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PETITION FOR THE ESTABLISHMENT OF THE RIO VERDE FOOTHILLS DOMESTIC WATER IMPROVEMENT DISTRICT AND PETITION TO INCUR EXPENSE TO THE HONORABLE BOARD OF SUPERVISORS OF MARICOPA COUNTY, ARIZONA: The undersigned real property owners (“Petitioners”), as identified in Exhibit A attached hereto and incorporated herein, petition (“Petition”) the Board of Supervisors of Maricopa County, Arizona (“County”) to enter its final order declaring the formation, organization and establishment of the RIO VERDE FOOTHILLS DOMESTIC WATER IMPROVEMENT DISTRICT (“District”). This Petition is made pursuant to Sections 48-901 to 48-967, inclusive, and Sections 48-1011 to 48-1019, inclusive, of the Arizona Revised Statutes (“A.R.S.”), as the same may be amended from time to time (collectively, the “County Domestic Water Improvement District Laws”). As required by A.R.S. Section 48-903(C), the Petitioners hereby assert and declare the following facts and make the following representations in support of this Petition: 1. The name of the proposed District is the “Rio Verde Foothills Domestic Water Improvement District” of Maricopa County, Arizona. 2. The necessity for the proposed District is the need to provide a secure source of water, purchase land and construct one or more standpipes for a domestic water system and other local improvements, and the financing of such improvements by the issuance of bonds or such other financial mechanisms as the District may determine in its discretion for the benefit of the parcels of land so benefitted within the proposed District, charging and collecting fees and charges as may be permitted by law, and levying taxes within the proposed District to operate and maintain such improvements. 3. The public convenience, necessity and welfare will be promoted by the establishment of the District and the real property to be included therein will be benefitted by the improvements which can be ordered upon the formation of the District. 4. The Initial Proposed Boundary Description for the District is described in Exhibit B: PROPOSED BOUNDARY DESCRIPTION attached hereto and the Initial Proposed Boundaries Map for the District is depicted in Exhibit C: PROPOSED BOUNDARIES MAP attached hereto. The intent is to show the boundaries within which Petitioners are required to own land in order to sign the Petition. After all petition signatures are gathered, there will be an amended Exhibit B: PROPOSED BOUNDARY DESCRIPTION and an amended Exhibit C: PROPOSED BOUNDARIES MAP created that will include only those parcels whose owners have signed this Petition. Parcels whose owners did NOT sign this petition will NOT be included in the District. The parcels to be included within the boundaries of the proposed District are not, wholly or partially, within either of the following: a, The boundaries of the existing service territory of a public service corporation that provides domestic water or wastewater services as defined by a certificate of convenience and necessity issued by the Arizona Corporation Commission. b. The boundaries of the proposed service territory of a public service corporation that provides domestic water or wastewater services as defined in an application for a certificate of convenience and necessity that is pending before the Arizona Corporation Commission or that has been considered by the Arizona Corporation Commission within one year before the date this Petition for an improvement district is filed with the Clerk of the Board of the County. 5. The proposed improvements may include, but are not limited to, acquiring a secure source of water, acquisition or construction of a well or wells, installation of a pump or pumps, construction of a water storage tank or tanks, and construction of a standpipe or standpipes, combined with water hauling by independent commercial and/or private water haulers delivering water from the constructed water infrastructure to parcels included within the District, or the sale of water from the domestic water system, all as part of a domestic water system. 6. Petitioners ask that the proposed District have the power and authority to: (i) construct, acquire and/or improve a domestic water system and all appurtenances thereto, within and without the District; (ii) make any and all other local improvements as may be required or necessary to fulfill such purpose; (iii) fund by loans, grants, assessments, special assessments, the issuance of bonds, and/or imposition of charges as may now or hereafter be ordered under and pursuant to the County Domestic Water Improvement District Laws; and (iv) provide for the operation, maintenance, repair and replacement of such improvements, as the need may arise. The proposed District shall be a special purpose district and municipal corporation for all applicable purposes. These purposes consist of, but are not limited to, the purposes prescribed in A.R.S. Section 48-909(A) as well as the related powers prescribed in A.R.S. Section 48-909(B) and A.R.S. Section 48-910. 7. Petitioners request that the District have an elected Board of Directors consisting of five members and that the following qualified electors of the District be appointed as the initial Board of Directors: Name of Director Address Jennifer Simpson 13824 E Olesen Rd Scottsdale, Arizona 85262 John Jouas 35607 N 138" Way Scottsdale, AZ 85262 Karen Nabity 13730 E. Cavedale Drive Scottsdale, Arizona 85262 Michelle Jameson 30507 N 164°" st Scottsdale, Arizona 85262 16327 E Rancho Tierra Dr Jaime Phillips Scottsdale, AZ 85262 8. Election dates shall be the same as the county-wide general election date of each even numbered year commencing in 2022, and terms of the applicable class shall expire on the last day of December following the election. 9. When the District is formed, this Petition shall be deemed to be a petition to the Board of Directors of the District that the District incur the expense of appointing and employing a District engineer, drafting and preparing plans, specifications and estimates of the District’s improvements or any one of them, and of taking all action to initiate and complete such improvements. Further, this Petition shall be deemed to be a petition to the Board of Directors of the District to incur the expenses of acquiring a secure source of water and constructing a domestic water system, to pay a required bond, other fees and expenses, costs of mailings, notifications, professionals and of taking all action to initiate and complete the process of obtaining a secure source of water and any improvements. 10. The Petitioners agree to pay all expenses connected with the proceedings in case the Board of Supervisors refuses to establish the District. If the District is established but the improvement work is abandoned by the District, the costs incurred previous to the abandonment (i.e., costs for engineering, legal, financial, and other incidental expenses) will be paid by the District, such payment will be provided for by the levy and collection of taxes upon all the property, real and personal, in the District, or payment for such costs will be made by any other remedy or law in force at the time of abandonment. 11. Petitioners understand that the engineer’s estimate of costs of the improvements have not been completed nor has the assessment methodology been determined or approved by the Board of Directors, and therefore no maximum limit on the amount of any assessment or the aggregate amount of all assessments has been established. 12. Petitioners acknowledge that the formation of the District may result in the levy of ad valorem taxes, assessments, and other charges to pay the costs of taking all action to initiate and complete the anticipated improvements, and for their operation and maintenance, and that the real property included within the District will be subject to the ordinances, resolutions, and other laws of the District. The owners of real property within Exhibit B: PROPOSED BOUNDARY DESCRIPTION and Exhibit C: PROPOSED BOUNDARIES MAP who do not sign this Petition shall be excluded from the District. 13. The Petitioners represent and/or acknowledge that: (1) this Petition constitutes a binding obligation; (2) this Petition has been validly authorized and executed as verified in the verification attached hereto; (3) this Petition meets the majority requirements of A.R.S. Sections 48-903(A); (4) the proposed District is a non-contiguous District and after all Petitioners sign this petition, an amended Exhibit B: PROPOSED BOUNDARY DESCRIPTION and an amended Exhibit C: PROPOSED BOUNDARIES MAP will be created including ONLY those parcels whose owners have signed this Petition; and as a result (5) 100% of the owners of 100% of the real property to be included in the District will have signed this Petition. EXHIBIT A PETIONERS SIGNATURE PAGE THIS PAGE INTENTIONALLY LEFT BLANK