Agenda, first session — Fairfield City Council, January 17, 2023 (part 1 of 4)

For individuals with hearing or speaking limitations, dial 711 or (800) 7352922 (English). For Spanish, Tagalog or other language, please dial (800) 8553000 and provide the communication assistant with the following City telephone number: (707) 3994010.

Pursuant to AB 361 regarding public meetings held during the COVID19 emergency, councilmembers may attend via teleconference. Members of the public can observe the meeting on Comcast Cable Channel 26, ATT UVerse 99, and webstreamed live at www.youtube.com/user/FFCATV/live . The public may join the meeting via Zoom at https://fairfieldca.zoom.us/j/89060213840?pwd=UUd0WlpEMStLemcxbld4dzVMK3Z5dz09 or via phone (408) 6380968, Webinar ID: 890 6021 3840, Passcode: 7074287400 CALL TO ORDER 6:00 PM
ROLL CALL
Councilmember Doug Carr
Councilmember Doriss Panduro
Councilmember Scott Tonnesen
Councilmember Rick Vaccaro
Councilmember K. Patrice Williams
Vice Mayor Pam Bertani
Mayor Catherine "Cat" Moy
INVOCATION Worship Pastor Sam Morris, BayNorth Church of Christ PLEDGE OF ALLEGIANCE
COUNCIL REPORTS
CITY MANAGER REPORT
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PRESENTATIONS

1.Proclamation Declaring "Human Trafficking Prevention and Awareness Month" Presented by Councilmember Doug Carr
Contact:Karen Rees, (707) 428 7767
a

2.Poem Reading "Beyond the Dream" by Poet Laureate Suzanne Bruce Contact:Karen L. Rees, (707) 4287767
a

3.Proclamation Declaring "Martin Luther King Jr. Day" Presented by Councilmember K. Patrice Williams
Contact:Karen L. Rees, (707) 4287767
a
PUBLIC COMMENTS
PUBLIC COMMENTS
Persons wishing to address the City Council on subjects not on the agenda but within the jurisdiction of the council may do so at this time. The council cannot discuss or take action on matters not on the agenda for this meeting, but councilmembers may briefly respond to statements made or questions raised by the public, ask for clarification from staff, refer the matter to staff, request staff to report back to the council at a subsequent meeting, or place the matter on a future agenda. To speak on an agenda item please use the “raise your hand” feature or press *9 on your phone. Speakers are limited to three minutes per item.

CONSENT CALENDAR
All matters listed on the Consent Calendar are to be approved with one motion unless a member of the City Council or the public requests that separate action be taken on a specific item.

4.Approval of Meeting Minutes from November and December 2022 Recommended Action
Approve the meeting minutes.

Funding Source
N/A
Contact:Esther Beavers, (707) 4287402
a

5.Minute Action Approving Mayor's Appointments to the FairfieldSuisun Sewer District Board for 2023
Recommended Action
Approve mayor's appointment recommendation.

Funding Source
N/A
Contact:Esther Beavers, (707) 4287402
a
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6.Resolution 202301 of the City Council of the City of Fairfield Reconsidering and Authorizing Public Meetings to be Held Via Teleconferencing Pursuant to Government Code Section 54953(e) and Making Findings and Determinations Regarding the Same Recommended Action
Adopt resolution.

Funding Source
N/A
Contact:Karen Rees, (707) 4287767
a

7.Resolution 202302 of the City Council of the City of Fairfield Intention to Establish a Community Facilities District, One or More Improvement Areas and a Future Annexation Area for the One Lake Project (“Resolution of Intention to Establish”)
Resolution 202303 of the City Council of the City of Fairfield Intention to Incur Bonded and Other Indebtedness (“Resolution of Intention to Incur Debt”) Recommended Action
Adopt resolutions.

Funding Source
N/A
Contact:John Furtado, (707) 4287629
a

8.Resolution 202304 of the City Council of the City of Fairfield Approving an Amendment to Resolution 99302 Revising the Structure and Duties of the Fairfield Golf Advisory Board Recommended Action
Adopt resolution.

Funding Source
N/A
Contact:Kristina Kaunzinger, (707) 4287470
a

9.Resolution 202305 of the City Council of the City of Fairfield Approving the Plans and Specifications and Awarding a Contract to Dirt & Aggregate Interchange, Inc. for the Fairfield Highway Safety Improvement Program Cycle 9 Guardrail Project, Federal Aid Project No.

HSIPL 5132052 and Authorizing an Update to the Fiscal Year 20222023 Budget Recommended Action
Adopt resolution.

Funding Source
$1,003,960; Capital Streets Fund
Contact:Phil Layoso, (707) 4287505
a
NEW BUSINESS

10.Resolution 202306 of the City Council of the City of Fairfield Approving the City’s Fiscal Year 202122 Annual Comprehensive Financial Report and the Draft Schedule of Expenditures for Federal Awards Report (Single Audit) and Other Reports
Recommended Action
Adopt resolution.

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CITY OF FAIRFIELDFAIRFIELD CITY COUNCILREGULAR MEETINGTUESDAY, JANUARY 17, 2023; 6:00 PMCOUNCIL CHAMBER, 1000 WEBSTER STREET, FAIRFIELD,CA 94533 OR VIA ZOOMAGENDANotice to PublicThe City of Fairfield is committed to providing meeting facilities that areaccessible to persons with disabilities and/or have language barriers. To requestmeeting materials in alternative formats, or to request a sign languageinterpreter, realtime captioning, or other accommodation, please contact theCity Clerk's Office, at least 72 hours in advance of the meeting at (707) 4287400.For individuals with hearing or speaking limitations, dial 711 or (800) 7352922(English). For Spanish, Tagalog or other language, please dial (800) 8553000and provide the communication assistant with the following City telephonenumber: (707) 3994010.Pursuant to AB 361 regarding public meetings held during the COVID19 emergency,councilmembers may attend via teleconference. Members of the public can observe the meeting onComcast Cable Channel 26, ATT UVerse 99, and webstreamed live at www.youtube.com/user/FFCATV/live . The public may join the meeting via Zoom at https://fairfieldca.zoom.us/j/89060213840?pwd=UUd0WlpEMStLemcxbld4dzVMK3Z5dz09 or viaphone (408) 6380968, Webinar ID: 890 6021 3840, Passcode: 7074287400CALL TO ORDER 6:00 PMROLL CALLCouncilmember Doug CarrCouncilmember Doriss PanduroCouncilmemberScott TonnesenCouncilmember Rick VaccaroCouncilmember K. Patrice Williams Vice Mayor Pam BertaniMayor Catherine "Cat" MoyINVOCATION Worship Pastor Sam Morris, BayNorth Church of ChristPLEDGE OF ALLEGIANCECOUNCIL REPORTSCITY MANAGER REPORTCITY ATTORNEY REPORTCITY CLERK REPORTPRESENTATIONS1.Proclamation Declaring "Human Trafficking Prevention and Awareness Month" Presented byCouncilmember Doug CarrContact:Karen Rees, (707) 428 7767a2.Poem Reading "Beyond the Dream" by Poet Laureate Suzanne BruceContact:Karen L. Rees, (707) 4287767a3.Proclamation Declaring "Martin Luther King Jr. Day" Presented by Councilmember K. PatriceWilliamsContact:Karen L. Rees, (707) 4287767aPUBLIC COMMENTS PUBLIC COMMENTSPersons wishing to address the City Council on subjects not on the agenda but within the jurisdictionof the council may do so at this time. The council cannot discuss or take action on matters not on theagenda for this meeting, but councilmembers may briefly respond to statements made or questionsraised by the public, ask for clarification from staff, refer the matter to staff, request staff to report backto the council at a subsequent meeting, or place the matter on a future agenda. To speak on anagenda item please use the “raise your hand” feature or press *9 on your phone. Speakers arelimited to three minutes per item.CONSENT CALENDARAll matters listed on the Consent Calendar are to be approved with one motion unless a member ofthe City Council or the public requests that separate action be taken on a specific item.4.Approval of Meeting Minutes from November and December 2022Recommended ActionApprove the meeting minutes.Funding SourceN/AContact:Esther Beavers, (707) 4287402a5.Minute Action Approving Mayor's Appointments to the FairfieldSuisun Sewer District Board for2023Recommended ActionApprove mayor's appointment recommendation.Funding SourceN/AContact:Esther Beavers, (707) 4287402a6.Resolution 202301 of the City Council of the City of Fairfield Reconsidering and AuthorizingPublic Meetings to be Held Via Teleconferencing Pursuant to Government Code Section54953(e) and Making Findings and Determinations Regarding the SameRecommended ActionAdopt resolution.Funding SourceN/AContact:Karen Rees, (707) 4287767a7.Resolution 202302 of the City Council of the City of Fairfield Intention to Establish a CommunityFacilities District, One or More Improvement Areas and a Future Annexation Area for the OneLake Project (“Resolution of Intention to Establish”) Resolution 202303 of the City Council of the City of Fairfield Intention to Incur Bonded andOther Indebtedness (“Resolution of Intention to Incur Debt”)Recommended ActionAdopt resolutions.Funding SourceN/AContact:John Furtado, (707) 4287629a8.Resolution 202304 of the City Council of the City of Fairfield Approving an Amendment toResolution 99302 Revising the Structure and Duties of the Fairfield Golf Advisory BoardRecommended ActionAdopt resolution.Funding SourceN/AContact:Kristina Kaunzinger, (707) 4287470a9.Resolution 202305 of the City Council of the City of Fairfield Approving the Plans andSpecifications and Awarding a Contract to Dirt & Aggregate Interchange, Inc. for the FairfieldHighway Safety Improvement Program Cycle 9 Guardrail Project, Federal Aid Project No.HSIPL 5132052 and Authorizing an Update to the Fiscal Year 20222023 BudgetRecommended ActionAdopt resolution.Funding Source$1,003,960; Capital Streets FundContact:Phil Layoso, (707) 4287505aNEW BUSINESS10.Resolution 202306 of the City Council of the City of Fairfield Approving the City’s Fiscal Year202122 Annual Comprehensive Financial Report and the Draft Schedule of Expenditures forFederal Awards Report (Single Audit) and Other ReportsRecommended ActionAdopt resolution.Funding SourceN/AContact:John Furtado, (707) 4287495a11.First Reading and Introduction of Ordinance 202301 of the City Council of the City of FairfieldAmending Section 2.7 to Chapter 2, Article II of the Fairfield Municipal Code RegardingAppointment, Removal, and Term of Office of the City Manager to Reflect the Current Number ofCouncil Members Required for a Majority Vote, Remove the Requirement for an Indefinite Term,and Remove the Gender Classification of the City ManagerRecommended ActionWaive full reading, read by title only, and introduce ordinance for first reading.Funding SourceN/AContact:David Lim, (415) 4218484aPUBLIC HEARINGS12.Public Hearing; and First Reading and Introduction of Ordinance 202302 of the City Council of the City of FairfieldAmending Section 25.20.3 of Chapter 25, Article I of the Municipal Code, also Known as theZoning Ordinance, to Include Section 25.20.3.4 SB 9 Development Regulations and AssociatedTable 252.1 RVL and RL District Development Regulations Under Senate Bill 9Recommended ActionHold public hearing; waive full reading, read by title only and introduce ordinance for firstreading.Funding SourceN/AContact:YeeLynn Wong, (707) 4287449a13.Public Hearing; andResolution 202307 of the City Council of the City of Fairfield Adopting a Specific PlanAmendment (SP2022002) for the Heart of Fairfield Plan to Redesignate Parcels at 601 BeckAvenue (APN: 0028920300), 649 Beck Avenue (APN: 0028920290), and 699 Beck Avenue(APN: 0028920280) from Community Commercial (CC) to MixedUse West Texas (MUWTS);andFirst Reading and Introduction of Ordinance 202303 of the City Council of the City of FairfieldAmending Various Sections of Chapter 25, Article I of the Municipal Code, also Known as theZoning Ordinance, to Adjust Land Use Regulations and Development Standards in Alignmentwith the Goals and Objectives of the Heart of Fairfield Plan; Correcting the Description of theWest Texas Street (HWT) District; Adjusting Permit Requirement Thresholds for Heart ofFairfield Plan Zoning Districts; Creating Definitions for Amenity Zone, Activity Zone, andTransparency; and Amending Chapter 25, Article I of the Municipal Code, Also Known as theZoning Map, Rezoning a Parcel at 1100 Texas Street (APN: 0030174080) from PublicFacilities (PF) District – Downtown Area Parking (P1) Overlay District To Downtown (HD)District – Downtown Area Parking (P1) Overlay District, and Parcels at 601 Beck Avenue (APN:
0028920300), 649 Beck Avenue (APN: 0028920290), and 699 Beck Avenue (APN: 0028 920280) from Community Commercial (CC) District To HWT District; and First Reading and Introduction of Ordinance 202304 of the City Council of the City of Fairfield Amending Various Sections of Chapter 25, Article I of the Fairfield Municipal Code, also Known as the Zoning Ordinance, to Address New Issues, Correct Typographical Errors, Make Minor Organizational Revisions, Clarify Language, Bring the Zoning Ordinance into Closer Alignment with General Plan Goals, Objectives, and Policies; and Bring the Zoning Ordinance into Full Compliance with State Law
Recommended Action
Hold public hearing; adopt resolution; waive full readings, read by titles only; and introduce ordinances for first reading.

Funding Source
N/A
Contact:Jonathan Atkinson, (707) 4287387
a

14.Public Hearing; and
Resolution 202308 of the City Council of the City of Fairfield [Approving/Sustaining] [Denying/Overruling] the Appeal of the Revocation of Business License Number 07000966 Belonging to Smoke N More LLC, Located at 1306 West Texas Street, Fairfield, CA 94533 Recommended Action
Hold public hearing and adopt resolution approving/sustaining or denying/overruling the appeal of the revocation of business license #07000966 for Smoke N More LLC.

Funding Source
N/A
Contact:John Robinson, (803) 3488545
a
ADJOURN TO TUESDAY, FEBRUARY 7, 2023, 6:00 P.M., COUNCIL CHAMBER.

Any disclosable public records related to an open session item on a regular meeting agenda and distributed by the City of Fairfield to all or a majority of the Fairfield City Council less than 72 hours prior to that meeting are available for public inspection at City Hall, in the 4th floor lobby, 1000 Webster Street, Fairfield, California during normal business hours.

PUBLIC NOTIFICATION
I, Esther Beavers, Deputy City Clerk, do hereby certify that I have caused a true copy of the above notice and agenda to be delivered to each of the members of the Fairfield City Council, at the time and in the manner prescribed by law and that this agenda was posted at City Hall, 1000 Webster Street, Fairfield, California on January 11, 2023.

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Agenda Item No: 4.

AGENDA REPORT
DATE:January 17, 2023
TO:Mayor and City Council
FROM:David Gassaway, City Manager
SUBJECT:Approval of Meeting Minutes from November and December 2022 RECOMMENDED ACTION
Approve the meeting minutes.

STATEMENT OF ISSUE
Minutes need approval by the City Council.

DISCUSSION
The City Council Closed Session Minutes and City Council Minutes for November and December 2022 have been approved by the city attorney and need council approval.

FINANCIAL IMPACT
N/A
PUBLIC CONTACT/ADVISORY BODY RECOMMENDATION
N/A
ALTERNATIVE ACTION
The council may choose to modify the minutes which will result in bringing this item back at a future date.

STAFF CONTACT
Esther Beavers, Deputy City Clerk
(707) 4287402
[email protected]
COORDINATED WITH
City Attorney's Office
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Agenda Item No: 4.AGENDA REPORTDATE:January 17, 2023 TO:Mayor and City CouncilFROM:David Gassaway, City ManagerSUBJECT:Approval of Meeting Minutes from November and December 2022RECOMMENDED ACTIONApprove the meeting minutes.STATEMENT OF ISSUEMinutes need approval by the City Council.DISCUSSIONThe City Council Closed Session Minutes and City Council Minutes for November and December 2022have been approved by the city attorney and need council approval.FINANCIAL IMPACTN/APUBLIC CONTACT/ADVISORY BODY RECOMMENDATIONN/AALTERNATIVE ACTIONThe council may choose to modify the minutes which will result in bringing this item back at a futuredate.STAFF CONTACTEsther Beavers, Deputy City Clerk(707) 428[email protected] COORDINATED WITH
City Attorney's Office
ATTACHMENTS:

Description
Closed Session Minutes 11152022
City Council Minutes 11152022
Closed City Council Minutes 12062022
City Council Minutes 12062022
Closed Session Minutes 12202022
City Council Minutes 12202022
REVIEWERS:

Reviewer Action Date
Beavers, Esther Approved 12/28/2022 11:41 AM
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City Council Special Meeting November 15, 2022

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CITY OF FAIRFIELD

FAIRFIELD CITY COUNCIL

SPECIAL MEETING

CLOSED SESSION
TUESDAY, NOVEMBER 15, 2022; 5:00 PM
CITY HALL, CITY MANAGER'S OFFICE, 1000 WEBSTER STREET, 4TH FLOOR, FAIRFIELD, CA 94533

CLOSED SESSION AGENDA

MINUTES

CALL TO ORDER
Mayor Harry T. Price called the meeting to order at 5:00 p.m.

Present in person were Councilmembers Pam Bertani, Cat Moy, Doriss Panduro, Chuck Timm, and Scott Tonnesen; Vice Mayor Rick Vaccaro, and Mayor Price.

PUBLIC COMMENT: No members of the public wished to speak.

The City Council went into closed session with attorney Richard Osman, attorney Adam Ambrozy, City Attorney David Lim, and Interim City Manager David Gassaway.

CLOSED SESSION

PRESENTATIONS

1. CONFERENCE WITH LEGAL COUNSEL— ANTICIPATED LITIGATION Government Code Section 54956.9(d)(2)-(4)
Re: Claim of defamation by Councilmember Cat Moy and City Council against Showcase LLC Contact: David Lim, (415) 421-8484
The City came out of closed session. The City Attorney did not have any announcements.

The meeting was adjourned at approximately 5:45 p.m.
______________________________
City Attorney
________________________________
Mayor
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CITY OF FAIRFIELD

FAIRFIELD CITY COUNCIL

REGULAR CONCURRENT MEETING
TUESDAY, NOVEMBER 15, 2022; 6:00 PM
COUNCIL CHAMBER, 1000 WEBSTER STREET, FAIRFIELD,
CA 94533 OR VIA ZOOM

MINUTES

CALL TO ORDER

Mayor Harry T. Price called the meeting to order at 6:06 p.m.

ROLL CALL

On roll call were Councilmembers Pam Bertani, Cat Moy, Doriss Panduro, Chuck Timm, Scott Tonnesen , Vice Mayor Rick Vaccaro, and Mayor Price.

INVOCATION

Major Bradley Kelsey, Travis Air Force Base Chaplain, gave an invocation.

PLEDGE OF ALLEGIANCE

Councilmember Bertani led the Pledge of Allegiance.

COUNCIL REPORTS

Councilmember Panduro reported she attended the 25th Annual Awards Dinner for Solano Transportation Authority on November 9. The City of Fairfield won two awards for the West Texas Gateway Project, 1) Project of the Year; and 2) Transportation for Sustainable Communities! Next, she reported she attended an event hosted by Voces Unidas de Solano, in conjunction with the Mexican Consulate, where they helped provide Mexican passport cards and voter registration cards to the local Latino community. Lastly, she attended Pete Escovedo, and his Latin Jazz Orchestra performed at the Downtown Theatre to a packed house, and it was a fantastic show!

Councilmember Tonnesen had no report.

Chuck Timm reported he attended the Veterans Day Concert and Parade, which he felt was smaller than the 4th of July Parade but nicer. He thanked veterans for their service from the bottom of his heart.

Councilmember Moy (Mayor-Elect) thanked Paradise Valley Estates, their Chef Michael Quinn, and Sean Quinn for providing 100 turkeys for a church that could not fulfill the need to provide meals for folks. She also thanked Joyce Oren, who provided (and paid for) another 100 turkeys , and a single mother who donated six turkeys. She stated that Fairfield is a very generous community and wished everyone a very Happy Thanksgiving.

Councilmember Bertani reported that Fairfield Clergy Action Network (CAN) would host a free Thanksgiving dinner for those in need on November 21 at Willow Hall . She asked volunteers to meet at 10 a.m. and stated that toiletries and other items would be distributed to the participants. Next, she reported a complaint from a resident of Paradise Valley that maintenance workers were leaf-blowing at 5 a.m. and asked David Gassaway and staff to follow up on the complaint. Lastly, she thanked Team Travis for everything!
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Vice Mayor Vaccaro stated it was the first Council meeting with newly installed Police Chief Dan Marshall. He congratulated the Chief and wished him well! He reported that he was hosting a community meeting at Paradise Valley Estates on November 16 at 7 p.m. to address crime in the area.

Mayor Price reported that the Veterans Day Commemoration Concert and Parade were significant events, and he said it was beautiful to have so many Travis AFB members participate. Next, he reported that he attended a special Fairfield Host Lions Club meeting, where members came from all over California. Lastly, he stated that he and Councilmember Scott Tonnesen participated at the California Assessors Association Conference at Hilton Garden Inn earlier in the day and presented Solano County Assessor-Recorder Mark Tonnesen (brother of Scott) with a key to the City of Fairfield, as he’s retiring.

CITY MANAGER REPORT

Interim City Manager David Gassaway invited the community to attend Small Business Saturday in Downtown Fairfield on November 26 from 12 to 6 pm. He shared that there would be 100 vendors participating and lots of “pop-up” shops. He stated there were no changes to the agenda.

CITY ATTORNEY REPORT

City Attorney David Lim stated he had no report from today’s closed session but that he had a report from the November 1, 2022, closed session in the matter of Vallejo Sun and Scott Morris vs. City of Fairfield Police Department and Deanna Cantrell, Case No. FCS058912, Solano County Superior Court.

He reported that City Council agreed to settle the case by filing a notice of dismissal in the amount of $4,000 to the Vallejo Sun’s attorney and disclosing specific body cam footage.

CITY CLERK REPORT

City Clerk Karen Rees had nothing to report.

PRESENTATIONS

1. Proclamation Declaring Small Business Saturday Presented by Councilmember Tonnesen

2. Proclamation declaring Native American Heritage Month presented by Councilmember Moy to Omar Carrillo, Director of Government Affairs, Yocha Dehe Wintun Nation.

3. Deputy City Clerk Esther Beavers congratulated the Fairfield 101 Civic Academy graduation class and distributed certificates.

4. Presentation by Colonel Garlow, Travis Air Force Base - Intergovernmental Support Agreement Advancement

PUBLIC COMMENTS

Sarah Cornwall spoke about the California Conservation Corps.

Linda Elkins spoke about Laurel Creek and community cleanup.

She convened a joint City Council and Housing Authority meeting at 6:55 p.m.

JOINT MEETING - CONSENT CALENDAR

City Clerk Rees read the title of Item 5 as there was a request to speak on the item.

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5. Resolution 2022-293 of the City Council of the City of Fairfield Declaring That Certain Real Properties Owned by the City, Under Government Code Section 54221, are Surpl us and Not Necessary for the City’s Use; and

Resolution HA2022-09 of the Fairfield Housing Authority Declaring That Certain Real Properties Owned by the Fairfield Housing Authority, Under Government Code Section 54221, are Surplus and Not Necessary for the Housing Authority’s Use

Nora Dizon spoke on Item 5.

Vice Mayor Vaccaro made a motion to approve Resolution 2022 -293 and HA2022-09. Councilmember Timm seconded the motion. The motion carried unanimously.

Reconvened meeting of the City Council at 7:00 p.m.

CONSENT CALENDAR

All matters listed on the Consent Calendar are to be approved with one motion unless a member of the City Council or the public requests that separate action is taken on a specific item.

6. Resolution 2022-294 of the City Council of the City of Fairfield Reconsidering and Authorizing Public Meetings to be Held Via Teleconferencing Pursuant to Government Code Section 54953(e) and Making Findings and Determinations Regarding the Same

7. Resolution 2022-295 of the City Council of the City of Fairfield Canceling January 3, July 4, and August 1, 2023, City Council Meetings

8. Approval of Meeting Minutes from October 2022

9. Resolution 2022-296 of the City Council of the City of Fairfield Adopting Updates to the 2022 City Council Handbook

10. Resolution 2022-297 of the City Council of the City of Fairfield Approving the Fiscal Year 2022- 2023 Supplement to Engineer’s Report, as Modified, Confirming the Boundaries, and Deferring the Fiscal Year 2022-2023 Levy and Collection of Assessments for the Smith Ranch Assessment District

11. Resolution 2022-298 of the City Council of the City of Fairfield Authorizing Task Order No. 16 for Kimley-Horn & Associates to Provide Engineering Services for Fiber Communications (Broadband) Asset Field Investigation and Authorizing an Update to the Fiscal Year 2022-2023 Budget

12. Resolution 202-299 of the City Council of the City of Fairfield Authorizing the City Manager to Execute a Blanket Intergovernmental Support Agreement between the City of Fairfield and Travis Air Force Base

13. Resolution 2022-300 of the City Council of the City of Fairfield Approving the Plans and Specifications and Awarding a Contract to CWS Construction Group, Inc. for the North Bay Regional Water Treatment Plant Laboratory Improvement Project; and

Resolution 2022-301 of the City Council of the City of Fairfield Authorizing the City Manager to Execute Amendment No. 1 to Task Order No. 3 for West Yost Associates to provide Construction Support Services for the North Bay Regional Water Treatment Plant Laboratory Improvement Project

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14. Resolution 2022-302 of the City Council of the City of Fairfield Authorizing the Ci ty Manager to Execute the 2022 Amended and Restated Clipper® Memorandum of Understanding

15. Resolution 2022-303 of the City Council of the City of Fairfield Authorizing the Execution and Delivery of a First Supplement to Fiscal Agent Agreement for the City of Fairfield Community Facilities District No. 3 (North Cordelia General Improvements) Special Tax Refunding Bonds, Series 2018, and Approving and Authorizing Related Actions

Councilmember Tonnesen asked for Item 16 to be pulled for discussion.

16. Resolution 2022-304 of the City Council of the City of Fairfield Approving an Amendment to Resolution 99-302 Revising the Structure and Duties of the Fairfield Golf Advisory Board

Councilmembers Bertani, Tonnesen and Timm made comments and asked questions. Director of Parks & Recreation Kristina Chamberlin made a presentation and answered questions.

Councilmember Tonnesen made a motion to table Item 16 to a date uncertain. Councilmember Timm seconded the motion. The motion carried unanimously.

17. Resolution 2022-305 of the City Council of the City of Fairfield Updating Resolution 2020-208 Authorizing the City of Fairfield to Submit an Application for the Housing and Community Development Permanent Local Housing Allocation (PLHA) Program Funding and to Sign and Execute Standard Program Agreements

18. Provide Second Reading and Adopt Ordinance 2022-16 of the City Council of the City of Fairfield Amending Chapter 25, Article I of the Fairfield City Code (also known as the Zoning Ordinance and the Zoning Map) to Rezone Approximately 19.44 Acres at 300 Chadbourne Road (APNs: 0028-750-240, -250, -260, -270, -290, and -300) from CR (Regional Commercial) District to IL (Limited Industrial) District

Vice Mayor Vaccaro made a motion to approve the Consent Calendar as presented excluding Item #16.

Councilmember Bertani seconded the motion. The motion carried unanimously.

NEW BUSINESS

19. Measure P Oversight Committee Annual Report was presented by Vice Chair Steve Vancil. City Council received the report and thanked the Committee for its diligent oversight.

PUBLIC HEARINGS

20. Chief Building Official Jeff Thomas recommended to Council that it open the Public Hearing; and approve the second reading of Ordinance 2022-14 of the City Council of the City of Fairfield Repealing and Replacing Chapter 5 of the City Of Fairfield Municipal Code (Also Known as the Building and Housing Code of The City Of Fairfield), Adopting by Reference Title 24, of the 2022 California Code of Regulations, Known Collectively as the California Building Standards Code; Respectively Part 2, California Building Code; Part 2.5, California Residential Building Code; Part 3, California Electrical Code; Part 4, California Mechanical Code; Part 5, California Plumbing Code; Part 6, California Energy Code; Part 8, California Historical Building Code; Part 9, California Fire Code (as Amended in Chapter 8 of the City of Fairfield Municipal Code); Part 10, California Existing Building Code; Part 11, California Green Building Standards Code (Calgreen Code); Part 12, California Referenced Standards Code, and Also Adopting the 2021 International Property Maintenance Code, and Supplementary Secondary References .

Mayor Price opened the public hearing. Dr. Bonnie Hamilton spoke on Item 20 (online). Mayor Price Packet Page 12 of 812Attachment 2 Page 4 of 6

closed the public hearing.

Councilmember Timm made a motion to approve Ordinance 2022-14. Councilmember Tonnesen seconded the motion. The motion carried unanimously.

21. Fire Marshall Steven Conti recommended to Council that it open the public hearing; and approve the second reading of Ordinance 2022-15 of the City Council of the City of Fairfield Repealing and Replacing Chapter 8 (Fire Prevention Code) of the Fairfield City Code, Adopting by Reference California Code of Regulations, Title 24, Part 9, Known as the 2022 California Fire Code, with Amendment s to Reflect Local Conditions, and Adopting by Reference Certain Provisions of the 2021 International Fire Code.

Fire Marshall Conti thanked his Fire Prevention Team for their hard work: Administrative Technician II Anjurle Duchaussee, Fire Inspectors Victor Daniel, and Tyler Hays.

Mayor Price opened the public hearing. There were no requests to speak. Mayor Price closed the public hearing.

Councilmember Bertani made a motion to approve Ordinance 2022 -15. Vice Mayor Vaccaro seconded the motion. The motion carried unanimously.

22. Public Works Management Analyst Chris Lewis recommended to Council that it open the public hearing; and approve Resolution 2022-306 of the City Council of the City of Fairfield Approving the Engineer’s Report and Assessment Diagram Contained Therein Regarding the Annexation of Territory Designated as Annexation No. 8 (LogistiCenter at Fairfield) to the City of Fairfield Landscaping and Lighting Maintenance District No. 17 ChadbourneBeckCordelia; and the Levy and Collection of Annual Assessments Related Thereto Commencing with Fiscal Year 20232024; and

Resolution 2022-307 of the City Council of the City of Fairfield Declaring the Results of a Property Owner Protest Ballot Proceeding for the City of Fairfield Landscaping and Lighting Maintenance District No. 17 ChadbourneBeckCordelia, Annexation No. 8 (LogistiCenter at Fairfield); and the Levy and Collection of Annual Assessments Related Thereto Commencing Fiscal Year 20232024; and

Resolution 2022-308 of the City Council of the City of Fairfield Ordering the Annexation of Territory (LogistiCenter at Fairfield) to the City of Fairfield Landscaping and Lighting Maintenance District No. 17 ChadbourneBeckCordelia; Designation as Annexation No. 8; and the Levy and Collection of Annual Assessments Related Thereto Commencing Fiscal Year 2023-2024

Mayor Price opened the public hearing. There were no requests to speak. Mayor Price closed the public hearing.

Councilmember Panduro made a motion to approve Resolution 2022 -306. Councilmember Tonnesen seconded the motion. The motion carried unanimously.

City Clerk Rees opened the ballot and stated it was a YES vote in favor of annexation.

Vice Mayor Vaccaro made a motion to approve Resolutions 2022-307 and 2022-308. Councilmember Moy seconded the motion. The motion carried unanimously.

23. Public Works Management Analyst Chris Lewis recommended to Council that it open the Public Hearing; and approve Resolution 2022-309 of the City Council of the City of Fairfield Annexing Territory (LogistiCenter at Fairfield) to Community Facilities District No. 2012-2 (Public Safety Services, Open Space Operation, and Park Maintenance) as Annexation No. 61, Authorizing the Levy of a Special Tax Packet Page 13 of 812Attachment 2 Page 5 of 6

Within the Annexed Territory, and Submitting the Levy of a Special Tax to the Qualified Electors Thereof; and

Resolution 2022-310 of the City Council of the City of Fairfield Declaring the Results of a Special Annexation Election in Territory Annexed to Community Facilities District No. 2012-2 (Public Safety Services, Open Space Operation, and Park Maintenance), D etermining the Validity of Prior Proceedings, and Directing Recording of Amended Notice of Special Tax Lien for City of Fairfield Community Facilities District No. 2012-2 (Public Safety Services, Open Space Operation, and Park Maintenance) Annexation No. 61 (LogistiCenter at Fairfield)

Mayor Price opened the public hearing. There were no requests to speak. Mayor Price closed the public hearing.

Councilmember Bertani made a motion to approve Resolution 2022 -309. Councilmember Timm seconded the motion. The motion carried unanimously.

City Clerk Rees opened the ballot and stated 56 YES votes in favor of annexation.

Councilmember Panduro made a motion to approve Resolution 2022-310. Councilmember Timm seconded the motion. The motion carried unanimously.

ADJOURNED MEETING AT 7:41 P.M. TO TUESDAY, DECEMBER 6, 2022, 6:00 P.M., COUNCIL CHAMBER.

_____________________________
City Clerk

______________________________
Mayor

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City Council Special Meeting December 6, 2022

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CITY OF FAIRFIELD

FAIRFIELD CITY COUNCIL

SPECIAL MEETING

CLOSED SESSION
TUESDAY, DECEMBER 6, 2022; 5:00 PM
CITY HALL, CITY MANAGER'S OFFICE, 1000 WEBSTER STREET, 4TH FLOOR, FAIRFIELD, CA 94533

CLOSED SESSION AGENDA

MINUTES

CALL TO ORDER
Mayor Harry T. Price called the meeting to order at 5:00 p.m.

Present in person were Councilmembers Pam Bertani, Cat Moy, Doriss Panduro, Chuck Timm, and Scott Tonnesen; Vice Mayor Rick Vaccaro, and Mayor Price.

PUBLIC COMMENT: No members of the public wished to speak.

The City Council went into closed session on Item #1 with City Attorney David Lim, and Interim City Manager David Gassaway.

The City Council then went into closed session on Item #2 with City Attorney David Lim, Assistant City Attorney Chris Dykzeul, and Interim City Manager David Gassaway.

The City Council then went into closed session on Item #3 with attorney Richard Osman, attorney Adam Ambrozy, City Attorney David Lim, and Interim City Manager David Gassaway.

CLOSED SESSION

PRESENTATIONS

1. PUBLIC EMPLOYEE PERFORMANCE EVALUATION
Title: Interim City Manager David Gassaway
Contact: David Lim, (415) 421-8484

2. CONFERENCE WITH LEGAL COUNSEL – EXISTING LITIGATION
Government Code 54956.9(d)(1)
In re: Hansaben Investments, LLC, a California Limited Liability Company, Case # 22-30258, U.S. Bankruptcy Courts, Northern District of California, San Francisco Division Contact: David Lim, (415) 421-8484

3. CONFERENCE WITH LEGAL COUNSEL— ANTICIPATED LITIGATION Government Code Section 54956.9(d)(2)-(4)
Re: Claim of defamation by Councilmember Cat Moy and City Council against Showcase LLC Contact: David Lim, (415) 421-8484
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City Council Special Meeting December 6, 2022

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The City came out of closed session. The City Attorney announced that regarding Item #1, the City Council directed City Attorney David Lim to negotiate a new permanent contract for Interim Cit y Manager David Gassaway. The City Attorney announced that regarding Item #2, the City Council authorized approval of an additional $15,000 for attorney services in the matter of the bankruptcy of Hansaben Investments, LLC, case # 22-30258 in the U.S. Bankruptcy Courts, Northern District of California, San Francisco Division. There was no report out for Item #3.

The meeting was adjourned at 6:00 p.m.
______________________________
City Attorney
________________________________
Mayor
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SETTLEMENT AGREEMENT AND RELEASE

This Settlement Agreement and Release (“Agreement”) was entered into as a settlement on December 6, 2022 between and among the City of Fairfield (“City”), on its own behalf and on behalf of City Councilmember Catherine Moy (“Moy”) (hereinafter collectively “Defendants”), and Claimant The Showcase, LLC (“Showcase” or “Claimant”). Pursuant to the settlement, the parties agree as follows:

RECITALS

A. WHEREAS, on May 4, 2021, at a City Council meeting and on May 12, 2021 at Mayor Harry Price’s birthday celebration at City Hall, Fairfield Councilmember Catherine Moy made allegedly defamatory statements about Claimant, The Showcase, LLC. Claimant contends it suffered economic damages as a result of the statements and asserts claims against the City and Moy for slander, libel per se, and commercial disparagement. The aforementioned events that transpired shall henceforth be referred to as the “Incidents”. On October 28, 2021, Claimant presented a government code tort claim (“Claim”) to the City of Fairfield describing the Incidents and seeking economic damages. The City, Moy, and Showcase thereafter commenced settlement discussions and to facilitate same, entered into multiple tolling agreements, the most recent of which tolls any applicable statute of limitations thru January 1, 2023.

B. It is the desire of the parties to this Agreement to effect a full and complete compromise, settlement and resolution of the Claim and any and all potential causes of action that could be brought by Claimant against Defendants. The parties acknowledge that all claims and causes of action (whether past, present or future) of the Claimant are disputed, including with respect to existing facts, and this settlement is not intended to be and shall not be treated as an admission of facts, liability or responsibility in any manner whatsoever. The statements herein set forth are intended as efforts to compromise pursuant to Section 1152 of the California Evidence Code.

NOW, THEREFORE, in consideration of the mutual covenants, conditions and promises contained herein, the parties agree as follows:

1. Based on this settlement. Claimant agrees it will not file a lawsuit or bring any other claims of any sort against Defendants based on the Incidents or anything contained within Claimants Claim. Upon the City’s receipt of this fully executed Settlement Agreement signed by Claimant and signed as approved to form by Plaintiff’s counsel, the City shall furnish Claimant with a letter of regret signed by its Mayor, and in the form of the letter attached to this agreement as Exhibit A. As part of this settlement, the City also agrees that it will waive its right to collect attorney’s fees from Claimant that were incurred in the matters of East of Eden North Bay LLC v.

City of Fairfield, et. al. (Solano County Superior Court docket FCS057389), and CCC Associates of Fairfield, Inc. v. City of Fairfield, et. al. (Solano County Superior Court docket FCS057154).

2. Claimant forgoes, waives, releases and relinquishes any and all claims or rights to pursue a claim or lawsuit or any other action against the Defendants before any City, County, State, Federal or other governmental agency or court concerning the matters described in Recitals A and Packet Page 24 of 812Attachment 3 Page 10 of 17

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B, and any and all claims raised or which could have been raised in connection with the Incidents or the Claim under Federal or State law, including Constitutional, tort, contract or statutory claims. a.This Settlement Agreement, waiver and release shall redound to and is for the benefit of the Defendants, including the City of Fairfield’s City Council and its elected and appointed officials (including but not limited to Councilmember Catherine Moy), boards, departments, officers, employees (past and present), agents, servants, officials, owners, successors and assigns, attorneys, insurers and all other persons affiliated with the City, including but not limited to, any other person or legal entity charged with responsibility, whether directly, or indirectly or vicariously, for the facts and circumstances mentioned in the above-mentioned Recitals A and B, inclusive, and any facts or circumstances raised by, arising from or referenced in the Incidents and/or the Claim. b.Claimant acknowledges the provisions of section 1542 of the Civil Code of the State of California, and hereby knowingly waives the benefit of such provisions on itss behalf, and understands that said section provides as follows:

A general release does not extend to claims that the creditor or releasing party does not know or suspect to exist in his or her favor at the time of executing the release and that, if known by him or her, would have materially affected his or her settlement with the debtor or released party.

3.Each party to this Settlement Agreement, and each party on whose behalf it is entered shall bear the responsibility to pay its own attorneys’ fees, experts or consultants’ fees, and costs incurred, or that have arisen from the conduct described in the Claim and in pursuing or defending against claims or potential claims contained within the Claim.

4.Claimant hereby warrants that it has not assigned, transferred, encumbered or hypothecated any claim of right or cause of action which is the subject matter of this Settlement Agreement. Claimant hereby represents that it has absolutely no knowledge that any other person or entity has assigned, transferred, encumbered or hypothecated any claim of right or cause of action which is the subject matter of this Settlement Agreement. Claimant and its attorneys are the only persons or entities responsible for payment of any loans made to Claimant by any third party or person based on the Claim and Claimant will defend, indemnify and hold harmless the City and Defendants from any person or entity’s claim(s), demand(s) or lawsuits based on said person(s) loaning money to Claimant because of Claimant and/or its attorneys’ promise to repay said loan(s) based on financial gain obtained as consideration for this Settlement Agreement.

5.Claimant hereby warrants that, except for the Claim, it has not and does not intend to file or commence any other type of legal or administrative proceeding with any person, legal entity, City, County, State or Federal governmental or administrative agency or court concerning the facts and circumstances relating to the Incidents or the Claim under state and Federal laws and Constitutions.

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6.This Settlement and Release Agreement is binding upon and shall redound to the benefit of the Defendants and their present and former agents, servants, employees, officers, owners, representatives, successors-in-interest, and assignees.

7.Claimant understands, acknowledges and agrees to the special conditions as follows:
a.Liability for all claims is disputed, and this final compromise and settlement agreement shall never be construed as an admission of liability or responsibility by the Defendants and any and all of the above-named City-related persons or entities at any time for any purpose.
b.Claimant understands, acknowledges and agrees that it is possible that other damages or claims arising from the Incidents and/or Claim not known now will develop or be discovered, or consequences or results of known injuries and damages or any other claims may develop, worsen or be discovered, and this final compromise and release is expressly intended to cover and include, and does cover and include, any past, present and future injuries and damages and any and all past, present, and future claims, future consequences or results of known or unknown injuries or damages or claims, including all rights, claims or causes of action based thereon that relate to the Incidents and/or the Claim now known or unknown to Claimant.

8.This Settlement Agreement and Release, and any rights or obligations pursuant to it, are not assignable by any party without written consent of the other parties.

9.The parties acknowledge that they each have been represented by counsel:
a.Claimant The Showcase, LLC has been represented by James Filippi of Filippi Law Firm, P.C.
b.Defendant City of Fairfield, including its City Councilmembers save and except for Councilmember Catherine Moy have been represented by Richard Osman of Bertrand, Fox, Elliot, Osman & Wenzel.
c.Defendant, Councilmember Catherine Moy has been represented by Adam Ambrozy of Lenahan, Slater, Pearse & Majernik.

Each party acknowledges that they have discussed this Agreement with their counsel, been advised of and understand its meaning, and have been advised of and understand its legal consequences. Each party freely and voluntarily enters into this Agreement and assumes the responsibility of its legal consequences.

10.This Settlement Agreement and Release may be executed in one or more digital counterparts, each of which shall be deemed an original, but all of which shall constitute one and the same Settlement Agreement and Release.

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11.This Agreement was entered into following negotiations between the attorneys for the Claimant and Defendants and the Settlement Agreement and Release shall be construed and interpreted in accordance with the laws of the State of California.

12.A faxed, copied and/or other electronic representation/impression of Claimant’s and its attorney’s, and the Defendants’ original signatures on this original document or on a faxed, copied, and/or other electronic representation/impression of it shall have the same legal force and effect as any of the original signatures and the original document.

13.If any term of this Agreement is, in whole or in part, held to be illegal or unenforceable to any any exent under any enactment or rule of law, that term or part shall to that exent be deemed not to form part of this Agreement and the enforceability of the remainder of this Agreement shall not be affected.

IN WITNESS WHEREOF, the parties hereto enter into this Settlement Agreement and Release. Each person signing this Agreement represents and warrants that he or she has been duly authorized to enter into this Agreement by the person or entity on whose behalf the person is signing.

PLEASE READ CAREFULLY. THIS SETTLEMENT AGREEMENT AND GENERAL RELEASE INCLUDES A RELEASE OF ALL KNOWN AND UNKNOWN CLAIMS.

DATED __________________, 2022 ___________________________________ The Showcase, LLC.

By: ____________________________
It’s: ____________________________
[No further text on this page]
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ATTORNEY CERTIFICATION
I, James Filippi, do hereby certify that I am the attorney of record for the above-named settling Claimant and that my client, to the best of my knowledge, is capable of understanding the contents of this Agreement, each provision of which I have fully explained to it and I am satisfied that my client understood, agreed to and accepted these tenns.

DATED : 2022 _______, James Filippi

ON BEHALF OF DEFENDANTS
DATED 2022 -------�
DATED 2022 ________,
DA TED------'-) _Q._J_,-=-<( _ ___.,, 2022I
DATED 2022 ________,

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David Gassaway
Ci ty Manager
Richard W. Osman
Attorneys for Defendants, save and
Except for Councilmember
Catherine Moy
Adam Ambrozy
Attorney for Defendant
Councilmember Catherine Moy
December 19
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Exhibit A
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December 12, 2022
The Showcase LLC
101 Grobric Court
Fairfield, CA 94534
RE: Showcase Presentation of Tort Claim And City of Fairfield Letter of Regret To The Showcase LLC:

The City of Fairfield regrets certain statements made by City of Fairfield Councilmember Catherine Moy about The Showcase LLC (“Showcase”) and its ownership team, Victor Nguyen, Brian Wong, Daniel Sharp, and Ivan Campbell during public hearings and in conversations at City Hall.

Ms. Moy acted alone. Her statements about Showcase were based on incomplete information.

Following these statements, the City Council received both physical and oral evidence, and upon consideration of this supplementary information chose to grant Showcase a cannabis retail permit.

Showcase was one of four successful applicants out of fourteen highly qualified competitors.

This matter now is fully resolved and the City looks forward to having Showcase as a valued member of the Fairfield business community.

Sincerely,
Harry T. Price
Mayor, City of Fairfield
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MAYOR’S OFFICE

December 13, 2022

The Showcase LLC
101 Grobric Court
Fairfield, CA 94534

RE: Showcase Presentation of Tort Claim and City of Fairfield Letter of Regret

To The Showcase LLC:

Ms. Moy acted alone. Her statements about Showcase were based on incomplete information.

Following these statements, the City Council received both physical and oral evidence and, upon consideration of this supplementary information, chose to grant Showcase a cannabis retail permit. Showcase was one of four successful applicants out of fourteen highly qualified competitors.

This matter is now fully resolved, and the City looks forward to having Showcase as a valued member of the Fairfield business community.

Sincerely,

Harry T. Price
Mayor

HTP/kb
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CITY OF FAIRFIELD

FAIRFIELD CITY COUNCIL

REGULAR CONCURRENT MEETING
TUESDAY, DECEMBER 6, 2022; 6:00 PM
COUNCIL CHAMBER, 1000 WEBSTER STREET,
FAIRFIELD, CA 94533 OR VIA ZOOM

MINUTES

CALL TO ORDER

Mayor Harry T. Price called the meeting to order at 6:06 p.m.

ROLL CALL

On roll call were Councilmember Pam Bertani, Mayor-Elect Cat Moy, Councilmembers Panduro, Chuck Timm, Scott Tonnesen, Vice Mayor Rick Vaccaro, and Mayor Harry Price.

INVOCATION - Worship Pastor Christian Bravo of Liberty Church gave an invocation.

PLEDGE OF ALLEGIANCE

Mayor-Elect Cat Moy led the Pledge of Allegiance.

COUNCIL REPORTS

Vice Mayor Vaccaro reminded residents to be safe and enjoy the holidays.

Councilmember Bertani reported that the Fairfield Clergy Action Network (CAN) Thanksgiving dinner was a success. She added that warm meals, clothing, and hygiene kits were handed out to those in need. Councilmember Bertani added that the Fairfield CAN is also planning for an E aster meal next spring.

Mayor-Elect Moy thanked all the churches that donated over 1,000 turkeys to those in need. She noted that the New Councilmember Reception would take place on Tuesday, December 20, 2022, at 5 pm, located at the City Hall lobby, and the Swearing-In Ceremony will be at 6 pm, located at the Council Chamber. As Mayor-Elect, Councilmember Moy was chosen along with 25 other new mayors to attend classes online at Harvard to receive leadership training as she enters her new mayor role. She also requested to close the meeting on behalf of Mark Corioso, who recently passed away.

Councilmember Panduro congratulated all the winners at the Spirit of Solano Awards and thanked all the local businesses. She added that the Small Business Saturday was a great success, with over 2,000 people attending. Councilmember Panduro also thanked Poet Laureate Suzanne Bruce for sharing her poem at the tree lighting and even requested her to read the poem in Spanish. She added that another poem would be read at the Menorah lighting on December 21, 2022. Councilmember Panduro met with some residents in her district last night who had concerns about a new housing project. She thanked David Gassaway and LaTan Jones for addressing those concerns.

Councilmember Timm agreed with Councilmember Panduro regarding the Spirit of Solano awards. He agreed that both big and small businesses are the backbone of the community. He also wished everyone a Merry Christmas.

Councilmember Tonnesen thanked the Public Works, Parks & Recreation Departments, and Packet Page 32 of 812Attachment 4 Page 1 of 7

volunteers for having a successful tree lighting and Shop Small Saturday event.

Mayor Price reported that the tree lighting ceremony was such a joy. So many people and families were in attendance, and he thanked all the businesses that remained open during the event. He added that Fairfield is made up of a diverse community. On Saturday, Mayor Price will be riding on a fire truck with Santa Claus to have breakfast and hand out gifts to underpri vileged children.

CITY MANAGER REPORT

Interim City Manager David Gassaway reported that there are corrections for items 21 and 26 , and they are printed for the councilmembers on the dais. He recommended pulling item 21 out of the Consent Calendar to be presented in front of item 26 in New Business.

CITY ATTORNEY REPORT

City Attorney David Lim reported having two items to report out of the closed session. The first item is Public Employee Performance Evaluation for Interim City Manager David Gassaway . The council has recommended that Mr. Lim begin negotiations with Mr. Gassaway for a permanent contract to be placed into closed session and back into open session for approval of the possible contract on December 20. The second item is Conference with Legal Council on an Existing Litigation in the matter of Hansaban Investments LLC, a California limited liability company case # 22-30258 in the U.S.

Bankruptcy Courts, Northern District of California, San Francisco Division. The City Council authorized approval of an additional $15,000 for attorney services on this matter.

CITY CLERK REPORT

Deputy City Clerk Beavers reported that the City is seeking applicants for two seats on the Golf Advisory board – the deadline to apply is January 5. She also added that several seats on the Youth Commission are available and encouraged people to apply.

PRESENTATIONS

1. Veterans Day Parade Awards Presented by Director of Parks & Recreation Kristina Kaunzinger & Andrea Azurdia

List of winners:

Band $150 – Armijo Royal Regiment Band
Commercial $150 – American Red Cross
Equestrian $150 – Travis Equestrian Center
Float $150 – B Sharp Academy
Military $150 – Fairfield High School JROTC
Novelty $150 – Rowland Freedom Center
Vehicle $150 – Golden Hills Mustang Club
Walking $150 - Girl Scouts of Northern California
Sweepstakes $250 – Rancho El Centenario

PUBLIC COMMENTS

Johanna Smith spoke about the large amounts of garbage left behind the Dollar Tree by the homeless.

June Johnson recognized Corey Beavers for taking care of the leaves in her neighborhood. Ms. Johnson also thanked everyone that was involved in the tree lighting. She also wanted everyone involved with the landscaping issues to get it resolved.

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Wayne Eddy spoke about rezoning a downtown property and homeless and graffiti issues.

CONVENED MEETING OF THE HOUSING AUTHORITY AT 6:31 P.M.

ROLL CALL

On roll call were Commissioners Bertani, Moy, Panduro, Timm, Tonnesen, Vice Chair Vaccaro, and Chair Price.

HOUSING AUTHORITY CONSENT CALENDAR

2. Resolution HA2022-10 of the Fairfield Housing Authority Approving, Receiving, and Filing the Housing Successor Annual Report and Directing Staff to Publish the Report on the City Website and Transmit the Report to the State Department of Housing and Community Development Pursuant to California Health and Safety Code Section 34176.1

Councilmember Chuck Timm made a motion to approve the Housing Authority Consent Calendar.

Mayor-Elect Cat Moy seconded the motion. The motion carried unanimously.

HOUSING AUTHORITY PUBLIC HEARINGS

3. Public Hearing; and Resolution HA2022-11 of the Fairfield Housing Authority Approving the Update of the Administrative Plan for the Fairfield Housing Choice Voucher Program for the Calendar Year 2023

Councilmember Tonnesen asked about how many vacancies there are, and Tanya Tran stated that there is currently one vacancy at Sunset Creek and a little over 100 on the waiting list at Sunset Creek.

Councilmember Rick Vaccaro made a motion to approve Resolution HA2022-11. Councilmember Pam Bertani seconded the motion. The motion carried unanimously.

RECONVENED MEETING OF THE CITY COUNCIL AT 6:46 P.M.

CONSENT CALENDAR

4. Approval of Meeting Minutes from November 2022

5. Resolution 2022-311 of the City Council of the City of Fairfield Reconsidering and Authorizing Public Meetings to be Held Via Teleconferencing Pursuant to Government Code Section 54953(e) and Making Findings and Determinations Regarding the Same

6. Resolution 2022-312 of the City Council of the City of Fairfield Setting a Hearing for January 17, 2023, Re: Appeal of Revocation of Business License #07000966 for Smoke Shop N More LLC Pursuant to Chapter 10 of the Fairfield Municipal Code

7. Resolution 2022-313 of the City Council of the City of Fairfield Approving Application(s) for Specified Grant Funds from the Budget Act of 2022, Item 3790-101-0001 as Amended by AB 179, Section 19.56 Item #(9)(b)(1) (H) $1,500,000 to the City of Fairfield for Park Upgrades: Linear Park and Allan Witt Park

8. Resolution 2022-314 of the City Council of the City of Fairfield Approving a Consultant Services Agreement by and Between the City of Fairfield and Solano Economic Development Corporation Packet Page 34 of 812Attachment 4 Page 3 of 7

to Provide Staffing and Resource Support to the Travis Community Consortium

9. Resolution 2022-315 of the City Council of the City of Fairfield Approving a Memorandum of Understanding Between the Community Action Partnership of Solano Joint Powers Authority (CAP Solano JPA) and the City of Fairfield to Provide Dedicated Administrative Staff to CAP Solano JPA

10. Resolution 2022-316 of the City Council of the City of Fairfield Approving a Professional Services Agreement and Purchase of a New VoIP System Through Reseller Maverick Networks, Inc.

11. Resolution 2022-317 of the City Council of the City of Fairfield Accepting $5,315,000 of American Rescue Plan Act (ARPA) Funds from Solano County for the Development of Three Affordable Housing Projects, and Authorizing the City Manager to Execute Agreements with the County and Housing Development Partners for the ARPA Funds

12. Resolution 2022-318 of the City of Council of the City of Fairfield Adopting the Fairfield and Suisun Transit Fiscal Year 2023-2028 Short Range Transit Plan

13. Resolution 2022-319 of the City Council of the City of Fairfield Authorizing the Director of Public Works to Approve Conveyance of Easements to Various Utility Providers Associated with the Installation of Electric Vehicle Charging Systems on City-Owned Lands

14. Resolution 2022-320 of the City Council of the City of Fairfield Authorizing the City Manager to Enter into an Agreement between the City of Fairfield and the State of California for Sharing Cost of State Highway Electrical Facilities

15. Resolution 2022-321 of the City Council of the City of Fairfield Authorizing the City Manager to Execute a Professional Services Agreement Between the City of Fairfield and Wallace Roberts & Todd, LLC (WRT) for Consultant Services to Prepare a Parks, Recreation, & Open Space Master Plan and Authorizing an Update to the Fiscal Year 2022-2023 Budget

16. Resolution 2022-322 of the City Council of the City of Fairfield Accepting a Portion of Nelson Road into the City-Maintained Street System

17. Resolution 2022-323 of the City Council of the City of Fairfield Authorizing the City Manager to Execute a Professional Services Agreement and Non-Disclosure Agreement with West Yost Associates for the Provision of a Water Utility Master Plan and Rates Stu dy

18. Resolution 2022-324 of the City Council of the City of Fairfield Authorizing Execution of the Improvement Agreement for the Canon Station – Planning Area 4 – Linear Park Trail Segment 3A

19. Resolution 2022-325 of the City Council of the City of Fairfield Approving the Final Map and Authorizing Execution of the Subdivision Improvement Agreement for the Canon Station Planning Area 5 – Neighborhood R, L, K-1 Subdivision

20. Resolution 2022-326 of the City Council of the City of Fairfield Establishing the Fairfield Landscape Oversight Committee and Setting Forth Guidelines and Duties of the Committee

21. Resolution 2022-327 of the City Council of the City of Fairfield Approving a Contractor Service Agreement with TerraCare Associates for Landscape Maintenance Services and Authorizing an Update to the Fiscal Year 2022-2023 Budget for the Landscaping and Lighting Maintenance District No. 14 – Woodlake; and

Resolution 2022-328 of the City Council of the City of Fairfield Approving a Contractor Service Packet Page 35 of 812Attachment 4 Page 4 of 7

Agreement with TerraCare Associates for Landscape Maintenance Services and Authorizing an Update to the Fiscal Year 2022-2023 Budget for the Landscaping and Lighting Maintenance District No. 17 – Chadbourne-Beck-Cordelia

22. Resolution 2022-329 of the City Council of the City of Fairfield Approving an Amendment to Resolution 2008-23 Revising the Fairfield Youth Commission

23. Resolution 2022-330 of the City Council of the City of Fairfield Approving the Sixth Amendment to Lease and Management Agreement with Sports Restaurant Incorporated (SRI) for Restaurant Operations

24. Resolution 2022-331 of the City Council of the City of Fairfield Approving the Eighth Amendment to the Management Agreement with Kember Sports Management, Inc. for the Operation and Maintenance of Golf Courses and Facilities

Item 20 is pulled from Consent because there is a public speaker for that item. Rick Johnson spoke on this item and is requesting management oversight for the Landscape Oversight Committee. Ryan Panganiban presented on item 20. Item 20 is tabled and brought back in a future meeting.

Councilmember Bertani recommended using attachment C which Mr. Johnson provided. Mr. Johnson recommended having a representative from every LLMD where there are over 19 districts. Still, Mayor- Elect Moy does not recommend that because large committees are usually not very efficient when business is being conducted.

Councilmember Bertani made a motion to table Item 20, revise the powers and duties of the Landscape Oversight Committee, and including attachment C. Mayor-Elect Moy seconded the motion. The motion carried unanimously.

Item 22 was pulled from Consent because there is a public speaker for this item. Nadia Smith spoke on this item. Vice Mayor Vaccaro made a motion to approve the Resolution 2022-329. Mayor-Elect Moy seconded the motion. The motion carried unanimously.

Councilmember Timm made a motion to approve the Consent Calendar as presented. Councilmember Panduro seconded the motion. The motion carried unanimously.

NEW BUSINESS

25. Streetscape Options to Enhance the Public Realm on Texas Street in Downtown Fairfield

There was one public speaker and Cornelius Wood spoke on this item. Councilmember Timm is in favor of option 2 and Councilmember Tonnesen would like to see a hybrid of option 2 and 3.

Item 21 is pulled out of the Consent Calendar to be presented in front of item 26 in New Business.

Resolution 2022-328 of the City Council of the City of Fairfield Approving a Contractor Service Agreement with TerraCare Associates for Landscape Maintenance Services and Authorizing an Update to the Fiscal Year 2022-2023 Budget for the Landscaping and Lighting Maintenance District No. 17 – Chadbourne-Beck-Cordelia

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Paul Kaushal presented on item 21 and noted that there is a 1% contingency change where all the amounts are increased by 1%.

Vice Mayor Vaccaro made a motion to approve the Resolution 2022-327 and 2022-328.

Councilmember Timm seconded the motion. The motion carried unanimously.

26. Resolution 2022-332 of the City Council of the City of Fairfield Approving a Contractor Service Agreement with TerraCare Associates for Landscape Maintenance Services in the Landscaping and Lighting Maintenance District No. 7 – Rolling Hills; and

Resolution 2022-333 of the City Council of the City of Fairfield Approving a Contractor Service Agreement with TerraCare Associates for Landscape Maintenance Services in the Landscaping and Lighting Maintenance District No. 11 – Paradise Valley North; and

Resolution 2022-334 of the City Council of the City of Fairfield Approving a Contractor Service Agreement with TerraCare Associates for Landscape Maintenance Services in the Landscaping and Lighting Maintenance District No. 13 – North Cordelia

Paul Kaushal presented on item 26 and noted that like item 21, there is a 1% contingency change where all the amounts are increased by 1%.

Councilmember Bertani made a motion to approve Resolution 2022-332, 2022-333, and 2022-334.

Councilmember Timm seconded the motion. The motion carried unanimously.

PUBLIC HEARINGS

27. Public hearing; and Resolution 2022-335 of the City Council of the City of Fairfield Annexing Territory (Valley Strong Credit Union) to Community Facilities District No. 2012-2 (Public Safety Services, Open Space Operation, and Park Maintenance) as Annexation No. 60, Authorizing the Levy of a Special Tax Within the Annexed Territory, Submitting the Levy of a Special Tax to the Qualified Electors Thereof, and Rescinding Resolution No. 2022285; and

Resolution 2022-336 of the City Council of the City of Fairfield Declaring the Results of a Special Annexation Election in Territory Annexed to Community Facilities District No. 2012-2 (Public Safety Services, Open Space Operation, and Park Maintenance), Determining the Validity of Prior Proceedings, and Directing Recording of Amended Notice of Special Tax Lien f or City of Fairfield Community Facilities District No. 2012-2 (Public Safety Services, Open Space Operation, and Park Maintenance) Annexation No. 60 (Valley Strong Credit Union)

Councilmember Bertani made a motion to approve Resolution 2022-335. Mayor-Elect Moy seconded the motion. The motion carried unanimously.

Deputy City Clerk Beavers opened the ballot and read that it was two yes votes, in favor of annexation.

Vice Mayor Vaccaro made a motion to approve Resolution 2022-336. Councilmember Panduro seconded the motion. The motion carried unanimously.

The City Council meeting was adjourned in honor of Mark Corioso.

ADJOURNED MEETING AT 8:00 P.M. TO TUESDAY, DECEMBER 20, 2022, 6:00 P.M., COUNCIL CHAMBER.

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____________________________________
City Clerk

_______________________________
Mayor
Packet Page 38 of 812Attachment 4 Page 7 of 7

City Council Closed Session December 20, 2022

Page 1 ends

CITY OF FAIRFIELD

FAIRFIELD CITY COUNCIL

SPECIAL MEETING

CLOSED SESSION
TUESDAY, DECEMBER 20, 2022; 4:30 PM
CITY HALL, CITY MANAGER'S OFFICE, 1000 WEBSTER STREET, 4TH FLOOR, FAIRFIELD, CA 94533

CLOSED SESSION AGENDA

MINUTES

CALL TO ORDER

Acting Mayor Rick Vaccaro called the meeting to order at 4:30 p.m.

Present in person were Councilmembers Pam Bertani, Cat Moy, Doriss Panduro, Chuck Timm, Scott Tonnesen, and Acting Mayor Rick Vaccaro.

PUBLIC COMMENT: No members of the public wished to speak.

The City Council went into a closed session on Item #1 with City Attorney David Lim and Interim City Manager David Gassaway.

CLOSED SESSION

PRESENTATIONS

1. PUBLIC EMPLOYEE APPOINTMENT: DAVID GASSAWAY
Government Code 54957
Discuss Hiring and Appointment of Full-Time City Manager

Contact: David Lim, (415) 421-8484

The City came out of a closed session. The City Attorney announced that regarding Item #1, the City Council voted 5-1 (Tonnesen - No) to approve a contract with Mr. David Gassaway to assume the duties of City Manager with a salary of $285,000 and other benefits outlined in the agreement made part of the public record as Agenda Item #5 for the regular meeting of December 20, 2022.

The meeting was adjourned at 4:48 p.m.

______________________________
City Attorney
________________________________
Mayor
Packet Page 39 of 812Attachment 5 Page 1 of 1

CITY OF FAIRFIELD

FAIRFIELD CITY COUNCIL

REGULAR MEETING
TUESDAY, DECEMBER 20, 2022; 6:00 PM
COUNCIL CHAMBER, 1000 WEBSTER STREET, FAIRFIELD,
CA 94533 OR VIA ZOOM

MINUTES

CALL TO ORDER

Vice Mayor Rick Vaccaro called the meeting to order at 6:00 p.m.

ROLL CALL

On roll call were Councilmembers Pam Bertani, Doriss Panduro, Chuck Timm, Scott Tonnesen, Vice Mayor Vaccaro, and Mayor-Elect Cat Moy.

INVOCATION

Worship Pastor Jeff Hood of First Baptist Church gave an invocation. He prayed for the family of Mayor Harry T. Price, who passed away unexpectedly on December 16, 2022.

PLEDGE OF ALLEGIANCE

Councilmember Timm led the Pledge of Allegiance.

PRESENTATIONS

1. "Infinite Gratitude" Poem was presented by Poet Laureate Suzanne Bruce.

2. Proclamation thanking Chuck Timm for his many years of service to Fairfield, both as a policeman and a councilmember, presented by Councilmember Bertani.

3. Proclamation thanking Harry Price for his service to Fairfield presented by Vice Mayor Rick Vaccaro to the late mayor’s daughter, Pam Winaker, and family.

Sr. District Representative Lois Cross of U.S. Congressman John Garamendi’s Office presented a proclamation honoring Mayor Price, and she presented a proclamation recognizing Chuck Timm.

Police Chief Dan Marshall presented a special plaque honoring Mayor Price and a plaque to Chuck Timm.

COUNCIL REPORTS

Mayor Harry T. Price had four days left of his mayoral term. Each councilmember and the city clerk shared their memories of him and expressed their deep sadness at his passing.

Councilmember Bertani introduced her daughter, Tyler Bertani, who sang the Lord’s Prayer beautifully in memory of Mayor Price.

City Attorney David Lim stated that in the closed session, Interim City Manager David Gassaway’s contract as City Manager, was discussed and approved for consideration by the Council and listed as Item #5 on the agenda . He offered his condolences to the family of Mayor Price and said that Mayor Price had welcomed him with open arms when he started with the City of Fairfield. He stated that the Packet Page 40 of 812Attachment 6 Page 1 of 4

city had lost a true leader.

Interim City Manager David Gassaway also shared his deepest condolences. He stated that Harry was a true servant leader, one who gives freely of himself in service of others and enjoys helping people to succeed. He said he was a remarkable man and was so happy he got to know him.

CONSENT CALENDAR

4. Resolution 2022-337 of the City Council of the City of Fairfield declaring the Results of Votes Cast and Candidates Elected at the November 8, 2022, General Municipal Election .

Councilmember Timm made a motion to approve the Consent Calendar as presented. Councilmember Bertani seconded the motion. The motion carried unanimously 6-0.

NEW BUSINESS

5. City Attorney David Lim recommended approving Resolution 2022-338 of the City Council of the City of Fairfield Approving the City Manager Employment Agreement Between the City of Fairfield and David Gassaway and Amending the Salary Schedule.

Councilmember Timm made a motion to approve Resolution 2022-338. Councilmember Bertani seconded the motion. The motion carried unanimously 6-0.

ADMINISTRATION OF OATH OF OFFICE TO NEWLY ELECTED MAYOR AND COUNCILMEMBERS

Assemblymember Lori Wilson administered the Oath of Office to Councilmember K. Patrice Williams.

Joe Martinez administered the Oath of Office to Councilmember Doug Carr.

Alonzo Allen administered the Oath of Office to Councilmember Doriss Panduro.

Solano County Supervisor Erin Hannigan administered the Oath of Office to Mayor Catherine "Cat" Moy.

ADJOURNED FOR RECESS AT 7:00 P.M.

RECONVENED MEETING OF CITY COUNCIL AT 7:21 P.M.

ROLL CALL - NEWLY ELECTED MAYOR AND COUNCILMEMBERS

On roll call were Councilmembers Doug Carr, Doriss Panduro, Scott Tonnesen, Rick Vaccaro, and K.

Patrice Williams, Vice Mayor Pam Bertani, and Mayor Cat Moy.

Selection of Vice-Mayor

Mayor Moy nominated Councilmember Bertani for Vice Mayor. Vice Mayor Vaccaro made a motion to appoint Councilmember Bertani as Vice Mayor. Councilmember Tonnesen s econded the motion. The motion carried unanimously 7-0.

COUNCIL REPORTS

Councilmember Williams stated it was a 20-year path to her becoming a councilmember. She shared that she attended law school not to become a lawyer but to govern well. She thanked her husband, Earl, and her family, friends, and constituents. She also thanked her mentor, Peggy Chohen-Thompson.

Packet Page 41 of 812Attachment 6 Page 2 of 4

Councilmembers Tonnesen and Vaccaro congratulated the new councilmembers and said they looked forward to working with them.

Councilmember Panduro also congratulated her new colleagues and Mayor Moy . She thanked the Police Department (PD) for their “Santa Operation” and shared how fun it was to see the excited children in all the various neighborhoods. She also thanked PD for having a Spanish-speaking Santa, too.

Vice Mayor Bertani congratulated her new colleagues. She said, “It’s a new day and a new time in Fairfield.” She stated there was a lot of hard work to do and that Council was “the getting it done crew!”

Councilmember Carr thanked his constituents for their support. He said he looked forward to “rolling up our sleeves!”

Mayor Moy wished everyone a Happy Hanukkah and invited the community to the 2nd Annual Menorah Lighting downtown on December 21. Next, she spoke about the fact that there was much work to be done and that she and the City Council would work tirelessly to get it done. She said she would like to hear from residents.

CITY MANAGER REPORT

City Manager David Gassaway congratulated the new councilmembers.

CITY ATTORNEY REPORT

City Attorney David Lim had nothing to report. He congratulated the newly elected officials .

CITY CLERK REPORT

City Clerk Karen Rees congratulated the newly elected officials. She shared that Mayor Price visited her in her office the day before he died and that he was a wonderful human being who would be missed.

PUBLIC COMMENTS

Leo Callejas congratulated the elected officials and shared special memories of our late Mayor Price.

Anand Patel shared memories of the late Mayor Price. He thanked staff for a wonderful tree-lighting event in downtown Fairfield on December 2.

Jacob Francisco and the Fairfield Youth Commission members also shared memories of Mayor Price and congratulated the newly elected councilmembers.

CONSENT CALENDAR

6. Resolution 2022-339 of the City Council of the City of Fairfield Reconsidering and Authorizing Public Meetings to be Held Via Teleconferencing Pursuant to Government Code Section 54953(e) and Making Findings and Determinations Regarding the Same

7. Resolution 2022-340 of the City Council of the City of Fairfield Approving the Communications Facility Ground Lease Agreement Between the City of Fairfield and DISH Wireless LLC for a New Cellular Equipment Shelter Located off of Poppy Hills Court, Fairfield, more Commonly Known as APN 0167-100-160
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8. Resolution 2022-341 of the City Council of the City of Fairfield A pproving the Second Amendment to Lease Agreement Between the City of Fairfield and the Solano Economic Development Corporation

Councilmember Vaccaro made a motion to approve the Consent Calendar as presented. Vice Mayor Bertani seconded the motion. The motion carried unanimously 7-0.

PUBLIC HEARINGS

9. Senior Planner Jonathan Atkinson recommended to Council that it open the Public Hearing; and approve Resolution 2022-342 of the City Council of the City of Fairfield Adopting a Mitigated Negative Declaration (ER2021-039) for the Sunset Avenue Apartments Project Involving 130 Apartments on Approximately 8.71-Acres at the Southeast Corner of Sunset Avenue and East Tabor Avenue (APNs:
0037030200; 0037030210; 0037060480); Finding the Proposed Annexation (ANX2021-002) Of ±4.72-Acres Located on Sunset Avenue (APNs: 0037-060-480 and 0037- 060-490) is Consistent With the City’s General Plan and Municipal Service Review; and Requesting the Solano Local Agency Formation Commission (LAFCO) to Initiate Proceedings for the Reorganization of Territory; and

First Reading and Ordinance 2022-17 of the City Council of the City of Fairfield Amending Chapter 25, Article I, Section 25.12.3 of the Fairfield City Code, also Known as the Zoning Map, Rezoning One Parcel (APN: 0037-060-480) on Sunset Avenue from Residential, Low Medium Density (RLM) District to Residential, Medium Density (RM) District.

Mayor Moy opened the public hearing. Bryan Lynch and Brent Little spoke on Item 9. The Council asked questions to both speakers, and then Mayor Moy closed the public hearing.

Vice Mayor Bertani made a motion to approve Resolution 2022-342. Councilmember Panduro seconded the motion. The motion carried unanimously 7-0.

Vice Mayor Bertani made a motion to waive full reading, read by title only, and introduce Ordinance 2022-17 for the first reading. Councilmember Vaccaro seconded the motion. The motion carried unanimously 7-0.

THE MEETING WAS ADJOURNED AT 8:12 P.M. TO TUESDAY, JANUARY 17, 2023, 6:00 P.M., COUNCIL CHAMBER.

____________________________________
City Clerk

_______________________________
Mayor

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Agenda Item No: 5.

AGENDA REPORT
DATE:January 17, 2023
TO:Mayor and City Council
FROM:David Gassaway, City Manager
SUBJECT:Minute Action Approving Mayor's Appointments to the FairfieldSuisun Sewer District Board for 2023
RECOMMENDED ACTION
Approve mayor's appointment recommendation.

STATEMENT OF ISSUE
Each year the mayor makes recommends appointment of councilmembers to serve on the Fairfield Suisun Sewer District Board. The City Council must approve with the recommendations by minute action.

DISCUSSION
For calendar year 2023, the mayor is recommends Mayor Cat Moy, and Councilmembers Doug Carr, Doriss Panduro, Scott Tonnesen, and Rick Vaccaro to serve on the FairfieldSuisun Sewer District Board, and Councilmember K. Patrice Williams and Vice Mayor Pam Bertani will serve as the alternates.

FINANCIAL IMPACT
N/A
PUBLIC CONTACT/ADVISORY BODY RECOMMENDATION
N/A
ALTERNATIVE ACTION
The council may choose to discuss other alternative appointments to the FairfieldSuisun Sewer District Board.

STAFF CONTACT
Esther Beavers, Deputy City Clerk
(707) 4287402
Packet Page 44 of 812

Agenda Item No: 5.AGENDA REPORTDATE:January 17, 2023 TO:Mayor and City CouncilFROM:David Gassaway, City ManagerSUBJECT:Minute Action Approving Mayor's Appointments to the FairfieldSuisun Sewer DistrictBoard for 2023RECOMMENDED ACTIONApprove mayor's appointment recommendation.STATEMENT OF ISSUEEach year the mayor makes recommends appointment of councilmembers to serve on the FairfieldSuisun Sewer District Board. The City Council must approve with the recommendations by minuteaction.DISCUSSIONFor calendar year 2023, the mayor is recommends Mayor Cat Moy, and Councilmembers Doug Carr,Doriss Panduro, Scott Tonnesen, and Rick Vaccaro to serve on the FairfieldSuisun Sewer DistrictBoard, and Councilmember K. Patrice Williams and Vice Mayor Pam Bertani will serve as thealternates.FINANCIAL IMPACTN/APUBLIC CONTACT/ADVISORY BODY RECOMMENDATIONN/AALTERNATIVE ACTIONThe council may choose to discuss other alternative appointments to the FairfieldSuisun Sewer DistrictBoard.STAFF CONTACT Esther Beavers, Deputy City Clerk
(707) 4287402
[email protected]
COORDINATED WITH
N/A
REVIEWERS:

Reviewer Action Date
Beavers, Esther Approved 1/4/2023 11:32 AM
Packet Page 45 of 812

Agenda Item No: 6.

AGENDA REPORT
DATE:January 17, 2023
TO:Mayor and City Council
FROM:David Gassaway, City Manager
SUBJECT:Resolution 202301 of the City Council of the City of Fairfield Reconsidering and Authorizing Public Meetings to be Held Via Teleconferencing Pursuant to Government Code Section 54953(e) and Making Findings and Determinations Regarding the Same RECOMMENDED ACTION
Adopt resolution.

STATEMENT OF ISSUE
Government Code 54953(e) is new legislation that amends the Brown Act to allow local agencies to meet remotely during declared emergencies under certain conditions. The code requires that the City Council reconsider and reauthorize these provisions every 30 days following initial authorization.

DISCUSSION
On October 5, 2021, the council adopted provisions of Assembly Bill (AB) 361, urgency legislation that amends the Brown Act to allow local agencies to meet remotely during declared emergencies under certain conditions. AB 361 authorizes local agencies to continue meeting remotely without following the Brown Act’s standard teleconferencing provisions, including the requirement that meetings be conducted in physical locations if the meeting is held during a state of emergency proclaimed by the Governor and either of the following applies:

1. State or local officials have imposed or recommended measures to promote social distancing; or

2. The agency has already determined whether, as a result of the emergency, meeting in person would present imminent risks to the health or safety of the attendee.

Council has utilized teleconferencing options throughout the pandemic, including remote appearances by Councilmembers and public comments from citizens via Zoom, email, or teleconference.

AB requires the council to reconsider the circumstances of the state of emergency every 30 days following the adoption of the law and make specific findings that either of the following cases exists:

1. The state of emergency continues to directly impact the ability of the members to meet in person Packet Page 46 of 812

Agenda Item No: 6.AGENDA REPORTDATE:January 17, 2023 TO:Mayor and City CouncilFROM:David Gassaway, City ManagerSUBJECT:Resolution 202301 of the City Council of the City of Fairfield Reconsidering andAuthorizing Public Meetings to be Held Via Teleconferencing Pursuant to GovernmentCode Section 54953(e) and Making Findings and Determinations Regarding the SameRECOMMENDED ACTIONAdopt resolution.STATEMENT OF ISSUEGovernment Code 54953(e) is new legislation that amends the Brown Act to allow local agencies tomeet remotely during declared emergencies under certain conditions. The code requires that the CityCouncil reconsider and reauthorize these provisions every 30 days following initial authorization.DISCUSSIONOn October 5, 2021, the council adopted provisions of Assembly Bill (AB) 361, urgency legislation thatamends the Brown Act to allow local agencies to meet remotely during declared emergencies undercertain conditions. AB 361 authorizes local agencies to continue meeting remotely without following theBrown Act’s standard teleconferencing provisions, including the requirement that meetings beconducted in physical locations if the meeting is held during a state of emergency proclaimed by theGovernor and either of the following applies:1. State or local officials have imposed or recommended measures to promote social distancing; or2. The agency has already determined whether, as a result of the emergency, meeting in personwould present imminent risks to the health or safety of the attendee.Council has utilized teleconferencing options throughout the pandemic, including remote appearancesby Councilmembers and public comments from citizens via Zoom, email, or teleconference.AB requires the council to reconsider the circumstances of the state of emergency every 30 days following the adoption of the law and make specific findings that either of the following cases exists:

1. The state of emergency continues to directly impact the ability of the members to meet in person safely; or

2. State or local officials continue to impose or recommend measures to promote social distancing.

FINANCIAL IMPACT
There is little to no fiscal impact by this action. City staff is already utilizing many of the procedures for teleconferencing in recent council meetings and other meetings of the legislative bodies.

PUBLIC CONTACT/ADVISORY BODY RECOMMENDATION
None.

ALTERNATIVE ACTION
The council may choose not to reauthorize these procedures, in which case they would no longer be able to teleconference into council meetings without meeting the notice requirements for teleconferencing that existed before the State of Emergency. Public comment via remote access would also be curtailed at council meetings.

STAFF CONTACT
Karen Rees, City Clerk
(707) 4287767
[email protected]
COORDINATED WITH
City Attorney's Office
ATTACHMENTS:

Description
Proposed Resolution
REVIEWERS:

Reviewer Action Date
Beavers, Esther Approved 12/28/2022 11:54 AM
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CITY OF FAIRFIELD

RESOLUTION NO. 2023-01

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF FAIRFIELD RECONSIDERING AND

AUTHORIZING PUBLIC MEETINGS TO BE HELD VIA TELECONFERENCING PURSUANT TO GOVERNMENT CODE SECTION 54953(E) AND MAKING FINDINGS AND DETERMINATIONS

REGARDING THE SAME

WHEREAS, the Fairfield City Council (the City Council) is committed to public access and participation in its meetings while balancing the need to conduct public meetings in a manner that reduces the likelihood of exposure to COVID-19; and

WHEREAS, all meetings of the City Council are open and public, as required by the Ralph M.

Brown Act (Cal. Gov. Code 54950 – 54963), so that any member of the public may attend, participate, and watch the City Council conduct its business; and

WHEREAS, pursuant to Assembly Bill 361, signed by Governor Newsom and effective on September 16, 2021, legislative bodies of local agencies may hold public meetings via teleconferencing pursuant to Government Code Section 54953(e), without complying with the requirements of Government Code Section 54953(b)(3), if the legislative body complies with certain enumerated requirements in any of the following circumstances:

1. The legislative body holds a meeting during a proclaimed state of emergency, and state or local officials have imposed or recommended measures to promote social distancing.

2. The legislative body holds a meeting during a proclaimed state of emergency for the purpose 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 holds a meeting during a proclaimed state of emergency and has determined, by majority vote, that, as a result of the emergency, meeting in person would present imminent risks to the health or safety of attendees ; and

WHEREAS, pursuant to Government Code Section 54953(e)(3), the City Council must reconsider the circumstances of the state of emergency and make specific finding every 30 d ays after enacting the provisions of Government Code Section 54953(e) by making the following findings:

1. The City Council has reconsidered the circumstances of the state of emergency; and

2. Either of the following circumstances exists:

A. The state of emergency continues to directly impact the ability of the members to safely meet in person; or
B. State or local officials continue to impose or recommend measures to promote social distancing; and
Packet Page 48 of 812Attachment 1 Page 1 of 3

RES. NO. 2023-01

Page 2 ends

WHEREAS, on March 4, 2020, Governor Newsom declared a State of Emergency pursuant to Section 8625 of the California Emergency Services Act in response to the COVID-19 pandemic (the Emergency); and

WHEREAS, the Centers for Disease Control and Prevention (CDC) continue to advise that COVID- 19 spreads more easily indoors than outdoors and that people are more likely to be exposed to COVID-19 when they are closer than 6 feet apart from others for longer periods of time; and

WHEREAS, the California Department of Public Health (CDPH) and the CDC caution that the Delta variant of COVID-19, currently the dominant strain of COVID-19 in the country, is more transmissible than prior variants of the virus, may cause more severe illness, and that even fully vaccinated individuals can spread the virus to others resulting in rapid and alarming rates of COVID-19 cases and hospitalizations; and

WHEREAS, the CDC has established a “Community Transmission” metric with 4 tiers designed to reflect a community’s COVID-19 case rate and percent positivity; and

WHEREAS, Solano County currently has a Community Transmission metric of “high” which is the most serious of the tiers; and

WHEREAS, due to the ongoing COVID-19 pandemic and the need to promote social distancing to reduce the likelihood of exposure to COVID-19, the City Council intends to hold public meetings via teleconferencing pursuant to Government Code Section 54953(e); and

WHEREAS, on October 5, 2021, the City Council adopted the provisions of Government Code Section 54953(e) for the first time by resolution and majority vote.

NOW, THEREFORE, THE COUNCIL OF THE CITY OF FAIRFIELD HEREBY RESOLVES:

Section 1. The Recitals provided above are true and correct and are hereby incorporated by reference.

Section 2. The City Council hereby determines that, as a result of the Emergency, meeting in person presents imminent risks to the health or safety of attendees.

Section 3. The City Council shall conduct its meetings pursuant to Government Code section 54953(e) and authorizes its boards and commissions to do likewise.

Section 4. The City Council has reconsidered the circumstances of the state of emergency.

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RES. NO. 2023-01

Page 3 ends

Section 5. The state of emergency continues to directly impact the ability of the City Council members to meet safely in person.

Section 6. State or local officials continue to impose or recommend measures to promote social distancing.

Section 7. Staff is hereby authorized and directed to continue to take all actions necessary to carry out the intent and purpose of this resolution including, conducting open and public meetings in accordance with Government Code section 54953(e) and other applicable provisi ons of the Brown Act.

Section 8. This resolution shall take effect immediately upon its adoption and must be reconsidered within 30 days to stay in effect.

PASSED AND ADOPTED this 17th day of January, 2023, by the following vote:

AYES: COUNCILMEMBERS: MOY / BERTANI / CARR /PANDURO / TONNESEN/ VACCARO / WILLIAMS

NOES: COUNCILMEMBERS:

ABSENT: COUNCILMEMBERS:

ABSTAIN: COUNCILMEMBERS:

MAYOR

ATTEST:

____________________________

CITY CLERK

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Agenda Item No: 7.

AGENDA REPORT
DATE:January 17, 2023
TO:Mayor and City Council
FROM:David Gassaway, City Manager
SUBJECT:Resolution 202302 of the City Council of the City of Fairfield Intention to Establish a Community Facilities District, One or More Improvement Areas and a Future Annexation Area for the One Lake Project (“Resolution of Intention to Establish”) Resolution 202303 of the City Council of the City of Fairfield Intention to Incur Bonded and Other Indebtedness (“Resolution of Intention to Incur Debt”) RECOMMENDED ACTION
Adopt resolutions.

STATEMENT OF ISSUE
In connection with the One Lake project (the “Project”), and under the authority of the MelloRoos Community Facilities Act of 1982, as amended (the “MelloRoos Act”), the City Council previously established the City of Fairfield Community Facilities District No. 20191 (One Lake) (CFD No. 20191) and Improvement Area No. 1 of the City of Fairfield Community Facilities District No. 20191 (One Lake) (Improvement Area No. 1 of CFD No. 20191), and subsequently annexed certain property into Improvement Area No. 1 of CFD 20191.

CFD No. 20191 and Improvement Area No. 1 of CFD No. 20191 are authorized to finance (i) public infrastructure required to develop the Project, including streets, street lighting, traffic signals, sewer and water facilities and parks (the “Facilities”) and (ii) certain public services related to the Project (the “Services”).

The developer of the Project, One Lake Holding LLC (the “Developer”), has petitioned (see Attachment 1) the City to form a new community facilities district for Planning Area 5 of the Project to finance the Facilities and the Services. The City Council is being asked to approve the attached resolutions to initiate the process for establishing the new community facilities district.

DISCUSSION
Background.In anticipation of construction of the Fairfield Vacaville Amtrak train station and transit oriented development around the station, the City adopted on July 26, 2011, a Train Station Specific Plan (the “Specific Plan”) for approximately 2,970 acres of land near the station; the Specific Plan was Packet Page 51 of 812

A portion of the property within the Specific Plan (the “Property”) is subject to an Amended and Restated Development Agreement, dated May 8, 2015 (as subsequently amended, the “Development Agreement”), between the City and the Developer (via assignment from Canon Station LLC) (the “Developer”). The Property is proposed for development as a 358.5acre master planned residential community known as One Lake with 2,226 singlefamily detached and multifamily homes and 70,000 square feet of commercial development. The Developer estimates that the development of One Lake will require more than $219.4 million of offsite and onsite infrastructure improvements (not including the cost of the fire station), and that approximately $97.4 million of those improvements are eligible for financing under the MelloRoos Act.

The Development Agreement requires the Developer to support a Train Station Specific Plan CFD (as defined in the Development Agreement) to provide funding for (a) public safety services (police and fire), (b) operation of public open space land, (c) maintenance of public parks, (d) operation and maintenance of public cemeteries, (e) maintenance of public roads and (f) lighting and landscaping maintenance that would otherwise be included in lighting and landscaping maintenance districts under the Development Agreement. The Train Station Specific Plan CFD, designated City of Fairfield Community Facilities District No. 20181 (Train Station Specific Plan), was established on August 21, 2018 following an election of the qualified landowner electors.

The Development Agreement also authorizes the Developer to ask the City to form one or more community facilities districts (each, an “infrastructure CFD”) for the purpose of funding the construction of public improvements required by the Specific Plan, subject to certain conditions, including:
a. The infrastructure funded by an infrastructure CFD must be located within or adjacent to the Project Area (as defined in the Development Agreement) and may not be a public improvement funded by a development impact fee, including the Northeast Fee. The fire station to be funded by the infrastructure CFD is deemed to be adjacent to the Project Area.
b. The Development Agreement originally provided that the special taxes levied by an infrastructure CFD may not cause the combined total of the 1% ad valorem property tax, any existing supplemental ad valorem property taxes, the Train Station Specific Plan CFD special tax (except as provided below) and the infrastructure CFD to exceed 1.5% of the estimated assessed valuation of the residential properties proposed to be included in the infrastructure CFD, but the authorized percentage was increased to 1.65% for Planning Area 5 pursuant to the Fourth Amendment to Development Agreement.

The Development Agreement requires the estimated assessed valuation of residential property to be determined by the City at the time of formation of the infrastructure CFD based on the estimated sales price of each fully developed residential unit. The 1.65% target excludes HOA dues, assessments related to any lighting and landscaping maintenance costs required by the Development Agreement (including those funded by the Train Station Specific Plan CFD) and any utility charges, utility user tax, parcel tax, sales tax or any other similar charges, taxes or fees that exist at the time of formation of the infrastructure CFD.

In 2018, the Developer asked the City to create an infrastructure CFD in accordance with the Development Agreement. At that time, Staff proposed that the requested infrastructure CFD also finance public services to be provided by the City to the Project on a perpetual basis, but only after the earlier of (i) 50 years and (ii) the date on which the City determines that all bonds issued for the proposed infrastructure CFD have been paid and there is no other public infrastructure that the City intends to fund with the proposed infrastructure CFD. In response, the City previously formed CFD No. 20191 and Improvement Area No. 1 of CFD No. 20191, and subsequently annexed certain property to Improvement Area No. 1 of CFD 20191. Accordingly, CFD No. 20191 and Improvement Area No. 1 of CFD No. 20191 are authorized to finance the Facilities and Services. The City has issued two series of bonds to finance the Facilities for CFD No. 20191.

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The Developer has submitted a petition to the City Council asking it to establish a new community facilities district for Planning Area 5 of the Project. The new community facilities district would finance substantially the same Facilities and the same Services as CFD 20191, although the special tax rates would reflect the 1.65% allin tax rate.

Formation of the CFD No. 20231.Staff is recommending that the City Council establish (i) City of Fairfield Community Facilities District No. 20231 (One Lake Planning Area 5) (CFD No. 20231), (ii) Improvement Area No. 1 of the City of Fairfield Community Facilities District No. 20231 (One Lake Planning Area 5) (“Improvement Area No. 1 of CFD No. 20231”) and (iii) a future annexation area for CFD No. 20231 (the “Future Annexation Area”).

The formation of CFD No. 20231, Improvement Area No. 1 of CFD No. 20231 and the Future Annexation Area will be accomplished at three separate City Council meetings:
(i) at tonight’s meeting, the City Council will consider the Resolution of Intention to Establish and the Resolution of Intention to Incur Debt, which are described more fully below; (ii) at a future Council meeting, (A) the City Council will hold public hearings on establishing CFD No. 20231, Improvement Area No. 1 of CFD No. 20231 and the Future Annexation Area and issuing bonded indebtedness and other debt for CFD No. 20231, (B) the City Clerk will conduct a landowner election in Improvement Area No. 1 of CFD No. 20231 (the Developer is the only qualified elector) and (C) the City Council will undertake related actions, including introducing an ordinance ordering the levy of special taxes within CFD No. 20231; and
(iii) at a third Council meeting, the Council will be asked to adopt the ordinance ordering the levy of special taxes within CFD No. 20231.

This formation process is expected to be complete in March 2023.

Resolutions of Intention.

The Resolution of Intention to Establish declares the City’s intent to establish CFD No. 20231, Improvement Area No. 1 of CFD No. 20231 and the Future Annexation Area.

Improvement Area No. 1 of CFD No. 20231 will consist of a portion of the Property in Planning Area 5.

The purpose of establishing Improvement Area No. 1 of CFD 20231 is to allow the special tax rate to be set for the portion of the Project that is ready for development, where the product type and pricing is known. The Future Annexation Area will consist of the remainder of the Property in Planning Area 5; the Developer will decide whether to annex it into CFD No. 20231 depending on its final land use. See Attachment 5 for the proposed boundary map for CFD No. 20231.

Under the Resolution of Intention to Incur Debt, the principal amount of any bonded indebtedness for Improvement Area No. 1 may not exceed $90,000,000. The principal amount of any bonded indebtedness issued for that portion of CFD No. 20231 that is not included in Improvement Area No. 1 may not exceed $15,000,000.

Use of Special Taxes; Transition from Facilities Special Tax to Services Special Tax.

Facilities Special Tax.Immediately after formation of CFD No. 20231, a special tax to finance public infrastructure (a “Facilities Special Tax”) will be levied annually on taxable properties that are located within the boundaries of Improvement Area No. 1 of CFD No. 20231. The Facilities Special Tax will pay debt service on any bonds issued for CFD No. 20231 (the bonds will not be payable from any other City funds) and the City’s costs of administering CFD No. 20231.

Packet Page 53 of 812

Agenda Item No: 7.AGENDA REPORTDATE:January 17, 2023 TO:Mayor and City CouncilFROM:David Gassaway, City ManagerSUBJECT:Resolution 202302 of the City Council of the City of Fairfield Intention to Establish aCommunity Facilities District, One or More Improvement Areas and a FutureAnnexation Area for the One Lake Project (“Resolution of Intention to Establish”) Resolution 202303 of the City Council of the City of Fairfield Intention to Incur Bondedand Other Indebtedness (“Resolution of Intention to Incur Debt”)RECOMMENDED ACTIONAdopt resolutions.STATEMENT OF ISSUEIn connection with the One Lake project (the “Project”), and under the authority of the MelloRoosCommunity Facilities Act of 1982, as amended (the “MelloRoos Act”), the City Council previouslyestablished the City of Fairfield Community Facilities District No. 20191 (One Lake) (CFD No. 20191)and Improvement Area No. 1 of the City of Fairfield Community Facilities District No. 20191 (OneLake) (Improvement Area No. 1 of CFD No. 20191), and subsequently annexed certain property intoImprovement Area No. 1 of CFD 20191.CFD No. 20191 and Improvement Area No. 1 of CFD No. 20191 are authorized to finance (i) publicinfrastructure required to develop the Project, including streets, street lighting, traffic signals, sewer andwater facilities and parks (the “Facilities”) and (ii) certain public services related to the Project (the“Services”).The developer of the Project, One Lake Holding LLC (the “Developer”), has petitioned (see Attachment1) the City to form a new community facilities district for Planning Area 5 of the Project to finance theFacilities and the Services. The City Council is being asked to approve the attached resolutions toinitiate the process for establishing the new community facilities district.DISCUSSIONBackground.In anticipation of construction of the Fairfield Vacaville Amtrak train station and transitoriented development around the station, the City adopted on July 26, 2011, a Train Station SpecificPlan (the “Specific Plan”) for approximately 2,970 acres of land near the station; the Specific Plan wassubsequently amended on August 21, 2012. A portion of the property within the Specific Plan (the “Property”) is subject to an Amended andRestated Development Agreement, dated May 8, 2015 (as subsequently amended, the “DevelopmentAgreement”), between the City and the Developer (via assignment from Canon Station LLC) (the“Developer”). The Property is proposed for development as a 358.5acre master planned residentialcommunity known as One Lake with 2,226 singlefamily detached and multifamily homes and 70,000square feet of commercial development. The Developer estimates that the development of One Lakewill require more than $219.4 million of offsite and onsite infrastructure improvements (not including thecost of the fire station), and that approximately $97.4 million of those improvements are eligible forfinancing under the MelloRoos Act.The Development Agreement requires the Developer to support a Train Station Specific Plan CFD (asdefined in the Development Agreement) to provide funding for (a) public safety services (police andfire), (b) operation of public open space land, (c) maintenance of public parks, (d) operation andmaintenance of public cemeteries, (e) maintenance of public roads and (f) lighting and landscapingmaintenance that would otherwise be included in lighting and landscaping maintenance districts underthe Development Agreement. The Train Station Specific Plan CFD, designated City of FairfieldCommunity Facilities District No. 20181 (Train Station Specific Plan), was established on August 21,2018 following an election of the qualified landowner electors.The Development Agreement also authorizes the Developer to ask the City to form one or morecommunity facilities districts (each, an “infrastructure CFD”) for the purpose of funding the constructionof public improvements required by the Specific Plan, subject to certain conditions, including:a. The infrastructure funded by an infrastructure CFD must be located within or adjacent to the ProjectArea (as defined in the Development Agreement) and may not be a public improvement funded by adevelopment impact fee, including the Northeast Fee. The fire station to be funded by the infrastructureCFD is deemed to be adjacent to the Project Area.b. The Development Agreement originally provided that the special taxes levied by an infrastructureCFD may not cause the combined total of the 1% ad valorem property tax, any existing supplementalad valorem property taxes, the Train Station Specific Plan CFD special tax (except as provided below)and the infrastructure CFD to exceed 1.5% of the estimated assessed valuation of the residentialproperties proposed to be included in the infrastructure CFD, but the authorized percentage wasincreased to 1.65% for Planning Area 5 pursuant to the Fourth Amendment to Development Agreement.The Development Agreement requires the estimated assessed valuation of residential property to bedetermined by the City at the time of formation of the infrastructure CFD based on the estimated salesprice of each fully developed residential unit. The 1.65% target excludes HOA dues, assessmentsrelated to any lighting and landscaping maintenance costs required by the Development Agreement(including those funded by the Train Station Specific Plan CFD) and any utility charges, utility user tax,parcel tax, sales tax or any other similar charges, taxes or fees that exist at the time of formation of theinfrastructure CFD.In 2018, the Developer asked the City to create an infrastructure CFD in accordance with theDevelopment Agreement. At that time, Staff proposed that the requested infrastructure CFD alsofinance public services to be provided by the City to the Project on a perpetual basis, but only after theearlier of (i) 50 years and (ii) the date on which the City determines that all bonds issued for theproposed infrastructure CFD have been paid and there is no other public infrastructure that the Cityintends to fund with the proposed infrastructure CFD. In response, the City previously formed CFD No.20191 and Improvement Area No. 1 of CFD No. 20191, and subsequently annexed certain property toImprovement Area No. 1 of CFD 20191. Accordingly, CFD No. 20191 and Improvement Area No. 1 ofCFD No. 20191 are authorized to finance the Facilities and Services. The City has issued two seriesof bonds to finance the Facilities for CFD No. 20191.The Developer has submitted a petition to the City Council asking it to establish a new communityfacilities district for Planning Area 5 of the Project. The new community facilities district would financesubstantially the same Facilities and the same Services as CFD 20191, although the special tax rateswould reflect the 1.65% allin tax rate. Formation of the CFD No. 20231.Staff is recommending that the City Council establish (i) City ofFairfield Community Facilities District No. 20231 (One Lake Planning Area 5) (CFD No. 20231), (ii)Improvement Area No. 1 of the City of Fairfield Community Facilities District No. 20231 (One LakePlanning Area 5) (“Improvement Area No. 1 of CFD No. 20231”) and (iii) a future annexation area forCFD No. 20231 (the “Future Annexation Area”).The formation of CFD No. 20231, Improvement Area No. 1 of CFD No. 20231 and the FutureAnnexation Area will be accomplished at three separate City Council meetings:(i) at tonight’s meeting, the City Council will consider the Resolution of Intention to Establish and theResolution of Intention to Incur Debt, which are described more fully below;(ii) at a future Council meeting, (A) the City Council will hold public hearings on establishing CFD No.20231, Improvement Area No. 1 of CFD No. 20231 and the Future Annexation Area and issuingbonded indebtedness and other debt for CFD No. 20231, (B) the City Clerk will conduct a landownerelection in Improvement Area No. 1 of CFD No. 20231 (the Developer is the only qualified elector) and(C) the City Council will undertake related actions, including introducing an ordinance ordering the levyof special taxes within CFD No. 20231; and(iii) at a third Council meeting, the Council will be asked to adopt the ordinance ordering the levy ofspecial taxes within CFD No. 20231.This formation process is expected to be complete in March 2023.Resolutions of Intention.The Resolution of Intention to Establish declares the City’s intent to establish CFD No. 20231,Improvement Area No. 1 of CFD No. 20231 and the Future Annexation Area. Improvement Area No. 1 of CFD No. 20231 will consist of a portion of the Property in Planning Area 5.The purpose of establishing Improvement Area No. 1 of CFD 20231 is to allow the special tax rate tobe set for the portion of the Project that is ready for development, where the product type and pricing isknown. The Future Annexation Area will consist of the remainder of the Property in Planning Area 5; theDeveloper will decide whether to annex it into CFD No. 20231 depending on its final land use. SeeAttachment 5 for the proposed boundary map for CFD No. 20231.Under the Resolution of Intention to Incur Debt, the principal amount of any bonded indebtedness forImprovement Area No. 1 may not exceed $90,000,000. The principal amount of any bondedindebtedness issued for that portion of CFD No. 20231 that is not included in Improvement Area No. 1may not exceed $15,000,000.Use of Special Taxes; Transition from Facilities Special Tax to Services Special Tax.Facilities Special Tax.Immediately after formation of CFD No. 20231, a special tax to finance publicinfrastructure (a “Facilities Special Tax”) will be levied annually on taxable properties that are locatedwithin the boundaries of Improvement Area No. 1 of CFD No. 20231. The Facilities Special Tax will pay debt service on any bonds issued for CFD No. 20231 (the bonds will not be payable from any other City funds) and the City’s costs of administering CFD No. 20231.

If the property in the Future Annexation Area annexes into CFD No. 20231, the Facilities Special Tax will be levied on that property also. If the property annexes into a new improvement area, the Facilities Special Tax will reflect the size, type and price of the proposed homes in the new improvement area.

Services Special Tax.As described above, the Facilities Special Taxes will transition to a special tax levied to pay for public services (a “Services Special Tax”). This transition will occur independently for each improvement area, after the earlier of (i) 50 years (which is fiscal year 207273) and (ii) the date on which the City determines that all bonds issued for the improvement area have been paid and there is no other public infrastructure that the City intends to fund with the improvement area.

For each Improvement Area, the Services Special Tax will be 25% of the Facilities Special Tax.

The Resolution of Intention to Establish broadly defines the public services that can be financed by CFD No. 20231:

1. Maintenance and operation of the fire station serving CFD No. 20231 (regardless of whether it is located within the boundaries of CFD No. 20231) and any other real property or tangible property within the boundaries of CFD No. 20231 with an estimated useful life of five or more years that is owned by the City or by another local agency pursuant to an agreement with the One Lake City.

2. Fire protection and suppression services and ambulance and paramedic services provided to CFD No. 20231.

3. Police protection services, including, but not limited to, criminal justice services.

4. Maintenance and lighting of parks, parkways, streets, roads, and open space.

5.Flood and storm protection services, including, but not limited to, the operation and maintenance of storm drainage systems, plowing and removal of snow, and sandstorm protection systems.

FINANCIAL IMPACT
There is no General Fund or fiscal impact to the City. The City’s costs of forming CFD No. 20231 will be paid by the Developer under the attached Deposit and Reimbursement Agreement, and any bonds issued for CFD No. 20231 will be payable only by special taxes levied in CFD No. 20231.

The Services Special Tax will provide an ongoing source of funds to pay for public services provided by the City to the Project.

PUBLIC CONTACT/ADVISORY BODY RECOMMENDATION
N/A
ALTERNATIVE ACTION
The council may choose to not allow the formation of CFD No. 20231, which could prevent the Project from moving forward and delay construction. However, pursuant to the Development Agreement, the City has agreed to cooperate with the Developer in forming an infrastructure CFD. In addition, not allowing formation of CFD No. 20231 would eliminate a perpetual source of funding for public services provided by the City to the Project.

STAFF CONTACT
John Furtado, Director of Finance
(707) 4287629
[email protected]
Packet Page 54 of 812

Agenda Item No: 7.AGENDA REPORTDATE:January 17, 2023 TO:Mayor and City CouncilFROM:David Gassaway, City ManagerSUBJECT:Resolution 202302 of the City Council of the City of Fairfield Intention to Establish aCommunity Facilities District, One or More Improvement Areas and a FutureAnnexation Area for the One Lake Project (“Resolution of Intention to Establish”) Resolution 202303 of the City Council of the City of Fairfield Intention to Incur Bondedand Other Indebtedness (“Resolution of Intention to Incur Debt”)RECOMMENDED ACTIONAdopt resolutions.STATEMENT OF ISSUEIn connection with the One Lake project (the “Project”), and under the authority of the MelloRoosCommunity Facilities Act of 1982, as amended (the “MelloRoos Act”), the City Council previouslyestablished the City of Fairfield Community Facilities District No. 20191 (One Lake) (CFD No. 20191)and Improvement Area No. 1 of the City of Fairfield Community Facilities District No. 20191 (OneLake) (Improvement Area No. 1 of CFD No. 20191), and subsequently annexed certain property intoImprovement Area No. 1 of CFD 20191.CFD No. 20191 and Improvement Area No. 1 of CFD No. 20191 are authorized to finance (i) publicinfrastructure required to develop the Project, including streets, street lighting, traffic signals, sewer andwater facilities and parks (the “Facilities”) and (ii) certain public services related to the Project (the“Services”).The developer of the Project, One Lake Holding LLC (the “Developer”), has petitioned (see Attachment1) the City to form a new community facilities district for Planning Area 5 of the Project to finance theFacilities and the Services. The City Council is being asked to approve the attached resolutions toinitiate the process for establishing the new community facilities district.DISCUSSIONBackground.In anticipation of construction of the Fairfield Vacaville Amtrak train station and transitoriented development around the station, the City adopted on July 26, 2011, a Train Station SpecificPlan (the “Specific Plan”) for approximately 2,970 acres of land near the station; the Specific Plan wassubsequently amended on August 21, 2012. A portion of the property within the Specific Plan (the “Property”) is subject to an Amended andRestated Development Agreement, dated May 8, 2015 (as subsequently amended, the “DevelopmentAgreement”), between the City and the Developer (via assignment from Canon Station LLC) (the“Developer”). The Property is proposed for development as a 358.5acre master planned residentialcommunity known as One Lake with 2,226 singlefamily detached and multifamily homes and 70,000square feet of commercial development. The Developer estimates that the development of One Lakewill require more than $219.4 million of offsite and onsite infrastructure improvements (not including thecost of the fire station), and that approximately $97.4 million of those improvements are eligible forfinancing under the MelloRoos Act.The Development Agreement requires the Developer to support a Train Station Specific Plan CFD (asdefined in the Development Agreement) to provide funding for (a) public safety services (police andfire), (b) operation of public open space land, (c) maintenance of public parks, (d) operation andmaintenance of public cemeteries, (e) maintenance of public roads and (f) lighting and landscapingmaintenance that would otherwise be included in lighting and landscaping maintenance districts underthe Development Agreement. The Train Station Specific Plan CFD, designated City of FairfieldCommunity Facilities District No. 20181 (Train Station Specific Plan), was established on August 21,2018 following an election of the qualified landowner electors.The Development Agreement also authorizes the Developer to ask the City to form one or morecommunity facilities districts (each, an “infrastructure CFD”) for the purpose of funding the constructionof public improvements required by the Specific Plan, subject to certain conditions, including:a. The infrastructure funded by an infrastructure CFD must be located within or adjacent to the ProjectArea (as defined in the Development Agreement) and may not be a public improvement funded by adevelopment impact fee, including the Northeast Fee. The fire station to be funded by the infrastructureCFD is deemed to be adjacent to the Project Area.b. The Development Agreement originally provided that the special taxes levied by an infrastructureCFD may not cause the combined total of the 1% ad valorem property tax, any existing supplementalad valorem property taxes, the Train Station Specific Plan CFD special tax (except as provided below)and the infrastructure CFD to exceed 1.5% of the estimated assessed valuation of the residentialproperties proposed to be included in the infrastructure CFD, but the authorized percentage wasincreased to 1.65% for Planning Area 5 pursuant to the Fourth Amendment to Development Agreement.The Development Agreement requires the estimated assessed valuation of residential property to bedetermined by the City at the time of formation of the infrastructure CFD based on the estimated salesprice of each fully developed residential unit. The 1.65% target excludes HOA dues, assessmentsrelated to any lighting and landscaping maintenance costs required by the Development Agreement(including those funded by the Train Station Specific Plan CFD) and any utility charges, utility user tax,parcel tax, sales tax or any other similar charges, taxes or fees that exist at the time of formation of theinfrastructure CFD.In 2018, the Developer asked the City to create an infrastructure CFD in accordance with theDevelopment Agreement. At that time, Staff proposed that the requested infrastructure CFD alsofinance public services to be provided by the City to the Project on a perpetual basis, but only after theearlier of (i) 50 years and (ii) the date on which the City determines that all bonds issued for theproposed infrastructure CFD have been paid and there is no other public infrastructure that the Cityintends to fund with the proposed infrastructure CFD. In response, the City previously formed CFD No.20191 and Improvement Area No. 1 of CFD No. 20191, and subsequently annexed certain property toImprovement Area No. 1 of CFD 20191. Accordingly, CFD No. 20191 and Improvement Area No. 1 ofCFD No. 20191 are authorized to finance the Facilities and Services. The City has issued two seriesof bonds to finance the Facilities for CFD No. 20191.The Developer has submitted a petition to the City Council asking it to establish a new communityfacilities district for Planning Area 5 of the Project. The new community facilities district would financesubstantially the same Facilities and the same Services as CFD 20191, although the special tax rateswould reflect the 1.65% allin tax rate. Formation of the CFD No. 20231.Staff is recommending that the City Council establish (i) City ofFairfield Community Facilities District No. 20231 (One Lake Planning Area 5) (CFD No. 20231), (ii)Improvement Area No. 1 of the City of Fairfield Community Facilities District No. 20231 (One LakePlanning Area 5) (“Improvement Area No. 1 of CFD No. 20231”) and (iii) a future annexation area forCFD No. 20231 (the “Future Annexation Area”).The formation of CFD No. 20231, Improvement Area No. 1 of CFD No. 20231 and the FutureAnnexation Area will be accomplished at three separate City Council meetings:(i) at tonight’s meeting, the City Council will consider the Resolution of Intention to Establish and theResolution of Intention to Incur Debt, which are described more fully below;(ii) at a future Council meeting, (A) the City Council will hold public hearings on establishing CFD No.20231, Improvement Area No. 1 of CFD No. 20231 and the Future Annexation Area and issuingbonded indebtedness and other debt for CFD No. 20231, (B) the City Clerk will conduct a landownerelection in Improvement Area No. 1 of CFD No. 20231 (the Developer is the only qualified elector) and(C) the City Council will undertake related actions, including introducing an ordinance ordering the levyof special taxes within CFD No. 20231; and(iii) at a third Council meeting, the Council will be asked to adopt the ordinance ordering the levy ofspecial taxes within CFD No. 20231.This formation process is expected to be complete in March 2023.Resolutions of Intention.The Resolution of Intention to Establish declares the City’s intent to establish CFD No. 20231,Improvement Area No. 1 of CFD No. 20231 and the Future Annexation Area. Improvement Area No. 1 of CFD No. 20231 will consist of a portion of the Property in Planning Area 5.The purpose of establishing Improvement Area No. 1 of CFD 20231 is to allow the special tax rate tobe set for the portion of the Project that is ready for development, where the product type and pricing isknown. The Future Annexation Area will consist of the remainder of the Property in Planning Area 5; theDeveloper will decide whether to annex it into CFD No. 20231 depending on its final land use. SeeAttachment 5 for the proposed boundary map for CFD No. 20231.Under the Resolution of Intention to Incur Debt, the principal amount of any bonded indebtedness forImprovement Area No. 1 may not exceed $90,000,000. The principal amount of any bondedindebtedness issued for that portion of CFD No. 20231 that is not included in Improvement Area No. 1may not exceed $15,000,000.Use of Special Taxes; Transition from Facilities Special Tax to Services Special Tax.Facilities Special Tax.Immediately after formation of CFD No. 20231, a special tax to finance publicinfrastructure (a “Facilities Special Tax”) will be levied annually on taxable properties that are locatedwithin the boundaries of Improvement Area No. 1 of CFD No. 20231. The Facilities Special Tax will paydebt service on any bonds issued for CFD No. 20231 (the bonds will not be payable from any otherCity funds) and the City’s costs of administering CFD No. 20231. If the property in the Future Annexation Area annexes into CFD No. 20231, the Facilities Special Taxwill be levied on that property also. If the property annexes into a new improvement area, the FacilitiesSpecial Tax will reflect the size, type and price of the proposed homes in the new improvement area.Services Special Tax.As described above, the Facilities Special Taxes will transition to a special taxlevied to pay for public services (a “Services Special Tax”). This transition will occur independently foreach improvement area, after the earlier of (i) 50 years (which is fiscal year 207273) and (ii) the dateon which the City determines that all bonds issued for the improvement area have been paid and thereis no other public infrastructure that the City intends to fund with the improvement area. For each Improvement Area, the Services Special Tax will be 25% of the Facilities Special Tax.The Resolution of Intention to Establish broadly defines the public services that can be financed by CFDNo. 20231:1. Maintenance and operation of the fire station serving CFD No. 20231 (regardless of whether it islocated within the boundaries of CFD No. 20231) and any other real property or tangible propertywithin the boundaries of CFD No. 20231 with an estimated useful life of five or more years that isowned by the City or by another local agency pursuant to an agreement with the One Lake City. 2. Fire protection and suppression services and ambulance and paramedic services provided toCFD No. 20231.3. Police protection services, including, but not limited to, criminal justice services.4. Maintenance and lighting of parks, parkways, streets, roads, and open space.5.Flood and storm protection services, including, but not limited to, the operation and maintenance ofstorm drainage systems, plowing and removal of snow, and sandstorm protection systems.FINANCIAL IMPACTThere is no General Fund or fiscal impact to the City. The City’s costs of forming CFD No. 20231 willbe paid by the Developer under the attached Deposit and Reimbursement Agreement, and any bondsissued for CFD No. 20231 will be payable only by special taxes levied in CFD No. 20231.The Services Special Tax will provide an ongoing source of funds to pay for public services provided bythe City to the Project.PUBLIC CONTACT/ADVISORY BODY RECOMMENDATIONN/AALTERNATIVE ACTIONThe council may choose to not allow the formation of CFD No. 20231, which could prevent the Projectfrom moving forward and delay construction. However, pursuant to the Development Agreement, theCity has agreed to cooperate with the Developer in forming an infrastructure CFD. In addition, notallowing formation of CFD No. 20231 would eliminate a perpetual source of funding for public servicesprovided by the City to the Project.STAFF CONTACTJohn Furtado, Director of Finance (707) 4287629
[email protected]
COORDINATED WITH
City Attorney's Office, Community Development Department, Public Works Department, and Bond Council
ATTACHMENTS:

Description
Attachment 1: Property Owner Petition
Attachment 2: Proposed Resolution to Establish a Community Facilities District, One or More Improvement Areas and a Future Annexation
Attachment 2a: Exhibit B
Attachment 3: Proposed Resolution Declaring Its Intention to Incur Bonded and Other Indebtedness
Attachment 4: Deposit and Reimbursement Agreement
Attachment 5: Boundary Map
REVIEWERS:

Reviewer Action Date
Doyle, Ashley Approved 1/4/2023 2:20 PM
Burleson, Michele Approved 1/4/2023 2:25 PM
Burleson, Michele Approved 1/4/2023 6:47 PM
Beavers, Esther Approved 1/4/2023 6:54 PM
Beavers, Esther Approved 1/4/2023 6:54 PM
Packet Page 55 of 812

PETITION TO CREATE A

COMMUNITY FACILITIES DISTRICT,

IMPROVEMENT AREA AND

FUTURE ANNEXATION AREA
(Including Waivers)

January 9, 2022

City Council of the
City of Fairfield
1000 Webster Street
Fairfield, California 94533

Members of the Council:

This is a petition to create a community facilities district, an improvement area and a future annexation area and related matters (the “Petition”) submitted pursuant to the Mello-Roos Community Facilities Act of 1982 (Section 53311 and following of the California Government Code) (the “Act”).

1. Petitioners. This Petition is submitted pursuant to the Act to the City of Fairfield (the “City”) by the owner (the “Property Owner”) of 100% of the fee simple interest in the parcels of land identified by Assessor Parcel Numbers shown in Exhibit C (the “Property”) and further shown as “Improvement Area No. 1 of the City of Fairfield Community Facilities District No. 2023-1 (One Lake Planning Area 5)” (“Improvement Area No. 1”) on the map attached hereto as Exhibit B. The Property Owner warrants to the City with respect to the Property that the signatories are authorized to execute this Petition and that the submission of this Petition and participation in the City’s proceedings under the Act will not constitute a violation or event of default under any existing financing arrangement in any way affecting the Property Owner and such Property, including any “due-on-encumbrance” clauses under any existing deeds of trust secured by the Property.

2. Request to Institute Proceedings. The City Council is hereby requested to do all of the following:

a. Undertake proceedings under the Act to create a community facilities district to be designated “City of Fairfield Community Facilities District No. 2023-1 (One Lake Planning Area 5)” (the “CFD”).

b. Designate the Property as Improvement Area No. 1.

c. Initiate and conduct legal proceedings pursuant to Article 3.5 of the Act, beginning with Section 53339 thereof (“Article 3.5”), to designate the area shown on Exhibit B as a future annexation area for the CFD (the “Future Annexation Area”). The Future Annexation Area will enable from time to time, the future annexation of all or any portions of the Future Annexation Area to the CFD without further hearing or further action by the City Council to the extent permitted by the Act, upon receipt of written unanimous approval of the owner or owners of each parcel or parcels at Packet Page 56 of 812Attachment 1 Page 1 of 11

2 the time that the parcel or parcels are annexed, without additional hearings, all as prescribed by and in conformity with the provisions of Article 3.5.

d. Conduct a landowner-voter election in Improvement Area No. 1 in accordance with the Act to obtain authorization (1) to levy a special tax for facilities (the “Facilities Special Tax”) and a special tax for services (the “Services Special Tax”) on the non-exempt property located within Improvement Area No. 1 and (2) to authorize the issue of special tax bonds and other debt for the CFD with respect to Improvement Area No. 1, all as shall be more fully established during the course of the requested legal proceedings for establishment of the CFD.

e. Conduct proceedings for the items described in (a) through (d) above.

3. Boundaries of CFD. The Property Owner hereby asks that the territory within the boundaries of the CFD, Improvement Area No. 1 and the Future Annexation Area be as shown on the map attached hereto as Exhibit B.

4. Purpose of CFD. The Property Owner believes that the CFD and the City of Fairfield Community Facilities District No. 2019-1 (One Lake) ("CFD No. 2019-1") are necessary to finance facilities and services associated with the One Lake project (the "Project"). The CFD, Improvement Area No. 1 and each improvement area created from the annexation to the CFD of territory in the Future Annexation Area shall be created for the purpose of financing the facilities (the “Authorized CFD Improvements”) and the public services described in Exhibit A attached hereto and incorporated herein by reference. With respect to Improvement Area No. 1 and each improvement area created from the Future Annexation Area, the Property Owner will request from time to time that the City Council issue special tax bonds and other debt (as defined in the Act) in one or more series to finance the Authorized CFD Improvements and the related incidental expenses of the proceedings and bond financing, and the Property Owner will cooperate in each issuance of special tax bonds and other debt.

5. Elections. The Property Owner hereby asks that the special election to be held under the Act to authorize the special taxes and the issuance of the bonds and other debt and to establish an appropriations limit for the CFD be consolidated into a single election and that the election be conducted by the City and its officials, using mailed or hand-delivered ballots, and that such ballots be opened and canvassed and the results certified at the same meeting of the City Council as the public hearings on the CFD under the Act or as soon thereafter as possible.

6. Waivers. To expedite the completion of the proceedings for the CFD and Improvement Area No. 1, all notices of hearings and all notices of election, applicable waiting periods under the Act for the election and all ballot analyses and arguments for the election are hereby waived. The Property Owner also waives any requirement as to the specific form of the ballot to be used for the election, whether under the Act, the California Elections Code, or otherwise.

7. Deposits. Compliance with the provisions of subsection (d) of Section 53318 of the Act has been accomplished by a deposit of funds by the Property Owner with the City, made not later than the date of submission of this petition to the City Clerk, pursuant to a Deposit and Reimbursement Agreement, between the City and the Property Owner, to pay the estimated costs to be incurred by the City in conducting proceedings for establishment of the CFD, Improvement Area No. 1 and the Future Annexation Area.

Packet Page 57 of 812Attachment 1 Page 2 of 11

3 8. Counterparts. This Petition may be executed in several counterparts, each of which shall be an original and all of which shall constitute but one and the same instrument.

9. Electronic Signatures. The Property Owner hereby agrees that its electronic signatures or other electronic indication of execution on all documents related to this transaction, and the electronic signature or other electronic indication of execution of other parties related to this transaction, shall be treated the same and have the same legally binding and enforceable effect as original manual signatures.

By executing this Petition, the person below agrees to all of the above.

The property that is the subject of
this Petition is identified on Exhibit
C and includes 171.08 acres

The name of the owner of record of such property
and the petitioner and its mailing address is:

ONE LAKE HOLDING LLC,
a Delaware limited liability company

By:

Name:

Its:

Mailing Address:

2121 N. California Blvd.

Suite 1010
Walnut Creek, California 94596

Packet Page 58 of 812Attachment 1 Page 3 of 11

Packet Page 59 of 812Attachment 1 Page 4 of 11

A-1

EXHIBIT A

PROPOSED DESCRIPTION OF FACILITIES AND SERVICES TO BE FINANCED BY THE CFD

AND EACH IMPROVEMENT AREA THEREIN

City of Fairfield
Community Facilities District No. 2023-1
(One Lake Planning Area 5)

AUTHORIZED FACILITIES

It is intended that the CFD (as used in this Exhibit A, the term “CFD” includes the CFD and each improvement area as originally designated and as designated in the future in connection with annexations of territory to the CFD) will be authorized to finance all or a portion of the costs of acquisition, construction, and improvement of facilities permitted under the Mello-Roos Community Facilities Act of 1982 that are required as conditions of development of the property within the Project and that will be owned and operated by the City or any other public agency identified by the City (subject to compliance with the Act), including, but not limited to, the following. No facilities may be financed that will be owned by a homeowners’ association.

1. Offsite sewer improvements.

2. Offsite potable water improvements and facilities, including but not limited to pump stations, buildings, water lines, and storage facilities.

3. Offsite non-potable water improvements and facilities, including but not limited to pump stations, water lines, and streetwork.

4. Storm drain/non-potable water pump station improvements, buildings, and facilities.

5. Backbone street and road improvements and facilities, including sewer, water, storm drain, street lights signage and striping, traffic signals, medians, curb, gutter, City fiber lines, pavement and bridges.

6. Intract Improvements including sewer, water, storm drain, street lights signage and striping, curb, gutter, and pavement.

7. Storm drain basins, bio-retention and storm drain improvements to meet storm management needs, including maintenance roads, fencing and other improvements.

8. Fire station that will serve property in the Project, including land, building, and associated site improvements.

The facilities authorized to be financed may be located within or adjacent to the Project Area, as that term is defined in that certain Amended and Restated Development Agreement dated May 8, 2015, between the City and One Lake Holding LLC (via assignment from Canon Station LLC), as amended from time to time. For purposes of clarity, a fire station serving the property in the Project shall be deemed to be adjacent to the Project Area and eligible to be financed by the CFD.

The facilities do not include any infrastructure funded with a development impact fee, including the Northeast Fee.

The facilities to be financed shall include all hard and soft costs associated with the facilities, including the costs of the acquisition of land and rights-of-way, the costs of design, engineering and planning, the costs of any environmental or traffic studies, surveys or other reports, costs associated with civil and geotechnical engineering certifications, improvements staking, erosion control, hydroseed, soils testing, encroachment expenses, permits, plan check, Packet Page 60 of 812Attachment 1 Page 5 of 11

2 and inspection fees, insurance, legal and related overhead costs, coordination and supervision and any other costs or appurtenances related to any of the foregoing as further defined in one or more acquisition agreements with the developer of the property in the Project.

AUTHORIZED SERVICES

Special Taxes collected in the CFD (as defined above) may finance, in whole or in part, the following services (“services” shall have the meaning given that term in the Mello-Roos Community Facilities Act of 1982):

1. Maintenance and operation of the fire station serving the Project (regardless of whether it is located within the boundaries of the CFD) and any other real property or tangible property within the boundaries of the Project with an estimated useful life of five or more years that is owned by the City or by another local agency pursuant to an agreement with the City.

2. Fire protection and suppression services and ambulance and paramedic services provided to the Project.

3. Police protection services, including, but not limited to, criminal justice services.

4. Maintenance and lighting of parks, parkways, streets, roads, and open space.

5. Flood and storm protection services, including, but not limited to, the operation and maintenance of storm drainage systems, plowing and removal of snow, and sandstorm protection systems.

OTHER

The CFD may also finance any of the following:

1. Bond and debt related expenses, including underwriters discount, reserve fund, capitalized interest, letter of credit fees and expenses, bond and disclosure counsel fees and expenses, bond remarketing costs, and all other incidental expenses.

2. Administrative fees of the City and the bond trustee or fiscal agent related to the CFD and the bonds and other debt.

3. Reimbursement of costs related to the formation of the CFD advanced by the City, the landowner(s) in the CFD, or any party related to any of the foregoing, as well as reimbursement of any costs advanced by the City, the landowner(s) in the CFD or any party related to any of the foregoing, for facilities, fees or other purposes or costs of the Project.

4. All “costs” and “incidental expenses” related to the eligible facilities as those terms are defined in the Act.

Special Taxes may be collected and set-aside in designated funds and collected over several years, and used to fund facilities or services authorized to be financed by the CFD.

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3 Packet Page 62 of 812Attachment 1 Page 7 of 11

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B-1

EXHIBIT B

PROPOSED BOUNDARY MAP

City of Fairfield
Community Facilities District No. 2023-1
(One Lake Planning Area 5)

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VANDEN ROADCANON ROAD
PEABODY ROADPUTAH SOUTH CANALDECEMBER 2022
LEGEND
600'

GRAPHIC SCALE
2,400'0'1,200'600'300'600'0'
SCALE: 1" =

PROPOSED BOUNDARIES OF

CITY OF FAIRFIELD
COMMUNITY FACILITIES DISTRICT NO. 2023-1
(ONE LAKE PLANNING AREA 5)
1668-016 SHEET 1 OF 1

COUNTY OF SOLANO STATE OF CALIFORNIA

CLERK'S MAP FILING STATEMENT

CLERK'S MAP STATEMENT

COUNTY RECORDER'S STATEMENT
NOTES

CIVIL ENGINEERS SURVEYORS PLANNERS

SAN RAMON
WWW.CBANDG.COM

ROSEVILLE
(925) 866-0322
(916)788-4456
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B-1

EXHIBIT C

LIST OF PARCELS CONSTITUTING THE PROPERTY

City of Fairfield
Community Facilities District No. 2023-1
(One Lake Planning Area 5)

* Only includes the acreage for the legal parcel currently identified by this APN that is initially included in Improvement Area No. 1. It does not include the acreage for the legal parcel currently identified by this APN that will be included in the Future Annexation Area.
# Reflects expected change in property line.

APN Acres
166-020-280* 95.65
166-020-290 19.83
166-420-010*# 44.75
166-420-020 7.05
166-420-030 3.85
Totals# 171.13
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CITY OF FAIRFIELD

RESOLUTION NO. 2023-02

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF FAIRFIELD INTENTION TO ESTABLISH A

COMMUNITY FACILITIES DISTRICT, ONE OR MORE IMPROVEMENT AREAS AND A FUTURE ANNEXATION AREA, FOR THE ONE LAKE PROJECT (“RESOLUTION OF INTENTION TO ESTABLISH”)

WHEREAS, under the Mello-Roos Community Facilities Act of 1982, as amended (the “Act”), Chapter 2.5 of Part 1 of Division 2 of Title 5, commencing at Section 53311, of the California Government Code, the City Council is authorized to establish a community facilities district and to act as the legislative body for a community facilities district; and

WHEREAS, the City Council, having received a petition from the owners of not less than 10% of the area of land proposed to be included in the proposed community facilities district and having received a Deposit and Reimbursement Agreement (the “Deposit Agreement”) to be executed by the City and One Lake Holding LLC, a Delaware limited liability company (the “Developer”), now desires to proceed with the establishment of a community facilities district in order to finance costs of public infrastructure and certain public services necessary or incident to development within the proposed boundaries of the proposed community facilities district and to authorize the execution and delivery of the Deposit Agreement, among other items; and

WHEREAS, pursuant to Section 53339.2 of the Act, the City Council further desires to undertake proceedings to provide for future annexation of territory to the proposed community facilities district.

NOW, THEREFORE, THE COUNCIL OF THE CITY OF FAIRFIELD HEREBY RESOLVES:

Section 1. Authority. The City Council proposes to conduct proceedin gs to establish a community facilities district and one or more improvement areas pursuant to the Act, and hereby determines that public convenience and necessity require that a future annexation area be established pursuant to the Act.

Section 2. Name of CFD, Initial Improvement Area and Future Annexation Area. The name proposed for the community facilities district is City of Fairfield Community Facilities District No. 2023-1 (One Lake Planning Area 5) (the “CFD”).

Pursuant to Section 53350 of the Act, the territory to be initially included in the CFD (as shown on the map described in Section 3 hereof) is hereby designated to include the following improvement area: “Improvement Area No. 1 of the City of Fairfield Community Facilities District No. 2023 -1 (One Lake Planning Area 5)” (“Improvement Area No. 1”).

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The name proposed for the territory proposed to be annexed to the CFD in the future is “City of Fairfield Community Facilities District No. 2023-1 (One Lake Planning Area 5) (Future Annexation Area)” (the “Future Annexation Area”).

Section 3. Boundaries Described. The proposed boundaries of the CFD, Improvement Area No. 1 and the Future Annexation Area are as shown on the map of them on file with the City Clerk, which boundaries are hereby preliminarily approved and to which map reference is hereby made for further particulars. The City Clerk is hereby directed to record, or cause to be recorded, the map of the boundaries of the CFD, Improvement Area No. 1 and the Future Annexation Area in the office of the Recorder of the County of Solano within 15 days of the date of adoption of this Resolution.

Parcels within the Future Annexation Area shall be annexed to the CFD only with the unanimous approval (each, a “Unanimous Approval”) of the owner or owners of each parcel or parcels at the time that parcel or those parcels are annexed, without any requirement for further public hearings or additional proceedings, except as described in Section 5.

Section 4. Facilities and Services. The City Council hereby finds that the CFD (and each improvement area thereof), if established, and the City of Fairfield Community Facilities District No. 2019-1 (One Lake) (“CFD No. 2019-1”), and each improvement area thereof, will be authorized to finance any facilities that are authorized by the Act and that are required as a condition of development of the One Lake project (the “Project”), and to finance certain services related to the Project.

The type of public facilities proposed to be financed by the CFD, Improvement Area No. 1, and any future improvement areas formed to include territory that annexes to the CFD from the Future Annexation Area (each, a “Future Improvement Area”) and pursuant to the Act shall consist of those listed as facilities on Exhibit A hereto and hereby incorporated herein (the “Facilities”). The City Council hereby determines that the Facilities are necessary to meet increased demands placed upon local agencies as the result of development occurring within the Project.

The City Council hereby finds and determines that the public interest will not be served by allowing the property owners in the CFD to enter into a contract in accordance with Section 53329.5(a) of the Act. Notwithstanding the foregoing, the City Council, on behalf of CFD, may enter into one or more contracts directly with any of the property owners with respect to the construction and/or acquisition of the any portion of the Facilities.

The type of services proposed to be financed by the CFD, Improvement Area No. 1 and each Future Improvement Area and pursuant to the Act shall consist of those listed in Exhibit A hereto and hereby incorporated herein (the “Services”). The Council hereby determines that the Services are necessary to meet increased demands for such services placed upon local agencies as the result of Packet Page 68 of 812Attachment 2 Page 2 of 11

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development occurring within the area of the Project. The Services are in addition to those provided in the territory of the Project as of the date hereof and will not supplant services already available within the territory of the Project as of the date hereof. The City intends to provide the Services on an equal basis in the original territory of the CFD and Improvement Area No. 1 and, when it has been annexed to the CFD, the Future Annexation Area (including any area therein designated to be annexed as a separate improvement area).

Section 5. Special Tax. Except to the extent that funds are otherwise available, the City will levy a special tax (the “Special Tax”) to pay directly for the Facilities, to pay the principal and interest on bonds and other debt (as defined in the Act) of the City issued for the CFD with respect to Improvement Area No. 1 and any Future Improvement Area to finance the Facilities and to pay for the Services. The Special Tax will be secured by recordation of a continuing lien against all non- exempt real property in the CFD, Improvement Area No. 1 and any Future Improvement Area, will be levied annually within the CFD, Improvement Area No. 1 and any Future Improvement Area, and collected in the same manner as ordinary ad valorem property taxes, or in such other manner as the City Council or its designee shall determine, including direct billing of the affected property owners. The proposed rate and method of apportionment of the Special Tax among the parcels of real property within Improvement Area No. 1 in sufficient detail to allow each landowner within Improvement Area No. 1 to estimate the maximum amount such owner will have to pay, are described in Exhibit B attached hereto and hereby incorporated herein (the “Rate and Method”).

The Special Tax to finance Facilities to be levied in Improvement Area No. 1 (the “Improvement Area No. 1 Facilities Special Tax”) shall not be levied in Improvement Area No. 1 after the fiscal year specified in the Rate and Method, except that an Improvement Area No. 1 Facilities Special Tax installment that was lawfully levied in or before the final tax year and that remains delinquent may be collected in subsequent years. Under no circumstances shall the Imp rovement Area No. 1 Facilities Special Tax levied against any parcel in Improvement Area No. 1 used for private residential purposes be increased as a consequence of delinquency or default by the owner of any other parcel or parcels within the CFD by more than 10%.

A Special Tax to finance Facilities shall not be levied in a Future Improvement Area after the fiscal year identified in the rate and method for the Future Improvement Area, except that any such Special Tax that was lawfully levied in or before the final tax year and that remains delinquent may be collected in subsequent years. Under no circumstances shall the Special Tax levied to finance Facilities against any parcel in a Future Improvement Area for private residential purposes be increased as a consequence of delinquency or default by the owner of any other parcel or parcels within the Future Improvement Area by more than 10 %.

For Future Improvement Areas, a different rate and method may be adopted if the annexed territory is designated as a separate improvement area. No supplements to the Rate and Method in connection with the annexation of territory to Improvement Area No. 1 (if any) and no new rate Packet Page 69 of 812Attachment 2 Page 3 of 11

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and method for any Future Improvement Area will cause the maximum tax rate in the territory that was in the CFD prior to the annexation (including Improvement Area No. 1) to increase.

The designation as an improvement area of any territory annexing to the CFD, the maximum amount of bonded indebtedness and other debt for such improvement area, the rate and method of apportionment of special tax for such improvement area and the appropriations limit for the CFD shall be identified and approved in the Unanimous Approval executed by property owners in connection with their annexation to the CFD. The annexation and related matters described in the Unanimous Approval shall be implemented and completed without the need for City Council approval as long as the following conditions are met:

(i) The rate and method of apportionment of special tax for the new improvement area is prepared by a special tax consultant retained by the City and paid for by the developer of the improvement area or the applicable property owners submitting the Unanimous Approval.

(ii) The rate and method of apportionment of special tax for the new improvement area complies with the City’s Goals and Policies in effect on the date of formation of the CFD, unless otherwise required by law.

(iii) The rate and method of apportionment of special tax for the new improvement area does not establish a maximum Special Tax amount for the initial fiscal year in which the Special Tax may be levied for any category of Special Tax that is greater than 120% of the maximum amount of the same category of Special Tax for the same fiscal year calculated pursuant to the Rate and Method for Improvement Area No. 1.

(iv) The rate and method of apportionment of special tax for the new improvement area does not introduce a Special Tax that was not included in the Rate and Method for Improvement Area No. 1 (e.g., a special tax that is levied and must be paid in a single fiscal year or over a shorter time period than 30 years).

(v) The rate and method of apportionment of special tax for the new improvement area gives the City the discretion to convert the Special Tax levied to finance Facilities to a Special Tax levied to finance Services subject to a similar “Transition Event” as the Rate and Method for Improvement Area No. 1 (modified, as applicable, to represent the timing of the new rate and method of apportionment of special tax for the new improvement area).

(vi) The rate and method of apportionment of special tax for the new improvement area is not inconsistent with the terms of the development agreement between the City and the developer of the property annexing to the CFD, whether or not it is still operative.

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(vii) The term of the Special Tax levied to finance Facilities in the rate and method of apportionment of special tax for the new improvement area shall be equal to or shorter than the same number of years as the term of the Improvement Area No. 1 Facilities Special Tax, calculated from the fiscal year in which the property is annexed to the CFD (e.g., if the term of the Improvement Area No. 1 Facilities Special Tax in the Rate and Method is fiscal year 2072-73, and the new improvement area is annexed to the CFD three years after formation of the CFD, then the maximum term of the Special Tax levied to finance Facilities in the rate and method of apportionment of special tax for the new improvement area would be 2075-76).

(viii) The rate and method of apportionment of special tax for the new improvement area includes a mechanism that protects against revenue loss as a result of land use changes.

The City Council hereby finds that the provisions of Section 53313.6, 53313.7 and 53313.9 of the Act (relating to adjustments to ad valorem property taxes and schools financed by a community facilities district) are inapplicable to the proposed CFD and Improvement Area No. 1.

As required by Section 53339.3(d) of the Act, the City Council hereby determines that if the Special Tax in the new improvement area is to be used to pay for the same costs of specific Facilities as those that were financed by the Special Tax in Improvement Area No. 1, then the Special Tax within the Future Improvement Area will be equal to the Special Taxes levied to pay for the same Facilities in previously-existing areas of the CFD and Improvement Area No. 1, except that a higher Special Tax may be levied within the Future Improvement Area to pay for the same costs of specific Facilities to compensate for the interest and principal previously paid from Special Taxes in the original area of the CFD and Improvement Area No. 1, less any depreciation allocable to the financed Facilities. If the Future Improvement Area is financing additional costs of the specific Facilities financed by Improvement Area No. 1 or is financing new or additional Facilities, then a higher Special Tax may be levied in the Future Impro vement Area to pay for such additional costs or such new or additional Facilities, with or without bond financing. As required by Section 53339.3(d) of the Act, the City Council hereby further determines that the Special Tax proposed to pay for Services to be supplied within a Future Improvement Area shall be equal to any Special Tax levied to pay for the same Services in the existing CFD and Improvement Area No. 1, except that a higher or lower tax may be levied within a Future Improvement Area to the ext ent that the actual cost of providing the Services in the Future Improvement Area is higher or lower than the cost of providing those Services in the existing CFD and Improvement Area No. 1. In so finding, the Council does not intend to limit its ability to levy a Special Tax within a Future Improvement Area to provide new or additional services beyond those supplied within the existing CFD and Improvement Area No. 1.

Section 6. Exempt Property. Except as may otherwise be provided by law or by the Rate an d Method, all lands owned by any public entity, including the United States, the State of California and/or the City, or any departments or political subdivisions thereof, shall be omitted from the Packet Page 71 of 812Attachment 2 Page 5 of 11

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levy of the Special Tax to be made to cover the costs and expenses of the Facilities, the Services or the CFD or Improvement Area No. 1. In the event that a portion of the property within Improvement Area No. 1 shall become for any reason exempt, wholly or in part, from the levy of the Special Tax, the City Council will, on behalf of the CFD, increase the levy to the extent necessary upon the remaining property within Improvement Area No. 1 which is not exempt in order to yield the required debt service payments and other annual expenses of the CFD with respect to Improvement Area No. 1, if any, subject to the provisions of the Rate and Method.

Except as may otherwise be provided by law or by the rate and method of apportionment for a Future Improvement Area, all lands owned by any public entity, including the Uni ted States, the State of California and/or the City, or any departments or political subdivisions thereof, shall be omitted from the levy of the Special Tax to be made to cover the costs and expenses of the Facilities, the Services and the Future Improvement Area. In the event that a portion of the property within the Future Improvement Area shall become for any reason exempt, wholly or in part, from the levy of the Special Tax, the City Council will, on behalf of the CFD, increase the levy to the extent necessary upon the remaining property within the Future Improvement Area which is not exempt in order to yield the required debt service payments and other annual expenses of the CFD with respect to a Future Improvement Area, if any, subject to the provision s of the rate and method of apportionment of the special tax.

Section 7. Election. The levy of the Special Tax in Improvement Area No. 1 in accordance with the Rate and Method, the issuance of bonded indebtedness and other debt for the CFD with respect to Improvement Area No. 1 and an appropriations limit for the CFD shall be s ubject to the approval of the qualified electors of Improvement Area No. 1 at a special election. The proposed voting procedure shall be by mailed or hand-delivered ballot among the landowners in the proposed Improvement Area No. 1, with each owner having one vote for each acre or portion of an acre such owner owns in Improvement Area No. 1 not exempt from the Special Tax levied in Improvement Area No. 1 in accordance with the Rate and Method.

A Special Tax shall be levied in the Future Annexation Area only with the Unanimous Approval of the owner or owners of each parcel or parcels at the time that parcel or those parcels are annexed, without any requirement for further public hearings or additional proceedings, except as set forth in Section 5. The designation as an improvement area of any territory annexing to the CFD from the Future Annexation Area, the maximum amount of bonded indebtedness for such improvement area, the rate and method of apportionment of special tax for such improvement area and the appropriations limit for the CFD shall be identified and approved in the Unanimous Approval executed by property owners in connection with their annexation to the CFD. Pursuant to Section 53329.6 of the Act, a Unanimous Approval executed by the owner of a p arcel constitutes the vote of the qualified elector in favor of the matters addressed in the unanimous approval for purposes of the California Constitution, including, but not limited to, Articles XIII A and XIII C.

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Section 8. Special Tax Bonds and Other Debt. It is the intention of the City Council, acting as the legislative body of the CFD, to cause bonds of the City and other debt (as defined in the Act) to be issued for the CFD with respect to Improvement Area No. 1 pursuant to the Act to finance in whole or in part the construction and/or acquisition of the Facilities. The bonds shall be in the aggregate principal amount of not to exceed $90,000,000 (the “Improvement Area No. 1 Bonded Indebtedness Limit”); the bonds shall be issued in such series and bear interest payable semi- annually or in such other manner as the City Council shall determine, at a rate not to exceed the maximum rate of interest as may be authorized by applicable law at the time of sale of each series of bonds, and shall mature not to exceed 40 years from the date of the issuance thereof. It is the intention of the City Council that the amount of debt other than bonds that may be issued by the City for the CFD with respect to Improvement Area No. 1 shall not be subject to the Improvem ent Area No. 1 Bonded Indebtedness Limit.

It is the intention of the City Council, acting as the legislative body of the CFD, to cause bonds of the City and other debt (as defined in the Act) to be issued for that portion of the CFD that is not included in Improvement Area No. 1 to finance in whole or in part the construction and/or acquisition of the Facilities. The bonds shall be in the aggregate principal amount of not to exceed $15,000,000 (the “Non-Improvement Area No. 1 Bonded Indebtedness Limit”), shall be issued in such series and bear interest payable semi-annually or in such other manner as the City Council shall determine, at a rate not to exceed the maximum rate of interest as may be authorized by applicable law at the time of sale of each series of bonds, and shall mature not to exceed 40 years from the date of the issuance thereof. It is the intention of the City Council that the amount of debt other than bonds that may be issued by the City for that portion of the CFD that is not included in Improvement Area No. 1 shall not be subject to the Non -Improvement Area No. 1 Bonded Indebtedness Limit.

In the event that all or a portion of the Future Annexation Area is annexed as one or more Future Improvement Areas, the designation as an improvement area of any territory annexing to the CFD from the Future Annexation Area, the maximum amount of bonded indebtedness for such improvement area, the rate and method of apportionment of special tax for such improvement area and the appropriations limit for t he CFD shall be identified and approved in the Unanimous Approval executed by property owners in connection with their annexation to the CFD, subject to the City Council approval in the circumstances described in Section 5. In that event, the amount of the maximum bonded indebtedness for the Future Improvement Area shall be subtracted from the Non-Improvement Area No. 1 Bonded Indebtedness Limit.

It is the intention of the City Council, acting as the legislative body for the CFD, to cause bonds and other debt of the City to be issued for the Future Improvement Areas pursuant to the Act to finance in whole or in part the construction and/or acquisition of the Facilities. The bonds shall be in the aggregate principal amount designated at the time of annexation, shall be issued in such series and bear interest payable semi-annually or in such other manner as the City Council shall Packet Page 73 of 812Attachment 2 Page 7 of 11

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determine, at a rate not to exceed the maximum rate of interest as may be authorized by applicable law at the time of sale of each series of bonds, and shall mature not to exceed 40 years from the date of the issuance thereof.

Section 9. CFD Report. The Director of Public Works, as the officer having charge and control of the Facilities and the Services in and for the CFD, Improvement Area No. 1 and the Future Improvement Areas, or the designee of such officer, is hereby directed to study said proposed Facilities and Services and to make, or cause to be made, and file with the City Clerk a report in writing (the “CFD Report”) presenting the following:

(a) A description of the Facilities and the Services by type which will be required to adequately meet the needs of the CFD, Improvement Area No. 1 and the Future Improvement Areas.
(b) An estimate of the fair and reasonable cost of the Facilities including the cost of acquisition of lands, rights-of-way and easements, any physical facilities required in conjunction therewith and incidental expenses in connection therewith, including the costs of the proposed bond financing and other debt and all other related costs as provided in Section 53345.3 of the Act. The CFD Report does not need to report on Facilities that have already been fully financed by CFD No. 2019-1.

(c) An estimate of the fair and reasonable cost of the Services and incidental expenses in connection therewith, and all other related costs.

The CFD Report shall be made a part of the record of the public hearing specified below.

Section 10. Public Hearing. Tuesday, February 21, 2023, at 6:00 p.m. or as soon as possible thereafter, in the City Council Chamber, 1000 Webster Street, Fairfield, California, be, and the same are hereby appointed and fixed as the time and place when and where the City Council, as legislative body for the CFD, will conduct a public hearing on the establishment of the CFD, Improvement Area No. 1 and the Future Annexation Area, and consider and finally determine whether the public interest, convenience and necessity require the formation of the CFD, Improvement Area No. 1 and the Future Annexation Area and the levy of the Special Tax, including the Special Tax proposed to be levied in Improvement Area No. 1 in accordance with the Rate and Method.

Section 11. Notice of Hearing. The city clerk is hereby directed to cause notice of the public hearing to be given by publication one time in a newspaper published in the area of the CFD and the Future Annexation Area. The publication shall be completed at least seven days before the date of the public hearing specified above. The notice shall be substantially in the form specified in Section 53322 of the Act, with the form summarizing the provisions hereof hereby specifically approved.

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Section 12. Deposit and Reimbursement Agreement. Section 53314.9 of the Act provides that, either before or after formation of the CFD, the City may accept advances of funds and may provide, by resolution, for the use of those funds, including but not limited to pay any cost incurred by the local agency in creating the CFD, and may agree to reimburse the advances under all of the following conditions: (A) the proposal to repay the advances is included both in the resolution of intention and the resolution of formation to establish the CFD; and (B) any proposed Special Tax is approved by the qualified electors of the CF D and, if the qualified electors of the CFD do not approve the proposed Special Tax, the City shall return any funds which have not been committed for any authorized purpose by the time of the election.

The Deposit Agreement, in the form on file with the city clerk, is hereby approved. Each of the city manager and the director of finance of the City, acting alone, is hereby authorized and directed to accept from the Developer the Initial Advance and to request subsequent Advances from the Developer to pay Initial Costs, as such terms are defined in the Deposit Agreement, and to use the Advances in the manner contemplated by the Deposit Agreement. Each of the city manager and the director of finance, acting alone, is hereby authorized and directed to execut e the Deposit Agreement for and on behalf of the City, and to take all actions necessary to implement the Deposit Agreement.

Section 13. Acquisition Agreement. Section 53314.9 of the Act provides that, either before or after formation of the CFD, the City may accept work in-kind from any source, including, but not limited to, private persons or private entities, may provide, by resolution, for the use of that work in-kind for any authorized purpose and the City Council may enter into an agreement, by resolution, with the person or entity advancing the work in -kind, to reimburse the person or entity for the value, or cost, whichever is less, of the work in-kind, as determined by the City Council, with or without interest, under the conditions specified in the Act. Any work in-kind must be performed or constructed as if the work had been performed or constructed under the direction and supervision, or under the authority of, the City. The City and One Lake Holding LLC are parties to an acquisition agreement for CFD No. 2019-1 and anticipate entering into an agreement for the CFD under Section 53314.9 and will ask the City Council to approve such agreement on a later date.

Section 14. Joint Community Facilities Agreement. Section 53316.2 of the Act provides that a community facilities district may finance facilities to be owned or operated by a public agency other than the agency that created the district, or services to be provided by a public agency other than the agency that created the district, or any combination, only pursuant to a joint community facilities agreement or a joint exercise of powers agreement adopted pursuant to this section.

The city manager is hereby authorized and directed to execute on behalf of the City joint community facilities agreements with any entity that will own or operate any of the Facilities, as may be necessary to comply with the provisions of Section 53316.2(a) and (b) of the Act. The City Packet Page 75 of 812Attachment 2 Page 9 of 11

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Council hereby declares that such joint agreements will be beneficial to owner s of property in the area of the CFD.

Section 15. Tender. The City Council reserves to itself the right and authority set forth in Section 53344.1 of the Act, subject to any limitations set forth in any bond resolution or trust indenture related to the issuance of bonds.

Section 16. Approval of Underwriter. The firm of Stifel, Nicolaus & Company, Incorporated is hereby designated as underwriter to the City for any bonds to be issued for the CFD. Any and all compensation of such firm shall be contingent upon the issuance of bonds of the City for the CFD, and shall be payable from the proceeds of such bonds or by means of a discount upon the purchase of the bonds.

Section 17. Appointment of Consultants. The City Council hereby appoints Jones Hall, A Professional Law Corporation, as bond and disclosure counsel to the City, Public Financial Management, Inc., as municipal advisor to the City, and Goodwin Consulting Group, Inc., as special tax consultant to the City, in connection with formation of the CF D and issuance of bonds and other debt for the CFD. Each of the city manager and the finance director, acting alone, is hereby authorized to execute agreements with Jones Hall, Public Financial Management, Inc. and Goodwin Consulting Group, Inc. in substantially the forms and substance of the agreements on file with the city clerk.

The finance director is hereby authorized and directed to select a trustee or fiscal agent for the CFD and, if required by the underwriter, the Finance Director is hereby autho rized and directed to select an appraiser and/or an absorption consultant, in each case, on such terms as are acceptable to the finance director; provided that all compensation to any firms so selected shall be payable solely from money advanced pursuant to the Deposit Agreement or the proceeds of bonds or other debt issued by the City for the CFD. Each of the city manager and the director of finance, acting alone, is hereby authorized and directed to execute an agreement with said firms in the form acceptable to the city attorney.

Section 18. Further Action. The Mayor, the city manager, the finance director, the city clerk and all other officers and agents of the City are hereby authorized and directed to take all actions necessary or advisable to give effect to the transactions contemplated by this Resolution.

Section 19. No Obligation. This Resolution shall in no way obligate the City Cou ncil of the City to form the CFD. The formation of the CFD shall be subject to the approval of the City Council by resolution following the holding of the public hearing referred to above.

Packet Page 76 of 812Attachment 2 Page 10 of 11

RES. NO. 2023- 02

Page 12 ends

PASSED AND ADOPTED this 17th day of January, 2023, by the following vote:

AYES: MEMBERS: MOY / BERTANI / CARR /PANDURO / TONNESEN/ VACCARO / WILLIAMS

NOES: MEMBERS:

ABSENT: MEMBERS:

ABSTAIN: MEMBERS:

_________ _____________________________________________ MAYOR

ATTEST:

____________________________

CITY CLERK

Packet Page 77 of 812Attachment 2 Page 11 of 11

One Lake CFD No. 2023-1, IA No. 1 1 December 12, 2022

EXHIBIT B

IMPROVEMENT AREA NO. 1 OF THE

CITY OF FAIRFIELD
COMMUNITY FACILITIES DISTRICT NO. 2023-1
(ONE LAKE PLANNING AREA 5)

RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAX

A Special Tax applicable to each Assessor’s Parcel in Improvement Area No. 1 of the City of Fairfield Community Facilities District No. 2023-1 (One Lake Planning Area 5) shall be levied and collected according to the tax liability determined by the City or its designee, through the application of the appropriate amount or rate for Taxable Property, as described below. All of the property in Improvement Area No. 1, unless exempted by law or by the provisions of Section G below, shall be taxed for the purposes, to the extent, and in the manner herein provided.

A. DEFINITIONS

The terms hereinafter set forth have the following meanings:

“Accessory Unit” means a second residential unit of limited size (e.g., granny cottage, second unit) that shares a Parcel with a single-family detached unit.

“Acre” or “Acreage” means the land area of an Assessor’s Parcel as shown on an Assessor’s Parcel Map, or if the land area is not shown on an Assessor’s Parcel Map, the land area shown on the applicable Final Map or other parcel map recorded at the County Recorder’s Office.

“Act” means the Mello-Roos Community Facilities Act of 1982, as amended, being Chapter 2.5, (commencing with Section 53311), Part 1, Division 2 of Title 5 of the Government Code of the State of California.

“Administrative Expenses” means any or all of the following: the fees and expenses of any fiscal agent or trustee (including any fees or expenses of its counsel) employed in connection with any Bonds, and the expenses of the City in carrying out its duties with respect to the CFD and the Bonds, including, but not limited to, the levy and collection of the Special Tax, the fees and expenses of its legal counsel, charges levied by the County in connection with the levy and collection of Special Taxes, costs related to property owner inquiries regarding the Special Tax, costs associated with appeals or requests for interpretation associated with the Special Tax and this RMA, costs of the dissemination agent for the City and any party that has undertaken to provide continuing disclosure, amounts needed to pay rebate to the federal government with respect to the Bonds, costs associated with complying with any continuing disclosure requirements with respect to the Bonds and the Special Tax, costs associated with foreclosure and collection of delinquent Special Taxes and all other costs and expenses of the City and County in any way related to the establishment or administration of the CFD.

“Administrator” means the person or firm designated by the City to administer the Special Tax according to this RMA.

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One Lake CFD No. 2023-1, IA No. 1 2 December 12, 2022

“Airspace Parcel” means a parcel with an assigned Assessor’s Parcel number that constitutes vertical space of an underlying land Parcel.

“Assessor’s Parcel” or “Parcel” means a lot or parcel, including an Airspace Parcel, shown on an Assessor’s Parcel Map with an assigned Assessor’s Parcel number.

“Assessor’s Parcel Map” means an official map of the County Assessor designating Parcels by Assessor’s Parcel number.

“Authorized Facilities” means the public facilities authorized to be financed, in whole or in part, by the CFD, as identified in the list of authorized facilities and services included as Exhibit A to the Resolution of Formation adopted by the City Council when the CFD was formed.

“Authorized Services” means the public services authorized to be funded, in whole or in part, by the CFD, as identified in the list of authorized facilities and services included as Exhibit A to the Resolution of Formation adopted by the City Council when the CFD was formed.

“Bonds” means bonds or other debt (as defined in the Act), whether in one or more series, that are issued or assumed by or for Improvement Area No. 1 to finance Authorized Facilities.

“Building Permit” means a single permit or set of permits required to construct a residential or mixed-use structure. If a permit is issued for a foundation, parking, landscaping or other related facility or amenity, but a building permit has not yet been issued for the structure served by these facilities or amenities, such permit shall not be considered a “Building Permit” for purposes of application of the Special Tax herein.

“Capitalized Interest” means funds in any capitalized interest account available to pay interest on Bonds.

“CFD” means the City of Fairfield Community Facilities District No. 2023-1 (One Lake Planning Area 5).

“CFD Formation” means the date on which the Resolution of Formation to form the CFD and designate Improvement Area No. 1 was adopted by the City Council.

“City” means the City of Fairfield.

“City Council” means the City Council of the City of Fairfield.

“County” means the County of Solano.

“Developed Property” means, in any Fiscal Year, all Parcels of Taxable Property that are not Taxable Owners Association Property, Taxable Public Property, or Taxable Welfare Exemption Property for which a Building Permit for new construction was issued prior to June 30 of the preceding Fiscal Year.

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One Lake CFD No. 2023-1, IA No. 1 3 December 12, 2022
“Development Class” means, individually, Developed Property, Final Map Property, Undeveloped Property, Taxable Owners Association Property, Taxable Welfare Exemption Property, and Taxable Public Property.

“Expected Land Uses” means the number of Residential Units within each Special Tax Category and Acreage of Non-Residential Property expected within Improvement Area No. 1 at the time of CFD Formation, as identified in Attachment 2 of this RMA. Pursuant to Section D below, the Administrator shall update Attachment 2 each time there is a Land Use Change. Such update shall be maintained internally by the Administrator and shall not require recordation of an amended RMA.

“Expected Maximum Facilities Special Tax Revenues” means the amount of annual revenue for the entirety of Improvement Area No. 1 that would be available if the Maximum Facilities Special Tax was levied on the Expected Land Uses. The Expected Maximum Facilities Special Tax Revenues as of CFD Formation are shown in Attachment 2 of this RMA, and such amount may be adjusted pursuant to Section D of this RMA or if Parcels within Improvement Area No. 1 prepay all or a portion of the Special Tax obligation.

“Facilities Special Tax” means a special tax levied in any Fiscal Year to pay the Facilities Special Tax Requirement.

“Facilities Special Tax Requirement” means the amount necessary in any Fiscal Year (i) to pay principal and interest on Bonds which are due in the calendar year which begins in such Fiscal Year, (ii) to replenish reserve funds to the extent such replenishment has not been included in a computation of the Facilities Special Tax Requirement in a previous Fiscal Year, (iii) to cure any delinquencies in the payment of principal or interest on Bonds which have occurred in the prior Fiscal Year, (iv) to pay Administrative Expenses, and (v) to pay the costs of Authorized Facilities and Authorized Services to be funded directly from Facilities Special Tax proceeds to the extent that paying directly for such costs does not increase the Facilities Special Taxes levied on Final Map Property or Undeveloped Property. The amounts referred to in clauses (i) and (ii) of the preceding sentence may be reduced in any Fiscal Year by (i) interest earnings on or surplus balances in funds and accounts for Bonds to the extent that such earnings or balances are available to apply against debt service pursuant to the Indenture, (ii) proceeds from the collection of penalties associated with delinquent Facilities Special Taxes, and (iii) any other revenues available to pay debt service on the Bonds as determined by the Administrator.

“Final Map” means a final map, or portion thereof, approved by the City pursuant to the Subdivision Map Act (California Government Code Section 66410 et seq) that creates Single Family Lots. The term “Final Map” shall not include any large lot subdivision map, Assessor’s Parcel Map, or subdivision map or portion thereof that does not create Single Family Lots, including Assessor’s Parcels that are designated as remainder parcels.

“Final Map Property” means, in any Fiscal Year, all property for which a Final Map had recorded prior to June 30 of the preceding Fiscal Year and which has not yet become Developed Property, not including Taxable Owners Association Property, Taxable Welfare Exemption Property, or Taxable Public Property.

“First Bond Sale” means issuance of the first series of Bonds secured, in whole or in part, by Facilities Special Taxes levied and collected from Parcels in Improvement Area No. 1.

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One Lake CFD No. 2023-1, IA No. 1 4 December 12, 2022

“Fiscal Year” means the period starting July 1 and ending on the following June 30.

“Improvement Area No. 1” means Improvement Area No. 1 of the CFD.

“Indenture” means the bond indenture, fiscal agent agreement, trust agreement, resolution or other instrument pursuant to which Bonds are issued, as modified, amended, and/or supplemented from time to time, and any instrument replacing or supplementing the same.

“Land Use Change” means a proposed or approved change to the Expected Land Uses after CFD Formation.

“Maximum Facilities Special Tax” means the greatest amount of Facilities Special Tax that can be levied on a Parcel in any Fiscal Year as determined in accordance with Sections C and D below.

“Maximum Services Special Tax” means the greatest amount of Services Special Tax that can be levied on an Assessor’s Parcel in any Fiscal Year after the Transition Event, as determined in accordance with Sections C and D below.

“Maximum Special Tax” means, prior to the Transition Event, the Maximum Facilities Special Tax and, after the Transition Event, the Maximum Services Special Tax.

“Multi-Family Property” means, in any Fiscal Year, all Parcels of Developed Property for which Building Permits were issued for construction of a residential structure with five or more Residential Units that are offered for rent to the general public and cannot be purchased by individual homebuyers.

“Non-Residential Property” means, in any Fiscal Year, all Parcels of Developed Property that are not Single Family Attached Property, Single Family Detached Property, Multi-Family Property, Taxable Owners Association Property, Taxable Public Property, or Taxable Welfare Exemption Property.

“Owners Association” means a homeowners association or property owners association that provides services to, and collects assessments, fees, dues, or charges from, property within Improvement Area No. 1.

“Owners Association Property” means any property within Improvement Area No. 1 that is owned in fee or by easement by the Owners Association, not including any such property that is located directly under a residential structure.

“Proportionately” means, for each Development Class, that the ratio of the actual Special Tax levied in any Fiscal Year to the Maximum Special Tax authorized to be levied in that Fiscal Year is equal for all Parcels assigned to the Development Class.

“Public Property” means any property within Improvement Area No. 1 that is owned by the federal government, State of California, City, County, or other local governments or public agencies.

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One Lake CFD No. 2023-1, IA No. 1 5 December 12, 2022
“Required Coverage” means the amount by which the Expected Maximum Facilities Special Tax Revenues must exceed the Bond debt service and required Administrative Expenses, as set forth in the Indenture, Certificate of Special Tax Consultant, or other formation or bond document that sets forth the minimum required debt service coverage.

“Residential Unit” means an individual single-family detached unit, or an individual residential unit within a duplex, triplex, fourplex, townhome, or condominium structure. An Accessory Unit that shares a Parcel with a single-family detached unit shall not be considered a separate Residential Unit for purposes of this RMA.

“RMA” means this Rate and Method of Apportionment of Special Tax.

“Services Special Tax” means a special tax levied in any Fiscal Year after the Transition Event to pay the Services Special Tax Requirement.

“Services Special Tax Requirement” means the amount of revenue needed in any Fiscal Year after the Transition Event to pay for: (i) Authorized Services, (ii) Administrative Expenses, and (iii) amounts needed to cure delinquencies in the payment of Services Special Taxes which have occurred in the prior Fiscal Year. In any Fiscal Year, the Services Special Tax Requirement shall be reduced by surplus amounts available (as determined by the City) from the levy of the Services Special Tax in prior Fiscal Years, including revenues from collection of delinquent Services Special Taxes and associated penalties and interest.

“Single Family Attached Property” means, in any Fiscal Year, all Parcels of Developed Property for which a Building Permit was issued for construction of a residential structure consisting of two or more Residential Units that share common walls, have separate Assessor’s Parcel numbers assigned to them (except for a duplex unit, which may share a Parcel with another duplex unit), and may be purchased by individual homebuyers (which shall still be the case even if the Residential Units are purchased and subsequently offered for rent by the owner), including such residential structures that meet the statutory definition of a condominium contained in Civil Code Section 1351.

“Single Family Detached Property” means, in any Fiscal Year, all Parcels of Developed Property for which Building Permits were issued for construction of a Residential Unit that does not share a common wall with another Residential Unit.

“Single Family Lot” means an individual residential lot, identified and numbered on a recorded Final Map, on which a Building Permit has been or is permitted to be issued for construction of a single family detached unit or a structure with single family attached units without further subdivision of the lot and for which no further subdivision of the lot is anticipated pursuant to an approved tentative map.

“Special Tax” means, prior to the Transition Event, the Facilities Special Tax and, after the Transition Event, the Services Special Tax.

“Special Tax Category” means one of the ten categories of Single Family Attached Property, Single Family Detached Property, Multi-Family Property, and Non-Residential Property set forth in Table 1 in Section C below.

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One Lake CFD No. 2023-1, IA No. 1 6 December 12, 2022
“Square Footage” means the square footage of living area of a Residential Unit a s reflected on a Building Permit, condominium plan, certificate of occupancy, or other source available to the Administrator.

“Target Facilities Special Tax” means the Facilities Special Tax per Residential Unit for Residential Property or per Acre for Non-Residential Property for each Special Tax Category, as set forth in Table 1 below, that is used to determine the Expected Maximum Facilities Special Tax Revenues.

“Taxable Owners Association Property” means, in any Fiscal Year after the First Bond Sale, any Parcel of Owners Association Property that satisfies all three of the following conditions: (i) the Parcel had not been Owners Association Property on the date of the First Bond Sale; (ii) based on reference to Attachments 1 and 2 (as may be updated pursuant to Section D below), the Parcel was not anticipated to be Owners Association Property based on the Expected Land Uses, as determined by the Administrator; and (iii) if the Parcel were to be exempt from the Facilities Special Tax because it has become Owners Association Property, the Expected Maximum Facilities Special Tax Revenues would be reduced to a point at which Required Coverage could not be maintained.

“Taxable Property” means all Parcels within Improvement Area No. 1 that are not exempt from the Special Tax pursuant to law or Section G below.

“Taxable Public Property” means in any Fiscal Year after the First Bond Sale, any Parcel of Public Property that satisfies all three of the following conditions: (i) the Parcel had not been Public Property on the date of issuance of the First Bond Sale; (ii) based on reference to Attachments 1 and 2 (as may be updated pursuant to Section D below), the Parcel was not anticipated to be Public Property based on the Expected Land Uses, as determined by the Administrator; and (iii) if the Parcel were to be exempt from the Facilities Special Tax because it has become Public Property, the Expected Maximum Facilities Special Tax Revenues would be reduced to a point at which Required Coverage could not be maintained.

“Taxable Welfare Exemption Property” means in any Fiscal Year after the First Bond Sale, any Parcel of Welfare Exemption Property that satisfies all three of the following conditions: (i) the Parcel had not been Welfare Exemption Property on the date of issuance of the First Bond Sale; (ii) based on reference to Attachments 1 and 2 (as may be updated pursuant to Section D herein), the Parcel was not anticipated to be Welfare Exemption Property based on the Expected Land Uses, as determined by the Administrator; and (iii) if the Parcel were to be exempt from the Special Tax because it has become Welfare Exemption Property, the Expected Maximum Special Tax Revenues would be reduced to a point at which Required Coverage could not be maintained.

“Tentative Map” means the Canon Station tentative map approved by the City Council in October 2016, as amended in August 2018, and as may be further amended from time to time.

“Transition Event” shall be deemed to have occurred when the Administrator determines that the following events have occurred: (i) all Bonds secured by the levy and collection of Facilities Special Taxes in the CFD have been fully repaid, or there are sufficient revenues available to fully repay the Bonds in funds and accounts that, pursuant to the Indenture, will require such revenues to be applied to repay the Bonds; (ii) all Administrative Expenses from prior Fiscal Years have Packet Page 83 of 812Attachment 3 Page 6 of 19

One Lake CFD No. 2023-1, IA No. 1 7 December 12, 2022
been paid or reimbursed to the City; and (iii) there are no other Authorized Facilities that the City intends to fund with Bonds and Facilities Special Taxes.

“Transition Year” means the first Fiscal Year in which the Administrator determines that the Transition Event occurred in the prior Fiscal Year.

“Undeveloped Property” means, in any Fiscal Year, all Parcels of Taxable Property that are not Final Map Property, Developed Property, Taxable Owners Association Property, Taxable Public Property, or Taxable Welfare Exemption Property, as defined herein.

“Welfare Exemption Property” means, in any Fiscal Year, any Parcels in Improvement Area No. 1 that have received a welfare exemption under subdivision (g) of Section 214 of the Revenue and Taxation Code and for which such welfare exemption is still in place.

B. DATA FOR ADMINISTRATION OF SPECIAL TAX

Each Fiscal Year, the Administrator shall: (i) categorize each Parcel of Taxable Property as Developed Property, Final Map Property, Undeveloped Property, Taxable Owners Association Property, Taxable Public Property, or Taxable Welfare Exemption Property; (ii) for Developed Property, categorize each Parcel as Single Family Attached Property, Single Family Detached Property, Multi-Family Property, or Non-Residential Property; (iii) assign each Residential Unit to the appropriate Special Tax Category; (iv) determine if the Transition Event occurred in the prior Fiscal Year; and (v) determine the Facilities Special Tax Requirement or Services Special Tax Requirement for the Fiscal Year, as applicable. In addition, the Administrator shall, on an ongoing basis, monitor changes to the Tentative Map, track all Building Permits that have been issued, and review all condominium plans that have been recorded to determine if there are any proposed Land Use Changes that would affect the Expected Maximum Facilities Special Tax Revenues. If the Expected Maximum Facilities Special Tax Revenues will be revised pursuant to a proposed Land Use Change, the Administrator shall apply the steps set forth in Section D below.

In any Fiscal Year, if it is determined that: (i) a parcel map for property in Improvement Area No. 1 was recorded after January 1 of the prior Fiscal Year (or any other date after which the Assessor will not incorporate the newly-created Parcels into the then current tax roll), (ii) because of the date the parcel map was recorded, the Assessor does not yet recognize the new Parcels created by the parcel map, and (iii) one or more of the newly-created Parcels is in a different Development Class than other Parcels created by the subdivision, the Administrator shall calculate the Special Tax for the property affected by recordation of the parcel map by determining the Special Taxes that apply separately to the property within each Development Class, then applying the sum of the individual Special Taxes to the Parcel that was subdivided by recordation of the parcel map.

C. MAXIMUM SPECIAL TAX

1. Facilities Special Tax: Developed Property

The Maximum Facilities Special Tax for Parcels of Single Family Attached Property, Single Family Detached Property, Multi-Family Property, and Non-Residential Property shall be the greater of (i) the Target Facilities Special Tax set forth in Table 1 below, or (ii) the Maximum Facilities Special Tax determined pursuant to Section D.

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One Lake CFD No. 2023-1, IA No. 1 8 December 12, 2022

TABLE 1
Target Facilities Special Tax
Developed Property

Special Tax Category

Target Facilities
Special Tax
Before Transition Year
(Fiscal Year 2023-24)*

Target Facilities
Special Tax In and
After Transition Year
(Fiscal Year 2023-24)*

Single Family Detached Property
Greater than or equal to 3,000 Square Feet
2,800 – 2,999 Square Feet
2,600 – 2,799 Square Feet
2,400 – 2,599 Square Feet
2,200 – 2,399 Square Feet
Less than 2,200 Square Feet

$4,675 per Residential Unit
$4,255 per Residential Unit
$3,900 per Residential Unit
$3,690 per Residential Unit
$3,540 per Residential Unit
$3,280 per Residential Unit

$0 per Residential Unit
$0 per Residential Unit
$0 per Residential Unit
$0 per Residential Unit
$0 per Residential Unit
$0 per Residential Unit

Single Family Attached Property
Greater than or Equal to 1,800 Square Feet
Less than 1,800 Square Feet

$3,270 per Residential Unit
$3,125 per Residential Unit

$0 per Residential Unit
$0 per Residential Unit
Multi-Family Property $51,298 per Acre $0 per Acre
Non-Residential Property $51,298 per Acre $0 per Acre

* On July 1, 2024 and on each July 1 thereafter, each Target Facilities Special Tax shown in Table 1 shall be increased by an amount equal to 2.0% of the amount in effect for the prior Fiscal Year.

Once a Facilities Special Tax has been levied on a Parcel of Developed Property, the Maximum Facilities Special Tax applicable to that Parcel shall not be reduced in future Fiscal Years regardless of changes in land use on the Parcel, except (i) in the event of a partial prepayment pursuant to Section H, and (ii) pursuant to Section D below. Notwithstanding the foregoing, (i) if Bonds have yet to be issued, the Parcels can be assigned to the appropriate Special Tax Category, and the Administrator shall recalculate the Expected Maximum Facilities Special Tax Revenues based on the corresponding changes in revenues, and (ii) the actual Facilities Special Tax levied on the Parcel in any Fiscal Year may be less than the Maximum Facilities Special Tax if a lower Facilities Special Tax is calculated pursuant to Step 1 in Section E below.

2. Facilities Special Tax: Final Map Property, Undeveloped Property, Taxable Owners Association Property, Taxable Public Property, and Taxable Welfare Exemption Property

Prior to the Transition Year, the Maximum Facilities Special Tax for Final Map Property, Undeveloped Property, Taxable Owners Association Property, Taxable Public Property, and Taxable Welfare Exemption Property is $51,298 per Acre for Fiscal Year 2023-24. On July 1, 2024 and on each July 1 thereafter, the Maximum Facilities Special Tax for Final Map Property, Undeveloped Property, Taxable Owners Association Property, Taxable Public Property, and Taxable Welfare Exemption Property shall be increased by an amount equal to 2.0% of the amount in effect for the prior Fiscal Year. In the Transition Year and each Fiscal Year thereafter, no Facilities Special Tax shall be levied on Final Map Property, Undeveloped Property, Taxable Owners Association Property, Taxable Public Property, or Taxable Welfare Exemption Property unless there are delinquent Facilities Special Taxes on a Parcel, in which case such delinquent Facilities Special Taxes can continue to be levied against the Parcel until they are collected.

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One Lake CFD No. 2023-1, IA No. 1 9 December 12, 2022

3. Services Special Tax: Developed Property

Table 2 below identifies the Maximum Services Special Tax for Single Family Attached Property, Single Family Detached Property, Multi-Family Property, and Non-Residential Property.

TABLE 2
Maximum Services Special Tax
Developed Property

Special Tax Category

Maximum Services
Special Tax
Before Transition Year
(Fiscal Year 2023-24)*

Maximum Services
Special Tax In and
After Transition Year
(Fiscal Year 2023-24)*

Single Family Detached Property
Greater than or Equal to 3,000 Square Feet
2,800 – 2,999 Square Feet
2,600 – 2,799 Square Feet
2,400 – 2,599 Square Feet
2,200 – 2,399 Square Feet
Less than 2,200 Square Feet
$0 per Residential Unit
$0 per Residential Unit
$0 per Residential Unit
$0 per Residential Unit
$0 per Residential Unit
$0 per Residential Unit
$1,169 per Residential Unit
$1,064 per Residential Unit
$975 per Residential Unit
$923 per Residential Unit
$885 per Residential Unit
$820 per Residential Unit

Single Family Attached Property
Greater than or Equal to 1,800 Square Feet
Less than 1,800 Square Feet

$0 per Residential Unit
$0 per Residential Unit

$818 per Residential Unit
$781 per Residential Unit
Multi-Family Property $0 per Acre $12,823 per Acre
Non-Residential Property $0 per Acre $12,825 per Acre

* Beginning July 1, 2024 and each July 1 thereafter until the Transition Year, the Services Special Taxes in Table 2 shall be increased by 2.0% of the amount in effect in the prior Fiscal Year. On July 1 of the Transition Year and each July 1 thereafter, the Services Special Taxes and the Maximum Services Special Tax assigned to each Parcel shall be escalated by 4.0% of the amount in effect in the prior Fiscal Year.

4. Services Special Tax: Final Map Property, Undeveloped Property, Taxable Owners Association Property, Taxable Public Property, and Taxable Welfare Exemption Property

No Services Special Tax shall be levied on Final Map Property, Undeveloped Property, Taxable Owners Association Property, Taxable Public Property, or Taxable Welfare Exemption Property.

D. CHANGES TO MAXIMUM FACILITIES SPECIAL TAX

The Expected Maximum Facilities Special Tax Revenues shown in Attachment 2 were originally calculated based on the Expected Land Uses at CFD Formation. Attachment 2 is subject to modification upon the occurrence of Land Use Changes, as described below. The Administrator shall review all Land Use Changes and compare the revised land uses to the Expected Land Uses to evaluate the impact on the Expected Maximum Facilities Special Tax Revenues.

Prior to the First Bond Sale, if a Land Use Change is proposed or identified that will result in a change in the Expected Maximum Facilities Special Tax Revenues, no action will be needed Packet Page 86 of 812Attachment 3 Page 9 of 19

One Lake CFD No. 2023-1, IA No. 1 10 December 12, 2022
pursuant to this Section D. Upon approval of the Land Use Change, the Administrator shall update Attachment 2 to show the revised Expected Maximum Facilities Special Tax Revenues.

After the First Bond Sale, if a Land Use Change is proposed or identified, Steps 1 through 3 must be applied:

Step 1: By reference to Attachment 2 (which shall be updated by the Administrator each time a Land Use Change has been processed according to this Section D), the Administrator shall identify the Expected Maximum Facilities Special Tax Revenues prior to the Land Use Change.

Step 2: The Administrator shall calculate the Expected Maximum Facilities Special Tax Revenues that could be collected from Taxable Property in Improvement Area No. 1 if the Land Use Change occurs.

Step 3: If the revenues calculated in Step 2 are (i) higher than that determined in Step 1 or (ii) less than those calculated in Step 1, but the reduction in Expected Maximum Facilities Special Tax Revenues does not reduce debt service coverage on outstanding Bonds below Required Coverage, no further action is needed, and the Administrator shall update Attachment 2 to show the revised Expected Maximum Facilities Special Tax Revenues as calculated in Step 2.

If the revenues calculated in Step 2 are less than those calculated in Step 1, and the Administrator determines that the reduction in Expected Maximum Facilities Special Tax Revenues would reduce debt service coverage on outstanding Bonds below the Required Coverage, one of the following shall occur:

3.a. The landowner requesting the Land Use Change (the “Requesting Landowner”) may make a prepayment in an amount that will ensure that the reduced Expected Maximum Facilities Special Tax Revenues are sufficient to provide Required Coverage, as determined pursuant to, and as otherwise limited by, Section H below. If the Requesting Landowner notifies the Administrator that he/she would like to remedy the reduction by making a prepayment, such prepayment must be made by the earlier of (i) 30 days from the date of delivery of the prepayment estimate or (ii) the date of issuance of any Building Permits for any Parcel owned by the Requesting Landowner that was Final Map Property or Undeveloped Property at the time the Administrator prepared the prepayment estimate, or

3.b. If a prepayment is not requested or received, the Administrator shall:

i. Identify all remaining Parcels of Final Map Property and Undeveloped Property in Improvement Area No. 1 that are owned by the Requesting Landowner for which Building Permits have not yet been issued (collectively, the “Adjustment Property”) as determined by the Administrator;

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One Lake CFD No. 2023-1, IA No. 1 11 December 12, 2022
ii. Determine the number of Residential Units within each Special Tax Category that are expected on the Adjustment Property after the Land Use Change as determined by the Administrator;

iii. Increase the Target Facilities Special Tax proportionately for each Special Tax Category applicable to property owned by the Requesting Landowner (as determined by the Administrator) until, when applied to the Expected Land Uses on the Adjustment Property, the Maximum Facilities Special Tax revenues that can be collected within Improvement Area No. 1 are sufficient to maintain Required Coverage. The amount calculated shall thereafter be the Maximum Facilities Special Tax for each Residential Unit when the Adjustment Property becomes Developed Property, which amount shall increase by 2.0% beginning the following July 1 and each July 1 thereafter. The Administrator shall update Attachment 2 to reflect the Expected Land Uses, Maximum Facilities Special Taxes, and Expected Maximum Facilities Special Tax Revenues for the Adjustment Property.

Pursuant to this Section D, the Administrator may from time to time update Attachment 2 to reflect revised Expected Maximum Facilities Special Tax Revenues. Such update shall be maintained internally by the Administrator and shall not require recordation of an amended RMA.

The duties imposed on the Administrator to review Land Use Changes and to make the calculations set forth above, are intended only to facilitate administration of the Facilities Special Tax and to better assure the sufficiency of tax capacity to pay debt service on Bonds. Such duties are not intended to give any developer, subdivider, or owner of property any right to receive notice of the potential impact of Land Use Changes on the Facilities Special Tax applicable to a Parcel; and each developer, subdivider, or owner of property in Improvement Area No. 1 shall be responsible for understanding the impact thereof on the Facilities Special Tax applicable to such property.

E. METHOD OF LEVY OF THE SPECIAL TAX

1. Facilities Special Tax

Each Fiscal Year, the Administrator shall determine the Facilities Special Tax Requirement and levy the Facilities Special Tax on all Parcels of Taxable Property as follows:

Step 1: The Facilities Special Tax shall be levied Proportionately on each Parcel of Developed Property up to 100% of the Maximum Facilities Special Tax for each Parcel of Developed Property for such Fiscal Year until the amount levied is equal to the Facilities Special Tax Requirement prior to applying any available Capitalized Interest.

Step 2: If additional revenue is needed after Step 1 and after applying Capitalized Interest to the Facilities Special Tax Requirement, the Facilities Special Tax shall be levied Proportionately on each Parcel of Final Map Property up to 100% of the Maximum Facilities Special Tax for each Parcel of Final Map Packet Page 88 of 812Attachment 3 Page 11 of 19

One Lake CFD No. 2023-1, IA No. 1 12 December 12, 2022
Property for such Fiscal Year until the amount levied is equal to the Facilities Special Tax Requirement.

Step 3: If additional revenue is needed after Step 2, the Facilities Special Tax shall be levied Proportionately on each Parcel of Undeveloped Property up to 100% of the Maximum Facilities Special Tax for Undeveloped Property for such Fiscal Year until the amount levied is equal to the Facilities Special Tax Requirement.

Step 4: If additional revenue is needed after Step 3, the Special Tax shall be levied Proportionately on each Parcel of Taxable Welfare Exemption Property, up to 100% of the Maximum Facilities Special Tax for each Parcel of Taxable Welfare Exemption Property for such Fiscal Year until the amount levied is equal to the Facilities Special Tax Requirement.

Step 5: If additional revenue is needed after Step 4, the Facilities Special Tax shall be levied Proportionately on each Parcel of Taxable Owners Association Property, up to 100% of the Maximum Facilities Special Tax for each Parcel of Taxable Owners Association Property for such Fiscal Year until the amount levied is equal to the Facilities Special Tax Requirement.

Step 6: If additional revenue is needed after Step 5, the Facilities Special Tax shall be levied Proportionately on each Parcel of Taxable Public Property, up to 100% of the Maximum Facilities Special Tax for each Parcel of Taxable Public Property for such Fiscal Year until the amount levied is equal to the Facilities Special Tax Requirement.

2. Services Special Tax

Beginning in the Transition Year and each Fiscal Year thereafter, the Administrator shall determine the Services Special Tax Requirement and the Services Special Tax shall be levied Proportionately on each Parcel of Developed Property up to 100% of the Maximum Services Special Tax for each Parcel of Developed Property for such Fiscal Year until the amount levied is equal to the Services Special Tax Requirement.

F. MANNER OF COLLECTION OF SPECIAL TAX

The Special Tax shall be collected in the same manner and at the same time as ordinary ad valorem property taxes, provided, however, that partial prepayments of the Facilities Special Tax are permitted as set forth in Section H below and provided further that the City may directly bill the Special Tax, may collect the Special Tax at a different time or in a different manner, and may collect delinquent Special Taxes through foreclosure or other available methods.

The Facilities Special Tax shall be levied and collected through and including the earlier of (i) the Fiscal Year prior to the Transition Year or (ii) Fiscal Year 2073-74. Under no circumstances may the Facilities Special Tax on a Parcel in private residential use be increased in any Fiscal Year as a consequence of delinquency or default in payment of the Facilities Special Tax levied on another Parcel or Parcels by more than ten percent (10%) above the amount that would have been levied Packet Page 89 of 812Attachment 3 Page 12 of 19

One Lake CFD No. 2023-1, IA No. 1 13 December 12, 2022
in that Fiscal Year had there never been any such delinquencies or defaults. The Services Special Tax may be levied and collected in perpetuity commencing in the Transition Year.

G. EXEMPTIONS

Notwithstanding any other provision of this RMA, no Special Tax shall be levied on the following:
(i) Owners Association Property, Public Property, or Welfare Exemption Property except Taxable Owners Association Property, Taxable Public Property, and Taxable Welfare Exemption Property, as defined herein; and (ii) Parcels that are: (a) designated as permanent open space or common space on which no structure is permitted to be constructed, (b) owned by a public utility for an unmanned facility, or (c) subject to an easement that precludes any other use on the Parcels.

Notwithstanding the foregoing, if a Maximum Facilities Special Tax was assigned to a Parcel, and the entire Parcel meets the criteria in (a), (b) or (c) above, the Parcel shall remain subject to the levy of the Facilities Special Tax, unless the First Bond Sale has not occurred, or the Administrator determines that, if such Parcel becomes exempt from the Facilities Special Tax, the corresponding reduction in the Expected Maximum Facilities Special Tax Revenues would not reduce debt service coverage on outstanding Bonds below the Required Coverage. In either case, such property shall be categorized as Public Property, and the Administrator shall recalculate the Expected Maximum Facilities Special Tax Revenues to reflect the corresponding loss in revenues.

H. PARTIAL PREPAYMENT OF FACILITIES SPECIAL TAX

The following definitions apply to this Section H:

“Improvement Fund” means the account (regardless of its name) identified in the Indenture to hold funds which are available to acquire or construct Authorized Facilities.

“Outstanding Bonds” means all Previously Issued Bonds which remain outstanding, with the following exception: if a Facilities Special Tax has been levied against, or already paid by, an Assessor’s Parcel making a prepayment, and a portion of the Facilities Special Tax will be used to pay a portion of the next principal payment on the Bonds that remain outstanding (as determined by the Administrator), that next principal payment shall be subtracted from the total Bond principal that remains outstanding, and the difference shall be used as the amount of Outstanding Bonds for purposes of this prepayment formula.

“Previously Issued Bonds” means all Bonds that have been issued prior to the date of prepayment.

“Public Facilities Requirement” means $57 million or such other number as shall be determined by the City to be an appropriate estimate of the net construction proceeds that will be generated from all Bonds that have been or are expected to be issued on behalf of Improvement Area No. 1.

“Remaining Facilities Costs” means the Public Facilities Requirements, minus public facility costs funded by Previously Issued Bonds, Facilities Special Taxes, or prior prepayments.

Packet Page 90 of 812Attachment 3 Page 13 of 19

One Lake CFD No. 2023-1, IA No. 1 14 December 12, 2022
A property owner may prepay up to 75% of the Facilities Special Tax obligation applicable to a Parcel, provided that a prepayment may be made only if there are no delinquent Facilities Special Taxes with respect to such Parcel at the time of prepayment. An owner of a Parcel intending to prepay a portion of the Facilities Special Tax obligation shall provide the City with (i) written notice of intent to prepay, which shall identify the percentage of the Maximum Facilities Special Tax that is to be prepaid, (ii) payment of fees established by the City to process the prepayment request, and (iii) written evidence that there are no delinquent Special Taxes against the Parcel.

Within 30 days of receipt of such written notice, the City or its designee shall notify such owner of the prepayment amount for such Parcel. Prepayment must be made not less than 50 days prior to any redemption date for Bonds to be redeemed with the proceeds of such prepaid Facilities Special Taxes. Under no circumstance shall a prepayment be allowed that would reduce debt service coverage below the Required Coverage.

The Prepayment Amount shall be calculated as follows: (capitalized terms as defined below):

Bond Redemption Amount
Plus Remaining Facilities Amount
plus Redemption Premium
plus Defeasance Requirement
plus Administrative Fees and Expenses
less Reserve Fund Credit
equals Prepayment Amount

As of the proposed date of prepayment, the Prepayment Amount shall be determined by application of the following steps:

Step 1. Determine the Maximum Facilities Special Tax for the Parcel based on Expected Land Uses for the Parcel at the time the prepayment is calculated or, in the event of a prepayment pursuant to Step 3.a. in Section D, compute the amount by which the Expected Maximum Facilities Special Tax Revenues associated with a proposed Land Use Change would be reduced below the amount needed to maintain Required Coverage, and use this amount as the figure for purposes of this Step 1.

Step 2. Divide the Maximum Facilities Special Tax computed pursuant to Step 1 by the Expected Maximum Facilities Special Tax Revenues at the time of the prepayment calculation.

Step 3. Multiply the quotient computed in Step 2 by the percentage of the Maximum Facilities Special Tax that the property owner wants to prepay, which percentage shall not exceed 75%.

Step 4. Multiply the quotient computed pursuant to Step 3 by the Outstanding Bonds to compute the amount of Outstanding Bonds to be retired and prepaid (the “Bond Redemption Amount”).

Step 5. Compute the current Remaining Facilities Costs (if any).

Packet Page 91 of 812Attachment 3 Page 14 of 19

One Lake CFD No. 2023-1, IA No. 1 15 December 12, 2022
Step 6. Multiply the quotient computed pursuant to Step 3 by the amount determined pursuant to Step 5 to compute the amount of Remaining Facilities Costs to be prepaid (the “Remaining Facilities Amount”).

Step 7. Multiply the Bond Redemption Amount computed pursuant to Step 4 by the applicable redemption premium as shown in the Indenture, if any, on the Outstanding Bonds to be redeemed (the “Redemption Premium”).

Step 8. Compute the amount needed to pay interest on the Bond Redemption Amount starting with the last Bond interest payment date on which interest has been or will be paid by Facilities Special Taxes already levied until the earliest redemption date for the Outstanding Bonds. If Bonds are callable at, or prior to, the last Bond interest payment date on which interest has been or will be paid by Facilities Special Taxes already levied, Steps 8, 9 and 10 of this prepayment formula will not apply.

Step 9. Compute the amount of interest the City reasonably expects to derive from reinvestment of the Bond Redemption Amount plus the Redemption Premium from the first Bond interest payment date after which the prepayment has been received until the redemption date for the Outstanding Bonds.

Step 10. Subtract the amount computed pursuant to Step 9 from the amount computed pursuant to Step 8 (the “Defeasance Requirement”).

Step 11. The administrative fees and expenses associated with the prepayment will be determined by the Administrator and include the costs of computing the prepayment, redeeming Bonds and recording any notices to evidence the prepayment and the redemption (the “Administrative Fees and Expenses”).

Step 12. If, at the time the prepayment is calculated, the reserve fund is greater than or equal to the reserve requirement, and to the extent so provided in the Indenture, a reserve fund credit shall be calculated as a reduction in the applicable reserve fund for the Outstanding Bonds to be redeemed pursuant to the prepayment (the “Reserve Fund Credit”).

Step 13. The Facilities Special Tax prepayment is equal to the sum of the amounts computed pursuant to Steps 4, 6, 7, 10, and 11, less the amount computed pursuant to Step 12 (the “Prepayment Amount”).

Step 14. From the Prepayment Amount, the amounts computed pursuant to Steps 4, 7, and 10 shall be deposited into the appropriate fund as established under the Indenture and be used to retire Outstanding Bonds (including the payment of any accrued interest). The amount computed pursuant to Step 6 shall be deposited into the Improvement Fund. The amount computed pursuant to Step 11 shall be retained in the account or fund that is established to pay Administrative Expenses of the CFD.

Packet Page 92 of 812Attachment 3 Page 15 of 19

One Lake CFD No. 2023-1, IA No. 1 16 December 12, 2022
Once a partial prepayment has been received, an Amendment to Notice of Special Tax Lien shall be recorded against the Parcel to reflect the reduced Special Tax lien for the Parcel, which shall be equal to the portion of the Maximum Facilities Special Tax that was not prepaid, and the Administrator shall update Attachment 2 to show the revised Expected Maximum Facilities Special Tax Revenues. However, an Amendment to Notice of Special Tax Lien shall not be recorded until all Facilities Special Taxes levied on the Parcel in the current or prior Fiscal Years have been collected.

Notwithstanding the foregoing, if at any point in time the Administrator determines that the Maximum Facilities Special Tax revenue that could be collected from Taxable Property that remains subject to the Special Tax after the proposed prepayment would be less than the Required Coverage on Bonds that will remain outstanding after defeasance or redemption of Bonds from proceeds of the estimated prepayment, the amount of the prepayment shall be increased until the amount of Bonds defeased or redeemed is sufficient to reduce remaining annual debt service to a point at which Required Coverage is maintained.

I. APPEALS AND INTERPRETATIONS

For purposes of clarifying any vagueness or ambiguity in this RMA interpretations may be made by the City by ordinance or resolution without going through change proceedings and without voter approval.

Packet Page 93 of 812Attachment 3 Page 16 of 19

ATTACHMENT 1

Improvement Area No. 1
City of Fairfield
Community Facilities District No. 2023-1
(One Lake Planning Area 5)

Tentative Map
(Initial Approved and First Amendment)

Packet Page 94 of 812Attachment 3 Page 17 of 19

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OPARCEL P1G:\1668\1668-16\ACAD\TM\PA5\TM01.DWGTENTATIVE MAPONE LAKE - PLANNING AREA 5CITY OF FAIRFIELD SOLANO COUNTY CALIFORNIASCALE: 1" = DATE: MAY 21, 2021CIVIL ENGINEERSSURVEYORSPLANNERSSAN RAMONWWW.CBANDG.COMROSEVILLE(925) 866-0322(916) 788-4456OF 20 SHEETSSHEET NO.MANUEL CAMPOS PKWYPEABODY ROAD VAN
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LEISURE TOWN
ROAD

FRY ROADALAMO DRIVEC
L
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BANKROA

DCEMENT HILL ROADEAST TABORAVENUEAIRBASE PARKWAYWALTERS ROADRA I
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E 80TRAVIS AIRFORCE BASEMERIDIAN ROAD McCRORY ROADLEWIS ROADHAY ROADMARKELEY LANEGATE ROADCEMENT HILL ROADPROJECT SITEVICINITY MAP200'COVER SHEET & GENERAL NOTES6004002000Sheet List TableSheet NumberSheet TitleLEGENDDESCRIPTIONPROPOSEDEXISTINGABBREVIATIONS36CONTACTS & GENERAL NOTES:PARCEL SUMMARYPARCEL / LOTLAND USEAREAOWNERUNIT SUMMARYDENSITY CALCULATIONPacket Page 95 of 812Attachment 3 Page 18 of 19

ATTACHMENT 2

Improvement Area No. 1
City of Fairfield
Community Facilities District No. 2023-1
(One Lake Planning Area 5)
Expected Land Uses and Expected Maximum Facilities Special Tax Revenues

Land Use Category Square Footage
Number of
Units or
Acreage
Target
Facilities
Special Tax
(FY 2023-24) *
Expected
Maximum
Facilities Special
Tax Revenues
(FY 2023-24) *
Single Family Detached
Property ≥ 3,000 square feet 147 units $4,675 per
Residential Unit $654,150
Single Family Detached
Property 2,800 to 2,999 square feet 212 units $4,255 per Residential Unit $854,360
Single Family Detached
Property 2,600 to 2,799 square feet 0 units $3,900 per
Residential Unit $0
Single Family Detached
Property 2,400 to 2,599 square feet 210 units $3,690 per Residential Unit $724,500
Single Family Detached
Property 2,200 to 2,399 square feet 178 units $3,540 per Residential Unit $587,400
Single Family Detached
Property < 2,200 square feet 185 units $3,280 per
Residential Unit $564,250
Single Family Attached
Property ≥ 1,800 square feet 0 units $3,270 per
Residential Unit $0
Single Family Attached
Property < 1,800 square feet 0 units $3,125 per
Residential Unit $0
Multi-Family Property N/A 0 acres $51,298 per Acre $0
Non-Residential Property N/A 0 acres $51,298 per Acre $0 Expected Maximum Facilities Special Tax Revenues (FY 2023-24) * $3,601,105

* On July 1, 2024 and on each July 1 thereafter, the Target Facilities Special Tax and Expected Maximum Facilities Special Tax Revenues shown above shall be increased by an amount equal to 2.0% of the amount in effect for the prior Fiscal Year.

Packet Page 96 of 812Attachment 3 Page 19 of 19

CITY OF FAIRFIELD

RESOLUTION NO. 2023-03

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF FAIRFIELD TO INCUR BONDED AND OTHER INDEBTEDNESS (“RESOLUTION OF INTENTION TO INCUR DEBT”)

WHEREAS, pursuant to the Mello-Roos Community Facilities Act of 1982, as amended, Chapter

2.5 of Part 1 of Division 2 of Title 5 of the California Government Code (the “Act”), the City Council has this date adopted its “Resolution of Intention to Establish a Community Facilities District, One or More Improvement Areas and a Future Annexation Area, and Determining Other Related Matters” (the “Resolution of Intention to Establish”), stating its intention to form (i) “City of Fairfield Community Facilities District No. 2023-1 (One Lake Planning Area 5)” (the “CFD”), (ii) “Improvement Area No. 1 of the City of Fairfield Community Facilities District No. 2023 -1 (One Lake Planning Area 5)” (“Improvement Area No. 1”) and (iii) a future annexation area for the CFD (the “Future Annexation Area”) for the purpose of financing certain public improvements (the “Facilities”) and services, as further provided in that Resolution of Intention to Establish; and

WHEREAS, in the Resolution of Intention to Establish, the City Council determined that it may be necessary to designate additional improvement areas when territory in the Future Annexation Area annexes into the CFD (each, a “Future Improvement Area”); and

WHEREAS, In the Resolution of Intention to Establish, the City Council found that the CFD, if established, and the City of Fairfield Community Facilities District No. 2019 -1 (One Lake) ("CFD No. 2019-1"), and each improvement area thereof, will be authorized to finance any facilities that are authorized by the Act and that are required as a condition of development of the One Lake project (the "Project"); and

WHEREAS, the City Council estimates the amount required for the financing of the costs of the Facilities in the territory of the Project to be the sum of not to exceed $105,000,000; and

WHEREAS, in order to finance the costs of the Facilities it is necessary to incur bonded indebtedness in one or more series in the aggregate amount of not to exceed $105,000,000 on behalf of the CFD; and

WHEREAS, in order to finance the costs of the Facilities it is further necessary to incur other debt (as defined in the Act), although any such debt shall not be subject to the limitations on bonded indebtedness set forth above; and

WHEREAS, United States Income Tax Regulations section 1.150-2 provides generally that proceeds of tax-exempt debt are not deemed to be expended when such proceeds are used for reimbursement of expenditures made prior to the date of issuance of such debt unless certain procedures are followed, one of which is a requirement that (with certain exceptions), prior to the payment of any such expenditure, the issuer declares an intention to reimburse such expenditure; and
Packet Page 97 of 812Attachment 4 Page 1 of 3

RES. NO. 2023-03

Page 2 ends

WHEREAS, it is in the public interest and for the public benefit that the City declares its of ficial intent to reimburse the expenditures referenced herein.

NOW, THEREFORE, THE COUNCIL OF THE CITY OF FAIRFIELD HEREBY RESOLVES:

Section 1. Bonded Debt and Other Debt. In order to finance the costs of the Facilities, it is necessary for the City to incur bonded indebtedness in the following amounts:

(i) For Improvement Area No. 1, an aggregate amount not to exceed $90,000,000 (the “Improvement Area No. 1 Bonded Indebtedness Limit”).

(ii) For the portion of the CFD that is not in Improvement Area No. 1, an amount not to exceed $15,000,000 (the “Non-Improvement Area No. 1 Bonded Indebtedness Limit”).

It is further necessary to incur other debt (as defined in the Act), in one or more series, within the boundaries of the proposed CFD, although any such debt shall not be subject to the limitations on bonded indebtedness set forth above.

Section 2. Purposes of Bonded Debt and Other Debt. The bonded indebtedness and other debt are proposed to be incurred for the purpose of financing the costs of the Facilities, including acquisition and improvement costs and all costs incidental to or connected with the accomplishment of said purposes and of the financing thereof, as permitted by Section 53345.3 of the Act.

The City hereby declares that it reason ably expects (i) to pay certain costs of the Facilities prior to the date of issuance of the bonded indebtedness or other debt and (ii) to use a portion of the proceeds of the bonded indebtedness or other debt for reimbursement of expenditures for the Facilities that are paid before the date of issuance of the bonded indebtedness or other debt.

This declaration is supplemental to the City’s reimbursement declaration pursuant to Resolution No. 2019-43 related to CFD 2019-1.

Section 3. Terms of Bonds and other Debt. The City Council, acting as legislative body for the CFD, intends to authorize the issuance and sale of bonds with respect to Improvement Area No. 1 and any Future Improvement Areas in one or more series bearing interest payable semi - annually or in such other manner as the City Council shall determine, at a rate not to exceed the maximum rate of interest as may be authorized by applicable law at the time of sale of such bonds, and maturing not to exceed 40 years from the date of the issuance of the bonds.

The City Council, acting as legislative body for the CFD, further intends to authorize the issuance and sale of debt in one or more series bearing interest at a rate not to exceed the maximum rate of interest as may be authorized by applicable law at the time of sale of such bonds.

Packet Page 98 of 812Attachment 4 Page 2 of 3

RES. NO. 2023-03

Page 3 ends

Section 4. Public Hearing. Tuesday, February 21, 2023, at 6:00 p.m. or as soon as possible thereafter, in the City Council Chamber, 1000 Webster Street, Fairfield, California, be, and the same are hereby appointed and fixed as the time and place when and where the City Council, as legislative body for the CFD, will conduct a public hearing on the proposed issuance of bonded indebtedness and other debt and consider and finally determine whether the public interest, convenience and necessity require the issuance of bonded indebtedness and other debt of the City on behalf of the CFD with respect to Improvement Area No. 1 and the Future Improvement Areas.

Section 5. Notices of Hearing. The city clerk is hereby directed to cause notice of the public hearing to be given by publication one time in a newspaper of general circulation circulated within the CFD. The publication of the notice shall be completed at least seven (7) days before the date specified above for the public hearing. The notice shall be substantially in the form specified in Section 53346 of the Act.

Section 6. No Obligation. This Resolution shall in no way obligate the City Council of the City to form the CFD or to issue bonds or other debt f or the CFD. Issuance of the bonds and other debt shall be subject to the approval of this City Council by resolution following the holding of the public hearing referred to above.

PASSED AND ADOPTED this 17th day of January, 2023, by the following vote:

AYES: MEMBERS: MOY / BERTANI / CARR /PANDURO / TONNESEN/ VACCARO / WILLIAMS

NOES: MEMBERS:

ABSENT: MEMBERS:

ABSTAIN: MEMBERS:

_________ _____________________________________________ MAYOR

ATTEST:

____________________________

CITY CLERK
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VANDEN ROADCANON ROAD
PEABODY ROADPUTAH SOUTH CANALDECEMBER 2022
LEGEND
600'

GRAPHIC SCALE
2,400'0'1,200'600'300'600'0'
SCALE: 1" =

PROPOSED BOUNDARIES OF

CITY OF FAIRFIELD
COMMUNITY FACILITIES DISTRICT NO. 2023-1
(ONE LAKE PLANNING AREA 5)
1668-016 SHEET 1 OF 1

COUNTY OF SOLANO STATE OF CALIFORNIA

CLERK'S MAP FILING STATEMENT

CLERK'S MAP STATEMENT

COUNTY RECORDER'S STATEMENT
NOTES

CIVIL ENGINEERS SURVEYORS PLANNERS

SAN RAMON
WWW.CBANDG.COM

ROSEVILLE
(925) 866-0322
(916)788-4456
Packet Page 105 of 812Attachment 6 Page 1 of 1

Agenda Item No: 8.

AGENDA REPORT
DATE:January 17, 2023
TO:Mayor and City Council
FROM:David Gassaway, City Manager
SUBJECT:Resolution 202304 of the City Council of the City of Fairfield Approving an Amendment to Resolution 99302 Revising the Structure and Duties of the Fairfield Golf Advisory Board
RECOMMENDED ACTION
Adopt resolution.

STATEMENT OF ISSUE
Several of the previous items listed within Resolution 99302 are no longer relevant, i.e., in December 2021, the City Council eliminated term limits for all boards, commissions, and committees. The proposed resolution revises the structure and duties of the Fairfield Golf Advisory Board (GAB).

DISCUSSION
In January 2022, the staff management and oversight of the GAB transitioned from Public Works to Parks & Recreation. The parks & recreation director provided the GAB with a review of the evolution and current practices of the board and parliamentary procedure. Through a series of work sessions with the GAB, staff and board members collectively developed a full revision of Resolution 99302 to convey the new basis of the GAB structure, term, and role.

FINANCIAL IMPACT
There are no defined financial impacts; however, with modification to quarterly meetings, costs associated with staff resources may be reduced.

PUBLIC CONTACT/ADVISORY BODY RECOMMENDATION
The language in the proposed resolution was established through work sessions with the GAB. The final draft was presented to the board, and all members present (six of seven board members) recommended submittal to City Council for adoption.

ALTERNATIVE ACTION
Packet Page 106 of 812

Agenda Item No: 8.AGENDA REPORTDATE:January 17, 2023 TO:Mayor and City CouncilFROM:David Gassaway, City ManagerSUBJECT:Resolution 202304 of the City Council of the City of Fairfield Approving an Amendmentto Resolution 99302 Revising the Structure and Duties of the Fairfield Golf AdvisoryBoardRECOMMENDED ACTIONAdopt resolution.STATEMENT OF ISSUESeveral of the previous items listed within Resolution 99302 are no longer relevant, i.e., in December2021, the City Council eliminated term limits for all boards, commissions, and committees. Theproposed resolution revises the structure and duties of the Fairfield Golf Advisory Board (GAB).DISCUSSIONIn January 2022, the staff management and oversight of the GAB transitioned from Public Works toParks & Recreation. The parks & recreation director provided the GAB with a review of the evolutionand current practices of the board and parliamentary procedure. Through a series of work sessionswith the GAB, staff and board members collectively developed a full revision of Resolution 99302 toconvey the new basis of the GAB structure, term, and role.FINANCIAL IMPACTThere are no defined financial impacts; however, with modification to quarterly meetings, costsassociated with staff resources may be reduced.PUBLIC CONTACT/ADVISORY BODY RECOMMENDATIONThe language in the proposed resolution was established through work sessions with the GAB. Thefinal draft was presented to the board, and all members present (six of seven board members)recommended submittal to City Council for adoption.

ALTERNATIVE ACTION
Provide staff direction as appropriate.

STAFF CONTACT
Kristina Kaunzinger, Parks & Recreation Director
(707) 4287470
[email protected]
COORDINATED WITH
City Attorney's Office, City Manager's Office
ATTACHMENTS:

Description
Attachment 1: Proposed Resolution
Attachment 2: Resolution No. 99302
REVIEWERS:

Reviewer Action Date
Kaunzinger, Kristina Approved 12/28/2022 5:40 PM
Beavers, Esther Approved 12/29/2022 11:04 AM
Beavers, Esther Approved 12/29/2022 11:04 AM
Packet Page 107 of 812

CITY OF FAIRFIELD

RESOLUTION NO. 2023-04

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF FAIRFIELD APPROVING AN AMENDMENT TO RESOLUTION 99-302 REVISING THE STRUCTURE AND DUTIES OF THE FAIRFIELD GOLF

ADVISORY BOARD

WHEREAS, Resolution 90-89 established a five-member Rancho Solano Golf Course Advisory Board; and

WHEREAS, Resolution 93-40 renamed and revised the Fairfield Golf Advisory Board (GAB), and Resolution 99-302 revised the role and responsibilities of the GAB; and

WHEREAS, in December 2021, the City Council eliminated term limits and in 2022 held work sessions to discuss revisions to the structure and duties of the GAB.

NOW, THEREFORE, THE COUNCIL OF THE CITY OF FAIRFIELD HEREBY RESOLVES:

Section 1. The Fairfield Golf Advisory Board is the official name and title of the advisory board and is referenced as the “GAB.”

Section 2. The purpose of the GAB is to assist in the promotion and development of golf for all ages in the community at both Paradise Valley Golf Course and Rancho Solano Golf Course.

Section 3. The members of the GAB shall be appointed by the mayor with the approval of the council. The term of office shall be four years, beginning on January 1 and ending on December

31. There are no term limits.

Section 4. The GAB is comprised of seven members reporting to the Fairfield City Department designated by the city manager. Members must be residents of Fairfield and must be active participants at either or both courses. A balance of board members should be selected from all sections of the community of Fairfield with the preference of having one member representing each council district.

Section 5. The GAB shall hold at least one regular meeting quarterly.

Section 6. Annually and at the first regular meeting, the GAB members shall select from and among them a chair and vice-chair to serve for one year at the pleasure of the board.

Section 7. Failure of a member to attend two consecutive regular meetings of the GAB without the consent of the group shall be deemed vacated.

Section 8. While the primary role of the GAB is to assist in the promotion and development of golf in the community and encourage golf awareness, participation, and support for both Rancho Packet Page 108 of 812Attachment 1 Page 1 of 2

RES. NO. 2023-04

Page 2 ends

Solano and Paradise Valley Golf Courses and while the day-to-day operation is led by the City’s contract management service provider, the GAB plays a critical role in repr esenting the community’s interest with respect to safeguarding and ensuring access to the golf courses and related facilities. This is accomplished through an objective perspective as both golf parti cipant and advocate of furthering the City’s mission and goals for expanding programming and general use of the public facilities.

Section 9. GAB responsibilities may include the following:
a. Assisting with prioritization of capital improvement projects b. Reviewing financials and recommending proposed fee adjustments c. Providing observation and making recommendations to the department regarding operations and maintenance of the golf courses and restaurants
d. Suggesting and/or reviewing proposed modifications to the Golf Operating Manual e. Suggesting and/or reviewing various proposed policy and procedure changes f. Serving as volunteers at signature golf course fundraising events g. Advocating the use of facilities – public and private events, activities, and programming h. Serving on Request for Proposals/Request for Qualifications selection panel

Section 10. GAB representative(s) to provide semi-annual report to the council.

PASSED AND ADOPTED this 17th day of January, 2023, by the following vote:

AYES: MEMBERS: MOY / BERTANI /CARR / PANDURO / TONNESEN / VACCARO / WILLIAMS

NOES: MEMBERS:

ABSENT: MEMBERS:

ABSTAIN: MEMBERS:

_________ _____________________________________________ MAYOR

ATTEST:

____________________________

CITY CLERK
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Agenda Item No: 9.

AGENDA REPORT
DATE:January 17, 2023
TO:Mayor and City Council
FROM:David Gassaway, City Manager
SUBJECT:Resolution 202305 of the City Council of the City of Fairfield Approving the Plans and Specifications and Awarding a Contract to Dirt & Aggregate Interchange, Inc. for the Fairfield Highway Safety Improvement Program Cycle 9 Guardrail Project, Federal Aid Project No. HSIPL 5132052 and Authorizing an Update to the Fiscal Year 20222023 Budget
RECOMMENDED ACTION
Adopt resolution.

STATEMENT OF ISSUE
The purpose of the Fairfield Highway Safety Improvement Program (HSIP) Cycle 9 Guardrail project is to replace/modify guardrails within the City of Fairfield that do not meet current standards and that have been significantly worn down to the point where they can no longer serve their intended purpose. This resolution approves the plans and specifications for the Fairfield HSIP Cycle 9 Guardrail Project – Federal Aid No. HSIPL 5132052 (Project) and awards a contract to Dirt & Aggregate Interchange, Inc. of Fairview, Oregon (Dirt & Aggregate) in the amount of $912,691.00.

DISCUSSION
In 2018, the City partnered with Solano Transportation Agency (STA) in securing $655,400 in HSIP grant funds to upgrade existing guardrails throughout the City. City staff listed a set of locations where guardrails need to be replaced/modified because they are either severely damaged or nonstandard.

The guardrails at these locations act as a safety barrier that prevent motorists from driving off bridges, falling off hillsides, and striking objects such as powerlines and traffic signal poles.

During the design phase of the Project, the number of locations listed for guardrail improvements was reduced from 25 to 22. A list and map of the guardrail locations are provided in Attachment 1. The locations removed are described as follows:

Location 1 (Chuck Hammond Drive at Putah Creek Canal) and Location 4 (Cement Hill Rd at Putah Creek Canal) was removed for the following reasons:

The guardrails at these locations are adjacent to Bureau of Reclamation (BOR) and Solano Irrigation District (SID) Property. To bring these guardrails to standard, the guardrails would need to be extended to the point where the guardrails would block off the BOR’s and SID’s access to their property.

The City’s proposed design brought the guardrails to standard and provided a new access point.

The BOR and SID determined that the new access point would have negative impacts to their operation so the design was not approved by the BOR.

Because the design was not approved, the City had to remove Location 1 and 4 from the Project.

Location 25 (Business Center Dr. at Neitzel Rd.)
A guardrail at this location was located adjacent to private property and planned for replacement with a barricade. The guardrail was removed by the property owner so that a driveway can be installed.

In 2022, staff opened bids for multiple projects that showed significant increase in pricing due to inflation. With inflated pricing, City staff estimated that the original HSIP grant amount of $655,400 would only cover 14 of the 22 guardrail locations. Based off this estimate, staff advertised the Project with a base bid (determination of award) that accounted for 14 locations with 8 additive alternates that account for the remaining 8 locations. The 14 locations within the base bid were prioritized by traffic safety, location, collision history, and severity of damages.

Prior to advertising the Project, staff notified the California Department of Transportation (Caltrans), administrators of the HSIP grant, to let them know the City may not be able to award all 22 locations depending on the bid results.

Bids for the Project were received from three contractors and opened on November 8, 2022. The base bid ranged in price from $678,888.00 to $927,777.00. The engineer’s estimate for the base bid is $700,800. The apparent low base bid was submitted by Dirt & Aggregate. Dirt & Aggregate’s bid schedule is broken down in the table below.

Description Dirt and Aggregate
Interchange, Inc.

Base Bid $678,888.00
Alternate A – Location 2 $86,677.00
Alternate B – Location 3 $21,198.00
Alternate C – Location 6 $21,248.00
Alternate D – Location 10 $23,698.00
Alternate E – Location 16 $22,898.00
Alternate F – Location 17 $20,888.00
Alternate G – Location 18 $16,398.00
Alternate H – Location 19 $20,798.00
Total (Base Bid + Alternate A H)$912,691.00
Staff reviewed Dirt & Aggregate’s bid and determined that the bid was responsible and responsive.

Staff contacted Caltrans informing them of Dirt & Aggregate’s bid and how the original HSIP grant amount can only cover the base bid and not the alternates. Because the City and Caltrans would like to upgrade all the guardrails, staff coordinated with Caltrans to secure additional unspent grant funding to complete the project. Caltrans has increased the HSIP grant from $655,400 to $1,000,000 with the conditions that the City commit local funds to cover:

1. $15,000 of the construction engineering cost

2. $3,960 to meet a 10% construction contingency.

FINANCIAL IMPACT
The construction authorization for this Project will be $1,003,960, which is the total bid amount, plus a Packet Page 113 of 812

Agenda Item No: 9.AGENDA REPORTDATE:January 17, 2023 TO:Mayor and City CouncilFROM:David Gassaway, City ManagerSUBJECT:Resolution 202305 of the City Council of the City of Fairfield Approving the Plans andSpecifications and Awarding a Contract to Dirt & Aggregate Interchange, Inc. for theFairfield Highway Safety Improvement Program Cycle 9 Guardrail Project, Federal AidProject No. HSIPL 5132052 and Authorizing an Update to the Fiscal Year 20222023BudgetRECOMMENDED ACTIONAdopt resolution.STATEMENT OF ISSUEThe purpose of the Fairfield Highway Safety Improvement Program (HSIP) Cycle 9 Guardrail project isto replace/modify guardrails within the City of Fairfield that do not meet current standards and that havebeen significantly worn down to the point where they can no longer serve their intended purpose. Thisresolution approves the plans and specifications for the Fairfield HSIP Cycle 9 Guardrail Project –Federal Aid No. HSIPL 5132052 (Project) and awards a contract to Dirt & Aggregate Interchange, Inc.of Fairview, Oregon (Dirt & Aggregate) in the amount of $912,691.00. DISCUSSIONIn 2018, the City partnered with Solano Transportation Agency (STA) in securing $655,400 in HSIPgrant funds to upgrade existing guardrails throughout the City. City staff listed a set of locations whereguardrails need to be replaced/modified because they are either severely damaged or nonstandard. The guardrails at these locations act as a safety barrier that prevent motorists from driving off bridges,falling off hillsides, and striking objects such as powerlines and traffic signal poles. During the design phase of the Project, the number of locations listed for guardrail improvements wasreduced from 25 to 22. A list and map of the guardrail locations are provided in Attachment 1. Thelocations removed are described as follows:Location 1 (Chuck Hammond Drive at Putah Creek Canal) and Location 4 (Cement Hill Rd atPutah Creek Canal) was removed for the following reasons:The guardrails at these locations are adjacent to Bureau of Reclamation (BOR) and SolanoIrrigation District (SID) Property. To bring these guardrails to standard, the guardrails wouldneed to be extended to the point where the guardrails would block off the BOR’s and SID’saccess to their property. The City’s proposed design brought the guardrails to standard and provided a new accesspoint.The BOR and SID determined that the new access point would have negative impacts totheir operation so the design was not approved by the BOR.Because the design was not approved, the City had to remove Location 1 and 4 from theProject. Location 25 (Business Center Dr. at Neitzel Rd.)A guardrail at this location was located adjacent to private property and planned forreplacement with a barricade. The guardrail was removed by the property owner so that adriveway can be installed.In 2022, staff opened bids for multiple projects that showed significant increase in pricing due toinflation. With inflated pricing, City staff estimated that the original HSIP grant amount of $655,400would only cover 14 of the 22 guardrail locations. Based off this estimate, staff advertised the Projectwith a base bid (determination of award) that accounted for 14 locations with 8 additive alternates thataccount for the remaining 8 locations. The 14 locations within the base bid were prioritized by trafficsafety, location, collision history, and severity of damages. Prior to advertising the Project, staff notified the California Department of Transportation (Caltrans),administrators of the HSIP grant, to let them know the City may not be able to award all 22 locationsdepending on the bid results.Bids for the Project were received from three contractors and opened on November 8, 2022. The basebid ranged in price from $678,888.00 to $927,777.00. The engineer’s estimate for the base bid is$700,800. The apparent low base bid was submitted by Dirt & Aggregate. Dirt & Aggregate’s bidschedule is broken down in the table below. Description Dirt and AggregateInterchange, Inc.Base Bid $678,888.00Alternate A – Location 2 $86,677.00Alternate B – Location 3 $21,198.00Alternate C – Location 6 $21,248.00Alternate D – Location 10 $23,698.00Alternate E – Location 16 $22,898.00Alternate F – Location 17 $20,888.00Alternate G – Location 18 $16,398.00Alternate H – Location 19 $20,798.00Total (Base Bid + Alternate A H)$912,691.00Staff reviewed Dirt & Aggregate’s bid and determined that the bid was responsible and responsive. Staff contacted Caltrans informing them of Dirt & Aggregate’s bid and how the original HSIP grantamount can only cover the base bid and not the alternates. Because the City and Caltrans would like toupgrade all the guardrails, staff coordinated with Caltrans to secure additional unspent grant funding tocomplete the project. Caltrans has increased the HSIP grant from $655,400 to $1,000,000 with theconditions that the City commit local funds to cover:1. $15,000 of the construction engineering cost2. $3,960 to meet a 10% construction contingency.

FINANCIAL IMPACT
The construction authorization for this Project will be $1,003,960, which is the total bid amount, plus a 10% contingency ($912,691.00 total bid + $91,269 contingency). Funding for this Project is captured in the Capital Streets Fund (Fund 252, Organization Code 60199, Project 10135). The capital streets fund includes $1,000,000 in federal HSIP grants and the remaining amount of $3,960 will be covered through local funding.

A budget adjustment and transfer of $20,000 is required to fund the remaining construction contingency and construction engineering. Transfers to the Capital Streets Fund (Fund 252) of $20,000 from Senate Bill 1 (Fund 055) will be used to fund this adjustment. Finance has confirmed that adequate reserves in Fund 055 exist and that no projects will be jeopardized by this additional expenditure.

PUBLIC CONTACT/ADVISORY BODY RECOMMENDATION
A notice inviting bids for this Project was advertised twice in the Daily Republic newspaper on October 5 and October 12, 2022. In addition, the City distributed a notice of the Project and/or a complete bid package to a total of 17 builder’s exchanges in the State of California covering the area from Redding to San Jose, and Stockton to Santa Rosa. A total of three contractors purchased bid documents for this project.

ALTERNATIVE ACTION
The council may choose not to award the contract, reject all bids, and restart the bid process thus resulting in a significant delay in the construction project schedule. Not awarding the contract would delay the Project schedule as required by the grant, potentially jeopardizing grant funding.

STAFF CONTACT
Phil Layoso, Assistant Engineer
(707) 4287505
[email protected]
COORDINATED WITH
Finance Department
ATTACHMENTS:

Description
Guardrail Vicinity Map
Bid Results
Proposed Resolution
REVIEWERS:

Reviewer Action Date
Kaushal, Paul Approved 1/3/2023 4:47 PM
Beavers, Esther Approved 1/4/2023 11:02 AM
Beavers, Esther Approved 1/4/2023 12:26 PM
Packet Page 114 of 812

1 2
3 4
5 6
7 8149
13 1012
11 15
24 Guardrail - Vicinity Map
Location Description
1 - Peabody Rd 800 ft south of Chuck Hammond Dr at Putah Creek Canal (removed from scope)
2 - Huck Rd 1600 ft from Cement Hill Rd
3 - Cement Hill Rd WB across from Vacavalley RC Club
4 - Cement Hill Rd at Putah Creek Canal (removed from scope) 5 - Clay Bank at Manuel Campos Pkwy
6 - Manuel Campos Pkwy/Clay Bank Rd at Portland Dr
7 - WB Air Base Pkwy at Walter Rd
8 - WB Air Base Pkway at 1300 ft west of Walters Rd
9 - WB Air Base Pkwy at 2600 ft west of Clay Bank Rd
10 - WB Air Base Pkwy at Dover Ave
11 - WB Air Base Pkwy at 1000 ft west of Heath Ave
12 - EB Air Base Pkwy on ramp from North Texas St
13 - EB Air Base Pkwy at 26000 ft East of Dover Ave
14 - EB Air Base Pkwy at 3750 ft East of Clay Bank Rd
15 - Martin Rd at 2499 Martin Rd
24 - 3059 Rockville Rd at Bridge Ledgewood bike bath
Packet Page 115 of 812Attachment 1 Page 1 of 2

2322
21 25
19 18
20 17
16 Guardrail - Vicinity Map
Location Description
16 - Lopes 870 ft south of Gold Hill Rd
17 - Lopes 550 ft north of Silver Creek Rd at American Canyon Creek Trail 18 -192 Red Top next to Jack in the Box
19 - Red Top Rd across from dairy protecting power lines 20 - Lopes Rd at Bridgeport
21 - Central Wy at Grobric Ct
22 - 4464 Central Wy guardrail missing from north side
23 - Bridge on Link Rd, east of Starwood Ct
25 - Business Center at Green Valley Rd (removed from scope) Packet Page 116 of 812Attachment 1 Page 2 of 2

City of Fairfield
Public Works Department

Fairfield HSIP Cycle 9 Guardrail Replacement Project
Federal Aid Project NO: HSIPL-5132(052)

NAME OF PROJECT
November 8, 2022, 2:00 p.m.

DATE OF BID

NO. BIDDER AMOUNT
1 Dirt & Aggregate Interchange, Inc. Fairview, OR $678,888 2 Midstate Barrier, Inc. Stockton, CA $700,280
3 Coral Construction Company Bend, OR $927,777

Engineer’s Estimate $700,400

Packet Page 117 of 812Attachment 2 Page 1 of 1

CITY OF FAIRFIELD

RESOLUTION NO. 2023-05

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF FAIRFIELD APPROVING THE PLANS AND SPECIFICATIONS AND AWARDING A CONTRACT TO DIRT & AGGREGATE INTERCHANGE, INC.

FOR THE FAIRFIELD HIGHWAY SAFETY IMPROVEMENT PROGRAM CYCLE 9 GUARDRAIL PROJECT, FEDERAL AID PROJECT NO. HSIPL 5132-052 AND AUTHORIZING AN UPDATE TO THE FISCAL YEAR 2022-2023 BUDGET

WHEREAS, the Fairfield Highway Safety Improvement Program (HSIP) Cycle 9 Guardrail Project, Federal Aid Project No. HSIPL 5132-052 (Project), was selected to receive $655,400.00 in Highway Safety Improvement Program funds; and

WHEREAS, the bid opening for the Project took place on November 8, 2022; and

WHEREAS, the apparent low base bid was submitted by Dirt and Aggregate Interchange Inc., in the amount of $678,888.00; and

WHEREAS, staff has reviewed the bid documents from Dirt and Aggregate Interchange Inc. and found them to be in order; and

WHEREAS, the California Department of Transportation (Caltrans) has provided additional funding in the amount of $344,600 to the Project; and

WHEREAS, after receiving additional funds from Caltrans, staff recommends City Council include Additive Alternate A - H in the contract award; and

WHEREAS, staff recommends the council award the contract to Dirt and Aggregate Interchange Inc., in the amount of the Base Bid of $912,691; and

WHEREAS, funding was not allocated in the City’s approved 2022-2023 Budget thus requiring a and adjustment of $20,000 to cover the remaining cost of the Project; and

WHEREAS, the revised appropriation constitutes an update to the 2022-2023 Budget approved pursuant to Resolution No. 2021-126.

NOW, THEREFORE, THE COUNCIL OF THE CITY OF FAIRFIELD HEREBY RESOLVES:

Section 1. The plans and specifications for the Fairfield HSIP Cycle 9 Guardrail Project, Federal Aid Project No. HSIPL 5132-052 are hereby approved.

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RES. NO. 2023-05

Page 2 ends

Section 2. The city manager is authorized to enter into a contract with Dirt and Aggregate Interchange Inc. for the Fairfield HSIP Cycle 9 Guardrail Project, Federal Aid Project No. HSIPL 5132-052 in the amount of $912,691.

Section 3. The public works director is hereby authorized to execute and administer change orders for an amount not-to-exceed 10% ($91,269.10) of the above contract amount.

Section 4. The council hereby approves budget transfers of $20,000 from the SB1 Fund (Fund 055) to the Capital Streets Fund (Fund 252, Project No. 10135).

Section 5. The council hereby approves a budget adjustment of $20,000 to the Capital Streets Fund (Organization Code 25260199, Project 1013 5) to cover the funding requirement.

Section 4. The city manager is authorized to enter into an escrow agreement for security deposits in lieu of retention for said contract, if necessary.

Section 5. The city manager is hereby authorized to implement the above -mentioned contract.

PASSED AND ADOPTED this 17th day of January, 2023, by the following vote:

AYES: COUNCILMEMBERS: MOY / BERTANI / CARR / PANDURO /TONNESEN / VACCARO / WILLIAMS

NOES: COUNCILMEMBERS:

ABSENT: COUNCILMEMBERS:

ABSTAIN: COUNCILMEMBERS:

________________________________________________
MAYOR
ATTEST

______________________________

CITY CLERK

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Agenda Item No: 10.

AGENDA REPORT
DATE:January 17, 2023
TO:Mayor and City Council
FROM:David Gassaway, City Manager
SUBJECT:Resolution 202306 of the City Council of the City of Fairfield Approving the City’s Fiscal Year 202122 Annual Comprehensive Financial Report and the Draft Schedule of Expenditures for Federal Awards Report (Single Audit) and Other Reports
RECOMMENDED ACTION
Adopt resolution.

STATEMENT OF ISSUE
The City Council is being asked to approve the Annual Comprehensive Financial Report (ACFR) for Fiscal Year (FY) 202122, as well as the draft Schedule of Expenditures for Federal Awards Report (Single Audit). The FY 202122 ACFR indicates the City’s financial condition as of June 30, 2022, and has been audited by the firm of Eide Bailly LLP, an independent firm of Certified Public Accountants. The FY 202122 draft Schedule of Expenditures for Federal Awards Report is expected to be in compliance applicable to major federal programs, and will be audited in February of this year. Staff will bring forward for approval a revised report if there are any changes to the current draft, at this time staff is not anticipating any changes to occur.

DISCUSSION
Each year an audit of the City’s financial statements (the ACFR) and the City’s Federal Grants (Single Audit) is performed by a firm of independent CPA’s in conformity with Generally Accepted Audit Standards (GAAS).

The ACFR is a report that covers all funds of the City and is prepared in accordance with Generally Accepted Accounting Principles (GAAP). It is considered a generalpurpose report, as its contents are intended to meet the needs of a broad range of user groups. The auditors have issued an unmodified opinion on these financial statements. Such an opinion reflects the auditors’ belief that the basic financial statements contained in these reports present fairly the financial position of the City of Fairfield (see Auditors’ opinion on page 1 of the Annual Report).

A good summary of the financial condition of the City is contained in the transmittal letter and the Management’s Discussion and Analysis (MD&A) of the ACFR, as well as in the City’s Popular Annual Financial Report (PAFR) for FY 202122, which is included in this submission as well (the PAFR is a more condensed version of the ACFR—that extracts summary information from the ACFR; the PAFR is not audited but is provided as a supplement to the ACFR). Additional supporting information related to the financial statements can be found in the notes to the financial statements of the ACFR. The following represents key financial positions and highlights of the City’s major funds:

Government Wide:The assets plus deferred outflows of the City exceeded its liabilities plus deferred inflows at the close of FY 2122 with a net position of $657 million. Of this amount, the unrestricted net position is negative ($6) million after accounting for the City’s net pension liability of $120 million. Total long term liabilities reflected on the statement of net position decreased by $86 million, primarily resulting from the net pension liability decreases based on the 2 year lookback of valuations.

The City’s governmental funds reported a combined ending fund balance of $227 million, an increase of $6.8 million or 3% over the prior year.

Total fund balances include cash and noncash assets (such as receivables and land assets). A notable change in governmental fund balances in FY 2022 was an increase in the General Fund from $52.3 million to $56.8 million. This $4.5 million increase is primarily attributable to higher than expected sales taxes and lower spending during the year. The Capital Projects fund balances increased by $3 million due to higher transfers in towards the Capital Improvement Plan (CIP).

General Fund:The fund balance increased from the prior year to the current year by $4.5 million to a balance of $56.8 million. This increase was mainly due to continued strength in, and higher than budgeted, sales & Measure P taxes (revenues exceeded the last year by $6.6 million and budget by $9.2 million). Investment income took a bite into the final results with a negative $(3.7) million variance, this is due to the rising interest rate environment that has pushed the fair market value of the City’s investments lower. This is not expected to affect the future operating results as most investments are held to maturity and will recoup the fair market value loss.

Internal Service Fund Liabilities:As shown in the transmittal letter, the table below shows some of the key liabilities of the internal service funds and their associated levels of funding:

Packet Page 120 of 812

Internal Service Fund Liabilities:As shown in the transmittal letter, the table below shows some of the key liabilities of the internal service funds and their associated levels of funding:

Intragovernmental Loan Fund:The Net position of the Intragovernmental Loan Fund increased by $15.5 million from $27.2 million to $42.7 million. This was primarily due to the transfer of $16.7 million in revenue loss funds from the General Fund, spending on the general plan update and the Heart of Fairfield Project of $1.1 million and a transfer out of $1 million to set up the Housing Trust Fund seed monies.

Water Funds:The net position of the Water Funds increased by $7.5 million during FY 202122 from $70.5 to $78.0 million. This was mainly due to lower operating expenses (due to higher CalPERS investment returns). As discussed below, this fund has recognized its share of the City’s Net Pension Liability of $11.6 million (as required by Governmental Accounting Standards Board (GASB) 68).

Golf Funds:The Golf Funds show an accumulated net position of $14.3 million, mainly consisting of the net capital assets of the golf courses themselves of $13.2 million. Remaining bond liabilities total $.9 million; these bonds continue to be paid down per the debt service schedule and will be paid off in 2023.

Transit:The net position of the Transportation Funds decreased by $2.8 million during FY 202122. This was mainly due to the pandemic and reduced ridership and revenue during the year, as well as the transfer of five buses to SolTrans who was chosen as the sole operator of the intercity bus routes by the Solano Transportation Authority. As discussed below, and as required by GASB 68, this fund has recognized its share of the City’s Net Pension Liability of $2.3 million (including deferred inflows and outflows) which resulted in the fund ending with a negative unrestricted net position of $2.3 million.

CalPERS and Net Pension Liability:As of June 30, 2022, the City’s combined total Net Pension Liability (NPL) is approximately $120 million, a decrease of $77 million (39%) over the prior fiscal year. The NPL is a result of comparing total pension plan assets of $606 million to the total pension liability of $726 million, which reflects that approximately 83.5% of the pension liability has been funded through June 30, 2021, the date of the most recent pension actuarial report provided by CalPERS. This compares to a 71.6% funding level in the prior year. The City’s net liability benefited greatly by a 21.3% investment return for CalPERS in FY 202021, but a large amount of these gains will be reversed in the following year as the fund yielded a negative (6.1%) in FY 202122, and this will be reflected in next year’s Annual Comprehensive Financial Report (ACFR).

Of the total NPL, $12 million was allocated to the Water fund; $5 million to the North Bay Regional Water Treatment Plan (NBR) Fund; and $2 million to the Transit Fund based upon FullTime Equivalent Employees (FTEs) allocated to these funds. The remaining NPL relates to the General Fund and other governmental funds ($101 million) and is accounted for in the GovernmentWide Statement of Net Position.

Other Reports
Measure P Compliance report – The City’s independent auditors have completed a Transactions and Use Tax Ordinance Compliance and Internal Control Audit Report. The City is found to be in compliance of the Ordinance (Attachment 7).

User Utility Tax Compliance report – The City’s municipal code requires that Independent auditors perform a Compliance and Internal Control Audit Report. The City is found to be in compliance of the Ordinance (Attachment 8).

Transportation Development Act (TDA) Audit The California Code of Regulations, requires each transportation planning agency, transmit to the State Controller, annually and within 12 months of the end of the fiscal year, a report of an audit of its accounts and records by the appropriate county auditor, a certified public accountant, or a public accountant pursuant to Sections 6505 and 26909 of the Government Code. The audit report is attached (Attachment 9).

Audit Findings: For the ACFR, the auditor had one finding in the current year and some management recommendations related to the Information and Technology (IT) Department. For the ACFR, the finding was related to the period that an expenditure was recorded in the appropriate fiscal year. The City recognized the expense in the new FY 202223 (when the cost was paid out), rather than the year that the bill was received and should have been recorded (in FY 202122). This was mainly the result of the new Tyler ERP system being implemented at the beginning of FY 202223 and some timing issues related to juggling the two computer systems at the same time during the transition. No payments were missed or money was unaccounted for; ultimately the auditor suggested the expense be recorded in FY 202122, and the City agreed, and made the correction. The City believes we have adequate controls in place to record transactions in the correct period, and with the Tyler ERP in place, this issue has been addressed.

Related to the IT Department, the auditor pointed out some deficiencies in the security of the old system—Cayenta—which the City knew existed already. The solution to this is the retirement of the Cayenta system and the implementation of the new Tyler ERP system—which is well underway (Payroll to go live on January 1, 2023). The Tyler ERP will address the concerns of the auditor.

In addition, the auditor had several IT recommendations related to IT security policies, data recovery and restoration, and security reviews. The IT department has responded with its implementation plan, and plans to address these issues in the near future.

Agenda Item No: 10.AGENDA REPORTDATE:January 17, 2023 TO:Mayor and City CouncilFROM:David Gassaway, City ManagerSUBJECT:Resolution 202306 of the City Council of the City of Fairfield Approving the City’s Fiscal Year 202122 AnnualComprehensive Financial Report and the Draft Schedule of Expenditures for Federal Awards Report (Single Audit) andOther ReportsRECOMMENDED ACTIONAdopt resolution.STATEMENT OF ISSUEThe City Council is being asked to approve the Annual Comprehensive Financial Report (ACFR) for Fiscal Year (FY) 202122, as well as thedraft Schedule of Expenditures for Federal Awards Report (Single Audit). The FY 202122 ACFR indicates the City’s financial condition as ofJune 30, 2022, and has been audited by the firm of Eide Bailly LLP, an independent firm of Certified Public Accountants. The FY 202122 draftSchedule of Expenditures for Federal Awards Report is expected to be in compliance applicable to major federal programs, and will beaudited in February of this year. Staff will bring forward for approval a revised report if there are any changes to the current draft, at this timestaff is not anticipating any changes to occur.DISCUSSIONEach year an audit of the City’s financial statements (the ACFR) and the City’s Federal Grants (Single Audit) is performed by a firm ofindependent CPA’s in conformity with Generally Accepted Audit Standards (GAAS).The ACFR is a report that covers all funds of the City and is prepared in accordance with Generally Accepted Accounting Principles (GAAP). Itis considered a generalpurpose report, as its contents are intended to meet the needs of a broad range of user groups. The auditors haveissued an unmodified opinion on these financial statements. Such an opinion reflects the auditors’ belief that the basic financial statementscontained in these reports present fairly the financial position of the City of Fairfield (see Auditors’ opinion on page 1 of the Annual Report).A good summary of the financial condition of the City is contained in the transmittal letter and the Management’s Discussion and Analysis(MD&A) of the ACFR, as well as in the City’s Popular Annual Financial Report (PAFR) for FY 202122, which is included in this submission aswell (the PAFR is a more condensed version of the ACFR—that extracts summary information from the ACFR; the PAFR is not audited but isprovided as a supplement to the ACFR). Additional supporting information related to the financial statements can be found in the notes to thefinancial statements of the ACFR. The following represents key financial positions and highlights of the City’s major funds:Government Wide:The assets plus deferred outflows of the City exceeded its liabilities plus deferred inflows at the close of FY 2122 with anet position of $657 million. Of this amount, the unrestricted net position is negative ($6) million after accounting for the City’s net pensionliability of $120 million. Total long term liabilities reflected on the statement of net position decreased by $86 million, primarily resulting from thenet pension liability decreases based on the 2 year lookback of valuations.The City’s governmental funds reported a combined ending fund balance of $227 million, an increase of $6.8 million or 3% over the prior year.Total fund balances include cash and noncash assets (such as receivables and land assets). A notable change in governmental fund balancesin FY 2022 was an increase in the General Fund from $52.3 million to $56.8 million. This $4.5 million increase is primarily attributable to higherthan expected sales taxes and lower spending during the year. The Capital Projects fund balances increased by $3 million due to highertransfers in towards the Capital Improvement Plan (CIP).General Fund:The fund balance increased from the prior year to the current year by $4.5 million to a balance of $56.8 million. This increasewas mainly due to continued strength in, and higher than budgeted, sales & Measure P taxes (revenues exceeded the last year by $6.6 millionand budget by $9.2 million). Investment income took a bite into the final results with a negative $(3.7) million variance, this is due to the risinginterest rate environment that has pushed the fair market value of the City’s investments lower. This is not expected to affect the futureoperating results as most investments are held to maturity and will recoup the fair market value loss.Internal Service Fund Liabilities:As shown in the transmittal letter, the table below shows some of the key liabilities of the internal servicefunds and their associated levels of funding:Intragovernmental Loan Fund:The Net position of the Intragovernmental Loan Fund increased by $15.5 million from $27.2 million to$42.7 million. This was primarily due to the transfer of $16.7 million in revenue loss funds from the General Fund, spending on the general planupdate and the Heart of Fairfield Project of $1.1 million and a transfer out of $1 million to set up the Housing Trust Fund seed monies.Water Funds:The net position of the Water Funds increased by $7.5 million during FY 202122 from $70.5 to $78.0 million. This was mainlydue to lower operating expenses (due to higher CalPERS investment returns). As discussed below, this fund has recognized its share of theCity’s Net Pension Liability of $11.6 million (as required by Governmental Accounting Standards Board (GASB) 68).Golf Funds:The Golf Funds show an accumulated net position of $14.3 million, mainly consisting of the net capital assets of the golf coursesthemselves of $13.2 million. Remaining bond liabilities total $.9 million; these bonds continue to be paid down per the debt service scheduleand will be paid off in 2023.Transit:The net position of the Transportation Funds decreased by $2.8 million during FY 202122. This was mainly due to the pandemic andreduced ridership and revenue during the year, as well as the transfer of five buses to SolTrans who was chosen as the sole operator of theintercity bus routes by the Solano Transportation Authority. As discussed below, and as required by GASB 68, this fund has recognized itsshare of the City’s Net Pension Liability of $2.3 million (including deferred inflows and outflows) which resulted in the fund ending with anegative unrestricted net position of $2.3 million.CalPERS and Net Pension Liability:As of June 30, 2022, the City’s combined total Net Pension Liability (NPL) is approximately $120million, a decrease of $77 million (39%) over the prior fiscal year. The NPL is a result of comparing total pension plan assets of $606 million tothe total pension liability of $726 million, which reflects that approximately 83.5% of the pension liability has been funded through June 30,2021, the date of the most recent pension actuarial report provided by CalPERS. This compares to a 71.6% funding level in the prior year. TheCity’s net liability benefited greatly by a 21.3% investment return for CalPERS in FY 202021, but a large amount of these gains will bereversed in the following year as the fund yielded a negative (6.1%) in FY 202122, and this will be reflected in next year’s AnnualComprehensive Financial Report (ACFR).Of the total NPL, $12 million was allocated to the Water fund; $5 million to the North Bay Regional Water Treatment Plan (NBR) Fund; and $2million to the Transit Fund based upon FullTime Equivalent Employees (FTEs) allocated to these funds. The remaining NPL relates to theGeneral Fund and other governmental funds ($101 million) and is accounted for in the GovernmentWide Statement of Net Position.Other ReportsMeasure P Compliance report – The City’s independent auditors have completed a Transactions and Use Tax Ordinance Compliance andInternal Control Audit Report. The City is found to be in compliance of the Ordinance (Attachment 7).User Utility Tax Compliance report – The City’s municipal code requires that Independent auditors perform a Compliance and InternalControl Audit Report. The City is found to be in compliance of the Ordinance (Attachment 8).Transportation Development Act (TDA) Audit The California Code of Regulations, requires each transportation planning agency, transmitto the State Controller, annually and within 12 months of the end of the fiscal year, a report of an audit of its accounts and records by theappropriate county auditor, a certified public accountant, or a public accountant pursuant to Sections 6505 and 26909 of the GovernmentCode. The audit report is attached (Attachment 9).Audit Findings: For the ACFR, the auditor had one finding in the current year and some management recommendations related to theInformation and Technology (IT) Department. For the ACFR, the finding was related to the period that an expenditure was recorded in theappropriate fiscal year. The City recognized the expense in the new FY 202223 (when the cost was paid out), rather than the year that the billwas received and should have been recorded (in FY 202122). This was mainly the result of the new Tyler ERP system being implemented atthe beginning of FY 202223 and some timing issues related to juggling the two computer systems at the same time during the transition. Nopayments were missed or money was unaccounted for; ultimately the auditor suggested the expense be recorded in FY 202122, and the Cityagreed, and made the correction. The City believes we have adequate controls in place to record transactions in the correct period, and withthe Tyler ERP in place, this issue has been addressed.Related to the IT Department, the auditor pointed out some deficiencies in the security of the old system—Cayenta—which the City knewexisted already. The solution to this is the retirement of the Cayenta system and the implementation of the new Tyler ERP system—which iswell underway (Payroll to go live on January 1, 2023). The Tyler ERP will address the concerns of the auditor.In addition, the auditor had several IT recommendations related to IT security policies, data recovery and restoration, and security reviews. The IT department has responded with its implementation plan, and plans to address these issues in the near future.

Summary:The City received an unmodified opinion, and received positive feedback once again from the auditors for the work performed and reports prepared by the City’s Accounting Division. This is also demonstrated by the fact that the City was awarded the Certificate of Achievement for Excellence in Financial Reporting by the Government Finance Officers Association (GFOA) for the 34th year in FY 202021; and the expectation would be to receive the award in the future for this set of financial statements.

FINANCIAL IMPACT
The cost of the audit of the City’s annual ACFR is included as part of the General Fund budget (Fund 101, Division and Responsibility Code 20300). There is no financial impact resulting from the acceptance of the report.

PUBLIC CONTACT/ADVISORY BODY RECOMMENDATION
On December 19, 2022, the City Council’s Audit Committee met with the independent auditors, and reviewed and received the attachments to this report.

ALTERNATIVE ACTION
The council may choose not to approve the acceptance of the City’s Annual Comprehensive Financial Report for the fiscal year ended June 30, 2022. However, it should be noted that any changes to the report at this point would result in additional costs incurred by the City.

STAFF CONTACT
John Furtado, Director of Finance
(707) 4287495
[email protected]
COORDINATED WITH
ATTACHMENTS:

Description
Attachment 1: ACFR Final Report
Attachment 2: Draft SEFA 6302022
Attachment 3: Governance Letter
Attachment 4: Management Letter
Attachment 5: Auditor's Report on Internal Control
Attachment 6: FY 202122 PAFR
Attachment 7: Measure P Compliance Report
Attachment 8: UUT Compliance Report
Attachment 9: FY 202122 TDA Financials
Attachment 10: Proposed Resolution
REVIEWERS:

Reviewer Action Date
Burleson, Michele Approved 1/3/2023 5:42 PM
Burleson, Michele Approved 1/3/2023 6:54 PM
Burleson, Michele Approved 1/3/2023 7:02 PM
Beavers, Esther Approved 1/4/2023 11:01 AM
Beavers, Esther Approved 1/4/2023 11:01 AM
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City of Fairﬁeld, California
Annual Comprehensive Financial Report
Fiscal Year Ended June 30, 2022
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City of Fairfield, California

Annual Comprehensive
Financial Report

For the Fiscal Year Ended
June 30, 2022

Prepared by:

Finance Department
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i
City of Fairfield, California
Annual Comprehensive Financial Report
For the Year Ended June 30, 2022
Table of Contents
Introductory Section (unaudited)Page
Table of Contents i
City Council, Elected Officials, and Management Leadership Team iv Letter of Transmittal v
Organization Chart xv
Certificate of Achievement for Excellence in Financial Reporting xvi Financial Section
Independent Auditor's Report 1
Management's Discussion and Analysis 5
Basic Financial Statements:

Government‐Wide Financial Statements:

Statement of Net Position 18
Statement of Activities 19
Fund Financial Statements:

Governmental Funds:

Balance Sheet 23
Reconciliation of the Governmental Funds Balance Sheet
to the Government‐Wide Statement of Net Position 25
Statement of Revenues, Expenditures and Changes in Fund Balances 27 Reconciliation of the Governmental Funds Statement
of Revenues, Expenditures and Changes in Fund Balances
to the Government‐Wide Statement of Activities 29
General Fund: Statement of Revenues, Expenditures and Changes in Fund Balance ‐ Budget and Actual 30
Low Mod Income Housing Major Special Revenue Fund: Statement of Revenues, Expenditures and Changes in Fund Balance ‐ Budget and Actual 31 Special Programs Major Special Revenue Fund: Statement of Revenues, Expenditures and Changes in Fund Balance ‐ Budget and Actual 32 Proprietary Funds:

Statement of Net Position 35
Statement of Revenues, Expenses and Changes in Net Position 37 Statement of Cash Flows 39
Fiduciary Funds:

Statement of Fiduciary Net Position 44
Statement of Changes in Fiduciary Net Position 45
Notes to Basic Financial Statements 47
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City of Fairfield, California
Annual Comprehensive Financial Report
For the Year Ended June 30, 2022
Table of Contents (continued)
Financial Section, (continued)Page
Required Supplementary Information: (unaudited)
Schedule of Changes in Net Pension Liability and Related Ratios ‐ Miscellaneous Plan 97 Schedule of Changes in Net Pension Liability and Related Ratios ‐ Safety Plan 98 Schedule of Contributions ‐ Miscellaneous Plan 99
Schedule of Contributions ‐ Safety Plan 100
Schedule of Changes in Net OPEB Liability and Related Ratios 101 Schedule of Contributions ‐ Net OPEB Liability 102
Supplementary Information:

City Capital Projects ‐ Major Capital Projects Fund: Schedule of Revenues, Expenditures and Changes in Fund Balance ‐ Budget and Actual 104 Non‐Major Governmental Funds:

Combining Balance Sheet 107
Combining Statement of Revenues, Expenditures and Changes in Fund Balances 111 Combining Schedule of Revenues, Expenditures and Changes in Fund Balances ‐ Budget and Actual 115
Internal Service Funds:

Combining Statement of Net Position 121
Combining Statement of Revenues, Expenses and Changes in Net Position 123 Combining Statement of Cash Flows 125
Custodial Funds:

Combining Statement of Fiduciary Net Position 131
Combining Statement of Changes in Fiduciary Net Position 133 Statistical Section (unaudited)Table
Net Position by Component 1 137
Changes in Net Position 2 139
Governmental Activities Tax Revenues by Source 3 143
Fund Balances of Governmental Funds 4 145
Changes in Fund Balances of Governmental Funds 5 147
Changes in Fund Balances of General Fund 6 149
Assessed Value and Estimated Actual Value of Taxable Property 7 151 Property Tax Rates ‐ Direct and Overlapping Governments 8 152 Principal Property Taxpayers 9 153
Property Tax Levies and Collections 10 154
Ratios of Outstanding Debt by Type 11 155
Ratios of General Bonded Debt Outstanding 12 156
Direct and Overlapping Governmental Activities Debt 13 157 Legal Debt Margin Information 14 159
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City of Fairfield, California
Annual Comprehensive Financial Report
For the Year Ended June 30, 2022
Table of Contents (continued)
Statistical Section (unaudited), (continued)Table Page
Utility and Golf Debt Pledged Revenue Coverage 15 161
Demographic and Economic Statistics 16 163
Principal Employers 17 164
Full‐time Authorized City Government Employees by Function 18 165 Operating Indicators by Function 19 166
Capital Asset Statistics by Function 20 167

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City of Fairfield, California
City Council and Elected Officials
iv
Harry T. Price    Rick Vaccaro
Mayor  Vice‐Mayor
District 4
Chuck Timm      Scott Tonnesen Catherine Moy         Doriss Panduro      Pam Bertani Councilmember        Councilmember Councilmember   Councilmember   Councilmember District 1 District 2    District 3     District 5         District 6 Karen L. Rees    Arvinda Krishnan
City Clerk  City Treasurer
Management Leadership Team
David Gassaway Matt Luckenbach John Furtado
Interim City Manager  Fire Chief Director of Finance
David Lim Farbod Pirouzmand  Paul Kaushal
City Attorney Director of Human Resources Director of Public Works David Feinstein Dan Marshall  LaTanna Jones
Interim Director of Police Chief  Director of Housing Services Community Development
Kristina Kaunzinger  Savita Chaudhary
Director of Parks and Recreation Director of Information Technology
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December 15, 2022
Honorable Mayor and City Council
City of Fairfield, California
The City is pleased to submit its Annual Comprehensive Financial Report (ACFR) of the City of Fairfield (the City) for the fiscal year ended June 30, 2022. The information contained in this ACFR is prepared in accordance with general accepted accounting principles (GAAP) and includes an unmodified opinion on the report by the City’s independent certified public accountants, Eide Bailly LLP. Management assumes responsibility for the accuracy and fairness of the information provided in this report.

The ACFR is presented in three sections: introductory, financial, and statistical. The introductory section includes this transmittal letter, the City’s organizational chart and a list of municipal officers and officials. The financial section includes management’s discussion and analysis (MD&A), government‐wide financial statements, fund financial statements, notes to the financial statements, and required supplementary information, as well as the auditor’s report on the financial statements and schedules. The MD&A provides additional information regarding management of the City’s finances and should be read in conjunction with the transmittal letter. The statistical section includes selected financial and demographic information of the City, generally presented on a multi‐year basis.

The Reporting Entity and Services Provided
Fairfield is a general law city and operates under a Council‐Manager form of government. The City provides a full range of municipal services, including police, fire, water, public transportation, streets and sidewalks, housing assistance, cultural and recreation facilities, golf courses, public works and parks, planning, and economic development. Sewer service is provided by agreement with the Fairfield‐Suisun Sewer District, which operates and maintains interceptors and the treatment plant, while the City maintains local collector sewers.

This report includes all activities considered to be a part of, controlled by, and dependent on the City.

Accordingly, this report includes the financial activities of the following:

Water Facilities Improvement District
Municipal Park Improvement District
Housing Authority
Public Financing Authority
Storm Drain Facilities Improvement District
Community Facilities Districts
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vi
City and Government Profile
Fairfield sits at the northeastern portion of the San
Francisco Bay Area. The County seat of Solano County
since 1858, Fairfield has the vision of a progressive city.

Founded in 1856 by Captain Robert Waterman, the City
was named after Fairfield, Connecticut. Community
amenities include an enclosed regional shopping mall
with over one million square feet and 150 stores, an
adult recreation center, the 650‐acre Rockville Hills
Park, and a weekly farmer's market in season. Situated
between two of the fastest growing areas in California, Fairfield bridges the gap between the San Francisco
Bay Area and the Sacramento metropolitan region. The
Napa and Sonoma wineries lie an hour to the west, and
Lake Tahoe two hours to the east.

The City is a general law city, and was incorporated in 1903. It has a Council‐Manager form of government
with the Mayor elected at large and six Council
members are voted by the district. They all serve four‐ year, staggered terms. There are also two citizen commissions whose members are appointed by the Council to fixed terms: Planning and Youth. The City also has a five‐member Fairfield Taxpayers Committee (the “Measure P Committee”) whose members are appointed by Council to a fixed term. The City Clerk and Treasurer are elected.

The City Council appoints the City Manager and Attorney. Department heads are appointed by the City Manager.

The City is organized into eight departments: Public Works, Police, Fire, Finance, Community Development, Parks and Recreation, Housing Services, and Administration; with the Administration department being comprised of Information Technology, Human Resources, as well as the executive, legislative, and legal offices. The chart below shows the City’s full‐time staff levels during the past ten years. The City’s employees are 0.5% of the total population of the City.

The City provides a broad range of services including police and fire protection; construction and maintenance of streets, parks, storm drains and other infrastructure; recreational and cultural activities, including two 18‐hole championship golf courses; and administrative support services. Some major public services delivered within the City’s boundaries, including library, wastewater, and education, are provided by other governmental agencies.

The City is not financially accountable for the operations of these franchises or government agencies.

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vii
Demographic Information

Fairfield is an ethnically diverse community (U.S. Census Bureau data from 2021 indicates that of the total population, 17% is black, 16% is Asian, 30% is Hispanic, 30% is white and 7% is other/mixed).  Local educational institutions include Solano Community College, and campuses of St. Mary’s College, Golden Gate University, University of Phoenix, Chapman University, California Maritime Academy, and Touro University. The University of California Berkeley and Davis are within a 40 minute drive. Size:41.6 square miles
Population 119,897
Population Ranking CA Cities:53
Median Age:35 years
Per Capita Personal Income:$35,094
Unemployment Rate (EDD 10/21):4%
% of Pop. High School / College Degree:87.4% / 27.9%
Part 1 Crime Rate (FY2022):30.42  per 1,000 persons
Elevation:15 to 400 feet above sea level
Fire Protection:ISO Rating 2 fire class
Major Employers
Travis Air Force Base U.S. Military  13,414
County of Solano Government  2,633
Fairfield‐Suisun Unified School District Education  2,213 NorthBay Healthcare Center Healthcare  1,969
Solano Community College Education 750
Partnership HealthPlan Healthcare 561
City of Fairfield Government      553
Jelly Belly Candy Co.Manufacturing  489
Sutter Regional Medical Foundation Healthcare 475
Westamerica Bancorporation Banking 418
Trend Information / Comparison of Cities
See the City’s original budget for fiscal years 2021‐22 and 2022‐23 for more information regarding these trends among comparable cities
The City’s population growth rate is average.
The City’s per capita revenues from tax revenues is below average. The City has had significant swings in its property and sales tax revenues, building and foreclosure activity, unemployment rates, transit ridership and golf rounds played. The City’s pension obligation contribution rate has increased significantly over the past ten years. The City’s Other Post‐Employment Benefits (OPEB) liability is below the average. The City has a low industrial vacancy rate, but a high office vacancy rate.

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viii
Accounting System and Budgetary Control
Note 1 in the Basic Financial Statements provides a detailed explanation of the City’s significant accounting policies. The City has established internal controls to ensure the government’s assets are protected from loss, theft, or misuse and to demonstrate stewardship of public resources. Because the cost of internal controls should not outweigh their benefits, the City’s framework on internal controls has been designed to provide reasonable, rather than absolute, assurance that the financial statements will be free from material misstatements.

The City prepares a two‐year budget, and departments work with the City Manager and the Finance Department to submit operating budget requests. The City Manager and Director of Finance then make recommendations to the City Council regarding the two‐year budget. After public discussion and evaluation of their recommendations, the City Council adopts a two‐year budget and multi‐year forecast, and also adopts a mid‐cycle budget update at the end of the first year.

Expenditures are controlled at the fund level for all budgeted departments within the City, and may not legally exceed appropriations. The budgets are adopted on a basis substantially consistent with GAAP.

Any amendments to the total appropriations of a fund must be approved by the City Council.

Economic Overview of the City and Region
201
Below is a summary analysis of some key indicators of the region’s economic environment.

Stock and Financial Markets
Stock markets tumbled for the fiscal year with the Dow Jones and S&P dropping 10.8% and 11.9% respectively. Interest rates rose exponentially during the year. Both were triggered by the Fed increasing interest rates in an effort to tackle high inflation. The Conference Board forecasts that economic weakness will intensify and spread more broadly throughout the US economy over the coming months with the possibility of a recession, to begin before the end of 2022. This outlook is associated with persistent inflation and rising hawkishness by the Federal Reserve. The board forecasts that 2022 Real GDP growth will come in at 1.5 percent year‐over‐year and 2023 growth will slow to zero percent year‐ over‐year. Below are the changes in the financial market as of June 30, 2022:

Financial Market Rate Fiscal Year Change
Dow Jones 30,775 ‐3,727
S&P 500 3,785 ‐513
2 Year Treasury 2.92% 2.62%
30 Year Home Mortgage 5.70% 2.50%
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Economic Overview of the City and Region (Continued)

Employment

The US Bureau of statistics reported that job openings rose during 2022 from the prior fiscal year, in a still‐tight labor market where demand for workers continued to far outpace the number of unemployed people looking for work.

The increase in job openings and other figures in the Labor Department’s report on hiring demand and job turnover added to signs of a healthy labor market that has cooled slightly compared with the first half of the year. Payroll growth slowed in September but was still strong. Pay and benefit increases rose rapidly in the third quarter but at a similar pace as the prior quarter. Jobless claims have remained low during the period.

Unemployment Rate Fiscal Year Change
United States 3.6% ‐2.3%
California 4.2% ‐3.8%
Solano County 4.0% ‐3.7%
Fairfield 4.0% ‐3.5%

Inflation

Inflation continued to be the single most worrisome driver of the US economy, despite the Fed increasing interest rates aggressively they have not managed to get it under control. Rising food and energy prices are eating into the discretionary spending of average consumers.

Inflation Rate Fiscal Year Change
Bay Area CPI 6.8% 3.6%
Turner Building CPI 2.2% 0.9%
Personal Savings Rate 5.1% ‐4.3%
Oil Prices (as of 6/30/22) $107 ‐$34

Rental Vacancy Rates

Both Fairfield’s office and industrial vacancy rates decreased during the fiscal year. The decrease in the office vacancy rates was driven by new leases primarily in the medical field. The decrease in the industrial vacancy rate was driven primarily due to multiple new warehouse leases across the city. The Heart of Fairfield revitalization efforts have shown to be effective with downtown generated revenues showing
double digit growth.

Vacancy Rates Rate Fiscal Year Change
Office – Fairfield 25.7% ‐1.5%
Industrial – Fairfield 1.9% ‐1.5%
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x
Economic Overview of the City and Region (Continued)
Sales and Use Tax
Retail sales nationwide for the year ended
June were up 8.2% over the same month
in the previous year. The chart to the right
shows the change in sales tax for the past
10 years, which includes a comparison of
FY 21‐22 to FY 20‐21 where the City’s
sales and use tax collections were up 15%.

This increase was primarily driven by the
recovery from the COVID‐19 pandemic, as
seen in the restaurant and hotel sector
along with a large growth in the auto and
business industries.

Property Taxes
In FY 21‐22, Fairfield property values
increased by approximately 2.6%,
compared to the County’s overall
increase of 3.4%.  The chart to the right
shows in total the change in valuation for
the various types of properties within the
City. Residential represents 71.5% of the
City’s valuation.  There is still $195
million of assessed value representing
Proposition 8 reductions on 1,608 single
family homes that could be recovered in
the future should housing prices
continue to increase.  As of October,
General Fund pending appeals totaled
$47.8 million and $1,067 million for the
Successor Agency, which represented

0.3% and 18.9% of their total assessed values.

Housing
Housing sales totaled 1,665 units sold
during the calendar year 2021, median
sales price was $575,000 for the year.

This represented a 17.35% increase
over the prior year, this increase
continued for the first 9 months of the
calendar year 2022, however prices
and demand have begun to fall as
rising interest rates have taken its toll.

The chart to the right shows the trends
in the median price of homes sales for the last ten calendar years from 2013 through 2022. 15%
13%
‐2%
6%
2%
‐2%
8%
2%
‐2%
7%
‐5% 0% 5% 10% 15% 20%
21‐22
20‐21
19‐20
18‐19
17‐18
16‐17
15‐16
14‐15
13‐14
12‐13

4.7%

4.4%

3.4%

2.6%
‐5.0%
‐8.2%
‐10.0%‐5.0% 0.0% 5.0% 10.0%
Change in Assessed Values
Fiscal Year 21‐22
Commerical
Unsecured
Total City
Total County
Industrial
Residential
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Economic Condition and Outlook – General Fund

The City was able to maintain General Fund reserves over the City Council’s established level of 20% of expenditures during FY 21‐22.

The General Fund’s major revenue sources include
property and sales taxes / Measure P local taxes, utility users and franchise taxes, transfer and vehicle taxes and hotel taxes. Together these groups comprised 89% of
total revenues for FY 21‐22. The remaining 11% includes revenues such as licenses and permits, charges for services, miscellaneous income, and interest/rental income. The City received $19.8 M in one‐time ARPA funds of which $16.7M were recognized as revenue loss and is reflected as a transfer in, this has had a positive impact to the overall health of the General Fund. The City is currently projecting a few years of deficits. This is primarily due to increasing the funding to some of the internal service charges, slower recovery of some revenue streams such as transient occupancy taxes as well as higher increases in pension costs driven by CalPERS rate reductions and lower than projected investment returns.

21‐22 22‐23 23‐24 24‐25 25‐26 Trend
Revenues / Transfers In $141.4 $127.4 $118.3 $123.3 $125.8 Expenditures / Transfers Out 136.8 129.4 121.3 122.1 124.6 (Deficit)/Surplus for Year 4.5 (2.0) (3.0) 1.2 1.2
Available Ending Reserves $56.8 $54.8 $51.8 $53.0 $54.2 % of Expenditures 42% 42% 43% 43% 43%
General Fund Five Year Trend through Fiscal Year 25‐26
(In Millions)

The five year forecast includes the following assumptions:

 Property tax growth of approximately 6% for FY 22‐23, resulting from new development and increased assessed values for properties within the City and in the outer years forecasted at approximately 3.5% growth.
 Sales tax and Measure P taxes are projected to increase in FY 22‐23 by 2.4%, and increase by 2% in FY 23‐24 largely due to the opening of auto dealerships, fuel sales, and increased activity in building and construction.
 About $1M in cannabis retail operations within the City.  Wage increases in line with agreed upon MOU’s through FY 24‐25 and no wage increases are assumed for all years beyond FY 24‐25.
 The City’s revised estimated pension contribution rates as provided by CalPERS through FY 25‐26.

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xii
Economic Conditions and Outlook – Other Funds

Golf Funds
Although the total number of taxable rounds decreased at the City’s golf courses by 6% during the past fiscal year, overall course revenues only decreased 3% as the increase in rental income has offset some of the loss on revenue related to rounds. For the second consecutive year the
courses did not require additional support from the City.

With the golf course bonds being paid off in FY 22‐23, the golf courses are going to be utilizing the excess working capital to address deferred maintenance needs and ensure the courses continue to operate without the assistance of the General Fund. 21‐22 22‐23 23‐24 24‐25 25‐26 Trend
Revenues $6.2 $5.9 $6.0 $6.0 $6.1
Transfer In from Admissions Tax 0.0 0.0 0.0 0.0 0.0
Expenses / Transfers Out 5.9 6.7 6.0 6.1 6.2
(Deficit)/Surplus for Year 0.3 (0.8) (0.0) (0.1) (0.2)
Ending Working Capital 2.1 1.3 1.3 1.2 1.0
Golf Funds Five Year Trends through FY 25‐26
(in millions)
Transit
In September 2021, the STA Board voted
to transition the commuter service
operations from two operators to one
operator, Solano County Transit
(SolTrans). The impact of the transition
is an overall reduction to the revenues
and corresponding expenses in the
transit enterprise fund and a reduction
of 3 full time employees in the
transportation division. Transit relies
heavily on grants to satisfy its
equipment replacement and capital
needs, and there is no guarantee that
these grants will be available in the future. In the event grant funds are not available, Transit will have to explore alternatives to reduce operating expenses and/or grow revenues.

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xiii

Economic Conditions and Outlook – Other Funds (Continued)

Water Funds

The Water Utility operates two treatment plants, the Waterman Plant located off of Vista Grande and the North Bay Water Treatment Plant (NBR) located off of Peabody Road. The last water rate increase went into effect in 2021. A water master plan is programmed for FY 22‐23 which will drive capital needs and provide critical information regarding any proposed rate increases to insure the stability of the Water Funds.

Capital Project Funds

To assist in building new parks and facilities, including police and fire infrastructure, the City relies on the collection of its AB 1600 Impact fees from new development in the City. Without continued new development, future parks and facilities may be delayed or eliminated from the City’s master plan. In addition to new parks and facilities, the City also transfers in Gas Tax revenue to fund street capital projects.

Internal Service Funds

These funds account for many services provided to all departments within the City, including the funding for insurance and compensated absences. Since the City is self‐insured, it is prudent to fund a portion or all of the liability owed over time so other funds are not heavily affected in any one year.

See Notes 10 and 14 in the City’s FY 21‐22 Annual Comprehensive Financial Report for the actuarial assumptions used. The major self‐insurance liabilities, other post‐employment benefits (OPEB), and compensated absences with their corresponding funding reserves as of June 30, 2022 are listed below:

(1, 2) The cash reserve represents the cash in the City’s OPEB fund at June 30, 2022. The liability represents the actuarial accrued liability (as presented in the Required Supplementary Information).

(3) Represents available cash in these specific funds at June 30, 2022. Does not include other insurance fund balances that do not relate to Workers’ Compensation, General Liability, or OPEB.

(4) Liability shown is net of estimated reimbursements from JPA.

Workers'
Compensation
General
Liability ⁽⁴⁾
Other Post-
Employment
Benefits
(OPEB) (1,2)
Compensated
Absences Combined
Cash Reserve (3)14,647,189$ 1,909,491$ 1,385,047$ 4,825,553$ 22,767,280$ Actuarial Liability 9,304,000$ 4,895,000$ 20,774$ 18,339,164$ 32,558,938$ % of Liability Funded 157% 39% 6667% 26% 70%
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xiv
Awards and Acknowledgements

The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the City of Fairfield for its Annual Comprehensive Financial Report (ACFR) for the fiscal year ended June 30, 2021, marking the 34th time the City has received this award. In order to be awarded a Certificate of Achievement, the City was required to produce a report that met GFOA’s high standards for reporting. It is anticipated that the current ACFR will continue to meet the Certificate of Achievement Program’s requirements.

This ACFR was prepared by the City’s Finance Director, Budget Officer, and the Accounting Division staff, who worked hard to prepare this document, including:
Accounting Manager: Michael Less
Principal Accountant: Myles Dixon
Accountants: Tenzin Gangnay, Julie de Guzman and Kristan Weihe Thanks are also extended to the City’s independent auditors for their review of this report, and to the City Council, City Treasurer and City Manager for their stewardship and commitment in planning for the long‐term fiscal health of the City.  For more information about the City or to view the ACFR on‐line, visit http://www.fairfield.ca.gov/
Respectfully submitted,
David Gassaway            John Furtado
Interim City Manager            Director of Finance
Packet Page 140 of 812Attachment 1 Page 18 of 188

City of Fairfield, California Organization Chart xv Citizens of FairfieldCity ClerkMayor & City CouncilCommissionsCity ManagerAssistant City ManagerCommunity DevelopmentInformation TechnologyFinanceHuman ResourcesHousingParks and RecreationFirePolicePublic WorksCity AttorneyCity TreasurerPacket Page 141 of 812Attachment 1 Page 19 of 188

Government Finance Officers Association
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
City of Fairfield
California
For its Annual Comprehensive
Financial Report
For the Fiscal Year Ended
June 30, 2021
Executive Director/CEO
xvi Packet Page 142 of 812Attachment 1 Page 20 of 188

City of Fairfield, California
People and Places in the City

xvii

Packet Page 143 of 812Attachment 1 Page 21 of 188

What inspires you, inspires us. | eidebailly.com
2151 River Plaza Dr., Ste. 308 | Sacramento, CA 95833-4133 | T 916.570.1880 | F 916.570.1875 | EOE 1 Independent Auditor’s Report
To the Honorable Mayor and Members of the City Council
of the City of Fairfield
City of Fairfield, California
Report on the Audit of the Financial Statements
Opinions
We have audited the accompanying financial statements of the governmental activities, the business- type activities, each major fund, and the aggregate remaining fund information of the City of Fairfield, California (City) as of and for the year ended June 30, 2022, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements as listed in the table of contents.

In our opinion, the accompanying financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City, as of June 30, 2022, and the respective changes in financial position, and, where applicable, cash flows thereof and the respective budgetary comparison for the general fund and major special revenue funds for the year then ended in accordance with accounting principles generally accepted in the United States of America.

Basis for Opinions
We conducted our audit in accordance with auditing standards generally accepted in the United States of America (GAAS) and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States (Government Auditing Standards). Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the City and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.

Emphasis of Matter, Adoption of New Accounting Standard As discussed in Note 1 to the financial statements, the City has adopted the provisions of Government Accounting Standards Board (GASB) Statement No. 87, Leases, for the year ended June 30, 2022.

Accordingly, a restatement has been made to the governmental activities and governmental fund net position as of July 1, 2021. Our opinions are not modified with respect to this matter.

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2 Responsibilities of Management for the Financial Statements Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America; and for 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 fraud or error.

In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for twelve months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter.

Auditor’s Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS and Government Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements.

In performing an audit in accordance with GAAS and Government Auditing Standards, we:
•Exercise professional judgment and maintain professional skepticism throughout the audit. •Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.
•Obtain an understanding of internal control relevant to the audit 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 City’s internal control. Accordingly, no such opinion is expressed.
•Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.
•Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for a reasonable period of time.

We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control–related matters that we identified during the audit.

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3 Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis, schedules of changes in net pension liability and related ratios, schedule of changes in the net OPEB liability and related ratios, and schedule of contributions for the pension and OPEB liabilities, as listed in the table of contents, be presented to supplement the basic financial statements. Such information is the responsibility of management and, 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.

Supplementary Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City’s basic financial statements. The schedule of revenues, expenditures and changes in fund balances – budget and actual of the city capital project fund and the combining and individual nonmajor fund financial statements are presented for purposes of additional analysis and are not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. The 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 schedule of revenues, expenditures and changes in fund balances – budget and actual of the city capital project fund and the combining and individual nonmajor fund financial statements are fairly stated, in all material respects, in relation to the basic financial statements as a whole.

Other Information
Management is responsible for the other information included in the annual report. The other information comprises the introductory and statistical sections but does not include the basic financial statements and our auditor's report thereon. Our opinions on the basic financial statements do not cover the other information, and we do not express an opinion or any form of assurance thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and consider whether a material inconsistency exists between the other information and the basic financial statements, or the other information otherwise appears to be materially misstated. If, based on the work performed, we conclude that an uncorrected material misstatement of the other information exists, we are required to describe it in our report.

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4 Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated December 15, 2022, 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 solely 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 effectiveness of the City’s 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 City’s internal control over financial reporting and compliance.

Sacramento, California
December 15, 2022
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City of Fairfield, California
Management Discussion and Analysis

5 This discussion and analysis of the City of Fairfield’s (City’s) financial activities and performance provides an overview and analysis of the City’s financial activities for the fiscal year ended June 30, 2022. This report has been prepared in accordance with standards established by the Governmental Accounting Standards Board (GASB). Please read it in conjunction with the transmittal letter, the basic financial statements and the accompanying notes to those financial statements.

Overview of the Financial Statements

This discussion and analysis is intended to serve as an introduction to the City’s basic financial statements, which consists of three parts: (1) Government‐Wide Financial Statements, (2) Fund Financial Statements, and (3) Notes to the Basic Financial Statements. The financial statements presented herein include all of the activities of the City and its component units.

Government‐Wide Financial Statements
These provide readers with a broad view of the City’s finances, using the economic resources measurement focus and accrual basis of accounting. These accounting methods are similar to those used by private‐sector companies. All of the current year’s revenues and expenses are taken into account regardless of when cash is received or paid. Additionally, certain interfund receivables, payables and interfund activity have been eliminated.

Fund Financial Statements
These provide readers with additional information about the City’s major funds, how services were financed in the short term and fund balances available for financing future projects. Most of the City’s funds excluding the City’s General Fund and Internal Service Funds have significant restrictions, commitments or other limitations which significantly affect the availability of their fund resources for future use.

Notes to the Financial Statements
These provide additional information to provide the reader with a better understanding of the data provided in both the Government‐Wide Financial Statements and Fund Financial Statements.

In addition to the basic financial statements and accompanying notes, this report also presents certain Required Supplementary Information concerning the City’s progress in funding its obligation to provide pension and retiree health benefits to its employees. The combining statements for the non‐major funds and internal service funds are presented immediately following the required supplementary information.

Financial Highlights

The assets plus deferred outflows of the City exceeded its liabilities plus deferred inflows at the close of FY 21‐22 with a net position of $657 million, of this amount, the unrestricted net position is ‐$6 million is after accounting for the City’s net pension liability of $120 million. Total long term liabilities reflected on the statement of net position decreased by $86 million, primarily resulting from the net pension plan decreases based on the 2 year lookback of valuations. As of the close of the current fiscal year, the City’s governmental funds reported a combined ending fund balance of $227 million, consisting of the following components:

Fund Balance Component
Amount
(in millions)
Non‐spendable $0.4
Restricted by Outside Parties/Obligations, land held for redevelopment and loans

154
Committed for Future Development Projects and
Pension Stabilization Plan

20 Assigned for General Fund Carry‐Over and Debt Service on Pension Bonds 6 Unassigned (includes 20% operating Reserve) 47
Total Fund Balance at June 30, 2022 $227

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City of Fairfield, California
Management Discussion and Analysis

6 Government‐Wide Financial Analysis

The City’s Statements of Net Position are shown below for fiscal year 2022 and 2021, including descriptions of items included in the Statements (in millions):

2022 2021 2022 2021 2022 2021
Current and other assets 364$ 337$ 121$ 121$ 485$ 458$ Long term assets 369 367 167 170 536 537 Total assets 733 704 288 291 1,021 995 Total deferred outflows of resources 28 38 4 4 32 42 Long term liabilities outstanding 159 231 80 94 239 325 Current and other liabilities 38 39 48 49 86 88 Total liabilities 197 270 128 143 325 413 Total deferred inflows of resources 64 1 7 ‐ 71 1 Net position:

Net investment in capital assets 360 367 104 102 464 469 Restricted 170 169 29 27 199 196 Unrestricted (30) (65) 24 23 (6) (42) Total net position 500$ 471$ 157$ 152$ 657$ 623$ Summary Statements of Net Position (in millions)
TotalsGovernmental Activities Business‐Type Activities

 Current and Other Assets
This includes unrestricted cash and investments and items such as receivables, inventory and prepaid items expected to be converted into cash within one year.

 Long‐Term Assets
Included is the land held for development and capital assets consisting of land, buildings, improvements, infrastructure, vehicles and equipment. These items provide services to the community and are not available for future spending.

 Current Liabilities
Represents liabilities expected to be paid with cash within one year.

 Long‐Term Liabilities
Includes the outstanding obligations for the City, including the City’s long‐term debt for pensions, OPEB, compensated absences, leases, claims outstanding and bonded debt.

 Net Position
Net investment in capital assets represents the City’s capital assets net of accumulated depreciation and related debt.

The restricted portion is subject to externally imposed restrictions for activities such as capital projects, debt service, and community development and is not available for general operations. The unrestricted portion is available for general operations. The deficit amount shown in Governmental Activities is due to the City’s outstanding pension obligations.

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City of Fairfield, California
Management Discussion and Analysis

7 Government‐Wide Financial Analysis (Continued)

The Statement of Activities reflects the fact that the City’s total net position increased by $34 million in the current fiscal year.

The increase in net position is due to the decrease in Liabilities due to debt settlement and reduced pension liabilities net of increase in deferred inflows of resources. Assets increased by $26 million due to robust revenues and lower spending with the receipt of ARPA funds. The Statement of Net Position also recognizes pension cost expenses that have been significantly lower for FY 21‐22 as compared to FY 20‐21. Capital grants and contributions reduced by $18 million due to development fees and contributions being netted by higher developer credits, these were offset by higher than expected sales and transaction taxes of $6 million driven by higher economic activity and rising prices due to inflationary pressures. Other revenues increased by $6 million due to the recognition of ARPA funds, amounting to $16.7 million that were offset by reduction in fair value of investments of $10 million due to rising interest rates. The City’s Statements of Activities are shown below (in millions) for FY 2022 and 2021:

2022 2021 2022 2021 2022 2021
Revenues:

Program Revenues:

Charges for services 6$ 5$ 54$ 56$ 60$ 61$ Operating grants and contributions 29 26 11 11 40 37 Capital grants and contributions 27 42 5 8 32 50 General Revenues:

Property taxes 36 37 36 37 Sales and transaction taxes 56 50 56 50 Other taxes 16 14 16 14 Other Revenues 20 12 (1) 1 19 13 Total revenues 190 186 69 76 259 262 Expenses:

Administration 13 11 13 11 Finance 1 2 1 2 Police 48 53 48 53 Fire 27 28 27 28 Public works 43 49 43 49 Community development 6 7 6 7 Housing 15 15 15 15 Parks and recreation 7 6 7 6 Interest on long term debt 1 1 1 1 Water utility 34 37 34 37 North bay treatment plant 9 10 9 10 Transportation 15 14 15 14 Golf courses 6 6 6 6 Total expenses 161 172 64 67 225 239 29 14 5 9 34 23 Transfers ‐ ‐ Increase (decrease) in net position 29 14 5 9 34 23 Net position July 1, as restated *471 457 152 143 623 600 Net position June 30 500$ 471$ 157$ 152$ 657$ 623$ *Restated due to GASB 87 (Leases). See note 21.

Business‐Type ActivitiesGovernmental Activities Totals Summary Statements of Activities (in millions)
Increase (decrease) in net position before
transfers

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City of Fairfield, California
Management Discussion and Analysis

8 Government‐Wide Financial Analysis (Continued)
Revenues include charges for services, collected for services to the public such as recreational classes, grants and contributions, representing funding received from other governments and organizations for the purpose of financing the operating and capital costs of a special program, and taxes, including property, sales and transaction, franchise, transient occupancy and business license taxes.

Expenses include Administration and Non Departmental, (including the City Council, City Manager, Human Resources, Information Technology, and contract City Attorney services), Finance (including Risk Management), Police and Fire, Public Works, Community Development (including Planning, Building, and Economic Development), Housing, Parks and Recreation (including Adult and Youth Activities, Aquatics), the City’s two golf courses, Water Treatment Plants, and Transportation.

Governmental Activities

The total cost of services for all governmental activities in FY 21‐22 was $161 million, with program revenues covering $62 million (39%), resulting in a net cost of $99 million. The remaining portion of governmental activities were covered by taxes (some of which can only be used for certain programs) and other revenues, such as interest, general entitlements, sale of property, and transfers. The following table shows the total and net cost of Governmental Activities.

23%
15%
12%14%
22%
6%7%
Government‐Wide Revenues by Source ‐
$259 Million
Charges for services
Operating grants /
contributions
Capital grants /
contributions
Property taxes
Sales / transaction
taxes
Other taxes
Other
6%
1%
3%
3%
23%
13%4%
16%
7%
21%
3%
Government‐Wide Expenses by Source ‐
$225 Million
Administration
Finance
Golf courses
Other
Police
Fire
North bay plant
Water utility
Transportation
Public works
Parks and recreation
2022 2021 2022 2021
Administration and Finance 14$ 13$ 12$ 8$ Police 48 53 44 50 Fire 27 28 22 25 Public works 43 49 10 10 Community development 6 7 4 5 Housing 15 15 3 2 Parks and recreation 7 6 3 (2) Interest on long term debt 1 1 1 1 Total 161$ 172$ 99$ 99$ Net Program Cost/(Revenue) of Governmental Activities (in millions) Total Cost Net Cost/(Revenue)
of Services of Services
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City of Fairfield, California
Management Discussion and Analysis

9 Government‐Wide Financial Analysis (Continued)

Business‐Type Activities
The total cost of all Business‐Type activities this year was $64 million. As shown in the Statement of Activities, the amounts paid by users of the systems was $54 million, receipts from operating and capital grants and contributions were $16 million, primarily related to transportation, for a total of $70 million of program revenues offsetting the cost of these activities. Net position increased by $5 million for business type activities (including investment earnings and transfers) to $157 million. The net program revenues summarized below do not include the investment income or transfers, which is reflected as general revenue to the business‐type activities.

$0
$10
$20
$30
$40
$50
Water Utility North Bay Plant Transportation Golf Courses 2022 Revenue 41.4 10.2 12.6 6.3
2022 Expense 33.9 10.5 15.4 6.0

41.4 10.2 12.6

6.3 33.9

10.5 15.4

6.0 Revenues vs Expenses Enterprise Funds
(in millions)2022 2021 2022 2021
Water utility 34$ 37$ (8)$ (7)$ North bay treatment plant 9 10 (1) (2) Transportation 15 14 3 2 Golf courses 6 6 ‐ (1) Total 64$ 67$ (6)$ (8)$ Net Program Cost/(Revenue) of Business‐Type Activities (in millions) Total Cost Net Cost/(Revenue)
of Services of Services
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City of Fairfield, California
Management Discussion and Analysis

10 Financial Analysis of the City’s Funds

The Fund Financial Statements focus on individual parts of the City’s government, reporting operations in more detail than the Government‐Wide Statements.

Governmental Funds

The City’s governmental funds provide information on near‐term inflows, outflows and balances of spendable resources. The City’s governmental funds reported a combined fund balance at June 30, 2022 of $227 million, an increase of $7 million over the end of the previous fiscal year. Major changes are explained below.

The fund balance for the Low Mod Income Housing Fund decreased by $1.5 million due to renewed activity on the MidPen project at 1700 Santa Monica, a 72 unit affordable housing project.

Capital Projects fund balances increased by $3 million due higher allocations to the CIP totaling $21 million, including developer impact fees while actual spending activity during the year was at $17 million.

Other Governmental Funds reflect an increase in fund balance of $.8 million, which was mainly due to an increase in intergovernmental revenues.

The General Fund is the chief operating fund of the City and reflects an increase of $4.5 million in fund balance. Additional analysis on this fund is contained in a subsequent section of this MD&A.

Proprietary Funds

The City’s proprietary funds provide the same type of information found in the Government‐Wide Financial Statements, but in more detail. Factors concerning these funds have previously been addressed in the discussion of business‐type activities under the Government‐Wide Statements.

General Fund Budgetary Highlights

Over the course of the year, the City Council revised the City’s budget with adjustments for various revenue and expenditure changes. After taking into account these adjustments, General Fund revenues were higher than the final budget by $9.7 million (8.6%), which is primarily attributable to higher sales and transaction taxes, other taxes including utility and franchise taxes, and increases in charges for services and other miscellaneous revenues that were offset by slightly lower property taxes, and a larger decrease in the fair market value of investments due to the rising interest rate environment. Key changes to revenue accounts are shown below:

A significant portion of the City’s General Fund revenue base is dependent on revenues received from local Measure P, a 1% transaction and use tax, which went into effect April 1, 2013 and will expire in 2033. The revenue from this measure is to protect the safety, services, and quality of life in Fairfield along with improving the City’s infrastructure.

Sales and Transaction Taxes were higher by $9.2 million or 19.7% due to inflation, renewed economic activity with the pandemic entering the endemic stage and higher fuel costs adding to sales and transaction bases.

Charges for services increased by $1 million with higher than expected planning and building related fees from increased building activity as well as the limited opening up of Parks and Recreation activities that were shut down during the pandemic.

Miscellaneous revenues increased by $1.5 million driven by higher contributions from other agencies and other reimbursements.

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City of Fairfield, California
Management Discussion and Analysis

11 General Fund Budgetary Highlights (Continued)

General Fund expenses including transfers out were under budget by $1.7 million or 1.3%, mainly due higher staff vacancy savings primarily in the Administration department (1.7 millon), lower spending in Parks and Recreation ($2.1 million) as planned activities recovered slower than anticipated. These were offset by increased fire personnel overtime costs due to staffing adjustments required for fire fighters out on injuries ($1.1 million). Non Departmental expenses increased by $3.3 million over the final budget due to onetime charges for vehicle replacement ($1.9 million) and higher sales tax rebates ($1 million), as sales tax receipts came in much higher than anticipated.

$36
$30
$26
$10
$6
$8
$4
$2
$
$5
$10
$15
$20
$25
$30
$35
$40
Property Taxes
30%
Sales Tax 25% Measure P
Taxes 21%
Utility /
Franchise
Taxes 8%
Other Taxes 5% Charges for
Services 7%
Licenses,
Permits & Fines
3%
Other 2%
General Fund Revenues by Category
Fiscal Year 21‐22
$49
$27
$15
$15
$20
$6 $5
General Fund Expenditures by Department
Fiscal Year 21‐22
Police 36%
Fire 20%
Admin / Non Dept 11%
Public Works 11%
Transfers Out 15%
Recreation 4%
Community Development 3%
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City of Fairfield, California
Management Discussion and Analysis

12 Capital Assets and Long‐Term Obligations

Capital Assets

The capital assets of the City are those assets which are used in the performance of the City’s functions, including infrastructure assets. Under GASB Statement No. 34, eligible infrastructure capital assets are depreciated using the straight‐ line method. For governmental activities, depreciation on capital assets is recognized in the Statement of Activities, while the depreciation for the business‐type activities is recognized in the Statement of Revenues, Expenses, and Changes in Net Position for the Proprietary Funds. Refer to Note 6 for a more detailed listing of all capital assets for governmental and business‐type activities.

Accumulated Carrying
Cost Depreciation Amount
Governmental Activities:

Land 47$ 47$
Buildings and Improvements 293 (104)$ 189 Equipment, Vehicles, Machinery 57 (36) 21 Infrastructure 317 (227) 90 Right to Use Leased Assets 2 2 Construction in Progress 20 20 Total Governmental Activities 736$ (367)$ 369$ Business‐Type Activities:

Land / Intangibles 20$ 20$
Buildings and Improvements 86 (52)$ 34 Equipment, Vehicles, Machinery 41 (38) 3 Infrastructure 217 (114) 103 Construction in Progress 7 7 Total Business‐Type Activities 371$ (204)$ 167$ Summary of Capital Assets (in millions)

Major capital projects in FY 21‐22 include:

 West Texas Gateway Project ‐ $2.7 million
 Purchase of land for new Fire Station 39 $ 1.3 million  Street resurfacing and pavement maintenance $ 3.0 million  Enterprise Resource Planning (new Financial Software) $1.5 million

13%
42%
4%
36%
0%
5%
Total Capital Assets by Type ‐At Cost
Land
Buildings and Improvements
Equipment, Vehicles, Machinery
Infrastructure
Right to Use Leased Assets
Construction in Progress
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City of Fairfield, California
Management Discussion and Analysis

13 Long‐Term Obligations – Bonded Debt and Other Long‐Term Obligations

The City continues to maintain good credit ratings on all of its debt issues, as evidenced by the AA rating assigned by Standard and Poor’s to its Pension Obligation Bonds (with AAA being the highest rating). The graph below summarizes the City’s long‐ term obligations (in millions). The City’s net OPEB liability, covering retiree health and dental payments, is $0.5 million. The City set aside $3.0 million in an internal service fund and in March 2018, the City established an irrevocable trust to help offset this liability. The City’s net OPEB liability relates to a closed plan with a total of 24 members. The actuarial study prepared in the analysis of this obligation assumes a long‐term rate of return of 5.85%. The health costs will decrease annually from 5.7% until the rate reaches 4.0%. The dental rate of 4% will increase annually. Annual payments for FY 21‐22 totaled $217,666.

See Note 14 for more information regarding the City’s net OPEB Liability.

The City’s long‐term obligations of
governmental activities show an increase
during FY 21‐22 with an outstanding
balance of $169 million as of June 30,
2022. The decrease of $71 million to the
net pension liability was due to CalPERS
return on investments during FY 21‐22.

Long‐term obligations for business‐type
activities decreased in FY 21‐22 by $14
million, to $84 million, a result of CalPERS
return on investments. Refer to Note 8 in
the footnote section for a more detailed
listing of the City’s outstanding debt. See
Notes 19 and 20 for more information on
Successor Agency debt as well as
Non‐commitment debt.

2022 2021 2022 2021 2022 2021
General Obligation Bonds 6$ 7$ 6$ 7$ Pension Obligation Bonds 27 29 27 29 Utility‐Water Revenue Bonds 63$ 67$ 63 67 Recreational Revenue Bonds 1 1 1 1 Compensated Absences 18 19 2 2 20 21 Claims and Judgments 14 15 14 15 Leases 2 2
Net Pension Liability 102 170 18 28 120 198 Total Indebtedness 169$ 240$ 84$ 98$ 253$ 338$ Governmental Activities Business‐Type Activities Total
Summary of Long‐Term Indebtedness (in millions)

2%
11%
25%
0%
8%6%
1%
47%
Long Term Debt by Type General Obligation Bonds
Pension Obligation Bonds
Utility‐Water Revenue Bonds
Recreational Revenue Bonds
Compensated Absences
Claims and Judgments
Leases
Net Pension Liability
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City of Fairfield, California
Management Discussion and Analysis

14 Pension Liability

The City’s total net pension liability with CalPERS for FY 21‐22 was $120 million, based upon a measurement date of June 30, 2021. This represents an 83% funding of the total pension liability of $726 million. In addition, the City has pension obligation bonds totaling $27.4 million of principal and interest with annual debt service of $3.0 million.

In determining the City’s employer contribution rates, CalPERS actuarial assumptions assume that it will earn an annual rate of return of 7.15%, with annual salary growth of 2.75% and inflation of 2.5%. For the Classic and Tier II plans, the current employee contribution rate is 10.5% for miscellaneous and 11.25% for safety while for the PEPRA plan the employee contribution rate is 6.5% for miscellaneous and 10.5% for safety; however, the City continues to pay a portion of the employee’s contribution (EPMC) in addition to paying the City’s contribution. CalPERS invests 50% of its investments in equities, 28% in fixed income, 13% in real estate, 8% in private equity, and 1% in liquid assets. If CalPERS does not meet its expected rate of return, the City’s future contribution rates will increase. CALPERS has since reduced the annual rate of return to 6.8% due the triggering of the CalPERS “Fund Mitigation Policy” caused by the FY 21 gain of 21.3%, CalPERS returns for FY 22 were ‐6.1% and are expected to negatively impact the Net Pension Liability in future reporting periods, note that the current liabilities are based on a two year lookback period. See Note 13 of the City’s ACFR for more information regarding the City’s pension obligation.

Economic Factors and Next Year’s Budget

The City prepares a two‐year budget based on council set goals and priorities, which contains a multi‐year financial plan that focuses on long‐term financial viability and allows decision makers to understand the impact of their policy decisions. Budget development is guided by a series of policies adopted by the City Council, which guides long‐term planning, minimum reserve levels, employee compensation, cash and debt management, information technology and utility rates. The budget was based on these key assumptions:

Tax Revenues
HdL Companies provides estimates for property, sales and use tax, and Measure P (transaction and use tax) as part of their tax auditing contracts with the City. Their estimates are based on the current consensus among economists nationally that forecasts a slow economic recovery. The level of projected development is estimated by Community Development staff and reflects projects that have been approved or are being reviewed.

Property Taxes
Pursuant to Proposition 13, passed by California voters in 1978, countywide property taxes are set at 1% of assessed value.

Upon change of ownership, the property value will be reassessed to the current market value (sales price). The City receives approximately 17% of the 1% countywide property tax collected in the City. Property taxes are one of the largest source of revenue to the General Fund since the State passed legislation regarding the collection of the Vehicle License Fee previously collected separately from property taxes. Property taxes, including Motor Vehicle in Lieu Tax are approximately 29.4% of the City’s total General Fund revenues for FY 21‐22. The collection of secured property taxes are expected to increase by approximately 6% for FY 22‐23 and approximately 3.5% for future years, resulting from the increase in assessed values for properties within the city. It should be noted that residential properties represent approximately 71.5% of the total assessed property valuation within the city.

Motor Vehicle in Lieu Tax (Other Taxes)
The Vehicle License Fee (VLF) is a statewide tax on the ownership of a registered vehicle in place of taxing vehicles as personal property. By law, all revenues from the VLF fund city and county services, but the State Legislature controls the tax rate and the allocation among local governments. In 2004, the Legislature permanently reduced the VLF tax rate and eliminated State general fund backfill to cities and counties. Instead, cities and counties now receive additional transfers of property tax revenues in lieu of VLF. These funds are classified as property taxes. VLF is approximately 9.4% of the City’s total General Fund revenues for FY 21‐22. Their growth going forward is tied to the change in the City’s assessed value growth in the prior fiscal year.

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City of Fairfield, California
Management Discussion and Analysis

15 Economic Factors and Next Year’s Budget (Continued)

Utility and Franchise Taxes
The City imposes a Utility Users Tax of 2% on all residential and commercial utility bills for properties within the City. As this revenue can fluctuate from year to year based upon usage, staff is projecting no increases in these revenues for the next two fiscal years. The City has franchise agreements with several utility companies, where they pay the City a franchise fee based on a percentage of their revenue earned within the City limits. These fees serve as compensation for, among other things, wear and tear on City streets. Franchise fees can change when the customer base expands, when additional services are used, when weather impacts the use of the utility, and when rates change. Utility and Franchise Taxes were approximately 8.4% of the total City’s General Fund revenues for FY 21‐22. As this revenue can fluctuate from year to year based upon usage, staff is projecting only a 1% increase for FY 22‐23 and beyond.

Sales Taxes and Local Measure P Transaction and Use Taxes The amount of sales and local Measure P taxes are approximately 24.8% and 21.2% of the City’s General Fund revenues, respectively for FY 21‐22. The sales tax rate in Fairfield is 8.375%, of which 1% is the "local" or City share and 1% reflects the local use tax. Also included in the 8.375% sales tax is the one‐half cent tax approved by California voters in November 1993 (Proposition 172), which is designated for public safety. This sales tax is shared between the cities and the county. Sales tax is expected to increase slightly in FY 22‐23 due to continued economic recovery following the COVID‐19 pandemic. The Measure P sales taxes are a local sales tax of 1% that was approved by voters in Fairfield in 2012 and subsequently renewed in 2016 for another 15 years, these revenues are used to support the General fund and maintain critical services to the public.

Transfer and Transient Occupancy Tax (Other Taxes)
The revenue received from these taxes is expected to grow at a rate of 2% annually, as these revenues are subject to annual fluctuations in the market based upon real estate and business activity and have been the most impacted during the pandemic.

Personnel Costs
These are based on current staffing levels, a vacancy savings rate ranging from 0% to 4%, impacts of negotiated labor agreements that went into effect July 1, 2022, and impact of proposed staffing changes.

Health and Pension Costs
The City’s health costs increased by 5.5% in FY 21‐22, and are expected to increase by 5% in FY 22‐23. For FY 22‐23 and beyond, the forecast assumes that the City shares the increase in premiums with employees for all but one bargaining unit (which has a 95%/5% sharing between the City and the employee for any increases).

Pension rates for FY 21‐22 are based on information provided by the California Public Employees’ Retirement System (CalPERS), staff and third party estimates of the effects of CalPERS recently lowering its discount rate from 7.5% to 6.8% and the assumption that CalPERS will be able to obtain this rate of return on its investments in the future.

Next Year’s Capital Improvement Program

The City’s adopted capital improvement program (CIP) for FY 22‐23 totals $61.1 million. The CIP is designed to meet community needs, with special emphasis on those projects that contribute to the City’s economic vitality and quality of life, including Fire Station 36, Westnet Alerting System, West Texas Sewer Main Replacement, Annual Street Pavement Maintenance, Sewer Collection System Asset Management Plan, Nelson Hill Reservoir Valve Replacement, Building Facilities and Parks Master Plan, as well as improvements at Allan Witt, Linear Trail and other community and neighborhood parks.

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City of Fairfield, California
Management Discussion and Analysis

16 Next Year’s Capital Improvement Program (Continued)

Some of the major projects for FY 22‐23 (and their costs) include the following:

 Various City Park Improvements (Allan Witt, Linear Trail) ($11.8 million), which includes improvements to play areas and skate park, as well as improvements to the Linear Park Trail to add amenities. This project is funded with AB 1600 Park funds, Quimby Act funds and Assembly Bill 178.

 West Texas Sewer Main Replacement ($3.1 million). This project is funded with ARPA funds.

 Various Street Resurfacing and Pavement Maintenance Project ($4.9 million), which is funded primarily with General and gas tax funds.

 Fire Station 36 ($5.4 million), which will provide much needed coverage to the western side of the Green Valley area.

This project is funded with CFD 3 funds.

Contacting the City’s Financial Management

This Annual Comprehensive Financial Report (ACFR) is designed to provide a general overview of the City’s finances. This report can be obtained at no cost from the City’s website at https://www.fairfield.ca.gov/government/city‐ departments/finance/financial‐reports. If you have questions about this report, or need any additional financial information, contact the City’s Finance Department at 1000 Webster Street, Fairfield, CA 94533, phone 707‐428‐7515.

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City of Fairfield, California
Government‐Wide Financial Statements

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City of Fairfield, California

Statement of Net Position
June 30, 2022
The notes to the basic financial statements are an integral part of this statement.

18 Governmental Business‐Type
Activities Activities Total
Assets:

Cash and investments (Notes 1D and 4) 249,701,916$ 80,170,751$ 329,872,667$ Receivables, net (Note 5) 93,175,159 21,948,138 115,123,297 Inventory (Note 1G) 844,926 235,586 1,080,512 Prepaid items (Note 1G) 686,883 686,883 Restricted cash and investments (Notes 1E and 4) 6,156,946 25,442,544 31,599,490 Land held for development (Note 1P) 6,485,679 6,485,679 Internal balances (Note 3) 7,346,708 (7,346,708) ‐ Investment in joint agencies (Note 1H) 521,308 521,308 Capital assets (Notes 1I and 6):

Nondepreciable 66,969,684 27,157,667 94,127,351 Depreciable, net 301,803,122 139,815,585 441,618,707 Total capital assets 368,772,806 166,973,252 535,746,058 Total assets 733,171,023 287,944,871 1,021,115,894 Deferred Outflows of Resources (Note 1J):

Deferred charge on refunding 1,587,683 58,469 1,646,152 Deferred outflows related to OPEB (Note 1L and Note 14) 217,666 217,666 Deferred outflows related to pensions (Note 1K and 13) 25,817,743 3,813,195 29,630,938 Total deferred outflows of resources 27,623,092 3,871,664 31,494,756 Liabilities:

Accounts payable and other current liabilities (Note 7) 23,006,067 6,393,224 29,399,291 Interest payable (Note 8) 94,974 35,987,558 36,082,532 Unearned revenue (Note 1Q) 4,274,811 806,798 5,081,609 Long‐term obligations (Note 8):

Due within one year 10,131,748 4,058,334 14,190,082 Due in more than one year 159,434,595 80,381,206 239,815,801 Total liabilities 196,942,195 127,627,120 324,569,315 Deferred Inflows of Resources (Note 1J):

Deferred inflows related to OPEB (Note 1L and Note 14) 266,874 266,874 Deferred inflows related to pensions (Notes 1K and 13) 48,768,210 7,501,425 56,269,635 Deferred inflows related to leases (Notes 1N and 9) 14,530,623 14,530,623 Total deferred inflows of resources 63,565,707 7,501,425 71,067,132 Net Position (Note 11):

Net investment in capital assets 360,654,310 103,717,574 464,371,884 Restricted for:

Capital projects 65,412,761            65,412,761
Debt service 1,138,281              471,681              1,609,962 Community development and Housing 64,664,774            64,664,774 Special projects 38,458,706            38,458,706
Major maintenance 28,111,605        28,111,605
Outreach Independence:

Expendable 36,077                    36,077
Nonexpendable 335,375                  335,375
Total restricted 170,045,974          28,583,286        198,629,260 Unrestricted (30,414,071)           24,387,130        (6,026,941) Total net position 500,286,213$        156,687,990$    656,974,203$ Primary Government
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City of Fairfield, California

Statement of Activities
For the Year Ended June 30, 2022
The notes to the basic financial statements are an integral part of this statement.

19 Program Revenues
Operating Capital
Charges for Grants and Grants and
Functions/Programs Expenses Services Contributions Contributions Total Primary government:

Governmental activities
Administration 13,350,813$ 384,413$ 2,307,446$ 2,691,859$ Finance 1,041,827 46,969 7,682$ 54,651 Police 48,046,571 2,429,531 1,555,675 3,985,206 Fire 26,677,805 1,488,487 3,237,821 4,726,308 Public works 42,785,178 490,823 10,186,401 22,338,783 33,016,007 Community development 5,738,204 409,346 854,187 1,263,533 Housing 15,575,305 12,333,091 12,333,091 Parks and recreation 6,956,929 1,129,383 733,713 2,301,595 4,164,691 Interest on long‐term debt 1,195,638 ‐
Total governmental activities 161,368,270 6,378,952 28,908,570 26,947,824 62,235,346 Business‐type activities:

Water utility 33,665,670 37,313,663 4,327,472 41,641,135 North bay treatment plant 9,321,685 9,968,690 9,968,690 Transportation 15,362,231 866,972 11,434,255 179,317 12,480,544 Golf courses 5,947,716 6,290,695 6,290,695 Total business‐type activities 64,297,302 54,440,020 11,434,255 4,506,789 70,381,064 Total primary government 225,665,572$ 60,818,972$ 40,342,825$ 31,454,613$ 132,616,410$ General Revenues and Transfers:

Taxes:

Property taxes
Sales taxes
Transaction and use taxes
Franchise taxes
Utility user taxes
Transient occupancy taxes
Business license taxes
Other taxes
Total taxes
Unrestricted intergovernmental revenues
Investment earnings
Net decrease in fair value of investments
Miscellaneous
Transfers (Note 3)
Total general revenues and transfers
Change in net position
Net position ‐ beginning of year, as restated (Note 21) Net position ‐ end of year
Packet Page 162 of 812Attachment 1 Page 40 of 188

The notes to the basic financial statements are an integral part of this statement.

20 Governmental Business‐Type
Activities Activities Total
(10,658,954)$        (10,658,954)$
(987,176)                (987,176)
(44,061,365)          (44,061,365)
(21,951,497)          (21,951,497)
(9,769,171)             (9,769,171)
(4,474,671)             (4,474,671)
(3,242,214)             (3,242,214)
(2,792,238)             (2,792,238)
(1,195,638)             (1,195,638)
(99,132,924)          (99,132,924)
7,975,465$            7,975,465
647,005                 647,005
(2,881,687)             (2,881,687)
342,979                 342,979
6,083,762              6,083,762
(99,132,924)          6,083,762              (93,049,162) 36,348,069            36,348,069
30,282,631            30,282,631
25,896,769            25,896,769
5,971,026              5,971,026
4,314,928              4,314,928
2,218,312              2,218,312
1,674,229              1,674,229
1,695,465              1,695,465
108,401,429         108,401,429
17,018,236            17,018,236
2,886,075              915,002                 3,801,077 (9,998,218)             (3,878,019)             (13,876,237) 9,681,503              1,981,639              11,663,142 364,638                 (364,638)                 ‐
128,353,663         (1,346,016)             127,007,647 29,220,739            4,737,746              33,958,485 471,065,474         151,950,244         623,015,718
500,286,213$       156,687,990$       656,974,203$
and Changes in Net Position
Net (Expense) Revenue

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City of Fairfield, California
People and Places in the City

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City of Fairfield, California
Governmental Funds Financial Statements

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City of Fairfield, California

Balance Sheet
Governmental Funds
June 30, 2022
The notes to the basic financial statements are an integral part of this statement.

23 General Low Mod
Fund Income Housing
Assets:

Cash and investments (Notes 1D and 4) 47,863,856$ 4,921,833$ Receivables, net (Note 5) 28,748,782 30,880,748 Restricted cash and investments (Notes 1E and 4) 5,764,224 Land held for development (Note 1P) 6,485,679
Total assets 82,376,862$ 42,288,260$
Liabilities:

Accounts payable and other current liabilities (Note 7) 9,575,060$ 1,025$ Advances from other funds (Note 3)
Unearned revenues (Note 1Q) 227,736
Total liabilities 9,802,796 1,025
Deferred Inflows Of Resources (Note 1J):

Lease related‐ (lessor) (Note 1N and 9) 14,530,623
Unavailable revenue‐receivables 1,236,966 2,178,171 Total deferred inflows of resources 15,767,589 2,178,171 Fund Balances (Notes 1O and 12):

Nonspendable
Restricted 5,882,751          40,109,064
Committed 3,623,465
Assigned
Unassigned 47,300,261
Total fund balances 56,806,477        40,109,064
Total liabilities, deferred inflows of
resources, and fund balances 82,376,862$     42,288,260$ Major Funds

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The notes to the basic financial statements are an integral part of this statement.

24 Total
Non‐Major Total
Special City Governmental Governmental
Programs Capital Projects         Funds                 Funds 4,285,260$                60,054,681$           64,439,595$           181,565,225$ 986,741                      380,075                   19,874,860             80,871,206 392,722                   6,156,946
‐                                 6,485,679
5,272,001$                60,434,756$           84,707,177$           275,079,056$ 586,428$                   10,240,982$           1,255,565$             21,659,060$ 736,000                   736,000
4,047,075                                                      ‐                                 4,274,811 4,633,503                  10,240,982             1,991,565                26,669,871 ‐                                 14,530,623
3,191,519                6,606,656
‐                                ‐                            3,191,519                21,137,279 335,375                   335,375
638,498                      45,813,429             61,469,716             153,913,458 16,079,866             19,703,331
4,380,345                1,639,136                6,019,481 ‐                                 47,300,261
638,498                      50,193,774             79,524,093             227,271,906 5,272,001$                60,434,756$           84,707,177$           275,079,056$ Major Funds

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City of Fairfield, California

Reconciliation of the Governmental Funds Balance Sheet to the Government‐Wide Statement of Net Position

June 30, 2022
The notes to the basic financial statements are an integral part of this statement.

25 Reconciliation Statement of N
Total Fund Balances ‐ Total Governmental Funds 227,271,906$ Amounts reported for Governmental Activities in the Statement of Net Position are different because:

Capital assets used in governmental activities are not current financial resources and thereforearenotreported in theGovernmental Funds BalanceSheet. Exceptfor theInternal Service Funds amount of $24,242,599, the capital assets were adjusted as follows:

Nondepreciable Assets 62,555,333
Depreciable buildings, property, equipment, and infrastructure, net 281,974,874 Total Capital Assets, net of accumulated depreciation 344,530,207 Interestpayable on long‐term debtdoes notrequire currentfinancial resources. Therefore, interest payable is not reported as a liability in the Governmental Funds Balance Sheet. (94,947) Internal Service Funds are used by management to charge the costs of certain activities, such as insurance and fleetmanagement, to individual funds. The assets and liabilities of the Internal Service Funds are included in governmental activities in theGovernment‐Wide Statement of Net Position.79,867,651
Deferred inflows recorded in governmental fund financial statements resulting from activities in which revenues were earned but funds were not available,were recognized as revenues in the Government‐Wide Financial Statements. 6,606,656 Deferred outflows and deferred inflows related to pensions are only reported in the Government‐Wide Statement of Net Position. (22,950,467) Deferred charges on refunding of debt arenot reported in theGovernmental Funds Balance SheetbutarereportedintheGovernment‐Wide Statement of Net Position, and amortized over time.1,587,683
Long‐termliabilities arenotdueand payablein the currentperiod and therefore they are not reported in the Governmental Funds Balance Sheet. Except for the Internal Service Funds amount of $33,033,867, the long‐term liabilities were adjusted as follows:

Long‐term liabilities ‐ due within one year (2,539,379) Long‐term liabilities ‐ due in more than one year (133,993,097) Total long‐term liabilities (136,532,476)
Net Position of Governmental Activities 500,286,213$

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City of Fairfield, California
People and Places in the City

26 Packet Page 169 of 812Attachment 1 Page 47 of 188

City of Fairfield, California

Statement of Revenues, Expenditures and
Changes in Fund Balances
Governmental Funds
For the Year Ended June 30, 2022

The notes to the basic financial statements are an integral part of this statement.

27 General Low Mod
Fund Income Housing
Revenues:

Property taxes 35,957,079$
Sales taxes 30,282,631
Transaction and use taxes (Measure P) 25,896,769
Utility and franchise taxes 10,285,953
Other taxes 6,292,012
Development fees
Special assessments levied
Licenses, permits and fines 3,934,657
Developers' contributions
Intergovernmental 696,958
Charges for services 7,859,790
Investment income 827,087                224,774$
Net decrease in fair value of investments (3,658,668)            (192,838) Miscellaneous 3,734,139             3,628
Total revenues 122,108,407        35,564
Expenditures:

Current:

Administration 4,466,926
Finance 1,659,903
Police 49,350,555
Fire 26,774,174
Public works 14,608,124
Parks and recreation 5,861,144
Community development 4,780,518
Housing services 2,937,412 Non‐departmental 9,111,044
Capital outlay
Debt service:

Principal retirement 90,519
Interest 2,554
Fiscal agent fees
Total expenditures 116,705,461 2,937,412
Excess (deficiency) of revenues
over (under) expenditures 5,402,946 (2,901,848) Other Financing Sources (Uses):

Leases (as lessee) (Note 1N and 9) 618,455                293,524 Transfers in (Note 3) 18,634,072           1,133,085
Transfers out (Note 3) (20,144,289)         (36,652)
Total other financing sources (uses)(891,762)               1,389,957 Net change in fund balances 4,511,184             (1,511,891) Fund Balances:

Beginning of year, as restated (Note 21) 52,295,293 41,620,955 End of year 56,806,477$ 40,109,064$
Major Funds
Packet Page 170 of 812Attachment 1 Page 48 of 188

The notes to the basic financial statements are an integral part of this statement.

28 Total
Non‐Major Total
Special City Governmental Governmental
Programs Capital Projects Funds Funds
390,990$              36,348,069$
30,282,631
25,896,769
10,285,953
22,655$                3,898,677             10,213,344 7,251,588$                7,251,588
9,009,670             9,009,670
3,934,657
2,271,310                  94,119                   2,365,429 18,862,815           3,942,645                  18,187,162           41,689,580 7,859,790
122,891                406,234                      476,381                2,057,367 (350,686)               (1,788,367)                 (1,773,968)            (7,764,527) 1,101,042             100,584                      216,525                5,155,918 19,758,717           12,183,994                30,499,556           184,586,238 384,383                                                4,851,309 1,659,903
842,918                10,800                   50,204,273 416,187                                                27,190,361 176,682                5,737,087             20,521,893 667,011                46,903                   6,575,058 4,521                     816,315                5,601,354 301,992                12,864,670           16,104,074
9,111,044
17,436,405                1,154,092             18,590,497 2,245,472             2,335,991
1,197,915             1,200,469
17,874                   17,874
2,793,694             17,436,405                24,091,128           163,964,100 16,965,023           (5,252,411)                 6,408,428             20,622,138 336,762                1,248,741
8,282,748                  3,388,675             31,438,580 (16,976,363)         (68,298)                       (9,310,405)            (46,536,007) (16,976,363)         8,214,450                  (5,584,968)            (13,848,686) (11,340)                 2,962,039                  823,460                6,773,452 649,838                47,231,735                78,700,633           220,498,454 638,498$              50,193,774$              79,524,093$        227,271,906$ Major Funds
Packet Page 171 of 812Attachment 1 Page 49 of 188

City of Fairfield, California

Reconciliation of the Governmental Funds Statement of Revenues, Expenditures and Changes in Fund Balance to the Government‐Wide Statement of Activities
For the Year Ended June 30, 2022
The notes to the basic financial statements are an integral part of this statement.

29 Net Change in Fund Balances ‐ Total Governmental Funds 6,773,452$ Amounts reported for governmental activities in the Statement of Activities are different because:

Governmental Funds report capital outlay as expenditures in the amount of $18,590,497. In the Government‐Wide Statement of Activities, a portion of these expenditures, $5,723,750 are reported as capital assets. Additional departmental assets were recorded at $11,206,494 with no loss on retirement of capital assets.11,206,494
Depreciation expense on capital assets is reported in the Government‐Wide Statement of Activities, but it does not require the use of current financial resources. Therefore, depreciation expense is not reported as an expenditure in Governmental Funds. (14,535,355) Amortization expense on capital assets (leases) is reported in the Government‐Wide Statement of Activities, but it does not require the use of current financial resources. Therefore, amortization expense is not reported as an expenditure in Governmental Funds. (118,890) Repayment of lease principal is an expenditure in Governmental Funds, but the repayment reduces long‐term liabilities in the Government‐Wide Statement of Net Position. 129,101 Repaymentof bond principal is an expenditurein Governmental Funds, butthe repaymentreduces long‐term liabilities in the Government‐Wide Statement of Net Position. 2,206,890 Accrued interest expense on long‐term debt is reported in the Government‐Wide Statement of Activities, but it does not require the use of current financial resources. Therefore, accrued interest expense is not reported as an expenditure in Governmental Funds. This amount represents the change in accrued interest from prior year. 4,831 Amortization expense (of Deferred Charges and Bond Issue Discount) is reported in the Government‐Wide Statement of Activities, but it does not require the use of current financial resources. Therefore, amortization expense is not reported as expenditures in Governmental Funds.(156,938)
In the Governmental Funds, receivables not meeting the availability criteria for revenue recognition are recorded as unavailable revenue. In the Government‐Wide Statements, these amounts are recognized as income on the full accrual basis of accounting. 734,786 Internal Service Funds are used by management to charge the costs of certain activities, such as insurance and fleet management, to individual funds. The increase in net position is reported with governmental activities.12,992,897
The change in pension amounts (actuarially determined) are not a use of current financial resources and are not included in the net change in fund balances but are included in thenet position of governmental activities.9,983,471
Change in Net Position of Governmental Activities 29,220,739$ Packet Page 172 of 812Attachment 1 Page 50 of 188

City of Fairfield, California

Statement of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual
General Fund
For the Year Ended June 30, 2022
The notes to the basic financial statements are an integral part of this statement.

30 Budget Actual General Fund
Variance with
Budgeted Amounts Final Budget ‐
Positive
Original Final Actual (Negative)
Revenues:

Property taxes 36,436,000$ 36,436,000$ 35,957,079$ (478,921)$ Sales taxes 25,199,000 25,199,000 30,282,631 5,083,631 Transaction and use taxes (Measure P) 21,728,000 21,728,000 25,896,769 4,168,769 Utility and franchise taxes 9,530,000 9,530,000 10,285,953 755,953 Other taxes 6,021,748 6,021,748 6,292,012 270,264 Licenses, permits and fines 3,209,000 3,209,000 3,934,657 725,657 Intergovernmental 431,984 431,984 696,958 264,974 Charges for services 6,813,617 6,813,617 7,859,790 1,046,173 Investment income 829,778 872,646 827,087 (45,559) Net decrease in fair value of investments (3,658,668) (3,658,668) Miscellaneous 2,159,117 2,159,117 3,734,139 1,575,022 Total Revenues 112,358,244 112,401,112 122,108,407 9,707,295 Expenditures:

Current:

Administration 6,100,028 6,127,790 4,466,926 1,660,864 Finance 1,628,782 1,648,674 1,659,903 (11,229) Police 49,045,960 49,283,515 49,350,555 (67,040) Fire 24,972,769 25,619,760 26,774,174 (1,154,414) Public works 14,681,596 14,720,093 14,608,124 111,969 Parks and recreation 7,980,217 7,998,071 5,861,144 2,136,927 Community development 5,034,454 5,059,587 4,780,518 279,069 Non ‐departmental 5,802,081 5,802,081 9,111,044 (3,308,963) Debt service:

Principal retirement 90,519                (90,519)
Interest 2,554                  (2,554)
Total Expenditures 115,245,887        116,259,571         116,705,461      (445,890) Excess revenues over expenditures (2,887,643)            (3,858,459)             5,402,946          9,261,405 Other Financing Sources (Uses):

Leases (as Lessee)618,455 618,455
Transfers in 1,934,072 18,634,072 18,634,072 ‐ Transfers out (5,630,562) (22,330,562) (20,144,289) 2,186,273 Total other financing sources (uses) (3,696,490) (3,696,490) (891,762) 2,804,728 Net change in fund balance (6,584,133) (7,554,949) 4,511,184 12,066,133 Fund Balance ‐ Beginning of Year, as restated 52,295,293 52,295,293 52,295,293 Fund Balance ‐ End of Year 45,711,160$ 44,740,344$ 56,806,477$ 12,066,133$ Packet Page 173 of 812Attachment 1 Page 51 of 188

City of Fairfield, California

Statement of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual
Low Mod Income Housing Major Special Revenue Fund
For the Year Ended June 30, 2022
The notes to the basic financial statements are an integral part of this statement.

31 Budget Actual Housing Fund
Variance with
Budgeted Amounts Final Budget‐
Positive
Original Final Actual (Negative)
Revenues:

Investment income 239,656$ 239,656$ 224,774$ (14,882)$ Net decrease in fair value of investments (192,838) (192,838) Miscellaneous 3,628 3,628
Total Revenues 239,656 239,656 35,564 (204,092) Expenditures:

Current:

Housing services 3,427,246 3,427,246 2,937,412 489,834 Excess (deficiency) of revenues
over (under) expenditures (3,187,590) (3,187,590) (2,901,848) 285,742 Other Financing (Uses):

Leases (as lessee) 293,524              293,524
Transfers in 1,133,085          1,133,085
Transfers out (52,115)               (52,115)               (36,652)               15,463 Total other financing (uses) (52,115)               (52,115)               1,389,957          1,442,072 Net change in fund balances (3,239,705)         (3,239,705)         (1,511,891)         1,727,814 Fund Balance ‐ Beginning of Year 41,620,955        41,620,955        41,620,955 Fund Balance ‐ End of Year 38,381,250$      38,381,250$      40,109,064$      1,727,814$

Packet Page 174 of 812Attachment 1 Page 52 of 188

City of Fairfield, California

Statement of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual
Special Programs Major Special Revenue Fund
For the Year Ended June 30, 2022
The notes to the basic financial statements are an integral part of this statement.

32 Variance with
Budgeted Amounts Final Budget‐
Positive
Original Final Actual (Negative)
Revenues:

Taxes 22,655$ 22,655$ Intergovernmental 1,136,200$ 1,136,200$ 18,862,815 17,726,615 Investment income 122,891 122,891 Net decrease in fair value of investments (350,686) (350,686) Miscellaneous 763,367 763,367 1,101,042 337,675 Total Revenues 1,899,567 1,899,567 19,758,717 17,859,150 Expenditures:

Current:

Administration 418,665              418,665              384,383              34,282 Police 574,613              574,613              842,918              (268,305) Fire 416,187              (416,187)
Public works 131,021              131,021              176,682              (45,661) Parks and recreation 723,269              723,269              667,011              56,258 Community development 4,521                   (4,521)
Housing services 301,992              (301,992)
Total Expenditures 1,847,568           1,847,568           2,793,694           (946,126) Excess (deficiency) of revenues
over (under) expenditures 51,999                 51,999                 16,965,023         16,913,024 Other Financing (Uses):

Transfers out (186,902) (186,902) (16,976,363) (16,789,461) Total other financing (uses) (186,902) (186,902) (16,976,363) (16,789,461) Net change in fund balances (134,903) (134,903) (11,340) 123,563 Fund Balance ‐ Beginning of Year 649,838 649,838 649,838 Fund Balance ‐ End of Year 514,935$ 514,935$ 638,498$ 123,563$

Packet Page 175 of 812Attachment 1 Page 53 of 188

City of Fairfield, California
People and Places in the City

33 Packet Page 176 of 812Attachment 1 Page 54 of 188

City of Fairfield, California
Proprietary Funds Financial Statements

34 Packet Page 177 of 812Attachment 1 Page 55 of 188

City of Fairfield, California

Statement of Net Position
Proprietary Funds
June 30, 2022
The notes to the basic financial statements are an integral part of this statement.

35 North Bay
Water Treatment
Utility Plant Transportation
Assets:

Current Assets
Cash and investments (Notes 1D and 4) 73,891,216$           4,166,351$ Receivables, net (Note 5) 6,832,890                2,892,243            10,229,184$ Inventory (Note 1G)
Prepaid items (Note 1G)
Due from other funds (Note 3)
Total current assets 80,724,106             7,058,594            10,229,184 Noncurrent Assets
Restricted cash and investments (Notes 1E and 4) 509,774                   23,896,488 Advances to other funds (Note 3) 2,320,504
Investment in joint agencies (Note 1H) 521,308
Loans receivable (Note 5) 1,894,613
Capital assets: (Notes 1I and 6)
Nondepreciable 14,681,878             779,825
Depreciable 223,685,123           66,210,681          33,707,554 Less: accumulated depreciation (123,048,833)         (32,333,570)        (29,882,791) Total capital assets 115,318,168           34,656,936          3,824,763 Total noncurrent assets 116,349,250           62,768,541          3,824,763 Total assets 197,073,356           69,827,135          14,053,947 Deferred Outflows of Resources (Note 1J):

Deferred charge on refunding
Deferred outflows related to OPEB (Note 14)
Deferred outflows related to pension (Note 13) 2,353,906 1,046,380 412,909 Total deferred outflows of resources 2,353,906 1,046,380 412,909 Liabilities:

Current Liabilities
Accounts payable and other current liabilities (Note 7) 2,736,113                349,876                2,368,470 Due to other funds (Note 3)7,346,708
Accrued interest payable (Note 8) 307,302
Unearned revenue (Note 1Q)330,124
Compensated absences (Note 8) 22,263                      26,640                  5,516 Claims and judgments payable (Note 8 and 10)
Long‐term debt ‐ due within one year (Note 8) 3,548,915 Total current liabilities 6,614,593                376,516                10,050,818 Noncurrent Liabilities
Advances from other funds (Note 3) 2,320,504
Accreted interest payable (Note 8) 35,663,575
Compensated absences (Note 8) 719,811                   861,373                178,366 Claims and judgments payable (Notes 8 and 10)
Net pension liability (Note 13) 11,577,664             4,785,803            1,873,582 Net OPEB liability (Note 14)
Long‐term debt ‐ due in more than one year (Note 8) 59,886,611 Total noncurrent liabilities 110,168,165           5,647,176            2,051,948 Total liabilities 116,782,758           6,023,692            12,102,766 Deferred Inflows of Resources (Note 1J):

Deferred inflows related to pensions (Note 13) 4,619,786 2,081,282 800,357 Deferred inflows related to OPEB (Note 14)
Total deferred inflows of resources 4,619,786 2,081,282 800,357 Net Position (Note 11):

Net investment in capital assets 52,392,416             34,656,936          3,824,763 Restricted for major maintenance 28,111,605
Restricted for debt service
Unrestricted 25,632,302             (2,261,030)
Total net position 78,024,718$           62,768,541$       1,563,733$ Business‐type Activities ‐ Enterprise Funds
Packet Page 178 of 812Attachment 1 Page 56 of 188

The notes to the basic financial statements are an integral part of this statement.

36 Governmental
Total Activities
Enterprise Internal
Golf Courses Funds Service Funds
2,113,184$         80,170,751$            68,136,691$
99,208                 20,053,525              256,261
235,586               235,586                    844,926 ‐                                  686,883
‐                                  7,346,708
2,447,978           100,459,862            77,271,469
1,036,282           25,442,544
2,320,504                 736,000
521,308
1,894,613                 12,047,692
11,695,964         27,157,667              4,414,351
20,029,412         343,632,770            40,012,463
(18,551,991)       (203,817,185)          (20,184,215)
13,173,385         166,973,252            24,242,599
14,209,667         197,152,221            37,026,291
16,657,645         297,612,083            114,297,760
58,469                 58,469
217,666
3,813,195
58,469                 3,871,664                 217,666 938,765               6,393,224                 1,347,007 7,346,708
16,681                 323,983                    27
476,674               806,798
54,419                       4,792,312
2,607,528
455,000               4,003,915                 192,529 1,887,120           18,929,047              8,939,403
2,320,504
35,663,575
1,759,550                 13,546,852
11,591,472
18,237,049
20,774
497,996               60,384,607              282,400
497,996               118,365,285            25,441,498 2,385,116           137,294,332            34,380,901
7,501,425
266,874
‐                        7,501,425                 266,874 12,843,459         103,717,574            23,881,287
28,111,605
471,681               471,681
1,015,858           24,387,130              55,986,364
14,330,998$       156,687,990$          79,867,651$
Packet Page 179 of 812Attachment 1 Page 57 of 188

City of Fairfield, California

Statement of Revenues, Expenses and Changes in Net Position Proprietary Funds
For the Year Ended June 30, 2022
The notes to the basic financial statements are an integral part of this statement.

37 North Bay
Water Treatment
Utility Plant Transportation
Operating Revenues:

Charges for services 37,124,305$ 9,968,690$ 772,982$ Miscellaneous 189,358 93,990
Total operating revenues 37,313,663 9,968,690 866,972 Operating Expenses:

Material and supplies
Operating and maintenance 19,056,599 6,200,458 10,525,056 General and administrative 3,523,384 1,223,034 1,688,264 Insurance claims and premiums
Depreciation and amortization 6,514,366 1,618,675 1,214,356 Total operating expenses 29,094,349 9,042,167 13,427,676 Operating income (loss) 8,219,314 926,523 (12,560,704) Nonoperating Revenues (Expenses):

Investment income 664,473               231,585
Net decrease in fair value of investments (2,742,764)          (1,027,526)          (10,236) Interest expense (4,571,321)
Intergovernmental revenue 467,689               11,434,255 Loss on disposition of capital asset (1,934,555)
Other revenue (expense) 1,342,292           (279,518)              149,831 Total nonoperating revenues (expenses)(4,839,631)          (1,075,459)          9,639,295 Income (loss) before capital contributions
and transfers 3,379,683           (148,936)              (2,921,409) Capital contributions:

Connection fees 3,232,289
Intergovernmental revenue 179,317
Developers contributions 1,095,183
Total capital contributions 4,327,472 ‐ 179,317 Transfers (Note 3):

Transfers in
Transfers out (216,899) (103,746) (43,993) Total transfers (216,899) (103,746) (43,993) Change in net position 7,490,256 (252,682) (2,786,085) Net Position:

Beginning of year 70,534,462 63,021,223 4,349,818 End of year 78,024,718$ 62,768,541$ 1,563,733$ Business‐type Activities ‐ Enterprise Funds
Packet Page 180 of 812Attachment 1 Page 58 of 188

The notes to the basic financial statements are an integral part of this statement.

38 Governmental
Total Activities
Enterprise Internal
Golf Courses Funds Service Funds
6,012,896$           53,878,873$          31,477,156$
277,799                 561,147
6,290,695              54,440,020             31,477,156 9,605,294
5,558,567              41,340,680             9,620,986 6,434,682               4,968,354
6,712,031
323,132                 9,670,529               2,823,252 5,881,699              57,445,891             33,729,917 408,996                 (3,005,871)              (2,252,761) 18,944                    915,002                   468,602 (97,493)                  (3,878,019)              (2,280,755) (66,017)                  (4,637,338)              (3,221) 11,901,944             196,022
(1,934,555)
21,827                    1,234,432               1,402,945 (122,739)                3,601,466               (216,407) 286,257                 595,595                   (2,469,168)

3,232,289
179,317
1,095,183
‐                               4,506,789                ‐ 16,940,000
(364,638)                 (1,477,935)
‐                               (364,638)                 15,462,065 286,257                 4,737,746               12,992,897 14,044,741           151,950,244          66,874,754
14,330,998$         156,687,990$        79,867,651$
Packet Page 181 of 812Attachment 1 Page 59 of 188

City of Fairfield, California

Statement of Cash Flows
Proprietary Funds
For the Year Ended June 30, 2022
The notes to the basic financial statements are an integral part of this statement.

39 North Bay
Water Treatment
Utility Plant Transportation
Cash Flows from Operating Activities:

Receipts from customers and users 37,260,357$ 10,141,167$ 881,357$ Receipts from interfund services provided
Payments to suppliers (11,855,699) (5,197,881) (8,454,283) Payments to employees (6,923,866) (2,543,903) (1,309,405) Payments for interfund services used (5,763,225) (487,947) (3,406,175) Net cash provided by (used for) operating activities 12,717,567 1,911,436 (12,288,506) Cash Flows from Noncapital Financing Activities:

Grants 467,689               2,722,630
Proceeds from interfund loan 7,346,708
Receipt of other revenue
Transfers in
Transfers out (216,899)              (103,746)            (43,993) Net cash provided by (used for) noncapital
financing activities 250,790               (103,746)            10,025,345 Cash Flows from Capital and Related Financing Activities:

Principal payments ‐bonds (3,663,880)
Principal payments ‐notes payable
Receipts on notes receivable
Interest received on notes receivable
Capital distribution (1,322,428)
Principal payments ‐ lease liabilities
Interest payments ‐ lease liabilities
Interest paid (4,086,325)
Fiscal agent fees paid (9,330)
Connection fees 3,232,289
Capital contribution 542,512
Grants
Proceeds from sales of capital assets 1,343,327 1,322,428 Acquisition and construction of capital assets (7,061,750) (75,345) (179,317) (10,245,669) (75,345) 363,195

Cash Flows from Investing Activities:

Investment income received (2,103,465) (804,090) (7,096) Net cash provided by investing activities (2,103,465) (804,090) (7,096) Net increase (decrease) in cash and cash equivalents 619,223 928,255 (1,907,062) Cash and Cash Equivalents:

Beginning of year 73,781,767 27,134,584 1,907,062 End of year 74,400,990$ 28,062,839$ ‐$
Business‐type Activities ‐ Enterprise Funds
Net cash provided by (used by) capital
and related financing activities
Packet Page 182 of 812Attachment 1 Page 60 of 188

The notes to the basic financial statements are an integral part of this statement.

40 Governmental
Total Activities
Enterprise Internal
Golf Courses Funds Service Funds
6,262,288$      54,545,169$
31,477,155$
(5,322,443)       (30,830,306)       (28,193,814)
(10,777,174)       (11,082,912)
(9,657,347)         (1,044,330)
939,845           3,280,342           (8,843,901)
3,190,319
7,346,708
1,110,989
16,940,000
(364,638)             (1,477,935)
10,172,389        16,573,054
(440,000)          (4,103,880)
(257,734)

(1,322,428)
(24,778)
(1,903)
(40,512) (4,126,837) (3,287)
(9,330)
(5,178) 3,227,111
542,512

6,050                2,671,805           318,064
(521,661)          (7,838,073)         (5,814,819)
(1,001,301)       (10,959,120)       (5,784,457)
(77,275)            (2,991,926)         (1,602,630)
(77,275)            (2,991,926)         (1,602,630)
(138,731)          (498,315)             342,066
3,288,197        106,111,610      67,794,625
3,149,466$      105,613,295$    68,136,691$
Packet Page 183 of 812Attachment 1 Page 61 of 188

City of Fairfield, California

Statement of Cash Flows (continued)
Proprietary Funds
For the Year Ended June 30, 2022
The notes to the basic financial statements are an integral part of this statement.

41 Statement of Cash Flows Part 2
North Bay
Water Treatment
Utility Plant Transportation
Reconciliation of Operating Income to Net Cash
Provided by (Used for) Operating Activities:

Operating income (loss) 8,219,314$ 926,523$ (12,560,704)$ Adjustments to reconcile operating income (loss)
to net cash provided by (used for) operating activities:

Depreciation and amortization expense 6,514,366            1,618,675          1,214,356 (Increase) decrease in receivable (53,306)                176,143              14,385 Decrease in loans receivable 18,524
(Increase) decrease in inventory
(Increase) decrease in prepaid items 18,000
(Increase) decrease in advances to other funds (44,549) Increase in advances from other funds 44,549
(Increase) decrease in deferred outflows (1,841,062)          (821,860)            (322,073) Increase (decrease) in accounts payable (731,177)              (298,367)            (799,213) Increase in compensated absences (24,575)                (101,092)            8,179 Increase in claims and judgments payable
Increase in net OPEB obligation
(Decrease) in unearned revenue
(Increase) decrease in due to other funds
Non‐cash expense 589,458               437,439              138,564 Total adjustment 4,498,253            984,913              272,198 Net cash provided by (used for) operating activities 12,717,567$       1,911,436$        (12,288,506)$ Non‐cash transactions:
1,095,183$
Business‐type Activities ‐ Enterprise Funds
Contributions of capital assets from developers
Lease liability for the acquisition of right to use asset Packet Page 184 of 812Attachment 1 Page 62 of 188

The notes to the basic financial statements are an integral part of this statement.

42 Governmental
Total Activities
Enterprise Internal
Golf Courses Funds Service Funds
408,996$         (3,005,871)$       (2,252,761)$
323,132           9,670,529           2,823,252
(28,407)            108,815              (2,187)
18,524
(1,018)               (1,018)                 63,353
18,000                (89,219)
(44,549)               (736,000)
44,549
(2,984,995)         (217,666)
197,356           (1,631,401)         231,507
(117,488)             (476,111)
(841,361)
‐
39,786              39,786
(7,346,708)
1,165,461
530,849           6,286,213            (6,591,140)
939,845$         3,280,342$        (8,843,901)$
(380,552)$
1,095,183$
Packet Page 185 of 812Attachment 1 Page 63 of 188

City of Fairfield, California
Fiduciary Funds Financial Statements

43 Packet Page 186 of 812Attachment 1 Page 64 of 188

City of Fairfield, California

Statement of Fiduciary Net Position
Fiduciary Funds
June 30, 2022
The notes to the basic financial statements are an integral part of this statement.

44 Successor Agency
to the Fairfield
Redevelopment Agency
Custodial Private‐Purpose
Funds Trust Fund
Assets:

Cash and investments (Note 4) 10,846,579$       3,843,042$ Receivables, net 4,030,144            1,524,958
Restricted cash and investments (Note 4)20,699,058         703,779 Land held for resale (Note 19)3,920,066
Total assets 35,575,781         9,991,845
Liabilities:

Accounts payable and other current liabilities 14,939,732 Interest payable 791,655 336,124
Loans payable to Fairfield Housing Authority (Note 19)297,083 Loans payable to City of Fairfield (Note 19)12,157,381 Long‐term debt ‐ due within one year (Note 19)2,990,000 Long‐term debt ‐ due in more than one year (Note 19)12,984,418 Total liabilities 15,731,387 28,765,006
Net Position (Deficit):

Restricted for:

Individuals, organizations and other governments 19,844,394$ (18,773,161)$ Net Position Fiduciary Funds
Packet Page 187 of 812Attachment 1 Page 65 of 188

City of Fairfield, California

Statement of Changes in Fiduciary Net Position
Fiduciary Funds
For the Year Ended June 30, 2022

The notes to the basic financial statements are an integral part of this statement.

45 Successor Agency
to the Fairfield
Redevelopment Agency
Custodial Private‐purpose
Funds Trust Fund
Additions:

Collection of other fees 4,733,975$
Collection for other governments 26,506,124
Contributions from members 20,000
Special assessments 4,621,714
Property taxes 4,534,630$
Investment income 119,434            23,067
Net decrease in fair value of investments (385,273)           (139,788) Bond proceeds and premium 38,696,657
Miscellaneous 144,622
Total Additions 74,312,631       4,562,531
Deductions:

Distribution of other fees 4,573,574
Distributions to other governments 24,662,267
Program and administrative expenses 2,613,913
Interest expense 3,998,451
Principal payment on bonds 715,000
Developer reimbursements 33,205,677
Enforceable obligations 607,761
Total deductions 69,768,882 607,761

Change in Net Position 4,543,749 3,954,770
Net Position ‐ Beginning of Year 15,300,645 (22,727,931) Net Position ‐ End of the Year 19,844,394$ (18,773,161)$

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City of Fairfield, California
People and Places in the City

46 Packet Page 189 of 812Attachment 1 Page 67 of 188

City of Fairfield, California

Notes to Basic Financial Statements
For the Year Ended June 30, 2022

47 1) Summary of Significant Accounting Policies .............................................................................................. 48 2) Property Taxes ......................................................................................................................................... 58 3) Interfund Transactions ............................................................................................................................. 59 4) Cash and Investments .............................................................................................................................. 61 5) Receivables .............................................................................................................................................. 67 6) Capital Assets ........................................................................................................................................... 69 7) Accounts Payable and Other Current Liabilities ......................................................................................... 71 8) Long‐Term Obligations ............................................................................................................................. 72 9) Leases ...................................................................................................................................................... 77 10) Risk Management and Insurance .............................................................................................................. 78 11) Classification of Net Position .................................................................................................................... 79 12) Fund Balances .......................................................................................................................................... 80 13) Retirement Plans ...................................................................................................................................... 80 14) Other Post‐Employment Benefits (OPEB) .................................................................................................. 86 15) Tax Abatements‐Economic Development Incentives ................................................................................. 89 16) Commitment and Contingent Liabilities .................................................................................................... 90 17) Excess of Expenditures over Appropriations and Negative Fund Balances/Net Position ............................. 90 18) North Bay Treatment Plan ........................................................................................................................ 91 19) Successor Agency Trust for Assets of Former Redevelopment Agency ....................................................... 91 20) Debt with No City Commitment ................................................................................................................ 95 21) Prior Period Adjustment ........................................................................................................................... 96 22) Subsequent Event .................................................................................................................................... 96 Packet Page 190 of 812Attachment 1 Page 68 of 188

City of Fairfield, California

Notes to Basic Financial Statements (continued)
For the Year Ended June 30, 2022

48 1) Summary of Significant Accounting Policies

A. Organization and Reporting Entity

The City of Fairfield (the City) was incorporated on December 12, 1903, under the laws of the State of California.

The City is a general law city administered by a Council‐Manager form of government. As required by generally accepted accounting principles, these financial statements present the City and its component units, entities for which the City is considered to be financially accountable.

Component units, although legally separate entities, are, in substance, part of the City’s operations and data from these units are combined with data of the City. Based on the above criteria, the accompanying financial statements include the financial activities of these component units:

Fairfield Public Financing Authority
Fairfield Water Facilities Improvement District No. 1
Fairfield Municipal Park Improvement District No. 1
Fairfield Storm Drain Facilities Improvement District No. 1 Fairfield Community Facilities Districts
Housing Authority of the City of Fairfield

These entities are legally separate from each other; however, the City Council serves in separate session as the governing body of these related agencies. The financial activities of these entities are integrally related to those of the City and blended with those of the City. Blending involves aggregating/merging component unit data and data from the City at both the Government‐Wide and Fund Financial Statement level.

Each of the component units or activities included in the Government‐Wide and Fund Financial Statements are blended components because the governing body of the City is the same or substantially as that of the Authority (or District) and management of the City has operational responsibility for the entity. These component units are described below:

i. Fairfield Public Financing Authority

The Fairfield Public Financing Authority (the Financing Authority) is a public agency created under a joint exercise of powers agreement between the City and the former Redevelopment Agency (now Successor Agency). The Financing Authority was created for the purpose of providing financing of public capital improvements for the City and the former Agency. The City Council is the governing board of the Financing Authority.

ii. Fairfield Water Facilities Improvement District No. 1

The Fairfield Water Facilities Improvement District No. 1 (the Water Improvement District) is a voter‐approved improvement district formed in 1972 to finance and build water treatment and storage facilities. The City Council is the governing board of the Water Improvement District. The entity is a blended component because the governing body of the City is the same as that of the District and management of the City has operational responsibility for the District.

iii. Fairfield Municipal Park Improvement District No. 1

The Fairfield Municipal Park Improvement District No. 1 (the Park Improvement District) is a voter‐approved improvement district formed in 1972 to finance acquisition and construction of parks and recreational facilities. The City Council is the governing board of the Park Improvement District. The entity is a blended component because the governing body of the City is the same as that of the District and management of the City has operational responsibility for the District.

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City of Fairfield, California

Notes to Basic Financial Statements (continued)
For the Year Ended June 30, 2022

49 iv. Fairfield Storm Drain Facilities Improvement District No. 1

The Fairfield Storm Drain Facilities Improvement District No. 1 (the Storm Drain Facilities Improvement District) is a voter‐approved improvement district formed in 1972 to finance construction of storm drainage facilities. The City Council is the governing board of the Storm Drain Facilities Improvement District. The entity is a blended component because the governing body of the City is the same as that of the District and management of the City has operational responsibility for the District.

v. Fairfield Community Facilities Districts

The City of Fairfield Community Facilities Districts were created in accordance with the State of California Mello‐ Roos Community Facilities Act of 1972. The Districts were formed to levy special taxes, issue bonds, and obtain loans supported by special taxes for open space and general traffic and street improvements. The City Council is the governing board of the Fairfield Community Facilities Districts. The entity is a blended component because the governing body of the City is the same as that of the Districts and management of the City has operational responsibility for the Districts.

vi. Housing Authority of the City of Fairfield

The Housing Authority of the City of Fairfield (the Housing Authority) is organized under the California Health and Safety Code. The objectives of the Housing Authority are to preserve and increase the supply of affordable housing; to aid low‐income families in obtaining decent, safe and sanitary housing through Federal assistance programs and low/moderate income housing programs; and to oversee the housing assets of the former redevelopment agency.

The Housing Authority is governed by a Board of Commissioners composed of five City Council members and two members of the public. This entity is a blended component because the governing body of it and the City are substantively the same and management of the City has operational responsibility for the Authority.

B. Measurement Focus, Basis of Accounting, and Financial Statement Presentation

The financial statements of the City have been prepared in conformity with generally accepted accounting principles (GAAP) as applied to governmental units. The Governmental Accounting Standards Board (GASB) is the accepted standard setting body for governmental accounting and financial reporting principles. These statements implement all the applicable GASB statements.

The accounts of the City and its component units are organized and operated on the basis of fund accounting. A fund is an independent fiscal and accounting entity with a self‐balancing set of accounts. Fund accounting segregates funds according to their intended purpose and is used to aid management in demonstrating compliance with finance‐related legal and contractual provisions. The minimum number of funds is maintained consistent with legal and managerial requirements.

i. Government ‐ Wide Financial Statements
The City Government‐Wide Financial Statements include a Statement of Net Position and a Statement of Activities.

These statements present summaries of Governmental and Business‐Type Activities for the City accompanied by a total column. Fiduciary activities of the City are not included in these statements.

These statements are presented on an “economic resources” measurement focus and the accrual basis of accounting. Accordingly, all of the City’s assets, deferred outflows of resources, liabilities and deferred inflows of resources, including capital assets, as well as infrastructure assets, and long‐term liabilities, are included in the accompanying Statement of Net Position. The Statement of Activities presents changes in net position. Under the accrual basis of accounting, revenues are recognized in the period in which they are earned, while expenses are recognized in the period in which the liability is incurred. 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 Packet Page 192 of 812Attachment 1 Page 70 of 188

City of Fairfield, California

Notes to Basic Financial Statements (continued)
For the Year Ended June 30, 2022

50 that are clearly identifiable with a specific function or segment. The types of transactions reported as program revenues for the City are reported in three categories: 1) charges for services, 2) operating grants and contributions, and 3) capital grants and contributions. Taxes and other items not included among program revenues are reported instead as general revenues.

Certain eliminations have been made in regards to interfund activities, payables and receivables. All internal balances in the Statement of Net Position have been eliminated, except those representing balances between the governmental activities and the business‐type activities, which are presented as internal balances and eliminated in the total primary government column. In the Statement of Activities, internal service fund transactions have been eliminated; however, those transactions between governmental and business‐type activities have not been eliminated.
ii. Governmental Fund Financial Statements

Governmental Fund Financial Statements include a Balance Sheet and a Statement of Revenues, Expenditures and Changes in Fund Balances for all major governmental funds and non‐major funds as aggregated. An accompanying reconciliation schedule is presented to explain the differences in governmental fund balances as presented in these statements to the net position presented in the Government‐Wide financial statements.

All governmental funds are accounted for on a spending or “current financial resources” measurement focus and the modified accrual basis of accounting. Accordingly, only current assets, current liabilities, and deferred inflows of resources are included on the Balance Sheet. The Statement of Revenues, Expenditures and Changes in Fund Balances present increases (revenues and other financing sources) and decreases (expenditures and other financing uses) in net current assets. Under the modified accrual basis of accounting, revenues are recognized when susceptible to accrual (i.e., when they are “measurable and available”). “Measurable” means the amount of the transaction can be determined and “available” means collectible within the current period or soon enough thereafter to pay liabilities of the current period. The City considers property taxes revenues to be available if they are collected within 60 days after year‐end. All other revenues reported in the governmental funds are considered to be available if they are received within 90 days after year‐end, except for grants, which is one year. Property taxes, sales tax, franchise taxes, licenses, interest, grants, and special assessments are susceptible to accrual.

Revenue from grants, entitlements, and donations is recognized in the fiscal year in which all eligibility requirements have been satisfied. Expenditures are recorded when the related fund liability is incurred, except for unmatured interest, which is recognized when due, and certain compensated absences and claims and judgments, which are recognized when the obligations are expected to be liquidated with expendable available financial resources.

The City has presented all major funds that met the applicable criteria. The City reports the following as major governmental funds:

General Fund ‐ is the general operating fund of the City. It is used to account for all financial resources except those which are restricted as to use.

Low Mod Income Housing Special Revenue Fund ‐ is used to account for housing assets, housing functions, and all housing responsibilities previously performed by the now defunct Redevelopment Agency, including financial development and rehabilitation of low and moderate income housing units, including all revolving loan fund programs. The fund is restricted to account for the use of the resources that will increase, improve and preserve the supply of housing available for the low and moderate‐income households. The primary source of funding is interest income, the repayment of loans receivables, and the sale of land.

Special Programs ‐ is used to account for monies received from various Federal, State, and Regional Grants.

City Capital Projects Fund ‐ is used to account for construction projects. The primary sources of funding have been City‐levied development taxes, State Gas Tax, Local Transportation Tax, Traffic Safety Funds and temporary loans to projects.

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City of Fairfield, California

Notes to Basic Financial Statements (continued)
For the Year Ended June 30, 2022

51 iii. Proprietary Fund Financial Statements

Proprietary Fund Financial Statements include a Statement of Net Position, a Statement of Revenues, Expenses and Changes in Net Position, and a Statement of Cash Flows for each major proprietary fund.

A column representing internal service funds is also presented in these statements. However, internal service balances and activities have been combined with the governmental activities in the Government‐Wide financial statements. Internal Service Funds provide a variety of services to all City departments such as printing and mailing, automotive, communication, cogeneration and Civic Center maintenance, insurance requirements, as well as loans and advances.

Proprietary Funds are accounted for using the “economic resources” measurement focus and the accrual basis of accounting. Accordingly, all assets and liabilities (whether current or non‐current) are included on the Statement of Net Position. The Statement of Revenues, Expenses and Changes in Net Position presents increases (revenues) and decreases (expenses) in total net position. Under the accrual basis of accounting, revenues are recognized in the period in which they are earned, while expenses are recognized in the period in which the liability is incurred.

Operating revenues in the proprietary funds are those revenues that are generated from the primary operations of the fund. All other revenues are reported as non‐operating revenues. Operating expenses are those expenses that are essential to the primary operations of the fund. All other expenses are reported as non‐operating expenses.

The City has presented all proprietary funds as major funds because the City believes the financial position and activities of these funds are significant to the City as a whole. The City of Fairfield reports the following major proprietary fund types:

Water Utility Fund ‐ accounts for the operations of the water system. This is a self‐supporting activity which provides water services on a user charge basis to residences and businesses located in the City.

North Bay Treatment Plant ‐ used to account for the operations of a joint water treatment plant built by the cities of Fairfield and Vacaville. This plant supplies treated water to both the cities. The City of Fairfield is the designated administrator and operator of the plant.

Transportation Fund ‐ accounts for the operations of the City’s transportation system for a fixed route and demand response service which, along with fare box revenues, receives grants from the Transportation Development Act (TDA) and the Federal Transit Administration (FTA) and state and regional funding.

Golf Courses Fund ‐ accounts for the operations of the two City‐owned public golf courses (Rancho Solano and Paradise Valley). The revenue generated from the courses is used to pay the debt service payments on the bond issues with which the courses were constructed.

The City reports the following internal service funds:

Central Services Fund ‐ accounts for the printing, copying, and mail services provided to the various City departments; as well as accounting for public work maintenance supplies for the various City departments.

Vehicle Services/Replacement Fund ‐ accounts for automotive services performed for the various City departments as well as accounting for the City’s Vehicle Replacement Fund.

Information Technology Fund ‐ accounts for the charges to the various departments for the use and maintenance of the main power supplies for various communication devices such as hand radios, phones, computers, and closed circuit video cameras throughout the City.

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City of Fairfield, California

Notes to Basic Financial Statements (continued)
For the Year Ended June 30, 2022

52 Intragovernmental Loan Fund ‐ accounts for loans made to City funds or affiliated agencies.

Insurance Fund ‐ accounts for all insurance activities of the City excluding OPEB.

Retiree Insurance (OPEB) Fund ‐ accounts for payment of Other‐Post‐Employment Benefits including medical and dental premiums for retired executive management employees.

Public Facilities Fund ‐ accounts for the operation of the cogeneration facilities, the major maintenance of the Civic Center complex, Parks, Fire Department Facilities and equipment.

Compensated Absences Fund ‐ accounts for the funding and tracking of the liabilities for vacation, personal leave, and sick leave for the Governmental Activities of the City.

iv. Fiduciary Fund Financial Statements

Fiduciary Fund Financial Statements include a Statement of Fiduciary Net Position and Statement of Changes in Fiduciary Net Position. The City’s Fiduciary funds represent Custodial Funds and Private Purpose Trust Funds.

Custodial funds are used to account for assets temporarily held by the City in a fiduciary capacity, and use the economic resources measurement focus. The City’s custodial funds activities include Other Deposits, Fairfield‐ Suisun Sewer District, Solano Animal Control Authority, Green Valley Open Space Maintenance District, Tri‐City and County Regional Parks and Open Space Group, and Community Facilities Districts Debt Service, the latter for servicing the debt of the non‐commitment debt—see Note 20.

The Private Purpose Trust Fund is a Fiduciary Fund type used by the City to report trust arrangements under which principal and income benefit other governmental entities. This trust fund uses the economic resources measurement focus and the accrual basis of accounting. This fund reports the assets, liabilities and activities of the Successor Agency to the former Fairfield Redevelopment Agency (Successor Agency).

C. Use of Restricted/Unrestricted Net Position and Use of Estimates

When an expense is incurred for purposes for which both restricted and unrestricted net position are available, the City’s policy is to use the restricted net position first.

The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates.

D. Cash and Cash Equivalents and Investments

For purposes of the Statement of Cash Flows, cash equivalents are defined as cash and investments which are considered to be liquid assets for purposes of measuring cash flows. Cash and investments of all funds are pooled with the City’s pooled cash and investments, and are considered cash and cash equivalents because the pool is used essentially as a demand deposit account from the standpoint of the funds. Investments are recorded at fair value; changes in fair value are included with investment income in the operating statements.

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City of Fairfield, California

Notes to Basic Financial Statements (continued)
For the Year Ended June 30, 2022

53 E. Restricted Cash and Investments

Certain proceeds of debt issues, along with certain resources, are set aside for their repayment and classified as restricted cash and investments on the balance sheet, because their use is limited by applicable bond covenants and/or other agreements.

During fiscal year 2018‐2019, the City Council approved the creation of a Section 115 Trust (“Trust”) with Public Agency Retirement Services (PARS) specifically for the accumulation of assets to be used towards the funding of pensions. All assets in the Trust are irrevocably dedicated to funding obligations of the City’s pension beneficiaries or costs of administering the Trust. The funds are not considered plan assets of the City’s pension plan with CalPERS, and are therefore considered restricted assets of the City. These restricted cash and investments, as well as the offsetting restricted fund balance, are reported in the City’s General Fund.

F. Unbilled Services Receivable

Utility revenue is recorded when earned. Customers are billed monthly. The estimated value of services provided yet unbilled at year‐end has been included in the accompanying financial statements.

G. Inventory and Prepaid Items

Inventory is valued at cost using the first in, first out method. Inventory in the Proprietary Funds consists of expendable supplies held for future consumption or capitalization. The cost is recorded as an expense as inventory and prepaid items are consumed (consumption method). Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items.

H. Investment in Joint Agencies

In addition to the component units listed above, the City also has an ownership interest in the Solano Water Authority and the California Joint Powers Risk Management Authority. These entities do not meet the criteria for being a component unit of the City, and their financial information is not combined with that of the City. The City’s equity investment in the Solano Water Authority is reported in the Water Utility Enterprise Fund as an investment in joint venture.

I. Capital Assets

The City’s assets are capitalized at historical cost or estimated historical cost (except for right‐to‐use leased assets, the measurement of which is discussed in Note 1N). City policy has set the capitalization threshold for reporting general capital assets at $5,000 and infrastructure at $100,000. Donations or contributions of capital assets are recorded at acquisition cost when received.

Depreciation/amortization is recorded on a straight‐line basis over the estimated useful lives of the capital assets as follows:

Asset Category Useful Life
Buildings 30‐60 years
Improvements 30‐60 years
Equipment 5‐60 years
Infrastructure 25‐60 years
Right‐to‐use leased buildings 3‐10 years
Right‐to‐use leased equipment 5 years

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City of Fairfield, California

Notes to Basic Financial Statements (continued)
For the Year Ended June 30, 2022

54 The City defines infrastructure as the basic physical assets that allow the City to function. The assets include the street system, water purification and distribution system, sewer and water pipes system, park and recreation lands and improvement, storm water conveyance system, and buildings combined with the site amenities such as parking and landscaped areas used by the City in the conduct of its business. Each major infrastructure system can be divided into subsystems. For example, the street system can be subdivided into pavement, curb and gutters, sidewalks, medians, streetlights, traffic control devices (signs, signals and pavement markings), landscaping and land. These subsystems were not delineated in the Basic Financial Statements. The appropriate operating department maintains information regarding the subsystems.

J. Deferred Outflows/Inflows of Resources

Deferred outflows of resources represent a consumption of net assets that applies to a future period and will not be recognized as an outflow of resources (expense/expenditure) until then. The City has four items that qualifies for reporting in this category: 1) deferred charges on refunding reported in the government‐wide statement of net position (deferred charge on refunding results from the difference in the carrying value of refunded debt and its reacquisition price. This amount is deferred and amortized over the shorter of the life of the refunded or refunding debt); 2) deferred outflows/inflows related to pensions. See Note 13. A. 3. for further discussion; 3) deferred outflows/inflows related to Other Post‐Employment Benefits (OPEB). See Note 14. B. 6. for further discussion; and 4) deferred inflows related to leases where the City is the lessor, are reported in the governmental funds balance sheet and statement of net position. The deferred inflows of resources related to leases are recognized as an inflow of resources (revenue) on a straight‐line basis over the term of the lease (See Note 9).

Deferred inflows of resources represent an acquisition of net assets that applies to a future period and will not be recognized as an inflow of resources (revenue) until that time. For the governmental funds, the City has two of these items which qualify for reporting in this category (under the modified accrual basis of accounting). Accordingly, the item, unavailable revenue, is reported only in the governmental funds balance sheet and represents unavailable revenues from interest receivable on notes as well as loan receivables which are due in greater than 90 days. These amounts are deferred and recognized as inflows of resources in the period that the amounts becomes available. At the government‐wide statements, these two items are eliminated and recognized as revenue since “availability” of resources is not a criteria used in the government‐wide statements. In addition, the City reports deferred inflows related to pension/OPEB for certain pension/OPEB related items and leases. See Notes 9, 13. A. 3 and Note 14 for further discussion.

K. 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 Fairfield’s California Public Employees Retirement System (CalPERS) Miscellaneous and Safety Plans and additions to/deductions from the Plan’s fiduciary net position have been determined on the same basis as they are reported by CalPERS. 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.

L. Other Postemployment Benefits (OPEB)

For purposes of measuring the net OPEB liability, deferred outflows of resources related to OPEB, and OPEB expense, information about the City’s plan (OPEB Plan) have been determined on the accrual basis. As of the measurement date of June 30, 2021, there was $2,549,508 accumulated in the CalPERS OPEB trust for the plan. See Note 14 for further discussion regarding OPEB.

M. Long Term Obligations Compensated Absences

The liability for compensated absences includes the unused vacation leave, sick leave, and compensatory time off and personal leave, which are accrued as earned.

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City of Fairfield, California
Notes to Basic Financial Statements (continued)
For the Year Ended June 30, 2022
55 Government‐Wide Financial Statements
For governmental and business‐type activities, compensated absences are recorded as incurred and related expenses and liabilities are reported.
i.Fund Financial Statements
Compensated absences for governmental funds are recorded in an internal service fund. Thus, the liability in the internal service fund is reported as compensated absences expenses are incurred. In proprietary funds, compensated absences are expensed and funded by the various funds in the period in which they are earned.

O.Leases
The City determines if an arrangement is a lease at inception.

When the City is a lessor, lease receivables are recorded by the City as the present value of future lease payments expected to be received from the lessee during the lease term, reduced by any provision for estimated uncollectible amounts. Lease receivables are subsequently reduced over the life of the lease as cash is received in the applicable reporting period. The present value of future lease payments to be received are discounted based on the interest rate the City charges the lessee.

When the City is a lessee, leases are included in capital assets and lease liabilities in the statements of net position.

Lease assets represent the City’s control of the right to use an underlying asset for the lease term, as specified in the contract, in an exchange or exchange‐like transaction. Lease assets are recognized at the commencement date based on the initial measurement of the lease liability, plus any payments made to the lessor at or before the commencement of the lease term and certain direct costs. Lease assets are amortized in a systematic and rational manner over the shorter of the lease term or the useful life of the underlying asset.

Lease liabilities represent the City’s obligation to make lease payments arising from the lease. Lease liabilities are recognized at the commencement date based on the present value of expected lease payments over the lease term, less any lease incentives. Interest expense is recognized ratably over the contract term. The lease term may include options to extend or terminate the lease when it is reasonably certain that the City will exercise that option.

The City recognizes payments for short‐term leases with a lease term of 12 months or less as expenses as incurred, and these leases are not included as lease liabilities or right‐to‐use lease assets on the statements of net position.

For individual contracts where information about the discount rate implicit in the lease are not included, the City has elected to use the incremental borrowing rate to calculate the present value of expected lease payments.

P.Fund Balances
The Governmental Fund Balances consist of Nonspendable, Restricted, Committed, Assigned and Unassigned amounts as described below: (See Note 12 for tabular presentation) Nonspendable: Items that cannot be spent because they are not in spendable form, long term portions of receivables (net of the amount accounted for in restricted funds), inventories, prepaid items, and also items that are legally or contractually required to be maintained intact, such as principal of an endowment from a third party.

Restricted: Restricted fund balances encompass the portion of net fund resources subject to externally enforceable legal restrictions. This includes externally imposed restrictions by creditors (such as through debt covenants), grantors, contributors, laws or regulations of other governments, as well as restrictions imposed by law through constitutional provisions or enabling legislation.

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City of Fairfield, California
Notes to Basic Financial Statements (continued)
For the Year Ended June 30, 2022
56 Committed: Committed fund balances encompass the portion of net fund resources which use is constrained by limitations that the government imposes upon itself by formal action through City Council Resolution. The City Council is also the highest level of decision making for all of its component units. Commitments may be changed or removed only by the same formal action (City Resolution) taken by the City Council to impose the constraint.

Assigned: Assigned fund balances encompass the portion of net fund resources reflecting the government’s intended use of resources. Assignment of resources can be done by the highest level of decision making or by a committee or official designated for that purpose. The Finance Director has been given authority by the City Council to assign funds for the City of Fairfield.

Unassigned: Unassigned fund balances encompass residual amounts that have not been restricted, committed, or assigned. This includes the residual General Fund balance and residual fund deficits, if any, of other governmental funds. The City has adopted a policy to achieve and maintain unassigned fund balance in the General Fund of at least 20% of expenditures.

Q. Land Held for Development
Land held for development includes land parcels used to develop or redevelop blighted properties and are reported at the lower of cost or net realizable value or agreed‐upon price if a disposition agreement has been made with a developer. Individual parcels which have experienced a market decline are written down to estimated current fair value.

R. Unearned Revenue
Unearned revenues are a liability because it refers to revenue that has not yet been earned, but represents products or services that are owed to the customer. As the product or service is delivered over time, it is recognized as revenue on the income statement. Examples of unearned revenue include prepaid rental revenues, as well as permits, business license taxes, grants and prepaid revenues received in advance of the required services being performed.

S. Spending Policy
The City believes that sound financial management principles require that sufficient funds be retained by the City to provide a stable financial base at all times. To retain this stable financial base, the City needs to maintain unassigned fund balance in its General Fund sufficient to fund cash flows of the City and to provide financial reserves for unanticipated expenditures and/or revenue shortfalls of an emergency nature. The City has adopted a policy to achieve and maintain unassigned fund balance in the General Fund of at least 20% of expenditures.

At the governmental fund financial statement level, the City’s policy is that restricted, committed, and assigned fund balances are considered to have been spent first before unassigned fund balances have been spent, when expenditures are incurred for purposes for which amounts in any of those fund balance classifications could be used.

T. Implementation of New GASB Pronouncements
In fiscal year 2021‐2022, the City implemented the following new accounting standards in order to conform to the following Governmental Accounting Standards Board (GASB) Statements:

GASB Statement No. 87 – As of July 1, 2021, the City adopted GASB Statement No. 87, Leases. The implementation of this standard 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 standard 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. As a result of the implementation of this Statement, the City restated beginning net position as of July 1, 2021. The effect of the implementation of this standard on beginning net position is disclosed in Note 21 and the additional disclosures required by this standard Packet Page 199 of 812Attachment 1 Page 77 of 188

City of Fairfield, California
Notes to Basic Financial Statements (continued)
For the Year Ended June 30, 2022
57 is included in Note 9.

GASB Statement No. 89 – In June 2018, the GASB issued Statement No. 89, Accounting for Interest Cost Incurred Before the End of a Construction Period. The objectives of this Statement are (a) to enhance the relevance and comparability of information about capital assets and the cost of borrowing for a reporting period and (b) to simplify accounting for certain interest costs. This Statement does not have a material effect on the financial statements.

GASB Statement No. 91 – In May 2019, the GASB issued Statement No. 91, Conduit Debt Obligations. The objective of this Statement is to provide a single method of reporting conduit debt obligations by issues and eliminate diversity in practice. This Statement does not have a material effect on the financial statements.

GASB Statement No. 92 – In January 2020, the GASB issued Statement No. 92, Omnibus 2020. The objectives of this Statement are to enhance comparability in accounting and financial reporting to improve the consistency of authoritative literature by addressing practices issues that have been identified during implementation and application of certain GASB Statements.

GASB Statement No. 93– In March 2020, the GASB issued Statement No. 93, Replacement of Interbank Offered Rates.

The objective of this Statement is to address the accounting and financial reporting implications that result from the replacement of an IBOR. This Statement does not have a material effect on the financial statements.

GASB Statement No. 97– In June 2020, the GASB issued Statement No. 97, Certain Component Unit Criteria, and Accounting and Financial Reporting For Internal Revenue Code Section 457 Deferred Compensation Plans – An Amendment of GASB Statement No.14 and No.84 and A Supersession of GASB Statement No.32. The objective of this Statement is (1) increase consistency and comparability related to the reporting of fiduciary component units in circumstances in which a potential component unit does not have a governing board and the primary government performs the duties that a governing board typically would perform; (2) mitigate costs associated with the reporting of certain defined contribution pension plans, defined contribution other postemployment benefit (OPEB) plans, and employee benefit plans other than pension plans or OPEB plans (other employee benefit plans) as fiduciary component units in fiduciary fund financial statements; and (3) enhance the relevance, consistency, and comparability of the accounting and financial reporting for Internal Revenue Code (IRC) Section 457 deferred compensation plans (Section 457 plans) that meet the definition of a pension plan and for benefits provided through those plans. This Statement does not have a material effect on the financial statements.

Future Governmental Accounting Standards Board (GASB) Pronouncements GASB Statement No. 94 – In March 2020, the GASB issued Statement No. 94, Public‐Private and Public‐Public Partnerships and Availability Payment Arrangements. The objective of this Statement is to improve financial reporting by addressing issues related to public‐private and public‐public partnership arrangements (PPPs). The Statement is effective for reporting periods beginning after June 15, 2022. The City has not determined the effect of this Statement.

GASB Statement No. 96 – In May 2020, the GASB issued Statement No. 96, Subscription‐based Information Technology Arrangements. The objective of this Statement is to provide guidance on the accounting and financial reporting for subscription‐based information technology arrangements (SBITAs) for government end users (governments). The Statement is effective for reporting periods beginning after June 15, 2022. The City has not determined the effect of this Statement
GASB Statement No. 99 – In April 2022, the GASB issued Statement No. 99, Omnibus 2022, to improve the consistency of authoritative literature by addressing (1) practice issues that have been identified during implementation and application of certain GASB Statements and (2) accounting and financial reporting for financial guarantees. The practice issues addressed by this Statement are as follows:

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City of Fairfield, California
Notes to Basic Financial Statements (continued)
For the Year Ended June 30, 2022
58 The requirements related to extension of the use of LIBOR, accounting for SNAP distributions, disclosures of nonmonetary transactions, pledges of future revenues by pledging governments, clarification of certain provisions in Statement 34, as amended, and terminology updates related to Statement 53 and Statement 63 are effective upon issuance.
The requirements related to leases, PPPs, and SBITAs are effective for fiscal years beginning after June 15, 2022.
The requirements related to financial guarantees and the classification and reporting of derivative instruments within the scope of Statement 53 are effective for fiscal years beginning after June 15, 2023.

The City has not determined the effect of this Statement.

GASB Statement No. 100 – In June 2022, the GASB issued Statement No. 100, Accounting Changes and Error Corrections—an amendment of GASB Statement No. 62, to enhance accounting and financial reporting requirements for accounting changes and error corrections to provide more understandable, reliable, relevant, consistent, and comparable information for making decisions or assessing accountability. The Statement is effective for reporting periods beginning after June 15, 2023. The City has not determined the effect of this Statement.

GASB Statement No. 101 – In June 2022, the GASB issued Statement No. 101, Compensated Absences, which updates the recognition and measurement guidance for compensated absences. The Statement requires that the liabilities for compensated absences be recognized for (1) leave that has been not used and (2) leave that has been used but not yet paid in cash or settled through noncash means. The Statement is effective for reporting periods beginning after December 15, 2023. The City has not determined the effect of this Statement.

T.Budgetary Information
The City adopts annual budgets for all of its funds except for the Custodial Funds, the Permanent Fund, the Improvement Districts Fund, and the Trust Fund. The City operates on a fiscal year basis that begins on July 1 of each year, and ends the following year on June 30. The City Manager’s Office and Finance Department manage the budget process, with support from each of the operating departments. The preparation of the budget takes place between January and June, culminating with the adoption of a two‐year budget by the City Council, with Council adopting any adjustments prior to the beginning of the second fiscal year as part of a mid‐cycle review performed by staff.

Public hearings are conducted on the proposed budgets to review all appropriations and sources of financing. Budgeted expenditures are then adopted through the passage of a resolution. The budget represents the maximum authorized expenditures for the year and cannot legally be exceeded except by subsequent amendments of the budget by the City Council. Any amendments to the total level of net appropriations for a fund or transfers between funds must be approved by the City Council. Capital project appropriations shall remain in effect until the project is completed or until modified in a subsequently adopted budget. See the detailed budget preparation calendar for the City in the Appendix of the adopted budget document for details on this process.

Expenditures are controlled at the fund level for all budgeted departments within the City, the level at which expenditures may not legally exceed appropriations. The budgets are adopted on a basis consistent with generally accepted accounting principles (GAAP).
2)Property Taxes
Property taxes are levied and become a lien on real property at January 1, based on the assessed values determined by the Solano County Assessor (the County). Taxes are due November 1 and February 1 and are delinquent if not paid by December 10 and April 10, respectively. Property tax revenues are recognized when levied.

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City of Fairfield, California

Notes to Basic Financial Statements (continued)
For the Year Ended June 30, 2022

59 Article XIII of the California Constitution (known as “Proposition 13”) limits ad valorem taxes on real property to 1 percent of value plus taxes necessary to pay indebtedness approved by voters prior to July 1, 1978. The Article also established the 1975/76 assessed valuation as the basis and limits annual increases to the cost of living, not to exceed 2 percent, for each year thereafter. Property may also be reassessed to full market value after a sale, transfer of ownership, or completion of new construction. The State is prohibited under the Article from imposing new ad valorem, sales or transactions taxes on real property. Local government may impose special taxes (except on real property) with the approval of 2/3 of the qualified electors. In addition to the City’s property tax levies for voter‐ approved debt, Solano County levies property taxes limited to $1 per $100 of assessed valuation for county, cities, schools and special districts’ operating expenditures. This additional property tax levy is distributed to the different governmental agencies under the State mandated alternate method of apportioning taxes (commonly referred to as the “Teeter Plan”) whereby all local agencies with historical tax delinquency rates less than three percent, including cities, receive from the county 100% of their respective shares of the amount of ad valorem taxes levied, without regard to the actual collection of taxes levied. This method was placed in effect by Solano County in the 1965/66 tax year and remains in effect unless the County Board of Supervisors orders its discontinuance.

3) Interfund Transactions

The City had numerous transactions between funds to finance operations, construct assets, and service debt all within the course of normal business operations. As discussed below, these transactions are classified as transfers in/out, due to/from other funds or advances to/from other funds.

The following tables summarize interfund transfers (as presented in the City’s Fund Financial Statements) for the fiscal year ended June 30, 2022, including a description of major transfer activity:

Low Mod City Non‐Major
General Income Capital Governmental Internal
Fund Housing Projects Funds Service Totals
Transfers Out:
(fund making transfer)
Governmental Funds:

General Fund ‐ 45,000$ 765,000$ 2,634,289$ 16,700,000$ 20,144,289$ Low Mod Income Housing Fund ‐ ‐ 36,652 36,652 Special Programs 16,700,000$ 88,085 180,000 8,278 16,976,363 City Capital Projects Fund ‐ 68,298 68,298 Non‐Major Governmental Funds 1,934,072 7,076,669 59,664 240,000 9,310,405 Total Governmental Funds 18,634,072 133,085 8,021,669 2,807,181 16,940,000 46,536,007 Enterprise Funds:

Water Utility ‐ 216,899 216,899 North Bay Treatment Plant 103,746 103,746
Transportation ‐ 43,993 43,993 Total Enterprise Funds ‐ ‐ 364,638 ‐ 364,638 Internal Service Funds 1,000,000 261,079 216,856 ‐ 1,477,935 Totals 18,634,072$ 1,133,085$ 8,282,748$ 3,388,675$ 16,940,000$ 48,378,580$ Transfers In (fund receiving transfer):

Governmental Funds

A. General Fund

The transfer in from the Special Programs of $16,700,000 was the ARPA funding for the loss of revenue to the general fund during the pandemic. The transfer in from Non‐Major Governmental Funds (Capital Projects, Assessment and Improvement District Fund) for $1,934,072 was related to Community Facilities Districts funding to the general fund for various police, fire, and parks activities.

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City of Fairfield, California

Notes to Basic Financial Statements (continued)
For the Year Ended June 30, 2022

60 B. Low\Mod Housing

The transfer in from the Internal Service Funds of $1,000,000 and the General Fund of $45,000 was the City’s contribution to the Housing Trust Fund which was established during the year.

C. City Capital Projects

The transfer in from the General Fund of $765,000, along with the transfer in from the Special Programs Special Revenue Fund of $180,000, consisted of funding a portion of the FY 21/22 street pavement maintenance projects.

The transfer in from Non‐Major Governmental Funds (State Gas Tax Special Revenue Fund, Development Tax Special Revenue Fund, and Assessment and Improvement Districts Capital Projects Fund) with a combined amount of $7,076,669 was used to fund street maintenance, traffic improvements, pavement rehabilitation and various capital projects. The construction and rehabilitation of these capital projects are needed to meet standards contained in the City’s General Plan. The transfer in from the Internal Service funds of $261,079 was used for various capital projects in the downtown area.

D. Non‐Major Governmental Funds and Golf Courses

The transfer in of $3,388,675 is mainly comprised of the funding to the Non‐Major Governmental Fund (Pension Obligation Debt Service Fund) for the servicing of the Pension Obligation Bonds. A portion of this amount, $214,922, is a transfer in from the General Fund to the City’s portion of the Maintenance Districts throughout the City.

E. Internal Service Funds

The transfer in from the General Fund of $16,700,000 is to reserve this funding for future projects which had been delayed due to the pandemic as funding slowed. The transfer in from the Non‐Major Governmental Funds for $240,000 was from the non‐major fund (Development Tax Special Revenue Fund) to the Internal Service Fund (Public Facilities funds) to fund various City Hall Civic Center improvements.

Due From/To Other Funds consist of the following at June 30, 2022:

Due to Other Funds
(fund receiving loan)
Due From Other Funds:Enterprise
(fund making loan)Transportation
Internal Service Funds 7,346,708$

Due to other funds consist of a short term advance for year‐end cash flow purposes‐‐until the Transportation fund receives its various grant receipts.

Advances From/To Other Funds consist of the following at June 30, 2022:

Advances to Other Funds Non ‐Major Governmental Fund Enterprise (fund making loan)Maintenance Districts Water Utility
Internal Service Fund
Intergovermental Loan 736,000$
Enterprise
North Bay Treatment Plant 2,320,504$
Advances From Other Funds
(fund receiving loan)

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City of Fairfield, California

Notes to Basic Financial Statements (continued)
For the Year Ended June 30, 2022

61 The Internal Service Fund – IGS Loan fund loaned $736,000 to the Non‐Major funds maintenance districts to assist and supplement the districts' budget in three of the respective districts that were encountering cash shortfalls. These loans are interest free and will be repaid over five years beginning in fiscal year 2023‐2024.

The Enterprise Fund—North Bay Treatment Water Plant advanced funds to the Enterprise Fund—Water Utility Funds to finance water plant improvements. This advance will be repaid over a ten year period beginning in FY 2021‐2022.

4) Cash and Investments

The City manages the cash of the City and component units on a pooled basis. Funds are invested in accordance with Section 53601 of the State government code and the City’s established investment policy. All monies not required for immediate expenditure are invested or deposited to earn the maximum yield consistent with safety and liquidity. All investments have the City as registered owner or are kept in the custody of the City or a qualified safekeeping institution. A monthly investment report is submitted to the City Manager and City Council showing a description of the investments, purchase price, purchase date, current fair value for all securities with a maturity of more than 12 months, maturity date, par value, discount or premium if any, cost, yield, safekeeping institution for each deposit or investment, average weighted maturity and effective yield of the portfolio. A portion of the portfolio is managed by third party investment managers. The City has contracted with PARS to manage a Section 115 Trust for the City’s Pension Trust fund.

A. Deposits

The carrying amount of the City’s cash deposits at June 30, 2022 was $9,751,526 and the bank balance was $12,590,720. The entire bank balance was covered by federal depository insurance up to $250,000 or by collateral held by the City’s agent in the City’s name as discussed below.

The California Government Code has provisions for financial institutions that limit custodial credit risk for deposits.

Financial institutions are required to 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. The fair value of the pledged securities in the collateral pool must equal at least 110% 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% of the secured public deposits. The City’s financial institutions also have insurance through the Federal Depository Insurance Corporation (FDIC).

B. Investments

The City’s investment policy restricts investments to the following:

Certificates of Deposit must be FDIC insured or fully collateralized. They must also be purchased from banks or financial institutions located in California.

Negotiable Certificates of Deposit may not exceed 30% of the City’s invested funds.

Bankers’ Acceptances may be invested if issued by domestic or foreign banks provided they are institutions with short‐term debt obligations rated “A‐1” or higher, or the equivalent, by a nationally recognized statistical‐rating organization (NRSRO); and have long‐term debt obligations which are rated “AA” or higher by at least two nationally recognized statistical rating organizations. No more than 30% of the City’s portfolio may be invested in this category.

Treasury Bills and Notes with a maximum maturity of five years.

Federally‐Sponsored Credit Agency Securities with a maximum maturity of five years (75% maximum).

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City of Fairfield, California

Notes to Basic Financial Statements (continued)
For the Year Ended June 30, 2022

62 Local Agency Investment Fund (LAIF) deposits may be made in this fund up to the State of California limit of $75,000,000 for each government entity. The City and its component units have three accounts with LAIF, therefore the maximum deposit that may be made is $225,000,000.

California Asset Management Program (CAMP) is a California Joint Powers Authority ("JPA") established in 1989 to provide California public agencies with professional investment services. The CAMP Pool is a permitted investment for all local agencies under California Government Code Section 53601(p). This program consists of a short‐term money market fund rated AAA and separately managed portfolios of specific authorized securities (as specified in this policy). This pool carries a stable Net Asset Value, whereby the fair value position in the pool is the same as the value of the pool shares.

Savings Accounts, Money Market Accounts and General Checking Accounts may be used to deposit idle cash. No account may be opened without written authorization from the Finance Director.

Commercial Paper must be rated prime quality (P1 by Moody’s or A1 by Standard and Poor’s). Eligible paper is further limited to notes issued by corporations organized and operating within the U.S. and having total assets in excess of $500,000,000 and having an “A” or higher rating in other long term debt (25% maximum).

Corporate Medium‐Term Notes must be rated A by one NRSO (Nationally Recognized Statistical Rating Organization). The maximum maturity of medium‐term notes may not exceed five years. No more than 30% of the City’s portfolio may be invested in this category.

Money Market Mutual Funds must attain the highest ranking or the highest letter and numerical rating provided by not less than two nationally recognized statistical rating organizations. Purchase of securities authorized by this subdivision may not exceed 20% of the portfolio. No more than 10% per money market fund.

Municipal Obligations must be rated at least A by at least two NSRO’s. The maximum maturity is five years and no more than 5% can be invested with one agency.

Supranationals must be rated AAA by at least two NSRO’s; the maximum maturity is five years and no more than 10% of the City’s portfolio can be invested in this category.

Repurchase Agreements, Reverse Repurchase Agreements, Financial Futures and Options, U.S. Zero Coupons and Bonds and Small Business Administration Guaranteed Notes may not be invested in without specific instruction from the Finance Director. The Cash with Fiscal Agents represents primarily restricted bond proceeds (for bond required reserves) and is governed by the provisions of the relevant bond documents and indentures.

Section 115 Pension Trust is governed by the provisions of the City of Fairfield Section 115 Trust Agreement with PARS rather than the general provisions of the California Government Code or the City’s investment policy.

Investments authorized to be held in the trust include Equity, Fixed Income, and Money Market Mutual Funds, with a target percentages of 60%, 35%, and 5% respectively. These funds have been restricted for future pension contributions.

C. Risk Disclosures

Interest Rate Risk is defined as the risk that changes in interest rates demanded by the market will adversely affect the fair value of an investment. As a means of limiting its exposure to fair value losses arising from rising interest rates, State law and the City’s investment policy limits the City’s investment portfolio to maturities not to exceed five years from the time of purchase. Information about the sensitivity of the fair values of the City’s investments to market interest rate fluctuations (including $22,477,213 of debt proceeds held by bond trustees and $5,762,344

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City of Fairfield, California

Notes to Basic Financial Statements (continued)
For the Year Ended June 30, 2022

63 in the Section 115 Pension Trust) is provided by the following table that shows the fair values of investments held by the City grouped by maturity at June 30, 2022:

One year One to Two to Three to Four to % of
Investment Category or less Two Years Three Years Four Years Five Years Total portfolio LAIF 71,566,592$ 71,566,592$ 19%
U.S. Government Agencies 33,562,927 32,880,878$ 9,975,194$ 6,113,010$ 82,532,009 21% U.S. Treasuries 10,085,990 50,960,356 58,443,294 7,749,807 9,761,857 137,001,304 35% Negotiable CDs 7,820,620 7,820,620 2% Medium Term Notes 6,474,005 16,917,667 26,226,894 3,022,795 4,741,467 57,382,828 15% Supranationals 1,032,807 409,260 1,442,067 0% Commercial Paper 992,568 992,568 0% Money Market Mutual Funds 2,770,111 2,770,111 1% CAMP 18,955,333 18,955,333 5%
Section 115 Trust:

Equity Mutual Funds 3,286,744 3,286,744 1% Fixed Income Mutual Funds 2,075,776 2,075,776 1% Money Market Mutual Funds 399,824 399,824 0% Totals 159,023,297$ 101,168,161$ 94,645,382$ 16,885,612$ 14,503,324$ 386,225,776$ 100% Remaining Maturity (in years)

Credit Risk is a risk that a security or a portfolio will lose some or all of its value due to a real or perceived change in the ability of the issuer to repay its debt. Generally, this is measured by the assignment of a rating by a Nationally Recognized Statistical Rating Organization (NRSRO) (see credit quality ratings in section F). The City’s credit quality risk policy is discussed in section B above, within the individual security types.

Custodial Credit Risk is a risk that in the event of the failure of the counterparty (e.g. broker‐dealer), the City will not be able to recover the value of its investment or collateral securities that are held by the counterparty. All of the City’s investments in securities are held in the name of the City and are held via book entry at the location of the City’s third party custodian. Therefore, the City has no custodial credit risk.

Concentration Risk can also arise in the wake of a failure to adequately diversify investments. With the exception of treasuries and agency securities, the City’s investment policy attempts to limit the City’s investments in any one bank or corporation to no more than 5% of the total portfolio (at the time of purchase). Investments in any one issuer (other than U.S. Treasury securities, mutual funds, and external investment pools) that represent 5% or more of the total City’s investment portfolio are shown below:

Amount % of
U.S. Agencies Invested Investments
Federal National Mortgage Association (FNMA) 51,671,688$ 13.58%

D. Investments in Local Agency Investment Funds

As of June 30, 2022, the City has $71,566,592 invested in LAIF. The City valued its investments in LAIF as of June 30, 2022, by multiplying its account balance with LAIF of $72,500,000 by a fair value factor determined by LAIF. The fair value factor was determined by dividing all LAIF participants’ total aggregate fair value by total aggregate amortized cost resulting in a factor of .987125414.

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City of Fairfield, California

Notes to Basic Financial Statements (continued)
For the Year Ended June 30, 2022

64 The LAIF is part of the Pooled Money Investment Account (PMIA) with the State and is a voluntary program which provides an investment alternative for California’s local governments and special districts. The LAIF pool is not registered (nor required to be registered) with the SEC. The PMIA began in 1955 and oversight is provided by the Pooled Money Investment Board (PMIB) and an in‐house investment committee. The Local Investment Advisory Board (LIAB) provides oversight for LAIF. The Board consists of five members, as designated by statute. Additionally, the State Treasurer’s Office is audited by the Bureau of State Audits on an annual basis, as well as a continuing audit process throughout the year.

E. Summary of Cash and Investments

The following is a summary of cash and investments at June 30, 2022:

Fiduciary Funds
Governmental Business‐Type Statement of
Category Activities Activities Subtotals Net Position Totals Cash and Investments 249,701,916$ 80,170,751$ 329,872,667$ 14,689,621$ 344,562,288$ Restricted Cash and Investments 6,156,946 25,442,544 31,599,490 21,402,837 53,002,327 Total Cash and Investments 255,858,862$ 105,613,295$ 361,472,157$ 36,092,458$ 397,564,615$ Government‐Wide Statement of Net Position

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City of Fairfield, California

Notes to Basic Financial Statements (continued)
For the Year Ended June 30, 2022

65 F. Summary

At June 30, 2022, the City had the following deposits and investments, with corresponding credit quality ratings:

Standard & Poor's
Credit Quality Fair
Investment Category Ratings Value
City Treasury:

Deposits 9,751,526$
Investments
Securities of US Gov't Agencies
FHLB AA 12,100,627
FNMA AA 51,545,178
FHLMC AA 12,650,034
FFCB AA 6,109,661
Total Securities of US Gov't Agencies 82,405,500
US Treasury Notes Not Rated 133,450,513
Medium Term Notes AAA 1,268,734
Medium Term Notes AA 16,731,075
Medium Term Notes A 39,383,020
Negotiable CD A‐1 7,820,619
Supranationals AAA 1,442,067
Commercial Paper A‐1 992,568
Money Market Mutual Funds AAA 2,294,626
CAMP AAA 155,421
Local Agency Investment Funds Not rated 71,566,592
Total Investments 357,510,735
Total City Treasury 367,262,261
Fiscal Agents:

Deposits 1,587,313
Investments
Securities of US Gov't Agencies
FNMA AA 126,510
US Treasury Notes Not Rated 3,550,791
Money Market Mutual Funds AAA 475,485
CAMP AAA 18,799,911
Section 115 Trust:

Equity Mutual Funds Not Rated 3,286,744
Fixed Income Mutual Funds BB 580,010
Fixed Income Mutual Funds BBB 1,495,766
Money Market Mutual Fund AAA 399,824
Total Investments 28,715,041
Total Cash and Investments with Fiscal Agents 30,302,354 Total Cash and Investments 397,564,615$

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City of Fairfield, California

Notes to Basic Financial Statements (continued)
For the Year Ended June 30, 2022

66 G. Fair Value Measurements

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.

The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy are described as follows:

Level 1 – Inputs to the valuation methodology are unadjusted quoted prices for identical assets or liabilities in active markets that the City has the ability to access.

Level 2 – Inputs to the valuation methodology include:
 Quoted prices for similar assets or liabilities in active markets;  Quoted prices for identical or similar assets or liabilities in inactive markets;  Inputs other than quoted prices that are observable for the asset or liability;  Inputs that are derived principally from observable market data by correlation or other means.

Level 3 – Inputs to the valuation methodology are unobservable and significant to the fair value measurement.

Unobservable inputs reflect the City’s own assumptions about the inputs market participants would use in pricing the asset or liability (including assumptions about risk). Unobservable inputs are developed based on the best information available in the circumstances and may include the City’s own data.

The asset’s level within the hierarchy is based on the lowest level of input that is significant to the fair value measurement. Valuation techniques used need to maximize the use of observable inputs and minimize the use of unobservable inputs. The determination of what constitutes observable requires judgment by the City’s management. City management considers observable data to be that market data, which is readily available, regularly distributed or updated, reliable, and verifiable, not proprietary, and provided by multiple independent sources that are actively involved in the relevant market. The categorization of an investment within the hierarchy is based upon the relative observability of the inputs to its fair value measurement and does not necessarily correspond to City management’s perceived risk of that investment.

In instances where inputs used to measure fair value fall into different levels in the above fair value hierarchy, fair value measurements in their entirety are categorized based on the lowest level input that is significant to the valuation. The City’s assessment of the significance of particular inputs to these fair value measurements requires judgment and considers factors specific to each asset or liability.

The City’s investments in governmental investment pools, such as LAIF and CAMP (JPA investment Pools) are recorded at fair value and the City’s proportionate share in these types of investments is measured based on uncategorized input‐not defined as a Level 1, Level 2, or Level 3 input; but rather labeled as items measured at fair value not leveled.

The following is a description of the valuation methods and assumptions used by the City to estimate the fair value of its investments. There have been no changes in the methods and assumptions used at June 30, 2022. The methods described may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values. City management believes its valuation methods are appropriate and consistent with other market participants. The use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different fair value measurement at the reporting date.

The City’s treasury pools asset market prices are derived from closing bid prices as of the last business day of the month as supplied by Interactive Data, Bloomberg, or Telerate. Where prices are not available from generally recognized sources, the securities are priced using a yield‐based matrix system to arrive at an estimated fair value.

Prices that fall between data points are interpolated. When available, quoted prices are used to determine fair value.

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City of Fairfield, California

Notes to Basic Financial Statements (continued)
For the Year Ended June 30, 2022

67 When quoted prices in active markets are available, investments are classified within Level 1 of the fair value hierarchy.

For investments classified within Level 2 of the fair value hierarchy, the City’s custodians generally use a multi‐ dimensional relational model. Inputs to their pricing models are based on observable market inputs in active markets. The inputs to the pricing models are typically benchmark yields, reported trades, broker‐dealer quotes, issuer spreads, and benchmark securities, among others. The City does not have any investments that are measured using Level 3 inputs.

The City has the following recurring fair value measurements as of June 30, 2022:

Quoted Prices in Significant
Active Markets Other Significant
for Identical Observable Unobservable
Assets Inputs Inputs
Investments by fair value level Total (Level 1) (Level 2) (Level 3) US Treasuries 137,001,304$        137,001,304$
Government Agency Securities 82,532,009             82,532,009$ Negotiable Certificates of Deposit 7,820,620               7,820,620 Medium Term Notes 57,382,828             57,382,828
Commercial Paper 992,568                   992,568
Supranationals 1,442,067               1,442,067
Money Market Mutual Funds 2,770,111               2,770,111 Section 115 Trust:

Equity Mutual Funds 3,286,744 454,165 2,832,579 Fixed Income Mutual Funds 2,075,776 2,075,776 Money Market Mutual Funds 399,824 399,824 Totals 295,703,851$ 137,455,469$ 158,248,382$ ‐$ Items measured at fair value not leveled
CAMP 18,955,333
LAIF 71,566,592
Total Fair Value of Investments 386,225,776$
Fair Value Measurements on a Recurring Basis Using

5) Receivables

Receivables as of June 30, 2022, net of applicable allowances for uncollectible accounts (where applicable), are as follows:

Governmental Activities
Other
Low Mod City Non‐Major Total
General Income Special Capital Governmental Governmental Category Fund Housing Programs Projects Funds Activities Taxes 10,736,406$    10,736,406$
Interest and other 232,469 15,334$            35,688$                150,194$        149,078$            582,763 Intergovernmental 1,211,436 693,556 228,817 386,949 2,520,758 Notes 30,865,414      18,456,432 49,321,846
Accounts 1,824,651 257,497 1,064 882,401 2,965,613
Leases 14,743,820 14,743,820
Total Receivables 28,748,782$    30,880,748$    986,741$              380,075$        19,874,860$       80,871,206 Add Internal Service Fund Receivables 12,303,953
Total Receivables, Net 93,175,159$
Major Funds

In the governmental activities, approximately $30,468,000 of the outstanding balance of notes receivable in the Low Mod Income Housing Special Revenue Fund and $17,736,000 in Non‐Major Governmental Special Revenue Funds (Home, CDBG and NSP) are not anticipated to be collected within the next year.

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City of Fairfield, California

Notes to Basic Financial Statements (continued)
For the Year Ended June 30, 2022

68 Amounts due to the City from the Successor Agency at June 30, 2022 are $12,454,464, of which $297,083 is reported in Housing Authority Special Revenue Fund, $109,689 is reported in the Non‐Major Governmental Special Revenue Home Fund and $12,047,692 is reported in Intragovernmental Internal Service Fund (see Note 19).

Business‐Type Activities
North Bay Total
Water Treatment Business‐Type
Category Utility Plant Transportation Golf Courses Activities Interest and other 229,241$ 85,570$ 8,375$ 323,186$ Intergovernmental 2,783,840 10,217,511$ 13,001,351 Accounts 6,980,546 22,833 11,673 90,833 7,105,885 Less Allowance for Doubtful Accounts (376,897) (376,897) Subtotal Receivables, Net 6,832,890 2,892,243 10,229,184 99,208 20,053,525 Loans 1,894,613 1,894,613
Total Receivables, Net 6,832,890$ 4,786,856$ 10,229,184$ 99,208$ 21,948,138$ Major Funds

Packet Page 211 of 812Attachment 1 Page 89 of 188

City of Fairfield, California

Notes to Basic Financial Statements (continued)
For the Year Ended June 30, 2022

69 6) Capital Assets

Capital Assets of the City for the year ended June 30, 2022, consisted of the following:

Balance
July 1, 2021 Balance
Asset Description As Restated Additions Retirements Transfers June 30, 2022 Governmental activities:

Non‐depreciable assets:

Land 45,164,734$ 1,350,900$ 46,515,634$ Construction in progress 14,431,513 7,948,819 (70,979)$ (1,855,303)$ 20,454,050 Total non‐depreciable assets 59,596,247 9,299,719 (70,979) (1,855,303) 66,969,684 Assets being depreciated:

Land improvements 188,897,920 35,671 188,933,591 Buildings and improvements 104,451,198 104,451,198 Machinery and equipment 53,692,802 2,808,966 (1,135,741) 1,847,739 57,213,766 Infrastructure 311,497,197 5,119,754 316,616,951 Total assets being depreciated 658,539,117 7,964,391 (1,135,741) 1,847,739 667,215,506 Accumulated depreciation:

Land improvements (29,783,093) (4,458,607) (34,241,700) Buildings and improvements (66,541,528) (3,155,237) (69,696,765) Machinery and equipment (33,815,975) (3,283,454) 1,135,741 7,564 (35,956,124) Infrastructure (221,025,358) (6,442,070) (227,467,428) Total accumulated depreciation (351,165,954) (17,339,368) 1,135,741 7,564 (367,362,017) Total assets being depreciated, net 307,373,163 (9,374,977) ‐ 1,855,303 299,853,489 Right‐to‐use leased assets:

Buildings 458,469 1,248,741 1,707,210 Machinery and Equipment 380,552 380,552 Total right‐to‐use leased assets 458,469 1,629,293 ‐ ‐ 2,087,762 Accumulated amortization:

Buildings (118,890) (118,890)
Machinery and Equipment (19,239) (19,239) Total accumulated amortization ‐ (138,129) ‐ ‐ (138,129) Total right‐to‐use leased assets, net 458,469 1,491,164 ‐ ‐ 1,949,633 Total depreciable assets, net 307,831,632 (7,883,813) ‐ 1,855,303 301,803,122 Total governmental activities 367,427,879 1,415,906 (70,979) ‐ 368,772,806 Business ‐ type activities:

Non‐depreciable assets:

Land 14,937,056              14,937,056
Intangibles 5,126,663                 5,126,663
Construction in progress 7,898,805                 6,941,549              (7,746,406)          7,093,948 Total non‐depreciable assets 27,962,524              6,941,549               ‐                      (7,746,406)          27,157,667 Depreciable assets:

Land improvements 10,674,951 10,674,951
Buildings and improvements 75,292,155 289,727 (284,489) 75,297,393 Machinery and equipment 44,041,427 606,797 (3,522,161) 41,126,063 Infrastructure 207,692,774 1,095,183 7,746,406 216,534,363 Total depreciable assets 337,701,307 1,991,707 (3,806,650) 7,746,406 343,632,770 Accumulated depreciation:

Land improvements (10,473,843) (10,473,843) Buildings and improvements (40,184,357) (1,789,709) 171,146 (41,802,920) Machinery and equipment (37,824,245) (1,653,394) 1,587,606 (37,890,033) Infrastructure (107,422,963) (6,227,426) (113,650,389) Total accumulated depreciation (195,905,408) (9,670,529) 1,758,752 ‐ (203,817,185) Total depreciable assets, net 141,795,899 (7,678,822) (2,047,898) 7,746,406 139,815,585 Total business ‐ type activities 169,758,423 (737,273) (2,047,898) ‐ 166,973,252 Total net capital assets 537,186,302$ 678,633$ (2,118,877)$ ‐$ 535,746,058$ Packet Page 212 of 812Attachment 1 Page 90 of 188

City of Fairfield, California

Notes to Basic Financial Statements (continued)
For the Year Ended June 30, 2022

70 The following table presents summary information on infrastructure assets as of June 30, 2022:

Cost to Build Accumulated Balance
Asset Description June 30, 2022 Depreciation June 30, 2022 Governmental activities:

Bridges and box culverts 22,255,417$ (15,078,532)$ 7,176,885$ Retention and catch basins 8,307,890 (4,402,791) 3,905,099 Manholes 26,466,823 (12,419,535) 14,047,288
Pavement 127,212,074 (103,947,075) 23,264,999
Pump stations ‐ sewer 1,016,805 (583,099) 433,706
Sewer pipes 15,686,278 (8,407,111) 7,279,167
Sidewalks, curbs and gutters 36,959,151 (30,389,023) 6,570,128 Storm drains and open channels 49,959,261 (34,978,537) 14,980,724 Street lights 17,073,869 (11,261,207) 5,812,662
Traffic signals 11,679,383 (6,000,518) 5,678,865
Total governmental activities 316,616,951 (227,467,428) 89,149,523 Business ‐ type activities:

Water utility 216,534,363 (113,650,389) 102,883,974 Total business ‐ type activities 216,534,363 (113,650,389) 102,883,974 Total infrastructure assets 533,151,314$ (341,117,817)$ 192,033,497$

For the year ended June 30, 2022, depreciation and amortization expense on capital assets was charged to the governmental functions of the City as follows:

Department Depreciation/Amortization
Administration 517,915$
Finance 1,192
Police 932,761
Fire 573,054
Public works 11,657,940
Community development 38,568
Housing 40,915
Parks and recreation 891,900
Capital assets held by the government's internal service funds are charged to the various functions based on their usage of the assets 2,823,252
Total Governmental Activities Depreciation/Amortization Expense 17,477,497$

Packet Page 213 of 812Attachment 1 Page 91 of 188

City of Fairfield, California

Notes to Basic Financial Statements (continued)
For the Year Ended June 30, 2022

71 For the year ended June 30, 2022, depreciation expense on capital assets was charged to the business‐type activities of the City as follows:

Fund Depreciation
Water utility 6,514,366$
North bay treatment plant 1,618,675
Transportation 1,214,356
Golf courses 323,132
Total Business ‐type Activities Depreciation Expense 9,670,529$

7) Accounts Payable and Other Current Liabilities

Accounts payable and other current liabilities as of June 30, 2022 are as follows:

Governmental Activities
Other
Low Mod City Non‐Major Total
General Income Special Capital Governmental Governmental Current Liabilities Fund Housing Programs Projects Funds Activities Accounts payable 9,185,142$      1,025$          263,649$              4,356,355$      1,254,565$         15,060,736$ Deposits payable 389,918            322,779                5,884,627        1,000                   6,598,324 Total Accounts Payable & Other
Current Liabilities 9,575,060$      1,025$          586,428$              10,240,982$    1,255,565$         21,659,060 Add: Internal service current liabilities 1,347,007
Total Accounts Payable & Other
Current Liabilities 23,006,067$
Business‐Type Activities
North Bay Total
Water Treatment Business‐Type
Current Liabilities Utility Plant Transportation Golf Courses Activities Accounts payable 2,736,113$      349,876$     2,364,051$          562,400$         6,012,440$ Deposits payable 4,419                     376,365            380,784 Total Accounts Payable & Other
Current Liabilities 2,736,113$      349,876$     2,368,470$          938,765$         6,393,224$ Major Funds
Major Funds

Packet Page 214 of 812Attachment 1 Page 92 of 188

City of Fairfield, California

Notes to Basic Financial Statements (continued)
For the Year Ended June 30, 2022

72 8) Long‐Term Obligations

The following is a summary of long‐term obligation transactions of the City for the year ended June 30, 2022:

Balance
July 1, 2021 Incurred or Satisfied or Balance Due within More than Long Term Obligations As Restated Issued Matured June 30, 2022 One Year One Year Governmental Activities:

General obligation bonds 6,487,348$ 421,890$ 6,065,458$ 421,890$ 5,643,568$ Pension obligation bonds 29,225,000 1,785,000 27,440,000 1,840,000 25,600,000 Long‐term notes payable 376,889 257,734 119,155 119,155 ‐ Compensated absences 18,815,275 3,975,769$ 4,451,880 18,339,164 4,792,312 13,546,852 Claims and judgments payable 14,996,249 3,869,617 4,666,866 14,199,000 2,607,528 11,591,472 Net OPEB liability 457,067 23,576 459,869 20,774 20,774 Net pension liability 169,990,513 20,972,397 89,218,433 101,744,477 101,744,477 Leases 458,469 1,629,293 153,879 1,933,883 350,863 1,583,020 Subtotal 240,806,810 30,470,652 101,415,551 169,861,911 10,131,748 159,730,163 Less: Unamortized bond discount (320,199) 24,631 (295,568) (295,568) Total Governmental Activities 240,486,611$ 30,470,652$ 101,440,182$ 169,566,343$ 10,131,748$ 159,434,595$ Business‐Type Activities:

Utility‐Water revenue bonds (including unamortized discount) 63,993,028$ 3,663,880$ 60,329,148$ 3,548,915$ 56,780,233$ Recreational revenue bonds 1,360,000 440,000 920,000 455,000 465,000 Compensated absences 1,931,457 42,276$ 159,764 1,813,969 54,419 1,759,550 Net pension liability 27,464,592 3,786,898 13,014,441 18,237,049 18,237,049 Subtotal 94,749,077 3,829,174 17,278,085 81,300,166 4,058,334 77,241,832 Plus: Unamortized bond premium 3,366,360 226,986 3,139,374 3,139,374 Total Business‐Type Activities 98,115,437$ 3,829,174$ 17,505,071$ 84,439,540$ 4,058,334$ 80,381,206$

Packet Page 215 of 812Attachment 1 Page 93 of 188

City of Fairfield, California

Notes to Basic Financial Statements (continued)
For the Year Ended June 30, 2022

73 The Government Code of the State of California provides for a legal debt limit of 15% of gross assessed valuation.

By law, the general obligation debt subject to the limitation may be offset by amounts set aside for repaying general obligation bonds. This includes the City's General and Pension Obligation bonds. The City is in compliance with this code.

A. General Obligation Bonds

The general obligation bonds are repaid from property tax revenues, and the City is obligated under the law to levy a property tax sufficient to service the debt.

The City has pledged future zone of benefit property tax revenues to pay the Solano County Water Agency for the North Bay Aqueduct project costs. The City is obligated under the agreement to levy a zone of benefit property tax sufficient to service the contractual payments. The debt does not bear interest. The debt is serviced through the Non‐major General Obligation Bonds Debt Service Fund. Debt service in fiscal year 2022 amounted to $421,890 and the property tax revenue received to service this debt was $390,990 with the remainder coming from accumulated resources on hand. The annual debt service requirements for the General Obligation Bonds are as follows:

Fiscal Year
Ending Principal Interest Total
2023 421,890$                              421,890$
2024 421,890                                 421,890
2025 421,890                                 421,890
2026 421,890                                 421,890
2027 421,890                                 421,890
2028‐2032 2,109,450                             2,109,450 2033‐2036 1,846,558                             1,846,558 Totals 6,065,458$                           ‐$                                       6,065,458$ General Obligation Bonds‐Governmental Activities

B. Pension Obligation Bonds

The City is a member of the California Public Employees’ Retirement System (PERS), a public employees defined benefit retirement program. In fiscal year 2005, the City issued $41,745,000 in order to refinance the City’s unamortized, unfunded actuarial accrued liability with PERS (see Note 13 for more information on PERS pension plan). Series 2004 A was a variable rate debt in the face amount of $8,920,000; series 2004 B was a fixed rate debt and was issued in the face amount of $20,995,000; and series 2005 A2 was variable rate debt and was issued in the face amount of $11,830,000. In FY 2011, the City issued the 2011 series of pension obligation bonds in the amount of $15,870,000 to fully refund and retire both variable rate series bonds: Series 2004 A in the amount of $8,920,000 and series 2005 A2 in the amount of $6,430,000. In FY 2015, the City issued $21,835,000 in refunding bonds to refinance $20,810,000 that was outstanding in the Pension Obligation Series 2004 B series of bonds. The 2015 bonds were issued at a range of interest rates ranging from 1% to 4.75%. These bonds mature in 2034. Under the Indenture of Trust related to the bonds, the remedies for an event of default include compulsion of the City to comply with its obligations, including the payment of debt service, and any other remedies available under law or equity.

On December 4, 2018, to take advantage of lower interest rates, the City issued the 2018 series of pension obligation bonds in the amount of $15,325,000 to fully refund the $13,315,000 that was outstanding in the 2011 Series bonds.

The 2011 bonds had interest rates ranging from 7.08% to 8.5%, while the 2018 series bonds bear interest at rates ranging from 2.85% to 4.36%, resulting in cash flow savings over the life of the bonds of $3.4 million, and an economic gain (difference between the present value of the old and new debt service payments) of $2.5 million. The maturity date of the bonds remained the same at 2034.

Packet Page 216 of 812Attachment 1 Page 94 of 188

City of Fairfield, California

Notes to Basic Financial Statements (continued)
For the Year Ended June 30, 2022

74 The 2015 series bonds have an outstanding balance of $15,170,000 while the 2018 series bonds currently have an amount outstanding of $12,270,000. These Pension Obligation Bonds (POB’s) are backed by the full faith and credit of the City. All pension obligation bonds are federally taxable. Under the Indenture of Trust related to the bonds, the remedies for an event of default include compulsion of the City to comply with its obligations, including the payment of debt service, and any other remedies available under law or equity.

As of June 30, 2022, the amount of accrued interest payable in the Government Wide Statement of Net Position is $94,947. At June 30, 2022, the outstanding balance is $27,440,000. The debt is serviced through the debt service fund and the annual debt service requirements for the POB’s are as follows:

Fiscal Year
Ending Principal Interest Total
2023 1,840,000$ 1,139,369$ 2,979,369$ 2024 1,905,000 1,075,843 2,980,843 2025 1,970,000 1,009,186 2,979,186 2026 2,045,000 936,213 2,981,213 2027 2,120,000 859,820 2,979,820 2028‐2032 11,990,000 2,916,583 14,906,583 2033‐2034 5,570,000 385,091 5,955,091 Totals 27,440,000$ 8,322,105$ 35,762,105$ Pension Obligation Bonds‐Governmental Activities

C. Utility‐Water Revenue Bonds

In November 2007, the City issued $84,466,697 in revenue bonds with interest rates ranging from 4.66% to 5.01% to finance the modernization of the current treatment plant and the construction of water distribution systems. The City has pledged future water customer revenues, net of specified operating expenses to repay the $84.5 million in water revenue bonds. In FY 2017, $43,610,000 of these bonds were refunded (see 2017 Water Refunding Revenue Bonds). This includes total principal and interest remaining to be paid on the bonds is $40,856,697 and $73,703,302, respectively. The remaining outstanding amount of the 2007 bonds are capital appreciation bonds in the originally issued principal amount of $40,856,697. The $73,703,302 in interest represents an amount of accreted interest (to be accreted over the period between 2007 and 2038), and will begin paying down in 2021. Annual principal and interest payments on the bonds are expected to require less than 45% of net revenues beginning in 2021. As of June 30, 2022, the total principal remaining to be paid on the bonds is $34,764,148 and $35,663,575 of interest has been accreted to date. In the current fiscal year, the amount added to the accreted interest payable was $3,516,304. The outstanding certificates of participation were executed and delivered by The Bank of New York Mellon Trust Company, N.A, as trustee, and evidence interests in installment payments made by the City under an Installment Sale Agreement. The City’s obligation to pay installment payments is secured by a pledge of the net revenues of the City’s water enterprise. In the event of a default by the City under the Installment Sale Agreement, the Trustee has the right to exercise any remedy available under law or equity, including declaring all principal components of the unpaid installment payments, together with accrued interest at a default rate, to be immediately due and payable.

In February, 2013, the City issued $4,810,000 in revenue bonds with interest rates ranging from 2.0% to 5.0% to defease and refund on a current basis the Water Enterprise 2003 Refunding Bonds. The issuance premium is reported in long‐term debt‐due on the balance sheet and will be amortized over one year (the remaining life of the bonds). As of June 30, 2022, the balance of the premium is $58,828. The City has pledged future water customer revenues, net of specified operating expenses to repay the $4.8 million in water revenue bonds. Annual principal and interest payments on the bonds are expected to require less than 5% of net revenues in future years. Principal and interest paid in the current year and the net customer revenues were $601,000 and $17,481,795, respectively.

The total principal and interest remaining to be paid on the bonds is $575,000 and $28,750, respectively. As of June 30, 2022 the amount of accrued interest payable is $7,188. Under the Indenture of Trust for the bonds, the remedies for an event of default include any remedy available under law or equity, including declaring the principal amount of any outstanding 2013 Bonds, together with accrued interest, to be immediately due and payable.

Packet Page 217 of 812Attachment 1 Page 95 of 188

City of Fairfield, California

Notes to Basic Financial Statements (continued)
For the Year Ended June 30, 2022

75 In April, 2017, the City issued $40,320,000 in revenue bonds with interest rates ranging from 3.0% to 5.0% to defease and refund on a current basis the term and serial components of the Water Enterprise 2007 Revenue Bonds. The issuance premium is reported in long‐term debt‐due on the balance sheet and will be amortized over the next 20 years (the remaining life of the bonds). As of June 30, 2022, the balance of the premium is $3,047,550. The City has pledged future water customer revenues, net of specified operating expenses to repay the $40.3 million in water revenue bonds. Annual principal and interest payments on the bonds are expected to require less than 8% of net revenues in 2022 and in future years. Net customer revenues in the current year were $17,481,795. Under the Indenture of Trust for the bonds, the remedies for an event of default include any remedy available under law or equity, including declaring the principal amount of any outstanding 2017 Bonds, together with accrued interest, to be immediately due and payable. The total principal and interest remaining to be paid on the bonds is $24,990,000 and $21,193,363, respectively. As of June 30, 2022 the amount of accrued interest payable is $300,114. At June 30, 2022, the water revenue bonds consist of the following:

Bond Issue Bonds Outstanding
2007 Water Revenue Bonds 34,764,148$
2013 Water Refunding Revenue Bonds 575,000
2017 Water Refunding Revenue Bonds 24,990,000
Total Water Revenue Bonds 60,329,148$

The debt service requirements on the utility water revenue bonds are as follows:

Fiscal Year
Ending Principal Interest Total
2023 3,548,915$ 4,195,291$ 7,744,206$ 2024 3,163,944 4,675,312 7,839,256 2025 3,016,599 4,822,707 7,839,306 2026 2,875,410 4,963,796 7,839,206 2027 2,740,248 5,098,708 7,838,956 2028‐2032 11,954,840 27,226,830 39,181,670 2033‐2037 9,632,912 29,549,745 39,182,657 2038‐2042 23,396,280 8,910,575 32,306,855 Total 60,329,148$ 89,442,964$ 149,772,112$ Utility‐Water Revenue Bonds‐Business‐type Activities

D. Recreational Revenue Bonds

In December 2011, the City, on behalf of the Municipal Park Improvement District No. 1 of the City of Fairfield, issued $8,775,000 to refund the outstanding Municipal Park Improvement District No. 1 of the City of Fairfield 1998 Revenue Bonds, Series A.

The Bonds were issued to obtain debt service savings and to restructure the debt service requirements of the City’s golf courses in Rancho Solano and Paradise Valley. The debt bears interest at the rates ranging from 2% to 4%. These bonds will mature in 2023. The issuance premium is reported in long‐term debt‐due on the balance sheet and will be amortized over the next one year (the remaining life of the bonds). As of June 30, 2022, the balance of the premium is $32,996.

The pledged revenue to pay debt service includes all charges received and all other income and revenues derived by the City from the ownership and operation of the golf courses. In the current year, the debt service amounted to $440,000 and the golf course fund had net revenues (after depreciation) of $772,899. To the extent funds are insufficient to pay the operating and maintenance costs and pay the debt service on the bonds, the Council is authorized to levy a tax on taxable property within the Municipal Park Improvement District No. 1 in order to pay Packet Page 218 of 812Attachment 1 Page 96 of 188

City of Fairfield, California

Notes to Basic Financial Statements (continued)
For the Year Ended June 30, 2022

76 such debt service. To date, no levy has been necessary nor made. The 2011 Bonds are not subject to acceleration upon a default with respect to the 2011 Bonds. As of June 30, 2022, the amount of accrued interest payable is $16,681. At June 30, 2022, the outstanding balance is $920,000.

The debt service requirements on the bonds are as follows:

Fiscal Year
Ending Principal Interest Total
2023 455,000$ 25,400$ 480,400$ 2024 465,000 8,719 473,719 Total 920,000$ 34,119$ 954,119$ Recreational Revenue Bonds ‐Business‐type Activities

E. Long‐term Notes Payable—Governmental Activities – Direct Borrowings

At June 30, 2022, long‐term notes payable consist of the following:

Entity Amount
California Energy Resources Conservation 119,155$
Total 119,155$

In March 2011, the City obtained a long term loan from the California Energy Resources Conservation and Development Commission in the amount of $382,624 to upgrade lighting efficiencies at multiple city buildings. The loan has a fixed rate of 3% with principal and interest due semi‐annually through December 2021. The loan has been paid off as of June 30, 2022.

Additionally, in January 2012, the City obtained a second long term loan from the California Energy Resources Conservation and Development Commission in the amount of $2,376,232. This loan was to retrofit the City’s street and pedestrian crossing lights. This loan has a fixed rate of 1% with payments due semi‐annually through December 2022. The outstanding balance on this second loan as of June 30, 2022 is $119,155. The debt is serviced by the Internal Service Funds – Public Facilities Fund.

The debt service requirements on the notes are as follows:

Fiscal Year
Ending Principal Interest Total
2023 119,155$ 597$ 119,752$ Totals 119,155$ 597$ 119,752$ Long Term Notes Payable‐Governmental Activities

Packet Page 219 of 812Attachment 1 Page 97 of 188

City of Fairfield, California

Notes to Basic Financial Statements (continued)
For the Year Ended June 30, 2022

77 F. Compensated Absences

The City’s vested and unpaid compensated absences for the governmental activities are accounted for in the Compensated Absences Internal Service fund. As of June 30, 2022, the outstanding liability for the governmental activities is $18,339,164. As for the City’s business‐type activities, the liabilities for the vested and unpaid compensated absences are accounted by activity and the total as of June 30, 2022 is $1,813,969. The current portion of this liability is $4,792,312 for the governmental activities, and $54,419 for the business‐type activities funds, and has been determined based on recent payout history.

G. Arbitrage

The Tax Reform Act of 1986 instituted certain arbitrage restrictions with respect to the issuance of tax‐exempt bonds after August 31, 1986. Arbitrage regulations deal with the investment of all tax‐exempt bond proceeds at an interest yield greater than the interest yield paid to bondholders. Generally, all interest paid to bondholders can be retroactively rendered taxable if applicable rebates are not reported and paid to the U.S. Treasury at least every five years. The City has evaluated each bond issued subject to the arbitrage requirements and has determined that no arbitrage liability exists at June 30, 2022. The City has complied with all significant bond covenants relating to reserve and sinking fund requirements.

9) Leases

A. Lease receivable

As of year‐end June 30, 2022, the City had entered into various lease agreements as the lessor where it had leased its land, ranging from three years to thirty one years. As of June 30, 2022 the outstanding leases receivable total to $14,743,820. These leases require the various lessees to make periodic payments to the City, and range in interest rates from .7268% to 2.5833%. The offsetting entry to the leases receivable is a Deferred Inflow and the value of the deferred inflow at June 30, 2022 is $14,530,623. The City will be systematically recognizing revenue over the terms of the lease, and in the current fiscal year, the City recognized $498,043 in lease principal and $308,705 in interest.

B. Lease payable

As of year‐end June 30, 2022, the City has entered into various lease agreements as the lessee for the use of various buildings and pieces of equipment, for terms ranging from three to ten years. As of June 30, 2022, the value of the lease liability is outstanding is $1,933,883. The City is required to make monthly fixed payments, and these leases have interest rates ranging from 0.73% to 2.76%. These right‐to‐use leased assets are recognized as Capital Assets (see Note 6), and the value of the right‐to‐use leased assets as of June 30, 2022 is $2,087,762, with accumulated amortization of $138,129.

The future principal and interest lease payments as of June 30, 2022, were as follows:

Fiscal Year
Ending Principal Interest Total
2023 350,863$ 41,028$ 391,891$ 2024 369,564 33,786 403,350 2025 350,155 26,435 376,590 2026 282,693 19,233 301,926 2027 236,762 12,463 249,225 2028‐2032 343,846 24,226 368,072 Totals 1,933,883$ 157,171$ 2,091,054$

Packet Page 220 of 812Attachment 1 Page 98 of 188

City of Fairfield, California

Notes to Basic Financial Statements (continued)
For the Year Ended June 30, 2022

78 10) Risk Management and Insurance

The City is partially self‐insured for workers’ compensation insurance with a $750,000 retention per occurrence and general liability coverage with a $750,000 retention per occurrence and is a member of joint power authorities for the coverage above and beyond the retention levels (see below). The City is completely self‐insured for unemployment insurance, short‐term disability insurance, other post‐employment benefits (OPEB), vision and dental insurance coverage programs. The expenses of the self‐insurance programs are recorded in the Insurance Internal Service Fund. In 2022, an independent actuary performed an analysis of the City’s self‐insured workers’ compensation reserves and general liability reserve (i.e. payable claims); this actuarial analysis is performed every two years for these two liability accounts. For fiscal years 2022 and 2021, estimates for incurred but not reported claims (IBNR) are included in the liability estimates recommended by the actuary. Based on the analysis, which used a rate of 1.5% to discount future investment earnings at a 75% confidence level, the City’s worker’s compensation actuarial liability at June 30, 2022 is $9,304,000 and the general liability actuarial liability is $4,895,000.

The changes in balances of claims liabilities during the past years for the General Liability and Workers’ Compensation fund combined are as follows:

Claims Liability FY 21/22 FY 20/21
Beginning of Fiscal Year 14,996,249$ 14,793,214$ Incurred Claims including IBNR's 3,869,617 1,845,395 Claims Payments (4,666,866) (1,642,360) End of Fiscal Year 14,199,000$ 14,996,249$

For worker’s compensation, the City purchases excess insurance coverage (above and beyond the retention limit of $750,000) from a governmental joint powers authority up to statutory limits per occurrence. This joint power authority is Prism formally known as the California State Association of Counties Excess Insurance Authority, a risk sharing pool of California public agencies, dedicated to controlling losses and providing effective risk management.

In 1979, 29 California counties came together to form this joint powers authority in order to pool their risk and provide a viable and cost effective solution for the counties’ insurance and risk management needs. Since then, the Prism’s membership has expanded to include 95% of the counties in California and nearly 70% of the cities, as well as numerous school districts, special districts, housing authorities, fire districts, and other Joint Powers Authorities.

The Prism is a separate legal entity and is governed by a 65 member Board of Directors. Members are assessed a contribution for each program in which they participate (for the City of Fairfield, this is the Excess Workers’ compensation program). Members may be subject to additional supplemental assessments if it is determined that contributions are insufficient. If it is determined that excess contributions are available, a dividend may be declared.

Separate financial statements may be obtained from the Prism website at https://www.csac‐ eia.org/resources/eia‐ documents.

For general liability, the City is a member of the California Joint Powers Risk Management Authority (CJPRMA), a joint powers authority which provides the City with $40,000,000 liability coverage over and above the self‐insured retention of $750,000. A property insurance policy is purchased by the member entities of CJPRMA with a deductible of $250,000 per loss. The CJPRMA is a legal entity separate and distinct from its member entities, as permitted by the California Government Code. CJPRMA is governed by a 21‐member Board of Directors appointed by the member agencies. Member agencies include approximately 72 Cities, 1 County, 1 Unified School District and 16 special districts. The purpose of the CJPRMA is to spread the adverse effects of losses among the member agencies and to provide excess coverage as a pool, spreading the overall risk among the member entities. Should actual losses among participants are greater than the anticipated losses, the City will be assessed its pro rata share of that deficiency. Conversely, if actual losses are less than anticipated, the City will be refunded its pro rata share of the excess. Separate financial statements may be obtained from the CJPRMA website at Packet Page 221 of 812Attachment 1 Page 99 of 188

City of Fairfield, California

Notes to Basic Financial Statements (continued)
For the Year Ended June 30, 2022

79 https://main.cjprma.org/resources/documents/financials . For both programs, there have been no insurance settlements that have exceeded insurance coverages in each of the last three years.

11) Classification of Net Position

In the Government‐Wide Financial Statements, net position is classified in the following categories:

A. Net Investment in Capital Assets ‐ This category groups all capital assets, net of accumulated depreciation and related debt, into one component of net position, as noted below.

Governmental Business‐Type
Activities Activities Totals
Capital Assets 368,772,806$ 166,973,252$ 535,746,058$ Less Long Term Debt applicable to Capital Assets:

General obligation bonds (6,065,458) (6,065,458) Long term notes payable (119,155) (119,155) Leases (1,933,883) (1,933,883)
Utility water revenue bonds (including unamortized bond premium) (63,435,526) (63,435,526) Recreational revenue bonds (including unamortized bond premium) (952,996) (952,996) Total long term debt applicable to capital assets (8,118,496) (64,388,522) (72,507,018) Add unspent bond proceeds related to capital debt 1,074,375 1,074,375 Add capital‐related deferred outflows of resources 58,469 58,469 Net Investment in Capital Assets 360,654,310$ 103,717,574$ 464,371,884$

In the Governmental Activities, out of the $6,156,946 restricted cash and investments, there are no unspent bond proceeds. In the Business‐Type Activities, out of the $25,442,544 restricted cash and investments, $1,074,375 represents remaining (unspent) bond proceeds for debt service reserves, $471,681 represents cash restricted for debt service, and $23,896,488 represents restricted cash for major maintenance reserves.

B. Restricted Net Position – This category presents external restrictions imposed by section 115 trusts, creditors, grantors, contributors (Outreach Independence) or laws or regulations of other governments (3rd parties) and restrictions imposed by law through constitutional provisions or enabling legislation. The restrictions are categorized in the governmental activities by General Fund, Capital Projects, Debt Service, Community Development Programs, and specific projects, and in the business‐type activities by Debt Service, Major Maintenance, and Minority Interest.

C. Unrestricted Net Position – This category represents the net position of the City, which are not restricted for any project or other purpose.

Packet Page 222 of 812Attachment 1 Page 100 of 188

City of Fairfield, California

Notes to Basic Financial Statements (continued)
For the Year Ended June 30, 2022

80 12) Fund Balances

The City’s Fund Balances for Governmental funds are presented as follows:

Non‐Major Total
General Low Mod Special City Governmental Governmental
Fund Balances Fund Income Housing Programs Capital Projects Funds Funds Nonspendable
Outreach independence 335,375$              335,375$
Total ‐$                        ‐$                        ‐$                        ‐$                            335,375                335,375 Restricted
Pension trust (PARS) 5,764,224             5,764,224
Successor agency admin costs 118,527                118,527 Special revenue:

Housing assistance 515,968                515,968
Streets and parks 5,134,152             5,134,152
Housing and special projects 40,109,064           638,498                34,950,959           75,698,521 Debt service 1,233,228             1,233,228
Capital projects 45,813,429           19,599,332           65,412,761 Outreach Independence 36,077                   36,077
Total 5,882,751             40,109,064           638,498                45,813,429           61,469,716           153,913,458 Committed
Pension stabilization 3,623,465             3,623,465
Capital projects 16,079,866           16,079,866
Total 3,623,465              ‐                          ‐                          ‐                         16,079,866           19,703,331 Assigned
Pension obligation bonds 1,639,136             1,639,136 Capital projects 4,380,345             4,380,345
Total ‐                          ‐                          ‐                         4,380,345             1,639,136             6,019,481 Unassigned
General fund reserve @20% 23,774,721           23,774,721 Carryovers/Encumbrances 5,638,560             5,638,560 Unassigned fund balance 17,886,980           17,886,980 Total Unassigned 47,300,261            ‐                          ‐                          ‐                          ‐                         47,300,261 Total Fund Balances 56,806,477$        40,109,064$        638,498$              50,193,774$        79,524,093$        227,271,906$ Major Funds

Included in the restricted fund balance for the Low Mod Income Housing Special Revenue Fund, there is approximately $30,468,000 of loans receivable that are not anticipated to be collected within the next year. In the non‐major governmental funds (HOME, CDBG, and NSP) fund balance, there is approximately $17,736,000 of loans receivable that are not anticipated to be collected within the next year.

13) Retirement Plans

A. Pension Plan

1. General Information about the Pension Plans

i. Plan Description – The City contributes to the California Public Employees Retirement System (CalPERS), an agent multiple‐employer system that acts as a common investment and administrative agent for participating public entities within the state of California. All qualified permanent and probationary employees are eligible to participate in the City’s separate Safety (police and fire) and Miscellaneous (all other) Plans. Benefit provisions under the Plans are established by State statute and City resolution. CalPERS issues publicly available reports Packet Page 223 of 812Attachment 1 Page 101 of 188

City of Fairfield, California

Notes to Basic Financial Statements (continued)
For the Year Ended June 30, 2022

81 that include a full description of the pension plans regarding benefit provisions, assumptions and membership information that can be found on the CalPERS website at www.calpers.ca.gov .

ii. Benefits Provided ‐ CalPERS provides 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 miscellaneous, classic safety 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 10 years of service. The death benefit is one of the following: the Basic Death benefit, the 1957 Survivor Benefit, or the Optional Settlement 2W Death Benefit. The cost of living adjustments for each plan are applied as specified by the Public Employees’ Retirement Law.

The Plans’ provisions and benefits in effect at June 30, 2022, are summarized as follows:

Plan Classic Plan Tier II PEPRA
Hire Date Prior to 8/26/2012 On or After 8/26/2012 On or After 1/1/2013 Formula 2.7% @ 55 2.5% @ 55 2% @ 62
Benefit vesting schedule 5 years of service 5 years of service 5 years of service Benefit payments monthly for life monthly for life monthly for life Retirement age 50‐55 50‐55 52‐67
Monthly benefits, as a % of annual salary 2.0% to 2.7% 2.0% to 2.5% 1.0% to 2.5% Required employee contribution rates 10.50% 10.50% 6.50% Required employer contribution rates 36.650% 36.650% 39.150% Plan Classic Plan Tier II PEPRA
Hire Date Prior to 8/26/2012 On or After 8/26/2012 On or After 1/1/2013 Formula 3% @ 50 3% @ 55 2.7% @ 57
Benefit vesting schedule 5 years of service 5 years of service 5 years of service Benefit payments monthly for life monthly for life monthly for life Retirement age 50 50‐55 50‐57
Monthly benefits, as a % of annual salary 3.0% 2.4% to 3.0% 2.0% to 2.7% Required employee contribution rates 11.25% 11.25% 10.50% Required employer contribution rates 44.190% 44.190% 46.440% Miscellaneous
Safety

Packet Page 224 of 812Attachment 1 Page 102 of 188

City of Fairfield, California

Notes to Basic Financial Statements (continued)
For the Year Ended June 30, 2022

82 Employees Covered ‐ At June 30, 2022, the following employees were covered by the benefit terms for each Plan:

Employees Covered Miscellaneous Safety Total
Inactive employees or beneficiaries
currently receiving benefits 545 239 784 Inactive employees entitled to but not yet
receiving benefits 365 83 448 Active employees 343 178 521 Totals 1,253 500 1,753

iii. Contributions ‐ Section 20814(c) of the California Public Employees’ Retirement law requires that the employer contribution rates for all public employers are determined on an annual basis by the actuary and shall be effective on the July 1 following notice of a change in rate. Funding contributions for both Plans are determined annually on an actuarial basis as of June 30 by CalPERS. 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 City is required to contribute the difference between the actuarially determined rate and the contribution rates of employees. As of June 31, 2022, the average employee contribution rate for miscellaneous and safety plan are 7.315% and 9.036% of annual pay, respectively, and employer’s contribution rate for miscellaneous and safety plan are 39.15% and 46.44% of annual pay, respectively. For the fiscal year ended June 30, 2022, the employer contributions were $11,163,419 for miscellaneous and $11,585,568 for safety, respectively.

2. Net Pension Liability

The City’s net pension liability for each Plan is measured as the total pension liability, less the pension plan’s fiduciary net position. The net pension liability of each of the Plans are measured as of June 30, 2021, using an annual actuarial valuation as of June 30, 2020 rolled forward to June 30, 2021. The General Fund, in the governmental activities, and the Water, Transportation, and North Bay Regional Water enterprise funds are the primary funds used to liquidate the pension liabilities. A summary of principal assumptions and methods used to determine the net pension liability is shown below.

Actuarial Assumptions ‐ The total pension liabilities in the June 30, 2020 actuarial valuations were determined using the following actuarial assumptions.

Provision Miscellaneous Safety
Valuation Date June 30, 2020 June 30, 2020
Measurement Date June 30, 2021 June 30, 2021
Actuarial Cost Method Entry‐Age Entry‐Age
Normal Cost Method Normal Cost Method
Actuarial Assumptions:

Discount Rate 7.15% 7.15%
Inflation 2.50% 2.50%
Payroll Growth 2.75% 2.75%
Projected Salary Increase (1)3.15% ‐ 11.25% 3.72% ‐ 19.75% Investment Rate of Return (2)7.00% 7.00%
Mortality (3)
(1) Depending on age, service and type of employment
(2) Net of pension plan investment and administrative expenses, including inflation Derived using CalPERS' Membership Data for all Funds
(3) 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 rate 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 from December 2017 can be found on the CalPERS website.

Packet Page 225 of 812Attachment 1 Page 103 of 188

City of Fairfield, California

Notes to Basic Financial Statements (continued)
For the Year Ended June 30, 2022

83 Other actuarial assumptions used in the June 30, 2020 valuation were based from the CalPERS Experience Study and Review of Actuarial report from December 2017 that can be found on the CalPERS website.

i. Discount Rate ‐ The discount rate used to measure the total pension liability was 7.15% for each Plan. 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.

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.

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 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 PERF 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)Target Allocation
Real Return
Years 1‐10 (2)
Real Return
Years 11+ (3)
Global Equity 50.0% 4.8% 6.0%
Fixed Income 28.0% 1.0% 2.6%
Inflation Assets 0.0% 0.8% 1.8%
Private Equity 8.0% 6.3% 7.2%
Real Estate 13.0% 3.8% 4.9%
Liquidity 1.0% 0.0% (0.1%)
Total 100%
(1) In the CalPERS ACFR, Fixed Income is included in Global Debt Securities; Liquidity is included in Short‐term Investments; Inflation Assets are included in Global Equity Securities and Global Debt Securities. (2) An expected inflation of 2.00% used for this period. (3) An expected inflation of 2.92% used for this period.

Packet Page 226 of 812Attachment 1 Page 104 of 188

City of Fairfield, California

Notes to Basic Financial Statements (continued)
For the Year Ended June 30, 2022

84 ii. Changes in the Net Pension Liability ‐ The changes in the net pension liability for each Plan for the measurement date June 30, 2021 are as follows:

Miscellaneous Plan:

Total Pension
Liability
Plan Fiduciary Net
Position
Net Pension
Liability/(Asset)
Balance at June 30, 2020 355,736,617$ 249,983,802$ 105,752,815$ Changes in the year:

Service cost 5,221,877             5,221,877
Interest on the total pension liability 25,231,079           25,231,079 Differences between expected and actual experience 3,855,652             3,855,652 Contribution ‐ employer 9,903,995             (9,903,995) Contribution ‐ employee 2,760,535             (2,760,535) Projected investment income 17,635,380           (17,635,380) Differences between projected and actual earnings on plan investments 38,726,201           (38,726,201)
Benefit payments, including refunds of employee contributions (18,641,949)          (18,641,949)           ‐ Administrative expenses (249,719)               249,719 Net changes 15,666,659           50,134,443           (34,467,784) Balance at June 30, 2021 371,403,276$      300,118,245$      71,285,031$ Safety Plan:

Total Pension
Liability
Plan Fiduciary Net
Position
Net Pension
Liability/(Asset)
Balance at June 30, 2020 340,463,293$ 248,761,003$ 91,702,290$ Changes in the year:

Service cost 7,034,201             7,034,201
Interest on the total pension liability 24,001,451           24,001,451 Differences between expected and actual experience (55,466)                  (55,466) Net plan to plan resource movement ‐
Contribution ‐ employer 14,601,731           (14,601,731) Contribution ‐ employee 2,892,822             (2,892,822) Projected investment income 17,794,444           (17,794,444) Differences between projected and actual earnings on plan investments 38,945,481           (38,945,481)
Benefit payments, including refunds of employee contributions (16,480,599)          (16,480,599)           ‐ Administrative expenses (248,497)               248,497 Net changes 14,499,587           57,505,382           (43,005,795) Balance at June 30, 2021 354,962,880$      306,266,385$      48,696,495$ Totals of both Miscellaneous and Safety Plans 726,366,156$      606,384,630$      119,981,526$ Increase (Decrease)
Increase (Decrease)

Packet Page 227 of 812Attachment 1 Page 105 of 188

City of Fairfield, California

Notes to Basic Financial Statements (continued)
For the Year Ended June 30, 2022

85 iii. Sensitivity of the Net Pension Liability to Changes in the Discount Rate ‐ The following presents the net pension liability of the City for each Plan, calculated using the discount rate for each Plan, as well as what the City’s 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:

Scenario/Effect on Liability
Miscellaneous
Plan
Safety
Plan Total
1% Decrease 6.15% 6.15% 6.15%
Net Pension Liability 118,340,355$            97,518,091$        215,858,446$ Current Discount Rate 7.15% 7.15% 7.15%
Net Pension Liability 71,285,031$              48,696,495$        119,981,526$ 1% Increase 8.15% 8.15% 8.15%
Net Pension Liability 32,243,546$              8,549,603$          40,793,149$

iv. Pension Plan Fiduciary Net Position ‐ Detailed information about each pension plans’ fiduciary net position is available in the separately issued CalPERS financial reports.

3. Pension Expense and Deferred Outflows/Inflows of Resources Related to Pensions

For the year ended June 30, 2022, the City recognized pension expense of $4,436,393 and $6,552,221 for the Miscellaneous and Safety Plan, respectively, for a total of $10,988,614. At June 30, 2022, the City 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
Deferred
Outflows of
Resources
Deferred Inflows
of Resources
Deferred
Outflows of
Resources
Deferred
Inflows of
Resources
Pension contributions subsequent
to measurement date 11,163,419$      11,585,568$        22,748,987$       ‐$ Differences between actual and
expected experience 3,094,010           3,787,941            (43,140)$             6,881,951           (43,140) Changes in assumption (149,797)              ‐                       (149,797) Net differences between
projected/actual earnings on plan
investments (28,078,295)$    (27,998,403)        ‐                       (56,076,698) Totals 14,257,429$      (28,078,295)$    15,373,509$        (28,191,340)$     29,630,938$      (56,269,635)$ Miscellaneous Plan Safety Plan Total

The amount of $11,163,419 and $11,585,568 for the Miscellaneous and Safety Plans, respectively, is reported as deferred outflows of resources related to contributions subsequent to the measurement date and will be recognized as a reduction of the net pension liability in the year ended June 30, 2023.

Packet Page 228 of 812Attachment 1 Page 106 of 188

City of Fairfield, California

Notes to Basic Financial Statements (continued)
For the Year Ended June 30, 2022

86 The amount reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized as pension expense as follows:

Fiscal Miscellaneous Safety
Year Ended Plan Plan Total
2023 (5,124,962)$ (5,009,929)$ (10,134,891)$ 2024 (5,387,787) (5,109,634) (10,497,421) 2025 (6,726,295) (6,488,576) (13,214,871) 2026 (7,745,241) (7,795,260) (15,540,501) Total (24,984,285)$ (24,403,399)$ (49,387,684)$

B. Defined Contribution Plans

The City also provides defined contribution retirement benefits through the City of Fairfield 401(a) plan as well as a 457 plan. Benefit terms, including contribution requirements, are established and may be amended by the City Council. The City and its employees contribute to this plan in accordance with the terms of the employees’ Memorandums of Understanding (MOU’s). In addition, for the 457 plans, employees are permitted to make voluntary contributions to the plan, up to applicable Internal Revenue Code limits. Employees are immediately vested in these contributions and the earnings on those contributions. Employer liabilities are limited to the amount of current contributions. For the year ended June 30, 2022, the City recognized an expense of $2,249,892 for the employer contribution to the 401 and 457 plans.

C. Other Retirement Systems

The Omnibus Budget Reconciliation Act of 1990 (OBRA) mandates that public sector employees who are not members of their employer’s existing retirement system as of January 1, 1992, be covered by either Social Security or an alternative plan. The City contracts with the Public Agency Retirement System (PARS), to maintain a defined contribution plan that covers part‐time, seasonal and temporary employees. Employer liabilities are limited to the amount of current contributions.

Under PARS, employees contribute 6.2% and the City contributes 1.3% of the employee’s salary each pay period.

For the fiscal year ended June 30, 2022, total contributions of $12,046 were made based on a total amount of covered compensation of $926,617.

Certain part‐time employees have elected to be covered under Social Security, which requires these employees and the City to each contribute 6.2% of the employee’s salary. For the fiscal year ended June 30, 2022, total contributions of $21,157 were made based on a total amount of covered compensation $341,233.

14) Other Post‐Employment Benefits (OPEB)

A. General Information about the OPEB Plans

1. Plan Description

The City's Retiree Health Plan is a single‐employer defined benefit healthcare plan. The City provides post‐ retirement health care benefits to certain retired executive management employees and retired City officials as approved by City resolution. Eligibility requirements include: (1) age 53 with 10 or more years of service with the City and; (2) provide a minimum of 4 years of service as an executive management employee; and receipt of Public Employees Retirement System (PERS) benefits. The eligible official/employee must elect to be included in this program immediately upon retirement. The City does not issue a separate, stand‐alone financial report for its OPEB plan. The City’s Retiree Insurance (OPEB) Internal Service Fund is used to liquidate Packet Page 229 of 812Attachment 1 Page 107 of 188

City of Fairfield, California

Notes to Basic Financial Statements (continued)
For the Year Ended June 30, 2022

87 the net OPEB liability. The City has established a trust with CalPERS California Employers’ Retiree Benefit Trust (CERBT) for the purpose of accumulating funding for OPEB obligations. The CERBT is a Section 115 OPEB Trust and is an agent multiple employer plan for those electing to prefund their OPEB obligations. As of the measurement date of June 30, 2021, this trust had accumulated assets of $2,549,508.

2. Employees covered

There are twenty‐four retired individuals covered under this program. The plan is closed and no additional employees will be eligible to participate.

3. Contributions

For the executive management group discussed above, the City pays a subsidy towards the medical and dental premiums for retirees and their dependents. The subsidy is limited to the premium amount that is for the lowest cost medical and dental plans available. During the year ended June 30, 2022, the City made no contributions to the CERBT trust.

B. Net OPEB Liability

1. Actuarial Assumptions

The net OPEB liabilities in the June 30, 2020 actuarial valuation were determined using the following actuarial assumptions:

Valuation Date
Measurement Date
Measurement Period July 1, 2020 to June 30, 2021
Actuarial Assumptions:

Discount Rate
Inflation
Salary Increases N/A
Mortality Rate CalPERS's mortality data
Healthcare Trend Rate
Provisions
June 30, 2020
June 30, 2021

5.85%

2.50%

5.7% in 2021, step down to 4% by 2076

2. Discount Rate

The discount rate of 5.85% was used to calculate the net OPEB liability for the measurement date June 30, 2021. The projection of cash flows used to determine the discount rate assumed that City contributions will be made at rates equal to the actuarially determined contribution rates.

Packet Page 230 of 812Attachment 1 Page 108 of 188

City of Fairfield, California

Notes to Basic Financial Statements (continued)
For the Year Ended June 30, 2022

88 The table below reflects long‐term expected real rate of return by asset class.

Asset Class
Target
Allocation
Real Return
Years 1‐10 (1)
Real Return
Years 11+ (2)
Global Equity 40.0% 4.80% 5.98%
Fixed Income 43.0% 1.10% 2.62%
Global Real Estate 8.0% 3.20% 5.00%
Treasury Inflation Protected Securities 5.0% 0.25% 1.46% Commodities 4.0% 1.50% 2.87%
Total 100%
(1) An expected inflation of 2% used for this period.
(2) An expected inflation of 2.92% used for this period.

3. Changes in the Net OPEB Liability
The changes in the net OPEB liability for the Plan as of the measurement date June 30, 2021 are as follows:

Total OPEB Liability
Plan Fiduciary Net
Position
Net OPEB
Liability/(Asset)
Balance at June 30, 2020 2,662,388$ 2,205,321$ 457,067$ Changes in the year:

Interest on the Total OPEB Liability 148,706                     148,706 Expected Investment Income 125,965                  (125,965) Employer Contribution to the Trust 137,500                  (137,500) Administrative Expenses (835)                       835 Benefit Payments (240,812)                    (240,812)                 ‐ Difference between projected and actual earnings on
Investments 322,369                  (322,369)
Net Changes (92,106)                      344,187                  (436,293) Balance at June 30, 2021 2,570,282$                2,549,508$             20,774$

4. Sensitivity of the Net OPEB Liability to Changes in the Discount Rate

The following presents the net OPEB liability of the City if it were calculated using a discount rate this is one percent lower or one percent higher than the current rate:

Plan
1% Decrease
(4.85%)
Current
Discount Rate
(5.85%)
1% Increase
(6.85%)
Net OPEB Liability/(Asset) 247,963$ 20,774$ (174,785)$

5. Sensitivity of the Net OPEB Liability to Changes in Health Care Cost Trend Rates

The following presents the net OPEB liability of the City if it were calculated using healthcare cost trend rates that are one percent lower or one percent higher than the current rate:

Plan
1% Decrease
(4.7%)
Cost
Trend Rate
(5.7%)
1% Increase
(6.7%)
Net OPEB Liability/(Asset) (170,227)$ 20,774$ 239,019$ Packet Page 231 of 812Attachment 1 Page 109 of 188

City of Fairfield, California

Notes to Basic Financial Statements (continued)
For the Year Ended June 30, 2022

89 6. OPEB Expense and Deferred Outflows and Inflows of Resources Related to OPEB

Gains and losses related to changes in net OPEB liability are recognized in OPEB expense systematically over time.

Amounts are first recognized in OPEB expense for the year the gain and loss occur. The remaining amounts are categorized as deferred outflows of resources related to OPEB and are to be recognized in the future OPEB expense.

The recognition period differs depending on the source of the gain or loss. Net difference between projected and actual earnings on OPEB plan investments are amortized over 5 years and all others are amortized over the expected average remaining service lifetime, which is 0 years at June 30, 2022, since there are no active members. For the year ended June 30, 2022, the City recognized OPEB expense of ($44,112).

At June 30, 2022, the City reported deferred outflows of resources and deferred inflow of resources related to OPEB from the following sources:

Deferred Outflows of
Resources
Deferred Inflow of
Resources
OPEB contributions subsequent to
measurement date 217,666$
Net difference between projected and
actual earnings on investments 266,874$
Total 217,666$ 266,874$

The deferred outflow for $217,666 represents the benefit payment made by the City subsequent to the measurement date and will be recognized as a reduction of net OPEB liability. The deferred inflows of resources related to OPEB will be recognized as OPEB expense as follows:

2023 67,690$
2024 70,801
2025 63,914
2026 64,469
Total 266,874$
Fiscal Year Ended

15) Tax Abatements ‐ Economic Development Incentives

GASB Statement No. 77 defines tax abatements as resulting from an agreement between a government and an individual or entity in which the government promises to forgo tax revenues and the individual or entity promises to subsequently take a specific action that contributes to economic development or otherwise benefits the government or its citizens. According to the GASB 77, the substance of these agreements meet the definition of “tax abatements” as the revenues received were not available for general municipal services purposes, but rather used to effectively reduce the net tax liability of certain taxpayers per the conditions of an agreement. The taxes paid to the City are included in the revenue reported in these financial statements and the payments made to the businesses based upon the taxes paid are also included as expenditures in these financial statements.

The City offers an economic development incentive program to the entities that propose to locate or expand already established businesses within the City. This incentive program is expected to provide a stimulus to the City's economy, increase the tax base and create jobs. Each of the agreements entered into by the City, provides for a rebate of taxes paid to the City according to formulas contained in the agreements. These limited terms agreements Packet Page 232 of 812Attachment 1 Page 110 of 188

City of Fairfield, California

Notes to Basic Financial Statements (continued)
For the Year Ended June 30, 2022

90 provide for a sharing of the taxes (percentage rebates) above certain amounts with a maximum rebate not to exceed the cost of a business’ improvements and/or development impact fees. The City generally expects to receive increased revenue as a result of these agreements. These incentive agreements require approval by City Council.

The term of eligibility under these agreements, approved by City Council, will expire on March 31, 2028.

For the fiscal year ended June 30, 2022, under this program the City had one agreement with abatements of sales tax totaling $1,560,636. Pursuant to the Sales and Use Tax law (chapter 8 – Article 1 – section 7056), in order to protect the confidential information of sales taxes collected and abatements provided to each of the specific agencies, the City has presented the aggregate amount abated during the current fiscal year.

16) Commitments and Contingent Liabilities

Various claims and lawsuits are pending against the City. Although the outcome of these claims and lawsuits is not presently determinable, in the opinion of the City’s management, on advice of legal counsel, it is unlikely that they will have a material adverse effect on the accompanying financial statements.

The City and the Housing Authority have received federal and state grants for specific purposes that are subject to review and audit by the grantor agencies. Such audits could lead to a request for reimbursement for expenditures disallowed under the terms of the grant. The amount, if any, of expenditures that may be disallowed by the granting agencies cannot be determined at this time, although the City expects such amounts, if any, to be immaterial.

A. Other Development Agreements

The City has entered into several agreements with various developers who are developing numerous residential and commercial projects throughout the City. The City agreed to grant the developers’ development fee credits since the developers constructed (or have agreed to construct) certain public improvements beyond what was needed to serve their specific projects. The value of the credits as of June 30, 2022 was $44,780,837. This amount does increase for inflation but does not accrue interest. The accounting for the amounts due are not recorded as liabilities since the payments (the uses of credits) are contingent upon the pulling of future building permits (from building growth that has not yet occurred).

B. Golf Courses Contingent Advances from Other Funds

In the 2014 Financial Statements, the Business‐Type activities golf courses funds showed advances from other funds in the amount of $25,141,275 representing the loans received from the City’s Intra‐governmental loan fund and development tax funds in order to facilitate the construction and the ongoing operations of the golf course fund. In the 2015 Financial Statements, for financial statement purposes, these loans were reclassified to “Transfers In” recognizing that the repayment of these loans is not scheduled to happen in the near and foreseeable future. At the same time, the City has not formally forgiven the loans and the advances are now being disclosed as a contingent liability of the golf course funds. The balance of these loans has not accrued any interest in the current fiscal year and is $27.6 million at June 30, 2022 (of which $15.6 million is principal and $12 million is previously accrued and unpaid interest). Should sufficient resources in the golf courses become available to make repayments in the future, those repayments of this contingent liability will take place; and be recorded as transfers out from the golf courses at that time.

17) Excess of Expenditures over Appropriations and Negative Fund Balances/Net Position

In the Special Programs Major Fund, as well as the Community Development Block Grant, Pension Obligations Bonds and Neighborhood Stabilization Program for non‐major funds, there was a negative variance in expenditures and the variance was covered by the accumulated fund balance.

Packet Page 233 of 812Attachment 1 Page 111 of 188

City of Fairfield, California

Notes to Basic Financial Statements (continued)
For the Year Ended June 30, 2022

91 Net position in the Internal Service Compensated Absence fund reflects a negative net position due to the City recognizing the compensated absences outstanding liability of all of the governmental activities in this fund. It’s anticipated that increased funding levels will take place in the future, which will gradually reduce this deficit over time.

Expenditures over Appropriations and Negative Fund Balances/Net Position 18) North Bay Treatment Plant

The North Bay Treatment Plant was constructed through a joint exercise of powers agreement between the City and the City of Vacaville to operate and maintain facilities for supplying potable water to their respective service areas.

The agreement did not create a separate agency or separate legal entity separate from the parties. A Joint Powers Policy Committee (JPPC) handles the organization and administration of the North Bay Treatment Plant. The JPPC is composed of the Director of Public Works from the City and the Director of Public Works from Vacaville or their designated alternates. The City is reporting this cost sharing arrangement as a joint venture with a majority interest, due to the fact the City has operational control of this facility and function as majority member. As a result, the City reports the entire operations of the North Bay Treatment Plant as a major enterprise fund in the accompanying financial statements, with a corresponding reserve for minority interests.

At June 30, 2022, the net position between Fairfield and Vacaville is classified as follows:

Net Position Fairfield Vacaville Totals
Net Investment in Capital Assets 22,221,267$ 12,435,669$ 34,656,936$ Restricted for major maintenance 17,897,706 10,213,899 28,111,605 Totals 40,118,973$ 22,649,568$ 62,768,541$

19) Successor Agency Trust for Assets of Former Redevelopment Agency

The purpose of this footnote is to explain the impacts of the dissolution of the Fairfield Redevelopment Agency on the City’s financial statements. Under AB 1X 26, passed on June 28, 2011, all redevelopment agencies in the State of California were dissolved and ceased operations as a legal entity as of February 1, 2012.

Amongst numerous requirements, AB 1X 26 requires the following:

(i) subject to the control of a newly established oversight board, assets of the former redevelopment agency must be disposed expeditiously and property tax revenue generated by a former redevelopment agency can only be used to pay enforceable obligations (i.e. debt obligations and other third‐party contractual obligations);

(ii) either the city or another unit of local government may agree to serve as the “Successor Agency” to hold the net position until they are distributed to units of state and local government;

(iii) successor agencies may transfer housing functions of the former redevelopment agency to the appropriate entity; and

(iv) any property tax revenue in excess of enforceable obligations is to be distributed by county auditor controllers to taxing entities, which includes the City, as surplus property tax. In addition, any land sales of property by the Successor agency must be distributed to Solano County, which in turn, is distributed to the various taxing entities. In all years going forward, 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 of the agency have been liquidated.

Packet Page 234 of 812Attachment 1 Page 112 of 188

City of Fairfield, California

Notes to Basic Financial Statements (continued)
For the Year Ended June 30, 2022

92 As a result of the restrictions placed on the assets and liabilities of the former redevelopment agency, all of these assets and liabilities were transferred (and are accounted for on an ongoing basis) into a fiduciary fund (private‐ purpose trust fund) on February 1, 2012. On February 7th, 2012, the City Council elected to become the Successor Agency to the former Fairfield Redevelopment Agency in accordance with AB 1X 26 as part of City resolution number SA2012‐01. On May 14, 2012, the Oversight Board to the Successor Agency of the Fairfield Redevelopment Agency agreed to transfer the housing responsibilities and all rights, powers, duties, and obligations associated with the housing activities of the agency to the Fairfield Housing Authority. The transfer of the majority of these housing assets occurred during fiscal year 2012‐2013 year after the approval by the State of California Department of Finance.

A. Receivables

At June 30, 2022 receivables consisted of the following:

Total
Receivables Receivables
Interest and other 14,958$
Loans 1,510,000
Total Receivables, Net 1,524,958$

Several of the loans receivables are those that had been made to small businesses to assist with business development. As payments are received from these loans, these funds are reflected on the Recognized Obligation Payment Schedules (ROPS) as “Other Income” and are subsequently utilized to decrease the resources requested from Solano County and the State of California. The loans receivable is for $1,510,000 and represents a Loan Receivable from Casa Nova Mobile Home Park. Bond proceeds were issued by the former redevelopment agency and originally used to assist Casa Nova Mobile Home Park to purchase the mobile home park (in 1996 and now have been subsequently refinanced), and now the Successor Agency recognizes a loan receivable from Casa Nova equal to the amount of bonds payable that relate to the purchase of the mobile home park. The receivable is reduced as the debt (bonds payable) is paid down by the mobile home park.

B. Land Held for Resale

The total value of Land Held for Resale at June 30, 2022 is $3,920,066 and consists of properties that were acquired by the former Redevelopment Agency for future development. The properties are carried at the lower of cost or fair value. As a result of the Successor Agency having its Property Management Plan approved by the State on February 27, 2014, the Successor Agency will continue to look to sell land for development. When the Successor Agency sells a piece of land, under state law, the proceeds are immediately remitted to Solano County, who in turn distributes the proceeds of sale to the various taxing entities.

Packet Page 235 of 812Attachment 1 Page 113 of 188

City of Fairfield, California

Notes to Basic Financial Statements (continued)
For the Year Ended June 30, 2022

93 C. Long Term Obligations

The following is a summary of long‐term bonds outstanding of the Successor Agency for the year ended June 30, 2022:

Amount Amount Due
Balance Incurred or Satisfied or Balance Due Within More Than 7/1/2021 Issued Matured 6/30/2022 One Year One Year
Tax Allocation Bonds
2011 TABS, North Texas Project Area 6,110,000$            95,000$                  6,015,000$             105,000$               5,910,000$ 6,110,000                ‐$                          95,000                     6,015,000                105,000                  5,910,000 Tax Allocation Refunding Bonds
Successor Agency 2014 Highway 12 4,881,344               1,755,690              3,125,654                1,525,740              1,599,914 Successor Agency 2014 City Center 1,566,147               532,268                  1,033,879                503,254                  530,625 Successor Agency 2014 Cordelia 2,077,509               707,042                  1,370,467                671,006                  699,461 Successor Agency 2014 Casa Nova 1,685,000               175,000                  1,510,000                185,000                  1,325,000 10,210,000             ‐                             3,170,000              7,040,000                2,885,000              4,155,000 Bond Premiums 1,111,691               333,772                  777,919                    777,919 Total Bonds Payable 17,431,691$          ‐$                          3,598,772$           13,832,919$          2,990,000$           10,842,919$ Long Term Notes Payable
Solano business park H12‐3A 1,963,121$            1,963,121$             1,963,121$ Kaufman & Broad H12‐3A 178,378                    178,378                    178,378 Total Long Term Notes Payable 2,141,499$             ‐$                           ‐$                           2,141,499$              ‐$                           2,141,499$ Total Long Term Debt 19,573,190$          ‐$                          3,598,772$           15,974,418$          2,990,000$           12,984,418$

Fairfield City CouncilJanuary 17, 2023

Fairfield City Council
January 17, 2023