Fairfield City Council
February 21, 2023

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

The City Council hereby authorizes the recapitalization of the REAP Program and the downtown equipment loan fund from the Heart of Fairfield Intergovernmental Loan Fund designated for economic development activities in the amount of $500,000.

PASSED AND ADOPTED this 21st day of February, 2023, by the following vote:

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

NOES: COUNCILMEMBERS:

ABSENT: COUNCILMEMBERS:

ABSTAIN: COUNCILMEMBERS:

MAYOR

ATTEST:

____________________________

CITY CLERK

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Agenda Item No: 13.

AGENDA REPORT
DATE:February 21, 2023
TO:Mayor and City Council
FROM:David Gassaway, City Manager
SUBJECT:Resolution 2023­30 of the City Council of the City of Fairfield Approving an Agreement with the North Texas Street Business Association for the Year 2023 Operation and Administration of the North Texas Street Business Improvement District RECOMMENDED ACTION
Adopt resolution.

STATEMENT OF ISSUE
In the event that there is not a majority protest to the levy of the assessment, the City Council is being asked to adopt a resolution approving an agreement (Agreement) that will allow the total anticipated assessments of $58,000 from the North Texas Street Business Improvement District (BID) to pass through to the North Texas Street Business Association (NTSBA) to implement its work program and activities.

DISCUSSION
On February 7, 2023, the council approved the annual report by the NTSBA and adopted Resolution 2023­14, which declared the City’s intention to levy an assessment on businesses within the BID for the upcoming year and set this meeting (February 21, 2023) as the time and place for a public hearing.

The public hearing is necessary for the council to hear and consider protests to the levy of the assessment. If there is not a majority protest, the council is being asked to approve the Agreement.

Collection of the assessments for calendar year 2023 constitutes the period commencing on January 1, 2023, and ending December 31, 2023. The total amount anticipated from the assessments is $58,000.

The 2023 assessment amount for each business has not changed from what was originally assessed in calendar year 2000. The Agreement is for a one­year term and requires the NTSBA to provide quarterly milestones to City staff regarding the status of projects, programs, activities, and expenses.

FINANCIAL IMPACT
No City funds will be involved. The assessments are collected from BID members and are anticipated Packet Page 455 of 765

Agenda Item No: 13.AGENDA REPORTDATE:February 21, 2023 TO:Mayor and City CouncilFROM:David Gassaway, City ManagerSUBJECT:Resolution 2023­30 of the City Council of the City of Fairfield Approving an Agreementwith the North Texas Street Business Association for the Year 2023 Operation andAdministration of the North Texas Street Business Improvement DistrictRECOMMENDED ACTIONAdopt resolution.STATEMENT OF ISSUEIn the event that there is not a majority protest to the levy of the assessment, the City Council is beingasked to adopt a resolution approving an agreement (Agreement) that will allow the total anticipatedassessments of $58,000 from the North Texas Street Business Improvement District (BID) to passthrough to the North Texas Street Business Association (NTSBA) to implement its work program andactivities.DISCUSSIONOn February 7, 2023, the council approved the annual report by the NTSBA and adopted Resolution2023­14, which declared the City’s intention to levy an assessment on businesses within the BID for theupcoming year and set this meeting (February 21, 2023) as the time and place for a public hearing. The public hearing is necessary for the council to hear and consider protests to the levy of theassessment. If there is not a majority protest, the council is being asked to approve the Agreement. Collection of the assessments for calendar year 2023 constitutes the period commencing on January 1,2023, and ending December 31, 2023. The total amount anticipated from the assessments is $58,000.The 2023 assessment amount for each business has not changed from what was originally assessed incalendar year 2000. The Agreement is for a one­year term and requires the NTSBA to provide quarterlymilestones to City staff regarding the status of projects, programs, activities, and expenses.

FINANCIAL IMPACT
No City funds will be involved. The assessments are collected from BID members and are anticipated to total $58,000.

PUBLIC CONTACT/ADVISORY BODY RECOMMENDATION
On January 11, 2023, the NTSBA Advisory Board approved levying an assessment for calendar year 2023 and execution of the contract between NTSBA and the City.

ALTERNATIVE ACTION
The City Council may choose to modify the proposed terms of the Agreement.

STAFF CONTACT
Jennifer Rice, Real Estate Specialist II
(707) 428­7727
[email protected]
COORDINATED WITH
ATTACHMENTS:

Description
Attachment 1: Proposed Resolution
Attachment 2: Operation and Administration Agreement
REVIEWERS:

Reviewer Action Date
Dalman, Dwayne Approved 2/7/2023 ­ 7:14 PM
Feinstein, David Approved 2/7/2023 ­ 2:39 PM
Beavers, Esther Approved 2/8/2023 ­ 11:31 AM
Beavers, Esther Approved 2/8/2023 ­ 11:31 AM
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CITY OF FAIRFIELD

RESOLUTION NO. 2023-30

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF FAIRFIELD APPROVING AN AGREEMENT WITH THE NORTH TEXAS STREET BUSINESS ASSOCIATION FOR THE YEAR 2023 OPERATION

AND ADMINISTRATION OF THE NORTH TEXAS STREET BUSINESS IMPROVEMENT DISTRICT

WHEREAS, the City Council adopted Ordinance No. 99-21 on September 21, 1999, establishing a parking and business improvement area known as the North Texas Street Business Improvement District (BID), pursuant to Section 36500, et seq. of the California Streets and Highway Code (Act); and

WHEREAS, pursuant to the aforementioned ordinance and the Act, a system of charges has been assessed upon various classes of businesses located within the BID; and

WHEREAS, on February 7, 2023, the council adopted Resolution 2023-14, a resolution of intention, declaring its intention to levy and collect an assessment for calendar year 2023 against the BID; and

WHEREAS, on February 7, 2023, the council conducted a duly noticed public hearing to hear and consider protests to the levy of the assessment; and

WHEREAS, the City of Fairfield desires to use charges levied and collected by the City to contract for the administration of programs and activities in connection with the BID for calendar year 2023; and

WHEREAS, the North Texas Street Business Association proposes to administer programs and activities in connection with the BID for calendar year 2023.

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

SECTION 1. The council hereby approves and authorizes the execution of the Agreement by and between the City and North Texas Street Business Association for Calendar Year 2023 Operation and Administration of the North Texas Street Business Improvement District (the Agreement) substantially in the form and content presented and attached hereto, with minor technical changes as approved by the city attorney.

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RES. NO. 2023-30

Community Development Department
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SECTION 2. The city manager is hereby authorized to do all things necessary and proper to implement the Agreement.

PASSED AND ADOPTED this 21st day of February, 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: 14.

AGENDA REPORT
DATE:February 21, 2023
TO:Mayor and City Council
FROM:David Gassaway, City Manager
SUBJECT:Public Hearing; and Resolutions 2023­31 Through 2023­35 and Ordinance 2023­05 for Proceedings (Including a Landowner Election) to Establish a Community Facilities District, One or More Improvement Areas and a Future Annexation Area for the One Lake Project
RECOMMENDED ACTION
Hold public hearing, conduct landowner election, adopt resolutions and introduce ordinance.

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”), petitioned the City to form a new community facilities district for Planning Area 5 of the Project to finance the Facilities and the Services.

On January 17, 2023, the City Council commenced the process of forming (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 council is now being asked to (i) hold public hearings on establishing CFD No. 2023­1, Packet Page 472 of 765

Agenda Item No: 14.AGENDA REPORTDATE:February 21, 2023 TO:Mayor and City CouncilFROM:David Gassaway, City ManagerSUBJECT:Public Hearing; and Resolutions 2023­31 Through 2023­35 and Ordinance 2023­05for Proceedings (Including a Landowner Election) to Establish a Community FacilitiesDistrict, One or More Improvement Areas and a Future Annexation Area for the One LakeProjectRECOMMENDED ACTIONHold public hearing, conduct landowner election, adopt resolutions and introduce ordinance.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”), petitioned the City to form anew community facilities district for Planning Area 5 of the Project to finance the Facilities and theServices.On January 17, 2023, the City Council commenced the process of forming (i) City of FairfieldCommunity 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 for CFD No. 2023­1 (the “Future Annexation Area”).

The council is now being asked to (i) hold public hearings on establishing CFD No. 2023­1, Improvement Area No. 1 of CFD No. 2023­1 and the Future Annexation Area and incurring indebtedness for CFD No. 2023­1, (ii) adopt certain resolutions to form CFD No. 2023­1, Improvement Area No. 1 of CFD No. 2023­1 and the Future Annexation Area and declare the necessity to incur indebtedness, (iii) hold a landowner election within Improvement Area No. 1 of CFD No. 2023­1 and (iv) introduce an ordinance ordering the levy of special taxes within CFD No. 2023­1.

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 subsequently amended on August 21, 2012.

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 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 the Project 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 Packet Page 473 of 765

Agenda Item No: 14.AGENDA REPORTDATE:February 21, 2023 TO:Mayor and City CouncilFROM:David Gassaway, City ManagerSUBJECT:Public Hearing; and Resolutions 2023­31 Through 2023­35 and Ordinance 2023­05for Proceedings (Including a Landowner Election) to Establish a Community FacilitiesDistrict, One or More Improvement Areas and a Future Annexation Area for the One LakeProjectRECOMMENDED ACTIONHold public hearing, conduct landowner election, adopt resolutions and introduce ordinance.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”), petitioned the City to form anew community facilities district for Planning Area 5 of the Project to finance the Facilities and theServices.On January 17, 2023, the City Council commenced the process of forming (i) City of FairfieldCommunity 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 council is now being asked to (i) hold public hearings on establishing CFD No. 2023­1,Improvement Area No. 1 of CFD No. 2023­1 and the Future Annexation Area and incurringindebtedness for CFD No. 2023­1, (ii) adopt certain resolutions to form CFD No. 2023­1, ImprovementArea No. 1 of CFD No. 2023­1 and the Future Annexation Area and declare the necessity to incurindebtedness, (iii) hold a landowner election within Improvement Area No. 1 of CFD No. 2023­1 and (iv)introduce an ordinance ordering the levy of special taxes within CFD No. 2023­1.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). TheProperty is proposed for development as a 358.5­acre master planned residential community known asOne Lake with 2,226 single­family detached and multi­family homes and 70,000 square feet ofcommercial development. The Developer estimates that the development of the Project will requiremore than $219.4 million of offsite and onsite infrastructure improvements (not including the cost of thefire station), and that approximately $97.4 million of those improvements are eligible for financing underthe 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 tothe Project Area (as defined in the Development Agreement) and may not be a publicimprovement funded by a development impact fee, including the Northeast Fee. The fire station tobe 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 aninfrastructure CFD may not cause the combined total of the 1% ad valorem property tax, anyexisting 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 estimatedassessed valuation of the residential properties proposed to be included in the infrastructureCFD, but the authorized percentage was increased to 1.65% for Planning Area 5 pursuant to theFourth Amendment to Development Agreement. The Development Agreement requires theestimated assessed valuation of residential property to be determined by the City at the time offormation of the infrastructure CFD based on the estimated sales price of each fully developedresidential 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.

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 (CFD No. 2023­ 1) 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.

Prior Proceedings for CFD No. 2023­1. At the City Council meeting on January 17, 2023, the Council approved resolutions of intention to initiate the process of forming and incurring indebtedness for CFD No. 2023­1.

Boundary Map. Since January 17, 2023, City staff and its consultants caused the boundary map of CFD No. 2023­1, Improvement Area No. 1 of CFD No. 2023­1 and the Future Annexation Area to be recorded in the Solano County Recorder’s Office.

Acquisition Agreement . City staff and its consultants have also prepared a form of Acquisition Agreement (the “Acquisition Agreement”; see Attachment 1) between the City and Developer, pursuant to which the City may accept the public infrastructure to be financed by CFD No. 2023­1.

Public Hearing. The City caused publication of two notices of public hearing in the Daily Republic on February 1, 2023, regarding the public hearings to occur tonight. One notice invites interested parties to speak for or against the establishment of CFD No. 2023­1, Improvement Area No. 1 of CFD No. 2023­ 1 and the Future Annexation Area, the extent of CFD No. 2023­1, Improvement Area No. 1 of CFD No. 2023­1 and the Future Annexation Area or the furnishing of the specified facilities and services. The other notice invites interested parties to speak for or against the necessity of incurring bonds in the following maximum amounts and other debt to finance the costs of the Facilities:

Improvement Area No. 1 of CFD No. 2023­1 Bond Limit: $90,000,000.

Remainder of CFD No. 2023­1 Bond Limit: $15,000,000.

Prior to the next legislative step in the formation process, it is necessary for the City Council to hold the public hearings described above.

Protests against the establishment of CFD No. 2023­1, Improvement Area No. 1 of CFD No. 2023­1 and the Future Annexation Area, the special taxes to be levied in Improvement Area No. 1 of CFD No. 2023­1, the proposed facilities and services to be financed by CFD No. 2023­1 and the proposed indebtedness for CFD No. 2023­1 may be made orally or in writing by any interested persons or taxpayers. However, the council will be obligated to halt the process of forming CFD No. 2023­1 only as a result of majority protests from registered voters or landowners in the proposed CFD. The council will be obligated to halt the process of forming the Future Annexation Area only as a result of majority protests from registered voters or landowners in the proposed CFD or the Future Annexation Area.

Staff has confirmed that there are no registered voters in the boundaries of CFD No. 2023­1 or the Future Annexation Area, and the Developer is the only landowner in CFD No. 2023­1.

Packet Page 474 of 765

Agenda Item No: 14.AGENDA REPORTDATE:February 21, 2023 TO:Mayor and City CouncilFROM:David Gassaway, City ManagerSUBJECT:Public Hearing; and Resolutions 2023­31 Through 2023­35 and Ordinance 2023­05for Proceedings (Including a Landowner Election) to Establish a Community FacilitiesDistrict, One or More Improvement Areas and a Future Annexation Area for the One LakeProjectRECOMMENDED ACTIONHold public hearing, conduct landowner election, adopt resolutions and introduce ordinance.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”), petitioned the City to form anew community facilities district for Planning Area 5 of the Project to finance the Facilities and theServices.On January 17, 2023, the City Council commenced the process of forming (i) City of FairfieldCommunity 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 council is now being asked to (i) hold public hearings on establishing CFD No. 2023­1,Improvement Area No. 1 of CFD No. 2023­1 and the Future Annexation Area and incurringindebtedness for CFD No. 2023­1, (ii) adopt certain resolutions to form CFD No. 2023­1, ImprovementArea No. 1 of CFD No. 2023­1 and the Future Annexation Area and declare the necessity to incurindebtedness, (iii) hold a landowner election within Improvement Area No. 1 of CFD No. 2023­1 and (iv)introduce an ordinance ordering the levy of special taxes within CFD No. 2023­1.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). TheProperty is proposed for development as a 358.5­acre master planned residential community known asOne Lake with 2,226 single­family detached and multi­family homes and 70,000 square feet ofcommercial development. The Developer estimates that the development of the Project will requiremore than $219.4 million of offsite and onsite infrastructure improvements (not including the cost of thefire station), and that approximately $97.4 million of those improvements are eligible for financing underthe 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 tothe Project Area (as defined in the Development Agreement) and may not be a publicimprovement funded by a development impact fee, including the Northeast Fee. The fire station tobe 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 aninfrastructure CFD may not cause the combined total of the 1% ad valorem property tax, anyexisting 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 estimatedassessed valuation of the residential properties proposed to be included in the infrastructureCFD, but the authorized percentage was increased to 1.65% for Planning Area 5 pursuant to theFourth Amendment to Development Agreement. The Development Agreement requires theestimated assessed valuation of residential property to be determined by the City at the time offormation of the infrastructure CFD based on the estimated sales price of each fully developedresidential unit. The 1.65% target excludes HOA dues, assessments related to any lighting andlandscaping maintenance costs required by the Development Agreement (including those fundedby the Train Station Specific Plan CFD) and any utility charges, utility user tax, parcel tax, salestax 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 (CFD No. 2023­1) would finance substantially the same Facilities and the same Services as CFD 2019­1, although thespecial tax rates would reflect the 1.65% all­in tax rate.Prior Proceedings for CFD No. 2023­1. At the City Council meeting on January 17, 2023, the Councilapproved resolutions of intention to initiate the process of forming and incurring indebtedness for CFDNo. 2023­1.Boundary Map. Since January 17, 2023, City staff and its consultants caused the boundary map of CFD No.2023­1, Improvement Area No. 1 of CFD No. 2023­1 and the Future Annexation Area to be recorded in theSolano County Recorder’s Office.Acquisition Agreement . City staff and its consultants have also prepared a form of AcquisitionAgreement (the “Acquisition Agreement”; see Attachment 1) between the City and Developer, pursuantto which the City may accept the public infrastructure to be financed by CFD No. 2023­1. Public Hearing. The City caused publication of two notices of public hearing in the Daily Republic onFebruary 1, 2023, regarding the public hearings to occur tonight. One notice invites interested parties tospeak for or against the establishment of CFD No. 2023­1, Improvement Area No. 1 of CFD No. 2023­1 and the Future Annexation Area, the extent of CFD No. 2023­1, Improvement Area No. 1 of CFD No.2023­1 and the Future Annexation Area or the furnishing of the specified facilities and services. Theother notice invites interested parties to speak for or against the necessity of incurring bonds in thefollowing maximum amounts and other debt to finance the costs of the Facilities:Improvement Area No. 1 of CFD No. 2023­1 Bond Limit: $90,000,000.Remainder of CFD No. 2023­1 Bond Limit: $15,000,000.Prior to the next legislative step in the formation process, it is necessary for the City Council to hold thepublic hearings described above.Protests against the establishment of CFD No. 2023­1, Improvement Area No. 1 of CFD No. 2023­1and the Future Annexation Area, the special taxes to be levied in Improvement Area No. 1 of CFD No.2023­1, the proposed facilities and services to be financed by CFD No. 2023­1 and the proposedindebtedness for CFD No. 2023­1 may be made orally or in writing by any interested persons ortaxpayers. However, the council will be obligated to halt the process of forming CFD No. 2023­1 only asa result of majority protests from registered voters or landowners in the proposed CFD. The council willbe obligated to halt the process of forming the Future Annexation Area only as a result of majorityprotests from registered voters or landowners in the proposed CFD or the Future Annexation Area.

Staff has confirmed that there are no registered voters in the boundaries of CFD No. 2023­1 or the Future Annexation Area, and the Developer is the only landowner in CFD No. 2023­1.

The council may continue the formation hearing, but the hearing generally must be completed within 30 days. Hearings about the formation of CFD No. 2023­1 and Improvement Area No. 1 of CFD No. 2023­ 1 may be further continued for no more than six months if the City Council finds that the complexity of the proposed formation or the need for public participation requires additional time.

Subsequent Legislative Steps. After completion of the public hearings, and assuming there is no protest that prevents the process from proceeding, the next legislative step would be for the City Council to adopt the following resolutions:
• Resolution of the City Council Forming a Community Facilities District, an Improvement Area and a Future Annexation Area, Providing for Future Improvement Areas, and Determining Other Related Matters. Adoption of this resolution forms CFD No. 2023­1, Improvement Area No. 1 of CFD No. 2023­1 and the Future Annexation Area, subject to a favorable vote of the qualified landowner elector. This resolution also approves the form of Acquisition Agreement and authorizes an authorized representative to execute the Acquisition Agreement for and on behalf of the City, and to take all actions necessary to implement the Acquisition Agreement. • Resolution of the City Council Determining the Necessity to Incur Bonded Indebtedness and Other Debt.This resolution establishes the maximum amount of bonded indebtedness for Improvement Area No. 1 of CFD No. 2023­1, subject to a favorable vote of the qualified landowner elector in Improvement Area No. 1 of CFD No. 2023­1, and establishes the necessity to incur other debt for Improvement Area No. 1 of CFD No. 2023­1. This resolution also establishes the maximum bonded indebtedness, and the necessity to incur other debt, for the remainder of CFD No. 2023­1.
• Resolution of the City Council Calling Special Landowner Election in Improvement Area No.1 of CFD No. 2023­1. This resolution calls for an election to be held within Improvement Area No. 1 of CFD No. 2023­1 to consider the issues of the levy of the special tax, the incurring of bonded indebtedness and other debt and the establishment of the appropriations limit for CFD No. 2023­

1. Because there are no registered voters in Improvement Area No. 1 of CFD No. 2023­1, the Developer is the qualified elector for Improvement Area No. 1 of CFD No. 2023­1.

Election. After adoption of the three resolutions listed above, the mayor will ask the city clerk to open any ballot she has received from the qualified landowner elector and report on the outcome of the election for Improvement Area No. 1 of CFD No. 2023­1. The city clerk previously caused mail ballot(s) to be sent to the Developer with instructions to return the ballot(s) to her by the time of the public hearings.

Final Legislative Steps. After completion of the election, and assuming a favorable vote by the Developer, the next legislative step would be for the council to adopt the following resolutions and introduce an ordinance levying special taxes in CFD No. 2023­1:
• Resolution of the City Council Declaring Results of Special Election and Directing Recording of Notice of Special Tax Lien. The council should consider this resolution immediately after the city clerk has opened the ballots and counted votes. The resolution declares the results of the election within Improvement Area No. 1 of CFD No. 2023­1. • Resolution of the City Council Authorizing the Issuance of Bonds for Improvement Area No. 1 of CFD No. 2023­1. This resolution authorizes the issuance of bonds for Improvement Area No. 1 of CFD No. 2023­1, subject to staff returning to the council for approval of the documentation for a specific financing.
• Introduction of Ordinance of the City Council Levying Special Taxes within CFD No. 2023­1.

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Agenda Item No: 14.AGENDA REPORTDATE:February 21, 2023 TO:Mayor and City CouncilFROM:David Gassaway, City ManagerSUBJECT:Public Hearing; and Resolutions 2023­31 Through 2023­35 and Ordinance 2023­05for Proceedings (Including a Landowner Election) to Establish a Community FacilitiesDistrict, One or More Improvement Areas and a Future Annexation Area for the One LakeProjectRECOMMENDED ACTIONHold public hearing, conduct landowner election, adopt resolutions and introduce ordinance.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”), petitioned the City to form anew community facilities district for Planning Area 5 of the Project to finance the Facilities and theServices.On January 17, 2023, the City Council commenced the process of forming (i) City of FairfieldCommunity 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 council is now being asked to (i) hold public hearings on establishing CFD No. 2023­1,Improvement Area No. 1 of CFD No. 2023­1 and the Future Annexation Area and incurringindebtedness for CFD No. 2023­1, (ii) adopt certain resolutions to form CFD No. 2023­1, ImprovementArea No. 1 of CFD No. 2023­1 and the Future Annexation Area and declare the necessity to incurindebtedness, (iii) hold a landowner election within Improvement Area No. 1 of CFD No. 2023­1 and (iv)introduce an ordinance ordering the levy of special taxes within CFD No. 2023­1.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). TheProperty is proposed for development as a 358.5­acre master planned residential community known asOne Lake with 2,226 single­family detached and multi­family homes and 70,000 square feet ofcommercial development. The Developer estimates that the development of the Project will requiremore than $219.4 million of offsite and onsite infrastructure improvements (not including the cost of thefire station), and that approximately $97.4 million of those improvements are eligible for financing underthe 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 tothe Project Area (as defined in the Development Agreement) and may not be a publicimprovement funded by a development impact fee, including the Northeast Fee. The fire station tobe 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 aninfrastructure CFD may not cause the combined total of the 1% ad valorem property tax, anyexisting 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 estimatedassessed valuation of the residential properties proposed to be included in the infrastructureCFD, but the authorized percentage was increased to 1.65% for Planning Area 5 pursuant to theFourth Amendment to Development Agreement. The Development Agreement requires theestimated assessed valuation of residential property to be determined by the City at the time offormation of the infrastructure CFD based on the estimated sales price of each fully developedresidential unit. The 1.65% target excludes HOA dues, assessments related to any lighting andlandscaping maintenance costs required by the Development Agreement (including those fundedby the Train Station Specific Plan CFD) and any utility charges, utility user tax, parcel tax, salestax 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 (CFD No. 2023­1) would finance substantially the same Facilities and the same Services as CFD 2019­1, although thespecial tax rates would reflect the 1.65% all­in tax rate.Prior Proceedings for CFD No. 2023­1. At the City Council meeting on January 17, 2023, the Councilapproved resolutions of intention to initiate the process of forming and incurring indebtedness for CFDNo. 2023­1.Boundary Map. Since January 17, 2023, City staff and its consultants caused the boundary map of CFD No.2023­1, Improvement Area No. 1 of CFD No. 2023­1 and the Future Annexation Area to be recorded in theSolano County Recorder’s Office.Acquisition Agreement . City staff and its consultants have also prepared a form of AcquisitionAgreement (the “Acquisition Agreement”; see Attachment 1) between the City and Developer, pursuantto which the City may accept the public infrastructure to be financed by CFD No. 2023­1. Public Hearing. The City caused publication of two notices of public hearing in the Daily Republic onFebruary 1, 2023, regarding the public hearings to occur tonight. One notice invites interested parties tospeak for or against the establishment of CFD No. 2023­1, Improvement Area No. 1 of CFD No. 2023­1 and the Future Annexation Area, the extent of CFD No. 2023­1, Improvement Area No. 1 of CFD No.2023­1 and the Future Annexation Area or the furnishing of the specified facilities and services. Theother notice invites interested parties to speak for or against the necessity of incurring bonds in thefollowing maximum amounts and other debt to finance the costs of the Facilities:Improvement Area No. 1 of CFD No. 2023­1 Bond Limit: $90,000,000.Remainder of CFD No. 2023­1 Bond Limit: $15,000,000.Prior to the next legislative step in the formation process, it is necessary for the City Council to hold thepublic hearings described above.Protests against the establishment of CFD No. 2023­1, Improvement Area No. 1 of CFD No. 2023­1and the Future Annexation Area, the special taxes to be levied in Improvement Area No. 1 of CFD No.2023­1, the proposed facilities and services to be financed by CFD No. 2023­1 and the proposedindebtedness for CFD No. 2023­1 may be made orally or in writing by any interested persons ortaxpayers. However, the council will be obligated to halt the process of forming CFD No. 2023­1 only asa result of majority protests from registered voters or landowners in the proposed CFD. The council willbe obligated to halt the process of forming the Future Annexation Area only as a result of majorityprotests from registered voters or landowners in the proposed CFD or the Future Annexation Area.Staff has confirmed that there are no registered voters in the boundaries of CFD No. 2023­1 or theFuture Annexation Area, and the Developer is the only landowner in CFD No. 2023­1.The council may continue the formation hearing, but the hearing generally must be completed within 30days. Hearings about the formation of CFD No. 2023­1 and Improvement Area No. 1 of CFD No. 2023­1 may be further continued for no more than six months if the City Council finds that the complexity of theproposed formation or the need for public participation requires additional time.Subsequent Legislative Steps. After completion of the public hearings, and assuming there is noprotest that prevents the process from proceeding, the next legislative step would be for the CityCouncil to adopt the following resolutions:• Resolution of the City Council Forming a Community Facilities District, an Improvement Areaand a Future Annexation Area, Providing for Future Improvement Areas, and DeterminingOther Related Matters. Adoption of this resolution forms CFD No. 2023­1, Improvement Area No.1 of CFD No. 2023­1 and the Future Annexation Area, subject to a favorable vote of the qualifiedlandowner elector. This resolution also approves the form of Acquisition Agreement andauthorizes an authorized representative to execute the Acquisition Agreement for and on behalf ofthe City, and to take all actions necessary to implement the Acquisition Agreement. • Resolution of the City Council Determining the Necessity to Incur Bonded Indebtedness andOther Debt.This resolution establishes the maximum amount of bonded indebtedness forImprovement Area No. 1 of CFD No. 2023­1, subject to a favorable vote of the qualifiedlandowner elector in Improvement Area No. 1 of CFD No. 2023­1, and establishes the necessityto incur other debt for Improvement Area No. 1 of CFD No. 2023­1. This resolution alsoestablishes the maximum bonded indebtedness, and the necessity to incur other debt, for theremainder of CFD No. 2023­1.• Resolution of the City Council Calling Special Landowner Election in Improvement Area No.1of CFD No. 2023­1. This resolution calls for an election to be held within Improvement Area No. 1of CFD No. 2023­1 to consider the issues of the levy of the special tax, the incurring of bondedindebtedness and other debt and the establishment of the appropriations limit for CFD No. 2023­1. Because there are no registered voters in Improvement Area No. 1 of CFD No. 2023­1, theDeveloper is the qualified elector for Improvement Area No. 1 of CFD No. 2023­1.Election. After adoption of the three resolutions listed above, the mayor will ask the city clerk to openany ballot she has received from the qualified landowner elector and report on the outcome of theelection for Improvement Area No. 1 of CFD No. 2023­1. The city clerk previously caused mail ballot(s)to be sent to the Developer with instructions to return the ballot(s) to her by the time of the publichearings.Final Legislative Steps. After completion of the election, and assuming a favorable vote by theDeveloper, the next legislative step would be for the council to adopt the following resolutions andintroduce an ordinance levying special taxes in CFD No. 2023­1:• Resolution of the City Council Declaring Results of Special Election and Directing Recordingof Notice of Special Tax Lien. The council should consider this resolution immediately after thecity clerk has opened the ballots and counted votes. The resolution declares the results of theelection within Improvement Area No. 1 of CFD No. 2023­1. • Resolution of the City Council Authorizing the Issuance of Bonds for Improvement Area No. 1of CFD No. 2023­1. This resolution authorizes the issuance of bonds for Improvement Area No. 1of CFD No. 2023­1, subject to staff returning to the council for approval of the documentation for a specific financing.
• Introduction of Ordinance of the City Council Levying Special Taxes within CFD No. 2023­1.

The Mello­Roos Act requires special taxes to be levied by ordinance. This Ordinance provides for the levy of special taxes in the entire CFD No. 2023­1. The City Council should introduce this ordinance tonight (after waiving a full reading) and consider the ordinance for adoption at a subsequent City Council meeting.

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

Facilities Special Tax.Immediately after formation of CFD No. 2023­1, Improvement Area No. 1 of CFD No. 2023­1 and the Future Annexation Area, 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 with respect to Improvement Area No. 1 of CFD No. 2023­1 (the bonds will not be payable from any other City funds) and the City’s costs of administering CFD No. 2023­1.

Properties in the Future Annexation Area may annex into CFD No. 2023­1, after which the Facilities Special Tax will be levied on those properties also. If properties annex into a new Improvement Area, the Facilities Special Tax will reflect the size, type and price of the proposed homes in the 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 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 Improvement Area.

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

The Resolution of Formation 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. 2023­1with 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.

Bonds. Staff expects to return to the council for approval of the issuance of bonds and related documents in the second or third quarter of calendar year 2024.

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 a Deposit and Reimbursement Agreement between the City and the Developer, and any bonds issued for CFD No. 2023­1will be payable only by special taxes levied in Packet Page 476 of 765

Agenda Item No: 14.AGENDA REPORTDATE:February 21, 2023 TO:Mayor and City CouncilFROM:David Gassaway, City ManagerSUBJECT:Public Hearing; and Resolutions 2023­31 Through 2023­35 and Ordinance 2023­05for Proceedings (Including a Landowner Election) to Establish a Community FacilitiesDistrict, One or More Improvement Areas and a Future Annexation Area for the One LakeProjectRECOMMENDED ACTIONHold public hearing, conduct landowner election, adopt resolutions and introduce ordinance.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”), petitioned the City to form anew community facilities district for Planning Area 5 of the Project to finance the Facilities and theServices.On January 17, 2023, the City Council commenced the process of forming (i) City of FairfieldCommunity 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 council is now being asked to (i) hold public hearings on establishing CFD No. 2023­1,Improvement Area No. 1 of CFD No. 2023­1 and the Future Annexation Area and incurringindebtedness for CFD No. 2023­1, (ii) adopt certain resolutions to form CFD No. 2023­1, ImprovementArea No. 1 of CFD No. 2023­1 and the Future Annexation Area and declare the necessity to incurindebtedness, (iii) hold a landowner election within Improvement Area No. 1 of CFD No. 2023­1 and (iv)introduce an ordinance ordering the levy of special taxes within CFD No. 2023­1.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). TheProperty is proposed for development as a 358.5­acre master planned residential community known asOne Lake with 2,226 single­family detached and multi­family homes and 70,000 square feet ofcommercial development. The Developer estimates that the development of the Project will requiremore than $219.4 million of offsite and onsite infrastructure improvements (not including the cost of thefire station), and that approximately $97.4 million of those improvements are eligible for financing underthe 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 tothe Project Area (as defined in the Development Agreement) and may not be a publicimprovement funded by a development impact fee, including the Northeast Fee. The fire station tobe 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 aninfrastructure CFD may not cause the combined total of the 1% ad valorem property tax, anyexisting 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 estimatedassessed valuation of the residential properties proposed to be included in the infrastructureCFD, but the authorized percentage was increased to 1.65% for Planning Area 5 pursuant to theFourth Amendment to Development Agreement. The Development Agreement requires theestimated assessed valuation of residential property to be determined by the City at the time offormation of the infrastructure CFD based on the estimated sales price of each fully developedresidential unit. The 1.65% target excludes HOA dues, assessments related to any lighting andlandscaping maintenance costs required by the Development Agreement (including those fundedby the Train Station Specific Plan CFD) and any utility charges, utility user tax, parcel tax, salestax 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 (CFD No. 2023­1) would finance substantially the same Facilities and the same Services as CFD 2019­1, although thespecial tax rates would reflect the 1.65% all­in tax rate.Prior Proceedings for CFD No. 2023­1. At the City Council meeting on January 17, 2023, the Councilapproved resolutions of intention to initiate the process of forming and incurring indebtedness for CFDNo. 2023­1.Boundary Map. Since January 17, 2023, City staff and its consultants caused the boundary map of CFD No.2023­1, Improvement Area No. 1 of CFD No. 2023­1 and the Future Annexation Area to be recorded in theSolano County Recorder’s Office.Acquisition Agreement . City staff and its consultants have also prepared a form of AcquisitionAgreement (the “Acquisition Agreement”; see Attachment 1) between the City and Developer, pursuantto which the City may accept the public infrastructure to be financed by CFD No. 2023­1. Public Hearing. The City caused publication of two notices of public hearing in the Daily Republic onFebruary 1, 2023, regarding the public hearings to occur tonight. One notice invites interested parties tospeak for or against the establishment of CFD No. 2023­1, Improvement Area No. 1 of CFD No. 2023­1 and the Future Annexation Area, the extent of CFD No. 2023­1, Improvement Area No. 1 of CFD No.2023­1 and the Future Annexation Area or the furnishing of the specified facilities and services. Theother notice invites interested parties to speak for or against the necessity of incurring bonds in thefollowing maximum amounts and other debt to finance the costs of the Facilities:Improvement Area No. 1 of CFD No. 2023­1 Bond Limit: $90,000,000.Remainder of CFD No. 2023­1 Bond Limit: $15,000,000.Prior to the next legislative step in the formation process, it is necessary for the City Council to hold thepublic hearings described above.Protests against the establishment of CFD No. 2023­1, Improvement Area No. 1 of CFD No. 2023­1and the Future Annexation Area, the special taxes to be levied in Improvement Area No. 1 of CFD No.2023­1, the proposed facilities and services to be financed by CFD No. 2023­1 and the proposedindebtedness for CFD No. 2023­1 may be made orally or in writing by any interested persons ortaxpayers. However, the council will be obligated to halt the process of forming CFD No. 2023­1 only asa result of majority protests from registered voters or landowners in the proposed CFD. The council willbe obligated to halt the process of forming the Future Annexation Area only as a result of majorityprotests from registered voters or landowners in the proposed CFD or the Future Annexation Area.Staff has confirmed that there are no registered voters in the boundaries of CFD No. 2023­1 or theFuture Annexation Area, and the Developer is the only landowner in CFD No. 2023­1.The council may continue the formation hearing, but the hearing generally must be completed within 30days. Hearings about the formation of CFD No. 2023­1 and Improvement Area No. 1 of CFD No. 2023­1 may be further continued for no more than six months if the City Council finds that the complexity of theproposed formation or the need for public participation requires additional time.Subsequent Legislative Steps. After completion of the public hearings, and assuming there is noprotest that prevents the process from proceeding, the next legislative step would be for the CityCouncil to adopt the following resolutions:• Resolution of the City Council Forming a Community Facilities District, an Improvement Areaand a Future Annexation Area, Providing for Future Improvement Areas, and DeterminingOther Related Matters. Adoption of this resolution forms CFD No. 2023­1, Improvement Area No.1 of CFD No. 2023­1 and the Future Annexation Area, subject to a favorable vote of the qualifiedlandowner elector. This resolution also approves the form of Acquisition Agreement andauthorizes an authorized representative to execute the Acquisition Agreement for and on behalf ofthe City, and to take all actions necessary to implement the Acquisition Agreement. • Resolution of the City Council Determining the Necessity to Incur Bonded Indebtedness andOther Debt.This resolution establishes the maximum amount of bonded indebtedness forImprovement Area No. 1 of CFD No. 2023­1, subject to a favorable vote of the qualifiedlandowner elector in Improvement Area No. 1 of CFD No. 2023­1, and establishes the necessityto incur other debt for Improvement Area No. 1 of CFD No. 2023­1. This resolution alsoestablishes the maximum bonded indebtedness, and the necessity to incur other debt, for theremainder of CFD No. 2023­1.• Resolution of the City Council Calling Special Landowner Election in Improvement Area No.1of CFD No. 2023­1. This resolution calls for an election to be held within Improvement Area No. 1of CFD No. 2023­1 to consider the issues of the levy of the special tax, the incurring of bondedindebtedness and other debt and the establishment of the appropriations limit for CFD No. 2023­1. Because there are no registered voters in Improvement Area No. 1 of CFD No. 2023­1, theDeveloper is the qualified elector for Improvement Area No. 1 of CFD No. 2023­1.Election. After adoption of the three resolutions listed above, the mayor will ask the city clerk to openany ballot she has received from the qualified landowner elector and report on the outcome of theelection for Improvement Area No. 1 of CFD No. 2023­1. The city clerk previously caused mail ballot(s)to be sent to the Developer with instructions to return the ballot(s) to her by the time of the publichearings.Final Legislative Steps. After completion of the election, and assuming a favorable vote by theDeveloper, the next legislative step would be for the council to adopt the following resolutions andintroduce an ordinance levying special taxes in CFD No. 2023­1:• Resolution of the City Council Declaring Results of Special Election and Directing Recordingof Notice of Special Tax Lien. The council should consider this resolution immediately after thecity clerk has opened the ballots and counted votes. The resolution declares the results of theelection within Improvement Area No. 1 of CFD No. 2023­1. • Resolution of the City Council Authorizing the Issuance of Bonds for Improvement Area No. 1of CFD No. 2023­1. This resolution authorizes the issuance of bonds for Improvement Area No. 1of CFD No. 2023­1, subject to staff returning to the council for approval of the documentation for aspecific financing.• Introduction of Ordinance of the City Council Levying Special Taxes within CFD No. 2023­1.The Mello­Roos Act requires special taxes to be levied by ordinance. This Ordinance provides forthe levy of special taxes in the entire CFD No. 2023­1. The City Council should introduce thisordinance tonight (after waiving a full reading) and consider the ordinance for adoption at asubsequent City Council meeting.Use of Special Taxes; Transition from Facilities Special Tax to Services Special Tax.Facilities Special Tax.Immediately after formation of CFD No. 2023­1, Improvement Area No. 1 ofCFD No. 2023­1 and the Future Annexation Area, a special tax to finance public infrastructure (a“Facilities Special Tax”) will be levied annually on taxable properties that are located within theboundaries of Improvement Area No. 1 of CFD No. 2023­1. The Facilities Special Tax will pay debtservice on any bonds issued for CFD No. 2023­1 with respect to Improvement Area No. 1 of CFD No.2023­1 (the bonds will not be payable from any other City funds) and the City’s costs of administeringCFD No. 2023­1.Properties in the Future Annexation Area may annex into CFD No. 2023­1, after which theFacilities Special Tax will be levied on those properties also. If properties annex into a newImprovement Area, the Facilities Special Tax will reflect the size, type and price of the proposed homesin the Improvement Area.Services Special Tax. As described above, the Facilities Special Taxes will transition to a specialtax levied to pay for public services (a “Services Special Tax”). This transition will occur independentlyfor each Improvement Area, after the earlier of (i) 50 years and (ii) the date on which the Citydetermines that all bonds issued for the Improvement Area have been paid and there is no other publicinfrastructure that the City intends to fund with Improvement Area.For each Improvement Area, the Services Special Tax will be 25% of the Facilities Special Tax.The Resolution of Formation 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 islocated within the boundaries of CFD No. 2023­1) and any other real property or tangible propertywithin the boundaries of CFD No. 2023­1with 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 City. 2.Fire protection and suppression services and ambulance and paramedic services provided to theProject.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.Bonds. Staff expects to return to the council for approval of the issuance of bonds and relateddocuments in the second or third quarter of calendar year 2024.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 a Deposit and Reimbursement Agreement between the City and the Developer, and any bonds issued for CFD No. 2023­1will 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.

The estimated costs of the public infrastructure and the public services to be financed by CFD No. 2023­1 are described in the Community Facilities District Report (Attachment 8).

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 as planned 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, Finance Director
(707) 428­7629
[email protected]
COORDINATED WITH
City Attorney's Office, Community Development Department, Public Works Department ATTACHMENTS:

Description
Attachment 1: Acquisition Agreement
Attachment 2: Resolution of the City Council of the City of Fairfield Forming a Community Facilities District, An Improvement Area and A Future Annexation Area, Providing for Future Improvement Areas, and Determining Other Related Matters Attachment 3: Resolution of the City Council of the City of Fairfield Determining Necessity to Incur Bonded Indebtedness and Other Debt
Attachment 4: Resolution of the City Council of the City of Fairfield Approve Calling a Special Landowner Election in Improvement Area No. 1 of the City of Fairfield Community Facilities District No. 2023­1 (One Lake Planning Area 5)
Attachment 5: Resolution of the City Council of the City of Fairfield Declaring the Results of Special Election and Directing Recording of Notice of Special Tax Lien Attachment 6: Resolution of the City Council of the City of Fairfield Authorizing the Issuance and Sale of Special Tax Bonds for City of Fairfield Community Facilities District No. 2023­1 (One Lake Planning Area 5) with Respect to Improvement Area No. 1 Attachment 7: Ordinance of the City Council of the City of Fairfield Levying Special Taxes Within City of Fairfield Community Facilities District No. 2023­1 (One Lake Planning Area 5) Attachment 8: Community Facilities District Report
REVIEWERS:

Reviewer Action Date
Burleson, Michele Approved 2/8/2023 ­ 8:13 PM
Burleson, Michele Approved 2/8/2023 ­ 8:25 PM
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Agenda Item No: 14.AGENDA REPORTDATE:February 21, 2023 TO:Mayor and City CouncilFROM:David Gassaway, City ManagerSUBJECT:Public Hearing; and Resolutions 2023­31 Through 2023­35 and Ordinance 2023­05for Proceedings (Including a Landowner Election) to Establish a Community FacilitiesDistrict, One or More Improvement Areas and a Future Annexation Area for the One LakeProjectRECOMMENDED ACTIONHold public hearing, conduct landowner election, adopt resolutions and introduce ordinance.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”), petitioned the City to form anew community facilities district for Planning Area 5 of the Project to finance the Facilities and theServices.On January 17, 2023, the City Council commenced the process of forming (i) City of FairfieldCommunity 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 council is now being asked to (i) hold public hearings on establishing CFD No. 2023­1,Improvement Area No. 1 of CFD No. 2023­1 and the Future Annexation Area and incurringindebtedness for CFD No. 2023­1, (ii) adopt certain resolutions to form CFD No. 2023­1, ImprovementArea No. 1 of CFD No. 2023­1 and the Future Annexation Area and declare the necessity to incurindebtedness, (iii) hold a landowner election within Improvement Area No. 1 of CFD No. 2023­1 and (iv)introduce an ordinance ordering the levy of special taxes within CFD No. 2023­1.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). TheProperty is proposed for development as a 358.5­acre master planned residential community known asOne Lake with 2,226 single­family detached and multi­family homes and 70,000 square feet ofcommercial development. The Developer estimates that the development of the Project will requiremore than $219.4 million of offsite and onsite infrastructure improvements (not including the cost of thefire station), and that approximately $97.4 million of those improvements are eligible for financing underthe 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 tothe Project Area (as defined in the Development Agreement) and may not be a publicimprovement funded by a development impact fee, including the Northeast Fee. The fire station tobe 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 aninfrastructure CFD may not cause the combined total of the 1% ad valorem property tax, anyexisting 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 estimatedassessed valuation of the residential properties proposed to be included in the infrastructureCFD, but the authorized percentage was increased to 1.65% for Planning Area 5 pursuant to theFourth Amendment to Development Agreement. The Development Agreement requires theestimated assessed valuation of residential property to be determined by the City at the time offormation of the infrastructure CFD based on the estimated sales price of each fully developedresidential unit. The 1.65% target excludes HOA dues, assessments related to any lighting andlandscaping maintenance costs required by the Development Agreement (including those fundedby the Train Station Specific Plan CFD) and any utility charges, utility user tax, parcel tax, salestax 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 (CFD No. 2023­1) would finance substantially the same Facilities and the same Services as CFD 2019­1, although thespecial tax rates would reflect the 1.65% all­in tax rate.Prior Proceedings for CFD No. 2023­1. At the City Council meeting on January 17, 2023, the Councilapproved resolutions of intention to initiate the process of forming and incurring indebtedness for CFDNo. 2023­1.Boundary Map. Since January 17, 2023, City staff and its consultants caused the boundary map of CFD No.2023­1, Improvement Area No. 1 of CFD No. 2023­1 and the Future Annexation Area to be recorded in theSolano County Recorder’s Office.Acquisition Agreement . City staff and its consultants have also prepared a form of AcquisitionAgreement (the “Acquisition Agreement”; see Attachment 1) between the City and Developer, pursuantto which the City may accept the public infrastructure to be financed by CFD No. 2023­1. Public Hearing. The City caused publication of two notices of public hearing in the Daily Republic onFebruary 1, 2023, regarding the public hearings to occur tonight. One notice invites interested parties tospeak for or against the establishment of CFD No. 2023­1, Improvement Area No. 1 of CFD No. 2023­1 and the Future Annexation Area, the extent of CFD No. 2023­1, Improvement Area No. 1 of CFD No.2023­1 and the Future Annexation Area or the furnishing of the specified facilities and services. Theother notice invites interested parties to speak for or against the necessity of incurring bonds in thefollowing maximum amounts and other debt to finance the costs of the Facilities:Improvement Area No. 1 of CFD No. 2023­1 Bond Limit: $90,000,000.Remainder of CFD No. 2023­1 Bond Limit: $15,000,000.Prior to the next legislative step in the formation process, it is necessary for the City Council to hold thepublic hearings described above.Protests against the establishment of CFD No. 2023­1, Improvement Area No. 1 of CFD No. 2023­1and the Future Annexation Area, the special taxes to be levied in Improvement Area No. 1 of CFD No.2023­1, the proposed facilities and services to be financed by CFD No. 2023­1 and the proposedindebtedness for CFD No. 2023­1 may be made orally or in writing by any interested persons ortaxpayers. However, the council will be obligated to halt the process of forming CFD No. 2023­1 only asa result of majority protests from registered voters or landowners in the proposed CFD. The council willbe obligated to halt the process of forming the Future Annexation Area only as a result of majorityprotests from registered voters or landowners in the proposed CFD or the Future Annexation Area.Staff has confirmed that there are no registered voters in the boundaries of CFD No. 2023­1 or theFuture Annexation Area, and the Developer is the only landowner in CFD No. 2023­1.The council may continue the formation hearing, but the hearing generally must be completed within 30days. Hearings about the formation of CFD No. 2023­1 and Improvement Area No. 1 of CFD No. 2023­1 may be further continued for no more than six months if the City Council finds that the complexity of theproposed formation or the need for public participation requires additional time.Subsequent Legislative Steps. After completion of the public hearings, and assuming there is noprotest that prevents the process from proceeding, the next legislative step would be for the CityCouncil to adopt the following resolutions:• Resolution of the City Council Forming a Community Facilities District, an Improvement Areaand a Future Annexation Area, Providing for Future Improvement Areas, and DeterminingOther Related Matters. Adoption of this resolution forms CFD No. 2023­1, Improvement Area No.1 of CFD No. 2023­1 and the Future Annexation Area, subject to a favorable vote of the qualifiedlandowner elector. This resolution also approves the form of Acquisition Agreement andauthorizes an authorized representative to execute the Acquisition Agreement for and on behalf ofthe City, and to take all actions necessary to implement the Acquisition Agreement. • Resolution of the City Council Determining the Necessity to Incur Bonded Indebtedness andOther Debt.This resolution establishes the maximum amount of bonded indebtedness forImprovement Area No. 1 of CFD No. 2023­1, subject to a favorable vote of the qualifiedlandowner elector in Improvement Area No. 1 of CFD No. 2023­1, and establishes the necessityto incur other debt for Improvement Area No. 1 of CFD No. 2023­1. This resolution alsoestablishes the maximum bonded indebtedness, and the necessity to incur other debt, for theremainder of CFD No. 2023­1.• Resolution of the City Council Calling Special Landowner Election in Improvement Area No.1of CFD No. 2023­1. This resolution calls for an election to be held within Improvement Area No. 1of CFD No. 2023­1 to consider the issues of the levy of the special tax, the incurring of bondedindebtedness and other debt and the establishment of the appropriations limit for CFD No. 2023­1. Because there are no registered voters in Improvement Area No. 1 of CFD No. 2023­1, theDeveloper is the qualified elector for Improvement Area No. 1 of CFD No. 2023­1.Election. After adoption of the three resolutions listed above, the mayor will ask the city clerk to openany ballot she has received from the qualified landowner elector and report on the outcome of theelection for Improvement Area No. 1 of CFD No. 2023­1. The city clerk previously caused mail ballot(s)to be sent to the Developer with instructions to return the ballot(s) to her by the time of the publichearings.Final Legislative Steps. After completion of the election, and assuming a favorable vote by theDeveloper, the next legislative step would be for the council to adopt the following resolutions andintroduce an ordinance levying special taxes in CFD No. 2023­1:• Resolution of the City Council Declaring Results of Special Election and Directing Recordingof Notice of Special Tax Lien. The council should consider this resolution immediately after thecity clerk has opened the ballots and counted votes. The resolution declares the results of theelection within Improvement Area No. 1 of CFD No. 2023­1. • Resolution of the City Council Authorizing the Issuance of Bonds for Improvement Area No. 1of CFD No. 2023­1. This resolution authorizes the issuance of bonds for Improvement Area No. 1of CFD No. 2023­1, subject to staff returning to the council for approval of the documentation for aspecific financing.• Introduction of Ordinance of the City Council Levying Special Taxes within CFD No. 2023­1.The Mello­Roos Act requires special taxes to be levied by ordinance. This Ordinance provides forthe levy of special taxes in the entire CFD No. 2023­1. The City Council should introduce thisordinance tonight (after waiving a full reading) and consider the ordinance for adoption at asubsequent City Council meeting.Use of Special Taxes; Transition from Facilities Special Tax to Services Special Tax.Facilities Special Tax.Immediately after formation of CFD No. 2023­1, Improvement Area No. 1 ofCFD No. 2023­1 and the Future Annexation Area, a special tax to finance public infrastructure (a“Facilities Special Tax”) will be levied annually on taxable properties that are located within theboundaries of Improvement Area No. 1 of CFD No. 2023­1. The Facilities Special Tax will pay debtservice on any bonds issued for CFD No. 2023­1 with respect to Improvement Area No. 1 of CFD No.2023­1 (the bonds will not be payable from any other City funds) and the City’s costs of administeringCFD No. 2023­1.Properties in the Future Annexation Area may annex into CFD No. 2023­1, after which theFacilities Special Tax will be levied on those properties also. If properties annex into a newImprovement Area, the Facilities Special Tax will reflect the size, type and price of the proposed homesin the Improvement Area.Services Special Tax. As described above, the Facilities Special Taxes will transition to a specialtax levied to pay for public services (a “Services Special Tax”). This transition will occur independentlyfor each Improvement Area, after the earlier of (i) 50 years and (ii) the date on which the Citydetermines that all bonds issued for the Improvement Area have been paid and there is no other publicinfrastructure that the City intends to fund with Improvement Area.For each Improvement Area, the Services Special Tax will be 25% of the Facilities Special Tax.The Resolution of Formation 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 islocated within the boundaries of CFD No. 2023­1) and any other real property or tangible propertywithin the boundaries of CFD No. 2023­1with 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 City. 2.Fire protection and suppression services and ambulance and paramedic services provided to theProject.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.Bonds. Staff expects to return to the council for approval of the issuance of bonds and relateddocuments in the second or third quarter of calendar year 2024.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 a Deposit and Reimbursement Agreement between the City and theDeveloper, and any bonds issued for CFD No. 2023­1will be payable only by special taxes levied inCFD No. 2023­1.The Services Special Tax will provide an ongoing source of funds to pay for public services provided bythe City to the Project.The estimated costs of the public infrastructure and the public services to be financed by CFD No.2023­1 are described in the Community Facilities District Report (Attachment 8).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 as planned and delay construction. However, pursuant to the DevelopmentAgreement, the City has agreed to cooperate with the Developer in forming an infrastructure CFD. Inaddition, not allowing formation of CFD No. 2023­1 would eliminate a perpetual source of funding forpublic services provided by the City to the Project.STAFF CONTACTJohn Furtado, Finance Director(707) 428­[email protected] WITHCity Attorney's Office, Community Development Department, Public Works DepartmentATTACHMENTS:DescriptionAttachment 1: Acquisition AgreementAttachment 2: Resolution of the City Council of the City of Fairfield Forming a CommunityFacilities District, An Improvement Area and A Future Annexation Area, Providing for FutureImprovement Areas, and Determining Other Related MattersAttachment 3: Resolution of the City Council of the City of Fairfield Determining Necessity toIncur Bonded Indebtedness and Other DebtAttachment 4: Resolution of the City Council of the City of Fairfield Approve Calling a SpecialLandowner Election in Improvement Area No. 1 of the City of Fairfield Community FacilitiesDistrict No. 2023­1 (One Lake Planning Area 5)Attachment 5: Resolution of the City Council of the City of Fairfield Declaring the Results ofSpecial Election and Directing Recording of Notice of Special Tax LienAttachment 6: Resolution of the City Council of the City of Fairfield Authorizing the Issuanceand Sale of Special Tax Bonds for City of Fairfield Community Facilities District No. 2023­1(One Lake Planning Area 5) with Respect to Improvement Area No. 1Attachment 7: Ordinance of the City Council of the City of Fairfield Levying Special TaxesWithin City of Fairfield Community Facilities District No. 2023­1 (One Lake Planning Area 5)Attachment 8: Community Facilities District ReportREVIEWERS:Reviewer Action Date Burleson, Michele Approved 2/8/2023 ­ 8:13 PM
Burleson, Michele Approved 2/8/2023 ­ 8:25 PM
Burleson, Michele Approved 2/8/2023 ­ 8:26 PM
Beavers, Esther Approved 2/9/2023 ­ 10:49 AM
Beavers, Esther Approved 2/9/2023 ­ 10:50 AM
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Jones Hall draft 1-30-23

ACQUISITION AGREEMENT

Relating to:

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

THIS ACQUISITION AGREEMENT (this “Agreement”), dated as of February 21, 2023, is by and between the City of Fairfield, a municipal corporation and a political subdivision of the State of California (the “City”), for itself and on behalf of City of Fairfield Community Facilities District No. 2023-1 (One Lake Planning Area 5) (the “CFD”), and One Lake Holding LLC, a Delaware limited liability company (the “Developer”).

RECITALS
A. In connection with the development of the One Lake project (the "Project"), the City Council of the City (the “City Council”) previously established the City of Fairfield Community Facilities District No. 2019-1 (One Lake) ("CFD No. 2019-1"). CFD No. 2019-1 was formed over Planning Area 4 of the Project and originally identified Planning Area 5 as future annexation area.

CFD No. 2019-1 was authorized to finance facilities and services necessary for the development of the Project as a whole. The Developer originally intended to annex Planning Area 5 into CFD No. 2019-1, but due to changing market conditions and changes to the Development Agreement governing the Project, the Developer asked the City to form a new community facilities district over Planning Area 5. The new community facilities district is intended to continue the financing of the facilities and services for the Project as a whole.

B. In furtherance of the foregoing, the City Council has established the CFD under the Mello-Roos Community Facilities Act of 1982, as amended, Chapter 2.5 (commencing with Section 53311) of Part 1 of Division 2 of Title 5 of the California Government Code (the “Act”) for the financing, among other things, of the public facilities described in the City’s Resolution No. 2022-02 adopted by the City Council on January 17, 2023 (the “Resolution of Formation”) and listed on Exhibit A hereto (the “Facilities” or individually, a “Facility”). The CFD initially consists only of Improvement Area No. 1 of the City of Fairfield Community Facilities District No. 2023 -1 (One Lake Planning Area 5) (“Improvement Area No. 1”), but the City is also establishing a future annexation area for the CFD (the “Future Annexation Area”), from which properties may annex into the CFD and may either annex into Improvement Area No. 1 or a new improvement area (“Future Improvement Area”). As used in this Agreement, the term “CFD” means, as the context requires, the CFD, Improvement No. 1, and/or each Future Improvement Area. This Agreement applies to the financing of Facilities through the CFD, Improvement Area No. 1 and each Future Packet Page 479 of 765Attachment 1 Page 1 of 37

Improvement Area, and the Facilities may be financed by Improvement Area No. 1 and each Future Improvement Area regardless of the physical location of the Facilities.

C. The Developer is developing land within the CFD, through itself and through one or more wholly-owned subsidiaries of the Developer (herein, the “Subsidiaries”).

D. The Facilities are necessary to mitigate impacts arising from development occurring in the Project, and the City, CFD and Developer will benefit from a coordinated plan of design, engineering and construction of the Facilities and the development of the land owned by the Developer and its Subsidiaries that is located within the Project.

E. The City has determined that it will obtain no advantage from undertaking the construction by the City directly of the Facilities and that the provisions of this Agreement require that the Facilities be constructed by the Developer as if they had been constructed under the direction and supervision of the City.

F. Subject to the terms of this Agreement, the City intends to proceed with the authorization and issuance of one or more series of bonds or other debt (as defined in the Act) for and on behalf of the CFD (the “Bonds”) under the Act.

DEFINITIONS
Capitalized terms used in this Agreement, in addition to those defined in the Recitals to this Agreement, shall have the following meanings:
“Acceptable Title” means title to land or Facilities (whether in fee or otherwise, as determined by the Public Works Director in consultation with the City’s Bond Counsel), in form acceptable to the Public Works Director, free and clear of all liens, taxes, assessments, leases, easements and encumbrances, whether or not recorded, as evidenced by such title guaranty or title insurance as the Public Works Director may require, but subject to any exceptions determined in writing by the City or another public agency or utility designated by the City to accept a Facility from the Developer as not interfering with the actual or intended use of the land.

Notwithstanding the foregoing, an irrevocable offer of dedication may constitute land with an “Acceptable Title” if (i) such offer is necessary to satisfy a condition to a tentative or final parcel map, (ii) such offer is in a form acceptable to the Public Works Director, (iii) the Public Works Director has no reason to believe that such offer of dedication will not be accepted by the applicable governmental entity or utility, and (iv) the Developer commits in writing not to allow any liens or other encumbrances to be imp osed on such property prior to its acceptance and to indemnify the City against the imposition of any such lien or encumbrance. “Acceptance Date” means the date upon which the City or another public agency or utility designated by the City to accept a Facility from the Developer takes final action to accept dedication of or transfer of title to a Facility.

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“Actual Cost” means, with respect to a Facility or a Discrete Component, an amount equal to the sum of (a) the actual, reasonable cost of constructing such Facility or Discrete Component, including labor, material, and equipment costs, (b) the actual, reasonable cost of preparing the Plans for such Facility or Discrete Component, (c) the actual, reasonable cost of environmental evaluations required in the City’s determination specifically for such Facility or Discrete Component, (d) the amount of the fees actually paid to governmental agencies in order to obtain permits, licenses, or other necessary governmental approvals for such Facility or Discrete Component, (e) the actual, reasonable cost for construction management services for such Facility or Discrete Component paid to a third party with respect to overseeing and managing the construction in an amount not to exceed ten percent (10%) of the costs described in clause (a) above, (f) the actual, reasonable cost for professional services directly related to the construction of such Facility or Discrete Component, including engineering, inspection, construction staking, materials testing, and similar professional services, (g) the actual, reasonable cost of any title insurance required hereby for such Facility or Discrete Component, and (h) the actual, reasonable cost of any real property or interest therein acquired from a party other than the Developer, which real property or interest therein is either necessary for the construction of such Facility or Discrete Component (e.g., temporary construction easements, haul roads, etc.) or is required to be conveyed with such Facility or Discrete Component in order to convey Acceptable Title thereto to the City or another public agency or utility designated by the City to accept a Facility from the Developer, all as specified in a Payment Request that has been reviewed and approved by the Public Works Director who will be responsible for administering the acquisition of the Facility or Discrete Component; provided, however, that no item of cost relating to a Facility or Discrete Component shall be included in more than one category of cost under this definition; and provided further, however, that each item of cost shall be of the type required to be capitalized under generally accepted accounting principles in the United States of America.

Notwithstanding the foregoing, the Actual Cost of any Facility or Discrete Component shall not include any administrative or overhead expenses of the Developer, land use planning or subdivision costs of the Developer, or attorney’s fees related to the land use entitlement or subdivision process unless directly related to a Facility located offsite from the property within the CFD.
"CFD No. 2019-1" means the City of Fairfield Community Facilities District No. 2019-1 (One Lake).
"CFD No. 2019-1 Acquisition Agreement" means the Acquisition Agreement dated as of May 7, 2019, by and between the City, for itself and on behalf of CFD No. 2019 -1, and Canon Station LLC, as assigned by Canon Station LLC to One Lake Holding LLC by the Assignment and Assumption Agreement dated June 23, 2020.
"CFD No. 2019-1 Funding Sources" means the proceeds of bonds, prepayments of special taxes, and special taxes from CFD No. 2019-1.

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“Conditions of Approval” means the conditions of approvals and mitigation measures imposed in connection with the granting of the land use entitlements for the development of land in the Project, and any subdivision improvement, owner participation agreement, development or other agreement with the City relating to the development of the land in the Project or the installation of the Facilities.
“Development Agreement” means the Amended and Restated Development Agreement, by and between the City and Canon Station LLC, dated as of May 8, 2015 and recorded on June 10, 2015 as Document No. 201500051329, as amended by a First Amendment to Development Agreement recorded on February 17, 2016 as Document No. 201600011949, a Second Amendment to Development Agreement recorded on January 17, 2017 as Document No. 201700009022, a Third Amendment to Development Agreement, recorded on February 19, 2019 as Document No. 201900009074 and a Fourth Amendment to Development Agreement, recorded on June 22, 2021. The Development Agreement was assigned to and assumed by the Developer by the Assignment of Rights and Assumptions of Obligations Under Development Agreement, dated January 22, 2020, by and between Canon Station LLC and the Developer, recorded on January 24, 2020 as Document No. 202000006500. “Director of Finance” means the chief financial officer of the City. “Discrete Components” means the Discrete Components of each Facility described in Exhibit A attached hereto, which are either (i) functional segments or (ii) discrete components of a Facility the Actual Cost of which exceeds One Million Dollars ($1,000,000), which segments or components can be separately identified, inspected and completed, and be the subject of a Payment Request under this Agreement. Discrete Components do not have to be accepted by the City as a condition precedent to the payment of the Purchase Price therefor, but any such payment shall not be made until (y) the Discrete Component has been constructed in accordance with the Plans therefor and (z) in the case of segments that are not discrete components of a Facility the Actual Cost of which exceeds One Million Dollars ($1,000,000), the segment is functional and capable of serviceable use for its intended purpose, as determined by the Public Works Director in his sole discretion. Exhibit A may be amended or s upplemented from time to time by the Developer and the Public Works Director, without City Council approval, to add Facilities that are authorized to be financed by the CFD or to describe Discrete Components of any Facilities.
“Engineer of Record” means a licensed civil engineer employed by the Developer to perform the services described in this Agreement.
“Exhibit C Facilities” means the Facilities that were bid prior to the date of the CFD No. 2019-1 Acquisition Agreement and which are listed in Exhibit C attached to the CFD No. 2019-1 Acquisition Agreement.

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“Final Discrete Component” means the final Discrete Component of a Facility, the completion of which renders the Facility complete in accordance with the approved Plans by the City or other applicable governmental entity or utility designated by the City. “Fiscal Agent Agreement” means the indenture, fiscal agent agreement, resolution or other agreement under which the Bonds are issued, as such Fiscal Agent Agreement may be supplemented from time to time to accommodate additional bond issuances or as it may be amended from time to time.
“Funding Sources” shall mean, collectively, (A) the proceeds of Bonds of the CFD with respect to each Improvement Area, prepayments of special taxes collected prior to the issuance of the first series of Bonds of the CFD with respect to each Improvement Area pursuant to the applicable Rate and Method, and prepayments of special taxes otherwise allocated for Facilities under the applicable Rate and Method, all as further described in Section 3 herein, and (B) special taxes collected to directly finance Facilities under the applicable Rate and Method and which are allocated to fund such Facilities.
“Goals and Policies” means the Amended and Restated Statement of Goals and Policies Concerning Use of the Mello-Roos Community Facilities Act of 1982, as Amended,” adopted by the City Council on October 18, 2016, as may be amended from time to time. “Improvement Area” means Improvement Area No. 1 and any Future Improvement Area in the CFD designated in accordance with the Act.
“Payment Request” means a document, substantially in the form of Exhibit B hereto, to be used by the Developer in requesting payment of a Purchase Price. “Plans” means the plans, specifications, schedules and related construction contracts for the Facilities and/or any Discrete Components thereof approved pursuant to the applicable standards of the City or other public entity or utility designated by the City that will own, operate or maintain the Facilities when completed and acquired. “Project” means the One Lake project described in the Development Agreement. “Public Works Director” means the Director of Public Works of the City or such other official of the City acting in such capacity, o r the designee of such official. If the Facility is being transferred to another public agency or utility designated by the City, the Public Works Director shall mean the applicable representative of such public agency or utility if the context so requires. “Purchase Price” means the amount paid by the City for a Facility and/or any Discrete Components thereof determined in accordance with this Agreement less any amounts the City is required to reimburse the Developer as Reimbursement (as defined in the Development Agreement) pursuant to the Development Agreement from other sources of funds other than Funding Sources.

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“Rate and Method” means the rate and method of apportionment of the special tax for an Improvement Area adopted by the City.
“Risk Manager” means the person acting in the capacity of Risk Manager for the City.

AGREEMENTS
In consideration of the mutual promises and covenants set forth herein, and for other valuable consideration, the sufficiency of which is hereby acknowledged, the City and t he Developer agree as follows:

1. Recitals. The City and the Developer represent and warrant, each to the other, that the above recitals, as applicable to each, are true and correct.

2. Sale of Bonds.
a. City Proceedings. From time to time following the Developer’s written request, the City, on behalf of the CFD, shall consider conducting all necessary proceedings under the Act for the issuance, sale and delivery of one, or more series of Bonds with respect to the Improvement Areas, provided that nothing herein shall be construed as requiring the CFD to issue, or the City to cause the CFD to issue, the Bonds or any series thereof. Such proceedings and the principal amount, rates, terms and conditions and timing of the sale of each series of Bonds shall be consistent with the Goals and Policies and subject in all respects to the absolute discretion and approval of the City Council or such City officers to whom the City Council has delegated the authority for such absolute discretion and approval. b. Principal Amount. A maximum principal amount of bonded indebtedness has been established for Improvement Area No. 1 and for all Future Improvement Areas. Such maximum principal amount shall not apply to other debt issued by the City on behalf of the CFD.

The City can provide no assurances that it will be able to issue the entire authorized amount of the bonded indebtedness or issue other debt.
c. Termination.
(i) General. This Agreement shall terminate upon the later of (A) payment in full for all eligible Facilities or (B) five years following the final issuance of Bonds for the CFD to finance the Facilities.
(ii) Mutual Consent. This Agreement may be terminated by the mutual, written consent of the parties, in which event the City may let contracts for any remaining work related to the Facilities not theretofore acquired from the Developer hereunder, and use all or any portion of the monies in the Improvement Fund to pay for same, and the Developer shall have no claim or right to any further payments for the Purchase Price of Facilities Packet Page 484 of 765Attachment 1 Page 6 of 37

or Discrete Components, except as otherwise may be provided in such written consent.

(iii) City Election for Cause. The following events shall constitute grounds for the City to terminate this Agreement, without the consent of the Developer:

(A) The Developer shall be delinquent in the payment of two consecutive installments of special taxes levied in the CFD.

(B) The Developer shall abandon construction of the Facilities.

Failure for a period of three hundred sixty-five (365) days to undertake substantial work related to the construction of the Facilities, other than for a reason specified in Section 10 hereof, shall constitute such abandonment, it being understood that delays or stoppages approved by the City and Developer shall not constitute abandonment.

(C) The Developer shall breach any material covenant or default in the performance of any material obligation hereunder.

(D) The Developer shall transfer any of its rights or obligations under this Agreement without the prior written consent of the City.

(E) The Developer shall have made any material misrepresentation or omission in any written materials furnished in connection with any preliminary official statement, official statement, continuing disclosure agreement, or bond purchase contract used in connection with the sale of the Bonds.

(F) The Developer shall at any time challenge the validity of the CFD or any of the Bonds, or the levy of special taxes within the CFD, other than on the grounds that such levy was not made in accordance with the terms of the Rate and Method.

(G) A reduction or cancellation in the insurance required under Section 4(k).

Notwithstanding the foregoing, so long as any event listed in any of clauses (A) through and including (G) above has occurred, notice of which has been given by the City to the Packet Page 485 of 765Attachment 1 Page 7 of 37

Developer, and such event has not been cured or otherwise eliminated by the Developer, the City may in its discretion cease making payments for the Purchase Price of Fa cilities or Discrete Components except with respect to Facilities or Discrete Components for which a Payment Request has been submitted to the Public Works Director prior to the giving of such notice.

If any such event occurs, the City shall give written notice of its knowledge thereof to the Developer, and the Developer agrees to meet and confer with the Public Works Director and other appropriate City staff and consultants within twenty -one (21) calendar days of receipt of such notice as to options available to assure timely completion of the Facilities. Such options may include, but not be limited to, the termination of this Agreement by the City. If the City elects to terminate this Agreement, the City shall first notify the Developer (and any mortgage e or trust deed beneficiary specified in writing by the Developer to the City to receive such notice) of the grounds for such termination and allow the Developer a minimum of thirty (30) calendar days to eliminate or mitigate to the satisfaction of the Public Works Director the grounds for such termination. Such period shall be extended, at the sole discretion of the City, if the Developer, to the satisfaction of the City, is proceeding with diligence to eliminate or mitigate such grounds for termination. If at the end of such period (and any extension thereof), as determined solely by the City, the Developer has not eliminated or satisfactorily mitigated such grounds, to the satisfaction of the City, the City may then terminate this Agreement.

3. Use of Financing Proceeds.

a. Prepayments. Prior to the issuance of the first series of Bonds of the CFD with respect to an Improvement Area, the proceeds of any prepayments of special tax obligations for such Improvement Area shall be administered as provided in the Rate and Method for the Improvement Area. After the first series of Bonds of the CFD with respect to an Improvement Area are issued, the proceeds of any prepayments of special tax obligations for such Improvement Area shall be administered as provided in the Rate and Method and the Fiscal Agent Agreement. To the extent authorized under the Rate and Method or the Fiscal Agent Agreement, any prepayments of special tax obligations with respect to an Improvement Area before the issuance of the first series of Bonds with respect to an Improvement Area and any prepayments of special tax obligations with respect to the Improvement Area after the issuance of the first series of Bonds that are identified for payment of the Remaining Facilities Costs (as defined in the Rate and Method) shall be placed in a special fund to be held by the City (the “Remaining Facilities Fund), separate and apart from the proceeds of the Bonds. Available moneys in the Remaining Facilities Fund shall be applied, as determined by t he City in consultation with the Developer, to the costs of the acquisition of the Facilities or a portion thereof in accordance with this Agreement.

b. Bond Proceeds. The proceeds of each series of Bonds for the CFD with respect to an Improvement Area shall be deposited, held, invested, reinvested and disbursed as provided Packet Page 486 of 765Attachment 1 Page 8 of 37

in the Fiscal Agent Agreement. The net proceeds of each series of Bonds for the CFD with respect to an Improvement Area shall be set aside under the Fiscal Agent Agreement in a s eparate improvement fund for the Improvement Area (each, an “Improvement Fund”). Moneys in an Improvement Fund shall be withdrawn therefrom, in accordance with the provisions of the Fiscal Agent Agreement, for payment of all or a portion of the costs of ac quisition of the Facilities and the payment for Discrete Components thereof, all as determined by the City in consultation with the Developer and as herein provided. The City makes no warranty, express or implied, that the proceeds of the Bonds deposited and held in the Improvement Fund(s) and any investment earnings thereon deposited to the Improvement Fund(s), along with other Funding Sources, will be sufficient for payment of the Purchase Price of all Facilities or Discrete Components. The Developer acknowledges that the City is not obligated to issue any Bonds for the CFD and that nothing herein implies that the City has engaged the Developer to construct the Facilities, and further that the legal proceedings and the principal amount, interest rates, ter ms and conditions and timing of the sale of the Bonds shall be in all respects subject to the absolute discretion and approval of the City Council or such City officers to whom the City Council has delegated the authority for such absolute discretion and approval.

The Developer agrees that the City shall direct the investment of the funds on deposit in the funds and accounts established by or pursuant to the Fiscal Agent Agreement, including each Improvement Fund, and that the Developer has no right whatsoever to direct investments under the Fiscal Agent Agreement.

The City shall have no responsibility whatsoever to the Developer with respect to any investment of funds under the Fiscal Agent Agreement, including any loss of all or a portion of the principal invested or any penalty for liquidation of an investment. Any such loss may diminish the amounts available in the Improvement Fund(s) to pay the Purchase Price of Facilities and Discrete Components hereunder. The Developer further acknowledges that the obligation of any owner of real property in the CFD, including the Developer to the extent it owns any real property in the CFD, to pay special taxes levied in the CFD is not in any way dependent on (i) the availability of amounts in the Improvement Fund(s) to pay for all or any portion of the Facilities or Discrete Components thereof hereunder, or (ii) the alleged or actual misconduct of the City in the performance of its obligations under this Agreement, the Fiscal Agent Agreement, any subdivision agreement or amendment thereto or any other agreement to which the Developer and the City are signatories.

The Developer acknowledges that any lack of availability of amounts in the Improvement Fund(s) to pay the Purchase Price of Facilities or any Discrete Components thereof shall in no way diminish any obligation of the Developer with respect to the construction of or contributions for public facilities required by the Conditions of Approval or any governmental approval to which the Developer or any land within the CFD is subject.

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4. Construction of the Facilities.

a. Plans. The Developer represents and warrants that it has obtained or will obtain written approval of the Plans from all appropriate departments of the City and from any other public entity or public utility from which such approval must be obtained at the time and in accordance with applicable ordinances and regulations of the City, public entities and public utilities. The Developer further represents that the Facilities have been or will be constructed in full compliance with such Plans and any change orders thereto, as approved in the same manner.

Copies of all Plans shall be provided by the Developer to the Public Works Director, and in any event, as built drawings and a written assignment of the Plans for any Facility or Final Discrete Component to be acquired by the City shall be provided to the City prior to its acceptance of the Facility or Final Discrete Component. No such assignment of the Plans shall be construed to be a transfer of proprietary intellectual property by the Developer to City.

b. Duty of Developer to Construct. All Facilities and Discrete Components thereof to be acquired hereunder shall be constructed by or at the direction of the Developer in accordance with the approved Plans and the Conditions of Approval. The Developer shall perform all of its obligations hereunder and shall conduct all operations with respect to the construction of the Facilities and any Discrete Components thereof in a good, workmanl ike and commercially reasonable manner, with the standard of diligence and care normally employed by duly qualified persons utilizing their best efforts in the performance of comparable work and in accordance with generally accepted practices appropriate to the activities undertaken. The Developer shall employ at all times adequate staff or consultants with the requisite experience necessary to administer and coordinate all work related to the design, engineering, acquisition, construction and installation of the Facilities and any Discrete Components thereof to be acquired by the City from the Developer hereunder.

The Developer shall be obligated: (i) to construct and cause conveyance to the City or other applicable public entity or utility entity design ated by the City of all Facilities (including Discrete Components thereof) in accordance with the Conditions of Approval, and (ii) to use its own funds to pay all costs thereof in excess of the Purchase Prices thereof to be paid therefor hereunder and available Funding Sources to be paid therefor hereunder, except as may be otherwise expressly provided in the Conditions of Approval.

The Developer shall not be relieved of its obligation to construct each Facility (including Discrete Components thereof) and convey each such Facility to the City or applicable public entity or public utility designated by the City in accordance with the Conditions of Approval and terms hereof, even if there are insufficient Funding Sources to pay the Purchase Price thereof or the Purchase Price is less than the Actual Cost for a Facility or Discrete Component, and, in any event, this Agreement shall not affect any obligation of any owner of land in the CFD under any Conditions of Approval or any other agreement or governmental approval to which any land Packet Page 488 of 765Attachment 1 Page 10 of 37

within the CFD is subject, with respect to the public improvements required in connection with the development of the land within the CFD.

c. Labor Code Provisions. Pursuant to Section 1781 of the California Labor Code (“Labor Code”), the City hereby states and the Developer hereby acknowledges that the construction of the Facilities and any Discrete Components thereof and any other public improvements required by the Conditions of Approval by the Developer, which will be paid in part out of public funds, is “public work” (as defined in Section 1720 of the Labor Code) to which Section 1771 of the Labor Code applies, and the Developer hereby agrees that it shall cause the construction of the Facilities and any other public improvements required by the Conditions of Approval to be performed as “public work” as required by Section 1781 of the Labor Code.

Without limiting the foregoing, the Developer agrees to comply with the provisions of Sections 1720 et seq. of the Labor Code with respect to prevailing wages, as interpreted by the courts from time to time, including but not limited to, in Azusa Land Partners v. Dept. of Industrial Relations (2010) 191 Cal.App.4th 1.

d. Relationship to Public Works. This Agreement is for the acquisition of the Facilities or Discrete Components thereof by the City or an applicable public agency or public utility designated by the City from Funding Sources and is not intended to be a public works contract. The City and the Developer agree that the Facilities are of local, and not state-wide concern, and that the provisions of the California Public Contracts Code (“Public Contracts Code”) shall not apply to the construction of the Facilities or Discrete Components thereof. The City and the Developer agree that this Agreement is necessary to assure the timely and satisfactory completion of the Facilities and that compliance with the Public Contracts Code with respect to the Facilities would work an incongruity and would not p roduce an advantage to the City or the CFD.

If a Developer constructs or causes the construction of Facilities and seeks payment of the Purchase Price of such Facilities from the Funding Sources, the provisions of this Section 4(d) apply with respect thereto. Notwithstanding the foregoing, subsection (d) of this Section 4 does not apply to the Exhibit C Facilities. Such contracts and bids will be reviewed as set forth in Section 4(e) of the CFD No. 2019-1 Acquisition Agreement.

The Developer shall solicit at least three (3) competitive bids for each contract for the construction of Facilities and award all contracts for construction of Facilities (including any Discrete Components thereof), in each case consistent with the Plans and the Conditions of Approval, to the lowest responsible bidder among the competitive bids received.

This Section 4(d) applies to all direct contracts to be entered into by the Developer under this Section 4. This Section 4(d) does not apply to the purchase of materials by the Packet Page 489 of 765Attachment 1 Page 11 of 37

Developer or any contractor or for professional services associated with the construction of Facilities.

Notwithstanding the foregoing provisions, contract letting procedures that differ from the procedures in this Section 4(d) shall be deemed t o satisfy this Agreement if the Developer and the Director of Public Works agree in writing on such other contract letting procedures.

e. Reserved.

f. Performance and Payment Bonds. The Developer agrees to comply with all applicable performance and payment bonding requirements of the City (and other applicable public entities and/or public utilities) with respect to the construction of the Facilities and any other public improvements required by the Conditions of Approval in accordance with applicable provisions of the California Civil Code, including Sections 9550 and 9554 and Sections 66499 - 66499.10 of the California Government Code, if applicable. Any labor and materials and performance bonds that are required to be issued shall name the City as an additional insured.

g. Contracts and Change Orders. The Developer shall be responsible for entering into all contracts and any change orders required for the construction of the Facilities. If the change order is greater than $50,000 from the original contract price, then such contracts and change orders shall be submitted to the Public Works Director for review and approval as to cost and quantity and quality of work, and the Public Works Director shall have ten (10) calendar days to complete the approval.

h. Independent Contractor. In performing this Agreement, the Developer is an independent contractor and not the agent or employee of the City or the CFD. Neither the City nor the CFD shall be responsible for making any payments to any contractor, subcontractor, agent, employee or supplier of the Developer.

i. Periodic Meetings. From time to time at the request of the Public Works Director, representatives of the Developer shall meet and confer with City staff, consultants and contractors regarding matters arising hereunder with respect to the Facilities, Discrete Components, and the progress in constructing and acquiring the same, and as to any other matter related to the Facilities or this Agreement. The Developer shall advise the Public Works Director in advance of any coordination and scheduling meetings to be held with contractors relating to the Facilities or Discrete Components, in the ordinary course of performance of an individual contract. The Public Works Director shall have the right to be present at such meetings, and to meet and confer with individual contractors if deemed advisable by the Public Works Director to resolve disputes and/or ensure the proper completion of the Facilities and any Discrete Components.

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j. Scheduling. At the request of the Public Works Director, the Developer shall develop and shall maintain a project schedule providing for all major project elements included in the construction of the Facilities to be acquired hereunder, so that the whole project is scheduled in an efficient manner. If a schedule is requested, the Developer shall provide the Public Works Director with complete copies of the schedule and each update to the schedule for the Public Works Director’s review.

k. Insurance. The Developer shall, commencing prior to any physical work on the Facilities being performed, and at all times prior to the final Acceptance Date of all Facilities, maintain and keep in full force and effect, or cause the general contractor for the Facilities to maintain in full force and effect, insurance policies with coverage and limits of insurance required by the City or applicable public agency or public utility that will acquire such Facility, which insurance policies shall be maintained with insurers and under forms of policies reasonably satisfactory to the City or applicable public agency or public utility accepting the Facility. The Developer shall require and verify similar insurance on the part of its contractors and subcontractors.

All subcontractors employed on the work referred to in this Agreement shall meet the insurance requirements set forth in this Section 4(k) for the Developer. The Developer shall furnish certificates of insurance and endorsements for each subcontractor at least five (5) calendar days prior to the subcontractor entering the job site, or the Developer shall furnish the Risk Manager an endorsement including all subcontractors as insureds under its policies.

The cost of insurance required by this Section 4(k) shall be borne by the Developer and its subcontractors, and no compensation for purchasing insurance or additional coverage needed to meet these requirements will be paid for by the City, except such costs may be included as an Actual Cost.

In the event that any required insurance is reduced in coverage, canceled for any reason, voided or suspended, the Developer agrees that the City may arrange for insurance coverage as specified, and the Developer further agrees that administrative and premium costs m ay be deducted from any deposits or bonds the City may have, or from the Improvement Fund. Any insurance or self-insurance maintained by the City and its consultants, and each of its Councilmembers, officers, directors, officials, employees and volunteers shall be excess of the Developer’s insurance and shall not contribute with it.

Any failure to comply with reporting provisions of the policies shall not affect coverage provided to the City and its consultants, and each of its Councilmembers, officers, d irectors, officials, employees and volunteers.

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The Developer shall furnish to the Risk Manager certificates of insurance and endorsements and other evidence of coverage or copies of policies as may be reasonably required by the Risk Manager from time to time. Each required insurance policy coverage shall not be suspended, voided, canceled by either party, reduced in coverage or in limits except after fifteen (15) calendar days written notice by certified mail, return receipt requested, has been given to the Risk Manager.

l. No Duplication of Work. Collectively, it is the purpose of this Agreement and the CFD No. 2019-1 Acquisition Agreement to set forth the conditions for acquisition of the Facilities by the City. Facilities constructed pursuant to the CFD No. 2019-1 Acquisition Agreement automatically and without further action satisfy the conditions for acquisition in this Agreement, including, but not limited to, subsections (a) through (k) in this Section and subsections (a) through (e) of the following Section. To the extent that one or more of the conditions of the CFD No. 2019-1 Acquisition Agreement have already been satisfied, or actions required by the CFD No. 2019-1 Acquisition Agreement with respect to Facilities have already occurred, it shall not be necessary under this Agreement to demonstrate satisfaction of the conditions, or duplicate the actions previously taken. In clarification of the foregoing, the parties agree that the requirements for retention, insurance, indemnity, maintenanc e amounts, etc. shall not be duplicative and to the extent that these conditions have been met under the CFD No. 2019-1 Acquisition Agreement they shall be considered met under this Agreement without any further action, and vice versa. In addition, the parties expressly agree that any portion of the Purchase Price of a Facility or Discrete Component thereof that was not paid by the CFD No. 2019 - 1 Funding Sources may be paid by the Funding Sources under this Agreement.

5. Payment for the Facilities. The Developer hereby agrees to sell the Facilities or any Discrete Component thereof to the City or other applicable public entity or utility, and the City hereby agrees to use available Funding Sources to pay the Purchase Price thereof to the Developer, subject to the terms and conditions hereof.

a. Inspection. No payment hereunder shall be made by the City to the Developer for a Facility or Discrete Component thereof until the Facility or Discrete Component thereof has been inspected by the City or other applicable public entity or utility and found to be constructed in accordance with the approved Plans and no liens are outstanding on the Facility. For Facilities to be acquired by the City, the Developer shall request inspection using applicable City procedures. For Facilities to be acquired by other public entities or utilities, the Developer shall be responsible for obtaining such inspections and providing written evidence thereof to the Public Works Director. The Developer agrees to pay all inspectio n, permit and other similar fees of the City applicable to construction of the Facilities, and such fees are subject to reimbursement under this Agreement as part of the Actual Cost of the Facilities.

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b. Request for Payment. Any request for payment hereunder by the Developer shall be in a form substantially similar to the form attached to this Agreement as Exhibit B and shall include such supporting documentation to substantiate such request as the City may require. For any request for payment, the following shall apply:

(i) Substantiation of Actual Costs. The Developer shall provide any documentation substantiating the Actual Cost of the Facilities or any Discrete Component thereof reasonably requested by the Public Works Director, including but not limited to a review of the Actual Costs by the Engineer of Record and determination that they are consistent with the approved Plans. There shall be a presumption of reasonableness as to costs incurred under a construction contract (or change order) entered into as a result of a call for bids by the Developer (or similar procedure approved by the Public Works Director), provided that no extraordinary limitations or requirements (such as a short time frame) are imposed by the Developer on the performance of such contracts. For any Facility to be acquired by a public entity or utility other than the City, the Developer shall provide written evidence of the approval of such cost substantiation and approval of such Facility from such entity or utility when requesting payment. Any Facility or Discrete Component constructed in accordance with the approved Plans will be presumed to have a value equal to its Actual Cost.

(ii) Payment Requests. In order to receive the Purchase Price for a completed Facility or Discrete Component, inspection thereof under Section 5(a) shall have been made and the Developer shall deliver to the Public Works Director:
(i) a Payment Request for such Facility or Discrete Component, together with all supporting documentation required by this Agreement to be included therewith, and (ii) if payment is requested for a completed Facility (as opposed to any Discrete Component other than the Final Discrete Component), (a) if the property on which the Facility is located is not owned by the City (or other applicable public agency that will own the Facility) at the time of the request, a copy of the recorded documents conveying to the City (or other applicable public agency that will own the Facility) Acceptable Title to the real property on, in or over which such Facility is located, as described in Section 6 hereof, (b) if one is recorded, a copy of the recorded notice of completion of such Facility (for a Facility or the Final Discrete Component only, if applicable), (c) to the extent paid for with the proceeds of the Bonds, an assignment to the CFD of any reimbursements that may be payable with respect to the Facility, such as public or private utility reimbursements, and (d) an assignment of the warranties and guaranties for such Facility, as described in Section 6 hereof, in a form acceptable to the City. For a Payment Request for a Discrete Component (other than the Final Discrete Component), none of the items Packet Page 493 of 765Attachment 1 Page 15 of 37

in subsection (ii) in the preceding sentence are required in order to approve the Payment Request for such Discrete Component.

c. Conditions for Acceptance. The City shall not be obligated to pay the Purchase Price of any Facility or Discrete Component until the Facility or Discrete Component is constructed and the processing requirements of this Section 5 for such Facility or Discrete Component have occurred. The Developer acknowledges that the Discrete Components have been identified for payment purposes only, and that the City shall not accept a Facility of which a Discrete Component is a part until the entire Facility has been completed. The City and Developer acknowledge that the Discrete Components do not have to be accepted by the City or applicable public entity or utility designated by the City as a condition precedent to the payment of the Purchase Price therefor, but any such payment shall not be made until the Discrete Component has been constructed in accordance with the Plans therefor and, in the case of a segment that is not a discrete component of a Facility th e Actual Cost of which exceeds One Million Dollars ($1,000,000), is functional and capable of serviceable use for its intended purpose.

In any event, the City shall not be obligated to pay the Purchase Price for any Facility or Discrete Component except from the Funding Sources.

d. Purchase Price. The Purchase Price shall be calculated by the Engineer of Record using the criteria of Sections 5(a)-(c) above, and submitted to the Public Works Director for final determination. The Purchase Price shall include the substantiated Actual Costs related to the Facilities (or Discrete Component thereof) or each of them. The Purchase Price paid hereunder for any Facility or Discrete Component thereof may be paid in any number of installments as Funding Sources become available. The Purchase Price paid hereunder for any Facility or Discrete Component shall constitute payment in full for such Facility or Discrete Component, including, without limitation, payment for all labor, materials, equipment, tools and services used or incorporated in the work, supervision, administration, overhead, expenses and any and all other things required, furnished or incurred for completion of such Facility or Discrete Component, including professional costs incurred by the City associated with such Facility or Discrete Component, such as engineering, legal, accounting, inspection, construction staking, materials testing and similar professional services. To the extent the City’s costs, as applicable, have not previously been reimbursed by the Developer, the Developer and the City shall cooperate in submitting an invoice to the Fiscal Agent for the direct payment of such costs to the City. The estimates of the Purchase Price provided in Exhibit A are estimates only, and the City acknowledges that the Purchase Price paid for such Facility or Discrete Component hereunder is not bound by such estimates.

e. Payments to the Developer. The Developer may request in writing a payment of the Purchase Price of any Facility or Discrete Component thereof as described in Exhibit A hereto subject to the following:

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(i) Compliance with Conditions. The Developer shall first comply with Subsections 5 (a) through (c) above and shall have demonstrated the ability to comply with Section 6 below, all to the satisfaction of the Public Works Director.

(ii) Source of Payments. The City and the Developer expect the Purchase Price, in some cases, may be partially from Bond proceeds and partially from other available Funding Sources.

(iii) Retainage. From each payment requested, a retainage equal to ten percent (10%) of the Purchase Price shall be held by the City in the Improvement Fund for the cost of any Facility or Discrete Component thereof being acquired by the City pending final completion and acceptance of the related Facility. Subject to the availability of moneys in the Improvement Fund, any such retention will be released to the Developer upon final completion and acceptance of the related Facility and the expiration of a maintenance period consistent with applicable City policy thereafter. However, no such retainage shall be required if the Developer provides a completion bond that is satisfactory to the City for this purpose. Unless otherwise provided in writing, there shall be no such retainage required for Facilities or Discrete Components thereof to be acquired by other public entities or utilities. In lieu of such retainage, the Developer shall at any time have the option of providing the City with either a completion bond, letter of credit or other guaranty in form and substance satisfactory to the Public Works Director and the City’s Director of Finance, upon receipt of which the City shall promptly release such retainage.

As of the Acceptance Date of a Facility or the inspection and approval of a Discrete Component, the completion bond provided by the Developer for such Facility or Discrete Component shall be reduced in accordance with the City’s standard requirements for subdivision improvements and shall serve as a completion bond to guarantee that such Facility or Discrete Component will be free from defects due to faulty workmanship or materials for the period required by the City’s standard requirements for subdivision improvements, or the Developer may elect to provide a new completion bond in such an amount. As of the Acceptance Date of a Facility, the Developer shall provide a completion bond to guarantee that such Facility will be free from defects due to faulty workmanship or materials for the period required by the City’s standard requirements for subdivision improvements, which completion bond shall Packet Page 495 of 765Attachment 1 Page 17 of 37

be in the amount required by the City’s standard requirements for subdivision improvements.

(iv) Requests for Payment. Any request for payment by the Developer shall be made to the Public Works Director in the form attached to this Agreement as Exhibit B and include the supporting documentation herein specified. Within 30 calendar days of receipt of any Payment Request, the Public Works Director shall review such request and advise the Developer in writing of denial, in whole or in part, setting forth the reasons for denial. The Developer shall be entitled to resubmit any request or portion thereof so denied if it is able to address the reasons for the denial. If the request is neither denied or approved by the Public Works Director or his/her designee within such 30 day period, the Developer shall send a copy of the request by overnight mail to the Public Works Director and Director of Finance. Failure of the Public Works Director to deny the second request within 30 calendar days from receipt shall constitute approval of the request, subject to applicable law, including, but not limited to, the Act. Unless otherwise agreed to by the City, no more than two (2) Payment Requests shall be submitted to the Public Works Director in any calendar month.

(v) Payment by the City. The City shall cause payment to be made to the Developer pursuant to the applicable provisions of the Fiscal Agent Agreement or the Remaining Facilities Fund within 30 calendar days after receipt of any request that is not denied. The City may make any payment jointly to the Developer and any mortgagee or trust deed beneficiary, contractor or supplier of materials, as their interests may appear, or solely to any such third party, if the Developer so requests the same in writing or as the City otherwise determines such joint or third party payment is necessary to obtain lien releases. If there are insufficient Funding Sources to pay the full amount of a payment request, then the City shall pay as much of the amount on the payment request as there are Funding Sources available, and the payment of the balance of the payment request shall be deferred until there are sufficient Funding Sources available to the remaining balance of the payment request. Promptly following the availability of Funding Sources, the City shall, from time to time and in as many installments as necessary, pay the remaining balance of the payment request. Payment requests may be paid (i) in any number of installments as Funding Sources become available and (ii) irrespective of the length of time of such deferral of payment.

(vi) Allocation of Costs. If Developer incurs costs that (1) apply to more than one Facility or Discrete Component (e.g., soft costs) or (2) apply to both Facilities or Discrete Components and improvements other than the Facilities or Discrete Components (e.g., grading), Developer shall allocate, or cause the Packet Page 496 of 765Attachment 1 Page 18 of 37

contractor to reasonably allocate, such costs between the F acilities or Discrete Components (in the case of clause (1)) or between the Facilities or Discrete Components and the improvements other than the Facilities or Discrete Components (in the case of clause (2)) (the “Developer Allocation”). The Developer Allocation shall be presumed to be reasonable and shall be accepted for all purposes of this Agreement unless the City notifies Developer of its disapproval of the allocation within the period specified in Section 65(e)(iv) above.

If the City has disapproved the Developer Allocation, then the City and Developer shall promptly allocate such costs, on a reasonable basis, between the Facilities or Discrete Components (in the case of clause (1)) or between the Facilities or Discrete Components and the improvements other than the Facilities or Discrete Components (in the case of clause (2)) (the “Agreed-Upon Allocation”). Based on the Developer Allocation or the Agreed-Upon Allocation, if applicable, the City shall include the costs allocated to a specific Facility or Discrete Component as part of the Actual Costs of such Facility or Discrete Component when such Facility or Discrete Component is subject to a Payment Request.

(vii) Expectations of the Parties. The City and Developer understand and agree that (i) Developer will be constructing Facilities or Discrete Components prior to the availability of Funding Sources that will be used to pay for such Facilities or Discrete Components, (ii) the City or the other public agencies or entities designated by the City that will own and operate such Facilities or Discrete Components may be inspecting such Facilities or Discrete Components and processing and completing Payment Requests for the payment on such Facilities or Discrete Components with knowledge that there may be insufficient Funding Sources available at such time, (iii) the Facilities or Discrete Components may be conveyed to and accepted by the City or other local public agency or utility that will own and operate such Facilities or Discrete Components when there are insufficient Funding Sources to pay the Purchase Prices of such Facilities or Discrete Components, and (iv) in any such case, the payment of any approved Payment Requests for the Purchase Prices of such Facilities or Discrete Components will be deferred until there are sufficient Funding Sources available to pay the Purchase Prices of such Facilities or Discrete Components, at which time the City will make such payments in accordance with this Agreement. At all times, Developer will be constructing such Facilities or Discrete Components with the expectation that the Purchase Prices for such Facilities or Discrete Components will be paid solely from the Funding Sources. The conveyance of Facilities or Discrete Components to the City or a local agency or utility designated by the City that will own and operate such Facilities or Discrete Components prior to receipt of the Purchase Prices for such Facilities or Discrete Components shall not be Packet Page 497 of 765Attachment 1 Page 19 of 37

construed as a dedication or gift, or a waiver of the payment of the Purchase Prices, or any part thereof, for such Facilities or Discrete Components.

(viii) Withholding Payments. The City shall be entitled, but shall not be required, to withhold any payment hereunder for a Facility or Discrete Component if the Developer is delinquent in the payment of property taxes, other special assessments, or special taxes levied in the CFD, or fails to provide non-proprietary information requested by City for any proposed sale of Bonds or continuing disclosure undertaking.

The City shall be entitled to withhold any payment hereunder for a Facility or Discrete Component that is the subject of a Payment Request until the City is satisfied that any and all claims for labor and materials have been paid by the Developer for the Facility or Discrete Component that is the subject of a Payment Request, or conditional lien releases have been provided by the Developer for such Facility or Discrete Component. The City may waive this limitation upon the provision by the Developer of sureties, undertakings, securities and/or bonds of the Developer or appropriate contractors or subcontractors and deemed satisfactory by the Public Works Director to assure payment of such claims.

The City shall be entitled to withhold payment for any Facility or the Final Discrete Component of any such Facility hereunder to be owned by the City until:
(i) the Public Works Director determines that the Facility is ready for its intended use, (ii) the Acceptance Date for the Facility has occurred and the requirements of Section 6, if applicable to such Facility, have been satisfied, (iii) a notice of completion executed by the Developer as an owner pursuant to Section 8182 of the Civil Code, reciting the name and address of the City as an owner of an interest as a vendee under a contract of purchase pursuant to Section 8182 of the Civil Code, and in a form acceptable to the Public Works Director, has been recorded for the Facility and (iv) general lien releases conditioned solely upon payment from the Funding Sources to be used to acquire such Facility or Final Discrete Component have been submitted to the Public Works Director for the Facility. The City shall be entitled to withhold payment for any Facility, or Final Discrete Component thereof, to be owned by other public entities or utilities until the Developer provides the Public Works Director with evidence that the public entity or utility designated by the City has accepted dedication of, or title to, the Facility.

If the Public Works Director determines that a Facility is not ready for intended use under (i) above, the Public Works Director shall so notify the Developer as soon as reasonably practicable in writing specifying the reason(s) therefor.

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Nothing in this Agreement shall be deemed to prohibit the Developer from contesting in good faith the validity or amount of any mechanics or materialmen’s lien nor limit the remedies available to the Developer with respect thereto so long as such delay in performance shall not subject the Facilities or any D iscrete Component thereof to foreclosure, forfeiture or sale.

(ix) Nonconforming Work. If any of the work done or materials furnished for a Facility or Discrete Component are found by the Public Works Director to be defective or not in accordance with the applicable Plans, then (A) (i) if such finding is made prior to payment for the Purchase Price of such Facility or Discrete Component hereunder, the City may withhold payment therefor until such defect or nonconformance is corrected to the satisfaction of the Public Works Director and (ii) if such finding is made after payment of the Purchase Price of such Facility or Discrete Component, but prior to the expiration of the applicable warranty period, the City and the Developer shall act in accordance with Section 6(d) hereof.

6. Ownership and Transfer of the Facilities; Maintenance; Warranties. Any of the Facilities to be owned by public entities or utilities other than the City shall be conveyed in accordance with the entity’s or utility’s policies and procedures and the Developer shall provide the City with written evidence of such compliance prior to the payment of the Purchase Price for any such Facility. For the Facilities to be owned by the City, the following applies:

a. Land. For purposes of this Agreement, the term “Land” includes fee simple title or such lesser interests (including easement and/or rights of way or an irrevocable offer of dedication of the real property with interests therein) as are required and approved by the City and are included in the description of the Facilities to be acquired. The Developer agrees to cause the owners of real property in the CFD to execute and deliver to the City such documents as are required to complete the transfer of land with Acceptable Title . If the Land is within the boundaries of any existing community facilities district (including the CFD), an assessment district, or other financing district, then the lien of the special taxes or assessments shall be a permitted exception to title so long as the Land, while owned by the City or other public agency, is exempt from the special tax or assessments to be levied by the community facilities district, assessment district, or other financing district. Completion of the transfer of title to land shall be accomplished prior to the payment of the Purchase Price for a Facility or Final Discrete Component and evidenced by recordation of the acceptance of thereof by the City Council or the designee thereof. Any title evidence to be delivered shall be delivered in accordance with applicable rules and regulations of the City.

b. Facilities Constructed on Private Lands. If any Facility to be acquired is located on privately-owned land, the owner thereof shall retain title to the land and the completed Facilities until acquisition under Subsection 6(a) above, which shall apply to such transfer.

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Pending the completion of such transfer, the Developer shall be responsible for maintaining the land and any Facilities in good and safe condition.

c. Facilities Constructed on City Land. If the Facilities to be acquired are on land owned by the City, the City hereby grants to the Developer a license to enter upon such land for purposes related to the construction (and maintenance pending acquisition) of the Facilities. The provisions for inspection and acceptance of such Facilities otherwise provided herein shall apply.

d. Warranties; Maintenance. The Developer shall maintain each Discrete Component in good and safe condition until the Acceptance Date of the Facility of which such Discrete Component is a part. Prior to the Acceptance Date, the Developer shall be responsible for performing any required maintenance on any completed Discrete Component or Facility.

On or before the Acceptance Date, the Developer shall assign to the City all of the Developer’s rights in any warranties, guarantees, maintenance obligations or other evidence of contingent obligations of third persons with respect to such Facility. The Developer shall maintain or cause to be maintained each Facility to be owned by the City (including the repair or replacement thereof) for a period of one year from the Acceptance Date thereof, or, alternatively, shall provide a bond reasonably acceptable in form and substance to the Public Works Director for such period and for such purpose, to insure that defects, which appear within said period will be repaired, replaced, or corrected by the Developer, at its own cost and expense, to the satisfaction of the Public Works Director. During any such one-year period, the Developer shall commence to repair, replace or correct any such defects within 30 calendar days after written notice thereof by the City to the Developer, and shall complete such repairs, replacement or correction as soon as practicable. After such one-year period, the City shall be responsible for maintaining such Facility. Any warranties, guarantees or other evidences of contingent obligations of third persons with respect to the Facilities to be acquired by the City shall be delivered to the Public Works Director as part of the transfer of title.

For purposes of this Section 6, after the City has accepted a Facility, the terms “maintain” and “maintenance” mean the repair, replacement, or correction of any defects in the Facility or Discrete Component, and shall not mean the day-to-day upkeep or correction of normal wear and tear of the Facility or Discrete Component (such as watering or weeding for landscape improvements, painting, graffiti removal, etc.).

7. Limitation of Liability; Excess Costs; Surplus in the Improvement Fund. The Developer agrees that any and all obligations of the City arising out of or related to this Agreement are special and limited obligations of the City and the City’s obligations to make any payment s hereunder are restricted entirely to the Funding Sources and from no other source. The Developer agrees to pay all costs of the Facilities it is constructing that are in excess of the Funding Sources. No City Council member, City staff member, employee or agent shall incur any Packet Page 500 of 765Attachment 1 Page 22 of 37

liability hereunder to the Developer or any other party in their individual capacities by reason of their actions hereunder or execution hereof.

If the construction and acquisition of all the Facilities listed on Exhibit A have be en completed and the Purchase Price (including any retentions described above) with respect thereto has been paid, and Funding Sources remain or become available through, among other things, the issuance of additional Bonds, the City and the Developer may designate in a supplement hereto, additional Facilities (and Discrete Components thereof) to be constructed and acquired with such remaining or additional Funding Sources; provided, however, the City shall determine the use of such funds consistent with th e terms of the Fiscal Agent Agreement.

8. Indemnification and Hold Harmless. The Developer and its successors and assigns shall assume the defense of, indemnify, protect and save harmless the City, the CFD, and the City’s Councilmembers, directors, officials, officers, employees, consultants, agents, and volunteers (each an “Indemnified Party”), and each and every one of them (including independent contractors who serve as the City’s officers or officials), from and against all actions, demands, damages, injuries, claims, losses, causes of action, liabilities, costs, or expenses of every type and description to which they may be subjected or put, whether known or unknown, existing or potential, anticipated or unanticipated, in law or equity, to proper ty or persons, including wrongful death, by reason of, or resulting or in any manner arising from or incident to, the performance by the Developer (or any of its officers, agents, servants, employees, subcontractors, materialmen, or suppliers) of its obligations under this Agreement, the construction of the Facilities (including, but not limited to, failure of the Developer to pay any amount due to any contractor hired by the Developer for the construction of any Facility and any fines or penalties arising therefrom, and all damages to property or personal injury received by reason of, or in the course of, performing work, which may be caused by any willful or negligent act or omission by the Developer or any of the Developer’s employees, or any subcontracto r), the purchase of any of the Facilities completed after the adoption of the Resolution of Formation, the nature or physical condition of any Facilities constructed or caused to be constructed by the Developer, the presence of any hazardous materials on or in any land conveyed by the Developer to the City hereunder (but excluding hazardous materials which are introduced in or on such land by an Indemnified Party or after the expiration of the period for which Developer is responsible for maintenance of the related Facility pursuant to Section 6(d) hereof), or an alleged misstatement or omission of fact certified as accurate by the developer in any written certificate relating to the Developer or its development of the property within the CFD in any official statement for the CFD or the Bonds (including, but not limited to, any statements regarding the presence of any hazardous materials or endangered species thereon or therein), including without limitation the payment of all consequential damages and attorn eys’ fees and other related costs and expenses. No provision of this Agreement shall in any way limit the extent of the Developer’s responsibility for payment of damages resulting from the operations of the Packet Page 501 of 765Attachment 1 Page 23 of 37

Developer and its contractors; provided, however, that the Developer shall not be required to indemnify an Indemnified Party as to damages resulting from the gross negligence or willful misconduct of an Indemnified Party in performing its obligations under this Agreement and provided further that the Developer shall not be liable for double indemnity due to the inclusion of indemnity obligations in this Agreement and in the CFD No. 2019-1 Acquisition Agreement.

The Developer shall defend, at the Developer’s own cost, expense and risk, any and all such aforesaid suits, actions or other legal proceedings of every kind that may be brought or instituted against the City or the CFD, or their respective Councilmembers, directors, officials, officers, employees, consultants, agents or volunteers. The Developer shall pay and satisfy any judgment, award or decree that may be rendered against City or the CFD, or their Councilmembers, directors, officials, officers, employees, consultants, volunteers or agents, in any such suit, action or other legal proceeding. The Developer shall reimburse City, the CFD, and their respective Councilmembers, directors, officials, officers, employees, consultants, agents and/or volunteers, for any and all legal expenses and costs incurred by each of them in connection therewith or in enforcing the indemnity herein provided.

The City does not, and shall not, waive any rights against the Developer which either may have by reason of the aforesaid hold harmless agreements because of the acceptance by the City, or deposit with the City by the Developer of any insurance policies described in Section 4(k). The aforesaid hold harmless agreement by the Developer shall apply to all damages and claims for damages of every kind suffered, or alleged to have been suffered by reasons of any of t he aforesaid operations of the Developer, or any subcontractor, regardless of whether or not such insurance policies are determined to be applicable to any of such damages or claims for damages.

No act by the City, the CFD, or their respective representatives in processing or accepting any plans, in releasing any bond, in inspecting or accepting any work, or of any other nature, shall in any respect relieve the Developer or anyone else from any legal responsibility, obligation or liability it might otherwise have.

The indemnification and hold harmless provisions of this Section 8 shall survive the termination of this Agreement, the completion of construction of the Facilities, and the conveyance of title thereto to the City. The Developer shall take and assume all responsibility for the work performed as part of the Facilities constructed pursuant to this Agreement.

The Developer shall bear all losses and damages directly or indirectly resulting to it, to the City, the CFD, and their respective Councilmembers, directors, officials, officers, employees, consultants, agents, and volunteers, or to others on account of the performance or character of the work, unforeseen difficulties, accidents or with respect to the Facilities for which the Developer is responsible.

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9. Representations and Covenants of the Developer.

a. Representations of the Developer. The Developer represents and warrants for the benefit of the City and the CFD as follows:

(i) Organization. The Developer is a limited liability company duly organized and validly existing under the laws of the State of Delaware, is in compliance with all applicable laws of the State of California, and has the power and authority to own its properties and assets and to carry on its business as now being conducted and as now contemplated.

(ii) Authority. The Developer has the power and authority to enter into this Agreement, and has taken all action necessary to cause this Agreement to be executed and delivered, and this Agreement has been duly and validly executed and delivered by the Developer.

(iii) Binding Obligation. This Agreement is a legal, valid and binding obligation of the Developer, enforceable against the Developer in accordance with its terms, subject to bankruptcy and other equitable principles.

(iv) Requests for Payment. The Developer represents and warrants that (i) it will not request payment from the City for the acquisition of any improvements that are not part of the Facilities, and (ii) it will diligently follow all procedures set forth in this Agreement with respect to the payment requests.

(v) Plans. The Developer represents that it has obtained or will obtain approval of the Plans for the Facilities to be acquired from the Developer hereunder from all appropriate departments of the City. The Developer further agrees that the Facilities to be acquired from the Developer hereunder have been or will be constructed in full compliance with such approved plans and specifications and any supplemental agreements (change orders) thereto, as approved in the same manner.

b. Covenants of the Developer. The Developer covenants for the benefit of the City and the CFD as follows:

(i) Financial Records. Until the date which is one year following final acceptance of the Facilities, the Developer covenants to maintain proper books of record and account for the construction of the Facilities and all costs related thereto. Such accounting books shall be maintained in accordance with generally accepted accou nting principles, and shall be available for inspection by the City or its agent at any reasonable time during regular business hours on reasonable notice.

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(ii) Prevailing Wages. The Developer covenants that, with respect to any contracts or subcontracts for the construction of the Facilities to be acquired from the Developer hereunder, it will assure complete compliance with any applicable law or regulation for the payment of prevailing wages under the California Labor Code, including any and all reporting requirements.

(iii) Compliance with Laws. The Developer shall not with knowledge commit, suffer or permit any act to be done in, upon or to the lands of the Developer in the CFD or the Facilities in violation of any law, ordinance, rule, regulation or order of any governmental authority or any covenant, condition or restriction now or hereafter affecting the lands in the CFD or the Facilities.

(iv) Land Owners. The Developer agrees that in the event that it or its Subsidiaries sells any land owned by it within the boundaries of the CFD to another builder or developer, the Developer will (i) notify the City within 30 calendar days of the sale, in writing, identifying the legal name of and mailing address for the purchaser, the applicable County Assessor’s parcel number or numbers for the land sold and the acreage of the land sold, (ii) notify the purchaser in writing prior to the closing of any such sale of the existence of this Agreement and, in general, the Developer’s rights and obliga tions hereunder with respect to the construction of and payment for the Facilities, and (iii) notify the purchaser in writing of the existence of the CFD and the special tax lien in connection therewith, and otherwise comply with any applicable provision o f Section 53341.5 of the Act.

(v) Additional Information. The Developer agrees to cooperate with all reasonable written requests for nonproprietary information by the City related to the status of construction of improvements within the CFD and the ant icipated completion dates for future improvements.

(vi) Initial Disclosure; Continuing Disclosure. The Developer agrees to provide such information about its development and its financing plan as may reasonably be requested by the City, the City’s bond counsel or disclosure counsel or a bond underwriter. The Developer and its Subsidiaries agrees to comply with all of its obligations under any continuing disclosure agreement or certificate executed by it in connection with the offering and sale of any of the Bonds.

(vii) Compliance With Applicable Law. The Developer accepts responsibility by for and shall be responsible for identification of and compliance with all applicable laws pertaining to the construction and installation of the Facilities and the contract or contracts pertaining thereto, including but not limited to such applicable laws as may be Packet Page 504 of 765Attachment 1 Page 26 of 37

contained in the California Labor Code, the California Public Contract Code, and the California Government Code. The Developer will neither seek to hold or hold the City liable for, and will hold the City harmless with respect to, any consequences of any failure by the Developer to correctly determine the applicability of any such requirements to any contract it enters into. This paragraph shall apply with respect to any enforcement action, whether public or private, and whether brought by a public enforcement agency or by private civil litigation, against the Developer, the City or the CFD, or any of them, with respect to the matters addressed by this paragraph.

10. Force Majeure. Whenever performance is required of a party hereunder, that party shall use all due diligence and take all necessary good -faith measures to perform, but if completion of performance is delayed by reasons of floods, earthquak es or other acts of God, war, civil commotion, riots, strikes, picketing or other labor disputes, damage to work in progress by casualty, or by other cause beyond the reasonable control of the party (financial inability excepted), then the specified time for performance shall be extended by the amount of the delay actually so caused.

11. Limitation. Nothing in this Agreement shall be construed as affecting the Developer’s or the City’s duty to perform their respective obligations under the Conditions of Approval and any other agreements, land use regulations, or subdivision requirements related to the property being developed by the Developer in the CFD (if any), which obligations (if any) are and shall remain independent of the Developer’s and the City’s right and obligations under this Agreement.

12. Cooperation. The City and the Developer agree to meet in good faith to resolve any differences on future matters which are not specifically covered by the Agreement.

13. General Standard of Reasonableness. Any provision of this Agreement which requires the consent, approval or acceptance of either party hereto or any of their respective employees, officers, or agents shall be deemed to require that the consent, approval, or acceptance not be unreasonably withheld or delayed, unless the provision expressly incorporates a different standard. The foregoing provision shall not apply to provisions in the Agreement which provide for decisions to be in the sole discretion of the party making the decision.

14. Audit. The Public Works Director and the Director of Finance shall have the right, during normal business hours and upon the giving of ten (10) calendar days written notice to the Developer, to review all books and records of the Developer pertaining to costs and expenses incurred by the Developer in constructing any of the Facilities and any bids taken or received for the construction thereof or materials therefor.

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15. Attorney’s Fees. In the event of the bringing of any action or suit by either p arty against the other arising out of this Agreement, the party in whose favor final judgment shall be entered shall be entitled to recover from the other party all costs and expenses of suit, including reasonable attorneys’ fees.

16. Notices. Any notice, payment or instrument required or permitted by this Agreement to be given or delivered to either party shall be deemed to have been received (a) when personally delivered, (b) when sent by electronic mail if such receipt has been confirmed or (c) one week following deposit of the same in any United States Post Office, registered or certified mail, postage prepaid, addressed as follows:

Developer: One Lake Holding LLC
2121 N. California Blvd., Suite 1010
Walnut Creek, CA 94596
Email: [email protected]

With a copy to: Robert Haight
Holland & Knight LLP
50 California Street, Suite 2800
San Francisco, CA 94111
Email: [email protected]

City or CFD: City of Fairfield
1000 Webster Street
Fairfield, CA 94533
Attn: City Manager
Email address:

Each party may change its address or addresses for delivery of notice by delivering written notice of such change of address to the other party.

17. Severability. If any part of this Agreement is held to be illegal or unenforceable by a court of competent jurisdiction, the remainder of this Agreement shall be given effect to the fullest extent reasonably possible.

18. Successors and Assigns. This Agreement shall be binding upon and inure to the benefit of the successors and assigns of the parties hereto. This Agreement may not be assigned by the Developer without the prior written consent of the City, which consent shall not be unreasonably withheld or delayed. In connection with any such con sent of the City, the City may condition its consent upon the relevant experience and acceptability of the financial condition of Packet Page 506 of 765Attachment 1 Page 28 of 37

the proposed assignee and the assignee’s express assumption of all obligations of the Developer hereunder, and upon any other factor which the City deems relevant in the circumstances. Any assignment shall be in writing and shall not be effective until approved in writing by the City.

19. Waiver. Failure by a party to insist upon the strict performance of any of the provisions of this Agreement by the other party, or the failure by a party to exercise its rights upon the default of the other party, shall not constitute a waiver of such party’s right to insist and demand strict compliance by the other party with the terms of thi s Agreement thereafter.

20. Merger. No other agreement, statement or promise made by any party or any employee, officer, or agent of any party with respect to any matters covered hereby that is not in writing and signed by all the parties in this Agreement thereafter.

21. Counterparts. This Agreement may be executed in counterparts, each of which shall be deemed an original.

22. Amendments. Amendments to this Agreement shall be made only by written instrument executed by each of the parties hereto.

23. Governing Law. The provisions of this Agreement shall be governed by the laws of the State of California applicable to contracts made and performed in the State of California.

24. Conflict. If any provision of this Agreement is in conflict with or inconsistent with any provision of the Act the provision of the Act shall control.

25. Other Agreements. The obligations of the Developer hereunder shall be those of a party hereto and not as an owner of property in the CFD. Nothing herein shal l be construed as affecting the City’s or the Developer’s rights, or duties to perform their respective obligations, under other agreements, use regulations or subdivision requirements relating to the development of the lands in the CFD. This Agreement shall not confer any additional rights, or waive any rights given, by either party hereto under any development or other agreement to which they are a party.

26. Parties in Interest. Nothing in this Agreement, expressed or implied, is intended to or shall be construed to confer upon or to give to any person or entity other than the City and the Developer any rights, remedies or claims under or by reason of this Agreement or any covenants, conditions or stipulations hereof; and all covenants, conditions, pr omises, and agreements contained in this Agreement by or on behalf of the City or the Developer shall be for the sole and exclusive benefit of the City and the Developer.

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27. Electronic Signatures.

a. The parties hereto acknowledge and agree that th is Agreement may be executed by one or more electronic means (hereinafter referred to as “Electronic Signatures”). Each party hereto agrees that Electronic Signatures provided by such party shall constitute effective execution and delivery of this Agreement by such party to all other parties to or relying on this Agreement. Each party hereto agrees that Electronic Signatures shall constitute complete and satisfactory evidence of the intent of such party to be bound by those signatures and by the terms and conditions of this Agreement as signed. Each party agrees that Electronic Signatures shall be deemed to be original signatures for all purposes.

b. Each party hereto agrees to accept Electronic Signatures provided by any and all other parties to this Agreement as (i) full and sufficient evidence of intent by such parties to be bound hereunder, (ii) effective execution and delivery of this Agreement and (iii) constituting this Agreement an original for all purposes, without the necessity for any manually signed copies to be provided, maintained or to exist for back up or for any other purpose.

c. If Electronic Signatures are used to execute this Agreement, each party hereto hereby accepts the terms of, and intends to and does sign, this Agreement by its Electronic Signature hereto.

[REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK]

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IN WITNESS WHEREOF, the parties have executed this Agreement as of the day and year first-above written.

CITY OF FAIRFIELD, for itself and on behalf of

CITY OF FAIRFIELD COMMUNITY FACILITIES
DISTRICT NO. 2023-1 (One Lake Planning
Area 5)

By:_________________________________
City Manager

ONE LAKE HOLDING LLC,
A Delaware limited liability company

By:________________________________
Name:

Title:

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EXHIBIT A

FACILITIES AND DISCRETE COMPONENTS

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EXHIBIT B

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

One Lake Holding LLC, a Delaware limited liability company (the “Developer”), hereby requests payment of the Purchase Price of the Facilities and the Discrete Components (as those terms are defined in the Acquisition Agreement, dated as of February 21, 2023 (the “Acquisition Agreement”), by and between the City of Fairfield (the “City”), for itself and on behalf of “City of Fairfield Community Facilities District No. 2023-1 (One Lake Planning Area 5)” (the “CFD”) and the Developer described in Attachment 1 hereto. Capitalized undefined terms shall have the meanings ascribed thereto in the Acquisition Agreement.

In connection with this Payment Request, the undersigned hereby represents and warrants to the CFD and the City as follows:

1. The undersigned is an authorized representative of the Developer, qualified to execute this request for payment on behalf of the Developer and knowledgeable as to the matters set forth herein.

2. The Developer has submitted or submits herewith to the Public Works Director as- built drawings or similar Plans for each of the Facilities and Discrete Components described in Attachment 1, and such drawings or Plans, as applicable, are true, correct and complete representations of the Facilities and Discrete Components listed in Attachment 1.

3. Each of the Facilities and Discrete Components described in Attachment 1 has been constructed in accordance with the Plans therefor, and in accordance with all applicable City standards and the requirements of the Acquisitio n Agreement, and the Plans referenced in paragraph 2 above.

4. The Developer has submitted or submits herewith to the Public Works Director soils reports and certifications by the Engineer of Record and Surveyor with respect to each Facility or Discrete Component described in Attachment 1.

5. The true and correct Actual Cost of each of the Facilities and Discrete Components described in Attachment 1 is set forth in Attachment 1.

6. The Developer has submitted or submits herewith to the Public Works Direc tor a copy of each construction contract for each of the Facilities and Discrete Components described in Attachment 1, a copy of the bid notice for each such contract (other than for Exhibit C Facilities) and a copy of each change order applicable to each such contract, together with the written approval of each such change order by the Public Works Director of the City.

7. The Developer has submitted or submits herewith to the Public Works Director a letter from the Engineer of Record evaluating invoices, receipts, worksheets and other evidence of Packet Page 511 of 765Attachment 1 Page 33 of 37

costs for each of the Facilities and Discrete Components described in Attachment 1, which are in sufficient detail to allow the Public Works Director to verify the Actual Cost of such Facilities and Discrete Components and, if any of such invoices, receipts, worksheets or other evidence of costs include costs for facilities other than such Facilities and Discrete Components, the Developer has submitted or submits herewith to the Public Works Director a written des cription as to how the items and amounts in such invoices, receipts, worksheets and other evidence of costs have been allocated among such other Facilities and Discrete Components, together with evidence that such allocation is appropriate, correct and reasonable.

8. The Developer has submitted or submits herewith to the Public Works Director evidence that each of the invoices, receipts, worksheets and other evidence of costs referred to in the preceding paragraph, has been paid in full, which evidence is in the form of copies of cancelled checks or such other form as the Public Works Director of the City has approved in writing.

9. There has not been filed with or served upon the Developer notice of any lien, right to lien or attachment upon, or claim affecting the right to receive, the payment of the Purchase Price of each of the Facilities and Discrete Components described in Attachment 1 which has not been released or will not be released simultaneously with the payment of such obligation, other than materialmen’s or mechanics’ liens accruing by operation of law.

10. The Developer has submitted or submits herewith to the Public Works Director copies of unconditional lien releases from all contractors, subcontractors and materialmen for all work with respect to each of the Facilities and Discrete Components described in Attachment 1, together with the written approval of each such lien release by the City Attorney of the City.

11. The representations and warranties of the Developer set forth in Section 9 of the Acquisition Agreement are true and correct on and as of the date hereof with the same force and effect as if made on and as of the date hereof.

12. The Developer represents that it has satisfied the conditions specified in the Acquisition Agreement for the payment of the Purchase Price by the City.

13. The Developer represents and warrants that, as of the date hereof, there is not present on, under or in any of the Facilities and Discrete Components described in Attachment 1, or any portion thereof, any hazardous materials, except for (i) any types or amounts that do not require remediation or mitigation under federal, state or local laws, ordinances, regulations, rules or decisions, (ii) those that have been remediated or mitigated in full compliance with applicable federal, state or local laws, ordinances, regulations, rules or decisions, (iii) those with respect to which ongoing remediation or mitigation is being performed in full compliance with applicable federal, state or local laws, ordinances, regulations, rules or decisions, (iv) any types or amounts that do not present a human health risk or hazard to the public, and (iv) if such Facilities and Discrete Components described in Attachment 1 were, at the time of commencement of the acquisitio n, construction and installation of such Facilities and Discrete Components, property of the City and, from such time of commencement through and including the date hereof, remained property of Packet Page 512 of 765Attachment 1 Page 34 of 37

the City, those hazardous substances that were present on, und er or in such Facilities and Discrete Components at such time of commencement.

I hereby declare under penalty of perjury that the above representations and warranties are true and correct.

ONE LAKE HOLDING LLC,
A Delaware limited liability company

By: ____________________________
Name: __________________________
Title:____________________________

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APPROVAL BY THE PUBLIC WORKS DIRECTOR

The Public Works Director of the City of Fairfield hereby certifies as follows:

(i) One Lake Holding LLC, a Delaware limited liability company (the “Developer”), has requested payment of the Purchase Price of the Facilities and the Discrete Components described in Attachment 1 hereto.

(ii) The Public Works Director has confirmed that each of the Facilities and Discrete Components described in Attachment 1 is complete in accordance with the Plans.

(iii) The Developer’s Engineer of Record has provided documentation to the Public Works Director that the Facilities and Discrete Components installed are consistent with those presented in the documentation of Actual Costs.

(iv) The Actual Cost of the Facilities and Discrete Components described in Attachment 1 has been reviewed, verified and approved by the Public Works Director under the terms specified in Section 4 of the Acquisition Agreement. As such, Payment of the Purchase Price of each of the Facilities and Discrete Components described in Attachment 1 is hereby approved.

The City is obligated to pay the Purchase Price from Funding Sources only, and from no other funds, as set forth more completely in the Acquisition Agreement (defined below).

Capitalized undefined terms shall have the meanings ascribed thereto in the Acq uisition Agreement, dated as of February 21, 2023 (the “Acquisition Agreement”), by and between the City of Fairfield (the “City”), for itself and on behalf of “City of Fairfield Community Facilities District No. 2023-1 (One Lake Planning Area 5)” (the “CFD”) and the Developer.

Date: PUBLIC WORKS DIRECTOR,

CITY OF FAIRFIELD

By: ____________________________

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ATTACHMENT 1

Facility or
Discrete Component
Actual
Cost
Purchase
Price

Total

Packet Page 515 of 765Attachment 1 Page 37 of 37

CITY OF FAIRFIELD

RESOLUTION NO. 2023-31

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF FAIRFIELD FORMING A COMMUNITY

FACILITIES DISTRICT, AN IMPROVEMENT AREA AND A FUTURE ANNEXATION AREA,

PROVIDING FOR FUTURE IMPROVEMENT AREAS, AND DETERMINING OTHER RELATED

MATTERS

WHEREAS, on January 17, 2023, pursuant to the Mello-Roos Community Facilities Act of 1982, as amended, Chapter 2.5 of Part 1 of Division 2 of Title 5, commencing with Sect ion 53311, of the California Government Code (the “Act”), this City Council adopted a resolution entitled “A Resolution of the City Council Declaring its 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”), 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) “City of Fairfield Community Facilities District No. 2023-1 (One Lake Planning Area 5) (Future Annexation Area)” (the “Future Annexation Area”); and

WHEREAS, the Resolution of Intention, incorporating a map of the proposed boundaries of the CFD, Improvement Area No. 1, and the Future Annexation Area and stating the facilities and the services to be provided (as set forth in the list attached hereto as Exhibit A), the cost of providing such facilities and the services, and the rate and method of apportionment of the special tax to be levied within Improvement Area No. 1 to pay the principal and interest on bonds and o ther debt (as defined in the Act) proposed to be issued with respect to the CFD and Improvement Area No. 1, the cost of the facilities and the cost of the services, is on file with the City Clerk and the provisions thereof are incorporated herein by this r eference as if fully set forth herein; and

WHEREAS, on this date, this council held a noticed public hearing as required by the Act and the Resolution of Intention relative to the proposed formation of the CFD, Improvement Area No. 1 and the Future Annexation Area; and

WHEREAS, at the hearing all interested persons desiring to be heard on all matters pertaining to the formation of the CFD, Improvement Area No. 1 and the Future Annexation Area, the facilities to be provided therein, the services to be provided therein and the levy of the special tax were heard, and a full and fair hearing was held; and

WHEREAS, at the hearing, evidence was presented to this council on the matters before it, including a report prepared by the Director of Public Works (the “Report”) as to the facilities and the services to be provided through the CFD and Improvement Area No. 1 and the costs thereof,

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RES. NO. 2023-31

a copy of which is on file with the city clerk, and this council, at the conclusion of said hearing, is fully advised in the subject matter of the hearing; and

WHEREAS, written protests with respect to the formation of the CFD and Improvement Area No. 1, the furnishing of specified types of facilities and services , and the rate and method of apportionment of the special taxes have not been filed with the City Clerk by 50% or more of the registered voters, or six registered voters, whichever is more, residing within the territory of the CFD and Improvement Area No. 1 or property owners of one-half (1/2) or more of the area of land within the CFD and Improvement Area No. 1 and not exempt from the proposed special tax; and

WHEREAS, the special tax proposed to be levied in Improvement Area No. 1 to pay for the proposed facilities and services to be provided therein, as set forth in Exhibit B hereto, has not been eliminated by a written protest by 50% or more of the registered voters, or six registered voters, whichever is more, residing within the territory of Improvement Area No. 1 or the owners of one-half (1/2) or more of the area of land within Improvement Area No. 1 and not exempt from the special tax; and

WHEREAS, written protests have not been filed with the City Clerk against the proposed annexation of the Future Annexation Area to the CFD by (i) 50% or more of the registered voters, or six registered voters, whichever is more, residing in the proposed boundaries of the CFD, or (ii) 50% or more of the registered voters, or six registered voters, whichever is more , residing in the Future Annexation Area, (iii) owners of one-half or more of the area of land in the proposed CFD or (iv) owners of one-half or more of the area of land in the Future Annexation Area.

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

Section 1. Recitals Correct. The foregoing recitals are true and correct.

Section 2. No Majority Protest. The proposed formation of the CFD and Improvement Area No. 1 and special tax to be levied within the CFD have not been preclude d by majority protest pursuant to Section 53324 of the Act.

The proposed annexation of the Future Annexation Area to the CFD has not been precluded by majority protest pursuant to Section 53339.6 of the Act.

Section 3. Prior Proceedings Valid. This council took all prior proceedings in connection with the establishment of the CFD, Improvement Area No. 1, and the Future Annexation Area, and the levy of the special tax have been duly considered and are hereby found and determined to be valid and in conformity with the Act.

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RES. NO. 2023-31

Section 4. Name of CFD; Initial Improvement Area; and Future Annexation Area. The community facilities district designated “City of Fairfield Community Facilities District No. 2023 - 1 (One Lake Planning Area 5)” is hereby established pursuant to the Act.

The improvement area designated “Improvement Area No. 1 of the City of Fairfield Community Facilities District No. 2023-1 (One Lake Planning Area 5)” is hereby established pursuant to the Act.

The future annexation area designated “City of Fairfield Community Facilities District No. 2023-1 (One Lake Planning Area 5) (Future Annexation Area)” is hereby established pursuant to the Act.

Section 5. Boundaries of CFD. The boundaries of the CFD, Improvement Area No. 1, and the Future Annexation Area, as set forth in the map of the CFD heretofore recorded in the Solano County Recorder’s Office on February 7, 2023, at 3:11 p.m. in Book 26 of Maps of Assessment and Community Facilities Districts at Page 64, as Document No. 20230005079, are hereby approved, are incorporated herein by reference and shall be the boundaries of the CFD, Improvement Area No. 1 and the Future Annexation Area.

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, and without the requirement for council approval except as described in Section 7. Pursuant to Section 53329.6 of the Act, a Unanimous Approval executed by the owner of a parcel in favor of special taxes, bonded indebtedness, an appropriations limit and annexation to a community facilities district 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.

Section 53339.8 of the Mello-Roos Act provides that upon a determination by the legislative body of a community facilities district that the area proposed to be annexed is added to the existing community facilities district, the clerk of the legislative body shall record a notice of the annexation pursuant to Section 3117.5 of the Streets and Highways Code. The council hereby determines that any property for which the owner or owners execute a Unanimous Approval shall be added to the CFD, and the city clerk shall record (i) an amendment to the notice of special tax lien for the applicable improvement area of the CFD pursuant to Section 3117.5 of the Streets and Highways Code if the property is annexed to a then-existing improvement area or (ii) record a notice of special tax lien for a newly-created improvement area of the CFD pursuant to Section 3114.5 of the Streets and Highways Code.

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RES. NO. 2023-31

Pursuant to Streets and Highways Code Section 3113.5, this council may consolidate the boundaries of the CFD, Improvement Area No. 1, and all annexations into the CFD in a single map that will supersede the original boundary map for the CFD, and the council hereby directs the Director of Public Works and the Finance Director to record one or more consolidated boundary maps for the CFD at such time or times as they determine to be appropriate.

Section 6. Description of Facilities and Services. The 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 area formed to include territory that annexes to the CFD from the Future Annexation Area (each, a “Future Improvement Area”), pursuant to the Act shall consist of those items listed as facilities in Exhibit A hereto and by this reference incorporated herein (the “Facilities”). The type of public services proposed to be financed by the CFD, Improvement Area No. 1 and, when it has been annexed to the CFD, the Future Annexation Area (including any area designated therein as a Future Improvement Area), pursuant to the Act shall consist of those items shown in Exhibit A hereto and by this reference incorporated herein (the “Services”). 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 designated therein as a Future Improvement Area).

Section 7. Special Tax.

a. Except to the extent that funds are otherwise available to the City from Improvement Area No. 1 to pay for the Facilities, the Services and/or the principal and interest as it becomes due on bonds or other debt of the City issued for the CFD with respect to Improvement Area No. 1 to finance the Facilities, a special tax (the “Improvement Area No. 1 Special Tax”) sufficient to pay the costs thereof, secured by the recordation of a continuing lien against all non-exempt real property in Improvement Area No. 1, is intended to be levied annually within Improvement Area No. 1, and collected in the same manner as ordinary ad valorem property taxes or in such other manner as may be prescribed by this council.

b. The proposed rate and method of apportionment of the Special Tax among the parcels of real property within Improvement Area No. 1 (the “Rate and Method”), in sufficient detail to allow each landowner within the proposed Improvement Area No. 1 Packet Page 519 of 765Attachment 2 Page 4 of 10

RES. NO. 2023-31

to estimate the maximum amount such owner will have to pay, are shown in Exhibit B attached hereto and hereby incorporated herein.

The Improvement Area No. 1 Special Tax to finance the Facilities (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 Improvement 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 Improvement Area No. 1 by more than 10 percent.

A special tax to finance the Facilities shall not be levied in one or more Future Improvement Areas after the fiscal year identified in the rate and method for the Future Improvement Area, except that a special tax installment to finance Facilities 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 the 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 percent.

The Rate and Method for each of the Improvement Areas will be altered as described in supplements to such Rate and Method unanimously approved by the owner or owners of each parcel or parcels at the time that parcel or those parcels are annexed into such Improvement Areas.

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 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 the Improvement Areas) to increase.

Section 53350(b) of the Mello-Roos Act provides that, in connection with the annexation by unanimous approval to a community facilities district of a parcel that was included in territory proposed for annexation in the future to the community facilities district, the local agency may by resolution designate a parcel or parcels as an improvement area within the community facilities district. In compliance with Section 53350(b), the council hereby declares that the designation as an improvement area of any territory annexing to the CFD, the maximum amount of bonded indebtedness for such Packet Page 520 of 765Attachment 2 Page 5 of 10

RES. NO. 2023-31

improvement area, the rate and method of apportionment of special tax for such improvement area and the appropriations limit for the CFD shall be specified and approved in the Unanimous Approval executed by property owners i n 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 additional hearings and procedures and without the need for 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 applic able 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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RES. NO. 2023-31

(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 the formation of the CFD, then the maximum term of the sp ecial 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

c. Territory in the Future Annexation Area will be annexed into the CFD and a special tax will be levied on such territory 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 into the CFD. Except to the extent that funds are otherwise available to the CFD to pay for the Facilities, the Services and/or the principal and interest as it becomes due on bonds of the CFD issued to finance the Facilities, a Special Tax sufficient to pay the costs thereof, secured by the recordation of a continuing lien against all non-exempt real property in the Future Annexation Area, is intended to be levied annually within the Future Annexation Area, and collected in the same manner as ordinary ad valorem property taxes or in such other manner as may be prescribed by this council. 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 Improvem ent 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 allocab le 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 Improvement 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, Packet Page 522 of 765Attachment 2 Page 7 of 10

RES. NO. 2023-31

except that a higher or lower tax may be levied within a Future Improvement Area to the extent 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 City 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.

Section 8. Increased Demands. It is hereby found and determined that the Facilities and the Services are necessary to meet increased demands placed upon local agencies as the result of development occurring in the Project.

Section 9. Responsible Official. The Director of Finance of the City, 1000 Webster Street, Fairfield, California 94533, (707) 428-7629, is the officer of the City who will be responsible for preparing annually a current roll of special tax levy obligations by assessor’s parcel number and who will be responsible for estimating future special tax levies pursuant to the Act.

Section 10. Tax Lien. Upon recordation of a notice of special tax lien pursuant to Section 3114.5 of the Streets and Highways Code of California, a continuing lien to secure each levy of the special tax shall attach to all nonexempt real property in the respective Improvement Area and this lien shall continue in force and effect until the special tax obligation is prepaid and permanently satisfied and the lien canceled in accordance with law or until collection of the tax by the City ceases.

Section 11. Appropriations Limit. In accordance with the Act, the annual appropriations limit, as defined by subdivision (h) of Section 8 of Article XIII B of the California Constitution, of the CFD is hereby preliminarily established at $105,000,000, and said appropriations limit shall be submitted to the voters of Improvement Area No. 1 as hereafter provided. The proposition establishing said annual appropriations limit shall become effective if approved by the qualified electors voting thereon and shall be adjusted in accordance with the applicable provisions of the Act.

The designation as an improvement area of any territory annexing to the CFD, 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.

Section 12. Election. Pursuant to the provisions of the Act, the proposition of the levy of the Improvement Area No. 1 Special Tax and the proposition of the establishment of the appropriations limit specified above shall be submitted to the qualified electors of Improvement Area No. 1 at an election. The time, p lace and conditions of the election shall be as specified by a separate resolution of the council.

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RES. NO. 2023-31

Section 13. Acquisition Agreement. Section 53314.9 of the Act provides that, either before or after the 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 (an “Acquisition 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 the authority of the City.

The City and One Lake Holding LLC are parties to an acquisition agreement for CFD No. 2019-1, and the Acquisition Agreement for the CFD between the City and One Lake Holding LLC, in the form on file with the City Clerk, is hereby approved. Each of the city manager and the director of finance, acting alone, is hereby authorized and directed to execute the Acquisition Agreement for and on behalf of the City, and to take all actions necessary to implement the Acquisition Agreement.

Section 14. Tender. The 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 15. Effective Date. This resolution shall take effect upon its adoption.

Packet Page 524 of 765Attachment 2 Page 9 of 10

RES. NO. 2023-31

PASSED AND ADOPTED this 21st day of February, 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 525 of 765Attachment 2 Page 10 of 10

CITY OF FAIRFIELD

RESOLUTION NO. 2023-32

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF FAIRFIELD DETERMINING NECESSITY TO

INCUR BONDED INDEBTEDNESS AND OTHER DEBT

WHEREAS, on January 17, 2023, pursuant to the Mello-Roos Community Facilities Act of 1982, Chapter 2.5 of Part 1 of Division 2 of Title 5, commencing with Section 53311, of the California Government Code (the “Act”), this City Council adopted a resolution entitled “A Resolution of the City Council Declaring its Intention to Establish a Community Facilities District , One of 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”); and

WHEREAS, also in the Resolution of Intention, this council determined that it may be necessary to designate additional improvement areas in the CFD as a result of the annexation of territory from the Future Annexation Area (each, a “Future Improvement Area”); and

WHEREAS, In the Resolution of Intention to Establish, the 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, on January 17, 2023, this council also adopted a resolution entitled “Resolution of the City Council Declaring its Intention to Incur Bonded and Other Indebtedness and Determining Other Related Matters” (the “Resolution of Intention to Incur Indebtedness”) stating its intention to incur bonded indebtedness and other debt (as defined in the Act) within the boundaries of the CFD and Improvement Area No. 1 for the purpose of financing the costs of certain facilities specified in the Resolution of Intention; and

WHEREAS, this council has held a noticed public hearing as required by the Act about the determination to proceed with the formation of the CFD, Improvement Area No. 1 and the Future Annexation Area, the provision of certain public facilities and public services by the CFD and the rate and method of apportionment of the special tax to be levied within Improvement Area No. 1 to pay the cost of the facilities and the services, the principal and interest on the proposed bonded indebtedness and other debt in Improvement Area No. 1 and the administrative costs of the City relative to the CFD; and

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RES. NO. 2023- 32

WHEREAS, subsequent to the public hearing, this council adopted a resolution entitled “Resolution of the City Council Forming a Community Facilities District, an Improvement Area and a Future Annexation Area, Providing for Future Improvement Areas, and Determining Other Related Matters” (the “Resolution of Formation”); and

WHEREAS, this council has also held a noticed public hearing as required by the Act relative to the matters material to the questions set forth in the Resolution of Intention to Incur Indebtedness; and

WHEREAS, no written protests with respect to the matters material to t he questions set forth in the Resolution of Intention to Incur Indebtedness have been filed with the city clerk.

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

Section 1. Recitals. The foregoing recitals are true and correct.

Section 2. Necessity. In order to finance the costs of the Facilities, including, but not limited to, the costs of issuing and selling bonds to finance all or a portion of the Facilities and the costs of the City in establishing and administering the CFD , it is necessary for the City to incur bonded indebtedness in one or more series on behalf of Improvement Area No. 1 in an aggregate amount not to exceed $90,000,000 (the “Improvement Area No. 1 Bonded Indebtedness Limit”).

In order to finance the costs of the Facilities, including, but not limited to, the costs of issuing and selling bonds to finance all or a portion of the Facilities and the costs of the City in establishing and administering the CFD, it is necessary for the City to incur bonded indebtedness one or more series on behalf of the CFD with respect to those portions of the CFD that are not included in Improvement Area No. 1 in an aggregate amount not to exceed $15,000,000 (the “Non - Improvement Area No. 1 Bonded Indebtedness Limit”).

In order to finance the costs of the Facilities, including, but not limited to, the costs of incurring any debt to finance all or a portion of the Facilities and the costs of the City in establishing and administering the CFD, it is also necessary to incur debt (as defined in the Act), although any such debt shall not be subject to the limitations on bonded indebtedness set forth above.

Section 3. Improvement Areas Liable. The whole of Improvement Area No. 1 shall pay for the bonded indebtedness and other debt issued by the City for Improvement Area No. 1 through the levy of the special tax. The tax shall be apportioned in accordance with the formula set forth in Exhibit “B” to the Resolution of Formation.

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RES. NO. 2023- 32

The whole of any Future Improvement Area shall pay for the bonded indebtedness and other debt issued by the City for such Future Improvement Area through the levy of the special tax levied in such Future Improvement Area.

Section 4. Bonds and Other Debt. Subject to Section 2 above, bonds in the aggreg ate maximum amount of $90,000,000 and other debt (as defined in the Act) are hereby authorized for Improvement Area No. 1 subject to voter approval. The bonds may be issued in one or more series and mature and bear interest at such rate or rates, payable semiannually or in such other manner, all as this council or its designee shall determine, at the time or times of sale of such bonds and other debt; provided, however, that the interest rate or rates shall not to exceed the maximum interest rate permitted by applicable law at the time of sale of the bonds and the bonds or any series thereof shall have a maximum term of not to exceed 40 years.

In addition, debt (as defined in the Act) is hereby authorized for Improvement Area No. 1 subject to voter approval.

Subject to Section 2 above, bonds in the aggregate maximum amount of $15,000,000 are hereby authorized for the Future Improvement Areas, subject to voter approval. The bonds may be issued in one or more series and mature and bear interest at such rate or rates, payable semiannually or in such other manner, all as this City Council or its designee shall determine, at the time or times of sale of such bonds; provided, however, that the interest rate or rates shall not to exceed the maximum interest rate permitted by applicable law at the time of sale of the bonds and the bonds or any series thereof shall have a maximum term of not to exceed 40 years.

In addition, debt (as defined in the Act) is hereby authorized for Future Improvement Areas, subject to voter approval.

Section 5. Election; Unanimous Approval. The proposition of the City incurring the bonded indebtedness and other debt for Improvement Area No. 1 herein authorized shall be submitted to the qualified electors of Improvement Area No. 1 and shall be consolidated with elections on the proposition of levying special taxes within Improvement Area No. 1 and the establishment of an appropriations limit for the CFD pursuant to Section 53353.5 of the Act. The time, place , and further particulars and conditions of such election shall be as specified by separate resolution of this council.

The designation as an improvement area of any territory annexing to the CFD, the maximum amount of bonded indebtedness for such improvement area, the rate an d method of apportionment of special tax for such improvement area, and the appropriations limit for the CFD shall be specified and approved in the unanimous approval executed by property owners in connection with their annexation to the CFD, subject to the conditions set forth in the Resolution of Formation. In the event all or a portion of the Future Annexation Area is annexed as one or Packet Page 528 of 765Attachment 3 Page 3 of 4

RES. NO. 2023- 32

more Future Improvement Areas, the maximum bonded indebtedness of each such Future Improvement Area shall be identified in the unanimous approval of the property owners of the property to be annexed at the time of the annexation, as set forth in the Resolution of Formation, and 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.

Section 53329.6 of the Act provides that a Unanimous Approval 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 XIIIA and XIIIC.

Section 6. Effective Date. This Resolution shall take effect upon its adoption.

PASSED AND ADOPTED this 21st day of February, 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 529 of 765Attachment 3 Page 4 of 4

CITY OF FAIRFIELD

RESOLUTION NO. 2023-33

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF FAIRFIELD APPROVES CALLING A SPECIAL LANDOWNER ELECTION IN IMPROVEMENT AREA NO. 1 OF THE CITY OF FAIRFIELD COMMUNITY FACILITIES DISTRICT NO. 2023-1 (ONE LAKE PLANNING AREA 5)

WHEREAS, pursuant to the Mello-Roos Community Facilities Act of 1982, Chapter 2.5 of Part 1 of Division 2 of Title 5, commencing with Section 53311, of the California Government Code (the “Act”), this City Council has adopted a resolution entitled “A Resolution of the City Council Forming a Community Facilities District, an Improvement Area and a Future Annexation Area, Providing for Future Improvement, and Determining Other Related Matters” (the “Resolution of Formation”), ordering the formation of “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”), authorizing the levy of a special tax on property within Improvement Area No. 1 and preliminarily establishing an appropriations limit for the CFD; and

WHEREAS, this City Council has also adopted a resolution entitled “A Resolution of the City Council Determining the Necessity to Incur Bonded Indebtedness and Other Debt” (the “Resolution Determining Necessity”), determining the necessity to incur bonded indebtedness in the maximum aggregate principal amount of $90,000,000 and other debt (as defined in the Act) for Improvement Area No. 1 upon the security of the special tax to be levied within Improvement Area No. 1 pursuant to the Act; and

WHEREAS, pursuant to the provisions of the Resolution of Formation and the Resolution Determining Necessity, the propositions of the levy of the special tax within Improvement Area No. 1, the establishment of the appropriations limit for the CFD and the incurring of the bonded indebtedness and other debt for Improvement Area No. 1 shall be submitted to the qualified electors of Improvement Area No. 1 as required by the provisions of the Act;

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

Section 1. Issues Submitted. Pursuant to Sections 53326, 53351 and 53325.7 of the Act, the issues of the levy of the special tax, the incurring of bonded indebtedness and other debt and the establishment of the appropriations limit shall be submitted to the qualified electors (as defined below) of Improvement Area No. 1 at an election called therefor as provided below.

Section 2. Qualified Electors. This Council hereby finds that fewer than 12 persons have been registered to vote within the territory of Improvement Area No. 1 for each of the 90 days preceding the close of the public hearings heretofore conducted and concluded by this Council for the purposes of these proceedings. Accordingly, and pursuant to Section 53326 of the Act, this Council finds that, for these proceedings, the qualified electors are the landowners within Packet Page 530 of 765Attachment 4 Page 1 of 9

RES. NO. 2023-33

Improvement Area No. 1 and that the vote shall be by such landowners or their authorized representatives, each having one vote for each acre or portion thereof such landowner owns in Improvement Area No. 1 not exempt from the special tax as of the close of the public hearings.

Section 3. Conduct of Election. This Council hereby calls a special election in Improvement Area No. 1 to consider the measures described in section 1 above, which election shall be held on February 21, 2023, and the results thereof canvassed at the meeting of this Council on February 21, 2023. The City Clerk is hereby designated as the official to conduct the election and to receive all ballots until 6:00 p.m. on the election date. It is hereby acknowledged that the City Clerk has on file the Resolution of Formation, the Resolution Determining Necessity, a certified map of the boundaries of the CFD and Improvement Area No. 1, and a sufficient description to allow the City Clerk to determine the electors of Improvement Area No. 1. Pursuant to Section 53327 of the Act, the election shall be conducted by messenger or mail-delivered ballot pursuant to Section 4000 of the California Elections Code, except that Sections 53326 and 53327 of the Act shall govern for purposes of determining the date of election.

Section 4. Ballot. As authorized by Section 53353.5 of the Act, the three propositions described in section 1 above shall be combined into a single ballot measure for Improvement Area No. 1, the form of which is attached hereto as Exhibit “A” and by this reference incorporated herein and the form of ballot is hereby approved. The City Clerk is hereby authorized and directed to cause a ballot, in substantially the form of Exhibit “A,” to be delivered to each of the qualified electors of Improvement Area No. 1. Each ballot shall indicate the number of votes to be voted by the respective landowner to which the ballot pertains. Each ballot shall be accompanied by all supplies and written instructions necessary for the use and return of the ballot. The envelope to be used to return the ballot was enclosed with the ballot, had the return postage prepaid, and contained the following: (a) the name and address of the landowner, (b) a declaration, under penalty of perjury, stating that the voter is the owner of record or authorized representative of the landowner entitled to vote and is the person whose name appears on the envelope, (c) the printed name, signature and address of the voter, (d) the date of signing and place of execution of the declaration pursuant to clause (b) above, and (e) a notice that the envelope contains an official ballot and is to be opened only by the canvassing board of the election.

Section 5. Waivers. This Council hereby further finds that the provisions of Section 53326 of the Act requiring a minimum of 90 days following the adoption of the Resolution of Formation to elapse before the special election are for the protection of the qualified electors of Improvement Area No. 1. There is on file with the City Clerk a written waiver executed by all of the qualified electors of Improvement Area No. 1 allowing for a shortening of the time for the special election to expedite the process of formation of Improvement Area No. 1 and waiving any requirement for notice, analysis and arguments in connection with the election. Accordingly, this Council finds and determines that the qualified electors have been fully apprised of and have agreed to the shortened time for the election and waiver of analysis and arguments, and have thereby been Packet Page 531 of 765Attachment 4 Page 2 of 9

RES. NO. 2023-33

fully protected in these proceedings. This Council also finds and determines that the City Clerk has concurred in the shortened time for the election. Analysis and arguments with respect to the ballot measures are hereby waived, as provided in Section 53327 of the Act.

Section 6. Local Bond Measure; Accountability. The City Council hereby finds that the proposed issuance of bonds and other debt for Improvement Area No. 1 constitutes a “local bond measure” within the meaning of Sections 53410, et seq. of the California Government Code. As a result, the bond measure shall include the propositions set forth above and the following: (a) the specific purpose of the bonds and other debt shall be as set forth in the propositions; (b) any proceeds received from the sale of any bonds and other debt shall be applied only to the purposes set forth in the propositions; (c) the proceeds of any bonds and other debt shall be deposited into special accounts to be created therefor as part of the issuance of the bonds and other debt; and (d) the City shall cause a report to be prepared annually under Section 53411 of the Government Code.

Under Section 50075.1 of the Government Code, the following accountability provisions shall apply to the special taxes: (a) the provision and/or acquisition of the Facilities and the Services, the payment of debt service on the bonds and other debt and the incidental costs thereof, all as defined in the Resolution of Formation, shall constitute the specific single purpose; (b) the proceeds shall be applied only to the specific purposes identified in (a) above; (c) there shall be created special account(s) or funds(s) into which the proceeds shall be deposited; and (d) there shall be caused to be prepared an annual audit and report of the CFD.

Section 7. Effective Date. This Resolution shall take effect upon its adoption.

Packet Page 532 of 765Attachment 4 Page 3 of 9

RES. NO. 2023-33

PASSED AND ADOPTED this 21st day of February, 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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CITY OF FAIRFIELD

RESOLUTION NO. 2023-34

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF FAIRFIELD DECLARING RESULTS OF

SPECIAL ELECTION AND DIRECTING RECORDING OF NOTICE OF SPECIAL TAX LIEN

WHEREAS, pursuant to the Mello-Roos Community Facilities Act of 1982, Chapter 2.5 of Part 1 of Division 2 of Title 5, commencing with Section 53311, of the California Government Code (the “Act”), the City Council has adopted a resolution entitled “Resolution of the City Council Forming a Community Facilities District, an Improvement Area and a Future Annexation Area, Providing for Future Improvement Areas, and Determining Other Related Matters” (the “Resolution of Formation”), ordering (i) the formation of (A) “City of Fairfield Community Facilities District No. 2023-1 (One Lake Planning Area 5)” (the “CFD”), (B) “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 (C) a future annexation area for the CFD (the “Future Annexation Area”); and (ii) authorizing the levy of a special tax on property within Improvement Area No. 1 and preliminarily establishing an appropriations limit for the CFD; and

WHEREAS, the City Council has also adopted a resolut ion entitled “A Resolution of the City Council Determining the Necessity to Incur Bonded Indebtedness and Other Debt” (the “Resolution Determining Necessity”), determining the necessity to incur bonded indebtedness in the maximum aggregate principal amount of $90,000,000 and other debt (as defined in the Act) for Improvement Area No. 1 upon the security of the special tax to be levied within Improvement Area No. 1 pursuant to the Act; and

WHEREAS, under the provisions of the Resolution of Formation and the Resolution of Necessity and pursuant to “Resolution of the City Council Calling a Special Landowner Election in Improvement Area No. 1 of the City of Fairfield Community Facilities District No. 2023-1 (One Lake Planning Area 5)” (the “Election Resolution”) adopted by this City Council, the propositions of the levy of the special tax, the establishment of the appropriations limit and the incurring of the bonded indebtedness and other debt were submitted to the qualified electors of Improvement Area No. 1 as required by the provisions of the Act.

WHEREAS, pursuant to the terms of the Election Resolution, which are by this reference incorporated herein, the special election has been held in Improvement Area No. 1 and the City Clerk has on file a Canvass and Statement of Results of Election, (the “Canvass”) a copy of which is attached hereto as Exhibit A; and

WHEREAS, this City Council has reviewed the Canvass, finds it appropriate and wishes to complete its proceedings for Improvement Area No. 1.

Packet Page 539 of 765Attachment 5 Page 1 of 5

RES. NO. 2023-34

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

Section 1. Recitals. The foregoing recitals are all true and correct.

Section 2. Issues Presented. The issues presented at the special election were the levy of a special tax within Improvement Area No. 1, the incurring of a bonded indebtedness and other debt for Improvement Area No. 1, and the approval of an annual appropriations limit for the CFD, all pursuant to the Resolution of Formation and the Resolution of Necessity .

Section 3. Canvass and Issues Approved. The Council hereby approves the Canvass and finds that it shall be a permanent part of the record of its proceedings for Improvement Area No. 1.

Pursuant to the Canvass, the issues presented at the special election were approved by the qualified electors of Improvement Area No. 1 by more than two-thirds (2/3) of the votes cast at the special election.

Section 4. Proceedings Approved. Pursuant to the voter approval, the CFD and Improvement Area No. 1 is hereby declared to be fully formed, the CFD has the authority to levy the special taxes in Improvement Area No. 1, the CFD is authorized to incur the approved bonded indebtedness and other debt with respect to Improvement Area No. 1, and the CFD has the established appropriations limit, all as heretofore provided in these proceedings and in the Act.

It is hereby found that all prior proceedings and actions taken by this City Council with respect to the CFD, Improvement Area No. 1, and the Future Annexation Area were valid and in conformity with the Act.

Section 5. Notice of Tax Lien. The City Clerk is hereby directed to complete, execute and cause to be recorded in the office of the County Recorder of the County of Solano a notice of special tax lien for Improvement Area No. 1 in the form required by the Act, such recording to occur no later than fifteen (15) days following adoption by the Council of this resolution.

Section 6. Effective Date. This Resolution shall take effect upon its adoption.

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RES. NO. 2023-34

PASSED AND ADOPTED this 21st day of February, 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 541 of 765Attachment 5 Page 3 of 5

RES. NO. 2023-34

CANVASS AND STATEMENT OF RESULT OF ELECTION

CITY OF FAIRFIELD
Community Facilities District No. 2023-1
(One Lake Planning Area 5)

Improvement Area No. 1

I hereby certify that on February 21, 2023 I canvassed the returns of the election held on February 21, 2023 in Improvement Area No. 1 of the City of Fairfield Community Facilities District No. 2023-1 (One Lake Planning Area 5) (the “Improvement Area”) and the total number of ballots cast in the Improvement Area and the total number of votes cast for and against the measure are as follows and the totals as shown for and against the measure are full, true and correct:

Qualified
Landowner
Votes

Votes
Cast

YES

NO

Improvement Area No. 1 of the
City of Fairfield Community Facilities 172 ______ ____ _____ District No. 2023-1
(One Lake Planning Area 5),
Special Tax Election,
February 21, 2023

Shall the following measure be adopted: authorizing the City of Fairfield (the “City”) to (i) levy a special tax solely on lands within Improvement Area No. 1 of the City of Fairfield Community Facilities District No. 2023-1 (One Lake Planning Area 5) (“Improvement Area”) in accordance with the rate and method contained in the resolution of the City Council establishing City of Fairfield Community Facilities District No. 2023-1 (One Lake Planning Area 5) (“CFD”) and the Improvement Area (“Formation Resolution”), commencing in the City’s fiscal year 2023-24 (with annual escalation thereafter), to pay debt service on bonds and other debt, to pay for the public facilities and the public services specified in the Formation Resolution and to pay the costs of the City in administering the CFD, which special tax, if levied at the maximum rate and assuming full build -out of the properties in the Improvement Area at the time of formation, is Packet Page 542 of 765Attachment 5 Page 4 of 5

RES. NO. 2023-34

anticipated to raise $3,601,105 in fiscal year 2023-24 (with annual escalation thereafter); (ii) establish an annual appropriations limit for the CFD in the amount of $105,000,000 (subject to increase in accordance with law); and (iii) issue bonds (“bonds”) in the maximum aggregate principal amount of $90,000,000 and other debt for the CFD with respect to the Improvement Area, with interest at a rate or rates not to exceed the maximum interest rate permitted by law at the time of sale of such bonds or issuance of such debt, the proceeds of which bonds and other debt will be used to acquire and/or construct certain facilities, reimburse certain costs of the facilities paid prior to the date of issuance of the bonds, and pay for the costs of issuing the bonds and related expenses?

IN WITNESS WHEREOF, I HAVE HEREUNTO SET MY HAND this 21st day of February, 2023.

By: _______________________________
City Clerk

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CITY OF FAIRFIELD

RESOLUTION NO. 2023-35

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF FAIRFIELD AUTHORIZING THE ISSUANCE

AND SALE OF SPECIAL TAX BONDS FOR CITY OF FAIRFIELD COMMUNITY FACILITIES DISTRICT NO. 2023-1 (ONE LAKE PLANNING AREA 5) WITH RESPECT TO IMPROVEMENT AREA NO. 1 OF THE CITY OF FAIRFIELD COMMUNITY FACILITIES DISTRICT NO. 2023-1 (ONE LAKE PLANNING AREA 5), AND APPROVING AND AUTHORIZING RELATED DOCUMENTS AND ACTIONS

WHEREAS, the City Council has conducted proceedings under and pursuant to the Mello-Roos Community Facilities Act of 1982, as amended, Chapter 2.5 of Part 1 of Division 2 of Title 5 (commencing with Section 53311) of the California Government Code (the “Act”), to form (i) “City of Fairfield Community Facilities District No. 2023-1 (One Lake Planning Area 5)” (the “CFD”) and (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”), to authorize the levy of special taxes upon the land within Improvement Area No. 1, and to issue bonds and other debt (as defined in the Act) secured by said special taxes for the purpose of financing certain public improvements (the “Facilities”), all as described in those proceedings; and

WHEREAS, on October 18, 2016, by Resolution No. 2016-237, the Council adopted a Resolution adopting local goals and policies for community facilities districts (the “Goals and Policies”); and

WHEREAS, the Council now wishes to provide for the issuance of special tax bonds for the CFD with respect to Improvement Area No. 1 to finance a portion of the Facilities and related costs and expenses and wishes to direct staff to prepare and return to this Council for approval of certain documents providing for the issuance of the special tax bonds.

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

Section 1. Bonds Authorized. Pursuant to the Act and this Resolution, special tax bonds designated the “Improvement Area No. 1 of the City of Fairfield Community Facilities District No. 2023-1 (One Lake Planning Area 5) Special Tax Bonds” (the “Bonds”) are hereby authorized to be issued in one or more series in an aggregate principal amount not to exceed $90,000,000.

The Bonds shall be secured and payable from special taxes levied and collected in Improvement Area No. 1.

Section 2. Authorities Granted. City staff is hereby directed to work with the City’s consultants to prepare the documentation required for the issuance of the Bonds and to return to this council for its approval of such documentation.

Section 3. Actions Authorized. All actions heretofore taken by the officers and agents of the City with respect to the establishment of the CFD and Improvement Area No. 1 and the sale and Packet Page 544 of 765Attachment 6 Page 1 of 2

RES. NO. 2023-35

issuance of the Bonds are hereby approved, confirmed, and ratified, and the appropriate officers of the City are hereby authorized and directed to do any and all things and take any and all actions and execute any and all certificates, agreements and other documents, which they, or any of them, may deem necessary or advisable in order to accomplish the purposes of this Resolution.

Section 4. Effectiveness. This Resolution shall take effect from and after its adoption. The provisions of any previous resolutions in any way inconsistent with the provisions hereof in and for the issuance of the Bonds as herein described are hereby repealed.

PASSED AND ADOPTED this 21st day of February, 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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CITY OF FAIRFIELD

ORDINANCE NO. 2023-05

ORDINANCE OF THE CITY COUNCIL OF THE CITY OF FAIRFIELD LEVYING SPECIAL TAXES WITHIN THE CITY OF FAIRFIELD COMMUNITY FACILITIES DISTRICT NO. 2023-1 (ONE LAKE PLANNING AREA 5)

Pursuant to the Mello-Roos Community Facilities Act of 1982, as amended, section 53311, et. seq., of the California Government Code (the “Act”), on January 17, 2023, this City Council (the “City Council”) of the City of Fairfield (the “City”), adopted its Resolution No. 2023-02 entitled “Resolution of the City Council Declaring its 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 establish (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) “City of Fairfield Community Facilities District No. 2023-1 (One Lake Planning Area 5) (Future Annexation Area)” (the “Future Annexation Area”), to finance the acquisition and construction of certain public facilities and to finance certain public services; and

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

Notice was published as required by the Act relative to the intention of this City Council to form the CFD, Improvement Area No. 1 and the Future Annexation Area, to provide for certain public facilities and public services and to incur bonded indebtedness for Improvement Area No. 1; and

This City Council has held noticed public hearings as required by the Act relative to (i) the determination to proceed with the formation of the CFD, Improvement Area No. 1 and the Future Annexation Area, (ii) the rate and method of apportionment of the special tax to be levied within Improvement Area No. 1 to finance a portion of the costs of the public facilities and public services and (ii) the issuance of bonded indebtedness and other debt for Improvement Area No. 1; and

At said hearing all persons desiring to be heard on all matters pertaining to the formation of the CFD, Improvement Area No. 1 and the Future Annexation Area and the levy of said special taxes were heard, substantial evidence was presented and considered by this City Council and a full and fair hearing was held; and

Subsequent to the hearing, this City Council adopted its Resolution No. 2023-02 entitled “Resolution of the City Council Forming a Community Facilities District, an Improvement Area and a Future Annexation Area, Providing for Future Improvement Areas, and Determining Other Packet Page 546 of 765Attachment 7 Page 1 of 4

ORD. NO. 2023-05

Related Matters” (the “Resolution of Formation”), its Resolution No. 2023-32 entitled “Resolution of the City Council Determining the Necessity to Incur Bonded Indebtedness and Other Debt” (the “Resolution of Necessity”) and its Resolution No. 2023-33 entitled “Resolution of the City Council Calling a Special Landowner Election in Improvement Area No. 1 of the City of Fairfield Community Facilities District No. 2023-1 (One Lake Planning Area 5)”, which resolutions defined the public facilities to be financed by the CFD (the “Facilities”) and the public services to be financed by the CFD (the “Services”), established the CFD, Improvement Area No. 1 and the Future Annexation Area, authorized the levy of a special tax within Improvement Area No. 1, determined the necessity to incur bonded indebtedness and other debt in Improvement Area No. 1 and called an election within Improvement Area No. 1 on the propositions of incurring bonded indebtedness and other debt with respect to Improvement Area No. 1, levying a special tax within Improvement Area No. 1, and establishing an appropriations limit for the CFD, respectively; and

On February 21, 2023, a special election was held within Improvement Area No. 1 at which the eligible landowner-electors approved such propositions by the two-thirds vote required by the Act.

THE CITY COUNCIL OF THE CITY OF FAIRFIELD DOES ORDAIN AS FOLLOWS:

SECTION 1. By the passage of this Ordinance this City Council hereby authorizes and levies special taxes within Improvement Area No. 1 and on any parcels in the Future Annexation Area that are annexed into Improvement Area No. 1 or a Future Improvement Area pursuant to the Act.

With respect to Improvement Area No.1, the City shall levy the special taxes at the rate and in accordance with the formula (the “Improvement Area No. 1 Rate and Method”) set forth in the Resolution of Formation, which Resolution of Formation is by this reference incorporated herein.

With respect to Future Improvement Areas, the City shall levy the special taxes at the rate and in accordance with the formula approved by the qualified electors in the Future Improvement Areas in the manner required by the Act (each, a “Future Rate and Method;” together with the Improvement Area No. 1 Rate and Method, the “Rate and Methods”). The special taxes are hereby levied commencing in fiscal year 2023-24 and in each fiscal year thereafter for the period provided in applicable Rate and Methods, as contemplated by the Resolution of Formation and the Resolution of Necessity, and all costs of administering the CFD.

SECTION 2. The finance director of the City is hereby authorized and directed each fiscal year to determine the specific special tax rate and amount to be levied for the next ensuing fiscal year for each parcel of real property within Improvement Area No. 1 and each Future Improvement Area, in the manner and as provided in the Resolution of For mation.

Section 3. Except as provided in the Rate and Methods, properties or entities of the state, federal or local governments shall be exempt from any levy of the special taxes. Other parcels Packet Page 547 of 765Attachment 7 Page 2 of 4

ORD. NO. 2023-05

shall be exempt from the levy of the special taxes as provided in the applicable Rate and Methods.

In no event shall the special taxes be levied on any parcel within Improvement Area No. 1 or a Future Improvement Area (including any parcels in the Future Annexation Area that are annexed into the CFD) in excess of the maximum tax specified in the Resolution of Formation.

Section 4. All of the collections of the special tax shall be used as provided for in the Act and in the Resolution of Formation, including, but not limited to, the payment of principal and interest on bonds and other debt (as defined in the Act) issued by the City for the CFD with respect to Improvement Area No. 1 or a Future Improvement Area (the “Bonds”), the replenishment of the reserve fund for the Bonds, the payment of the costs of the Facilities and the Services, the payment of the costs of the City in administering the CFD, and the costs of collecting and administering the special tax.

Section 5. With respect to each Improvement Area, the special taxes shall be collected in the same manner as ordinary ad valorem taxes are collected and shall have the same lien priority, and be subject to the same penalties and the same procedure and sale in cases of delinquency as provided for ad valorem taxes; provided, however, that this City Council may provide for other appropriate methods of collection by resolutions of this City Council. In addition, the provisions of Section 53356.1 of the Act shall apply to delinquent special tax payments. The city manager (or designee) of the City is hereby au thorized and directed to provide all necessary information to the auditor/tax collector of the County of Solano in order to effect proper billing and collection of the special tax, so that the special tax shall be included on the secured property tax roll of the County of Solano for fiscal year 2023-24 and for each fiscal year thereafter until the Bonds are paid in full or such longer period of time provided in the Rate and Methods.

Section 6. If for any reason any portion of this Ordinance is found to be invalid, or if the special tax is found inapplicable to any particular parcel within Improvement Area No. 1 or a Future Improvement Area, by a court of competent jurisdiction, the balance of this Ordinance and the application of the special tax to the remaining parcels within Improvement Area No. 1 or a Future Improvement Area (including any parcels in the Future Annexation Area that are annexed into the CFD) shall not be affected.

Section 7. The mayor shall sign this Ordinance and the city clerk shall cause the same to be published within 15 days after its passage at least once in a newspaper of general circulation published and circulated in the City.

SECTION 8. This Ordinance shall be effective 30 days following its adoption by the City Council.

A summary of this Ordinance shall, within 15 days after passage, be published in accordance with Section 36933 of the Government Code of the State of California with the names of the City Councilmembers voting for and against it.

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ORD. NO. 2023-05

INTRODUCED at a regular meeting of the City Council of the City of Fairfield on the 21st day of February, 2023, and

PASSED AND ADOPTED this ___ day of ______, 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: 15.

AGENDA REPORT
DATE:February 21, 2023
TO:Mayor and City Council
FROM:David Gassaway, City Manager
SUBJECT:Public Hearing; and
Resolution 2023­36 of the City Council of the City of Fairfield Upholding the Planning Commission’s Decision and Approving a Minor Development Review (MD2021­011) and Use Permit (UP2021­002) for the Development of a Recreational Vehicle Storage Facility, with the Capacity for 138 Vehicles and Solar Carports on a ±4.21­Acre Parcel at 490 Edison Court (APN: 0180­130­110)
RECOMMENDED ACTION
Hold public hearing and adopt resolution.

STATEMENT OF ISSUE
The Fairfield Zoning Ordinance allows any party aggrieved or affected by a decision or determination by the Planning Commission to file an appeal within 14 business days following the commission’s decision. When an appeal has been filed, the community development director shall schedule the matter for consideration by the City Council within 45 days of the appeal submittal.

On October 26, 2022, the commission passed Resolution PC2022­12 regarding the Edison RV Storage project. On December 29, 2023, the project applicant filed an appeal to the Community Development Department. In accordance with Zoning Ordinance Section 25.44.2 Appeal Filing, the appeal was submitted beyond the proper filing date. Despite the untimeliness of the appeal filing, staff and legal counsel recommends that the council hear the appeal and allow the applicant to exhaust all their remedies for action. It should be noted that this recommendation is due to the unusual circumstance of an inconsistent commission agenda for the October 26, 2022, meeting.

Upon reviewing the appeal, staff recommends that the council upholds the decision of the commission to approve the project subject to the development conditions of approval, as attached in Exhibits A and B.

DISCUSSION

1. Project Description:The project proposal is a recreational vehicle (RV) storage facility with Packet Page 557 of 765

Agenda Item No: 15.AGENDA REPORTDATE:February 21, 2023 TO:Mayor and City CouncilFROM:David Gassaway, City ManagerSUBJECT:Public Hearing; and Resolution 2023­36 of the City Council of the City of Fairfield Upholding the PlanningCommission’s Decision and Approving a Minor Development Review (MD2021­011)and Use Permit (UP2021­002) for the Development of a Recreational Vehicle StorageFacility, with the Capacity for 138 Vehicles and Solar Carports on a ±4.21­Acre Parcelat 490 Edison Court (APN: 0180­130­110)RECOMMENDED ACTIONHold public hearing and adopt resolution.STATEMENT OF ISSUEThe Fairfield Zoning Ordinance allows any party aggrieved or affected by a decision or determinationby the Planning Commission to file an appeal within 14 business days following the commission’sdecision. When an appeal has been filed, the community development director shall schedule thematter for consideration by the City Council within 45 days of the appeal submittal.On October 26, 2022, the commission passed Resolution PC2022­12 regarding the Edison RVStorage project. On December 29, 2023, the project applicant filed an appeal to the CommunityDevelopment Department. In accordance with Zoning Ordinance Section 25.44.2 Appeal Filing, theappeal was submitted beyond the proper filing date. Despite the untimeliness of the appeal filing, staffand legal counsel recommends that the council hear the appeal and allow the applicant to exhaust alltheir remedies for action. It should be noted that this recommendation is due to the unusualcircumstance of an inconsistent commission agenda for the October 26, 2022, meeting. Upon reviewing the appeal, staff recommends that the council upholds the decision of the commissionto approve the project subject to the development conditions of approval, as attached in Exhibits A andB.

DISCUSSION

1. Project Description:The project proposal is a recreational vehicle (RV) storage facility with covered carport structures and associated site utilities and infrastructure improvements. The project consists of 132 covered parking stalls and an additional six uncovered parking stalls. The project, as proposed and conditioned, meets all required City development regulations. Further project analysis can be reviewed in the attached October 12 and October 26, 2022, Commission reports.

2. Background:Minor Development Review, Conditional Use Permit, and Environmental Review applications were received by the Planning Division on April 7, 2021, for the project. The project’s environmental review was an extended process due to stormwater design challenges with the adjacent Jameson Canyon Creek. After careful consideration and coordination between City staff and the applicant team, all impacts on the Creek were avoided, and the project could proceed forward under a California Environmental Quality Act (CEQA) exemption.

On June 13, 2022, a public Zoning Administrator hearing for the project was held. The applicant team was present, and no further members of the public attended. During the hearing, the applicant raised concerns about several of the project conditions of approval. To provide more time for City staff and the applicant to discuss the conditions, the hearing was continued, and no formal action was taken. Over the next six weeks, staff coordinated with the applicant to address concerns regarding the conditions of the required trash enclosure, the Edison Court Street moratorium, the proposed stormwater system, and the proposed stormwater detention.

On June 20, 2022, City staff met with the applicant and provided clarifications on the street moratorium, stormwater systems, and stormwater detention conditions to the satisfaction of the applicant. Further discussions were had regarding the trash enclosure conditions. Specifically, the original conditions required that signage be constructed with the trash enclosure identifying 1) source­separation for recyclables, organics, and garbage; 2) tenants/customers having access to the enclosure; 3) restrictions on disposal of hazardous and electronic waste in the enclosure; and 4) contact information for Republic Services for additional waste management options. The applicant expressed concerns that the signage conditions would attract people to dump large objects and excess waste into the trash enclosure, placing an undue burden on the business.

Additionally, the applicant voiced their opinion that the business is not obligated to provide waste containers for their customers to dispose of waste. Furthermore, the applicant offered considerations that they would keep the trash enclosure locked to restrict customer access and avoid unwanted waste. To address the applicant’s concerns, staff revised the condition by removing the language regarding the disposal of hazardous and electronic waste and the contact information for Republic Services. Signage requirements regarding access to the enclosure were revised by replacing the “trash enclosure” verbiage with “trash receptacles/carts” to provide the applicant flexibility on the operations of the trash enclosure while ensuring the intent of proper waste management remained, as required by the Article VI, Chapter 9, of the Municipal Code.

Additional discussions were had on the size of the trash enclosure. The applicant provided descriptions of the business operations and records of another facility’s weekly waste generation.

Staff acknowledged this information and concurred that the project scope did not warrant the City’s standard enclosure size for “Office, Retail, Industrial and General Commercial” uses over 20,000 square feet. City staff had already significantly reduced the trash enclosure size and informed the applicant that the size requirements imposed by the conditions of approval factored in the low­intensity land use operations.

The Zoning Administrator public hearing was continued to August 1, 2022, where the modified conditions of approval were presented, public comments were received, and an approval action on the project was made by the Zoning Administrator. For reference, the hearing sign­in sheet and annotated verbal public comments made during the hearing are attached as Exhibit C and Exhibit D, respectively.

On August 23, 2022, the applicant filed an appeal of the Zoning Administrator’s decision on the Packet Page 558 of 765

Agenda Item No: 15.AGENDA REPORTDATE:February 21, 2023 TO:Mayor and City CouncilFROM:David Gassaway, City ManagerSUBJECT:Public Hearing; and Resolution 2023­36 of the City Council of the City of Fairfield Upholding the PlanningCommission’s Decision and Approving a Minor Development Review (MD2021­011)and Use Permit (UP2021­002) for the Development of a Recreational Vehicle StorageFacility, with the Capacity for 138 Vehicles and Solar Carports on a ±4.21­Acre Parcelat 490 Edison Court (APN: 0180­130­110)RECOMMENDED ACTIONHold public hearing and adopt resolution.STATEMENT OF ISSUEThe Fairfield Zoning Ordinance allows any party aggrieved or affected by a decision or determinationby the Planning Commission to file an appeal within 14 business days following the commission’sdecision. When an appeal has been filed, the community development director shall schedule thematter for consideration by the City Council within 45 days of the appeal submittal.On October 26, 2022, the commission passed Resolution PC2022­12 regarding the Edison RVStorage project. On December 29, 2023, the project applicant filed an appeal to the CommunityDevelopment Department. In accordance with Zoning Ordinance Section 25.44.2 Appeal Filing, theappeal was submitted beyond the proper filing date. Despite the untimeliness of the appeal filing, staffand legal counsel recommends that the council hear the appeal and allow the applicant to exhaust alltheir remedies for action. It should be noted that this recommendation is due to the unusualcircumstance of an inconsistent commission agenda for the October 26, 2022, meeting. Upon reviewing the appeal, staff recommends that the council upholds the decision of the commissionto approve the project subject to the development conditions of approval, as attached in Exhibits A andB.DISCUSSION1. Project Description:The project proposal is a recreational vehicle (RV) storage facility withcovered carport structures and associated site utilities and infrastructure improvements. Theproject consists of 132 covered parking stalls and an additional six uncovered parking stalls. Theproject, as proposed and conditioned, meets all required City development regulations. Furtherproject analysis can be reviewed in the attached October 12 and October 26, 2022, Commissionreports.2. Background:Minor Development Review, Conditional Use Permit, and Environmental Reviewapplications were received by the Planning Division on April 7, 2021, for the project. The project’senvironmental review was an extended process due to stormwater design challenges with theadjacent Jameson Canyon Creek. After careful consideration and coordination between City staffand the applicant team, all impacts on the Creek were avoided, and the project could proceedforward under a California Environmental Quality Act (CEQA) exemption.  On June 13, 2022, a public Zoning Administrator hearing for the project was held. The applicantteam was present, and no further members of the public attended. During the hearing, theapplicant raised concerns about several of the project conditions of approval. To provide moretime for City staff and the applicant to discuss the conditions, the hearing was continued, and noformal action was taken. Over the next six weeks, staff coordinated with the applicant to addressconcerns regarding the conditions of the required trash enclosure, the Edison Court Streetmoratorium, the proposed stormwater system, and the proposed stormwater detention. On June 20, 2022, City staff met with the applicant and provided clarifications on the streetmoratorium, stormwater systems, and stormwater detention conditions to the satisfaction of theapplicant. Further discussions were had regarding the trash enclosure conditions. Specifically, theoriginal conditions required that signage be constructed with the trash enclosure identifying 1)source­separation for recyclables, organics, and garbage; 2) tenants/customers having access tothe enclosure; 3) restrictions on disposal of hazardous and electronic waste in the enclosure; and4) contact information for Republic Services for additional waste management options. Theapplicant expressed concerns that the signage conditions would attract people to dump largeobjects and excess waste into the trash enclosure, placing an undue burden on the business.Additionally, the applicant voiced their opinion that the business is not obligated to provide wastecontainers for their customers to dispose of waste. Furthermore, the applicant offeredconsiderations that they would keep the trash enclosure locked to restrict customer access andavoid unwanted waste. To address the applicant’s concerns, staff revised the condition byremoving the language regarding the disposal of hazardous and electronic waste and the contactinformation for Republic Services. Signage requirements regarding access to the enclosure wererevised by replacing the “trash enclosure” verbiage with “trash receptacles/carts” to provide theapplicant flexibility on the operations of the trash enclosure while ensuring the intent of properwaste management remained, as required by the Article VI, Chapter 9, of the Municipal Code.Additional discussions were had on the size of the trash enclosure. The applicant provideddescriptions of the business operations and records of another facility’s weekly waste generation.Staff acknowledged this information and concurred that the project scope did not warrant theCity’s standard enclosure size for “Office, Retail, Industrial and General Commercial” uses over20,000 square feet. City staff had already significantly reduced the trash enclosure size andinformed the applicant that the size requirements imposed by the conditions of approval factoredin the low­intensity land use operations. The Zoning Administrator public hearing was continued to August 1, 2022, where the modifiedconditions of approval were presented, public comments were received, and an approval actionon the project was made by the Zoning Administrator. For reference, the hearing sign­in sheet andannotated verbal public comments made during the hearing are attached as Exhibit C and Exhibit D, respectively.

On August 23, 2022, the applicant filed an appeal of the Zoning Administrator’s decision on the project. The appeal addressed four conditions of approval for the project. The appellant requested the commission to reconsider conditions regarding 1) signage that states customers shall have access to waste receptacles/carts for waste disposal; 2) providing two cubic yard containers for waste and recycling within the trash enclosure; and 3/4) the City’s indemnification clause [which is conditioned in both the Minor Development Conditions of Approval and the Use Permit].

In the appeal filing and during the commission meeting of October 12, 2022, the appellant asserted that the conditioned signage would invite customers to dispose of imported waste on­ site, including potentially hazardous materials. Therefore, burdening the facility with waste management requirements beyond what is believed to be appropriate for the RV storage used by the applicant. Furthermore, the appellant stated that the signage condition is not detailed enough, in that it is subject to review and approval of the Public Works Department prior to the issuance of a Building Permit. The appellant continued the appeal justification noting that the Public Works Department’s Conditions of Development requires two cubic yards of recycling and waste bins in an 18 ft­by­9 ft enclosure. The appeal claimed that the recycling and waste bins are larger than what is needed for the facility. The appellant echoed that this condition, like the signage condition, will encourage customers to dispose of imported waste on­site and burden the facility with excess waste management responsibilities. The appellant requested that the condition be reduced to “a more reasonable requirement,” referring to a reduction in enclosure size. The appeal concluded with an assertion that the City’s indemnification clause condition is too broad when combined with the signage requirement. It, therefore, unreasonably requires the facility to assume risks imposed by the signage condition. The appeal requested that the indemnity conditions be revised to require the City to accept joint and several liabilities for any claims arising out of the disposal of hazardous waste on the site.

After a lengthy discussion, the commission made a motion to uphold the Zoning Administrator’s approval and partially grant the appeal by revising the conditions of approval to reduce the size of the trash enclosure. On October 26, 2022, the staff brought the revised Resolution PC2022­12 back to the commission for action. As previously noted, the agenda for the meeting stated the item was a public hearing, which it was not. Prior to the meeting, staff and legal counsel clarified for the appellant that the information on the agenda was inconsistent with the process. At the meeting, staff provided an opportunity for public comment on the item, during which time the appellant reiterated the basis for their appeal. After deliberation, the commission approved the revised Resolution PC2022­12.

3. Summary of Appeal to City Council:The appellant has provided a multiple­point appeal letter requesting five conditions of approval for the project to be removed or revised; 1) signage that states customers shall have access to waste receptacles/carts for waste disposal; 2) requiring the final signage design and location to be reviewed and approved by the Public Works Department; 3/4) the City’s indemnification clause [which is conditioned in both the Minor Development Conditions of Approval and the Use Permit]; and 5) construction of a 13ft by 8ft trash enclosure. The appeal documents are attached as Exhibit E.

The appeal reiterates the commission’s appeal that the signage condition will adversely affect the business by overburdening the operations with waste management responsibilities that exceed what is appropriate for RV storage use. The appellant claims that the condition is unreasonable and will encourage the dumping of imported waste, including hazardous materials. Furthermore, the appeal cites that the condition goes beyond the requirements of, and violates, Fairfield Municipal Code Section 9.230 Litter due to the facility generating little waste. The appeal concludes that the condition should be removed because there are no code regulations that require the signage, and it is more than what is necessary. In correlation to the signage condition, the appellant requests the condition for the Public Works Department to review and approve the sign’s final design and location to be removed because it is not prescriptive enough.

Packet Page 559 of 765

Agenda Item No: 15.AGENDA REPORTDATE:February 21, 2023 TO:Mayor and City CouncilFROM:David Gassaway, City ManagerSUBJECT:Public Hearing; and Resolution 2023­36 of the City Council of the City of Fairfield Upholding the PlanningCommission’s Decision and Approving a Minor Development Review (MD2021­011)and Use Permit (UP2021­002) for the Development of a Recreational Vehicle StorageFacility, with the Capacity for 138 Vehicles and Solar Carports on a ±4.21­Acre Parcelat 490 Edison Court (APN: 0180­130­110)RECOMMENDED ACTIONHold public hearing and adopt resolution.STATEMENT OF ISSUEThe Fairfield Zoning Ordinance allows any party aggrieved or affected by a decision or determinationby the Planning Commission to file an appeal within 14 business days following the commission’sdecision. When an appeal has been filed, the community development director shall schedule thematter for consideration by the City Council within 45 days of the appeal submittal.On October 26, 2022, the commission passed Resolution PC2022­12 regarding the Edison RVStorage project. On December 29, 2023, the project applicant filed an appeal to the CommunityDevelopment Department. In accordance with Zoning Ordinance Section 25.44.2 Appeal Filing, theappeal was submitted beyond the proper filing date. Despite the untimeliness of the appeal filing, staffand legal counsel recommends that the council hear the appeal and allow the applicant to exhaust alltheir remedies for action. It should be noted that this recommendation is due to the unusualcircumstance of an inconsistent commission agenda for the October 26, 2022, meeting. Upon reviewing the appeal, staff recommends that the council upholds the decision of the commissionto approve the project subject to the development conditions of approval, as attached in Exhibits A andB.DISCUSSION1. Project Description:The project proposal is a recreational vehicle (RV) storage facility withcovered carport structures and associated site utilities and infrastructure improvements. Theproject consists of 132 covered parking stalls and an additional six uncovered parking stalls. Theproject, as proposed and conditioned, meets all required City development regulations. Furtherproject analysis can be reviewed in the attached October 12 and October 26, 2022, Commissionreports.2. Background:Minor Development Review, Conditional Use Permit, and Environmental Reviewapplications were received by the Planning Division on April 7, 2021, for the project. The project’senvironmental review was an extended process due to stormwater design challenges with theadjacent Jameson Canyon Creek. After careful consideration and coordination between City staffand the applicant team, all impacts on the Creek were avoided, and the project could proceedforward under a California Environmental Quality Act (CEQA) exemption.  On June 13, 2022, a public Zoning Administrator hearing for the project was held. The applicantteam was present, and no further members of the public attended. During the hearing, theapplicant raised concerns about several of the project conditions of approval. To provide moretime for City staff and the applicant to discuss the conditions, the hearing was continued, and noformal action was taken. Over the next six weeks, staff coordinated with the applicant to addressconcerns regarding the conditions of the required trash enclosure, the Edison Court Streetmoratorium, the proposed stormwater system, and the proposed stormwater detention. On June 20, 2022, City staff met with the applicant and provided clarifications on the streetmoratorium, stormwater systems, and stormwater detention conditions to the satisfaction of theapplicant. Further discussions were had regarding the trash enclosure conditions. Specifically, theoriginal conditions required that signage be constructed with the trash enclosure identifying 1)source­separation for recyclables, organics, and garbage; 2) tenants/customers having access tothe enclosure; 3) restrictions on disposal of hazardous and electronic waste in the enclosure; and4) contact information for Republic Services for additional waste management options. Theapplicant expressed concerns that the signage conditions would attract people to dump largeobjects and excess waste into the trash enclosure, placing an undue burden on the business.Additionally, the applicant voiced their opinion that the business is not obligated to provide wastecontainers for their customers to dispose of waste. Furthermore, the applicant offeredconsiderations that they would keep the trash enclosure locked to restrict customer access andavoid unwanted waste. To address the applicant’s concerns, staff revised the condition byremoving the language regarding the disposal of hazardous and electronic waste and the contactinformation for Republic Services. Signage requirements regarding access to the enclosure wererevised by replacing the “trash enclosure” verbiage with “trash receptacles/carts” to provide theapplicant flexibility on the operations of the trash enclosure while ensuring the intent of properwaste management remained, as required by the Article VI, Chapter 9, of the Municipal Code.Additional discussions were had on the size of the trash enclosure. The applicant provideddescriptions of the business operations and records of another facility’s weekly waste generation.Staff acknowledged this information and concurred that the project scope did not warrant theCity’s standard enclosure size for “Office, Retail, Industrial and General Commercial” uses over20,000 square feet. City staff had already significantly reduced the trash enclosure size andinformed the applicant that the size requirements imposed by the conditions of approval factoredin the low­intensity land use operations. The Zoning Administrator public hearing was continued to August 1, 2022, where the modifiedconditions of approval were presented, public comments were received, and an approval actionon the project was made by the Zoning Administrator. For reference, the hearing sign­in sheet andannotated verbal public comments made during the hearing are attached as Exhibit C and ExhibitD, respectively. On August 23, 2022, the applicant filed an appeal of the Zoning Administrator’s decision on theproject. The appeal addressed four conditions of approval for the project. The appellantrequested the commission to reconsider conditions regarding 1) signage that states customersshall have access to waste receptacles/carts for waste disposal; 2) providing two cubic yardcontainers for waste and recycling within the trash enclosure; and 3/4) the City’s indemnificationclause [which is conditioned in both the Minor Development Conditions of Approval and the UsePermit].  In the appeal filing and during the commission meeting of October 12, 2022, the appellantasserted that the conditioned signage would invite customers to dispose of imported waste on­site, including potentially hazardous materials. Therefore, burdening the facility with wastemanagement requirements beyond what is believed to be appropriate for the RV storage used bythe applicant. Furthermore, the appellant stated that the signage condition is not detailed enough,in that it is subject to review and approval of the Public Works Department prior to the issuance ofa Building Permit. The appellant continued the appeal justification noting that the Public WorksDepartment’s Conditions of Development requires two cubic yards of recycling and waste bins inan 18 ft­by­9 ft enclosure. The appeal claimed that the recycling and waste bins are larger thanwhat is needed for the facility. The appellant echoed that this condition, like the signage condition,will encourage customers to dispose of imported waste on­site and burden the facility with excesswaste management responsibilities. The appellant requested that the condition be reduced to “amore reasonable requirement,” referring to a reduction in enclosure size. The appeal concludedwith an assertion that the City’s indemnification clause condition is too broad when combined withthe signage requirement. It, therefore, unreasonably requires the facility to assume risks imposedby the signage condition. The appeal requested that the indemnity conditions be revised torequire the City to accept joint and several liabilities for any claims arising out of the disposal ofhazardous waste on the site.After a lengthy discussion, the commission made a motion to uphold the Zoning Administrator’sapproval and partially grant the appeal by revising the conditions of approval to reduce the size ofthe trash enclosure. On October 26, 2022, the staff brought the revised Resolution PC2022­12back to the commission for action. As previously noted, the agenda for the meeting stated theitem was a public hearing, which it was not. Prior to the meeting, staff and legal counsel clarifiedfor the appellant that the information on the agenda was inconsistent with the process. At themeeting, staff provided an opportunity for public comment on the item, during which time theappellant reiterated the basis for their appeal. After deliberation, the commission approved therevised Resolution PC2022­12.3. Summary of Appeal to City Council:The appellant has provided a multiple­point appeal letterrequesting five conditions of approval for the project to be removed or revised; 1) signage thatstates customers shall have access to waste receptacles/carts for waste disposal; 2) requiringthe final signage design and location to be reviewed and approved by the Public WorksDepartment; 3/4) the City’s indemnification clause [which is conditioned in both the MinorDevelopment Conditions of Approval and the Use Permit]; and 5) construction of a 13ft by 8fttrash enclosure. The appeal documents are attached as Exhibit E.The appeal reiterates the commission’s appeal that the signage condition will adversely affect thebusiness by overburdening the operations with waste management responsibilities that exceedwhat is appropriate for RV storage use. The appellant claims that the condition is unreasonableand will encourage the dumping of imported waste, including hazardous materials. Furthermore,the appeal cites that the condition goes beyond the requirements of, and violates, FairfieldMunicipal Code Section 9.230 Litter due to the facility generating little waste. The appealconcludes that the condition should be removed because there are no code regulations thatrequire the signage, and it is more than what is necessary. In correlation to the signage condition, the appellant requests the condition for the Public Works Department to review and approve the sign’s final design and location to be removed because it is not prescriptive enough.

The appeal restates the assertion that the City’s indemnification clause condition is too broad when combined with the signage requirement. The appellant claims there is an increased liability risk due to the signage conditions. Should the signage conditions remain, the appellant requests the indemnity conditions be revised to require the City to accept joint and several liabilities for any claims arising out of the disposal of hazardous waste on the site.

The appeal also requests that the council remove the condition to construct a 13ft by 8ft trash enclosure, as modified by the commission. The appeal asserts that the construction of an enclosure is unreasonable and unrelated to the waste generation of the RV storage use, and that waste carts can be utilized and stored indoors in place of an enclosure.

The appeal additionally claims that the commission improperly held two hearings on the initial appeal. The appellant states that Resolution PC2022­12 should have been placed on the consent calendar for the commission’s October 26, 2022, meeting. Furthermore, the appellant notes that the appeal was placed on the agenda as a public hearing. While City staff and legal counsel noted that the appeal item was, in fact, not a public hearing, the appellant asserts that a quasi­ hearing was held.

Lastly, the appeal requests for the Use Permit to begin on the date of the council’s final decision.

The appeal letter concludes with a summary of the requested condition removals and revisions.

Additionally, the summary includes a statement that the filing of said appeal is timely in that it was submitted within 14 business days of December 7, 2022, the date the executed Resolution PC2022­12 was received by the appellant. Again, the appellant submitted their appeal letter to the City on December 29, 2022.

4. Staff Analysis of Appeal:Staff finds the appellant failed to properly file the appeal within 14 business days of the commission’s decision on October 26, 2022, as codified in Section

25.44.2.B of the Zoning Ordinance. Additionally, there is no explicit timeframe for providing written notice of the commission’s decision or the associated resolution. Therefore, there is no support for the claim that a delay in receiving the resolution would extend the appeal period.

However, due to the unusual circumstances of the agenda item describing the commissions’ decision on Resolution PC2022­12 as a public hearing for the October 26, 2022, meeting, staff accepted the appeal submittal to allow the appellant to exhaust their administrative remedies. It should be noted that although the agenda of October 26, 2022, described the resolution action as a public hearing, both legal counsel and City staff informed the appellant team before the meeting that the appeal would not undergo another public hearing. The item was listed as a scheduled matter item rather than a consent calendar item because the City’s Planning Commission does not have a consent calendar. During the commission meeting, it was noted again that the item was not subject to a public hearing. The appellant was given time to address the commission as a public comment courtesy.

While the appeal has been brought forth for a public hearing and council review, staff recommends upholding the commission’s decision because the appeal is untimely. The appellant did not submit their appeal letter until December 29, 2022, 65 days after the commission’s decision on October 26, 2022. Additionally, December 29, 2022, is fifteen business days after staff provided the written notice of the commission’s decision to the appellants in the form of the final, approved Resolution PC2022­12 on December 7, 2022. Accordingly, the appeal is untimely even if you accept the appellant’s position that the date of the written notice should be treated as the date of the commission’s decision. Should the council wish to further review the merits of the appeal, the following analysis is included to inform deliberations.

The staff has reviewed the justification for the appeal and has determined it to be unsubstantiated.

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Agenda Item No: 15.AGENDA REPORTDATE:February 21, 2023 TO:Mayor and City CouncilFROM:David Gassaway, City ManagerSUBJECT:Public Hearing; and Resolution 2023­36 of the City Council of the City of Fairfield Upholding the PlanningCommission’s Decision and Approving a Minor Development Review (MD2021­011)and Use Permit (UP2021­002) for the Development of a Recreational Vehicle StorageFacility, with the Capacity for 138 Vehicles and Solar Carports on a ±4.21­Acre Parcelat 490 Edison Court (APN: 0180­130­110)RECOMMENDED ACTIONHold public hearing and adopt resolution.STATEMENT OF ISSUEThe Fairfield Zoning Ordinance allows any party aggrieved or affected by a decision or determinationby the Planning Commission to file an appeal within 14 business days following the commission’sdecision. When an appeal has been filed, the community development director shall schedule thematter for consideration by the City Council within 45 days of the appeal submittal.On October 26, 2022, the commission passed Resolution PC2022­12 regarding the Edison RVStorage project. On December 29, 2023, the project applicant filed an appeal to the CommunityDevelopment Department. In accordance with Zoning Ordinance Section 25.44.2 Appeal Filing, theappeal was submitted beyond the proper filing date. Despite the untimeliness of the appeal filing, staffand legal counsel recommends that the council hear the appeal and allow the applicant to exhaust alltheir remedies for action. It should be noted that this recommendation is due to the unusualcircumstance of an inconsistent commission agenda for the October 26, 2022, meeting. Upon reviewing the appeal, staff recommends that the council upholds the decision of the commissionto approve the project subject to the development conditions of approval, as attached in Exhibits A andB.DISCUSSION1. Project Description:The project proposal is a recreational vehicle (RV) storage facility withcovered carport structures and associated site utilities and infrastructure improvements. Theproject consists of 132 covered parking stalls and an additional six uncovered parking stalls. Theproject, as proposed and conditioned, meets all required City development regulations. Furtherproject analysis can be reviewed in the attached October 12 and October 26, 2022, Commissionreports.2. Background:Minor Development Review, Conditional Use Permit, and Environmental Reviewapplications were received by the Planning Division on April 7, 2021, for the project. The project’senvironmental review was an extended process due to stormwater design challenges with theadjacent Jameson Canyon Creek. After careful consideration and coordination between City staffand the applicant team, all impacts on the Creek were avoided, and the project could proceedforward under a California Environmental Quality Act (CEQA) exemption.  On June 13, 2022, a public Zoning Administrator hearing for the project was held. The applicantteam was present, and no further members of the public attended. During the hearing, theapplicant raised concerns about several of the project conditions of approval. To provide moretime for City staff and the applicant to discuss the conditions, the hearing was continued, and noformal action was taken. Over the next six weeks, staff coordinated with the applicant to addressconcerns regarding the conditions of the required trash enclosure, the Edison Court Streetmoratorium, the proposed stormwater system, and the proposed stormwater detention. On June 20, 2022, City staff met with the applicant and provided clarifications on the streetmoratorium, stormwater systems, and stormwater detention conditions to the satisfaction of theapplicant. Further discussions were had regarding the trash enclosure conditions. Specifically, theoriginal conditions required that signage be constructed with the trash enclosure identifying 1)source­separation for recyclables, organics, and garbage; 2) tenants/customers having access tothe enclosure; 3) restrictions on disposal of hazardous and electronic waste in the enclosure; and4) contact information for Republic Services for additional waste management options. Theapplicant expressed concerns that the signage conditions would attract people to dump largeobjects and excess waste into the trash enclosure, placing an undue burden on the business.Additionally, the applicant voiced their opinion that the business is not obligated to provide wastecontainers for their customers to dispose of waste. Furthermore, the applicant offeredconsiderations that they would keep the trash enclosure locked to restrict customer access andavoid unwanted waste. To address the applicant’s concerns, staff revised the condition byremoving the language regarding the disposal of hazardous and electronic waste and the contactinformation for Republic Services. Signage requirements regarding access to the enclosure wererevised by replacing the “trash enclosure” verbiage with “trash receptacles/carts” to provide theapplicant flexibility on the operations of the trash enclosure while ensuring the intent of properwaste management remained, as required by the Article VI, Chapter 9, of the Municipal Code.Additional discussions were had on the size of the trash enclosure. The applicant provideddescriptions of the business operations and records of another facility’s weekly waste generation.Staff acknowledged this information and concurred that the project scope did not warrant theCity’s standard enclosure size for “Office, Retail, Industrial and General Commercial” uses over20,000 square feet. City staff had already significantly reduced the trash enclosure size andinformed the applicant that the size requirements imposed by the conditions of approval factoredin the low­intensity land use operations. The Zoning Administrator public hearing was continued to August 1, 2022, where the modifiedconditions of approval were presented, public comments were received, and an approval actionon the project was made by the Zoning Administrator. For reference, the hearing sign­in sheet andannotated verbal public comments made during the hearing are attached as Exhibit C and ExhibitD, respectively. On August 23, 2022, the applicant filed an appeal of the Zoning Administrator’s decision on theproject. The appeal addressed four conditions of approval for the project. The appellantrequested the commission to reconsider conditions regarding 1) signage that states customersshall have access to waste receptacles/carts for waste disposal; 2) providing two cubic yardcontainers for waste and recycling within the trash enclosure; and 3/4) the City’s indemnificationclause [which is conditioned in both the Minor Development Conditions of Approval and the UsePermit].  In the appeal filing and during the commission meeting of October 12, 2022, the appellantasserted that the conditioned signage would invite customers to dispose of imported waste on­site, including potentially hazardous materials. Therefore, burdening the facility with wastemanagement requirements beyond what is believed to be appropriate for the RV storage used bythe applicant. Furthermore, the appellant stated that the signage condition is not detailed enough,in that it is subject to review and approval of the Public Works Department prior to the issuance ofa Building Permit. The appellant continued the appeal justification noting that the Public WorksDepartment’s Conditions of Development requires two cubic yards of recycling and waste bins inan 18 ft­by­9 ft enclosure. The appeal claimed that the recycling and waste bins are larger thanwhat is needed for the facility. The appellant echoed that this condition, like the signage condition,will encourage customers to dispose of imported waste on­site and burden the facility with excesswaste management responsibilities. The appellant requested that the condition be reduced to “amore reasonable requirement,” referring to a reduction in enclosure size. The appeal concludedwith an assertion that the City’s indemnification clause condition is too broad when combined withthe signage requirement. It, therefore, unreasonably requires the facility to assume risks imposedby the signage condition. The appeal requested that the indemnity conditions be revised torequire the City to accept joint and several liabilities for any claims arising out of the disposal ofhazardous waste on the site.After a lengthy discussion, the commission made a motion to uphold the Zoning Administrator’sapproval and partially grant the appeal by revising the conditions of approval to reduce the size ofthe trash enclosure. On October 26, 2022, the staff brought the revised Resolution PC2022­12back to the commission for action. As previously noted, the agenda for the meeting stated theitem was a public hearing, which it was not. Prior to the meeting, staff and legal counsel clarifiedfor the appellant that the information on the agenda was inconsistent with the process. At themeeting, staff provided an opportunity for public comment on the item, during which time theappellant reiterated the basis for their appeal. After deliberation, the commission approved therevised Resolution PC2022­12.3. Summary of Appeal to City Council:The appellant has provided a multiple­point appeal letterrequesting five conditions of approval for the project to be removed or revised; 1) signage thatstates customers shall have access to waste receptacles/carts for waste disposal; 2) requiringthe final signage design and location to be reviewed and approved by the Public WorksDepartment; 3/4) the City’s indemnification clause [which is conditioned in both the MinorDevelopment Conditions of Approval and the Use Permit]; and 5) construction of a 13ft by 8fttrash enclosure. The appeal documents are attached as Exhibit E.The appeal reiterates the commission’s appeal that the signage condition will adversely affect thebusiness by overburdening the operations with waste management responsibilities that exceedwhat is appropriate for RV storage use. The appellant claims that the condition is unreasonableand will encourage the dumping of imported waste, including hazardous materials. Furthermore,the appeal cites that the condition goes beyond the requirements of, and violates, FairfieldMunicipal Code Section 9.230 Litter due to the facility generating little waste. The appealconcludes that the condition should be removed because there are no code regulations thatrequire the signage, and it is more than what is necessary. In correlation to the signage condition,the appellant requests the condition for the Public Works Department to review and approve thesign’s final design and location to be removed because it is not prescriptive enough. The appeal restates the assertion that the City’s indemnification clause condition is too broadwhen combined with the signage requirement. The appellant claims there is an increased liabilityrisk due to the signage conditions. Should the signage conditions remain, the appellant requeststhe indemnity conditions be revised to require the City to accept joint and several liabilities for anyclaims arising out of the disposal of hazardous waste on the site.The appeal also requests that the council remove the condition to construct a 13ft by 8ft trashenclosure, as modified by the commission. The appeal asserts that the construction of anenclosure is unreasonable and unrelated to the waste generation of the RV storage use, and thatwaste carts can be utilized and stored indoors in place of an enclosure. The appeal additionally claims that the commission improperly held two hearings on the initialappeal. The appellant states that Resolution PC2022­12 should have been placed on the consentcalendar for the commission’s October 26, 2022, meeting. Furthermore, the appellant notes thatthe appeal was placed on the agenda as a public hearing. While City staff and legal counselnoted that the appeal item was, in fact, not a public hearing, the appellant asserts that a quasi­hearing was held. Lastly, the appeal requests for the Use Permit to begin on the date of the council’s final decision. The appeal letter concludes with a summary of the requested condition removals and revisions.Additionally, the summary includes a statement that the filing of said appeal is timely in that it wassubmitted within 14 business days of December 7, 2022, the date the executed ResolutionPC2022­12 was received by the appellant. Again, the appellant submitted their appeal letter tothe City on December 29, 2022.4. Staff Analysis of Appeal:Staff finds the appellant failed to properly file the appeal within 14business days of the commission’s decision on October 26, 2022, as codified in Section25.44.2.B of the Zoning Ordinance. Additionally, there is no explicit timeframe for providing writtennotice of the commission’s decision or the associated resolution. Therefore, there is no supportfor the claim that a delay in receiving the resolution would extend the appeal period. However, due to the unusual circumstances of the agenda item describing the commissions’decision on Resolution PC2022­12 as a public hearing for the October 26, 2022, meeting, staffaccepted the appeal submittal to allow the appellant to exhaust their administrative remedies. Itshould be noted that although the agenda of October 26, 2022, described the resolution action asa public hearing, both legal counsel and City staff informed the appellant team before the meetingthat the appeal would not undergo another public hearing. The item was listed as a scheduledmatter item rather than a consent calendar item because the City’s Planning Commission doesnot have a consent calendar. During the commission meeting, it was noted again that the itemwas not subject to a public hearing. The appellant was given time to address the commission as apublic comment courtesy. While the appeal has been brought forth for a public hearing and council review, staffrecommends upholding the commission’s decision because the appeal is untimely. The appellantdid not submit their appeal letter until December 29, 2022, 65 days after the commission’sdecision on October 26, 2022. Additionally, December 29, 2022, is fifteen business days afterstaff provided the written notice of the commission’s decision to the appellants in the form of thefinal, approved Resolution PC2022­12 on December 7, 2022. Accordingly, the appeal is untimelyeven if you accept the appellant’s position that the date of the written notice should be treated asthe date of the commission’s decision. Should the council wish to further review the merits of the appeal, the following analysis is included to inform deliberations.

The staff has reviewed the justification for the appeal and has determined it to be unsubstantiated.

To make findings of approval for the requested Minor Development Review and Use Permit, staff must ascertain whether the project’s development or business operations will create a nuisance or be detrimental to the health, safety, morals, peace, or the general welfare of the surrounding neighborhood and the City. The conditions in question are necessary to implement the project and ensure that the operation of the RV storage facility will not be a nuisance or detrimental to the general welfare of the greater community. Furthermore, staff finds that the conditions are proportional to land use intensity and not an imposition on the applicant.

Addressing the signage condition, staff crafted the language to safeguard the availability of waste disposal to customers and ensure waste is not left uncontained on the project site. Uncontained waste would impact the facility operations, placing the responsibility to collect and dispose of waste to keep the property clean onto the business. Furthermore, if waste collection facilities are not provided on the project site, the likelihood of waste being littered onto adjacent properties and the public right­of­way are increased, which will negatively impact the surrounding community. As noted in the Background Information section of this report, staff coordinated with the appellant to revise the condition to alleviate concerns with access to the trash enclosure, hazardous and electronic waste, and Republic Services contact. The nuanced language of “trash enclosure” to “trash receptacles/cart” was imposed as the appellant shared concerns with people overfilling and dumping into the enclosure. The current condition leaves flexibility for the appellant to provide trash receptacles in a preferred location and under employee supervision, should they so choose.

The signage language is necessary to ensure customers are aware they have access to these receptacles and encourages proper waste disposal. The appellant’s concerns about customers’ disposal of hazardous materials on­site are unrelated to the signage condition imposed.

Furthermore, this concern could be alleviated with additional educational information stating that hazardous and electronic waste are not permitted on­site and that Republic Services has alternative disposal methods. However, this language was removed per the appellant’s request during the June 2022 meeting. Should hazardous or other unpermitted waste be left on­site, the business may contact Republic Services to schedule proper pick­up and disposal options. The staff has worked with the appellant to craft reasonable signage conditions that adequately address the waste disposal concerns.

The appeal also references the City’s Municipal Code Section 9.230 Litter and states that the signage condition is in conflict. Staff does not concur with this assertion, as the intent of this code section is to prevent littering. The code section states that “publicly patronized establishments and institutions shall provide, empty, and maintain adequate Containers for public deposit of Solid Waste generated by the public as a result of the patronization of such establishments.” The condition of the trash receptacles and associated signage implement this code section rather than violate it.

Not noted in the appeal but identified in the conditions and relevant for the discussion, Municipal Code Section 9.220 Recyclables and Organic Waste Generator Requirements requires all commercial/industrial businesses to be responsible for providing a basic level of recyclable and organic waste collection, including the minimum collection and delivery of waste to a resource recovery facility, such as Republic Services. Furthermore, Section 9.220 states, the business owner shall, “(E) Prominently post and maintain one or more signs where Recyclables and/or Organic Waste are collected and/or stored that set forth what materials are required to be source separated in addition to collection procedures for such materials. (F) Notify and instruct employees and tenants of applicable source separation requirements, including a list of Recyclables and/or Organic waste that are required to be source­separated for recycling.” Accordingly, the signage condition is not in conflict with the Municipal Code and supports the policy rationale behind these code sections.

Lastly, on signage, the appellant’s assertion that the signage condition improperly defers critical development details, such as location and content, is unpersuasive. The staff has made no Packet Page 561 of 765

Agenda Item No: 15.AGENDA REPORTDATE:February 21, 2023 TO:Mayor and City CouncilFROM:David Gassaway, City ManagerSUBJECT:Public Hearing; and Resolution 2023­36 of the City Council of the City of Fairfield Upholding the PlanningCommission’s Decision and Approving a Minor Development Review (MD2021­011)and Use Permit (UP2021­002) for the Development of a Recreational Vehicle StorageFacility, with the Capacity for 138 Vehicles and Solar Carports on a ±4.21­Acre Parcelat 490 Edison Court (APN: 0180­130­110)RECOMMENDED ACTIONHold public hearing and adopt resolution.STATEMENT OF ISSUEThe Fairfield Zoning Ordinance allows any party aggrieved or affected by a decision or determinationby the Planning Commission to file an appeal within 14 business days following the commission’sdecision. When an appeal has been filed, the community development director shall schedule thematter for consideration by the City Council within 45 days of the appeal submittal.On October 26, 2022, the commission passed Resolution PC2022­12 regarding the Edison RVStorage project. On December 29, 2023, the project applicant filed an appeal to the CommunityDevelopment Department. In accordance with Zoning Ordinance Section 25.44.2 Appeal Filing, theappeal was submitted beyond the proper filing date. Despite the untimeliness of the appeal filing, staffand legal counsel recommends that the council hear the appeal and allow the applicant to exhaust alltheir remedies for action. It should be noted that this recommendation is due to the unusualcircumstance of an inconsistent commission agenda for the October 26, 2022, meeting. Upon reviewing the appeal, staff recommends that the council upholds the decision of the commissionto approve the project subject to the development conditions of approval, as attached in Exhibits A andB.DISCUSSION1. Project Description:The project proposal is a recreational vehicle (RV) storage facility withcovered carport structures and associated site utilities and infrastructure improvements. Theproject consists of 132 covered parking stalls and an additional six uncovered parking stalls. Theproject, as proposed and conditioned, meets all required City development regulations. Furtherproject analysis can be reviewed in the attached October 12 and October 26, 2022, Commissionreports.2. Background:Minor Development Review, Conditional Use Permit, and Environmental Reviewapplications were received by the Planning Division on April 7, 2021, for the project. The project’senvironmental review was an extended process due to stormwater design challenges with theadjacent Jameson Canyon Creek. After careful consideration and coordination between City staffand the applicant team, all impacts on the Creek were avoided, and the project could proceedforward under a California Environmental Quality Act (CEQA) exemption.  On June 13, 2022, a public Zoning Administrator hearing for the project was held. The applicantteam was present, and no further members of the public attended. During the hearing, theapplicant raised concerns about several of the project conditions of approval. To provide moretime for City staff and the applicant to discuss the conditions, the hearing was continued, and noformal action was taken. Over the next six weeks, staff coordinated with the applicant to addressconcerns regarding the conditions of the required trash enclosure, the Edison Court Streetmoratorium, the proposed stormwater system, and the proposed stormwater detention. On June 20, 2022, City staff met with the applicant and provided clarifications on the streetmoratorium, stormwater systems, and stormwater detention conditions to the satisfaction of theapplicant. Further discussions were had regarding the trash enclosure conditions. Specifically, theoriginal conditions required that signage be constructed with the trash enclosure identifying 1)source­separation for recyclables, organics, and garbage; 2) tenants/customers having access tothe enclosure; 3) restrictions on disposal of hazardous and electronic waste in the enclosure; and4) contact information for Republic Services for additional waste management options. Theapplicant expressed concerns that the signage conditions would attract people to dump largeobjects and excess waste into the trash enclosure, placing an undue burden on the business.Additionally, the applicant voiced their opinion that the business is not obligated to provide wastecontainers for their customers to dispose of waste. Furthermore, the applicant offeredconsiderations that they would keep the trash enclosure locked to restrict customer access andavoid unwanted waste. To address the applicant’s concerns, staff revised the condition byremoving the language regarding the disposal of hazardous and electronic waste and the contactinformation for Republic Services. Signage requirements regarding access to the enclosure wererevised by replacing the “trash enclosure” verbiage with “trash receptacles/carts” to provide theapplicant flexibility on the operations of the trash enclosure while ensuring the intent of properwaste management remained, as required by the Article VI, Chapter 9, of the Municipal Code.Additional discussions were had on the size of the trash enclosure. The applicant provideddescriptions of the business operations and records of another facility’s weekly waste generation.Staff acknowledged this information and concurred that the project scope did not warrant theCity’s standard enclosure size for “Office, Retail, Industrial and General Commercial” uses over20,000 square feet. City staff had already significantly reduced the trash enclosure size andinformed the applicant that the size requirements imposed by the conditions of approval factoredin the low­intensity land use operations. The Zoning Administrator public hearing was continued to August 1, 2022, where the modifiedconditions of approval were presented, public comments were received, and an approval actionon the project was made by the Zoning Administrator. For reference, the hearing sign­in sheet andannotated verbal public comments made during the hearing are attached as Exhibit C and ExhibitD, respectively. On August 23, 2022, the applicant filed an appeal of the Zoning Administrator’s decision on theproject. The appeal addressed four conditions of approval for the project. The appellantrequested the commission to reconsider conditions regarding 1) signage that states customersshall have access to waste receptacles/carts for waste disposal; 2) providing two cubic yardcontainers for waste and recycling within the trash enclosure; and 3/4) the City’s indemnificationclause [which is conditioned in both the Minor Development Conditions of Approval and the UsePermit].  In the appeal filing and during the commission meeting of October 12, 2022, the appellantasserted that the conditioned signage would invite customers to dispose of imported waste on­site, including potentially hazardous materials. Therefore, burdening the facility with wastemanagement requirements beyond what is believed to be appropriate for the RV storage used bythe applicant. Furthermore, the appellant stated that the signage condition is not detailed enough,in that it is subject to review and approval of the Public Works Department prior to the issuance ofa Building Permit. The appellant continued the appeal justification noting that the Public WorksDepartment’s Conditions of Development requires two cubic yards of recycling and waste bins inan 18 ft­by­9 ft enclosure. The appeal claimed that the recycling and waste bins are larger thanwhat is needed for the facility. The appellant echoed that this condition, like the signage condition,will encourage customers to dispose of imported waste on­site and burden the facility with excesswaste management responsibilities. The appellant requested that the condition be reduced to “amore reasonable requirement,” referring to a reduction in enclosure size. The appeal concludedwith an assertion that the City’s indemnification clause condition is too broad when combined withthe signage requirement. It, therefore, unreasonably requires the facility to assume risks imposedby the signage condition. The appeal requested that the indemnity conditions be revised torequire the City to accept joint and several liabilities for any claims arising out of the disposal ofhazardous waste on the site.After a lengthy discussion, the commission made a motion to uphold the Zoning Administrator’sapproval and partially grant the appeal by revising the conditions of approval to reduce the size ofthe trash enclosure. On October 26, 2022, the staff brought the revised Resolution PC2022­12back to the commission for action. As previously noted, the agenda for the meeting stated theitem was a public hearing, which it was not. Prior to the meeting, staff and legal counsel clarifiedfor the appellant that the information on the agenda was inconsistent with the process. At themeeting, staff provided an opportunity for public comment on the item, during which time theappellant reiterated the basis for their appeal. After deliberation, the commission approved therevised Resolution PC2022­12.3. Summary of Appeal to City Council:The appellant has provided a multiple­point appeal letterrequesting five conditions of approval for the project to be removed or revised; 1) signage thatstates customers shall have access to waste receptacles/carts for waste disposal; 2) requiringthe final signage design and location to be reviewed and approved by the Public WorksDepartment; 3/4) the City’s indemnification clause [which is conditioned in both the MinorDevelopment Conditions of Approval and the Use Permit]; and 5) construction of a 13ft by 8fttrash enclosure. The appeal documents are attached as Exhibit E.The appeal reiterates the commission’s appeal that the signage condition will adversely affect thebusiness by overburdening the operations with waste management responsibilities that exceedwhat is appropriate for RV storage use. The appellant claims that the condition is unreasonableand will encourage the dumping of imported waste, including hazardous materials. Furthermore,the appeal cites that the condition goes beyond the requirements of, and violates, FairfieldMunicipal Code Section 9.230 Litter due to the facility generating little waste. The appealconcludes that the condition should be removed because there are no code regulations thatrequire the signage, and it is more than what is necessary. In correlation to the signage condition,the appellant requests the condition for the Public Works Department to review and approve thesign’s final design and location to be removed because it is not prescriptive enough. The appeal restates the assertion that the City’s indemnification clause condition is too broadwhen combined with the signage requirement. The appellant claims there is an increased liabilityrisk due to the signage conditions. Should the signage conditions remain, the appellant requeststhe indemnity conditions be revised to require the City to accept joint and several liabilities for anyclaims arising out of the disposal of hazardous waste on the site.The appeal also requests that the council remove the condition to construct a 13ft by 8ft trashenclosure, as modified by the commission. The appeal asserts that the construction of anenclosure is unreasonable and unrelated to the waste generation of the RV storage use, and thatwaste carts can be utilized and stored indoors in place of an enclosure. The appeal additionally claims that the commission improperly held two hearings on the initialappeal. The appellant states that Resolution PC2022­12 should have been placed on the consentcalendar for the commission’s October 26, 2022, meeting. Furthermore, the appellant notes thatthe appeal was placed on the agenda as a public hearing. While City staff and legal counselnoted that the appeal item was, in fact, not a public hearing, the appellant asserts that a quasi­hearing was held. Lastly, the appeal requests for the Use Permit to begin on the date of the council’s final decision. The appeal letter concludes with a summary of the requested condition removals and revisions.Additionally, the summary includes a statement that the filing of said appeal is timely in that it wassubmitted within 14 business days of December 7, 2022, the date the executed ResolutionPC2022­12 was received by the appellant. Again, the appellant submitted their appeal letter tothe City on December 29, 2022.4. Staff Analysis of Appeal:Staff finds the appellant failed to properly file the appeal within 14business days of the commission’s decision on October 26, 2022, as codified in Section25.44.2.B of the Zoning Ordinance. Additionally, there is no explicit timeframe for providing writtennotice of the commission’s decision or the associated resolution. Therefore, there is no supportfor the claim that a delay in receiving the resolution would extend the appeal period. However, due to the unusual circumstances of the agenda item describing the commissions’decision on Resolution PC2022­12 as a public hearing for the October 26, 2022, meeting, staffaccepted the appeal submittal to allow the appellant to exhaust their administrative remedies. Itshould be noted that although the agenda of October 26, 2022, described the resolution action asa public hearing, both legal counsel and City staff informed the appellant team before the meetingthat the appeal would not undergo another public hearing. The item was listed as a scheduledmatter item rather than a consent calendar item because the City’s Planning Commission doesnot have a consent calendar. During the commission meeting, it was noted again that the itemwas not subject to a public hearing. The appellant was given time to address the commission as apublic comment courtesy. While the appeal has been brought forth for a public hearing and council review, staffrecommends upholding the commission’s decision because the appeal is untimely. The appellantdid not submit their appeal letter until December 29, 2022, 65 days after the commission’sdecision on October 26, 2022. Additionally, December 29, 2022, is fifteen business days afterstaff provided the written notice of the commission’s decision to the appellants in the form of thefinal, approved Resolution PC2022­12 on December 7, 2022. Accordingly, the appeal is untimelyeven if you accept the appellant’s position that the date of the written notice should be treated asthe date of the commission’s decision. Should the council wish to further review the merits of theappeal, the following analysis is included to inform deliberations. The staff has reviewed the justification for the appeal and has determined it to be unsubstantiated.To make findings of approval for the requested Minor Development Review and Use Permit, staffmust ascertain whether the project’s development or business operations will create a nuisanceor be detrimental to the health, safety, morals, peace, or the general welfare of the surroundingneighborhood and the City. The conditions in question are necessary to implement the project andensure that the operation of the RV storage facility will not be a nuisance or detrimental to thegeneral welfare of the greater community. Furthermore, staff finds that the conditions areproportional to land use intensity and not an imposition on the applicant. Addressing the signage condition, staff crafted the language to safeguard the availability of wastedisposal to customers and ensure waste is not left uncontained on the project site. Uncontainedwaste would impact the facility operations, placing the responsibility to collect and dispose ofwaste to keep the property clean onto the business. Furthermore, if waste collection facilities arenot provided on the project site, the likelihood of waste being littered onto adjacent properties andthe public right­of­way are increased, which will negatively impact the surrounding community. Asnoted in the Background Information section of this report, staff coordinated with the appellant torevise the condition to alleviate concerns with access to the trash enclosure, hazardous andelectronic waste, and Republic Services contact. The nuanced language of “trash enclosure” to“trash receptacles/cart” was imposed as the appellant shared concerns with people overfilling anddumping into the enclosure. The current condition leaves flexibility for the appellant to providetrash receptacles in a preferred location and under employee supervision, should they so choose.The signage language is necessary to ensure customers are aware they have access to thesereceptacles and encourages proper waste disposal. The appellant’s concerns about customers’disposal of hazardous materials on­site are unrelated to the signage condition imposed.Furthermore, this concern could be alleviated with additional educational information stating thathazardous and electronic waste are not permitted on­site and that Republic Services hasalternative disposal methods. However, this language was removed per the appellant’s requestduring the June 2022 meeting. Should hazardous or other unpermitted waste be left on­site, thebusiness may contact Republic Services to schedule proper pick­up and disposal options. Thestaff has worked with the appellant to craft reasonable signage conditions that adequatelyaddress the waste disposal concerns.The appeal also references the City’s Municipal Code Section 9.230 Litter and states that thesignage condition is in conflict. Staff does not concur with this assertion, as the intent of this codesection is to prevent littering. The code section states that “publicly patronized establishments andinstitutions shall provide, empty, and maintain adequate Containers for public deposit of SolidWaste generated by the public as a result of the patronization of such establishments.” Thecondition of the trash receptacles and associated signage implement this code section ratherthan violate it.Not noted in the appeal but identified in the conditions and relevant for the discussion, MunicipalCode Section 9.220 Recyclables and Organic Waste Generator Requirements requires allcommercial/industrial businesses to be responsible for providing a basic level of recyclable andorganic waste collection, including the minimum collection and delivery of waste to a resourcerecovery facility, such as Republic Services. Furthermore, Section 9.220 states, the businessowner shall, “(E) Prominently post and maintain one or more signs where Recyclables and/orOrganic Waste are collected and/or stored that set forth what materials are required to be sourceseparated in addition to collection procedures for such materials. (F) Notify and instructemployees and tenants of applicable source separation requirements, including a list ofRecyclables and/or Organic waste that are required to be source­separated for recycling.”Accordingly, the signage condition is not in conflict with the Municipal Code and supports thepolicy rationale behind these code sections.

Lastly, on signage, the appellant’s assertion that the signage condition improperly defers critical development details, such as location and content, is unpersuasive. The staff has made no statements or implications that the signage would be required to be off­site, directed towards, or viewable to the public. The intent of the signage conditions is to guide the RV storage customers to proper waste disposal. If desired, the staff is amenable to providing more prescriptive direction in writing to the business owner.

Regarding the appellant’s concerns with the trash enclosure size, the original conditions approved by the Zoning Administrator already accounted for the low intensity of business operations by requiring a smaller enclosure than the 18ft by 12ft dimensions prescribed by City standards for “Office, Retail, Industrial and General Commercial” uses over 20,000 square feet. Additionally, the commission granted an even smaller enclosure size. As currently conditioned, the project is required to construct the smallest enclosure size available for commercial projects, 13ft by 8ft. It would be against City standards to allow a new commercial development to be constructed without any trash enclosures on site.

Finally, indemnification conditions are applied to every development project and conditional use permit. The language incorporated into the project entitlements was prepared with guidance from legal counsel and has been standardized. In no circumstance does staff recommend that the language be revised or removed as this may expose the City to liability.

FINANCIAL IMPACT
N/A
PUBLIC CONTACT/ADVISORY BODY RECOMMENDATION
For the February 21, 2023, City Council meeting, a public hearing notice was published in the Daily Republic newspaper on February 10, 2023, and mailed to all persons who own property within 500 feet of the subject property.

The commission held the following duly noticed public hearings to consider a previous appeal:

October 26, 2022:The commission adopted Resolution PC2022­12 upholding the decision of the Zoning Administrator to approve a Minor Development Review, Use Permit, and Environmental Review, and partially granting an appeal by Steve Mirabito/StoragePro of Fairfield, LLC to modify the conditions of approval.

October 12, 2022:The commission motioned to uphold the decision of the Zoning Administrator to approve a Minor Development Review, Use Permit, and Environmental Review, and partially granted an appeal by Steve Mirabito/StoragePro of Fairfield, LLC, to modify the conditions of approval. The direction was provided to staff to revise Resolution PC2022­12 to meet the motion.

The Zoning Administrator held the following duly noticed public hearings to consider the project entitlement requests:

August 1, 2022:The Zoning Administrator granted Minor Development Review, Use Permit, and Environmental Review approvals to construct a Recreational Vehicle Storage facility within the Limited Industrial (IL) Zoning District on a property at 490 Edison Court, Fairfield.

June 13, 2022:The Zoning Administrator held and continued a public hearing for a Minor Development Review, Use Permit, and Environmental Review request to construct a Recreational Vehicle Storage facility within the Limited Industrial (IL) Zoning District on a property at 490 Edison Court, Fairfield.

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Agenda Item No: 15.AGENDA REPORTDATE:February 21, 2023 TO:Mayor and City CouncilFROM:David Gassaway, City ManagerSUBJECT:Public Hearing; and Resolution 2023­36 of the City Council of the City of Fairfield Upholding the PlanningCommission’s Decision and Approving a Minor Development Review (MD2021­011)and Use Permit (UP2021­002) for the Development of a Recreational Vehicle StorageFacility, with the Capacity for 138 Vehicles and Solar Carports on a ±4.21­Acre Parcelat 490 Edison Court (APN: 0180­130­110)RECOMMENDED ACTIONHold public hearing and adopt resolution.STATEMENT OF ISSUEThe Fairfield Zoning Ordinance allows any party aggrieved or affected by a decision or determinationby the Planning Commission to file an appeal within 14 business days following the commission’sdecision. When an appeal has been filed, the community development director shall schedule thematter for consideration by the City Council within 45 days of the appeal submittal.On October 26, 2022, the commission passed Resolution PC2022­12 regarding the Edison RVStorage project. On December 29, 2023, the project applicant filed an appeal to the CommunityDevelopment Department. In accordance with Zoning Ordinance Section 25.44.2 Appeal Filing, theappeal was submitted beyond the proper filing date. Despite the untimeliness of the appeal filing, staffand legal counsel recommends that the council hear the appeal and allow the applicant to exhaust alltheir remedies for action. It should be noted that this recommendation is due to the unusualcircumstance of an inconsistent commission agenda for the October 26, 2022, meeting. Upon reviewing the appeal, staff recommends that the council upholds the decision of the commissionto approve the project subject to the development conditions of approval, as attached in Exhibits A andB.DISCUSSION1. Project Description:The project proposal is a recreational vehicle (RV) storage facility withcovered carport structures and associated site utilities and infrastructure improvements. Theproject consists of 132 covered parking stalls and an additional six uncovered parking stalls. Theproject, as proposed and conditioned, meets all required City development regulations. Furtherproject analysis can be reviewed in the attached October 12 and October 26, 2022, Commissionreports.2. Background:Minor Development Review, Conditional Use Permit, and Environmental Reviewapplications were received by the Planning Division on April 7, 2021, for the project. The project’senvironmental review was an extended process due to stormwater design challenges with theadjacent Jameson Canyon Creek. After careful consideration and coordination between City staffand the applicant team, all impacts on the Creek were avoided, and the project could proceedforward under a California Environmental Quality Act (CEQA) exemption.  On June 13, 2022, a public Zoning Administrator hearing for the project was held. The applicantteam was present, and no further members of the public attended. During the hearing, theapplicant raised concerns about several of the project conditions of approval. To provide moretime for City staff and the applicant to discuss the conditions, the hearing was continued, and noformal action was taken. Over the next six weeks, staff coordinated with the applicant to addressconcerns regarding the conditions of the required trash enclosure, the Edison Court Streetmoratorium, the proposed stormwater system, and the proposed stormwater detention. On June 20, 2022, City staff met with the applicant and provided clarifications on the streetmoratorium, stormwater systems, and stormwater detention conditions to the satisfaction of theapplicant. Further discussions were had regarding the trash enclosure conditions. Specifically, theoriginal conditions required that signage be constructed with the trash enclosure identifying 1)source­separation for recyclables, organics, and garbage; 2) tenants/customers having access tothe enclosure; 3) restrictions on disposal of hazardous and electronic waste in the enclosure; and4) contact information for Republic Services for additional waste management options. Theapplicant expressed concerns that the signage conditions would attract people to dump largeobjects and excess waste into the trash enclosure, placing an undue burden on the business.Additionally, the applicant voiced their opinion that the business is not obligated to provide wastecontainers for their customers to dispose of waste. Furthermore, the applicant offeredconsiderations that they would keep the trash enclosure locked to restrict customer access andavoid unwanted waste. To address the applicant’s concerns, staff revised the condition byremoving the language regarding the disposal of hazardous and electronic waste and the contactinformation for Republic Services. Signage requirements regarding access to the enclosure wererevised by replacing the “trash enclosure” verbiage with “trash receptacles/carts” to provide theapplicant flexibility on the operations of the trash enclosure while ensuring the intent of properwaste management remained, as required by the Article VI, Chapter 9, of the Municipal Code.Additional discussions were had on the size of the trash enclosure. The applicant provideddescriptions of the business operations and records of another facility’s weekly waste generation.Staff acknowledged this information and concurred that the project scope did not warrant theCity’s standard enclosure size for “Office, Retail, Industrial and General Commercial” uses over20,000 square feet. City staff had already significantly reduced the trash enclosure size andinformed the applicant that the size requirements imposed by the conditions of approval factoredin the low­intensity land use operations. The Zoning Administrator public hearing was continued to August 1, 2022, where the modifiedconditions of approval were presented, public comments were received, and an approval actionon the project was made by the Zoning Administrator. For reference, the hearing sign­in sheet andannotated verbal public comments made during the hearing are attached as Exhibit C and ExhibitD, respectively. On August 23, 2022, the applicant filed an appeal of the Zoning Administrator’s decision on theproject. The appeal addressed four conditions of approval for the project. The appellantrequested the commission to reconsider conditions regarding 1) signage that states customersshall have access to waste receptacles/carts for waste disposal; 2) providing two cubic yardcontainers for waste and recycling within the trash enclosure; and 3/4) the City’s indemnificationclause [which is conditioned in both the Minor Development Conditions of Approval and the UsePermit].  In the appeal filing and during the commission meeting of October 12, 2022, the appellantasserted that the conditioned signage would invite customers to dispose of imported waste on­site, including potentially hazardous materials. Therefore, burdening the facility with wastemanagement requirements beyond what is believed to be appropriate for the RV storage used bythe applicant. Furthermore, the appellant stated that the signage condition is not detailed enough,in that it is subject to review and approval of the Public Works Department prior to the issuance ofa Building Permit. The appellant continued the appeal justification noting that the Public WorksDepartment’s Conditions of Development requires two cubic yards of recycling and waste bins inan 18 ft­by­9 ft enclosure. The appeal claimed that the recycling and waste bins are larger thanwhat is needed for the facility. The appellant echoed that this condition, like the signage condition,will encourage customers to dispose of imported waste on­site and burden the facility with excesswaste management responsibilities. The appellant requested that the condition be reduced to “amore reasonable requirement,” referring to a reduction in enclosure size. The appeal concludedwith an assertion that the City’s indemnification clause condition is too broad when combined withthe signage requirement. It, therefore, unreasonably requires the facility to assume risks imposedby the signage condition. The appeal requested that the indemnity conditions be revised torequire the City to accept joint and several liabilities for any claims arising out of the disposal ofhazardous waste on the site.After a lengthy discussion, the commission made a motion to uphold the Zoning Administrator’sapproval and partially grant the appeal by revising the conditions of approval to reduce the size ofthe trash enclosure. On October 26, 2022, the staff brought the revised Resolution PC2022­12back to the commission for action. As previously noted, the agenda for the meeting stated theitem was a public hearing, which it was not. Prior to the meeting, staff and legal counsel clarifiedfor the appellant that the information on the agenda was inconsistent with the process. At themeeting, staff provided an opportunity for public comment on the item, during which time theappellant reiterated the basis for their appeal. After deliberation, the commission approved therevised Resolution PC2022­12.3. Summary of Appeal to City Council:The appellant has provided a multiple­point appeal letterrequesting five conditions of approval for the project to be removed or revised; 1) signage thatstates customers shall have access to waste receptacles/carts for waste disposal; 2) requiringthe final signage design and location to be reviewed and approved by the Public WorksDepartment; 3/4) the City’s indemnification clause [which is conditioned in both the MinorDevelopment Conditions of Approval and the Use Permit]; and 5) construction of a 13ft by 8fttrash enclosure. The appeal documents are attached as Exhibit E.The appeal reiterates the commission’s appeal that the signage condition will adversely affect thebusiness by overburdening the operations with waste management responsibilities that exceedwhat is appropriate for RV storage use. The appellant claims that the condition is unreasonableand will encourage the dumping of imported waste, including hazardous materials. Furthermore,the appeal cites that the condition goes beyond the requirements of, and violates, FairfieldMunicipal Code Section 9.230 Litter due to the facility generating little waste. The appealconcludes that the condition should be removed because there are no code regulations thatrequire the signage, and it is more than what is necessary. In correlation to the signage condition,the appellant requests the condition for the Public Works Department to review and approve thesign’s final design and location to be removed because it is not prescriptive enough. The appeal restates the assertion that the City’s indemnification clause condition is too broadwhen combined with the signage requirement. The appellant claims there is an increased liabilityrisk due to the signage conditions. Should the signage conditions remain, the appellant requeststhe indemnity conditions be revised to require the City to accept joint and several liabilities for anyclaims arising out of the disposal of hazardous waste on the site.The appeal also requests that the council remove the condition to construct a 13ft by 8ft trashenclosure, as modified by the commission. The appeal asserts that the construction of anenclosure is unreasonable and unrelated to the waste generation of the RV storage use, and thatwaste carts can be utilized and stored indoors in place of an enclosure. The appeal additionally claims that the commission improperly held two hearings on the initialappeal. The appellant states that Resolution PC2022­12 should have been placed on the consentcalendar for the commission’s October 26, 2022, meeting. Furthermore, the appellant notes thatthe appeal was placed on the agenda as a public hearing. While City staff and legal counselnoted that the appeal item was, in fact, not a public hearing, the appellant asserts that a quasi­hearing was held. Lastly, the appeal requests for the Use Permit to begin on the date of the council’s final decision. The appeal letter concludes with a summary of the requested condition removals and revisions.Additionally, the summary includes a statement that the filing of said appeal is timely in that it wassubmitted within 14 business days of December 7, 2022, the date the executed ResolutionPC2022­12 was received by the appellant. Again, the appellant submitted their appeal letter tothe City on December 29, 2022.4. Staff Analysis of Appeal:Staff finds the appellant failed to properly file the appeal within 14business days of the commission’s decision on October 26, 2022, as codified in Section25.44.2.B of the Zoning Ordinance. Additionally, there is no explicit timeframe for providing writtennotice of the commission’s decision or the associated resolution. Therefore, there is no supportfor the claim that a delay in receiving the resolution would extend the appeal period. However, due to the unusual circumstances of the agenda item describing the commissions’decision on Resolution PC2022­12 as a public hearing for the October 26, 2022, meeting, staffaccepted the appeal submittal to allow the appellant to exhaust their administrative remedies. Itshould be noted that although the agenda of October 26, 2022, described the resolution action asa public hearing, both legal counsel and City staff informed the appellant team before the meetingthat the appeal would not undergo another public hearing. The item was listed as a scheduledmatter item rather than a consent calendar item because the City’s Planning Commission doesnot have a consent calendar. During the commission meeting, it was noted again that the itemwas not subject to a public hearing. The appellant was given time to address the commission as apublic comment courtesy. While the appeal has been brought forth for a public hearing and council review, staffrecommends upholding the commission’s decision because the appeal is untimely. The appellantdid not submit their appeal letter until December 29, 2022, 65 days after the commission’sdecision on October 26, 2022. Additionally, December 29, 2022, is fifteen business days afterstaff provided the written notice of the commission’s decision to the appellants in the form of thefinal, approved Resolution PC2022­12 on December 7, 2022. Accordingly, the appeal is untimelyeven if you accept the appellant’s position that the date of the written notice should be treated asthe date of the commission’s decision. Should the council wish to further review the merits of theappeal, the following analysis is included to inform deliberations. The staff has reviewed the justification for the appeal and has determined it to be unsubstantiated.To make findings of approval for the requested Minor Development Review and Use Permit, staffmust ascertain whether the project’s development or business operations will create a nuisanceor be detrimental to the health, safety, morals, peace, or the general welfare of the surroundingneighborhood and the City. The conditions in question are necessary to implement the project andensure that the operation of the RV storage facility will not be a nuisance or detrimental to thegeneral welfare of the greater community. Furthermore, staff finds that the conditions areproportional to land use intensity and not an imposition on the applicant. Addressing the signage condition, staff crafted the language to safeguard the availability of wastedisposal to customers and ensure waste is not left uncontained on the project site. Uncontainedwaste would impact the facility operations, placing the responsibility to collect and dispose ofwaste to keep the property clean onto the business. Furthermore, if waste collection facilities arenot provided on the project site, the likelihood of waste being littered onto adjacent properties andthe public right­of­way are increased, which will negatively impact the surrounding community. Asnoted in the Background Information section of this report, staff coordinated with the appellant torevise the condition to alleviate concerns with access to the trash enclosure, hazardous andelectronic waste, and Republic Services contact. The nuanced language of “trash enclosure” to“trash receptacles/cart” was imposed as the appellant shared concerns with people overfilling anddumping into the enclosure. The current condition leaves flexibility for the appellant to providetrash receptacles in a preferred location and under employee supervision, should they so choose.The signage language is necessary to ensure customers are aware they have access to thesereceptacles and encourages proper waste disposal. The appellant’s concerns about customers’disposal of hazardous materials on­site are unrelated to the signage condition imposed.Furthermore, this concern could be alleviated with additional educational information stating thathazardous and electronic waste are not permitted on­site and that Republic Services hasalternative disposal methods. However, this language was removed per the appellant’s requestduring the June 2022 meeting. Should hazardous or other unpermitted waste be left on­site, thebusiness may contact Republic Services to schedule proper pick­up and disposal options. Thestaff has worked with the appellant to craft reasonable signage conditions that adequatelyaddress the waste disposal concerns.The appeal also references the City’s Municipal Code Section 9.230 Litter and states that thesignage condition is in conflict. Staff does not concur with this assertion, as the intent of this codesection is to prevent littering. The code section states that “publicly patronized establishments andinstitutions shall provide, empty, and maintain adequate Containers for public deposit of SolidWaste generated by the public as a result of the patronization of such establishments.” Thecondition of the trash receptacles and associated signage implement this code section ratherthan violate it.Not noted in the appeal but identified in the conditions and relevant for the discussion, MunicipalCode Section 9.220 Recyclables and Organic Waste Generator Requirements requires allcommercial/industrial businesses to be responsible for providing a basic level of recyclable andorganic waste collection, including the minimum collection and delivery of waste to a resourcerecovery facility, such as Republic Services. Furthermore, Section 9.220 states, the businessowner shall, “(E) Prominently post and maintain one or more signs where Recyclables and/orOrganic Waste are collected and/or stored that set forth what materials are required to be sourceseparated in addition to collection procedures for such materials. (F) Notify and instructemployees and tenants of applicable source separation requirements, including a list ofRecyclables and/or Organic waste that are required to be source­separated for recycling.”Accordingly, the signage condition is not in conflict with the Municipal Code and supports thepolicy rationale behind these code sections. Lastly, on signage, the appellant’s assertion that the signage condition improperly defers criticaldevelopment details, such as location and content, is unpersuasive. The staff has made nostatements or implications that the signage would be required to be off­site, directed towards, orviewable to the public. The intent of the signage conditions is to guide the RV storage customersto proper waste disposal. If desired, the staff is amenable to providing more prescriptive directionin writing to the business owner.Regarding the appellant’s concerns with the trash enclosure size, the original conditions approvedby the Zoning Administrator already accounted for the low intensity of business operations byrequiring a smaller enclosure than the 18ft by 12ft dimensions prescribed by City standards for“Office, Retail, Industrial and General Commercial” uses over 20,000 square feet. Additionally, thecommission granted an even smaller enclosure size. As currently conditioned, the project isrequired to construct the smallest enclosure size available for commercial projects, 13ft by 8ft. Itwould be against City standards to allow a new commercial development to be constructedwithout any trash enclosures on site. Finally, indemnification conditions are applied to every development project and conditional usepermit. The language incorporated into the project entitlements was prepared with guidance fromlegal counsel and has been standardized. In no circumstance does staff recommend that thelanguage be revised or removed as this may expose the City to liability.FINANCIAL IMPACTN/APUBLIC CONTACT/ADVISORY BODY RECOMMENDATIONFor the February 21, 2023, City Council meeting, a public hearing notice was published in the DailyRepublic newspaper on February 10, 2023, and mailed to all persons who own property within 500 feetof the subject property.The commission held the following duly noticed public hearings to consider a previous appeal:October 26, 2022:The commission adopted Resolution PC2022­12 upholding the decision of theZoning Administrator to approve a Minor Development Review, Use Permit, and EnvironmentalReview, and partially granting an appeal by Steve Mirabito/StoragePro of Fairfield, LLC to modifythe conditions of approval. October 12, 2022:The commission motioned to uphold the decision of the Zoning Administratorto approve a Minor Development Review, Use Permit, and Environmental Review, and partiallygranted an appeal by Steve Mirabito/StoragePro of Fairfield, LLC, to modify the conditions ofapproval. The direction was provided to staff to revise Resolution PC2022­12 to meet themotion. The Zoning Administrator held the following duly noticed public hearings to consider the projectentitlement requests: August 1, 2022:The Zoning Administrator granted Minor Development Review, Use Permit, andEnvironmental Review approvals to construct a Recreational Vehicle Storage facility within theLimited Industrial (IL) Zoning District on a property at 490 Edison Court, Fairfield. June 13, 2022:The Zoning Administrator held and continued a public hearing for a MinorDevelopment Review, Use Permit, and Environmental Review request to construct a RecreationalVehicle Storage facility within the Limited Industrial (IL) Zoning District on a property at 490 Edison Court, Fairfield.

ALTERNATIVE ACTION
The council may choose to grant the appeal, in whole or in part, and direct staff to further modify the conditions of approval for this project. For this public hearing, staff has prepared a resolution to uphold the commission’s decision. The council may choose to approve or deny this resolution.

STAFF CONTACT
Meily M. Sheehan, Interim Planning Manager
(707) 428­7474
[email protected]
COORDINATED WITH
City Attorney's Office, Public Works Department
ATTACHMENTS:

Description
Proposed Resolution
Exhibit A: Minor Development Review Conditions of Approval_MD2021­011 Exhibit B: Use Permit_UP2021­002
Exhibit C: Zoning Administrator Hearing Sign­In Aug 1 2022 Exhibit D: Zoning Administrator Hearing Public Comments Aug 1 2022 2022­10­12 Planning Commission Minutes and Staff Report 2022­10­26 Planning Commission Resolution PC2022­12, Minutes, and Staff Report Exhibit E: 2022­12­29 Edison RV Storage Appeal Form
REVIEWERS:

Reviewer Action Date
Beavers, Esther Approved 2/13/2023 ­ 5:30 PM
Packet Page 563 of 765

CITY OF FAIRFIELD

RESOLUTION NO. 2023-36

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF FAIRFIELD UPHOLDING THE PLANNING COMMISSION’S DECISION AND APPROVING A MINOR DEVELOPMENT REVIEW (MD2021 -011) AND USE PERMIT (UP2021-002) FOR THE DEVELOPMENT OF A RECREATIONAL VEHICLE STORAGE FACILITY, WITH THE CAPACITY FOR 138 VEHICLES AND SOLAR CARPORTS ON A ±4.21-ACRE PARCEL AT 490 EDISON COURT (APN: 0180-130-110)

WHEREAS, on April 7, 2021, applications for a Minor Development Review (MD2021-011), Use Permit (UP2021-002), and Environmental Review (ER2021-009) for a recreational vehicle (RV) storage lot, with the capacity for 138 vehicles and solar carports on a ±4.21 -acre parcel at 490 Edison Court (Project) were properly filed with the Community Development Department in accordance with the rules and regulations governing the official filing of such applications; and

WHEREAS, the Zoning Administrator held a duly noticed public hearing on June 13, 2022, to consider the request for a Minor Development Review, Use Permit, and Environmental Review in conformance with Section 25.43.2 of the City Zoning Ordinance; and

WHEREAS, on August 1, 2022, the Zoning Administrator held a continued public hearing to consider the said request for a Minor Development Review, Use Permit, and Environmental Review in conformance with Section 25.43.3 of the City Zoning Ordinance; and

WHEREAS, on August 1, 2022, the Zoning Administrator determined that the findings for a Minor Development Review, Use Permit, and Environmental Review to develop an RV storage facility, as conditioned, were met in accordance with Section 25.40 and thereby approved the Minor Development Review, Use Permit, and Environmental Review; and

WHEREAS, on August 23, 2022, Steve Mirabito/StoragePro at Fairfield, LLC properly filed an appeal of the Zoning Administrator’s decision regarding the RV storage facility in accordance with the rules and regulations governing the official filing of appeals; and

WHEREAS, on October 12, 2022, the commission held a duly noticed public hearing. The City staff presented substantial factual information regarding the proposed Project in staff reports and through oral presentations before the commission. The commission considered all public testimony and information presented during the public hearin g regarding this application, motioned, and directed staff to modify the project’s conditions of approval; and

WHEREAS, on October 26, 2022, the commission held a public meeting. The City staff presented substantial factual information regarding the proposed Project in staff reports and through oral presentations before the commission. The commission received public comment. The commission considered all information presented regarding this application , motioned, and Packet Page 564 of 765Attachment 1 Page 1 of 4

RES. NO. 2023-36