Loading...
HomeMy WebLinkAbout2022-01-19 PacketPage 1 of 8 City Council Regular Meeting AGENDA To participate or view the virtual meeting, go to the following link: https://zoom.us/j/97199426600 Or you can call in using your telephone only: Call (toll free) 1-888-788-0099 Enter the Access Code: 971 9942 6600 To Raise Hand enter *9 To Speak after being recognized: enter *6 to unmute yourself Or One tap mobile (for easy connection on smart phones): US: +16699009128,,97199426600# or +12532158782,,97199426600# Alternatively, you may view the meeting (without participating) by clicking on the name of the meeting at www.cityofukiah.com/meetings. January 19, 2022 - 6:00 PM 1.ROLL CALL 2.PLEDGE OF ALLEGIANCE 3.PROCLAMATIONS/INTRODUCTIONS/PRESENTATIONS 3.a.Proclamation Recognizing Mel Grandi for His Significant Professional Contributions to the City of Ukiah Electric Utility Department and the Customers It Serves, and Rename the Substation on Orchard Avenue to Grandi Substation. Recommended Action: Issue a Proclamation of the Ukiah City Council recognizing Mel Grandi for his service to the City of Ukiah, and rename Orchard Substation to Grandi Substation. Attachments: 1.Grandi Sub Proclamation 3.b.Presentation of the City of Ukiah Equity Action Plan and Approval of a Resolution Adopting the Equity Action Plan Created by the Equity and Diversity Standing Committee and Changing the Name of the Committee to the Diversity and Equity Standing Committee. Recommended Action: Receive presentation of the City of Ukiah Equity Action Plan and approve the Resolution adopting the City of Ukiah Equity Action Plan created by the Equity and Diversity Standing Committee and changing the name of the Committee to the Diversity and Equity Standing Committee. Attachments: 1.Equity Action Plan & Wrksht 2.Resolution Adopting Equity Action Plan and Changing Committee Name (2) 4.PETITIONS AND COMMUNICATIONS 5.APPROVAL OF MINUTES 5.a.Approval of the Minutes for the December 13, 2021, Special Meeting. Page 1 of 858 Page 2 of 8 Recommended Action: Approve minutes for the December 13, 2021, special meeting. Attachments: 1.2021-12-13 Draft Minutes - Special Meeting 5.b.Approval of the Minutes for the December 15, 2021, Regular Meeting. Recommended Action: Approve the minutes for the December 15, 2021, regular meeting. Attachments: 1.2021-12-15 Draft Minutes - Regular Meeting 5.c.Approval of the Minutes for the December 27, 2021, Special Meeting. Recommended Action: Approve the Minutes of December 27, 2021, a Special Meeting, as submitted. Attachments: 1.2021-12-27 Draft Minutes - Special Meeting 6.RIGHT TO APPEAL DECISION Persons who are dissatisfied with a decision of the City Council may have the right to a review of that decision by a court. The City has adopted Section 1094.6 of the California Code of Civil Procedure, which generally limits to ninety days (90) the time within which the decision of the City Boards and Agencies may be judicially challenged. 7.CONSENT CALENDAR The following items listed are considered routine and will be enacted by a single motion and roll call vote by the City Council. Items may be removed from the Consent Calendar upon request of a Councilmember or a citizen in which event the item will be considered at the completion of all other items on the agenda. The motion by the City Council on the Consent Calendar will approve and make findings in accordance with Administrative Staff and/or Planning Commission recommendations. 7.a.Adoption of Resolution of the City Council Reconsidering the Circumstances of the State of Emergency and Implementing Teleconferencing Requirements for City Council and Board and Commission Meetings During a Proclaimed State of Emergency Due to the COVID-19 Pandemic. Recommended Action: Adopt a Resolution of the City Council Reconsidering the Circumstances of the State of Emergency and Implementing Teleconferencing Requirements for City Council and Board and Commission Meetings during a Proclaimed State of Emergency Due to the COVID-19 Pandemic. Attachments: 1.AB 361 Findings Reconsideration for All Legislative Bodies 1 19 22 7.b.Adoption of Resolution Approving the City of Ukiah's Qualified Contractors List for 2022. Recommended Action: Adopt the proposed resolution approving the Qualified Contractors List for 2022. Attachments: 1.City Code Section 1541-1543 2.Cost Accounting Manual - Partial 3.November 1, 2021, Public Notice 4.Proposed Resolution with Exhibit A 7.c.Notification to City Council of Contract No. 2021-235 with Cinquini & Passarino Inc. for Consulting and Surveying Services at the Electric Service Center on Hastings Rd., in the Amount of $17,500. Recommended Action: Receive notification of Contract No. 2021-235 with Cinquini & Passarino Inc., for the amount of $17,500.00. Attachments: 1.COU# 2021-235 - Cinquini & Passarino, Inc - Complete Page 2 of 858 Page 3 of 8 2.Amend. 1 Cinquini & Passarino, Inc - Land Surveying 2021-235-A1 - signed 7.d.Adoption of a Resolution of Application for a Revised Submittal to the Mendocino Local Agency Formation Commission (LAFCo) to Annex City-Owned Properties within Unincorporated Mendocino County; and Approval of the Community Development Director's Determination that the Proposed Annexation Qualifies for a CEQA Exemption. Recommended Action: Adopt the revised Resolution in Attachment 1 to authorize re-submittal to the Mendocino LAFCo; and approve the Community Development Director's determination that the proposed annexation qualifies for a CEQA Exemption. Attachments: 1.Resolution 2.Exhibit A - Legal Description 3.Exhibit B-Plat Maps 4.City Owned Annexation - List of Parcels 5.LAFCo A-2021-01 Auditor Notice 6.City Maps 7.County Maps 7.e.Report to Council on PO #47411 Issued to Corrosion Protection Solutions in the Amount of $61,560, as well as Change Order #01 in the Amount of $4,843.80, for a Total of $66,403, and Request a Budget Amendment for this Amount. Recommended Action: Council will receive a report on PO #47411 issued to Corrosion Protection Solutions in the amount of $61,560, as well as Change Order #01 in the amount of $4,843.80, for a total of $66,403 and request a Budget Amendment for this amount. Attachments: 1.Corrosion Protection Solutions 7.f.Approval of Contract Amendment with BKF Engineers for the Additional Design to the Gobbi Street Utility Replacement Project, and Approval of a Corresponding Budget Amendment. Recommended Action: Approve contract amendment with BKF Engineers for the additional design to the Gobbi Street Utility Replacement Project, and approve corresponding budget amendment. Attachments: 1.BKF Traffic Signal Proposal - Ukiah Gobbi St 7.g.Adopt Resolution and Approve the Support Services Program Agreement (SSPA) with the Northern California Power Agency (NCPA) Recommended Action: Adopt Resolution and approve the Support Services Program Agreement (SSPA) between NCPA and the City of Ukiah (City); authorize the City Manager or his delegate to execute the agreement; Appoint the City Attorney, City Manager, and Electric Utility Director as Designated Representatives under the SSPA and authorize them, together, to execute service confirmations for amounts not to exceed $20,000 per confirmation or such greater amount as may be authorized by City Council action or applicable City ordinance. Attachments: 1.Support_Services_Program_Agreement 2.Resolution NCPA-Ukiah SSPA 7.h.Notification of Purchase Order #47600-02 Issued to Bartley Pump PM, LLC for the Teardown, Inspection, and Rehabilitation of Well #8 in the Amount of $28,689.70. Recommended Action: Receive notification of Purchase Order #47600-02 issued to Bartley Pump PM, LLC for the teardown, inspection, and rehabilitation of Well #8 in the amount of $28,689.70, and authorize additional costs to perform a pump test. Attachments: 1.Well 8 rehab PO Page 3 of 858 Page 4 of 8 7.i. Authorize City Manager to Sign Airport Rescue Grant Offer, Grant No. 3-06-0268-021-2022 for Ukiah Municipal Airport in the Amount of $32,000, and Approve Corresponding Budget Amendment(s). Recommended Action: Authorize City Manager to sign Airport Rescue Grant Offer, Grant No. 3- 06-0268-021-2022 for Ukiah Municipal Airport in the amount of $32,000, and approve corresponding budget amendment{s}. Attachments: 1.Grant Agreement 7.j.Approve the Purchase of Mobile Data Terminals (MDT) for the Ukiah Valley Fire Authority (UVFA) in the Amount of $173,830.11 for the Initial Three Years, and Approve Corresponding Budget Amendment. Recommended Action: Approve the purchase of Mobile Data Terminals in the amount of $173,830.11 from RadioMobile, and approve the corresponding budget amendment. Attachments: 1.RadioMobile CAL FIRE Case Study 11-2019 2.RadioMobile (SourceWell-Quote) 7.k.Report the Emergency Purchase of all Materials and Labor for the Traffic Signal Control Cabinets Replacement at the Intersections of State & Standley and State & Perkins Streets from DC Electric Group in the Amount of $58,935.00. Recommended Action: Receive Report for the Emergency Purchase of all Materials and Labor for the Traffic Signal Control Cabinets Replacement at the Intersections of State & Standley and State & Perkins Streets from DC Electric Group in the Amount of $58,935.00. Attachments: 1.DC Quote 2.Attachment 2 - PO 7.l.Approval of a Professional Service Contract with GHD for Flood Mapping Review Support in the Amount Not to Exceed $17,000, and Corresponding Budget Amendment. Recommended Action: Approve the Professional Service Contract with GHD for Flood Mapping Review Support in the Amount Not to Exceed $17,000, and Approval of Corresponding Budget Amendment. Attachments: 1.GHD Proposal - FEMA Flood Mapping Review 8.AUDIENCE COMMENTS ON NON-AGENDA ITEMS The City Council welcomes input from the audience. If there is a matter of business on the agenda that you are interested in, you may address the Council when this matter is considered. If you wish to speak on a matter that is not on this agenda, you may do so at this time. In order for everyone to be heard, please limit your comments to three (3) minutes per person and not more than ten (10) minutes per subject. The Brown Act regulations do not allow action to be taken on audience comments in which the subject is not listed on the agenda. 9.COUNCIL REPORTS 10.CITY MANAGER/CITY CLERK REPORTS 11.PUBLIC HEARINGS (6:15 PM) 11.a.Conduct a Public Hearing and Consider Adopting Respective Resolutions Authorizing Lease Revenue Bonds, Series 2022 to Renovate the City Corporation Yard and Construct Improvements to Various City Streets (This item was continued from December 15, 2021.) Recommended Action: Adopt resolutions authorizing the issuance of lease revenue bonds and authorizing the City Manager to execute all related documents for the renovation of the City Corporation Yard and improvements to various City streets. Page 4 of 858 Page 5 of 8 Attachments: 1.1 Ukiah City Reso- Lease 2.2 Ukiah Authority Reso- Issue Bonds 3.3 Site Lease - Ukiah 4.4 Lease Agreement - Ukiah 5.5 Indenture - Ukiah 6.6 Assignment Agmt - Ukiah 7.7 POS (Ukiah LRBs) 8.8 Bond Purchase Agreement (Piper Sandler) 12.UNFINISHED BUSINESS 12.a.Receive Status Report and Consider Any Action or Direction Related to the Novel Coronavirus (COVID-19) Emergency Including Operational Preparedness and Response; Continuity of City Operations and Services; Community and Business Impacts; and Any Other Related Matters. Recommended Action: Receive status report and consider any action or direction related to the Novel Coronavirus (COVID-19) Emergency including operational preparedness and response; continuity of City operations and services; community and business impacts; and any other related matters. Attachments: None 12.b.Determination of Notification of Intent to Adjust Curbside Collection and Transfer Station Service Rates in Compliance with Solid Waste Contracts, and Initiation of Proposition 218 Protest Period for Residential Curbside Collection Rates. Recommended Action: Confirm the determination of the City Manager, as reported here, of compliance with the provisions of the agreements between the City of Ukiah and Ukiah Waste Solutions, Inc. and Solid Waste Systems, Inc. regarding the company's notice of intent to adjust curbside collection and transfer station rates, authorize the initiation of the Proposition 218 protest period for residential curbside collection rates, and schedule the subsequent protest hearing for March 2, 2022. Attachments: 1.SWS UWS April 2022 Adjustment 2.Rate Comparison 12.c.Introduction of an Ordinance by Title Only, Amending Article 1 of Division 1, Chapter 4 of the Ukiah City Code to Reform the Paths, Open Space, and Golf Commission and the Parks, Recreation and Golf Commission into the Public Spaces Commission. Recommended Action: Introduce an ordinance by title only, amending Article 1 of Division 1, Chapter 4 of the Ukiah City Code to reform the Paths, Open Space, and Golf Commission and the Parks, Recreation and Golf Commission into the Public Spaces Commission. Attachments: 1.Public Spaces Commission Ordinance Attachment 1 2.ASR Community Outreach Plan Draft Attachment 2 12.d.Approve Contract Amendment Eight with Carollo Engineers for the Design Efforts of the Recycled Water Phase 4 Project in the amount of $4,600,773 and approval of corresponding budget amendment. Recommended Action: Approve contract amendment eight with Carollo Engineers for the design efforts of the Recycled Water Phase 4 project in the amount of $4,600,773 and approval of corresponding budget amendment. . Attachments: 1.Recycled Water Ph4 CO2 WWTP_12JAN2022 Page 5 of 858 Page 6 of 8 12.e.Consider Adoption of Resolution Adopting a 2022 Advocacy Platform to Serve as Guidelines for Local, State, and Federal Legislative Matters. Recommended Action: Adopt resolution adopting a 2022 Advocacy Platform to serve as guidelines for local, state, and federal legislative, administrative, regulatory and court matters. Attachments: 1.Advocacy Platform and Resolution_2022_highlighted 2.Advocacy Platform and Resolution_2022_clean 3.2022 League of CA Cities Priorities 13.NEW BUSINESS 13.a.Adopt a Resolution Authorizing the Exception to the 180-Day Waiting Period, and Authorizing the City’s Retired Electric Utility Director to Work on a Temporary Basis as an Extra Help Employee in Accordance with Government Code Sections 7522.56 and 21224. Recommended Action: Adopt a resolution authorizing the exception to the 180-day waiting period, and authorizing the City’s retired Electric Utility Director to work on a temporary basis as extra help employee in accordance with Government Code Sections 7522.56 and 21224. Attachments: 1.Attachment 1 - Resolution Authorizing the Exception of the 180-Day Waiting Period 13.b.Authorize Staff to Research and Possibly Apply for CalTrans' Clean California Grant; Authorize City Manager to Execute Grant Documents. Recommended Action: Authorize Staff to research and possibly apply for the CalTrans Clean California; authorize the City Manager to execute grant documents. Attachments: 1.Guidelines - Clean CA Grant 2.FAQ - Clean CA Grant 13.c.Presentation of City's Audited Annual Comprehensive Financial Report (ACFR) and Audit Reports for the Year Ended June 30, 2021. Recommended Action: Receive and file ACFR. Attachments: 1.City of Ukiah ACFR, June 30, 2021 2.CAFR Presentation, 2021 13.d.Receive Updates; Discussion and Appointments Regarding 2022 Council Assignments; and Consideration of Disbandment and Modification to City Council Committees and Ad Hocs. Recommended Action: 1) Receive report(s); 2) Discuss the Mayor's recommended assignments, making any possible appointments or re-assignments; 3) Consider the possible continuation, disbandment, and addition of City Council Ad Hoc and/or committees; and 4) Direct the City Clerk to finalize and attach the 2022 Council Assignments and Ad Hoc Committee List to the January 19, 2022, Minutes. Attachments: 1.Draft 2022 City Council Special Assignments 14.CLOSED SESSION - CLOSED SESSION MAY BE HELD AT ANY TIME DURING THE MEETING 14.a.Conference with Legal Counsel—Anticipated Litigation (Government Code Section 54956.9(d)(2)or(3)) Significant exposure to litigation pursuant to paragraph (2) or (3) of subdivision (d) of Section 54956.9: (Number of potential cases: 1) Recommended Action: Attachments: None Page 6 of 858 Page 7 of 8 14.b.Conference with Legal Counsel—Anticipated Litigation (Government Code Section 54956.9(d)(2)or(3)) Significant exposure to litigation pursuant to paragraph (2) or (3) of subdivision (d) of Section 54956.9: (1 potential case, involving possible termination of construction contract for cause) Recommended Action: Attachments: None 14.c.Conference with Legal Counsel – Existing Litigation (Government Code Section 54956.9(d)(1)) Name of case: Vichy Springs Resort v. City of Ukiah, Et Al; Case No. SCUK-CVPT-2018-70200 Recommended Action: Attachments: None 14.d.Conference with Legal Counsel – Existing Litigation (Government Code Section 54956.9(d)(1)) Name of case: Vichy Springs Resort v. City of Ukiah, Et Al; Case No. SCUK-CVPT-20-74612 Recommended Action: Confer in Closed Session Attachments: None 14.e.Conference with Legal Counsel – Existing Litigation (Cal. Gov’t Code Section 54956.9(d)(1)) Name of case: City of Ukiah v. Questex, LTD, et al, Mendocino County Superior Court, Case No. SCUK- CVPT-15-66036 Recommended Action: Confer in Closed Session Attachments: None 14.f.Conference with Legal Counsel – Existing Litigation (Cal. Gov’t Code Section 54956.9(d)(1)) Name of case: Siderakis v. Ukiah, et al, Mendocino County Superior Court, Case No. 21CV00603 Recommended Action: Confer in Closed Session Attachments: None 14.g.Conference with Legal Counsel – Existing Litigation (Government Code Section 54956.9(d)(1)) Name of case: Gerardo Magdaleno, by and through his Guardian Ad Litem, Pedro Francisco Magdaleno v. City of Ukiah, Justin Wyatt (Fed. Dist. Ct. N.D. Cal.) 3:21-2609 VC. Recommended Action: Confer in Closed Session Attachments: None 14.h.Conference with Real Property Negotiators (Cal. Gov’t Code Section 54956.8) Property: APN Nos: 003-500-19; 003-190-08; 057-050-12; 157-050-11; 157-060-003; 001-040- 83;157-050-03, 157-060-02, 157-050-04, 157-050-03, 157-030-02, 157-050-01, 157-050-02, 157-050-10, 157-050-09, 157-070-01, 157-070-02, 003-190-01; 003-181-01; 003-582-38 Negotiator: Sage Sangiacomo, City Manager; Negotiating Parties: Dave Hull and Ric Piffero Under Negotiation: Price & Terms of Payment Recommended Action: Confer in Closed Session Attachments: None Page 7 of 858 Page 8 of 8 14.i.Conference with Labor Negotiator (54957.6) Agency Representative: Sage Sangiacomo, City Manager Employee Organizations: All Bargaining Units Recommended Action: Confer in Closed Session Attachments: None 15.ADJOURNMENT Please be advised that the City needs to be notified 72 hours in advance of a meeting if any specific accommodations or interpreter services are needed in order for you to attend. The City complies with ADA requirements and will attempt to reasonably accommodate individuals with disabilities upon request. Materials related to an item on this Agenda submitted to the City Council after distribution of the agenda packet are available for public inspection at the front counter at the Ukiah Civic Center, 300 Seminary Avenue, Ukiah, CA 95482, during normal business hours, Monday through Friday, 8:00 am to 5:00 pm. I hereby certify under penalty of perjury under the laws of the State of California that the foregoing agenda was posted on the bulletin board at the main entrance of the City of Ukiah City Hall, located at 300 Seminary Avenue, Ukiah, California, not less than 72 hours prior to the meeting set forth on this agenda. Kristine Lawler, City Clerk/CMC Dated: 1/14/22 Page 8 of 858 Page 1 of 2 Agenda Item No: 3.a. MEETING DATE/TIME: 1/19/2022 ITEM NO: 2022-1207 AGENDA SUMMARY REPORT SUBJECT: Proclamation Recognizing Mel Grandi for His Significant Professional Contributions to the City of Ukiah Electric Utility Department and the Customers It Serves, and Rename the Substation on Orchard Avenue to Grandi Substation. DEPARTMENT: Electric Utility PREPARED BY: Cindy Sauers, Electric Utility Director PRESENTER: Jim Brown, Mayor ATTACHMENTS: 1. Grandi Sub Proclamation Summary: The City Council will issue a Proclamation recognizing Mel Grandi for his service to the City of Ukiah and rename Orchard Substation to Grandi Substation. Background: The City of Ukiah Electric Utility has been serving its electric customers for over 110 years. What began as a lighting company with a mere 20 lights grew to be a full-service electric utility company. Over the last 100 years, the electric utility industry has transformed and improved our quality of life. With humble beginnings in lighting, the industry took to heating and cooling our homes and office spaces. Today, it breathes life into the digital world we tap into with our smartphones and computers. We have become so accustomed to having power 24/7, that even a short outage causes stress and discomfort. The City of Ukiah Electric Utility has changed with the times and countless men and women have worked to make these improvements a reality. One of these people is former Director Mel Grandi. Discussion: In 2008, Mel Grandi was hired as the City of Ukiah Electric Utility Director. At that time, the Utility was facing significant challenges, including aging infrastructure, deferred maintenance and upgrades, and the need for a new substation. Director Grandi worked diligently and systematically to improve the system and change the culture of the Utility from reactive to proactive. The accomplishments that were achieved during Director Grandi's tenure include: designing and building a new substation; making countless improvements to Lake Mendocino Hydroelectric Plant; and purchasing and remodeling what will be the Electric Service Center. These larger projects do not overshadow the design improvements he made to the facilities throughout the City that deliver energy to each City of Ukiah customer. His commitment to the customers has been unwavering, and is most noticeable in the reduced outage times that have been realized. It is Staff's recommendation that Council issue the Proclamation recognizing Mel Grandi for this service to the City of Ukiah, and rename Orchard Substation to Grandi Substation. Recommended Action: Issue a Proclamation of the Ukiah City Council recognizing Mel Grandi for his service to the City of Ukiah, and rename Orchard Substation to Grandi Substation. BUDGET AMENDMENT REQUIRED: No CURRENT BUDGET AMOUNT: N/A PROPOSED BUDGET AMOUNT: N/A FINANCING SOURCE: N/A PREVIOUS CONTRACT/PURCHASE ORDER NO.: Page 9 of 858 Page 2 of 2 COORDINATED WITH: Sage Sangiacomo, City Manager Page 10 of 858 Attachment 1 R oclamation C I T Y O F U K I A H RECOGNIZING MEL GRANDI FOR HIS SIGNIFICANT PROFESSIONAL CONTRIBUTIONS TO THE CITY OF UKIAH ELECTRIC UTILITY DEPARTMENT AND THE CUSTOMERS IT SERVES. WHEREAS, Mel Grandi, PE, Electric Utility Director of the City of Ukiah, retired on December 30, 2021, after completing outstanding service to the City since 2008; and WHEREAS, Mr. Grandi received a Bachelor of Science degree from UC Davis in 1979; and WHEREAS, Mr. Grandi served in various engineering and management capacities at Mare Island Naval Shipyard, General Electric, Guadalupe Valley Electric Cooperative, and Lodi Electric; and WHEREAS, Mr. Grandi has demonstrated an unwavering commitment to the City of Ukiah, its Electric Utility and the customers it serves; and WHEREAS, Mr. Grandi has made significant contributions to the City of Ukiah’s Electric Utility in the building of the new substation, Electric Service Center, and countless other improvements increasing reliability and resiliency of the City’s electric system; and WHEREAS, Mr. Grandi has earned the admiration and respect of City officials, his staff and his peers for his dedication and hard work. NOW, THEREFORE BE IT RESOLVED, that the Council of the City of Ukiah takes great pleasure in recognizing the significant professional contributions made by Mr. Mel Grandi and herewith expresses its sincere gratitude for the invaluable contributions he has made to the City of Ukiah; and BE IT FURTHER RESOLVED that the Orchard Substation, located at 724 South Orchard Avenue in the City of Ukiah, be named Grandi Substation in honor of Mr. Grandi. Signed and sealed, this 19th day of January in the year Two Thousand and Twenty-Two. ____________________________ Jim O. Brown City Council, Mayor Page 11 of 858 Page 1 of 2 Agenda Item No: 3.b. MEETING DATE/TIME: 1/19/2022 ITEM NO: 2021-1243 AGENDA SUMMARY REPORT SUBJECT: Presentation of the City of Ukiah Equity Action Plan and Approval of a Resolution Adopting the Equity Action Plan Created by the Equity and Diversity Standing Committee and Changing the Name of the Committee to the Diversity and Equity Standing Committee. DEPARTMENT: City Manager / Admin PREPARED BY: Traci Boyl, City Manager's Office Senior Analyst PRESENTER: Traci Boyl, Management Analyst ATTACHMENTS: 1. Equity Action Plan & Wrksht 2. Resolution Adopting Equity Action Plan and Changing Committee Name (2) Summary: The City Council will receive a presentation and consider approving the Resolution adopting the City of Ukiah Equity Action Plan created by the Equity and Diversity Standing Committee and changing the name of the Committee to the Diversity and Equity Standing Committee. Background: The City of Ukiah declared a commitment to diversity, equity, and inclusion on July 1, 2020, when the City Council established an Equity and Diversity Ad Hoc committee to ensure a comprehensive approach to continue the forward progress and evolution of our agency and services. Then, on October 7, 2020, the City Council further established this commitment to diversity, equity, and inclusion when the Ad Hoc was dissolved and City Council adopted Resolution 2020-59 to establish an eleven (11) member Equity and Diversity Standing Committee. The Committee was tasked with developing a written Action Plan to improve diversity, equity, and inclusion within the City workforce and in providing municipal services, to oversee the implementation of the Action Plan, to provide an annual review, and to propose revisions to the Action Plan as necessary. The City of Ukiah Equity and Diversity Committee has been meeting on a regular, monthly basis since its formation in 2020, and has actively participated in numerous diversity, equity, and inclusion-related discussions and training. The Committee has received input from various demographic groups represented on the Committee, engaged in informative presentations from many of the City's departments including, Police, Fire, Community Development, Community Services, and the City Manager's Office, and has been actively participating in the City's 2040 General Plan update. The Committee has actively engaged and assisted City staff in the development of several equity-related initiatives and projects for the City of Ukiah, including the development of a schedule of diversity, equity, and inclusion-related proclamations accepted by the City Council on November 17, 2021, a resolution to officially designate the second Monday in October each year as Indigenous People's Day in the City of Ukiah adopted by the Ukiah City Council on October 6, 2021, and an Equity webpage on the City's website. Discussion: With input from City staff, consideration of the scope of the City's influence and authority, and special consideration of the unique challenges and needs of the whole community, the Committee developed an Equity Action Plan (Attachment 1). The plan identifies and establishes equity objectives and goals, specific steps, and measurable indicators for each goal. Page 12 of 858 Page 2 of 2 On December 13, 2021, at their regularly scheduled meeting, The City's Executive Leadership Team received a presentation and copy of the draft plan and had the opportunity to provide additional feedback, ask questions, and discuss strategies for plan implementation. Therefore, Staff recommends that Council approve the Resolution (Attachment 2) adopting the Equity Action Plan and changing the name of the Committee to the Diversity and Equity Standing Committee in furtherance of the City's effort to reflect the diversity of the community we serve, to integrate equitable public service, and promote opportunity for all individuals and groups. Changing the name of the Committee from the Equity and Diversity Standing Committee to the Diversity and Equity Standing Committee and changing the representative seat designated for an individual from an LGBTQA to LGBTQA+ explicitly sets forth the Committee's intent to improve diversity and equity by adopting common, recognizable equity-related language used throughout the country in committees, policies and programs, and initiatives. If the plan is adopted, staff will begin implementing the plan immediately. Recommended Action: Receive presentation of the City of Ukiah Equity Action Plan and approve the Resolution adopting the City of Ukiah Equity Action Plan created by the Equity and Diversity Standing Committee and changing the name of the Committee to the Diversity and Equity Standing Committee. BUDGET AMENDMENT REQUIRED: N/A CURRENT BUDGET AMOUNT: N/A PROPOSED BUDGET AMOUNT: N/A FINANCING SOURCE: N/A PREVIOUS CONTRACT/PURCHASE ORDER NO.: N/A COORDINATED WITH: Diversity and Equity Standing Committee and Various City Staff Page 13 of 858 Attachment 1 City of Ukiah EQUITY ACTION PLAN January 2022 Page 14 of 858 EQUITY, DIVERSITY & INCLUSION ACTION PLAN : REV. 12.8.21 PAGE 1 Executive Summary At the City of Ukiah, we understand that we have a unique responsibility to all residents as local government and public servants. We know that it is not enough to prioritize diversity. We must also prioritize equity and inclusion to create a culture where every individual and group is welcomed, respected, and provided the opportunity to participate fully. As part of the City's ongoing effort to reflect the diversity of the community we serve, integrate equitable public service, and promote opportunity for all individuals and groups, we have developed this Equity Action Plan. MISSION/OBJECTIVE With community engagement, develop an action plan to foster equity and diversity in the organization and our community.  Review policies, practices, and procedures to promote and enhance equal participation and access to services, resources, and life opportunities and ensure our organization accurately reflects our community's diversity. PLAN DEVELOPMENT The City of Ukiah Equity Action Plan identifies and establishes equity objectives and goals, specific steps, and measurable indicators for each goal. In addition, the Equity Action Plan establishes accountability through an internal and external process and an annual accountability report to the Ukiah City Council to achieve a collective vision of diversity, equity, and inclusion within the organization and our community. ASPIRATIONAL GOALS AND EXPECTED OUTCOMES • Create and sustain a diverse, equitable, and inclusive workplace and workforce that reflects, values, and celebrates the diverse community we serve. • Eliminate internal and external barriers to diversity, equity, and inclusion within the systems of our organization. • Recruit, retain, and advance a community of staff that reflects, values, and celebrates the diversity of the community we serve. • Identify and engage underrepresented communities in which to retain, expand, develop, and implement programs. • Instill diversity, equity, and inclusion as essential core elements of policy-making, accountability, and delivery of City services. • Ensure accountability in the implementation of goals and assessment of progress toward outcomes. Page 15 of 858 EQUITY, DIVERSITY & INCLUSION ACTION PLAN : REV. 12.8.21 PAGE 2 1GOALS, STRATEGIES, AND SPECIFIC STEPS Goal 1. Create and sustain a diverse, equitable, and inclusive workplace and workforce that reflects, values, and celebrates the diverse community we serve. STRATEGY: Consistently, clearly, and boldly communicate that diversity, equity, and inclusion (DEI) are critical to the City's values. CRITICAL STEPS • Create and adopt a Diversity, Equity, and Inclusion statement • Integrate the Diversity, Equity, and Inclusion statement into City initiatives and communication materials • Create a schedule of recommended proclamations to celebrate the diversity of our community and educate and raise awareness of diversity, equity, and inclusion- related issues • Create an Equity webpage on the City's website • Create a social media and website campaign that highlights the value of the diversity of the organization Goal 2. Eliminate internal and external barriers to Diversity, Equity, and Inclusion within the systems of our organization. STRATEGY A: Improve access to City communication, public meetings, and essential services to remove barriers to inclusivity. CRITICAL STEPS • Develop a plan to improve the accessibility of public meetings • Identify, develop, and implement strategies to improve the accessibility to including but not limited to, the City's website, social media content, program applications, and requests for proposal • Evaluate essential services to identify strengths and identify and remedy barriers • Provide ongoing education and training on the plans and strategies identified STRATEGY B: Improve the organization's recruitment, development, and retention practices to remove barriers within these processes. CRITICAL STEPS • Review recruitment, development, and retention practices to identify barriers to employment and create a plan to reduce those barriers, including but not limited 1 Critical Steps are organized by order, not priority. Page 16 of 858 EQUITY, DIVERSITY & INCLUSION ACTION PLAN : REV. 12.8.21 PAGE 3 to the development and implementation, of a recruitment plan designed to increase employment that accurately reflects the community we serve • Develop and implement an oversight process to ensure diversity in hiring, evaluation, and promotion • Develop annual employee surveys that include diversity, equity, and inclusion topics and identify a review team to assess the survey, prepare a summary, and make recommendations to City leadership Goal 3. Recruit, retain, and advance a community of staff that reflects, values, and celebrates the diversity of the community we serve. STRATEGY: Strengthen the City to advance diversity, equity, and inclusion efforts and to provide equitable and inclusive advancement opportunities for all staff. Listen to staff, committee, commission, and Council Members and value and consider their opinions, perspectives, and actions. CRITICAL STEPS • Create a mentorship program to create mentoring opportunities throughout the organization • Mandate diversity, equity, and inclusion training for all new hires during the orientation process • Mandate biannual diversity, equity, and inclusion training for all current employees Goal 4. Identify and actively engage underrepresented communities in which to retain, expand, develop, and implement programs. STRATEGY: Leverage existing resources to conduct asset-mapping and develop a needs assessment with recommendations inclusive of input from underrepresented members of the community. CRITICAL STEPS • Coordinate with existing groups representing the diversity of the community we serve to identify the best methods for connecting with those groups • Conduct focus groups and listening sessions • Conduct community-wide surveys • Provide ongoing recommendations regarding the needs assessment to City leadership Page 17 of 858 EQUITY, DIVERSITY & INCLUSION ACTION PLAN : REV. 12.8.21 PAGE 4 Goal 5. Instill diversity, equity, and inclusion as essential core elements of policy-making, accountability, and delivery of City services. STRATEGY A: Increase the diversity of the City's Boards, Commissions, and Committees to accurately reflect the community we serve. CRITICAL STEPS • Add diversity/inclusivity questions to all board, commission, and committee applications to evaluate applicants' understanding of/and experience working within diverse groups • Identify and implement methods of engaging and advertising employment and board/committee openings to reach a more diverse audience of potential applicants STRATEGY B: Improve the quantity, quality, and accessibility of City programs to reflect the needs of the diverse community we serve. CRITICAL STEPS • Conduct a community-wide survey to assess program needs and/or interests • Complete an inventory and analysis of existing programs to identify gaps and create a plan to reduce the identified gaps Goal 6. Ensure accountability in the implementation of goals and assessment of progress toward outcomes STRATEGY: Develop internal and external processes to preserve and ensure accountability in the process and implementation of goals, strategies, and critical steps to evaluate the progress to achieve the outcomes and goals and to assist in the annual accountability report to the Ukiah City Council. CRITICAL STEPS • Celebrate achievements • Make recommendations for corrective action through ongoing monitoring and evaluation by the Committee Page 18 of 858 EQUITY, DIVERSITY & INCLUSION ACTION PLAN : REV. 12.8.21 PAGE 5 GOAL 1. Create and sustain a diverse, equitable, and inclusive workplace and workforce that reflects, values, and celebrates the diverse community we serve. STRATEGY: Consistently, clearly, and boldly communicate that diversity, equity, and inclusion (DEI) are critical to the City's values. Outcomes and Actions Target Date Responsible Dept./Committee Performance Measure Create and adopt a Diversity, Equity, and Inclusion statement Dec. 2022 CM Office/Diversity and Equity Committee Statement created Integrate the Diversity, Equity, and Inclusion statement into City initiatives and communication materials Dec. 2022 CM Office/Diversity and Equity Committee Statement will be integrated into City initiatives and communication materials Create a schedule of recommended proclamations to celebrate the diversity of our community and educate and raise awareness of diversity, equity, and inclusion related issues Jan. 2022 CM Office/Diversity and Equity Committee Schedule of recommended Proclamations received by City Council Create an Equity webpage on the City's website Jan. 2022 CM Office Webpage created Create a social media and website campaign that highlights the value of the diversity of the organization July 2022 CM Office Social media and website campaign created and initial roll-out has begun GOAL 2. Eliminate internal and external barriers to Diversity, Equity, and Inclusion within the systems of the organization. STRATEGY A: Improve access to City communication, public meetings, and essential services to remove barriers to inclusivity. Outcomes and Actions Target Date Responsible Dept./Committee Performance Measure Develop a plan to improve the accessibility of public meetings December 2022 CM Office/City Clerk A plan created and ready for implementation Page 19 of 858 EQUITY, DIVERSITY & INCLUSION ACTION PLAN : REV. 12.8.21 PAGE 6 Identify, develop, and implement strategies to improve the accessibility to including but not limited to, the City's website, social media content, program applications, and requests for proposal December 2022 CM Office Documented strategies to improve accessibility Evaluate essential services to identify strengths and to identify and remedy barriers December 2022 CM Office Documented process for essential service evaluation, including strengths and barriers, and identified remedies. Documented summary of identified barriers and action taken to remedy. Provide ongoing education and training on the plans and strategies identified December 2023 CM Office/HR Dept. Summary of education and training activities related to identified strategies GOAL 2. Eliminate internal and external barriers to Diversity, Equity, and Inclusion within the systems of the organization. STRATEGY B: Improve the organization's recruitment, development, and retention practices to remove barriers within these processes. Outcomes and Actions Target Date Responsible Dept./Committee Performance Measure Review recruitment, development, and retention practices to identify barriers to employment and create a plan to reduce those barriers, including but not limited to the development and implementation, of a recruitment plan designed to increase employment that accurately reflects the community we serve July 2023 CM Office/HR Dept. Recruitment, development, retention practices plan complete and ready for implementation. Develop and implement an oversight process to ensure diversity in hiring, evaluation, and promotion December 2023 CM Office/HR Dept. Oversight process developed and implemented. Develop annual employee surveys that include diversity, equity, and inclusion topics and identify a review team to assess the survey, prepare a summary, and make recommendations to city leadership Jan. 2023 CM Office/HR Dept. Annual surveys developed. The review team identified. GOAL 3. Recruit, retain, and advance a diverse community of staff that reflects, values, and celebrates the diversity of the community we serve. Page 20 of 858 EQUITY, DIVERSITY & INCLUSION ACTION PLAN : REV. 12.8.21 PAGE 7 STRATEGY: Strengthen the City to advance diversity, equity, and inclusion efforts and to provide equitable and inclusive opportunities for advancement for all staff. Listen to staff, committee, commission, and Council Members and value and consider their opinions, perspectives, and actions. Outcomes and Actions Target Date Responsible Dept./Committee Performance Measure Create a mentorship program to create mentoring opportunities throughout the organization July 2022 CM Office Program created and implemented Mandate diversity, equity, and inclusion training for all new hires during the orientation process Mandate biannual diversity, equity, and inclusion training for all current employees July 2022 CM Office/HR Dept. Diversity, Equity, and Inclusion training included in new employee orientation process and diversity, equity, and inclusion training scheduled for all employees GOAL 4. Identify and engage underrepresented communities in which to retain, expand, develop, and implement programs STRATEGY: Leverage existing resources to conduct asset-mapping and develop a needs assessment with recommendations inclusive of input from underrepresented members of the community Outcomes and Actions Target Date Responsible Dept./Committee Performance Measure Coordinate with existing groups representing the diversity of the community we serve to identify the best methods for connecting with those groups December 2022 CM Office/Diversity and Equity Committee Detailed database of identified groups and their contact info. including best ways to connect developed Conduct focus groups and listening sessions December 2022 CM Office/Diversity and Equity Committee Documented summary of focus group and listening sessions Conduct community-wide surveys December 2022 CM Office Documented summary of surveys and results Provide ongoing recommendations regarding the need assessment to City leadership December 2022 CM Office/Diversity and Equity Committee Quarterly recommendation reports from the Ad Hoc to City leadership Page 21 of 858 EQUITY, DIVERSITY & INCLUSION ACTION PLAN : REV. 12.8.21 PAGE 8 GOAL 5. Instill diversity, equity, and inclusion as essential core elements of policy-making, accountability, and delivery of City services. STRATEGY A: Increase the diversity of the City's Boards, Commissions, and Committees to accurately reflect the diversity of the community we serve. Outcomes and Actions Target Date Responsible Dept./Committee Performance Measure Add diversity/inclusivity questions to all board, commission, and committee applications to evaluate applicants' understanding of/and experience working with diverse groups July 2022 CM Office/City Clerk Diversity and inclusivity questions included on all board, commission, and committee applications Identify and implement methods of engaging and advertising employment and board/committee openings to reach a more diverse audience of potential applicants July 2022 CM Office/HR Dept. Identified summary of methods implemented to engage and advertise for employment and board/committee openings. GOAL 5. Instill diversity, equity, and inclusion as essential core elements of policy-making, accountability, and delivery of City services. STRATEGY B: Improve the quantity, quality, and accessibility of city programs to reflect the needs of the diverse community we serve. Outcomes and Actions Target Date Responsible Dept./Committee Performance Measure Conduct a community-wide survey to assess program needs and/or interests December 2022 CM Office Survey with results conducted. Complete an inventory and analysis of existing programs to identify gaps and create a plan to reduce the identified gaps December 2022 CM Office Analysis complete, gaps identified, and a plan to reduce the gaps ready for implementation. GOAL 6. Ensure accountability in the implementation of goals and assessment of progress toward outcomes STRATEGY: Develop external processes to preserve and ensure accountability in the process and implementation of goals, strategies, and critical steps to evaluate the progress towards the outcomes and goals and to assist in the annual accountability report to the Ukiah City Council Outcomes and Actions Target Date Responsible Dept./Committee Performance Measure Page 22 of 858 EQUITY, DIVERSITY & INCLUSION ACTION PLAN : REV. 12.8.21 PAGE 9 Celebrate achievements and make recommendations for corrective action through ongoing monitoring and quarterly evaluations by the Committee April 2022 (ongoing) CM Office/Diversity and Equity Committee Quarterly progress reports and press release summarizing recommendations and achievements Page 23 of 858 City of Ukiah Equity Action Plan 2022-2023 January 2022 City of Ukiah Equity Action Plan Rev. 12.8.21 GOAL 1. Create and sustain an equitable, diverse, and inclusive workplace and workforce that reflects, values, and celebrates the diverse community we serve. 2022 2023 STRATEGY: Consistently, clearly, and boldly communicate that diversity, equity, and inclusion (DEI) are critical to the City's values Outcomes and Actions Responsible Dept./Committee Performance Measure Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Status/Notes Create and adopt a Diversity, Equity and Inclusion statement CM Office/Diversity and Equity Committee Statement created Integrate the Diversity, Equity, and Inclusion statement into City initiatives and communication materials CM Office/Diversity and Equity Committee Statement will be integrated into City initiatives and communication materials Create a schedule of recommended proclamations to celebrate the diversity of our community and educate and raise awareness of diversity, equity, and inclusion related issues CM Office/Diversity and Equity Committee Schedule of recommended Proclamations received by City Council Create an Equity webpage on the City's website CM Office webpage created Create a social media and website campaign that highlights the value of the diversity of the organization CM Office Social media and website campaign created and initial roll-out has begun GOAL 2. Eliminate internal and external barriers to Diversity, Equity, and Inclusion within the systems of the organization. 2022 2023 STRATEGY A: Improve access to City communication, public meetings, and essential services to remove barriers to inclusivity. Outcomes and Actions Responsible Dept./Committee Performance Measure Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Status/Notes Develop a plan to improve the accessibility of public meetings CM Office/City Clerk A plan created and ready for implementation Identify, develop, and implement strategies to improve the accessibility to including but not limited to, the City's website, social media content, program applications, and requests for proposal CM Office Documented identified strategies implemented Evaluate essential services to identify strengths and to identify and remedy barriers CM Office Documented process for essential service evaluation, including strengths and barriers, and identified remedies. Documented summary of identified barriers and action taken to remedy. Provide ongoing education and training on the plans and strategies identified CM Office/HR Dept. Summary of education and training activities related to identified strategies GOAL 2. Eliminate internal and external barriers to Diversity, Equity, and Inclusion within the systems of the organization. 2022 2023 STRATEGY B: Improve the organization's recruitment, development, and retention practices to remove barriers within these processes. Outcomes and Actions Responsible Dept./Committee Performance Measure Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Status/Notes Review recruitment, development, and retention practices to identify barriers to employment and create a plan to reduce those barriers, including but not limited to the development and implementation, of a recruitment plan designed to increase employment that accurately reflects the community we serve CM Office/HR Dept. Recruitment, development, retention practices plan complete and ready for implementation. Develop and implement an oversight process to ensure diversity in hiring, evaluation, and promotion CM Office/HR Dept. Oversight process developed and implemented. Develop annual employee surveys that include diversity, equity, and inclusion topics and identify a review team to assess the survey, prepare a summary, and make recommendations to city leadership CM Office/HR Dept. Annual surveys developed. The review team identified. GOAL 3. Recruit, retain, and advance a community of staff that reflects, values, and celebrates the diversity of the community we serve. 2022 2023 STRATEGY: Strengthen the City to advance diversity, equity, and inclusion efforts and to provide equitable and inclusive opportunities for advancement for all staff. Listen to City staff, committee, commission, and Council members, and value and consider their opinions, perspectives, and actions. Outcomes and Actions Responsible Dept./Committee Performance Measure Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Status/Notes Create a mentorship program to create mentoring opportunities throughout the organization CM Office Program created and implemented Mandate diversity, equity, and inclusion training for all new hires during the orientation process CM Office/HR Dept. Diversity, Equity, and Inclusion training included in new employee orientation process and diversity, equity, and inclusion training scheduled for all employees Mandate biannual diversity, equity, and inclusion training for all current employees 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Page 24 of 858 City of Ukiah Equity Action Plan 2022-2023 January 2022 City of Ukiah Equity Action Plan Rev. 12.8.21 GOAL 4. Identify and actively engage underrepresented communities in which to retain, expand, develop, and implement programs 2022 2023 STRATEGY: Leverage existing resources to conduct asset-mapping and develop a needs assessment with recommendations inclusive of input from underrepresented members of the community Outcomes and Actions Responsible Dept./Committee Performance Measure Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Status/Notes Coordinate with existing groups representing the diversity of the community we serve to identify the best methods for connecting with those groups CM Office/Diversity and Equity Committee Detailed database of identified groups and their contact info. including best ways to connect developed Conduct focus groups and listening sessions CM Office/Diversity and Equity Committee Documented summary of focus group and listening sessions Conduct community-wide surveys CM Office Documented summary of surveys and results Provide ongoing recommendations regarding the need assessment to City leadership CM Office/Diversity and Equity Committee Quarterly recommendation reports from the Ad Hoc to City leadership GOAL 5. Instill diversity, equity, and inclusion as essential core elements of policy-making, accountability, and delivery of City services. 2022 2023 STRATEGY A: Increase the diversity of the City's Boards, Commissions, and Committees to accurately reflect the diversity of the community we serve. Outcomes and Actions Responsible Dept./Committee Performance Measure Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Status/Notes Add diversity/inclusivity questions to all board, commission, and committee applications to evaluate applicants' understanding of/and experience working with diverse groups CM Office/City Clerk Diversity and inclusivity questions included on all board, commission, and committee applications Identify and implement methods of engaging and advertising employment and board/committee openings to reach a more diverse audience of potential applicants CM Office/HR Dept. Identified summary of methods implemented to engage and advertise for employment and board/committee openings. GOAL 5. Instill diversity, equity, and inclusion as essential core elements of policy-making, accountability, and delivery of City services. 2022 2023 STRATEGY B: Improve the quantity, quality, and accessibility of city programs to reflect the needs of the diverse community we serve. Outcomes and Actions Responsible Dept./Committee Performance Measure Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Status/Notes Conduct a community-wide survey to assess program needs and/or interests in the community CM Office Survey with results conducted. Complete an inventory and analysis of existing programs to identify gaps and create a plan to reduce the identified gaps CM Office Analysis complete, gaps identified, and a plan to reduce the gaps ready for implementation. GOAL 6. Ensure accountability in the implementation of goals and assessment of progress toward outcomes 2022 2023 STRATEGY: Develop external processes to preserve and ensure accountability in the process and implementation of goals, strategies, and critical steps to evaluate the progress towards the outcomes and goals and to assist in the annual accountability report to the Ukiah City Council Outcomes and Actions Responsible Dept./Committee Performance Measure Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Status/Notes Celebrate achievements and make recommendations for corrective action through ongoing monitoring and quarterly evaluations by the Committee CM Office/Diversity and Equity Committee Quarterly progress reports and press release summarizing recommendations and achievements 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Page 25 of 858 1 RESOLUTION NO. 2022- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF UKIAH ADOPTING EQUITY ACTION PLAN CREATED BY THE EQUITY AND DIVERSITY STANDING COMMITTEE AND CHANGING THE NAME OF THE COMMITTEE TO THE DIVERSITY AND EQUITY STANDING COMMITTEE WHEREAS: 1. The City established the Equity and Diversity Standing Committee (“Committee”) by Resolution 2020-50; and 2. The duties assigned to the Committee including adopting written objectives to improve diversity and equity in the City’s workforce and in the provision of municipal services, developing a written Action Plan to achieve those objectives, and implementing and overseeing the Action Plan; and 3. The Committee has since developed the City of Ukiah Equity Action Plan setting forth goals and objectives to improve diversity and equity in the City’s workforce and in the provision of municipal services, and the concrete steps taken to achieve those goals and objectives; and 4. The Equity Action Plan is ready for adoption by the Council; and 5. In order to explicitly set forth the Committee’s intent to improve diversity and equity, the Committee has recommended that the name of the Committee be changed to the Diversity and Equity Standing Committee, and that the representative seat designated for an individual from a LGBTQA group should be changed to a LGBTQA+ group. NOW, THEREFORE BE IT RESOLVED as follows: 1. The City Council of the City of Ukiah hereby adopts the City of Ukiah Equity Action Plan. The City of Ukiah Equity Action Plan is set forth in Attachment 1, attached hereto and by reference incorporated herein. 2. The name of the Standing Committee of the City Council known as the Equity and Diversity Standing Committee shall be changed to the Diversity and Equity Standing Committee (“Committee”). 3. One member of the Committee shall be from an organization in the City of Ukiah of the Ukiah Valley, including Redwood and Potter Valleys, which serves or represents persons from the LGBTQA+ community. PASSED AND ADOPTED at a regular meeting of the City Council of the City of Ukiah on the 19th day of January, 2022 by the following roll call vote: AYES: NOES: ABSENT: ABSTAIN: Jim O. Brown, Mayor Page 26 of 858 2 ATTEST: Kristine Lawler, City Clerk Page 27 of 858 AGENDA ITEM 5a Page 1 of 1 CITY OF UKIAH CITY COUNCIL MINUTES Special Meeting Virtual Meeting Link: https://zoom.us/j/97199426600 Ukiah, CA 95482 December 13, 2021 5:00 p.m. 1. ROLL CALL AND PLEDGE OF ALLEGIANCE Ukiah City Council met at a Special Meeting on December 13, 2021, having been legally noticed on December 10, 2021. The meeting was held virtually at the following link: https://zoom.us/j/97199426600. Mayor Orozco called the meeting to order at 5:24 p.m. Roll was taken with the following Councilmembers Present: Douglas F. Crane, Josefina Duenas, Jim O. Brown, and Juan V. Orozco. Councilmembers Absent: Mari Rodin, Staff Present: Sage Sangiacomo, City Manager; David Rapport, City Attorney; Darcy Vaugh, Assistant City Attorney; and Kristine Lawler, City Clerk. MAYOR OROZCO PRESIDING. The Pledge of Allegiance was led by Vice Mayor Brown. 2. AUDIENCE COMMENTS ON NON-AGENDA ITEMS No public comment was received. 3. UNFINISHED BUSINESS a. Capital Financing Plan Workshop #2. Presenters: Dan Buffalo, Finance Director; Andrew Stricklin, Associate Engineer; Jason Benson, Senior Civil Engineer; Cindy Sauers, Assistant Electric Utility Director; and Shannon Riley, Deputy City Manager. A PowerPoint Presentation was presented. RECESS 7:32 – 7:37 P.M. 4. NEW BUSINESS 5. ADJOURNMENT There being no further business, the meeting adjourned at 8:02 p.m. ________________________________ Kristine Lawler, City Clerk/CMC Page 28 of 858 AGENDA ITEM 5b Page 1 of 6 CITY OF UKIAH CITY COUNCIL MINUTES Regular Meeting Virtual Meeting Link: https://zoom.us/j/97199426600 Ukiah, CA 95482 December 15, 2021 6:00 p.m. 1. ROLL CALL Ukiah City Council met at a Regular Meeting on January 6, 2021, having been legally noticed on January 10, 2021. The meeting was held virtually at the following link: https://zoom.us/j/97199426600. Mayor Orozco called the meeting to order at 6:15 p.m. Roll was taken with the following Councilmembers Present: Douglas F. Crane (arriving at 6:42 p.m.), Mari Rodin, Josefina Dueňas (arriving at 6:50 p.m.), Jim O. Brown, and Juan V. Orozco. Staff Present: Sage Sangiacomo, City Manager; David Rapport, City Attorney; and Kristine Lawler, City Clerk. MAYOR OROZCO PRESIDING. 2.PLEDGE OF ALLEGIANCE The Pledge of Allegiance was led by Mayor Orozco. 3.PROCLAMATIONS/INTRODUCTIONS/PRESENTATIONS a.Presentation of the Mayor’s Plaque. Presenter: Vice Mayor Brown. Public Comment: Jackeline Orozco, Rebeca Orozco, and Traci Boyl (due to technical difficulties, the clerk read the statement from Ms. Boyl). Plaque was received by Mayor Orozco. b.Annual Appointment of New Mayor and Vice Mayor, and Council Reorganization. Presenter: Kristine Lawler, City Clerk/CMC No public comment was received. Motion by Councilmember Rodin, seconded by Mayor Orozco for the recommended action. Councilmember Crane arrived at 6:42 p.m. Councilmember Crane arrived at 6:50 p.m. Upon further discussion, Council member Rodin revised her motion as follows: Motion/Second: Rodin/Crane to nominate and appoint Councilmember Brown for Mayor for 2022. Motion carried by the following roll call votes: AYES: Crane, Rodin, Dueňas, Brown, and Orozco. NOES: None. ABSENT: None. ABSTAIN: None. Motion/Second: Crane/Brown to nominate and appoint Councilmember Duenas for Vice Mayor. Motion carried by the following roll call votes: AYES: Crane, Rodin, Dueňas, Brown, and Orozco. NOES: None. ABSENT: None. ABSTAIN: None. Page 29 of 858 City Council Minutes for December 15, 2021, Continued: Page 2 of 6 Motion/Second: Brown/Crane to approve the Council reorganization [recommended rotation] for the remaining Councilmembers. Motion carried by the following roll call votes: AYES: Crane, Rodin, Dueňas, Brown, and Orozco. NOES: None. ABSENT: None. ABSTAIN: None. MAYOR BROWN PRESIDING. c. Proclamation Recognizing a Renewed Commitment to Diversity, Equity, and Inclusion in the City of Ukiah. Presenter: Mayor Brown. Proclamation was received by Councilmember Orozco 4. PETITIONS AND COMMUNICATIONS 5. APPROVAL OF MINUTES a. Approval of the Minutes for the November 17, 2021, Regular Meeting. Motion/Second: Rodin/Crane to approve Minutes of November 17, 2021, a regular meeting, as submitted. Motion carried by the following roll call votes: AYES: Crane, Rodin, Dueňas, Brown, and Orozco. NOES: None. ABSENT: None. ABSTAIN: None. 6. RIGHT TO APPEAL DECISION 7. CONSENT CALENDAR a. Report of Disbursements for the Month of October 2021 - Finance. b. Report of Disbursements for the Month of November 2021 - Finance. c. Adoption of Resolution (2021-59) of the City Council Reconsidering the Circumstances of the State of Emergency and Implementing Teleconferencing Requirements for City Council and Board and Commission Meetings During a Proclaimed State of Emergency Due to the COVID- 19 Pandemic – City Attorney. d. Adopt the Resolution (2021-60) Approving the Fourth Addendum to the Recycled Water Project Initial Study/Mitigated Negative Declaration (IS/MND) – Water Resources. e. Adoption of Resolutions Authorizing Grant Applications Related to the Emergency Intertie Pump Project (2021-61) COU No. 2122-156), the Groundwater Resiliency Project (2021-62) (COU No. 2122-157), and Phase 4 of the Recycled Water Project (2021-63) (COU No. 2122-158); and Approval of the Community Development Director's Determination that the Groundwater Resiliency Grant Project Qualifies for a CEQA Exemption – Water Resources. f. Adoption of Resolution (2021-64) Making an Appointment to the Parks, Recreation, and Golf Commission (PRGC) – City Clerk. g. Approval of Plans and Specifications No. 21-06 for the Runway 15-33 Pavement Rehabilitation Phase 2, and Authorize Staff to Issue Bids for Specification No. 21-06, to be Funded by FAA Grant, California State Grant and Local Funds - Airport. h. Conditional Award of Purchase (PO No. 47639) of a Permanent Back-Up Power Generator for the Ukiah Valley Conference Center in the Amount of $53,871.35 to Valley Power Systems, Inc., to be Funded through 20-CDBG-CV1-00004 –Community Development & Services. Page 30 of 858 City Council Minutes for December 15, 2021, Continued: Page 3 of 6 i. Approve the Purchase of Printing Services (COU No. 2122-159) for the Activities and Recreation Guide from Wesco Graphics in the Amount of $47,774.61 – Community Services. j. Approval of New Classifications in the Financial Services Specialist Series, and Corresponding Budget Amendment to the Finance Department Personnel Allocations - Finance. k. Receive and File Report of Acquisition of Professional Services (PO No. 47602) from Alpha Analytical Laboratories, Inc. in the Amount of $20,712.85 for Quarterly Water Sampling and Completion of Chemical Examination Reports for the Ukiah Landfill – Public Works. l. Approve Change Order #09 (COU No. 2021-087-CO9) to CV Larsen Company in the Amount of $146,405.36 and Extend the Pressure Zone 2 South Reservoir Replacement Project, Specification No. 20-02 for a Total Revised Contract Amount of $1,353,129.45, and Approve Corresponding Budget Amendment – Water Resources. m. Review and Consider the Fiscal Year 2022-23 Budget Development Schedule - Finance. n. Approve a Budget Amendment to the Water Operation and Maintenance Fund, for Possible Expenses in the 2021/2022 Fiscal Year Related to Equipment Maintenance and Repair, Using Water Resources Reserve Funds – Water Resources. Motion/Second: Crane/Rodin to approve Consent Calendar Items 7a-7n, with the replaced Attachment 4 on Agenda Item 7e. Motion carried by the following roll call votes: AYES: Orozco, Crane, Rodin, Dueňas, and Brown. NOES: None. ABSENT: None. ABSTAIN: None. 8. AUDIENCE COMMENTS ON NON-AGENDA ITEMS No public comment was received. 9. COUNCIL REPORTS Presenters: Councilmembers Crane and Orozco. 10. CITY MANAGER/CITY CLERK REPORTS Presenters:  Activities Impacting Local Businesses – Noble Waidelich, Police Chief.  Announcement of Swearing-in Ceremony for Police Chief, Captain, and Lieutenant – Sage Sangiacomo, City Manager and Noble Waidelich, Police Chief.  Announcement Regarding Annual Legislative Agenda Item – Shannon Riley, Deputy City Manager. 11. PUBLIC HEARINGS (6:15 PM) a. Conduct a Public Hearing and Consider Adopting Respective Resolutions Authorizing Lease Revenue Bonds, Series 2022 to Renovate the City Corporation Yard and Construct Improvements to Various City Streets. Presenter: Dan Buffalo, Finance Director. No public comment in respect to a continuation of the meeting was received. Page 31 of 858 City Council Minutes for December 15, 2021, Continued: Page 4 of 6 Motion/Second: Crane/Rodin to continue this item to the January 19, 2022, [at 6:00 p.m.] Council Meeting. Motion carried by the following roll call votes: AYES: Orozco, Crane, Rodin, Dueňas, and Brown. NOES: None. ABSENT: None. ABSTAIN: None. The City Council adjourned the Regular Meeting and convened as the Ukiah Public Financing Authority at 7:20 p.m. 1. ROLL CALL AND PLEDGE OF ALLEGIANCE City Clerk, Kristine Lawler, stated that all members were present. 2. AUDIENCE COMMENTS ON NON-AGENDA ITEMS No public comment was received. 3. UNFINISHED BUSINESS a. Consider Adopting Respective Resolutions Authorizing Lease Revenue Bonds, Series 2022 to Renovate the City Corporation Yard and Construct Improvements to Various City Streets. Presenter: Dan Buffalo, Finance Director. No public comment was received. Motion/Second: Doug/Orozco to continue this item to the January 19, 2022, Council Meeting. Motion carried by the following roll call votes: AYES: Orozco, Crane, Rodin, Dueňas, and Brown. NOES: None. ABSENT: None. ABSTAIN: None. 4. NEW BUSINESS 5. ADJOURNMENT The Ukiah Public Financing Authority adjourned, and reconvened as the City Council, Regular Meeting at 7:28 p.m. 12. UNFINISHED BUSINESS a. Receive Status Report and Consider Any Action or Direction Related to the Novel Coronavirus (COVID-19) Emergency Including Operational Preparedness and Response; Continuity of City Operations and Services; Community and Business Impacts; and Any Other Related Matters. Presenter: Sage Sangiacomo, City Manager. Report was received. 13. NEW BUSINESS a. Approval of the Sole Source lease of 14 Safety Cameras from Flock Safety Group in the Amount of $38,500.00, and Approve Corresponding Budget Amendment. Presenters: Noble Waidelich, Police Chief and John Anderson, Flock Safety Group. No public comment was received. Motion/Second: Crane/Rodin to approve the sole source lease (COU No. 2122-160) of 14 safety cameras from Flock Safety Group in the amount of $38,500.00, and corresponding budget amendment. Motion carried by the following roll call votes: AYES: Orozco, Crane, Rodin, Dueňas, and Brown. NOES: None. ABSENT: None. ABSTAIN: None. Page 32 of 858 City Council Minutes for December 15, 2021, Continued: Page 5 of 6 b. Authorize City Manager to Execute Host Site Agreement with Beta Technologies for Electric Aircraft and Vehicle Charging Station at the Airport. Presenters: Greg Owen, Airport Manager and Skye Carapetyan, Beta Technologies. No public comment was received. Motion/Second: Crane/Orozco to authorize the City Manager to Execute a Host Site Agreement (COU No. 2122-161) with Beta Technologies for Electric Aircraft and a Vehicle Charging Station at the Airport. Motion carried by the following roll call votes: AYES: Orozco, Crane, Rodin, Dueňas, and Brown. NOES: None. ABSENT: None. ABSTAIN: None. c. Receive Updates on City Council Committee and Ad Hoc Assignments and, if Necessary, Consider Modifications to Assignments and/or the Creation/Elimination of Ad hoc(s). Presenters: Councilmembers Rodin and Orozco, and Mayor Brown. Reports were received. RECESS: 8:32 – 8:45 P.M. THE CITY COUNCIL ADJOURNED TO CLOSED SESSION AT 8:45 P.M. 14. CLOSED SESSION a. Conference with Legal Counsel—Anticipated Litigation (Government Code Section 54956.9(d)(2 & 3)) Significant exposure to litigation pursuant to Government Code Section 54956.9(d)(2)(Number of potential cases: 1) b. Conference with Legal Counsel – Anticipated Litigation (Government Code Section 54956.9(d)(2)or(3)) Significant exposure to litigation pursuant to paragraph (2) or (3) of subdivision (d) of Section 54956.9: (1 potential case, involving possible termination of construction contract for cause) c. Conference with Legal Counsel – Existing Litigation (Government Code Section 54956.9(d)(1)) Name of case: Vichy Springs Resort v. City of Ukiah, Et Al; Case No. SCUK-CVPT-2018-70200 d. Conference with Legal Counsel – Existing Litigation (Government Code Section 54956.9(d)(1)) Name of case: Vichy Springs Resort v. City of Ukiah, Et Al; Case No. SCUK-CVPT-20-74612 e. Conference with Legal Counsel – Existing Litigation (Cal. Gov’t Code Section 54956.9(d)(1)) Name of case: City of Ukiah v. Questex, LTD, et al, Mendocino County Superior Court, Case No. SCUK- CVPT-15-66036 f. Conference with Legal Counsel – Existing Litigation (Cal. Gov’t Code Section 54956.9(d)(1)) Name of case: Siderakis v. Ukiah, et al, Mendocino County Superior Court, Case No. 21CV00603 g. Conference with Legal Counsel – Existing Litigation (Government Code Section 54956.9(d)(1)) Name of case: Gerardo Magdaleno, by and through his Guardian Ad Litem, Pedro Francisco Magdaleno v. City of Ukiah, Justin Wyatt (Fed. Dist. Ct. N.D. Cal.) 3:21-2609 VC. Page 33 of 858 City Council Minutes for December 15, 2021, Continued: Page 6 of 6 h. Conference with Real Property Negotiators (Cal. Gov’t Code Section 54956.8) Property: APN Nos: 157-050-03, 157-060-02, 157-050-04, 157-050-03, 157-030-02, 157-050- 01, 157-050-02, 157-050-10, 157-050-09, 157-070-01, 157-070-02, 003-190-01 Negotiator: Sage Sangiacomo, City Manager; Negotiating Parties: Dave Hull and Ric Piffero Under Negotiation: Price & Terms of Payment i. Conference with Labor Negotiator (54957.6) Agency Representative: Sage Sangiacomo, City Manager Employee Organizations: All Bargaining Units No action reported; direction provided to staff. 15. ADJOURNMENT There being no further business, the meeting adjourned at 9:34 p.m. ________________________________ Kristine Lawler, City Clerk Page 34 of 858 AGENDA ITEM 5c Page 1 of 1 CITY OF UKIAH CITY COUNCIL MINUTES Special Meeting Virtual Meeting Link: https://zoom.us/j/97199426600 Ukiah, CA 95482 December 27, 2021 10:00 a.m. 1. ROLL CALL AND PLEDGE OF ALLEGIANCE Ukiah City Council met at a Special Meeting on December 27, 2021, having been legally noticed on December 22, 2021. The meeting was held virtually at the following link: https://zoom.us/j/97199426600. Mayor Brown called the meeting to order at 10:02 a.m. Roll was taken with the following Councilmembers Present: Juan V. Orozco (arriving at 10:04), Douglas, F. Crane, Mari Rodin, Josefina Dueňas, and Jim O. Brown. Staff Present: Sage Sangiacomo, City Manager; Darcy Vaughn, Assistant City Attorney; and Kristine Lawler, City Clerk. MAYOR BROWN PRESIDING. The Pledge of Allegiance was led by Councilmember Rodin. 2. AUDIENCE COMMENTS ON NON-AGENDA ITEMS No public comment was received. 3. UNFINISHED BUSINESS 4. NEW BUSINESS a.Adoption of Resolution of the City Council Authorizing the City Manager to Execute Participation Documents for the National Opioid Settlements. Presenter: Darcy Vaughn, Assistant City Attorney. Motion/Second: Crane/Rodin to adopt a Resolution of the City Council authorizing the City Manager to negotiate and execute any and all corresponding documents related to the City’s participation in the Settlements and receipt of Settlement Funds pursuant to the CA Distributor Allocation Agreement and CA J&J Allocation Agreement. Motion carried by the following roll call votes: AYES:, Crane, Rodin, Dueňas, and Brown. NOES: None. ABSENT: None. ABSTAIN: Orozco (due to technical difficulties). 5. ADJOURNMENT There being no further business, the meeting adjourned at 10:09 a.m. ________________________________ Kristine Lawler, City Clerk/CMC Page 35 of 858 Page 1 of 2 Agenda Item No: 7.a. MEETING DATE/TIME: 1/19/2022 ITEM NO: 2021-1128 AGENDA SUMMARY REPORT SUBJECT: Adoption of Resolution of the City Council Reconsidering the Circumstances of the State of Emergency and Implementing Teleconferencing Requirements for City Council and Board and Commission Meetings During a Proclaimed State of Emergency Due to the COVID-19 Pandemic. DEPARTMENT: City Attorney PREPARED BY: Darcy Vaughn, Assistant City Attorney PRESENTER: Consent Calendar ATTACHMENTS: 1. AB 361 Findings Reconsideration for All Legislative Bodies 1 19 22 Summary: The City Council will consider adopting a resolution reconsidering the circumstances of the state of emergency and implementing teleconferencing requirements for public meetings of the Council and all City Commissions and Boards during the current state of emergency due to the COVID-19 pandemic. Background: The City Council is being asked to consider adopting a resolution authorizing continued remote meetings of the Council and its subordinate legislative bodies due to the imminent risk to the health and safety of attendees due to possible transmission of COVID-19 and the recent spread of variants. The current County health orders require masking in all indoor facilities due to health and safety concerns. The Delta variant is highly transmissible in indoor settings and requires multi-component prevention strategies to reduce its spread. The California Department of Public Health is currently investigating the length of vaccine protection. The Center for Disease Control and Prevention recommends avoiding indoor spaces that do not offer fresh air from the outdoors as much as possible. Returning to meeting in the Council Chambers or smaller conference rooms means being in an enclosed space for meetings that commonly last for one to five hours and would seem to create additional exposure for participants to a possible transmission of the virus. The Ralph M. Brown Act (“Brown Act”) requires that all meetings of a legislative body of a local agency be open and public and that any person may attend and participate in such meetings. The Brown Act allows for legislative bodies to hold meetings by teleconference, but imposes specific requirements for doing so, including allowing public access to that location. On March 17, 2020, in order to address the need for public meetings during the COVID-19 pandemic, Governor Newsom issued Executive Order No. N-29-20, temporarily suspending the Brown Act’s teleconferencing requirements, Executive Order No. N-8-2 then continued the suspension of the Brown Act’s teleconferencing requirements from June 11, 2021 through September 30, 2021. These Executive Orders allowed legislative bodies to meet virtually as long as certain notice and accessibility requirements were met. The State Legislature amended the Brown Act through Assembly Bill No. 361 (“AB 361”) on September 16, 2021. As with the Executive Orders, AB 361 requires that certain notice and accessibility requirements continue to be met for holding virtual public meetings. In addition, AB 361 states that a local agency may use teleconferencing without complying with the regular teleconferencing requirements of the Brown Act, where the legislative body holds a meeting during a proclaimed state of emergency and makes certain findings; and requires that the legislative body make additional findings every 30 days in order to continue such teleconferencing. As such, staff recommends that the Council reconsider the circumstances of the state of emergency, and Page 36 of 858 Page 2 of 2 make findings regarding the state of emergency by adopting the Resolution Implementing Teleconferencing Requirements for City Council and Board and Commission Meetings During a Proclaimed State of Emergency Due to the COVID-19 Pandemic (“Resolution”) attached here as Attachment 1. Discussion: AB 361, codified in part in Government Code § 54953, allows a local agency legislative body to hold a public meeting utilizing teleconferencing without giving public access to a teleconference location but allowing public comment virtually if the Governor has proclaimed a State of Emergency and any of the following circumstances also apply: 1. State or local officials have imposed or recommended measures to promote social distancing. 2. The meeting is being held for the purposes of determining, by majority vote, whether as a result of the emergency, meeting in person would present imminent risks to the health or safety of attendees. 3. The legislative body has determined that as a result of the emergency, meeting in person would present imminent risks to the health or safety of attendees. As amended by AB 361, Government Code § 54953(e)(3) requires cities that are conducting public meetings via teleconferencing during a declared State of Emergency to make findings, within 30 days of the first virtual meeting after AB361 going into effect, and every 30 days thereafter, that the legislative body has reconsidered the circumstances of the state of emergency and either 1) the emergency continues to impact the ability to meet safely in person, and/or 2) State or local officials continue to impose or recommend social distancing. Council adopted these findings at their December 15, 2021 meeting. The Council must now adopt, via this Resolution (Attachment 1), the findings that confirm the circumstances of the state of emergency and justify holding public meetings of the Council and all subordinate commissions, boards, and committees utilizing teleconferencing and allowing public comment virtually, pursuant to Government Code § 54953(e)(3). Recommended Action: Adopt a Resolution of the City Council Reconsidering the Circumstances of the State of Emergency and Implementing Teleconferencing Requirements for City Council and Board and Commission Meetings during a Proclaimed State of Emergency Due to the COVID-19 Pandemic. BUDGET AMENDMENT REQUIRED: N/A CURRENT BUDGET AMOUNT: N/A PROPOSED BUDGET AMOUNT: N/A FINANCING SOURCE: N/A PREVIOUS CONTRACT/PURCHASE ORDER NO.: N/A COORDINATED WITH: City Clerk Page 37 of 858 1 RESOLUT ION NO. 2022-XX RESOLUT ION OF THE CIT Y COUNCIL OF THE CITY OF UKIAH IMPLEMENTING TELECONFERENCING REQUIREMENTS FOR CITY COUNCIL AND BOARD AND COMMISSION MEETINGS DURING A PROCLAIMED STATE OF EMERGENCY DUE TO THE COVID-19 PANDEMIC WHEREAS: 1. The City of Ukiah is committed to preserving and nurturing public access and participation in meetings of the City Council and its Boards and Commissions; and 2. All meetings of City’s legislative bodies are open and public, as required by the Ralph M. Brown Act, so that any member of the public may attend, participate, and watch the City’s legislative bodies conduct their business; 3. The Brown Act allows for legislative bodies to hold meetings by teleconference, but imposes specific requirements for doing so ; and 4. On March 17, 2020, in order to address the need for public meetings during the present public health emergency, i.e. the COVID-19 Pandemic, Governor Newsom issued Executive Order No. N-29-20, suspending the Act’s teleconferencing requirements; and 5. On June 11, 2021, Governor Newsom issued Executive Order No. N -8-21, continuing the suspension of the Brown Act’s teleconferencing requirements through September 30, 2021 ; and 6. The State Legislature amended the Brown Act through Assembly Bill No. 361 (AB 361) on September 16, 2021; and 7. AB 361, codified in part at Government Code section 54953(e), makes provisions for remote teleconferencing participation in meetings by members of a legislative body, without compliance with the requirements of Government Code section 54953(b)(3), subject to the existence of certain conditions; and 8. Such conditions now exist in the City, specifically, the Governor has proclaimed a state of emergency exists for the state of California due to the conditions caused by the COVID -19 pandemic and the impact on the health and safety of its residents ; and 9. The Delta variant is highly transmissible in indoor spaces, the California Department of Public Health is currently investigating how long vaccine protection lasts, and the Center fo r Disease Control and Prevention recommends avoiding indoor spaces that do not offer fresh air from the outdoors; 10. Current County health orders impose or measures to promote social distancing due to health and safety concerns; and Page 38 of 858 2 11. In accordance with Assembly Bill 361, the City Council does hereby find that as a result of the emergency, meeting in person would present imminent risks to the health or safety of attendees and the Council desires to authorize continued remote teleconferenced meetings of its legislative bodies; and 12. As a consequence of the local emergency, the City Council does hereby find that the legislative bodies of the City shall conduct their meetings without compliance with Government Code § 54953(b)(3), as authorized by § 54953(e), and that such legislative bodies shall comply with the requirements to provide the public with access to the meetings as prescribed in § 54953(e)(2); and 13. The City has taken measures to conduct public meetings via virtual tools that allow members of its legislative bodies and members of the public to join and participate in meetings remotely and provide public testimony in the virtual environment and via teleconference. NOW, THEREFORE, the City Council for the City of Ukiah hereby finds, determines, declares, orders, and resolves as follows: 1. That the foregoing recitals are true and correct and inco rporates them by this reference; and 2. The Governor of the State of California issued a Proclamation of State of Emergency, which remains in effect; and 3. County of Mendocino officials have imposed or recommended measures to promote social distancing; and 4. Meeting in person would present imminent risk to the health or safety of attendees; and 5. The City Council of the City of Ukiah has reconsidered the circumstances of the State of Emergency, and finds that: a. The factors triggering the State of Emergency continue to directly impact the ability of the members of the legislative bodies of the City of Ukiah, their staff, and members of the public to meet safely in person; and b. State and County officials continue to impose or recommend measures to promote social distancing. 6. The City Manager or his designee and the legislative bodies of the City of Ukiah are authorized to take all steps an d perform all actions necessary to execute and implement this Resolution in compliance with Government Code § 54953; and 7. This Resolution shall take effect immediately upon its adoption and shall be effective until the earlier of (i) February 18, 2022, or (ii) such time the City Council adopts a subsequent resolution in accordance with Government Code section 54953(e)(3) to extend the time during which the legislative bodies of the City may continue to teleconference without compliance with paragraph (3) of subdivision (b) of § 54953(b)(3). PASSED AND ADOPTED this 19th day of January, 2022, by the following roll call vote: Page 39 of 858 3 AYES: NOES: ABSENT: ABSTAIN: Jim O. Brown, Mayor ATTEST: Kristine Lawler, City Clerk Page 40 of 858 Page 1 of 2 Agenda Item No: 7.b. MEETING DATE/TIME: 1/19/2022 ITEM NO: 2021-1240 AGENDA SUMMARY REPORT SUBJECT: Adoption of Resolution Approving the City of Ukiah's Qualified Contractors List for 2022. DEPARTMENT: City Clerk PREPARED BY: Kristine Lawler, City Clerk PRESENTER: Kristine Lawler, City Clerk ATTACHMENTS: 1. City Code Section 1541-1543 2. Cost Accounting Manual - Partial 3. November 1, 2021, Public Notice 4. Proposed Resolution with Exhibit A Summary: Each year, the City of Ukiah's Qualified Contractors List is updated to reflect current applications of contractors with approved State Licenses for various categories from the California State Department of Consumer Affairs Contractors State License Board. Council will review the updated list and staff recommendation to approve the list, which is used for sending out bid proposals for City projects throughout the year. Background: As required by the informal bidding procedure of the City of Ukiah, City Code §1541-1543 (Attachment 1) and Public Contracts Code §22036 (Attachment 2 - partial), the City Clerk's office prepared and mailed a written notice on November 1, 2021, to construction trade organizations and journals (Attachment 3) inviting all licensed contractors to submit information regarding their firm to the City for inclusion on the City's list of qualified contractors for the 2022 calendar year. This information and application were also posted on the City's website (http://www.cityofukiah.com/qualified-contractors/). A contractor may be included throughout the year by either submitting a written notice to the City Clerk or by bidding on a City of Ukiah project. All contracting firms are verified through the California State Licensing Board for license validity. Additionally, when bids are submitted to the City, the public works registration number and insurance is also verified before moving forward with a company. All contractors who submitted their company information and construction classification designation, received by the Clerk's office as of January 3, 2022, have been included on the current updated list. The list is attached to the proposed resolution (Attachment 4) as "Exhibit A". The proposed resolution ensures that staff has a competitive list of qualified contractors when soliciting bids for the City of Ukiah. Discussion: Staff is recommending adoption of the proposed resolution approving the Qualified Contractors List for 2022. This list will be posted on the City's website and will be modified throughout the year as additional applications are received. Recommended Action: Adopt the proposed resolution approving the Qualified Contractors List for 2022. BUDGET AMENDMENT REQUIRED: N/A CURRENT BUDGET AMOUNT: N/A PROPOSED BUDGET AMOUNT: N/A FINANCING SOURCE: N/A Page 41 of 858 Page 2 of 2 PREVIOUS CONTRACT/PURCHASE ORDER NO.: N/A COORDINATED WITH: Mary Horger, Financial Services Manager Page 42 of 858 ATTACHMENT 1 Page 43 of 858 ATTACHMENT 2 Page 44 of 858 Page 45 of 858 Page 46 of 858 Page 47 of 858 Page 48 of 858 Page 49 of 858 Page 50 of 858 Page 51 of 858 Page 52 of 858 Page 53 of 858 Page 54 of 858 Page 55 of 858 Page 56 of 858 PUBLIC NOTICE DATE: November 1, 2021 FOR RELEASE: Immediately SUBJECT: Application for Qualified Contractors List CONTACT: Kristine Lawler, City Clerk (707) 463-6217 All Licensed Contractors who wish to be included on the City of Ukiah’s list of qualified bidders for the year 2022, should submit the name and address to which Notice of Bids or Proposals should be mailed, a phone number at which the contractor may be reached, the type of work in which the contractor is interested and for which the contractor is currently licensed (e.g. earthwork, pipelines, electrical, painting, general building, etc.) together with the class of contractor’s license or licenses held, and the contractor’s license number(s) (NOTE – Insurance forms are not necessary at this time.) A Qualified Contractors List application form and insurance requirements may be obtained from the City Clerk or downloaded from the City of Ukiah’s website: http://www.cityofukiah.com/qualified-contractors/. Completed forms should be submitted to: City of Ukiah ATTN: CITY CLERK 300 Seminary Avenue Ukiah, CA 95482 OR: Fax to: (707) 463-6204 OR Email: klawler@cityofukiah.com ATTACHMENT 3 Page 57 of 858 City of Ukiah APPLICATION FOR QUALIFIED CONTRACTOR’S LIST PER PUBLIC CONTRACTS CODE § 22032 Full Name Date Address Phone Number ( ) Fax Number ( ) Email @ Name of Business Address (if different from above) Phone Number ( ) Fax Number ( ) Email @ State of California Contractor’s License Number Expiration Date Classifications Insurance Provider (agent) The City of Ukiah requires that contractor(s) shall procure and maintain for the duration of any contract with the City of Ukiah insurance against claims for injuries to persons or damages to property which may arise from or in connection with the performance of the work required. Insurance forms and specific requirements are attached for your reference; please check with your agent to ensure your policy meets our requirements. These documents are not required until the contract is approved. Mail, Fax, or Email completed form to: CITY OF UKIAH Attn: City Clerk 300 Seminary Avenue Ukiah, CA 95482 FAX: 707-463-6204 klawler@cityofukiah.com Page 58 of 858 Page 1 of 2 INSURANCE REQUIREMENTS FOR CONTRACTORS (with Construction Risks) Contractor shall procure and maintain for the duration of the contract insurance against claims for injuries to persons or damages to property which may arise from or in connection with the performance of the work hereunder by the Contractor, his agents, representatives, employees or subcontractors. I. Minimum Scope of Insurance Coverage shall be at least as broad as: A. Insurance Services Office Commercial General Liability coverage (Form No. CG 20 10 10 01 and Commercial General Liability – Completed Operations Form No. CG 20 37 10 01). B. Insurance Services Office form number CA 0001 (Ed. 1/87) covering Automobile Liability, code 1 (any auto). C. Workers’ Compensation insurance as required by the State of California and Employer’s Liability Insurance. D. Course of Construction insurance covering for “all risks” of loss. II. Minimum Limits of Insurance Contractor shall maintain limits no less than: A. General Liability: $1,000,000* per occurrence for bodily injury, personal injury and property damage including operations, products and completed operations. If Commercial General Liability Insurance or other form with a general aggregate limit is used, either the general aggregate limit shall apply separately to this project/location or the general aggregate limit shall be twice the required occurrence limit. Insurance must be written on an occurrence basis. B. Automobile Liability: $1,000,000* per accident for bodily injury and property damage. Insurance must be written on an occurrence basis. C. Employer’s Liability: $1,000,000 per accident for bodily injury or disease. D. Course of Construction: Completed value of the project with no co-insurance penalty provisions. *Dependent upon project scope, a higher or additional coverage may be required. III. Deductibles and Self-Insured Retentions Any deductibles or self-insured retentions must be declared to and approved by the City. The City may require the insurer to reduce or eliminate such deductibles or self-insured retentions with respect to the City, its officers, officials, employees and volunteers; or the Contractor to provide a financial guarantee satisfactory to the City guaranteeing payment of losses and related investigations, claim administration and defense expenses; or to approve the deductible without a guarantee. IV. REQUIRED Insurance Provisions Proof of general liability and automobile liability policies are to contain, or be endorsed to contain, the following provisions: A. The City, its officers, officials, employees, and volunteers are to be covered as ADDITIONAL INSURED 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 performed by or on behalf of the Contractor including materials, parts or equipment, furnished in connection with such work or operations. General liability coverage can be provided in the form of an endorsement to the Contractor’s insurance, or as a separate owner’s policy. Page 59 of 858 Page 2 of 2 B. The workers’ compensation policy is to be endorsed with a waiver of subrogation. The insurance company, in its endorsement, agrees to waive all rights of subrogation against the City, its officers, officials, employees and volunteers for losses paid under the terms of this policy which arises from the work performed by the named insured for the City. NOTE: You cannot be added as an additional insured on as workers’ compensation policy. C. For any claims related to this project, the Contractor’s insurance coverage shall be primary insurance with respect to the City, its officers, officials, employees, and volunteers. Any insurance or self-insurance maintained by the City, its officers, officials, employees, or volunteers shall be in excess of the Contractor’s insurance and shall not contribute with it. D. Each insurance policy required by this clause shall be endorsed to state that coverage shall not be canceled by either party, except after thirty (30) days’ prior written notice by certified mail, return receipt requested, has been given to the City. E. Note: (This protects the Contractor) –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 Civil Code. F. Course of construction policies shall contain the following provisions: 1) The City shall be named as loss payee. 2) The insurer shall waive all rights of subrogation against the City. VI. RATING – Acceptability of Insurers Insurance is to be placed with admitted California insurers with a current A.M. Best’s rating of no less than A- for financial strength, AA for long-term credit rating and AMB-1 for short-term credit rating. VII. Verification of Coverage Contractor shall furnish the City with original certificates and amendatory endorsements affecting coverage required by this clause. The endorsements should be on forms provided by the City. If endorsements are on forms other than the City’s forms, those endorsements must provide coverage that is equivalent to or better than the forms requested by the City. All certificates and endorsements are to be received and approved by the City before work commences. The City reserves the right to require complete, certified copies of all required insurance policies, including endorsements affecting the coverage required by these specifications at any time. VIII. Subcontractors Contractor shall include all subcontractors as insured under its policies or shall furnish separate certificates and endorsements for each subcontractor. All coverage for subcontractors shall be subject to all of the requirements stated herein. If you have questions regarding our insurance requirements contact: Risk Manager 707) 463-62844 FAX (707) 463-6204 Reviewed: 10/8/21 Page 60 of 858 ATTACHMENT 4 RESOLUTION NO. 2022 - XX RESOLUTION OF THE CITY COUNCIL OF THE CITY OF UKIAH APPROVING THE QUALIFIED CONTRACTORS LIST FOR THE 2022 CALENDAR YEAR WHEREAS, under Ukiah City Code (UCC) sections §1541 - 1543, the City Clerk must request licensed contractors who are qualified to perform public work under contract with the City of Ukiah to submit their names, addresses, phone numbers, type of work in which they are interested, and license number; and WHEREAS, the City Council is required to adopt a list of qualified contractors, identified according to categories of work; and WHEREAS, the City Clerk has published the notice as required in UCC Section §1541 and compiled a list of qualified contractors based on information submitted in response to said notice; and WHEREAS, the City Council finds and determines that the list as compiled complies with the requirements of the City Code and Public Contracts Code Section §22034(a) and shall constitute the City of Ukiah Contractors List for use in providing notice under the informal bidding procedure authorized in UCC Section §1543. NOW, THEREFORE, BE IT RESOLVED, that the list attached to this resolution as “Exhibit A” is the Qualified Contractors List which is sorted by class for the City of Ukiah for the calendar year 2022, and City Staff is authorized and required to continuously update the list throughout the year. PASSED AND ADOPTED this 19th day of January, 2022, by the following roll call vote: AYES: NOES: ABSENT: ABSTAIN: Jim O. Brown, Mayor ATTEST: __ Kristine Lawler, City Clerk/CMC 1 Page 61 of 858 Company Address 1 City State Class State License Expiration State License No. Class A - General Engineering A - General Engineering American Asphalt Repair & Resurfacing C24200 Clawiter Road Hayward CA A - General Engineering 5/31/2023 439591 American Pavement Systems Inc 1012 11th Street Ste. Modesto CA A - General Engineering 2/28/2022 943792 Argonaut Constructors P O Box 639 Santa Rosa CA A - General Engineering 12/31/2021 171432 Bartley Pump, Inc.4000 South Moorland Avenue Santa Rosa CA A - General Engineering 12/31/2023 1033562 BEST Contracting Services, Inc.19027 S. Hamilton Ave. Gardena CA A - General Engineering 5/31/2022 456263 Bowen Engineering and Environmental 4664 S. Cedar Avenue Fresno CA A - General Engineering 1/31/2023 656741 C.V. Larsen Co. 1846 Ludwig Avenue Santa Rosa CA A - General Engineering 5/31/2022 646209 Coleman Environmental Engineering, Inc.P O BOX 1020 Upper Lake CA A - General Engineering 6/30/2022 764005 Commercial Pump & Mechanical P O BOX 7947 Chico CA A - General Engineering 3/31/2023 921066 CWS Construction Group, Inc. 42 Digital Drive, Ste 1 Novato CA A - General Engineering 4/30/2023 811153 EBA Engineering 825 Sonoma Ave., Ste. C Santa Rosa CA A - General Engineering 1/31/2023 662725 Ferranti Construction, Inc. P O BOX 259 Redwood Valley CA A - General Engineering 3/31/2023 385543 Fort Bragg Electric, Inc. P O BOX 1878 Fort Bragg CA A - General Engineering 7/31/2022 391464 GSE Construction Company, Inc. 3990 Yosemite Ave Lathrop CA A - General Engineering 3/31/2023 401498 Ghilotti Construction 246 Ghilotti Avenue Santa Rosa CA A - General Engineering 5/31/2022 644515 Granite Construction Company 1324 S. State Street Ukiah CA A - General Engineering 5/31/2023 89 Gregg Simpson Trucking 11 Highland Ct Ukiah CA A - General Engineering 9/30/2023 650339 Harvest Energy Services 520 Zang Street, Ste 200 Broomfield CO A - General Engineering 6/30/2023 1077501 Hanford Applied Resporation & Conservation 755 Baywood Drive, Ste. 380 Petaluma CA A - General Engineering 2/28/2022 461167 Intermountain Slurry Seal, Inc.585 West Beach Street Watsonville CA A - General Engineering 1/31/2022 462443 Live Oak Utility Infrastructure, LLC 3450 Broad St., #104 San Luis Obispo CA A - General Engineering 9/30/2023 1057965 MBC Contruction Co, Inc.3342 N. State Street Ukiah CA A - General Engineering 4/30/2022 945554 Mendocino Construction Services, Inc. P O BOX 1517 W illits CA A - General Engineering 7/31/2021 443396 Meyer General Engineering Construction 701 Spanish Canyon Road Ukiah CA A - General Engineering 4/30/2023 712845 Northwest Construction, Inc.9011 Colony Drive Redwood Valley CA A - General Engineering 10/31/2023 865329 Oak Grove Construction 431 Payran Street, Ste. 101 Petaluma CA A - General Engineering 6/30/2023 406464 Pacific Earthscape (aka Ford Logging, Inc 1225 Central Ave. #11 McKinleyville CA A - General Engineering 4/30/2021 793279 Paulson Excavating, Inc. P.O. Box 339 Albion CA A - General Engineering 7/31/2022 425362 Pavement Coatings Co. 10240 San Sevaine Way Jurupa Valley CA A - General Engineering 9/30/2022 303609 Pierson Company 1200 W. Harris St.Eureka CA A - General Engineering 3/31/2022 265024 RaPiD General Engineering 3072 Research Way, #54 Carson City NV A - General Engineering 4/30/2023 982748 Rege Construction, Inc.600 Santana Dr. Cloverdale CA A - General Engineering 10/31/2022 786253 Roberts Mechanical & Electrical, Inc. 355 Kunzler Ranch Road, Ste. E Ukiah CA A - General Engineering 2/28/2023 556014 Sierra Nevada Construction Inc. P O BOX 50760 Sparks NV A - General Engineering 5/31/2022 593393 Siri Grading & Paving, Inc. P O BOX 3638 Santa Rosa CA A - General Engineering 1/31/2024 325681 Summit Signal, Inc. 260 Margie Drive W illits CA A - General Engineering 7/31/2022 842536 Team Ghilotti, Inc.2531 Petaluma Blvd., So. Petaluma CA A - General Engineering 4/30/2023 895384 Telstar Instruments 4017 Vista Park Court Sacramento CA A - General Engineering 5/31/2022 422364 TerraCon Constructors, Inc. P O BOX 276 Healdsburg CA A - General Engineering 11/30/2023 562511 Valley Paving P O BOX 559; 2601 Road E Redwood Valley CA A - General Engineering 7/31/2023 674411 Wahlund Construction, Inc. P.O. Box 6486 Eureka CA A - General Engineering 9/20/2022 678993 West Coast Environmental 3181 Fitzgerald Road Rancho Cordova CA A - General Engineering 2/28/2022 718733 Western Water Constructors, Inc.707 Aviation Boulevard Santa RosaCA A - General Engineering 4/30/2022 188068 WestPac Construction 1349 Lily Street Healdsburg CA A - General Engineering 9/30/2023 1058561 Wipf Construction P O BOX 234 Ukiah CA A - General Engineering 11/30/2023 629598 Wylatti Resource Management, Inc. P O BOX 575 Cemetary Lane CoveloCAA - General Engineering 6/30/2023 934597 Class ASB - Asbestos Removal Certification Class ASB - Asbestos Removal Certification CITY OF UKIAH'S 2022 QUALIFIED CONTRACTORS LIST 2 Page 62 of 858 Company Address 1 City State Class State License Expiration State License No. CITY OF UKIAH'S 2022 QUALIFIED CONTRACTORS LIST Bowen Engineering and Environmental 4664 S. Cedar Avenue Fresno CA ASB - Asbestos Removal Certification 1/31/2023 656741 Pierson Company 1200 W. Harris St.Eureka CA ASB - Asbestos Removal Certification 3/31/2022 265024 Solano County Roofing 4349 Cordelia Rd.Fairfield CA ASB - Asbestos Removal Certification 7/31/2022 495355 Wahlund Construction, Inc.P.O. Box 6486 Eureka CA ASB - Asbestos Removal Certification 9/20/2022 678993 West Coast Environmental 3181 Fitzgerald Road Rancho Cordova CA ASB - Asbestos Removal Certification 2/28/2022 718733 Class B - General Building B - General Building Alcal Specialty Contracting, Inc.42950 Osgood Road Fremont CA B - General Building 11/30/2022 815286 Apperson Energy Management P O BOX 366 Redwood Valley CA B - General Building 11/30/2022 431271 Argonaut Constructors P O Box 639 Santa Rosa CA B - General Building 12/31/2021 171432 BEST Contracting Services, Inc.19027 S. Hamilton Ave. Gardena CA B - General Building 5/31/2022 456263 Bowen Engineering and Environmental 4664 S. Cedar Avenue Fresno CA B - General Building 1/31/2023 656741 Busch Construction & Electric 266 Terra Verde Court Redwood Valley CA B - General Building 5/31/2023 404336 CWS Construction Group, Inc. 42 Digital Drive, Ste 1 Novato CA B - General Building 4/30/2023 811153 Carr's Construction Service, Inc. 3165 Calistoga Rd. Santa Rosa CA B - General Building 3/31/2022 556444 Coastal Mountain Electric 14832 Lakeshore Dr. Clearlake CA B - General Building 3/31/2023 507105 Cupples & Sons Construction, Inc. 221 Olive Ln., #G Ukiah CA B - General Building 4/30/2022 806992 Enable Energy, Inc. (aka BayWa R.E. Energy Solutions, Inc.)1101 National Dr., Ste B Sacramento CA B - General Building 2/28/2022 990593 Ferranti Construction, Inc. P O BOX 259 Redwood Valley CA B - General Building 3/31/2023 385543 Fort Bragg Electric, Inc.P O BOX 1878 Fort Bragg CA B - General Building 7/31/2022 391464 FRC, Inc. 9680 Old Redwood Hwy Windsor CA B - General Building 4/30/2022 715667 GCCI, Inc. P O Box 11039 Santa Rosa CA B - General Building 11/30/2022 729437 GMH Builders, Inc.P O Box 1773 Sonoma CA B - General Building 7/31/2022 1016384 GSE Construction Company, Inc. 3990 Yosemite Ave Lathrop CA B - General Building 3/31/2023 401498 Granite Construction Company 1324 S. State Street Ukiah CA B - General Building 5/31/2023 89 Harbert Roofing, Inc.19799 Hirsch Ct.Anderson CA B - General Building 10/31/2022 696974 JB Jordan & Associates P O BOX 3629 Eureka CA B - General Building 12/31/2022 955247 Kirby Construction Company 625 Ware Ave.Santa Rosa CA B - General Building 4/30/2022 812509 Menton Builders, Inc. P O BOX 871 Ukiah CA B - General Building 8/31/2023 381334 Midstate Construction Corporation 1180 Holm Road Petaluma CA B - General Building 7/31/2023 89455 Nor-Cal Pump & Well Drilling, Inc. 1325 Barry Road Yuba City CA B - General Building 1/31/2022 908591 North Coast Floor & Tile 2510 Broadway Eureka CA B - General Building 5/31/2022 808031 Oak Grove Construction 431 Payran Street, Ste. 101 Petaluma CA B - General Building 6/30/2023 406464 Pierson Company 1200 W. Harris St.Eureka CA B - General Building 3/31/2022 265024 RCM Fire Protection, Inc.350 Enterprise Pl Tracy CA B - General Building 4/30/2023 793205 Sack Concrete Construction 1150 Hasting Road Ukiah CA B - General Building 8/31/2023 625555 Solano County Roofing 4349 Cordelia Rd. Fairfield CA B - General Building 7/31/2022 495355 Telstar Instruments 4017 Vista Park Court Sacramento CA B - General Building 5/31/2022 422364 TerraCon Constructors, Inc. P O BOX 276 Healdsburg CA B - General Building 11/30/2023 562511 Ukiah Electric 2000 Industry Road Ukiah CA B - General Building 4/30/2022 713241 Valley Paving P O BOX 559; 2601 Road E Redwood Valley CA B - General Building 7/31/2023 674411 Wahlund Construction, Inc.P.O. Box 6486 Eureka CA B - General Building 9/20/2022 678993 West Coast Environmental 3181 Fitzgerald Road Rancho Cordova CA B - General Building 2/28/2022 718733 Wright Contracting LLC 3020 Dutton Ave. Santa Rosa CA B - General Building 4/30/2023 1025609 Building Exchanges Building Exchanges Construction BidBoard, Inc.11622 El Camino Real, Ste 100 San Diego CA Building Exchanges Dodge Data & Analytics 2860 S. State Hwy 161, Ste. 160 #501 Grand Prairie TX Building Exchanges Humboldt Builders Exchange 1213 5th Street Eureka CA Building Exchanges North Coast Builders Exchange 1030 Apollo Way Santa Rosa CA Building Exchanges 3 Page 63 of 858 Company Address 1 City State Class State License Expiration State License No. CITY OF UKIAH'S 2022 QUALIFIED CONTRACTORS LIST Marin Builders Association 660 Las Gallinas Avenue San Rafael CA Building Exchanges Placer County Contractors Assocation, Inc.10656 Industrial Ave., Suite 160 Roseville CA Building Exchanges Bay Area Builders Exchange 3055 Alvarado Street San Leandro CA Building Exchanges Builders Exchange of Stockton 4561 Quail Lake Dr., Ste B2 Stockton CA Building Exchanges Sacramento Regional Builders Exchange 5370 Elvas Ave. Sacramento CA Building Exchanges The San Francisco Builders Exchange 850 South Van Ness Avenue San Francisco CA Building Exchanges Shasta Builders Exchange 5800 Airport Road Redding CA Building Exchanges Valley Contractors Exchange 951 E. Eighth Street Chico CA Building Exchanges Class C-2 Insulation & Acoustical C-02 Insulation & Acoustical Alcal Specialty Contracting, Inc.42950 Osgood Road Fremont CA C-02 Insulation & Acoustical 11/30/2022 815286 Apperson Energy Management P O BOX 366 Redwood Valley CA C-02 Insulation & Acoustical 11/30/2022 431271 Granite Construction Company 1324 S. State Street Ukiah CA C-02 Insulation & Acoustical 5/31/2023 89 Solano County Roofing 4349 Cordelia Rd. Fairfield CA C-02 Insulation & Acoustical 7/31/2022 495355 West Coast Environmental 3181 Fitzgerald Road Rancho Cordova CA C-02 Insulation & Acoustical 2/28/2022 718733 Class C-4 Boiler, Hot Water Heating & Steam Fitting C-04 Boiler, Hot Water Heating & Steam Fitting CBS Plumbing & Heating, Inc. P.O. Box 2385 Santa Rosa CA C-04 Boiler, Hot Water Heating & Steam Fitting 3/31/2022 294171 Intercounty Mechanical & Electrical, Inc.189 Wabash Avenue Ukiah CA C-04 Boiler, Hot Water Heating & Steam Fitting 12/31/2022 926337 Roberts Mechanical & Electrical, Inc. 355 Kunzler Ranch Road, Ste. E Ukiah CA C-04 Boiler, Hot Water Heating & Steam Fitting 2/28/2023 556014 Class C-5 Carpentry C-05 Carpentry Pierson Company 1200 W. Harris St.Eureka CA C-05 Carpentry 3/31/2022 265024 Class C-6 Cabinet & Mill Work C-06 Cabinet & Mill Work Orland Cabinet Shop, Inc. 35 A Streeet Orland CA C-06 Cabinet & Mill Work 6/30/2023 189381 C-07 Low Voltage Communication & Wiring Systems Gaynor Telesystems, Inc.9650 Tanqueray Ct.Redding CA C-07 Low Voltage Communication & Wiring Systems 8/31/2023 339907 KS Telecom, Inc.P.O. Box 330 Penryn CA C-07 Low Voltage Communication & Wiring Systems 2/28/2023 790922 PCD 1032 Maxwell Drive Santa Rosa CA C-07 Low Voltage Communication & Wiring Systems 4/30/2022 527657 TEC-COM Low Voltage Solutions, Inc.2045 Live Oak Blvd Yuba City CA C-07 Low Voltage Communication & Wiring Systems 6/30/2023 769824 Telecom Services Co.710 South State Street Suite D Ukiah CA C-07 Low Voltage Communication & Wiring Systems 1/31/2022 802970 Telstar Instruments 4017 Vista Park Court Sacramento CA C-07 Low Voltage Communication & Wiring Systems 5/31/2022 422364 Tri Path Technology Group 3075 Cohasset Rd., Ste 1 Chico CA C-07 Low Voltage Communication & Wiring Systems 7/31/2022 1016628 World Telecom & Surveillance, Inc.1819 Keystone Court Redding CA C-07 Low Voltage Communication & Wiring Systems 6/30/2022 793485 Class C-8 Concrete C-08 Concrete Ferranti Construction, Inc. P O BOX 259 Redwood Valley CA C-08 Concrete 3/31/2023 385543 Ghilotti Construction 246 Ghilotti Avenue Santa Rosa CA C-08 Concrete 5/31/2022 644515 Granite Construction Company 1324 S. State Street Ukiah CA C-08 Concrete 5/31/2023 89 Pierson Company 1200 W. Harris St.Eureka CA C-08 Concrete 3/31/2022 265024 Sack Concrete Construction 1150 Hasting Road Ukiah CA C-08 Concrete 8/31/2023 625555 Class C-9 Drywall C-09 Drywall Pacific Drywall P O BOX 503 Redwood Valley CA C-09 Drywall 2/28/2022 911180 West Coast Environmental 3181 Fitzgerald Road Rancho Cordova CA C-09 Drywall 2/28/2022 718733 Class C-10 General Electrical C10 General Electrical Bartley Pump, Inc.4000 South Moorland Avenue Santa Rosa CA C10 General Electrical 12/31/2023 1033562 Bowen Engineering and Environmental 4664 S. Cedar Avenue Fresno CA C10 General Electrical 1/31/2023 656741 Busch Construction & Electric 266 Terra Verde Court Redwood Valley CA C10 General Electrical 5/31/2023 404336 Coastal Mountain Electric 14832 Lakeshore Dr. Clearlake CA C10 General Electrical 3/31/2023 507105 Enable Energy, Inc. (aka BayWa R.E. Energy Solutions, Inc.)1101 National Dr., Ste B Sacramento CA C10 General Electrical 2/28/2022 990593 Class C-7 Low Voltage Communication & Wiring Systems 4 Page 64 of 858 Company Address 1 City State Class State License Expiration State License No. CITY OF UKIAH'S 2022 QUALIFIED CONTRACTORS LIST Fort Bragg Electric, Inc.P O BOX 1878 Fort Bragg CA C10 General Electrical 7/31/2022 391464 Granite Construction Company 1324 S. State Street Ukiah CA C10 General Electrical 5/31/2023 89 Intercounty Mechanical & Electrical, Inc.189 Wabash Avenue Ukiah CA C10 General Electrical 12/31/2022 926337 Joe Lunardi Electric, Inc.5334 Sebastopol Rd.Santa Rosa CA C10 General Electrical 3/31/2023 315543 KS Telecom, Inc.P.O. Box 330 Penryn CA C10 General Electrical 2/28/2023 790922 Lawrence Electric, Inc.3720 Christy Lane Ukiah CA C10 General Electrical 2/28/2022 715591 Mike Brown Electric Company 561-A Mercantile Drive Cotati CA C10 General Electrical 4/30/2022 306767 Northern Electric, Inc.3190 Regional Parkway Santa Rosa CA C10 General Electrical 3/31/2022 437655 PCD 1032 Maxwell Drive Santa Rosa CA C10 General Electrical 4/30/2022 527657 Roberts Mechanical & Electrical, Inc. 355 Kunzler Ranch Road, Ste. E Ukiah CA C10 General Electrical 2/28/2023 556014 Spencer Electric P O BOX 42 Cutten CA C10 General Electrical 6/30/2022 917603 SPX Transformer Solutions 400 S. Prairie Avenue Waukesha WI C10 General Electrical 5/31/2022 839522 Summit Signal, Inc.260 Margie Drive W illits CA C10 General Electrical 7/31/2022 842536 Telstar Instruments 4017 Vista Park Court Sacramento CA C10 General Electrical 5/31/2022 422364 Ukiah Electric 2000 Industry Road Ukiah CA C10 General Electrical 4/30/2022 713241 Western Water Constructors, Inc.707 Aviation Boulevard Santa RosaCA C10 General Electrical 4/30/2022 188068 Class C-11 Elevator Installation C11 Elevator Installation Arrow Lift of California 101 Sunnyside Ave., Ste. 101 Clovis CA C11 Elevator Installation 8/31/2022 995486 Class C-12 Earthwork & Paving C12 Earthwork & Pavingg Inc.690 Todd Road Lakeport CA C12 Earthwork & Paving 7/31/2023 1056341 Pacific Earthscape (aka Ford Logging, Inc.)1225 Central Ave. #11 McKinleyville CA C12 Earthwork & Paving 4/30/2021 793279 Ghilotti Construction 246 Ghilotti Avenue Santa Rosa CA C12 Earthwork & Paving 5/31/2022 644515 Granite Construction Company 1324 S. State Street Ukiah CA C12 Earthwork & Paving 5/31/2023 89 Mike Brown Electric Company 561-A Mercantile Drive Cotati CA C12 Earthwork & Paving 4/30/2022 306767 Class C-13 Fencing C13 Fencing Enable Energy, Inc. (aka BayWa R.E. Energy Solutions, Inc.)1101 National Dr., Ste B Sacramento CA C13 Fencing 2/28/2022 990593 Class C-15 Flooring & Floor Covering C15 Flooring & Floor Covering JB Jordan & Associates P O BOX 3629 Eureka CA C15 Flooring & Floor Covering 12/31/2022 955247 Colusa Floor Covering 678 N Palora Ave. Yuba City CA C15 Flooring & Floor Covering 5/31/2022 364608 North Coast Floor & Tile 2510 Broadway Eureka CA C15 Flooring & Floor Covering 5/31/2022 808031 Class C-16 Fire Protecting Contractor C16 Fire Protecting Contractor Bartley Pump, Inc.4000 South Moorland Avenue Santa Rosa CA C16 Fire Protecting Contractor 12/31/2023 1033562 CBS Plumbing & Heating, Inc.P.O. Box 2385 Santa Rosa CA C16 Fire Protecting Contractor 3/31/2022 294171 GSE Construction Company, Inc. 3990 Yosemite Ave Lathrop CA C16 Fire Protecting Contractor 3/31/2023 401498 RCM Fire Protection, Inc.350 Enterprise Pl Tracy CA C16 Fire Protecting Contractor 4/30/2023 793205 Wipf Construction P O BOX 234 Ukiah CA C16 Fire Protecting Contractor 11/30/2023 629598 Class C-17 Glazing C17 Glazing Alcal Specialty Contracting, Inc.42950 Osgood Road Fremont CA C17 Glazing 11/30/2022 815286 Apperson Energy Management P O BOX 366 Redwood Valley CA C17 Glazing 11/30/2022 431271 BEST Contracting Services, Inc.19027 S. Hamilton Ave. Gardena CA C17 Glazing 5/31/2020 456263 C20 Warm-Air Heating, Ventilating & Air-Conditioning CBS Plumbing & Heating, Inc. P.O. Box 2385 Santa Rosa CA C20 Warm-Air Heating, Ventilating & Air-3/31/2022 294171 Intercounty Mechanical & Electrical, Inc.189 Wabash Avenue Ukiah CA C20 Warm-Air Heating, Ventilating & Air-12/31/2022 926337 JMS Mechanical, Inc. 538 Martin Avenue, Suite D Rohnert Park CA C20 Warm-Air Heating, Ventilating & Air-8/31/2022 811562 Roberts Mechanical & Electrical, Inc. 355 Kunzler Ranch Road, Ste. E Ukiah CA C20 Warm-Air Heating, Ventilating & Air-2/28/2023 556014 Class C-21 Building Moving & Wrecking C21 Building Moving & Wrecking Class C-20 Warm-Air Heating, Ventilating & Air-Conditioning 5 Page 65 of 858 Company Address 1 City State Class State License Expiration State License No. CITY OF UKIAH'S 2022 QUALIFIED CONTRACTORS LIST Bowen Engineering and Environmental 4664 S. Cedar Avenue Fresno CA C21 Building Moving & Wrecking 1/31/2023 656741 Coleman Environmental Engineering, Inc.P O BOX 1020 Upper Lake CA C21 Building Moving & Wrecking 6/30/2022 764005 Ghilotti Construction 246 Ghilotti Avenue Santa Rosa CA C21 Building Moving & Wrecking 5/31/2022 644515 Granite Construction Company 1324 S. State Street Ukiah CA C21 Building Moving & Wrecking 5/31/2023 89 Mendocino Construction Services, Inc.P O BOX 1517 Willits CA C21 Building Moving & Wrecking 7/31/2023 443396 West Coast Environmental 3181 Fitzgerald Road Rancho Cordova CA C21 Building Moving & Wrecking 2/28/2022 718733 Class C-22 Asbestos Abatement C22 - ASBESTOS ABATEMENT Bowen Engineering and Environmental 4664 S. Cedar Avenue Fresno CA C22 - ASBESTOS ABATEMENT 1/31/2023 656741 Wahlund Construction, Inc.P.O. Box 6486 Eureka CA C22 - ASBESTOS ABATEMENT 9/20/2022 678993 West Coast Environmental 3181 Fitzgerald Road Rancho Cordova CA C22 - ASBESTOS ABATEMENT 2/28/2022 718733 Class C-23 Ornamental Metals Class C-23 Ornamental Metals N/A Class C-27 Landscaping Class C-27 Landscaping Granite Construction Company 1324 S. State Street Ukiah CA C27 Landscaping 5/31/2023 89 Hanford Applied Resporation & Conservation 755 Baywood Drive, Ste. 380 Petaluma CA C27 Landscaping 2/28/2022 461167 Johnson's Custom Landscaping, Inc. 591 Riverside Drive Ukiah CA C27 Landscaping 3/31/2023 748725 Quality Landscape Company 11821 Westside Potter Valley Road Potter Valley CA C27 Landscaping 11/30/2022 548558 Sangiacomo Landscape 3150 Guidiville Road Ukiah CA C27 Landscaping 1/31/2023 367676 Class C-28 Lock & Security Equipment Class C-28 Lock & Security Equipment N/A Class C-29 Masonry Class C-29 Masonry Granite Construction Company 1324 S. State Street Ukiah CA C29 Masonry 5/31/2023 89 Class C-31 Construction Zone Traffic Control Granite Construction Company 1324 S. State Street Ukiah CA C31 Construction Zone Traffic Control 5/31/2023 89 Live Oak Utility Infrastructure, LLC 3450 Broad St., #104 San Luis Obispo CA C31 Construction Zone Traffic Control 9/30/2023 1057965 Paulson Excavating, Inc. P.O. Box 339 Albion CA C31 Construction Zone Traffic Control 7/31/2022 425362 Wipf Construction P O BOX 234 Ukiah CA C31 Construction Zone Traffic Control 11/30/2023 629598 Class C-32 Parking & Highway Improvement American Asphalt Repair & Resurfacing Co., Inc.24200 Clawiter Road Hayward CA C32 Parking & Highway Improvement 5/31/2023 439591 Argonaut Constructors P O Box 639 Santa Rosa CA C32 Parking & Highway Improvement 12/31/2021 171432 Pavement Coatings Co. 10240 San Sevaine Way Jurupa Valley CA C32 Parking & Highway Improvement 9/30/2022 303609 Class C-33 Painting & Decorating Class C-33 Painting & Decorating Bowen Engineering and Environmental 4664 S. Cedar Avenue Fresno CA C33 Painting & Decorating 1/31/2023 656741 Dunn Right Painting, Inc.75 D Kunzler Ranch Road Ukiah CA C33 Painting & Decorating 9/30/2023 691040 Zayco Performance Coatings 4501 Robertson Ave. Sacramento CA C33 Painting & Decorating Class C-34 Pipline Class C-34 Pipline Mike Brown Electric Company 561-A Mercantile Drive Cotati CA C34 Pipeline 4/30/2022 306767 Class C-35 Lathing and Plastering Class C-35 Lathing and Plastering Alcal Specialty Contracting, Inc.42950 Osgood Road Fremont CA C35 Lathing and Plastering 11/30/2022 815286 Granite Construction Company 1324 S. State Street Ukiah CA C35 Lathing and Plastering 5/31/2023 89 Class C-36 Plumbing Class C-36 Plumbing Aquamakx Plumbing P O BOX 761 Redwood Valley CA C36 Plumbing 5/31/2023 932392 CBS Plumbing & Heating, Inc. P.O. Box 2385 Santa Rosa CA C36 Plumbing 3/31/2022 294171 Coleman Plumbing P.O. Box 754 Redwood Valley CA C36 Plumbing 12/31/2023 989129 Fort Bragg Electric, Inc. P O BOX 1878 Fort Bragg CA C36 Plumbing 7/31/2022 391464 GSE Construction Company, Inc. 3990 Yosemite Ave Lathrop CA C36 Plumbing 3/31/2023 401498 Granite Construction Company 1324 S. State Street Ukiah CA C36 Plumbing 5/31/2023 89 Class C-31 Construction Zone Traffic Control Class C-32 Parking & Highway Improvement 6 Page 66 of 858 Company Address 1 City State Class State License Expiration State License No. CITY OF UKIAH'S 2022 QUALIFIED CONTRACTORS LIST Intercounty Mechanical & Electrical, Inc.189 Wabash Avenue Ukiah CA C36 Plumbing 12/31/2022 926337 R G Plumbing Group, Inc.461 Todd Road Santa Rosa CA C36 Plumbing 2/28/2022 802006 Roberts Mechanical & Electrical, Inc. 355 Kunzler Ranch Road, Ste. E Ukiah CA C36 Plumbing 2/28/2023 556014 Weeks Drilling and Pump Co.6100 Highway 12 Sebastopol CA C36 Plumbing 9/30/2022 177681 Class C-38 Refrigeration Class C-38 Refrigeration Intercounty Mechanical & Electrical, Inc.189 Wabash Avenue Ukiah CA C38 Refrigeration 12/31/2022 926337 Class C-39 Roofing Class C-39 Roofing Alcal Specialty Contracting, Inc.42950 Osgood Road Fremont CA C39 Roofing 11/30/2022 815286 B. A. S. Roofing 425 Pomo Drive Ukiah CA C39 Roofing 1/31/2023 927007 BEST Contracting Services, Inc.19027 S. Hamilton Ave. Gardena CA C39 Roofing 5/31/2020 456263 Bowen Engineering and Environmental 4664 S. Cedar Avenue Fresno CA C39 Roofing 1/31/2023 656741 Foam Experts Roofing, Inc. 1107 S. Wilbur St. Mesa CA C39 Roofing 11/30/2022 501167 Granite Construction Company 1324 S. State Street Ukiah CA C39 Roofing 5/31/2023 89 Harbert Roofing, Inc.19799 Hirsch Ct.Anderson CA C39 Roofing 10/31/2022 696974 Lucerne Roofing 74 Soda Bay Rd Lakeport CA C39 Roofing 4/30/2022 388686 Solano County Roofing 4349 Cordelia Rd. Fairfield CA C39 Roofing 7/31/2022 495355 Class C-42 Sanitation Systems Class C-42 Sanitation Systems Ghilotti Construction 246 Ghilotti Avenue Santa Rosa CA C42 Sanitation Systems 5/31/2022 644515 Granite Construction Company 1324 S. State Street Ukiah CA C42 Sanitation Systems 5/31/2023 89 Class C-43 Sheet Metal Class C-43 Sheet Metal BEST Contracting Services, Inc.19027 S. Hamilton Ave. Gardena CA C43 Sheet Metal 5/31/2020 456263 CBS Plumbing & Heating, Inc. P.O. Box 2385 Santa Rosa CA C43 Sheet Metal 3/31/2022 294171 JMS Mechanical, Inc. 539 Martin Avenue, Suite D Rohnert Park CA C43 Sheet Metal 8/31/2022 811562 Solano County Roofing 4349 Cordelia Rd.Fairfield CA C43 Sheet Metal 7/31/2022 495355 Class C-45 Electrical Signs Class C-45 Electrical Signs Granite Construction Company 1324 S. State Street Ukiah CA C45 Electrical Signs 5/31/2023 89 Class C-46 Solar Class C-46 Solar Enable Energy, Inc. (aka BayWa R.E. Energy Solutions, Inc.)1101 National Dr., Ste B Sacramento CA C46 Solar 2/28/2022 990593 Class C-50 Steel Reinforcing Class C-50 Steel Reinforcing Granite Construction Company 1324 S. State Street Ukiah CA C50 Steel Reinforcing 5/31/2023 89 Class C-51 Structural Steel Contractor Class C-51 Structural Steel Contractor Granite Construction Company 1324 S. State Street Ukiah CA C51 Structural Steel Contractor 5/31/2023 89 Class C-53 Swimming Pool Class C-53 Swimming Pool N/A Class C-54 Ceramic & Mosaic Tile Class C-54 Ceramic & Mosaic Tile Colusa Floor Covering 678 N Palora Ave.Yuba City CA C54 Ceramic & Mosaic Tile 5/31/2022 364608 North Coast Floor & Tile 2510 Broadway Eureka CA C54 Ceramic & Mosaic Tile 5/31/2022 808031 Class C-55 Water Conditioning Class C-55 Water Conditioning N/A Class C-57 Water Well Drilling Class C-57 Water Well Drilling Bartley Pump, Inc.4000 South Moorland Avenue Santa Rosa CA C57 Water Well Drilling 12/31/2023 1033562 Commercial Pump & Mechanical P O BOX 7947 Chico CA C57 Water Well Drilling 3/31/2023 921066 Granite Construction Company 1324 S. State Street Ukiah CA C57 Water Well Drilling 5/31/2023 89 Nor-Cal Pump & Well Drilling, Inc. 1325 Barry Road Yuba City CA C57 Water Well Drilling 1/31/2022 908591 Weeks Drilling and Pump Co. P O BOX 176 Sebastopol CA C57 Water Well Drilling 9/30/2022 177681 Class D-06 Concrete Related Services Class D-06 Concrete Related Services Spencer Electric P O BOX 42 Cutten CA D06 - Concrete Related Services 6/30/2022 917603 Class D-09 Drilling, Blasting and Oil Field Work Class D-09 Drilling, Blasting and Oil Field Work 7 Page 67 of 858 Company Address 1 City State Class State License Expiration State License No. CITY OF UKIAH'S 2022 QUALIFIED CONTRACTORS LIST Mike Brown Electric Company 561-A Mercantile Drive Cotati CA D09 Drilling, Blasting and Oil Field Work 4/30/2022 306767 Nor-Cal Pump & Well Drilling, Inc. 1325 Barry Road Yuba City CA D09 Drilling, Blasting and Oil Field Work 1/31/2022 908591 Class D-10 Elevated Floors Class D-10 Elevated Floors N/A Class D-12 Synthetic Products Class D-12 Synthetic Products Flexground Surfaces, Inc.2029 Opportunity Drive Ste 3 Roseville CA C61 / D12 Synthetic Products 5/31/2023 1003439 Class D-21 Machinery & Pumps C61 / D21 Machinery & Pumps Alcal Specialty Contracting, Inc.42950 Osgood Road Fremont CA C61 / D21 Machinery & Pumps 11/30/2022 815286 Commercial Pump & Mechanical P O BOX 7947 Chico CA C61 / D21 Machinery & Pumps 3/31/2023 921066 GSE Construction Company, Inc. 3990 Yosemite Ave Lathrop CA C61 / D21 Machinery & Pumps 3/31/2023 401498 Nor-Cal Pump & Well Drilling, Inc. 1325 Barry Road Yuba City CA C61 / D21 Machinery & Pumps 1/31/2022 908591 Weeks Drilling and Pump Co. P O BOX 176 Sebastopol CA C61 / D21 Machinery & Pumps 9/30/2022 177681 Class D-23 Medical Gas Systems Class D-23 Medical Gas Systems N/A Class D-24 Metal Products Class D-24 Metal Products N/A Class D-28 Doors, Gates & Activating Devices N/A Class D-31 Pole Installation & Maintenance N/A Class D-34 Prefabricated Equipment Class D-34 Prefabricated Equipment Alcal Specialty Contracting, Inc.42950 Osgood Road Fremont CA C61 / D-34 Prefabricated Equipment 11/30/2022 815286 Flexground Surfaces, Inc.2029 Opportunity Drive Ste 3 Roseville CA C61 / D-34 Prefabricated Equipment 5/31/2023 1003439 Class D-35 Pool and Spa Maintenance Class D-35 Pool and Spa Maintenance N/A Class D-38 Sand & Water Blasting Class D-38 Sand & Water Blasting Bowen Engineering and Environmental 4664 S. Cedar Avenue Fresno CA D38 Sand & Water Blasting 1/31/2023 656741 Class D-39 Scaffolding Class D-39 Scaffolding N/A Class D-40 Srvc Stn Equip & Maint Class D-40 Srvc Stn Equip & Maint N/A Class D-41 Siding and Decking Class D-41 Siding and Decking N/A Class D-42 Sign Installation Class D-42 Sign Installation Live Oak Utility Infrastructure, LLC 3450 Broad St., #104 San Luis Obispo CA D42 Non-Electrical Sign Installation 9/30/2023 1057965 Class D-49 Tree Service Class D-49 Tree Service Family Tree Resource, Inc. 1155 S Main St., Ste 102 W illits CA D49 Tree Service 1/31/2023 1048457 Family Tree Service, Inc.P O BOX 1325 Laytonville CA D49 Tree Service 2/28/2022 640013 Image Tree Service, Inc.564 Caletti Ave. Windsor CA D49 Tree Service 7/31/2023 719689 Wylatti Resource Management, Inc. P O BOX 575 Cemetary Lane CoveloCAD49 Tree Service 6/30/2023 934597 Class D-52 Window Covering Class D-64 Non Specialized Class D-64 Non Specialized N/A HAZ Hazardous Substance Removal Certification Argonaut Constructors P O Box 639 Santa Rosa CA HAZ Hazardous Substance Removal Certification 12/31/2023 171432 Bowen Engineering and Environmental 4664 S. Cedar Avenue Fresno CA HAZ Hazardous Substance Removal Certification 1/31/2023 656741 Coleman Environmental Engineering, Inc.P O BOX 1020 Upper Lake CA HAZ Hazardous Substance Removal Certification 6/30/2022 764005 EBA Engineering 825 Sonoma Ave., Ste. C Santa Rosa CA HAZ Hazardous Substance Removal Certification 1/31/2023 662725 Fort Bragg Electric, Inc. P O BOX 1878 Fort Bragg CA HAZ Hazardous Substance Removal Certification 7/31/2022 391464 HAZ Hazardous Substance Removal Certification Class D-28 Doors, Gates & Activating Devices Class D-31 Pole Installation & Maintenance 8 Page 68 of 858 Company Address 1 City State Class State License Expiration State License No. CITY OF UKIAH'S 2022 QUALIFIED CONTRACTORS LIST GSE Construction Company, Inc. 3990 Yosemite Ave Lathrop CA HAZ Hazardous Substance Removal Certification 3/31/2023 401498 Ghilotti Construction 246 Ghilotti Avenue Santa Rosa CA HAZ Hazardous Substance Removal Certification 5/31/2022 644515 Granite Construction Company 1324 S. State Street Ukiah CA HAZ Hazardous Substance Removal Certification 5/31/2023 89 Paulson Excavating, Inc. P.O. Box 339 Albion CA HAZ Hazardous Substance Removal Certification 7/31/2022 425362 Oak Grove Construction 431 Payran Street, Ste. 101 Petaluma CA HAZ Hazardous Substance Removal Certification 6/30/2023 406464 Siri Grading & Paving, Inc. P O BOX 3638 Santa Rosa CA HAZ Hazardous Substance Removal Certification 1/31/2024 325681 Team Ghilotti, Inc.2531 Petaluma Blvd., So. Petaluma CA HAZ Hazardous Substance Removal Certification 4/30/2023 895384 TerraCon Constructors, Inc. P O BOX 276 Healdsburg CA HAZ Hazardous Substance Removal Certification 11/30/2023 562511 Wahlund Construction, Inc. P.O. Box 6486 Eureka CA HAZ Hazardous Substance Removal Certification 9/20/2022 678993 West Coast Environmental 3181 Fitzgerald Road Rancho Cordova CA HAZ Hazardous Substance Removal Certification 2/28/2022 718733 HIC Home Improvement Certification N/A 9 Page 69 of 858 Page 1 of 2 Agenda Item No: 7.c. MEETING DATE/TIME: 1/19/2022 ITEM NO: 2021-1241 AGENDA SUMMARY REPORT SUBJECT: Notification to City Council of Contract No. 2021-235 with Cinquini & Passarino Inc. for Consulting and Surveying Services at the Electric Service Center on Hastings Rd., in the Amount of $17,500. DEPARTMENT: Electric Utility PREPARED BY: Diann Lucchetti, Administrative Secretary PRESENTER: Cindy Sauers, Electric Utility Director ATTACHMENTS: 1. COU# 2021-235 - Cinquini & Passarino, Inc - Complete 2. Amend. 1 Cinquini & Passarino, Inc - Land Surveying 2021-235-A1 - signed Summary: Council will receive notification of Contract No. 2021-235 for consulting and surveying services at the Electric Service Center on Hastings Rd. for the amount of $17,500. Background: Pursuant to the requirements of Section 1522 of the Municipal Code, Staff is reporting to City Council a contract with Cinquini & Passarino Inc. for consulting and surveying services in the amount of $17,500.00. Discussion: On May 5, 2021, the City Council awarded a contract for site improvements at the Electric Service Center to CWS Construction. Due to workload, the civil engineer who designed the project was unavailable to assist the City and provide quality control and analysis during the construction phase of the project. Staff contacted five civil engineering firms to provide this support. Cinquini and Passarino was the only firm who responded and was available to assist. On June 7, 2021, the City of Ukiah Electric Department entered into a contract (Attachment 1) with Cinquini & Passarino Inc. for consulting services related to land surveying and analysis during construction of the Electric Service Center Site Improvement Project at Hastings Road, Ukiah CA, for an amount not-to-exceed $10,000. On October 28, 2021, Amendment No. 1 to Contract No. 2021-235 (Attachment 2) was entered, revising the maximum dollar amount by an additional $7,500 for a revised total contract amount not-to-exceed $17,500. Recommended Action: Receive notification of Contract No. 2021-235 with Cinquini & Passarino Inc., for the amount of $17,500.00. BUDGET AMENDMENT REQUIRED: No CURRENT BUDGET AMOUNT: 80126100.80220.17023: $540,110 PROPOSED BUDGET AMOUNT: N/A FINANCING SOURCE: Electric CIP Fund PREVIOUS CONTRACT/PURCHASE ORDER NO.: Contract No. 2121-235 COORDINATED WITH: Mary Horger, Financial Services Manager Page 70 of 858 Page 2 of 2 Page 71 of 858 AGREEMENT FOR PROFESSIONAL CONSUL TING SERVICES COU No. 2021235 This Agreement, made and entered into this 7th day of June, 2021 ("Effective Date"), by and between CITY OF UKIAH, CALIFORNIA, hereinafter referred to as "City" and Cinquini & Passarino, a Corporation organized and in good standing under the laws of the state of California, hereinafter referred to as "Consultant". RECITALS This Agreement is predicated on the following facts: a.City requires consulting services related to land surveying and office analysis during construction of the Electric Service Center Site Improvement Project at 1350 Hastings Road, Ukiah CA 95482, APN 180-070-19. b.Consultant represents that it has the qualifications, skills, experience and properly licensed to provide these services, and is willing to provide them according to the terms of this Agreement. c.City and Consultant agree upon the Scope-of-Work and Work Schedule attached hereto as Attachment "A", describing contract provisions for the project and setting forth the completion dates for the various services to be provided pursuant to this Agreement. TERMS OF AGREEMENT 1.0 DESCRIPTION OF PROJECT 1.1 The Project is described in detail in the attached Scope-of-Work (Attachment "A"). 2.0 SCOPE OF SERVICES 2.1 As set forth in Attachment "A". 2.2. Additional Services. Additional services, if any, shall only proceed upon written agreement between City and Consultant. The written Agreement shall be in the form of an Amendment to this Agreement. 3.0 CONDUCT OF WORK 3.1 Time of Completion. Consultant shall commence performance of services as required by the Scope-of-Work upon receipt of a Notice to Proceed from City. Consultant shall complete the work to the City's reasonable satisfaction, even if contract disputes arise or Consultant contends it is entitled to further compensation. 4.0 COMPENSATION FOR SERVICES 4.1 Basis for Compensation. For the performance of the professional services of this Agreement, Consultant shall be compensated on a time and expense basis not to exceed a guaranteed maximum dollar amount of $10,000. Labor charges shall be based upon hourly billing rates for the various classifications of personnel employed by Consultant to perform the Scope of Work as set forth in the attached Attachment A, 1 Attachment 1 Page 72 of 858 COU No. 2021235 which shall include all indirect costs and expenses of every kind or nature, except direct expenses. The direct expenses and the fees to be charged for same shall be as set forth in Attachment A. Consultant shall complete the Scope of Work for the not-to­ exceed guaranteed maximum, even if actual time and expenses exceed that amount. 4.2 Changes. Should changes in compensation be required because of changes to the Scope-of-Work of this Agreement, the parties shall agree in writing to any changes in compensation. "Changes to the Scope-of-Work" means different activities than those described in Attachment "A" and not additional time to complete those activities than the parties anticipated on the date they entered this Agreement. 4.3 Sub-contractor Payment. The use of sub-consultants or other services to perform a portion of the work of this Agreement shall be approved by City prior to commencement of work. The cost of sub-consultants shall be included within guaranteed not-to-exceed amount set forth in Section 4.1. 4.4 Terms of Payment. Payment to Consultant for services rendered in accordance with this contract shall be based upon submission of monthly invoices for the work satisfactorily performed prior to the date of the invoice less any amount already paid to Consultant, which amounts shall be due and payable thirty (30) days after receipt by City. The invoices shall provide a description of each item of work performed, the time expended to perform each task, the fees charged for that task, and the direct expenses incurred and billed for. Invoices shall be accompanied by documentation sufficient to enable City to determine progress made and to support the expenses claimed. 5.0 ASSURANCES OF CONSULT ANT 5.1 Independent Contractor. Consultant is an independent contractor and is solely responsible for its acts or omissions. Consultant (including its agents, servants, and employees) is not the City's agent, employee, or representative for any purpose. It is the express intention of the parties hereto that Consultant is an independent contractor and not an employee, joint venturer, or partner of City for any purpose whatsoever. City shall have no right to, and shall not control the manner or prescribe the method of accomplishing those services contracted to and performed by Consultant under this Agreement, and the general public and all governmental agencies regulating such activity shall be so informed. Those provisions of this Agreement that reserve ultimate authority in City have been inserted solely to achieve compliance with federal and state laws, rules, regulations, and interpretations thereof. No such provisions and no other provisions of this Agreement shall be interpreted or construed as creating or establishing the relationship of employer and employee between Consultant and City. Consultant shall pay all estimated and actual federal and state income and self­ employment taxes that are due the state and federal government and shall furnish and pay worker's compensation insurance, unemployment insurance and any other benefits required by law for himself and his employees, if any. Consultant agrees to indemnify and hold City and its officers, agents and employees harmless from and against any claims or demands by federal, state or local government agencies for any such taxes or benefits due but not paid by Consultant, including the legal costs associated with defending against any audit, claim, demand or law suit. 2 Page 73 of 858 COU No. 2021235 Consultant warrants and represents that it is a properly licensed professional or professional organization with a substantial investment in its business and that it maintains its own offices and staff which it will use in performing under this Agreement. 5.2 Conflict of Interest. Consultant understands that its professional responsibility is solely to City. Consultant has no interest and will not acquire any direct or indirect interest that would conflict with its performance of the Agreement. Consultant shall not in the performance of this Agreement employ a person having such an interest. If the City Manager determines that the Consultant has a disclosure obligation under the City's local conflict of interest code, the Consultant shall file the required disclosure form with the City Clerk within 10 days of being notified of the City Manager's determination. 6.0 INDEMNIFICATION 6.1 Insurance Liability. Without limiting Consultant's obligations arising under Paragraph 6.2 Consultant shall not begin work under this Agreement until it procures and maintains for the full period of time allowed by law, surviving the termination of this Agreement insurance against claims for injuries to persons or damages to property, which may arise from or in connection with its performance under this Agreement. A.Minimum Scope of Insurance Coverage shall be at least as broad as: 1.Insurance Services Office ("ISO) Commercial General Liability Coverage Form No. CG 20 10 10 01 and Commercial General Liability Coverage - Completed Operations Form No. CG 20 37 10 01. 2.ISO Form No. CA 0001 (Ed. 1/87) covering Automobile Liability, Code 1 "any auto" or Code 8, 9 if no owned autos and endor sement CA 0025. 3.Worker's Compensation Insurance as required by the Labor Code of the State of California and Employers Liability Insurance. 4.Errors and Omissions liability insurance appropriate to the consultant's profession. Architects' and engineers' coverage is to be endorsed to include contractual liability. B.Minimum Limits of Insurance Consultant shall maintain limits no less than: 1.General Liability: $1,000,000 combined single limit per occurrence for bodily injury, personal injury and property damage including operations, products and completed operations. If Commercial General Liability Insurance or other form with a general aggregate limit is used, the general aggregate limit shall apply separately to the work performed under this Agreement, or the aggregate limit shall be twice the prescribed per occurrence limit. 2.Automobile Liability: $1,000,000 combined single limit per accident for bodily injury and property damage. 3 Page 74 of 858 C. COU No. 2021235 3.Worker's Compensation and Employers Liability: Worker's compensation limits as required by the Labor Code of the State of California and Employers Liability limits of $1,000,000 per accident. 4.Errors and Omissions liability: $1,000,000 per occurrence. Deductibles and Self-Insured Retentions Any deductibles or self-insured retentions must be declared to and approved by the City. At the option of the City, either the insurer shall reduce or eliminate such deductibles or self-insured retentions as respects to the City, its officers, officials, employees and volunteers; or the Consultant shall procure a bond guaranteeing payment of losses and related investigations, claim administration and defense expenses. D.Other Insurance Provisions The policies are to contain, or be endorsed to contain, the following provisions: 1.General Liability and Automobile Liability Coverages a.The City, it officers, officials, employees and volunteers are to be covered as additional insureds as respects; liability arising out of activities performed by or on behalf of the Consultant, products and completed operations of the Consultant, premises owned, occupied or used by the Consultant, or automobiles owned, hired or borrowed by the Consultant for the full period of time allowed by law, surviving the termination of this Agreement. The coverage shall contain no special limitations on the scope-of-protection afforded to the City, its officers, officials, employees or volunteers. b.The Consultant's insurance coverage shall be primary insurance as respects to the City, its officers, officials, employees and volunteers. Any insurance or self-insurance maintained by the City, its officers, officials, employees or volunteers shall be in excess of the Consultant's insurance and shall not contribute with it. c.Any failure to comply with reporting provisions of the policies shall not affect coverage provided to the City, its officers, officials, employees or volunteers. d.The Consultant's insurance shall apply separately to each insured against whom claim is made or suit is brought, except with respect to the limits of the insurer's liability. 2.Worker's Compensation and Employers Liability Coverage The insurer shall agree to waive all rights of subrogation against the City, its officers, officials, employees and volunteers for losses arising from Consultant's performance of the work, pursuant to this Agreement. 4 Page 75 of 858 E. 3.Professional Liability Coverage COU No. 2021235 If written on a claims-made basis, the retroactivity date shall be the effective date of this Agreement. The policy period shall extend one year from date of final approved invoice for this project. 4.All Coverages Each Insurance policy required by this clause shall be endorsed to state that coverage shall not be suspended, voided, canceled by either party, reduced in coverage or in limits except after thirty (30) days prior written notice by certified mail, return receipt requested, has been given to the City. Acceptability of Insurers Insurance is to be placed with admitted California insurers with an A.M. Best's rating of no less than A-for financial strength, AA for long-term credit rating and AMB-1 for short-term credit rating. F.Verification of Coverage Consultant shall furnish the City with Certificates of Insurance and with original Endorsements effecting coverage required by this Agreement. The Certificates and Endorsements for each insurance policy are to be signed by a person authorized by that insurer to bind coverage on its behalf. The Certificates and Endorsements are to be on forms provided or approved by the City. Where by statute, the City's Workers' Compensation -related forms cannot be used, equivalent forms approved by the Insurance Commissioner are to be substituted. All Certificates and Endorsements are to be received and approved by the City before Consultant begins the work of this Agreement. The City reserves the right to require complete, certified copies of all required insurance policies, at any time. If Consultant fails to provide the coverages required herein, the City shall have the right, but not the obligation, to purchase any or all of them. In that event, the cost of insurance becomes' part of the compensation due the contractor after notice to Consultant that City has paid the premium. G.Subcontractors Consultant shall include all subcontractors or sub-consultants as insured under its policies or shall furnish separate certificates and endorsements for each sub­ contractor or sub-consultant. All coverage for sub-contractors or sub-consultants shall be subject to all insurance requirements set forth in this Paragraph 6.1. 6.2 Indemnification. Notwithstanding the foregoing insurance requirements, and in addition thereto, Consultant agrees, for the full period of time allowed by law, surviving the termination of this Agreement, to indemnify the City for any claim, cost or liability that arises out of, or pertains to, or relates to any negligent act or omission or the willful misconduct of Consultant in the performance of services under this contract by Consultant, but this indemnity does not apply to liability for damages for death or bodily injury to persons, injury to property, or other loss, arising from the sole negligence, willful misconduct or defects in design by the City, or arising from the active negligence of the City. 5 Page 76 of 858 COU No. 2021235 "Indemnify," as used herein includes the expenses of defending against a claim and the payment of any settlement or judgment arising out of the claim. Defense costs include all costs associated with defending the claim, including, but not limited to, the fees of attorneys, investigators, consultants, experts and expert witnesses, and litigation expenses. References in this paragraph to City or Consultant, include their officers, employees, agents, and subcontractors. 7.0 CONTRACT PROVISIONS 7.1 Ownership of Work. All documents furnished to Consultant by City and all documents or reports and supportive data prepared by Consultant under this Agreement are owned and become the property of the City upon their creation and shall be given to City immediately upon demand and at the completion of Consultant's services at no additional cost to City. Deliverables are identified in the Scope-of-Work, Attachment "A". All documents produced by Consultant shall be furnished to City in digital format and hardcopy. Consultant shall produce the digital format, using software and media approved by City. 7.2 Governing Law. Consultant shall comply with the laws and regulations of the United States, the State of California, and all local governments having jurisdiction over this Agreement. The interpretation and enforcement of this Agreement shall be governed by California law and any action arising under or in connection with this Agreement must be filed in a Court of competent jurisdiction in Mendocino County. 7.3 Entire Agreement. This Agreement plus its Attachment(s) and executed Amendments set forth the entire understanding between the parties. 7.4 Severability. If any term of this Agreement is held invalid by a court of competent jurisdiction, the remainder of this Agreement shall remain in effect. 7.5 Modification. No modification of this Agreement is valid unless made with the agreement of both parties in writing. 7.6 Assignment. Consultant's services are considered unique and personal. Consultant shall not assign, transfer, or sub-contract its interest or obligation under all or any portion of this Agreement without City's prior written consent. 7.7 Waiver. No waiver of a breach of any covenant, term, or condition of this Agreement shall be a waiver of any other or subsequent breach of the same or any other covenant, term or condition or a waiver of the covenant, term or condition itself. 7.8 Termination. This Agreement may only be terminated by either party: 1) for breach of the Agreement; 2) because funds are no longer available to pay Consultant for services provided under this Agreement; or 3) City has abandoned and does not wish to complete the project for which Consultant was retained. A party shall notify the other party of any alleged breach of the Agreement and of the action required to cure the breach. If the breaching party fails to cure the breach within the time specified in the notice, the contract shall be terminated as of that time. If terminated for lack of funds or abandonment of the project, the contract shall terminate on the date notice of termination is given to Consultant. City shall pay the Consultant only for services 6 Page 77 of 858 BY: _________ _ 7 Jul 16, 2021 Kristine Lawler (Jul 16, 2021 11:18 PDT) Kristine Lawler Jul 16, 2021 Page 78 of 858 • I ATTACHMENT A CINQUINI & PASSARINO, lNC. A BOUNDARY A TOPOGRAPHIC A CONSTRUCTION A RAfLROAD A INFRASTRUCTURE A HYDROORAP!-UC May 3, 2021 Cindy Sauers, P.E. City of Ukiah 411 W. Clay Street Ukiah, CA 95482 V,U EMAJL: CSAl1ERJ@t::lTYbFUK1ttll,COM Re: Scope of Work and Fee Proposal to Pro�ide Land Surveying Services APN 180--070..19 -13S0 Hasting Road, Ukiah, California 95482 Dear Cindy: LAND SURVEYING Pll274 Cinquin1 & Passarino, Irie. is very pleased to present to you this· scope of work and fee proposal for the as-needed services during construction to provide quality assurance surveys during construction at the City of Ukiah Electri� Serv.ice·Center. SCOPE OF WORK C&P will provide up to 1'6 hours of quality assurance field surveys and associated office �alysis 9uring the construction of the City's Electric Service Center on an as-requested basis. The purpose of the surveys will be to confinn confonnance to the positions of fixed works as shown on Qle plan set entitled "City of Ukiah Electric Service ·Center,. prepared by Ron W. Franz, RCE, PLS, dated May 28, 2019. Items that may be checked include: •Horizontal location of contractor's construction staking.•Elevations of contractor's construction staking.•Slope of fixed works.•Other surveys as requested by City of Ukiah. -• A BOUNDARY SURVEY JS .VOT A PA.RT OF THIS SCOPE OF WORK. •CITY OF UKIAH SHAU PRO'(I/DE THE PROJECT ENGINEER'S CAD FILES WITH SUR,VEY CONTROL PRJOR REQUESTED FOR Ql!AUTY 11.SSURANCE SURVEYS. Deliverables: Sealed h.ardcopy of Qualit;y Assurance Survey Map. The Autocad •'dwg ·· used to creatt the hardcopy will also bg provided for your convenience. PROJECT FEE The hourly not to exceed fee for the quiil.ity assurance·surveys will be $5,600.00 PROJECT SCHEDULE The quality assurance survey field work will be completed Within 72 hours of request for survey. 1360 No. Dutton Avenue, Sult;e ISO Santa Rosa, CA 95401 Phone (707) 542•6298· Fax(707) 542-2106-----• Page 79 of 858 Page 80 of 858 A BOUNDARY ,I;. TOJ>OORAPHIC la RAILROAD "-INFRASTRUCTURE la CONSTRUCT!ON la HYDROGRAPHIC EXHIBITC MARCH J.2021 TOFE8RUARY28,2022 A-ND PROFESSIONAL LEGAL �£ARCH EXHIBITS LAND SURVE\1:NG CHI&, 2.CHAJNM£t-rORCHAINMAN SUPPLEMENTAL ITEMS (shifts starting 4 Pf.I or before 5 Page 81 of 858 Cinquini & Passarino - Hastings Field Surveys 2021-235 Final Audit Report 2021-07-16 Created:2021-07-13 By:Kristine Lawler (klawler@cityofukiah.com) Status:Signed Transaction ID:CBJCHBCAABAASxAfu7fSmTl25Xqhq53vn0lP80ZKuKaZ "Cinquini & Passarino - Hastings Field Surveys 2021-235" Histor y Document created by Kristine Lawler (klawler@cityofukiah.com) 2021-07-13 - 3:29:01 PM GMT- IP address: 12.12.163.2 Document emailed to Sage Sangiacomo (ssangiacomo@cityofukiah.com) for signature 2021-07-13 - 3:30:00 PM GMT Document e-signed by Sage Sangiacomo (ssangiacomo@cityofukiah.com) Signature Date: 2021-07-16 - 5:21:12 PM GMT - Time Source: server- IP address: 12.12.163.2 Document emailed to Kristine Lawler (lyricalwhims@gmail.com) for signature 2021-07-16 - 5:21:14 PM GMT Email viewed by Kristine Lawler (lyricalwhims@gmail.com) 2021-07-16 - 6:17:53 PM GMT- IP address: 66.249.84.91 Document e-signed by Kristine Lawler (lyricalwhims@gmail.com) Signature Date: 2021-07-16 - 6:18:04 PM GMT - Time Source: server- IP address: 12.12.163.2 Agreement completed. 2021-07-16 - 6:18:04 PM GMT Page 82 of 858 COU No. 2021-235-A1 Dec 2, 2021 Kristine Lawler (Dec 3, 2021 07:32 PST) Kristine Lawler Dec 3, 2021 Attachment 2 Page 83 of 858 Page 1 of 4 Agenda Item No:7.d. MEETING DATE:1/19/2022 AGENDA SUMMARY REPORT SUBJECT:Adoption of a Resolution of Application for a Revised Submittal to the Mendocino Local Agency Formation Commission (LAFCo) to Annex City-Owned Properties within Unincorporated Mendocino County; and Approval of the Community Development Director's Determination that the Proposed Annexation Qualifies for a CEQA Exemption. DEPARTMENT: Community Development PREPARED BY: Jesse Davis, Planning Manager, Craig Schlatter, Community Development Director PRESENTER: Jesse Davis, Planning Manager ATTACHMENTS: 1. Resolution 2. Exhibit A - Legal Description 3. Exhibit B-Plat Maps 4. City Owned Annexation - List of Parcels 5. LAFCo A-2021-01 Auditor Notice 6. City Maps 7. County Maps Summary:Council will consider adoption of a resolution of application for revised submittal to the Mendocino Local Agency Formation Commission (LAFCo) to annex City-owned properties within unincorporated Mendocino County. Council will also consider approving the Community Development Director’s determination that the proposed annexation qualifies for a CEQA Exemption. Background:On November 4, 2020, the City Council adopted Resolution No. 2020-61. By adopting this resolution, the City of Ukiah approved submittal to the Mendocino County LAFCo of an application that requested annexation of previously acquired properties utilized for public purposes. The Change of Organization proposal for the City of Ukiah Annexation was subsequently reviewed by LAFCo on March 23, 2021 (LAFCo File No. A-2021-01). As part of that review, clarifications were requested by LAFCo staff prior to a Certificate of Filing being issued pursuant to Government Code §56658(f). Over the past year, Staff has worked to address requested clarifications. Discussion: In order to proceed with this application for annexation, the City Council must adopt a revised resolution pursuant to Government Code §56654(a). The revised Resolution is included as Attachment 1, along with updated legal descriptions and plat map in Exhibits A and B to the Resolution. To realize tax savings, the City must submit and receive approval of an application for annexation from the Mendocino Local Agency Formation Commission (LAFCo). The City-owned properties proposed for annexation are mostly contiguous to existing City boundaries, and all are within the City’s Sphere of Influence. An updated list of parcels proposed for annexation is included as Attachment 2. Per the County of Mendocino Auditor-Controller, the estimated amount of annual property tax revenue generated by the associated proposed annexation is $62,966. A copy of the Auditor-Controller letter has been included as Attachment 3. What has Changed in the Revised Application Page 84 of 858 Page 2 of 4 While the revised application remains effectively the same, it is bolstered by additional property descriptions, maps, and information to clarify the associated public facility uses occurring on each parcel proposed for annexation. It also corrects issues regarding errant historical parcel numbers that were included in the original application. These errant parcel numbers engendered confusion, as they were associated with parcels not intended for annexation. The revised application will contain all required information needed by LAFCo to reevaluate the annexation request, including updated maps, metes and bounds, and other supporting documents that have been revised to address the requested clarifications. The existing development or uses for each property are appropriate, vested, or built-out, and are consistent with the City’s General Plan and Public Facilities zoning district. The primary motivation for the proposed annexation is subject to the City's jurisdiction to parcels that the City currently owns in fee and uses for government purposes, but that remain outside its jurisdiction. It is the intention of the City to continue public use of these properties as described in Ukiah City Codes §9170.1 and §9170.2. Within the City of Ukiah, the Public Facilities district classification is applied to properties used for or proposed to be used for public or quasi-public purposes or for specified public utility purposes. Upon review, it can be stated that the existing and associated uses for each area proposed for annexation conform to the uses allowed in the Public Facilities Zoning District. These uses are further detailed in Attachment 2. The current municipal purposes for Areas 4 and 5 (see depiction and descriptions in Exhibits A and B to Attachment 1) have been substantiated, and annexation of these parcels is considered critical to reduce associated tax liabilities, as well as support the ongoing viability of the City’s water and waste water treatment services. In 2018, the City acquired some parcels within Area 4 as part of a land-banking effort. At that time, boundary line adjustments were also facilitated to separate residential uses to ensure continued public facility usage. As described in the associated initial study for that acquisition, any future development of parcels within Area 4 would be subject to separate environmental review pursuant to the requirements of the California Environmental Quality Act (CEQA). The actual size, scope, and intensity of any future development project will be analyzed at the time of new project application submittal to determine any adverse impact on particular resources. It would be speculative to assume what size, type, and intensity of development might be proposed on the site in the future. That being said, any proposed use or improvement would be for the public benefit as required by the allowed uses in the Public Facilities zoning district and applicable Government Code sections, and subsequently reviewed under CEQA. Per Government Code § 56742(3)(f), a city may lease territory annexed for any of the purposes described within Government Code § 37380 - § 37396. Per Government Code § 37382, a city may lease city-owned land used for agricultural purposes upon which sewage or waste water is discharged. As described and depicted on the enclosed City of Ukiah Maps (Attachment 4), Area 4 is served by treated wastewater for viticulture production, which substantiates its current municipal purpose per Government Code § 37382. Additionally, critical stages of the City’s ‘Purple Pipe’ distribution are contained or adjacent to parcels within Area 4, distributing water north to municipal and agricultural users throughout the City. This distribution pipeline supports water for irrigating the Softball Field Complex, Oak Manor Park and School, Riverside Park and fields of grapes, alfalfa and pears. It also supports dust control efforts and cleaning at the Ukiah Solid Waste Systems Plant. Area 5, while zoned within the County’s Agricultural Zoning District as described in Attachment 5, was recently developed as a wastewater treatment pond. Per Government Code § 56472(3)(b), territory which is used by a city for the reclamation, disposal, and storage of treated wastewater may be annexed to the city pursuant to this Section without limitation as to the size of the territory. Ukiah Valley Area Plan Consistency Pursuant to Policy OC3.1b (Agricultural Land Conversion Criteria) in Section 9, Open Space and Conservation, Page 85 of 858 Page 3 of 4 of the Ukiah Valley Area Plan (UVAP), proposals to convert agricultural lands to non-agricultural classification will be considered only after satisfying the following requirements: 1. The project shall not result in a need for premature expansion of infrastructure in conflict with other Area Plan policies. 2. The project shall not have a significant adverse effect on agricultural uses in the area. 3. The project site is substantially unusable for agricultural purposes due to encroaching adjacent nonagricultural uses; 4. The proposal must achieve the long-range goals of the General Plan and Area Plan for the area as it existed prior to the proposal. The proposed project would be consistent with Policy OC3.1b of the UVAP for the following reasons: 1. No infrastructure is proposed or required for this project. The purpose of this annexation is to subject to the City's jurisdiction parcels that the City currently owns in fee and uses for government purposes, but that remain outside its jurisdiction. The City’s current request is focused on the need to annex City- owned properties to reduce its tax burden. It is the intention of the City to continue the existing uses of these properties under a Public Facility zoning designation. 2. Agricultural uses within Area 4 are to remain under lease and will continue to receive water from the City of Ukiah’s Recycled Water System. As described and depicted on the enclosed City of Ukiah Maps (Attachment 4), these agricultural operations are served by treated wastewater, which substantiates its current municipal purpose per Government Code § 37382. This public purpose is required to allow for annexation of these parcels. Any future development of parcels within Area 4 would be subject to separate environmental review pursuant to the requirements of CEQA. The actual size, scope and intensity of any future development project at that location will be analyzed at that time to determine any adverse impact on agricultural resources. Beyond the confines of Areas 4 and 5, parcels opposite the Russian River, as well as parcels south of Area 5, are each protected via existing Williamson Act contracts. None of the lands proposed for annexation are subject to the Williamson Act or agricultural preserve considerations; 3. While agricultural uses continue, Areas 4 and 5 are effectively bounded by industrial and transportation uses (i.e. U.S. 101) to the east, and the Russian River to the west. Within this bounded area, similar agricultural designations have recently been converted to non-agricultural designations. In addition, numerous industrial or public facility activities exist within this area, including solid-waste transfer, animal control services and waste-water treatment. Nearly all properties within this bounded area are owned and operated by municipal entities or quasi-public utilities, such as solid waste providers and transfer services. In 2018, the County of Mendocino facilitated a General Plan Amendment and Rezone (GP_2018-0002/R_2018-0004) to change 10.63± acres (APN 184-140-10) within this area from Agricultural to General Industrial (I-2). That request was intended to facilitate future industrial uses to centralize ongoing C&S Waste operations. The uses proposed for that property include wood/green waste chipping, concrete grinding and construction demolition and inert debris storage. As conveyed, Areas 4 and 5, while viable, are substantially unusable for agricultural activities, due to encroaching adjacent public facilities and industrial uses, which are necessary for the orderly development of the City of Ukiah; 4. The proposed project would be consistent with the objectives, goals, and policies of both the County General Plan and UVAP, especially with regard to goals that protect and increase water supply storage and capacity, as well as the reclamation and conservation of water. Again, while no development is presently identified for Area 4, annexation will allow for increased municipal control of land adjacent and containing existing and critical water-related infrastructure. Next Steps Page 86 of 858 Page 4 of 4 If approved by the City Council, it is a priority of Staff to finalize this annexation in 2022. Immediate next steps include: 1. January 20, 2022: Staff submits to the Mendocino Clerk Recorder's Office the Notice of Exemption for posting and recordation; 2. February 07, 2022: Staff submits to the Mendocino County LAFCo a revised application (LAFCo File No. A- 2021-01) for annexation of City-owned properties. Community Development Director CEQA Determination The City of Ukiah previously approved the aforementioned Annexation request on November 4, 2020. It can be determined that there is no potential that this revised Annexation request will result in either a direct physical change to the environment or a reasonably foreseeable indirect change to the environment, because it is a change in governmental organization that merely authorizes a boundary change; it will not result in any direct or indirect changes to the environment, as all existing development entitlements or uses on each property are appropriate, vested or built-out, and are consistent with the City’s general plan and zoning code. Under the categorical "change in organization" exemption (State CEQA Guidelines § 15320), the Annexation does not change the geographical area in which previously existing powers are exercised but is a boundary change to allow the continued provision of existing municipal services. Based on the foregoing, the project qualifies for the above CEQA exemption. Staff recommends that Council adopt the revised Resolution in Attachment 1 to authorize re-submittal of the City-owned properties annexation application to Mendocino LAFCo. Additionally, Staff recommends the Council approve the Community Development Director's determination that the proposed annexation qualifies for a CEQA Exemption. Recommended Action:Adopt the revised Resolution in Attachment 1 to authorize re-submittal to the Mendocino LAFCo; and approve the Community Development Director's determination that the proposed annexation qualifies for a CEQA Exemption. BUDGET AMENDMENT REQUIRED: N/A CURRENT BUDGET AMOUNT: N/A PROPOSED BUDGET AMOUNT: N/A FINANCING SOURCE: N/A PREVIOUS CONTRACT/PURCHASE ORDER NO.: N/A COORDINATED WITH: David Rapport, City Attorney; Craig Schlatter, Community Development Director; Darcy Vaughn, Assistant City Attorney Page 87 of 858 ATTACHMENT 1 RESOLUTION NO. 2022-__ RESOLUTION OF APPLICATION OF THE CITY COUNCIL OF THE CITY OF UKIAH INITIATING PROCEEDINGS FOR THE ANNEXATION OF LAND OWNED BY THE CITY OF UKIAH. WHEREAS: 1. The City of Ukiah desires to continue a proceeding for the adjustment of boundaries specified herein; and 2. Pursuant to Government Code Section 56654(a), the City must approve a resolution of application in order to initiate annexation proceedings. NOW, THEREFORE, BE IT RESOLVED AND ORDERED that: 1. This proposal is made, and it is requested that proceedings be taken, pursuant to the Cortese/Knox/Hertzberg Local Government Reorganization Act of 2000, commencing with section 56000 of the California Government Code, specifically Government Code § 56654(a). 2. This proposal is an annexation to the City of Ukiah. 3. Legal descriptions of the affected territories are set forth in Exhibit A, and maps of the affected territories are set forth in Exhibit B, attached hereto and by reference incorporated herein. 4. A territory to be annexed is uninhabited and consists of one parcel of 283.5 acres (Area No. 1, below) that is non-contiguous to the City. Additional parcels (Area Nos. 2, 3, 4, and 5) are contiguous to the City boundaries. 5. The reasons for the proposal are to annex and subject to the City's jurisdiction parcels that the City currently owns in fee and uses for government purposes, which are currently outside the City's jurisdiction and not subject to County land use regulation or control. The parcels as numbered on Exhibits A and B consist of: Area Number City Use of Property 1, 2 Conservation and natural resource conservation areas 3 Airports and aviation-related functions and uses 4 Existing public utility facilities and uses (Wastewater); Ongoing lease for agricultural purposes per GC 37382; 5 Public utility facilities and uses (Wastewater); Refuse disposal and refuse transfer stations 6. The proposal to annex Area No. 1 complies with Government Code Section 56742 in that the property is 1) located in Mendocino County where the City is situated; (2) owned by the City and (3) used for municipal purposes at the time these commission proceedings are initiated. 7. Area Nos. 1, 2, 3, 4, and 5 are within the City's Sphere of Influence. 8. The annexation of Area No. 1 should be subject to the terms and conditions as set forth in Government Code Section 56742. No special conditions are proposed for Area Nos. 2, 3, 4, and 5. 9. The City Council adopts the determination by the City's Director of Community Development that this annexation is a categorically exempt project under the California Environmental Quality Act. Upon adoption of this resolution, the Director of Community Development is Page 88 of 858 ATTACHMENT 1 authorized and directed to record a Notice of Exemption with the Mendocino County Clerk. 10. Once the territory is annexed by the City, it will no longer be subject to property taxes. Moreover, the use of the property for governmental purposes will not generate any other tax revenues, such as sales tax. As such, this reorganization will not result in any taxes that could be shared by the City and County pursuant to a tax sharing agreement. PASSED AND ADOPTED this ___ day of ____________, 2022, by the following roll call vote: AYES: NOES: ABSENT: ABSTAIN: Jim O. Brown, Mayor ATTEST: Kristine Lawler, City Clerk Page 89 of 858 City of Ukiah Annexation September 16, 2021 Page 1 of 7 N:\6UKI010100\Survey\LEGALS\LD-Ukiah Annexation.docx EXHIBIT “A” LEGAL DESCRIPTION CITY OF UKIAH ANNEXATION All that real property situate in the unincorporated area of Mendocino County, State of California, described as follows: AREA No. 1: Being a portion of Lot 99 of the Healey’s Survey and Map of Yokayo Rancho and being the lands of the City of Ukiah described in that certain deed recorded in Book 389 of Official Records at Page 557, Mendocino County Records (M.C.R), more particularly described as follows: COMMENCING at a National Geodetic Survey station, being a 3-1/4” Aluminum Disc marked CA DOT / 101 MEN 25.13; thence North 78°01'20" East 13,294.14 feet to a point on the east line of said Lot 99 and the POINT OF BEGINNING; said point also being North 00°03'03" East 397.32 feet from the southwest corner of Section 11, Township 15 North, Range 12 West, M.D.M, said point also being the southeast corner of last said lands of the City of Ukiah; thence along the boundary of last said lands of City of Ukiah the following eighteen (18) courses: 1. (1) North 89°56'57" West 4,150.78 feet; 2. (2) North 25°56'57" West 114.79 feet; 3. (3) North 45°04'57" West 186.78 feet; 4. (4) North 41°08'57" West 130.49 feet; 5. (5) North 59°03'57" West 82.39 feet; 6. (6) North 65°11'57" West 83.69 feet; 7. (7) North 58°49'57" West 154.08 feet; 8. (8) North 77°44'57" West 73.19 feet; 9. (9) North 65°18'57" West 178.58 feet; 10. (10) North 70°03'57" West 220.68 feet; 11. (11) North 76°56'57" West 223.98 feet; 12. (12) North 73°49'57" West 243.67 feet; 13. (13) North 67°31'57" West 65.09 feet; 14. (14) North 65°10'57" West 157.18 feet; 15. (15) North 83°11'57" West 315.76 feet; 16. (16) North 02°46'33" West 733.99 feet; 17. (17) North 77°11'49" East 6,302.38 feet; 18. (18) South 00°03'03" West 3,036.00 feet to the POINT OF BEGINNING. Area 1 containing 301.2 acres, more or less. ATTACHMENT 2 Page 90 of 858 City of Ukiah Annexation September 16, 2021 Page 2 of 7 N:\6UKI010100\Survey\LEGALS\LD-Ukiah Annexation.docx AREA No. 2: Being a portion of the Southeast ¼ of Northeast ¼ Section 24, Township 15 North, Range 13 West, Mount Diablo Meridian, and being the lands of the City of Ukiah as described as Parcel One and Parcel Two in that certain Grant Deed recorded in Document No. 2013-09089, M.C.R, more particularly described as follows: COMMENCING at a National Geodetic Survey station, being a 3-1/4” Aluminum Disc marked CA DOT / 101 MEN 25.13; thence South 68°13'23" West 10,566.35 feet to the northeast corner of the said Southeast ¼ of Northeast ¼ of Section 24 and the POINT OF BEGINNING, said point being South 01°40'53" East 1,380.15 feet from the northeast corner of said Section 24; said point also being the northeast corner of last said Parcel One; thence from said point of beginning along the boundary of last said lands of City of Ukiah and the boundary of the said Southeast ¼ of Northeast ¼ of Section 24 the following four (4) courses: 19. (1) South 01°40'53" East 1,281.14 feet; 20. (2) North 89°35'05" West 1,293.15 feet; 21. (3) North 01°02'15" West 1,279.04 feet; 22. (4) South 89°39'30" East 1,278.72 feet to the POINT OF BEGINNING. Containing 37.8 acres, more or less. EXCEPTING THEREFROM, areas # 2 and # 3 described as being excepting therefrom said Parcel One of said Grant Deed recorded in Document No. 2013-09089, M.C.R, more particularly described as follows: COMMENCING at the northeast corner of the said Southeast ¼ of Northeast ¼ of Section 2, thence South 65°44'36" West 573.61 feet to the northeast corner of said area # 2 and the POINT OF BEGINNING; thence along easterly boundary of said area # 2 the following two (2) courses: 23. (1) South 00°00'00" East 114.99 feet 24. (2) South 30°00'00" East 79.99 feet more or less to the centerline of Gibson Creek; thence along the easterly and southerly boundary of said areas # 2 and 3 and the centerline of Gibson Creek the following seven (7) courses: 25. (1) South 34°29'20" West 67.07 feet; 26. (2) South 21°35'09" West 127.70 feet; 27. (3) South 57°09'56" West 37.23 feet; 28. (4) South 35°53'29" West 57.70 feet; 29. (5) South 74°27'11" West 67.61 feet; Page 91 of 858 City of Ukiah Annexation September 16, 2021 Page 3 of 7 N:\6UKI010100\Survey\LEGALS\LD-Ukiah Annexation.docx 30. (6) South 82°23'58" West 69.99 feet; 31. (7) North 89°50'08" West 72.50 feet; thence leaving said centerline of Gibson Creek and continuing along the boundary of said areas # 2 and 3 the following six (6) courses: 32. (1) South 00°00'00" East 79.99 feet; 33. (2) North 90°00'00" West 219.98 feet; 34. (3) North 00°00'00" West 259.97 feet;73 35. (4) North 90°00'00" East 219.98 feet; 36. (5) North 26°43'00" East 304.97 feet; 37. (6) North 90°00'00" East 179.98 feet to the POINT OF BEGINNING. Exception area containing 4.0 acres, more or less. Area 2 resultant area containing 33.8 acres, more or less AREA No. 3: Being a portion of Lot 73 of the Healey’s Survey and Map of Yokayo Rancho, and being the lands of the City of Ukiah described in that certain Grant Deed recorded in Document No. 1999-05298, M.C.R, more particularly described as follows: COMMENCING at a National Geodetic Survey station, being a 2-1/2” Aluminum Disc marked CA DOT / NPGN D CA 1-CG, thence North 17°57'43" West 10,348.76 feet to the POINT OF BEGINNING, said point also being the southeast corner of last said lands of the City of Ukiah; thence from said point of beginning along the boundary of last said lands of City of Ukiah the following six (6) courses: 38. (1) South 78°58'59" West 465.17 feet; 39. (2) North 08°18'52" West 157.78 feet; 40. (3) South 83°51'42" West 249.97 feet to a point on the easterly right-of-way line of South State Street; said point also being the beginning of a non-tangent curve, concave easterly, having a radius of 2,951.91 feet; and to which beginning a radial line bears South 83°32'58" West; 41. (4) northerly along last said easterly right-of-line and said curve, through a central angle of 00°37'28", an arc distance of 32.17 feet; 42. (5) leaving said easterly right-of-way line North 83°51'42" East 679.53 feet; 43. (6) South 21°00'55" East 155.49 feet to the POINT OF BEGINNING. Area 3 containing 1.9 acres, more or less. Page 92 of 858 City of Ukiah Annexation September 16, 2021 Page 4 of 7 N:\6UKI010100\Survey\LEGALS\LD-Ukiah Annexation.docx AREA No. 4: Being a portion of Lots 70 and 71 of the Healey’s Survey and Map of Yokayo Rancho, and being portions of the lands of City of Ukiah as said lands are described in that certain “Individual Grant Deed” recorded in Book 1500, at Page 242, M.C.R, and in that certain “Grand Deed in Lieu of Condemnation” recorded in Document No. 2007-11428, M.C.R, and in that certain “Grant Deed” record in Document No. 2018-06759, M.C.R; more particularly described as follows: COMMENCING at a National Geodetic Survey station, being a 2-1/2” Aluminum Disc marked CA DOT / NGPN D CA 1-CG, thence North 10°16'16" West 7,481.51 feet to the POINT OF BEGINNING; said point being on the easterly right-of-way of Northwestern Pacific Railroad; said point also being a point on the boundary of said lands of City of Ukiah described in said “Grant Deed” recorded in Document No 2018- 06759; thence along the boundary of last said lands of City of Ukiah the follow two (2) courses: 44. (1) North 72°06'47" East 157.38 feet; 45. (2) North 19°47'15" West 117.34 feet to the southwesterly corner of the lands of Norgard Properties, Inc. as said lands are described in that certain “Grant Deed” recorded in Document No. 2018-06761, M.C.R; 46. thence along the southerly line of said lands of Norgard Properties and its easterly prolongation North 83°11'52" East 267.38 feet to a point on the boundary of said lands of Ukiah; thence along said boundary of City of Ukiah the following seven (7) courses: 47. (1) North 18°01'48" West 170.00 feet to a point on the centerline of Norgard Lane; 48. (2) along last said centerline and its easterly prolongation North 71°58'12" East 282.94 feet; 49. (3) leaving last said centerline and its easterly prolongation South 18°01'48" East 6.00 feet; 50. (4) South 65°16'14" East 79.76 feet; 51. (5) North 78°28'12" East 87.00 feet; 52. (6) North 18°01'48" West 70.00 feet; 53. (7) North 71°58'12" East 91.91 feet to a point on center of the channel of Russian River; thence along continuing along said lands of City of Ukiah and said center of channel the following eleven (11) courses: 54. (1) South 26°25'18" East 285.98 feet; 55. (2) South 28°27'48" East 263.77 feet; 56. (3) South 46°31'18" East 323.86 feet; 57. (4) South 60°17'48" East 344.96 feet; 58. (5) South 65°01'48" East 239.72 feet; 59. (6) South 73°52'48" East 195.88 feet; Page 93 of 858 City of Ukiah Annexation September 16, 2021 Page 5 of 7 N:\6UKI010100\Survey\LEGALS\LD-Ukiah Annexation.docx 60. (7) South 68°57'48" East 378.81 feet; 61. (8) South 88°36'21" East 373.95 feet; 62. (9) South 56°40'31" East 391.22 feet; 63. (10) South 43°01'44" East 190.38 feet; 64. (11) South 27°48'04" East 242.52 feet; thence leaving said center of channel and continuing along said boundary of said lands of City of Ukiah the following four (4) courses: 65. (1) South 84°00'16" West 1,904.56 feet; 66. (2) North 05°59'44" West 377.15 feet; 67. (3) South 84°00'17" West 938.48 feet to a point on the easterly right-of-way of Northwestern Pacific Railroad; 68. (4) along last said easterly right-of-way North 20°48'24" West 1,240.88 feet to the POINT OF BEGINNING. Area 4 containing 67.2 acres, more or less. AREA No. 5: Being a portion of Lots 69 and 70 of the Healey’s Survey and Map of Yokayo Rancho, more particularly described as follows: COMMENCING at aforementioned Point “B”; said point being a point on the easterly right-of-way of Northwestern Pacific Railroad; thence along last said easterly right-of-way South 20°48'24" East 1,156.24 feet to the POINT OF BEGINNING; 69. thence form said point being continuing along last said easterly right-of-way South 20°48'24" East 55.75 feet to the northwesterly corner of the lands of City of Ukiah as said lands are described as Parcel One of that certain “Grant Deed” recorded in Document No. 2011-11526, M.C.R, 70. thence along the northerly boundary of last said lands of City of Ukiah North 85°48'06" East 2,638.83 feet to a point on the center of channel of Russian River; thence continuing along the boundary of last said lands and said center of channel the following nine (9) courses: 71. (1) South 04°42'54" West 87.41 feet; 72. (2) South 41°18'20" West 185.74 feet; 73. (3) South 54°13'13" West 231.23 feet; 74. (4) South 63°18'43" West 347.79 feet; 75. (5) South 80°12'28" West 339.00 feet; Page 94 of 858 City of Ukiah Annexation September 16, 2021 Page 6 of 7 N:\6UKI010100\Survey\LEGALS\LD-Ukiah Annexation.docx 76. (6) South 55°36'44" West 90.18 feet; 77. (7) South 37°39'59" West 91.84 feet; 78. (8) South 21°25'25" West 170.28 feet; 79. (9) South 11°26'08" East 259.26 feet; thence leaving said center of channel and continuing along the boundary of last said lands of City of Ukiah the following two (2) courses: 80. (1) South 81°10'50" West 1,126.78 feet to a point on the easterly right-of-way of Northwestern Pacific Railroad; 81. (2) along last said easterly right-of-way North 20°48'24" West 799.68 feet to the intersection with the southerly boundary and its easterly prolongation of the lands of the City of Ukiah as said lands are described in that certain “Grant Deed” recorded in Document 2017-03138; M.C.R; 82. thence along last said southerly boundary and its easterly prolongation South 81°47'40" West 547.08 feet to the southwest corner of last said lands of City of Ukiah; said corner being a point on the easterly right-of-way of Tayler Drive; 83. thence along last said easterly right-of-way North 07°20'50" West 423.99 feet to the northwest corner of last said lands of City if Ukiah; 84. thence along the northerly boundary of last said lands and its easterly prolongation North 83°07'21" East 448.40 feet to the POINT OF BEGINNING. Area 5 containing 47.5 acres, more or less. Total Combined Annexation Areas containing 451.6 acres, more or less The basis of bearings for this description is based on NAD 83, California Coordinate System (CCS83), Zone 2 (2010.00 epoch date) using the two found National Geodetic Survey monuments designated “101 MEN 25.13 and “HPGN D CA 01 CG”. All distances cited herein are grid values which are the basis for the areas shown hereon. To obtain ground values divide the distances by 0.999890795 to obtain ground distances. The purpose of this description is for annexation purposes and to comply with the State Board of Equalization's "Written Legal (geodetic) Description Requirements". This description is to be used to establish geodetic position only and is not intended to establish property ownership. Page 95 of 858 City of Ukiah Annexation September 16, 2021 Page 7 of 7 N:\6UKI010100\Survey\LEGALS\LD-Ukiah Annexation.docx _________________________________ 09/16/2021 Lester E. Carter Jr., CA. LS No 6148 Date Page 96 of 858 R. 1 3 W . R. 1 2 W . U S H W Y 1 0 1 US H W Y 1 0 1 S . S T A T E S T R E E T R I V E R T.16N. T.15N. T.15N. T.14N. 25 30 T.16N. T.15N. T.15N. T.14N. 25 R. 1 3 W . R. 1 2 W . 36 30 24 31 1 6 12 7 8 13 12 1 11 12 12 14 13 23 24 25 36 1 12 CITY OF UKIAH R U S S I A N N. S T A T E S T R E E T R I V E R R U S S I A N VICH Y SPRI N G S RD. E. PERKIN S S T . TA M A L G E R D . US H W Y 1 0 1 19 18 5 32 9 EXHIBIT "B" CITY OF UKIAH ANNEXATION PORTIONS OF LOTS 70, 71, 73, AND 99 OF THE YOKAYA RANCHO, AND PORTION OF SECTION 24 TOWNSHIP 15 NORTH, RANGE 13 WEST, MOUNT DIABLO MERIDIAN (M.D.M.) MENDOCINO COUNTY, CALIFORNIA SEPTEMBER 16, 2021 SHEET 1 OF 3 LEGEND: ““” Attachment 3 Page 97 of 858 11 14 POB - AREA #1 12 3 4 5 6 7 8 9 10 11 12 13 14 15 1 6 17 18 POB - AREA #2 19 20 21 22 23 2 4 25 26 2728 293031 32 33 34 35 36 37 18 19 13 24 POB - AREA #3 38 3 9 40 4 1 42 4 3 EXHIBIT "B" CITY OF UKIAH ANNEXATION PORTIONS OF LOTS 70, 71, 73, AND 99 OF THE YOKAYA RANCHO, AND PORTION OF SECTION 24 TOWNSHIP 15 NORTH, RANGE 13 WEST, MOUNT DIABLO MERIDIAN (M.D.M.) MENDOCINO COUNTY, CALIFORNIA SEPTEMBER 16, 2021 SHEET 2 OF 3 LEGEND: SEGMENT TABLE SEGMENT # 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 LENGTH 4150.78 114.79 186.78 130.49 82.39 83.69 154.08 73.19 178.58 220.68 223.98 243.67 65.09 157.18 315.76 733.99 6302.38 3036.00 1281.14 1293.15 1279.04 1278.72 114.99 79.99 67.07 127.70 37.23 57.70 67.61 69.99 72.50 79.99 219.98 259.97 219.98 304.97 179.98 465.17 157.78 249.97 32.17 679.53 155.49 DIRECTION / DELTA N89° 56' 57"W N25° 56' 57"W N45° 04' 57"W N41° 08' 57"W N59° 03' 57"W N65° 11' 57"W N58° 49' 57"W N77° 44' 57"W N65° 18' 57"W N70° 03' 57"W N76° 56' 57"W N73° 49' 57"W N67° 31' 57"W N65° 10' 57"W N83° 11' 57"W N2° 46' 33"W N77° 11' 49"E S0° 03' 03"W S1° 40' 53"E N89° 35' 05"W N1° 02' 15"W S89° 39' 30"E S0° 00' 00"E S30° 00' 00"E S34° 29' 20"W S21° 35' 09"W S57° 09' 56"W S35° 53' 29"W S74° 27' 11"W S82° 23' 58"W N89° 50' 08"W S0° 00' 00"E N90° 00' 00"W N0° 00' 00"E N90° 00' 00"E N26° 43' 00"E N90° 00' 00"E S78° 58' 59"W N8° 18' 52"W S83° 51' 42"W 0°37'28" N83° 51' 42"E S21° 00' 55"E RADIUS 2951.91' DETAIL "A" SCALE=1"=400' DETAIL "B" SCALE=1"=200' DETAIL "C" SCALE=1"=100 Page 98 of 858 POINT 'A' POB - AREA #4 POB - AREA #5 POINT 'B' 44 4 5 46 4 7 48 49 50 51 5 2 53 5 4 5 5 5 6 57 58 59 60 61 62 6 3 6 4 65 6 6 67 6 8 6 9 70 71 72 73 74 75 76 77 78 7 9 80 8 1 82 8 3 84 EXHIBIT "B" CITY OF UKIAH ANNEXATION PORTIONS OF LOTS 70, 71, 73, AND 99 OF THE YOKAYA RANCHO, AND PORTION OF SECTION 24 TOWNSHIP 15 NORTH, RANGE 13 WEST, MOUNT DIABLO MERIDIAN (M.D.M.) MENDOCINO COUNTY, CALIFORNIA SEPTEMBER 16, 2021 SHEET 3 OF 3 LEGEND: DETAIL "D" SCALE=1"=200' 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80 81 82 83 84 157.38 117.34 267.38 170.00 282.94 6.00 79.76 87.00 70.00 91.91 285.98 263.77 323.86 344.96 239.72 195.88 378.81 373.95 391.22 190.38 242.52 1904.56 377.15 938.48 1240.88 55.75 2638.83 87.41 185.74 231.23 347.79 339.00 90.18 91.84 170.28 259.26 1126.78 799.68 547.08 423.99 448.40 N72° 06' 47"E N19° 47' 15"W N83° 11' 52"E N18° 01' 48"W N71° 58' 12"E S18° 01' 48"E S65° 16' 14"E N78° 28' 12"E N18° 01' 48"W N71° 58' 12"E S26° 25' 18"E S28° 27' 48"E S46° 31' 18"E S60° 17' 48"E S65° 01' 48"E S73° 52' 48"E S68° 57' 48"E S88° 36' 21"E S56° 40' 31"E S43° 01' 44"E S27° 48' 04"E S84° 00' 16"W N5° 59' 44"W S84° 00' 17"W N20° 48' 24"W S20° 48' 24"E N85° 48' 06"E S4° 42' 54"W S41° 18' 20"W S54° 13' 13"W S63° 18' 43"W S80° 12' 28"W S55° 36' 44"W S37° 39' 59"W S21° 25' 25"W S11° 26' 08"E S81° 10' 50"W N20° 48' 24"W S81° 47' 40"W N7° 20' 50"W N83° 07' 21"E SEGMENT TABLE SEGMENT #LENGTH DIRECTION / DELTA RADIUS SEGMENT TABLE SEGMENT #LENGTH DIRECTION / DELTA RADIUS Page 99 of 858 APN Owner SITUS Acreage Info ‐ County PBS County Zoning  County General Plan  Area  Number Current Status Public Facilities Use Water  Service Sewer  Provider Storm  Drain 178‐130‐01 City of Ukiah 3100 Vichy Springs Road ±300 APN: 178‐130‐01 Acres: 301.2 Property Address: 3100 VICHY SPRINGS RD Owner: CITY OF UKIAH Public Facilities (PF) Public Services 1 Previous Landfill Conservation and natural resource conservation areas.RRFC N/A N/A 156‐240‐02 City of Ukiah N/A ±1 APN: 156‐240‐02 Acres: 1.00± Property Address: N/A Owner: CITY OF UKIAH Upland Residential  (UR:40) Remote Residential  (RMR40)2 Open‐Space Conservation and natural resource conservation areas N/A N/A N/A 156‐240‐13 City of Ukiah 1970 W Standley Ave ±33.8 APN: 156‐240‐13 Acres: 33.8 Property Address: 1970 WE STANDLEY AVE Owner: CITY OF UKIAH Upland Residential  (UR:40) Remote Residential  (RMR40)2 Open‐Space Conservation and natural resource conservation areas N/A N/A N/A 003‐330‐68 City of Ukiah 1601 S State Street ±1.9 APN: 003‐330‐68  Acres: 1.9± Property Address: 1601 SO STATE ST Owner: CITY OF UKIAH Limited Commercial  (C1)Commercial 3 Airport Airports and aviation‐related functions and uses Willow  Water N/A City of  Ukiah 003‐330‐69 Aviation Ukiah  (Leased)1601 S State Street (Lease) APN: 003‐330‐70 Acres: 0.00± Property Address: 1601 SO STATE ST City: UK Owner: AVIATION UKIAH Limited Commercial  (C1)Commercial 3 Airport Airports and aviation‐related functions and uses Willow  Water N/A City of  Ukiah 003‐330‐70 Aviation Ukiah  (Leased)1601 S State Street (Lease) APN: 003‐330‐69 Acres: 0.00± Property Address: 1601 SO STATE ST City: UK Owner: AVIATION UKIAH Limited Commercial  (C1)Commercial 3 Airport Airports and aviation‐related functions and uses Willow  Water N/A City of  Ukiah 184‐080‐36 City of Ukiah 341 Norgard Lane ±2.8 APN: 184‐080‐36 Acres: 2.80± Property Address: 341 NORGARD LN Owner: CITY OF UKIAH Agriculture (AG:40) Agricultural 4 Recyled Water  Distribution; Recyled Water Distribution; Ongoing  lease for agricultural  purposes per GC 37382 RRFD N/A N/A 184‐080‐37 City of Ukiah 341 Norgard Lane ±4.5 APN: 184‐080‐37 Acres: 4.50± Property Address: 341 NORGARD LN Owner: CITY OF UKIAH Agriculture (AG:40) Agricultural 4 Recyled Water  Distribution;RRFD UVSD N/A 184‐090‐01 City of Ukiah N/A ±4 APN: 184‐090‐01 Acres: 4.00± Property Address: Owner: CITY OF UKIAH Agriculture (AG:40) Agricultural 4 Recyled Water  Distribution;RRFD UVSD N/A 184‐090‐07 City of Ukiah N/A ±13.92 APN: 184‐090‐07 Acres: 13.92± Property Address: N/A Owner: CITY OF UKIAH Agriculture (AG:40) Agricultural 4 Recyled Water  Distribution;RRFD N/A N/A 184‐100‐04 City of Ukiah N/A ±10.52 APN: 184‐100‐04 Acres: 10.52± Property Address:  N/A Owner: CITY OF UKIAH Agriculture (AG:40) Agricultural 4 Recyled Water  Distribution; Recyled Water Distribution RRFD N/A N/A 184‐080‐40 City of Ukiah 381 Norgard Lane ±0.12 APN: 184‐080‐40 Acres: 0.12± Property Address: 381 NORGARD LN Owner: CITY OF UKIAH Agriculture (AG:40) Agricultural 4 Recyled Water  Distribution; Recyled Water Distribution RRFD N/A N/A 184‐100‐05 City of Ukiah 300 Plant Road ±15.45 APN: 184‐100‐05 Acres: 15.45± Property Address: 300 PLANT RD Owner: CITY OF UKIAH Agriculture (AG:40) Agricultural 4 North Waste Water Pond Public utility facilities and uses (Wastewater) RRFD N/A N/A Recyled Water Distribution; Ongoing  lease for agricultural  purposes per GC 37382 Recyled Water Distribution; Ongoing  lease for agricultural  purposes per GC 37382 Recyled Water Distribution; Ongoing  lease for agricultural  purposes per GC 37382 Attachment 4 Page 100 of 858 184‐090‐06 City of Ukiah 217 Norgard Lane ±14.05 APN: 184‐090‐06 Acres: 14.05± Property Address: 217 NORGARD LN Owner: CITY OF UKIAH Agriculture (AG:40) Agricultural 4 Recyled Water  Distribution; Recyled Water Distribution; Ongoing lease for agricultural purposes per GC 37382 RRFD UVSD N/A 184‐150‐01 City of Ukiah 3495 Taylor Drive ±43 APN: 184‐150‐01 Acres: 43.00± Property Address: 3495 TAYLOR DR Owner: CITY OF UKIAH Agriculture (AG:40) Agricultural 5 South Waste Water Pond  Public utility facilities and uses (Wastewater)RRFD N/A N/A 184‐140‐13 City of Ukiah 3151 Taylor Drive ±4.05 APN: 184‐140‐13 Acres: 4.05± Property Address: 3151 TAYLOR DR Owner: CITY OF UKIAH General Industrial (I2) Industrial 5 Existing Solid Waste  Transfer Station Refuse disposal/recycling areas, and refuse transfer stations and similar  uses. Willow  Water N/A N/A Page 101 of 858   CHAMISE CUBBISON ACTING AUDITOR-CONTROLLER COUNTY OF MENDOCINO 501 LOW GAP ROAD, RM. 1080 UKIAH, CALIFORNIA 95482 PHONE (707) 234-6860 FAX (707) 467-2503 www.mendocinocounty.org Date: September 22, 2021 To: Affected Agencies, City of Ukiah Mendocino County Board of Supervisors From: Chamise Cubbison, Acting Auditor-Controller Re: LAFCo File A-2021-01 City of Ukiah Annexation of City of Ukiah owned properties Per Revenue and Taxation Code 99(b)(3) the Auditor shall notify the governing body of each local agency whose service area or service responsibility will be altered by the jurisdictional change of the amount of, and allocation factors with respect to, property tax revenue estimated pursuant to paragraph (2) that is subject to negotiated exchange. The estimated amount of property tax revenue generated in the Tax Rate Areas associated with the identified parcels, based on the 2020-21 assessed values is $62,966. The estimated revenue impact affects all agencies in the related Tax Rate Areas as the likelihood that the parcels will become exempt or zero tax is high. The estimated remaining revenue would come from unsecured assessed property and the value of that estimated tax revenue is $11,356. Please see page 2 for breakdown of impact to affected entities. There may be possible additional revenue due to possessory interests, roughly estimated to be $7,343. The possessory related revenue is not included in the above remaining revenue estimate as that is dependent on long term leases. It should be noted that this is an estimate and that there may be additional factors to consider should tax sharing negotiation take place. Per Revenue & Taxation Code 99(b)(4) Upon receipt of the estimates pursuant to paragraph (3), the local agencies shall commence negotiations to determine the amount of property tax revenues to be exchanged between and among the local agencies. Except as otherwise provided, this negotiation period shall not exceed 60 days. If a local agency involved in these negotiations notifies the other local agencies, the county auditor, and the local agency formation commission in writing of its desire to extend the negotiating period, the negotiating period shall be 90 days. Attachment 5 Page 102 of 858 Page 2 September 22, 2021 LAFCo File A-2021-01 Auditor Notice of Estimated Revenue If you have any questions regarding this process, please refer to Revenue & Taxation Code, Section 99 for procedures. Cc: Mendocino County Counsel Mendocino LAFCo Auditor's Estimate of Property Tax Revenue LAFCo File A-2021-01 Annexation of City of Ukiah Tax Authority Total Estimated Tax Revenue Estimated Unsecured Portion Estimated Difference Overall Factor All TRAs County 19,460 3,505 (18,514) 0.30904865 Russian River Cemetery 507 91 (415) 0.008044144 Ukiah Valley Fire 1,361 250 (1,111) 0.021614578 Mendocino County FC & WC Improvement District 82 15 (67) 0.001297519 Mendocino County RRFC & WCID 96 18 (78) 0.001525737 Ukiah Valley Sanitation 238 53 (185) 0.003783452 ERAF-Education Revenue Augmentation Fund 10,686 1,925 (8,761) 0.169704588 Mendocino County Office of Education 2,810 506 (2,304) 0.044631811 Mendocino Community College District 4,379 789 (3,590) 0.069542597 Ukiah Unified School District 23,348 4,205 (19,143) 0.370806924 Total Tax Revenue from PINs 62,966 11,356 (54,169) 1.00 Page 103 of 858 ´ 0 10,0005,000 FeetDocument Path: S:\Public Works\Stricklin, Andrew\GIS Maps\GIS\Projects\Planning\January 2020 Proposed SOI.mxd This map is a guide. Every reasonableeffort has been made to ensure the accuracyof the map and data provided. Parcel linesare not intended to represent surveyed data.Date Saved: 11/12/2020 1:58:56 PM Public Works Ukiah City Limits UVAP/Current SOI Jan 2020 Proposed SOI Areas of Interest Map of January 2020 City Council-Proposed Sphere of InfluenceAttachment 7 Page 104 of 858 Page 105 of 858 Page 106 of 858 Area #1 Attachment 6 Page 107 of 858 ROGINAWATER COMPANY MILLVIEW COUNTYWATER DISTRICT CASE: OWNER: APN: APLCT: AGENT: ADDRESS: µCDP 2021-0012 State of California (RoW) N/A Caltrans District 1 Steven Blair N. Highway 1, Fort Bragg 1:12,000 0 1,000500 Feet 0 0.150.075 Miles ME N D O C I N O C O U N T Y P L A N N I N G D E P A R T M E N T - 4 / 1 / 2 0 2 1 THIS MAP AND DATA ARE PROVIDED WITHOUT WARRANTY OF ANY KIND.DO NOT USE THIS MAP TO DETERMINE LEGAL PROPERTY BOUNDARIES Map produced by the Mendocino County Planning & Building Svcs. Dept., April, 2021Coordinate System: NAD 83, Calif. State Plane Zone IIProjection: Lambert Conformal ConicParcel Data: Mendocino County Information Services, October, 2018Aerial Imagery: US Dept. of Agriculture/ArcGIS Online mosaicTopographic Data: USGS 7.5 minute quad series Mount Diablo Base & MeridianParcel numbers are for tax purposes only and do not represent legal or salable parcels.All spatial data is approximate. This map is not a substitute for a proper land survey. ,,,,,,,,,,,,,,,,,,,,Russian River Flood District County Water Districts Ukiah Valley Sanitation Dist. DISTRICTS Page 108 of 858 178-210-02GILBERT ASHOFFRL160 82.64 A± (81.96 A±) 17 8 - 2 0 0 - 0 6 PA T R I C K A R N E R I C H RL 1 6 0 1 2 . 0 2 A ± ( 1 0 . 8 4 A ± ) 178-110-11PATRICIA MCMILLENRL160 57.46 A± (58.12 A±) 178- 1 2 0 - 0 2 DEVR A W O L F RL16 0 1 8 A ± ( 2 4 . 4 5 A ± ) 18 9 - 0 1 0 - 1 4 PA T R I C K H A R M O N RL 1 6 0 1 3 9 . 4 2 A ± ( 1 3 9 . 3 4 A ± ) 17 8 - 2 0 0 - 0 2 LE L A N D K R A E M E R RL 1 6 0 5 5 . 4 6 A ± ( 5 9 . 1 2 A ± ) 18 9 - 0 1 0 - 1 0 KU R T S M A L L C O M B RL 1 6 0 4 7 . 2 4 A ± ( 4 5 . 9 8 A ± ) 178-2 0 0 - 0 7 PATRI C I A G R I F F I N RL160 2 . 1 5 A ± ( 2 . 3 5 A ± ) 17 8 - 2 5 0 - 5 0 MI C H E L L E M I L L E R SR 6 K 0 A ± ( 0 . 8 9 A ± ) 17 8 - 2 0 0 - 0 1 FA M I L Y S H A W R1 6 K 1 2 0 . 1 7 A ± ( 1 2 5 . 2 8 A ± ) 1 7 8 - 2 5 0 - 6 5 T O D D T R O E D E L S R 6 K 0 A ± ( 0 . 7 6 A ± ) 178-200-03KAREN FECHKORL160 1.73 A± (5.62 A±) 178- 2 5 0 - 7 3 SPRI N G S V I C H Y SR6K 0 A ± ( 0 . 5 6 A ± ) 18 9 - 0 1 0 - 0 7 GI L B E R T A S H O F F RL 1 6 0 3 1 0 . 8 9 A ± ( 3 0 4 . 6 1 A ± ) 178- 2 5 0 - 7 9 SPRI N G S V I C H Y SR12 K 0 A ± ( 7 . 3 8 A ± ) 17 8 - 1 8 0 - 0 7 FA M I L Y S H A W RL 1 6 0 1 9 . 3 6 A ± ( 1 8 . 5 A ± ) 178-210-01OF CITYRL160 96.82 A± (97.32 A±) 178-220-06LARRY LYNCHRL160 85 A± (91.94 A±) 189-040-01GILBERT ASHOFFRL160 287.32 A± (286.23 A±) 17 8 - 2 0 0 - 0 5 STA T E S U N I T E D RL1 6 0 4 2 . 3 5 A ± ( 4 3 . 5 A ± ) 189-040-11LARRY LYNCHRL160 142 A± (149.26 A±) 17 8 - 2 0 0 - 0 4 RI T A P H E L P S RL 1 6 0 2 . 7 9 A ± ( 3 . 2 7 A ± ) 178 - 2 6 0 - 7 8 SPR I N G S V I C H Y SR6 K 9 . 6 2 A ± ( 9 . 7 A ± ) 178-260-09MICHAEL MEAKERSR6K 0.92 A± (0.92 A±) 178-220-08MATT BOGNERRL160 97 A± (91.6 A±) 178-140-08RANCH HOOPERRL160 103 A± (96.03 A±) 178- 2 6 0 - 0 3 QI Z H A N G SR6K 0 . 9 9 A ± ( 0 . 9 9 A ± ) 178-090-12 PHYLLIS CURTIS RR5 13.25 A± (1 2 . 7 4 A ± ) 178-090-14 PHYLLIS CURTIS RR5 5.1 A± (5.18 A ± ) 178-080-04VIVIAN BERTSCHINGERRR5 6.18 A± (6.73 A±) 17 8 - 0 9 0 - 0 8 IS R A E L S T E E L E RR 5 8 A ± ( 1 2 . 3 9 A ± ) 178-140-09 RANCH HOOPER RR5 0 A± (2.77 A ± ) 178-060-22ISRAEL STEELERR5 78.5 A± (72.86 A±) 17 8 - 1 5 0 - 4 7 LA U R E N C E H A R T L E Y RR 1 0 A ± ( 1 . 3 A ± ) 178-15 0 - 5 5 CINDY B R E W E R RR1 0 A ± ( 1 . 1 6 A ± ) 178-130-01CITY UKIAHPF0 283.5 A± (306.95 A±) 17 8 - 1 5 0 - 5 0 JA M E S L A R S O N RR 1 0 A ± ( 2 . 2 A ± ) 178- 1 5 0 - 2 2 JESS E T I D W E L L RR1 0 A ± ( 0 . 9 4 A ± ) 178-090-17JOHN RHEINFRANK15.01 A± (15.57 A±) 178-120-03RANCH HOOPERRL160 276.3 A± (274.95 A±) 17 8 - 1 4 0 - 0 3 RA N C H H O O P E R RR 5 2 6 . 1 6 A ± ( 3 3 . 3 4 A ± ) 178-140-19 ISRAEL STEELE RR5 14 A± (15.78 A±) 178-060-25HARRY VANCERR5 29.13 A± (27.81 A±) 178-080-02JEAN GLENTZERRR5 4.72 A± (4.59 A±) 178-140-20 ISRAEL STEELE RR5 4.2 A± (3.58 A ± ) 17 8 - 2 6 0 - 2 4 EU G E N E B R U I N G T O N SR 6 K 1 . 2 5 A ± ( 1 . 2 6 A ± ) 178-26 0 - 5 8 LLC KIM B SR6K 0 . 8 2 A ± ( 0 . 8 3 A ± ) 1 7 8 - 2 6 0 - 3 5 E U G E N E B R U I N G T O N S R 6 K 3 . 3 4 A ± ( 3 . 3 4 A ± ) 17 8 - 2 2 0 - 0 9 RE T I R E M E N T R U S T I C RL 1 6 0 6 4 . 2 5 A ± ( 4 9 . 3 9 A ± ) 1 7 8 - 2 6 0 - 6 5 L L C K I M B S R 6 K 0 . 5 4 A ± ( 0 . 5 5 A ± ) 17 8 - 2 6 0 - 2 1 DE N N I S L O N G SR 6 K 1 . 2 4 A ± ( 1 . 2 4 A ± ) 18 9 - 0 1 0 - 1 5 DE V R A W O L F RL 1 6 0 4 . 2 A ± ( 3 . 9 7 A ± ) CASE: OWNER: APN: APLCT: AGENT: ADDRESS: µCDP 2021-0012 State of California (RoW) N/A Caltrans District 1 Steven Blair N. Highway 1, Fort Bragg 1:12,000 0 1,000500 Feet 0 0.150.075 Miles ME N D O C I N O C O U N T Y P L A N N I N G D E P A R T M E N T - 4 / 1 / 2 0 2 1 THIS MAP AND DATA ARE PROVIDED WITHOUT WARRANTY OF ANY KIND.DO NOT USE THIS MAP TO DETERMINE LEGAL PROPERTY BOUNDARIES Map produced by the Mendocino County Planning & Building Svcs. Dept., April, 2021Coordinate System: NAD 83, Calif. State Plane Zone IIProjection: Lambert Conformal ConicParcel Data: Mendocino County Information Services, October, 2018Aerial Imagery: US Dept. of Agriculture/ArcGIS Online mosaicTopographic Data: USGS 7.5 minute quad series Mount Diablo Base & MeridianParcel numbers are for tax purposes only and do not represent legal or salable parcels.All spatial data is approximate. This map is not a substitute for a proper land survey. ADJACENT PARCELS Page 109 of 858 L U F F C O U R T P E R RIER C O URT F A W N W O O D D R I V E ME D I C I N E WA Y BA R T L E T CO U R T ST . Y O R R E W A Y S A R A T O G A C O U R T T E H U A C A N R O A D A R DESCH C OURT ST. YO R R E COUR T CATALAN COURT CEL E S T I N COU R T ANTL E R ROA D DEERWOO D D R I V E EXTENSI O N APPOL I N A R I S DRIVE VICH Y S P R I N G S R O A D RL:CR PF R1 R1 SR:PD:CR RL RR1 RR5 SR:PD CASE: OWNER: APN: APLCT: AGENT: ADDRESS: µCDP 2021-0012 State of California (RoW) N/A Caltrans District 1 Steven Blair N. Highway 1, Fort Bragg 1:12,000 0 1,000500 Feet 0 0.150.075 Miles ME N D O C I N O C O U N T Y P L A N N I N G D E P A R T M E N T - 4 / 1 / 2 0 2 1 THIS MAP AND DATA ARE PROVIDED WITHOUT WARRANTY OF ANY KIND.DO NOT USE THIS MAP TO DETERMINE LEGAL PROPERTY BOUNDARIES Map produced by the Mendocino County Planning & Building Svcs. Dept., April, 2021Coordinate System: NAD 83, Calif. State Plane Zone IIProjection: Lambert Conformal ConicParcel Data: Mendocino County Information Services, October, 2018Aerial Imagery: US Dept. of Agriculture/ArcGIS Online mosaicTopographic Data: USGS 7.5 minute quad series Mount Diablo Base & MeridianParcel numbers are for tax purposes only and do not represent legal or salable parcels.All spatial data is approximate. This map is not a substitute for a proper land survey. Zoning Districts Cannabis Prohibition (CP) Districts Prohibition Districts Public Roads ZONING DISPLAY MAP Page 110 of 858 LU F F CO U R T P E RRIER C OURT F A W N W O O D D R I V E MEDICINEWAY BA R T L E T CO U R T ST . Y O R R E W A Y S A R A T O G A C O U R T T E H U A C A N ROAD A R DESCH C OURT ST. YO R R E COUR T C A T ALAN C O URT CEL E S T I N COU R T ANTL E R ROA D D E E R W O O D DR I V E E X T E N S I O N A P P O LINARISDRIVE V I C H Y S P RINGSROAD PS RL 160RR 1 RR 1-PD RR 5 SR SR SR CASE: OWNER: APN: APLCT: AGENT: ADDRESS: µCDP 2021-0012 State of California (RoW) N/A Caltrans District 1 Steven Blair N. Highway 1, Fort Bragg 1:12,000 0 1,000500 Feet 0 0.150.075 Miles ME N D O C I N O C O U N T Y P L A N N I N G D E P A R T M E N T - 4 / 1 / 2 0 2 1 THIS MAP AND DATA ARE PROVIDED WITHOUT WARRANTY OF ANY KIND.DO NOT USE THIS MAP TO DETERMINE LEGAL PROPERTY BOUNDARIES Map produced by the Mendocino County Planning & Building Svcs. Dept., April, 2021Coordinate System: NAD 83, Calif. State Plane Zone IIProjection: Lambert Conformal ConicParcel Data: Mendocino County Information Services, October, 2018Aerial Imagery: US Dept. of Agriculture/ArcGIS Online mosaicTopographic Data: USGS 7.5 minute quad series Mount Diablo Base & MeridianParcel numbers are for tax purposes only and do not represent legal or salable parcels.All spatial data is approximate. This map is not a substitute for a proper land survey. General Plan Classes Prohibition Districts Public Roads GENERAL PLAN CLASSIFICATIONS Page 111 of 858 Area #2 Page 112 of 858 C I T Y O F U K I A H CA S E : OW N ER: A PN : A PL C T: AG E N T: A D DR ESS: µU 2 0 2 1 -0 0 0 5 Und r in k a b l e, L L C 118 -53 0 -20 Aur a m De i xl e r Aur a m De i xl e r 430 5 0 L it t l e L a k e Road, Men docin o 1:6,000 0 500250 Feet 0 0.0850.0425 Miles MENDOCINO COUNT Y PLANNING DEPA RTMENT- 9/14/2021 THIS MAP AND DATA ARE PROVIDED WITHOUT WARRANTY OF ANY KIND.DO NOT USE THIS MAP TO DETERMINE LEGAL PROPERTY BOUNDARIES Map produced by the Mendocino County Planning & Building Svcs. Dept., September, 2021Coordinate System: NAD 83, Calif. State Plane Zone IIProjection: Lambert Conformal ConicParcel Data: Mendocino County Information Services, October, 2018Aerial Imagery: US Dept. of Agriculture/ArcGIS Online mosaicTopographic Data: USGS 7.5 minute quad series Mount Diablo Base & MeridianParcel numbers are for tax purposes only and do not represent legal or salable parcels.All spatial data is approximate. This map is not a substitute for a proper land survey. ,,,,,,,,,,,,,,,Russian River Flood District County Water Districts WAT E R D I S T R I C T S Page 113 of 858 001-040-92 RODERICK PIFFERO 335 JANIX DR 5 A± 001-030-03JAMES NIX 0 A±156-240-02OF CITY UR 40 1 A± 0 0 1 -0 3 0 -0 4 C I T Y U K I A H 0 A ± 001-040-90ISMAEL CEJA350 JANIX DR11.52 A± 156-190-03BONNIE WILDBERGER UR 40 80 A± 001-030-05DONALD STRICKLAND 0 A± 001-030-06 MATTHEW EIFFERT 1305 WE STANDLEY AVE 1.95 A± 156-250-02 FRANCISCO CASTRO 2200 WE STANDLEY ST UR 40 40 A± 001-040-02 GREGORY CAVALIN 40 A± 001-040-01JAMES NIX 40 A± 001-040-83DAVID HULL UR 40 77.6 A± 001-040-75ZIYAD IBRAHIM 6.6 A± 001-040-73JARED HULL315 JANIX DR6 A± 001-040-87DAVID HULL325 JANIX DR5.17 A± 156-240-09REX EIFFERT1915 WE STANDLEY AVEUR 40 1.58 A± 156-240-11 JOHN REX 1901 WE STANDLEY ST UR 40 2.37 A± 156-250-01BONNIE WILDBERGER UR 40 280 A± 001-030-01CITY UKIAH 45.97 A± 156-240-13OF CITY1970 WE STANDLEY AVEUR 40 40.11 A± 156-240-01BONNIE WILDBERGER UR 40 280 A± 001-040-85WILLIAM EDWARDS335 JANIX DR4.06 A± 001-040-81WILLIAM EDWARDS335 JANIX DRUR 40 2.4 A±CA S E : OW N ER: A PN : A PL C T: AG E N T: A D DR ESS: µU 2 0 2 1 -0 0 0 5 Und r in k a b l e, L L C 118 -53 0 -20 Aur a m De i xl e r Aur a m De i xl e r 430 5 0 L it t l e L a k e Road, Men docin o 1:6,000 0 500250 Feet 0 0.0850.0425 Miles SUBJECT PARCEL/S MENDOCINO COUNT Y PLANNING DEPA RTMENT- 9/14/2021 THIS MAP AND DATA ARE PROVIDED WITHOUT WARRANTY OF ANY KIND.DO NOT USE THIS MAP TO DETERMINE LEGAL PROPERTY BOUNDARIES Map produced by the Mendocino County Planning & Building Svcs. Dept., September, 2021Coordinate System: NAD 83, Calif. State Plane Zone IIProjection: Lambert Conformal ConicParcel Data: Mendocino County Information Services, October, 2018Aerial Imagery: US Dept. of Agriculture/ArcGIS Online mosaicTopographic Data: USGS 7.5 minute quad series Mount Diablo Base & MeridianParcel numbers are for tax purposes only and do not represent legal or salable parcels.All spatial data is approximate. This map is not a substitute for a proper land survey. City Limits A D J AC E N T PA RC E L S Page 114 of 858 RMR 40 CA S E : OW N ER: A PN : A PL C T: AG E N T: A D DR ESS: µU 2 0 2 1 -0 0 0 5 Und r in k a b l e, L L C 118 -53 0 -20 Aur a m De i xl e r Aur a m De i xl e r 430 5 0 L it t l e L a k e Road, Men docin o 1:6,000 0 500250 Feet 0 0.0850.0425 Miles MENDOCINO COUNT Y PLANNING DEPA RTMENT- 9/14/2021 THIS MAP AND DATA ARE PROVIDED WITHOUT WARRANTY OF ANY KIND.DO NOT USE THIS MAP TO DETERMINE LEGAL PROPERTY BOUNDARIES Map produced by the Mendocino County Planning & Building Svcs. Dept., September, 2021Coordinate System: NAD 83, Calif. State Plane Zone IIProjection: Lambert Conformal ConicParcel Data: Mendocino County Information Services, October, 2018Aerial Imagery: US Dept. of Agriculture/ArcGIS Online mosaicTopographic Data: USGS 7.5 minute quad series Mount Diablo Base & MeridianParcel numbers are for tax purposes only and do not represent legal or salable parcels.All spatial data is approximate. This map is not a substitute for a proper land survey. City Limits General Plan Classes G E N E R A L P L A N C L A S S I F I C AT I O N S Page 115 of 858 UR 40 R1H CA S E : OW N ER: A PN : A PL C T: AG E N T: A D DR ESS: µU 2 0 2 1 -0 0 0 5 Und r in k a b l e, L L C 118 -53 0 -20 Aur a m De i xl e r Aur a m De i xl e r 430 5 0 L it t l e L a k e Road, Men docin o 1:6,000 0 500250 Feet 0 0.0850.0425 Miles MENDOCINO COUNT Y PLANNING DEPA RTMENT- 9/14/2021 THIS MAP AND DATA ARE PROVIDED WITHOUT WARRANTY OF ANY KIND.DO NOT USE THIS MAP TO DETERMINE LEGAL PROPERTY BOUNDARIES Map produced by the Mendocino County Planning & Building Svcs. Dept., September, 2021Coordinate System: NAD 83, Calif. State Plane Zone IIProjection: Lambert Conformal ConicParcel Data: Mendocino County Information Services, October, 2018Aerial Imagery: US Dept. of Agriculture/ArcGIS Online mosaicTopographic Data: USGS 7.5 minute quad series Mount Diablo Base & MeridianParcel numbers are for tax purposes only and do not represent legal or salable parcels.All spatial data is approximate. This map is not a substitute for a proper land survey. City Limits Zoning Districts ZO N I N G D I S P L AY M A P Page 116 of 858 Area #3 Page 117 of 858 003-330-60HOWARD LEEC16K 0 A± (0.59 A±) 003-330-62CITY UKIAH0 A± (31.7 A±) 003-330-69 AVIATION UKIAH C16K 0 A± (0.4 A ± ) 003-330-44JOHN MCCOWENC16K 0 A± (2.08 A±) 00 3 - 4 2 0 - 3 5 FR A N C I S C O A L V A R E Z C1 6 K 1 . 2 3 A ± ( 1 . 2 2 A ± ) 003-330-63ALEX MORENOC16K 0 A± (0.97 A±) 003-330-65VALLEY DEEPC16K 3.9 A± (3.78 A±) 180-200-24UNIFIED UKIAHC112K 3.97 A± (4.22 A±) 003-330-39GILBERTO BARBAC16K 0.63 A± (0.63 A±) 003-310-10ENTERPRISE MARINO0 A± (0.06 A±) 1 8 0 - 2 0 0 - 0 1 V A L L E Y P O T T E R C 1 6 K 0 A ± ( 0 . 4 6 A ± ) 003-330-67VALLEY DEEPC16K 3.8 A± (3.74 A±) 1 8 0 - 2 0 0 - 2 3 U N I F I E D U K I A H C 1 1 2 K 5 . 8 8 A ± ( 6 . 1 3 A ± ) 003-330-64ENTERPISES SHELLBELLC16K 0 A± (0.56 A±) 00 3 - 4 3 0 - 8 2 GH U L A M A N S A R I C2 6 K 0 . 6 7 A ± ( 0 . 6 6 A ± ) 003-310-09INVESTMENT MAYFIELD0 A± (0.09 A±) 003-310-07CITY UKIAH0 A± (0.33 A±) 00 3 - 4 3 0 - 8 1 GH U L A M A N S A R I C1 6 K 1 . 1 3 A ± ( 1 . 2 3 A ± ) 003-330-59HOWARD LEEC16K 0 A± (0.59 A±)003-330-70 AVIATION UKIAH C16K 0 A± (0.44 A ± ) 003-330-61HOWARD LEEC16K 0 A± (0.57 A±) 003-310-06CITY UKIAH0 A± (0.35 A±) 003-330-68OF CITY C16K 1.94 A± (1.06 A±) 180-190-03ROBERT HOWARDC16K 2.02 A± (2.15 A±) 003-310-04CITY UKIAH0 A± (0.12 A±) 00 3 - 4 2 0 - 5 6 VA L L E Y U K I A H C1 6 K 0 A ± ( 0 . 6 4 A ± ) 003-310-08CITY UKIAH0 A± (43.38 A±) CASE: OWNER: APN: APLCT: AGENT: ADDRESS: µCDP 2021-0012 State of California (RoW) N/A Caltrans District 1 Steven Blair N. Highway 1, Fort Bragg 1:1,800 0 15075 Feet 0 0.0250.0125 Miles ME N D O C I N O C O U N T Y P L A N N I N G D E P A R T M E N T - 4 / 1 / 2 0 2 1 THIS MAP AND DATA ARE PROVIDED WITHOUT WARRANTY OF ANY KIND.DO NOT USE THIS MAP TO DETERMINE LEGAL PROPERTY BOUNDARIES Map produced by the Mendocino County Planning & Building Svcs. Dept., April, 2021Coordinate System: NAD 83, Calif. State Plane Zone IIProjection: Lambert Conformal ConicParcel Data: Mendocino County Information Services, October, 2018Aerial Imagery: US Dept. of Agriculture/ArcGIS Online mosaicTopographic Data: USGS 7.5 minute quad series Mount Diablo Base & MeridianParcel numbers are for tax purposes only and do not represent legal or salable parcels.All spatial data is approximate. This map is not a substitute for a proper land survey. City Limits ADJACENT PARCELS Page 118 of 858 JEFFERSON LANE JEFFERSON LANE FIRCREST D R I V E S O U T H S T A T E S T R E E T PF C1 C1 C2 CASE: OWNER: APN: APLCT: AGENT: ADDRESS: µCDP 2021-0012 State of California (RoW) N/A Caltrans District 1 Steven Blair N. Highway 1, Fort Bragg 1:1,800 0 15075 Feet 0 0.0250.0125 Miles ME N D O C I N O C O U N T Y P L A N N I N G D E P A R T M E N T - 4 / 1 / 2 0 2 1 THIS MAP AND DATA ARE PROVIDED WITHOUT WARRANTY OF ANY KIND.DO NOT USE THIS MAP TO DETERMINE LEGAL PROPERTY BOUNDARIES Map produced by the Mendocino County Planning & Building Svcs. Dept., April, 2021Coordinate System: NAD 83, Calif. State Plane Zone IIProjection: Lambert Conformal ConicParcel Data: Mendocino County Information Services, October, 2018Aerial Imagery: US Dept. of Agriculture/ArcGIS Online mosaicTopographic Data: USGS 7.5 minute quad series Mount Diablo Base & MeridianParcel numbers are for tax purposes only and do not represent legal or salable parcels.All spatial data is approximate. This map is not a substitute for a proper land survey. City Limits Zoning Districts Public Roads ZONING DISPLAY MAP Page 119 of 858 J E F F E R S O N L A N E JEFFERSON LANE FIRCREST D R I V E S O U T H S T A T E S T R E E T C C MU-2 MU-2 PS CASE: OWNER: APN: APLCT: AGENT: ADDRESS: µCDP 2021-0012 State of California (RoW) N/A Caltrans District 1 Steven Blair N. Highway 1, Fort Bragg 1:1,800 0 15075 Feet 0 0.0250.0125 Miles ME N D O C I N O C O U N T Y P L A N N I N G D E P A R T M E N T - 4 / 1 / 2 0 2 1 THIS MAP AND DATA ARE PROVIDED WITHOUT WARRANTY OF ANY KIND.DO NOT USE THIS MAP TO DETERMINE LEGAL PROPERTY BOUNDARIES Map produced by the Mendocino County Planning & Building Svcs. Dept., April, 2021Coordinate System: NAD 83, Calif. State Plane Zone IIProjection: Lambert Conformal ConicParcel Data: Mendocino County Information Services, October, 2018Aerial Imagery: US Dept. of Agriculture/ArcGIS Online mosaicTopographic Data: USGS 7.5 minute quad series Mount Diablo Base & MeridianParcel numbers are for tax purposes only and do not represent legal or salable parcels.All spatial data is approximate. This map is not a substitute for a proper land survey. City Limits General Plan Classes Public Roads GENERAL PLAN CLASSIFICATIONS Page 120 of 858 Areas #4 & #5 Page 121 of 858 WILLOW WATERDISTRICT CITY OF UKIAH CASE: OWNER: APN: APLCT: AGENT: ADDRESS: µCDP 2021-0012 State of California (RoW) N/A Caltrans District 1 Steven Blair N. Highway 1, Fort Bragg 1:10,800 0 900450 Feet 0 0.150.075 Miles ME N D O C I N O C O U N T Y P L A N N I N G D E P A R T M E N T - 4 / 1 / 2 0 2 1 THIS MAP AND DATA ARE PROVIDED WITHOUT WARRANTY OF ANY KIND.DO NOT USE THIS MAP TO DETERMINE LEGAL PROPERTY BOUNDARIES Map produced by the Mendocino County Planning & Building Svcs. Dept., April, 2021Coordinate System: NAD 83, Calif. State Plane Zone IIProjection: Lambert Conformal ConicParcel Data: Mendocino County Information Services, October, 2018Aerial Imagery: US Dept. of Agriculture/ArcGIS Online mosaicTopographic Data: USGS 7.5 minute quad series Mount Diablo Base & MeridianParcel numbers are for tax purposes only and do not represent legal or salable parcels.All spatial data is approximate. This map is not a substitute for a proper land survey. City Limits ,,,,,,,,,,,,,,,Russian River Flood District County Water Districts Ukiah Valley Sanitation Dist. DISTRICTS Area #4 Area #5 Page 122 of 858 18 0 - 1 2 0 - 1 6 OF C I T Y 0.4 5 A ± ( 0 . 4 9 A ± ) 183-080-01RANCH HOOPERAG40 81.72 A± (90.08 A±) 180-120-15OF CITY5.39 A± (5.28 A±) 184-160-01DAVID KOBALLAG40 45.2 A± (46.91 A±) 1 8 4 - 1 1 0 - 2 6 R I C H A R D M A T T E R N I 2 6 K 3 . 4 A ± ( 3 . 3 9 A ± ) 1 8 4 - 1 0 0 - 0 7 C O U N T Y O F M E N D O C I N O 0 A ± ( 0 . 7 5 A ± ) 183-060-02RUDDICK LARGOAG40 72 A± (67.82 A±) 1 8 4 - 0 8 0 - 3 6 O F C I T Y A G 4 0 2 . 8 A ± ( 2 . 8 9 A ± ) 183-020-03VINEYARDS BECKSTOFFERAG40 53.21 A± (49.78 A±) 1 8 4 - 1 1 0 - 2 7 R I C H A R D M A T T E R N I1 6 K 8 . 1 A ± ( 7 . 5 6 A ± ) 184-170-07 INVESTMENT YU L U P A I16K 1.74 A± (1 . 7 8 A ± ) 1 8 4 - 1 1 0 - 1 5 T R A N S I T M E N D O C I N O I 2 6 K 1 . 9 1 A ± ( 1 . 8 7 A ± ) 1 8 4 - 1 1 0 - 1 1 W O O D C O A S T I 2 6 K 0 A ± ( 4 . 2 7 A ± ) 18 4 - 1 1 0 - 1 0 AN N E X R E D W O O D I1 6 K 4 . 6 5 A ± ( 4 . 6 2 A ± ) 184-100-05CITY UKIAHAG40 15.45 A± (15.51 A±) 18 4 - 1 1 0 - 2 2 RI C H A R D M A T T E R N C2 6 K 2 . 2 A ± ( 2 . 1 4 A ± ) 184-090-06OF CITYAG40 14.05 A± (14.17 A±) 184-100-04OF CITYAG40 10.52 A± (11.25 A±) 184-100-10OF CITY 3.01 A± (2.88 A±) 183-060-01 RANCH RUDDICK AG40 25.74 A± (21.34 A±) 18 4 - 1 1 0 - 2 4 JO H N M A T T E R N C2 6 K 5 . 4 A ± ( 5 . 2 A ± ) 184-110-12 TRANSIT MENDOCINO I26K 1.43 A± (1.45 A±) 184-150-01OF CITYAG40 43 A± (43.02 A±) 184-140-17INVESTMENT YULUPAI2 12.18 A± (12.07 A±) 183-070-01RANCH HOOPERAG40 74.45 A± (74.82 A±) 184-140-11 SOLID MENDOCINO AG40 0 A± (1.92 A±) 1 8 0 - 1 2 0 - 1 8 B E R N A R D O R S I A G 4 0 8 . 1 2 A ± ( 8 . 6 4 A ± ) 183-030-02RANCH RUDDICKAG40 50 A± (48.35 A±) 184-100-11OF CITYAG40 55.88 A± (55.42 A±) 183-020-02FARMS HILDRETHAG40 22.68 A± (24.2 A±) 184-140-13OF CITY I26K 4.05 A± (4.3 A±) 184-080-37OF CITYAG40 4.5 A± (4.07 A±) 184-170-03 INVESTMENT YU L U P A I16K 0 A± (3.52 A ± ) 18 0 - 1 2 0 - 1 7 BE R N A R D O R S I AG 4 0 2 A ± ( 1 . 9 3 A ± ) 184-080-33 BERNARD ORSI AG40 2.19 A± (2. 2 1 A ± ) 184-080-3 5 BERNARD O R S I AG40 0.69 A ± ( 0 . 6 7 A ± ) 1 8 4 - 1 4 0 - 0 5 V E N T U R E S T A R R A G O N C 2 6 K 0 A ± ( 1 . 2 3 A ± ) 1 8 5 - 0 2 0 - 0 7 L E L A N D L A M A L F A S R 6 K 1 5 . 3 5 A ± ( 1 6 . 1 9 A ± ) 1 8 4 - 1 4 0 - 1 2 S L C 2 6 K 2 . 6 2 A ± ( 2 . 6 2 A ± ) 183-040-01RANCH RUDDICKAG40 41.01 A± (43.82 A±) 1 8 4 - 0 7 0 - 1 6 R I C H A R D M A T T E R N I 1 6 K 4 A ± ( 3 . 9 9 A ± ) 184-090-01OF CITYAG40 4 A± (4.01 A±) 184-090-07OF CITYAG40 13.92 A± (16.76 A±) 18 4 - 0 7 0 - 1 5 RI C H A R D M A T T E R N C2 6 K 1 1 . 1 4 A ± ( 1 2 . 0 1 A ± ) 1 8 4 - 1 4 0 - 0 8 W O O D C O A S T I 2 6 K 3 . 6 2 A ± ( 3 . 6 4 A ± ) 1 8 4 - 0 6 3 - 1 1 D O U G L A S C R A N E I 1 6 K 0 A ± ( 1 . 9 1 A ± ) 184-170-02INVESTMENT YULUPAAG40 0 A± (3.4 A±)184-170-11INVESTMENT YULUPAI16K 8 A± (7.93 A±) 1 8 4 - 0 8 0 - 0 8 J E S U S S I L V A A G 4 0 0 A ± ( 0 . 2 9 A ± ) 1 8 4 - 1 7 0 - 1 0 J A M E S M I L O V I N A A G 4 0 1 3 . 5 9 A ± ( 1 4 . 2 6 A ± ) 185-030-13RENEE ADAIRR16K 0 A± (0.27 A±) 184-080-38 PROPERTIES NO R G A R D AG40 0.46 A± (0 . 6 1 A ± ) CASE: OWNER: APN: APLCT: AGENT: ADDRESS: µCDP 2021-0012 State of California (RoW) N/A Caltrans District 1 Steven Blair N. Highway 1, Fort Bragg 1:6,412 0 530265 Feet 0 0.0950.0475 Miles ME N D O C I N O C O U N T Y P L A N N I N G D E P A R T M E N T - 4 / 1 / 2 0 2 1 THIS MAP AND DATA ARE PROVIDED WITHOUT WARRANTY OF ANY KIND.DO NOT USE THIS MAP TO DETERMINE LEGAL PROPERTY BOUNDARIES Map produced by the Mendocino County Planning & Building Svcs. Dept., April, 2021Coordinate System: NAD 83, Calif. State Plane Zone IIProjection: Lambert Conformal ConicParcel Data: Mendocino County Information Services, October, 2018Aerial Imagery: US Dept. of Agriculture/ArcGIS Online mosaicTopographic Data: USGS 7.5 minute quad series Mount Diablo Base & MeridianParcel numbers are for tax purposes only and do not represent legal or salable parcels.All spatial data is approximate. This map is not a substitute for a proper land survey. City Limits ADJACENT PARCELS Area #4 Area #5 Page 123 of 858 STIPP LANE SR 253 NORGARD LANE S O U T H S T A T E S T R E E T PLANT ROAD US 1 0 1 T A Y L O R D R I V E U S 1 0 1 U S 1 0 1 PD PF AG 40AG 40 AG 40 C2 C2 I1 I1 I2 SR I1 CASE: OWNER: APN: APLCT: AGENT: ADDRESS: µCDP 2021-0012 State of California (RoW) N/A Caltrans District 1 Steven Blair N. Highway 1, Fort Bragg 1:6,000 0 500250 Feet 0 0.0850.0425 Miles ME N D O C I N O C O U N T Y P L A N N I N G D E P A R T M E N T - 4 / 1 / 2 0 2 1 THIS MAP AND DATA ARE PROVIDED WITHOUT WARRANTY OF ANY KIND.DO NOT USE THIS MAP TO DETERMINE LEGAL PROPERTY BOUNDARIES Map produced by the Mendocino County Planning & Building Svcs. Dept., April, 2021Coordinate System: NAD 83, Calif. State Plane Zone IIProjection: Lambert Conformal ConicParcel Data: Mendocino County Information Services, October, 2018Aerial Imagery: US Dept. of Agriculture/ArcGIS Online mosaicTopographic Data: USGS 7.5 minute quad series Mount Diablo Base & MeridianParcel numbers are for tax purposes only and do not represent legal or salable parcels.All spatial data is approximate. This map is not a substitute for a proper land survey. City Limits Zoning Districts Community Character (CC) Districts Public Roads ZONING DISPLAY MAP Area #4 Area #5 Page 124 of 858 STIPP LANE SR 253 NORGARD LANE S O U T H S T A T E S T R E E T PLANT ROAD US 1 0 1 T A Y L O R D R I V E U S 1 0 1 US 1 0 1 MU-2 SR AG 40 C I I CASE: OWNER: APN: APLCT: AGENT: ADDRESS: µCDP 2021-0012 State of California (RoW) N/A Caltrans District 1 Steven Blair N. Highway 1, Fort Bragg 1:6,000 0 500250 Feet 0 0.0850.0425 Miles ME N D O C I N O C O U N T Y P L A N N I N G D E P A R T M E N T - 4 / 1 / 2 0 2 1 THIS MAP AND DATA ARE PROVIDED WITHOUT WARRANTY OF ANY KIND.DO NOT USE THIS MAP TO DETERMINE LEGAL PROPERTY BOUNDARIES Map produced by the Mendocino County Planning & Building Svcs. Dept., April, 2021Coordinate System: NAD 83, Calif. State Plane Zone IIProjection: Lambert Conformal ConicParcel Data: Mendocino County Information Services, October, 2018Aerial Imagery: US Dept. of Agriculture/ArcGIS Online mosaicTopographic Data: USGS 7.5 minute quad series Mount Diablo Base & MeridianParcel numbers are for tax purposes only and do not represent legal or salable parcels.All spatial data is approximate. This map is not a substitute for a proper land survey. City Limits General Plan Classes Public Roads GENERAL PLAN CLASSIFICATIONS Area #4 Area #5 Page 125 of 858 Page 1 of 2 Agenda Item No: 7.e. MEETING DATE/TIME: 1/19/2022 ITEM NO: 2022-10 AGENDA SUMMARY REPORT SUBJECT: Report to Council on PO #47411 Issued to Corrosion Protection Solutions in the Amount of $61,560, as well as Change Order #01 in the Amount of $4,843.80, for a Total of $66,403, and Request a Budget Amendment for this Amount. DEPARTMENT: Water Resources PREPARED BY: Mary Williamson, Buyer II PRESENTER: Sean White, Water Resources Director ATTACHMENTS: 1. Corrosion Protection Solutions Summary: Council will receive a report on PO #47411 issued to Corrosion Protection Solutions in the amount of $61,560, as well as Change Order #01 in the amount of $4,843.80, for a total of $66,403, and request a Budget Amendment for this amount. Background: In early 2021, Water Resources staff noticed a sharp increase in turbidity readings from Well 4. After a teardown and inspection of the facility, it was determined that the turbidity was caused by severely accelerated corrosion of the pump column. The pump column was replaced, and turbidity levels returned to normal. Discussion: In order to prevent the same type of aggressive galvonic corrosion that resulted in the premature failure of the previous pump column, staff followed the repairs with the installation of a cathodic protection system. Purchase of the system was expedited so Well 4 could be reassembled and put back into service prior to the high demand season. This was particularly urgent with surface water rights being curtailed. A copy of the original proposal for Turnkey Corrosion Protection System - Summer 2021, Water Well #4 - Submerged Well Pipe, as well as a copy of the invoice to provide an additional day of work is attached (Attachment 1). Recommended Action: Council will receive a report on PO #47411 issued to Corrosion Protection Solutions in the amount of $61,560, as well as Change Order #01 in the amount of $4,843.80, for a total of $66,403 and request a Budget Amendment for this amount. BUDGET AMENDMENT REQUIRED: Yes CURRENT BUDGET AMOUNT: 82227113.80230.18281: $0 PROPOSED BUDGET AMOUNT: 82227113.80230.18281: $66,404 FINANCING SOURCE: Fund 820 PREVIOUS CONTRACT/PURCHASE ORDER NO.: PO 47411 COORDINATED WITH: Dave Kirch, Fleet & Maintenance Supervisor; Sean White, Director of Water Resources; Mary Horger, Financial Services Manager Page 126 of 858 Page 2 of 2 Page 127 of 858 Attachment 1 Page 128 of 858 Page 129 of 858 Page 130 of 858 Page 131 of 858 Page 132 of 858 Page 133 of 858 Page 134 of 858 Page 135 of 858 Page 136 of 858 Page 137 of 858 Page 138 of 858 Page 139 of 858 Page 140 of 858 Page 141 of 858 Page 142 of 858 Page 1 of 2 Agenda Item No: 7.f. MEETING DATE/TIME: 1/19/2022 ITEM NO: 2022-11 AGENDA SUMMARY REPORT SUBJECT: Approval of Contract Amendment with BKF Engineers for the Additional Design to the Gobbi Street Utility Replacement Project, and Approval of a Corresponding Budget Amendment. DEPARTMENT: Public Works PREPARED BY: PRESENTER: Tim Eriksen, Director of Public Works / City Engineer ATTACHMENTS: 1. BKF Traffic Signal Proposal - Ukiah Gobbi St Summary: The City Council will consider giving approval of a contract amendment with BKF Engineers for the additional design to the Gobbi Street Utility Replacement Project, which includes the addition of traffic signal design at East Gobbi Street and Main Street, and consider approving a corresponding budget amendment. Background: At the September 1, 2021 meeting, Council awarded a professional services agreement to BKF Engineers in the amount of $195,789 to prepare the plans, specifications and estimate for the Gobbi Street Utility Replacement Project. The project involves the replacement of the water and sewer utilities on Gobbi Street from US Highway 101 to South Dora Street. Final work will also include the design of ADA curb ramps as well as rehabilitation of the road. The electric and cable facilities have already been installed underground. After design and study of the two intersections at Gobbi/Waugh and Gobbi/State, City staff identified the need to replace the four-way stop at Gobbi/Main with a traffic signal. In an effort to improve the east to west traffic flow on Gobbi Street as a main corridor, it is necessary to interconnect these three traffic signals to coordinate traffic timing and minimize backups. Discussion: City staff requested a proposal for design services from BKF Engineers for the additional scope of preparing plans, specifications and estimates for the construction of a traffic signal at Gobbi Street and Main Street. This design will include traffic signal assembly, service enclosure, poles, vehicle and pedestrian indications and all necessary equipment per Caltrans standards, as well as upgrading existing curb ramps at the intersection to current ADA standards. Plans will also include interconnection between the intersection of Gobbi/State to the intersection of Gobbi/Waugh for corridor signal operation. The total fee for these additional professional services will be $45,788. (Attachment 1) A budget amendment will be necessary in Fund 120 (Measure Y) to cover this additional work. Recommended Action: Approve contract amendment with BKF Engineers for the additional design to the Gobbi Street Utility Replacement Project, and approve corresponding budget amendment. BUDGET AMENDMENT REQUIRED: Yes CURRENT BUDGET AMOUNT: 12024200.80230.18290: $65,263; 82227113.80230.18290: $65,263; 84427221.80230.18290: $65,263 PROPOSED BUDGET AMOUNT: 12024200.80230.18290: $111,051; 82227113.80230.18290: $65,263; 84427221.80230.18290: $65,263 FINANCING SOURCE: N/A PREVIOUS CONTRACT/PURCHASE ORDER NO.: COU No. 2122-105 Page 143 of 858 Page 2 of 2 COORDINATED WITH: Tim Eriksen, Director of Public Works / City Engineer Page 144 of 858 BKF ENGINEERS 200 4th Street, Suite 300, Santa Rosa, CA 95401 | 707.583.8500 January 3, 2022 BKF No C20210758-10 Andrew Stricklin, Associate Engineer Dept. of Public Works City of Ukiah 300 Seminary Avenue Ukiah, CA 95482 Transmitted Via Email Subject: Ukiah Gobbi Street Utility Replacement Additional Service Request No. 1 Traffic Signal Installation at the Gobbi Street /Main Street Intersection Andrew: BKF is pleased to submit this additional service request for engineering services to prepare traffic signal installation plans for the intersection of Gobbi Street / Main Street in the City of Ukiah, as requested by the City. The additional design work illustrated herein will become part of the Gobbi Street Utility Replacement design package, including plans, specifications as notes on plans, and estimate. The following scope is presented to address your request for additional services. Scope of Services TASK 7: TRAFFIC SIGNAL DESIGN AT GOBBI STREET / MAIN STREET BKF will prepare traffic signal plans at the intersection to install a traffic signal system. The signal plans will include traffic signal controller assembly, electric service enclosure, traffic signal poles, pull boxes, vehicular and pedestrian signal indications, detection system for both vehicular and pedestrian traffic, conduits and conductors. BKF anticipates that the traffic signal installation plan with a designed scale of 1”=20’. Signal equipment, including signal poles and signal mast arms, vehicular and pedestrian signal indications, controller cabinets and pull boxes are anticipated be shown on signal plan sheet in accordance with Caltrans and the City’s standard legend. The traffic signal installation plans will also include a conduit and wiring schedule, pole and equipment schedule to clearly delineate type of signal poles, length of signal mast arms, signal indication mounting details, conduit and conductors routing. Plans will be based on Caltrans standards and City of Ukiah standard practices. As part of signal design process BKF will also coordinate with PG&E for the possible electric service for the proposed traffic signal at this intersection. BKF will not be responsible for the service application fees charged by PG&E. BKF assumes that signal warrants study is not part of scope of work and a copy of specification for a recent traffic signal project will be provided by the City. TASK 8: TRAFFIC SIGNAL INTERCONNECTION DESIGN FROM SOUTH STATE STREET TO WAUGH LANE BKF will prepare construction plans for signal interconnection between the intersection of Gobbi/State to the intersection of Gobbi/Waugh for a corridor signal coordination operation. As part of the scope BKF assumes that Encom wireless communication devices will be implemented. TASK 9: CORRIDOR TRAFFIC SIGNAL TIMING PLANS FROM SOUTH STATE STREET TO WAUGH LANE ATTACHMENT 1 Page 145 of 858 January 3, 2022 Page 2 of 3 BKF ENGINEERS The corridor traffic signal timing plans will be prepared by Elite Transportation Group (ETG), BKF’s sub consultant, at the following intersections: 1.Gobbi Street / State Street 2.Gobbi Street / Main Street 3.Gobbi Street / Waugh lane The following tasks will be performed by ETG: ·Data Collection – Week day AM (7-9) and PM (4-6) intersection turning movements will be conducted at three intersections. ·Existing Conditions Baseline Synchro Models - Synchro models for the study periods (AM and PM Peak) models will be developed using Synchro Version 10.0 software ·Signal Timing Plan Optimization - Develop optimized signal timing plans using the baseline Synchro models for weekday both AM and PM peak hours. TASK 10: CURB RAMP DESIGN AT GOBBI STREET / MAIN STREET BKF will prepare curb ramp grading details for the curb ramps at the intersection of Gobbi Street and Main Street. BKF will prepare these plan with a designed scale of 1”=10’ for clarity. Plans will be prepared based on the City of Ukiah standards, details and specifications. Scope Qualifications and Assumptions BKF’s services are limited to those expressly set forth in the scope. BKF shall have no other obligations or responsibilities for the project, except as provided in this proposal letter, or as agreed to in writing. BKF’s services shall be provided consistent with and limited to the standard of care acceptable to such services, which is that BKF shall provide its services consistent with the professional skill and care ordinarily provided by consultants practicing in the same or similar locality under the same or similar circumstances. Schedule BKF is able to commence working on this project immediately upon your authorization to proceed. Fees for Professional Services BKF proposes to provide the services on a Time & Materials basis as noted in the table below. We will invoice for our services on a percent complete basis for each task summarized as follows: TASK DESCRIPTION FEE 7 Traffic Signal Design at Gobbi Street / Main Street $25,598 8 Traffic Signal Interconnection Design from South State Street to Waugh Lane $5030 9 Corridor Traffic Signal Timing Plans from South State Street to Waugh Lane $8,675 10 Curb Ramp Design at Gobbi Street / Main Street $5200 RE Reimbursable Expenses $1,285 TOTAL CIVIL FEE $45,788 It is recognized that is additional service request is an amendment to our Professional Services Agreement between BKF Engineers and the City of Ukiah, dated September 7, 2021. All terms of said agreement will remain the same except for the scope and fee items explicitly stated herein. Page 146 of 858 January 3, 2022 Page 3 of 3 BKF ENGINEERS Should you have any questions, or would like additional clarification on any aspect of the scope of work, please feel free to contact me at 707-583-8515. Respectfully, BKF Engineers ___________________________ Jason Kirchmann, PE, PLS Vice President Page 147 of 858 Page 1 of 2 Agenda Item No: 7.g. MEETING DATE/TIME: 1/19/2022 ITEM NO: 2021-1217 AGENDA SUMMARY REPORT SUBJECT: Adopt Resolution and Approve the Support Services Program Agreement (SSPA) with the Northern California Power Agency (NCPA) DEPARTMENT: Electric Utility PREPARED BY: Diann Lucchetti, Administrative Secretary PRESENTER: Cindy Sauers, Electric Utility Director ATTACHMENTS: 1. Support_Services_Program_Agreement 2. Resolution NCPA-Ukiah SSPA Summary: Council will consider adopting a Resolution and approve the Support Services Program Agreement (SSPA) between the Northern California Power Agency (NCPA) and the City of Ukiah (City); authorize the City Manager or his delegate to execute the agreement; appoint the City Attorney, the City Manager, and Electric Utility Director as Designated Representatives under the SSPA; and delegate authority to them to jointly execute service confirmations for amounts not to exceed $20,000 per confirmation. Background: The City is a member of Northern California Power Agency (NCPA), a joint action agency providing members with opportunities for joint generation, transmission and other projects, as well as other supporting programs such as scheduling and dispatch services and publicly owned utility legislative advocacy services. The City currently receives benefits from various projects and programs offered by NCPA. NCPA expanded service offerings to its members under the attached Support Services Agreement (Attachment 1), which provides additional economies of scale and efficiency savings through joint contracting among members. Other NCPA members have already executed the SSPA, namely: The Cities of Alameda, Biggs, Lodi, Lompoc, Redding, and Roseville along with the Port of Oakland and Truckee Donner Public Utilities District. Discussion: Approval of the SSPA with NCPA will allow the City the opportunity to utilize various support services offered by NCPA. Additional services NCPA may offer to the City under the SSPA include, but are not limited to, engineering services, transmission and distribution planning, power marketing and analysis, employee training, employment and human relations assistance, customer services and billing, metering and data management, power plant operations, and other forms of assistance and professional services relating to the operation of a publicly owned electric utility, as related to either the generation, transmission, or distribution of electricity or the wholesale or retail operation of such a utility, all within the scope of the NCPA Joint Powers Agreement. Under the SSPA, Designated Representatives are responsible for committing to individual service offerings on behalf of the member organization and such Designated Representatives are delegated authority by their governing board or City Council to bind the City/member to contractually receive and pay for such elected services. The agreement automatically renews annually, with two years advance written notice of termination required. The authorization to Designated Representatives allows NCPA to rely on their signatures as binding the City, if the cost of the particular service is within the specific dollar limits on the Designated Representatives’ authority. However, before the Designated Representatives sign each confirmation, the City will verify the associated NCPA Multi-Task service agreement meets the City’s insurance and indemnification Page 148 of 858 Page 2 of 2 requirements. Fiscal Impact: None. Funding source: approved budget or City Council approved budget amendment. Amounts greater than $20,000 per confirmation will require Council approval. Costs related to this agreement will be based on the City’s level of participation and use of the various services offered in each specific procurement activity or service provided by NCPA. Staff Recommendation: Adopt Resolution (Attachment 2) and approve the Support Services Program Agreement (SSPA) between NCPA and the City of Ukiah (City); authorize the City Manager or his delegate to execute the agreement; Appoint the City Attorney, City Manager, and Electric Utility Director as Designated Representatives under the SSPA and authority to them, together, to execute service confirmations for amounts not to exceed $20,000 per confirmation or such greater amount as may be authorized by City Council action or applicable City ordinance. Recommended Action: Adopt Resolution and approve the Support Services Program Agreement (SSPA) between NCPA and the City of Ukiah (City); authorize the City Manager or his delegate to execute the agreement; Appoint the City Attorney, City Manager, and Electric Utility Director as Designated Representatives under the SSPA and authorize them, together, to execute service confirmations for amounts not to exceed $20,000 per confirmation or such greater amount as may be authorized by City Council action or applicable City ordinance. BUDGET AMENDMENT REQUIRED: No CURRENT BUDGET AMOUNT: N/A PROPOSED BUDGET AMOUNT: N/A FINANCING SOURCE: N/A PREVIOUS CONTRACT/PURCHASE ORDER NO.: N/A COORDINATED WITH: David Rapport, City Attorney, Mary Horger, Financial Services Manager and Norther California Power Agency Page 149 of 858 1 ES-AGY-2016-001 NORTHERN CALIFORNIA POWER AGENCY SUPPORT SERVICES PROGRAM AGREEMENT Attachment 1 Page 150 of 858 Page 151 of 858 3 ES-AGY-2016-001 (3) Support Services does not include services provided by NCPA pursuant to third phase agreements relating to generation projects or other project agreements previously or subsequently entered into by NCPA and certain of its Members. (4) Support Services does not include any on-going services which are to be provided by NCPA to its Members through program agreements. For example, Support Services does not include any legislative and regulatory services provided through the Legislative and Regulatory Affairs Program Agreement. D. The Signatory Members desire that NCPA negotiate and enter into agreements with third parties to provide the Support Services for the benefit of Participating Members. This Agreement does not authorize NCPA to directly provide Support Services utilizing NCPA’s own staff, except in limited circumstances. Such direct provision of Support Services may be provided to one or more Members through either a Single Member Service Agreement or a Professional Services/Operating Agreement as deemed appropriate by NCPA. E. Each Support Service will be offered by NCPA to all the Signatory Members. Those Signatory Members wishing to accept the offer with respect to a particular Support Service will execute a written confirmation for that Support Service (a “Confirmation”) and thereby become a Participating Member with respect to such Support Service. The Participating Members executing a particular Confirmation will pay NCPA the cost of providing the Support Services offered by such Confirmation as detailed in the Confirmation including the cost of developing the Confirmation; Signatory Members not executing a particular Confirmation will have no obligation with respect to the Support Services provided pursuant to that Confirmation. F. Each Signatory Member, in executing this Agreement, will provide the identity of the Designated Representatives authorized to execute Confirmations on its behalf, and agrees that, subject to such not to exceed dollar limitations as are set forth in its signature page to this Agreement (as such limitations may be amended), any Confirmations executed by such Designated Representatives are binding upon the Signatory Member without further approval by the Signatory Member’s Governing Board. G. NCPA desires to provide, and the Signatory Members desire to secure, Support Services under this Agreement in a manner that balances their operational and economic interests and the interests of other NCPA Members with the ongoing financial viability and professional responsibilities of NCPA. Accordingly, Signatory Members desire to secure Support Services under this Agreement by accepting a limited insurance based recourse against NCPA, with the option of procuring additional insurance at Signatory Members’ sole expense, thereby ensuring that NCPA will substantially limit its risk for the provision of such Support Services which, in turn, allocates risks back to the Signatory Members in the event NCPA is not adequately insured. NOW, THEREFORE, the Parties agree as follows: Page 152 of 858 4 ES-AGY-2016-001 Section 1. Definitions and Interpretation. 1.1 Definitions. Whenever used in this Agreement (including in the preamble and recitals hereto), the following terms shall have the means ascribed to them in this section: “Agreement” means this NCPA Support Services Program Agreement, including all exhibits or schedules attached hereto, as the same may be amended from time to time in accordance with the terms and conditions hereof. “All Resources Bill” means the single, combined monthly invoice from NCPA to a Participating Member with respect to all NCPA programs and projects. “Annual Budget” means the budget for the Fiscal Year adopted by the Commission, as it may be amended from time to time. “Associate Member” means the Plumas-Sierra Rural Electric Cooperative, an associate member of NCPA. “Business Day” means any day except a Saturday, Sunday or a Federal Reserve Bank holiday. A Business Day shall open at 8:00 a.m. and close at 5:00 p.m., Pacific Time. “Commission” means the NCPA Commission. “Confirmation” has the meaning set forth in the recitals hereto. “Costs” means both (i) the cost billed to NCPA by a third party provider of Support Services, plus (ii) the direct or indirect costs incurred by NCPA in obtaining such Support Services from the third party provider, including development of the Confirmation, administration of any agreements with the third party provider and any over-head costs incurred. Overhead costs shall be determined by NCPA on a Confirmation –by- Confirmation basis. “Costs” shall also include any NCPA direct or indirect costs, including salary, incurred in those limited instances where NCPA directly provides the Support Services under a Confirmation. “Constitutive Documents” means, with respect to NCPA, the Joint Powers Agreement and any resolutions or bylaws adopted thereunder, and with respect to each Signatory Member, the California Government Code and other statutory provisions applicable to such Signatory Member and any applicable agreements, charters, contracts, or other documents concerning the formation, operation or decision making of such Signatory Member, including, if applicable, its City Charter, and any codes, ordinances, bylaws, and resolutions adopted by such Signatory Member’s Governing Body. “Defaulting Party” has the meaning set forth in Section 12.1. Page 153 of 858 5 ES-AGY-2016-001 “Designated Representatives” means, with respect to NCPA, both its General Manager, and its General Counsel, acting jointly, and with respect to each Signatory Member means both its Utility Director (or an employee or official other than the Utility Director designated by resolution of the Signatory Member’s Governing Board) and its City Attorney or General Counsel, acting jointly. “Effective Date” has the meaning set forth in the preamble hereof. “Electric System” means, with respect to each Signatory Member except the San Francisco Bay Area Rapid Transit District (“BART”), all properties and assets, real and personal, tangible and intangible, of the Signatory Member now or hereafter existing, used or pertaining to the generation for resale, transmission, transformation, distribution or sale of electric capacity and energy, or the utilization of such, including all additions, extensions, expansions, improvements and betterments thereto and equipment thereof; provided, however, that to the extent the Signatory Member is not the sole owner of an asset or property or to the extent that an asset or property is used in part for the above described purposes, only the Signatory Member’s ownership interest in such asset or property or only the part of the asset or property used for electric purposes shall be considered to be part of its Electric System. “Electric System” means, with respect to BART, all properties and assets, real and personal, tangible and intangible, of BART now or hereafter existing, used or pertaining to the operation or maintenance of its transportation system, including all additions, extensions, expansions, improvements and betterments thereto and equipment thereof; provided, however, that to the extent BART is not the sole owner of an asset or property or to the extent that an asset or property is used in part for the above described purposes, only BART’s ownership interest in such asset or property or only the part of the asset or property used for transportation system purposes shall be considered to be part of its Electric System. “Event of Default” shall have the meaning provided in Section 12.1. “Fiscal Year” means the NCPA fiscal year; currently the twelve month period beginning July 1 and ending on the next-following June 30. “General Manager” means the General Manager of NCPA. "Good Utility Practice" means any of the practices, methods and acts engaged in or approved by a significant portion of the electric utility industry during the relevant time period, or any of the practices, methods and acts which, in the exercise of reasonable judgment in light of the facts known at the time the decision was made, could have been expected to accomplish the desired result of the lowest reasonable cost consistent with good business practices, reliability, safety and expedition. Good Utility Practice is not intended to be limited to the optimum practice, method or act to the exclusion of all others, but rather to be acceptable practices, methods, or acts generally accepted in the region and consistently adhered to by the electric utility industry. Page 154 of 858 6 ES-AGY-2016-001 “Governing Board” means with respect to NCPA its Commission, and with respect to each Signatory Member means its city council, board of directors, board of port commissioners, or other duly constituted legislative body having approval authority for contracting and purchasing under the terms of the Constitutive Documents of the Signatory Member. “Joint Powers Agreement” or “JPA” means that certain Amended and Restated Northern California Power Agency Joint Power Agreement dated as of January 1, 2008, as the same may be amended from time to time. “Member” means any member of NCPA or any Associate Member of NCPA. “NCPA” has the meaning set forth in the preamble of this Agreement. “NCPA Procurement Policies” means those policies for the procurement of goods and services adopted by the Commission, as the same may be amended from time to time. “NERC” means the North American Electric Reliability Corporation, or its successor in interest as the national electric reliability organization designated by the Federal Energy Regulatory Commission. “Participating Member” has the meaning set forth in the recitals of this Agreement. “Party” or “Parties” has the meaning set forth in the preamble of this Agreement. “Revenues” means, with respect to each Signatory Member with the exception of the San Francisco Bay Area Rapid Transit District (“BART”), all income, rents, rates, fees, charges, and other moneys derived by the Signatory Member from the ownership or operation of its Electric System, including, without limiting the generality of the foregoing: (a) all income, rents, rates, fees, charges or other moneys derived from the sale, furnishing and supplying of electric capacity and energy and other services, facilities, and commodities sold, furnished, or supplied through the facilities of its Electric System; (b) the earnings on and income derived from the investment of such income, rents, rates, fees, charges or other moneys to the extent that the use of such earnings and income is limited by or pursuant to law to its Electric System; and (c) the proceeds derived by the Signatory Member directly or indirectly from the sale, lease or other disposition of all or a part of the Electric System, but the term Revenues shall not include (i) customers’ deposits or any other deposits subject to refund until such deposits have become the property of the Signatory Member, or (ii) contributions from customers for the payment of costs of construction of facilities to serve them. In regard to BART, “Revenues” means all income, rents, rates, fees, charges, grants, fares or tariffs, subventions and other moneys derived by the BART from its operation including, without limiting the generality of the foregoing, (i) the earnings on and income derived from the investment of such income, rents, rates, fees, charges grants, fares or tariffs, subventions or other moneys, and (ii) the proceeds derived by the BART directly or indirectly from the sale, Page 155 of 858 7 ES-AGY-2016-001 lease or other disposition of all or a part of its assets, but the term Revenues shall not include any moneys derived from sources the use of which is limited by law to expenditures other than BART operating expenses. “Security Account” means an account established by NCPA and funded by Participating Members in accordance with Section 7.2, the funds of which are available for use by NCPA with respect to a particular Confirmation in accordance with the terms and conditions herein and those of the particular Confirmation. “Signatory Member” has the meaning set forth in the preamble hereto. “Support Services” has the meaning set forth in the recitals of this Agreement . “Uncontrollable Force” means any act of God, labor disturbance, act of the public enemy, war, insurrection, riot, fire, storm, flood, earthquake, explosion, any curtailment, order, regulation or restriction imposed by governmental, military or lawfully established civilian authorities or any other cause beyond the reasonable control of the Party claiming Uncontrollable Force which could not be avoided through the exercise of Good Utility Practice. “Utility Director” means, with respect to each Signatory Member with the exception of the San Francisco Bay Area Rapid Transit District (“BART”), the person having administrative charge of and responsibility for the operation and maintenance of the Electric System of a Signatory Member. In regards to BART, “Utility Director” means the person having administrative charge of and responsibility for the procurement of electrical energy for the operation of the BART transportation system. 1.2 Interpretation of Agreement. As used in this Agreement (including the preamble and recitals hereto), unless in any such case the context requires otherwise: 1.2.1 The terms “herein,” “hereto,” “herewith” and “hereof” are references to this Agreement taken as a whole and not to any particular provision; the term “include,” “includes” or “including” shall mean “including, for example and without limitation;” and references to a “Section,” “subsection,” “clause,” or “Exhibit” shall mean a Section, subsection, clause or Exhibit of this Agreement, as the case may be. 1.2.2 All references to a given agreement, instrument or other document shall be a reference to that agreement, instrument or other document as modified, amended, supplemented and restated through the date as of which such reference is made, and reference to a law, regulation or ordinance includes any amendment or modification thereof. 1.2.3 A reference to a “person” includes any individual, partnership, firm, company, corporation, joint venture, trust, association, government, organization or other entity, in each case whether or not having a separate legal personality and includes its successors and permitted assigns. Page 156 of 858 8 ES-AGY-2016-001 1.2.4 The singular shall include the plural and the masculine shall include the feminine, and vice versa. 1.2.5 All references to a “day” shall refer to a calendar day, unless specified as a Business Day. Section 2. Effectiveness of Agreement; Signature Authority . 2.1 Effective Date as to Signatory Member. Following the approval of this Agreement by the Commission, any Member may become a Signatory Member by providing an executed counterpart of this Agreement to NCPA. This Agreement shall become effective as to a given Signatory Member upon the later of the Effective Date and the date on which an executed copy of this Agreement is provided to NCPA. NCPA shall provide a copy of each executed signature page of a Signatory Member to all other Signatory Members. 2.2 Form of Signature Page; Amendment of Designated Representatives and Not to Exceed Dollar Authority. Each Signatory Member signature page shall be in the form attached hereto as Exhibit “A.” Each signature page shall identify the initial Designated Representatives of the Signatory Member and the monetary not to exceed authority for any individual Confirmations for that Signatory Member. 2.2.1 Any Signatory Member may amend its not to exceed authority at any time (either increasing or decreasing such authorities), by providing thirty (30) days written notice of such change to NCPA accompanied by a resolution of the Governing Board of the Signatory Member approving such change in the not to exceed authorities. 2..2.2 Signatory Members shall provide written notice to NCPA upon a change in the identity of either of its Designated Representatives. Section 3. Support Services Procurement. 3.1 Offers to Procure Support Services. NCPA may, from time to time in its sole discretion, offer to procure one or more Support Services for the Signatory Members. Signatory Members desiring to accept such offer with respect to a particular Support Service shall execute a Confirmation prepared by NCPA for that Support Service and thereby become a Participating Member with respect to such Confirmation and Support Service. Confirmations shall be in substantially the form attached hereto as Exhibit “B,” and as provided in Section 5. Each such Confirmation shall indicate that the particular Support Service will be accomplished by NCPA contracting with a named third party to provide the Support Service, which contract shall thereafter be entered into by NCPA in accordance with the NCPA Procurement Policies. NCPA’s Designated Representatives shall have the authority to execute Confirmations without the further approval of the Commission where the underlying contract with a third party is within the contracting authority of the General Manager as established by the NCPA Procurement Policies. Provided, however, that NCPA may in its sole discretion choose to self- Page 157 of 858 9 ES-AGY-2016-001 provide the Support Services, rather than contracting with a third party, where it is providing training, human resources assistance, assistance with NERC or other regulatory compliance, or assistance in the form of student interns to the Signatory Members. 3.2 NCPA Procurement of Support Services. NCPA agrees, upon receipt of a Confirmation executed by the Designated Representatives of one (1) or more Participating Members, to procure the Support Service specified in such Confirmation on behalf of the Participating Member(s). Provided, however, that NCPA may in its discretion decline to provide Support Services unless the number of Participating Members and the extent of participation is acceptable to NCPA. 3.3 NCPA Payment of Costs. NCPA shall pay all Costs incurred in providing Support Services under a particular Confirmation using funds: (a) received from Participating Members during the normal course of monthly billing of Members, with the Costs of each Confirmation itemized on the NCPA All Resources Bill; or (b) as necessary from Security Account funds for that Confirmation, if any, paid to NCPA in accordance with Section 7.2; or (c) such other sources and methods as may be agreed upon in writing by the Parties from time to time or as specified in a particular Confirmation. Section 4. No Purchase of Energy or Natural Gas; Other Exclusions. Support Services do not include the purchase of natural gas, energy, or any attributes of energy including capacity, reliability or environmental attributes (such as credits, benefits, emissions reductions, offsets, and allowances, however titled). This Agreement and associated Confirmations shall not be utilized for the procurement of natural gas, energy, or any attributes of energy. NCPA shall continue to buy and sell natural gas and energy, or its attributes, on behalf of its Members through other existing agreements, including the Gas Purchase Program Agreement, the Market Purchase Program Agreement, Single Member Service Agreements and the Pooling Agreement. Support Services do not include those items referred to in Recital C. Section 5. Format of Confirmations; Dollar Not to Exceed Limitations; Amendments. 5.1 Format of Confirmations. Confirmations shall generally be in substantially the form provided by Exhibit “B. Confirmations shall define the scope of the particular Support Service to be provided, the means by which NCPA will procure such Support Service, and any other terms on which such Support Services shall be provided, to the extent such terms are not defined by this Agreement. 5.1. The Confirmation shall identify the third party who will provide the Support Services and incorporate by reference the agreement between the third party and NCPA. 5.1.2 Confirmations shall not amend the terms of this Agreement. In the event NCPA and the Participating Members desire to include a provision in a Confirmation inconsistent with this Agreement, such Confirmation shall be effective only if approved by the Governing Boards of all Participating Members and the Commission. Page 158 of 858 10 ES-AGY-2016-001 5.2 Dollar Not to Exceed Limitations of Confirmations. Each Confirmation shall include a “not to exceed” amount or dollar limitation, broken down by Participating Member, indicating the maximum amount that each Participating Member shall be required to pay for the Support Services provided under the Confirmation. The “not to exceed” shall not relieve a Participating Member of its obligations under this Agreement, including Sections 7 and 11 hereof. 5.2.1 Except as provided in sections 7.4 (relating to use of Security Accounts) and 7.5 (relating to emergency additions to Security Accounts), no Participating Member shall be required to pay for Costs incurred in excess of its stated limitation on a given Confirmation, unless agreed to by the Participating Members. 5.2.2 Any Participating Member may amend its “not to exceed” amount or dollar limitation for a given Confirmation by providing written notice of the change to NCPA executed by its Designated Representatives. 5.3 Amendment of Confirmations. A Confirmation may be amended with respect to all Participating Members only in writing executed by the signatures of the Designated Representatives of NCPA and the Participating Members. Amendments relating to the “not to exceed” amount or dollar limitation of one or more Participating Members shall be accomplished as provided in subsection 5.2.2. Section 6. Participating Member Authority to Execute Confirmations. Each Participating Member acknowledges and agrees to be bound by their respective Designated Representatives’ execution of Confirmations without further approval by the Governing Board of the Participating Member or other approvals, and agrees that such execution is in accordance with its Constitutive Documents. Section 7. Payment Obligations; Confirmation Security Account; Invoicing. 7.1 Payment Obligations. Each Signatory Member agrees to pay NCPA each month its share of Costs specific to each Confirmation for which the Signatory Member is a Participating Member. Such amounts shall be included by NCPA on the monthly All Resources Bill for each Signatory Member, except to the extent that a given Confirmation provides for a different invoicing mechanism and NCPA agrees thereto. 7.2 Confirmation Security Accounts. 7.2.1 Upon issuance of any Confirmation, NCPA shall determine whether or not a Participating Member deposit to a Security Account for that Confirmation will be required in order to provide the Support Service in question. If so, the amount of the required Security Account deposit shall be Page 159 of 858 11 ES-AGY-2016-001 noted on the Confirmation and the Participating Member or Members shall make the required deposits prior to provision of any Support Services pursuant to that Confirmation. Within ten days of NCPA’s notice of the amount of the Security Account deposit, the affected Participating Member shall have the option of withdrawing its Confirmation and not receiving the Support Service requested therein. 7.2.2 Periodically, and at least quarterly, NCPA shall review and revise its determination of the security necessary for a particular Confirmation and whether each Participating Member has a sufficient balance in the Security Account for that Confirmation. To the extent that any Participating Member’s balance in the Security Account for the Confirmation is greater than one hundred and ten percent (110%) of the amount required, NCPA shall credit the difference between the balance and the amount required as soon as practicable to the Participating Member’s next following All Resource Bill. To the extent that any Participating Member’s balance in the Security Account for the Confirmation is less than ninety percent (90%) of the amount required, NCPA shall add the difference between the balance and the ninety percent (90%) as soon as practicable to the Participating Member’s next following All Resource Bill, or as necessary, to a special invoice to the Participating Member. 7.3 Security Account in Addition to Other Security Accounts. Any required deposits into a Security Account for a Confirmation pursuant to this Agreement shall be separate from, and in addition to, any security accounts maintained pursuant to other agreements between NCPA and its Members, including but not limited to the Market Purchase Program Agreement, Single Member Services Agreement and the Gas Purchase Program Agreement. Each Security Account for a Confirmation shall be separate from, and in addition to, any Security Account for a different Confirmation. 7.4 Use of Security Account Funds. Security Account funds shall be segregated by Confirmation. NCPA may use any and all funds deposited into the Security Account for a particular Confirmation to pay any Costs it incurs in providing Support Services pursuant to that Confirmation, including making payments to counterparties under any agreement, or for termination payments, requests for assurances by third parties, credit support, payment of claims and related expenses under a Confirmation. Such use shall be without regard to any individual Participating Member’s balance in the Security Account or its proportionate share of Confirmation Costs and irrespective of whether NCPA has issued an All Resources Bill or invoice for such Costs to the Participating Members or whether a Participating Member has made timely payments of All Resources Bills or invoices. If funds deposited into the Security Account are used by NCPA to pay any Costs it incurs with respect to a particular Confirmation, NCPA will maintain a detailed accounting of each Participating Member’s shares of funds withdrawn from the Security Account or letter of credit, and upon the collection of all or a part of such withdrawn funds from the applicable Participating Member or Members, NCPA will credit back to each Participating Member the Page 160 of 858 12 ES-AGY-2016-001 funds collected in proportion to such non-defaulting Participating Member’s share of funds withdrawn from the Security Account. Funds deposited into a Security Account for a particular Confirmation shall not be used to pay the Costs incurred pursuant to a different Confirmation, nor shall any funds in other security accounts maintained by NCPA and not established pursuant to this Agreement be used. 7.5. Emergency Additions. In the event that the funds are withdrawn pursuant to Section 7.4 of this Agreement, or if the Security Account for a particular Confirmation is insufficient to allow payment of an invoice, demand, request for further assurances or claims by third parties with respect to a particular Confirmation, NCPA shall notify all Participating Members for that Confirmation and then prepare and send a special or emergency assessment to the Participating Members. Each Participating Member shall pay to NCPA such assessment when and if assessed by NCPA within ten (10) days of the invoice date of the assessment. NCPA shall maintain a detailed accounting of each Participating Member’s deposits into and shares of withdrawals from the Security Account for the particular Confirmation. 7.6 Interest on Security Accounts. Monies on deposit in the Security Accounts created pursuant to this Agreement shall be invested by NCPA in accordance with the investment policy adopted by the NCPA Commission. Interest earned (or losses sustained) on the Security Accounts shall be proportionately credited to the Participating Members in accordance with each Participating Member’s Security Account obligations. 7.7 Return of Funds in Security Accounts. Upon the completion of the provision of Support Services under a particular Confirmation, or upon a permitted withdrawal of a Participating Member from a Confirmation, NCPA shall return the share of affected Security Account funds within ninety (90) days. Provided, however, that NCPA shall, in its sole discretion, as determined by the General Manager, estimate the then outstanding liabilities of the Participating Members including any estimated contingent liabilities and shall retain all such funds until all such liabilities have been fully paid or otherwise satisfied in full. Section 8. Invoicing. 8.1 Invoices. As part of the All Resources Bill or by separate special invoice, as required in the circumstances, NCPA will issue an invoice to each Signatory Member for the fixed Support Services Program Agreement Costs as provided in Section 7.1 and its proportionate share of the Costs of any Confirmation as to which it is a Participating Member. 8.2 Payment of Invoices. All non-emergency invoices delivered by NCPA in the normal course of billing hereunder (including the All Resources Bill) are due and payable on the date indicated on such invoice, but in any event no later than thirty (30) days following receipt thereof; provided, however, that any amount due on a day other than a Business Day may be paid on the following Business Day. NCPA may apply a Participating Member’s share of an applicable Security Account to the payment of all or any portion of an invoice issued to such Participating Member , provided that application of such funds from a Security Account relating Page 161 of 858 13 ES-AGY-2016-001 to a particular Confirmation shall not relieve the Participating Member from any late payment charges pursuant to Section 8.3. To the extent that NCPA applies funds from the Security Account to pay an amount due under an invoice, following receipt of payment of such invoice by the relevant Participating Member, NCPA shall deposit the relevant portion of the payment into the Security Account and credit such deposit to such Participating Member. Emergency invoices shall be due as indicated in Section 7.5. 8.3 Late Payments. Any amount due and not timely paid by a Signatory Member shall bear interest computed on a daily basis until paid at the lesser of (i) the per annum prime rate (or reference rate) of the Bank of America NT&SA then in effect, plus two percent (2%), or (ii) the maximum rate permitted by law. Section 9. Settlement Data and Examination of Books and Records; Signatory Member Covenants. 9.1 Settlement Data. NCPA will make settlement data available to the Participating Members. Procedures and formats for the provision of such data will be as established by the NCPA Commission from time to time. 9.2 Records. 9.2.1 NCPA Books and Records. NCPA shall maintain any and all ledgers, books of account, invoices, vouchers, cancelled checks and other records or documents evidencing or relating to charges for the Support Services or expenditures or disbursements to the Signatory Members for a minimum of three (3) years, or for any longer period required by law, from the date of their payment. 9.2.2 Examination of Books and Records. Any Signatory Member shall have the right to examine the books and records created and maintained by NCPA pursuant to this Agreement, including but not limited to (a) those required to be kept by Section 9.2.1 and (b) those required by NCPA to be kept by any third party provider of Support Services, at any reasonable, mutually agreed upon time. 9.2.3 Ownership of Records. Except as otherwise provided in a particular Confirmation, all reports, reports, data, maps, models, charts, studies, surveys, photographs, memoranda, plans, studies, specifications, records, files, or any other documents or materials, in electronic or any other form, that NCPA prepares or obtains for a Participating Member pursuant to a Confirmation and that relate to the matters covered hereunder shall be the property of the Participating Member. NCPA hereby agrees to deliver those documents to the Participating Member upon termination of the Confirmation to which they refer. It is understood and agreed that the documents and other materials, including but not limited to those described above, prepared pursuant to this Agreement are prepared specifically for the Participating Member and are not necessarily suitable for any future or other use. Participating Member and NCPA agree that, until final approval by Participating Member, all data, plans, specifications, reports and other documents are confidential and will not be released to third Page 162 of 858 14 ES-AGY-2016-001 parties without prior written consent of the parties to a Confirmation, except as may otherwise be required by applicable law. 9.3 Signatory Member Covenants. Each Signatory Member covenants and agrees: (i) to continue to pay or advance to NCPA, from its Revenues all payments required under this Agreement; (ii) to make payments to NCPA under this Agreement where NCPA has incurred Costs or is obligated to pay a third party with respect to a Confirmation whether or not there is an interruption in, interference with, or reduction or suspension of Support Services provided under this Agreement, such payments not being subject to any reduction, whether by offset or otherwise, and regardless of whether any dispute exists provided such interruption, interference or reduction in Support Services is caused by forces constituting an Act of God and not reasonably contemplated by the Parties; and (iii) to operate its Electric System and the business in connection therewith in an efficient manner and at reasonable cost and to maintain its Electric System in good repair, working order, and condition. Section 10. Administration of Agreement. 10.1 General. The NCPA Commission has sole overall responsibility and authority for the administration of this Agreement. Any acts, decisions or approvals taken, made or sought by NCPA under this Agreement shall be taken, made or sought, as applicable, in accordance with NCPA’s Constitutive Documents. 10.2 Withdrawal of Signatory Member. A Signatory Member may voluntarily withdraw from this Agreement at any time by providing two (2) year’s advance written notice to NCPA and the other Signatory Members. A withdrawing Signatory Member shall reimburse NCPA for any and all Costs resulting from the withdrawal including the legal, accounting and administrative costs of winding up and assuring the complete satisfaction and discharge of the withdrawing Signatory Member’s obligations. A withdrawing Signatory Member will continue to be liable for any Costs or on-going obligations relating to a Confirmation as to which that withdrawing Signatory Member is a Participating Member, and withdrawal from any given Confirmation shall be permitted only in accordance with the terms of the particular Confirmation. A withdrawing Signatory Member shall not be liable for Costs under a Confirmation, subsequent to the effective date of the Signatory Member’s withdrawal and if unrelated to Support Services provided under the Confirmation to that withdrawing Signatory Member. 10.3 Termination of Agreement by NCPA. NCPA may terminate this Agreement at any time upon six (6) month’s written notice to the Signatory Members. Any such termination shall not affect any on-going obligations of NCPA relating to Confirmations then in effect, provided that no additional Confirmations shall be offered to the Signatory Members by NCPA after the six month notice of termination has been provided to them by NCPA. 10.4 Termination by Signatory Members. Upon the occurrence of an Event of Default where NCPA is the Defaulting Party, and following the applicable cure periods, one or more Signatory Members may, without limiting their other rights or remedies available under this Page 163 of 858 15 ES-AGY-2016-001 Agreement, at law or in equity, and without constituting or resulting in a waiver, release or estoppel of any right, action or cause of action the Signatory Members may have against NCPA, terminate this Agreement in whole, subject to the provisions of Section 12.6.4. Termination by one Signatory Member shall not affect the validity of the Agreement as to other Signatory Members. Section 11. Insurance, Defense and Indemnity Obligations 11.1 Limitation of NCPA Liability. Except as otherwise provided in this Section 11, NCPA shall not at any time be liable for any injury or damage occurring to a Participating Member or any other person or property from any cause whatsoever arising out of this Agreement or any Confirmation entered into pursuant to this Agreement. 11.2 Limited Right of Recourse. The provisions of Section 11.1 shall not apply where the injury or damage is to a Participating Member and is caused by the active negligence of NCPA or of any employee, agent or contractor of NCPA, provided, however, that any liability under this subsection is limited to the extent of the actual coverage and coverage limits of the insurance policies described in this Section 11. 11.2.1 Reimbursement of NCPA Deductibles. Notwithstanding Section 11.2 above, the applicable Participating Member agrees to reimburse NCPA, in a timely manner, for all deductibles or and/or self-insured retentions payable by NCPA for any claim, liability, or damage arising out of this Agreement or any Confirmation entered into pursuant to this Agreement. 11.3 Indemnity Obligation of Participating Members. Except as provided in Section 11.2 above, each Participating Member as to the particular Confirmation involved shall, at its sole cost and expense, indemnify and hold harmless NCPA, and its Members, and their respective officers, agents and employees (“Indemnitees”) from and against any and all liability, obligation, damages, penalties, claims, liens, costs, charges, losses and expenses (including reasonable attorneys’ fees), which may be imposed upon, incurred by or be asserted against the Indemnitees arising out of this Agreement or any Confirmation entered into pursuant to this Agreement. 11.4 Defense Obligation of Participating Members. In the event any action or proceeding shall be brought against the Indemnitees by reason of any matter for which the Indemnitees are indemnified hereunder, the Participating Members as to the Confirmation involved shall, upon reasonable prior written notice from any of the Indemnitees, at Participating Member’s sole cost and expense, resist and defend the same with legal counsel mutually selected by Indemnitee and the Participating Member or Members, unless mutual selection of counsel is expressly prohibited by an applicable insurance policy; provided however, that neither Indemnitee nor Participating Member shall admit liability in any such matter or on behalf of the other without express written consent, which consent shall not be unreasonably withheld or delayed, nor enter into any compromise or settlement of any claim for which Indemnitees are indemnified hereunder without prior express written consent. The Participating Page 164 of 858 16 ES-AGY-2016-001 Member’s duty to defend shall begin upon receipt of a written notice identifying with specificity the allegations that give rise to this duty to defend. 11.5. Notice of Claims Required. The Parties shall give each other prompt written notice of the making of any claim or the commencement of any action, suit or other proceeding covered by the provisions of this Section 11. 11.6 NCPA Obligation to Maintain Insurance. During the term of the Agreement and prior to providing Support Services under any Confirmation issued pursuant to this Agreement, NCPA shall maintain, or cause to be maintained, in full force and effect, and at its sole cost and expense, the types and limits of insurance as are annually approved by the governing Commission of NCPA. 11.7 Participating Member Insurance. The Signatory Members acknowledge that there are significant limits on NCPA’s liability under the this section 11 and that upon becoming a Participating Member as to one or more Confirmations, the Participating Member may wish to purchase additional insurance of its own to cover the additional risks and the potential additional liabilities it is assuming under this Agreement and Confirmations entered into pursuant to this Agreement. Each Participating Member will, with respect to any additional insurance it obtains or which is otherwise available to it, cause its insurers to issue an endorsement providing a waiver of subrogation rights as to the Indemnitees. 11.8 Survival of Obligations. The defense and indemnity obligations of this Section 11 shall survive the termination of this Agreement. Section 12. Default and Remedies. 12.1 Events of Default. An Event of Default under this Agreement shall exist upon the occurrence of any one or more of the following by a Party in default of its obligations hereunder (“Defaulting Party”): (i) if any Signatory Member or Participating Member fails to make any payment due hereunder or to provide assurances as required of NCPA under a Confirmation when due hereunder within two (2) Business Days after receipt of notice given by NCPA of such non-payment; or (ii) the failure of a Signatory Member to perform any other covenant or obligation under this Agreement where such failure is not cured within ten (10) calendar days following receipt of a notice from NCPA demanding cure (provided that this shall not apply to any failure to make payments (which is covered by Section 12.1 (i) ); or (iii) if any representation or warranty of a Signatory Member material to the transactions contemplated hereby shall prove to have been incorrect in any material respect when made and the Signatory Member does not cure the facts underlying such incorrect representation or warranty so that the representation or warranty becomes true and Page 165 of 858 17 ES-AGY-2016-001 correct within ten (10) calendar days of the date of receipt of notice from any other Party demanding cure; or (iv) if a Signatory Member is in default or in breach of any of its covenants under any other agreement with NCPA and such default or breach is not cured within the time periods specified in such agreement; or (v) the failure of NCPA to perform any covenant or obligation under this Agreement following a ten (10) calendar day notice to cure by any non-defaulting Signatory Member. 12.2 Cure of an Event of Default. An Event of Default shall be deemed cured only if such default shall be remedied within the time period specified in Section 12.1 above, as may be applicable, after written notice has been sent to the Defaulting Party from NCPA or a non- defaulting Signatory Member specifying the default and demanding that the same be remedied; provided, however, that the failure of a Party to provide such notice shall not be deemed a waiver of such default. 12.3 Participation Rights Of Defaulting Signatory Member. Notwithstanding anything herein to the contrary, upon the occurrence of an Event of Default and until such Event of Default is cured, the Signatory Member that is the Defaulting Party shall not have the right to participate under any additional Confirmations. 12.4 Remedies in the Event of Default. 12.4.1 Remedies of NCPA. Upon the occurrence of an Event of Default where a Signatory Member is the Defaulting Party, without limiting its other rights or remedies available under this Agreement, at law or in equity, and without constituting or resulting in a waiver, release or estoppel of any right, action or cause of action NCPA may have against the Defaulting Party Participant, NCPA may: (i) suspend the provision of Support Services under this Agreement or any Confirmation issued pursuant to this Agreement to such Defaulting Party until the Event of Default is cured; (ii) demand that the Defaulting Party provide further assurances to compel the correction of the default, including the collection of a surcharge, or such other actions as may be necessary to produce Revenues to secure the cure of the Event of Default; and (iii) terminate this Agreement or any Confirmation as to the Defaulting Party, following the expiration of any applicable cure period pursuant to section 12.1, on ten (10) calendar days’ prior written notice to the Defaulting Party. 12.4.2 Remedies of Signatory Members. Upon the occurrence of an Event of Default where NCPA is the Defaulting Party, and following the applicable cure periods pursuant to section 12.1, one or more Signatory Members may, without limiting their other rights or remedies available under this Agreement, at law or in equity, and without constituting or resulting in a waiver, release or estoppel of any right, action or cause of action they may have against NCPA, terminate this Agreement as to themselves and without affecting the validity of the Agreement as to other Signatory Members, subject to the provisions of Section 12.6.4. Page 166 of 858 18 ES-AGY-2016-001 12.5 Special Covenants Regarding Security Accounts. In the event that a Participating Member’s balance in a required Security Account is insufficient to cover all invoices for Costs incurred under this Agreement sent to such Participating Member, then, without limiting NCPA’s other rights or remedies available under this Agreement, at law or in equity, such Participating Member shall cooperate in good faith with NCPA and shall cure the deficit as rapidly as possible, on an emergency basis, taking all such action as is necessary, including, but not limited to, raising rates and charges to its customers to increase its Revenues to replenish its share of the Security Accounts as provided herein, drawing on its cash-on-hand and lines of credit, obtaining further assurances by way of credit support and letters of credit, and taking all such other action as will cure the default with all due haste. 12.6 Effect of Termination or Suspension. 12.6.1 Generally. The suspension or termination of this Agreement will not terminate, waive, or otherwise discharge any ongoing or undischarged contingent liabilities or obligations arising from this Agreement until such obligations are satisfied in full, and all of the Costs incurred by NCPA in connection with such suspension or termination, including reasonable attorney fees, the fees and expenses of other experts, including auditors and accountants, other costs and expenses that NCPA is entitled to recover under this Agreement, and other reasonable and necessary costs associated with any and all of the remedies, are paid in full. 12.6.2 Suspension by NCPA. If performance of all or any portion of this Agreement is suspended by NCPA with respect to a Signatory Member in accordance with Section 12.4.1(i) such Signatory Member shall pay any and all Costs incurred by NCPA as a result of such suspension including reasonable attorney fees, the fees and expenses of other experts, including auditors and accountants, other reasonable and necessary costs associated with such suspension and any portion of the Costs that were not recovered from such Signatory Member as a result of such suspension. 12.6.3 Termination by NCPA. If this Agreement is terminated by NCPA with respect to a Signatory Member in accordance with Section 12.4.1(iii) such Signatory Member shall pay any and all Costs incurred by NCPA as a result of such termination, including reasonable attorney fees, the fees and expenses of other experts, including auditors and accountants, other reasonable and necessary costs associated with such termination and any portion of the Costs that were not, or will not be, recovered from such Signatory as a result of such termination; provided, however, if NCPA terminates this Agreement with respect to the last remaining Signatory Member, then this Agreement shall terminate. 12.6.4 Termination by Signatory Members. If this Agreement is terminated by all Signatory Members in accordance with Section 10.4 , or by unanimous consent of all of the Parties hereto, then the Signatory Members shall pay to NCPA all previously unpaid Costs incurred as of the date of such termination. The Signatory Members shall indemnify NCPA for any costs incurred in connection with such termination, including reasonable attorney fees, fees Page 167 of 858 19 ES-AGY-2016-001 and expenses of other experts, including auditors and accountants and other reasonable and necessary costs. If the Parties are unable to reach agreement as to the foregoing, then the Parties agree to submit the matter to mediation with a mutually agreed upon mediator. If the Parties are still unable to reach agreement following mediation, then the matter shall be submitted to binding arbitration subject to the rules of the American Arbitration Association, the costs of such arbitration being borne equally among the Signatory Members. Section 13. Uncontrollable Forces. 13.1 Uncontrollable Force In General. Obligations of the Parties, other than those to pay money when due, shall be excused for so long as and to the extent that failure to perform such obligations is due to an Uncontrollable Force; provided, however, that if a Party is unable to perform due to an Uncontrollable Force, such Party shall exercise due diligence to remove such inability with reasonable dispatch. Nothing contained in this Agreement shall be construed as requiring a Party to settle any strike, lockout, or labor dispute in which it may be involved, or to accept any permit, certificate, contract, or any other service agreement or authorization necessary for the performance of this Agreement or any Confirmations issued pursuant to this Agreement which contains terms and conditions which a Party determines in its good faith judgment are unduly burdensome or otherwise unacceptable. 13.2 Each Party shall notify the others promptly, by telephone to the other Parties’ operating personnel as applicable and to the parties’ Designated Representatives upon becoming aware of any Uncontrollable Force which may adversely affect the performance under this Agreement or any Confirmation entered into pursuant to this Agreement. A Party shall additionally provide written notice to any affected Parties within 24 hours after providing. Each Party shall notify the others promptly, when an Uncontrollable Force has been remedied or no longer exists. Section 14. Dispute Resolution. 14.1 Informal Dispute Resolution. If any dispute arises between the Parties that cannot be settled after engaging in good faith negotiations, Signatory Members and NCPA agree to resolve the dispute in accordance with the following: 14.1.1 Each Party shall designate a senior management or executive level representative to negotiate any dispute; 14.1.2 The representatives shall attempt, through good faith negotiations, to resolve the dispute by any means within their authority. 14.1.3 If the issue remains unresolved after thirty (30) days of good faith negotiations, despite having used their best efforts to do so, either Party may pursue arbitration pursuant to Section 14.2. Page 168 of 858 20 ES-AGY-2016-001 14.2 Arbitration. In the event that a dispute is unresolved following the informal dispute resolution process established in Section 14.1, either Party may, within sixty (60) days of the termination of such informal dispute resolution process, initiate binding arbitration to resolve such dispute. Disputes shall be arbitrated pursuant to the Commercial Arbitration and Mediation Rules of the American Arbitration Association. The costs of arbitration shall be equally shared by the Parties, and the Parties shall bear their own attorneys’ fees. The arbitrator shall have no authority to amend this Agreement or any Confirmation. 14.3 Claims. This informal resolution process is not intended to nor shall it be construed to, change the time periods for filing a claim or action specified by Government Code § 900, et seq. Section 15. Miscellaneous 15.1 Compliance with Applicable Laws. NCPA and any subcontractors shall comply with all laws applicable to the performance or provision of the Support Services hereunder. 15.2 Other Governmental Regulations. To the extent that this Agreement or any Confirmation entered into pursuant to this Agreement may be funded by fiscal assistance from another governmental entity, NCPA and any subcontractors shall comply with all applicable rules and regulations to which Participating Members are bound by the terms of such fiscal assistance program. 15.3 Licenses and Permits. NCPA represents and warrants to Participating Members that NCPA and its employees, agents, and any subcontractors have all licenses, permits, qualifications, and approvals of whatsoever nature that is legally required to practice their respective professions. NCPA represents and warrants to Participating Members that NCPA and its employees, agents, any subcontractors shall, at their sole cost and expense, keep in effect at all times during the term of this Agreement any licenses, permits, and approvals that are legally required to practice their respective professions. 15.4 Independent Contractor. At all times during the term of this Agreement, NCPA shall be an independent contractor and shall not be an employee of any Participating Member. A Participating Member shall not have the right to control the means by which NCPA accomplishes Support Services rendered pursuant to this Agreement and the Confirmations entered into pursuant to this Agreement. Notwithstanding any other agency, state, local or federal policy, rule, regulation, law, or ordinance to the contrary, NCPA and any of its employees, agents, and subcontractors providing Support Services under this Agreement and the Confirmations entered into pursuant to this Agreement shall not qualify for or become entitled to, and hereby agree to waive any and all claims to, any compensation, benefit, or any incident of employment by any Participating Member, including but not limited to eligibility to enroll in the California Public Employees Retirement System (PERS) as an employee of a Participating Member and entitlement to any contribution to be paid by a Participating Member for employer contributions and/or employee contributions for PERS benefits. Page 169 of 858 21 ES-AGY-2016-001 15.5 Confidentiality. The Parties will keep confidential all confidential or trade secret information made available to them in connection with this Agreement (including all Confirmations entered into pursuant to this Agreement), to the extent possible, consistent with applicable laws, including the California Public Records Act. It shall be the responsibility of the holder of the claim of confidentiality or trade secret to defend at its expense against any request that such information be disclosed. Confidential or trade secret information shall be marked or expressly identified as such. 15.6 Liabilities of Signatory Members. 15.6.1 No Signatory Member shall be liable under this Agreement for the obligations of any Confirmation as to which it is not a Participating Member. Notwithstanding the foregoing, the Parties acknowledge that any debts or obligations entered into by NCPA pursuant to this Agreement not connected with any Confirmation shall be jointly and severally borne by them as Signatory Members , and not by non-Signatory Members of NCPA, pursuant to Article IV, Section 3(b) of the Joint Powers Agreement. 15.6.2 Each Participating Member shall be solely responsible and liable for performance of its own obligations under this Agreement as to those Confirmations under which it has chosen to receive Member Services. The obligation of each Participating Member under a given Confirmation is a several obligation and not a joint obligation with those other Participating Members with respect to a given Confirmation, subject to the authority of NCPA pursuant to section 7 to utilize Security Account funds if necessary for a given Confirmation regardless of the Participating Member which provided such Security Account funds. 15.7 No Consequential Damages. FOR ANY BREACH OF ANY PROVISION OF THIS AGREEMENT FOR WHICH AN EXPRESS REMEDY OR MEASURE OF DAMAGES IS PROVIDED IN THIS AGREEMENT, THE LIABILITY OF THE DEFAULTING PARTY SHALL BE LIMITED AS SET FORTH IN SUCH PROVISION, AND ALL OTHER DAMAGES OR REMEDIES ARE HEREBY WAIVED. IF NO REMEDY OR MEASURE OF DAMAGE IS EXPRESSLY PROVIDED, THE LIABILITY OF THE DEFAULTING PARTY SHALL BE LIMITED TO ACTUAL DAMAGES ONLY AND ALL OTHER DAMAGES AND REMEDIES ARE HEREBY WAIVED. IN NO EVENT SHALL NCPA OR ANY PARTICIPATING OR SIGNATORY OR OTHER MEMBER OR THEIR RESPECTIVE SUCCESSORS, ASSIGNS, REPRESENTATIVES, DIRECTORS, OFFICERS, AGENTS, OR EMPLOYEES BE LIABLE FOR ANY LOST PROFITS, CONSEQUENTIAL, SPECIAL, EXEMPLARY, INDIRECT, PUNITIVE OR INCIDENTAL LOSSES OR DAMAGES, INCLUDING LOSS OF USE, LOSS OF GOODWILL, LOST REVENUES, LOSS OF PROFIT OR LOSS OF CONTRACTS ARISING FROM THIS AGREEMENT OR ANY CONFIRMATION ENTERED INTO PURSUANT TO THIS AGREEMENT EVEN IF SUCH PARTY HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES. EACH SIGNATORY MEMBER EACH HEREBY WAIVES SUCH CLAIMS AND RELEASES EACH OTHER AND EACH OF NCPA AND ITS MEMBERS FROM ANY SUCH LIABILITY. Page 170 of 858 22 ES-AGY-2016-001 The Parties acknowledge that California Civil Code section 1542 provides that: “A general release does not extend to claims which the creditor does not know or suspect to exist in his or her favor at the time of executing the release, which if known by him or her must have materially affected his or her settlement with the debtor.” The Parties waive the provisions of section 1542, or other similar provisions of law, and intend that the waiver and release provided by this section of this Agreement shall be fully enforceable despite its reference to future or unknown claims and its application to future and unknown Confirmations. 15.8 Amendments. Except where this Agreement specifically provides otherwise, this Agreement may be amended only by written instrument executed by the Parties with the same formality as this Agreement. 15.9 Severability. In the event that any of the terms, covenants or conditions of this Agreement or the application of any such term, covenant or condition, including application to any particular Confirmation, shall be held invalid as to any person or circumstance by any court having jurisdiction, all other terms, covenants or conditions of this Agreement and their application shall not be affected thereby, but shall remain in force and effect unless the court holds that such provisions are not severable from all other provisions of this Agreement. 15.10 Governing Law. This Agreement shall be interpreted, governed by, and construed under the laws of the State of California. 15.11 Headings. All indices, titles, subject headings, section titles and similar items are provided for the purpose of convenience and are not intended to be inclusive, definitive, or affect the meaning of the contents of this Agreement or the scope thereof. 15.12 Notices. Any notice, demand or request required or authorized by this Agreement or any Confirmation entered into pursuant to this Agreement, to be given to any Party shall be in writing. They shall either be personally delivered to a Signatory Member’s Designated Representatives and to the Secretary of the Commission or transmitted to the Signatory Member’s Designated Representatives and to the Secretary of the Commission at the addresses shown on the signature pages hereof by U.S. mail, first class postage prepaid. The designation of such address may be changed at any time by written notice given to the Secretary of the Commission who shall thereupon give written notice of such change to each Participant. Notices shall be deemed received upon delivery or three (3) days after mailing. 15.13 Warranty of Authority. Each Party represents and warrants that it has been duly authorized by all requisite approval and action to execute and deliver this Agreement and that this Agreement is a binding, legal, and valid agreement enforceable in accordance with its terms as to that Party. 15.14 Counterparts. This Agreement may be executed in any number of counterparts, and each executed counterpart shall have the same force and effect as an original instrument and as if all the signatories to all of the counterparts had signed the same instrument. Any signature page of this Agreement may be detached from any counterpart of this Agreement without Page 171 of 858 23 ES-AGY-2016-001 impairing the legal effect of any signatures thereon, and may be attached to another counterpart of this Agreement identical in form hereto but having attached to it one or more signature pages. 15.15 No Assignment. Except as otherwise provided in a particular Confirmation, no Signatory Member may assign or otherwise transfer any other rights and obligations under this Agreement without the express written consent of NCPA. 15.16 Venue. In the event that a Party brings any action under this Agreement or any Confirmation issued pursuant to this Agreement, the Parties agree that trial of such action shall be vested exclusively in the state courts of California in the County of Placer or in the United States District Court for the Eastern District of California. 15.17 Attorneys’ Fees. If a Party to this Agreement brings any action, including an action for declaratory relief, to enforce or interpret the provision of this Agreement or any Confirmation issued pursuant to this Agreement, the Parties shall bear their own attorneys’ fees. 15.18 Interpretation. Each Party to this Agreement is sophisticated in the operation of electric utilities, and operates a publicly owned Electric System. Each Party to this Agreement was represented by counsel during the negotiation of this Agreement. Hence, this Agreement and all Confirmations issued pursuant to this Agreement shall be interpreted as being equally drafted by all Parties and without reference to Civil Code Section 1654 requiring interpretation against Parties causing an ambiguity. 15.19 No Third Party Beneficiaries. Except as otherwise provided in a particular Confirmation to the contrary, nothing contained in this Agreement or any Confirmation issued pursuant to this Agreement is intended by the Parties, nor shall any provision of this Agreement or any Confirmation issued pursuant to this Agreement be deemed or construed by the Parties or by any third person, to be for the benefit of any third party, nor shall any third party have any right to enforce any provision of this Agreement or any Confirmation issued pursuant to this Agreement or be entitled to damages for any breach by the Parties of any of the provisions of this Agreement or any Confirmation issued pursuant to this Agreement. 15.20 No Implied Waiver of Breach. The waiver of any breach of a specific provision of this Agreement or any Confirmation does not constitute a waiver of any other breach of that term or any other term of this Agreement or Confirmation. 15.21 Successors and Assigns. The provisions of this Agreement shall inure to the benefit of and shall apply to and bind the successors and assigns of the Parties. 15.22 Conflict of Interest. NCPA shall not employ any Participating Member official or employee to perform Support Services for that Participating Member. No officer or employee of Participating Member shall have any financial interest in this Agreement or any Confirmation entered into pursuant to this Agreement that would violate California Government Code Sections 1090 et seq. Page 172 of 858 Page 173 of 858 25 ES-AGY-2016-001 EXHIBIT “A” NORTHERN CALIFORNIA POWER AGENCY SUPPORT SERVICES PROGRAM AGREEMENT Signatory Member Execution Page The Support Services Program Agreement is hereby approved, executed and joined by the following NCPA Member as a Signatory Member: ____________________________ [Name of NCPA Member Agency] 1. The initial Designated Representatives of the Signatory Member who are jointly authorized to execute Confirmations on behalf of the Signatory Member are: ___________________________ ____________________________ Utility Director General Counsel or City Attorney 2. The Designated Representatives are authorized to jointly execute any given individual Confirmation for Support Services on behalf of the Signatory Member which does not exceed $_____________ . The NCPA Support Services Program Agreement was approved on ______________ __, 20__ by resolution no. ______ of the ____________________ _______________[Name of Governing Body of Signatory Member, e.g., “city council” or “board of directors”]. By:________________________________ [Signature of person executing] Its:________________________________ [Title of person executing] Attest: __________________________ [Signature of Person Attesting to Approval] Its: _______________________ [Title of Person Attesting] Approved as to Form: By: _______________________________ Title: _______________________________ Page 174 of 858 26 ES-AGY-2016-001 EXHIBIT “B” NCPA Services Program Agreement Form of Confirmation: CONFIRMATION UNDER THE NCPA SUPPORT SERVICES PROGRAM AGREEMENT 1. This is a Confirmation pursuant to the Support Services Program Agreement and subject to the terms and conditions of that agreement, except as expressly provided in this Confirmation. All capitalized terms have the meaning given to them in the Support Services Program Agreement. 2. The Participating Members for this Confirmation are: 3. NCPA agrees to provide the following Support Services to the Participating Members: The Support Services will be contracted for by NCPA with ____________ using an agreement in substantially the form attached to this Confirmation. 4. The Participating Members executing this Confirmation agree to pay for the Support Services in the not to exceed amounts specified in this Confirmation and in accordance with the provisions of the Support Services Program Agreement: 5. A Security Account deposit [ is not required for this Confirmation/is required for this Confirmation in the amount of $ ______________ ] Participating Member ____________ NORTHERN CALIFORNIA POWER AGENCY By:__________________________ By its Designated Representatives: ___________________________ Randy S. Howard, General Manager and ___________________________ Attest: ______________________________ Cary Padgett, Assistant Secretary to the Commission Approved as to Form: By: __________________________ 2507645.12 General Counsel Page 175 of 858 Page 176 of 858 Page 177 of 858 Page 178 of 858 Page 179 of 858 Page 180 of 858 Page 181 of 858 Page 182 of 858 EXHIBIT "A" NORTHERN CALIFORNIA POWER AGENCY SUPPORT SERVICES PROGRAM AGREEMENT Signatory Member Execution Page The Support Services Program Agreement is hereby approved, executed and joined by the following NCPA Mernber as a Signatory Member: THE CITY OF LODI CityYanager - Steve Scuer Authorized for Not More Than $20,000 Per Confirmation 2. The Designated Representatives are authorized to jointly execute any given individual Confirmation for Support Services on behalf of the Signatory Member which does not exceed the dollar amounts specified above. The NCPA Support Services Program Agreement was approved on pr t tyL {2, 2016 by Resolution no. 2016- lW-., of the Lodi City Council. ty Dire or - Elizabeth Kirldey Authorized for Not More Than $15,000 Per Confirmation --was S 1. The initial Designated Representatives of the Signatory Member who are jointly autho, -d to execute Confirmations on behalf of the Signatory Member are: City A lorney - Janice D. Magdich [Signature of person executing] [Title of person executing] By: 'anice_DlMagdich Title: City Attorney Page 183 of 858 Page 184 of 858 Page 185 of 858 Page 186 of 858 Page 187 of 858 Page 188 of 858 Page 189 of 858 Page 190 of 858 Page 191 of 858 Attachment 2 RESOLUTION No.__ RESOLUTION OF THE CITY COUNCIL OF THE CITY OF UKIAH APPROVING THE SUPPORT SERVICES PROGRAM AGREEMENT WITH THE NORTHERN CALIFORNIA POWER AGENCY WHEREAS, the City of Ukiah is a member of the Northern California Power Agency (NCPA), a joint action agency providing members with opportunities for joint generating, transmission and other projects, as well as other supporting programs such as scheduling and dispatch services and legislative advocacy services to publicly owned utilities throughout Northern California; and WHEREAS, the City of Ukiah is a member of NCPA and currently receives benefit from various projects and programs offered at NCPA; and WHEREAS, NCPA has expanded service offerings to its members by offering additional support services such as joint purchasing, engineering services, transmission and distribution planning, power marketing and analysis, employee training, employment and human relations assistance, customer services and billing, metering and data management, power plant operations, and other forms of assistance and professional services relating to the operation of a publicly owned electric utility, as related to either the generation, transmission, or distribution of electricity or the wholesale or retail operation of such a utility; and WHEREAS, approval of the attached Support Services Program Agreement (SSPA) between the Northern California Power Agency (NCPA) and the City of Ukiah will provide the opportunity for the City of Ukiah to utilize the benefit of these new services; and WHEREAS, the SSPA provides that Designated Representatives are responsible for committing to individual service offerings on behalf of a member organization and that the governing board of said member delegate authority to bind the City/member to contractually receive and pay for service offerings in writing through a confirmation process; and WHEREAS, Staff recommends that the City Council appoints the City Attorney, City Manager and Electric Utility Director as Designated Representatives under the SSPA and authority to them, together, to execute service confirmations for amounts not to exceed $20,000 per confirmation or such greater amount as may be authorized by City Council action or applicable City ordinance.; NOW, THEREFORE BE IT RESOLVED, that the City of Ukiah Council hereby: 1) Approves the Support Services Agreement between the Northern California Power Agency and the City of Ukiah and authorizes the City Manager or his delegate to execute the agreement; and 2) Appoints the City Attorney, City Manager and Electric Utility Director as Designated Representatives under the SSPA and authority to them, together, to execute service confirmations for amounts not to exceed $20,000 per confirmation or such greater amount as may be authorized by City Council action or applicable City ordinance. PASSED, ADOPTED and APPROVED this 19th day of January, 2022 by the following roll call vote: AYES: NOES: ABSTAIN: ABSENT: ____________________________________ Jim O. Brown, Mayor ____________________________________ Kristine Lawler, City Clerk Page 192 of 858 Page 1 of 1 Agenda Item No: 7.i. MEETING DATE/TIME: 1/19/2022 ITEM NO: 2022-15 AGENDA SUMMARY REPORT SUBJECT: Notification of Purchase Order #47600-02 Issued to Bartley Pump PM, LLC for the Teardown, Inspection, and Rehabilitation of Well #8 in the Amount of $28,689.70. DEPARTMENT:Water Resources PREPARED BY:Sean White, Water Resources Director, Seth Strader, Buyer I PRESENTER:Consent Calendar ATTACHMENTS: 1.Well 8 rehab PO (Attachment 1) Summary: Council will receive notification of Purchase Order #47600-02 issued to Bartley Pump PM, LLC for the teardown, inspection, and rehabilitation of Well #8 in the amount of $28,689.70. Background: Well #8 was designed and constructed to produce approximately 1,100 gallons per minute (gpm). However, Well #8 has never performed to anticipated levels since its construction in 2008. Actual production has ranged from 370-500 gpm. As a result the pump, motor, and Variable Frequency Drive (VFD) have never operated correctly. This mismatch has been the source of premature pump and motor failure in the past. Both the pump and motor recently failed again. Additionally, the reduced capacity of this facility became a significant production limitation during the drought of 2021. Discussion: Staff has been planning on rehabilitating this facility when the existing pump and motor reached the end of its service. With the recent failure of these components, and the possibility of another year of drought, staff has begun rehabilitation prior to the onset of the high-demand season. Purchase Order #47600- 02 was issued to Bartley Pump PM, LLC on December 2, 2021, for the teardown, inspection, and rehabilitation of Well #8 in the amount of $28,689.70. Following rehabilitation of the well casing, a new motor and pump will be installed that will be designed to match post-rehabilitation test results. This will ensure maximum equipment service life, as well as greatly improve energy efficiency. Recommended Action: Receive notification of Purchase Order #47600-02 issued to Bartley Pump PM, LLC for the teardown, inspection, and rehabilitation of Well #8 in the amount of $28,689.70. BUDGET AMENDMENT REQUIRED: No CURRENT BUDGET AMOUNT: 82027111.56120 - $36,059.71 PROPOSED BUDGET AMOUNT: N/A FINANCING SOURCE: Water Fund PREVIOUS CONTRACT/PURCHASE ORDER NO.: PO 47600 COORDINATED WITH: Mary Horger Page 193 of 858 Purchase Order Purchase Order # THIS NUMBER MUST APPEAR ON ALL INVOICES, PACKAGES AND SHIPPING PAPERS. Fiscal Year Date OrderedVendor Phone Number Date RequiredVendor Fax Number Buyer Page of Delivery must be made within doors of specified destination. Item#Description/Part No.Unit Price Extended PriceUOMQty ByBy Purchasing Supervisor PO TotalVENDOR COPY BILL TO V E N D O R SHIP TO CITY OF UKIAHATTN: ACCOUNTS PAYABLE300 SEMINARY AVENUEUKIAH, CA 95482 Freight Method/TermsDelivery Reference Department/Location Sales Tax Rate 2022 1 1 47600-02 BARTLEY PUMP PM, LLC4000 S MOORLAND AVESANTA ROSA CA 95407 CITY OF UKIAH - WTP935 RIVER ROADUKIAH CA 95482 12/02/2021707-584-9191 Mary Horger 7.880N30/FOB UKAIAH WATER PRODUCTION $28,689.70 1 9460.0 DOLL $1.000 $9,460.00PULL PUMP OUT OF WELL #8 AND RUN WELL VIDEO TO SEE THE INTEGRITY OF THE CASING ANDSCREEN. FURTHER RECOMMENDATIONS TOFOLLOW. 2 19229.7 DOLL $1.000 $19,229.70LABOR TO PRE-BRUSH WELL, THEN PERFORM AN AIRSHOCK TO GET PERFORATIONS OPENED ANDCLEANED, THEN SWAB THE SCREENED AREA ANDBAIL BOTTOM CLEAN, AND PERFORM A POSTVIDEO, PER QUOTE DATED 12/27/2021. REF REQ E38897 AS PER QUOTE DATED 12/1/21 SUBJECT TO PREVAILING WAGE ADDENDUM, ATTACHED. MH 1/3/2022: ADDED LINE 2. WILL GO TO COUNCIL TO REPORT. Attachment 1 Page 194 of 858 1 GENERALLY.These Terms and Conditions ofSale(“Terms and Conditions”)apply to all purchases byCityofUkiah.(Referred to as “Buyer”).The supplier ofgoodsandservicesunderthistransactionishereinreferredtoas“Seller”.The goods or service purchasedare referred to as the “Purchase.” 2.TERMS EXCLUSIVE.Buyer will order the goodsorservicesdescribedhereinonlyuponthetermsandconditionscontainedherein.Seller’s acceptance of thisordershalloccureitherthroughcommencementofperformanceunderthisorderoracknowledgmentofthisorder.By accepting this order,Seller waives all terms andconditionscontainedinitsquotation,acknowledgment,invoice or other documents which are different from oradditionaltothosecontainedhereinandallsuchdifferentoradditionaltermsandconditionsshallbenullandvoid.SELLER MAY NOT CHANGE MATERIAL OFMANUFACTURE,SOURCES OF SUPPLY,MANUFACTURING PROCESS OR LOCATION WITHOUTTHE PRIOR WRITTEN CONSENT OF BUYER. 3.INSPECTION.All goods shall be received subjecttoBuyer’s inspection and rejection.Defective goods andgoodsotherwisenotconformingtothisordershallbeheldforSeller’s instruction and at Seller’s risk,and if Seller sodirects,shall be returned at Seller’s expense.No defectivegoodsshallbereplacedwithoutanewpurchaseorder.Payment by Buyer shall not be construed as anacceptanceofgoods.Buyer may return to Seller anynon-defective,excess goods within thirty (30)days ofreceiving them. 4.CHANGES.City may make changes within thegeneralscopeofthisorderindrawingsandspecificationsforspeciallymanufacturedsupplies,place of delivery,method of shipment or packing of the order by givingnoticetoSellerandsubsequentlyconfirmingsuchchangesinwriting.If such changes affect the cost of or the timerequiredforperformanceofthisorder,an equitableadjustmentinthepriceordeliveryorbothmustbemade.No change by Seller is allowed without City’s writtenapproval.Any claim by Seller for an adjustment under thissectionmustbemadeinwritingwithinthirty(30)days fromthedateofreceiptbySellerofnotificationofsuchchangeunlessCitywaivesthisconditioninwriting.Nothing in thissectionexcusesSellerfromproceedingwithperformanceof the order as changed. 5.TERMINATION.City may terminate this order atanytime,either verbally or in writing,with or without cause.Should termination occur,City will pay Seller as fullperformanceuntilsuchterminationtheunitorprorataorderpricefortheperformedandacceptedportionofthePurchase.City may provide written notice of terminationforSeller’s default if Seller refuses or fails to comply withthisorder.If Seller does not cure such failure within areasonabletimeperiod,or fails to perform the Purchasewithinthetimespecified(or allowed by extension),Sellerwill be liable to City for any excess costs incurred by City. 6.TIME EXTENSION.Time is of the essence Citymayextendthetimeforcompletionif,in City’s soledetermination,Seller was delayed because of causesbeyondSeller’s control and without Seller’s fault ornegligence.In the event delay was caused by City,Seller’s sole remedy is limited to recovering money actuallyandnecessarilyexpendedbySellerbecauseofthedelay;there is no right to recover anticipated profit. 7.REMEDIES CUMULATIVE.City’s rights andremediesunderthisorderarenotexclusiveandareinaddition to any rights and remedies provided by law. 8.TITLE.Title to materials and supplies purchasedunderthisorderpassdirectlyfromSellertoCityuponCity’s written acceptance following an actual inspectionand City’s opportunity to reject. 9.PAYMENT.City will pay Seller after receivingacceptableinvoicesformaterialsandsuppliesdeliveredandacceptedorservicesrenderedandaccepted.City willnotpaycartage,shipping,packaging or boxing expensesunless specified in this order. 10.INDEMNIFICATION.Seller agrees to indemnifyandholdharmlessfromandagainstanyclaim,action,damages,costs (including,without limitation,attorney’sfees),injuries,or liability,arising out of the Purchase or theorder,or their performance.Should City be named in anysuit,or should any claim be brought against it by suit orotherwise,whether the same be groundless or not,arisingoutofthePurchaseororder,or their performance,SellerwilldefendCity(at City’s request and with counselsatisfactorytoCity)and indemnify City for any judgmentrenderedagainstitoranysumspaidoutinsettlementorotherwise.For purposes of this section “City”includesCity’s officers,elected officials,and employees.Thisparagraph9willsurviveterminationofthisorder.TherequirementsastothetypesandlimitsofinsurancecoveragetobemaintainedbySeller,and any approval ofsuchinsurancebyCity,are not intended to and will not inanymannerlimitorqualifytheliabilitiesandobligationsotherwiseassumedbySellerpursuanttothisorder,including,without limitation,to the provisions concerningindemnification. 11.WARRANTY.Seller agrees that the Purchase iscoveredbythemostfavorablecommercialwarrantiestheSellergivestoanycustomerforthesameorsubstantiallysimilarsuppliesorservices,or such other more favorablewarrantiesasisspecifiedinthisorder.Warranties will beeffectivenotwithstandinganyinspectionoracceptanceofthe Purchase by City. 12.ASSIGNMENT.City may assign this order.Except as to any payment due under this order,Seller maynotassignorsubcontracttheorderwithoutCity’s writtenapproval.Should City give consent,it will not relieve Sellerfromanyobligationsunderthisorderandanytransfereeorsubcontractor will be considered Seller’s agent. 13.INSURANCE.Seller must provide the insuranceindicated on the face sheet of this order. 14.PERMITS.Seller must procure all necessarypermitsandlicenses,and abide by all federal,state,andlocal laws, for performing this order. 15.INDEPENDENT CONTRACTOR.City and SelleragreethatSellerwillactasanindependentcontractorandwillhavecontrolofallworkandthemannerinwhichitisperformed.Seller will be free to contract for similar servicetobeperformedforotheremployerswhileundercontractwithCity.Seller is not an agent or employee of City and isnotentitledtoparticipateinanypensionplan,insurance,bonus or similar benefits City provides for its employees.Any provision in this order that may appear to give City therighttodirectSellerastothedetailsofdoingtheworkortoexerciseameasureofcontrolovertheworkmeanstheSellerwillfollowthedirectionoftheCityastoendresultsof the work only. 16.WAIVER.City’s review or acceptance of,orpaymentfor,work product prepared by Seller under thisorderwillnotbeconstruedtooperateasawaiverofanyrightsCitymayhaveunderthisAgreementorofanycauseofactionarisingfromSeller’s performance.A waiver byCityofanybreachofanyterm,covenant,or conditioncontainedinthisorderwillnotbedeemedtobeawaiverofanysubsequentbreachofthesameoranyotherterm,covenant,or condition contained in this order,whether ofthe same or different character. 17.INTERPRETATION.This Agreement was draftedin,and will be construed in accordance with the laws of theStateofCalifornia,and exclusive venue for any actioninvolving this agreement will be in Mendocino County. Page 195 of 858 Page 1 of 2 Agenda Item No: 7.i. MEETING DATE/TIME: 1/19/2022 ITEM NO: 2022-23 AGENDA SUMMARY REPORT SUBJECT: Authorize City Manager to Sign Airport Rescue Grant Offer, Grant No. 3-06-0268-021-2022 for Ukiah Municipal Airport in the Amount of $32,000, and Approve Corresponding Budget Amendment(s). DEPARTMENT: Airport PREPARED BY: Greg Owen, Airport Manager PRESENTER: Greg Owen, Airport Manager ATTACHMENTS: 1. Grant Agreement Summary: Council will consider authorizing the City Manager to sign a Federal Aviation Administration Airport Rescue Grant Offer, Grant No. 3-06-0268-021-2022 for the Ukiah Municipal Airport for the amount of $32,000, and approval of corresponding budget amendment(s). These funds will be used to support the airport's operating budget. Background: Staff has submitted to the FAA an Airport Rescue Grant Application dated November 18, 2021, for a grant of Federal funds. The purpose of this Airport Rescue Grant is to provide eligible sponsors with funding for costs related to operations, personnel, cleaning, sanitization, janitorial services, combating the spread of pathogens at the airport, and debt service payments. Discussion: This Airport Rescue Grant "Attachment 1 Grant Agreement" is provided in accordance with the American Rescue Plan Act ( “ARP Act”, or “the Act”), Public Law 117-2, as described below, to provide eligible Sponsors with funding for costs related to operations, personnel, cleaning, sanitization, janitorial services, combating the spread of pathogens at the airport, and debt service payments. Airport Rescue Grant amounts to specific airports are derived by legislative formula (See Section 7102 of the Act). The purpose of this Airport Rescue Grant is to prevent, prepare for, and respond to the coronavirus pandemic. Funds provided under this Airport Rescue Grant Agreement must be used only for purposes directly related to the airport. Such purposes can include the reimbursement of an airport’s operational expenses or debt service payments in accordance with the limitations prescribed in the Act. Grant No. 3-06-0268-021-2022 Airport Rescue Grants may be used to reimburse airport operational expenses directly related to Ukiah Municipal incurred no earlier than January 20, 2020. Airport Rescue Grants also may be used to reimburse a Sponsor’s payment of debt service where such payments occur on or after March 11, 2021. Funds provided under this Airport Rescue Grant Agreement will be governed by the same principles that govern “airport revenue.” New airport development projects not directly related to combating the spread of pathogens may not be funded with this Grant Funding under this Grant for airport development projects to combat the spread of pathogens will be reallocated using an addendum to this Agreement for identified and approved projects. Recommended Action: Authorize City Manager to sign Airport Rescue Grant Offer, Grant No. 3-06-0268- 021-2022 for Ukiah Municipal Airport in the amount of $32,000, and approve corresponding budget amendment{s}. BUDGET AMENDMENT REQUIRED: Yes CURRENT BUDGET AMOUNT: 77700000.43290.18270: $0 Page 196 of 858 Page 2 of 2 PROPOSED BUDGET AMOUNT: 77700000.43290.18270: $32,000 FINANCING SOURCE: FAA PREVIOUS CONTRACT/PURCHASE ORDER NO.: N/A COORDINATED WITH: Page 197 of 858 3-06-0268-021-2022 1 U.S. Department of Transportation Federal Aviation Administration Airports Division Western-Pacific Region California FAA SFO ADO 1000 Marina Boulevard Suite 115 Brisbane, CA 94005 Airport Rescue Grant Transmittal Letter {{DateTime_es_:signer1:calc(now()):format(date," mmmm d, yyyy")}} Mr. Greg Owen Airport Manager City of Ukiah 1403 S. State Street Ukiah, CA 95482 Dear Mr. Owen: Please find the following electronic Airport Rescue Grant Offer, Grant No. 3-06-0268-021-2022 for Ukiah Municipal Airport. This letter outlines expectations for success. Please read and follow the instructions carefully. To properly enter into this agreement, you must do the following: a.The governing body must provide authority to execute the grant to the individual signing the grant; i.e. the sponsor’s authorized representative. b.The sponsor’s authorized representative must execute the grant, followed by the attorney’s certification, no later than January 24, 2022 in order for the grant to be valid. c.You may not make any modification to the text, terms or conditions of the grant offer. d.The grant offer must be digitally signed by the sponsor’s legal signatory authority and then routed via email to the sponsor’s attorney. Once the attorney has digitally attested to the grant, an email with the executed grant will be sent to all parties. Subject to the requirements in 2 CFR §200.305, each payment request for reimbursement under this grant must be made electronically via the Delphi eInvoicing System. Please see the attached Grant Agreement for more information regarding the use of this System. The terms and conditions of this agreement require you draw down and expend these funds within four years. An airport sponsor may use these funds for costs related to operations, personnel, cleaning, sanitization, janitorial services, combating the spread of pathogens at the airport, and debt service payments. Please refer to the Airport Rescue Grants Frequently Asked Questions for further information. With each payment request you are required to upload an invoice summary directly to Delphi. The invoice summary should include enough detail to permit FAA to verify compliance with the American Rescue Plan Act (Public Law 117-2). Additional details or invoices may be requested by FAA during the review of your payment requests. As part of your final payment request, you are required to include in Delphi: A signed SF-425, Federal Financial Report A signed closeout report (a sample report is available here). January 10, 2022 Attachment 1 Page 198 of 858 3-06-0268-021-2022 2 Until the grant is completed and closed, you are responsible for submitting a signed and dated SF-425 annually, due 90 days after the end of each Federal fiscal year in which this grant is open (due December 31 of each year this grant is open). As a condition of receiving Federal assistance under this award, you must comply with audit requirements as established under 2 CFR part 200. Subpart F requires non-Federal entities that expend $750,000 or more in Federal awards to conduct a single or program specific audit for that year. Note that this includes Federal expenditures made under other Federal-assistance programs. Please take appropriate and necessary action to assure your organization will comply with applicable audit requirements and standards. I am readily available to assist you and your designated representative with the requirements stated herein. The FAA sincerely values your cooperation in these efforts. Sincerely, {{Sig_es_:signer1: signature}} Laurie J. Suttmeier Manager Amy Choi for Laurie Suttmeier (Jan 10, 2022 10:06 PST) Amy Choi for Laurie Suttmeier Page 199 of 858 3-06-0268-021-2022 3 U.S. Department of Transportation Federal Aviation Administration AIRPORT RESCUE GRANT GRANT AGREEMENT Part I - Offer Federal Award Offer Date {{DateTime_es_:signer1:calc(now()):format(date," mmmm d, yyyy")}} Airport/Planning Area Ukiah Municipal Airport Airport Rescue Grant No. 3-06-0268-021-2022 Unique Entity Identifier 152110466 TO: City of Ukiah (herein called the "Sponsor") FROM: The United States of America (acting through the Federal Aviation Administration, herein called the “FAA”) WHEREAS, the Sponsor has submitted to the FAA an Airport Rescue Grant Application dated November 18, 2021, for a grant of Federal funds at or associated with the Ukiah Municipal Airport, which is included as part of this Airport Rescue Grant Agreement; WHEREAS, the Sponsor has accepted the terms of FAA’s Airport Rescue Grant offer; WHEREAS, in consideration of the promises, representations and assurances provided by the Sponsor, the FAA has approved the Airport Rescue Grant Application for the Ukiah Municipal Airport, (herein called the “Grant” or “Airport Rescue Grant”) consisting of the following: WHEREAS, this Airport Rescue Grant is provided in accordance with the American Rescue Plan Act ( “ARP Act”, or “the Act”), Public Law 117-2, as described below, to provide eligible Sponsors with funding for costs related to operations, personnel, cleaning, sanitization, janitorial services, combating the spread of pathogens at the airport, and debt service payments. Airport Rescue Grant amounts to specific airports are derived by legislative formula (See Section 7102 of the Act). WHEREAS, the purpose of this Airport Rescue Grant is to prevent, prepare for, and respond to the coronavirus pandemic. Funds provided under this Airport Rescue Grant Agreement must be used only for purposes directly related to the airport. Such purposes can include the reimbursement of an airport’s operational expenses or debt service payments in accordance with the limitations prescribed in the Act. January 10, 2022 Page 200 of 858 3-06-0268-021-2022 4 Airport Rescue Grants may be used to reimburse airport operational expenses directly related to Ukiah Municipal incurred no earlier than January 20, 2020. Airport Rescue Grants also may be used to reimburse a Sponsor’s payment of debt service where such payments occur on or after March 11, 2021. Funds provided under this Airport Rescue Grant Agreement will be governed by the same principles that govern “airport revenue.” New airport development projects not directly related to combating the spread of pathogens may not be funded with this Grant. Funding under this Grant for airport development projects to combat the spread of pathogens will be reallocated using an addendum to this Agreement for identified and approved projects. NOW THEREFORE, in accordance with the applicable provisions of the ARP Act, Public Law 117-2, the representations contained in the Grant Application, and in consideration of (a) the Sponsor’s acceptance of this Offer; and, (b) the benefits to accrue to the United States and the public from the accomplishment of the Grant and in compliance with the conditions as herein provided, THE FEDERAL AVIATION ADMINISTRATION, FOR AND ON BEHALF OF THE UNITED STATES, HEREBY OFFERS AND AGREES to pay 100% percent of the allowable costs incurred as a result of and in accordance with this Grant Agreement. Assistance Listings Number (Formerly CFDA Number): 20.106 This Offer is made on and SUBJECT TO THE FOLLOWING TERMS AND CONDITIONS: CONDITIONS 1. Maximum Obligation. The maximum obligation of the United States payable under this Offer is $32,000, allocated as follows: $32,000 ARPA KW2022 2. Grant Performance. This Airport Rescue Grant Agreement is subject to the following Federal award requirements: a. The Period of Performance: 1. Shall start on the date the Sponsor formally accepts this agreement, and is the date signed by the last Sponsor signatory to the agreement. The end date of the period of performance is 4 years (1,460 calendar days) from the date of acceptance. The period of performance end date shall not affect, relieve, or reduce Sponsor obligations and assurances that extend beyond the closeout of this Grant Agreement. 2. Means the total estimated time interval between the start of an initial Federal award and the planned end date, which may include one or more funded portions, or budget periods. (2 Code of Federal Regulations (CFR) § 200.1) b. The Budget Period: 1. For this Airport Rescue Grant is 4 years (1,460 calendar days). Pursuant to 2 CFR § 200.403(h), the Sponsor may charge to the Grant only allowable costs incurred during the budget period. 2. Means the time interval from the start date of a funded portion of an award to the end date of that funded portion during which the Sponsor is authorized to expend the funds awarded, including any funds carried forward or other revisions pursuant to § 200.308. c. Close out and Termination. Page 201 of 858 3-06-0268-021-2022 5 1. Unless the FAA authorizes a written extension, the Sponsor must submit all Grant closeout documentation and liquidate (pay-off) all obligations incurred under this award no later than 120 calendar days after the end date of the period of performance. If the Sponsor does not submit all required closeout documentation within this time period, the FAA will proceed to close out the Grant within one year of the period of performance end date with the information available at the end of 120 days. (2 CFR § 200.344) 2. The FAA may terminate this Airport Rescue Grant, in whole or in part, in accordance with the conditions set forth in 2 CFR § 200.340, or other Federal regulatory or statutory authorities as applicable. 3. Unallowable Costs. The Sponsor shall not seek reimbursement for any costs that the FAA has determined to be unallowable under the ARP Act. 4. Indirect Costs - Sponsor. The Sponsor may charge indirect costs under this award by applying the indirect cost rate identified in the Grant Application as accepted by the FAA, to allowable costs for Sponsor direct salaries and wages only. 5. Final Federal Share of Costs. The United States’ share of allowable Grant costs is 100%. 6. Completing the Grant without Delay and in Conformance with Requirements. The Sponsor must carry out and complete the Grant without undue delays and in accordance with this Airport Rescue Grant Agreement, the ARP Act, and the regulations, policies, standards, and procedures of the Secretary of Transportation (“Secretary”). Pursuant to 2 CFR § 200.308, the Sponsor agrees to report to the FAA any disengagement from funding eligible expenses under the Grant that exceeds three months or a 25 percent reduction in time devoted to the Grant, and request prior approval from FAA. The report must include a reason for the stoppage. The Sponsor agrees to comply with the attached assurances, which are part of this agreement and any addendum that may be attached hereto at a later date by mutual consent. 7. Amendments or Withdrawals before Grant Acceptance. The FAA reserves the right to amend or withdraw this offer at any time prior to its acceptance by the Sponsor. 8. Offer Expiration Date. This offer will expire and the United States will not be obligated to pay any part of the costs unless this offer has been accepted by the Sponsor on or before January 24, 2022, or such subsequent date as may be prescribed in writing by the FAA. 9. Improper Use of Federal Funds. The Sponsor must take all steps, including litigation if necessary, to recover Federal funds spent fraudulently, wastefully, or in violation of Federal antitrust statutes, or misused in any other manner, including uses that violate this Airport Rescue Grant Agreement, the ARP Act, or other provision of applicable law. For the purposes of this Airport Rescue Grant Agreement, the term “Federal funds” means funds however used or dispersed by the Sponsor that were originally paid pursuant to this or any other Federal grant agreement(s). The Sponsor must return the recovered Federal share, including funds recovered by settlement, order, or judgment, to the Secretary. The Sponsor must furnish to the Secretary, upon request, all documents and records pertaining to the determination of the amount of the Federal share or to any settlement, litigation, negotiation, or other efforts taken to recover such funds. All settlements or other final positions of the Sponsor, in court or otherwise, involving the recovery of such Federal share require advance approval by the Secretary. 10. United States Not Liable for Damage or Injury. The United States is not responsible or liable for damage to property or injury to persons which may arise from, or relate to this Airport Rescue Page 202 of 858 3-06-0268-021-2022 6 Grant Agreement, including, but not limited to, any action taken by a Sponsor related to or arising from, directly or indirectly, this Airport Rescue Grant Agreement. 11. System for Award Management (SAM) Registration and Unique Entity Identifier (UEI). a. Requirement for System for Award Management (SAM): Unless the Sponsor is exempted from this requirement under 2 CFR 25.110, the Sponsor must maintain the currency of its information in SAM until the Sponsor submits the final financial report required under this Grant, or receives the final payment, whichever is later. This requires that the Sponsor review and update the information at least annually after the initial registration and more frequently if required by changes in information or another award term. Additional information about registration procedures may be found at the SAM website (currently at http://www.sam.gov). b. Unique entity identifier (UEI) means a 12-character alpha-numeric value used to identify a specific commercial, nonprofit or governmental entity. A UEI may be obtained from SAM.gov at https://sam.gov/SAM/pages/public/index.jsf. 12. Electronic Grant Payment(s). Unless otherwise directed by the FAA, the Sponsor must make each payment request under this agreement electronically via the Delphi eInvoicing System for Department of Transportation (DOT) Financial Assistance Awardees. 13. Air and Water Quality. The Sponsor is required to comply with all applicable air and water quality standards for all projects in this grant. If the Sponsor fails to comply with this requirement, the FAA may suspend, cancel, or terminate this Agreement. 14. Financial Reporting and Payment Requirements. The Sponsor will comply with all Federal financial reporting requirements and payment requirements, including submittal of timely and accurate reports. 15. Buy American. Unless otherwise approved in advance by the FAA, in accordance with 49 United States Code (U.S.C.) § 50101, the Sponsor will not acquire or permit any contractor or subcontractor to acquire any steel or manufactured goods produced outside the United States to be used for any project for which funds are provided under this grant. The Sponsor will include a provision implementing Buy American in every contract. 16. Audits for Sponsors. PUBLIC SPONSORS. The Sponsor must provide for a Single Audit or program-specific audit in accordance with 2 CFR Part 200. The Sponsor must submit the audit reporting package to the Federal Audit Clearinghouse on the Federal Audit Clearinghouse’s Internet Data Entry System at http://harvester.census.gov/facweb/. Upon request of the FAA, the Sponsor shall provide one copy of the completed audit to the FAA. 17. Suspension or Debarment. When entering into a “covered transaction” as defined by 2 CFR § 180.200, the Sponsor must: a. Verify the non-Federal entity is eligible to participate in this Federal program by: 1. Checking the excluded parties list system (EPLS) as maintained within the System for Award Management (SAM) to determine if the non-Federal entity is excluded or disqualified; or 2. Collecting a certification statement from the non-Federal entity attesting the entity is not excluded or disqualified from participating; or Page 203 of 858 3-06-0268-021-2022 7 3. Adding a clause or condition to covered transactions attesting the individual or firm is not excluded or disqualified from participating. b. Require prime contractors to comply with 2 CFR § 180.330 when entering into lower-tier transactions (e.g., subcontracts). c. Immediately disclose to the FAA whenever the Sponsor (1) learns the Sponsor has entered into a covered transaction with an ineligible entity, or (2) suspends or debars a contractor, person, or entity. 18. Ban on Texting While Driving. a. In accordance with Executive Order 13513, Federal Leadership on Reducing Text Messaging While Driving, October 1, 2009, and DOT Order 3902.10, Text Messaging While Driving, December 30, 2009, the Sponsor is encouraged to: 1. Adopt and enforce workplace safety policies to decrease crashes caused by distracted drivers, including policies to ban text messaging while driving when performing any work for, or on behalf of, the Federal government, including work relating to this Airport Rescue Grant or subgrant funded by this Grant. 2. Conduct workplace safety initiatives in a manner commensurate with the size of the business, such as: A. Establishment of new rules and programs or re-evaluation of existing programs to prohibit text messaging while driving; and B. Education, awareness, and other outreach to employees about the safety risks associated with texting while driving. b. The Sponsor must insert the substance of this clause on banning texting while driving in all subgrants, contracts, and subcontracts funded by this Airport Rescue Grant. 19. Trafficking in Persons. a. You as the recipient, your employees, subrecipients under this Airport Rescue Grant, and subrecipients’ employees may not – 1. Engage in severe forms of trafficking in persons during the period of time that the award is in effect; 2. Procure a commercial sex act during the period of time that the award is in effect; or 3. Use forced labor in the performance of the award or subawards under the Airport Rescue Grant. b. The FAA as the Federal awarding agency may unilaterally terminate this award, without penalty, if you or a subrecipient that is a private entity – 1. Is determined to have violated a prohibition in paragraph a. of this Airport Rescue Grant Agreement term; or 2. Has an employee who is determined by the agency official authorized to terminate the Airport Rescue Grant Agreement to have violated a prohibition in paragraph a. of this Airport Rescue Grant term through conduct that is either – A. Associated with performance under this Airport Rescue Grant; or Page 204 of 858 3-06-0268-021-2022 8 B. Imputed to the subrecipient using the standards and due process for imputing the conduct of an individual to an organization that are provided in 2 CFR Part 180, “OMB Guidelines to Agencies on Government-wide Debarment and Suspension (Nonprocurement),”as implemented by the FAA at 2 CFR Part 1200. c. You must inform us immediately of any information you receive from any source alleging a violation of a prohibition in paragraph a. of this Grant condition during this Airport Rescue Grant Agreement. d. Our right to terminate unilaterally that is described in paragraph a. of this Grant condition: 1. Implements section 106(g) of the Trafficking Victims Protection Act of 2000 (TVPA), as amended (22 U.S.C. § 7104(g)), and 2. Is in addition to all other remedies for noncompliance that are available to the FAA under this Airport Rescue Grant. 20. Employee Protection from Reprisal. a. Prohibition of Reprisals — 1. In accordance with 41 U.S.C. § 4712, an employee of a grantee or subgrantee may not be discharged, demoted, or otherwise discriminated against as a reprisal for disclosing to a person or body described in sub-paragraph (a)(2) of this Grant condition, information that the employee reasonably believes is evidence of: a. Gross mismanagement of a Federal grant; b. Gross waste of Federal funds; c. An abuse of authority relating to implementation or use of Federal funds; d. A substantial and specific danger to public health or safety; or e. A violation of law, rule, or regulation related to a Federal grant. 2. Persons and bodies covered: The persons and bodies to which a disclosure by an employee is covered are as follows: a. A member of Congress or a representative of a committee of Congress; b. An Inspector General; c. The Government Accountability Office; d. A Federal employee responsible for oversight or management of a grant program at the relevant agency; e. A court or grand jury; f. A management official or other employee of the Sponsor, contractor, or subcontractor who has the responsibility to investigate, discover, or address misconduct; or g. An authorized official of the Department of Justice or other law enforcement agency. 3. Submission of Complaint — A person who believes that they have been subjected to a reprisal prohibited by paragraph a. of this Airport Rescue Grant Agreement may submit a complaint regarding the reprisal to the Office of Inspector General (OIG) for the U.S. Department of Transportation. 4. Time Limitation for Submittal of a Complaint — A complaint may not be brought under this subsection more than three years after the date on which the alleged reprisal took place. Page 205 of 858 3-06-0268-021-2022 9 5. Required Actions of the Inspector General — Actions, limitations, and exceptions of the Inspector General’s office are established under 41 U.S.C. § 4712(b). 6. Assumption of Rights to Civil Remedy — Upon receipt of an explanation of a decision not to conduct or continue an investigation by the Office of Inspector General, the person submitting a complaint assumes the right to a civil remedy under 41 U.S.C. § 4712(c). 21. Limitations. Nothing provided herein shall be construed to limit, cancel, annul, or modify the terms of any Federal grant agreement(s), including all terms and assurances related thereto, that have been entered into by the Sponsor and the FAA prior to the date of this Airport Rescue Grant Agreement. 22. Face Coverings Policy. The sponsor agrees to implement a face-covering (mask) policy to combat the spread of pathogens. This policy must include a requirement that all persons wear a mask, in accordance with Centers for Disease Control (CDC) and Transportation Security Administration (TSA) requirements, as applicable, at all times while in all public areas of the airport property, except to the extent exempted under those requirements. This special condition requires the airport sponsor continue to require masks until Executive Order 13998, Promoting COVID-19 Safety in Domestic and International Travel, is no longer effective. SPECIAL CONDITIONS FOR USE OF AIRPORT RESCUE GRANT FUNDS CONDITIONS FOR EQUIPMENT - 1. Equipment or Vehicle Replacement. The Sponsor agrees that when using funds provided by this Grant to replace equipment, the proceeds from the trade-in or sale of such replaced equipment shall be classified and used as airport revenue. 2. Equipment Acquisition. The Sponsor agrees that for any equipment acquired with funds provided by this Grant, such equipment shall be used solely for purposes directly related to combating the spread of pathogens at the airport. 3. Low Emission Systems. The Sponsor agrees that vehicles and equipment acquired with funds provided in this Grant: a. Will be maintained and used at the airport for which they were purchased; and b. Will not be transferred, relocated, or used at another airport without the advance consent of the FAA. The Sponsor further agrees that it will maintain annual records on individual vehicles and equipment, project expenditures, cost effectiveness, and emission reductions. CONDITIONS FOR UTILITIES AND LAND - 4. Utilities Proration. For purposes of computing the United States’ share of the allowable airport operations and maintenance costs, the allowable cost of utilities incurred by the Sponsor to operate and maintain airport(s) included in the Grant must not exceed the percent attributable to the capital or operating costs of the airport. 5. Utility Relocation in Grant. The Sponsor understands and agrees that: a. The United States will not participate in the cost of any utility relocation unless and until the Sponsor has submitted evidence satisfactory to the FAA that the Sponsor is legally responsible for payment of such costs; Page 206 of 858 3-06-0268-021-2022 10 b. FAA participation is limited to those utilities located on-airport or off-airport only where the Sponsor has an easement for the utility; and c. The utilities must serve a purpose directly related to the Airport. Page 207 of 858 3-06-0268-021-2022 11 The Sponsor’s acceptance of this Offer and ratification and adoption of the Airport Rescue Grant Application incorporated herein shall be evidenced by execution of this instrument by the Sponsor. The Offer and Acceptance shall comprise an Airport Rescue Grant Agreement, as provided by the ARP Act, constituting the contractual obligations and rights of the United States and the Sponsor with respect to this Grant. The effective date of this Airport Rescue Grant Agreement is the date of the Sponsor's acceptance of this Offer. Please read the following information: By signing this document, you are agreeing that you have reviewed the following consumer disclosure information and consent to transact business using electronic communications, to receive notices and disclosures electronically, and to utilize electronic signatures in lieu of using paper documents. You are not required to receive notices and disclosures or sign documents electronically. If you prefer not to do so, you may request to receive paper copies and withdraw your consent at any time. Dated {{DateTime_es_:signer1:calc(now()):format(date," mmmm d, yyyy")}} UNITED STATES OF AMERICA FEDERAL AVIATION ADMINISTRATION {{Sig_es_:signer1: signature}} (Signature) {{N_es_:signer1: fullname}} (Typed Name) {{*Ttl_es_:signer1: title}} (Title of FAA Official) Amy Choi for Laurie Suttmeier (Jan 10, 2022 10:06 PST) Amy Choi for Laurie Suttmeier January 10, 2022 Assistant Manager SFO ADO Amy Choi for Laurie Suttmeier Page 208 of 858 3-06-0268-021-2022 12 Part II - Acceptance The Sponsor does hereby ratify and adopt all assurances, statements, representations, warranties, covenants, and agreements contained in the Airport Rescue Grant Application and incorporated materials referred to in the foregoing Offer under Part I of this Airport Rescue Grant Agreement, and does hereby accept this Offer and by such acceptance agrees to comply with all of the terms and conditions in this Offer and in the Airport Rescue Grant Application and all applicable terms and conditions provided for in the ARP Act and other applicable provisions of Federal law. Please read the following information: By signing this document, you are agreeing that you have reviewed the following consumer disclosure information and consent to transact business using electronic communications, to receive notices and disclosures electronically, and to utilize electronic signatures in lieu of using paper documents. You are not required to receive notices and disclosures or sign documents electronically. If you prefer not to do so, you may request to receive paper copies and withdraw your consent at any time. I declare under penalty of perjury that the foregoing is true and correct. 1 Dated {{DateTime_es_:signer2:calc(now()):format(date," mmmm d, yyyy")}} City of Ukiah (Name of Sponsor) {{Sig_es_:signer2: signature}} (Signature of Sponsor’s Designative Official/Representative) By: {{N_es_:signer2: fullname}} (Type Name of Sponsor’s Designative Official/Representative) Title: {{*Ttl_es_:signer2: title}} (Title of Sponsor’s Designative Official/Representative) 1 Knowingly and willfully providing false information to the Federal government is a violation of 18 U.S.C. Section 1001 (False Statements) and could subject you to fines, imprisonment, or both. Page 209 of 858 3-06-0268-021-2022 13 CERTIFICATE OF SPONSOR'S ATTORNEY I, {{N_es_:signer3: fullname}}, acting as Attorney for the Sponsor do hereby certify: That in my opinion the Sponsor is empowered to enter into the foregoing Grant Agreement under the laws of the State of __California__. Further, I have examined the foregoing Grant Agreement and the actions taken by said Sponsor and Sponsor’s official representative has been duly authorized and that the execution thereof is in all respects due and proper and in accordance with the laws of the said State and the ARP Act. The Sponsor understands funding made available under this Grant Agreement may only be used for costs related to operations, personnel, cleaning, sanitization, janitorial services, and combating the spread of pathogens at the airport incurred on or after January 20, 2020, or for debt service payments that are due on or after March 11, 2021. Further, it is my opinion the foregoing Grant Agreement constitutes a legal and binding obligation of the Sponsor in accordance with the terms thereof. Please read the following information: By signing this document, you are agreeing that you have reviewed the following consumer disclosure information and consent to transact business using electronic communications, to receive notices and disclosures electronically, and to utilize electronic signatures in lieu of using paper documents. You are not required to receive notices and disclosures or sign documents electronically. If you prefer not to do so, you may request to receive paper copies and withdraw your consent at any time. Dated at {{DateTime_es_:signer3:calc(now()):format(date," mmmm d, yyyy")}} By: {{Sig_es_:signer3: signature}} (Signature of Sponsor's Attorney) Page 210 of 858 3-06-0268-021-2022 14 AIRPORT RESCUE GRANT ASSURANCES AIRPORT SPONSORS A. General. 1. These Airport Rescue Grant Assurances are required to be submitted as part of the application by sponsors requesting funds under the provisions of the American Rescue Plan Act of 2021 (“ARP Act,” or “the Act”), Public Law 117-2. As used herein, the term “public agency sponsor” means a public agency with control of a public-use airport; the term “private sponsor” means a private owner of a public-use airport; and the term “sponsor” includes both public agency sponsors and private sponsors. 2. Upon acceptance of this Airport Rescue Grant offer by the sponsor, these assurances are incorporated into and become part of this Airport Rescue Grant Agreement. B. Sponsor Certification. The sponsor hereby assures and certifies, with respect to this Airport Rescue Grant that: It will comply with all applicable Federal laws, regulations, executive orders, policies, guidelines, and requirements as they relate to the application, acceptance, and use of Federal funds for this Airport Rescue Grant including but not limited to the following: FEDERAL LEGISLATION a. 49 U.S.C. Chapter 471, as applicable b. Davis-Bacon Act — 40 U.S.C. 276(a), et. seq. c. Federal Fair Labor Standards Act — 29 U.S.C. 201, et. seq. d. Hatch Act — 5 U.S.C. 1501, et. seq.2 e. Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970 Title 42 U.S.C. 4601, et. seq. f. National Historic Preservation Act of 1966 — Section 106 — 16 U.S.C. 470(f). g. Archeological and Historic Preservation Act of 1974 — 16 U.S.C. 469 through 469c. h. Native Americans Grave Repatriation Act — 25 U.S.C. Section 3001, et. seq. i. Clean Air Act, P.L. 90-148, as amended. j. Coastal Zone Management Act, P.L. 93-205, as amended. k. Flood Disaster Protection Act of 1973 — Section 102(a) — 42 U.S.C. 4012a. l. Title 49, U.S.C., Section 303, (formerly known as Section 4(f)). m. Rehabilitation Act of 1973 — 29 U.S.C. 794. n. Title VI of the Civil Rights Act of 1964 (42 U.S.C. § 2000d et seq., 78 stat. 252) (prohibits discrimination on the basis of race, color, national origin). o. Americans with Disabilities Act of 1990, as amended, (42 U.S.C. § 12101 et seq.), prohibits discrimination on the basis of disability). p. Age Discrimination Act of 1975 — 42 U.S.C. 6101, et. seq. Page 211 of 858 3-06-0268-021-2022 15 q. American Indian Religious Freedom Act, P.L. 95-341, as amended. r. Architectural Barriers Act of 1968 — 42 U.S.C. 4151, et. seq. s. Power plant and Industrial Fuel Use Act of 1978 — Section 403- 2 U.S.C. 8373. t. Contract Work Hours and Safety Standards Act — 40 U.S.C. 327, et. seq. u. Copeland Anti-kickback Act — 18 U.S.C. 874.1. v. National Environmental Policy Act of 1969 — 42 U.S.C. 4321, et. seq. w. Wild and Scenic Rivers Act, P.L. 90-542, as amended. x. Single Audit Act of 1984 — 31 U.S.C. 7501, et. seq.2 y. Drug-Free Workplace Act of 1988 — 41 U.S.C. 702 through 706. z. The Federal Funding Accountability and Transparency Act of 2006, as amended (Pub. L. 109-282, as amended by section 6202 of Pub. L. 110-252). EXECUTIVE ORDERS a. Executive Order 11246 – Equal Employment Opportunity b. Executive Order 11990 – Protection of Wetlands c. Executive Order 11998 – Flood Plain Management d. Executive Order 12372 – Intergovernmental Review of Federal Programs e. Executive Order 12699 – Seismic Safety of Federal and Federally Assisted New Building Construction f. Executive Order 12898 – Environmental Justice g. Executive Order 14005 – Ensuring the Future Is Made in All of America by All of America's Workers. FEDERAL REGULATIONS a. 2 CFR Part 180 – OMB Guidelines to Agencies on Governmentwide Debarment and Suspension (Nonprocurement). b. 2 CFR Part 200 – Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards.3, 4 c. 2 CFR Part 1200 – Nonprocurement Suspension and Debarment. d. 28 CFR Part 35 – Discrimination on the Basis of Disability in State and Local Government Services. e. 28 CFR § 50.3 – U.S. Department of Justice Guidelines for Enforcement of Title VI of the Civil Rights Act of 1964. f. 29 CFR Part 1 – Procedures for predetermination of wage rates.1 g. 29 CFR Part 3 – Contractors and subcontractors on public building or public work financed in whole or part by loans or grants from the United States.1 Page 212 of 858 3-06-0268-021-2022 16 h. 29 CFR Part 5 – Labor standards provisions applicable to contracts covering Federally financed and assisted construction (also labor standards provisions applicable to non-construction contracts subject to the Contract Work Hours and Safety Standards Act).1 i. 41 CFR Part 60 – Office of Federal Contract Compliance Programs, Equal Employment Opportunity, Department of Labor (Federal and Federally assisted contracting requirements).1 j. 49 CFR Part 20 – New restrictions on lobbying. k. 49 CFR Part 21 – Nondiscrimination in Federally-assisted programs of the Department of Transportation - effectuation of Title VI of the Civil Rights Act of 1964. l. 49 CFR Part 23 – Participation by Disadvantage Business Enterprise in Airport Concessions. m. 49 CFR Part 26 – Participation by Disadvantaged Business Enterprises in Department of Transportation Program. n. 49 CFR Part 27 – Nondiscrimination on the Basis of Handicap in Programs and Activities Receiving or Benefiting from Federal Financial Assistance.1 o. 49 CFR Part 28 – Enforcement of Nondiscrimination on the Basis of Handicap in Programs or Activities conducted by the Department of Transportation. p. 49 CFR Part 30 – Denial of public works contracts to suppliers of goods and services of countries that deny procurement market access to U.S. contractors. q. 49 CFR Part 32 – Government-wide Requirements for Drug-Free Workplace (Financial Assistance). r. 49 CFR Part 37 – Transportation Services for Individuals with Disabilities (ADA). s. 49 CFR Part 41 – Seismic safety of Federal and Federally assisted or regulated new building construction. FOOTNOTES TO AIRPORT RESCUE GRANT ASSURANCE B 1 These laws do not apply to airport planning sponsors. 2 These laws do not apply to private sponsors. 3 Cost principles established in 2 CFR Part 200 subpart E must be used as guidelines for determining the eligibility of specific types of expenses. 4 Audit requirements established in 2 CFR Part 200 subpart F are the guidelines for audits. SPECIFIC ASSURANCES Specific assurances required to be included in grant agreements by any of the above laws, regulations, or circulars are incorporated by reference in this Grant Agreement. 1. Purpose Directly Related to the Airport It certifies that the reimbursement sought is for a purpose directly related to the airport. 2. Responsibility and Authority of the Sponsor. a. Public Agency Sponsor: It has legal authority to apply for this Grant, and to finance and carry out the proposed grant; that an official decision has been made by the applicant’s governing body authorizing the filing of the application, including all understandings and assurances contained therein, and directing Page 213 of 858 3-06-0268-021-2022 17 and authorizing the person identified as the official representative of the applicant to act in connection with the application and to provide such additional information as may be required. b. Private Sponsor: It has legal authority to apply for this Grant and to finance and carry out the proposed Grant and comply with all terms, conditions, and assurances of this Grant Agreement. It shall designate an official representative and shall in writing direct and authorize that person to file this application, including all understandings and assurances contained therein; to act in connection with this application; and to provide such additional information as may be required. 3. Good Title. It, a public agency or the Federal government, holds good title, satisfactory to the Secretary, to the landing area of the airport or site thereof, or will give assurance satisfactory to the Secretary that good title will be acquired. 4. Preserving Rights and Powers. a. It will not take or permit any action which would operate to deprive it of any of the rights and powers necessary to perform any or all of the terms, conditions, and assurances in this Grant Agreement without the written approval of the Secretary, and will act promptly to acquire, extinguish, or modify any outstanding rights or claims of right of others which would interfere with such performance by the sponsor. This shall be done in a manner acceptable to the Secretary. b. If the sponsor is a private sponsor, it will take steps satisfactory to the Secretary to ensure that the airport will continue to function as a public-use airport in accordance with this Grant Agreement. c. If an arrangement is made for management and operation of the airport by any agency or person other than the sponsor or an employee of the sponsor, the sponsor will reserve sufficient rights and authority to insure that the airport will be operated and maintained in accordance Title 49, United States Code, the regulations, and the terms and conditions of this Grant Agreement. 5. Consistency with Local Plans. Any project undertaken by this Grant Agreement is reasonably consistent with plans (existing at the time of submission of the Airport Rescue Grant application) of public agencies that are authorized by the State in which the project is located to plan for the development of the area surrounding the airport. 6. Consideration of Local Interest. It has given fair consideration to the interest of communities in or near where any project undertaken by this Grant Agreement may be located. 7. Consultation with Users. In making a decision to undertake any airport development project undertaken by this Grant Agreement, it has undertaken reasonable consultations with affected parties using the airport at which project is proposed. Page 214 of 858 3-06-0268-021-2022 18 8. Pavement Preventative Maintenance. With respect to a project undertaken by this Grant Agreement for the replacement or reconstruction of pavement at the airport, it assures or certifies that it has implemented an effective airport pavement maintenance-management program and it assures that it will use such program for the useful life of any pavement constructed, reconstructed, or repaired with Federal financial assistance at the airport, including Airport Rescue Grant funds provided under this Grant Agreement. It will provide such reports on pavement condition and pavement management programs as the Secretary determines may be useful. 9. Accounting System, Audit, and Record Keeping Requirements. a. It shall keep all Grant accounts and records which fully disclose the amount and disposition by the recipient of the proceeds of this Grant, the total cost of the Grant in connection with which this Grant is given or used, and the amount or nature of that portion of the cost of the Grant supplied by other sources, and such other financial records pertinent to the Grant. The accounts and records shall be kept in accordance with an accounting system that will facilitate an effective audit in accordance with the Single Audit Act of 1984. b. It shall make available to the Secretary and the Comptroller General of the United States, or any of their duly authorized representatives, for the purpose of audit and examination, any books, documents, papers, and records of the recipient that are pertinent to this Grant. The Secretary may require that an appropriate audit be conducted by a recipient. In any case in which an independent audit is made of the accounts of a sponsor relating to the disposition of the proceeds of a Grant or relating to the Grant in connection with which this Grant was given or used, it shall file a certified copy of such audit with the Comptroller General of the United States not later than six (6) months following the close of the fiscal year for which the audit was made. 10. Minimum Wage Rates. It shall include, in all contracts in excess of $2,000 for work on the airport funded under this Grant Agreement which involve labor, provisions establishing minimum rates of wages, to be predetermined by the Secretary of Labor, in accordance with the Davis-Bacon Act, as amended (40 U.S.C. 276a-276a-5), which contractors shall pay to skilled and unskilled labor, and such minimum rates shall be stated in the invitation for bids and shall be included in proposals or bids for the work. 11. Veteran's Preference. It shall include in all contracts for work on any airport development project funded under this Grant Agreement which involve labor, such provisions as are necessary to insure that, in the employment of labor (except in executive, administrative, and supervisory positions), preference shall be given to Vietnam-era veterans, Persian Gulf veterans, Afghanistan-Iraq war veterans, disabled veterans, and small business concerns owned and controlled by disabled veterans as defined in Section 47112 of Title 49, United States Code. However, this preference shall apply only where the individuals are available and qualified to perform the work to which the employment relates. 12. Operation and Maintenance. a. The airport and all facilities which are necessary to serve the aeronautical users of the airport, other than facilities owned or controlled by the United States, shall be operated at all times in a safe and serviceable condition and in accordance with the minimum standards as may be required or prescribed by applicable Federal, State and local agencies for maintenance and Page 215 of 858 3-06-0268-021-2022 19 operation. It will not cause or permit any activity or action thereon which would interfere with its use for airport purposes. It will suitably operate and maintain the airport and all facilities thereon or connected therewith, with due regard to climatic and flood conditions. Any proposal to temporarily close the airport for non-aeronautical purposes must first be approved by the Secretary. In furtherance of this assurance, the sponsor will have in effect arrangements for: 1. Operating the airport's aeronautical facilities whenever required; 2. Promptly marking and lighting hazards resulting from airport conditions, including temporary conditions; and 3. Promptly notifying airmen of any condition affecting aeronautical use of the airport. Nothing contained herein shall be construed to require that the airport be operated for aeronautical use during temporary periods when snow, flood or other climatic conditions interfere with such operation and maintenance. Further, nothing herein shall be construed as requiring the maintenance, repair, restoration, or replacement of any structure or facility which is substantially damaged or destroyed due to an act of God or other condition or circumstance beyond the control of the sponsor. b. It will suitably operate and maintain noise compatibility program items that it owns or controls upon which Federal funds have been expended. 13. Hazard Removal and Mitigation. It will take appropriate action to assure that such terminal airspace as is required to protect instrument and visual operations to the airport (including established minimum flight altitudes) will be adequately cleared and protected by removing, lowering, relocating, marking, or lighting or otherwise mitigating existing airport hazards and by preventing the establishment or creation of future airport hazards. 14. Compatible Land Use. It will take appropriate action, to the extent reasonable, including the adoption of zoning laws, to restrict the use of land adjacent to or in the immediate vicinity of the airport to activities and purposes compatible with normal airport operations, including landing and takeoff of aircraft. 15. Exclusive Rights. The sponsor shall not grant an exclusive right to use an air navigation facility on which this Grant has been expended. However, providing services at an airport by only one fixed-based operator is not an exclusive right if— a. it is unreasonably costly, burdensome, or impractical for more than one fixed-based operator to provide the services; and b. allowing more than one fixed-based operator to provide the services requires a reduction in space leased under an agreement existing on September 3, 1982, between the operator and the airport. 16. Airport Revenues. a. This Grant shall be available for any purpose for which airport revenues may lawfully be used to prevent, prepare for, and respond to coronavirus. Funds provided under this Airport Rescue Grant Agreement will only be expended for the capital or operating costs of the airport; the local airport system; or other local facilities which are owned or operated by the owner or operator of the airport(s) subject to this agreement and all applicable addendums for costs Page 216 of 858 3-06-0268-021-2022 20 related to operations, personnel, cleaning, sanitization, janitorial services, combating the spread of pathogens at the airport, and debt service payments as prescribed in the Act. b. For airport development, 49 U.S.C. § 47133 applies. 17. Reports and Inspections. It will: a. submit to the Secretary such annual or special financial and operations reports as the Secretary may reasonably request and make such reports available to the public; make available to the public at reasonable times and places a report of the airport budget in a format prescribed by the Secretary; b. in a format and time prescribed by the Secretary, provide to the Secretary and make available to the public following each of its fiscal years, an annual report listing in detail: 1. all amounts paid by the airport to any other unit of government and the purposes for which each such payment was made; and 2. all services and property provided by the airport to other units of government and the amount of compensation received for provision of each such service and property. 18. Land for Federal Facilities. It will furnish without cost to the Federal Government for use in connection with any air traffic control or air navigation activities, or weather-reporting and communication activities related to air traffic control, any areas of land or water, or estate therein, or rights in buildings of the sponsor as the Secretary considers necessary or desirable for construction, operation, and maintenance at Federal expense of space or facilities for such purposes. Such areas or any portion thereof will be made available as provided herein within four months after receipt of a written request from the Secretary. 19. Airport Layout Plan. a. Subject to the FAA Reauthorization Act of 2018, Public Law 115-254, Section 163, it will keep up to date at all times an airport layout plan of the airport showing: 1. boundaries of the airport and all proposed additions thereto, together with the boundaries of all offsite areas owned or controlled by the sponsor for airport purposes and proposed additions thereto; 2. the location and nature of all existing and proposed airport facilities and structures (such as runways, taxiways, aprons, terminal buildings, hangars and roads), including all proposed extensions and reductions of existing airport facilities; 3. the location of all existing and proposed non-aviation areas and of all existing improvements thereon; and 4. all proposed and existing access points used to taxi aircraft across the airport’s property boundary. Such airport layout plans and each amendment, revision, or modification thereof, shall be subject to the approval of the Secretary which approval shall be evidenced by the signature of a duly authorized representative of the Secretary on the face of the airport layout plan. The sponsor will not make or permit any changes or alterations in the airport or any of its facilities which are not in conformity with the airport layout plan Page 217 of 858 3-06-0268-021-2022 21 as approved by the Secretary and which might, in the opinion of the Secretary, adversely affect the safety, utility or efficiency of the airport. b. Subject to the FAA Reauthorization Act of 2018, Public Law 115-254, Section 163, if a change or alteration in the airport or the facilities is made which the Secretary determines adversely affects the safety, utility, or efficiency of any federally owned, leased, or funded property on or off the airport and which is not in conformity with the airport layout plan as approved by the Secretary, the owner or operator will, if requested, by the Secretary (1) eliminate such adverse effect in a manner approved by the Secretary; or (2) bear all costs of relocating such property (or replacement thereof) to a site acceptable to the Secretary and all costs of restoring such property (or replacement thereof) to the level of safety, utility, efficiency, and cost of operation existing before the unapproved change in the airport or its facilities except in the case of a relocation or replacement of an existing airport facility due to a change in the Secretary’s design standards beyond the control of the airport sponsor. 20. Civil Rights. It will promptly take any measures necessary to ensure that no person in the United States shall, on the grounds of race, creed, color, national origin, sex, age, or disability be excluded from participation in, be denied the benefits of, or be otherwise subjected to discrimination in any activity conducted with, or benefiting from, funds received from this Grant. a. Using the definitions of activity, facility, and program as found and defined in §§ 21.23 (b) and 21.23 (e) of 49 CFR Part 21, the sponsor will facilitate all programs, operate all facilities, or conduct all programs in compliance with all non-discrimination requirements imposed by or pursuant to these assurances. b. Applicability 1. Programs and Activities. If the sponsor has received a grant (or other Federal assistance) for any of the sponsor’s program or activities, these requirements extend to all of the sponsor’s programs and activities. 2. Facilities. Where it receives a grant or other Federal financial assistance to construct, expand, renovate, remodel, alter, or acquire a facility, or part of a facility, the assurance extends to the entire facility and facilities operated in connection therewith. 3. Real Property. Where the sponsor receives a grant or other Federal financial assistance in the form of, or for the acquisition of, real property or an interest in real property, the assurance will extend to rights to space on, over, or under such property. c. Duration The sponsor agrees that it is obligated to this assurance for the period during which Federal financial assistance is extended to the program, except where the Federal financial assistance is to provide, or is in the form of, personal property, or real property, or interest therein, or structures or improvements thereon, in which case the assurance obligates the sponsor, or any transferee for the longer of the following periods: 1. So long as the airport is used as an airport, or for another purpose involving the provision of similar services or benefits; or 2. So long as the sponsor retains ownership or possession of the property. d. Required Solicitation Language Page 218 of 858 3-06-0268-021-2022 22 It will include the following notification in all solicitations for bids, Requests for Proposals for work, or material under this Grant and in all proposals for agreements, including airport concessions, regardless of funding source: “The City of Ukiah, in accordance with the provisions of Title VI of the Civil Rights Act of 1964 (78 Stat. 252, 42 U.S.C. §§ 2000d to 2000d-4) and the Regulations, hereby notifies all bidders that it will affirmatively ensure that for any contract entered into pursuant to this advertisement, disadvantaged business enterprises and airport concession disadvantaged business enterprises will be afforded full and fair opportunity to submit bids in response to this invitation and will not be discriminated against on the grounds of race, color, or national origin in consideration for an award.” e. Required Contract Provisions. 1. It will insert the non-discrimination contract clauses requiring compliance with the acts and regulations relative to non-discrimination in Federally-assisted programs of the DOT, and incorporating the acts and regulations into the contracts by reference in every contract or agreement subject to the non-discrimination in Federally-assisted programs of the DOT Acts and regulations. 2. It will include a list of the pertinent non-discrimination authorities in every contract that is subject to the non-discrimination acts and regulations. 3. It will insert non-discrimination contract clauses as a covenant running with the land, in any deed from the United States effecting or recording a transfer of real property, structures, use, or improvements thereon or interest therein to a sponsor. 4. It will insert non-discrimination contract clauses prohibiting discrimination on the basis of race, color, national origin, creed, sex, age, or handicap as a covenant running with the land, in any future deeds, leases, license, permits, or similar instruments entered into by the sponsor with other parties: A. For the subsequent transfer of real property acquired or improved under the applicable activity, grant, or program; and B. For the construction or use of, or access to, space on, over, or under real property acquired or improved under the applicable activity, grant, or program. C. It will provide for such methods of administration for the program as are found by the Secretary to give reasonable guarantee that it, other recipients, sub-recipients, sub- grantees, contractors, subcontractors, consultants, transferees, successors in interest, and other participants of Federal financial assistance under such program will comply with all requirements imposed or pursuant to the acts, the regulations, and this assurance. D. It agrees that the United States has a right to seek judicial enforcement with regard to any matter arising under the acts, the regulations, and this assurance. 21. Foreign Market Restrictions. It will not allow funds provided under this Grant to be used to fund any activity that uses any product or service of a foreign country during the period in which such foreign country is listed by the United States Trade Representative as denying fair and equitable market opportunities for products and suppliers of the United States in procurement and construction. Page 219 of 858 3-06-0268-021-2022 23 22. Policies, Standards and Specifications. It will carry out any project funded under an Airport Rescue Grant in accordance with policies, standards, and specifications approved by the Secretary including, but not limited to, current FAA Advisory Circulars for AIP projects, as of November 18, 2021. 23. Access By Intercity Buses. The airport owner or operator will permit, to the maximum extent practicable, intercity buses or other modes of transportation to have access to the airport; however, it has no obligation to fund special facilities for intercity buses or for other modes of transportation. 24. Disadvantaged Business Enterprises. The sponsor shall not discriminate on the basis of race, color, national origin or sex in the award and performance of any DOT-assisted contract covered by 49 CFR Part 26, or in the award and performance of any concession activity contract covered by 49 CFR Part 23. In addition, the sponsor shall not discriminate on the basis of race, color, national origin or sex in the administration of its Disadvantaged Business Enterprise (DBE) and Airport Concessions Disadvantaged Business Enterprise (ACDBE) programs or the requirements of 49 CFR Parts 23 and 26. The sponsor shall take all necessary and reasonable steps under 49 CFR Parts 23 and 26 to ensure nondiscrimination in the award and administration of DOT-assisted contracts, and/or concession contracts. The sponsor’s DBE and ACDBE programs, as required by 49 CFR Parts 26 and 23, and as approved by DOT, are incorporated by reference in this agreement. Implementation of these programs is a legal obligation and failure to carry out its terms shall be treated as a violation of this agreement. Upon notification to the sponsor of its failure to carry out its approved program, the Department may impose sanctions as provided for under Parts 26 and 23 and may, in appropriate cases, refer the matter for enforcement under 18 U.S.C. 1001 and/or the Program Fraud Civil Remedies Act of 1936 (31 U.S.C. 3801). 25. Acquisition Thresholds. The FAA deems equipment to mean tangible personal property having a useful life greater than one year and a per-unit acquisition cost equal to or greater than $5,000. Procurements by micro- purchase means the acquisition of goods or services for which the aggregate dollar amount does not exceed $10,000, unless authorized in accordance with 2 CFR § 200.320. Procurement by small purchase procedures means those relatively simple and informal procurement methods for securing goods or services that do not exceed the $250,000 threshold for simplified acquisitions. Page 220 of 858 3-06-0268-021-2022 24 Current FAA Advisory Circulars Required for Use in AIP Funded and PFC Approved Projects View the most current Series 150 Advisory Circulars (ACs) for Airport Projects at http://www.faa.gov/airports/resources/advisory_circulars and http://www.faa.gov/regulations_policies/advisory_circulars 3-06-0268-021-2022 24 24 Page 221 of 858 Page 1 of 2 Agenda Item No: 7.j. MEETING DATE/TIME: 1/19/2022 ITEM NO: 2022-25 AGENDA SUMMARY REPORT SUBJECT: Approve the Purchase of Mobile Data Terminals (MDT) for the Ukiah Valley Fire Authority (UVFA) in the Amount of $173,830.11 for the Initial Three Years, and Approve Corresponding Budget Amendment. DEPARTMENT: Fire PREPARED BY: Eric Singleton, Battalion Chief PRESENTER: Doug Hutchison, Fire Chief ATTACHMENTS: 1. RadioMobile CAL FIRE Case Study 11-2019 2. RadioMobile (SourceWell-Quote) Summary: The Council will consider the purchase of Mobile Data Terminals (MDT's) from RadioMobile for the amount of $173,830.11 and approval of corresponding budget amendment. Background: To maintain safety as a top priority, the Ukiah Valley Fire Authority would like to purchase Mobile Data Terminals(MDT's), which will provide security in multiple ways: • Communications from unit to unit, and unit to dispatch center. • Reduce routine radio traffic (i.e., incident acknowledgment, response, on-scene, clear, etc.,) allowing for additional incident dispatch or priority/pertinent traffic to be relayed. • Provide the location of every unit in the fleet via GPS, Satellite, and Cellular; allowing the closest unit to be sent, which will save valuable time when responding to emergencies, in comparison to the current system that assigns a unit to a zone. • System is also utilized by CalFire • Using GPS & satellites will allow tracking of the units in real-time, giving the ability to better coordinate offensive and defensive fire strategies & tactics. • Internet accessibility, emergency incidents are considered highly dynamic and fluid situations. Providing Staff with the most up-to-date information available to them when faced with situations ranging from Haz-mat, rescues (High/Low angle), confined, water, fire, and medical, will ensure quicker and more efficient responses. • Data includes hundreds of pre-plans and floor plans constructed by the prevention office. See CalFire case study (Attachment 1.) Discussion: This item was built into this year's fiscal budget, with the stipulation of the annexation (District overlay of the City) being approved. The original budgeted amount was reduced, pending the annexation, with detailed notes that reduced budget item amounts are to be considered for restoration if the annexation successfully passed. With the approval of the annexation, the UVFA would like to move forward with the purchase. The total first- year cost for all units and hardware is $120,652.07, including tax and shipping. Years two and three will be an additional $26,589.02 per year to meet Radio Mobile's three-year commitment requirement, resulting in a total amount of $173,830.11 for the full three years (See Attachment 2). Page 222 of 858 Page 2 of 2 RadioMolie is the only provider capable of integrating both the current dispatch system CAD, as well as interface with CalFire's MDT service. The purchase was split between the UVFA general fund (Fund 105) and the enterprise Ambulance fund (Fund 710). Staff is recommending to approve the purchase of Mobile Data Terminals in the amount of $173,830.11 from RadioMobile, and approve the corresponding budget amendment. Recommended Action: Approve the purchase of Mobile Data Terminals in the amount of $173,830.11 from RadioMobile, and approve the corresponding budget amendment. BUDGET AMENDMENT REQUIRED: Yes CURRENT BUDGET AMOUNT: 71021100.54330.18271: $19,100; 71021100.54320.18271: $3,250; 10521210.54330.18271: $10,023;10521210.54320.18271: $20,000 PROPOSED BUDGET AMOUNT: 71021100.54330.18271: $19,100; 71021100.54320.18271: $20,976.01; 10521210.54330.18271: $78,302.07; 10521210.54320.18271 $55,452.03 FINANCING SOURCE: New Funding PREVIOUS CONTRACT/PURCHASE ORDER NO.: N/A COORDINATED WITH: Doug Hutchison, Fire Chief Page 223 of 858 CASE STUDYLeading the Way in Fire Apparatus Connectivity and Location Accuracy for Fire Responders How CAL FIRE implemented new technology to improve safety and efficiency The California Department of Forestry & Fire Protection is not your typical fire department. Better known as CAL FIRE, the agency provides fire protection services across more than 31 million acres of privately-owned wildlands in the nation’s most populous state. In addition to those responsibilities, CAL FIRE’s thousands of firefighters provide all-hazard emergency services—responding to medical emergencies, auto accidents, hazmat incidents and more—in 36 of the state’s 58 counties. The 812 fire stations operated by CAL FIRE are organized in 21 administrative units that each have their own computer-aided dispatch (CAD) system and connectivity challenges. One area might have great 4G coverage, while another is so remote that cellular communication is impossible. To overcome those obstacles, CAL FIRE set out to increase operational efficiency, safety, and connectivity in two ways: The Need CAL FIRE researched countless technology options, but kept running into walls, including inflexible contract rules and an overall inability to provide a total solution for their connectivity and location accuracy needs. Then CAL FIRE discovered RadioMobile, a San Diego-based company whose clients include Los Angeles Fire Department and Los Angeles County Fire Department. “RadioMobile was so willing to find a total solution, and they allowed us to do a proof of concept with them before ever purchasing anything, which was great,“ says Dan Marksbury, CAL FIRE’s Chief Technology Officer. This was an important step in allowing CAL FIRE to realize its goal of increased dispatch, response efficiency and on-scene accountability. After additional research, CAL FIRE decided to install the Patriot All-In-One mobile data computer in over 1,100 of their frontline vehicles. By using the Patriot MDC along with technology that provides connectivity over LTE/4G, satellite, and CAL FIRE’s private land mobile radio (LMR)-based mobile data system (using narrowband frequencies), each vehicle was integrated into the AVL system. The application can also run on tablets and other devices. The communications center can now see exactly where responding vehicles are instead of guessing where they might be within their assigned service area, allowing dispatchers to send the closest available unit every time. As a CAL FIRE vehicle drives through an area, the system automatically finds a connection with 4G; when 4G is not available, the application (IQ Mobile) running on the mobile data computer (MDC) intelligently connects through the narrowband system or via satellite as a last option to always maintain data connectivity to the dispatch center. Beyond knowing exactly where a vehicle is at the time of dispatch, the ability to track a vehicle as they respond through urban, suburban and rural environments on the vehicle location system, is invaluable, according to CAL FIRE. A dispatcher or incident commander on a large-scale incident can provide turn-by-turn directions in remote or unfamiliar areas if needed, increasing the efficiency of any response. Crew members also have the incident detail and up-to-date information at their fingertips and no longer have to rely on hand-written notes scribbled onto scraps of paper as they are being dispatched; the address and other potential life-saving information is displayed on the Patriot’s screen along with a live map that routes them to the scene. With the entire map database contained within the MDC, the crew tracks their own movements and can also backtrack (breadcrumb) out of unfamiliar or low visibility areas even if network connectivity is lost. The Solution 1. Create seamless communications connectivity for their entire fleet of fire apparatus. 2. Equip all frontline vehicles with automatic vehicle location (AVL) technology that functions in all 31 million acres of service area. Patriot All-in-One MDC Patriot A-i-O MDC | Side Profile | User Interface ATTACHMENT 1 Page 224 of 858 CASE STUDYLeading the Way in Fire Apparatus Connectivity and Location Accuracy for Fire Responders The collaboration between CAL FIRE and RadioMobile has resulted in a new level of on-scene and whole-system situational awareness across the entire state. “The Patriot allows us to see where resources are while on a fire scene, and that is huge from an accountability standpoint,” shared Battalion Chief Matt Damon. And that visibility using real-time GPS and AVL technology helps CAL FIRE achieve its overarching goal: to increase the safety for responders and the people they protect. The Solution (continued) CAL FIRE is well on its way to accomplishing its key technology goals through this innovative partnership. “The high level of commitment and customer service by RadioMobile makes me confident this is the right solution for CAL FIRE,” says Damon. CAL FIRE’s advancements in communications and connectivity are only just beginning. CAL FIRE is working on new interoperability solutions that will allow fire personnel to communicate with other outside agencies, especially during major events like wildfires. As with any implementation process—especially for a statewide agency separated into 21 departments, each with its own unique set of circumstances—CAL FIRE faced challenges along the way. “For example, our vehicles don’t use shore power like a typical city fleet,” Marksbury explains. “So, when you’re dealing with systems that are designed to use the station as a power source to retain settings like sound and screen brightness, you run into some issues.” The CAL FIRE and RadioMobile implementation team worked together to address issues such as not having electrical connections when in the station and others unique to each of the agency’s units. Successful implementation of a system in an agency this size takes collaboration and creativity. Overcoming Challenges Now having accurate and very timely location, status and incident information automatically via data, much less voice traffic is needed, the benefits are huge. Patriot All-in-One MDC Change to- IQ Locator AVL and Incident Tracking Page 225 of 858 To:Ukiah Valley Fire Authority (CAL FIRE MEU Schedule A) Item Part No.Qty U/M Description MSRP Retail Sourcewell Extended 1 PATR-3 11 ea Patriot Mobile Data Computer, "All in One" Includes; 1TB SSD, 16GB RAM, Multi-Touch Screen, 3.5" Industrial SBC, 12.1" Display, 5-yr warr. 3,624.50$ 3,295.00$ 3,189.56$ 35,085.16$ 2 508-1610-64 11 ea OS, License, WIN10 Pro, 64 BIT (optional) 187.00$ 170.00$ 164.56$ 1,810.16$ 3 170-4428 4 ea Battery Backup Module (Saver) for MDC (optional) 181.50$ 165.00$ 159.72$ 638.88$ 4 508-1710-6 11 ea Ruggedized Keyboard with 6ft Cable, USB (optional) 302.50$ 275.00$ 266.20$ 2,928.20$ 5 508-1320-VP-SW2F-8-2461 508-1320-VB-181 11 ea MDC Mounting Hardware Includes: 8" Upper Pole w/flange, monitor & Keyboard mount, Mount, Universal Drill-Down, Vertical Base 324.50$ 295.00$ N/A 3,245.00$ 6 CP-MA3-0900600M 11 ea Cradlepoint COR IBR900 LTE Router *1 Incl: Single embedded LTE Advanced 600 Mbps LTE/HSPA+ modem, WiFi, GPS, DC Cable, ltd lifetime warranty while under NetCloud Service Plan, 3-Yr NetCloud Mobile Essentials 1,119.00$ 1,119.00$ N/A 12,309.00$ 7 AG-AP-MMF-CCWWG 11 ea Airgain MULTIMAX FV 5in1 SharkFin Antenna Includes: 2xLTE, 2xWiFi, GNSS, 2.4/5GHz, Bolt Mount, 15' cable, 3-yr warr., Black 346.50$ 315.00$ 304.92$ 3,354.12$ 8 270-5042-15 11 ea Ethernet Cable LTE Router-Patriot 20.90$ 19.00$ 18.39$ 202.31$ 9 170-SAT-FLEXCOM 5 ea Flexcom Satellite Terminal Includes 2-way messaging capability 1,529.00$ 1,390.00$ 1,345.52$ 6,727.60$ 10 170-POE-FLEXCOM-DC 5 ea Flexcom PoE Injector: DC 9-36V --> DC 88.00$ 80.00$ 77.44$ 387.20$ 11 170-ETH10-FLEXCOM 5 ea Flexcom Ethernet Cable POE, 10m 88.00$ 80.00$ 77.44$ 387.20$ 12 170-SAT-FLEXCOM 2 ea Flexcom Satellite Terminal Includes 2-way messaging capability $ 1,529.00 1,390.00$ $ 1,345.52 2,691.04$ 13 170-POE-FLEXCOM-DC 2 ea Flexcom PoE Injector: DC 9-36V --> DC $ 88.00 80.00$ 77.44$ 154.88$ 14 170-ETH10-FLEXCOM 2 ea Flexcom Ethernet Cable POE, 10m $ 88.00 80.00$ 77.44$ 154.88$ 15 CP-MA3-0900600M 2 ea Cradlepoint COR IBR900 LTE Router *1 *2 Incl: Single embedded LTE Advanced 600 Mbps LTE/HSPA+ modem, WiFi, GPS, DC Cable, ltd lifetime warranty while under NetCloud Service Plan, 3-Yr NetCloud Mobile Essentials $ 1,119.00 1,119.00$ N/A 2,238.00$ 16 AG-AP-MMF-CCWWG 2 ea Airgain MULTIMAX FV 5in1 SharkFin Antenna Includes: 2xLTE, 2xWiFi, GNSS, 2.4/5GHz, Bolt Mount, 15' cable, 3-yr warr., Black $ 346.50 315.00$ 304.92$ 609.84$ Mobile Equipment for iPad: Satellite / LTE Mobile Equipment for MDC: MDC / LTE / Satellite Quotation No. Q220113-1 Date: January 13, 2022 Sourcewell Contracts: 042021-RDO 051321-RDO System Quote (Sourcewell) MDC - LTE - Satellite - AVL - Mobile App - IQ Flex RadioMobile Inc. 8801 Kenamar Drive San Diego, CA 92121 858.530.1060 ATTN: Fire Chief Doug Hutchison 1500 South State Street Ukiah, CA 95482 *1 3-Year NetCloud Mobile Essentials Renewal = $540 /device (after initial term expiration). *1 3-Year NetCloud Mobile Essentials Renewal = $540 /device (after initial term expiration). '*2 Router required for satellite terminal interface Ukiah Valley Fire Authority Mendocino Unit (MEU) Schedule A 1 | 3 January 2022 ATTACHMENT 2 Page 226 of 858 17 S708-LIC-2100-8.1-M 11 ea annual License, IQ Mobile Software (Windows) CAL FIRE Schedule A ($25 /device/month) $ 330.00 300.00$ $ 290.40 3,194.40$ 18 S708-LIC-2100-IQT-M 7 ea annual License, IQ Tablet Software (iOS) CAL FIRE Schedule A ($25 /device/month) $ 330.00 300.00$ $ 290.40 2,032.80$ 19 S708-LIC-IQMSL-M 18 ea annual License, IQ Mobile Server Lite AVL Interface to CAL FIRE ($22 /vehicle-device /month) $ 290.40 264.00$ $ 255.55 4,599.94$ 20 S708-LIC-IQMSL-INT-M 18 ea annual License, IQ Mobile Server Lite Device Interface to CAL FIRE ($36 /MSaaS license /month) $ 475.20 432.00$ $ 418.18 7,527.17$ 21 700-SAT-INT-ORB-M 7 ea annual License, Satellite device interface to satellite service gateway ($4 /satellite terminal /month) $ 52.80 48.00$ $ 46.46 325.25$ 22 700-LIC-IQMSL-IQL-M 1 ea annual License, IQ Locator Software (map) ($11 /seat/month) $ 145.20 132.00$ $ 127.78 127.78$ 23 700-SAT-FLEXCOM10-1 7 ea annual 10 MB Satellite Service Plan (per device), 1-Year Term1 ($108 /month). If data usage exceeds 10MB; $15 /MB $ 1,425.60 1,296.00$ $ 1,254.53 8,781.70$ 24 700-SAT-FLEXCOM5-1 optional ea annual 5 MB Satellite Service Plan (per device), 1-Year Term1 ($65 /month). If data usage exceeds 5MB; $18 /MB $ 858.00 780.00$ $ 755.04 -$ 25 RM-SVR-IQMSL 1 ea Onboarding: IQ Flex Configuration, Resource Provisioning, Account Setup (one time per billable agency) $ 11,000.00 10,000.00$ 9,680.00$ 9,680.00$ 26 P606-Project Mgmt 1 Lot Project Management, Admin Support, Documentation $ 5,500.00 5,000.00$ 4,840.00$ 4,840.00$ 27 RM-IQLSEAT-SETUP 1 ea IQ Locator Software Setup $ 1,100.00 1,000.00$ 968.00$ 968.00$ 28 Installation-AVL 0 ea Installation Training 1st Device (LTE Router/Antenna or Sat) $ 935.00 850.00$ 822.80$ -$ 29 Installation-Patriot 0 ea Installation Training Patriot MDC $ 550.00 500.00$ 484.00$ -$ 30 Installation-ANT 0 ea Installation Training 2nd Device (Satellite Terminal/Antenna) $ 165.00 150.00$ 145.20$ -$ 31 TRAINING optional Lot Formal Training Services (per class) $ 8,250.00 7,500.00$ 7,260.00$ -$ 32 TRAINING optional ea Informal Training Services (In-vehicle) $ 165.00 150.00$ 145.20$ -$ 33 TRAVEL 0 Lot Travel and living expense Onsite services; install training 1,100.00$ 1,100.00$ N/A -$ Professional Services Mobile Software-as-a-Service (MSaaS): iPad (iOS) Satellite Service Plan Mobile Software-as-a-Service (MSaaS): MDC (Windows) IQ Flex Lite Server-as-a-Service (LSaaS) Ukiah Valley Fire Authority Mendocino Unit (MEU) Schedule A 2 | 3 January 2022 Page 227 of 858 67,074.83$ 5,848.64$ 3,194.40$ 2,032.80$ 12,580.13$ 8,781.70$ 15,488.00$ 115,000.50$ $ 5,651.57 $ 795.00 $ 120,652.07 $ 88,411.47 $ 26,589.02 NOTES: First Year Subtotal Tax (7.875%) First Year Total Professional Services (one-time) Pricing Summary Prepared by: Ron Lyons Prepared by: rlyons@radiomobile.com Prepared by: 619.855.7041 Mobile Software-as-a-Service for MDC Subtotal (annual recurring) Mobile Software-as-a-Service for iPad Subtotal (annual recurring) Lite Server-as-a-Service Subtotal (annual recurring) Satellite Service Plan (annual recurring) Total one-time (pre-tax) Hardware, professional services Total recurring annual Software licenses First Year Summary Shipping / Handling  Payment terms: 1) 25% with PO  Payment terms: 2) Milestones upon receipt  3-year minimum subscription term  Prices are effective Jan 1, 2022 and are valid for 60 days  Shipping to be included on final invoice  1.5% interest per month charged on balances over 30 days  Services through the Lite Server are intended for use by Schedule A agencies within jurisdiction of this Unit only. Mobile Equipment for iPad Subtotal (one-time) Mobile Equipment for MDC Subtotal (one-time) Ukiah Valley Fire Authority Mendocino Unit (MEU) Schedule A 3 | 3 January 2022 Page 228 of 858 Page 1 of 1 Agenda Item No: 7.k. MEETING DATE/TIME: 1/19/2022 ITEM NO: 2022-27 AGENDA SUMMARY REPORT SUBJECT: Report the Emergency Purchase of all Materials and Labor for the Traffic Signal Control Cabinets Replacement at the Intersections of State & Standley and State & Perkins Streets from DC Electric Group in the Amount of $58,935.00. DEPARTMENT: Public Works PREPARED BY: Seth Strader, Administrative Analyst PRESENTER: Tim Eriksen, Director of Public Works/City Engineer ATTACHMENTS: 1. DC Quote 2. Attachment 2 - PO Summary: Council will receive a report of the acquisition of an emergency purchase of two traffic signal cabinet replacements from DC Electric Group for the amount of $58,935.00. Background: In November 2021, City staff identified a problem with the design of the traffic signal control mechanisms at the intersections of State Street and Perkins Street and Standley Street. The existing controllers that were planned to be reused do not adequately adapt to the new hardware and software that were installed as part of the Streetscape Project. Note, supply chain issues had previously hampered the full installation of the system prior to the identification of the problems with the cabinet . Discussion: City staff and the contractors involved in the Streetscape Project reviewed DC Electric Group’s proposal and decided that it was the most economical and timely solution to get the two intersections operating correctly. Please see Attachment 1. An emergency Purchase Order (Attachment 2) was created and provided to DC Electric Group, due to the need to get the traffic signals operational as soon as possible and without further delays. Recommended Action: Receive Report for the Emergency Purchase of all Materials and Labor for the Traffic Signal Control Cabinets Replacement at the Intersections of State & Standley and State & Perkins Streets from DC Electric Group in the Amount of $58,935.00. BUDGET AMENDMENT REQUIRED: No CURRENT BUDGET AMOUNT: 12024200.80230.18019: $58,935 PROPOSED BUDGET AMOUNT: N/A FINANCING SOURCE: N/A PREVIOUS CONTRACT/PURCHASE ORDER NO.: 47585 COORDINATED WITH: Tim Eriksen, Director of Public Works/City Engineer Page 229 of 858 ATTACHMENT 1 Page 230 of 858 Purchase Order Purchase Order # THIS NUMBER MUST APPEAR ON ALL INVOICES, PACKAGES AND SHIPPING PAPERS. Fiscal Year Page of Delivery must be made within doors of specified destination. PO TotalRECEIVING COPY BILL TO V E N D O R SHIP TO Date OrderedVendor Phone Number Date RequiredVendor Fax Number Buyer Item#Description/Part No.Unit Price Extended PriceUOMQty CITY OF UKIAHATTN: ACCOUNTS PAYABLE300 SEMINARY AVENUEUKIAH, CA 95482 Freight Method/TermsDelivery Reference Department/Location Sales Tax Rate 2022 1 1 47585-00 DC ELECTRIC GROUP INCPO BOX 7525COTATI CA 94931 CITY OF UKIAH - CIVIC CENTER300 SEMINARY AVENUEUKIAH CA 95482 11/18/2021 12/31/2021Mary Williamson 0.000UKIAH / NET 30 PUBLIC WORKS DEPARTMENTJASON BENSON $58,935.00 1 1.0 EACH $58,935.000 $58,935.00ALL LAOBOR, MATERIALS AND EQUIPMENT TO PERFORM THE WORK AS LISTED ON THE ATTACHEDQUOTE AT 2 LOCATIONS: N. STATE & STANDLEYAND N. STATE AND E. PERKINS 120.12.12.24.242.2420.24200.80230.18254 $58,935.00 REQ #E32827 PER QUOTE DATED 11/16/2021, JOB NAME: REPLACE TWO (2) TRAFFIC SIGNAL CABINETS AND CONTROLLERS WORK PERFORMED WILL BE SUBJECT TO PREVAILING WAGE ADDENDUM ATTACHMENT #A, DATED 11/18/2021 ATTACHMENT 2 Page 231 of 858 Page 1 of 2 Agenda Item No: 7.l. MEETING DATE/TIME: 1/19/2022 ITEM NO: 2022-1220 AGENDA SUMMARY REPORT SUBJECT: Approval of a Professional Service Contract with GHD for Flood Mapping Review Support in the Amount Not to Exceed $17,000, and Corresponding Budget Amendment. DEPARTMENT: Public Works PREPARED BY: Tim Eriksen, Public Works Director/City Engineer PRESENTER: Tim Eriksen, Public Works Director/City Engineer ATTACHMENTS: 1. GHD Proposal - FEMA Flood Mapping Review Summary: The City Council will consider given an approval of a professional service contract with GHD for flood mapping review support in the amount not to exceed $17,000, and consider approval of a corresponding budget amendment. Background: In 2020, the Federal Emergency Management Agency (FEMA) began the process of updating the flood plain elevations throughout the City of Ukiah. The first preliminary results were reported to the City Engineering team in 2021. The results were radically different than what currently exists in the City, the implications of which could have significant impacts on development and insurance rates throughout the city. Since that time, in order to protect the interests and investments of the community, City Staff has worked on solutions with FEMA staff to review the study results and discuss contradictions with observed historic flood events in the City. In short, City Staff have been concerned about the fact that the FEMA study does not seem to reflect what City Staff has witnessed in the City. The Engineering Department has searched for experts in the hydraulic field in order to assist in the review of the FEMA results. Discussion: The Engineering Staff discussed this issue with experts in the hydraulic field with GHD Engineering. Staff also discussed this approach with FEMA and both agree that the additional expert review and engagement is going to be helpful to this process. GHD provided a proposal for this review (Attachment 1). GHD will be able to start immediately and FEMA will share their flood models with our experts for a more robust review of this model that the Engineering Staff is questioning. As part of the scope of work, GHD will prepare technical memo for staff and Council review. This will be a high-level review with recommendations for further study and collaboration as needed. This item was unforeseen and was not included in the 21/22 fiscal year budget. Staff is asking for a budget amendment for this work. Recommended Action: Approve the Professional Service Contract with GHD for Flood Mapping Review Support in the Amount Not to Exceed $17,000, and Approval of Corresponding Budget Amendment. BUDGET AMENDMENT REQUIRED: Yes CURRENT BUDGET AMOUNT: 10024210.52100: $0 PROPOSED BUDGET AMOUNT: 10024210.52100: $17,000 FINANCING SOURCE: 100 Fund Balance PREVIOUS CONTRACT/PURCHASE ORDER NO.: N/A COORDINATED WITH: Page 232 of 858 Page 2 of 2 Page 233 of 858 The Power of Commitment 2021 FEMA Flood Mapping Review Support 2235 Mercury Way, Suite 150 Santa Rosa, CA 95407 USA www.ghd.com 20 May 2021 Tim Eriksen, PE Director of Public Works/City Engineer City of Ukiah Public Works Department 300 Seminary Avenue Ukiah, CA 95482-5400 2021 FEMA Flood Mapping Review Support Dear Mr. Eriksen GHD is pleased to provide this proposal for professional services in support of the evaluation of the Department of Homeland Security’s Federal Emergency Management Agency (FEMA) updated Flood Insurance Rate Map (FIRM) panels and Flood Insurance Study (FIS) reports for Mendocino County. FEMA Risk Analysis Branch Chief for Region IX, Alison Kerns, sent a letter to the City of Ukiah (City) Mayor, Honourable Juan Orozco, dated February 4, 2021 to notify an update on the FEMA FIRM mapping. In the letter, FEMA requested that the City respond to the update through review and comment by April 18, 2021, with the caveat that there will be additional opportunities to provide feedback on the Special Flood Hazard Area delineations before being finalized. To support the City to respond to the FEMA notification on the mapping update, GHD proposed to providing feedback by comparing the preliminary 2021 models and mapping to the effective 2011 versions. The mapping comparison review includes: – Coordination with key stakeholders – Obtain preliminary hydrologic and hydraulic models, and available supporting Geographic Information System (GIS) files – Compare floodplain mapping within an ArcGIS platform and identify changes between 2011 and 2021 mapping – Investigate changes in hydrologic and hydraulic modelling and analysis – Document the findings and recommendations in a technical memorandum (TM) This will be a high-level review with recommendations for further study and collaboration as needed. Based on our understanding of the City needs, and our experience to similar supporting task, the following is a GHD proposed scope of service to support the City to review the FEMA mapping update. Task 1: Project Management GHD will conduct monthly progress and coordination meetings with the City. We will document meetings by providing an agenda and meeting summary, as well as potential handouts and preparation of power point slides as required for each meeting. The anticipated project meetings include: – Kick-off meeting. – Monthly progress and coordination meetings. It has been assumed that all meetings will be virtual using Microsoft Teams or other platform that the City prefers and all documents will be provided to the City in electronic form. ATTACHMENT 1 Page 234 of 858 The Power of Commitment 2021 FEMA Flood Mapping Review Support 2 Task 2: Stakeholder Coordination GHD will identify and engage stakeholders including FEMA, STARR II, Mendocino County (County) and the City. The intent of this task will be to gain insight into different perspectives, an understanding of the timeline, and coordinate review and commenting to provide feedback to FEMA. We anticipate that the level of effort will include three (3) meetings with FEMA and STARR II and one (1) meeting with the County. We will document meetings by providing an agenda, meeting summary, and sign-in sheet, as well as potential handouts and preparation of power point slides as required for each meeting. The anticipated project meetings include: – Meeting with FEMA and STARR II to set the timeline and gather materials. – Meeting with FEMA and STARR II to discuss initial findings. – Meeting with the County to gain County perspective and intent, and to coordinate mapping review efforts. – Meeting with FEMA and STARR II to discuss review findings and recommendations. It has been assumed that all meetings will be virtual using Microsoft Teams or other platform that the City prefers and all documents will be provided to the City in electronic form. Task 3: Hydrologic, Hydraulic Modelling Review and GIS Mapping The effective 2011 FIS and SFHA will be compared to the 2021 and any discrepancies investigated through a detailed review of preliminary modelling versus assumptions used in the effective modelling. The analysis will include an inventory of information reviewed and recommendations for resolving any discrepancies. It is noted that no new modelling or analysis will be conducted (review only). Task 4: Reporting GHD will prepare a draft TM and a final TM. The final TM will be completed after review and comment from the City. It has been assumed that all comments will be incorporated into one revision round. Project Team The scope of work will be conducted by the Hydrologic and Hydraulic Engineering Team with the following team members proposed for this project. Raymond Wong will be responsible as the Project Manager and provide technical supervision and resourcing for the project. Steve Allen will act as the Project Director ensuring that all ISO 9001 checks and balances have been completed. Paul Glenn will be our Project Engineer to provide technical review on the hydrology and hydraulic analysis, and floodplain mapping. Matt Kennedy will be our client manager and will be available as needed to provide additional support and coordination. An introduction of our Hydrologic and Hydraulic Engineering Team is summarized in the following table: Page 235 of 858 The Power of Commitment 2021 FEMA Flood Mapping Review Support 3 Steve Allen, PE - Project Director Steven Allen is a proud, third generation native of the North Coast bringing over 24 years of experience to our team, overseeing projects involving hydrology, hydraulics, fluvial geomorphology, floodplain design, channel restoration, wetland mitigation construction, stream bank protection, bioengineering techniques, stormwater management and flood control, open channel water conveyance, grading plans, erosion and sediment control design and plans, construction services, and regulatory compliance in sensitive environments. Steven has served in a high-level leadership capacity for all of restoration experience on the North Coast (notably leading our West Coast Water Restoration Group) and has led habitat restorations, enhancements, and passage improvements for agencies throughout Northern California, such as the BCRAA, the Humboldt County RCD, the California Water Service Company (CalWater), CalTrout, the California Coastal Conservancy (CCC), Alameda County Water District, and California Department of Fish & Wildlife (CDFW), as well as for such cities as Trinidad, Fortuna, and Eureka, and local tribal entities. Raymond Wong, PhD, PE, LEED AP, CFM - Project Manager Dr. Raymond Wong is an ASFPM Certified Floodplain Manager specializing in water resources engineering including urban flood protection, stream restoration, and watershed planning and management. His technical emphasis includes hydrology, hydraulic, geomorphology, and numerical modeling. Raymond is a proven technical leader, managing multi-discipline teams to deliver timely and high-quality services to clients. He has consulted on numerous storm drainage floodplain coupled studies and modeling projects, developed and advised on over $200 million of Capital Improvement Projects (CIP) for his clients. Raymond received his honor undergraduate degree at the University of Toronto and graduate degrees at Stanford University and University of California - Berkeley. His research work studied flood control projects and watershed programs in the San Francisco Bay Area, Los Angeles Area, Milwaukee, Toronto, Beijing, and Singapore, and he has presented at conferences and workshops across the US and internationally, such as in France and China. Paul Glenn, PE, PG - Project Engineer Paul is a project manager, civil engineer, and hydrogeologist with over 22 years of experience in delivering water resources related projects. His skills are specialized in stormwater and water quality, surface water, and groundwater assessments including hydrological and hydraulic analysis; stormwater and water quality master planning and design; flood mitigation alternatives and design; groundwater flow and contaminant transport analysis; groundwater dewatering, injection, and remediation design; and geotechnical engineering. As part of assessment and evaluations, Paul has developed significant experience in hydrologic, hydraulic, and water quality modeling for both surface water and groundwater environments. In 2017, Paul was designated as a Subject-Matter Expert (SME) technical review representative on behalf of the Federal Emergency Management Agency (FEMA) responsible for the review of hydrology and hydraulics as well as levee/floodwall designs related to letters of map revision (LOMR) and conditional letters of map revisions (CLOMR). Page 236 of 858 The Power of Commitment 2021 FEMA Flood Mapping Review Support 4 Project Fee and Schedule We anticipate that all tasks can be completed within three months after receiving notice to proceed. GHD proposes a time-and-materials fee not to exceed $17,000 to complete the review. The attached fee table outline the proposed fee and staff hour estimates for each task. We welcome the opportunity to work with you on this important study, and look forward to contributing to its success. Should you have any questions, please do not hesitate to contact me. Sincerely, GHD Raymond Wong, PhD, PE, CFM, LEED AP Project Manager 650.867.3304 raymond.wong@ghd.com Page 237 of 858 City of Ukiah 2021 FEMA Flood Mapping Review Support 5/20/2021 Pr o j e c t D i r e c t o r Pr o j e c t M a n a g e r Pr o j e c t E n g i n e e r En g i n e e r St a f f E n g i n e e r GI S S p e c i a l i s t Ad m i n Hours Labor Subtotal Total $275 $265 $245 $185 $145 $135 $95 Task 1 - Project Management 1 4 7 0 0 0 0 12 $3,050 $3,050 $3,050 Kick-off Meeting 1 2 3 6 $1,540 $1,540 $1,540 Monthly Progress Meetings 2 4 6 $1,510 $1,510 $1,510 Task 2 - Stakeholder Coordination 0 8 8 0 0 0 0 16 $4,080 $4,080 $4,080 Four (4) Meetings 8 8 16 $4,080 $4,080 $4,080 Task 3 - Hydrologic, Hydraulic Modeling Review and GIS Mapping 2 2 9 5 7 8 0 33 $6,305 $6,305 $6,305 Review 1 1 5 5 7 8 27 $4,785 $4,785 $4,785 Recommendations 1 1 4 6 $1,520 $1,520 $1,520 Task 4 - Reporting 2 2 6 3 0 2 2 17 $3,565 $3,565 $3,565 Draft and Final TMs 2 2 6 3 2 2 17 $3,565 $3,565 $3,565 GRAND TOTAL 5 16 30 8 7 10 2 78 $17,000 $17,000 $17,000 Page 238 of 858 Page 1 of 4 Agenda Item No: 11.a. MEETING DATE/TIME: 1/19/2022 ITEM NO: 2022-22 AGENDA SUMMARY REPORT SUBJECT: Conduct a Public Hearing and Consider Adopting Respective Resolutions Authorizing Lease Revenue Bonds, Series 2022 to Renovate the City Corporation Yard and Construct Improvements to Various City Streets (This item was continued from December 15, 2021.) DEPARTMENT: Finance PREPARED BY: Dan Buffalo, Finance Director PRESENTER: Dan Buffalo, Finance Director ATTACHMENTS: 1. 1 Ukiah City Reso- Lease 2. 2 Ukiah Authority Reso- Issue Bonds 3. 3 Site Lease - Ukiah 4. 4 Lease Agreement - Ukiah 5. 5 Indenture - Ukiah 6. 6 Assignment Agmt - Ukiah 7. 7 POS (Ukiah LRBs) 8. 8 Bond Purchase Agreement (Piper Sandler) Summary: The City Council will consider adopting respective resolutions authorizing lease revenue bonds, Series 2022 to renovate the City Corporation Yard and construct improvements to various city streets. The terms and the amounts presented in this report are subject to change. This item has been placed on the agenda to allow Council the ability to consider authorization should it be deemed warranted. Background: The City has developed a capital financing strategy to take advantage of current municipal financial market rates to engage in and complete certain capital projects at a lower cost than other ordinary alternatives. It intends to issue debt to finance these projects, funded primarily by the general fund, most notably resources derived from Measure Y. Proceeds from the Lease Revenue Bonds, Series 2022 (the “Bonds”) will be used to renovate the City’s Corporation Yard and construct improvements to various city streets. The Corporation Yard is the base of operations for the City Fleet and Plant Maintenance Facility, Street Maintenance Crew, Water and Wastewater Maintenance Crew, and Electric Utility Maintenance Crew. The estimated renovation cost is $15 million. The streets projects primarily consist of improvements to certain streets, rights-of-way reconstruction, and related underground utility projects, as follows: Dora Street: reconstruct Mill to Grove streets and overlay Upper Luce Avenue to Mill Street; Gobbi Street: reconstruct from Highway 101 to Dora Street; Main Street: reconstruct from Gobbi to Norton streets; Perkins Street: Main Street to Hwy. 101; Dora and State Streets: overlay Beacon Lane to Washington Avenue; Clara Avenue: reconstruct/overlay from State Street to North Orchard Avenue; and Low Gap Road: reconstruct/overlay from State to Bush Streets. The estimated streets project cost is $30 million ($20.7 million for streets and $9.3 million for street utilities). The City has expressed its intention to issue municipal tax-exempt bonds to pay the costs associated with renovating the City’s Corporation Yard and constructing improvements to various city streets. Page 239 of 858 Page 2 of 4 City staff worked with its municipal advisor (NHA Advisors, LLC) to develop a financing plan and engage bond counsel (Jones Hall), an underwriter (Piper Sandler), and other parties to complete the financing. The Ukiah Public Financing Authority (the “Authority”) will be used as the conduit entity to assist in the financing as the counterparty to the various legal agreements and as issuer of the Bonds in an aggregate amount of not-to-exceed Forty-Eight Million Dollars ($48,000,000). It is anticipated that the Corporation Yard component of the Bonds will be repaid over a 30-year term, the utilities component repaid over a 20-year term, and the streets component repaid over a 10-year term. As a result, annual debt service on the Bonds is estimated to be approximately $3.4 million through FY 2031-32, approximately $2.1 million from FY 2032-33 through FY 2032-33, and approximately $1.05 million through the remaining term of the Bonds (FY 2051-52). A public hearing on this item was scheduled on December 15, 2021 originally, but was continued to this meeting, January 19, 2022. Staff informed Council that a potential funding opportunity for streets had presented itself and needed further evaluation. Through the CalTrans Local Partnership Program the City may have an opportunity to leverage existing City funds (currently planned for encumbrance against a bond issue) as a match for state grant funding. As of the date of this report, staff is still waiting on word from CalTrans on the City's eligibility and, following that, what funding would be available. This item may require an additional continuance to a date and time certain on February 2, 2022. Discussion: The Financing Documents are being presented to the City Council as “form-only documents.” The final form of the documents will be produced at this time because the exact amounts, dates, and certain other information will not be known until the actual sale date. The resolutions (Attachments #1 and #2) authorize and direct certain City and Authority officers and Staff respectively to finalize the Financing Documents as and when appropriate, and to do all things necessary to provide for the issuance of the Bonds. If the final terms for any reason should fall outside of expected parameters, Staff will return for further direction before finalizing the transaction. The Financing Documents, and a brief description of each, is as follows: Attachment #3. Site Lease: This is the agreement between the City and Authority, which provides the mechanism of leasing the Leased Assets, respectively, to the Authority so that they can be leased back pursuant to the respective Lease Agreements. Attachment #4. Lease Agreement: This agreement provides for the lease of the Leased Assets, respectively, back to the City in exchange for Lease Payments commensurate with the debt service schedule for the Bonds. Under the Lease Agreement, the City is pledging its General Fund to make the annual Lease Payments for the life of the Bonds. The Lease Agreement, among other things, provides the following: • That the City must include Lease Payments due each Fiscal Year in each corresponding annual budget and make the necessary annual appropriations for all such Lease Payments. • That the City must, at its sole cost and expense, keep and maintain the Site and Facilities in a clean, safe, and good condition and repair. • That the City shall have the option at any time to substitute other real property in place of the Site and Facilities (i.e., the City has the right to substitute the collateral of the lease transaction), provided that the City is able to first satisfy all of the requirements set forth in Section 3 of the Lease Agreement. • That the City must procure and maintain throughout the term of the financing, the insurance set forth in Section 5 of each Lease Agreement. • That the obligation of the City to pay Lease Payments shall be abated during any period in which by reason Page 240 of 858 Page 3 of 4 of any damage, destruction or condemnation there is substantial interference with the use and occupancy of the Leased Assets or any portion thereof by the City. • That upon termination or expiration of a Lease Agreement, and the first date upon which the respective Bonds are no longer outstanding, all right, title and interest in and to the respective Leased Asset shall vest in the City. • That the Authority covenants that, prior to the discharge of a Lease Agreement and the corresponding series of Bonds, it will diligently maintain its status as a joint powers authority under the laws of the State of California, and will not engage in any activities inconsistent with the purposes for which the Authority is organized. Attachment #5. Indenture of Trust: This agreement provides for execution and delivery of the Bonds in exchange for proceeds in the par amount of the Bonds, and further lays out the covenants and specifics of the Bonds, as well as the Trustee’s duties, repayment mechanisms, default and remedies provisions, and Bondholder’s associated rights and remedies. Attachment #6. Assignment Agreement: This agreement provides the terms and conditions under which the Authority assigns the City’s Lease Payments to the Trustee, for ultimate payment to the Bondholders. Attachment #7. Preliminary Official Statement: The offering document that discloses to prospective investors certain information that would aid in and investors decision to purchase the Bonds. The current version of the Official Statement (OS) as attached to this staff report is the Preliminary Official Statement. The OS outlines the terms of the sale of the Bonds, security for the Bonds, interest rate, obligations of the City and Authority, information about the City, and potential risks of purchasing the Bonds. Attachment #8. Bond Purchase Agreement: In this agreement, the underwriter (Piper Sandler) agrees to purchase all the Bonds provided that the terms and conditions set forth therein are satisfied. Piper Sandler will then sell the Bonds to investors. TIMING: Assuming approval of the resolutions by the City and the Authority, City Staff and its financing team will deliver a credit rating presentation to S&P Global Ratings (S&P) in mid-December. S&P will provide a public credit rating for the Bonds. Upon receipt of the credit rating, Staff anticipates that the Bonds will be sold to investors in mid-January, at which time, a final interest rate will be locked. Delivery of funds is expected in late January. FINANCIAL IMPACT: The annual debt service on the Bonds is estimated to be approximately $3.4 million through FY 2031-32, approximately $2.1 million from FY 2032-33 through FY 2032-33, and approximately $1.05 million through the remaining term of the Bonds (FY 2051-52). GOOD FAITH ESTIMATES: The following information consists of estimates that have been provided by the Municipal Advisor (NHA Advisors, LLC) and has been represented by such party to have been provided in good faith: 1. True Interest Cost of the Bonds: 2.80% 2. Finance Charge of the Bonds (sum of all fees/charges paid to third parties): $456,325 3. Net Proceeds of the Bonds to be Received (net of finance charges, reserves and capitalized interest, if any): $45,025,000 Page 241 of 858 Page 4 of 4 4. Total Payment Amount through Maturity of the Bonds: $65,252,941 The foregoing constitute good faith estimates only. The principal amount of the Bonds, the true interest cost of the Bonds, the finance charges thereof, the amount of proceeds received therefrom and total payment amount with respect thereto may differ from such good faith estimates due to: (a) the actual date of the sale of the Bonds being different than the date assumed for purposes of such estimates; (b) the actual principal amount of Bonds sold being different from the estimated amount used for purposes of such estimates; (c) the actual amortization of the Bonds being different than the amortization assumed for purposes of such estimates; (d) the actual market interest rates at the time of sale of the Bonds being different than those estimated for purposes of such estimates; (e) other market conditions; or (f) alterations in the City’s financing plan, or a combination of such factors. The actual date of sale of the Bonds and the actual principal amount of Bonds sold will be determined by the City based on a variety of factors. The actual interest rates borne by the Bonds may be subject to change from what is presented above and that may have an impact on the amortization of the Bonds. Recommended Action: Adopt resolutions authorizing the issuance of lease revenue bonds and authorizing the City Manager to execute all related documents for the renovation of the City Corporation Yard and improvements to various City streets. BUDGET AMENDMENT REQUIRED: N/A CURRENT BUDGET AMOUNT: N/A PROPOSED BUDGET AMOUNT: N/A FINANCING SOURCE: N/A PREVIOUS CONTRACT/PURCHASE ORDER NO.: N/A COORDINATED WITH: NHA Advisors Page 242 of 858 RESOLUTION 2022-____ A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF UKIAH AUTHORIZING A LEASE FINANCING AND APPROVING THE ISSUANCE AND SALE OF LEASE REVENUE BONDS BY THE UKIAH PUBLIC FINANCING AUTHORITY TO FINANCE PUBLIC CAPITAL IMPROVEMENTS, AND APPROVING RELATED DOCUMENTS AND OFFICIAL ACTIONS RELATED THERETO WHEREAS, the City of Ukiah desires to renovate its Corporation Yard and construct improvements to various City streets (collectively, the “Project”); and WHEREAS, the Ukiah Public Financing Authority (the “Authority”) was formed to, among other things, assist the City with financing public capital improvements, including the Project; and WHEREAS, in order to provide financing for the Project, the City has agreed to lease certain real property, consisting of city streets (the “Leased Property”), to the Authority as provided in a Site Lease, as defined herein; and WHEREAS, in order to fund its payment obligation under the Site Lease, the Authority proposes to issue and sell its Lease Revenue Bonds, Series 2022 (Capital Projects) (the “Bonds”) under Article 4 of Chapter 5, Division 7, Title 1 of the Government Code of the State of California, commencing with Section 6584 of said Code (the “Bond Law”); and WHEREAS, in order to secure the payments of principal of and interest on the Bonds, the Authority proposes to lease the Leased Property back to the City under a Lease Agreement (the “Lease Agreement”), under which the City is obligated to pay semiannual lease payments as rental for the Leased Property, and the Authority will assign substantially all of its rights under the Lease Agreement to The Bank of New York Mellon Trust Company, National Association, as trustee for the Bonds; and WHEREAS, to provide for development of the most favorable debt structure for the City and to ensure the most favorable reception in the marketplace for the Bonds, the City has requested the Authority to sell the Bonds through a negotiated sale pursuant to the terms of a Bond Purchase Agreement (the “Bond Purchase Agreement”) between the Authority, the City and Piper Sandler , as underwriter (the “Underwriter”); and WHEREAS, for purposes of the sale of the Bonds, the City has caused to be prepared an Official Statement describing the Bonds, the preliminary form of which is on file with the City Clerk and the Council, with the aid of their staff, have undertaken such review of the Official Statement as hereinafter described as is necessary to assure proper disclosure of all material facts relating to the Bonds that are within the personal knowledge of Council members and the staff; and WHEREAS, as required by Section 6586.5 of the California Government Code, the City has caused publication of a notice of a public hearing on the financing of the public capital improvements included within the Project once at least five (5) days prior to the hearing in a newspaper of general circulation in the City; and Attachment 1 Page 243 of 858 -2- WHEREAS, the Council held a public hearing at which all interested persons were provided the opportunity to speak on the subject of financing such public capital improvements; and WHEREAS, the information required to be obtained and disclosed by the City Council related to the Bonds pursuant to Government Code Section 5852.1 is set forth in the staff report accompanying this Resolution; and WHEREAS, the Council wishes at this time to approve all proceedings of the City relating to the foregoing; NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Ukiah, as follows: Section 1. The Council hereby approves the issuance of the Bonds by the Authority under the Bond Law in a maximum principal amount not to exceed $48,000,000, for the purpose of financing the Project. The Council hereby finds that issuance of the Bonds by the Authority for the purpose of financing the Project will result in significant public benefits of the type described in Section 6586 of the California Government Code, including, but not limited to, a more efficient delivery of City services to residential and commercial developments within the City and demonstrable savings in effective interest rate, bond preparation, bond underwriting and/or bond issuance costs. Section 2. The Council hereby approves each of the following agreements required for the issuance and sale of the Bonds, in substantially the respective forms on file with the City Clerk together with any changes therein or additions thereto deemed advisable by the Mayor, Vice Mayor, City Manager, Finance Director, or a designee appointed by such person (each, an “Authorized Officer”), whose execution thereof shall be conclusive evidence of the approval of any such changes or additions. An Authorized Officer is hereby authorized and directed for and on behalf of the City to execute, and the City Clerk is hereby authorized and directed to attest, the final form of each such agreement, as follows: • Site Lease, between the City as lessor and the Authority as lessee, under which the City leases the Leased Property to the Authority in consideration of the payment of an upfront amount which will be applied by the City to the Project; • Lease Agreement, between the Authority as lessor and the City as lessee, under which the Authority leases the Leased Property back to the City and the City agrees to pay semiannual lease payments to provide revenues with which to pay principal of and interest on the Bonds when due; and • Continuing Disclosure Certificate, to be executed by the City for the purpose of providing annual financial information and notice of certain enumerated events to holders and beneficial owners of the Bonds. Section 3. The Council hereby approves the negotiated sale of the Bonds by the Authority to the Underwriter. The Bonds shall be sold pursuant to the terms and provisions of the Bond Purchase Agreement among the Authority, the City and the Underwriter in Attachment 1 Page 244 of 858 -3- substantially the form on file with the City Clerk together with any changes therein or additions thereto deemed advisable by an Authorized Officer. The principal amount of the principal obligation of the City under the Lease Agreement shall not exceed $48,000,000, the true interest cost of the Bonds shall not exceed 3.25% and the Underwriter’s discount shall not exceed 0.7%. Section 4. The Council hereby approves the preliminary Official Statement describing the Bonds in substantially the form on file with the City Clerk. An Authorized Officer is hereby authorized and directed to approve any changes in or additions to said preliminary Official Statement, and to execute an appropriate certificate stating the City’s determination that the preliminary Official Statement (together with any changes therein or additions thereto) has been deemed nearly final within the meaning of Rule 15c2-12 of the Securities Exchange Act of 1934. Distribution of the preliminary Official Statement by the Underwriter is hereby approved. An Authorized Officer is hereby authorized and directed to approve any changes in or additions to a final form of said Official Statement, and the execution thereof by an Authorized Officer shall be conclusive evidence of approval of any such changes and additions. The Council hereby authorizes the distribution of the final Official Statement by the Underwriter. The final Official Statement shall be executed on behalf of the City by an Authorized Officer. Section 5. The firm of NHA Advisors LLC is hereby retained as municipal advisor to the City in connection with the issuance and sale of the Bonds by the Authority. An Authorized Officer is authorized to execute an agreement with said firm in a form as approved by an Authorized Officer, as necessary. Section 6. The firm of Jones Hall, A Professional Law Corporation, is hereby retained as bond counsel and disclosure counsel to the City in connection with the issuance and sale of the Bonds by the Authority. An Authorized Officer is authorized to execute an agreement with said firm in a form as approved by an Authorized Officer, as necessary. Section 7. The Authorized Officers, the City Attorney, the City Clerk and all other officers of the City are each authorized and directed on behalf of the City to make any and all leases, assignments, certificates, requisitions, agreements, notices, consents, instruments of conveyance or termination, warrants and other documents, which they or any of them deem necessary or appropriate in order to consummate any of the transactions contemplated by the agreements and documents approved under this Resolution. An Authorized Officer may revise the identity of the Leased Property (including by adding thereto) as necessary in order to accomplish the purposes of this Resolution. Whenever in this Resolution any officer of the City is authorized to execute or countersign any document or take any action, such execution, countersigning or action may be taken on behalf of such officer by any person designated by such officer to act on his or her behalf in the case such officer is absent or unavailable. Attachment 1 Page 245 of 858 -4- Section 8. This Resolution shall take effect immediately upon its passage and adoption. * * * * * * * * * PASSED AND ADOPTED by the City Council of the City of Ukiah on __________, 2022 by the following vote: AYES: NOES: ABSENT: ABSTAIN: __________________________ Jim Brown, Mayor ATTEST: __________________________ Kristine Lawler, City Clerk Attachment 1 Page 246 of 858 RESOLUTION NO. PFA 2022-____ A RESOLUTION OF THE BOARD OF DIRECTORS OF THE UKIAH PUBLIC FINANCING AUTHORITY AUTHORIZING THE ISSUANCE AND SALE OF LEASE REVENUE BONDS TO FINANCE PUBLIC CAPITAL IMPROVEMENTS, AND APPROVING RELATED DOCUMENTS AND OFFICIAL ACTIONS RELATED THERETO WHEREAS, the Ukiah Public Financing Authority (the “Authority”) was formed to, among other things, assist the City of Ukiah (the “City”) with financing public capital improvements, including capital projects of the City; and WHEREAS, the City desires to renovate its Corporation Yard and construct improvements to various City streets (collectively, the “Project”); and WHEREAS, in order to provide financing for the Project, the City has agreed to lease certain real property, consisting of certain city streets (the “Leased Property”), to the Authority as provided in a Site Lease, as defined herein; and WHEREAS, in order to fund its payment obligation under the Site Lease, the Authority proposes to issue and sell its Lease Revenue Bonds, Series 2022 (Capital Projects) (the “Bonds”) under Article 4 of Chapter 5, Division 7, Title 1 of the Government Code of the State of California, commencing with Section 6584 of said Code (the “Bond Law”); and WHEREAS, in order to secure the payments of principal of and interest on the Bonds, the Authority proposes to lease the Leased Property back to the City under a Lease Agreement (the “Lease Agreement”), under which the City is obligated to pay semiannual lease payments as rental for the Leased Property, and the Authority will assign substantially all of its rights under the Lease Agreement to The Bank of New York Mellon Trust Company, National Association, as trustee for the Bonds; and WHEREAS, to provide for development of the most favorable debt structure for the City and to ensure the most favorable reception in the marketplace for the Bonds, the City has requested the Authority to sell the Bonds through a negotiated sale pursuant to the terms of a Bond Purchase Agreement (the “Bond Purchase Agreement”) between the Authority, the City and Piper Sandler & Co. as underwriter (the “Underwriter”); and WHEREAS, for purposes of the sale of the Bonds, the City has caused to be prepared an Official Statement describing the Bonds, the preliminary form of which is on file with the Secretary and the Board of Directors, with the aid of their staff, have undertaken such review of the Official Statement as hereinafter described as is necessary to assure proper disclosure of all material facts relating to the Bonds that are within the personal knowledge of members of the Board of Directors and the staff; and WHEREAS, as required by Section 6586.5 of the California Government Code, the City has caused publication of a notice of a public hearing on the financing of the public capital improvements included within the Project once at least five (5) days prior to the hearing in a newspaper of general circulation in the City; and Attachment 2 Page 247 of 858 - 2 - WHEREAS, the City Council of the City held a public hearing at which all interested persons were provided the opportunity to speak on the subject of financing such public capital improvements; and WEREAS, the information required to be obtained and disclosed by the Board of Directors related to the Bonds pursuant to Government Code Section 5852.1 is set forth in the staff report accompanying this Resolution; and WHEREAS, the Board wishes at this time to approve all proceedings of the Authority relating to the foregoing. NOW, THEREFORE, IT IS HEREBY DETERMINED AND RESOLVED BY THE BOARD OF DIRECTORS OF THE UKIAH PUBLIC FINANCING AUTHORITY AS FOLLOWS: Section 1. The Board of Directors hereby authorizes the issuance of the Bonds under the Bond Law in a maximum principal amount not to exceed $48,000,000, for the purpose of financing the Project. The Bonds shall be issued under the Bond Law and the Indenture of Trust that is approved below. Section 2. The Board hereby approves each of the following agreements required for the issuance and sale of the Bonds, in substantially the respective forms on file with the Secretary together with any changes therein or additions thereto deemed advisable by the Chair, Vice Chair, Executive Director, Treasurer, or a designee appointed by such person (each, an “Authorized Officer”), whose execution thereof shall be conclusive evidence of the approval of any such changes or additions. Such changes or additions may include, but is not limited to, providing that payment of the Bonds be insured by a financial guaranty policy from a bond insurance company and/or secured by a reserve surety policy, if in the judgment of an Authorized Officer such insurance and/or reserve surety policy is in the best interest of the Authority. An Authorized Officer is hereby authorized and directed for and on behalf of the Authority to execute, and the Secretary is hereby authorized and directed to attest, the final form of each such agreement, as follows: • Indenture of Trust, between the Authority and The Bank of New York Mellon Trust Company, National Association, as trustee (the “Trustee”), setting forth the terms and provisions relating to the Bonds; • Site Lease, between the City as lessor and the Authority as lessee, under which the City leases the Leased Property to the Authority in consideration of the payment of an upfront amount which will be applied by the City to the Project; • Lease Agreement, between the Authority as lessor and the City as lessee, under which the Authority leases the Leased Property back to the City and the City agrees to pay semiannual lease payments to provide revenues with which to pay principal of and interest on the Bonds when due; and Attachment 2 Page 248 of 858 - 3 - • Assignment Agreement, between the Authority and the Trustee, whereby the Authority assigns certain of its rights under the Lease Agreement to the Trustee for the benefit of the Bond owners. Section 3. The Board of Directors hereby authorizes and directs the negotiated sale of the Bonds to the Underwriter. The Bonds shall be sold pursuant to the terms and provisions of the Bond Purchase Agreement among the Authority, the City and the Underwriter in substantially the form on file with the Secretary together with any changes therein or additions thereto deemed advisable by an Authorized Officer. The principal amount of the Bonds and related principal obligation of the Authority under the Site Lease Agreement shall not exceed $48,000,000, the true interest cost of the Bonds shall not exceed 3.25% and the Underwriter’s discount shall not exceed 0.7%. Section 4. The Board of Directors hereby approves the preliminary Official Statement describing the Bonds in substantially the form on file with the Secretary. An Authorized Officer is hereby authorized and directed to approve any changes in or additions to said preliminary Official Statement and, if requested by the Underwriter, to execute an appropriate certificate stating the Authority’s determination that the preliminary Official Statement (together with any changes therein or additions thereto) has been deemed nearly final within the meaning of Rule 15c2-12 of the Securities Exchange Act of 1934. Distribution of the preliminary Official Statement by the Underwriter is hereby approved. An Authorized Officer is hereby authorized and directed to approve any changes in or additions to a final form of said Official Statement, and the execution thereof by an Authorized Officer shall be conclusive evidence of approval of any such changes and additions. The Board of Directors hereby authorizes the distribution of the final Official Statement by the Underwriter. The final Official Statement shall be executed on behalf of the Authority by the Chair or an Authorized Officer. Section 5. The Authorized Officers, the General Counsel to the Authority, the Secretary and all other officers of the Authority are each authorized and directed on behalf of the Authority to make any and all leases, assignments, certificates, requisitions, agreements, notices, consents, instruments of conveyance or termination, warrants and other documents, which they or any of them deem necessary or appropriate in order to consummate any of the transactions contemplated by the agreements and documents approved under this Resolution. An Authorized Officer may revise the identity of the Leased Property (including by adding thereto) as necessary to accomplish the purposes of this Resolution. Whenever in this resolution any officer of the Authority is authorized to execute or countersign any document or take any action, such execution, countersigning or action may be taken on behalf of such officer by any person designated by such officer to act on his or her behalf if such officer is absent or unavailable. Section 6. This Resolution shall take effect immediately upon its passage and adoption. * * * * * * * * * THE FOREGOING RESOLUTION WAS PASSED AND ADOPTED by the Board of Directors of the Ukiah Public Financing Authority at a regular meeting held on this _____________, 2022 by the following roll call vote: AYES: Attachment 2 Page 249 of 858 - 4 - NOES: ABSENT: ABSTAIN: __________________________ Jim Brown, Chair of the Ukiah Public Financing Authority ATTEST: __________________________ Kristine Lawler, Secretary of the Ukiah Public Financing Authority Attachment 2 Page 250 of 858 Jones Hall Draft 1.11.22 SITE LEASE Dated as of February 1, 2022 between the CITY OF UKIAH, as lessor and the UKIAH PUBLIC FINANCING AUTHORITY, as lessee Relating to $______________ Ukiah Public Financing Authority Lease Revenue Bonds, Series 2022 (Capital Projects) Attachment 3 Page 251 of 858 SITE LEASE This SITE LEASE (this “Site Lease”), dated for convenience as of February 1, 2022, is between the CITY OF UKIAH, a municipal corporation duly organized and existing under the laws of the State of California, as lessor, which acquired a portion of the Leased Property as the City of Ukiah, California, a municipal corporation (a political subdivision organized and existing under the laws of the State of California) (the “City”), and the UKIAH PUBLIC FINANCING AUTHORITY, a joint exercise of powers authority organized and existing under the laws of the State of California, as lessee (the “Authority”). BACKGROUND: 1. The City is proceeding to reconstruct its corporation yard and construct improvements to various City streets (collectively, the “Project”). 2. In order to provide funds to finance a portion of the costs of the Project, the City has agreed to lease the real property more particularly described in Appendix A attached hereto and by this reference incorporated herein, consisting of streets in the City (the “Leased Property”) to the Authority under this Site Lease, pursuant to which the Authority agrees to make an initial rental payment (as described herein, the “Site Lease Payment”) which is sufficient to provide funds for such purposes. 3. The Authority has authorized the issuance of its Ukiah Public Financing Authority Lease Revenue Bonds, Series 2022 (Capital Projects) in the aggregate principal amount of $__________ (the “Bonds”) under an Indenture of Trust dated as of February 1, 2022 (the “Indenture”), between the Authority and The Bank of New York Mellon Trust Company, N.A., as trustee (the “Trustee”), for the purpose of providing the funds to enable the Authority to pay the Site Lease Payment to the City in accordance with this Site Lease. 4. In order to provide revenues which are sufficient to enable the Authority to pay debt service on the Bonds, the Authority has agreed to lease the Leased Property back to the City under a Lease Agreement dated as of February 1, 2022 (the “Lease”), which has been executed concurrently herewith, under which the City has agreed to pay semiannual Lease Payments as the rental for the Leased Property thereunder. 5. The lease payments made by the City under the Lease have been assigned by the Authority to Trustee for the security of the Bonds under an Assignment Agreement dated as of February 1, 2022, between the Authority as assignor and the Trustee as assignee, which has been executed concurrently herewith. Attachment 3 Page 252 of 858 -2- AGREEMENT: In consideration of the above premises and of the mutual promises and covenants herein contained and for other valuable consideration, the parties hereto do hereby agree as follows: SECTION 1. Lease of Property to Authority. The City hereby leases the Leased Property to the Authority and the Authority hereby leases the Leased Property from the City, on the terms and conditions hereinafter set forth. SECTION 2. Term; Possession. The term of this Site Lease commences on the Closing Date and ends on the date on which the Indenture is discharged in accordance with Section 13.01 thereof, but under any circumstances not later than April 1, _____. The provisions of this Section 2 are subject in all respects to any other provisions of this Site Lease relating to the termination hereof. SECTION 3. Rental. The Authority shall pay to the City as and for rental of the Leased Property hereunder, the sum of $_________ (the “Site Lease Payment”). The Site Lease Payment is due and payable upon the issuance of the Bonds and the execution and delivery hereof, and will be paid from the proceeds of the Bonds. The Authority and the City hereby find and determine that the total amount of the Site Lease Payment does not exceed the fair market value of the leasehold interest in the Leased Property which is conveyed hereunder by the City to the Authority. No other amount of rental is due and payable by the Authority for the use and occupancy of the Leased Property under this Site Lease. As provided in the Indenture, a portion of the proceeds of the Bonds will be applied to make the Site Lease Payment by depositing the full amount thereof into the Project Fund which is held and administered by the City under the Indenture. Amounts on deposit in the Project Fund shall be disbursed by the City from time to time for the purpose of paying Project Costs in accordance with the Indenture. SECTION 4. Leaseback to City. The Authority shall lease the Leased Property back to the City under the Lease. SECTION 5. Assignments and Subleases. Unless the City is in default under the Lease, the Authority may not assign its rights under this Site Lease or sublet all or any portion of the Leased Property, except as provided in the Assignment Agreement and in the Lease, without the prior written consent of the City. SECTION 6. Substitution or Release of Property. If the City exercises its option under Section 3.3 of the Lease to substitute property for the Leased Property in whole or in part, such substitution shall also operate to substitute property for the Leased Property which is leased hereunder. If the City exercises its option under Section 3.4 of the Lease to release a portion of the Leased Property from the Lease, such substitution shall also operate to release such portion of the Leased Property hereunder. The description of the Leased Property which is leased under the Lease shall conform at all times to the description of the Leased Property which is leased hereunder. SECTION 7. Right of Entry. The City reserves the right for any of its duly authorized representatives to enter upon the Leased Property, or any portion thereof, at Attachment 3 Page 253 of 858 -3- any reasonable time to inspect the same or to make any repairs, improvements or changes necessary for the preservation thereof. SECTION 8. Termination. The Authority agrees, upon the termination of this Site Lease, to quit and surrender the Leased Property in the same good order and condition as the Leased Property was in at the time of commencement of the term hereof, reasonable wear and tear excepted, and agrees that all buildings, improvements and structures then existing upon the Leased Property shall remain thereon and title thereto shall vest thereupon in the City for no additional consideration. SECTION 9. Default. If the Authority defaults in the performance of any obligation on its part to be performed under the terms of this Site Lease, which default continues for 30 days following notice and demand for correction thereof to the Authority, the City may exercise any and all remedies granted by law, except that no merger of this Site Lease and of the Lease shall be deemed to occur as a result thereof and no such remedy may include termination hereof; provided, however, that so long as the Lease remains in effect, the Lease Payments payable by the City under the Lease shall continue to be paid to the Trustee. SECTION 10. Quiet Enjoyment. The Authority at all times during the term of this Site Lease shall peaceably and quietly have, hold and enjoy all of the Leased Property, subject to the provisions of the Lease and subject only to Permitted Encumbrances (as that term is defined in the Lease). SECTION 11. Waiver of Personal Liability. All liabilities under this Site Lease on the part of the Authority are solely corporate liabilities of the Authority as a public entity, and the City hereby releases each and every member and officer of the Authority of and from any personal or individual liability under this Site Lease. No member or officer of the Authority or its governing board 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 Authority hereunder. SECTION 12. Taxes. The City covenants and agrees to pay any and all assessments of any kind or character and also all taxes, including possessory interest taxes, levied or assessed upon the Leased Property and any improvements thereon. SECTION 13. Eminent Domain. If the whole or any part of the Leased Property or any improvements thereon is taken by eminent domain proceedings, the interest of the Authority shall be recognized and is hereby determined to be the amount of the then unpaid Lease Payments payable under the Lease and the balance of the award, if any, shall be paid to the City. SECTION 14. 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 or 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. Attachment 3 Page 254 of 858 -4- SECTION 15. Notices. Any notice, request, complaint, demand or other communication under this Site Lease shall be given by first class mail or personal delivery to the party entitled thereto at its address set forth below, or by telecopy, telex or other form of telecommunication, at its number set forth below. Notice shall be effective either (a) upon transmission by telecopy, telex or other form of telecommunication, (b) 48 hours after deposit in the United States mail, postage prepaid, or (c) in the case of personal delivery to any person, upon actual receipt. The City, the Authority and the Trustee 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 City City of Ukiah or the Authority: Attention: Finance Director 300 Seminary Avenue Ukiah, CA 95482 If to the Trustee: The Bank of New York Mellon Trust Company, N.A. Attention: Corporate Trust Administration 333 S. Hope Street, Suite #2525 Los Angeles, California 90071 SECTION 16. Amendment of this Site Lease. The Authority and the City may at any time amend or modify any of the provisions of this Site Lease, but only (a) with the prior written consent of the Owners of a majority in aggregate principal amount of the Outstanding Bonds; or (b) without the consent of any of the Bond Owners, but only if such amendment or modification is for any one or more of the following purposes: (i) to make cure any ambiguity, or to cure, correct or supplement any defective provision contained herein, or in any other respect whatsoever as the Authority and the City may deem necessary or desirable, provided that, in the opinion of Bond Counsel, such modifications or amendments do not materially adversely affect the interests of the Owners of the Bonds; (ii) to amend any provision hereof relating to the Tax Code, to any extent whatsoever but only if and to the extent such amendment will not adversely affect the exclusion from gross income of interest on the Bonds under the Tax Code, in the opinion of Bond Counsel; (iii) to conform to any amendment of the Indenture which is made thereto in accordance with Section 9.01 of the Indenture; or (iv) for the purpose of effectuating any substitution or release of property under Section 6. SECTION 17. Governing Law. This Site Lease shall be construed in accordance with and governed by the laws of the State of California. SECTION 18. Third Party Beneficiary. The Trustee is hereby made a third party beneficiary under this Site Lease with all rights of a third party beneficiary. Attachment 3 Page 255 of 858 -5- SECTION 19. Binding Effect. This Site Lease inures to the benefit of and is binding upon the Authority, the City and their respective successors and assigns, subject, however, to the limitations contained herein. 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. 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 lease. It is also agreed that separate counterparts of this Site Lease may be separately executed by the Authority and the City, all with the same force and effect as though the same counterpart had been executed by both the Authority and the City. SECTION 22. Defined Terms. All capitalized terms used herein and not otherwise defined have the respective meanings given those terms in the Indenture. Attachment 3 Page 256 of 858 [Signature Page to Site Lease dated as of February 1, 2022] IN WITNESS WHEREOF, the City and the Authority 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. UKIAH PUBLIC FINANCING AUTHORITY as Lessor By: Daniel Buffalo Treasurer CITY OF UKIAH as Lessee By: Daniel Buffalo Finance Director Attachment 3 Page 257 of 858 A-1 APPENDIX A DESCRIPTION OF THE LEASED PROPERTY The Leased Property consists of that certain real property, together with all fixtures, equipment or other improvements located upon the real property, except as to the library as excluded below, situated in the City of Ukiah, County of Mendocino, State of California, described as follows: [[All City Streets]] Attachment 3 Page 258 of 858 Jones Hall Draft 1.11.22 LEASE AGREEMENT Dated as of February 1, 2022 between the UKIAH PUBLIC FINANCING AUTHORITY, as lessor and the CITY OF UKIAH, as lessee Relating to $______________ Ukiah Public Financing Authority Lease Revenue Bonds, Series 2022 (Capital Projects) Attachment 4 Page 259 of 858 -i- TABLE OF CONTENTS ARTICLE I: DEFINITIONS; RULES OF INTERPRETATION: SECTION 1.1. Definitions .................................................................................................................... 2 SECTION 1.2. Interpretation ................................................................................................................ 2 ARTICLE II: COVENANTS, REPRESENTATIONS AND WARRANTIES: SECTION 2.1. Covenants, Representations and Warranties of the City ............................................. 3 SECTION 2.2. Covenants, Representations and Warranties of the Board .......................................... 4 ARTICLE III: DEPOSIT AND APPLICATION OF FUNDS; SUBSTITUTION AND RELEASE OF PROPERTY SECTION 3.1. Deposit of Moneys ....................................................................................................... 5 SECTION 3.2. Acquisition and Construction of Project ....................................................................... 5 SECTION 3.3. Substitution of Property ................................................................................................ 6 SECTION 3.4. Release of Property ..................................................................................................... 6 ARTICLE IV: LEASE OF LEASED PROPERTY; TERM OF THIS LEASE; LEASE PAYMENTS: SECTION 4.1. Lease of Leased Property ............................................................................................ 7 SECTION 4.2. Term ............................................................................................................................. 7 SECTION 4.3. Lease Payments .......................................................................................................... 7 SECTION 4.4. Source of Payments; Covenant to Budget and Appropriate ........................................ 8 SECTION 4.5. Additional Rental Payments ......................................................................................... 9 SECTION 4.6. Quiet Enjoyment .......................................................................................................... 9 SECTION 4.7. Title .............................................................................................................................. 9 ARTICLE V: MAINTENANCE; TAXES; INSURANCE; AND OTHER MATTERS: SECTION 5.1. Maintenance, Utilities, Taxes and Assessments ........................................................ 10 SECTION 5.2. Modification of Leased Property ................................................................................ 10 SECTION 5.3. Liability Insurance ...................................................................................................... 11 SECTION 5.4. Property Insurance ..................................................................................................... 11 SECTION 5.5. Insurance Net Proceeds; Form of Policies ................................................................. 11 SECTION 5.6. Installation of City’s Personal Property ...................................................................... 12 SECTION 5.7. Advances ................................................................................................................... 12 ARTICLE VI: DAMAGE, DESTRUCTION AND EMINENT DOMAIN; USE OF NET PROCEEDS: SECTION 6.1. Application of Net Proceeds ....................................................................................... 12 SECTION 6.2. Termination or Abatement Due to Eminent Domain .................................................. 12 SECTION 6.3. Abatement Due to Damage or Destruction ................................................................ 13 ARTICLE VII: OTHER COVENANTS OF THE CITY: SECTION 7.1. Disclaimer of Warranties ............................................................................................ 13 SECTION 7.2. Access to the Leased Property .................................................................................. 13 SECTION 7.3. Release and Indemnification Covenants ................................................................... 14 SECTION 7.4. Assignment and Subleasing by the City .................................................................... 14 SECTION 7.5. Amendment Hereof .................................................................................................... 15 Attachment 4 Page 260 of 858 -ii- SECTION 7.6. Tax Covenants ........................................................................................................... 16 SECTION 7.7. Continuing Disclosure ................................................................................................ 16 ARTICLE VIII: EVENTS OF DEFAULT AND REMEDIES: SECTION 8.1. Events of Default Defined .......................................................................................... 17 SECTION 8.2. Remedies on Default ................................................................................................. 17 SECTION 8.3. No Remedy Exclusive ................................................................................................ 18 SECTION 8.4. Agreement to Pay Attorneys' Fees and Expenses ..................................................... 18 SECTION 8.5. No Additional Waiver Implied by One Waiver ............................................................ 18 SECTION 8.6. Application of Proceeds ............................................................................................. 18 SECTION 8.7. Trustee and Bond Owners to Exercise Rights ........................................................... 18 ARTICLE IX: PREPAYMENT OF LEASE PAYMENTS: SECTION 9.1. Security Deposit ......................................................................................................... 19 SECTION 9.2. Prepayment ................................................................................................................ 19 SECTION 9.3. Mandatory Prepayment From Net Proceeds of Insurance or Eminent Domain ....................................................................................................................... 19 SECTION 9.4. Credit for Amounts on Deposit ................................................................................... 20 ARTICLE X: MISCELLANEOUS: SECTION 10.1. Notices ....................................................................................................................... 20 SECTION 10.2. Binding Effect ............................................................................................................. 20 SECTION 10.3. Severability ................................................................................................................ 20 SECTION 10.4. Net-net-net Lease ...................................................................................................... 20 SECTION 10.5. Third Party Beneficiary ............................................................................................... 20 SECTION 10.6. Further Assurances and Corrective Instruments ....................................................... 21 SECTION 10.7. Execution in Counterparts. ......................................................................................... 21 SECTION 10.8. Applicable Law ........................................................................................................... 21 SECTION 10.9. Board and City Representatives ................................................................................ 21 SECTION 10.10. Captions ..................................................................................................................... 21 APPENDIX A DESCRIPTION OF THE LEASED PROPERTY APPENDIX B SCHEDULE OF LEASE PAYMENTS Attachment 4 Page 261 of 858 LEASE AGREEMENT This LEASE AGREEMENT (this “Lease”), dated for convenience as of February 1, 2022, is between the UKIAH PUBLIC FINANCING AUTHORITY, a joint exercise of powers authority organized and existing under the laws of the State of California, as lessor (the “Authority”), and the CITY OF UKIAH, a municipal corporation duly organized and existing under the laws of the State of California, as lessee (the “City”). BACKGROUND: 1. The City is proceeding to reconstruct its corporation yard and construct improvements to various City streets (collectively, the “Project”). 2. In order to provide funds to finance a portion of the costs of the Project, the City has agreed to lease the real property more particularly described in Appendix A attached hereto and by this reference incorporated herein, consisting of streets in the City (the “Leased Property”) to the Authority under a Site Lease dated as of February 1, 2022 which has been executed concurrently herewith (the “Site Lease”), under which the Authority agrees to make an initial rental payment (the “Site Lease Payment”) which is sufficient to provide funds for such purposes. The Leased Property is also subject to a lease entered into by the City (the “2020 Lease”) in connection with the Authority’s Lease Revenue Bonds, Series 2020A and Taxable Lease Revenue Bonds, Series 2020B, outstanding in the combined principal amount of $52,250,000 (the “2020 Bonds”). 3. The Authority has authorized the issuance of its Ukiah Public Financing Authority Lease Revenue Bonds, Series 2022 (Capital Projects) in the aggregate principal amount of $__________ (the “Bonds”) under an Indenture of Trust dated as of February 1, 2022 (the “Indenture”), between the Authority and The Bank of New York Mellon Trust Company, N.A., as trustee (the “Trustee”), and under the provisions of Article 4 of Chapter 5, Division 7, Title 1 of the Government Code of the State of California, commencing with Section 6584 of said Code (the “Bond Law”), for the purpose of providing the funds to enable the Authority to pay the Site Lease Payment to the City in accordance with the Site Lease. 4. In order to provide revenues which are sufficient to enable the Authority to pay debt service on the Bonds, the Authority has agreed to lease the Leased Property back to the City under this Lease, under which the City agrees to pay semiannual Lease Payments as the rental for the Leased Property hereunder. 5. The lease payments made by the City under this Lease have been assigned by the Authority to the Trustee for the security of the Bonds under an Assignment Agreement dated as of February 1, 2022, between the Authority as assignor and the Trustee as assignee, which has been executed concurrently herewith. 6. The City and the Authority have found and determined that all acts and proceedings required by law necessary to make this Lease, when executed by the City and the Authority, the valid, binding and legal obligations of the City and the Authority, Attachment 4 Page 262 of 858 -2- and to constitute this Lease a valid and binding agreement for the uses and purposes herein set forth in accordance with its terms, have been done and taken, and the execution and delivery of this Lease have been in all respects duly authorized. AGREEMENT: In consideration of the material covenants contained in this Lease, the parties hereto hereby formally covenant, agree and bind themselves as follows: ARTICLE I DEFINITIONS; RULES OF INTERPRETATION SECTION 1.1. Definitions. Unless the context clearly otherwise requires or unless otherwise defined herein, the capitalized terms in this Lease have the respective meanings given them in the Indenture. SECTION 1.2. Interpretation. (a) Unless the context otherwise indicates, words expressed in the singular includes the plural and vice versa and the use of the neuter, masculine, or feminine gender is for convenience only and includes 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; the words “herein,” “hereof,” “hereby,” “hereunder” and other words of similar import refer to this Lease as a whole and not to any particular Article, Section or subdivision hereof. Attachment 4 Page 263 of 858 -3- ARTICLE II COVENANTS, REPRESENTATIONS AND WARRANTIES SECTION 2.1. Covenants, Representations and Warranties of the City. The City makes the following covenants, representations and warranties to the Authority and the Trustee as of the date of the execution and delivery of this Lease: (a) Due Organization and Existence. The City is a municipal corporation duly organized and validly existing under the laws of the State of California, has full legal right, power and authority under the laws of the State of California to enter into the Site Lease and this Lease and to carry out and consummate all transactions contemplated hereby, and by proper action the City has duly authorized the execution and delivery of the Site Lease and this Lease. (b) Due Execution. The representatives of the City executing the Site Lease and this Lease have been fully authorized to execute the same under a resolution duly adopted by the City Council of the City. (c) Valid, Binding and Enforceable Obligations. The Site Lease and this Lease have been duly authorized, executed and delivered by the City and constitute the legal, valid and binding obligations of the City enforceable against the City in accordance with their respective terms. (d) No Conflicts. The execution and delivery of the Site Lease and this Lease, 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 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 City 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 City, 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 and this Lease or the financial condition, assets, properties or operations of the City. (e) Consents and Approvals. No consent or approval of any trustee or holder of any indebtedness of the City or of the voters of the City, 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, 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. There is no action, suit, proceeding, inquiry or investigation before or by any court or federal, state, municipal or other governmental Attachment 4 Page 264 of 858 -4- authority pending or, to the knowledge of the City after reasonable investigation, threatened against or affecting the City or the assets, properties or operations of the City which, if determined adversely to the City 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 and this Lease, or upon the financial condition, assets, properties or operations of the City, and the City 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 and this Lease or the financial conditions, assets, properties or operations of the City. SECTION 2.2. Covenants, Representations and Warranties of the Authority. The Authority makes the following covenants, representations and warranties to the City and the Trustee as of the date of the execution and delivery of this Lease: (a) Due Organization and Existence. The Authority is a public body corporate and politic duly organized and existing under the Bond Law and under the laws of the State of California; has power to enter into this Lease, the Site Lease, the Assignment Agreement and the Indenture; is possessed of full power to own and hold, improve and equip real and personal property, and to lease the same; and has duly authorized the execution and delivery of each of the aforesaid agreements and such agreements constitute the legal, valid and binding obligations of the Authority, enforceable against the Authority in accordance with their respective terms. (b) Due Execution. The representatives of the Authority executing this Lease, the Site Lease, the Assignment Agreement and the Indenture are fully authorized to execute the same pursuant to official action taken by the governing body of the Authority. (c) Valid, Binding and Enforceable Obligations. This Lease, the Site Lease, the Assignment Agreement and the Indenture have been duly authorized, executed and delivered by the Authority and constitute the legal, valid and binding agreements of the Authority, enforceable against the Authority in accordance with their respective terms. (d) No Conflicts. The execution and delivery of this Lease, the Site Lease, the Assignment Agreement and the Indenture, the consummation of the transactions herein and therein contemplated and the fulfillment of or compliance with the terms and conditions hereof, do not and will not conflict with or constitute a 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 Authority 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 Authority, which conflict, violation, breach, Attachment 4 Page 265 of 858 -5- default, lien, charge or encumbrance would have consequences that would materially and adversely affect the consummation of the transactions contemplated by this Lease, the Site Lease, the Assignment Agreement and the Indenture or the financial condition, assets, properties or operations of the Authority. (e) Consents and Approvals. No consent or approval of any trustee or holder of any indebtedness of the Authority, 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 this Lease, the Site Lease, the Assignment Agreement or the Indenture, 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. (f) No Litigation. There is no action, suit, proceeding, inquiry or investigation before or by any court or federal, state, municipal or other governmental authority pending or, to the knowledge of the Authority after reasonable investigation, threatened against or affecting the Authority or the assets, properties or operations of the Authority which, if determined adversely to the Authority or its interests, would have a material and adverse effect upon the consummation of the transactions contemplated by or the validity of this Lease, the Site Lease, the Assignment Agreement or the Indenture, or upon the financial condition, assets, properties or operations of the Authority, and the Authority 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, the Site Lease, the Assignment Agreement or the Indenture or the financial conditions, assets, properties or operations of the Authority. ARTICLE III DEPOSIT AND APPLICATION OF FUNDS; SUBSTITUTION AND RELEASE OF PROPERTY SECTION 3.1. Deposit of Moneys. On the Closing Date, the Authority will cause the proceeds of sale of the Bonds to be deposited with the Trustee. The Trustee shall deposit those proceeds in accordance with Section 3.01 of the Indenture. SECTION 3.2. Acquisition and Construction of Project. As provided in Section 3.02 of the Indenture, a portion of the proceeds of sale of the Bonds will be applied to pay the Site Lease Payment to the City in accordance with Section 3 of the Site Lease. The Site Lease Payment shall be deposited into the Project Fund, which is established under the Indenture, to be disbursed for the purpose of paying Project Costs. Upon the completion of the Project, the City shall file a Written Certificate of the City with the Trustee, which Written Certificate shall identify the amount (if any) to be retained in the Project Fund to pay remaining Project Costs. Attachment 4 Page 266 of 858 -6- SECTION 3.3. Substitution of Property. The City has the option at any time and from time to time, to substitute other real property (the “Substitute Property”) for the Leased 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: (a) No Event of Default has occurred and is continuing. (b) The City has filed with the Authority and the Trustee sufficient memorialization of an amendment of this Lease, the Site Lease and the Assignment Agreement, which adds the legal description of the Substitute Property to Appendix A and deletes therefrom the legal description of the Former Property. (c) The City has certified in writing to the Authority and the Trustee that the Substitute Property serves the municipal purposes of the City and constitutes property which the City is permitted to lease under the laws of the State of California, and has been determined to be important to the proper, efficient and economic operation of the City and to serve a proper governmental function of the City. (d) The Substitute Property does not cause the City to violate any of its covenants, representations and warranties made herein. (e) The City has filed with the Authority and the Trustee a written certificate of the City or other written evidence stating that the estimated fair rental value of the Leased Property following the substitution will be at least equal to the aggregate principal amount of the Bonds then outstanding, and that the useful life of the Substitute Property at least extends to the stated termination date of this Lease. Upon the satisfaction of all such conditions precedent, the Term of this Lease 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 City 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 Authority and the City will execute and deliver all documents required to discharge the Site Lease, this Lease 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 and the Assignment Agreement. SECTION 3.4. Release of Property. The City has the option at any time and from time to time to release any portion of the Leased Property from this Lease (the “Released Property”) provided that the City has satisfied all of the following requirements which are hereby declared to be conditions precedent to such release: (a) No Event of Default has occurred and is continuing. Attachment 4 Page 267 of 858 -7- (b) The City has filed with the Authority and the Trustee, and caused to be recorded in the office of the Mendocino County Recorder, sufficient memorialization of an amendment of this Lease, the Site Lease and the Assignment Agreement, which removes the Released Property therefrom. (c) The City has certified in writing to the Authority and the Trustee that the value of the property which remains subject to this Lease following such release is at least equal to the then outstanding principal amount of the Bonds, and the fair rental value of the property which remains subject to this Lease following such release is at least equal to the Lease Payments thereafter coming due and payable hereunder. Upon the satisfaction of all such conditions precedent, the Term of this Lease will thereupon end as to the Released Property. The City is not entitled to any reduction, diminution, extension or other modification of the Lease Payments whatsoever as a result of such release. The Authority and the City shall execute and deliver all documents required to discharge the Site Lease, this Lease and the Assignment Agreement of record against the Released Property. ARTICLE IV LEASE OF LEASED PROPERTY; TERM OF THIS LEASE; LEASE PAYMENTS SECTION 4.1. Lease of Leased Property. The Authority hereby leases the Leased Property to the City and the City hereby leases the Leased Property from the Authority, upon the terms and conditions set forth in this Lease. SECTION 4.2. Term. The Term of this Lease commences on the Closing Date and ends on the date on which the Indenture is discharged in accordance with Section 10.01 thereof, but under any circumstances not later than April 1, ______. The provisions of this Section are subject to the provisions of Section 6.2 relating to abatement and the taking in eminent domain of the Leased Property in whole or in part. SECTION 4.3. Lease Payments. (a) Obligation to Pay. Subject to the provisions of Sections 6.2 and 6.3 and the provisions of Article IX, the City agrees to pay to the Authority, its successors and assigns, the Lease Payments in the respective amounts specified in Appendix B attached to this Lease, to be due and payable in immediately available funds on the Interest Payment Dates immediately following each of the respective Lease Payment Dates specified in Appendix B, and to be deposited by the City with the Trustee on each of the Lease Payment Dates specified in Appendix B. Any amount held in the Bond Fund, the Interest Account and the Principal Account on any Lease Payment Date (other than amounts resulting from the prepayment of the Lease Payments in part but not in whole under Article IX, and amounts required for payment of past due principal or interest on any Bonds not presented for payment) will be credited towards the Lease Payment then required to be paid hereunder. The City is not required to deposit any Lease Payment with the Trustee on any Lease Payment Date if the amounts then held in Attachment 4 Page 268 of 858 -8- the Bond Fund, the Interest Account and the Principal Account are at least equal to the Lease Payment then required to be deposited with the Trustee. The Lease Payments payable in any Rental Period are for the use of the Leased Property during that Rental Period. (b) Effect of Prepayment. If the City prepays all Lease Payments in full under Section 9.2, the City’s obligations under this Section will thereupon cease and terminate. If the City prepays the Lease Payments in part but not in whole under Section 9.2, the principal components of the remaining Lease Payments will be reduced in integral multiples of $5,000 among Lease Payment Dates on a basis which corresponds to the principal maturities of the Bonds which are redeemed thereby; and the interest component of each remaining Lease Payment will be reduced by the aggregate corresponding amount of interest which would otherwise be payable with respect to the Bonds thereby redeemed under Section 4.01 of the Indenture. (c) Rate on Overdue Payments. If the City fails to make any of the payments required in this Section, the payment in default will continue as an obligation of the City until the amount in default has been fully paid, and the City agrees to pay the same with interest thereon, from the date of default to the date of payment at the highest rate of interest on any Outstanding Bond. (d) Fair Rental Value. The aggregate amount of the Lease Payments and Additional Rental Payments coming due and payable during each Rental Period constitute the total rental for the Leased Property for such Rental Period, and are payable by the City 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 Leased Property during each Rental Period. The parties hereto have agreed and determined that the total Lease Payments represent the fair rental value of the Leased Property. In making that determination, consideration has been given to the estimated value of the Leased Property, other obligations of the City and the Authority under this Lease, the uses and purposes which may be served by the Leased Property and the benefits therefrom which will accrue to the City and the general public. (e) Assignment. The City understands and agrees that all Lease Payments have been assigned by the Authority to the Trustee in trust, under the Assignment Agreement, for the benefit of the Owners of the Bonds, and the City hereby assents to such assignment. The Authority hereby directs the City, and the City hereby agrees to pay to the Trustee at its Office, all payments payable by the City under this Section and all amounts payable by the City under Article IX. SECTION 4.4. Source of Payments; Covenant to Budget and Appropriate. The Lease Payments are payable from any source of available funds of the City, subject to the provisions of Section 6.3. The City covenants to take all actions required to include the Lease Payments in each of its budgets during the Term of this Lease and to make the necessary appropriations for all Lease Payments and Additional Rental Payments. The foregoing covenant of the City contained constitutes a duty imposed by law and each and every public official of the City is required to take all actions required by law in the performance of the official duty of such officials to enable the City to carry out and perform the covenants and agreements in this Lease agreed to be carried out and performed by the City. Attachment 4 Page 269 of 858 -9- SECTION 4.5. Additional Rental Payments. In addition to the Lease Payments, the City shall pay when due the following amounts of Additional Rental Payments in consideration of the lease of the Leased Property by the City from the Authority hereunder: (a) All fees and expenses incurred by the Authority in connection with or by reason of its leasehold estate in the Leased Property, when due; (b) All reasonable compensation to the Trustee for all services rendered under the Indenture and for all reasonable expenses, charges, costs, liabilities, legal fees and other disbursements incurred in and about the performance of its powers and duties under the Indenture; (c) The reasonable fees and expenses of such accountants, consultants, attorneys and other experts as may be engaged by the Authority or the Trustee to prepare audits, financial statements, reports, opinions or provide such other services required under this Lease or the Indenture; (d) Amounts coming due and payable as Excess Investment Earnings in accordance with Section 7.6(e); and (e) The reasonable out-of-pocket expenses of the Authority in connection with the execution and delivery of this Lease or the Indenture, or in connection with the issuance of the Bonds, including but not limited to any and all expenses incurred in connection with the authorization, sale and delivery of the Bonds, or incurred by the Authority in connection with any litigation which may at any time be instituted involving this Lease, the Bonds, the Indenture or any of the other documents contemplated hereby or thereby, or otherwise incurred in connection with the administration of this Lease. SECTION 4.6. Quiet Enjoyment. Throughout the Term of this Lease, the Authority shall provide the City with quiet use and enjoyment of the Leased Property and the City will peaceably and quietly have and hold and enjoy the Leased Property, without suit, trouble or hindrance from the Authority, except as expressly set forth in this Lease. The Authority will, at the request of the City and at the City’s cost, join in any legal action in which the City asserts its right to such possession and enjoyment to the extent the Authority may lawfully do so. Notwithstanding the foregoing, the Authority has the right to inspect the Leased Property as provided in Section 7.2. SECTION 4.7. Title. Upon the termination of this Lease (other than under Section 8.2(b) hereof), all right, title and interest of the Authority in and to the Leased Property transfers to and vests in the City. The Authority shall take any and all steps and execute and record any and all documents reasonably required by the City to consummate any such transfer of title. Attachment 4 Page 270 of 858 -10- ARTICLE V MAINTENANCE; TAXES; INSURANCE; AND OTHER MATTERS SECTION 5.1. Maintenance, Utilities, Taxes and Assessments. Throughout the Term of this Lease, as part of the consideration for the rental of the Leased Property, all improvement, repair and maintenance of the Leased Property are the responsibility of the City, and the City will pay for or otherwise arrange for the payment of all utility services supplied to the Leased Property, which may include, without limitation, janitor service, security, power, gas, telephone, light, heating, water and all other utility services, and will pay for or otherwise arrange for the payment of the cost of the repair and replacement of the Leased Property resulting from ordinary wear and tear or want of care on the part of the City or any assignee or sublessee thereof. In exchange for the Lease Payments herein provided, the Authority agrees to provide only the Leased Property. The City 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 City under the terms of this Lease. The City shall also pay or cause to be paid all taxes and assessments of any type or nature, if any, charged to the Authority or the City affecting the Leased 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 City shall pay only such installments as are required to be paid during the Term of this Lease as and when the same become due. The City may, at its 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 Authority notifies the City that, in its reasonable opinion, by nonpayment of any such items the interest of the Authority in the Leased Property will be materially endangered or the Leased Property or any part thereof will be subject to loss or forfeiture, in which event the City shall promptly pay such taxes, assessments or charges or provide the Authority with full security against any loss which may result from nonpayment, in form satisfactory to the Authority and the Trustee. SECTION 5.2. Modification of Leased Property. The City has the right, at its own expense, to make additions, modifications and improvements to the Leased Property or any portion thereof. All additions, modifications and improvements to the Leased Property will thereafter comprise part of the Leased Property and become subject to the provisions of this Lease. Such additions, modifications and improvements may not in any way damage the Leased Property, or cause the Leased Property to be used for purposes other than those authorized under the provisions of state and federal law; and the Leased 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. The City will not permit any mechanic’s or other lien to be established or remain against the Leased Property for labor or materials furnished in connection with any remodeling, additions, modifications, improvements, repairs, renewals or replacements made by the City under this Section; except that if any such lien is established and the City first notifies or causes to be notified the Authority of the City’s Attachment 4 Page 271 of 858 -11- intention to do so, the City may in good faith contest any lien filed or established against the Leased Property, and in such event may permit the items so contested to remain undischarged and unsatisfied during the period of such contest and any appeal therefrom and shall provide the Authority with full security against any loss or forfeiture which might arise from the nonpayment of any such item, in form satisfactory to the Authority. The Authority will cooperate fully in any such contest, upon the request and at the expense of the City. SECTION 5.3. Liability Insurance. The City shall maintain or cause to be maintained throughout the Term of this Lease, a standard commercial general liability insurance policy or policies in protection of the Authority, the City, and their respective members, officers, agents, employees and assigns. 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 Leased Property. Such policy or policies shall provide coverage in such liability limits and be subject to such deductibles as the City deems adequate and prudent. Such insurance may be maintained as part of or in conjunction with any other insurance coverage carried by the City, and may be maintained in whole or in part in the form of self-insurance by the City, subject to the provisions of Section 5.4, or in the form of the participation by the City in a joint powers agency or other program providing pooled insurance. The proceeds of such liability insurance must be applied toward extinguishment or satisfaction of the liability with respect to which paid. SECTION 5.4. Property Insurance. The City shall procure and maintain, or cause to be procured and maintained, throughout the Term of this Lease, insurance against loss or damage to all improvements situated on the Leased Property. To the extent the Leased Property does not include streets, such insurance shall be in an amount at least equal to the lesser of (a) 100% of the replacement value of the insured buildings, or (b) 100% of the aggregate principal amount of the Outstanding Bonds. Such insurance must, as nearly as practicable, cover loss or damage by explosion, windstorm, riot, aircraft, vehicle damage, smoke and such other hazards as are normally covered by such insurance, and must include earthquake insurance if available at reasonable cost from reputable insurers in the judgment of the City. Such insurance may be subject to such deductibles as the City deems adequate and prudent. Such insurance may be maintained as part of or in conjunction with any other insurance coverage carried by the City, and may be maintained in whole or in part in the form of the participation by the City in a joint powers agency or other program providing pooled insurance; provided that such insurance may not be maintained by the City in the form of self-insurance. The Net Proceeds of such insurance must be applied as provided in Section 6.1. SECTION 5.5. Insurance Net Proceeds; Form of Policies. Each policy of insurance maintained under Section 5.4 must name the Trustee as loss payee so as to provide that all proceeds thereunder are payable to the Trustee. The City shall pay or cause to be paid when due the premiums for all insurance policies required by this Lease. All such policies shall provide that the Trustee is given 30 days’ notice of each expiration, any intended cancellation thereof or reduction of the coverage provided thereby. The Trustee has no responsibility for the sufficiency, adequacy or amount of any insurance or self-insurance herein required and is fully protected in accepting payment on account of such insurance or any adjustment, compromise or settlement of any loss. Attachment 4 Page 272 of 858 -12- SECTION 5.6. Installation of City’s Personal Property. The City 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 Leased Property. All such items shall remain the sole property of the City, in which neither the Authority nor the Trustee has any interest, and may be modified or removed by the City at any time, provided that the City must repair all damage to the Leased Property resulting from the installation, modification or removal of any such items. Nothing in this Lease prevents the City 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, so long as no such lien or security interest attaches to any part of the Leased Property. SECTION 5.7. Advances. If the City fails to perform any of its obligations under this Article V, the Authority may (but is not required to) take such action as it deems necessary to cure such failure, including the advancement of money, and the City shall repay all such advances as Additional Rental Payments hereunder, with interest at the rate set forth in Section 4.3(c). ARTICLE VI DAMAGE, DESTRUCTION AND EMINENT DOMAIN; USE OF NET PROCEEDS SECTION 6.1. Application of Net Proceeds. The Trustee, as assignee of the Authority under the Assignment Agreement, has the right to receive all Net Proceeds. As provided in the Indenture, the Trustee will deposit all Net Proceeds in the Insurance and Condemnation Fund to be applied as set forth in Section 5.07 of the Indenture. SECTION 6.2. Termination or Abatement Due to Eminent Domain. (a) If the Leased Property is taken permanently under the power of eminent domain or sold to a government threatening to exercise the power of eminent domain, the Term of this Lease thereupon ceases as of the day possession is taken. (b) If less than all of the Leased Property is taken permanently and the remainder is useable for the City’s purposes, or if the Leased Property is taken temporarily, under the power of eminent domain, then: (i) this Lease continues in full force and effect with respect thereto and does not terminate by virtue of such taking, and the parties waive the benefit of any law to the contrary, and (ii) the Lease Payments are subject to abatement in an amount determined by the City such that the resulting Lease Payments represent fair consideration for the use and occupancy of the remaining usable portions of the Leased Property. Notwithstanding the foregoing, there shall be no abatement of the Lease Payments under this Section 6.2 in the event and to the extent that amounts in the Attachment 4 Page 273 of 858 -13- Insurance and Condemnation Fund, the Bond Fund or the Reserve Fund are available to pay Lease Payments which would otherwise be abated, it being hereby declared that such proceeds and amounts constitute special funds for the payment of the Lease Payments. SECTION 6.3. Abatement Due to Damage or Destruction. The Lease Payments are subject to abatement during any period in which by reason of damage or destruction (other than by eminent domain which is hereinbefore provided for) there is substantial interference with the use and occupancy by the City of the Leased Property or any portion thereof. The Lease Payments are subject to abatement in an amount determined by the City, such that the resulting Lease Payments represent fair consideration for the use and occupancy of the remaining usable portions of the Leased Property not damaged or destroyed. Such abatement will continue for the period commencing with such damage or destruction and ending with the substantial completion of the work of repair or reconstruction. In the event of any such damage or destruction, this Lease continues in full force and effect and the City waives any right to terminate this Lease by virtue of any such damage and destruction. Notwithstanding the foregoing, there shall be no abatement of the Lease Payments under this Section 6.3 in the event and to the extent that amounts in the Insurance and Condemnation Fund, the Bond Fund or the Reserve Fund are available to pay Lease Payments which would otherwise be abated, it being hereby declared that such proceeds and amounts constitute special funds for the payment of the Lease Payments. The abatement of Lease Payments hereunder in accordance with the terms hereof shall not constitute an Event of Default (as defined in Section 8.1) hereunder. ARTICLE VII OTHER COVENANTS OF THE CITY SECTION 7.1. Disclaimer of Warranties. THE AUTHORITY 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 CITY OF THE LEASED PROPERTY OR ANY PORTION THEREOF, OR ANY OTHER REPRESENTATION OR WARRANTY WITH RESPECT TO THE LEASED PROPERTY OR ANY PORTION THEREOF. THE CITY ACKNOWLEDGES THAT THE AUTHORITY IS NOT A MANUFACTURER OF ANY PORTION OF THE LEASED PROPERTY OR A DEALER THEREIN, THAT THE CITY LEASES THE LEASED PROPERTY AS-IS, IT BEING AGREED THAT ALL OF THE AFOREMENTIONED RISKS ARE TO BE BORNE BY THE CITY. The Authority has no liability for incidental, indirect, special or consequential damages, in connection with or arising out of this Lease for the existence, furnishing, functioning or use of the Leased Property by the City. SECTION 7.2. Access to the Leased Property. The City agrees that the Authority and any Authorized Representative of the Authority, and the Authority’s successors or Attachment 4 Page 274 of 858 -14- assigns, have the right at all reasonable times to enter upon and to examine and inspect the Leased Property or any part thereof. The City further agrees that the Authority, any Board Representative and the Authority’s successors or assigns may have such rights of access to the Leased Property or any component thereof as reasonably necessary to cause the proper maintenance of the Leased Property if the City fails to perform its obligations hereunder; provided, however, that neither the Authority nor any of its assigns has any obligation to cause such proper maintenance. SECTION 7.3. Release and Indemnification Covenants. The City agrees to indemnify the Authority, the Trustee and their respective officers, agents, successors and assigns, against all claims, losses and damages, including legal fees and expenses, arising out of any of the following: (a) the use, maintenance, condition or management of, or from any work or thing done on the Leased Property by the City, (b) any breach or default on the part of the City in the performance of any of its obligations under this Lease, (c) any negligence or willful misconduct of the City or of any of its agents, contractors, servants, employees or licensees with respect to the Leased Property, (d) any intentional misconduct or negligence of any sublessee of the City with respect to the Leased Property, (e) the acquisition, construction, improvement and equipping of the Leased Property, or the authorization of payment of the costs thereof, or (f) the acceptance and performance of the duties of the Trustee under the Indenture and under this Lease. The rights of the Authority and the Trustee and the obligations of the City under this Section 7.3 shall survive the termination of this Lease or the resignation or removal of the Trustee. No indemnification is made under this Section or elsewhere in this Lease for willful misconduct or negligence under this Lease by the Authority, the Trustee or their respective officers, agents, employees, successors or assigns. SECTION 7.4. Assignment and Subleasing by the City. This Lease may not be assigned by the City, other than to an entity which succeeds to the interests of the City as a municipal corporation. The City may sublease the Leased Property, or any portion thereof, subject to all of the following conditions: (a) This Lease and the obligation of the City to make Lease Payments hereunder must remain obligations of the City. (b) The City must, within 30 days after the delivery thereof, furnish or cause to be furnished to the Authority and the Trustee a true and complete copy of such sublease. Attachment 4 Page 275 of 858 -15- (c) No such sublease by the City may cause the Leased Property to be used for a purpose which is not authorized under the provisions of the laws of the State of California. (d) The City must furnish to the Authority and the Trustee a written opinion of Bond Counsel stating that such sublease does not cause the interest components of the Lease Payments to become included in gross income for purposes of federal income taxation or to become subject to personal income taxation by the State of California. SECTION 7.5. Amendment Hereof. The Authority and the City may at any time amend or modify any of the provisions of this Lease, but only: (a) with the prior written consents of the Owners of a majority in aggregate principal amount of the Outstanding Bonds; or (b) without the consent of the Trustee or any of the Bond Owners, but only if such amendment or modification is for any one or more of the following purposes: (i) to add to the covenants and agreements of the City contained in this Lease, other covenants and agreements thereafter to be observed, or to limit or surrender any rights or power herein reserved to or conferred upon the City; (ii) to make such provisions for the purpose of curing any ambiguity, or of curing, correcting or supplementing any defective provision contained herein, to conform to the original intention of the City and the Authority; (iii) to modify, amend or supplement this Lease in such manner as to assure that the interest on the Bonds remains excluded from gross income under the Tax Code; (iv) to amend the description of the Leased Property to reflect accurately the property originally intended to be included therein, or in connection with any substitution or release of property under Sections 3.3 or 3.4; (v) to obligate the City to pay additional amounts of rental for the use and occupancy of the Leased Property, but only if (A) such additional rent payments are pledged or assigned for the payment of any bonds, notes or other obligations the proceeds of which are applied to finance or refinance the acquisition or construction of any real or personal property for which the City is authorized to expend funds subject to its control, (B) the City has obtained an appraisal or other evidence that the value of the Leased Property is at least equal to the aggregate principal amount of the Outstanding Bonds and all such other bonds, notes, leases or other obligations, and (C) the City has filed with the Trustee written evidence that the amendments made under this clause (v) will not of themselves cause a reduction or withdrawal of any rating then assigned to the Bonds; (vi) in any other respect whatsoever as the Authority and the City deem necessary or desirable, if in the opinion of Bond Counsel such Attachment 4 Page 276 of 858 -16- modifications or amendments do not materially adversely affect the interests of the Owners of the Bonds. No such modification or amendment may (a) extend or have the effect of extending any Lease Payment Date or reducing any Lease Payment or any premium payable upon the prepayment thereof, without the express consent of the Owners of the affected Bonds, or (b) modify any of the rights or obligations of the Trustee without its written assent thereto. SECTION 7.6. Tax Covenants. (a) Private Business Use Limitation. The City shall assure that the proceeds of the Bonds are not used in a manner which would cause the Bonds to satisfy the private business tests of Section 141(b) of the Tax Code or the private loan financing test of Section 141(c) of the Tax Code. (b) Federal Guarantee Prohibition. The City may not take any action or permit or suffer any action to be taken if the result of the same would be to cause the Bonds to be “federally guaranteed” within the meaning of Section 149(b) of the Tax Code. (c) No Arbitrage. The City may not take, or permit or suffer to be taken by the Trustee or otherwise, any action with respect to the proceeds of the Bonds or of any other obligations which, if such action had been reasonably expected to have been taken, or had been deliberately and intentionally taken, on the Closing Date, would have caused the Bonds to be “arbitrage bonds” within the meaning of Section 148(a) of the Tax Code. (d) Maintenance of Tax Exemption. The City shall take all actions necessary to assure the exclusion of interest on the Bonds from the gross income of the Owners of the Bonds to the same extent as such interest is permitted to be excluded from gross income under the Tax Code as in effect on the Closing Date. (e) Rebate of Excess Investment Earnings to United States. The City shall calculate or cause to be calculated the Excess Investment Earnings in all respects at the times and in the manner required under the Tax Code. The City shall pay the full amount of Excess Investment Earnings to the United States of America in such amounts, at such times and in such manner as may be required under the Tax Code. Such payments shall be made by the City from any source of legally available funds of the City, and shall constitute Additional Rental Payments hereunder. The City shall keep or cause to be kept, and retain or cause to be retained for a period of six years following the retirement of the Bonds, records of the determinations made under this subsection (e). In order to provide for the administration of this subsection (e), the City may provide for the employment of independent attorneys, accountants and consultants compensated on such reasonable basis as the City may deem appropriate. The Trustee has no duty or obligation to monitor or enforce compliance by the City of any of the requirements under this subsection (e). SECTION 7.7. Continuing Disclosure. The City shall comply with and carry out all of the provisions of the Continuing Disclosure Certificate executed by the City as of the Closing Date, as originally executed and as it may be amended from time to time in Attachment 4 Page 277 of 858 -17- accordance with its terms. Notwithstanding any other provision of this Lease, failure of the City to comply with such Continuing Disclosure Certificate will not constitute an Event of Default, although any Participating Underwriter (as that term is defined in such Continuing Disclosure Certificate) or any Owner or beneficial owner of the Bonds may take such actions as may be necessary and appropriate to compel performance by the City of its obligations under this Section, including seeking mandate or specific performance by court order. ARTICLE VIII EVENTS OF DEFAULT AND REMEDIES SECTION 8.1. Events of Default Defined. Any one or more of the following events constitute an Event of Default hereunder: (a) Failure by the City to pay any Lease Payment or other payment required to be paid hereunder at the time specified herein. (b) Failure by the City to observe and perform any covenant, condition or agreement on its part to be observed or performed, other than as referred to in the preceding subsection (a), for a period of 30 days after written notice specifying such failure and requesting that it be remedied has been given to the City by the Authority or the Trustee. If in the reasonable opinion of the City the failure stated in the notice can be corrected, but not within such 30 day period, the failure will not constitute an Event of Default if the City commences to cure the failure within such 30 day period and thereafter diligently and in good faith cures the failure in a reasonable period of time. (c) The filing by the City of a voluntary petition in bankruptcy, or failure by the City promptly to lift any execution, garnishment or attachment, or adjudication of the City as a bankrupt, or assignment by the City for the benefit of creditors, or the entry by the City into an agreement of composition with creditors, or the approval by a court of competent jurisdiction of a petition applicable to the City in any proceedings instituted under the provisions of the Federal Bankruptcy Code, as amended, or under any similar acts which may hereafter be enacted. SECTION 8.2. Remedies on Default. Whenever any Event of Default has happened and is continuing, the Authority may exercise any and all remedies available under law or granted under this Lease to collect the amounts then due and thereafter to become due hereunder or to enforce any other of its rights hereunder, except as provided herein. Notwithstanding anything herein or in the Indenture to the contrary, (a) neither the Authority nor the Trustee may accelerate the Lease Payments or otherwise declare any Lease Payments not then in default to be immediately due and payable (the Authority hereby expressly waives the right to receive any amount from the City pursuant to Section 1951.2 of the California Civil Code to accelerate payment of the Lease Payments) and (b) the Authority shall have no right to re-lease any portion of the Leased Property that constitutes the roadway portion of a City street. Each covenant hereof to Attachment 4 Page 278 of 858 -18- be kept and performed by the City is expressly made a condition and upon the breach thereof the Authority may exercise any and all rights granted hereunder; except that no termination of this Lease may be effected either by operation of law or acts of the parties hereto, except only in the manner herein expressly provided. SECTION 8.3. No Remedy Exclusive. No remedy herein conferred upon or reserved to the Authority is intended to be exclusive and every such remedy is cumulative and in addition to every other remedy given under this Lease 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 impairs any such right or power or operates as 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 Authority to exercise any remedy reserved to it in this Article VIII it is not necessary to give any notice, other than as expressly required in this Article VIII or by law. SECTION 8.4. Agreement to Pay Attorneys’ Fees and Expenses. If the Authority or the City defaults under any of the provisions of this Lease and the nondefaulting party employs attorneys or incurs 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 will on demand therefor pay to the nondefaulting party the reasonable fees of such attorneys and such other expenses so incurred by the nondefaulting party. SECTION 8.5. No Additional Waiver Implied by One Waiver. If the Authority or the City breaches any agreement in this Lease and thereafter the other party waives the breach, such waiver is limited to the particular Breach so waived and does not operate to waive any other breach hereunder. SECTION 8.6. Application of Proceeds. All net proceeds received from a re-lease of the Leased Property under this Article VIII, and all other amounts derived by the Authority or the Trustee as a result of the occurrence of an Event of Default, must be paid to and applied by the Trustee in accordance with Section 7.03 of the Indenture. SECTION 8.7. Trustee and Bond Owners to Exercise Rights. Such rights and remedies as are given to the Authority under this Article VIII have been assigned by the Authority to the Trustee under the Assignment Agreement for the benefit of the Bond Owners, to which assignment the City hereby consents. The Trustee and the Bond Owners shall exercise such rights and remedies in accordance with the Indenture. Attachment 4 Page 279 of 858 -19- ARTICLE IX PREPAYMENT OF LEASE PAYMENTS SECTION 9.1. Security Deposit. Notwithstanding any other provision of this Lease, the City may on any date secure the payment of the Lease Payments allocable to the Leased Property in whole or in part by depositing with the Trustee an amount of cash which, together with other available amounts on deposit in the funds and accounts established under the Indenture, 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 Appendix B, or (b) invested in whole or in part in non-callable Federal Securities in such amount as will, in the opinion of an independent certified public accountant, together with interest to accrue thereon and together with any cash which is so deposited, be fully sufficient to pay such Lease Payments when due under Section 4.3(a), as the City instructs at the time of said deposit. If the City makes a security deposit under this Section with respect to all unpaid Lease Payments, and notwithstanding the provisions of Section 4.2, (a) the Term of this Lease will continue, (b) all obligations of the City under this Lease, and all security provided by this Lease for said Lease Payments, will thereupon cease and terminate, excepting only the obligation of the City to make, or cause to be made all of said Lease Payments from such security deposit, and (c) under Section 4.7, title to the Leased Property will vest in the City on the date of said deposit automatically and without further action by the City or the Authority. Said security deposit constitutes a special fund for the payment of Lease Payments in accordance with the provisions of this Lease. SECTION 9.2. Prepayment. The City has the option to prepay the principal components of the Lease Payments in as described under Section 4.01(a) of the Indenture. Such prepayment price shall be deposited by the Trustee in the Redemption Fund to be applied to the redemption of Bonds under Section 4.01(a) of the Indenture. The City shall give written notice to the Authority and the Trustee of its intention to prepay the Lease Payments under this Section at least 45 days prior to the prepayment date, or such shorter period of time as may be acceptable to the Trustee in its sole discretion, such notice being solely for the convenience of the Trustee. Additionally, this Lease is subject to extraordinary mandatory prepayment as described under Section 4.01(c) of the Indenture. SECTION 9.3. Mandatory Prepayment From Net Proceeds of Insurance or Eminent Domain. The City shall prepay the principal components of the Lease Payments allocable to the Leased Property in whole or in part on any date, from and to the extent of any Net Proceeds of insurance award or eminent domain award with respect to the Leased Property theretofore deposited in the Redemption Fund for that purpose under Article VI hereof and Section 5.07 of the Indenture. Such Net Proceeds, to the extent remaining after payment of any delinquent Lease Payments, will be credited towards the City’s obligations under this Section and applied to the corresponding redemption of Bonds under Section 4.01 of the Indenture on the next available redemption date. Attachment 4 Page 280 of 858 -20- SECTION 9.4. Credit for Amounts on Deposit. If the principal components of the Lease Payments are prepaid in full under this Article IX, such that the Indenture is discharged by its terms as a result of such prepayment, at the written election of the City filed with the Trustee any or all amounts then on deposit in the Bond Fund (and the accounts therein) or the Reserve Fund will be credited towards the amounts then required to be so prepaid. ARTICLE X MISCELLANEOUS SECTION 10.1. Notices. Any notice, request, complaint, demand or other communication under this Lease 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 Authority, the City or the Trustee 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 City City of Ukiah or the Authority: Attention: Finance Director 300 Seminary Avenue Ukiah, CA 95482 If to the Trustee: The Bank of New York Mellon Trust Company, N.A. Attention: Corporate Trust Administration 333 S. Hope Street, Suite #2525 Los Angeles, California 90071 100 Pine Street, Suite 3200 San Francisco, California 94111 SECTION 10.2. Binding Effect. This Lease inures to the benefit of and binds the Authority, the City and their respective successors and assigns. SECTION 10.3. Severability. If any provision of this Lease 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 is deemed and construed to be a “net-net-net lease” and the City hereby agrees that the Lease Payments are an absolute net return to the Authority, free and clear of any expenses, charges or set-offs whatsoever. SECTION 10.5. Third Party Beneficiary. The Trustee is hereby made a third party beneficiary hereunder with all rights of a third party beneficiary. Attachment 4 Page 281 of 858 -21- SECTION 10.6. Further Assurances and Corrective Instruments. The Authority and the City shall, 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 Leased Property hereby leased or intended so to be or for carrying out the expressed intention of this Lease. SECTION 10.7. Execution in Counterparts. This Lease may be executed in several counterparts, each of which is an original and all of which constitute but one and the same instrument. SECTION 10.8. Applicable Law. This Lease is governed by and construed in accordance with the laws of the State of California. SECTION 10.9. Board and City Representatives. Whenever under the provisions of this Lease the approval of the Authority or the City is required, or the Authority or the City is required to take some action at the request of the other, such approval or such request shall be given for the Authority and for the City by an Authorized Representative thereof, and any party hereto may conclusively rely upon any such approval or request. SECTION 10.10. Captions. The captions or headings in this Lease are for convenience only and in no way define, limit or describe the scope or intent of any provisions or Section of this Lease. Remainder of page intentionally left blank. Signatures on next page. Attachment 4 Page 282 of 858 [Signature Page to Lease Agreement dated as of February 1, 2022] IN WITNESS WHEREOF, the Authority and the City have caused this Lease to be executed in their respective names by their duly authorized officers, all as of the date first above written. UKIAH PUBLIC FINANCING AUTHORITY as Lessor By: Daniel Buffalo Treasurer CITY OF UKIAH as Lessee By: Daniel Buffalo Finance Director Attachment 4 Page 283 of 858 A-1 APPENDIX A DESCRIPTION OF THE LEASED PROPERTY The Leased Property consists of that certain real property, together with all fixtures, equipment or other improvements located upon the real property, except as to the library as excluded below, situated in the City of Ukiah, County of Mendocino, State of California, described as follows: [[All City Streets]] Attachment 4 Page 284 of 858 B-1 APPENDIX B SCHEDULE OF LEASE PAYMENTS Lease Payment Date * Principal Component Interest Component Aggregate Lease Payment Annual Aggregate Lease Payment 4/1/22 6/30/22 10/1/22 4/1/23 6/30/23 10/1/23 4/1/24 6/30/24 10/1/24 4/1/25 6/30/25 10/1/25 4/1/26 6/30/26 10/1/26 4/1/27 6/30/27 10/1/27 4/1/28 6/30/28 10/1/28 4/1/29 6/30/29 10/1/29 4/1/30 6/30/30 10/1/30 4/1/31 6/30/31 10/1/31 4/1/32 6/30/32 10/1/32 4/1/33 6/30/33 10/1/33 4/1/34 6/30/34 10/1/34 4/1/35 6/30/35 10/1/35 4/1/36 6/30/36 10/1/36 4/1/37 6/30/37 10/1/37 4/1/38 6/30/38 Attachment 4 Page 285 of 858 B-2 10/1/38 4/1/39 6/30/39 10/1/39 4/1/40 6/30/40 10/1/40 4/1/41 6/30/41 10/1/41 4/1/42 6/30/42 10/1/42 4/1/43 6/30/43 10/1/43 4/1/44 6/30/44 10/1/44 4/1/45 6/30/45 10/1/45 4/1/46 6/30/46 10/1/46 4/1/47 6/30/47 10/1/47 4/1/48 6/30/48 10/1/48 4/1/49 6/30/49 10/1/49 4/1/50 6/30/50 10/1/50 4/1/51 6/30/51 TOTAL * Lease Payment Dates are the 5th Business Day immediately preceding each date listed in the schedule. Attachment 4 Page 286 of 858 Jones Hall Draft 1.11.22 INDENTURE OF TRUST Dated as of February 1, 2022 between UKIAH PUBLIC FINANCING AUTHORITY and THE BANK OF NEW YORK MELLON TRUST COMPANY, as Trustee Authorizing the Issuance of $_______________ Ukiah Public Financing Authority Lease Revenue Bonds, Series 2022 (Capital Projects) Attachment 5 Page 287 of 858 -i- TABLE OF CONTENTS ARTICLE I: DEFINITIONS; RULES OF CONSTRUCTION: Section 1.01. Definitions ........................................................................................................... 3 Section 1.02. Authorization ....................................................................................................... 3 Section 1.03. Interpretation ....................................................................................................... 3 ARTICLE II: THE BONDS: Section 2.01. Authorization of Bonds ........................................................................................ 4 Section 2.02. Terms of the Bonds ............................................................................................. 4 Section 2.03. Transfer and Exchange of Bonds ....................................................................... 5 Section 2.04. Book-Entry System ............................................................................................. 6 Section 2.05. Registration Books .............................................................................................. 8 Section 2.06. Form and Execution of Bonds ............................................................................. 8 Section 2.07. Bonds Mutilated, Lost, Destroyed or Stolen ........................................................ 8 ARTICLE III: ISSUANCE OF BONDS; APPLICATION OF PROCEEDS: Section 3.01. Issuance of the Bonds ........................................................................................ 9 Section 3.02. Application of Proceeds of Sale of Bonds ........................................................... 9 Section 3.03. Establishment and Application of Costs of Issuance Fund ................................. 9 Section 3.04. Establishment and Application of Project Fund. ............................................... 10 Section 3.05. Validity of Bonds ............................................................................................... 10 ARTICLE IV: REDEMPTION OF BONDS: Section 4.01. Terms of Redemption ....................................................................................... 11 Section 4.02. Selection of Bonds for Redemption .................................................................. 12 Section 4.03. Notice of Redemption; Rescission .................................................................... 12 Section 4.04. Partial Redemption of Bonds ............................................................................ 12 Section 4.05. Effect of Redemption ........................................................................................ 12 ARTICLE V: REVENUES; FUNDS AND ACCOUNTS; PAYMENT OF PRINCIPAL AND INTEREST: Section 5.01. Security for the Bonds; Bond Fund ................................................................... 13 Section 5.02. Allocation of Revenues ..................................................................................... 13 Section 5.03. Application of Interest Account ......................................................................... 14 Section 5.04. Application of Principal Account ........................................................................ 14 Section 5.05. Reserve Fund ................................................................................................... 14 Section 5.06. Application of Redemption Fund ....................................................................... 15 Section 5.07. Insurance and Condemnation Fund .................................................................. 15 Section 5.08. Investments ....................................................................................................... 16 Section 5.09. Valuation and Disposition of Investments ......................................................... 17 ARTICLE VI: COVENANTS OF THE AUTHORITY Section 6.01. Punctual Payment ............................................................................................. 19 Section 6.02. Extension of Payment of Bonds ........................................................................ 19 Attachment 5 Page 288 of 858 -ii- Section 6.03. Against Encumbrances ..................................................................................... 19 Section 6.04. Power to Issue Bonds and Make Pledge and Assignment ............................... 19 Section 6.05. Accounting Records .......................................................................................... 19 Section 6.06. Limitation on Additional Obligations .................................................................. 20 Section 6.07. Tax Covenants .................................................................................................. 20 Section 6.08. Enforcement of Lease ....................................................................................... 20 Section 6.09. Waiver of Laws ................................................................................................. 21 Section 6.10. Further Assurances ........................................................................................... 21 Section 6.11. Maintenance of Existence ................................................................................. 21 ARTICLE VII: EVENTS OF DEFAULT AND REMEDIES: Section 7.01. Events of Default ............................................................................................... 22 Section 7.02. Remedies Upon Event of Default ...................................................................... 22 Section 7.03. Application of Revenues and Other Funds After Default .................................. 23 Section 7.04. Trustee to Represent Bond Owners ................................................................. 23 Section 7.05. Limitation on Bond Owners' Right to Sue ......................................................... 24 Section 7.06. Absolute Obligation of Board ............................................................................ 24 Section 7.07. Termination of Proceedings .............................................................................. 24 Section 7.08. Remedies Not Exclusive ................................................................................... 25 Section 7.09. No Waiver of Default ......................................................................................... 25 Section 7.10. Notice to the Bond Owners of Default ............................................................... 25 ARTICLE VIII: THE TRUSTEE: Section 8.01. Duties, Immunities and Liabilities of Trustee .................................................... 26 Section 8.02. Merger or Consolidation .................................................................................... 27 Section 8.03. Liability of Trustee ............................................................................................. 27 Section 8.04. Right to Rely on Documents ............................................................................. 30 Section 8.05. Preservation and Inspection of Documents ...................................................... 30 Section 8.06. Compensation and Indemnification ................................................................... 30 Section 8.07. Accounting Records and Financial Statements ................................................ 31 ARTICLE IX: MODIFICATION OR AMENDMENT HEREOF: Section 9.01. Amendments Permitted .................................................................................... 32 Section 9.02. Effect of Supplemental Indenture ...................................................................... 33 Section 9.03. Endorsement of Bonds; Preparation of New Bonds ......................................... 33 Section 9.04. Amendment of Particular Bonds ....................................................................... 34 ARTICLE X: DEFEASANCE: Section 10.01. Discharge of Indenture ...................................................................................... 35 Section 10.02. Discharge of Liability on Bonds ......................................................................... 35 Section 10.03. Deposit of Money or Securities with Trustee .................................................... 36 Section 10.04. Unclaimed Funds .............................................................................................. 36 ARTICLE XI: MISCELLANEOUS: Section 11.01. Liability of Authority Limited to Revenues ......................................................... 37 Section 11.02. Limitation of Rights to Parties and Bond Owners ............................................. 37 Attachment 5 Page 289 of 858 -iii- Section 11.03. Funds and Accounts ......................................................................................... 37 Section 11.04. Waiver of Notice; Requirement of Mailed Notice .............................................. 37 Section 11.05. Destruction of Bonds ......................................................................................... 37 Section 11.06. Severability of Invalid Provisions ...................................................................... 37 Section 11.07. Notices .............................................................................................................. 38 Section 11.08. Evidence of Rights of Bond Owners ................................................................. 38 Section 11.09. Disqualified Bonds ............................................................................................ 39 Section 11.10. Money Held for Particular Bonds ...................................................................... 39 Section 11.11. Waiver of Personal Liability ............................................................................... 39 Section 11.12. Successor Is Deemed Included in All References to Predecessor ................... 39 Section 11.13. Execution in Several Counterparts ................................................................... 39 Section 11.14. Payment on Non-Business Day ........................................................................ 40 Section 11.15. Governing Law .................................................................................................. 40 APPENDIX A DEFINITIONS APPENDIX B FORM OF BOND Attachment 5 Page 290 of 858 INDENTURE OF TRUST This INDENTURE OF TRUST (this “Indenture”), dated for convenience as of February 1, 2022, is between the UKIAH PUBLIC FINANCING AUTHORITY, a joint exercise of powers authority organized and existing under the laws of the State of California (the “Authority”), and THE BANK OF NEW YORK MELLON TRUST COMPANY, a national banking association organized and existing under the laws of the United States of America, with a corporate trust office in San Francisco, California, being qualified to accept and administer the trusts hereby created (the “Trustee”). BACKGROUND: 1. The City is proceeding to reconstruct its corporation yard and construct improvements to various City streets (collectively, the “Project”). 2. In order to provide funds to finance a portion of the costs of the Project, the City has agreed to lease the real property more particularly described in Appendix A attached hereto and by this reference incorporated herein, consisting of streets in the City (the “Leased Property”) to the Authority under a Site Lease dated as of February 1, 2022 (the “Site Lease”), under which the Authority agrees to make an initial rental payment (the “Site Lease Payment”) which is sufficient to provide funds for such purposes. 3. The Authority has authorized the issuance of its Ukiah Public Financing Authority Lease Revenue Bonds, Series 2022 (Capital Projects) in the aggregate principal amount of $______________ (the “Bonds”) under this Indenture and under the provisions of Article 4 of Chapter 5, Division 7, Title 1 of the Government Code of the State of California, commencing with Section 6584 of said Code (the “Bond Law”), for the purpose of providing the funds to enable the Authority to pay the Site Lease Payment to the City in accordance with the Site Lease. 4. In order to provide revenues which are sufficient to enable the Authority to pay debt service on the Bonds, the Authority has agreed to lease the Leased Property back to the City under a Lease Agreement dated as of February 1, 2022 (the “Lease”), under which the City has agreed to pay semiannual Lease Payments as the rental for the Leased Property thereunder. 5. The lease payments made by the City under the Lease have been assigned by the Authority to the Trustee for the security of the Bonds under an Assignment Agreement dated as of February 1, 2022, between the Authority as assignor and the Trustee as assignee. 6. In order to provide for the authentication and delivery of the Bonds, to establish and declare the terms and conditions upon which the Bonds are to be issued and to secure the payment of the principal thereof, premium (if any) and interest thereon, the Authority has authorized the execution and delivery of this Indenture. 7. The Authority has found and determines, and hereby affirms, that all acts and proceedings required by law necessary to make the Bonds, when executed by the Attachment 5 Page 291 of 858 -2- Authority, authenticated and delivered by the Trustee and duly issued, the valid, binding and legal special obligations of the Authority, and to constitute this Indenture a valid and binding agreement for the uses and purposes herein set forth in accordance with its terms, have been done and taken, and the execution and delivery of this Indenture have been in all respects duly authorized. AGREEMENT: In order to secure the payment of the principal of and the interest and redemption premium (if any) on all the Outstanding Bonds under this Indenture according to their tenor, and to secure the performance and observance of all the covenants and conditions therein and herein set forth, and to declare the terms and conditions upon and subject to which the Bonds are to be issued and received, and in consideration of the premises and of the mutual covenants herein contained and of the purchase and acceptance of the Bonds by the Owners thereof, and for other valuable considerations, the receipt of which is hereby acknowledged, the Authority and the Trustee do hereby covenant and agree with one another, for the benefit of the respective Owners from time to time of the Bonds, as follows: Attachment 5 Page 292 of 858 -3- ARTICLE I DEFINITIONS; RULES OF CONSTRUCTION SECTION 1.01. Definitions. Unless the context clearly otherwise requires or unless otherwise defined herein, the capitalized terms defined in Appendix A attached to this Indenture have the respective meanings specified in that Appendix when used in this Indenture. SECTION 1.02. Authorization. Each of the parties hereby represents and warrants that it has full legal authority and is duly empowered to enter into this Indenture, and has taken all actions necessary to authorize the execution hereof by the officers and persons signing it. SECTION 1.03. Interpretation. (a) Unless the context otherwise indicates, words expressed in the singular shall include the plural and vice versa and the use of the neuter, masculine, or feminine gender is for convenience only and shall be deemed to 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 shall 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 Indenture; the words “herein,” “hereof,” “hereby,” “hereunder” and other words of similar import refer to this Indenture as a whole and not to any particular Article, Section or subdivision hereof. Attachment 5 Page 293 of 858 -4- ARTICLE II THE BONDS SECTION 2.01. Authorization of Bonds. The Authority has reviewed all proceedings heretofore taken and has found, as a result of such review, and hereby finds and determines that all things, conditions and acts required by law to exist, happen or be performed precedent to and in connection with the issuance of the Bonds do exist, have happened and have been performed in due time, form and manner as required by law, and the Authority is now duly empowered, under each and every requirement of law, to issue the Bonds in the manner and form provided in this Indenture. The Authority hereby authorizes the issuance of Bonds in the aggregate principal amount of $___________ under the Bond Law for the purposes of providing funds to pay the Site Lease Payment to the City and thereby provide funds to finance the Project. The Bonds are authorized and issued under, and are subject to the terms of, this Indenture and the Bond Law. The Bonds are designated as the “Ukiah Public Financing Authority Lease Revenue Bonds, Series 2022 (Capital Projects).” SECTION 2.02. Terms of the Bonds. (a) Payment Provisions. The Bonds shall be issued in fully registered form without coupons in denominations of $5,000 or any integral multiple thereof, so long as no Bond has more than one maturity date. The Bonds shall mature on April 1 in each of the years and in the amounts, and bear interest (calculated on the basis of a 360-day year of twelve 30-day months) at the rates, as follows: Maturity Date (April 1) Principal Amount Interest Rate Interest on the Bonds is payable from the Interest Payment Date next preceding the date of authentication thereof unless: Attachment 5 Page 294 of 858 -5- (a) a Bond is authenticated on or before an Interest Payment Date and after the close of business on the preceding Record Date, in which event it will bear interest from such Interest Payment Date, (b) a Bond is authenticated on or before the first Record Date, in which event interest thereon will be payable from the Closing Date, or (c) interest on any Bond is in default as of the date of authentication thereof, in which event interest thereon will be payable from the date to which interest has been paid in full, payable on each Interest Payment Date. Interest is payable on each Interest Payment Date to the persons in whose names the ownership of the Bonds is registered on the Registration Books at the close of business on the immediately preceding Record Date, except as provided below. Interest on any Bond which is not punctually paid or duly provided for on any Interest Payment Date is payable to the person in whose name the ownership of such Bond is registered on the Registration Books at the close of business on a special record date for the payment of such defaulted interest to be fixed by the Trustee, notice of which is given to such Owner by first-class mail not less than 10 days prior to such special record date. The Trustee will pay interest on the Bonds by check of the Trustee mailed by first class mail, postage prepaid, on each Interest Payment Date to the Owners of the Bonds at their respective addresses shown on the Registration Books as of the close of business on the preceding Record Date. At the written request of the Owner of Bonds in an aggregate principal amount of at least $1,000,000, which written request is on file with the Trustee as of any Record Date, the Trustee will pay interest on such Bonds on each succeeding Interest Payment Date by wire transfer in immediately available funds to such account of a financial institution within the United States of America as specified in such written request, which written request will remain in effect until rescinded in writing by the Owner. The Trustee will pay principal of the Bonds in lawful money of the United States of America by check of the Trustee upon presentation and surrender thereof at the Office of the Trustee. SECTION 2.03. Transfer and Exchange of Bonds. (a) Transfer. Any Bond may, in accordance with its terms, be transferred, upon the Registration Books, by the person in whose name it is registered, in person or by a duly authorized attorney of such person, upon surrender of such Bond to the Trustee at its Office for cancellation, accompanied by delivery of a written instrument of transfer in a form acceptable to the Trustee, duly executed. The Trustee shall collect from the transferee any tax or other governmental charge on the transfer of any Bonds under this Section 2.03. Whenever any Bond or Bonds shall be surrendered for transfer, the Authority shall execute and the Trustee shall authenticate and deliver to the transferee a new Bond or Bonds of like series, interest rate, maturity and aggregate principal amount in authorized denominations. The Authority shall pay the cost of printing Bonds and any services rendered or expenses incurred by the Trustee in connection with any transfer of Bonds. Prior to any transfer of a Bond outside the book-entry system (including, but not limited to, the initial transfer outside the book-entry system) the transferor shall provide or cause to be provided to the Trustee all information necessary to allow the Trustee to Attachment 5 Page 295 of 858 -6- comply with any applicable tax reporting obligations, including without limitation any cost basis reporting obligations under Internal Revenue Code Section 6045, as amended. The Trustee shall conclusively rely on the information provided to it and shall have no responsibility to verify or ensure the accuracy of such information. (b) Exchange. The Bonds may be exchanged at the Office of the Trustee for a like aggregate principal amount of Bonds of other authorized denominations and of the same series, interest rate and maturity. The Trustee shall collect from the transferee any tax or other governmental charge on the exchange of any Bonds under this subsection (b). The Authority shall pay the cost of printing Bonds and any services rendered or expenses incurred by the Trustee in connection with any exchange of Bonds. (c) Limitations. The Trustee may refuse to transfer or exchange, under the provisions of this Section 2.03, any Bonds selected by the Trustee for redemption under Article IV, or any Bonds during the period established by the Trustee for the selection of Bonds for redemption. SECTION 2.04. Book-Entry System. (a) Original Delivery. The Bonds will be initially delivered in the form of a separate single fully registered bond (which may be typewritten) for each maturity of the Bonds. Upon initial delivery, the Trustee shall register the ownership of each Bond on the Registration Books in the name of the Nominee. Except as provided in subsection (c), the ownership of all of the Outstanding Bonds shall be registered in the name of the Nominee on the Registration Books. With respect to Bonds the ownership of which shall be registered in the name of the Nominee, the Authority and the Trustee has no responsibility or obligation to any Depository System Participant or to any person on behalf of which the Nominee holds an interest in the Bonds. Without limiting the generality of the immediately preceding sentence, the Authority and the Trustee has no responsibility or obligation with respect to (i) the accuracy of the records of the Depository, the Nominee or any Depository System Participant with respect to any ownership interest in the Bonds, (ii) the delivery to any Depository System Participant or any other person, other than a Bond Owner as shown in the Registration Books, of any notice with respect to the Bonds, including any notice of redemption, (iii) the selection by the Depository of the beneficial interests in the Bonds to be redeemed if the Authority elects to redeem the Bonds in part, (iv) the payment to any Depository System Participant or any other person, other than a Bond Owner as shown in the Registration Books, of any amount with respect to principal, premium, if any, or interest on the Bonds or (v) any consent given or other action taken by the Depository as Owner of the Bonds. The Authority and the Trustee may treat and consider the person in whose name each Bond is registered as the absolute owner of such Bond for the purpose of payment of principal of and premium, if any, and interest on such Bond, for the purpose of giving notices of redemption and other matters with respect to such Bond, for the purpose of registering transfers of ownership of such Bond, and for all other purposes whatsoever. The Trustee shall pay the principal of and the interest and premium, if any, on the Bonds only to the respective Owners or their respective attorneys duly authorized in writing, and all such payments shall be valid and effective to fully satisfy and discharge all obligations with respect to payment of principal of and interest and premium, if any, on the Bonds to the extent of the sum or sums so paid. No person other than a Bond Owner shall receive a Bond evidencing the obligation of the Authority to make payments of Attachment 5 Page 296 of 858 -7- principal, interest and premium, if any, under this Indenture. Upon delivery by the Depository to the Authority of written notice to the effect that the Depository has determined to substitute a new Nominee in its place, and subject to the provisions herein with respect to Record Dates, such new nominee shall become the Nominee hereunder for all purposes; and upon receipt of such a notice the Authority shall promptly deliver a copy of the same to the Trustee. (b) Representation Letter. In order to qualify the Bonds for the Depository’s book-entry system, the Authority shall execute and deliver to such Depository a letter representing such matters as shall be necessary to so qualify the Bonds. The execution and delivery of such letter shall not in any way limit the provisions of subsection (a) above or in any other way impose upon the Authority or the Trustee any obligation whatsoever with respect to persons having interests in the Bonds other than the Bond Owners. Upon the written acceptance by the Trustee, the Trustee shall agree to take all action reasonably necessary for all representations of the Trustee in such letter with respect to the Trustee to at all times be complied with. In addition to the execution and delivery of such letter, the Authority may take any other actions, not inconsistent with this Indenture, to qualify the Bonds for the Depository’s book-entry program. (c) Transfers Outside Book-Entry System. If either (i) the Depository determines not to continue to act as Depository for the Bonds, or (ii) the Authority determines to terminate the Depository as such, then the Authority shall thereupon discontinue the book- entry system with such Depository. In such event, the Depository shall cooperate with the Authority and the Trustee in the issuance of replacement Bonds by providing the Trustee with a list showing the interests of the Depository System Participants in the Bonds, and by surrendering the Bonds, registered in the name of the Nominee, to the Trustee on or before the date such replacement Bonds are to be issued. The Depository, by accepting delivery of the Bonds, agrees to be bound by the provisions of this subsection (c). If, prior to the termination of the Depository acting as such, the Authority fails to identify another Securities Depository to replace the Depository, then the Bonds shall no longer be required to be registered in the Registration Books in the name of the Nominee, but shall be registered in whatever name or names the Owners transferring or exchanging Bonds shall designate, in accordance with the provisions hereof. If the Authority determines that it is in the best interests of the beneficial owners of the Bonds that they be able to obtain certificated Bonds, the Authority may notify the Depository System Participants of the availability of such certificated Bonds through the Depository. In such event, the Trustee will issue, transfer and exchange Bonds as required by the Depository and others in appropriate amounts; and whenever the Depository requests, the Trustee and the Authority shall cooperate with the Depository in taking appropriate action (y) to make available one or more separate certificates evidencing the Bonds to any Depository System Participant having Bonds credited to its account with the Depository, or (z) to arrange for another Securities Depository to maintain custody of a single certificate evidencing such Bonds, all at the Authority’s expense. (d) Payments to the Nominee. Notwithstanding any other provision of this Indenture to the contrary, so long as any Bond is registered in the name of the Nominee, all payments with respect to principal of and interest and premium, if any, on such Bond and all notices with respect to such Bond shall be made and given, respectively, as provided in the letter described in subsection (b) of this Section or as otherwise instructed by the Depository. Attachment 5 Page 297 of 858 -8- SECTION 2.05. Registration Books. The Trustee will keep or cause to be kept, at the Office of the Trustee, sufficient records for the registration and transfer of ownership of the Bonds, which shall upon reasonable notice as agreed to by the Trustee, be open to inspection during regular business hours by the Authority; and, upon presentation for such purpose, the Trustee shall, under such reasonable regulations as it may prescribe, register or transfer or cause to be registered or transferred, on such records, the ownership of the Bonds as hereinbefore provided. SECTION 2.06. Form and Execution of Bonds. The Bonds, the form of Trustee’s certificate of authentication, and the form of assignment to appear thereon, are set forth in Appendix B attached hereto and by this reference incorporated herein, with necessary or appropriate variations, omissions and insertions, as permitted or required by this Indenture. The Treasurer of the Authority or other Authorized Representative with authority to do so shall execute, and the Secretary of the Authority shall attest each Bond. Either or both of such signatures may be made manually or may be affixed by facsimile thereof. If any officer whose signature appears on any Bond ceases to be such officer before the Closing Date, such signature will nevertheless be as effective as if the officer had remained in office until the Closing Date. Any Bond may be signed and attested on behalf of the Authority by such persons as at the actual date of the execution of such Bond are the proper officers of the Authority, duly authorized to execute debt instruments on behalf of the Authority, although on the date of such Bond any such person was not an officer of the Authority. Only those Bonds bearing a certificate of authentication in the form set forth in Appendix B, manually executed and dated by the Trustee, are valid or obligatory for any purpose or entitled to the benefits of this Indenture, and such certificate of the Trustee is conclusive evidence that such Bonds have been duly authenticated and delivered hereunder and are entitled to the benefits of this Indenture. SECTION 2.07. Bonds Mutilated, Lost, Destroyed or Stolen. If any Bond is mutilated, the Authority, at the expense of the Owner of such Bond, shall execute, and the Trustee shall thereupon authenticate and deliver, a new Bond of like tenor in exchange and substitution for the Bond so mutilated, but only upon surrender to the Trustee of the Bond so mutilated. The Trustee shall cancel every mutilated Bond surrendered to it and deliver such mutilated Bond to, or upon the order of, the Authority. If any Bond is lost, destroyed or stolen, evidence of such loss, destruction or theft may be submitted to the Trustee and, if such evidence is satisfactory and if indemnity satisfactory to the Trustee is given, the Authority, at the expense of the Owner, shall execute, and the Trustee shall thereupon authenticate and deliver, a new Bond of like tenor in lieu of and in substitution for the Bond so lost, destroyed or stolen. The Trustee may require payment of a sum not exceeding the actual cost of preparing each new Bond issued under this Section and of the expenses which may be incurred by the Trustee in connection therewith. Any Bond issued under the provisions of this Section in lieu of any Bond alleged to be lost, destroyed or stolen will constitute an original additional contractual obligation on the part of the Authority whether or not the Bond so alleged to be lost, destroyed or stolen be at any time enforceable by anyone, and shall be equally and proportionately entitled to the benefits of this Indenture with all other Bonds issued under this Indenture. Attachment 5 Page 298 of 858 -9- Notwithstanding any other provision of this Section 2.07, in lieu of delivering a new Bond for which principal has become due for a Bond which has been mutilated, lost, destroyed or stolen, the Trustee may make payment of such Bond in accordance with its terms upon receipt of indemnity satisfactory to the Trustee. ARTICLE III ISSUANCE OF BONDS; APPLICATION OF PROCEEDS SECTION 3.01. Issuance of the Bonds. At any time after the execution of this Indenture, the Authority may execute and the Trustee shall authenticate and, upon the Written Request of the Authority, deliver the Bonds to the Original Purchaser upon receipt of payment of the purchase price for the Bonds. SECTION 3.02. Application of Proceeds of Sale of Bonds . Upon the receipt of payment for the Bonds on the Closing Date in the amount of $_____________ (representing the aggregate principal amount thereof ($_____________), plus original issuance premium of $_____________, less an Underwriter’s discount of $_____________), the Trustee shall deposit the proceeds thereof into a temporary account, which shall be disbursed in full on the Closing Date (whereupon said temporary account shall be closed) as follows: (a) The Trustee shall wire transfer to the City the amount of $_____________, constituting the remainder of such proceeds, to be held by the City in the Project Fund. (b) The Trustee shall deposit the amount of $_____________into the Reserve Fund. (c) The Trustee shall deposit the amount of $_____________ into the Costs of Issuance Fund. SECTION 3.03. Establishment and Application of Costs of Issuance Fund. The Trustee shall establish, maintain and hold in trust a separate fund designated as the “Costs of Issuance Fund” into which the Trustee shall deposit a portion of the proceeds of sale of the Bonds under Section 3.02(c). The Trustee shall disburse amounts in the Costs of Issuance Fund from time to time to pay the Costs of Issuance upon submission of a Written Requisition of the Authority stating the person to whom payment is to be made, the amount to be paid, the purpose for which the obligation was incurred and that such payment is a proper charge against said fund. The Trustee may conclusively rely on such Written Requisitions and shall be fully protected in relying thereon. On 120 days following issuance of the Bonds, or upon the earlier Written Request of the Authority, the Trustee shall transfer all amounts remaining in the Costs of Issuance Fund to the Bond Fund and shall thereupon close the Costs of Issuance Fund. Attachment 5 Page 299 of 858 -10- SECTION 3.04. Establishment and Application of Project Fund. There is hereby established in trust a special fund designated the “Project Fund,” which will be held by the Trustee and which will be kept separate and apart from all other funds and moneys held by the Trustee into which the Trustee shall deposit a portion of the proceeds of sale of the Bonds under Section 3.02(b). The Trustee shall disburse amounts in the Project Fund from time to time to pay the Project Costs upon submission of a Written Requisition of the Authority stating the person to whom payment is to be made, the amount to be paid, the purpose for which the obligation was incurred and that such payment is a proper charge against said fund. The Trustee may conclusively rely on such Written Requisitions and shall be fully protected in relying thereon. Upon the receipt of a Written Certificate of the City stating that the Project has been completed and that no further amounts are required to be disbursed from the Project Fund to pay Project Costs, the Trustee will close the Project Fund and transfer any remaining amounts to the Principal Account of the Bond Fund, to be applied as a credit towards the Lease Payments next coming due and payable. SECTION 3.05. Validity of Bonds. The recital contained in the Bonds that the same are issued under the laws of the State of California shall be conclusive evidence of their validity and of compliance with the provisions of law in their issuance. Attachment 5 Page 300 of 858 -11- ARTICLE IV REDEMPTION OF BONDS SECTION 4.01. Terms of Redemption. (a) Optional Redemption. The Bonds maturing on or before April 1, 2029, are not subject to redemption prior to their respective stated maturities. The Bonds maturing on or after April 1, _____, are subject to redemption in whole, or in part at the at the election of the Authority among maturities on such basis as shall be designated by the Authority and by lot within a maturity, at the option of the Authority, on any date on or after April 1, _____, from any available source of funds, at a redemption price equal to the principal amount thereof to be redeemed together with accrued interest thereon to the redemption date, without premium. The Authority shall give the Trustee written notice of its intention to redeem Bonds under Section 4.01(a) and Section 4.01(c), and the manner of selecting such Bonds for redemption from among the maturities thereof, in sufficient time to enable the Trustee to give notice of such redemption in accordance with Section 4.03. (b) The Term Bonds are subject to mandatory redemption in part by lot, at a redemption price equal to 100% of the principal amount thereof to be redeemed, without premium, in the aggregate respective principal amounts and on April 1 in the respective years as set forth in the following table; provided, however, that if some but not all of such Term Bonds have been redeemed pursuant to an optional redemption or special mandatory redemption from insurance or condemnation proceeds, the total amount of all future sinking fund payments shall be reduced by the aggregate principal amount of such Bonds so redeemed, to be allocated among such sinking fund payments on a pro rata basis in integral multiples of $5,000 (as set forth in a schedule provided by the Authority to the Trustee). Term Bonds Maturing April 1, _________ Sinking Fund Redemption Date (April 1) Principal Amount To Be Redeemed (maturity) (c) Extraordinary Mandatory Redemption. The Bonds are subject to mandatory redemption prior to maturity in whole or in part among maturities as determined by the Authority, on any date, at a redemption price equal to 100% of the principal amount thereof to be redeemed (plus accrued but unpaid interest to the redemption date), without premium, from Net Proceeds received under Section 5.5 of the Lease Agreement and from amounts deposited in the Insurance and Condemnation Fund pursuant to Section 5.07 hereof, and any other funds available for such purpose under this Indenture. Attachment 5 Page 301 of 858 -12- SECTION 4.02. Selection of Bonds for Redemption. Whenever provision is made in this Indenture for the redemption of less than all of the Bonds, the Bonds shall be selected for redemption on a pro-rata basis among outstanding maturities or as otherwise directed by the Authority. For purposes of such selection, the Trustee shall treat each Bond as consisting of separate $5,000 portions and each such portion shall be subject to redemption as if such portion were a separate Bond. SECTION 4.03. Notice of Redemption; Rescission. The Trustee shall mail notice of redemption of the Bonds by first class mail, postage prepaid, not less than 20 nor more than 60 days before any redemption date, to the respective Owners of any Bonds designated for redemption at their addresses appearing on the Registration Books and to one or more Securities Depositories and to the Information Services. Each notice of redemption shall state the date of the notice, the redemption date, the place or places of redemption, whether less than all of the Bonds (or all Bonds of a single maturity) are to be redeemed, the CUSIP numbers and (in the event that not all Bonds within a maturity are called for redemption) Bond numbers of the Bonds to be redeemed and the maturity or maturities of the Bonds to be redeemed, and in the case of Bonds to be redeemed in part only, the respective portions of the principal amount thereof to be redeemed. Each such notice shall also state that on the redemption date there will become due and payable on each of said Bonds the redemption price thereof, and that from and after such redemption date interest thereon shall cease to accrue, and shall require that such Bonds be then surrendered. Neither the failure to receive any notice nor any defect therein shall affect the sufficiency of the proceedings for such redemption or the cessation of accrual of interest from and after the redemption date. Notice of redemption of Bonds shall be given by the Trustee, at the expense of the Authority, for and on behalf of the Authority. The Authority has the right to rescind any notice of the redemption of Bonds under Section 4.01(a) by written notice to the Trustee on or prior to the dated fixed for redemption. Any notice of optional redemption shall be cancelled and annulled if for any reason funds will not be or are not available on the date fixed for redemption for the payment in full of the Bonds then called for redemption, and such cancellation shall not constitute an Event of Default. The Authority and the Trustee have no liability to the Bond Owners or any other party related to or arising from such rescission of redemption. The Trustee shall mail notice of such rescission of redemption in the same manner as the original notice of redemption was sent under this Section. SECTION 4.04. Partial Redemption of Bonds. Upon surrender of any Bonds redeemed in part only, the Authority shall execute and the Trustee shall authenticate and deliver to the Owner thereof, at the expense of the Authority, a new Bond or Bonds of authorized denominations equal in aggregate principal amount to the unredeemed portion of the Bonds surrendered. SECTION 4.05. Effect of Redemption. Notice of redemption having been duly given as aforesaid, and moneys for payment of the redemption price of, together with interest accrued to the date fixed for redemption on, including any applicable premium, the Bonds (or portions thereof) so called for redemption being held by the Trustee, on the redemption date designated in such notice, the Bonds (or portions thereof) so called for redemption shall become due and payable, interest on the Bonds so called for redemption shall cease to accrue, said Bonds (or portions thereof) shall cease to be entitled to any benefit or security under this Indenture, and the Owners of said Bonds shall have no rights in respect thereof except to receive payment of the redemption price thereof. Attachment 5 Page 302 of 858 -13- All Bonds redeemed under the provisions of this Article shall be canceled by the Trustee upon surrender thereof and destroyed in accordance with the retention policy of the Trustee then in effect. ARTICLE V REVENUES; FUNDS AND ACCOUNTS; PAYMENT OF PRINCIPAL AND INTEREST SECTION 5.01. Security for the Bonds; Bond Fund. (a) Pledge of Revenues and Other Amounts. Subject only to the provisions of this Indenture permitting the application thereof for the purposes and on the terms and conditions set forth herein, all of the Revenues and all amounts (including proceeds of the sale of the Bonds) held in any fund or account established under this Indenture are hereby pledged to secure the payment of the principal of and interest and premium (if any) on the Bonds in accordance with their terms and the provisions of this Indenture. Said pledge constitutes a lien on and security interest in the Revenues and such amounts and shall attach, be perfected and be valid and binding from and after the Closing Date, without the need for any physical delivery thereof or further act. (b) Assignment to Trustee. Under the Assignment Agreement, the Authority has transferred to the Trustee all of the rights of the Authority in the Lease (other than the rights of the Authority under Sections 4.5, 5.10, 7.3 and 8.4 thereof). The Trustee is entitled to collect and receive all of the Revenues, and any Revenues collected or received by the Authority shall be deemed to be held, and to have been collected or received, by the Authority as the agent of the Trustee and shall forthwith be paid by the Authority to the Trustee. The Trustee is also entitled to and shall, subject to the provisions of Article VIII, take all steps, actions and proceedings which the Trustee determines to be reasonably necessary in its judgment to enforce, either jointly with the Authority or separately, all of the rights of the Authority and all of the obligations of the City under the Lease. (c) Deposit of Revenues in Bond Fund. All Revenues shall be promptly deposited by the Trustee upon receipt thereof in a special fund designated as the “Bond Fund” which the Trustee shall establish, maintain and hold in trust; except that all moneys received by the Trustee and required hereunder or under the Lease to be deposited in the Redemption Fund or the Insurance and Condemnation Fund shall be promptly deposited in such funds. All Revenues deposited with the Trustee shall be held, disbursed, allocated and applied by the Trustee only as provided in this Indenture. Any surplus remaining in the Bond Fund, after payment in full of (i) the principal of and interest on the Bonds or provision therefore under Article X, and (ii) any applicable fees and expenses to the Trustee, shall be withdrawn by the Trustee and remitted to the City. SECTION 5.02. Allocation of Revenues. On or before each Interest Payment Date, the Trustee shall transfer from the Bond Fund and deposit into the following respective accounts (each of which the Trustee shall establish and maintain within the Bond Fund), the following amounts in the following order of priority: Attachment 5 Page 303 of 858 -14- (a) Deposit to Interest Account. The Trustee shall deposit in the Interest Account an amount required to cause the aggregate amount on deposit in the Interest Account to be at least equal to the amount of interest becoming due and payable on such Interest Payment Date on all Bonds then Outstanding. (b) Deposit to Principal Account. The Trustee shall deposit in the Principal Account an amount required to cause the aggregate amount on deposit in the Principal Account to equal the principal amount of the Bonds coming due and payable on such Interest Payment Date. SECTION 5.03. Application of Interest Account. All amounts in the Interest Account shall be used and withdrawn by the Trustee solely for the purpose of paying interest on the Bonds as it comes due and payable (including accrued interest on any Bonds purchased or redeemed prior to maturity). SECTION 5.04. Application of Principal Account. All amounts in the Principal Account shall be used and withdrawn by the Trustee solely to pay the principal amount of the Bonds at their respective maturity dates. SECTION 5.05. Reserve Fund. he Trustee shall establish a special fund designated as the “Reserve Fund” to be held by the Trustee in trust for the benefit of the Authority and the Owners of the Bonds, and applied solely as provided herein. Moneys in the Reserve Fund in the amount of the Reserve Requirement as calculated from time to time shall be held in trust as a reserve for the payment when due of the Lease Payments on behalf of the Authority. The Authority may replace moneys in the Reserve Fund may be replaced by a Qualified Reserve Fund Credit Instrument at any time. In the event the Reserve Fund is at any time maintained in cash rather than in the form of a Qualified Reserve Fund Credit Instrument, the Trustee shall retain in the Reserve Fund all earnings on the investment of amounts therein to the extent required to maintain the full amount of the Reserve Requirement on deposit in the Reserve Fund. All amounts on deposit in the Reserve Fund in excess of the Reserve Requirement as calculated from time to time, and all amounts derived from the investment of amounts in the Reserve Fund which are not required to be retained therein to maintain the Reserve Requirement, shall be transferred by the Trustee to the Bond Fund semiannually on the sixth (6th) Business Day prior to each Interest Payment Date. (b) Application of Reserve Fund. If five (5) Business Days prior to any Interest Payment Date the moneys available in the Bond Fund do not equal the amount of the Lease Payment then coming due and payable, the Trustee shall apply the moneys available in the Reserve Fund to make such payments on behalf of the Authority by transferring the amount necessary for this purpose to the Bond Fund. If there is no Qualified Reserve Fund Credit Instrument, then the Trustee shall apply the moneys available in the Reserve Fund to make such payments on behalf of the Authority by transferring the amount necessary for this purpose to the Bond Fund. Upon receipt of any delinquent Lease Payment with respect to which moneys have been advanced from the Reserve Fund, such Lease Payment shall be deposited in the Reserve Fund as needed to provide the Reserve Requirement, to the extent of such advance. Attachment 5 Page 304 of 858 -15- If on any Interest Payment Date, the moneys on deposit in the Reserve Fund and the Bond Fund are sufficient to pay or prepay all Outstanding Bonds, including all principal, interest and prepayment premiums (if any) thereon, the Trustee shall, upon the written request of the Authority, transfer all amounts then on deposit in the Reserve Fund to the Bond Fund to be applied for such purpose to the payment of the Lease Payments on behalf of the Authority. Any amounts remaining in the Reserve Fund (including any account therein) on the date of payment in full, or provision for such payment as provided in Section 10.01, of all obligations represented by the Outstanding Bonds and upon all amounts then due and owing to the Trustee, shall be withdrawn by the Trustee and at the written request of the Authority applied towards such payment or paid to the Authority. SECTION 5.06. Application of Redemption Fund. The Trustee shall establish and maintain the Redemption Fund, into which the Trustee shall deposit a portion of the Revenues received, in accordance with a Written Request of the Authority, amounts in which shall be used and withdrawn by the Trustee solely for the purpose of paying the principal and premium (if any) of the Bonds to be redeemed under Section 4.01(a) or (c); provided, however, that at any time prior to the selection of Bonds for redemption, the Trustee may apply such amounts to the purchase of Bonds at public or private sale, when and at such prices (including brokerage and other charges, but excluding accrued interest, which is payable from the Interest Account) as shall be directed under a Written Request of the Authority, except that the purchase price (exclusive of accrued interest) may not exceed the redemption price then applicable to the Bonds. The Trustee shall be entitled to conclusively rely on any Written Request of the Authority received under this Section, and shall be fully protected in relying thereon. SECTION 5.07. Insurance and Condemnation Fund. (a) Establishment of Fund. Upon the receipt of proceeds of insurance or eminent domain with respect to the Leased Property, the Trustee shall establish and maintain an Insurance and Condemnation Fund, to be held and applied as hereinafter set forth in this Section 5.07. (b) Deposit of Proceeds. Any Net Proceeds of insurance and eminent domain awards with respect to the Leased Property collected by the City or the Authority in accordance with Article VI of the Lease will be deposited by the Trustee promptly upon receipt thereof in the Insurance and Condemnation Fund. (c) Application of Proceeds. Net Proceeds deposited in the Insurance and Condemnation Fund will be used, as directed by the City, either (i) to replace, repair, restore, modify or improve the Leased Property if the City determines that such is economically feasible or in the best interests of the City, or (ii) to the extent not so used, to prepay the Lease Payments on the next optional prepayment date, and thereby redeem outstanding Bonds pursuant to optional redemption. Any proceeds of an insurance or eminent domain award deposited in the Insurance and Condemnation Fund to be applied to the prompt replacement, repair, restoration, modification or improvement of the damaged or destroyed portions of the Leased Property by the City, or to replace any Leased Property taken in eminent domain proceedings, shall be applied upon receipt of a Written Request of the City which: (i) states with respect to each payment to be made (A) the requisition number, (B) the name and address of the Attachment 5 Page 305 of 858 -16- person to whom payment is due, (C) the amount to be paid and (D) that each obligation mentioned therein has been properly incurred, is a proper charge against the Insurance and Condemnation Fund and has not been the basis of any previous withdrawal; and (ii) specifies in reasonable detail the nature of the obligation. Any balance of the proceeds remaining after such work has been completed as certified by the City under a Written Certificate to the Trustee shall be paid to the City. The Trustee shall be entitled to conclusively rely on any Written Request or Written Certificate received under this subsection (c) of this Section 5.07 and in each case, shall be fully protected in relying thereon. Notwithstanding the foregoing, however, in the event of condemnation, damage or destruction of the Leased Property in full, the Net Proceeds of such insurance are required to be used by the City to redeem the Bonds in full; except that, if such proceeds and other amounts available under this Indenture are not sufficient to redeem outstanding Bonds in full, the City is required to rebuild or replace the Leased Property. SECTION 5.08. Investments. All moneys in any of the funds or accounts established with the Trustee under this Indenture shall be invested by the Trustee solely in Permitted Investments. Such investments shall be directed by the Authority in a Written Request of the Authority filed with the Trustee at least two Business Days in advance of the making of such investments. In the absence of any such directions from the Authority, the Trustee shall hold such funds uninvested. Permitted Investments purchased as an investment of moneys in any fund shall be deemed to be part of such fund or account. To the extent Permitted Investments are registrable, such Permitted Investments must be registered in the name of the Trustee. All amounts in any of the funds or accounts established with the City under this Indenture shall be invested by the City solely in investments which are authorized for the investment of such funds under the applicable laws of the State of California and under the adopted investment policy of the City. All interest or gain derived from the investment of amounts in any of the funds or accounts established hereunder shall be deposited in the Bond Fund, provided, however, that earnings on the investment of the amount in the Project Fund shall be retained therein. For purposes of acquiring any investments hereunder, the Trustee may commingle funds held by it hereunder. The Trustee or any of its affiliates may act as principal or agent in the acquisition or disposition of any investment and may impose its customary charges therefor. The Trustee shall incur no liability for losses arising from any investments made under this Section 5.08. The Trustee may make any investments hereunder through its own bond or investment department or trust investment department, or those of its parent or any affiliate. The Trustee or any of its affiliates may act as sponsor, advisor or manager in connection with any investments made by the Trustee hereunder. The Trustee is hereby authorized, in making or disposing of any investment permitted by this Section, to deal with itself (in its individual capacity) or with any one or more of its affiliates, whether it or such affiliate is acting as an agent of the Trustee or for any third person or is dealing as a principal for its own account. The Authority acknowledges that to the extent regulations of the Comptroller of the Currency or other applicable regulatory entity grant the Authority the right to receive Attachment 5 Page 306 of 858 -17- brokerage confirmations of security transactions as they occur, the Authority will not receive such confirmations to the extent permitted by law. The Trustee will furnish the Authority a periodic cash transaction statements which shall include detail for all investment transactions made by the Trustee hereunder. Except as otherwise provided hereunder or agreed in writing among the parties hereto, the Authority shall retain the authority to institute, participate and join in any plan or reorganization, readjustment, merger or consolidation with respect to the issuer of any securities held hereunder, and, in general, to exercise each and every other power or right with respect to each such asset or investment as individuals generally have and enjoy with respect to their own assets and investment, including power to vote upon any securities. Unless the Authority notifies the Trustee otherwise in writing, the Trustee will provide the obligatory information to the registrant/issuer of any U.S. securities upon their request. Any objection will apply to all securities held in any trust account now and in the future unless the Authority notifies the Trustee in writing of such objection. SECTION 5.09. Valuation and Disposition of Investments. (a) Except as otherwise provided in subsection (b) of this Section, the Authority covenants that all investments of amounts deposited in any fund or account created by or under this Indenture, or otherwise containing gross proceeds of the Bonds (within the meaning of Section 148 of the Tax Code) shall be acquired, disposed of and valued (as of the date that valuation is required by this Indenture or the Tax Code) at the Fair Market Value thereof as such term is defined in subsection (d) below. The Trustee shall have no duty in connection with the determination of Fair Market Value other than to follow the investment directions of the Authority in any Written Request of the Authority. (b) Investments in funds or accounts (or portions thereof) that are subject to a yield restriction under applicable provisions of the Tax Code shall be valued at cost thereof, (consisting of present value thereof within the meaning of Section 148 of the Tax Code); provided that the Authority shall inform the Trustee which funds are subject to a yield restriction. (c) Except for any funds or accounts described in subsection (b), for the purpose of determining the amount in any fund or account established hereunder, the value of Permitted Investments credited to such fund shall be valued by the Trustee at least annually on or before January 1. The Trustee may sell or present for redemption, any Permitted Investment so purchased by the Trustee whenever it is necessary in order to provide moneys to meet any required payment, transfer, withdrawal or disbursement from the fund to which such Permitted Investment is credited, and the Trustee shall not be liable or responsible for any loss resulting from any such Permitted Investment. (d) For purposes of this Section 5.09, the term “Fair Market Value” means the price at which a willing buyer would purchase the investment from a willing seller in a bona fide, arm’s length transaction (determined as of the date the contract to purchase or sell the investment becomes binding) if the investment is traded on an established securities market (within the meaning of Section 1273 of the Tax Code) and, otherwise, the term “Fair Market Value” means the acquisition price in a bona fide arm’s length transaction (as referenced above) if (i) the investment is a certificate of deposit that is acquired in accordance with applicable regulations under the Tax Code, (ii) the investment is an Attachment 5 Page 307 of 858 -18- agreement with specifically negotiated withdrawal or reinvestment provisions and a specifically negotiated interest rate (for example, a guaranteed investment contract, a forward supply contract or other investment agreement) that is acquired in accordance with applicable regulations under the Tax Code, (iii) the investment is a United States Treasury Security -- State and Local Government Series which is acquired in accordance with applicable regulations of the United States Bureau of Public Debt, or (iv) the investment is any commingled investment fund in which the Authority and related parties do not own more than a 10% beneficial interest therein if the return paid by the fund is without regard to the source of the investment. To the extent required by the applicable regulations under the Tax Code, the term “investment” will include a hedge. (e) To the extent of any valuations made by the Trustee hereunder, the Trustee may utilize and rely upon computerized securities pricing services that may be available to it, including those available through its regular accounting system. Attachment 5 Page 308 of 858 -19- ARTICLE VI COVENANTS OF THE AUTHORITY SECTION 6.01. Punctual Payment. The Authority shall punctually pay or cause to be paid the principal of and interest and premium (if any) on all the Bonds in strict conformity with the terms of the Bonds and of this Indenture, according to the true intent and meaning thereof, but only out of the Revenues, and other amounts pledged for such payment as provided in this Indenture. SECTION 6.02. Extension of Payment of Bonds. The Authority shall not directly or indirectly extend or assent to the extension of the maturity of any of the Bonds or the time of payment of any claims for interest by the purchase of such Bonds or by any other arrangement, and in case the maturity of any of the Bonds or the time of payment of any such claims for interest shall be extended, such Bonds or claims for interest shall not be entitled, in case of any default hereunder, to the benefits of this Indenture, except subject to the prior payment in full of the principal of all of the Bonds then Outstanding and of all claims for interest thereon which have not been so extended. Nothing in this Section 6.02 limits the right of the Authority to issue Bonds for the purpose of refunding any Outstanding Bonds, and such issuance does not constitute an extension of maturity of the Bonds. SECTION 6.03. Against Encumbrances. The Authority shall not create, or permit the creation of, any pledge, lien, charge or other encumbrance upon the Revenues and other assets pledged or assigned under this Indenture while any of the Bonds are Outstanding, except the pledge and assignment created by this Indenture. Subject to this limitation, the Authority expressly reserves the right to enter into one or more other indentures for any of its corporate purposes, and reserves the right to issue other obligations for such purposes. SECTION 6.04. Power to Issue Bonds and Make Pledge and Assignment. The Authority is duly authorized under law to issue the Bonds and to enter into this Indenture and to pledge and assign the Revenues and other amounts purported to be pledged and assigned, respectively, under this Indenture and under the Assignment Agreement in the manner and to the extent provided in this Indenture and the Assignment Agreement. The Bonds and the provisions of this Indenture are and will be the legal, valid and binding special obligations of the Authority in accordance with their terms, and the Authority and the Trustee shall at all times, subject to the provisions of Article VIII and to the extent permitted by law, defend, preserve and protect said pledge and assignment of Revenues and other assets and all the rights of the Bond Owners under this Indenture against all claims and demands of all persons whomsoever. SECTION 6.05. Accounting Records. The Trustee shall at all times keep, or cause to be kept, proper books of record and account, prepared in accordance with corporate trust industry standards, in which accurate entries shall be made of all transactions made by it relating to the proceeds of Bonds and all funds and accounts established under this Indenture. The Trustee shall make such books of record and account available for inspection by the Authority and the City, during business hours, upon reasonable notice, and under reasonable circumstances. Attachment 5 Page 309 of 858 -20- SECTION 6.06. Limitation on Additional Obligations. The Authority covenants that no additional bonds, notes or other indebtedness shall be issued or incurred which are payable out of the Revenues in whole or in part. SECTION 6.07. Tax Covenants. (a) Private Business Use Limitation. The Authority shall assure that the proceeds of the Bonds are not used in a manner which would cause the Bonds to satisfy the private business tests of Section 141(b) of the Tax Code or the private loan financing test of Section 141(c) of the Tax Code. (b) Federal Guarantee Prohibition. The Authority may not take any action or permit or suffer any action to be taken if the result of the same would be to cause the Bonds to be “federally guaranteed” within the meaning of Section 149(b) of the Tax Code. (c) No Arbitrage. The Authority may not take, or permit or suffer to be taken by the Trustee or otherwise, any action with respect to the proceeds of the Bonds or of any other obligations which, if such action had been reasonably expected to have been taken, or had been deliberately and intentionally taken, on the Closing Date, would have caused the Bonds to be “arbitrage bonds” within the meaning of Section 148(a) of the Tax Code. (d) Maintenance of Tax Exemption. The Authority shall take all actions necessary to assure the exclusion of interest on the Bonds from the gross income of the Owners of the Bonds to the same extent as such interest is permitted to be excluded from gross income under the Tax Code as in effect on the Closing Date. (e) Rebate of Excess Investment Earnings to United States. The Authority shall calculate or cause to be calculated all amounts of excess investment earnings with respect to the Bonds which are required to be rebated to the United States of America under Section 148(f) of the Tax Code, at the times and in the manner required under the Tax Code. The Authority shall pay when due an amount equal to excess investment earnings to the United States of America in such amounts, at such times and in such manner as may be required under the Tax Code, such payments to be made from amounts paid by the City for that purpose under Section 4.5(d) of the Lease. The Authority shall keep or cause to be kept, and retain or cause to be retained for a period of six years following the retirement of the Bonds, records of the determinations made under this subsection (e). (f) Record Retention. Without limiting the requirements of subsection (e) above, the Authority will retain its records of all accounting and monitoring it carries out with respect to the Bonds for at least 3 years after the Bonds mature or are redeemed (whichever is earlier); however, if the Bonds are redeemed and refunded, the Authority will retain its records of accounting and monitoring at least 3 years after the earlier of the maturity or redemption of the obligations that refunded the Bonds. (g) Compliance with Tax Certificate. The Authority will comply with the provisions of the Tax Certificate and the Use of Proceeds Certificate with respect to the Bonds, which are incorporated herein as if fully set forth herein. The covenants of this Section will survive payment in full or defeasance of the Bonds. SECTION 6.08. Enforcement of Lease. The Trustee shall promptly collect all amounts (to the extent any such amounts are available for collection) due from the City Attachment 5 Page 310 of 858 -21- under the Lease. Subject to the provisions of Article VIII, the Trustee shall enforce, and take all steps, actions and proceedings which the Trustee determines to be reasonably necessary for the enforcement of all of its rights thereunder as assignee of the Authority and for the enforcement of all of the obligations of the City under the Lease. SECTION 6.09. Waiver of laws. The Authority shall not at any time insist upon or plead in any manner whatsoever, or claim or take the benefit or advantage of, any stay or extension law now or at any time hereafter in force that may affect the covenants and agreements contained in this Indenture or in the Bonds, and all benefit or advantage of any such law or laws is hereby expressly waived by the Authority to the extent permitted by law. SECTION 6.10. Further Assurances. The Authority shall make, execute and deliver any and all such further indentures, instruments and assurances as may be reasonably necessary or proper to carry out the intention or to facilitate the performance of this Indenture and for the better assuring and confirming unto the Owners of the Bonds of the rights and benefits provided in this Indenture. SECTION 6.11. Maintenance of Existence. The Authority shall maintain its existence as a joint exercise of powers agency while any Bonds are Outstanding, including by substituting a new member for the Successor Agency to the Redevelopment Agency of the City of Desert Hot Springs if determined to be necessary for compliance with this covenant.. Attachment 5 Page 311 of 858 -22- ARTICLE VII EVENTS OF DEFAULT AND REMEDIES SECTION 7.01. Events of Default. The following events constitute Events of Default hereunder: (a) Failure to pay any installment of the principal of any Bonds when due, whether at maturity as therein expressed, by proceedings for redemption, by acceleration, or otherwise. (b) Failure to pay any installment of interest on the Bonds when due. (c) Failure by the Authority to observe and perform any of the other covenants, agreements or conditions on its part contained in this Indenture or in the Bonds, if such failure has continued for a period of 30 days after written notice thereof, specifying such failure and requiring the same to be remedied, has been given to the Authority by the Trustee; provided, however, if in the reasonable opinion of the Authority the failure stated in the notice can be corrected, but not within such 30-day period, such failure shall not constitute an Event of Default if the Authority institutes corrective action within such 30- day period and thereafter diligently and in good faith cures the failure in a reasonable period of time. (d) The commencement by the Authority of a voluntary case under Title 11 of the United States Code or any substitute or successor statute. (e) The occurrence and continuation of an event of default under and as defined in the Lease. SECTION 7.02. Remedies Upon Event of Default. If any Event of Default occurs, then, and in each and every such case during the continuance of such Event of Default, the Trustee in its discretion may, and upon the written request of the Owners of a majority in aggregate principal amount of the Bonds then outstanding, and upon being indemnified to its satisfaction therefor, the Trustee shall, proceed to protect or enforce its rights or the rights of such Owners by such appropriate action, suit, mandamus or other proceedings as it deems most effectual to protect and enforce any such right, at law or in equity, including but not limited to enforcement of any and all rights granted to the Authority or the Trustee under the Lease. Any such declaration is subject to the condition that if, at any time after such declaration and before any judgment or decree for the payment of the moneys due shall have been obtained or entered, the Authority deposits with the Trustee a sum sufficient to pay all the principal of and installments of interest on the Bonds payment of which is overdue, with interest on such overdue principal at the rate borne by the respective Bonds to the extent permitted by law, and the reasonable fees, charges and expenses (including those of its legal counsel, including the allocated costs of internal attorneys) of the Trustee, and any and all other Events of Default known to the Trustee (other than in the payment Attachment 5 Page 312 of 858 -23- of principal of and interest on the Bonds due and payable solely by reason of such declaration) have been made good or cured to the satisfaction of the Trustee or provision deemed by the Trustee to be adequate has been made therefor, then, and in every such case, the Owners of a majority in aggregate principal amount of the Bonds then Outstanding, by written notice to the Authority, the City and the Trustee, may, on behalf of the Owners of all of the Bonds, rescind and annul such declaration and its consequences and waive such Event of Default; but no such rescission and annulment shall extend to or shall affect any subsequent Event of Default, or shall impair or exhaust any right or power consequent thereon. SECTION 7.03. Application of Revenues and Other Funds After Default. If an Event of Default occurs and is continuing, all Revenues and any other funds then held or thereafter received by the Trustee under any of the provisions of this Indenture shall be applied by the Trustee in the following order of priority: (a) To the payment of reasonable fees, charges and expenses of the Trustee (including reasonable fees and disbursements of its legal counsel including outside counsel and the allocated costs of internal attorneys and fees and expenses of its agents and advisors) incurred in and about the performance of its powers and duties under this Indenture; (b) To the payment of the principal of and interest then due on the Bonds (upon presentation of the Bonds to be paid, and stamping or otherwise noting thereon of the payment if only partially paid, or surrender thereof if fully paid) in accordance with the provisions of this Indenture, as follows: First: To the payment to the persons entitled thereto of all installments of interest then due in the order of the maturity of such installments, and, if the amount available shall not be sufficient to pay in full any installment or installments maturing on the same date, then to the payment thereof ratably, according to the amounts due thereon, to the persons entitled thereto, without any discrimination or preference; Second: To the payment to the persons entitled thereto of the unpaid principal of any Bonds which shall have become due, whether at maturity or by acceleration or redemption, with interest on the overdue principal at the rate borne by the respective Bonds (to the extent permitted by law), and, if the amount available shall not be sufficient to pay in full all the Bonds, together with such interest, then to the payment thereof ratably, according to the amounts of principal due on such date to the persons entitled thereto, without any discrimination or preference; and SECTION 7.04. Trustee to Represent Bond Owners. The Trustee is hereby irrevocably appointed (and the successive respective Owners of the Bonds, by taking and holding the same, shall be conclusively deemed to have so appointed the Trustee) as Attachment 5 Page 313 of 858 -24- trustee and true and lawful attorney-in-fact of the Owners of the Bonds for the purpose of exercising and prosecuting on their behalf such rights and remedies as may be available to such Owners under the provisions of the Bonds, this Indenture and applicable provisions of any law. All rights of action under this Indenture or the Bonds or otherwise may be prosecuted and enforced by the Trustee without the possession of any of the Bonds or the production thereof in any proceeding relating thereto, and any such suit, action or proceeding instituted by the Trustee shall be brought in the name of the Trustee for the benefit and protection of all the Owners of such Bonds, subject to the provisions of this Indenture. SECTION 7.05. Limitation on Bond Owners’ Right to Sue. Notwithstanding any other provision hereof, no Owner of any Bonds has the right to institute any suit, action or proceeding at law or in equity, for the protection or enforcement of any right or remedy under this Indenture, the Lease or any other applicable law with respect to such Bonds, unless (a) such Owner has given to the Trustee written notice of the occurrence of an Event of Default; (b) the Owners of a majority in aggregate principal amount of the Bonds then Outstanding have requested the Trustee in writing to exercise the powers hereinbefore granted or to institute such suit, action or proceeding in its own name; (c) such Owner or Owners have tendered to the Trustee reasonable indemnity against the costs, expenses and liabilities to be incurred in compliance with such request; (d) the Trustee has failed to comply with such request for a period of 60 days after such written request has been received by, and said tender of indemnity has been made to, the Trustee; and (e) no direction inconsistent with such written request has been given to the Trustee during such 60 day period by the Owners of a majority in aggregate principal amount of the Bonds then Outstanding. Such notification, request, tender of indemnity and refusal or omission are hereby declared, in every case, to be conditions precedent to the exercise by any Owner of Bonds of any remedy hereunder or under law; it being understood and intended that no one or more Owners of Bonds shall have any right in any manner whatever by his or their action to affect, disturb or prejudice the security of this Indenture or the rights of any other Owners of Bonds, or to enforce any right under the Bonds, this Indenture, the Lease or other applicable law with respect to the Bonds, except in the manner herein provided, and that all proceedings at law or in equity to enforce any such right shall be instituted, had and maintained in the manner herein provided and for the benefit and protection of all Owners of the Outstanding Bonds, subject to the provisions of this Indenture. SECTION 7.06. Absolute Obligation of Board. Nothing herein or in the Bonds contained affects or impairs the obligation of the Authority, which is absolute and unconditional, to pay the principal of and interest and premium (if any) on the Bonds to the respective Owners of the Bonds at their respective dates of maturity, or upon acceleration or call for redemption, as herein provided, but only out of the Revenues and other assets herein pledged therefor, or affect or impair the right of such Owners, which is also absolute and unconditional, to enforce such payment by virtue of the contract embodied in the Bonds. SECTION 7.07. Termination of Proceedings. In case any proceedings taken by the Trustee or by any one or more Bond Owners on account of any Event of Default have been discontinued or abandoned for any reason or have been determined adversely to the Trustee or the Bond Owners, then in every such case the Authority, the Trustee and the Bond Owners, subject to any determination in such proceedings, shall be restored to Attachment 5 Page 314 of 858 -25- their former positions and rights hereunder, severally and respectively, and all rights, remedies, powers and duties of the Authority, the Trustee and the Bond Owners shall continue as though no such proceedings had been taken. SECTION 7.08. Remedies Not Exclusive. No remedy herein conferred upon or reserved to the Trustee or to the Owners of the Bonds is intended to be exclusive of any other remedy or remedies, and each and every such remedy, to the extent permitted by law, shall be cumulative and in addition to any other remedy given hereunder or now or hereafter existing at law or in equity or otherwise. SECTION 7.09. No Waiver of Default. No delay or omission of the Trustee or any Owner of the Bonds to exercise any right or power arising upon the occurrence of any default or Event of Default shall impair any such right or power or shall be construed to be a waiver of any such default or Event of Default or an acquiescence therein; and every power and remedy given by this Indenture to the Trustee or the Owners of the Bonds may be exercised from time to time and as often as may be deemed expedient by the Trustee or the Bond Owners. SECTION 7.10. Notice to the Bond Owners of Default. Upon becoming aware of the occurrence of an Event of Default, but in no event later than five Business Days following becoming aware of such occurrence, the Trustee shall give written notice thereof by first class mail, postage prepaid, to the Owner of each Outstanding Bond, unless such Event of Default has been cured before the giving of such notice; provided, however that except in the case of an Event of Default described in Sections 7.01(a) or 7.01(b), the Trustee may elect not to give such notice to the Bond Owners if and so long as the Trustee in good faith determines that it is in the best interests of the Bond Owners not to give such notice. Attachment 5 Page 315 of 858 -26- ARTICLE VIII THE TRUSTEE SECTION 8.01. Duties, Immunities and Liabilities of Trustee. (a) The Trustee shall, prior to the occurrence of an Event of Default, and after the curing or waiving of all Events of Default which may have occurred, perform such duties and only such duties as are specifically set forth in this Indenture and no implied covenants or duties will be read into this Indenture against the Trustee. The Trustee shall, during the existence of any Event of Default (which has not been cured or waived), exercise such of the rights and powers vested in it by this Indenture, and use the same degree of care and skill in their exercise, as a reasonable corporate trustee would exercise or use. (b) The City may remove the Trustee at any time, and shall remove the Trustee (i) if at any time requested to do so by an instrument or concurrent instruments in writing signed by the Owners of not less than a majority in aggregate principal amount of the Bonds then Outstanding (or their attorneys duly authorized in writing) or (ii) if at any time (A) the Trustee ceases to be eligible in accordance with subsection (e) of this Section 8.01, (B) becomes incapable of acting, (C) is adjudged a bankrupt or insolvent, (D) a receiver of the Trustee or its property is appointed, or (E) any public officer takes control or charge of the Trustee or of its property or affairs for the purpose of rehabilitation, conservation or liquidation. The City may accomplish such removal by giving 30 days written notice to the Trustee, whereupon the City will appoint a successor Trustee by an instrument in writing. (c) The Trustee may at any time resign and be discharged from its duties and obligations hereunder by giving written notice of such resignation to the Authority and the City, and by giving the Bond Owners notice of such resignation by electronic notice. (d) Any removal or resignation of the Trustee and appointment of a successor Trustee becomes effective upon acceptance of appointment by the successor Trustee. If no successor Trustee has been appointed and accepted appointment within 30 days following giving notice of removal or notice of resignation as aforesaid, the resigning Trustee, at the expense of the City, or any Owner (on behalf of such Owner and all other Owners) may petition any federal or state court for the appointment of a successor Trustee, and such court may thereupon, after such notice (if any) as it may deem proper, appoint such successor Trustee. Any successor Trustee appointed under this Indenture shall signify its acceptance of such appointment by executing and delivering to the City and to its predecessor Trustee a written acceptance thereof, and to the predecessor Trustee an instrument indemnifying the predecessor Trustee for any costs or claims arising during the time the successor Trustee serves as Trustee hereunder, and such successor Trustee, without any further act, deed or conveyance, shall become vested with all the moneys, estates, properties, rights, powers, trusts, duties and obligations of such predecessor Trustee, with like effect as if originally named Trustee herein; but, nevertheless, upon the receipt by the predecessor Trustee of the Request of the City or the request of the successor Trustee, such predecessor Trustee shall execute and deliver any and all instruments of conveyance or further assurance and do such other things as Attachment 5 Page 316 of 858 -27- may reasonably be required for more fully and certainly vesting in and confirming to such successor Trustee all the right, title and interest of such predecessor Trustee in and to any property held by it under this Indenture and shall pay over, transfer, assign and deliver to the successor Trustee any money or other property subject to the trusts and conditions herein set forth. Upon request of the successor Trustee, the City will execute and deliver any and all instruments as may be reasonably required for more fully and certainly vesting in and confirming to such successor Trustee all such moneys, estates, properties, rights, powers, trusts, duties and obligations. Upon acceptance of appointment by a successor Trustee as provided in this subsection, the City will mail or cause the successor Trustee to mail, by first class mail postage prepaid, a notice of the succession of such Trustee to the trusts hereunder to each rating agency which then maintains a rating on the Bonds and to the Owners at the addresses shown on the Registration Books. If the City fails to mail such notice within 15 days after acceptance of appointment by the successor Trustee, the successor Trustee shall cause such notice to be mailed at the expense of the City. (e) Any Trustee appointed under the provisions of this Section in succession to the Trustee shall (i) be a company or bank having trust powers, (ii) have a corporate trust office in the State of California, (iii) have (or be part of a bank holding company system whose bank holding company has) a combined capital and surplus of at least $50,000,000, and (iv) be subject to supervision or examination by federal or state authority. If such bank or company publishes a report of condition at least annually, under law or to the requirements of any supervising or examining authority above referred to, then for the purpose of this subsection the combined capital and surplus of such bank or company is deemed to be its combined capital and surplus as set forth in its most recent report of condition so published. In case at any time the Trustee shall cease to be eligible in accordance with the provisions of this subsection (e), the Trustee shall resign immediately in the manner and with the effect specified in subsection (c) of this Section. SECTION 8.02. Merger or Consolidation. Any bank or company into which the Trustee may be merged or converted or with which either of them may be consolidated or any bank or company resulting from any merger, conversion or consolidation to which it shall be a party or any bank or company to which the Trustee may sell or transfer all or substantially all of its corporate trust business, provided such bank or company shall be eligible under subsection (e) of Section 8.01, shall be the successor to such Trustee without the execution or filing of any paper or any further act, anything herein to the contrary notwithstanding. SECTION 8.03. Liability of Trustee. (a) The recitals of facts herein and in the Bonds contained shall be taken as statements of the City, and the Trustee assumes no responsibility for the correctness of the same, nor does it have any liability whatsoever therefor, nor does it make any representations as to the validity or sufficiency of this Indenture or of the Bonds nor does it incur any responsibility in respect thereof, other than as expressly stated herein. The Trustee is, however, be responsible for its representations contained in its certificate of authentication on the Bonds. The Trustee is not liable in connection with the performance of its duties hereunder, except for its own negligence or willful misconduct. The Trustee is not liable for the acts of any agents of the Trustee selected by it with due care. The Trustee may become the Owner of Bonds with the same rights it would have if they were Attachment 5 Page 317 of 858 -28- not Trustee and, to the extent permitted by law, may act as depository for and permit any of its officers or directors to act as a member of, or in any other capacity with respect to, any committee formed to protect the rights of the Owners, whether or not such committee shall represent the Owners of a majority in principal amount of the Bonds then Outstanding. The Trustee, either as principal or agent, may engage in or be entrusted in any financial or other transaction with the City. (b) The Trustee is not liable with respect to any action taken or omitted to be taken by it in accordance with the direction of the Owners of a majority in aggregate principal amount of the Bonds at the time Outstanding relating to the time, method and place of conducting any proceeding for any remedy available to the Trustee, or exercising any trust or power conferred upon the Trustee under this Indenture. (c) The Trustee is not liable for any action taken by it in good faith and believed by it to be authorized or within the discretion or rights or powers conferred upon it by this Indenture, except for actions arising from the negligence or willful misconduct of the Trustee. The permissive right of the Trustee to do things enumerated hereunder shall not be construed as a mandatory duty. (d) The Trustee will not be deemed to have knowledge of any Event of Default hereunder unless and until a responsible officer of the Trustee has actual knowledge thereof, or unless and until a responsible officer of the Trustee has received written notice thereof at its Office. Except as otherwise expressly provided herein, the Trustee shall not be bound to ascertain or inquire as to the performance or observance of any of the terms, conditions, covenants or agreements herein or of any of the documents executed in connection with the Bonds, or as to the existence of an Event of Default hereunder or thereunder. The Trustee shall not be responsible for the City’s payment of principal and interest on the Bonds, the City’s observance or performance of any other covenants, conditions or terms contained herein, or the validity or effectiveness of any collateral given to or held by it. Without limiting the generality of the foregoing, and notwithstanding anything herein to the contrary, the Trustee is not responsible for reviewing the contents of any financial statements furnished to the Trustee and may rely conclusively on the Certificate of the City accompanying such financial statements to establish the City’s compliance with its financial covenants hereunder. (e) No provision in this Indenture requires the Trustee to risk or expend its own funds or otherwise incur any financial liability hereunder. The Trustee is entitled to receive interest on any moneys advanced by it hereunder, at the maximum rate permitted by law. (f) The Trustee may establish additional accounts or subaccounts of the funds established hereunder as the Trustee deems necessary or prudent in furtherance of its duties under this Indenture. (g) The Trustee has no responsibility or liability whatsoever with respect to any information, statement, or recital in any official statement, offering memorandum or any other disclosure material prepared or distributed with respect to the Bonds, nor shall the Trustee have any obligation to review any such material, and any such review by the Trustee will not be deemed to create any obligation, duty or liability on the part of the Trustee. Attachment 5 Page 318 of 858 -29- (h) Before taking any action under Article VIII hereof the Trustee may require indemnity satisfactory to the Trustee be furnished to it to hold the Trustee harmless from any expenses whatsoever and to protect it against any liability it may incur hereunder. (i) The immunities extended to the Trustee also extend to its directors, officers, employees and agents. (j) The permissive right of the Trustee to do things enumerated in this Indenture shall not be construed as a duty. (k) The Trustee may execute any of the trusts or powers hereof and perform any of its duties through attorneys, agents and receivers and shall not be answerable for the conduct of the same if appointed by it with reasonable care. (l) The Trustee will not be considered in breach of or in default in its obligations hereunder or progress in respect thereto in the event of delay in the performance of such obligations due to unforeseeable causes beyond its control and without its fault or negligence, including, but not limited to, acts of God or of the public enemy or terrorists, acts of a government, acts of civil or military authority, acts of the other party, fires, floods, epidemics, pandemics, quarantine restrictions, strikes, freight embargoes, earthquakes, explosion, mob violence, riot, inability to procure or general sabotage or rationing of labor, equipment, facilities, sources of energy, material or supplies in the open market, litigation or arbitration involving a party or others relating to zoning or other governmental action or inaction pertaining to any project refinanced with the proceeds of the Bonds, malicious mischief, condemnation, and unusually severe weather or delays of suppliers or subcontractors due to such causes or any similar event and/or occurrences beyond the control of the Trustee. (m) The Trustee shall not be accountable for the use or application by the Borrower of any of the Bonds or the proceeds thereof or for the use or application of any money paid over by the Trustee in accordance with the provisions of this Indenture or for the use and application of money received by any paying agent. (n) The Trustee shall have the right to accept and act upon instructions, including funds transfer instructions (“Instructions”) given pursuant to this Indenture and delivered using Electronic Means (“Electronic Means” means the following communications methods: e-mail, facsimile transmission, secure electronic transmission containing applicable authorization codes, passwords and/or authentication keys issued by the Trustee, or another method or system specified by the Trustee as available for use in connection with its services hereunder); provided, however, that the City shall provide to the Trustee an incumbency certificate listing officers with the authority to provide such Instructions (“Authorized Officers”) and containing specimen signatures of such Authorized Officers, which incumbency certificate shall be amended by the City, whenever a person is to be added or deleted from the listing. If the City elects to give the Trustee Instructions using Electronic Means and the Trustee in its discretion elects to act upon such Instructions, the Trustee’s understanding of such Instructions shall be deemed controlling. The City understands and agrees that the Trustee cannot determine the identity of the actual sender of such Instructions and that the Trustee shall conclusively presume that directions that purport to have been sent by an Authorized Officer listed on the incumbency certificate provided to the Trustee have been sent by such Authorized Officer. The City shall be responsible for ensuring that only Authorized Officers transmit Attachment 5 Page 319 of 858 -30- such Instructions to the Trustee and that the City and all Authorized Officers are solely responsible to safeguard the use and confidentiality of applicable user and authorization codes, passwords and/or authentication keys upon receipt by the City. The Trustee shall not be liable for any losses, costs or expenses arising directly or indirectly from the Trustee’s reliance upon and compliance with such Instructions notwithstanding such directions conflict or are inconsistent with a subsequent written instruction. The City agrees: (i) to assume all risks arising out of the use of Electronic Means to submit Instructions to the Trustee, including without limitation the risk of the Trustee acting on unauthorized Instructions, and the risk of interception and misuse by third parties; (ii) that it is fully informed of the protections and risks associated with the various methods of transmitting Instructions to the Trustee and that there may be more secure methods of transmitting Instructions than the method(s) selected by the City; (iii) that the security procedures (if any) to be followed in connection with its transmission of Instructions provide to it a commercially reasonable degree of protection in light of its particular needs and circumstances; and (iv) to notify the Trustee immediately upon learning of any compromise or unauthorized use of the security procedures. The Trustee may rely conclusively upon the investment direction of the District as to the suitability and legality of the directed investments. SECTION 8.04. Right to Rely on Documents. The Trustee is protected in acting upon any notice, resolution, requisition, request, consent, order, certificate, report, opinion or other paper or document believed by it to be genuine and to have been signed or presented by the proper party or parties. The Trustee may consult with counsel, including, without limitation, Bond Counsel or other counsel of or to the City, with regard to legal questions, and the opinion of such counsel shall be full and complete authorization and protection in respect of any action taken or suffered by the Trustee hereunder in accordance therewith. The Trustee is not bound to recognize any person as the Owner of a Bond unless and until such Bond is submitted for inspection, if required, and such person’s title thereto is established to the satisfaction of the Trustee. Whenever in the administration of the trusts imposed upon it by this Indenture the Trustee deems it necessary or desirable that a matter be proved or established prior to taking or suffering any action hereunder, such matter (unless other evidence in respect thereof be herein specifically prescribed) may be deemed to be conclusively proved and established by a Certificate of the City, which shall be full warrant to the Trustee for any action taken or suffered in good faith under the provisions of this Indenture in reliance upon such Certificate, but in its discretion the Trustee may (but has no duty to), in lieu thereof, accept other evidence of such matter or may require such additional evidence as to it may deem reasonable. The Trustee may conclusively rely on any certificate or report of any Independent Accountant appointed by the City. SECTION 8.05. Preservation and Inspection of Documents. The Trustee shall retain in its possession all documents received by it under the provisions of this Indenture, which are subject during normal business hours, and upon reasonable prior written notice, to the inspection of the City and any Owner, and their agents and representatives duly authorized in writing. SECTION 8.06. Compensation and Indemnification. Absent any agreement to the contrary, the City shall pay to the Trustee from time to time compensation for all services Attachment 5 Page 320 of 858 -31- rendered under this Indenture and also all expenses, charges, legal and consulting fees and other disbursements and those of its attorneys (including any allocated costs of internal counsel), agents and employees, incurred in and about the performance of its powers and duties under this Indenture. The City further covenants to indemnify the Trustee and its officers, directors, agents and employees, against any loss, expense (including legal fees and expenses), suits, claims, judgments, damages and liabilities, whether or not litigated, which it may incur arising out of or in the exercise and performance of its powers and duties hereunder, including the costs and expenses of defending against any claim of liability and of enforcing any remedies hereunder and under any related documents, but excluding any and all losses, expenses and liabilities which are due to the negligence or willful misconduct of the Trustee, its officers, directors, agents or employees. The obligations of the City under this Section 8.06 shall survive resignation or removal of the Trustee under this Indenture and payment of the Bonds and discharge of this Indenture. When the Trustee incurs expenses or renders services after the occurrence of an Event of Default, such expenses and the compensation for such services are intended to constitute expenses of administration under any federal or state bankruptcy, insolvency, arrangement, moratorium, reorganization or other debtor relief law. Upon an Event of Default, and only upon an Event of Default, the Trustee shall have a first lien with right of payment prior to payment on account of principal of and premium, if any, and interest on any Bond, upon the trust estate for the foregoing fees, charges and expenses incurred by it. SECTION 8.07. Accounting Records and Financial Statements. The Trustee shall at all times keep, or cause to be kept, proper books of record and account, prepared in accordance with corporate trust industry standards, in which complete and accurate entries shall be made of all transactions made by it relating to the proceeds of the Bonds and all funds and accounts established and held by the Trustee under this Indenture. Such books of record and account shall be available for inspection by the City at reasonable hours, during regular business hours, with reasonable prior notice and under reasonable circumstances. The Trustee shall furnish to the City, at least semiannually, an accounting (which may be in the form of its customary account statements) of all transactions relating to the proceeds of the Bonds and all funds and accounts held by the Trustee under this Indenture. Attachment 5 Page 321 of 858 -32- ARTICLE IX MODIFICATION OR AMENDMENT HEREOF SECTION 9.01. Amendments Permitted. (a) Amendments With Bond Owner Consent. This Indenture and the rights and obligations of the Authority and of the Owners of the Bonds and of the Trustee may be modified or amended from time to time and at any time by Supplemental Indenture, which the Authority and the Trustee may enter into when the written consents of the Owners of a majority in aggregate principal amount of all Bonds then Outstanding are filed with the Trustee. No such modification or amendment may (i) extend the fixed maturity of any Bonds, or reduce the amount of principal thereof or extend the time of payment, or change the method of computing the rate of interest thereon, or extend the time of payment of interest thereon, without the consent of the Owner of each Bond so affected, or (ii) reduce the aforesaid percentage of Bonds the consent of the Owners of which is required to effect any such modification or amendment, or permit the creation of any lien on the Revenues and other assets pledged under this Indenture prior to or on a parity with the lien created by this Indenture except as permitted herein, or deprive the Owners of the Bonds of the lien created by this Indenture on such Revenues and other assets (except as expressly provided in this Indenture), without the consent of the Owners of all of the Bonds then Outstanding. It is not necessary for the consent of the Bond Owners to approve the particular form of any Supplemental Indenture, but it is sufficient if such consent approves the substance thereof. (b) Amendments Without Owner Consent. This Indenture and the rights and obligations of the Authority, of the Trustee and the Owners of the Bonds may also be modified or amended from time to time and at any time by a Supplemental Indenture, which the Authority and the Trustee may enter into without the consent of any Bond Owners, if the Trustee has been furnished an opinion of counsel that the provisions of such Supplemental Indenture shall not materially adversely affect the interests of the Owners of the Bonds, including, without limitation, for any one or more of the following purposes: (i) to add to the covenants and agreements of the Authority in this Indenture contained, other covenants and agreements thereafter to be observed, to pledge or assign additional security for the Bonds (or any portion thereof), or to surrender any right or power herein reserved to or conferred upon the Authority; (ii) to cure any ambiguity, inconsistency or omission, or to cure or correct any defective provision, contained in this Indenture, or in regard to matters or questions arising under this Indenture, as the Authority deems necessary or desirable, provided that such modification or amendment does not materially adversely affect the interests of the Bond Owners, in the opinion of Bond Counsel filed with the Trustee; (iii) to modify, amend or supplement this Indenture in such manner as to permit the qualification hereof under the Trust Indenture Act of 1939, Attachment 5 Page 322 of 858 -33- as amended, or any similar federal statute hereafter in effect, and to add such other terms, conditions and provisions as may be permitted by said act or similar federal statute; (iv) to facilitate the issuance of additional obligations which are payable from additional rental payments under the Lease; or (v) to modify, amend or supplement this Indenture in such manner as to assure that the interest on the Bonds remains excluded from gross income under the Tax Code. (c) Limitation. The Trustee is not obligated to enter into any Supplemental Indenture authorized by subsections (a) or (b) of this Section 9.01 which materially adversely affects the Trustee’s own rights, duties or immunities under this Indenture or otherwise. (d) Bond Counsel Opinion Requirement. Prior to the Trustee entering into any Supplemental Indenture hereunder, the Authority shall deliver to the Trustee an opinion of Bond Counsel stating, in substance, that such Supplemental Indenture has been adopted in compliance with the requirements of this Indenture. (e) Notice of Amendments. The Authority shall deliver or cause to be delivered a draft of any Supplemental Indenture to each rating agency which then maintains a rating on the Bonds, at least 10 days prior to the effective date of such Supplemental Indenture under this Section 9.01. SECTION 9.02. Effect of Supplemental Indenture. Upon the execution of any Supplemental Indenture under this Article IX, this Indenture shall be deemed to be modified and amended in accordance therewith, and the respective rights, duties and obligations under this Indenture of the Authority, the Trustee and all Owners of Bonds Outstanding shall thereafter be determined, exercised and enforced hereunder subject in all respects to such modification and amendment, and all the terms and conditions of any such Supplemental Indenture shall be deemed to be part of the terms and conditions of this Indenture for any and all purposes. SECTION 9.03. Endorsement of Bonds; Preparation of New Bonds. Bonds delivered after the execution of any Supplemental Indenture under this Article may, and if the Authority so determines shall, bear a notation by endorsement or otherwise in form approved by the Authority as to any modification or amendment provided for in such Supplemental Indenture, and, in that case, upon demand on the Owner of any Bonds Outstanding at the time of such execution and presentation of his Bonds for the purpose at the Office of the Trustee or at such additional offices as the Trustee may select and designate for that purpose, a suitable notation shall be made on such Bonds. If the Supplemental Indenture shall so provide, new Bonds so modified as to conform, in the opinion of the Authority, to any modification or amendment contained in such Supplemental Indenture, shall be prepared and executed by the Authority and authenticated by the Trustee, and upon demand on the Owners of any Bonds then Outstanding shall be exchanged at the Office of the Trustee, without cost to any Bond Owner, for Bonds then Outstanding, upon surrender for cancellation of such Bonds, in equal aggregate principal amount of the same maturity. Attachment 5 Page 323 of 858 -34- SECTION 9.04. Amendment of Particular Bonds. The provisions of this Article IX do not prevent any Bond Owner from accepting any amendment as to the particular Bonds held by such Owner. Attachment 5 Page 324 of 858 -35- ARTICLE X DEFEASANCE SECTION 10.01. Discharge of Indenture. Any or all of the Outstanding Bonds may be paid by the Authority in any of the following ways, provided that the Authority also pays or causes to be paid any other sums payable hereunder by the Authority: (a) by paying or causing to be paid the principal of and interest on such Bonds, as and when the same become due and payable; (b) by depositing with the Trustee or an escrow agent, at or before maturity, money or securities in the necessary amount (as provided in Section 10.03) to pay or redeem such Bonds; or (c) by delivering all of such Bonds to the Trustee for cancellation. If the Authority also pays or causes to be paid all other sums payable hereunder by the Authority, then and in that case, at the election of the Authority (evidenced by a Written Certificate of the Authority, filed with the Trustee, signifying the intention of the Authority to discharge all such indebtedness and this Indenture), and notwithstanding that any of such Bonds shall not have been surrendered for payment, this Indenture and the pledge of Revenues and other assets made under this Indenture with respect to such Bonds and all covenants, agreements and other obligations of the Authority under this Indenture with respect to such Bonds shall cease, terminate, become void and be completely discharged and satisfied, subject to Section 10.02. In such event, upon the Written Request of the Authority, the Trustee shall execute and deliver to the Authority all such instruments as may be necessary or desirable to evidence such discharge and satisfaction, and the Trustee shall pay over, transfer, assign or deliver to the City all moneys or securities or other property held by it under this Indenture which are not required for the payment or redemption of any of such Bonds not theretofore surrendered for such payment or redemption. The Trustee is entitled to conclusively rely on any such Written Certificate or Written Request and, in each case, is fully protected in relying thereon. SECTION 10.02. Discharge of Liability on Bonds. Upon the deposit with the Trustee, in trust, at or before maturity, of money or securities in the necessary amount (as provided in Section 10.03) to pay or redeem any Outstanding Bonds (whether upon or prior to the maturity or the redemption date of such Bonds), provided that, if such Bonds are to be redeemed prior to maturity, notice of such redemption shall have been given as provided in Article IV or provision satisfactory to the Trustee shall have been made for the giving of such notice, then all liability of the Authority in respect of such Bonds shall cease, terminate and be completely discharged, and the Owners thereof shall thereafter be entitled only to payment out of such money or securities deposited with the Trustee as aforesaid for their payment, subject, however, to the provisions of Section 10.04. The Authority may at any time surrender to the Trustee, for cancellation by Trustee, any Bonds previously issued and delivered, which the Authority may have acquired in any manner whatsoever, and such Bonds, upon such surrender and cancellation, shall be deemed to be paid and retired. Attachment 5 Page 325 of 858 -36- SECTION 10.03. Deposit of Money or Securities with Trustee. Whenever in this Indenture it is provided or permitted that there be deposited with or held in trust by the Trustee money or securities in the necessary amount to pay or redeem any Bonds, the money or securities so to be deposited or held may include money or securities held by the Trustee in the funds and accounts established under this Indenture and shall be: (a) lawful money of the United States of America in an amount equal to the principal amount of such Bonds and all unpaid interest thereon to maturity, except that, in the case of Bonds which are to be redeemed prior to maturity and in respect of which notice of such redemption shall have been given as provided in Article IV or provision satisfactory to the Trustee shall have been made for the giving of such notice, the amount to be deposited or held shall be the principal amount of such Bonds, premium, if any, and all unpaid interest thereon to the redemption date; or (b) non-callable Federal Securities, the principal of and interest on which when due will, in the written opinion of an Independent Accountant filed with the City, the Authority and the Trustee, provide money sufficient to pay the principal of and interest and premium (if any) on the Bonds to be paid or redeemed, as such principal, interest and premium become due, provided that in the case of Bonds which are to be redeemed prior to the maturity thereof, notice of such redemption shall have been given as provided in Article IV or provision satisfactory to the Trustee has been made for the giving of such notice; provided, in each case, that (i) the Trustee or escrow agent shall have been irrevocably instructed (by the terms of this Indenture or otherwise) to apply such money to the payment of such principal of and interest on such Bonds, and (ii) the Authority shall have delivered to the Trustee an opinion of Bond Counsel to the effect that such Bonds have been discharged in accordance with this Indenture (which opinion may rely upon and assume the accuracy of the Independent Accountant’s opinion referred to above). The Trustee shall be entitled to conclusively rely on such Written Request or opinion and shall be fully protected, in each case, in relying thereon. SECTION 10.04. Unclaimed Funds. Notwithstanding any provisions of this Indenture, any moneys held by the Trustee in trust for the payment of the principal of, or interest on, any Bonds and remaining unclaimed for 2 years after the principal of all of the Bonds has become due and payable (whether at maturity or upon call for redemption or by acceleration as provided in this Indenture), if such moneys were so held at such date, or 2 years after the date of deposit of such moneys if deposited after said date when all of the Bonds became due and payable, shall be repaid to the Authority free from the trusts created by this Indenture, and all liability of the Trustee with respect to such moneys shall thereupon cease; provided, however, that before the repayment of such moneys to the Authority as aforesaid, the Trustee shall (at the cost of the Authority) first mail to the Owners of Bonds which have not yet been paid, at the addresses shown on the Registration Books, a notice, in such form as may be deemed appropriate by the Trustee with respect to the Bonds so payable and not presented and with respect to the provisions relating to the repayment to the Authority of the moneys held for the payment thereof. Attachment 5 Page 326 of 858 -37- ARTICLE XI MISCELLANEOUS SECTION 11.01. Liability of Authority Limited to Revenues . Notwithstanding anything in this Indenture or in the Bonds contained, the Authority is not required to advance any moneys derived from any source other than the Revenues and other assets pledged under this Indenture for any of the purposes in this Indenture mentioned, whether for the payment of the principal of or interest on the Bonds or for any other purpose of this Indenture. Nevertheless, the Authority may, but is not required to, advance for any of the purposes hereof any funds of the Authority which may be made available to it for such purposes. SECTION 11.02. Limitation of Rights to Parties and Bond Owners. Nothing in this Indenture or in the Bonds expressed or implied is intended or shall be construed to give to any person other than the Authority, the Trustee, the City and the Owners of the Bonds, any legal or equitable right, remedy or claim under or in respect of this Indenture or any covenant, condition or provision therein or herein contained; and all such covenants, conditions and provisions are and shall be held to be for the sole and exclusive benefit of the Authority, the Trustee, the City and the Owners of the Bonds. SECTION 11.03. Funds and Accounts. Any fund or account required by this Indenture to be established and maintained by the Trustee may be established and maintained in the accounting records of the Trustee, either as a fund or an account, and may, for the purposes of such records, any audits thereof and any reports or statements with respect thereto, be treated either as a fund or as an account; but all such records with respect to all such funds and accounts shall at all times be maintained in accordance with industry standards to the extent practicable, and with due regard for the requirements of Section 6.05 and for the protection of the security of the Bonds and the rights of every Owner thereof. The Trustee may establish such funds and accounts as it deems necessary or appropriate to perform its obligations under this Indenture. SECTION 11.04. Waiver of Notice; Requirement of Mailed Notice. Whenever in this Indenture the giving of notice by mail or otherwise is required, the giving of such notice may be waived in writing by the person entitled to receive such notice and in any such case the giving or receipt of such notice shall not be a condition precedent to the validity of any action taken in reliance upon such waiver. Whenever in this Indenture any notice is required to be given by mail, such requirement may be satisfied by the deposit of such notice in the United States mail, postage prepaid, by first class mail. SECTION 11.05. Destruction of Bonds. Whenever in this Indenture provision is made for the cancellation by the Trustee, and the delivery to the Authority, of any Bonds, the Trustee may, in lieu of such cancellation and delivery, destroy such Bonds as may be allowed by law, and at the written request of the Authority the Trustee shall deliver a certificate of such destruction to the Authority. SECTION 11.06. Severability of Invalid Provisions. If any one or more of the provisions contained in this Indenture or in the Bonds shall for any reason be held to be invalid, illegal or unenforceable in any respect, then such provision or provisions shall be Attachment 5 Page 327 of 858 -38- deemed severable from the remaining provisions contained in this Indenture and such invalidity, illegality or unenforceability shall not affect any other provision of this Indenture, and this Indenture shall be construed as if such invalid or illegal or unenforceable provision had never been contained herein. The Authority hereby declares that it would have entered into this Indenture and each and every other Section, paragraph, sentence, clause or phrase hereof and authorized the issuance of the Bonds pursuant thereto irrespective of the fact that any one or more Sections, paragraphs, sentences, clauses or phrases of this Indenture may be held illegal, invalid or unenforceable. SECTION 11.07. Notices. All notices or communications to be given under this Indenture shall be given by first class mail or personal delivery to the party entitled thereto at its address set forth below, or at such address as the party may provide to the other party in writing from time to time. Notice shall be effective either (a) upon transmission by facsimile transmission or other form of telecommunication, confirmed by telephone, (b) 48 hours after deposit in the United States mail, postage prepaid, or (c) in the case of personal delivery to any person, upon actual receipt. The Authority, the City or the Trustee 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 City City of Ukiah or the Authority: Attention: Finance Director 300 Seminary Avenue Ukiah, CA 95482 If to the Trustee: The Bank of New York Mellon Trust Company, N.A. Attention: Corporate Trust Administration 333 S. Hope Street, Suite #2525 Los Angeles, California 90071 SECTION 11.08. Evidence of Rights of Bond Owners. Any request, consent or other instrument required or permitted by this Indenture to be signed and executed by Bond Owners may be in any number of concurrent instruments of substantially similar tenor and shall be signed or executed by such Bond Owners in person or by an agent or agents duly appointed in writing. Proof of the execution of any such request, consent or other instrument or of a writing appointing any such agent, or of the holding by any person of Bonds transferable by delivery, shall be sufficient for any purpose of this Indenture and shall be conclusive in favor of the Trustee and the Authority if made in the manner provided in this Section 11.08. The fact and date of the execution by any person of any such request, consent or other instrument or writing may be proved by the certificate of any notary public or other officer of any jurisdiction, authorized by the laws thereof to take acknowledgments of deeds, certifying that the person signing such request, consent or other instrument acknowledged to him the execution thereof, or by an affidavit of a witness of such execution duly sworn to before such notary public or other officer. The ownership of Bonds shall be proved by the Registration Books. Attachment 5 Page 328 of 858 -39- Any request, consent, or other instrument or writing of the Owner of any Bond shall bind every future Owner of the same Bond and the Owner of every Bond issued in exchange therefor or in lieu thereof, in respect of anything done or suffered to be done by the Trustee or the Authority in accordance therewith or reliance thereon. SECTION 11.09. Disqualified Bonds. In determining whether the Owners of the requisite aggregate principal amount of Bonds have concurred in any demand, request, direction, consent or waiver under this Indenture, Bonds which are known by the Trustee to be owned or held by or for the account of the Authority or the City, or by any other obligor on the Bonds, or by any person directly or indirectly controlling or controlled by, or under direct or indirect common control with, the Authority or the City or any other obligor on the Bonds, shall be disregarded and deemed not to be Outstanding for the purpose of any such determination. Bonds so owned which have been pledged in good faith may be regarded as Outstanding for the purposes of this Section if the pledgee shall establish to the satisfaction of the Trustee the pledgee’s right to vote such Bonds and that the pledgee is not a person directly or indirectly controlling or controlled by, or under direct or indirect common control with, the Authority or the City or any other obligor on the Bonds. In case of a dispute as to such right, the Trustee shall be entitled to rely upon the advice of counsel in any decision by Trustee and shall be fully protected in relying thereon. Upon request, the Authority shall specify to the Trustee those Bonds disqualified under this Section 11.09. SECTION 11.10. Money Held for Particular Bonds. The money held by the Trustee for the payment of the interest, premium, if any, or principal due on any date with respect to particular Bonds (or portions of Bonds in the case of Bonds redeemed in part only) shall, on and after such date and pending such payment, be set aside on its books and held in trust by it for the Owners of the Bonds entitled thereto, subject, however, to the provisions of Section 10.04 but without any liability for interest thereon. SECTION 11.11. Waiver of Personal Liability. No member, officer, agent or employee of the Authority shall be individually or personally liable for the payment of the principal of or interest or premium (if any) on the Bonds or be subject to any personal liability or accountability by reason of the issuance thereof; but nothing herein contained shall relieve any such member, officer, agent or employee from the performance of any official duty provided by law or by this Indenture. SECTION 11.12. Successor Is Deemed Included in All References to Predecessor. Whenever in this Indenture either the Authority, the City or the Trustee is named or referred to, such reference shall be deemed to include the successors or assigns thereof, and all the covenants and agreements in this Indenture contained by or on behalf of the Authority, the City or the Trustee shall bind and inure to the benefit of the respective successors and assigns thereof whether so expressed or not. SECTION 11.13. Execution in Several Counterparts. This Indenture may be executed in any number of counterparts and each of such counterparts shall for all purposes be deemed to be an original; and all such counterparts, or as many of them as the Authority and the Trustee shall preserve undestroyed, shall together constitute but one and the same instrument. Attachment 5 Page 329 of 858 -40- SECTION 11.14. Payment on Non-Business Day. In the event any payment is required to be made hereunder on a day which is not a Business Day, such payment shall be made on the next succeeding Business Day and with the same effect as if made on such preceding non-Business Day. SECTION 11.15. Governing Law. This Indenture shall be governed by and construed in accordance with the laws of the State of California. [Remainder of page intentionally left blank. Signatures on next page.] Attachment 5 Page 330 of 858 [Signature Page to Indenture of Trust dated as of February 1, 2022] IN WITNESS WHEREOF, the UKIAH PUBLIC FINANCING AUTHORITY has caused this Indenture to be signed in its name by its Treasurer and attested to by its Secretary, and THE BANK OF NEW YORK MELLON TRUST COMPANY, in token of its acceptance of the trusts created hereunder, has caused this Indenture to be signed in its corporate name by its officer thereunto duly authorized, all as of the day and year first above written. UKIAH PUBLIC FINANCING AUTHORITY By: Daniel Buffalo Treasurer THE BANK OF NEW YORK MELLON TRUST COMPANY, as Trustee By: Authorized Officer Attachment 5 Page 331 of 858 A-1 APPENDIX A DEFINITIONS “Additional Rental Payments” means the amounts of additional rental which are payable by the City under Section 4.5 of the Lease or which are otherwise identified as Additional Rental Payments under the Lease. “Assignment Agreement” means the Assignment Agreement dated as of February 1, 2022, between the Authority as assignor and the Trustee as assignee, as originally executed or as thereafter amended. “Authority” means the Ukiah Public Financing Authority, a joint powers authority duly organized and existing under the Joint Exercise of Powers Agreement, dated as of May 5, 2020, by and between the City and the Industrial Development Authority of the City of Ukiah, creating the Authority, together with any amendments thereof and supplements thereto, and under the laws of the State of California. “Authorized Representative” (a) with respect to the Authority, the Executive Director, Assistant Executive Director, Treasurer or any other person designated as an Authorized Official of the Authority by its Executive Director, Assistant Executive Director, Treasurer and notified to the City and the Trustee; and (b) with respect to the City, the City Manager, Assistant City Manager, Finance Director, or any other person designated as an Authorized Official the City Manager, Assistant City Manager, Finance Director and notified to the Authority and the Trustee. “Bond Counsel” means (a) Jones Hall, A Professional Law Corporation, or (b) any other attorney or firm of attorneys appointed by or acceptable to the Authority of nationally- recognized experience in the issuance of obligations the interest on which is excludable from gross income for federal income tax purposes under the Tax Code. “Bond Fund” means the fund by that name established and held by the Trustee under Section 5.01. “Bond Law” means the provisions of Article 4 of Chapter 5, Division 7, Title 1 of the Government Code of the State of California, commencing with Section 6584 of said Code, as in effect on the Closing Date or as thereafter amended in accordance with its terms. “Bond Year” means each twelve-month period extending from June 2 in one calendar year to April 1 of the succeeding calendar year, both dates inclusive; except that the first Bond Year commences on the Closing Date and extends to and including April 1, 2022. “Bonds” means the $_______________ aggregate principal amount of Ukiah Public Financing Authority Lease Revenue Bonds, Series 2022 (Capital Projects) authorized by and at any time Outstanding under the Bond Law and this Indenture. “Business Day” means a day (other than a Saturday or a Sunday) on which banks are not required or authorized to remain closed in the City in which the Office of the Trustee is located. Attachment 5 Page 332 of 858 A-2 “City” means the City of Ukiah, a municipal corporation organized and existing under the laws of the State of California. “Closing Date” means ___________, 2022, being the date of delivery of the Bonds to the Original Purchaser. “Costs of Issuance” means all items of expense directly or indirectly payable by or reimbursable to the City and the Authority relating to the authorization, issuance, sale and delivery of the Bonds, including but not limited to: Authority formation and administration costs, printing expenses; rating agency fees; filing and recording fees; initial fees, expenses and charges of the Trustee and their respective counsel, including the Trustee’s first annual administrative fee; fees, charges and disbursements of attorneys, financial advisors, accounting firms, consultants and other professionals; fees and charges for preparation, execution and safekeeping of the Bonds; title insurance and other insurance costs, and any other cost, charge or fee in connection with the original issuance of the Bonds. “Costs of Issuance Fund” means the fund by that name established and held by the Trustee under Section 3.03. “Depository” means (a) initially, DTC, and (b) any other Securities Depositories acting as Depository under Section 2.04. “Depository System Participant” means any participant in the Depository’s book- entry system. “DTC” means The Depository Trust Company, and its successors and assigns. “Event of Default” means any of the events specified in Section 7.01. “Excess Investment Earnings” means an amount required to be rebated to the United States of America under Section 148(f) of the Tax Code due to investment of gross proceeds of the Bonds at a yield in excess of the yield on the Bonds. “Federal Securities” means: (a) any direct general 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), for which the full faith and credit of the United States of America are pledged; (b) obligations of any agency, department or instrumentality of the United States of America, the timely payment of principal and interest on which are directly or indirectly secured or guaranteed by the full faith and credit of the United States of America. “Fiscal Year” means any twelve-month period extending from July 1 in one calendar year to June 30 of the succeeding calendar year, both dates inclusive, or any other twelve-month period selected and designated by the Authority as its official fiscal year period. “Indenture” means this Indenture of Trust, as originally executed or as it may from time to time be supplemented, modified or amended by any Supplemental Indenture under the provisions hereof. Attachment 5 Page 333 of 858 A-3 “Independent Accountant” means any certified public accountant or firm of certified public accountants appointed and paid by the Authority or the City, and who, or each of whom (a) is in fact independent and not under domination of the Authority or the City; (b) does not have any substantial interest, direct or indirect, in the Authority or the City; and (c) is not connected with the Authority or the City as an officer or employee of the Authority or the City but who may be regularly retained to make annual or other audits of the books of or reports to the Authority or the City. “Information Services” means in accordance with then-current guidelines of the Securities and Exchange Commission, the Electronic Municipal Market Access System (referred to as “EMMA”), a facility of the Municipal Securities Rulemaking Board (at http://emma.msrb.org), or such service or services as the Authority may designate in a certificate delivered to the Trustee. “Insurance and Condemnation Fund” means the fund by that name established and held by the Trustee under Section 5.07. “Interest Account” means the account by that name established and held by the Trustee in the Bond Fund under Section 5.02. “Interest Payment Date” means each October 1 and April 1, commencing April 1, 2022 so long as any Bonds remain unpaid. “Lease” means the Lease Agreement dated as of February 1, 2022, between the Authority as lessor and the City as lessee of the Leased Property, as originally executed and as it may from time to time be supplemented, modified or amended in accordance with the terms thereof and of this Indenture. “Lease Payment Date” means, with respect to any Interest Payment Date, the 5th Business Day immediately preceding such Interest Payment Date. “Lease Payments” means the amounts payable by the City under Section 4.3(a) of the Lease, including any prepayment thereof and including any amounts payable upon a delinquency in the payment thereof. “Leased Property” means the real property described in Appendix A to the Lease, together with all improvements and facilities at any time situated thereon. “Moody’s” means Moody’s Investors Service, its successors and assigns. “Net Proceeds” means amounts derived from any policy of property insurance or title insurance with respect to the Leased Property, or the proceeds of any taking of the Leased Property or any portion thereof in eminent domain proceedings (including sale under threat of such proceedings), to the extent remaining after payment therefrom of all expenses incurred in the collection and administration thereof. “Nominee” means (a) initially, Cede & Co. as nominee of DTC, and (b) any other nominee of the Depository designated under Section 2.04(a). “Office” means the corporate trust office of the Trustee in Los Angeles, California, or such other or additional offices as the Trustee may designate in writing to the Authority Attachment 5 Page 334 of 858 A-4 from time to time as the corporate trust office for purposes of the Indenture; except that with respect to presentation of Bonds for payment or for registration of transfer and exchange such term means the office or agency of the Trustee at which, at any particular time, its corporate trust agency and operations business is conducted. “Original Purchaser” means Hilltop Securities, Incorporated, as original purchaser of the Bonds upon their delivery by the Trustee on the Closing Date. “Outstanding”, when used as of any particular time with reference to Bonds, means all Bonds theretofore, or thereupon being, authenticated and delivered by the Trustee under this Indenture except: (a) Bonds theretofore canceled by the Trustee or surrendered to the Trustee for cancellation; (b) Bonds with respect to which all liability of the Authority shall have been discharged in accordance with Section 10.02, including Bonds (or portions thereof) described in Section 11.09; and (c) Bonds for the transfer or exchange of or in lieu of or in substitution for which other Bonds shall have been authenticated and delivered by the Trustee under this Indenture. “Owner”, whenever used herein with respect to a Bond, means the person in whose name the ownership of such Bond is registered on the Registration Books. “Permitted Encumbrances” means, as of any time: (a) liens for general ad valorem taxes and assessments, if any, not then delinquent, or which the City may permit to remain unpaid under Article V of the Lease; (b) the Site Lease, the Lease and the Assignment Agreement; (c) any right or claim of any mechanic, laborer, material man, supplier or vendor not filed or perfected in the manner prescribed by law; (d) if a title insurance policy covers the Leased Property, exceptions disclosed therein; and (e) easements, rights of way, mineral rights, drilling rights and other rights, reservations, covenants, conditions or restrictions which exist of record and which the City certifies in writing will not materially impair the use of the Leased Property for its intended purposes. “Permitted Investments” means any of the following: (a) any direct general 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), for which the full faith and credit of the United States of America are pledged. (b) obligations of any agency, department or instrumentality of the United States of America, the timely payment of principal and interest on which are directly or indirectly secured or guaranteed by the full faith and credit of the United States of America. (c) Any direct or indirect obligations of an agency or department of the United States of America whose obligations represent the full faith and credit of the United States of America, or which are rated A or better by S&P at the time of purchase. (d) Interest-bearing deposit accounts (including certificates of deposit) in federal or State chartered savings and loan associations or in federal or State of California banks (including the Trustee and its affiliates), Attachment 5 Page 335 of 858 A-5 provided that: (i) the unsecured obligations of such commercial bank or savings and loan association are rated A or better by S&P at the time of purchase; or (ii) such deposits are fully insured by the Federal Deposit Insurance Corporation. (e) Commercial paper rated “A-1+” or better by S&P at the time of purchase. (f) Federal funds or bankers acceptances with a maximum term of one year of any bank which an unsecured, uninsured and unguaranteed obligation rating of “A-1+” or better by S&P at the time of purchase. (g) Money market funds registered under the Federal Investment Company Act of 1940, whose shares are registered under the Federal Securities Act of 1933, and having a rating by S&P of at least AAAm-G, AAAm or AAm at the time of purchase, which funds may include funds for which the Trustee, its affiliates, parent or subsidiaries receives and retains a fee for services provided to the fund, whether as custodian, transfer agent, investment advisor or otherwise. (h) Obligations the interest on which is excludable from gross income pursuant to Section 103 of the Tax Code and which are either (a) rated A or better by S&P at the time of purchase, or (b) fully secured as to the payment of principal and interest by Permitted Investments described in clauses (a) or (b). (i) Obligations issued by any corporation organized and operating within the United States of America having assets in excess of $500,000,000, which obligations are rated A or better by S&P at the time of purchase. (j) Bonds or notes issued by any state or municipality which are rated A or better by S&P at the time of purchase. (k) Any investment agreement with, or guaranteed by, a financial institution the long-term unsecured obligations or the claims paying ability of which are rated A or better by S&P at the time of initial investment, by the terms of which all amounts invested thereunder are required to be withdrawn and paid to the Trustee in the event either of such ratings at any time falls below A. (l) The Local Agency Investment Fund of the State of California, created pursuant to Section 16429.1 of the California Government Code, to the extent the Trustee is authorized to register such investment in its name. (m) Ratings of Permitted Investments referred to herein shall be determined at the time of purchase of such Permitted Investments and without regard to rating subcategories. The Trustee shall have no responsibility to monitor the ratings of Permitted Investments after the initial purchase of such Permitted Attachment 5 Page 336 of 858 A-6 Investments, or the responsibility to validate Permitted Investments the ratings of Permitted Investments prior to the initial purchase. “Principal Account” means the account by that name established and held by the Trustee in the Bond Fund under Section 5.02. “Project” means energy efficiency improvements to various City facilities, and incidental expenses related to the foregoing, as such project may be modified by the City Council from time to time. “Project Costs” means, with respect to the Project, all costs of the acquisition, construction and installation thereof which are paid from moneys on deposit in the Project Fund, including but not limited to: (a) all costs required to be paid to any person under the terms of any agreement for the purchase of the Project or otherwise relating to the acquisition, construction and installation of the Project; (b) obligations incurred for labor and materials in connection with the acquisition, construction and installation of the Project; (c) the cost of performance or other bonds and any and all types of insurance that may be necessary or appropriate to have in effect in connection with the acquisition, construction and installation of the Project; (d) preliminary costs of the Project, including but not limited to design, environmental, engineering and architectural services, costs for testing, surveys, estimates, plans and specifications and preliminary investigations therefor, development fees and costs for supervising construction, as well as for the performance of all other duties required by or consequent to the proper acquisition, construction and installation of the Project; (e) costs of equipping and furnishing the Project, and costs of taking occupancy of the Project including costs incurred in connection with the relocation of City functions and personnel into the Project; (f) any sums required to reimburse the City for advances made for any of the above items or for any other costs incurred and for work done which are properly chargeable to the acquisition, construction and installation of the Project; (g) all financing costs incurred in connection with the acquisition, construction and installation of the Project; and (h) the Lease Payments coming due during the period of construction of the Project. “Project Fund” means the fund by that name established and held by the City under Section 3.04. Attachment 5 Page 337 of 858 A-7 “Qualified Reserve Fund Credit Instrument” means an irrevocable standby or direct-pay letter of credit or surety bond issued by a commercial bank or insurance company and deposited with the Trustee pursuant to Section 5.05, provided that all of the following requirements are met: (a) the long-term credit rating of such bank or insurance company is rated in the “AA” category or higher by S&P or Moody’s at the time of issuance; (b) such letter of credit or surety bond has a term of at least twelve (12) months; (c) such letter of credit or surety bond has a stated amount at least equal to the portion of the Reserve Requirement with respect to which funds are proposed to be released pursuant to Section 5.05; and (d) the Trustee is authorized pursuant to the terms of such letter of credit or surety bond to draw thereunder an amount equal to any deficiencies which may exist from time to time in the Bond Fund for the purpose of making payments required pursuant to Section 5.05. “Record Date” means, with respect to any Interest Payment Date, the 15th calendar day of the month preceding such Interest Payment Date, whether or not such day is a Business Day. “Redemption Fund” means the fund by that name established and held by the Trustee under Section 5.01. “Registration Books” means the records maintained by the Trustee under Section 2.05 for the registration and transfer of ownership of the Bonds. “Reserve Fund” means the fund by that name established and held by the Trustee pursuant to Section 5.05. “Reserve Requirement” means, as of any date of calculation thereof by the Authority, an amount equal to the lesser of (a) 10% of the original principal amount of such series of Bonds, (b) the maximum amount of debt service coming due in the current or any future Bond Year with respect to such series of Bonds, or (c) 125% of average annual debt service for such series of Bonds. The initial Reserve Requirement is $___________ and the Reserve Requirement may be recalculated by the Authority on any date. “Revenues” means all amounts received by the Authority or the Trustee under or with respect to the Lease including, without limiting the generality of the foregoing, all of the Lease Payments (including both timely and delinquent payments, any late charges, and whether paid from any source), but excluding (i) any amounts described in the provisions of the Lease relating to permitted amendments that provide for additional rental to be pledged or assigned for the payment of bonds or obligations issued to finance or refinance projects for which the City is authorized to expend its funds, and (ii) any “Additional Rental Payments” (consisting of certain administrative costs due to the Authority and the Trustee under the Lease), and all interest, profits or other income derived from the investment of amounts in any fund or account established under this Indenture. “Securities Depositories” means DTC; and, in accordance with then current guidelines of the Securities and Exchange Commission, such other securities depositories as the Authority designates in written notice filed with the Trustee. Attachment 5 Page 338 of 858 A-8 “Site Lease” means the Site Lease dated as of February 1, 2022, between the City as lessor and the Authority as lessee, as amended from time to time in accordance with its terms. “Site Lease Payment” means the amount of $___________, which is payable by the Authority to the City on the Closing Date under Section 3 of the Site Lease. “S&P” means S&P Global Ratings, a division of Standard & Poor’s Financial Services LLC, and its successors or assigns, except that if such entity shall be dissolved or liquidated or shall no longer perform the functions of a securities rating agency, then the term “S&P” shall be deemed to refer to any other nationally recognized securities rating agency selected by the City. “Supplemental Indenture” means any indenture hereafter duly authorized and entered into between the Authority and the Trustee, supplementing, modifying or amending this Indenture; but only if and to the extent that such Supplemental Indenture is specifically authorized hereunder. “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 said Code. “Term” means, with reference to the Lease, the time during which the Lease is in effect, as provided in Section 4.2 thereof. “Trustee” means The Bank of New York Mellon Trust Company, a national banking association organized and existing under the laws of United States of America, or its successor or successors, as Trustee hereunder as provided in Article VIII. “Written Certificate,” “Written Request” and “Written Requisition” of the Authority or the City mean, respectively, a written certificate, request or requisition signed in the name of the Authority or the City by its Authorized Representative. Any such instrument and supporting opinions or representations, if any, may, but need not, be combined in a single instrument with any other instrument, opinion or representation, and the two or more so combined shall be read and construed as a single instrument. Attachment 5 Page 339 of 858 B-1 APPENDIX B BOND FORM No. R-____ ***$________*** UNITED STATES OF AMERICA STATE OF CALIFORNIA UKIAH PUBLIC FINANCING AUTHORITY LEASE REVENUE BONDS, SERIES 2022 (Capital Projects) INTEREST RATE: MATURITY DATE: ORIGINAL ISSUE DATE: CUSIP: ______% April 1, ____ __________, 2022 _______ REGISTERED OWNER: CEDE & CO. PRINCIPAL AMOUNT: ***_______________ DOLLARS*** The UKIAH PUBLIC FINANCING AUTHORITY, a joint exercise of powers authority organized and existing under the laws of the State of California (the “Authority”), for value received, hereby promises to pay to the Registered Owner specified above or registered assigns (the “Registered Owner”), on the Maturity Date specified above (subject to any right of prior redemption hereinafter provided for), the Principal Amount specified above, in lawful money of the United States of America, and to pay interest thereon in like lawful money from the Interest Payment Date (as hereinafter defined) next preceding the date of authentication of this Bond unless (i) this Bond is authenticated on or before an Interest Payment Date and after the close of business on the 15th day of the month preceding such Interest Payment Date, in which event it shall bear interest from such Interest Payment Date, or (ii) this Bond is authenticated on or before March 15, 2022, in which event it shall bear interest from the Original Issue Date specified above; provided, however, that if at the time of authentication of this Bond, interest is in default on this Bond, this Bond shall bear interest from the Interest Payment Date to which interest has previously been paid or made available for payment on this Bond, at the Interest Rate per annum specified above, payable semiannually on April 1 and October 1 in each year, commencing April 1, 2022 (the “Interest Payment Dates”), calculated on the basis of a 360-day year composed of twelve 30-day months. Principal hereof and premium, if any, upon early redemption hereof are payable upon presentation and surrender hereof at the corporate trust office of The Bank of New York Mellon Trust Company, in San Francisco, California (the “Trust Office”), as trustee Attachment 5 Page 340 of 858 B-2 (the “Trustee”). Interest hereon is payable by check of the Trustee mailed on the Interest Payment Date to the Registered Owner hereof at the Registered Owner’s address as it appears on the registration books of the Trustee as of the close of business on the fifteenth day of the month preceding each Interest Payment Date (a “Record Date”), or, upon written request filed with the Trustee as of such Record Date by a registered owner of at least $1,000,000 in aggregate principal amount of Bonds, by wire transfer in immediately available funds to an account in the United States designated by such registered owner in such written request. This Bond is not a debt of the City of Ukiah (the “City”), the County of Mendocino, the State of California, or any of its political subdivisions, and neither the City, said County, said State, nor any of its political subdivisions, is liable hereon nor in any event shall this Bond be payable out of any funds or properties of the Authority other than the Revenues. This Bond is one of a duly authorized issue of bonds of the Authority designated as the “Ukiah Public Financing Authority Lease Revenue Bonds, Series 2022 (Capital Projects) (the “Bonds”), in an aggregate principal amount of $_______________, all of like tenor and date (except for such variation, if any, as may be required to designate varying numbers, maturities, interest rates or redemption provisions) and all issued under the provisions of Article 4 of Chapter 5, Division 7, Title 1 of the Government Code of the State of California, commencing with Section 6584 of said Code (the “Bond Law”), and under an Indenture of Trust dated as of February 1, 2022, between the Authority and the Trustee (the “Indenture”) and a resolution of the Authority adopted on __________, 2021, authorizing the issuance of the Bonds. Reference is hereby made to the Indenture (copies of which are on file at the office of the Authority) and all supplements thereto for a description of the terms on which the Bonds are issued, the provisions with regard to the nature and extent of the Revenues, and the rights thereunder of the owners of the Bonds and the rights, duties and immunities of the Trustee and the rights and obligations of the Authority thereunder, to all of the provisions of which the Registered Owner of this Bond, by acceptance hereof, assents and agrees. The Bonds have been issued by the Authority to finance the acquisition and construction of capital improvements of the City. This Bond and the interest and premium, if any, hereon are special obligations of the Authority, payable from the Revenues, and secured by a charge and lien on the Revenues as defined in the Indenture, consisting principally of lease payments made by the City under a Lease Agreement dated as of February 1, 2022, between the Authority as lessor and the City as lessee (the “Lease”). As and to the extent set forth in the Indenture, all of the Revenues are exclusively and irrevocably pledged in accordance with the terms hereof and the provisions of the Indenture, to the payment of the principal of and interest and premium (if any) on the Bonds. The rights and obligations of the Authority and the owners of the Bonds may be modified or amended at any time in the manner, to the extent and upon the terms provided in the Indenture, but no such modification or amendment shall extend the fixed maturity of any Bonds, or reduce the amount of principal thereof or premium (if any) thereon, or extend the time of payment, or change the method of computing the rate of interest thereon, or extend the time of payment of interest thereon, without the consent of the owner of each Bond so affected. Attachment 5 Page 341 of 858 B-3 The Bonds maturing on or after April 1, _____, are subject to redemption in whole, or in part at the at the election of the Authority among maturities on such basis as shall be designated by the Authority and by lot within a maturity, at the option of the Authority, on any date on or after April 1, ____, from any available source of funds, at a redemption price equal to the principal amount thereof to be redeemed together with accrued interest thereon to the redemption date, without premium. The Bonds are subject to mandatory redemption in part by lot, at a redemption price equal to 100% of the principal amount thereof to be redeemed, without premium, in the aggregate respective principal amounts and on April 1 in the respective years as set forth in the following table; provided, however, that if some but not all of such Bonds have been redeemed pursuant to an optional redemption or special mandatory redemption from insurance or condemnation proceeds, the total amount of all future sinking fund payments shall be reduced by the aggregate principal amount of such Bonds so redeemed, to be allocated among such sinking fund payments on a pro rata basis in integral multiples of $5,000 (as set forth in a schedule provided by the Authority to the Trustee). Bonds Maturing April 1, _________ Sinking Fund Redemption Date (April 1) Principal Amount To Be Redeemed (maturity) The Bonds are subject to mandatory redemption prior to maturity in whole or in part among maturities as determined by the Authority on any date, at a redemption price equal to 100% of the principal amount thereof to be redeemed (plus accrued but unpaid interest to the redemption date), without premium, from Net Proceeds of certain damage and condemnation awards deposited in the Insurance and Condemnation Fund, Net Proceeds of title insurance, if any, and from any other funds available for such purpose under this Indenture. As provided in the Indenture, notice of redemption will be mailed by the Trustee by first class mail not less than 20 or more than 60 days prior to the redemption date to the respective owners of any Bonds designated for redemption at their addresses appearing on the registration books of the Trustee, but neither failure to receive such notice nor any defect in the notice so mailed shall affect the sufficiency of the proceedings for redemption or the cessation of accrual of interest thereon from and after the date fixed for redemption. Notice of any optional redemption of the Bonds may be rescinded under the circumstances set forth in the Indenture, upon notice to the owners of such Bonds. If this Bond is called for redemption and payment is duly provided therefor as specified in the Indenture, interest shall cease to accrue hereon from and after the date fixed for redemption. This Bond is transferable by the Registered Owner hereof, in person or by his attorney duly authorized in writing, at the Trust Office, but only in the manner, subject to the limitations and upon payment of the charges provided in the Indenture, and upon Attachment 5 Page 342 of 858 B-4 surrender and cancellation of this Bond. Upon registration of such transfer, a new Bond or Bonds, of authorized denomination or denominations, for the same aggregate principal amount and of the same maturity will be issued to the transferee in exchange herefor. This Bond may be exchanged at the Trust Office for Bonds of the same tenor, aggregate principal amount, interest rate and maturity, of other authorized denominations. The Authority and the Trustee may treat the Registered Owner hereof as the absolute owner hereof for all purposes, and the Authority and the Trustee shall not be affected by any notice to the contrary. Unless this Bond is presented by an authorized representative of The Depository Trust Company to the Authority or the Trustee for registration of transfer, exchange or payment, and any Bond issued is registered in the name of Cede & Co. or such other name as requested by an authorized representative of The Depository Trust Company and any payment is made to Cede & Co., ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL since the registered owner hereof, Cede & Co., has an interest herein. It is hereby certified by the Authority that all of the things, conditions and acts required to exist, to have happened or to have been performed precedent to and in the issuance of this Bond do exist, have happened or have been performed in due and regular time, form and manner as required by the Bond Law and the laws of the State of California and that the amount of this Bond, together with all other indebtedness of the Authority, does not exceed any limit prescribed by the Bond Law or any laws of the State of California, and is not in excess of the amount of Bonds permitted to be issued under the Indenture. This Bond shall not be entitled to any benefit under the Indenture or become valid or obligatory for any purpose until the certificate of authentication hereon endorsed shall have been manually signed by the Trustee. IN WITNESS WHEREOF, the Ukiah Public Financing Authority has caused this Bond to be executed in its name and on its behalf with the facsimile signature of its Treasurer and attested to by the facsimile signature of its Secretary, all as of the Original Issue Date specified above. UKIAH PUBLIC FINANCING AUTHORITY By: Authorized Officer Attest: Secretary Attachment 5 Page 343 of 858 B-5 CERTIFICATE OF AUTHENTICATION This is one of the Bonds described in the within-mentioned Indenture. Dated: THE BANK OF NEW YORK MELLON TRUST COMPANY, as Trustee By: Authorized Signatory Attachment 5 Page 344 of 858 B-6 ASSIGNMENT For value received the undersigned hereby sells, assigns and transfers unto __________________________________ whose address and social security or other tax identifying number is ____________________, the within-mentioned Bond and hereby irrevocably constitute(s) and appoint(s) _________________________________ ________________________________________ attorney, to transfer the same on the registration books of the Trustee with full power of substitution in the premises. Dated: Signature Guaranteed: Note: Signature(s) must be guaranteed by an eligible guarantor institution. Note: The signature(s) on this Assignment must correspond with the name(s) as written on the face of the within Bond in every particular without alteration or enlargement or any change whatsoever. Attachment 5 Page 345 of 858 Jones Hall Draft 1.11.22 ASSIGNMENT AGREEMENT This ASSIGNMENT AGREEMENT (this “Agreement”), dated for convenience as of February 1, 2022, is between the UKIAH PUBLIC FINANCING AUTHORITY, a joint exercise of powers authority organized and existing under the laws of the State of California (the “Authority”), and THE BANK OF NEW YORK MELLON TRUST COMPANY, N.A., a national banking association organized and existing under the laws of the United States of America, as trustee (the “Trustee”). BACKGROUND: 1.The City is proceeding to reconstruct its corporation yard and construct improvements to various City streets (collectively, the “Project”). 2.In order to provide funds to finance a portion of the costs of the Project, the City has agreed to lease the real property more particularly described in Appendix A attached hereto and by this reference incorporated herein, consisting of streets in the City (the “Leased Property”) to the Authority under a Site Lease dated as of February 1, 2022 which has been executed concurrently herewith (the “Site Lease”), under which the Authority agrees to make an initial rental payment (the “Site Lease Payment”) which is sufficient to provide funds for such purposes. 3.The Authority has authorized the issuance of its Ukiah Public Financing Authority Lease Revenue Bonds, Series 2022 (Capital Projects) in the aggregate principal amount of $_______________ (the “Bonds”) under an Indenture of Trust dated as of February 1, 2022 (the “Indenture”), between the Authority and The Bank of New York Mellon Trust Company, N.A., as trustee (the “Trustee”), and under the provisions of Article 4 of Chapter 5, Division 7, Title 1 of the Government Code of the State of California, commencing with Section 6584 of said Code (the “Bond Law”), for the purpose of providing the funds to enable the Authority to pay the Site Lease Payment to the City in accordance with the Site Lease. 4.In order to provide revenues which are sufficient to enable the Authority to pay debt service on the Bonds, the Authority has agreed to lease the Leased Property back to the City under the Lease Agreement dated as of February 1, 2022 (the “Lease Agreement”), which has been executed concurrently herewith, under which the City agrees to pay semiannual Lease Payments as the rental for the Leased Property thereunder. 5.The Authority has requested the Trustee to enter into this Agreement for the purpose of assigning certain of its rights under the Lease to the Trustee for the benefit of the Bond owners. Attachment 6 Page 346 of 858 -2- AGREEMENT: In consideration of the material covenants contained in this Agreement, the parties hereto hereby formally covenant, agree and bind themselves as follows: SECTION 1. Defined Terms. All capitalized terms not otherwise defined herein have the respective meanings given those terms in the Indenture. SECTION 2. Assignment. The Authority hereby assigns to the Trustee, for the benefit of the Owners of all Bonds which are issued and Outstanding under the Indenture, all of the Authority’s rights under the Lease (excepting only the Authority’s rights under Sections 4.5, 5.10, 7.3 and 8.4 of the Lease), including but not limited to: (a) the right to receive and collect all of the Lease Payments from the City under the Lease, (b) the right to receive and collect any proceeds of any insurance maintained thereunder with respect to the Leased Property, or any eminent domain award (or proceeds of sale under threat of eminent domain) paid with respect to the Leased Property, and (c) the right to exercise such rights and remedies conferred on the Authority under the Lease as may be necessary or convenient (i) to enforce payment of the Lease Payments and any amounts required to be deposited in the Insurance and Condemnation Fund established under Section 5.07 of the Indenture, or (ii) otherwise to protect the interests of the Bond Owners in the event of a default by the City under the Lease. The Trustee shall administer all of the rights assigned to it by the Authority under this Agreement in accordance with the provisions of the Indenture, for the benefit of the Owners of Bonds. The assignment made under this Section 2 is absolute and irrevocable, and without recourse to the Authority. SECTION 3. Acceptance. The Trustee hereby accepts the assignments made herein for the purpose of securing the payments due under the Lease and Indenture to, and the rights under the Lease and Indenture of, the Owners of the Bonds, all subject to the provisions of the Indenture. The recitals contained herein are those of the Authority and not of the Trustee, and the Trustee assumes no responsibility for the correctness thereof. SECTION 4. Conditions. This Agreement confers no rights and imposes no duties upon the Trustee beyond those expressly provided in the Indenture. The assignment hereunder to the Trustee is solely in its capacity as Trustee under the Indenture. SECTION 5. Execution in Counterparts. This Agreement may be executed in any number of counterparts, each of which is an original and all together constitute one and the same agreement. Separate counterparts of this Agreement may be separately executed by the Trustee and the Authority, both with the same force and effect as though the same counterpart had been executed by the Trustee and the Authority. Attachment 6 Page 347 of 858 -3- SECTION 6. Binding Effect. This Agreement inures to the benefit of and binds the Authority and the Trustee, and their respective successors and assigns, subject, however, to the limitations contained herein. SECTION 7. Governing Law. This Agreement is governed by the laws of the State of California. Attachment 6 Page 348 of 858 [Signature Page to Assignment Agreement dated as of February 1, 2022] IN WITNESS WHEREOF, the parties have executed this Agreement by their duly authorized officers as of the day and year first written above. UKIAH PUBLIC FINANCING AUTHORITY By: Daniel Buffalo Treasurer THE BANK OF NEW YORK MELLON TRUST COMPANY, as Trustee By: Authorized Officer Attachment 6 Page 349 of 858 A-1 APPENDIX A DESCRIPTION OF THE LEASED PROPERTY The Leased Property consists of that certain real property, together with all fixtures, equipment or other improvements located upon the real property, except as to the library as excluded below, situated in the City of Ukiah, County of Mendocino, State of California, described as follows: [[All City Streets]] Attachment 6 Page 350 of 858 Jones Hall Draft 1.12.22 PRELIMINARY OFFICIAL STATEMENT DATED FEBRUARY ___, 2022 NEW ISSUE - FULL BOOK-ENTRY RATING: S&P: “___” See “RATING” In the opinion of Jones Hall, A Professional Law Corporation, San Francisco, California, Bond Counsel, subject, however to certain qualifications described herein, under existing law, the interest on the Bonds is excluded from gross income for federal income tax purposes and such interest is not an item of tax preference for purposes of the federal alternative minimum tax. In the further opinion of Bond Counsel, such interest is exempt from California personal income taxes. See “TAX MATTERS.” $________* UKIAH PUBLIC FINANCING AUTHORITY Lease Revenue Bonds, Series 2022 (Capital Projects) Dated: Date of Delivery Due: April 1, as shown on inside cover Authority for Issuance. The bonds captioned above (the “Bonds”) are being issued by the Ukiah Public Financing Authority (the “Authority”) an Indenture of Trust dated as of February 1, 2022 (the “Indenture”) by and between the Authority and The Bank of New York Mellon Trust Company, N.A., as trustee (the “Trustee”) and pursuant a resolution adopted by the Board of Directors of the Authority. See “THE BONDS – Authority for Issuance.” Use of Proceeds. The Bonds are being issued to renovate the Corporation Yard, construct improvements to various City streets and pay issuance costs. See “FINANCING PLAN.” Security for the Bonds. Under the Indenture, the Bonds are payable from and secured by a first pledge of and lien on (“Revenues”) (as defined in this Official Statement) received by the Authority under the Lease Agreement dated as of February 1, 2022, by and between the Authority, as lessor, and the City, as lessee (the “Lease”), consisting primarily of semi-annual lease payments (the “Lease Payments”) made by the City under the Lease with respect to the lease of certain real property, as further described in this Official Statement. The Bonds are also secured by certain funds on deposit under the Indenture. See “SECURITY FOR THE BONDS.” Bond Terms; Book-Entry Only. The Bonds will bear interest at the rates shown on the inside cover page, payable semiannually on April 1 and October 1 of each year, commencing on October 1, 2022, and will be issued in fully registered form without coupons in the denomination of $5,000 or any integral multiple of $5,000. The Bonds will be issued in book-entry only form, initially registered in the name of Cede & Co., as nominee of The Depository Trust Company (“DTC”). Purchasers of the Bonds will not receive certificates representing their interests in the Bonds. Payments of the principal of, premium, if any, and interest on the Bonds will be made to DTC, which is obligated in turn to remit such principal, premium, if any, and interest to its DTC Participants for subsequent disbursement to the beneficial owners of the Bonds. See “THE BONDS – General Provisions.” Reserve Fund. The Authority will establish a debt service reserve fund for the Bonds from proceeds of the Bonds, as described herein. See “SECURITY FOR THE BONDS.” Redemption. The Bonds are subject to redemption prior to maturity. See “THE BONDS – Redemption.” NEITHER THE BONDS, NOR THE OBLIGATION OF THE AUTHORITY TO PAY PRINCIPAL OF OR INTEREST THEREON, NOR THE OBLIGATION OF THE CITY TO MAKE THE LEASE PAYMENTS, CONSTITUTE A DEBT OR A LIABILITY OF THE AUTHORITY, THE CITY, THE STATE OF CALIFORNIA OR ANY OF ITS POLITICAL SUBDIVISIONS WITHIN THE MEANING OF ANY CONSTITUTIONAL LIMITATION ON INDEBTEDNESS, OR A PLEDGE OF THE FULL FAITH AND CREDIT OF THE CITY. THE BONDS ARE SECURED SOLELY BY THE PLEDGE OF REVENUES AND CERTAIN FUNDS HELD UNDER THE INDENTURE. THE BONDS ARE NOT SECURED BY A PLEDGE OF THE TAXING POWER OF THE CITY. MATURITY SCHEDULE (see inside cover) THIS COVER PAGE CONTAINS CERTAIN INFORMATION FOR GENERAL REFERENCE ONLY. IT IS NOT A SUMMARY OF THIS ISSUE OF BONDS. INVESTORS MUST READ THE ENTIRE OFFICIAL STATEMENT TO OBTAIN INFORMATION ESSENTIAL TO THE MAKING OF AN INFORMED INVESTMENT DECISION WITH RESPECT TO THE PURCHASE OF THE BONDS. The Bonds are offered when, as and if issued and received by the Underwriter and subject to the approval as to their legality by Jones Hall, A Professional Law Corporation, San Francisco, California, Bond Counsel. Certain legal matters will also be passed upon for the Authority and the City by Jones Hall, A Professional Law Corporation, as Disclosure Counsel. Certain legal matters will be passed upon for the City by the City Attorney. Certain legal matters will be passed upon for the Underwriter by its counsel, _____________, California. It is anticipated that the Bonds will be delivered in book-entry form through the facilities of DTC on or about ________, 2022*. [Piper logo] The date of this Official Statement is: ______, 22. *Preliminary; subject to change. Th i s P r e l i m i n a r y O f f i c i a l S t a t e m e n t a n d t h e i n f o r m a t i o n c o n t a i n e d h e r e i n a r e s u b j e c t t o c o m p l e t i o n o r a m e n d m e n t . Th e s e s e c u r i t i e s m a y n o t b e s o l d n o r m a y o f f e r s t o b u y b e a c c e p t e d p r i o r t o t h e ti m e t h e O f f i c i a l S t a t e m e n t i s de l i v e r e d i n f i n a l f o r m . U n d e r n o c i r c u m s t a n c e s w i l l t h i s P r e l i m i n a r y O f f i c i a l S t a t e m e n t c o n s t i t u t e a n o f f e r t o s e l l o r a s o li c i t a t i o n o f a n o f f e r t o b u y n o r w i l l t h e r e b e a n y sa l e o f t h e s e s e c u r i t i e s i n a n y j u r i s d i c t i o n i n w h i c h s u c h o f f e r s o l i c i t a t i o n o r s a l e w o u l d b e u n l a w f u l . Attachment 7 Page 351 of 858 MATURITY SCHEDULE $_________ Serial Bonds (Base CUSIP†: ______) Maturity Principal Interest (April 1) Amount Rate Yield Price CUSIP† 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042 2043 2044 2045 2046 2047 2048 2049 2050 2051 $___________ ____% Term Bonds due April 1, 20___; Price: _____%; Yield: ______; CUSIP†: _______ * Preliminary, subject to change. † CUSIP® is a registered trademark of the American Bankers Association. CUSIP Global Services (CGS) is managed on behalf of the American Bankers Association by S&P Global Market Intelligence. Copyright© 2022 CUSIP Global Services. All rights reserved. CUSIP® data herein is provided by CUSIP Global Services. This data is not intended to create a database and does not serve in any way as a substitute for the CGS database. CUSIP® numbers are provided for convenience of reference only. None of the City, the Authority nor the Underwriter takes any responsibility for the accuracy of such numbers. Attachment 7 Page 352 of 858 UKIAH PUBLIC FINANCING AUTHORITY Ukiah, California _______________________ AUTHORITY BOARD / CITY COUNCIL Douglas Crane, Chair/Mayor Juan Orozco, Vice Chair/Vice Mayor Steve Scalmanini, Authority Member/Councilmember Jim Brown, Authority Member/Councilmember Maureen Mulheren, Authority Member/Councilmember CITY / AUTHORITY STAFF Sage Sangiacomo, City Manager/Executive Director Allen Carter, City Treasurer Daniel Buffalo, Finance Director/Authority Treasurer Mel Grandi, P.E., Electric Utility Director Tim Eriksen, Public Works Director/City Engineer Kristine Lawler, City Clerk/Secretary David Rapport, Esq., City Attorney/Authority Counsel PROFESSIONAL SERVICES Bond Counsel and Disclosure Counsel Jones Hall, A Professional Law Corporation San Francisco, California Municipal Advisor NHA Advisors, LLC San Rafael, California Trustee The Bank of New York Mellon Trust Company, N.A. Los Angeles, California Attachment 7 Page 353 of 858 GENERAL INFORMATION ABOUT THIS OFFICIAL STATEMENT No dealer, broker, salesperson or other person has been authorized to give any information or to make any representations with respect to the Bonds other than as contained in this Official Statement, and if given or made, such other information or representation must not be relied upon as having been authorized. This Official Statement does not constitute an offer to sell or the solicitation of an offer to buy in any state in which such offer or solicitation is not authorized or in which the person making such offer or solicitation is not qualified to do so or to any person to whom it is unlawful to make such offer or solicitation. This Official Statement speaks only as of its date, and the information and expressions of opinion contained in this Official Statement are subject to change without notice. Neither the delivery of this Official Statement nor any sale of the Bonds will, under any circumstances, create any implication that there has been no change in the affairs of the City or any other parties described in this Official Statement, or in the condition of the security for the Bonds since the date of this Official Statement. This Official Statement is submitted in connection with the sale of the Bonds referred to in this Official Statement and may not be reproduced or used, in whole or in part, for any other purpose. This Official Statement is not a contract with the purchasers of the Bonds. Prospective investors should not construe the contents of this Official Statement as legal, tax or investment advice. The information contained in this Official Statement has been obtained from sources that are believed to be reliable, but this information is not guaranteed as to accuracy or completeness. The Underwriter has submitted the following statement for inclusion in this Official Statement: The Underwriter has reviewed the information in this Official Statement in accordance with, and as a part of, its responsibilities to investors under the federal securities laws as applied to the facts and circumstances of this transaction, but the Underwriter does not guarantee the accuracy or completeness of such information. All references to and summaries of the Indenture or other documents contained in this Official Statement are subject to the provisions of those documents and do not purport to be complete statements of those documents. The Bonds have not been registered under the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended, in reliance upon exemptions for the issuance and sale of municipal securities provided under Section 3(a)(2) of the Securities Act of 1933 and Section 3(a)(12) of the Securities Exchange Act of 1934. Certain statements included or incorporated by reference in this Official Statement constitute forward-looking statements. Such statements are generally identifiable by the terminology used such as “plan,” “expect,” “estimate,” “project,” “budget” or other similar words. The achievement of certain results or other expectations contained in such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause actual results, performance or achievements described to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. No assurance is given that actual results will meet the forecasts of the City in any way, regardless of the level of optimism communicated in the information. The City is not obligated to issue any updates or revisions to the forward-looking statements if or when its expectations, or events, conditions or circumstances on which such statements are based occur. The references to internet websites in this Official Statement are shown for reference and convenience only; unless explicitly stated to the contrary, the information contained within the websites and any links contained within those websites are not incorporated herein by reference and do not constitute part of this Official Statement. Attachment 7 Page 354 of 858 i TABLE OF CONTENTS INTRODUCTION ............................................... 1 FINANCING PLAN ............................................ 3 Estimated Sources and Uses ........................ 4 THE LEASED PROPERTY ............................... 5 Leased Property ............................................ 5 Substitution and Release ............................... 5 DEBT SERVICE SCHEDULE ........................... 7 THE BONDS ..................................................... 8 Authority for Issuance .................................... 8 General Provisions ........................................ 8 Transfer, Registration and Exchange ............ 9 Redemption ................................................. 10 Book-Entry Only System ............................. 11 SECURITY FOR THE BONDS ........................ 12 Revenues; Pledge of Revenues .................. 12 Assignment to Trustee ................................. 12 Allocation of Funds by Trustee .................... 13 Lease Payments .......................................... 13 Limited Obligation ........................................ 15 No Additional Bonds .................................... 16 Source of Lease Payments; Covenant to Budget and Appropriate .......................... 16 Abatement ................................................... 16 Remedies on Default ................................... 17 Property Insurance ...................................... 18 THE AUTHORITY ........................................... 19 THE CITY ........................................................ 19 General ........................................................ 19 City Government .......................................... 20 Labor Relations ........................................... 21 CITY FINANCIAL INFORMATION .................. 21 Accounting and Financial Reporting ............ 21 COVID-19 Pandemic ................................... 23 General Fund, the Budget Process and Information .............................................. 23 Sales and Use Taxes .................................. 27 Other Sources of Revenues ........................ 30 Transient Occupancy Tax ............................ 30 Property Taxes ............................................ 31 Financial Statements ................................... 37 General Fund Historical Financial Data ....... 37 Relevant Fiscal Policies ............................... 39 Employee Retirement System; CalPERS .... 41 General Fund Long-Term Indebtedness ...... 47 OVERLAPPING DEBT OF THE CITY ............. 49 Direct and Overlapping Bonded Debt .......... 49 CONSTITUTIONAL AND STATUTORY LIMITATIONS ON TAXES AND APPROPRIATIONS ..................................... 50 Article XIIIA of the State Constitution ........... 50 Article XIIIB of the State Constitution ........... 50 Articles XIIIC and XIIID of the State Constitution .............................................. 51 Proposition 1A; Proposition 22 .................... 52 Unitary Property ........................................... 53 Possible Future Initiatives ............................ 53 BOND OWNERS’ RISKS ................................. 53 No Pledge of Taxes ..................................... 53 Additional Obligations of the City ................. 55 Default ......................................................... 56 Abatement ................................................... 56 Sales Taxes ................................................. 56 Property Taxes ............................................ 57 Natural Calamities ....................................... 58 COVID-19 Pandemic ................................... 59 Cyber Security ............................................. 59 Limitations on Remedies Available to Bond Owners .................................................... 59 Secondary Market for Bonds ....................... 60 TAX MATTERS ................................................ 60 CERTAIN LEGAL MATTERS .......................... 62 LITIGATION ..................................................... 62 RATING ........................................................... 63 CONTINUING DISCLOSURE .......................... 63 MUNICIPAL ADVISOR .................................... 63 UNDERWRITING ............................................ 64 PROFESSIONAL SERVICES .......................... 64 EXECUTION ............................................... 65 APPENDIX A: AUDITED FINANCIAL STATEMENTS OF THE CITY FOR FISCAL YEAR ENDED JUNE 30, 2021 APPENDIX B: GENERAL INFORMATION ABOUT THE CITY OF UKIAH AND THE COUNTY OF MENDOCINO APPENDIX C: SUMMARY OF PRINCIPAL LEGAL DOCUMENTS APPENDIX D: FORM OF CONTINUING DISCLOSURE CERTIFICATE APPENDIX E: FORM OF OPINION OF BOND COUNSEL APPENDIX F: DTC AND THE BOOK-ENTRY ONLY SYSTEM Attachment 7 Page 355 of 858 [Insert Regional Location Map] Attachment 7 Page 356 of 858 -1- __________________________________ OFFICIAL STATEMENT __________________________________ $________* UKIAH PUBLIC FINANCING AUTHORITY Lease Revenue Bonds, Series 2022 (Capital Projects) INTRODUCTION This introduction is not a summary of this Official Statement. It is only a brief description of and guide to, and is qualified by, more complete and detailed information contained in the entire Official Statement, including the cover page and appendices hereto, and the documents summarized or described herein. A full review should be made of the entire Official Statement. The offering of the Bonds to potential investors is made only by means of the entire Official Statement. Capitalized terms used but not defined in this Official Statement have the meanings set forth in the Indenture (as defined below). See “APPENDIX C – SUMMARY OF PRINCIPAL LEGAL DOCUMENTS.” Authority for Issuance. The Ukiah Public Financing Authority (the “Authority”) is issuing the bonds captioned above (the “Bonds”) under the Marks-Roos Local Bond Pooling Act of 1985, constituting Article 4 (commencing with Section 6584) of Chapter 5, Division 7, Title 1 of the California Government Code (the “Bond Law”), resolutions adopted by the Board of Directors (the “Board”) of the Authority on [January 19], 2022 (the “Authority Resolution”), and by the City Council (the “City Council”) of the City of Ukiah (the “City”) on [January 19], 2022 (the “City Resolution”), and an Indenture of Trust (the “Indenture”) dated as of February 1, 2022, by and between the Authority and The Bank of New York Mellon Trust Company, N.A., as trustee (the “Trustee”). Purpose of the Bonds. The Bonds are being issued to (i) renovate the Corporation Yard and, (ii) construct improvements to various City streets (collectively, the “Project”), (ii) provide for a deposit to a debt reserve fund for the Bonds, and (iii) pay costs of issuance of the Bonds. See “FINANCING PLAN.” The Authority and the City. The Authority is a joint powers authority established pursuant to that certain Joint Exercise of Powers Agreement dated May 5, 2020 The Authority is governed by a five-member Board of Directors (the “Board”), which consists of the members of the City Council of the City. The Authority was created for the purpose of assisting the financing or refinancing of certain public capital facilities within the City. Under the Bond Law, the Authority has the power to lease real property in furtherance of the acquisition of public improvements necessary or convenient for the operation of the City, or to purchase bonds issued by any local * Preliminary; subject to change. Attachment 7 Page 357 of 858 -2- agency at public or negotiated sale and may sell such bonds to public or private purchasers at public or negotiated sale. See “THE AUTHORITY” herein. The City encompasses approximately five square miles and is located in Mendocino County (the “County”), approximately 100 miles north of San Francisco in the northern coastal region of the State on U.S. Highway 101. The area is centrally located between the San Francisco Bay area, Eureka and Sacramento. The City was incorporated in 1876 and is a general law city operating under a City Council/City Manager form of government. The City has an estimated population of approximately 16,061 people. For additional background, and certain demographic and economic information regarding the City and the County, see APPENDIX B. Bond Terms; Book-Entry Only. The Bonds will bear interest at the rates shown on the inside cover page, payable semiannually on April 1 and October 1 of each year, commencing on ________ 1, 2022. The Bonds will be issued in fully registered form, registered in the name of The Depository Trust Company (“DTC”), or its nominee, which will act as securities depository for the Bonds. Purchasers of the Bonds will not receive certificates representing the Bonds that are purchased. See “THE BONDS – Book-Entry Only System” and “APPENDIX F – DTC AND THE BOOK-ENTRY ONLY SYSTEM.” Security for the Bonds. The City and the Authority will enter into a Site Lease dated as of February 1, 2022 (the “Site Lease”), under which the City will lease certain real property to the Authority, consisting of all of the City’s streets (the “Leased Property”), to the Authority as further described herein under the caption “THE LEASED PROPERTY.” Proceeds of the Bonds are used by the Authority to fund the payment obligation under the Site Lease. In order to secure the payments of principal of and interest on the Bonds, the Authority proposes to lease the Leased Property back to the City under a Lease Agreement (the “Lease Agreement”), under which the City is obligated to pay semiannual lease payments (the “Lease Payments”) as rental for the Leased Property, and the Authority will assign substantially all of its rights under the Lease Agreement to The Bank of New York Mellon Trust Company, N.A. as trustee for the Bonds. The Bonds are payable from and secured by a first pledge of and lien on (“Revenues”) (defined herein) received by the Authority under the Lease Agreement, consisting primarily of the Lease Payments. To provide an additional source of funds for payment of the Bonds, the Authority will establish a debt service reserve fund for the Bonds from proceeds of the Bonds, as described herein. See “SECURITY FOR THE BONDS” below. Redemption. The Bonds are subject to redemption prior to their stated maturity dates. See “THE BONDS – Redemption.” Abatement. The Lease Payments are subject to complete or partial abatement in the event and to the extent that there is substantial interference with the City’s use and possession of the Leased Property or any portion thereof. If the Lease Payments are abated under the Lease, the Bond Owners may receive less than the full amount of principal of and interest on the Bonds. See “SECURITY FOR THE BONDS – Abatement” and “BOND OWNERS’ RISKS.” Additional Obligations. Under the Indenture, the Authority covenants that no additional bonds, notes or other indebtedness shall be issued or incurred by the Authority which are payable out of the Revenues in whole or in part. The City is permitted to enter into other obligations which constitute additional charges against its revenues without the consent of Owners of the Bonds. Attachment 7 Page 358 of 858 -3- Risks of Investment. Debt service on the Bonds is payable only from Lease Payments and other amounts payable by the City to the Authority under the Lease. The Lease Payments are payable from revenues available in the City’s general fund, which revenues may be materially adversely affected by numerous factors outside the City’s control, including the ongoing COVID- 19 pandemic and the governmental responses to the pandemic. For a discussion of some of the risks associated with the purchase of the Bonds, see “BOND OWNERS’ RISKS.” NEITHER THE BONDS, THE OBLIGATION OF THE AUTHORITY TO PAY PRINCIPAL OF OR INTEREST THEREON, NOR THE OBLIGATION OF THE CITY TO MAKE THE LEASE PAYMENTS, CONSTITUTE A DEBT OR A LIABILITY OF THE AUTHORITY, THE CITY, THE STATE OR ANY OF ITS POLITICAL SUBDIVISIONS WITHIN THE MEANING OF ANY CONSTITUTIONAL LIMITATION ON INDEBTEDNESS, OR A PLEDGE OF THE FULL FAITH AND CREDIT OF THE CITY. THE BONDS ARE SECURED SOLELY BY THE PLEDGE OF REVENUES AND CERTAIN FUNDS HELD UNDER THE INDENTURE. THE BONDS ARE NOT SECURED BY A PLEDGE OF THE TAXING POWER OF THE CITY. FINANCING PLAN The Bonds are being issued to rebuild the City’s corporation yard and, (ii) construct improvements to various City streets. The Corporation Yard is located at 1320 Airport Road and is the base of operations for the City Fleet and Plant Maintenance Facility, Street Maintenance Crew, Water and Wastewater Maintenance Crew, and Electric Utility Maintenance Crew. The expenses for the Corporation Yard are divided respectively based on the amount of square feet that each department occupies. The estimated cost is $15 million. The streets projects primarily consist of improvements to certain streets, rights-of-way reconstruction, and utility projects, as follows: Dora Street: reconstruct Mill to Grove streets and overlay Upper Luce Avenue to Mill Street; Gobbi Street: reconstruct from Highway 101 to Dora Street; Main Street: reconstruct from Gobbi to Norton streets; Perkins Street: Main Street to Hwy. 101; Dora and State streets: overlay Beacon Lane to Washington Avenue; Clara Avenue: reconstruct/overlay from State Street to North Orchard Avenue; and Low Gap Road: reconstruct/overlay from State to Bush streets. The estimated cost is $30 million. Attachment 7 Page 359 of 858 -4- Estimated Sources and Uses The estimated sources and uses of funds relating to the Bonds are as follows: Sources: Principal Amount of Bonds $ TOTAL SOURCES $ Uses: Deposit to Project Fund Deposit to Reserve Fund(1) Costs of Issuance(2) TOTAL USES $ (1) Represents the initial Reserve Requirement for the Bonds. (2) Represents funds to be used to pay Costs of Issuance, which include rating agency fees, bond counsel, disclosure counsel, Trustee fees, Underwriter’s discount and other costs of issuing the Bonds. Attachment 7 Page 360 of 858 -5- THE LEASED PROPERTY Leased Property The Leased Property consist of all of the City streets [and ______(?)], which total approximately 355 City streets constituting an estimated 113 lane miles. Simultaneously with the delivery of the Bonds, the Authority will acquire a leasehold interest in the Leased Property from the City. The Authority will sublease the Leased Property to the City pursuant to the Lease. Under the Lease, the City has agreed to maintain the Leased Property in good working condition. The Leased Property is also subject to a lease entered into by the City (the “2020 Lease”) in connections with the Authority’s Lease Revenue Bonds, Series 2020A and Taxable Lease Revenue Bonds, Series 2020B, outstanding in the combined principal amount of $52,250,000 (the “2020 Bonds”). The City estimates that the Leased Property has a value of at least the aggregate principal amount of the Bonds and the remaining principal balance of the 2020 Bonds. The City and the Authority, based on records they maintain, estimate the current annual fair rental value of the Leased Property to be not less than the amount of the annual Lease Payments and the annual payments due under the 2020 Lease. Bondholders do not have a mortgage on any portion of the Leased Property. The Trustee does not have the right to resell, relet or take possession of the Leased Property in the Event of Default. See “BOND OWNERS’ RISKS – Limited Recourse on Default; No Right to Repossess; No Acceleration of Lease Payments” and “SECURITY FOR THE BONDS – Remedies on Default” herein. Substitution and Release Substitution of Lease Property. Under the Lease, the City has the option at any time and from time to time, to substitute other real property (the “Substitute Property”) for the Leased Property or any portion thereof (the “Former Property”), upon satisfaction of all of the conditions set forth in the Lease, which include (among others) the following: • The City must file with the Authority and the Trustee, and cause to be recorded in the office of the Mendocino County Recorder sufficient memorialization of, an amendment of the Site Lease, Lease and Assignment Agreement that adds the legal description of the Substitute Property and deletes therefrom the legal description of the Former Property. • The City must certify in writing to the Authority and the Trustee that the Substitute Property serves the municipal purposes of the City and constitutes property which the City is permitted to lease under the laws of the State of California, and has been determined to be important to the proper, efficient and economic operation of the City and to serve a proper governmental function of the City. • The City must file with the Authority and the Trustee a written certificate of the City or other written evidence stating that the estimated fair rental value of the Leased Property following the substitution will be at least equal to the aggregate principal amount of the Bonds then outstanding, and that the useful life of the Substitute Property at least extends to the stated termination date of the Lease. Attachment 7 Page 361 of 858 -6- Upon the satisfaction of all the conditions precedent contained in the Lease, the term of the Lease will 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 City 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 provision of the Lease. Release of Leased Property. Under the Lease, the City has the option at any time and from time to time to release any portion of the Leased Property from the Lease (the “Released Property”) provided that the City has satisfied all of the requirements under the Lease that are conditions precedent to such removal, which include (among others) the following: • The City must file with the Authority and the Trustee, and cause to be recorded in the office of the Mendocino County Recorder sufficient memorialization of, an amendment of the Lease, the Site Lease and the Assignment Agreement that removes the Released Property from the Site Lease, the Lease and the Assignment Agreement. • The City must certify in writing to the Authority and the Trustee that the value of the property that remains subject to the Lease following such release is at least equal to the then outstanding principal amount of the Bonds, and the fair rental value of the property that remains subject to the Lease following such release is at least equal to the Lease Payments thereafter coming due and payable thereunder. Upon the satisfaction of all the conditions precedent set forth in the Lease, the term of the Lease will end as to the Released Property. The City is not entitled to any reduction, diminution, extension or other modification of the Lease Payments whatsoever as a result of such release. Attachment 7 Page 362 of 858 -7- DEBT SERVICE SCHEDULE The table below shows annual debt service payments on the Bonds. Year Ending April 1 Principal Interest Total Debt Service Total: Attachment 7 Page 363 of 858 -8- THE BONDS This section provides summaries of the Bonds and certain provisions of the Indenture. See APPENDIX C for a more complete summary of the Indenture. Capitalized terms used but not defined in this section have the meanings given in APPENDIX C. Authority for Issuance The Bonds are being issued under the Bond Law, the Indenture, the Authority Resolution adopted by the Board of the Authority on [January 19], 2022, and the City Resolution adopted by the City Council on [January 19], 2022. General Provisions Bond Terms. The Bonds will be dated their date of delivery and issued in fully registered form without coupons in denominations of $5,000 or any integral multiple of $5,000. The Bonds will mature in the amounts and on the dates, and bear interest at the annual rates, set forth on the inside cover page of this Official Statement. Payments of Principal and Interest. Interest on the Bonds will be payable on April 1 and October 1 in each year, beginning October 1, 2022 (each an “Interest Payment Date”). Interest on the Bonds is payable from the Interest Payment Date next preceding the date of its authentication unless: a Bond is authenticated on or before an Interest Payment Date and after the close of business on the preceding Record Date, in which event it will bear interest from such Interest Payment Date, a Bond is authenticated on or before 15 days prior to the first Interest Payment Date, in which event interest thereon will be payable from the Closing Date, or interest on any Bond is in default as of the date of authentication thereof, in which event interest thereon will be payable from the date to which interest has been paid in full, payable on each Interest Payment Date. Interest is computed on the basis of a 360-day year composed of 12 months of 30 days each and payable on each Interest Payment Date to the persons in whose names the ownership of the Bonds is registered on the Registration Books at the close of business on the immediately preceding Record Date, except as provided below. Interest on any Bond which is not punctually paid or duly provided for on any Interest Payment Date is payable to the person in whose name the ownership of such Bond is registered on the Registration Books at the close of business on a special record date for the payment of such defaulted interest to be fixed by the Trustee, notice of which is given to such Owner by first-class mail not less than 10 days prior to such special record date. The Trustee will pay interest on the Bonds by check of the Trustee mailed by first class mail, postage prepaid, on each Interest Payment Date to the Owners of the Bonds at their respective addresses shown on the Registration Books as of the close of business on the preceding Record Date. At the written request of the Owner of Bonds in an aggregate principal amount of at least $1,000,000, which written request is on file with the Trustee as of any Record Date, the Trustee will pay interest on such Bonds on each succeeding Interest Payment Date by wire transfer in immediately available funds to such account of a financial institution within the United States of America as specified in such written request, which written request will remain in effect until rescinded in writing by the Owner. Attachment 7 Page 364 of 858 -9- While the Bonds are subject to the book-entry system, the principal, interest and any redemption premium with respect to the Bonds will be paid by the Trustee to DTC for subsequent disbursement to beneficial owners of the Bonds. See “– Book-Entry Only System” below. Record Date. Under the Indenture, “Record Date” means, with respect to any Interest Payment Date, the 15th calendar day of the month preceding such Interest Payment Date, whether or not such day is a Business Day. Transfer, Registration and Exchange The following provisions regarding the exchange and transfer of the Bonds apply only during any period in which the Bonds are not subject to DTC’s book-entry system. While the Bonds are subject to DTC’s book-entry system, their exchange and transfer will be affected through DTC and the Participants and will be subject to the procedures, rules and requirements established by DTC. See “APPENDIX F – DTC AND THE BOOK-ENTRY ONLY SYSTEM.” Bond Register. The Trustee will keep or cause to be kept, at the Office of the Trustee, sufficient records for the registration and transfer of ownership of the Bonds, which will upon reasonable notice as agreed to by the Trustee, be open to inspection during regular business hours by the Authority; and, upon presentation for such purpose, the Trustee will, under such reasonable regulations as it may prescribe, register or transfer or cause to be registered or transferred, on such records, the ownership of the Bonds as provided in the Indenture. Transfer and Exchange. Any Bond may, in accordance with its terms, be transferred, upon the Registration Books, by the person in whose name it is registered, in person or by a duly authorized attorney of such person, upon surrender of such Bond to the Trustee at its Office for cancellation, accompanied by delivery of a written instrument of transfer in a form acceptable to the Trustee, duly executed. The Trustee will require the Owner requesting such transfer to pay any tax or other governmental charge required to be paid with respect to such transfer. Whenever any Bond is or Bonds are surrendered for transfer, the Authority will execute and the Trustee will authenticate and deliver to the transferee a new Bond or Bonds of like series, interest rate, maturity and aggregate principal amount. The Authority will pay the cost of printing Bonds and any services rendered or expenses incurred by the Trustee in connection with any transfer of Bonds. The Bonds may be exchanged at the Office of the Trustee for a like aggregate principal amount of Bonds of other authorized denominations and of the same series, interest rate and maturity. The Trustee will require the Owner requesting such exchange to pay any tax or other governmental charge required to be paid with respect to such exchange. The Authority will pay the cost of printing Bonds and any services rendered or expenses incurred by the Trustee in connection with any exchange of Bonds. The Trustee may refuse to transfer or exchange, under the provisions of the Indenture described above, any Bonds selected by the Trustee for redemption under the Indenture, or any Bonds during the period established by the Trustee for the selection of Bonds for redemption. Attachment 7 Page 365 of 858 -10- Redemption* Optional Redemption. The Bonds maturing on or before April 1, ____, are not subject to redemption prior to their respective stated maturities. The Bonds maturing on or after April 1, _____, are subject to redemption in whole, or in part at the at the election of the Authority among maturities on such basis as designated by the Authority and by lot within a maturity, at the option of the Authority, on any date on or after April 1, _____, from any available source of funds, at a redemption price equal to 100% of the principal amount thereof to be redeemed together with accrued interest thereon to the redemption date, without premium. Mandatory Sinking Fund Redemption. The Bonds maturing April 1, _____ (the “Term Bonds”) are subject to mandatory redemption in part by lot, at a redemption price equal to 100% of the principal amount thereof to be redeemed, without premium, in the aggregate respective principal amounts and on April 1 in the respective years as set forth in the following table; provided, however, that if some but not all of the Term Bonds have been optionally redeemed, the total amount of all future sinking fund payments shall be reduced by the aggregate principal amount of the Term Bonds so redeemed, to be allocated among such sinking fund payments in integral multiples of $5,000 as determined by the Authority (as set forth in a schedule provided by the Authority to the Trustee). Term Bonds Maturing April 1, ______ Sinking Fund Redemption Date (April 1) Principal Amount To Be Redeemed Extraordinary Mandatory Redemption. The Bonds are subject to mandatory redemption prior to maturity in whole or in part, among maturities as determined by the Authority, on any date, at a redemption price equal to 100% of the principal amount thereof to be redeemed (plus accrued but unpaid interest to the redemption date), without premium, from Net Proceeds received under from amounts deposited in the Insurance and Condemnation Fund under the Indenture, and any other funds available under the Indenture for purposes of that fund and/or Surplus Bond Proceeds. Selection of Bonds for Redemption. Whenever provision is made in the Indenture for the redemption of less than all of the Bonds of a single maturity, the Trustee will select the Bonds of that maturity to be redeemed by lot in any manner which the Trustee in its sole discretion deems appropriate. For purposes of such selection, the Trustee will treat each Bond as consisting of separate $5,000 portions and each such portion will be subject to redemption as if such portion were a separate Bond. Notice of Redemption. The Trustee will give notice of redemption of the Bonds by first class mail, postage prepaid, not less than 20 nor more than 60 days before any redemption date, to the respective Owners of any Bonds designated for redemption at their addresses appearing * Preliminary; subject to change. Attachment 7 Page 366 of 858 -11- on the Registration Books and to one or more Securities Depositories and to the Municipal Securities Rulemaking Board. Neither the failure to receive any notice nor any defect therein will affect the sufficiency of the proceedings for such redemption or the cessation of accrual of interest from and after the redemption date. Notice of redemption of Bonds will be given by the Trustee, at the expense of the Authority, for and on behalf of the Authority. However, while the Bonds are subject to DTC’s book-entry system, the Trustee will be required to give notice of redemption only to DTC as provided in the letter of representations executed by the Authority and received and accepted by DTC. DTC and the Participants will have sole responsibility for providing any such notice of redemption to the beneficial owners of the Bonds to be redeemed. Any failure of DTC to notify any Participant, or any failure of Participants to notify the Beneficial Owner of any Bonds to be redeemed, of a notice of redemption or its content or effect will not affect the validity of the notice of redemption, or alter the effect of redemption set forth in the Indenture. Rescission of Redemption Notice. The Authority has the right to rescind any notice of the redemption of Bonds under the Indenture by written notice to the Trustee on or prior to the dated fixed for redemption. Any notice of redemption will be cancelled and annulled if for any reason funds will not be or are not available on the date fixed for redemption for the payment in full of the Bonds then called for redemption, and such cancellation will not constitute an Event of Default. The Authority and the Trustee have no liability to the Bond Owners or any other party related to or arising from such rescission of redemption. The Trustee will mail notice of such rescission of redemption in the same manner as the original notice of redemption was sent under the Indenture. Effect of Redemption. When notice of redemption has been duly given as set forth in the Indenture, and moneys for payment of the redemption price of, together with interest accrued to the date fixed for redemption on, including any applicable premium, the Bonds (or portions thereof) so called for redemption being held by the Trustee, on the redemption date designated in such notice, the Bonds (or portions thereof) so called for redemption will become due and payable, interest on the Bonds so called for redemption will cease to accrue, those Bonds (or portions thereof) will cease to be entitled to any benefit or security under the Indenture, and the Owners of those Bonds will have no rights in respect thereof except to receive payment of the redemption price thereof. Book-Entry Only System The Bonds will be issued as fully registered bonds in book-entry only form, registered in the name of Cede & Co. as nominee of DTC, and will be available to ultimate purchasers in the denomination of $5,000 or any integral multiple of $5,000, under the book-entry system maintained by DTC. While the Bonds are subject to the book-entry system, the principal, interest and any redemption premium with respect to a Bond will be paid by the Trustee to DTC, which in turn is obligated to remit such payment to its DTC Participants for subsequent disbursement to Beneficial Owners of the Bonds. Purchasers of the Bonds will not receive certificates representing their interests therein, which will be held at DTC. See “APPENDIX F – DTC AND THE BOOK-ENTRY ONLY SYSTEM” for further information regarding DTC and the book-entry system. Attachment 7 Page 367 of 858 -12- SECURITY FOR THE BONDS The principal of and interest on the Bonds are not a debt of the Authority or the City, nor a legal or equitable pledge, charge, lien or encumbrance, upon any of their respective property, or upon any of their income, receipts, or revenues except the Revenues and other amounts pledged under the Indenture. This section provides summaries of the security for the Bonds and certain provisions of the Indenture, the Lease and the Site Lease. See “APPENDIX C – Summary of Principal Legal Documents” for a more complete summary of the Indenture, the Lease, the Site Lease and the Assignment Agreement. Capitalized terms used but not defined in this section have the meanings given in APPENDIX C. Revenues; Pledge of Revenues Pledge of Revenues and Other Amounts. Under the Indenture, subject only to the provisions of the Indenture permitting the application thereof for the purposes and on the terms and conditions set forth therein, all of the Revenues and all amounts (including proceeds of the sale of the Bonds) held in any fund or account established under the Indenture are pledged to secure the payment of the principal of and interest and premium (if any) on the Bonds in accordance with their terms and the provisions of the Indenture. This pledge constitutes a lien on and security interest in the Revenues and such amounts and will attach, be perfected and be valid and binding from and after the Closing Date, without the need for any physical delivery thereof or further act. “Revenues” are defined in the Indenture as all amounts received by the Authority or the Trustee under or with respect to the Lease, including, without limiting the generality of the foregoing, all of the Lease Payments (including both timely and delinquent payments, any late charges, and whether paid from any source), but excluding (i) any amounts the City is obligated to pay under the Lease or under another lease as additional amounts of rental for the use and occupancy of the Leased Property if such additional amounts of rental are pledged or assigned for the payment of any bonds, notes, leases or obligations other than the Bonds, (ii) any Additional Rental Payments (described below); and all interest, profits or other income derived from the investment of amounts in any fund or account established under the Indenture. (a) Assignment to Trustee Under the Assignment Agreement, the Authority will transfer to the Trustee all of the rights of the Authority in the Lease (other than the rights of the Authority under the provisions of the Lease regarding Additional Rental Payments, repayment of advances, indemnification, and the payment of attorneys’ fees). The Trustee is entitled to collect and receive all of the Revenues, and any Revenues collected or received by the Authority will be deemed to be held, and to have been collected or received, by the Authority as the agent of the Trustee and will immediately be paid by the Authority to the Trustee. The Trustee is also entitled to and will, subject to the provisions of the Indenture regarding duties of the Trustee, take all steps, actions and proceedings which the Trustee determines to be reasonably necessary in its judgment to enforce, either jointly with the Authority or separately, all of the rights of the Authority and all of the obligations of the City under the Lease. Attachment 7 Page 368 of 858 -13- Allocation of Funds by Trustee Deposit of Revenues into Bond Fund. All Revenues shall be promptly deposited by the Trustee upon receipt thereof in a special fund designated as the “Bond Fund” which the Trustee shall establish, maintain and hold in trust; except that all moneys received by the Trustee and required under the Indenture or under the Lease to be deposited in the Redemption Fund or the Insurance and Condemnation Fund shall be promptly deposited in such funds. All Revenues deposited with the Trustee shall be held, disbursed, allocated and applied by the Trustee only as provided in the Indenture. Any surplus remaining in the Bond Fund, after payment in full of (i) the principal of and interest on the Bonds or provision therefore under the Indenture, and (ii) any applicable fees and expenses to the Trustee, shall be withdrawn by the Trustee and remitted to the City. Transfers from the Bond Fund. On or before each Interest Payment Date, the Trustee will transfer from the Bond Fund and deposit into the following respective accounts (each of which the Trustee will establish and maintain within the Bond Fund), the following amounts in the following order of priority: Deposit to Interest Account. The Trustee will deposit in the Interest Account an amount required to cause the aggregate amount on deposit in the Interest Account to be at least equal to the amount of interest becoming due and payable on such Interest Payment Date on all Bonds then Outstanding. Deposit to Principal Account. The Trustee will deposit in the Principal Account an amount required to cause the aggregate amount on deposit in the Principal Account to equal the principal amount of the Bonds coming due and payable on such Interest Payment Date. Application of Accounts within Bond Fund. Application of Interest Account. All amounts in the Interest Account will be used and withdrawn by the Trustee solely for the purpose of paying interest on the Bonds as it comes due and payable (including accrued interest on any Bonds purchased or redeemed prior to maturity). Application of Principal Account. All amounts in the Principal Account will be used and withdrawn by the Trustee solely to pay the principal amount of the Bonds at their respective maturity dates. Application of Redemption Fund. The Trustee shall establish and maintain the Redemption Fund, into which the Trustee shall deposit a portion of the Revenues received, in accordance with a Written Request of the Authority, amounts in which shall be used and withdrawn by the Trustee solely for the purpose of paying the principal and premium (if any) of any Bonds to be optionally redeemed under the Indenture. Reserve Fund. Upon delivery of the Bonds, the Trustee will establish a special fund designated as the “Reserve Fund” which the Trustee shall maintain and hold in trust; and deposit there in an amount of the proceeds equal to the “Reserve Requirement,” which means, as of any date of calculation thereof by the Authority, an amount equal to the lesser of (a) 10% of the original principal amount of such series of Bonds, (b) the maximum amount of debt service coming due in the current or any future Bond Year with respect to such series of Bonds, or (c) 125% of Attachment 7 Page 369 of 858 -14- average annual debt service for such series of Bonds. The initial Reserve Requirement may be recalculated by the Authority on any date; all amounts on deposit in the Reserve Fund in excess of the Reserve Requirement as calculated from time to time, and all amounts derived from the investment of amounts in the Reserve Fund which are not required to be retained therein to maintain the Reserve Requirement, will be available for transfer by the Trustee to the Bond Fund. The Authority has the right to either meet the Reserve Requirement at the time of issuance of a series of Bonds or at any time thereafter to cause the Fiscal Agent to release cash from the Reserve Fund, in whole or in part, by tendering to the Fiscal Agent: (1) a Qualified Reserve Fund Credit Instrument, as defined in the Indenture. If five Business Days prior to any Interest Payment Date the moneys available in the Bond Fund do not equal the amount of the Lease Payment then coming due and payable, the Trustee shall apply the moneys available in the Reserve Fund to make such payments on behalf of the Authority by transferring the amount necessary for this purpose to the Bond Fund. Upon receipt of any delinquent Lease Payment with respect to which moneys have been advanced from the Reserve Fund, such Lease Payment shall be deposited in the Reserve Fund to the extent of such advance, as needed to provide the Reserve Requirement. If on any Interest Payment Date, the moneys on deposit in the Reserve Fund and the Bond Fund are sufficient to pay or prepay all Outstanding Bonds, including all principal, interest and prepayment premiums (if any) thereon, the Trustee shall, upon the written request of the Authority, transfer all amounts then on deposit in the Reserve Fund to the Bond Fund to be applied for such purpose to the payment of the Lease Payments on behalf of the Authority. Lease Payments Requirement to Make Lease Payments. Under the Lease, subject to the provisions of the Lease concerning rental abatement (see – “Abatement,” below) and prepayment of Lease Payments, the City agrees to pay to the Authority, its successors and assigns, the Lease Payments in the respective amounts specified in the Lease, to be due and payable in immediately available funds on the Interest Payment Dates immediately following each of the respective Lease Payment Dates specified in the Lease, and to be deposited by the City with the Trustee on each of the Lease Payment Dates specified in the Lease (defined as the 5th Business Day immediately preceding each Interest Payment Date). Any amount held in the Bond Fund, the Interest Account and the Principal Account on any Lease Payment Date (other than amounts resulting from the prepayment of the Lease Payments in part but not in whole under the Lease, and amounts required for payment of past due principal or interest on any Bonds not presented for payment) will be credited towards the Lease Payment then required to be paid hereunder. The City is not required to deposit any Lease Payment with the Trustee on any Lease Payment Date if the amounts then held in the Bond Fund, the Interest Account and the Principal Account are at least equal to the Lease Payment then required to be deposited with the Trustee. The Lease Payments payable in any Rental Period are for the use of the Leased Property during that Rental Period. Rate on Overdue Lease Payments. If the City fails to make any of the payments of Lease Payments required in the Lease, the payment in default will continue as an obligation of Attachment 7 Page 370 of 858 -15- the City until the amount in default has been fully paid, and the City agrees to pay the same with interest thereon, from the date of default to the date of payment at the highest rate of interest on any Outstanding Bond. Fair Rental Value. The aggregate amount of the Lease Payments and Additional Rental Payments coming due and payable during each Rental Period constitute the total rental for the Leased Property for such Rental Period, and are payable by the City 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 Leased Property during each Rental Period. The Authority and the City have agreed and determined that the total Lease Payments represent the fair rental value of the Leased Property. In making that determination, consideration has been given to the estimated value of the Leased Property, other obligations of the City and the Authority under the Lease, the uses and purposes which may be served by the Leased Property and the benefits therefrom which will accrue to the City and the general public. Additional Rental Payments. In addition to the Lease Payments, the City shall pay when due the following amounts of Additional Rental Payments in consideration of the lease of the Leased Property by the City from the Authority: (a) All fees and expenses incurred by the Authority in connection with or by reason of its leasehold estate in the Leased Property, when due; (b) All reasonable compensation to the Trustee for all services rendered under the Indenture and for all reasonable expenses, charges, costs, liabilities, legal fees and other disbursements incurred in and about the performance of its powers and duties under the Indenture; (c) The reasonable fees and expenses of such accountants, consultants, attorneys and other experts as may be engaged by the Authority or the Trustee to prepare audits, financial statements, reports, opinions or provide such other services required under the Lease or the Indenture; (d) Amounts coming due and payable as Excess Investment Earnings in accordance with the Lease; and (e) The reasonable out-of-pocket expenses of the Authority in connection with the execution and delivery of the Lease or the Indenture, or in connection with the issuance of the Bonds, including but not limited to any and all expenses incurred in connection with the authorization, sale and delivery of the Bonds, or incurred by the Authority in connection with any litigation which may at any time be instituted involving the Lease, the Bonds, the Indenture or any of the other documents contemplated thereby, or otherwise incurred in connection with the administration of the Lease. Limited Obligation THE OBLIGATION OF THE CITY TO MAKE THE LEASE PAYMENTS DOES NOT CONSTITUTE A DEBT OF THE CITY, THE AUTHORITY OR THE STATE OR OF ANY POLITICAL SUBDIVISION THEREOF WITHIN THE MEANING OF ANY CONSTITUTIONAL OR STATUTORY DEBT LIMIT OR RESTRICTION, AND DOES NOT CONSTITUTE AN OBLIGATION FOR WHICH THE CITY IS OBLIGATED TO LEVY OR PLEDGE ANY FORM OF Attachment 7 Page 371 of 858 -16- TAXATION OR FOR WHICH THE CITY HAS LEVIED OR PLEDGED ANY FORM OF TAXATION. No Additional Bonds Under the Indenture, the Authority covenants that no additional bonds, notes or other indebtedness will be issued or incurred which are payable out of the Revenues in whole or in part. The Lease provides that the Lease may be amended to obligate the City to pay additional amounts of rental for the use and occupancy of the Leased Property, but only if (a) such additional amounts of rental are pledged or assigned for the payment of any bonds, notes, leases or other obligations the proceeds of which are applied to finance or refinance the acquisition or construction of any real or personal property for which the City is authorized to expend funds subject to its control, (b) the City has obtained and filed with the Trustee an appraisal or other written evidence that the value of the Leased Property is at least equal to the aggregate principal amount of the Outstanding Bonds and all such other bonds, notes, leases or other obligations, and (c) the City has filed with the Trustee written evidence that the amendments made for this purpose will not of themselves cause a reduction or withdrawal of any rating then assigned to the Bonds. Source of Lease Payments; Covenant to Budget and Appropriate The Lease Payments are payable from any source of available funds of the City, subject to the provisions of the Lease regarding abatement. See “– Abatement” herein. Under the Lease, the City covenants to take all actions required to include the Lease Payments in each of its budgets during the Term of the Lease and to make the necessary appropriations for all Lease Payments and Additional Rental Payments. This covenant of the City constitutes a duty imposed by law and each and every public official of the City is required to take all actions required by law in the performance of the official duty of such officials to enable the City to carry out and perform the covenants and agreements in the Lease agreed to be carried out and performed by the City. Abatement Termination or Abatement Due to Eminent Domain. Under the Lease, if the Leased Property is taken permanently under the power of eminent domain or sold to a government threatening to exercise the power of eminent domain, the Term of the Lease thereupon ceases as of the day possession is taken. If less than all of the Leased Property is taken permanently, or if the Leased Property is taken temporarily, under the power of eminent domain, then: (a) the Lease will continue in full force and effect with respect thereto and does not terminate by virtue of such taking, and the parties waive the benefit of any law to the contrary; and (b) the Lease Payments are subject to abatement in an amount determined by the City such that the resulting Lease Payments represent fair consideration for the use and occupancy of the remaining usable portions of the Leased Property. Attachment 7 Page 372 of 858 -17- Abatement Due to Damage or Destruction. The Lease Payments are subject to abatement during any period in which by reason of damage or destruction (other than by eminent domain as described above) there is substantial interference with the use and occupancy by the City of the Leased Property or any portion thereof. In the case of damage or destruction of only a portion of the Leased Property, the Lease Payments are subject to abatement in an amount determined by the City such that the resulting Lease Payments represent fair consideration for the use and occupancy of the remaining usable portions of the Leased Property not damaged or destroyed. Such abatement will continue for the period commencing with such damage or destruction and ending with the substantial completion of the work of repair or reconstruction. If any such damage or destruction occurs, the Lease continues in full force and effect and the City waives any right to terminate this Lease by virtue of any such damage and destruction. The City must maintain title insurance on the Leased Property during the term of the Lease, which proceeds would be available to pay Lease Payments in the event of a title defect. Remedies on Default Failure by the City to make Lease Payments, or failure to pay Additional Rental Payments or to observe and perform any other terms, covenants or conditions contained in the Lease or in the Indenture for a period of 30 days after written notice of such failure and request that it be remedied has been given to the City by the Authority or the Trustee, constitute Events of Default under the Lease. Such events permit the Trustee or the Authority to pursue any and all available remedies. However, notwithstanding anything in the Lease or in the Indenture to the contrary, neither the Authority nor the Trustee have any right, under the Lease, the Site Lease or otherwise, to sell, repossess or re-lease the Leased Property, nor is there any right under any circumstances to accelerate the Lease Payments or otherwise declare any Lease Payments that are not then in default to be immediately due and payable. See “BOND OWNERS’ RISKS – Limited Recourse on Default; No Right to Repossess; No Acceleration of Lease Payments” herein. Following an event of default, the Authority or the Trustee may elect either to terminate the Lease and seek to collect damages from the City or to maintain the Lease in effect and seek to collect the Lease Payments as they become due. Under the Assignment Agreement, the Authority assigns all of its rights with respect to remedies in an Event of Default to the Trustee, so that all such remedies will be exercised by the Trustee and the Bond Owners as provided in the Indenture. See “BOND OWNERS’ RISKS – Limited Recourse on Default; No Right to Repossess; No Acceleration of Lease Payments” herein. In the Event of Default, there is no remedy of acceleration of the total Lease Payments due over the term of the Lease and neither the Authority nor the Trustee are empowered to sell or re-let the Leased Property and use the proceeds of such sale or re-letting to redeem the Certificates or pay debt service with respect thereto. The City will be liable only for Lease Payments on an annual basis and, in the Event of Default, the Authority or Trustee would be required to seek a separate judgment each year for that year’s defaulted Lease Payments. Any such suit for money damages would be subject to limitations on legal remedies against municipalities in California, including a limitation on enforcement of judgments against funds of a Fiscal Year other than the Fiscal Year in which the Lease Payments were due and against funds needed to serve the public welfare and interest. Attachment 7 Page 373 of 858 -18- Property Insurance Liability and Property Damage Insurance. Under the Lease, the City is required to maintain or cause to be maintained throughout the Term of the Lease, but only if and to the extent available from reputable insurers at reasonable cost in the reasonable opinion of the City, a standard commercial general liability insurance policy or policies in protection of the Authority, the City, and their respective members, officers, agents, employees and assigns. Such policy or policies must 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 Leased Property. Such policy or policies must provide coverage in such liability limits and be subject to such deductibles as the City deems adequate and prudent. Such insurance may be maintained as part of or in conjunction with any other insurance coverage carried by the City, and may be maintained in whole or in part in the form of self- insurance by the City, subject to the provisions of the Lease regarding self-insurance, or in the form of the participation by the City in a joint powers agency or other program providing pooled insurance. The proceeds of such liability insurance must be applied toward extinguishment or satisfaction of the liability with respect to which paid. Casualty Insurance. Under the Lease, the City is required to procure and maintain, or cause to be procured and maintained, throughout the Term of the Lease, casualty insurance against loss or damage to all buildings situated on the Leased Property, in an amount at least equal to the lesser of (a) 100% of the replacement value of the insured buildings, or (b) 100% of the aggregate principal amount of the Outstanding Bonds. Such insurance must, as nearly as practicable, cover loss or damage by explosion, windstorm, riot, aircraft, vehicle damage, fire and such other hazards as are normally covered by such insurance, and must include earthquake insurance if available at reasonable cost from reputable insurers in the judgment of the City. Such insurance may be subject to such deductibles as the City deems adequate and prudent. Such insurance may be maintained as part of or in conjunction with any other insurance coverage carried by the City, and may be maintained in whole or in part in the form of the participation by the City in a joint powers agency or other program providing pooled insurance; provided that such insurance may not be maintained by the City in the form of self-insurance. The Net Proceeds of such insurance must be applied as provided in the Lease. Insurance Net Proceeds; Form of Policies. Each policy of casualty insurance, rental interruption insurance, and title insurance if any, maintained under the Lease must name the Trustee as loss payee so as to provide that all proceeds thereunder are payable to the Trustee. The City shall pay or cause to be paid when due the premiums for all insurance policies required by the Lease. All such policies shall provide that the Trustee is given 30 days’ notice of each expiration, any intended cancellation thereof or reduction of the coverage provided thereby. The City must file with the Trustee annually, within 90 days following the close of each Fiscal Year, a certificate of the City stating that all policies of insurance required under the Lease are then in full force and effect. The Trustee has no responsibility for the sufficiency, adequacy Attachment 7 Page 374 of 858 -19- or amount of any insurance or self-insurance herein required and is fully protected in accepting payment on account of such insurance or any adjustment, compromise or settlement of any loss. If any liability and property damage insurance maintained under the Lease is provided in the form of self-insurance, the City must file with the Trustee annually, within 90 days following the close of each Fiscal Year, a statement of the risk manager of the City or an independent insurance adviser engaged by the City identifying the extent of such self-insurance and stating the determination that the City maintains sufficient reserves with respect thereto. If any such insurance is provided in the form of self-insurance by the City, the City has no obligation to make any payment with respect to any insured event except from those reserves. THE AUTHORITY The Authority is a joint exercise of powers authority duly organized and existing under and pursuant to that Joint Exercise of Powers Agreement dated as of May 5, 2020, by and between the City and the Industrial Development Authority of the City of Ukiah, and under the provisions of Articles 1 through 4 (commencing with Section 6500) of Chapter 5 of Division 7 of Title 1 of the California Government Code. The Authority was formed for the purpose, among others, of assisting the City in the acquisition, construction and financing of public improvements that are of public benefit to the City. Under the Law, the Authority has the power to lease real property in furtherance of the acquisition of public improvements necessary or convenient for the operation of the City, or to purchase bonds issued by any local agency at public or negotiated sale and may sell such bonds to public or private purchasers at public or negotiated sale. The Authority is governed by a five-member Board of Directors (the “Board”), which consists of the members of the City Council of the City. The Mayor and the Vice Mayor of the City serve as the Chair and Vice Chair, respectively, the City Manager serves as the Executive Director, the City Clerk serves as the Secretary, and the City’s Finance Director serves as the Treasurer of the Authority. The Authority covenants in the Indenture to maintain its existence as a joint exercise of powers agency while any Bonds are Outstanding, including by substituting a new member for the Successor Agency if determined to be necessary for such purpose. THE CITY General The City of Ukiah is the county seat and largest city in Mendocino County. City Hall is located at 300 Seminary Avenue, Ukiah, California. The Ukiah Police Department is also located at City Hall. The City encompasses approximately five square miles and is located in Mendocino County, approximately 100 miles north of San Francisco in the northern coastal region of the State on U.S. Highway 101. The area is centrally located between the San Francisco Bay area, Eureka and Sacramento. The City was incorporated in 1876 and is a general law city operating under a City Council/City Manager form of government. The City has an estimated population of approximately Attachment 7 Page 375 of 858 -20- 15,526 people, with approximately 104,452 people living within a 30-minute drive radius. The City’s Fiscal Year begins on July 1 and ends June 30 of the following year. The City enjoys a moderate climate, with summers that are long, comfortable, arid, and mostly clear and the winters that are short, cold, wet, and partly cloudy. With both City and County administrative offices within the City, Ukiah boasts a large number of public sector employment opportunities, particularly in education and social services. Outside the public sector, the City is known for strong retail and service industries and a tourism industry catering to travelers and adventurers looking to explore the Ukiah Valley. Additionally, the City is surrounded by mineral rich agricultural lands capable of supporting viticulture operations. In recent years, the region has seen an increase in local vineyards opening adjacent to the City. The increase in local wine production and processing reflects the increasing popularity of the Ukiah Valley as a wine region and destination. The City provides police, fire, street and infrastructure maintenance, storm drain, park and community recreation, museum, community development and other services to residents. The City also provides water, wastewater and electric services through the operations of its utility enterprises and operates an airport, golf course and civic center. For additional background, and certain demographic and economic information regarding the City and the County, see APPENDIX B. Historical information set forth in this Official Statement, including Appendix B hereto, is not intended to be predictive of future results. City Government The City operates under a Council-City Manager structure of government. Policy making and legislative authority are vested in the City Council, which is responsible, among other matters, for passing resolutions and ordinances, adopting the City budget, appointing committees, and hiring the City Manager. The City Council is comprised of five members elected by the voters citywide, serving in staggered 4-year terms. The Mayor is appointed by the City Council to one-year terms, and the Council is elected to four- year staggered terms, with members elected every two years. The City Manager is responsible for carrying out the policies and ordinances of the City Council, for overseeing the day-to-day operations of the City, and for appointing the heads of the various departments. The City Council of the City currently consists of the following persons: Name and Office Current Term Expires Juan Orozco, Mayor November 2022 Jim Brown, Vice-Mayor November 2022 Douglas Crane, Council Member November 2024 Josefina Duenas, Council Member November 2024 Mari Rodin, Council Member November 2022 Following are short biographies of the City Manager and Finance Director: Sage Sangiacomo, City Manager. Mr. Sangiacomo serves as the City Manager of the City and the Executive Director of the Authority. Mr. Sangiacomo has served as the City Manager of the City since June 2015 and has over 22 years of experience in municipal administration. In his role as City Manager, Mr. Sangiacomo serves as the administrative head of the City and is Attachment 7 Page 376 of 858 -21- responsible for the operation of all City departments. Prior to becoming City Manager, Mr. Sangiacomo served the City as a Community Services Supervisor from 1998 to 2005, the Community Services Director from 2005 to 2009 and an Assistant City Manager from 2009 to 2015. Mr. Sangiacomo is a credentialed city manager by the International City/County Managers Association and holds a bachelor’s degree from the University of California, Davis. Kristine Lawler, City Clerk. The City Clerk is the local official who administers democratic processes such as elections, access to city records, and all legislative actions ensuring transparency to the public. The City Clerk acts as a compliance officer for the federal, state, and local statutes including the Political Reform Act, the Brown Act, and the Public Records Act. The City Clerk manages public inquiries and relationships and arranges for ceremonial and official functions. Labor Relations The City had approximately 205 full and part-time employees as of June 30, 2021. City employees are represented by seven labor organizations. The City characterizes labor relations as being good, stable and productive. All seven labor organizations are currently operating under 1-year extensions of respective labor agreements. All of the agreements (inclusive of the one year extension) are effective through September 18, 2022. The City has not experienced a major work stoppage by City employees in the last five years. CITY FINANCIAL INFORMATION Accounting and Financial Reporting The City maintains its accounting records in accordance with Generally Accepted Accounting Principles (“GAAP”) and the standards established by the Governmental Accounting Standards Board (“GASB”). The Governmental Accounting Standards Board published its Statement No. 34, Basic Financial Statements – and Management’s Discussion and Analysis – for State and Local Governments, on June 30, 1999 (“GASB Statement No. 34”). GASB Statement No. 34 provides guidelines to auditors, state and local governments and special purpose governments such as school districts and public utilities, on new requirements for financial reporting for all governmental agencies in the United States. Generally, the basic financial statements and required supplementary information should include (i) Management’s Discussion and Analysis; (ii) government-wide financial statements prepared using the economic measurement focus and the accrual basis of accounting and fund financial statements prepared using both the current financial resources measurement focus and the modified accrual method of accounting (governmental funds) and funds using the economic measurement focus and the accrual basis of accounting (proprietary funds) and (iii) required supplementary information. The City’s financial statements are prepared in conformance with the requirements of GASB Statement No. 34. In the government-wide Statement of Net Position and Statement of Activities in the City’s audited financial statements for the Fiscal Year ending June 30, 2021, both governmental and proprietary activities are presented using the accrual basis of accounting. Under the accrual basis of accounting, revenues are recognized when earned and expenses are recorded when the liability is incurred or economic asset is used. Attachment 7 Page 377 of 858 -22- Revenues, expenses, gains, losses, assets and liabilities resulting from exchange and exchange-like transactions are recognized when the exchange takes place. In the fund financial statements, governmental funds are presented on the modified accrual basis of accounting. Under the modified accrual basis of accounting, revenues are recognized when “measurable and available.” Measurable means knowing or being able to reasonably estimate the amount. Available means collectible within the current period or soon enough thereafter to pay current liabilities. The City defines available to be within 60 days of year- end. Expenditures (including capital outlay) are recorded when the related fund liability is incurred, except for principal and interest on long-term liabilities, claims and judgments, and compensated absences, which are reported when due. Governmental capital asset acquisitions are reported as expenditures in governmental funds. Proceeds for governmental long-term liabilities and acquisitions under capital leases are reported as other financing sources. Those revenues susceptible to accrual include taxes and intergovernmental revenues. All other revenue items are considered to be measurable and available only when cash is received by the government. Impact fees are received and recognized as revenue upon project completion and inspection. Certain indirect costs are included in program expenses reported for individual functions and activities. Grant revenues are recognized in the Fiscal Year in which all eligibility requirements are met. Under the terms of grant agreements, the City may fund certain programs with a combination of cost-reimbursement grants, categorical block grants, and general revenues. Thus, both restricted and unrestricted net position are available to finance program expenditures. The City’s policy is to first apply restricted grant resources to such programs, followed by general revenues if necessary. All proprietary funds utilize the accrual basis of accounting. Under the accrual basis of accounting, revenues are recognized when earned and expenses are recorded when the liability is incurred or economic asset is used. Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary funds’ principal operations. The principal operating revenues of the enterprise and internal service funds are charges for services. Operating expenses for proprietary funds include the cost of sales and services, administrative expenses, and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as non-operating revenues and expenses. When both restricted and unrestricted resources are available for use, it is the City’s policy to use restricted resources first, then unrestricted resources as they are needed. The City’s fiduciary funds consist of a private-purpose trust fund, which is reported using the economic resources measurement focus, and agency funds, which have no measurement focus, but utilizes the accrual basis for reporting assets and liabilities. The City Council employs, at the beginning of each Fiscal Year, an independent certified public accounting firm which, at such time or times as specified by the City Council, at least annually, at such other times as such firm shall determine, examines the books, records, inventories and reports of all officers and employees who receive, control, handle or disburse public funds and of all such other officers, employees or departments as the City Council may direct. As soon as practicable after the end of the Fiscal Year, a final audit and report is submitted by such firm to the City Council and a copy of the financial statements as of the close of the Fiscal Year is published. Attachment 7 Page 378 of 858 -23- COVID-19 Pandemic The City continues to monitor the spread of COVID-19 and is working with local, state, and national agencies to address the potential impact of the pandemic upon the City. There can be no assurances that the spread of COVID-19 and/or responses intended to slow the spread of COVID-19 such as declining business and travel activity, will not materially adversely impact the state and national economies and, accordingly, materially adversely impact the financial condition of the City and the City’s General Fund. In addition, the City may experience increased personnel costs and/or reduced revenues due to the COVID-19 situation and the related impact on economic and other activity in and around the City. See the references to COVID-19 in the following subsection in connection with the unknown impacts on the City’s budgeting process. General Fund, the Budget Process and Information The City’s General Fund is its primary operating fund, and is where the City accounts for all its general-purpose revenues. It is distinguished from the City’s other governmental funds that are used to account for special purpose revenues, capital projects, debt service activities, and monies held for the benefit of others. The City operates on a Fiscal Year basis that begins on the first day of July of each year and ends on the thirtieth day of June the following year. The annual budget adopted by the City Council provides for the general operation of the City. Development of the City’s annual budget is a process which generally begins in February and March and continues until the budget is adopted by the City Council in June. The General City Budget includes programs which are provided on a largely city-wide basis. The programs and services are financed primarily by the City’s share of sales tax, property tax, revenues from the State and/or federal government, and charges for services provided. The City Council approves total budgeted appropriations and any amendments to appropriations throughout the Fiscal Year. Appropriations lapse at Fiscal Year-end. The City Council generally reauthorizes appropriations for continuing projects and activities. The City Council has the legal authority to amend the budget of any fund at any time during the Fiscal Year. The budgetary level of control (the level on which expenditures may not legally exceed appropriations) is generally at the fund level. The City Manager is authorized to transfer budgeted amounts within departments within any fund; however, any revisions that alter the total expenditures of any fund must be approved by the City Council. Long-Term Financial Planning. The City incorporates long-term financial planning into its budget process in several ways. First, the City has established a set of financial policies that establish goals for the allocation of public resources in the manner best suited to the efficient provision of City services to citizens and visitors present within the City. Some of these policies call for maintaining adequate cash reserves and providing on-going maintenance of infrastructure and buildings, which are vital to sound fiscal management. Second, the Council undertakes a strategic planning process to establish goals and priorities for the organization after taking into account public input. Specifically, the Council engaged the community at a public hearing and by soliciting ideas and input through a variety of Attachment 7 Page 379 of 858 -24- means. Based on this input, the City Council adopts goals, objectives, and resources permit objectives. Third, the City maintains a long-range capital planning process that helps drive annual capital funding decisions as well as periodic bond issues for larger investments. Finally, all Governmental Accounting Standards Board pronouncements are monitored and implemented into the City’s financial statements. Budgetary Control Policy. The City maintains budgetary controls. The objective of these budgetary controls is to ensure compliance with legal provisions embodied in the annual appropriated budget approved by the City Council. Activities of the general fund, special revenue funds, debt service funds, capital projects funds, enterprise funds, and internal service funds are included in the annual appropriated budget. A Five- Year Capital Improvement Plan is also adopted for the capital projects. The level of budgetary control (the level at which expenditures cannot legally exceed the appropriated amount) is established by function and activity within an individual fund. The City’s budgetary records are maintained on a modified accrual basis. Revenues are recorded when measurable and available and expenditures are recorded when goods or services are received and the liability incurred. Based on the City’s financial management policies, the City is required to maintain a balanced operating budget, which is adopted by resolution on or before June 30th for the ensuing Fiscal Year. Following the adoption of the budget, it is sometimes necessary to amend the budget. Appropriations in the budget may be adjusted by recommendation of the Finance Director and approval by the City Manager when the budget is not increased in total amount. Savings from appropriations in one section of a department budget may be used to fund another section of a department budget. Any increase in appropriations that increases the total adopted budget must be approved by the City Council. The City Council formally reviews the City’s fiscal condition and amends appropriations, if necessary, six months after the beginning of each fiscal year. The adopted budget for fiscal year 2021-22 was approved on June 16, 2021 (the “Adopted Budget”). The Adopted Budget projects General Fund revenues in fiscal year 2021-22 to be approximately $33 million. Understanding COVID-19 will impact directly the City’s finances for fiscal years 2021-22, the City adopted a conservative budget for fiscal year 2020-21. The City’s economic health depends largely on the economic health of our local businesses. Nearly 75% of the City’s General Fund revenue is comprised of taxes--sales tax, transient occupancy (lodging) tax, gas tax, etc. all of which were significantly impacted during the pandemic. The City also anticipated that the utility operations would be impacted by revenue declines ranging from 5% -8%. The City budgeted accordingly. The actual impacts varied tremendously. While some businesses grounded to a halt during the shelter-in-place, others adapted and even thrived. Although the City’s revenues shifted significantly in some areas, the overall impact has not been as devastating as was anticipated. The City expects to consider an update and revision to the Adopted Budget quarterly, as the City receives more data about COVID-19’s impacts on the local economy and the City’s Attachment 7 Page 380 of 858 -25- operations and finances. The City does not currently believe that the COVID-19 outbreak will materially adversely affect its ability to pay Base Rental Payments. See the caption “– COVID-19 Pandemic” above for a discussion of the potential impact of COVID-19 on the City’s operations and finances. Current Budget and Historical Budget Information. Set forth in Table 1 are the General Fund budgets that were adopted for Fiscal Years 2020-21 and 2021-22 compared to the estimated actual results for Fiscal Years 2020-21. During each Fiscal Year, the budget may be amended and revised as necessary by the City Council. TABLE 1 City of Ukiah General Fund Budget Summary Fiscal Years 2020-21 and 2021-22 2020-21 Adopted Budget 2020-21 Estimated Actuals 2021-22 Adopted Budget Revenues Taxes $18,977,091 $19,478,520 $19,957,835 Charges for service 2,250,271 1,874,847 1,789,801 Grants and subventions 2,734,988 2,173,760 751,533 Use of money and property 157,122 102,317 92,916 Fines, forfeitures and penalties 60,691 77,500 55,000 Licenses, permits and franchises 2,089,845 2,158,401 2,167,625 Other revenues 366,200 53,576 1,719,937 Other financing sources 120,000 259,000 6,603,560 Total Revenues $26,765,207 $26,177,921 $33,138,207 Expenditures Non-departmental 3,427,457 3,767,157 7,487,793 Legislative -- -- -- City manager 129,766 184,172 200,136 Finance 6,820 -- -- City attorney -- -- -- City treasurer -- -- -- Human resources/risk management 1 520 -- Police 9,000,509 9,072,190 9,718,427 Fire authority 3,176,460 3,868,051 6,285,013 Community services 3,070,582 3,316,024 3,386,998 Community development 1,142,970 1,134,271 1,302,174 Public works 4,146,960 3,213,755 1,716,377 Total Expenditures $24,101,524 $24,556,139 $30,096,918 ____________________ Source: City of Ukiah - 2020-21 and 2021-22 Adopted Budgets. Attachment 7 Page 381 of 858 -26- General Fund Key Revenue Sources. The four major general fund revenue sources of the City, which together accounted in Fiscal Year 2020-21 for approximately 82% of the general fund revenues (collectively, the “Key Revenue Sources”), are Sales Tax (approximately 57.9% of total general fund revenue), Property Tax (approximately 12.7% of total general fund revenue), Franchise Taxes (approximately 6.7% of total general fund revenue) and Transient Occupancy Tax (approximately 5.1% of total general fund revenues). Also see “APPENDIX A – AUDITED FINANCIAL STATEMENTS OF THE CITY FOR FISCAL YEAR 2020-21” herein. The City’s receipt of taxes and other revenue will likely be impacted by the economic effects of the coronavirus. See “RISK FACTORS – COVID-19 Pandemic” and “– General Fund, the Budget Process and Information” for a description of the projected impact that COVID-19 will have on the City’s finances. The following Table 2 sets forth the audited revenues received by the City for each of the Key Revenue Sources for Fiscal Years 2016-17 through 2020-21, which have been totaled and compared to the prior Fiscal Year to illustrate the amount and percent of change. Table 2 CITY OF UKIAH Fiscal Years 2016-17 through 2020-21 General Fund Key Revenue Sources and Change From Prior Year(1) Fiscal Year Sales Taxes Property Taxes Franchise Taxes Transient Occupancy Total of Key Tax Sources Taxes % Change From Prior Year 2016-17 $9,805,225 $1,470,323 $1,551,794 $1,302,336 $14,129,678 --% 2017-18 10,802,364 2,838,902 1,653,146 1,406,417 16,700,829 18.2 2018-19 11,974,379 2,984,192 1,781,141 1,496,473 18,236,185 9.2 2019-20 13,313,206 3,139,960 1,742,671 1,365,477 19,561,314 7.3 2020-21 15,535,021 3,408,846 1,815,271 1,362,134 22,121,272 13.1 (1) Includes transfers in from other funds. Source: City of Ukiah Attachment 7 Page 382 of 858 -27- The following Table 3 sets forth the audited revenues received by the City for the total of Key Revenue Sources and total of Other General Fund Revenue Sources for Fiscal Years 2018- 19 through 2020-21. TABLE 3 City of Ukiah General Fund Revenues by Revenue Source Fiscal Years 2018-19 through 2020-21 2018-19 2019-20 2020-21 Category Revenues % of Total Revenues % of Total Revenues % of Total Taxes and revenues Property tax $2,984,192 14% $3,139,960 14% $3,408,846 13% Sales Tax 11,974,379 56% 13,313,206 60% 15,535,021 58% Transient occupancy 1,496,473 7% 1,365,477 6% 1,362,134 5% Business license tax 293,706 1% 389,829 2% 484,533 2% Other taxes 462 0% 888 0% 1,136 0% Franchise fees 1,781,141 8% 1,742,671 8% 1,815,271 7% Charges for services 1,615,737 8% 1,340,123 6% 2,434,204 9% Licenses and permits 211,113 1% 259,533 1% 276,752 1% Grants and contributions and donations 375,300 2% 170,187 1% 1,226,237 5% Intergovernmental 142,885 1% 79,192 0% 77,668 0% Fines, penalties and forfeitures 33,588 0% 29,716 0% 25,933 0% Use of money and property -- 0% 203,726 1% 52,427 0% Miscellaneous(2) 426,525 2% 197,566 1% 138,952 1% Total Revenues(1) $21,335,501 100% $22,232,074 100% $26,839,114 100% ________________ (1) Totals may not add due to rounding. (2) Includes facility rental, interest, rent and concessions. Source: City of Ukiah - audited financial statements 2018-19 through 2020-21. Sales and Use Taxes Sales & Use Taxes represents the largest source of tax revenues to the City’s General Fund, accounting for approximately 13% of total General Fund revenues over the past three fiscal years. Sales & uses taxes are less stable sources of revenues to the City, given that they are based on consumer spending within the City which is impacted by a variety of factors including the overall economy and other factors. Measure P. Measure P, passed by a simple majority (50 percent plus 1) of Ukiah voters in November of 2014, is a general (unrestricted) transaction and use tax. A general, unrestricted tax is one that can be used to fund any program, function, service, or project at the discretion of the City Council. It is not a special, restricted tax, which would require approval of two-thirds of the voting public. It continued a sun-set transaction and use tax, known as Measure S (2005), accompanied by an advisory Measure T (2005). Measure P, however, was passed with no advisory measure. The purpose of Measure P is to augment public safety expenditures to provide a higher level of police and fire service to the community. Amounts collected from the tax are to be used in addition to the commitment of the General Fund and not in replacement of. Measure Y. Measure Y, passed by a simple majority (50 percent plus 1) of Ukiah voters in November of 2016, is a general (unrestricted) transaction and use tax. A general, unrestricted tax is one that can be used to fund any program, function, service, or project at the discretion of the City Council. It is not a special, restricted tax, which would require approval of two-thirds of the voting public. Measure Z, passed in conjunction with Measure Y, was a distinctly separate, Attachment 7 Page 383 of 858 -28- advisory Measure Y, indicating the voting public's preference for the use of Measure Y proceeds. Language for the two ballot measures was as follows: Ballot Measure “Y”: Shall Ordinance No. 1165 be adopted to impose as a general tax an additional transaction (sales) and use tax of on-half of one percent within the city limits of the City of Ukiah to fund essential City services, including street repair and maintenance. Such tax increase is estimated to raise $2,470,000 annually at a rate of 0.5 percent. The duration of the tax will continue unless or until the tax is repealed by majority vote in a municipal election. Advisory Measure “Z”: Shall street repair and maintenance and related public infrastructure improvements be the exclusive use of the revenues from an additional 0.5 percent sales tax int eh City of Ukiah and add to and not replace current spending for street maintenance and repair. Historic Taxable Transactions. The following table shows historical taxable transactions in the City for the most recent five years available. TABLE 4 City of Ukiah Taxable Transactions Fiscal Years 2017 through 2021 (In Thousands) 2017 2018 2019 2020 2021 Motor Vehicle and Parts Dealers $61,547,375 $58,793,138 $59,115,235 $79,937,692 $93,853,086 Home Furnishings and Appliances 9,449,811 8,609,539 8,660,568 8,238,280 10,243,291 Building Materials 88,519,926 86,685,046 91,786,663 106,592,154 119,366,619 Food and beverage stores 29,212,992 30,329,807 26,556,784 26,372,363 27,655,252 Gasoline stations 35,627,317 40,000,948 34,945,103 33,131,882 36,755,912 Apparel stores 19,654,152 20,371,221 20,163,571 17,217,727 23,112,175 General merchandise stores 72,734,989 71,525,092 128,360,894 140,726,173 157,291,672 Food services and drinking places 52,145,413 51,439,050 51,886,300 47,727,976 50,930,270 Other retail stores 44,195,545 42,733,113 42,800,805 45,717,519 56,752,376 All other outlets 51,353,437 52,641,884 53,929,660 59,811,423 64,735,234 Total All Outlets $464,440,957 $463,128,838 $518,205,583 $565,473,189 $640,695,887 ____________________ Source: California Department of Tax and Fee Administration (as of January 11, 2022). State-Wide Sales Tax Law. Taxable transactions in the City are currently subject to the following sales and use tax, of which the City’s share is only a portion. The City collects a percentage of taxable sales in the City (minus certain administrative costs) pursuant to the Bradley-Burns Uniform Local Sales and Use Tax (the “Sales Tax Law”). The State collects and administers the sales tax under the Sales Tax Law, and makes distributions on taxes collected within the City, as shown in the following table. Attachment 7 Page 384 of 858 -29- TABLE 5 City of Ukiah Sales Tax Rate Effective July 1, 2021 Statewide Rate 7.250% Mendocino County Mental Health Treatment Act Tax 0.500 Mendocino Library Special Transactions and Use Tax 0.125 City of Ukiah Transactions and Use Tax 0.500 City of Ukiah Transactions and Use Tax 0.500 Total 8.875% ____________ Source: City of Ukiah Finance Department. Sales and use taxes are complementary taxes; when one applies, the other does not. In general, the statewide sales tax applies to gross receipts of retailers from the sale of tangible personal property in the State. The use tax is imposed on the purchase, for storage, use or other consumption in the State of tangible personal property from any retailer. The use tax generally applies to purchases of personal property from a retailer outside the State where the use will occur within the State. The sales tax is imposed upon the same transactions and items as the statewide sales tax and the statewide use tax. Certain transactions are exempt from the State sales tax, including sales of the following products: • food products for home consumption; • prescription medicine; • newspapers and periodicals; • edible livestock and their feed; • seed and fertilizer used in raising food for human consumption; and • gas, electricity and water when delivered to consumers through mains, lines and pipes. This is not an exhaustive list of exempt transactions. A comprehensive list can be found in the State Board of Equalization’s Publication No. 61 (February 2017) entitled “Sales and Use Taxes: Exemptions and Exclusions,” which can be found on the State Board of Equalization’s website at http://www.boe.ca.gov/. The reference to this Internet website is provided for reference and convenience only. The information contained within the website may not be current, has not been reviewed by the City and is not incorporated in this Official Statement by reference. Sales Tax Collection Procedures. Collection of the sales and use tax is administered by the California Department of Tax and Fee Administration (the “CDTFA”). This process was formerly administered by the State Board of Equalization. The Taxpayer Transparency and Fairness Act of 2017, which took effect July 1, 2017, restructured the State Board of Equalization and separated its functions among three separate entities: the State Board of Equalization, the CDTFA and the Office of Tax Appeals. The State Board of Equalization will continue to perform the duties assigned to it by the State Constitution, while all other duties will be transferred to the newly established CDTFA and the Office of Tax Appeals. CDTFA will handle most of the taxes and fees previously collected by the State Board of Equalization, including sales and use tax. Attachment 7 Page 385 of 858 -30- Under the Sales and Use Tax Law, all sales and use taxes collected by the CDTFA under a contract with any city, city and county, or county are required to be transmitted by the CDTFA to such city, city and county, or county periodically as promptly as feasible. These transmittals are required to be made at least twice in each calendar quarter. Under its procedures, the CDTFA projects receipts of the sales and use tax on a quarterly basis and remits an advance of the receipts of the sales and use tax to the City on a monthly basis. The amount of each monthly advance is based upon the CDTFA’s quarterly projection. During the last month of each quarter, the CDTFA adjusts the amount remitted to reflect the actual receipts of the sales and use tax for the previous quarter. The CDTFA receives an administrative fee based on the cost of services provided by the Board to the City in administering the City’s sales tax, which is deducted from revenue generated by the sales and use tax before it is distributed to the City. As part of the State government’s response to the COVID-19 pandemic, certain businesses were able to defer the payment of their sales taxes due to the City. Other Sources of Revenues City Utility Franchise Fees. This revenue source is a charge to the City’s electric utility. Franchise fees are not taxes; rather, they are rents paid by utility providers to operate on or in City rights-of-way and City property, such as roads, sidewalks, parklands, etc. The rents are established by the City Council and typically are correlated to gross revenues generated by the utility provider. Revenues from this source remain stable albeit lower than otherwise would be due to the economic effects of the pandemic on the utility commercial customer base. Business License Tax. Businesses that operate within City limits are required to obtain a business license. The fees are based on the type of business and an estimate of their gross receipts. The proceeds from the tax collected are available for unrestricted use in the General Fund. As mentioned earlier, receipts were higher in 2020 than in the prior year due to late payments. Before the onset of the pandemic in March 2020, business license activity was trending positively. Refuse Disposal Franchise Fees. This revenue source is a charge to the City’s franchise solid waste hauler. As discussed earlier, franchise fees are not taxes; rather, in the case of refuse disposal franchise fees they are rents paid by the refuse hauler for the use of rights-of-way to provide and distribute its services. Refuse hauler vehicles used to haul refuse are utilized more frequently and wear roads more significantly than other commercial or non-commercial vehicles. Revenues from this source were higher in FY 2019-20 than in the preceding year due to increased sales and rate adjustments by the hauler, Ukiah Waste Solutions. Transient Occupancy Tax Transient occupancy tax (“TOT”) revenues are typically one of the largest sources of General Fund revenues. Commonly referred to as a “bed,” “hotel,” or “room” tax this revenue source was performing strongly over the last two years up until March. Travel restriction brought on by the pandemic will continue to negatively affect this revenue source. However, driven by increased tourism in the greater Ukiah Valley area and a larger volume of travelers heading north, this revenue source is poised to continue its growth trend for several more years after the pandemic has abated. Visitors are stopping in Ukiah as a final layover before making the trek to Attachment 7 Page 386 of 858 -31- Fort Bragg and Humboldt County. The TOT rate in Ukiah currently is 10 percent; however, 1 percentage point has been committed by the Ukiah City Council to fund the Visit Ukiah Program. Property Taxes Property Taxes represents the second-largest sources of taxes to the City’s General Fund, after sales/use taxes. Property taxes represent a very stable source of revenue to the City, and are based in large part on assessed valuations of property located in the City. Property Tax Delinquencies; Teeter Plan. Certain counties in the State of California, including Mendocino, offer a statutory program entitled Alternate Method of Distribution of Tax Levies and Collections and of Tax Sale Proceeds (the “Teeter Plan”). Under the Teeter Plan local taxing entities receive 100% of their tax levies net of delinquencies, but do not receive interest or penalties on delinquent taxes collected by the county. The County includes the City’s property tax collections in its Teeter Plan. Consequently, the City’s receipt of property taxes is equal to 100% of the amount levied. There is no assurance that the County will continue the Teeter Plan or that the City will continue to participate in the Teeter Plan. Delinquencies in the payment of property taxes could have an adverse effect on the ability of the City to make Lease Payments should the County discontinue the Teeter Plan or the City withdraw from or not be able to continue in the Teeter Plan. General Method of Property Tax Calculations. Proposition 13, passed in 1978, established the current property tax regime for local agencies, including the City, throughout the State. Under Proposition 13, subject to voter-approved debt and certain other exceptions, the base property tax rate on a parcel is limited to 1% of its assessed value and the property tax collected by this 1% County-wide rate is shared by the local agencies eligible to receive property taxes within the applicable County pursuant to applicable State law. Under Proposition 13, the 1975-76 fiscal year serves as the original base year used in determining the assessment for real property. Thereafter, annual increases to the base year value are limited to the inflation rate, as measured by the California Consumer Price Index, or 2%, whichever is less. A new base year value, however, is also established whenever a property, or portion thereof, has had a change in ownership or has been newly constructed. See “CONSTITUTIONAL AND STATUTORY LIMITATIONS ON TAXES AND APPROPRIATIONS – Article XIIIA of the State Constitution” for additional information. Proposition 8, enacted in 1978, allows for a temporary reduction in assessed value when a property suffers a “decline-in-value.” As of the January 1st (lien date) each year, the Assessor must enroll either a property’s Proposition 13 value (adjusted annually for inflation by no more than 2%) or its current market value, whichever is less. When the current market value replaces the higher Proposition 13 value, the lower value is commonly referred to as a “Proposition 8 Value.” “Proposition 8 values” are temporary and, once enrolled, must be reviewed annually by the assessor until the Proposition 13 adjusted base year value is enrolled. The California Tax on Commercial and Industrial Properties for Education and Local Government Funding Initiative has qualified to appear on the ballot in California as an initiated Constitutional amendment on November 3, 2020. The ballot initiative would amend the State Constitution to require commercial and industrial properties, except those zoned as commercial agriculture, to be taxed based on their market value. The proposal to assess taxes on commercial and industrial properties at market value, while continuing to assess taxes on residential properties based on purchase price as described above, is known as “split roll.” At this time, the Attachment 7 Page 387 of 858 -32- City is unable to determine the likelihood of passage of the measure or the impact on the City’s property tax receipts from passage. Levy and Collection of Property Taxes. Property taxes are levied for each fiscal year on taxable real and personal property as of the preceding January 1. For assessment and collection purposes, property is classified either as “secured” or “unsecured” and is listed accordingly on separate parts of the assessment roll. The “secured roll” is that part of the assessment roll containing State-assessed public utilities property and real property the taxes on which have a viable tax lien, in the opinion of the County Assessor, to secure payment of the taxes. Other property is assessed on the “unsecured roll.” Property taxes on the secured roll are due in two installments, on November 1 and February 1 of each fiscal year, and become delinquent on December 10 and April 10, respectively. A penalty of 10% attaches immediately to all delinquent payments. Property on the secured roll with respect to which taxes are delinquent become tax defaulted on or about June 30 of the fiscal year. Such property may thereafter be redeemed by payment of a penalty of 1% per month to the time of redemption, plus costs and a redemption fee. If taxes are unpaid for a period of five years or more, the property is deeded to the State and may be sold at public auction. Property taxes on the unsecured roll are due as of the January 1 lien dates and become delinquent on August 31. A 10% penalty attaches to delinquent unsecured taxes. If unsecured taxes are unpaid at 5:00 p.m. on October 31, an additional penalty of 1% attaches to them on the first day of each month until paid. The County has four ways of collecting delinquent unsecured personal property taxes: (1) a civil action against the taxpayer; (2) filing a judgment in the office of the County Clerk specifying certain facts in order to obtain a lien on certain property of the taxpayer; (3) filing a certificate of delinquency for record in the County Recorder’s office in order to obtain a lien on certain property of the taxpayer; and (4) seizure and sale of personal property, improvements or possessory interests belonging or assessed to the assessee. Beginning in 1978-79, Proposition 13 and its implementing legislation shifted the function of property tax allocation to the counties, except for levies to support prior voted debt, and prescribed how levies on county-wide property values are to be shared with local taxing entities within each county. Attachment 7 Page 388 of 858 -33- Historical Assessed Valuations. The table below presents the assessed valuation of taxable property in the City from fiscal year 2012-13 through fiscal year 2021-22. TABLE 6 City of Ukiah Assessed Valuations of All Taxable Property Fiscal Years 2012-13 through 2021-22 Fiscal Year Local Secured Utility Unsecured Total 2012-13 $1,171,599,083 $0 $78,474,614 $1,250,073,697 2013-14 1,195,466,105 0 70,234,083 1,265,700,188 2014-15 1,224,746,468 0 69,743,046 1,294,489,514 2015-16 1,267,903,229 0 68,336,666 1,336,239,895 2016-17 1,304,711,495 0 68,027,482 1,372,738,977 2017-18 1,364,333,801 0 72,072,094 1,436,405,895 2018-19 1,424,497,607 0 74,628,367 1,499,125,974 2019-20 1,491,766,585 0 76,242,235 1,568,008,820 2020-21 1,542,790,339 0 68,242,957 1,611,033,296 2021-22 1,580,161,957 0 71,086,938 1,651,248,895 Source: California Municipal Statistics Inc. [Remainder of Page Intentionally Left Blank] Attachment 7 Page 389 of 858 -34- Assessed Valuations and Parcels by Land Use. The following table shows secured assessed valuations and parcels by land use for fiscal year 2021-22. As shown in the table, approximately 80% of the parcels in the City, representing almost 69% of the assessed valuation in the City, has residential uses. Table 7 City of Ukiah Secured Assessed Valuation and Parcels by Land Use Fiscal Year 2021-22 2021-22 % of No. of % of Non-Residential: Assessed Valuation (1) Total Parcels Total Agricultural/Rural $890,499 0.06% 7 0.14% Commercial/Office 417,438,043 26.42 598 11.75 Vacant Commercial 16,876,526 1.07 81 1.59 Industrial 27,538,364 1.74 32 0.63 Vacant Industrial 8,209,754 0.52 12 0.24 Recreational 3,529,605 0.22 3 0.06 Government/Social/Institutional 10,368,916 0.66 208 4.09 Miscellaneous 3,162,701 0.20 55 1.08 Subtotal Non-Residential $488,014,408 30.88% 996 19.57% Residential: Single Family Residence $915,865,347 57.96% 3,569 70.13% Mobile Home 4,710,222 0.30 91 1.79 Mobile Home Park 17,677,313 1.12 10 0.20 2 Residential Units/Duplex 36,317,513 2.30 148 2.91 3+ Residential Units/Apartments 101,690,439 6.44 168 3.30 Miscellaneous Residential 4,415,211 0.28 12 0.24 Vacant Residential 11,465,453 0.73 95 1.87 Subtotal Residential $1,092,141,498 69.12% 4,093 80.43% Total $1,580,155,906 100.00% 5,089 100.00% _________________ (1) Local Secured Assessed Valuation, excluding tax exempt property. Source: California Municipal Statistics, Inc. [Remainder of Page Intentionally Left Blank] Attachment 7 Page 390 of 858 -35- Per Parcel Assessed Valuation of Single-Family Homes. Table 8 below shows the per parcel assessed valuation for improved single-family homes (according to 2021-22 assessed valuation) in the City. The average assessed valuation is $257,266, and the median assessed valuation is $247,364. Table 8 CITY OF UKIAH Fiscal Year 2021-22 Per Parcel Assessed Valuation of Single-Family Homes No. of 2021-22 Average Median Parcels Assessed Valuation Assessed Valuation Assessed Valuation Single Family Residential 3,560 $915,865,347 $257,266 $247,364 2021-22 No. of % of Cumulative Total % of Cumulative Assessed Valuation Parcels (1) Total % of Total Valuation Total % of Total $0 - $49,999 157 4.410% 4.410% $5,204,211 0.568% 0.568% $50,000 - $99,999 372 10.449 14.860 27,649,205 3.019 3.587 $100,000 - $149,999 383 10.758 25.618 48,128,619 5.255 8.842 $150,000 - $199,999 471 13.230 38.848 82,971,129 9.059 17.901 $200,000 - $249,999 426 11.966 50.815 95,418,461 10.418 28.320 $250,000 - $299,999 418 11.742 62.556 114,954,945 12.552 40.871 $300,000 - $349,999 450 12.640 75.197 145,837,993 15.924 56.795 $350,000 - $399,999 391 10.983 86.180 146,302,439 15.974 72.769 $400,000 - $449,999 212 5.955 92.135 89,530,108 9.775 82.545 $450,000 - $499,999 99 2.781 94.916 46,801,728 5.110 87.655 $500,000 - $549,999 63 1.770 96.685 32,937,241 3.596 91.251 $550,000 - $599,999 41 1.152 97.837 23,491,049 2.565 93.816 $600,000 - $649,999 25 0.702 98.539 15,513,673 1.694 95.510 $650,000 - $699,999 19 0.534 99.073 12,683,519 1.385 96.895 $700,000 - $749,999 7 0.197 99.270 5,016,608 0.548 97.442 $750,000 - $799,999 8 0.225 99.494 6,230,527 0.680 98.123 $800,000 - $849,999 8 0.225 99.719 6,558,092 0.716 98.839 $850,000 - $899,999 1 0.028 99.747 853,767 0.093 98.932 $900,000 - $949,999 3 0.084 99.831 2,762,954 0.302 99.234 $950,000 - $999,999 2 0.056 99.888 1,953,573 0.213 99.447 $1,000,000 and greater 4 0.112 100.000 5,065,506 0.553 100.000 3,560 100.000% $915,865,347 100.000% (1) Improved single-family residential parcels. Excludes condominiums and parcels with multiple family units. Source: California Municipal Statistics, Inc. [Remainder of Page Intentionally Left Blank] Attachment 7 Page 391 of 858 -36- Principal Property Taxpayers. The top twenty largest local secured property taxpayers in the City, as shown on the 2021-22 secured tax roll, are listed in the table below. For fiscal year 2021-22, the total assessed valuation of the twenty largest local secured taxpayers is 12.30% of the total City fiscal year 2021-22 assessed valuation of $194,428,281. See “–Property Taxes” above for additional information on the levy and collection of property taxes in the City. TABLE 9 City of Ukiah Principal Property Taxpayers (Secured Roll) Fiscal Year 2021-22 2021-22 % of Property Owner Primary Land Use Assessed Valuation Total (1) 1. Costco Wholesale Corporation Commercial $ 23,290,334 1.47% 2. Pear Tree REH LLC Shopping Center 19,781,704 1.25 3. Pear Orchard Associates Commercial 14,782,803 0.94 4. Savings Bank of Mendocino County Bank 13,746,382 0.87 5. S & K Inns of America Inc. Hotel/Motel 12,271,310 0.78 6. Skycrest Properties LP Commercial 10,835,477 0.69 7. Wal Mart Real Estate Business Trust Commercial 10,589,103 0.67 8. Redwood Business Park of Ukiah Commercial 10,565,332 0.67 9. Robert S. Sherwood Apartments 8,921,039 0.56 10. Marina Bay Crossing LLC Industrial 8,264,745 0.52 11. RCI Sierra Sunset LLC Apartments 7,627,928 0.48 12. Safeway Inc. Supermarket 7,244,239 0.46 13. FC Ranger RE Mountain View LLC Convalescent Hospital 6,316,857 0.40 14. Legacy Four Ukiah LLC Commercial 6,092,737 0.39 15. Manor Oaks Mobile Estates LLC Mobile Home Park 5,948,993 0.38 16. Rancho Del Rey Asset Partners LP Mobile Home Park 5,933,839 0.38 17. Arthur McChesney Industrial 5,901,948 0.37 18. Echelon Communities LLC Apartments 5,732,808 0.36 19. Shami Enterprises LLC Shopping Center 5,326,831 0.34 20. Willcon LLC Commercial 5,253,872 0.33 $194,428,281 12.30% _________________________________ (1) The total City secured assessed valuation for fiscal year 2021-22 is $1,580,155,906. Source: California Municipal Statistics, Inc. [Remainder of Page Intentionally Left Blank] Attachment 7 Page 392 of 858 -37- Financial Statements The City’s accounting policies conform to generally accepted accounting principles and reporting standards set forth by the State Controller. The audited financial statements also conform to the principles and standards for public financial reporting established by GASB. Basis of Accounting and Financial Statement Presentation. The government-wide financial statements are reported using the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Property taxes are recognized as revenues in the year for which they are levied. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the provider have been met. Governmental fund financial statements are reported using the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. Expenditures generally are recorded when a liability is incurred, as under accrual accounting. However, debt service expenditures are recorded only when payment is due. Audited Financial Statements. Set forth in the following tables is the City’s General Fund balance sheets and statements of revenues, expenditures and changes in General Fund Balance for fiscal years 2016-17 through 2020-21, which are based on the City’s audited financial statements. The balance sheets and statements presented in this Official Statement are subject to the various notes attached to the City’s financial statements for the respective years. The City’s Comprehensive Annual Financial Report (“CAFR”) for Fiscal Year 2020-21, including the City’s audited financial statements, is set forth in Appendix A. General Fund Historical Financial Data The following Tables 10 and 11 provide a five-year history of (i) the City’s General Fund revenues, expenditures, and changes in fund balances for Fiscal Years 2016-17 through 2020- 21 and (ii) the City’s Comparative Balance Sheet for Fiscal Years 2016-17 through 2020-21. Attachment 7 Page 393 of 858 -38- TABLE 10 City of Ukiah Statements of Revenues, Expenditures and Changes in General Fund Balance Fiscal Years 2016-17 through 2020-21 2016-17 2017-18 2018-19 2019-20 2020-21 Revenues Taxes: Property tax $1,470,323 $2,836,902 $2,984,192 $3,139,960 $3,408,846 Sales Tax 9,805,225 10,802,364 11,974,379 13,313,206 15,535,021 Transient occupancy 1,302,336 1,406,417 1,496,473 1,365,477 1,362,134 Business license tax 382,825 358,610 293,706 389,829 484,533 Other taxes 249 51,389 462 888 1,136 Franchise fees -- 1,653,146 1,781,141 1,742,671 1,815,271 Charges for services 1,427,085 1,679,034 1,615,737 1,340,123 2,434,204 Licenses and permits 1,792,595 548,627 211,113 259,533 276,752 Grants and contributions and donations 83,390 -- 375,300 170,187 1,226,237 Intergovernmental -- 34,296 142,885 79,192 77,668 Fines, penalties and forfeitures 73,835 113,139 33,588 29,716 25,933 Use of money and property 95,016 -- -- 203,726 52,427 Facility rental -- -- 73,362 -- -- Interest, rent and concessions -- 170,939 91,154 -- -- Miscellaneous 7,519 110,223 262,009 197,566 138,952 Total Revenues 16,440,398 19,765,086 21,335,501 22,232,074 26,839,114 Expenditures Current: General Government 430,390 282,860 45,889 283,477 60,132 Public safety 11,200,362 12,571,245 11,768,069 12,188,198 12,701,313 Housing and community development 822,166 1,019,061 1,107,911 1,130,666 1,044,627 Public works 1,158,550 1,643,691 1,518,533 1,470,613 1,487,609 Parks, buildings, and grounds 1,312,208 1,412,291 26 -- 1,189,386 Recreation and culture 1,036,260 1,250,665 2,753,995 3,199,032 2,435,717 Economic development and redevelopment 181,387 -- 178,493 203,508 256,392 Debt Service: Interest -- 49,925 142,679 91,304 90,242 Principal -- 14,055 80,070 55,523 56,392 Capital lease principal 16,243 -- 101,727 104,282 127,291 Capital lease interest -- -- 26,232 23,678 26,949 Capital outlay 44,479 7,904,131 2,152,947 389,016 1,877,910 Total expenditures 16,202,045 26,147,924 19,876,571 19,139,297 21,353,960 Excess (deficiency) of revenues over (under) expenditures 238,353 (6,380,838) 1,458,930 3,092,777 5,485,154 Other financing sources(uses) Transfers in 415,601 851,338 166,699 375,712 129,001 Transfers out (544,719) (748,546) (2,959,541) (3,285,876) (3,687,933) Debt proceeds -- -- -- 227,607 -- Issuance of debts -- 5,125,731 -- -- -- Gain (loss) from sale of assets -- -- -- 57,078 -- Total other financing sources (129,118) 5,228,523 (2,792,842) (2,625,479) (3,558,932) Extraordinary item Restatement of loan from former Ukiah Redevelopment agency -- -- 6,000,000 -- -- Total -- -- 6,000,000 -- -- Net Change in fund balances 109,235 (1,152,315) 4,666,088 467,298 1,926,222 Beginning of year 5,213,001 5,322,236 4,169,921 8,836,009 9,303,307 End of year $5,322,236 $4,169,921 $8,836,009 $9,303,307 $11,229,529 ____________ Source: City Finance Department and City of Ukiah - audited financial statements for fiscal years 2016-17 through 2020-21. Attachment 7 Page 394 of 858 -39- TABLE 11 City of Ukiah General Fund Balance Sheets Fiscal Years 2016-17 through 2020-21 2016-17 2017-18 2018-19 2019-20 2020-21 Assets Cash and investments $1,943,148 $4,183,781 $140,160 $1,176,360 $3,596,165 Restricted cash and investments -- 4,035,436 797,531 780,302 -- Receivables: Taxes 2,019,378 2,133,052 1,801,306 2,641,624 2,898,954 Accounts 13,608 150,830 645,439 260,277 1,663,429 Notes 725 -- 216 61 3,924 Interest 17,033 11,247 34,381 2,856 1,915 Intergovernmental -- -- -- -- -- Grants and subventions -- -- -- 97,421 910,106 Prepaid expenditures 15,901 14,290 216 195,446 207,097 Loans to employees -- -- -- -- -- Due from other funds 935,266 -- 48,772 1,291,737 678,260 Long-term notes receivable -- 825 -- -- -- Advances to other funds 1,115,967 1,778,132 1,590,370 1,262,811 2,013,542 Land held for resale -- -- -- -- -- Due from other agencies -- -- 103,091 -- 121,175 Advance to successor agency -- -- 6,000,000 3,923,857 2,000,000 Total Assets 6,061,026 12,307,593 11,161,482 11,632,752 14,094,567 Deferred Inflow of Resources Unavailable revenues - Grants -- -- 29,017 102,061 910,106 Total Deferred Outflow of Resources -- -- 29,017 102,061 910,106 Liabilities Accounts payable 294,875 5,886,763 874,063 476,943 1,069,402 Accrued payroll 443,915 502,733 500,924 841,918 885,530 Due to other funds -- -- -- -- -- Advances from other funds -- 1,748,176 921,469 908,523 -- Total Liabilities 738,790 8,137,672 2,296,456 2,227,384 1,954,932 Fund Balances Nonspendable 1,131,868 1,793,247 5,514,226 6,673,912 4,224,563 Restricted -- 4,000,000 -- -- -- Committed -- -- -- 194,655 -- Assigned 4,190,368 -- -- -- 186,134 Unassigned -- (1,623,326) 3,321,783 2,434,740 6,818,832 Total Fund Balance 5,322,236 4,169,921 8,836,009 9,303,307 11,229,529 Total Liabilities & Fund Balance $6,061,026 $12,307,593 $11,161,482 $11,632,752 $14,094,567 _____________ Source: City of Ukiah - Audited Financial Statements for fiscal years 2016-17 through 2020-21. Relevant Fiscal Policies The City has adopted a comprehensive set of fiscal policies to provide guidance for all fiscal activities and resource allocation decisions as defined in the Adopted Budget. The policies set forth guidelines for both current activities and long-range planning. In addition, the City Council approved or adopted several other fiscal policies including: • Investment Policy. • Debt Management Policy. Attachment 7 Page 395 of 858 -40- • Reserve Policy The following are certain highlighted aspects of the adopted policies. City Investment Policy. The City invests its funds in accordance with the City’s Investment Policy, in accordance with Section 53600 et seq. of the State Government Code. Idle cash management and investment transactions are the responsibility of the City Manager and City Treasurer. The Investment Policy sets forth the policies and procedures applicable to the investment of City funds and designates eligible investments. The Investment Policy’s stated overarching purpose is to (i) ensure that public funds are invested in such a manner as to comply with state and local laws; (ii) ensure prudent money management; (iii) provide for daily cash flow requirements; and (iv) meet the objectives of the Investment Policy (per California Government Code Section 53600.5) in the following order of priority: 1. Safety of Principal: Safety of principal is the foremost objective of the investment program. Investments of the City shall be undertaken in a manner that seeks to ensure the preservation of capital in the overall portfolio. To attain this objective, the City strives to diversify its investments by investing funds among a variety of securities with independent returns. 2. Liquidity: The City’s investment portfolio will remain sufficiently liquid to enable the City to meet all operating requirements which might be reasonably anticipated. Maturities of investments are selected in anticipation if disbursement needs, thereby obviating the need for forced liquidation or lost interest penalties. 3. Return on Investments: The City’s investment portfolio shall have the objective of attaining a comparative performance measurement or an acceptable rate of return throughout budgetary and economic cycles. These measurements should be commensurate with the City’s investment risk constraints identified in the Investment Policy and the cash flow characteristics of the portfolio. Debt Management Policy. The City’s Debt Management Policy sets forth parameters for issuing debt and managing the City’s debt portfolio and generally sets forth the following: (i) the purposes for which the debt proceeds may be used, (ii) the types of debt that may be issued, (iii) the relationship of the debt to, and integration with, the issuer’s capital improvement program or budget, if applicable, (iv) policy goals related to the City’s planning goals and objectives, and (v) the internal control procedures that the City has implemented, or will implement, to ensure that the proceeds of the proposed debt issuance will be directed to the intended use. This policy will also assist the City in pursuing and maintaining quality credit ratings in addition to providing guidance to decision makers. Reserve Policy. The City’s Reserve Policy provides that the City strive to maintain a fund balance in the General Fund, including the General Fund’s Strategic Reserve Fund, of at least twenty-five percent (25%) of budgeted General Fund operating expenditures. A 25% fund balance is equivalent to approximately three months of operating expenditures. The Reserve Policy’s stated purpose of a 25% minimum fund balance is to meet cash flow requirements, to protect the City’s essential service programs and funding requirements during periods of economic uncertainty, local disasters, other financial hardships or downturns in the local economy, and to provide for unforeseen operating or capital needs. The Operating Reserve contained approximately $7.7 million as of June 30, 2021. Attachment 7 Page 396 of 858 -41- Risk Management. The City is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors and omissions; and natural disasters for which the City participates The City is a member of the Redwood Empire Municipal Insurance Fund (“REMIF”), a public entity pool comprised of fifteen northern California charter and associate member cities. REMIF is organized under a Joint Powers Agreement pursuant to the California Government Code. The purpose of REMIF is to arrange and administer programs of insurance for the pooling of self-insured losses and to purchase excess insurance coverage. The City pays an annual premium to REMIF for its workers’ compensation, general liability and property coverage. The City of Ukiah participates in the following three REMIF programs: General Liability Insurance. Annual premiums are paid by the member cities and are adjusted retrospectively to cover costs. The City of Ukiah self-insures for the first $25,000 of each loss and pays 100 percent of all losses incurred under $25,000. The City does not share or pay for losses of other cities under $5,000, depending on the entity’s deductible amount. Participating cities then share in the next $5,000 to $750,000 per loss occurrence. Specific coverage includes comprehensive and general automotive liability, personal injury, contractual liability, professional liability, and certain other coverage. REMIF is a member of the California Joint Powers Risk Management Authority, which provides REMIF with an additional $39,250,000 liability insurance coverage over and above REMIF retention level of $750,000. Worker’s Compensation. Periodic deposits are paid by member cities and are adjusted retrospectively to cover costs. The City of Ukiah is self-insured for the first $10,000 of each loss and pays 100 percent of all losses incurred under $10,000. The City does not share or pay for losses of other cities under $5,000. Property Insurance. The City participates in REMIF’s property insurance program. The annual deposits paid by participating member cities are based upon deductibility levels and are not subject to retroactive adjustments. The City of Ukiah has a deductible level of $500,000 for high-risk flood zones and $100,000 for all wildfire and property related claims, and a coverage limit of $400,000,000 declared value. Separate internal service funds are maintained by the City for the City’s deductibles and allocated share of pooled costs noted above. The total cash and investments held in these funds at June 30, 2021, was $383,075. See APPENDIX A Note 10 for additional details regarding the City’s pension and other employee benefits, including as relates to Risk Management. Employee Retirement System; CalPERS This caption contains certain information relating to California Public Employees’ Retirement System (“CalPERS”). The information is primarily derived from information produced by CalPERS, its independent accountants and actuaries. The City has not independently verified the information provided by CalPERS and makes no representations and expresses no opinion as to the accuracy of the information provided by CalPERS. The comprehensive annual financial reports of CalPERS are available on its Internet website at www.calpers.ca.gov. The CalPERS website also contains CalPERS’ most recent actuarial valuation reports and other information concerning benefits and other matters. Such information is not incorporated by reference in this Official Statement. None of the Authority, City or Underwriter can guarantee the accuracy of such information. Actuarial assessments are Attachment 7 Page 397 of 858 -42- “forward-looking” statements that reflect the judgment of the fiduciaries of the pension plans, and are based upon a variety of assumptions, one or more of which may not materialize or may be changed in the future. Actuarial assessments will change with the future experience of the pension plans. General Information about the Pension Plans. All qualified permanent and probationary employees are eligible to participate in the Public Agency Cost-Sharing Multiple- Employer Defined Benefit Pension Plan (“Plan”), administered by CalPERS. The Plan’s benefit provisions are established by statute. The Plan is included as a pension trust fund in the CalPERS Comprehensive Annual Financial Report, which is available online at www.calpers.ca.gov. The Plan consists of a miscellaneous pool and a safety pool (referred to as “risk pools”), which are comprised of individual employer miscellaneous and safety rate plans, respectively, including those of the City. The City does not have any rate plans in the miscellaneous risk pool. The City’s employer rate plans in the safety risk pool include the Safety Fire plan (“Fire”), the Safety Police plan (“Police”), the PEPRA Safety Fire plan (“PEPRA Safety Fire”) and the PEPRA Safety Police plan (“PEPRA Police”). PEPRA. On September 12, 2012, the California Governor signed AB 340, a bill that enacted the California Public Employees’ Pension Reform Act of 2012 (“PEPRA”) and that also amended various sections of the California Education and Government Codes, including the County Employees Retirement Law of 1937. Effective January 1, 2013, PEPRA: (i) requires public retirement systems and their participating employers to share equally with employees the normal cost rate for such retirement systems; (ii) prohibits employers from paying employer paid member contributions to such retirement systems for employees hired after January 1, 2013; (iii) establishes a compulsory maximum non safety benefit formula of 2.5% at age 67; (iv) defines final compensation as the highest average annual pensionable compensation earned during a 36 month period; and (v) caps pensionable income at $110,100 ($132,120 for employees not enrolled in Social Security) subject to Consumer Price Index increases. Other provisions reduce the risk of the City incurring additional unfunded liabilities, including prohibiting retroactive benefits increases, generally prohibiting contribution holidays, and prohibiting purchases of additional non- qualified service credit. Benefits Provided. The Plan provides service retirement and disability benefits, annual cost of living adjustments and death benefits to plan members, who must be public employees and beneficiaries. Benefits are based on years of credited service, equal to one year of full-time employment. Classic members and PEPRA Safety members with five years of total service are eligible to retire at age 50 with statutorily reduced benefits. PEPRA Miscellaneous members with five years of total service are eligible to retire at age 52 with statutorily reduced benefits. All members are eligible for non-duty disability benefits after five years of service. The death benefit is the Basic Death Benefit. The cost of living adjustments for each plan are applied as specified by the Public Employees’ Retirement Law. Attachment 7 Page 398 of 858 -43- The provisions and benefits of each Plan that were in effect at June 30, 2021, are summarized as follows: Employer Rate Plans in the Safety Risk Pool Fire Police Hire Date Prior to January 1, 2013 On or after January 1, 1900 Benefit Formula 3.0% @ 55 3.0% @ 50 Benefit Vesting Schedule 5 years of service 5 years of service Benefit Payments Monthly for life Monthly for life Retirement Age 50 50 Monthly Benefits, As a % of Eligible Compensation 2.4% to 3.0% 3.0% Required Employee Contribution Rates 8.987% 8.99% Required Employer Contributions Rates 23.558% 25.540% PEPRA Plans PEPRA Fire PEPRA Police Hire Date On or after January 1, 2013 On or after January 1, 2013 Benefit 2.7% @ 57 2.7% @ 57 Benefit Vesting Schedule 5 years of service 5 years of service Benefit Payments Monthly for life Monthly for life Retirement Age 50 50 Monthly Benefits, As a % of Eligible Compensation 2.0% to 2.7% 2.0% to 2.7% Required Employee Contribution Rates 13.75% 13.75% Required Employer Contributions Rates 13.884% 13.884% Miscellaneous Plan Miscellaneous Hire Date Prior to January 1, 2013 On or after January 1, 2013 Benefit formula 2.70% @ 55 2.00% @ 62 Benefit vesting schedule 5 years’ service 5 years’ service Benefit payments Monthly for life Monthly for life Retirement age 55 62 Monthly benefits, as a % of eligible 2.00% to 2.50% 1.00% to 2.50% Required employee contribution rates 8.00% 7.00% Required employer contribution rates 12.859% 6.750% _____________ Source: City of Ukiah Audit Fiscal Year ended June 30, 2021. Contributions. Section 20814(c) of the California Public Employees’ Retirement Law requires that the employer contribution rates for all public employers be determined on an annual basis by the CalPERS actuary and shall be effective on the July 1 following notice of a change in the rate. Contribution rates for the employer rate plans are determined through the CalPERS’ annual actuarial valuation process. Each employer rate plan’s actuarially determined rate is based on the estimated amount necessary to pay the employer rate plan’s allocated share of the cost of benefits earned by employees during the year, and any unfunded accrued liability. The City of Ukiah is required to contribute the difference between the actuarially determined rate and the contribution rate of employees. For the year ended June 30, 2021 the contributions recognized as part of pension expense for each Plan were $0 for Miscellaneous Risk Pools and $15,338,474 for Safety Risk Plans. Attachment 7 Page 399 of 858 -44- The City is required to contribute at an actuarially determined rate of annual covered payroll, plus a fixed payment of unfunded liability. The actuarially determined rates and amounts for each Pension Plan for the fiscal years ended June 30, 2021 and June 30, 2021, are as follows: CITY’S REQUIRED EMPLOYER CONTRIBUTION RATES & PAYMENTS Fiscal Year 2020-21 Fiscal Year 2021-22 Pension Plan Employer Normal Cost Rate Employer Normal Cost Payment Employer Payment of Unfunded Liability Employer Normal Cost Rate Employer Normal Cost Payment Employer Payment of Unfunded Liability Miscellaneous 12.764% $1,247,475 $2,498,680 12.180% $1,291,806 $2,816,117 Safety (Fire) 23.558 316,961 558,118 23.620 323,254 637,213 Safety (Police) 25.540 487,220 1,020,305 25.590 491,469 1,163,139 Safety (Fire) - PEPRA 13.884 8,635 687 13.980 80,836 2,125 Safety (Police) - PEPRA 13.884 131,697 8,293 13.980 163,289 12,270 Totals $2,191,988 $4,086,083 $2,350,654 $4,630,864 Source: CalPERS Annual Valuation Report as of June 30, 2020. Funding History. The funding history for the Miscellaneous Pension Plan, the Safety (Fire) Pension Plan and the Safety (Police) Pension Plan is shown in the tables below, listing for each plan the actuarial accrued liability, share of the pool’s market value of assets, share of the pool’s unfunded liability, funded ratio, and annual covered payroll. MISCELLANEOUS PLAN Valuation Date Accrued Liability (AL) Market Value of Assets (MVA) Unfunded Liability Funded Ratio Annual Covered Payroll 06/30/18 $93,050,082 $56,829,079 $36,221,003 61.1% $9,009,487 06/30/19 97,517,888 59,864,803 37,653,085 61.4 9,776,975 06/30/20 101,857,734 62,156,109 39,701,625 61.0 10,654,408 Source: CalPERS Annual Valuation Report as of June 30, 2020. SAFETY PLAN (FIRE) PLAN Valuation Date Accrued Liability (AL) Market Value of Assets (MVA) Unfunded Liability Funded Ratio Annual Covered Payroll 06/30/18 $22,124,489 $15,535,281 $6,589,208 70.2% $1,240,287 06/30/19 22,910,724 16,095,947 6,814,777 70.3 1,261,589 06/30/20 24,589,568 17,315,683 7,273,885 70.4 932,777 Source: CalPERS Annual Valuation Report as of June 30, 2020. SAFETY PLAN (POLICE) PLAN Valuation Date Accrued Liability (AL) Market Value of Assets (MVA) Unfunded Liability Funded Ratio Annual Covered Payroll 06/30/18 $42,141,491 $30,036,825 $12,104,666 71.3% $1,758,566 06/30/19 42,902,629 30,377,909 12,524,720 70.8 1,770,437 06/30/20 43,807,080 30,477,910 13,329,170 69.6 1,473,487 Source: CalPERS Annual Valuation Report as of June 30, 2020. Attachment 7 Page 400 of 858 -45- PEPRA SAFETY PLAN (FIRE) PLAN Valuation Date Accrued Liability (AL) Market Value of Assets (MVA) Unfunded Liability Funded Ratio Annual Covered Payroll 06/30/18 $19,545 $18,289 $1,256 93.6% $57,335 06/30/19 82,588 78,983 3,605 95.6 340,912 06/30/20 211,540 202,278 9,262 95.6 545,518 Source: CalPERS Annual Valuation Report as of June 30, 2020. PEPRA SAFETY PLAN (POLICE) PLAN Valuation Date Accrued Liability (AL) Market Value of Assets (MVA) Unfunded Liability Funded Ratio Annual Covered Payroll 06/30/18 $711,686 $648,252 $63,434 91.1% $874,409 06/30/19 871,071 771,847 99,224 88.6 834,929 06/30/20 1,185,772 1,046,399 139,373 88.2 1,101,945 Source: CalPERS Annual Valuation Report as of June 30, 2020. Payable to the Pension Plan. At June 30, 2021, the City reported a payable of $ -0- for the outstanding amount of contributions to the pension plan required for the year ended June 30, 2021. For the year ended June 30, 2021, the City recognized a total pension expense for both plans was $3,551,524 for Safety and $5,103,809 for Misc.. See Note 11 to the City’s audited financial statements for the fiscal year ending June 30, 2021 attached hereto as Appendix A for more information. Actions Taken by CalPERS Related to Discount Rate and Other Assumptions. In 2013, the CalPERS’ Board of Administration (the “Board of Administration”) approved a recommendation to change the CalPERS amortization and smoothing policies. In 2018, the Board of Administration voted to shorten the period over which CalPERS will amortize actuarial gains and losses from 30 years to 20 years for new pension liabilities. In 2014, the Board of Administration approved new demographic actuarial assumptions based on a 2013 study of recent experience. The largest impact, applying to all benefit groups, is a new 20-year mortality projection reflecting longer life expectancies and that longevity will continue to increase. Because retirement benefits will be paid out for more years, the cost of those benefits will increase as a result. In 2015, the Board of Administration adopted a funding risk mitigation policy intended to incrementally lower its discount rate – its assumed rate of investment return – in years of good investment returns, help pay down the pension fund’s unfunded liability, and provide greater predictability and less volatility in contribution rates for employers. In 2016, the Board of Administration voted to lower its discount rate for local agencies per the following schedule: Fiscal Year Discount Rate 2018-19 7.375% 2019-20 7.250 2020-21 7.000 Attachment 7 Page 401 of 858 -46- On July 12, 2021, CalPERS announced it had achieved a preliminary investment return of 21.3% for the 12-month period ending June 30, 2021. Under the Funding Risk Mitigation Policy approved by the CalPERS Board of Administration in 2015, the double-digit return will trigger a reduction in the discount rate from 7.00% to 6.80%. The CalPERS Board may further reduce the discount rate in the near future. The final discount rate (and other assumptions) will be determined at the Asset Liability Management meeting that occurs in November 2021. CalPERS may lower the discount rate beyond the trigger set forth in the Funding Risk Mitigation Policy or make other changes. Lowering the discount rate means employers that contract with CalPERS to administer their pension plans will see increases in their normal costs and unfunded actuarial liabilities. Active members hired after January 1, 2013, under PEPRA will also see their contribution rates rise. PEPRA included certain other provisions to try to minimize pension costs for covered employees. The three-year reduction of the discount rate will result in average employer rate increases of about 1 percent to 3 percent of normal cost as a percent of payroll for most miscellaneous retirement plans, and a 2 percent to 5 percent increase for most safety plans. Additionally, many CalPERS employers will see a 30 to 40 percent increase in their current unfunded accrued liability payments. These payments are made to amortize unfunded liabilities over 20 years to bring the pension fund to a fully funded status over the long-term. Fiscal Year 2020-21 investment returns and changes to the discount rate and other assumptions, including demographic changes, will be reported on the June 30, 2021 CalPERS actuarial reports. These changes, including the newly determined discount rate, will be reflected in contribution levels for cities, counties, and special districts in Fiscal Year 2023-24. Asset Volatility Ratio (AVR). Plans that have higher asset-to-payroll ratios experience more volatile employer contributions (as a percentage of payroll) due to investment return. For example, a plan with an asset-to-payroll ratio of 8 may experience twice the contribution volatility due to investment return volatility, than a plan with an asset-to-payroll ratio of 4. Shown below is the asset volatility ratio for the Miscellaneous Plan, the Safety Plan (Fire), the Safety Plan (Police), the PEPRA Safety (Fire) and the PEPRA Safety (Police) plan which a measure of each plan’s current contribution volatility. It should be noted that this ratio is a measure of the current situation. It increases over time but generally tends to stabilize as the plan matures. Liability Volatility Ratio (LVR). Plans that have higher liability-to-payroll ratios experience more volatile employer contributions (as a percentage of payroll) due to investment return and changes in liability. For example, a plan with a liability-to-payroll ratio of 8 is expected to have twice the contribution volatility of a plan with a liability-to-payroll ratio of 4. The liability volatility ratio is also shown in the table below. It should be noted that this ratio indicates a longer- term potential for contribution volatility. The AVR, described above, will tend to move closer to the LVR as the plan matures. Since the liability volatility ratio is a long- term measure, it is shown below at the current discount rate (7 percent) as well as the discount rate the Board has adopted to determine the contribution requirement in the June 30, 2020 actuarial valuation (7.00 percent). Rate Volatility Miscellaneous Plan* Safety Plan (Fire)* Safety Plan (Police)* PEPRA Safety Plan (Police)* PEPRA Safety Plan (Fire)* 1. Market Value of Assets $62,085,040 $17,315,683 $30,477,910 $1,046,399 $202,278 2. Payroll 10,654,408 932,777 1,473,487 1,101,945 545,518 3. Asset Volatility Ratio (AVR) [(1) / (2)] 5.8 18.6 20.7 0.9 0.4 4. Accrued Liability $101,857,734 $24,589,568 $43,807,080 $1,185,772 $211,540 5. Liability Volatility Ratio (LVR) [(4) / (2)] 9.6 26.4 29.7 1.1 0.4 Attachment 7 Page 402 of 858 -47- * As of June 30, 2020 Source: CalPERS Annual Valuation Report as of June 30, 2020. Deferred Compensation Plan. City employees may defer a portion of their compensation under a City sponsored Deferred Compensation Plan created in accordance with Internal Revenue Code Section 457. Under this plan, participants are not taxed on the deferred portion of their compensation until distributed to them; distributions may be made only at termination, retirement, death or in an emergency defined by the plan. The laws governing deferred compensation plan assets require plan assets to be held by a trust for the exclusive benefit of plan participants and their beneficiaries. Since the assets held under these plans are not the City’s property and are not subject to City control, they are excluded from the City’s financial statements. General Fund Long-Term Indebtedness The following is a summary of changes in long-term liabilities for the year ended June 30, 2021. 2017 Fire Engine Lease (direct borrowing). In October 2017, the City entered a capital lease with Umpqua Bank for the purchase of two Type-1 fire engine totaling $1,125,731. Principal and interest payments are due semi-annually on May 1 and November 1 of each year with an interest rate of 2.45 percent. Lease payments are made by the General Fund. The total combined amount of accumulated depreciation on both fire engines is $296,419. 2017 Computer Equipment Lease (direct borrowing). In July 2017, the City entered into a capital lease with IBM Credit LLC for the purchase of computer equipment and software totaling $285,663. Principal is paid annually on September 1 and interest payments are due monthly with interest rates ranging from 2.15 percent to 2.37 percent. Lease payments are made primarily by the Information Technology internal service fund. The total combined amount of accumulated depreciation on this computer equipment is $171,156. 2017 I-Bank Financing Lease (direct borrowing). In August 2017, the City entered into an agreement for $4,000,000 with the California Infrastructure and Economic Development Bank (I- Bank) to finance roadway and other right-of-way improvements related to the Redwood Business Park. Principal is paid annually commencing on August 1,2018, and interest payments are made semi-annually on August 1 and February 1 at an interest rate of 3.30 percent. Lease payments are made primarily by the General Fund. The total combined amount of accumulated depreciation on the roadway improvements is $240,000. 2020 Fire Brush Truck Lease (direct borrowing). In February 2020, the City entered a capital lease with Umpqua Bank for the purchase of one Skeeter fire brush truck totaling $227,606. Principal and interest payments are due semi-annually on March 1 and September 1 of each year with an interest rate of 2.8 percent. Lease payments are made by the General Fund. The total combined amount of accumulated depreciation on this truck is $11,380. 2020 Self Contained Breathing Apparatus Lease (direct borrowing). In November 2020, the City entered an equipment lease with Umpqua Bank for the purchase of one self contained breathing apparatus system totaling $343,762.85. Principal and interest payments are due on June 1 and December 1 of each year with an interest rate of 2.39 percent. Lease payments are made by both the General Fund and the Ukiah Valley Fire District at an even 50 percent split. Series 2020A Lease Revenue Bonds (Community Facilities Improvement Project). Dated December 1, 2020 the original amount of the obligation was $2,530,000 and is secured with a Attachment 7 Page 403 of 858 -48- pledge consisting primarily of base rental payments to be made by the City as rental for certain City-owned property. The obligation principal is payable in annual installments beginning April 1, 2021 ranging from $90,0000 to $175,000 through year 2040. Interest is payable semi-annually on April 1 and October 1 of each year, commencing April 1, 2021, with an interest rate ranging from 3.00 percent to 4.00 percent. The Series 2020A Lease Revenue Bonds were issued to reimburse the City for the cost to purchase the Bank of America building, and to pay the costs associated with renovating the new customer service center and roof replacement project for the museum. Series 2020B Taxable Lease Revenue Bonds (CalPERS Prepayment Project). Dated December 1, 2020 the original amount of the obligation was $49,875,000 and is secured with a pledge consisting primarily of base rental payments to be made by the City as rental for certain City-owned property. This obligation is shared with business-type funds, with the governmental fund’s share being 65 percent. The obligation principal is payable in annual installments beginning April 1, 2022 ranging from $705,000 to $3,015,000 through year 2049. Interest is payable semi-annually on April 1 and October 1 of each year, commencing October 1, 2021, with an interest rate ranging from 1.37 percent to 4.263 percent. The Series 2020B Taxable Lease Revenue Bonds were issued to refinance a portion of the UAL of the City’s Miscellaneous, Safety Fire, and Safety Police pension plans with CalPERS. [Remainder of Page Intentionally Left Blank] Attachment 7 Page 404 of 858 -49- OVERLAPPING DEBT OF THE CITY Direct and Overlapping Bonded Debt Set forth on the following page is a direct and overlapping debt report for the City (the “Debt Report”) prepared by California Municipal Statistics, Inc. and dated as of November 1, 2021. The Debt Report is included for general information purposes only. The City has not reviewed the Debt Report for completeness or accuracy and makes no representations in connection therewith. The Debt Report generally includes long term obligations sold in the public credit markets by public agencies whose boundaries overlap the boundaries of the City in whole or in part. Such long-term obligations generally are not payable from revenues of the City (except as indicated) nor are they necessarily obligations secured by land within the City. In many cases long-term obligations issued by a public agency are payable from the general fund or other revenues of such public agency. The total 2020-21 assessed valuation of $1,651,248,896 reflected in the Debt Report is provided by California Municipal Statistics, Inc. Neither the City, the Authority nor the Underwriter has verified this information. TABLE 12 City of Ukiah Direct and Overlapping Debt Statement (as of November 1, 2021) 2021-22 Assessed Valuation: $1,651,248,896 OVERLAPPING TAX AND ASSESSMENT DEBT: % Applicable Debt 11/1/21 Mendocino Lake Community College District 13.466% $8,121,272 Ukiah Unified School District 34.004 20,815,424 TOTAL DIRECT AND OVERLAPPING TAX AND ASSESSMENT DEBT $28,936,696 DIRECT AND OVERLAPPING GENERAL FUND DEBT: Mendocino County Certificates of Participation 12.740% $1,874,054 Mendocino County Pension Obligation Bonds 12.740 4,320,771 Ukiah Unified School District General Fund Obligations 34.004 2,262,386 City of Ukiah General Fund Obligations 100.000 55,918,515(1) TOTAL DIRECT AND OVERLAPPING GENERAL FUND DEBT $64,375,726 OVERLAPPING TAX INCREMENT DEBT (Successor Agency): 100.000% $4,863,469 COMBINED TOTAL DEBT $98,175,891 (2) Ratios to 2021-22 Assessed Valuation: Total Overlapping Tax and Assessment Debt ........................ 1.75% Combined Direct Debt ($55,918,515) ................................... 3.39% Combined Total Debt .............................................................. 5.95% Ratios to Redevelopment Successor Agency Incremental Valuation ($758,918,515): Total Overlapping Tax Increment Debt ................................... 0.64% ____________________________________ (1) Excludes issue to be sold. (2) Excludes tax and revenue anticipation notes, enterprise revenue, mortgage revenue and non-bonded capital lease obligations. Source: California Municipal Statistics, Inc. Attachment 7 Page 405 of 858 -50- CONSTITUTIONAL AND STATUTORY LIMITATIONS ON TAXES AND APPROPRIATIONS The constitutional and statutory provisions discussed in this section have the potential to affect the ability of the City to levy taxes and spend tax proceeds for operating and other purposes. Article XIIIA of the State Constitution Section 1(a) of Article XIIIA of the State Constitution limits the maximum ad valorem tax on real property to 1% of full cash value (as defined in Section 2 of Article XIIIA), to be collected by counties and apportioned according to law. Section 1(b) of Article XIIIA provides that the 1% limitation does not apply to ad valorem taxes to pay interest or redemption charges on (1) indebtedness approved by the voters prior to June 1, 1978 or (2) any bonded indebtedness for the acquisition or improvement of real property approved on or after June 1, 1978, by two thirds of the votes cast by the voters voting on the Proposition. Section 2 of Article XIIIA defines “full cash value” to mean “the county assessor’s valuation of real property as shown on the 1975–76 tax bill under ‘full cash value’ or, thereafter, the appraised value of real property when purchased, newly constructed, or a change in ownership has occurred after the 1975 assessment.” The full cash value may be adjusted annually to reflect inflation at a rate not to exceed 2% per year, or to reflect a reduction in the consumer price index or comparable data for the area under taxing jurisdiction or reduced in the event of declining property value caused by substantial damage, destruction or other factors. Legislation enacted by the State Legislature to implement Article XIIIA provides that notwithstanding any other law, local agencies may not levy any ad valorem property tax except to pay debt service on indebtedness approved by the voters as described above. The voters of the State subsequently approved various measures that further amended Article XIIIA. One such amendment generally provides that the purchase or transfer of (i) real property between spouses or (ii) the principal residence and the first $1,000,000 of the full cash value of other real property between parents and children, does not constitute a “purchase” or “change of ownership” triggering reassessment under Article XIIIA. This amendment could serve to reduce the property-tax revenues of the City. Other amendments permitted the State Legislature to allow persons over 55 or “severely disabled homeowners” who sell their residences and buy or build another of equal or lesser value within two years in the same county, to transfer the old residence’s assessed value to the new residence. In the November 1990 election, the voters approved the amendment of Article XIIIA to permit the State Legislature to exclude from the definition of “newly constructed” the construction or installation of seismic retrofitting improvements or improvements utilizing earthquake hazard mitigation technologies constructed or installed in existing buildings after November 6, 1990. Article XIIIA has also been amended to permit reduction of the “full cash value” base in the event of declining property values caused by damage, destruction or other factors, provided that there would be no increase in the “full cash value” base in the event of reconstruction of property damaged or destroyed in a disaster. Article XIIIB of the State Constitution Article XIIIB of the State Constitution limits the annual appropriations of the State and of any city, county, school district, special district, authority or other political subdivision of the State to the appropriations limit for the prior Fiscal Year, as adjusted for changes in the cost of living, population and services for which the fiscal responsibility is shifted to or from the governmental Attachment 7 Page 406 of 858 -51- entity. The “base year” for establishing this appropriations limit is the 1978–79 Fiscal Year. The appropriations limit may also be adjusted in emergency circumstances, subject to limitations. Appropriations of an entity of local government subject to Article XIIIB generally include authorizations to expend during a Fiscal Year the “proceeds of taxes” levied by or for the entity, exclusive of certain State subventions, refunds of taxes, and benefit payments from retirement, unemployment insurance and disability insurance funds. “Proceeds of taxes” include but are not limited to, all tax revenues, certain State subventions received by the local governmental entity and the proceeds to the local governmental entity from (1) regulatory licenses, user charges, and user fees (to the extent that such proceeds exceed the cost of providing the service or regulation) and (2) the investment of tax revenues. Article XIIIB provides that if a governmental entity’s revenues in any year exceed the amounts permitted to be spent, the excess must be returned by revising tax rates or fee schedules over the subsequent two fiscal years. Article XIIIB does not limit the appropriation of moneys to pay debt service on indebtedness existing or authorized as of January 1, 1979, or for bonded indebtedness approved thereafter by a vote of the electors of the issuing entity at an election held for that purpose, or appropriations for certain other limited purposes. Furthermore, Article XIIIB was amended in 1990 to exclude from the appropriations limit “all qualified capital outlay projects, as defined by the Legislature” from proceeds of taxes. The Legislature has defined “qualified capital outlay project” to mean a fixed asset (including land and construction) with a useful life of 10 or more years and a value which equals or exceeds $100,000. As a result of this amendment, the appropriations to pay the lease payments on the City’s long term General Fund lease obligations are generally excluded from the City’s appropriations limit. The City has never exceeded its appropriations limit. Articles XIIIC and XIIID of the State Constitution General. On November 5, 1996, the voters of the State approved Proposition 218, known as the “Right to Vote on Taxes Act.” Proposition 218 adds Articles XIIIC and XIIID to the California Constitution and contains a number of interrelated provisions affecting the ability of the City to levy and collect both existing and future taxes, assessments, fees and charges. On November 2, 2010, California voters approved Proposition 26, entitled the “Supermajority Vote to Pass New Taxes and Fees Act.” Section 1 of Proposition 26 declares that Proposition 26 is intended to limit the ability of the State Legislature and local government to circumvent existing restrictions on increasing taxes by defining the new or expanded taxes as “fees.” Proposition 26 amended Articles XIIIA and XIIIC of the State Constitution. The amendments to Article XIIIA limit the ability of the State Legislature to impose higher taxes (as defined in Proposition 26) without a two-thirds vote of the Legislature. The amendments to Article XIIIC define “taxes” that are subject to voter approval as “any levy, charge, or exaction of any kind imposed by a local government,” with certain exceptions. Taxes. Article XIIIC requires that all new local taxes be submitted to the electorate before they become effective. Taxes for general governmental purposes of the City (“general taxes”) require a majority vote; taxes for specific purposes (“special taxes”), even if deposited in the City’s General Fund, require a two-thirds vote. Property-Related Fees and Charges. Article XIIID also adds several provisions making it generally more difficult for local agencies to levy and maintain property-related fees, charges, and assessments for municipal services and programs. These provisions include, among other Attachment 7 Page 407 of 858 -52- things, (i) a prohibition against assessments which exceed the reasonable cost of the proportional special benefit conferred on a parcel, (ii) a requirement that assessments must confer a “special benefit,” as defined in Article XIIID, over and above any general benefits conferred, (iii) a majority protest procedure for assessments which involves the mailing of notice and a ballot to the record owner of each affected parcel, a public hearing and the tabulation of ballots weighted according to the proportional financial obligation of the affected party, and (iv) a prohibition against fees and charges which are used for general governmental services, including police, fire or library services, where the service is available to the public at large in substantially the same manner as it is to property owners. Reduction or Repeal of Taxes, Assessments, Fees and Charges. Article XIIIC also removes limitations on the initiative power in matters of reducing or repealing local taxes, assessments, fees or charges. No assurance can be given that the voters of the City will not, in the future, approve an initiative or initiatives which reduce or repeal local taxes, assessments, fees or charges currently comprising a substantial part of the City’s General Fund. If such repeal or reduction occurs, the City’s ability to pay debt service on the Bonds could be adversely affected. Burden of Proof. Article XIIIC provides that local government “bears the burden of proving by a preponderance of the evidence that a levy, charge, or other exaction is not a tax, that the amount is no more than necessary to cover the reasonable costs of the governmental activity, and that the manner in which those costs are allocated to a payor bear a fair or reasonable relationship to the payor’s burdens on, or benefits received from, the governmental activity.” Similarly, Article XIIID provides that in “any legal action contesting the validity of a fee or charge, the burden shall be on the agency to demonstrate compliance” with Article XIIID. Judicial Interpretation of Proposition 218. The interpretation and application of Articles XIIIC and XIIID will ultimately be determined by the courts, and it is not possible at this time to predict with certainty the outcome of such determination. Impact on City’s General Fund. The City does not believe that any material source of General Fund revenue is subject to challenge under Proposition 218 or Proposition 26. The approval requirements of Articles XIIIC and XIIID reduce the flexibility of the City to raise revenues for the General Fund, and no assurance can be given that the City will be able to impose, extend or increase the taxes, fees, charges or taxes in the future that it may need to meet increased expenditure needs. Proposition 1A; Proposition 22 Proposition 1A. Proposition 1A, proposed by the Legislature in connection with the State’s Fiscal Year 2004-05 Budget, approved by the voters in November 2004 and generally effective in Fiscal Year 2006-07, provided that the State may not reduce any local sales tax rate, limit existing local government authority to levy a sales tax rate or change the allocation of local sales tax revenues, subject to certain exceptions. Proposition 1A generally prohibited the State from shifting to schools or community colleges any share of property tax revenues allocated to local governments for any Fiscal Year, as set forth under the laws in effect as of November 3, 2004. Any change in the allocation of property tax revenues among local governments within a county had to be approved by two-thirds of both houses of the Legislature. Proposition 22. Proposition 22, entitled “The Local Taxpayer, Public Safety and Transportation Protection Act,” was approved by the voters of the State in November 2010. Attachment 7 Page 408 of 858 -53- Proposition 22 eliminates or reduces the State’s authority to (i) temporarily shift property taxes from cities, counties and special districts to schools, (ii) use vehicle license fee revenues to reimburse local governments for State-mandated costs (the State will have to use other revenues to reimburse local governments), (iii) redirect property tax increment from redevelopment agencies to any other local government, (iv) use State fuel tax revenues to pay debt service on State transportation bonds, or (v) borrow or change the distribution of State fuel tax revenues. Unitary Property AB 454 (Chapter 921, Statutes of 1986) provides that revenues derived from most utility property assessed by the State Board of Equalization (“Unitary Property”), commencing with the 1988–89 Fiscal Year, are allocated as follows: (i) each jurisdiction will receive up to 102% of its prior year State–assessed revenue; and (ii) if county–wide revenues generated from Unitary Property are less than the previous year’s revenues or greater than 102% of the previous year’s revenues, each jurisdiction will share the burden of the shortfall or benefit of the excess revenues by a specified formula. This provision applies to all Unitary Property except railroads, whose valuation will continue to be allocated to individual tax rate areas. The provisions of AB 454 do not constitute an elimination of the assessment of any State– assessed properties nor a revision of the methods of assessing utilities by the State Board of Equalization. Generally, AB 454 allows valuation growth or decline of Unitary Property to be shared by all jurisdictions in a county. Possible Future Initiatives Article XIIIA, Article XIIIB and Propositions 218, 26, IA and 22 were each adopted as measures that qualified for the ballot pursuant to the State’s initiative process. From time to time, other initiative measures could be adopted, further affecting the City’s revenues or its ability to expend revenues. BOND OWNERS’ RISKS The following describes certain special considerations and risk factors affecting the payment of and security for the Bonds. The following discussion is not meant to be an exhaustive list of the risks associated with the purchase of any Bonds and does not necessarily reflect the relative importance of the various risks. Potential investors in the Bonds are advised to consider the following special factors along with all other information in this Official Statement in evaluating the Bonds. There can be no assurance that other considerations will not materialize in the future. No Pledge of Taxes General. The obligation of the City to pay the Lease Payments and Additional Rental Payments does not constitute an obligation of the City for which the City is obligated to levy or pledge any form of taxation or for which the City has levied or pledged any form of taxation. The obligation of the City to pay Lease Payments and Additional Rental Payments does not constitute a debt or indebtedness of the City, the State of California or any of its political subdivisions within the meaning of any constitutional or statutory debt limitation or restriction. The City is currently liable on other obligations payable from general revenues, which are described above under “CITY FINANCIAL INFORMATION – Long-Term Obligations Payable Out of General Fund.” Attachment 7 Page 409 of 858 -54- Limitations on Taxes and Fees. Certain taxes, assessments, fees and charges presently imposed by the City could be subject to the voter approval requirements of Article XIIIC and Article XIIID of the State Constitution. Based upon the outcome of an election by the voters, such fees, charges, assessments and taxes might no longer be permitted to be imposed, or may be reduced or eliminated and new taxes, assessments fees and charges may not be approved. The City has assessed the potential impact on its financial condition of the provisions of Article XIIIC and Article XIIID of the State Constitution respecting the imposition and increase of taxes, fees, charges and assessments and does not believe that an election by the voters to reduce or eliminate the imposition of certain existing fees, charges, assessments and taxes would substantially affect its financial condition. However, the City believes that if the initiative power was exercised so that all local taxes, assessments, fees and charges that may be subject to Article XIIIC and Article XIIID of the State Constitution are eliminated or substantially reduced, the financial condition of the City, including its General Fund, could be materially adversely affected. Although the City does not currently anticipate that the provisions of Article XIIIC and Article XIIID of the State Constitution would adversely affect its ability to pay Lease Payments and its other obligations payable from the General Fund, no assurance can be given regarding the ultimate interpretation or effect of Article XIIIC and Article XIIID of the State Constitution on the City’s finances. See “CONSTITUTIONAL AND STATUTORY LIMITATIONS ON TAXES AND APPROPRIATIONS.” Abatement In the event of loss or substantial interference in the use and possession by the City of all or any portion of the Leased Property caused by material damage, title defect, destruction to or condemnation of the Leased Property, Lease Payments will be subject to abatement. See “SECURITY FOR THE BONDS – Abatement” herein. In the event that such component of the Leased Property, if damaged or destroyed by an insured casualty, could not be replaced during the period of in which proceeds of rental interruption insurance, if any, will be available in lieu of Lease Payments, or in the event that casualty insurance proceeds or condemnation proceeds are insufficient to provide for complete repair or replacement of such component of the Leased Property or prepayment of the Bonds, there could be insufficient funds to make payments to Owners in full. It is not always possible to predict the circumstances under which abatement of rental may occur. In addition, there is no statute, case or other law specifying how such an abatement of rental should be measured. For example, it is not clear whether fair rental value is established as of commencement of the lease or at the time of the abatement. If the latter, it may be that the value of the Leased Property is substantially higher or lower than its value at the time of issuance of the Bonds. Abatement, therefore, could have an uncertain and material adverse effect on the security for and payment of the Bonds. If damage, destruction, title defect or eminent domain proceedings with respect to the Leased Property results in abatement of the Lease Payments related to such Leased Property and if such abated Lease Payments, if any, together with moneys from rental interruption or use and occupancy insurance, if any, (in the event of any insured loss due to damage or destruction), and eminent domain proceeds, if any, are insufficient to make all payments of principal and interest with respect to the Bonds during the period that the Leased Property is being replaced, repaired or reconstructed, then all or a portion of such payments of principal and interest may not be made. Reduction in Lease Payments due to abatement as provided in the Lease does not constitute a default thereunder, and no remedy is available to the Bond Owners under the Lease or the Indenture for nonpayment under such circumstances. See APPENDIX C – “SUMMARY OF PRINCIPAL LEGAL DOCUMENTS – The Lease – Abatement of Rental.” Attachment 7 Page 410 of 858 -55- Limited Recourse on Default; No Right to Repossess; No Acceleration of Lease Payments Failure by the City to make Lease Payments, or failure to pay Additional Rental Payments or to observe and perform any other terms, covenants or conditions contained in the Lease or in the Indenture for a period of 30 days after written notice of such failure and request that it be remedied has been given to the City by the Authority or the Trustee, constitute Events of Default under the Lease. Such events permit the Trustee or the Authority to pursue any and all remedies available. However, notwithstanding anything in the Lease or in the Indenture to the contrary, there is no right under any circumstances to accelerate the Lease Payments or otherwise declare any Lease Payments that are not then in default to be immediately due and payable, nor do the Authority or the Trustee have any right to repossess or relet the Leased Property. Following an event of default, the Authority or the Trustee may elect either to terminate the Lease and seek to collect damages from the City or to maintain the Lease in effect and seek to collect the Lease Payments as they become due. See “APPENDIX C – SUMMARY OF PRINCIPAL LEGAL DOCUMENTS – The Lease” herein. In the event of a default, there is no remedy of acceleration of the total Lease Payments due over the term of the Lease and neither the Authority nor the Trustee are empowered to sell or relet the Leased Property and use the proceeds of such sale or reletting to redeem the Bonds or pay debt service with respect thereto. The City will be liable only for Lease Payments on an annual basis and, in the event of a default, the Authority or Trustee would be required to seek a separate judgment each year for that year’s defaulted Lease Payments. Any such suit for money damages would be subject to limitations on legal remedies against municipalities in California, including a limitation on enforcement of judgments against funds of a Fiscal Year other than the Fiscal Year in which the Lease Payments were due and against funds needed to serve the public welfare and interest. Additional Obligations of the City General. The City is permitted to enter into other obligations which constitute additional charges against its revenues without the consent of Owners of the Bonds, and may in the future be subject to liabilities payable from the general fund (some of which are described below). To the extent that additional obligations are incurred by (or imposed upon) the City, the funds available to pay Lease Payments may be decreased. The Lease Payments and other payments due under the Lease (including payment of costs of repair and maintenance of the Leased Property, taxes and other governmental charges levied against the Leased Property) are payable from funds lawfully available to the City. If the amounts that the City is obligated to pay in a fiscal year exceed the City’s revenues for such year, the City may choose to make some payments rather than making other payments, including Lease Payments and Additional Rental Payments, based on the perceived needs of the City. The same result could occur if, because of California Constitutional limits on expenditures, the City is not permitted to appropriate and spend all of its available revenues or is required to expend available revenues to preserve the public health, safety and welfare. Litigation. The City is subject to litigation arising in the normal course of business. See “LITIGATION.” Attachment 7 Page 411 of 858 -56- CalPERS Obligations. Many cities and other local agencies in the State have been faced with increased payments due to CalPERS in recent years. The City, like many other cities and local agencies in the State, is responsible for payments to CalPERS for its share of employee pension costs. Amounts owed to CalPERS for pension costs have increased in recent years and are expected to continue to increase, as CalPERS implements changes to its discount rate and other methodologies for calculating pension costs. See “THE CITY – Pension Plans” for additional information on CalPERS. Default Whenever any event of default referred to in the Lease happens and continues, the Trustee (as assignee of the Authority) is authorized under the terms of the Lease to exercise any and all remedies available under law or granted under the Lease. See “APPENDIX C – SUMMARY OF PRINCIPAL LEGAL DOCUMENTS” for a detailed description of available remedies in the case of a default under the Lease. If a default occurs, there is no remedy of acceleration of the total Lease Payments due over the term of the Lease. The Trustee is not empowered to sell the Leased Property and use the proceeds of such sale to prepay the Bonds or pay debt service on the Bonds. The City will be liable only for Lease Payments on an annual basis and, in the event of a default, the Trustee would be required to seek a separate judgment each year for that year’s defaulted Lease Payments. Any such suit for money damages would be subject to limitations on legal remedies against municipalities in the State, including a limitation on enforcement of judgments against funds of a fiscal year other than the fiscal year in which the Lease Payments were due and against funds needed to serve the public welfare and interest. Abatement Under certain circumstances related to damage, destruction, condemnation or title defects which cause a substantial interference with the use and possession of the Leased Property, the City’s obligation to make Lease Payments will be subject to full or partial abatement and could result in the Trustee having inadequate funds to pay the principal and interest on the Bonds as and when due. See “SECURITY FOR THE BONDS – Abatement” and “APPENDIX C – SUMMARY OF PRINCIPAL LEGAL DOCUMENTS.” Although the City is required under the Lease to maintain property and liability insurance with respect to the Leased Property, the required insurance coverage is subject to certain conditions and restrictions. See “SECURITY FOR THE BONDS – Property Insurance.” [[[The City is not required to maintain rental interruption insurance to thereby generate available moneys to make debt service payments on the Bonds during any period of abatement.]]] Sales Taxes Sales tax revenues are typically the biggest source of revenue to the City, behind property taxes. Sales tax revenues are based upon the gross receipts of retail sales of tangible goods and products by retailers with taxable transactions in the City, which could be impacted by a variety of factors. Attachment 7 Page 412 of 858 -57- For example, before final maturity of the Bonds, the City may enter into an economic recession. In times of economic recession, the gross receipts of retailers often decline, and such a decline would cause the sales tax revenues received by the City to also decline. In addition, changes or amendments in the laws applicable to the City’s receipt of sales tax revenues, whether implemented by State legislative action or voter initiative, could have an adverse effect on sales tax revenues received by the City. For example, many categories of transactions are exempt from the statewide sales tax, and additional categories could be added in the future. Currently, most sales of food products for human consumption are exempt; this exemption, however, does not apply to liquor or to restaurant meals. The rate of sales tax levied on taxable transactions in the City or the fee charged by the CDTFA for administering the City’s sales tax could also be changed. Property Taxes Property taxes are a significant source of General Fund revenue to the City. Certain risks associated with property tax revenues follow. Levy and Collection. The City does not have any independent power to levy and collect property taxes. Any reduction in the tax rate or the implementation of any constitutional or legislative property tax decrease could reduce the City’s property tax revenues, and accordingly, could have an adverse impact on the ability of the City to make Lease Payments. Likewise, delinquencies in the payment of property taxes could have an adverse effect on the City’s ability to pay principal of and interest on the Bonds when due. Reduction in Inflationary Rate. Article XIIIA of the California Constitution provides that the full cash value base of real property used in determining assessed value may be adjusted from year to year to reflect the inflationary rate, not to exceed a 2% increase for any given year, or may be reduced to reflect a reduction in the consumer price index or comparable local data. See “CONSTITUTIONAL AND STATUTORY LIMITATIONS ON TAXES AND APPROPRIATIONS.” Such measure is computed on a calendar year basis. Because Article XIIIA limits inflationary assessed value adjustments to the lesser of the actual inflationary rate or 2%, there have been years in which the assessed values were adjusted by actual inflationary rates, which were less than 2%. Since Article XIIIA was approved, the annual adjustment for inflation has fallen below the 2% limitation a limited number of times. The City is unable to predict if any adjustments to the full cash value base of real property within the City, whether an increase or a reduction, will be realized in the future. Appeals of Assessed Values. There are two types of appeals of assessed values that could adversely impact property tax revenues: Proposition 8 Appeals. Most of the appeals that might be filed in the City would be based on Section 51 of the Revenue and Taxation Code, which requires that for each lien date the value of real property must be the lesser of its base year value annually adjusted by the inflation factor pursuant to Article XIIIA of the State Constitution or its full cash value, taking into account reductions in value due to damage, destruction, depreciation, obsolescence, removal of property or other factors causing a decline in value. Under California law, property owners may apply for a reduction of their property tax assessment by filing a written application with the appropriate county board of Attachment 7 Page 413 of 858 -58- equalization or assessment appeals board. In most cases, the appeal is filed because the applicant believes that present market conditions (such as residential home prices) cause the property to be worth less than its current assessed value. These market-driven appeals are known as Proposition 8 appeals. Any reduction in the assessment ultimately granted as a Proposition 8 appeal applies to the year for which application is made and during which the written application was filed. These reductions are often temporary and are adjusted back to their original values when market conditions improve. Once the property has regained its prior value, adjusted for inflation, it once again is subject to the annual inflationary factor growth rate allowed under Article XIIIA. Base Year Appeals. A second type of assessment appeal is called a base year appeal, where the property owners challenge the original (basis) value of their property. Appeals for reduction in the “base year” value of an assessment, if successful, reduce the assessment for the year in which the appeal is taken and prospectively thereafter. The base year is determined by the completion date of new construction or the date of change of ownership. Any base year appeal must be made within four years of the change of ownership or new construction date. No assurance can be given that property tax appeals in the future will not significantly reduce the City’s property tax revenues. Natural Calamities General. Natural disasters, such as seismic events, flooding, landslides or wildfires, could affect economic activity in the City, and could have a negative impact on City finances. There can be no assurance that the occurrence of any natural calamity would not cause substantial interference to and costs for the City or impact the Leased Property. Seismic. The City is located in a seismically active area of California. If there were to be an occurrence of severe seismic activity in the area of the City, such an occurrence may adversely affect economic activity in the City, and could have a negative impact on City finances. The City could be at risk from strong ground motion and secondary effects related to a seismic event, including ground failure (such as landslide, liquefaction, lateral spreading, lurching and differential settlement) and seismically induced flooding (such as flooding from a tsunami or dam failure). Wildfires. Although the City is not located within a Fire Hazard Severity Zone as established by CAL FIRE (https://egis.fire.ca.gov/FHSZ), there are areas adjacent to the City that are open space parklands and more susceptible to wildfires. In addition, many areas of northern California have suffered from major wildfires in recent years, including numerous wildfires in northern California in 2020 and in 2021. In addition to their direct impact on health and safety and property damage in California, the smoke from many of these wildfires has impacted the quality of life throughout the region, and the City and may have short-term and future impacts on commercial activity in the City. The fires have been driven in large measure by drought conditions and low humidity. Experts expect that California will continue to be subject to wildfire conditions year over year as a result in changing weather patterns due to climate change. Droughts. California is subject to droughts from time-to-time. On April 1, 2015, for the first time in California’s history, Governor Edmund G. Brown directed the State Water Resources Control Board to implement mandatory water reductions in cities and towns across California to Attachment 7 Page 414 of 858 -59- reduce water usage by 25%. Following a wet winter in 2016-17, most of the mandatory water reductions were lifted, only to return again in 2021 following unusually dry years. Climate Change. City finances may be negatively impacted by climate change. Local impacts of climate change are not definitive, but parcels in the City could experience changes to local and regional weather patterns; increased risk of flooding; and water restrictions. See, for example, the discussions above regarding wildfires and droughts. COVID-19 Pandemic The spread of COVID-19 has impacted governments, businesses and people in a manner that is having negative effects on global and local economies. In response to the pandemic, the City took actions to activate its emergency operations center, temporarily close all non-essential City services, introduced teleworking as and where appropriate, implemented daily screening of all employees, and abided by all state and federal guidelines and orders. The City actively monitors the COVID-19 situation in the community and acts swiftly to issue executive orders to mitigate the spread of the virus. Additionally, the City has forged a strong relationship with the Mendocino County Health Department and local medical clinics to ensure timely sharing of information and coordinated responses to issues. The City continues to monitor the spread of COVID-19 and is working with local, state, and national agencies to address the potential impact of the pandemic upon the City. There can be no assurances that the spread of COVID-19 and/or responses intended to slow the spread of COVID-19 such as declining business and travel activity, will not materially adversely impact the state and national economies and, accordingly, materially adversely impact the financial condition of the City and the City’s General Fund. In addition, the City may experience increased personnel costs and/or reduced revenues due to the COVID-19 situation and the related impact on economic and other activity in and around the City. Cyber Security The City, like many other public and private entities, relies on computer and other digital networks and systems to conduct its operations. As a recipient and provider of personal, private or other sensitive electronic information, the City is potentially subject to multiple cyber threats, including without limitation hacking, viruses, ransomware, malware and other attacks. The City maintains insurance coverage for loss resulting from cyber security incidents, however no assurance can be given that the City’s efforts to manage cyber threats and attacks will be successful in all cases, or that any such attack will not materially impact the operations or finances of the City, or the administration of the Bonds. The City is also reliant on other entities and service providers in connection with the administration of the Bonds, including without limitation the County tax collector for the levy and collection of property taxes, the Trustee, and the dissemination agent. No assurance can be given that the City and/or the other entities will not be affected by cyber threats and attacks in a manner that may affect the Bond owners. Limitations on Remedies Available to Bond Owners The ability of the City to comply with its covenants under the Lease may be adversely affected by actions and events outside of the control of the City, and may be adversely affected by actions taken (or not taken) by voters, property owners, taxpayers or payers of assessments, fees and charges. See “CONSTITUTIONAL AND STATUTORY LIMITATIONS ON TAXES AND APPROPRIATIONS” above. Furthermore, any remedies available to the owners of the Bonds Attachment 7 Page 415 of 858 -60- upon the occurrence of an event of default under the Lease or the Indenture are in many respects dependent upon judicial actions, which are often subject to discretion and delay and could prove both expensive and time consuming to obtain. In addition to the limitations on Bondowner remedies contained in the Lease and the Indenture, the rights and obligations under the Bonds, the Lease and the Indenture may be subject to the following: the United States Bankruptcy Code and applicable bankruptcy, insolvency, reorganization, moratorium, or similar laws relating to or affecting the enforcement of creditors’ rights generally, now or hereafter in effect; usual equity principles which may limit the specific enforcement under State law of certain remedies; the exercise by the United States of America of the powers delegated to it by the Federal Constitution; and the reasonable and necessary exercise, in certain exceptional situations, of the police power inherent in the sovereignty of the State and its governmental bodies in the interest of serving a significant and legitimate public purpose. Bankruptcy proceedings, or the exercise of powers by the federal or state government, if initiated, could subject the Owners of the Bonds to judicial discretion and interpretation of their rights in bankruptcy or otherwise, and consequently may entail risks of delay, limitation or modification of their rights. The opinion to be delivered by Bond Counsel, concurrently with the issuance of the Bonds, will include a qualification that the rights of the owners of the Bonds and the enforceability of the Bonds and the Indenture, the Lease and the Site Lease may be subject to bankruptcy, insolvency, reorganization, moratorium and other similar laws affecting creditors’ rights heretofore or hereafter enacted and may also be subject to the exercise of judicial discretion in accordance with principles of equity or otherwise in appropriate cases. See “APPENDIX E — FORM OF OPINION OF BOND COUNSEL.” Secondary Market for Bonds There can be no guarantee that there will be a secondary market for the Bonds or, if a secondary market exists, that any Bonds can be sold for any particular price. Occasionally, because of general market conditions or because of adverse history or economic prospects connected with a particular issue, secondary marketing practices in connection with a particular issue are suspended or terminated. Additionally, prices of issues for which a market is being made will depend upon then-prevailing circumstances. Such prices could be substantially different from the original purchase price. TAX MATTERS Federal Tax Status. In the opinion of Jones Hall, A Professional Law Corporation, San Francisco, California, Bond Counsel, subject, however to the qualifications set forth below, under existing law, the interest on the Bonds is excluded from gross income for federal income tax purposes and such interest is not an item of tax preference for purposes of the federal alternative minimum tax. The opinions set forth in the preceding paragraph are subject to the condition that the City comply with all requirements of the Internal Revenue Code of 1986, as amended (the “Tax Code”) that must be satisfied subsequent to the issuance of the Bonds in order that the interest thereon be, and continue to be, excludable from gross income for federal income tax purposes. The City has made certain representations and covenants in order to comply with each such requirement. Inaccuracy of those representations, or failure to comply with certain of those covenants, may Attachment 7 Page 416 of 858 -61- cause the inclusion of such interest in gross income for federal income tax purposes, which may be retroactive to the date of issuance of the Bonds. Tax Treatment of Original Issue Discount and Premium. If the initial offering price to the public at which a Bond is sold is less than the amount payable at maturity thereof, then such difference constitutes “original issue discount” for purposes of federal income taxes and State of California personal income taxes. If the initial offering price to the public at which a Bond is sold is greater than the amount payable at maturity thereof, then such difference constitutes “bond premium” for purposes of federal income taxes and State of California personal income taxes. Under the Tax Code, original issue discount is treated as interest excluded from federal gross income and exempt from State of California personal income taxes to the extent properly allocable to each owner thereof subject to the limitations described in the first paragraph of this section. The original issue discount accrues over the term to maturity of the Bond on the basis of a constant interest rate compounded on each interest or principal payment date (with straight-line interpolations between compounding dates). The amount of original issue discount accruing during each period is added to the adjusted basis of such Bonds to determine taxable gain upon disposition (including sale, redemption, or payment on maturity) of such Bond. The Tax Code contains certain provisions relating to the accrual of original issue discount in the case of purchasers of the Bonds who purchase the Bonds after the initial offering of a substantial amount of such maturity. Owners of such Bonds should consult their own tax advisors with respect to the tax consequences of ownership of Bonds with original issue discount, including the treatment of purchasers who do not purchase in the original offering to the public at the first price at which a substantial amount of such Bonds is sold to the public. Under the Tax Code, bond premium is amortized on an annual basis over the term of the Bond (said term being the shorter of the Bond’s maturity date or its call date). The amount of bond premium amortized each year reduces the adjusted basis of the owner of the Bond for purposes of determining taxable gain or loss upon disposition. The amount of bond premium on a Bond is amortized each year over the term to maturity of the Bond on the basis of a constant interest rate compounded on each interest or principal payment date (with straight-line interpolations between compounding dates). Amortized Bond premium is not deductible for federal income tax purposes. Owners of premium Bonds, including purchasers who do not purchase in the original offering, should consult their own tax advisors with respect to State of California personal income tax and federal income tax consequences of owning such Bonds. California Tax Status. In the further opinion of Bond Counsel, interest on the Bonds is exempt from California personal income taxes. Other Tax Considerations. Current and future legislative proposals, if enacted into law, clarification of the Tax Code or court decisions may cause interest on the Bonds to be subject, directly or indirectly, to federal income taxation or to be subject to or exempted from state income taxation, or otherwise prevent beneficial owners from realizing the full current benefit of the tax status of such interest. The introduction or enactment of any such legislative proposals, clarification of the Tax Code or court decisions may also affect the market price for, or marketability of, the Bonds. It cannot be predicted whether or in what form any such proposal might be enacted or whether, if enacted, such legislation would apply to bonds issued prior to enactment. The opinions expressed by Bond Counsel are based upon existing legislation and regulations as interpreted by relevant judicial and regulatory authorities as of the date of such Attachment 7 Page 417 of 858 -62- opinion, and Bond Counsel has expressed no opinion with respect to any proposed legislation or as to the tax treatment of interest on the Bonds, or as to the consequences of owning or receiving interest on the Bonds, as of any future date. Prospective purchasers of the Bonds should consult their own tax advisors regarding any pending or proposed federal or state tax legislation, regulations or litigation, as to which Bond Counsel expresses no opinion. Owners of the Bonds should also be aware that the ownership or disposition of, or the accrual or receipt of interest on, the Bonds may have federal or state tax consequences other than as described above. Other than as expressly described above, Bond Counsel expresses no opinion regarding other federal or state tax consequences arising with respect to the Bonds, the ownership, sale or disposition of the Bonds, or the amount, accrual or receipt of interest on the Bonds. CERTAIN LEGAL MATTERS Jones Hall, A Professional Law Corporation, Bond Counsel, will render an opinion with respect to the validity of the Bonds, the form of which is set forth in “APPENDIX E — FORM OF OPINION OF BOND COUNSEL.” Certain legal matters will also be passed upon for the City and the Authority by Jones Hall, A Professional Law Corporation, as Disclosure Counsel. Certain legal matters will be passed upon for the City by the City Attorney, and for the Underwriter by its counsel, Stradling Yocca Carlson & Rauth, a Professional Corporation. LITIGATION Except as may otherwise be set forth in this Official Statement, to the best knowledge of the City, 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 and received by the City or, to the knowledge of the City, threatened against or affecting the City or the assets, properties or operations of the City which, if determined adversely to the City or its interests, would have a material and adverse effect upon the consummation of the transactions contemplated by or the validity of the Lease, the Site Lease or the Indenture, or upon the financial condition, assets, properties or operations of the City, and the City 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 adversely affect the consummation of the transactions contemplated by the Lease, the Site Lease or the Indenture, or the financial conditions, assets, properties or operations of the City, including but not limited to the payment and performance of the City’s obligations under the Lease. The City is subject to claims, actions, and lawsuits arising in the normal course of business. At this time, the City does not believe any of the lawsuits are likely to be resolved in a manner that would result in liability to the City in excess of its existing insurance coverage. However, no assurance can be given that an adverse outcome in any pending or future litigation against the City would not result in a material adverse effect upon the financial condition of the City and its ability to pay the Lease Payments securing the Bonds. Attachment 7 Page 418 of 858 -63- RATING S&P Global Ratings (“S&P”), a division of Standard & Poor’s Financial Services LLC has assigned its municipal bond rating of “___” to the Bonds. This rating reflects only the views of S&P, and an explanation of the significance of this rating, and any outlook assigned to or associated with this rating, should be obtained from S&P. Generally, a rating agency bases its rating on the information and materials furnished to it and on investigations, studies and assumptions of its own. The City has provided certain additional information and materials to the rating agency (some of which does not appear in this Official Statement). There is no assurance that this rating will continue for any given period of time or that this rating will not be revised downward or withdrawn entirely by the rating agency, if in the judgment of the rating agency, circumstances so warrant. Any such downward revision or withdrawal of any rating on the Bonds may have an adverse effect on the market price or marketability of the Bonds. CONTINUING DISCLOSURE The City will covenant for the benefit of owners of the Bonds to provide certain financial information and operating data by not later than nine months after the end of the City’s fiscal year, or April 1, of each year (based on the City’s current fiscal year-end of June 30), commencing April 1, 2022, with the report for the 2020-21 fiscal year (the “Annual Report”) and to provide notices of the occurrence of certain listed events. These covenants have been made in order to assist the Underwriter in complying with Securities Exchange Commission Rule 15c2-12(b)(5), as amended (the “Rule”). The specific nature of the information to be contained in the Annual Report or the notices of listed events by the City is set forth in “APPENDIX D – Form of Continuing Disclosure Certificate.” A review of the City’s prior compliance with its continuing disclosure obligations under the Rule reveals that the City did not timely file its audited financial statements and/or annual report information by the due dates for Fiscal Years 2015-16 through 2019-20. All remedial filings have been made and the City has engaged NHA Advisors LLC to assist with its continuing disclosure obligations under the Rule in the future. MUNICIPAL ADVISOR The City and the Authority have retained NHA Advisors LLC, of San Rafael, California, as municipal advisor (the “Municipal Advisor”) in connection with the offering of the Bonds. All financial and other information presented in this Official Statement has been provided by the City and the Authority from their records, except for information expressly attributed to other sources. The Municipal Advisor takes no responsibility for the accuracy or completeness of the data provided by the City, Authority or others and has not undertaken to make an independent verification or does not assume responsibility for the accuracy, completeness, or fairness of the information contained in this Official Statement. The fee of the Municipal Advisor is contingent upon the successful closing of the Bonds. Attachment 7 Page 419 of 858 -64- UNDERWRITING Piper Sandler & Co., as underwriter (the “Underwriter”), has entered into a Bond Purchase Agreement with the Authority under which it will purchase the Bonds at a purchase price of $________________, which is equal to the par amount of the Bonds, less an Underwriter’s discount of $____________. The Underwriter will be obligated to take and pay for all of the Bonds if any are taken. The Underwriter intends to offer the Bonds to the public at the offering prices set forth on the inside cover page of this Official Statement. After the initial public offering, the public offering price may be varied from time to time by the Underwriter. PROFESSIONAL SERVICES In connection with the issuance of the Bonds, fees payable to the following professionals involved in the offering are contingent upon the issuance and delivery of the Bonds: Jones Hall, A Professional Law Corporation, as Bond Counsel and Disclosure Counsel; NHA Advisors LLC, San Rafael, California, as municipal advisor to the Authority and the City; ____________, ______________, California, as counsel to the Underwriter; and The Bank of New York Mellon Trust Company, N.A., as Trustee. Attachment 7 Page 420 of 858 -65- EXECUTION The execution of this Official Statement and its delivery have been authorized by the Board of the Authority and the City Council of the City. UKIAH PUBLIC FINANCING AUTHORITY By: Executive Director CITY OF UKIAH By: City Manager Attachment 7 Page 421 of 858 A-1 APPENDIX A AUDITED FINANCIAL STATEMENTS FOR FISCAL YEAR ENDING JUNE 30, 2021 Attachment 7 Page 422 of 858 B-1 APPENDIX B GENERAL INFORMATION ABOUT THE CITY OF UKIAH AND THE COUNTY OF MENDOCINO The following information concerning the County of Mendocino (the “County”) and the City of Ukiah (the “City”) is included only for the purpose of supplying general information regarding the area. The Bonds are not a debt of the County, the City, the State of California (the “State”) or any of its political subdivisions, and neither the County, the City, the State nor any of its political subdivisions is liable therefor. The City and the Underwriter take no responsibility for the accuracy or completeness of such information. General The City. The City is located in the north central area of the County, approximately 100 miles north of San Francisco and about an hour’s drive from the coastal redwoods and the Mendocino Coast. The City is the largest city in the County and is the County seat. The City was incorporated in 1876 and was the first community in the United States to utilize a Council-Manager form of government. The City Council is made up of five members who set policy and set up the City budget. The City Council appoints a Mayor, City Manager, City Treasurer, City Clerk and members of other commissions. The County. The County was created in 1850 by the State Legislature and was one of the State’s original 27 counties. Sonoma, Lake, Glenn, Tehama, Trinity and Humboldt counties all border Mendocino County on its inland side. The County spans an area of over 2 million acres, which is approximately 3500 square miles and its coastline runs about 100 miles. Coastal highways 1 and 101, running through the center of the County, are important transportation routes. Smaller country roads connect Mendocino’s five distinct regions, which are the Anderson Valley to the south, South Mendocino coast, North Mendocino coast, Northern Mendocino County and the Russian River Valley to the east. The City of Ukiah is the largest city in the County and is the County seat. The County is legislatively governed by a board of five supervisors, each with a separate district. The County has nine Indian reservations lying within its borders, the fourth most of any county in the United States (after San Diego County, California; Sandoval County, New Mexico; and Riverside County, California). Attachment 7 Page 423 of 858 B-2 Population The following table lists population estimates for the City, the County and the State for the last five years, as of January 1 each year. CITY OF UKIAH, COUNTY OF MENDOCINO, STATE OF CALIFORNIA Population Estimates Years 2017 through 2021, as of January 1 Year City of Ukiah Mendocino County State of California 2017 15,937 88,646 39,352,398 2018 16,081 88,542 39,519,535 2019 15,942 88,205 39,605,361 2020 15,951 87,708 39,648,938 2021 15,526 86,669 39,466,855 Source: California Department of Finance, Demographic Research Unit. Remainder of page intentionally left blank] Attachment 7 Page 424 of 858 B-3 Industry and Employment MENDOCINO COUNTY Civilian Labor Force, Employment and Unemployment Calendar Years 2016 through 2020 (March 2020 benchmark) 2016 2017 2018 2019 2020 Civilian Labor Force (1) 39,620 39,560 39,460 38,650 37,020 Employment 37,520 37,760 37,870 37,090 33,720 Unemployment 2,100 1,800 1,590 1,560 3,290 Unemployment Rate 5.3% 4.5% 4.0% 4.0% 8.9% Wage and Salary Employment:(2) Agriculture 1,360 1,380 1,450 1,460 1,410 Mining and Logging 300 330 310 290 270 Construction 1,060 1,220 1,380 1,390 1,320 Manufacturing 2,550 2,540 2,470 2,430 2,360 Wholesale Trade 740 840 810 740 700 Retail Trade 4,730 4,760 4,820 4,810 4,480 Transportation, Warehousing, Utilities 710 710 730 720 840 Information 250 230 230 210 170 Financial Activities 1,050 1,060 1,070 1,050 980 Professional and Business Services 1,670 1,670 1,790 1,860 1,800 Educational and Health Services 5,580 5,750 5,780 5,840 5,530 Leisure and Hospitality 4,410 4,410 4,490 4,360 3,200 Other Services 790 810 810 750 700 Federal Government 280 270 270 270 290 State Government 570 560 580 600 640 Local Government 6,400 6,400 6,320 6,310 5,740 Total all Industries (3) 32,440 32,950 33,290 33,100 30,390 (1) Labor force data is by place of residence; includes self-employed individuals, unpaid family workers, household domestic workers, and workers on strike. (2) Industry employment is by place of work; excludes self-employed individuals, unpaid family workers, household domestic workers, and workers on strike. (3) Columns may not sum to totals due to rounding. Source: State of California Employment Development Department. [Remainder of page intentionally left blank] Attachment 7 Page 425 of 858 B-4 Principal Employers The following table lists the principal employers within the City for fiscal year 2019-20. CITY OF UKIAH Principal Employers Fiscal Year 2019-20 Employer Name No. of Employees Adventist Health Ukiah Valley 500-999 City of Ukiah 100-249 Costco Wholesale 100-249 County of Mendocino 1,000-1,250 Dharma Realm Buddhist Association 100-249 Mendocino Community Health 250-499 Mendocino County Office of Education 100-249 Pacific Coast Farm Credit 100-249 Ukiah Valley Medical Center 500-999 Walmart 100-249 Source: City of Ukiah. [Remainder of page intentionally left blank] Attachment 7 Page 426 of 858 B-5 The following table lists, in alphabetical order, the largest manufacturing and non- manufacturing employers within the County as of October 2021. COUNTY OF MENDOCINO Major Employers As of October 2021 (In Alphabetical Order) Employer Name Location Industry Adventist Health Howard Meml Willits Hospitals Adventist Health Mendocino Cst Fort Bragg Hospitals Adventist Health Ukiah Vly Ukiah Outpatient Services California Department-Forestry Willits Government Offices-State Costco Wholesale Ukiah Wholesale Clubs Coyote Valley Casino Redwood Valley Casinos Dharma Realm Buddhist Assn Ukiah Associations Fetzer Vineyards Hopland Wineries (mfrs) Georgia-Pacific Corp Fort Bragg Sawmills (mfrs) Little River Inn Little River Golf Courses Mendocino Community Health Ukiah Clinics Mendocino County Food Stamps Ukiah Government Offices-County Mendocino County Office of Edu Ukiah Boards of Education Mendocino County Sheriff Point Arena Government Offices-County Mendocino County Social Svc Ukiah Government Offices-County Mendocino Redwood Co LLC Calpella Restaurants Metalfx Inc Willits Sheet Metal Fabricators (mfrs) Oak Point Ranch Potter Valley Vineyards Pacific Coast Farm Credit Ukiah Loans-Agricultural Safeway Fort Bragg Grocers-Retail Sawmill Ukiah Sawmills & Planing Mills-General (mfrs) Ukiah City Civic Ctr Ukiah Government Offices-City/Village & Twp Ukiah High School Ukiah Schools Ukiah Valley Medical Ctr Ukiah Hospitals Walmart Ukiah Department Stores Source: State of California Employment Development Department, extracted from The America’s Labor Market Information System (ALMIS) Employer Database, 2022 1st edition. [Remainder of page intentionally left blank] Attachment 7 Page 427 of 858 B-6 Effective Buying Income “Effective Buying Income” is defined as personal income less personal tax and nontax payments, a number often referred to as “disposable” or “after-tax” income. Personal income is the aggregate of wages and salaries, other labor-related income (such as employer contributions to private pension funds), proprietor’s income, rental income (which includes imputed rental income of owner-occupants of non-farm dwellings), dividends paid by corporations, interest income from all sources, and transfer payments (such as pensions and welfare assistance). Deducted from this total are personal taxes (federal, state and local), nontax payments (fines, fees, penalties, etc.) and personal contributions to social insurance. According to U.S. government definitions, the resultant figure is commonly known as “disposable personal income.” The following table summarizes the total effective buying income for the City, the County, the State, and the United States for the period 2018 through 2022. CITY OF UKIAH, MENDOCINO COUNTY, STATE OF CALIFORNIA AND UNITED STATES EFFECTIVE BUYING INCOME As of January 1, 2018 through 2022 Year Area Total Effective Buying Income (000’s Omitted) Median Household Effective Buying Income 2018 City of Ukiah $304,459 $37,984 Mendocino County 1,833,429 40,496 California 1,113,648,181 59,646 United States 8,640,770,229 50,735 2019 City of Ukiah $341,372 $39,976 Mendocino County 1,958,994 42,231 California 1,183,264,399 62,637 United States 9,017,967,563 52,841 2020 City of Ukiah $412,016 $47,335 Mendocino County 2,374,052 48,768 California 1,243,564,816 65,870 United States 9,487,165,436 55,303 2021 City of Ukiah $366,626 $45,764 Mendocino County 2,149,946 46,801 California 1,290,894,604 67,956 United States 9,809,944,764 56,790 2022 City of Ukiah $416,520 $55,457 Mendocino County 2,538,336 55,971 California 1,452,426,153 77,058 United States 11,208,582,541 64,448 Source: The Nielsen Company (US), Inc for year 2018; Claritas, LLC for 2019 through 2022. Attachment 7 Page 428 of 858 B-7 Commercial Activity A summary of historic taxable sales within the City and the County during the past five years in which data is available is shown in the following tables. Total taxable sales during the first quarter of calendar year 2021 in the City were reported to be $143,482,524, a 13.16% increase over the total taxable sales of $126,801,383 reported during the first quarter of calendar year 2020. CITY OF UKIAH Taxable Retail Sales Number of Permits and Valuation of Taxable Transactions Calendar Years 2016 through 2020 (Dollars in Thousands) Retail Stores Total All Outlets Number of Permits Taxable Transactions Number of Permits Taxable Transactions 2016 478 $415,019 775 $467,938 2017 469 413,944 774 465,072 2018 457 432,223 803 485,110 2019 455 491,185 807 548,622 2020 461 520,425 814 582,571 Source: State Department of Tax and Fee Administration. Total taxable sales during the first quarter of calendar year 2021 in the County were reported to be $434,304,382, a 20.66% increase over the total taxable sales of $359,950,406 reported during the first quarter of calendar year 2020. COUNTY OF MENDOCINO Taxable Retail Sales Number of Permits and Valuation of Taxable Transactions Calendar Years 2016 through 2020 (Dollars in Thousands) Retail Stores Total All Outlets Number of Permits Taxable Transactions Number of Permits Taxable Transactions 2016 2,489 $1,075,436 4,145 $1,424,943 2017 2,529 1,111,403 4,460 1,467,165 2018 2,492 1,150,832 4,796 1,490,850 2019 2,472 1,245,092 5,046 1,602,968 2020 2,567 1,350,609 5,232 1,728,692 Source: State Department of Tax and Fee Administration. Attachment 7 Page 429 of 858 B-8 Construction Activity Construction activity in the City and the County for the past five years for which data is available is shown in the following tables. CITY OF UKIAH Building Permit Valuation For Calendar Years 2016 through 2020 (Dollars in Thousands)(1) 2016 2017 2018 2019 2020 Permit Valuation New Single-family $2,230.4 $3,582.6 $4,794.6 $2,054.1 $2,340.8 New Multi-family 8,400.0 0.0 0.0 0.0 3,526.4 Res. Alterations/Additions 850.3 1,133.6 10,268.4 627.8 991.5 Total Residential 11,480.7 4,716.2 15,063.0 2,681.9 6,858.7 New Commercial 654.0 3,403.7 5,699.5 331.6 1,973.3 New Industrial 78.2 0.0 0.0 14.6 0.0 New Other 667.0 505.1 1,877.1 244.9 700.0 Com. Alterations/Additions 726.4 726.8 845.0 608.0 613.1 Total Nonresidential 2,125.6 4,635.6 8,421.6 1,199.1 3,286.4 New Dwelling Units Single Family 13 16 25 11 9 Multiple Family 48 0 0 0 240 TOTAL 61 16 25 11 249 (1) Totals may not foot due to rounding. Source: Construction Industry Research Board, Building Permit Summary. MENDOCINO COUNTY Building Permit Valuation For Calendar Years 2016 through 2020 (Dollars in Thousands)(1) 2016 2017 2018 2019 2020 Permit Valuation New Single-family $11,628.5 $17,779.4 $29,034.7 $22,296.2 $20,148.2 New Multi-family 8,400.0 224.9 0.0 1,630.7 3,526.4 Res. Alterations/Additions 10,523.7 7,241.9 985.7 9,095.0 9,570.8 Total Residential 30,552.2 25,246.2 39,303.1 33,021.9 33,245.4 New Commercial 3,937.5 14,404.3 4,248.8 17,698.1 20,058.6 New Industrial 78.2 775.3 5.0 14.6 20,158.6 New Other 4,008.9 2,859.7 20,105.1 5,738.3 4,898.0 Com. Alterations/Additions 6,652.3 2,240.8 7,387.6 8,771.3 5,546.0 Total Nonresidential 14,676.9 20,280.1 31,746.5 32,222.3 50,661.2 New Dwelling Units Single Family 70 91 157 137 102 Multiple Family 48 2 0 8 240 TOTAL 118 93 157 145 342 (1) Totals may not foot due to rounding. Source: Construction Industry Research Board, Building Permit Summary. Attachment 7 Page 430 of 858 C-1 APPENDIX C SUMMARY OF CERTAIN PROVISIONS OF PRINCIPAL LEGAL DOCUMENTS Attachment 7 Page 431 of 858 D-1 APPENDIX D FORM OF CONTINUING DISCLOSURE CERTIFICATE $____________ UKIAH PUBLIC FINANCING AUTHORITY Lease Revenue Bonds, Series 2022 (Capital Projects) This Continuing Disclosure Certificate (this “Disclosure Certificate”) is executed and delivered by the City of Ukiah (the “City”) in connection with the issuance by the Authority of the bonds captioned above (the “Bonds”). The Bonds are being issued under an Indenture of Trust dated as of February 1, 2022 (the “Indenture”), by and between the Authority and The Bank of New York Mellon Trust Company, N.A., as trustee (the “Trustee”). The City hereby covenants and agrees as follows: Section 1. Purpose of the Disclosure Certificate. This Disclosure Certificate is being executed and delivered by the City for the benefit of the holders and beneficial owners of the Bonds and in order to assist the Participating Underwriter in complying with S.E.C. Rule 15c2- 12(b)(5). Section 2. Definitions. In addition to the definitions set forth above and in the Indenture, which apply to any capitalized term used in this Disclosure Certificate unless otherwise defined in this Section, the following capitalized terms shall have the following meanings: “Annual Report” means any Annual Report provided by the City pursuant to, and as described in, Sections 3 and 4 of this Disclosure Certificate. “Annual Report Date” means April 1 of each year. “Dissemination Agent” means NHA Advisors LLC, or any successor Dissemination Agent designated in writing by the City and which has filed with the City a written acceptance of such designation. “Listed Events” means any of the events listed in Section 5(a) of this Disclosure Certificate. “MSRB” means the Municipal Securities Rulemaking Board, which has been designated by the Securities and Exchange Commission as the sole repository of disclosure information for purposes of the Rule, or any other repository of disclosure information that may be designated by the Securities and Exchange Commission as such for purposes of the Rule in the future. “Official Statement” means the final official statement, executed by the City and the Authority in connection with the issuance of the Bonds. “Participating Underwriter” means Oppenheimer & Co. Inc., the original underwriter of the Bonds required to comply with the Rule in connection with offering of the Bonds. “Rule” means Rule 15c2-12(b)(5) adopted by the Securities and Exchange Commission under the Securities Exchange Act of 1934, as the same may be amended from time to time. Attachment 7 Page 432 of 858 D-2 Section 3. Provision of Annual Reports. (a) The City shall, or shall cause the Dissemination Agent to, not later than the Annual Report Date, commencing April 1, 2023, with the report for Fiscal Year 2021-22, provide to the MSRB, in an electronic format as prescribed by the MSRB, an Annual Report that is consistent with the requirements of Section 4 of this Disclosure Certificate. Not later than 15 Business Days prior to the Annual Report Date, the City shall provide the Annual Report to the Dissemination Agent (if other than the City). If by 15 Business Days prior to the Annual Report Date the Dissemination Agent (if other than the City) has not received a copy of the Annual Report, the Dissemination Agent shall contact the City to determine if the City is in compliance with the previous sentence. The Annual Report may be submitted as a single document or as separate documents comprising a package, and may include by reference other information as provided in Section 4 of this Disclosure Certificate; provided that the audited financial statements of the City may be submitted separately from the balance of the Annual Report, and later than the Annual Report Date, if not available by that date. If the City’s Fiscal Year changes, it shall give notice of such change in the same manner as for a Listed Event under Section 5(b). The City shall provide a written certificate with each Annual Report furnished to the Dissemination Agent to the effect that such Annual Report constitutes the Annual Report required to be furnished by the City hereunder. (b) If the City does not provide (or cause the Dissemination Agent to provide) an Annual Report by the Annual Report Date, the City shall provide (or cause the Dissemination Agent to provide) in a timely manner to the MSRB, in an electronic format as prescribed by the MSRB, a notice in substantially the form attached as Exhibit A. (c) With respect to each Annual Report, the Dissemination Agent shall: (i) determine each year prior to the Annual Report Date the then-applicable rules and electronic format prescribed by the MSRB for the filing of annual continuing disclosure reports; and (ii) if the Dissemination Agent is other than the City, file a report with the City certifying that the Annual Report has been provided pursuant to this Disclosure Certificate, and stating the date it was provided. Section 4. Content of Annual Reports. The City’s Annual Report shall contain or incorporate by reference the following: (a) Audited Financial Statements of the City prepared in accordance with Generally Accepted Accounting Principles as promulgated to apply to governmental entities from time to time by the Governmental Accounting Standards Board. If the City’s audited financial statements are not available by the Annual Report Date, the Annual Report shall contain unaudited financial statements in a format similar to the financial statements contained in the final Official Statement, and the audited financial statements shall be filed in the same manner as the Annual Report when they become available. (b) To the extent not contained in the audited financial statements filed pursuant to the preceding clause (a), the Annual Report shall contain information showing: (i) the principal amount of Bonds outstanding as of June 30 preceding the filing of the Annual Report; Attachment 7 Page 433 of 858 D-3 (ii) the balance in each fund under the Indenture as of June 30 preceding the filing of the Annual Report; and (iii) updates to the substance of the information contained in the following tables in the Official Statement: (A) General Fund Revenues, Expenditures and Fund Balances (most recent adopted budget), substantially in the form of Table 1; (B) General Fund Revenues, Expenditures and Fund Balances (most recently completed fiscal year audited), substantially in the form of Table 3; (C) General Fund Tax Revenues by Source, substantially in the form of Table 4; (D) Taxable Transactions, substantially in the form of Table 6; (E) Assessed Value of Taxable Property, substantially in the form of Table 7; and (F) Top Twenty Local Secured Taxpayers, substantially in the form of Table 9. (c) In addition to any of the information expressly required to be provided under this Disclosure Certificate, the City shall provide such further material information, if any, as may be necessary to make the specifically required statements, in the light of the circumstances under which they are made, not misleading. (d) Any or all of the items listed above may be included by specific reference to other documents, including official statements of debt issues of the City or related public entities, which are available to the public on the MSRB’s Internet web site or filed with the Securities and Exchange Commission. The City shall clearly identify each such other document so included by reference. Section 5. Reporting of Significant Events. (a) The City shall give, or cause to be given, notice of the occurrence of any of the following Listed Events with respect to the Bonds: (1) Principal and interest payment delinquencies. (2) Non-payment related defaults, if material. (3) Unscheduled draws on debt service reserves reflecting financial difficulties. (4) Unscheduled draws on credit enhancements reflecting financial difficulties. (5) Substitution of credit or liquidity providers, or their failure to perform. (6) Adverse tax opinions, the issuance by the Internal Revenue Service of proposed or final determinations of taxability, Notices of Proposed Issue (IRS Form 5701- TEB) or other material notices or determinations with respect to the tax status of the security, or other material events affecting the tax status of the security. (7) Modifications to rights of security holders, if material. (8) Bond calls, if material, and tender offers. Attachment 7 Page 434 of 858 D-4 (9) Defeasances. (10) Release, substitution, or sale of property securing repayment of the securities, if material. (11) Rating changes. (12) Bankruptcy, insolvency, receivership or similar event of the City or other obligated person. (13) The consummation of a merger, consolidation, or acquisition involving the City or an obligated person, or the sale of all or substantially all of the assets of the City or an obligated person (other than in the ordinary course of business), the entry into a definitive agreement to undertake such an action, or the termination of a definitive agreement relating to any such actions, other than pursuant to its terms, if material. (14) Appointment of a successor or additional trustee or the change of name of a trustee, if material. (15) Incurrence of a financial obligation of the City, if material, or agreement to covenants, events of default, remedies, priority rights, or other similar terms of a financial obligation of the City, any of which affect security holders, if material (for definition of “financial obligation,” see clause (f)). (16) Default, event of acceleration, termination event, modification of terms, or other similar events under the terms of a financial obligation of the City, any of which reflect financial difficulties (for definition of “financial obligation,” see clause (f)). (b) Whenever the City obtains knowledge of the occurrence of a Listed Event, the City shall, or shall cause the Dissemination Agent (if not the City) to, file a notice of such occurrence with the MSRB, in an electronic format as prescribed by the MSRB, in a timely manner not in excess of 10 business days after the occurrence of the Listed Event. Notwithstanding the foregoing, notice of Listed Events described in subsection (a)(8) above need not be given under this subsection any earlier than the notice (if any) of the underlying event is given to holders of affected Bonds under the Indenture. (c) The City acknowledges that the events described in subparagraphs (a)(2), (a)(7), (a)(8) (if the event is a bond call), (a)(10), (a)(13), (a)(14), and (a)(15) of this Section 5 contain the qualifier “if material” and that subparagraph (a)(6) also contains the qualifier “material” with respect to certain notices, determinations or other events affecting the tax status of the Bonds. The City shall cause a notice to be filed as set forth in paragraph (b) above with respect to any such event only to the extent that it determines the event’s occurrence is material for purposes of U.S. federal securities law. Whenever the City obtains knowledge of the occurrence of any of these Listed Events, the City will as soon as possible determine if such event would be material under applicable federal securities law. If such event is determined to be material, the City will cause a notice to be filed as set forth in paragraph (b) above. (d) For the purposes of the event identified in (a)(12) above, the event is considered to occur when any of the following occur: the appointment of a receiver, fiscal agent or similar officer for an obligated person in a proceeding under the U.S. Bankruptcy Code or in any other proceeding under state or federal law in which a court or governmental authority has assumed jurisdiction over substantially all of the assets or business of the obligated person, or if such jurisdiction has been assumed by leaving the existing governmental body and officials or officers in possession but subject to the supervision and orders of a court or governmental authority, or the entry of an order confirming a plan of reorganization, arrangement or liquidation by a court or governmental authority having supervision or jurisdiction over substantially all of the assets or business of the obligated person. Attachment 7 Page 435 of 858 D-5 (e) For purposes of this Disclosure Certificate, any event described in paragraph (a)(12) above is considered to occur when any of the following occur: the appointment of a receiver, fiscal agent, or similar officer for the City in a proceeding under the United States Bankruptcy Code or in any other proceeding under state or federal law in which a court or governmental authority has assumed jurisdiction over substantially all of the assets or business of the City, or if such jurisdiction has been assumed by leaving the existing governing body and officials or officers in possession but subject to the supervision and orders of a court or governmental authority, or the entry of an order confirming a plan of reorganization, arrangement, or liquidation by a court or governmental authority having supervision or jurisdiction over substantially all of the assets or business of the City. (f) For purposes of Section 5(a)(15) and (16), “financial obligation” means a (i) debt obligation; (ii) derivative instrument entered into in connection with, or pledged as security or a source of payment for, an existing or planned debt obligation; or (iii) guarantee of (i) or (ii). The term financial obligation shall not include municipal securities as to which a final official statement has been provided to the Municipal Securities Rulemaking Board consistent with the Rule. Section 6. Identifying Information for Filings with the MSRB. All documents provided to the MSRB under the Disclosure Certificate shall be accompanied by identifying information as prescribed by the MSRB. Section 7. Termination of Reporting Obligation. The City’s obligations under this Disclosure Certificate shall terminate upon the legal defeasance, prior redemption or payment in full of all of the Bonds. If such termination occurs prior to the final maturity of the Bonds, the City shall give notice of such termination in the same manner as for a Listed Event under Section 5(b). Section 8. Dissemination Agent. The City may, from time to time, appoint or engage a Dissemination Agent to assist it in carrying out its obligations under this Disclosure Certificate, and may discharge any such Agent, with or without appointing a successor Dissemination Agent. Any Dissemination Agent may resign by providing 30 days’ written notice to the City. Section 9. Amendment; Waiver. Notwithstanding any other provision of this Disclosure Certificate, the City may amend this Disclosure Certificate, and any provision of this Disclosure Certificate may be waived, provided that the following conditions are satisfied: (a) if the amendment or waiver relates to the provisions of Sections 3(a), 4 or 5(a), it may only be made in connection with a change in circumstances that arises from a change in legal requirements, change in law, or change in the identity, nature, or status of an obligated person with respect to the Bonds, or type of business conducted; (b) the undertakings herein, as proposed to be amended or waived, would, in the opinion of nationally recognized bond counsel, have complied with the requirements of the Rule at the time of the primary offering of the Bonds, after taking into account any amendments or interpretations of the Rule, as well as any change in circumstances; and (c) the proposed amendment or waiver either (i) is approved by holders of the Bonds in the manner provided in the Indenture for amendments to the Indenture with the consent of holders, or (ii) does not, in the opinion of nationally recognized bond counsel, materially impair the interests of the holders or beneficial owners of the Bonds. Attachment 7 Page 436 of 858 D-6 If the annual financial information or operating data to be provided in the Annual Report is amended pursuant to the provisions hereof, the first annual financial information filed pursuant hereto containing the amended operating data or financial information shall explain, in narrative form, the reasons for the amendment and the impact of the change in the type of operating data or financial information being provided. If an amendment is made to the undertaking specifying the accounting principles to be followed in preparing financial statements, the annual financial information for the year in which the change is made shall present a comparison between the financial statements or information prepared on the basis of the new accounting principles and those prepared on the basis of the former accounting principles. The comparison shall include a qualitative discussion of the differences in the accounting principles and the impact of the change in the accounting principles on the presentation of the financial information, in order to provide information to investors to enable them to evaluate the ability of the City to meet its obligations. To the extent reasonably feasible, the comparison shall be quantitative. A notice of any amendment made pursuant to this Section 9 shall be filed in the same manner as for a Listed Event under Section 5(b). Section 10. Additional Information. Nothing in this Disclosure Certificate shall be deemed to prevent the City from disseminating any other information, using the means of dissemination set forth in this Disclosure Certificate or any other means of communication, or including any other information in any Annual Report or notice of occurrence of a Listed Event, in addition to that which is required by this Disclosure Certificate. If the City chooses to include any information in any Annual Report or notice of occurrence of a Listed Event in addition to that which is specifically required by this Disclosure Certificate, the City shall have no obligation under this Disclosure Certificate to update such information or include it in any future Annual Report or notice of occurrence of a Listed Event. Section 11. Default. In the event of a failure of the City to comply with any provision of this Disclosure Certificate, the Participating Underwriter or any holder or beneficial owner of the Bonds may take such actions as may be necessary and appropriate, including seeking mandate or specific performance by court order, to cause the City to comply with its obligations under this Disclosure Certificate. A default under this Disclosure Certificate shall not be deemed an Event of Default under the Indenture, and the sole remedy under this Disclosure Certificate in the event of any failure of the City to comply with this Disclosure Certificate shall be an action to compel performance. Section 12. Duties, Immunities and Liabilities of Dissemination Agent. (a) The Dissemination Agent shall have only such duties as are specifically set forth in this Disclosure Certificate, and the City agrees to indemnify and save the Dissemination Agent, its officers, directors, employees and agents, harmless against any loss, expense and liabilities which it may incur arising out of or in the exercise or performance of its powers and duties hereunder, including the costs and expenses (including attorneys’ fees) of defending against any claim of liability, but excluding liabilities due to the Dissemination Agent’s negligence or willful misconduct. The Dissemination Agent shall have no duty or obligation to review any information provided to it hereunder and shall not be deemed to be acting in any fiduciary capacity for the City, the Bond owners or any other party. The obligations of the City under this Section shall survive resignation or removal of the Dissemination Agent and payment of the Bonds. Attachment 7 Page 437 of 858 D-7 (b) The Dissemination Agent shall be paid compensation by the City for its services provided hereunder in accordance with its schedule of fees as amended from time to time, and shall be reimbursed for all expenses, legal fees and advances made or incurred by the Dissemination Agent in the performance of its duties hereunder. Section 13. Beneficiaries. This Disclosure Certificate shall inure solely to the benefit of the City, the Dissemination Agent, the Participating Underwriter and holders and beneficial owners from time to time of the Bonds, and shall create no rights in any other person or entity. Section 14. Counterparts. This Disclosure Certificate may be executed in several counterparts, each of which shall be regarded as an original, and all of which shall constitute one and the same instrument. Section 15. Governing Law. This Disclosure Certificate shall be governed by the laws of the state of California. Date: ________________, 2022 CITY OF UKIAH By Name:_____________ Title:_____________ ACCEPTED AND AGREED: NHA Advisors LLC, As Dissemination Agent By Authorized Representative Attachment 7 Page 438 of 858 E-1 APPENDIX E FORM OF OPINION OF BOND COUNSEL [Closing Date] Board of Directors Ukiah Public Financing Authority 300 Seminary Avenue Ukiah, California 95482 OPINION: $__________ Ukiah Public Financing Authority Lease Revenue Bonds, Series 2022 (Capital Projects) Members of the Board of the Directors: We have acted as bond counsel to the Ukiah Public Financing Authority (the “Authority”) in connection with the issuance by the Authority of its Lease Revenue Bonds, Series 2022 (Capital Projects) in the aggregate principal amount of $_________ (the “Bonds”), under an Indenture of Trust dated as of February 1, 2022 (the “Indenture”), between the Authority and The Bank of New York Mellon Trust Company, N.A., as trustee, and under the provisions of Article 4 (commencing with Section 6584) of Chapter 5, Division 7, Title 1 of the California Government Code (the “Bond Law”). The Bonds are secured by Revenues as defined in the Indenture, including certain lease payments made by the City of Ukiah (the “City”) under a Lease Agreement dated as of February 1, 2022 (the “Lease”) between the Authority as lessor and the City as lessee. We have examined the Indenture, the Lease, the Bond Law and such certified proceedings and other papers as we deem necessary to render this opinion. As to questions of fact material to our opinion, we have relied upon representations of the Authority and the City contained in the Indenture, the Lease and in the certified proceedings, and upon other certifications furnished to us, without undertaking to verify the same by independent investigation. Based upon our examination, we are of the opinion, under existing law, as follows: 1. The Authority is a joint exercise of powers agency duly organized and existing under the laws of the State of California, with power to enter into the Indenture and the Lease, to perform the agreements on its part contained therein and to issue the Bonds. 2. The Bonds constitute legal, valid and binding special obligations of the Authority enforceable in accordance with their terms and payable solely from the sources provided therefor in the Indenture. 3. The Indenture and the Lease have been duly approved by the Authority and constitute the legal, valid and binding obligations of the Authority enforceable against the Authority in accordance with their respective terms. 4. The Indenture establishes a valid first and exclusive lien on and pledge of the Revenues (as that term is defined in the Indenture) and other funds pledged thereby for the security of the Bonds, in accordance with the terms of the Indenture. Attachment 7 Page 439 of 858 E-2 5. The City is a municipal corporation duly organized and existing under the laws of the State of California, with power to enter into the Lease and to perform the agreements on its part contained therein. The Lease has been duly approved by the City and constitutes a legal, valid and binding obligation of the City enforceable against the City in accordance with its terms. 6. Interest on the Bonds is excluded from gross income for federal income tax purposes and is not an item of tax preference for purposes of the federal alternative minimum tax. The opinions set forth in the preceding sentence are subject to the condition that the Authority and the City comply with all requirements of the Internal Revenue Code of 1986, as amended, which must be satisfied subsequent to the issuance of the Bonds in order that interest thereon be, or continue to be, excluded from gross income for federal income tax purposes. The Authority and the City have covenanted in the Indenture, the Lease and in other instruments relating to the Bonds to comply with each of such requirements, and the Authority and the City have full legal authority to make and comply with such covenants. Failure to comply with certain of such requirements may cause the inclusion of interest on the Bonds in gross income for federal income tax purposes to be retroactive to the date of issuance of the Bonds. We express no opinion regarding other federal tax consequences arising with respect to the ownership, sale or disposition of the Bonds, or the amount, accrual or receipt of interest on the Bonds. 7. Interest on the Bonds is exempt from California personal income taxation. We express no opinion regarding any other tax consequences arising with respect to the ownership, sale or disposition of, or the amount, accrual or receipt of interest on, the Bonds. The rights of the owners of the Bonds and the enforceability of the Bonds, the Indenture and the Lease may be subject to bankruptcy, insolvency, reorganization, moratorium and other similar laws affecting creditors’ rights heretofore or hereafter enacted and may also be subject to the exercise of judicial discretion in appropriate cases. This opinion is given as of the date hereof, and we assume no obligation to revise or supplement this opinion to reflect any facts or circumstances that may hereafter come to our attention, or any changes in law that may hereafter occur. Our engagement with respect to this matter has terminated as of the date hereof. Respectfully submitted, A Professional Law Corporation Attachment 7 Page 440 of 858 F-1 APPENDIX F DTC AND THE BOOK-ENTRY ONLY SYSTEM The following description of the Depository Trust Company (“DTC”), the procedures and record keeping with respect to beneficial ownership interests in the Bonds, payment of principal, interest and other payments on the Bonds to DTC Participants or Beneficial Owners, confirmation and transfer of beneficial ownership interest in the Bonds and other related transactions by and between DTC, the DTC Participants and the Beneficial Owners is based solely on information provided by DTC. Accordingly, no representations can be made concerning these matters and neither the DTC Participants nor the Beneficial Owners should rely on the foregoing information with respect to such matters, but should instead confirm the same with DTC or the DTC Participants, as the case may be. Neither the issuer of the Bonds (the “Issuer”) nor the trustee appointed with respect to the Bonds (the “Agent”) take any responsibility for the information contained in this Appendix. No assurances can be given that DTC, DTC Participants or Indirect Participants will distribute to the Beneficial Owners (a) payments of interest, principal or premium, if any, with respect to the Bonds, (b) certificates representing ownership interest in or other confirmation or ownership interest in the Bonds, or (c) redemption or other notices sent to DTC or Cede & Co., its nominee, as the registered owner of the Bonds, or that they will so do on a timely basis, or that DTC, DTC Participants or DTC Indirect Participants will act in the manner described in this Appendix. The current “Rules” applicable to DTC are on file with the Securities and Exchange Commission and the current “Procedures” of DTC to be followed in dealing with DTC Participants are on file with DTC. 1. The Depository Trust Company (“DTC”), New York, NY, will act as securities depository for the securities (the “Securities”). The Securities will be issued as fully-registered securities registered in the name of Cede & Co. (DTC’s partnership nominee) or such other name as may be requested by an authorized representative of DTC. One fully-registered Security certificate will be issued for each issue of the Securities, each in the aggregate principal amount of such issue, and will be deposited with DTC. If, however, the aggregate principal amount of any issue exceeds $500 million, one certificate will be issued with respect to each $500 million of principal amount, and an additional certificate will be issued with respect to any remaining principal amount of such issue. 2. DTC, the world’s largest securities depository, is a limited-purpose trust company organized under the New York Banking Law, a “banking organization” within the meaning of the New York Banking Law, a member of the Federal Reserve System, a “clearing corporation” within the meaning of the New York Uniform Commercial Code, and a “clearing agency” registered pursuant to the provisions of Section 17A of the Securities Exchange Act of 1934. DTC holds and provides asset servicing for over 3.5 million issues of U.S. and non-U.S. equity issues, corporate and municipal debt issues, and money market instruments (from over 100 countries) that DTC’s participants (“Direct Participants”) deposit with DTC. DTC also facilitates the post-trade settlement among Direct Participants of sales and other securities transactions in deposited securities, through electronic computerized book-entry transfers and pledges between Direct Participants’ accounts. This eliminates the need for physical movement of securities certificates. Direct Participants include both U.S. and non-U.S. securities brokers and dealers, banks, trust companies, clearing corporations, and certain other organizations. DTC is a wholly-owned subsidiary of The Depository Trust & Clearing Corporation (“DTCC”). DTCC is the holding Attachment 7 Page 441 of 858 F-2 company for DTC, National Securities Clearing Corporation and Fixed Income Clearing Corporation, all of which are registered clearing agencies. DTCC is owned by the users of its regulated subsidiaries. Access to the DTC system is also available to others such as both U.S. and non-U.S. securities brokers and dealers, banks, trust companies, and clearing corporations that clear through or maintain a custodial relationship with a Direct Participant, either directly or indirectly (“Indirect Participants”). DTC has a Standard & Poor’s rating of ___. The DTC Rules applicable to its Participants are on file with the Securities and Exchange Commission. More information about DTC can be found at www.dtcc.com. The information contained on this Internet site is not incorporated herein by reference. 3. Purchases of Securities under the DTC system must be made by or through Direct Participants, which will receive a credit for the Securities on DTC’s records. The ownership interest of each actual purchaser of each Security (“Beneficial Owner”) is in turn to be recorded on the Direct and Indirect Participants’ records. Beneficial Owners will not receive written confirmation from DTC of their purchase. Beneficial Owners are, however, expected to receive written confirmations providing details of the transaction, as well as periodic statements of their holdings, from the Direct or Indirect Participant through which the Beneficial Owner entered into the transaction. Transfers of ownership interests in the Securities are to be accomplished by entries made on the books of Direct and Indirect Participants acting on behalf of Beneficial Owners. Beneficial Owners will not receive certificates representing their ownership interests in Securities, except in the event that use of the book-entry system for the Securities is discontinued. 4. To facilitate subsequent transfers, all Securities deposited by Direct Participants with DTC are registered in the name of DTC’s partnership nominee, Cede & Co., or such other name as may be requested by an authorized representative of DTC. The deposit of Securities with DTC and their registration in the name of Cede & Co. or such other DTC nominee do not effect any change in beneficial ownership. DTC has no knowledge of the actual Beneficial Owners of the Securities; DTC’s records reflect only the identity of the Direct Participants to whose accounts such Securities are credited, which may or may not be the Beneficial Owners. The Direct and Indirect Participants will remain responsible for keeping account of their holdings on behalf of their customers. 5. Conveyance of notices and other communications by DTC to Direct Participants, by Direct Participants to Indirect Participants, and by Direct Participants and Indirect Participants to Beneficial Owners will be governed by arrangements among them, subject to any statutory or regulatory requirements as may be in effect from time to time. Beneficial Owners of Securities may wish to take certain steps to augment the transmission to them of notices of significant events with respect to the Securities, such as redemptions, tenders, defaults, and proposed amendments to the Security documents. For example, Beneficial Owners of Securities may wish to ascertain that the nominee holding the Securities for their benefit has agreed to obtain and transmit notices to Beneficial Owners. In the alternative, Beneficial Owners may wish to provide their names and addresses to the registrar and request that copies of notices be provided directly to them. 6. Redemption notices shall be sent to DTC. If less than all of the Securities within an issue are being redeemed, DTC’s practice is to determine by lot the amount of the interest of each Direct Participant in such issue to be redeemed. 7. Neither DTC nor Cede & Co. (nor any other DTC nominee) will consent or vote with respect to Securities unless authorized by a Direct Participant in accordance with DTC’s MMI Procedures. Under its usual procedures, DTC mails an Omnibus Proxy to Issuer as soon as possible after the record date. The Omnibus Proxy assigns Cede & Co.’s consenting or voting Attachment 7 Page 442 of 858 F-3 rights to those Direct Participants to whose accounts Securities are credited on the record date (identified in a listing attached to the Omnibus Proxy). 8. Redemption proceeds, distributions, and dividend payments on the Securities will be made to Cede & Co., or such other nominee as may be requested by an authorized representative of DTC. DTC’s practice is to credit Direct Participants’ accounts upon DTC’s receipt of funds and corresponding detail information from Issuer or Agent, on payable date in accordance with their respective holdings shown on DTC’s records. Payments by Participants to Beneficial Owners will be governed by standing instructions and customary practices, as is the case with securities held for the accounts of customers in bearer form or registered in “street name,” and will be the responsibility of such Participant and not of DTC, Agent, or Issuer, subject to any statutory or regulatory requirements as may be in effect from time to time. Payment of redemption proceeds, distributions, and dividend payments to Cede & Co. (or such other nominee as may be requested by an authorized representative of DTC) is the responsibility of Issuer or Agent, disbursement of such payments to Direct Participants will be the responsibility of DTC, and disbursement of such payments to the Beneficial Owners will be the responsibility of Direct and Indirect Participants. 9. DTC may discontinue providing its services as depository with respect to the Securities at any time by giving reasonable notice to Issuer or Agent. Under such circumstances, in the event that a successor depository is not obtained, Security certificates are required to be printed and delivered. 10. Issuer may decide to discontinue use of the system of book-entry-only transfers through DTC (or a successor securities depository). In that event, Security certificates will be printed and delivered to DTC. 11. The information in this section concerning DTC and DTC’s book-entry system has been obtained from sources that Issuer believes to be reliable, but Issuer takes no responsibility for the accuracy thereof. Attachment 7 Page 443 of 858 NRF DRAFT 11/10/21 103512921.2 1 $________ UKIAH PUBLIC FINANCING AUTHORITY LEASE REVENUE BONDS, SERIES 2022 (CAPITAL PROJECTS) BOND PURCHASE AGREEMENT _________, 2022 Ukiah Public Financing Authority 300 Seminary Avenue Ukiah, CA 95482 City of Ukiah 300 Seminary Avenue Ukiah, CA 95482 Ladies and Gentlemen: The undersigned Piper Sandler & Co. (the “Underwriter”) offers to enter into this Bond Purchase Agreement (this “Purchase Agreement”) with the Ukiah Public Financing Authority (the “Authority”) and the City of Ukiah, California (the “City”), which, upon the acceptance by the Authority and the City, will be binding upon the Authority, the City and the Underwriter. This offer is made subject to acceptance by the Authority and by the City by the execution of this Purchase Agreement and delivery of the same to the Underwriter prior to 11:59 P.M., California time, on the date hereof, and, if not so accepted, will be subject to withdrawal by the Underwriter upon notice delivered to the Authority and the City at any time prior to the acceptance hereof by the Authority and the City. Capitalized terms used herein and not otherwise defined shall have the meanings set forth in the Indenture (defined herein). Section 1. Purchase and Sale. Upon the terms and conditions and on the basis of the representations, warranties and agreements herein set forth, the Underwriter hereby agrees to purchase from the Authority, and the Authority hereby agrees to issue, sell and deliver to the Underwriter all (but not less than all) of the Ukiah Public Financing Authority Lease Revenue Bonds, Series 2022 (Capital Projects) (the “Bonds”). The Bonds shall be dated as of their date of delivery. Interest on the Bonds shall be payable semiannually on April 1 and October 1 of each year, commencing April 1, 2022 (each an “Interest Payment Date”), and will bear interest at the rates and on the dates as set forth in Exhibit A hereto. The purchase price for the Bonds shall be $_________ (which represents the principal amount of the Bonds in the amount of $_______, [plus a premium in the amount of $________], less an Underwriter’s discount of $_______). The City and Authority acknowledge and agree that: (i) the purchase and sale of the Bonds pursuant to this Purchase Agreement is an arm’s-length commercial transaction among the City, the Authority and the Underwriter; (ii) in connection therewith and with the discussions, undertakings and procedures leading up to the consummation of such transaction, the Underwriter is and has been acting solely as a principal and is not acting as a municipal advisor (as defined in Section 15B of the Securities Attachment 8 Page 444 of 858 103512921.2 2 Exchange Act of 1934, as amended), financial advisor or fiduciary; (iii) the Underwriter has not assumed an advisory or fiduciary responsibility in favor of the City or the Authority with respect to the offering contemplated hereby or the discussions, undertakings and procedures leading thereto (irrespective of whether the Underwriter has provided other services or is currently providing other services to the City or the Authority on other matters); and (iv) the City and the Authority have consulted their own legal, financial, municipal and other advisors to the extent they have deemed appropriate. Section 2. The Bonds. The Bonds shall be secured by the Revenues (as defined in the Indenture, dated as of January 1, 2022 (the “Indenture”), by and between the Authority and The Bank of New York Mellon Trust Company, N.A., as trustee (the “Trustee”)) consisting primarily of base rental payments (“Base Rental Payments”) to be paid by the City pursuant to the Lease Agreement, dated as of January 1, 2022 (the “Lease Agreement”), by and between the Authority and the City. The Authority’s right to receive the Base Rental Payments due under the Lease Agreement and to exercise remedies upon default under such Lease Agreement shall be assigned to the Trustee for the benefit of the owners of the Bonds pursuant to an Assignment Agreement, dated as of January 1, 2022 (the “Assignment Agreement”), by and between the Authority and the Trustee. The Bonds are being issued to (i) reconstruct the City’s corporation yard and construct improvements to various City streets, as described in the Official Statement; and (ii) fund the costs of issuance associated with the issuance and sale of the Bonds. Section 3. Public Offering and Establishment of Issue Price. The Underwriter agrees to make a bona fide initial public offering of all the Bonds at the public offering prices (or yields) set forth on Exhibit A attached hereto and incorporated herein by reference. Subsequent to the initial public offering, the Underwriter reserves the right to change the public offering prices (or yields) as they deem necessary in connection with the marketing of the Bonds, provided that the Underwriter shall not change the interest rates set forth on Exhibit A. The Bonds may be offered and sold to certain dealers at prices lower than such initial public offering prices. The Underwriter agrees to assist the Authority in establishing the issue price of the Bonds and shall execute and deliver to the Authority at Closing (as defined below) an “issue price” or similar certificate, together with the supporting pricing wires or equivalent communications, substantially in the form attached hereto as Exhibit B, with such modifications as may be appropriate or necessary, in the reasonable judgment of the Underwriter, the Authority and Bond Counsel (as defined below), to accurately reflect, as applicable, the sales price or prices or the initial offering price or prices to the public of the Bonds. The Authority will treat the first price at which 10% of each maturity of the Bonds (the “10% test”), identified as “10% Test Used” in Exhibit A, is sold to the public as the issue price of that maturity (if different interest rates apply within a maturity, each separate CUSIP number within that maturity will be subject to the 10% test). At or promptly after the execution of this Purchase Agreement, the Underwriter shall report to the Authority the price or prices at which it has sold to the public each maturity of Bonds. If at that time the 10% test has not been satisfied as to any maturity of the Bonds, the Underwriter agrees to promptly report to the Authority the prices at which it sells the unsold Bonds of that maturity to the public. That reporting obligation shall continue, whether or not the Closing Date (as defined below) has occurred, until the 10% test has been satisfied as to the Bonds of that maturity or until all Bonds of that maturity have been sold to the public. The Underwriter confirms that it has offered the Bonds to the public on or before the date of this Purchase Agreement at the offering price or prices (the “initial offering price”), or at the corresponding yield or yields, set forth in Exhibit A attached hereto, except as otherwise set forth therein. Exhibit A also Attachment 8 Page 445 of 858 103512921.2 3 sets forth, identified under the column “Hold the Offering Price Rule Used,” as of the date of this Purchase Agreement, the maturities, if any, of the Bonds for which the 10% test has not been satisfied and for which the Authority and the Underwriter agree that the restrictions set forth in the next sentence shall apply, which will allow the Authority to treat the initial offering price to the public of each such maturity as of the sale date as the issue price of that maturity (the “hold-the-offering-price rule”). So long as the hold-the-offering-price rule remains applicable to any maturity of the Bonds, the Underwriter will neither offer nor sell unsold Bonds of that maturity to any person at a price that is higher than the initial offering price to the public during the period starting on the sale date and ending on the earlier of the following: (i) the close of the fifth (5th) business day after the sale date; or (ii) the date on which the Underwriter has sold at least 10% of that maturity of the Bonds to the public at a price that is no higher than the initial offering price to the public. The Underwriter shall promptly advise the Authority when it has sold 10% of that maturity of the Bonds to the public at a price that is no higher than the initial offering price to the public, if that occurs prior to the close of the fifth (5th) business day after the sale date. The Underwriter acknowledges that sales of any Bonds to any person that is a related party to the Underwriter shall not constitute sales to the public for purposes of this section. Further, for purposes of this section: (i) “public” means any person other than an underwriter or a related party; (ii) “underwriter” means (A) any person that agrees pursuant to a written contract with the Authority (or with the lead underwriter to form an underwriting syndicate) to participate in the initial sale of the Bonds to the public and (B) any person that agrees pursuant to a written contract directly or indirectly with a person described in clause (A) to participate in the initial sale of the Bonds to the public (including a member of a selling group or a party to a retail distribution agreement participating in the initial sale of the Bonds to the public); (iii) a purchaser of any of the Bonds is a “related party” to an underwriter if the underwriter and the purchaser are subject, directly or indirectly, to (i) more than 50% common ownership of the voting power or the total value of their stock, if both entities are corporations (including direct ownership by one corporation of another), (ii) more than 50% common ownership of their capital interests or profits interests, if both entities are partnerships (including direct ownership by one partnership of another), or (iii) more than 50% common ownership of the value of the outstanding stock of the corporation or the capital interests or profit interests of the partnership, as applicable, if one entity is a corporation and the other entity is a partnership (including direct ownership of the applicable stock or interests by one entity of the other); and (iv) “sale date” means the date of execution of this Purchase Agreement by all parties. Section 4. The Official Statement. By their acceptance of this Purchase Agreement, the Authority and the City ratify, confirm and approve of the use and distribution by the Underwriter prior to the date hereof of the Preliminary Official Statement relating to the Bonds, dated _________, 2022 (including the cover page, all appendices and all information incorporated therein and any supplements or amendments thereto and as disseminated in its printed physical form or in electronic form in all respects materially consistent with such physical form, the “Preliminary Official Statement”) that authorized officers of the City and the Authority deemed “final” as of its date, for purposes of Rule 15c2-12 Attachment 8 Page 446 of 858 103512921.2 4 promulgated under the Securities Exchange Act of 1934, as amended (“Rule 15c2-12”) except for certain omissions permitted to be omitted therefrom by Rule 15c2-12. The Authority and the City hereby agree to deliver or cause to be delivered to the Underwriter, within seven (7) business days of the date hereof, copies of the final official statement, dated the date hereof, relating to the Bonds (including all information previously permitted to have been omitted by Rule 15c2-12, the cover page, all appendices, all information incorporated therein and any amendments or supplements as have been approved by the Authority, the City and the Underwriter (the “Official Statement”)) in such quantity as the Underwriter shall reasonably request to comply with Rule 15c2-12(b)(4) and the rules of the Municipal Securities Rulemaking Board (the “MSRB”). Section 5. Closing. At 8:30 a.m., California time, on ________, 2022, or at such other time or date as the Authority, the City and the Underwriter mutually agreed upon, the Authority shall deliver or cause to be delivered to the Trustee, and the Trustee shall deliver or cause to be delivered through the facilities of The Depository Trust Company, New York New York (“DTC”), the Bonds in definitive form, duly executed and authenticated. Concurrently with the delivery of the Bonds, the Authority and the City shall deliver the documents hereinafter mentioned at the offices of The Weist Law Firm, Los Gatos, California (“Bond Counsel”) or another place to be mutually agreed upon by the Authority, the City and the Underwriter. The Underwriter will accept such delivery and pay the purchase price of the Bonds as set forth in Section 1 hereof by wire transfer in immediately available funds. This payment for and delivery of the Bonds, together with the delivery of the aforementioned documents referenced herein, is called the “Closing.” The Bonds shall be registered in the name of Cede & Co., as nominee of DTC in denominations of $5,000 and any integral multiple thereof, and shall be made available to the Underwriter at least one (1) business day before the Closing for purposes of inspection and packaging. The Authority and the City acknowledge that the services of DTC will be used initially by the Underwriter to permit the issuance of the Bonds in book-entry form, and agree to cooperate fully with the Underwriter in employing such services. Section 6. Representations, Warranties and Covenants of the Authority. The Authority represents, warrants and covenants to the Underwriter and the City that: (a) The Authority is and will be at the date of Closing a joint exercise of powers authority organized and existing under the laws of the State of California (the “State”), including Section 6500 et seq. of the Government Code of the State of California (the “JPA Act”) with all necessary power and authority to enter into and perform its duties under the Site and Facility Lease, dated as of January 1, 2022 (the “Site Lease”), by and between the City and the Authority, the Lease Agreement, the Indenture, the Assignment Agreement, and this Purchase Agreement (collectively, the “Authority Documents”). (b) The Authority has complied with all filing requirements of the JPA Act. (c) By official action of the Authority prior to or concurrently with the acceptance hereof, the Authority has duly approved the distribution of the Preliminary Official Statement and the distribution of the Official Statement (including in electronic form), and has duly authorized and approved the execution and delivery of, and the performance by the Authority of the obligations on its part contained, in the Authority Documents. When executed and delivered, each Authority Document will constitute the legal, valid and binding obligation of the Authority enforceable in accordance with its terms, except as enforcement may be limited by bankruptcy, insolvency, reorganization, moratorium or similar laws or equitable principles relating to or affecting creditors’ rights generally. Attachment 8 Page 447 of 858 103512921.2 5 (d) Prior to the date hereof, the Authority has provided to the Underwriter for its review the Preliminary Official Statement that an authorized officer of the Authority has deemed final for purposes of Rule 15c2-12, has approved the distribution of the Preliminary Official Statement and the Official Statement and has duly authorized the execution and delivery of the Official Statement (including in electronic form). The Preliminary Official Statement, at the date thereof, did not contain any untrue statement of a material fact or omit to state any material fact necessary to make the statements therein (other than the information relating to DTC and its book-entry system, as to which no view is expressed), in light of the circumstances under which they were made, not misleading. As of the date hereof and on the Closing, the final Official Statement did not and will not contain any untrue statement of a material fact or omit to state any material fact necessary to make the statements therein (other than the information relating to DTC and its book-entry system, as to which no view is expressed), in light of the circumstances under which they were made, not misleading. (e) The execution and delivery by the Authority of the Authority Documents and the approval and execution by the Authority of the Official Statement and compliance with the provisions on the Authority’s part contained in the Authority Documents, will not conflict with or constitute a breach of or default under any law, administrative regulation, judgment, decree, loan agreement, indenture, bond, note, resolution, agreement or other instrument to which the Authority is a party or is otherwise subject to, which conflict, breach or default has or may have a material adverse effect on the ability of the Authority to carry out its obligations under the Authority Documents, nor will any such execution, delivery, adoption or compliance result in the creation or imposition of any material lien, charge or other security interest or encumbrance of any nature whatsoever upon any of the properties or assets of the Authority under the terms of any such law, administrative regulation, judgment, decree, loan agreement, indenture, trust agreement, bond, note, resolution, agreement or other instrument, except as provided by the Authority Documents. (f) The Authority will advise the Underwriter promptly of any proposal to amend or supplement the Official Statement and will not effect or consent to any such amendment or supplement without the consent of the Underwriter, which consent will not be unreasonably withheld. The Authority will advise the Underwriter promptly of the institution of any proceedings known to it by any governmental agency prohibiting or otherwise affecting the use of the Official Statement in connection with the offering, sale or distribution of the Bonds. (g) The Authority is not in breach of or default under any applicable law or administrative regulation of the State or the United States of America or any applicable judgment or decree or any loan agreement, indenture, trust agreement, bond, note, resolution, agreement or other instrument to which the Authority is a party or is otherwise subject, and no event has occurred and is continuing which, with the passage of time or the giving of notice, or both, would constitute a default or an event of default under any such instrument, in each case which breach or default has or may have a material adverse effect on the ability of the Authority to perform its obligations under the Authority Documents. (h) As of the time of acceptance hereof and as of the date of Closing, no action, suit, proceeding, inquiry or investigation, at law or in equity, before or by any court, government agency, public board or body, is pending with respect to which the Authority has been served or, to the best knowledge of the officers of the Authority, threatened (i) in any way questioning the corporate existence of the Authority or the titles of the officers of the Authority to their respective offices, (ii) affecting, contesting or seeking to prohibit, restrain or enjoin the execution or delivery of any of the Bonds, or in any way contesting or affecting the validity of the Bonds or the Authority Documents or the consummation of the transactions contemplated thereby, or contesting the exclusion of the interest on the Bonds from gross income for federal income tax purposes or contesting the powers of the Authority to Attachment 8 Page 448 of 858 103512921.2 6 enter into the Authority Documents or (iii) contesting the completeness or accuracy of the Preliminary Official Statement or the Official Statement or any supplement or amendment thereto or asserting that the Preliminary Official Statement or the Official Statement contained any untrue statement of a material fact or omitted to state any material fact required to be stated therein or necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading, and there is no basis for any action, suit, proceeding, inquiry or investigation of the nature described in clause (i) through (iii) of this sentence. (i) Any certificate signed by any officer of the Authority authorized to execute such certificate in connection with the issuance, sale and delivery of the Bonds and delivered to the Underwriter shall be deemed a representation and warranty of the Authority to the Underwriter and the City as to the statements made therein but not of the person signing such certificate. (j) The Authority will apply the proceeds of the Bonds in accordance with the Indenture. Section 7. Representations, Warranties and Covenants of the City. The City represents, warrants and covenants to the Underwriter and the Authority that: (a) The City is and will be at the date of Closing a municipal corporation and duly organized and existing pursuant to and under the Constitution and laws of the State and has all necessary power and authority to enter into and perform its duties under the Continuing Disclosure Certificate relating to the Bonds (the “Continuing Disclosure Certificate”), the Site Lease, the Lease Agreement, and this Purchase Agreement (collectively, the “City Documents” and, together with the Authority Documents, the “Legal Documents”) and has by official action duly authorized and approved the execution and delivery of, and the performance by the City of the obligations on its part contained in the City Documents. (b) By official action of the City prior to or concurrently with the acceptance hereof, the City has duly approved the distribution of the Preliminary Official Statement and the distribution of the Official Statement (including in electronic form), and has duly authorized and approved the execution and delivery of, and the performance by the City of the obligations on its part contained, in the City Documents. When executed and delivered, each City Document will constitute the legally valid and binding obligation of the City enforceable in accordance with its terms, except as enforcement may be limited by bankruptcy, insolvency, reorganization, moratorium or similar laws or equitable principles relating to or affecting creditors’ rights generally. (c) The Preliminary Official Statement heretofore delivered to the Underwriter is hereby deemed final by the City as of its date and as of the date hereof, except for the omission of such information as is permitted to be omitted in accordance with paragraph (b)(i) of Rule 15c2-12. The Preliminary Official Statement, at the date thereof, did not contain any untrue statement of a material fact or omit to state any material fact necessary to make the statements therein (other than the information relating to DTC and its book-entry system, as to which no view is expressed), in the light of the circumstances under which they were made, not misleading. As of the date hereof and on the Closing, the final Official Statement did not and will not contain any untrue statement of a material fact or omit to state any material fact necessary to make the statements therein (other than the information relating to DTC and its book-entry system, as to which no view is expressed), in the light of the circumstances under which they were made, not misleading. (d) The execution and delivery by the City of the City Documents and the approval by the City of the Official Statement and compliance with the provisions on the City’s part contained in Attachment 8 Page 449 of 858 103512921.2 7 the City Documents, will not conflict with or constitute a breach of or default under any law, administrative regulation, judgment, decree, loan agreement, indenture, trust agreement, bond, note, resolution, agreement or other instrument to which the City is a party or is otherwise subject to, which conflict, breach or default has or may have a material adverse effect on the ability of the City to carry out its obligations under the City Documents, nor will any such execution, delivery, adoption or compliance result in the creation or imposition of any material lien, charge or other security interest or encumbrance of any nature whatsoever upon any of the properties or assets of City under the terms of any such law, administrative regulation, judgment, decree, loan agreement, indenture, trust agreement, bond, note, resolution, agreement or other instrument, except as provided by the City Documents. (e) The City will advise the Underwriter promptly of any proposal to amend or supplement the Official Statement and will not effect or consent to any such amendment or supplement without the consent of the Underwriter, which consent will not be unreasonably withheld. The City will advise the Underwriter promptly of the institution of any proceedings known to it by any governmental authority prohibiting or otherwise affecting the use of the Official Statement in connection with the offering, sale or distribution of the Bonds. (f) The City is not in breach of or default under any applicable law or administrative regulation of the State or the United States of America or any applicable judgment or decree or any loan agreement, indenture, bond, note, resolution, agreement or other instrument to which the City is a party or is otherwise subject, and no event has occurred and is continuing which, with the passage of time or the giving of notice, or both, would constitute a default or an event of default under any such instrument, in each case which breach or default has or may have a material adverse effect on the ability of the City to perform its obligations under the City Documents. (g) The financial statements relating to the receipts, expenditures and cash balances of the City as of June 30, 2021 as set forth in the Official Statement fairly represent the receipts, expenditures and cash balances of the General Fund. Except as disclosed in the Preliminary Official Statement, the Official Statement or otherwise disclosed in writing to the Underwriter, there has not been any materially adverse change in the financial condition of the General Fund or in its operations since June 30, 2019 and, except as disclosed in the Preliminary Official Statement, the Official Statement or otherwise disclosed in writing to the Underwriter, there has been no occurrence, circumstance or combination thereof which is reasonably expected to result in any such materially adverse change. (h) As of the time of acceptance hereof and as of the date of Closing, no action, suit, proceeding, inquiry or investigation, at law or in equity, before or by any court, government agency, public board or body, is pending or, to the knowledge of the officers of the City, threatened (i) in any way questioning the corporate existence of the City or the titles of the officers of the City to their respective offices; (ii) affecting, contesting or seeking to prohibit, restrain or enjoin the execution or delivery of any of the Bonds, or in any way contesting or affecting the validity of the Bonds or the City Documents or the consummation of the transactions contemplated thereby, or contesting the exclusion of the interest on the Bonds from gross income for federal income tax purposes or contesting the power of the City to enter into the City Documents; (iii) which may result in any material adverse change to the financial condition of the City or to its ability to pay the Base Rental Payments when due; or (iv) contesting the completeness or accuracy of the Preliminary Official Statement or the Official Statement or any supplement or amendment thereto or asserting that the Preliminary Official Statement or the Official Statement contained any untrue statement of a material fact or omitted to state any material fact required to be stated therein or necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading, and there is no basis for any action, suit, proceeding, inquiry or investigation of the nature described in clause (i) through (iv) of this sentence. Attachment 8 Page 450 of 858 103512921.2 8 (i) To the extent required by law, the City will undertake, pursuant to the Continuing Disclosure Certificate, to provide annual reports and notices of certain events. A description of this undertaking is set forth in the Preliminary Official Statement and will also be set forth in the final Official Statement. Except as otherwise disclosed in the Preliminary Official Statement, the City has not failed to comply in all material respects with any previous undertakings with regard to the Rule 15c2-12 to provide annual reports or notices of enumerated events in the past five years. (j) Any certificate signed by any officer of the City authorized to execute such certificate in connection with the issuance, sale and delivery of the Bonds and delivered to the Underwriter shall be deemed a representation and warranty of the City to the Underwriter and the Authority as to the statements made therein but not of the person signing such certificate. (k) As of the date hereof, the City does not have any material obligations secured by payments from the General Fund of the City, except as disclosed in the Official Statement. Section 8. Conditions to the Obligations of the Underwriter. The Underwriter has entered into this Purchase Agreement in reliance upon the representations and warranties of the Authority and the City contained herein. The obligations of the Underwriter to accept delivery of and pay for the Bonds on the date of the Closing shall be subject, at the option of the Underwriter, to the accuracy in all respects of the statements of the officers and other officials of the Authority and of the City, as well as authorized representatives of Bond Counsel, Disclosure Counsel and the Trustee made in any Bonds or other documents furnished pursuant to the provisions hereof; to the performance by the Authority and the City of their obligations to be performed hereunder at or prior to the date of the Closing; and to the following additional conditions: (a) The representations, warranties and covenants of the City and the Authority contained herein shall be true, complete and correct at the date hereof and at the time of the Closing, as if made on the date of the Closing; (b) At the time of Closing, the Legal Documents shall be in full force and effect as valid and binding agreements between or among the various parties thereto, and the Legal Documents and the Official Statement shall not have been amended, modified or supplemented except as may have been agreed to in writing by the Underwriter, and all such reasonable actions as, in the opinion of Bond Counsel, shall reasonably deem necessary in connection with the transactions contemplated hereby; (c) At the time of the Closing, no default shall have occurred or be existing under the Authority Documents, the City Documents, or any other agreement or document pursuant to which any of the City’s financial obligations were executed and delivered, and the City shall not be in default in the payment of principal or interest with respect to any of its financial obligations, which default would adversely impact the ability of the City to make the Base Rental Payments; (d) In recognition of the desire of the Authority, the City and the Underwriter to effect a successful public offering of the Bonds, and in view of the potential adverse impact of any of the following events on such a public offering, this Purchase Agreement shall be subject to termination in the absolute discretion of the Underwriter by notification, in writing, to the Authority and the City prior to delivery of and payment for the Bonds, if at any time prior to such time, regardless of whether any of the following statements of fact were in existence or known of on the date of this Purchase Agreement: (i) any event shall occur which makes untrue any statement or results in an omission to state a material fact necessary to make the statements in the Official Statement, in the light of the circumstances under which they were made, not misleading, Attachment 8 Page 451 of 858 103512921.2 9 which event, in the reasonable opinion of the Underwriter would materially or adversely affect the ability of the Underwriter to market the Bonds; or (ii) the marketability of the Bonds or the market price thereof, in the reasonable opinion of the Underwriter, has been materially adversely affected by an amendment to the Constitution of the United States of America or by any legislation in or by the Congress of the United States of America or by the State, or the amendment of legislation pending as of the date of this Purchase Agreement in the Congress of the United States of America, or the recommendation to Congress or endorsement for passage (by press release, other form of notice or otherwise) of legislation by the President of the United States of America, the Treasury Department of the United States of America, the Internal Revenue Service or the Chairman or ranking minority member of the Committee on Finance of the United States Senate or the Committee on Ways and Means of the United States House of Representatives, or the proposal for consideration of legislation by either such Committee or by any member thereof, or the presentment of legislation for consideration as an option by either such Committee, or by the staff of the Joint Committee on Taxation of the Congress of the United States of America, or the favorable reporting for passage of legislation to either House of the Congress of the United States of America by a Committee of such House to which such legislation has been referred for consideration, or any decision of any federal or state court or any ruling or regulation (final, temporary or proposed) or official statement on behalf of the United States Treasury Department, the Internal Revenue Service or other federal or State authority affecting the federal or State tax status of the Authority or the City, or the interest on or with respect to bonds or notes (including the Bonds); or (iii) any legislation, ordinance, rule or regulation shall be introduced in, or be enacted by any governmental body, department or agency of the State, or a decision by any court of competent jurisdiction within the State shall be rendered which materially adversely affects the market price of the Bonds; or (iv) an order, decree or injunction issued by any court of competent jurisdiction, or order, ruling, regulation (final, temporary or proposed), official statement or other form of notice or communication issued or made by or on behalf of the Securities and Exchange Commission, or any other governmental agency having jurisdiction of the subject matter, to the effect that: (i) obligations of the general character of the Bonds, or the Bonds, including any or all underlying arrangements, are not exempt from registration under the Securities Act of 1933, as amended, or that the Indenture is not exempt from qualification under the Trust Indenture Act of 1939, as amended; or (ii) the issuance, offering or sale of obligations of the general character of the Bonds, or the issuance, offering or sale of the Bonds, including any or all underlying obligations, as contemplated hereby or by the Official Statement, is or would be in violation of the federal securities laws as amended and then in effect; or (v) legislation shall be enacted by the Congress of the United States of America, or a decision by a court of the United States of America shall be rendered, to the effect that obligations of the general character of the Bonds, or the Bonds are not exempt from registration under or other requirements of the Securities Act of 1933, as amended and as then in effect, or the Securities Exchange Act of 1934, as amended and as then in effect, or that the Indenture is not exempt from qualification under or other requirements of the Trust Indenture Act of 1939, as amended and as then in effect; or Attachment 8 Page 452 of 858 103512921.2 10 (vi) additional material restrictions not in force as of the date hereof shall have been imposed upon trading in securities generally by any domestic governmental authority or by any domestic national securities exchange, which are material to the marketability of the Bonds; or (vii) a general banking moratorium shall have been declared by federal, State or New York authorities, or the general suspension of trading on any national securities exchange; or (viii) there shall have occurred any outbreak or escalation of hostilities, declaration by the United States of America of a national emergency or war or other calamity or crisis the effect of which on financial markets is materially adverse such as to make it, in the sole judgment of the Underwriter, impractical to proceed with the purchase or delivery of the Bonds as contemplated by the final Official Statement (exclusive of any amendment or supplement thereto); or (ix) any rating of the Bonds or the rating of any obligations of the City secured by the City’s general fund shall have been downgraded or withdrawn by a national rating service, which, in the reasonable opinion of the Underwriter, materially adversely affects the market price of the Bonds; or (x) the commencement of any action, suit or proceeding described in Section 6(h) or Section 7(h); (e) at or prior to the Closing, the Underwriter shall receive the following documents, in each case to the reasonable satisfaction in form and substance of the Underwriter: (i) all resolutions relating to the Bonds adopted by the Authority and certified by an authorized official of the Authority authorizing the execution and delivery of the Bonds, the Authority Documents and the Official Statement; (ii) all resolutions relating to the Bonds adopted by the City and certified by an authorized official of the City authorizing the execution and delivery of the City Documents and the delivery of the Bonds and the Official Statement; (iii) the Legal Documents duly executed and delivered by the respective parties thereto, with only such amendments, modifications or supplements as may have been agreed to in writing by the Underwriter; (iv) the approving opinion of Bond Counsel, dated the date of Closing and addressed to the Authority and the City, in substantially the form attached as Appendix E to the Official Statement, together with a reliance letter thereon addressed to the Underwriter; (v) a supplemental opinion of Bond Counsel dated the date of Closing and addressed to the Underwriter, to the effect that: (A) the statements on the cover of the Official Statement and in the Official Statement under the captions “INTRODUCTION,” “THE BONDS,” “SECURITY FOR THE BONDS,” and “TAX MATTERS,” and in APPENDIX A – “SUMMARY OF PRINCIPAL LEGAL DOCUMENTS,” Attachment 8 Page 453 of 858 103512921.2 11 APPENDIX C – “FORM OF CONTINUING DISCLOSURE CERTIFICATE” and APPENDIX E – “FORM OF OPINION OF BOND COUNSEL,” and excluding any material that may be treated as included under such captions and appendices by any cross-reference, insofar as such statements expressly summarize provisions of the Bonds, the Site Lease, the Lease Agreement, the Assignment Agreement, the Indenture, and Bond Counsel’s final opinion concerning the Bonds, are accurate in all material respects as of the date of Closing. (B) the Purchase Agreement has been duly authorized, executed and delivered by the Authority and the City and is the valid, legal and binding agreement of the Authority and the City enforceable in accordance with its terms, except that the rights and obligations under the Purchase Agreement are subject to bankruptcy, insolvency, reorganization, moratorium, fraudulent conveyance and other similar laws affecting creditors’ rights, to the application of equitable principles if equitable remedies are sought, to the exercise of judicial discretion in appropriate cases and to limitations on legal remedies against public agencies in the State. (C) the Bonds are not subject to the registration requirements of the Securities Act of 1933, as amended, and the Indenture is exempt from qualification under the Trust Indenture Act of 1939, as amended. (vi) the Official Statement, executed on behalf of the Authority and the City; (vii) evidence that the Bonds have received an underlying rating of “___” by S&P Global Ratings; (viii) a certificate, dated the date of Closing, signed by a duly authorized officer of the Authority satisfactory in form and substance to the Underwriter to the effect that: (i) the representations, warranties and covenants of the Authority contained in this Purchase Agreement are true and correct in all material respects on and as of the date of Closing with the same effect as if made on the date of the Closing by the Authority, and the Authority has complied with all of the terms and conditions of this Purchase Agreement required to be complied with by the Authority at or prior to the date of Closing; (ii) to the best of such officer’s knowledge, no event affecting the Authority has occurred since the date of the Official Statement which should be disclosed in the Official Statement for the purposes for which it is to be used or which is necessary to disclose therein in order to make the statements and information therein not misleading in any material respect; (iii) the information and statements contained in the Official Statement (other than information relating to DTC and its book-entry system) did not as of its date and do not as of the Closing contain an untrue statement of a material fact or omit to state any material fact necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading in any material respect; and (iv) the Authority is not in breach of or default under any applicable law or administrative regulation of the State or the United States of America or any applicable judgment or decree or any loan agreement, indenture, bond, note, resolution, agreement or other instrument to which the Authority is a party or is otherwise subject, which would have a material adverse impact on the Authority’s ability to perform its obligations under the Authority Documents, and no event has occurred and is continuing which, with the Attachment 8 Page 454 of 858 103512921.2 12 passage of time or the giving of notice, or both, would constitute such a default or an event of default under any such instrument; (ix) a certificate, dated the date of Closing, signed by a duly authorized officer of the City satisfactory in form and substance to the Underwriter to the effect that: (i) the representations, warranties and covenants of the City contained in this Purchase Agreement are true and correct in all material respects on and as of the date of Closing with the same effect as if made on the date of the Closing by the City, and the City has complied with all of the terms and conditions of the Purchase Agreement required to be complied with by the City at or prior to the date of Closing; (ii) to the best of such officer’s knowledge, no event affecting the City has occurred since the date of the Official Statement which should be disclosed in the Official Statement for the purposes for which it is to be used or which is necessary to disclose therein in order to make the statements and information therein not misleading in any material respect; (iii) the information and statements contained in the Official Statement (other than information relating to DTC and its book-entry system) did not as of its date and do not as of the Closing contain an untrue statement of a material fact or omit to state any material fact necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading in any material respect; (iv) the City is not in breach of or default under any applicable law or administrative regulation of the State or the United States of America or any applicable judgment or decree or any loan agreement, indenture, bond, note, resolution, agreement (including but not limited to the Lease Agreement) or other instrument to which the City is a party or is otherwise subject, which would have a material adverse impact on the City’s ability to perform its obligations under the City Documents, and no event has occurred and is continuing which, with the passage of time or the giving of notice, or both, would constitute such a default or an event of default under any such instrument; and (v) no further consent is required for inclusion of its audited financial statements in the Official Statement; (x) an opinion dated the date of Closing and addressed to the Underwriter, the Trustee and Bond Counsel, of the Office of the City Attorney of the City, as Counsel to the Authority, to the effect that: (A) the Authority is a joint exercise of powers authority organized and existing under the laws of the State of California; (B) the resolution of the Authority approving and authorizing the execution and delivery of the Authority Documents, the Bonds and the Official Statement and other actions of the Authority was duly adopted at a meeting of the governing body of the Authority which was called and held pursuant to law and with all public notice required by law and at which a quorum was present and acting throughout, and the resolution is now in full force and effect and has not been amended or superseded in any way; (C) there is no action, suit, proceeding, inquiry or investigation at law or in equity before or by any court or public body pending with respect to which the Authority has been served or, to the best of such counsel’s knowledge, threatened against or affecting the Authority, except as may be disclosed in the Official Statement, which would materially adversely impact the Authority’s ability to complete the transactions contemplated by the Authority Documents, the Official Statement or any other document or certificate related to such Attachment 8 Page 455 of 858 103512921.2 13 transactions, restrain or enjoin the collection of Base Rental Payments with respect to the Lease Agreement, or in any way contesting or affecting the validity of the Bonds, the Official Statement, the Authority Documents or the transactions described in and contemplated thereby wherein an unfavorable decision, ruling or finding would materially adversely affect the validity and enforceability of the Bonds or the Authority Documents or in which a final adverse decision could materially adversely affect the operations of the Authority; (D) the execution and delivery of the Authority Documents and the issuance of the Bonds and compliance with the provisions thereof, do not and will not in any material respect conflict with or constitute on the part of the Authority a breach of or default under any agreement or other instrument to which the Authority is a party or by which it is bound or any existing law, regulation, court order or consent decree to which the Authority is subject, which breach or default has or may have a material adverse effect on the ability of the Authority to perform its obligations under the Authority Documents; and (E) no authorization, approval, consent, or other order of the State of California or any other governmental body within the State of California is required for the valid authorization, execution and delivery of the Authority Documents or the Official Statement by the Authority or the consummation by the Authority of the transactions on its part contemplated therein, except such as have been obtained and except such as may be required under state securities or blue sky laws in connection with the purchase and distribution of the Bonds by the Underwriter. (xi) an opinion dated the date of Closing and addressed to the Underwriter, the Trustee and the Bond Counsel, of the Office of the City Attorney of the City, to the effect that: (A) the City is a municipal corporation duly organized and validly existing under the Constitution and laws of the State of California; (B) the resolution of the City approving and authorizing the execution and delivery of the City Documents and approving and authorizing the issuance of the Bonds and the delivery of the Official Statement and other actions of the City was duly adopted at a meeting of the governing body of the City which was called and held pursuant to law and with all public notice required by law and at which a quorum was present and acting throughout, and the resolution is now in full force and effect and has not been amended or superseded in any way; (C) there is no action, suit, proceeding, inquiry or investigation at law or in equity before or by any court or public body pending with respect to which the City has been served or, to the best of such City Attorney’s knowledge, threatened against or affecting the City, except as may be disclosed in the Official Statement, which would materially adversely impact the City’s ability to complete the transactions contemplated by the City Documents, the Official Statement or any other document or certificate related to such transactions, restrain or enjoin the collection of Base Rental Payments with respect to the Attachment 8 Page 456 of 858 103512921.2 14 Lease Agreement, or in any way contesting or affecting the validity of the Bonds, the Official Statement or the City Documents; (D) the execution and delivery of the City Documents and compliance with the provisions thereof, do not and will not in any material respect conflict with or constitute on the part of the City a breach of or default under any agreement or other instrument to which the City is a party or by which it is bound or any existing law, regulation, court order or consent decree to which the City is subject, which breach or default has or may have a material adverse effect on the ability of the City to perform its obligations under the City Documents; and (E) no authorization, approval, consent, or other order of the State of California or any other governmental body within the State of California is required for the valid authorization, execution and delivery of the City Documents or the consummation by the City of the transactions on its part contemplated therein, except such as have been obtained and except such as may be required under state securities or blue sky laws in connection with the purchase and distribution of the Bonds by the Underwriter. (xii) an opinion of Jones Hall, A Professional Law Corporation, San Francisco, California, Disclosure Counsel to the Authority and the City dated the date of Closing and addressed to the Authority, the City, the Underwriter in the form set forth in Exhibit C; (xiii) an opinion of counsel to the Trustee, addressed to the Underwriter and the Authority, dated the date of the Closing, to the effect that: (A) the Trustee is a national banking association duly organized and validly existing under the laws of the United States of America, having full corporate power to undertake the trust created under the Indenture; (B) the Indenture and the Assignment Agreement (together, the “Trustee Documents”) have each been duly authorized, executed and delivered by the Trustee and, assuming due authorization, execution and delivery by the other parties thereto, the Trustee Documents constitute the valid, legal and binding obligations of the Trustee enforceable in accordance with their terms, except as enforcement thereof may be limited by bankruptcy, insolvency or other laws affecting the enforcement of creditors’ rights generally and by the application of equitable principles, if equitable remedies are sought; (C) the Trustee has duly authenticated the Bonds upon the order of Authority; (D) the Trustee’s actions in executing and delivering the Trustee Documents are in full compliance with, and do not conflict with any applicable law or governmental regulation and, to the best of such counsel’s knowledge, after reasonable inquiry with respect thereto, do not conflict with or violate any contract to which the Trustee is a party or any administrative or judicial decision by which the Trustee is bound; and Attachment 8 Page 457 of 858 103512921.2 15 (E) no consent, approval, authorization or other action by any governmental or regulatory authority having jurisdiction over the banking or trust powers of the Trustee that has not been obtained is or will be required for the execution and delivery of the Bonds or the consummation by the Trustee of its obligations under the Trustee Documents. (xiv) a certificate, dated the date of Closing, signed by a duly authorized officer of the Trustee satisfactory in form and substance to the Underwriter, to the effect that: (A) the Trustee is duly organized and existing as a national banking association under the laws of the United States of America, having the full corporate power and authority to enter into and perform its duties under the Trustee Documents; (B) the Trustee is duly authorized to enter into the Trustee Documents and has duly executed and delivered the Trustee Documents, and assuming due authorization and execution by the other parties thereto, the Trustee Documents are legal, valid and binding upon the Trustee and enforceable against such party in accordance with its terms; (C) the Trustee has duly authenticated the Bonds under the Indenture and delivered the Bonds to or upon the order of the Underwriter; (D) no consent, approval, authorization or other action by any governmental or regulatory authority having jurisdiction over the banking or trust powers of the Trustee that has not been obtained is required for the execution and delivery of the Bonds or the consummation by the Trustee of its obligations under the Trustee Documents; and (E) to the knowledge of the Trustee, there is no action, suit, proceeding, inquiry or investigation at law or in equity before or by any court or public body pending or threatened against or affecting the Trustee, which would materially adversely impact the Trustee’s ability to complete the transactions contemplated by the Trustee Documents. (xv) the preliminary and final forms required to be delivered to the California Debt and Investment Advisory Commission pursuant to Section 53583 of the Government Code of the State of California and Section 8855(i) and (j) of the Government Code; (xvi) a copy of the executed Blanket Issuer Letter of Representations by and between the Authority and DTC relating to the book-entry system; (xvii) the tax and nonarbitrage certificate by the Authority and the City in form and substance to the reasonable satisfaction of Bond Counsel, the Underwriter and Norton Rose Fulbright US LLP (“Underwriter’s Counsel”); (xviii) a Certificate of the City’s engineer documenting the value of the streets serving as the Leased Facilities in form and substance acceptable to the Underwriter; Attachment 8 Page 458 of 858 103512921.2 16 (xix) an opinion of Underwriter’s Counsel in form and substance acceptable to the Underwriter; (xx) a Rule 15c2-12 certificate, dated the date of the Preliminary Official Statement, of the City; (xxi) a Rule 15c2-12 certificate, dated the date of the Preliminary Official Statement, of the Authority; (xxii) a certified copies of the Joint Exercise of Powers Agreement establishing the Authority, and all amendments thereto, and related certificates issued by the Secretary of State of the State; and (xxiii) such additional legal opinions, Bonds, proceedings, instruments or other documents as the Underwriter or Underwriter’s Counsel may reasonably request. Section 9. Changes in Official Statement. Within 90 days after the Closing or within 25 days following the “end of the underwriting period” (as defined in Rule 15c2-12), whichever occurs first, if any event relating to or affecting the Bonds, the Trustee, the City or the Authority shall occur as a result of which it is necessary, in the reasonable opinion of the Underwriter, to amend or supplement the Official Statement in order to make the Official Statement not misleading in any material respect in the light of the circumstances existing at the time it is delivered to a purchaser, the Authority will forthwith prepare and furnish to the Underwriter an amendment or supplement that will amend or supplement the Official Statement so that it will not contain an untrue statement of a material fact or omit to state a material fact necessary in order to make the statements therein, in the light of the circumstances existing at the time the Official Statement is delivered to purchaser, not misleading. The City and the Authority shall cooperate with the Underwriter in the filing by the Underwriter of such amendment or supplement to the Official Statement with the MSRB. The Underwriter acknowledges that the “end of the underwriting period” will be the date of Closing unless the Underwriter otherwise notifies the City in writing that it still owns some or all of the Bonds. Section 10. Expenses. (a) Whether or not the Underwriter accepts delivery of and pays for the Bonds as set forth herein, it shall be under no obligation to pay, and the Authority shall pay, or cause the City to pay, out of the proceeds of the Bonds or any other legally available funds of the City or the Authority, all expenses incidental to the performance of the Authority’s obligations hereunder, including but not limited to the cost of printing and delivering the Legal Documents to the Underwriter; the costs of printing and shipping and electronic distribution of the Preliminary Official Statement and the Official Statement in reasonable quantities; the fees and disbursements of the Authority, the Trustee and its counsel, Bond Counsel, Authority Counsel, the City Attorney, accountants, engineers, appraisers, economic consultants and any other experts or consultants retained by the City or the Authority in connection with the issuance and sale of the Bonds; rating agency fees; advertising expenses; and any other expenses not specifically enumerated in paragraph (b) of this Section incurred in connection with the issuance and sale of the Bonds. The Authority shall pay, or cause the City to pay out of the proceeds of the Bonds, for any expenses incurred by the Underwriter on behalf of the City’s or the Authority’s employees and representatives which are incidental to implementing this Purchase Agreement, including, but not limited to, meals, transportation, and lodging of those employees and representatives. (b) Whether or not the Bonds are delivered to the Underwriter as set for herein, the Authority shall be under no obligation to pay, and the Underwriter shall be responsible for and pay (which may be included as an expense component of the Underwriter’s discount), MSRB, CUSIP Bureau and CDIAC fees and expenses to qualify the Bonds for sale under any “blue sky” laws; and all other expenses incurred Attachment 8 Page 459 of 858 103512921.2 17 by the Underwriter in connection with its public offering and distribution of the Bonds not specifically enumerated in paragraph (a) of this Section, including the cost of preparing this Purchase Contract and other Underwriter documents, travel expenses and the fees and disbursements of Underwriter’s Counsel. Section 11. Notices. Any notice or other communication to be given to the Underwriter under this Purchase Agreement may be given by delivering the same in writing to Piper Sandler & Co., 50 California Street, Suite 3100, San Francisco, CA 94111, Attention: Ralph J. Holmes, Managing Director. Any notice or communication to be given the Authority under this Purchase Agreement may be given by delivering the same in writing to the City at the address below, Attention: Executive Director. Any notice or communication to be given the City under this Purchase Agreement may be given by delivering the same in writing to the City of Ukiah, 300 Seminary Avenue, Ukiah, CA 95482, Attention: City Manager. All notices or communications hereunder by any party shall be given and served upon each other party. Section 12. Parties in Interest. This Purchase Agreement is made solely for the benefit of the Authority, the City and the Underwriter (including the successors or assigns thereof) and no other person shall acquire or have any right hereunder or by virtue hereof. All representations, warranties and agreements of the Authority and the City in this Purchase Agreement shall remain operative and in full force and effect regardless of any investigation made by or on behalf of the Underwriter and shall survive the delivery of and payment for the Bonds. Section 13. Counterparts. This Purchase Agreement may be executed by the parties hereto in separate counterparts, each of which when so executed and delivered shall be an original, but all such counterparts shall together constitute but one and the same instrument. [Remainder of page intentionally left blank.] Attachment 8 Page 460 of 858 NRF DRAFT 11/10/21 Section 14. Governing Law. This Purchase Agreement shall be governed by and construed in accordance with the laws of the State. PIPER SANDLER & CO. By: Ralph J. Holmes Managing Director Accepted: UKIAH PUBLIC FINANCING AUTHORITY By: Sage Sangiacomo, Executive Director Time of Execution: ____:____ Accepted: CITY OF UKIAH By: Sage Sangiacomo, City Manager Time of Execution: ____:____ Attachment 8 Page 461 of 858 103512921.2 A-1 EXHIBIT A MATURITY SCHEDULE Maturity Date Principal Amount Interest Rate Yield Price 10% Test Used Hold-the- Offering Price Rule Used $_______ _____% Term Bonds due April 1, 20__ Yield: ___%; Price: ____ $________ ____% Term Bonds due April 1, 20__ Yield: ____%; Price: _____ __________________ [* Priced to the first redemption date at par.] Attachment 8 Page 462 of 858 103512921.2 B-1 EXHIBIT B $__________ UKIAH PUBLIC FINANCING AUTHORITY LEASE REVENUE BONDS, SERIES 2022 (CAPITAL PROJECTS) ISSUE PRICE CERTIFICATE The undersigned, on behalf of Piper Sandler & Co. (the “Underwriter”), hereby certifies as set forth below with respect to the sale and issuance of the above-captioned obligations (the “Bonds”). 1. Sale of the [Bonds][10% Maturities]. As of the date of this Certificate, for each Maturity of the [Bonds][10% Maturities], the first price at which a Substantial Amount of such Maturity of the Bonds was sold to the Public is the respective price listed in Schedule A. 2. Initial Offering Price of the [Bonds][Undersold Maturities]. (a) The Underwriter offered the [Bonds][Undersold Maturities] to the Public for purchase at the respective initial offering prices listed in Schedule A (the “Initial Offering Prices”) on or before the Sale Date. A copy of the pricing wire or equivalent communication for the Bonds is attached to this Certificate as Schedule B. (b) As set forth in the Bond Purchase Agreement, the Underwriter has agreed in writing that, for each Maturity of the [Bonds][Undersold Maturities], it would neither offer nor sell any of the Bonds of such Maturity to any person at a price that is higher than the Initial Offering Price for such Maturity during the Offering Period for such Maturity, nor would it permit a related party to do so. Pursuant to such agreement, the Underwriter has neither offered nor sold any Maturity of the [Bonds][Undersold Maturities] at a price that is higher than the respective Initial Offering Price for that Maturity of the Bonds during the Offering Period. 3. Defined Terms. [(a) 10% Maturities means those Maturities of the Bonds shown in Schedule A hereto as the “10% Maturities.”] (b) Issuer means Ukiah Public Financing Authority. (c) Maturity means Bonds with the same credit and payment terms. Bonds with different maturity dates, or Bonds with the same maturity date but different stated interest rates, are treated as separate maturities. [(d) Offering Period means, with respect to an Undersold Maturity, the period starting on the Sale Date and ending on the earlier of (i) the close of the fifth business day after the Sale Date (_____________, 2022), or (ii) the date on which the Underwriter has sold a Substantial Amount of such Undersold Maturity to the Public at a price that is no higher than the Initial Offering Price for such Undersold Maturity.] Attachment 8 Page 463 of 858 103512921.2 B-2 (e) Public means any person (including an individual, trust, estate, partnership, association, company, or corporation) other than a Regulatory Underwriter or a related party to a Regulatory Underwriter. The term “related party” for purposes of this Certificate generally means any two or more persons who have greater than 50 percent common ownership, directly or indirectly. (f) Regulatory Underwriter means (i) any person that agrees pursuant to a written contract with the Issuer (or with the lead underwriter to form an underwriting syndicate) to participate in the initial sale of the Bonds to the Public, and (ii) any person that agrees pursuant to a written contract directly or indirectly with a person described in clause (i) of this paragraph to participate in the initial sale of the Bonds to the Public (including a member of a selling group or a party to a retail distribution agreement participating in the initial sale of the Bonds to the Public). (g) Sale Date means the first day on which there is a binding contract in writing for the sale of a Maturity of the Bonds. The Sale Date of the Bonds is ___________, 2022. (h) Substantial Amount means ten percent. [(i) Undersold Maturities means those Maturities of the Bonds shown in Schedule A hereto as the “Undersold Maturities.”] The undersigned understands that the foregoing information will be relied upon by the Issuer with respect to certain of the representations set forth in the Tax and Nonarbitrage Certificate and with respect to compliance with the federal income tax rules affecting the Bonds, and by Jones Hall, A Professional Law Corporation, in connection with rendering its opinion that the interest on the Bonds is excluded from gross income for federal income tax purposes, the preparation of Internal Revenue Service Form 8038-G, and other federal income tax advice it may give to the Issuer from time to time relating to the Bonds. PIPER SANDLER & CO., as Underwriter By: ___________________________________ Name: ________________________________ Dated: _________, 2022 Attachment 8 Page 464 of 858 103512921.2 C-1 EXHIBIT C FORM OF DISCLOSURE COUNSEL OPINION Attachment 8 Page 465 of 858 Page 1 of 2 Agenda Item No: 12.a. MEETING DATE/TIME: 1/19/2022 ITEM NO: 2022-26 AGENDA SUMMARY REPORT SUBJECT: Receive Status Report and Consider Any Action or Direction Related to the Novel Coronavirus (COVID-19) Emergency Including Operational Preparedness and Response; Continuity of City Operations and Services; Community and Business Impacts; and Any Other Related Matters. DEPARTMENT: City Manager / Admin PREPARED BY: Tami Bartolomei, Office of Emergency Management Coordinator PRESENTER: Tami Bartolomei, Office of Emergency Management Coordinator ATTACHMENTS: None Summary: The City Council will receive a status report and consider any action or direction related to the Novel Coronavirus (COVID-19) Emergency including operational preparedness and response; continuity of City operations and services; community and business impacts; and any other related matters. Background: On March 4, 2020, California Governor Gavin Newsom declared a State of Emergency in California in response to the COVID-19 pandemic. The County of Mendocino declared a State of Emergency related to the COVID-19 on March 4, 2020. On March 17, 2020, the City Manager, acting as the Director of Emergency Services, declared the existence of a local emergency. On March 18, 2020, City Council approved a Resolution ratifying the proclamation declaring the existence of a local emergency. Since the onset of the emergency, the City of Ukiah has worked to respond to the public health and safety needs of the community in cooperation with the County of Mendocino and other partners. The local response for public health is lead regionally by the County of Mendocino and the County's Public Health Officer. In addition, the City of Ukiah has worked to maintain the continuity of public services including public safety, water, sewer, electric, airport, public works, and other essential activities. Discussion: As the coronavirus “COVID-19” continues to evolve, the City of Ukiah continues to monitor the situation and respond to emerging needs of the community. The City is in continued contact with local and state agencies, as well as community partners, hospitals, schools, and neighboring cities to ensure we have the most updated information pertaining to COVID-19 and are coordinating efforts. Reports and/or information from the City of Ukiah's Emergency Operation Center (EOC) may include, as necessary: * Emergency Operation Center (EOC) Status * COVID-19 Case Updates * Public Information Officer * Medical Services Page 466 of 858 Page 2 of 2 * School/Education * Public Safety (Police/Fire/EMS) * Shelter in Place Monitoring and Compliance * Community Service Groups * Homeless Response * Business Impacts/Services * Public Infrastructure/Construction Status * City Finance * Recovery Efforts and Planning * Other Related matters Staff will provide a status report to City Council and will seek direction or action on operational preparedness and response; continuity of City operations and services; community and business impacts; and any other related matters. Go to the City's website (www.cityofukiah.com) for direct access to information related to the Novel Coronavirus (COVID-19) emergency including local updates, City Services, Community/Resident Information, and Business Resources. Recommended Action: Receive status report and consider any action or direction related to the Novel Coronavirus (COVID-19) Emergency including operational preparedness and response; continuity of City operations and services; community and business impacts; and any other related matters. BUDGET AMENDMENT REQUIRED: N/A CURRENT BUDGET AMOUNT: N/A PROPOSED BUDGET AMOUNT: N/A FINANCING SOURCE: N/A PREVIOUS CONTRACT/PURCHASE ORDER NO.: N/A COORDINATED WITH: Sage Sangiacomo, City Manager Page 467 of 858 Page 1 of 3 Agenda Item No: 12.b. MEETING DATE/TIME: 1/19/2022 ITEM NO: 2022-1218 AGENDA SUMMARY REPORT SUBJECT: Determination of Notification of Intent to Adjust Curbside Collection and Transfer Station Service Rates in Compliance with Solid Waste Contracts, and Initiation of Proposition 218 Protest Period for Residential Curbside Collection Rates. DEPARTMENT: Finance PREPARED BY: Dan Buffalo, Finance Director, Sage Sangiacomo, City Manager PRESENTER: Dan Buffalo, Director of Finance ATTACHMENTS: 1. SWS UWS April 2022 Adjustment 2. Rate Comparison Summary: The City Council is asked to receive and review a determination from the City Manager of proposed rates, as intended to be adjusted by Ukiah Waste Solutions, Inc. and Solid Waste Systems, Inc. for curbside and Ukiah Transfer Station services, respectively. A five-year financial review of the companies was also due and completed. The proposed rate adjustments are, by contract, allowed annually to address cost adjustments borne by the City's franchise solid waste contractor. Those operating costs are limited and specifically identified by contract as pass-through or affected by inflation, measured by the consumer price index (CPI-u). Background: Pursuant to contracts between the City of Ukiah and Ukiah Waste Solutions, Inc., and City of Ukiah and Solid Waste Systems, Inc. (collectively referred to herein as the "Company"), notices of intent were submitted to the City by the Company on August 13, 2021, for adjustments to collection rates for residential and commercial curbside service and rates for Ukiah Transfer Station services. These notices are allowed by contract annually, and any subsequent adjustments to rates are applied to the next calendar year. Corresponding notices are further detailed in the discussion section and included as attachments to this report. Additionally, per the agreements between the City and Company, the City completed a five-year review of the Company's financial statements through December 30, 2020. The subsequent analysis and other due diligence completed was included in this City Manager's report supporting these rate revisions. Because of the additional time needed to examine and complete its due diligence of the five-year financial review, the City and Company agreed to delay any subsequent rate adjustment to March 2022 following a Proposition 218 protest period. Discussion: The Finance Department was tasked to review the methodology and supporting materials used by the Company to arrive at the proposed rate adjustments to evaluate its conformity with contract requirements. As required by contract and following Finance's review, the City Manager reviewed the notices of intent from the Company received in August, 2021. The Department also coordinated with the Company in the five-year review, starting with the receipt of reviewed financial statements, compiled and reported on by an independent CPA firm, Moss Adams (CPA Firm). As part of its due diligence, the Department examined those reviewed statements and the report from CPA Firm, concluding that the revenue, expenses, and net profit (and losses) were reasonable in the context of the Company's proposed rate adjustments. Page 468 of 858 Page 2 of 3 The Company has proposed making changes to its pricing schedule for curbside collection in addition to the regular annual adjustment. City management reviewed these changes in the context of the five-year review and met with the Company to discuss them in detail. Staff was satisfied with the reasons and methodology presented and, after submitting feedback to the Company, received revised rate changes, finding them reasonable in support of the need for this pricing rebalance. Requested changes made by the Company result in modifications to pricing of all services. Notably, these changes help to address the effects on service costs of significantly rising inflation for both the Company and city customers by more equitably distributing such costs to the customer base. This was one of the purported outcomes of the five-year review: to better align costs, pricing, and service delivery to customers given actual costs incurred over that period. Additionally, included in this rebalancing and rate adjustment (and as permitted agreement) are pass-through costs related to performance of the five-year review, and for amounts authorized by the Council to be paid for mitigation expenses related to solid waste collection, such as to the Mendocino Solid Waste Management Authority (MSWMA). No rebalancing to the rate schedule for the Transfer Station was requested by the Company. The adjustments presented here are simply to account for pass-throughs and other costs that were experienced regularly during prior annual adjustments. The Company expressed an interest in revisiting a rebalancing approach to Transfer Station rates sometime in the near future (similar to curbside discussed earlier), and staff agreed it was best broached at a later date when potential costs related to the landfill closure and post closure were better understood. For both curbside and transfer station services, the regular cost elements under review consist of changes to the following: Curbside collection costs: -fuel -landfill disposal fees for garbage -landfill disposal fees for mixed organic waste -recycling processing costs -operating costs affected by inflation (CPI-u) -five-year financial review (independent CPA services) -mitigation costs, including authorized amounts paid to MSWMA Transfer Station costs: -fuel -disposal and processing costs of garbage and recycling -property tax based on tonnage -operating costs affected by inflation (CPI-u) The consumer price index (CPI-u) used was for the San Francisco-Oakland-San Jose area, which is the most relevant inflationary metric geographically and the index used for this analysis in the past. It is important to note that the City is responsible for ensuring the agreement between it and the Company is maintained well and that value is maximized for the citizenry. This is done through a comprehensive annual review process, including examining financials, service delivery, and by comparing our service arrangements to those enjoyed by other sister agencies and neighboring communities. The determination by the Finance Department and recommendation to the City Manager after review and testing of information provided by the Company is that the financial justifications for rate adjustments are reasonable and justifiable. Further, the value provided to the citizenry of Ukiah through the agreements with Page 469 of 858 Page 3 of 3 the Company remains high, offering a quality level of service at a competitive price. A rate comparison to neighboring agencies is attached as Attachment 2. Staff recommends initiation of a Prop 218 protest period for these adjusted rates before final implementation corresponding with the completion of the five-year review. Five years is generally considered the appropriate and regular duration of time when property-related rates and fees should be evaluated as a whole and re- established through the 218 process. Supporting documentation provided by the Company for Ukiah Transfer Station services and curbside services is attached here as Attachment 1. Specifically, the rates for transfer station and curbside services are presented on pages 4 and 10 respectively of the pdf. Information found in these rate schedules will be included in the 218 notice following initiation of the process by Council. The proposed rate adjustment does not include the reopening of the recycling buy-back center, which would require a more significant rate increase (to all users) in order to be financially feasible along with need to address other problems previously discussed and considered by Council. The collapse of the recycling market is a statewide--even nationwide--issue that remains without a solution. State law mandates that, in the absence of a buy-back center within one-half mile, retailers that sell beverages with California Redemption Value (CRV) must also take back empties or pay fines of $100 per day to the State. However, many retailers are out of compliance with this law and/or face difficulties with implementation, leaving consumers without an option to return their recyclables for cash. CRV monies are collected by CalRecycle, not by local governments or local waste haulers. Those funds are used to refund recycling buy-back centers for the recyclables they take in. However, money collected from recyclables that are not redeemed for cash stays with CalRecycle. Recommended Action: Confirm the determination of the City Manager, as reported here, of compliance with the provisions of the agreements between the City of Ukiah and Ukiah Waste Solutions, Inc. and Solid Waste Systems, Inc. regarding the company's notice of intent to adjust curbside collection and transfer station rates, authorize the initiation of the Proposition 218 protest period for residential curbside collection rates, and schedule the subsequent protest hearing for March 2, 2022. BUDGET AMENDMENT REQUIRED: N/A CURRENT BUDGET AMOUNT: N/A PROPOSED BUDGET AMOUNT: N/A FINANCING SOURCE: N/A PREVIOUS CONTRACT/PURCHASE ORDER NO.: N/A COORDINATED WITH: N/A Page 470 of 858 COSTS Subject to adjustment Cost Index Adjustment Allowed Operating Costs subject to CPI $2,409,140.74 CPI 106,243.11$ Fuel $196,025.33 Fuel 97,631.75$ Disposal - Garbage $830,562.84 Contract rate Pass Through 32,973.34$ Disposal - Processing $395,960.72 Negotiated Pass Through 30,964.13$ Disposal - Processing Recycling $204,392.43 Pass Through (3,916.08)$ Pass Through -$ Maint / Prop Tax $2.36/ton $104,909.29 CPI Pass Through 4,626.50$ City Rent $10/ton $444,531.05 Lease rate Pass Through -$ City Landfill Fee $14/ton $622,343.47 Set by City Pass Through -$ MSWMA Fee $6.50/ton $288,945.09 Set by City Pass Through -$ Total COSTS Subject to adjustment $5,496,810.96 268,522.75$ Adjusted Costs 5,765,333.71$ Adjustments:$0.00 -$ Total Adjustments $0.00 -$ Adjusted Cost $5,496,810.96 268,522.75$ Revenue base Comparison Year Revenue $4,162,780.83 Fuel $97,631.75 Disposal - garbage $32,973.34 Disposal - processing $30,964.13 CPI adjustment $106,243.11 City Landfill Fee $14/ton $0.00 Maint / Prop Tax $2.36/ton $4,626.50 Disposal Processing - Recycling -$3,916.08 $0.00 Revenue change - Contractor $268,522.75 Less: City & MSWMA Fee Adjustments Adjusted revenue $4,431,303.58 Adjusted Revenue Difference $268,522.75 Current Adjustment New Contractor Rate increase as a percent 6.45%$78.53 $5.07 $83.60 MSWMA Rate increase as a percent 0.00%$6.50 $0.00 $6.50 City Rate increase as a percent 1.87%$24.00 $0.45 $24.45 $109.03 Total Rate $114.55 EFFECTIVE RATE ADJUSTMENT PERCENT 5.06% Solid Wastes Systems Transfer Station Effective Date April, 2022 Annual Adjustment Calculations Using 2020 Year Data Attachment 1 Page 471 of 858 Solid Wastes Systems Transfer Station Effective Date April, 2022 Annual Adjustment Calculations Using 2020 Year Data Fuel - June to June (EIA Petroleum & Other Liquids) See Fuel cost adjustment worksheet CPI Bay Area- June to Nov June 2020 Nov 2021 Index Increase (Decrease) 300.032 313.265 13.233 CPI % Change 4.41% Landfill Fee Jan to Jan CPI Jun to Jun CPI Jun to Nov 90% January 2021 January 2022 2020 2021 Increase (Decrease) $ 25.36 $ 26.37 300.032 313.265 13.233 3.97% Disposal - Garbage Cost % Change 3.97% Disposal Processing Fee Jan to Jan CPI Jun to Jun CPI Jun to Nov January 2021 January 2022 2020 2021 Increase (Decrease) $ 32.10 $ 34.61 257.797 277.948 20.151 Disposal - Green Waste Cost % Change 7.82% Transfer Station MSW Tonnage at gate, Year to Year June 2020 Y/E 2020 Increase (Decrease) 42,800.54 44,453.09 1,652.55 Tonnage % Change 3.86% City Landfill Fee June to June January 2021 January 2022 Increase (Decrease) $ 14.00 $ 14.00 $ 0.00 City Landfill Fee % Change 0.00% MSWMA Fee June to June January 2021 January 2022 Increase (Decrease) $ 6.50 $ 6.50 $ 0.00 MSWMA Fee % Change 0.00% Recycle Tip Fee June to June Y/E June 2020 Y/E 2020 Increase (Decrease) $208,308.51 $204,392.43 -$3,916.08 Rate Review Cost MSW Tons 12 Mo. MSW Tons 9 Mo.Per Ton $15,000.00 44,453.09 33,339.82 $0.45 Retrieved over 9 months (April - Dec 2022) Worksheet for computing the change in various indexes and factors which comprise the components on which rates are adjusted Attachment 1 Page 472 of 858 Fuel Revenue Adjustment Worksheet, based on Fuel Index change, June to June SWS Base Year Fuel Index and Cost 3.216 $201,261.07 June 2020 after 5 yr Review - Jan 2021 Annual adjustment based on Fuel Index change, year to year (using example fuel index changes) 1 Estimated Fuel index adjustment at Dec 2021 4.776 48.51%$97,631.75 Plus: Base Year Cost X Index Change Revenue adjustment for January 2022 rate revision $97,631.75 $0.00 Less: Prior Fuel Cost applied to rate $298,892.82 Fuel Cost Allowed Year 1 - 2022 2 Estimated Fuel index adjustment at June 2022 4.776 48.51%$97,631.75 Plus: Base Year Cost X Index Change Revenue adjustment for January 2023 rate revision $0.00 $97,631.75 Less: Prior Fuel Cost applied to rate $298,892.82 Fuel Cost Allowed Year 2 - 2023 3 Estimated Fuel index adjustment at June 2023 4.776 48.51%$97,631.75 Plus: Base Year Cost X Index Change Revenue adjustment for January 2024 rate revision $0.00 $97,631.75 Less: Prior Fuel Cost applied to rate $298,892.82 Fuel Cost Allowed Year 3 - 2024 4 Estimated Fuel index adjustment at June 2024 4.776 48.51%$97,631.75 Plus: Base Year Cost X Index Change Revenue adjustment for January 2025 rate revision $0.00 $97,631.75 Less: Prior Fuel Cost applied to rate $298,892.82 Fuel Cost Allowed Year 4 - 2025 5 Estimated Fuel index adjustment at June 2025 4.776 48.51%$97,631.75 Plus: Base Year Cost X Index Change Revenue adjustment for January 2026 rate revision $0.00 $97,631.75 Less: Prior Fuel Cost applied to rate $298,892.82 Fuel Cost Allowed Year 5 - 2026 Index Change - New vs. Base Year Attachment 1 Page 473 of 858 Calculated NEW 2022 2022 2021 FA Rate Item Rate Rate Rounded * MSW - Ton $109.00 $114.52 $114.50 This rate adjusted by 5.06% (effective rate) MSW - Yard $24.40 $25.70 $25.70 This rate = 24.05% of per ton contractor gate fee PLUS per ton City & MSWMA fees divided by 5.54 (yards / ton) Minimum Gate Fee - MSW Up to 3 cans $12.20 $12.85 $12.85 This rate = MSW Yard fee / 2 Per Can Rate - 32 gallon After 3 cans $4.05 $4.28 $4.30 This rate - Min Gate fee / 3 Green Waste - Ton $51.70 $55.03 $55.05 Green Waste - Yard $7.50 $7.98 $8.00 Minimum Gate Fee - Green Waste $7.40 $7.88 $7.90 Mixed Load - Additional Charge $23.10 $24.59 $24.60 Appliances $12.65 $13.47 $13.45 Oil Filters - Small $0.45 $0.48 $0.50 Oil Filters - Medium $0.80 $0.85 $0.85 Oil Filters - Large $1.10 $1.17 $1.15 Concrete - Ton $81.05 $86.28 $86.30 Dirt - Ton $81.05 $86.28 $86.30 These rates adjusted by 6.45% (contractor rate) Sheetrock - Clean $51.70 $55.03 $55.05 Sheetrock - Dirty $81.05 $86.28 $86.30 Tires - Bicycle $1.45 $1.54 $1.55 Tires - Motorcycle $2.80 $2.98 $3.00 Tires - Passenger Car $4.25 $4.52 $4.50 Tires - Passenger Car with Rim $6.60 $7.03 $7.05 Tires - Truck $9.00 $9.58 $9.60 Tires - Truck with Rim $12.15 $12.93 $12.95 Tires - Tractor 53.40 - 403.90 56.84 - 429.95 56.85 - 429.95 E-Waste - Computers No Charge No Charge No Charge E-Waste - Monitors No Charge No Charge No Charge Scrap Metal No Charge No Charge No Charge * Rates are rounded to the nearest five cents Transfer Station Rate Schedule Solid Wastes Systems, Inc. Effective Date April, 2022 Attachment 1 Page 474 of 858 NEW 2022 Rate Item Rounded * MSW - Ton $114.50 MSW - Yard $25.70 Minimum Gate Fee - MSW Up to 3 cans $12.85 Per Can Rate - 32 gallon After 3 cans $4.30 Green Waste - Ton $55.05 Green Waste - Yard $8.00 Minimum Gate Fee - Green Waste $7.90 Mixed Load - Additional Charge $24.60 Appliances $13.45 Oil Filters - Small $0.50 Oil Filters - Medium $0.85 Oil Filters - Large $1.15 Concrete - Ton $86.30 Dirt - Ton $86.30 Sheetrock - Clean $55.05 Sheetrock - Dirty $86.30 Tires - Bicycle $1.55 Tires - Motorcycle $3.00 Tires - Passenger Car $4.50 Tires - Passenger Car with Rim $7.05 Tires - Truck $9.60 Tires - Truck with Rim $12.95 Tires - Tractor 56.85 - 429.95 E-Waste - Computers No Charge E-Waste - Monitors No Charge Scrap Metal No Charge * Rates are rounded to the nearest five cents Solid Wastes Systems, Inc. Transfer Station Rate Schedule Effective Date April, 2022 Attachment 1 Page 475 of 858 SWS Transfer Station Agreement Adjustment Adjustment Index Cost Cost/Rev Period Method Used Group 1,2,4 Construction / Lease $2.36 / MSW ton Annual 100% of index change CPI - US Cities CPI-U Base Rate as Adjusted 3 Construction / Lease $10.00 / MSW ton Time to Time Per City N/A Pass Through 1,2 Fuel Annual 100% of index change eia CA #2 Diesel Retail all sellers Base Rate as Adjusted Disposal - Landfill Time to Time Per Landfill Agreement N/A Pass Through 9 Disposal - Processing Time to Time Per Processor Agreements N/A Pass Through 1,2 Operating Costs Annual 100% of index change CPI - US Cities CPI-U Base Rate as Adjusted Per Ton Contractor Gate 4 City Franchise Fee $2.00 Time to Time Per City N/A Pass Through 4 MSWMA Fee $5.00 Time to Time Per MSWMA N/A Pass Through 6,7,8 TOTAL GATE FEE Notes 1 Agreement should state mutually agreed upon Index if Index becomes unavailable 2 June to June change 3 Lease rate replaces construction rate January 1, 2017 - $10.00 per ton MSW 4 Part of Construction rate left in gate rate to cover triple net lease costs (adjusts by CPI) starting January 1, 2017. i.e.. Prop tax, Insurance & R&M. 4 Agreement should state initial rate, subject to change by City / MSWMA action 5 Exhibit of calculation to be made part of agreement 6 SWS requests new rate by Aug 15, City approves by Oct 15, Pub Notice given by Nov 1, Adjusted Rate goes into effect following January 1. 7 Per Yard Gate Fee shall be equal to 24.05% of per ton contractor gate fee PLUS per ton City & MSWMA fees divided by 5.54 (MSWMA yards / ton) 8 Rate change is calculated as follows: % annual adjustment X actual prior year (July to June) component cost = new funds needed / total gate revenue = % adjustment to gate rate. 9 Processing contract mutually agreed to with city - i.e. PRS grinding yard rate charged SWS for greenwaste. City can direct SWS to implement other programs, provided the costs of such programs are covered through increased rates. Attachment 1 Page 476 of 858 SWS CPI Operating Costs TOTAL Expenses 2020 $5,578,219.35 Less: Fuel -$196,025.33 Disposal - Garbage -$830,562.84 Disposal - Processing -$395,960.72 Disposal - Recycling -$204,392.43 Maint / Prop Tax $2.36/ton -$104,909.29 City Rent $10/ton -$444,531.05 City Landfill Fee $14/ton -$622,343.47 MSWMA Fee $6.50/ton -$273,224.86 Scrap Metal Cost $0.00 Buyback Recycle Purchase Cost $0.00 Compost / Landscape Cost -$97,128.62 TOTAL CPI Allowed Operating Costs $2,409,140.74 Comparison Year Revenue Total Revenue $5,617,379.43 Less: Scrap Metal $0.00 Buyback $0.00 Compost / Landscape -$114,499.22 City Rent $10/ton -$444,531.05 City Landfill Fee $14/ton -$622,343.47 MSWMA Fee $6.50/ton -$273,224.86 Comparison Year Revenue $4,162,780.83 Attachment 1 Page 477 of 858 Comparison Year Costs 2020 Index Increase / Decrease Allowed TOTAL COSTS $4,498,471.74 Less: Fuel Cost $133,120.59 Fuel $78,995.17 Less: Disposal Fees - Garbage $1,245,894.12 SWS TS Gate $62,917.65 Less: Disposal Fees - Mixed Organic Waste $147,429.23 Negotiated $11,705.88 Less: Processing - Recycling $178,638.35 Contract $3,046.05 Less: City Landfill Closure Costs $60,000.00 Set by City $0.00 Less: City Commercial Oversight fee $9,999.96 Set by City $0.00 Collection Costs $2,723,389.49 Change in Franchise Fee & Billing Costs $60,753.56 Collection COSTS Subject to CPI adj.$2,723,389.49 CPI BA $120,101.48 $337,519.79 TOTAL Total Revenue base Residential Commercial Roll Off Revenue 27.74%65.77%6.49% 100.00% $1,310,791.27 $3,108,165.75 $306,878.86 $4,725,835.88 2020 Comparison Year Revenue $1,310,791.27 $3,108,165.75 $306,878.86 $4,725,835.88 Fuel Cost $21,910.66 $51,954.85 $5,129.66 $78,995.17 Disposal Fees - MOW $3,246.83 $7,698.92 $760.14 $11,705.89 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 Processing - Recycle $844.87 $2,003.38 $197.80 $3,046.05 Landfill closure cost $0.00 $0.00 $0.00 $0.00 Commercial Oversight fee $0.00 $0.00 $0.00 $0.00 Other Regulatory & Governmental Costs $0.00 $0.00 $0.00 $0.00 Disposal Fees - Garbage $17,451.28 $41,380.72 $4,085.65 $62,917.65 CPI adjustment $33,312.20 $78,990.32 $7,798.96 $120,101.48 Total before franchise and billing fees $1,387,557.11 $3,290,193.94 $324,851.07 $5,002,602.12 Franchise & Billing Fees $16,851.04 $39,957.41 $3,945.12 $60,753.56 Rate Review Cost (9mo)$20,000.00 $5,547.34 $13,153.93 $1,298.73 $20,000.00 Abatement Recovery (9mo)$39,253.33 $10,887.58 $25,816.78 $2,548.97 $39,253.33 Indexed Adjusted revenue $1,420,843.07 $3,369,122.06 $332,643.89 $5,122,609.02 Indexed 2022 Revenue Adjustment $110,051.80 $260,956.31 $25,765.03 $396,773.14 5 Yr Cost Recovery Adjustment $23,119.20 $81,495.60 $104,614.80 Actual Collected Abatement & Review Cost Adustment ($14,813.33) Adjusted revenue with 5 Yr Cost Recovery $5,212,410.49 Ukiah Waste Solutions Curbside Rate Annual Adjustment Calculations Effective Date April 1, 2022 Per Adjustment Summary Attachment 1 Page 478 of 858 Ukiah Waste Solutions Curbside Rate Annual Adjustment Calculations Effective Date April 1, 2022 June 2020 Nov 2021 Index Increase (Decrease) 300.032 313.265 13.233 CPI % Change 4.41% January 2021 April 2022 Increase (Decrease) $109.00 $114.50 $5.50 Transfer Station Fee % Change 5.05% June 2020 Nov 2021 Increase (Decrease) PRS 90%CPI Jun to Jun 300.032 313.265 13.233 3.97% CCC 90%CPI Jun to Jun 300.032 313.265 13.233 3.97% $57.45 $62.01 7.94% Disposal Fee - Green Waste % Change 7.94% January 2020 January 2021 Increase (Decrease) $60,000.00 $60,000.00 $0.00 Landfill Closure Costs % Change 0.00% January 2020 January 2021 Increase (Decrease) $10,000.00 $10,000.00 $0.00 Commercial Oversight Fee % Change 0.00% Y/E June 2020 Y/E June 2021 Increase (Decrease) $164,618.85 $167,664.90 $3,046.05 City Franchise Fee 15%City Billing Fee - Residential Customers 3% Recycle Tip Fee June to June Commercial Oversight Fee Jan to Jan Landfill Closure Costs Jan to Jan Mixed Organic Waste Disposal Fee (Disposal - Green Waste) Jan to Jan Transfer Station Fee (Disposal Fees - Garbage) Jan to Jan CPI Bay Area - June to June (Index) Fuel - June to June (EIA Petroleum & Other Liquids) See Fuel Cost Adjustment Worksheet Attachment 1 Page 479 of 858 Effective Date April 1, 2022 Current New 2021 2022 Total Monthly Service Level Rate Rate Adjustment Curbside Service No Service Minimum Charge 10.00$10.36$0.36$ 20 gallon can rate 19.97$21.65$1.68$ 32 gallon can rate 21.74$24.39$2.65$ 68 gallon can rate 51.36$55.67$4.31$ 95 gallon can rate 72.36$78.44$6.08$ Other combinations - rate per gallon 0.85$0.92$0.07$ 1 yard bin rate 153.76$173.44$19.68$ 1.5 yard bin rate 181.68$216.80$35.12$ 2 yard bin rate 242.27$281.84$39.57$ 3 yard bin rate 363.37$411.92$48.55$ 4 yard bin rate 484.49$542.00$57.51$ 6 yard bin rate 726.75$787.80$61.05$ Packout Service 20 gallon can rate 25.07$27.18$2.11$ 32 gallon can rate 28.46$31.93$3.47$ 68 gallon can rate 66.86$72.48$5.62$ 95 gallon can rate 96.58$104.69$8.11$ Other combinations - rate per gallon 1.03$1.12$0.09$ Remote Area Service Add to the Packout Service rate.9.49$10.29$0.80$ In areas with limited access, an additional fee is charged to fund the costs of special equipment and special handling necessary to provide garbage pickup services. This fee is in addition to the "Packout Service" fee listed in this schedule. Commercial / Multi-Family Service 20 gallon can rate 20.73$22.47$1.74$ 32 gallon can rate 24.12$27.06$2.94$ 68 gallon can rate 57.02$61.81$4.79$ 95 gallon can rate 80.35$87.10$6.75$ 1 yard bin rate 153.76$173.44$19.68$ 1.5 yard bin rate 181.68$216.80$35.12$ 2 yard bin rate 242.27$281.84$39.57$ 3 yard bin rate 363.37$411.92$48.55$ 4 yard bin rate 484.49$542.00$57.51$ 6 yard bin rate 726.75$787.80$61.05$ Ukiah Waste Solutions, Inc. 2022 RATE ADJUSTMENT SUMMARY OF RATE ADJUSTMENT FOR STANDARD SERVICES Attachment 1 Page 480 of 858 Calculation to adjust fuel costs Effective Date January 1, 2022 Fuel Revenue Adjustment Worksheet, based on Fuel Index change, June to June UWS Base Year Fuel Index and Cost 3.216 $162,843.06 June 2020 after 5 yr Review - Jan 2021 Annual adjustment based on Fuel Index change, year to year (using example fuel index changes) 2 Fuel index adjustment at Dec 2021 4.776 48.51%$78,995.17 Plus: Base Year Cost X Index Change Revenue adjustment for January 2022 rate revision $78,995.17 $0.00 Less: Prior Fuel Cost applied to rate $241,838.23 Fuel Cost Allowed Year 1 - 2022 3 Estimated Fuel index adjustment at June 2022 4.776 48.51%$78,995.17 Plus: Base Year Cost X Index Change Revenue adjustment for January 2023 rate revision $0.00 $78,995.17 Less: Prior Fuel Cost applied to rate $241,838.23 Fuel Cost Allowed Year 2 - 2023 4 Estimated Fuel index adjustment at June 2023 4.776 48.51%$78,995.17 Plus: Base Year Cost X Index Change Revenue adjustment for January 2024 rate revision $0.00 $78,995.17 Less: Prior Fuel Cost applied to rate $241,838.23 Fuel Cost Allowed Year 3 - 2024 5 Estimated Fuel index adjustment at June 2024 4.776 48.51%$78,995.17 Plus: Base Year Cost X Index Change Revenue adjustment for January 2025 rate revision $0.00 $78,995.17 Less: Prior Fuel Cost applied to rate $241,838.23 Fuel Cost Allowed Year 4 - 2025 6 Estimated Fuel index adjustment at June 2025 4.776 48.51%$78,995.17 Plus: Base Year Cost X Index Change Revenue adjustment for January 2026 rate revision $0.00 $78,995.17 Less: Prior Fuel Cost applied to rate $241,838.23 Fuel Cost Allowed Year 5 - 2026 Index Change - New vs. Base Year Attachment 1 Page 481 of 858 Recycle Charge or Payment From To Tip / Credit Zero Point $115.00 $154.99 $0.00 Tip Fee $105.00 $114.99 $15.00 Charge to Customer $95.00 $104.99 $25.00 $85.00 $94.99 $35.00 $75.00 $84.99 $45.00 $74.99 and below $55.00 PMT $155.00 $164.99 $5.00 Payment to Customer $165.00 $174.99 $10.00 $175.00 $184.99 $15.00 $185.00 $194.99 $20.00 $195.00 and up $25.00 Recycling Per Ton TOTAL 2020 Material CMV Tons Tip Fee/Pmt Fee / Pmt Jul $45.51 315.95 $55.00 $17,377.25 Aug $51.09 303.41 $55.00 $16,687.55 Sep $57.23 306.01 $55.00 $16,830.55 Oct $60.38 265.45 $55.00 $14,599.75 Nov $64.18 255.45 $55.00 $14,049.75 Dec $68.45 285.06 $55.00 $15,678.30 2021 Jan $59.39 248.44 $55.00 $13,664.20 Feb $60.42 242.99 $55.00 $13,364.45 Mar $63.63 271.88 $55.00 $14,953.40 Apr $83.92 276.02 $45.00 $12,420.90 May $83.22 246.94 $45.00 $11,112.30 Jun $97.29 277.06 $25.00 $6,926.50 $167,664.90 Ukiah Waste Solutions Tip Fee or (Credit) Schedule Market Value Grid Attachment 1 Page 482 of 858 Effective Date January 1, 2018 Adjustment Adjustment Index Cost Cost/Rev Period Method Used Group 1,2 Fuel Annual 100% of index change eia Ca #2 Diesel Retail all sellers Base Rate as Adjusted Disposal - Solid Waste Time to Time Per TS (SWS) Agreement N/A Pass Through 1,2 Operations (all other costs)Annual 100% of index change CPI - US Cities CPI-U Base Rate as Adjusted 3 Recycle Reduction Annual Per Recycle Agreement Rec Market Value Grid - $5 base Operating Cost Reduction 1,2 Green Waste Disposal $30 / Ton Annual Up to CPI (Contractor Choice)CPI - US Cities CPI-U Base Rate as Adjusted 1,2,8 Food Waste Disposal (Comm)Up to $40 / ton Annual Up to CPI (Contractor Choice)CPI - US Cities CPI-U Base Rate as Adjusted 4 City Franchise Fee 15%Time to Time City Action N/A Pass Through 4 City Bill Fee 3%Time to Time City Action N/A Pass Through 4 City Oversight Fee $10,000.00 Time to Time City Action N/A Pass Through 4 City Landfill Closure Fee $60,000.00 Time to Time City Action N/A Pass Through 6,9 TOTAL NET COST Notes 1 Agreement should state mutually agreed upon Index if Index becomes unavailable 2 June to June change 3 Recycle Agreement with PRS renewable every 5 years with Base Market Value per mixed ton to provide for Rev sharing with City (reduction of operating costs). 4 Agreement should state initial rate, subject to change by City action 5 Exhibit of calculation to be made part of agreement 6 UWS requests new rate by Aug 15, City approves by Oct 15, Pub Notice given by Nov 1, Adjusted Rate goes into effect following January 1. 7 Agreement must provide for City Flow Control with language that directs flow to contractor facilities when available. 8 FOOD WASTE - UWS will implement a pilot and or full commercial food waste program in place by June 2013 provided proper permits can be obtained Details still to be worked out. 9 Rate change is calced as follows: % annual adjustment X actual prior year (July to June) actual component cost = new funds needed / collection revenue = % adjustment per rate. New cost adj dollars (fuel, disposal, city fees etc..) need to be adjusted for city fees - CPI adj does not. RE-OPENER - the contract should have a mutual re-opener for other new items Ukiah Waste Solutions Curbside Agreement Attachment 1 Page 483 of 858 UWS disposal rate for MOW Effective Date January 1, 2022 Current 2021 Tip Fee $59.13 $59.13 PRS 90% CPI 2021 3.97% CCC 90% CPI 2021 3.97% 7.94% MOW Tip Fee 2022 with CPI $63.82 Percentage Increase/Decrease 7.94% Attachment 1 Page 484 of 858 RESIDENTIAL / COMMERCIAL Residential Carts 1 - 10*** 11 - 20 21 - 32 33 - 68 69 - 95 Gallons 8.40%2022 Rates No Service Fee 1x/WK 1x/WK 1x/WK 1x/WK 1x/WK 8.4100%Roadside 10.36 N/A 21.65 24.39 55.67 78.44 12.19%Pack Out*10.29 N/A 27.18 31.93 72.47 104.69 8.39%Remote**20.58 N/A 37.47 42.22 82.76 114.98 * Pack Out service is limited to the elderly and disabled who apply directly through Ukiah Waste Solutions @ 707-234-6400. ** The additional charges of Remote service may be required for certain areas with difficult access. *** 10 gallon containers and rates are longer available to new customers effective January 1, 2018. Existing customers with these containers may continue to use them at the 20-gallon cart rate. Commercial / Multi-Family Carts 2022 Rates 1 - 10***11 - 20***21 - 32 33 - 68 69 - 95 Gallon 8.39%1 Can - 1x/WK N/A 22.47 27.06 61.81 87.10 8.40%1 Can - 2x/WK 60.13 137.57 193.58 12.2%1 Can - 3x/WK 100.48 210.92 294.70 2 Cans - 1x/WK 60.13 137.57 193.58 *** 10 gallon containers and rates are longer available to new customers effective January 1, 2018. Existing customers with these containers may continue to use them at the 20-gallon cart rate. Commercial / Multi-Family Bins Yards Number of pick-ups per week Extra 2022 Rates Dollars / Yard 1x/WK 2x/WK 3x/WK 4x/WK 5x/WK 6x/WK Pick-up 1.0 173.44 0.00 0.00 0.00 0.00 0.00 40.06 1.5 216.80 433.60 650.40 867.20 1,084.00 1,300.80 50.07 2.0 281.84 563.68 845.52 1,127.36 1,409.20 1,691.04 65.09 3.0 411.92 823.84 1,235.76 1,647.68 2,059.60 2,471.52 95.13 4.0 542.00 1,084.00 1,626.00 2,168.00 2,710.00 3,252.00 125.17 6.0 787.80 1,575.60 2,363.40 3,151.20 3,939.00 4,726.80 181.94 Extra p/u calculated at 1/wk divided by 4.33 Rate Clean-Up Bins and Boxes 1/1/2022 3.0 Yd 3 day rental 136.27 15.0 Yd 7 day rental 308.77 Plus $114.50 per ton tip fee 20.0 Yd 7 day rental 308.77 Plus $114.50 per ton tip fee 30.0 Yd 7 day rental 308.77 Plus $114.50 per ton tip fee Compactors 308.77 Plus $114.50 per ton tip fee Rate Misc Charges 1/1/2022 Bulky Items (appliances, Lg Tires, Furniture etc..)34.28 Plus tip fee Tires - each - (Automotive or motorcycle)7.22 Damage Cart Replacement 93.28 Additional Green Waste or R/C Cart 9.19 Extra Residential Pick-up 8.95 Extra Commercial Pick-up 16.70 Compactor Cleaning 402.07 Container Cleaning 144.72 Locking bin, one-time setup fee 45.83 Plus Materials Replacement Key 16.09 Contamination Fee 45.92 Returned Check Fee 35.00 Roll Off or Bin Extra Day Charge 16.70 Exchange Cart Size 34.43 Enclosure Fee - Unlock/Lock or Pull Out/Put In 12.64 Ukiah Waste Solutions, Inc. April 1, 2022 Rate Schedule Attachment 1 Page 485 of 858 Attachment 1 Page 486 of 858 Attachment 1 Page 487 of 858 Attachment 1 Page 488 of 858 Ukiah Waste Solutions, Inc. Rate Comparison Jurisdiction 20 Gal 32 Gal 64 Gal 96 Gal 2 Yard 3 Yard 4 Yard 6 Yard City of Ukiah Current 2021 $19.97 $21.74 $51.36 $72.36 $242.27 $363.37 $484.49 $726.75 City of Clearlake $20.46 $24.29 $42.55 $60.77 $291.58 $402.57 $534.86 $805.12 City of Ukiah Rate - Proposed $21.65 $24.39 $55.67 $78.44 $281.84 $411.92 $542.00 $787.80 South Lake Refuse $22.28 $24.40 $48.80 $73.20 $332.38 N/A $664.76 $997.14 Lake County $21.89 $25.11 $50.23 $75.35 $337.36 $506.04 $674.73 $1,012.09 City of Healdsburg $19.67 $26.12 $37.54 $50.99 $420.80 $578.10 $721.30 $921.87 City of Lakeport $17.77 $26.24 N/A $77.18 $359.28 $447.75 N/A N/A City of Cloverdale $20.24 $27.90 $44.06 $57.13 $265.85 $330.35 $390.23 $565.21 City of Willits $16.21 $28.65 $61.77 $77.68 $333.98 $462.05 $579.00 $892.83 Town of Windsor $22.01 $29.26 $45.75 $70.25 $385.03 $549.41 $657.39 $816.84 County of Mendocino Inland WM $26.80 $29.64 $59.41 $89.12 $359.25 $415.03 $491.74 $678.53 County of Mendocino Coastal WM $26.94 $30.09 $60.28 $90.32 $357.41 $434.23 $560.35 N/A City of Santa Rosa $31.24 $35.02 $50.43 $76.38 $464.09 $569.99 $714.56 $971.76 Brooktrails $30.54 $38.04 $58.12 $74.69 $326.42 N/A N/A N/A City of Fort Bragg $24.45 $38.95 $77.91 $116.89 $389.42 $456.98 $712.04 N/A County of Mendocino North SWOW $40.88 $49.93 $68.02 $81.92 $423.86 $542.68 $698.76 $990.84 County of Mendocino South Coast SWOW $41.86 $50.87 $70.80 $85.25 $474.19 $707.75 $1,082.13 $1,408.20 Median (excludes Ukiah)$22.28 $29.26 $54.28 $76.38 $359.25 $462.05 $664.76 $921.87 UWS RATE 2022 vs All Areas 2021 Carts Bins Attachment 2 Page 489 of 858 Page 1 of 2 Agenda Item No: 12.c. MEETING DATE/TIME: 1/19/2022 ITEM NO: 2022-1212 AGENDA SUMMARY REPORT SUBJECT: Introduction of an Ordinance by Title Only, Amending Article 1 of Division 1, Chapter 4 of the Ukiah City Code to Reform the Paths, Open Space, and Golf Commission and the Parks, Recreation and Golf Commission into the Public Spaces Commission. DEPARTMENT: Community Services PREPARED BY: Neil Davis, Community Services Director PRESENTER: Neil Davis, Community Services Director ATTACHMENTS: 1. Public Spaces Commission Ordinance Attachment 1 2. ASR Community Outreach Plan Draft Attachment 2 3. 12c Correspondence Received - Susan Knopf Summary: Council will consider introducing an ordinance amending Article 1 of Division 1, Chapter 4 of the Ukiah City Code to reform the Paths, Open Space, and Golf Commission and the Parks, Recreation and Golf Commission into the Public Spaces Commission. Background: On September 15, 2021, the Ukiah City Council received a “Presentation of Findings to Improve the Efficiency and Productivity of the Paths, Open Space, and Creeks Commission (POSCC) and the Parks, Recreation, and Golf Commission (PRGC); and Seeking Direction from Council Regarding the Reformation of the Commissions as a Single Public Spaces Commission.” Based on this presentation, Council approved the recommended action directing Staff to return at a future meeting with a proposed ordinance for introduction. Discussion: Following direction from Council, Staff prepared an ordinance amending Article 1 of Division 1, Chapter 4 of the Ukiah City Code to reform the Paths, Open Space, and Golf Commission and the Parks, Recreation and Golf Commission into the Public Spaces Commission (PSC) (Attachment 1). The intent in the reformation of the POSCC and PRGC into a new Public Spaces Commission is to enable the Commission to foster a culture of informed public input on the use of public spaces and to make recommendations and provide advice to Staff and Council. Towards this purpose, a draft “Public Spaces Commission Community Outreach Plan” for improved processes to solicit public comment has been included in Attachment 2. Should Council adopt this ordinance, Staff will present the attached draft Community Outreach Plan to the new commissioners for their consideration, edits, and adoption. Once adopted by the PSC, the Outreach Plan will be presented for Council's adoption. Proposed terms of office for PSC Commissioners are three (3) years. Proposed number of Commissioners is seven (7), with no less than four (4) members as City residents and three (3) members residing outside the city limits but within Mendocino County. All current POSCC and PRGC Commissioners will be invited to join the PSC through the remainder of their term. Proposed is for the PSC to have three primary functions. The first function will be to solicit, collate, and analyze public input, and provide advice and recommendations to Council based on this input. The second function is to form short-term “working groups” both among Commissioners themselves as well as with Page 490 of 858 Page 2 of 2 members of the public, to pursue areas of interest and to collaborate with and assist Staff. Ideally, all working groups should have a City Council member or member of Staff actively engaged in the working group. The third function will be an annual update to the Public Spaces Commission Community Outreach Plan (Attachment 2). The annual update to the plan will allow the PSC, in collaboration with Staff and Council, to continually work to improve the community input process. Staff will track and report on PSC activities. An annual PSC activity report will be presented to Council to include items such as number of meetings held, meeting attendance, e-newsletter totals (number of subscribers, number of email “opens” etc.), number of social media posts (and associated metrics). Recommended Action: Introduce an ordinance by title only, amending Article 1 of Division 1, Chapter 4 of the Ukiah City Code to reform the Paths, Open Space, and Golf Commission and the Parks, Recreation and Golf Commission into the Public Spaces Commission. BUDGET AMENDMENT REQUIRED: N/A CURRENT BUDGET AMOUNT: N/A PROPOSED BUDGET AMOUNT: N/A FINANCING SOURCE: N/A PREVIOUS CONTRACT/PURCHASE ORDER NO.: N/A COORDINATED WITH: City Manager's Office and City Attorney's Office Page 491 of 858 Attachment 1 1 ORDINANCE NO. ORDINANCE OF THE CITY COUNCIL OF THE CITY OF UKIAH AMENDING ARTICLE 1 AND REPEALING ARTICLE 1B FROM DIVISION 1, CHAPTER 4 OF THE CITY CODE TO ESTABLISH THE PUBLIC SPACES COMMISSION. The City Council of the City of Ukiah hereby ordains as follows: SECTION ONE. FINDINGS 1. On September 15, 2021, the Ukiah City Council received a presentation of findings from staff to improve the efficiency and productivity of the Paths, Open Space and Creeks Commission (POSCC) and the Parks, Recreation, and Golf Commission (PRGC). In this presentation, staff sought direction from Council regarding the recommended reformation of these commissions as a single Public Spaces Commission (“Commission”). Council directed staff to proceed with drafting an Ordinance that would merge the POSCC and PRGC into a single Public Spaces Commission and to consider the functions and authority of the reformed Commission. 2. The intent in the reformation of the POSCC and PRGC into a new Public Spaces Commission is to improve the efficiency and effectiveness of the two groups while continuing to serve the same broad functions regarding policy recommendations for use of public spaces within the City. 3. The Commission will work to foster a culture of informed public input on the wise use of public spaces and to make recommendations and provide advice to Staff and Council based on broad and informed public input. 4. The Commission will draft and annually update a “Public Spaces Commission Community Outreach Plan” for improved processes to solicit public comment. The Plan will be submitted to Council for approval. 5. All current POSCC and PRGC commissioners will be invited to join the Commission through the remainder of their respective terms. 6. Pursuant to the unanimous vote of Council at their November 8, 2021 meeting, this Ordinance will reform the POSCC and PRGC into a combined Public Spaces Commission and will set forth the duties and authority of the reformed Commission. SECTION TWO. Article 1 of Division 1, Chapter 4 of the Ukiah City Code is hereby amended to read as follows: ARTICLE 1. PUBLIC SPACES COMMISSION §1000 CREATION Page 492 of 858 Attachment 1 2 There is hereby created a Public Spaces Commission. This advisory body shall report to the City Council. §1001 MEMBERSHIP; APPOINTMENT The Commission shall consist of seven (7) at large members who may reside within the City limits or outside the City limits but within the Ukiah Valley; provided, that a majority of the seven (7) Commission members must reside within the City limits. All members of the Commission shall be appointed by the City Council. §1002 TERM OF OFFICE; VACANCIES All appointments to this Commission shall be for a term of three (3) years. Reappointments to the Commission shall be pursuant to Article 5 of this chapter. §1003 DUTIES AND POWERS The Public Spaces Commission shall provide advice and recommendations to Council regarding 1) City-owned properties that are open to the public, such as parks, paths, and public right-of-ways; 2) creeks within the City limits; 3) open spaces within the City limits that are undeveloped and conserved or in consideration of future conservation; 4) and the recreational uses of these spaces. In addition, the Public Spaces Commission shall have the power and duty to: A. Solicit, collate, and analyze public input on the wise use of public spaces. B. Provide recommendations and advice to both City staff and the City Council based on said public input. C. If deemed necessary by the Commission, form working groups in collaboration with City staff to explore and formulate advice or recommendations on specific areas regarding the wise use of public spaces. D. Commission activities related to solicitation, review, and analysis of public input shall be guided by the Community Outreach Plan. The Commission shall prepare and annually update a Community Outreach Plan to be approved by City Council. The Community Outreach plan will guide the methodology, scheduling, and tracking of the Commission’s community engagement. E. The Commission shall hold at least six (6) regular meetings per year as scheduled and noticed in compliance with the annually updated Community Outreach Plan. It shall adopt rules for the transaction of business which shall be included in the Community Outreach Plan. F. The Commission shall keep a record of its transactions, findings, recommendations, and any other action item, which record shall be a public record. Page 493 of 858 Attachment 1 3 §1004 COMPENSATION The members of the Commission shall receive no compensation, except such traveling expenses as are authorized by law. §1005 CHAIRPERSON; OFFICERS The Commission shall elect a chairperson from among its members for a term of one year and may elect such other officers as it may determine. SECTION THREE. Article 1B of Division 1, Chapter 4 of the Ukiah City Code is hereby repealed. SECTION FOUR. 1. Publication: Within fifteen (15) days after its adoption, this Ordinance shall be published once in a newspaper of general circulation in the City of Ukiah. In lieu of publishing the full text of the Ordinance, the City may publish a summary of the Ordinance once 5 days prior to its adoption and again within fifteen (15) days after its adoption. 3. Effective Date: The ordinance shall become effective thirty (30) days after its adoption. Introduced by title only on ____________, 2022, by the following roll call vote: AYES: NOES: ABSENT: ABSTAIN: Adopted on ___________, 2022, by the following roll call vote: AYES: NOES: ABSENT: ABSTAIN: _______________ Jim O. Brown, Mayor ATTEST: _______ Kristine Lawler, City Clerk Page 494 of 858 1 Attachment 2 Public Spaces Commission Community Outreach Plan 11/2021 The Mission of the Public Spaces Commission (PSC) is to foster a culture of informed community participation in the planning and implementation of the wise use of public spaces. The seven-member PSC shall have the power and duty to solicit, collate, and analyze public input on the wise use of public spaces and; provide recommendations and advice to both staff and the City Council based on said input. Additionally, PSC members in collaboration with staff may choose to form “working groups” to explore and formulate advice or recommendations on specific areas regarding the wise use of public spaces. In support of the PSC mission, City staff will; 1. Convene Biannual Community Input Forums 2. Prepare a Quarterly Public Spaces E-Newsletter 3. Convene four time per year Public Input Forum planning meetings 4. Prepare and distribute a monthly Parks and Recreation Update Video 5. Provide staff support to working groups on mutually agreed upon topics 6. Assist the PSC in an annual update to this plan. Public Spaces Biannual Community Input Forums The Public Spaces Biannual Community Input Forums will be held as hybrid in-person and online events. Meetings will be planned to cover two to four prearranged topics with time available for discussion of an unplanned topic at attendee consensus request. The PSC will work with staff to decide upon topics and presenters. City staff will prepare presentations that will include Q&A sessions after the presentations. Forums will be recorded and available on the City You Tube Channel Prepare a Quarterly Public Spaces E-Newsletter E-Newsletter will cover the same topics as Community Input Forum to allow for an additional medium for distribution. E- Newsletter may contain additional material. E-Newsletter will be distributed to an interested parties list and be available online. Convene four time per year PSC Public Input Forum Planning and Workgroup meetings These meetings will allow PSC members the opportunity to work with staff to plan the Community Input Forums and to report on PSC working group activities. Prepare and distribute a monthly Parks and Recreation Update Video The Community Services Supervisor or Designee will record a video presentation with updates on the Parks and Recreation activities. The presentation will be based on the report that has traditionally been provided to the Parks, Rec, and Golf Commission (PRGC) but it will be made available to a much wider audience through You Tube, social, media, and e-newsletter. Working Groups PSC members will be encouraged to form Working Groups both among themselves as well as with members of the public to pursue areas of interest and to the benefit of effective City management. All working groups should have a City Council member of staff “sponsor” to ensure a collaborative approach. Page 495 of 858 1 Kristine Lawler Subject:12c Correspondence Received - Susan Knopf From: susan knopf <smknopf@yahoo.com>   Sent: Tuesday, January 18, 2022 2:34 PM  To: Kristine Lawler <klawler@cityofukiah.com>; Megan Prout <meganprout@gmail.com>; Jeanne Chinn  <jeannechinn@gmail.com>; Christopher Watt <wattc@lacoassociates.com>; Neil Davis <ndavis@cityofukiah.com>;  pinky kushner <pinkykushner@mac.com>; Linda Sanders <lsanders@pacific.net>; Bruni Kobbe  <bruni.kobbe@yahoo.com>; susan knopf <smknopf@yahoo.com>  Subject: Agenda item 12 c for City Council of 1‐19‐22  Gentlepeople of the City Council, This letter is to comment on issues for the proposed new commission. It's easier to explain if I go backwards: 1) People may choose to assess the activity of a commission by reviewing the minutes of Commission meetings. 2) As you know the City of Ukiah has chosen to use a form of minutes called "action minutes," which means that only motions are recorded in the minutes. No discussions are included in the minutes. 3) An item of interest must be on the agenda before a motion on the item can be initiated. Staff for both Parks, Rec and Golf, and Paths, Open Spaces and Creeks have often not respected Commissioner requests for an item to be put on the agenda. Staff have had numerous excuses, but the result is that Commissioners have not been able to initiate motions and, hence, actions. 4) Thus, no agenda item, no motion, no minutes, resulting in the question, "What have those Commissioners been doing?" It is, therefore, vital that Commissioners be allowed, even encouraged, to submit agenda items. With regard to POSCC, staff have repeatedly cancelled our meetings. My understanding of the Brown Act is that it is up to Commissioners to cancel the meetings. If we had managed to get an item on the agenda, and the meeting were cancelled, then staff repeatedly did not put that item on the next agenda, and it would get lost. Similarly, we can meet without a quorum, we just can't vote on motions. We appreciate the help that staff give us, but staff do not have to be present for a commission to meet. The Commissioners can still meet and the public and staff are welcome to attend. (We do not do business in confidential meetings.) Under such circumstances one of the Commissioners would volunteer to take the minutes. For example, one of the reasons staff cancelled meetings was because there was not an agenda. In a meeting we could discuss what items we would like to consider on future agendas. It is next to impossible to get things done under such circumstances, and it is remarkably frustrating. The comments above are great examples of how to discourage citizen input and participation. Commissioners must be allowed to meet. Commissioners must be allowed, even encouraged, to submit agenda items. Staff must respect a Commission's work, ideas and recommendations, even if there is staff, administrative or Council disagreement. Page 496 of 858 2 I love the comment I heard on the radio, "The system is exactly designed to get the results it gets." I appreciate your attempt to change and improve things. I suggest the following addition to the new ordinance Section Two, Article 1, Section 1003, first paragraph, " )4 open spaces outside the City limits which are under consideration for inclusion inside the City limits; 5)" Respectfully submitted, Susan Marie Knopf Acting Chair of POSCC Member of PR&G Page 497 of 858 Page 1 of 3 Agenda Item No: 12.d. MEETING DATE/TIME: 1/19/2022 ITEM NO: 2022-1219 AGENDA SUMMARY REPORT SUBJECT: Approve Contract Amendment Eight with Carollo Engineers for the Design Efforts of the Recycled Water Phase 4 Project in the amount of $4,600,773 and approval of corresponding budget amendment. DEPARTMENT: Public Works PREPARED BY: Jason Benson, Senior Civil Engineer PRESENTER: Tim Eriksen, Director of Public Works/City Engineer ATTACHMENTS: 1. Recycled Water Ph4 CO2 WWTP_12JAN2022 Summary: The City Council will consider giving approval of a contract amendment with Carollo Engineers for the design efforts of the Recycled Water Phase 4 project in the amount of $4,600,773 and approval of corresponding budget amendment. Background: The City Council approved contract amendments and the budget required for Carollo Engineers to continue with Recycled Water Phase 4 Design on November 7, 2018. The items issued in the Scope of Work to perform are Tasks 1-9: Project Management, Funding, Preliminary Design, Permitting and Easement, Field Investigation Services and Hydraulics, Bid Support, Engineering Services during Construction (ESDC), and Construction Management. This work is to be completed with the issued budget of $2,627,484.75. Two amendments, numbers 5 and 6, have been issued to the Carollo Contract 1314-231 for Phase 4 design work. Amendment 5 for Tasks 1-3: Project Management, Funding, Preliminary Design; and, Amendment 6 for Task 5: Field Investigation Services and Hydraulics. These amendments were approved 1/16/2019 and 5/3/2019, respectively. The four prior amendments approved for this contract work were for: additional geotechnical and environmental work, Recycled Water Phase 3 design, Chlorine Contact Basin (CCB) design, and additional CCB and Recycled Water Phase 3 design. Amendment 7 was issued to the Carollo Contract 1314-231 for Phase 4 design work under Tasks 1-6: Project Management, Funding, Preliminary Design, Permitting and Easement, Field Investigation Services and Hydraulics, and Final Design. Amendment 7 was approved by City Council on 9/16/2020. The 30% Design drawings and the Preliminary Design Report (PDR) were completed and submitted to the City in August 2019. This information was used by Carollo to submit an application for the State Revolving Fund (SRF) funding and coordination with the State. The 60% Design drawings were completed and submitted to the City, and the City reviewed and provided comment in September 2021. The 90% Design drawings were completed and submitted to the City, and the City reviewed and provided comment in January 2022. During project design meetings between City Staff and Carollo Engineers, it was tentatively agreed to have the design complete, shovel ready, and ready for the bidding process, pending project funding sources, in Spring 2022. Discussion: City Staff met with Carollo Engineers and California State Water Resources Control Board (CSWRCB) Staff in early November 2021. The topic of this meeting was to discuss the potential for a Prop. 68 and Infrastructure Grant to fully pay for the overall construction of the project, and would equate to Page 498 of 858 Page 2 of 3 approximately $25M. This would include design cost to date expended by the City, and may include City Staff cost during construction. The City directed Carollo Engineers to provide a change order for all scope changes and future engineering efforts (Attachment 1), per CSWRCB discussion. Carollo Engineers has worked diligently to provide the scope changes. The City is only engaging in the changes that will be covered by the new grant. On the water side of the Wastewater Treatment Plan (WWTP) process, recycled water is the final product from the Advanced Waste Treatment (AWT) and the Chlorine Contact Basin (CCB). Once treated water leaves the CCB, water is discharged to the Recycled Water ponds south of the WWTP. In order to have sufficient recycled water supply for all customers, an additional storage facility for secondary water is needed at the WWTP. The current process at the WWTP requires a lag time between process equipment to operate efficiently, and will remove using the percolation ponds for temporary storage. This will eliminate water loss to the environment and remove extra work time and cost by the WWTP crew to operate and maintain equipment. A new pond and pump station will provide storage of the secondary water before entering the process into the AWTs. The overall recycled water pipeline layout, the associated tank and pump station located at the Water Treatment Plant (WTP), and the appurtenances of it does not require design revisions since the last submittal of deliverables (December 2021). Carollo Engineers has prepared a revised Scope of Work and the necessary actions to perform Task 1-9. This includes a cost Change Order for the additional work for Task 1-6 and to include Task 7-9. The added cost is for a revision to the project design and the documents associated with this process (Task 1-6), and will incorporate the design changes for a new pond and pump station at the WWTP. Other added cost is for Task 7-9: Bid Support, Engineering Services during Construction (ESDC), Construction Management. Task 7-9 will be initiated through Task Orders to Carollo and approved for cost expenditure only when the project construction phases begin. Carollo Engineers has prepared a contract change order for a revised budget for the remaining and modified Tasks for the revised total contract budget of $6,471,103 (Attachment 1) for Phase 4. Carollo Engineers has prepared a contract change order for a revised budget for the remaining and modified Tasks to be completed at $4,600,773 (Attachment 1). This will increase the total contract value for all Recycled Water project work performed by Carollo Engineers (Phases 1-4 and CCB) to $10,644,367. City Staff has discussed the grant options and procedures for applications with CSWRCB and Carollo Engineers. In order to get through the grant application and finalization process, Carollo Engineers will have to perform administrative and engineering design work before the CSWRCB provides the City with a definative answer of the grant award to the City for construction and design cost of Phase 4. This will include geotechnical work, materials testing, site survey, production of design drawings, Engineer's Estimate for construction, and the preliminary report of findings. The estimated cost to the City for Carollo to get through the grant process is approximately fifty percent of the proposed amount for Task 1-6 in the amount of $864,433. This will include preliminary design of the WWTP pond and pump station upgrades, and if the grant is not approved, this design will already be in place for needed operational and critical plant updates. If the grant is approved, these costs will likely be eligible for reimbursement. Past and future amendments provide a Task Order to Carollo Engineers which only allows them to proceed with the scope of work when authorized by the City. To date, through Amendment 7 (dated September 4, 2020), Carollo Engineers is completing work described under Task 1-6. If the grant is not awarded or the City does not wish to continue work with Carollo Engineers for Task 7-9, Amendments for this work will not be executed by the City. Recommended Action: Approve contract amendment eight with Carollo Engineers for the design efforts of the Recycled Water Phase 4 project in the amount of $4,600,773 and approval of corresponding budget amendment. . Page 499 of 858 Page 3 of 3 BUDGET AMENDMENT REQUIRED: Yes CURRENT BUDGET AMOUNT: 83027330.80230.18052: $0 PROPOSED BUDGET AMOUNT: 83027330.80230.18052: $4,600,773 FINANCING SOURCE: Water Fund - 82000000.30007 PREVIOUS CONTRACT/PURCHASE ORDER NO.: Carollo Engineers - COU No. 1314-231 COORDINATED WITH: Tim Eriksen, Director of Public Works/City Engineer Page 500 of 858 1 CITY OF UKIAH RECYCLED WATER PROJECT – PHASE 4 DESIGN, ESDC, and CM CHANGE ORDER 2 January 12, 2022 After the Phase-4 30% design package was submitted, modifications to the alignment and design elements were recommended by the project team. A Change Order was submitted and approved to amend the original scope of work to include the new alignment and remove the design elements at the Wastewater Treatment Plant (WWTP). Funds for the additional design work were reallocated from Construction Management (CM) services. Recent discussions with the state have indicated that Ukiah will likely receive full grant funding for the Phase-4 project. The City has requested that Carollo provide a design to turn the existing sludge pond at the WWTP into additional storage to be used for reclaimed water delivery, include the WWTP upgrades that were identified in the original Preliminary Design Report, and provide an updated budget for ESDC and CM. New project elements are as followed: ·Define the full amount demo required for the existing sludge pond and any ground contamination. ·AWT Storage Ponds (ASP) will be upgraded by reconditioning the existing sludge lagoons, including sludge removal and installation of a liner, new drainage piping, and drain pump station. The existing digester overflow line that drains to the sludge lagoon will be relocated. ·A new pump station to convey flows from the pond to final treatment. ·New Geotech and Survey to support the pond and pump station. ·Upgrade existing package clarifier/filter Advanced Wastewater Treatment (AWT) units per the Westech budgetary proposal dated July 2019: - Install filter in-bed air scour. - Replace filter media. - Replace filter gravel support. - Retrofit waste gate assembly. - Replace analog backwash control level switch instrumentation with digital instrumentation. - Install new air scour blower pressure gauge and switch instrumentation. - Inspect steel clarifier/filter steel tank structure, repair and recoat. Modify structure to provide seismic anchorage ·Replace adsorption clarifier media of the package clarifier/filter AWT units. ·Replace the two existing backwash air blowers of the clarifier/filter AWT units and install a third new blower to provide air for the new filter in-bed air scour system. ·Replace the clarifier/filter AWT units effluent valves and install new filter air scour valves ATTACHMENT #1 Page 501 of 858 2 on each unit. · Replace pneumatic valve operators on the package clarifier/filter AWT units with electric operators to reduce maintenance and improve reliability. · Replace AWT existing PLCs and program to incorporate upgrades outlined above. · Replace one primary coagulant (ferric chloride) feed pump with smaller capacity pump to provide operational flexibility during times of low recycled water demand and reduce the production of excess chemical sludge in AWT system clarifiers. · Install rapid mix pump and flash mix assembly in the contact clarifier influent pipe to improve ferric chloride coagulant mixing. · Replace existing chlorine residual analyzer 3 (at the backwash pumping station) and chlorine residual analyzer 4 (at the dechlorination structure) with probe-type analyzers. · Install motor-operated valve and replacement valve on existing 24-inch FE/RW diversion line west of the dechlorination structure and a motor-operated valve on 24-inch river discharge line. Revise AWT CCB discharge flow meter piping to maintain full pipe flow in the flow meter. · Upgrade the Carousel Pump Station including adding a new pump to fill the AWT Storage Pond (ASP) and replacing the electrical equipment. Existing electrical service will be replaced with a new feeder from either the Generator or DAF building. · Structure 89 will be upgraded with a level sensor to control the ASP drain pump station. · Add additional time for Task 1 Project Management for the time extension and additional effort for the design change analysis. · Reestablish Carollo’s effort for construction management and adjust rates for a 2023 construction start. · Continue to support the City to apply for Grant Funds through the SRF application process. Table 1 provides a budget breakdown by task showing the revised estimated budgets. A detailed estimate for work to be authorized is provided as Exhibit A. Page 502 of 858 3 Table 1: Budget Adjustments Task Existing Contract Scope Delta New Total 1.0 Project Management $227,526 $133,021 $360,547 2.0 SRF Funding Applications and Coordination $78,429 $38,295 $116,724 3.0 Preliminary Design $303,298 $99,320 $402,618 4.0 Permitting & Easement $74,726 $16,296 $91,022 5.0 Field Investigative Services & Hydraulics $520,274 $213,864 $734,138 6.0 Final Design $666,077 $1,227,440 $1,893,517 7.0 Bid Support $42,019 $32,486 $74,505 8.0 ESDC $261,895 $347,412 $609,307 9.0 CM $453,240 $1,735,485 $2,188,725 Total $2,627,484.75 $3,843,618 $6,471,102.75 Assumptions: · Survey and geotech will begin upon notice to proceed (NTP). Survey, Geotech, and materials testing is provided as an allowance. · The pond will be stabilized with soil mixing. · The preliminary design report will be modified to show the new proposed work at the WWTP. The preliminary design will include one site drawing showing the footprint of the new pond. · The new design at the WWTP will be a standalone drawing and spec package. However, Phase 4 will be bid as a single contract for construction. · It is assumed record drawings are available for the WWTP and AWT for reference and use during design. Page 503 of 858 4 · The 50% design submittal will include a preliminary site plan for the WWTP and AWT improvements, including initial civil, demolition, structural, mechanical, electrical layouts, and P&IDs, a list of technical specifications, and a 50% construction estimate. · Carollo will develop 50%, 90% and 100% design packages. · It is anticipated that the WWTP design work will take approximately 130 drawings. · Design for the WWTP improvements is anticipated to take approximately 12 months. The revised Project Management Task 1 will take the project through this design schedule. After design project management tasks will be handled under the CM budget. · Carollo has provided a budgetary estimate to assist in providing information necessary for permit applications. · Carollo has provided a budgetary estimate for ESDC and CM support. The City and Carollo will modify the fee/scope for construction and bid support tasks when a final construction schedule has been identified. · CM budget is based upon a 24-month effort, rates shown are inclusive of anticipated travel and per diem, and construction office trailer to be provided by others. · Rates will increase yearly beginning January 1, 2023 for Tasks 1 through 8 and January 1, 2024 for Task 9. Page 504 of 858 Exhibit A - (January 12 2022) City of Ukiah Recycled Water Project - Phase 4 CO 2 For Approval PIC/PM PE Proc Struct Elec Permit Eng CAD QC/QC DP PIC CM CM Inspector EPIC Inspector Field Clerk Total Labor Munselle Crawford Alpine Summit JDH PECE ODC Total Task Task Description $311 $260 $285 $275 $275 $275 $190 $200 $311 $125 $255 $235 $205 $220 $125 Hours Cost Survey Geotech Cost Estimate CP $13.00 ODC Trips Amount Total Cost 1.0 Project Management and Meetings (15 months) 1.1 Project Management and Administration 98 45 0 0 0 0 0 0 0 30 0 0 0 0 0 173 $45,928 $0 $2,249 0 $0 $2,249 $48,177 1.2 Meetings 54 92 20 20 20 10 46 20 20 0 0 0 0 0 0 302 $79,124 $0 $3,926 12 $1,794 $5,720 $84,844 Task 1.0 Totals = 152 137 20 20 20 10 46 20 20 30 0 0 0 0 0 475 $125,052 Task 1.0 Totals = $133,021 2.0 SRF Funding Applications and Coordination 2.2 Grant Funding Coordiantion 90 0 0 0 0 0 45 0 0 0 0 0 0 0 0 135 $36,540 $0 $1,755 0 $0 $1,755 $38,295 Task 2.0 Totals = 90 0 0 0 0 0 45 0 0 0 0 0 0 0 0 135 $36,540 Task 2.0 Totals = $38,295 3.0 Preliminary Design 3.7 Develop Draft/Final PDR 16 20 0 0 0 0 40 0 8 8 0 0 0 0 0 92 $21,264 $0 $1,196 0 $0 $1,196 $22,460 3.9 30% Design (WWTP Improvements Layout Dwg)20 20 0 8 20 0 40 40 0 0 0 0 0 0 0 148 $34,720 $0 $1,924 1 $150 $2,074 $36,794 3.10 Basis of Design (WWTP Pond Storage)16 30 0 0 36 0 60 0 8 8 0 0 0 0 0 158 $37,564 $0 $2,054 3 $449 $2,503 $40,067 Task 3.0 Totals = 52 70 0 8 56 0 140 40 16 16 0 0 0 0 0 398 $93,548 Task 3.0 Totals = $99,320 4.0 Permitting & Easement 4.2 Prepare Permit Applications 8 8 0 0 0 40 0 0 0 0 0 0 0 0 0 56 $15,568 $0 $728 0 $0 $728 $16,296 Task 4.0 Totals = 8 8 0 0 0 40 0 0 0 0 0 0 0 0 0 56 $15,568 Task 4.0 Totals = $16,296 5.0 Field Investigative Services & Hydraulics 5.1 Topographic Survey 6 12 0 0 0 0 0 0 2 0 0 0 0 0 0 20 $5,608 $90,000 $99,000 $260 0 $0 $99,260 $104,868 5.2 Geotechnical Investigations 2 8 0 4 0 0 0 0 2 0 0 0 0 0 0 16 $4,424 $80,500 $88,550 $208 0 $0 $88,758 $93,182 5.3 Potholing 8 4 0 0 0 0 8 0 1 0 0 0 0 0 0 21 $5,359 $0 $273 1 $150 $423 $5,782 5.4 Surge Analysis 2 32 0 0 0 0 0 0 2 0 0 0 0 0 0 36 $9,564 $0 $468 0 $0 $468 $10,032 Task 5.0 Totals = 18 56 0 4 0 0 8 0 7 0 0 0 0 0 0 93 $24,955 Task 5.0 Totals = $213,864 6.0 Final Design 6.5 50%, 90%, & 100% WWTP Improvements (Submittal Review Meetings)16 32 16 20 85 0 8 8 0 0 0 0 0 0 0 185 $49,851 $60,000 $66,000 $2,405 $500 6 $897 $69,802 $119,653 6.6 50%, 90%, & 100% WWTP Improvements (Design)160 834 506 200 428 0 465 1,530 120 154 0 0 0 0 0 4,397 $1,034,430 $57,161 $3,000 6 $897 $61,058 $1,095,488 Task 6.0 Totals = 176 866 522 220 513 0 473 1,538 120 154 0 0 0 0 0 4,582 $1,084,281 Task 6.0 Totals = $1,227,440 7.0 Bid Support 7.1 Attend Pre Bid Meeting 8 8 0 0 0 0 0 0 0 0 0 8 0 0 0 24 $6,448 $0 $281 1 $150 $430 $6,878 7.2 RFI Review & Response & Addenda 4 30 8 8 8 0 8 36 0 2 0 0 0 0 0 104 $24,818 $0 $1,221 0 $0 $1,221 $26,040 7.3 Conformed Documentation 4 16 0 16 16 0 36 80 2 8 0 0 0 0 0 178 $38,511 $0 $2,077 $1,000 0 $0 $3,077 $41,587 Task 7.0 Totals = 16 54 8 24 24 0 44 116 2 10 0 8 0 0 0 306 $69,777 Task 7.0 Totals = $74,505 8.0 Engineering Services During Construction 8.1 Construction Contract Award 4 8 0 0 0 0 0 0 0 0 0 0 0 0 0 12 $3,324 $0 $140 0 $0 $140 $3,464 8.2 Pre-Construction Conference 8 8 0 0 8 0 8 0 0 0 0 0 0 0 0 32 $8,288 $0 $374 0 $0 $374 $8,662 8.3 Engineer's Site Observation 48 96 40 8 24 0 48 0 0 0 0 0 0 0 0 264 $69,208 $0 $3,089 18 $2,691 $5,780 $74,988 8.4 Submittals Review 60 300 120 160 160 0 0 0 0 0 0 0 0 0 0 800 $218,860 $0 $9,360 0 $0 $9,360 $228,220 8.5 Responses to Contractor's RFIs 5 60 20 20 20 0 0 10 0 0 0 0 0 0 0 135 $35,855 $0 $1,580 0 $0 $1,580 $37,435 8.6 Review and Preparation of Design Clarifications 2 16 8 8 8 8 0 32 0 0 0 0 0 0 0 82 $20,062 $0 $959 0 $0 $959 $21,021 8.7 Record Drawings 16 24 20 0 0 0 100 600 16 40 0 0 0 0 0 816 $165,892 $0 $9,547 0 $0 $9,547 $175,439 8.8 Substantial and Final Completion Assistance 2 32 0 0 0 0 16 0 0 0 0 0 0 0 0 50 $11,982 $0 $585 1 $150 $735 $12,717 8.9 Training and Commissioning 8 32 0 0 32 0 0 0 0 0 0 0 0 0 0 72 $19,608 $0 $842 2 $299 $1,141 $20,749 8.10 Operations and Maintenance Manuals 8 16 40 0 16 0 16 0 0 0 0 0 0 0 0 96 $25,488 $0 $1,123 0 $0 $1,123 $26,611 Task 8.0 Totals = 161 592 248 196 268 8 188 642 16 40 0 0 0 0 0 2,359 $578,567 Task 8.0 Totals = $609,307 9.0 Construction Management 9.1 Preconstruction Services 0 0 0 0 0 0 0 0 0 0 5 40 0 0 0 45 $10,675 $0 $527 $25,000 0 $0 $25,527 $36,202 9.2 Services During Construction 0 0 0 0 0 0 0 0 0 0 204 4,080 4,080 612 0 8,976 $1,981,860 $0 $105,019 $7,806 0 $0 $112,825 $2,094,685 9.3 Material Testing 0 0 0 0 0 0 0 0 0 0 0 0 40 0 0 40 $8,200 $30,710 $33,781 $468 0 $0 $34,249 $42,449 9.4 Startup and Testing 0 0 0 0 0 0 0 0 0 0 16 16 16 16 0 64 $14,640 $0 $749 0 $0 $749 $15,389 Task 9.0 Totals = 0 0 0 0 0 0 0 0 0 0 225 4,136 4,136 628 0 9,125 $2,015,375 Task 9.0 Totals = $2,188,725 Project Totals = 673 1,783 798 472 881 58 944 2,356 181 250 225 4,144 4,136 628 0 17,529 $4,043,663 $90,000 $111,210 $60,000 $10,000 $298,331 $212,549 $38,306 53 $7,924 $557,109 $4,600,772.23 Subconsultants Fee Mileage Other Direct Costs (ODC) Carollo Labor Includes 10% Markup Subconsultant Page 505 of 858 Page 1 of 2 Agenda Item No: 12.e. MEETING DATE/TIME: 1/19/2022 ITEM NO: 2022-1221 AGENDA SUMMARY REPORT SUBJECT: Consider Adoption of Resolution Adopting a 2022 Advocacy Platform to Serve as Guidelines for Local, State, and Federal Legislative Matters. DEPARTMENT: City Manager / Admin PREPARED BY: Shannon Riley, Deputy City Manager PRESENTER: Shannon Riley, Deputy City Manager ATTACHMENTS: 1. Advocacy Platform and Resolution_2022_highlighted 2. Advocacy Platform and Resolution_2022_clean 3. 2022 League of CA Cities Priorities Summary: Council will consider adoption of a Resolution adopting a 2022 Advocacy Platform to provide guidance regarding local, state and federal legislative and judicial matters, and allow the City to weigh in on such matters in a timely fashion. An advocacy platform enables the Mayor and/or City Manager, or their designee, to submit letters or other filings on behalf of the City if the proposed matter is within the City’s adopted advocacy platform guidelines. Additionally, platform guidelines enable the City to actively participate in the regional, state and federal legislative processes on behalf of the City of Ukiah. Background: The ability of the City to serve the residents and provide for a thriving and sustainable community requires support from all levels of government. Local government is uniquely and best positioned to support, serve, and respond to community and individual needs. However, with local, state and federal legislative policy and judicial matters, action is often needed to support local government in having this impact. These legislative policies and legal actions can affect the City's ability to deliver services, shape what services are delivered, impact the resources available for services, and remove obstacles to delivering services. These policies sometimes require immediate attention. The Ukiah City Council has annually adopted a Platform and a corresponding resolution, most recently in February 2021. A number of new items, which reflect recent Council direction or current City activities, have been added to the document. New items are shown in yellow highlight on Attachment 1, and a clean version of the proposed 2022 Advocacy Resolution and Platform is provided as Attachment 2. Discussion: In order to fulfill the City’s commitment to the community, positive local, state and federal action-- including the allocation of resources--should be sought. The Advocacy Platform is also consistent with the 2022 goals and priorities of the League of California Cities ("the League"), provided as Attachment 3. The proposed 2022 Advocacy Platform from the City states it does not take positions on matters outside the scope and purpose of municipal government. Occasionally, the City is asked to take positions that do not materially affect the scope and purpose of our municipal government; these tend to be quality of life or social issues; or federal government matters like foreign policy. The Platform would not preclude the Mayor or Councilmembers from placing an item on the agenda for Page 506 of 858 Page 2 of 2 consideration. However, it would provide guidance to others about positions typically taken by the City Council. To this end, if the City should adopt/update the proposed 2022 Advocacy Platform, it would provide a guide for the City’s legislative advocates and highlight key issues important to the local community. The Platform provides 14 over-arching guiding principles intended for specific legislative and legal action and supports existing City Council-established goals and policies. The priorities outlined streamline the legislative approval process by providing clear direction on pertinent issues for our community. It is by no means all- encompassing. As previously stated, the Platform is reviewed by Council on an annual basis in coordination with the State’s legislative calendar, and will continue to be listed on the tracking calendar for Council review in January of each year. Staff recommends the adoption of the proposed Resolution that includes the 2022 Advocacy Platform providing overall guidance that allows the Mayor, and/or City Manager, or their designee, to send/file support or opposition to the League and other agencies/organizations to protect or advocate for our community. Recommended Action: Adopt resolution adopting a 2022 Advocacy Platform to serve as guidelines for local, state, and federal legislative, administrative, regulatory and court matters. BUDGET AMENDMENT REQUIRED: N/A CURRENT BUDGET AMOUNT: N/A PROPOSED BUDGET AMOUNT: N/A FINANCING SOURCE: N/A PREVIOUS CONTRACT/PURCHASE ORDER NO.: N/A COORDINATED WITH: Sage Sangiacomo, City Manager Page 507 of 858 RESOLUTION NO. 2022- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF UKIAH APPROVING AND ADOPTING A 2022 ADVOCACY PLATFORM WHEREAS; an advocacy platform is a tool that the City Council and staff can utilize to support the goals and objectives of the City; and WHEREAS, the Calif ornia State Legislature alone considers thousands of bills during each two- year legislative session, state and federal administrative agencies establish policies and engage in rule-making and many precedent setting decision are heard by the California and federal courts of appeal and the California and United States Supreme Court; and any number of these bills, administrative actions and regulations and court cases can affect cities—through changes in f unding, employment law, or water regulation as examples; and WHEREAS, development of an Advocacy Platform provides the opportunity to identify issues and priorities that may be addressed through legislative and administrative advocacy and amicus briefs to California and federal appellate courts; and WHEREAS, the City desires to be proactive and involved in the governmental, administrative and judicial decision-making process directly affecting the City of Ukiah and the League of Calif ornia Cities; and WHEREAS, the platf orm will also be used when applicable on other local, regional, state, and f ederal matters not evaluated by the League; and WHEREAS, adoption of a 2022 Advocacy Platform enables the City Council and staff to react quickly to most legislative or administrative issues or the filing of amicus briefs as they arise; and WHEREAS, the 2022 Advocacy Platform can be provided to State and Federal representatives so they are made aware of the issues that are important to Ukiah; and WHEREAS, the City Council wishes to adopt the 2022 Advocacy Platform which provides overall guidance that allows the City Manager and the Mayor, or their designee, to send letters of support or opposition to the League, the local, state and federal legislatures and administrative agencies and to participate in amicus briefs to the state and federal appellate courts in certain instances. NOW, THEREFORE BE IT RESOLVED, that the City Council of the City of Ukiah hereby adopts a “2022 Advocacy Platform,” attached as “Exhibit A” to this Resolution. Further, any activity taken under the legislative platform will be reported to the City Council, and all letters of support/opposition will be documented and forwarded to the City Council and included within the “Petitions and Communications” section of the subsequent council meeting following issuance for public review. Attachment 1 Page 508 of 858 DULY AND REGULARLY ADOPTED this 19th day of January 2022. AYES: NOES: ABSTAIN: ABSENT: CITY OF UKIAH Jim O. Brown, Mayor ATTEST: Kristine Lawler, City Clerk Page 509 of 858 1 2022 City of Ukiah Advocacy Platform Exhibit A 2022 Advocacy Platform PRIORITIES The City of Ukiah takes the following positions and the Mayor and the City Manager may send corresponding letters of opposition or support without further City Council action and, whenever filing deadlines preclude prior City Council action, may authorize naming the City as a party to an amicus brief to be filed in state or federal court, provided the City incurs no cost to join the amicus brief. A. Finance Protect Local Revenue Sources The City opposes attempts to decrease, restrict or eliminate city revenue sources and opposes any efforts at the local, state or federal level to retain additional revenues currently dedicated to local government for state purposes. Municipal Bond Tax Oppose any effort to eliminate, or cap, the tax-exempt status of municipal bonds, one of the few tools left for local governments to finance large capital projects. Replace Lost Redevelopment Funding Seek, promote, and implement any new or alternative approaches that may replace redevelopment funding mechanisms that deliver positive benefits to Ukiah. Unfunded Mandates Oppose measures that would impose State and Federal mandated costs for which there is no guarantee of local reimbursement or offsetting benefits (i.e., unfunded mandates). Control Workers’ Compensation and Public Retirement Costs Support legislation and policy that control escalating workers’ compensation and public retirement system costs to public agencies and taxpayers. B. Utilities Local Utility Services The City opposes any regulations or legislative actions or court decision that would eliminate or limit the City’s ability to provide utility services within the incorporated jurisdiction. Energy Value The City supports any legislative or regulatory action that increases the energy value for the electric customer. Cap and Trade Program The City supports the use of California Air Resources Board’s (CARB) Cap and Trade program allowances and energy resources that are clean, renewable and cost effective. Wireless and Telecommunication Facilities Oppose any federal or state legislation or regulatory policy that would further erode the ability of local governments to regulate wireless and other telecommunication facilities. Local Water Use Control Support efforts to maintain and strengthen local control of water use and Page 510 of 858 2022 City of Ukiah Advocacy Platform encourage water recycling and the many benefits of sustainability to Ukiah’s water supply, conserving the vital resource of potable water, and protecting our diverse water portfolio. C. Local Control Sustainable, Reliable Funding The City supports local, state and federal budget plans that provide sustainable, reliable funding for priority local government programs. Local Control and Streamlining Regulations The City values its ability and authority to exercise local control, enable excellent public services and protect and enhance the quality of life for Ukiah residents and businesses. The City supports efforts to streamline regulations that simplify the job of running the City and opposes efforts that erode the City’s authority to control its own affairs. Housing and Homelessness The City supports legislation that provides Cities additional funding and tools and preserves local authority to address housing production, affordability, and homelessness challenges. D. Transportation and Streets ` Transportation Infrastructure The City supports increases in transportation funding for local street and road improvements to promote investing in the maintenance and rehabilitation of aging infrastructure. Alternative Funding Solutions Support legislation that reduces local reliance on local gas tax revenues for roads and streets improvements and proposes new alternative funding solutions with longer-term sustainability E. Economic Development Economic Development Opportunities The City embraces efforts to obtain funding for economic development and environmental initiatives, including planning and implementation of regional transportation and traffic congestion relief projects, and the creation of affordable housing. The City also supports legislation that provides incentives for job creation and retention, including legislation that increases funding and allowable uses for the Community Development Block Grant program. F. Environmental Clean Environment The City supports policy that advocates for a clean environment and policy to improve environmental standards and promote sustainable energy policies. G. Public Safety Public Safety Resources The City supports legislation and policies that enable local officials to access resources to provide quality police, fire, emergency management, emergency medical services, youth violence prevention initiatives, and to engage the community in its own safety. Street Outreach Teams Support new funding from the county, state, and federal government for Page 511 of 858 2022 City of Ukiah Advocacy Platform expanded Street Outreach Teams in collaboration with law enforcement, first responders, and the County’s health and mental health departments for those affected by homelessness and mental health issues. Funding to Remove and Clean Homeless Encampments Support new funding from county, state, and federal sources for the legal removal and storage of homeless belongings and cleanup of areas impacted by illegal camping, including the abatement of abandoned vehicles. Supportive Programs and Solutions Support legislation that assists in preventing and reducing crime, such as intervention and prevention programs, mental health initiatives, enhanced protective equipment, and solutions for at-risk individuals. Support De-escalation Training Support police reform legislation that provides de-escalation training and the funding for such training, and that reduces unnecessary and excessive use of force. Graffiti Abatement Support legislation that would strengthen state graffiti law and provide local government revenue and resources for graffiti abatement. Speed Limits Support legislation that would allow local jurisdictions to set speed limits based upon safety findings and/or provide provisions for cost recovery of traffic enforcement. H. Parks, Open Space, and Community Sustainable Quality of Life The City values a sustainable quality of life and supports parks and open space, recreation facilities, environmental and climate protection, resource conservation, libraries, arts and culture and legislation and policies that emphasize sustainable development. Park Infrastructure Support legislation that provides funding for rehabilitation, development, and capital improvements of local parks, open space, and community facilities. Public Art Support legislation that provides funding to support public art, both performing and visual. Funding for Youth and Seniors Support legislation that provides local funding for youth and senior recreational and enrichment programming. I. Emergency Management Disaster Management The City supports policy that helps improve disaster preparedness, response, recovery, and climate resiliency. Funding for Emergency Management Support legislation, strategies, and initiatives that provide increased local, state, and federal funding for emergency and disaster preparedness, planning, response, and recovery. Page 512 of 858 2022 City of Ukiah Advocacy Platform J. Public Workforce Sustainable Pension and Retirement Health Benefits The City supports policy that promotes the sustainability of public pension and retirement health benefits. Competitive and Valuable Employment Advocate for legislation that supports the City’s ability to provide competitive and valuable employment opportunities. K. Planning and Land Use Projects in the Sphere of Influence Oppose project entitlements in areas outside the City limits, but within the City’s General Plan proposed sphere of influence that do not conform to current City standards and/or standards within the Ukiah Valley Area Plan. Changes of Organization Oppose requests for changes of organization (primarily, annexation) from other entities and agencies if those requests are done without prior collaboration with the City and are proposed within the City’s Sphere of Influence. Regional Planning Support regional planning initiatives, especially those that may increase the supply of housing and employment opportunities for residents. Long-Term Planning Support legislation and funding initiatives for long-term planning efforts related to affordable housing, economic development, and climate change adaptation and resiliency. L. Diversity, Equity and Inclusion Equitable Access Support legislation and funding that helps the City of Ukiah provide residents with equitable access to City employment, programs and services. Eliminating Barriers Support legislation and funding that will allow the City and its community partners to provide all residents with the tools necessary to grow and thrive. Community Engagement Support legislation and funding for the City and its community partners to proactively engage with residents on issues of prejudice, discrimination, and social justice to promote education, understanding, expanded opportunity, value, and acceptance of the diverse groups within our community, creating an environment where all feel welcome and safe in Ukiah. Page 513 of 858 RESOLUTION NO. 2022- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF UKIAH APPROVING AND ADOPTING A 2022 ADVOCACY PLATFORM WHEREAS; an advocacy platform is a tool that the City Council and staff can utilize to support the goals and objectives of the City; and WHEREAS, the Calif ornia State Legislature alone considers thousands of bills during each two- year legislative session, state and federal administrative agencies establish policies and engage in rule-making and many precedent setting decision are heard by the California and federal courts of appeal and the California and United States Supreme Court; and any number of these bills, administrative actions and regulations and court cases can affect cities—through changes in f unding, employment law, or water regulation as examples; and WHEREAS, development of an Advocacy Platform provides the opportunity to identify issues and priorities that may be addressed through legislative and administrative advocacy and amicus briefs to California and federal appellate courts; and WHEREAS, the City desires to be proactive and involved in the governmental, administrative and judicial decision-making process directly affecting the City of Ukiah and the League of Calif ornia Cities; and WHEREAS, the platf orm will also be used when applicable on other local, regional, state, and f ederal matters not evaluated by the League; and WHEREAS, adoption of a 2022 Advocacy Platform enables the City Council and staff to react quickly to most legislative or administrative issues or the filing of amicus briefs as they arise; and WHEREAS, the 2022 Advocacy Platform can be provided to State and Federal representatives so they are made aware of the issues that are important to Ukiah; and WHEREAS, the City Council wishes to adopt the 2022 Advocacy Platform which provides overall guidance that allows the City Manager and the Mayor, or their designee, to send letters of support or opposition to the League, the local, state and federal legislatures and administrative agencies and to participate in amicus briefs to the state and federal appellate courts in certain instances. NOW, THEREFORE BE IT RESOLVED, that the City Council of the City of Ukiah hereby adopts a “2022 Advocacy Platform,” attached as “Exhibit A” to this Resolution. Further, any activity taken under the legislative platform will be reported to the City Council, and all letters of support/opposition will be documented and forwarded to the City Council and included within the “Petitions and Communications” section of the subsequent council meeting following issuance for public review. Attachment 2 Page 514 of 858 DULY AND REGULARLY ADOPTED this 19th day of January 2022. AYES: NOES: ABSTAIN: ABSENT: CITY OF UKIAH Jim O. Brown, Mayor ATTEST: Kristine Lawler, City Clerk Page 515 of 858 1 2022 City of Ukiah Advocacy Platform Exhibit A 2022 Advocacy Platform PRIORITIES The City of Ukiah takes the following positions and the Mayor and the City Manager may send corresponding letters of opposition or support without further City Council action and, whenever filing deadlines preclude prior City Council action, may authorize naming the City as a party to an amicus brief to be filed in state or federal court, provided the City incurs no cost to join the amicus brief. A. Finance Protect Local Revenue Sources The City opposes attempts to decrease, restrict or eliminate city revenue sources and opposes any efforts at the local, state or federal level to retain additional revenues currently dedicated to local government for state purposes. Municipal Bond Tax Oppose any effort to eliminate, or cap, the tax-exempt status of municipal bonds, one of the few tools left for local governments to finance large capital projects. Replace Lost Redevelopment Funding Seek, promote, and implement any new or alternative approaches that may replace redevelopment funding mechanisms that deliver positive benefits to Ukiah. Unfunded Mandates Oppose measures that would impose State and Federal mandated costs for which there is no guarantee of local reimbursement or offsetting benefits (i.e., unfunded mandates). Control Workers’ Compensation and Public Retirement Costs Support legislation and policy that control escalating workers’ compensation and public retirement system costs to public agencies and taxpayers. B. Utilities Local Utility Services The City opposes any regulations or legislative actions or court decision that would eliminate or limit the City’s ability to provide utility services within the incorporated jurisdiction. Energy Value The City supports any legislative or regulatory action that increases the energy value for the electric customer. Cap and Trade Program The City supports the use of California Air Resources Board’s (CARB) Cap and Trade program allowances and energy resources that are clean, renewable and cost effective. Wireless and Telecommunication Facilities Oppose any federal or state legislation or regulatory policy that would further erode the ability of local governments to regulate wireless and other telecommunication facilities. Local Water Use Control Support efforts to maintain and strengthen local control of water use and Page 516 of 858 2022 City of Ukiah Advocacy Platform encourage water recycling and the many benefits of sustainability to Ukiah’s water supply, conserving the vital resource of potable water, and protecting our diverse water portfolio. C. Local Control Sustainable, Reliable Funding The City supports local, state and federal budget plans that provide sustainable, reliable funding for priority local government programs. Local Control and Streamlining Regulations The City values its ability and authority to exercise local control, enable excellent public services and protect and enhance the quality of life for Ukiah residents and businesses. The City supports efforts to streamline regulations that simplify the job of running the City and opposes efforts that erode the City’s authority to control its own affairs. Housing and Homelessness The City supports legislation that provides Cities additional funding and tools and preserves local authority to address housing production, affordability, and homelessness challenges. D. Transportation and Streets ` Transportation Infrastructure The City supports increases in transportation funding for local street and road improvements to promote investing in the maintenance and rehabilitation of aging infrastructure. Alternative Funding Solutions Support legislation that reduces local reliance on local gas tax revenues for roads and streets improvements and proposes new alternative funding solutions with longer-term sustainability E. Economic Development Economic Development Opportunities The City embraces efforts to obtain funding for economic development and environmental initiatives, including planning and implementation of regional transportation and traffic congestion relief projects, and the creation of affordable housing. The City also supports legislation that provides incentives for job creation and retention, including legislation that increases funding and allowable uses for the Community Development Block Grant program. F. Environmental Clean Environment The City supports policy that advocates for a clean environment and policy to improve environmental standards and promote sustainable energy policies. G. Public Safety Public Safety Resources The City supports legislation and policies that enable local officials to access resources to provide quality police, fire, emergency management, emergency medical services, youth violence prevention initiatives, and to engage the community in its own safety. Street Outreach Teams Support new funding from the county, state, and federal government for Page 517 of 858 2022 City of Ukiah Advocacy Platform expanded Street Outreach Teams in collaboration with law enforcement, first responders, and the County’s health and mental health departments for those affected by homelessness and mental health issues. Funding to Remove and Clean Homeless Encampments Support new funding from county, state, and federal sources for the legal removal and storage of homeless belongings and cleanup of areas impacted by illegal camping, including the abatement of abandoned vehicles. Supportive Programs and Solutions Support legislation that assists in preventing and reducing crime, such as intervention and prevention programs, mental health initiatives, enhanced protective equipment, and solutions for at-risk individuals. Support De-escalation Training Support police reform legislation that provides de-escalation training and the funding for such training, and that reduces unnecessary and excessive use of force. Graffiti Abatement Support legislation that would strengthen state graffiti law and provide local government revenue and resources for graffiti abatement. Speed Limits Support legislation that would allow local jurisdictions to set speed limits based upon safety findings and/or provide provisions for cost recovery of traffic enforcement. H. Parks, Open Space, and Community Sustainable Quality of Life The City values a sustainable quality of life and supports parks and open space, recreation facilities, environmental and climate protection, resource conservation, libraries, arts and culture and legislation and policies that emphasize sustainable development. Park Infrastructure Support legislation that provides funding for rehabilitation, development, and capital improvements of local parks, open space, and community facilities. Public Art Support legislation that provides funding to support public art, both performing and visual. Funding for Youth and Seniors Support legislation that provides local funding for youth and senior recreational and enrichment programming. I. Emergency Management Disaster Management The City supports policy that helps improve disaster preparedness, response, recovery, and climate resiliency. Funding for Emergency Management Support legislation, strategies, and initiatives that provide increased local, state, and federal funding for emergency and disaster preparedness, planning, response, and recovery. Page 518 of 858 2022 City of Ukiah Advocacy Platform J. Public Workforce Sustainable Pension and Retirement Health Benefits The City supports policy that promotes the sustainability of public pension and retirement health benefits. Competitive and Valuable Employment Advocate for legislation that supports the City’s ability to provide competitive and valuable employment opportunities. K. Planning and Land Use Projects in the Sphere of Influence Oppose project entitlements in areas outside the City limits, but within the City’s General Plan proposed sphere of influence that do not conform to current City standards and/or standards within the Ukiah Valley Area Plan. Changes of Organization Oppose requests for changes of organization (primarily, annexation) from other entities and agencies if those requests are done without prior collaboration with the City and are proposed within the City’s Sphere of Influence. Regional Planning Support regional planning initiatives, especially those that may increase the supply of housing and employment opportunities for residents. Long-Term Planning Support legislation and funding initiatives for long-term planning efforts related to affordable housing, economic development, and climate change adaptation and resiliency. L. Diversity, Equity and Inclusion Equitable Access Support legislation and funding that helps the City of Ukiah provide residents with equitable access to City employment, programs and services. Eliminating Barriers Support legislation and funding that will allow the City and its community partners to provide all residents with the tools necessary to grow and thrive. Community Engagement Support legislation and funding for the City and its community partners to proactively engage with residents on issues of prejudice, discrimination, and social justice to promote education, understanding, expanded opportunity, value, and acceptance of the diverse groups within our community, creating an environment where all feel welcome and safe in Ukiah. Page 519 of 858 Attachment 3 League of California Cities adopts 2022 State Action Agenda Dec 3, 2021 Contact: Kayla Sherwood ksherwood@calcities.org (530) 844-1744 FOR IMMEDIATE RELEASE Sacramento – Today, the League of California Cities Board of Directors adopted the organization’s 2022 Action Agenda during its meeting. City leaders who serve in leadership positions in Cal Cities divisions, departments, policy committees, and diversity caucuses convened during meetings over the last month to chart the organization’s priorities for 2022 and ensure they are laser focused on the issues most critical to our cities and the residents our members serve. The 2022 Action Agenda is as follows: 1. Secure funding to increase the supply and affordability of housing and reform state housing laws to retain local authority. Secure adequate and sustainable funding for cities to increase construction of housing at all income levels, particularly affordable housing and workforce housing. Reform state housing laws to ensure cities retain local decision-making to meet the needs of their communities. 2. Attain investments to strengthen and sustain critical infrastructure. Advocate for policies that strengthen the conditions of local streets, highways, bridges, public transit, and broadband to improve workforce and economic development. Secure support for the modernization and expansion of the statewide water grid, including infrastructure, storage, and conveyance. Work with stakeholders to provide cities with access to the tools needed to ensure projects are delivered efficiently and cost-effectively to meet current and future needs. 3. Secure increased funding and resources to prevent homelessness and assist individuals experiencing homelessness. Secure additional ongoing, flexible resources to provide navigation assistance, emergency shelters, and permanent supportive housing. Enhance city and county coordination and strengthen partnerships with stakeholders to ensure adequate wraparound services are available for adults and youth at risk of, or already experiencing, homelessness in our communities, and effectively address mental health and substance use disorders. 4. Strengthen disaster preparedness, resiliency, and recovery from climate change impacts through improved collaboration and resources. Secure additional resources and support to mitigate the effects of climate change, including catastrophic wildfires, drought, and sea level rise. Promote collaboration with other city, state, and federal governments, to strengthen disaster preparedness, resiliency, and recovery. “Housing, homelessness, critical infrastructure, and the impacts of climate change — these priorities have been at the heart of local leaders’ efforts for years,” said League of California Cities President and Walnut Creek Council Member Cindy Silva. “The pandemic exacerbated these issues, many of them decades in the making, and highlighted the importance of a strong state investment to ensure cities Page 520 of 858 Attachment 3 have the resources necessary to protect their communities and improve the quality of life for all those who call California home.” With its agenda now set, Cal Cities will begin working immediately to advance these objectives in the state capitol. “As local officials continue to display remarkable resilience in their commitment to serving their cities, the state has yet another opportunity in 2022 to invest directly into our communities and create truly transformative change for California’s residents,” said League of California Cities Executive Director and CEO Carolyn Coleman. “California’s cities will be actively seeking the state’s partnership that will ensure an equitable recovery for all of our communities next year.” Cal Cities’ Action Agenda for 2022 is available at www.calcities.org/action-agenda. Established in 1898, the League of California Cities is a nonprofit statewide association that advocates for cities with the state and federal governments and provides education and training services to elected and appointed city officials. Page 521 of 858 Page 1 of 2 Agenda Item No: 13.a. MEETING DATE/TIME: 1/19/2022 ITEM NO: 2022-16 AGENDA SUMMARY REPORT SUBJECT: Adopt a Resolution Authorizing the Exception to the 180-Day Waiting Period, and Authorizing the City’s Retired Electric Utility Director to Work on a Temporary Basis as an Extra Help Employee in Accordance with Government Code Sections 7522.56 and 21224. DEPARTMENT: Electric Utility PREPARED BY: Sheri Mannion, H.R. Director/Risk Manager, Cindy Sauers, Electric Utility Director PRESENTER: Cindy Sauers, Electric Utility Director; Sheri Mannion, Human Resources/Risk Management Director ATTACHMENTS: 1. Attachment 1 - Resolution Authorizing the Exception of the 180-Day Waiting Period Summary: Council will consider adopting a resolution authorizing the exception of the 180-day waiting period, and authorizing the City’s retired Electric Utility Director, Mel Grandi, to work on a temporary basis as an extra help employee. Background: The Public Employee’s Pension Reform Act of 2013 (PEPRA) made substantial changes to public employee pension laws in California. One of those changes requires retired annuitants to be separated from employment for at least 180 days before returning to work for an employer in the same retirement system from which they receive a pension. An exception may be made if the governing body adopts a resolution to waive the waiting period, certifying the nature of the appointment is necessary to fill a critical need and is of limited duration. The appointment may not be placed on a consent calendar. Discussion: In January 2019, a part-time Assistant Electric Utility Director position was created to assist the Director with high level operational and management tasks including the planning and supervision of the day to day activities of the department as well as participating with other agencies in the procurement, scheduling and delivery of energy to the City. During the COVID pandemic, the management work was divided with much of the day to day activities being handled by the Assistant and the energy procurement, scheduling, and delivery being handled by the Director. In July 2020, the Assistant Director position was changed to full time, and was anticipated to prepare the Assistant Director to be a potential candidate for the Director position upon his retirement. After 14 years at the City of Ukiah, Mel Grandi retired as the Electric Utility Director on December 30, 2021. Ukiah's Electric Utility and the industry are experiencing a shortage of experienced energy professionals who, in Ukiah, are responsible for multi-million dollar and highly technical decisions that impact the city and customers. Additionally, the complexities of COVID has hindered the training and developing experience with energy, renewable, and carbon markets and policies. For these reasons, the department desires to employ Mr. Grandi on a temporary, hourly basis to assist with the transition and to continue the transfer of knowledge related to the procurement, scheduling, and delivery of energy, which is 2/3 of the Department's budget. Mr. Grandi's vast knowledge of the industry and the challenges it is currently facing will assist the Department with a smooth and successful transition. Staff recommends Council adopt a resolution (Attachment 1) authorizing the exception to the 180-day waiting Page 522 of 858 Page 2 of 2 period, and authorizing the City’s retired Electric Utility Director to work on a temporary basis as an extra help employee. Recommended Action: Adopt a resolution authorizing the exception to the 180-day waiting period, and authorizing the City’s retired Electric Utility Director to work on a temporary basis as extra help employee in accordance with Government Code Sections 7522.56 and 21224. BUDGET AMENDMENT REQUIRED: None CURRENT BUDGET AMOUNT: $130,860 80026400.51110; 80026110.51110, $52,344; 80026120.51110, $52,344; 80026220.51110, $26,172 PROPOSED BUDGET AMOUNT: FINANCING SOURCE: PREVIOUS CONTRACT/PURCHASE ORDER NO.: COORDINATED WITH: Sage Sangiacomo, City Manager; Sheri Mannion, Human Resources/Risk Management Director Page 523 of 858 Page 1 of 2 RESOLUTION No. 2022-xx A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF UKIAH FOR EXCEPTION TO THE 180-DAY WAIT PERIOD AND AUTHORIZING THE CITY’S RETIRED ELECTRIC UTILITY DIRECTOR TO WORK ON A TEMPORARY BASIS AS AN EXTRA HELP IN ACCORDANCE WITH GOVERNMENT CODE SECTIONS 7522.56 & 21224 WHEREAS, section 7522.56 requires that post-retirement employment commence no earlier than 180 days after the retirement date, which is December 31st 2021; and WHEREAS, Government Code section 7522.56(f) provides that a retired person shall not be eligible to be employed pursuant to this section for a period of 180 days following the date of retirement unless he meets one of four conditions, which in this case would include (1) The employer certifies the nature of the employment and that the appointment is necessary to fill a critically needed position before 180 days have passed and the appointment has been approved by the governing body of the employer in a public meeting. The appointment may not be placed on a consent calendar; and WHEREAS, in compliance with Government Code section 7522.56 the City must provide CalPERS this certification resolution when hiring a retiree before 180 days has passed since the incumbents retirement date; and WHEREAS, the current incumbent, Mel Grandi, has retired on December 31st, 2021; and WHEREAS, the Ukiah City Council hereby appoints Mel Grandi as an extra help retired annuitant to perform some of the duties of Electric Utility Director for the City of Ukiah under Government Code Section 21224, effective January 24, 2022; and WHEREAS, section 7522.56 provides that this exception of the 180 day wait period shall not apply if the retiree accepts any retirement-related incentive; and WHEREAS, the City of Ukiah and Mel Grandi certify that Mel Grandi has not and will not receive a Golden Handshake or any other retirement-related incentive; and WHEREAS, no matters, issues, terms, or conditions related to this employment and appointment have been or will be placed on a consent calendar; and WHEREAS, the employment shall be limited to 960 hours per fiscal year; and WHEREAS, the compensation paid to retirees cannot be less than the minimum nor exceed the maximum monthly base salary paid to other employees performing comparable duties, divided by 173.333 to equal the hourly rate; and WHEREAS, the maximum monthly base salary for this position is $16,498.22 and the hourly equivalent is $95.18 and the minimum monthly base salary for this position is $13,573.12 and the hourly equivalent is $78.31; and WHEREAS, the hourly rate paid to Mel Grandi will be $95.18; and WHEREAS, Mel Grandi, will not receive any benefit incentive, compensation in lieu of benefit or other form of compensation in addition to his hourly pay rate; and Attachment 1 Page 524 of 858 Page 2 of 2 WHEREAS, sufficient funding is included in the FY 2021-2022 budget and contained within the Enterprise, Electric Utility budgeted salary accounts. NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of Ukiah does hereby: Certify the nature of the appointment of Mel Grandi as described herein and that this appointment is necessary to fill the critically needed position of Electric Utility Director for the City of Ukiah by January 24th 2022, because of the critical nature of gas and electric energy analysis and procurement, his expertise and skills are needed to assist with the transition of the new Electric Utility Director. PASSED AND ADOPTED by the City Council of the City of Ukiah at a regular meeting duly held on January 19, 2022, by the following vote: AYES: NOES: ABSENT: ABSTAIN: _____________________________ Jim Brown, Mayor ATTEST: _______________________ Kristine Lawler, City Clerk Page 525 of 858 Page 1 of 2 Agenda Item No: 13.b. MEETING DATE/TIME: 1/19/2022 ITEM NO: 2022-1222 AGENDA SUMMARY REPORT SUBJECT: Authorize Staff to Research and Possibly Apply for CalTrans' Clean California Grant; Authorize City Manager to Execute Grant Documents. DEPARTMENT: City Manager / Admin PREPARED BY: Shannon Riley, Deputy City Manager PRESENTER: Shannon Riley, Deputy City Manager ATTACHMENTS: 1. Guidelines - Clean CA Grant 2. FAQ - Clean CA Grant Summary: City Staff is exploring the Clean California grant opportunity from CalTrans for activities including graffiti abatement, public art, wayfinding signage and more. With the application deadline of February 1st, Staff is seeking Council's support to continue exploration and, if appropriate, authorize the City Manager to execute grant documents. Background: Caltrans is investing in removing litter, creating jobs, educating the public, and engaging the community to transform unsightly roadsides into spaces of pride for all Californians through $296 million in Clean California grants. (https://cleancalifornia.dot.ca.gov/local-grants) A number of the eligible activities - including graffiti abatement, public art, wayfinding and gateway signage, implementation of the strategic plan for the Ukiah segment of the Great Redwood Trail, and a staff person to manage these projects and volunteer programs - are of interest to city staff, who have been researching the grant to determine if this is a good fit for Ukiah. Discussion: There is still due diligence to be performed prior to the application deadline of February 1st, particularly because many of the desired projects require coordination with other community partners. Further, depending on how the projects match with the grant guidelines (Attachment 1), there may be a required match that varies from 0-50%. Those matching funds may come from other entities that have monies dedicated to those projects, from matching Staff and/or volunteer time, and/or may come--in part--from the City. For more information regarding the grant, please see Attachment 2 (Frequently Asked Questions). At this time, Staff is seeking Council's direction regarding the possible application for this grant, community input, and--if deemed appropriate and to not have a significant fiscal impact for the City--authorization for the City Manager to execute grant documents. Recommended Action: Authorize Staff to research and possibly apply for the CalTrans Clean California; authorize the City Manager to execute grant documents. BUDGET AMENDMENT REQUIRED: n/a CURRENT BUDGET AMOUNT: n/a PROPOSED BUDGET AMOUNT: n/a FINANCING SOURCE: Not yet identified PREVIOUS CONTRACT/PURCHASE ORDER NO.: n/a COORDINATED WITH: Jim Robbins, Grant Manager and Neil Davis, Community Services Director Page 526 of 858 Page 2 of 2 Page 527 of 858 Clean California Local Grant Program Program Guidelines Contents Clean California Local Grant Program Overview ..................................................... 3 Background ............................................................................................................... 3 Budget ........................................................................................................................ 3 Goals........................................................................................................................... 3 Schedule .................................................................................................................... 4 Eligibility .......................................................................................................................... 4 Eligible Applicants ..................................................................................................... 4 Eligible Project Types .................................................................................................4 Example Projects.................................................................................................... 5 Eligible Project Area .................................................................................................. 5 Eligible Activities and Expenses ................................................................................ 6 Ineligible Activities and Expenses ............................................................................ 7 Selection Criteria ........................................................................................................... 7 Underserved Communities .......................................................................................8 Other Selection Considerations ............................................................................. 10 Local Match Requirement .........................................................................................10 Calculating SOD of the Community Surrounding the Project and Local Match Requirement ............................................................................................................ 11 Local Match Sources .............................................................................................. 14 Payment Process ......................................................................................................... 14 Advance Payment Process .................................................................................... 15 Conditions............................................................................................................. 16 Additional Conditions .......................................................................................... 16 Advance Payment Requests .............................................................................. 18 Project Application Process .......................................................................................18 Conflict of Interest ................................................................................................... 19 Scoring Criteria ........................................................................................................ 19 1 Attachment 1 Page 528 of 858 1. Narrative ......................................................................................................20 2. Project’s Population Benefit (PB) to Overall Community ........................ 22 3. Project’s Relative PB to Underserved Communities ................................23 4. Demonstrated Community Need .............................................................23 5. Project’s Outcomes Assessment ............................................................... 24 6. Scope, Cost, and Schedule ...................................................................... 24 Appendix A.0. Example Calculations to Determine Required Local Match for a Appendix A.2. Definition of the Project’s Relative Population Benefit (PB) Appendix A.3. Forms for Calculating Population Benefit (PB) (Overall) and Appendix A.4. Example PB (Overall) and Relative PB (Underserved Communities) Other Attachments .............................................................................................. 24 Project Award Process................................................................................................ 24 Grant Agreement Processing .................................................................................... 25 Grant Project Administrative Requirements .............................................................25 Sub-contracts .......................................................................................................... 25 Financial Requirements .......................................................................................... 25 Accounting Requirements ..................................................................................25 Audits and Investigations .................................................................................... 26 Reporting .................................................................................................................. 26 Project Photos ..........................................................................................................26 Project Amendments .............................................................................................. 27 Program Evaluation .................................................................................................... 27 Fictitious Project........................................................................................................... 28 Appendix A.1. Definition of the Project’s Population Benefit (Overall) ................. 32 (Underserved Communities)......................................................................................33 Relative PB (Underserved Community) .................................................................... 34 Calculations Performed for a Fictitious Project ........................................................42 Appendix B1. Demonstrated Community Need Assessment Form ....................... 49 Appendix B2. Project’s Outcomes Assessment Form .............................................. 55 Appendix B3. Example of Forms B1 and B2 Completed for a Fictitious Project ... 61 2 Page 529 of 858 Clean California Local Grant Program Overview Background The Clean California Local Grant Program (CCLGP) is a competitive statewide program created to beautify and clean up local streets and roads, tribal lands, parks, pathways, transit centers, and other public spaces. Assembly Bill 149 (Sec.16) created the CCLGP of 2021 and was codified under Streets and Highway Code §91.41 et al. The Program is one part of the nearly $1.1 billion Clean California initiative that takes direct aim at the continuous trash generation that has overwhelmed California Department of Transportation (Caltrans) and its partners. Other parts of the Clean California initiative include litter abatement efforts, state beautification and safety projects, and public education campaigns. Significant investments in time and resources are needed to collect, recycle, and dispose of litter and hazardous waste. These guidelines describe the policies, criteria, and procedures for the development, adoption, and management of the CCLGP. The guidelines were developed in consultation with representatives from Caltrans and through public workshops that included participation from local government agencies, transit agencies, and tribal governments, among other stakeholders. Budget The program is funded by $296 million dollars in fiscal year 2021/22 General Fund money. All projects must be completed and all funds must be expended by June 30, 2024. Each grant award shall not exceed five million dollars ($5,000,000). There is no minimum award. Goals Pursuant to statute, the intent of the CCLGP is to achieve the following goals: (1) Reduce the amount of waste and debris within public rights -of -way, pathways, parks, transit centers, and other public spaces. (2) Enhance, rehabilitate, restore, or install measures to beautify and improve public spaces and mitigate the urban heat island effect. (3) Enhance public health, cultural connections, and community placemaking by improving public spaces for walking and recreation. (4) Advance equity for underserved communities. 3 Page 530 of 858 Schedule The following schedule lists the major milestones for the CCLGP. Visit https://cleancalifornia.dot.ca.gov/local-grants for the most up-to-date information, including the forthcoming final dates for application workshops #4 and #5. Also note that no action is needed from applicants at the Call for Projects Announcement. On this day, final program documents will be released for applicants to view. Grant Program Timeline Milestone Date Public Workshop #1 September 1, 2021 Public Workshop #2 October 7, 2021 Application Workshop #3 November 18, 2021 Call for Projects Announcement December 1, 2021 Application Workshop #4 Mid-December 2021 Application Workshop #5 Mid-January 2022 Project Application Deadline February 1, 2022 Project Award Notification March 1, 2022 Date by when projects must be completed and all funds expended. If the project involves infrastructure components, all components must be opened to the public and all funds expended by this date. June 30, 2024 Date by when final invoicing and project closeout must be complete. December 31, 2024 Eligibility Eligible Applicants The applicant must be a local or regional public agency, transit agency, or federally recognized tribal government. Nonprofit organizations may partner with eligible applicants, as sub-applicants. Eligible Project Types Eligible projects meet the goals of the CCLGP and may include, but not be limited to: • Infrastructure related community litter abatement and beautification projects. • Non-infrastructure related community litter abatement events and/or educational programs. 4 Page 531 of 858 Example Projects • Beautification and placemaking of existing public spaces, including but not limited to: o Community park space/public space. o Transit centers. o Park-and-ride facilities. o Viaducts, underpasses, or overpasses. • Educational campaigns or community events about litter abatement, proper waste disposal or how to get involved with doing sanctioned artwork in a community. • A combination of project types, including beautification and educational projects. Eligible Project Area The location of the projects within the CCLGP are determined by the applicant. It is recommended that projects are accessible by a multimodal transportation network. Eligible project locations may include projects located on local streets and roads, tribal lands, parks, pathways, transit centers, and other public spaces. Projects that encroach on Caltrans right-of-way are allowed; however, the applicant must demonstrate that all necessary right-of-way clearances, encroachment permits, and other permits can be obtained, and the project completed, by June 30, 2024. For more information on Caltrans Encroachment Permits, including contact information for local District Encroachment Permit Offices, see https://dot.ca.gov/programs/traffic-operations/ep. Art projects on Caltrans right-of-way also need to complete and abide by the Caltrans’ Transportation Art Process. This includes: • Separate approval by the Caltrans Transportation Art program. • Artwork ownership, including copyrights, assigned to Caltrans, with rights licensed back to the artist. • Waiver of moral rights (California Civil Code § 987). • Adhering to Transportation Art content restrictions. • Maintenance plan/funding (i.e. graffiti abatement). See Caltrans’ Transportation Art Guidelines for Local Agencies and the Transportation Art Proposal for details. Gateway Monuments and Community Identification projects on Caltrans right-of-way entail separate processes and requirements. 5 Page 532 of 858 Eligible Activities and Expenses Eligible activities must meet CCLGP goals. Examples of eligible features within the project area include: • Enhanced paving to address the needs of the space, using permeable pavements where possible. • Pavement alternatives, such as wood chips. • Inert material, such as rubberized pavement. • Shade structures. • Shade trees or drought-tolerant plantings. • Irrigation systems. • Bioretention, swales, and other green street elements. • Architectural fencing. • Art installations, including community identification or cultural elements. An art installation should: o Be appropriate and safe to its proposed setting. o Be in proper scale with its surroundings. o Be composed of materials that are durable for the projected lifespan. o Include graphics or sculptural artwork that express unique attributes of an area’s history, resources, or character. o Not display symbols or icons, including but not limited to, logos or political and commercial symbols. Sponsor recognition should be unobtrusive, discreet, and not appear to be an integral part of the artwork. o Not display text. o Be designed to minimize ongoing maintenance needs. • Gateway Monuments and Community Identification projects. If these are on Caltrans right-of-way, they have different requirements than art installations. • Human-scale, energy-conserving lighting. • Walking and/or biking facilities through the space. • Wayfinding signage. • Amenities related to proper waste collection or prevention (e.g., signage, bins, etc.). 6 Page 533 of 858 • Seating and play equipment. • Public bathrooms and water fountains. • Travel Expenses: Grant recipients may be eligible to claim travel expenses if they have been approved in the scope, cost, and schedule included in the grant agreement. Travel expenses and per diem rates are not to exceed the rate specified by the State of California Department of Personnel Administration for similar employees (i.e. non-represented employees). For more information on eligible travel expenses, visit the Caltrans Travel Guide Website. Ineligible Activities and Expenses Some activities or project components are not eligible for reimbursement under this grant program. If an application has any of the following elements and is seeking reimbursement for any of them, it will be disqualified. Ineligible activities and expenses include: • Displacing people experiencing homelessness. • Acquisition of rights-of-way or land. • Work performed prior to or after the execution of the grant agreement. • Acquisition of vehicles or shuttle programs. • Other items unrelated to the project or CCLGP goals. • Maintenance of a project improvement for this grant agreement is not a reimbursable expense (however it can be an in-kind contribution if it occurs prior to June 30, 2024). • Other activities that extend beyond June 30, 2024. Selection Criteria Selection criteria focuses on demonstrated benefits and needs including, but not limited to: • Demonstrated need of the applicant and ability to achieve the program’s goals. • Demonstrated enhancement and beautification of a public space(s), including improved access to the space. • Enhanced greening to provide shade, reduce the urban heat island effect, and use native, drought-tolerant plants. • Abatement of litter and debris to improve access and use of public space(s). • Public engagement that reflects community priorities and is consistent with local or regional plans such as General Plans, Improvement Plans, 7 Page 534 of 858 bicycle and/or pedestrian plans, and complete street plans. The project should also align with the public outreach that occurred during the preparation of these plans. • Identification of the population benefit, including to underserved communities. Projects that demonstrate a benefit to an underserved community, either directly or indirectly, will be more competitive. For these projects, applicants must explain which underserved community is benefited, how the project benefits that community, and the percentage of the work and budget that benefits that community. • Project deliverability, in which projects are open to public and/or all funds are expended by June 30, 2024. Underserved Communities No less than 50 percent of the CCLGP funds are to fund projects that benefit underserved communities. An eligible project should clearly demonstrate a benefit to an underserved community or be directly located in an underserved community. The definition for these communities may include disadvantaged and low- income communities, as defined in Sections 39711 and 39713 of the California Health and Safety Code, or another metric with verifiable information that identifies underserved communities. To qualify, the community served by the project must meet at least one of the following criteria: • Option 1. Area Median Income: Is less than 80% of the statewide median based on the most current Census Tract level data from the 2019 American Community Survey 5-Year Estimates (<$60,188). Communities with a population less than 15,000 may use data at the Census Block Group level. Unincorporated communities may use data at the Census Place level. Data is available at the United States Census Bureau Website. • Option 2. CalEnviroScreen: An area identified as among the most disadvantaged 25% in the state according to the CalEPA and based on the California Communities Environmental Health Screening Tool 3.0 (CalEnviroScreen 3.01) scores (score must be greater than or equal to 39.34). The mapping tool can be found here and the list can be found under “Background: SB 535 Identification of Disadvantaged Communities (2017).” 1 During the development of these guidelines, the final CalEnviroScreen 4.0 was released. Since the SB 535 List of Disadvantaged Communities based on CalEnviroScreen 4.0 is in draft at time of writing, applicants should use CalEnviroScreen 3.0 rather than 4.0. 8 Page 535 of 858 • Option 3. National School Lunch Program: Based on pre-pandemic data 2, at least 75% of public-school students in the project area are eligible to receive free or reduced-price meals under the National School Lunch Program. Data is available at the California Department of Education website. • Option 4. Healthy Places Index: The Healthy Places Index includes a composite score for each census tract in the State. The higher the score, the healthier the community conditions, based on 25 community characteristics. The scores are then converted to a percentile to compare a census tract to other tracts in the State. A census tract must be in the 25th percentile or less to qualify as a disadvantaged community. The live map and direct data can both be found on the California Healthy Places Index website. • Option 5. Native American Tribal Lands: The project is located within or partially within: o Federally Recognized Tribal Lands (typically within the boundaries of a Reservation or Rancheria), o Lands owned by or held in trust for an Indian tribe, o Allotted lands, and/or o Sensitive tribal areas (which might include areas in which a Native American Tribe has a significant interest, such as traditional cultural properties and sacred sites). • Other: If the project will benefit an underserved community, but the project does not meet any of the criteria above, other means of qualifying may be submitted with the application for consideration as Attachment J in Section 3.1 of the application, “ATTACHMENTS”. Suggested alternative assessment methods that can be submitted under this category include: o Census data that represents a small neighborhood or unincorporated area. Submit a quantitative assessment, such as a survey, to demonstrate that the community’s median household income is at or below 80% of the state median household income. o CalEnviroScreen data that represents a small neighborhood or unincorporated area. Submit an assessment to demonstrate that the community’s CalEnviroScreen score is at or above 39.34. 2 During the development of these guidelines, the National School Lunch Program started offering free lunches to all students. Thus, if an applicant still wants to use this option, it is recommended that pre-pandemic data be used. 9 Page 536 of 858 o A regional definition such as “environmental justice communities” or “communities of concern,” which must be stratified based on severity. It must also be based on a robust public outreach process that includes community stakeholder input. A regional definition of underserved communities must be used for the region’s broader planning purposes. It must be adopted as part of a regular 4-year cycle adoption of a Regional Transportation Plan (RTP)/Sustainable Communities Strategy (SCS) by a Metropolitan Planning Organization (MPO) or Regional Transportation Planning Agency (RTPA), per obligations with Title VI of the Federal Civil Rights Act of 1964. If you chose to define a community as underserved using a criterion other than one of the 5 options listed above, you must submit your criterion and justification for consideration as Attachment J in the application. Other Selection Considerations The State may consider additional factors in its selection decisions. These include, but are not limited to, the geographic distribution of awards, willingness to accept partial funding, and quality of the maintenance plan (which is not required for educational programs). The State may also consider the responsiveness and responsibility of the applicant, based on data such as previous performance on other grant programs. Local Match Requirement Required local match is the minimum percentage of the project’s funding the applicant commits to provide as a condition of accepting a program grant. The required local match will range from 0% (i.e., no local match required) to 50%. The percentage is determined based on the “severity of disadvantage” (SOD) of the community surrounding the project. The community surrounding the project is defined as all census tracts within a ¼ mile radius of the project site (or sites, if there are multiple locations.) The required local match will decrease as the SOD of the surrounding community increases. The SOD of the surrounding community is defined below and the relationship of the SOD to percent required local match can be found in Table 2, Severity of Disadvantage and Corresponding Local Match Requirement. Tribal Communities that qualify per Option 5 on Table 2 require zero local match. Applicants will be held responsible for any local commitments at or above their minimum local match requirement as part of their grant agreement with Caltrans. 10 Page 537 of 858 Calculating SOD of the Community Surrounding the Project and Local Match Requirement How to calculate the SOD and the local match percentage is described below. The calculation forms must be submitted with the application as part of Attachment I. SOD of surrounding = Weighted average of the SODs of the surrounding census tracts. community = Sum [(Pop. CT 1 x metric score CT 1) + (Pop. CT 2 x metric score CT 2) + (Pop. CT N x metric score CT N…)] Sum(Pop. CT 1 + Pop. CT 2 + Pop. of CT N…) Where: • Pop. CT = Population of a census tract within a ¼ mile radius of the project site or sites. • Metric Score = The underserved community score of a census tract is determined using one of the allowable 5 options listed in Table 2 of the guidelines. When calculating SOD, the metric score of all census tracts must be determined using the same option. The 5 options are detailed above in the section “Underserved Communities”. If the community surrounding the project is considered underserved using multiple options, choose the option that best supports the community’s status as underserved. 11 Page 538 of 858 Table 1. SOD of Community Surrounding the Project Site(s) List the Option Used to Determine SOD: (For definitions of each of the 5 options, see the section “Underserved Communities”.) Location Relative to Project Site(s) (1) Census Tract Number (2) Census Tract Population (3) Metric Score of Census Tract using the chosen option listed above. (4) SOD of Tract (3) x (4) (5) 1 Project Site A 2 Within a ¼ mile radius. 3 Within a ¼ mile radius. 4 Within a ¼ mile radius. 5 Project Site B 6 Within a ¼ mile radius. 7 Within a ¼ mile radius. 8 Within a ¼ mile radius. TOTALS SOD of Community Surrounding the Total of Column 5 = = Project Total of Column 3 An example of a completed Table 1 is in Appendix A.0. Determine Required Local Match Use the SOD of the community surrounding the project calculated above, and Table 2 below, to determine the required local match for your project. 12 Page 539 of 858 Table 2. Severity of Disadvantage and Corresponding Local Match Requirement SOD Criteria Ranges for SOD of Community Surrounding the Project Required Local Match % Option 1: Area Median Income (AMI) compared to Statewide Median Income (SMI)* Data: Census Tract Level Data from the 2019 American Community Survey 5-year (ACS5) Estimates If the AMI SOD of the surrounding community is… > $60,188 Then local match is… 50 $56,426 to $60,188 37.5 $52,665 to $56,425 25 $48,903 to $52,664 12.5 < $48,903 0 Option 2: CalEnviroScreen 3.0 Percentile Score Data: SB 535 List of Disadvantaged Communities or SB 535 Disadvantaged Communities Map If the CalEnviroScreen 3.0 SOD of the surrounding community is… < 39 Then local match is… 50 39 to 42 37.5 43 to 46 25 47 to 50 12.5 > 50 0 Option 3: Percentage of Students that Receive Free or Reduced Lunches** Data: California Department of Education website If the Free Lunch SOD of the surrounding community is… < 75 Then local match is … 50 75 to 79 37.5 80 to 84 25 85 to 89 12.5 > 90 0 Option 4: Healthy Places Index (HPI) Score (use overall HPI score only) Data: California Healthy Places Index website If the HPI SOD of the surrounding community is… > 25 Then local match is… 50 21 to 25 37.5 16 to 20 25 10 to 15 12.5 < 10 0 Option 5: Tribal Communities Data: List of Federally Recognized Tribal Governments in California If the project applicant or sub-applicant is a Federally Recognized Tribal Government or the project area is located within (or partially within) Federally Recognized Tribal Lands (typically within the boundaries of a Reservation or Rancheria), lands owned by or held in trust for an Indian tribe, allotted lands, and/or sensitive tribal areas (which might include areas in which a Native American Tribe has a significant interest such as traditional cultural properties and sacred sites). Then the local match is… 0 *Communities with a population less than 15,000 may use data at the Census Block Group level. Unincorporated communities may use data at the Census Place level. **During the development of these guidelines, the National School Lunch Program started offering free lunches to all students. Thus, if an applicant still wants to use this option, it is recommended that pre-pandemic data be used. 13 Page 540 of 858 Local Match Sources The local match can be all cash, all third-party in-kind contributions, or a combination of the two: • Cash Match o Revenue sources for local cash match can include local sales tax, special bond measures, private donations, or private foundation contributions, among other sources. If federal funding is a source for local cash match, the entire project must comply with all federal requirements, which may affect the project schedule. Check the federal program guidelines for details. o Staff time from the primary applicant can be counted as cash match. However, staff time charged to a specific project that has already been funded and/or reimbursed cannot be used to meet the match requirement for a Clean CA project. • Third-Party In-Kind Match o Third party in-kind contributions are typically goods and services donated from outside the primary applicant’s agency. Examples include the value of donated: Plants/trees. Art resources (e.g., materials, labor, supplies). Equipment and materials. Volunteered time from stakeholders. Other goods and services. o Maintenance activities related to the project if these occur prior to June 30, 2024. o If third party in-kind contributions are used to satisfy the local match requirements, all of them must be itemized in the application. If a project is awarded funds, as part of the grant agreement, the grant recipient will be asked to provide letters of commitment from each third-party contributor detailing what services are included with the match and a commitment to reaching the project completion date of June 30, 2024. Payment Process For an item to be eligible for payment, the primary use or function of that item must meet the program goals and be consistent with the approved grant scope and budget as well as applicable cost principles. Payments will be made by reimbursement unless advance payment is requested and approved. 14 Page 541 of 858 The CCLGP is primarily a reimbursement program for eligible costs incurred. An implementing agency may begin incurring eligible costs upon execution of a grant agreement with Caltrans as well as receipt of notice to proceed from Caltrans. Applicants may request advance payment. Requests must be included in the project application and include a justification to support the request, as detailed in the Advance Payment Process section. Caltrans may provide funding directly to federally recognized Tribal governments, but only if a Tribal government is willing to grant a limited waiver of sovereign immunity for the purposes of their CCLGP project and for the duration of the project. As an alternative to waiving sovereign immunity, Tribal governments may consider applying as a sub-applicant through partnership with a public or transit agency. If requesting reimbursement for indirect costs, grant recipients must have an approved Indirect Cost Allocation Plan/Indirect Cost Rate Proposal (ICAP/ICRP) agreement with Caltrans, or the grant recipient’s cognizant agency, to be reimbursed. A “cognizant” agency is the Federal agency responsible for reviewing, negotiating, and approving cost allocation plans or indirect cost proposals. An approved indirect cost rate must be included in the grant agreement. If the agency does not have a current ICAP/ICRP with Caltrans or its cognizant agency, it must submit an ICAP/ICRP request in accordance with the options and submission processes found on the following webpage: https://ig.dot.ca.gov/resources. Agencies can also e-mail ICAP- ICRP@dot.ca.gov. The ICAP/ICRP documentation must be submitted with the work plan if the agency is claiming indirect costs. For non-infrastructure projects, indirect cost rates are limited to what is approved by Caltrans or the cognizant agency. For infrastructure projects, per the Caltrans Local Assistance Procedures Manual, the total cost for Construction Engineering (CE) should not exceed 15% of the construction costs and all costs over that must be shown in the application as non-participating. Advance Payment Process As described in State statute, Caltrans may authorize advance payments necessary for projects funded by the CCLGP. This is consistent with the Legislature’s direction to expeditiously award and disburse grants. Specifically, the Department, in its sole discretion, may provide advance payments of grant awards in a timely manner to support program initiation and implementation, with a focus on mitigating the constraints of modest reserves and potential cash flow problems. In considering whether to apply for an advance payment, the 15 Page 542 of 858 applicant acknowledges that the Advance Payment guidelines contained herein are solely for the purposes of the CCLGP. Conditions Recognizing that appropriate safeguards are needed to ensure grant moneys are used responsibly, the Legislature has outlined the grant conditions described below to establish control procedures for advance payments. Accordingly, the Department may provide advance payments to grant applicants of the CCLGP only if the Department determines, pursuant to SHC Section 91.41(e), that all the following conditions are met: a. The grant applicant for an advance payment is a public agency. b. The grant applicant requests an advance payment in its initial grant application. c. The project or project component for which the advance payment is requested is well defined and can be delivered by an agreed upon date. d. The grant applicant has a record of good financial management and has not been sanctioned by any state or federal agency. e. Upon request of the department, the grant applicant offers sufficient capital, as determined by the Department, as security for an advance payment. f. Upon request of the department, the grant applicant provides a finding approved by its governing body that demonstrates a financial need for an advance payment pursuant to the program to deliver the project. Additional Conditions In evaluating a grant applicant’s request for advance payment, the Department has established the following additional conditions of award. Advance Payment Amounts A grant applicant may request one advance payment equal to the anticipated project cost for the first four months of the project, as described in the project schedule, budget, and spending plan. The advance payment may not exceed 30% of the grant award or $1,000,000, whichever is smaller. General Conditions a. The advance payment is necessary immediately to meet the purposes of the grant project. b. Only one advance payment, at the beginning of the project, will be awarded. c. The use of the advance funds is adequately regulated by project budgetary controls. 16 Page 543 of 858 d. The grant applicant provides a finding approved by its governing body that demonstrates the financial need for an advance payment. e. The grant applicant has no outstanding financial audit findings related to any of the moneys eligible for advance payment and is in good standing with the Franchise Tax Board and Internal Revenue Service. f. The grant applicant agrees to revert all unused moneys to the Department if they are not expended within the timeline specified in the grant agreement. g. The grant applicant assumes legal and financial risk of the advance payment. h. In the event of nonperformance by the grant recipient, the Department shall require full recovery of all disbursed moneys. A grant recipient shall provide a money transfer confirmation within 60 days upon the receipt of a notice from the Department. Fiscal Administration a. The grant applicant shall indicate its request for advance payment on the initial application. A spending plan shall be submitted with the application. 1. The spending plan shall include project schedules, timelines, milestones, and the grant recipient’s fund balance for all state grant programs applied to the project. 2. The grant recipient will report to the Department any material changes to the spending plan within 30 days of identification of the change. b. The grant applicant shall submit an updated spending plan along with an Advance Payment Invoice to the Department for review prior to receiving the advance payment. c. The grant recipient shall submit requests for reimbursement packages monthly 3, commencing at the conclusion of the first full calendar month of project implementation. Reimbursement packages shall include supporting documentation for all expenditures including, but not limited to, receipts, invoices, and timesheets. d. The advance payment will be closed out at the end of the project, with final reimbursement packages satisfying all advance funds. Any funds not accounted for shall be returned to the Department. e. The grant recipient shall place funds advanced under this section in an interest-bearing account. The grant recipient shall track interest accrued 3Note, projects that do not request Advance Payments may submit invoices no more frequently than monthly and no less frequently than quarterly. See the section Accounting Requirements for details. 17 Page 544 of 858 on the advance payment. Interest earned on the advance payment shall be used for eligible grant-related expenses as outlined in Eligible Activities and Expenses, or returned to the Department. f. The grant recipient shall report to the Department the value of any unused balance of the advance payment and interest earned, and submit quarterly fiscal accounting reports consistent with the provisions in the CCLGP Grant Agreement. g. The grant recipient shall remit to the Department any unused portion of the advance payment and interest earned at project close-out. Advance Payment Requests a. The Department will advance one payment from the total grant award after the grant recipient submits the following to the Department: i. A fully executed Grant Agreement; ii. Advance Payment Invoice (to be provided by the Department); and iii. Updated Spending Plan that includes project schedules, timelines, milestones, and the grant recipient’s fund balance for all fund sources applied to the project. b. The grant recipient must email the completed Advance Payment Invoice and Spending Plan to the Department Grant Coordinator. The invoice shall include the secured digital signature of a person legally authorized to sign. c. Advance grant payments are subject to the Department’s approval of the Advance Payment Invoice and Spending Plan. d. Quarterly reports must substantiate grant costs incurred as discussed in the Reporting section for which the Advance Payment was utilized. Project Application Process 1. Applications, including the supporting documentation, are submitted online: a. Access to the application and other required templates are available on the CCLGP website, https://cleancalifornia.dot.ca.gov/local-grants. b. No hardcopy applications will be accepted. 2. Project Proposals are reviewed and evaluated: a. Caltrans subject matter experts, with district representation, conduct a review of all applications for eligibility, submission of proper documentation, deliverability, and demonstrated benefits that align with the grant program goals. They then score the 18 Page 545 of 858 applications using a standardized scoring methodology, which is described in the Scoring Criteria section. b. Incomplete or ineligible applications may be removed from the competitive process. c. Caltrans headquarters grant program staff then verifies the scores and provides the award recommendations list, to be approved by the State. d. Award recommendations are submitted to the Secretary of the California State Transportation Agency for concurrence. 3. Awarded projects are announced. 4. Grant Agreements between the grant recipients and Caltrans are executed. All information contained in the application and supporting documentation is confidential until grant awards are announced. The State reserves the right to reject an applicant who is in violation of any law or policy at another public agency. Potential violations include, but are not limited to, being in default of performance requirements for other contracts or grant agreements issued by the State, engaging in or being suspected of criminal conduct that could poorly reflect on or bring discredit to the State, or failing to have all required licenses and permits necessary to carry out the project. The State further reserves the right to reject any applicant who has a history of performance issues with past grants or other past contractual agreements with any public entity. Conflict of Interest All applicants and individuals who participate in the review of submitted applications are subject to state and federal conflict of interest laws. Any individual who has participated in planning or setting priorities for a specific solicitation over and above the public comment process, or who will participate in any part of the grant development and negotiation process on behalf of the public, is ineligible to receive funds or personally benefit from funds through that solicitation. Failure to comply with conflict of interest laws, including business and financial disclosure provisions, will result in the application being rejected and any subsequent grant agreement declared void. Other legal actions may also be taken. Applicable statutes include, but are not limited to, California Government Code section 1090 and Public Contract Code sections 10365.5, 10410, and 10411. Scoring Criteria Applications will be scored as explained in Table 3 and in the following sub- sections of this document. The scoring methodology is designed to support 19 Page 546 of 858 performance of the grant objectives and encourages context-sensitive proposals. The scoring is designed to prioritize quality of transformation over quantity of space transformed. For communities that may not have a lot of public space, but can still benefit from a transformative project, their application would be competitive under this scoring methodology. Other selection considerations may factor into the final project selection. Table 3. Scoring Methodology Component Number Scored Component Possible Score (points) Weight (percent of overall score) 1 Narrative (Qualitative) 20 10 2 Project’s Population Benefit (Quantitative) 20 10 3 Project’s Relative Population Benefit to Underserved Communities (Quantitative) 35 17.5 4 Demonstrated Community Need (Quantitative) 50 25 5 Project’s Outcomes Assessment Form (Quantitative) 40 20 6 Scope, Cost, and Schedule (Qualitative) 35 17.5 Sum 200 100 1. Narrative The narrative scoring component will be based on the applicant's description of how well the project meets the program’s statutory goals, requirements, and guidelines. This component is worth up to 20 points and 10 percent of the total application score. The narrative component will be assessed by a committee of subject matter experts using a scoring rubric based on grant criteria. At a minimum, the narrative shall include a discussion of: • The project location and any project description details not included in section 1.8 of the main application form. Describe the public space or spaces to be addressed; specifying right-of-way, park, pathway, transit center, tribal land, or other space. Discuss where the space is located, including its visibility and access to the public. 20 Page 547 of 858 • The demonstrated community need that addresses the goals of the CCLGP program. Specifically, describe the existing conditions of the project location(s), and how the project meets one or more of the four stated program goals listed below. 1. Reduce the amount of waste and debris within public rights-of-way, pathways, parks, transit centers, and other public spaces. 2. Enhance, rehabilitate, restore, or install measures to beautify and improve public spaces and mitigate the urban heat island effect. 3. Enhance public health, cultural connections, and community placemaking by improving public spaces for walking and recreation. 4. Advance equity for underserved communities. Address each goal selected separately in the narrative. For each goal selected, also include the information requested in the respective paragraphs below: Goal 1. Reduce the Amount of Waste and Debris: Describe types of existing waste and debris, work to be performed to remove it, and by whom. Goal 2. Beautify and Improve Public Space: Describe the beautification or access improvements to be performed, including enhanced greening measures. Include any enhancements to be made, rehabilitation or restoration to be performed, and new installations placed. Goal 3. Improving Public Spaces for Walking and Recreation: Describe improvements to be made to the public spaces for walking and recreation, and how these improvements will enhance public health, cultural connection, and/or community placemaking. Goal 4. Advance Equity for Underserved Communities: Projects that demonstrate a benefit to an underserved community, either directly or indirectly, will be more competitive. For these projects, applicants must explain which underserved community is benefited, how it was identified, and how the project benefits that community. Applicants should also explain the percentage of grant funds that will benefit the community and how these percentages were calculated. Calculations can be based on the project’s relative population benefit to underserved communities or another methodology. If another methodology is used, provide a brief justification for using it. • The local public engagement process that culminated in the project identification and how the project reflects community priorities. Specifically, the Narrative should describe the stakeholder/community engagement efforts that went into identifying the proposed elements as a priority for the community. These efforts should include engagement with 21 Page 548 of 858 underserved communities and/or any community-based organizations that serve them. The applicant can reference engagement that was sponsored by Caltrans or others. The Narrative should also describe how the project is consistent with or included in existing local or regional plans such as General Plans, Improvement Plans, bicycle and/or pedestrian plans, and complete street plans, that were the products of extensive public outreach. Finally, the Narrative should discuss how exactly the engagement influenced the project proposal. • Project deliverability, including the applicant’s certainty the project will be completed, opened to public, and all funds expended by June 30, 2024. Identify all permits required for the project and note all that have not been approved at time of application submittal. For any permit not obtained, explain how its approval will be achieved and the project completed by June 30, 2024. For infrastructure projects, describe all pre- construction work required to deliver this project by its completion date. • If you are requesting advance payment, a justification. • How the applicant is going to market the project, through materials such as press releases, press advisories, letters to the editor, fact sheets, social media posts, website pages, or speeches. Also state whether there will be a ground-breaking or ribbon cutting ceremony for any infrastructure improvements that are part of the project. • If applicable, how the improvement(s) will be maintained. Identify the lifespan of the improvement(s), how the improvements will be maintained throughout their lifespans, the resources to fund maintenance activities, and the commitment of those resources. This information is required for physical project improvements and litter abatement events (i.e., there needs to be an explanation of the strategy for preventing litter from accumulating again, after the abatement event). This information is also required for any artwork or vegetation that is part of the proposal. Maintenance information is not required for educational programs. 2. Project’s Population Benefit (PB) to Overall Community For infrastructure projects, the project’s PB to the overall community is the sum of the population of all census tracts within a quarter mile radius of the project added to the average daily ridership of transit routes that have stops within a half mile radius of the project. This sum is then increased by a factor related to the hours the improved site will be open to the public. For non-infrastructure projects, the PB is the sum of the population benefit of each non-infrastructure activity. The population benefit of each activity is calculated based on the estimated number of unique people who attend an 22 Page 549 of 858 activity or will be reached by a campaign, multiplied by the number of activities or campaigns. Points for this scoring component will be awarded on a curve relative to all applications received. This component is worth a maximum of 20 points and up to 10 percent of the total application score. Details on how to calculate the PB and an example can be found in Appendices A1-A4. 3. Project’s Relative PB to Underserved Communities A project’s relative population benefit to underserved communities is determined by a ratio of the project’s PB to underserved communities over the project’s PB to the overall community. For infrastructure projects, the PB to underserved communities is the sum of the population of all underserved census tracts within a quarter mile radius of the project added to the average daily ridership of transit routes that have stops within a ½ mile radius of the project. This sum is then increased by a factor related to the hours the improved site will be open to the public. Note, the transit ridership is the same as it is for calculating the PB for the overall community in scoring component 2 described in the above section. For non-infrastructure projects, the project’s PB to underserved communities is the same as for the overall community. Points for this scoring component will be awarded as a percentage based on the ratio of the underserved project benefit to the overall project benefit. This component is worth up to 35 points and 17.5 percent of the total application score. Details on how to calculate the PB to underserved communities can be found in Appendices A1-A4. See the section Underserved Communities in these guidelines for definitions of underserved communities. 4. Demonstrated Community Need The demonstrated community need scoring component measures the demonstrated need of the applicant or sub-applicant to address the program goals. Needs include those for waste and debris reduction, beautification, enhanced public health, cultural connection, increased equity, or greening. This component is worth up to 50 points and 25 percent of the total application score. The score is based on the applicant’s answers to questions about the existing public space(s) or community conditions. The questions can be found on the “Demonstrated Community Need Assessment Form.” The form has five (5) sections, each relating to a program goal. Within each section, the applicant may choose up to two questions to answer. The form can be viewed in Appendix B1, and an example of a completed form can be viewed in Appendix B3. 23 Page 550 of 858 5. Project’s Outcomes Assessment This scoring component measures the proposal’s potential to accomplish the goals of the program. This component is worth up to 40 points and 20 percent of the total application score. The score is based on the applicant’s answers to questions about anticipated project outcomes. The questions can be found on the “Project’s Outcomes Assessment Form” in Appendix B2. Like the “Demonstrated Community Need Assessment Form”, the form has five (5) sections, each relating to a program goal. Within each section, the applicant may choose up to two questions to answer. A sample completed form based on a fictitious project can be viewed in Appendix B3. 6. Scope, Cost, and Schedule The scope, cost, and schedule submittals will be reviewed by a committee of subject matter experts who will evaluate how well the documents maximize project benefits versus costs. This component is worth up to 35 points and 17.5 percent of the total application score. A standardized scoring methodology will be used to assess this component. The scope, cost, and schedule component must include the following, which are in the templates provided: • The scope must include detailed project plans, and/or an educational programming workplan. • The application must include a schedule showing planned start and end dates of salient infrastructure work activities and/or non-infrastructure tasks. The schedule must show all activities completed and all funds expended by June 30, 2024. If the project contains infrastructure components, these must also be opened to the public by June 30, 2024. • The application must include a cost breakdown of all project components. Do not provide costs as lump sum expenses. Other Attachments Section 3.1 of the application will allow additional documents to be uploaded beyond what is listed above. Details on what these attachments should include are in the Application Instructions provided on the CCLGP website. Project Award Process After evaluation is complete and the list of successful applicants is approved by the State, the list of awarded projects will be posted to the Caltrans website. Successful grant applicants will receive an award letter from Caltrans that outlines important next steps, such as executing the grant agreement, as well as program requirements the grant recipient must adhere to. The CCLGP is limited to one cycle of funding. As a result, unsuccessful grant applicants will not receive a debrief. 24 Page 551 of 858 Grant Agreement Processing A restricted grant agreement will be utilized for the distribution of funds. The agreement will specify, among other things, the amount of funds granted, local match funds required, timeline for expenditure of funds, delivery schedule, and the approved project scope. Reporting timeframes and other requirements will also be identified in the agreement. A copy of the grant agreement will be made available on the CCLGP website. Grant Project Administrative Requirements Sub-contracts If a grant recipient or a sub-recipient will hire a third-party to perform work during the project, proper procurement procedures must be used. Grant recipients may use their agency’s procurement procedures. They should also comply with all applicable sections of the California Public Contract Code and Government Code, and any other applicable code. In addition, work cannot be sub- contracted unless it has been stated in the grant recipient’s scope, cost, and schedule. A grant recipient is fully responsible for all work performed by its sub- recipients, consultants, or sub-consultants. Caltrans solely enters contracts directly with grant recipients. Financial Requirements Accounting Requirements Grant recipients and sub-recipients are required to maintain an accounting system that properly records and segregates incurred project costs and matching funds by line item. The accounting system of the grant recipient, including its sub-recipients and sub-contractors, must conform to Generally Accepted Accounting Principles that enable the determination of incurred costs at interim completion points. This accounting system must also provide support for reimbursement payment vouchers or invoices sent to or paid by Caltrans. Allowable project costs must comply with 2 Code of Federal Regulations (CFR), Part 200. It is the grant recipient’s responsibility to monitor work and expenses to ensure the project is completed according to the contracted Scope, Cost, and Schedule. The grant recipient agrees to revert all unused grant funds to the Department if they are not expended within the timeline specified in the grant agreement. In the event of nonperformance by the grant recipient, or if project outcomes and benefits are not met, the Department shall require full recovery of all disbursed grant funds. A grant recipient shall provide a money transfer confirmation within 60 days upon the receipt of a notice from the Department that grant funds must be reimbursed. If a grant recipient does not expend funds within the timeline specified in the grant agreement or does not perform, this 25 Page 552 of 858 could also impact the grant recipient’s competitiveness in any potential future funding cycles of this program. Grant recipients must submit invoices on a regular and timely basis. This is no more frequently than monthly and no less frequently than quarterly for projects not requesting advance payments. This is monthly for projects requesting advance payments. Costs incurred prior to or after the end date of an executed agreement are not eligible for reimbursement and will not be counted towards local match requirements. CCLGP funds shall not supplant other committed funds and are not available to fund cost increases. Funds must be expended concurrently and proportionally with the approved local match unless an advance payment request is approved. Cost savings will be shared proportionally between all committed fund sources. Grant recipients must communicate with the Caltrans project manager to ensure any issues are addressed early during the project period. Audits and Investigations Clean California Local Grant Program projects are subject to audit. Therefore, all financial records related to the project must be retrained for a minimum of three years from project closeout. Reporting Upon execution of a CCLGP agreement, grant recipients must submit quarterly Project Progress Reports and a Final Delivery Report to Caltrans. The reports will be required to assess whether projects are meeting their scope and are being delivered on time and within budget. They will be submitted electronically and due within 45-days of the end of a quarter. The State may make periodic visits, including a final inspection, to project sites. The State will determine if the work is consistent with the approved project scope. Caltrans staff will be responsible for conducting and coordinating site visits with the awarded projects. The final invoice will be paid upon submission and acceptance of the Final Delivery Report to Caltrans. Complete final delivery reports and invoices must be submitted to Caltrans no later than November 1, 2024. Project Photos A before photo will be required with the application and an after photo will be required as part of the closeout reporting process for grant recipients. Caltrans must be granted the right to use photos of the completed project. 26 Page 553 of 858 Project Amendments The CCLGP will not participate in cost increases to the project. Any cost increases must be funded from other fund sources. If there is a change in the project cost, it must be reported through the quarterly project reporting process. Scope changes will not be considered unless the change is minor, does not reduce project benefits, and does not change the approved project schedule. Scope changes must be requested in writing to the Caltrans project manager and may require an amendment to the restricted grant agreement. Projects must be complete with all funds expended by June 30, 2024. If the project involves infrastructure components, these must be opened to the public by June 30, 2024. Amendments for time are not permitted. Program Evaluation The CCLGP will be evaluated for its effectiveness in meeting its goals. Grant recipients must collect and submit data to Caltrans as described in the Reporting section. As part of the fiscal year 2022–23 and 2023–24 California budgets, Caltrans shall report to the Legislature on the CCLGP, including, but not limited to, cubic yards of litter collected, the locations and types of projects, and any other important program outcomes. The report will include a discussion on program effectiveness in terms of planned and achieved outcomes in litter abatement and beautification efforts, as well as timely use of funds. It will also include a summary of its activities relative to program administration, including projects awarded, projects completed to date by project type, projects completed to date by geographic distribution, and projects completed to date by benefit to underserved communities. 27 Page 554 of 858 Appendix A.0. Example Calculations to Determine Required Local Match for a Fictitious Project For demonstration purposes, this appendix performs an example calculation to determine the required local match for a fictitious project. You will first determine the SOD of the surrounding community, and then use that number to determine the corresponding required local match. The required local match will decrease as the SOD of the surrounding community increases. Fictitious Project Summary: The sample project proposes improving the parkland at the Greenside Park in the City of Eureka, CA (M St & 12th St, Eureka, CA 95501) with beautification upgrades and litter abatement. In addition to physical improvements, the project proposes to launch a litter abatement campaign on social media that will reach 1,000 people/week for 52 weeks in total, and a ribbon cutting event/litter abatement event with 200 people invited. Step 1. Choose a definition by which to define the community surrounding the project as underserved. See the section Underserved Communities of these guidelines for more information. If the community surrounding the project is considered underserved based on multiple options, choose the option that best supports the community’s status as underserved. Per Option 5, Tribal Communities require zero local match, and thus none of these calculations. Step 2. Determine the SOD of the community surrounding the project: SOD of surrounding = Weighted average of the SODs of the surrounding census tracts. community = Sum [(Pop. CT 1 x metric score CT 1) + (Pop. CT 2 x metric score CT 2) + (Pop. CT N x metric score CT N…)] Sum(Pop. CT 1 + Pop. CT 2 + Pop. of CT N…) Where: • Pop. CT = Population of a census tract within a ¼ mile radius of the project site or sites. • Metric Score = The underserved community score of a census tract determined using one of the 5 options listed in Table 2 of the guidelines. Perform this calculation using Table 1, SOD of Community Surrounding the Project Site(s). When calculating SOD, the same definition of underserved community must be used throughout Table 1. 28 Page 555 of 858 Table 1. SOD of Community Surrounding the Project Site(s) List the Option Used to Determine SOD: (For definitions of each of the five options, see the section “Underserved Communities”.) AMI Location Relative to Project Site(s) (1) Census Tract Number (2) Census Tract Population (3) Metric Score of Census Tract using the chosen option listed above. (4) SOD of Tract (3) x (4) (5) 1 Project Site A 5 4450 $32,500 $144,625,000 2 Within a ¼ mile radius. 6 4998 $28,700 $143,442,600 3 Within a ¼ mile radius. 1 4242 $51,600 $218,887,200 4 Within a ¼ mile radius. 5 Project Site B 6 Within a ¼ mile radius. 7 Within a ¼ mile radius. 8 Within a ¼ mile radius. TOTALS 13,690 $506,954,800 SOD of Community Surrounding the Total of Column 5 = Project Total of Column 3 = $37,031 Why we filled in Table 1 as we did: • We chose option 1, Area Medium Income (AMI), to define an underserved community. Then we looked up the project address in the 2019 American Community Survey 5-yr. Estimates (ACS5) and found it is in census tract 5 with a population of 4,450 people and a median income of $32,500. We logged this information on line 1 accordingly. • We then drew a ¼ mile buffer around the project limits and determined all other census tracts that fell totally or partially within buffer limits. Two tracts met this criterion, census tracts 6 and 1. We completed lines 2 and 3 based on the populations and median incomes of those tracts. 29 Page 556 of 858 • The remaining values auto calculated. The tables provided on the CCLPG website in Attachment I are fillable and will calculate for you. (Note, all dollar values and populations shown were made up for demonstration purposes.) Step 3. Use Table 2 below to determine the Required Local Match based off the SOD of Community Surrounding the Project. For this example, the required local match would be 0% (see highlighted values). 30 Page 557 of 858 I I I I 11 Table 2. Severity of Disadvantage and Corresponding Local Match Requirement SOD Criteria Ranges for SOD of Community Surrounding the Project Required Local Match % Option 1: Area Median Income (AMI) compared to Statewide Median Income (SMI)* Data: Census Tract Level Data from the 2019 American Community Survey 5-year (ACS5) Estimates If the AMI SOD of the surrounding community is… > $60,188 Then local match is… 50 $56,426 to $60,188 37.5 $52,665 to $56,425 25 $48,903 to $52,664 12.5 < $48,903 0 Option 2: CalEnviroScreen 3.0 Percentile Score Data: SB 535 List of Disadvantaged Communities or SB 535 Disadvantaged Communities Map If the CalEnviroScreen 3.0 SOD of the surrounding community is… < 39 Then local match is… 50 39 to 42 37.5 43 to 46 25 47 to 50 12.5 > 50 0 Option 3: Percentage of Students that Receive Free or Reduced Lunches** Data: California Department of Education website If the Free Lunch SOD of the surrounding community is… < 75 Then local match is … 50 75 to 79 37.5 80 to 84 25 85 to 89 12.5 > 90 0 Option 4: Healthy Places Index (HPI) Score (use overall HPI score only) Data: California Healthy Places Index website If the HPI SOD of the surrounding community is… > 25 Then local match is… 50 21 to 25 37.5 16 to 20 25 10 to 15 12.5 < 10 0 Option 5: Tribal Communities Data: List of Federally Recognized Tribal Governments in California If the project applicant or sub-applicant is a Federally Recognized Tribal Government or the project area is located within (or partially within) Federally Recognized Tribal Lands (typically within the boundaries of a Reservation or Rancheria), lands owned by or held in trust for an Indian tribe, allotted lands, and/or sensitive tribal areas (which might include areas in which a Native American Tribe has a significant interest such as traditional cultural properties and sacred sites). Then the local match is… 0 *Communities with a population less than 15,000 may use data at the Census Block Group level. Unincorporated communities may use data at the Census Place level. **During the development of these guidelines, the National School Lunch Program started offering free lunches to all students. Thus, if an applicant still wants to use this option, it is recommended that pre-pandemic data be used. 31 Page 558 of 858 Appendix A.1. Definition of the Project’s Population Benefit (Overall) (A) Infrastructure Work PB Overall Project’s Population Benefit (PB) + = Overall (B) Non-infrastructure Work PB Where: A. Infrastructure Work PB = (Direct PB + Indirect PB) x Dose Where: • Direct PB = Sum of the population of all census tracts within a ¼ mile radius of the project site(s). • Indirect PB = Sum of the average daily ridership of transit routes that have stops within a ½ mile radius of the project site(s). • Dose = Hours the site will be accessible to the public under the improved conditions. (If the project has multiple sites and hours differ, use the average number of hours.) B. Non-infrastructure Work PB = Sum of the PB of each non-infrastructure (NI) activity. Where: • The PB of NI Activity = Reach x Dose Where: • Reach = Number of people reached at least once by an educational campaign or eligible event. • Dose = Number of times the campaign will run, or the event will be held. Copies of the forms to perform the calculations are provided in Appendix A3. Example calculations based on a fictitious project are provided in Appendix A4. When submitting the application, complete the form in Attachment I from the CCLGP website and attach it to your application. 32 Page 559 of 858 Appendix A.2. Definition of the Project’s Relative Population Benefit (PB) (Underserved Communities) Project’s Relative PB Projects PB (underserved) x100 = (underserved communities) Projects PB (overall) Project’s PB Underserved (A) Infrastructure Work PB Underserved = Community + (B) Non-infrastructure Work PB Where: A. Infrastructure Work PB = (Direct PB Underserved + Indirect PB) x Dose Underserved Where: • Direct PB Underserved = Sum of the population of all underserved census tracts within a ¼ mile radius of the project site(s). • Indirect PB = same as used in Appendix A.1. • Dose = same as used in Appendix A.1. B. Non-infrastructure PB = Same as used in Appendix A.1. Copies of the forms to perform the calculations are provided in Appendix A3. Example calculations based on a fictitious project are provided in Appendix A4. When submitting the application, complete the form in Attachment I from the CCLGP website and attach it to your application. 33 Page 560 of 858 Appendix A.3. Forms for Calculating Population Benefit (PB) (Overall) and Relative PB (Underserved Community) Step 1. If your project has no infrastructure work, skip to Step 3. Step 2. If your project has infrastructure work, complete Tables 1 through 5 below. Information from tables 1 through 3 will be used to calculate the Infrastructure Work PB for both the overall and underserved community in Tables 4 and 5, respectively. Table 1. Infrastructure Work – Direct PB (Overall and Underserved Community) • On line 1, list the census tract in which the project is located. • On subsequent lines, list all census tracts within a ¼ mile radius of your project. If your project is large or long, use a ¼ mile from the outer edges. If your project has multiple locations, list the census tracts for each location. Add more rows on the last page if necessary. • For each census tract listed, provide the information requested. For columns 4 and 5, consult the CCLGP guidelines on how to define an undeserved community. If you choose “other” as your option, you must submit Attachment J with a justification of your methodology. • Total column 3 and column 5. 34 Page 561 of 858 Table 1. Infrastructure Work-Direct Population Benefit Location Relative to Project Site(s) (1) Census Tract Number (2) Census Tract Population (Overall) (3) If the tract is underserved community, record the option used to make the determination. (ACS5, SB535, CDEdu, HIP, Other) (4) Census Tract Population (Underserved) If the tract is an underserved community, also record population in this column. (5) 1 Project Site A 2 Within a ¼ mile radius. 3 Within a ¼ mile radius. 4 Within a ¼ mile radius. 5 Project Site B 6 Within a ¼ mile radius. 7 Within a ¼ mile radius. 8 Within a ¼ mile radius. Population Totals (Overall) = (Underserved) = Table 2. Infrastructure Work – Indirect PB • List all transits routes with at least one transit stop within a ½ mile radius of your project. If you project is large or long, use a ½ mile from the outer edges. Add more rows on the last page if necessary. • Total all ridership numbers. 35 Page 562 of 858 Table 2. Infrastructure Work -Indirect Benefit Population Name of Transit Route with at least One Stop within a 1/2 Mile of Project Site(s) (1) Average Daily Ridership of the Route (2) 1 2 3 4 5 6 7 Total of the Average Daily Ridership of Qualifying Routes Table 3. Infrastructure Work – Dose Determine the “dose” factor for the infrastructure work, which are the hours the site will be accessible to the public under the improved conditions. • List all sites and the hours for each site. Add more rows on the last page if necessary. • Calculate the average number of hours of all sites. Table 3. Infrastructure Dose Infrastructure Site (1) Hours Improved Site Accessible to Public (2) 1 2 3 4 5 6 7 Average of Hours if Project Contains Multiple Sites 36 Page 563 of 858 Table 4. Infrastructure Work PB (Overall) Use information from Tables 1-3 to complete Table 4. Table 4. Infrastructure Work PB (Overall) (Direct PB (Table 1, Column 3) (1) + Indirect PB) (Table 2, Column 2) (2) × Dose (Table 3, Column 2) (3) = Infrastructure Work PB (Overall) (4) + × = Table 5. Infrastructure Work PB (Underserved Community) Use information from Tables 1-3 to complete Table 5. Table 5. Infrastructure Work PB (Underserved Community) (Direct PB (Table 1, Column 5) (1) + Indirect PB) (Table 2, Column 2) (2) × Dose (Table 3, Column 2) (3) = Infrastructure Work PB (Underserved Community) (4) + × = 37 Page 564 of 858 Step 3: If your application proposes educational campaigns or events about litter abatement, proper waste disposal, or how to do sanctioned artwork (as opposed to vandalism), use Table 6 to calculate PB of each non-infrastructure activity and total. If your application does not propose these activities, skip to Step 4. Table 6. Non-Infrastructure Work PB • Reach = Number of people reached at least once by an educational campaign or eligible event. • Dose = Number of times the campaign will run, or the event will be held. Table 6. Non-Infrastructure Work (NI) PB NI Activity Number NI Activity Name Activity Reach (1) x Activity Dose (2) = PB of NI Activity (3) 1 x = 2 x = 3 x = 4 x = Total NI Work PB Step 4. Calculate the Project’s Population Benefit (Overall). This score will be graded by the Department on a curve relative to all applications submitted. The number of points the applicant will be awarded for Scoring Component 2, Project Population Benefit, will be granted accordingly. The maximum number of points is 20. Table 7. Project’s PB (Overall) Table 7. Project's PB (Overall) Infrastructure Work PB (Overall) (From Table 4, Column 4) (1) + Non-Infrastructure Work PB (From Table 6, Column 3) (2) = Project's PB (Overall) (3) + = 38 Page 565 of 858 Step 5. Calculate the Project’s Population Benefit (Underserved Community). Table 8. Project’s PB (Underserved Community) Table 8. Project's PB (Underserved Community) Infrastructure Work PB (Underserved Community) (From Table 5, Column 4) (1) + Non-Infrastructure Work PB (From Table 6, Column 3) (2) = Project's PB (Underserved Community) (3) + = Step 6. Calculate the Project’s Relative Population Benefit to the underserved community. Table 9. Project's Relative PB to Underserved Communities Project's PB (Underserved Community) (From Table 8, column 3) (1) ÷ Project's PB (Overall) (From Table 7, column 3) (2) = Project's Relative PB (Underserved Community) (3) ÷ = Step 7. Calculate the number of points you, the applicant, will be awarded for Scoring Component 3, Project’s Relative Population Benefit to the Underserved Community. The maximum number of points is 35. Table 10. Applicant’s Points for Scoring Component 3, Project’s Relative PB (Underserved Community) Table 10. Scoring Component 3, Project’s Relative PB (Underserved Community) Project's Relative PB (Underserved Community) (From Table 9, column 3) (1) × Maximum Possible Points (2) = Score (Pts.) (3) × 35 = Examples of completed calculation forms based on a fictitious project can be found in Appendix A.4. 39 Page 566 of 858 Additional rows for Tables 1 and 2. (Only use these pages if needed.) Table 1. Infrastructure Work-Direct Population Benefit (CONTINUED) Location Relative to Project Site(s) (1) Census Tract Number (2) Census Tract Population (Overall) (3) If the tract is underserved community, record the option used to make the determination. (ACS5, SB535, CDEdu, HIP, Other) (4) Census Tract Population (Underserved) If the tract is an underserved community, also record population in this column. (5) 9 Project Site C 10 Within a ¼ mile radius. 11 Within a ¼ mile radius. 12 Within a ¼ mile radius. 13 Project Site D 14 Within a ¼ mile radius. 15 Within a ¼ mile radius. 16 Within a ¼ mile radius. Table 2. Infrastructure Work -Indirect Benefit Population (CONTINUED) Name of Transit Route with at least One Stop within 1/2 Mile of Project Site(s) (1) Average Daily Ridership of the Route (2) 8 9 10 11 12 13 14 15 40 Page 567 of 858 Additional rows for Tables 3 and 6. (Only use these pages if needed.) Table 3. Infrastructure Dose (CONTINUED) Infrastructure Site (1) Hours Improved Site Accessible to Public (2) 8 9 10 11 12 13 14 15 Table 6. Non-Infrastructure Work (NI) PB (CONTINUED) NI Activity Number NI Activity Name Activity Reach (1) x Activity Dose (2) = PB of NI Activity (3) 5 x = 6 x = 7 x = 8 x = 9 x = 10 x = 11 x = 12 x = 13 x = 14 x = 15 x = 16 x = 41 Page 568 of 858 Appendix A.4. Example PB (Overall) and Relative PB (Underserved Communities) Calculations Performed for a Fictitious Project For demonstration purposes, this appendix performs sample population benefit calculations based on a fictitious project. Fictitious Project Summary: The sample project proposes improving the parkland at the Greenside Park in the City of Eureka, CA (M St & 12th St, Eureka, CA 95501) with beautification upgrades and litter abatement. In addition to physical improvements, the project proposes to launch a litter abatement campaign on social media that will reach 1,000 people/week for 52 weeks in total and will host a ribbon cutting and litter abatement event with 200 people invited. I have filled this form out as the applicant for the purposes of showing how this would be accomplished and the results you might see from this. Example Population Benefit Calculations: Step 1. If your project has no infrastructure work, skip to Step 3. Our project has infrastructure, so we continue to Step 2. Step 2. If your project has infrastructure work, complete Tables 1 through 5 below. Information from tables 1 through 3 will be used to calculate the Infrastructure Work PB for both the overall and underserved community in Tables 4 and 5, respectively. Table 1. Infrastructure Work – Direct PB (Overall and Underserved Community) • On line 1, list the census tract in which the project is located. • On subsequent lines, list all census tracts within ¼ mile radius of your project. If your project is large or long, use a ¼ mile from the outer edges. If your project has multiple locations, list the census tracts for each location. Add more rows on the last page if necessary. • For each census tract listed, provide the information requested. For columns 4 and 5, consult the CCLGP guidelines on how to define an undeserved community. If you choose “other” as your option, you must submit Attachment J with justification of your determination method. • Total column 3 and column 5. 42 Page 569 of 858 Table 1. Infrastructure Work-Direct Population Benefit Location Relative to Project Site(s) (1) Census Tract Number (2) Census Tract Population (Overall) (3) If the tract is underserved community, record the option used to make the determination. (e.g. ACS5, SB535, CDEdu, HIP, Other) (4) Census Tract Population (Underserved) If the tract is an underserved community, also record population in this column. (5) 1 Project Site A 5 4,450 ACS5 4,450 2 Within a ¼ mile radius. 6 4,998 ACS5 4,998 3 Within a ¼ mile radius. 1 4,242 ACS5 4,242 4 Within a ¼ mile radius. 5 Project Site B 6 Within a ¼ mile radius. 7 Within a ¼ mile radius. 8 Within a ¼ mile radius. Population Totals (Overall) = 13,960 (Underserved) = 13,690 Why we filled in Table 1 as we did: • We chose to use option 1 of the 5 options provided in the guidelines to determine if the community around the project is underserved. We looked up the project address in the 2019 American Community Survey 5- Year Estimates (ACS5) and found it is in census tract 5 with a population of 4,450 people and has a median income less than 80% of the State Median Income. This means the census tract qualifies as an underserved community. We logged this information on line 1 accordingly. • We drew a ¼ mile buffer around the project limits and then determined all other census tracts that fell totally or partially within the project site or buffer limits. Using the ACS5, two tracts met this criteria, census tracts 6 43 Page 570 of 858 and 1, and both also qualified as underserved. We completed lines 2 and 3 accordingly. • Note, you are not limited to one option when making the “underserved” determination. If a tract did not qualify as underserved on the ACS5, we could have also checked another option, such as the Healthy Places Index. If it qualified under one of the options, we could have designated that tract as underserved. Table 2. Infrastructure Work – Indirect PB • List all transits routes with at least one transit stop within a ½ mile radius of your project. If you project is large or long, use a ½ mile from the outer edges. Add more rows on the last page if necessary. • Total all ridership. Table 2. Infrastructure Work -Indirect Benefit Population Name of Transit Route with at least One Stop within 1/2 Mile of Project Site(s) (1) Average Daily Ridership of the Route (2) 1 Redwood Transit System Route 500 2 Southern Humboldt Intercity Route 500 3 4 5 6 7 Total of the Average Daily Ridership of Qualifying Routes 1,000 Why we filled out Table 2 as we did: We drew a ½ mile buffer around the project limits and determined what transit stops existed within the project limits or the buffer zone. We found two bus routes that stopped within a ½ mile of the project and logged the route information accordingly. Table 3. Infrastructure Work – Dose Determine the “dose” factor for the infrastructure work, which is the hours the site will be accessible to the public under the improved conditions. • List all sites and the hours for each site. Add more rows on the last page if necessary. 44 Page 571 of 858 • Calculate the average number of hours of all sites. Table 3. Infrastructure Dose Infrastructure Site (1) Hours Improved Site Accessible to Public (2) 1 Greenside Park 24 2 3 4 5 6 7 Average of Hours if Project Contains Multiple Sites 24 Why we filled in Table 3 as we did: • The park will be accessible to the public 24 hours per day upon completion of the project. If we had multiple sites with different hours, we would have averaged the hours. Table 4. Infrastructure Work PB (Overall) Use information from Tables 1-3 to complete Table 4. Table 4. Infrastructure Work PB (Overall) (Direct PB (Table 1, Column 3) (1) + Indirect PB) (Table 2, Column 2) (2) × Dose (Table 3, Column 2) (3) = Infrastructure Work PB (Overall) (4) 13,960 + 1,000 × 24 = 359,040 45 Page 572 of 858 Table 5. Infrastructure Work PB (Underserved Community) Use information from Tables 1-3 to complete Table 5. Table 5. Infrastructure Work PB (Underserved Community) (Direct PB (Table 1, Column 5) (1) + Indirect PB) (Table 2, Column 2) (2) × Dose (Table 3, Column 2) (3) = Infrastructure Work PB (Underserved Community) (4) 13,960 + 1,000 × 24 = 359,040 Note, because all the tracts within a ¼ mile of the project qualified as underserved, the project’s Infrastructure Work PB (Overall) in Table 7 equals the project’s Infrastructure work PB (underserved community) in Table 8. Step 3: If your application proposes educational campaigns or events about litter abatement, proper waste disposal, or how to do sanctioned artwork (as opposed to vandalism), use Table 6 to calculate PB of each non-infrastructure activity and total. If your application does not propose these activities, skip to Step 4. Table 6. Non-Infrastructure Work PB • Reach = Number of people reached at least once by an educational campaign or eligible event. • Dose = Number of times the campaign will run or the event will be held. Table 6. Non-Infrastructure Work (NI) PB NI Activity Number NI Activity Name Activity Reach (1) x Activity Dose (2) = PB of NI Activity (3) 1 Social Media Litter Abatement Campaign 1000 x 52 = 52,000 2 Ribbon Cutting and Litter Abatement Event 200 x 1 = 200 3 x = 4 x = Total NI Work PB 52,200 46 Page 573 of 858 Why we filled in Table 6 as we did: • The project includes 2 non-infrastructure events, a media campaign that will reach 1,000 social media followers (the Activity 1 reach) once a week for 52 weeks (the Activity 1 dose) and a ribbon cutting and trash disposal education event to which 200 people (the Activity 2 reach) will be invited. The ribbon cutting event is a one-time affair (the Activity 2 dose.) Step 4. Calculate the Project’s Population Benefit (Overall). This score will be graded by the Department on a curve relative to all applications submitted. The number of points the applicant will be awarded for Scoring Component 2, Project Population Benefit, will be granted accordingly. The maximum number of points is 20. Table 7. Project’s PB (Overall) Table 7. Project's PB (Overall) Infrastructure Work PB (Overall) (From Table 4, Column 4) (1) + Non-Infrastructure Work PB (From Table 6, Column 3) (2) = Project's PB (Overall) (3) 359,040 + 52,200 = 411,240 The number calculated here will be graded on a curve relative to other applications submitted to determine the percentage of the maximum possible 20 points to award. Step 5. Calculate the Project’s Population Benefit (Underserved Community). Table 8. Project’s PB (Underserved Community) Table 8. Project's PB (Underserved Community) Infrastructure Work PB (Underserved Community) (From Table 5, Column 4) (1) + Non-Infrastructure Work PB (From Table 6, Column 3) (2) = Project's PB (Underserved Community) (3) 359,040 + 52,200 = 411,240 47 Page 574 of 858 Step 6. Calculate the Project’s Relative Population Benefit to the underserved community. Table 9. Project's Relative PB to Underserved Communities Project's PB (Underserved Community) (From Table 8, column 3) (1) ÷ Project's PB (Overall) (From Table 7, column 3) (2) = Project's Relative PB (Underserved Community) (3) 411,240 ÷ 411,240 = 100% Step 7. Calculate the number of points you, the applicant, will be awarded for Scoring Component 3, Project’s Relative Population Benefit to the Underserved Community. The maximum number of points is 35. Table 10. Applicant’s Points for Scoring Component 3. Project’s Relative PB (Underserved Community) Table 10. Scoring Component 3 Project’s Relative PB (Underserved Community) Project's Relative PB (Underserved Community) (From Table 9, column 3) (1) × Maximum Possible Points (2) = Score (Points) (3) 100% × 35 = 35 48 Page 575 of 858 Appendix B1. Demonstrated Community Need Assessment Form This table measures the demonstrated need of the community to execute the goals of the program. Needs can be the community’s need for waste and debris reduction, beautification, enhanced public health, cultural connection, or another need. This component is worth a maximum of 50 points and up to 25 percent of the total application score. The score is based on the applicant’s answers to questions about the existing site or community conditions. The form has five (5) sections, each relating to a program goal or objective. Within each section, choose a maximum of two (2) questions to answer, for a total of 10 questions. All applicants much answer question 1-1, as one of their two questions in Section 1. 49 Page 576 of 858         Table 1: Demonstrated Community Need Assessment Form Section 1: Answer question 1-1, and one other question of your choice. Program Goal or Objective ID #  Max. Poss. Pts. Community Need Assessment Question Points Guidance Applicant Response Applicant's Self Score To reduce the amount of waste and debris within public rights-of-way, pathways, parks, transit centers, and other public spaces.  1 -1 5  Describe the evidence there is a recurring litter or land misuse in the project area under existing conditions. Summarize trash collection data or other empirical data. (Range 0-5pts., No evidence= 0pts.) Use box below 1-2 5 Under existing conditions, does the No = 5 pts., Somewhat = 3pts., Yes = 0 pts. project site have adequate signage and amenities for proper waste disposal or prevention? 1-3 5 Under existing conditions, does the site have physical features to discourage inappropriate waste disposal or dumping? No = 5 pts., Somewhat = 3pts., Yes = 0 pts. 1-4 3 Under existing conditions, does the Yes = 3pts., Somewhat=2pts., No or NA = 0pts. proposed community or project site lack educational programs or events about litter abatement or proper waste disposal? 50 Page 577 of 858       Section 2: Answer 2 questions below. Program Goal or Objective ID #  Max. Poss. Pts. Community Need Assessment Question Point Guidance Applicant Response Applicant's Self Score To enhance, rehabilitate, restore, or install measures to beautify and improve public spaces. 2-1 5 Under existing conditions what percentage of the project site needs beautification? 0-20%= 1 pt., 21-40%= 2 pts., 41-60%= 3 pts., 61-80%= 4 pts., >80%= 5 pts., 2-2 5 Under existing conditions, what percentage of the project site is not functional and/or accessible for community use? 0-20%= 1 pt., 21-40%= 2 pts., 41-60%= 3 pts., 61-80%= 4 pts., >80%= 5 pts., 2-3 5 Based on the hours the project site is open, approximately what percentage of time is it significantly underutilized? 0-20%= 1 pt., 21-40%= 2 pts., 41-60%= 3 pts., 61-80%= 4 pts., >80%= 5 pts., 2-4 5 What percentage of the project site is negatively affected by graffiti or other vandalism? 0-20%= 1 pt., 21-40%= 2 pts., 41-60%= 3 pts., 61-80%= 4 pts., >80%= 5 pts., 51 Page 578 of 858           Section 3: Answer 2 questions below. Program Goal or Objective ID #  Max. Poss. Pts. Community Need Assessment Question Point Guidance Applicant Response Applicant's Self Score To enhance public health, cultural connection, and community placemaking by improving public spaces for walking and recreation. 3-1 5 Does the project area Yes = 5 pts., Somewhat= 3pts., No = 0 pts.. currently prevent a critical connection to daily life destinations such as school, medical care, jobs, or groceries via walking, biking, or transit? 3-2 5 Is the public space a barrier or hazard on a walking or biking route? Yes = 5 pts., Somewhat= 3pts., No = 0 pts.. 3-3 5 Is the existing public recreation space unusable for its intended purposes? Yes = 5 pts., Somewhat= 3pts., No = 0 pts.. 3-4 5 Under existing conditions, are there adequate/sufficient recreation places in the community? No= 5 pts., Somewhat=3pts., Yes = 0 pts. 3-5 3 Under existing conditions, are there enough places to sit at the project site? No= 3 pts., Somewhat=2pts., Yes = 0 pts. 3-6 5 Does the existing project site lack features or elements that connect it to the culture or history of the surrounding community? Yes= 5 pts., Somewhat=3pts., No = 0 pts. 52 Page 579 of 858             Section 4: Answer 2 questions below. Program Goal or Objective ID #  Max. Poss. Pts. Community Need Assessment Question Point Guidance Applicant Response Applicant's Self Score To advance equity for underserved communities. 4-1 5 How does the percentage of usable public space in the underserved community compare to the region's average? Below Average = 5pts., Average =3pts., Above Average = 0pts. 4-2 5 Is the project area an underutilized connection in an underserved community? Yes = 5pts., Somewhat=3pts., No or NA = 0pts. 4-3 5 Is the project site an underutilized public space in an underserved community? Yes = 5pts., Somewhat=3pts., No or NA = 0pts. 4-4 5 Does the space function for people with disabilities or special needs? No = 5pts., Somewhat=3pts., Yes or NA = 0pts. 53 Page 580 of 858       Section 5: Answer 2 questions below. Program Goal or Objective ID #  Max. Poss. Pts. Community Need Assessment Question Point Guidance Applicant Response Applicant's Self Score Greening to provide shade, reduce urban island effect, and use native, low-water plants. 5-1 5 Under existing conditions what percentage of the space is landscaped and/or soft- scaped? 0-20%=5pts., 21-40=4pts., 41-60=3pts., 61-80=2pts., 81-100=1pts. 5-2 5 Under existing conditions, what percentage of landscape lacks native or low-water plants? 0-20%= 5pts., 21-40=4pts., 41-60=3pts., 61-80=2pts., 81-100=1pts. 5-3 5 What percentage of the space is unusable due to lack of shade at midday?  0-20%=1pts., 21-40=2pts., 41-60=3pts., 61-80=4pts., 81-100=5pts. 5-4 5 What percentage of the project site is unusable due to excessive heat at midday? 0-20%=1pts., 21-40=2pts., 41-60=3pts., 61-80=4pts., 81-100=5pts.  Total Score from Sections 1 to 5: Community Need Assessment (Max Possible Points is 50) 0 54 Page 581 of 858 Appendix B2. Project’s Outcomes Assessment Form This form measures the proposal’s potential to accomplish the goals of the program. This component is worth a maximum of 40 points and up to 20 percent of the total application score. The score is based on the applicant’s answers to questions about anticipated project results. The form has five (5) sections, each relating to a program goal or objective. Within each section, choose a maximum of two questions to answer, for a total of 10 questions. 55 Page 582 of 858           Table 2: Project’s Outcomes Assessment Form Section 1: Answer 2 questions below. Program Goal or Objective ID #  Max. Poss. Pts. Project’s Outcomes Questions Point Guidance Applicant Response Applicant's Self Score To reduce the amount of waste and debris within public rights-of-way, pathways, parks, transit centers, and other public spaces. 1-1 4 By what percentage will the waste and debris within the project site be reduced? 0-25% =1 pt., 26-50%= 2pts., 51-75%= 3pts., 76-100%= 4pts. 1-2 3 By what percentage will the signage and amenities for proper waste disposal or prevention increase at the project site? 0-33% = 1 pt., 34-66% = 2pts., 67-100% = 3pts. 1-3 4 What is the estimated reduction of waste or debris at the project site because of new physical features to discourage inappropriate waste disposal or dumping? 0-25% =1 pt., 26-50%= 2pts., 51-75%= 3pts., 76-100%= 4pts. 1-4 3 What is the percent increase in the number of educational programs or events about litter abatement and proper waste disposal? 0-33% = 1 pt., 34-66% = 2pts., 67-100% = 3pts. 1-5 3 What is the percent increase in the number of litter pickup and waste disposal events? 0-33% = 1 pt., 34-66% = 2pts., 67-100% = 3pts. 56 Page 583 of 858                 Section 2: Answer 2 questions below. Program Goal or Objective ID #  Max. Poss. Pts. Project’s Outcomes Questions Point Guidance Applicant Response Applicant's Self Score To enhance, rehabilitate, restore, or install measures to beautify and improve public spaces. 2-1 4 By what percentage will the project site be beautified or improved? 0-25% = 1 pt., 26-50% = 2pts., 51-75% = 3pts., 76-100% = 4pts. 2-2 4 By what percentage do the improvements increase the number and/or diversity of viable uses in the project site? 0-25% = 1 pt., 26-50% = 2pts., 51-75% = 3pts., 76-100% = 4pts. 2-3 5 By what percentage do the improvements increase access to the project site? 0-20% = 1 pt., 21-40% = 2 pts., 41-60% = 3 pts., 61-80% = 4 pts., 81-100% = 5pts. 2-4 4 By what percentage will the quantity of human scale, energy conserving lighting be increased? 0-25% = 1 pt., 26-50% = 2pts., 51-75% = 3pts., 76-100% = 4pts. 2-5 4 What percentage of project site will be improved with anti-graffiti/anti- vandalism solutions? 0-25% = 1 pt., 26-50% = 2pts., 51-75% = 3pts., 76-100% = 4pts. 2-6 4 Will visual art pieces be added to the project site? 2 or more = 4pts., 1 = 3 pts. 2-7 4 What is the percentage increase in educational programs informing the community how to do sanctioned public artwork (as opposed to vandalism/graffiti)? 0-25% = 1 pt., 26-50% = 2pts., 51-75% = 3pts., 76-100% = 4pts. 57 Page 584 of 858       Section 3: Answer 2 questions below. Program Goal or Objective ID #  Max. Poss. Pts. Project’s Outcomes Questions Point Guidance Applicant Response Applicant's Self Score To enhance public health, cultural connection, and community placemaking by improving public spaces for walking and recreation. 3-1 4 Will the project create or enable a critical connection to daily life destinations such as school, medical care, jobs, or groceries via walking, biking, or transit? Yes = 4pts., Somewhat = 2pts., No or NA = 0pts. 3-2 4 Will the project improve a walking or biking route? Yes = 4pts., Somewhat = 2pts., No or NA = 0pts. 3-3 4 Will the project improve or rehabilitate an existing public recreation space? Yes = 4pts., Somewhat = 2pts., No or NA = 0pts. 3-4 4 Will the project add new recreation space to the community? Yes = 4pts., Somewhat = 2pts., No or NA = 0pts. 3-5 4 By what percentage will the project site(s) be improved for walking or recreation? 0-25% = 1 pt., 26-50% = 2pts., 51-75% = 3pts., 76-100% = 4pts. 3-6 4 Will the improved project site incorporate features or elements that connect it to the culture or history of the surrounding community? Definitely = 4 pts., Sufficiently = 3 pts., Somewhat = 2 pts., A little = 1 pt. Not at all = 0 pts. 58 Page 585 of 858   Section 4: Answer 2 questions below. Program Goal or Objective ID #  Max. Poss. Pts. Project’s Outcomes Questions Point Guidance Applicant Response Applicant's Self Score Advance equity for underserved communities. 4-1 4 What percentage of census tracts within a 1/4 mile of the project site qualify as underserved? > 51%=4pts, 40-50%=3pts, 20-39%=2pts < 20% = 1pts 4-2 4 What percentage of transit routes within a 1/2 mile of the project site reach an underserved community? > 51%=4pts, 40-50%=3pts, 20-39%=2pts < 20% = 1pts 4-3 4 Will the project create or improve access to a key connection across a major physical barrier in an underserved community? Yes = 4pts., Somewhat = 2pts., No or NA = 0pts. Will the improved project site Yes = 4pts., 4-4 4 function for people with Somewhat = pts., disabilities or special needs? No or NA = 0pts. 59 Page 586 of 858           Section 5: Answer 2 questions below. Program Goal or Objective ID #  Max. Poss. Pts. Project’s Outcomes Question Point Guidance Applicant Response Applicant's Self Score Greening to provide shade, reduce urban island effect, and use native, low-water plants. 5-1 4 What is the anticipated decrease in impervious surfaces at the project site? 0-25% = 1 pt., 26-50% = 2pts., 51-75% = 3pts., 76-100% = 4pts. 5-2 4 What will be the percent increase in native, drought tolerant plantings? 0-25% = 1 pt., 26-50% = 2pts., 51-75% = 3pts., 76-100% = 4pts. 5-3 4 What is the anticipated percent increase of shade measured at the noon hour? 0-25% = 1 pt., 26-50% = 2pts., 51-75% = 3pts., 76-100% = 4pts. 5-4 4 What is the anticipated increase of greening or tree canopy? 0-25% = 1 pt., 26-50% = 2pts., 51-75% = 3pts., 76-100% = 4pts. Total of Scores from Sections 1 to 5: 0Project Outcomes (Max Possible is 40) 60 Page 587 of 858 Appendix B3. Example of Forms B1 and B2 Completed for a Fictitious Project For demonstration purposes, this appendix contains completed Demonstrated Community Need Assessment and Project’s Outcomes Assessment forms based on a fictitious project. Fictitious Project Summary: One-acre public space that will include landscaping, shade trees, improved street furniture, new bins for proper waste disposal, enhanced lighting, a mural by a local artist, and upgrades to the bus stop shelter at the site. Youth volunteers will be recruited to help clean the space before improvements are made, and they will learn about litter abatement and the free dump days in the community. 61 Page 588 of 858     Table 1: Completed Demonstrated Community Need Assessment Form Section 1: Answer question 1-1, and one of your choice. Program Goal or Objective ID #  Max. Poss. Pts. Community Need Assessment Question Points Guidance Applicant Response Applicant's Self Score To reduce the amount of waste and debris within public rights-of- way, pathways, parks, transit centers, and other public spaces.  1 -1 5  Describe the evidence there is a (Range 0-5pts., No evidence= 0pts.) Use box below recurring issue of trash production or land misuse in the project area under existing conditions. Summarize trash collection data or other empirical data. Trash bins are always overflowing. The amount of trash has increased by approximately 300% 5 according to the maintenance department. Many people dump their garbage around the park. Park walls have re-occurring graffiti. There have been citizen complaints and about garbage and broken benches. The park has seen reduced usage over the years due to safety concerns and poor lighting. Reservations for youth sports at the facility and picnic areas have reduced by 25%. 1-2 5 Under existing conditions, does the No = 5 pts., Somewhat = 3pts., Yes = 0 pts. project site have adequate signage and amenities for proper waste disposal or prevention? 1-3 5 Under existing conditions, does the site have physical features to discourage inappropriate waste disposal or dumping? No = 5 pts., Somewhat = 3pts., Yes = 0 pts. No 5 1-4 3 Under existing conditions, does the Yes = 3pts., Somewhat=2pts., No or NA = 0pts. proposed community or project site lack educational programs or events about litter abatement or proper waste disposal? 62 Page 589 of 858           Section 2: Answer 2 questions below. Program Goal or Objective ID #  Max. Poss. Pts. Community Need Assessment Question Point Guidance Applicant Response Applicant's Self Score To enhance, rehabilitate, restore, or install measures to beautify and improve public spaces. 2-1 5 Under existing conditions what percentage of the project site needs beautification? 0-20%= 1 pt., 21-40%= 2 pts., 41-60%= 3 pts., 61-80%= 4 pts., >80%= 5 pts., 81 5 2-2 5 Under existing conditions, what percentage of the project site is not functional and/or accessible for community use? 0-20%= 1 pt., 21-40%= 2 pts., 41-60%= 3 pts., 61-80%= 4 pts., >80%= 5 pts., 2-3 5 Based on the hours the project site is open, approximately what percentage of time is it significantly underutilized? 0-20%= 1 pt., 21-40%= 2 pts., 41-60%= 3 pts., 61-80%= 4 pts., >80%= 5 pts., 61 4 2-4 5 What percentage of the project site is negatively affected by graffiti or other vandalism? 0-20%= 1 pt., 21-40%= 2 pts., 41-60%= 3 pts., 61-80%= 4 pts., >80%= 5 pts., 63 Page 590 of 858           Section 3: Answer 2 questions below. Program Goal or Objective ID #  Max. Poss. Pts. Community Need Assessment Question Point Guidance Applicant Response Applicant's Self Score To enhance public health, cultural connection, and community placemaking by improving public spaces for walking and recreation. 3-1 5 Does the project area Yes = 5 pts., Somewhat= 3pts., No = 0 pts.. currently prevent a critical connection to daily life destinations such as school, medical care, jobs, or groceries via walking, biking, or transit? 3-2 5 Is the public space a barrier or hazard on a walking or biking route? Yes = 5 pts., Somewhat= 3pts., No = 0 pts.. 3-3 5 Is the existing public recreation space unusable for its intended purposes? Yes = 5 pts., Somewhat= 3pts., No = 0 pts.. 3-4 5 Under existing conditions, are there adequate/sufficient recreation places in the community? No= 5 pts., Somewhat=3pts., Yes = 0 pts. Somewhat 3 3-5 3 Under existing conditions, are there enough places to sit at the project site? No= 3 pts., Somewhat=2pts., Yes = 0 pts. 3-6 5 Does the existing project site lack features or elements that connect it to the culture or history of the surrounding community? Yes= 5 pts., Somewhat=3pts., No = 0 pts. Yes 5 64 Page 591 of 858               Section 4: Answer 2 questions below. Program Goal or Objective ID #  Max. Poss. Pts. Community Need Assessment Question Point Guidance Applicant Response Applicant's Self Score To advance equity for underserved communities. 4-1 5 How does the percentage of usable public space in the underserved community compare to the region's average? Below Average = 5pts., Average =3pts., Above Average = 0pts. Below Average 5 4-2 5 Is the project area an underutilized connection in an underserved community? Yes = 5pts., Somewhat=3pts., No or NA = 0pts. 4-3 5 Is the project site an underutilized public space in an underserved community? Yes = 5pts., Somewhat=3pts., No or NA = 0pts. Yes 5 4-4 5 Does the space function for people with disabilities or special needs? No = 5pts., Somewhat=3pts., Yes or NA = 0pts. 65 Page 592 of 858       Section 5: Answer 2 questions below. Program Goal or Objective ID #  Max. Poss. Pts. Community Need Assessment Question Point Guidance Applicant Response Applicant's Self Score Greening to provide shade, reduce urban island effect, and use native, low-water plants. 5-1 5 Under existing conditions what percentage of the space is landscaped and/or soft- scaped? 0-20%=5pts., 21-40=4pts., 41-60=3pts., 61-80=2pts., 81-100=1pts. 5-2 5 Under existing conditions, what percentage of landscape lacks native or low-water plants? 0-20%= 5pts., 21-40=4pts., 41-60=3pts., 61-80=2pts., 81-100=1pts. 35 4 5-3 5 What percentage of the space is unusable due to lack of shade at midday? 0-20%=1pts., 21-40=2pts., 41-60=3pts., 61-80=4pts., 81-100=5pts. 75% 4 5-4 5 What percentage of the project site is unusable due to excessive heat at midday? 0-20%=1pts., 21-40=2pts., 41-60=3pts., 61-80=4pts., 81-100=5pts.  Total Score from Sections 1 to 5: Community Need Assessment (Max Possible Points is 50) 45 66 Page 593 of 858           Table 2: Completed Project’s Outcomes Assessment Form Section 1: Answer 2 questions below. Program Goal or Objective ID #  Max. Poss. Pts. Project’s Outcomes Questions Point Guidance Applicant Response Applicant's Self Score To reduce the amount of waste and debris within public rights-of-way, pathways, parks, transit centers, and other public spaces. 1-1 4 By what percentage will the waste and debris within the project site be reduced. 0-25% =1 pt., 26-50%= 2pts., 51-75%= 3pts., 76-100%= 4pts. 100 4 1-2 3 By what percentage will the signage and amenities for proper waste disposal or prevention increase at the project site? 0-33% = 1 pt., 34-66% = 2pts., 67-100% = 3pts. 1-3 4 What is the estimated reduction of waste or debris at the project site because of new physical features to discourage inappropriate waste disposal or dumping? 0-25% =1 pt., 26-50%= 2pts., 51-75%= 3pts., 76-100%= 4pts. 80 4 1-4 3 What is the percent increase in the number of educational programs or events about litter abatement and proper waste disposal? 0-33% = 1 pt., 34-66% = 2pts., 67-100% = 3pts. 1-5 3 What is the percent increase in the number of litter pickup and waste disposal events? 0-33% = 1 pt., 34-66% = 2pts., 67-100% = 3pts. 67 Page 594 of 858                 Section 2: Answer 2 questions below. Program Goal or Objective ID #  Max. Poss. Pts. Project’s Outcomes Questions Point Guidance Applicant Response Applicant's Self Score To enhance, rehabilitate, restore, or install measures to beautify and improve public spaces. 2-1 4 By what percentage will the project site be beautified or improved? 0-25% = 1 pt., 26-50% = 2pts., 51-75% = 3pts., 76-100% = 4pts. 80 4 2-2 4 By what percentage do the improvements increase the number and/or diversity of viable uses within the project site? 0-25% = 1 pt., 26-50% = 2pts., 51-75% = 3pts., 76-100% = 4pts. 2-3 5 By what percentage do the improvements increase access to the project site? 0-20% = 1 pt., 21-40% = 2 pts., 41-60% = 3 pts., 61-80% = 4 pts., 81-100% = 5pts. 2-4 4 By what percentage will the quantity of human scale, energy conserving lighting will be increased? 0-25% = 1 pt., 26-50% = 2pts., 51-75% = 3pts., 76-100% = 4pts. 60 4 2-5 4 What percentage of project site will be improved with anti-graffiti/anti vandalism solutions? 0-25% = 1 pt., 26-50% = 2pts., 51-75% = 3pts., 76-100% = 4pts. 2-6 4 Will visual art pieces be added to the project site? 2 or more = 4pts., 1 = 3 pts. 2-7 4 What is the percentage increase in educational programs informing the community how to do sanctioned public artwork (as opposed to vandalism/graffiti)? 0-25% = 1 pt., 26-50% = 2pts., 51-75% = 3pts., 76-100% = 4pts. 68 Page 595 of 858       Section 3: Answer 2 questions below. Program Goal or Objective ID #  Max. Poss. Pts. Project’s Outcomes Questions Point Guidance Applicant Response Applicant's Self Score To enhance public health, cultural connection, and community placemaking by improving public spaces for walking and recreation. 3-1 4 Will the project create or enable a critical connection to daily life destinations such as school, medical care, jobs, or groceries via walking, biking, or transit? Yes = 4pts., Somewhat = 2pts., No or NA = 0pts. 3-2 4 Will the project improve a walking or biking route? Yes = 4pts., Somewhat = 2pts., No or NA = 0pts. 3-3 4 Will the project improve or rehabilitate an existing public recreation space? Yes = 4pts., Somewhat = 2pts., No or NA = 0pts. Yes 4 3-4 4 Will the project add new recreation space to the community? Yes = 4pts., Somewhat = 2pts., No or NA = 0pts. 3-5 4 By what percentage will the project site(s) be improved for walking or recreation? 0-25% = 1 pt., 26-50% = 2pts., 51-75% = 3pts., 76-100% = 4pts. 3-6 4 Will the improved project site incorporate features or elements that connect it to the culture or history of the surrounding community? Definitely = 4 pts., Sufficiently = 3 pts., Somewhat = 2 pts., A little = 1 pt. Not at all = 0 pts. Definitely 4 69 Page 596 of 858   Section 4: Answer 2 questions below. Program Goal or Objective ID #  Max. Poss. Pts. Project’s Outcomes Questions Point Guidance Applicant Response Applicant's Self Score Advance equity for underserved communities. 4-1 4 What percentage of census tracts within a 1/4 mile of the project site qualify as underserved? > 51%=4pts, 40-50%=3pts, 20-39%=2pts < 20% = 1pts 100% 4 4-2 4 What percentage of transit routes within a 1/2 mile of the project site reach an underserved community? > 51%=4pts, 40-50%=3pts, 20-39%=2pts < 20% = 1pts 50 3 4-3 4 Will the project create or improve access to a key connection across a major physical barrier in an underserved community? Yes = 4pts., Somewhat = 2pts., No or NA = 0pts. Will the improved project site Yes = 4pts., 4-4 4 function for people with Somewhat = pts., disabilities or special needs? No or NA = 0pts. 70 Page 597 of 858           Section 5: Answer 2 questions below. Program Goal or Objective ID #  Max. Poss. Pts. Project’s Outcomes Question Point Guidance Applicant Response Applicant's Self Score Greening to provide shade, reduce urban island effect, and use native, low-water plants. 5-1 4 What is the anticipated decrease in impervious surfaces at the project site? 0-25% = 1 pt., 26-50% = 2pts., 51-75% = 3pts., 76-100% = 4pts. 5-2 4 What will be the percent increase in native, drought tolerant plantings? 0-25% = 1 pt., 26-50% = 2pts., 51-75% = 3pts., 76-100% = 4pts. 65 3 5-3 4 What is the anticipated percent increase of shade measured at the noon hour? 0-25% = 1 pt., 26-50% = 2pts., 51-75% = 3pts., 76-100% = 4pts. 5-4 4 What is the anticipated increase of greening or tree canopy? 0-25% = 1 pt., 26-50% = 2pts., 51-75% = 3pts., 76-100% = 4pts. 60 3 Total of Scores from Sections 1 to 5: Project Outcomes (Max Possible is 40) 37 71 Page 598 of 858 CCLGP Frequently Asked Questions Application Process Q1: Who is an eligible applicant? A. The applicant must be a local or regional public agency, transit agency, or federally recognized tribal government. Nonprofit organizations may partner with eligible applicants, as sub-applicants. Q2: Are school districts, special districts, or Joint Powers Authorities (JPA) eligible applicants? A. Public agency status is determined based on the agency's enacting documents. Additionally, it must be established that the JPA or district has jurisdiction over the public space being improved. Q3: How would you define a "project"? A. A project can include multiple elements such as infrastructure and non- infrastructure elements, as well as multiple locations. For example, one project may include installation of lighting, litter abatement, and painting of a mural. All infrastructure and non-infrastructure project elements must be included in their respective cost proposals. Q4: Can I submit multiple projects in one application? A. One application can contain more than one project element and can include both infrastructure and non-infrastructure elements, but all elements must be under one project. Applications that include multiple elements may be more competitive. Q5: Can an agency submit multiple applications? A. Yes. There is no limit to the number of applications an applicant can submit. Also, multiple departments within one agency can submit separate applications. 1 Attachment 2 Page 599 of 858 Q6: Do I need to submit a City Council resolution for my project with my application? A. A City Council Resolution (or similar approval document) is not required to be submitted with an application. A resolution will be required at the time a grant agreement is executed. Q7: Can a project that has already received funding from another program apply for additional funding with this grant? A. CCLGP funds cannot be used to supplant existing funds. If the project is adding scope and funding, that portion of the project may be eligible for CCLGP funds. Q8: If an application includes both infrastructure and non-infrastructure components, would cost proposals need to be submitted for each? A. Yes. Q9: Is there a limit to the number of sub-applicants that can be included? A. No. Q10: How detailed do the engineering and/or project plans submitted with the Scope need to be? A. Applications that more strongly support a project can be completed by the project delivery date of June 30, 2024 will be more competitive. The level of detail needs to be sufficient to support the scope, schedule, and budget in the grant application. Award Process and Administrative Requirements Q11: Is it possible for the same agency to be awarded multiple grants if they submit multiple applications? A. Yes. 2 Page 600 of 858 Q12: Are indirect costs eligible for reimbursement? A. Awardees may only claim an indirect cost rate that is approved by the California Department of Transportation Independent Office of Audits and Investigations, or the applicant’s cognizant agency. Also, if claiming indirect costs, an approved indirect cost rate will need to be included in the grant agreement. To obtain or update an indirect cost rate with Caltrans, please visit this link for instructions: https://ig.dot.ca.gov/resources. Q13: Will CCLGP projects fall under our Master Agreement? A. The Master Agreement/Program Supplement process will not be used for this program. Awardees will need to execute a Restricted Grant Agreement (RGA) with Caltrans. See a sample of the RGA here: https://cleancalifornia.dot.ca.gov/local-grants/workshops-milestones. Public Engagement Q14: Does public engagement need to be completed before the proposal is submitted on 2/1/22? A. The application needs to show the need for the project was identified through a public engagement process. That process needs to be explained in the project narrative portion of the application, which is submitted as Attachment A of the application. More information can be found in the section, “1. Narrative,” (third bullet) of the Guidelines. Q15: What is the expectation for public engagement for this program considering COVID-19? A. In-person engagement events are not expected. Online engagement activities such as online workshops and surveys that follow locally approved community engagement polices are sufficient forms of community engagement. More information can be found in the section, “1. Narrative,” (third bullet) of the Guidelines. Q16: How do I find volunteers for my project? A. California Volunteers is an excellent resource for finding volunteers. Please visit the following link for more information: https://www.californiavolunteers.ca.gov/. 3 Page 601 of 858 Competitive Projects Q17: How can I make my application competitive? A. Please see the "Selection Criteria" section of the grant guidelines. Q18: Will preference be made to projects that are shovel-ready? A. Projects that can clearly be completed by the project delivery date of June 30, 2024 will be more competitive. Q19: Are projects with multiple elements, such as infrastructure and non- infrastructure elements, more competitive? A. Projects that have more than one element may be more competitive if they meet the grant objectives. Q20: Are projects with a higher local match requirement more competitive? A. The amount of the required local match is not an evaluation criterion. Q21: Would it be better to submit more applications with smaller projects, or one application with one large project? A. The scoring is designed to prioritize quality of transformation over quantity of space transformed. However, applications that include multiple types of project elements may be more competitive. Q22: Is a project more competitive if it’s adjacent to or on Caltrans property? A. The CCLGP program is intended to beautify and improve public spaces in local communities that meet the program goals and objectives. Caltrans has separate funding for projects on the State's right-of-way. 4 Page 602 of 858 Underserved Communities Q23: Is required local match determined by the disadvantage of the agency or the project location? A. The local match is determined by the disadvantage of the project location. The required local match will decrease as the disadvantage of the community surrounding the project increases. This is an important change to the draft guidelines. See the section, “Local Match Requirement,” in the final guidelines for details. Q24: Now that CalEnviroScreen 4.0 Final is available, should I use that instead of 3.0? A. No. Since the map of SB 535 Disadvantaged Communities based on CalEnviroScreen 4.0 is still in draft form at time of writing, please use CalEnviroScreen 3.0. Eligible Expenditures and Activities Q25: Are renewable and clean energy technologies considered an eligible activity? A. These may be eligible items if they meet the goals and objectives of the program. Q26: Would the public engagement portion of the project that occurred prior to the application submittal be considered an eligible expenditure? A. Work performed prior to the execution of the grant agreement is ineligible for reimbursement. Q27: Is maintenance an eligible activity? A. Maintenance of a project improvement is not a reimbursable expense; however it can be an in-kind contribution if it occurs prior to June 30, 2024. 5 Page 603 of 858 Q28: Is the construction of a new landscaped median island on a local road eligible? A. This may be an eligible item if the application demonstrates that this element meets the goals and objectives of the program and can be implemented by June 30, 2024. Q29: Is vegetation or invasive species management an eligible activity? A. This may be an eligible item if it meets the goals and objectives of the program. Q30: Are new transportation connections such as bike lanes, pedestrian paths, or sidewalks eligible? A. This may be an eligible item if it meets the goals and objectives of the program and can be completed by June 30, 2024. Q31: Is pavement rehabilitation an eligible activity? A. Replacing impermeable pavement with permeable pavement or pavement alternatives such as wood chips are eligible activities if performance of the work accomplishes the goals of the program. Q32: Can funds only be used towards construction or implementation, or can they also be used for project-related expenses such as administration, design, and environmental review? A. Generally, project-related costs that meet the program guidelines, goals, and objectives, and that can be completed by June 30, 2024 are eligible expenses. Q33: If our agency is not underserved or disadvantaged, can we still apply? A. Yes, projects that benefit underserved communities, either directly or indirectly, are competitive, regardless of the agency. Q34: Does the project have to relate to transportation? A. Eligible projects must meet program goals and objectives to beautify and clean up local streets and roads, tribal lands, parks, pathways, transit centers, and other public spaces. 6 Page 604 of 858 Q35: Is graffiti abatement considered an eligible activity? A. This may be an eligible activity if it meets the goals and objectives of the program, and the activities can be completed by June 30, 2024. Funding Q36: Does this program involve federal money? A. The CCLGP is 100% state funded. Q37: Do projects require California Transportation Commission (CTC) allocation of funds? A. Funds for the CCLPG are not allocated through the CTC. Q38: Will there be future rounds for this grant? A. Currently the legislature authorized a one-time budget for the CCLGP. Q39: Is the $5 million maximum per grant application or per Agency? A. The $5 million maximum is per grant application. Q40: Can funding be used to support smaller components of a larger project that exceeds $5 million? A. CCLGP funds cannot supplant other funds. However, if the proposed smaller components meet the goals and objectives of the program and are not already funded by another program, they may be eligible. Partnering with Caltrans Q41: Where can I get information about the Caltrans encroachment permit process? A. Please visit the following website for information on the Caltrans encroachment permit process: https://dot.ca.gov/programs/traffic- operations/ep. 7 Page 605 of 858 Partnering with Other Agencies Q42: If one agency will implement the project and another agency will maintain it, how should this be conveyed through the application? A. This must be explained in the Narrative portion of the application in the discussion on the maintenance plan. Also, the application must include a formal letter of commitment from the agency performing the in-kind services. Permits Q43: Do we need to obtain all permits/approvals for the project prior to submitting the application on 2/1/22? A. It is recommended that you obtain all permits/approvals for the project prior to submitting the application to ensure the June 30, 2024 project delivery deadline can be met. Q44: Will CEQA Environmental Review be required? A. CEQA requirements are not waived for this program. Timeline and Deadlines Q45: Can we spend local match funds after the June 30, 2024 deadline? A. All funds must be expended by June 30, 2024. Q46: Can the June 30, 2024 project delivery deadline be extended? A. There is no authority to extend the project delivery deadline. Miscellaneous Q47: Will signs notifying the public that this is a CleanCA project be required? A. There are no sign requirements for this program. Q47: Will Right-of-Way (RW) Certification be required? A. All infrastructure projects will need RW Certification. 8 Page 606 of 858 Page 1 of 2 Agenda Item No: 13.c. MEETING DATE/TIME: 1/19/2022 ITEM NO: 2022-1209 AGENDA SUMMARY REPORT SUBJECT: Presentation of City's Audited Annual Comprehensive Financial Report (ACFR) and Audit Reports for the Year Ended June 30, 2021. DEPARTMENT: Finance PREPARED BY: Ginny Feth-Michel, Dan Buffalo, Finance Director, Olga Keough, Controller, Mary Horger, Financial Services Manager PRESENTER: Dan Buffalo, Finance Director ATTACHMENTS: 1. City of Ukiah ACFR, June 30, 2021 2. CAFR Presentation, 2021 Summary: Finance Management will present to the City Council the audited Annual Comprehensive Financial Report (ACFR) for the year ended June 30, 2021. Background: Pursuant to City policy and state law, the City has prepared financial statements for the year ended June 30, 2021, in accordance with generally accepted accounting principles (GAAP). Those statements were audited by an independent public accounting firm, Van Lant and Fankhanel, LLP, licensed by the State of California, and knowledgeable of governmental accounting and reporting. Discussion: Management is pleased to submit the City of Ukiah’s Annual Comprehensive Financial Report (ACFR) for the fiscal year ended June 30, 2021. This report is prepared by the Accounting Division of the Finance Department in accordance with state law, generally accepted accounting principles (GAAP), and the best management practices for financial reporting as defined by the Government Finance Officers’ Association (GFOA). California law requires that a financial report be prepared annually and audited by a licensed certified public accountant within a reasonable period of time following the year end. These financial statements are presented in conformity with GAAP and audited in accordance with generally accepted auditing standards. Responsibility for the accuracy of the data and the fairness of presentation, including all footnotes and disclosures, rests with City management. We believe the data presented in this report is accurate in all material respects, and all statements and disclosures necessary for the reader to obtain a thorough understanding of the City’s financial activities have been included. GAAP requires that management provide a narrative introduction, overview, and analysis to accompany the basic financial statements in the form of Management’s Discussion and Analysis (MD&A). The City’s MD&A can be found immediately following the report of the independent auditor. Management of the City has established an internal control framework that is designed both to protect the City’s assets from loss, theft, or misuse and to compile sufficient, reliable information for the preparation of the City’s financial statements in conformity with GAAP. Because the cost of internal controls should not outweigh their benefits, the City’s framework of internal controls has been designed to provide reasonable, rather than absolute, assurance that the financial statements will be free from material misstatements. While traditionally addressed to the governing body of the City, this report is intended to provide relevant Page 607 of 858 Page 2 of 2 financial information to external users (non-management employees), who include the citizens of the City of Ukiah, City staff, creditors, investors, and other concerned readers. We encourage all readers to contact the Finance Department with any questions or comments concerning this report. The City’s financial statements have been audited by Van Lant & Fankhanel, LLP, a firm of certified public accountants. The goal of the independent audit is to provide reasonable assurance that the financial statements of the City for the fiscal year ended June 30, 2021, are free of material misstatements. The independent audit involved examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. Based upon the audit, the independent auditors concluded that there was reasonable basis for rendering an unqualified opinion, which states that the City’s financial statements for the fiscal year ended June 30, 2021, are presented fairly in conformity with GAAP. The independent auditor’s report is presented as the first component of the financial section of this report. There were, however, audit findings, recommendations, and subsequent management responses made to several items related to internal control, most of which were carryovers from prior fiscal years. That information is found in the ACFR beginning on page 183 (page 212 of the pdf). Management addressed several of those items from the past and is committed to addressing the remaining items in the 2021-22 fiscal year and beyond. Management will present the 2021 ACFR (Attachment 1) to Council and highlight key elements of the report for its consideration, including how to navigate the document. Attachment 2 is the presentation Finance provides Council to accompany the ACFR. Council may use it as a primer to better understand the document. Recommended Action: Receive and file ACFR. BUDGET AMENDMENT REQUIRED: N/A CURRENT BUDGET AMOUNT: N/A PROPOSED BUDGET AMOUNT: N/A FINANCING SOURCE: N/A PREVIOUS CONTRACT/PURCHASE ORDER NO.: N/A COORDINATED WITH: N/A Page 608 of 858 City of Ukiah, California Annual Comprehensive Financial Report Fiscal Year Ended June 30, 2021 Attachment 1 Page 609 of 858 Annual Comprehensive Financial Report City of Ukiah, California Fiscal Year Ended June 30, 2021 Prepared by City of Ukiah Finance Department | Accounting Division Team Members: Daniel Buffalo, MPA, CPA, CGMA | Finance Director Ginny Feth-Michel, CPA | Assistant Finance Director Mary Horger | Financial Services Manager – Procurement, Capital, and Special Projects Olga Keough, CPA | Controller Sarah Brown, Financial Services Manager - Disbursements Attachment 1 Page 610 of 858 This Page Intentionally Left Blank Attachment 1 Page 611 of 858 Table of Contents Introductory Section Letter of Transmittal ....................................................................................................................................... i Profile of the City of Ukiah ......................................................................................................................... ii The City of Ukiah Organization ................................................................................................................. iii Current Economic Conditions and Outlook .............................................................................................. vi Major Initiatives ........................................................................................................................................ xi Measure P ................................................................................................................................................ xii Measure Y ............................................................................................................................................... xiv Relevant Financial Policies ..................................................................................................................... xv Acknowledgements ................................................................................................................................. xv GFOA Certificate of Achievement .............................................................................................................. xvii List of Officials ........................................................................................................................................... xviii City Organizational Chart ........................................................................................................................ xix Financial Section Independent Auditor’s Report ....................................................................................................................... 1 Management Discussion and Analysis (MD&A) (Required Supplementary Information) ............................. 4 Financial Highlights ................................................................................................................................... 4 Overview of the Annual Comprehensive Financial Report ....................................................................... 4 Government-Wide Financial Analysis ....................................................................................................... 8 Capital Assets and Debt Administration .................................................................................................. 14 Fund Financial Analysis .......................................................................................................................... 15 Governmental Funds ............................................................................................................................... 15 Proprietary Funds .................................................................................................................................... 16 Budgetary Comparison ........................................................................................................................... 16 Economic Outlook ................................................................................................................................... 18 Requests for Information ......................................................................................................................... 19 Government-Wide Financial Statements .................................................................................................... 20 Statement of Net Position.................................................................................................................... 21 Statement of Activities ......................................................................................................................... 22 Fund Financial Statements ......................................................................................................................... 23 Governmental Funds ............................................................................................................................... 23 Balance Sheet ..................................................................................................................................... 24 Attachment 1 Page 612 of 858 Reconciliation of the Governmental Funds Balance Sheet to the Statement of Net Position ........ 25 Statement of Revenues, Expenditures, and Changes in Fund Balances ........................................... 26 Reconciliation of the Governmental Funds Statement of Revenues, Expenditures, and Changes in Fund Balances to the Statement of Activities ................................................................................. 27 Proprietary Funds .................................................................................................................................... 28 Statement of Net Position.................................................................................................................... 29 Statement of Revenues, Expenses, and Changes in Net Position ..................................................... 30 Statement of Cash Flows .................................................................................................................... 31 Fiduciary Funds ....................................................................................................................................... 32 Statement of Fiduciary Net Position .................................................................................................... 33 Statement of Changes in Fiduciary Net Position ................................................................................ 34 Notes to the Basic Financial Statements Index .......................................................................................... 35 Note 1 - Summary of Significant Accounting Policies ............................................................................. 36 Note 2 - Stewardship, Compliance, and Accountability .......................................................................... 46 Note 3 - Cash and Investments .............................................................................................................. 47 Note 4 - Accounts Receivable ................................................................................................................. 51 Note 5 – Notes and Loans Receivable ................................................................................................... 52 Note 6 - Capital Assets ........................................................................................................................... 53 Note 7 - Long-Term Liabilities ................................................................................................................. 55 Note 8 – Landfill Closure and Post Closure Costs .................................................................................. 60 Note 9 - Interfund Transactions and Interfund Borrowing ....................................................................... 60 Note 10 - Risk Management ................................................................................................................... 62 Note 11 - Public Employee Retirement Plan........................................................................................... 64 Note 12 – Related Organizations ............................................................................................................ 76 Note 13 - Commitments and Contingencies ........................................................................................... 77 Note 14 – Successor Agency Trust, Former Ukiah Redevelopment Agency ......................................... 78 Note 15 – New Pronouncements ............................................................................................................ 81 Note 16 – Service Contracts ................................................................................................................... 82 Required Supplementary Information (RSI) ................................................................................................ 84 Schedules of Contributions and Proportionate Share of Net Pension Liability, Agent Multiple Employer (Miscellaneous), Last Ten Years ........................................................................................ 84 Schedules of Contributions and Proportionate Share of Net Pension Liability, Cost Sharing Plan (Safety), Last Ten Years ..................................................................................................................... 86 General Fund Budgetary Comparison Schedule ................................................................................ 88 HOME Program Income Budgetary Comparison Schedule ................................................................ 89 Notes to Required Supplemental Information ..................................................................................... 90 Attachment 1 Page 613 of 858 Supplementary Information ......................................................................................................................... 91 Streets Capital Improvement Budgetary Comparison Schedule ........................................................ 92 Pension Debt Service Budgetary Comparison Schedule .................................................................... 93 Nonmajor Governmental Funds .............................................................................................................. 94 Combining Balance Sheet – Special Revenue ................................................................................... 99 Combining Balance Sheet – Capital Project ..................................................................................... 103 Combining Balance Sheet – Permanent ........................................................................................... 105 Combining Statement of Revenues, Expenditures, and Changes in Fund Balance – Special Revenue ........................................................................................................................................................... 107 Combining Statement of Revenues, Expenditures, and Changes in Fund Balance – Capital Project ........................................................................................................................................................... 111 Combining Statement of Revenues, Expenditures, and Changes in Fund Balance – Permanent ... 113 Governmental Fund Budget Comparisons ............................................................................................ 115 Special Revenue Fund ...................................................................................................................... 115 Prop 172 ............................................................................................................................................ 116 Museum Grant Fund ......................................................................................................................... 117 ARRC ................................................................................................................................................ 118 Downtown Business Improvement .................................................................................................... 119 Low-Mod Income Housing Fund (LMIHF) ......................................................................................... 120 Winter Special Events ....................................................................................................................... 121 Advanced Planning ........................................................................................................................... 122 Highway User Tax (Gas Tax) ............................................................................................................ 123 Signalization ...................................................................................................................................... 124 1998 STIP Augmentation .................................................................................................................. 125 SB 325 Reimbursement .................................................................................................................... 126 S.T.P.................................................................................................................................................. 127 Trans-Traffic Congestion Relief ........................................................................................................ 128 CDBG Program Income .................................................................................................................... 129 CASP Certification and Training ....................................................................................................... 130 Asset Seizure .................................................................................................................................... 131 Sup. Law Enforcement Svc. (SLESF) ............................................................................................... 132 Community-Based Transitional Housing ........................................................................................... 133 Asset Forfeiture 11470.2 H&S .......................................................................................................... 134 Special Revenue - Police .................................................................................................................. 135 American Rescue Fund ..................................................................................................................... 136 Transfer Station ................................................................................................................................. 137 Attachment 1 Page 614 of 858 Equipment Reserve ........................................................................................................................... 138 Special Projects Reserve .................................................................................................................. 139 Park Development Fees .................................................................................................................... 140 Anton Stadium ................................................................................................................................... 141 Observatory Park .............................................................................................................................. 142 Playground & Park Amenities ........................................................................................................... 143 Swimming Pool .................................................................................................................................. 144 Riverside Park ................................................................................................................................... 145 Skate Park ......................................................................................................................................... 146 Softball Complex ............................................................................................................................... 147 Rail Trail ............................................................................................................................................ 148 Riparian Corridor Enhancement ........................................................................................................ 149 Combining Nonmajor Enterprise funds ................................................................................................. 150 Combining Statement of Net Position ............................................................................................... 151 Combining Statement of Revenues, expenses, and Changes in Net Position ................................. 152 Combining Statement of Cash Flows ................................................................................................ 153 Combining Internal Service Funds ........................................................................................................ 154 Combining Statement of Net Position ............................................................................................... 155 Combining Statement of Revenues, expenses, and Changes in Net Position ................................. 156 Combining Statement of Cash Flows ................................................................................................ 157 Combining Fiduciary Funds .................................................................................................................. 158 Combining Fiduciary Net Position ..................................................................................................... 159 Combining Statement of Changes in Fiduciary Net Position ............................................................ 160 Statistical Section Statistical Section Index ............................................................................................................................ 162 Financial Trends .................................................................................................................................... 164 Net Position by Component .............................................................................................................. 164 Changes in Net Position .................................................................................................................... 165 Fund Balances, Governmental Funds ............................................................................................... 167 Changes in Fund Balances, Governmental Funds ........................................................................... 168 Revenue Capacity ................................................................................................................................. 169 Tax Revenues by Source, Governmental Funds .............................................................................. 169 Property Tax Rates ........................................................................................................................... 170 Electric Utility Rates .......................................................................................................................... 171 Wastewater Utility Rates ................................................................................................................... 172 Attachment 1 Page 615 of 858 Water Utility Rates ............................................................................................................................. 173 Top Ten Electric Usage Customers .................................................................................................. 174 Debt Capacity ........................................................................................................................................ 175 Ratio of Outstanding Debt by Type ................................................................................................... 175 Ratio of General Bonded Outstanding Debt...................................................................................... 176 Computation of Direct and Overlapping Debt ................................................................................... 177 Legal Debt Margin Information .......................................................................................................... 178 Pledged Net Revenue Debt Coverage .............................................................................................. 179 Demographic and Economic information .............................................................................................. 180 Demographic and Economic Statistics .............................................................................................. 180 Principal Employers ........................................................................................................................... 181 Operating Information ........................................................................................................................... 182 Full-time and Part-time City Employees by Function ........................................................................ 182 Other Compliance Reports Independent Auditor’s Report on Internal Control .................................................................................... 183 Independent Accountant’s Report on Agreed-upon Procedures Applied to Appropriations Limit ............ 186 Attachment 1 Page 616 of 858 Introductory Section Attachment 1 Page 617 of 858 City of Ukiah, California i Introductory Section Letter of Transmittal December 30, 2021 To the Honorable Mayor, members of the City Council and citizens of the City of Ukiah: We are pleased to submit the City of Ukiah’s Annual Comprehensive Financial Report (CAFR) for the fiscal year ended June 30, 2021. This report is prepared in accordance with state law, generally accepted accounting principles (GAAP), and the best management practices for financial reporting as defined by the Government Finance Officers’ Association (GFOA). California law requires that a financial report be prepared annually and audited by a licensed certified public accountant within a reasonable period following the year end. These financial statements are presented in conformity with GAAP and audited in accordance with generally accepted auditing standards. Responsibility for the accuracy of the data and the fairness of presentation, including all footnotes and disclosures, rests with City management. We believe the data presented in this report is accurate in all material respects, and all statements and disclosures necessary for the reader to obtain a thorough understanding of the City’s financial activities have been included. GAAP requires that management provide a narrative introduction, overview, and analysis to accompany the basic financial statements in the form of Management’s Discussion and Analysis (MD&A). This letter of transmittal is designed to complement MD&A and should be read in conjunction with it. The City’s MD&A can be found immediately following the report of the independent auditor. Management of the City has established an internal control framework that is designed both to protect the City’s assets from loss, theft, or misuse and to compile enough, reliable information for the preparation of the City’s financial statements in conformity with GAAP. Because the cost of internal controls should not outweigh their benefits, the City’s framework of internal controls has been designed to provide reasonable, rather than absolute, assurance that the financial statements will be free from material misstatements. While traditionally addressed to the governing body of the City, this report is intended to provide relevant financial information to external users who include the citizens of the City of Ukiah, City staff, creditors, investors, and other concerned readers. We encourage all readers to contact the Finance Department with any questions or comments concerning this report. The City’s financial statements have been audited by Van Lant & Fankhanel, LLP, a firm of certified public accountants. The goal of the independent audit is to provide reasonable assurance that the financial statements of the City for the fiscal year ended June 30, 2021, are free of material misstatements. The independent audit involved examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. Attachment 1 Page 618 of 858 City of Ukiah, California ii Introductory Section Based upon the audit, the independent auditors concluded that there was reasonable basis for rendering an unmodified opinion, which states that the City’s financial statements for the fiscal year ended June 30, 2021, are presented fairly in conformity with GAAP. The independent auditor’s report is presented as the first component of the financial section of this report. This report includes all funds of the City and its blended component unit: The Successor Agency to the Ukiah Redevelopment Agency. Profile of the City of Ukiah The City of Ukiah is a full-service city in that it provides most typical municipal functions, including public safety (including police and fire protection), public works, community development and parks and recreation. In addition, the City provides proprietary services, including water, wastewater, electric, golf, and airport services. It operates in a council-manager form of government, whereby the council serves as the legislative body and the City Manager its executive. Incorporated on March 8, 1876 as a general law city, Ukiah serves as the administrative seat for the County of Mendocino, and with a residential population of more than 15,526 1 in a 4.7 square-mile area, Ukiah is graced with a strong business base and a well-established residential community. Ukiah is a travel and recreation-oriented destination and fortunate to serve as a hub for Lake, Mendocino, southern Humboldt, and northern Sonoma counties. The Ukiah business environment is positive and well organized. Driven by an active chamber of commerce, local businesses are community-oriented and engaged in City-business partnerships, including economic development, job creation, tourism, and community events. The City’s permanent retail trade area population is approximately 104,000 people with 45,000 within a 10-mile radius. Ukiah’s historic downtown area is the center of commercial activity within the community. There are also commercial areas along Orchard/Perkins corridor, Airport Park Boulevard, Perkins Street, as well as much of State Street. The City’s total labor force is approximately 6,960 2. Unemployment in Ukiah was approximately 6.4 percent in June 2021, down from 15.3 percent in 2020 3. Within ten miles, there is a diverse labor force specializing in such 1 2021 California Department of Finance, Demographic Research Unit, E-1 Population Estimates for Cities, Counties, and the State, May 2021 2 2021 California Employment Development Department, Labor Market Information Division, https://www.labormarketinfo.edd.ca.gov/data/interactive-labor-market-data-tools.html 3 Unemployment spike to end the fiscal year, June 30, 2020 due predominantly to the COVID-19 pandemic. Prior to March 2020, the unemployment rate in Ukiah was 5.9 percent. Attachment 1 Page 619 of 858 City of Ukiah, California iii Introductory Section occupations as sales, technical and professional services, education, medical, agriculture, and government services, and other specialties. The largest employment sectors in the Ukiah area are: government (county and city); education; healthcare; light industry; and the service and hospitality trades. The agricultural and construction sectors are important, and the transportation/public utilities, wholesale trade, finance/insurance/real estate and manufacturing sectors round out the employment picture. Some of the larger employers in the primary trade area include the Ukiah Valley Medical Center, Ukiah Unified School District, County of Mendocino, City of Ukiah, and Savings Bank of Mendocino County. Approximately 19.1 4 percent of all jobs in Mendocino County are located within the City of Ukiah. The City of Ukiah Organization The City is committed to providing high quality services in an economical manner. For fiscal year 2020-21, the City’s efforts were focused in the following areas: • Public safety services. Demand for police and fire services continued to grow. The Police Department sustained an aggressive recruiting strategy to attract officer candidates in a highly competitive job market, working to increase staffing of skilled officers capable of serving an expanding scope of duties to meet the broadened demands on law enforcement. These include untreated mental illness, substance abuse, homelessness, more sophisticated criminal use of technology, and the effects of prison realignment and decriminalization. With the continued and steady rise of incidents, the Fire Department saw an increasing number of times where all their resources are committed and unable to respond to additional calls for service. The COVID-19 pandemic elevated considerably the need for public safety services, working with other services offered by the City and Mendocino County to ensure the Ukiah community could navigate the effects of the pandemic. • Recreation and civic culture. The Community Services Department expanded programming to include Spanish-language swim classes, paddle boarding classes, pickleball, health and safety classes, aquatic yoga, and SCUBA certifications. Over 160 contractor classes were provided with a broad variety of offerings. Additionally, the department improved Spanish-language accessibility by providing forms and flyers in Spanish. These additional activities enable the City to effectively serve even more of our valued community members. Events are an important part of Ukiah’s culture, education, economic and social well-being, and City staff organized and hosted numerous events throughout the year including: PumpkinFest, Sundays in the Park, Moonlight Movie Madness, All American Picnic in the Park, Flynn Creek Circus, Community Yard Sale and Kids Triathlon. At the Grace Hudson Museum, the City replaced incandescent gallery lighting with LED lights, thus conserving energy and utilities expenses over time. Museum staff embraced the challenge of finding new and diverse ways to engage the public in this time of pandemic. 4 2021 California Employment Development Department, Labor Market Information Division, https://www.labormarketinfo.edd.ca.gov/data/interactive-labor-market-data-tools.html Attachment 1 Page 620 of 858 City of Ukiah, California iv Introductory Section The Civic Center Council Chambers received a significant audio/visual overhaul and upgrade, allowing better community engagement and outreach as the Council conducts their meetings and City business. • Community preparedness and emergency management. Unprecedented wildfires, drought, Public Safety Power Shut-offs, and the COVID-19 pandemic have led to an increased need for community outreach and emergency preparedness. The City responded to these needs by prioritizing emergency management through staff reassignments to provide a full-time Emergency Manager and a part-time analyst. The reassignments ensured that the City could provide optimal response to the pandemic and prepare for other disasters. The City’s Emergency Management Office partnered with the Ukiah Valley Fire Authority, Mendocino College, Adventist Health Ukiah Valley, Coastal Valley EMS, North Coast Opportunities, and Mendocino County Public Health, to organize a COVID-19 testing and vaccination sites where thousands of community members were successfully tested and/or vaccinated for COVID-19. Additional emergency preparedness efforts included the ongoing development of community partnerships, collaboration to develop fire fuel breaks, and community outreach and preparedness events. • Housing. The City of Ukiah adopted a 2021-2027 Housing Element on October 23, 2019, and the newly updated Housing Element was certified by the State Department of Housing and Community Development (HCD) on December 5, 2019. The City continued its efforts in 2021, implementing the measures contained in the Housing Element, with deliberate focus on increasing the supply of housing and bringing in over $4.5 million in grant funding to support that effort. • Improving our streets and infrastructure. Public Works has continued to utilize Measure Y funds for the improvement of all streets throughout the City. In this effort, the establishment of a Construction Management and Inspection Team has been implemented, as requested by Council. Altogether, $2.9 million was expended on streets from Measure Y alone (additional discussion of this provided later in this letter). The Public Works Department, in partnership with the Electric Utility Department and City Manager’s Office, continued work on the Ukiah Streetscape Project. When completed, the Ukiah Streetscape Project will provide streetscape improvements in downtown Ukiah on State Street, Perkins Street, and Standley Street, including sidewalk widening, curb ramps and bulb outs, street lights, street furniture and tree planting. The project also includes a road diet between Henry Street and Mill Street that will transform the existing four-lane cross section to improve traffic and pedestrian safety and streamline traffic flow. This work also will comprise of pavement overlay, striping, and pavement markings. Capital projects continued at the City of Ukiah Municipal Airport. A $3.8 million dollar grant from the Federal Aviation Administration (FAA) awarded to the City supported runway improvements. Attachment 1 Page 621 of 858 City of Ukiah, California v Introductory Section The project includes replacement of 75 feet of center runway, the installation of a new blast pad, and surface treatment for the remainder of the runway. Additionally, lighting, pavement markings, and signage were updated during this project. From daily freight operations to emergency services and so much more, the airport is itself an economic engine for the area. Resiliency and sustainability continue to be major areas of focus for the City. In 2020-21, the Electric Utility Department completed a substantial utility undergrounding project in Oak Manor and began the Gobbi Street undergrounding project. Utilities will also be moved underground on State Street in the Streetscape Project area. The Department completed the State Fire Mitigation Plan, continues to participate in the State’s Low Carbon Fuel Standard Program, and has expanded maintenance and preventative testing. These projects significantly increase our fire resiliency as well as reduce the risks of electrical outages for all customers. Our Water Resources Department made significant progress in the replacement of an existing 100,000-gallon water reservoir in Pressure Zone 2 South. They also replaced several water mains as part of an ongoing capital improvement program, updated the Urban Water Management Plan, and re-initiated water rights petitions to ensure that this valuable resource provides maximum benefits for our community. The Recycled Water Division completed Phases 1-3 of the recycled water project, a highly successful component of the City’s sustainability efforts, and the team will begin design of Phase 4. Phases 1-3 are currently serving about 650 acres of agriculture (vineyards, orchards, and alfalfa) 20 acres of pasture, and 15 acres of turf (3 parks and a school). From all sources this year, the City spent over $7.3 million on streets and rights-of-way infrastructure and $22.2 million in utility and support services infrastructure, totaling $29.5 million. The City Council establishes annual budgets for the General Fund, proprietary (enterprise and internal service) funds, and all special revenue funds, with a possible exception for certain special revenue funds for which expenditures are controlled by grant funding or by special assessments. Budgetary control is legally maintained at the fund level. Department heads submit budget requests to the City Manager. The City Manager prepares an estimate of revenues and prepares recommendations for the next year’s budget. The preliminary budget may or may not be amended by the City Council and is adopted by resolution by the City Council on or before June 30. The Ukiah City Council consists of five members, elected at-large to four-year overlapping terms. Council members must be residents of the City. The positions of Mayor and Vice Mayor are chosen by the Council through its own policy. The Mayor conducts the Council meetings and represents the City in ceremonial functions. The City Council serves as the policy board for the municipality. It provides policy direction, establishes goals, and sets priorities for the City government. In addition to serving as the broad policy makers for the community, the City Council also is responsible for numerous land use decisions within its borders, including the General Plan. The City Council appoints the City Manager, the City Attorney, and all members of advisory boards and commissions. The City also maintains an elected City Treasurer. Attachment 1 Page 622 of 858 City of Ukiah, California vi Introductory Section Current Economic Conditions and Outlook The information presented in the financial statements is perhaps best understood when it is considered from the broader perspective of the specific environment within which the City operates. Understanding that property and sales taxes generate the City’s largest two sources of general revenue, it is important to look at the economy in the context of people’s wherewithal for producing General Fund tax revenues. Like every community in the nation, Ukiah was hit hard by the COVD-19 pandemic. The local economy, however, endured (and continues to endure) through the most challenging financial impacts of it. Due in large part to its diverse, economic base and function as an economic hub to the greater Mendocino, Lake, southern Humboldt, and northern Sonoma counties, Ukiah businesses have persevered, and the City finances have remained reasonably stable. Prior to March 2021, unemployment remained low, and consumer spending (through sales tax analysis), building permits, and planning work indicates economic confidence to invest in housing and business development was strong. The housing market, while making progress toward recovering values from the highs of 2007, remained strong, albeit insufficient to meet the demands for market-based housing due to its low supply of units and high prices. The City’s economic development efforts and development of a high-quality workforce help to promote Ukiah’s long-term fiscal stability. This will be a cornerstone in the Council’s approach to debt structuring, capital improvement planning, labor negotiations, and service delivery. As mentioned earlier, the City’s principal General Fund revenue sources are sales tax and property taxes. Sales tax (most notably) grew significantly from the year prior to end the fiscal year. Tax revenue sources are expected continue to grow modestly in the first quarter of FY 2022. But so much of that continued growth depends on the actions of the federal government, most notably Congress, in its economic response to the pandemic, including measure to address inflationary pressures on local businesses and consumers. Underlying property-related revenues in general are expected to increase modestly FY 2021-21 and beyond, likely to average 2-2.5 percent; however, as illustrated in Figure 1 below, revenue received from this source increased at a higher rate due to adjustments of property tax increment payments to the City from the County of Mendocino. These adjustments are related more to the effects from dissolution activities of the former Ukiah Redevelopment Agency than to underlying property values in the former redevelopment project area. Attachment 1 Page 623 of 858 City of Ukiah, California vii Introductory Section FIGURE 1 As the hub of Mendocino County, Ukiah has a strong sales tax base. This served the City well in providing sufficient revenues to maintain service levels at pre-pandemic levels with minimal interruption or disruption. The City realized positive sales tax returns beyond initial budgetary estimates for the year and exceeded amounts realized in the prior year, as Figure 2 demonstrates. We forecast continued growth and strong revenues from sales tax sources in the coming year and, short of an immediate recession, beyond for at least another. But we continue to take a cautiously optimistic view at this time and plan service delivery and budgetary estimates with conservative revenue assumptions. FIGURE 2 Attachment 1 Page 624 of 858 City of Ukiah, California viii Introductory Section Financial Condition: General Revenues - Top Ten: FIGURE 3 The City’s top ten revenue sources account for 83.2 percent of total General Fund income. Focusing on these sources can provide a useful understanding of the City’s revenue position. Overall, these key revenues performed better in 2021 than in 2020. The strongest performer was Redevelopment Tax Increment pass-through, due principally to changes in funding and obligation requirements for the Ukiah Redevelopment Successor Agency. Business license tax revenue was next, but increased revenues from this source reflected more on the timing of payments from businesses that were past due or late in payment from the prior year. The most informative change in terms of the underlying revenue picture for the City’s general fund is that of sales and transaction and use taxes. As the City is strongly reliant on the economic vitality of its retailers, strong returns in this revenue source signaled strong overall economic health for both the City and broader retail trade area. Attachment 1 Page 625 of 858 City of Ukiah, California ix Introductory Section TOP 10 - REVENUES Current from Prior Year Ended June 30, 2021 Percent of Percent Total 2020-21 REVENUE 2020-21 2019-20 Change General Revenues Top 10: Bradley-Burns Sales Tax 7,813,891$ 6,572,573$ 18.89%29.11% 1/2% District Sales Tax (Measure Y)3,862,145 3,368,450 14.66%14.39% 1/2% District Sales Tax (Measure P)3,858,985 3,372,183 14.44%14.38% Prop Tax In Lieu Of Vlf 1,559,290 1,530,602 1.87%5.81% Transient Occupancy Tax (TOT)1,362,133 1,365,477 -0.24%5.08% Redevelopment Tax Increment Pass-Through 1,007,559 763,483 31.97%3.75% City Utility Franchise Fee 979,180 951,857 2.87%3.65% Secured Property Tax 710,556 743,317 -4.41%2.65% Refuse Disposal Franchise Fee 686,967 657,307 4.51%2.56% Business License Tax 484,533 389,829 24.29%1.81% Total top 10 22,325,239 19,715,078 13.24%83.18% Other Revenue 4,513,875 1,620,423 178.56%16.82% Total current revenue 26,839,114$ 21,335,501$ 25.80%100.00% FIGURE 4 Sales Tax. The City collects sales tax from three sources: normal Bradley-Burns sales taxes (1 percent of taxable transactions), a ½ cent transaction and use tax, commonly referred to as Measure P, and a ½ cent transaction and use tax, commonly referred to as Measure Y. All are devoted entirely to the City and are distinct and considered separate sources of revenue. Each behave slightly differently given their tax base. Bradley- Burns sales taxes are referred to as “sales and use” taxes, levied on transactions based geographically in the City. Measures P and Y are referred to as a “transaction and use” taxes and is applied to any taxable sale in the Attachment 1 Page 626 of 858 City of Ukiah, California x Introductory Section City as well as any sale where the use of the item is in the City. For instance, a car purchased outside the City but registered to, and therefore presumed to be used at, an address within would be levied the ½ cent on the purchase price for Measure P and the same amount for Measure Y. Both are general taxes and can be used for any regular, general governmental purpose; however, the City Council, through resolution, has assigned their use to public safety and streets, respectively. Overall, sales taxes receipts (Bradley-Burns and Measure P) were up from a year ago due in part to growth across most of the City’s major industry groups. Driving the change was general consumer goods (up 13.9% from the prior year), which also affected the City’s share in the state and county pool allocation (up 28.9%). All sales tax due the City is administered by the California Department of Tax and Fee Administration (CDTFA). Property Tax in Lieu of VLF (Vehicle License Fee). These are property tax shares allocated to cities and counties beginning in FY 04-05 as compensation for the state’s take of Vehicle License Fees (VLF). This revenue source typically follows regular property tax collections, discussed under “Secured Property Tax” below and is up 1.87 percent compared to last year. Transient Occupancy Tax (TOT). Commonly referred to as a “bed,” “hotel,” or “room” tax this revenue source was performing strongly over the last two years up until March. Travel restriction brought on by the pandemic will continue to negatively affect this revenue source. However, driven by increased tourism in the greater Ukiah Valley area and a larger volume of travelers heading north, this revenue source is poised to continue its growth trend for several more years after the pandemic has abated. Visitors are stopping in Ukiah as a final layover before making the trek to Fort Bragg and Humboldt County and are exploring the wonders of what the Ukiah Valley has to offer. The TOT rate in Ukiah currently is 10 percent; however, 1 percentage point has been committed by the Ukiah City Council to fund the Visit Ukiah Program. City Utility Franchise Fees. This revenue source is a charge to the City’s electric utility. Franchise fees are not taxes; rather, they are rents paid by utility providers to operate on or in City rights-of-way and City property, such as roads, sidewalks, parklands, etc. The rents are established by the City Council and typically are correlated to gross revenues generated by the utility provider. Revenues from this source remain stable with a nominal increase from the prior year. Redevelopment Tax Increment Pass-Through. After the dissolution of Redevelopment in California by the Legislature, the Ukiah Redevelopment Agency was sent into receivership of a successor agency. Property tax increment revenue once received by the former redevelopment agency was instead held in trust by the County Auditor-Controller in a specific fund, affectionately known as the Redevelopment Property Tax Trust Fund (RPTTF). Property tax increment collected in this fund would first pay the County Auditor-Controller’s administrative costs, then pass to the successor agency of the former RDA (City of Ukiah) to satisfy the obligations of the former agency, then to the taxing entities in the project area of the former RDA, including the Ukiah Unified School District and the County of Mendocino General Fund. The City also receives a share of these residuals which are reported in the General Fund. This revenue source tracks like regular (secured) property tax, although it is calculated from a slightly different derivative property tax base (tax increment). Attachment 1 Page 627 of 858 City of Ukiah, California xi Introductory Section Secured Property Tax. Traditionally, revenue from property tax was viewed as a very stable source. The housing collapse of 2008 tested that assumption. However, as the housing market continued to recover modestly in Ukiah, receipts came in lower than the year prior. This was due to adjustments made by the County Auditor-Controller. Slightly less than 11 percent of property taxes paid by property owners within the City are allocated to the City. The majority is distributed to local schools and the County of Mendocino. Depending on the final economic outcome of the pandemic to Ukiah, revenue from this source may continue to trend positively over the next few years as the county continues to process Prop 8 property value adjustments and as housing prices and home sales increase. Refuse Disposal Franchise Fees. This revenue source is a charge to the City’s franchise solid waste hauler. As discussed earlier, franchise fees are not taxes; rather, in the case of refuse disposal franchise fees they are rents paid by the refuse hauler for the use of rights-of-way to provide and distribute its services. Refuse hauler vehicles used to haul refuse are utilized more frequently and wear roads more significantly than other commercial or non-commercial vehicles. Revenues from this source were higher in FY 2020-21 than in the preceding year due to increased sales and rate adjustments by the hauler, Ukiah Waste Solutions. Business License Tax. Businesses that operate within City limits are required to obtain a business license. The fees are based on the type of business and an estimate of their gross receipts. The proceeds from the tax collected are available for unrestricted use in the General Fund. As mentioned earlier, receipts were higher in 2021 than in the prior year due to late payments. Before the onset of the pandemic in March 2021, business license activity was trending positively. That trend has slowed and likely will normalize in the 2022 fiscal year. Major Initiatives The Ukiah City Council, through a strategic process of discussion, observation, and education, has developed the following set of focused priorities that help guide the development and implementation of policies, activities, and programs. These three areas are in no way all-encompassing of the City’s scope of work nor are they finite; rather, the strategic planning process is considered evolutionary and vision-based. All these areas work to further promote the vibrancy and sustainability of the Ukiah community and the organization. Strategic Plan Priorities • Enhance Our Neighborhoods: Foster a sense of small-town life by embracing our diversity and supporting our residents with quality services and vibrant places (People, Places, & Services). • Develop Quality Infrastructure: Implement a prioritized plan for maintaining and improving public infrastructure and utilities. • Plan for the Future: Utilize sound principles for valley-wide planning • Grow our Businesses: Facilitate the development of a sound local economy that attracts investment, promotes economic diversity, supports businesses, creates employment opportunities, and generates public revenues. • Value our Team: Ensure Council and staff work together to create a more responsive and effective workplace environment. Attachment 1 Page 628 of 858 City of Ukiah, California xii Introductory Section Measure P Measure P, passed by a simple majority (50 percent plus 1) of Ukiah voters in November of 2014, is a general (unrestricted) transaction and use tax. A general, unrestricted tax is one that can be used to fund any program, function, service, or project at the discretion of the City Council. It is not a special, restricted tax, which would require approval of two-thirds of the voting public. It continued a sun-set transaction and use tax, known as Measure S (2005), accompanied by an advisory Measure T (2005). Measure P, however, was passed with no advisory measure. The purpose of Measure P is to augment public safety expenditures to provide a higher level of police and fire service to the community. Amounts collected from the tax are to be used in addition to the commitment of the General Fund and not in replacement of. The following graph demonstrates how the past revenue measure (S) and now Measure P have been employed with relation to the General Fund. Attachment 1 Page 629 of 858 City of Ukiah, California xiii Introductory Section 2014-15 2020-21 Variance with Baseline Actual Baseline REVENUES Measure P $ 2,465,521 $ 3,858,985 $ 1,393,464 Public safety revenues: Police 1,001,861 296,441 (705,420) Fire 37,235 196,930 159,695 Prop 172 53,471 102,251 48,780 General revenues (general fund) 7,922,006 9,100,101 1,178,095 Total revenues 11,480,094 13,554,708 2,074,614 EXPENDITURES Current: Police 8,709,693 9,308,866 (599,173) Fire 2,553,407 4,166,491 (1,613,084) Total current 11,263,100 13,475,357 (2,212,257) Capital outlay: Police 186,594 55,999 130,595 Fire 30,400 23,352 7,048 Total capital outlay 216,994 79,351 137,643 Total expenditures 11,480,094 13,554,708 (2,074,614) Excess (deficiency) of revenues over expenditures $ - $ - $ - PERSONNEL Police: Sworn 32 27 (5) Miscellaneous 18 17 (1) Total police 50 44 (6) Fire: City 11 18 7 UVSD 6 - (6) Total fire 17 18 1 Notes: 1) Excludes parking enforcement expenditures and associated revenue. 2) Excludes dispatch service revenue, except for general fund contributions. 3) Includes a temporary reduction in budgeted officers and an increase to the number of CSO positions, an interim measure to meet work demands due to the number of sworn officer vacancies. 4) Does not include Emergency Management services, which are included in Public Safety on the Statement of Revenues, Expenditures, and Changes in Fund Balance. City of Ukiah Measure P Schedule of Revenues, Expenditures, and Changes in Fund Balances – Baseline to Current Actual For the Year Ended June 30, 2021 Attachment 1 Page 630 of 858 City of Ukiah, California xiv Introductory Section Measure Y Measure Y, passed by a simple majority (50 percent plus 1) of Ukiah voters in November of 2016, is a general (unrestricted) transaction and use tax. A general, unrestricted tax is one that can be used to fund any program, function, service, or project at the discretion of the City Council. It is not a special, restricted tax, which would require approval of two-thirds of the voting public. Measure Z, passed in conjunction with Measure Y, was a distinctly separate, advisory Measure Y, indicating the voting public's preference for the use of Measure Y proceeds. Language for the two ballot measures was as follows: Ballot Measure “Y”: Shall Ordinance No. 1165 be adopted to impose as a general tax an additional transaction (sales) and use tax of on-half of one percent within the city limits of the City of Ukiah to fund essential City services, including street repair and maintenance. Such tax increase is estimated to raise $2,470,000 annually at a rate of 0.5 percent. The duration of the tax will continue unless or until the tax is repealed by majority vote in a municipal election. Advisory Measure “Z”: Shall street repair and maintenance and related public infrastructure improvements be the exclusive use of the revenues from an additional 0.5 percent sales tax int eh City of Ukiah and add to and not replace current spending for street maintenance and repair. 2021 2020 2019 2018 2017 T otal OPERATING REVENUES Measure Y 1/2 % transaction and use tax $ 3,862,145 $ 3,368,450 $ 3,016,205 $ 2,729,797 $ 528,057 $ 13,504,654 OPERATING EXPENSES General and administrative 10,251 17,733 10,150 5,444 9,134 52,712 Basic maintenance and operations 598,296 644,771 387,449 306,143 294,084 2,230,742 Enhanced capacity for maintenance and operations 158,500 154,479 60,260 1,979 - 375,217 Less: general fund maintenance of effort (see Note 1) (399,840) (385,086) (375,597) (373,870) (350,000) (1,884,393) Total operating expenditures 367,207 431,897 82,262 (60,304) (46,782) 774,279 DEBT SERVICE AND CAPITAL PROJECTS Debt service, I-Bank 75,538 75,638 75,638 75,638 - 302,452 Projects 2,688,687 2,689,759 4,526,294 1,841,113 38,460 11,784,313 Total debt service and capital projects 2,764,225 2,765,397 4,601,932 1,916,751 38,460 12,086,765 Total expenditures, Measure Y 3,131,432 3,197,294 4,684,194 1,856,446 (8,322) 12,861,044 Change in Measure Y resources 730,714 171,156 (1,667,989) 873,351 536,379 643,610 Measure Y resources - beginning (87,103) (258,259) 1,409,729 536,379 - Measure Y resources - ending $ 643,610 $ (87,103) $ (258,259) $ 1,409,729 $ 536,379 PROJECTS IN PROCESS (see Note 2) Reconstruction $ 243,044 Total projects in process $ 243,044 City of Ukiah Comparative Schedule of Resources and Uses Measure Y For the Years Ended June 30, 2021, 2020, 2019, 2018, and 2017 Measure Y Notes: 1. This is the amount established by the City Council, per Resolution 2016-34, committing a minimum of $350,000 per year from the general fund on street maintenance and repair. That amount is to be adjusted annually by changes to the Construction Cost Index, as reported by the Engineering News-Record. 2. Projects in process are projects and activities that are in contract (encumbered) but which have not incurred expenditures as of June 30, 2021. 3. Measure Y resources for Public Works Engineering Services were enhanced in FY 2020 to support basic maintenance and operations due to increased focus on Measure Y activities. Attachment 1 Page 631 of 858 City of Ukiah, California xv Introductory Section Relevant Financial Policies City Management has adopted a series of financial policies meant to guide its use and reporting of revenues. Some of the more germane policies as related to this report include the following: • All current operating expenditures will be paid for with current revenues, unless the use of reserves is approved by the City Council. • Revenues will be conservatively estimated. • Intergovernmental assistance in the form of grants and loans will be used to finance only: o Those capital improvements which can be maintained and operated over time; or o Operating programs that can either be sustained over time or have a limited horizon. • A minimum fund balance reserve in the General Fund will always be maintained. The minimal, optimal level required for this reserve will be 25 percent of the General Fund operating budget. The reserve will be drawn down as a funding source of last resort and used only after other reserve accounts have been accessed. • The unrestricted fund balance in the General Fund will be maintained at a level enough to provide adequate working capital and to accommodate required adjustments to other reserve accounts, including the reserves for advances to other funds, deposits and prepaid items. • In general, one-time revenues will be used only to support capital or other non-recurring expenditures. One-time revenues may be used for operating programs only after an examination determines if they are subsidizing an imbalance between operating revenues and expenditures; and then only if a long-term forecast shows that the operating deficit will not continue. • The City invests all idle cash as determined by analysis of anticipated cash flow needs. Specific emphasis will be placed on future cash requirements when selecting maturity dates to avoid forced liquidations and the potential corresponding loss of investment earnings. • When the City finances capital projects by issuing bonds or acquiring loans, it will pay back those obligations within a period that is consistent with the useful life of the project. • The City requires an annual audit of the books of account, financial records, inventories and reports of all City officers and employees involved in the handling of financial matters by a qualified independent auditor. Information concerning significant accounting policies affecting the finances of the City is summarized in the Notes to the Financial Statements. Acknowledgements The preparation of this Annual Comprehensive Financial Report could not be accomplished without the efficient and dedicated service of the entire staff of the Finance Department, the City’s Management Team, and the auditing firm of Van Lant & Fankhanel, LLP. We would like to express our appreciation to Brett Van Lant, CPA; Greg Fankhanel, CPA; the staff of Van Lant & Fankhanel; and to the members of the Finance Department, City Manager’s Office, and other administrative divisions who assisted and contributed to its development. Attachment 1 Page 632 of 858 City of Ukiah, California xvi Introductory Section We also would like to thank members of the City Council and all City departments for their cooperation and support in planning and conducting the financial operations of the City during the fiscal year. Respectfully submitted, Sage Sangiacomo City Manager Daniel Buffalo, MPA, CPA, CGMA Finance Director Attachment 1 Page 633 of 858 City of Ukiah, California xvii Introductory Section GFOA Certificate of Achievement Attachment 1 Page 634 of 858 City of Ukiah, California xviii Introductory Section City of Ukiah, California List of Officials June 30, 2021 CITY COUNCIL UKIAH REDEVELOPMENT SUCCESSOR AGENCY BOARD OF DIRECTORS Juan Orozco Mayor Jim Brown Vice Mayor Doug Crane Council Member Maureen Mulheren Council Member Steve Scalmanini Council Member EXECUTIVE MANAGEMENT TEAM Sage Sangiacomo City Manager Shannon Riley Deputy City Manager David Rapport City Attorney Kristine Lawler City Clerk Justin Wyatt Chief of Police Doug Hutchison Fire Authority Chief Daniel Buffalo Finance Director Sheri Mannion Human Resources/Risk Management Director Tim Eriksen Public Works Director/City Engineer Craig Schlatter Community Development Director Greg Owen Airport Manager Mel Grandi Electric Utility Director Sean White Water Resources Director Neil Davis Community Services Director Attachment 1 Page 635 of 858 City of Ukiah, California xix Introductory Section City Organizational Chart Attachment 1 Page 636 of 858 Financial Section Attachment 1 Page 637 of 858 Independent Auditor’s Report The Honorable City Council City of Ukiah, California Report on the Financial Statements We have audited the accompanying financial statements of the governmental activities, business-type activities, each major fund, and the aggregate remaining fund information of the City of Ukiah (City), as of and for the year ended June 30, 2021, and the related notes to the financial statements which collectively comprise the City’s basic financial statements as listed in the table of contents. Management’s Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America, this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to error or fraud. Auditor’s Responsibility Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. Attachment 1 Page 638 of 858 Opinions In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, business-type activities, each major fund, and the aggregate remaining fund information of the City of Ukiah, as of June 30, 2021, and the respective changes in financial position, and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America. Other Matters Required Supplementary Information Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis and required supplementary information, as listed in the table of contents, be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Other Information Our audit was conducted for the purpose of forming an opinion on the financial statements that collectively comprise the City’s basic financial statements. The introductory section, the schedules listed in the supplementary Information section of the table of contents, and statistical section, are presented for purposes of additional analysis and are not a required part of the basic financial statements. The schedules listed in the supplementary information section of the table of contents are the responsibility of management and were derived from and relate directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the schedules listed in the supplementary information section of the table of contents are fairly stated in all material respects in relation to the basic financial statements as a whole. The introductory and statistical sections have not been subjected to the auditing procedures applied in the audit of the basic financial statements and, accordingly, we do not express an opinion or provide any assurance on them. Attachment 1 Page 639 of 858 Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued a report dated December 30, 2021, on our consideration of the City’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City’s internal control over financial reporting and compliance. Murrieta, California December 30, 2021 Attachment 1 Page 640 of 858 City of Ukiah, California Financial Section: Required Supplementary Information | MD&A Page | 4 Management Discussion and Analysis (MD&A) (Required Supplementary Information) The following discussion provides readers of the City of Ukiah’s financial statements a narrative overview and analysis of the financial activities of the City for the fiscal year ended June 30, 2021. We encourage readers to consider the information presented here in conjunction with the Independent Auditor’s Report, the basic financial statements, and the accompanying notes. Financial Highlights • City assets and deferred outflows exceeded its liabilities and deferred inflows of resources by $166.9 million (net position) as of June 30, 2021. • Deferred inflows and outflows related to the City’s unfunded accrued pension liabilities (UAL) with CalPERS changed from the prior year due to gains and losses recognized by CalPERS, including contributions made by the City. • The City’s net position in total increased by $7.4 million during the fiscal year 2020-21. • The net position for governmental activities ended the year at $47.9 million, while the net position of business activities was $119.0 million. • Of the $47.9 million in total governmental activities net position, a negative $18.5 million is characterized as unrestricted. • The governmental activities saw increased revenues from most major sources. Tax sources rose in the amount of $2.6 million driven by sales taxes. • Business activities saw revenue for charges for services increase by $3.1 million, resulting primarily from project reimbursements and changes to the rate revenue schedule for water and sewer services. Overview of the Annual Comprehensive Financial Report This Annual Comprehensive Financial Report is presented in three major parts: 1) Introductory section, which includes the Transmittal Letter and general information; and 2) Financial section, which includes the Management’s Discussion and Analysis (MD&A), the Basic Financial Statements, which include the Government-wide and the Fund Financial Statements, along with the notes to these financial statements and Combining and Individual Fund Financial Statements and Schedules; and 3) Statistical section, which includes financial, demographic and economic information on the City and surrounding community such as the value of taxable property, direct and overlapping tax rates, direct and overlapping debt, population and estimated per capita income. This Management Discussion and Analysis is intended to serve as an introduction to the financial section. The statements of this section are comprised of components including financial highlights, government-wide financial statements, fund financial statements, a General Fund budgetary comparison and an economic outlook. The Government-Wide Financial Statements The government-wide financial analysis provides an overview of the City’s activities and is comprised of the Statement of Net Position and the Statement of Activities. The Statement of Net Position provides information Attachment 1 Page 641 of 858 City of Ukiah, California Financial Section: Required Supplementary Information | MD&A Page | 5 about the financial position of the City as a whole, including all its assets, capital assets and liabilities on the full- accrual basis, like that used by private sector entities. The Statement of Activities provides information about all the City’s revenues and expenses, also on the full-accrual basis, with the emphasis on measuring net revenues or expenses of each the City’s major functions, which have been categorized as follows: Governmental Activities • General and administrative (City Council, City manager, City Clerk) • General government (e.g., administration, finance and accounting, human resources, legal, treasurer, etc.) • Community development (planning and building) • Roads and infrastructure (road maintenance, city engineer and public works,) • Housing and support programs (CDBG and HOME grants, etc.) • Redevelopment/Economic development • Public safety (Police and Fire) • Parks, buildings, and grounds (parks, building and grounds maintenance, etc.) • Culture and recreation (museum, pool, sports, etc.) Business-type activities • Airport • Ambulance • Conference Center • Electric • Golf Course • Landfill • Parking District • Street lighting • Wastewater • Water The Statement of Activities explains in detail the change in Net Position for the year. As indicated in the Financial Highlights, the City’s net position increased $9.7 million, which includes costs associated with depreciation and other non-budgeted items that may not influence cash or current financial resources but do affect net position. The statement presents expenses categorized by function or activity. This is done so that a direct connection can be made to the cost of providing that service or function for the year. The statement then presents how that activity was financed using funds other than those that can be used for any purpose (i.e. taxes, fines, investment earnings, etc.). This is an attempt to demonstrate how self-sufficient an activity was during the year. The remainder is the net expense covered by general revenues. All the City’s activities are grouped into either governmental activities or business-type activities, as explained below. The amounts in the Statement of Net Position and the Statement of Activities are separated into governmental activities and business-type activities in order to provide a clear summary of the two. Government-wide financial statements, prepared on the accrual basis, measure the flow of all economic resources of the City. The Statement of Net Position and the Statement of Activities present information about the following: Attachment 1 Page 642 of 858 City of Ukiah, California Financial Section: Required Supplementary Information | MD&A Page | 6 • Governmental activities—all the City’s basic services are governmental activities. These services are supported by general city revenues, such as taxes, and by specific program revenues such as user fees and charges. The City’s governmental activities also include the housing activities of the (former) Ukiah Redevelopment Agency, a separate legal entity for which the City is financially responsible. As of February 1, 2012, the Ukiah Redevelopment Agency was dissolved, and a successor agency was established to handle the remaining affairs and obligations of the former agency. The City of Ukiah elected to be that successor agency. Upon dissolution, the assets and liabilities of the former agency were transferred to a private-purpose trust fund, which is not reported on the government-wide statements but is presented in the fund-based statements using the full accrual basis of accounting. • Business-type activities—The City’s enterprise activities of electric, water, wastewater, recycled water, solid waste disposal site, parking, street lighting, airport, conference center and golf course are reported in this area. Unlike governmental activities, these services are supported by charges paid by users based on the amount of the service they use. Fund Financial Statements The fund financial statements report the City’s operations in more detail than the entity-wide statements and focus primarily on the short-term activities of the City’s General Fund and other major funds. The fund financial statements measure only current revenues and expenditures and fund balances; they exclude capital assets, long-term debt and other long-term amounts. Because the focus of fund statements is narrower than that of the government-wide, it is useful to compare the information presented for the governmental funds with similar information presented for governmental activities in the government-wide financial statements. By doing so, readers may better understand the long-term impacts of the City’s near-term financing decisions. Both the governmental activities Statement of Net Position and the governmental funds Statement of Revenues, Expenditures, and Changes in Net Position provide a reconciliation to facilitate this comparison between governmental funds and governmental activities. Major funds account for the largest portion of the financial activities of the City and are presented individually, while the activities of non-major funds are presented in summary, with supplementary schedules presenting the detail for each. Major funds are explained below. The fund financial statements provide detailed information about each of the City’s most significant funds, termed major funds. The concept of major funds, and the determination of which are major, was established by GASB Statement 34 and replaces the concept of combining like funds and presenting them in total. Instead, each major fund is presented individually, with all non-major funds summarized and presented only in a single column. Supplementary Information present the detail of these non-major funds. Major funds present the major activities of the City for the year and may change from year to year as a result of changes in the pattern of City’s activities. Attachment 1 Page 643 of 858 City of Ukiah, California Financial Section: Required Supplementary Information | MD&A Page | 7 For the fiscal year ended June 30, 2021, the City’s major funds were as follows: GOVERNMENTAL FUNDS: • General Fund • Streets Capital Projects • Pension Stabilization • HOME Program Income PROPRIETARY FUNDS: • Landfill • Electric Enterprise • Water Enterprise • Wastewater Enterprise The City’s enterprise funds (electric, water, wastewater and landfill) are reported as proprietary funds. Enterprise fund financial statements are prepared on the full-accrual basis, and include all their assets and liabilities, both current and long-term. The City adopts an annual appropriated budget for all governmental and proprietary funds. Budgetary comparison statements for the General Fund and all major governmental funds are presented as required supplementary information (RSI), as required by GASB 34. Proprietary budget comparison statements are not required or presented. Fiduciary Statements The City’s fiduciary activities are reported in the separate Statement of Fiduciary Net Position. These activities are excluded from the City’s other financial statements because the City cannot use these assets to finance its own operations. The City maintains two fund types in this category: custodial and private purpose trust funds. These funds include resources held by the City on behalf of the Ukiah Valley Sanitation District, The Russian River Watershed Association, and the Ukiah Valley Fire District and the Ukiah Redevelopment Successor Agency. They provide information about the cash balances and activities of these funds. In its presentation of these statements, the City has adopted the provisions of GASB 84: Fiduciary Activities. Notes to the Financial Statements The notes provide additional information that is essential to a full understanding of the data provided in the Government-wide and Fund Financial Statements. The notes to the basic financial statements can be found following the basic financial statement presentation of this report. Other Supplementary Information In addition to the basic financial statements and the accompanying notes, this report also presents combined statements, which illustrate the condition and activities of all non-major funds. The combining statements referred to earlier in connection with non-major governmental funds are presented immediately following the notes to the financial statements. Combining and individual fund statements can be found subsequent to the notes section of this report. Attachment 1 Page 644 of 858 City of Ukiah, California Financial Section: Required Supplementary Information | MD&A Page | 8 Government-Wide Financial Analysis Net Position Net position may serve over time as a useful indicator of a government’s financial position. The following table reflects the condensed net position for both governmental and business-type activities. 2021 2020 2021 2020 2021 2020 Current and other assets $ 40,455,893 $ 23,599,020 $ 36,056,999 $ 43,378,333 $ 76,512,892 $ 66,977,353 Capital assets(net) 58,404,222 53,075,972 178,049,774 173,928,238 236,453,996 227,004,210 Total assets 98,860,115 76,674,992 214,106,773 217,306,571 312,966,888 293,981,563 Deferred outflows of resources 35,276,895 6,786,028 18,409,328 2,572,408 53,686,223 9,358,436 Total assets and deferred outflows of resources 134,137,010 83,461,020 232,516,101 219,878,979 366,653,111 303,339,999 Current and other liabilities 5,879,729 1,796,527 3,200,728 5,784,110 9,080,457 7,580,637 Long-term liabilities 79,926,642 42,761,500 110,300,288 92,450,178 190,226,930 135,211,678 Total liabilities 85,806,371 44,558,027 113,501,016 98,234,288 199,307,387 142,792,315 Deferred inflows of resources 436,336 814,656 8,893 265,550 445,229 1,080,206 Total Liability and deferred inflows of resources 86,242,707 45,372,683 113,509,909 98,499,838 199,752,616 143,872,521 NET POSITION Net investment in capital assets 50,915,097 47,339,972 126,053,127 119,060,268 176,968,224 166,400,240 Restricted 15,484,736 10,544,419 251,126 99,829 15,735,862 10,644,248 Unrestricted (18,505,530) (19,796,054) (7,298,061) 2,219,045 (25,803,591) (17,577,009) Total net position $ 47,894,303 $ 38,088,337 $ 119,006,192 $ 121,379,142 $ 166,900,495 $ 159,467,479 Governmental Activities Business-type Activities Total The City’s net position as of June 30, 2021, was $166.9 million, an increase of $7.4 million. The overall change in net position is due in large part to a capital contribution to increased revenues from taxes as well as a reduction in expense related to unfunded pension liabilities. The City also accrued $9.98 million in grants, most notably for housing services and streets. Restricted net position of $15.7 million is primarily comprised of cash and cash-equivalents for use as prescribed by an outside entity, such as a grantor, bond holder, covenant, or other restricting entity or instrument, or are in the form of long-term notes receivable and are unavailable for spending. In the case for FY 2021, this is held primarily for Housing Programs in the form of loans receivable and unspent bond proceeds. A much small portion is restricted for public safety activities and streets. It is important to note that restricted cash and investments may be different than restricted net position, e.g., cash restricted by a bond indenture as part of a bond issue is offset by the corresponding liability on the statement of net position, which is part of net investment in capital assets. Unrestricted net position of negative $25.8 million includes cash and cash equivalents and may be used to meet the City’s ongoing obligations to citizens, creditors, and City-imposed designations (e.g. reserves, pending litigations, contingencies, capital projects, special grant and revenue programs and projects, etc.). It is negative primarily due to the City’s long-term obligations related to net pension liabilities, capital-related debt, and estimated landfill closure costs. The City’s working capital to meet current and other near-term operating and capital concerns was $52.2 million. Activities Expenses incurred by the City for FY 2021 year totaled $65.4 million, a decrease from FY 2020 of $3.0 million. Much of this decrease was related to reductions to pension costs of the City UAL with CalPERS. Governmental Attachment 1 Page 645 of 858 City of Ukiah, California Financial Section: Required Supplementary Information | MD&A Page | 9 expenses totaled nearly $24.9 million or 38.0 percent of total expenses. Public safety costs represented most of the governmental expenses, followed by public works and recreation. Business-type activities incurred $40.6 million of expense during the fiscal year, 62.0 percent of all City expenses. 2021 2020 2021 2020 2021 2020 REVENUES Program revenues: Charges for services $ 3,487,098 $ 2,157,277 $ 36,024,011 $ 32,912,229 $ 39,511,109 $ 35,069,506 Operating grants and contributions 7,890,530 4,431,684 759,696 2,830,622 8,650,226 7,262,306 Capital grants and contributions 771,125 76,898 556,033 24,876,967 1,327,158 24,953,865 General revenues: Taxes 20,822,658 18,231,528 16,714 16,815 20,839,372 18,248,343 Franchise fees 1,815,271 1,742,671 - - 1,815,271 1,742,671 Use of money and property 266,006 696,930 352,781 950,715 618,787 1,647,645 Other revenue 67,776 246,319 22,223 - 89,999 246,319 Total revenues 35,120,464 27,583,307 37,731,458 61,587,348 72,851,922 89,170,655 EXPENSES Governmental activities: General government 838,727 99,829 - - 838,727 99,829 Public safety 13,659,736 12,812,411 - - 13,659,736 12,812,411 Housing and community development 1,460,134 2,833,311 - - 1,460,134 2,833,311 Public works 3,426,376 4,752,062 - - 3,426,376 4,752,062 Parks, buildings, and grounds 1,560,436 248,989 - - 1,560,436 248,989 Recreation and culture 2,640,963 3,724,424 - - 2,640,963 3,724,424 Economic development and redevelopment 290,261 403,808 - - 290,261 403,808 Interest on long-term debt 992,902 165,210 - - 992,902 165,210 Business-Type activities: Airport - - 1,857,261 1,528,285 1,857,261 1,528,285 Ambulance Services - - 55,894 11,089 55,894 11,089 Conference Center - - (336,910) 503,445 (336,910) 503,445 Electric - - 19,695,234 18,854,227 19,695,234 18,854,227 Golf - - 144,680 251,078 144,680 251,078 Landfill - - 969,800 4,165,711 969,800 4,165,711 Parking District - - 137,930 171,705 137,930 171,705 Street Lighting - - 186,765 147,861 186,765 147,861 Wastewater - - 9,659,518 11,580,850 9,659,518 11,580,850 Water - - 8,179,199 6,196,274 8,179,199 6,196,274 Total expenses 24,869,535 25,040,044 40,549,371 43,410,525 65,418,906 68,450,569 Change in net position before transfers 10,250,929 2,543,263 (2,817,913) 18,176,823 7,433,016 20,720,086 Transfers (444,963) (510,543) 444,963 510,543 - - Change in net position 9,805,966 2,032,720 (2,372,950) 18,687,366 7,433,016 20,720,086 Net position - beginning 38,088,337 36,055,617 121,379,142 102,691,776 159,467,479 138,747,393 Net position - ending $ 47,894,303 $ 38,088,337 $ 119,006,192 $ 121,379,142 $ 166,900,495 $ 159,467,479 Governmental Activities Business-type Activities Total Governmental Activities Net expenses of $10.5 million for the provision of these governmental activities was funded by general revenues, primarily in the general fund, including taxes, licenses, permits, franchise fees, and rents. Public safety (police, fire, and emergency management services) comprised the largest activity segment of governmental expenses ($13.6 million, 60.32 percent). A significant portion of this expense is related to retirement benefit costs. Maintenance of streets and rights-of-way were the next largest expense of the City’s governmental activities. The City has deployed a significant portion of its discretionary and programmatic resources toward the improvement of City streets, walkways, and trails. Costs and programmatic revenues directly associated with governmental activities were as follows: Attachment 1 Page 646 of 858 City of Ukiah, California Financial Section: Required Supplementary Information | MD&A Page | 10 Functions/Programs Expenses % of Total Program Revenues % of Total Net (Expense) Revenue General government $ 1,117 0.00% $ 277,222 2.28% $ 276,105 Public safety 13,659,736 60.32% 1,122,946 9.24% (12,536,790) Housing and community development 1,460,134 6.45% 6,076,588 50.02% 4,616,454 Public works 2,039,558 9.01% 2,275,693 18.73% 236,135 Parks, buildings, and grounds 1,560,436 6.89% 360,184 2.96% (1,200,252) Recreation and culture 2,640,963 11.66% 1,786,120 14.70% (854,843) Economic development and redevelopment 290,261 1.28% 250,000 2.06% (40,261) Interest on long-term debt 992,902 4.38% - 0.00% (992,902) Total $ 22,645,107 100.00% $ 12,148,753 100.00% $ (10,496,354) City of Ukiah Expenses and Program Revenues Governmental Activities For the Year Ended June 30, 2020 Attachment 1 Page 647 of 858 City of Ukiah, California Financial Section: Required Supplementary Information | MD&A Page | 11 Significant revenues for the City came from taxes (59.4 percent), which included sales taxes (Bradley-Burns, Measure P and Measure Y transactions and use taxes), property taxes and transient occupancy taxes. Despite the continuation of the COVD-19 pandemic, tax revenues overall were higher than in the prior year due to increases to the sales and property tax base from a strong and diversified local economy. From highest to lowest, revenues directly associated with governmental collections were as follows. This information is presented in greater detail than that found on the Statement of Activities or Changes in Fund Balance to allow the reader to gain a more in-depth understanding of the sources and uses of revenue. City of Ukiah Revenues by Source Governmental Activities For the Year Ended June 30, 2021 Revenues Source Revenue % of Total Sales tax $ 15,535,021 44.23% Operating grants and contributions 7,890,530 22.47% Charges for services 3,487,098 9.93% Property tax 3,408,846 9.71% Franchises 1,815,271 5.17% Transient occupancy 1,367,852 3.89% Capital grants and contributions 771,125 2.20% Business license 560,527 1.60% Use of money and property 266,006 0.76% Other revenue 17,052 0.05% Other taxes 1,136 0.00% Total $ 35,120,464 100.01% Attachment 1 Page 648 of 858 City of Ukiah, California Financial Section: Required Supplementary Information | MD&A Page | 12 Business-type Activities In the fiscal year ended June 30, 2021, business-type activities decreased the City’s net position by $2.3 million. That loss came from net revenues, which is defined as total expenses minus program revenues, which include charges for service, as well as operating and capital grants and contributions. Funds Expenses % of Total Program Revenues % of Total Net (Expense) Revenue Airport $ 1,857,261 4.58% $ 1,946,228 5.21% $ 88,967 Ambulance Services 55,894 0.14% 79,891 0.21% 23,997 Conference Center (336,910)-0.83% 212,201 0.57% 549,111 Electric 19,695,234 48.57% 18,761,775 50.25% (933,459) Golf 144,680 0.36% 175,266 0.47% 30,586 Landfill 969,800 2.39% 716,223 1.92% (253,577) Parking District 137,930 0.34% 100,679 0.27% (37,251) Street Lighting 186,765 0.46% 183,278 0.49% (3,487) Wastewater 9,659,518 23.82% 7,935,941 21.25% (1,723,577) Water 8,179,199 20.17% 7,228,258 19.36% (950,941) Total $ 40,549,371 100.00% $ 37,339,740 100.00% $ (3,209,631) Expenses and Program Revenues Business-Type Activities For the Year Ended June 30, 2021 Attachment 1 Page 649 of 858 City of Ukiah, California Financial Section: Required Supplementary Information | MD&A Page | 13 General revenues for business-type activities include rents and interest earnings as well as some property taxes collected by the City’s parking district. The general revenues were down from the prior year approximately 50 percent resulting primarily from smaller returns on the City’s investment portfolio from less cash invested. Charges for services, however, was higher than the prior year due certain reimbursable jobs in the electric utility as well as increased rate revenue from the scheduled adjustment to water and sewer rates in October. Revenues by Source Business-Type Activities For the Year Ended June 30, 2021 Revenues Source Revenue % of Total Charges for services $ 36,024,011 95.47% Operating grants and contributions 759,696 2.01% Capital grants and contributions 556,033 1.47% Property tax 16,714 0.04% Use of money and property 352,781 0.93% Other revenue 22,223 0.06% Total $ 37,731,458 100.00% Attachment 1 Page 650 of 858 City of Ukiah, California Financial Section: Required Supplementary Information | MD&A Page | 14 Capital Assets and Debt Administration Capital Assets The City’s investment in capital assets for its governmental and business-type activities at June 30, 2021 totaled $236.5 million (net of accumulated depreciation). The investment in capital assets includes land, buildings and improvements, equipment, vehicles, infrastructure, and construction in progress. Depreciation expense for the year, government-wide, totaled $7.5 million. 2021 2020 2021 2020 2021 2020 Land $ 4,092,630 $ 2,705,812 $ 7,042,727 $ 6,932,722 $ 11,135,357 $ 9,638,534 Infrastructure and network 55,602,715 55,602,715 165,703,874 157,263,611 221,306,589 212,866,326 Buildings and improvements 21,862,814 21,860,720 63,283,228 63,440,511 85,146,042 85,301,231 Construction in progress 6,971,422 1,122,971 8,470,658 7,884,420 15,442,080 9,007,391 Machinery equipment and vehicles 10,045,491 11,642,531 13,562,385 14,898,769 23,607,876 26,541,300 Intangible assets - - 180,000 90,000 180,000 90,000 98,575,072 92,934,749 258,242,872 250,510,033 356,817,944 343,444,782 Less: accumulated depreciation (40,170,850) (39,858,777) (80,193,098) (76,581,792) (120,363,948) (116,440,569) Capital assets, net $ 58,404,222 $ 53,075,972 $ 178,049,776 $ 173,928,241 $ 236,453,996 $ 227,004,213 Comparative Statement of Capital Assets June 30, 2020 and 2021 Governmental Activities Business-type Activities Total Additional information on the City’s capital assets can be found in Note 6, along with the City’s capitalization policies in Note 1 in the notes to the basic financial statements. Reasons for the change in capital assets were engagement in major work on several construction projects, including work on the airport runway and several streets and rights-of-way. Long-Term Liabilities The City’s outstanding Noncurrent liabilities, including bonds, loans payable, the net pension liability and compensated absences totaled over $135 million as of June 30, 2021. The most significant obligation added this year were additions to the landfill closure, post closure, and corrective action plan, the engineering estimates for which were updated in 2019 and adjusted for inflation. However, a more accurate estimate of total landfill closure, post-closure, and corrective action costs will not be determined until contractor bids are received. 2021 2020 2021 2020 2021 2020 2017 CalTrans Aeronautics Loan - Airport -$ -$ 159,635$ 169,999$ 159,635$ 169,999$ 2016 Water Revenue Refunding Bonds - - 8,620,000 9,160,000 8,620,000 9,160,000 2016 unamortized premium - - 1,358,275 1,383,428 1,358,275 1,383,428 Lawsuit settlement liability - - 2,000,000 3,000,000 2,000,000 3,000,000 Landfill closure and post-closure - - 19,297,593 19,063,628 19,297,593 19,063,628 2017 SWRCB recycled water loan - - 18,238,738 16,778,411 18,238,738 16,778,411 Series 2020 Wastewater Refunding Bonds - - 23,620,000 25,010,000 23,620,000 25,010,000 2017 fire engine lease 763,396 869,798 - - 763,396 869,798 2017 computer equipment lease 58,280 116,418 - - 58,280 116,418 2017 I-Bank financing lease 3,751,776 3,837,218 - - 3,751,776 3,837,218 2020 fire brush truck equipment lease 207,216 227,606 - - 207,216 227,606 2020 fire self-contained breathing apparatus equipment 328,457 - - - 328,457 - Series 2020A Community Facilities Lease Revenue Bonds 2,380,000 - - - 2,380,000 - 2020A unamortized premium 351,130 - - - 351,130 - Series 2020B CalPERS Taxable Lease Revenue Bonds 32,426,592 - 17,448,408 - 49,875,000 - Claims payable 430,458 573,944 99,166 148,749 529,624 722,693 Net pension liability 38,156,746 36,143,162 18,895,630 17,210,447 57,052,376 53,353,609 Compensated absences 1,072,592 993,354 562,843 525,516 1,635,435 1,518,870 Total 79,926,642$ 42,761,500$ 110,300,288$ 92,450,178$ 190,226,930$ 135,211,678$ Activities Activities Total Long-term Obligations Two-Year Comparison Governmental Business-type Attachment 1 Page 651 of 858 City of Ukiah, California Financial Section: Required Supplementary Information | MD&A Page | 15 Additional information on the City’s outstanding long-term liabilities can be found in Note 7. Fund Financial Analysis The City employs fund accounting to ensure and demonstrate compliance with finance-related legal requirements. As was mentioned earlier, fund financial statements present information based on current financial resources and expenditures. Essentially, they are snapshots of the condition of major funds in the near- term; whereas, the government-wide statements present the entire picture of the reporting entity. The focus of the City’s governmental funds is to provide information on near-term inflows, outflows, and balances of spendable resources. Such information is useful in assessing the City’s financing requirements. For comparison purposes, fund statements correlate well to the City’s adopted budget. Governmental Funds As of June 30, 2021, the City’s governmental fund balance was $30.7 million. GASB 54 established five new criteria for categorizing that balance based on its restricted and unrestricted use. The five categories are the following: • Non-spendable fund balance • Restricted fund balance • Committed fund balance • Assigned fund balance • Unassigned fund balance. A more detailed discussion of these fund balance categories is presented in Note 1. General Fund Financial Condition The City’s General Fund is its primary source of discretionary resources for the provision of service deemed necessary and desirable by the citizens of Ukiah and the City Council. General fund revenues were up nearly $4.6 million from the year prior, driven by stronger than anticipated sales tax growth (even with the continuation of the COVID-19 pandemic) and the receipt of grant revenues. A diverse local economic base supports this growth. Similarly, total expenditures were higher by $2.2 million due mostly to lower capital outlays. After other financing sources and uses were accounted for, fund balance increased by $1.9 million. Other governmental funds reported a net increase in fund balance of $8.8 million, primarily influenced by an addition of $3.5 million of cash from bond proceeds refunding the City’s payment to CalPERS for its 2021 unfunded accrued liability payment. This amount was placed in a newly created fund as a reserve for future advanced prepayment of unfunded pension liabilities. These funds also include revenues from many federal, state and special district grants which vary greatly from year to year. Governmental funds reported $5.04 million in non-spendable fund balance at the end of the fiscal year. This is comprised of long-term interfund advances held by the General Fund as well as reinstatement of a loan receivable from the Ukiah Redevelopment Successor Agency. Attachment 1 Page 652 of 858 City of Ukiah, California Financial Section: Required Supplementary Information | MD&A Page | 16 The balance of $15.3 million in restricted fund balance - those financial resources can be spent only on specific activities as defined by outside entities (e.g. a grantor, state agency, statute, etc.) – is found in special revenue funds law enforcement, housing and streets, and infrastructure. Committed fund balance of $415 thousand consists primarily of several select capital projects earmarked by the City Council through resolution. $4.9 million in assigned fund balance consists of reserve amounts designated by management for future capital acquisition and specific projects, including maintaining a reserve for the advanced payment of pension liabilities. The remaining amount of $4.9 million of unassigned fund balance result primarily from general fund reserves and deferred revenues in several special revenue funds that have not been converted to revenues but are expected to in the following year. Additional information on deficit fund balances can be found in Note 2. Proprietary Funds Enterprise Fund - Landfill The net position of the landfill closure and post-closure fund increased $223 thousand from a negative 9.4 million to $9.2 million. Surcharge amounts collected at the Ukiah Transfer Station and transferred to the Landfill fund helped to bolster it in preparation for final closure and remediation activities forthcoming. Enterprise Fund - Electric The net position of the electric enterprise fund decreased $817 thousand primarily due to decreased pandemic-related rate revenue in commercial accounts. Operating expenses exceeded operating revenues by $757 thousand, driven by increased personnel costs related to market-based salary adjustments. Enterprise Fund - Water The net position of the water enterprise fund decreased $563 thousand primarily due to decreased pandemic- related rate revenue. Operating expenses nominally exceeded operating revenue while non-operating expenses, influenced by interest and fiscal costs, outpaced non-operating revenue. Enterprise Fund - Wastewater The net position of the wastewater enterprise fund decreased $1.9 million. Operating revenue was lower than operating expenses, resulting in an operating loss of $977 thousand. The change was influenced in large part by operating costs (notably insurance premium increases) that exceeded pandemic-related decreasing rate revenue. The adoption of rate adjustments in October 2020 helped to reduce the effect. Further, nonoperating expenses outpaced revenues by $1.6 million driven by interest and other fiscal charges. Budgetary Comparison A comparison of budget to actual for major governmental funds is presented in the fund financial statements. These statements and the notes are presented as additional information to show that appropriations are being spent as authorized by the City Council. Budgetary control for the City rests at the fund level. General Fund Attachment 1 Page 653 of 858 City of Ukiah, California Financial Section: Required Supplementary Information | MD&A Page | 17 The original budget estimated $20.2 million in revenues. It was increased to $26.6 in anticipation of grant revenues for capital projects. Revenues in the General Fund were $203 thousand higher than was budgeted primarily due to increased sales taxes. Additionally, property taxes received were higher than originally estimated due to adjustments to residual property tax increments passed to the City from the former Ukiah Redevelopment Agency. Expenditures were $1.7 million more than budget appropriations primarily due to various increased operating costs related to overtime and part-time personnel costs. They were offset by less than expected capital expenditures, resulting in total expenditures in the fund being $573 thousand more than expected. These costs were difficult to plan for as the City responded to the COVID-19 pandemic. Policy Resolution No. 39 (2013), passed the Ukiah City Council and incorporated in the City’s financial management policies, established an unrestricted fund balance of at least 25 percent of annual operating expenditures in the General Fund. Its purpose is to serve as a strategic reserve, ensuring liquidity of the General Fund and to make certain adequate resources are available to manage economic uncertainties. The General Fund ended the year with a fund balance (consisting of nonspendable, committed, and unassigned amounts) of $11.2 million, representing 52.5 percent of operating expenditures for the year. Variance with Original Final Actual Final Budget REVENUES Total revenues 20,207,269 26,636,208 26,839,114 202,906 EXPENDITURES Current: General government (235,895) (227,042) 60,132 (287,174) Public safety 11,906,160 12,125,672 12,701,313 (575,641) Housing and community development 968,815 1,142,970 1,044,627 98,343 Public works 1,246,454 1,639,473 1,487,609 151,864 Parks, buildings, and grounds 1,152,993 1,156,049 1,189,386 (33,337) Recreation and culture 1,584,385 1,582,533 2,435,717 (853,184) Economic development and redevelopment 99,923 99,923 256,392 (156,469) Total current 16,722,835 17,519,578 19,175,176 (1,655,598) Total debt service 304,780 304,780 300,874 3,906 Total capital outlay 682,000 2,956,754 1,877,910 1,078,844 Total expenditures 17,709,615 20,781,112 21,353,960 (572,848) Excess (deficiency) of revenues over expenditures 2,497,654 5,855,096 5,485,154 (369,942) OTHER FINANCING SOURCES (USES) Total other financing sources (uses) (2,497,653) (3,272,579) (3,558,932) (286,353) Net change in fund balances 1 2,582,517 1,926,222 (656,295) Fund balances - beginning 9,303,307 9,303,307 9,303,307 - Fund balances - ending $ 9,303,308 $ 11,885,824 $ 11,229,529 $ (656,295) Budgeted Amounts City of Ukiah General Fund Statement of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual For the Year Ended June 30, 2021 Attachment 1 Page 654 of 858 City of Ukiah, California Financial Section: Required Supplementary Information | MD&A Page | 18 Economic Outlook Despite the onset of the COVID-19 pandemic in March of 2020 and its subsequent effects, the City’s financial position remained stable to end the fiscal year. A diverse economic base serving as a hub for the greater geographic region around the city and Mendocino County was largely responsible. City management took a very conservative approach to revenue estimation when preparing the City’s 2021 budget and adjusted appropriations accordingly, particularly in the general fund, which resulted in positive financial outcomes for the general fund in particular. Management continued that approach into the fiscal year 2021-22. The following economic factors currently affect the City of Ukiah and were considered in developing the 2021-22 fiscal year budget. • Sales tax revenue and transient occupancy taxes were estimated to increase by marginal amounts respectively from the prior year due, even in considering the larger economic recessionary effects of the COVID-19 pandemic. General fund appropriations were nonetheless adjusted to continue to generate a budgetary surplus as a hedge against unexpected revenue shortfalls. • An increase in water and sewer rates beginning October 1, 2021 was approved by the City Council and went into effect for commercial and residential rate payers. This was in response to anticipated current and future expenditure increases in operating costs, capital outlays, and settlement payments to the Ukiah Valley Sanitation District. The adjustment to rates will continue each July 1 for the next 4 years. • Rate revenue in electric enterprise funds was estimated to be relatively unchanged from the year prior, which anticipated marginal increases in commercial accounts as the City’s businesses continue to adjust and recover from the economic effects of the pandemic. • A property tax rate increase of 2 percent to fund increases in recurring general fund obligations. • Implementation of increased rates on the City of Ukiah’s current fee schedule. • Interest rates in municipal financial markets are expected to remain at record low levels throughout fiscal year 2021-22. The City intends to continue efforts to restructure its outstanding debt obligations to take advantage of the current municipal lending environment. • On the expenditure side, regular increases are expected in health insurance premiums, as well as pension costs. • Departmental budgets were held to comparably amounts from 2020-21. • Contract adjustments with all City of Ukiah’s bargaining groups resulted in the advancement of the final cost of living adjustment from its previously scheduled implementation date. Maintaining and growing revenue streams to the City remains a high priority for staff. Existing sources – predominately sales and property taxes – are stable, and our estimates for the future will continue to be conservative. Expenses related to personnel (primarily in health premium and pension costs) are increasing at a substantial, though manageable, pace. We continue to look to find cost saving measures to help offset these expenses. The challenge remains providing the highest level and quality of service that the community needs, expects and deserves. Attachment 1 Page 655 of 858 City of Ukiah, California Financial Section: Required Supplementary Information | MD&A Page | 19 Requests for Information This Annual Comprehensive Financial Report is intended to provide citizens, taxpayers, investors, and creditors with a general overview of the City’s finances. Questions regarding this report, or request for additional information, should be made to the Finance Department, City of Ukiah, CA, 95482. Attachment 1 Page 656 of 858 City of Ukiah, California Financial Section: Basic Financial Statements Page | 20 Government-Wide Financial Statements The Statement of Net Position reports the difference between the City’s total assets and the City’s total liabilities, including all the City’s capital assets and all its long-term debt. The Statement of Net Position summarizes the financial position of all City Governmental Activities in a single column, and the financial position of all the City’s Business-Type Activities in a single column; these are followed by a total column which presents the financial position of the entire City. The City’s Governmental Activities include the activities of its General Fund, along with all its Special Revenue, Capital Projects and Debt Service Funds. The City’s Business-Type Activities include all its Enterprise Fund activities. The Statement of Activities reports increases and decreases in the City’s net position. It presents the City’s expenses first, listed by program, and follows these with the expenses of its business-type activities. Program revenues—that is, revenues which are generated directly by these programs—are then deducted from program expenses to arrive at the net expense of each governmental and business-type program. The City’s general revenues are then listed in the Governmental Activities or Business-type Activities column, as appropriate, and the Change in Net Position is computed and reconciled with the Statement of Net Position. Both these Statements include the financial activities of the City, the Ukiah Redevelopment Agency and the City of Ukiah Municipal Sewer District, which are legally separate but are component units of the City because they are controlled by the City, which is financially accountable for their activities. Attachment 1 Page 657 of 858 City of Ukiah, California Financial Section: Basic Financial Statements Page | 21 City of Ukiah, California Statement of Net Position June 30, 2021 Governmental Activities Business-type Activities Total ASSETS Cash and investments $ 15,763,095 $ 20,133,777 $ 35,896,872 Restricted cash and investments 2,864,287 - 2,864,287 Investment in NCPA reserves - 7,749,546 7,749,546 Accounts receivables (net allowance for uncollectibles) 6,252,963 7,680,913 13,933,876 Notes and loans receivable 121,175 - 121,175 Inventories and prepaids 207,097 1,430,648 1,637,745 Land held for resale 2,435,114 - 2,435,114 Internal balances 943,385 (943,385) - Noncurrent assets: Notes and loans receivable 11,868,777 5,500 11,874,277 Capital assets not being depreciated: Land 4,092,630 7,042,727 11,135,357 Construction in progress 6,971,422 8,470,658 15,442,080 Intangible assets - 180,000 180,000 Capital assets, net depreciation: Buildings and improvements 14,013,246 29,341,998 43,355,244 Infrastructure and network 29,801,312 127,499,366 157,300,678 Machinery equipment and vehicles 3,525,612 5,515,025 9,040,637 Total assets 98,860,115 214,106,773 312,966,888 DEFERRED OUTFLOWS OF RESOURCES Deferred outflow of resources related to pension 35,276,895 18,409,328 53,686,223 Total deferred outflows of resources 35,276,895 18,409,328 53,686,223 Total assets and deferred outflows of resources 134,137,010 232,516,101 366,653,111 LIABILITIES Accounts payable 3,998,603 2,232,794 6,231,397 Accrued payroll liabilities 1,241,136 650,835 1,891,971 Interest payable 639,990 311,375 951,365 Deposits payable - 5,724 5,724 Noncurrent liabilities: Due within one year 1,124,841 3,914,868 5,039,709 Due in more than one year 78,801,801 106,385,420 185,187,221 Total liabilities 85,806,371 113,501,016 199,307,387 DEFERRED INFLOWS OF RESOURCES Deferred inflow of resources related to pension 436,336 8,893 445,229 Total deferred inflows of resources 436,336 8,893 445,229 Total liabilites and deferred inflows of resources 86,242,707 113,509,909 199,752,616 NET POSITION Net investment in capital assets 50,915,097 126,053,127 176,968,224 Restricted for: Housing and community development 13,749,628 - 13,749,628 NCPA Projects - 251,126 251,126 Parks and recreation: Expendable 8,460 - 8,460 Nonexpendable 137,576 - 137,576 Public safety 920,250 - 920,250 Public works 668,822 - 668,822 Unrestricted (18,505,530) (7,298,061) (25,803,591) Total net position $ 47,894,303 $ 119,006,192 $ 166,900,495 The accompanying notes are an integral part of these financial statements. Primary Government Attachment 1 Page 658 of 858 City of Ukiah, California Financial Section: Basic Financial Statements Page | 22 City of Ukiah, California Statement of Activities For the Fiscal Year Ended June 30, 2021 Functions/Programs Expenses Charges for Services Operating Grants and Contributions Capital Grants and Contributions Governmental Activities Business-type Activities Total Primary government: Governmental activities: General government $ 838,727 $ 78,607 $ 198,615 $ - $ (561,505) $ - $ (561,505) Public safety 13,659,736 326,986 452,197 343,763 (12,536,790) - (12,536,790) Housing and community development 1,460,134 573,410 5,503,178 - 4,616,454 - 4,616,454 Public works 3,426,376 542,554 1,604,792 128,347 (1,150,683) - (1,150,683) Parks, buildings, and grounds 1,560,436 60,400 769 299,015 (1,200,252) - (1,200,252) Recreation and culture 2,640,963 1,655,141 130,979 - (854,843) - (854,843) Economic development and redevelopment 290,261 250,000 - - (40,261) - (40,261) Interest on long-term debt 992,902 - - - (992,902) - (992,902) Total governmental activities 24,869,535 3,487,098 7,890,530 771,125 (12,720,782) - (12,720,782) Business-type activities: Airport 1,857,261 1,390,195 - 556,033 - 88,967 88,967 Ambulance Services 55,894 79,891 - - - 23,997 23,997 Conference Center (336,910) 210,000 2,201 - - 549,111 549,111 Electric 19,695,234 18,141,046 620,729 - - (933,459) (933,459) Golf 144,680 38,500 136,766 - - 30,586 30,586 Landfill 969,800 716,223 - - - (253,577) (253,577) Parking District 137,930 100,679 - - - (37,251) (37,251) Street Lighting 186,765 183,278 - - - (3,487) (3,487) Wastewater 9,659,518 7,935,941 - - - (1,723,577) (1,723,577) Water 8,179,199 7,228,258 - - - (950,941) (950,941) Total business-type activities 40,549,371 36,024,011 759,696 556,033 - (3,209,631) (3,209,631) Total primary government $ 65,418,906 $ 39,511,109 $ 8,650,226 $ 1,327,158 (12,720,782) (3,209,631) (15,930,413) 3,408,846 16,714 3,425,560 15,535,021 - 15,535,021 1,815,271 - 1,815,271 1,367,852 - 1,367,852 560,527 - 560,527 1,136 - 1,136 266,006 352,781 618,787 17,052 22,223 39,275 (444,963) 444,963 - 22,526,748 836,681 23,363,429 9,805,966 (2,372,950) 7,433,016 38,088,337 121,379,142 159,467,479 $ 47,894,303 $ 119,006,192 $ 166,900,495 Total general revenues, special items, and transfers Change in net position Net position - beginning Net position - ending The accompanying notes are an integral part of these financial statements. Transfers Program Revenues Primary Government General revenues: Property tax Sales tax Franchise fees Transient occupancy Business license Other taxes Use of money and property Other revenue Net (Expense) Revenue and Changes in Net Position Attachment 1 Page 659 of 858 City of Ukiah, California Financial Section: Basic Financial Statements Page | 23 Fund Financial Statements Major funds are defined generally as having significant activities or balances in the current year. The funds described below were determined to be Major Governmental Funds by the City for fiscal 2021. Individual nonmajor funds may be found in the Supplemental section. Governmental Funds General Fund The General Fund is used for all the general revenues of the City not specifically levied or collected for other City funds, and the related expenditures. The major revenue sources for this Fund are property taxes, sales taxes, franchise fees, business licenses, unrestricted revenues from the state, fines and forfeitures and interest income. Expenditures are made for community development, public safety, public works, and other services. Streets Capital Improvement This capital project fund accounts for street and right-of-way capital projects supported primarily by Measure Y resources, committed by the City Council through resolution. Pension Debt Service This debt service fund was created in 2021 to account for resources accumulated, used, and reserved for the retirement of lease revenue bonds. HOME Program Income The HOME Program Income Fund is a special revenue fund used to account for resources accumulated and held resulting from current and prior HOME program Grant activities. . Attachment 1 Page 660 of 858 City of Ukiah, California Financial Section: Basic Financial Statements Page | 24 City of Ukiah, California Balance Sheet Governmental Funds June 30, 2021 General Fund Home Program Income Streets Capital Improvements Pension Debt Service Total Nonmajor Funds Total Governmental Funds ASSETS Cash and investments $ 3,596,165 $ 1,078,591 $ 508,606 $ 3,488,664 $ 5,720,644 $ 14,392,670 Restricted cash and investments - - - 5,316 8,971 14,287 Accounts receivable 1,663,429 32,874 - - 170,954 1,867,257 Taxes receivable 2,898,954 - - - - 2,898,954 Notes receivable 3,924 8,159,796 - - 1,705,057 9,868,777 Interest receivable 1,915 280 - 1,747 1,847 5,789 Grants and subventions receivable 910,106 186,375 - - 235,569 1,332,050 Inventories and prepaids 207,097 - - - - 207,097 Due from other funds 678,260 - - - - 678,260 Advances to other funds 2,013,542 - - - - 2,013,542 Land held for resale - - - - 2,435,114 2,435,114 Advance to Successor Agency 2,000,000 - - - - 2,000,000 Due from other agencies 121,175 - - - - 121,175 Total assets $ 14,094,567 $ 9,457,916 $ 508,606 $ 3,495,727 $ 10,278,156 $ 37,834,972 LIABILITIES Accounts payable $ 1,069,402 $ 1,080,805 $ 1,057,005 $ - $ 488,874 $ 3,696,086 Accrued payroll liabilities 885,530 - 6,990 - 11,783 904,303 Due to other funds - - - - 230,760 230,760 Advance from other funds - - - - 332,611 332,611 Total liabilities 1,954,932 1,080,805 1,063,995 - 1,064,028 5,163,760 DEFERRED INFLOWS OF RESOURCES Unavailable revenues - grants and subventions 910,106 863,907 - - 243,498 2,017,511 Total deferred inflow of resources 910,106 863,907 - - 243,498 2,017,511 Total liabilities and deferred inflows of resources 2,865,038 1,944,712 1,063,995 - 1,307,526 7,181,271 FUND BALANCES (DEFICITS) Nonspendable: Interfund loans 2,013,542 - - - - 2,013,542 Inventories and prepaids 207,097 - - - - 207,097 Notes receivable 2,003,924 - - - - 2,003,924 Riparian corridor management - - - - 137,576 137,576 Restricted: CDBG activities - - - - 461,071 461,071 Certifications and training - - - - 50,371 50,371 Federal stimulus - - - - 468 468 Housing activities - 7,513,204 - - 5,724,514 13,237,718 Project reserve - - - - 14,664 14,664 Public safety - - - - 920,250 920,250 Riparian corridor management - - - - 8,460 8,460 Streets and rights-of-way - - - - 654,158 654,158 Committed: Park development - - - - 42,204 42,204 Planning activities - - - - 296,641 296,641 Solid waste management - - - - 76,789 76,789 Assigned: Capital projects - - - - 35,420 35,420 Economic development 186,134 - - - - 186,134 Equipment reserve - - - - 380,569 380,569 Park Development - - - - 6,033 6,033 Pension reserve - - - 3,495,727 - 3,495,727 Project reserve - - - - 888,617 888,617 Unassigned: 6,818,832 - (555,389) - (727,175) 5,536,268 Total fund balances (deficits) $ 11,229,529 $ 7,513,204 $ (555,389) $ 3,495,727 $ 8,970,630 $ 30,653,701 Total liabilities and fund balances (deficits) $ 14,094,567 $ 9,457,916 $ 508,606 $ 3,495,727 $ 10,278,156 $ 37,834,972 The accompanying notes are an integral part of these financial statements. Attachment 1 Page 661 of 858 City of Ukiah, California Financial Section: Basic Financial Statements Page | 25 City of Ukiah, California Reconciliation of the Governmental Funds Balance Sheet to the Statement of Net Position For the Fiscal Year Ended June 30, 2021 $30,653,701 95,620,194 (39,449,881) 56,170,313 (885,429) (38,156,746) (763,396) (3,751,776) (207,216) (328,457) (32,426,592) (76,519,612) 35,276,895 (436,336) 34,840,559 1,348,935 1,348,935 (617,104) (617,104) 2,017,511 2,017,511 $47,894,303 Fund balances of governmental funds Amounts reported for governmental activities in the statement of net position are different because: Capital assets used in governmental activities are not financial resources and therefore, are not reported in the funds: Capital assets Accumulated depreciation Long-term liabilities are not due and payable in the current period and therefore are not reported in the funds: The assets and liabilities of the internal service funds are included in governmental activities in the statement of net position. Compensated absences Net pension liability 2017 fire engine lease 2017 I-Bank financing lease 2020 Fire brush truck Fire aparatus Accrued interest on long-term debt is not due and payable in the current period and is not reported in the funds. Long-term assets are not available for current use. Amounts are unavailable under the modified accrual basis of accounting. Net position of governmental activities 2020B CalPERS Taxable Lease Revenue Bonds Amounts for deferred inflows and deferred outflows related to the City's Net Pension Liability are not reported in the funds: Deferred outflows - pension related items Deferred inflows - pension related items Internal service funds are used by management to charge the costs of certain activities, such as insurance and vehicle maintenance, to individual funds. Attachment 1 Page 662 of 858 City of Ukiah, California Financial Section: Basic Financial Statements Page | 26 City of Ukiah, California Statement of Revenues, Expenditures, and Changes in Fund Balances Governmental Funds For the Fiscal Year Ended June 30, 2021 General Fund Home Program Income Streets Capital Improvements Pension Debt Service Total Nonmajor Funds Total Governmental Funds REVENUES Property tax $ 3,408,846 $ - $ - $ - $ - $ 3,408,846 Sales tax 15,535,021 - - - - 15,535,021 Transient occupancy 1,362,134 - - - - 1,362,134 Business license tax 484,533 - - - 25,270 509,803 Other taxes 1,136 - - - - 1,136 Franchise fees 1,815,271 - - - - 1,815,271 Charges for service 2,434,204 - - - 70,934 2,505,138 Licenses and permits 276,752 - - - - 276,752 Grants contributions and donations 1,226,237 - 96,284 - 370,990 1,693,511 Use of money and property 52,427 147,587 270 (9,588) 732,114 922,810 Intergovernmental 77,668 4,783,983 - - 1,174,603 6,036,254 Fines penalties and forfeitures 25,933 - - - - 25,933 Interest, rent, and concessions - 28,216 - - (372) 27,844 Miscellaneous 138,952 - - - 20,004 158,956 Total revenues 26,839,114 4,959,786 96,554 (9,588) 2,393,543 34,279,409 EXPENDITURES Current: General government 60,132 - - 28,366,430 2,483 28,429,045 Public safety 12,701,313 - - - 785,114 13,486,427 Housing and community development 1,044,627 218,723 - - 196,784 1,460,134 Public works 1,487,609 - 168,999 - 75,843 1,732,451 Parks, buildings, and grounds 1,189,386 - - - 880 1,190,266 Recreation and culture 2,435,717 - - - 81,656 2,517,373 Economic development and redevelopment 256,392 - - - 33,869 290,261 Debt service: Interest 90,242 - 46,488 - 2,340 139,070 Cost of issuance - - - 554,846 - 554,846 Principal 56,392 - 29,050 - - 85,442 Capital lease principal 127,291 - - - - 127,291 Capital lease interest 26,949 - - - - 26,949 Capital outlay: Public safety 65,051 - - - 14,300 79,351 Public works 1,812,859 - 2,687,602 - 1,133,087 5,633,548 Recreation and culture - - - - 63,302 63,302 Total expenditures 21,353,960 218,723 2,932,139 28,921,276 2,389,658 55,815,756 Excess (deficiency) of revenues over expenditures 5,485,154 4,741,063 (2,835,585) (28,930,864) 3,885 (21,536,347) OTHER FINANCING SOURCES (USES) Transfers in 129,001 - 3,662,605 - 478,156 4,269,762 Transfers out (3,687,933) - (478,156) - (548,635) (4,714,724) Issuance of debt - - - 32,426,591 343,763 32,770,354 Total other financing sources (uses) (3,558,932) - 3,184,449 32,426,591 273,284 32,325,392 Net change in fund balances 1,926,222 4,741,063 348,864 3,495,727 277,169 10,789,045 Fund balances - beginning 9,303,307 2,772,141 (904,253) - 8,693,461 19,864,656 Fund balances - ending $11,229,529 $ 7,513,204 $ (555,389) $ 3,495,727 $ 8,970,630 $30,653,701 The accompanying notes are an integral part of these financial statements. Attachment 1 Page 663 of 858 City of Ukiah, California Financial Section: Basic Financial Statements Page | 27 City of Ukiah, California Reconciliation of the Governmental Funds Statement of Revenues, Expenditures, and Changes in Fund Balances to the Statement of Activities For the Fiscal Year Ended June 30, 2021 $10,789,045 5,776,202 (2,041,122) 899,161 4,634,241 (2,013,584) (80,994) (2,094,578) 28,490,867 378,320 28,869,187 227,540 (32,426,591) (343,763) (32,542,814) 497,291 (548,690) 202,284 $9,805,966 Changes to deferred inflows: pension-related items Net change in fund balances - total governmental funds Amounts reported for governmental activities in the statement of net position are different because: Governmental funds report capital outlays as expenditures. However, in the Statement of Activities the cost of these assets is allocated over their estimated useful lives as depreciation expense. Capital outlay Depreciation expense Gain on disposal of assets The amounts below included in the Statement of Activities do not provide (require) the use of current financial resources and, therefore, are not reported as revenues or expenditures in governmental funds (net change): Change to net pension liability Compensated absence expense Amounts for deferred inflows and deferred outflows related to the City's Net Pension Liability are not reported in the funds. This is the net change in deferred inflows and deferred outflows related to the net pension liability: Changes to deferred outflows: pension-related items Internal service funds are used by management to charge the costs of certain activities, such as insurance and vehicle maintenance, to individual funds. The net revenue (expense) of the internal services funds is reported with governmental activities. Change in net position of governmental activities The accompanying notes are an integral part of these financial statements. The issuance of long-term debt provides current financial resources to governmental funds, while the repayment of principal of long-term debt consumes the current financial resources of governmnetal funds. Neither transaction, however, has any effect on net position. Also, government funds report the effect of premiums, discounts and similar items when debt is first issued, whereas these amounts are deferred and amortized in the Statement of Activities. The effect of these differences are as follows: Principal paid on loans and capital leases Issuance of loan Issuance of capital lease Some revenues reported in the Statement of Activities are not considered available to finance current expenditures and, therefore, are not reported as revenues in the governmental funds. Accrued interest for long-term debt. This is the net change in accrued interest for the current period. Attachment 1 Page 664 of 858 City of Ukiah, California Financial Section: Basic Financial Statements Page | 28 Proprietary Funds Proprietary funds account for City operations financed and operated in a manner like a private business enterprise. The intent of the City is that the cost of providing goods and services be financed primarily through user charges. The City maintains four primary enterprise funds: electric, water, sewer, and landfill. Landfill This is the fund used to account for activities related to the closure, post-closure, and corrective action plan of the City of Ukiah landfill. Electric Enterprise Fund The Electric Utility provides electrical services to the citizens of Ukiah, including 24-hour, 365-day response to emergency service calls for customer power problems, and outages. Additionally, the enterprise is responsible for making high voltage power lines safe for Fire & Police personnel at structure fires, automobile accidents and to make other situations where electric lines are near emergency crews. Water Enterprise Fund Chapter 13.04 of the Ukiah Municipal Code provides the authority for City to operate water system. Revenues (fees and charges) are collected to pay for service (water) received. Sewer Enterprise Fund Chapter 13.20 of the Ukiah Municipal Code provides the authority for the City to operate sewer system. Revenues (fees and charges) are collected to pay for availability of collection, transportation, treatment, and disposal system. In addition, grazing lease payments, LACOSAN payments for flows, tax revenues, FEMA storm damage reimbursement, OES storm damage reimbursement, and insurance rebates have been credited to this fund. The City also employs the use of internal service funds. Internal Service Funds Established to account for the costs of activities primarily serving multiple department and funds. Such funds may also provide services to external users, such as other governmental entities. Attachment 1 Page 665 of 858 City of Ukiah, California Financial Section: Basic Financial Statements Page | 29 City of Ukiah, California Statement of Net Position Proprietary Funds June 30, 2021 Governmental Activities Landfill Electric Water Wastewater Total Nonmajor Funds Total Enterprise Funds Internal Service Funds ASSETS Current assets: Cash and investments $ 9,650,782 $ 305,884 $ 5,560,508 $ 3,620,429 $ 158,008 $ 19,295,611 $ 2,208,590 Investment in NCPA Reserves - 7,749,546 - - - 7,749,546 - Restricted cash and investments - - - - - - 2,850,000 Accounts receivable 106,075 3,672,638 1,647,070 1,525,769 62,400 7,013,952 148,911 Interest receivable 2,409 1,185 2,210 1,970 (91) 7,683 - Grants and subventions receivable - - - - 659,279 659,279 - Inventories and prepaids - 1,310,112 102,516 18,020 - 1,430,648 - Total current assets 9,759,266 13,039,365 7,312,304 5,166,188 879,596 36,156,719 5,207,501 Noncurrent assets: Notes receivable - - - - 5,500 5,500 - Advances to other funds - 186,270 - - 716,578 902,848 545,045 Intangible assets - - 180,000 - - 180,000 - Land 699,654 1,963,436 1,915,344 670,431 1,793,862 7,042,727 762,562 Construction in progress 139,776 1,618,104 3,677,462 2,206,555 828,761 8,470,658 676,013 Infrastructure and network - 25,582,658 45,571,415 87,712,780 6,837,023 165,703,876 - Buildings and improvements 26,700 26,270,859 22,271,536 10,328,621 4,385,511 63,283,227 516,596 Machinery equipment and vehicles 504,796 5,272,186 3,069,291 3,817,431 762,013 13,425,717 1,136,373 Less accumulated depreciation (415,351) (31,327,811) (15,188,256) (28,544,751) (4,580,262) (80,056,431) (857,634) Total noncurrent assets 955,575 29,565,702 61,496,792 76,191,067 10,748,986 178,958,122 2,778,955 Total assets 10,714,841 42,605,067 68,809,096 81,357,255 11,628,582 215,114,841 7,986,456 DEFERRED OUTFLOWS OF RESOURCES Deferred outflow of resources related to pension 551,351 7,225,603 4,257,012 4,680,682 1,694,680 18,409,328 - Total deferred outflows of resources 551,351 7,225,603 4,257,012 4,680,682 1,694,680 18,409,328 - Total assets and deferred outflows of resources $ 11,266,192 $ 49,830,670 $ 73,066,108 $ 86,037,937 $ 13,323,262 $ 233,524,169 $ 7,986,456 LIABILITIES Current liabilities: Accounts payable 22,231 458,581 899,003 449,453 355,215 2,184,483 350,829 Accrued payroll liabilities 10,564 152,524 259,407 95,348 26,124 543,967 443,701 Due to other funds - - - - 447,500 447,500 - Deposits payable - - - - 5,724 5,724 - Interest payable - - 124,209 185,771 1,395 311,375 22,886 Compensated absences - current 1,602 23,021 11,502 11,433 3,979 51,537 23,457 Long-term obligations - current 7,289 93,448 1,174,913 2,503,068 30,287 3,809,005 341,349 Total current liabilities 41,686 727,574 2,469,034 3,245,073 870,224 7,353,591 1,182,222 Noncurrent liabilities: Claims payable - - - - - - 336,555 Advance from other funds - - 716,578 - 1,227,201 1,943,779 1,185,045 Installment obligations 508,399 6,517,492 31,230,319 26,861,670 1,518,171 66,636,051 - Settlement liability - - - 1,000,000 - 1,000,000 - Landfill closure/post-closure 19,297,593 - - - - 19,297,593 - Net pension liability 565,916 7,416,475 4,369,465 4,804,327 1,739,447 18,895,630 - Compensated absences 14,423 207,193 103,535 102,902 35,821 463,874 211,138 Due in more than one year - - - - - - 2,641,128 Total noncurrent liabilities 20,386,331 14,141,160 36,419,897 32,768,899 4,520,640 108,236,927 4,373,866 Total liabilities 20,428,017 14,868,734 38,888,931 36,013,972 5,390,864 115,590,518 5,556,088 DEFERRED INFLOWS OF RESOURCES Deferred inflow of resources related to pension 266 3,491 2,057 2,261 818 8,893 - Total deferred inflows of resources 266 3,491 2,057 2,261 818 8,893 - Total liabilities and deferred inflows of resources 20,428,283 14,872,225 38,890,988 36,016,233 5,391,682 115,599,411 5,556,088 NET POSITION Net investment in capital assets 955,575 29,379,433 33,279,779 52,571,067 9,867,273 126,053,127 2,233,910 Restricted for: NCPA Projects - 251,126 - - - 251,126 - Unrestricted (10,117,666) 5,327,886 895,341 (2,549,363) (1,935,693) (8,379,495) 196,458 Total net position $ (9,162,091) $ 34,958,445 $ 34,175,120 $ 50,021,704 $ 7,931,580 117,924,758 $ 2,430,368 1,081,435 $ 119,006,193 Business-type Activities Difference between business-type adjustments to assets and liabilities. Net position of business-type activities The accompanying notes are an integral part of these financial statements. Attachment 1 Page 666 of 858 City of Ukiah, California Financial Section: Basic Financial Statements Page | 30 City of Ukiah, California Statement of Revenues, Expenses, and Changes in Net Position Proprietary Funds For the Fiscal Year Ended June 30, 2021 Governmental Activities Landfill Electric Water Wastewater Total Nonmajor Funds Total Enterprise Funds Internal Service Funds OPERATING REVENUES Charges for service $ 707,689 $ 18,141,046 $ 7,223,708 $ 7,303,080 $ 330,217 $ 33,705,740 $ 13,571,439 Licenses and permits - - - - 26,748 26,748 - Cap and trade - 618,246 - - - 618,246 - Fines penalties and forfeitures - - - - 39,717 39,717 - Facility rental 8,534 - - - 626,993 635,527 - Fuel sales - - - - 975,786 975,786 - Miscellaneous - - 26,523 - 3,082 29,605 145 Connection fees - - - 617,861 - 617,861 - Total operating revenues 716,223 18,759,292 7,250,231 7,920,941 2,002,543 36,649,230 13,571,584 OPERATING EXPENSES General and administrative 178,832 2,566,491 1,056,635 1,380,025 328,621 5,510,604 1,865,520 Maintenance and operations 768,889 15,641,579 4,597,956 5,354,833 993,121 27,356,378 11,750,775 Fuel - - - - 522,388 522,388 - Depreciation 13,271 1,308,285 1,668,204 2,163,462 175,104 5,328,326 109,873 Total operating expenses 960,992 19,516,355 7,322,795 8,898,320 2,019,234 38,717,696 13,726,168 Operating income (loss) (244,769) (757,063) (72,564) (977,379) (16,691) (2,068,466) (154,584) NONOPERATING REVENUES (EXPENSES) Property tax - - - - 16,714 16,714 - Intergovernmental - 2,483 - - 138,967 141,450 72,961 Interest, rent, and concessions 48,358 123,643 24,474 23,172 117,738 337,385 6,909 Miscellaneous - - 250 15,000 - 15,250 - Interest expense and fiscal charges - - (789,286) (679,640) (3,830) (1,472,756) (81,923) Gain on sale of property - 13,655 870 870 - 15,395 - Total nonoperating revenues (expenses) 48,358 139,781 (763,692) (640,598) 269,589 (946,562) (2,053) Income (loss) before contributions and transfers (196,411) (617,282) (836,256) (1,617,977) 252,898 (3,015,028) (156,637) Capital contributions - - - - 556,033 556,033 - Transfers in 419,635 - 273,375 - 225,328 918,338 - Transfers out - (200,000) - (273,375) - (473,375) - Change in net position 223,224 (817,282) (562,881) (1,891,352) 1,034,259 (2,014,032) (156,637) Total net position - beginning (9,385,315) 35,775,727 34,738,001 51,913,056 6,897,321 119,938,790 2,587,005 Total net position - ending $ (9,162,091) $ 34,958,445 $ 34,175,120 $ 50,021,704 $ 7,931,580 $ 117,924,758 $ 2,430,368 (358,919) $ (2,372,951) Business-type Activities Adjustment to reflect the consolidation of internal service fund activities related to enterprise Changes in net position of business-type activities The accompanying notes are an integral part of these financial statements. Attachment 1 Page 667 of 858 City of Ukiah, California Financial Section: Basic Financial Statements Page | 31 City of Ukiah, California Statement of Cash Flows Proprietary Funds For the Fiscal Year Ended June 30, 2021 Governmental Activities Landfill Electric Water Wastewater Total Nonmajor Enterprises Funds Total Enterprise Funds Internal Service Funds CASH FLOWS FROM OPERATING ACTIVITIES Cash receipts from customers $ 715,060 $ 18,242,276 $ 6,925,691 $ 7,649,922 $ 1,996,523 $ 35,529,472 $ 164,458 Receipts from interfund services provided - - - - - - 8,572,913 Payments to employees (720,972) (10,168,768) (6,260,579) (6,909,197) (1,952,809) (26,012,325) (6,564,145) Payments to suppliers (251,529) (11,656,710) (1,260,486) (1,947,694) (3,429,121) (18,545,540) (4,940,838) Payments for interfund services used (178,832) (2,566,491) (1,056,635) (1,380,025) (328,621) (5,510,604) 2,835,495 Other operating cash receipts (payments) - (147,302) - - - (147,302) 1,370 Net cash provided (used) by operating activities (436,273) (6,296,995) (1,652,009) (2,586,994) (3,714,028) (14,686,299) 69,253 CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES Principal payments received on loans receivable - - - - 6,500 6,500 - Cash received (paid) to other funds 419,635 10,378 (445,751) (273,375) 783,749 494,636 2,027,886 Property taxes received - - - - 16,714 16,714 - Lawsuit settlement payments - - - (1,090,000) - (1,090,000) - Grants and contributions - 2,483 - - 2,201 4,684 72,961 Proceeds from pension bonds 515,688 6,610,940 4,188,219 4,744,738 1,388,824 17,448,409 - Net cash provided (used) by noncapital financing activities 935,323 6,623,801 3,742,468 3,381,363 2,197,988 16,880,943 2,100,847 CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Capital grants and contributions - - 924,899 - 2,494,718 3,419,617 - Proceeds from capital loans - - 1,460,327 - - 1,460,327 2,791,128 Interest paid - - (662,926) (608,222) (3,962) (1,275,110) (63,257) Principal paid on capital and related debt - - (540,000) (1,390,000) (10,410) (1,940,410) (117,025) Acquisition and construction of capital assets (139,776) (3,795,772) (3,175,076) (1,344,371) (1,231,971) (9,686,966) (774,210) Proceeds from sale of property - 13,655 1,120 15,870 - 30,645 - Net cash provided (used) by capital and related financing activities (139,776) (3,782,117) (1,991,656) (3,326,723) 1,248,375 (7,991,897) 1,836,636 CASH FLOWS FROM INVESTING ACTIVITIES Interest received 60,527 131,428 31,514 33,590 2,015 259,074 10,686 Net cash provided (used) by investing activities 60,527 131,428 31,514 33,590 2,015 259,074 10,686 Net increase (decrease) in cash and cash equivalents 419,801 (3,323,883) 130,317 (2,498,764) (265,650) (5,538,179) 4,017,422 Balances - beginning of year 9,230,981 11,379,313 5,430,191 6,119,193 423,658 32,583,336 1,041,168 Balances - end of the year $ 9,650,782 $ 8,055,430 $ 5,560,508 $ 3,620,429 $ 158,008 $ 27,045,157 $ 5,058,590 Reconciliation of operating income (loss) to net cash provided (used) by operating activities: Operating Income $ (244,769) $ (757,063) $ (72,564) $ (977,379) $ (16,691) $ (2,068,466) $ (154,584) Adjustments to reconcile operating income (loss) to net cash provided (used) by operating activities: Depreciation 13,271 1,308,285 1,668,204 2,163,462 175,104 5,328,326 109,873 Changes in assets and liabilities: Decrease (increase) in accounts receivable (1,163) (517,016) (302,723) (243,170) (6,019) (1,070,091) (131,827) Decrease (increase) in prepaids - (1) 3,730 (1) - 3,728 - Decrease (increase) in inventory - 19,339 (7,815) 453 - 11,977 - Decrease (increase) in deferred outflows (473,107) (6,174,488) (3,688,939) (4,080,453) (1,419,933) (15,836,920) - Increase (decrease) in accounts payable (1,595) (484,521) 218,786 (176,259) (2,307,683) (2,751,272) 274,111 Increase (decrease) in accrued salaries and benefits 2,355 2,096 4,189 (6,983) (6,901) (5,244) 168,350 Increase (decrease) in compensated absences 149 27,294 12,884 4,482 (5,637) 39,172 (3,601) Increase (decrease) in deferrred inflows (7,811) (105,015) (56,585) (59,702) (27,544) (256,657) - Increase (decrease) in net pension liability 42,432 384,095 568,824 788,556 (98,724) 1,685,183 - Increase (decrease) in landfill liability 233,965 - - - - 233,965 - Increase (decrease) in claims payable - - - - - - (193,069) Net cash provided (used) by operating activities $ (436,273) $ (6,296,995) $ (1,652,009) $ (2,586,994) $ (3,714,028) $ (14,686,299) $ 69,253 Noncash investing, capital and financing activities Amortization related to long-term debt $ - $ - $ 25,153 $ - $ - $ 25,153 $ - Acquistion of capital assets on account - - (20,634) - - (20,634) - Total noncash investing, capital and financing activities $ - $ - $ 4,519 $ - $ - $ 4,519 $ - Business-type Activities - Enterprise Funds Attachment 1 Page 668 of 858 City of Ukiah, California Financial Section: Basic Financial Statements Page | 32 Fiduciary Funds These funds account for assets held by the City as an agent for individuals, private organizations, and other governments. The financial activities of these funds are excluded from the Government-wide financial statements but are presented in the separate Fiduciary Fund financial statements. PRIVATE PURPOSE TRUST FUND Redevelopment Non-Housing Housing Successor Private Purpose Trust Fund Resources held for the benefit of the state from the dissolution of the Ukiah Redevelopment Agency’s non- housing functions. CUSTODIAL FUNDS The City accounts for activities on behalf of external entities, including other governments. Attachment 1 Page 669 of 858 City of Ukiah, California Financial Section: Basic Financial Statements Page | 33 City of Ukiah, California Statement of Fiduciary Net Position Fiduciary Funds June 30, 2021 Private-Purpose Trust Funds Custodial Funds ASSETS Cash and investments $ 6,698,578 $ 1,895,559 Restricted cash and investments 23 - Accounts receivable - 321,383 Interest receivable 1,595 208 Land held for resale 5,443 - Total assets 6,705,639 2,217,150 LIABILITIES Accounts payable $ - $ 316,518 Accrued payroll liabilities 440 69,244 Deposits payable - 1,042,249 Interest payable 9,845 - Due to other agencies - 315,810 Intergovernmental payable - 34,904 Due to City of Ukiah - 551,425 Advances from City of Ukiah 2,000,000 - Due in more than one year 4,863,469 - Total liabilities 6,873,754 2,330,150 DEFERRED INFLOWS OF RESOURCES Total deferred inflows of resources - - Total liabilities and deferred inflows of resources 6,873,754 2,330,150 NET POSITION Restricted for: Held for the benefit of the state (168,115) - Individuals, Organizations and Other Governments - (112,998) Total net position $ (168,115) $ (112,998) The accompanying notes are an integral part of these financial statements. Attachment 1 Page 670 of 858 City of Ukiah, California Financial Section: Basic Financial Statements Page | 34 City of Ukiah, California Statement of Changes in Fiduciary Net Position Fiduciary Activities For the Fiscal Year Ended June 30, 2021 Private-Purpose Trust Funds Custodial Funds ADDITIONS Contributions: Grants contributions and donations $ - $ 395,189 Taxes and assessments collected for other governments 1,523,119 1,169,487 Service charges collected for other governments - 304,300 Service charges collected for other agencies - 1,471,242 Intergovernmental - 60,390 Miscellaneous - 6,892 Members - 537,958 Total contributions 1,523,119 3,945,458 Investment earnings: Interest, rent, and concessions 25,104 8,991 Total investment earnings 25,104 8,991 Net investment earnings 25,104 8,991 Revenues Total revenues - - Total additions 1,548,223 3,954,449 DEDUCTIONS General and administrative 250,000 312,329 Maintenance and operations 23,421 104,855 Interest expense and fiscal charges 211,130 75,212 Distributions to other governments - 3,173,654 Payments to other agencies for service charges collected - 668,368 Payments to City for services provided - 2,530,120 Total deductions 484,551 6,864,538 Net increase (decrease) in fiduciary net position 1,063,672 (2,910,089) Net Position -- beginning of the year (1,231,787)2,797,091 Net Position -- end of the year $ (168,115) $ (112,998) The accompanying notes are an integral part of these financial statements. Attachment 1 Page 671 of 858 Notes to the Basic Financial Statements City of Ukiah, California Notes to the Basic Financial Statements Index June 30, 2021 The notes to the financial statements include a summary of significant accounting policies and other notes considered essential to fully disclose and fairly present the transactions and financial position of the City as follows: Note 1 - Summary of Significant Accounting Policies ............................................................................. 36 Note 2 - Stewardship, Compliance, and Accountability .......................................................................... 46 Note 3 - Cash and Investments .............................................................................................................. 47 Note 4 - Accounts Receivable ................................................................................................................. 51 Note 5 – Notes and Loans Receivable ................................................................................................... 52 Note 6 - Capital Assets ........................................................................................................................... 53 Note 7 - Long-Term Liabilities ................................................................................................................. 55 Note 8 – Landfill Closure and Post Closure Costs .................................................................................. 60 Note 9 - Interfund Transactions and Interfund Borrowing ....................................................................... 60 Note 10 - Risk Management ................................................................................................................... 62 Note 11 - Public Employee Retirement Plan........................................................................................... 64 Note 12 – Related Organizations ............................................................................................................ 76 Note 13 - Commitments and Contingencies ........................................................................................... 77 Note 14 – Successor Agency Trust, Former Ukiah Redevelopment Agency ......................................... 78 Note 15 – New Pronouncements ............................................................................................................ 81 Note 16 – Service Contracts ................................................................................................................... 82 Attachment 1 Page 672 of 858 Notes to the Basic Financial Statements City of Ukiah, California Financial Section: Other Required Supplementary Information Page | 36 Note 1 - Summary of Significant Accounting Policies The accounting policies of the City conform to accounting principles generally accepted in the United States of America as applied to government agencies. The Governmental Accounting Standards Board (GASB) is the accepted standard-setting body for establishing governmental accounting and financial reporting principles. The more significant accounting policies of the City are described below: A. Defining the reporting entity The City of Ukiah was incorporated March 8, 1876 under the laws of the State of California. Ukiah operates under a Council-Manager form of government. The City Manager serves as the chief executive for day-to-day operations and long-term planning, including executing the policies and directives of the City Council. Department heads report directly to the City Manager and serve at his or her pleasure. The City provides a range of municipal services to its citizens including public safety (fire and police), public works; planning and building regulation; recreation and parks; airport, golf; and water, sewer, and electric utilities. The Redevelopment Agency of the City of Ukiah (the Agency) was established by the City as a separate legal entity in accordance with state law. The purpose of the Agency was to encourage new investment and reinvestment within legally designated redevelopment areas in partnership with property owners. The Agency was dissolved on February 1, 2012 by the State Legislature and California Governor, Jerry Brown. B. Government-wide and Fund Financial Statement The government-wide financial statements report information on all the non-fiduciary activities of the primary government. For the most part, the effect of interfund activity has been removed from these statements. Governmental activities, which normally are supported by taxes and intergovernmental revenues are reported separately from business-type activities, which rely to a significant extent on fees and charges for support. The statement of activities demonstrates the degree to which the direct expenses of a given function or segment is offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. Program revenues include (1) charges to customers or applicants who purchase, use, or directly benefit from goods, services, or privileges provided by a given function or segment and (2) grant and contributors that are restricted to meeting the operational or capital requirements of a function. Taxes, and other items not properly included among program revenues are reported instead as general revenues. The accounts of the City are organized based on funds. The operations of each fund are accounted for with a separate set of self-balancing accounts that comprise its assets, liabilities, fund equity, revenue, and expenditures or expenses, as appropriate. Government resources are allocated to, and accounted for, in individual funds based upon the purposes for which they are to be spent and the means by which spending activities are controlled. In the fund financial statement in the report, the various funds are grouped into generic funds within three broad fund types. They are as follows: Attachment 1 Page 673 of 858 Notes to the Basic Financial Statements City of Ukiah, California Financial Section: Other Required Supplementary Information Page | 37 Note 1 - Summary of Significant Accounting Policies (Continued) The City reports four major governmental funds: The General Fund is the City’s primary operating fund. It accounts for all financial resources of the general government except those required to be accounted for in another fund. The Streets Capital Improvements fund accounts for resources and activities related to streets and rights-of-way improvements, funded primarily with resources derived from Measure Y, a half- cent district transaction and use tax. The Pension Debt Service fund is used to account for the accumulation of financial resources to meet the City’s lease revenue bonds. The reserve accumulated is to be used to ensure the City has resources to meet debt service in future periods. The HOME Program Income fund is used to account for activities related to the City’s federal HOME program activities and is considered part of the City’s overall housing trust fund. The City reports the following major proprietary funds: The Landfill Fund accounts for the activities of the City’s solid waste landfill operations. The Electric Fund accounts for the activities of the City’s electric generation and distribution operations. The Water Fund accounts for the activities of the City’s water treatment and distribution operations. The Sewer Fund accounts for the activities of the City’s sewage collection and treatment operations. Additionally, the City reports the following fund types: Internal Service Funds - account for garage (vehicle maintenance), stores (purchasing), public safety dispatch, utility billing, workers’ compensation and liability insurance services provided to other departments or agencies of the City, or to other governments, on a cost reimbursement basis. Private-Purpose Trust Funds - account for resources legally held in trust for use by other organizations. All resources of the fund, including any earnings on the invested resources, may be used to support the organization’s or department’s activities. There is no requirement that any portion of these resources be preserved as capital. Custodial Funds - used by the City to report resources held by the City in a custodial capacity for the Ukiah Valley Sanitation District, Ukiah Waste Solutions, and Russian River Watershed. These funds are used to record receipt, temporary investment and remittance of fiduciary resources to individuals, private organizations or other governments. Attachment 1 Page 674 of 858 Notes to the Basic Financial Statements City of Ukiah, California Financial Section: Other Required Supplementary Information Page | 38 Note 1 - Summary of Significant Accounting Policies (Continued) Generally, the effect of interfund activity has been eliminated from the government-wide financial statements. Exceptions to this general rule are payments-in-lieu of taxes and other charges between the City’s proprietary fund functions and various other functions of the City. Elimination of these charges would distort the direct costs and program revenues reported for the various functions concerned. Amounts reported as program revenues include 1) charges to customers or applicants for goods, services, or privileges provided 2) operating grants and contributions, and 3) capital grants and contributions. Internally dedicated resources are reported as general revenues rather than as program revenues. Likewise, general revenues include all taxes. Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund’s principal ongoing operations. Principal operating revenues of the City’s electric, water, wastewater, golf and street lighting funds and the City’s internal service funds are charges to customers for sales and services. Principal operating revenues of the City’s airport, disposal site and conference center funds include charges to customers for sales and services and rental fees. The parking district fund’s principal operating revenues include the sale of parking permits to customers and parking fines. The City also recognizes as operating revenue tap fees intended to recover the cost of connecting new customers to the City’s utilities. Operating expenses for the enterprise funds and internal service funds include cost of power purchases, fuels and lubricants, operations, maintenance, utilities, insurance premiums and deductibles, general and administration, and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as nonoperating revenues and expenses. An emphasis is placed on major funds within the governmental and proprietary categories. A fund is considered major if it is the primary operating fund of the City or meets the following criteria: 1. Total assets, liabilities, revenues, or expenditures/expenses of that individual governmental fund are at least 10 percent of the corresponding total for all funds of that category or type; and, 2. Total assets, liabilities, revenues, or expenditures/expenses of the individual governmental fund are at least 5 percent of the corresponding total for all governmental funds combined. The City reports the following major funds: • General Fund • Streets Capital Projects • Pension Stabilization • HOME Program Income • Landfill • Electric • Water • Sewer C. Basis of Accounting and Measurement focus Basis of accounting refers to when revenue and expenditures (or expenses) are recognized in the accounts and reported in the financial statements. Basis of accounting relates to the timing of measurements made, regardless of the measurement focus applied. Attachment 1 Page 675 of 858 Notes to the Basic Financial Statements City of Ukiah, California Financial Section: Other Required Supplementary Information Page | 39 Note 1 - Summary of Significant Accounting Policies (Continued) Measurement focus is the determination of (1) which assets and which liabilities are included on a government's balance sheet and where they are reported, and (2) whether an operating statement presents information on the flow of financial resources (revenues and expenditures) or information on the flow of economic resources (revenues and expenses). The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting, as are the proprietary fund financial statements. Revenue is recorded when earned and expenses are recorded when liabilities are incurred, regardless of the timing of related cash flows. Property taxes are recognized as revenue in the year for which they are received. Grants and similar items are recognized as revenue as soon as all eligibility requirements have been met. In the fund financial statements, all governmental funds are accounted for using the modified accrual basis of accounting. Revenue is recognized when they become both measurable and available to finance the expenditures of the current period (susceptible to accrual). For this purpose, the City considers revenues to be available if they are collected within 60 days of the end of the current period. Major revenue sources susceptible to accrual include substantially all property taxes, taxpayer-assessed taxes (such as sales and use, utility users, business license, transient occupancy, franchise fees and gas taxes), interest, special assessments levied, state and federal grants and charges for current services. Revenue from licenses, permits, fines and forfeits are recorded as received. Expenditures are recorded when the related fund liability is incurred. Fiduciary fund revenue and expenditures (as appropriate) are recognized on the basis consistent with the fund’s accounting measurement objective. All governmental funds are accounted for using a current financial resources measurement focus. This means that only current assets and current liabilities are generally included on their balance sheets. Their reported fund balance (net current assets) is considered a measure of “available spendable resources.” Governmental fund operating statements present increases (revenue and other financing sources) and decreases (expenditures and other financing uses) in net current assets. Accordingly, they present a summary of sources and uses of “available spendable resources” during a period. The government-wide financial statements, as well as the proprietary funds financial statements, are accounted for on a flow of economic resources measurement focus. This means that all assets and all liabilities (whether current or noncurrent) associated with their activity are included on their balance sheets. Proprietary fund operating statements present increases (revenues) in net total assets. D. Use of Estimates Financial statement preparation, in conformity with accounting principles generally accepted in the United States of America, requires the use of estimates and assumptions that affect the reported amount of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenditures/expenses during the reporting period. Actual results could differ from those estimates. Attachment 1 Page 676 of 858 Notes to the Basic Financial Statements City of Ukiah, California Financial Section: Other Required Supplementary Information Page | 40 Note 1 - Summary of Significant Accounting Policies (Continued) E. Cash and Investments For purposes of the statement of cash flows the City’s cash and cash equivalents are cash on hand, demand deposits, and short-term investments with original maturities of three months or less from the date of acquisition. The City pools cash and investments from all funds for the purpose of increasing income through investment activities. Highly liquid money market investments with maturities of one year or less at time of purchase are stated at amortized cost. All other investments are stated at fair value in accordance with GASB Statement No. 31, Accounting and Financial Reporting for Certain Investments and for External Investment Pools. Market value is used as fair value for those securities for which market quotations are readily available. F. Receivable and Payables Balances representing lending/borrowing transactions between funds outstanding at the end of the fiscal year are reported as either “due to/due from other funds” (amounts due within one year), “advances to/from other funds” (non-current portions of interfund lending/borrowing transactions), or “loans to/from other funds” (long-term lending/borrowing transactions as evidenced by loan agreements). Advances and loans to other funds are offset by a fund balance reserve in applicable governmental funds to indicate they are not available for appropriation and are not expendable available financial resources. Property, sales, use, and utility user taxes related to the current fiscal year are accrued as revenue and accounts receivable and considered available if received within 60 days of year end. Federal and state grants are considered receivable and accrued as revenue when reimbursable costs are incurred under the accrual basis of accounting in the government-wide statement of net position. The amount recognized as revenue under the modified accrual basis of accounting is limited to the amount that is deemed measurable and available. The City considers these taxes available if they are received during the period when settlement of prior fiscal year accounts payable and payroll charges normally occurs. Grants, entitlements or shared revenue is recorded as receivables and revenue in the general, special revenue and capital project funds when they are received or susceptible to accrual. Notes receivables represent individual loans, secured by property liens in favor of the City and the Redevelopment Successor Agency, made through various sources, including the Community Development Block Grant (CDBG) and federal HOME housing programs. When repaid, these amounts are designated for purposes allowed under the reuse guidelines. G. Allowance for Doubtful Accounts Management has elected to record bad debts using the allowance method. H. Prepaid Items and Inventory The City utilizes the consumption method for recoding inventories and prepaid items in governmental funds. All inventories are valued at cost using the first-in/first-out (FIFO) method. An annual charge is made to various City funds to assist in the financing of warehouse operations in addition to being billed as inventory is issued. Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items in both government-wide and fund financial statements. Attachment 1 Page 677 of 858 Notes to the Basic Financial Statements City of Ukiah, California Financial Section: Other Required Supplementary Information Page | 41 Note 1 - Summary of Significant Accounting Policies (Continued) I. Capital Assets Government-Wide Statements Public domain (infrastructure) capital assets include roads, bridges, curbs and gutters, streets, sidewalks, drainage systems, and lighting systems. The accounting treatment of property, plant and equipment (capital assets) depends on whether the assets are used in governmental fund operations or proprietary fund operations and whether they are reported in the government-wide or fund financial statements. Prior to July 1, 2003, governmental funds’ infrastructure assets were not capitalized, since then these assets have been valued at estimated historical cost. Depreciation of all exhaustible capital assets is recorded as an allocated expense in the Statement of Activities, with accumulated depreciation reflected in the Statement of Net Position. Depreciation is provided over the assets’ estimated useful lives using the straight-line method of depreciation. The City capitalizes assets with an original cost greater than $10,000 and with a useful lifespan longer than two years. No depreciation is recorded in the year of acquisition or in the year of disposition. The range of estimated useful lives by type of asset is as follows: Buildings and improvements 30 – 60 years Roadway improvements 50 years Sidewalks, curbs and gutters 50 years Storm drain pipes/structures 50 years Traffic signal devices 5 – 40 years Landscaping 30 years Signage 25 years Leasehold improvements 5 years Machinery and equipment 5 – 20 years Vehicles 5 – 10 years Fund Financial Statements In the fund financial statements, capital assets used in governmental fund operations are accounted for as capital outlay expenditures of the governmental fund upon acquisition. Capital assets used in proprietary fund operations are accounted for the same way as in the government-wide statements. J. Compensated Absences Compensated absences represent the vested portion of accumulated vacation and sick leave. In governmental funds, the cost of vacation and sick leave benefits is recognized when payments are made to employees. Upon separation, 100 of accrued vacation and accrued comp time is paid and in proprietary funds, a long-term liability for such benefits has been recorded. K. Deferred Outflows/Inflows of Resources In addition to assets, the statement of financial position will sometimes report a separate section for deferred outflows of resources. This separate financial statement element, deferred outflows of resources, represents consumption of net position that applies to future period(s) and so will not be recognized as an outflow of resources (expense) until then. The City currently has one item that qualifies for reporting in this category, the result of the City’s implementation of GASB Statement No. 68, Accounting and Financial Reporting for Pensions. See Note 11 – Public Employee Retirement Plan for more information. Attachment 1 Page 678 of 858 Notes to the Basic Financial Statements City of Ukiah, California Financial Section: Other Required Supplementary Information Page | 42 Note 1 - Summary of Significant Accounting Policies (Continued) In addition to liabilities, the statement of financial position will sometimes report a separate section for deferred inflows of resources. This separate financial statement element, deferred inflows of resources, represents an acquisition of net position that applies to a future period(s) and so will not be recognized as an inflow of resources (revenue) until that time. The City has one item, which arises only under the modified accrual basis of accounting, and another, which is a result of the City’s implementation of GASB Statement No. 68, Accounting and Financial Reporting for Pensions, which qualify for reporting in this category. Under the modified accrual basis of accounting, the item, unavailable revenue, is reported in the governmental funds balance sheet. The governmental funds report unavailable revenues from property taxes, special assessments, grant receivables, and other miscellaneous receivables. These amounts are deferred and recognized as an inflow of resources in the period that the amounts become available. L. Net Position Flow Assumptions Sometimes the City will fund outlays for a particular purpose from both restricted (e.g. restricted bond or grant proceeds) and unrestricted resources. In order to calculate the amounts to report as restricted net position and unrestricted net position in the statement of net position, a flow assumption must be made about the order in which the resources are applied. It is the City’s policy to consider restricted net position to have been depleted before unrestricted net position. M. Long-term Liabilities In both the governmental-wide financial statements and proprietary fund financial statements, long-term debt and other long-term liabilities are reported as liabilities in the applicable statement of net position. Bond premiums and discounts are deferred and amortized over the life of the bond. In the fund financial statements, governmental fund types recognized bond premiums and discounts, as well as bond issuance costs, during the current period. The face amount of debt issued is reported as other financing sources. N. Equity Classification Government-Wide Statements Equity is classified as net position and is displayed in three components: Net investment in capital assets – consists of capital assets, including restricted capital assets, net of accumulated depreciation and reduced by the outstanding balances of any bonds, mortgages, notes, or other borrowings that are attributable to the acquisition, construction, or improvement of those assets. Restricted net position – consists of net position with constraints placed on the use by external groups such as creditors, grantors, contributors, or by laws or regulations of other governments or law through constitutional provisions or enabling legislation. Unrestricted net position – all other net position that do not meet the definition of “restricted” or “net investment in capital assets debt.” Attachment 1 Page 679 of 858 Notes to the Basic Financial Statements City of Ukiah, California Financial Section: Other Required Supplementary Information Page | 43 Note 1 - Summary of Significant Accounting Policies (Continued) Fund Financial Statements Governmental fund equity is classified as fund balance. Fund balance is classified as nonspendable, restricted, committed, assigned or unassigned. Proprietary fund equity is classified the same as in the government-wide statements. The classifications for governmental funds are defined as follows for the City: Nonspendable Fund Balance – • Assets that will never convert to cash (prepaid items, inventory). • Assets that will not convert to cash soon enough to affect the current period (long-term notes or loans receivable). These are not in spendable form. • Resources that must be maintained intact pursuant to legal or contractual requirements (the principal of an endowment). Restricted Fund Balance – • Resources that are subject to externally enforceable legal restrictions imposed by parties altogether outside the government (Creditors, Grantors, Contributors and Other Governments). • Resources that are subject to limitations imposed by law through constitutional provisions or enabling legislation (Gas Tax). Committed Fund Balance – • Self-imposed limitations set in place prior to the end of the period. (Encumbrances, economic contingencies and uncertainties). • Limitation at the highest level of decision-making (Council) that requires formal action at the same level to remove, done typically through resolution during the budget process. Assigned Fund Balance – • Amounts in excess of nonspendable, restricted, and committed fund balance in funds other than the General Fund are reported as assigned fund balance and are done so by the City Council. Unassigned Fund Balance – • Residual net resources • Total fund balance in the General Fund in excess of nonspendable, restricted, committed and assigned fund balance (surplus). • Excess of nonspendable, restricted, and committed fund balance over total fund balance (deficit). The General Fund is the only fund that reports a positive unassigned fund balance. In other governmental funds it is not appropriate to report a positive unassigned fund balance amount. However, in governmental funds other than the General Fund, if expenditures incurred for specific purposes exceed the amounts that are restricted, committed, or assigned to those purposes, it may be necessary to report a negative unassigned fund balance in that fund. It is the City’s policy to consider restricted fund balance to have been depleted before using any of the components of unrestricted fund balance. Further, when the components of unrestricted fund balance can be used for the same purpose, committed fund balance is depleted first, followed by assigned fund balance. Unassigned fund balance is applied last. Attachment 1 Page 680 of 858 Notes to the Basic Financial Statements City of Ukiah, California Financial Section: Other Required Supplementary Information Page | 44 Note 1 - Summary of Significant Accounting Policies (Continued) An additional safeguard to the City’s fiscal sustainability lies in the General Fund’s strategic reserve. The Council created this reserve in FY 2013 at 25 percent of operating expenditures for the year. The reserve is to be used to ensure adequate resources are available to manage cash flow and economic uncertainties, minimizing the impact to our employees and the Ukiah citizenry to the greatest extent possible. O. Property Taxes Property taxes in the State of California are administered for all local agencies at the county level and consist of secured, unsecured and utility tax rolls. The following is a summary of major policies and practices relating to property taxes: Property Valuations are established by the Mendocino County Assessor for the secured and unsecured property tax rolls; the utility property tax roll is valued by the State Board of Equalization. Under the provision of Article XIII-A of the State Constitution (Proposition 13, adopted by the voters on June 6, 1978), properties are assessed at 100 percent of full value. From this base assessment, subsequent annual increases in valuation are limited to a maximum of two percent. However, an increase to full value is allowed for property improvements or upon change in ownership. Personal property is excluded from these limitations and is subject to annual reappraisal. Tax Levies are limited to one percent of full assessed value which results in a tax rate of one percent assessed valuation under the provisions of Proposition 13. Tax rates for voter-approved indebtedness are excluded from this limitation. Tax Levy Dates are attached annually on January 1, preceding the fiscal year for which the taxes are levied. The fiscal year begins July 1 and ends June 30 of the following year. Taxes are levied on both real and unsecured personal property as it exists at that time. Liens against real estate, as well as the tax on personal property are not relieved by subsequent renewal or change in ownership. Tax Collections are the responsibility of the Mendocino County Treasurer-Tax Collector. Taxes and assessments on secured and utility rolls, which constitute a lien against the property, may be paid in two installments. The First is due on November 1 of the fiscal year and is delinquent if not paid by December 10; The second is due on March 1 of the fiscal year and is delinquent if not paid by April 10. Unsecured personal property taxes do not constitute a lien against property unless the taxes become delinquent. Payments must be made in one installment, which is delinquent if not paid by August 31 of the fiscal year. Significant penalties are imposed by the county for late payments. The City has elected to receive the City’s portion of the property taxes from the county under the county Teeter Bill program. Under this program, the City receives 100 percent of the City’s share of the levied property taxes in periodic payments with the county assuming the responsibility for the delinquencies. Property Tax Administration Fees – the state of California FY 90-91 Budget Act authorized counties to collect an administrative fee for collection and distribution of property taxes. Attachment 1 Page 681 of 858 Notes to the Basic Financial Statements City of Ukiah, California Financial Section: Other Required Supplementary Information Page | 45 Note 1 - Summary of Significant Accounting Policies (Continued) Tax Levy Apportionments – due to the nature of the City-wide maximum levy, it is not possible to identify general-purpose tax rates for specific entities. Under State legislation adopted subsequent to the passage of Proposition 13, apportionments to local agencies are made by the county’s auditor-controller based primarily on the ratio that each agency represented of the total City-wide levy for the three fiscal years prior to fiscal year 1979. P. Interfund Transfers Resources are reallocated between funds by reporting them as interfund transfers. For the purposes of the Statement of Activities, all interfund transfers between individual governmental funds have been eliminated. Q. Pensions For purposes of measuring the net pension liability and deferred outflows/inflows of resources related to pensions, and pension expense, information about the fiduciary net position of the City of Ukiah can be found in the following notes and with the City’s pension administrator, CalPERS. California Public Employees' Retirement System (CaIPERS) plans (Plans) and additions to/deductions from the Plans' fiduciary net position have been determined on the same basis as they are reported by CaIPERS. For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value. R. New or Closed Funds The City opened the following new funds in this reporting year: • CASP Certification • American Rescue Attachment 1 Page 682 of 858 Notes to the Basic Financial Statements City of Ukiah, California Financial Section: Other Required Supplementary Information Page | 46 Note 2 - Stewardship, Compliance, and Accountability The following major and non-major funds had deficit fund balances as of June 30, 2021, Deficit Fund Equity Major and Non-major Governmental Funds Fund Name Deficit Amount Discussion/Explanation Streets Capital Improvement Fund $ (555,389)Deficit amount is the result of capital projected funded by a specific general revenue source (Measure Y) and will be eliminated with revenues received in 2021. ARRC (38,365)Deficit amount is the result of prior capital projects and operational deficiencies. The deficit is being eliminated with future revenues generated by ARRC operations. Downtown Business Improvement (16,417)Deficit amount is the result of an advanced payment to the Ukiah Main Street Program and will be eliminated with revenues in 2022. Winter Special Events (12,636)Deficit amount is the result of increased operational costs that current revenues were insufficient to cover. The deficit will be eliminated with revenues in 2022. Highway User Tax (Gas Tax) (501,985)Deficit amount is the result of capital projected funded by a specific revenue sources and will be eliminated when unavailable revenues are recognized as revenues in the future. Swimming Pool (135,756)Deficit amount is the result of capital projected funded by a specific revenue sources and will be eliminated with future revenues dedicated for pool activities. Rail Trail (22,086)Deficit amount is the result of capital projected funded by a specific revenue sources and will be eliminated when unavailable revenues are recognized as revenues in the future. Attachment 1 Page 683 of 858 Notes to the Basic Financial Statements City of Ukiah, California Financial Section: Other Required Supplementary Information Page | 47 Note 3 - Cash and Investments The City follows the practice of pooling cash and investments of all funds except for the restricted funds required to be held by outside custodians, fiscal agents or trustees under the provisions of bond indentures. Cash and investments as of June 30, 2021 are classified in the accompanying financial statements as follows: Cash and Investments Total Cash equivalents and investments Pooled cash and investments, at fair value Cash in bank 17,392,697$ Cash in investment portfolio, excluding LAIF 26,430,398 Cash with LAIF 581,805 Total pooled investment balances 27,012,203 Non pooled cash and investments, at fair value Petty cash 5,160 Total non pooled cash, at fair value 5,160 Cash with fiscal agent 2,945,257 Total non pooled investments, at fair value 2,945,257 Total cash equivalents and investments 47,355,317$ Investment Portfolio Analysis PAR % of Portfolio Permitted by Policy In compliance with investment policy <1 1 to 2 >2 10,015,000$ US treasury obligations 37.34% 100% Yes -$ 5,152,396$ 4,937,621$ 10,090,017$ Federal agency: 5,380,000 Government sponsored enterprise 20.06% 100% Yes - 2,252,804 3,126,702 5,379,506 982,498 Collateral mortgage obligation 3.66% 100% Yes 231,789 693,638 73,546 998,973 760,000 Municipal obligations 2.83% 100% Yes - 110,518 652,704 763,222 445,000 Supra-National agency 1.66% 30%Yes - 279,995 164,526 444,521 3,690,000 Corporate notes 13.76% 30%Yes 254,684 1,308,902 2,167,416 3,731,002 1,645,000 Negotiable certificates of deposit 6.13% 30%Yes 507,228 1,162,378 - 1,669,606 3,312,749 Asset-backed securities 12.35% 20%Yes 28,727 282,310 3,030,021 3,341,058 581,805 Local agency investment fund 2.17% $65M Yes 581,805 - - 581,805 12,493 Money market 0.05% 20%Yes 12,493 - - 12,493 26,824,545$ Total pooled investments 100.00%1,616,726$ 11,242,941$ 14,152,536$ 27,012,203$ 2,866,806 Money market 97.34% 20%Yes 2,866,806 - - 2,866,806 78,451 County of Mendocino treasury 2.66% 100% Yes 78,451 78,451 Total non-pooled investments 100.00%2,945,257$ -$ -$ 2,945,257$ Maturities (in years) Attachment 1 Page 684 of 858 Notes to the Basic Financial Statements City of Ukiah, California Financial Section: Other Required Supplementary Information Page | 48 Note 3 - Cash and Investments (continued) Collateral and Categorization Requirements At the fiscal year end, the City’s carrying amount of demand deposits was $17,392,697 and the bank account balance was $16,981,402. The difference of $411,295 represented outstanding checks and deposits in transit. All deposits not insured by Federal Depository Insurance Corporation (FDIC) would be covered by collateralized securities in accordance with California Government Code Section 53600-53609. Investment Policy The table below identifies the investment types that are authorized under provisions of the City’s investment policy adopted August 16, 2005 (subsequently updated July 5, 2017), and in accordance with Section 53601 of the California Government Code. The table also identifies certain provisions of the investment policy that address interest rate risk, credit risk, and concentration of credit risk. The City’s investment policy also limits the weighted average of the City’s investment portfolio to 2.5 years and except for obligations of the U.S. government and its agencies, no more than 10 percent of the portfolio may be invested in the securities of any single issuer. Authorized Investment Type Maximum Maturity Maximum Percentage of Portfolio Maximum Investment in One Issuer City of Ukiah Bonds 5 Years None 10% U.S. treasury obligations 5 Years Unlimited None State of California obligations 5 Years None 10% Non-California state obligations 5 Years None 10% Local agency obligations 5 Years None 10% Federal agency or government sponsored enterprise obligations 5 Years None 10% Bankers' acceptances 180 Days 40%5% U.S. Commercial paper (highest rating)270 Days 25%5% Negotiable certificates of deposit 5 Years 30%5% Repurchase agreements (1)365 Days None 10% Reverse repurchase agreements (2) 92 Days 20%10% Medium-term notes-corporate or depository institutions (3)5 Years 30%5% Money market funds (highest rating)n/a 20%10% Local Agency Investment Fund (LAIF)N/A $65m $65m Time deposits 5 Years 25%10% Mortgage-backed and Asset-backed Securities (rated "AA" or better)5 Years 20%10% (1) Market value of collateral shall be valued at 102 percent and monitored daily. (2) Requires prior City Council approval. (3) Five years or less. Attachment 1 Page 685 of 858 Notes to the Basic Financial Statements City of Ukiah, California Financial Section: Other Required Supplementary Information Page | 49 Note 3 - Cash and Investments (continued) Disclosures Relating to Interest Rate Risk Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an investment. Generally, the longer the maturity of an investment the greater the sensitivity of its fair value to changes in market interest rates. One of the ways that the City of Ukiah manages its exposure to interest rate risk is by investing in the State of California’s Local Agency Investment Fund (LAIF), whose underlying securities have staggered maturities and are generally due on demand, which provides cash flow and liquidity needed for operations. Disclosures Relating to Credit Risk Generally, credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of the investment. This is measured by the assignment of a rating by nationally recognized statistical rating organization. The City’s investment policy limits credit risk by requiring compliance with the California Government Code for investment of public funds, as described in detail above. Concentration of Credit Risk Except for securities of the U.S. Government and its agencies, the investment policy of the City limits the amount that can be invested in any one issuer to no more than 10 percent of the total portfolio. As of June 30, 2021, holdings in any one issuer did not exceed 5 percent of the total portfolio. Custodial Credit Risk The credit risk for deposits is the risk that, in the event of failure of a depository financial institution, a government will not be able recover its deposits or will not be able to recover collateral securities that are in the possession on an outside party. The California government code and the City’s investment policy do not contain legal or policy requirements that would limit the exposure to custodial credit risk for deposits, other than the following provision for deposits: The California government code requires that a financial institution secure deposits made by state or local governmental units by pledging securities in an undivided collateral pool held by a depository regulated under state law (unless so waived by the governmental unit). The market value of the pledged securities in the collateral pool must be equal at least 110 percent of the total amount deposited by the public agencies. California law also allows financial institutions to secure City deposits by pledging first trust deed mortgage notes having a value of 150 percent of the secured public deposits. At June 30, 2021, the City had $16,369,739 in financial institutions that were not covered by the FDIC but were covered by collateralized securities of the financial institutions where the deposits were maintained. The credit risk for investments is the risk that, in the event of the failure of counterparty (e.g., broker-dealer) to a transaction, a government will not be able to recover the value of investment or collateral securities that are in the possession of another party. The California government code and the City’s investment policy do not contain legal or policy requirements that would limit the exposure to custodial risk for investments. With respect to investments, custodial credit risk generally applies only to direct investments in marketable securities. Custodial credit risk does not apply to a local government’s indirect investment in securities using mutual funds or government investment pools (such as LAIF). Attachment 1 Page 686 of 858 Notes to the Basic Financial Statements City of Ukiah, California Financial Section: Other Required Supplementary Information Page | 50 Note 3 - Cash and Investments (continued) Credit Risk Schedule Investment Type AAA AA+ to A-BBB+Unrated US Treasury obligations 10,090,017$ N/A -$ 10,090,017$ -$ -$ Federal agency/GSE 5,379,506 N/A - 5,379,506 - - Federal agency/CMO 998,973 N/A - 998,973 - - Municipal obligations 763,222 N/A 49,817 567,426 - 145,979 Supra-National agency 444,521 N/A 444,521 - - - Corporate notes 3,731,002 N/A - 3,175,884 555,118 - Negotiable certificates of deposit 1,669,606 N/A - 1,669,606 - - Asset-backed securities 3,341,058 N/A 2,668,504 - - 672,554 LAIF 581,805 N/A 581,805 - - - Money market 12,493 N/A 12,493 - - - County of Mendocino treasury 78,451 N/A 78,451 - - - Held by fiscal agent: Money market 2,866,806 N/A 2,866,806 - - - Total 29,957,460$ 6,702,397$ 21,881,412$ 555,118$ 818,533$ Total Investment Minimum Legal Rating Rating as of Fiscal Year End Fair Value The City categorizes its fair value measurements within the fair value hierarchy established by generally accepted accounting principles. The hierarchy is based on the valuation inputs used to measure the fair value of the asset. Level 1 inputs are quoted prices in active markets for identical assets; Level 2 inputs are other than quoted process included in Level 1 and are valued using a matrix pricing model using either directly or indirectly observable inputs; Level 3 inputs are significant unobservable inputs. Fair Value Schedule Investment Type 1 2 US Treasury obligations 10,090,017$ -$ -$ 10,090,017$ Federal agency/GSE 5,379,506 - - 5,379,506 Federal agency/CMO 998,973 - - 998,973 Municipal obligations 763,222 - - 763,222 Supra-National agency 444,521 - - 444,521 Corporate notes 3,731,002 - - 3,731,002 Negotiable certificates of deposit 1,669,606 - - 1,669,606 Asset-backed securities 3,341,058 - - 3,341,058 LAIF 581,805 581,805 - - Money market 12,493 12,493 - - County of Mendocino treasury 78,451 78,451 - - Held by fiscal agent: Money market 2,866,806 2,866,806 - - Total 29,957,460$ 3,539,555$ -$ 26,417,905$ Total Investment Investments Not Measured at Fair Value Level Attachment 1 Page 687 of 858 Notes to the Basic Financial Statements City of Ukiah, California Financial Section: Other Required Supplementary Information Page | 51 Note 3 - Cash and Investments (continued) Participation in an External Investment Pool The City is a voluntary participant in the California Local Agency Investment Fund (LAIF), which is regulated by California Government Code Section under the oversight of the Local Investment Advisory Board (Board). The Board consists of five members as designated by state statue and is chaired by the State Treasurer who is responsible for the day to day administration of LAIF. The balance available for withdrawal is based on the accounting records maintained by LAIF, which are recorded on an amortized cost basis, which is different from the fair value of the City’s position in the LAIF pool. The State Treasurer determines fair value on its investment portfolio based on market quotations for those securities where market quotations are readily available. As of June 30, 2021, the City’s investment in LAIF was $581,805. The total amount invested by all public agencies at that date was $37.07 billion. LAIF is part of the California Pooled Money Investment Account (PMIA), which at June 30, 2021 has a balance of $193.3 billion. Financial Statements of LAIF and PMIA may be obtained from the California Treasurer’s web site at www.treasurer.ca.gov. Note 4 - Accounts Receivable Accounts receivable consisted of the following at June 30, 2021: Receivables Allowance Net Governmental activities Interest 5,791$ -$ 5,791$ Taxes 2,898,954 - 2,898,954 Grants and subventions 1,332,050 - 1,332,050 Accounts receivable: Customers 2,016,168 - 2,016,168 Total Governmental activities 6,252,963 - 6,252,963 Business-type activities Interest 7,682 - 7,682 Grants and subventions 659,279 - 659,279 Accounts receivable: Customers 7,128,572 114,620 7,013,952 Total Business-type activities 7,795,533 114,620 7,680,913 Total receivables 14,048,496$ 114,620$ 13,933,876$ Concentration of Receivables Other governments 35.1% Individuals/businesses 64.9% Amounts do not indicate a significant concentration (greater than 25 percent of the total receivable balance) with any single individual, business or agency. Attachment 1 Page 688 of 858 Notes to the Basic Financial Statements City of Ukiah, California Financial Section: Other Required Supplementary Information Page | 52 Note 5 – Notes and Loans Receivable Through the City’s various housing rehabilitation funds, first-time homebuyer’s funds, and business/economic development loan funds, the City has loaned funds to qualifying individuals and businesses. Interest rates vary depending on the terms of the loan. Interest accrues on the loans that bear interest. Loans and notes receivable for the year ended June 30, 2021, consisted of the following: Loans and Notes Receivable Beginning Ending 7/1/2020 Additions Deletions 6/30/2021 Major governmental funds: General fund 4,045,093$ 5,056$ 1,925,052$ 2,125,097$ Nonmajor governmental funds: Special revenue funds: LMIHF Housing Asset Fund 1,476,183 7,291 - 1,483,474 CDBG Program Income 416,209 - 194,626 221,583 Home Program Income 3,215,794 5,019,500 75,496 8,159,798 Total governmental funds 9,153,279 5,031,847 2,195,174 11,989,952 Enterprise funds: Golf Fund 12,000 6,500 5,500 Total enterprise funds 12,000 - 6,500 5,500 Total loans/notes receivable 9,165,279$ 5,031,847$ 2,201,674$ 11,995,452$ This area intentionally left blank. Attachment 1 Page 689 of 858 Notes to the Basic Financial Statements City of Ukiah, California Financial Section: Other Required Supplementary Information Page | 53 Note 6 - Capital Assets Governmental capital asset activity for the year ended June 30, 2021, was as follows: Capital Assets - Governmental Balance Balance July 1, 2020 Additions Deletions Transfers June 30, 2021 Governmental activities: Nondepreciable assets: Land 2,705,812$ 1,386,818$ -$ -$ 4,092,630$ Construction in progress 1,122,971 5,909,767 (61,317) - 6,971,422 Total nondepreciable assets 3,828,783 7,296,586 (61,317) - 11,064,052 Depreciable assets: Buildings and improvements 21,860,720 2,094 - - 21,862,814 Machinery, equipment, and vehicles 11,642,531 241,883 (1,838,922) - 10,045,491 Infrastructure and network 55,602,715 - - - 55,602,715 Total depreciable assets 89,105,966 243,976 (1,838,922) - 87,511,020 Total 92,934,749 7,540,562 (1,900,239) - 98,575,072 Accumulated depreciation: Buildings and improvements (7,118,904) (730,664) - - (7,849,568) Machinery, equipment, and vehicles (7,880,849) (477,952) 1,838,922 - (6,519,879) Infrastructure and network (24,859,024) (942,379) - - (25,801,403) Total accumulated depreciation (39,858,777) (2,150,995) 1,838,922 - (40,170,850) Net depreciable assets 49,247,189 (1,907,019) - - 47,340,170 Total governmental capital assets, net 53,075,972$ 5,389,567$ (61,317)$ -$ 58,404,222$ Allocation of Depreciation Expense Governmental Activities: General government 309,047$ Public works 1,177,218 Public safety 170,970 Recreation and culture 123,590 Parks, buildings, and grounds 370,170 Total Depreciation Expense 2,150,995$ Attachment 1 Page 690 of 858 Notes to the Basic Financial Statements City of Ukiah, California Financial Section: Other Required Supplementary Information Page | 54 Note 6 – Capital Assets (Continued) Business-type capital asset activity for the year ended June 30, 2021, was as follows: Capital Assets - Business-type Balance Balance July 1, 2020 Additions Deletions Transfers June 30, 2021 Business-type activities: Nondepreciable assets: Land 6,932,722$ 110,005$ -$ -$ 7,042,727$ Capacity rights 90,000 90,000 - - 180,000 Construction in progress 7,884,420 5,664,018 (136) (5,077,642) 8,470,658 Total nondepreciable assets 14,907,142 5,864,023 (136) (5,077,642) 15,693,385 Depreciable assets: Buildings and improvements 63,440,511 24,469 (181,752) - 63,283,228 Machinery, equipment, and vehicles 14,898,769 198,886 (1,535,269) - 13,562,385 Infrastructure and network 157,263,611 3,362,621 - 5,077,642 165,703,874 Total depreciable assets 235,602,891 3,585,976 (1,717,021) 5,077,642 242,549,490 Total 250,510,033 9,449,998 (1,717,157) - 258,242,874 Accumulated depreciation: Buildings and improvements (32,740,943) (1,382,039) 181,752 - (33,941,230) Machinery, equipment, and vehicles (8,883,231) (699,398) 1,535,269 - (8,047,360) Infrastructure and network (34,957,618) (3,246,890) - - (38,204,508) Total accumulated depreciation (76,581,792) (5,328,327) 1,717,021 - (80,193,098) Net depreciable assets 159,021,099$ (1,742,351)$ -$ 5,077,642$ 162,356,391$ Total business-type capital assets, net 173,928,241$ 4,121,671$ (136)$ -$ 178,049,776$ Allocation of Depreciation Expense Business-type Activities: Water 1,099,917$ Sewer 2,163,461 Recycled Water 568,287 Electric 1,308,285 Landfill 13,271 Parking 2,424 Airport 109,725 Street lighting 2,943 Conference Center 45,889 Golf 2,236 Ambulance 11,889 Total Depreciation Expense 5,328,327$ Attachment 1 Page 691 of 858 Notes to the Basic Financial Statements City of Ukiah, California Financial Section: Other Required Supplementary Information Page | 55 Note 7 - Long-Term Liabilities The following is a summary of changes in long-term liabilities for the year ended June 30, 2021. Long-term Obligations Beginning Balance Ending Balance Governmental Activities July 1, 2020 Additions Reductions June 30, 2021 2017 fire engine lease (direct borrowing)869,798$ -$ 106,402$ 763,396$ 109,586$ 2017 computer equipment lease (direct borrowing)116,418 - 58,138 58,280 58,280 2017 I-Bank financing lease (direct borrowing)3,837,218 - 85,442 3,751,776 88,261 2020 fire brush truck equipment lease (direct borrowing)227,606 - 20,390 207,216 20,884 2020 fire self-contained breathing apparatus equipment lease (direct borrowing)- 343,763 15,306 328,457 31,167 Series 2020A Community Facilities Lease Revenue Bonds - 2,530,000 150,000 2,380,000 90,000 2020A unamortized premium - 351,130 - 351,130 17,557 Series 2020B CalPERS Taxable Lease Revenue Bonds - 32,426,592 - 32,426,592 458,361 Claims payable 573,944 - 143,486 430,458 143,486 Net pension liability 36,143,162 2,013,584 - 38,156,746 - Compensated absences 993,354 1,091,526 1,012,288 1,072,592 107,259 Total 42,761,500$ 38,756,595$ 1,591,452$ 79,926,642$ 1,124,841$ Business-Type Activities 2017 CalTrans Aeronautics Loan - Airport (direct borrowing)169,999$ -$ 10,364$ 159,635$ 10,655$ 2016 Water Revenue Refunding Bonds 9,160,000 - 540,000 8,620,000 565,000 2016 unamortized premium 1,383,428 - 25,153 1,358,275 25,153 Lawsuit settlement liability 3,000,000 - 1,000,000 2,000,000 1,000,000 Landfill closure and post-closure 19,063,628 233,965 - 19,297,593 - 2017 SWRCB recycled water loan (direct borrowing)16,778,411 1,460,327 - 18,238,738 525,558 Series 2020 Wastewater Refunding Bonds 25,010,000 - 1,390,000 23,620,000 1,436,000 Series 2020B CalPERS Taxable Lease Revenue Bonds - 17,448,408 - 17,448,408 246,639 Claims payable 148,749 - 49,583 99,166 49,583 Net pension liability 17,210,447 1,685,183 - 18,895,630 - Compensated absences 525,516 572,778 535,451 562,843 56,280 Total 92,450,178$ 21,400,661$ 3,550,551$ 110,300,288$ 3,914,869$ Due within One Year The general fund is primarily responsible for liquidating the net pension liability and compensated absences of governmental activities. Governmental Activities 2017 Fire Engine Lease (direct borrowing) In October 2017, the City entered a capital lease with Umpqua Bank for the purchase of two Type-1 fire engines totaling $1,125,731. Principal and interest payments are due semi-annually on May 1 and November 1 of each year with an interest rate of 2.45 percent. Lease payments are made by the General Fund. The total combined amount of accumulated depreciation on both fire engines is $296,419. Attachment 1 Page 692 of 858 Notes to the Basic Financial Statements City of Ukiah, California Financial Section: Other Required Supplementary Information Page | 56 Note 7 – Long-Term Liabilities (Continued) 2017 Computer Equipment Lease (direct borrowing) In July 2017, the City entered into a capital lease with IBM Credit LLC for the purchase of computer equipment and software totaling $285,663. Principal is paid annually on September 1 and interest payments are due monthly with interest rates ranging from 2.15 percent to 2.37 percent. Lease payments are made primarily by the Information Technology internal service fund. The total combined amount of accumulated depreciation on this computer equipment is $171,156. 2017 I-Bank Financing Lease (direct borrowing) In August 2017, the City entered into an agreement for $4,000,000 with the California Infrastructure and Economic Development Bank (I-Bank) to finance roadway and other right-of-way improvements related to the Redwood Business Park. Principal is paid annually commencing on August 1,2018, and interest payments are made semi-annually on August 1 and February 1 at an interest rate of 3.30 percent. Lease payments are made primarily by the General Fund. The total combined amount of accumulated depreciation on the roadway improvements is $240,000. 2020 Fire Brush Truck Lease (direct borrowing) In February 2020, the City entered a capital lease with Umpqua Bank for the purchase of one Skeeter fire brush truck totaling $227,606. Principal and interest payments are due semi-annually on March 1 and September 1 of each year with an interest rate of 2.8 percent. Lease payments are made by the General Fund. The total combined amount of accumulated depreciation on this truck is $11,380. 2020 Self-Contained Breathing Apparatus Lease (direct borrowing) In November 2020, the City entered an equipment lease with Umpqua Bank for the purchase of one self- contained breathing apparatus system totaling $343,762.85. Principal and interest payments are due on June 1 and December 1 of each year with an interest rate of 2.39 percent. Lease payments are made by both the General Fund and the Ukiah Valley Fire District at an even 50 percent split. Series 2020A Lease Revenue Bonds (Community Facilities Improvement Project) Dated December 1, 2020 the original amount of the obligation was $2,530,000 and is secured with a pledge consisting primarily of base rental payments to be made by the City as rental for certain City-owned property. The obligation principal is payable in annual installments beginning April 1, 2021 ranging from $150,000 to $175,000 through year 2040. Interest is payable semi-annually on April 1 and October 1 of each year, commencing April 1, 2021, with an interest rate ranging from 3.00 percent to 4.00 percent. The Series 2020A Lease Revenue Bonds were issued to reimburse the City for the cost to purchase the Bank of America building, and to pay the costs associated with renovating the new customer service center and roof replacement project for the museum. Series 2020B Taxable Lease Revenue Bonds (CalPERS Prepayment Project) Dated December 1, 2020 the original amount of the obligation was $49,875,000 and is secured with a pledge consisting primarily of base rental payments to be made by the City as rental for certain City-owned property. This obligation is shared with business-type funds, with the governmental fund’s share being 65 percent. The obligation principal is payable in annual installments beginning April 1, 2022 ranging from $705,000 to $3,015,000 through year 2049. Interest is payable semi-annually on April 1 and October 1 of each year, commencing October 1, 2021, with an interest rate ranging from 1.37 percent to 3.706 percent. The Series 2020B Taxable Lease Revenue Bonds were issued to refinance a portion of the UAL of the City’s Miscellaneous, Safety Fire, and Safety Police pension plans with CalPERS. Attachment 1 Page 693 of 858 Notes to the Basic Financial Statements City of Ukiah, California Financial Section: Other Required Supplementary Information Page | 57 Note 7 – Long-Term Liabilities (Continued) The annual debt service of these obligations to maturity are as follows: Debt Service Schedule Governmental Year Ending June 30, Principal Interest Principal Interest Principal Interest Principal Interest 2022 109,586$ 18,374$ 58,280$ 1,282$ 88,261$ 133,607$ 20,884$ 4,860$ 2023 112,338 15,622 - - 91,173 130,383 21,389 4,355 2024 115,159 12,800 - - 94,182 127,050 21,907 3,837 2025 118,051 9,908 - - 97,290 123,609 22,437 3,307 2026 121,016 6,943 - - 100,501 120,053 22,980 2,764 2027-2031 187,246 4,693 - - 554,495 542,690 97,619 5,358 2032-2036 - - - - 652,230 434,456 - - 2037-2041 - - - - 767,188 307,151 - - 2042-2046 - - - - 902,411 157,403 - - 2047-2051 - - - - 404,045 15,271 - - Total 763,396$ 68,340$ 58,280$ 1,282$ 3,751,776$ 2,091,673$ 207,216$ 24,481$ Due within one year 109,586$ 18,374$ 58,280$ 1,282$ 88,261$ 133,607$ 20,884$ 4,860$ Due after one year 653,811 49,967 - - 3,663,515 1,958,066 186,332 19,621 Total 763,396$ 68,340$ 58,280$ 1,282$ 3,751,776$ 2,091,673$ 207,216$ 24,481$ Year Ending June 30, Principal Interest Principal Interest Principal Interest Principal Interest 2022 31,167$ 7,715$ 90,000$ 92,450$ 458,361 1,519,425 856,538$ 1,777,713$ 2023 31,921 6,961 90,000 89,750 793,192 1,172,585 1,140,013 1,419,655 2024 32,694 6,188 95,000 87,050 841,954 1,160,124 1,200,896 1,397,049 2025 33,485 5,397 95,000 84,200 864,709 1,144,952 1,230,972 1,371,373 2026 34,295 4,587 100,000 80,400 897,217 1,127,640 1,276,009 1,342,387 2027-2031 164,895 10,075 570,000 338,000 4,970,452 5,259,024 6,544,707 6,159,839 2032-2036 - - 685,000 215,800 6,124,481 4,382,705 7,461,711 5,032,961 2037-2041 - - 655,000 66,800 7,701,112 3,063,221 9,123,300 3,437,172 2042-2046 - - - - 7,853,899 1,345,067 8,756,310 1,502,470 2047-2051 - - - - 1,921,215 139,690 2,325,260 154,961 Total 328,457$ 40,923$ 2,380,000$ 1,054,450$ 32,426,592$ 20,314,431$ 39,915,717$ 23,595,581$ Due within one year 31,167$ 7,715$ 90,000$ 92,450$ 458,361$ 1,519,425$ 856,538$ 1,777,713$ Due after one year 297,290 33,208 2,290,000 962,000 31,968,231 18,795,007 39,059,179$ 21,817,868$ Total 328,457$ 40,923$ 2,380,000$ 1,054,450$ 32,426,592$ 31,245,415$ 39,915,717$ 23,595,581$ Governmental Activities Equipment Lease, Self-Contained Breathing Apparatus (2020) Capital Lease, Fire Engines (2017)IBM Credit Capital Lease I-Bank Financing Lease (2017) Total Series 2020A Community Facilities Lease Revenue Bonds Series 2020B CalPERS Taxable Lease Revenue Bonds Capital Lease, Fire Brush Truck (2020) Attachment 1 Page 694 of 858 Notes to the Basic Financial Statements City of Ukiah, California Financial Section: Other Required Supplementary Information Page | 58 Note 7 – Long-Term Liabilities (Continued) Business-Type Activities 2017 Caltrans Aeronautics Loan – Airport (direct borrowing) Loan issued to the City for the design, purchase, and installation of a 12,000-gallon service aviation gas fuel tank at the Ukiah Municipal Airport. Annual principal and interest payments are made at an annual interest rate of 2.33 percent, are due February each year. Revenues generated by airport operations secure payments. 2016 Water Revenue Refunding Bonds Dated March 1, 2016 the original amount of the obligation was $11,155,000 and is secured with a pledge of net revenues from the City’s Water system. The obligation principal is payable in annual installments beginning September 1, 2016 ranging from $475,000 to $740,000 through September 1, 2035. Interest payments commence September 1, 2016 and are payable semiannually on September 1st and March 1st and pay interest ranging from 2.00 percent to 3.125 percent. The bonds contain a provision that, in an event of default, outstanding amounts may become immediately due. The 2016 Water Revenue Refunding Bonds were issued to refund the 2005 ABAG Bonds (Water Treatment Plant Installment Loan) and the SWRCB Water Treatment Loan. The two debt obligations were used to acquire and construct capital improvements to the City’s water treatment plant. Series 2020 Wastewater Revenue Refunding Obligations (2020 Wastewater Refunding Project) Dated February 24, 2020 the original amount of the obligation was $25,010,000 and is secured with a pledge of net revenues from the City’s wastewater system. Proceeds were used to refund the ABAG 2006 Water & Wastewater Revenue Bonds, Series A. The obligation principal and interest payments at an annual interest rate of 2.42% are payable in annual installments beginning March 1, 2022 ranging from $1,998,772 to $1,999,719 through March 1, 2035. The bonds contain a provision that, in an event of default, outstanding amounts may become immediately due. Lawsuit Settlement Liability In October 2018 the City entered into a settlement agreement as part of the ongoing lawsuit with the Ukiah Valley Sanitation District. As part of the settlement agreement, the City agreed to pay $4,984,310 to the District over a 5-year period. The first payment of $984,310 was made in October 2018, with annual installments of $1,000,000 to be made each year for year four years beginning in October 2020. 2017 SWRCB Recycled Water Loan (direct borrowing) In July 2017, the City entered into an agreement with the California State Water Resource Control Board (SWRCB) to finance the development and construction of a recycled water system. Construction was completed in September 2019. The loan balance as of June 30, 2021 was $16,778,411. Subsequent to fiscal year end June 30, 2021, the last drawdown was made in September 2020. The final total amount funded by the loan, including accrued interest, is $18,224,756. Annual principal and interest payments will be made for a thirty-year term beginning in July 2022 at an interest rate of 1.00 percent. The loan will be repaid with revenues from the Water Enterprise Fund. Attachment 1 Page 695 of 858 Notes to the Basic Financial Statements City of Ukiah, California Financial Section: Other Required Supplementary Information Page | 59 Note 7 – Long-Term Liabilities (Continued) Series 2020B Taxable Lease Revenue Bonds (CalPERS Prepayment Project) Dated December 1, 2020 the original amount of the obligation was $49,875,000 and is secured with a pledge consisting primarily of base rental payments to be made by the City as rental for certain City-owned property. This obligation is shared with governmental funds, with the business-type fund’s share being 35 percent. The obligation principal is payable in annual installments beginning April 1, 2022 ranging from $705,000 to $3,015,000 through year 2049. Interest is payable semi-annually on April 1 and October 1 of each year, commencing October 1, 2021, with an interest rate ranging from 1.37 percent to 3.706 percent. The Series 2020B Taxable Lease Revenue Bonds were issued to refinance a portion of the UAL of the City’s Miscellaneous, Safety Fire, and Safety Police pension plans with CalPERS. The annual debt service of these obligations to maturity are as follows: Debt Service Schedule Business-type Year Ending June 30,2017 SWRCB Recycled Water Loan Principal Interest Principal Interest Principal Interest Principal Interest 2022 10,655$ 3,719$ 565,000$ 355,219$ 1,000,000$ 60,000$ 525,558$ 181,109 2023 10,903 3,471 415,000 335,618 1,000,000 30,000 529,536 177,132 2024 11,157 3,217 435,000 316,444 - - 534,831 171,836 2025 11,417 2,957 460,000 294,069 - - 540,180 166,488 2026 11,683 2,691 480,000 270,569 - - 545,581 161,086 2027-2031 62,629 9,243 2,795,000 957,218 - - 2,810,843 722,495 2032-2036 41,191 1,936 3,470,000 280,891 - - 2,954,224 579,114 2037-2041 - - - - - - 3,104,920 428,419 2042-2046 - - - - - - 3,263,302 270,037 2047-2051 - - - - - - 3,429,763 103,575 Total 159,635$ 27,234$ 8,620,000$ 2,810,028$ 2,000,000$ 90,000$ 18,238,738 2,961,292 Due within one year 10,655$ 3,719$ 565,000$ 355,219$ 1,000,000$ 60,000$ 525,558$ 181,109$ Due after one year 148,980 23,515 8,055,000 2,454,809 1,000,000 30,000 17,713,180 2,780,182 Total 159,635$ 27,234$ 8,620,000$ 2,810,028$ 2,000,000$ 90,000$ 18,238,738 2,961,292 Year Ending June 30, Principal Interest Principal Interest Principal Interest 2022 1,436,000$ 562,965$ 246,639$ 817,586$ 3,783,852$ 1,980,599$ 2023 1,471,000 528,008 426,808 630,955 3,853,247$ 1,705,184$ 2024 1,507,000 492,192 453,046 624,250 2,941,035$ 1,607,940$ 2025 1,543,000 455,505 465,291 616,086 3,019,887$ 1,535,106$ 2026 1,581,000 417,934 482,783 606,771 3,101,047$ 1,459,051$ 2027-2031 8,503,000 1,493,116 2,674,548 2,829,825 16,846,020$ 6,011,897$ 2032-2036 7,579,000 418,478 3,295,519 2,358,288 17,339,934$ 3,638,706$ 2037-2041 - - 4,143,888 1,648,287 7,248,807$ 2,076,706$ 2042-2046 - - 4,226,101 723,767 7,489,402$ 993,803$ 2047-2051 - - 1,033,785 75,165 4,463,548$ 178,741$ Total 23,620,000$ 4,368,198$ 17,448,408$ 10,930,982$ 70,086,781$ 21,187,733$ Due within one year 1,436,000$ 562,965$ 246,639$ 817,586$ 3,783,852$ 1,980,599$ Due after one year 22,184,000 3,805,233 17,201,769 10,113,395 66,302,929 19,207,135 Total 23,620,000$ 4,368,198$ 17,448,408$ 10,930,982$ 70,086,781$ 21,187,733$ Business-type Activities Series 2020 Wastewater Refunding Bonds Series 2020B CalPERS Taxable Lease Revenue Bonds Total 2017 CalTrans Aeronautics Loan - Airport 2016 Water Revenue Refunding Bonds Lawsuit settlement liability Attachment 1 Page 696 of 858 Notes to the Basic Financial Statements City of Ukiah, California Financial Section: Other Required Supplementary Information Page | 60 Note 8 – Landfill Closure and Post Closure Costs State and federal laws and regulations require that the City place a final cover on its landfill when closed and perform certain maintenance and monitoring functions at the landfill site for thirty years after closure. In addition to operating expenses related to current activities of the landfill, an expense provision and related liability are being recognized based on the future closure and post closure care costs that will be incurred near or after the landfill no longer accepts waste. The recognition of these landfill closure and post closure care costs is based on the amount of landfill used during the year. The estimated liability for landfill closure and post closure care costs has a balance of $19,297,593 (including $1,001,863 for corrective action liability) as of June 30, 2021, which is based on 100.0 percent usage (filled) of the landfill. This estimated total current cost of the landfill closure and post closure care is based on the amount that would be paid if all equipment, facilities, and services required to close, monitor, and maintain the landfill were acquired as of June 30, 2021, as determined by the last engineering study performed. However, the actual cost of closure and post closure care may change due to inflation, changes in technology, or changes in landfill laws and regulations. The City is required by state and federal laws and regulations to make annual contributions to finance closure and post closure care. The City follows these requirements, and at June 30, 2021, held $9,759,265 in cash and receivables designated for these purposes, $9,650,782 of which within its pooled investments. The City has made a pledge of future service revenues for anticipated remaining expected costs, future inflation costs, and any additional costs that might arise from changes in post closure requirements (due to changes in technology or more rigorous environmental regulations, for example). Note 9 - Interfund Transactions and Interfund Borrowing With City Council approval through the budget process, resources may be transferred from one City fund to another. One of the primary purposes of transfers is to provide a subsidy from one fund to another. Transfers may also be used to provide resources from one fund to another for significant capital projects or to accumulate resources for debt service. Transfers between funds during the fiscal year 2021 were as follows: Transfers Out General Fund Streets Capital Improvement Non-major Governmental Funds Non-major Enterprise Funds Landfill Water Total General fund -$ 3,662,605$ -$ 25,328$ -$ -$ 3,687,933$ Streets capital improvement - - 478,156 - - - 478,156 Non-major governmental funds 129,001 - - - 419,635 - 548,636 Electric enterprise - - - 200,000 - - 200,000 Wastewater enterprise - - - - - 273,375 273,375 Total 129,001$ 3,662,605$ 478,156$ 225,328$ 419,635$ 273,375$ 5,188,100$ Transfers In Significant transfers included $3.6 million from the general fund to the Streets Capital Improvement fund representing Measure Y proceeds committed by the City Council dedicated to specific capital projects and $419 thousand from the Transfer Station Fund to the Landfill Fund for capital improvements. The remaining transfer of funds represent one-time transfers related to special projects. Pursuant to the City’s debt management policy, interfund loans are recorded for the purposes of financing operations, grant activities, or capital projects on a temporary basis. Attachment 1 Page 697 of 858 Notes to the Basic Financial Statements City of Ukiah, California Financial Section: Other Required Supplementary Information Page | 61 Note 9 - Interfund Transactions and Interfund Borrowing (Continued) Amounts recorded as due to/from are for the purposes of providing temporary cash flow to funds, most notably between operating periods. Examples of this include cash provided by the General Fund to a grant fund to financing expenditure driven grant activities. When the grantor reimburses the City for those activities, the interfund borrowing is revered, i.e. the General Fund is paid back. This type of transaction is approved and executed by the Finance Director when needed per the City’s debt management policy. Amounts recorded as advances from/to are longer-term interfund borrowing for the purposes of providing cash flow for activities with operational conditions requiring a longer repayment period. Such borrowing is approved by the City Council per policy. Interfund Borrowing and Internal Balances Fund Name Amount Fund Name Amount Gas Tax 145,000$ General Fund 145,000$ Riverside Park 66,500 General Fund 66,500 Conference Center 27,500 General Fund 27,500 Winter Special Events 12,657 General Fund 12,657 1998 STIP Augmentation 3,765 General Fund 3,765 Downtown Business Improvement 2,838 General Fund 2,838 Airport 420,000 General Fund 420,000 678,260 678,260 Fund Name Amount Fund Name Amount Golf Fund 930,200 General Fund 930,200 Water Fund 716,578 Golf Fund 716,578 Building Maintenance 640,000 General Fund 640,000 Building Maintenance 545,045 Utility Billing 545,045 Street Lighting 186,270 Electric Fund 186,270 Rail Trail 146,661 General Fund 146,661 Swimming Pool 136,349 General Fund 136,349 Conference Center 56,595 General Fund 56,595 Parking District 54,136 General Fund 54,136 ARRC 49,601 General Fund 49,601 3,461,435 3,461,435 4,139,695$ 4,139,695$ Borrowing Fund (Advances From)Lending Fund (Advances To) Borrowing Fund (Due To)Lending Fund (Due From) Attachment 1 Page 698 of 858 Notes to the Basic Financial Statements City of Ukiah, California Financial Section: Other Required Supplementary Information Page | 62 Note 10 - Risk Management The City is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors and omissions; and natural disasters for which the City participates The City is a member of the Redwood Empire Municipal Insurance Fund (REMIF), a public entity pool comprised of fifteen northern California charter and associate member cities. REMIF is organized under a Joint Powers Agreement pursuant to the California Government Code. The purpose of REMIF is to arrange and administer programs of insurance for the pooling of self-insured losses and to purchase excess insurance coverage. The City pays an annual premium to REMIF for its workers’ compensation, general liability and property coverage. The City of Ukiah participates in the following three REMIF programs: General Liability Insurance Annual premiums are paid by the member cities and are adjusted retrospectively to cover costs. The City of Ukiah self-insures for the first $25,000 of each loss and pays 100 percent of all losses incurred under $25,000. The City does not share or pay for losses of other cities under $5,000, depending on the entity’s deductible amount. Participating cities then share in the next $5,000 to $750,000 per loss occurrence. Specific coverage includes comprehensive and general automotive liability, personal injury, contractual liability, professional liability, and certain other coverage. REMIF is a member of the California Joint Powers Risk Management Authority, which provides REMIF with an additional $39,250,000 liability insurance coverage over and above REMIF retention level of $750,000. Worker’s Compensation Periodic deposits are paid by member cities and are adjusted retrospectively to cover costs. The City of Ukiah is self-insured for the first $10,000 of each loss and pays 100 percent of all losses incurred under $10,000. The City does not share or pay for losses of other cities under $5,000. Property Insurance The City participates in REMIF’s property insurance program. The annual deposits paid by participating member cities are based upon deductibility levels and are not subject to retroactive adjustments. The City of Ukiah has a deductible level of $500,000 for high risk flood zones and $100,000 for all wildfire and property related claims, and a coverage limit of $400,000,000 declared value. Separate internal service funds are maintained by the City for the City’s deductibles and allocated share of pooled costs noted above. The total cash and investments held in these funds at June 30, 2021, was $383,075. On March 22, 2018, the REMIF Board approved assessment for the following programs to be collected beginning in the 2018/2019 fiscal year: • Workers’ Compensation - $6 million to be collected over 6 years. • Liability program - $2.5 million to be collected over 5 years. Of those amounts the City of Ukiah was liable for $860,916 and $247,915 to be paid over 6 and 5 years, for the Workers’ Compensation and Liability program, respectively for a total of $1,108,831. Attachment 1 Page 699 of 858 Notes to the Basic Financial Statements City of Ukiah, California Financial Section: Other Required Supplementary Information Page | 63 Note 10 - Risk Management (Continued) Changes in the Internal Service Funds claims liabilities amounts in fiscal year 2021 and 2020 were as follows: 2021 2020 B alance, beginning of the fiscal year 722,693$ 915,762$ Claims and adjustments - - Claims payments (193,069) (193,069) Balance, end of the fiscal year 529,624$ 722,693$ The remaining balance of $529,624 as of June 30, 2021 is detailed in Note 7. In the past three years, no claims for general liability or workers’ compensation have exceeded the City’s purchased insurance coverage. In accordance with the REMIF governing documents, REMIF Board has the authority to levy a cash assessment for any pooled coverage program on the Participating member. REMIF’s overall equity balance was $3.1 million as of June 30, 2020. Risks Management Coverage Amount Coverage Provider Payment Source General Liability Claims: $0-25,000 Self-insured Retention City funds 25,001-40,000,000 California Joint Powers Risk Management Authority Shared risk pool Workers Compensation Claims: $0-10,000 Self-insured Retention City funds 10,001-750,000 (Non-Safety) 1,000,000 (Safety) Commercial Re-insurance Shared risk pool 1,000,001-20,000,000 Commercial Reinsurance Shared risk pool Property Liability Claims: Claims other than High Risk Flood Claims: $0-100,000 Deductible City funds 100,001-100,000,000 REMIF Coverage of Declared Value Shared risk pool 1,000,000-400,000,000 California Joint Powers Risk Management Authority Shared risk pool High Risk Flood Claims: $0-500,000 Deductible City funds 500,001-100,000,000 California Joint Powers Risk Management Authority Shared risk pool Attachment 1 Page 700 of 858 Notes to the Basic Financial Statements City of Ukiah, California Financial Section: Other Required Supplementary Information Page | 64 Note 10 - Risk Management (Continued) The following is a summary of the most recent audited financial statements of REMIF as of and for the fiscal year ended June 30, 2020: REMIF Equity Total assets 34,311,556$ Total deferred outflows of resources 659,939 Total liabilities 31,672,831 To deferred inflow of resources 185,787 Members' equity 3,112,877$ Net operating revenues 29,710,466$ Total operating expenses 28,800,927 Operating income (loss)909,539$ REMIF issues a separate Annual Comprehensive financial report, which for June 30, 2021 was not available at the time of publication of the City’s Annual Comprehensive report. Copies of that report may be obtained from REMIF at Post Office Box 885, Sonoma, California 95476. Note 11 - Public Employee Retirement Plan Plan Description All qualified permanent and probationary employees are eligible to participate in the Public Agency Cost-Sharing Multiple-Employer Defined Benefit Pension Plan (the Plan), administered by the California Public Employees’ Retirement System (CalPERS). The Plan’s benefit provisions are established by statute. The Plan is included as a pension trust fund in the CalPERS Annual Comprehensive Financial Report, which is available online at www.calpers.ca.gov. The Plan consists of a miscellaneous pool and a safety pool (referred to as “risk pools”), which are comprised of individual employer miscellaneous and safety rate plans, respectively, including those of the City of Ukiah. The City of Ukiah does not have any rate plans in the miscellaneous risk pool. The City of Ukiah's employer rate plans in the safety risk pool include the Safety Fire plan (Fire), the Safety Police plan (Police), the PEPRA Safety Fire plan (PEPRA Safety Fire) and the PEPRA Safety Police plan (PEPRA Police). Benefits Provided The Plan provides service retirement and disability benefits, annual cost of living adjustments and death benefits to plan members, who must be public employees and beneficiaries. Benefits are based on years of credited service, equal to one year of full-time employment. Classic members and PEPRA Safety members with five years of total service are eligible to retire at age 50 with statutorily reduced benefits. PEPRA Miscellaneous members with five years of total service are eligible to retire at age 52 with statutorily reduced benefits. All members are eligible for non-duty disability benefits after five years of service. The death benefit is the Basic Death Benefit. The cost of living adjustments for each plan are applied as specified by the Public Employees’ Retirement Law. Attachment 1 Page 701 of 858 Notes to the Basic Financial Statements City of Ukiah, California Financial Section: Other Required Supplementary Information Page | 65 Note 11 – Public Employee Retirement Plan (Continued) General Information about the Pension Plans - Safety The Plans’ provisions and benefits in effect at June 30, 2021, are summarized as follows: Employer Rate Plans in the Safety Risk Pool Employer rate plan Fire Police PEPRA Fire PEPRA Police Hire Date Prior to January 01, 2013 Prior to January 01, 2013 On or after January 01, 2013 On or after January 01, 2013 Benefit formula 3.0% @ 55 3.0% @ 50 2.7% @ 57 2.7% @ 57 Benefit vesting schedule 5 years of service 5 years of service 5 years of service 5 years of service Benefit payments Monthly for life Monthly for life Monthly for life Monthly for life Retirement age 50 50 50 50 Monthly benefits, as of % of eligible compensation 2.4% to 3.0% 3.0% 2.0% to 2.7% 2.0% to 2.7% Required employee contribution rates 8.987% 8.99% 13.75% 13.75% Required employer contribution rates 23.558% 25.54% 13.884% 13.884% Contributions Section 20814(c) of the California Public Employees’ Retirement Law requires that the employer contribution rates for all public employers be determined on an annual basis by the CalPERS actuary and shall be effective on the July 1 following notice of a change in the rate. Contribution rates for the employer rate plans are determined through the CalPERS’ annual actuarial valuation process. Each employer rate plan’s actuarially determined rate is based on the estimated amount necessary to pay the employer rate plan’s allocated share of the cost of benefits earned by employees during the year, and any unfunded accrued liability. The City of Ukiah is required to contribute the difference between the actuarially determined rate and the contribution rate of employees. The City of Ukiah’s contributions to the risk pools in the Plan for the year ended June 30, 2021, were as follows: Contributions Miscellaneous Risk Pool $ - Safety Risk Pool 15,338,474 Total contributions $15,338,474 Pension Liabilities, Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions As of June 30, 2021, City of Ukiah reported net pension liabilities for its proportionate shares of the net pension liability of each risk pool as follows: Attachment 1 Page 702 of 858 Notes to the Basic Financial Statements City of Ukiah, California Financial Section: Other Required Supplementary Information Page | 66 Proportionate Share of Net Pension Liability Miscellaneous Risk Pool $ - Safety Risk Pool $19,556,573 Total net pension liability $19,556,573 * The proportionate share of the total NPL to each of the enterprise and internal service funds is not being allocated because it is deemed to have an immaterial effect on the financial statements. The City of Ukiah’s net pension liability for each risk pool is measured as the proportionate share of each risk pool’s net pension liability. GASB 68 indicates that to the extent different contribution rates are assessed based on separate relationships that constitute the collective net pension liability, the determination of the employer’s proportionate share of the collective net pension liability should be made in a manner that reflects those relationships. The allocation method used by CalPERS to determine each employer’s proportionate share reflects those relationships through the employer rate plans they sponsor within the respective risk pools. An actuarial measurement of the employer’s rate plan liability and asset- related information are used where available, and proportional allocations of individual employer rate plan amounts as of the valuation date are used where not available. The City of Ukiah’s proportionate share percentage of the net pension liability for each risk pool as of June 30, 2020, measurement date, was calculated as follows: Each risk pool’s total pension liability was computed at the measurement date, June 30, 2020, by applying standard actuarial roll-forward methods to the total pension liability amounts as of the valuation date. The fiduciary net position for each risk pool at the measurement date was determined by CalPERS’ Financial Office. The net pension liability for each risk pool at June 30, 2020, was computed by subtracting the respective risk pool’s fiduciary net position from its total pension liability. The individual employer risk pool’s proportionate share percentage of the total pension liability and fiduciary net position as of June 30, 2020, was calculated by applying City of Ukiah’s proportionate share percentage as of the valuation date (described above) to the respective risk pool’s total pension liability and fiduciary net position as of June 30, 2020, to obtain the total pension liability and fiduciary net position as of June 30, 2020. The fiduciary net position was then subtracted from total pension liability to obtain the net pension liability as of the measurement date. The City of Ukiah’s proportionate share percentage of the net pension liability for each risk pool as of June 30, 2019, and June 30, 2020, was as follows: Safety Risk Pool Proportion at measurement date – June 30, 2019 0.290879% Proportion at measurement date – June 30, 2020 0.293539% 0.002660% Attachment 1 Page 703 of 858 Notes to the Basic Financial Statements City of Ukiah, California Financial Section: Other Required Supplementary Information Page | 67 Note 11 – Public Employee Retirement Plan (Continued) For the year ended June 30, 2021, the City of Ukiah recognized pension expense of $3,551,524. At June 30, 2021, the City of Ukiah reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: Deferred Outflows of Resources Deferred Inflows of Resources Differences between Expected and Actual Experience $1,440,569 - Changes of Assumptions - (62,099) Net Difference between Projected and Actual Earnings on Pension Plan Investments 381,042 - Adjustment due to Differences in Proportions 183,386 (10,509) Differences between Actual and Required Contributions - (355,064) Contributions after Measurement Date 15,338,474 - Total $17,343,471 ($427,672) Amounts other than contributions subsequent to the measurement date reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized as pension expense as follows: Measurement Date June 30: Deferred Outflows/(Inflows) of Resources 2021 $361,035 2022 593,503 2023 428,032 2024 194,755 2025 - Total $1,577,325 Attachment 1 Page 704 of 858 Notes to the Basic Financial Statements City of Ukiah, California Financial Section: Other Required Supplementary Information Page | 68 Note 11 – Public Employee Retirement Plan (Continued) Actuarial Assumptions The total pension liabilities in the June 30, 2019 actuarial valuations were determined using the following actuarial assumptions: Safety Valuation Date June 30, 2019 Measurement Date June 30, 2020 Actuarial Cost Method Entry Age Normal Actuarial Assumptions: Discount Rate 7.15% Inflation 2.50% Payroll Growth 2.75% Projected Salary Increase (1) Varies by Age & Length of Service Investment Rate of Return (2) 7.00% Mortality Rate Table (3) Derived Using CalPERS’ Membership Data for all Funds (1) Depending on age, service and type of employment (2) Net of Pension Plan Investment and Administrative Expenses; includes Inflation (3) The mortality table used was developed based on CalPERS-specific data. The table includes 20 years of mortality improvements using Society of Actuaries Scale BB. For more details on this table, please refer to the April 2014 experience study report (based on CalPERS demographic data from 1997 to 2011) available online at https://www.calpers.ca.gov/docs/forms-publications/calpers-experience-study-2014.pdf. Discount Rate The discount rate used to measure the total pension liability was 7.15%. To determine whether the municipal bond rate should be used in the calculation of a discount rate for the Plan, CalPERS stress tested employer rate plans within the Plan that would most likely result in a discount rate that would be different from the actuarially assumed discount rate. Based on the testing, none of the tested employer rate plans run out of assets. Therefore, the current 7.15% discount rate is adequate and the use of the municipal bond rate calculation is not necessary. The stress test results are presented in a detailed report, GASB Statements 67 and 68 Crossover Testing Report for Measurement Date June 30, 2020 based on June 30, 2019 Valuations, that can be obtained from the CalPERS website. According to Paragraph 30 of GASB 68, the long-term discount rate should be determined without reduction for pension plan administrative expense. For the CalPERS Plan, the 7.00% investment return assumption used in this accounting valuation is net of administrative expenses. Administrative expenses are assumed to be 15 basis points. An investment return excluding administrative expenses would have been 7.15%. Using this lower discount rate has resulted in a slightly higher total pension liability and net pension liability. CalPERS checked the materiality threshold for the difference in calculation and did not find it to be a material difference. Attachment 1 Page 705 of 858 Notes to the Basic Financial Statements City of Ukiah, California Financial Section: Other Required Supplementary Information Page | 69 Note 11 – Public Employee Retirement Plan (Continued) In the December 2016 and April 2017 meetings, the Board voted to lower the funding discount rates used for the PERF. In making its decision, the Board reviewed recommendations from CalPERS team members, external pension and investment consultants, and input from employer and employee stakeholder groups. A lowered funding discount rate for the PERF will be phased in over a three-year period beginning July 1, 2018 for public agencies and school districts. The long-term expected rate of return on pension plan investments was determined using a building-block method in which best-estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class. In determining the long-term expected rate of return, CalPERS considered both short- term and long-term market return expectations as well as the expected pension fund cash flows. Such cash flows were developed assuming that both members and employers will make their required contributions on time and as scheduled in all future years. Using historical returns of all the Plan’s asset classes, expected compound (geometric) returns were calculated over the short-term (first 11 years) and the long-term (60 years) using a building-block approach. Using the expected nominal returns for both short-term and long- term, the present value of benefits was calculated for the Plan. The expected rate of return was set by calculating the single equivalent expected return that arrived at the same present value of benefits for cash flows as the one calculated using both short-term and long-term returns. The expected rate of return was then set equivalent to the single equivalent rate calculated above and rounded down to the nearest one quarter of one percent. The table below reflects the long-term expected real rate of return by asset class. The rate of return was calculated using the capital market assumptions applied to determine the discount rate and asset allocation. These geometric rates of return are net of administrative expenses. Asset Class New Strategic Allocation Real Return Years 1-10(a) Real Return Years 11+(b) Global Equity 50.0% 4.8% 5.98% Fixed Income 28.0 1.0 2.62 Inflation Assets 0.0 0.77 1.81 Private Equity 8.0 6.3 7.23 Real Assets 13.0 3.75 4.93 Liquidity 1.0 0.0 (0.92) (a) An expected inflation of 2.0% used for this period. (b) An expected inflation of 2.92% used for this period. Attachment 1 Page 706 of 858 Notes to the Basic Financial Statements City of Ukiah, California Financial Section: Other Required Supplementary Information Page | 70 Note 11 – Public Employee Retirement Plan (Continued) Sensitivity of the City of Ukiah’s Proportionate Share of the Net Pension Liability to Changes in the Discount Rate The following presents the City of Ukiah’s proportionate share of the net pension liability of each risk pool as of the measurement date, calculated using the discount rate, as well as what the City of Ukiah’s proportionate share of the net pension liability would be if it were calculated using a discount rate that is 1 percentage-point lower or 1 percentage-point higher than the current rate: Discount Rate -1% (6.15%) Current Discount Rate (7.15%) Discount Rate +1% (8.15%) City of Ukiah’s proportionate share of the Safety Risk Pool’s net pension liability $28,817,906 $19,556,573 $11,956,773 General Information about the Pension Plans - Miscellaneous Plan Descriptions – All qualified permanent and probationary employees are eligible to participate in the City’s separate Miscellaneous Plan, an agent multiple-employer defined benefit pension plan administered by the California Public Employees’ Retirement System (CalPERS), which acts as a common investment and administrative agent for its participating member employers. Benefit provisions under the Plan are established by State statute and Local Government resolution. CalPERS issues publicly available reports that include a full description of the pension plans regarding benefit provisions, assumptions and membership information that can be found on the CalPERS website. Benefits Provided – The Plan is an agent multiple-employer defined benefit pension plan administered by the California Public Employees’ Retirement System (CalPERS). A full description of the pension plan regarding number of employees covered, benefit provisions, assumptions (for funding purposes but not accounting purposes), and membership information are listed in the plan’s June 30, 2019 Annual Actuarial Valuation Report. Details of the benefits provided can be obtained in Appendix B of the actuarial valuation report. This report is a publicly available valuation report that can be obtained at CalPERS’ website under Forms and Publications. The Plan’s provisions and benefits in effect at June 30, 2021, are summarized as follows: Attachment 1 Page 707 of 858 Notes to the Basic Financial Statements City of Ukiah, California Financial Section: Other Required Supplementary Information Page | 71 Note 11 – Public Employee Retirement Plan (Continued) Employees Covered – At June 30, 2021, the following employees were covered by the benefit terms for the Plan: Benefits Provided Hire Date On or after January 1, 2013 Benefit formula Benefit vesting schedule Retirement age Monthly benefits as a % of eligible compensation Retired employee contribution rates Required employer contribution rates 55 62 Miscellaneous Prior to January 31, 2013 2.7% @ 55 2% @ 62 5 years service Depending on years of service 8.00%7.00% 12.859%6.750% Employees Covered by Plan Inactive employees of beneficiaries currently receiving benefits 190 Inactive employees entitled to but not yet receiving benefits 141 Active employees 149 Contributions – Section 20814(c) of the California Public Employees’ Retirement Law (PERL) requires that the employer contribution rates for all public employers be determined on an annual basis by the actuary and shall be effective on the July 1 following notice of a change in the rate. The total plan contributions are determined through CalPERS’ annual actuarial valuation process. The actuarially determined rate is the estimated amount necessary to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. The employer is required to contribute the difference between the actuarially determined rate and the contribution rate of employees. Employer contribution rates may change if plan contracts are amended. It is the responsibility of the employer to make necessary accounting adjustments to reflect the impact due to any Employer-Paid Member Contributions or situations where members are paying a portion of the employer contribution. Net Pension Liability The City’s net pension liability for the Plan is measured as the total pension liability, less the pension plan’s fiduciary net position. The net pension liability of the Plan is measured as of June 30, 2020, using an annual actuarial valuation as of June 30, 2019 rolled forward to June 30, 2020 using standard update procedures. A summary of principal assumptions and methods used to determine the net pension liability is shown below. Attachment 1 Page 708 of 858 Notes to the Basic Financial Statements City of Ukiah, California Financial Section: Other Required Supplementary Information Page | 72 Note 11 – Public Employee Retirement Plan (Continued) Actuarial Assumptions Miscellaneous Valuation date 6/30/2019 Measurement 6/30/2020 Actuarial cost method Entry-age normal Discount rate 7.15% Inflation 2.50% Projected salary increase Varies by age and length of service Mortality (1)Derived from CalPERS membership data for all funds (1) The mortality table used was developed based on CalPERS specific data. The probabilities of mortality are based on the 2017 CalPERS Experience Study for the period from 1997 to 2015. Pre-retirement and post-retirement mortality rates include 15 years of projected mortality improvement using 90% of Scale MP-2016 published by the Society of Actuaries. For more details on this table, please refer to the CalPERS Experience Study and Review of Actuarial Assumptions report form December 2017 that can be found on the CalPERS website. Actuarial Assumptions – The total pension liabilities in the June 30, 2020 actuarial valuations were determined using the following actuarial assumptions: Discount Rate – The discount rate used to measure the total pension liability is 7.15 percent. The projection of cash flows used to determine the discount rate assumed that contributions from plan members will be made at the current member contribution rates and that contributions from employers will be made at statutorily required rates, actuarially determined. Based on those assumptions, the Plan’s fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on plan investments was applied to all periods of projected benefit payments to determine the total pension liability. Long Term Expected Rate of Return – The long-term expected rate of return on pension plan investments was determined using a building-block method in which expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class. This area intentionally left blank. Attachment 1 Page 709 of 858 Notes to the Basic Financial Statements City of Ukiah, California Financial Section: Other Required Supplementary Information Page | 73 Note 11 – Public Employee Retirement Plan (Continued) In determining the long-term expected rate of return, CalPERS took into account both short-term and long-term market return expectations as well as the expected pension fund cash flows. Using historical returns of all of the funds’ asset classes, expected compound (geometric) returns were calculated over the short-term (first 10 years) and the long-term (11+ years) using a building-block approach. Using the expected nominal returns for both short-term and long-term, the present value of benefits was calculated for each fund. The expected rate of return was set by calculating the rounded single equivalent expected return that arrived at the same present value of benefits for cash flows as the one calculated using both short-term and long-term returns. The expected rate of return was then set equal to the single equivalent rate calculated above and adjusted to account for assumed administrative expenses. The expected real rates of return by asset class are as followed: . Asset Class (1) Assumed Asset Allocation Real Return Years 1-10(2) Real Return Years 11+(3) Global Equity 50.0% 4.80% 5.98% Fixed Income 28.0 1.00 2.62 Inflation Assets - 0.77 1.81 Private Equity 8.0 6.30 7.23 Real Assets 13.0 3.75 4.93 Liquidity 1.0 - (0.92) (1) In the System’s CAFR, Fixed Income is included in Global Debt Securities; Liquidity is included in Short-term Investments; Inflation Assets are included in both Global Equity Securities and Global Debt Securities. (2) An expected inflation of 2.0% used for this period. (3) An expected inflation of 2.92% used for this period. This area intentionally left blank. Attachment 1 Page 710 of 858 Notes to the Basic Financial Statements City of Ukiah, California Financial Section: Other Required Supplementary Information Page | 74 Note 11 – Public Employee Retirement Plan (Continued) Changes in Net Pension Liability The changes in the Net Pension Liability for the Miscellaneous Plan recognized over the measurement period. Total Pension Liability (a) Plan Fiduciary Net Position (b) Net Pension Liability/(Asset) (a)-(b) Balance at June 30, 2019 95,042,257$ 59,846,891$ 35,195,366$ Beginning of Year Adjustment - - - Adjusted Balance at June 30, 2019 95,042,257$ 59,846,891$ 35,195,366$ Changes Recognized for the Measurement Period: Service Cost 1,935,834 1,935,834 Interest on Total Pension Liability 6,746,742 6,746,742 Changes of Benefit Terms - - Changes of Assumptions - - Differences Between Expected and Actual Experience 783,147 783,147 Net Plan to Plan Resource Movement - - - Contribution - Employer - 3,591,800 (3,591,800) Contribution - Employees - 852,263 (852,263) Net Investment Income - 2,998,613 (2,998,613) Benefits Payments, Including Refunds of Employee Contributions (4,866,568) (4,866,568) - Administrative Expense - (84,369) 84,369 Other Miscellaneous Income (Expense)- - - Net Changes During 2019-20 4,599,155 2,491,739 2,107,416 Balance at June 30, 2020 99,641,412$ 62,338,630$ 37,302,782$ Sensitivity of the Net Pension Liability to Changes in the Discount Rate - The following presents the net pension liability of the Plan as of the measurement date, calculated using the discount rate of 7.15 percent, as well as what the net pension liability would be if it were calculated using a discount rate that is 1 percentage point lower (6.15 percent) or 1 percentage-point higher (8.15 percent) than the current rate: Discount Rate -1% Discount Rate Discount Rate +1% 6.15%7.15%8.15% Plan's Net Pension Liability/(Asset)50,026,879$ 37,302,782$ 26,728,057$ Pension Plan Fiduciary Net Position – Detailed information about each pension plan’s fiduciary net position is available in the separately issued CalPERS financial reports. Attachment 1 Page 711 of 858 Notes to the Basic Financial Statements City of Ukiah, California Financial Section: Other Required Supplementary Information Page | 75 Note 11 – Public Employee Retirement Plan (Continued) Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions For the year ended June 30, 2021, the City recognized pension expense for the Miscellaneous Plan of $5,103,809. At June 30, 2021, the City reported deferred outflows of resources and deferred inflows of resources for the Miscellaneous Plan from the following sources: Deferred Outflows of Resources Deferred Inflows of Resources Pension contributions subsequent to measurement date 34,602,386$ -$ Changes of assumptions - (17,558) Difference between actual and expected experience 1,283,571 Net differences between projected and actual earnings on plan investments 456,795 Total 36,342,752$ (17,558)$ $34,602,386 reported as deferred outflows of resources related to contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ended June 30, 2022. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized as pension expense as follows: Measurement Periods Ended June 30: Deferred Outflows/(Inflows) of Resources 2021 658,246$ 2022 459,356 2023 354,671 2024 250,535 2025 - Therefore - Payable to the Pension Plan At June 30, 2021, the City reported a payable of $ -0- for the outstanding amount of contributions to the pension plan required for the year ended June 30, 2021. Total pension expense for both plans was $3,551,524 for Safety and $5,103,809 for Misc. Attachment 1 Page 712 of 858 Notes to the Basic Financial Statements City of Ukiah, California Financial Section: Other Required Supplementary Information Page | 76 Note 12 – Related Organizations The City is a member of various joint powers authorities that provide goods or services to the City and other authority members. Under the criteria established by GASB-14, the City does not have enough authority, influence or accountability over these entities to incorporate them in this annual report. Additionally, the City has determined that it has no ongoing financial interest or responsibility for any of these organizations as defined by GASB-14. The names and general functions of these joint powers are as follows: Northern California Power Agency (NCPA) NCPA has 14 members including municipal electric utilities, a port authority, an irrigation district, a public utility district, a transportation district; and one associate member entity. The NCPA is generally empowered to purchase, generate, transmit, distribute, and sell electrical energy. Members participate in the projects of the Agency on an elective basis. A Commission comprised of one representative for each member governs the NCPA. The City is currently involved in several hydroelectric, geothermal and other energy related projects as a member of this agreement. The NCPA is financed by contributions from member cities, government grants and debt. The City is committed to provide substantial additional financial support for its portion of the actions and projects of the NCPA. During the year ended June 30, 2021, the City paid $8,917,121 to the NCPA for power supplied by the agency. The NCPA holds certain funds under a separate member custodial agreement - the general operating reserve. The purpose of the reserve is to allow members to fund all, or a portion, of the contingent liabilities that the NCPA faces at any given time, while providing the individual member with the flexibility to draw upon their part of the reserve, as each member individually deems appropriate. At June 30, 2021, the City's balance held in the reserve was $7,749,546, of which $251,126 is restricted for NCPA OPS/Security accounts. Due to the nature of the reserve held by NCPA, the reserve is recorded as an asset in the Electric Fund as Investment in NCPA reserve. Mendocino Transit Authority This Agency consists of four Mendocino County cities and the County of Mendocino. The Agency was created to apply for and receive Transportation Development Act, Urban Mass Transportation Act, and other funds as a public transportation operator and to provide public transportation services within Mendocino County. Its activities are primarily financed from fare box revenue and federal and state government grants. A Board of Directors comprised of one member from each city and three members that are appointed by the Mendocino County Board of Supervisors governs the Authority. Redwood Empire Financing Authority (REFA) This is an agreement between seven Northern California cities. The Authority is authorized to acquire, through lease purchase, installment sale agreements, or otherwise such property necessary or convenient for the operation of the member cities. A Commission comprised of one member appointed by each member city administers the Authority. As explained previously, the City has entered into various financing arrangements with REFA. Attachment 1 Page 713 of 858 Notes to the Basic Financial Statements City of Ukiah, California Financial Section: Other Required Supplementary Information Page | 77 Note 12 – Related Organizations (continued) Redwood Empire Municipal Insurance Fund (REMIF) A group of Northern California cities participate in this agreement to provide themselves with various levels of liability, property and worker's compensation insurance. A Commission comprised of one member appointed by each member city administers the Authority. As explained previously, the City provides for its general and workers’ compensation insurance needs through REMIF. Annual premiums paid to the Authority were $2,482,861. During the year, the City received no distribution from REMIF’s liability insurance program. Transmission Agency of Northern California (TANC) Members include ten cities, one electric co-op, two irrigation districts, and two public utility districts. The Agency was created to provide electric transmission or other facilities, including real property and rights of way, for the use of its members. A Commission comprised of one representative appointed by each member governs the Agency. The City has authorized its participation in the project up to one percent (1 percent) of the total. Mendocino Solid Waste Management Authority (MSWMA) This Authority consists of three Mendocino County cities and the County of Mendocino. The Agency was created for the purpose of: (a) siting, licensing, developing, constructing, maintaining, and operating disposal sites and sanitary landfills and (b) preparing and implementing a solid waste management plan. A Commission comprised of one member from each city and two members that are appointed by the Mendocino County Board of Supervisors governs the Authority. Note 13 - Commitments and Contingencies Grants and Allocations The City receives funding from several federal, state and local grant programs, principally Community Development Block Grants (CDBG). These programs are subject to financial and compliance review by grantors. Expenditures, if any, which may be disallowed by the granting agencies, cannot be determined at this time. The City does not expect the undeterminable amounts of disallowed expenditures, if any, to materially affect the financial statements. Receipt of these federal, state and local grant revenues is not assured in the future. Construction commitments. The government has active construction projects as of June 30, 2021. The projects include street reconstruction and rehabilitation, airport and utility infrastructure improvements. At year end the government’s significant commitments with contractors were as follows: Construction Commitments Project Spent to Date Remaining Commitment Downtown Streetscape & Road Diet 5,600,925$ 2,137,862$ Downtown Streetscape & Road Diet - Utilities 4,757,364$ 544,894$ Council Chambers and Conference Rooms A/V Upgrade 309,270.72$ 5,228$ Museum Roof Replacement Project 391,589$ 49,517$ State Street Undergrounding Project 1,051,522.72$ 83,329$ Replacement of 100k Gallon PZ2S Water Tank 705,315.98$ 235,003$ Pedestrian Improvement Project -$ 46,468$ Gobbi/Waugh Transportation Improvements Project 57,538$ 395,567$ Electric Service Center - Site Work 107,942$ 2,794,984$ Hydro-Electric SCADA Upgrade 66,642$ 287,160$ Attachment 1 Page 714 of 858 Notes to the Basic Financial Statements City of Ukiah, California Financial Section: Other Required Supplementary Information Page | 78 Note 13 – Commitments and Contingencies (continued) Encumbrances and related appropriation lapse at the end of the year but are re-appropriated and become part of the subsequent year’s budget because performance under the executory contract is expected in the next year. Encumbrances. Encumbrance accounting is utilized to the extent necessary to assure effective budgetary control and accountability and to facilitate effective cash planning and control. At year end the number of encumbrances expected to be honored upon performance by the vendor in the next year were as follows: Encumbrances Fund(s)Encumbrances General fund 1,279,842$ Streets Capital Improvements 1,407,329 Nonmajor governmental funds 2,166,875 Internal service funds 610,218 Landfill 195,603 Electric 3,511,931 Water 2,247,354 Wastewater 855,401 Nonmajor enterprise funds 234,847 Total 12,509,402$ Note 14 – Successor Agency Trust, Former Ukiah Redevelopment Agency On December 29, 2011, the California Supreme Court upheld Assembly Bill 1X 26 (“the Bill”) that provides for the dissolution of all redevelopment agencies in the State of California. This action impacted the reporting entity of the City of Ukiah that previously had reported a redevelopment agency within the reporting entity of the City as a blended component unit. The Bill provides that upon dissolution of a redevelopment agency, either the city or another unit of local government will agree to serve as the “successor agency” to hold the assets until they are distributed to other units of state and local government. On January 9, 2012, the City Council elected to become the Successor Agency for the former redevelopment agency in accordance with the Bill as part of City resolution number 2012- 04 Attachment 1 Page 715 of 858 Notes to the Basic Financial Statements City of Ukiah, California Financial Section: Other Required Supplementary Information Page | 79 Note 14 – Successor Agency Trust, Former Ukiah Redevelopment Agency (continued) After enactment of the law, which occurred on June 28, 2011, redevelopment agencies in the State of California cannot enter into new projects, obligations or commitments. Subject to the control of a newly established oversight board, remaining assets can only be used to pay enforceable obligations in existence at the date of dissolution (including the completion of any unfinished projects that were subject to legally enforceable contractual commitments). In future fiscal years, successor agencies will only be allocated revenue in the amount that is necessary to pay the estimated annual installment payments on enforceable obligations of the former redevelopment agency until all enforceable obligations of the prior redevelopment agency have been paid in full and all assets have been liquidated. Enforceable Obligations - Bonds The following is a summary of changes in long-term liabilities for the year ended June 30, 2021: Redevelopment Successor Private Purpose Trust Debt Service Activity Balance Balance Due Within June 30, 2020 Additions Reductions June 30, 2021 One Year Trust Activities: Series 2019A Tax Allocation Bonds 1,259,154 - 304,584 954,570 308,386 Series 2019B Taxable Tax Allocation Bonds 4,236,617 - 327,718 3,908,899 345,535 Total trust fund debt 5,495,771$ -$ 632,302$ 4,863,469$ 653,921$ Series 2019A Tax Allocation Bonds On December 12, 2019, the Successor Agency issued $1,259,154 in tax allocation bonds to refund the outstanding Series 2007 Tax Allocation Bonds. The bond series is comprised of $1,259,154 in serial bonds maturing December 1, 2023. The serial bonds require annual principal payments ranging from $304,584 to $326,621. The interest rate is 2.160%. Series 2019B Taxable Tax Allocation Bonds On December 12, 2019, the Successor Agency issued $4,236,617 in taxable tax allocation bonds to refund the outstanding Series 2011A and 2011B Tax Allocation Bonds. The bond series is comprised of $4,236,617 in serial bonds maturing on December 1, 2028. The serial bonds require annual principal payments ranging from $327,718 to $748,446. The interest rate is 2.960%. Attachment 1 Page 716 of 858 Notes to the Basic Financial Statements City of Ukiah, California Financial Section: Other Required Supplementary Information Page | 80 Note 14 – Successor Agency Trust, Former Ukiah Redevelopment Agency (continued) Future debt service for Fiduciary Activities at June 30, 2021, is as follows: Debt Service Schedule Redevelopment Successor Agency Year Ending June 30, Principal Interest Principal Interest Principal Interest 2022 308,386$ 17,287$ 345,535$ 110,588$ 653,921$ 127,875$ 2023 319,563 10,506 354,103 100,234 673,666 110,740 2024 326,621 3,529 374,509 89,451 701,130 92,980 2025 - - 717,252 73,293 717,252 73,293 2026 - - 748,446 51,601 748,446 51,601 2027-2031 - - 1,369,054 56,304 1,369,054 56,304 Total 954,570$ 31,322$ 3,908,899$ 481,471$ 4,863,469$ 512,793$ Due within one year 308,386$ 17,287$ 345,535$ 110,588$ 653,921$ 127,875$ Due after one year 646,184 14,035 3,563,364 370,883 4,209,548 384,918 Total 954,570$ 31,322$ 3,908,899$ 481,471$ 4,863,469$ 512,793$ Series 2019A Tax Allocation Bonds Series 2019B Taxable Tax Allocation Bonds Total This area intentionally left blank. Attachment 1 Page 717 of 858 Notes to the Basic Financial Statements City of Ukiah, California Financial Section: Other Required Supplementary Information Page | 81 Note 15 – New Pronouncements The Governmental Accounting Standards Board has issued the following Statements, which may affect the City’s financial reporting requirements in the future: GASB 87 – Leases: This Statement requires recognition of certain lease assets and liabilities for leases that previously were classified as operating leases and recognized as inflows of resources or outflows of resources based on the payment provisions of the contract. It establishes a single model for lease accounting based on the foundational principle that leases are financings of the right to use an underlying asset. The requirements of this Statement are effective for reporting periods beginning after December 15, 2021. GASB 91 – Conduit Debt Obligations: The primary objectives of this Statement are to provide a single method of reporting conduit debt obligations by issuers and eliminate diversity in practice associated with (1) commitments extended by issuers, (2) arrangements associated with conduit debt obligations, and (3) related note disclosures. The requirements of this Statement are effective for reporting periods beginning after December 15, 2021. This area intentionally left blank. Attachment 1 Page 718 of 858 Notes to the Basic Financial Statements City of Ukiah, California Financial Section: Other Required Supplementary Information Page | 82 Note 16 – Service Contracts The City has entered into several agreements to provide services to the citizens of the City and surrounding areas. The general purpose and description of these contract agreements are as follows: Joint Venture for Valley-Wide Fire Protection Services The City has entered into an agreement with the Ukiah Valley Fire District (“UVFD”) to provide firefighting, emergency medical response and hazardous material response services within the corporate limits of the City. For the year ended June 30, 2021, the City paid $387,757 under the terms of the agreement. Under the terms of the agreement, entered July 1, 2018, the City provides fulltime and temporary fire personnel and use of City fire engines, rolling stock and related equipment to the UVFD, as well as making City facilities available to the UVFD. Fire personnel will remain employees of the City, and the City will continue to own all the equipment and facilities affected by the agreement. The City will be responsible for day-to-day management and administration. The City will share in the cost for the employment of the Fire Chief, as well as certain fixed and reimbursable costs. Golf Course Maintenance and Operations The City has entered into a leasing agreement with Tayman Park Golf Group, Inc. (“Lessee”) to operate, manage, repair and maintain the City’s municipal golf course. The lease includes the 18-hole golf course, clubhouse, and shared usage of City equipment. The Lessee is responsible to provide all services, maintenance, and administration –including setting user fees – for the normal operation of the course. The initial term of the agreement is ten years commencing July 1, 2012, with an option for two (2) additional five (5) year extensions, and cancellable by either party in the event of default. The Lessee must pay to the City rent based on a percentage of gross revenues from course operations and concessions and reimburse the City for personnel and equipment provided by the City. In addition, the Lessee annually must contribute $40,000 to a Capital Improvement Project for the benefit of the golf course. For the year ended June 30, 2021, the City received $38,500 in rents. The City reports activities of the golf course as a nonmajor enterprise fund. The cost and carrying amount of assets lease under this agreement were as follows: Service Agreement - Tayman Park Golf Group, Inc. Schedule of Asset Carrying Costs Accumulated Carrying Cost Depreciation Value Asset Land 965,284$ -$ 965,284$ Land improvements 323,221 307,253 15,968 Infrastructure 340,353 178,259 162,093 Buildings 115,992 94,332 21,660 Total Assets 1,744,849$ 579,844$ 1,165,006$ Attachment 1 Page 719 of 858 Notes to the Basic Financial Statements City of Ukiah, California Financial Section: Other Required Supplementary Information Page | 83 Note 16 – Service Contracts (continued) Solid Waste Collection and Ukiah Transfer Station Agreement The City has granted Ukiah Waste Solutions a franchise for mandatory residential and optional commercial garbage collection and disposal. The City has also contracted with Ukiah Waste Solutions to provide a citywide recycling program. The City acts as billing and collecting agent for the residential accounts of Ukiah Waste Solutions. Amounts held by the City on behalf of the corporation are accounted for in the Custodial funds. Participation Agreement with Ukiah Valley Sanitation District The City has contracted with the Ukiah Valley Sanitation District to provide processing of the District's wastewater. In addition, the City provides other direct maintenance services for the District. District assets held by the City are accounted for in the Custodial funds. Attachment 1 Page 720 of 858 Required Supplementary Information (RSI) City of Ukiah, California Financial Section: Other Required Supplementary Information Page | 84 Required Supplementary Information (RSI) City of Ukiah, California Schedules of Contributions and Proportionate Share of Net Pension Liability, Agent Multiple Employer (Miscellaneous), Last Ten Years Schedule of Changes in Net Pension Liability for the Measurement Periods Ended June 30, Attachment 1 Page 721 of 858 Required Supplementary Information (RSI) City of Ukiah, California Financial Section: Other Required Supplementary Information Page | 85 Schedule of Plan Contributions for the fiscal years ended June 301, Employer Fiscal Year End 2021 2020 2019 2018 2017 2016 2015 2014 Actuarlially Determined Contribution $ 3,746,155 $ 3,591,800 $ 3,241,493 $ 2,941,163 $ 2,652,462 $ 2,391,847 $ 2,156,759 $ 2,193,059 Contributions in Relation to the Actuarially Determined Contribution 2 (34,602,386) (3,591,800) (3,241,493) (2,941,163) (2,652,462) (2,391,847) (2,156,759) (2,193,059) Contribution Deficiency (Excess) $ (30,856,231) $ - $ - $ - $ - $ - $ - $ - Covered Payroll 3 $ 9,257,248 $ 10,045,842 $ 9,257,248 $ 8,821,982 $ 8,412,838 $ 7,949,673 $ 8,008,361 $ 8,340,257 Contributions as Percentage of Covered Payroll 373.79% 35.75% 35.02% 33.34% 31.53% 30.09% 26.93% 26.29% 4 Fiscal Year 2015 was the first year of implementation, therefore only 7 years are shown. 1 As prescribed in GASB 68, paragraph 46, the information presented in the Schedule of Plan Contributions should also be presented as of the employer’s most recent fiscal year- end. The employer is responsible for determining this information as prescribed by the standard as this data is not available to CalPERS. 2 Employers are assumed to make contributions equal to the actuarially determined contributions. However, some employers may choose to make additional contributions towards their unfunded liability. Employer contributions for such plans exceed the actuarially determined contributions. 3 Includes one year’s payroll growth using 2.75 percent payroll assumption for fiscal year ended June 30, 2018-20; 3.00 percent payroll assumption for fiscal years ended June 30, 2014-17. Covered payroll for 2021 derived from actuarial valuation report for required contributions for FY 2021, valuation dated 6/30/19. Attachment 1 Page 722 of 858 Required Supplementary Information (RSI) City of Ukiah, California Financial Section: Other Required Supplementary Information Page | 86 City of Ukiah, California Schedules of Contributions and Proportionate Share of Net Pension Liability, Cost Sharing Plan (Safety), Last Ten Years Schedule of Changes in Net Pension Liability and Related Ratios for the Measurement Periods Ended June 30, Safety Plan Measurement Date June 30, 2014 Measurement Date June 30, 2015 Measurement Date June 30, 2016 Measurement Date June 30, 2017 Measurement Date June 30, 2018 Measurement Date June 30, 2019 Measurement Date June 30, 2020 Plan's Proportion of the PERF C Net Pension Liability/(Asset) 0.185181% 0.180597% 0.176726% 0.173294% 0.177461% 0.177205% 0.179741% Plan's Proportionate Share of the Net Pension Liability/(Asset) $11,522,849 $12,396,052 $15,292,260 $17,185,970 $17,100,610 $18,158,244 $19,556,573 Plan's Covered Payroll $3,330,571 $3,844,242 $3,434,144 $3,366,699 $3,928,981 $4,038,688 $4,323,583 Plan's Proportionate Share of the Net Pension Liability/(Asset) as a Percentage of its Covered Payroll 345.97% 322.46% 445.30% 510.47% 435.24% 449.61% 452.32% Plan's Proportionate Share of the Fiduciary Net Position as a Percentage of the Plan’s Total Pension Liability 79.27% 75.31% 71.08% 70.49% 72.29% 72.67% 71.32% Notes to Schedule: 1. Changes of benefit terms – There were no changes to benefit terms that applied to all members of the Public Agency Pool. However, individual employers in the Plan may have provided a benefit improvement to their employees by granting Two Years Additional Service Credit to members retiring during a specified time period (a.k.a. Golden Handshakes). Employers that have done so may need to report this information as a separate liability in their financial statement as CalPERS considers such amounts to be separately financed employer- specific liabilities. These employers should consult with their auditors. 2. Changes in assumptions – No changes to assumptions from year prior. 3. Fiscal Year 2015 was the first year of implementation, therefore only 6 years are shown. Attachment 1 Page 723 of 858 Required Supplementary Information (RSI) City of Ukiah, California Financial Section: Other Required Supplementary Information Page | 87 City of Ukiah, California Schedules of Contributions and Proportionate Share of Net Pension Liability, Cost Sharing Plan (Safety), Last Ten Years (cont) Schedule of Plan Contributions for the fiscal years ended June 30, Safety Plan CalPERS Fiscal Year 2014-15 CalPERS Fiscal Year 2015-16 CalPERS Fiscal Year 2016-17 CalPERS Fiscal Year 2017-18 CalPERS Fiscal Year 2018-19 CalPERS Fiscal Year 2019-20 CalPERS Fiscal Year 2020-21 Actuarially Determined Contributions $1,309,930 $1,520,825 $1,575,086 $1,763,563 $1,950,142 $2,177,282 $345,379 Actual Contributions During the Measurement Period ($1,309,930) ($1,520,825) ($1,575,086) ($1,763,563) ($1,950,142) ($2,177,282) ($15,338,474) Contribution Deficiency (Excess) $0 $0 $0 $0 $0 $0 ($14,993,095) Covered Payroll $3,844,242 $3,434,144 $4,135,089 $4,088,030 $3,928,981 $4,163,203 $4,263,870 Contributions as a Percentage of Covered Payroll 34.08% 44.29% 38.09% 43.14% 49.63% 52.30% 8.10% Notes to Schedule: Contribution Valuation Date: June 30, 2012 June 30, 2013 June 30, 2014 June 30, 2015 June 30, 2016 June 30, 2017 June 30, 2018 * Fiscal Year 2015 was the first year of implementation, therefore only 7 years are shown. Attachment 1 Page 724 of 858 Required Supplementary Information (RSI) City of Ukiah, California Financial Section: Other Required Supplementary Information Page | 88 City of Ukiah, California General Fund Budgetary Comparison Schedule Schedule of Revenues, Expenditures, and Changes in Fund Balances Budget and Actual Variance with Original Final Actual Final Budget REVENUES Property tax $ 3,099,480 $ 3,099,480 $ 3,408,846 $ 309,366 Sales tax 10,697,430 14,334,111 15,535,021 1,200,910 Transient occupancy 870,000 1,200,000 1,362,134 162,134 Business license tax 343,200 343,200 484,533 141,333 Other taxes 300 300 1,136 836 Franchise fees 1,625,675 1,625,675 1,815,271 189,596 Charges for service 2,070,369 2,070,369 2,434,204 363,835 Licenses and permits 325,282 325,282 276,752 (48,530) Grants contributions and donations 659,200 3,063,518 1,226,237 (1,837,281) Use of money and property 168,322 168,322 52,427 (115,895) Intergovernmental 41,011 42,681 77,668 34,987 Fines penalties and forfeitures 35,000 35,000 25,933 (9,067) Interest, rent, and concessions - 40,000 - (40,000) Miscellaneous 272,000 288,270 138,952 (149,318) Total revenues 20,207,269 26,636,208 26,839,114 202,906 EXPENDITURES Current: General government (235,895) (227,042) 60,132 (287,174) Public safety 11,906,160 12,125,672 12,701,313 (575,641) Housing and community development 968,815 1,142,970 1,044,627 98,343 Public works 1,246,454 1,639,473 1,487,609 151,864 Parks, buildings, and grounds 1,152,993 1,156,049 1,189,386 (33,337) Recreation and culture 1,584,385 1,582,533 2,435,717 (853,184) Economic development and redevelopment 99,923 99,923 256,392 (156,469) Total current 16,722,835 17,519,578 19,175,176 (1,655,598) Debt service: Interest 92,976 92,976 90,242 2,734 Principal 58,100 58,100 56,392 1,708 Capital lease principal 127,170 127,170 127,291 (121) Capital lease interest 26,534 26,534 26,949 (415) Total debt service 304,780 304,780 300,874 3,906 Capital outlay: Public safety - 117,268 65,051 52,217 Public works - 2,507,486 1,812,859 694,627 Parks, buildings, and grounds 242,000 242,000 - 242,000 Recreation and culture 440,000 90,000 - 90,000 Total capital outlay 682,000 2,956,754 1,877,910 1,078,844 Total expenditures 17,709,615 20,781,112 21,353,960 (572,848) Excess (deficiency) of revenues over expenditures 2,497,654 5,855,096 5,485,154 (369,942) OTHER FINANCING SOURCES (USES) Transfers in 129,000 129,000 129,001 1 Transfers out (2,626,653) (3,401,579) (3,687,933) (286,354) Total other financing sources (uses) (2,497,653) (3,272,579) (3,558,932) (286,353) Net change in fund balances 1 2,582,517 1,926,222 (656,295) Fund balances - beginning 9,303,307 9,303,307 9,303,307 - Fund balances - ending $ 9,303,308 $ 11,885,824 $ 11,229,529 $ (656,295) Budgeted Amounts Attachment 1 Page 725 of 858 Required Supplementary Information (RSI) City of Ukiah, California Financial Section: Other Required Supplementary Information Page | 89 City of Ukiah, California HOME Program Income Budgetary Comparison Schedule Schedule of Revenues, Expenditures, and Changes in Fund Balances, Special Revenue Fund Budget and Actual Variance with Original Final Actual Final Budget REVENUES Grants contributions and donations $ 500,000 $ 500,000 $ - $ (500,000) Use of money and property - - 147,587 147,587 Intergovernmental - - 4,783,983 4,783,983 Interest, rent, and concessions - - 28,216 28,216 Total revenues 500,000 500,000 4,959,786 4,459,786 EXPENDITURES Current: Housing and community development 845,000 5,862,750 218,723 5,644,027 Total current 845,000 5,862,750 218,723 5,644,027 Total expenditures 845,000 5,862,750 218,723 5,644,027 Excess (deficiency) of revenues over expenditures (345,000) (5,362,750) 4,741,063 10,103,813 OTHER FINANCING SOURCES (USES) Total other financing sources (uses) - - - - Net change in fund balances (345,000) (5,362,750) 4,741,063 10,103,813 Fund balances - beginning 2,772,141 2,772,141 2,772,141 - Fund balances - ending $ 2,427,141 $ (2,590,609) $ 7,513,204 $ 10,103,813 Budgeted Amounts Attachment 1 Page 726 of 858 Required Supplementary Information (RSI) City of Ukiah, California Financial Section: Other Required Supplementary Information Page | 90 City of Ukiah, California Notes to Required Supplemental Information June 30, 2021 Budgetary Data General Budget Policies The City Council approves the annual budget submitted by the City Manager prior to the beginning of the new fiscal year. Public hearings are conducted prior to its adoption by Council. Supplemental appropriations, where required during the period, are also approved by the Council. There were several supplemental appropriations required during the year. At fiscal year-end, all operating budget appropriations lapse. Expenditures are monitored at the fund level for all funds with a legally adopted budget. These levels are considered the legal level of control. Department heads are authorized to transfer budgeted amounts within their departments, within the same fund, with the approval of the City Manager. Transfers of appropriations between departments may be made only by authority of the City Manager. Transfers of appropriations between funds may be made only by authority of the City Council. Formal budgetary integration is employed as a management control device during the fiscal year for all governmental funds. Annual budgets are adopted on a basis consistent with accounting principles generally accepted in the United States of America for all governmental funds except for certain special revenue and capital projects funds, which adopt project-length budgets. Encumbrances Encumbrances are estimations of costs related to unperformed contracts for goods and services. These commitments are recorded for budgetary control purposes in the General, Special Revenue and similar governmental funds. Encumbrances outstanding at year-end are reported as a committed fund balance. They represent the estimated amount of the expenditure ultimately to result if unperformed contracts in process at year-end are completed. They do not constitute expenditures or estimated liabilities. Attachment 1 Page 727 of 858 Supplementary Information Combining and Individual Fund Financial Statements and Schedules Attachment 1 Page 728 of 858 Streets Capital Improvement Budgetary Comparison Schedule Schedule of Revenues, Expenditures, and Changes in Fund Balances Budget and Actual Variance with Original Final Actual Final Budget REVENUES Grants contributions and donations $ - $ 77,022 $ - $ (77,022) Use of money and property - - 3,592 3,592 Total revenues - 77,022 3,592 (73,430) EXPENDITURES Current: Public works 199,541 206,916 172,212 34,704 Total current 199,541 206,916 172,212 34,704 Capital outlay: Public works 3,245,000 5,668,474 2,786,043 2,882,431 Total capital outlay 3,245,000 5,668,474 2,786,043 2,882,431 Total expenditures 3,444,541 5,875,390 2,958,255 2,917,135 Excess (deficiency) of revenues over expenditures (3,444,541) (5,798,368) (2,954,663) 2,843,705 OTHER FINANCING SOURCES (USES) Transfers in 2,995,887 2,995,887 3,106,818 110,931 Total other financing sources (uses) 2,995,887 2,995,887 3,106,818 110,931 Net change in fund balances (448,654) (2,802,481) 152,155 2,954,636 Fund balances - beginning (980,770) (980,770) (980,770) - Fund balances - ending $ (1,429,424) $ (3,783,251) $ (828,615) $ 2,954,636 Budgeted Amounts Attachment 1 Page 729 of 858 Pension Debt Service Budgetary Comparison Schedule Schedule of Revenues, Expenditures, and Changes in Fund Balances Budget and Actual Variance with Original Final Actual Final Budget REVENUES Use of money and property $ - $ - $ (9,588) $ (9,588) Total revenues - - (9,588) (9,588) EXPENDITURES Current: General government - - 26,142,003 (26,142,003) Total current - - 26,142,003 (26,142,003) Debt service: Issuance expense - - 280,533 (280,533) Total debt service - - 280,533 (280,533) Capital outlay: Total capital outlay - - - - Total expenditures - - 26,422,536 (26,422,536) Excess (deficiency) of revenues over expenditures - - (26,432,124) (26,432,124) OTHER FINANCING SOURCES (USES) Issuance of debt - - 29,927,851 29,927,851 Total other financing sources (uses) - - 29,927,851 29,927,851 Net change in fund balances - - 3,495,727 3,495,727 Fund balances - beginning - - - - Fund balances - ending $ - $ - $ 3,495,727 $ 3,495,727 Budgeted Amounts Attachment 1 Page 730 of 858 City of Ukiah, California Financial Section: Supplementary Information | Budget Comparisons | Nonmajor Funds Page | 94 Nonmajor Governmental Funds SPECIAL REVENUE FUNDS Special Revenue Fund The Special Revenue Fund is used to account for reserve amounts being accumulated for special programs, projects and activities. City Prop 172 Used to account for revenues received from allocation of Prop 172 monies for public safety. Museum Grant Fund The Museum Grant Fund is used to account for resources received for the Grace Hudson Museum provided by grantors or other third-party entities. ARRC General Operating Fund The ARRC General Operating Fund is used to account for resources and operating expenditures in support of the Alex Rorabaugh Center. Downtown Business Improvement The Downtown Business Improvement Fund is used to account for resources accumulated for improvements to the downtown business district, funded by business license fees and transferred to the Ukiah Main Street Program as the administrative agency. LMIHF Housing Asset Fund The Low- and Moderate-Income Housing Asset Fund is used to account for resources associated with program income received from low- and moderate-income housing assets. It contains restricted monies that are the proceeds of properties purchased by the Ukiah Redevelopment Agency (Agency) with affordable housing set-aside funds and were transferred to the City of Ukiah, as the Housing Successor to the former Agency, pursuant to Health and Safety Code Section 34176(a). Winter Special Events The Winter Special Events Fund is used to account for resources and expenditures associated with winter events, such as the ice rink. Advanced Planning Fund to account for special or highly technical planning activities, such as updates or revisions to the general plan or any of its elements. Gas Tax Fund The Gas Tax (HUTA) Fund is used to account for resources received from highway user taxes (HUTA) and special street funding from the state. Signalization Fund The Signalization Fund is used to account for resources and activities associated with traffic signalization in the City of Ukiah pursuant to Government Code Section 66000 et. seq. Attachment 1 Page 731 of 858 City of Ukiah, California Financial Section: Supplementary Information | Budget Comparisons | Nonmajor Funds Page | 95 1998 STIP Augmentation Fund to account for street and right-of-way improvements with special conditions. SB 325 Reimbursement Fund The SB 325 Reimbursement Fund is used to account for resources accumulated for improvements to streets and rights-of-way. S.T.P. The Surface Transportation Program Fund is used to account for resources accumulated for street and traffic safety improvements, funded by the Mendocino Council of Governments. Trans-Traffic Congest Relief The Trans-Traffic Congest Relief fund is used to account for resources accumulated for improvements to address traffic congestion in the City of Ukiah. CDBG Program Income The Community Development Block Grant (CDBG) Fund is used to account for resources accumulated and held resulting from current and prior Community Development Block Grant activities. CASP Certification and Training This fund is to account for resources accumulated and used to train City team members on CASP requirements. Asset Seizure Fund The Asset Seizure fund is used to account for resources accumulated from adjudicated asset seizures in which the City participated. Sup.Law Enforce.Svc.Fd(SLESF) The Supplemental Law Enforcement Services Fund (SLESF) Fund is used to account for special resources for police, provided by funding through a State of California COPS Grant program. Community-Based Transitional Housing Program (CBTHP) Fund to account for activities funded by resources from the Community-Based Transitional Housing Program. Asset Forfeiture 11470.2 H&S The Asset Forfeiture 11470.2 H&S Fund is used to account for resources accumulated from adjudicated asset seizures in which the City participated. Special Revenue Police The AB 109 Special Revenue Police Fund is used to account for resources available for police activities derived from state subventions. American Rescue This fund is to account for the receipt and use of federal funds appropriated to the City by the federal government under the American Rescue Act of 2021. Transfer Station Fund The Transfer Station Fund is used to account for resources accumulated from the activities of the City's solid waste transfer station. Attachment 1 Page 732 of 858 City of Ukiah, California Financial Section: Supplementary Information | Budget Comparisons | Nonmajor Funds Page | 96 CAPITAL PROJECT FUNDS Equipment Reserve Fund The Equipment Reserve Fund is used to account for resources accumulated for significant governmental capital acquisitions related to vehicles and equipment. Special Projects Reserve The Special Projects Reserve Fund is used to account for resources accumulated for governmental special projects. Park Development Fees Fund The Park Development Fees Fund is used to account for resources being collected for the development or enhancement of parklands in the City of Ukiah. Anton Stadium Fund The Anton Stadium Fund is used to account for resources accumulated for improvements to the stadium. Observatory Park Fund The Observatory Park Fund is used to account for resources accumulated for improvements to the park. Playground & Park Amenities The Playground & Park Amenities Fund is used to account for resources accumulated for improvements to City playgrounds and other similar park amenities. Swimming Pool Fund The Swimming Pool Fund is used to account for resources accumulated for improvements to the City-owned pool. Riverside Park Fund The Riverside Park Fund is used to account for resources accumulated for improvements to the park. Skate Park Fund The Skate Park Fund is used to account for resources accumulated for improvements to the park. Softball Complex Fund The Softball Complex Fund is used to account for resources accumulated for improvements to the complex. Rail Trail Fund To account for activities related to and resources supporting the City’s Rail Trail project. Attachment 1 Page 733 of 858 City of Ukiah, California Financial Section: Supplementary Information | Budget Comparisons | Nonmajor Funds Page | 97 PERMANENT FUNDS Riparian Corridor Enhancement Permanent funds are those in which the principal resources accounted for in the fund cannot be spent; rather, the proceeds of earnings on those principal amounts may be used to support activities and programs of the City. This fund accounts for resources and activities related to mitigating development impacts to riparian areas near the Redwood Business Park. Attachment 1 Page 734 of 858 City of Ukiah, California Financial Section: Supplementary Information | Budget Comparisons | Nonmajor Funds Page | 98 This Page Intentionally Left Blank Attachment 1 Page 735 of 858 City of Ukiah, California Financial Section: Supplementary Information | Budget Comparisons | Nonmajor Funds Page | 99 City of Ukiah, California Combining Balance Sheet – Special Revenue Nonmajor Governmental Funds June 30, 2021 Special Revenue Prop 172 Museum Grant ARRC Downtown Business Improvement LMIHF Housing Asset ASSETS Cash and investments $ 14,373 $ 94,500 $ 284 $ 14,572 $ 27 $ 1,880,164 Restricted cash and investments - - - - - 8,971 Accounts receivable - 25,213 - - - - Notes receivable - - - - - 1,483,474 Interest receivable 7 24 - 1 - 474 Grants and subventions receivable - - - - - - Land held for resale - - - - - 2,435,114 Total assets $ 14,380 $ 119,737 $ 284 $ 14,573 $ 27 $ 5,808,197 LIABILITIES Accounts payable $ - $ 5,140 $ - $ 2,654 $ 13,606 $ - Accrued payroll liabilities - - - 683 - - Due to other funds - - - - 2,838 - Advance from other funds - - - 49,601 - - Total liabilities - 5,140 - 52,938 16,444 - DEFERRED INFLOWS OF RESOURCES Unavailable revenues - grants and subventions - - - - - 83,683 Total deferred inflow of resources - - - - - 83,683 Total liabilities and deferred inflows of resources - 5,140 - 52,938 16,444 83,683 FUND BALANCES (DEFICITS) Restricted: CDBG activities - - - - - - Certifications and training - - - - - - Federal stimulus - - - - - - Housing activities - - - - - 5,724,514 Project reserve 14,380 - 284 - - - Public safety - 114,597 - - - - Streets and rights-of-way - - - - - - Committed: Planning activities - - - - - - Solid waste management - - - - - - Unassigned - - - (38,365) (16,417) - Total fund balances (deficits) $ 14,380 $ 114,597 $ 284 $ (38,365) $ (16,417) $ 5,724,514 Total liabilities and fund balances (deficits) $ 14,380 $ 119,737 $ 284 $ 14,573 $ 27 $ 5,808,197 Attachment 1 Page 736 of 858 City of Ukiah, California Financial Section: Supplementary Information | Budget Comparisons | Nonmajor Funds Page | 100 City of Ukiah, California Combining Balance Sheet – Special Revenue (cont) Nonmajor Governmental Funds June 30, 2021 Winter Special Events Advanced Planning Highway User Tax (Gas Tax)Signalization 1998 STIP Augmentation SB325 Reimbursement ASSETS Cash and investments $ 21 $ 311,754 $ 7,828 $ 381,209 $ 1 $ 102,949 Restricted cash and investments - - - - - - Accounts receivable - - 54,305 - - - Notes receivable - - - - - - Interest receivable - 43 - 96 8 29 Grants and subventions receivable - 116,055 - - 3,779 - Land held for resale - - - - - - Total assets $ 21 $ 427,852 $ 62,133 $ 381,305 $ 3,788 $ 102,978 LIABILITIES Accounts payable $ - $ 15,156 $ 419,118 $ - $ - $ - Accrued payroll liabilities - - - - - - Due to other funds 12,657 - 145,000 - 3,765 - Advance from other funds - - - - - - Total liabilities 12,657 15,156 564,118 - 3,765 - DEFERRED INFLOWS OF RESOURCES Unavailable revenues - grants and subventions - 116,055 - - - - Total deferred inflow of resources - 116,055 - - - - Total liabilities and deferred inflows of resources 12,657 131,211 564,118 - 3,765 - FUND BALANCES (DEFICITS) Restricted: CDBG activities - - - - - - Certifications and training - - - - - - Federal stimulus - - - - - - Housing activities - - - - - - Project reserve - - - - - - Public safety - - - - - - Streets and rights-of-way - - - 381,305 - 102,978 Committed: Planning activities - 296,641 - - - - Solid waste management - - - - - - Unassigned (12,636) - (501,985) - 23 - Total fund balances (deficits) $ (12,636) $ 296,641 $ (501,985) $ 381,305 $ 23 $ 102,978 Total liabilities and fund balances (deficits) $ 21 $ 427,852 $ 62,133 $ 381,305 $ 3,788 $ 102,978 Attachment 1 Page 737 of 858 City of Ukiah, California Financial Section: Supplementary Information | Budget Comparisons | Nonmajor Funds Page | 101 City of Ukiah, California Combining Balance Sheet – Special Revenue (cont) Nonmajor Governmental Funds June 30, 2021 S.T.P. Trans-Traffic Congest Relief CDBG Program Income CASP Certification and Training Asset Seizure Sup.Law Enforce.Svc.Fd(Slesf) ASSETS Cash and investments $ 189,771 $ - $ 239,426 $ 50,357 $ 107,557 $ 179,301 Restricted cash and investments - - - - - - Accounts receivable - - - - - 4,201 Notes receivable - - 221,583 - - - Interest receivable 37 47 62 14 26 39 Grants and subventions receivable 29,254 - - - - - Land held for resale - - - - - - Total assets $ 219,062 $ 47 $ 461,071 $ 50,371 $ 107,583 $ 183,541 LIABILITIES Accounts payable $ 19,933 $ - $ - $ - $ 12,863 $ - Accrued payroll liabilities - - - - - 4,767 Due to other funds - - - - - - Advance from other funds - - - - - - Total liabilities 19,933 - - - 12,863 4,767 DEFERRED INFLOWS OF RESOURCES Unavailable revenues - grants and subventions 29,254 - - - - - Total deferred inflow of resources 29,254 - - - - - Total liabilities and deferred inflows of resources 49,187 - - - 12,863 4,767 FUND BALANCES (DEFICITS) Restricted: CDBG activities - - 461,071 - - - Certifications and training - - - 50,371 - - Federal stimulus - - - - - - Housing activities - - - - - - Project reserve - - - - - - Public safety - - - - 94,720 178,774 Streets and rights-of-way 169,875 - - - - - Committed: Planning activities - - - - - - Solid waste management - - - - - - Unassigned - 47 - - - - Total fund balances (deficits) $ 169,875 $ 47 $ 461,071 $ 50,371 $ 94,720 $ 178,774 Total liabilities and fund balances (deficits) $ 219,062 $ 47 $ 461,071 $ 50,371 $ 107,583 $ 183,541 Attachment 1 Page 738 of 858 City of Ukiah, California Financial Section: Supplementary Information | Budget Comparisons | Nonmajor Funds Page | 102 City of Ukiah, California Combining Balance Sheet – Special Revenue (cont) Nonmajor Governmental Funds June 30, 2021 Community-Based Transitional Housing Asset Forfeiture 11470.2 H&S F Special Revenue - Police American Rescue Fund Transfer Station Total Nonmajor Special revenue funds ASSETS Cash and investments $ 473,093 $ 62,653 $ 2,580 $ - $ 914 $ 4,113,334 Restricted cash and investments - - - - - 8,971 Accounts receivable - - - - 75,767 159,486 Notes receivable - - - - - 1,705,057 Interest receivable 113 18 35 468 108 1,649 Grants and subventions receivable - - - - - 149,088 Land held for resale - - - - - 2,435,114 Total assets $ 473,206 $ 62,671 $ 2,615 $ 468 $ 76,789 $ 8,572,699 LIABILITIES Accounts payable $ - $ - $ - $ - $ - $ 488,470 Accrued payroll liabilities 6,333 - - - - 11,783 Due to other funds - - - - - 164,260 Advance from other funds - - - - - 49,601 Total liabilities 6,333 - - - - 714,114 DEFERRED INFLOWS OF RESOURCES Unavailable revenues - grants and subventions - - - - - 228,992 Total deferred inflow of resources - - - - - 228,992 Total liabilities and deferred inflows of resources 6,333 - - - - 943,106 FUND BALANCES (DEFICITS) Restricted: CDBG activities - - - - - 461,071 Certifications and training - - - - - 50,371 Federal stimulus - - - 468 - 468 Housing activities - - - - - 5,724,514 Project reserve - - - - - 14,664 Public safety 466,873 62,671 2,615 - - 920,250 Streets and rights-of-way - - - - - 654,158 Committed: Planning activities - - - - - 296,641 Solid waste management - - - - 76,789 76,789 Unassigned - - - - - (569,333) Total fund balances (deficits) $ 466,873 $ 62,671 $ 2,615 $ 468 $ 76,789 $ 7,629,593 Total liabilities and fund balances (deficits) $ 473,206 $ 62,671 $ 2,615 $ 468 $ 76,789 $ 8,572,699 Attachment 1 Page 739 of 858 City of Ukiah, California Financial Section: Supplementary Information | Budget Comparisons | Nonmajor Funds Page | 103 City of Ukiah, California Combining Balance Sheet – Capital Project Nonmajor Governmental Funds June 30, 2021 Equipment Reserve Special Projects Reserve Park Development Fees Anton Stadium Observatory Park Playground & Park Amenities ASSETS Cash and investments $ 380,464 $ 889,021 $ 30,724 $ 11,503 $ 2,473 $ 2,687 Accounts receivable - - 11,468 - - - Interest receivable 105 - 12 3 1 1 Grants and subventions receivable - - - - - - Total assets $ 380,569 $ 889,021 $ 42,204 $ 11,506 $ 2,474 $ 2,688 LIABILITIES Accounts payable $ - $ 404 $ - $ - $ - $ - Due to other funds - - - - - - Advance from other funds - - - - - - Total liabilities - 404 - - - - DEFERRED INFLOWS OF RESOURCES Unavailable revenues - grants and subventions - - - - - - Total deferred inflow of resources - - - - - - Total liabilities and deferred inflows of resources - 404 - - - - FUND BALANCES (DEFICITS) Committed: Park development - - 42,204 - - - Assigned: Capital projects - - - 11,506 2,474 2,688 Equipment reserve 380,569 - - - - - Park Development - - - - - - Project reserve - 888,617 - - - - Unassigned - - - - - - Total fund balances (deficits) $ 380,569 $ 888,617 $ 42,204 $ 11,506 $ 2,474 $ 2,688 Total liabilities and fund balances (deficits) $ 380,569 $ 889,021 $ 42,204 $ 11,506 $ 2,474 $ 2,688 City of Ukiah, California Attachment 1 Page 740 of 858 City of Ukiah, California Financial Section: Supplementary Information | Budget Comparisons | Nonmajor Funds Page | 104 Combining Balance Sheet – Capital Project (cont) Nonmajor Governmental Funds June 30, 2021 Swimming Pool Riverside Park Skate Park Softball Complex Rail Trail Total Nonmajor Capital projects funds ASSETS Cash and investments $ 593 $ 558 $ 11,903 $ 6,844 $ 124,543 $ 1,461,313 Accounts receivable - - - - - 11,468 Interest receivable - - 3 2 32 159 Grants and subventions receivable - 86,481 - - - 86,481 Total assets $ 593 $ 87,039 $ 11,906 $ 6,846 $ 124,575 $ 1,559,421 LIABILITIES Accounts payable $ - $ - $ - $ - $ - $ 404 Due to other funds - 66,500 - - - 66,500 Advance from other funds 136,349 - - - 146,661 283,010 Total liabilities 136,349 66,500 - - 146,661 349,914 DEFERRED INFLOWS OF RESOURCES Unavailable revenues - grants and subventions - 14,506 - - - 14,506 Total deferred inflow of resources - 14,506 - - - 14,506 Total liabilities and deferred inflows of resources 136,349 81,006 - - 146,661 364,420 FUND BALANCES (DEFICITS) Committed: Park development - - - - - 42,204 Assigned: Capital projects - - 11,906 6,846 - 35,420 Equipment reserve - - - - - 380,569 Park Development - 6,033 - - - 6,033 Project reserve - - - - - 888,617 Unassigned (135,756) - - - (22,086) (157,842) Total fund balances (deficits) $ (135,756) $ 6,033 $ 11,906 $ 6,846 $ (22,086) $ 1,195,001 Total liabilities and fund balances (deficits) $ 593 $ 87,039 $ 11,906 $ 6,846 $ 124,575 $ 1,559,421 Attachment 1 Page 741 of 858 City of Ukiah, California Financial Section: Supplementary Information | Budget Comparisons | Nonmajor Funds Page | 105 City of Ukiah, California Combining Balance Sheet – Permanent Nonmajor Governmental Funds June 30, 2021 Riparian Corridor Enhancement ASSETS Cash and investments $ 145,997 Interest receivable 39 Total assets $ 146,036 LIABILITIES Total liabilities - DEFERRED INFLOWS OF RESOURCES Total deferred inflow of resources - Total liabilities and deferred inflows of resources - FUND BALANCES (DEFICITS) Nonspendable: Riparian corridor management 137,576 Restricted: Riparian corridor management 8,460 Total fund balances (deficits) $ 146,036 Total liabilities and fund balances (deficits) $ 146,036 Attachment 1 Page 742 of 858 City of Ukiah, California Financial Section: Supplementary Information | Budget Comparisons | Nonmajor Funds Page | 106 City of Ukiah, California Combining Balance Sheet – Summary Nonmajor Governmental Funds June 30, 2021 Special revenue funds Capital projects funds Permanent funds Total Nonmajor Governmental Funds ASSETS Cash and investments $ 4,113,334 $ 1,461,313 $ 145,997 $ 5,720,644 Restricted cash and investments 8,971 - - 8,971 Accounts receivable 159,486 11,468 - 170,954 Notes receivable 1,705,057 - - 1,705,057 Interest receivable 1,649 159 39 1,847 Grants and subventions receivable 149,088 86,481 - 235,569 Land held for resale 2,435,114 - - 2,435,114 Total assets $ 8,572,699 $ 1,559,421 $ 146,036 $ 10,278,156 LIABILITIES Accounts payable $ 488,470 $ 404 $ - $ 488,874 Accrued payroll liabilities 11,783 - - 11,783 Due to other funds 164,260 66,500 - 230,760 Advance from other funds 49,601 283,010 - 332,611 Total liabilities 714,114 349,914 - 1,064,028 DEFERRED INFLOWS OF RESOURCES Unavailable revenues - grants and subventions 228,992 14,506 - 243,498 Total deferred inflow of resources 228,992 14,506 - 243,498 Total liabilities and deferred inflows of resources 943,106 364,420 - 1,307,526 FUND BALANCES (DEFICITS) Nonspendable: Riparian corridor management - - 137,576 137,576 Restricted: CDBG activities 461,071 - - 461,071 Certifications and training 50,371 - - 50,371 Federal stimulus 468 - - 468 Housing activities 5,724,514 - - 5,724,514 Project reserve 14,664 - - 14,664 Public safety 920,250 - - 920,250 Riparian corridor management - - 8,460 8,460 Streets and rights-of-way 654,158 - - 654,158 Committed: Park development - 42,204 - 42,204 Planning activities 296,641 - - 296,641 Solid waste management 76,789 - - 76,789 Assigned: Capital projects - 35,420 - 35,420 Equipment reserve - 380,569 - 380,569 Park Development - 6,033 - 6,033 Project reserve - 888,617 - 888,617 Unassigned (569,333) (157,842) - (727,175) Total fund balances (deficits) $ 7,629,593 $ 1,195,001 $ 146,036 $ 8,970,630 Total liabilities and fund balances (deficits) $ 8,572,699 $ 1,559,421 $ 146,036 $ 10,278,156 Attachment 1 Page 743 of 858 City of Ukiah, California Financial Section: Supplementary Information | Budget Comparisons | Nonmajor Funds Page | 107 City of Ukiah, California Combining Statement of Revenues, Expenditures, and Changes in Fund Balance – Special Revenue Nonmajor Governmental Funds Year Ended June 30, 2021 Special Revenue Prop 172 Museum Grant ARRC Downtown Business Improvement LMIHF Housing Asset REVENUES Property tax $ - $ - $ - $ - $ - $ - Business license tax - - - - 25,270 - Charges for service - - - - - - Use of money and property 79 200 264 49,571 7 54,338 Intergovernmental - 102,051 - - - - Miscellaneous - - - 20,004 - - Total revenues 79 102,251 264 69,575 25,277 54,338 EXPENDITURES Current: Public safety - 385,346 - - - - Housing and community development - - - - - - Public works - - - - - - Recreation and culture - - - 61,750 - - Economic development and redevelopment - - - - 33,869 - Debt service: Interest - 2,340 - - - - Capital outlay: Public safety - 14,300 - - - - Public works - - - - - - Total expenditures - 401,986 - 61,750 33,869 - Excess (deficiency) of revenues over expenditures 79 (299,735) 264 7,825 (8,592) 54,338 OTHER FINANCING SOURCES (USES) Transfers in - - - - - - Transfers out - - - - - - Debt proceeds - 343,763 - - - - Total other financing sources (uses) - 343,763 - - - - Net change in fund balances 79 44,028 264 7,825 (8,592) 54,338 Fund balances - beginning 14,301 70,569 20 (46,190) (7,825) 5,670,176 Fund balances - ending $ 14,380 $ 114,597 $ 284 $ (38,365) $ (16,417) $ 5,724,514 Attachment 1 Page 744 of 858 City of Ukiah, California Financial Section: Supplementary Information | Budget Comparisons | Nonmajor Funds Page | 108 City of Ukiah, California Combining Statement of Revenues, Expenditures, and Changes in Fund Balance – Special Revenue (cont) Nonmajor Governmental Funds (cont) Year Ended June 30, 2021 Winter Special Events Advanced Planning Highway User Tax (Gas Tax)Signalization 1998 STIP Augmentation SB325 Reimbursement REVENUES Property tax $ - $ - $ - $ - $ - $ - Business license tax - - - - - - Charges for service - 59,466 - - - - Use of money and property - 1,687 224 2,005 47 704 Intergovernmental - - 663,357 - - 35,000 Miscellaneous - - - - - - Total revenues - 61,153 663,581 2,005 47 35,704 EXPENDITURES Current: Public safety - - - - - - Housing and community development - 4,092 - - - - Public works - - 64,075 - - 11,469 Recreation and culture - - - - - - Economic development and redevelopment - - - - - - Debt service: Interest - - - - - - Capital outlay: Public safety - - - - - - Public works - - 1,052,735 - - - Total expenditures - 4,092 1,116,810 - - 11,469 Excess (deficiency) of revenues over expenditures - 57,061 (453,229) 2,005 47 24,235 OTHER FINANCING SOURCES (USES) Transfers in - - - - - - Transfers out - - (4,000) - - - Debt proceeds - - - - - - Total other financing sources (uses) - - (4,000) - - - Net change in fund balances - 57,061 (457,229) 2,005 47 24,235 Fund balances - beginning (12,636) 239,580 (44,756) 379,300 (24) 78,743 Fund balances - ending $ (12,636) $ 296,641 $ (501,985) $ 381,305 $ 23 $ 102,978 Attachment 1 Page 745 of 858 City of Ukiah, California Financial Section: Supplementary Information | Budget Comparisons | Nonmajor Funds Page | 109 City of Ukiah, California Combining Statement of Revenues, Expenditures, and Changes in Fund Balance – Special Revenue (cont) Nonmajor Governmental Funds (cont) Year Ended June 30, 2021 S.T.P. Trans-Traffic Congest Relief CDBG Program Income CASP Certification and Training Asset Seizure Sup.Law Enforce.Svc.Fd(Slesf) REVENUES Property tax $ - $ - $ - $ - $ - $ - Business license tax - - - - - - Charges for service - - - - - - Use of money and property 1,308 550 151,180 (353) 433 415 Intergovernmental 32,063 - - 50,724 45,099 121,309 Miscellaneous - - - - - - Total revenues 33,371 550 151,180 50,371 45,532 121,724 EXPENDITURES Current: Public safety - - - - 49,329 123,905 Housing and community development - - 192,351 - - - Public works - - - - - - Recreation and culture - - - - - - Economic development and redevelopment - - - - - - Debt service: Interest - - - - - - Capital outlay: Public safety - - - - - - Public works 80,352 - - - - - Total expenditures 80,352 - 192,351 - 49,329 123,905 Excess (deficiency) of revenues over expenditures (46,981) 550 (41,171) 50,371 (3,797) (2,181) OTHER FINANCING SOURCES (USES) Transfers in - 478,156 - - - - Transfers out - - - - - - Debt proceeds - - - - - - Total other financing sources (uses) - 478,156 - - - - Net change in fund balances (46,981) 478,706 (41,171) 50,371 (3,797) (2,181) Fund balances - beginning 216,856 (478,659) 502,242 - 98,517 180,955 Fund balances - ending $ 169,875 $ 47 $ 461,071 $ 50,371 $ 94,720 $ 178,774 City of Ukiah, California Attachment 1 Page 746 of 858 City of Ukiah, California Financial Section: Supplementary Information | Budget Comparisons | Nonmajor Funds Page | 110 Combining Statement of Revenues, Expenditures, and Changes in Fund Balance – Special Revenue (cont) Nonmajor Governmental Funds (cont) Year Ended June 30, 2021 Community-Based Transitional Housing Asset Forfeiture 11470.2 H&S F Special Revenue - Police American Rescue Fund Transfer Station Total Nonmajor Special revenue funds REVENUES Property tax $ - $ - $ - $ - $ - $ - Business license tax - - - - - 25,270 Charges for service - - - - - 59,466 Use of money and property 4,119 394 (328) 468 461,404 728,716 Intergovernmental - - 125,000 - - 1,174,603 Miscellaneous - - - - - 20,004 Total revenues 4,119 394 124,672 468 461,404 2,008,059 EXPENDITURES Current: Public safety 221,293 5,241 - - - 785,114 Housing and community development 341 - - - - 196,784 Public works - - - - 299 75,843 Recreation and culture - - - - - 61,750 Economic development and redevelopment - - - - - 33,869 Debt service: Interest - - - - - 2,340 Capital outlay: Public safety - - - - - 14,300 Public works - - - - - 1,133,087 Total expenditures 221,634 5,241 - - 299 2,303,087 Excess (deficiency) of revenues over expenditures (217,515) (4,847) 124,672 468 461,105 (295,028) OTHER FINANCING SOURCES (USES) Transfers in - - - - - 478,156 Transfers out - - (125,000) - (419,635) (548,635) Debt proceeds - - - - - 343,763 Total other financing sources (uses) - - (125,000) - (419,635) 273,284 Net change in fund balances (217,515) (4,847) (328) 468 41,470 (21,744) Fund balances - beginning 684,388 67,518 2,943 - 35,319 7,651,337 Fund balances - ending $ 466,873 $ 62,671 $ 2,615 $ 468 $ 76,789 $ 7,629,593 Attachment 1 Page 747 of 858 City of Ukiah, California Financial Section: Supplementary Information | Budget Comparisons | Nonmajor Funds Page | 111 City of Ukiah, California Combining Statement of Revenues, Expenditures, and Changes in Fund Balance – Capital Project Nonmajor Governmental Funds Year Ended June 30, 2021 Equipment Reserve Special Projects Reserve Park Development Fees Anton Stadium Observatory Park Playground & Park Amenities REVENUES Property tax $ - $ - $ - $ - $ - $ - Charges for service - - 11,468 - - - Grants contributions and donations - - - - - - Use of money and property 2,228 - 169 74 14 15 Interest, rent, and concessions - - - - - - Total revenues 2,228 - 11,637 74 14 15 EXPENDITURES Current: General government 2,483 - - - - - Recreation and culture - 19,906 - - - - Capital outlay: Recreation and culture - - - 2,092 - - Total expenditures 2,483 19,906 - 2,092 - - Excess (deficiency) of revenues over expenditures (255) (19,906) 11,637 (2,018) 14 15 OTHER FINANCING SOURCES (USES) Total other financing sources (uses) - - - - - - Net change in fund balances (255) (19,906) 11,637 (2,018) 14 15 Fund balances - beginning 380,824 908,523 30,567 13,524 2,460 2,673 Fund balances - ending $ 380,569 $ 888,617 $ 42,204 $ 11,506 $ 2,474 $ 2,688 Attachment 1 Page 748 of 858 City of Ukiah, California Financial Section: Supplementary Information | Budget Comparisons | Nonmajor Funds Page | 112 City of Ukiah, California Combining Statement of Revenues, Expenditures, and Changes in Fund Balance – Capital Project (cont) Nonmajor Governmental Funds (cont) Year Ended June 30, 2021 Swimming Pool Riverside Park Skate Park Softball Complex Rail Trail Total Nonmajor Capital projects funds REVENUES Property tax $ - $ - $ - $ - $ - $ - Charges for service - - - - - 11,468 Grants contributions and donations - 71,975 - - 299,015 370,990 Use of money and property 3 4 64 37 - 2,608 Interest, rent, and concessions - - - - (372) (372) Total revenues 3 71,979 64 37 298,643 384,694 EXPENDITURES Current: General government - - - - - 2,483 Recreation and culture - - - - - 19,906 Capital outlay: Recreation and culture - 61,210 - - - 63,302 Total expenditures - 61,210 - - - 85,691 Excess (deficiency) of revenues over expenditures 3 10,769 64 37 298,643 299,003 OTHER FINANCING SOURCES (USES) Total other financing sources (uses) - - - - - - Net change in fund balances 3 10,769 64 37 298,643 299,003 Fund balances - beginning (135,759) (4,736) 11,842 6,809 (320,729) 895,998 Fund balances - ending $ (135,756) $ 6,033 $ 11,906 $ 6,846 $ (22,086) $ 1,195,001 Attachment 1 Page 749 of 858 City of Ukiah, California Financial Section: Supplementary Information | Budget Comparisons | Nonmajor Funds Page | 113 Continued City of Ukiah, California Combining Statement of Revenues, Expenditures, and Changes in Fund Balance – Permanent Nonmajor Governmental Funds Year Ended June 30, 2021 Riparian Corridor Enhancement REVENUES Use of money and property $ 790 Total revenues 790 EXPENDITURES Current: Parks, buildings, and grounds 880 Debt service: Capital outlay: Total expenditures 880 Excess (deficiency) of revenues over expenditures (90) OTHER FINANCING SOURCES (USES) Total other financing sources (uses) - Net change in fund balances (90) Fund balances - beginning 146,126 Fund balances - ending $ 146,036 Attachment 1 Page 750 of 858 City of Ukiah, California Financial Section: Supplementary Information | Budget Comparisons | Nonmajor Funds Page | 114 City of Ukiah, California Combining Statement of Revenues, Expenditures, and Changes in Fund Balance - Summary Nonmajor Governmental Funds (cont) Year Ended June 30, 2021 Special revenue funds Capital projects funds Permanent funds Total Nonmajor Governmental Funds REVENUES Business license tax $ 25,270 $ - $ - $ 25,270 Charges for service 59,466 11,468 - 70,934 Grants contributions and donations - 370,990 - 370,990 Use of money and property 728,716 2,608 790 732,114 Intergovernmental 1,174,603 - - 1,174,603 Interest, rent, and concessions - (372) - (372) Miscellaneous 20,004 - - 20,004 Total revenues 2,008,059 384,694 790 2,393,543 EXPENDITURES Current: General government - 2,483 - 2,483 Public safety 785,114 - - 785,114 Housing and community development 196,784 - - 196,784 Public works 75,843 - - 75,843 Parks, buildings, and grounds - - 880 880 Recreation and culture 61,750 19,906 - 81,656 Economic development and redevelopment 33,869 - - 33,869 Debt service: Interest 2,340 - - 2,340 Capital outlay: Public safety 14,300 - - 14,300 Public works 1,133,087 - - 1,133,087 Recreation and culture - 63,302 - 63,302 Total expenditures 2,303,087 85,691 880 2,389,658 Excess (deficiency) of revenues over expenditures (295,028) 299,003 (90) 3,885 OTHER FINANCING SOURCES (USES) Transfers in 478,156 - - 478,156 Transfers out (548,635) - - (548,635) Debt proceeds 343,763 - - 343,763 Total other financing sources (uses) 273,284 - - 273,284 Net change in fund balances (21,744) 299,003 (90) 277,169 Fund balances - beginning 7,651,337 895,998 146,126 8,693,461 Fund balances - ending $ 7,629,593 $ 1,195,001 $ 146,036 $ 8,970,630 Attachment 1 Page 751 of 858 City of Ukiah, California Financial Section: Supplementary Information | Budget Comparisons | Nonmajor Funds Page | 115 Governmental Fund Budget Comparisons City of Ukiah, California Special Revenue Fund Schedule of Revenue, Expenditures, and Change in Fund Balances Budget and Actual Variance with Original Final Actual Final Budget REVENUES Use of money and property $ - $ - $ 79 $ 79 Total revenues - - 79 79 EXPENDITURES Current: Total current - - - - Debt service: Total debt service - - - - Capital outlay: Total capital outlay - - - - Total expenditures - - - - Excess (deficiency) of revenues over expenditures - - 79 79 OTHER FINANCING SOURCES (USES) Total other financing sources (uses) - - - - Net change in fund balances - - 79 79 Fund balances - beginning 14,301 14,301 14,301 - Fund balances - ending $ 14,301 $ 14,301 $ 14,380 $ 79 Budgeted Amounts Attachment 1 Page 752 of 858 City of Ukiah, California Financial Section: Supplementary Information | Budget Comparisons | Nonmajor Funds Page | 116 City of Ukiah, California Prop 172 Schedule of Revenue, Expenditures, and Change in Fund Balances Budget and Actual Variance with Original Final Actual Final Budget REVENUES Use of money and property $ 1,000 $ 1,000 $ 200 $ (800) Intergovernmental 55,756 55,756 102,051 46,295 Total revenues 56,756 56,756 102,251 45,495 EXPENDITURES Current: Public safety 40,990 40,990 385,346 (344,356) Total current 40,990 40,990 385,346 (344,356) Debt service: Interest - - 2,340 (2,340) Total debt service - - 2,340 (2,340) Capital outlay: Public safety 15,750 15,750 14,300 1,450 Total capital outlay 15,750 15,750 14,300 1,450 Total expenditures 56,740 56,740 401,986 (345,246) Excess (deficiency) of revenues over expenditures 16 16 (299,735) (299,751) OTHER FINANCING SOURCES (USES) Debt proceeds - - 343,763 343,763 Total other financing sources (uses) - - 343,763 343,763 Net change in fund balances 16 16 44,028 44,012 Fund balances - beginning 70,569 70,569 70,569 - Fund balances - ending $ 70,585 $ 70,585 $ 114,597 $ 44,012 Budgeted Amounts Attachment 1 Page 753 of 858 City of Ukiah, California Financial Section: Supplementary Information | Budget Comparisons | Nonmajor Funds Page | 117 City of Ukiah, California Museum Grant Fund Schedule of Revenue, Expenditures, and Change in Fund Balances Budget and Actual Variance with Original Final Actual Final Budget REVENUES Use of money and property $ - $ - $ 264 $ 264 Total revenues - - 264 264 EXPENDITURES Current: Total current - - - - Debt service: Total debt service - - - - Capital outlay: Total capital outlay - - - - Total expenditures - - - - Excess (deficiency) of revenues over expenditures - - 264 264 OTHER FINANCING SOURCES (USES) Total other financing sources (uses) - - - - Net change in fund balances - - 264 264 Fund balances - beginning 20 20 20 - Fund balances - ending $ 20 $ 20 $ 284 $ 264 Budgeted Amounts Attachment 1 Page 754 of 858 City of Ukiah, California Financial Section: Supplementary Information | Budget Comparisons | Nonmajor Funds Page | 118 City of Ukiah, California ARRC Schedule of Revenue, Expenditures, and Change in Fund Balances Budget and Actual Variance with Original Final Actual Final Budget REVENUES Use of money and property $ 62,000 $ 62,000 $ 49,571 $ (12,429) Miscellaneous 12,000 20,000 20,004 4 Total revenues 74,000 82,000 69,575 (12,425) EXPENDITURES Current: Recreation and culture 96,891 106,891 61,750 45,141 Total current 96,891 106,891 61,750 45,141 Debt service: Total debt service - - - - Capital outlay: Total capital outlay - - - - Total expenditures 96,891 106,891 61,750 45,141 Excess (deficiency) of revenues over expenditures (22,891) (24,891) 7,825 32,716 OTHER FINANCING SOURCES (USES) Total other financing sources (uses) - - - - Net change in fund balances (22,891) (24,891) 7,825 32,716 Fund balances - beginning (46,190) (46,190) (46,190) - Fund balances - ending $ (69,081) $ (71,081) $ (38,365) $ 32,716 Budgeted Amounts Attachment 1 Page 755 of 858 City of Ukiah, California Financial Section: Supplementary Information | Budget Comparisons | Nonmajor Funds Page | 119 City of Ukiah, California Downtown Business Improvement Schedule of Revenue, Expenditures, and Change in Fund Balances Budget and Actual Variance with Original Final Actual Final Budget REVENUES Business license tax $ 20,864 $ 20,864 $ 25,270 $ 4,406 Use of money and property - - 7 7 Total revenues 20,864 20,864 25,277 4,413 EXPENDITURES Current: Economic development and redevelopment 3,282 3,282 33,869 (30,587) Total current 3,282 3,282 33,869 (30,587) Debt service: Total debt service - - - - Capital outlay: Total capital outlay - - - - Total expenditures 3,282 3,282 33,869 (30,587) Excess (deficiency) of revenues over expenditures 17,582 17,582 (8,592) (26,174) OTHER FINANCING SOURCES (USES) Total other financing sources (uses) - - - - Net change in fund balances 17,582 17,582 (8,592) (26,174) Fund balances - beginning (7,825) (7,825) (7,825) - Fund balances - ending $ 9,757 $ 9,757 $ (16,417) $ (26,174) Budgeted Amounts Attachment 1 Page 756 of 858 City of Ukiah, California Financial Section: Supplementary Information | Budget Comparisons | Nonmajor Funds Page | 120 City of Ukiah, California Low-Mod Income Housing Fund (LMIHF) Schedule of Revenue, Expenditures, and Change in Fund Balances Budget and Actual Variance with Original Final Actual Final Budget REVENUES Use of money and property $ 98,586 $ 98,586 $ 54,338 $ (44,248) Total revenues 98,586 98,586 54,338 (44,248) EXPENDITURES Current: Housing and community development 531,000 531,000 - 531,000 Total current 531,000 531,000 - 531,000 Debt service: Total debt service - - - - Capital outlay: Total capital outlay - - - - Total expenditures 531,000 531,000 - 531,000 Excess (deficiency) of revenues over expenditures (432,414) (432,414) 54,338 486,752 OTHER FINANCING SOURCES (USES) Total other financing sources (uses) - - - - Net change in fund balances (432,414) (432,414) 54,338 486,752 Fund balances - beginning 5,670,176 5,670,176 5,670,176 - Fund balances - ending $ 5,237,762 $ 5,237,762 $ 5,724,514 $ 486,752 Budgeted Amounts Attachment 1 Page 757 of 858 City of Ukiah, California Financial Section: Supplementary Information | Budget Comparisons | Nonmajor Funds Page | 121 City of Ukiah, California Winter Special Events Schedule of Revenue, Expenditures, and Change in Fund Balances Budget and Actual Variance with Original Final Actual Final Budget REVENUES Total revenues - - - - EXPENDITURES Current: Total current - - - - Debt service: Total debt service - - - - Capital outlay: Total capital outlay - - - - Total expenditures - - - - Excess (deficiency) of revenues over expenditures - - - - OTHER FINANCING SOURCES (USES) Total other financing sources (uses) - - - - Net change in fund balances - - - - Fund balances - beginning $ (12,636) $ (12,636) $ (12,636) $ - Fund balances - ending $ (12,636) $ (12,636) $ (12,636) $ - Budgeted Amounts Attachment 1 Page 758 of 858 City of Ukiah, California Financial Section: Supplementary Information | Budget Comparisons | Nonmajor Funds Page | 122 City of Ukiah, California Advanced Planning Schedule of Revenue, Expenditures, and Change in Fund Balances Budget and Actual Variance with Original Final Actual Final Budget REVENUES Charges for service $ - $ - $ 59,466 $ 59,466 Use of money and property 2,727 2,727 1,687 (1,040) Intergovernmental - 40,000 - (40,000) Total revenues 2,727 42,727 61,153 18,426 EXPENDITURES Current: Housing and community development 1,175 438,133 4,092 434,041 Total current 1,175 438,133 4,092 434,041 Debt service: Total debt service - - - - Capital outlay: Total capital outlay - - - - Total expenditures 1,175 438,133 4,092 434,041 Excess (deficiency) of revenues over expenditures 1,552 (395,406) 57,061 452,467 OTHER FINANCING SOURCES (USES) Total other financing sources (uses) - - - - Net change in fund balances 1,552 (395,406) 57,061 452,467 Fund balances - beginning 239,580 239,580 239,580 - Fund balances - ending $ 241,132 $ (155,826) $ 296,641 $ 452,467 Budgeted Amounts Attachment 1 Page 759 of 858 City of Ukiah, California Financial Section: Supplementary Information | Budget Comparisons | Nonmajor Funds Page | 123 City of Ukiah, California Highway User Tax (Gas Tax) Schedule of Revenue, Expenditures, and Change in Fund Balances Budget and Actual Variance with Original Final Actual Final Budget REVENUES Use of money and property $ - $ - $ 224 $ 224 Intergovernmental 674,368 674,368 663,357 (11,011) Total revenues 674,368 674,368 663,581 (10,787) EXPENDITURES Current: Public works 69,181 59,581 64,075 (4,494) Total current 69,181 59,581 64,075 (4,494) Debt service: Total debt service - - - - Capital outlay: Public works - 1,452,000 1,052,735 399,265 Total capital outlay - 1,452,000 1,052,735 399,265 Total expenditures 69,181 1,511,581 1,116,810 394,771 Excess (deficiency) of revenues over expenditures 605,187 (837,213) (453,229) 383,984 OTHER FINANCING SOURCES (USES) Transfers out (4,000) (4,000) (4,000) - Total other financing sources (uses) (4,000) (4,000) (4,000) - Net change in fund balances 601,187 (841,213) (457,229) 383,984 Fund balances - beginning (44,756) (44,756) (44,756) - Fund balances - ending $ 556,431 $ (885,969) $ (501,985) $ 383,984 Budgeted Amounts Attachment 1 Page 760 of 858 City of Ukiah, California Financial Section: Supplementary Information | Budget Comparisons | Nonmajor Funds Page | 124 City of Ukiah, California Signalization Schedule of Revenue, Expenditures, and Change in Fund Balances Budget and Actual Variance with Original Final Actual Final Budget REVENUES Use of money and property $ - $ - $ 2,005 $ 2,005 Total revenues - - 2,005 2,005 EXPENDITURES Current: Total current - - - - Debt service: Total debt service - - - - Capital outlay: Total capital outlay - - - - Total expenditures - - - - Excess (deficiency) of revenues over expenditures - - 2,005 2,005 OTHER FINANCING SOURCES (USES) Total other financing sources (uses) - - - - Net change in fund balances - - 2,005 2,005 Fund balances - beginning 379,300 379,300 379,300 - Fund balances - ending $ 379,300 $ 379,300 $ 381,305 $ 2,005 Budgeted Amounts Attachment 1 Page 761 of 858 City of Ukiah, California Financial Section: Supplementary Information | Budget Comparisons | Nonmajor Funds Page | 125 City of Ukiah, California 1998 STIP Augmentation Schedule of Revenue, Expenditures, and Change in Fund Balances Budget and Actual Variance with Original Final Actual Final Budget REVENUES Use of money and property $ - $ - $ 47 $ 47 Total revenues - - 47 47 EXPENDITURES Current: Total current - - - - Debt service: Total debt service - - - - Capital outlay: Total capital outlay - - - - Total expenditures - - - - Excess (deficiency) of revenues over expenditures - - 47 47 OTHER FINANCING SOURCES (USES) Total other financing sources (uses) - - - - Net change in fund balances - - 47 47 Fund balances - beginning (24) (24) (24) - Fund balances - ending $ (24) $ (24) $ 23 $ 47 Budgeted Amounts Attachment 1 Page 762 of 858 City of Ukiah, California Financial Section: Supplementary Information | Budget Comparisons | Nonmajor Funds Page | 126 City of Ukiah, California SB 325 Reimbursement Schedule of Revenue, Expenditures, and Change in Fund Balances Budget and Actual Variance with Original Final Actual Final Budget REVENUES Use of money and property $ - $ - $ 704 $ 704 Intergovernmental 40,000 40,000 35,000 (5,000) Total revenues 40,000 40,000 35,704 (4,296) EXPENDITURES Current: Public works 46,121 50,864 11,469 39,395 Total current 46,121 50,864 11,469 39,395 Debt service: Total debt service - - - - Capital outlay: Total capital outlay - - - - Total expenditures 46,121 50,864 11,469 39,395 Excess (deficiency) of revenues over expenditures (6,121) (10,864) 24,235 35,099 OTHER FINANCING SOURCES (USES) Total other financing sources (uses) - - - - Net change in fund balances (6,121) (10,864) 24,235 35,099 Fund balances - beginning 78,743 78,743 78,743 - Fund balances - ending $ 72,622 $ 67,879 $ 102,978 $ 35,099 Budgeted Amounts Attachment 1 Page 763 of 858 City of Ukiah, California Financial Section: Supplementary Information | Budget Comparisons | Nonmajor Funds Page | 127 City of Ukiah, California S.T.P. Schedule of Revenue, Expenditures, and Change in Fund Balances Budget and Actual Variance with Original Final Actual Final Budget REVENUES Use of money and property $ - $ - $ 1,308 $ 1,308 Intergovernmental - 388,489 32,063 (356,426) Total revenues - 388,489 33,371 (355,118) EXPENDITURES Current: Total current - - - - Debt service: Total debt service - - - - Capital outlay: Public works - 498,116 80,352 417,764 Total capital outlay - 498,116 80,352 417,764 Total expenditures - 498,116 80,352 417,764 Excess (deficiency) of revenues over expenditures - (109,627) (46,981) 62,646 OTHER FINANCING SOURCES (USES) Total other financing sources (uses) - - - - Net change in fund balances - (109,627) (46,981) 62,646 Fund balances - beginning 216,856 216,856 216,856 - Fund balances - ending $ 216,856 $ 107,229 $ 169,875 $ 62,646 Budgeted Amounts Attachment 1 Page 764 of 858 City of Ukiah, California Financial Section: Supplementary Information | Budget Comparisons | Nonmajor Funds Page | 128 City of Ukiah, California Trans-Traffic Congestion Relief Schedule of Revenue, Expenditures, and Change in Fund Balances Budget and Actual Variance with Original Final Actual Final Budget REVENUES Use of money and property $ - $ - $ 550 $ 550 Intergovernmental 16,000 16,000 - (16,000) Total revenues 16,000 16,000 550 (15,450) EXPENDITURES Current: Total current - - - - Debt service: Total debt service - - - - Capital outlay: Total capital outlay - - - - Total expenditures - - - - Excess (deficiency) of revenues over expenditures 16,000 16,000 550 (15,450) OTHER FINANCING SOURCES (USES) Transfers in - - 478,156 478,156 Total other financing sources (uses) - - 478,156 478,156 Net change in fund balances 16,000 16,000 478,706 462,706 Fund balances - beginning (478,659) (478,659) (478,659) - Fund balances - ending $ (462,659) $ (462,659) $ 47 $ 462,706 Budgeted Amounts Attachment 1 Page 765 of 858 City of Ukiah, California Financial Section: Supplementary Information | Budget Comparisons | Nonmajor Funds Page | 129 City of Ukiah, California CDBG Program Income Schedule of Revenue, Expenditures, and Change in Fund Balances Budget and Actual Variance with Original Final Actual Final Budget REVENUES Use of money and property $ - $ - $ 151,180 $ 151,180 Total revenues - - 151,180 151,180 EXPENDITURES Current: Housing and community development 50,000 50,000 192,351 (142,351) Economic development and redevelopment - 13,500 - 13,500 Total current 50,000 63,500 192,351 (128,851) Debt service: Total debt service - - - - Capital outlay: Total capital outlay - - - - Total expenditures 50,000 63,500 192,351 (128,851) Excess (deficiency) of revenues over expenditures (50,000) (63,500) (41,171) 22,329 OTHER FINANCING SOURCES (USES) Total other financing sources (uses) - - - - Net change in fund balances (50,000) (63,500) (41,171) 22,329 Fund balances - beginning 502,242 502,242 502,242 - Fund balances - ending $ 452,242 $ 438,742 $ 461,071 $ 22,329 Budgeted Amounts Attachment 1 Page 766 of 858 City of Ukiah, California Financial Section: Supplementary Information | Budget Comparisons | Nonmajor Funds Page | 130 City of Ukiah, California CASP Certification and Training Schedule of Revenue, Expenditures, and Change in Fund Balances Budget and Actual Variance with Original Final Actual Final Budget REVENUES Use of money and property $ - $ - $ (353) $ (353) Intergovernmental - - 50,724 50,724 Total revenues - - 50,371 50,371 EXPENDITURES Current: Total current - - - - Debt service: Total debt service - - - - Capital outlay: Total capital outlay - - - - Total expenditures - - - - Excess (deficiency) of revenues over expenditures - - 50,371 50,371 OTHER FINANCING SOURCES (USES) Total other financing sources (uses) - - - - Net change in fund balances - - 50,371 50,371 Fund balances - beginning - - - - Fund balances - ending $ - $ - $ 50,371 $ 50,371 Budgeted Amounts Attachment 1 Page 767 of 858 City of Ukiah, California Financial Section: Supplementary Information | Budget Comparisons | Nonmajor Funds Page | 131 City of Ukiah, California Asset Seizure Schedule of Revenue, Expenditures, and Change in Fund Balances Budget and Actual Variance with Original Final Actual Final Budget REVENUES Use of money and property $ 1,832 $ 1,832 $ 433 $ (1,399) Intergovernmental 35,000 35,000 45,099 10,099 Total revenues 36,832 36,832 45,532 8,700 EXPENDITURES Current: Public safety 79,000 85,856 49,329 36,527 Total current 79,000 85,856 49,329 36,527 Debt service: Total debt service - - - - Capital outlay: Total capital outlay - - - - Total expenditures 79,000 85,856 49,329 36,527 Excess (deficiency) of revenues over expenditures (42,168) (49,024) (3,797) 45,227 OTHER FINANCING SOURCES (USES) Total other financing sources (uses) - - - - Net change in fund balances (42,168) (49,024) (3,797) 45,227 Fund balances - beginning 98,517 98,517 98,517 - Fund balances - ending $ 56,349 $ 49,493 $ 94,720 $ 45,227 Budgeted Amounts Attachment 1 Page 768 of 858 City of Ukiah, California Financial Section: Supplementary Information | Budget Comparisons | Nonmajor Funds Page | 132 City of Ukiah, California Sup. Law Enforcement Svc. (SLESF) Schedule of Revenue, Expenditures, and Change in Fund Balances Budget and Actual Variance with Original Final Actual Final Budget REVENUES Use of money and property $ - $ - $ 415 $ 415 Intergovernmental 140,454 140,454 121,309 (19,145) Total revenues 140,454 140,454 121,724 (18,730) EXPENDITURES Current: Public safety 126,557 126,557 123,905 2,652 Total current 126,557 126,557 123,905 2,652 Debt service: Total debt service - - - - Capital outlay: Total capital outlay - - - - Total expenditures 126,557 126,557 123,905 2,652 Excess (deficiency) of revenues over expenditures 13,897 13,897 (2,181) (16,078) OTHER FINANCING SOURCES (USES) Total other financing sources (uses) - - - - Net change in fund balances 13,897 13,897 (2,181) (16,078) Fund balances - beginning 180,955 180,955 180,955 - Fund balances - ending $ 194,852 $ 194,852 $ 178,774 $ (16,078) Budgeted Amounts Attachment 1 Page 769 of 858 City of Ukiah, California Financial Section: Supplementary Information | Budget Comparisons | Nonmajor Funds Page | 133 City of Ukiah, California Community-Based Transitional Housing Schedule of Revenue, Expenditures, and Change in Fund Balances Budget and Actual Variance with Original Final Actual Final Budget REVENUES Use of money and property $ 7,206 $ 7,206 $ 4,119 $ (3,087) Total revenues 7,206 7,206 4,119 (3,087) EXPENDITURES Current: Public safety 244,939 244,939 221,293 23,646 Housing and community development - - 341 (341) Total current 244,939 244,939 221,634 23,305 Debt service: Total debt service - - - - Capital outlay: Total capital outlay - - - - Total expenditures 244,939 244,939 221,634 23,305 Excess (deficiency) of revenues over expenditures (237,733) (237,733) (217,515) 20,218 OTHER FINANCING SOURCES (USES) Total other financing sources (uses) - - - - Net change in fund balances (237,733) (237,733) (217,515) 20,218 Fund balances - beginning 684,388 684,388 684,388 - Fund balances - ending $ 446,655 $ 446,655 $ 466,873 $ 20,218 Budgeted Amounts Attachment 1 Page 770 of 858 City of Ukiah, California Financial Section: Supplementary Information | Budget Comparisons | Nonmajor Funds Page | 134 City of Ukiah, California Asset Forfeiture 11470.2 H&S Schedule of Revenue, Expenditures, and Change in Fund Balances Budget and Actual Variance with Original Final Actual Final Budget REVENUES Use of money and property $ 900 $ 900 $ 394 $ (506) Intergovernmental 31,250 31,250 - (31,250) Total revenues 32,150 32,150 394 (31,756) EXPENDITURES Current: Public safety 40,000 40,000 5,241 34,759 Total current 40,000 40,000 5,241 34,759 Debt service: Total debt service - - - - Capital outlay: Total capital outlay - - - - Total expenditures 40,000 40,000 5,241 34,759 Excess (deficiency) of revenues over expenditures (7,850) (7,850) (4,847) 3,003 OTHER FINANCING SOURCES (USES) Total other financing sources (uses) - - - - Net change in fund balances (7,850) (7,850) (4,847) 3,003 Fund balances - beginning 67,518 67,518 67,518 - Fund balances - ending $ 59,668 $ 59,668 $ 62,671 $ 3,003 Budgeted Amounts Attachment 1 Page 771 of 858 City of Ukiah, California Financial Section: Supplementary Information | Budget Comparisons | Nonmajor Funds Page | 135 City of Ukiah, California Special Revenue - Police Schedule of Revenue, Expenditures, and Change in Fund Balances Budget and Actual Variance with Original Final Actual Final Budget REVENUES Use of money and property $ - $ - $ (328) $ (328) Intergovernmental 125,000 125,000 125,000 - Total revenues 125,000 125,000 124,672 (328) EXPENDITURES Current: Total current - - - - Debt service: Total debt service - - - - Capital outlay: Total capital outlay - - - - Total expenditures - - - - Excess (deficiency) of revenues over expenditures 125,000 125,000 124,672 (328) OTHER FINANCING SOURCES (USES) Transfers out (125,000) (125,000) (125,000) - Total other financing sources (uses) (125,000) (125,000) (125,000) - Net change in fund balances - - (328) (328) Fund balances - beginning 2,943 2,943 2,943 - Fund balances - ending $ 2,943 $ 2,943 $ 2,615 $ (328) Budgeted Amounts Attachment 1 Page 772 of 858 City of Ukiah, California Financial Section: Supplementary Information | Budget Comparisons | Nonmajor Funds Page | 136 City of Ukiah, California American Rescue Fund Schedule of Revenue, Expenditures, and Change in Fund Balances Budget and Actual Variance with Original Final Actual Final Budget REVENUES Use of money and property $ - $ - $ 468 $ 468 Total revenues - - 468 468 EXPENDITURES Current: Total current - - - - Debt service: Total debt service - - - - Capital outlay: Total capital outlay - - - - Total expenditures - - - - Excess (deficiency) of revenues over expenditures - - 468 468 OTHER FINANCING SOURCES (USES) Transfers out - (156,419) - 156,419 Total other financing sources (uses) - (156,419) - 156,419 Net change in fund balances - (156,419) 468 156,887 Fund balances - beginning - - - - Fund balances - ending $ - $ (156,419) $ 468 $ 156,887 Budgeted Amounts Attachment 1 Page 773 of 858 City of Ukiah, California Financial Section: Supplementary Information | Budget Comparisons | Nonmajor Funds Page | 137 City of Ukiah, California Transfer Station Schedule of Revenue, Expenditures, and Change in Fund Balances Budget and Actual Variance with Original Final Actual Final Budget REVENUES Use of money and property $ 415,000 $ 415,000 $ 461,404 $ 46,404 Total revenues 415,000 415,000 461,404 46,404 EXPENDITURES Current: Public works - 299 299 - Total current - 299 299 - Debt service: Total debt service - - - - Capital outlay: Total capital outlay - - - - Total expenditures - 299 299 - Excess (deficiency) of revenues over expenditures 415,000 414,701 461,105 46,404 OTHER FINANCING SOURCES (USES) Transfers out (385,000) (385,000) (419,635) (34,635) Total other financing sources (uses) (385,000) (385,000) (419,635) (34,635) Net change in fund balances 30,000 29,701 41,470 11,769 Fund balances - beginning 35,319 35,319 35,319 - Fund balances - ending $ 65,319 $ 65,020 $ 76,789 $ 11,769 Budgeted Amounts Attachment 1 Page 774 of 858 City of Ukiah, California Financial Section: Supplementary Information | Budget Comparisons | Nonmajor Funds Page | 138 City of Ukiah, California Equipment Reserve Schedule of Revenue, Expenditures, and Change in Fund Balances Budget and Actual Variance with Original Final Actual Final Budget REVENUES Use of money and property $ 5,221 $ 5,221 $ 2,228 $ (2,993) Total revenues 5,221 5,221 2,228 (2,993) EXPENDITURES Current: General government 2,249 2,249 2,483 (234) Total current 2,249 2,249 2,483 (234) Debt service: Total debt service - - - - Capital outlay: Total capital outlay - - - - Total expenditures 2,249 2,249 2,483 (234) Excess (deficiency) of revenues over expenditures 2,972 2,972 (255) (3,227) OTHER FINANCING SOURCES (USES) Total other financing sources (uses) - - - - Net change in fund balances 2,972 2,972 (255) (3,227) Fund balances - beginning 380,824 380,824 380,824 - Fund balances - ending $ 383,796 $ 383,796 $ 380,569 $ (3,227) Budgeted Amounts Attachment 1 Page 775 of 858 City of Ukiah, California Financial Section: Supplementary Information | Budget Comparisons | Nonmajor Funds Page | 139 City of Ukiah, California Special Projects Reserve Schedule of Revenue, Expenditures, and Change in Fund Balances Budget and Actual Variance with Original Final Actual Final Budget REVENUES Total revenues - - - - EXPENDITURES Current: Recreation and culture $ - $ - $ 19,906 $ (19,906) Total current - - 19,906 (19,906) Debt service: Total debt service - - - - Capital outlay: Total capital outlay - - - - Total expenditures - - 19,906 (19,906) Excess (deficiency) of revenues over expenditures - - (19,906) (19,906) OTHER FINANCING SOURCES (USES) Total other financing sources (uses) - - - - Net change in fund balances - - (19,906) (19,906) Fund balances - beginning 908,523 908,523 908,523 - Fund balances - ending $ 908,523 $ 908,523 $ 888,617 $ (19,906) Budgeted Amounts Attachment 1 Page 776 of 858 City of Ukiah, California Financial Section: Supplementary Information | Budget Comparisons | Nonmajor Funds Page | 140 City of Ukiah, California Park Development Fees Schedule of Revenue, Expenditures, and Change in Fund Balances Budget and Actual Variance with Original Final Actual Final Budget REVENUES Charges for service $ - $ - $ 11,468 $ 11,468 Use of money and property - - 169 169 Total revenues - - 11,637 11,637 EXPENDITURES Current: Total current - - - - Debt service: Total debt service - - - - Capital outlay: Total capital outlay - - - - Total expenditures - - - - Excess (deficiency) of revenues over expenditures - - 11,637 11,637 OTHER FINANCING SOURCES (USES) Total other financing sources (uses) - - - - Net change in fund balances - - 11,637 11,637 Fund balances - beginning 30,567 30,567 30,567 - Fund balances - ending $ 30,567 $ 30,567 $ 42,204 $ 11,637 Budgeted Amounts Attachment 1 Page 777 of 858 City of Ukiah, California Financial Section: Supplementary Information | Budget Comparisons | Nonmajor Funds Page | 141 City of Ukiah, California Anton Stadium Schedule of Revenue, Expenditures, and Change in Fund Balances Budget and Actual Variance with Original Final Actual Final Budget REVENUES Use of money and property $ - $ - $ 74 $ 74 Total revenues - - 74 74 EXPENDITURES Current: Total current - - - - Debt service: Total debt service - - - - Capital outlay: Recreation and culture - 2,092 2,092 - Total capital outlay - 2,092 2,092 - Total expenditures - 2,092 2,092 - Excess (deficiency) of revenues over expenditures - (2,092) (2,018) 74 OTHER FINANCING SOURCES (USES) Total other financing sources (uses) - - - - Net change in fund balances - (2,092) (2,018) 74 Fund balances - beginning 13,524 13,524 13,524 - Fund balances - ending $ 13,524 $ 11,432 $ 11,506 $ 74 Budgeted Amounts Attachment 1 Page 778 of 858 City of Ukiah, California Financial Section: Supplementary Information | Budget Comparisons | Nonmajor Funds Page | 142 City of Ukiah, California Observatory Park Schedule of Revenue, Expenditures, and Change in Fund Balances Budget and Actual Variance with Original Final Actual Final Budget REVENUES Use of money and property $ - $ - $ 14 $ 14 Total revenues - - 14 14 EXPENDITURES Current: Total current - - - - Debt service: Total debt service - - - - Capital outlay: Total capital outlay - - - - Total expenditures - - - - Excess (deficiency) of revenues over expenditures - - 14 14 OTHER FINANCING SOURCES (USES) Total other financing sources (uses) - - - - Net change in fund balances - - 14 14 Fund balances - beginning 2,460 2,460 2,460 - Fund balances - ending $ 2,460 $ 2,460 $ 2,474 $ 14 Budgeted Amounts Attachment 1 Page 779 of 858 City of Ukiah, California Financial Section: Supplementary Information | Budget Comparisons | Nonmajor Funds Page | 143 City of Ukiah, California Playground & Park Amenities Schedule of Revenue, Expenditures, and Change in Fund Balances Budget and Actual Variance with Original Final Actual Final Budget REVENUES Use of money and property $ - $ - $ 15 $ 15 Total revenues - - 15 15 EXPENDITURES Current: Total current - - - - Debt service: Total debt service - - - - Capital outlay: Total capital outlay - - - - Total expenditures - - - - Excess (deficiency) of revenues over expenditures - - 15 15 OTHER FINANCING SOURCES (USES) Total other financing sources (uses) - - - - Net change in fund balances - - 15 15 Fund balances - beginning 2,673 2,673 2,673 - Fund balances - ending $ 2,673 $ 2,673 $ 2,688 $ 15 Budgeted Amounts Attachment 1 Page 780 of 858 City of Ukiah, California Financial Section: Supplementary Information | Budget Comparisons | Nonmajor Funds Page | 144 City of Ukiah, California Swimming Pool Schedule of Revenue, Expenditures, and Change in Fund Balances Budget and Actual Variance with Original Final Actual Final Budget REVENUES Use of money and property $ - $ - $ 3 $ 3 Total revenues - - 3 3 EXPENDITURES Current: Total current - - - - Debt service: Total debt service - - - - Capital outlay: Total capital outlay - - - - Total expenditures - - - - Excess (deficiency) of revenues over expenditures - - 3 3 OTHER FINANCING SOURCES (USES) Total other financing sources (uses) - - - - Net change in fund balances - - 3 3 Fund balances - beginning (135,759) (135,759) (135,759) - Fund balances - ending $ (135,759) $ (135,759) $ (135,756) $ 3 Budgeted Amounts Attachment 1 Page 781 of 858 City of Ukiah, California Financial Section: Supplementary Information | Budget Comparisons | Nonmajor Funds Page | 145 City of Ukiah, California Riverside Park Schedule of Revenue, Expenditures, and Change in Fund Balances Budget and Actual Variance with Original Final Actual Final Budget REVENUES Grants contributions and donations $ 1,038,614 $ 1,038,614 $ 71,975 $ (966,639) Use of money and property - - 4 4 Total revenues 1,038,614 1,038,614 71,979 (966,635) EXPENDITURES Current: Total current - - - - Debt service: Total debt service - - - - Capital outlay: Recreation and culture 832,005 1,029,852 61,210 968,642 Total capital outlay 832,005 1,029,852 61,210 968,642 Total expenditures 832,005 1,029,852 61,210 968,642 Excess (deficiency) of revenues over expenditures 206,609 8,762 10,769 2,007 OTHER FINANCING SOURCES (USES) Total other financing sources (uses) - - - - Net change in fund balances 206,609 8,762 10,769 2,007 Fund balances - beginning (4,736) (4,736) (4,736) - Fund balances - ending $ 201,873 $ 4,026 $ 6,033 $ 2,007 Budgeted Amounts Attachment 1 Page 782 of 858 City of Ukiah, California Financial Section: Supplementary Information | Budget Comparisons | Nonmajor Funds Page | 146 City of Ukiah, California Skate Park Schedule of Revenue, Expenditures, and Change in Fund Balances Budget and Actual Variance with Original Final Actual Final Budget REVENUES Use of money and property $ - $ - $ 64 $ 64 Total revenues - - 64 64 EXPENDITURES Current: Total current - - - - Debt service: Total debt service - - - - Capital outlay: Total capital outlay - - - - Total expenditures - - - - Excess (deficiency) of revenues over expenditures - - 64 64 OTHER FINANCING SOURCES (USES) Total other financing sources (uses) - - - - Net change in fund balances - - 64 64 Fund balances - beginning 11,842 11,842 11,842 - Fund balances - ending $ 11,842 $ 11,842 $ 11,906 $ 64 Budgeted Amounts Attachment 1 Page 783 of 858 City of Ukiah, California Financial Section: Supplementary Information | Budget Comparisons | Nonmajor Funds Page | 147 City of Ukiah, California Softball Complex Schedule of Revenue, Expenditures, and Change in Fund Balances Budget and Actual Variance with Original Final Actual Final Budget REVENUES Use of money and property $ - $ - $ 37 $ 37 Total revenues - - 37 37 EXPENDITURES Current: Total current - - - - Debt service: Total debt service - - - - Capital outlay: Total capital outlay - - - - Total expenditures - - - - Excess (deficiency) of revenues over expenditures - - 37 37 OTHER FINANCING SOURCES (USES) Total other financing sources (uses) - - - - Net change in fund balances - - 37 37 Fund balances - beginning 6,809 6,809 6,809 - Fund balances - ending $ 6,809 $ 6,809 $ 6,846 $ 37 Budgeted Amounts Attachment 1 Page 784 of 858 City of Ukiah, California Financial Section: Supplementary Information | Budget Comparisons | Nonmajor Funds Page | 148 City of Ukiah, California Rail Trail Schedule of Revenue, Expenditures, and Change in Fund Balances Budget and Actual Variance with Original Final Actual Final Budget REVENUES Grants contributions and donations $ - $ - $ 299,015 $ 299,015 Interest, rent, and concessions - - (372) (372) Total revenues - - 298,643 298,643 EXPENDITURES Current: Total current - - - - Debt service: Total debt service - - - - Capital outlay: Public works - 10,331 - 10,331 Total capital outlay - 10,331 - 10,331 Total expenditures - 10,331 - 10,331 Excess (deficiency) of revenues over expenditures - (10,331) 298,643 308,974 OTHER FINANCING SOURCES (USES) Total other financing sources (uses) - - - - Net change in fund balances - (10,331) 298,643 308,974 Fund balances - beginning (320,729) (320,729) (320,729) - Fund balances - ending $ (320,729) $ (331,060) $ (22,086) $ 308,974 Budgeted Amounts Attachment 1 Page 785 of 858 City of Ukiah, California Financial Section: Supplementary Information | Budget Comparisons | Nonmajor Funds Page | 149 City of Ukiah, California Riparian Corridor Enhancement Schedule of Revenue, Expenditures, and Change in Fund Balances Budget and Actual Variance with Original Final Actual Final Budget REVENUES Use of money and property $ 1,850 $ 1,850 $ 790 $ (1,060) Total revenues 1,850 1,850 790 (1,060) EXPENDITURES Current: Parks, buildings, and grounds 797 797 880 (83) Total current 797 797 880 (83) Debt service: Total debt service - - - - Capital outlay: Total capital outlay - - - - Total expenditures 797 797 880 (83) Excess (deficiency) of revenues over expenditures 1,053 1,053 (90) (1,143) OTHER FINANCING SOURCES (USES) Total other financing sources (uses) - - - - Net change in fund balances 1,053 1,053 (90) (1,143) Fund balances - beginning 146,126 146,126 146,126 - Fund balances - ending $ 147,179 $ 147,179 $ 146,036 $ (1,143) Budgeted Amounts Attachment 1 Page 786 of 858 City of Ukiah, California Financial Section: Supplementary Information | Combining Statements Page | 150 Combining Nonmajor Enterprise funds Parking District #1 The Parking District #1 Fund is used to account for the operating activities of the City's parking district. Ambulance Services The Ambulance Services fund is used to account for resources and activities of the Ukiah Valley Fire Authority in providing ambulatory services. Golf The Golf Fund is issued to account for activities related to the City's municipal golf course, which is managed by a contracted, private vendor. Conference Center The Conference Center Fund is used to account for activities of the Ukiah Valley Conference Center. Airport The Airport Fund is the primary fund used to account for the operating activities of the City's municipal airport. Street Lighting The Street Lighting Fund is used to account for resources accumulated for street light operation, maintenance and capital planning. Attachment 1 Page 787 of 858 City of Ukiah, California Financial Section: Supplementary Information | Combining Statements Page | 151 City of Ukiah, California Combining Statement of Net Position Nonmajor Enterprise Funds June 30, 2021 Parking District Ambulance Services Golf Conference Center Airport Street Lighting Total Nonmajor Enterprise funds ASSETS Current assets: Cash and investments $ 2,746 $ 70,862 $ 74,362 $ 464 $ 4,134 $ 5,440 $ 158,008 Accounts receivable 25,191 - 500 9,565 6,198 20,946 62,400 Interest receivable 1 16 13 - (121) - (91) Grants and subventions receivable - - - - 659,279 - 659,279 Total current assets 27,938 70,878 74,875 10,029 669,490 26,386 879,596 Noncurrent assets: Notes receivable - - 5,500 - - - 5,500 Advances to other funds - - 716,578 - - - 716,578 Land 183,871 - 965,284 372,750 271,957 - 1,793,862 Construction in progress - - - - 464,163 364,598 828,761 Infrastructure and network 77,682 - 340,353 - 6,301,252 117,736 6,837,023 Buildings and improvements - - 439,213 2,294,473 1,651,825 - 4,385,511 Machinery equipment and vehicles 42,876 91,529 - - 627,608 - 762,013 Less accumulated depreciation (58,276) (11,887) (579,844) (1,261,959) (2,651,060) (17,236) (4,580,262) Total noncurrent assets 246,153 79,642 1,887,084 1,405,264 6,665,745 465,098 10,748,986 Total assets 274,091 150,520 1,961,959 1,415,293 7,335,235 491,484 11,628,582 DEFERRED OUTFLOWS OF RESOURCES Deferred outflow of resources related to pension - - 72,546 391,750 1,230,384 - 1,694,680 Total deferred outflows of resources - - 72,546 391,750 1,230,384 - 1,694,680 Total assets and deferred outflows of resources $ 274,091 $ 150,520 $ 2,034,505 $ 1,807,043 $ 8,565,619 $ 491,484 $ 13,323,262 LIABILITIES Current liabilities: Accounts payable 8,295 15,237 60,115 5,703 103,299 162,566 355,215 Accrued payroll liabilities - - 1,012 5,163 19,949 - 26,124 Due to other funds - - - 27,500 420,000 - 447,500 Deposits payable - - - 2,162 3,562 - 5,724 Interest payable - - - - 1,395 - 1,395 Compensated absences - current - - 202 980 2,797 - 3,979 Long-term obligations - current - - 1,070 538 28,679 - 30,287 Total current liabilities 8,295 15,237 62,399 42,046 579,681 162,566 870,224 Noncurrent liabilities: Advance from other funds 54,136 - 930,200 56,595 - 186,270 1,227,201 Installment obligations - - 74,595 37,534 1,406,042 - 1,518,171 Net pension liability - - 74,463 402,098 1,262,886 - 1,739,447 Compensated absences - - 1,819 8,829 25,173 - 35,821 Total noncurrent liabilities 54,136 - 1,081,077 505,056 2,694,101 186,270 4,520,640 Total liabilities 62,431 15,237 1,143,476 547,102 3,273,782 348,836 5,390,864 DEFERRED INFLOWS OF RESOURCES Deferred inflow of resources related to pension - - 35 189 594 - 818 Total deferred inflows of resources - - 35 189 594 - 818 Total liabilities and deferred inflows of resources 62,431 15,237 1,143,511 547,291 3,274,376 348,836 5,391,682 NET POSITION Net investment in capital assets 246,153 79,642 1,165,006 1,405,264 6,506,110 465,098 9,867,273 Restricted for: Unrestricted (34,493) 55,641 (274,012) (145,512) (1,214,867) (322,450) (1,935,693) Total net position $ 211,660 $ 135,283 $ 890,994 $ 1,259,752 $ 5,291,243 $ 142,648 $ 7,931,580 Attachment 1 Page 788 of 858 City of Ukiah, California Financial Section: Supplementary Information | Combining Statements Page | 152 City of Ukiah, California Combining Statement of Revenues, expenses, and Changes in Net Position Nonmajor Governmental Funds For the Fiscal Year Ended June 30, 2021 Parking District Ambulance Services Golf Conference Center Airport Street Lighting Total Enterprise funds OPERATING REVENUES Charges for service $ 34,214 $ 79,891 $ - $ 6,053 $ 26,781 $ 183,278 $ 330,217 Licenses and permits 26,748 - - - - - 26,748 Fines penalties and forfeitures 39,717 - - - - - 39,717 Facility rental - - 38,500 203,947 384,546 - 626,993 Fuel sales - - - - 975,786 - 975,786 Miscellaneous - - - - 3,082 - 3,082 Total operating revenues 100,679 79,891 38,500 210,000 1,390,195 183,278 2,002,543 OPERATING EXPENSES General and administrative 24,020 5,818 26,081 57,961 188,525 26,216 328,621 Maintenance and operations 110,234 37,680 115,049 (441,712) 1,015,960 155,910 993,121 Fuel - - - - 522,388 - 522,388 Depreciation 2,424 11,888 2,236 45,889 109,724 2,943 175,104 Total operating expenses 136,678 55,386 143,366 (337,862) 1,836,597 185,069 2,019,234 Operating income (loss) (35,999) 24,505 (104,866) 547,862 (446,402) (1,791) (16,691) NONOPERATING REVENUES (EXPENSES) Property tax 16,714 - - - - - 16,714 Intergovernmental - - 136,766 2,201 - - 138,967 Interest, rent, and concessions (213) (197) 116,131 - 1,625 392 117,738 Interest expense and fiscal charges - - - - (3,830) - (3,830) Total nonoperating revenues (expenses) 16,501 (197) 252,897 2,201 (2,205) 392 269,589 Income (loss) before contributions and transfers (19,498) 24,308 148,031 550,063 (448,607) (1,399) 252,898 Capital contributions - - - - 556,033 - 556,033 Transfers in - - 25,328 - - 200,000 225,328 Change in net position (19,498) 24,308 173,359 550,063 107,426 198,601 1,034,259 Total net position - beginning 231,158 110,975 717,635 709,689 5,183,817 (55,953) 6,897,321 Total net position - ending $ 211,660 $ 135,283 $ 890,994 $ 1,259,752 $ 5,291,243 $ 142,648 $ 7,931,580 Attachment 1 Page 789 of 858 City of Ukiah, California Financial Section: Supplementary Information | Combining Statements Page | 153 City of Ukiah, California Combining Statement of Cash Flows Nonmajor Enterprise Funds Year Ended June 30, 2021 Parking District Ambulance Services Golf Conference Center Airport Street Lighting Total CASH FLOWS FROM OPERATING ACTIVITIES Cash receipts from customers $ 88,443 $ 79,891 $ 44,500 $ 200,894 $ 1,395,687 $ 187,108 $ 1,996,523 Payments to employees - - (98,043) (167,324) (1,687,442) - (1,952,809) Payments to suppliers (106,510) (22,619) (80,300) (43,049) (3,158,848) (17,795) (3,429,121) Payments for interfund services used (24,020) (5,818) (26,081) (57,961) (188,525) (26,216) (328,621) Net cash provided (used) by operating activities (42,087) 51,454 (159,924) (67,440) (3,639,128) 143,097 (3,714,028) CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES Principal payments received on loans receivable - - 6,500 - - - 6,500 Cash received (paid) to other funds 20,446 - 115,803 27,500 420,000 200,000 783,749 Property taxes received 16,714 - - - - - 16,714 Grants and contributions - - - 2,201 - - 2,201 Proceeds from pension bonds - - 75,665 38,072 1,275,087 - 1,388,824 Net cash provided (used) by noncapital financing activities 37,160 - 197,968 67,773 1,695,087 200,000 2,197,988 CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Capital grants and contributions - - 136,766 - 2,357,952 - 2,494,718 Interest paid - - - - (3,962) - (3,962) Principal paid on capital and related debt - - - - (10,410) - (10,410) Acquisition and construction of capital assets - (1,090) (186,561) - (679,723) (364,597) (1,231,971) Net cash provided (used) by capital and related financing activities - (1,090) (49,795) - 1,663,857 (364,597) 1,248,375 CASH FLOWS FROM INVESTING ACTIVITIES Interest received (212) (207) (57) (1) 2,075 417 2,015 Net cash provided (used) by investing activities (212) (207) (57) (1) 2,075 417 2,015 Net increase (decrease) in cash and cash equivalents (5,139) 50,157 (11,808) 332 (278,109) (21,083) (265,650) Balances - beginning of year 7,885 20,705 86,170 132 282,243 26,523 423,658 Balances - end of the year $ 2,746 $ 70,862 $ 74,362 $ 464 $ 4,134 $ 5,440 $ 158,008 Reconciliation of operating income (loss) to net cash provided (used) by operating activities: Operating Income $ (35,999) $ 24,505 $ (104,866) $ 547,862 $ (446,402) $ (1,791) $ (16,691) Adjustments to reconcile operating income (loss) to net cash provided (used) by operating activities: Depreciation 2,424 11,888 2,236 45,889 109,724 2,943 175,104 Changes in assets and liabilities: Decrease (increase) in accounts receivable (12,236) - 6,000 (9,105) 5,492 3,830 (6,019) Decrease (increase) in deferred outflows - - (63,614) (278,850) (1,077,469) - (1,419,933) Increase (decrease) in accounts payable 3,724 15,061 (11,990) (2,106) (2,450,487) 138,115 (2,307,683) Increase (decrease) in accrued salaries and benefits - - (846) (4,302) (1,753) - (6,901) Increase (decrease) in compensated absences - - (662) (2,113) (2,862) - (5,637) Increase (decrease) in deferrred inflows - - (887) (11,466) (15,191) - (27,544) Increase (decrease) in net pension liability - - 14,705 (353,249) 239,820 - (98,724) Net cash provided (used) by operating activities $ (42,087) $ 51,454 $ (159,924) $ (67,440) $ (3,639,128) $ 143,097 $ (3,714,028) Attachment 1 Page 790 of 858 City of Ukiah, California Financial Section: Supplementary Information | Combining Statements Page | 154 Combining Internal Service Funds City Administrative Services City Administrative Services fund is used to account for all general administrative services provided to the City, including City Council, City Manager’s Office (City Manager, City Clerk, Emergency Management, Economic Development, etc), Finance (Accounting and Budget), Human Resources, City Attorney, and Treasury management. Worker's Comp The Worker's Compensation Fund is used to account for premiums paid for worker's compensation benefits as required by the State of California. Liability The Liability Fund is used to account for resources needed to meet liability insurance premiums and to allocate those costs to all City functions through its Cost Allocation Plan. Garage The Garage Fund is used to account for shared resources used to operate the City's central garage and corporation yard and to allocate those costs to all City functions through its Cost Allocation Plan. Purchasing The Purchasing Fund is used to account for shared resources used to maintain and implement the City's central procurement system and to allocate those costs to all City functions through its Cost Allocation Plan. Billing and Collection The Billing and Collection Fund is used to account for shared resources used to provide billing and collection service to City functions and other governmental entities and to allocate those costs accordingly through its Cost Allocation Plan. Public Safety Dispatch The Public Safety Dispatch Fund is used to account for shared resources used to provide public safety dispatch services to City departments and other governmental entities and to allocate those costs accordingly through its Cost Allocation Plan. Building & Maintenance The Building & Maintenance Fund is used to account for shared resources used to provide central building and grounds maintenance services to City departments and to allocate those costs accordingly through its Cost Allocation Plan. Information Technology (IT) The IT Fund is used to account for shared resources used to provide information technology services to City departments and to allocate those costs accordingly through its Cost Allocation Plan. Attachment 1 Page 791 of 858 City of Ukiah, California Financial Section: Supplementary Information | Combining Statements Page | 155 City of Ukiah, California Combining Statement of Net Position Internal Service Funds June 30, 2021 City Administrative Services Worker's Comp Liability Garage Purchasing Billing And Collection Public Safety Dispatch Building & Maintenance Information Technology Total Nonmajor Internal service funds ASSETS Current assets: Cash and investments $ 255,243 $ 764,943 $ 728,076 $ 62,858 $ 61,210 $ 110,090 $ 126,963 $ 1,215 $ 97,992 $ 2,208,590 Restricted cash and investments - - - - - - - 2,850,000 - 2,850,000 Accounts receivable 63,743 67,660 - 7,364 132 - - 9,086 926 148,911 Total current assets 318,986 832,603 728,076 70,222 61,342 110,090 126,963 2,860,301 98,918 5,207,501 Noncurrent assets: Advances to other funds - - - - - 545,045 - - - 545,045 Land - - - - - - - 762,562 - 762,562 Construction in progress - - - - - - - 676,013 - 676,013 Buildings and improvements - - - 327,113 - - - 189,483 - 516,596 Machinery equipment and vehicles - - - 203,051 4,769 136,669 242,007 67,705 482,172 1,136,373 Less accumulated depreciation - - - (281,810) (4,769) (136,669) (228,710) (13,410) (192,266) (857,634) Total noncurrent assets - - - 248,354 - 545,045 13,297 1,682,353 289,906 2,778,955 Total assets 318,986 832,603 728,076 318,576 61,342 655,135 140,260 4,542,654 388,824 7,986,456 DEFERRED OUTFLOWS OF RESOURCES Total deferred outflows of resources - - - - - - - - - - Total assets and deferred outflows of resources $ 318,986 $ 832,603 $ 728,076 $ 318,576 $ 61,342 $ 655,135 $ 140,260 $ 4,542,654 $ 388,824 $ 7,986,456 LIABILITIES Current liabilities: Accounts payable 147,390 - 6,151 9,513 1,529 42,160 8,117 91,629 44,340 350,829 Accrued payroll liabilities 118,847 106,765 32,729 14,395 22,231 74,139 12,836 16,942 44,817 443,701 Interest payable - - - - - - - 21,828 1,058 22,886 Compensated absences - current - - - 3,743 3,831 4,743 6,563 2,551 2,026 23,457 Long-term obligations - current - 143,486 49,583 - - - - 90,000 58,280 341,349 Total current liabilities 266,237 250,251 88,463 27,651 27,591 121,042 27,516 222,950 150,521 1,182,222 Noncurrent liabilities: Claims payable - 286,972 49,583 - - - - - - 336,555 Advance from other funds - - - - - - - 1,185,045 - 1,185,045 Compensated absences - - - 33,692 34,487 42,689 59,073 22,965 18,232 211,138 Due in more than one year - - - - - - - 2,641,128 - 2,641,128 Total noncurrent liabilities - 286,972 49,583 33,692 34,487 42,689 59,073 3,849,138 18,232 4,373,866 Total liabilities 266,237 537,223 138,046 61,343 62,078 163,731 86,589 4,072,088 168,753 5,556,088 DEFERRED INFLOWS OF RESOURCES Total deferred inflows of resources - - - - - - - - - - Total liabilities and deferred inflows of resources 266,237 537,223 138,046 61,343 62,078 163,731 86,589 4,072,088 168,753 5,556,088 NET POSITION Net investment in capital assets - - - 248,354 - - 13,297 1,682,353 289,906 2,233,910 Unrestricted 52,749 295,380 590,030 8,879 (736) 491,404 40,374 (1,211,787) (69,835) 196,458 Total net position $ 52,749 $ 295,380 $ 590,030 $ 257,233 $ (736) $ 491,404 $ 53,671 $ 470,566 $ 220,071 $ 2,430,368 Attachment 1 Page 792 of 858 City of Ukiah, California Financial Section: Supplementary Information | Combining Statements Page | 156 City of Ukiah, California Combining Statement of Revenues, expenses, and Changes in Net Position Internal Service Funds For the Fiscal Year Ended June 30, 2021 City Administrative Services Worker's Comp Liability Garage Purchasing Billing And Collection Public Safety Dispatch Building & Maintenance Information Technology Total Internal service funds OPERATING REVENUES Charges for service $ 4,701,015 $ 1,355,508 $ 1,119,095 $ 534,781 $ 617,963 $ 1,152,309 $ 1,458,574 $ 977,095 $ 1,655,099 $ 13,571,439 Miscellaneous - - - 145 - - - - - 145 Total operating revenues 4,701,015 1,355,508 1,119,095 534,926 617,963 1,152,309 1,458,574 977,095 1,655,099 13,571,584 OPERATING EXPENSES General and administrative 737,746 14,957 92,115 112,915 88,992 278,279 199,885 176,673 163,958 1,865,520 Maintenance and operations 3,975,215 1,367,078 1,124,189 416,307 522,290 1,139,103 1,265,933 654,158 1,286,502 11,750,775 Depreciation - - - 29,109 - - - 8,871 71,893 109,873 Total operating expenses 4,712,961 1,382,035 1,216,304 558,331 611,282 1,417,382 1,465,818 839,702 1,522,353 13,726,168 Operating income (loss) (11,946) (26,527) (97,209) (23,405) 6,681 (265,073) (7,244) 137,393 132,746 (154,584) NONOPERATING REVENUES (EXPENSES) Intergovernmental 63,743 - - - 132 - - 9,086 - 72,961 Interest, rent, and concessions 952 1,464 689 182 79 2,674 504 250 115 6,909 Interest expense and fiscal charges - - - - - - - (80,964) (959) (81,923) Total nonoperating revenues (expenses) 64,695 1,464 689 182 211 2,674 504 (71,628) (844) (2,053) Income (loss) before contributions and transfers 52,749 (25,063) (96,520) (23,223) 6,892 (262,399) (6,740) 65,765 131,902 (156,637) Change in net position 52,749 (25,063) (96,520) (23,223) 6,892 (262,399) (6,740) 65,765 131,902 (156,637) Total net position - beginning - 320,443 686,550 280,456 (7,628) 753,803 60,411 404,801 88,169 2,587,005 Total net position - ending $ 52,749 $ 295,380 $ 590,030 $ 257,233 $ (736) $ 491,404 $ 53,671 $ 470,566 $ 220,071 $ 2,430,368 Attachment 1 Page 793 of 858 City of Ukiah, California Financial Section: Supplementary Information | Combining Statements Page | 157 City of Ukiah, California Combining Statement of Cash Flows Internal Service Funds Year Ended June 30, 2021 Administrative Services Worker's Comp Liability Garage Purchasing Billing And Collection Public Safety Dispatch Building & Maintenance Information Technology Total CASH FLOWS FROM OPERATING ACTIVITIES Cash receipts from customers $ (63,743) $ (67,661) $ - $ 35,964 $ (132) $ 1,145 $ 267,971 $ (9,086) $ - $ 164,458 Receipts from interfund services provided - 1,355,508 1,119,095 506,386 617,963 1,151,164 1,190,603 977,095 1,655,099 8,572,913 Payments to employees (2,712,330) 60,157 - (332,918) (499,142) (774,214) (1,221,218) (401,141) (683,339) (6,564,145) Payments to suppliers (1,024,211) (1,481,830) (1,160,299) (76,516) (28,011) (313,096) (66,797) (222,103) (567,975) (4,940,838) Payments for interfund services used 3,963,269 (14,957) (92,115) (112,915) (88,992) (278,279) (199,885) (176,673) (163,958) 2,835,495 Other operating cash receipts (payments) - - - - - - - - 1,370 1,370 Net cash provided (used) by operating activities 162,985 (148,783) (133,319) 20,001 1,686 (213,280) (29,326) 168,092 241,197 69,253 CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES Cash received (paid) to other funds - 642,886 745,000 - - - - 640,000 - 2,027,886 Grants and contributions 63,743 - - - 132 - - 9,086 - 72,961 Net cash provided (used) by noncapital financing activities 63,743 642,886 745,000 - 132 - - 649,086 - 2,100,847 CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Proceeds from capital loans - - - - - - - 2,881,128 - 2,881,128 Interest paid - - - - - - - (59,136) (4,121) (63,257) Principal paid on capital and related debt - - - - - - - (150,000) (57,025) (207,025) Acquisition and construction of capital assets - - - - - - (13,296) (638,204) (122,710) (774,210) Net cash provided (used) by capital and related financing activities - - - - - - (13,296) 2,033,788 (183,856) 1,836,636 CASH FLOWS FROM INVESTING ACTIVITIES Interest received 952 3,148 1,011 253 79 4,038 734 249 222 10,686 Net cash provided (used) by investing activities 952 3,148 1,011 253 79 4,038 734 249 222 10,686 Net increase (decrease) in cash and cash equivalents 227,680 497,251 612,692 20,254 1,897 (209,242) (41,888) 2,851,215 57,563 4,017,422 Balances - beginning of year 27,563 267,692 115,384 42,604 59,313 319,332 168,851 - 40,429 1,041,168 Balances - end of the year $ 255,243 $ 764,943 $ 728,076 $ 62,858 $ 61,210 $ 110,090 $ 126,963 $ 2,851,215 $ 97,992 $ 5,058,590 Reconciliation of operating income (loss) to net cash provided (used) by operating activities: Operating Income $ (11,946) $ (26,527) $ (97,209) $ (23,405) $ 6,681 $ (265,073) $ (7,244) $ 137,393 $ 132,746 $ (154,584) Adjustments to reconcile operating income (loss) to net cash provided (used) by operating activities: Depreciation - - - 29,109 - - - 8,871 71,893 109,873 Changes in assets and liabilities: Decrease (increase) in accounts receivable (63,743) (67,661) - 7,425 (132) - - (9,086) 1,370 (131,827) Increase (decrease) in accounts payable 147,390 28,734 13,473 6,402 (1,329) 18,850 5,179 34,183 21,229 274,111 Increase (decrease) in accrued salaries and benefits 91,284 60,157 - (724) 1,630 34,788 (37,802) (560) 19,577 168,350 Increase (decrease) in compensated absences - - - 1,194 (5,164) (1,845) 10,541 (2,709) (5,618) (3,601) Increase (decrease) in claims payable - (143,486) (49,583) - - - - - - (193,069) Net cash provided (used) by operating activities $ 162,985 $ (148,783) $ (133,319) $ 20,001 $ 1,686 $ (213,280) $ (29,326) $ 168,092 $ 241,197 $ 69,253 Attachment 1 Page 794 of 858 City of Ukiah, California Financial Section: Supplementary Information | Combining Statements Page | 158 Combining Fiduciary Funds CUSTODIAL FUNDS Special Deposit Custodial Fund Resources held for outside parties that are not available for spending by the City. General Services Clearing (Accounts Receivable) Fund Resources held on a limited basis act as a clearing fund for utility billing collections. Garbage Billing and Collection Fund Resources held resulting from billing and collections of mandatory residential solid waste collection. Russian River Watershed Association Resources held on behalf of the Russian River Watershed Association, of which the City is a member and acts as its general fiscal agent. Ukiah Valley Fire Protection District The Ukiah Valley Fire District Fund is used to account for the activities of the Ukiah Valley Fire District. The City provides accounting, budget management, and other fiscal and administrative services to the District. Ukiah Valley Sanitation District Resources held for the benefit of the Ukiah Valley Sanitation District resulting from collections from sewer billing and payments to the City for share of operating and debt service costs. Attachment 1 Page 795 of 858 City of Ukiah, California Financial Section: Supplementary Information | Combining Statements Page | 159 City of Ukiah, California Combining Fiduciary Net Position Custodial Funds June 30, 2021 Special Deposit Trust General Service (Accts Recv) Garbage Billing & Coll. Russian River Watershed Assoc Ukiah Valley Fire District Ukiah Valley Sanitation District Total Custodial funds ASSETS Cash and investments $ 1,115,217 $ 23,799 $ 474,189 $ 270,770 $ - $ 16,767 $ 1,900,742 Accounts receivable 3,753 170 267,028 - 50,435 - 321,386 Interest receivable - - - 53 154 - 207 Total Cash 1,118,970 23,969 741,217 270,823 50,589 16,767 2,222,335 Total assets 1,118,970 23,969 741,217 270,823 50,589 16,767 2,222,335 LIABILITIES Accounts payable $ 15,888 $ 1,148 $ 43,907 $ 202,308 $ 53,267 $ - $ 316,518 Accrued payroll liabilities - - - - 69,244 - 69,244 Deposits payable 1,042,249 - - - - - 1,042,249 Due to other agencies - - 194,635 - 126,357 - 320,992 Intergovernmental payable 34,904 - - - - - 34,904 Due to City of Ukiah 25,929 22,821 502,675 - - - 551,425 Total liabilities 1,118,970 23,969 741,217 202,308 248,868 - 2,335,332 DEFERRED INFLOWS OF RESOURCES Total deferred inflows of resources - - - - - - - Total liabilities and deferred inflows of resources 1,118,970 23,969 741,217 202,308 248,868 - 2,335,332 NET POSITION Held for benefit of: Individuals, Organizations and Other Governments - - - 68,515 (198,279) 16,767 (112,997) Total net position $ - $ - $ - $ 68,515 $ (198,279) $ 16,767 $ (112,997) Attachment 1 Page 796 of 858 City of Ukiah, California Financial Section: Supplementary Information | Combining Statements Page | 160 City of Ukiah, California Combining Statement of Changes in Fiduciary Net Position Custodial Funds For the Fiscal Year Ended June 30, 2021 Special Deposit Trust General Service (Accts Recv) Garbage Billing & Coll. Russian River Watershed Assoc Ukiah Valley Fire District Ukiah Valley Sanitation District Total Custodial funds ADDITIONS Contributions: Grants contributions and donations $ - $ - $ - $ - $ 395,189 $ - $ 395,189 Taxes and assessments collected for other governments - - - - 1,169,487 - 1,169,487 Service charges collected for other governments - - - - 278,558 25,742 304,300 Service charges collected for other agencies - - 1,471,242 - - - 1,471,242 Intergovernmental - - - - 60,390 - 60,390 Miscellaneous - - - - 6,892 - 6,892 Members - - - 537,958 - - 537,958 Total contributions - - 1,471,242 537,958 1,910,516 25,742 3,945,458 Investment earnings: Interest, rent, and concessions - 208 482 1,156 (386) 7,532 8,992 Total investment earnings - 208 482 1,156 (386) 7,532 8,992 Net investment earnings - 208 482 1,156 (386) 7,532 8,992 Revenues Total revenues - - - - - - - Total additions - 208 1,471,724 539,114 1,910,130 33,274 3,954,450 DEDUCTIONS General and administrative - 208 - - 312,121 - 312,329 Maintenance and operations - - 6,211 - 81,059 17,585 104,855 Interest expense and fiscal charges - - - - 75,212 - 75,212 Distributions to other governments - - - 697,593 - 2,476,061 3,173,654 Payments to other agencies for service charges collected - - 668,368 - - - 668,368 Payments to City for services provided - - 797,145 - 1,732,975 - 2,530,120 Total deductions - 208 1,471,724 697,593 2,201,367 2,493,646 6,864,538 Net increase (decrease) in fiduciary net position - - - (158,479) (291,237) (2,460,372) (2,910,088) Net Position -- beginning of the year - - - 226,994 92,958 2,477,139 2,797,091 Net Position -- end of the year $ - $ - $ - $ 68,515 $ (198,279) $ 16,767 $ (112,997) Attachment 1 Page 797 of 858 Statistical Section Attachment 1 Page 798 of 858 Statistical Section Index This part of the City of Ukiah’s Annual Comprehensive Financial Report presents detailed information as a context for understanding what the information in the financial statements, footnotes, and required supplementary information says about the City's overall financial health. Financial Trends These schedules contain trend information to help the reader understand how the City's financial performance and well-being have changed over time. Net Position by Component .............................................................................................................. 164 Changes in Net Position .................................................................................................................... 165 Fund Balances, Governmental Funds ............................................................................................... 167 Changes in Fund Balances, Governmental Funds ........................................................................... 168 Revenue Capacity These schedules contain information to help the reader assess the City's ability to generate revenues. Property taxes, sales and use taxes, charges for services, licenses, permits and fees and intergovernmental revenue are the City's most significant revenue sources. Tax Revenues by Source, Governmental Funds .............................................................................. 169 Property Tax Rates ........................................................................................................................... 170 Electric Utility Rates .......................................................................................................................... 171 Wastewater Utility Rates ................................................................................................................... 172 Water Utility Rates ............................................................................................................................. 173 Top Ten Electric Usage Customers .................................................................................................. 174 Debt Capacity These schedules contain information to help the reader assess the affordability of the City's current levels of outstanding debt and the City's ability to issue additional debt in the future. Ratio of Outstanding Debt by Type ................................................................................................... 175 Ratio of General Bonded Outstanding Debt...................................................................................... 176 Attachment 1 Page 799 of 858 Demographic and Economic Information These schedules offer demographic and economic indicators to help the reader understand the environment within which the City's financial activities take place. Demographic and Economic Statistics .............................................................................................. 180 Principal Employers ........................................................................................................................... 181 Operating Information These schedules contain service and infrastructure data to help the reader understand how the information in the City's financial report relates to the services the City provides and the activities it performs. Full-time and Part-time City Employees by Function ........................................................................ 182 Sources: Unless otherwise noted, the information in these schedules is derived from the Annual Comprehensive financial reports for the relevant year. Information was available beginning with the year ended June 30, 2004 for the financial trend schedules. Attachment 1 Page 800 of 858 City of Ukiah, California Statistical Section Page | 164 Financial Trends City of Ukiah, California Net Position by Component Last Ten Fiscal Years Fiscal Year Ended June 30, 2021 (Accrual basis of accounting) For Fiscal Year Ended June 30 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Governmental activities Net investment in capital assets 26,649,167$ 27,304,019$ 27,139,213$ 27,624,813$ $ 29,088,528 $ 33,668,910 $ 38,289,548 $ 42,321,290 $ 47,339,972 $ 50,915,097 Restricted 3,086,157 3,025,432 6,021,075 12,931,066 12,263,161 11,698,264 12,610,721 12,610,721 10,544,419 15,484,736 Unrestricted 17,420,652 15,461,713 12,110,479 (20,291,488) (20,646,894) (17,337,366) (21,409,323) (18,876,394) (19,796,054) (18,505,530) Total governmental net position 47,155,976$ 45,791,164$ 45,270,767$ 20,264,391$ $ 20,704,795 $ 28,029,808 $ 29,490,946 $ 36,055,617 $ 38,088,337 $ 47,894,303 Business-type activities Net investment in capital assets 48,101,086$ 44,514,348$ 46,693,900$ 50,088,246$ $ 54,756,782 $ 46,328,983 $ 70,965,675 $ 86,114,096 $ 119,060,268 $ 126,053,127 Restricted 4,128,472 2,027,529 2,072,014 2,072,225 2,427,020 - 81,993 123,367 99,829 251,126 Unrestricted 28,366,417 32,460,639 31,604,793 26,648,008 24,215,129 31,286,562 19,917,540 16,454,313 2,219,045 (7,298,061) Total business-type net position 80,595,975$ 79,002,516$ 80,370,707$ 78,808,479$ $ 81,398,931 $ 77,615,545 $ 90,965,208 $ 102,691,776 $ 121,379,142 $ 119,006,192 Primary governmental Net investment in capital assets 74,750,253$ 71,818,367$ 73,833,113$ 77,713,059$ $ 83,845,310 $ 79,997,893 $ 109,255,223 $ 128,435,386 $ 166,400,240 $ 176,968,224 Restricted 7,214,629 5,052,961 8,093,089 15,003,291 14,690,181 11,698,264 12,692,714 12,734,088 10,644,248 15,735,862 Unrestricted 45,787,069 47,922,352 43,715,272 6,356,520 3,568,235 13,949,197 (1,491,783) (2,422,081) (17,577,009) (25,803,591) Total primary governmental net position 127,751,951$ 124,793,680$ 125,641,474$ 99,072,870$ $ 102,103,726 $ 105,645,354 $ 120,456,154 $ 138,747,393 $ 159,467,479 $ 166,900,495 Fiscal Year Source: Audited Financial Statements – Statement of Net Position Attachment 1 Page 801 of 858 City of Ukiah, California Statistical Section Page | 165 City of Ukiah, California Changes in Net Position Last Ten Fiscal Years Fiscal Year Ended June 30, 2021 (Accrual basis of accounting) For Fiscal Year Ended June 30 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Expenses Governmental activities: General government $ 2,570,568 $ 2,956,583 $ 3,715,968 $ 772,771 $ 142,792 141,713$ $ 1,856,104 $ 2,655,969 $ 99,829 $ 838,727 Public safety 9,827,504 10,514,943 9,867,900 10,563,479 11,081,325 8,887,246 11,794,779 12,167,151 12,812,411 13,659,736 Housing and community development 1,223,579 1,254,265 832,020 348,477 891,644 171,523 1,039,784 2,128,714 2,833,311 1,460,134 Public works 2,206,556 2,109,273 2,290,261 2,847,800 2,555,524 296,934 4,018,082 3,467,503 4,752,062 3,426,376 Parks and recreation 2,262,816 2,481,572 2,540,689 2,829,367 2,757,551 39,796 3,306,839 3,861,576 3,973,413 4,201,399 Economic development and redevelopment - - - - - - 273,570 299,397 403,808 290,261 Interest on long-term debt 420,132 - - - - - 59,477 176,067 165,210 992,902 Total governmental activities expenses $ 18,511,155 $ 19,316,636 $ 19,246,838 $ 17,361,894 $ 17,428,836 9,537,212$ 22,348,635 24,756,377 25,040,044 24,869,535 Business-type activities: Airport - - - - - - 1,532,905 1,360,631 1,528,285 1,857,261 Conference Center - - - - - - 369,045 500,305 503,445 (336,910) Electric 13,980,276 14,483,083 14,554,884 16,140,229 15,779,225 17,408,177 15,830,736 17,373,419 18,854,227 19,695,234 Golf - - - - - - 223,341 213,949 251,078 144,680 Landfill - - - - - - 667,140 2,114,576 4,165,711 969,800 Parking District - - - - - - 153,620 128,643 171,705 137,930 Street Lighting - - - - - - 395,694 43,349 147,861 186,765 Wastewater 8,243,340 8,637,591 8,118,315 8,229,553 8,620,824 10,092,436 10,116,164 10,979,067 11,580,850 9,659,518 Water 3,414,760 3,651,349 3,717,064 3,783,257 3,930,252 5,187,510 4,659,530 4,111,529 6,196,274 8,179,199 Disposal site 340,324 413,657 573,478 5,950,554 388,553 565,819 - - - - Nonmajor activities 2,980,963 2,648,970 2,196,295 2,287,340 2,029,634 2,816,055 - - 11,089 55,894 Total business-type activities expenses 28,959,663 29,834,650 29,160,036 36,390,933 30,748,488 36,069,997 33,948,175 36,825,468 43,410,525 40,549,371 Total primary government expenses $ 47,470,818 $ 49,151,286 $ 48,406,874 $ 53,752,827 $ 48,177,324 $ 45,607,209 $ 56,296,810 $ 61,581,845 $ 68,450,569 $ 65,418,906 Program revenues Governmental activities: Charges for services General government $ 1,630,601 $ 1,005,296 $ 1,255,815 $ 288,049 $ 258,262 333,458$ 366,171 111,355 234,487 $ 78,607 Public safety 1,080,981 1,224,421 851,328 221,156 284,562 362,711 567,592 505,451 301,503 326,986 Housing and community development 211,904 456,294 197,003 - - - 454,920 783,575 390,121 573,410 Public works 554,639 368,895 682,559 215,615 339,403 - 28,773 92,923 435,190 542,554 Parks and recreation 716,363 1,072,615 749,548 756,906 716,575 791,257 782,091 786,161 788,687 1,715,541 Economic development and redevelopment - - - - - - 256,554 259,897 7,289 250,000 Operating grants and contributions 1,062,183 1,237,955 1,097,599 1,471,799 2,283,777 1,233,883 3,007,794 2,044,901 4,431,684 7,890,530 Capital grants and contributions 3,098,450 250,992 483,992 889,024 859,772 1,325,091 618,546 1,574,928 76,898 771,125 Total governmental activities program revenues 8,355,121 5,616,468 5,317,844 3,842,549 4,742,351 4,046,400 6,082,441 6,159,191 6,665,859 12,148,753 Business-type activities: Charges for services Airport - - - - - - 1,326,141 1,541,327 1,234,045 1,390,195 Conference Center - - - - - - 367,504 369,245 274,794 210,000 Electric 16,157,282 15,140,175 14,993,910 15,243,471 15,076,565 15,971,210 15,875,141 16,193,492 15,581,664 18,141,046 Golf - - - - - - 133,370 36,669 40,000 38,500 Landfill - - - - - - 630,477 646,611 703,549 716,223 Parking District - - - - - - 134,689 120,121 114,068 100,679 Street Lighting - - - - - - 191,388 188,814 188,873 183,278 Wastewater 9,786,375 6,213,481 8,832,757 9,264,399 9,667,659 7,493,383 8,093,392 8,002,895 7,851,031 7,935,941 Water 4,935,691 5,813,699 6,006,675 5,579,127 5,446,778 5,785,553 6,486,959 6,502,379 6,909,764 7,228,258 Disposal site 127,228 129,321 132,287 217,999 132,106 362,018 - - Nonmajor activities 2,905,410 2,467,226 1,965,547 2,053,819 1,806,110 1,723,513 - - 14,441 79,891 Operating grants and contributions 10,660 40,717 57,271 - - 210,298 534,619 819,586 2,830,622 759,696 Capital grants and contributions - - - 25,175 10,384 2,640,396 2,592,224 12,524,559 24,876,967 556,033 Total business-type activities program revenues 33,922,646 29,804,619 31,988,447 32,383,990 32,139,602 34,186,371 36,365,904 46,945,698 60,619,818 37,339,740 Total primary government program revenues $ 42,277,767 $ 35,421,087 $ 37,306,291 $ 36,226,539 $ 36,881,953 $ 38,232,771 $ 42,448,345 $ 53,104,889 $ 67,285,677 $ 49,488,493 Net (Expense) Revenue Government activities $ (10,156,034) $ (13,700,168) $ (13,928,994) $ (13,519,345) $ (12,686,485) $ (5,490,812) $ (16,266,194) $ (18,597,186) $ (18,374,185) $ (12,720,782) Business-type activities 4,962,983 (30,031) 2,828,411 (4,006,943) 1,391,114 (1,883,626) 2,417,729 10,120,230 17,209,293 (3,209,631) Total primary government net expense $ (5,193,051) $ (13,730,199) $ (11,100,583) $ (17,526,288) $ (11,295,371) $ (7,374,438) $ (13,848,465) $ (8,476,956) $ (1,164,892) $ (15,930,413) Fiscal Year Attachment 1 Page 802 of 858 City of Ukiah, California Statistical Section Page | 166 City of Ukiah, California Changes in Net Position (continued) Last Ten Fiscal Years Fiscal Year Ended June 30, 2021 (Accrual basis of accounting) For Fiscal Year Ended June 30 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 General Revenues and Other Changes in Net Position Governmental activities: Property tax $ 3,182,981 $ 1,484,934 $ 1,251,189 $ 3,729,370 $ 3,531,272 1,470,323$ 2,890,291 2,984,192 3,139,960 3,408,846 Sales tax 6,518,506 6,901,284 7,134,537 5,976,938 6,740,622 9,805,225 10,745,095 11,974,379 13,313,206 15,535,021 Licenses, permits and franchises - - - - - - 1,653,146 1,781,141 1,742,671 1,815,271 Transient occupancy 775,547 828,000 959,570 1,061,823 1,229,814 1,302,336 1,406,417 1,496,473 1,365,477 1,367,852 Business license - - - - - - 380,797 303,604 411,997 560,527 Other taxes 917,930 929,173 916,007 2,281,810 1,939,984 2,450,254 249 462 888 1,136 Use of money and property - - - - - - 708,389 850,711 696,930 266,006 Vehicle in-lieu taxes 1,238,660 1,229,156 1,237,181 - - - - - Interest and investment earnings 175,318 91,117 93,521 501,217 323,373 404,235 - - Other revenue - - - - - - 306,746 181,676 246,319 17,052 Transfers 1,065,910 871,692 1,816,592 - (473,539) (639,819) (363,796) (410,782) (510,543) (444,963) Total governmental activities 13,874,852 12,335,356 13,408,597 13,551,158 13,291,526 14,792,554 17,727,334 19,161,856 20,406,905 22,526,748 Business-type activities: Property tax - - - - - - 16,949 17,121 16,815 16,714 Interest and investment earnings 441,974 200,899 356,372 321,824 672,730 468,003 - - Use of money and property - - - - - - 247,347 1,166,919 950,715 352,781 Other revenue - - - - - - - 11,513 22,223 Transfers (1,065,910) (584,482) (1,816,592) - 473,539 639,819 363,796 410,782 510,543 444,963 Total business-type activities (623,936) (383,583) (1,460,220) 321,824 1,146,269 1,107,822 628,092 1,606,335 1,478,073 836,681 Total primary government $ 13,250,916 $ 11,951,773 $ 11,948,377 $ 13,872,982 $ 14,437,795 $ 15,900,376 $ 18,355,426 $ 20,768,191 $ 21,884,978 $ 23,363,429 Extraordinary items Government activities $ (5,277,260) - - - - - - - - - Business-type activities - - - - - - - - - - Total Extraordinary Items $ (5,277,260) $ - $ - $ - $ - $ - $ - $ - $ - $ - Special items Government activities - - - - - - - 6,000,000 Business-type activities - - - - - (4,984,310) - - - - Total Special Items $ - $ - $ - $ - $ - $ (4,984,310) $ - $ 6,000,000 $ - $ - Accounting Change - Accumulative Effect Government activities - - - - - - - - - - Business-type activities - (1,179,845) - - - - - - - - Total Accounting Change - Accumulative Effect $ - $ (1,179,845) $ - $ - $ - $ - $ - $ - $ - $ - Change in Net Position Government activities $ (1,558,442) $ (1,364,812) $ (520,397) $ 31,813 $ 605,041 $ 9,301,742 $ 1,461,140 $ 6,564,670 $ 2,032,720 $ 9,805,966 Business-type activities 4,339,047 (1,593,459) 1,368,191 (3,685,119) 2,537,383 (5,760,114) 3,045,821 11,726,565 18,687,366 (2,372,950) Total primary government 2,780,605$ (2,958,271)$ 847,794$ (3,653,306)$ 3,142,424$ 3,541,628$ $ 4,506,961 $ 18,291,235 $ 20,720,086 $ 7,433,016 Source - Audited Financial Statements - Statement of Activities Fiscal Year Attachment 1 Page 803 of 858 City of Ukiah, California Statistical Section Page | 167 City of Ukiah, California Fund Balances, Governmental Funds Last Ten Fiscal Years Fiscal Year Ended June 30, 2021 (Modified accrual basis of accounting) For Fiscal Year Ended June 30 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 General Fund Nonspendable $ 559,134 $ 619,044 $ 619,044 $ 645,728 $ 911,343 $ 951,167 $ 1,793,247 $ 5,514,226 $ 6,673,912 $ 4,902,823 Restricted - - - - - - 4,000,000 - - - Committed - 183,956 203,105 - - - - - 194,655 Assigned 4,851,110 89,859 - - 185,443 4,371,069 - - - 186,134 Unassigned 1,454,665 4,381,047 4,233,953 4,878,803 4,116,215 - (1,623,326) 3,321,778 2,434,740 6,140,572 Total general fund $ 6,864,909 $ 5,273,906 $ 5,056,102 $ 5,524,531 $ 5,213,001 $ 5,322,236 $ 4,169,921 $ 8,836,004 $ 9,303,307 $ 11,229,529 All other governmental funds Nonspendable - - - - - - 137,576 - 137,576 137,576 Restricted 5,867,124 4,486,098 4,805,526 12,931,066 12,276,877 11,698,264 126,110,721 11,765,026 10,747,218 15,347,160 Committed 1,235,785 713,402 3,569,505 12,610,721 685,933 305,466 415,634 Assigned 3,460,240 5,832,173 2,514,649 4,395,621 3,358,684 2,952,598 1,516,753 1,430,426 1,326,655 4,806,366 Unassigned - (894,993) (736,226) (232,412) (442,572) (1,044,381) (1,919,041) (2,801,435) (1,955,567) (1,282,564) Reserved - - - - - - - - - - Unreserved - - - - - - - - - - Total other governmental funds 10,563,149 10,136,680 10,153,454 17,094,275 15,192,989 13,606,481 138,456,730 11,079,950 10,561,348 19,424,172 Fiscal Year Source: Audited Financial Statements - Balance Sheet-Governmental funds Attachment 1 Page 804 of 858 City of Ukiah, California Statistical Section Page | 168 City of Ukiah, California Changes in Fund Balances, Governmental Funds Last Ten Fiscal Years Fiscal Year Ended June 30, 2021 (Modified accrual basis of accounting) Function 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 REVENUES Property tax $ 3,182,981 $ 1,484,934 $ 1,251,189 $ 3,729,370 $ 3,531,272 1,470,323$ $ 2,890,291 $ 2,984,192 $ 3,139,960 $ 3,408,846 Sales tax 6,465,410 6,977,233 7,104,666 5,976,938 6,824,737 9,805,225 10,745,095 11,974,379 13,313,206 15,535,021 Franchise fees - - - - - - 1,653,146 1,781,141 1,742,671 1,815,271 Transient occupancy 775,547 828,000 925,191 1,061,823 1,229,814 1,302,336 1,406,417 1,496,473 1,365,477 1,362,134 Business license tax - - - - - - 380,797 303,604 411,997 509,803 Other taxes 917,930 929,173 950,386 2,047,734 1,917,323 391,473 249 462 888 1,136 Charges for service 1,146,590 1,580,632 1,013,534 1,032,957 755,074 1,487,426 1,780,430 2,036,077 1,340,123 2,505,138 Licenses and permits 434,492 272,070 292,688 186,012 341,642 1,792,595 299,101 211,113 259,533 276,752 Grants contributions and donations - - - - - - 274,995 938,308 3,164,054 1,693,511 Intergovernmental 4,756,038 2,964,207 3,270,042 3,048,401 2,911,624 1,945,803 2,524,311 1,153,488 2,686,013 6,036,254 Fines penalties and forfeitures 270,468 319,189 256,776 58,692 78,589 73,835 73,639 33,588 29,716 25,933 Facility rental - - - - - - 589,952 607,020 - - Interest, rent, and concessions 1,083,685 224,129 340,887 497,681 336,173 415,979 99,543 243,994 - 27,844 Use of money and property - - - - - - 36,656 - 1,072,805 922,810 Miscellaneous 375,103 243,654 493,158 232,651 411,052 187,999 654,186 436,361 388,629 158,956 Total revenues $ 19,408,244 $ 15,823,221 $ 15,898,517 $ 17,872,259 $ 18,337,300 $ 18,872,994 $ 23,408,808 $ 24,200,200 $ 28,915,072 $ 34,279,409 EXPENDITURES Current: General government 1,861,192 2,117,303 2,773,585 852,079 542,434 549,540 270,429 168,024 284,410 28,429,045 Public safety 8,996,781 9,831,860 9,297,118 10,229,049 11,096,768 11,592,123 11,703,851 12,111,558 12,569,718 13,486,427 Housing and community development 1,151,384 1,205,464 785,349 327,921 870,450 1,261,361 1,039,784 2,107,427 1,385,401 1,460,134 Public works 1,508,698 1,411,445 1,612,266 2,337,389 2,173,214 1,192,369 1,679,304 1,646,459 1,706,516 1,732,451 Parks, buildings, and grounds - - - - - - - 26 856 1,190,266 Parks and recreation 2,048,294 2,327,464 2,304,893 2,692,906 2,616,856 2,873,224 3,183,278 3,439,596 3,449,222 2,517,373 Economic development and redevelopment - - - - 273,570 299,397 403,808 290,261 Debt service: Interest 559,797 - - - - - - 142,679 139,753 139,070 Issuance expense - - - - - - 4,019 - 554,846 Principal 265,000 - - - - - 40,000 80,070 82,712 85,442 Capital lease principal - - - - - 16,243 49,967 101,727 104,282 127,291 Capital lease interest - - - - - - 14,055 26,232 23,678 26,949 Capital outlay 2,481,671 1,545,538 1,159,928 1,739,147 2,612,218 2,147,966 12,217,670 6,373,804 8,560,345 5,776,201 Total expenditures 18,872,817 18,439,074 17,933,139 18,178,491 19,911,940 19,632,826 30,475,927 26,496,999 28,710,701 55,815,756 Excess (deficiency) of revenues over expenditures 535,427 (2,615,853) (2,034,622) (306,232) (1,574,640) (759,832) (7,067,119) (2,296,799) 204,371 (21,536,347) OTHER FINANCING SOURCES (USES) Bond issue and Debt proceeds - - - - - - 5,125,731 - 284,685 32,770,354 Discount on bonds issued - - - - - - - - - - Transfers in 1,072,410 2,680,654 2,076,641 1,349,208 940,063 1,010,534 1,613,884 7,813,522 5,079,682 4,269,762 Transfers out (6,500) (2,082,273) (243,049) (1,378,578) (1,413,602)(1,727,975) (1,963,679) (8,238,303) (5,620,041) (4,714,724) Total other financing sources (uses) 1,065,910 598,381 1,833,592 (29,370) (473,539) (717,441) 4,775,936 (424,781) (255,674) 32,325,392 SPECIAL ITEM Reinstatement of Successor Agency loan - - - - - - - 6,000,000 Extraordinary items & Prior Period Adj. (12,331,505) - - 7,744,852 - - - - - - Total special items (12,331,505) - - 7,744,852 - - - 6,000,000 - - Net change in fund balances (10,730,168) (2,017,472) (201,030) 7,409,250 (2,048,179) (1,477,273) (2,291,183) 3,278,420 (51,303) 10,789,045 Debt service as a percentage of noncapital expenditures 5.30%0.00%0.00%0.00%0.00%0.09%0.60%1.67%1.61%1.90% Prior Period adjustment of is the result of moving long-term receivables and Land Held for Resale from deferred inflows-available revenues to restricted fund balance. Source: Audited Financial Statements - Statement of Revenues, Expenditures and Changes in Fund Balances Fiscal Year Attachment 1 Page 805 of 858 City of Ukiah, California Statistical Section Page | 169 Revenue Capacity City of Ukiah, California Tax Revenues by Source, Governmental Funds Last Ten Fiscal Years Fiscal Year Property Sales & Use Occupancy Franchise Other Total 2012 3,182,981 6,465,410 775,547 567,486 350,444 11,341,868 2013 1,484,934 6,977,233 828,000 569,892 359,281 10,219,340 2014 1,251,189 7,104,666 925,191 591,767 358,618 10,231,431 2015 3,729,370 5,976,938 1,061,823 1,643,559 404,175 12,815,871 2016 3,531,272 6,824,737 1,229,814 1,514,798 402,524 13,503,146 2017 2,703,312 8,489,734 1,302,336 1,551,794 473,976 14,521,155 2018 2,838,902 10,853,469 1,406,417 1,653,146 434,464 17,186,403 2019 2,984,192 11,974,379 1,496,473 1,781,141 304,066 18,540,251 2020 3,156,775 13,313,206 1,365,477 1,742,671 412,885 19,991,014 2021 3,425,560 15,535,021 1,367,852 1,815,271 561,663 22,705,367 Change 2020-2021 8.5% 16.7% 0.2% 4.2% 36.0% 13.6% Source: Audited Financial Statements - Statement of Revenues, Expenditures and Changes in Fund Balances 1. The change in FY2015 included moving the Motor Vehicle License fee from Sales & Use to Property. 2. The change in FY2015 included moving the Motor Vehicle License fee from Sales & Use to Property. 3. Includes the Electric Utility Franchise Fee which was previously included as a Transfer to General Fund. 4. Reduction over prior year due to the elimination of the Triple Flip portion of the Property Tax. 5. In 2018 Property Transfer Tax was included in 'Other' Taxes. In 2019 we recategorized it as Property Tax. Type of Tax Attachment 1 Page 806 of 858 City of Ukiah, California Statistical Section Page | 170 City of Ukiah, California Property Tax Rates Direct and Overlapping Governments Last Ten Fiscal Years Property Tax Schedules are not readily available from the County and are not presented here. Attachment 1 Page 807 of 858 City of Ukiah, California Statistical Section Page | 171 City of Ukiah, California Electric Utility Rates Last Ten Fiscal Years 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Residential, single phase Per meter per month, per KWH 0.12040$ 0.12040$ 0.12040$ 0.12040$ 0.12040$ 0.12040$ 0.12790$ 0.13180$ 0.13580$ 0.13580$ Minimum monthly billing 5.00$ 5.00$ 5.00$ 5.00$ 5.00$ 5.00$ 5.00$ 5.00$ 5.00$ 5.00$ General service: Base charge: Single phase 8.40$ 8.40$ 8.40$ 8.40$ 8.40$ 8.92$ 9.19$ 9.47$ 9.76$ 9.76$ Polyphase 9.80$ 9.80$ 9.80$ 9.80$ 9.80$ 9.99$ 10.29$ 10.60$ 10.92$ 10.92$ X-ray machine 21.00$ 21.00$ 21.00$ 21.00$ 21.00$ 22.28$ 22.95$ 23.64$ 24.35$ 24.35$ Minimum charge: second meter 8.40$ 8.40$ 8.40$ 8.40$ 8.40$ 8.92$ 9.19$ 9.47$ 9.76$ 9.76$ Energy use charge, per meter, per month, per KWH Summer 0.16568$ 0.16568$ 0.16568$ 0.16568$ 0.16568$ 0.17578$ 0.18106$ 0.18650$ 0.19210$ 0.19210$ Winter 0.12294$ 0.12294$ 0.12294$ 0.12294$ 0.12294$ 0.13043$ 0.13435$ 0.13839$ 0.14255$ 0.14255$ General Service with Demand: Base rate, per meter, per month 70.60$ 70.60$ 70.60$ 70.60$ 70.60$ 74.91$ 77.16$ 79.48$ 81.87$ 81.87$ Demand charge per KWH Summer 0.10966$ 0.10966$ 0.10966$ 0.10966$ 0.10966$ 0.11634$ 0.11984$ 0.12344$ 0.12715$ 0.12715$ Winter 0.08829$ 0.08829$ 0.08829$ 0.08829$ 0.08829$ 0.09367$ 0.09367$ 0.09939$ 0.10238$ 0.10238$ General large Industrial Service: Base charge, per meter, per month 70.60$ 70.60$ 70.60$ 70.60$ 70.60$ 74.91$ 77.16$ 79.48$ 81.87$ 81.87$ Demand charge per kwh of maximum demand: Winter 4.05$ 4.05$ 4.05$ 4.05$ 4.05$ 4.31$ 4.44$ 4.58$ 4.72$ 4.72$ Summer 6.45$ 6.45$ 6.45$ 6.45$ 6.45$ 6.85$ 7.06$ 7.28$ 7.50$ 7.50$ Fiscal Year Attachment 1 Page 808 of 858 City of Ukiah, California Statistical Section Page | 172 City of Ukiah, California Wastewater Utility Rates Last Ten Fiscal Years Wastewater System Rates- City (1)2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Residential Fixed Minimum Charge- Per Dwelling Unit 50.44$ 58.40$ 60.39$ 62.44$ 62.44$ 62.44$ 62.44$ 62.44$ 62.44$ 49.35$ Consumption Rate ($/hcf (2))1.98$ 2.29$ 2.37$ 2.45$ 2.45$ 2.45$ 2.45$ 2.45$ 2.45$ 3.57$ Commercial Commercial Low Strength ($/hcf)7.91$ 9.16$ 9.47$ 9.79$ 9.79$ 9.79$ 9.79$ 9.79$ 9.79$ 3.57$ Commercial Moderate Strength ($/hcf)8.46$ 9.79$ 10.12$ 10.47$ 10.47$ 10.47$ 10.47$ 10.47$ 10.47$ 3.89$ Commercial Medium Strength ($/hcf)14.96$ 17.32$ 17.91$ 18.52$ 18.52$ 18.52$ 18.52$ 18.52$ 18.52$ 7.77$ Commercial High Strength ($/hcf)19.26$ 22.31$ 23.07$ 23.85$ 23.85$ 23.85$ 23.85$ 23.85$ 23.85$ 10.32$ (1) The rates beginning in 2009-10 were approved pursuant to Resolution No. 2010-28 by City Council on July 21, 2010. (2) Each unit equals 748 gallons or 100 cubic feet (hcf). Wastewater System Rates- District (1) Residential Fixed Minimum Charge- Per Dwelling Unit 53.47$ 53.47$ 53.47$ 53.47$ 53.47$ 53.47$ 53.47$ 53.47$ 53.47$ N/A Consumption Rate ($/hcf (2))3.40$ 4.45$ 5.50$ 6.60$ 6.60$ 6.60$ 6.60$ 6.60$ 6.60$ N/A Commercial Commercial Low Strength ($/hcf)7.91$ 8.46$ 9.06$ 9.69$ 9.69$ 9.69$ 9.69$ 9.69$ 9.69$ N/A Commercial Moderate Strength ($/hcf)8.46$ 9.05$ 9.68$ 10.36$ 10.36$ 10.36$ 10.36$ 10.36$ 10.36$ N/A Commercial Medium Strength ($/hcf)14.96$ 16.00$ 17.12$ 18.32$ 18.32$ 18.32$ 18.32$ 18.32$ 18.32$ N/A Commercial High Strength ($/hcf)19.26$ 20.61$ 22.05$ 23.60$ 23.60$ 23.60$ 23.60$ 23.60$ 23.60$ N/A Special (3) (1) The rates beginning in 2010-2011 were approved pursuant to Ordinance No. 36 approved by the District on June 30, 2011. (2) Each unit equals 748 gallons or 100 cubic feet (hcf). (3) Determined on a case-by-case basis. Source: Utility Billing Department Rate Schedules Fiscal Year Attachment 1 Page 809 of 858 City of Ukiah, California Statistical Section Page | 173 City of Ukiah, California Water Utility Rates Last Ten Years Water System Rates (1)2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Consumption Rate ($/unit (2)) Single Family Residential 2.21$ 2.41$ 2.65$ 2.73$ 2.86$ 2.95$ 3.04$ 3.13$ 3.22$ 3.26$ All Other Customers 2.21$ 2.41$ 2.65$ 2.73$ 2.86$ 2.95$ 3.04$ 3.13$ 3.22$ 3.26$ Minimum base charge by Meter Size/ Class: 3/4" Meter 26.11$ 28.46$ 31.31$ 32.25$ 33.63$ 34.64$ 35.68$ 36.75$ 37.85$ 39.88$ 1" Meter 44.38$ 48.37$ 53.21$ 54.81$ 54.00$ 55.62$ 57.29$ 59.01$ 60.78$ 63.87$ 1 1/2" Meter 86.15$ 93.91$ 103.30$ 106.40$ 104.47$ 107.60$ 110.83$ 114.15$ 117.57$ 123.31$ 2" Meter 138.37$ 150.82$ 165.90$ 170.88$ 165.27$ 170.23$ 175.34$ 180.60$ 186.02$ 194.92$ 3" Meter 261.07$ 284.57$ 313.02$ 322.41$ 307.24$ 316.46$ 325.95$ 335.73$ 345.80$ 362.14$ 4" Meter 436.00$ 475.24$ 522.76$ 538.45$ 510.02$ 525.32$ 541.08$ 557.31$ 574.03$ 600.97$ 6" Meter 869.38$ 947.62$ 1,042.38$ 1,073.66$ 1,073.66$ 1,047.00$ 1,078.41$ 1,110.76$ 1,144.08$ 1,197.51$ Fire Service 2" & under 27.67$ 30.16$ 33.18$ 34.18$ 36.07$ 37.15$ 38.26$ 39.41$ 40.59$ 40.59$ Fire Service 3"52.21$ 56.91$ 62.60$ 64.48$ 64.84$ 66.79$ 68.79$ 70.85$ 72.98$ 72.98$ Fire Service 4"87.20$ 95.05$ 104.55$ 107.69$ 105.93$ 109.11$ 112.38$ 115.75$ 119.22$ 119.22$ Fire Service 6" 173.87$ 189.52$ 208.47$ 214.72$ 208.56$ 214.82$ 221.26$ 227.90$ 234.74$ 234.74$ Fire Service 8" 214.72$ 214.72$ 214.72$ 214.72$ 331.77$ 341.72$ 351.97$ 362.53$ 373.41$ 373.41$ (1) The rates beginning in 2009-10 were approved pursuant to Resolution No. 2010-27 by City Council on July 21, 2010. (2) Each unit equals 748 gallons. Source: Utility Billing Department Rate Schedules Fiscal Year Attachment 1 Page 810 of 858 City of Ukiah, California Statistical Section Page | 174 City of Ukiah, California Top Ten Electric Usage Customers Current Fiscal Year Ended June 30, 2021 Rate Payers Electric Usage City of Ukiah 904,055$ 5.62% Costco 309,638 1.92% County of Medocino 609,301 3.78% Maverick Enterprises 290,780 1.81% Safeway Stores 266,714 1.66% Save Mart Supermarkets (Lucky's)194,224 1.21% Save Mart Supermarkets (Food Maxx)196,829 1.22% Ukiah Unified School District 362,708 2.25% Ukiah Valley Medical Center 844,815 5.25% Wal-Mart 189,534 1.18% 4,168,598$ 26% Source: Utility Billing Module 2021 Attachment 1 Page 811 of 858 City of Ukiah, California Statistical Section Page | 175 Debt Capacity City of Ukiah, California Ratio of Outstanding Debt by Type Per Capita and Per Capita Income Data Last Ten Fiscal Years Countywide Estimated Lease Electric Direct Lease Total Percentage Fiscal Estimated Per Capita Ukiah Personal Redevelopment Capital Revenue Revenue Installment State Borrowing Revenue Landfill Primary Debt of Personal Year Population Income Income Bonds Leases Bonds Bonds Agreements Loans Loans Bonds Obligations Government Per Capita Income 2012 15,960 35,110 560,355,600$ 12,700,000$ -$ -$ 10,005,000$ 83,055,000$ 3,100,437$ -$ -$ 8,595,222$ 21,295,222$ 1,334$ 3.80% 2013 16,065 36,791 591,047,415$ 11,845,000$ -$ -$ 8,595,000$ 81,010,000$ 2,593,306$ -$ -$ 8,928,942$ 20,773,942$ 1,293$ 3.51% 2014 16,185 38,307 619,998,795$ 10,935,000$ -$ -$ 7,095,000$ 78,895,000$ 2,070,256$ -$ -$ 9,062,877$ 19,997,877$ 1,236$ 3.23% 2015 16,073 39,545 635,606,785$ 9,970,000$ -$ -$ 5,485,000$ 76,695,000$ 1,530,670$ -$ -$ 14,700,370$ 24,670,370$ 1,535$ 3.88% 2016 16,186 43,845 709,675,170$ 8,950,000$ -$ -$ 3,775,000$ 74,075,000$ -$ -$ -$ 14,700,370$ 23,650,370$ 1,461$ 3.33% 2017 16,314 45,436 741,242,904$ 7,865,000$ -$ -$ 1,950,000$ 71,590,000$ -$ 199,883$ -$ 14,700,370$ 22,565,370$ 1,383$ 3.04% 2018 16,226 47,611 772,536,086$ 7,350,000$ 5,301,504$ -$ -$ 69,010,000$ -$ 190,121$ -$ 14,700,370$ 27,351,874$ 1,686$ 3.54% 2019 16,296 50,150 817,244,400$ 6,800,000$ 5,065,067$ -$ -$ 66,330,000$ -$ 15,384,763$ -$ 16,236,314$ 28,101,381$ 1,724$ 3.44% 2020 16,061 52,976 850,847,536$ 5,495,771$ 5,051,040$ -$ -$ 34,170,000$ -$ 16,948,410$ -$ 19,063,628$ 29,610,439$ 1,844$ 3.48% 2021 15,526 54,795 850,747,170$ 4,863,469$ 5,109,125$ 34,806,592$ -$ 32,240,000$ -$ 18,398,373$ 17,448,408$ 19,297,593$ 64,076,779$ 4,127$ 7.53% Source: Estimated Population-from the State of California Department of Finance. Countywide Per Capita Income - Bureau of Economic Analysis CA1 Personal Income Summary: Personal Income, Population, Per Capita Personal Income Redevelopment Bonds, Capital Leases, Electric Revenue Bonds, Installment Agreements, State Loans, Direct Borrowing Loans & Landfill Obligations - Notes to Financial Statements-Long Term Debt Notes:Information on Outstanding Debt updated from prior presentations to include Capital Leases and Direct Borrowing Loans Total Primary Government Debt reflects Redevelopment Bonds, Capital Leases and Landfill Obligations Business Type ActivitiesGovernmental Type Activities Attachment 1 Page 812 of 858 City of Ukiah, California Statistical Section Page | 176 City of Ukiah, California Ratio of General Bonded Outstanding Debt Last Ten Fiscal Years Percentage of Actual Countywide Actual Lease Total Taxable Fiscal Estimated Per Capita Taxable Value Redevelopment Capital Revenue Primary Debt Value Year Population Income of Property Bonds Leases Bonds Government Per Capita of Property 2012 15,960 35,110$ 1,169,395,369$ 12,700,000$ -$ -$ 12,700,000$ 796$ 1.09% 2013 16,065 36,791$ 1,171,599,083$ 11,845,000$ -$ -$ 11,845,000$ 737$ 1.01% 2014 16,185 38,307$ 1,195,466,105$ 10,935,000$ -$ -$ 10,935,000$ 676$ 0.91% 2015 16,073 39,545$ 1,224,746,468$ 9,970,000$ -$ -$ 9,970,000$ 620$ 0.81% 2016 16,186 43,845$ 1,267,903,229$ 8,950,000$ -$ -$ 8,950,000$ 553$ 0.71% 2017 16,314 45,436$ 1,304,711,495$ 7,865,000$ -$ -$ 7,865,000$ 482$ 0.60% 2018 16,226 47,611$ 1,364,333,801$ 7,350,000$ 5,301,504$ -$ 12,651,504$ 780$ 0.93% 2019 16,296 50,150$ 1,424,497,607$ 6,800,000$ 5,065,067$ -$ 11,865,067$ 728$ 0.83% 2020 16,061 52,976$ 1,491,766,585$ 5,495,771$ 5,051,040$ -$ 10,546,811$ 657$ 0.71% 2021 15,526 54,795$ 1,611,033,296$ 4,863,469$ 5,109,125$ 34,806,592$ 44,779,186$ 2,884$ 2.78% Source: Estimated Population-from the State of California Department of Finance Countywide Per Capita Income- Bureau of Economic Analysis CA1 Personal Income Summary: Personal Income, Population, Per Capita Personal Income Redevelopment Bonds & Capital Leases - Notes to Financial Statements-Long Term Debt County of Mendocino Assessed Valuations by District NOTE: AV Information show Secured Only General Debt Outstanding Attachment 1 Page 813 of 858 City of Ukiah, California Statistical Section Page | 177 City of Ukiah, California Computation of Direct and Overlapping Debt June 30, 2021 Estimated Estimated Share of Percentage Direct and Debt Applicable Overlapping Jurisdiction Outstanding to City (1)Debt 2020-21 Assessed Valuation (City of Ukiah):1,611,033,296$ 2020-21 Assessed Valuation (Successor Agency to the Ukiah RDA):992,789,219 2020-21 Incremental Assessed Valuation (Successor Agency to the Ukiah RDA):736,582,222 OVERLAPPING TAX AND ASSESSMENT DEBT:% Applicable(1)Debt 6/30/2021 City of Ukiah 100.00%-$ Ukiah Unified School District 34.01%21,711,065.46 Mendocino-Lake Community College District 13.61%7,694,652.23 TOTAL OVERLAPPING TAX AND ASSESSMENT DEBT 29,405,717.69$ OVERLAPPING GENERAL FUND DEBT: City of Ukiah - Capital Lease Obligations 100.00%5,109,125.00$ City of Ukiah - Lease Revenue Bonds, Series 2020A 100.00%2,380,000.00 City of Ukiah - Taxable Lease Revenue Bonds, Series 2020B 100.00%32,426,592.00 Mendocino County General Fund Obligations 12.84%1,875,424.56 Mendocino County Pension Obligation Bonds 12.84%5,055,741.74 TOTAL OVERLAPPING GENERAL FUND DEBT 46,846,883.30$ OVERLAPPING TAX INCREMENT DEBT(SUCCESSOR AGENCY)100.00%4,863,469.00$ Total Direct Debt 39,915,717.00$ Total Overlapping Debt 41,200,352.99 Total Combined Debt 81,116,069.99$ Ratios to 2020-21 Assessed Valuation: Total Direct Debt 2.48% Total Overlapping Tax and Assessment Debt 1.83% Total Overlapping Debt 2.56% Total Combined Debt 5.04% Ratios to 2020-21 Redevelopment Successor Agency Incremental Assessed Valuation: Total Overlapping Tax Increment Debt 0.66% (1) The percentage of overlapping debt applicable to the City is estimated using taxable assessed property value. Applicable percentages were estimated by determining the portion of the overlapping entities' assessed value that is within the boundaries of the City, divided by the entities' total taxable assessed value. (2) Excludes tax and revenue anticipation notes, enterprise revenue and mortgage revenue obligations. The above Pledged-Revenue Coverage data is provided for interested parties. The specific Pledged-Revenue Coverage requirements for outstanding enterprise debt are detailed in the covenants for each outstanding enterprise debt. Investors in the City’s enterprise debt obligations are encouraged to review the annual Continuing Disclosure Reports required under SEC Rule 15c2-12, as posted to the Municipal Securities Rulemaking Board Electronic Municipal Market Access website, to obtain the annual Continuing Disclosure report for Pledged-Revenue Coverage Ratio information in alignment with specific debt covenants. Attachment 1 Page 814 of 858 City of Ukiah, California Statistical Section Page | 178 City of Ukiah, California Legal Debt Margin Information Last Ten Fiscal Years Debt Subject Ratio Applied Legal Total Debt to Limit Fiscal Assessed as % of Debt Limit Subject to as % of Year Valuation Assessed Value Margin Limit Debt Limit 2012 1,169,395,369$ 15.00% 175,409,305 - 0.00% 2013 1,171,599,083$ 15.00% 175,739,862 - 0.00% 2014 1,195,466,105$ 15.00% 179,319,916 - 0.00% 2015 1,224,746,468$ 15.00% 183,711,970 - 0.00% 2016 1,267,903,229$ 15.00% 190,185,484 - 0.00% 2017 1,304,711,495$ 15.00% 195,706,724 - 0.00% 2018 1,364,333,801$ 15.00% 204,650,070 - 0.00% 2019 1,424,497,607$ 15.00% 213,674,641 - 0.00% 2020 1,491,766,585$ 15.00% 223,764,988 - 0.00% 2021 1,611,033,296$ 15.00% 241,654,994 - 0.00% Legal Debt Limit Margin Calculation for 2020-2021 Assessed value 1,611,033,296$ Debt limit is 15% of assessed value 241,654,994$ Less: Debt applicable to limitation -$ Total bonded debt -$ Legal debt margin 241,654,994$ In accordance with state law the City may not incur general obligation bonded indebtedness in excess of 15% of total assessed valuation, with such debt being payable from the proceeds of taxes levied upon taxable properties Source: County of Mendocino Assessed Valuations by District Attachment 1 Page 815 of 858 City of Ukiah, California Statistical Section Page | 179 City of Ukiah, California Pledged Net Revenue Debt Coverage Last Ten Fiscal Years Pledged Pledged Fiscal System System Year Net Revenues (1)Principal Interest Coverage Net Revenues Principal Interest Coverage 2011 3,577,709 1,956,772 3,369,632 0.67 - - - - 2012 6,903,915 2,027,475 3,267,419 1.30 - - - - 2013 6,685,684 2,098,499 3,189,995 1.26 - - - - 2014 8,978,102 2,169,854 3,109,840 1.70 - - - - 2015 7,260,306 2,263,252 3,038,640 1.37 - - - - 2016 5,855,558 2,343,252 2,940,898 1.11 2,563,208 - 340,258 7.53 2017 (4)5,134,107 2,010,000 2,851,300 1.06 3,195,187 475,000 448,769 3.46 2018 (4)5,789,893 2,090,000 2,770,900 1.19 3,009,652 490,000 436,669 3.25 2019 (4)5,186,991 2,180,000 2,687,300 1.07 4,304,968 500,000 419,319 4.68 2020 4,816,620 1,185,600 1,915,615 1.55 2,351,327 530,000 398,719 2.53 2021 7,302,095 1,390,000 608,722 3.65 7,162,979 540,000 377,319 7.81 Details regarding the City's outstanding debt can be found in the notes to the financial statements. 1. Includes Ukiah Valley Sanitation District payments for Waste Water services and portion of Debt Service, including a portion of such payments identified as capital contributions and maintenance and operations expense 2. 2020 Wastewater Refnunding Bonds. Paid off prior wastewater system debts. 3. 2016 Water System Installment Agreement refunding. Paid off prior water system debts. 4. Pledged System Net Revenues for the Fiscal Years Ended June 30, 2017 through June 30, 2019 have been restated to align with Coverage computations presented in debt documentation. Debt Service 2016 Water System Installment (3) Debt Service Wastewater System Debts (2) Attachment 1 Page 816 of 858 City of Ukiah, California Statistical Section Page | 180 Demographic and Economic information City of Ukiah, California Demographic and Economic Statistics Last Ten Fiscal Years Countywide Estimated Fiscal Estimated Per Capita City Ukiah Assessed Unemployment Year Population Income Income Valuation Rate 2011 16,109 33,353$ 537,283,477$ 1,180,790,444$ 14.30% 2012 15,960 35,110$ 560,355,600$ 1,169,395,369$ 13.40% 2013 16,065 36,791$ 591,047,415$ 1,171,599,083$ 11.30% 2014 16,185 38,307$ 619,998,795$ 1,195,466,105$ 9.60% 2015 16,073 39,545$ 635,606,785$ 1,224,746,468$ 8.00% 2016 16,186 43,845$ 709,675,170$ 1,267,903,229$ 6.90% 2017 16,314 45,436$ 741,242,904$ 1,304,711,495$ 6.30% 2018 16,226 47,611$ 772,536,086$ 1,364,333,801$ 5.30% 2019 16,296 50,150$ 817,244,400$ 1,424,497,607$ 5.20% 2020 16,061 52,976$ 850,847,536$ 1,491,766,585$ 8.00% 2021 15,526 54,795$ 850,747,170$ 1,542,790,339$ 10.20% Source: Estimated Population-State of California Department of Finance Countywide Per Capita Income- Bureau of Economic Analysis CA1 Personal Income Summary: Personal Income, Populatio Per Capita Personal Income Assessed Valuations-County of Mendocino-Assessed Valuations by District Unemployment Rate-State of California Employment Development Department Labor Market Division Labor Force Data for Cities and Census Designated Places Attachment 1 Page 817 of 858 City of Ukiah, California Statistical Section Page | 181 City of Ukiah, California Principal Employers 2021 Employers Industry Employee Size Class Adventist Health Ukiah Valley Hospitals 500-999 City of Ukiah City Services 100-249 Costco Wholesale Wholesale Clubs 100-249 County of Mendocino Government Offices-County 1000-1250 Dharma Realm Buddhist Assn Associations 100-249 Mendocino Community Health Clincs 250-499 Mendocino County Office of Education Boards of Education 100-249 Pacific Coast Farm Credit Loans-Agricultural 100-249 Sawmill Sawmills & Planing Mills-General (mfrs)100-249 Ukiah Valley Medical Center Hospitals 500-999 Walmart Department Stores 100-249 Source: https://www.labormarketinfo.edd.ca.gov/majorer/countymajorer.asp?CountyCode=000045 Attachment 1 Page 818 of 858 City of Ukiah, California Statistical Section Page | 182 Operating Information City of Ukiah, California Full-time and Part-time City Employees by Function Last Ten Calendar Years Function 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 General Government(1)20.7 23.2 23.1 24.0 21.5 27.5 32.9 36.5 37.6 40.2 Police(2)39.5 38.5 43.0 48.0 49.0 49.0 52.7 53.0 46.8 49.8 Fire 18.5 15.5 11.0 11.0 11.0 11.0 13.2 20.5 19.8 29.8 Planning & Building 4.3 4.0 5.5 6.0 6.0 6.0 5.4 5.8 5.2 7.7 Public Works, Water, Sewer 41.6 38.9 38.3 39.0 41.5 42.5 44.2 43.5 41.3 43.1 & Wastewater Treatment Electric 17.4 18.2 16.2 17.0 17.0 18.0 21.6 21.3 18.8 22.0 Airport 2.0 2.0 2.0 2.0 2.0 2.0 4.2 4.2 4.3 4.2 Parks & Recreation 17.9 18.7 17.9 17.0 20.0 19.0 33.5 35.5 31.4 34.3 Total:(3)162.0 159.0 157.0 164.0 168.0 175.0 207.6 220.3 205.1 231.1 (1)includes City Administration,Finance, Human Resources, Administrative Support and Information Services Functions (2)Includes dispatch that supports both police and fire. (3)The City's method of counting FTE changed for FY2018 - FY2020. Source:City of Ukiah Budget-Authorized Full-Time Personnel (FTE) FY21/22 Full-Time Equivalent Personnel as of June 30 Attachment 1 Page 819 of 858 Independent Auditor’s Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards City Council City of Ukiah Ukiah, California We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the governmental activities, business-type activities, each major fund and the aggregate remaining fund information of the City of Ukiah (City), as of and for the year ended June 30, 2021, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements, and have issued our report thereon dated December 30, 2021. Internal Control Over Financial Reporting In planning and performing our audit of the financial statements, we considered the City’s internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, we do not express an opinion on the effectiveness of the City’s internal control. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity’s financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. Our consideration of internal control was for the limited purpose described in the preceding paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies and therefore, material weaknesses or significant deficiencies may exist that were not identified. Given these limitations, during our audit we did not identify any deficiencies Attachment 1 Page 820 of 858     in internal control that we consider to be material weaknesses. We did identify certain deficiencies in internal control, described in the accompanying schedule of findings and responses as item 2021-001 that we consider to be a significant deficiency. Compliance and Other Matters As part of obtaining reasonable assurance about whether the City’s financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. City of Ukiah’s Responses to Findings The City’s responses to the findings identified in our audit are described in the accompanying schedule of findings and responses. The City’s responses were not subjected to the auditing procedures applied in the audit of the financial statements and, accordingly, we express no opinion on them. Purpose of this Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the organization’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose. December 30, 2021 Attachment 1 Page 821 of 858 CITY OF UKIAH SCHEDULE OF FINDINGS AND RESPONSES Year Ended June 30, 2021   2021-001 Building Permits Condition: The City’s building permit system is a module of Munis, the general ledger accounting system used. Payments for building permits are collected by the cashiers by crediting the permit application in Munis. However, the permit technicians can issue permits with a balance due, with no independent reconciliation performed between the permits issued and the revenues collected and posted to the general ledger. Criteria: In a strong internal control environment, permits issued should be reconciled with the revenues collected and recorded in the general ledger on a periodic basis to ensure all permits issued have a corresponding cash receipt. Cause of Condition: The City does not reconcile the building permits issued to the revenues collected and recorded in the general ledger. Potential Effect of Condition: Building permits could be issued without a corresponding cash receipt being recorded in the City’s general ledger and deposits in the City’s bank account. Recommendation: We recommend the City implement procedures to generate reports from the building permit module, and periodically (daily, weekly, monthly) have someone independent of the permit issuance and collection functions review and reconcile the amounts from these reports to the revenues posted in the City’s general ledger. Management’s Response: The Finance Department plans to continue working with the Community Development Department to complete the refinement to this internal control and implement the recommendation as appropriate. Attachment 1 Page 822 of 858 INDEPENDENT ACCOUNTANT’S REPORT ON AGREED-UPON PROCEDURES APPLIED TO APPROPRIATIONS LIMIT WORKSHEETS City Council City of Ukiah Ukiah, California We have performed procedures enumerated below to be the accompanying Appropriations Limit worksheet of the City of Ukiah, for the year ended June 30, 2021. These procedures, which were agreed to by the City of Ukiah and the League of California Cities (as presented in the publication entitled Agreed- upon Procedures Applied to the Appropriations Limitation Prescribed by Article XIIIB of the California Constitution), were performed solely to assist the City in meeting the requirements of Section 1.5 of Article XIIIB of the California Constitution. The City’s management is responsible for the Appropriations Limit worksheet. This agreed-upon procedures engagement was conducted in accordance with attestation standards established by the American Institute of Certified Public Accountants. The sufficiency of the procedures is solely the responsibility of those parties specified in this report. Consequently, we make no representation regarding the sufficiency of the procedures described below either for the purpose for which this report has been requested or for any other purpose. The procedures performed and our findings were as follows: 1. We obtained the completed worksheets and compared the limit and annual adjustment factors included in those worksheets to the limit and annual adjustment factors that were adopted by resolution of the City Council. We also compared the population and inflation options included in the aforementioned documents to those that were selected by a recorded vote of the City Council. Finding: The population and inflation options used by the City as the annual adjustment factors were the annual adjustment factors applicable for the limit calculation for the fiscal year ended June 30, 2020. The change in per capital personal income factor should have been 3.73% instead of 3.85%. The population change factor should have been 0.20% instead of -0.10%. As a result, the City adopted an appropriations limit $84,656 less than allowable by using the amounts indicated above. 2. For the accompanying Appropriations Limit worksheet, we added last year’s limit to total adjustments and agreed the resulting amount to this year’s limit. Finding: No exceptions were noted as a result of our procedures. 3. We agreed the current year information presented in the accompanying Appropriations Limit worksheet to the other documents referenced in #1 above. Attachment 1 Page 823 of 858 2 Finding: No exceptions were noted as a result of our procedures except the City used a population growth factor and per capita personal income factor of -0.10% and 3.85% instead of 0.20% and 3.73%. 4. We agreed the prior year appropriations limit presented in the accompanying Appropriations Limit worksheet to the prior year appropriations limit adopted by the City Council during the prior year. Finding: No exceptions were noted as a result of our procedures. We were not engaged to, and did not, perform an examination, the objective of which would be the expression of an opinion on the accompanying Appropriations Limit worksheet. Accordingly, we do not express such an opinion. Had we performed additional procedures, other matters might have come to our attention that would have been reported to you. No procedures have been performed with respect to the determination of the appropriations limit for the base year, as defined by the League publication entitled Article XIIIB of the California Constitution. This report is intended solely for the use of the City Council and management of the City of Ukiah and is not intended to be and should not be used by anyone other than these specified parties. However, this report is a matter of public record and its distribution is not limited. December 30, 2021 Attachment 1 Page 824 of 858 3 CITY OF UKIAH APPROPRIATIONS LIMIT COMPUTATION 2020 – 2021 2020 - 2021 Change in Per Capita Personal Income 3.85% Population Change County Population Growth -0.10% A. Change in Per Capita Personal Income Converted to a Ratio 1.0385 B. Population Growth Converted to a Ratio 0.999 Calculation of Growth Factor (A x B) 1.03746 2019 - 2020 Appropriations Limit 44,251,056$ 2020 - 2021 Appropriations Limit (44,251,056 x 1.03746) 45,908,767$ Attachment 1 Page 825 of 858 END OF DOCUMENT Attachment 1 Page 826 of 858 1 Attachment 2 Page 827 of 858 1.Annual Comprehensive Financial Report (ACFR) 1.(Formerly CAFR) 2.What is it? 3.How to read 4.Key takeaways 2.Highlights for the year ended June 30, 2021 3.Audit Reports 2 Attachment 2 Page 828 of 858 1.Daniel Buffalo, MPA, CPA, CGMA | Finance Director 2.Ginny Feth -Michel, CPA | Assistant Finance Director 3.Mary Horger | Financial Services Manager –Procurement, Capital, and Special Projects 4.Olga Keough, CPA | Controller 5.Sarah Brown | Financial Services Manager -Disbursements 3 Attachment 2 Page 829 of 858 •ACFR Annual Comprehensive Financial Report •GAAP Generally Accepted Accounting Principles •GASB Governmental Accounting Standards Board •Measurement Focus Period of time considered. •Economic resources •Current financial resources •Accounting basis The manner in which transactions and balances are recorded and reported. •Cash •Accrual (business-like) •Modified accrual (fund accounting) 4 Attachment 2 Page 830 of 858 5 Attachment 2 Page 831 of 858 How is governmental accounting different than private-sector accounting? Private Sector •To account for the bottom line, the benefit of the owner(s) Governmental •No owner •Myriad of interests, considerations, and stakeholders •Many transactions are different than in the private sector e.g. taxes 6 Attachment 2 Page 832 of 858 A series of self-balancing accounts used to track the flow of resources for a specific or general purpose. In other words, think of a fund as a subsidiary of a larger organization. 7 Attachment 2 Page 833 of 858 Balance Sheet: Assets Deferred outflows of resources Liabilities Deferred inflows of resources Fund balance/net position Changes to fund balance/net position: Revenues Expenditures (expenses) Other financing sources (uses) Transfers Other items not considered revenues or expenditures 8 Attachment 2 Page 834 of 858 o Fund balance: o Assets + Deferred outflows –liabilities -deferred inflows o Concerned only with current financial resources measurement focus o Use only for governmental funds, i.e., general fund, special revenue funds, etc. o Components: o Nonspendable (resources unavailable in the near future) o Restricted (limited use by an outside party) o Committed (limited use by the highest level of authority, e.g. ordinance) o Assigned (limited use by some level of authority, i.e. council or management) o Ex: reserves o Unassigned (no limitation and specific use, really only applicable to the general fund) o Net position: o Same concept as fund balance, however... o Is used in context of economic resources measurement focus (full accrual accounting) o Used for City-wide reporting, proprietary funds (e.g., enterprise and internal service funds), and some fiduciary funds (e.g. RDA Successor Agency) o We use “working capital” to approximate fund balance o Working capital = current assets –current liabilities 9 Attachment 2 Page 835 of 858 Budget Where you’re going Audited Financial reports Where you’ve been And a qualified CPA is attesting to that 10 Attachment 2 Page 836 of 858 For a variety of reasons: A legal document A planning tool A control mechanism A policy document •Expression of intent •Communication A spending plan An allocation of resources A performance standard From an accounting perspective: to account for “non-exchange” transactions. 11 Attachment 2 Page 837 of 858 Annual Comprehensive Financial Report 12 Attachment 2 Page 838 of 858 •Management’s communication to Council and community on the financial activities and condition of the City for the period •One-year period ended June 30, 2021 •Audited financial statements, schedules, and other financial information •Audited by independent Certified Public Accountant, licensed by the State of California •Knowledgeable in governmental accounting and reporting •Written to specific standards (GAAP), promulgated by GASB 13 Attachment 2 Page 839 of 858 •Often referred to as the “Audit” or “Audit Report” •This is a misnomer. •The auditor’s reports are found within the ACFR and are an integral part of it •Pg 1 (30 of pdf), “Independent Auditor’s Report” •Pg 183 (212 of pdf), Report on internal control •Pg 186 (215 of pdf), Appropriations Limit (Gann Limit) confirmation •The document is the responsibility of management and then audited •Audited financials required by City policy and state law. 14 Attachment 2 Page 840 of 858 •Table of contents and bookmarks •Three main sections: 1.Introductory 2.Financial 3.Statistical 4.Other auditor reports i.Internal control, compliance, and other matters ii.Appropriations (Gann) limit 15 Attachment 2 Page 841 of 858 •Introductory 1.Letter of transmittal 2.Org chart 3.City officials 4.GFOA Excellence in Financial Report Award (2020) 16 Attachment 2 Page 842 of 858 •Financial 1.Auditor’s report (audit opinion) 2.MD&A (Management’s Discussion and Analysis) 3.Basic financials: I.City-wide (full accrual, economic resources measurement focus): Fund financials: i.Governmental funds (modified accrual, current financial resources measurement focus): ii.Proprietary funds (full accrual, economic resources measurement focus): i.Enterprise funds ii.Internal service funds iii.Fiduciary funds E.g., UVSD funds, Redevelopment Successor Agency Funds II.Notes (pg 35 of document, 64 of pdf) III.RSI (Required Supplemental Information) I.Budget-to-actual for general fund IV.Optional Supplementary Information I.Budget-to-actual information for other governmental funds 17 Attachment 2 Page 843 of 858 •Statistical 1.Historical information 1.Fund balance 2.Net position 2.Debt information 3.Economic data and demographic information 4.Operating indicators Helps provide context to the reader for the whole document 18 Attachment 2 Page 844 of 858 •It’s comprehensive...really comprehensive •Meant for consumption by all but really tailored to those who know how to read it •City received an “unmodified” opinion •i.e.statements are presented fairly (in all material respects) without exception •A “clean” audit •Findings related to internal control, pg 183 (212 of pdf) 19 Attachment 2 Page 845 of 858 20 Attachment 2 Page 846 of 858 Reported Funds (66) Governmental (39) General, special revenue, capital, debt service, permanent Proprietary (20) Enterprise (10) –Water, sewer, electric, parking, street lighting, airport, conference center, golf, ambulance services Internal service (10) –City Administrative Services, Garage, Dispatch, Purchasing, Billing (UB and general), workers’ comp, liability (risk management), building maintenance, IT Fiduciary (7) Custodial (6) –UVSD, UVFD, Special Deposit, Garbage Billing, Russian River Watershed, general services (clearing fund for utility billing) Private Purpose trust (1) –Redevelopment Successor Agency 21 Attachment 2 Page 847 of 858 Cash $55.2 million $ 46.6 million for City use $35.9 mil held in City treasury $2.9 mil held with fiscal agents $7.8 mil held with NCPA $8.6 million in fiduciary Net position: $177.0 million in capital, net of related debt $15.7 million restricted -$25.8 million unrestricted 22 Attachment 2 Page 848 of 858 GASB 68: “Accounting and Financial Reporting for Pensions” Net pension liability $57.1 million $37.5 million (misc) $19.6 million (safety) By activity: Governmental: $18.6 million (misc) $19.6 million (safety) Water: $4.1 million (misc) Sewer: $4.8 million (misc) Electric: $7.4 million (misc) Other enterprise: $2.6 million 23 Attachment 2 Page 849 of 858 Pension UAL Financing, 2020 Payment to PERS:$45.8 mil Earnings on payment/reduction in UAL: $12 mil Remaining UAL left with PERS before earnings/reduction: $12 mil New UAL with PERS: $0 (possibly super funded) Note: this is still an estimate. Additional plan detail from PERS forthcoming. 24 Attachment 2 Page 850 of 858 25 General government 0.85% Public safety 20.67% Housing and community development 2.21% Public works 5.18% Parks, buildings, and grounds 2.36% Recreation and culture 4.00% Economic development and redevelopment 0.44% Interest on long-term debt 1.92% Airport 2.81% Ambulance Services 0.08% Conference Center -0.51% Electric 29.80% Golf 0.22% Landfill 1.47% Parking District 0.21% Street Lighting 0.28% Wastewater 14.62% Water 12.38% Expense by Activity Attachment 2 Page 851 of 858 26 Charges for services 54.23% Operating grants and contributions 11.87% Capital grants and contributions 1.82% Taxes 28.61% Franchise fees 2.49% Use of money and property 0.85%Other revenue 0.12% Revenue by Source Attachment 2 Page 852 of 858 27 Attachment 2 Page 853 of 858 Page 1 of 2 Agenda Item No: 13.d. MEETING DATE/TIME: 1/19/2022 ITEM NO: 2019-62 AGENDA SUMMARY REPORT SUBJECT: Receive Updates; Discussion and Appointments Regarding 2022 Council Assignments; and Consideration of Disbandment and Modification to City Council Committees and Ad Hocs. DEPARTMENT: City Clerk PREPARED BY: Kristine Lawler, City Clerk PRESENTER: Mayor Brown and City Manager Sangiacomo ATTACHMENTS: 1. Draft 2022 City Council Special Assignments Summary: City Council members will provide reports and updates on their committee and ad hoc assignments. Each year following the rotation of the mayor position, the incoming mayor leads a review of assignments. The Council will also consider modifications, additions and elimination of committee and ad hocs. Background: City of Ukiah Councilmembers take an active role in various commissions and committees that are part of city, county, regional, and statewide governance and interests. Each year, the incoming mayor leads a discussion and makes annual appointments for members assigned to the various groups. The assignments are broken out into four categories as follows: County / Regional (On-going; Principal Representative + Alternate) - The City takes part in decision making by these groups and is represented by an appointed member, who has a designated alternate. These assignments typically require attendance at a monthly (or other interval) meeting. County / Regional (On-going; One + Staff Alternate) - The City takes part in discussions, may be a member of the Board, or have ex officio status (observer). City staff is active with these groups and serves as an alternate or single representative for the City. These groups typically have monthly meetings. Local / County / Regional Liaisons (On-Going; One or Two Council and/or Staff) - This group varies; some meetings are regularly scheduled and others are arranged occasionally as needed. This group includes appointments that may, from time to time, include a Board seat for a City Council member. Ad Hoc Committees (Limited Time; Two Council + Principal Staff Support) - The City Council may establish and appoint ad hoc committees at any time throughout the year. Ad Hoc committees are for specific issues and do not carry over year to year unless that specific issue remains under discussion. ***Note: Although the Council Ad Hoc Committees are a part of the Council Special Assignment List, they are officially appointed by the Council at various meetings, and are subject to Council approval for any changes. Discussion: Attachment #1 is a draft of the 2022 Council Special Assignment List and Ad Hoc Committees inclusive of recommended changes (delineated by line/strikethrough edits) offered by the Mayor in consultation with the City Manager. The Mayor will lead a discussion with Council regarding Council assignments and make any appointments or reassignments per that discussion. In addition, the Council will Page 854 of 858 Page 2 of 2 consider modifications, additions and disbandment of ad hocs. Staff recommends directing the City Clerk to attach the finalized copy of the 2022 City Council Special Assignments List to the January 19, 2022, Minutes for recordation. Recommended Action: 1) Receive report(s); 2) Discuss the Mayor's recommended assignments, making any possible appointments or re-assignments; 3) Consider the possible continuation, disbandment, and addition of City Council Ad Hoc and/or committees; and 4) Direct the City Clerk to finalize and attach the 2022 Council Assignments and Ad Hoc Committee List to the January 19, 2022, Minutes. BUDGET AMENDMENT REQUIRED: No CURRENT BUDGET AMOUNT: N/A PROPOSED BUDGET AMOUNT: N/A FINANCING SOURCE: N/A PREVIOUS CONTRACT/PURCHASE ORDER NO.: N/A COORDINATED WITH: Mayor Brown and City Manager Sangiacomo Page 855 of 858  2022 CITY COUNCIL SPECIAL ASSIGNMENTS COUNTY/REGIONAL OnGoing One + Alternate MTG DATE/TIME MEETING LOCATION MAILING ADDRESS/CONTACT COMMITTEE FUNCTION ASSIGNED TO PRINCIPAL STAFF SUPPORT Disaster Council Shall meet a minimum of once a year at a time and place designated upon call of the chair Place designated upon call of the chair or, if she/he is unavailable or unable to call such meeting, the first vice chair and then the City Manager or her/his designee. Office of Emergency Management 300 Seminary Ave. Ukiah, CA 95482 467-5765 - Tami Bartolomei Develop any necessary emergency and mutual aid plans, agreements, ordinances, resolutions, rules, and regulations. Orozco Duenas- Alternate Tami Bartolomei, Office of Emergency Management Coordinator; 467-5765 tbartolomei@cityofukiah.com Greater Ukiah Business & Tourism Alliance 3rd Tuesday of month, 11:30 a.m. 200 S School St. Ukiah, CA 95482 200 S School St. Ukiah, CA 95482 Promotes tourism and works to strengthen and promote the historic downtown and businesses within the greater Ukiah area Duenas Rodin - Alternate Shannon Riley,Deputy City Manager; 467-5793 sriley@cityofukiah.com Mendocino Council of Governments (MCOG) 1st Monday of month, 1:30 p.m. Board of Supervisors Chambers 501 Low Gap Road Ukiah, CA Executive Director 367 N. State Street, Ste. 206 Ukiah, CA 95482 463-1859 Plan and allocate State funding, transportation, infrastructure and project County wide Brown Rodin- Alternate Tim Eriksen, Public Works Director/City Engineer; 463-6280 teriksen@cityofukiah.com Mendocino County Inland Water and Power Commission (IWPC) 2nd Thursday of month, 6:00 p.m. Civic Center 300 Seminary Avenue conference room 5 IWPC Staff P.O. Box 1247 Ukiah, CA 95482 391-7574 - Candace Horsley Develops coordination for water resources and current water rights: Potter Valley project - Eel River Diversion Orozco Brown- Alternate Sean White,Director of Water Resources; 463-5712 swhite@cityofukiah.com Mendocino Solid Waste Management Authority (MSWMA) 3rd Thursday of every other month (varies), 10:00 a.m. Willits Council Chambers Solid Waste Director 3200 Taylor Drive Ukiah, CA 95482 468-9710 County-wide Solid Waste JPA Brown Duenas- Alternate Tim Eriksen, Public Works Director/City Engineer; 463-6280 teriksen@cityofukiah.com Mendocino Transit Authority (MTA) Board of Directors Last Wednesday of month, 1:30 p.m. Alternating locations - Ukiah Conference Center or Fort Bragg, or Point Arena Executive Director 241 Plant Road Ukiah, CA 95482 462-1422 County-wide bus transportation issues and funding Duenas Orozco - Alternate Tim Eriksen, Public Works Director/City Engineer; 463-6280 teriksen@cityofukiah.com North Coast Opportunities (NCO)4th Wednesday of month, 2 p.m. Alternating locations - Ukiah and Lakeport Ross Walker, Governing Board Chair North Coast Opportunities 413 North State Street Ukiah, CA 95482 Assist low income and disadvantaged people to become self reliant Bartolomei (appointed 12/19/18) Tami Bartolomei, Community Services Administrator; 467-5765 tbartolomei@cityofukiah.com North Coast Rail Authority (NCRA)2nd Wednesday of month, 10:30 a.m.Various Locations - announced 419 Talmage Road, Suite M Ukiah, CA 95482 463-3280 Provides a unified and revitalized rail infrastructure meeting the freight and passenger needs of the region Shannon Riley, Deputy City Manager Shannon Riley,Deputy City Manager; 467-5793 sriley@cityofukiah.com Russian River Watershed Association (RRWA) 4th Thursday of month, 9:00 a.m. (only 5 times a year) Windsor Town Hall Russian River Watershed Association Attn: Daria Isupov 425 South Main St., Sebastopol, CA 95472 508-3670 Consider issues related to Russian river - plans projects and funding requests Rodin Brown- Alternate Tim Eriksen, Public Works Director/City Engineer; 463-6280 teriksen@cityofukiah.com Ukiah Valley Basin Groundwater Sustainability Agency (GSA) 2nd Thursday of month, 1:30 p.m. Board of Supervisors Chambers; 501 Low Gap Road Ukiah, CA County Executive Office Nicole French 501 Low Gap Rd., Rm. 1010 Ukiah, CA 95482 463-4441 GSA serves as the Groundwater Sustainability Agency in the Ukiah Valley basin Crane Duenas- Alternate Sean White, Director of Water Resources; 463-5712 swhite@cityofukiah.com COUNTY/REGIONAL One + Staff Alternate MTG DATE/TIME MEETING LOCATION MAILING ADDRESS/CONTACT COMMITTEE FUNCTION ASSIGNED TO PRINCIPAL STAFF SUPPORT Economic Development & Financing Corporation (EDFC) 2nd Thursday of month, 2:00 p.m. Primarily 631 S. Orchard Street (location varies) Executive Director 631 South Orchard Avenue Ukiah, CA 95482 467-5953 Multi-agency co-op for economic development and business loan program Riley (appointed 12/19/18) Shannon Riley, Deputy City Manager; 467-5793 sriley@cityofukiah.com Sun House Guild ex officio 2nd Tuesday of month, 4:30 p.m. Sun House 431 S. Main St. Ukiah, CA 431 S. Main Street Ukiah, CA 95482 467-2836 Support and expand Grace Hudson Museum Orozco Neil Davis- Alternate David Burton, Museum Director; 467-2836 dburton@cityofukiah.com Continued - COUNTY/REGIONAL One + Staff Alternate MTG DATE/TIME MEETING LOCATION MAILING ADDRESS/CONTACT COMMITTEE FUNCTION ASSIGNED TO PRINCIPAL STAFF SUPPORT Mendocino Youth Project JPA Board of Directors 3rd Wednesday of month, 7:45 a.m. 776 S. State Street Conference Room Mendocino Co. Youth Project 776 S. State Street, Ste. 107 Ukiah, CA 95482 707-463-4915 Targets all youth with a focus on drug and alcohol prevention, healthy alternatives and empowering youth to make healthy choices Cedric Crook, Patrol Lieutenant Cedric Crook, Patrol Lieutenant Nob; 463- 6771; ccrook@cityofukiah.com Northern California Power Agency (NCPA) - Commission 4th Thursday of month, 9:00 a.m. (see NCPA calendar) Roseville, CA and other locations 651 Commerce Drive Roseville, CA 95678 916-781-4202 Pool of State and local power utilities developing and operating power generation, providing scheduling and related energy services and providing regulatory and legislative support. Crane - Commissioner Grandi Sauers - Alternate and Commissioner in absence of Commissioner Crane Mel Grandi Cindi Sauers - Electric Utility Director; 463-6295 463-6286 mgrandi csauers@cityofukiah.com Northern California Power Agency (NCPA) – Lodi Energy Center (LEC) Appointment 2nd Monday of  month, 10:00 AM Lodi, CA and other locations 651 Commerce Drive Roseville, CA 95678 916-781-4299 Committee oversees the operation, maintenance and  expenditures of the LEC 300 MW generating project. Sauers – Project  Participate Appointee Cindy Sauers, Electric Utility Director, 463‐ 6286, csauers@cityofukiah.com 1 1/13/2022 ATTACHMENT 1 Page 856 of 858  2022 CITY COUNCIL SPECIAL ASSIGNMENTS LOCAL/COUNTY/REGIONAL/LIASONS OnGoing One or Two Council and/or Staff MTG DATE/TIME LOCATION MAILING ADDRESS/CONTACT COMMITTEE FUNCTION ASSIGNED TO PRINCIPAL STAFF SUPPORT League of California Cities Redwood Empire Legislative Committee Prior to Division Meetings, meets 3x in person and then via conference call Various locations that are announced Redwood Empire League President; Public Affairs Program Manager (916) 658-8243 Elected city officials and professional city staff attend division meetings throughout the year to share what they are doing and advocate for their interests in Sacramento Rodin Orozco-Alternate Sage Sangiacomo, City Manager; 463-6221 ssangiacomo@cityofukiah.com City Selection Committee Called as required by the Clerk of the Board BOS Conference Room 501 Low Gap Rd. Rm. 1090 Ukiah, CA C/O: BOS 501 Low Gap Rd., Rm 1090 Ukiah, CA 95482 463-4441 Makes appointments to LAFCO and Airport Land Use Commission Mayor Kristine Lawler, City Clerk; 463-6217 klawler@cityofukiah.com Investment Oversight Committee Varies Civic Center 300 Seminary Ave. Ukiah, CA 95482 Civic Center 300 Seminary Ave. Ukiah, CA 95482 Reviews City investments, policies, and strategies Crane Orozco, Alternate Alan Carter, Treasurer Dan Buffalo, Director of Finance; 463-6220 dbuffalo@cityofukiah.com Library Advisory Board 3rd Wednesdays of alternate months; 1:00 p.m. Various Mendocino County Libraries Ukiah County Library 463-4491 Review library policy and activities Supervisor Mulheren Kristine Lawler, City Clerk; 463-6217; klawler@cityofukiah.com Ukiah Players Theater Board of Directors 3rd Tuesday of month, 6:00 p.m 1041 Low Gap Rd Ukiah, CA 95482 462-1210 1041 Low Gap Rd Ukiah, CA 95482 462-1210 To oversee the activities, organization and purpose of the Ukiah Players Theater Greg Owen, Airport Manager (appointed 12/19/18) Kristine Lawler, City Clerk; 463-6217 klawler@cityofukiah.com Ukiah Unified School District (UUSD) Committee Quarterly 511 S. Orchard, Ste. D Ukiah, CA 95482 511 S. Orchard Ukiah, CA 95482 Information exchange with UUSD Board Chair, Mayor, Superintendent, and City Manager Mayor, City Manager and Police Chief Sage Sangiacomo, City Manager; 463-6221 ssangiacomo@cityofukiah.com Russian River Flood Control District (RRFCD) Liaison 1st Monday of month, 5:30 p.m. 151 Laws Ave.,Suite D Ukiah, CA 151 Laws Ave., Ukiah, CA 95482; rrfc@pacific.net; 462-5278 Proactively manage the water resources of the upper Russian River for the benefit of the people and environment of Mendocino County White/Orozco Sean White, Director of Water Resources; 463-5712 swhite@cityofukiah.com Mendocino County Local Area Formation Commission (LAFCO) 1st Monday of month, 9:00 a.m.Board of Supervisors Chambers Executive Director 200 S. School Street, Ste. 2 Ukiah, CA 95482 463-4470 Required by legislation - planning spheres of influence, annexation, service areas, and special districts (positions not active) Crane Rodin Craig Schlatter, Director of Community Development; 463-6219; cschlatter@cityofukiah.com Mendocino County Airport Land Use Commission As needed BOS Conference Room 501 Low Gap Rd., Rm. 1090, Ukiah, CA Mendocino County Executive Office 501 Low Gap Rd. Rm. 1010 Ukiah, CA 95482 To formulate a land use compatibility plan, provide for the orderly growth of the airport and the surrounding area, and safeguard the general welfare of the inhabitants within the vicinity Owen/Schlatter Greg Owen, Airport Manager; 467-2855; gowen@cityofukiah.com Craig Schlatter, Director of Community Development; 463-6219; cschlatter@cityofukiah.com Mendocino County 1st District Liaison Monthly; TBD Civic Center Annex conference room #5 411 West Clay St. Ukiah, CA 95482 Civic Center 300 Seminary Ave. Ukiah, CA 95482 To coordinate activities and policy development with the City's 1st District Supervisor Brown Crane- Alternate Sage Sangiacomo, City Manager; 463-6221; ssangiacomo@cityofukiah.com Mendocino County 2nd District Liaison 1st Wednesdays of month, 8:00 a.m. Civic Center Annex conference room #5 411 West Clay St. Ukiah, CA 95482 Civic Center 300 Seminary Ave. Ukiah, CA 95482 To coordinate activities and policy development with the County's 2nd District Supervisor Brown Shannon Riley, Deputy City Manager; 467- 5793 sriley@cityofukiah.com LOCAL/COUNTY/REGIONAL/LIASONS OnGoing One or Two Council and/or Staff MTG DATE/TIME LOCATION MAILING ADDRESS/CONTACT COMMITTEE FUNCTION ASSIGNED TO PRINCIPAL STAFF SUPPORT Fire Executive Committee 2nd Wednesdays of month, 3:45 p.m. Ukiah Valley Conference Center, 200 S. School Street Ukiah, CA Stephanie Abba Civic Center 300 Seminary Ave. Ukiah, CA 95482 sabba@cityofukiah.com Per the recently adopted agreement between the City of Ukiah and the Ukiah Valley Fire Protection District Orozco/Brown Doug Hutchison, Fire Chief; 463-6263; dhutchison@cityofukiah.com STANDING COMMITTEES MTG DATE/TIME LOCATION MAILING ADDRESS/CONTACT COMMITTEE FUNCTION ASSIGNED TO PRINCIPAL STAFF SUPPORT Equity and Diversity TBD Virtual Meeting Room (link to be created) Civic Center 300 Seminary Ave. Ukiah, CA 95482 Improve diversity and equity in the City’s workforce and municipal services Orozco/Duenas Traci Boyl, City Manager's Office Management Analyst; 467-5720 tboyl@cityofukiah.com 2 1/13/2022 Page 857 of 858 COMMITTEE ASSIGNED TO PRINCIPAL STAFF SUPPORT Electric Grid Operational Improvements Crane/Orozco Mel Grandi Cindy Sauers, Electric Utility Director; 463-629586 mgrandi csauers@cityofukiah.com Trench Cut Policy Development Crane/Brown Tim Eriksen, Public Works Director/City Engineer; 463-6280 teriksen@cityofukiah.com Budget Development Best Practices and Financial Policy For FY 21/22 Budget Crane/Brown Dan Buffalo, Director of Finance; 463-6220 dbuffalo@cityofukiah.com Sheri Mannion, Human Resource Director/Risk Manager; 463-6272, smannion@cityofukiah.com Budget Development Best Practices and Financial Policy For FY 22/23 Budget Crane/Brown Dan Buffalo, Director of Finance; 463-6220 dbuffalo@cityofukiah.com Sheri Mannion, Human Resource Director/Risk Manager; 463-6272, smannion@cityofukiah.com Advance Planning & Policy for Sphere of Influence (SOI), Municipal Service Review (MSR), Annexation, Tax Sharing, Detachment, and Out of Area Service Agreements Crane/Rodin Sage Sangiacomo, City Manager 463-6221 ssangiacomo@cityofukiah.com Shannon Riley, Deputy City Manager 467-5793 sriley@cityofukiah.com Craig Schlatter, Community Development Director 463-6219 cschlatter@cityofukiah.com Sean White, Director of Water Resources; 463-5712 swhite@cityofukiah.com Tim Eriksen, Public Works Director/City Engineer; 463-6280 teriksen@cityofukiah.com Mel Grandi Cindy Sauers, Electric Utility Director; 463-629586 mgrandi csauers@cityofukiah.com Dan Buffalo, Director of Finance; 463-6220 dbuffalo@cityofukiah.com 2021 Electric Rate Study Crane/Duenas Mel Grandi Cindy Sauers, Electric Utility Director;  463‐629586 mgrandi csauers@cityofukiah.com Housing Element and Implementation Review Rodin/Orozco Craig Schlatter, Community Development Director 463-6219 cschlatter@cityofukiah.com Planning Commissioner Appointment Process Crane/Rodin Craig Schlatter, Community Development Director 463‐6219 cschlatter@cityofukiah.com Darcy Vaughn, Assistant City Attorney 462‐6846 dvaughn@cityofukiah.onmicrosoft.com UVSD/ City Relations Ad hoc committee to address specific issues with the Ukiah Valley Sanitation District, including discussion of overall sewer system service delivery policies, operating policy revisions, potential revisions to the current Operating Agreement, and cost sharing Crane/Brown Dan Buffalo, Director of Finance;  463‐6220 dbuffalo@cityofukiah.com Sean White, Water Resources Director 463‐5712 swhite@cityofukiah.com  Upper Russian River Water Agency/City Relations Crane/Brown Sean White, Director of Water Resources;  463‐5712 swhite@cityofukiah.com    Orr Street Bridge Corridor Rodin/Duenas Tim Eriksen, Public Works Director/City Engineer; 463-6280 teriksen@cityofukiah.com Complete Streets Rodin/Crane Tim Eriksen, Public Works Director/City Engineer; 463-6280 teriksen@cityofukiah.com Shannon Riley, Deputy City Manager 467-5793 sriley@cityofukiah.com Neil Davis, Community Services Director 467-5764 ndavis@cityofukiah.com 2022 AD HOC COMMITTEES 3 1/14/2022 Page 858 of 858