REGULAR MEETING of the BOARD of TRUSTEES LOCATION: TELECONFERENCE – SEE BELOW July 14, 2021 6:00 PM AGENDA

REGULAR MEETING OF THE BOARD OF TRUSTEES LOCATION: TELECONFERENCE – SEE BELOW July 14, 2021 6:00 PM AGENDA

IMPORANT NOTICE REGARDING COVID-19 AND TELECONFERENCED MEETINGS: Based on the mandates by the Governor in Executive Order 33-20 and the County Public Health Officer to shelter in place and the guidance from the CDC, to minimize the spread of the coronavirus, please note the following changes to the District’s ordinary meeting procedures: - The District offices are not open to the public at this time. (See District’s Promulgation of Rules and Orders) - The meeting will be conducted via teleconference using Zoom. (See Executive Order 29-20) - All members of the public seeking to observe and/or to address the local legislative body may participate in the meeting telephonically or otherwise electronically in the manner described below.

HOW TO OBSERVE THE MEETING: Telephone: Listen to the meeting live by calling Zoom at (408) 636-0968 or (669) 900-6833. Enter the Meeting ID# 650-344-8592 followed by the pound (#) key. More phone numbers can be found on Zoom’s website at https://zoom.us/u/abb4GNs5xM if the line is busy. Computer: Watch the live streaming of the meeting from a computer by navigating to https://zoom.us/j/6503448592 using a computer with internet access that meets Zoom’s system requirements (see https://support.zoom.us/hc/en-us/articles/201362023-System-Requirements-for-PC-Mac-and-Linux) Mobile: Log in through the Zoom mobile app on a smartphone and enter Meeting ID# 650-344-8592. NOTE: This is a public meeting that can be seen and heard live by any member of the public. It will be recorded to facilitate taking meeting minutes.

HOW TO SUBMIT PUBLIC COMMENTS: Written / Read Aloud: Please email your comments to [email protected], write “Public Comment” in the subject line. In the body of the email, include the agenda item number and title, as well as your comments. If you would like your comment to be read aloud at the meeting (not to exceed three minutes at staff’s cadence), prominently write “Read Aloud at Meeting” at the top of the email. All comments received before 12:00 PM the day of the meeting will be included as an agenda supplement on the District’s website under the relevant meeting date Page 1 | 5

and provided to the Trustees at the meeting. Comments received after this time will be treated as concurrent comments.

Concurrent Comments: During the meeting, the Board President or designee will announce the opportunity to make public comments and identify the cut off time for submission. A short recess (generally less than 5 minutes) will take place during the time public comment is open to allow the comments to be collected. Please email your comments to [email protected], write “Public Comment” in the subject line. In the body of the email, include the agenda item number and title, as well as your comments. Once the public comment period is closed, all comments timely received will be read aloud. Comments received after the close of the public comment period will be added to the record after the meeting.

ACCESSIBILITY INFORMATION: Board Meetings are accessible to people with disabilities and others who need assistance. Individuals who need special assistance or a disability-related modification or accommodation (including auxiliary aids or services) to observe and/or participate in this meeting and access meeting-related materials should contact Brian Weber, District Manager, at least 48 hours before the meeting at (650) 344-8592 or [email protected]. Advanced notification will enable the District to swiftly resolve such requests to ensure accessibility.

PUBLIC RECORDS: Public records that relate to any item on the open session agenda for a meeting are available for public inspection. Those records that are distributed after the agenda posting deadline for the meeting are available for public inspection at the same time they are distributed to all or a majority of the members of the Board. The Board has designated the District’s website located at https://www.smcmvcd.org/board-meetings as the place for making those public records available for inspection. The documents may also be obtained by calling the District Manager.

1. CALL TO ORDER 2. PLEDGE OF ALLEGIANCE 3. ROLL CALL

• Secretary of the Board will take roll call 4. PUBLIC COMMENTS AND ANNOUCEMENTS

2 • This time is reserved for members of the public to address the Board relative to matters of the District not on the agenda. No action may be taken on non-agenda items unless authorized by law. Comments will be limited to three minutes per person (or six minutes where a translator is being used). Speaker cards are available for those making a public comment

5. CONSENT CALENDAR

• All items on the Consent Calendar will be considered by one (or more) action(s) of the Board, unless any Trustee would like to discuss any item listed, in which case, it may be pulled from the Consent Calendar.

A. Approval of Minutes 1. Minutes for the Regular Board Meeting, June 9, 2021

B. Approval of Contracts and Agreements 1. Master Agreement for the control of Invasive Spartina 2. Department of technology non-state entity service policy and agreement for Verizon phone services

C. Retirement of assets 1. Retirement of three pickup trucks from fixed asset inventory

ACTION: Motion to approve Consent Calendar

REGULAR AGENDA 6. PUBLIC HEARING – Regarding the continuation of the District’s special parcel tax within the original boundaries

ACTIONU :U Motion to open Public Hearing

• This is the opportunity for any public members to address the Board with questions/comments relevant to the setting of the Special Tax

ACTIONU :U Motion to close Public Hearing

3 7. RESOLUTION M-007-21 – SPECIAL TAX MAINTAINING THE AMOUNT OF THE SPECIAL MOSQUITO CONTROL TAX WITHOUT CHANGES FOR MOSQUITO CONTROL SERVICES WITHIN THE ORIGINALLY DESIGNATED CITIES AND UNINCORPORATED AREAS FOR FISCAL YEAR 2021- 2022 AND AUTHORIZING THE CONTINUED COLLECTION OF THE TAX Report by: Sonia Ortega SCI ACTION: Motion to approve Resolution M-007-21

8. RESOLUTION M-009-21 - SITE LEASE AND A LEASE AGREEMENT RESOLUTION OF THE SAN MATEO COUNTY MOSQUITO AND VECTOR CONTROL DISTRICT APPROVING A SITE LEASE AND A LEASE AGREEMENT; MAKING CERTAIN DETERMINATIONS RELATING THERETO; AND AUTHORIZING CERTAIN OTHER ACTIONS IN CONNECTION THEREWITH

Report by: Staff member at Municipal Finance Corporation

ACTION: Motion to approve Resolution M-009-21

9. BOARD COMMITTEE REPORTS. The Chair of each of the following committees will present a brief report on the committee’s actions since the last report and present any recommendations to the Board.

A. Finance Committee Report

A.1 Review and Discuss Long Term Capital Improvement Plan and Long-Term Financial Projections as of July 6, 2021

Report by: Finance Director, Richard Arrow, CPA

ACTION: Motion to recommend the Board approve the Long-Term Capital Improvement Plan and District Financial Projections as of July 6, 2021

B. Inactive Committees

4 10. FINANCIAL REPORT

Review Financial Report for May 2021

Finance Director, Richard Arrow

ACTION: Motion to approve Financial Report for May 2021

11. STAFF REPORTS

A. Field Supervisor, Casey Stevenson will provide an update on Field Operations Programs

B. Laboratory Director, Angie Nakano will provide an update on District Laboratory Programs

C. Public Health Education and Outreach Officer, Rachel Curtis-Robles will provide an update on the District Public Outreach Programs

D. Information Technology Director, David Kwan will provide an update on IT projects

12. RESOLUTION M-008-21 – HONORING CLAUDIA MAZZETTI

13. Consider deferring to the Policy Committee the use of a hybrid model meeting under certain circumstances

14. Trustee attendance at the Leadership Academy of the California Special District Association Meeting in Lake Tahoe, CA

15. MANAGER’S REPORT

16. BOARD MEMBER COMMENTS AND ANNOUCEMENTS

17. The Board does not meet in August. The September Board meeting will be held on September 8, 2021, the 2nd Wednesday of the Month.

18. ADJOURNMENT

5 San Mateo County MVCD Board of Trustees Meeting July 14, 2021

Agenda Item 5 SUBJECT: CONSENT CALENDAR

RECOMMENDATION

Staff recommends the Board approve the Consent Calendar.

BACKGROUND The Consent Calendar consists of items that require approval or acceptance but are self- explanatory. All items on the Consent Calendar will be considered by one (or more) action(s) of the Board, unless any Trustee would like to discuss any item listed, in which case, it may be pulled from the Consent Calendar.

Item 5A Approval of Minutes 1. Board Secretary, Donna Rutherford has completed minutes of the June 9, 2021, Board of Trustees meeting. Item 5B Approval of Contracts and Agreements 1. Approve authorizing the District Manager to sign an Agreement with the California Invasive Plant Council (Cal-IPC) for work related to the control of invasive Spartina (Cordgrass) in San Mateo County.

2. Approve authorizing the District Manager to enroll into the CALNET contract for continuation of Verizon Wireless Services.

Item 5C Retirement of Vehicles

1. Retirement of three pickup trucks from fixed asset inventory

Items 5B.1, 5B.2 and 5C were evaluated by legal counsel and recommended by the Finance Committee

MATERIALS ATTACHED

A. Minutes 1. June 9, 2021, Board Meeting Minutes

B. Contracts and Agreements 1.1. Invasive Spartina Master Agreement 1.2. Invasive Spartina Workplan

San Mateo County MVCD Board of Trustees Meeting July 14, 2021

2.1. California Department of Technology (CALNET) Non-State Entity Service Policy and Agreement (NESPA) for Cellular Business Services from Cellco Partnership d/b/a Verizon Wireless

C. Retirement of Vehicles

1. Fixed Asset Retirement Request Form

REGULAR MEETING OF THE BOARD OF TRUSTEES TELECONFERENCE- June 9, 2021 6:00 P.M.

A meeting of the Board of Trustees of the San Mateo County Mosquito and Vector Control District was held June 9, 2021. Location: Teleconference

TRUSTEES PRESENT:

Mason Brutschy Town of Atherton Wade Leschyn City of Belmont Joe Galligan City of Burlingame Carolyn Parker City of Brisbane Glenn Sylvester Daly City Donna Rutherford City of East Palo Alto Catherine Mahanpour Foster City Kati Martin City of Half Moon Bay D. Scott Smith Hillsborough Catherine Carlton Menlo Park Peter DeJarnatt Pacifica Ray Williams Town of Portola Valley Kat Lion City of Redwood City Robert Riechel City of San Bruno Ross Graves City of San Carlos VACANT South San Francisco Ed Degliantoni San Mateo Paul Fregulia Town of Woodside Muhammad Baluom City of Millbrae

TRUSTEES ABSENT:

Laura Walsh City of Colma (excused)

OTHERS PRESENT: District Manager, Brian Weber Interimn Fi ance Director, Richard Arrow General Counsel, Alexandra Barnhill IT Director, David Kwan Public Information and Outreach Officer, Rachel Curtis-Robles Laboy D rator irector, Angie Nakano Field Operations Supervisor, Casey Stevenson

1 Sonia Ortega, Project Analyst, SCI Consulting Group

1. CALL TO ORDER

The meeting was called to order at 6:00 P.M.by President Kati Martin.

2. PLEDGE OF ALLEGIANCE

Led by Trustee Joe Galligan.

3. ROLL CALL

The roll call indicated that 17 Trustees were present on Teleconference, constituting a quorum.

4. PUBLIC COMMENTS AND ANNOUNCEMENTS

President Martin reviewed the process to be used going forward during the Teleconference of the meeting to the Board of Trustees, Staff and Public.

Public Comment: None

Board Comment: None

5. CONSENT CALENDAR

Item 5.A.1 Approval of Minutes for May 12, 2021 Regular Board Meeting

Item.5. B. 1. Approval of two Single Axle HD Tilt Trailers 2. Approval of the purchase of a DJI Agras T20 Sprayer UAS from Talos Drone 3. Approval of District Manager enter into an Agreement for Informal Biological Evaluation in the amount of $8,242.00

Public Comment: on Items 5.A.1, 5.B. 1, 2, 3 None Board Comment: None

ACTION: MOTION by Trustee Wade Leschyn, second by Trustee Ed Degliantoni to approve Item 5.A.1 and 5.B.1, 2, 3 on Consent Calendar. Motion passed 17 yeas, 0 noes.

REGULAR AGENDA

6. SPECIAL PRESENTATIONS Sonia Ortega, Project Analyst, SCI Consulting Group presented the Engineer’s Report confirming the Assessment Diagram and ordering the levy of assessment for fiscal year 2021-22 at the same rate fiscal year 2019-20. Resolution M-006-21

Public Comment: 6. A. None Board Comment: None

ACTION: Motion by Trustee Scott Smith, second by Trustee Joe Galligan to approve Resolution M- 006-21. Motion passed 17 yeas, 0 noes.

7. BOARD COMMITTEE REPORTS

A. Finance Committee.

Finance and Policy Committee members attended a combined meeting met on June 3, 2021. Committee Chairs Mason Brutschy, Robert Riechel and committee members reviewed and recommend approval of the following:

FY 21-22 Final Budget with minor adjustments to FY 20-21 Budget, Creation of a Debt Service Repayment Reserve, Funding levels of District Reserve Funds for FY ended June 30, 2021, Board approval of the Operations Director Job description and amend Districts’ Organizational Chart adding an Operations Director, Amend the Agreement for the Interim Finance Directors to increase hourly rate by 3%, lastly approve purchases of vehicle trailers and Unmanned Aircraft System.

Public Comment: None Board Comment: None

ACTION: Motion by Trustee Robert Riechel, second by Trustee Scott Smith to approve FY 20-21 Budget with adjustments. Motion passed 17 yeas, 0 noes.

ACTION: Motion by Trustee Peter DeJarnatt, second by Trustee Glenn Sylvester to approve the Creation of the District Debt Service Repayment Reserve Fund. Motion passed 17 yeas, 0 noes.

Trustee Catherine Carlton joined the meeting at 6:30.

ACTION: Motion by Trustee Carolyn Parker, second by Ed Degliantoni to approve allocation of District Reserve Funds. Motion passed 18 yeas, 0 noes.

B. Strategic Planning Committee

Strategic Planning Committee Chair Ed Degliantoni and the committee met on May 24, 2021. They discussed the following items amending policy 2100 Job Descriptions, policy 2220 Organizational Chart to reflect the creation of Operations Director. The committee recommends the Board approve these items.

Public Comment: None Board Comments: Several Board members made comments supporting the changes.

ACTION: Motion by Trustee Donna Rutherford, second by Trustee Ed Degliantoni to amend policy 2100 Job Descriptions and policy 2220 Organizational Chart. Motion passed 18 yeas, 0 noes.

C. Inactive Committee

Public Comment: None Board Comment: None

8. FINANCIAL REPORT

A. Financial Director Richard Arrow presented the Monthly Financial Report ending April 2021. Total revenues received from July 1, through April were 5.5 million; total expenditures YTD were $4.4 million’ and the change in fund balance was $1.1 million. The District had 10.9 million in cash available in County Treasure.

Public Comment: None Board Comment:

ACTION: Motion by Trustee Mason Brutschy, second by Trustee Wade Leschyn to approve Financial Report for April 2021. Motion passed 18 yeas, 0 noes..

9. STAFF REPORTS

A. Field Operations Supervisor, Casey Stevenson provided a written report in the Board Packet.

He highlighted in his report that the Mosquito calls from residents were below average, staff training were taking place.

B. Laboratory Director, Angie Nakano, provided a written report in the Board Packet. She highlighted collaboration efforts with the universities is ongoing.

C. Public Health Education and Outreach Officer, Rachel Curtis-Robles provided a written report in the Board Packet. She indicated that the new district website will be up and running very soon. She also reminded Trustees to have their cities provide a Proclamation in support of National Mosquito Awareness Week. The District had a Booth at the San Mateo County Fair.

D. Information Technology Director, David Kwan provided a written report in the Board Packet. He reported seeking Microsoft support to provide help with some difficulties with the standard Microsoft support. He is working on a Security and Strategic Plan.

Public Comment: On Items 9.A. B. C. D. None Board Comment: There was a brief question and answer regarding the science of mosquito sterilization.

10. CLOSED SESSION

PUBLIC EMPLOYEE PERFORMANCE EVALUATION Title: Interim Finance Director (Government Code Section 54957)

There was reportable Action to increase to the Interim Finance Director’s hourly rate by 3% via an amendment to agreement with the Interim Finance Director.

ACTION: Motion by Trustee Joe Galligan, second by Muhammad Baluom to approve the increase. Passed 18 yeas, 0 noes.

Public Comment: None Board Comment:

11. MANAGERS REPORT

District Manager Brian Weber provided a written report in the Board Packet. He informed the Board of the reason for the hiring of an additional Vector Control Technician. The District has seen an increase in service call. He provided material for justification for the position.

12. BOARD MEMBER COMMENTS AND ANNOUNCEMENTS

President Kati Martin made remarks regarding the passing of Trustee Claudia Mazzetti. She and VP Kat Lion attended the service it was well attended by many people who loved her. We will miss her service to the District. The Board of Trustees had a moment of silence in her honor.

The July Board meeting will be held on July 14, 2021.

13. ADJOURNED 7:40 P.M.

______Kati Martin, Board President Donna Rutherford, Board Secretary

I certify the above minutes were approved as read or corrected at a meeting of the Board held, 2021.

** All reports that were provided to the trustees at the board meeting will be available upon request.

Approved: ______District Manager Board President

San Mateo County MVCD Board of Trustees Meeting July 14, 2021 ______

Agenda Item 5B SUBJECT: Approval of Agreement with the California Invasive Plant Council for Control of Invasive Spartina

SUMMARY

Staff is asking the Board to approve authorizing the District Manager to sign an Agreement with the California Invasive Plant Council (Cal-IPC) for work related to the control of invasive Spartina (Cordgrass) in San Mateo County.

BACKGROUND

Invasive cordgrass (Spartina spp.) is a perennial grass that grows in the intertidal zone of salt marshes worldwide. This invasive plant is highly aggressive and has significantly altered both the physical structure and biological composition of our tidal marshes, mudflats, and creeks along the San Francisco Bay. This altered habitat impedes tidal flows and creates an environment for salt marsh mosquitoes to lay their eggs. Further, where invasive cordgrass exists, diked saltmarshes cannot be opened to tidal flow because opening these areas encourages the expansion of the invasive cordgrass into ever larger areas. Salt marsh mosquitoes developing in these diked areas severely impact the neighboring communities. San Mateo County Mosquito and Vector Control District has assisted in eradicating invasive cordgrass for the past 16 years. Elimination of large colonies of invasive cordgrass allowed the breaching of levees around most of the former salt ponds of the Bair Island complex in Redwood City. Prior to these breaches, the District treated nearly 3,000 acres of salt marsh every winter to prevent the emergence of winter salt march mosquitoes. Much of this work required distribution of bacterial larvicides by helicopter. The District has worked with the Coastal Conservancy, US Fish and Wildlife Service and other agencies over the past several years and reduced the colonized area significantly. This project has also helped strengthen the District’s relationship with regulatory agencies.

More information on the Invasive Spartina Project in San Francisco Bay can be found at http://spartina.org/).

Master Agreement, Work Authorization and Work Plan

The attached Master Agreement authorizes Cal-IPC to contract with the District to conduct control of Invasive Spartina in salt marshes in San Mateo County. The District will be reimbursed for San Mateo County MVCD Board of Trustees Meeting July 14, 2021 ______personnel and equipment. Materials will be supplied by Cal-IPC. A portion of this grant involves helicopter applications to a section of Bair Island (former salt pond B-2). The District will contract with Alpine Helicopter and be reimbursed by Cal-IPC for $6,000 for this work. The District will District will be paid $71,204.62 for time and equipment use for two treatment seasons in 2021-2022 ($39,073.50 in 2021 and $32,131.12 in 2022) as outlined in the Work Plan Work Authorization.

The Work Authorization and Work Plan are created annually and describe treatment locations, schedule, scope of work, budget and payment schedule. The California Coastal Conservancy provides the Funding for the control of invasive Spartina throughout San Francisco Bay and the funding has been awarded to the Cal-IPC. Cal-IPC proposes to contract with the District for work done in San Mateo County.

RECCOMENDATION

MATERIALS ATTACHED

1. Master Agreement with California Invasive Plant Council for Contracting Services 2. ISP Work plan

California Invasive Plant Council

Master Agreement for Contracting Services

This Master Agreement for Contracting Services (“Agreement”) is entered into on 1 June 2021 (“Effective Date”) by and between the San Mateo County Mosquito & Vector Control District (“Contractor”), with their principal place of business located at 1351 Rollins Road, Burlingame, CA 94010 and California Invasive Plant Council (“ Cal-IPC”), a California non-profit corporation with its principal place of business located at 1442-A Walnut Street, #462, Berkeley CA 94709.

Recitals

A. The parties desire to enter into this Agreement for the purpose of engaging Contractor to provide certain services in support of the work of Cal-IPC and the Restoration Authority (“Funder”).

B. This Agreement will serve as the basis for Work Authorization(s) to be entered into between Contractor and Cal-IPC, with the concurrence of the Restoration Authority.

C. The individual Work Authorization(s) will define the scope of work to be undertaken by Contractor and the compensation to be paid for such work.

NOW, THEREFORE, the parties agree as follows:

1. Services Provided. Cal-IPC and Contractor agree as of the Effective Date above, that Contractor shall provide services to Cal-IPC under the terms of this Agreement. Each request for services shall be in the form set forth in Work Authorizations agreed to and signed by Cal-IPC and Contractor, the terms of which are incorporated herein by reference. Contractor shall provide the services in accordance with the applicable Work Authorization and the terms and conditions set forth herein.

2. Term. The Contractor agrees to complete all project activities by date(s) specified in Work Authorization(s) under Schedule of Work. The term of this Agreement is from Effective Date to 31 January 2024 and may be extended in subsequent Work Authorizations, if any.

3. Compensation. Compensation amount and payment terms shall be set forth in the Work Authorization(s). Compensation payable under this Agreement takes into account and includes all taxes, wages, costs of any type and profits that are incidental to Contractor’s performance of the services. If applicable law specifically provides for direct payment by Cal-IPC of any such items, such amounts shall be deducted from payments to be made directly to Contractor. Cal- IPC may withhold five percent (5%) from all payments on any project entered into via a Work Authorization, specified in Work Authorization, to be released upon satisfactory completion of said project.

3.1 Invoicing and Payment. Contractor shall invoice Cal-IPC on a quarterly or monthly basis. All invoices shall be sent via email direct to Dr. Jutta Burger at [email protected] and Mr. Agustin Luna at [email protected]. Invoices should be received by Cal-IPC no later than the 10th day of the month following the end of the period worked. Invoices shall provide sufficient detail regarding expenditures and work performed, with expenses tied to contracted services. Cal-IPC will review and approve invoices promptly. Payment will be made after Cal-IPC receives payment for its reimbursement request to Funder.

4. Modification. This Agreement and any attached Work Authorization(s) may be amended by mutual written consent of Cal-IPC and Contractor. Amendments become effective only when in writing and fully executed by authorized officers of both parties.

5. Independent Contractors. Contractor is independent and wholly responsible for the manner in which it performs services required by terms of this Agreement. And unless otherwise stated in the applicable Work Authorization(s), Contractor shall provide all tools, materials, equipment and labor required for the prompt completion of the services. Contractor shall perform the services as independent contractors and not as employees of Cal-IPC. Contractor shall obtain all necessary permits, shall comply with all applicable laws and authorizations, take all required or appropriate safety precautions, and, to the extent work is performed on Cal-IPC’s premises, abide by all Cal-IPC operating and safety rules. Employees of Contractor will not be entitled to any benefits payable to employees of Cal-IPC.

5.1 Contractor will advise all persons they assign or hire to perform any duty under this Agreement that they are not employees of Cal-IPC. In the event of any significant staffing changes during the project, Contractor will provide thirty (30) day advance written notice to Cal-IPC.

5.2 Contractor may not contract with or otherwise engage any subcontractor to perform work under this Agreement for services without the approval of Cal-IPC.

6. Confidential Information. During the term of this Agreement, and thereafter for a period of five (5) years, Contractor shall not, without the prior written consent of Cal-IPC, disclose to any third party any Confidential Information. “Confidential Information” for the purposes of this Agreement includes Cal-IPC proprietary and confidential information such as, but not limited to, donor names or lists, member names or lists, customer lists, business plans, marketing plans, financial information, designs, drawings, specifications, models, software, source codes, object codes, or any other information identified as such by Cal-IPC. Confidential Information does not include any information that (a) is disclosed by Cal-IPC without restriction; (b) becomes publicly available through no act of Contractor, or (c) is rightfully received by Contractor from a third party with the right to disclose the information. Contractor agrees that any developments or improvements resulting from Contractor’s services herein are solely owned by Cal-IPC, and Contractor further agrees to cooperate with Cal-IPC in its efforts to protect any of its intellectual property rights.

7. Other Clients. The parties agree that Contractor may provide services to other clients during the term of this Agreement. Contractor will provide, at the request of Cal-IPC, a list of other clients and will notify Cal-IPC if the list of clients changes. Whenever Contractor becomes aware of a conflict between a policy objective advocated by Cal-IPC or Funder and another client, Contractor will notify Cal-IPC. At the request of Cal-IPC, Contractor shall not represent Cal-IPC with respect to issues where such conflicts exist. Contractor will never under any circumstances provide representation on behalf of Cal-IPC that is in conflict with policies determined by Cal- IPC.

8. Indemnity. TO THE EXTENT PERMITTED BY LAW, CAL-IPC AND CONTRACTOR SHALL MUTUALLY HOLD HARMLESS, INDEMNIFY AND DEFEND EACH OTHER AND THEIR OFFICERS, AGENTS AND EMPLOYEES FROM EVERY EXPENSE, LIABILITY, OR PAYMENT BY REASON OF INJURY (INCLUDING DEATH) TO PERSON OR PROPERTY SUFFERED THROUGH ANY ACT OR OMISSION, INCLUDING PASSIVE NEGLIGENCE OR ACT OF NEGLIGENCE, OR BOTH DIRECTLY OR INDIRECTLY ARISING FROM THIS AGREEMENT. THIS PROVISION SHALL NOT BE DEEMED TO REQUIRE EITHER PARTY TO INDEMNIFY THE OTHER AGAINST LIABILITY OR DAMAGE ARISING FROM THE SOLE NEGLIGENCE OR WILLFUL MISCONDUCT OF THE OTHER, ITS AGENTS, OFFICERS OR EMPLOYEES. CONTRACTOR EXCLUSIVELY ASSUMES RESPONSIBILITY FOR ACTS OF ITS EMPLOYEES, ASSOCIATES, AND SUB-CONTRACTORS. CONTRACTOR SHALL BE RESPONSIBLE FOR PERFORMING THE WORK UNDER THIS AGREEMENT IN A SAFE, PROFESSIONAL, SKILLFUL AND WORKMANLIKE MANNER AND SHALL BE LIABLE FOR ITS OWN NEGLIGENCE AND NEGLIGENT ACTS OF ITS EMPLOYEES. CAL-IPC SHALL HAVE NO RIGHT OF CONTROL OVER THE MANNER IN WHICH WORK IS TO BE DONE AND SHALL, THEREFORE, NOT BE CHARGED WITH RESPONSIBILITY OF PREVENTING RISK TO CONTRACTOR OR ITS EMPLOYEES.

9. Insurance. Contractor agrees to be bound by the Insurance section of Cal-IPC’s grant with Funder, attached as Exhibit A and incorporated by reference into this Agreement.

10. Early Termination, Suspension and Failure to Perform. Before the project has commenced, either party may terminate this agreement for any reason by providing the other party with seven days’ notice in writing. Before the project is complete, Cal-IPC may terminate or suspend this agreement for any reason by providing Contractor with seven days’ notice in writing. In either case, Contractor shall immediately stop work under the agreement and take all reasonable measures to prevent further costs to Cal-IPC. Cal-IPC shall be responsible for any reasonable and non-cancelable obligations incurred by Contractor in the performance of this agreement prior to the date of the notice to terminate or suspend, but only up to the undisbursed balance of funding authorized in this agreement. Any notice suspending work under this agreement shall remain in effect until further written notice from Cal-IPC authorizes work to resume.

10.1 If Contractor fails to complete the project as required or fails to fulfill any other obligations of this agreement prior to the termination date, Contractor shall be liable for immediate repayment to Cal-IPC of all amounts disbursed by Cal-IPC under this agreement. Cal-

IPC may, at its sole discretion, consider extenuating circumstances and not require repayment for work partially completed. This paragraph shall not be deemed to limit any other remedies Cal-IPC may have for breach of this agreement.

10.2 Before the project is complete, Contractor may terminate this agreement for any reason by providing Cal-IPC with seven days’ notice in writing and repaying to Cal-IPC all amounts disbursed by the Cal-IPC under this agreement. Cal-IPC may, at its sole discretion, consider extenuating circumstances and allow early termination without repayment for work partially completed.

10.3 The parties expressly agree to waive, release and relinquish the recovery of any consequential damages that may arise out of the termination or suspension of this agreement under this section.

11. No Assignment. This Agreement may not be assigned and Contractor may not delegate its obligation hereunder without the prior written consent of Cal-IPC, which consent may be withheld in Cal-IPC’s sole discretion.

12. Records. Contractor shall maintain true and complete records in connection with the services and all transactions related thereto and shall retain such records for at least three (3) years after the end of the calendar year in which the services are performed. Auditors of Cal-IPC the Funder/State of California shall have the right to examine records relative to the services and materials provided under any grant funds used for authorized work performed by Contractor. Cal-IPC shall have the right any time to have a special audit review of the books of accounts and records of the Contractor at its own expense.

13. Compliance.

13.1 Payments. Except as otherwise expressly provided herein, neither Contractor nor any director, officer, employee, or agent of Contractor shall give to or receive from any director, officer, employee, or agent of Cal-IPC any gift, entertainment of significant value, other consideration, or any commission, fee or rebate in connection with the Agreement. In accordance with California law, no payment made to or received by Contractor shall be in any way contingent upon the defeat, enactment, or outcome of any proposed legislative or administrative act.

13.2 Prevailing Wage. Work done under this Agreement may be subject to the prevailing wage and other provisions of the California Labor Code requirements (see Labor Code sections 1720 et seq.). Contractor shall pay prevailing wage to all persons employed in the performance of any part of the project and otherwise comply with all associated requirements and obligations, if required by law to do so.

13.3 Contractor License Law. Contractor will comply with the California Business and Professions Code, known as the "Contractor's License Law", Sections 7000 through 7145. The

Contractor must possess an appropriate license that is current and valid at the date of the bid and throughout the term of this Agreement.

13.4 Health and Safety. The Contractor will comply with the health and safety requirements of the California Administrative Code, Title 8, Industrial Relations, Division of Industrial Safety.

14. Intellectual Property Ownership. Any work created by Contractor or contributed to by Contractor will be assigned to Cal-IPC. Contractor does hereby assign unto Cal-IPC all right, title and interest in and to any and all notes, lists, documentation, contributions to technology, or other work product created in connection with the Work Authorization(s) which are made part of this agreement (“Contractor’s Works”) throughout the world together with any and all goodwill, which is symbolized by the Contractor’s Works. The Contractor’s Works and corresponding goodwill shall be the sole and exclusive property of Cal-IPC whether or not subject to patent, copyright, trademark or trade secret protection. Contractor further agrees to assign to the Cal-IPC any and all rights to any and all updates, amendments or derivative works developed or that may be developed from the Contractor’s Works.

15. Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the State of California without regard to the conflict of law rules. Contractor also hereby irrevocably submits to the jurisdiction of the courts of Alameda County, California, for any suits or proceedings arising out of or relating to this Agreement. Any disputes arising from or related to this Agreement shall be submitted to arbitration in accordance with the then prevailing rules of the American Arbitration Association (i) before an arbitrator agreed upon by the parties or (ii) if the parties cannot agree upon an arbitrator within thirty (30) days, before three arbitrators selected pursuant to the rules of the American Arbitration Association. The site of the arbitration shall be Oakland, Alameda County, California. The arbitrator(s) may award attorneys' fees and costs as part of the award. The award of the arbitrator shall be binding and may be entered as a judgment in any court of competent jurisdiction.

16. Notices. Any notice required or desired to be given pursuant to this Agreement shall be in writing and shall be deemed given when deposited, postage paid, in the United States certified mail, return receipt requested, at the addresses set forth below, or at such subsequent address provided by the parties:

a. If to Cal-IPC: California Invasive Plant Council (“Cal-IPC”) 1442-A Walnut Street, #462, Berkeley CA 94709 Attn: Doug Johnson, Executive Director Phone: (510) 843-3902 x302, Fax: (510) 217-3500 Email: [email protected]

b. If to Contractor: San Mateo County Mosquito & Vector Control District

1351 Rollins Road, Burlingame CA 94010 Attn: Brian Weber, Assistant Manager Phone: (650) 344-8592 x278 Email: [email protected]

17. Entire Agreement. In addition to this Agreement and all Work Authorizations with attachments agreed to by the parties, Contractor agrees to be bound by the terms and conditions of Funder’s insurance requirement, attached as Exhibit A, and Cal-IPC’s Agreement 19-001 with Funder, attached as Exhibit B, both incorporated by reference into this Agreement. These documents set forth the entire agreement between the parties regarding the services and supersedes all prior oral and written understandings and agreements; no other representations or agreements shall be effective unless in writing containing a specific reference to this Agreement and signed by Cal-IPC and Contractor’s representatives.

18. No Authority to Bind. It is expressly understood and agreed that Contractor shall have no right or authority at any time to make any contract or binding promise of any nature on behalf of the Cal-IPC, whether oral or written, without the express written consent of Cal-IPC.

19. Severability. If any provision of this Agreement shall be held or made invalid by a court decision, statute, rule, or otherwise, the remainder of this Agreement shall not be affected thereby and shall remain in full force and effect as if the invalidated provision had not been included herein.

AGREED FOR CALIFORNIA INVASIVE PLANT AGREED FOR SAN MATEO COUNTY COUNCIL MOSQUITO & VECTOR CONTROL DISTRICT

By: ______By: ______Name: Doug Johnson Name: ______Title: Executive Director Title: ______Date: ______Date: ______

Master Agreement for Contracting Services- EXHIBIT A – Insurance Requirement

Throughout the term of this Agreement, Contractor shall procure and maintain insurance, as specified in this section, against claims for injuries to persons, damage to property, or professional negligence that may arise from or in connection with any activities by the Contractor’s agents, representatives, employees, or volunteers associated with the project undertaken pursuant to this agreement.

1. Minimum Scope of Insurance. Coverage shall be at least as broad as: a. Insurance Services Office (“ISO”) Commercial General Liability coverage, occurrence basis (Form CG 00 01) or comparable. b. Errors and Omissions Liability insurance as standard to the contractor’s professional field. c. Automobile Liability coverage - ISO Form Number CA 0001, Code 1 (any auto). d. Workers’ Compensation insurance as required by the Labor Code of the State of California, and Employer’s Liability insurance. e. Watercraft Liability: If the project will utilize private watercraft, endorsement to Commercial General Liability policy or Protection and Indemnity Insurance. Such insurance shall cover liability arising out of the maintenance and use of any watercraft covering owned, hired and non-owned vessels. 2. Minimum Limits of Insurance. Contractor shall maintain coverage limits no less than: a. General Liability: (Including operations, products and completed operations, as applicable): $2,000,000 per occurrence for bodily injury, personal injury and property damage. If Commercial General Liability Insurance or other form with a general aggregate limit is used, either the general aggregate limit shall apply separately to the activities under this agreement or the general aggregate limit shall be twice the required occurrence limit. b. Errors and Omissions: Commensurate with standards in the contractor’s professional field and the nature of the work. c. Automobile Liability: $1,000,000 per accident for bodily injury and property damage. d. Worker’s Compensation: As required by law with Employer’s Liability of no less than $1,000,000 e. Watercraft Liability (for private vessel) coverage, if required under 1.d., above, in the following amounts: (i) Vessels under 30 ft.: $1,000,000 combined single limit. (ii) Vessels over 30 ft. or vessel involved in research: $2,000,000 combined single limit.

3. Deductibles and Self-Insured Retentions. Any deductibles or self-insured retentions must be declared to and approved by Cal-IPC and the funder of this Master Agreement, the San Francisco Bay Restoration Authority (“Funder”). 4. Required Provisions Concerning the Funder. a. Each insurance policy required by this section shall be endorsed to state that coverage shall not be canceled by Contractor except after thirty days’ prior written notice by first class mail has been given to Cal-IPC and the Funder; or in the event of cancellation of coverage due to nonpayment, after ten days prior written notice to Cal-IPC and the Funder. The Contractor shall notify Cal-IPC and the Funder within two days of receipt of notice that any required insurance policy will lapse or be cancelled. At least ten days before an insurance policy held by the Contractor lapses or is cancelled, the Contractor shall provide Cal-IPC and the Funder with evidence of renewal or replacement of the policy. b. The Contractor hereby grants to the San Francisco Bay Restoration Authority, its officers, agents, employees, and volunteers, a waiver of any right to subrogation which any insurer of the contractor may acquire against the San Francisco Bay Restoration Authority, its officers, agents, employees, and volunteers, by virtue of the payment of any loss under such insurance. Contractor agrees to obtain any endorsement that may be necessary to affect this waiver of subrogation, but this provision applies regardless of whether or not the Contractor has received a waiver of subrogation endorsement from the insurer. c. The general liability and automobile liability policies are to contain, or to be endorsed to contain, the following provisions. (i) The San Francisco Bay Restoration Authority, its officers, agents and employees are to be covered as additional insureds with respect to liability arising out of automobiles owned, leased, hired or borrowed by or on behalf of the contractor; and with respect to liability arising out of work or operations, including completed operations, performed by or on behalf of the contractor including materials, parts or equipment furnished in connection with such work or operations. (ii) Cal-IPC, its officers, agents and employees are to be covered as additional insureds with respect to liability arising out of automobiles owned, leased, hired or borrowed by or on behalf of the contractor; and with respect to liability arising out of work or operations, including completed operations, performed by or on behalf of the contractor including materials, parts or equipment furnished in connection with such work or operations. (iii) For any claims related to this agreement, the Contractor’s insurance coverage shall be primary insurance with respect to Cal-IPC and the San Francisco Bay Restoration Authority, their officers, agents and employees, and not excess to any insurance or self-insurance of Cal-IPC or the San Francisco Bay Restoration Authority.

(iv) The limits of the additional insured coverage shall equal the limits of the named insured coverage regardless of whether the limits of the named insurance coverage exceed those limits required by this agreement. d. Coverage shall not extend to any indemnity coverage for the active negligence of the additional insured in any case where an agreement to indemnify the additional insured would be invalid under Subdivision (b) of Section 2782 of the Civil Code. 5. Acceptability of Insurers. Insurance shall be placed with insurers admitted to transact business in the State of California and having a current Best’s rating of “B+:VII” or better or, in the alternative, acceptable to Cal-IPC and the Funder and approved in writing by the Funder’s Executive Officer. 6. Verification of Coverage. The Contractor shall furnish Cal-IPC and the Funder with original certificates and amendatory endorsements effecting coverage required by this clause. All certificates and endorsements are to be received and approved by the Executive Officer before work commences. The San Francisco Bay Restoration Authority reserves the right to require complete, certified copies of all required insurance policies, including endorsements affecting the coverage, at any time. 7. Sub-Contractors. In the event of subcontractor approval in accordance with Paragraph 5.2 of the Master Agreement for Contracting Services, the Contractor shall include all subcontractors as insureds under its policies or shall require each subcontractor to provide and maintain coverage consistent with the requirements of this section. To the extent generally available, Contractor shall also require each professional subcontractor to provide and maintain errors and omissions liability insurance appropriate to the sub-contractor’s profession and in a reasonable amount in light of the nature of the project.

DocuSign Envelope ID: 3B7E4488-DCB4-415B-A3C8-967FF9265E05

AGREEMENT NUMBER AM. NO. SFB0025-RA020 TAXPAYERS FEDERAL EMPLOYER IDENTIFICATION NO. 68-0289333

STANDARD AGREEMENT (RA 3/2018)

7th day of January THIS AGREEMENT, made and entered into this ______day of ______, 2021 in the State of California, by and between the San Francisco Bay Restoration Authority, a regional public entity, through its duly appointed

TITLE OF OFFICER ACTING FOR PUBLIC ENTITY PUBLIC ENTITY Executive Officer San Francisco Bay Restoration Authority , hereafter called the Authority, and GRANTEE'S NAME California Invasive Plant Council , hereafter called the Grantee.

The Grantee and the Authority hereby agree as follows:

SCOPE OF AGREEMENT

Pursuant to the San Francisco Bay Restoration Authority Act, California Government Code 66700-66706, the San Francisco Bay Restoration Authority (“the Authority”) hereby grants to the California Invasive Plant Council (“the grantee”) a sum not to exceed $4,000,000 (four million dollars), subject to this agreement. The grantee shall use these funds to implement the Invasive Spartina Removal and Tidal Marsh Restoration project (“the project”) over the 70,000 acre areas of intertidal wetland and mudflat habitat throughout the nine county San Francisco Bay Area, as shown on Exhibit A: Project Area Map, which is incorporated by reference and attached.

(Continued on following pages)

The provisions on the following pages constitute a part of this agreement. IN WITNESS WHEREOF, this agreement has been executed by the parties hereto, upon the date first above written. GRANTOR GRANTEE AGENCY GRANTEE (If other than an individual, state whether a corporation, partnership, etc.) San Francisco Bay Restoration Authority California Invasive Plant Council BY (Authorized Signature) BY (Authorized Signature)   PRINTED NAME AND TITLE OF PERSON SIGNING PRINTED NAME AND TITLE OF PERSON SIGNING Samuel Schuchat, Executive Officer Doug Johnson, Executive Director ADDRESS & PHONE NUMBER ADDRESS 1515 Clay Street, 10th Floor 1442-A Walnut Street #462 Oakland, CA 94612 Berkeley, CA 94709 Phone: (510) 286-1015 Phone: (510) 843-1255 ext.302

AMOUNT ENCUMBERED BY THIS DOCUMENT PROGRAM/CATEGORY (CODE AND TITLE) . $4,000,000.00 Measure AA PRIOR AMOUNT ENCUMBERED FOR THIS AGREEMENT WORK ITEM NUMBER $-0- 441-1779-19-5850 TOTAL AMOUNT ENCUMBERED TO DATE PROJECT NAME San Francisco Estuary Invasive Spartina Removal and Tidal Marsh $4,000,000.00 Restoration Project

I hereby certify upon my own personal knowledge that budgeted funds are available for the period and purpose of the expenditure stated above. PRINTED NAME AND TITLE OF PERSON SIGNING SIGNATURE DATE Raymond Woo 1/19/2021 Budget Manager  GRANTEE ACCOUNTING PROJECT MANAGER AGREEMENT FILE DocuSign Envelope ID: 3B7E4488-DCB4-415B-A3C8-967FF9265E05

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This project will implement the Invasive Spartina Project from November 2020 through October 2022 to advance the eradication of invasive Spartina and to implement native tidal marsh plantings and enhancements. The project includes invasive Spartina monitoring and treatment, native marsh plant revegetation, California Ridgway’s rail monitoring, and community outreach and job training. The project’s revegetation program will propagate and outplant 36,000 native marsh plants such as Pacific cordgrass (Spartina foliosa) and marsh gumplant (Grindelia stricta) and plant them at restoration sites in the bay. The project activities will restore the natural ecological functions of tidal marsh habitat and improve habitat values for fish and wildlife.

The grantee shall carry out the project in accordance with this agreement and a work program as provided in the “WORK PROGRAM” section, below. The grantee shall provide any funds beyond those granted under this agreement which are needed to complete the project.

CONDITIONS PRECEDENT TO COMMENCEMENT OF PROJECT AND DISBURSEMENT

The grantee shall not begin work on the project and the Authority shall not be obligated to disburse any funds unless and until the following conditions precedent have been met:

1. The Board of Directors of the grantee has adopted a resolution designating positions whose incumbents are authorized to negotiate and execute this agreement and amendments to it on behalf of the grantee.

2. The Executive Officer of the Authority (“the Executive Officer”) has approved in writing:

a. A work program for the project, as provided in the “WORK PROGRAM” section, below.

b. A plan for acknowledgment of Authority support, as provided in the “SIGNS AND ACKNOWLEDGMENT” section, below.

c. All contractors that the grantee intends to retain in connection with the project.

3. The grantee has provided written evidence to the Authority that:

a. All permits and approvals necessary to the completion of the project under applicable local, state and federal laws and regulations have been obtained.

b. The grantee has provided for required insurance coverage, including additional insured endorsement, as described in the “INSURANCE” section, below.

4. The Grantee shall adequately document all efforts to obtain annual appropriate permissions to all lands on which Project work will be undertaken. On request of the Authority, Grantee DocuSign Envelope ID: 3B7E4488-DCB4-415B-A3C8-967FF9265E05

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shall provide such documentation as to any specific Project work or Project site or sites, during the term of this Agreement. Grantee is solely responsible for securing appropriate Landowner access to perform the Project. The Authority undertakes no responsibility for any claim or suit of any nature by any Landowner or third party related in any way to accessing any portion of the Project Property and Grantee shall indemnify, protect and hold harmless the Authority and its representatives for any claim or loss arising out of or incident to Grantee’s entry upon the Project Property.

ADDITIONAL GRANT CONDITIONS

The grantee shall also meet the following conditions:

1. The Publication of Project Information. The grantee shall upload project information, including periodic monitoring data, to the project tracker for “EcoAtlas”, an online database and web-based viewer of stream and wetland maps, restoration information, and monitoring results (currently available at http://ptrack.ecoatlas.org/), to track project information and aggregate data.

2. Using the Lessons Learned Report form provided by the Authority and in accordance with the deadline set forth in the PROJECT COMPLETION section, below, the grantee shall submit a report describing whether the project met the project goals and information learned from project implementation that could help others more effectively implement similar projects.

3. In carrying out any treatment or enhancement project, the grantee shall comply with all applicable mitigation and monitoring measures that are set forth in the approved site-specific plans, that are required by any permit, the applicable U.S. Fish and Wildlife Service Biological Opinion or any other approval for the project, and that are identified in the “Final Programmatic Environmental Impact Statement/Environmental Impact Report, San Francisco Estuary Invasive Spartina Project: Spartina Control Program” (EIS/R), adopted by the Conservancy on September 25, 2003.

TERM OF AGREEMENT

This agreement shall take effect when signed by both parties and received in the offices of the Authority together with the resolution described in the “CONDITIONS PRECEDENT TO COMMENCEMENT OF PROJECT AND DISBURSEMENT” section of this agreement. This agreement may be signed using an electronic process specified by the Authority.

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This agreement shall run from its effective date through January 31, 2024 (“the termination date”) unless otherwise terminated or amended as provided in this agreement.

However, all work shall be completed by January 31, 2023 (“the completion date”). The grantee shall submit a final Request for Disbursement no later than April 30, 2023.

AUTHORIZATION

The signature of the Executive Officer of the Authority on this agreement certifies that at its October 2, 2020 meeting, the Authority adopted the resolution included in the staff recommendation attached as Exhibit B: Staff Recommendation. This agreement is executed under that authorization. DocuSign Envelope ID: 3B7E4488-DCB4-415B-A3C8-967FF9265E05

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Standard Provisions

WORK PROGRAM

Before beginning work, the grantee shall submit a detailed work program to the Executive Officer for review and written approval of its consistency with the purposes of this grant agreement. The work program shall include:

1. The specific tasks to be performed.

2. A schedule of completion for the project specifically listing the completion date for each project component and a final project completion date.

3. A detailed project budget. The project budget shall describe all labor and materials costs of completing each component of the project, including the grantee’s labor and materials costs and costs to be incurred under a contract with any third party retained by the grantee for work under this agreement. For each project component, the project budget shall list all intended funding sources, including the Authority’s grant, and all other sources of monies, materials, or labor.

If all or any part of the project to be funded under this agreement will be performed by third parties (“contractors”) under contract with the grantee, then the grantee shall, prior to initiating any contractor selection process, submit the selection package, including any applicable construction plans and specifications that have been certified or approved as described above, to the Executive Officer for review and written approval as to consistency with the purposes of this grant agreement. Upon approval by the Executive Officer, the grantee shall proceed with the contractor selection process. Prior to final selection of a contractor, the grantee shall submit to the Executive Officer for written approval the names of all contractors that the grantee intends to hire. The grantee shall then comply with the above paragraph regarding submission and approval of a work program prior to construction.

The work program shall have the same effect as if included in the text of this agreement. However, the work program may be modified without amendment of this agreement upon the grantee’s submission of a modified work program and the Executive Officer’s written approval of it. If this agreement and the work program are inconsistent, the agreement shall control.

The grantee shall construct the project in accordance with the approved work program.

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COORDINATION AND MEETINGS

The grantee shall coordinate closely with Authority staff and other involved entities, including local, state and federal agencies, and shall participate in meetings and other communications as necessary to ensure coordination.

WORK PRODUCTS AND ACKNOWLEDGMENT OF AUTHORITY SUPPORT

All material, data, information, and written, graphic or other work produced, developed or acquired under this agreement is subject to the unqualified and unconditional right of the Authority to use, reproduce, publish, display, and make derivative use of all such work, or any part of it, free of charge and in any manner and for any purpose; and to authorize others to do so. If any of the work is subject to copyright, trademark, service mark, or patent, the Authority is granted and shall have a perpetual, royalty-free, nonexclusive and irrevocable license to use, reproduce, publish, use in the creation of derivative works, and display and perform the work, or any part of it, and to grant to any third party a comparable and coextensive sublicense.

The grantee shall include in any contract with a third party for work under this agreement terms that preserve the rights, interests, and obligations created by this section, and that identify the Authority as a third-party beneficiary of those provisions.

The grantee shall not utilize the work produced under this agreement for any profit-making venture, or sell or grant rights to a third party for that purpose.

To acknowledge the Authority’s support of the project, the Authority’s name and logo shall be included in the final report in a prominent location. The grantee shall mention the Authority’s support in its project-related press releases, contacts with the media, and social media postings, and on its website. The grantee shall submit a plan for compliance with this paragraph to the Executive Officer for review and approval, and the grantee shall comply with the approved plan.

COSTS AND DISBURSEMENTS

When the Authority determines that all “CONDITIONS PRECEDENT TO COMMENCEMENT OF PROJECT AND DISBURSEMENT” have been fully met, the Authority shall disburse to the grantee, in accordance with the approved project budget, a total amount not to exceed the amount of this grant, as follows:

The withholding for this agreement is five percent for the tasks implemented by subcontractor Olofson Environmental Inc, and otherwise there will be no withholding for the grantee and their other subcontractors. The Authority shall disburse funds for costs incurred to date, less five percent for Olofson Environmental, Inc work, upon the grantee’s satisfactory progress under the DocuSign Envelope ID: 3B7E4488-DCB4-415B-A3C8-967FF9265E05

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approved work program and upon submission of a “Request for Disbursement” form, which shall be submitted no more frequently than monthly but no less frequently than quarterly. The Authority’s fiscal year ends on June 30. For all costs the grantee incurs through the end of the Authority’s fiscal year, Requests for Disbursement shall be submitted by July 20th. Every six months, upon the satisfactory completion of work by subcontractor Olofson Environmental Inc., the Authority may disburse the funds withheld for that time period, provided that the grantee has complied with the “PROJECT COMPLETION AND SEMINANNUAL WORK DOCUMENTATION” section, below, with respect to that work. The Authority shall disburse amounts earlier withheld and not subsequently disbursed upon the grantee’s satisfactory completion of the project and compliance with the “PROJECT COMPLETION AND SEMIANNUAL WORK DOCUMENTATION” section, below, and upon the Authority’s acceptance of the project.

The Authority will reimburse the grantee for expenses necessary to the project when documented by appropriate receipts. The Authority will reimburse travel and related expenses at actual costs not to exceed the rates provided in Title 2, Division 1, Chapter 3, Subchapter 1, Article 2 of the California Code of Regulations (“CCR”), except that reimbursement may be in excess of these rates upon documentation that these rates are not reasonably available to the grantee. Reimbursement for the cost of operating a private vehicle shall not, under any circumstance, exceed the current rate specified by the State of California for unrepresented state employees as of the date the cost is incurred. The Authority will reimburse the grantee for other necessary expenses if those expenses are reasonable in nature and amount taking into account the nature of the project, its location, and other relevant factors.

The grantee shall request disbursements by filing with the Authority a fully executed “Request for Disbursement” form (available from the Authority). The grantee shall include in the form its name and address, the number of this agreement, the date of the submission, the amount of the invoice, the period during which the work was actually done, and an itemized description, including time, materials, and expenses incurred of all work done for which disbursement is requested. Hourly rates billed to the Authority, and specified in the approved work program budget shall be equal to the actual compensation paid by grantee to employees, which may include employee benefits. The form shall also indicate cumulative expenditures to date, expenditures during the reporting period, and the unexpended balance of funds under the grant agreement.

An authorized representative of the grantee shall sign the forms. Each form shall be accompanied by:

1. All receipts and any other source documents for direct expenditures and costs that the grantee has incurred.

2. Invoices from contractors that the grantee engaged to complete any portion of the work funded under this agreement and any receipts and any other source documents for costs DocuSign Envelope ID: 3B7E4488-DCB4-415B-A3C8-967FF9265E05

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incurred and expenditures by any such contractor, unless the Executive Officer makes a specific exemption in writing.

3. A supporting progress report summarizing the current status of the project and comparing it to the status required by the work program (budget, timeline, tasks, etc.) including written substantiation of completion of the portion of the project for which the grantee is requesting disbursement.

The grantee’s failure to fully execute and submit a Request for Disbursement form, including attachment of supporting documents, will relieve the Authority of its obligation to disburse funds to the grantee until the grantee corrects all deficiencies.

EXPENDITURE OF FUNDS AND ALLOCATION OF FUNDING AMONG BUDGET ITEMS

The total amount of this grant may not be increased except by written amendment to this agreement. The grantee shall expend funds consistent with the approved project budget. Expenditure on items contained in the approved project budget, other than overhead and indirect costs, may vary by as much as ten percent without prior approval by the Executive Officer, provided that the grantee first submits a revised budget to the Authority and requests disbursement based on the revised budget. Any deviation greater than ten percent, and any deviation that shifts funds from approved budget items into an overhead or indirect costs category, must be identified in a revised budget approved in advance and in writing by the Executive Officer. The Authority may withhold payment for items that exceed the amount allocated in the project budget by more than ten percent and which have not received the approval required above. Any increase in the funding for any particular budget item shall mean a decrease in the funding for one or more other budget items unless there is a written amendment to this agreement.

PROJECT COMPLETION AND SEMIANNUAL WORK DOCUMENTATION

Every six months, the grantee may supply the Authority with evidence of satisfactory completion of work by subcontractor Olofson Environmental, Inc. This submittal shall include:

1. Documentation of work completed.

2. Any work products specified to be completed in that time period in the approved work program.

3. A fully executed “Request for Disbursement” form for the work.

Within thirty days of grantee’s compliance with this paragraph, the Authority shall determine whether the work has been satisfactorily completed. If the Authority determines that the work DocuSign Envelope ID: 3B7E4488-DCB4-415B-A3C8-967FF9265E05

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has been satisfactorily complete, the Authority shall issue to the grantee a letter of acceptance of the work.

Within thirty days of completion of implementation of the project, the grantee shall supply the Authority with evidence of completion by submitting a final report which includes:

1. Annual plans and any other work products specified in the work program for the project, each in a format or formats (for example, paper, digital, photographic) approved by the Executive Officer.

2. Documentation that credit is given as required by the “WORK PRODUCTS AND ACKNOWLEDGMENT OF AUTHORITY SUPPORT” section of this agreement.

3. A fully executed final “Request for Disbursement.”

4. The Lessons Learned Report.

Within thirty days of grantee’s submission of the above, the Authority shall determine whether the grantee has satisfactorily completed the project. If so, the Authority shall issue to the grantee a letter of acceptance of the project. The project shall be deemed complete as of the date of the letter.

EARLY TERMINATION, SUSPENSION AND FAILURE TO PERFORM

Before the project has commenced, either party may terminate this agreement for any reason by providing the other party with seven days notice in writing.

Before the project is complete, the Authority may terminate or suspend this agreement for any reason by providing the grantee with seven days notice in writing. In either case, the grantee shall immediately stop work under the agreement and take all reasonable measures to prevent further costs to the Authority. The Authority shall be responsible for any reasonable and non-cancelable obligations incurred by the grantee in the performance of this agreement prior to the date of the notice to terminate or suspend, but only up to the undisbursed balance of funding authorized in this agreement. Any notice suspending work under this agreement shall remain in effect until further written notice from the Authority authorizes work to resume.

Before the project is complete, the grantee may terminate this agreement for any reason by providing the Authority with seven days notice in writing and repaying to the Authority all amounts disbursed by the Authority under this agreement. The Authority may, at its sole discretion, consider extenuating circumstances and allow early termination without repayment for work partially completed. DocuSign Envelope ID: 3B7E4488-DCB4-415B-A3C8-967FF9265E05

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The parties expressly agree to waive, release and relinquish the recovery of any consequential damages that may arise out of the termination or suspension of this agreement under this section.

If the grantee fails to complete the project as required, or fails to fulfill any other obligations of this agreement, the grantee shall be liable for immediate repayment to the Authority of all amounts disbursed by the Authority under this agreement. The Authority may, at its sole discretion, consider extenuating circumstances and not require repayment for work partially completed. This paragraph shall not be deemed to limit any other remedies the Authority may have for breach of this agreement.

The grantee shall include in any agreement with any contractor retained for work under this agreement a provision that entitles the grantee to suspend or terminate the agreement with the contractor for any reason on written notice and on the same terms and conditions specified in this section.

MITIGATION

Without the written permission of the Executive Officer, the grantee shall not use or allow the use for mitigation (in other words, to compensate for adverse changes to the environment elsewhere) of the project or any portion of the project. In providing permission, the Executive Officer may require that all funds generated in connection with any authorized or allowable mitigation on the real property shall be remitted promptly to the Authority. As used in this section, mitigation includes, but is not limited to, any use of the property in connection with the sale, trade, transfer or other transaction involving carbon sequestration credit or carbon mitigation.

INSPECTION

Throughout the term of this agreement, the Authority shall have the right to inspect the project area to ascertain compliance with this agreement.

INDEMNIFICATION AND HOLD HARMLESS

The grantee shall be responsible for, indemnify and hold harmless the Authority, its officers, agents, and employees from any and all liabilities, claims, demands, damages, or costs, including, without limitation, litigation costs and attorneys fees, resulting from or arising out of the willful or negligent acts or omissions of the grantee, its officers, agents, contractors, subcontractors, and employees, or in any way connected with or incident to this agreement, except for the active negligence of the Authority, its officers, agents, or employees. The duty of DocuSign Envelope ID: 3B7E4488-DCB4-415B-A3C8-967FF9265E05

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the grantee to indemnify and hold harmless includes the duty to defend as provided in Civil Code section 2778.

The grantee waives any and all rights to any type of express or implied indemnity or right of contribution from the Authority, its officers, agents, or employees, for any liability resulting from, growing out of, or in any way connected with or incident to this agreement.

Nothing in this agreement is intended to create in the public or in any member of it rights as a third-party beneficiary under this agreement.

The obligations in this “INDEMNIFICATION AND HOLD HARMLESS” section shall survive termination of this agreement.

INSURANCE

The grantee shall procure and maintain insurance, as specified in this section, against claims for injuries to persons and damage to property that may arise from or in connection with any activities of the grantee or its agents, representatives, employees, volunteers, or contractors associated with the project undertaken pursuant to this agreement.

As an alternative, with the written approval of the Executive Officer, the grantee may satisfy the coverage requirement in whole or in part through: (a) its contractors’ procurement and maintenance of insurance for work under this agreement, if the coverage otherwise fully satisfies the requirements of this section; or (b) the grantee’s participation in a “risk management” plan, self insurance program or insurance pooling arrangement, or any combination of these, if consistent with the coverage required by this section.

The grantee shall maintain property insurance, if required below, throughout the term of this agreement. The grantee shall maintain all required insurance from the effective date through the completion date.

1. Minimum Scope of Insurance. Coverage shall be at least as broad as:

a. Insurance Services Office (“ISO”) Commercial General Liability coverage, occurrence basis (Form CG 00 01) or comparable.

b. Automobile Liability coverage: ISO Form Number CA 0001, Code 1 (any auto).

c. Workers’ Compensation insurance as required by the Labor Code of the State of California.

2. Minimum Limits of Insurance. The grantee shall maintain coverage limits no less than: DocuSign Envelope ID: 3B7E4488-DCB4-415B-A3C8-967FF9265E05

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a. General Liability: $2,000,000 per occurrence for bodily injury, (Including operations, products and personal injury and property damage. If completed operations, as applicable) Commercial General Liability Insurance or other form with a general aggregate limit is used, either the general aggregate limit shall apply separately to the activities under this agreement, or the general aggregate limit shall be twice the required occurrence limit.

b. Automobile Liability: $1,000,000 per accident for bodily injury and property damage.

3. Deductibles and Self-Insured Retentions. Any deductibles or self-insured retentions must be declared to and approved by the Executive Officer.

4. Required Provisions Concerning the Authority.

a. Each insurance policy required by this section shall be endorsed to state that coverage shall not be canceled by either party, except after thirty days’ prior written notice by first class mail has been given to the Authority; or in the event of cancellation of coverage due to nonpayment, after ten days prior written notice to the Authority. The grantee shall notify the Authority within two days of receipt of notice that any required insurance policy will lapse or be cancelled. At least ten days before an insurance policy held by the grantee lapses or is cancelled, the grantee shall provide the Authority with evidence of renewal or replacement of the policy.

b. The grantee hereby grants to the Authority, its officers, agents, employees, and volunteers, a waiver of any right to subrogation which any insurer of the grantee may acquire against the Authority, its officers, agents, employees, and volunteers, by virtue of the payment of any loss under such insurance. Grantee agrees to obtain any endorsement that may be necessary to effect this waiver of subrogation, but this provision applies regardless of whether or not the grantee has received a waiver of subrogation endorsement from the insurer.

c. The general liability and automobile liability policies are to contain, or be endorsed to contain, the following provisions:

(i) The Authority, its officers, agents, employees, and volunteers are to be covered as additional insureds with respect to liability arising out of automobiles owned, leased, hired or borrowed by or on behalf of the grantee; and with respect to liability arising out of work or operations, including completed operations, performed by or on behalf of the grantee including materials, parts or equipment furnished in connection with the work or operations. DocuSign Envelope ID: 3B7E4488-DCB4-415B-A3C8-967FF9265E05

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(ii) For any claims related to this agreement, the grantee’s insurance coverage shall be primary insurance as respects the Authority, its officers, agents and employees, and not excess to any insurance or self-insurance of the Authority.

(iii)The limits of the additional insured coverage shall equal the limits of the named insured coverage regardless of whether the limits of the named insurance coverage exceed those limits required by this agreement.

5. Acceptability of Insurers. Insurance shall be placed with insurers admitted to transact business in the State of California and having a current Best’s rating of “B+:VII” or better or, in the alternative, acceptable to the Authority and approved in writing by the Executive Officer.

6. Verification of Coverage. The grantee shall furnish the Authority with original certificates and amendatory endorsements, or copies of the applicable policy language, effecting coverage required by this clause. All certificates and endorsements are to be received and approved by the Executive Officer before work commences. The Authority may require, at any time, complete, certified copies of all required insurance policies, including endorsements affecting the coverage.

7. Contractors. The grantee shall include all contractors as insureds under its policies or shall require each contractor to provide and maintain coverage consistent with the requirements of this section. To the extent generally available, grantee shall also require each professional contractor to provide and maintain Errors and Omissions Liability insurance appropriate to the contractor’s profession and in a reasonable amount in light of the nature of the project.

8. Premiums and Assessments. The Authority is not responsible for premiums and assessments on any insurance policy.

AUDITS/ACCOUNTING/RECORDS

The grantee shall maintain financial accounts, documents, and records (collectively, “records”) relating to this agreement, in accordance with the guidelines of “Generally Accepted Accounting Principles” (“GAAP”) published by the American Institute of Certified Public Accountants. The records shall include, without limitation, evidence sufficient to reflect properly the amount, receipt, deposit, and disbursement of all funds related to the implementation of the project. Time and effort reports are also required. The grantee shall maintain adequate supporting records in a manner that permits tracing from the request for disbursement forms to the accounting records and to the supporting documentation.

Additionally, the Authority or its agents may review, obtain, and copy all records relating to performance of the agreement. The grantee shall provide the Authority or its agents with any DocuSign Envelope ID: 3B7E4488-DCB4-415B-A3C8-967FF9265E05

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relevant information requested and shall permit the Authority or its agents access to the grantee’s premises upon reasonable notice, during normal business hours, to interview employees and inspect and copy books, records, accounts, and other material that may be relevant to a matter under investigation for the purpose of determining compliance with this agreement and any applicable laws and regulations.

The grantee shall retain the required records for a minimum of three years following the later of final disbursement by the Authority, and the final year to which the particular records pertain. The records shall be subject to examination and audit by the Authority and the Bureau of State Audits during the retention periods.

If the grantee retains any contractors to accomplish any of the work of this agreement, the grantee shall first enter into an agreement with each contractor requiring the contractor to meet the terms of this section and to make the terms applicable to all subcontractors.

The Authority may disallow all or part of the cost of any activity or action that it determines to be not in compliance with the requirements of this agreement.

COMPUTER SOFTWARE

The grantee certifies that it has instituted and will employ systems and controls appropriate to ensure that, in the performance of this agreement, Authority funds will not be used for the acquisition, operation or maintenance of computer software in violation of copyright laws.

NONDISCRIMINATION

During the performance of this agreement, the grantee and its contractors shall not deny the agreement’s benefits to any person on the basis of race, religious creed, color, national origin, ancestry, physical disability, mental disability, medical condition, genetic information, marital status, sex, gender, gender identity, gender expression, age, sexual orientation, or military and veteran status, nor shall they discriminate unlawfully against any employee or applicant for employment because of race, religious creed, color, national origin, ancestry, physical disability, mental disability, medical condition, genetic information, marital status, sex, gender, gender identity, gender expression, age, sexual orientation, or military and veteran status. The grantee shall insure that the evaluation and treatment of employees and applicants for employment are free of such discrimination. The grantee and contractors shall comply with the provisions of the Fair Employment and Housing Act (Gov. Code §12900 et seq.), the regulations promulgated thereunder (Cal. Code Regs., tit. 2, §11000 et seq.), the provisions of Article 9.5, Chapter 1, Part 1, Division 3, Title 2 of the Government Code (Gov. Code §§11135-11139.5), and the regulations or standards adopted by the Authority to implement such article. The grantee shall permit access by representatives of the Department of Fair Employment and Housing and the DocuSign Envelope ID: 3B7E4488-DCB4-415B-A3C8-967FF9265E05

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Authority upon reasonable notice at any time during the normal business hours, but in no case less than 24 hours’ notice, to such of its books, records, accounts, and all other sources of information and its facilities as said Department or the Authority shall require to ascertain compliance with this clause. The grantee and its contractors shall give written notice of their obligations under this clause to labor organizations with which they have a collective bargaining or other agreement. (See Cal. Code Regs., tit. 2, §11105.)

The grantee shall include the nondiscrimination and compliance provisions of this clause in all contracts to perform work under this agreement.

PREVAILING WAGE

Work done under this grant agreement may be subject to the prevailing wage and other related requirements of the California Labor Code, Division 2, Part 7, Chapter 1, sections 1720-1861. If required by law to do so, the grantee shall pay prevailing wage to all persons employed in the performance of any part of the project and otherwise comply with all associated requirements and obligations.

The grantee shall review applicable statutory provisions and the regulations adopted under the provisions and the information available on the Department of Industrial Relations website (http://www.dir.ca.gov/Public-Works/PublicWorks.html) to determine its responsibilities. For additional information, the grantee may also review the State Coastal Conservancy’s publication, Information on Current Status of Prevailing Wage Laws for State Coastal Conservancy Grantees (March 2015), available from the Authority on request.

INDEPENDENT CAPACITY

The grantee, and the agents and employees of grantee, in the performance of this agreement, shall act in an independent capacity and not as officers or employees or agents of the Authority.

ASSIGNMENT

Without the written consent of the Executive Officer, the grantee may not assign this agreement in whole or in part.

TIMELINESS

Time is of the essence in this agreement.

DocuSign Envelope ID: 3B7E4488-DCB4-415B-A3C8-967FF9265E05

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EXECUTIVE OFFICER’S DESIGNEE

The Executive Officer shall designate an Authority project manager who shall have authority to act on behalf of the Executive Officer with respect to this agreement. The Executive Officer shall notify the grantee of the designation in writing.

AMENDMENT

Except as expressly provided in this agreement, no changes in this agreement shall be valid unless made in writing and signed by the parties to the agreement. No oral understanding or agreement not incorporated in this agreement shall be binding on any of the parties.

LOCUS

This agreement is deemed to be entered into in the County of Alameda.

SURVIVAL

The obligations in the “INDEMNIFICATION AND HOLD HARMLESS” section, above, shall survive the termination of this agreement.

DocuSign Envelope ID: 3B7E4488-DCB4-415B-A3C8-967FF9265E05 Exhibit A

Exhibit A: Project Area Map

Map 1. Regional map showing the project area of the Invasive Spartina Project with regional boundaries delimited to facilitate project reporting.

DocuSign Envelope ID: 3B7E4488-DCB4-415B-A3C8-967FF9265E05 Exhibit B

SAN FRANCISCO BAY RESTORATION AUTHORITY

Staff Recommendation October 2, 2020 INVASIVE SPARTINA REMOVAL AND TIDAL MARSH RESTORATION PROJECT

Project No. RA-020 Project Manager: Marilyn Latta

RECOMMENDED ACTION: Authorization to disburse up to four million dollars ($4,000,000) to the California Invasive Plant Council for the continued eradication of invasive cordgrass (invasive Spartina) and enhancement of critically important tidal marsh and mudflat habitat throughout the entire nine county San Francisco Estuary; and adoption of findings pursuant to the California Environmental Quality Act. The project includes invasive Spartina monitoring and treatment, native Spartina revegetation, California Ridgway’s rail monitoring, and community outreach and job training in partnership with the regional San Francisco Estuary Invasive Spartina Project led by the State Coastal Conservancy and US Fish and Wildlife Service.

LOCATION: Counties of Marin, Sonoma, Napa, Solano, Alameda, Contra Costa, San Mateo, Santa Clara, and San Francisco.

MEASURE AA PROGRAM CATEGORY: Vital Fish, Bird and Wildlife Habitat Program.

EXHIBITS Exhibit 1: Project Area Map Exhibit 2: San Francisco Bay Invasive Spartina Net Acres 2004-2019 Exhibit 3: Treatment and Habitat Enhancement Photos Exhibit 4: San Francisco Estuary Invasive Spartina Project: Spartina Control Program Volume 1: 2003 Final Environmental Impact Statement/Environmental Impact Report, and Volume 2: Appendices Exhibit 5: San Francisco Estuary Invasive Spartina Project: Spartina Control Program EIR/S 2005 Addendum Exhibit 6: Project Letters

RESOLUTION AND FINDINGS: Staff recommends that the San Francisco Bay Restoration Authority adopt the following resolution pursuant to The San Francisco Bay Restoration Authority Act, Gov. Code Sections 66700-66706: “The San Francisco Bay Restoration Authority hereby authorizes the disbursement of an amount not to exceed four million dollars ($4,000,000) to the California Invasive Plant Council for the continued eradication of invasive cordgrass (invasive Spartina) and enhancement of critically important tidal marsh and mudflat habitat throughout the entire nine county San Francisco Estuary. The project includes invasive Spartina monitoring and treatment, native marsh plant revegetation, California Ridgway’s rail monitoring, and community outreach and job training in partnership with the San Francisco Estuary Invasive Spartina Project led by the State Coastal DocuSign Envelope ID: 3B7E4488-DCB4-415B-A3C8-967FF9265E05 Exhibit B Conservancy and US Fish and Wildlife Service Don Edwards San Francisco Bay National Wildlife Refuge Complex.

Prior to commencement of the project, the grantee shall submit for the review and written approval of the Executive Officer of the Authority the following:

1. A detailed work program, schedule, and budget. 2. Names and qualifications of any contractors to be employed in carrying out the project. 3. A plan for acknowledgement of Authority funding. 4. Evidence that all permits and approvals required to implement the project have been obtained. 5. Evidence that the grantee has entered into agreements sufficient to enable the grantee to implement, operate, and maintain the project. ”

Staff further recommends that the Authority adopt the following findings:

“Based on the accompanying staff report and attached exhibits, the San Francisco Bay Restoration Authority hereby finds that:

1. The proposed authorization is consistent with The San Francisco Bay Restoration Authority Act, Gov. Code Sections 66700-66706. 2. The proposed authorization is consistent with The San Francisco Bay Clean Water, Pollution Prevention and Habitat Restoration Measure (Measure AA). 3. The grantee is not required to enter into a project labor agreement per Resolution 22 due to the fact that there are no unions representing aquatic herbicide application. 4. The San Francisco Bay Restoration Authority has independently reviewed and considered the “ San Francisco Estuary Invasive Spartina Project: Spartina Control Program Volume 1: 2003 Final Environmental Impact Statement/Environmental Impact Report” and “Volume 2: Appendices” (EIR) certified by the State Coastal Conservancy on September 25, 2003 and the Addendum to the EIR adopted on June 16, 2005, attached to the accompanying staff recommendation as Exhibits 4 and 5, and comments received. The EIR and Addendum identified potential significant effects in the areas of Hydrology and Geomorphology, Water Quality, Biological Resources, Air Quality, Noise, Human Health and Safety, and Visual Resources. With regards to the potentially significant impacts on Hydrology and Geomorphology, Water Quality, Air Quality, Noise, and Human Health and Safety, the Authority finds that the mitigation measures identified in the EIR and Addendum avoid, reduce or mitigate any possible significant environmental effect of the project. Effects on Biological Resources (short term effects on the salt marsh harvest mouse, tidal shrew, California Ridgway’s (previously known as clapper) rail and California black rail) and short-term impacts to Visual Resources remain significant even after incorporation of mitigation measures. 5. Statement of Overriding Considerations for the Invasive Spartina Removal and Tidal Marsh Restoration project. The implementation and operating conditions of the ISP, and therefore this project, will result in “significant and unavoidable” short-term effects on the salt marsh harvest mouse, tidal shrew, California Ridgway’s (previously known as clapper) rail and California black rail and short-term impacts to Visual Resources. Specific benefits of the project are described in the accompanying staff recommendation and are also detailed in the EIR. The Authority finds that the long-term environmental DocuSign Envelope ID: 3B7E4488-DCB4-415B-A3C8-967FF9265E05 Exhibit B benefit of restoring and protecting native habitat for endangered species and other wildlife that would be threatened with the spread of invasive Spartina outweighs the short-term adverse impacts associated with the ISP and this project. These project benefits are: 1) over the long term it is anticipated that the removal of invasive Spartina and planting of native vegetation will promote native vegetation to return to where it had previously been displaced, thus creating additional species habitat; 2) other restoration projects may move forward and add further native habitat without risk of infestation of invasive Spartina; 3) more severe long term impacts of invasive Spartina on tidal marsh species will be avoided.”

PROJECT SUMMARY: Staff recommends that the Authority disburse up to four million dollars ($4,000,000) to the California Invasive Plant Council (Cal-IPC) for the continued eradication of invasive cordgrass (invasive Spartina) and enhancement of critically important tidal marsh and mudflat habitat throughout the entire nine county San Francisco Estuary (Exhibit 1) (project). The project includes invasive Spartina monitoring and treatment, native marsh plant revegetation, California Ridgway’s rail (rail) monitoring, and community outreach and job training in partnership with the long-term Invasive Spartina Project (ISP) led by the State Coastal Conservancy (SCC) and the United States Fish and Wildlife Service (USFWS) as the state and federal leads.

Pacific cordgrass (native Spartina) is an important native species in the Estuary’s tidal marshes and mudflats as the primary plant that naturally occurs at the low intertidal zone between bay waters and tidal marsh edge. Pacific cordgrass contributes to the base of the food chain in the bay and provides critical habitat where a variety of species hide from predators, forage, and nest. Atlantic cordgrass (invasive Spartina), native to the East Coast, was introduced by the Army Corps of Engineers in the early 1970’s and subsequently hybridized with the native Spartina. Invasive Spartina invades both tidal mudflats and marshes and scientists have documented changes in the physical structure and plant communities in these habitats, and the resulting degradation of biodiversity and habitat values for native species. The ISP is a successful regionwide collaborative effort to eradicate invasive Spartina that was started in 2000 by the SCC and USFWS. The ISP engages a network of more than 150 partners, including Cal-IPC, local, state, and federal resource agencies, non-profit organizations, local small business contractors, universities, environmental consultants, and landowners to implement the project. This coordinated regional project is critical to the protection of native tidal marsh restoration throughout the Estuary, due to concerns of rapid and aggressive spread of the invasive species and alteration of native tidal marsh and mudflat habitats. The ISP has also been successful in securing local, state, and federal funding for continuous treatment and, as of 2019, the project has reduced the net acreage of invasive Spartina by 95%, from the high of 805 net acres in 2005 down to 38 net acres in 2019 (Exhibit 2). Net acreage refers to the size of the infestation if the space between stems were subtracted from the overall footprint of the plant or clump of plants, and is the metric typically used in botanical surveys.

The ISP also includes a revegetation program to propagate and outplant native marsh plants such as Pacific cordgrass (Spartina foliosa) and marsh gumplant (Grindelia stricta). Both of these native marsh species will provide needed habitat for wildlife in the near-term and will serve as seed sources for further spread throughout nearby marshes. Both species provide nesting substrate for rails, and gumplant in particular is at a higher tidal elevation and provides the vertical structure necessary for high tide refuge. The ISP has planted 475,000 native marsh plants at 40 sites since 2011 (Exhibit 3). Although invasive Spartina cover has been reduced to 38 net acres, the remaining plants are not concentrated in a single location. Rather, the invasive Spartina is known to persist in specific locations within the entire 70,000 acres of tidal wetlands, and these locations still need to be monitored and treated to ensure future completion of eradication DocuSign Envelope ID: 3B7E4488-DCB4-415B-A3C8-967FF9265E05 Exhibit B of invasive Spartina. Regional eradication is the goal of ISP because any untreated invasive Spartina left in the Estuary would quickly repopulate treated areas.

Eradication of invasive Spartina is essential to protecting the substantial investments of the restoration projects funded by the Authority and other agencies to date. This project will support the ISP over the next two years to advance the eradication of invasive Spartina and to implement the restoration enhancements which will help to fulfill recommendations included in multiple regional plans listed under the “Consistency with Measure AA Prioritization Criteria” below. The project activities will restore the natural ecological functions of tidal marsh habitat and improve habitat values for fish and wildlife. Furthermore, the project is ready to be implemented immediately. The project has an established invasive Spartina monitoring and treatment protocol from the ISP for the project areas, as well as revegetation implementation and monitoring plans, and rail monitoring protocols that have successfully been implemented from 2005 to present. The project is a baylands restoration project that has all applicable permits that are necessary to complete the scope of work. The project will renew any relevant permits over the grant timeframe as needed.

The project is intended to be implemented from November 1, 2020 – January 31, 2023. The project consists of the following components: 1. Project Management: Cal-IPC, along with SCC will oversee planning and management of the project, coordinate partners and oversee work by subcontractors including lead subcontractor Olofson Environmental, Inc. (OEI). 2. Invasive Spartina Monitoring and Treatment: a. Invasive Spartina will be located and mapped from May - November 2021 and May - November 2022 to inform treatment operations for the following season. b. Herbicide will be applied directly on occurrences of invasive Spartina from May November 2021 and May - November 2022 by OEI and additional licensed professionals subcontracted by Cal-IPC and according to established and permitted protocols. 3. Habitat Enhancement: A local native plant nursery will be subcontracted to grow approximately 36,000 native marsh plants, and environmental contractors will outplant these seedlings at selected tidal marsh locations in two winter seasons, November 2020 – April 2021 and November 2021 – April 2022. 4. Rail Monitoring: OEI and Point Blue Conservation Science (Point Blue) will conduct annual call count surveys for rail at key marsh locations. Point Blue will analyze survey data from 2012-2020 to develop an update to the previous 2012 range-wide population estimate for rail. 5. Community Outreach and Job Training: Cal-IPC will engage members of diverse community groups in eight presentations followed by discussions regarding Estuary stewardship; attend meetings and present to all seven county-based Weed Management Areas in the Bay Area; send email updates on the project to 200 organizations and contacts in the region; and hold 16 professional trainings for Conservation Corps members (primarily disadvantaged young adults) and local conservation volunteer groups. Lastly, Cal-IPC will work with SCC, USFWS, and OEI to create a simplified, updated project website that hosts all project data and documents to provide modern accessibility to project information. Cal-IPC is qualified and appropriate for this particular project because it is an eligible private non-profit organization, the organization is experienced in work to reduce invasive plants in California, and it is one of the lead organizations in coordinating and implementing the ISP. DocuSign Envelope ID: 3B7E4488-DCB4-415B-A3C8-967FF9265E05 Exhibit B CAL-IPC is a leader in advancing state policy and coordination on invasive plant issues. CalIPC's leadership in this regard is exemplified by their coordination of information sharing opportunities, such as a quarterly statewide management calls with multiple agencies and an annual statewide conference that brings together hundreds of practitioners and agency staff engaged in invasive plant prevention and control.

Site Description: The project area encompasses 70,000 acres of intertidal wetland and mudflat habitat of the Estuary and includes work on public and private lands in the nine Bay Area counties (Marin, Sonoma, Napa, Solano, Contra Costa, Alameda, Santa Clara, San Mateo, and San Francisco). Please see Exhibit 1 for the Project Area Map. The project area is divided into 219 sub-areas within 11 regions, to allow for best access and logistical planning. The project area overlaps with the San Francisco Bay Trail and Water Trail in numerous locations around the bay, as well as with local, state, and federal wetlands reserves, refuges, and protected habitat sites. Native marshes not only provide habitat and climate adaptation benefits, but also important opportunities for boating, hunting, birdwatching, photography, and other recreation. The project protects this habitat for people who access these trails or recreate in marsh waters.

PROJECT FINANCING San Francisco Bay Restoration Authority $4,000,000 USFWS (Pending) $1,000,000 SCC $974,490 Project Total $5,974,490 SCC has contributed $974,490 of Proposition 68 funds to support project activities. Project partners have submitted a grant application to the USFWS’s National Coastal Wetlands Grant Program which, if successful, would provide sufficient funds to cover the total project cost of $5,974,490. Cal-IPC and SCC continue to fundraise and will apply to other funding sources if the USFWS grant is not funded.

CONSISTENCY WITH AUTHORITY’S ENABLING LEGISLATION, THE SAN FRANCISCO BAY RESTORATION AUTHORITY ACT: Consistent with Section 66704.5(a), Cal-IPC is a private non-profit entity. Consistent with 66704.5(b) the project will “restore, protect, or enhance tidal wetlands, managed ponds, or natural habitats on the shoreline in the San Francisco Bay area.” The project will advance eradication of invasive Spartina in the Estuary which will allow the 70,000 acres of native habitat to recover from the infestation and be protected from future infestation. In addition, 36,000 native plants will be planted to expedite the recovery of native tidal marsh. Consistent with Section 66704(e) this award will be used to support monitoring, operation, and maintenance.

CONSISTENCY WITH MEASURE AA PROGRAMS AND ACTIVITIES:

This authorization is consistent with Measure AA’s Vital Fish, Bird and Wildlife Habitat Program since it will restore wetland habitat to benefit wildlife such as the salt marsh harvest mouse, rail, and native marsh plants.

CONSISTENCY WITH MEASURE AA PRIORITIZATION CRITERIA:

1. Greatest positive impact: This project has a beneficial regional impact on 70,000 acres of baylands and will protect and enhance native tidal marshes and mudflats that support native fish, birds, tidal marsh plants, and other wildlife. A portion of this area includes tidal mudflats, and the eradication of invasive Spartina is critical to maintaining unvegetated DocuSign Envelope ID: 3B7E4488-DCB4-415B-A3C8-967FF9265E05 Exhibit B mudflats that provide food and habitat resources for shorebirds that use San Francisco Bay as a critical migration stop to rest and feed while migrating thousands of miles on the Pacific Flyway. The outreach and engagement with diverse communities, stakeholder network, and job trainings with Conservation Corps and volunteer conservation groups will help make more Bay Area residents aware of the importance of healthy tidal habitats and the invasive weed control methods to protect them. By removing invasive Spartina and revegetating native tidal marsh habitats, this project protects the long-term ecosystem integrity and physical structure of the Estuary, including habitat for the endangered rail and salt marsh harvest mouse. 2. Greatest long-term impact: The project will protect the health of the Estuary’s marsh habitats for the long term because removing invasive Spartina makes these areas feasible for successful restoration rather than becoming a breeding or hybridization ground for the invasive plant. In the absence of management, invasive Spartina would infest virtually all of the Estuary’s tidal marsh and mudflat habitat, decreasing the diversity of flora and fauna and habitat structure, and risking the investment in tidal marsh restoration to date.

3. Leveraging resources and partnerships: An Authority grant for this project would leverage secured funding from SCC and a pending USFWS application, if funded. The project includes more than 150 landowners and partners, and their work on invasive Spartina monitoring and removal and native revegetation helps to protect and leverage all of the tidal wetland Authority projects that are funded [Exhibit 6, Project Letters]. 4. Economically disadvantaged communities: The tidal marsh habitats are a resource for all communities in the Bay Area. Some project sites occur adjacent to socioeconomically disadvantaged communities based on the block group and census tract data presented on the interactive map available on the SFBRA website. This provides an excellent opportunity for public engagement for the project in areas such as Cooley Landing in East Palo Alto, Emeryville Crescent adjacent to West Oakland, Candlestick Point State Recreation Area and Heron’s Head Park in the Bayview Hunters Point neighborhood, and the San Rafael Canal area in Marin County. The Conservation Corps trainings included as part of this project provide technical training for green jobs and workforce development for young adults from these disadvantaged communities.

5. Benefits to economy: Protecting the Estuary’s tidal marsh habitat and the wildlife it supports also protects a tourism economy that prizes the area for its natural attractions. The project will restore and enhance many sites that allow public access to tidal areas. Habitat enhancements increase opportunities for wildlife viewing and bird watching for walkers and kayakers. The project also increases opportunities for hunters on open water within sites including Eden Landing Ecological Reserve, Ravenswood Open Space Preserve, and Don Edwards National Wildlife Refuge. Invasive Spartina treatment enhances access for small boaters and reduces annual dredging expenditures to protect communities from flooding by preventing invasive cordgrass from establishing in navigable slough flood control channels. Work on the Project itself provides employment for Bay Area residents, and the trainings included as part of the Project aim to increase employment in conservation fields from disadvantaged communities.

6. Engage youth and young adults: This project will provide 16 trainings on invasive plant management for Conservation Corps members through CiviCorps in Oakland, the San Francisco Corps, the San Jose Corps and the North Bay Corps. Corps members are young adults, typically from disadvantaged backgrounds. Trainings will be designed to build ecological literacy, provide job skills needed for invasive plant management and other DocuSign Envelope ID: 3B7E4488-DCB4-415B-A3C8-967FF9265E05 Exhibit B resource protection work, connect youth with staff from local park districts, and provide career pathways through internships. 7. Monitoring, maintenance, and stewardship: The project will use ISP’s detailed monitoring protocols to track the distribution of invasive Spartina, the effectiveness of treatment and revegetation, and to track the populations of rail using call-count data. This monitoring serves to inform ongoing project implementation and also provides valuable data that is used in a wide variety of applications by other entities working on wetland restoration and rail protection in San Francisco Bay. The long-term success depends on the implementation of annual monitoring and treatment over the 70,000-acre project area until there are three years of confirmed zero detections at the sites. Habitat enhancement will also include ongoing monitoring and stewardship of revegetated sites to help native plants establish, and the creation of rail habitat where possible.

8. Coastal Conservancy’s San Francisco Bay Area Conservancy Program: The project is fully consistent with the project selection criteria for SCC and has been led by the SCC and USFWS since 2000. The project is multijurisdictional and serves the regional Bay Area constituency. Because the project is underway with previous funding from multiple agencies, it can be implemented right away with Authority funding. Steady work on an annual basis is essential to secure the gains made to date, thus the project provides an opportunity for benefits that could be lost if the project is not quickly implemented. The Project includes matching contributions of funding and assistance from other sources (SCC and pending grant application to USFWS). Funding for the ISP has come from many sources over the years— local, state, federal, and private funds—and extensive partners around the region substantially assist in making the effort a success. The project is also consistent with numerous state and regional plans: a. California Water Action Plan (2016 update): The project directly implements California Water Action Plan Action 4 – Protect and Restore Important Ecosystems – by reversing coastal wetland habitat degradation with treatment, enhancing substantial tidal marsh habitat by planting natives and also creating high tide refuge for key marsh species as part of the habitat enhancement tasks. b. CA Wildlife Action Plan (2015 update): This project will contribute to the BayDelta and Central Coast regional goals of achieving by 2025 a 5% increase from 2015 levels in acres with desired structural diversity and enhancing acres of habitat that provide high-tide refugia with treatment and habitat enhancement activities. c. California Aquatic Invasive Species Management Plan (2008): The ISP is presented as an eradication case study in the plan, which focuses on non-native plants, algae, crabs, clams, fish and other species that invade California’s natural waterways. The plan aims to prevent the economic and environmental impacts caused by the spread of these invasive species. The proposed project supports the eight objectives of the plan directly through regional eradication of invasive Spartina through monitoring and treatment, replanting of native tidal marsh plants, and protection of local endangered species and threatened tidal marsh habitat. d. Baylands Ecosystem Habitat Goals Report (1999): The original goals report presents goals and recommendations to restore vital habitat in the Bay area and prioritize support for the ISP. The project will support many of these goals, in particular its emphasis on controlling invasive species and restoring tidal marsh along the Bay edge by enhancing tidal mudflat and marsh physical habitat and functions through treatment and habitat enhancement. This will provide for foraging, roosting, nesting, and refugia for resident and migratory species. DocuSign Envelope ID: 3B7E4488-DCB4-415B-A3C8-967FF9265E05 Exhibit B e. SF Bay Subtidal Habitat Goals Report (2010): The goals report presents goals and recommendations for regional management of the subtidal and intertidal habitats in the Bay. The report specifically calls for the eradication of invasive Spartina to avoid inevitable monoculture and major loss of habitat function. The project directly implements Cross-Habitat Invasive Species Control Objective 1, Action 1-1 to continue to fund and implement the ISP in order to enhance food resources and habitat benefits for aquatic species in the bay. f. USFWS Recovery Plan for Tidal Marsh Ecosystems of Northern and Central CA (2013): The plan addresses the federally endangered California Ridgway’s rail and salt marsh harvest mouse, as well as several plant species present in the Estuary. The proposed project supports objectives through treatment of invasive Spartina and habitat enhancements such as replanting natives and high tide refugia that will benefit these endangered species as sea level rises. g. Baylands Goals Science Update (2015): The update documents the progress made toward achieving the 1999 Baylands Goals and outlines strategies for continuing restoration progress in the face of climate change and sea-level rise. The Project is consistent with the Update’s recommendations to treat invasive Spartina and increase resilience to sea level rise by restoring tidal marsh along the Bay edge and enhancing tidal marsh and mudflat physical habitat and functions. h. State Coastal Conservancy’s 2018-2022 Strategic Plan: The project is consistent with Objectives 12A, 12B, and 12D which call for the protection of tidal wetlands and subtidal habitat, protection of wildlife, and the enhancement of tidal wetlands and subtidal habitat. This project protects tidal wetlands, subtidal habitat and wildlife through the eradication of invasive Spartina, as well as enhances these habitats through planting of native vegetation.

9. San Francisco Bay Conservation and Development Commission’s Coastal Management Program. The Project is consistent with the San Francisco Bay Conservation and Development Commission’s “San Francisco Bay Plan”: a. Fish, Other Aquatic Organisms and Wildlife Policies 1 and 2 by removing invasive Spartina which protects tidal marsh and mudflats and native marsh plant revegetation. b. Tidal Marshes and Tidal Flats Policies 1 and 6 by protecting and restoring native tidal marsh and flat and by having a biological monitoring program in place for native vegetation and rail.

10. San Francisco Bay Joint Venture’s (SFBJV) Implementation Strategy. This project’s goals are consistent with the SFBJV’s work to protect, restore, increase and enhance wetlands and mudflats throughout the SF Bay region to benefit birds, fish and other wildlife. The project is located entirely within SFBJV’s boundary and invasive Spartina eradication is on SFBJV’s list of adopted projects. COMPLIANCE WITH CEQA: The 2003 “San Francisco Estuary Invasive Spartina Project: Spartina Control Program Volume 1: 2003 Final Environmental Impact Statement/Environmental Impact Report” and “Volume 2: Appendices” (EIR) was prepared for the ISP pursuant to the California Environmental Quality Act (CEQA) by lead agencies SCC and USFWS (Exhibit 4). The EIR is a programmatic environmental impact report (Section 15168 of the CEQA Guidelines, 14 Cal. Code of Regulations, Sections 15000 et seq., hereafter “Guidelines”) in that it analyzes the potential DocuSign Envelope ID: 3B7E4488-DCB4-415B-A3C8-967FF9265E05 Exhibit B environmental effects of implementing the ISP on a regional scale, rather than the effects of any one or more individual treatment sites. The program-level EIR identifies mitigation measures that will be applied to reduce or eliminate impacts at various treatment locations, under varying site characteristics and conditions, and using varying methods of treatment. The EIR identified and addressed potentially significant effects of the ISP programmatic activities with respect to the following: Geomorphology and Hydrology, Water Quality, Biological Resources, Noise, Human Health and Safety, Visual Resources, Land Use, Cultural Resources, Land Use, Socioeconomic, Environmental Justice, and Cumulative Impacts. Where potential impact was found, the ISP has integrated the relevant mitigation measures from the Mitigation Monitoring and Reporting Program (MMRP) found in the “Volume 2: Appendices” of the EIR into ISP monitoring and treatment protocols. The ISP has followed those protocols, as well as implemented best management practices and habitat enhancement for the rail. The following categories were found to have significant impact:

1. Hydrology and Geomorphology a. Erosion or deposition of sediments caused by removal of invasive Spartina. This is mitigated by using temporary erosion controls in areas where erosion rates may be significantly greater than background levels or threatening stability to any existing infrastructure. b. Erosion or topographic change by vehicles used in eradication. This is mitigated by using mats to distribute the weight of a vehicle parked on marsh surfaces, and accessing locations by boat instead of overland vehicles in sensitive sites. c. Remobilization of sand at sensitive locations. This is mitigated by sand nourishments, and the repair or replacement of existing erosion control structure as needed. d. Sediment disposal of sediments dredged at treatment sites, which may contain seeds of invasive Spartina that can be dispersed and grow elsewhere in the Estuary. This is mitigated by disposing of sediments in upland disposal site or at depths in sites proposed for tidal marsh restoration (as prioritized in the Long Term Management Strategy for Bay dredged material).

2. Water Quality a. Degradation due to herbicide application, herbicide spills or fuel spills. Herbicide is applied under NPDES Permit from the State. Any harmful effects of herbicide application is mitigated by applying directly to invasive Spartina at low tide, in accordance with application guidelines and the manufacturer label, and applied by or under the direct supervision of a trained, certified or licensed applicator. Fuel spills are mitigated by maintaining fuel and storage offsite. In addition, a spill prevention plan is to be developed as a mitigation measure. b. Contaminant remobilization caused by ISP treatment activities. This is mitigated by researching and sampling, if needed, of any site where there may be contamination. If contamination is present, the Waste Discharge Requirements shall be obtained for operations. 3. Biological Resources a. Disturbance to tidal and subtidal marsh plant communities. These effects are minimized by prioritizing boat access over vehicle and foot pathways, removing any plant or soil debris that accumulates as a byproduct of treatment out of the marsh completely, avoid spraying non-target vegetation by covering with fabric DocuSign Envelope ID: 3B7E4488-DCB4-415B-A3C8-967FF9265E05 Exhibit B or pre-treating the area with protective films of silt-clay, prioritizing the removal of invasive Spartina over control of invasive Spartina, and restricting equipment working in marsh to areas with mats and geotextile fabric covers. For subtidal habitats in particular, installing temporary water-permeable debris barriers around vulnerable areas and avoid transporting tanks of spray solution near these areas in addition to the minimization methods above. b. Harm to special-status plant and wildlife species due to treatment and temporary habitat removal (invasive Spartina). Harm will be mitigated by conducting surveys and monitoring, avoiding known sensitive habitat, and by having a qualified biologist on the crew who can identify sensitive habitat in the vicinity. Additional mitigation measures are listed as follows by groups of species: i. For sensitive plant populations near the high tide line, mitigation measures are to remove large plant debris during growing season and refrain from burning in marshes supporting sensitive plant species. During herbicide treatment, cover non-target vegetation or install spray-drift barriers. ii. For shorebirds and waterfowl, mitigation measures are to schedule any treatment activities for work within 1,000 feet of mudflats to avoid peak fall and spring migratory birds, avoid helicopter applications of herbicide to mudflat colonies within 1,000 feet of major habitual roosting or foraging sites, and, as a last resort, haze shorebirds and waterfowl within 1,000 feet of spray operations. iii. For salt marsh harvest mouse and tidal marsh shrew subspecies, mitigation measures are to minimize vehicle and foot access pathways in potential tidal marsh habitat, restrict equipment working in marsh areas with mats and geotextile fabric covers, and schedule work in suitable habitat soon after natural mass-mortality events such as extreme high tides. iv. For San Francisco Bay harbor seals, mitigation measures are to minimize vehicle and foot access pathways in marsh within 1,000 feet of seal haulouts, avoid approaching haul-outs within 2,000 feet, consult with marine mammal experts to determine seasonal variation in sensitivity to disturbance, and transport any pre-mixed solutions of herbicide in doublelined containers and remediate spilled solutions on mudflats to the greatest extent feasible. v. For the California rails (Ridgway’s, formerly known as Clapper rail, and black rail), mitigation measures are to follow "best management practices" in the EIR Appendix G (Exhibit 4), as modified by the most recent 2018 US Fish and Wildlife Service's Biological Opinion. These protocols are based on (1) current survey and map data to determine distribution and abundance of rails in relation to project sites, and local behavior of rails in occupied habitats; (2) training and expert biological supervision of field crews to detect clapper rails and identify habitat; (3) modification of timing and within-site location of operations to minimize or avoid disturbances to clapper rails. Unavoidable significant impacts are due to eradication of invasive Spartina which provide habitat currently occupied by clapper rails. Proportional compensatory mitigation is necessary for unavoidable impacts and the primary components of this mitigation include revegetation of areas where treatment has occurred, and hightide refuge construction. DocuSign Envelope ID: 3B7E4488-DCB4-415B-A3C8-967FF9265E05 Exhibit B vi. For tidal marsh song sparrow subspecies and salt marsh common yellowthroats, mitigation measures are to adapt protocols for minimization and avoidance of California clapper rail and avoid occupied habitat during the breeding season. vii. For Western snowy plovers and California least terns, mitigation measures are to survey levee routes for potential nests and avoid those areas, conduct dredging and excavation of invasive Spartina either after least terns have migrated out of San Francisco Bay, or during middle to lower tidal stages that allow ease of access to invasive Spartina plants for barge and crane equipment. viii. For Chinook salmon and steelhead (anadromous salmonids), Delta smelt, Sacramento splittail, and other shallow water fish that may be impacted by dredging and herbicide application, mitigation measures are to limit dredging of intertidal channels to tidal stages when target areas are above water level, and seasons where the winter- and spring-run Chinook salmon and steelhead migration is not occurring. In addition, impoundment techniques used to drown large invasive Spartina infested marshes in former diked baylands should be limited to tide areas above mean high water for Chinook salmon and steelhead but eliminated in areas Delta smelt or splittails occur. Herbicide use should be minimized or avoided near channels and mudflats during Chinook salmon and steelhead migration and herbicide drift minimized as much as possible. ix. Limit mosquito production in tidal marshes by monitoring access routes in marshes to detect formation of undrained depressions in tire ruts or foot trails. Where impoundments are used, design impoundments of sufficient size and depth to minimize mosquito breeding habitat. 4. Air Quality a. Air quality affected by dust kicked up from vehicles and/or other treatment procedures. This is mitigated by suspending activities when winds are too great to prevent visible dust clouds and limiting traffic speeds to 15 miles per hour on dirt access road when sensitive receptors (i.e., houses, schools, hospitals) are located within 500 feet of the treatment site. Smoke and ash emissions from prescribed burns must notify the Bay Area Air Quality Management District and the Agriculture Commissioner prior to initiating the burn, and/or obtain a burn permit. b. Herbicide application effects on air quality. Prepare and implement an herbicide drift management plan for aerial application within 0.5 miles of sensitive receptors or densely populated areas to reduce the possibility of chemical drift into areas with sensitive receptors and avoid spraying when winds exceed 10 miles per hour. 5. Noise a. Noise by project equipment and machinery. This is mitigated by complying with all applicable local noise ordinances and policies or, at a minimum, limit the use of equipment and machinery in invasive Spartina removal to weekdays (Monday-Friday) between the hours of 7:00 a.m. to 7:00 p.m. within 500 feet of sensitive receptors, and helicopters will not be used within 1,500 feet of sensitive receptors. 6. Human Health and Safety DocuSign Envelope ID: 3B7E4488-DCB4-415B-A3C8-967FF9265E05 Exhibit B a. Worker injury from accidents associated with non-native cordgrass treatment. This is mitigated by following appropriate safety procedures, using proper safety equipment, and training treatment workers in order to ensure worker safety. b. Worker health effects from herbicide application. This is mitigated by following appropriate health and safety procedures and equipment as described on the herbicide or surfactant label and only allowing certified or licensed herbicide applicators to mix and apply herbicide. Herbicide application will follow air quality mitigation measures in addition to providing public notice of treatment a week prior to application, avoiding areas where the public is likely to contact water or vegetation, putting up signs that will advise “no entry” for humans and animals to a treatment site until 8 hours after treatment, and avoiding treatment within 24 hours prior to the weekend or public holidays if the site is adjacent to high use areas. 7. Visual Resources a. Invasive Spartina removal temporarily changes the visual landscape. To minimize the effect, signs will be put up to provide a brief description of the nature and reason for the visual change whenever treatment of invasive Spartina occurs in areas adjacent, accessible, or visible to the general public. 8. Cultural Resources a. Disturbance or destruction of cultural resources from access and treatment. For all sites proposed for ground-disturbing control methods and grounddisturbing access (other than manual removal and smothering of invasive Spartina) a qualified archaeologist shall conduct an initial study and literature review to assess the site’s cultural resources. If cultural resources are abundant, alternate methods that do not disturb these resources will be used and/or the project will stop to allow time for cultural resources to be recovered by archeologists, and erosion control measures shall also be designed to avoid damaging cultural resources.

The MMRP was adopted September 2003 and titled “Mitigation Monitoring and Reporting Program, Invasive Spartina Project: Spartina Control Program”. The EIR (which includes the MMRP) and underlying documentation are on record at SCC.

An addendum to the EIR regarding the use of Imazapyr herbicide was added in 2005 and titled “2005 Addendum to the Programmatic Environmental Impact Report/Statement, San Francisco Estuary Invasive Spartina Project, Spartina Control” (Exhibit 6). CalEPA’s Department of Pesticide Regulation (DPR) approved imazapyr for estuarine use in summer 2005 and the ISP included the use of imazapyr in the Control Program because of benefits over the use of glyphosate, such as having lower toxicity, degrading more readily, and being more effective at treating invasive Spartina. The EIR did not analyze the potential effects of using imazapyr and associated surfactants and colorants, however section 15164(a) of the Guidelines specify that the an “addendum” to a previously certified EIR can be added without further environmental review if some changes or additions to a project are necessary and none of the conditions described in Guidelines Section 15162 calling for preparation of a subsequent EIR have occurred. Based on these conclusions, an Addendum to the FEIS/R, rather than a subsequent EIR, was the appropriate vehicle under CEQA to document the change in the ISP Control Program. The Addendum concludes that the change to imazapyr does not cause any new significant effects.

Statement of Overriding Considerations DocuSign Envelope ID: 3B7E4488-DCB4-415B-A3C8-967FF9265E05 Exhibit B The EIR also identified significant and unavoidable impacts. There will be unavoidable impact to the four identified biological species, the salt harvest mouse, tidal shrew, and rails (California Ridgway’s rail and California black rail). There will also be unavoidable impact to visual resources. Both unavoidable impacts are caused by the removal of invasive Spartina and are temporary. With respect to the significant and unavoidable impacts, staff recommends that the Authority adopt a statement of overriding considerations. The specific environmental and other benefits of the project described in this staff recommendation and detailed in the EIR outweigh and render acceptable the unavoidable adverse environmental effects. These project benefits are: 1) over the long term it is anticipated that the removal of invasive Spartina and planting of native vegetation will promote native vegetation to return to where it had previously been displaced, thus creating additional species habitat; 2) other restoration projects may move forward and add further native habitat without risk of infestation of invasive Spartina; 3) more severe long term impacts of invasive Spartina on tidal marsh species will be avoided. The EIR concludes, based on best available science, that without implementation of the ISP the spread of non-native cordgrass would expand, eventually creating an altered Estuary environment that would be less suitable for these four species and lead to more severe long-term impacts on them and on other species dependent on marsh and tidal area.

The unavoidable, significant impact on visual resources is likewise a short-term one. The change in vistas occurs only with and during treatment and the change is one-time. When balanced against the environmental benefits of the removal of an aggressive non-native plant that displaces native plants and impacts biological resources, there is little question that environmental concerns are best served by implementing the project.

For purposes of the 2020-2022 treatment seasons and subsequent years, the nature, duration, scope, location and site characteristics of the proposed treatment and control work remain consistent with the work analyzed in the 2003 EIR and 2005 Addendum. Staff recommends that the Authority find that the project has potentially significant effects that are avoided or substantially lessened with the identified mitigation measures, as well as significant and unavoidable environmental effects. Upon approval of the project, staff will file a Notice of Determination.

SCOPE OF WORK and BUDGET SAN MATEO COUNTY MOSQUITO & VECTOR CONTROL DISTRICT 2021-2022 Treatment Seasons San Francisco Estuary Invasive Spartina Project

for

Portions of Site 2: Bair & Greco Island Complex Site 16.2: Cooley Landing East Site 19: West San Francisco Bay

I. PROJECT DESCRIPTION

The purpose of this project is treatment of invasive hybrid Spartina alterniflora in the San Francisco Estuary. The Grantee will conduct treatment at up to 30 sub-areas within the following sites: West San Francisco Bay, Cooley Landing east, and Bair & Greco Island Complex as outlined in the Site-Specific Plans prepared by the Invasive Spartina Project’s Treatment Program Manager.

II. SCOPE OF WORK

Work Program Components:

1. Schedule

Spartina treatment timing is subject to restrictive tidal windows, weather, and access issues. The SMCMVCD Field Operations Supervisor will work with the ISP Treatment Program Manager to schedule treatment throughout the active growing season of the target plants. Scheduling will take into account the marsh entry date restrictions imposed by USFWS in the 2018-2022 Biological Opinion, seasonal timing related to differentiation of hybrid from native Spartina, and other considerations that could impact efficacy. Adequate lead time must be provided to enable ISP biologists to inventory sites ahead of treatment to improve efficiency and thoroughness. SMCMVCD will be accompanied by ISP staff during all treatment events to document that all Spartina has been accounted for and to maximize the sensitivity when working in California Ridgway’s rail habitat.

Conservancy Documents of Project Completion: The following completed documents are required as a condition of the California Invasive Plant Council (Cal-IPC) Agreement with the State Coastal Conservancy to disburse funds encumbered by the Agreement for work done at these sites. These documents must be provided within 20 days of Project completion.

. A “Mitigation Checklist” signed by the grantee and the ISP’s Treatment Program Manager (the Mitigation Checklist is included in Attachment 3: Environmental Compliance). . A “Request for Disbursement” form, fully executed, provided by the State Conservancy upon request.

Task 1 Project Management

Subtask 1.1 Project Management

The Grantee will coordinate with Cal-IPC’s Science Program Director to keep her informed about the status of the project. Grantee will be responsible for managing the budget and schedule, submitting requests for disbursement, submitting the annual report, and other project management activities.

Subtask 1.2 Subcontractor Selection

Grantee may award subcontracts, as necessary, to qualified consultants or other agencies.

The Grantee shall submit subcontractor qualifications and draft contract review to Cal- IPC for and approval prior to execution. The contract shall describe the scope of work and the products expected from each subcontractor. In the progress reports, the Grantee shall document all subcontractor activities, deliverables completed, progress, issues and proposed resolutions.

Task Deliverable(s): invoices, and subcontract documentation

Task 2 Site Treatment Brief description: Treatment of up to 48 treatment acres within the Bair & Greco Island Complex, Cooley Landing, and West San Francisco Bay Complex, including Alpine Helicopter treatment on Bair Island at B2 Northeast. Acreage based on previous year’s ISP Spartina inventory (since current-year inventory is not conducted until later in the season).

Task Deliverable(s): Final mitigation checklists

III. SCHEDULE

The Grantee agrees to submit all scheduled project deliverables in accordance with the schedule set forth in this agreement. In the event the Grantee anticipates any delay in the project schedule, the Contractor shall inform the Cal-IPC Science Program Director in writing prior to the scheduled due date of that task or deliverable.

In the event the project cannot be completed prior to the completion date of the Grant Agreement, the Grantee shall request an extension in writing, providing justification for the extension and a revised schedule of completion. There is no guarantee that the grant agreement will be extended.

Task Task Title Deliverable Estimated Completion Dates 2021 Season 1 Project • Requests for Disbursement Dec 30 for all 2021 Management • Copies of Subcontracts treatment 2 Site Treatment • Estimated Treatment Initiation Date July 28, 2021 • Estimated Treatment Duration 120 days • Estimated Treatment End Date October 19, 2021 • Final Treatment Report January 2022 2022 Season 1 Project • Requests for Disbursement Dec 30 for all 2022 Management • Copies of Subcontracts treatment 2 Site Treatment • Estimated Treatment Initiation Date July 28, 2022 • Estimated Treatment Duration 120 days • Estimated Treatment End Date October 19, 2022 • Final Treatment Report January 2023

IV. BUDGET OVERVIEW

Task Task Title Coastal County Total Conservancy Budget Grant 2021 Treatment Season 1 Project Management $400 $3000 $3400 2 2021 Site Treatment & $32,673.50 $0 $32,673.50 Preparations 3 Airboat repairs $0 $5,000 $5,000 4 Alpine Helicopters $6,000 $0 $6,000 (B2 Northeast) Total 2021 $39,073.50 $8,000 $47,073.50

2022 Treatment Season 1 Project Management $400 $3000 $3400 2 2022 Site Treatment & $31,731.12 $0 $31,731.12 Preparations 3 Airboat repairs $0 $5,000 $5,000

Total 2022 $32,131.12 $8,000 $40,131.12

TOTAL 2021-2022 $71,204.62 $16,000 $87,204.62

V. BUDGET DETAIL

5.1 Labor Rates

The airboat and pilot will be billed at $180 per hour. All other field and preparation work for Spartina treatment will be billed at a flat rate of $81.50 per hour for 2021 and $84.76 per hour for 2022. This rate covers both direct and indirect costs for treatment work. Accounting work will be billed at $50 per hour.

5.2 Direct Costs Direct costs to be billed at cost. There are no direct costs anticipated for 2021-2022 treatment at this time. All chemicals for treatment (herbicide, surfactant and dye) will be purchased under a separate Restoration Authority grant and are therefore not included in the SMCMVCD budget.

5.3 Subcontractor estimate Alpine Helicopters will perform an herbicide application over B2 Northeast (Bair Island). This firm normally has a three-hour minimum charge, as well as mileage and fuel surcharge; based on Alpine’s 2020 invoice, the 2021 cost is estimated at $6,000. By 2022, the ISP hopes to have the hybrid Spartina infestation at B2 Northeast reduced to the point where we can shift to ground-based treatment and no longer require a helicopter broadcast application.

2021-2022 Treatment Seasons

Funding Sources Conservancy SMCMVCD Total

Estimated Administrative Labor Costs Accounting $800 $800 Project Management $6,000 $6,000 Estimated Field Labor Costs Vector Control Technicians 2021: (169hrs. @ $81.50/hr.) $13,773.50 $ 13,773.50 Vector Control Technicians 2022: (162hrs. @ $84.76/hr.) $13,731.12 $13,731.12 Equipment Airboat and pilot (205 hrs. @ $180/hr.) $36,900 $36,900

Materials Costs Herbicide n/a n/a n/a Provided by Coastal Conservancy Surfactant n/a n/a n/a Provided by Coastal Conservancy Marker Dye n/a n/a n/a Provided by Coastal Conservancy

Equipment Maintenance and Repair Airboat Repairs $10,000 $10,000 Other Costs $6,000 $6,000 Alpine Helicopters (Bair B2 Northeast) FUNDING SOURCE SUBTOTALS $ 71,204.62 $16,000 $ 87,204.62

WORK PROGRAM TOTAL COST for 2021-2022 $87,204.62

San Mateo County MVCD Board of Trustees Meeting July 14, 2021

Agenda Item 5B.2

STAFF REPORT: Enrollment into the California Network and Telecommunications Program (CALNET) Contract for Cellular Business Services through Verizon Wireless

SUMMARY

Staff is asking the Board to approve enrollment into the Verizon Wireless services contract negotiated by the California Department of Technology’s California Network and Telecommunications Program (CALNET). With the expiration of the previous government- negotiated contract in early 2021, government agencies must choose between two recently negotiated contracts for discounted government rates: one established by CALNET, and the other established by the National Association of State Procurement Officials (NASPO). Staff reviewed both contracts. Staff determined that the CALNET contract offered the better set benefits with respect to cost and cellular services for the District.

BACKGROUND AND STATUS

Government agencies have collectively negotiated for standardized and discounted technology services for many years. Cellular services have been one of such integral services that warranted collective negotiations. CALNET negotiated a cellular services contract with Verizon Wireless on behalf of the counties, municipalities, and other government agencies in the state of California. NASPO negotiated cellular services – and several other mobile services – contracts with several major providers on behalf of thirty (37) states, and the counties, municipalities, and other government agencies within those states. Eligible government agencies may leverage any of the contracts to purchase or subscribe to cellular provider services at the negotiated prices for the duration of the contract, both of which expire in 2024.

ANALYSIS

A major distinction between the CALNET contract and NASPO contract is the consumption rate, which allows a user to pay per minute. The CALNET contract retains the consumption rate at San Mateo County MVCD Board of Trustees Meeting July 14, 2021

$0.06 per minute, whereas the NASPO contract does not include a consumption rate. The majority of District staff have been on a consumption plan, where the District has seen significant cost savings over the standard flat fee. In addition, the unlimited mobile data plan on CALNET also comes in two dollars less at $37.99 per month, as opposed to NASPO’s $39.99 per month. However, the NASPO contract does offer a mobile data only rate at $34.99 per month, which is $3 less than the undifferentiated CALNET rate of $37.99 per month.

The main benefit of the NASPO contract is with the breadth of mobile services negotiated in the contract, such as fleet management, mobile device management, and video meeting solutions. The District have reviewed some of these products in the past. District staff determined that these products are not needed at this time or have found products that are more suitable and/or more cost-effective than those offered through the NASPO contract.

Contract selection does not prohibit the District from switching or enrolling in the other contract. However, the District would need to consider the administrative overhead with switching or managing two contracts and respective bills.

RECOMMENDATION

Staff recommends the Board approve having the District Manager enroll into the CALNET contract for Verizon Wireless Services.

REFERENCE MATERIALS:

1. California Department of Technology (CALNET) Non-State Entity Service Policy and Agreement (NESPA) for Cellular Business Services from Cellco Partnership d/b/a Verizon Wireless

San Mateo County MVCD Board of Trustees Meeting July 14, 2021

Agenda Item 5 SUBJECT: CONSENT CALENDAR

RECOMMENDATION

Staff recommends the Board approve the Consent Calendar.

2. Approve authorizing the District Manager to enroll into the CALNET contract for continuation of Verizon Wireless Services.

Item 5C Retirement of Vehicles

1. Retirement of three pickup trucks from fixed asset inventory

Items 5B.1 and 5B.2 were evaluated by legal counsel and recommended by the Finance Committee

MATERIALS ATTACHED

A. Minutes 1. June 9, 2021, Board Meeting Minutes

B. Contracts and Agreements 1.1. Invasive Spartina Master Agreement 1.2. Invasive Spartina Workplan

San Mateo County MVCD Board of Trustees Meeting July 14, 2021

2.1. California Department of Technology (CALNET) Non-State Entity Service Policy and Agreement (NESPA) for Cellular Business Services from Cellco Partnership d/b/a Verizon Wireless

San Mateo County MVCD Board of Trustees Meeting

July 14, 2021

Agenda Item 5C SUBJECT: Retirement of three pickup trucks from fixed asset inventory

SUMMARY

Staff proposes to dispose of three technician trucks following procedures set out in the District Policy Manual. The trucks were replaced in early February through an Enterprise Fleet Management (“Enterprise”) lease. The three technician vehicles will be sold by Enterprise and the principle applied to lower the lease payment on the replacement units. The estimated amount of return will be $36,000.

BACKGROUND AND STATUS

District Policy 6020 Fixed Asset Inventory and 6050 Disposal of Surplus Equipment prescribe the procedure for disposing of equipment or other capital assets. A copy of the fixed asset retirement form is provided to the Finance Committee for review. It will be included on the Board meeting agenda for approval within the Consent Calendar if recommended by the Committee.

Staff is requesting that the Finance committee recommend the Board approve removing the following items from the District’s capital asset inventory:

2014 Nissan 1N6AD0CWQEN717417 Mileage: 64,542

2011 Nissan 1N6ADO0CW9BC436868 Mileage: 58,101

2010 Ford Ranger 1FTLR4FEOAPA00845 Mileage: 53,515

STAFF RECOMMENDATION

Staff recommends the Board approve removal of the vehicles listed from the Fixed Asset inventory because the items have expended their useful life.

San Mateo County MVCD Board of Trustees Meeting

July 14, 2021

REFERENCE MATERIALS ATTACHED

1. Fixed Asset Retirement Request for three technician vehicles

REFERENCE MATERIALS UPON REQUEST

1. District Policy 6020 Fixed Asset Inventory 2. District Policy 6050 Disposal of Surplus Equipment SAN MATEO COUNTY MOSQUITO AND VECTOR CONTROL DISTRICT FIXED ASSET RETIREMENT REQUEST FORM AS OF 7/2/2021

Inventory Purchase Capitalized Est. Residual No. Date Cost Value Asset Description Disposition 407 1/22/2014 $ 25,146 $ 12,000 2014 Nissan 1N6AD0CWQEN717417 Traded-in 375 11/1/2011 $ 20,836 $ 12,000 2011 Nissan 1N6ADO0CW9BC436868 Traded-in 342 11/25/2009 $ 23,575 $ 12,000 2010 Ford Ranger 1FTLR4FEOAPA00845 Traded-in

Total: $ 69,557 $ 36,000

Finance Admin Signature: Richard S. Arrow

District Manager Signature: Brian Weber

Board President Signature: Kati Martin

Date Signed: Recorded on Minutes Dated: 7/14/2021 Today's Date: 7/2/2021 San Mateo County MVCD Board of Trustees Meeting July 14, 2021

Agenda Item 6 & 7

RESOLUTION M-007-21

SUBJECT: Recommend the Board Approve Resolution M-007-21 Maintaining the Amount of the Special Mosquito Control Tax without changes for Mosquito Control Services for FY 2021-2022

RECOMMENDATION

Staff recommends the Finance committee recommend that the Board hold a public hearing and approve Resolution M-007-21, maintaining the amount of the Special Mosquito Control Tax without changes for Mosquito Control Services within the originally designated cities and unincorporated areas for Fiscal Year 2021-2022 and authorizing the continued collection of the Tax.

BACKGROUND AND STATUS

The District held a special tax measure election on Tuesday, November 2, 1982. The Measure A, Special Tax for Mosquito Control Services, passed at 74%. It provided for a tax of up to $3.75 per year per parcel per year to provide for mosquito control services. Each year the District fixes the amount of the tax for the upcoming fiscal year by resolution. The tax is a significant and vital source of revenue that allows the District to continue to provide those mosquito and vector control services that protect the public’s health, safety and welfare.

Resolution M-007-21 authorizes the fixing of the Special Mosquito Control Tax for Fiscal Year 2021-2022 at $3.74 per parcel; and authorizes the San Mateo County Controller to place the Special Mosquito Control Tax on the property tax roll for Fiscal Year 2021-2022.

The District contracts with SCI Consulting Group to collect the $3.74 per parcel for the original 13 cities.

Estimated number of parcels assessed: 130,152 Estimated total dollar assessment: $486,772.22 Lowest parcel assessment: $3.74 Highest parcel assessment: $3.74 San Mateo County MVCD Board of Trustees Meeting July 14, 2021

Person responsible for submitting the data: Sonia Ortega, Project Analyst SCIConsultingGroup 4745 Mangels Boulevard Fairfield, CA 94534 707.430.4300 x102 Phone [email protected]

REFERENCE MATERIALS ATTACHED:

1. Resolution M-007-21 2. District Special Tax and Benefit Assessment Map

REFERENCE MATERIALS UPON REQUEST

1. Notice of public hearing

RESOLUTION M-007-21

A RESOLUTION OF THE BOARD OF TRUSTEES OF THE SAN MATEO COUNTY MOSQUITO AND VECTOR CONTROL DISTRICT SETTING THE RATE FOR THE ANNUAL SPECIAL TAX FOR MOSQUITO CONTROL SERVICES AND DIRECTING THE COLLECTION PROCEDURES FOR SPECIAL TAX MEASURE A FOR FISCAL YEAR 2021-22

WHEREAS, the Mosquito Abatement and Vector Control District Law, codified at Health and Safety Code Section 2000 et seq., authorizes mosquito and vector control districts to levy special taxes to fulfill their mission of providing comprehensive mosquito and vector programs to study, prevent, control and abate vectors and vector-borne diseases pursuant to Government Code section 50075 et seq.

WHEREAS, pursuant to that authority, in 1982 the San Mateo County Mosquito and Vector Control (formerly Mosquito Abatement) District (“District”) proposed a special tax with a maximum amount of $3.75 per parcel per year be assessed on all parcels not exempted by law in the original boundaries of the District, as is depicted on the attached map (“Original Boundaries”), which is hereby incorporated by this reference; and

WHEREAS, on November 2, 1982, the voters approved the levy of an annual special tax for the environmental protection, prevention, and control of vector mosquito disease and annoyance. Following the election, the District has assessed and collected the tax at the same rate of $3.74 per parcel within the Original Boundaries each year; and

WHEREAS, the Board of Trustees of the District must annually fix the amount of tax in an amount not to exceed the maximum rate; and

WHEREAS, the District provided public notice of its intention to hold a public hearing on its decision to continue the special tax, which was posted on the outdoor announcement board of the District and published at least twice in the San Mateo County Times, a newspaper of general circulation in the District, at least fifteen (15) days prior to the date of said public hearing; and

WHEREAS, at the public hearing held on July 14, 2021, at the regular meeting of the Board of Trustees, all persons were afforded an opportunity to be heard; and

NOW, THEREFORE, BE IT RESOLVED by the Board of Trustees of the San Mateo County Mosquito and Vector Control District as follows:

1. Recitals. The foregoing recitals are true and correct and material to the adoption of this Resolution.

2. Taxation Rate. In order to maintain an adequate level of mosquito and vector control services the Board hereby determines that for July 1, 2021, through June 30, 2022, the special tax shall be collected according to the following schedule:

Parcels of real property within the Original Boundaries of the San Mateo County Mosquito and Vector Control District, not exempted by law, shall be taxed $3.74 per parcel. $3.74 per parcel, note exempted by law, is both the lowest and highest parcel assessment amount to be levied for fiscal year 2021-22.

Special taxes for fiscal year 2021-22 for Measure A shall continue to be levied at those rates specified in this resolution for fiscal year 2021-22 with an estimated total annual amount of $486,772.22.

3. Collection. The Board hereby directs the Manager of the District to file with the County Controller of San Mateo County a copy of this Resolution. The County Controller of San Mateo County shall, upon receipt of said Resolution, enter the amounts of said charges against the respective lots or parcels as they appear on the assessment roll for fiscal year 2021-22. The District Manager of the San Mateo County Mosquito and Vector Control District is authorized to approve corrections of said roll of special mosquito tax charges when investigation of requests for corrections indicate that charges were computed or erroneously entered on the roll.

4. Prior Proceedings. The Board hereby determines that all prior proceedings pertaining to the levy and continuation of the special parcel tax proposed herein were valid and taken in conformity with the requirements of the law.

5. Effective Date. This Resolution shall become effective immediately upon its adoption.

The foregoing Resolution was PASSED and ADOPTED by the Board of Trustees of the San Mateo County Mosquito and Vector Control District at a regular meeting held on this 14th day of July 2021, in Burlingame, California by the following vote:

AYES:

NOES: ABSENT: ABSTAIN ATTEST:

______Board Secretary Board President San Francisco County

Brisbane Daly City ¯ S. San Colma Francisco San Bruno San Francisco Bay

Pacifica

Highway Montara 101 Moss Beach Special Tax Princeton by the Sea El Granada

Kings Mountain Half Moon Bay Santa Clara County Pacific Ocean

San Gregorio La Honda

North and West County (Annexation Area)

Pescadero

Legend

Benefit Assessment- Zone B Santa Cruz Benefit Assessment - Zone A County Existing District - Special Tax

FILED IN THE OFFICE OF THE DISTRICT MANAGER AN ASSESSMENT WAS CONFIRMED AND LEVIED BY FILED THIS ______DAY OF ______, 21__ AT THE OF THE SAN MATEO COUNTY MOSQUITO THE BOARD OF TRUSTEES OF THE SAN MATEO HOUR OF ______O'CLOCK __.M. IN THE OFFICE OF AND VECOTR CONTROL DISTRICT, COUNTY OF SAN COUNTY MOSQUITO AND VECTOR CONTROL DISTRICT, THE COUNTY AUDITOR OF THE COUNTY OF MATEO, CALIFORNIA, THIS __th DAY OF _____, 21__. COUNTY OF SAN MATEO, ON THE LOTS, PIECES SAN MATEO, STATE OF CALIFORNIA, AT AND PARCELS OF LAND ON THIS ASSESSMENT THE REQUEST OF THE BOARD OF TRUSTEES DIAGRAM ON THE __th DAY OF JUNE, 21__ OF THE SAN MATEO COUNTY MOSQUITO AND ______FOR THE FISCAL YEAR 21__-__ AND SAID ASSESSMENT VECTOR CONTROL DISTRICT DISTRICT MANAGER DIAGRAM AND THE ASSESSMENT ROLL FOR SAID FISCAL YEAR WERE FILED IN THE OFFICE OF THE ______RECORDED IN THE OFFICE OF THE DISTRICT COUNTY AUDITOR OF THE COUNTY OF SAN MATEO ON COUNTY AUDITOR, COUNTY OF SAN MATEO MANAGER OF THE SAN MATEO COUNTY THE ______DAY OF ______, 21__. MOSQUITO ABATEMENT DISTRICT, COUNTY REFERENCE IS HEREBY MADE TO SAID RECORDED Note: OF SAN MATEO, CALIFORNIA THIS __th DAY ASSESSMENT ROLL FOR THE EXACT AMOUNT OF EACH REFERENCE IS HEREBY MADE TO THE MAPS AND DEEDS OF _____, 21__. ASSESSMENT LEVIED AGAINST EACH PARCEL OF LAND. OF RECORD IN THE OFFICE OF THE ASSESSOR OF THE COUNTY OF SAN MATEO FOR A DETAILED DESCRIPTION ______OF THE LINES AND DIMENSIONS OF ANY PARCEL SHOWN ______DISTRICT MANAGER HEREIN. THOSE MAPS SHALL GOVERN FOR ALL DETAILS DISTRICT MANAGER CONCERNING THE LINES AND DIMENSIONS OF SUCH PARCELS. EACH PARCEL IS IDENTIFIED IN SAID MAPS BY ITS DISTINCTIVE ASSESSOR'S PARCEL NUMBER

SAN MATEO COUNTY MOSQUITO AND VECTOR CONTROL DISTRICT Page 1 of 1 NORTH AND WEST COUNTY PREPARED BY SCI CONSULTING GROUP 4745 MANGELS BOULEVARD MOSQUITO AND DISEASE CONTROL ASSESSMENT DISTRICT FAIRFIELD, CA 94534 707-430-4300 ASSESSMENT DIAGRAM San Mateo County MVCD Board of Trustees Meeting July 14, 2021

Agenda Item 8.0

SUBJECT: PROPERTY ACQUISITON, DIRECT PLACEMENT, & LEASE PURCHASE FINANCING

Background: The San Mateo County Mosquito and Vector Control District (the “District”) is in the process of purchasing property located at 1415 North Carolan, Burlingame, CA to expand programming and operations. The District explored various financing alternatives and determined the best financing proposal was offered by Municipal Finance Corporation (the “Corporation”). They are also consultants to the CSDA Finance Corporation Lease Program.

Summary of Legal Structure and Documents: The financing will be structured as a lease/leaseback. The District’s obligation to make lease payments will be secured by an annual appropriation from the District’s general fund. The District will have a “purchase option” that will enable to pay down in part or in full any principal payments owing on the lease at the end of year 7. The documents for this financing are summarized below.

Site Lease: Pursuant to the site lease, the District leases the property to the Corporation in order to facilitate the financing of the property. It is anticipated that the District will then lease the property back from the Corporation pursuant to the lease agreement described below.

Lease Agreement: Under the Lease Agreement, the District agrees to lease the property back from the Corporation in exchange for the payment by the District of rental payments (representing a principal component and an interest component). The lease agreement describes certain covenants, representations and warranties of the District and the Corporation, as well as, among other things: (i) the terms and conditions related to the deposit and application of funds, (ii) the term of the financing and (iii) provisions related to the lease payments including the prepayment of lease payments.

Memorandum of Lease: This document memorializes and facilitates the recording of the Lease Agreement.

Assignment Agreement: This document is an agreement between the Corporation and a banking institution that is providing the funds to purchase the property.

15-Year Direct Placement Par Amount $3,825,000,000 Costs of Issuance $25,000 Property Purchase Funds $3,800,000 Interest Rate 2.90% Annual Lease Payments $318,094.12 Total Debt Service $4,771,411.80

1 San Mateo County MVCD Board of Trustee Meeting July 14, 2021

Recommendation:

Recommend the Board adopt a Resolution approving a site lease, lease agreement, and memorandum of lease; making certain determinations relating thereto; and authorizing certain other actions in connection therewith.

Next Steps:

The next steps following the adoption of Resolution are as follows:

 Finalize and execute financing documents.  Pre-Closing  Close transaction; fund lease

Staff will be available to answer any questions and address concerns.

Materials Attached:

1. Municipal Finance Corporation Quote 2. SMCMVCD District Lease Resolution 3. SMCMVCD Site Lease 4. SMCMVCD Lease Agreement 5. SMCMVCD Memorandum of Lease 6. Municipal Finance Corporation Lease Assignment Agreement

RESOLUTION M-009-21

RESOLUTION OF THE SAN MATEO COUNTY MOSQUITO AND VECTOR CONTROL DISTRICT APPROVING A SITE LEASE AND A LEASE AGREEMENT; MAKING CERTAIN DETERMINATIONS RELATING THERETO; AND AUTHORIZING CERTAIN OTHER ACTIONS IN CONNECTION THEREWITH

WHEREAS, the San Mateo County Mosquito and Vector Control District (the “District”) is a mosquito abatement district duly organized and validly existing under the laws of the State of California; and

WHEREAS, in order to provide funds to finance the acquisition of property located at 1415 N. Carolan Avenue in the City of Burlingame, California which property consists of 0.72 acres of land and is improved with a 19,142 square feet building within the boundaries of the District (the “2021 Project”), the District will lease certain real property owned by the District (the “Leased Property”) to the Municipal Finance Corporation (the “Corporation”) under a Site Lease, currently dated as of July 1, 2021, (the “Site Lease”) between the District and the Corporation and the Corporation will lease the Leased Property to the District under a Lease Agreement, currently dated as of July 1, 2021 (the “Lease Agreement”) between the Corporation and the District; and

WHEREAS, the District desires to obtain funds from CN Financing, Inc. (the “Lender”) in order to finance the 2021 Project; and

WHEREAS, pursuant to Section 265(b)(3) of the Internal Revenue Code of 1986, as amended (the “Code”), under certain circumstances, certain obligations the interest on which is exempt from federal income tax under Section 103 of the Code may be designated by the issuer thereof as “qualified tax-exempt obligations,” thereby allowing certain financial institutions that are holders of such qualified tax exempt obligations to deduct for federal income tax purposes a portion of such institution’s interest expense that is allocable to such qualified tax-exempt obligations, all as determined in accordance with Sections 265 and 291 of the Code; and

WHEREAS, the Board of Trustees of the District wishes to designate the Lease Agreement as a “qualified tax-exempt obligation” within the meaning of Section 265(b)(3) of the Code; and

WHEREAS, Senate Bill 450 (Chapter 625 of the 2017-2018 Session of the California Legislature) (“SB 450”) requires that the Board of Trustees of the District (the “Board”) obtain from an underwriter, municipal advisor or private lender and disclose, prior to authorization of the issuance of bonds, including debt instruments such as the Lease Agreement, with a term of greater than 13 months, good faith estimates of the following information in a meeting open to the public: (a) the true interest cost of the lease payments made pursuant to the Lease Agreement (the “Lease Payments”), (b) the sum of all fees and charges paid to third parties with respect to the Lease Agreement, (c) the amount of proceeds of the Lease Agreement expected to be received net of the fees and charges paid to third parties and any reserves or capitalized interest paid or funded with proceeds of the Lease Agreement, and (d) the sum total of all Lease Payments with respect to the Lease Agreement calculated to the final Lease Payment Date under the Lease Agreement plus the fees and charges paid to third parties not paid with the proceeds of the Lease Agreement; and WHEREAS, in compliance with SB 450, the Board obtained from the Lender the required good faith estimates and such estimates are disclosed and set forth on Exhibit A attached hereto.

NOW, THEREFORE, BE IT RESOLVED by the Board of Trustees of the San Mateo County Mosquito and Vector Control District as follows:

Section 1. Approval of Site Lease. The form of Site Lease, as presented to the District at this meeting, is hereby approved. The President, District Manager or any other officers duly designated by the District (each an “Officer,” and collectively, the “Officers”) are hereby authorized and directed, for and on behalf of the District, to execute, acknowledge and deliver the Site Lease, in substantially the form presented to the District at this meeting, with such changes therein as such Officers may require or approve, with the advice and approval of the District’s General Counsel and Kutak Rock LLP, Special Counsel, such approval to be conclusively evidenced by the execution and delivery thereof.

Section 2. Approval of Lease Agreement. The form of Lease Agreement, as presented to the District at this meeting, along with the Memorandum of Lease, is hereby approved. The Officers are hereby authorized and directed, for and on behalf of the District, to execute, acknowledge and deliver the Lease Agreement, in substantially the form presented to the District at this meeting, with such changes therein as such Officers may require or approve, with the advice and approval of the District’s General Counsel and Special Counsel, such approval to be conclusively evidenced by the execution and delivery thereof; provided that the aggregate principal component of the portion of the Lease Payments (as defined in the Lease Agreement) due under the Lease Agreement shall not exceed $3,825,000, the scheduled term of the financing does not exceed December 30, 2036 and the interest rate is not greater than 2.90% per annum.

Section 3. Approval of Private Placement. The District hereby approves the assignment of the Lease Payments by the Corporation to the Lender, by a private placement pursuant to and in accordance with an assignment agreement.

Section 4. SB 450 Good Faith Estimates. In accordance with SB 450, good faith estimates of the following have been obtained from the Lender and are set forth on Exhibit A attached hereto: (a) the true interest cost of the lease payments made pursuant to the Lease Agreement, (b) the sum of all fees and charges paid to third parties with respect to the Lease Agreement, (c) the amount of proceeds of the Lease Agreement expected to be received net of the fees and charges paid to third parties and any reserves or capitalized interest paid or funded with proceeds of the Lease Agreement, and (d) the sum total of all Lease Payments with respect to the Lease Agreement calculated to the final Lease Payment Date under the Lease Agreement plus the fees and charges paid to third parties not paid with the proceeds of the Lease Agreement.

Section 5. Bank Qualified. The Lease Agreement is hereby designated as a “qualified tax- exempt obligation” within the meaning of Section 265(b)(3) of the Code. The Board of Trustees hereby finds and determines that the aggregate face amount of all tax-exempt obligations (other than private activity bonds) issued by the District (and all subordinate entities thereof) during calendar year 2021 is not expected to exceed $10,000,000.

Section 6. Official Actions. The Officers are hereby authorized and directed, for and in the name and on behalf of the District, to do any and all things and take any and all actions which they, or any of them, may deem necessary or advisable in order to consummate the transactions as described

2 herein in connection with the financing of the 2021 Project, including but not limited to, entering into a purchase agreement or similar agreement with the Lender and a custodian agreement with a financial institution to be selected by the District.

Section 7. Ratification of Prior Actions. All actions heretofore taken (not inconsistent with the provisions of this Resolution) by the Board of Trustees or by the officers, employees and agents of the District directed toward the financing of the 2021 Project for the purposes herein set forth are hereby ratified, approved and confirmed.

Section 8. Effective Date. This Resolution shall take effect immediately upon adoption and the Board Secretary shall certify to its adoption.

PASSED, APPROVED, and ADOPTED at a regular meeting of the Board of Trustees of the San Mateo County Mosquito and Vector Control District, this 14th day of July 2021.

AYES:

NOES:

ABSENT:

ABSTAIN:

______President Board of Trustees

Attest:

______Secretary Board of Trustees

I hereby certify that the above Resolution No. ______was duly introduced, read and adopted by the District at a regular meeting held on July 14, 2021.

______Secretary Board of Trustees

3 EXHIBIT A

GOOD FAITH ESTIMATES

The following information was obtained from the Lender and is provided in compliance with Senate Bill 450 (Chapter 625 of the 2017-2018 Session of the California Legislature) with respect to the Lease Agreement:

1. True Interest Cost of the Lease Agreement. A good faith estimate of the true interest cost of the lease payments made pursuant to the Lease Agreement (the “Lease Payments”), which means the rate necessary to discount the amounts allocable as principal and interest components and payable on the respective Lease Payment Dates, as described under the Lease Agreement to the purchase price received for Lease Agreement, is 2.90%

2. Finance Charge of the Lease Agreement. A good faith estimate of the District’s finance charge of the Lease Agreement, which means the sum of all fees and charges paid to third parties (or costs associated with the Lease Agreement), is $25,000.

3. Amount of Proceeds to be Received by the District. A good faith estimate of the amount of proceeds expected to be received by the District for sale of the Lease Agreement less the finance charge of the Lease Agreement described in paragraph 2 above, is $3,800,000.

4. Total Payment Amount. A good faith estimate of the total payment amount, which means the sum total of all Lease Payments the District will make to pay their obligations on the Lease Agreement plus the finance charge of the Lease Agreement described in paragraph 2 above not paid with the proceeds of the Lease Agreement, calculated to the final Lease Payment Date under the Lease Agreement, is $4,771,411.80.

AFTER RECORDATION PLEASE RETURN TO:

Kutak Rock LLP 5 Park Plaza, Suite 1500 Irvine, CA 92614-8595 Attention: Albert R. Reyes, Esq.

THIS TRANSACTION IS EXEMPT FROM CALIFORNIA DOCUMENTARY TRANSFER TAX PURSUANT TO SECTION 11929 OF THE CALIFORNIA REVENUE AND TAXATION CODE. THIS DOCUMENT IS EXEMPT FROM RECORDING FEES PURSUANT TO SECTION 27383 OF THE CALIFORNIA GOVERNMENT CODE.

SITE LEASE

Dated as of July 1, 2021

between the

SAN MATEO COUNTY MOSQUITO AND VECTOR CONTROL DISTRICT

and the

MUNICIPAL FINANCE CORPORATION

SITE LEASE

THIS SITE LEASE (the “Site Lease”), dated as of July 1, 2021, is between the SAN MATEO COUNTY MOSQUITO AND VECTOR CONTROL DISTRICT, a mosquito abatement and vector control district organized and existing under and by virtue of the laws of the State of California (the “District”), as lessor, and the MUNICIPAL FINANCE CORPORATION, a corporation duly organized and existing under and by virtue of the laws of the State of California (the “Corporation”), as lessee;

WITNESSETH:

WHEREAS, pursuant to this Site Lease, the District proposes to lease certain real property situated in the City of Burlingame, County of San Mateo, State of California, more particularly described in Exhibit A attached hereto and made a part hereof and those certain improvements thereon (collectively, the “Property”) to the Corporation, all for the purpose of assisting the District in financing the construction and improvement of certain real property owned by the District.

WHEREAS, the Corporation proposes to lease the Property back to the District pursuant to that certain Lease Agreement, dated as of July 1, 2021, a memorandum of which is recorded concurrently herewith (the “Lease Agreement”) and to assign all of its rights, title and interest in, to and under this Site Lease and the Lease Agreement, including its right to receive lease payments under the Lease Agreement (the “Lease Payments”), its right to enforce payment of the Lease Payments and otherwise to enforce its interest and rights under the Lease Agreement in the event of a default thereunder by the District, to CN Financing, Inc. including its successors and assigns (the “Assignee”) pursuant to that certain Assignment Agreement, dated as of July 1, 2021, between the Corporation and the Assignee, and recorded concurrently herewith;

NOW, THEREFORE, IT IS HEREBY MUTUALLY AGREED, as follows:

Section 1. Definitions. Capitalized terms used, but not otherwise defined, in this Site Lease shall have the meanings ascribed to them in the Lease Agreement.

Section 2. Site Lease. The District hereby leases to the Corporation and the Corporation hereby leases from the District, on the terms and conditions hereinafter set forth, the Property.

Section 3. Term. The term of this Site Lease shall commence on the Closing Date, as defined in the Lease Agreement, and shall end on ______, 2036, unless such term is extended or sooner terminated as hereinafter provided. If, on ______, 2036, the aggregate amount of Lease Payments (as defined in and as payable under the Lease Agreement) shall not have been paid by reason of abatement, default or otherwise, or provision shall not have been made for their payment in accordance with the Lease Agreement, then the term of this Site Lease shall be extended until such Lease Payments shall be fully paid or provision made for such payment, but in no event later than ______, 2046. If, prior ______, 2036, all Lease Payments shall be fully paid or provision made for such payment in accordance with the Lease Agreement, the term of this Site Lease shall end.

Section 4. Advance Rental Payment. The District agrees to lease the Property to the Corporation in consideration of the payment by the Corporation of an advance rental payment of $______. The District and the Corporation agree that by reason of the assignment of the Lease

Payments to the Assignee under and pursuant to the Assignment Agreement, the advance rental payment referenced in the preceding sentence shall be deemed to have been paid.

Section 5. Purpose. The Corporation shall use the Property solely for the purpose of leasing the Property to the District pursuant to the Lease Agreement and for such purposes as may be incidental thereto; provided, however, that in the event of default by the District under the Lease Agreement, the Corporation and its assigns may exercise the remedies provided in the Lease Agreement.

Section 6. District’s Interest in the Property. The District covenants that it is the owner in fee of the Property.

Section 7. Assignments and Subleases. Unless the District shall be in default under the Lease Agreement, the Corporation may not assign its rights under this Site Lease or sublet the Property, except as provided in the Lease Agreement and the Assignment Agreement, without the written consent of the District and the Assignee. If the District is in default under the Lease Agreement, the Assignee (including its successors and assigns under the Lease Agreement) may fully and freely assign and sublease the Property or any portion thereof, subject to this Site Lease.

Section 8. Right of Entry. The District reserves the right for any of its duly authorized representatives to enter upon the Property at any reasonable time to inspect the same or to make any repairs, improvements or changes necessary for the preservation thereof.

Section 9. Termination. The Corporation agrees, upon the termination of this Site Lease, to quit and surrender the Property in the same good order and condition as the same were in at the time of commencement of the term hereunder, reasonable wear and tear excepted, and agrees that any permanent improvements and structures existing upon the Site at the time of the termination of this Site Lease shall remain thereon and title thereto shall vest in the District.

Section 10. Default. In the event the Corporation shall be in default in the performance of any obligation on its part to be performed under the terms of this Site Lease, which default continues for thirty (30) days following notice and demand for correction thereof to the Corporation, the District may exercise any and all remedies granted by law, except that no merger of this Site Lease and of the Lease Agreement shall be deemed to occur as a result thereof and the District shall have no right to terminate this Site Lease as a remedy for such default. Notwithstanding the foregoing, so long as the Lease Agreement remains in effect, the District will continue to pay the Lease Payments to the Assignee. In the event of the occurrence of an Event of Default under the Lease Agreement, the Corporation may (i) exercise the remedies provided in the Lease Agreement, (ii) use the Property for any lawful purpose, subject to any applicable legal limitations or restrictions, and (iii) exercise all options provided herein.

Section 11. Quiet Enjoyment. The Corporation, at all times during the term of this Site Lease, shall peaceably and quietly have, hold and enjoy all of the Property subject to the provisions of the Lease Agreement.

Section 12. Waiver of Personal Liability. All liabilities under this Site Lease on the part of the Corporation are solely liabilities of the Corporation and the District hereby releases each and every board member, director, officer, employee and agent of the Corporation of and from any personal or individual liability under this Site Lease. No board member, director, officer, employee

2 or agent of the Corporation shall at any time or under any circumstances be individually or personally liable under this Site Lease for anything done or omitted to be done by the Corporation hereunder.

Section 13. Taxes. All assessments of any kind or character and all taxes, including possessory interest taxes, levied or assessed upon the Property or the Corporation’s interest in the Property created by this Site Lease (including both land and improvements) will be paid by the District in accordance with the Lease Agreement.

Section 14. Eminent Domain. In the event the whole or any part of the Property is taken by eminent domain proceedings, the interest of the Corporation shall be recognized and is hereby determined to be the amount of the then unpaid principal component of the Lease Payments, any then unpaid interest component of the Lease Payments and any premium due with respect to the prepayment of Lease Payments to the date such amounts are remitted to the Corporation or its assignee, and, subject to the provisions of the Lease Agreement, the balance of the award, if any, shall be paid to the District. The District hereby waives, to the extent permitted by law, any and all rights that it has or may hereafter have to acquire the interest of the Corporation in and to the Property through the eminent domain powers of the District. However, the District hereby agrees, to the extent permitted by law, that the compensation to be paid in any condemnation proceedings brought by or on behalf of the District with respect to the Property shall be in an amount not less than the total unpaid principal component of Lease Payments, the interest component of Lease Payments accrued to the date of payment of all Lease Payments and any premium due with respect to the prepayment of Lease Payments under the Lease Agreement.

Section 15. Use of the Proceeds. The District and the Corporation hereby agree that the lease to the Corporation of the District’s right and interest in the Property pursuant to Section 2 serves the public purposes of the District.

Section 16. Partial Invalidity. If any one or more of the terms, provisions, covenants or conditions of this Site Lease shall, to any extent, be declared invalid, unenforceable, void or voidable for any reason whatsoever by a court of competent jurisdiction, the finding, order or decree of which becomes final, none of the remaining terms, provisions, covenants and conditions of this Site Lease shall be affected thereby, and each provision of this Site Lease shall be valid and enforceable to the fullest extent permitted by law.

Section 17. Notices. All notices, statements, demands, consents, approvals, authorizations, offers, designations, requests or other communications hereunder by either party to the other shall be in writing and shall be sufficiently given and served upon the other party if delivered personally or if mailed by United States registered mail, return receipt requested, postage prepaid, at the addresses set forth in the Lease Agreement, or to such other addresses as the respective parties may from time to time designate by notice in writing.

Section 18. Binding Effect. This Site Lease shall inure to the benefit of and shall be binding upon the District and the Corporation and their respective successors and assigns. The Assignee is hereby made a third-party beneficiary hereunder with all rights of a third party beneficiary.

Section 19. Amendment. This Site Lease may not be amended except as permitted under the Lease Agreement.

3 Section 20. Section Headings. All section headings contained herein are for convenience of reference only and are not intended to define or limit the scope of any provision of this Site Lease.

Section 21. Applicable Law. This Site Lease shall be governed by and construed in accordance with the laws of the State of California applicable to contracts made and performed in California.

Section 22. No Merger. Neither this Site Lease, the Lease Agreement nor any provisions hereof or thereof shall be construed to effect a merger of the title of the District to the Property under this Site Lease and the District’s leasehold interest therein under the Lease Agreement.

Section 23. Execution in Counterparts. This Site Lease may be executed in any number of counterparts, each of which shall be deemed to be an original but all together shall constitute but one and the same instrument.

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

4 IN WITNESS WHEREOF, the District and the Corporation have caused this Site Lease to be executed by their respective officers thereunto duly authorized, all as of the day and year first above written.

SAN MATEO COUNTY MOSQUITO AND VECTOR CONTROL DISTRICT

By: District Manager

MUNICIPAL FINANCE CORPORATION

By: Authorized Representative

5 CALIFORNIA ALL-PURPOSE ACKNOWLEDGEMENT 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 ______)

On ______before me, ______, 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 behalf of which the person(s) acted, executed the 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.

Place Notary Seal Above Signature of Notary Public

CALIFORNIA ALL-PURPOSE ACKNOWLEDGEMENT

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 ______)

On ______before me, ______, Notary Public, personally appeared ,

WITNESS my hand and official seal.

Place Notary Seal Above Signature of Notary Public

EXHIBIT A

DESCRIPTION OF THE PROPERTY The land referred to herein is situated in the State of California, County of San Mateo, City of Burlingame and described as follows:

A-1 CERTIFICATE OF ACCEPTANCE

This is to certify that the interest in real property conveyed by the Site Lease, dated as of July 1, 2021, from the San Mateo County Mosquito and Vector Control District, as lessor (the “District”), to the Municipal Finance Corporation (the “Corporation”), as lessee, is hereby accepted by the undersigned officer on behalf of the Corporation, pursuant to authority conferred by the Board of Directors of the Corporation adopted on July __, 2021, and the lessee consents to recordation thereof by its duly authorized officer.

Dated: July __, 2021

MUNICIPAL FINANCE CORPORATION

By: ______Authorized Representative

LEASE AGREEMENT

Dated as of July 1, 2021

between the

MUNICIPAL FINANCE CORPORATION

and the

SAN MATEO COUNTY MOSQUITO AND VECTOR CONTROL DISTRICT

TABLE OF CONTENTS

ARTICLE I DEFINITIONS; RULES OF INTERPRETATION ...... 1 Section 1.1. Definitions ...... 1 Section 1.2. Interpretation...... 5

ARTICLE II COVENANTS, REPRESENTATIONS AND WARRANTIES ...... 6 Section 2.1. Covenants, Representations and Warranties of the District ...... 6 Section 2.2. Covenants, Representations and Warranties of the Corporation ...... 9

ARTICLE III DEPOSIT AND APPLICATION OF FUNDS ...... 10 Section 3.1. Deposit of and Application of Funds ...... 10

ARTICLE IV LEASE OF PROPERTY; LEASE PAYMENTS ...... 10 Section 4.1. Lease of Property by the Corporation Back to the District ...... 10 Section 4.2. Term ...... 11 Section 4.3. Lease Payments ...... 11 Section 4.4. Quiet Enjoyment ...... 13 Section 4.5. Title ...... 13 Section 4.6. Release of Excess Property ...... 14 Section 4.7. Substitution of Property ...... 15 Section 4.8. Pledge of Assessment Revenues ...... Error! Bookmark not defined.

ARTICLE V MAINTENANCE; TAXES; INSURANCE; AND OTHER MATTERS ...... 16 Section 5.1. Maintenance, Utilities, Taxes and Assessments ...... 16 Section 5.2. Modification of Property ...... 17 Section 5.3. Commercial General Liability Insurance ...... 17 Section 5.4. Casualty Insurance ...... 17 Section 5.5. Rental Interruption Insurance ...... 17 Section 5.6. Worker’s Compensation Insurance ...... 18 Section 5.7. Recordation Hereof; Title Insurance ...... 18 Section 5.8. Insurance Net Proceeds; Form of Policies ...... 18 Section 5.9. Installation of District’s Personal Property ...... 18 Section 5.10. Liens ...... 19 Section 5.11. Advances...... 19 Section 5.12. District Consent to Assignment Agreement ...... 19 Section 5.13. Environmental Covenants ...... 19

ARTICLE VI EMINENT DOMAIN; USE OF NET PROCEEDS ...... 20 Section 6.1. Eminent Domain ...... 20 Section 6.2. Application of Net Proceeds ...... 20 Section 6.3. Abatement of Lease Payments in the Event of Damage or Destruction ...... 22

ARTICLE VII OTHER COVENANTS OF THE DISTRICT ...... 22 Section 7.1. Disclaimer of Warranties ...... 22 Section 7.2. Access to the Property; Grant and Conveyance of Right of Entry ...... 22 Section 7.3. Release and Indemnification Covenants ...... 23 Section 7.4. Assignment Agreement by the Corporation ...... 23

i Section 7.5. Assignment Agreement and Subleasing by the District ...... 24 Section 7.6. Amendment of Lease Agreement ...... 24 Section 7.7. Tax Covenants ...... 24 Section 7.8. Financial Statements ...... 25 Section 7.9. Records and Accounts ...... 25 Section 7.10. Observance of Laws and Regulations ...... 25 Section 7.11. Notices ...... 25

ARTICLE VIII EVENTS OF DEFAULT AND REMEDIES ...... 26 Section 8.1. Events of Default Defined ...... 26 Section 8.2. Remedies on Default ...... 26 Section 8.3. No Remedy Exclusive ...... 28 Section 8.4. Agreement to Pay Attorneys’ Fees and Expenses ...... 28 Section 8.5. No Additional Waiver Implied by One Waiver ...... 28 Section 8.6. Assignee to Exercise Rights ...... 28

ARTICLE IX PREPAYMENT OF LEASE PAYMENTS ...... 29 Section 9.1. Optional Prepayment ...... 29 Section 9.2. Mandatory Prepayment From Net Proceeds of Insurance or Eminent Domain ...... 29 Section 9.3. Security Deposit ...... 29

ARTICLE X MISCELLANEOUS...... 30 Section 10.1. Notices ...... 30 Section 10.2. Binding Effect ...... 30 Section 10.3. Severability ...... 30 Section 10.4. Net-net-net Lease ...... 30 Section 10.5. Further Assurances and Corrective Instruments ...... 31 Section 10.6. Waiver of Personal Liability ...... 31 Section 10.7. Execution in Counterparts ...... 31 Section 10.8. Applicable Law ...... 31 Section 10.9. Captions ...... 31 Section 10.10. Waiver of Jury Trial; Agreement for Judicial Reference ...... 31 Section 10.11. Servicing; Appointment of Servicer ...... 32

EXHIBIT A DESCRIPTION OF THE PROPERTY EXHIBIT B SCHEDULE OF LEASE PAYMENTS

ii LEASE AGREEMENT

THIS LEASE AGREEMENT (this “Lease Agreement”), dated as of July 1, 2021, is between the MUNICIPAL FINANCE CORPORATION, a corporation duly organized and existing under the laws of the State of California, as lessor (the “Corporation”), and SAN MATEO COUNTY MOSQUITO AND VECTOR CONTROL DISTRICT, a mosquito abatement and vector control district organized and existing under and by virtue of the laws of the State of California (the “District”);

WITNESSETH:

WHEREAS, pursuant to that certain Site Lease, dated as of July 1, 2021 (the “Site Lease”), the District has leased that certain real property situated in the City of Burlingame, County of San Mateo, State of California, more particularly described in Exhibit A attached hereto and made a part hereof and those certain improvements thereon (collectively, the “Property”), to the Corporation, all for the purpose of enabling the District finance the acquisition of property located at 1415 N. Carolan Avenue in the City of Burlingame, California which property consists of 0.72 acres of land and is improved with a 19,142 square feet building within the boundaries of the District; and

WHEREAS, the Corporation proposes to lease the Property back to the District pursuant to this Lease Agreement and to assign all of its rights, title and interest in, to and under this Lease Agreement, including its right to receive lease payments under this Lease Agreement (the “Lease Payments”), its right to enforce payment of the Lease Payments and otherwise to enforce its interest and rights under this Lease Agreement in the event of a default hereunder by the District and its rights under the Site Lease, to CN Financing, Inc. including its successors and assigns (the “Assignee”), pursuant to that certain Assignment Agreement, dated as of July 1, 2021, between the Corporation and the Assignee; and

WHEREAS, the District and the Corporation have agreed to enter into this Lease Agreement providing for Lease Payments with an aggregate principal component in the amount of $______for the purpose of implementing the transaction described above; and

WHEREAS, the District and the Corporation agree to mutually cooperate now and hereafter, to the extent possible, in order to sustain the intent of this Lease Agreement and the bargain of both parties hereto.

AGREEMENT:

NOW, THEREFORE, for and in consideration of the premises and the covenants hereinafter contained and for other good and valuable consideration, the parties hereto hereby formally covenant, agree and bind themselves as follows:

ARTICLE I DEFINITIONS; RULES OF INTERPRETATION

Section 1.1. Definitions. All terms defined in this Section 1.1 have the meanings herein specified for all purposes of this Lease Agreement.

1 “Additional Payments” means the amounts specified as such in Section 4.3(b) of this Lease Agreement.

“Applicable Environmental Laws” means and shall include, but shall not be limited to, the Comprehensive Environmental Response, Compensation, and Liability Act (“CERCLA”), 42 USC Sections 9601 et seq.; the Resource Conservation and Recovery Act (“RCRA”), 42 USC Sections 6901 et seq.; the Federal Water Pollution Control Act, 33 USC Sections 1251 et seq.; the Clean Air Act, 42 USC Sections 7401 et seq.; the California Hazardous Waste Control Law (“HWCL”), California Health & Safety Code Sections 25100 et seq.; the Hazardous Substance Account Act (“HSAA”), California Health & Safety Code Sections 25300 et seq.; the Porter- Cologne Water Quality Control Act (the “Porter-Cologne Act”), California Water Code Sections 1300 et seq.; the Air Resources Act, California Health & Safety Code Sections 3900 et seq.; the Safe Drinking Water & Toxic Enforcement Act, California Health & Safety Code Sections 25249.5 et seq.; and the regulations under each thereof; and any other local, state, and/or federal laws or regulations, whether currently in existence or hereafter enacted, that govern:

(a) the existence, cleanup, and/or remedy of contamination on property;

(b) the protection of the environment from spilled, deposited, or otherwise emplaced contamination;

(d) the use, generation, transport, treatment, removal, or recovery of Hazardous Substances, including building materials.

“Assignee” means (a) initially, CN Financing, Inc., as assignee of all rights, title and interests of the Corporation hereunder, and (b) any other entity to whom the rights of the Corporation hereunder are assigned, including subsequent assignees of the Assignee, as provided in Section 7.4.

“Assignment Agreement” means the Assignment Agreement, dated as of July 1, 2021, between the Corporation, as assignor of its rights under the Site Lease and this Lease Agreement, and the Assignee, as assignee, as originally executed or as thereafter amended under any duly authorized and executed amendments thereto.

“Bond Counsel” means (a) Kutak Rock LLP, or (b) any other attorney or firm of attorneys of nationally recognized expertise with respect to legal matters relating to obligations the interest on which is excludable from gross income under Section 103 of the Tax Code.

“Business Day” means a day other than a Saturday, Sunday or legal holiday, on which banking institutions are not closed in the State.

“Closing Date” means July ___, 2021.

“Corporation” means Municipal Finance Corporation, a corporation duly organized and existing under the laws of the State of California.

“Corporation Representative” means the President or the designee of any such official, or any other person authorized by resolution of the Corporation delivered to the Assignee to act on behalf of

2 the Corporation under or with respect to the Site Lease, the Lease Agreement and the Assignment Agreement.

“Costs of Issuance” means all items of expense directly or indirectly payable by or reimbursable to the District relating to the authorization and execution of the Lease Agreement, including but not limited to filing and recording fees, fees, charges and disbursements of attorneys, including counsel to the Assignee, counsel to the Corporation, accounting firms, consultants and other professionals, fees and charges for preparation, execution and safekeeping of the Lease Agreement, administrative costs of the District and the Corporation incurred in connection with the issuance of the Lease Agreement, and any other cost, charge or fee in connection with the original issuance of the Lease Agreement, including fees of the California Debt and Investment Advisory Commission.

“Default Rate” means an interest rate equal to the initial rate of 4.00%.

“Determination of Taxability” means any determination, decision or decree by the Commissioner of Internal Revenue, or any District Director of Internal Revenue, or any court of competent jurisdiction, to the effect that an Event of Taxability shall have occurred; provided, however, that the District shall have the opportunity to take such remedial action necessary to restore the tax-exempt status of the interest component of Lease Payments under the Lease Agreement. A Determination of Taxability also shall be deemed to have occurred on the date when the District files any statement, supplemental statement, or other tax schedule, return or document, which discloses that an Event of Taxability shall have occurred.

“District” means the San Mateo County Mosquito and Vector Control District, a mosquito abatement and vector control district organized and existing under and by virtue of the laws of the State of California.

“District Representative” means the President, Vice President, District Manager, Finance Director or the designee of any such official, or any other person authorized by resolution delivered to the Corporation and the Assignee to act on behalf of the District under or with respect to the Site Lease and this Lease Agreement.

“Event of Default” means any of the events of default as defined in Section 8.1.

“Event of Taxability” means, with respect to the Lease Agreement: (a) the application of the proceeds of the advance rental payment by the Corporation pursuant to the Site Lease in such manner that the Lease Agreement becomes an “arbitrage bond” within the meaning of Tax Code Sections 103(b)(2) and 148, and with the result that interest component of the Lease Payments is or becomes includable in a recipient’s gross income (as defined in Tax Code Section 61); or (b) if as the result of any act, failure to act or use of the proceeds of the advance rental payment or any misrepresentation or inaccuracy in any of the representations, warranties or covenants contained in the Lease Agreement or the Site Lease by the District the interest component of Lease Payments is or becomes includable in a recipient’s gross income (as defined in Tax Code Section 61).

“Federal Securities” means any direct general non-callable obligations of the United States of America (including obligations issued or held in book entry form on the books of the Department of the Treasury of the United States of America), or obligations the timely payment of principal of and interest on which are directly guaranteed by the United States of America.

3 “Fiscal Year” means each twelve-month period during the Term of this Lease Agreement commencing on July 1 in any calendar year and ending on June 30 in the next succeeding calendar year, or any other twelve-month period selected by the District as its fiscal year period.

“Governmental Authority” means any governmental or quasi-governmental entity, including any court, department, commission, board, bureau, agency, administration, central bank, service, district or other instrumentality of any governmental entity or other entity exercising executive, legislative, judicial, taxing, regulatory, fiscal, monetary or administrative powers or functions of or pertaining to government, or any arbitrator, mediator or other person with authority to bind a party at law.

“Gross Up Rate” means an interest rate equal to 6.00%.

“Hazardous Substance” means any substance that shall, at any time, be listed as “hazardous” or “toxic” in any Applicable Environmental Law or that has been or shall be determined at any time by any agency or court to be a hazardous or toxic substance regulated under Applicable Environmental Laws; and also means, without limitation, raw materials, building components, the products of any manufacturing, or other activities on the Property, wastes, petroleum, and source, special nuclear, or by-product material as defined by the Atomic Energy Act of 1954, as amended (42 USC Sections 3011 et seq.).

“Lease Agreement” means this Lease Agreement, dated as of July 1, 2021, between the Corporation and the District, as amended and supplemented hereafter.

“Lease Payment Date” means semi-annual payments on _____ and _____ in each year, commencing ______, and continuing to and including the date on which the Lease Payments are paid in full.

“Lease Payments” means all payments required to be paid by the District under Section 4.3, including any prepayment thereof under Section 9.1 or 9.2.

“Material Adverse Effect” means an event or occurrence which adversely affects in a material manner (a) the assets, liabilities, condition (financial or otherwise), business, facilities or operations of the District, (b) the ability of the District to carry out its business in the manner conducted as of the date of this Lease Agreement or to meet or perform its obligations under this Lease Agreement on a timely basis, (c) the validity or enforceability of this Lease Agreement, or (d) the exclusion of the interest component of the Lease Payments from gross income for federal income tax purposes or the exemption of such interest for state income tax purposes.

“Material Litigation” means any action, suit, proceeding, inquiry or investigation against the District in any court or before any arbitrator of any kind or before or by any Governmental Authority which, (i) if determined adversely to the District, may have a Material Adverse Effect, (ii) seeks to restrain or enjoin any of the transactions contemplated by this Lease Agreement, or (iii) may adversely affect (A) the exclusion of the interest component of the Lease Payments from gross income for federal income tax purposes or the exemption of such interest for state income tax purposes or (B) the ability of the District to perform its obligations under this Lease Agreement.

“Net Proceeds” means any insurance or eminent domain award (including any proceeds of sale to a governmental entity under threat of the exercise of eminent domain powers), paid with

4 respect to the Property, to the extent remaining after payment therefrom of all expenses incurred in the collection thereof.

“Permitted Encumbrances” means, as of any time: (a) liens for general ad valorem taxes and assessments, if any, not then delinquent, or which the District may permit to remain unpaid under Article VI of this Lease Agreement; (b) the Site Lease, this Lease Agreement and the Assignment Agreement; (c) any right or claim of any mechanic, laborer, materialman, supplier or vendor not filed or perfected in the manner prescribed by law; (d) the exceptions disclosed in the title insurance policy issued with respect to the Property issued as of the Closing Date; and (e) any easements, rights of way, mineral rights, drilling rights and other rights, reservations, covenants, conditions or restrictions which exist of record and which the District certifies in writing will not materially impair the use of the Property for its intended purposes.

“Property” means that certain real property more particularly described in Exhibit A to the Site Lease and in Exhibit A to the Lease Agreement.

“Rental Period” means each period during the Term of the Lease commencing on and including ______in each year and extending to and including the next succeeding ______. The first Rental Period begins on the Closing Date and ends on ______, 2021.

“Site Lease” means the Site Lease, dated as of July 1, 2021, between the District, as lessor, and the Corporation, as lessee, together with any duly authorized and executed amendments thereto.

“State” means the State of California.

“Tax Code” means the Internal Revenue Code of 1986 as in effect on the Closing Date or (except as otherwise referenced herein) as it may be amended to apply to obligations issued on the Closing Date, together with applicable proposed, temporary and final regulations promulgated, and applicable official public guidance published, under the Tax Code.

“Term of this Lease Agreement” or “Term” means the time during which this Lease Agreement is in effect, as provided in Section 4.2.

Section 1.2. Interpretation.

(a) Unless the context otherwise indicates, words expressed in the singular include the plural and vice versa and the use of the neuter, masculine, or feminine gender is for convenience only and include the neuter, masculine or feminine gender, as appropriate.

(b) Headings of articles and sections herein and the table of contents hereof are solely for convenience of reference, do not constitute a part hereof and do not affect the meaning, construction or effect hereof.

(c) All references herein to “Articles,” “Sections” and other subdivisions are to the corresponding Articles, Sections or subdivisions of this Lease Agreement; the words “herein,” “hereof,” “hereby,” “hereunder” and other words of similar import refer to this Lease Agreement as a whole and not to any particular Article, Section or subdivision hereof.

5 ARTICLE II COVENANTS, REPRESENTATIONS AND WARRANTIES

Section 2.1. Covenants, Representations and Warranties of the District. The District makes the following covenants, representations and warranties to the Corporation and the Assignee as of the date of the execution and delivery of this Lease Agreement:

(a) Due Organization and Existence. The District is a mosquito abatement and vector control district existing under and by virtue of the laws of the State, has full legal right, power and authority under the laws of the State to enter into the Site Lease and this Lease Agreement and to carry out and consummate all transactions on its part contemplated hereby and thereby, and by proper action the District has duly authorized the execution and delivery by the District of the Site Lease and this Lease Agreement.

(b) Due Execution. The representative of the District executing the Site Lease and this Lease Agreement has been fully authorized to execute the same by a resolution duly adopted by the Board of Directors of the District.

(c) Valid, Binding and Enforceable Obligations. The Site Lease and this Lease Agreement have been duly authorized, executed and delivered by the District and constitute the legal, valid and binding agreements of the District enforceable against the District in accordance with their respective terms.

(d) No Conflicts. The execution and delivery of the Site Lease and this Lease Agreement, the consummation of the transactions therein and herein contemplated and the fulfillment of or compliance with the terms and conditions thereof and hereof, do not and will not conflict with or constitute a material violation or breach of or default (with due notice or the passage of time or both) under any applicable law or administrative rule or regulation, or any applicable court or administrative decree or order, or any indenture, mortgage, deed of trust, lease, contract or other agreement or instrument to which the District is a party or by which it or its properties are otherwise subject or bound, or result in the creation or imposition of any prohibited lien, charge or encumbrance of any nature whatsoever upon any of the property or assets of the District, which conflict, violation, breach, default, lien, charge or encumbrance would have consequences that would materially and adversely affect the consummation of the transactions contemplated by the Site Lease or this Lease Agreement or the financial condition, assets, properties or operations of the District.

(e) Consents and Approvals. No consent or approval of any trustee or holder of any indebtedness of the District or of the voters of the District, and no consent, permission, authorization, order or license of, or filing or registration with, any Governmental Authority is necessary in connection with the execution and delivery of the Site Lease and this Lease Agreement, or the consummation of any transaction therein and herein contemplated, except as have been obtained or made and as are in full force and effect.

(f) No Litigation. To the best knowledge of the District, there is no action, suit, proceeding, inquiry or investigation before or by any court or federal, state, municipal or other Governmental Authority pending and notice of which has been served on the District or, to the knowledge of the District after reasonable investigation, threatened against or affecting the District or the assets, properties or operations of the District which, if determined adversely to the District or its interests, would have a Material Adverse Effect upon the consummation of the transactions

6 contemplated by or the validity of the Site Lease and this Lease Agreement or upon the financial condition, assets, properties or operations of the District, and the District is not in default with respect to any order or decree of any court or any order, regulation or demand of any federal, state, municipal or other Governmental Authority, which default might have consequences that would materially and adversely affect the consummation of the transactions contemplated by this Lease Agreement, or the financial condition, assets, properties or operations of the District.

(g) Sufficient Funds. The District reasonably believes that sufficient funds can be obtained to make all Lease Payments and all other amounts required to be paid pursuant to this Lease Agreement.

(h) No Defaults. The District has never non-appropriated or materially defaulted under any of its payment or performance obligations or covenants, either under any financing lease of the same general nature as this Lease Agreement, or under any of its bonds, notes, or other debt obligations.

(i) Fee Title. The District is the owner in fee of title to the Property. No lien or encumbrance on the Property materially impairs the District’s use of the Property for the purposes for which it is, or may reasonably be expected to be, held.

(j) Use of the Property. During the term of this Lease Agreement, the Property will be used by the District only for the purpose of performing one or more governmental or proprietary functions of the District consistent with the permissible scope of the District’s authority

(k) Change in Financial Condition. The District has experienced no material change in its financial condition since June 30, 2020.

(l) Flooding Risk. The Property is not located in a flood hazard area and has never been subject to material damage from flooding.

(m) Value of Property and Useful Life of Property. The value of the Property (insurance and/or assessed value) is not less than $______and the useful life of the Property at least extends to ______, 2036.

(n) Essential to District Operations. The Property is essential to the District’s efficient and economic operations and the lease thereof for use by the District is in the best interest of the District.

(o) Financial Statements. The statement of financial position of the District as of June 30, 2020 and the related statement of activities and statement of cash flows and changes in financial position for the year then ended and the auditors’ reports with respect thereto, copies of which have heretofore been furnished to the Assignee, are complete and correct and fairly present the financial condition, changes in financial position and results of operations of the District at such date and for such period, and were prepared in accordance with generally accepted accounting principles. Since the period of such statements, there has been no (i) change which would have a Material Adverse Effect, and (ii) no material increase in the indebtedness of the District.

(p) Compliance with Seismic Building Code Requirements. To the best knowledge of the District, and without independent investigation, the improvements on the Property

7 were built in compliance with seismic building code requirements of the State of California at the time such improvements were constructed.

(q) No Material Adverse Change. Since the most current date of the information, financial or otherwise, supplied by the District to the Assignee:

(i) There has been no change in the assets, liabilities, financial position or results of operations of the District which might reasonably be anticipated to cause a Material Adverse Effect.

(ii) The District has not incurred any obligations or liabilities which might reasonably be anticipated to cause a Material Adverse Effect.

(iii) The District has not (A) incurred any material indebtedness on, or lease obligations payable from, its general fund, other than the Lease Payments, and trade accounts payable arising in the ordinary course of the District’s business and not past due, or (B) guaranteed the indebtedness of any other person.

(r) Accuracy of Information. All information, reports and other papers and data furnished by the District to the Assignee were, at the time the same were so furnished, complete and accurate in all material respects and insofar as necessary to give the Assignee a true and accurate knowledge of the subject matter and were provided in expectation of the Assignee’s reliance thereon in entering into the transactions contemplated by this Lease Agreement. No fact is known to the District which has had or, so far as the District can now reasonably foresee, may in the future have a Material Adverse Effect, which has not been set forth in the financial statements previously furnished to the Assignee or in other such information, reports, papers and data or otherwise disclosed in writing to the Assignee prior to the Closing Date. Any financial, budget and other projections furnished to the Assignee by the District or its or their agents were prepared in good faith on the basis of the assumptions stated therein, which assumptions were fair and reasonable in light of the conditions existing at the time of delivery of such financial, budget or other projections, and represented, and as of the date of this representation, represent the District’s best estimate of its future financial performance. No document furnished nor any representation, warranty or other written statement made to the Assignee in connection with the negotiation, preparation or execution of this Lease Agreement contains or will contain any untrue statement of a material fact or omits or will omit to state (as of the date made or furnished) any material fact necessary in order to make the statements contained herein or therein, in light of the circumstances under which they were or will be made, not misleading.

(s) Hazardous Substances. The Property is free of all Hazardous Substances, and the District is in full compliance with all Applicable Environmental Laws.

(t) No Financial Advisory or Fiduciary Relationship. The District represents, warrants and covenants that: (i) the transaction contemplated herein and in the Assignment Agreement is an arm’s length commercial transaction among the District, the Corporation and the Assignee and its affiliates, (ii) in connection with such transaction, the Assignee and its affiliates are acting solely as a principal and not as an advisor including, without limitation, a “Municipal Advisor” as such term is defined in Section 15B of the Securities and Exchange Act of 1934, as amended, and the related final rules (the “Municipal Advisor Rules”), agent or a fiduciary of the District, (iii) the Assignee and its affiliates are relying on the bank exemption in the Municipal

8 Advisor Rules, (iv) the Assignee and its affiliates have not provided any advice or assumed any advisory or fiduciary responsibility in favor of the District with respect to the transaction contemplated hereby or by the Assignment Agreement and the discussions, undertakings and procedures leading thereto (whether or not the Assignee, or any affiliate of the Assignee, has provided other services or advised, or is currently providing other services or advising the District on other matters), (v) the Assignee and its affiliates have financial and other interests that differ from those of the District, and (vi) the District has consulted with their own financial, legal, accounting, tax and other advisors, as applicable, to the extent it deemed appropriate.

Section 2.2. Covenants, Representations and Warranties of the Corporation. The Corporation makes the following covenants, representations and warranties to the District and Assignee as of the date of the execution and delivery of this Lease Agreement:

(a) Due Organization and Existence. The Corporation is a corporation duly organized and existing under the laws of the State, has full legal right, power and authority to enter into the Site Lease, this Lease Agreement and the Assignment Agreement and to carry out and consummate all transactions on its part contemplated hereby and thereby, and by proper action the Corporation has duly authorized the execution and delivery by the Corporation of the Site Lease, this Lease Agreement and the Assignment Agreement.

(b) Due Execution. The representative of the Corporation executing the Site Lease, this Lease Agreement and the Assignment Agreement is fully authorized to execute the same under official action taken by the Board of Directors of the Corporation.

(c) Valid, Binding and Enforceable Obligations. The Site Lease, this Lease Agreement and the Assignment Agreement have been duly authorized, executed and delivered by the Corporation and constitute the legal, valid and binding agreements of the Corporation, enforceable against the Corporation in accordance with their respective terms.

(d) No Conflicts. The execution and delivery of the Site Lease, this Lease Agreement and the Assignment Agreement, the consummation of the transactions herein and therein contemplated and the fulfillment of or compliance with the terms and conditions hereof and thereof, do not and will not conflict with or constitute a material violation or breach of or default (with due notice or the passage of time or both) under any applicable law or administrative rule or regulation, or any applicable court or administrative decree or order, or any indenture, mortgage, deed of trust, lease, contract or other agreement or instrument to which the Corporation is a party or by which it or its properties are otherwise subject or bound, or result in the creation or imposition of any prohibited lien, charge or encumbrance of any nature whatsoever upon any of the property or assets of the Corporation, which conflict, violation, breach, default, lien, charge or encumbrance would have consequences that would materially and adversely affect the consummation of the transactions contemplated by the Site Lease, this Lease Agreement and the Assignment Agreement or the financial condition, assets, properties or operations of the Corporation.

(e) Consents and Approvals. No consent or approval of any trustee or holder of any indebtedness of the Corporation, and no consent, permission, authorization, order or license of, or filing or registration with, any Governmental Authority is necessary in connection with the execution and delivery of the Site Lease, this Lease Agreement or the Assignment Agreement, or the consummation of any transaction herein or therein contemplated, except as have been obtained or made and as are in full force and effect.

9 (f) No Litigation. To the best knowledge of the Corporation, there is no action, suit, proceeding, inquiry or investigation before or by any court or federal, state, municipal or other Governmental Authority pending and notice of which has been served on the Corporation or, to the knowledge of the Corporation after reasonable investigation, threatened against or affecting the Corporation or the assets, properties or operations of the Corporation which, if determined adversely to the Corporation or its interests, would have a material and adverse effect upon the consummation of the transactions contemplated by or the validity of the Site Lease, this Lease Agreement or the Assignment Agreement, or upon the financial condition, assets, properties or operations of the Corporation, and the Corporation is not in default with respect to any order or decree of any court or any order, regulation or demand of any federal, state, municipal or other Governmental Authority, which default might have consequences that would materially and adversely affect the consummation of the transactions contemplated by the Site Lease, this Lease Agreement or the Assignment Agreement or the financial condition, assets, properties or operations of the Corporation.

(g) Continued Existence of the Corporation. The Corporation will take or cause to be taken all actions reasonably necessary to continue its existence until such time as the Lease Payments have been paid in full.

(h) Municipal Advisor Rules. The Corporation is not acting as an advisor to the District, including, without limitation, as a “Municipal Advisor” as such term is defined in the Municipal Advisor Rules, or an agent or a fiduciary of the District and the Corporation has not provided any advice or assumed any advisory or fiduciary responsibility in favor of the District with respect to the transaction contemplated hereby or by the Site Lease and the discussions, undertakings and procedures leading thereto.

ARTICLE III DEPOSIT AND APPLICATION OF FUNDS

Section 3.1. Deposit of and Application of Funds. The amount of $______shall be derived from amounts paid by the Assignee under the Assignment Agreement. On the Closing Date, the Assignee shall cause the amount of $_____ to be transferred to the District. In addition, a portion of the amounts paid by the Assignee under the Assignment Agreement (net of amounts retained by the Assignee for its fees) shall be applied by the Assignee to pay financing costs of the transaction in the amount of $25,000. Any financing costs in excess of $25,000 shall be paid by the District.

ARTICLE IV LEASE OF PROPERTY; LEASE PAYMENTS

Section 4.1. Lease of Property by the Corporation Back to the District.

(a) The Corporation hereby leases the Property to the District, and the District hereby leases the Property from the Corporation, upon the terms and conditions set forth in this Lease Agreement.

(b) The leasing of the Property by the District to the Corporation pursuant to the Site Lease shall not affect or result in a merger of the District’s leasehold estate pursuant to this Lease Agreement and its fee estate as lessor under the Site Lease. This Lease Agreement shall constitute a sublease with respect to the Property. The leasehold interest in the Property granted by the District to the Corporation pursuant to the Site Lease is and shall be independent of this Lease

10 Agreement; this Lease Agreement shall not be an assignment or surrender of the leasehold interest in the Property granted to the Corporation under the Site Lease.

Section 4.2. Term. The Term of this Lease Agreement commences on the Closing Date and ends on ______, 2036, or the date on which all of the Lease Payments have been paid in full. If on ______, 2036, the Lease Payments payable hereunder shall have been abated at any time and for any reason and not otherwise paid from rental interruption insurance or other sources, or the District shall have defaulted in its payment of Lease Payments hereunder or any Event of Default has occurred and continues without cure by the District, then the term of this Lease Agreement shall be extended for the actual period of abatement or for so long as the default remains uncured, as necessary to accommodate the final payment of all Lease Payments due hereunder, not to exceed ten (10) years. The provisions of this Section 4.2 are subject to the provisions of Section 6.1 relating to the taking in eminent domain of the Property or any portion thereof.

Section 4.3. Lease Payments.

(a) Obligation to Pay. Subject to the provisions of Sections 6.1 and 6.3 and the provisions of Article IX, the District agrees to pay to the Corporation, its successors and assigns, the Lease Payments (denominated into components of principal and interest) in the amounts specified in Exhibit B attached hereto (including any supplements thereto) and by this reference incorporated herein, to be due and payable in immediately available funds on each of the respective Lease Payment Dates specified in Exhibit B. The Lease Payments payable in any Rental Period with respect to the Property shall be for the use of the Property during such Rental Period. The interest component of the portion of the Lease Payments has been calculated based on a tax-exempt interest rate of 2.50% per annum, on the basis of a 360-day year of twelve 30-day months. In the event the District does not make any Lease Payment by the applicable Lease Payment Date, the interest component of the portion of the Lease Payment shall be calculated based on the Default Rate.

(b) Additional Payments. In addition to the Lease Payments set forth herein, the District agrees to pay as Additional Payments all of the following:

(i) all taxes and assessments of any nature whatsoever, including but not limited to excise taxes, ad valorem taxes, ad valorem and specific lien special assessments and gross receipts taxes, if any, levied upon the Property or upon any interest of the Corporation therein or in this Lease Agreement; provided, however, the District may, at the District’s expense and in its name, in good faith contest any such taxes and assessments and, in the event of such contest, may permit such taxes and assessments to remain unpaid during the period of such contest and appeal therefrom unless the Corporation shall notify the District that, in the opinion of Bond Counsel, by nonpayment of any such items, the interest of the Corporation in the Property will be materially endangered or the Property, or any portion thereof, will be subject to loss or forfeiture, in which event the District shall promptly pay such taxes and assessments or provide the Corporation with full security against any loss which may result from nonpayment, in form satisfactory to the Corporation;

(ii) insurance premiums, if any, on all insurance required under the provisions of Article V hereof;

(iii) any other reasonable fees, costs or expenses incurred by the Corporation in connection with the execution, performance or enforcement of this Lease

11 Agreement or any of the transactions contemplated hereby or related to the Property, including, without limitation, any amounts which may become due; provided, however, the District shall not be responsible for any costs incurred by the Corporation associated with any assignment made by the Assignee;

(iv) any amounts required to be paid as rebate to the United States pursuant to the Tax Certificate; and

(v) upon the occurrence of a Determination of Taxability with respect to this Lease Agreement, the District shall, with respect to future Lease Payments, make Additional Payments resulting from the application of the Gross Up Rate thereto directly to the Corporation equal to the difference between the interest component of the Lease Payments calculated at the interest rate provided in this Lease Agreement and the interest component of the Lease Payments calculated at the Gross Up Rate; provided, however, in no event shall the total of the Lease Payments and the aggregate Additional Payments under this Section 4.3(b)(v) for any Fiscal Year exceed the annual fair rental value of the Property. In addition, the District shall make immediately upon demand of the Corporation an Additional Payment to the Corporation sufficient to indemnify the Corporation for any prior Lease Payments determined to be taxable as a consequence of a Determination of Taxability such that the taxable prior Lease Payments will be calculated at the Gross Up Rate instead of the interest rate set forth in this Lease Agreement; provided, however, in no event shall the total of the Lease Payments and the aggregate Additional Payments under this Section 4.3(b)(v) for any Fiscal Year exceed the annual fair rental value of the Property. To the extent that all such Additional Payments have not been paid to the Corporation at the end of the term of the Lease Agreement, the Term shall be extended in accordance with Section 4.2 hereof.

Amounts constituting Additional Payments payable hereunder shall be paid by the District directly to the person or persons to whom such amounts shall be payable. The District shall pay all such amounts when due or at such later time as such amounts may be paid without penalty or, in any other case, within 30 days after notice in writing from the Corporation to the District stating the amount of Additional Payments then due and payable and the purpose thereof.

(c) Effect of Prepayment. If the District prepays all Lease Payments in full under Section 9.1 or 9.2, the District’s obligations under this Section will thereupon cease and terminate. If the District prepays the Lease Payments in part but not in whole under Section 9.1 or 9.3, the principal components of the remaining Lease Payments will be reduced on a pro rata basis; and the interest component of each remaining Lease Payment will be reduced on a pro rata basis.

(d) Rate on Overdue Payments. If the District fails to make any of the payments required in this Section 4.3, the payment in default will continue as an obligation of the District until the amount in default has been fully paid, and the District agrees to pay the same with interest thereon, from the date of default to the date of payment at the Default Rate per annum.

(e) Fair Rental Value. The Lease Payments coming due and payable during each Rental Period constitute the total rental for the Property for such Rental Period, and will be paid by the District in each Rental Period for and in consideration of the right of the use and occupancy of, and the continued quiet use and enjoyment of the Property during each Rental Period. The parties hereto have agreed and determined that the total Lease Payments due during each Rental Period are not in excess of the fair rental value of the Property during such Rental Periods. In making this

12 determination, consideration has been given to the estimated fair market value of the Property, the estimated replacement cost of the Property, the uses and purposes which may be served by the Property and the benefits therefrom which will accrue to the District and the general public.

(f) Source of Payments; Budget and Appropriation. The Lease Payments and Additional Payments are payable from any source of legally available funds of the District, subject to the provisions of Sections 6.1 and 6.3. The District covenants to take such action as may be necessary to include all Lease Payments and Additional Payments in each of its annual budgets during the Term of this Lease Agreement and to make the necessary annual appropriations for all such Lease Payments and Additional Payments. The covenants on the part of the District herein contained constitute duties imposed by law and it is the duty of officials of the District vested with the authority to execute the terms of this Lease Agreement to take such action and do such things as are required by law in the performance of the official duty of such officials to enable the District to carry out and perform the covenants and agreements in this Lease Agreement agreed to be carried out and performed by the District.

(g) Allocation of Lease Payments. All Lease Payments received shall be applied first to the interest components of the Lease Payments due hereunder, then to the principal components of the Lease Payments due hereunder, but no such application of any payments that are less than the total rental due and owing shall be deemed a waiver of any default hereunder.

(h) No Offsets. Notwithstanding any dispute between the Corporation, or Assignee as the Corporation’s assignee, and the District, the District shall make all Lease Payments when due without deduction or offset of any kind and shall not withhold any Lease Payments pending the final resolution of such dispute.

(i) Assignment Agreement. The District understands and agrees that all Lease Payments have been assigned by the Corporation to the Assignee under the Assignment Agreement executed concurrently herewith, and the District hereby consents to such assignment. The Corporation hereby directs the District, and the District hereby agrees, to pay to the Assignee (or to its assignees as directed pursuant to Section 7.4 hereof) all payments payable by the District under this Section 4.3 and all amounts payable by the District under Article IX. Lease Payments shall be paid to the Assignee in accordance with wire instructions provided by the Assignee from time to time.

Section 4.4. Quiet Enjoyment. Throughout the Term of this Lease Agreement, the Corporation will provide the District with quiet use and enjoyment of the Property and the District will peaceably and quietly have and hold and enjoy the Property, without suit, trouble or hindrance from the Corporation, except as expressly set forth in this Lease Agreement. The Corporation will, at the request of the District and at the District’s cost, join in any legal action in which the District asserts its right to such possession and enjoyment to the extent the Corporation may lawfully do so. Notwithstanding the foregoing, the Corporation and the Assignee have the right to inspect the Property as provided in Sections 5.13(c) and 7.2.

Section 4.5. Title. At all times during the Term of this Lease Agreement, the District shall hold title to the Property, including all additions which comprise fixtures, repairs, replacements or modifications thereto, subject to Permitted Encumbrances and subject to the provisions of Section 7.2.

13 Upon the termination of this Lease Agreement (other than under Section 8.2(b) hereof), all right, title and interest of the Corporation in and to the Property shall be transferred to and vested in the District. Upon the payment in full of all Lease Payments allocable to the Property, or upon the deposit by the District of security for such Lease Payments as provided in Section 9.3, all right, title and interest of the Corporation in and to the Property shall be transferred to and vested in the District. The Corporation agrees to take any and all steps and execute and record any and all documents reasonably required by the District to consummate any such transfer.

Section 4.6. Release of Excess Property. The District may, at any time and from time to time, release any portion of the Property (the “Released Property”) from the Lease, with the prior written consent of the Assignee, which consent shall be at the Assignee’s sole discretion, and upon satisfaction of all of the following requirements which are conditions precedent to such release:

(a) The District shall certify to the Corporation and the Assignee that no Event of Default has occurred and is continuing, and no event giving rise to an abatement of Lease Payments under Section 6.3 has occurred or is continuing with respect to the Property to be remaining following release of the Released Property;

(b) The District shall file with the Corporation and the Assignee, and cause to be recorded in the office of the San Mateo County Recorder, an amendment to this Lease Agreement which deletes the Released Property from the description of the Property;

(c) The District shall file with the Corporation and the Assignee a written certificate of the District stating the District’s determination that the estimated value of the real property which will remain leased under this Lease Agreement following such release is at least equal to the original principal components of the Lease Payments and upon request of the Assignee, the District shall provide to the Assignee additional information and documents to evidence the value of the remaining portion of the Property;

(d) The District shall file with the Corporation and the Assignee a written certificate of the District stating the District’s determination that the estimated fair rental value, for each remaining Rental Period and in the aggregate, of the Property remaining after release of the Released Property is at least equal to the remaining Lease Payments for each remaining Rental Period and in the aggregate;

(e) The District shall furnish the Corporation and the Assignee with a written opinion of Bond Counsel stating that the release of the Released Property does not cause the interest components of the Lease Payments to become includable in gross income for purposes of federal income taxation or to become subject to personal income taxation by the State; and

(f) The District shall file with the Corporation and the Assignee such other information, documents and instruments as the Corporation or the Assignee shall reasonably request, including (if requested by the Assignee) evidence of the insurable value of the Property to be remaining following release of the Released Property, indicating that such value is in excess of the then unpaid principal component of the Lease Payments and such endorsements to the title policy delivered on the Closing Date.

Upon the satisfaction of all such conditions precedent, the Term of this Lease Agreement will thereupon end as to the Released Property. The District is not entitled to any reduction, diminution,

14 extension or other modification of the Lease Payments whatsoever as a result of such release. The Corporation and the District shall execute, deliver and cause to be recorded all documents required to discharge this Lease Agreement of record against the Released Property.

Section 4.7. Substitution of Property. (a) In the event of damage or destruction of the Property due to earthquake or other uninsured casualty for which rental interruption insurance is not available or in the event that following the condemnation of all or a portion of the Property the fair rental value of the Property remaining after such condemnation is less than the remaining Lease Payments due under this Lease Agreement, the District shall substitute under the Site Lease and this Lease Agreement one or more parcels of unimpaired and unencumbered real property, the fair rental value of which, for each remaining Rental Period and in the aggregate, shall be at least equal to the remaining unpaid principal components of the Lease Payments hereunder.

(b) If for any reason the District is unable to so substitute real property for the Property with a fair rental value at least equal to the remaining unpaid principal components of the Lease Payments hereunder, the District shall use its best efforts to obtain other financing in an amount necessary to prepay the principal component of the Lease Payments not supported by the fair rental value of the substituted property, if any.

(c) The District, with Assignee’s prior written consent, which consent shall be at the Assignee’s sole discretion, has the option at any time and from time to time, to substitute other real property (the “Substitute Property”) for the Property or any portion thereof (the “Former Property”), upon satisfaction of all of the following requirements which are hereby declared to be conditions precedent to such substitution:

(i) No Event of Default has occurred and is continuing.

(ii) The District has filed with the Corporation and the Assignee and caused to be recorded in the office of the San Mateo County Recorder sufficient memorialization of an amendment hereof which adds the legal description of the Substitute Property to Exhibit A and deletes therefrom the legal description of the Former Property.

(iii) The District has obtained a CLTA or ALTA policy of title insurance insuring the District’s leasehold estate hereunder in the Substitute Property, subject only to Permitted Encumbrances, in an amount at least equal to the remaining Lease Payments.

(iv) The District has certified in writing to the Corporation and the Assignee that the Substitute Property serves the public purposes of the District and constitutes property which the District is permitted to lease under the laws of the State of California, and has been determined to be essential to the proper, efficient and economic operation of the District and to serve an essential governmental function of the District.

(v) The Substitute Property does not cause the District to violate any of its covenants, representations and warranties made herein.

(vi) The District has filed with the Corporation and the Assignee a written certificate of the District or other written evidence stating that (i) the value of the Property after such substitution is at least equal to the remaining unpaid principal components of the Lease Payments, (ii) the fair rental of the Property after such substitution is at least equal to

15 the Lease Payments thereafter coming due and payable, and (iii) the useful life of the Substitute Property at least extends to ______, 2036.

(vii) The District shall furnish the Corporation and the Assignee with a written opinion of Bond Counsel stating that the Substitute Property does not cause the interest components of the Lease Payments to become includable in gross income for purposes of federal income taxation or to become subject to personal income taxation by the State.

Upon the satisfaction of all such conditions precedent, the Term of this Lease Agreement will thereupon end as to the Former Property and commence as to the Substitute Property, and all references to the Former Property will apply with full force and effect to the Substitute Property. The District is not entitled to any reduction, diminution, extension or other modification of the Lease Payments whatsoever as a result of any substitution of property under this Section. The Corporation and the District will execute, deliver and cause to be recorded all documents required to discharge the Site Lease, this Lease Agreement and the Assignment Agreement of record against the Former Property and to cause the Substitute Property to become subject to all of the terms and conditions of the Site Lease, this Lease Agreement and the Assignment Agreement.

ARTICLE V MAINTENANCE; TAXES; INSURANCE; AND OTHER MATTERS

Section 5.1. Maintenance, Utilities, Taxes and Assessments. Throughout the Term of this Lease Agreement, as part of the consideration for the rental of the Property, all improvement, repair and maintenance of the Property are the sole responsibility of the District and the District will maintain the Property in good condition. The District will pay for or otherwise arrange for the payment of all utility services supplied to the Property, which may include, without limitation, janitor service, security, power, gas, telephone, light, heating, water and all other utility services, and shall pay for or otherwise arrange for the payment of the cost of the repair and replacement of the Property resulting from ordinary wear and tear or want of care on the part of the District or any assignee or sublessee thereof. In exchange for the Lease Payments herein provided, the Corporation agrees to provide only the Property, as hereinbefore more specifically set forth. The District waives the benefits of subsections 1 and 2 of Section 1932, Section 1933(4) and Sections 1941 and 1942 of the California Civil Code, but such waiver does not limit any of the rights of the District under the terms of this Lease Agreement.

The District will pay or cause to be paid all taxes and assessments of any type or nature, if any, charged to the Corporation or the District affecting the Property or the respective interests or estates therein; provided that with respect to special assessments or other governmental charges that may lawfully be paid in installments over a period of years, the District is obligated to pay only such installments as are required to be paid during the Term of this Lease Agreement as and when the same become due.

The District may, at the District’s expense and in its name, in good faith contest any such taxes, assessments, utility and other charges and, in the event of any such contest, may permit the taxes, assessments or other charges so contested to remain unpaid during the period of such contest and any appeal therefrom unless the Corporation shall notify the District that, in its reasonable opinion, by nonpayment of any such items the interest of the Corporation in the Property will be materially endangered or the Property or any part thereof will be subject to loss or forfeiture, in

16 which event the District will promptly pay such taxes, assessments or charges or provide the Corporation with full security against any loss which may result from nonpayment, in form satisfactory to the Corporation. The District shall promptly notify the Assignee of any tax, assessment, utility or other charge it elects to contest.

Section 5.2. Modification of Property. The District has the right, at its own expense, to make additions, modifications and improvements to the Property or any portion thereof. All additions, modifications and improvements to the Property will thereafter comprise part of the Property and become subject to the provisions of this Lease Agreement. Such additions, modifications and improvements may not in any way damage the Property, prevent the District’s beneficial use of the property, or cause the Property to be used for purposes other than those authorized under the provisions of state and federal law; and the Property, upon completion of any additions, modifications and improvements made thereto under this Section, must be of a value which is not substantially less than the value thereof immediately prior to the making of such additions, modifications and improvements.

Section 5.3. Commercial General Liability Insurance. The District shall maintain or cause to be maintained throughout the Term of this Lease Agreement a standard commercial general liability insurance policy or policies in protection of the District, the Assignee and their respective members, officers, agents, employees and assigns, and shall name the Assignee as an additional insured. Said policy or policies shall provide for indemnification of said parties against direct or contingent loss or liability for damages for bodily and personal injury, death or property damage occasioned by reason of the operation of the Property. Such policy or policies must provide coverage with limits and subject to such deductibles as the District shall deem adequate and prudent, and in all events in form and amount (including any deductibles) satisfactory to the Assignee. Such insurance may be maintained as part of or in conjunction with any other insurance coverage carried by the District (including, with Assignee’s prior written consent, a self-insurance program), and may be maintained in whole or in part in the form of the participation by the District in a joint powers authority or other program providing pooled insurance. The District will apply the proceeds of such liability insurance toward extinguishment or satisfaction of the liability with respect to which such proceeds have been paid.

Section 5.4. Casualty Insurance. The District will procure and maintain, or cause to be procured and maintained, throughout the Term of this Lease Agreement, casualty insurance against loss or damage to all buildings situated on the Property and owned by the District, in an amount at least equal to the greater of the replacement value of the insured buildings and the aggregate principal amount of the Lease Payments outstanding, with a lender’s loss payable endorsement in favor of the Assignee. Such insurance must, as nearly as practicable, cover loss or damage by all “special form” perils. Earthquake insurance shall only be carried if available from reputable insurers at a reasonable cost as determined by the District Manager of the District. Such insurance may be maintained as part of or in conjunction with any other insurance coverage carried by the District (including, with the Assignee’s prior written consent, a self-insurance program), and may be maintained in whole or in part in the form of the participation by the District in a joint powers authority or other program providing pooled insurance. The District will apply the Net Proceeds of such insurance as provided in Section 6.2.

Section 5.5. Rental Interruption Insurance. The District will procure and maintain, or cause to be procured and maintained, throughout the Term of this Lease Agreement, rental interruption or use and occupancy insurance to cover loss, total or partial, of the use of the Property

17 and the improvements situated thereon as a result of any of the hazards covered in the insurance required by Section 5.4, in an amount at least equal to the maximum Lease Payments coming due and payable during any future 24 month period. Such insurance may be maintained as part of or in conjunction with any other insurance coverage carried by the District and may be maintained in whole or in part in the form of the participation by the District in a joint powers authority or other program providing pooled insurance; provided that such rental interruption insurance shall not be self-insured by the District. The District will apply the Net Proceeds of such insurance towards the payment of the Lease Payments allocable to the insured improvements as the same become due and payable.

Section 5.6. Worker’s Compensation Insurance. If required by applicable California law, the District shall carry worker’s compensation insurance covering all employees on, in, near or about the Property and, upon request, shall furnish to the Corporation certificates evidencing such coverage throughout the Term of this Lease Agreement. Such insurance may be maintained as part of or in conjunction with any other insurance coverage carried by the District (including a self-insurance program) and may be maintained in whole or in part in the form of the participation by the District in a joint powers authority or other program providing pooled insurance.

Section 5.7. Recordation Hereof; Title Insurance. On or before the Closing Date, the District shall, at its expense, (a) cause this Lease Agreement, the Site Lease and the Assignment Agreement, or a memorandum hereof or thereof in form and substance approved by Bond Counsel, to be recorded in the office of the San Mateo County Recorder with respect to the Property, and (b) obtain a CLTA or ALTA title insurance policy insuring the Assignee’s interests in the leasehold estate established under the Site Lease and hereunder in the Property, subject only to Permitted Encumbrances, in an amount equal to the original principal components of the Lease Payments. The District will apply the Net Proceeds of such insurance as provided in Section 6.2.

Section 5.8. Insurance Net Proceeds; Form of Policies. All insurance policies (or riders) required by this Article V and provided by third party insurance carriers shall be taken out and maintained with responsible insurance companies organized under the laws of one of the states of the United States and qualified to do business in the State, and shall contain a provision that the insurer shall not cancel or revise coverage thereunder without giving written notice to the insured parties at least ten days before the cancellation or revision becomes effective. Each insurance policy or rider required by Sections 5.3, 5.4 and 5.5 and provided by third party insurance carriers shall name the District and the Assignee as insured parties and the Assignee as loss payee and shall include a lender’s loss payable endorsement for the benefit of the Assignee. In the case of coverage pursuant to Section 5.3, the Corporation and the Assignee shall be added as additional insureds. Prior to the Closing Date, the District will deposit with the Assignee policies (and riders and endorsements, if applicable) evidencing any such insurance procured by it, or a certificate or certificates of the respective insurers stating that such insurance is in full force and effect. Before the expiration of any such policy (or rider), the District will furnish to the Assignee evidence that the policy has been renewed or replaced by another policy conforming to the provisions of this Article V unless such insurance is no longer obtainable, in which event the District shall notify the Assignee of such fact.

Section 5.9. Installation of District’s Personal Property. The District may at any time and from time to time, in its sole discretion and at its own expense, install or permit to be installed other items of equipment or other personal property in or upon the Property. All such items shall remain the sole property of the District, in which the Corporation has no interest, and may be modified or removed by the District at any time. The District must repair and restore any and all damage to the

18 Property resulting from the installation, modification or removal of any such items. Nothing in this Lease Agreement prevents the District from purchasing or leasing items to be installed under this Section under a lease or conditional sale agreement, or subject to a vendor’s lien or security agreement, as security for the unpaid portion of the purchase price thereof, provided that no such lien or security interest may attach to any part of the Property.

Section 5.10. Liens. The District will not, directly or indirectly, create, incur, assume or suffer to exist any mortgage, pledge, lien, charge, encumbrance or claim on or with respect to the Property, other than as herein contemplated and except for such encumbrances as the District certifies in writing to the Assignee do not materially and adversely affect the leasehold estate in the Property hereunder and for which the Assignee provides its prior written approval, which approval shall be at Assignee’s sole discretion. Except as expressly provided in this Article V, the District will promptly, at its own expense, take such action as may be necessary to duly discharge or remove any such mortgage, pledge, lien, charge, encumbrance or claim, for which it is responsible, if the same shall arise at any time. The District will reimburse the Assignee for any expense incurred by it in order to discharge or remove any such mortgage, pledge, lien, charge, encumbrance or claim.

Section 5.11. Advances. If the District fails to perform any of its obligations under this Article V, the Corporation may take such action as may be necessary to cure such failure, including the advancement of money, and the District shall be obligated to repay all such advances as additional rental hereunder, with interest at the rate set forth in Section 4.3(d).

Section 5.12. District Consent to Assignment Agreement. The Corporation’s rights under this Lease Agreement (excluding the right to receive notices, the right to reimbursement of costs and to indemnification), including the right to receive and enforce payment of the Lease Payments, and the Site Lease, are being assigned to the Assignee pursuant to the Assignment Agreement. The District hereby consents to such assignment and to any additional assignment of such rights by the Assignee or its assignees. The District agrees to execute all documents, including notices of assignment and chattel mortgages or financing statements, which may be reasonably requested by the Assignee or its assignees to protect their interests in the Property and in this Lease Agreement.

Section 5.13. Environmental Covenants.

(a) Compliance with Laws; No Hazardous Substances. The District will comply with all Applicable Environmental Laws with respect to the Property and will not use, store, generate, treat, transport, or dispose of any Hazardous Substance thereon or in a manner that would cause any Hazardous Substance to later flow, migrate, leak, leach, or otherwise come to rest on or in the Property.

(b) Notification of Assignee. The District will transmit copies of all notices, orders, or statements received from any governmental entity concerning violations or asserted violations of Applicable Environmental Laws with respect to the Property and any operations conducted thereon or any conditions existing thereon to the Assignee, and the District will notify the Assignee in writing immediately of any release, discharge, spill, or deposit of any Hazardous Substance that has occurred or is occurring that in any way affects or threatens to affect the Property, or the people, structures, or other property thereon, provided that no such notification shall create any liability or obligation on the part of the Assignee.

19 (c) Access for Inspection. The District will permit the Assignee, its agents, or any experts designated by the Assignee to have full access to the Property during reasonable business hours for purposes of such independent investigation of compliance with all Applicable Environmental Laws, provided that the Assignee has no obligation to do so, or any liability for any failure to do so, or any liability should it do so.

ARTICLE VI EMINENT DOMAIN; USE OF NET PROCEEDS

Section 6.1. Eminent Domain. If all of the Property shall be taken permanently under the power of eminent domain or sold to a governmental entity threatening to exercise the power of eminent domain, the Term of this Lease Agreement shall cease as of the day possession shall be so taken. If less than all of the Property shall be taken permanently, or if all of the Property or any part thereof shall be taken temporarily under the power of eminent domain, (1) this Lease Agreement shall continue in full force and effect and shall not be terminated by virtue of such taking and the parties waive the benefit of any law to the contrary, and (2) there shall be a partial abatement of Lease Payments in an amount equal to the application of the Net Proceeds of any eminent domain award to the prepayment of the Lease Payments hereunder, in an amount to be agreed upon by the District and the Assignee such that the resulting Lease Payments represent fair consideration for the use and occupancy of the remaining usable portion of the Property.

Section 6.2. Application of Net Proceeds.

(a) From Insurance Award.

(i) Any Net Proceeds of insurance against damage to or destruction of any part of the Property collected by the District in the event of any such damage or destruction shall be deposited by the District promptly upon receipt thereof in a special fund with the Assignee designated as the “Insurance and Condemnation Fund.”

(ii) Within ninety (90) days following the date of such deposit, the District shall determine and notify the Corporation and the Assignee in writing of its determination either (A) that the replacement, repair, restoration, modification or improvement of the Property is not economically feasible or in the best interest of the District and the Net Proceeds, together with other moneys available therefor, are sufficient to cause the prepayment of the principal components of all unpaid Lease Payments pursuant to Section 9.2 hereof, or (B) that all or a portion of such Net Proceeds are to be applied to the prompt replacement, repair, restoration, modification or improvement of the damaged or destroyed portions of the Property and the fair rental value of the Property following such repair, restoration, replacement, modification or improvement will at least equal the unpaid principal component of the Lease Payments.

(iii) In the event the District’s determination is as set forth in clause (A) of subparagraph (ii) above, such Net Proceeds shall be promptly applied to the prepayment of the unpaid principal component of the Lease Payments and other amounts pursuant to Section 9.2 of this Lease Agreement; provided, however, that in the event of damage or destruction of the Property in full, such Net Proceeds may be so applied only if sufficient, together with other moneys available therefor, to cause the prepayment of the principal components of all unpaid Lease Payments, all accrued and unpaid interest, and all other costs

20 related to such prepayments pursuant to Section 9.2 of this Lease Agreement and otherwise such Net Proceeds shall be applied to the prompt replacement, repair, restoration, modification or improvement of the Property; provided further, however, that in the event of damage or destruction of the Property in part, such Net Proceeds may be applied to the prepayment of the unpaid principal component of the Lease Payments only if the resulting Lease Payments following such prepayment from Net Proceeds represent fair consideration for the remaining portions of the Property and otherwise such Net Proceeds shall be applied to the prompt replacement, repair, restoration, modification or improvement of the Property, evidenced by a certificate signed by a District Representative.

(iv) In the event the District’s determination is as set forth in clause (B) of subparagraph (ii) above, such Net Proceeds shall be applied to the prompt replacement, repair, restoration, modification or improvement of the damaged or destroyed portions of the Property by the District, and until the Property has been restored to its prior condition, the District shall not place any lien or encumbrance on the Property that is senior to this Lease Agreement without the prior written consent of the Assignee, at its sole discretion.

(b) From Eminent Domain Award. If all or any part of the Property shall be taken by eminent domain proceedings (or sold to a government threatening to exercise the power of eminent domain) the Net Proceeds therefrom shall be deposited by the District in the Insurance and Condemnation Fund and shall be applied and disbursed as follows:

(i) If the District has given written notice to the Corporation and the Assignee of its determination that (A) such eminent domain proceedings have not materially affected the operation of the Property or the ability of the District to meet any of its obligations with respect to the Property under this Lease Agreement, and (B) such proceeds are not needed for repair or rehabilitation of the Property, the District shall so certify to the Corporation and the Assignee, and the District shall credit such proceeds towards the prepayment of the Lease Payments pursuant to Section 9.2 of this Lease Agreement.

(ii) If the District has given written notice to the Corporation and the Assignee of its determination that (A) such eminent domain proceedings have not materially affected the operation of the Property or the ability of the District to meet any of its obligations with respect to the Property under this Lease Agreement, and (B) such proceeds are needed for repair, rehabilitation or replacement of the Property, the District shall so certify to the Corporation and the Assignee, and the District shall apply such amounts for such repair or rehabilitation.

(iii) If (A) less than all of the Property shall have been taken in such eminent domain proceedings or sold to a government threatening the use of eminent domain powers, and if the District has given written notice to the Corporation and the Assignee of its determination that such eminent domain proceedings have materially affected the operation of the Property or the ability of the District to meet any of its obligations with respect to the Property under the Lease Agreement or (B) all of the Property shall have been taken in such eminent domain proceedings, then the District shall credit such proceeds towards the prepayment of the Lease Payments pursuant to Section 9.2 of this Lease Agreement.

(iv) In making any determination under this Section 6.2(b), the District may, but shall not be required to, obtain at its expense, the report of an independent engineer

21 or other independent professional consultant, a copy of which shall be filed with the Corporation and the Assignee. Any such determination by the District shall be final.

(c) From Title Insurance. The Net Proceeds from a title insurance award shall be deposited by the District in the Insurance and Condemnation Fund and credited towards the prepayment of Lease Payments required to be paid pursuant to Section 9.2 of this Lease Agreement.

Section 6.3. Abatement of Lease Payments in the Event of Damage or Destruction. Lease Payments shall be abated during any period in which, by reason of damage or destruction, there is substantial interference with the use and occupancy by the District of the Property or any portion thereof to the extent to be agreed upon by the District and the Assignee. The parties agree that the amounts of the Lease Payments under such circumstances shall not be less than the amounts of the unpaid Lease Payments as are then set forth in Exhibit B, unless such unpaid amounts are determined to be greater than the fair rental value of the portions of the Property not damaged or destroyed, based upon an appropriate method of valuation, in which event the Lease Payments shall be abated such that they represent said fair rental value. Such abatement shall continue for the period commencing with such damage or destruction and ending with the substantial completion of the work of repair or reconstruction as evidenced by a Certificate of a District Representative to the Corporation and the Assignee. In the event of any such damage or destruction, this Lease Agreement shall continue in full force and effect and the District waives any right to terminate this Lease Agreement by virtue of any such damage and destruction. Notwithstanding the foregoing, there shall be no abatement of Lease Payments under this Section 6.3 to the extent that (a) the proceeds of rental interruption insurance, or (b) amounts in the Insurance and Condemnation Fund are available to pay Lease Payments which would otherwise be abated under this Section 6.3, it being hereby declared that such proceeds and amounts constitute special funds for the payment of the Lease Payments.

ARTICLE VII OTHER COVENANTS OF THE DISTRICT

Section 7.1. Disclaimer of Warranties. THE CORPORATION MAKES NO AGREEMENT, WARRANTY OR REPRESENTATION, EITHER EXPRESS OR IMPLIED, AS TO THE VALUE, DESIGN, CONDITION, MERCHANTABILITY OR FITNESS FOR ANY PARTICULAR PURPOSE OR FITNESS FOR THE USE CONTEMPLATED BY THE DISTRICT OF THE PROPERTY OR ANY PORTION THEREOF, OR ANY OTHER REPRESENTATION OR WARRANTY WITH RESPECT TO THE PROPERTY OR ANY PORTION THEREOF. THE DISTRICT ACKNOWLEDGES THAT THE DISTRICT LEASES THE PROPERTY AS-IS, IT BEING AGREED THAT ALL OF THE AFOREMENTIONED RISKS ARE TO BE BORNE BY THE DISTRICT. In no event is the Corporation liable for incidental, indirect, special or consequential damages, in connection with or arising out of this Lease Agreement for the existence, furnishing, functioning or use of the Property by the District.

Section 7.2. Access to the Property; Grant and Conveyance of Right of Entry. The District agrees that the Corporation, and the Corporation’s successors or assigns, has the right at all reasonable times, following at least 48 hours written notice provided to the District, to enter upon and to examine and inspect (to the extent permitted by law and public policy) the Property or any part thereof. The District further agrees that the Corporation, and the Corporation’s successors or assigns shall have such rights of access to the Property or any component thereof, following at least 48 hours written notice provided to the District, as may be reasonably necessary to cause the proper

22 maintenance of the Property if the District fails to perform its obligations hereunder. Neither the Corporation nor any of its assigns has any obligation to cause such proper maintenance.

The District further grants, conveys and confirms to the Corporation, for the use, benefit and enjoyment of the Corporation, its successors in interest to the Property, including the Assignee, and its sublessees, and their respective employees, invitees, agents, independent contractors, patrons, customers, guests and members of the public visiting the Property, a right of entry which shall be irrevocable for the Term of this Lease Agreement over, across and under the property of the District adjacent to the Property to and from the Property for the purpose of: (a) ingress, egress, passage or access to and from the Property by pedestrian or vehicular traffic; (b) installation, maintenance and replacement of utility wires, cables, conduits and pipes; and (c) other purposes and uses necessary or desirable for access to and from and for operation and maintenance of the Property.

Section 7.3. Release and Indemnification Covenants. The District hereby indemnifies the Corporation, the Assignee and their respective directors, officers, agents, employees, successors and assigns against all claims, losses and damages, including legal fees and expenses, arising out of (a) the use, maintenance, condition or management of, or from any work or thing done on the Property by the District or the District’s employees, agents, contractors, invitees or licensees, (b) any breach or default on the part of the District in the performance of any of its obligations under this Lease Agreement, (c) any negligence or willful misconduct of the District or of any of its agents, contractors, servants, employees or licensees with respect to the Property, (d) any intentional misconduct or negligence of any sublessee of the District with respect to the Property, (e) the acquisition, construction, improvement and equipping of the Property, (f) the clean-up of any Hazardous Substances or toxic wastes from the Property, or (g) any claim alleging violation of any Applicable Environmental Laws, or the authorization of payment of the costs thereof. No indemnification is made under this Section 7.3 or elsewhere in this Lease Agreement for willful misconduct or gross negligence under this Lease Agreement by the Corporation, the Assignee, or their respective officers, agents, employees, successors or assigns. The indemnification hereunder shall continue in full force and effect notwithstanding the full payment of all obligations under this Lease Agreement or the termination of the Term of this Lease Agreement for any reason. The District and the Corporation each agree to promptly give notice to each other and the Assignee of any claim or liability hereby indemnified against following learning thereof.

Section 7.4. Assignment Agreement by the Corporation. The Corporation’s rights, title and interests under this Lease Agreement, including the right to receive and enforce payment of the Lease Payments to be made by the District hereunder, have been assigned to the Assignee; provided that the Corporation’s rights to indemnification and payment or reimbursement for any costs or expenses hereunder have been retained by the Corporation to the extent such rights accrue to the Corporation and shall have been assigned to the Assignee to the extent such rights accrue to the Assignee. The District hereby consents to such assignment. Whenever in this Lease Agreement any reference is made to the Corporation, such reference shall be deemed to refer to the Assignee (including its assignees).

The Assignee may make additional assignments of its rights, title and interests herein; provided such assignment is to (i) an “accredited investor” within the meaning of Regulation D promulgated under the Securities Act of 1933, or (ii) a “qualified institutional buyer” within the meaning of Rule 144A promulgated under the Securities Act of 1933, as amended, and is in compliance with all applicable securities laws, but no such assignment will be effective as against the District unless and until the Assignee has filed with the District at least five (5) Business Days’ prior

23 written notice thereof and an executed copy of an investor’s letter addressed to the District and the Corporation substantially in the form of the letter delivered by the Assignee on the Closing Date. The District shall pay all Lease Payments hereunder to the Assignee, as provided in Section 4.3(i) hereof, or under the written direction of the assignee named in the most recent assignment or notice of assignment filed with the District. During the Term of this Lease Agreement, the District will keep a complete and accurate record of all such notices of assignment.

Section 7.5. Assignment Agreement and Subleasing by the District. This Lease Agreement may not be assigned, mortgaged, pledged or transferred by the District. The District may sublease the Property, or any portion thereof, with the prior written consent of the Assignee, at the Assignee’s sole discretion, subject to all of the following conditions:

(a) This Lease Agreement and the obligation of the District to make Lease Payments hereunder shall remain obligations of the District, and any sublease shall be subject and subordinate to this Lease Agreement.

(b) The District shall, within 30 days after the delivery thereof, furnish or cause to be furnished to the Corporation and the Assignee a true and complete copy of such sublease.

(c) No such sublease by the District may cause the Property to be used for a purpose other than as may be authorized under the provisions of the laws of the State.

(d) The District shall furnish the Corporation and the Assignee with a written opinion of Bond Counsel stating that such sublease does not cause the interest components of the Lease Payments to become includable in gross income for purposes of federal income taxation or to become subject to personal income taxation by the State.

(e) Any such sublease shall be subject and subordinate in all respects to the Site Lease and this Lease Agreement.

Notwithstanding the foregoing, in connection with any sublease entered into for financing purposes, the principal component of the then remaining Lease Payments plus the principal component of the sublease payments shall not exceed the fair market value of the Property.

Section 7.6. Amendment of Lease Agreement. This Lease Agreement may be amended with the prior written consent of the Corporation and the Assignee (at the Assignee’s sole discretion) provided such amendment does not, in the Assignee’s sole judgment, adversely affect the Assignee.

Section 7.7. Tax Covenants. The District shall not take any action or permit to be taken any action within its control which would cause or which, with the passage of time if not cured would cause, the interest components of the Lease Payments to become includable in gross income for federal income tax purposes. To that end, the District hereby makes the following specific covenants:

(a) The District hereby covenants that it shall not make or permit any use of the proceeds of this Lease Agreement that may cause the Lease Agreement to be “arbitrage bonds” within the meaning of Section 148 of the Internal Revenue Code of 1986, as amended.

24 (b) The District covenants that the proceeds of the Lease Agreement will not be used so as to cause the proceeds on the Lease Agreement to satisfy the private business tests of Section 141(b) of the Code or the private loan financing test of Section 141(c) of the Code.

(c) The District covenants not to take any action or permit or suffer any action to be taken if the result of the same would be to cause the Lease Agreement to be “federally guaranteed” within the meaning of Section 149(b) of the Code.

(d) The District represents and covenants that it, together with its subordinate entities, has not and will not issue during the calendar year 2021 obligations (other than private activity bonds (except qualified 501(c)(3) bonds) as defined in Section 145 of the Code) the interest on which is exempt from federal income tax under Section 103 of the Code which, when aggregated with all obligations the interest on which is exempt from federal income tax under Section 103 of the Code, will exceed an aggregate principal amount of $10,000,000.

Section 7.8. Financial Statements. Within two hundred seventy (270) days following the end of each Fiscal Year of the District during the Term of this Lease Agreement, the District will provide the Assignee with a copy of its audited financial statements for such Fiscal Year. Such audited financial statements shall include the District’s audited financial statements, including such information as is required by applicable Government Accounting Standards Board pronouncements and applicable State law. The District hereby agrees to provide the Assignee with such other information as may be reasonably requested by the Assignee.

Section 7.9. Records and Accounts. The District covenants and agrees that it shall keep proper books of record and accounts of its operations, in which complete and correct entries shall be made of all transactions relating to the District. Said books and records shall at all reasonable times be subject to the inspection of the Assignee upon 72 hours’ prior notice.

Section 7.10. Observance of Laws and Regulations. The District will well and truly keep, observe and perform or cause to be kept, observed and performed all valid and lawful obligations or regulations now or hereafter imposed on it by contract, or prescribed by any law of the United States, or of the State, or by any officer, board or commission having jurisdiction or control, as a condition of the continued enjoyment of any and every right, privilege or franchise now owned or hereafter acquired and enjoyed by the District, including the District’s right to exist and carry on business as a mosquito abatement district, to the end that such rights, privileges and franchises shall be maintained and preserved, and shall not become abandoned, forfeited or in any manner impaired.

Section 7.11. Notices. During the Term of this Lease Agreement, the District shall provide to the Assignee:

(a) immediate notice by telephone, promptly confirmed in writing, of any event, action or failure to take any action which constitutes an Event of Default under this Lease Agreement, together with a detailed statement by a District Representative of the steps being taken by the District to cure the effect of such Event of Default.

(b) within ten (10) days of knowledge by the District written notice of any Material Litigation or Material Adverse Effect, or any investigation, inquiry or similar proceeding by any Governmental Authority.

25 (c) with reasonable promptness, such other information respecting the District, and the operations, affairs and financial condition of the District as the Assignee may from time to time reasonably request.

ARTICLE VIII EVENTS OF DEFAULT AND REMEDIES

Section 8.1. Events of Default Defined. Any one or more of the following events constitutes an Event of Default hereunder:

(a) Failure by the District to pay any Lease Payment or other payment required to be paid hereunder at the time specified herein.

(b) Failure by the District to observe and perform any covenant, condition or agreement on its part to be observed or performed hereunder, other than as referred to in the preceding clause (a) of this Section, for a period of 30 days after written notice specifying such failure and requesting that it be remedied has been given to the District by the Assignee. However, if in the reasonable opinion of the District the failure stated in the notice can be corrected, but not within such 30-day period, the Corporation and the Assignee shall not unreasonably withhold their consent to an extension of such time (for a period not to exceed 60 days) if corrective action is instituted by the District within such 30-day period and diligently pursued until the default is corrected.

(c) The filing by the District of a voluntary petition in bankruptcy, or failure by the District promptly to lift any execution, garnishment or attachment, or adjudication of the District as a bankrupt, or assignment by the District for the benefit of creditors, or the entry by the District into an agreement of composition with creditors, or the approval by a court of competent jurisdiction of a petition applicable to the District in any proceedings instituted under the provisions of the Federal Bankruptcy Code, as amended, or under any similar federal or State act now existing or which may hereafter be enacted.

(d) Any statement, representation or warranty of a material nature made by the District in or pursuant to this Lease Agreement or its execution, delivery or performance shall have been false, incorrect, misleading or breached in any material respect on the date when made.

(e) Any default occurs under any other agreement for borrowing money, lease financing of property or otherwise receiving credit under which the District is an obligor, if such default arises under any other agreement for borrowing money, lease financing of property or provision of credit provided by the Assignee or any affiliate of the Assignee.

(f) Any default by the District to observe any material covenant, condition or agreement on its part to be observed or performed under the Site Lease.

(g) Any court of competent jurisdiction shall find or rule that the Site Lease or this Lease Agreement is not valid or binding against the District.

(h) Any Material Adverse Effect shall exist.

Section 8.2. Remedies on Default. Whenever any Event of Default has happened and is continuing, the Corporation may exercise any and all remedies available under law or granted under

26 this Lease Agreement; provided, however, that notwithstanding anything herein to the contrary, there shall be no right under any circumstances to accelerate the Lease Payments or otherwise declare any Lease Payments not then in default to be immediately due and payable. Each and every covenant hereof to be kept and performed by the District is expressly made a condition and upon the breach thereof the Corporation may exercise any and all rights granted hereunder; provided, that no termination of this Lease Agreement shall be effected either by operation of law or acts of the parties hereto, except only in the manner herein expressly provided. Upon the occurrence and during the continuance of any Event of Default, the Corporation may exercise any one or more of the following remedies:

(a) Enforcement of Payments Without Termination. If the Corporation does not elect to terminate this Lease Agreement in the manner hereinafter provided for in subparagraph (b) hereof, the District agrees to and shall remain liable for the payment of all Lease Payments and the performance of all conditions herein contained and shall reimburse the Corporation for any deficiency arising out of the re-leasing of the Property, or, if the Corporation is unable to re-lease the Property, then for the full amount of all Lease Payments to the end of the Term of this Lease Agreement, but said Lease Payments and/or deficiency shall be payable only at the same time and in the same manner as hereinabove provided for the payment of Lease Payments hereunder, notwithstanding such entry or re-entry by the Corporation or any suit in unlawful detainer, or otherwise, brought by the Corporation for the purpose of effecting such re-entry or obtaining possession of the Property or the exercise of any other remedy by the Corporation. The District hereby irrevocably appoints the Corporation as the agent and attorney-in-fact of the District to enter upon and re-lease the Property upon the occurrence and continuation of an Event of Default and to remove all personal property whatsoever situated upon the Property, to place such property in storage or other suitable place in San Mateo County for the account of and at the expense of the District, and the District hereby exempts and agrees to hold harmless the Corporation from any costs, loss or damage whatsoever arising or occasioned by any such entry upon and re-leasing of the Property and the removal and storage of such property by the Corporation or its duly authorized agents in accordance with the provisions herein contained. The District agrees that the terms of this Lease Agreement constitute full and sufficient notice of the right of the Corporation to re-lease the Property in the event of such re-entry without effecting a surrender of this Lease Agreement, and further agrees that no acts of the Corporation in effecting such re-leasing shall constitute a surrender or termination of this Lease Agreement irrespective of the term for which such re-leasing is made or the terms and conditions of such re-leasing, or otherwise, but that, on the contrary, in the event of such default by the District the right to terminate this Lease Agreement shall vest in the Corporation to be effected in the sole and exclusive manner hereinafter provided for in subparagraph (b) hereof. The District agrees to surrender and quit possession of the Property upon demand of the Corporation for the purpose of enabling the Property to be re-let under this paragraph. Any rental obtained by the Corporation in excess of the sum of Lease Payments plus costs and expenses incurred by the Corporation for its services in re-leasing the Property shall be paid to the District.

(b) Termination of Lease. If an Event of Default occurs and is continuing hereunder, the Corporation at its option may terminate this Lease Agreement and re-lease all or any portion of the Property, subject to the Site Lease. If the Corporation terminates this Lease Agreement at its option and in the manner hereinafter provided due to a default by the District (and notwithstanding any re-entry upon the Property by the Corporation in any manner whatsoever or the re-leasing of the Property), the District nevertheless agrees to pay to the Corporation all costs, loss or damages howsoever arising or occurring payable at the same time and in the same manner as is herein provided in the case of payment of Lease Payments and Additional Payments. Any surplus

27 received by the Corporation from such re-leasing shall be applied by the Corporation to Lease Payments due under this Lease Agreement. Neither notice to pay rent or to deliver up possession of the premises given under law nor any proceeding in unlawful detainer taken by the Corporation shall of itself operate to terminate this Lease Agreement, and no termination of this Lease Agreement on account of default by the District shall be or become effective by operation of law, or otherwise, unless and until the Corporation shall have given written notice to the District of the election on the part of the Corporation to terminate this Lease Agreement. The District covenants and agrees that no surrender of the Property, or of the remainder of the Term hereof or any termination of this Lease Agreement shall be valid in any manner or for any purpose whatsoever unless stated or accepted by the Corporation by such written notice.

(c) Proceedings at Law or In Equity. If an Event of Default occurs and continues hereunder, the Corporation may take whatever action at law or in equity may appear necessary or desirable to collect the amounts then due and thereafter to become due hereunder or to enforce any other of its rights hereunder.

(d) Remedies under the Site Lease. If an Event of Default occurs and continues hereunder, the Corporation may exercise its rights under the Site Lease.

Section 8.3. No Remedy Exclusive. No remedy herein conferred upon or reserved to the Corporation is intended to be exclusive and every such remedy shall be cumulative and shall be in addition to every other remedy given under this Lease Agreement or now or hereafter existing at law or in equity. No delay or omission to exercise any right or power accruing upon the occurrence of any Event of Default shall impair any such right or power or shall be construed to be a waiver thereof, but any such right and power may be exercised from time to time and as often as may be deemed expedient. In order to entitle the Corporation to exercise any remedy reserved to it in this Article VIII it shall not be necessary to give any notice, other than such notice as may be required in this Article VIII or by law.

Section 8.4. Agreement to Pay Attorneys’ Fees and Expenses. If any party to this Lease Agreement defaults under any of the provisions hereof and the non-defaulting party should employ attorneys (including in-house legal counsel) or incur other expenses for the collection of moneys or the enforcement or performance or observance of any obligation or agreement on the part of the defaulting party herein contained, the defaulting party agrees that it will on demand therefor pay to the non-defaulting party the reasonable fees of such attorneys (including allocable costs and expenses of in-house legal counsel, if any) and such other expenses so incurred by the non-defaulting party.

Section 8.5. No Additional Waiver Implied by One Waiver. If any agreement contained in this Lease Agreement is breached by either party and thereafter waived by the other party, such waiver is limited to the particular breach so waived and will not be deemed to waive any other breach hereunder.

Section 8.6. Assignee to Exercise Rights. Such rights and remedies as are given to the Corporation under this Article VIII have been assigned by the Corporation to the Assignee, to which assignment the District hereby consents. Such rights and remedies shall be exercised solely by the Assignee.

28 ARTICLE IX PREPAYMENT OF LEASE PAYMENTS

Section 9.1. Optional Prepayment. The District may prepay, commencing on the tenth anniversary of the Closing Date, with 30 days written notice, all or any portion of the Lease Payments, from any available source of funds at a prepayment price equal to the principal component of the Lease Payments to be redeemed, together with accrued interest to the date of prepayment, with a 2% prepayment premium.

Section 9.2. Mandatory Prepayment from Net Proceeds of Insurance or Eminent Domain. The District shall be obligated to prepay the unpaid principal components of the Lease Payments in whole or in part in such order of prepayment as shall be selected by the District on any date, together with any accrued and unpaid interest, a prepayment premium, if applicable, and any other costs related to such prepayment, from and to the extent of any proceeds of insurance award or condemnation award with respect to the Property to be used for such purpose under Section 6.2. The District and the Corporation hereby agree that such proceeds, to the extent remaining after payment of any delinquent Lease Payments, shall be credited towards the District’s obligations under this Section 9.2.

Section 9.3. Security Deposit. Notwithstanding any other provision of this Lease Agreement, the District may on any date secure the payment of the Lease Payments in whole or in part by depositing with the Corporation or a fiduciary reasonably satisfactory to the Corporation, in trust, an amount of cash, which shall be held in a segregated trust or escrow fund under a trust or escrow agreement that is in form and content acceptable to the Corporation, which cash so held is either (a) sufficient to pay such Lease Payments, including the principal and interest components thereof, in accordance with the Lease Payment schedule set forth in Exhibit B, or (b) invested in whole in non-callable Federal Securities maturing not later than the dates such funds will be required to make Lease Payments or any prepayment in an amount which is sufficient, in the opinion of an independent certified public accountant (which opinion must be in form and substance, and with such an accountant, acceptable to the Corporation and addressed and delivered to the Corporation), together with interest to accrue thereon and without reinvestment and together with any cash which is so deposited, to pay such Lease Payments when due under Section 4.3(a) or when due on any optional prepayment date under Section 9.1, as the District instructs at the time of said deposit; provided, however, that at or prior to the date on which any such security deposit is established, the District shall deliver to the Corporation an opinion of Bond Counsel (in form and substance acceptable to the Corporation) to the effect that any such security deposit will not adversely affect the excludability of the interest component of Lease Payments from gross income of the Assignee for federal income tax purposes. In the event of a security deposit under this Section with respect to all unpaid Lease Payments, (i) the Term of this Lease Agreement shall continue, (ii) all obligations of the District under this Lease Agreement, and all security provided by this Lease Agreement for said obligations, shall thereupon cease and terminate, excepting only (A) the obligation of the District to make, or cause to be made, all of the Lease Payments from such security deposit and, to the extent of any deficiency, as rent payable from other legally available funds of the District, and (B) the release and indemnification obligations of the District under Section 7.3, and (iii) under Section 4.5, the Corporation’s leasehold interest in the Property will vest in the District on the date of said deposit automatically and without further action by the District or the Corporation. The District hereby grants a first priority security interest in and the lien on said security deposit and all proceeds thereof in favor of the Corporation. Said security deposit shall be deemed to be and shall constitute a special fund for the payment of Lease Payments in accordance with the provisions of this Lease Agreement

29 and, notwithstanding anything to the contrary herein, Lease Payments therefrom shall not be subject to abatement under Section 6.03 hereof to the extent payable from the funds held by the Corporation or the fiduciary as described in the first sentence of this Section 9.3.

ARTICLE X MISCELLANEOUS

Section 10.1. Notices. Any notice, request, complaint, demand or other communication under this Lease Agreement shall be given by first class mail or personal delivery to the party entitled thereto at its address set forth below, or by facsimile transmission or other form of telecommunication, at its number set forth below. Notice shall be effective either (a) upon transmission by facsimile transmission or other form of telecommunication, (b) 48 hours after deposit in the United States of America first class mail, postage prepaid, or (c) in the case of personal delivery to any person, upon actual receipt. The Corporation, the District and the Assignee may, by written notice to the other parties, from time to time modify the address or number to which communications are to be given hereunder.

If to the District: San Mateo County Mosquito and Vector Control District 1351 Rollins Road Burlingame, CA 94010 Phone: (650) 344-8592 Attention: District Manager

If to the Corporation: Municipal Finance Corporation 2945 Townsgate Road, Suite 200 Westlake Village, CA 91361 Attention: President Phone: (805) 719-1236

If to the Assignee: CN Financing, Inc. 555 South Flower Street, 21st Floor Los Angeles, CA 90071 Attention: Scott Johnson, Senior Vice President Phone: (213) 673-9013

Section 10.2. Binding Effect. This Lease Agreement inures to the benefit of and is binding upon the Corporation, the District and their respective successors and assigns. The Assignee is hereby made a third party beneficiary hereunder with all rights of a third party beneficiary.

Section 10.3. Severability. If any provision of this Lease Agreement is held invalid or unenforceable by any court of competent jurisdiction, such holding will not invalidate or render unenforceable any other provision hereof.

Section 10.4. Net-net-net Lease. This Lease Agreement is a “net-net-net lease” and the District hereby agrees that the Lease Payments are an absolute net return to the Corporation, free and clear of any expenses, charges or set-offs whatsoever.

30 Section 10.5. Further Assurances and Corrective Instruments. The Corporation and the District agree that they will, from time to time, execute, acknowledge and deliver, or cause to be executed, acknowledged and delivered, such supplements hereto and such further instruments as may reasonably be required for correcting any inadequate or incorrect description of the Property hereby leased or intended so to be or for carrying out the expressed intention of this Lease Agreement.

Section 10.6. Waiver of Personal Liability. No member, officer, agent or employee of the District or the Corporation shall be individually or personally liable for the payment of Lease Payments; but nothing herein contained shall relieve any such member, officer, agent or employee from the performance of any official duly provided by law.

Section 10.7. Execution in Counterparts. This Lease Agreement may be executed in several counterparts, each of which is an original and all of which constitutes one and the same instrument.

Section 10.8. Applicable Law. This Lease Agreement is governed by and construed in accordance with the laws of the State.

Section 10.9. Captions. The captions or headings in this Lease Agreement are for convenience only and in no way define, limit or describe the scope or intent of any provisions or section of this Lease Agreement.

Section 10.10. Waiver of Jury Trial; Agreement for Judicial Reference. To the fullest extent permitted by law, each of the District and the Corporation hereby waives its right to trial by jury in any action, proceeding and/or hearing on any matter whatsoever arising out of, or in any way connected with, this Agreement or any related documents, or the enforcement of any remedy under any law, statute, or regulation.

To the extent the foregoing waiver of a jury trial is unenforceable under applicable California law, each of the District and the Corporation agrees to refer, for a complete and final adjudication, any and all issues of fact or law involved in any litigation or proceeding (including all discovery and law and motion matters, pretrial motions, trial matter and post-trial motions up to and including final judgment), brought to resolve any dispute (whether based on contract, tort or otherwise) between the parties hereto arising out of, in connection with or otherwise related or incidental to this Agreement to a judicial referee who shall be appointed under a general reference pursuant to California Code of Civil Procedure Section 638, which referee’s decision will stand as the decision of the court. Such judgment will be entered on the referee’s statement of judgment in the same manner as if the action had been tried by the court. The parties shall select a single neutral referee, who shall be a retired state or federal judge with at least five years of judicial experience in civil matters; provided that the event the parties cannot agree upon a referee, the referee will be appointed by the court.

Section 10.11. Servicing; Appointment of Servicer. The Assignee may engage a servicer, and collaterally assign some or all of its rights under this Lease, to act on behalf of the Assignee under this Lease Agreement as the “Servicer”. The Assignee may at any time and from time to time terminate or remove and replace any such Servicer. The Assignee shall give written notice to the District of its appointment, termination, removal or replacement of any Servicer, and the parties may rely on any such notice until any subsequent notice is given. Initially, the Assignee has engaged City National Bank to act as the Servicer hereunder and City National Bank has accepted such engagement. The Assignee is under no obligation to appoint a Servicer; if at any time a Servicer has

31 not been designated by the Assignee, any references to the “Servicer” herein shall refer to the Assignee. Any opinion or certificate provide for herein that is directed to the Servicer shall also be directed to, and may be relied upon by, the Assignee.

The Assignee shall be solely responsible for providing the funding for the Site Lease Payment under this Lease Agreement. From and after the Closing Date, if the Assignee has appointed a Servicer for the Assignee under this Lease Agreement, the District acknowledges and agrees that the Servicer shall exercise all of the rights and remedies of the Assignee under this Lease Agreement, shall receive all reports, statements, notices and other communications from the District on behalf of the Assignee required to be delivered to the Assignee under this Lease Agreement and shall be entitled to all of the protections afforded the Assignee under this Lease Agreement.

32 IN WITNESS WHEREOF, the Corporation and the District have caused this Lease Agreement to be executed in their respective names by their duly authorized officers, all as of the date first above written.

MUNICIPAL FINANCE CORPORATION

By: Authorized Representative

SAN MATEO COUNTY MOSQUITO AND VECTOR CONTROL DISTRICT

By: District Manager

EXHIBIT A

DESCRIPTION OF THE PROPERY The land referred to herein is situated in the State of California, County of San Mateo, City of Burlingame and described as follows:

A-1 EXHIBIT B

SCHEDULE OF LEASE PAYMENTS

Due Date Lease Payment Principal Interest 12/30/21 06/30/22 12/30/22 06/30/23 12/30/23 06/30/24 12/30/24 06/30/25 12/30/25 06/30/26 12/30/26 06/30/27 12/30/27 06/30/28 12/30/28 06/30/29 12/30/29 06/30/30 12/30/30 06/30/31 12/30/31 06/30/32 12/30/32 06/30/33 12/30/33 06/30/34 12/30/34 06/30/35 12/30/35 06/30/36 12/30/36

$_ $ $

B-1 AFTER RECORDATION RETURN TO:

Kutak Rock LLP 5 Park Plaza, Suite 1500 Irvine, CA 92614-8595 Attention: Albert R. Reyes, Esq.

MEMORANDUM OF LEASE AGREEMENT

This Memorandum of Lease Agreement (this “Memorandum of Lease Agreement”), is entered into as of July 1, 2021, between the MUNICIPAL FINANCE CORPORATION, a corporation duly organized and existing under the laws of the State of California, as lessor (the “Corporation”), and the SAN MATEO COUNTY MOSQUITO AND VECTOR CONTROL DISTRICT, a mosquito abatement and vector control district organized and existing under and by virtue of the laws of the State of California (the “District”), who agree as follows:

Section 1. The Lease. The District leases from the Corporation, and the Corporation leases to the District, certain real property described in Section 2 hereof, and the improvements situated upon said real property, upon the terms and conditions, and for the term, more fully set forth in the Lease Agreement, dated as of July 1, 2021, between the Corporation, as lessor, and the District, as lessee (the “Lease Agreement”), all of the provisions of which are hereby incorporated into this Memorandum of Lease Agreement by reference.

Section 2. Leased Premises; Term. The Corporation leases, lets and demises unto the District and the District leases, hires and takes from the Corporation, that certain parcel of real property situated in the City of Burlingame, County of San Mateo, State of California, more particularly described in Exhibit A attached hereto and made a part hereof and those certain improvements on the Site (collectively, the “Property”). The Lease Agreement is for a term commencing on the date of recordation of this Memorandum of Lease Agreement and ending on ______, 2036, or such earlier or later date on which the Lease Payments (as defined in the Lease Agreement) are paid in full or provision has been made for such payment in accordance with the Lease Agreement.

Section 3. Assignment of Lessor’s Rights Under Lease Agreement; No Merger of Title. The parties hereto acknowledge that pursuant to the Assignment Agreement, dated as of July 1, 2021, between the Corporation and CN Financing, Inc. (the “Assignee”), recorded concurrently herewith, the Corporation has assigned, transferred and delivered to the Assignee, all of its rights, title and interest in, to and under the Site Lease dated as of July 1, 2021 and recorded concurrently herewith (as defined in the Lease Agreement) and the Lease Agreement. Section 4. Provisions Binding on Successors and Assigns. Subject to the provisions of the Lease Agreement relating to assignment and subletting, the Lease Agreement shall inure to the benefit of and shall be binding upon the Corporation and the District and their respective successors and assigns, including the Assignee.

Section 5. Purpose of Memorandum. This Memorandum of Lease Agreement is prepared for the purpose of recordation, and it in no way modifies the provisions of the Lease Agreement.

Section 6. Execution. This Memorandum of Lease Agreement may be executed in several counterparts, each of which shall be an original and all of which shall constitute but one and the same instrument.

Section 7. State Law. This Memorandum of Lease shall be governed by and construed in accordance with the laws of the State of California.

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

2 IN WITNESS WHEREOF, the Corporation has caused this Memorandum of Lease Agreement to be executed in its corporate name by its duly authorized officer; and the District has caused this Memorandum of Lease Agreement to be executed in its name by its duly authorized officer, as of the date first above written.

MUNICIPAL FINANCE CORPORATION

By: Authorized Representative

SAN MATEO COUNTY MOSQUITO AND VECTOR CONTROL DISTRICT

By: District Manager

3 CALIFORNIA ALL-PURPOSE ACKNOWLEDGEMENT

STATE OF CALIFORNIA )

COUNTY OF ______)

On ______before me, ______, Notary Public, personally appeared ,

WITNESS my hand and official seal.

Place Notary Seal Above Signature of Notary Public

CALIFORNIA ALL-PURPOSE ACKNOWLEDGEMENT 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 ______)

On ______before me, ______, Notary Public, personally appeared ,

Place Notary Seal Above Signature of Notary Public

EXHIBIT A

DESCRIPTION OF THE PROPERTY The land referred to herein is situated in the State of California, County of San Mateo, City of Burlingame and described as follows:

A-1 CERTIFICATE OF ACCEPTANCE

This is to certify that the interest in real property conveyed by the Memorandum of Lease, dated as of July 1, 2021, from the Municipal Finance Corporation (the “Corporation”) as lessor, to the San Mateo County Mosquito and Vector Control District (the “District”), as lessee, is hereby accepted by the undersigned officer on behalf of the District, pursuant to authority conferred by resolution of the District Board adopted on July 14, 2021, and the District consents to recordation thereof by its duly authorized officer.

Dated: July __, 2021

SAN MATEO COUNTY MOSQUITO AND VECTOR CONTROL DISTRICT

By: District Manager

AFTER RECORDATION PLEASE RETURN TO:

Kutak Rock LLP 5 Park Plaza, Suite 1500 Irvine, CA 92614-8595 Attention: Albert R. Reyes, Esq.

ASSIGNMENT AGREEMENT

Dated as of July 1, 2021

by and between

MUNICIPAL FINANCE CORPORATION

and

CN FINANCING, INC.

ASSIGNMENT AGREEMENT

This ASSIGNMENT AGREEMENT, is made and entered into as of July 1, 2021, by and between MUNICIPAL FINANCE CORPORATION, a corporation organized and existing under the laws of the State of California (the “Corporation”), and CN FINANCING, INC., a corporation organized and existing under the laws of the State of California, as assignee, including its successors and assigns (the “Assignee”).

WITNESSETH:

In the joint and mutual exercise of their powers, in consideration of the mutual covenants herein contained, and for other consideration the receipt and sufficiency of which are hereby acknowledged, the parties hereto recite and agree as follows:

Section 1. Recitals.

(a) The Corporation and the San Mateo County Mosquito and Vector Control District (the “District”), have entered into a unrecorded Lease Agreement, dated as of July 1, 2021 (the “Lease Agreement”), a Memorandum of which is recorded concurrently herewith, whereby the Corporation has agreed to lease to the District, and the District has agreed to lease from the Corporation, the property described in Exhibit A hereto, or any property substituted therefor in accordance with Section 4.7 of the Lease Agreement (the “Property”), in the manner and on the terms set forth in the Lease Agreement, which terms include, without limitation, the obligation of the District to pay lease payments (the “Lease Payments”) to the Corporation in consideration of the District’s use and enjoyment of the Property.

(b) The Assignee has agreed to acquire the right, title and interest of the Corporation under the Lease Agreement, and the purchase price therefor will be made available to the District for the purpose of financing certain capital improvements in the District (the “Project”).

(c) Each of the parties has the power and authority to enter into this Assignment Agreement and has taken all actions necessary to authorize its officers to execute it.

Section 2. Assignment. The Corporation, for good and valuable consideration, hereby transfers, assigns and sets over to the Assignee, effective on the Closing Date, all of the Corporation’s rights and interests under the Site Lease, which is recorded concurrently herewith, and the Lease Agreement (excepting only the Corporation’s rights under Section 7.3 of the Lease Agreement), including without limitation (i) the right to receive and collect all of the Lease Payments from the District, (ii) the right to receive and collect any proceeds of any insurance maintained thereunder and of any condemnation award rendered with respect to the Property, and (iii) the right to exercise such rights and remedies conferred on the Corporation pursuant to the Site Lease and Lease Agreement as may be necessary or convenient (A) to enforce payment of the Lease Payments, or (B) otherwise to protect the interests of the Assignee in the event of a default by District under the Site Lease and Lease Agreement.

The above assignment is intended to be an absolute and unconditional assignment to the Assignee and is not intended as a loan by the Assignee to the Corporation. Accordingly, in the event of bankruptcy of the Corporation, the assigned property shall not be part of the Corporation’s estate. However, if the above assignment is deemed to be a loan by the Assignee to the Corporation, then the Corporation shall be deemed to have granted to the Assignee, and hereby grants to the Assignee, a continuing first priority security interest in the assigned property and all proceeds thereof as collateral security for all obligations of the Corporation hereunder and all obligations of the District under the Lease Agreement and this Assignment Agreement shall be deemed a security agreement with respect to such loan.

Section 3. Representation and Agreements of the Corporation. The Corporation hereby represents, warrants, acknowledges and agrees to and for the benefit of the Assignee as follows:

(a) The Corporation has made no prior sale or assignment of any of its right, title or interest in the Site Lease (as defined in the Lease Agreement) and the Lease Agreement and has not mortgaged or granted a security interest or otherwise encumbered its right, title and interest therein.

(b) The Site Lease and the Lease Agreement are genuine and in all respects are what they report to be and are in full force and effect, and neither the District nor the Corporation is in default thereunder.

(c) The Assignee is not liable for and does not assume responsibility for the performance of any of the covenants, agreements, duties or obligations specified in the Lease Agreement to be kept, paid, or performed by the Corporation.

(d) The Assignee has paid or agreed to pay $______for the assignment of the Lease Agreement.

(e) The Corporation has the power, authority, and legal right to execute, deliver and perform this Assignment Agreement, and this Assignment Agreement is a valid, binding, and enforceable obligation of the Corporation, except as such enforceability may be limited by bankruptcy, insolvency or other laws affecting creditors’ rights generally and by the application of equitable principles.

(f) Good and marketable title to the rights assigned hereunder has been duly vested in the Assignee free and clear of any liens, security interests, encumbrances or other claims other than the rights of the District under the Lease Agreement.

Section 4. Covenants.

(a) Nonimpairment of Lease. The Corporation agrees that it (1) shall not have any right to amend, modify, compromise, release, terminate or permit prepayment of the Lease Agreement without the consent of the Assignee, and (2) shall not take any action that may impair the payment of Lease Payments or the validity or enforceability of the Lease Agreement.

(b) Lease Payments. If the Corporation receives any Lease Payments, then the Corporation shall receive such payments in trust for the Assignee and shall immediately deliver the same to the Assignee in the form received, duly endorsed by the Corporation for deposit by the Assignee.

(c) Further Assurances. The Corporation shall execute and deliver to the Assignee such notices of assignment, UCC financing statements, assignments of financing statements and other documents, in form and substance reasonably satisfactory to the Assignee, and the Corporation shall take such other actions, as the Assignee may reasonably request from time to time to evidence, perfect, maintain, and enforce the Assignee’s rights in the rights assigned hereunder and under the Assignment

-2- Agreement and/or to enforce or exercise the Assignee’s rights or remedies under the Lease Agreement. The Assignee may, where permitted by law, file such UCC financing statements without the Corporation’s signature.

Section 5. Acceptance. The Assignee hereby accepts the assignments made herein for the purpose of securing the Lease Payments due pursuant to the Lease Agreement and the rights under the Lease Agreement. Furthermore, by its acceptance of this Assignment Agreement, the Assignee represents for the benefit of the District that the Assignee reasonably expects to hold the Lease Agreement for its own account and does not presently expect to sell, assign, or otherwise transfer the Lease Agreement, subject to the Assignee’s right to dispose of or otherwise deal with its property (including the Lease Agreement) as it determines to be in its best interests from time to time

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

Section 7. Restriction on Transfers. The Assignee shall have the right at any time to assign, transfer, participate or convey the Lease Agreement or any interest therein or portion thereof, but no such assignment, transfer, participation or conveyance shall be effective as against the District unless and until the Assignee has delivered to the District written notice thereof that discloses the name and address of the subsequent Assignee or the Loan Servicer (as hereafter provided) and such assignment, transfer, participation or conveyance shall be made only to (i) an affiliate of the Assignee or (ii) banks, insurance companies or other financial institutions or their affiliates. Nothing herein shall limit the right of the Assignee or its assignees to sell or assign participation interests in the Lease Agreement to one or more entities listed in (i) or (ii), provided that any participation, custodial or similar agreement under which multiple ownership interests in the Lease Agreement are created shall provide the method by which the owners of such interests shall establish the rights and duties of a single entity, owner, servicer or other fiduciary or agent acting on behalf of all of the assignees (herein referred to as the “Loan Servicer”) to act on their behalf with respect to the rights and interests of the Assignee under the Lease Agreement, including with respect to the exercise of rights and remedies of the Assignee on behalf of such owners upon the occurrence of an event of default under the Lease Agreement.

-3-

IN WITNESS WHEREOF, the parties hereto have executed this Assignment Agreement by their officers thereunto duly authorized as of the day and year first written above.

MUNICIPAL FINANCE CORPORATION

By: Stefan A. Morton Vice President

CN FINANCING, INC.

By: Scott Johnson Senior Vice President

[Signature Page to Assignment Agreement dated as of July 1, 2021]

STATE OF CALIFORNIA ) ) ss. COUNTY OF ______)

On ______before me, ______, Notary Public, personally appeared ______, who proved to me on the basis of satisfactory evidence to be the person(s) whose names(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 behalf of which the person(s) acted, executed the 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

SIGNATURE OF NOTARY PUBLIC

(Seal)

STATE OF CALIFORNIA ) ) ss. COUNTY OF ______)

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

SIGNATURE OF NOTARY PUBLIC

(Seal)

EXHIBIT A

DESCRIPTION OF THE PROPERTY The land referred to herein is situated in the State of California, County of San Mateo, City of Burlingame and described as follows:

A-1 San Mateo County MVCD Board of Trustees Meeting July 14, 2021

Agenda Item 9A

BOARD COMMITTEE REPORTS

SUBJECT: Finance Committee Meeting of the Board of Trustees

Finance Committee members attended a meeting on July 6, 2021. Attendees included acting Committee Chair, Robert Riechel, Muhammad Baluom, Carolyn Parker, and Kati Martin. Members excused included Joe Galligan, Mason Brutschy (Chair), and Ray Williams. The Committee received staff reports on the following agenda items as well as a report from Bill Morton of Municipal Financial Services regarding the North Carolan property purchase. The District’s Attorney, Alexandra Barnhill advised she had reviewed the resolution and documents for the Carolan property and the proposed Spartina and Verizon contracts and found no concerns. After each presentation and discussion:

1. Committee voted unanimously to recommend to the Board to approve the Financial Report for FY 2020-21 as of May 31, 2021.

2. Committee voted unanimously to recommend to the Board to approve the updated capital asset replacement plan and to approve the District's long term financial projections of July 6, 2021

3. Committee received a report from William Morton of Municipal Finance Corporation discussing the financing of real property located at 1415 North Carolan, Burlingame CA. The Committee voted unanimously to recommend to the Board to approve the financing documents for the purpose of purchase of real property located at 1415 North Carolan, Burlingame.

4. Recommend approval of contract and agreements:

A Master Agreement for control of Invasive Spartina B Contract with the Department of Technology for Verizon phone services. Committee voted unanimously to recommend to the Board to approve the above items.

5. Retirement of assets Committee voted unanimously to recommend to the Board to approve the retirement of three pickup trucks from fixed asset inventory because the items have expired their useful life.

6. ADJOURMENT until next meeting scheduled for August 30, 2021, at 5:30 P.M.

Submitted by Robert Riechel – Finance Committee Member Acting as chair for this meeting. San Mateo County MVCD Board of Trustee Meeting July 14, 2021

Agenda Item 9 A.1

SUBJECT: CONSIDER RECCOMENDING THE BOARD APPROVE THE UPDATED CAPITAL ASSET REPLACEMENT PLAN AND THE DISTRICT’S LONG TERM FINANCIAL PROJECTIONS

Summary: Annually, the Board (upon recommendation of the Finance Committee) approves the updating of the Capital Asset Replacement plan. In connection with this process, the approved plan is incorporated into the Long-Term Financial Projection model that has been created to address long term financing implications of revenue, expenditures, and fund balance analysis to aid District Management and Board of Trustees concerning the impact of financial decisions contemplated by the management and Board. The attached Capital Asset Replacement plan has been updated. It has been reviewed by departmental management, Finance Director, District Manager, and Finance Committee for relevancy, timing, and cost estimates that will enable the District to accomplish long term goals and objectives. The plan itself encompasses 2 years of history as well as current budget (FY 20-21) and future estimates from FY 21-22 through FY 27-28. Costs are calculated at current replacement value of each asset and inflated for the estimated annual inflation through future fiscal years. Asset categories are as follows:

 Real Estate Acquisition  Structures & Improvements  Vehicle Purchases  Vehicle Leases  Administrative and Laboratory Equipment  Software

Significant Capital Asset Replacement Plan Highlights  The District intends to purchase real property located at 1450 North Carolan. The full purchase price is $7,800,000. These funds have been included in the approved budget for FY 21-22. In connection with the acquisition, improvements to the North Carolan have also been included in the amount of $1,764,280.  We have included a Solar Project to be added to the North Carolan property estimated at $140,000 to occur in FY 22-23.  Various vehicles are programmed to be purchased starting FY 23-24 through ranging from $144,435 in FY 23-24 to $296,577 in FY 27-28 and thereafter.  Magmax Kingfisher PCR equipment is scheduled to be purchased in FY 21-22 in the amount of $ 62,500. This amount is greater than originally budgeted, but staff has indicated that this equipment will serve the District well. If necessary, staff will later adjust the FY 21-22 approved budget by approximately $35,720.

Other planned expenditures for capital asset equipment are detailed in the attached materials.

1 San Mateo County MVCD Board of Trustee Meeting July 14, 2021

Significant Long Term Projection Plan Highlights Through FY 27-28, the District will remain financially stable barring any unforeseen or other economic or programmatic occurrences. The strength of this model is enhanced anytime an extraordinary occurrence develops. Projections of associated revenue or expenses are determined currently or in the future. The model can easily be adjusted to accommodate changes and other assumptions accordingly.

On the table depicting General Fund balances, you will note that total fund balances increase from $ 5,434,475 in FY 21-22 to $ $9,548, 464 through FY 28-29. During this period of time, unassigned fund balances increase from $ 3,704,989 to $ 5,518,978.

Recommendation:

Recommend the Board approve the updated Capital Improvement Plan and Long-Term Financial Projections as of June 29, 2021

Materials Attached:

1. Capital Asset Replacement Plan as of June 29, 2021 2. Updated Long Term Financial Projections as of June 29, 2021

1 San Mateo County Mosquito Abatement District Capital Asset Replacement Plan As of: 6/29/2021 14:45 Inflation Factors 1.00 1.03 1.06 1.10 1.14 1.18 1.22 1.26 1.30 - Current Cost After Category Asset Description Life Of Asset FY 19-20 FY 20-21 FY 21-22 FY 22-23 FY 23-24 FY 24-25 FY 25-26 FY 26-27 FY 27-28 FY 27-28

Real Estate Real Estate Acquisition 30 8,000,000 8,532 348,315 7,800,000 (Account 6005) Structures & Improvements Improvements To North Carolan 2,100,000 1,764,280 Solar Project 20 132,336 5,301 127,904 140,000 Painting - Exterior 35,150 36,205 Skylight Removal 2,786 2,786 Replace Front Gate Driveway Asphault 15 5,600 5,998 New Shop Roof 15 17,000 14,858 Security Systems for Burlingame 3 8,944 4,600 4,879 Wash Pad & pump system 30 50,000 58,812 Air Conditioner for Rollins Road 7 Units 20 70,000 20,000 20,000 20,000 10,000 Laboratory Counter Replacements 15 25,000 25,000 Rollup Doors 10 35,000 45,644 Total Building & Structures 2,481,816 33,543 132,783 1,845,485 160,000 20,000 10,000 58,812 - - 45,644

Vehicles Vehicle Purchases (Account 6035) Toyota Sienna 5-10 32,540 35,730 Chevrolet Silverado 2500 LT, 4x4 Truck 5-10 39,000 42,823 50,861 Red Argo 5-10 30,000 32,941 Argo Avenger 750 Hdi Realtree AP Camouflage, #A6 5-10 30,000 32,941 Drone 30,000 32,500 Klamath Boat and trailer 5-10 10,000 11,365 Argo Trailors (3) 5-10 9,383 36,276 Fork Lift 5-10 20,000 25,200 Jeep Wrangler 5-10 43,000 50,578 Jeep Wrangler 5-10 43,000 50,578 Jeep Wrangler 5-10 43,000 52,349 Jeep Wrangler 5-10 43,000 52,349 Jeep Wrangler 5-10 43,000 54,181 Jeep Wrangler 5-10 43,000 54,181 Jeep Wrangler 5-10 43,000 56,077 Jeep Wrangler 5-10 43,000 56,077 Total Purchases 544,923 - 68,776 - - 144,435 11,365 101,157 104,697 133,562 163,015

Vehicle Leases Vehicle Leases (Account 6030) 12262102-OT 2020 Subaru Forester CAP Amt 28,500 10,950 3,816 3,816 3,816 3,816 4,198 4,617 5,079 5,587 6,146 Ford Ranger 4,337 4,041 4,041 4,041 4,041 4,041 4,041 4,041 4,041 4,041 Ford Ranger 10,418 4,043 4,043 4,043 4,043 4,043 4,043 4,043 4,043 4,043 Ford Ranger 4,043 4,043 4,043 4,043 4,043 4,043 4,043 4,043 4,043 Ford Ranger 4,043 4,043 4,043 4,043 4,043 4,043 4,043 4,043 4,043 Ford Ranger 4,043 4,043 4,043 4,043 4,043 4,043 4,043 4,043 4,043 Ford Ranger 4,043 4,043 4,043 4,043 4,043 4,043 4,043 4,043 4,043 22MZZS-2018 NISS Frontier- Apr 2020 28,647 3,984 - 4,332 4,332 4,332 4,332 4,765 4,765 4,765 4,765 22NCN8-2018 NISS Frontier 28,647 7,156 - 4,332 4,332 4,332 4,332 4,765 4,765 4,765 4,765 22NCNF-2018 NISS Frontier 28,647 3,578 4,332 4,332 4,332 4,332 4,332 4,765 4,765 4,765 4,765 22NCNJ-2018 NISS Frontier 28,647 3,578 4,332 4,332 4,332 4,332 4,332 4,765 4,765 4,765 4,765 WA2K60-2014 NISS Frontier 28,647 4,328 4,332 4,332 4,332 4,332 4,332 4,765 4,765 4,765 4,765 WA2K61-2014 NISS Frontier 28,647 4,332 4,332 4,332 4,332 4,332 4,765 4,765 4,765 4,765 WA5F24-2014 NISS Frontier 28,647 1,847 4,332 4,332 4,332 4,332 4,332 4,765 4,765 4,765 4,765 WA5F25-2014 NISS Frontier 28,647 1,847 4,332 4,332 4,332 4,332 4,332 4,765 4,765 4,765 4,765 23CDWF-2020 Subaru Forester (Deleted) 2,589 na na na na na na na na na Lab Vehicle 45,000 5,115 Managers Vehicle 45,000 - 5,852 7,272 7,200 7,200 7,200 7,200 8,280 8,280 8,280 Total Leases 347,676 54,613 65,031 70,000 69,928 69,928 70,310 74,195 75,737 76,245 76,803

Current Cost After Category Asset Description Life Of Asset FY 19-20 FY 20-21 FY 21-22 FY 22-23 FY 23-24 FY 24-25 FY 25-26 FY 26-27 FY 27-28 FY 27-28

Administrative Equipment - Operations & Admin (Account 6020) Water Heater Replacement (Boiler) 10 12,425 16,204 Office Automation Project 10 5,000 - Server Replacement 5 10,215 11,216 12,871 Admin. Parking - Slurry & Striping 3 7,000 7,210 Pressure Washer (HOTSY) 10 8,500 15,000 Univar Dynajet Fogger ULV Electric Sprayer Truck 7 17,065 20,073 Univar Dynajet Fogger ULV Sprayer Truck Mounted 7 17,065 20,073 Airboat 30 50,000 65,206 Gambusia Solutions - Elite Tank 30 16,000 20,866 BVA Tank Project 30 30,000 39,124 Environmental Chamber-Store Room (2) 15 37,379 16,448 24,508 Fume Hood-Resistance Lab 15 10,000 9,895 Lab PCR, Magmax Kingfisher 10 26,000 62,500 Lab PCR, Quant 5 10 50,000 53,045 Autoclave Model 2340EP 10 10,000 12,174 Biological Safety Cabinet-Virus Lab 15 15,000 18,261 Omni Bead Ruptor 7 5,000 6,087 Hemotek Membraine Feeding System -Blood 7 10,000 13,041 Tech. Room Remodel & Furniture 5 20,000 20,600 Conference Room Furniture 10 12,500 14,206 Office Furniture - Upstairs 10 7,500 8,523 Office Furniture - Downstairs 10 10,000 11,365 Total Equipment - Operations & Admin 386,649 16,448 34,403 105,310 53,045 11,216 34,094 40,145 36,522 12,871 154,440

(Account 6025) SMCMVCD Web Development 5 33,019 35,030 MapVision data management software 8 230,000 15,375 25,000 25,000 25,000 25,000 25,000 300,000 30,000 30,000 Total Software 263,019 15,375 - 25,000 60,030 25,000 25,000 25,000 300,000 30,000 30,000

Grand Totals 12,024,083 128,511 649,308 9,845,795 343,003 270,579 150,768 299,308 516,956 252,677 469,902 San Mateo County Mosquito & Vector Control District Multi Year Projection Of Combined Revenue and Expenditure Budget Summary for FY 2018-19 through FY 2027-28

FY 18-19 FY 19-20 FY 20-21 FY 21-22 FY 22-23 FY 23-24 FY 24-25 FY 25-26 FY 26-27 FY 27-28 FY 28-29

BEGINNING GENERAL FUND BALANCE $ 5,864,430 $ 6,410,539 $ 9,694,058 $ 9,753,270 $ 5,434,475 $ 5,851,256 $ 6,348,240 $ 7,106,615 $ 7,745,954 $ 8,197,854 $ 8,958,579 RESOURCES: PROGRAM REVENUES 2,343,609 2,354,423 2,371,677 2,345,910 2,401,703 2,459,170 2,518,361 2,579,327 2,642,123 2,706,802 2,773,422 PROPERTY TAXES 2,629,658 2,797,860 2,955,693 3,049,097 3,166,296 3,306,636 3,456,029 3,614,168 3,779,600 3,964,029 4,157,543 OTHER TAXES 633,752 679,554 692,480 690,000 545,000 545,000 545,000 545,000 545,000 545,000 545,000 INTEREST & MISC. 198,759 408,667 164,878 285,968 319,500 326,238 333,143 340,222 347,478 354,915 362,537 GRANT & OTHER REVENUE 18,066 2,009,380 ------TOTAL RESOURCES $ 5,823,843 $ 8,249,884 $ 6,184,728 $ 6,370,975 $ 6,432,499 $ 6,637,044 $ 6,852,533 $ 7,078,717 $ 7,314,200 $ 7,570,745 $ 7,838,502

EXPENDITURES: SALARIES &WAGES 2,258,887 2,612,835 2,666,617 2,861,515 2,954,053 3,053,745 3,146,191 3,241,476 3,339,686 3,440,913 3,545,248 EMPLOYEE BENEFITS 945,440 800,377 814,375 852,839 884,011 927,795 974,047 1,023,181 1,075,405 1,130,945 1,190,040 TRAINING BOARD & STAFF 55,706 48,436 14,760 37,200 38,316 39,657 41,045 42,482 43,968 45,507 47,100 ADMINISTRATION 472,787 527,816 481,594 566,678 583,678 604,107 506,583 524,314 542,665 561,658 581,316 INSURANCE 74,016 80,335 101,740 103,783 106,896 111,263 114,510 118,518 123,416 126,959 131,403 COMPUTER HARDWARE & SOFTWARE 45,817 49,420 64,555 78,772 81,135 83,975 86,914 89,956 93,104 96,363 99,736 FACILITIES MAINTENANCE 29,740 42,413 46,405 48,175 49,620 51,357 53,154 55,015 56,940 58,933 60,996 UTILITIES 77,874 71,971 66,325 91,519 94,265 97,564 100,979 104,513 108,171 111,957 115,875 FLEET MAINTENANCE 58,665 51,762 50,895 62,365 64,236 66,484 68,811 71,220 73,712 76,292 78,962 OPERATIONS 214,172 281,435 273,538 314,975 324,424 335,779 347,531 359,695 372,284 385,314 398,800 LABORATORY 75,165 75,288 73,045 77,900 80,237 83,045 85,952 88,960 92,074 95,296 98,632 PUBLIC OUTREACH 69,466 74,278 72,361 79,460 81,844 84,708 87,673 90,742 93,918 97,205 100,607 DEBT SERVICE - - - - 330,000 330,000 330,000 330,000 330,000 330,000 330,000 TOTAL EXPENDITURES/RESERVES $ 4,377,734 $ 4,716,365 $ 4,726,209 $ 5,175,181 $ 5,672,715 $ 5,869,480 $ 5,943,391 $ 6,140,070 $ 6,345,344 $ 6,557,343 $ 6,778,715 TRANSFERS TO CAPITAL PROJECTS FUND $ 900,000 $ 250,000 $ 649,308 $ 5,514,590 $ 343,003 $ 270,579 $ 150,768 $ 299,308 $ 516,956 $ 252,677 $ 469,902 INCREASE TO R.E. RESERVE $ 750,000 NET DIFFERENCE 546,109 3,283,520 59,212 (4,318,795) 416,781 496,984 758,375 639,339 451,900 760,725 589,885

ENDING GENERAL FUND BALANCE $ 6,410,539 $ 9,694,058 $ 9,753,270 $ 5,434,475 $ 5,851,256 $ 6,348,240 $ 7,106,615 $ 7,745,954 $ 8,197,854 $ 8,958,579 $ 9,548,464

CAPITAL IMPROVEMENT FUND BEGINNING FUND BALANCE - 745,567 897,650 910,186 390,981 402,981 414,981 426,981 438,981 450,981 462,981 TRANSFERS FROM GENERAL FUND 900,000 250,000 649,308 5,514,590 343,003 270,579 150,768 299,308 516,956 252,677 469,902 PROCEEDS FROM FINANCING (REAL ESTATE ACQUISITION) TOTAL RESOURCES 900,000 EXPENDITURES: 154,433 128,510 649,308 9,845,795 343,003 270,579 150,768 299,308 516,956 252,677 469,902 ENDING FUND BALANCE 745,567 897,650 910,186 390,981 402,981 414,981 426,981 438,981 450,981 462,981 474,981

COMBINED FUND BALANCE 7,156,106 10,591,708 10,663,456 5,825,456 6,254,237 6,763,222 7,533,596 8,184,935 8,648,835 9,421,561 10,023,445

Assumptions: Salaries increase by negotiated COLA through FY 21-22 and 3.5% thereafter. LT Disability, Social Security, Workers Comp, unemployment, & Compensated Absense accrual based on salary %. Medical Fringe to increase 3.0% per year. Most other expenses increase 3.0% Per Year. Retirement percentages reflect recent employer contribution cost by SamCERA. Debt service payments commences due to financing of additional property FY 22-23 Add 1 Vector Control Technicians in FY 21-22 Add 1 Operations Supervisor in FY 21-22 Facility lease payments end in FY 23-24 Unsecured Ad valorem Taxes increase 3.0% - 3.5% annually. Convert current Operations Supervisor to Operations Director in FY 21-22

General Fund (Conservative)

12,000,000

10,000,000

8,000,000

6,000,000

4,000,000

2,000,000

- FY 18-19 FY 19-20 FY 20-21 FY 21-22 FY 22-23 FY 23-24 FY24-25 FY 25-26 FY 26-27 FY 27-28 FY 28-29

Resources Expenditures Fund Balance Unassigned Fund Bal. Working Capital

Capital Projects Fund

5,000,000

4,500,000

4,000,000

3,500,000

3,000,000

2,500,000

2,000,000

1,500,000

1,000,000

500,000

Resources Expenditures Fund Balances San Mateo County MVCD Board of Trustees Meeting July 14, 2021

Agenda Item 9B INACTIVE COMMITTEES

The following committees have not met:

• Environment / Public Outreach Committee • Strategic Planning Committee • Policy Committee • Ad-hoc Real Estate Committee

Committee reports are only placed on the agenda when there is something to report. Item 10

Monthly Financial Report Month Ending May 31, 2021

Staff Recommendation: Motion to recommend approval of the May 2021 Financial Report.

Statement of Revenues, Expenditures and Change in Fund Balance Total revenues received from July 1, 2020 through May 31, 2021 (YTD) were $ 5.9 million; total expenditures YTD were $ 4.8 million; and the change in fund balance was $ 1.2million. The District had $ 10.9 million in cash available in County Treasury.

General Capital Total Fund Fund Funds Beginning Fund Balance 7/1/2020: $ 9,694,059 $ 897,648 $ 10,591,708 Revenues/Resources $ 5,943,918 $ 9,536 $ 5,953,454 Interfund Transfers $ (750,000) $ 750,000 $ - Expenditures $ 4,241,970 $ 561,045 $ 4,803,014 Change in Fund Balance 951,948 198,491 $ 1,150,439 Prior Year Adjustment (15,624) 15,624 $ - Ending Fund Balance $ 10,630,384 $ 1,111,763 $ 11,742,147

Budget Variances Revenues Actual revenues received through May 2020 were over budget by $ 551,691 resulting from increased ERAF Rebate ($210,833) , Program Revenue ($ 205,343), Property Tax Revenue ($230,938) and decreased Other Revenue ($ 94,487). Expenditures Expenditures through May 2021 were under budget by $200,700 primarily due to the timing of expenditures contained in the table below:

Over/ % of YTD Budget Category Under Variance Budget Explanation Timing of payroll (biweekly vs. monthly) also Salaries & Wages Under $120,101 95.2% late hiring of seasonal employees Employee Benefits Under $26,596 96.7% Employee Benefits less than expected Training - Board & Staff Under $32,225 31.8% Travel Restrictions due to Covid 19 Timing of HR Consultant, County accounting Administration Over $55,353 113.8% services and Audit Exp. Timing of Hardware Purchases and Licensing Computer Hardware & Software Under $40,169 60.2% expenditures Timing and savings of PG&E, Water and Utilities Under $30,353 66.0% Phone lines. Operations Under $42,365 80.6% Timing of Pesticide and Fuel Costs Capital Over $46,769 109.1% Timing of Capital Project expenditures

The Board’s budget level of control is at the category level, for example Salaries, Benefits, Admin., Operations, etc. The above table provides explanations for variances over $15,000.

Questions Please direct all inquiries related to this financial reporting package to the District Manager, Brian Weber, before the board meeting to allow for adequate research. He can be reached at the District office at (650) 344-8592 or via email at [email protected].

Approval This month’s financial statements are fairly presented. The District Manager and Finance Director approved all disbursements and the monthly bank reconciliation. A Board Officer and the District Manager signed all checks.

Attachments: 1. Statement of Financial Position/Balance Sheet

2. Statement of Revenues, Expenditures and Change in Fund Balance

3. Budget Variance Reports Month YTD YTD compared with adopted budget

4. Accounts Receivable Aging Summary On the May 2021 summary, accounts receivable outstanding greater than 90 days total is $ 1,856 mostly from amounts due from the Elephant Bar ($ 568), and City of San Francisco International Airport ($844), and Silicon Valley Clean Water ($ 443). Staff is actively pursuing collection activities.

5. Cash Activity & Reconciliation to County The District’s accounting system is fully reconciled with the County statement.

6. Payroll Disbursement All payroll disbursements were made to employees and trustees for their monthly stipends. All employees were paid per District salary and wage schedule and longevity policies.

7. Check Detail This month, the District wrote General Fund checks numbers from 20988 to 21055. Last month’s check number ended at 20987. All checks written were to vendors on account, retired employees, or reimbursements to current employees, per District policy. In May 2021, 68 checks written from the General Fund totaled $ 142,831.60. In addition, the District wrote 5 checks from the Capital Fund totaling $128,503.19 (checks numbers 1050 through 1054).

8. Purchase Card Report and Bank Statement All card purchases for the month were from commercial vendors and met the District purchase card policy. A copy of the purchase card bank statement is attached. Also, descriptions of all purchases from Amazon are included in the attached detailed purchase card transactions report.

San Mateo County Mosquito & Vector Control District Balance Sheet As of May 31, 2021 Total General Capital May 31, 21 Fund Fund ASSETS Current Assets Checking/Savings 1010 · Cash-County Treasury-GF x2706 9,724,671 9,724,671 1015 · Checking -Union Bank - GF x9757 (13,534) (13,534) 1020 · Cash-County Treasury-CPF x2705 1,225,668 1,225,668 1025 · Checking -Union Bank - CPF x6913 (100,267) (100,267) 1016 · County Funds - FMV 191,949 174,287 17,662 1030 · Petty Cash 400 400 1035 · PARS Pension Rate Stabilization 110,425 110,425 Total Checking/Savings 11,139,312 9,996,249 1,143,063 Accounts Receivable 1100 · Accounts Receivable 49,044 49,044 Total Accounts Receivable 49,044 49,044 - Other Current Assets 1106 · Other Receivable - - 1220 · VCJPA-Member Contingency Fund 503,643 503,643 1230 · Pesticide Inventory 143,930 143,930 Total Other Current Assets 647,573 647,573 - Total Current Assets 11,835,929 10,692,866 1,143,063 TOTAL ASSETS 11,835,929 10,692,866 1,143,063

LIABILITIES & FUND BALANCE Liabilities Current Liabilities Accounts Payable 2000 · Accounts Payable 93,782 62,482 31,300 Total Accounts Payable 93,782 62,482 31,300 Credit Cards 1040 · US Bank Purchase Card - - Total Credit Cards - - - Other Current Liabilities Total Other Current Liabilities - - - Total Current Liabilities 93,782 62,482 31,300 Total Liabilities 93,782 62,482 31,300 Fund Balance Beginning Fund Balance, 7/1/2020 10,591,708 9,694,059 897,648 Prior Year Adjustment Due To/From Funds - (15,624) 15,624 Interfund Transfers - (750,000) 750,000 Revenues Over Expenditures 1,150,439 1,701,948 (551,509) Ending Fund Balance 11,742,147 10,630,384 1,111,763 TOTAL LIABILITIES & FUND BALANCE 11,835,929 10,692,866 1,143,063

Page 1 of 36 Statement of Revenues, Expenditures Budget vs. Actual July 2020 through June 2021

Month of Report: Annual YTD Annual YTD YTD Monthly Monthly Monthly May, 2021 Budget Actual Variance % Budget Variance % Budget Actual Variance %

GENERAL FUND: Ordinary Revenues/Expenditures Revenues Total 4000 · PROGRAM REVENUES 2,339,000 2,326,228 (12,772) 99.5% 2,120,885 205,343 109.7% - 185,152 185,152 0.0% Total 4100 · PROPERTY TAX REVENUES 2,967,108 2,903,302 (63,806) 97.8% 2,672,364 230,938 108.6% - 248,857 248,857 0.0% Total 4200 · OTHER TAX REVENUES 470,200 596,813 126,613 126.9% 386,915 209,898 154.2% - - - 0.0% Total 4300 · OTHER REVENUES 228,756 117,576 (111,180) 51.4% 221,599 (104,023) 53.1% - 77 77 0.0% Total 4800 · GRANT REVENUE - - - 0.0% - - 0.0% - - - 0.0%

Total Revenues 6,005,064 5,943,918 (61,146) 99.0% 5,401,763 542,155 110.0% - 434,086 434,086 0.0%

Expenditures Total 5000 · SALARIES & WAGES 2,796,826 2,390,789 406,037 85.5% 2,510,890 (120,101) 95.2% 213,585 194,621 (18,964) 91.1% Total 5100 · EMPLOYEE BENEFITS 890,203 779,986 110,217 87.6% 806,582 (26,596) 96.7% 61,336 53,912 (7,424) 87.9% Total 5200 · TRAINING - BOARD & STAFF 47,500 15,025 32,475 31.6% 47,250 (32,225) 31.8% 250 256 6 102.2% Total 5300 · ADMINISTRATION 598,664 456,815 141,849 76.3% 401,462 55,353 113.8% 15,378 18,812 3,434 122.3% Total 5400 · INSURANCE 100,322 101,740 (1,418) 101.4% 100,322 1,418 101.4% - - - 0.0% Total 5450 · COMPUTER HARDWARE & SOFTWARE 114,493 60,818 53,675 53.1% 100,987 (40,169) 60.2% 3,575 10,803 7,228 302.2% Total 5500 · FACILITIES MAINTENANCE 42,000 43,531 (1,531) 103.6% 38,500 5,031 113.1% 3,500 3,875 375 110.7% Total 5550 · UTILITIES 97,315 58,852 38,463 60.5% 89,205 (30,353) 66.0% 8,110 4,109 (4,001) 50.7% Total 5600 · FLEET MAINTENANCE 60,548 49,579 10,969 81.9% 46,015 3,564 107.7% 4,183 3,987 (196) 95.3% Total 5700 · OPERATIONS 305,801 175,979 129,822 57.5% 218,344 (42,365) 80.6% 12,048 8,249 (3,799) 68.5% Total 5800 · LABORATORY 81,299 62,448 18,851 76.8% 71,190 (8,742) 87.7% 11,451 5,835 (5,616) 51.0% Total 5900 · PUBLIC OUTREACH 77,522 46,407 31,115 59.9% 58,692 (12,285) 79.1% 9,564 11,870 2,306 124.1%

Total 6500 · DEBT SERVICE - - - 0.0% - - 0.0% - - - 0.0%

Total Expenditures 5,212,493 4,241,970 (970,523) 81.4% 4,489,439 (247,469) 94.5% 342,980 316,327 (26,653) 92.2%

General Fund Net Revenues Over Expenditures 792,571 1,701,948 909,377 912,324 789,624 (342,980) 117,759 460,739

CAPITAL IMPROVEMENT FUND: Total 6000 · CAPITAL IMPROVEMENTS REVENUE - 9,536 - 0.0% - 9,536 0.0% - - - 0.0% Total 6000 · CAPITAL IMPROVEMENTS EXPENDITURES 1,010,376 561,045 449,331 55.5% 514,276 46,769 109.1% 113,828 53,765 (60,063) 47.2% Capital Improvement Fund Net Revenue Over Expenditures (1,010,376) (551,509) 458,867 (514,276) (37,233) (113,828) (53,765) 60,063 San Mateo County Mosquito & Vector Control District 05/31/2021 A/R Aging Summary As of May 31, 2021 Current 1 - 30 31 - 60 61 - 90 > 90 TOTAL BA Bar, LLC, dba Elephant Bar 0.00 0.00 30.67 0.00 568.29 598.96 City of Foster City 6,997.99 0.00 5,213.08 0.00 0.00 12,211.07 City of Pacifica Public Works Wastewater 68.98 0.00 68.98 0.00 0.00 137.96 City of Redwood City, Public Works 3,162.43 0.00 2,000.06 0.00 0.00 5,162.49 City of San Carlos 0.00 0.00 6,402.00 0.00 0.00 6,402.00 City of San Francisco, Public Utilities 183.99 0.00 199.94 1,063.68 0.00 1,447.61 City of San Mateo, Public Works 0.00 0.00 18,659.00 0.00 0.00 18,659.00 City of San Mateo, Wastewater Treatment 142.72 0.00 101.35 0.00 0.00 244.07 City of South San Francisco Water Quality 177.06 0.00 88.53 0.00 0.00 265.59 San Francisco Int'l Airport 734.02 0.00 670.83 0.00 844.37 2,249.22 San Francisco Zoological Society 0.00 0.00 424.73 0.00 0.00 424.73 Sewer Authority Mid-Coastside 68.98 0.00 68.53 0.00 0.00 137.51 Silicon Valley Clean Water 330.39 0.00 144.42 185.97 443.15 1,103.93 TOTAL 11,866.56 0.00 34,072.12 1,249.65 1,855.81 49,044.14

San Mateo County Mosquito & Vector Control District 06/24/2021 A/R Aging Summary As of June 24, 2021 Current 1 - 30 31 - 60 61 - 90 > 90 TOTAL BA Bar, LLC, dba Elephant Bar 0.00 0.00 30.67 0.00 568.29 598.96 City of San Francisco, Public Utilities 0.00 183.99 0.00 0.00 0.00 183.99 San Francisco Int'l Airport 0.00 734.02 0.00 0.00 844.37 1,578.39 Silicon Valley Clean Water 0.00 330.39 144.42 185.97 443.15 1,103.93 TOTAL 0.00 1,248.40 175.09 185.97 1,855.81 3,465.27

Page 15 of 36 San Mateo County Mosquito and Vector Control District GF-May Cash Activity & Reconciliation to County Statement 2021 General Fund May 31, 2021

Beginning Cash per District as of April 30, 2021 9,603,141

Reductions Payroll Related (ADP) (173,818) Checks Written (142,832) Bank Fee (91) Misc-Disbursements -

Total Reductions (316,741)

Additions Quarterly Interest - Abatement Services 2,594 Property Tax Revenue 248,857 ERAF Rebate - RDA/RPTTF - Special Benefit Assessment 133,612 Special Mosquito Tax 39,673 Misc-Deposits - Total Additions 424,737

Ending Cash per District as of May 31, 2021 9,711,137

Cash per County General Fund Statement 9,711,137

Difference -

Page 16 San Mateo County Mosquito and Vector Control District CPF-May Cash Activity & Reconciliation to County Statement 2021 Capital Project Fund May 31, 2021

Beginning Cash per District as of April 30, 2021 1,253,942

Reductions Checks Written (128,503) Bank Fee (38) Transfer-Out to General Fund -

Total Reductions (128,541)

Additions Quarterly Interest - Transfer-In from General Fund -

Total Additions -

Ending Cash per District as of May 31, 2021 1,125,401

Cash per County Capital Project Fund Statement 1,125,401

Difference -

Page 17 San Mateo County Mosquito and Vector Control District May ADP Payroll Disbursement 2021 May 31, 2021

May 14, 2021 May 28, 2021 Footnotes:

Payroll ACH Disbursement (including Net Pay & Taxes ) Total Net Pay 63,889 65,503 Federal W/H Tax 11,546 11,700 Social Security Tax 848 1,066 A Medicare 2,774 2,825 CA W/H Tax 4,670 4,706 CA SUI/DI 1,572 1,693 Total 85,299 87,493

ADP Process Fee PPE 4/10 & 4/24 217 275 ADP Time & Attend Implementation 535 -

Total amount for the period 86,051 87,767

Total amount for the month: 173,818

Footnotes: A. Social Security expenditure incurred for seasonal employees and Trustees stipends San Mateo County Mosquito & Vector Control District GF-May Check Detail 2021 May 2021 Num Date Name Memo Account Original Amount

20988 05/06/2021 San Mateo County Retirement Assoc. SM M.A.D. 1015 · Checking -Union Bank - GF x9757 -16,761.82

04242021 04/24/2021 Employee Contribution Pay Period 04/11/2021-04/24/2021 5115 · Retirement - Employee Contribut 6,943.43 Employer Contribution Pay Period 04/11/2021-04/24/2021 5110 · Retirement - Employer Contribut 9,818.39 TOTAL 16,761.82

20989 05/06/2021 U.S. Bank PARS Account # 6746022400 Agency Name: San Mateo County Mosquito & Vector Control District PPE 04/2 1015 · Checking -Union Bank - GF x9757 -524.07

6746022400-P04-24-2 04/24/2021 Alternate Retirement System for Richard Arrow PPE 04/24/2021 5116 · Alternate Retire-Employee Contr 524.07 TOTAL 524.07

20990 05/06/2021 ADP Screening & Selection Services Billing A/C: 1466165-8 1015 · Checking -Union Bank - GF x9757 -96.63

1466165-04-2021 04/26/2021 Background check for Seasonal (1) 5310 · Background / drug screening 96.63 TOTAL 96.63

20991 05/06/2021 Alert Door Service, Inc. Inv #99821 1015 · Checking -Union Bank - GF x9757 -90.00

99821 04/23/2021 3-Remote controls for roll-up door @ 1323 Rollins 5505 · Facility - Repairs & Maint 90.00 TOTAL 90.00

20992 05/06/2021 Cintas Corporation #464 A/C #464-07127 1015 · Checking -Union Bank - GF x9757 -544.60

464-07127 Apr2021 04/30/2021 Uniform Services 04/07/21 Inv #4080749250 5725 · Apparel - Uniforms & Boots 136.15 Uniform Services 04/14/21 Inv #4081504246 5725 · Apparel - Uniforms & Boots 136.15 Uniform Services 04/21/21 Inv #4082070977 5725 · Apparel - Uniforms & Boots 136.15 Uniform Services 04/28/21 Inv #4082736101 5725 · Apparel - Uniforms & Boots 136.15 TOTAL 544.60

20993 05/06/2021 Eppendorf North America, Inc. Customer #4100002587 1015 · Checking -Union Bank - GF x9757 -1,472.78

4001041555 04/29/2021 Pipettors for PCR Testing (PO #02706-1714) 5845 · Lab PCR Supplies 1,472.78 TOTAL 1,472.78

20994 05/06/2021 Fastenal Company Cust No. CAS180583 1015 · Checking -Union Bank - GF x9757 -10.38

CAS833316 04/14/2021 Bolts for Jeeps 5620 · Auto, Hotsy, Plug, Boat, Traile 10.38

Page 19 of 36 San Mateo County Mosquito & Vector Control District GF-May Check Detail 2021 May 2021 Num Date Name Memo Account Original Amount

TOTAL 10.38

20995 05/06/2021 Flowers Electric & Service Co., Inc. Customer #1798 1015 · Checking -Union Bank - GF x9757 -450.00

22104017 04/26/2021 Replaced 4 light fixtures 5505 · Facility - Repairs & Maint 450.00 TOTAL 450.00

20996 05/06/2021 Fusion Cloud Company, LLC Customer No. 3789973 1015 · Checking -Union Bank - GF x9757 -522.16

9302355 04/16/2021 Phone System May-2021 5570 · Phone - VOIP - Fusion/MegaPath 522.16 TOTAL 522.16

20997 05/06/2021 Life Technologies Corporation 1015 · Checking -Union Bank - GF x9757 -2,603.59

79316423 04/16/2021 PCR barcoding and testing supplies 5845 · Lab PCR Supplies 329.88 79328966 04/16/2021 PCR barcoding and testing supplies (PO#02706-1711) 5845 · Lab PCR Supplies 1,075.29 79321687 04/19/2021 PCR barcoding and testing supplies (PO#02706-1711) 5845 · Lab PCR Supplies 1,198.42 TOTAL 2,603.59

20998 05/06/2021 Luxor Floors Inc Invoice #4616 1015 · Checking -Union Bank - GF x9757 -354.93

4616 04/30/2021 Replace rubber base around cabinets in lab 5505 · Facility - Repairs & Maint 354.93 TOTAL 354.93

20999 05/06/2021 NJ Plumbing Inc Invoice #2021 1015 · Checking -Union Bank - GF x9757 -225.00

2021 04/26/2021 Removed safety shower from lab area 5505 · Facility - Repairs & Maint 225.00 TOTAL 225.00

21000 05/06/2021 San Mateo County Transit District Invoice #247AC 1015 · Checking -Union Bank - GF x9757 -50.00

247AC 04/26/2021 SamTrans Advertising Posting Fee 5/24/21-8/15/21 5910 · Media and Network 50.00 TOTAL 50.00

21001 05/06/2021 Spark Creative Design 1015 · Checking -Union Bank - GF x9757 -1,525.00

2406 04/22/2021 Pesticide label design 5705 · Pesticides 50.00 Door hanger & handouts designs 5910 · Media and Network 875.00

Page 20 of 36 San Mateo County Mosquito & Vector Control District GF-May Check Detail 2021 May 2021 Num Date Name Memo Account Original Amount

2407 04/22/2021 Life cycle & breeding sources handout designs 5910 · Media and Network 600.00 TOTAL 1,525.00

21002 05/06/2021 Standard Insurance Company 142979 1015 · Checking -Union Bank - GF x9757 -1,109.21

142979-0001 Apr21 04/19/2021 Long term disability due 05/01/2021 5165 · Long Term Disability - Standard 1,109.21 TOTAL 1,109.21

21003 05/06/2021 Vector-Borne Disease Account San Mateo Co MVCD 1015 · Checking -Union Bank - GF x9757 -2,265.00

SMATM-07-2021 04/15/2021 Re-certification for District Employeee (15) 5205 · Coastal Regional Continuing Ed. 2,265.00 TOTAL 2,265.00

21004 05/06/2021 Vision Service Plan 12 173343 0001 1015 · Checking -Union Bank - GF x9757 -466.23

812175890 04/19/2021 Vision plan - May 2021 5145 · Actives - Vision Insurance 466.23 TOTAL 466.23

21005 05/06/2021 Charles P. Hansen Retiree Health Insurance Reimb-May '21 1015 · Checking -Union Bank - GF x9757 -536.92

05012021 05/01/2021 Retiree Health Insurance Reimb-May '21 5160 · Retirees - HRA & Medical Reimb 536.92 TOTAL 536.92

21006 05/06/2021 Dennis J Jewell Retiree Health Insurance Reimb-May '21 1015 · Checking -Union Bank - GF x9757 -536.92

05012021 05/01/2021 Retiree Health Insurance Reimb-May '21 5160 · Retirees - HRA & Medical Reimb 536.92 TOTAL 536.92

21007 05/06/2021 Aim To Please Janitorial Services Invoice #26 - Nov 2020 1015 · Checking -Union Bank - GF x9757 -1,368.75

31 04/29/2021 1351 Rollins Janitorial Services-Apr 2021 5340 · Janitorial/Household Expense 1,200.00 1323 Rollins Service-Pro-rated 4/14/21 5340 · Janitorial/Household Expense 168.75 TOTAL 1,368.75

21008 05/06/2021 Airgas Dry Ice QAC40 1015 · Checking -Union Bank - GF x9757 -425.32

9112339633 04/20/2021 Dry Ice (300 lbs) 5820 · Dry Ice 212.66 9112641880 04/27/2021 Dry Ice (300 lbs) 5820 · Dry Ice 212.66

Page 21 of 36 San Mateo County Mosquito & Vector Control District GF-May Check Detail 2021 May 2021 Num Date Name Memo Account Original Amount

TOTAL 425.32

21009 05/06/2021 All Industrial Electric Supply, Inc. Customer ID 16492 1015 · Checking -Union Bank - GF x9757 -360.36

5247277 05/03/2021 LED lights for stock (6) 5505 · Facility - Repairs & Maint 360.36 TOTAL 360.36

21010 05/06/2021 Allied Administrators for Delta Dental Group No. 7918-7257 1015 · Checking -Union Bank - GF x9757 -2,369.92

07918-07257-Jun21 05/06/2021 Dental Coverage-Jun '21 5135 · Actives - Dental Insurance 2,369.92 TOTAL 2,369.92

21011 05/06/2021 American Fidelity Assurance Company Payor: 56840 1015 · Checking -Union Bank - GF x9757 -1,401.62

6001406 05/04/2021 Flexible Spending Account (Employee Contrib) 5170 · Actives - Other Benefits 1,401.62 TOTAL 1,401.62

21012 05/06/2021 Axcient Acct. No. AXH-06501 1015 · Checking -Union Bank - GF x9757 -242.76

FY21INEFI075793 05/01/2021 Server backup & storage- May 2021 5460 · Computer Hardware 242.76 TOTAL 242.76

21013 05/06/2021 City of Burlingame, Water 1015 · Checking -Union Bank - GF x9757 -896.33

53-310176-Apr21 04/27/2021 Fireline 02/23/21-04/27/21 5565 · Water 12.00 53-310184-Apr21 04/27/2021 3/4 Inch 02/23/21-04/27/21 5565 · Water 259.37 53-133346-Apr21 04/27/2021 1 1/2 Inch 02/23/21-04/27/21 5565 · Water 624.96 TOTAL 896.33

21014 05/06/2021 Clarke Mosquito Control Products, Inc. Customer # 002486 1015 · Checking -Union Bank - GF x9757 -3,821.04

5094731 04/30/2021 BG-Traps and accessories (PO #02706-1715) 5805 · Disease Surveillance 3,821.04 TOTAL 3,821.04

21015 05/06/2021 Colorprint 1015 · Checking -Union Bank - GF x9757 -3,465.54

26828 04/16/2021 Door hangers-property visit (500) 5920 · Promotion & Printing 435.81 26878 04/20/2021 Please return rectangle labels (500) 5920 · Promotion & Printing 197.10

Page 22 of 36 San Mateo County Mosquito & Vector Control District GF-May Check Detail 2021 May 2021 Num Date Name Memo Account Original Amount

26894 04/21/2021 District logo signs (2) 5910 · Media and Network 164.25 26888 04/23/2021 District logo stickers for iPads 5335 · Office Expense 54.75 26871 04/23/2021 English & Spanish internal signs for SamTrans buses 5910 · Media and Network 1,029.30 26784 04/28/2021 District Annual Reports (75) 5920 · Promotion & Printing 728.18 26953 04/29/2021 District logo signs (4) 5910 · Media and Network 328.50 26893 05/03/2021 Poison labels for pesticides labelling (1,000) 5705 · Pesticides 527.65 TOTAL 3,465.54

21016 05/06/2021 Comcast 1015 · Checking -Union Bank - GF x9757 -406.83

8155200280617079M 05/01/2021 Business Internet 05/06/21-06/07/21 (1323 Rollins Rd) 5575 · Phone - Land Line-AT&T/Comcast 99.95 8155200280283815M 05/03/2021 Business Internet 05/08/21-06/07/21 (1351 Rollins) 5575 · Phone - Land Line-AT&T/Comcast 306.88 TOTAL 406.83

21017 05/06/2021 Eco Medical Inc. Invoice #7399 1015 · Checking -Union Bank - GF x9757 -49.00

7399 04/30/2021 Bio-waste container pick-up - April 2021 5830 · Lab Biowaste Disposal 49.00 TOTAL 49.00

21018 05/06/2021 Flyers Energy, LLC Account 700895 1015 · Checking -Union Bank - GF x9757 -2,007.76

CFS-2613015 04/30/2021 Fuels 04/16/2021-04/30/2021 5735 · Fuel 2,007.76 TOTAL 2,007.76

21019 05/06/2021 Grainger 809934680 1015 · Checking -Union Bank - GF x9757 -940.15

7090910584 05/06/2021 Ops safety supply 5720 · Safety Equipment 59.75 Ops field equipment supply 5630 · Ops Equipment & Repairs 75.71 Building maint supply 5505 · Facility - Repairs & Maint 71.01 Lab supply 5825 · Lab Supplies 83.60 Garage shop supply 5610 · Garage Tools 20.77 Foam hand soap refills 5340 · Janitorial/Household Expense 191.08 Truck rear tow part 5620 · Auto, Hotsy, Plug, Boat, Traile 34.83 Pesticides for wasps 5705 · Pesticides 403.40 TOTAL 940.15

21020 05/06/2021 Quench USA, Inc. A/C #D322868 1015 · Checking -Union Bank - GF x9757 -186.14

Page 23 of 36 San Mateo County Mosquito & Vector Control District GF-May Check Detail 2021 May 2021 Num Date Name Memo Account Original Amount

INV03104754 05/03/2021 Water Dispenser Rental - May 2021 5335 · Office Expense 186.14 TOTAL 186.14

21021 05/06/2021 Target Specialty Products 1015 · Checking -Union Bank - GF x9757 -1,435.03

INVP500438370 04/21/2021 Delta Dust (1lb) 24/case (Qty: 48) 5705 · Pesticides 893.00 INVP500451894 05/05/2021 Birchmeier Sprayer (10pc) 5705 · Pesticides 542.03 TOTAL 1,435.03

21022 05/06/2021 Verizon A/C #271667168-00001 1015 · Checking -Union Bank - GF x9757 -1,636.36

9878506365 04/26/2021 Services for period 04/27/21-05/26/21 5580 · Phone - Mobile Devices-Verizon 1,636.36 TOTAL 1,636.36

21023 05/06/2021 Airgas USA, LLC Payer #3148591 1015 · Checking -Union Bank - GF x9757 -181.99

9112587169 04/26/2021 Argo tank refill for shop 5610 · Garage Tools 181.99 TOTAL 181.99

21024 05/06/2021 Mettler-Toledo Rainin, LLC Customer No. 700025193 1015 · Checking -Union Bank - GF x9757 -860.31

678595463 03/24/2021 Pipettors restocking for PCR (PO #02076-1701) 5845 · Lab PCR Supplies 860.31 TOTAL 860.31

21025 05/20/2021 Great-West Life & Annuity Co Group No. 98368 1015 · Checking -Union Bank - GF x9757 -4,969.39

05082021 05/08/2021 Employee Deferred Comp PPE 05/08/2021 5185 · Actives - Deferred Compensation 4,969.39 TOTAL 4,969.39

21026 05/20/2021 San Mateo County Retirement Assoc. SM M.A.D. 1015 · Checking -Union Bank - GF x9757 -16,761.81

05082021 05/08/2021 Employee Contribution Pay Period 04/25/2021-05/08/2021 5115 · Retirement - Employee Contribut 6,943.42 Employer Contribution Pay Period 04/25/2021-05/08/2021 5110 · Retirement - Employer Contribut 9,818.39 TOTAL 16,761.81

21027 05/20/2021 U.S. Bank PARS Account # 6746022400 Agency Name: San Mateo County Mosquito & Vector Control District PPE 05/0 1015 · Checking -Union Bank - GF x9757 -524.07

6746022400-P05-8-2 05/08/2021 Alternate Retirement System for Richard Arrow PPE 05/08/2021 5116 · Alternate Retire-Employee Contr 524.07

Page 24 of 36 San Mateo County Mosquito & Vector Control District GF-May Check Detail 2021 May 2021 Num Date Name Memo Account Original Amount

TOTAL 524.07

21028 05/20/2021 Airgas Dry Ice QAC40 1015 · Checking -Union Bank - GF x9757 -425.32

9112863145 05/04/2021 Dry Ice (300 lbs) 5820 · Dry Ice 212.66 9113113501 05/11/2021 Dry Ice (300 lbs) 5820 · Dry Ice 212.66 TOTAL 425.32

21029 05/20/2021 Amazon Capital Services Account # ARX6UTA334C06 1015 · Checking -Union Bank - GF x9757 -4,365.96

1VRR-D6HJ-1RHD 05/01/2021 Desktop monitors (2) 5460 · Computer Hardware 800.60 Miscrosoft laptop for Richard 5460 · Computer Hardware 849.70 iPad cases (8) 5460 · Computer Hardware 669.28 Shop tools or fleet maintenance 5610 · Garage Tools 507.02 Fleet maint supplies 5620 · Auto, Hotsy, Plug, Boat, Traile 174.09 Alum mesh cab rack for truck 5630 · Ops Equipment & Repairs 526.15 Trailer hitch ball mount 5630 · Ops Equipment & Repairs 388.14 Back support seat cushions (8) 5630 · Ops Equipment & Repairs 306.32 Fish tank maint. supplies 5730 · Mosquito Fish 144.66 TOTAL 4,365.96

21030 05/20/2021 American Fidelity Assurance Payor: 56840 1015 · Checking -Union Bank - GF x9757 -457.98

D314725 05/01/2021 Life/Acc/Cancer EE Insurance for May-2021 5170 · Actives - Other Benefits 457.98 TOTAL 457.98

21031 05/20/2021 Asbury Environmental Services Invoice # I500-00571237 1015 · Checking -Union Bank - GF x9757 -160.00

I500-00712211 05/12/2021 Used oil disposal service 5/3/2021 5620 · Auto, Hotsy, Plug, Boat, Traile 160.00 TOTAL 160.00

21032 05/20/2021 Autohaus Europa, Inc. 1015 · Checking -Union Bank - GF x9757 -8,471.10

202509 05/15/2021 Apr-2021 CAM & Util Reimb-1323 Rollins Rd., Burlingame,CA 5399 · Facility Lease 249.10 Jun-2021 Rent 05/19/2021 Jun-2021 Basic Rent-1323 Rollins Rd., Burlingame,CA 5399 · Facility Lease 7,944.00 Pro-rated Property Tax (17%) 5399 · Facility Lease 167.00 Pro-rated Insurance (17%) 5399 · Facility Lease 111.00 TOTAL 8,471.10

Page 25 of 36 San Mateo County Mosquito & Vector Control District GF-May Check Detail 2021 May 2021 Num Date Name Memo Account Original Amount

21033 05/20/2021 Bio-Rad Laboratories, Inc. Customer No. 1079510 1015 · Checking -Union Bank - GF x9757 -761.66

904783728 05/10/2021 PCR supplies for disease surveillance 5805 · Disease Surveillance 761.66 TOTAL 761.66

21034 05/20/2021 Colorprint 1015 · Checking -Union Bank - GF x9757 -1,754.19

26980 05/05/2021 Storyboards (16) 5910 · Media and Network 1,000.83 26860 05/05/2021 Tick removal cards (1,000) 5920 · Promotion & Printing 753.36 TOTAL 1,754.19

21035 05/20/2021 Compu-Data, Inc. Inv #63558 1015 · Checking -Union Bank - GF x9757 -140.00

63558 05/10/2021 Remote support for Richard (1hr) 5455 · IT Consulting - Compu-Data 140.00 TOTAL 140.00

21036 05/20/2021 Daniel Ferlizza Construction San Mateo County Mosquito & Vector Control 1015 · Checking -Union Bank - GF x9757 -850.00

05212021 05/07/2021 Replaced all stained/damaged ceiling tiles 5505 · Facility - Repairs & Maint 850.00 TOTAL 850.00

21037 05/20/2021 Dell Marketing LP. Customer No.: 529998218898 1015 · Checking -Union Bank - GF x9757 -1,018.17

10487361343 05/12/2021 Adobe Acrobat Pro & Creative Cloud 5465 · Computer Software 1,018.17 TOTAL 1,018.17

21038 05/20/2021 FDAC EBA 51 - SMCMVCD Jun-2021 1015 · Checking -Union Bank - GF x9757 -24,551.70

FDAC0621-SMCM 05/08/2021 Medical Insurance for Jun-2021 5125 · Actives - Medical Insurance 24,551.70 TOTAL 24,551.70

21039 05/20/2021 Flowers Electric & Service Co., Inc. Customer #1798 1015 · Checking -Union Bank - GF x9757 -961.01

22105008 05/14/2021 Outlet & recessed light install-Brian's office 5505 · Facility - Repairs & Maint 961.01 TOTAL 961.01

21040 05/20/2021 Flyers Energy, LLC Account 700895 1015 · Checking -Union Bank - GF x9757 -2,429.10

Page 26 of 36 San Mateo County Mosquito & Vector Control District GF-May Check Detail 2021 May 2021 Num Date Name Memo Account Original Amount

CFS-2631249 05/15/2021 Fuels 05/01/2021-05/15/2021 5735 · Fuel 2,429.10 TOTAL 2,429.10

21041 05/20/2021 Fusion Cloud Company, LLC Customer No. 3789973 1015 · Checking -Union Bank - GF x9757 -522.16

9323104 05/17/2021 Phone System Jun-2021 5570 · Phone - VOIP - Fusion/MegaPath 522.16 TOTAL 522.16

21042 05/20/2021 Jarvis, Fay & Gibson, LLP Invoice #15151 1015 · Checking -Union Bank - GF x9757 -4,825.00

15151 04/30/2021 Board Matters (11.6hrs) - Legal Services thru Apr-2021 5350 · Legal Services 2,900.00 Real Estate (7.7hrs) 5350 · Legal Services 1,925.00 TOTAL 4,825.00

21043 05/20/2021 Lampire Biological Laboratories, Inc. A/C # SANMAT 1015 · Checking -Union Bank - GF x9757 -269.00

423236 05/04/2021 Chicken Blood (PO# 02076-1682) 5815 · Mosquito Blood 269.00 TOTAL 269.00

21044 05/20/2021 Lenova (United States) Inc. 1015 · Checking -Union Bank - GF x9757 -2,994.41

6457340063 05/08/2021 Mobile workstation & 3yr support for drone pilot 5460 · Computer Hardware 2,762.41 6457379694 05/13/2021 Mobile workstation add'nl 2yr support for drone pilot 5460 · Computer Hardware 232.00 TOTAL 2,994.41

21045 05/20/2021 Office Depot A/C #36568593 1015 · Checking -Union Bank - GF x9757 -132.24

18229857 05/03/2021 Sign holders (13) 5335 · Office Expense 132.24 TOTAL 132.24

21046 05/20/2021 Pacific Office Automation Customer #446374 1015 · Checking -Union Bank - GF x9757 -223.83

399564 05/04/2021 Maintenance for 1 Color & 2 Blk/Wht Copiers 05/02/21-06/02/21 5380 · Copier and postage 223.83 TOTAL 223.83

21047 05/20/2021 PG&E Account No. 5584709654-6 1015 · Checking -Union Bank - GF x9757 -2,105.57

Page 27 of 36 San Mateo County Mosquito & Vector Control District GF-May Check Detail 2021 May 2021 Num Date Name Memo Account Original Amount

5584709654-6 Apr21 04/30/2021 1351 Rollins Site 03/30/21-04/28/2021 5560 · Gas & Electricity - PG&E 2,105.57 TOTAL 2,105.57

21048 05/20/2021 Public Agency Retirement Services (PARSCustomer #SAN400 1015 · Checking -Union Bank - GF x9757 -300.00

48027 05/11/2021 PARS Alternate Retirement System Fees PE 3/31/2021 5325 · HR & Finance Consultant 300.00 TOTAL 300.00

21049 05/20/2021 Purchase Power 8000-9000-0074-1201 1015 · Checking -Union Bank - GF x9757 -208.99

17662438-May21 05/14/2021 Postage refill and transaction fee 5380 · Copier and postage 208.99 TOTAL 208.99

21050 05/20/2021 Recology San Mateo County A/C #731001072 1015 · Checking -Union Bank - GF x9757 -434.66

41765371 04/29/2021 Garbage Service - Apr 2021 5340 · Janitorial/Household Expense 434.66 TOTAL 434.66

21051 05/20/2021 RMT Landscape Contractors, Inc. Customer #M332 1015 · Checking -Union Bank - GF x9757 -495.00

20210549 05/10/2021 Landscape Maintenance May-2021 5505 · Facility - Repairs & Maint 495.00 TOTAL 495.00

21052 05/20/2021 Sacramento-Yolo MVCD Customer #0000218 1015 · Checking -Union Bank - GF x9757 -237.84

0001134-IN 05/13/2021 Repellent wipes for PR handouts 5910 · Media and Network 237.84 TOTAL 237.84

21053 05/20/2021 United States Treasury EIN 94-6004102; Tax Period 9/30/2020 Form 941 1015 · Checking -Union Bank - GF x9757 -32.94

9-30-20Form941-Int. 05/10/2021 EIN 94-6004102; Tax Period 9/30/2020 Form 941 5335 · Office Expense 32.94 TOTAL 32.94

21054 05/20/2021 Yihong Gu Invoice #02 1015 · Checking -Union Bank - GF x9757 -400.00

02 05/11/2021 Brochure translation service 5910 · Media and Network 400.00 TOTAL 400.00

Page 28 of 36 San Mateo County Mosquito & Vector Control District GF-May Check Detail 2021 May 2021 Num Date Name Memo Account Original Amount

21055 05/20/2021 U.S. Bank 4246-0445-5564-6391 1015 · Checking -Union Bank - GF x9757 -8,848.05

04222021-GF 04/22/2021 District Credit Card Payment #1 of 2 1040 · US Bank Purchase Card 8,848.05 TOTAL 8,848.05

CHECK TOTAL 142,831.60

Note: Previous month's check numbers were 20920-20987. Current month's check numbers are 20988-21055 (68 checks).

Page 29 of 36 San Mateo County Mosquito & Vector Control District CPF-May Check Detail 2021 May 2021 Num Date Name Memo Account Original Amount

1050 05/06/2021 Enterprise FM Trust Customer No. 458563 1025 · Checking -Union Bank -CPF x6913 -3,602.39

FBN4197168 05/02/2021 22MZZS-2018 NISS Frontier- May 2021 6030 · Vehicle Leases 330.87 22NCN8-2018 NISS Frontier 6030 · Vehicle Leases 298.15 22NCNB-2018 NISS Frontier 6030 · Vehicle Leases 298.15 22NCNF-2018 NISS Frontier 6030 · Vehicle Leases 298.15 22NCNJ-2018 NISS Frontier 6030 · Vehicle Leases 298.15 23CDWF-2020 Subaru Forester 6030 · Vehicle Leases 318.27 23LVXF-2019 NISS Frontier (Kim) 6030 · Vehicle Leases 405.13 23LW6S-2019 NISS Frontier (Aedes) 6030 · Vehicle Leases 454.81 23MVV2-2020 NISS Frontier 6030 · Vehicle Leases 394.78 23MVW2-2020 NISS Frontier 6030 · Vehicle Leases 394.78 23MVW3-2020 NISS Frontier 6030 · Vehicle Leases 394.78 23MVW8-2020 NISS Frontier 6030 · Vehicle Leases 392.37 23MVW8-2020 NISS Frontier-License Fee Credit 6030 · Vehicle Leases -612.00 Toll Mis-billed Credits 6030 · Vehicle Leases -64.00 TOTAL 3,602.39

1051 05/06/2021 Solar Technologies Progess Billing #1-Solar Installation Project 1025 · Checking -Union Bank -CPF x6913 -100,266.80

Progress #1 04/29/2021 Progess Billing #1-Solar Installation Project 6010 · Building Improvements 100,266.80 TOTAL 100,266.80

1052 05/20/2021 Geosyntec Consultants, Inc. Invoice 16434787 1025 · Checking -Union Bank -CPF x6913 -23,272.85

16434787 05/13/2021 Environmental Investigation-1415 N. Carolan-Services thru 4/30/2021 6005 · Real Estate Acquisition 23,272.85 TOTAL 23,272.85

1053 05/20/2021 Partner Engineering & Science, Inc. Inv #20-303601-2; Property: 1415 N Carolan Ave, Burlingame 1025 · Checking -Union Bank -CPF x6913 -956.00

20-303601-2 02/16/2021 Zoning report & verification letter 6005 · Real Estate Acquisition 956.00 TOTAL 956.00

1054 05/20/2021 U.S. Bank 4246-0445-5564-6391 1025 · Checking -Union Bank -CPF x6913 -405.15

04222021-CPF 05/20/2021 District Credit Card Payment #2-B&H Photo 1040 · US Bank Purchase Card 405.15 TOTAL 405.15

Page 30 of 36 San Mateo County Mosquito & Vector Control District CPF-May Check Detail 2021 May 2021 Num Date Name Memo Account Original Amount

CHECK TOTAL 128,503.19

Note: Previous month's check numbers were 1046-1049. Current month's check numbers are 1050-1054 (5 checks).

Page 31 of 36 San Mateo County Mosquito & Vector Control May Credit Card Transaction Detail by Account 2021 May 2021 Type Date Num Name Memo Split Amount

1040 · US Bank Purchase Card 1045 · US Bank Visa Brian x8037 Credit Card Charge 04/26/2021 242697 Misc-Admin Rise Pizzeria-Admin Appreciation Lunch (Brian, Casey, Mary, Devina) 5335 · Office Expense 85.42 Credit Card Charge 04/27/2021 249064 B&H Photo Case for DJI Phantom 4 RTK Drone 6020 · Equipment - Operations & Admin 535.46 Credit Card Charge 05/03/2021 249064 B&H Photo DJI Phantom 4 RTK Drone 6020 · Equipment - Operations & Admin 6,449.55 Credit Card Charge 05/04/2021 246921 Costco 65"' TV & Mount for Brian's Office 5460 · Computer Hardware 1,248.10 Credit Card Charge 05/06/2021 Better-Bkpr Misc-Admin Better Bookkeepers-QBooks Consulting 5325 · HR & Finance Consultant 102.03 Credit Card Charge 05/14/2021 244921 Docusign E-Signature Standard Edition Subscription 5465 · Computer Software 206.30 Credit Card Charge 05/18/2021 246921 Intuit QuickBooks 2021 Premier Download (3 Users) 5465 · Computer Software 1,399.99 Total 1045 · US Bank Visa Brian x8037 10,026.85 1050 · US Bank Visa Admin x3805 Credit Card Charge 04/24/2021 244310 Amazon.com Sunblock & repellent for tick surveys 5805 · Disease Surveillance 420.26 Credit Card Charge 04/26/2021 240113 Gaia GPS GAIA GPS Annual Membership 5805 · Disease Surveillance 19.99 Credit Card Charge 04/26/2021 SourceNAmer Misc- Ops Source North America-Hose retractors for BVA pumps 5630 · Ops Equipment & Repairs 621.90 Credit Card Charge 04/27/2021 242042 Microsoft Windows 10 Pro Upgrade for Richard 5465 · Computer Software 99.00 Credit Card Charge 04/27/2021 240113 Target Specialty Products Cockroach training course for staff (16) 5220 · Staff Training 160.00 Credit Card Charge 04/27/2021 246921 Amazon.com Sprayers for pesticides 5705 · Pesticides 41.61 Credit Card Charge 04/28/2021 243773 Bayshore Transmissions Transmission repair on Jeep #34 5615 · Garage Repairs Outside 472.20 Credit Card Charge 04/29/2021 246921 Amazon.com Workboots for ops staff 5725 · Apparel - Uniforms & Boots 65.65 Credit Card Charge 04/29/2021 SourceNAmer Misc- Ops Source North America-Hose clamps for BVA pumps 5630 · Ops Equipment & Repairs 48.86 Credit Card Charge 05/02/2021 ProMega Misc-Lab ProMega Corp-GreenGo Taq for PCR 5845 · Lab PCR Supplies 510.19 Credit Card Charge 05/04/2021 240095 Scholastic Educational materials for school and public outreach events 5910 · Media and Network 182.34 Credit Card Charge 05/04/2021 240113 Mosyle Business Manage Apple iPads & Mac-May '21 Subscriptn 5465 · Computer Software 27.50 Credit Card Charge 05/04/2021 JollyStore Misc- Outreach Crafts supply for children outreach program 5910 · Media and Network 63.02 Credit Card Charge 05/04/2021 246921 Fisher Scientific PCR supplies 5845 · Lab PCR Supplies 155.69 Credit Card Charge 05/05/2021 Chewey.com Misc- Ops Chewy.com-Fish food for mosquito fishes 5730 · Mosquito Fish 44.91 Credit Card Charge 05/05/2021 246921 Michaels Craft supplies for children ourtreach program 5910 · Media and Network 183.92 Credit Card Charge 05/07/2021 240552 Walmart Insect repellent wipes for public education 5910 · Media and Network 189.82 Credit Card Charge 05/07/2021 JoannStores Misc- Outreach JoAnn Stores-Supply to fix canopy tents 5910 · Media and Network 19.56 Credit Card Charge 05/07/2021 244921 Misc- Outreach Eurmax Canopy-Parts to attach the banners to the canopy tent 5910 · Media and Network 54.20 Credit Card Charge 05/07/2021 246921 Costco Misc office supplies 5335 · Office Expense 249.11 Janitorial cleaning & paper supplies 5340 · Janitorial/Household Expense 190.00 Credit Card Charge 05/07/2021 2469231 Michaels Supply for material displays during outreach events 5910 · Media and Network 21.32 Credit Card Charge 05/09/2021 244309 Microsoft MS Office PBI for Managers (6Lic) 5475 · Website Hosting / Microsoft 59.94 Credit Card Charge 05/09/2021 244309 Microsoft MS Off Bus Basic Online Emails (21 Lic) 5475 · Website Hosting / Microsoft 110.50 Credit Card Charge 05/09/2021 244309 Microsoft MS Off 365 Bus Standard Online Emails-Mgrs (6Lic) 5475 · Website Hosting / Microsoft 75.00 Credit Card Charge 05/10/2021 244309 Microsoft Microsoft Exchange Online Emails (Plan 1) (32 Lic) 5475 · Website Hosting / Microsoft 128.00 Credit Card Charge 05/11/2021 Adam-Hill Misc- Ops Adam-Hill-Fittings for BVA pumps 5630 · Ops Equipment & Repairs 98.51

Page 32 of 36 San Mateo County Mosquito & Vector Control May Credit Card Transaction Detail by Account 2021 May 2021 Type Date Num Name Memo Split Amount

Credit Card Charge 05/12/2021 246921 UPS UPS shipping cost for repellent wipes from Sac-Yolo to SMCMVCD 5910 · Media and Network 26.67 Credit Card Charge 05/12/2021 Cray Cleane Misc- Outreach Cray Cleaners-Proff cleaning of the canopy tent 5910 · Media and Network 40.00 Credit Card Charge 05/13/2021 JoAnnStores Misc- Outreach Fabrics for outreach bags, tablecloths & displays 5910 · Media and Network 114.64 Credit Card Charge 05/13/2021 Electro-opt Misc- Outreach Elctro-Optix-Educational materials for outreach events 5910 · Media and Network 336.30 Credit Card Charge 05/13/2021 246921 Peninsula Feed Chicken coop feeds 5810 · Sentinel Chicken Flocks/Supply 90.96 Credit Card Charge 05/14/2021 Moment inc Misc- Outreach Moment-Recording equipment for outreach materials 5910 · Media and Network 295.37 Credit Card Charge 05/14/2021 Flourish Misc- Outreach Flourish Co-Mesh panels for displays at public outreach events 5910 · Media and Network 790.00 Credit Card Charge 05/14/2021 243230 Misc- Ops Boss Safety Prod-Hard shell case to protect black lights 5910 · Media and Network 256.17 Credit Card Charge 05/14/2021 Lakeshore Misc- Outreach Lakeshore Learning-Educ materials for school & outreach events 5910 · Media and Network 412.02 Credit Card Charge 05/18/2021 242042 Mailchimp Bulk mail service subscription 5910 · Media and Network 30.99 Credit Card Charge 05/18/2021 240113 UAS.FAA Drone Zone Drone Registration for DJI Phantom 4 RTK 5630 · Ops Equipment & Repairs 5.00 Credit Card Charge 05/18/2021 242042 Ebay Decals to number DJI drone batteries 5630 · Ops Equipment & Repairs 9.86 Credit Card Charge 05/18/2021 BayWatch Misc-Admin Food for Manager's Training 5215 · Conferences / Workshops Staff 96.59 Credit Card Charge 05/18/2021 242316 Safeway Store Refreshments for Manager's Training 5215 · Conferences / Workshops Staff 7.98 Credit Card Charge 05/18/2021 246392 Genesee Scientific PCR Supply-APEX Taq RED Master Mix 5845 · Lab PCR Supplies 228.78 Credit Card Charge 05/19/2021 244921 Zoom Standard Pro Monthly Subscription (2 Lic) 5465 · Computer Software 29.98 Total 1050 · US Bank Visa Admin x3805 7,084.31

TOTAL 1040 · US Bank Purchase Card 17,111.16

Page 33 of 36

Agenda Item 11.A. - Operations Staff Program Reports Field Operations in June 2021

Summer Mosquito Control on Bair Island San Mateo County is fortunate to contain a portion of the Don Edwards San Francisco Bay Wildlife Refuge. This area, called Bair Island, is home to several threatened and endangered wildlife species. In coordination with U.S. Fish and Wildlife Service, District staff monitor a 240-acre section of Bair Island year-round for mosquitoes. These species include the Aedes squamiger (California salt marsh mosquito) and another summer salt marsh mosquito called Aedes dorsalis. In the summertime, one might expect this island to remain dry, but due to extremely high tides that occur throughout the summer, areas of the island become flooded with water. This impounded water will often produce mosquito larvae. When these extreme tides occur, District staff inspect the island and treat the areas where mosquito larvae are found.

If these areas are left untreated, salt marsh mosquitoes can emerge in huge numbers. Aedes squamiger has a flight range of up to 20 miles. Although some rare pathogens, including California Encephalitis virus and Morrow Bay virus, have been found in these mosquito species, these diseases are not known to be present in San Mateo County. The District places a high priority on control of these species, as their aggressive daytime biting will cause high numbers of service requests.

Left: Portion of Bair Island that was dry during an initial inspection. Right: On a return visit, an area of Bair Island holds water and breeds mosquitoes from a series of extremely high tides. In the summertime, these mosquitoes can go from egg to adult in less than 10 days (about one-and-a-half weeks).

Agenda Item 11.A. - Operations Staff Program Reports Staff Training Throughout the year District staff participate in a robust training program ranging from pesticide safety to learning how to properly drive a boat. The District places a high priority on providing staff with up-to-date training on best practices to safely operate the equipment they use every day. In April, Operations and Laboratory staff completed a tool safety training session on how to select appropriate tools and personal protective equipment for several types of work. The tool training took about two hours, and included a Power Point session, live demonstrations and a 20-question quiz.

In May, Vector Control Technician Eric Eckstein and Mechanic Sean Jones conducted training on the District’s storm drain mister. This specialized equipment is used to control mosquitoes in the subterranean habitats that run beneath city streets. Eric described the mosquito species targeted by this technique, the application rates, and the required personal protective equipment in a Power Point slide show. Sean followed up Eric’s presentation with a live demonstration on safe use of the storm drain mister and cleaning procedures to ensure the equipment will run as efficiently as possible. Additional topics scheduled for District staff training include ladder safety and best practices for traversing marsh environments to minimize ecological impact in sensitive habitats.

Photos from Safety Training: On the left, a tool expert from DeWalt explains how to safety use tools such as trimmers and chainsaws. On the right, Mechanic Sean Jones provides a live demonstration to staff on how to operate a storm drain mister.

Agenda Item 11.A. - Operations Staff Program Reports

June 2021 Service Requests

Type of Request June 2021 5-year average Yellowjackets and wasps 174 151 Mosquito 85 119 Rodents 42 36 Mosquito fish 29 14 Insect identification 12 14 Dead birds 7 18 Wildlife 3 6 Other 12 16 Total 364 377

This table contains the number of each type of service request in June 2021 compared to the five-year average in June. The total number of service requests is close to average for this month (364 compared to an average of 377). Yellowjacket and other wasp requests increased dramatically this past month, from 34 in May to 174 in June. Yellowjacket and wasp requests are common in the summer and will likely remain numerous until the weather cools in autumn. The number of mosquito service requests remains lower than average, likely due to a low abundance of Culex pipiens, which usually prompts the most mosquito requests. Dead bird requests are lower than average as well, in line with the slow start of West Nile virus season statewide. West Nile virus was not detected in the San Francisco coastal region this year through the month of June. The category of “other” included a variety of request types, such as honeybees and bumblebees, fleas and ticks.

Agenda Item 11.B. – Laboratory Staff Program Reports Lab Activities in June 2021

VectorSurv Risk Assessment Maps

This season the District is utilizing West Nile virus risk surface maps created by VectorSurv, a collaboration between the Mosquito and Vector Control Association of California, the California Department of Public Health, and the Davis Arbovirus Reasearch and Training Lab at UC Davis. These maps incorporate environmental conditions and mosquito and disease surveillance data submitted by local districts into a statewide database. A risk assessment model combines these variables to show color-coded areas of various risk for each week of the year on a map.

The factors used to calculate risk are temperature, mosquito abundance, WNV positive mosquito pools, WNV infected sentinel chickens, and WNV positive dead birds. These values are combined to derive an overall risk level. The overall risk falls into three categories: normal season (yellow), emergency planning (orange), and epidemic (red). The map shows the levels of overall risk by color, as long as there is sufficient data for the area. The map updates weekly to incorporate the latest data.

These maps can inform District staff about areas of the County that are more likely to have West Nile virus activity. With this knowledge, additional surveillance can be conducted in specific locations that have higher overall risk. It also provides and indication to the District operations department when enhanced mosquito control activities might be needed.

The map at right is the VectorSurv West Nile virus risk surface map for the week ending June 26, 2021. San Mateo County is outlined in green. At this time, all county areas with mosquito trap data for that week is in “normal season” which is the lowest risk for WNV

Yellow – normal season

Orange – emergency planning

Red – epidemic (none in this map area)

Agenda Item 11.B. – Laboratory Staff Program Reports

Tick Surveillance for Water Year 2020-2021 During June, laboratory staff conducted tick surveillance at Stulsaft Park, Edgewood County Park, Los Trancos Open Space Preserve (OSP), Coal Creek OSP, Skyline Ridge OSP, Costanoa, and Butano State Park. In addition to normal surveillance, some of these collections were part of research collaborations.

Habitat Fragmentation Study

The District is collaborating with San Francisco State University’s tick borne disease specialist Dr. Andrea Swei. Dr. Swei’s research focuses on the ecology of Borreliae (including Borrelia burgdorferi, the bacteria that causes Lyme disease). The Swei lab (with the support of the District) was awarded a 2021-2022 Pacific Southwest Center of Excellence in Vector- Borne Diseases Training Grant for a graduate- led project titled “Habitat connectivity and transmission dynamics of tick-borne diseases.”

Habitat fragmentation can occur when an open space is divided by roads, railways, dams, and other infrastructure that may prevent animals from moving around freely. This fragmentation can also affect waterways, sedimentation, and nutrient availability, all of which could impact the distribution of animals, ticks, and tick-borne diseases. San Mateo Ticks were collected for the Swei Laboratory from areas of high habitat connectivity (Coal County is an ideal location for this research Creek, Los Trancos, Skyline), as well as in more because it has both connected open space fragmented habitats (Edgewood, Stulsaft). and smaller, fragmented parks surrounded by housing. As part of this project, District lab staff sampled five county locations for nymphal ticks (see map). A total of 1,570 ticks were collected. This is the District’s third collaboration with the Swei Laboratory on grant-funded projects.

Haemaphysalis Research

In June, District staff also collected and contributed ticks for a project led by by Dr. Andrea Egizi, a Research Scientist with the Monmouth County Mosquito Control Division/Tick-borne Disease Laboratory at Rutgers University in New Jersey. Dr. Egizi is examining the morphology Agenda Item 11.B. – Laboratory Staff Program Reports

and genetics of North American Haemaphysalis ticks. One species of Haemaphysalis, the rabbit tick (H. leporispalustris) is found in parts of San Mateo County.

Rabbit ticks rarely bite humans and do not transmit Lyme disease, but are occasionally collected in District tick surveys. Rabbit ticks have been found to carry Rocky Mountain spotted fever and tularemia but, due to the strong preference to feed on rabbits, the risk of disease transmission to humans from this tick is very low. The District’s laboratory contributed 93 rabbit ticks from three life stages (larvae, nymph, adult) for this project.

Rabbit ticks (H. leporispalustris). From left: adult female, adult male, nymph, and larva

West Nile Virus Update

The District collects and tests dead birds reported by residents. Dead birds should be in good condition without signs of decay or trauma. All bird species are accepted except water fowl, poultry or pigeons.

To report a dead bird, residents should call the California state West Nile virus hotline at 1-877- WNV-BIRD (1-877- 968-2473). Online reports can be made at westnile.ca.gov.

San Mateo County

As of June 30, 2021, there have been 165 dead birds reported in San Mateo County. Of those, 51 have been suitable for testing and all have tested negative for West Nile virus (WNV). No mosquito pools or sentinel chickens have tested positive for West Nile virus in San Mateo County in 2021.

Agenda Item 11.B. – Laboratory Staff Program Reports

California

Statewide, 2,732 dead birds have been reported and 739 have been tested with 27 positive results (4%). At this time last year, ten dead birds had tested positive. This is low compared to a five-year average of 69 positive dead birds at this date. So far in 2021, 54 mosquito samples have tested positive for West Nile virus from nine counties. This is slightly lower than last year at this time, when 65 positive mosquito samples had been reported from nine counties. No human cases or positive sentinel chickens have yet been reported in California.

CO2 Traps – Average adult mosquitoes collected per trap per night

The following table and graph show the average number of mosquitoes collected per CO2 trap per night during the month of June compared to the five-year average for the six most common mosquito species in San Mateo County. Culex erythrothorax, a mosquito that breeds in lakes and ponds with tules, was the most frequently collected mosquito in June. The high number of tule mosquitoes this month reflects a large, earlier-that-normal seasonal emergence of this species in Pacifica. Adults of this species are usually present from around April through October. Seasonal helicopter treatments for this mosquito begin in July. Mosquito abundance overall has increased in June but counts of Culex pipiens, the northern house mosquito and typically the most abundant mosquito in San Mateo County, remain below average for this time of year.

Species June 2021 5-year June average Culex erythrothorax 14.91 2.17 Culex pipiens 4.92 13.07 Culiseta incidens 1.73 1.82 Aedes washinoi 1.50 1.21 Aedes sierrensis 0.70 0.57 Culex tarsalis 0.30 0.91 Agenda Item 11.B. – Laboratory Staff Program Reports

Average number of adult mosquitoes collected in CO2 traps per trap per night night during 2021. The graph shows the six most common species of mosquitoes that are collected in traps in San Mateo County.

Average number of adult mosquitoes collected in CO2 traps per trap in one night (average over prior five years). The graph shows the six most common species of mosquitoes that are collected in traps in San Mateo County.

Agenda Item 11.B. – Laboratory Staff Program Reports

Mosquito Larval Samples During the summer months, mosquito larval samples from seasonal impounds decline. Summer samples are often collected from residential areas, such as backyard fountains and fish ponds, water under buildings, storm drains, other containers in yards, and treeholes. Some are also collected from pockets along creeks. This June there were 72 larval samples submitted to the laboratory. The most frequently occurring species in larval samples was Culiseta incidens, the cool weather mosquito, present in 38 of the 72 larval samples. This mosquito is found year- round in a variety of sources, especially backyard fountains and fish ponds. It is not known to transmit diseases. Culex pipiens, the northern house mosquito, was also collected frequently this past month, present in 33 of the 72 samples. This is the most common mosquito in San Mateo County, is a vector of West Nile Virus, and is found year-round. While the laboratory only identified 33 samples with Culex pipiens, the District expects this mosquito to be more abundant than represented here. Culex pipiens often breed in sources that are difficult to sample, such as underground basins and drainlines. District seasonal staff are currently hard at work, treating catch basins across the county in order to control mosquito populations.

Number and percentage of larval samples containing each mosquito species collected in larval samples in June 2021. Larval samples commonly contain multiple species. Agenda Item 11.C. Staff Program Reports

Public Health Education and Outreach in June 2021

Website metrics, June newsletter, and Service Request survey responses

Website and Newsletter • In June 2021, the District transitioned web platforms from Digital Deployment to Streamline. Streamline platform offers several advantages: o Languages other than English (via built-in Google translate page translator), which increases the number of SMC residents able to engage with our website content and services. Did you know that an estimated 45% of the SMC population speaks a language other than English at home? (ACS 2019 data) o A more modern mobile website experience (over 50% of website visitors access via mobile device) o More agile compliance with Brown Act requirements and Section 508 standards o Easier management of website content with a more intuitive and efficient back-end content management system • In June 2021, there were 4,300 visits to the District website (‘sessions’), an decrease of 31% compared to May 2021. This is likely due to the website transition from Digital Deployment to Streamline, and resulting renaming of links, redirects, and previous visitors’ computers adjusting to the new domain and link naming conventions. Broken links and redirects are expected to be resolved over time. At this time, all visitors to a broken link at our smcmvcd.org domain will have the option to click to visit the new hosting location. • Revisions and updates to the website are ongoing. • Top 5 pages in June 2021: 1. Home page 2. Other mosquito-like insects 3. Differences between midges and mosquitoes 4. Biting mites 5. Request for Services • June 2021 newsletter email campaign had 1,673 recipients, 37% opened, 3% clicked a link

Resident Comments after Service Request Completion • “The young man that inspected my property was so kind and explained every step of the inspection." • “I am so glad that this service exists and find it very helpful.” • “San Mateo County Mosquito and Vector Control is fantastic! Every person I know thinks the service is great and we are very grateful to you.”

Outreach and Activities • Information about ticks was requested by Midpeninsula Open Space Preserve to add to their website. Staff collaborated on a document containing information to share, including new tick photos from CDPH. • A post by the District on Nextdoor reminded people living in San Mateo County to report dead birds to the WNV hotline. Agenda Item 11.C. Staff Program Reports

• An educational booth about District services was displayed in the exhibit building during the week of the San Mateo County Fair. A statement from the exhibit coordinator read: o I join with the management of the San Mateo County Fair in thanking you for having an informational display at this year’s Fair. Though the restrictions for public gatherings changed several times over the months of preparation, a close approximation of our yearly Fair was able to be open at our designated June date to an enthusiastic public. Your acceptance of the invitation to participate not only provided an attractive display, but one which was eagerly noticed by the public which seemed more ‘hungry’ for information than I had observed in any year before. The ‘give-away goodies’ were appreciated and I do thank you for monitoring and supplementing them as they disappeared; though, people were also reading the informational brochures and talking with their friends and especially children about the "bugs". After last year’s disappointing need to cancel the 2020 Fair, it was a tribute to all who took part that our 2021 Fair was the first in the state to open and the largest and only summer fair in the Bay Area this summer. Your display provided interest and information which enhanced the whole area . . . . . and, we hope you will choose to participate again next year. Thank you for your interest and support.

Agenda Item 11.D. – Information Technology Staff Program Reports

Information Technology Activities in June 2021

Website Go-Live Support, Back-Up System Review, Cloud Security Training

Summary  Assistance with District Website Transition  Back-Up System Review  Cloud Security Training  Anti-Phishing Awareness Training

District Website Transition Working alongside the Public Health Education and Outreach (PHEO) team, the District Information Technology (IT) team provided backend, “behind-the-scenes”, assistance for the transition from the former website, hosted by Digital Deployment, to the new website, hosted by Streamline, a sister agency to Digital Deployment specializing in special districts. Pointing the worldwide website pointers – technically referred to as Domain Name Servers (DNS) – required a few changes in the “pointers” and a few days for all of the global DNS to refresh their “pointers” for the District website. Any users that are still being directed to the District’s former website can contact the District for assistance.

Back-Up System Review Following a Municipal Information Systems Association of California (MISAC)-organized case study presentation, the District conducted a review of current solutions in the market and its own backup system. Based on the review, the District is due for an upgrade to its backup and recovery system, for which the IT team will be looking into solutions in the coming months.

Cloud Security Training The District IT Director participated in a bootcamp training in June 2021 for cloud security. The cloud security training covered topics from the International Information System Security Certification Consortium’s (ISC)2 Certified Cloud Security Professional (CCSP) program, ranging from Cloud Architecture to Data Security to legal and compliance considerations. The course focused predominantly on management-level areas for cloud security, which will help the District with understanding contract language with cloud service vendors, such as service level agreements, security certifications, and compliance, where applicable. Agenda Item 11.D. – Information Technology Staff Program Reports

Anti-Phishing Awareness Training Among the various areas of methods to prevent computer viruses and ransomware from affecting the District, District staff, District trustees, and those with whom the District conduct business, user awareness training has been repeatedly cited as one of the most important tools against phishing – an Internet- based term derived from the idea of electronically “fishing” unsuspecting individuals for information and/or access to computer and server systems – and malware (which includes viruses and ransomware). As phishing attempts have significantly increased, and increased in sophistication to evade cloud-based and endpoint (desktop and laptop computers) antivirus applications, the District must rely on its staff and trustees to stay vigilant. One program the District will be implementing next month will be awareness training, the details for which will be forthcoming.

References: Streamline [https://www.getstreamline.com/about-us]

(ISC)² Cloud Security Training [https://www.isc2.org/Training/Courses/ccsp-training-course]

Ransomware: What It Is and What To Do About It. Department of Homeland Security United States Computer Emergency Readiness Team (US-CERT) [https://us- cert.cisa.gov/sites/default/files/publications/Ransomware_Executive_One- Pager_and_Technical_Document-FINAL.pdf] RESOLUTION M-008-21

IN HONOR AND REMEMBRANCE OF CLAUDIA MAZZETTI OF THE BOARD OF TRUSTEES OF THE SAN MATEO COUNTY MOSQUITO & VECTOR CONTROL DISTRICT

Trustee from January 2018 to May 2021

WHEREAS, Claudia Mazzetti was appointed to the Board of Trustees of the San Mateo County Mosquito and Vector Control District in January 2018, representing the County at large; and

WHEREAS, Claudia Mazzetti generously gave of her time and energy to the County of San Mateo and the District Board, serving on the Board’s Strategic Planning, Policy, and Environmental/ Public Outreach Committees; and

WHEREAS, as a member of the Environmental/ Public Outreach Committee, Claudia Mazzetti conducted herself in a positive, constructive and professional manner which resulted in the Board approving the first Programmatic Environmental Impact Report and Integrated Mosquito and Vector Management Plan; and

WHEREAS, her strong leadership helped the Board uphold the highest standards of transparency and accountability to the public, resulting in the District being awarded the Transparency Certificate of Excellence and Accreditation as a District of Distinction by the California Special District Leadership Foundation.

NOW THEREFORE BE IT PROCLAIMED, this 14th day of July in the year 2021, that the Board of Trustees of the San Mateo County Mosquito and Vector Control District appreciates and commends Claudia Mazzetti for her over three years as a Trustee and her service to the community and District, considers it a privilege to have served with her, and recognizes a great community contributor was lost too soon.

ADOPTED, this 14th day of July 2021

Kati Martin, Board President Donna Rutherford, Board Secretary

San Mateo County MVCD Board of Trustee Meeting

July 14, 2021

Agenda Item 13

SUBJECT: Consider deferring to the Policy Committee the use of a hybrid model meeting under certain circumstances

SUMMARY

The Board held its last regular in-person meeting on March 11, 2020. Since that time, numerous actions were taken by Federal, State and Local government agencies to respond to the COVID 19 pandemic, including, allowing government officials and Boards to attend meetings electronically. Many have cited benefits to attending public meetings using Zoom and other electronic media such as increased transparency, increased attendance and existence of a video recording where one did not exist previously. BACKGROUND AND STATUS

As we begin to return to normal operations, discussions have been brought up as to whether aspects of virtual meetings should be kept once the pandemic is over. The two main questions the Board may want to consider are: Does the Board want to allow for attendance using electronic media? And, if so, for whom?

Some considerations could be allowing:

• The public to attend remotely • District consultants to attend remotely • Committee meetings to occur remotely • Board members to attend remotely

RECOMMENDATION

Have the Board direct the Policy Committee to review the circumstances under which the Board would allow individuals to attend Board and Committee meetings using electronic media and recommend policy changes as appropriate.

San Mateo County MVCD Board of Trustee Meeting

July 14, 2021

Agenda Item 14

ATTENDANCE AT THE CSDA LEADERSHIP ACADEMY

SUBJECT: Trustee attendance at the Leadership Academy of the California Special District Association Meeting in Lake Tahoe, CA

All Board members need to consider attending the Leadership Academy of the California Special Districts Association (CSDA) from September 26, 2021, through September 29, 2021, to comply with the CSDA District of Distinction Accreditation requirements.

The annual Leadership Academy of the CSDA will be held in South Lake Tahoe September 26- 29, 2021. This conference content is based on groundbreaking, curriculum-based continuing education in CSDA’s Special District Leadership Academy (SDLA), recognizing the necessity for the Board and General Manager to work closely toward a common goal. SDLA provides the knowledge base to perform essential governance responsibilities and is designed for both new and experienced special district board members. Further information on the conference is available at 2021 Special District Leadership Academy Lake Tahoe.

This event must be attended by more than half of the SMCMVCD Board to keep the CSDA District of Distinction Accreditation. The District’s FY 2021-22 budget includes funds for all trustees to attend this conference virtually and some in-person if they wish to do so. San Mateo County MVCD Board of Trustees Meeting July 14, 2021

Agenda Item 15

MANAGER’S REPORT

Legislative update

Funding for CalSurv

On April 6, 2021, San Mateo County MVCD with direction from the Mosquito and Vector Control Association of California (MVCAC) lobbied for state funding of $1.5 million to finance the California Vectorborne Disease Surveillance Gateway (CalSurv Gateway). CalSurv Gateway is an online interactive platform that provides tools for real-time collection, visualization, and analysis of data on vector-borne diseases. The system curates local and statewide data that enables 81 mosquito and vector control and public health agencies in California to make informed decisions on public health interventions to prevent the spread of mosquito-borne diseases. CalSurv is an invaluable tool in the fight against mosquito-borne disease and provides a unified platform that:

• Enables state and national reporting and risk assessment • Turns data into evidence for public-health decision-makers • Supports cutting-edge research

Through support from Assemblyman Quirk, an allocation of $1 million has been assigned to fund CalSurv. Without this support, the loss of CalSurv was imminent putting public health at risk.

Request to Combat Mosquito Borne Diseases - American Mosquito Control Association (AMCA)

The AMCA is requesting $100,000,000 add to Centers of Disease Control’s National Center for Emerging and Zoonotic Infections Diseases for Mosquito-Borne Diseases; Coordination Grants to States; Assessment and Control Grants to Political Subdivisions as authorized through the Strengthening Mosquito Abatement for Safety and Health (SMASH) provisions in the All-Hazards Preparedness and Advancing Innovation Act, PL 116-22.

During the COVID-19 pandemic, the CDC and the Environmental Protection Agency (EPA) issued a joint report recommending the continuation of mosquito control efforts “… during non-mosquito related public health emergencies and natural disasters” to emphasize the importance. However, a National Association of County & City Health Officials survey of

1 | Page San Mateo County MVCD Board of Trustees Meeting July 14, 2021 vector control programs, including mosquito programs, reported 84 percent need improvement in meeting CDC standards of competency. The key culprit in the failure to meet core competency measures is lack of funding to local public health mosquito control efforts. Mosquito control and abatement boards tend to be funded through local taxes and assessments. Unfortunately, in communities with low socio-economic demographics, funding for this purpose is often extremely limited or non-existent creating a greater susceptibility to mosquito borne diseases and health disparities for its populations.

Although this funding will likely not find its way to the San Mateo County Mosquito and Vector Control District, the finds by the CDC and EPA show how important our support is for the remainder of the country.

Real Estate Update

The seller of 1415 N. Carolan Ave has exercised their second extension whereby the new closing date is July 20, 2021. The seller can exercise its 3rd extension for 30 days by providing notice on or before July 13, 2021, which would extend the closing date to August 20, 2021. The furthest and final closing date would be September, if all four extensions are exercised.

Next steps after closing will involve meeting with the Ad-hoc Committee on Real Estate to hire an architect. Hiring an architect will help the District in determining what accommodations (boardroom, lift areas, museum, etc...) can be placed at 1415 N. Carolan Ave.

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