY FACILITIES DISTRICT NO.2020-1 (COOPER STREET PARKING STRUCTURE) STATEMENT OF ALL VOTES CAST SPECIAL ELECTION FOR ANNEXATION AND CHANGE July 14, 2026 Qualified Landowner Votes Votes Cast YES NO A-2 Packet Pg. 26 1.d RESOLUTION NO. 26- A RESOLUTION OF THE CITY OF SANTA CLARITA, CALIFORNIA, ACTING ON BEHALF OF ITSELF AND AS THE LEGISLATIVE BODY OF THE CITY OF SANTA CLARITA COMMUNITY FACILITIES DISTRICT NO. 2020-1 (COOPER STREET PARKING STRUCTURE), APPROVING CERTAIN MODIFICATIONS TO SAID DISTRICT, ANNEXING ANNEXATION NO. 1 TO SAID DISTRICT AND AUTHORIZING THE LEVY OF A SPECIAL TAX WITHIN ANNEXATION NO. 1 AND APPROVING CERTAIN AGREEMENTS RELATING TO THE TRANSFER OF OPERATION AND MAINTENANCE OF THE COOPER STREET PARKING STRUCTURE TO THE CITY WHEREAS, the City Council (the "City Council") of the City of Santa Clarita (the "City") has previously conducted proceedings pertaining to certain modifications and annexations to the City of Santa Clarita Community Facilities District No. 2020-1 (Cooper Street Parking Structure) (the "District"), pursuant to the Mello -Roos Community Facilities Act of 1982, as amended, commencing with Section 53311 of the Government Code of the State of California (the "Act"), to finance certain public services, including operation and maintenance of a public parking structure located at 17265 Rouse Place in the City of Santa Clarita, commonly known as the Cooper Street Parking Structure (the "Services"); and WHEREAS, the City Council called and duly held a special election in the District pursuant to Resolution No. 26- (the "Resolution Calling Election") adopted on July 14, 2026, for the purpose of presenting to the qualified electors the District a proposition (the "Proposition") on the annexation of certain parcels to the District and the removal of the current parcel from the District, and the modification of the District by amending the Original Rate and Method as set forth in an amended and restated rate and method of apportionment (the "Amended and Restated RMA"), all in accordance with the terms of Resolution No. 26-38 adopted on June 23, 2026 (the "Resolution of Consideration"); and WHEREAS, pursuant to the terms of the Resolution Calling Election and the provisions of the Act, the special election was held on July 14, 2026; and WHEREAS, at such election the Proposition for making such modifications was approved by the qualified electors of the District; and WHEREAS, on February 9, 2021, the City Council, acting as the legislative body of the District, adopted Ordinance No. 21-02 (the "Ordinance") pursuant to Section 53340 of the Act, which Ordinance authorized the levy of a special tax for the Services within the District for the original area and any annexations to the District; and WHEREAS, there have been submitted to this Council certain documents providing for termination of the management of the Cooper Street Parking Structure by Vista Canyon Master Association, a California non-profit mutual benefit corporation (the "POA" ), and Page 1 of 5 Packet Pg. 27 1.d the transfer of the operation and maintenance to the City, and this Council, with the aid of its staff, has reviewed said documents and found them to be in proper order. NOW, THEREFORE, the City Council of the City of Santa Clarita, California, acting on behalf of itself and as the legislative body of the City of Santa Clarita Community Facilities District No. 2020-1 (Cooper Street Parking Structure) as applicable, does hereby resolve as follows: SECTION 1. The above recitals are true and correct. SECTION 2. The exterior boundaries of the annexation area ("Annexation No. 1") and the removal of the original parcel are specified and described on that certain map entitled "Amended Boundary Map — Annexation Map No. 1 — City of Santa Clarita Community Facilities District No. 2020-1 (Cooper Street Parking Structure)," (the "Restated Map"). The Restated Map indicates by a boundary line the extent of the territory included in Annexation No. 1, and shall govern for all details as to the extent of the District. Annexation No. 1 is hereby annexed into the District and hereafter all references to the District shall include Annexation No. 1. The removal of the original parcel of the District is hereby approved and confirmed. SECTION 3. The Restated Map, describing the boundaries of the District, is on file in the City Clerk's office and as described in the Resolution of Consideration and incorporated herein by reference. The Restated Map, which eliminated the previous parcel and added Annexation No. 1, is hereby approved and shall be the boundaries of the District. The Restated Map shall supersede all previously recorded maps. The Restated Map has been recorded in the Office of the County Recorder of Los Angeles County, California (Book of Maps of Assessment and Community Facilities Districts at page ) as Document No. 2026- SECTION 4. The purpose for which the District was formed has not changed, which purpose is to finance the Services. SECTION 5. Except where funds are otherwise available, in order to finance the Services, the City Council shall levy annually, in perpetuity, in accordance with procedures contained in the Act, against all taxable and nonexempt real property in the District, including Annexation No. 1, the Special Tax sufficient to finance the cost of providing the Services, the costs of administering the levy and collection of the Special Tax and all other costs of the levy of the Special Tax, including any foreclosure proceedings, legal, fiscal, and financial consultant fees, election costs, and all other administrative costs of the tax levy, including a reasonable reserve. The rate and method of apportionment and manner of collection of the Special Tax is described in detail in the Amended and Restated RMA attached hereto as Exhibit "A" and incorporated herein by this reference. The Amended and Restated RMA allows each landowner within the District to estimate the maximum amount that may be levied against each parcel. Page 2 of 5 Packet Pg. 28 1.d The City Council hereby determines the Amended and Restated RMA to be reasonable. The Special Tax is apportioned to each parcel on the foregoing basis pursuant to Section 53325.3 of the Act and the Special Tax is not based upon the value or ownership of real property. In the event that a portion of the property within the District shall become for any reason exempt, wholly or partially, exempt from the levy of the Special Tax, the City Council shall, on behalf of the District, cause the levy to be increased, subject to the limitation of the maximum special tax for a parcel as set forth in the Amended and Restated RMA to the extent necessary upon the remaining property within the District which is not delinquent or exempt in order to yield the special tax revenues required for the purposes described herein. Upon recordation of an amended notice of special tax lien pursuant to Section 3114.5 of the Streets and Highways Code of the State of California, a continuing lien to secure each levy of the Special Tax shall attach to all nonexempt real property in the District, including Annexation No. 1, and that lien shall continue in force and effect until collection of the Special Tax ceases. SECTION 6. The City Council finds that the Services are necessary to meet the increased demand put upon the City as a result of the development within the District. SECTION 7. This resolution shall constitute a Resolution of Annexation and/or a Resolution of Change within the meaning of the Ordinance, and Annexation No. 1 shall be subject to the terms of the Ordinance. SECTION 8. Pursuant to and in compliance with the provisions of Government Code Section 50075.1, the City Council hereby continues the following accountability measures pertaining to the levy by the District of the Special Tax described in Section 5 above: Such Special Tax shall be levied for the specific purposes set forth in Section 5 hereof. b. The proceeds of the levy of such Special Tax shall be applied only to the specific purposes set forth in Section 5 hereof. The District shall establish accounts into which the proceeds of such Special Tax shall be deposited. d. The Director of Administrative Services, or his or her designee, acting for and on behalf of the District, shall annually file a report with the City Council as required pursuant to Government Code 50075.3. SECTION 9. The Office of the Director of Administrative Services, the City of Santa Clarita, 23920 Valencia Blvd., Suite 295, Santa Clarita, California 91355, (661) 255-4920, or its designee, is designated to be responsible for preparing annually a current roll of special tax levy obligations by assessor's parcel number and for estimating future special tax levies pursuant to Section 53340.1 of the Government Code. SECTION 10. The City Clerk is hereby directed and authorized to record notice of the Special Tax by recording an Amended and Restated Notice of Special Tax Lien of City of Santa. Page 3 of 5 Packet Pg. 29 1.d Clarita Community Facilities District No. 2020-1 (Cooper Street Parking Structure) in the office of the County Recorder of the County of Los Angeles within fifteen (15) days of the date hereof pursuant to Section 3114.5 of the California Streets and Highways Code. SECTION 11. The City Clerk shall record a notice of cessation of special tax for the parcel excluded from the boundaries of the District in the office of the County Recorder of the County of Los Angeles pursuant to Sections 53330.5 and 53338.5 of the Act and Section 3114.5 of the California Streets and Highways Code. SECTION 12. The City hereby approves the Termination of the Parking Management Services Agreement for Parking Structure 1 and Settlement Agreement, by and among the City, the POA, Vista Canyon Ranch, LLC, VC Lincoln I LLC, and Vista Canyon Phase I LLC (the "Parking Management Services Termination Agreement"), in substantially the form presented to this Council and on file with the City Clerk. The City Manager or designee is hereby authorized to execute the Termination of Parking Management Services Termination Agreement with such revisions, amendments and completions as shall be approved by the City Manager or designee, subject to City Attorney review. SECTION 13. The City hereby approves the Amendment and Restatement to the Parking Spaces Easement Agreement, by and between the City and Vista Canyon Ranch LLC (the "Amended and Restated Parking Easement Agreement"), in substantially the form presented to this Council and on file with the City Clerk. The City Manager or designee is hereby authorized to execute the Amended and Restated Parking Easement Agreement with such revisions, amendments and completions as shall be approved by any City Manager or designee, subject to City Attorney review. SECTION 14. The City hereby approves the Termination of Easement Agreement for Solar Facilities and Community Identification Signage Agreement by and between the City and Vista Canyon Ranch LLC (the "Solar and Signage Easement Termination Agreement"), in substantially the form presented to this Council and on file with the City Clerk. The City Manager or designee is hereby authorized to execute the Solar and Signage Easement Termination Agreement with such revisions, amendments and completions as shall be approved by the City Manager or designee, subject to City Attorney review. SECTION 15. The City Manager or designee is hereby authorized and directed, for and in the name and on behalf of the City or District, as applicable, to do any and all things and take any and all other actions, including the execution and delivery of any and all assignments, certificates, requisitions, agreements, notices, consents, instruments of conveyance, warrants and other documents, which they, or any of them, deem necessary or advisable in order to consummate the transactions as described herein. SECTION 16. This resolution shall take effect immediately upon its adoption. Page 4 of 5 Packet Pg. 30 1.d PASSED, APPROVED, AND ADOPTED this 141h day of July 2026. MAYOR ATTEST: CITY CLERK DATE: STATE OF CALIFORNIA ) COUNTY OF LOS ANGELES ) ss. CITY OF SANTA CLARITA ) I, Melody Bartlette, City Clerk of the City of Santa Clarita, do hereby certify that the foregoing Resolution No. 26- was duly adopted by the City Council of the City of Santa Clarita, acting as the legislative body of the City of Santa Clarita Community Facilities District No. 2020-1 (Cooper Street Parking Structure), at a regular meeting thereof, held on the 14th day of July 2026, by the following vote: AYES: COUNCILMEMBERS: NOES: COUNCILMEMBERS: ABSENT: COUNCILMEMBERS: Page 5 of 5 CITY CLERK Packet Pg. 31 1.d EXHIBIT A AMENDED AND RESTATED RATE AND METHOD OF APPORTIONMENT FOR CITY OF SANTA CLARITA COMMUNITY FACILITIES DISTRICT NO. 2020-1 (COOPER STREET PARKING STRUCTURE) A Special Tax as hereinafter defined shall be levied on all Assessor's Parcels in City of Santa Clarita Community Facilities District No. 2020-1 (Cooper Street Parking Structure) ("CFD No. 2020-1" or "CFD") and collected each Fiscal Year commencing in Fiscal Year 2026-27, in an amount determined bythe Council or its designee, through the application of the Rate and Method of Apportionment ("RMA"), as described below. All of the real property in CFD No. 2020-1, unless exempted by law or by the provisions hereof, shall be taxed for the purposes, to the extent and in the manner herein provided. DEFINITIONS The terms hereinafter set forth have the following meanings: "Act" means the Mello -Roos Community Facilities Act of 1982, as amended, being Chapter 2.5, Division 2 of Title 5 of the Government Code of the State of California. "Adjusted Parcel Area" means the adjusted land area that is assigned to Taxable Parcel(s) for purposes of determining the Maximum Special Tax whenever there is a Change in Total Parcel Area. "Administrative Expenses" means the following actual or reasonably estimated costs directly related to the administration of CFD No. 2020-1 that are not included in the Direct Operating Costs. This includes, without limitation, the costs of computing the Special Taxes and preparing the annual Special Tax collection schedules (whether by the City or designee thereof or both); collecting the Special Taxes (whether by the City or otherwise); responding to inquiries regarding the Special Taxes; costs of the City, CFD No. 2020-1 or any designee thereof related to an appeal of any Special Tax levy; and the City's annual administration fees and third party expenses. "Annual Budget" means the budget approved or determined by the City for CFD No. 2020-1 for a Fiscal Year, including the estimated costs of providing the Services, Administrative Expenses, reserve deposits, deferred maintenance funding, and other amounts authorized to be funded. "Annual Escalation Factor" means the greater of (i) the annual percent increase, as of April 2027 and each April thereafter, in the Bureau of Labor Statistics' Consumer Price Index for All Urban Consumers (CPI-U) for the Los Angeles -Long Beach -Anaheim area or (ii) 3.0%. "Assessor" means the Assessor of the County of Los Angeles. "Assessor's Parcel" means a lot or parcel shown on an Assessor's Parcel Map with an assigned Assessor's parcel number. A-1 Packet Pg. 32 1.d "Assessor's Parcel Map" means an official map of the Assessor of the County designating parcels by Assessor's Parcel number. "Assessor's Parcel Number or APN" means the number assigned to the Assessor's Parcel by the County Assessor as shown on the Assessor's Parcel Map. "CFD or CFD No. 2020-1" means City of Santa Clarita Community Facilities District No. 2020-1 (Cooper Street Parking Structure). "CFD Administrator" means an official of the City, or designee thereof, responsible for determining the Special Tax Requirement, as described in Section I, and providing for the levy and collection of the Special Taxes. "Change in Total Parcel Area" means any event where Assessor's Parcel(s) change, such as a lot line adjustment, the addition of an easement, or some other change, resulting in the Total Parcel Area not being equal to the Taxable CFD Area (91,140 square feet). "City" means the City of Santa Clarita. "Council" means the City Council of the City of Santa Clarita, acting as the legislative body of CFD No. 2020-1. "County" means the County of Los Angeles, California. "Direct Operating Costs" means the estimated annual costs of operating, maintaining, repairing, and administering the Parking Structure that are included in the Annual Budget. "Fiscal Year" means the period starting July 1 and ending on the following June 30. "Maximum Special Tax" means for each Fiscal Year and for each Taxable Parcel, the maximum Special Tax that can be levied by CFD No. 2020-1 on such Taxable Parcel. "Non -Budgeted Costs" means maintenance costs that occur during any Fiscal Year that were not included in the Special Tax Requirement. "Operating Fund" means a fund that shall be maintained for CFD No. 2020-1 for any Fiscal Year to pay for Direct Operating Costs, Other Maintenance Costs, and Administrative Expenses of the CFD. "Other Maintenance Costs" means for any Fiscal Year, the estimated costs to maintain and operate the Parking Structure that are not included in the Direct Operating Costs. This includes all labor costs, including benefits and other payroll costs of paid personnel engaged in the operation of the Parking Structure; utility costs; the cost of trash services; any other operations costs; and any other Services authorized for the CFD. "Parcel Area" means the land area of an Assessor's Parcel, measured in square feet, as shown on an Assessor's Parcel Map, or if the land area is not identified on an Assessor's Parcel Map, the land area identified on the applicable final map, parcel map, or other recorded County document. A-2 Packet Pg. 33 1.d "Parking Structure" means the parking facility known as the Cooper Street Parking Structure, Cooper Street Parking Garage, or Parking Facility 1 located within the Vista Canyon project in the City. "Proportionately" means that the ratio of the actual Special Tax levy to the Maximum Special Tax is equal for all Taxable Parcel(s) within CFD No. 2020-1. "Reserve Fund(s)" means fund(s) that shall be maintained for CFD No. 2020-1 for accumulating funds to pay for deferred maintenance items that are included in the Annual Budget, or to pay for maintenance costs that are not budgeted. "Service(s)" means the operations, maintenance, repair, replacement, and administration of the Parking Structure, including but not limited to, automated gate maintenance, parking space restriping, concrete repair and elevator maintenance and other operations and maintenance services. "Special Tax" means any of the special taxes authorized to be levied within CFD No. 2020-1 pursuant to the Act to fund the Special Tax Requirement. "Special Tax Requirement" means, for each Fiscal Year, the amount necessary to pay the costs of providing the Services, including (i) Direct Operating Costs; (ii) Other Maintenance Costs; (iii) Administrative Expenses; and (iv) amounts necessary to increase or replenish the Operating Fund and/or Reserve Fund, as determined by the CFD Administrator, less any revenues reasonably expected to be available to pay such costs, including amounts reasonably expected to be collected by Vista Canyon Community Facilities District No. 2016-1, Special Tax for Services, as determined by the City at its sole discretion. "State" means the State of California. "Supplemental Special Tax" means the Special Tax levied pursuant to Section G to fund Non - Budgeted Costs. "Taxable CFD Area" means an amount equal to 91,140 square feet. "Taxable Parcel(s)" means the Assessor's Parcels within the boundaries of CFD, which are not exempt from the levy of the Special Tax pursuant to law or Section J below. "Taxable Parcel Area" means, initially, the Parcel Area of a Taxable Parcel. If a Change in Total Parcel Area occurs, Taxable Parcel Area will mean the Adjusted Parcel Area of a Taxable Parcel. "Total Parcel Area" means, at any time, the sum of the Parcel Area of all Taxable Parcel(s) within the CFD. DETERMINATION OF TAXABLE PARCELS Each Fiscal Year, commencing with Fiscal Year 2026-27, each Taxable Parcel shall be subject to Special Tax in accordance with the RMA determined pursuant to Sections C, D and E below. All Assessor's Parcels within the boundaries of CFD No. 2020-1, except for Non -Taxable Parcels or those that are exempt from the Special Tax pursuant to law, shall be considered as Taxable Parcels. A-3 Packet Pg. 34 1.d DETERMINATION OF TAXABLE AREA Each Fiscal Year, the Taxable Parcel Area shall be determined for the Taxable Parcels as follows If there have been no changes to Taxable Parcels since the inception of the CFD, then the Taxable Parcel Area shall be equal to the Parcel Area for all Taxable Parcels. The Taxable Parcel Area will not change until the first occurrence of a Change in Total Parcel Area, if any. ii. In the Fiscal Year of the first occurrence of a Change in Total Parcel Area, if any, the Adjusted Parcel Area for each Taxable Parcel shall be determined by dividing the Parcel Area of the Taxable Parcel by the total Parcel Area of all Taxable Parcels and multiplying the percentage quotient by the Taxable CFD Area (91,140 square feet). The Taxable Parcel Area shall then be equal to the Adjusted Parcel Area for all Taxable Parcels for such Fiscal Year until there is an occurrence of a Change in Total Parcel Area, if any. iii. For any Fiscal Year thereafter, if there is an occurrence of a Change in Total Parcel Area, the Adjusted Parcel Area for each Taxable Parcel shall be recalculated in the same manner as in the previous step in order to determine the Taxable Parcel Area. MAXIMUM SPECIAL TAX RATE The Fiscal Year 2026-27 Maximum Special Tax Rate for CFD No. 2020-1 is as follows. $10.09 per square foot of Taxable Parcel Area On each July 1, commencing on July 1, 2027, the Maximum Special Tax Rate shall be increased by an amount equal to the Annual Escalation Factor multiplied by the Maximum Special Tax Rate in effect for the previous Fiscal Year. MAXIMUM SPECIAL TAX For each Fiscal Year, the Maximum Special Tax for any Taxable Parcel shall be equal to the Maximum Special Tax Rate times the Taxable Parcel Area. METHOD OF APPORTIONMENT OF THE SPECIAL TAX For each Fiscal Year, commencing Fiscal Year 2026-27, the City shall levy the Special Tax Proportionately on Taxable Parcels within CFD No. 2020-1, up to a total amount equal to the lesser of the Special Tax Requirement or the Maximum Special Tax. SUPPLEMENTAL SPECIAL TAX FOR NON -BUDGETED COSTS During any Fiscal Year, if available funds in the Operating Fund and the Reserve Fund are not sufficient to pay for Non -Budgeted Costs, the City may levy Supplemental Special Taxes Proportionately on Taxable Parcels within CFD No. 2020-1, up to an amount equal to the applicable Maximum Special Tax, less the Special Tax previously levied for the Fiscal Year. Any Supplemental Special Tax levy shall be billed directly to property owners for collection 30 days after the date of billing. A-4 Packet Pg. 35 1.d MANNER OF COLLECTION OF THE SPECIAL TAX The Special Tax shall be collected in the same manner and at the same time as ordinary ad valorem property taxes, provided, however, that CFD No. 2020-1 may collect the Special Tax at a different time or in a different manner, including direct billing, if necessary to meet its funding requirements. DURATION OF THE SPECIAL TAX The Special Tax shall be levied in perpetuity to fund the Special Tax Requirement, unless no longer required as determined at the sole discretion of the Council. EXEMPTIONS No parcel(s) shall be exempt from the Special Tax unless exempted by law or designated as Non - Taxable Parcel(s). PREPAYMENT OF THE SPECIAL TAX The Special Tax may not be prepaid. APPEALS AND INTERPRETATIONS During any Fiscal Year, any landowner who feels that the amount of the Special Taxes levied on their Assessor's Parcel is in error may submit a written appeal to the CFD Administrator, provided that the landowner is current in the payment of the Special Taxes and such written appeal is submitted no later than the final day of the Fiscal Year of the appeal. The CFD Administrator shall review the appeal and provide findings to the City. For necessary corrections, no refund shall be given; however, the amount of the Special Taxes levied shall be adjusted appropriately in the following Fiscal Year(s). The CFD Administrator may interpret the RMA for purposes of clarifying any ambiguities and make determinations relative to the annual administration of the Special Taxes and any landowner appeals, including setting the annual Special Tax Requirement, waiving all or a portion of penalties and interest on delinquent Special Taxes, and determining primary and supplemental billing method for the Special Taxes. A-5 Packet Pg. 36 SHEET 1 OF 1 LG R cOONm�O g IEs O= RNV W �P ' BY TIHEcm Oaedci OF THE wx OF TA CLMm� Y�8R 8E OLU MNO.ER . ON THE - �-E HOURS _OC xN mil. -L;I—E8 O�BTNICT8 M THE OFFICE OF THE COUNTY REC6RCEfi IN THE OW NTY Annexed Parcels MAP REFERENCE NUMBER ASSESSOR'S PARCEL NUMBER z9a aMUis 1 28M}dN1919 3 28W-0M-036 De -Annexed Parcels MM REFERENCE NUMBER ASSESSOR'S PARCEL NUMBER t 2✓HD-P14.092 ] ffixo-R1449a Renlalnim Parcels MAP REFERENCE NUMBER ASSESSOR'SPARCEL NUMBER Laic-oc�-w. 161Ph2}9[6 Legend _ CID B'ILNBARY ® DF"EXED PARCELS =PARCELS REMMNM PARCELS ANNEWf11N & NINDARY HWRRI5 8 ASSOCIATES 1 D 1 PROGRESS. SURE 250 1WNE CALIFORNIA 92618 SDD82749101 Attachment: Resolution of Annexation and Change - CFD No. 2020-1 (Cooper Street Parking Structure) (ANNEXATION AND MODIFICATION OF 111m I Harris & Associates 111 CITY OF SANTA CLARITA COMMUNITY FACILITIES DISTRICT NO.2020-1 (COOPER STREET PARKING STRUCTURE) AMENDED CFD REPORT July 2026 QIts I Harris & Associates Purpose of Report This Community Facilities District Report ("CFD Report") is submitted to the City Council of the City of Santa Clarita (the "City Council") in accordance with the requirements of the Mello -Roos Community Facilities Act of 1982, as amended (the "Act"). The purpose of this CFD Report is to provide supporting documentation for the proposed annexation of territory to, deannexation of territory from, and modification of City of Santa Clarita Community Facilities District No. 2020-1 (Cooper Street Parking Structure) ("CFD No. 2020-1"). This CFD Report includes the following: • A general description of CFD No. 2020-1; • A description of the authorized services and operations to be funded within CFD No. 2020-1; • A description of the boundaries of CFD No. 2020-1; • An estimate of the costs to be funded, including costs associated with the operation, maintenance, administration, and repair of the Cooper Street Parking Structure, together with incidental administrative expenses; and • A description of the proposed amended and restated Rate and Method of Apportionment of Special Tax ("RMA"). For further details, reference is made to Resolution of Intention No. 26-38 adopted by the City Council on June 23, 2026. Capitalized terms used but not otherwise defined in this CFD Report shall have the meanings ascribed to them in the Amended and Restated Rate and Method of Apportionment of Special Tax attached hereto as Appendix A. Background Pursuant to the Act, the City Council previously initiated proceedings for the establishment of CFD No. 2020-1 through adoption of a Resolution of Intention on November 24, 2020, which was subsequently amended on January 12, 2021. Thereafter, on January 26, 2021, the City Council adopted resolutions establishing CFD No. 2020-1 and authorizing the levy of a special tax within CFD No. 2020-1 to finance authorized services related to the Cooper Street Parking Structure. The City Council has now adopted Resolution of Intention No. 26-38 to initiate proceedings for the annexation of additional property into CFD No. 2020-1, including annexation of territory, removal of territory, approval of an Amended and Restated Rate and Method of Apportionment, and related proceedings to CFD No. 2020-1, including adoption of an amended and restated RMA. Legal Authority Pursuant to the Act, the City Council has adopted Resolution of Intention No. 26-38 initiating proceedings for the annexation of territory into and modification of CFD No. 2020-1 and initiating proceedings for the annexation and modification of CFD No. 2020-1, including consideration of an amended and restated Rate and Method of Apportionment and the continued levy of special taxes within CFD No. 2020-1 to finance authorized services and related incidental expenses as described herein. The modifications described herein are intended to update the boundaries of CFD No. 2020-1, annex additional territory, remove certain territory, and amend the Rate and Method of Apportionment. The authorized services to be financed by CFD No. 2020-1 remain substantially unchanged. FV Harris & Associates The authorized services to be funded by CFD No. 2020-1 include the operations, maintenance, repair, replacement, and administration of the Cooper Street Parking Structure located at 17265 Rouse Place in the City of Santa Clarita (the "Parking Structure"), including but not limited to the following: • Operation and management of the Parking Structure; • Routine and preventative maintenance of the Parking Structure and related improvements; • Repair and replacement of Parking Structure components and appurtenances; • Elevator maintenance and repair; • Lighting, electrical, utility, and drainage costs; • Security services, surveillance systems, access control systems, and related monitoring services; • Janitorial, sweeping, pressure washing, graffiti removal, and trash removal services; • Fire/life safety inspections, monitoring, maintenance, and related services; • Landscaping and irrigation maintenance; • Parking control equipment maintenance and repair; • Reserve funding for deferred maintenance and replacement costs; • Administrative expenses associated with the administration of CFD No. 2020-1; and • Any other services authorized pursuant to the Act and the Amended and Restated Rate and Method of Apportionment of Special Tax. In addition to the authorized services described above, CFD No. 2020-1 may finance incidental expenses, including but not limited to: • The costs associated with the annexation to and modification of CFD No. 2020-1; • The costs of preparing and administering annual special tax levies; • The costs of collecting special taxes; • Engineering, legal, consulting, and administrative fees related to CFD No. 2020-1; • The costs associated with administering the Special Tax and responding to appeals and inquiries regarding the Special Tax; and • All other incidental expenses authorized under the Act. This description is intended to provide flexibility for the operations, maintenance, repair, replacement, and administration of the Parking Structure and related services. Modifications to specific service components or maintenance activities may occur from time to time, provided such changes do not constitute a material change to the authorized services of CFD No. 2020-1. 3 Harris & Associates The estimated costs to be funded by CFD No. 2020-1 consist of the annual costs associated with the operations, maintenance, repair, replacement, and administration of the Cooper Street Parking Structure, together with related incidental expenses, all as authorized pursuant to the Amended and Restated Rate and Method of Apportionment of Special Tax ("RMA"). The annual costs to be funded by CFD No. 2020-1 may include, but are not limited to: • Direct Operating Costs; • Other Maintenance Costs; • Administrative Expenses; • Reserve deposits and deferred maintenance funding; • Repair and replacement costs for Parking Structure components and appurtenances; • Security and monitoring services; • Utility costs; • Janitorial and maintenance services; • Landscaping and irrigation maintenance; • Elevator maintenance and repair; • Insurance costs; • Professional consulting and administrative services; • Other costs authorized pursuant to the RMA. The Annual Budget for CFD No. 2020-1 shall be determined annually by the City or its designee in accordance with the RMA and shall include the estimated costs of providing the authorized services together with any incidental administrative expenses and reserve funding requirements. For Fiscal Year 2026-27, the Maximum Special Tax Rate established by the RMA for Fiscal Year 2026-27 is $10.09 per square foot of Taxable Parcel Area. The estimated annual costs of providing the authorized services, including operations, maintenance, administration, and reserves is approximately $313,223 for Fiscal Year 2026-27, as shown in the table below. Accordingly, the special tax requirement is estimated at approximately $313,223. The estimated annual costs and budget assumptions described herein are intended to provide a reasonable estimate of anticipated costs; however, actual annual costs may vary from year to year depending on operating conditions, maintenance requirements, utility costs, inflationary adjustments, reserve funding needs, and other factors affecting the operation and maintenance of the Parking Structure. Item FY 2026-27 Estimate Operations and Maintenance $129,445 Administrative Expenses $141,229 Deferred Maintenance Reserves $13,426 Operations and Emergency Reserves $29,123 Estimated Initial Special Tax Requirement $313,223 The Maximum Special Tax established in the Rate and Method of Apportionment exceeds the initial estimated Special Tax Requirement in order to provide flexibility for future increases in the costs of providing authorized services, inflation, changes in operating requirements, reserve funding, the operation and maintenance of future authorized parking structures or related parking facilities, and other costs authorized to be funded by the CFD. The annual levy in any Fiscal Year shall be limited to the lesser of the Special Tax Requirement or the Maximum Special Tax authorized by the Rate and Method of Apportionment. 4 Harris & Associates The Amended and Restated Rate and Method of Apportionment of Special Tax ("RMA") for CFD No. 2020-1 is attached hereto as Appendix A and is incorporated herein by reference. Pursuant to the RMA, the Special Tax shall be levied annually on Taxable Parcels within CFD No. 2020-1 to fund the Special Tax Requirement, including the costs of authorized services, operations, maintenance, repair, replacement, administration, reserve funding, and other incidental expenses authorized pursuant to the Mello -Roos Community Facilities Act of 1982 (the "Act"). The Special Tax shall be levied and collected in the same manner and at the same time as ordinary ad valorem property taxes levied by the County of Los Angeles and shall be subject to the same penalties and procedures in the case of delinquency. However, the Special Tax may also be collected at a different time or in a different manner, including direct billing, as necessary to meet the funding requirements of CFD No. 2020-1, as provided in the RMA and permitted by the Act. All property within CFD No. 2020-1, unless exempt by law or pursuant to the RMA, shall be subject to the levy of the Special Tax. In accordance with Government Code Section 53325.3, the Special Tax is not a special assessment and is not required to be apportioned based upon the benefit received by each parcel. The Special Tax may instead be apportioned on the basis of reasonable classifications and formulas as set forth in the RMA, provided such apportionment is not based upon the value of property in compliance with Article XIII A of the California Constitution. In developing the RMA, Harris & Associates relied upon information and assumptions provided by the City, property owners, legal counsel, and other consultants associated with the proceedings, including, but not limited to, parcel information, taxable area calculations, budget assumptions, and estimated costs associated with the authorized services and administration of CFD No. 2020-1. Harris & Associates has not independently verified all such information and assumes no responsibility for the impact of inaccuracies in such data on the administration of the Special Tax or the funding requirements of CFD No. 2020-1. 5 Harris & Associates CFD No. 2020-1 is located within the City of Santa Clarita and is generally bounded by Humphreys Parkway, Cooper Street, Lincoln Place, and Mitchell Drive. CFD No. 2020-1 includes property associated with the Cooper Street Parking Structure and adjacent development within the Vista Canyon project area. CFD No. 2020-1 encompasses approximately 91,140 square feet within the City of Santa Clarita and includes the following Assessor's Parcel Numbers ("APNs"): 2840-029-016 2840-029-019 2840-029-036 The APNs listed above are based upon the current Los Angeles County Assessor's records. In the event of future lot line adjustments, mergers, subdivisions, or other parcel changes, the APNs may change without affecting the validity of the Special Tax. The parcels identified above represent the property proposed to be included within CFD No. 2020-1 and subject to the levy of Special Taxes pursuant to the Amended and Restated Rate and Method of Apportionment of Special Tax ("RMA") to fund the authorized services, administrative expenses, reserve funding, and incidental costs described in this CFD Report. A reduced -scale Boundary Map is provided in Appendix B. A full-scale Boundary Map is on file with the City Clerk of the City of Santa Clarita and was recorded in the Office of the County Recorder of the County of Los Angeles, State of California, in Book _ of Maps of Assessment and Community Facilities Districts, at Page, as Document No. 2026- _ Harris & Associates APPENDIX A AMENDED AND RESTATED RATE AND METHOD OF APPORTIONMENT FOR CITY OF SANTA CLARITA COMMUNITY FACILITIES DISTRICT NO. 2020-1 (COOPER STREET PARKING STRUCTURE) A Special Tax as hereinafter defined shall be levied on all Assessor's Parcels in City of Santa Clarita Community Facilities District No. 2020-1 (Cooper Street Parking Structure) ("CFD No. 2020-1" or "CFD") and collected each Fiscal Year commencing in Fiscal Year 2026-27, in an amount determined by the Council or its designee, through the application of the Rate and Method of Apportionment ("RMA"), as described below. All of the real property in CFD No. 2020-1, unless exempted by law or by the provisions hereof, shall be taxed for the purposes, to the extent and in the manner herein provided. DEFINITIONS The terms hereinafter set forth have the following meanings: "Act" means the Mello -Roos Community Facilities Act of 1982, as amended, being Chapter 2.5, Division 2 of Title 5 of the Government Code of the State of California. "Adjusted Parcel Area" means the adjusted land area that is assigned to Taxable Parcel(s) for purposes of determining the Maximum Special Tax whenever there is a Change in Total Parcel Area. "Administrative Expenses" means the following actual or reasonably estimated costs directly related to the administration of CFD No. 2020-1 that are not included in the Direct Operating Costs. This includes, without limitation, the costs of computing the Special Taxes and preparing the annual Special Tax collection schedules (whether by the City or designee thereof or both); collecting the Special Taxes (whether by the City or otherwise); responding to inquiries regarding the Special Taxes; costs of the City, CFD No. 2020-1 or any designee thereof related to an appeal of any Special Tax levy; and the City's annual administration fees and third party expenses. "Annual Budget" means the budget approved or determined by the City for CFD No. 2020-1 for a Fiscal Year, including the estimated costs of providing the Services, Administrative Expenses, reserve deposits, deferred maintenance funding, and other amounts authorized to be funded. "Annual Escalation Factor" means the greater of (i) the annual percent increase, as of April 2027 and each April thereafter, in the Bureau of Labor Statistics' Consumer Price Index for All Urban Consumers (CPI-U) for the Los Angeles - Long Beach -Anaheim area or (ii) 3.0%. "Assessor" means the Assessor of the County of Los Angeles. "Assessor's Parcel" means a lot or parcel shown on an Assessor's Parcel Map with an assigned Assessor's parcel number "Assessor's Parcel Map" means an official map of the Assessor of the County designating parcels by Assessor's Parcel number. "Assessor's Parcel Number or APN" means the number assigned to the Assessor's Parcel by the County Assessor as shown on the Assessor's Parcel Map. Harris & Associates "CFD or CFD No. 2020-1" means City of Santa Clarita Community Facilities District No. 2020-1 (Cooper Street Parking Structure). "CFD Administrator" means an official of the City, or designee thereof, responsible for determining the Special Tax Requirement, as described in Section I, and providing for the levy and collection of the Special Taxes. "Change in Total Parcel Area" means any event where Assessor's Parcel(s) change, such as a lot line adjustment, the addition of an easement, or some other change, resulting in the Total Parcel Area not being equal to the Taxable CFD Area (91,140 square feet). "City" means the City of Santa Clarita. "Council" means the City Council of the City of Santa Clarita, acting as the legislative body of CFD No. 2020-1. "County" means the County of Los Angeles, California. "Direct Operating Costs" means the estimated annual costs of operating, maintaining, repairing, and administering the Parking Structure that are included in the Annual Budget. "Fiscal Year" means the period starting July 1 and ending on the following June 30. "Maximum Special Tax" means for each Fiscal Year and for each Taxable Parcel, the maximum Special Tax that can be levied by CFD No. 2020-1 on such Taxable Parcel. "Non -Budgeted Costs" means maintenance costs that occur during any Fiscal Year that were not included in the Special Tax Requirement. "Operating Fund" means a fund that shall be maintained for CFD No. 2020-1 for any Fiscal Year to pay for Direct Operating Costs, Other Maintenance Costs, and Administrative Expenses of the CFD. "Other Maintenance Costs" means for any Fiscal Year, the estimated costs to maintain and operate the Parking Structure that are not included in the Direct Operating Costs. This includes all labor costs, including benefits and other payroll costs of paid personnel engaged in the operation of the Parking Structure; utility costs; the cost of trash services; any other operations costs; and any other Services authorized for the CFD. "Parcel Area" means the land area of an Assessor's Parcel, measured in square feet, as shown on an Assessor's Parcel Map, or if the land area is not identified on an Assessor's Parcel Map, the land area identified on the applicable final map, parcel map, or other recorded County document. "Parking Structure" means the parking facility known as the Cooper Street Parking Structure, Cooper Street Parking Garage, or Parking Facility 1 located within the Vista Canyon project in the City. "Proportionately" means that the ratio of the actual Special Tax levy to the Maximum Special Tax is equal for all Taxable Parcel(s) within CFD No. 2020-1. "Reserve Fund(s)" means fund(s) that shall be maintained for CFD No. 2020-1 for accumulating funds to pay for deferred maintenance items that are included in the Annual Budget, or to pay for maintenance costs that are not budgeted. "Service(s)" means the operations, maintenance, repair, replacement, and administration of the Parking Structure, including but not limited to, automated gate maintenance, parking space restriping, concrete repair and elevator maintenance and other operations and maintenance services. Harris & Associates "Special Tax" means any of the special taxes authorized to be levied within CFD No. 2020-1 pursuant to the Act to fund the Special Tax Requirement. "Special Tax Requirement" means, for each Fiscal Year, the amount necessary to pay the costs of providing the Services, including (i) Direct Operating Costs; (ii) Other Maintenance Costs; (iii) Administrative Expenses; and (iv) amounts necessary to increase or replenish the Operating Fund and/or Reserve Fund, as determined by the CFD Administrator, less any revenues reasonably expected to be available to pay such costs, including amounts reasonably expected to be collected by Vista Canyon Community Facilities District No. 2016-1, Special Tax for Services, as determined by the City at its sole discretion. "State" means the State of California. "Supplemental Special Tax" means the Special Tax levied pursuant to Section G to fund Non -Budgeted Costs. "Taxable CFD Area" means an amount equal to 91,140 square feet. "Taxable Parcel(s)" means the Assessor's Parcels within the boundaries of CFD, which are not exempt from the levy of the Special Tax pursuant to law or Section J below. "Taxable Parcel Area" means, initially, the Parcel Area of a Taxable Parcel. If a Change in Total Parcel Area occurs, Taxable Parcel Area will mean the Adjusted Parcel Area of a Taxable Parcel. "Total Parcel Area" means, at any time, the sum of the Parcel Area of all Taxable Parcel(s) within the CFD. DETERMINATION OF TAXABLE PARCELS Each Fiscal Year, commencing with Fiscal Year 2026-27, each Taxable Parcel shall be subject to Special Tax in accordance with the RMA determined pursuant to Sections C, D and E below. All Assessor's Parcels within the boundaries of CFD No. 2020-1, except for Non -Taxable Parcels or those that are exempt from the Special Tax pursuant to law, shall be considered as Taxable Parcels. DETERMINATION OF TAXABLE AREA Each Fiscal Year, the Taxable Parcel Area shall be determined for the Taxable Parcels as follows: If there have been no changes to Taxable Parcels since the inception of the CFD, then the Taxable Parcel Area shall be equal to the Parcel Area for all Taxable Parcels. The Taxable Parcel Area will not change until the first occurrence of a Change in Total Parcel Area, if any. ii. In the Fiscal Year of the first occurrence of a Change in Total Parcel Area, if any, the Adjusted Parcel Area for each Taxable Parcel shall be determined by dividing the Parcel Area of the Taxable Parcel by the total Parcel Area of all Taxable Parcels and multiplying the percentage quotient by the Taxable CFD Area (91,140 square feet). The Taxable Parcel Area shall then be equal to the Adjusted Parcel Area for all Taxable Parcels for such Fiscal Year until there is an occurrence of a Change in Total Parcel Area, if any. iii. For any Fiscal Year thereafter, if there is an occurrence of a Change in Total Parcel Area, the Adjusted Parcel Area for each Taxable Parcel shall be recalculated in the same manner as in the previous step in order to determine the Taxable Parcel Area. Harris & Associates MAXIMUM SPECIAL TAX RATE The Fiscal Year 2026-27 Maximum Special Tax Rate for CFD No. 2020-1 is as follows. $10.09 per square foot of Taxable Parcel Area On each July 1, commencing on July 1, 2027, the Maximum Special Tax Rate shall be increased by an amount equal to the Annual Escalation Factor multiplied by the Maximum Special Tax Rate in effect for the previous Fiscal Year. MAXIMUM SPECIAL TAX For each Fiscal Year, the Maximum Special Tax for any Taxable Parcel shall be equal to the Maximum Special Tax Rate times the Taxable Parcel Area. METHOD OF APPORTIONMENT OF THE SPECIAL TAX For each Fiscal Year, commencing Fiscal Year 2026-27, the City shall levy the Special Tax Proportionately on Taxable Parcels within CFD No. 2020-1, up to a total amount equal to the lesser of the Special Tax Requirement or the Maximum Special Tax. SUPPLEMENTAL SPECIAL TAX FOR NON -BUDGETED COSTS During any Fiscal Year, if available funds in the Operating Fund and the Reserve Fund are not sufficient to pay for Non -Budgeted Costs, the City may levy Supplemental Special Taxes Proportionately on Taxable Parcels within CFD No. 2020-1, up to an amount equal to the applicable Maximum Special Tax, less the Special Tax previously levied for the Fiscal Year. Any Supplemental Special Tax levy shall be billed directly to property owners for collection 30 days after the date of billing. MANNER OF COLLECTION OF THE SPECIAL TAX The Special Tax shall be collected in the same manner and at the same time as ordinary ad valorem property taxes, provided, however, that CFD No. 2020-1 may collect the Special Tax at a different time or in a different manner, including direct billing, if necessary to meet its funding requirements. DURATION OF THE SPECIAL TAX The Special Tax shall be levied in perpetuity to fund the Special Tax Requirement, unless no longer required as determined at the sole discretion of the Council. EXEMPTIONS No parcel(s) shall be exempt from the Special Tax unless exempted by law or designated as Non -Taxable Parcel(s). PREPAYMENT OF THE SPECIAL TAX The Special Tax may not be prepaid. APPEALS AND INTERPRETATIONS During any Fiscal Year, any landowner who feels that the amount of the Special Taxes levied on their Assessor's Parcel is in error may submit a written appeal to the CFD Administrator, provided that the landowner is current in the payment of the Special Taxes and such written appeal is submitted no later than the final day of the Fiscal Year of the Harris & Associates appeal. The CFD Administrator shall review the appeal and provide findings to the City. For necessary corrections, no refund shall be given; however, the amount of the Special Taxes levied shall be adjusted appropriately in the following Fiscal Year(s). The CFD Administrator may interpret the RMA for purposes of clarifying any ambiguities and make determinations relative to the annual administration of the Special Taxes and any landowner appeals, including setting the annual Special Tax Requirement, waiving all or a portion of penalties and interest on delinquent Special Taxes, and determining primary and supplemental billing method for the Special Taxes. IN TERMINATION OF PARKING MANAGEMENT SERVICES AGREEMENT FOR PARKING STRUCTURE 1 AND SETTLEMENT AGREEMENT This TERMINATION OF PARKING MANAGEMENT SERVICES AGREEMENT FOR PARKING STRUCTURE 1 AND SETTLEMENT AGREEMENT (the "Agreement") is made and entered into as of , 2026 (the "Effective Date"), by and among the City of Santa Clarita (the "City"), Vista Canyon Master Association, a California non-profit mutual benefit corporation (the "Association"), Vista Canyon Ranch, LLC ("the Developer"), and VC Lincoln I LLC and Vista Canyon Phase I LLC (collectively the "Landowners"), with reference to the following facts: WHEREAS, the City, the Developer, and Vista Canyon Phase I, LLC, are parties to that certain Funding and Acquisition Agreement dated as of April 12, 2016 (the "Acquisition Agreement"), under which the City acquired a multi -story parking facility known as Parking Structure 1 located within the Vista Canyon project (the "Parking Facility"); WHEREAS, in connection the issuance, sale and delivery of the $17,230,000 City of Santa Clarita Community Facilities District No. 2016-1 (Vista Canyon) Special Tax Bonds 2020 Series (the "Bonds"), the City and the Association entered into and delivered the Parking Management Services Agreement For Parking Structure 1, dated as of October 21, 2020 (the "Management Agreement"), under which the Association agreed to manage the Parking Facility; WHEREAS, the parties acknowledge that the Association is in default under the Management Agreement with respect to timely recordkeeping and reimbursement requests, maintenance standards, and outstanding delinquencies in the payment of special taxes relating to the City of Santa Clarita Community Facilities District No. 2020-1 (Cooper Street) (the "Cooper Street CFD"); WHEREAS, pursuant to the terms of the Acquisition Agreement, the City and the Developer entered into a Parking Spaces Acquisition Agreement dated of October 21, 2020 (the "Parking Acquisition Agreement"), by which the Developer acquired certain rights and obligations with respect to eighty-four (84) parking spaces within the Parking Facility (the "Private Parking Spaces"), and entered into an Easement Agreement for Parking Spaces dated as of October 21, 2021 (the "Parking Easement Agreement") related thereto; WHEREAS, the City and the Developer also entered into an Easement Agreement For Solar Facilities and Community Identification Signage dated as of October 21, 2020 (the "Signage Easement Agreement"); and WHEREAS, the parties hereto desire to (i) terminate the Management Agreement, (ii) set forth terms of a settlement clarifying duties and obligations of the parties with respect to existing deficiencies of maintenance and deferred maintenance of the Parking Facility and delinquent special taxes and reimbursement, (iii) provide conditions expected of the parties to terminate the Management Agreement and (iv) affirm Developer's interest in Private Parking Spaces. NOW, THEREFORE, for and in consideration of the mutual covenants and promises herein contained, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, both parties hereto agree as follows: 1. Termination of Management Agreement. The parties hereto agree that the Management Agreement shall be terminated, canceled and released as of the Effective Date. 2. Settlement Conditions. In consideration of terminating the Management Agreement, the parties agree to the following settlement conditions as outlined below and in Exhibit A. (a) Delinquent Cooper Street CFD Special Taxes. Total delinquent special taxes owed to the City, including penalties and interest as of July 1, 2026, is $1,514,380. As part of the settlement agreement, $976,320 of special taxes, penalties, and interest are waived, resulting in a balance owed to the City of $770,000. The Developer shall pay to the City on or before the dates referenced in (b), Cooper Street CFD special taxes totaling $770,000 as settlement for outstanding special taxes owed to the City. (b) Payments to the City. The Developer shall pay to the City on or before the dates and in the amounts listed below for delinquent Cooper Street CFD special taxes: (i) $192,500, on or before August 1, 2026; (ii) $192,500, on or before September 1, 2026; (iii) $192,500, on or before October 1, 2026; (iv) $192,500, on or before November 1, 2026; (c) Apartment Payments. On or before the Effective Date, the Developer or Association shall pay or transfer any remittances received from Ridgewood Vista Canyon LLC at al Azure HGI Vista Canyon LP (the "Apartments") for parking structure maintenance costs in the current and prior years that have not been expended on parking structure maintenance costs. (d) Deferred Maintenance. Should the Developer or Association remedy maintenance deficiencies identified by the City (i.e. elevator and other necessary site repairs) to the City's sole satisfaction, including reasonable costs, credit may be given toward the special taxes owed of up to $50,000. (e) Proportionate Share of Private Spaces. Prior to the Effective Date, the Developer shall pay to the City in consideration of the maintenance for the Private Parking Spaces for FY 26/27 the amount of $17,015 which represents 63 private spaces of the 84 private spaces or 10% of the estimated Parking Facility budget through June 30, 2027. The City shall begin sending annual invoices in connection with the Private Parking Spaces to the Developer for FY 27/28, with payment due by the Developer beginning April 10, 2027 and each April 10 thereafter. (f) Annexation of Three Parcels to Cooper Street CFD. The Association and the Landowners agree to facilitate the annexation of parcels identified as APN 2840-029-016, APN 2840-029-019 and APN 2840-029-036 (the "Annexing Parcels"), to the Cooper Street CFD and the removal of the original parcel identified as APN 2840-029-018 (now APNs 2840-029-032, 2840-029-034, and 2840-029-035). The parties agree the completion of the annexation to the Cooper Street CFD of the Annexing Parcels constitute part of the settlement. It is the intent of the parties that maintenance for the Parking Facility be funded from City of Santa Clarita Community Facilities District No. 2016-1 (Vista Canyon) (the "Vista Canyon CFD") services back-up special tax "B" to the maximum extent legally available, with the balance from the Cooper Street CFD special taxes. Should the Developer fail to make payments in (b) above representing delinquent Cooper Street CFD special taxes, the Landowners hereby agree to include such amounts, plus late fees and interest, as transferred delinquent special tax payments to the Annexing Parcels, subject to foreclosure or tax sale for nonpayment of special taxes. 3. Affirmation of Private Parking Spaces. The City and the Developer each affirm the validity of the Parking Acquisition Agreement and the Parking Easement Agreement, as amended and restated, and the rights, responsibilities and obligations of the parties thereunder. Developer acknowledges its obligations under Section 2 and 3 of the Parking Easement Agreement, as amended and restated, and acknowledges that, subsequent to the Effective Date, the Developer shall directly pay to the City its Proportionate Share of the Operating Costs of the Parking Facility (as such term is described in the Parking Easement Agreement, as amended and restated) set forth in Section 3 of the Parking Easement Agreement, as amended and restated. Developer hereby expressly agrees that City may directly invoice the Apartments based on the number of Private Parking Spaces assigned to the Apartments, which is currently 21 spaces. The City will directly invoice the Apartments beginning FY 26/27, which will include invoices for FY 26/27 (due by December 10, 2026) and FY 27/28 (due by April 10, 2027 and every April 10 thereafter for future fiscal years). The amount collected directly from the Apartments will account for a portion of the Developer's Proportionate Share of Operating Costs of the Parking Facility and such amounts received shall be credited to the Developer's Proportionate Share of the Operating Costs of the Parking Facility. Failure by the Developer to pay the Developer's Proportionate Share (the total 84 spaces) of the Operating Costs of the Parking Facility for the Private Parking Spaces shall suspend Developer's rights under the Parking Easement Agreement until all amounts owing are made current. 4. Maintenance of Parkin Facility by City. Subsequent to the Effective Date, the City shall manage, operate, and maintain the Parking Facility in good, safe and clean condition and working order. 5. Projected 2026-27 Charges Relating to Parkin Facility Under City Management. The projected 2026-27 special taxes and direct billings for the operation of the Parking Facility are estimated to be as follows: ANNEXATION PARCELS Cooper St CFD Special Taxes on Roll DEVELOPER FY 26-27 Estimated $207,190 Vista Canyon CFD Back Up Service Tax $24,750 Proportionate Share of 84 Private Parking Spaces (63 spaces) $17,015 RIDGEWOOD VISTA CANYON LLC ET AL AZURE HGI VISTA CANYON LP (Apartments) Vista Canyon CFD Back Up Service Tax $81,283 Proportionate Share of 84 Private Parking Spaces (21 spaces) $5,672 FY 26-27 ESTIMATED TOTAL $335,910 6. Whole Agreement. The mutual obligations of the parties as provided herein are the sole consideration for this Agreement, and no representations, promises or inducements have been made by the parties other than as appear in this Agreement. This Agreement may not be amended except in writing signed by the parties hereto. 7. Mutual Releases. In consideration of terminating and releasing the Management Agreement, and the representations and other agreements herein contained, subsequent to the Effective Date, the parties hereby release and forever discharge each other, and their respective partners, members, officers, directors, agents, trustees, beneficiaries and employees, of and from any and all losses, expenses, injuries, claims, acts, damages, demands, rights of action and causes of action which each party ever had, or has, against the other, arising from or in any way connected with the Management Agreement. This release is intended as a full settlement and compromise of each, every and all known claims of every kind and nature relating to the Management Agreement or any person claiming through the City or the Association. 8. Miscellaneous. Warranties, representations, agreements and obligations contained in this Agreement shall survive the execution and delivery of this Agreement and shall survive any and all performances in accordance with this Agreement. This Agreement may be executed in any number of counterparts which together shall constitute the Agreement. If any party obtains a judgment against any other party by reason of breach of this Agreement, reasonable attorneys' fees as fixed by the court shall be included in such judgment. This Agreement and the terms and provisions hereof shall inure to the benefit of and be binding upon the heirs, successors and assigns of the parties. This Agreement shall be construed and enforced in accordance with the laws of the State of California. IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first above written. CITY OF SANTA CLARITA :1 ATTEST City Clerk APPROVED AS TO FORM: By: City Attorney Kenneth W. Striplin City Manager VISTA CANYON MASTER ASSOCIATION, a California nonprofit mutual benefit corporation James S. Backer, President VISTA CANYON RANCH, LLC a California limited liability company By: JSJ PARTNERS, LLC, a California limited liability company, its Manager By: JSB Development, Inc., a California corporation, Member go James S. Backer, President VC LINCOLN I, LLC, a Delaware limited liability company By: Vista Canyon Phase I, LLC, a Delaware limited liability company its: Sole Member By: Vista Canyon Ranch, LLC, a California limited liability company its: Manager By: JSJ Partners, LLC, a California limited liability company, its Manager By: JSB Development, Inc., a California corporation, Member James S. Backer, President VISTA CANYON PHASE I, LLC, a Delaware limited liability company By: Vista Canyon Ranch, LLC, a California limited liability company its: Manager By: JSJ Partners, LLC, a California limited liability company its: Manager By: JSB Development, Inc., a California corporation its: Member James S. Backer, President Mailing Address: 27651 Lincoln Place, 9260 Santa Clarita_ CA 91387 Telephone: 661-210-7355 Email: JBacker@jsbdev.com Cooper Street Parking Structure Special Taxes Settlement & 26/27 Estimated Special Taxes Special Taxes Owed Owner Description 23/24 24/25 25/26 Total Estimated 26/27 Costs Cooper Street Maintenance CFD 2840-029-018 Special Taxes (Original Parcel $ 241,042 $ 456,659 $ 490,362 $ 1,188,063 Penalties as of 7/1/26 $ 42,878 $ 47,608 $ 49,036 $ 139,523 Interest as of 7/1/26 Vista Canyon Phase I LLC $ 90,391 $ 89,049 $ 7,355 $ 186,795 Total Special Taxes Owed, $ 374,311 $ 593,315 $ 546,754 $ 1,514,380 Original Parcel - Removed including penalties and interest Settlement Adjustment $ - $ (429,566) $ (546,754) $ (976,320) Settlement Agreement - $ 374,311 $ 163,749 $ Soecial Taxes Due to Citv VC Lincoln I LLC 2840-029-016 $ 84,812 2840-029-019 $ 77,721 Annexed Parcels Vista Canyon Phase I LLC 2840-029-036 $ 44,657 Settlement Agreement - Special Taxes Due to City $ 207,190 Vista Canyon "Back Up" Maintenance CFD VC Lincoln I LLC 2840-029-020 Special Taxes $ 24,750 "Back Up" Ridgewood Vista Canyon LLC et 2840-029-013 Special Taxes $ 59,608 Maintenance al Azure HGI Vista Canyon LP (Apartment2840-029-014 Special Taxes $ 21,676 CFD s) Direct Bill to Vista Canyon Ranch LLC for 63 Private Parking Spaces Vista Canyon Ranch LLC Private Parking Spaces - 63 $ 17,015 Direct Bill to Apartments for 21 Private Parking Spaces Ridgewood Vista Canyon LLC et al Azure HGI Vista Canyon LP Private Parking Spaces - 21 $ 5,672 KEY = Developer Estimated Annual Parking Structure Costs (City)--> $ 335,910 I Total Settlement Obligations and Payment Schedule $ 488,060 Prior Year Delinquent Special Taxes $ 50,000 Prior Year Delinquent Special Taxes - Costs Owed to City for Maintenance Deficiencies $ 207,190 26/27 Special Taxes - Cooper Street Maintenance CFD $ 24,750 26/27 Special Taxes - Vista Canyon "Back Up" Maintenance CFD Settlement Agreement - Special Taxes Owed to the City $ 770,000 Payment Schedule 8/1/2026 9/1/2026 10/1/2026 11/1/2026 Total Owed to City per Termination of Parking Management Services Agreement $ 770,000 $ 192,500 $ 192,500 $ 192,500 $ 192,500 and Settlement Agreement RECORDING REQUESTED BY AND WHEN RECORDED RETURN TO: CITY OF SANTA CLARITA Attention: Director of Administrative Services 23920 Valencia Boulevard Santa Clarita, California 91355 AMENDED AND RESTATED EASEMENT AGREEMENT FOR PARKING SPACES BY AND BETWEEN CITY OF SANTA CLARITA AND VISTA CANYON RANCH, LLC DATED AS OF , 2026 This document is exempt from recording fees pursuant to Government Code Section 27383. AMENDED AND RESTATED EASEMENT AGREEMENT FOR PARKING SPACES This AMENDED AND RESTATED EASEMENT AGREEMENT FOR PARKING SPACES (the "Agreement") is made and entered into as of , 2026 (the "Effective Date"), by and between the City of Santa Clarita (the "Grantor"), and Vista Canyon Ranch, LLC company ("Grantee" and, together with the Grantor, the "Parties" and each a "Parry"). RECITALS This Agreement is made and entered into on the basis of the following facts and understandings of the Parties set forth in these recitals: A. Grantor is a municipality located within Los Angeles County, California, more specifically within the Santa Clarita Valley. B. On April 26, 2011, Grantor adopted Resolution No. 11-23 approving the Vista Canyon Specific Plan ("Vista Canyon Project"). The approved Vista Canyon Project consists of: (i) 1,100 single-family, multi -family, and apartment units; (ii) 950,000 square feet of retail, office, and hotel uses; (iii) a Multi -Modal Transit Center; (iv) a water reclamation factory known as the Vista Canyon Water Factory; (v) recreational amenities; and, (vi) other related infrastructure, services and amenities (e.g., roadway improvements, trails, buried bank stabilization) along with the Vista Canyon Project's Final Conditions of Approval. C. Grantor, Grantee and Vista Canyon Phase I, LLC, a Delaware limited liability company ("VCPP'), are parties to that certain Funding and Acquisition Agreement dated as of April 12, 2016 (the "Acquisition Agreement"), pursuant to which Grantor acquired from Grantee and VCPI, and is now the owner of, land (the "Property") and a multi -story parking facility known as Parking Structure I or Cooper Street Parking Structure located thereon within the Vista Canyon Project (the "Parking Facility"), as more specifically described on Exhibit 1 attached hereto and made a part hereof. D. Pursuant to the terms of the Acquisition Agreement, Grantor and Grantee have entered into a Parking Spaces Acquisition Agreement dated as of October 21, 2020 (the "Parking Agreement") by which Grantee acquired certain rights and obligations with regard to eighty-four (84) parking spaces at the Parking Facility for the benefit of the respective owners of adjacent multi -family residential properties described on Exhibit 2 attached hereto and made a part hereof and the residents thereof (the "Dominant Tenements"). E. Pursuant to the Parking Agreement, Grantor and Grantee entered into the Easement Agreement for Parking Spaces dated as of October 21, 2020 (the "Original Easement Parking Agreement") recorded on November 2, 2020, as Document No. 20201373407, in the Office of the Los Angeles County Recorder, State of California, in which Grantor granted to Grantee for each of the Dominant Tenements certain easements at the Parking Facility for the use of certain parking spaces (the "Parking Spaces") in those portions of the Parking Facility more specifically described on Exhibit 3 attached hereto and made a part hereof (the "Easement Areas"), and to provide for the respective rights and obligations of the Parties with regard to the Parking Spaces. F. In connection with the issuance, sale and delivery of the $17,230,000 City of Santa Clarita Community Facilities District No. 2016-1 (Vista Canyon) Special Tax Bonds 2020 Series (the "Bonds"), the Grantor and Vista Canyon Master Association, a California non-profit mutual benefit corporation (the "Association"), entered into and delivered the Parking Management Services Agreement For Parking Structure 1, dated as of October 21, 2020 (the "Management Agreement"), under which the Association agreed to manage the Parking Facility. G. The Parties acknowledge that the Association is in default under the Management Agreement with respect to timely recordkeeping and reimbursement requests, maintenance standards, and outstanding delinquencies in the payment of special taxes relating to the City of Santa Clarita Community Facilities District No. 2020-1 (Cooper Street) (the "Cooper Street CFD"). H. Due to the intent of the parties to terminate the Management Agreement by entering into a Termination of Parking Management Services Agreement for Parking Structure 1 and Settlement Agreement (the "Management Termination Agreement"), the Parties hereto desire to amend and restate in full the Parking Easement Agreement to reflect payment of Grantee's contribution of operating costs of the Parking Facility to the City. I. The recitals set forth above are true and correct and, by this reference, are made an operative part of this Agreement. NOW, THEREFORE, for and in consideration of the mutual covenants and promises herein contained, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties agree as follows: 1 . Easements. Grantor hereby grants and conveys to Grantee and its successors, assigns, agents, permittees or invitees, (a) an exclusive, perpetual easement for the use and maintenance of the Parking Spaces, together with the installation, maintenance and repair of all necessary or appropriate fixtures and appurtenances thereto (collectively, the "Tenant Parking Facilities") in the Easement Areas; (b) a nonexclusive perpetual easement in, over, upon and through the Parking Facility for ingress and egress purposes to the Easement Areas; and (c) a nonexclusive, perpetual easement in, under, over, and upon the Parking Facility for electrical lines, conduits, strands, wires, cables, hardware and junction boxes with regard to gating and other fixtures and appurtenances to the Parking Spaces as Grantee may deem to be necessary or appropriate from time to time (the "Parking Fixtures") (collectively, and on the terms and subject to the conditions set forth in this Agreement, the "Easements"). 2. Use. As of the Effective Date and pursuant to the Management Termination Agreement, Grantor has shall manage, operate and maintain the Parking Facility (the "Manager"). Grantee shall, at its sole cost and expense, use and maintain in good and safe order and condition and state of repair (including without limitation periodic striping of Parking Spaces) the Tenant Parking Facilities, and install, maintain, repair and replace, as necessary, the Parking Fixtures at the Tenant Parking Facilities; provided that use of the Tenant Parking Facilities shall be limited to 0 residents of each of the Dominant Tenements or their permittees or invitees; provided further that, if any such maintenance, repair or replacement is undertaken by Grantor as Manager, Grantee will be responsible for the cost of such maintenance, repair or replacement. Grantee shall have the further right to use during the installation, repair and replacement of any Parking Fixtures such areas adjacent to the easements herein granted as may reasonably be necessary for the performance of the work and for access to the work during installation, repair and replacement; provided, that such use is to be made in a manner calculated to cause as little interference with the use of the remaining portions of the Parking Facility as is reasonably possible. The Parking Fixtures shall at all times remain the exclusive property of Grantee. Grantor shall not interfere with Grantee's rights and operations hereunder; provided that Grantor, its successors, assigns, or agents, and as Manager, shall have the right to access the Easement Area for any purpose which is not inconsistent with Grantee's rights herein, and Grantee, its successors or assigns shall not reduce or alter the number of Parking Spaces without Grantor approval. 3. Contribution to Operating Costs of Parking Facility. In addition to Grantee's obligations in Section 2 hereof, on an annual basis by April 10 ( "Payment Date"), Grantee shall pay to Grantor Grantee's Proportionate Share of the Operating Costs of the Parking Facility. Grantor shall provide an expense budget by July 1. "Operating Costs" means all costs and expenses of every kind and nature paid or incurred by Grantor or Manager, as applicable, in connection with the maintenance, repair, replacement, operation, protection, lighting and policing of the Parking Facility. The "Grantee's Proportionate Share" of costs are based on the proportion that the number of Parking Spaces bears to the total number of parking spaces in the Parking Facility, which is currently 84 spaces out of 613 total spaces or 13.7%. Grantor shall furnish to Grantee an expense statement (in reasonable detail) for actual Operating Costs incurred for the period covered at the request of the Grantee. A 10% penalty will be charged if paid after April 10 and 1.5% monthly interest will be charged beginning July 1 of the following year. Grantee shall have the right, not more frequently than once per calendar year, after notice to Grantor or Manager, as applicable, and at reasonable times, to inspect and photocopy Grantor's or Manager's records (including invoices) relating to Operating Costs. If Grantee disputes any Operating Costs, Grantee will be entitled, not later than one year following the calendar year in question, to retain an independent certified public accountant applying generally accepted accounting industry standards, who is not contracted or compensated on a contingency fee basis and who has not been employed by Grantee in the preceding five (5) years, to audit such records for the calendar year in question. If the audit determines that Grantee was overcharged, then, within thirty (30) days of Grantor's or Manager's inspection of the audit, Grantor or Manager, as applicable, shall credit Grantee the amount of the overcharge toward the payments of Grantee's Proportionate Share of Operating Costs next coming due hereunder. If the audit determines that Grantee has been undercharged, Grantee shall remit to Grantor or Manager, as applicable, such amount with Grantee's Proportionate Share of the Operating Costs next coming due hereunder. Grantee agrees to pay the cost of the audit, unless the audit determines that Grantor's or Manager's calculation of Operating Costs was in error by more than five percent (5%), in which case Grantor or Manager, as applicable, shall pay for the reasonable cost of the audit (but in no event shall such payment exceed the amount of the overcharge determined by such audit). 4. Indemnity. To the extent permitted by law, Grantee shall indemnify, defend and hold Grantor and Manager harmless from any and all claims, damages, liabilities, costs and 3 expenses, of every nature and kind whatsoever, arising from or on account of the use by Grantee and its successors, assigns, agents, permittees, invitees and residents of the Dominant Tenements (and their permittees, guests and invitees) of the easements herein granted. 5. Warranty of Title. Grantor, for itself, its successors and assigns, does hereby covenant and agree with Grantee, and its successors and assigns, that Grantor at the time of execution of this Agreement has the good right, title and authority to enter into this Agreement. 6. Successors and Assigns. The easements herein granted are intended to run with the land and shall be a burden on the Property and bind Grantor and its successors and assigns and shall inure to the benefit of Grantee and its successors and assigns; provided that, from and after any such succession or assignment by Grantee of all or any portion of its rights hereunder that is approved in writing by the Grantor, Grantee shall no longer be liable or responsible for any of the obligations of Grantee hereunder arising thereafter relating to the rights so assigned, and Grantor or Manager, as applicable, shall look solely to such successor or assignee with regard to such obligations. 7. Amendment. No termination or amendment of any of the provisions of this Agreement shall be effective unless in writing and signed by the parties hereto. No waiver of any of the provisions of this Agreement shall be effective unless it is in writing, signed by the parry against whom it is asserted, and any such written waiver shall only be applicable to the specific instance to which it relates and shall not be deemed to be a continuing or permanent waiver unless so specifically stated. 8. Severability. The provisions of this Agreement are severable. If any provision hereof shall be determined to be invalid or unenforceable, it shall not affect the validity of any remaining provisions herein and all remaining provisions shall be given full force and effect separately from the invalid or unenforceable provision. 9. Captions. The captions and section headings of this Agreement are for convenient reference only and in no way define, describe, extend or limit the scope or intent of this Agreement nor the intent of any provision hereof. 10. Attorneys' Fees. If any legal action or proceeding arising out of or relating to this Agreement is brought by either Party to this Agreement, the prevailing Parry will be entitled to receive from the other Party, in addition to any other relief that may be granted, the reasonable attorneys' fees, costs, and expenses incurred in the action or proceeding by the prevailing Parry as fixed by the court. 11. Request for Notice. Grantee requests that it receive notice of any pending trustee or foreclosure sale or receivership, bankruptcy or other proceeding affecting the Parking Facility, sent to the address above or to such further address of record provided from time to time. [signature page follows] S IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first above written. CITY OF SANTA CLARITA By ATTEST: By: City Clerk APPROVED AS TO FORM: By: City Attorney Vista Canyon Ranch, LLC a California limited liability company By: JSJ Partners, LLC, a California limited liability company its: Manager By: JSB Development, Inc., a California corporation its: Member By: Kenneth W. Striplin City Manager James S. Backer, President Mailing Address: 27651 Lincoln Place, 9260 Santa Clarita, CA 91387 Telephone Email: 5 661-210-7355 JBacker 2jsbdev.com A NOTARY PUBLIC OR OTHER OFFICER COMPLETING THIS CERTIFICATE VERIFIES ONLY THE IDENTITY OF THE INDIVIDUAL WHO SIGNED THE DOCUMENT TO WHICH THIS CERTIFICATE IS ATTACHED, AND NOT THE TRUTHFULNESS, ACCURACY OR VALIDITY OF THAT DOCUMENT. STATE OF CALIFORNIA COUNTY OF LOS ANGELES On before me, (insert name of the officer), Notary Public, personally appeared , who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon which the person(s) acted, executed this instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. no [Seal] EXHIBIT 1 LEGAL DESCRIPTION OF PARKING FACILITY LOT 7 OF TRACT 69164-01, IN THE CITY OF SANTA CLARITA, COUNTY OF LOS ANGELES, STATE OF CALIFORNIA, AS PER MAP RECORDED IN BOOK 1396, PAGES 40 THROUGH 48, OF MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY EXHIBIT 2 LEGAL DESCRIPTION OF DOMINANT TENEMENTS LOTS 4 AND 12 OF TRACT 69164-01, IN THE CITY OF SANTA CLARITA, COUNTY OF LOS ANGELES, STATE OF CALIFORNIA, AS PER MAP RECORDED IN BOOK 1396, PAGES 40 THROUGH 48, OF MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY EXHIBIT 3 DESCRIPTION OF EASEMENT AREAS CI�GROUND LEVEL SIGNAGE AND STRIPING PLAN T- I -.N DEVELOPMENT GROUND LEVEL SIGNAGE AND JTRIPING PLAN A2 IA' 111-1 SECOND LEVEL SIGIIAGEAND STRIPING PLAN (+11 N DEVELOPMEPJT FCOND LEVEL S1GNJGE AND STRIPING PLAN -I,- A2.2A (�)THIRD LEVEL SIGNAGE AND STRIPING PLAN OEVELOPMEfJT -0- 7-/nZD LEVEL SIGNAGEAND STrIPING PLAN A23A �FOT LEVEL SIGNAGE AND STRIPING PLAN _'T _� LE� JSB 14 - — - — -�:s) FOURTH LEVEL SIGNAGE AND SMPING PLAN A24A RECORDING REQUESTED BY AND WHEN RECORDED RETURN TO: CITY OF SANTA CLARITA Attention: Director of Administrative Services 23920 Valencia Boulevard Santa Clarita, California 91355 TERMINATION OF EASEMENT AGREEMENT FOR SOLAR FACILITIES AND COMMUNITY IDENTIFICATION SIGNAGE BY AND BETWEEN VISTA CANYON RANCH, LLC AND CITY OF SANTA CLARITA DATED AS OF 2026 This is a financing document. No documentary transfer tax is due pursuant to Revenue and Taxation Code Section 11922 and this document is exempt from recording fees pursuant to Government Code Section 27383. TERMINATION OF EASEMENT AGREEMENT FOR SOLAR FACILITIES AND COMMUNITY IDENTIFICATION SIGNAGE This TERMINATION OF EASEMENT AGREEMENT FOR SOLAR FACILITIES AND COMMUNITY IDENTIFICATION SIGNAGE (the "Termination") is made and entered into as of , 2026, by and between Vista Canyon Ranch, LLC (the "Developer"), and the City of Santa Clarita (the "City"), and with reference to the following facts: WHEREAS, the City, the Developer, and Vista Canyon Phase I, LLC, are parties to that certain Funding and Acquisition Agreement dated as of April 12, 2016 (the "Acquisition Agreement"), under which the City acquired a multi -story parking facility known as Parking Structure 1 located within the Vista Canyon project (the "Parking Facility"), as more specifically described on Exhibit A attached hereto and made a part hereof, WHEREAS, in connection with the issuance, sale and delivery of the $17,230,000 City of Santa Clarita Community Facilities District No. 2016-1 (Vista Canyon) Special Tax Bonds 2020 Series (the "Bonds"), the City and Vista Canyon Master Association, a California non-profit mutual benefit corporation (the "Association"), entered into and delivered the Parking Management Services Agreement For Parking Structure 1, dated as of October 21, 2020 (the "Management Agreement"), under which the Association agreed to manage the Parking Facility; WHEREAS, the parties acknowledge that the Association is in default under the Management Agreement with respect to timely recordkeeping and reimbursement requests, maintenance standards, and outstanding delinquencies in the payment of special taxes relating to the City of Santa Clarita Community Facilities District No. 2020-1 (Cooper Street) (the "Cooper Street CFD"); WHEREAS, the City and the Developer also entered into an Easement Agreement For Solar Facilities and Community Identification Signage dated as of October 21, 2020 (the "Solar and Signage Easement Agreement"), recorded on November 2, 2020, as Document No. 20201373408, in the Office of the Los Angeles County Recorder, State of California; and WHEREAS, due to the intent of the parties to terminate the Management Agreement by entering into a Termination of Parking Management Services Agreement For Parking Structure I (the "Management Termination Agreement"), the parties hereto desire to terminate the Solar and Signage Easement Agreement. NOW, THEREFORE, for and in consideration of the mutual covenants and promises herein contained, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, both parties hereto agree as follows: 1. Effectiveness of Agreement. This Agreement shall become effective on , 2026 (the "Effective Date"). 2. Termination of Solar and Signage Easement Agreement. The parties hereto agree that the Solar and Signage Easement Agreement shall be terminated, canceled and released in all respects as of the Effective Date. 3. Whole Agreement. The mutual obligations of the parties as provided herein are the sole consideration for this Termination, and no representations, promises or inducements have been made by the parties other than as appear in this Termination. This Termination may not be amended except in writing signed by the parties hereto. 4. Mutual Releases. In consideration of terminating and releasing the Solar and Signage Easement Agreement, and the representations and other agreements herein contained, subsequent to the Effective Date, the parties hereby release and forever discharge each other, and their respective partners, members, officers, directors, agents, trustees, beneficiaries and employees, of and from any and all known losses, expenses, injuries, claims, acts, damages, demands, rights of action and causes of action which each party ever had, or has, against the other, arising from or in any way connected with the Solar and Signage Easement Agreement. This release is intended as a full settlement and compromise of each, every and all claims of every kind and nature relating to the Solar and Signage Easement Agreement or any person claiming through the City or the Developer. 5. Miscellaneous. Warranties, representations, agreements and obligations contained in this Termination shall survive the execution and delivery of this Termination and shall survive any and all performances in accordance with this Termination. This Termination may be executed in any number of counterparts which together shall constitute the Termination. If any party obtains a judgment against any other parry by reason of breach of this Termination, reasonable attorneys' fees as fixed by the court shall be included in such judgment. This Termination and the terms and provisions hereof shall inure to the benefit of and be binding upon the heirs, successors and assigns of the parties. This Termination shall be construed and enforced in accordance with the laws of the State of California. 2 IN WITNESS WHEREOF, the parties have executed this Termination as of the date first above written. VISTA CANYON RANCH, LLC, a California limited liability company By: JSB Development, Inc., a California corporation Its: Manager LIM By: Valencia Realty Partners, LLC, a California limited liability company Its: Member By: CITY OF SANTA CLARITA :1 ATTEST I:1 City Clerk APPROVED AS TO FORM: By: City Attorney 9 Kenneth W. Striplin City Manager A NOTARY PUBLIC OR OTHER OFFICER COMPLETING THIS CERTIFICATE VERIFIES ONLY THE IDENTITY OF THE INDIVIDUAL WHO SIGNED THE DOCUMENT TO WHICH THIS CERTIFICATE IS ATTACHED, AND NOT THE TRUTHFULNESS, ACCURACY OR VALIDITY OF THAT DOCUMENT. STATE OF CALIFORNIA COUNTY OF LOS ANGELES On before me, (insert name of the officer), Notary Public, personally appeared , who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon which the person(s) acted, executed this instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. [Seal] EXHIBIT A LEGAL DESCRIPTION OF PARKING FACILITY LOT 7 OF TRACT 69164-01, IN THE CITY OF SANTA CLARITA, COUNTY OF LOS ANGELES, STATE OF CALIFORNIA, AS PER MAP RECORDED IN BOOK 1396, PAGES 40 THROUGH 48, OF MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY