Agenda, second session — Fairfield City Council, April 1, 2025 (part 1 of 3)

CITY OF FAIRFIELD

CITY COUNCIL

MEETING AGENDA

Tuesday, April 1, 2025, 6:00 p.m.

Harry T. Price Memorial Council Chamber
1000 Webster Street, Fairfield, CA 94533 or Via Zoom

CONCURRENT MEETING

AMENDED
Notice to Public
The City of Fairfield is committed to providing meeting facilities that are accessible to persons with disabilities and/or have language barriers. To request meeting materials in alternative formats, or to request a sign language interpreter, realtime captioning, or other accommodation, please contact the City Clerk's Office, at least 72 hours in advance of the meeting at (707) 428-7400.

For individuals with hearing or speaking limitations, dial 711 or (800) 735-2922 (English). For Spanish, Tagalog or other language, please dial (800) 855-3000 and provide the communication assistant with the following City telephone number: (707) 399-4010.

DISCLOSURE OF CAMPAIGN CONTRIBUTIONS:

Pursuant to Government Code 84308, City Council Members are disqualified and not able to participate in any agenda item involving contracts (other than competitively bid, labor, or personal employment contracts), franchises, discretionary land use permits and other entitlements if the City Council Member received more than $250 in campaign contributions from the applicant or contractor, an agent of the applicant or contractor, or any financially interested participant who actively supports or opposes the City's decision on the agenda item in the 12 months prior to the date the item is on the agenda. Members of the City Council who have received, and applicants, contractors or their agents who have made, campaign contributions totaling more than $250 to a City Council Member in the 12 months prior to the date the item is on the agenda are required to disclose that fact for the official record of the subject proceedings. Disclosures must include the amount of the campaign contribution and identify the recipient City Council Member and may be made either in writing to the City Clerk before the agenda item or by verbal disclosure during consideration.

Members of the public can observe the meeting on Roku City of Fairfield, Xfinity Channel 26, AT&T U-Verse Channel 99, and web streamed live at www.youtube.com/FFCATV. The public may join the meeting via Zoom at: https://fairfieldca.zoom.us/j/89060213840?pwd=UUd0WlpEMStLemcxbld4dzVMK3Z5dz09 or via phone (408) 638-0968, Webinar ID: 890 6021 3840, Passcode: 7074287400 Pages
A. CALL TO ORDER 6:00 PM
B. ROLL CALL
Councilmember Doug Carr
Councilmember Doriss Panduro
Councilmember Manveer Sandhu
Councilmember Scott Tonnesen
Councilmember K. Patrice Williams
Vice Mayor Pam Bertani
Mayor Catherine "Cat" Moy
C. INVOCATION - Minister Loretta Roberson, Bethel Community Church D. PLEDGE OF ALLEGIANCE
E. COUNCIL REPORTS
F. CITY MANAGER REPORT
G. CITY ATTORNEY REPORT
H. CITY CLERK REPORT
I. PRESENTATIONS
I.1 Proclamation Declaring Education and Sharing Day Presented by Mayor Catherine "Cat" Moy
J. PUBLIC COMMENTS
Persons wishing to address the City Council on subjects not on the agenda but within the jurisdiction of the council may do so at this time. The council cannot discuss or take action on matters, not on the agenda for this meeting, but councilmembers may briefly respond to statements made or questions raised by the public, ask for clarification from staff, refer the matter to staff, request staff to report back To the council at a subsequent meeting, or place the matter on a future agenda. To speak on an agenda item please use the “raise your hand” feature or press *9 on your phone. Speakers are limited to three minutes per item, as determined by the mayor.

K. CONVENE JOINT MEETING OF THE SUCCESSOR AGENCY
L. SUCCESSOR AGENCY - CONSENT CALENDAR
All matters listed on the Consent Calendar are to be approved with one motion unless a member of the Agency or the public requests that separate action be taken on a specific item.

L.1 Resolution SA2025-01 CD Termination Document for Assessor Parcel Number 0148-540-030
7 Approving and Authorizing the Execution of the Termination of Recorded Documents Affecting Real Property Located on Mangels Boulevard More Commonly Known as Assessor Parcel Number 0148-540-030

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Funding Source: N/A
Contact: Jennifer Rice, (707) 428-7727
Recommended Action:

Adopt resolution.

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

Recommended Action:

To approve the consent calendar.

N.1 Resolution 2025-48 PW Amendment #1 to the Memorandum of Understanding for Cost-Sharing of the Lopes Road and Water Pipeline Reconstruction 15 Approving Amendment #1 to the Memorandum of Understanding Amendment #1 Between the City of Fairfield and the City of Benicia for Cost-Sharing of the Lopes Road and Water Pipeline Reconstruction Project and Authorizing the City Manager to Execute the Amendment on Behalf of the City
Funding Source: N/A
Contact: Jason Riley, (707) 428-7481
Recommended Action:

Adopt resolution.

N.2 Resolution 2025-49 PW Fairfield Adaptive System Traffic Signal Improvement Project Acceptance
34 Accepting the Fairfield Adaptive System Traffic Signal Improvement Project, Federal Aid Project No. HSIPL-5132(050) as Complete
Funding Source: N/A
Contact: Roger Dunham, (707) 428-7478
Recommended Action:

Adopt resolution.

N.3 Ordinance 2025-03 PD Amending Chapter 12.800, Section 12.804 Infraction to Misdemeanor
37 Amending Chapter 12.800, Section 12.804, Changing Any Violation of the Ordinance from an Infraction to a Misdemeanor
Funding Source: N/A
Contact: Daniel Marshall, (707) 428-7366

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Recommended Action:

Provide second reading and adopt Ordinance 2025-03.

N.4 Resolution 2025-50 CM Memorandum of Understanding with Solano County and Solano Land Trust
40 Authorizing Execution of a Memorandum of Understanding with the County of Solano and the Solano Land Trust for Pass-Through of Funding from Fairfield Community Facilities District #2 (North Cordelia Open Space) Regarding Funding for Patwino Worrtla Kodoi Dihi Open Space Park
Funding Source: Community Facilities District #2 (North Cordelia Open Space) Contact: David Gassaway, (707) 428-7400
Recommended Action:

Approve resolution.

N.5 CM Minute Action Approving Street Naming to Honor Mary Louise Marsh 48 Funding Source: N/A
Contact: David Gassaway, (707) 428-7400
Recommended Action:

Approve street naming honoring Mary Louise Marsh.

O. NEW BUSINESS
O.1 CM Minute Action Approving the Mayor’s Appointments 59 Minute Action Approving Mayor’s Appointments to the Community Development Block Grant Advisory Committee, Landscape Oversight Committee, and the Youth Commission
Funding Source: N/A
Contact: Esther Beavers, (707) 428-7402
Recommended Action:

Approve appointments. Perform oath of office.

O.2 PW Increasing the Number of At-Large Landscape Oversight Committee Members
61 Discussion and Direction Regarding Increasing the Number of At-Large Landscape Oversight Committee Members
Funding Source: N/A
Contact: Chris Lewis, (707) 428-7089
Recommended Action:

Receive report, open discussion, and provide direction to staff.

O.3 PW Proposition 218 Balloting Process for Landscaping and Lighting Maintenance Districts
66

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Discussion and Direction Regarding a Proposition 218 Balloting Process for Seven Landscaping and Lighting Maintenance Districts
Funding Source: N/A
Contact: Chris Lewis, (707) 428-7089
Recommended Action:

Receive report, open discussion, and provide direction to staff.

O.4 Resolution 2025-51 FN City of Fairfield Community Facilities District No. 2016-1 Special Tax Bonds Issuance and Sale
68 Authorizing the Issuance and Sale of Special Tax Bonds for City of Fairfield Community Facilities District No. 2016-1 (Villages at Fairfield) with Respect to its Improvement Area B, and Approving and Authorizing Related Documents and Actions
Funding Source: N/A
Contact: John Furtado, (707) 428-7629
Recommended Action:

Adopt resolution.

P. PUBLIC HEARINGS
P.1 Resolutions 2025-52 and 2025-53 CD North Texas Street Business Improvement District
228
Resolution 2025-52 Levying an Assessment for Calendar Year 2025 for the North Texas Street Business Improvement District; and
Resolution 2025-53 Approving an Agreement with the North Texas Street Business Association for the Calendar Year 2025 Operation and Administration of the North Texas Street Business Improvement District Funding Source: N/A
Contact: Jennifer Rice, (707) 428-7727
Recommended Action:

Hold public hearing and adopt resolutions.

Q. ADJOURN
ADJOURN TO TUESDAY, APRIL 15, 2025, 6:00 P.M., HARRY T. PRICE MEMORIAL COUNCIL CHAMBER.

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

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PUBLIC NOTIFICATION
I, Esther Beavers, Deputy City Clerk, do hereby certify that I have caused a true copy of the above notice and agenda to be delivered to each of the members of the Fairfield City Council, at the time and in the manner prescribed by law and that this agenda was posted at City Hall, 1000 Webster Street, Fairfield, California on Tuesday, March 25, 2025.

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Agenda Item No: L.1

AGENDA REPORT
DATE: April 1, 2025

TO: Board of Directors of the Successor Agency to the Fairfield Redevelopment Agency
FROM: David Gassaway, Executive Director

SUBJECT: Resolution SA2025-01 CD Termination Document for APN 0148-540-030

Approving and Authorizing the Execution of the Termination of Recorded Documents Affecting Real Property Located on Mangels Boulevard More Commonly Known as Assessor Parcel Number 0148-540-030

Funding Source: N/A

Contact: Jennifer Rice, (707) 428-7727

RECOMMENDED ACTION
Adopt resolution.

STATEMENT OF ISSUE
The Successor Agency to the Fairfield Redevelopment Agency (Successor Agency) is the owner of the property located on Mangels Boulevard, more commonly known as Assessor Parcel Number (APN) 0148 -540-030 (Property). It would like to have several items related to an expired Disposition and Development Agreement and subsequent amendments removed from the title.

DISCUSSION
The Successor Agency is the current owner of the Property previously encumbered by a Disposition and Development Agreement (DDA) between the Fairfield Redevelopment Agency and HJ Shein, Inc., a memorandum of which was recorded on February 18, 2000. The DDA was amended six times, with a memorandum recorded for each amendment (collectively, the DDA).

The DDA expired on June 4, 2024, and the Successor Agency would now like to have the DDA removed from the title to provide a clear and updated title report to any future buyers.

Staff worked with the City Attorney’ s Office to draft the proposed Termination of Record Affecting Real Property (Termination Document) and are looking for approval from the Board to allow the executive director to execute and record the Termination Document.

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FINANCIAL IMPACT
N/A

PUBLIC CONTACT/ADVISORY BODY RECOMMENDATION
N/A

ALTERNATIVE ACTION
The Board of Directors may choose to modify the proposed Termination Document.

COORDINATED WITH
City Attorney’s Office

STAFF CONTACT
Jennifer Rice, Economic Development Specialist
(707) 428-7727
[email protected]

ATTACHMENTS
Attachment 2: Proposed Resolution
Attachment 3: Exhibit A - Termination of Recorded Documents Affecting Real Property

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CITY OF FAIRFIELD

SUCCESSOR AGENCY TO THE FAIRFIELD REDEVELOPMENT AGENCY

RESOLUTION NO. SA2025-01

APPROVING AND AUTHORIZING THE EXECUTION OF THE TERMINATION OF RECORDED

DOCUMENTS AFFECTING REAL PROPERTY LOCATED ON MANGELS BOULEVARD MORE COMMONLY KNOWN AS ASSESSOR PARCEL NUMBER 0148-540-030

WHEREAS, the Successor Agency to the Fairfield Redevelopment Agency of the City of Fairfield (Successor Agency) is the owner of the property located on Mangels Boulevard, more commonly known as Assessor Parcel Number (APN) 0148-540-030; and

WHEREAS, the Successor Agency entered into a Disposition and Development Agreement (DDA) with HJ Shein, Inc. recorded on February 18, 2000, and six subsequent amendments (collectively, the DDA); and

WHEREAS, the DDA expired on June 4, 2024; and

WHEREAS, the Successor Agency would like to execute and record the proposed Termination of Recorded Documents Affecting Real Property allowing the DDA to be removed from title.

NOW, THEREFORE, THE SUCCESSOR AGENCY TO THE FAIRFIELD REDEVELOPMENT AGENCY OF THE CITY OF FAIRFIELD HEREBY RESOLVES:

Section 1. The Board of Directors approves the Termination of Recorded Documents Affecting Real Property.

Section 2. The Board of Directors authorizes the Executive Director to do all things necessary to implement and execute the Termination of Recorded Documents Affecting Real Property attached as Exhibit A.

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RES. NO. SA2025-01

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PASSED AND ADOPTED this 1st day of April 2025 by the following vote:

AYES: MEMBERS: MOY/BERTANI/CARR/PANDURO/SANDHU/TONNESEN/WILLIAMS NOES: MEMBERS: _________________________________________________ ABSENT: MEMBERS: _________________________________________________ ABSTAIN: MEMBERS: _________________________________________________

_________________________________________________
CHAIR
ATTEST:
___________________________

SECRETARY

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1 1925263.2

RECORDING REQUESTED BY, AND
WHEN RECORDED RETURN TO:

Successor Agency to the Fairfield
Redevelopment Agency
1000 Webster Street
Fairfield, CA 94533
Attn: Real Estate Specialist

With copies to:

Green Valley Land, LLC
6875 Enterprise Road
Glen Ellen, CA 95442
Attn: Harvey Shein

and

Placer Title Company
1300 Oliver Road, Suite 120
Fairfield, CA 94534
Attn: Kelly Guglielmo

APN 0148-540-030

EXEMPT FROM RECORDING FEES UNDER GOVERNMENT CODE SECTIONS 6103 AND 27383 (RECORDING REQUESTED BY AND IS FOR THE BENEFIT OF THE

SUCCESSOR AGENCY TO THE FAIRFIELD REDEVELOPMENT AGENCY, WHICH IS A PUBLIC ENTITY).

TERMINATION OF

RECORDED DOCUMENTS AFFECTING REAL PROPERTY

THIS TERMINATION OF RECORDED DOCUMENTS AFFECTING REAL PROPERTY (“Termination”) is dated as of _____________, 2025 for reference purposes and is made by the SUCCESSOR AGENCY TO THE FAIRFIELD REDEVELOPMENT AG ENCY, a public body, politic and corporate (the “Agency”).

RECITALS
A. The Agency and H.J. Shein Inc, an Illinois Corporation., (the “Developer”) executed those certain agreements to provide for the ownership, use, occupancy, and conveyance of the real property described therein (the “Property”) , including: (i) that certain Memorandum of Agreement dated February 16, 1999, executed by the Agency and Developer and recorded on February 18, 2000 as Document No. 2000- 00013446 in the Official Records of Solano County, California (“the Agreement”); and (ii) that certain Memorandum of Agreement dated May 31, 2001, executed by the Agency and Developer and recorded on June 1, 2001 as Document No. 2001- 00057980 in the Official Records

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2 1925263.2
of Solano County, California; and (iii) that certain Memorandum of Agreement dated May 31, 2001, executed by the Agency and Developer and recorded on June 1, 2001 as Document No. 2001-00057983 in the Official Records of Solano County, California; and (iv) that certain Memorandum of Agreement dated October 7, 2004, executed by the Agency, and Green Valley Land LLC, a Delaware Limited Liability Company (“Developer’s First Assignee”), and Green Valley Building 1, LLC, a Delaware Limited Liability Company (“Developer’s Second Assignee”) and recorded on October 12, 2004 as Document No. 200400143816 in the Official Records of Solano County, California; and (v) that certain Memorandum of Agreement dated March 2, 2011, executed by the Agency and Developer’s First Assignee and recorded on March 3, 2001 as Document No. 201100019496 in the Official Records of Solano County, California; and (vi) that certain Memorandum of Agreement dated January 18, 2018, executed by the Agency and Developer’s First Assignee and recorded on April 21, 2022 as Document No. 202200029063 in the Official Records of Solano County, California; and (vii) that certain Memorandum of Agreement dated April 22, 2022, executed by the Agency and Developer’s First Assignee and recorded on April 29, 2022 as Document No. 202200031183 in the Official Records of Solano County, California, and re- recorded on May 5, 2022 as Document No. 202200032852 in the Official Records of Solano County, California (collectively, the “Amendments to the Agreement”).

B. The Agreement provides, in general, for the Developer to acquire, in phases, certain real property from the Agency and develop and construct a business complex therein. The phases of acquisition generally are documented in the Amendments to the Agreement.

C. The Agency has determined that the Agreement and Amendments to the Agreement are no longer of any force and effect due to the fact that the Agreement has expired and the duties and obligations have been satisfied such that there exists no further responsibility on behalf of the Agency.

NOW, THEREFORE, the Agency hereby agrees as follows:

That the Agreement has expired and the Amendments to the Agreement have no outstanding conditions and are fulfilled and therefore the Agency hereby quitclaims and terminates all interest it has or had in or to the Property through any of the recorded documents including (i) that certain Memorandum of Agreement dated February 16, 1999, executed by the Agency and Developer and recorded on February 18, 2000 as Document No. 2000- 00013446 in the Official Records of Solano County, California (“the Agreement”); an d (ii) that certain Memorandum of Agreement dated May 31, 2001, executed by the Agency and Developer and recorded on June 1, 2001 as Document No. 2001-00057980 in the Official Records of Solano County, California; and (iii) that certain Memorandum of Agreement dated May 31, 2001, executed by the Agency and Developer and recorded on June 1, 2001 as Document No. 2001- 00057983 in the Official Records of Solano County, California; and (iv) that certain Memorandum of Agreement dated October 7, 2004, executed by the Agency, and Green Valley Land LLC, a Delaware Limited Liability Company (“Developer’s First Assignee”), and Green Valley Building 1, LLC, a Delaware Limited Liability Company (“Developer’s Second Assignee”) and

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3 1925263.2
recorded on October 12, 2004 as Document No. 200400143816 in the Official Records of Solano County, California; and (v) that certain Memorandum of Agreement dated March 2, 2011, executed by the Agency and Developer’s First Assignee and recorded on March 3, 2001 as Document No. 201100019496 in the Official Records of Solano County, California; and (vi) that certain Memorandum of Agreement dated January 18, 2018, executed by the Agency and Developer’s First Assignee and recorded on April 21, 2022 as Document No. 202200029063 in the Official Records of Solano County, California; and (vii) that certain Memorandum of Agreement dated April 22, 2022, executed by the Agency and Developer’s First Assignee and recorded on April 29, 2022 as Document No. 202200031183 in the Official Records of Solano County, California, and re- recorded on May 5, 2022 as Document No. 202200032852 in the Official Records of Solano County, California.

IN WITNESS WHEREOF, the Agency has executed this Termination as of the date first set forth above.

SUCCESSOR AGENCY TO THE

FAIRFIELD REDEVELOPMENT

AGENCY,
a public body, politic and corporate

David Gassaway, Executive Director

ATTEST:

Karen Rees, City Clerk

APPROVED AS TO FORM:

Office of the City Attorney

City Attorney

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1925263.2

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Agenda Item No: N.1

AGENDA REPORT
DATE: April 1, 2025

TO: Mayor and Council

FROM: David Gassaway, City Manager

SUBJECT: Resolution 2025-48 PW Amendment #1 to the Memorandum of Understanding for Cost-Sharing of the Lopes Road and Water Pipeline Reconstruction

Approving Amendment #1 to the Memorandum of Understanding Amendment #1 Between the City of Fairfield and the City of Benicia for Cost-Sharing of the Lopes Road and Water Pipeline Reconstruction Project and Authorizing the City Manager to Execute the Amendment on Behalf of the City

Funding Source: N/A

Contact: Jason Riley, (707) 428-7481

RECOMMENDED ACTION
Adopt resolution.

STATEMENT OF ISSUE
During the winter storms in 2023, the hillside along Lopes Road became saturated and caused a landslide that significantly damaged a section of Lopes Road, a City of Fairfield 30 -inch potable water pipeline , and a 36 -inch City of Benicia raw water pipeline. The City is working collaboratively with the Federal Emergency Management Agency (F EMA), Federal Highway Administration (FHWA), California Office of Emergency Services (Cal OES), and the City of Benicia to reconstruct the damaged critical infrastructure. Adoption of the proposed resolution executes Amendment #1 to the Memorandum of Understanding (MOU) between the City of Fairfield and the City of Benicia establishing project cost sharing between the agencies for design, environmental clearance/permitting, and construction engineering/inspection, with shared construction items allocated as 75% to be paid by the City of Fairfield and 25% to be paid by the City of Benicia.

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DISCUSSION
During the winter storms, the hillside along Lopes Road became saturated and caused a landslide that significantly damaged a section of Lopes Road, a City of Fairfield 30 -inch potable water pipeline, and a 36-inch City of Benicia raw water pipeline. Both Cities declared local emergencies to se ek assistance from the State and Federal governments. In late March 2023, Governor Newsom announced that the White House approved the State’s request for federal assistance to support local response and recovery efforts. On June 9, 2023, Solano County was added to the list of counties eligible for disaster-related assistance from Cal OES and FEMA. In August 2024, it was determined that only the roadway portion of the project is ineligible for FEMA reimbursement and may be reimbursable through FHWA. An application for the roadway portion has been submitted to FHWA for consideration.

The Cities of Fairfield and Benicia experienced water pipeline and roadway damage and shared the need to repair the infrastructure and stabilize the adjacent hillside slope. The Cities have worked collaboratively to execute an MOU for efficient project delivery. Through this process, Public Works staff from each City formed a project delivery team that meets weekly to discuss project progress. FEMA and Cal OES staff regularly attend these meetings for assistance. The team developed the MOU to memorialize cost-sharing and delivery obligations.

As the design consultants advanced the plans for the Lopes Road and Water Pipeline Reconstruction Project (Project), they developed a 35% cost estimate that serve s as the foundation for determining the cost -sharing arrangement between Fairfield and Benicia. To allocate expenses, staff meticulously reviewed each line item in the estimate, examining the scope and specifics of the work invo lved. Exhibit B, attached to Amendment #1, establishes the estimated cost -sharing agreement. Staff mutually agreed that the cost -sharing for soft -costs, which include design, environmental clearance/permitting, and construction engineering and inspection, are allocated 75% to be paid by the City of Fairfield and 25% to be paid by the City of Benicia. This ratio is established based on estimated construction costs for each agency.

The City of Fairfield and the City of Benicia will each submit for FEMA rei mbursement for their respective items, as outlined in the MOU.

The cities are actively working to obtain FEMA authorization on the proposed mitigation of performing deep soil mixing between the hill landslide and the proposed permanent pipeline repairs. On March 14, 2025, the city sent a formal letter and supporting te chnical documents to FEMA requesting their concurrence that the mitigation measures are justified and fundable under the Federal Disaster Declaration FEMA DR -4699-CA (Project Number 733116). Given the uncertain prospect of obtaining FEMA funding, staff may return to the City Council at a later date with a funding plan that includes the utilization of local resources.

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FINANCIAL IMPACT
Approval of Amendment #1 has no financial action. Staff will return to the council once the engineering design is complete to award the construction contract and amend the project funding, as necessary.

PUBLIC CONTACT/ADVISORY BODY RECOMMENDATION
The City of Benicia approved the memorandum on February 18, 2025.

ALTERNATIVE ACTION
The council may choose not to approve Amendment #1 . However, that alternative is not recommended to minimize delay in reconstructing Lopes Road and the City’s 30” potable water pipeline, which are critical infrastructure within the city.

COORDINATED WITH
City Attorney’s Office and Finance

STAFF CONTACT
Jason Riley, Assistant City Engineer
(707) 428-7481
[email protected]

ATTACHMENTS
Attachment 2: Proposed Resolution
Attachment 3: Proposed MOU Amendment #1
Attachment 4: Exhibit A to First Amendment to MOU
Attachment 5: Exhibit B to First Amendment to MOU

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CITY OF FAIRFIELD

RESOLUTION NO. 2025-48

APPROVING AMENDMENT #1 TO THE MEMORANDUM OF UNDERSTANDING BETWEEN THE

CITY OF FAIRFIELD AND THE CITY OF BENICIA FOR COST-SHARING OF THE LOPES ROAD AND

WATER PIPELINE RECONSTRUCTION PROJECT AND AUTHORIZING THE CITY MANAGER TO

EXECUTE THE AMENDMENT ON BEHALF OF THE CITY

WHEREAS, a portion of Lopes Road within the City of Fairfield and a 30 -inch City of Fairfield potable water pipeline were damaged by heavy rainstorms and a subsequent landslide beginning on March 28, 2023; and

WHEREAS, the City of Benicia’s 36-inch raw water transmission pipeline along Lopes Road in the City of Fairfield was also damaged by the same landslide; and

WHEREAS, on April 4, 2023 , the City Council ratified a Proclamation Existence of a Local Emergency issued by the city manager on March 31, 2023, as the director of emergency services in accordance with Government Code Section 8558(c) after finding that conditions of extreme peril to the safety of persons and property had arisen in the city, caused by severe hillside slope failure along Lopes Road caused by storm event flooding and stormwater runoff; and

WHEREAS, Lopes Road was closed to all traffic and remains closed until permanent repair of the roadway, water pipelines, and appurtenances are complete; and

WHEREAS, permanent reconstruction of the roadway and water pipelines is the next step to ensure the safety, functionality, and well-being of the community; and

WHEREAS, the City of Fairfield will collaborate with the City of Benicia on the Lopes Road and Water Pipeline Reconstruction Project (Project), as both Cities experienced water pipeline damage in the same area and have a shared need for repair of the roadway, hillside slope, and water pipelines; and

WHEREAS, on February 6, 2024, the council approved a Memorandum of Understanding (MOU) between the City of Fairfield and the City of Benicia to provide for collaboration in sharing costs and resources in accordance with California law and leveraging Federal Emergency Management Agency (FEMA) grant opportunities; and

WHEREAS, an amendment to the MOU is recommended to amend project cost-sharing between the cities . The cost sharing for soft costs (design, environmental clearance/permitting, construction engineering/inspection) and shared construction items are allocated 75% to be paid by the City of Fairfield and 25% to be paid by the City of Benicia; and

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RES. NO. 2025-48

Page 2 ends

WHEREAS, the City of Fairfield will be the lead agency and will administer contracts for design and construction, including permitting, environmental and geotechnical; and

WHEREAS, the City of Fairfield will submit invoices to the City of Benicia for reimbursement based upon the cost-sharing ratio generally set at 75% to be paid by Fairfield and 25% to be paid by Benicia unless specifically modified as provided in Amendment #1 to the MOU; and

WHEREAS, the City of Fairfield and the City of Benicia will submit reimbursement requests to FEMA for their respective expenses, as outlined in the MOU.

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

Section 1. The city manager is hereby authorized and directed to execute Amendment #1 to the MOU between the City of Fairfield and the City of Benicia for cost-sharing of the Project costs on behalf of the City of Fairfield.

Section 2. The city manager is hereby authorized to do all things necessary to implement the above-mentioned Amendment #1 to the MOU.

PASSED AND ADOPTED this 1st day of April 2025, by the following vote:

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

NOES: MEMBERS:

ABSENT: MEMBERS:

ABSTAIN: MEMBERS:

______________________________________________________
MAYOR

ATTEST:

____________________________

CITY CLERK

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4909-3250-7407 v1

FIRST AMENDMENT TO MEMORANDUM OF UNDERSTANDING

BETWEEN CITY OF FAIRFIELD AND CITY OF BENICIA

FOR COST SHARING FOR THE LOPES ROAD AND WATER PIPELINE
RECONSTRUCTION PROJECT (FEMA DR-4699-CA)

This First Amendment to Memorandum of Understanding (“First Amendment”) is effective as of _________________, 202 5 (“Effective Date”), and is between the City of Fairfield, a California municipal corporation (“ Fairfield”), and the City of Benicia , a California municipal corporation (“Benicia”). Fairfield and Benicia are referred to individually as “Party” and collectively as the “Parties.”

RECITALS
A. Effective December 19, 2023, Fairfield and Benicia entered into a Memorandum of Understanding (“MOU”) regarding cost sharing for the Lopes Road Pipeline Reconstruction Project (“Project”) related to a failure in Lopes Road that broke Benicia’s 36 -inch raw water transmission line and Fairfield’s 30 -inch potable water line, in addition to other underground utilities and other issues. A copy of the MOU is attached hereto as Exhibit A.

B. Section 4 of the MOU provides for the basis of Cost Sharing under the MOU, providing, in part, that at the time of the MOU the details and the costs of the Project were unknown; an d that the Parties may “include this information once determined in a future amendment to the MOU.”
C. Section 12 of the MOU also provides that the “MOU may be amended by written agreement by both Parties, subject to applicable laws and regulations.

D. As of the time of this First Amendment, the details and costs of the Project are better known and the Parties have agreed to cost sharing ratios for the Project. The purpose of this First Amendment is to adopt this further cost sharing agreement.

AGREEMENT
Amendment to Section 4a of the MOU. Section 4a of the MOU is amended and restated as follows:
“a. The Parties have agreed to share project costs as described in Exhibit B to this First Amendment, subject to further written amendments to this Agreement, if any. Among other costs as set out in Exhibit B, the cost sharing ratio for soft costs (design, environmental clearance/permitting, and construction engineering/inspection) are allocated 75% to be paid by Fairfield and 25% to be paid by Benicia.”
Remainder of the MOU’s Terms Unchanged. Subject to the foregoing amendment, the remainder of the terms in the MOU will remain the same and are hereby ratified by the Parties.

Authority to Execute. Each Party represents and warrants that all necessary action has been taken by such Party to authorize the undersigned to execute this First Amendment and to bind the Parties to the performance of its obligations.

Counterparts, Facsimile or other Electronic Signatures. This First Amendment may be executed in several counterparts, each of which will be deemed an original, and all of which, when taken together, constitute one and the same instrument. The First Amendment will be

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4909-3250-7407 v1
considered executed when th e signature of a party is delivered by facsimile or other electronic transmission. Such facsimile or other electronic signature will have the same effect as an original signature.
[Signatures on the following page.]

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4909-3250-7407 v1

CITY OF FAIRFIELD

David Gassaway, City Manager

Approved as to form:

City of Fairfield, City Attorney

CITY OF BENICIA

Mario Giuliani, City Manager

Approved as to form:

City of Benicia, City Attorney

Page 22 of 247 ends

DocuSign Envelope ID: 56D43390- E32C- 4754- BF83- EC87619587FE

MEMORANDUM OF UNDERSTANDING BETWEEN CITY OF FAIRFIELD AND CITY OF BENICIA FOR COST SHARING OF. LOPES ROAD PIPELINE RECONSTRUCTION PROJECT
This Memorandum of Understanding for Cost Sharing (" MOU") is entered into on this 19th day of December, 2023, (" Effective Date") by and between the CITYOFFAIRFIELD, a municipal corporation Fairfield"), and the CITY OF BENICIA, a municipal corporation,(" Benicia"), collectively referred to as the Parties."

RECITALS
WHEREAS, in mid -March 2023, the hillside west of Lopes Road along Interstate 680 in Fairfield became saturated from a series of winter rainstorms, causing a failure in Lopes Road that broke Benicia's 36-inch raw water transmission line and Fairfield' s 30-inch potable water line, in addition to other underground utilities;
WHEREAS, Fairfield' s Public Works crews responded to remove mud and debris, and both Fairfield and Benicia declared local emergencies in order to seek assistance from the State and Federal government; WHEREAS, in late March 2023, Governor Newsom announced that the White House approved the State' s request for federal assistance to support local response and recovery efforts; WHEREAS, on June9, 2023, SolanoCounty was added to the list of counties eligible for disaster related assistance from the State and the Federal Emergency Management Agency (" FEMA"); WHEREAS, both Fairfield and Benicia recognize the importance of maintaining and repairing critical infrastructure, includingpipelines, to ensurethe safety, functionality, andwell-beingof their respective communities;
WHEREAS, Fairfield and Benicia have identified a shared need for repair of the slope and Lopes Road, and reconstruction of Benicia's raw water transmission line and Fairfield's potable water line, including designand construction, within their jurisdictions, to addressexistingand potential hazardsandto improve infrastructure resilience (collectively, the " Work" or the " Project"); WHEREAS, Fairfield assisted Benicia in reestablishing Benicia's water supply which hassince been mostly restored through multiple temporary bypasswater lines, which will remain in place until permanent repairs can be made to the hillside, roadway, and underground utilities, and which is intended to remain in continuous operation throughout the Project duration; WHEREAS, Beniciapaid directly for designand installation of the temporary bypasswater linesand such costs are not included in this MOU;
WHEREAS, designfor all permanent repairs isdependent on existingsoil conditions and iscurrently being studied;
WHEREAS, the Parties wish to collaborate on this infrastructure project, sharing costs and resources, in accordancewith California law and leveragingFEMAgrant opportunities to enhancefunding;

Page 23 of 247 ends

DocuSign Envelope ID: 56D43390- E32C- 4754- BF83- EC87619587FE WHEREAS, the Parties recognize that cost sharing the project is mutually beneficial to both parties; WHEREAS, the Parties intend that the Project will be designed to minimize any impact to Benicia' s temporary bypasswater lines; and
WHEREAS, the Parties intend to complete the Project by October 31, 2024, avoiding Benicia' s exposure of temporary water lines to a second winter season.

WHEREAS, the Parties have agreed to a Term Sheet for cost sharing for the Project, attached hereto as Exhibit A.

NOW, THEREFORE, in consideration of the premises and covenants contained herein, Fairfield and Benicia agree as follows:
1) Recitals. The Parties acknowledge that the Recitals above are true and correct and are hereby incorporated into this MOU as if fully set forth below. 2) Fairfield Obligations. Fairfield shall be responsible for the following:
a. Secure and manage the design consultant through a selection process mutually agreed upon by the Parties. Design services will include the design of Benicia's reconstructed 36-inch raw water transmission line (approximately 800 linear feet), the design of Fairfield' s reconstructed 30-inch potable water line, and the design of LopesRoad reconstruction and slope stabilization.
b. Timely review of design submittals.
c. Construction bid advertisement, award, contract administration and management, and construction inspection.
d. Facilitate inspection coordination between the Parties. e. Secure and manage geotechnical and geological investigation consultant. f.. Secure and manage environmental consultant.
g. Secure permits for the Work.
h. Seek maximum reimbursement from FEMA and the State, and claim all consultant preliminary engineering and construction costsfor FEMAreimbursement with the exception of City of Benicia Construction Bid Items, defined below. i. Prepare a grant deed including the plat and legal description and issue an easement to Benicia for the reconstructed 36- inch raw water transmission line within Fairfield' s Lopes Road right of way.

Page 24 of 247 ends

DocuSign Envelope ID: 56D43390- E32C- 4754- BF83- EC87619587FE Pay "City of Fairfield Construction Bid Items," defined as including but not limited to the following:
i. Retaining wall and appurtenant items
ii. Roadway excavation
iii. Class 2 aggregate base
iv. Hot mix asphalt
V. Embankment and related items
vi. Subdrains
vii. Roadway drainage
viii. Guard railing
viv. Signing and striping
VV. 30" potable water line
The City of Fairfield will pay for these items directly and will seek maximum reimbursement from FEMA and the State. Such items will not be included in the cost sharing between the Parties.
3) Benicia Obligations. Benicia shall be responsible for the following:
a. Timely review of Project design, geotechnical, and environmental submittals. b. Timely review and reimbursement of cost share.
c. Claim City of Benicia Construction Bid Items for FEMA reimbursement. d. PayCity of Fairfield for City of Benicia's share of the " Shared Construction Bid Items," defined as including but not limited to the following:
i. Mobilization
ii. Construction staking
iii. Construction area signs
iv. Traffic control system
V. Water pollution control
vi. Preparation of water pollution control
vii. Temporary wildlife exclusion fence
viii. Temporary erosion control measures
viv. Hydroseed
VV. Permanent erosion control
vvi. Four - strand barbed wire fence
e. PayCity of Fairfield for " City of BeniciaConstruction Bid Items," defined as including but not limited to the following:
i. Removal of temporary bypasswater lines and manifolds (portion) ii. Purchase and installation of 36" raw water main
iii. Removal of fill for temporary bypass water lines

Page 25 of 247 ends

DocuSign Envelope ID: 56D43390- E32C- 4754- BF83- EC87619587FE iv. Relocation of temporary bypass water lines as needed to accommodate the Project
f. PayCity of Fairfield for City of Benicia's share of the preliminary engineering costs including permitting.
g. PayCity of Fairfield for the cost to prepare the grant deed and easement documents for the 36" raw water line realignment in City of Fairfield right of way. h. Provide existing grant deed easementsfor the City of Benicia's raw water transmission lines to the City of Fairfield for the purpose of preparing the new easement documents. 4) Basis of Cost Sharing.
a. At the time of this MOU, the details and costs of the Project are unknown. The Parties' respective costs for Shared Construction Bid Items shall be shared based on the percentage of work performed on behalf of each Party in comparison to the total Shared Construction Bid Items. The Parties may include this information once determined in a future amendment to this MOU.
b. Design and construction costs for the Project will be billed to Fairfield, and Fairfield will submit invoices to Benicia for reimbursement based upon the cost share ratio to be determined once the total details and costs of the Project are completed. c. Any changesto the means of calculating cost sharing for Shared Construction Bid Items may be modified in writing with the Parties' mutual consent. d. The Parties shall cost share any design contract amendments and construction contract change orders provided that such changesare mutually beneficial to the Parties. e. The Parties shall cost share all fees for geotechnical and geological investigation, environmental clearance and permitting.
5) Legal and Regulatory Compliance. The Parties shall ensure that all aspects of the Project, including designand construction, comply with California law and regulations, aswell as any applicable federal requirements.
6) Notice. Any notices which any party may desire to give to another party under this MOU must be in writing and may be given either by (i) personal service, (ii) delivery by a reputable document delivery service, suchas but not limited to FederalExpress, that providesa receipt showingdate and time of delivery; or (iii) mailing in the United States Mail, certified mail, postage prepaid, return receipt requested, addressedto the address of the party as set forth below or at any other address as that party may later designate by Notice:

Page 26 of 247 ends

DocuSign Envelope ID: 56D43390- E32C- 4754- BF83- EC87619587FE To Fairfield: City of Fairfield
1000 Webster Street
Fairfield, California 94533
Attention: City Manager
To Benicia: City of Benicia
250 E L Street
Benicia, California 94510
Attention: City Manager
7) Enforcement. If any party fails to comply with any of the covenants herein and does not cure such failure upon twenty ( 20) days' written notice from another party, it shall be lawful for the other party to prosecute any proceedingsat law or equity againstthe party breachingsuchcovenants. 8) Entire Agreement. This MOU contains the entire understanding between the Parties relating to the obligations of the Parties relating to the subject matter hereof. 9) Applicable Law/Venue. The laws of the State of California shall govern the rights, obligations, duties and liabilities of the parties to this MOU and also govern the interpretation of this MOU. Any litigation concerningthis MOU shall take place in the superior court of the County of Solano. 10) Attorneys' Feesand Costs. In the event litigation is filed with respect to this MOU, the prevailing party shall be entitled to reasonableattorneys' fees and litigation expensesand the court may determine.
11) Modification. No modification, waiver or discharge of this MOU shall be valid unless the same is in writing and signed by the party against which the enforcement of such modification, waiver or discharge is or may be sought.
12) Amendments: This MOU may be amended by written agreement of both Parties, subject to applicable laws and regulations.
13) Further Assurances. Each party shall take all actions reasonably necessary to implement the terms of this MOU.
14) Assignment. No party shall have the right to assign this MOU, without the prior written consent of the other party.
15) Counterparts. This MOU may be executed in two or more fully or partially executed counterparts, each of which will be deemed an original binding the signer thereof against the other signing party, but all counterparts together will constitute one and the same instrument. 16) Time of Essence. Time is of the essence of this MOU. 17) No Waiver. No waiver of any of the provisions of this MOU shall be deemed, or shall constitute, a waiver of any other provision, whether or not similar, nor shall any waiver constitute a continuing waiver, nor shall a waiver in any instance constitute a waiver in any subsequent instance. No waive shall be binding unlessexecuted in writing by the party making the waiver.

Page 27 of 247 ends

DocuSign Envelope ID: 56D43390- E32C- 4754- BF83- EC87619587FE 18) Authority. The parties each represent and warrant to the other party that the execution and delivery of this MOUand the performance of their respectiveobligations hereunder havebeen duly authorized by all necessaryaction and this MOU constitutes legal, valid and binding obligations, subject to equitable principles and principles governing creditors' rights generally. 19) Duration: This MOU shall remain in effect until the completion of the Project, including any post -construction activities, or until terminated by written agreementof both Parties.

Signature page to follow.]

Page 28 of 247 ends

DocuSign Envelope ID: 56D43390- E32C- 4754- BF83- EC87619587FE IN WITNESSWHEREOF, the parties hereto, acting by and through their duly authorized representatives, havecaused this MOU to be executed asof the day and year first written above.

CITY OF FAIRFIELD, CITY OF BENICIA,
a municipal corporation a municipal corporation
DocuSigned by:
4ario4.4 6 ilxuau.
i9FA3174A98 490..

David Ga saway L(3 0 r-l" VZ"/- Nn rlu Ianl
City Manager / grcnniti AAT/ tAwA-haA- City Manager
1/ 12/ 2024
Date
I Date
Approved as to form:

Davi' ( G. Llw
City of Fairfield, City Attorney
Approved as to form:

DocuSigned by:
6- 1& CFori3294F30FOAD74E3..

City of Benicia, City Attorney

Page 29 of 247 ends

DocuSign Envelope ID: 56D43390- E32C- 4754- BF83- EC87619587FE

EXHIBIT A
Term Sheet
Fairfield Obligations
Secure and manage design consultant through a selection process mutually agreed upon by Fairfield and Benicia. Designservices will include design of the reconstructed 36" City of Benicia raw water transmission line (approximately 800 linear feet) and design of the reconstructed 30" City of Fairfield potable water line, design of LopesRoadreconstruction and slope stabilization.

Timely review of designsubmittals
Construction bid advertisement, award, contract administration & management, and construction inspection.

Facilitate inspection coordination between agencies
Secure and manage geotechnical & geological investigation consultant Secure and manage environmental consultant
Secure permits for the work
Claim all consultant preliminary engineering and construction costs for FEMA reimbursement with exception of City of Benicia Construction Bid Items (listed below) Prepare grant deed including plat and legal description and issuean easement to City of Benicia for reconstructed 36" raw water transmission line within City of Fairfield's Lopes Road right of way.

Seek maximum reimbursement from FEMA and State for consultant preliminary engineering and construction costs.

Benicia Obligations
Timely review of Project design, geotechnical, and environmental submittals Timely review and reimbursement of cost share
Claim City of BeniciaConstruction Bid Items for FEMAreimbursement PayCity of Fairfield for City of Benicia's share of the SharedConstruction Bid Items PayCity of Fairfield for City of BeniciaConstruction Bid Items PayCity of Fairfield for City of Benicia's share of the preliminary engineering costs including permitting
PayCity of Fairfield for cost to prepare grant deed and easement documents for 36" raw water line realignment in City of Fairfield right of way.

Provide existing grant deed easements for the City of Benicia's raw water transmission lines to City of Fairfieldfor purpose of preparing the new easement documents.

Basis of Cost Sharing
Changesto the means of calculating cost -sharing can be modified with both parties' mutual consent
Agencycosts will be calculated basedupon the local agency FEMAgrant match amounts required for the project

Page 30 of 247 ends

DocuSign Envelope ID: 56D43390- E32C- 4754- BF83- EC87619587FE Costshare mitigation work mutually beneficial to both agencies Construction costs for shared bid items ( i. e. mobilization... see below for list) will be shared based on the percentages of work items for each agency compared to the total construction costs exclusive of the shared bid items
Cost share design contract amendments and construction contract change orders mutually beneficial to both agencies
Cost share geotechnical & geological investigation, environmental clearance and permitting Design and construction costs will be billed to Fairfield. Fairfield will submit invoices to Benicia for reimbursement based on cost share
Project Goals:

Complete construction by October 31, 2024 avoiding City of Benicia's exposure of temporary waterlines to a second winter season.

Ensurecontinuous operation of the City of Benicia's waterline bypassthrough the project area throughout the Project duration. Designof Project shall value minimizing impacts to the City of Benicia' s temporary waterline bypass.

At the time of this MOU, the details of the project to repair the slide, Lopes Roadand the impacted utilities including the City of Benicia raw water transmission line is unknown. The following is a guide for the respective agency's responsibility for potential construction contract items associated with the Project.

Example Shared Construction Bid Items:

Mobilization
Construction staking
Construction area signs
Traffic control system
Water pollution control
Prepare water pollution control
Temporary wildlife exclusion fence
Temporary erosion control measures
Hydroseed
Permanent erosion control
4 strand barbed wire fence
ExampleCity of Fairfield Construction Bid Items
Retaining wall and appurtenant items
Roadway excavation
Class 2 aggregate base
Hot mix asphalt
Embankment and related items
Subdrains

Page 31 of 247 ends

DocuSign Envelope ID: 56D43390- E32C- 4754- BF83- EC87619587FE .

Roadway Drainage
Guard railing
Signing and striping
30" potable water line
ExampleCity of BeniciaConstruction Bid Items
Remove temporary bypass waterlines and manifolds ( portion) Purchase and installation of 36" raw water main -
Remove fill for temporary bypasswaterlines
Relocation of temporary bypasswaterlines as needed to accommodate Project

Page 32 of 247 ends

ESTIMATED

QUANTITY
UNIT

PRICE AMOUNT

ESTIMATED

QUANTITY
UNIT

PRICE AMOUNT

ESTIMATED

QUANTITY
UNIT

PRICE AMOUNT

ESTIMATED

QUANTITY
UNIT

PRICE AMOUNT

ESTIMATED

QUANTITY
UNIT

PRICE AMOUNT

ESTIMATED

QUANTITY
UNIT

PRICE AMOUNT
1 066013A CONSTRUCTION STAKING LS 1 7,500$ 7,500$ 0 7,500$ 0.00$ 1 8,500$ 8,500$ 1 8,500$ 8,500$ 1 1,500$ 1,500$ 1 1,500$ 1,500$ 27,500$ 2 070030 LEAD COMPLIANCE LS 1 6,000$ 6,000$ 0 6,000$ 0.00$ 0 0.00$

0.00$
0 0.00$

0.00$
6,000$

3 120090 CONSTRUCTION AREA SIGNS LS 1 1,650$ 1,650$ 0 1,650$ 0.00$ 1 1,650$ 1,650$ 1 2,200$ 2,200$ 0 0.00$

0.00$
0 0.00$

0.00$
5,500$

4 120100 TRAFFIC CONTROL SYSTEM LS 1 7,000$ 7,000$ 0 7,000$ 0.00$ 1 7,000$ 7,000$ 1 6,000$ 6,000$ 0 0.00$

0.00$
0 0.00$

0.00$
20,000$
5 130100 JOB SITE MANAGEMENT LS 1 5,000$ 5,000$ 0 13,500$ 0.00$ 1 6,500$ 6,500$ 1 6,500$ 6,500$ 1 2,000$ 2,000$ 1 2,000$ 2,000$ 22,000$ 6 130300 PREPARE STORM WATER POLLUTION PREVENTION PLAN LS 1 2,500$ 2,500$ 0 5,250$ 0.00$ 1 2,750$ 2,750$ 1 2,750$ 2,750$ 0 0.00$

0.00$
0 0.
00$

0.00$
8,000$

7 130xxx IMPLEMENT STORM WATER POLLUTION PREVENTION PLAN LS 1 5,000$ 5,000$ 0 10,750$ 0.00$ 1 5,750$ 5,750$ 1 5,750$ 5,750$ 0 0.00$

0.00$
0 0.00$

0.00$
16,500$
8 146002 CONTRACTOR-SUPPLIED BIOLOGIST (LS) LS 0 0.00$ 0.00$ 0 10,000$ 0.00$ 1 8,000$ 8,000$ 1 8,000$ 8,000$ 1 2,000$ 2,000$ 1 2,000$ 2,000$ 20,000$ 9 160110 TEMPORARY HIGH-VISIBILITY FENCE LF 0 10$ 0.00$ 0 10$ 0.00$ 675 10$ 6,750$ 675 10$ 6,750$ 0 10$ 0.00$ 0 10$ 0.00$ 13,500$ 10 170103 CLEARING AND GRUBBING LS 0 60,000$ 0.00$ 0 60,000$ 0.00$ 1 60,000$ 60,000$ 1 105,000$ 105,000$ 0 0.00$

0.00$
0 0.00$

0.00$
165,000$
11 170xxx DEEP EXCAVATION CY 0 30$ 0.00$ 0 30$ 0.00$ 0 30$

0.00$
0 30$

0.00$
-$

12 170xxx TEMPORARY EXCAVATION (BENCH FOR SOIL MIXING) CY 0 50$ 0.00$ 0 50$ 0.00$ 0 50$

0.00$
0 50$

0. 00$
975 50$
48,750$ 325 50$
16,250$ 65,000$
13 190101 ROADWAY EXCAVATION CY 1836 120$ 220,320$ 0 120$ 0.00$ 0 120$

0.00$
0 120$

0.00$
0 120$ 0.00$ 0 120$ 0.00$ 220,320$
14 208688 PVC PIPE CONDUIT LF 0 150$ 0.00$ 0 150$ 0.00$ 3400 150$ 510,000$ 0 150$

0.00$
0 150$

0.00$
510,000$
15 210350 FIBER ROLLS LF 900 5.00$ 4,500$ 0 5.00$ 0.00$ 3150 5.00$ 15,750$ 3150 5.00$
15,750$ 0 5.00$

0.00$
0 5.00$

0.00$
36,000$
16 210430 HYDROSEED SF 0 0.20$ 0.00$ 0 0.20$ 0.00$ 51525 0.20$ 10,305$ 51525 0.20$
10,305$ 0 0.20$

0.00$
0 0.20$

0.00$
20,610$
17 260203 CLASS 2 AGGREGATE BASE CY 1500 190$ 285,000$ 0 190$ 0.00$ 0 190$ 0.00$ 0 190$ 0.00$ 0 190$ 0.00$ 0 190$ 0.00$ 285,000$ 18 390132 HOT MIX ASPHALT (TYPE A) TON 800 350$ 280,000$ 0 350$ 0.00$ 0 350$ 0.00$ 0 350$ 0.00$ 0 350$ 0.00$ 0 350$ 0.00$ 280,000$ 19 394075 PLACE HOT MIX ASPHALT DIKE (TYPE D) LF 400 25$ 10,000$ 0 25$ 0.00$ 0 25$ 0.00$ 0 25$ 0.00$ 0 25$ 0.00$ 0 25$ 0.00$ 10,000$ 20 398200 COLD PLANE ASPHALT CONCRETE PAVEMENT SQYD 65 275$ 17,875$ 0 275$ 0.00$ 0 275$ 0.00$ 0 275$ 0.00$ 0 275$ 0.00$ 0 275$ 0.00$ 17,875$ 21 650018 24" REINFORCED CONCRETE PIPE LF 400 330$ 132,000$ 0 330$ 0.00$ 0 330$ 0.00$ 0 330$ 0.00$ 0 330$ 0.00$ 0 330$ 0.00$ 132,000$ 22 681501 FURNISH AND INSTALL DRAIN PIPE (HORIZONTAL DRAIN)(DEEP EXCAV) LF 0 40$ 0.00$ 0 40$ 0.00$ 0 40$ 0.00$ 0 40$ 0.00$ 0 40$ 0.00$ 0 40$ 0.00$ -$ 23 681501 FURNISH AND INSTALL DRAIN PIPE (HORIZONTAL DRAIN)(SOIL MIXING) LF 0 120$ 0.00$ 0 120$ 0.00$ 0 120$ 0.00$ 0 120$ 0.00$ 1125 120$ 135,000$ 375 120$ 45,000$ 180,000$ 24 703575 24" WELDED STEEL PIPE (.250" THICK) LF 0 835$ 0.00$ 0 835$ 0.00$ 0 835$ 0.00$ 60 835$ 50,100$ 0 835$ 0.00$ 0 835$ 0.00$ 50,100$ 25 703598 30" WELDED STEEL PIPE (.250" THICK) LF 0 900$ 0.00$ 0 900$ 0.00$ 800 900$ 720,000$ 0 900$ 0.00$ 0 900$ 0.00$ 0 900$ 0.00$ 720,000$ 26 703618 36" WELDED STEEL PIPE (.250" THICK) LF 0 990$ 0.00$ 0 990$ 0.00$ 0 990$ 0.00$ 1000 990$ 990,000$ 0 990$ 0.00$ 0 990$ 0.00$ 990,000$ 27 705206 24" CONCRETE FLARED END SECTION EA 2 4,000$ 8,000$ 0 4,000$ 0.00$ 0 4,000$ 0.00$ 0 4,000$ 0.00$ 0 4,000$ 0.00$ 0 4,000$ 0.00$ 8,000$ 28 710136 REMOVE PIPE (LF) LF 0 60$ 0.00$ 0 60$ 0.00$ 785 60$ 47,100$ 1,355 60$ 81,300$ 0 60$ 0.00$ 0 60$ 0.00$ 128,400$ 29 721420 CONCRETE (DITCH LINING) CY 40 2,500$ 100,000$ 0 2,500$ 0.00$ 0 2,500$ 0.00$ 0 2,500$ 0.00$ 0 2,500$ 0.00$ 0 2,500$ 0.00$ 100,000$ 30 77xxxx 36" FLANGED BUTTERFLY VALVE EA 0 37,500$ 0.00$ 0 37,500$ 0.00$ 0 37,500$ 0.00$ 1 37,500$ 37,500$ 0 37,500$ 0.00$ 0 37,500$ 0.00$ 37,500$ 31 77xxxx 24" FLANGED BUTTERFLY VALVE EA 0 25,000$ 0.00$ 0 25,000$ 0.00$ 0 25,000$ 0.00$ 4 25,000$ 100,000$ 0 25,000$ 0.00$ 0 25,000$ 0.00$ 100,000$ 32 77xxxx CONNECT TO EXISTING 30" WATERMAIN LS 0 200,000$ 0.00$ 0 200,000$ 0.00$ 1 200,000$ 200,000$ 0 200,000$ 0.00$ 0 200,000$ 0.00$ 0 200,000$ 0.00$ 200,000$ 33 77xxxx CONNECT TO EXISTING 36" WATERMAIN LS 0 100,000$ 0.00$ 0 100,000$ 0.00$ 0 100,000$ 0.00$ 1 100,000$ 100,000$ 0 100,000$ 0.00$ 0 100,000$ 0.00$ 100,000$ 34 77xxxx 30" FORCED BALANCED FLEX EXPANSION COUPLING WATERLINE EA 0 250,000$ 0.00$ 0 250,000$ 0.00$ 0 250,000$ 0.00$ 0 250,000$ 0.00$ 2 250,000$ 500,000$ 0 250,000$ 0.00$ 500,000$ 35 77xxxx 36" FORCED BALANCED FLEX EXPANSION COUPLING WATERLINE EA 0 300,000$ 0.00$ 0 300,000$ 0.00$ 0 300,000$ 0.00$ 0 300,000$ 0.00$ 0 300,000$ 0.00$ 2 300,000$ 600,000$ 600,000$ 36 77xxxx CATHODIC PROTECTION LS 0 100,000$ 0.00$ 0 100,000$ 0.00$ 1 100,000$ 100,000$ 1 100,000$ 100,000$ 0 100,000$ 0.00$ 0 100,000$ 0.00$ 200,000$ 37 810230 PAVEMENT MARKER (RETROREFLECTIVE) EA 54 10$ 540$ 0 10$ 0.00$ 0 10$ 0.00$ 0 10$ 0.00$ 0 10$ 0.00$ 0 10$ 0.00$ 540$ 38 832006 MIDWEST GUARDRAIL SYSTEM (STEEL POST) LF 260 100$ 26,000$ 0 100$ 0.00$ 0 100$ 0.00$ 0 100$ 0.00$ 0 100$ 0.00$ 0 100$ 0.00$ 26,000$ 39 846007 6" THERMOPLASTIC TRAFFIC STRIPE (ENHANCED WET NIGHT VISIBILITY) LF 3480 10$ 34,800$ 0 10$ 0.00$ 0 10$ 0.00$ 0 10$ 0.00$ 0 10$ 0.00$ 0 10$ 0.00$ 34,800$ 40 xxxxxx UTILITY VAULT (11x9) EA 0 10,000$ 0.00$ 0 10,000$ 0.00$ 0 10,000$ 0.00$ 0 10,000$ 0.00$
0 10,000$ 0.00$
1 10,000$ 10,000$ 10,000$
41 xxxxxx UTILITY VAULT (23x22) EA 0 50,000$ 0.00$ 0 50,000$ 0.00$ 0 50,000$ 0.00$ 0 50,000$ 0.00$
0 50,000$ 0.00$
2 50,000$ 100,000$ 100,000$
42 xxxxxx SLOPE GRADING (LANDSLIDE - SOIL MIXING) CY 0 50$ 0.00$ 0 50$ 0.00$ 0 50$

0.00$
0 50$

0.00$
15,000 50$
750,000$ 5,000 50$
250,000$ 1,000,000$
43 xxxxxx CEMENT DEEP SOIL MIXING CY 0 150$ 0.00$ 0 150$ 0.00$ 0 150$ 0.00$ 0 150$ 0.00$ 6,000 150$ 900,000$ 2,000 150$ 300,000$ 1,200,000$ 44 xxxxxx DISPOSAL OF DRILLING WASTE (ON-SITE) CY 0 10$ 0.00$ 0 10$ 0.00$ 0 10$

0.00$
0 10$

0.00$
2400 10$
24,000$ 800 10$
8,000$ 32,000$
45 999990 MOBILIZATION LS 1 128,187$ 128,187$ 0 0.00$ 0.00$ 1 426,331$ 426,331$ 1 315,298$ 315,298$ 1 26,258$ 26,258$ 1 14,831$ 14,831$ 910,905$ SUBTOTAL 1,281,872$ -$ 2,136,386$ 1,951,703$ 2,389,508$ 1,349,581$ 9,109,050$ INDIVIDUAL CONSTRUCTION COST 1,282,000$ -$ 2,137,000$ 1,952,000$ 2,390,000$ 1,350,000$ 9,110,000$ COMBINED CONSTRUCTION COST 9,111,000$

FAIRFIELD BENICIA TOTAL
1,282,000$ -$ 1,282,000$
2,137,000$ 1,952,000$ 4,089,000$
2,390,000$ 1,350,000$ 3,740,000$
5,809,000$ 3,302,000$ 9,111,000$

WATERLINE REPAIRS (FEMA)

FUTURE MITIGATION

BENICIA

FEMA - WATER LINE COSTS FEMA - MITIGATION COSTS

ROADWAY REPAIRS (FHWA)

FAIRFIELD BENICIA FAIRFIELD BENICIA FAIRFIELD
TOTAL
1,282,000$ 4,089,000$ 3,740,000$
LOPES ROAD AND WATER PIPELINE RECONSTRUCTION PROJECT (FEMA DR-4699-CA)

CITY OF FAIRFIELD DEPARTMENT OF PUBLIC WORKS
35% CONSTRUCTION COST ESTIMATE - DEEP SOIL MIXING
COF/COB Revised 1/8/25
No.

BID
ITEM No. BID ITEM DESCRIPTION

UNIT OF

MEASURE

FHWA - ROADWAY COSTS

COMBINED
AMOUNT
PAGE 1 OF 1
Docusign Envelope ID: 49ECE00A-EC79-430E-A4D9-78518B70532DPage 33 of 247 Agenda Item No: N.2

AGENDA REPORT
DATE: April 1, 2025

TO: Mayor and Council

FROM: David Gassaway, City Manager

SUBJECT: Resolution 2025 -49 PW Fairfield Adaptive System Traffic Signal Improvement Project Acceptance

Accepting the Fairfield Adaptive System Traffic Signal Improvement Project, Federal Aid Project No. HSIPL-5132(050) as Complete

Funding Source: N/A

Contact: Roger Dunham, (707) 428-7478

RECOMMENDED ACTION
Adopt resolution.

STATEMENT OF ISSUE
The adoption of the resolution accepts the Fairfield Adaptive System Traffic Signal Improvement Project, Federal Aid Project No. HSIPL-5132(050) (Project) as complete.

DISCUSSION
On August 15, 2023, the City adopted Resolution No. 2023-212 approving a contract with Bear Electric Solutions, Inc. (BER) to install adaptive system traffic signal (ASTS) improvements at 16 signalized intersections located along Travis Boulevard and North Texas Street. ASTS optimizes traffic flow by changing the signal timing in accordance with real-time traffic patterns, as opposed to the traditional practice of collecting weeks’ worth of traffic data.

The construction authorization for the Project was approved for $4,065,050. This amount included a total bid of $3,695,500 and a 10% contingency of $369,550. One change order was executed during construction for the Project, resulting in a total contract adjustment of $6,775.

This change order was completed to add a TS Crossing at the Gateway Boulevard, 2nd Street, and Travis Boulevard intersection, and add a BBS Foundation at the intersection of Woodcreek and Travis Boulevard. The final cost of the Project was $3,697,025, which is 9.05% below the amount authorized for construction.

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Following the council’s acceptance of the Project as complete, a notice of completion will be filed with the County of Solano’s Recorders Office.

FINANCIAL IMPACT
Ongoing maintenance of the ASTS will be managed by the Public Works Operations Division and will be funded by the General Fund (Fund 101).

PUBLIC CONTACT/ADVISORY BODY RECOMMENDATION
N/A

ALTERNATIVE ACTION
If the council has any questions, acceptance may be delayed so that staff may provide the necessary additional information.

COORDINATED WITH
N/A

STAFF CONTACT
Roger Dunham, Public Works Construction Manager
(707) 428-7478
[email protected]

ATTACHMENTS
Attachment 2: Proposed Resolution

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CITY OF FAIRFIELD

RESOLUTION NO. 2025-49

ACCEPTING THE FAIRFIELD ADAPTIVE SYSTEM TRAFFIC SIGNAL IMPROVEMENT PROJECT, FEDERAL AID PROJECT NO. HSIPL-5132(050) AS COMPLETE

WHEREAS, the City Council approved a contract with Bear Electric Solutions, Inc. (BES) for the Fairfield Adaptive System Traffic Signal Improvement Project, Federal Aid Project No. HSIPL - 5132(050) (Project) on August 15, 2023, by Resolution No. 2023-212; and

WHEREAS, BES has completed the Project in accordance with the contract approved by council.

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

Section 1. The City hereby accepts the Project as complete pursuant to the agreement between the City and BES approved by the council on August 15, 2023.

PASSED AND ADOPTED this 1st day of April 2025, by the following vote:

_________________________________________________
MAYOR
ATTEST:
___________________________

CITY CLERK

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Agenda Item No: N.3

AGENDA REPORT
DATE: April 1, 2025

TO: Mayor and Council

FROM: David Gassaway, City Manager

SUBJECT: Ordinance 2025 -03 PD Amending Chapter 12.800, Section 12.804 Infraction to Misdemeanor

Amending Chapter 12.800, Section 12.804, Changing Any Violation of the Ordinance from an Infraction to a Misdemeanor

Funding Source: N/A

Contact: Daniel Marshall, (707) 428-7366

RECOMMENDED ACTION
Provide second reading and adopt Ordinance 2025-03.

STATEMENT OF ISSUE
Currently, the penalty for violating Fairfield Municipal Code (FMC) 12.800—Camping and Storage of Personal Property is an infraction. To encourage accountability and access to services for our unhoused population, City staff seeks to amend the ordinance to make any violation a misdemeanor.

DISCUSSION
On January 24, 2025, during the recent City Council Retreat, it was proposed that the city’s camping ordinance be amended to classify violations as misdemeanors . The City Council requested that this suggestion be brought to a council meeting for further discussion and decision.

For many years, the Police Department has utilized the Camping and Storage of Personal Property ordinance. However, we have faced challenges in achieving meaningful accountability and resolution of these cases. Historically, violations are often dismissed or sent to financial collections, with very few ever reaching the courtroom. This lack of resolution has made enforcement difficult, as there is no clear record of the original citation disposition, preventing us from charging a misdemeanor for repeat offenses.

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With the introduction of the Community Assistance Recovery Empowerment (CARE) Court and the recent passage of Proposition 36, we now have additional tools to support individuals struggling with severe mental health or substance use disorders, helping them access housing, and exit homelessness. By making camping violations a misdemeanor, we can create another important tool in our efforts to assist the unhoused population while encouraging accountability.

As the number of individuals experiencing homelessness grows, so does the number of areas where people camp or store personal property. This amendment will help curb that increase by ensuring accountability for those who repeatedly violate the ordinance.

The proposed ordinance would amend FMC 12.804 to reflect:

The first vViolations of this Article shall be an infraction punishable by a fine not exceeding $100. The second and each subsequent violation of this Article within a one -year period, may be prosecuted as a misdemeanor, punishable by a fine not exceeding $1000 or by imprisonment in the county jail not to exceed six months, or by both such fine and imprisonment. (Ord. 2001-05, § 6.)

Under the proposed misdemeanor classification, officers will still have the discretion to issue a warning, citation, or, if necessary, make an arrest. Regardless of the enf orcement action taken, officers will continue to provide resource information to those affected, ensuring that enforcement is paired with opportunities for support and housing.

FINANCIAL IMPACT
N/A

PUBLIC CONTACT/ADVISORY BODY RECOMMENDATION
N/A

ALTERNATIVE ACTION
The council may choose not to adopt the attached ordinance.

COORDINATED WITH
City Attorney’s Office

STAFF CONTACT
Daniel Marshall, Chief of Police
(707) 428-7366
[email protected]

ATTACHMENTS
Attachment 2: Proposed Ordinance

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CITY OF FAIRFIELD

ORDINANCE NO. 2025-03

AMENDING CHAPTER 12.800, SECTION 12.804, CHANGING ANY VIOLATION OF THE

ORDINANCE FROM AN INFRACTION TO A MISDEMEANOR

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

SECTION 1. Section 12.804 of Chapter 12.800 is hereby modified to the Fairfield City Code to read as follows:

12.804 Violations.

Violations of this Article shall be a misdemeanor, punishable by a fine not exceeding $1000 or by imprisonment in the county jail not to exceed six months, or by both such fine and imprisonment.

SECTION 2. This Ordinance shall be effective 30 days fo llowing 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.

INTRODUCED at a regular meeting of the City Council of the City of Fairfield on the 18th day of March 2025, and

PASSED AND ADOPTED this 1st day of April 2025, by the following vote:

_________________________________________________
MAYOR
ATTEST:
___________________________

CITY CLERK

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Agenda Item No: N.4

AGENDA REPORT
DATE: April 1, 2025

TO: Mayor and Council

FROM: David Gassaway, City Manager

SUBJECT: Resolution 2025-50 CM Memorandum of Understanding with Solano County and Solano Land Trust

Authorizing Execution of a Memorandum of Understanding with the County of Solano and the Solano Land Trust for Pass-Through of Funding from Fairfield Community Facilities District #2 (North Cordelia Open Space) Regarding Funding for Patwino Worrtla Kodoi Dihi Open Space Park

Funding Source: Community Facilities District #2 (North Cordelia Open Space)

Contact: David Gassaway, (707) 428-7400

RECOMMENDED ACTION
Approve resolution.

STATEMENT OF ISSUE
The City of Fairfield (City), County of Solano (County), and Solano Land Trust (SLT ) tentatively agreed to enter into a Memorandum of Understanding (MOU) to improve efficiency and formalize a process for the pass through of special tax revenues from Community Facilities District #2 - North Cordelia Open Space (CFD #2) to SLT for the maintenance and preservation of open space in the Patwino Worrtla Kodoi Dihi Open Space Park (Patwino Park).

DISCUSSION
In 1989, the City established CFD #2 for the purpose of financing the acquisition of land within the Green Valley area for public open space or recreation and for the maintenance of such lands.

Subsequently, the City, County, and SLT entered into an Open Space Agreement, dated October 16 ,1990, to transfer special tax proceeds from CFD #2 to SLT to acquire, own and maintain open space land in the Green Valley area. The Open Space Agreement also included funding from the County to SLT for the same purposes as CFD #2.

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In 2011 and 2012, SLT acquired land in the County to develop the Patwino Park open space area.

In 2023, the county and SLT entered into an agreement in which the County agreed to provide maintenance, operations, and management support to SLT for Patwino Park.

Historically, SLT has submitted formal requests to both the City and County to release funding for the acquisition of the open space lands for Patwino Park. Now that Patwino Park is developed and operating, SLT would be required to annually prepare a formal funding request to submit to both the City and County separately, who would then each require funding authorization from City Council and County Board of Supervisors. This process is cumbersome for all parties involved.

To improve the efficient request and transfer of funds for annual operations and maintenance of Patwino Park, the parties negotiated an MOU (Attachment 3) to clearly identify an administrative process for the annual pass-through of eligible funding for CFD #2 from the City and funding from the County.

The MOU stipulates that the parties will cooperatively prepare an annual budget by April 30 of each year, the County will invoice SLT for operations and maintenance services of Patwino Park by October 15 of each year, and SLT will invoice the City for CFD #2 funding by November 15 annually. SLT must account for CFD #2 funds separately and provide a report to the City by September 30 of each year. The term of the MOU continues through July 25, 2033, unless amended, terminated, or extended by all parties.

FINANCIAL IMPACT
CFD #2 (Fund 326) has a fund balance of $2,726,642, with annual assessment revenue estimated at around $600,000. Annual funding to SLT is based on annual operational costs for Patwino Park.

PUBLIC CONTACT/ADVISORY BODY RECOMMENDATION
N/A

ALTERNATIVE ACTION
The council may deny authorization of the MOU. Doing so will maintain the status quo of annual funding requests from SLT in an inefficient manner.

COORDINATED WITH
City Attorney’s Office, Finance Department, County of Solano, and Solano Land Trust

STAFF CONTACT
David Gassaway, City Manager
(707) 428-7400
[email protected]

ATTACHMENTS
Attachment 2: Proposed Resolution
Attachment 3: Proposed Memorandum of Understanding

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CITY OF FAIRFIELD

RESOLUTION NO. 2025-50

AUTHORIZING EXECUTION OF A MEMORANDUM OF UNDERSTANDING WITH THE COUNTY OF

SOLANO AND THE SOLANO LAND TRUST FOR PASS-THROUGH OF FUNDING FROM FAIRFIELD COMMUNITY FACILITIES DISTRICT #2 (NORTH CORDELIA OPEN SPACE) REGARDING FUNDING

FOR PATWINO WORRTLA KODOI DIHI OPEN SPACE PARK

WHEREAS, in 1989, the City established the City of Fairfield Community Facilities District #2 (North Cordelia Open Space) (CFD #2) for the purpose of financing the acquisition of land within the Green Valley area for public open space or recreation, the maintenance of public open space, and the administrative fees of the City related to CFD #2; and

WHEREAS, in 1990, the County est ablished the Green Valley Open Space Maintenance District (GVOS Maintenance District ), pursuant to the Landscaping and Lighting Act of 1972 (California Streets and Highways Code Section 22500 et seq.), in order to levy annual assessments to finance the acquisition and maintenance of open space lands in the Green Valley area; and

WHEREAS, pursuant to an Open Space Agreement, dated October 16, 1990 ( 1990 Agreement), between the City, th e County, and the Solano Land Trust ( SLT), the County agreed to transfer assessment proceeds from the GVOS Maintenance District to the City for the acquisition and maintenance of open space and administrative expenses related thereto. In addition, the City agreed to transfer special tax proceeds from CFD #2 to SLT to acquire, own, and maintain open space land in the Green Valley area. SLT agreed to acquire , own, and manage the open space land; and

WHEREAS, in 2011 and 2012, SLT acquired real property situated in the County of Solano, known as the Patwino Worrtla Kodoi Dihi Open Space Park (formerly Rockville Trails Preserve) (Patwino Park) (Solano County Assessor Parcel Numbers 0153 -080-120, 110, 130, 100 and 0153 -060-060 and 070). Patwino Park is located across Rockville Road from the City’s Rockville Hills Park; and

WHEREAS, SLT has requested the County’s assistance in providing operations and management services related to public access to Patwino Park. Pursuant to an agreement, dated as of July 25, 2023, between SLT and the County ( Patwino Management Agreement ), the County agreed to provide park operations and management in support of public access to Patwino Park; and

WHEREAS, to ensure efficiency and establish a standard process for SLT to request funds from the City and County; and for the County to invoice SLT ; the City, County, and SLT agreed that a three-party Memorandum of Understanding (MOU) was the best means to document the agreed upon approach.

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RES. NO. 2025-50

Page 2 ends

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

Section 1. Authorizes the city manager, or their designee, to execute the MOU (attached) and to take all other actions as may be necessary to implement same.

PASSED AND ADOPTED this 1st day of April 2025, by the following vote:

_________________________________________________
MAYOR
ATTEST:
___________________________

CITY CLERK

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1 MEMORANDUM OF UNDERSTANDING REGARDING FUNDING

FOR PATWINO WORRTLA KODOI DIHI OPEN SPACE PARK
This Memorandum of Understanding (“MOU”), dated a s of _______, 2025, is made by and between the County of Solano (“County”), a political subdivision of the State of California, the City of Fairfield (“City”), a municipal corporation, and the Solano Land Trust (formerly known as the Solano County Farmlands and Open Space Foundation) (“ SLT”), a California nonprofit public benefit corporation. City, County and SLT are sometimes hereafter referred to individually as “Party” and collectively as “Parties”.

RECITALS
In 1989, the City established the City of Fairfield Community Facilities District No. 2 (North Cordelia Open Space) (“CFD #2”) for the purpose of fi nancing the acquisition of land within the Green Valley area for public open space or recreation, the maintenance of public open space, and the administrative fees of the City related to CFD #2.

In 1990, the County established the Green Valley Open Space Maintenance District (the “GVOS Maintenance District”), pursuant to the Landscaping and Lighting Act of 1972 (California Streets and Highways Code Section 22500 et seq.), in order to levy annual assessments to finance the acquisition and maintenance of open space lands in the Green Valley area.

Both CFD #2 and the GVOS Maintenance District funds are limited to be used in the Green Valley Area, which is defined in the 1990 Agreement (defined below) to mean “… generally, that area bounded by Suisun Valley Road on the east, Interstate 80 and State Highway 12 on the south, and a line in the ridgetops to the north and west.” This ridgetop line was later defined to be the border between Solano County and Napa County.

Pursuant to an Open Space Agreement, dated October 16, 1990 (the “1990 Agreement”), between the City, the County, and SLT, the County agreed to transfer assessment proceeds from the GVOS Maintenance District to the City for the acquisition and maintenance of open space and administrative expenses related thereto. In addition, the City a greed to transfer special tax proceeds from CFD #2 to SLT to ac quire, own and maintain open space land in the Gre en Valley area. SLT agreed to acquire and own and manage the open space land.

In 2011 and 2012, SLT acquired real property situated in the County of Solano, known as the Patwino Worrtla Kodoi Dihi Open Space Park (formerly Rockville Trails Preserve) (“ Patwino Park”) (Solano County Assessor Parcel Numbers 0153-080-120, 110, 130, 100 and 0153-060-060 and 070). Patwino Park is located across Rockville Road from the City’s Rockville Hills Park.

Patwino Park was purchased in part with grant funds from the California State Coastal Conservancy, with the condition that SLT preserve Patwino Park as open space and provide nondiscriminatory public access, pursuant to an “ Agreement to Provide Public Access, Preserve OpenSpace and to Qualify Nonprofit Organization for Limited Public Entity Tort Immunity.”

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2 SLT has requested the County’s assistance in providing operations and management services related to public access to Patwino Park. Pursuant to an agreement, dated as of July 25, 2023, between SLT and the County (the “Patwino Management Agreement”), the County agreed to provide park operations and management in support of public access to Patwino Park. The term of the Patwino Management Agreement is 10 years (from July 25, 2023 through July 25 2033), unless extended or terminated pursuant to the terms thereof. The County may charge parking and/or day use fees to help offset County costs related to Patwino Park. However, the main source of funds for operations and manage ment by the County will be from CFD #2 and GVOS Maintenance District funds.

The City, County and SLT wish to document a process for budgeting, invoicing, and reporting the use of CFD #2 and GVOS Maintenance District Funds.

NOW, THEREFORE, based on the recitals set forth above, the Parties hereby agree as follows:

SCOPE OF AGREEMENT
Section 1. Annual budget and invoicing process
A. Annually, by April 30 th, the City, SLT and the County will cooperatively prepare, and provide to the City, the annual budget for the upcoming fiscal year , beginning with Fiscal Year 2024-25.

County Inv oice to SLT. Annually, by October 15 th or soon thereafter , the County will invoice SLT for amounts needed to operate and maintain Patwino Park public access for the full 12-month period. SLT shall pay such amount to County by the following January 15th (the amount of 50% of the balance) and on May 15th (the remaining 50% of the balance).

SLT invoice to City. Annually, by November 15th, SLT will provide notice (and an invoice) to the City, with payment by the City to SLT by the following December 15th (the amount of 50% of the balance) and on April 15th (the remaining 50% balance).

Section 2. Reporting process
SLT Reports to City . SLT will hold the CFD #2 and GVOS Maintenance District funds in separate accounts and keep detailed accounting records of expenditures. SLT expects to use a portion of these funds to cover County costs for Patwino Park public access operations , and a portion will cover SLT’s volunteer and nature-based program management, administrative costs, and equipment replacement. SLT agrees to allow periodic inspection/audit by the City ’s auditor and the County Auditor-Controller. SLT will provide annual reports to the City by September 30th of each year in a format mutually agreed to by SLT and the City.

County Reports to SLT. The County will hold the funds in a separate account and keep detailed accounting records of expenditures. County will provide an annual report to SLT by

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3 September 1st of each year of all expenditures, including but not limited to, revenue, expenses, administrative charges and remaining balance, if applicable, as well as visitor usage data.

Section 3. Term
The term of this MOU shall commence upon execution of this MOU by all Parties and shall continue through July 25, 2033, unless extended or earlier terminated by all P arties in writing .

This MOU is intended to have a term that coincides with the term of the Patwino Management Agreement. If the County and SLT extends or terminates the Patwino Management Agreement pursuant to its terms, SLT shall notify the City of such extension or termination, and the Par ties hereto shall use their best efforts to extend or terminate this MOU to coincide with the term of the Patwino Management Agreement term.

Section 4. Notices
Any notice required or permitted to be sent to each Party shall be sent by e-mail or regular mail, addressed as follows:

Solano Land Trust
198 Dobbins Street, Suite A
Vacaville, CA 95688
Attention: Executive Director
Phone: 707-432-0150
E-mail: [email protected]

City of Fairfield
1000 Webster Street
Fairfield, CA 94533
Attention: City Manager
Phone: 707-428-7400
E-mail: [email protected]

County of Solano
675 Texas St., Suite 6500
Fairfield, CA 94533
Phone: (707) 784-6100
E-mail: [email protected]

Section 5. Miscellaneous
A. Governing Law. The law governing this MOU shall be that of the State of California.

B. No Third Party Beneficiaries . This MOU is not intended nor shall it be construed to create any third-party beneficiary rights in any person or entity other than the Parties.

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4 C. No Assignment. The MOU is intended to be between the City, SLT and the County.

Neither Party may assign the MOU, or any portion of the MOU to another party.

D. C ounterparts . This MOU may be executed in one or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same non-binding instrument.

WITNESS THE EXECUTION HEREOF the day and year first hereinabove set forth.

CITY OF FAIRFIELD
By: _________________________________
Name: David Gassaway
Title: City Manager

COUNTY OF SOLANO
By: _________________________________
Name: William Emlen
Title: County Administrative Officer

SOLANO LAND TRUST,
a California nonprofit public benefit corporation
By: _________________________________
Name: Nicole Braddock
Title: Executive Director

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Agenda Item No: N.5

AGENDA REPORT
DATE: April 1, 2025

TO: Mayor and Council

FROM: David Gassaway, City Manager

SUBJECT: CM Minute Action Approving Street Naming to Honor Mary Louise Marsh

Funding Source: N/A

Contact: David Gassaway, (707) 428-7400

RECOMMENDED ACTION
Approve street naming honoring Mary Louise Marsh.

STATEMENT OF ISSUE
The City Council is being asked to approve the Honors Committee's recommendation to name a new street in remembrance of Mary Louise Marsh, a now-deceased citizen.

DISCUSSION
The applicant listed above is recommended for naming a new street by the Honors Committee , which consists of two councilmembers (Councilmembers Doug Carr and Manveer Sandhu) that the mayor appoints annually. T he recommendations were submitted to Mayor Catherine "Cat" Moy for consideration.

Mayor Moy agreed with the recommendations provided.

FINANCIAL IMPACT
N/A

PUBLIC CONTACT/ADVISORY BODY RECOMMENDATION
N/A

ALTERNATIVE ACTION
The council may choose not to approve the application for naming City facilities.

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COORDINATED WITH
N/A

STAFF CONTACT
David Gassaway, City Manager
(707) 428-7400
[email protected]

ATTACHMENTS
Attachment 2: Policy for Naming City Facilities, Donations, Sponsorships, and Capital Campaigns Attachment 3: Application – Marsh
Attachment 4: Vaccaro Street Naming Letter

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City of Fairfield

POLICY FOR NAMING CITY FACILITIES, DONATIONS,

SPONSORSHIPS, AND CAPITAL CAMPAIGNS

POLICY PURPOSE

This Policy establishes the process and criteria for the consideration of requests for the naming of City facilities, the process and criteria for the consideration of acceptance of donations, the process and criteria associated with sponsorships, and the establishment of capital campaigns.

POLICY STATEMENT – NAMING OF CITY FACILITIES

It is the policy of the City to provide a process for consideration of the naming of City facilities. As used in this policy and for the purposes of naming, “facility” or “ facilities” shall include all City - owned infrastructure such as streets, parks, and buildings or portions of any of those facilities.

Only new facilities or additions to facilities are eligible for naming.

Once named, no City facility shall be renamed.

The type, design, size, font, wording, placement, and other similar components of plaques, monuments, signs, etc. installed or placed at City f acilities shall be at the sole discretion of the City.

Pursuant to Government Code §34092, whenever the name of any street, park, or place is adopted or established by any city or other authority, the city clerk shall promptly forward a copy of the resolution, order, or other instrument providing for such new name or change of name or house number to the Solano County Board of Supervisors.

Naming Process

The process for naming a public facility will be as follows:

A. Timing of Naming. Facilities may only be named at the conclusion of any capital campaign raising funds for the facility or addition, even if the name of the facility does not result from that campaign. Facilities must be named sixty (60) days before public use.

B. Application Submittal. A naming application shall be submitted to the City Manager’s Office. The City Manager’s Office may prescribe the form and necessary components of the application, which may change over time or to best match each particular request.

C. Application Review. The City Manager’s office shall review the application and determine if it is complete and consistent with this Policy. Applications determined by the City Manager’s Office to be incomplete, without sufficient support, or that are otherwise inconsistent with this Policy will be returned to the applicant together with a written Packet Page 157 of 178Attachment 1 Page 1 of 6

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City of Fairfield Naming, Donation, Sponsorship, and Capital Campaign Policy

October 1, 2019 Page 2 of 6

explanation for the return. The applicant may resubmit the application at any time up to a total of two additional times with new or additional information to correct the insufficiencies.

If determined to be complete and consistent, city staff will prepare and present a staff report including a recommendation for City Council consideration during a City Council meeting.

D. Review by City Council. The City Council shall consider the a pplication and staff report and determine whether a City facility or portion thereof should be named. All naming decisions shall be at the sole discretion of the City Council.

Naming Criteria

Priorities in order of importance to be considered in naming City Facilities shall be as follows:

A. Historic Names. Names of historic events, groups, organizations, or persons at the local, regional, or national level of major significance with special consider ation given to Fairfield’s own history.

B. Places and Feature Names.

1. Recognizable area or neighborhood, e.g. “Rolling Hills .” Names that aid in locating a facility are acceptable. If the facility is located on a park or school site, the facility need not share the name of the park or school site.

2. Assumed Names. Assumed names should be used only if the area has been known by that assumed name for an extended period of time, e.g. the “Cordelia” area.

3. Theme Names. If a facility is located in an area with a s pecific theme, due consideration should be given to that theme.

4. Natural Phenomena. Natural phenomena, such as rivers, creeks, and terrain.

5. Horticultural Features. Horticultural features characteristic of a particular area.

6. Combination of horticultural and place.

C. Individuals, Groups, or Organizations. The following criteria will be used in evaluating the use of names of persons (whether living or deceased), groups, and organizations.

1. General Criteria. Names of groups, organizations , or persons, having a longstanding affiliation with the City of not less than ten (10) or more years of significant community service, involvement, or contributions beyond the ordinary interest level where efforts have:
a. Enhanced the quality of life and well-being of City residents; b. Contributed to the preservation of the City’s history or culture; c. Made exemplary or meritorious contributions to the City or its residents; and/or
d. Contributed to the acquisition, development, or conveyance of land, buildings, structures, or other amenities to the City or community.

2. Groups and Organizations. Facilities may be named after groups or organizations pursuant to the General Criteria.

3. Deceased Persons. To be considered for a naming opportunity, the individual must have been deceased for at least two (2) years. Such individuals may include:
a. Historic persons.
b. National and/or local heroes. Those who have given outstanding service to humankind or who have worked over and above any ordinary interest level. A resident of Fairfield who has attained local, Packet Page 158 of 178Attachment 1 Page 2 of 6

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City of Fairfield Naming, Donation, Sponsorship, and Capital Campaign Policy

October 1, 2019 Page 3 of 6

state, or national recognition for parks and recreation work or work in the areas of public safety or public health, as appropriate to the facility, would be highly acceptable.
c. No facility can be named after any City of Fairfield e mployee, except for those who died while on duty working for the City of Fairfield. d. Only one Facility may be named in honor of an individual.

4. Living Persons. Facilities will not be named after living persons unless associated with a capital campaign.

In addition, the following names should be avoided:

 Cumbersome, corrupted or modified names, profane, discriminatory or derogatory names relating to age, race, religion, creed, national origin, sex, color, marital status, disability, sexual orientation, political affiliation or other similar categories.  Names that cause confusion due to duplication or that sound too similar to existing named locations within the City or surrounding areas.
 Names of companies whose business is substantially derived from the s ale of alcohol, tobacco, cannabis, firearms, pornography, or other products or services considered unsuitable or inappropriate.
 The re-use of former facility names other than for a reconstruction of the same facility in the same location.
 Names that woul d result in the overt commercialization of City facilities unless in conjunction with a substantial subsidy of construction costs in conjunction with a capital campaign.
 Names that are overly recognized, either within the City or region.

Naming Costs

All costs of plaques, monuments, signs and the like resulting from naming will be borne by the individual, group, or organization requesting the name.

POLICY STATEMENT – DONATIONS

It is the policy of the City to provide a process for consideration of donations. As used in this policy, “donations” refer certain tangible objects such as benches , trees, cars, or artwork or the financial means for the city to acquire such objects. There is no expectation of an equal exchange of recognition or benefits commensurate with the value of the donation and there are no naming opportunities associated with the donation, although the City at its sole discretion may wish to recognize the donor or donor’s honoree at a City Council meeting and/or with a commemorative plaque at the location of the donation.

Donation Process

A. Application. A donation application shall be submitted to the City Manager’s Office. The City Manager’s Office may prescribe the form and necessary components of the application, which may change over time or to best match each particular request.

B. Review of Application. The City Manager’s Office shall revi ew the application and determine if it is complete and consistent with this Policy , including with the Acceptance Criteria. The City Manager’s Office will coordinate such review with or through another city Packet Page 159 of 178Attachment 1 Page 3 of 6

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City of Fairfield Naming, Donation, Sponsorship, and Capital Campaign Policy

October 1, 2019 Page 4 of 6

department or departments benefitting from the donation. The City Manager’s Office will return applications determined by to be incomplete or inconsistent with this Policy together with a written explanation for the return. The applicant may resubmit the application at any time up to a total of two addit ional times with new or additional information to correct the insufficiencies.

C. Acceptance of Donations. The City Manager’s Office may accept the donation if it is determined to be in compliance with this policy and as long as the donation also complies with other applicable city or state policies or laws governing gifts and donations. At the City Manager’s discretion, staff may present a recommendation about a particular donation to the City Council for the City Council to make the final determination to accept or reject a donation. The City reserves the right to reject any offer of donation if, upon review, acceptance of the donation is determined not to be in the best interest of the City.

Donation Acceptance Criteria

Appropriate City staff will review the acceptability of any donation and determine if the benefits to be derived warrant acceptance of the donation. Criteria for evaluation may include but are not limited to:

 The desirability or need for the donation.
 An analysis of any visual, functional, or land use impact of the donation.  An analysis of the make, model, and proposed location of the donation.  Consideration of any immediate or initial expenditure required of the City in order to accept the donation.
 The potential and extent of the City’s obligation to maintain the property or item donated, and the City’s available resources to do so now and in the future.  Whether the donation includes sufficient funding for installation and/or maintenance.  The community benefit derived from the donation.

Donations will not be accepted from:

 Companies that substantially derive their income from the sale of tobacco products, cannabis products, alcohol, pornography or other “adult” businesses, gambling or firearms  Any entity that will create a conflict of interest with the City  A business or other entity involved in a lawsuit/litigation with the agency  A business or other entity engaged in any stage of negotiation with the city for any purpose other than that for a sponsorship or capital campaign process

Following the Acceptance of Donations

Upon acceptance of donations, the City will assume ownership, control, and maintenance of any donation unless otherwise specified in a written agreement between the City and the donor. The City shall not be obligated to retain, repair or replace any donated object that is damaged or destroyed for any reason, such as by vandalism , theft, the effects of weather or time, or, in the case of live plants, if they die. The City reserves the right to remove and/or relocate any donated object at any time. However, if a donated object(s) needs to be removed and is in acceptable condition, the City will make a reasonable attempt to relocate the object(s), if a need for such object(s) exists at another City facility. When acknowledging donations, the acknowledgement language and signage shall conform to the relevant portions of the Naming of City Facilities Packet Page 160 of 178Attachment 1 Page 4 of 6

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City of Fairfield Naming, Donation, Sponsorship, and Capital Campaign Policy

October 1, 2019 Page 5 of 6

section of this policy. In addition, plaques, benches, trees, and other donated objects a re not intended to be a place of worship or an official gathering place.

POLICY STATEMENT – SPONSORSHIPS

It is the policy of the City to provide a process for sponsorships. As used in this policy , “sponsorships” are the financial, service, or in-kind contributions that will increase the City’s ability to deliver services, programs, scholarships, special events, and other similar non-tangible elements that further enhance, promote or support the goals of the City.

The City may offer sponsorship opportunit ies from time -to-time and may offer a mutually agreeable exchange of benefits with the exception that no Naming rights of facilities or tangible items covered by capital campaigns result from sponsorships. With the approval of City Council, sponsorships may result in a named scholarship or program that is designed to last five or more years. For named scholarships or programs lasting fewer than five years, the process below may be followed without City Council approval.

Sponsorship Process

With the approval of the City Manager, City staff may enter into customized, written sponsorships agreements with willing sponsors and provide sponsors with a level of benefit that is commensurate with their contribution. Types of sponsor benefits may include but are not limited to:
 Publicity including the display of a sponsor’s logo through City publications, the website, newsletters, flyers, brochures, and/or media releases.
 Marketing opportunities at special events or program sites.  Tangible benefits such as event admission or commemorative items such as plaques, a framed picture, or program or event shirts.
 Acknowledgement on printed materials such as recreation program.  Signage including the possibility of the inclusion of an individual's name or company name and logo on a fixed site for the period of time detailed in the sponsorship agreement. The following limitations apply to signage:
• Allowed signage and recognition display details, including type, location, size, design, content and duration of display is at the sole discretion of the City and will be a component of the sponsorship agreement.
• Words or characters likely to interfere with or mislead pedestrian or vehicular traffic, i.e. “stop,” “drive,” “danger” are prohibited.
• Reference or depiction of any obscene act, gesture or word is prohibited. • Depictions of the use of drugs or alcohol are prohibited. • Decision for signage placement will be performed with input from the relevant program/facility manager.

Sponsorship Criteria

 The City reserves the right to reject or terminate sponsorship agreements if, upon review, acceptance or continuance of the sponsorship is determined not to be in the best interest of the City or if the sponsor violates any terms of the agreement.  Sponsorship agreements will be for a defined period of time.

Packet Page 161 of 178Attachment 1 Page 5 of 6

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City of Fairfield Naming, Donation, Sponsorship, and Capital Campaign Policy

October 1, 2019 Page 6 of 6

 The City shall not be obligated to continue a program, event or scholarship beyond the parameters of any written agreement.
 Recognition of a sponsor shall not suggest in any way the endor sement of the sponsor's goods or services.
 Sponsorships shall not be made conditional based on the agency’s performance.  Individual sponsors will not limit agency’s ability to seek other sponsors unless mutually agreed upon by both the City and the sponsor.
 Sponsors are prohibited from unauthorized use of the City’s name or brand.  Sponsorships will not be accepted from:
• Companies that substantially derive their income from the sale of tobacco products, cannabis products, pornography or other “adult” businesses, gambling or firearms • Companies that substantially derive their income from the sale of alcohol when the sponsorship is primarily for programs, events, or other similar settings or occasions where the target audience is youth
• Any entity that will create a conflict of interest with the City • Any religious or political organization
• A business or other entity involved in a lawsuit/litigation with the agency • A business or other entity engaged in any stage of negotiation with the city for any purpose other than that for a sponsorship or capital campaign process

POLICY STATEMENT – CAPITAL CAMPAIGNS

It is the policy of the City to provide a process for capital campaigns.

The City may conduct capital campaigns from time- to-time to raise funds for city facilities as defined in the Naming portion of this policy or for tangible objects within cities facilities such as furniture, fixtures, appliances, scoreboards, playground equipment, and the like.

Capital campaigns or portions of capital campaigns that will result in the naming of new facilities as defined in the Naming portion of this policy , portions of those new facilities such as definable spaces or room s, or additions to facilities such as a new “wing” of a building, shall follow the Naming portion of this Policy at the conclusion of the capital campaign.

Capital campaigns or portions of capital campaigns that will result in the acquisition of tangible objects for City facilities will be designed and managed at staff level in accordance with all other State laws and City policies. Contributions may be accepted in accordance with all other components of this policy including, but not limited to, limitations on allowed cont ributors and recognition of contributors.

The City reserves the right to reject or return funds offered during capital campaigns if, upon review, acceptance of the donation is determined not to be in the best interest of the City.

Packet Page 162 of 178Attachment 1 Page 6 of 6

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April 19, 2024
To Whom It May Concern
City of Fairﬁeld:

I am wri�ng this leter of behalf of the Mary Marsh Family suppor�ng the eﬀort to get a public street named in her honor. I have known and worked with Mrs. Marsh for over thirty years. Sadly, Mary passed away last year a�er a full life and service to her community. She contributed and accomplished much in her ninety years. From the beginning, we had an instant connec�on during our mee�ngs and became fast friends.

I ﬁrst met Mary in the mid-nineteen nine�es as we both served on the Solano County Juvenile Jus�ce and Delinquency Commission. She supported troubled youths helping them make beter life decisions. She treated young people with dignity, respect, and compassion that all deserve even when mistakes are made.

She saw her interac�on with adolescents was an opportunity for a learning experience for them rather than a punishment. She was a leader on the Commission. She had enough energy for ten people. Whatever Mary set her mind to, we accomplished. Her love for at-risk youths and her devo�on to their success was an inspira�on to me.

Mary also worked for the Travis Uniﬁed School District (TUSD) for over twenty years. She was loved by staﬀ and students alike. Mary was a role model, impac�ng all she encountered. Her eﬀorts impacted students long a�er gradua�on. In fact, she created the Marsh Family Scholarship in partnership with the TUSD and the Assist-a Grad-Founda�on to provide a scholarship for deserving youth. That scholarship con�nues today. Her legacy has been carried on by her sons, Reggie and Rod Marsh.

Mary volunteered for countless city projects including cleaning up city parks and working the Tomato Fes�val.

She also con�nued to work on the Commitee to Protect Travis, a�er her husband re�red CMSGT Grady James Marsh, Jr. passed away in 2004. Mary also volunteered at Sullivan Middle School, where her son Reggie was principal.

Mary was involved in Fairﬁeld Women-in-Ac�on organiza�on and served on the Solano County Grand Jury.

Her �reless commitment and devo�on to civic causes led to her being chosen as the Grand Marshall of Fairﬁeld Fourth of July Parade in the early 2000s. I cannot think of anyone more deserving for this honor. If there was a commitee that could help Fairﬁeld, Mary wanted to be part of it. She loved the community she lived in which was evident through her hundreds of hours of community service throughout the years.

At her funeral, Mary was eulogized by former Mayor Fala�, Superior Coury Judge Ramona Garret and me.

Both the City Council mee�ng and Solano County Board of Supervisors mee�ng were adjourned in her honor.

It is without reserva�on that I recommend a street be named a�er Mary Marsh in the near future. She deserves to be honored by the city she loved and supported for decades.

Sincerely,

Rick Vaccaro

Fairﬁeld City Council

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Agenda Item No: O.1

AGENDA REPORT
DATE: April 1, 2025

TO: Mayor and Council

FROM: David Gassaway, City Manager

SUBJECT: CM Minute Action Approving the Mayor’s Appointments

Minute Action Approving Mayor’s Appointments to the Community Development Block Grant Advisory Committee, Landscape Oversight Committee, and Youth Commission

Funding Source: N/A

Contact: Esther Beavers, (707) 428-7402

RECOMMENDED ACTION
Approve appointments. Perform oath of office.

STATEMENT OF ISSUE
The City Council is being asked to approve the appointments as follows:

Community Development Block Grant Advisory Committee
Term January 1, 2025, to December 31, 2028
 Verna Brooks
 Elaine Clark
 DeAndre Richard
 Harriet Stricklen
 Tina Werblin

Landscape Oversight Committee
Term April 1, 2025, to April 1, 2030
 LeTroi Smith

Youth Commission
Term January 1, 2025, to December 31, 2026
 Lauren Dimaisip

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 Ariel He-Wang
 Cian Wilson

DISCUSSION
The Community Development Block Grant Advisory Committee serves four-year terms. The board’s terms are from January 1, 2025, through December 31, 2028.

The Landscape Oversight Committee serves five-year terms. The committee’s terms are from April 1, 2025, through April 1, 2030.

The Youth Committee serves two-year terms. The committee’s terms are from January 1, 2025, through December 31, 2026.

The applicants listed above were recommended for appointment, and the recommendations were submitted to Mayor Catherine "Cat" Moy for consideration.

Mayor Moy agreed with the recommendations provided.

FINANCIAL IMPACT
N/A

PUBLIC CONTACT/ADVISORY BODY RECOMMENDATION
N/A

ALTERNATIVE ACTION
The council may choose not to approve the mayor’s appointments, thereby leaving vacancies.

COORDINATED WITH
N/A

STAFF CONTACT
Esther Beavers, Deputy City Clerk
(707) 428-7402
[email protected]

ATTACHMENTS
N/A

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Agenda Item No: O.2

AGENDA REPORT
DATE: April 1, 2025

TO: Mayor and Council

FROM: David Gassaway, City Manager

SUBJECT: PW Increasing the Number of At-Large Landscape Oversight Committee Members

Discussion and Direction Regarding Increasing the Number of At-Large Landscape Oversight Committee Members

Funding Source: N/A

Contact: Chris Lewis, (707) 428-7089

RECOMMENDED ACTION
Receive report, open discussion, and provide direction to staff.

STATEMENT OF ISSUE
The Landscape Oversight Committee (LOC) consists of seven members - six members who each represent their respective council district area and one member at -large. The City Council Subcommittee to the LOC ( Subcommittee) requests the council to consider increas ing the number of at-large LOC members.

DISCUSSION
The LOC was established by Resolution No. 2023 -26 (Attachment 2) to provide oversight of the City’s Landscaping and Lighting Maintenance Districts and all landscaping areas funded by the General Fund.

In accordance with the LOC Guidelines and Duties detailed in Exhibit A of the Resolution, the LOC consists of seven members—six members who each represent their respective council district area and one member at-large.

The Committee currently has two vac ancies, as the members that represented District 2 and District 6 resigned in October 2024 and December 2024, respectively.

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LOC meetings are subject to the California Government Code 54950 et seq., also known as the Ralph M. Brown Act. In Section 54952.2 of the Act, it requires that a majority of members , also known as q uorum, be present “to hear, discuss, deliberate, or take action on any item that is within the subject matter jurisdiction” of the Committee.

Since the inception of the LOC in early 2023 , the Committee has scheduled a total of six regular meetings and two special meetings between November 2023 and February 2025. However, due to a lack of quorum, the April and July 2024 regular meetings were cancelled , and the October 2024 regular meeting was rescheduled to December 2024.

At the regular February 27, 2025 , LOC and Subcommittee joint meeting, members of both committees discussed their desire to increase the number of at -large LOC members. The stated primary goal of this action is to mitigate the quorum challenges the Committee experienced over the last year.

At the March 4, 2025, City Council meeting, Vice Mayor and Subcommittee Member Pam Bertani requested that a discussion to consider increasing the number of at-large LOC members be added to a future council agenda.

FINANCIAL IMPACT
N/A

PUBLIC CONTACT/ADVISORY BODY RECOMMENDATION
At the February 27, 2025, LOC meeting, the Committee recommended that the council hold a discussion to consider increasing the number of at-large LOC members.

ALTERNATIVE ACTION
The council may choose to request more information from staff or the LOC, direct staff to increase the number of at-large LOC members or take other related actions.

COORDINATED WITH
City Manager’s Office

STAFF CONTACT
Chris Lewis, Sr. Management Analyst
(707) 428-7089
[email protected]

ATTACHMENTS
Attachment 2: Resolution No. 2023-26

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Agenda Item No: O.3

AGENDA REPORT
DATE: April 1, 2025

TO: Mayor and Council

FROM: David Gassaway, City Manager

SUBJECT: PW Proposition 218 Balloting Process for L andscaping and Lighting Maintenance Districts

Discussion and Direction Regarding a Proposition 218 Balloting Process for Seven Landscaping and Lighting Maintenance Districts

Funding Source: N/A

Contact: Chris Lewis, (707) 428-7089

RECOMMENDED ACTION
Receive report, open discussion, and provide direction to staff.

STATEMENT OF ISSUE
The Landscape Oversight Committee (LOC) and the City Council Subcommittee to the LOC (Subcommittee) request that the council reconsider conducting another Proposition 218 balloting process for the seven Landscaping and Lighting Maintenance Districts (LLMDs) that did not approve the ballot for increased assessments in 2023.

DISCUSSION
In 2023, the City conducted a community engagement and balloting process in accordance with Article XIII D of the California Constitution (also known as Proposition 218) to increase assessment rates in nine LLMDs that were projected to have a structural budget deficit.

The ballot was passed by property owners in the Gateway and Paradise Valley communities resulting in the formation of LLMD s No. 2023-1 (Gateway) and No. 2023 -11 (Paradise Valley).

However, the ballot was not passed by property owners in the remaining seven LLMDs: No. 3 – Waterman, No. 5 – Smith Ranch (Rancho Solano), No. 6 – Peppertree, No. 7 – Rolling Hills, No. 8 – Kolob Estates, No. 12 – Downtown, and No. 13 – North Cordelia. As a result, services were reduced in these communities.

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Some property owners in these districts have expressed t heir concerns to the LOC and Subcommittee regarding the declining landscape and aestheti cs in their neighborhoods and desire another Proposition 218 balloting process to increase their assessment rates.

On January 25, 2025, at the annual City Council Retreat , the council directed staff to pause all LLMD Proposition 218 balloting efforts for these seven districts.

The LOC and Subcommittee held a joint meeting on February 27, 2025, at which 34 members of the public attended. Eight members from these communities submitted public comment cards and requested that the council reconsider the decision on January 25, 2025. The LOC and Subcommittee affirmed their support.

On the March 4, 2025, City Council meeting, Vice Mayor and Subcommittee Member Pam Bertani requested to reconsider the de cision agreed upon on January 25, 2025, to pause LLMD Proposition 218 balloting efforts for these seven districts to be added to a future Council agenda.

FINANCIAL IMPACT
N/A

PUBLIC CONTACT/ADVISORY BODY RECOMMENDATION
At the February 27, 2025, LOC meeting, the Committee recommended that the council hold a discussion to reconsider the January 25, 2025, decision to pause LLMDs Proposition 218 balloting efforts for the seven LLMDs.

ALTERNATIVE ACTION
The council may choose to request more information from staff or the LOC or take other related actions.

COORDINATED WITH
City Manager’s Office

STAFF CONTACT
Chris Lewis, Sr. Management Analyst
(707) 428-7089
[email protected]

ATTACHMENTS
N/A

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Agenda Item No: O.4

AGENDA REPORT
DATE: April 1, 2025

TO: Mayor and Council

FROM: David Gassaway, City Manager

SUBJECT: Resolution 2025-51 FN City of Fairfield Community Facilities District No. 2016 -1 Special Tax Bonds Issuance and Sale

Authorizing the Issuance and Sale of Special Tax Bonds for City of Fairfield Community Facilities District No. 2016-1 (Villages at Fairfield) with Respect to its Improvement Area B, and Approving and Authorizing Related Documents and Actions

Funding Source: N/A

Contact: John Furtado, (707) 428-7629

RECOMMENDED ACTION
Adopt resolution.

STATEMENT OF ISSUE
The council previously conducted proceedings under the Mello-Roos Community Facilities Act of 1982 (Mello -Roos Act) to form (i) “City of Fairfield Community Facilities District No. 2016 -1 (Villages at Fairfield)” (CFD 2016 -1) and (ii) “Improvement Area B of the City of Fairfield Community Facilities District No. 2016-1 (Villages at Fairfield)” (Improvement Area B).

The City is authorized to levy special taxes upon the land within Improvement Area B and issue bonds in the aggregate principal amount of $25,000,000 secured by the special taxes levied in Improvement Area B for financing certain public improvements (Authorized Facilities), al l as described in those proceedings. In 2019, the City issued $19,865,000 Improvement Area B of the City of Fairfield Community Facilities District No. 2016-1 (Villages at Fairfield) Special Tax Bonds, Series 2019A (the “2019 Bonds”), leaving remaining bond authorization for Improvement Area B of $5,135,000.

Staff recommends that the council adopt the attached resolution in order to authorize the issuance and sale of Special Tax Bonds, Series 2025A (the “2025A Bonds”) with respect to Improvement Area B in an amount not to exceed $5,000,000, and approve and authorize related

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documents an d actions, including the Preliminary Official Statement, Continuing Disclosure Certificate, First Supplement to Fiscal Agent Agreement, and Bond Purchase Agreement.

DISCUSSION
Background Information About the CFD and Improvement Area B; Development Agreem ent.

The property within the CFD is part of a larger development project that overlaps the CFD known as the “Villages at Fairfield” (the “ Villages at Fairfield ”). The Villages at Fairfield contains approximately 431 gross acres, divided into five separate developments (Villages I, II, III, IV, and Laurel Creek Plaza commercial center), and is currently approved and planned for 1,830 residential units and 22.2 acres of commercial, retail and mixed uses.

Rancho Tolenas Corporation, a California Corporation (the “Master Developer”), has acted as the master developer for the Villages at Fairfield and has sold and intends to sell the remaining portions of the Villages at Fairfield to merchant builders.

The property within the CFD is subject to development pursuant to a Second Amended and Restated Development Agreement, dated December 17, 2015 (as amended, the “Development Agreement”).

Development Status in Improvement Area B. Improvement Area B, designated as Village I, encompasses approximately 91.5 acres . The land within Improvement Area B has been developed by the following four builders, each of which acquired their property from the Master Developer (collectively, the “Merchant Builders”):

 Villages at Fairfield, LLC, a California limited liability co mpany, doing business as “Discovery Builders”, which has developed its property in Improvement Area B into a development known as “Avery at The Villages;”
 D.R. Horton BAY, Inc., a Delaware corporation (referred to in this Official Statement as “D.R. Horton ”), which has developed its property in Improvement Area B into a development known as “Iris at The Villages;”
 Richmond American Homes of Maryland, Inc., a Maryland corporation has developed its property in Improvement Area B into a development known as “L arkspur at The Villages;” and
 TRI Pointe Homes Holdings, Inc., a Delaware corporation has developed its property in Improvement Area B into a development known as “Lantana at The Villages.”

The development of Improvement Area B is now largely complete. As of January 22, 2025, 422 of the 432 single-family detached homes planned within Improvement Area B had been built and sold to individual homeowners and 10 were owned by D.R. Horton. As of late February 2025, 7 more homes were sold by D.R. Horton to individual homeowners, 2 homes were in escrow but not yet closed to individual homeowners, and 1 home was under construction.

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2019 Bonds; Proposed 2025A Bonds. The City is authorized to levy special taxes an d incur indebtedness for and on behalf of CFD 2016 -1 to finance the costs of infrastructure associated with the Villages at Fairfield project.

As described above, the City is authorized to levy special taxes upon the land within Improvement Area B and issue bonds in the aggregate principal amount of $25,000,000 secured by the special taxes levied in Improvement Area B.

Pursuant to Resolution No. 2019-179, which was adopted by the council on July 16, and a Fiscal Agent Agreement, dated as of August 1, 2019 (“Master Fiscal Agent Agreement”), by and between the City and the Bank of New York Mellon Trust Company, N.A. (“Fiscal Agent”), the council previously issued on behalf of the CFD $19,865,000 Improvement Area B of the City of Fairfield Community Facilities District No. 2016-1 (Villages at Fairfield) Special Tax Bonds, Series 2019A (the “2019 Bonds”). As a result of the issuance of the 2019 Bonds and the $25,000,000 bonded indebtedness limit for Improvement Area B, the maximum principal amount of the 2025A Bonds is $5,135,000.

The City will use the proceeds of the 2025A Bonds to acquire authorized public improvements from the Master Developer, pursuant to the terms established by an Acquisition Agreement between the City and the Master Developer, as amended (the “Acquisition Agreement”).

Pursuant to the resolution, the maximum principal amount of the 2025A Bonds is $5,000,000 and the true interest cost of the 2025A Bonds cannot exceed 5.5%. Based on current market conditions, the 2025A Bonds are estimated to be issued in the amount of $2,570,000 and carry a true interest cost of approximately 4.97%.

The 2025A Bonds would be secured by and payable from special taxes levied in Improvement Area B on a parity basis with the 2019 Bonds.

Value to Burden Rat io. The City has not commissioned an appraisal of the property in Improvement Area B.

The tax year 2024 -25 assessed values of the taxable property in Improvement Area B total $244,208,027. The resulting value to burden ratio is based on (i) an estimated initial principal amount of the 2025A Bonds ($3,000,000) and (ii) the outstanding principal amount of all other outstanding bonds that are secured by a special tax or special assessment levied on property within Improvement Area B, including the 2019 Bonds ($19,455,000), is 10.9:1.

This value to burden ratio meets the 4:1 requirement in the City’s local goals and policies for community facilities districts.

Financing Schedule. The financing is expected to price and close in April 2025.

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Proposed Resolution and Related Documents. In order to complete the financing, the council is being asked to approve each of the following:

 Resolution. Resolution of the City Council authorizing the issuance of bonds for CFD 2016- 1 with respect to Improvement Area B and approving and authorizing related documents and actions.
 Preliminary Official Statement. The Official Statement is the primary disclosure document for investors in the 2025A Bonds. A Preliminary Official Statement will be c irculated to potential investors prior to the pricing of the 2025A Bonds. After the 2025A Bonds have been priced, a Final Official Statement will be circulated to investors; the Final Official Statement should be identical to the Preliminary Official State ment except for the addition of pricing information (principal amount, interest rates, redemption terms).

The Preliminary Official Statement describes the special taxes to be levied in Improvement Area B and the status for the property within Improvement Area B.

The Preliminary Official Statement is prepared by Jones Hall, serving the City as disclosure counsel for this transaction, with the assistance of the financing team, including City staff; the Master Developer; the City’s municipal advisor; Stifel Nicolaus and Company, Incorporated (“Underwriter”), the underwriter of the 2025A Bonds; and the City’s special tax consultant.

The Preliminary Official Statement has been reviewed and approved for transmittal to the council by the City’s financing team. The distribution of the Preliminary Official Statement by the City is subject to federal securities laws, including the Securities Act of 1933 and the Securities Exchange Act of 1934. These laws require the Preliminary Official Statement to include all f acts that would be material to an investor in the 2025A Bonds.

Material information is information that there is a substantial likelihood would have actual significance in the deliberations of the reasonable investor when deciding whether to buy or sell the bonds. If the council concludes that the Preliminary Official Statement includes all facts that would be material to an investor in the 2025A Bonds, it must adopt a resolution that authorizes staff to execute a certificate to the effect that the Preliminary Official Statement has been “deemed final.”

The Securities and Exchange Commission (the “SEC”), the agency with regulatory authority over the City’s compliance with federal securities laws, has issued guidance as to the duties of the council with respect to its approval of the Preliminary Official Statement. In its “Report of Investigation in the Matter of County of Orange, California as it Relates to the Conduct of the Members of the Board of Supervisors” (Release No. 36761 / January 24, 1996) (the “Release”), the SEC stated that, if a member of the council has knowledge of any facts or circumstances that an investor would want to know about prior to investing in the 2025A Bonds, whether relating to their repayment, tax-exempt status, undisclosed conflicts of interest with interested parties, or otherwise, he or she should endeavor to discover whether such facts are adequately disclosed in the Preliminary

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Official Statement. In the Release, the SEC stated that the steps that a member of the council could take include becoming familiar with the Preliminary Official Statement and questioning staff and consultants about the disclosure of such facts.

The key sections of the Preliminary Official Statement are summarized below:

 “THE 2025A BON DS”: This section summarizes the key terms of the 2025A Bonds, including payment dates and redemption provisions.
 “SECURITY FOR THE 2025A BONDS”: This section summarizes key security terms, including the City’s pledge of special tax revenues, its covenant to levy special taxes according to the Rate and Method of Apportionment of Special Tax for Improvement Area B approved by the council (“RMA”) and its covenant to foreclose on parcels that are delinquent in the payment of special taxes. The 2025A Bonds are a limited obligation of the City, payable only from special taxes levied in Improvement Area B and mon ies in the funds and accounts established under the Fiscal Agent Agreement described below.  “THE DISTRICT AND IMPROVEMENT AREA B”: This section summarizes certain features of Improvement Area B, including the assessed value of taxable property, overlapping taxes, assessments and debt , and anticipated debt service coverage provided by maximum special taxes that may be levied under the RMA. It also includes the status of development and property ownership in Improvement Area B.
 “BOND OWNERS’ RISKS”: This section highlights the primary risks associated with the 2025A Bonds, natural disasters and failure of property owners to pay their special taxes.  “LEGAL MAT TERS – Tax Exemption”: This section describes the tax -exempt nature of interest on the 2025A Bonds.

In addition to the Preliminary Official Statement, the council is being asked to approve the following documents:

 Continuing Disclosure Certificate. Under SEC Rule 15c2 -12, the Underwriter may only purchase the 2025A Bonds if it has determined that the City is obligated to provide continuing disclosure, including annual updates of the financial and operating data included in the Official Statement and notices of certain specified events.  First Supplement to Fiscal Agent Agreement. This document supplements the Fiscal Agent Agreement executed by the City in connection with the issuance of the 2019 Bonds and governs the 2025A Bonds and the use of specia l taxes from Improvement Area B to pay debt service on the 2025A Bonds on a parity basis with the 2019 Bonds. The fiscal agent is The Bank of New York Mellon Trust Company, N.A. The special taxes will be levied on the regular County tax roll and collected by the County from each taxable parcel in Improvement Area B. The County will remit these special taxes to the City. The City will remit them to the fiscal agent as provided for in the Fiscal Agent Agreement. The Fiscal Agent will use the revenues to (1) pay the administrative costs of the CFD and (2) pay the principal and interest on the 2025A Bonds to the bond owners.

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 Bond Purchase Agreement. At the time the 2025A Bonds are sold, the City will enter into a Bond Purchase Agreement with the Underwriter, who will agree to underwrite the 2025A Bonds subject to satisfaction of the conditions described in the Bond Purchase Agreement. The resolution provides the Underwriter’s discount on the purchase of the 2025A Bonds shall not exceed 4% of the par amount of the 2025A Bonds.

FINANCIAL IMPACT
There is no General Fund or fiscal impact to the City. Debt service on the 2025A Bonds is payable only from special taxes levied annually on taxable properties within Improvement Area B in the manner set forth in the RMA. The costs of issuing the 2025A Bonds will be paid from the proceeds of the 2025A Bonds.

PUBLIC CONTACT/ADVISORY BODY RECOMMENDATION
N/A

ALTERNATIVE ACTION
The council may choose not to approve the attached resolution, in which case the 2025A Bonds would not be issued. However, pursuant to the Development Agreement, the City has agreed to cooperate with the Master Developer in forming CFD 2016 -1 to finance public facilities related to Villages at Fairfield.

COORDINATED WITH
City Attorney’s Office

STAFF CONTACT
John Furtado, director of finance
(707) 428-7629
[email protected]

ATTACHMENTS
Attachment 2: Proposed Resolution
Attachment 3: Appendix A
Attachment 4: Appendix E - Preliminary Official Statement, Including Continuing Disclosure Certificate
Attachment 5: Bond Purchase Agreement
Attachment 6: First Supplement to Fiscal Agent Agreement

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Appendix A

Government Code Section 5852.1 Disclosure

The good faith estimates set forth herein are provided with respect to the Bonds in accordance with California Government Code Section 5852.1. Such good faith estimates have been provided to the City by PFM Financial Advisors LLC, the City’s Municipal Advisor, in consultation with the Underwriter.

Principal Amount. The Municipal Advisor has informed the City that, based on the CFD financing plan and current market conditions, its good faith estimate of the aggregate principal amount of the Bonds to be sold is $2,570,000, not including original issue premium (the “Estimated Principal Amount”).

True Interest Cost of the Bonds. The Municipal Advisor has informed the City that, assuming that the Estimated Principal Amount of the Bonds is sold, and based on market interest rates prevailing at the time of preparation of such estimate, its good faith estimate of the true interest cost of the Bonds, which means the rate necessary to discount the amounts pa yable on the respective principal and interest payment dates to the purchase price received for the Bonds, is 4.98%.

Finance Charge of the Bonds . The Municipal Advisor has informed the City that, assuming that the Estimated Principal Amount of the Bonds is sold, and based on market interest rates prevailing at the time of preparation of such estimate, its good faith estimate of the finance charge for the Bonds, which means the sum of all fees and charges paid to third parties (or costs associated with the Bonds), is $494,234. Such fees and charges include fees for bond and disclosure counsel, municipal advisor, appraiser, market absorption consultant, special tax consultant, fiscal agent, city attorney and staff time related to bond issuance, set -aside for Fiscal Year 2025 -26 CFD administrative expenses, printing, premium for municipal bond and reserve fund insurance policies, and underwriting.

Amount of Proceeds to be Received. The Municipal Advisor has informed the City that, assuming that the Estimat ed Principal Amount of the Bonds is sold, and based on market interest rates prevailing at the time of preparation of such estimate, its good faith estimate of the amount of proceeds expected to be received on behalf of the CFD and Improvement Area B for s ale of the Bonds, less the finance charge of the Bonds, as estimated above, and any reserves or capitalized interest paid or funded with proceeds of the Bonds, is $2,910,434.

Total Payment Amount . The Municipal Advisor has informed the City that, assuming that the Estimated Principal Amount of the Bonds is sold, and based on market interest rates prevailing at the time of preparation of such estimate, its good faith estimate of the total payment amount, which means the sum total of all payments that the Im provement Area B property owners will make to pay debt service on the Bonds, plus the finance charge for the Bonds, as described above, not paid with the proceeds of the Bonds (including the Bond proceeds deposited into a debt service reserve fund), calculated to the final maturity of the Bonds, is $5,406,547.

The foregoing estimates constitute good faith estimates only. The actual principal amount of the Bonds issued and sold, the true interest cost thereof, the finance charges thereof, the amount of proceeds received therefrom and total payment amount with respect thereto may differ from such good faith estimates due to (a) the actual date of the sale of the Bonds being different than the date assumed for purposes of such estimates, (b) the actual principal amount of Bonds sold being

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different from the Estimated Principal Amount, (c) the actual amortization of the Bonds being different than the amortization assumed for purposes of such estimates, (d) the actual market interest rates at the time of sale of the Bonds being different than those estimated for purposes of such estimates, (e) other market conditions, or (f) alterations in the CFD financing plan, delays in the financing, or a combination of such factors. The actual date of sale of the Bonds and t he actual principal amount of Bonds sold will be determined by the City based on the timing of the need for proceeds of the Bonds and other factors. The actual interest rates borne by the Bonds will depend on market interest rates at the time of sale there of. The actual amortization of the Bonds will also depend, in part, on market interest rates at the time of sale thereof. Market interest rates are affected by economic and other factors beyond the control of the City.

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CITY OF FAIRFIELD

RESOLUTION NO. 2025-51

RESOLUTION AUTHORIZING THE ISSUANCE AND SALE OF SPECIAL TAX BONDS FOR THE CITY OF FAIRFIELD COMMUNITY FACILITIES DISTRICT NO. 2016-1 (VILLAGES AT FAIRFIELD) WITH

RESPECT TO ITS IMPROVEMENT AREA B, AND APPROVING AND AUTHORIZING RELATED

DOCUMENTS AND ACTIONS

RESOLVED by the City Council (the “City Council”) of the City of Fairfield (the “City”), County of Solano, State of California, that:

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 (“Mello-Roos Act”), to form “City of Fairfield Community Facilities District No. 2 016-1 (Villages at Fairfield)” (“CFD”) and “Improvement Area B of the City of Fairfield Community Facilities District No. 2016-1 (Villages at Fairfield)" (“Improvement Area B”), to authorize the levy of special taxes upon the land within Improvement Area B and issue bonds in the aggregate principal amount of $25,000,000 secured by the special taxes levied in Improvement Area B for financing certain public improvements (“Authorized Facilities”), all as described in those proceedings ; and

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

WHEREAS, pursuant to Resolution No. 2019-179, which was adopted by the City Council on July 16, 2019 (“2019 Resolution of Issuance”) and a Fiscal Agent Agreement, dated as of August 1, 2019 (“Master Fiscal Agent Agreement”), by and between the City and The Bank of New York Mellon Trust Company, N.A. (“Fiscal Agent”), the City Cou ncil previously issued the following special tax bonds on behalf of the CFD with respect to Improvement Area B (“2019 Bonds”):
$19,865,000 Improvement Area B of the City of Fairfield Community Facilities District No. 2016 - 1 (Villages at Fairfield) Special Tax Bonds, Series 2019A; and

WHEREAS, the City Council now wishes to provide for the issuance of one or more additional series of special tax bonds (the “Bonds”) on a parity basis with the 2019 Bonds to finance a portion of the Authorized Facilities and related costs and expenses; and

WHEREAS, there has been submitted to this City Council a form of a First Supplement to Fiscal Agent Agreement between the City and the Fiscal Agent (“First Supplement”; together with the Master Fiscal Agent Agreement, “Fiscal Agent Agreement”), which supplements the Master Fiscal Agent Agreement for the purpose of issuing one or more additional series of special tax bonds,

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and this City Council with the aid of its staff has reviewed the First Supplement and found it to be in proper order; and

WHEREAS, there has also been submitted to this City Council a form of preliminary Official Statement in connection with the marketing of the Bonds and this City Council, with the aid of its staff, has reviewed the preliminary Official S tatement to assure disclosure of all material facts relating to the Bonds, and the City Council wishes to approve the distribution of the preliminary Official Statement; and

WHEREAS, in accordance with Government Code Section 5852.1, the City Council has obtained and wishes to disclose the information set forth in Appendix A hereto; and

WHEREAS, all conditions, things and acts required to exist, to have happened and to have been performed precedent to and in the issuance of the Bonds and the levy of the special taxes as contemplated by this Resolution and the documents referred to herein exist, have happened and have been performed in due time, form and manner as required by the laws of the State of California, including the Mello-Roos Act.

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

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

Section 2. Bonds Authorized. Pursuant to the Mello -Roos Act, this Resolution and the Fiscal Agent Agreement, one or more series of Bonds, in an aggregate principal amount not to exceed $5,000,000, are hereby authorized to be issued.

The Bonds shall be dated, bear interest at the rates, mature on the dates, be issued in the form, be subject to redemption, and otherwise be issued on the terms and conditions, all as set forth in the Fiscal Agent Agreement and in accordance with this Resolution; provided, however, that the interest rate borne by each series of Bonds shall not exceed the maximum rate authorized in this Resolution. The Bonds may be issued as tax -exempt bonds or as taxable bonds. The Fiscal Agent, an Authorized Officer (as defined herein) and other responsible officers of the City are hereby authorized and directed to take such actions as are required to cause the delivery of the Bonds upon receipt of the purchase price thereof.

Section 3. Compliance with the Goals and Policies. The City Council hereby finds that the issuance of the Bonds is in compliance with the Mello -Roos Act and applicable provisions of the City’s Goals and Policies. More specifically, this City Council hereby makes the following determinations:

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RES. NO. 2025-51

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(a) The rate and method of apportionment of special taxes for Improvement Area B is in compliance with the Goals and Policies.

(b) Section 53345.8 of the Mello -Roos Act requires, with certain exceptions, that the value of the real property subject to special taxes levied in Improvement Area B must be at least three times the principal amount of the Bonds and the principal amount of all other bonds that will be outstanding following issuance of the Bonds that are secured by a special tax levied pursuant to the Mello -Roos Act on property within the Improvement Area B or a special assessment levied on property within Improvement Area B, a nd this City Council hereby determines that, based on tax year 2024 -25 assessed values of the taxable property in Improvement Area B, the value of the property within Improvement Area B is at least three times (i) the maximum initial principal amount of th e Bonds authorized by this Resolution and (ii) the outstanding principal amount of all other outstanding bonds that are secured by a special tax or special assessment levied on property within Improvement Area B, including the 2019 Bonds.

(c) To the extent a pplicable, the provision requiring property owners to provide continuing disclosure as long as they own property that is responsible for at least 10% of the special taxes in Improvement Area B is hereby waived so that the threshold can be established for the Bonds at a level acceptable to the Underwriter.

Section 4. Authorities Granted. To the extent permitted by law, the Mayor, the City Manager, the Finance Director or such other official of the City as may be designated by the Mayor, the City Manager o r the Finance Director (each, an “Authorized Officer”) is hereby authorized and directed to execute and deliver the documents approved herein in substantially the form on file with the City Clerk, together with such additions or changes as are approved by such Authorized Officer upon consultation with the City Attorney and the City’s bond counsel, including such additions or changes as are necessary or advisable to permit the timely issuance, sale and delivery of the Bonds. The approval of such additions or changes shall be conclusively evidenced by the execution and delivery by an Authorized Officer of the documents herein specified.

Section 5. First Supplement to Fiscal Agent Agreement. The City Council hereby approves the form of the First Supplement with respect to the Bonds, in substantially the form on file with the City Clerk. The date, manner of payment, interest rate or rates, interest payment dates, denominations, form, registration privileges, manner of execution, place of payment, terms of redemption and other terms of the Bonds shall be as provided in the First Supplement as finally executed and delivered. The terms and provisions of the First Supplement, as executed, are incorporated herein by this reference as if fully set forth herein. An Authorized Officer is hereby authorized and directed to execute the First Supplement on behalf of the City, with such changes, additions or deletions as may be approved by the Authorized Officer, and the City Clerk is hereby

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authorized and directed to at test thereto, subject to such First Supplement complying with the terms set forth in this Resolution.

Section 6. Official Statement. The City Council hereby approves the Official Statement prepared in connection with the Bonds in the form on file with t he City Clerk, together with any changes therein or additions thereto deemed advisable by an Authorized Officer after consultation with the City’s disclosure counsel. The Board hereby approves and authorizes the distribution by the Underwriter of the Bond s (defined below) of the preliminary Official Statement to prospective purchasers of the Bonds, and authorizes and directs an Authorized Officer on behalf of the City to deem the preliminary Official Statement “final” pursuant to Rule 15c2-12 under the Securities Exchange Act of 1934 (“Rule”) prior to its distribution to prospective purchasers of the Bonds.

The execution of the final Official Statement, which shall include then current financial information regarding Improvement Area B and such other chang es and additions thereto deemed advisable by an Authorized Officer and such information permitted to be excluded from the preliminary Official Statement pursuant to the Rule, shall be conclusive evidence of the approval of the Official Statement by the City.

Section 7. Continuing Disclosure. The City Council hereby approves the form of the continuing disclosure certificate (“Continuing Disclosure Certificate”) with respect to the Bonds in the form thereof attached to the Official Statement on file with the City Clerk. An Authorized Officer is hereby authorized and directed to complete and execute the Continuing Disclosure Certificate on behalf of the City with such changes, additions or deletions as may be approved by the Authorized Officer in consultation with the City’s disclosure counsel.

Section 8. Bond Purchase Agreement. That the form of the Bond Purchase Agreement ("Purchase Contract") providing for the sale of the Bonds by the City to Stifel, Nicolaus & Company, Incorporated, as underwriter ("Underwriter"), on file with the City Clerk is hereby approved and each of the Authorized Officers is hereby authorized to execute the Purchase Contract in the form so approved, with such additions thereto and change s therein as are necessary to conform the Purchase Contract to the dates, amounts and interest rates applicable to the Bonds as of the sale date or as are approved by an Authorized Officer upon consultation with the City Attorney and the City’s bond counse l; provided that the maximum amount of Underwriter’s discount on the sale of each series of Bonds may not exceed 4.0% of the par amount of such series of Bonds and the true interest cost of the Bonds may not exceed 5.50%.

Approval of such additions and cha nges shall be conclusively evidenced by the execution and delivery of the Purchase Contract by an Authorized Officer. This City Council hereby finds that the sale of the Bonds to the Underwriter at a negotiated sale pursuant to the Purchase Contract will result in a lower overall cost than would be achieved by selling the Bonds utilizing competitive bidding.

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RES. NO. 2025-51

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Section 9. Bond Delivery. That the Bonds shall be prepared, executed and delivered to the Fiscal Agent for authentication, all in accordance with the terms of the Fiscal Agent Agreement and the Purchase Contract.

Section 10. Actions Authorized. That all actions heretofore taken by the officers and agents of the City (including, but not limited to, the Authorized Officers) with respect to the establishment of the CFD and Improvement Area B, the annexation of properties to Improvement Area B, the levy of the special tax and the issuance of the Bonds are hereby approved, confirmed and ratified, and the appropriate officers of the City are hereby autho rized and directed to do any and all things and take any and all actions (including determining to purchase municipal bond and reserve fund insurance policies and to pay the premiums with proceeds of the Bonds) and execute any and all certificates, agreeme nts and other documents, which they, or any of them, may deem necessary or advisable in order to accomplish the purposes of this Resolution and consummate the lawful issuance and delivery of the Bonds in accordance with this Resolution, any determination a uthorized by this Resolution, and any certificate, agreement, and other document described in the documents herein approved. All actions to be taken by an Authorized Officer, as defined herein, may be taken by such Authorized Officer or any designee, with the same force and effect as if taken by the Authorized Officer.

Section 11. Effectiveness. That this Resolution shall take effect upon its adoption.

PASSED AND ADOPTED this 1st day of April 2025, by the following vote:

_________________________________________________
MAYOR
ATTEST:
___________________________

CITY CLERK

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PRELIMINARY OFFICIAL STATEMENT DATED ___________, 2025

This Preliminary Official Statement and the information contained herein are subject to completion or amendment. These securities may not be sold nor may offers to buy be accepted prior to the time the Official Statement is delivered in final form. Under no circumstances will this Preliminary Official Statement constitute an offer to sell or a solicitation of an offer to buy nor will there be any sale of these securities in any jurisdiction in which such offer solicitation or sale would be unlawful.

NEW ISSUE – BOOK-ENTRY ONLY [INSURED RATING: S&P: “__”
UNDERLYING RATING: S&P: “__”
See “RATINGS.”]
In the opinion of Jones Hall, A Professional Law Corporation, San Francisco, California, Bond Counsel, subject, however to certain qualifications described herein, under existing law, the interest on the 2025A Bonds is excluded from gross income for federal income tax purposes, and is not an item of tax preference for purposes of the federal alternative minimum tax imposed on individuals; however, such interest on the 202 5A Bonds may be taken into account for the purpose of computing the alternative minimum tax imposed on certain corporations. In the further opinion of Bond Counsel, such interest is exempt from California personal in come taxes. See “LEGAL MATTERS – Tax Exemption.”

$3,000,000*

IMPROVEMENT AREA B OF THE

CITY OF FAIRFIELD
COMMUNITY FACILITIES DISTRICT NO. 2016-1
(VILLAGES AT FAIRFIELD)
SPECIAL TAX BONDS, SERIES 2025A
Dated: Date of Delivery Due: September 1, as shown on inside cover Authority for Issuance. The bonds captioned above (the “2025A Bonds”) are being issued by the City of Fairfield (the “City”) for and on behalf of the “City of Fairfield Community Facilities District No. 2016 -1 (Villages at Fairfield)” (the “District”) with respect to its “Improvement Area B of the City of Fairfield Community Facilities District No. 2016-1 (Villages at Fairfield)” (“Improvement Area B”). The 2025A Bonds are being issued pursuant to the Mello-Roos Community Facilities Act of 1982 , as amended (the “Act”), the Resolution of Issuance (as defined herein), and a Fiscal Agent Agreement dated as of August 1, 2019, (the “Master Fiscal Agent Agreement”), by and between the City, for and on behalf of the District, and The Bank of New York Mellon Trust Company, N.A., as fiscal agent (the “Fiscal Agent”) , as supplemented by a First Supplement to Fiscal Agent Agreement, dated as of April 1, 2025 (as supplemented, the “Fiscal Agent Agreement”). The City Council of the City, acting as legislative body of the District, has authorized the issuance of the 2025A Bonds in an aggregate principal amount not to exceed $5,000,000. See “THE 2025A BONDS – Authority for Issuance.”
Security and Sources of Payment. The 2025A Bonds are payable from proceeds of Special Tax Revenues (as defined herein) levied on property within Improvement Area B according to the rate and method of apportionment of special tax approved by the City Council and the eligible landowner voters in Improvement Area B of the District. The 2025A Bonds are secured by a first pledge of all of the Special Tax Revenues and the moneys on deposit in certain funds held by the Fiscal Agent under the Fiscal Agent Agreement, on a parity with bonds that may be issued in the future, subject to the conditions set forth in the Fiscal Agent Agreement.

See “SECURITY FOR THE 2025A BONDS.”
Outstanding Parity Bonds. The 2025A Bonds represent the second series of special tax bonds issued with respect to Improvement Area B. In August 2019, the City issued the first series of special tax bonds captioned “$19,865,000 Improvement Area B of the City of Fairfield Community Facilities District No. 2016-1 (Villages at Fairfield) Special Tax Bonds, Series 2019A” (the “2019A Bonds”). The 2019A Bonds, the 2025A Bonds and any future Parity Bonds (as defined herein) are referred to herein as the “Bonds.” Use of Proceeds. The 2025A Bonds are being issued to (i) finance the acquisition and construction of certain facilities and improvements to be owned and operated by the City, (ii) fund capitalized interest on the 2025A Bonds through _______, (iii) satisfy the 2019 Reserve Requirement (as defined herein) from the proceeds of the 2025A Bonds and/or a through the purchase a debt service reserve policy, (iv) if elected by the District, pay the premium for a municipal bond insurance policy, and (v) pay the costs of issuing the 2025A Bonds. See “FINANCING PLAN.”
Bond Terms. Interest on the 2025A Bonds is payable on September 1, 2025, and semiannually thereafter on each March 1 and September 1. The 2025A Bonds will be issued in integral multiples of $5,000. The 2025A Bonds, when delivered, will be initially registered in the name of Cede & Co., as nominee of The Depository Trust Com pany (“DTC”), New York, New York. DTC will act as securities depository for the 2025A Bonds. See “THE 2025A BONDS – General Bond Terms” and “APPENDIX D – DTC and the Book-Entry Only System.”
Redemption. The 2025A Bonds are subject to optional redemption, mandatory sinking fund redemption and special redemption from prepaid Special Taxes. See “THE 2025A BONDS – Redemption.” The 2025A Bonds, the interest thereon, and any premiums payable on the redemption of any of the 2025A Bonds, are not an indebtedness of the City (except to the limited extent described in this Official Statement) , the State of California (the “State”) or any of its political subdivisions, and neither the City (except to the limited extent described in this Official Statement), the State nor any of its political subdivisions is liable on the 2025A Bonds. Neither the faith and credit nor the taxing power of the City (except to the limited extent described in th is Official Statement) or the State or any political subdivision thereof is pledged to the payment of the 2025A Bonds or interest thereon. Other than the Special Tax Revenues, no taxes are pledged to the payment of the 2025A Bonds. The 2025A Bonds are not a general obligation of the City, but are limited obligations of the City payable solely from the Special Tax Revenues as more fully described in this Official Statement.

MATURITY SCHEDULE
(see inside cover)
This cover page contains certain information f or quick reference only. It is not a summary of the issue. Potential investors must read the entire Official Statement to obtain information essential to the making of an informed investment decision. Investment in the 2025A Bonds involves risks which m ay not be appropriate for some investors. See “BOND

* Preliminary; subject to change.

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OWNERS' RISKS” for a discussion of special risk factors that should be considered in evaluating the investment quality of the 2025A Bonds.

The 2025A Bonds are offered when, as and if issued and accepted by the Underwriter, subject to approval as to their legality by Jones Hall, A Professional Law Corporation, San Francisco, California, Bond Counsel, and subject to certain other conditions. Jones Hall, A Professional Law Corporation, is also serving as disclosure counsel to the City. Certain matters will be passed upon for the City by Richards, Watson and Gershon, San Francisco, California , acting as the City Attorney . Stradling Yocca Carlson & Rauth, LLP, Newport Beach, California, is serving as counsel to the Underwriter. It is anticipated that the 2025A Bonds, in book-entry form, will be available for delivery through the facilities of DTC on or about April __, 2025. [Stifel Logo]
The date of this Official Statement is: __________, 2025.

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MATURITY SCHEDULE

$_____________*

IMPROVEMENT AREA B OF THE

CITY OF FAIRFIELD
COMMUNITY FACILITIES DISTRICT NO. 2016-1
(VILLAGES AT FAIRFIELD)
SPECIAL TAX BONDS, SERIES 2025A

Maturity Date
(September 1)
Principal
Amount Interest Rate Yield Price
CUSIP†
(Base ______)

$______ ___% Term 2025A Bond due September 1, 20__, Yield: ____%, Price: ____ CUSIP† No. _____

† CUSIP Global Services (CGS) is managed on behalf of American Bankers Association by FactSet Research Systems Inc.

Copyright 2025 CUSIP Global Services. This data is not intended to create a database and does not serve in any way as a substitute for the CGS database. CUSIP numbers are provided for convenience of reference only. Neither the City nor the Underwriter or their agents or counsel assume responsibility for the accuracy of such numbers. * Preliminary; subject to change.

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CITY OF FAIRFIELD

CITY COUNCIL
Catherine Moy, Mayor
Pam Bertani, Vice Mayor Councilmember
K. Patrice Williams, Councilmember
Manveer Sandhu, Councilmember
Doug Carr, Councilmember
Doriss Panduro, Councilmember
Scott Tonnesen, Councilmember

CITY EXECUTIVE STAFF
David Gassaway, City Manager
Savita Chaudhary, Assistant City Manager
John Furtado, Director of Finance
Sanjay Mishra, Director of Public Works
David Zellers, Director of Community and Economic Development

CITY TREASURER
Arvinda Krishnan

CITY CLERK
Karen L. Rees

CITY ATTORNEY
Richards, Watson & Gershon
San Francisco, California

___________________________________

PROFESSIONAL SERVICES

BOND AND DISCLOSURE COUNSEL
Jones Hall, A Professional Law Corporation
San Francisco, California

MUNICIPAL ADVISOR
PFM Financial Advisors LLC
San Francisco, California

SPECIAL TAX CONSULTANT
Goodwin Consulting Group, Inc.

Sacramento, California

FISCAL AGENT
The Bank of New York Mellon Trust Company, N.A.

San Francisco, California

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[REGIONAL LOCATION MAP]

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AERIAL PHOTOS

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GENERAL INFORMATION ABOUT THIS OFFICIAL STATEMENT

No Offering May Be Made Except by this Official Statement. No dealer, broker, salesperson or other person has been authorized to give any information or to make any representations with respect to the 2025A Bonds other than as contained in this Official Statement, and if given or made, such other information or representation must not be relied upon as having been authorized.

No Unlawful Offers or Solicitations. This Official Statement does not constitute an offer to sell or the solicitation of an offer to buy in any state in which such offer or solicitation is not authorized or in which the person making such offer or solicitation is not qualified to do so or t o any person to whom it is unlawful to make such offer or solicitation.

Effective Date. This Official Statement speaks only as of its date, and the information and expressions of opinion contained in this Official Statement are subject to change without notice. Neither the delivery of this Official Statement nor any sale of the 2025A Bonds will, under any circumstances, create any implication that there has been no change in the affairs of the City, the District, any other parties described in this Official Statement, or in the condition of property within Improvement Area B of the District since the date of this Official Statement.

Use of this Official Statement. This Official Statement is submitted in connection with the sale of the 2025A Bonds referred to herein and may not be reproduced or used, in whole or in part, for any other purpose. This Official Statement is not a contract with the purchasers of the 2025A Bonds.

Preparation of this Official Stat ement. The information contained in this Official Statement has been obtained from sources that are believed to be reliable, but this information is not guaranteed as to accuracy or completeness.

The Underwriter has provided the following sentence for inclusion in this Official Statement: The Underwriter has reviewed the information in this Official Statement in accordance with, and as part of, its responsibilities to investors under the federal securities laws as applied to the facts and circumstances of this transaction, but the Underwriter does not guarantee the accuracy or completeness of such information.

Document References and Summaries. All references to and summaries of the Fiscal Agent Agreement or other documents contained in this Official Statement are subject to the provisions of those documents and do not purport to be complete statements of those documents.

Stabilization of and Changes to Offering Prices. The Underwriter may overallot or take other steps that stabilize or maintain the market prices of the 2025A Bonds at levels above those that might otherwise prevail in the open market. If commenced, the Underwriter may discontinue such market stabilization at any time. The Underwriter may offer and sell the 2025A Bonds to certain securities dealers, dealer banks and banks acting as agent at prices lower than the public offering prices stated on the inside cover page of this Official Statement, and those public offering prices may be changed from time to time by the Underwriter.

Bonds are Exempt from Securities Laws Registration. The issuance and sale of the 2025A Bonds have not been registered under the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended, in reliance upon exemptions for the issuance and sale of municipal securities provided under Section 3(a)(2) of the Securities Act of 1933 and Section 3(a)(12) of the Securities Exchange Act of 1934.

Estimates and Projections. Certain statements included or incorporated by reference in this Offic ial Statement constitute “forward-looking statements” within the meaning of the United States Private Securities Litigation Reform Act of 1995, Section 21E of the United States Securities Exchange Act of 1934, as amended, and Section 27A of the United States Securities Act of 1933, as amended. Such statements are generally identifiable by the terminology used such as “plan,” “expect,” “estimate,” “budget” or other similar words.

The achievement of certain results or other expectations contained in such f orward-looking statements involve known and unknown risks, uncertainties and other factors which may cause actual results, performance or achievements described to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. The City does not plan to issue any updates or revisions to those forward-looking statements if or when its expectations, or events, conditions or circumstances on which such statements are based occur.

The City maintains an Internet website, but the information on the website is not incorporated in this Official Statement.

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TABLE OF CONTENTS

Page Page
INTRODUCTION ............................................... 1 FINANCING PLAN ............................................. 5 Facilities Financing Plan ................................ 5 Development Agreement ............................... 5 Estimated Sources and Uses of Funds ......... 6
THE 2025A BONDS .......................................... 7 Authority for Issuance .................................... 7 General Bond Terms ..................................... 7 Redemption.................................................... 8 Issuance of Future Parity Bonds ................. 10
Registration, Transfer and Exchange .......... 12

DEBT SERVICE SCHEDULE AND
PROJECTED COVERAGE .......................... 14
SECURITY FOR THE 2025A BONDS ............ 15
General ........................................................ 15 Limited Obligation ........................................ 15 Special Taxes .............................................. 16 Rate and Method ......................................... 17 Covenant to Foreclose ................................. 21 Special Tax Fund ......................................... 23 Bond Fund ................................................... 25 2019 Reserve Fund ..................................... 26 Investment of Moneys in Funds ................... 28

THE DISTRICT AND IMPROVEMENT AREA
B ................................................................... 28 Formation and Background ......................... 28
Description and Location ............................. 28 Development of Property Within
Improvement Area B ................................ 29
Status of Bond Financed Public
Infrastructure............................................ 31 Entitlements ................................................. 31 Environmental Matters ................................. 31 Special Tax Revenues and Projected Debt
Service Coverage .................................... 32 Assessed Values ......................................... 32 Value-to-Debt Ratios ................................... 33 Direct and Overlapping Governmental
Obligations ............................................... 35 Illustrative Tax Bill ........................................ 37 Special Tax Collection and Delinquencies
Rates ....................................................... 38 Potential Consequences of Special Tax
Delinquencies .......................................... 39 BOND OWNERS' RISKS ................................. 40 Risks of Real Estate Secured Investments
Generally.................................................. 40 Limited Obligation of the City to Pay Debt
Service ..................................................... 40 Levy and Collection of the Special Tax ........ 40
Property Tax Delinquencies ......................... 42 Risks Related to Homeowners with High
Loan to Value Ratios ............................... 42 Payment of Special Tax is not a Personal
Obligation of the Property Owners .......... 43
Assessed Values ......................................... 43 Property Values ........................................... 43 Value to Lien Ratios ..................................... 45 Other Possible Claims Upon the Value of
Taxable Property ..................................... 46 Exempt Properties ....................................... 46 FDIC/Federal Government Interests in
Properties................................................. 47 Depletion of 2019 Reserve Fund ................. 48
[Risks Associated with the Reserve Policy
Provider .................................................... 49 [Risks Associated with Bond Insurance ....... 49
Bankruptcy Delays ....................................... 49 Cyber Security ............................................. 50 Disclosure to Future Purchasers ................. 50
Public Health Emergencies .......................... 50 No Acceleration Provisions .......................... 50 Loss of Tax Exemption ................................ 51 IRS Audit of Tax-Exempt Bond Issues ........ 51
Impact of Legislative Proposals,
Clarifications of the Code and Court
Decisions on Tax Exemption ................... 51
Voter Initiatives ............................................ 51 Secondary Market for Bonds ....................... 52
LEGAL MATTERS ........................................... 53 Legal Opinions ............................................. 53 Tax Exemption ............................................. 53 No Litigation ................................................. 55 CONTINUING DISCLOSURE .......................... 55
[RATINGS] ....................................................... 56 UNDERWRITING ............................................. 56 PROFESSIONAL FEES .................................. 56

APPENDIX A – General Information About the City of Fairfield and Solano County APPENDIX B – Rate and Method of Apportionment for Improvement Area B of the City of Fairfield Community Facilities District No. 2016-1 (Villages at Fairfield) APPENDIX C – Summary of Certain Provisions of the Fiscal Agent Agreement APPENDIX D – DTC and the Book-Entry Only System
APPENDIX E – Form of Continuing Disclosure Certificate APPENDIX F – Form of Opinion of Bond Counsel
APPENDIX G – Community Facilities District Boundary Map

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__________________________________

OFFICIAL STATEMENT
__________________________________

$_____________*

IMPROVEMENT AREA B OF THE

CITY OF FAIRFIELD
COMMUNITY FACILITIES DISTRICT NO. 2016-1
(VILLAGES AT FAIRFIELD)
SPECIAL TAX BONDS, SERIES 2025A

INTRODUCTION

This introduction is not a summary of this Official Statement. It is only a brief description of and guide to, and is qualified by, more complete and detailed information contained in the entire Official Statement, including the cover page, the inside cover and attached appendices, and the documents summarized or described in this Official Statement. A full review should be made of the entire Official Statement. The offering of the 2025A Bonds to potential investors is made only by means of the entire Official Statement.

Capitalized terms used but not defined in this Official Statement have the definitions given in the Fiscal Agent Agreement (as defined below).

This Official Statement, including the cover page, inside cover and attached appendices, is provided to furnish information regarding the bonds captioned above (the “ 2025A Bonds”) to be issued by the City of Fairfield (the “City”) for and on behalf of the “City of Fairfield Community Facilities District No. 2016-1 (Villages at Fairfield)” (the “District”) with respect to its “Improvement Area B of the City of Fairfield Community Facilities District No. 2016 -1 (Villages at Fairfield)” (“Improvement Area B”).

The City. The City, which comprises approximately 37 square miles, is located in the County of Solano (the “County”) approximately 44 miles northeast of San Francisco and 42 miles west of Sacramento. For economic and demographic information regarding the City and County, see “APPENDIX A – GENERAL INFORMATION ABOUT THE CITY OF FAIRFIE LD AND SOLANO COUNTY.”

The District. The District and Improvement Area B were formed and established by the City Council of the City (the “City Council”), as legislative body of the District, under the Mello- Roos Community Facilities Act of 1982, as amended (the “Act”), pursuant to a resolution adopted by the City Council following a public hearing, and a landowner election at which the qualified electors of Improvement Area B authorized the City to incur bonded indebtedness for the District with respect to Improvement Area B, and approved the levy of special taxes.

The District is located on approximately 367 acres in the northeastern area of the City, to the south of Cement Hill and the Putah South Canal, north of Air Base Parkway, east of the Clay Bank Road, and west of the Gold Ridge residential development.

* Preliminary; subject to change.

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The property within the District is part of a larger development project that overlaps the District known as the “Villages at Fairfield” (the “Villages at Fairfield”). The Villages at Fairfield contains approximately 431 gross acres, divided into five separate developments (Villages I, II, III, IV and Laurel Creek Plaza commercial center), and is currently approved and planned for 1,830 residential units and 22.2 acres of commercial, retail an d mixed uses. Rancho Tolenas Corporation, a California Corporation (t he “Master Developer ”), has acted as the master developer for the Villages at Fairfield and has sold and intends to sell remaining portions of the Villages at Fairfield to merchant build ers. The 105 single-family homes in Improvement Area A, corresponding to Village IV, were sold over a two-year period with final completion in June 2019. ___ of the planned 374 single-family homes in Improvement Area C, corresponding to Village II, have been conveyed to individual homeowners as of ___, 2025. Development of Improvement Area D, corresponding to Village III, has not yet commenced, although the Master Developer anticipates receiving entitlements and environmental approvals over approximately the next two years., See “THE DISTRICT AND IMPROVEMENT AREA B – Formation and Background” and “FINANCING PLAN – Development Agreement.”

The District was originally formed to include four improvement areas:

 Improvement Area A of the City of Fairfield Com munity Facilities District No. 2016 -1 (Villages at Fairfield) (“ Improvement Area A ”). The 105 single -family homes in Improvement Area A, corresponding to Village IV, were sold over a two-year period with final completion in June 2019.

 Improvement Area B, as further described herein.

 Improvement Area C of the City of Fairfield Community Facilities District No. 2016 -1 (Villages at Fairfield) (“Improvement Area C”). Of the planned 374 single-family homes in Improvement Area C, corresponding to Village II , __ completed homes had been conveyed to individual homeowners as of ____, 2025.

 Improvement Area D of the City of Fairfield Community Facilities District No. 2016 -1 (Villages at Fairfield)” (“Improvement Area D”). Development of Improvement Area D, corresponding to Village III, has not yet commenced, although the Master Developer anticipates receiving entitlements and environmental approvals over approximately the next two years.

The 2025A Bonds are secured only by the Special Taxes levied within Improvement Area B. No other special taxes of the District, including special taxes levied in Improvement Area A, Improvement Area C and Improvement Area D, will be available to pay debt service on the 2025A Bonds.

See “THE DISTRICT AND IMPROVEMENT AREA B – Formation and Background”

Improvement Area B. Improvement Area B , corresponding to Village I, encompasses approximately 91.5 acres and is located approximately 3 miles east of Interstate 80, at the southeast quadrant of Manuel Campos Parkway and Clay Bank Road, within the City.

The land within Improvement Area B has been developed by the following four builders, each of which acquired their property from the Master Developer (collectively, the “ Merchant Builders”):

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 Villages at Fairfield, LLC, a California limited liability company, doing business as “Discovery Builders” (“ Discovery Homes ”), which has developed its property in Improvement Area B as a development known as “Avery at The Villages” (“Unit 1”);

 D.R. Horton BAY, Inc., a Delaware corporation (referred to in this Official Statement as “D.R. Horton ”), which has developed its property in Improvement Area B as a development known as “Iris at The Villages” (“Unit 2”);

 Richmond American Homes of Maryland, Inc., a Maryland corporation (“ Richmond American”), which has developed its property in Improvement Area B as a development known as “Larkspur at The Villages” (“Unit 3”); and

 TRI Pointe Homes Holdings, Inc., a Delaware corporation (“ TRI Pointe”), which has developed its property in Improvement Area B as a development known as “Lantana at The Villages” (“Unit 4”).

As of January 22 , 2025 , of the 432 single family detached homes planned within Improvement Area B, 422 were owned by individual homeowners and 10 were owned by D.R.

Horton. As of February 28, 2025, D.R. Horton had conveyed seven further homes to individual homeowners, two homes were in escrow but not yet closed to individual homeowners, and one home was under construction.

See “THE DISTRICT AND IMPROVEMENT AREA B – Development of Property Within Improvement Area B.”

Authority for Issuance of the 2025A Bonds. The 2025A Bonds are issued under the Act, a resolution adopted by the City Council of the City on March 18, 2025 (the “ Resolution of Issuance”), and a Fiscal Agent Agreement, dated as of August 1, 2019, (the “ Master Fiscal Agent Agreement”), by and between the City and The Bank of New York Mellon Trust Company, N.A., as fiscal agent (the “Fiscal Agent”), as supplemented by a First Supplement to Fiscal Agent Agreement, dated as of April 1, 2025 (as supplemented, the “ Fiscal Agent Agreement”). See “THE 2025A BONDS – Authority for Issuance.”

Bond Authorization; Parity Bonds. The City Council, as legislative body of the District, and the qualified landowner electors within Improvement Area B , authorized the issuance of bonds for Improvement Area B in an aggregate principal amount not to exceed $25,000,000. The 2025A Bonds represent the second series of special tax bonds issued under this authorization.

In Augus t 2019 the City issued the first series of special tax bonds under this authorization captioned “$19,865,000 Improvement Area B of the City of Fairfield Community Facilities District No. 2016-1 (Villages at Fairfield) Special Tax Bonds, Series 2019A” (the “2019A Bonds”), which are currently outstanding in the principal amount of $19,455,000. The 2025A Bonds are payable on a parity with the 2019A Bonds and any future parity bonds (“Parity Bonds”) issued under the Fiscal Agent Agreement. See “SECURITY FOR THE BONDS – Issuance of Future Parity Bonds.” As a result of the issuance of the 2019A Bonds and the 2025A Bonds, the remaining unissued amount of authorized bonded indebtedness of Improvement Area B is $2,135,000*.

Purpose of the 2025A Bonds. Proceeds of the 2025A Bonds will be used primarily to finance the acquisition and construction of certain facilities to be owned and operated by the City.

Proceeds of the 2025A Bonds will also be used to (i) fund capitalized interest on the 2025A Bonds through __________, (ii) to satisfy the 2019 Reserve Requirement (as defined herein)

* Preliminary; subject to change.

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through a deposit into the 2019 Reserve Fund established and held by the Fiscal Agent under the Fiscal Agent Agreement (the “ 2019 Reserve Fund ”) from the proceeds of the 2025A Bonds and/or through the purchase a debt service reserve insurance policy, (iii) if elected by the District, pay the premium for a municipal bond insurance policy, and (iv) pay the costs of issuing the 2025A Bonds. See “FINANCING PLAN.”

Redemption of 2025A Bonds before Maturity. The 2025A Bonds are subject to optional redemption, mandatory sinking fund redemption and special redemption from prepaid Special Taxes. See “THE 2025A BONDS – Redemption.”

Security and Sources of Payment for the 2025A Bonds. The City Council annually levies special taxes on the property in Improvement Area B of the District (the “Special Taxes”) in accordance with the Rate and Method of Apportionment Improvement Area B of City of Fairfield Community Facilities District No. 2016 -1 (Villages at Fairfield ), County of Solano, State of California (the “ Rate and Method ”) and under the Act, the Ordinance and the Fiscal Agent Agreement. Pursuant to the Fiscal Agent Agreement, t he 2025A Bonds are secured by and payable from a first pledge of all of net proceeds of the Special Taxes (as more particularly defined in the Fiscal Agent Agreement, the “Special Tax Revenues”), on a parity with the 2019A Bonds and any bonds that may be issued in the future, subject to the conditions set forth in the Fiscal Agent Agreement. The 2025A Bonds will be additionally secured by certain funds and accounts established and held under the Fiscal Agent Agreement. See “SECURITY FO R THE 2025A BONDS.”

Debt Service Reserve Fund. In order to further secure the payment of principal of and interest on the 2025A Bonds (and the 2019A Bonds and any other series of Related Parity Bonds, i.e., Parity Bonds, the principal of and interest on which is payable from amounts in the 2019 Reserve Fund), certain proceeds of the 2025A Bonds will be deposited into the 2019 Reserve Fund in an amount equal to the portion of the 2019 Reserve Requirement (as defined herein) related to the 2025A Bonds so that the amount on deposit therein equals the 2019 Reserve Requirement. See “ FINANCING PLAN – Estimated Sources and Uses of Funds ” and “SECURITY FOR THE 2025A BONDS – 2019 Reserve Fund.”

Covenant to Foreclose. The District has covenanted in the Fiscal Agent Agreement to cause foreclosure proceedings to be commenced and prosecuted against certain parcels with delinquent installments of the Special Taxes. For a more detailed description of the foreclosure covenant see “SECURITY FOR THE 2025A BONDS – Covenant to Foreclose.”

Assessed Valuation. The Fiscal Year 2024 -25 assessed valuation of the taxable property within Improvement Area B established by the County Assessor is $244,208,027 , reflecting ownership and deve lopment status as of the January 1, 2024 lien date. See “THE DISTRICT AND IMPROVEMENT AREA B – Assessed Values.”

No Appraisal. The City has not commissioned an appraisal of the property in Improvement Area B. Accordingly, all property value information for the Taxable Property contained in this Official Statement is based on the Fiscal Year 2024 -25 assessed values established by the County Assessor.

Risk Factors Associated with Purchasing the 2025A Bonds. Investment in the 2025A Bonds involves risks that may not be appropriate for some investors. See “BOND OWNERS' RISKS” for a discussion of certain risk factors which should be considered, in addition to the other matters set forth in this Official Statement, in considering the invest ment quality of the 2025A Bonds.

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FINANCING PLAN

Facilities Financing Plan

General. Under the Resolution of Formation adopted by the City Council on December 6, 2016, the District (and each improvement area therein) is authorized to finance the costs of the following facilities (collectively, the “Facilities”):

roadway, bridge, sewer, water, reclaimed water, dry utilities, storm drain, street and parkway landscaping, curb and gutter, medians, median landscaping, traffic signals, entry signage, parks, trails, police facilities, fire facilities and community center, appurtenances and appurtenant work and development impact fees with respect to Improvement Area D that are used by the City to construct infrastructure.

The City currently intends to use the net proceeds of the 2025A Bonds to reimburse the Master Developer for a portion of the cost of constructing certain of the Facilities pursuant to an Acquisition Agreement, dated as of December 6, 2016 (as amended from time to time, the “Acquisition Agreement”), between the City and the Master Developer. Pursuant to the Acquisition Agreement, the City may use proceeds of bonds and special taxes to pay the purchase price for the Facilities constructed by the Master Developer.

Status of Constructi on of Facilities . For the current status of the construction of Facilities in Improvement Area B to be financed with the net proceeds of the 2025A Bonds, see “THE DISTRICT AND IMPROVEMENT AREA B – Status of Bond Financed Public Infrastructure.”

Development Agreement

This section contains only a brief summary of the Development Agreement (defined below). Potential purchasers of the 2025A Bond s are encouraged to review the entire Development Agreement, which is available from the City.

The property within the District is subject to development pursuant to a Second Amended and Restated Development Agreement, dated as of December 17, 2015 ( as amended, the “Development Agreement”), by and among the Master Developer, Fairfield Holding Company, LLC, a Delaware limited liability company, NCCM Holding Company, LLC, a Delaware limited liability company, Laurel Creek Holding Company, LLC, a Delaware limited liability company, Upper Martin Investment Company, LLC, a Delaware limited liability company, Laur el Creek Plaza, LLC, a California limited liability company, and the City.

Under the Development Agreement, the Master Developer agree d to provide certain public benefits in consideration for receiving assurances that the City would grant permits and approvals required for the development of land within and in the vicinity of the District in accordance with the City’s General Plan over the project’s est imated 1 5-year development horizon. The Development Agreement currently expires on January 4, 2031. The Development Agreement includes a number of conditions to be satisfied by the Master Developer and, while failure to satisfy the conditions could result in termination of the Development Agreement , no conditions remain that affect building permits or certificates of occupancy for Improvement Area B.

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Estimated Sources and Uses of Funds

The estimated proceeds from the sale of the 2025A Bonds will be deposited into the following funds established under the Fiscal Agent Agreement:

SOURCES Amount
Principal Amount of 2025A Bonds $
Plus/Less: [Net] Original Issue [Discount]/[Premium]
Less: Underwriter’s Discount
Total Sources $

USES
Deposit into 2025 Improvement Account of Improvement Fund (1) $ Deposit into 2019 Reserve Fund (2)
Deposit into 2025 Costs of Issuance Fund (3)
Total Uses $

(1) See “– Facilities Financing Plan” above for a description of the Facilities that the City currently intends to finance with the proceeds of the 2025A Bonds.
(2) Equal to the portion of the 2019 Reserve Requirement that relates to the 2025A Bonds as of the Closing Date. (3) Includes, among other things, the fees and expenses of Bond Counsel and Disclosure Counsel, printing the Preliminary and final Official Statements, the Fisc al Agent, the Municipal Advisor, [the rating agency] , the Special Tax Consultant, [and premiums for any municipal bond insurance policy and debt service reserve surety, if obtained].

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THE 2025A BONDS

This section generally describes the terms of the 2025A Bonds contained in the Fiscal Agent Agreement, which is summarized in more detail in APPENDIX C. Capitalized terms used but not defined in this section are defined in APPENDIX C.

Authority for Issuance

The 2025A Bonds are issued under the Act, the Resolution of Issuance and the Fiscal Agent Agreement . Under the Resolution of Issuance, the 2025A Bonds may be issued in a maximum principal amount of $5,000,000.

General Bond Terms

Dated Date, Maturity and Authorized Denominations. The 2025A Bonds will be dated their date of delivery (the “Dated Date”), which is the Closing Date, and will mature in the amounts and on the dates set forth on the inside cover page of this Official Statement. The 2025A Bonds will be issued in fully registered form in integral multiples of $5,000.

Calculation of Interest. Interest will be calculated on the basis of a 360 -day year composed of twelve 30-day months. The 2025A Bonds will bear interest at the annual rates set forth on the inside cover page of this Official Statement, payable semiannually on each March 1 and September 1, commencing September 1, 2025 (each, an “Interest Payment Date”).

Each 2025A Bond will bear interest from the Interest Payment Date n ext preceding its date of authentication unless

(i) it is authenticated on an Interest Payment Date, in which event it will bear interest from such date of authentication, or

(ii) it is authenticated prior to an Interest Payment Date and after the close of business on the Record Date (as defined below) preceding such Interest Payment Date, in which event it will bear interest from such Interest Payment Date, or

(iii) it is authenticated prior to the Record Date preceding the first Interest Payment Date, in which event it will bear interest from the Dated Date;

provided, however, that if at the time of authentication of a 2025A Bond, interest is in default thereon, such 2025A Bond will bear interest from the Interest Payment Date to which interest has previously been paid or made available for payment thereon.

“Record Date” means the 15th day of the calendar month next preceding the applicable Interest Payment Date, whether or not such day is a Business Day.

DTC and Book-Entry Only System. DTC will act as securities depository for the 2025A Bonds. The 2025A Bonds will be issued as fully -registered securities registered initially in the name of Cede & Co. (DTC’s partnership nominee). See APPENDIX D – “DTC AND THE BOOK- ENTRY ONLY SYSTEM.”

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Payments of Interest and Principal. For so long as DTC is used as depository for the 2025A Bonds, principal of, premium, if any, and interest payments on the 2025A Bonds will be made solely to DTC or its nominee, Cede & Co., as registered owner of the 2025A Bonds, for distribution to the beneficial owners of the 2025A Bond s in accordance with the procedures adopted by DTC.

Interest on the 2025A Bonds (including the final interest payment upon maturity or earlier redemption), is payable on the applicable Interest Payment Date by check of the Fiscal Agent mailed by first-class mail to the registered Owner thereof at such registered Owner’s address as it appears on the registration books maintained by the Fiscal Agent at the close of business on the Record Date preceding the Interest Payment Date, or by wire transfer made on such Interest Payment Date upon written instructions of any Owner of $1,000,000 or more in aggregate principal amount of 2025A Bonds delivered to the Fiscal Agent prior to the applicable Record Date, which will continue in effect until revoked in writing, or until such 2025A Bond s are transferred to a new Owner.

The principal of the 2025A Bonds and any premium on the 2025A Bonds are payable in lawful money of the United States of America upon surrender of the 2025A Bonds at the Principal Office of the Fiscal Agent.

Redemption*

Optional Redemption from any Source other than Prepay ments The 2025A Bonds maturing on or before September 1, 20__ are not subject to optional redemption prior to their stated maturity. The 2025A Bond s maturing on or after September 1, 20 __, are subject to redemption, as a whole or in part at the election of the City among maturities on such basis as designated by the City and by lot within a maturity, at the option of the City, on September 1, 20__, and on any date thereafter, at a redemption price equal to 100% of the principal amount of 2025A Bond s to be r edeemed, together with accrued interest thereon to the date fixed for redemption, without premium:

Mandatory Sinking Fund Redemption . The 2025A Bonds maturing on September 1, 20__ and September 1, 20 __ (collectively, the “ Term Bond s”), are subject to mandatory redemption in part by lot, from sinking fund payments made by the City from the Bond Fund, at a redemption price equal to the principal amount thereof to be redeemed , plus accrued interest to the redemption date, without premium, in t he aggregate respective principal amounts all as set forth in the following tables:

Sinking Fund
Redemption Date
(September 1)

Sinking Payments

(Maturity)

* Preliminary; subject to change.

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Sinking Fund
Redemption Date
(September 1)

Sinking Payments

(Maturity)

However, if some but not all of the Term Bonds of a given maturity have been redeemed through optional redemption or mandatory prepayment redemption, the total amount of all future Sinking Fund Payments relating to such maturity will be reduced by the aggregate principal amount of Term Bonds of such maturity so redeemed, to be allocated among such Sinking Fund Payments on a pro rata basis in integral multiples of $5,000 as determined by the City, notice of which will be given by the City to the Fiscal Agent.

Redemption from Special Tax Prepayments . Special Tax Prepayments and any corresponding transfers from the 2019 Reserve Fund under the Fiscal Agent Agreement will be used to redeem 2025A Bonds on the next Interest Payment Date for which notice of redemption can timely be given under the Fiscal Agent Agreement, among series and maturities as provided in the Fiscal Agent Agreement, at a redemption price (expressed as a percentage of the principal amount of the 2025A Bonds to be redeemed), as set forth below, together with accrued interest to the date fixed for redemption:

Redemption Dates Redemption Price
Any Interest Payment Date on or before March 1, 20__ %
September 1, 20__, and March 1, 20__
September 1, 20__, and March 1, 20__
September 1, 20__, and any Interest Payment Date thereafter

Purchase in Lieu of Redemption. In lieu of redemption, moneys in the Bond Fund may be used and withdrawn by the Fiscal Agent for purchase of Outstanding 2025A Bonds upon the filing with the Fiscal Agent of an Officer’s Certificate requesting such purchase, at public or private sale as and when, and at such prices (including brokerage and other charges) as such Officer’s Certificate may provide, but in no event may 2025A Bonds be purchased at a price in excess of the principal amount thereof, plus interest accrued to the date of purchase and any premium which would otherwise be due if such 2025A Bonds were to be redeemed in accordance with the Fiscal Agent Agreement. Any 2025A Bonds purchased pursuant to the Fiscal Agent Agreement shall be treated as Outstanding 2025A Bonds under the Fiscal Agent Agreement, except to the extent otherwise directed by the Finance Director.

Notice of Redemption. The Fiscal Agent will cause notice of any redemption to be mailed by first-class mail, postage prepaid, at least 30 days but not more than 60 days prior to the date fixed for redemption, to the Securities Depositories, and to the respective registered Owners of any 2025A Bonds designated for redemption, at their addresses appearing on the 2025A Bond registration books in the Principal Office of the Fiscal Agent; but such mailing will not be a condition precedent to such redemption and failure to mail or to receive any such notic e, or any defect therein, will not affect the validity of the proceedings for the redemption of such 2025A Bonds. In addition, the Fiscal Agent will file each notice of redemption with the MSRB through its EMMA system. The sole remedy for failure to file such notices through EMMA shall be an action

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by the holders of the Bonds in mandamus for specific performance or a similar remedy to compel performance.

However, while the 2025A Bonds are subject to DTC’s book -entry system, the Fiscal Agent will be requir ed to give notice of redemption only to DTC as provided in the letter of representations executed by the City and received and accepted by DTC. DTC and the Participants will have sole responsibility for providing any such notice of redemption to the Beneficial Owners of the 2025A Bond s to be redeemed. Any failure of DTC to notify any Participant, or any failure of Participants to notify the Beneficial Owner of any 2025A Bonds to be redeemed, of a notice of redemption or its content or effect will not affect the validity of the notice of redemption, or alter the effect of redemption set forth in the Fiscal Agent Agreement.

Rescission of Redemption. Notices of optional redemption may be conditional. The City has the right to rescind any notice of the optional redemption of 2025A Bonds by written notice to the Fiscal Agent on or prior to the date fixed for redemption. Any notice of redemption will be cancelled and annulled if for any reason funds will not be or are not available on the date fixed for redemption for the payment in full of the 2025A Bonds then called for redemption, and such cancellation will not constitute a default under the Fiscal Agent Agreement.

The City and the Fiscal Agent have no liability to the Owners or any other party related to or arising from such rescission of redemption. The Fiscal Agent will mail notice of such rescission of redemption in the same manner as the original notice of redemption was sent under the Fiscal Agent Agreement.

Partial Redemption. Whenever provision is made in the Fiscal Agent Agreement for the redemption of less than all the Bonds of any maturity or any given portion thereof, unless otherwise directed by the City, the Fiscal Agent will select the Bonds to be redeemed from all Bonds or such given portion thereof not previously called for redemption as directed by the City or, in the absence of direction by the City, on a pro rata basis, among series and maturities, and, so as to maintain substantially the same Debt Service profile for the Bonds as in effect prior to such redemption, and by lot within a maturity, in any manner which the Fiscal Agent in its sole discretion deems appropriate.

Effect of Redemption. From and after the date fixed for redemption, if funds available for the payment of the principal of, and interest and any premium on, the 2025A Bonds called for redemption have been deposited in the Bond Fund, those 2025A Bonds will cease to be entitled to any benefit under the Fiscal Agent Agreement other than the right to receive payment of the redemption price, and no interest will accrue thereon on or after the redemption date specified in the notice of redemption.

Issuance of Future Parity Bonds

Parity Bonds. In addition to the 2019A Bonds and the 2025A Bonds, the City may issue one or more additional series of bonds or other indebtedness (collectively, “ Parity Bonds ”) payable from the Special Tax Revenues on a parity with the 2019A Bonds and the 2025A Bonds, in such principal amount as may be determined by t he City, under a Supplemental Agreement entered into by the City and the Fiscal Agent. Any such Parity Bonds will constitute Bonds under the Fiscal Agent Agreement and will be secured by a lien on the Special Tax Revenues and funds pledged for the payment of the 2019A Bonds and 2025A Bonds under the Fiscal Agent Agreement on a parity with all other Bonds Outstanding thereunder, except as provided therein or in a Supplemental Agreement.

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The City may issue such Parity Bonds if the City complies with the conditions precedent set forth in the Fiscal Agent Agreement, including without limitation the following:

Separate Funds; Debt Service Reserve Fund. The Supplemental Agreement providing for the issuance of such Parity Bonds may provide for the establishment of separate funds and accounts.

The Supplemental Agreement providing for issuance of the Parity Bonds shall provide for one of the following: (i) a deposit to the 2019 Reserve Fund in an amount necessary such that the amount deposited therein shall equal the 2019 Reserve Requirement following issuance of the Parity Bonds, (ii) a deposit to a reserve account for the Parity Bonds (and such other series of Parity Bonds identified by the City) in an amount defined in such Supplemental Agreement, as long as such Supplemental Agreement expressly declares that the Owners of such Parity Bonds will have no interest in or claim to the 2019 Reserve Fund and that the Owners of the Bonds covered by the 2019 Reserve Fund will have no interest in or claim to such other reserve account or (iii) no deposit to either the 2019 Reserve Fund or another reserve account as long as such Supplemental Agreement expressly declares that the Owners of such Parity Bonds will have no interest in or claim to the 2019 Reserve Fund or any other reserve account.

Improvement Area B Value. The Improvement Area B Value shall be at least four times the sum of:

(i) the aggregate principal amount of all Bonds then Outstanding, plus

(ii) the aggregate principal amount of the series of Parity Bonds proposed to be issued, plus

(iii) the aggregate principal amount of any fixed assessment liens on the parcels in Improvement Area B subject to the levy of Special Taxes, plus

(iv) a portion of the aggregate principal amount of any and all other community facilities district bonds then outstanding and payable at least partially from special taxes to be levied on parcels of land within Improvement Area B (the “Other District Bonds”) equal to the aggregate principal amount of the Other District Bonds multiplied by a fraction, the numerator of which is the amount of special taxes levied for the Other District Bonds on parcels of land within Improvement Area B, and the denominator of which is the total amount of special taxes levied for the Other District Bonds on all parcels of land against which the special taxes are levied to pay the Other District Bonds (such fraction to be determined based upon the maximum special taxes which could be levied in the year in which maximum annual debt service on the Other District Bonds occurs), based upon information from the most recent available Fiscal Year.

Coverage. The amount of the maximum Special Taxes that may be levied in each Fiscal Year under the Ordinance, the Agreement and any Supplemental Agreement shall be at least (i) 110% of the total Annual Debt Service of the then Outstanding Bonds and the proposed Parity Bonds and (ii) 100% of the total Annual Debt Service of the then Outstandi ng Bonds and the proposed Parity Bonds and the amount of the levy for Administrative Expenses in the current fiscal year. In addition, the aggregate Special Tax Prepayments that could occur after the issuance of the Parity Bonds shall be not less than the principal amount of the Outstanding Bonds and the proposed Parity Bonds.

Limitation on Principal Amount of Parity Bonds . The issuance of Parity Bonds is subject to the $25,000,000 maximum bonded indebtedness limit for Improvement Area B. As a

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result of the issuance of the 2019A Bonds and the 2025A Bonds, the remaining unissued amount of authorized bonded indebtedness of Improvement Area B is $2,135,000*.

Refunding Bonds. Notwithstanding the foregoing, the City may issue Refunding Bonds as Parity Bonds without the need to satisfy the value and coverage tests described above.

Under the Fiscal Agent Agreement, the term “ Refunding Bonds” is defined as bonds issued by the City for the District with respect to Improvement Area B, the net proceeds of which are used to refund all or a portion of the then-Outstanding Bonds; provided that the principal and interest on the Refunding Bonds to their final maturity date is less than the principal and interest on the Bonds being refunded to their final maturity date, and the final maturity of the Refunding Bonds is not later than the final maturity of the Bonds being refunded.

Subordinate Bonds. Nothing in the Fiscal Agent Agreement prohibits the City from issuing any other bonds or oth erwise incurring debt secured by a pledge of the Special Tax Revenues subordinate to the pledge thereof under the Fiscal Agent Agreement.

See “APPENDIX C – SUMMARY OF CERTAIN PROVISIONS OF THE FISCAL AGENT AGREEMENT” for additional details regarding the conditions for issuing Parity Bonds.

Registration, Transfer and Exchange

The following provisions regarding the exchange and transfer of the 2025A Bonds apply only during any period in which the 2025A Bonds are not subject to DTC’s book -entry system.

While the 2025A Bonds are subject to DTC’s book-entry system, their exchange and transfer will be effected through DTC and the Participants and will be subject to the procedures, rules and requirements established by DTC. See “ APPENDIX D – DTC AND THE BOOK-ENTRY ONLY SYSTEM.”

Registration. The Fiscal Agent will keep, or cause to be kept, at its Principal Office sufficient books for the registration and transfer of the 2025A Bonds, which will show the series number, date, amount, rate of interest and last known owner of each 2025A Bond and will at all times be open to inspection by the City during regular business hours upon reasonable notice; and, upon presentation for such purpose, the Fiscal Agent will, under such reasonable regulations as it may prescribe, register or transfer or cause to be registered or transferred, on said books, the ownership of the 2025A Bonds as provided in the Fiscal Agent Agreement.

The City and the F iscal Agent will treat the Owner of any 2025A Bond whose name appears on the Bond register as the absolute Owner of such 2025A Bond for any and all purposes, and the City and the Fiscal Agent will not be affected by any notice to the contrary. The City and the Fiscal Agent may rely on the address of the Owner as it appears in the Bond register for any and all purposes.

Registration of Exchange or Transfer . Any 2025A Bond may, in accordance with its terms, be transferred, upon the Bond register by the person in whose name it is registered, in person or by such person’s duly authorized attorney, upon surrender of such 2025A Bond for cancellation, accompanied by delivery of a duly written instrument of transfer in a form acceptable to the Fiscal Agent.

* Preliminary; subject to change.

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2025A Bonds may be exchanged at the Principal Office of the Fiscal Agent solely for a like aggregate principal amount of 2025A Bonds of authorized denominations and of the same maturity.

The cost for any services rendered or any expenses incurred by the Fiscal Agent in connection with any such transfer or exchange will be paid by the City from amounts in the Administrative Expense Fund . The Fiscal Agent will collect from the Owner requesting such transfer or exchange any tax or other governmental charge required to be paid with respect to such transfer or exchange. Whenever any 2025A Bond or 2025A Bonds are surrendered for transfer or exchange, the City will execute and the Fiscal Agent will authenticate and deliver a new 2025A Bond or 2025A Bonds, for a like aggregate principal amount.

No transfers or exchanges of 2025A Bonds will be required to be made (i) 15 days prior to the date established by the Fiscal Agent for selection of 2025A Bonds for redemption or (ii) with respect to a 2025A Bond after su ch 2025A Bond has been selected for redemption; or (iii) between a Record Date and the succeeding Interest Payment Date.

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DEBT SERVICE SCHEDULE AND PROJECTED COVERAGE

The following table presents the annual Debt Service on the 2019A Bonds and the 2025A Bonds (including sinking fund redemptions), assuming there are no optional redemptions or special redemptions from Special Tax prepayments , along with the Maximum Special Tax levy and projected debt service coverage.

Year Ending
September 1
2025A
Bonds
Principal*
2025A
Bonds
Interest*
2019A
Bonds Debt
Service
Total
Debt Service*
Maximum
Special Tax
Levy
Projected Debt
Service Coverage
2025 $ $ $1,123,400 $ $
2026 1,146,800
2027 1,172,050
2028 1,195,550
2029 1,217,300
2030 1,242,300
2031 1,265,300
2032 1,291,300
2033 1,320,050
2034 1,346,300
2035 1,370,050
2036 1,401,300
2037 1,427,250
2038 1,458,250
2039 1,486,000
2040 1,515,500
2041 1,546,500
2042 1,573,750
2043 1,607,250
2044 1,641,500
2045 1,671,250
2046 1,706,500
2047 1,741,750
2048 1,776,750
2049 1,811,250
2050 --
2051 --
2052 --
2053 --
2054 --
2055 --
Total: $ $ $36,055,200 $ $

Sources: Stifel, Nicolaus & Company, Inc.; Goodwin Consulting Group, Inc.

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SECURITY FOR THE 2025A BONDS

This section generally describes the security for the 2025A Bonds set forth in the Fiscal Agent Agreement, which is summarized in more detail in APPENDIX C. Capitalized terms used but not defined in the section are defined in APPENDIX C.

General

The 2025A Bonds and any Parity Bonds , including the 2019A Bonds (collectively, the “Bonds”), are secured by a first pledge (which will be effected in the manner and to the extent provided in the Fiscal Agent Agreement) of all of the Special Tax Revenues and all moneys deposited in the Bond Fund (including the Special Tax Prep ayments Account), and, until disbursed as provided therein, in the Special Tax Fund.

The Special Tax Revenues and all moneys deposited into such funds (except as otherwise provided in the Fiscal Agent Agreement) are dedicated to the payment of the princi pal of, and interest and any premium on, the Bonds as provided in the Fiscal Agent Agreement and in the Act until all of the Bonds have been paid and retired or until moneys or Federal Securities have been set aside irrevocably for that purpose under the Fiscal Agent Agreement.

The 2025A Bonds constitute Related Parity Bonds under the Fiscal Agent Agreement. The 2025A Bonds, the 2019A Bonds, and all Related Parity Bonds will be secured by a first pledge (which pledge will be effected in the manner and to t he extent provided in the Fiscal Agent Agreement) of all moneys deposited in the 2019 Reserve Fund. The moneys in the 2019 Reserve Fund (except as otherwise provided in the Fiscal Agent Agreement) are dedicated to the payment of the principal of, and interest and any premium on, the 2025A Bonds, the 2019A Bonds, and all Related Parity Bonds as provided in the Fiscal Agent Agreement and in the Act until all of the 2025A Bonds, the 2019A Bonds, and all Related Parity Bonds have been paid and retired or until moneys or Federal Securities have been set aside irrevocably for that purpose under the Fiscal Agent Agreement.

The 2025A Bonds shall be secured by a first pledge (which will be effected in the manner and to the extent provided in the Fiscal Agent Agreement ) of all moneys deposited in the 2025 Capitalized Interest Account.

Amounts in the Improvement Fund, the Administrative Expense Fund and the 2025 Costs of Issuance Fund are not pledged t o the repayment of the Bonds. The Project is not pledged to the repayment of the Bonds, nor are the proceeds of any condemnation or insurance award received by the City with respect to the Project.

“Special Tax Revenues” are defined in the Fiscal Agent Ag reement as the proceeds of the Special Taxes received by the City, including any scheduled payments thereof and any Special Tax Prepayments, interest thereon and proceeds of the redemption or sale of property sold as a result of foreclosure of the lien of the Special Taxes to the amount of said lien and interest thereon.

However, Special Tax Revenues do not include any interest in excess of the interest due on the Bonds, or any penalties collected in connection with any such foreclosure.

Limited Obligation

The 2025A Bonds are neither a general obligation of the City nor are they payable from the general fund of the City; and are instead limited obligations of the City payable

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from Special Tax Revenues as described herein. Except with respect to the Special Tax Revenues, neither the faith and credit nor the taxing power of the City or the State or any political subdivision thereof is pledged for the payment of the 2025A Bonds or interest thereon, and no Owner of the 2025A Bonds may compel the exercise of the taxing power by the City or the forfeiture of any of its property.

The principal of and interest on the 2025A Bond s, and premiums upon the redemption of any thereof, are not a debt of the City (except to the limited extent described in this Official Statement), the State of California or any of its political subdivisions, within the meaning of any constitutional or statutory limitation or restriction. The 2025A Bonds are not a legal or equitable pledge, charge, lien o r encumbrance, upon any property or income, receipts or revenues of the City, except the Special Tax Revenues that are, under the terms of the Fiscal Agent Agreement, pledged for the payment of the 2025A Bonds and interest thereon. Neither the members of the City Council nor any persons executing the 2025A Bonds are liable personally on the 2025A Bonds by reason of their issuance.

Special Taxes

Covenant to Levy Special Taxes. The City will fix and levy the amount of Special Taxes within Improvement Area B required for the payment of principal of and interest on any outstanding Bonds of the District with respect to Improvement Area B becoming due and payable during the ensuing calendar year, including any necessary replenishment or expenditure of the 2019 Reserve Fund and any other reserve account for Parity Bonds that are not Related Parity Bonds, and an amount estimated to be sufficient to pay the Administrative Expenses, including amounts necessary to discharge any rebate obligation, during such year, taking into account the balances in the applicable funds established under the Fiscal Agent Agreement and funds in the Special Tax Fund.

The Special Taxes so levied may not exceed the authorized amounts as provided in the proceedings under the Resolution of Formation.

Manner of Collection. Except as set forth in the Ordinance, the Fiscal Agent Agreement provides that the Special Taxes will be payable and be collected in the same manner and at the same time and in the same installment as the general taxes on real property are payable, and have the same priority, become delinquent at the same time and in the same proportionate amounts and bear the same proportionate penalties and interest after delinquency as do the ad valorem taxes on real property. The City is authorized to employ consultants to assist in computing the levy of the Special Taxes under the Fiscal Agent Agreement and any reconciliation of amounts levied to amounts received. The fees and expenses of such consultants and the costs and expenses of the City (including a charge for staff time) in conducting its duties under the Fiscal Agent Agreement will be an Administrative Expense.

Because the Special Tax levy is limited to the maximum Special Tax rates set forth in the Rate and Method, no assurance can be given that, in the event of Special Tax delinquencies, the receipts of Special Taxes will, in fact, be collected in sufficient am ounts in any given year to pay Debt Service on the Bonds. Further, under no circumstances will the Special Tax levied against any parcel of residential property for which an occupancy permit for private residential use has been issued be increased by more than 10% as a consequence of delinquency or default by the owner of any other parcel within the District. In addition, in no event shall Special Taxes be levied after Fiscal Year 2056-57. See “BOND OWNERS’ RISKS – Property Tax Delinquencies.”

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Rate and Method

General. The Special Tax will be levied and collected according to the Rate and Method, which provides the means by which the City Council may annually levy the Special Taxes within Improvement Area B of the District, up to the maximum Special Tax rates, and to determine the amount of the Special Tax that will need to be collected each Fiscal Year from the “ Taxable Property” within the District.

The following is a summary of the provisions of the Rate and Method, which should be read in conjunct ion with the complete text of the Rate and Method, including its attachments, which is attached as “APPENDIX B – RATE AND METHOD OF APPORTIONMENT FOR

IMPROVEMENT AREA B OF THE CITY OF FAIRFIELD COMMUNITY FACILITIES DISTRICT NO. 2016-1 (VILLAGES AT FAIRFIELD).” Capitalized terms used but not defined in this section have the meanings as set forth in APPENDIX B. This section provides only a summary of the Rate and Method, and is qualified by more complete and detailed information contained in the entire Rate and Method attached as APPENDIX B.

Special Tax Requirement. Annually, at the time of levying the Special Tax for the District, the Administrator will determine the Special Tax Requirement. The Rate and Method defines “Special Tax Requirement” to mean the amount required in any Fiscal Year for Improvement Area B to:

(i) pay debt service on all Outstanding Bonds,

(ii) pay periodic costs on the Bonds, including but not limited to, credit enhancement and rebate payments on the Bonds,

(iii) pay Administrative Expenses,

(iv) pay any amounts required to establish or replenish any reserve funds for all Outstanding Bonds,

(v) pay directly for acquisition or construction of facilities eligible to be financed by the District, to the extent that the inclusion of this amount does not result in a tax on Undeveloped Property, and

(vi) pay for reasonably anticipated delinquent Special Taxes based on the delinquency rate for Special Taxes levied in the previous Fiscal Year,

less a credit for funds available to reduce the annual Special Tax levy, as determined by the CFD Administrator pursuant to the Indenture.

Annual Determination of Property Categories for Administration of Special Tax.

Each Fiscal Year, all Taxable Property within Improvement Area B will be classified as Developed Property, Taxable Property Owner Association Property, Taxable Public Property, or Undeveloped Property, and will be subject to Special Taxes in accordance with Sections C and D of the Rate and Method, as described below. All Developed Property will be assigned to the Land Use Classes shown below.

“Developed Property” means, for each Fiscal Year, all Taxable Property, exclusive of Taxable Property Owner Association Property and Taxable Public Property, for which a building permit for new construction was issued prior to June 30 of the previous Fiscal Year.

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“Taxable Property Owner Association Property ” means all Assessor's Parcels of Property Owner Association Property that are not exempt pursuant to Section E of the Rate and Method, as described below.

“Taxable Public Property” means all Assessor's Parcels of Public Property that are not exempt pursuant to Section E of the Rate and Method, as described below.

“Undeveloped Property” means, for each Fiscal Year, all Taxable Property not classified as Developed Property, Taxable Property Owner Association Property, or Taxable Public Property.

Maximum Special Tax. The Maximum Special Tax is defined in the Rate and Method as follows:

Developed Property. The Maximum Special Tax for each Assessor's Parcel classified as Developed Property shall be the greater of (i) the amount derived by application of the Assigned Special Tax and (ii) the amount derived by application of the Backup Special Tax.

(i) Assigned Special Tax. The Fiscal Year 2025-26 Assigned Special Taxes are shown in the following table.

Table 1
Improvement Area B of the
City of Fairfield
CFD No. 2016-1 (Villages at Fairfield)
Fiscal Year 2025-26
Assigned Special Taxes and Projected Special Tax Levy

Land
Use
Class Description
Fiscal Year 2025-26
Assigned Special Tax
Taxable
Parcels (1)
Assigned FY
2025-26
Special Tax
Revenues
Projected FY
2025-26 Special
Tax Levy
1 Residential Property
(>= 2,700 SF)
$4,044.19 per Dwelling Unit 42 $169,856 $156,541
2 Residential Property
(2,275 SF – 2,699 SF)
$3,353.43 per Dwelling Unit 90 $301,809 $278,150
3 Residential Property
(<2,275 SF)
$3,115.61 per Dwelling Unit 300 $934,682 $861,414
4 Non-Residential Property $1.84 per sq. ft. of Non-
Residential Floor Area
0 - -
432 $1,406,347 $1,296,105

(1) Based on permit information and land use data compiled by Willdan Financial Services through June 30, 2024, and by Goodwin Consulting Group, Inc. from July 1, 2024 through February 18, 2025.

Source: City of Fairfield; Goodwin Consulting Group, Inc.

(ii) Backup Special Tax. The Fiscal Year 2025-26 Backup Special Tax is $31,048.50. The Backup Special Tax attributable to a Final Subdivision will equal $ 31,048.50 multiplied by the Acreage of all Taxable Property, exclusive of any Taxable Property Owner Association Property and Taxable Public Property, therein. If the Final S ubdivision includes only Residential Lots, the Backup Special Tax for each Residential Lot will be computed by dividing the Backup Special Tax attributable to the applicable Final Subdivision by the number of Residential Lots within that Final Subdivision. If the Final Subdivision includes only Non -Residential

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Property, the Backup Special Tax for each Assessor's Parcel of Non - Residential Property will be computed by multiplying the Backup Special Tax by the Acreage of such Assessor's Parcel.

If a Final S ubdivision includes Assessor's Parcels of Taxable Property for which building permits for both residential and non-residential construction have been issued, excluding Taxable Property Owner Association Property and Taxable Public Property, then the Backup Special Tax for each Dwelling Unit shall be calculated according to the formulas listed in Section C of the Rate and Method.

Moreover, if all or any portion of the Final Subdivision(s) described in the preceding paragraphs is subsequently changed or mod ified by recordation of a lot line adjustment or similar instrument, and only if the CFD Administrator determines that such change or modification results in a decrease in the number of Residential Lots or the square footage of Non- Residential Floor Area w ithin the Final Subdivision, then the Backup Special Tax for each Assessor's Parcel of Developed Property that is affected by the lot line adjustment or similar instrument for such Final Subdivision shall be a rate per Acre as calculated in Section C of the Rate and Method . The Backup Special Tax previously determined for an Assessor's Parcel of Developed Property that is not affected by the lot line adjustment or similar instrument for such Final Subdivision shall not be recalculated.

(iii) Increase in the Assigned Special Tax and Backup Special Tax. On each July 1, the Assigned Special Tax and the Backup Special Tax will be increased by an amount equal to 2.00% of the amount in effect for the previous Fiscal Year.

Undeveloped Property, Taxable Property Owner Association Property, and Taxable Public Property. The Fiscal Year 2025-26 Maximum Special Tax for Undeveloped Property, Taxable Property Owner Association Property, and Taxable Public Property in Improvement Area B is $31,048.50 per Acre.

On each July 1, the Maximum Special Tax for Undeveloped Property, Taxable Property Owner Association Property, and Taxable Public Property will be increased by an amount equal to 2.00% of the amount in effect for the previous Fiscal Year.

Multiple Land Uses . In cases wh ere an Assessor's Parcel contains both Undeveloped Property and Developed Property or where Developed Property contains more than one Land Use Class, the Acreage of the Assessor's Parcel will be allocated between Developed Property and Undeveloped Property based the portion of the Assessor's Parcel for which building permits had been issued prior to June 30 of the prior Fiscal Year and portion of the Assessor's Parcel for which building permits had not been issued prior to June 30 of the prior Fiscal Year, as reasonably determined by the CFD Administrator.

The Acreage that is considered Undeveloped Property will be taxed at the Maximum Special Tax rate set forth in Section C.2 of the Rate and Method. The Acreage that is considered Developed Property will be allocated between Residential Property and Non-Residential Property based on the site plan, condominium plan, information provided by the City or developer, or other sources. If an Assessor's Parcel of Developed Property

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includes both Residential Property and Non-Residential Property, the CFD Administrator will (i) determine the size of each Dwelling Unit on the Assessor's Parcel and apply the Assigned Special Tax to such Dwelling Units, and (ii) determine the Non-Residential Floor Area and apply the Assigned Special Tax accordingly.

The Maximum Special Tax that can be levied on such Assessor's Parcel will be the sum of the Maximum Special Tax that can be levied on each type of property located on that Assessor's Parcel, as calculated in Section C of the Rate and Method. The CFD Administrator's allocation to each type of property shall be conclusive and binding.

It should be noted that although the Rate and Method assigns a maximum special tax to both Residential Property and Non -Residential Property, the Taxable Property in Improvement Area B is designated for development as Residential Property only.

Method of Apportionment of the Special Tax. For each Fiscal Year the CFD Administrator will determine the Special Tax Requirement and levy the Special Tax as follows:

Step 1: Prior to applying Capitalized Interest that is available under the applicable Indenture, the Special Tax will be levied Proportionately on each Assessor's Parcel of Developed Property up to 100% of the applicable Assigned Special Tax;

Step 2: If additional monies are needed to satisfy the Special Tax Requirement after the first step has been completed, the Special Tax will be levied Proportionately on each Assessor's Parcel of Undeveloped Property at up to 100% of the Maximum Special Tax for Undeveloped Property;

Step 3: If additional monies are needed to satisfy the Special Tax Requirement after the first two steps have been completed, then the levy of the Special Tax on each Assessor's Parcel of Developed Property whose Maximum Special Tax is determined through the application of the Backup Special Tax will be increased in equal percentages from the Assigned Special Tax up to the Maximum Special Tax for each such Assessor's Parcel;

Step 4: If additional monies are needed to satisfy the Special Tax Requirement after the first three steps have been completed, then the Special Tax will be levied Proportionately on each Assessor's Parcel of Taxable Property Owner Association Property at up to the Maximum Special Tax for Taxable Property Owner Association Property;

Step 5: If additional monies are needed to satisfy the Special Tax Requirement after the first four steps have been completed, then the Special Tax will be levied Proportionately on each Assessor's Parcel of Taxable Public Property at up to the Maximum Special Tax for Taxable Public Property.

Exemptions. No Special Tax will be levied on up to 45.42 acres of Property Owner Association Property and Public Property. Tax -exempt status will be assigned by the CFD Administrator in the chronological order in which property becomes Property Owner Association Property or Public Property. However, should an Assessor's Parcel no longer be classified as Property Owner Association Property or Public Property, its tax-exempt status will be revoked.

Property Owner Association Property and Public Property that is not exempt from Special Taxes as described in the above paragraph will be Taxable Property Owner Association Property or Taxable Public Property, respectively, and taxed as set forth in the Rate and Method.

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Prepayment of Special Tax. The obligation of an Assessor's Parcel to pay the Special Tax may be prepaid and permanently satisfied provided that the terms set forth under the Rate and Method are satisfied, including the following conditions:

 There are no delinquent Special Taxes with respect to such Assessor' s Parcel at the time of prepayment.

 An owner of an Assessor’s Parcel intending to prepay the Special Tax obligation is required to provide the CFD Administrator with written notice of intent to prepay.

Within 30 days of receipt of such written notice, th e CFD Administrator will notify such owner of the prepayment amount for such Assessor’s Parcel. The CFD Administrator may charge a reasonable fee for providing this service. Prepayment must be made not less than 45 days prior to the next occurring date that notice of redemption of Bonds from the proceeds of such prepayment may be given to the Trustee pursuant to the Indenture.

The Prepayment Amount is calculated based on the Bond Redemption Amount plus Redemption Premium and other costs, all as specified in “APPENDIX B – RATE AND METHOD

OF APPORTIONMENT FOR IMPROVEMENT AREA B OF THE CITY OF FAIRFIELD COMMUNITY FACILITIES DISTRICT NO. 2016-1 (VILLAGES AT FAIRFIELD) – Section I.1.”

The Special Tax on an Assessor's Parcel of Developed Property or an Assessor's Parcel of Undeveloped Property for which a building permit has been issued may be partially prepaid as specified in APPENDIX B – RATE AND METHOD OF APPORTIONMENT FOR IMPROVEMENT AREA B OF THE CITY OF FAIRFIELD COMMUNITY FACILITIES DISTRICT NO. 2016 -1 (VILLAGES AT FAIRFIELD) – Section I.2.”

Covenant to Foreclose

Sale of Property for Nonpayment of Taxes. The Fiscal Agent Agreement provides that the Special Taxes are to be payable and collected in the same manner as ordinary ad valorem property taxes are collected and, except as provided in the special covenant for foreclosure described below and in the Act, is to be subject to the same penalties and the same procedure, sale and lien priority in case of delinquency as is provided for ad valorem property taxes. Under these procedures, if taxes are unpaid for a period of five years or more, the property is subject to sale by the County.

Foreclosure Under the Act. Under Section 53356.1 of the Act, if any delinquency occurs in the payment of the Special Tax, the City may order the institution of a Superior Court action to foreclose the lien therefor within specified time limits. In such an action, the real property subject to the unpaid amount may be sold at judicial foreclosure sale.

While judicial foreclosure is not mandatory under the Act, the City will agree in the Fiscal Agent Agreement that on or about March 30 and July 30 of each Fiscal Year, the City will:

(1) compare the amount of Special Taxes previously levied in Improvement Area B to the amount of Special Tax Revenues received by the City, and

(2) because it is the County’s practice under the Guidelines (as hereinafter defined) to apportion Special Taxes to the City as if the Special Taxes were covered by the Teeter Plan (as hereinafter defined) even though Special Taxes are not covered by the County’s Teeter Plan as further described below (see “ – Special Taxes Are Not

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Covered By Teeter Plan”) , the City will make a good faith effort at the time of each apportionment of Special Taxes to obtain information from the County as to the Special Tax delinquencies represented by such apportionment.

Thereafter, if delinquencies have occurred, the City will proceed as follows:

Individual Parcel Delinquencies. If the City determines that any single parcel subject to the Special Tax in Improvement Area B is delinquent in the payment of Special Taxes in the aggregate amount of $2,000 or more, then the Finance Director will send or cause to be sent a notice of delinquency (and a demand for immediate payment thereof) to the property owner within 45 days of s uch determination, and (if the delinquency remains uncured) foreclosure proceedings will be commenced by the City within 90 days of such determination.

Notwithstanding the foregoing, the City may defer any such actions with respect to a delinquent parcel if (1) the Special Taxes are covered by the County’s Teeter Plan, or an equivalent procedure, but only to the extent that the City cannot be required to repay the County for amounts apportioned by the County to the City that represent delinquent Special Taxes, (2) the amount in the 2019 Reserve Fund is at least equal to the 2019 Reserve Requirement, (3) the amount in the reserve account for any Parity Bonds that are not Related Parity Bonds is at least equal to the required amount and (4) the subject parcel is not delinquent with respect to more than $5,000 of Special Taxes.

Aggregate Delinquencies . If the City determines that (i) the total amount of delinquent Special Tax for the prior Fiscal Year for the entire Improvement Area B (including the total of delinquencies under the two paragraphs above), exceeds 5% of the total Special Tax due and payable for the prior Fiscal Year, or (ii) there are 10 or fewer owners of real property within Improvement Area B, determined by reference to the latest available secured property tax roll of the County, the City shall notify or cause to be notified property owners who are then delinquent in the payment of Special Taxes (and demand immediate payment of the delinquency) within 45 days of such determination, and sha ll commence foreclosure proceedings within 90 days of such determination against each parcel of land in Improvement Area B with a Special Tax delinquency.

Individual Owner Delinquencies. As to any owner of more than one parcel within Improvement Area B , if the City determines that the aggregate amount of delinquent Special Taxes for all preceding tax years on all parcels owned by such owner (whether such parcels are owned solely by such owner or jointly by such owner and one or more others) exceeds $5,00 0, then the City shall send or cause to be sent a notice of delinquency (and a demand for immediate payment thereof) to the property owner within 45 days of such determination, and (if the delinquency remains uncured) shall commence foreclosure proceedings within 90 days of such determination, regardless of when such delinquencies occurred.

Sufficiency of Foreclosure Sale Proceeds; Foreclosure Limitations and Delays. No assurances can be given that the real property subject to a judicial foreclosure sale will be sold or, if sold, that the proceeds of sale will be sufficient to pay any delinquent Special Tax installment.

The Act does not require the City to purchase or otherwise acquire any lot or parcel of property foreclosed upon if there is no other purchaser at such sale.

Section 53356.6 of the Act requires that property sold pursuant to foreclosure under the Act be sold for not less than the amount of judgment in the foreclosure action, plus post-judgment interest and authorized costs, unless the consent of the owners of 75% of the Outstanding Bonds

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is obtained. However, under Section 53356.5 of the Act, the City, as judgment creditor, is entitled to purchase any property sold at foreclosure using a “credit bid,” where the City could submit a bid crediting all or part of the amount required to satisfy the judgment for the delinquent amount of the Special Taxes. If the City becomes the purchaser under a credit bid, the City must pay the amount of its credit bid into the redemption fund established for the Bonds, but this payment may be made up to 24 months after the date of the foreclosure sale.

Foreclosure by court action is subject to normal litigation delays, the nature and extent of which are largely dependent on the nature of the defense, if any, put forth by the debtor and the Superior Court calendar. In addition, the ability of the City to foreclose the lien of delinquent unpaid Special Taxes may be lim ited in certain instances and may require prior consent of the property owner if the property is owned by or in receivership of the Federal Deposit Insurance Corporation (the “FDIC”). See “BOND OWNERS' RISKS – Bankruptcy Delays.”

Special Taxes Are Not Covered By Teeter Plan. The County has adopted written guidelines for its Alternative Method of Tax Apportionment (“ Teeter Plan”), as set forth in the “County of Solano Guideline - Solano County Teeter Program” dated March 25, 2004 (the “Guidelines”). Under the Guidelines, (i) Special Taxes are not covered by the County’s Teeter Plan, (ii) notwithstanding that Special Taxes are not covered by the County’s Teeter Plan, for administrative convenience, the County will apportion Special Taxes to the City as if the Special Taxes were covered by the Teeter Plan and (iii) the County may demand the repayment by the City of apportionments that represent delinquent Special Taxes when the County determines that the collection of the delinquent Special Taxes is unlikely.

As a result, the City is permitted under the Fiscal Agent Agreement to use Special Taxes at any time to repay the County for amounts apportioned by the County to the City that represent delinquent Special Taxes if failure to do so will cause the County to withhold property tax revenues (other than Special Taxes) that would o therwise be apportioned to the City; provided, however, that in the event the County asks the City to repay it for the apportionment of amounts that represent delinquent Special Taxes, the City will make a good faith effort to negotiate a payment plan with the County that will not require the City to repay the County with Special Taxes if doing so will result in there being insufficient Special Tax Revenues to pay debt service on the Bonds when due. Therefore, the District’s receipt of Special Taxes will be impacted by delinquencies in payment, as well as by the collection of interest and penalties on past delinquencies in the future.

See “THE DISTRICT AND IMPROVEMENT AREA B – Potential Consequences of Special Tax Delinquencies” and “BOND OWNERS’ RISKS – Property Tax Delinquencies.”

Special Tax Fund

Deposits. Under the Fiscal Agent Agreement, the Special Tax Fund is established as a separate fund to be held by the Fiscal Agent, to the credit of which the Fiscal Agent will deposit amounts received from or on behalf of the City consisting of Special Tax Revenues and amounts transferred from the Administrative Expense Fund and the Bond Fund. The City will promptly remit any Special Tax Revenues received by it to the Fiscal Agent for deposit by the Fiscal Agen t to the Special Tax Fund.

Notwithstanding the foregoing,

(i) Special Tax Revenues in an amount not to exceed the amount included in the Special Tax levy for such Fiscal Year for Administrative Expenses shall be separately identified by the Finance Director and shall be deposited by the Fiscal Agent in the Administrative Expense Fund;

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(ii) any Special Tax Revenues constituting the collection of delinquencies in payment of Special Taxes shall be separately identified by the Finance Director and shall be disposed of by the Fiscal Agent first, for transfer to the Bond Fund to pay any past due Debt Service on the Bonds; second, without preference or priority, for transfer to the 2019 Reserve Fund to the extent needed to increase the amount then on deposi t in the 2019 Reserve Fund up to the then 2019 Reserve Requirement and for transfer to the reserve account for any Parity Bonds that are not Related Parity Bonds to the extent needed to increase the amount then on deposit in such reserve account up to the amount then required to be deposited therein (and in the event the collection of delinquencies in payment of Special Taxes is not sufficient for the purposes of this clause, such amounts shall be applied to the 2019 Reserve Fund and any other reserve accounts ratably based on the then Outstanding principal amount of the Bonds) ; and third, to be held in the Special Tax Fund for use as described in “– Disbursements” below; and

(iii) any proceeds of Special Tax Prepayments shall be separately identified by the Finance Director and shall be deposited by the Fiscal Agent as follows (as directed in writing by the Finance Director): (a) that portion of any Special Tax Prepayment constituting a prepayment of construction costs (w hich otherwise could have been included in the proceeds of Parity Bonds) shall be deposited by the Fiscal Agent to the Improvement Fund and (b) the remaining Special Tax Prepayment shall be deposited by the Fiscal Agent in the Special Tax Prepayments Account established pursuant to the Fiscal Agent Agreement.

Moneys in the Special Tax Fund will be held by the Fiscal Agent for the benefit of the City and Owners of the Bonds, will be disbursed as provided below and, pending disbursement, will be subject to a lien in favor of the Owners of the Bonds.

Disbursements. On the fifth Business Day prior to each Interest Payment Date, the Fiscal Agent will withdraw from the Special Tax Fund and transfer the following amounts in the following order of priority:

(i) to the Bond Fund an amount, taking into account any amounts then on deposit in the Bond Fund and any expected transfers from the Improvement Fund, the 2019 Reserve Fund and any reserve account for Parity Bonds that are not Related Parity Bonds, the Capitalized Interest Account and the Special Tax Prepayments Account to the Bond Fund such that the amount in the Bond Fund equals the principal (including any sinking payment), premium, if any, and interest due on the Bonds on such Interest Payment Date or redemption date and any past due principal or interest on the Bonds not theretofore paid from a transfer described in the Fiscal Agent Agreement, and

(ii) without preference or priority (a) to the 2019 Reserve Fund an amount, taking into account amounts t hen on deposit in the 2019 Reserve Fund, such that the amount in the 2019 Reserve Fund is equal to the 2019 Reserve Requirement, and (b) to the reserve account for any Parity Bonds that are not Related Parity Bonds, taking into account amounts then on deposit in the such reserve account, such that the amount in such reserve account is equal to the amount required to be on deposit therein (and in the event that amounts in the Special Tax Fund are not

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sufficient for the purposes of this paragraph, such amounts will be applied to the 2019 Reserve Fund and any other reserve accounts ratably based on the then Outstanding principal amount of the Bonds).

(iii) between each September 2, beginning on September 2, 2019, and the immediately succeeding December 31, the City may direct the Fiscal Agent to transfer any of the moneys remaining in the Special Fund to (A) the Remainder Taxes Account or (B) the Administrative Expense Fund.

As described above, because it is the County’s practice under the Guidelines to apportion Special Taxes to the City as if the Special Taxes were covered by the Teeter Plan even though Special Taxes are not covered by the County’s Teeter Plan , the City may use Special Taxes at any time to repay the County for amounts apportioned by the County to the City that represent delinquent Special Taxes if failure to do so will cause the County to withhold property tax revenues (other than Special Taxes) that would otherwise be apportioned to the City. See “– Special Taxes Are Not Covered By Teeter Plan.”

Bond Fund

Deposits. The Fiscal Agent will hold the moneys in the Bond Fund for the benefit of the City and the Owners of the Bonds, and will disburse those funds for the payment of the principal of, and interest and any premium on, the Bonds as described below.

Under the Fiscal Agent Agreement, within the Bond Fund there is established a separate account designated as the “Capitalized Interest Account” to be held in trust by the Fiscal Agent for the benefit of the City and the Owners of the Bonds i nto which will be deposited the amount specified in the Fiscal Agent Agreement. Amounts on deposit in the Capitalized Interest Account will be used and withdrawn by the Fiscal Agent solely for the payment of interest on the Bonds.

When the amount in the Capitalized Interest Account is fully expended for the payment of interest, the account will be closed.

There is also created in the Bond Fund a separate account to be held by the Fiscal Agent, designated the “Special Tax Prepayments Account,” to the credit of which deposits will be made as provided in the Fiscal Agent Agreement.

Disbursements. At least 10 Business Days before each Interest Payment Date, the Fiscal Agent will notify the Finance Director in writing as to the principal and premium, if any, and interest due on the Bonds on the next Interest Payment Date (whether as a result of sched uled principal of and interest on the Bonds, optional redemption of the Bonds or a mandatory sinking fund redemption). On each Interest Payment Date, the Fiscal Agent will withdraw from the Bond Fund and pay to the Owners of the Bonds the principal of, and interest and any premium, due and payable on such Interest Payment Date on the Bonds. Notwithstanding the foregoing, amounts in the Bond Fund as a result of a transfer pursuant to the Fiscal Agent Agreement will be immediately disbursed by the Fiscal Agent to pay past due amounts owing on the Bonds.

At least 5 Business Days prior to each Interest Payment Date, the Fiscal Agent will determine if the amounts then on deposit in the Bond Fund are sufficient to pay the Debt Service due on the Bonds on the next Interest Payment Date. In the event that amounts in the Bond Fund are insufficient for such purpose, the Fiscal Agent promptly will notify the Finance Director by telephone (and confirm in writing) of the amount of the insufficiency.

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In the event that amounts in the Bond Fund are insufficient for the purpose set forth in the preceding paragraph with respect to any Interest Payment Date, the Fiscal Agent will do the following:

(i) Withdraw from the 2019 Reserve Fund, in accordance with the provisions of the Fiscal Agent Agreement, to the extent of any funds or Permitted Investments therein, amounts to cover the amount of such Bond Fund insufficiency related to the 2025A Bonds, the 2019A Bonds, and any Related Parity Bonds. Amounts so withdrawn from the 2019 Reserve Fund will be deposited in the Bond Fund.

(ii) Withdraw from the reserve funds, if any, established under a Supplemental Agreement related to Parity Bonds that are not Related Parity Bonds, to the extent of any funds or Permitted Investments therein, amounts to cover the amount of such Bond Fund insufficiency related to such Parity Bonds. Amounts so withdrawn from any such reserve fund will be deposited in the Bond Fund.

If, after the foregoing transfers and application of such funds for their intended purposes, there are insufficient funds in the Bond Fund to make the payments provided for in the second sentence of the first paragraph under “Bond Fund – Disbursements” above, the Fiscal Agent will apply the available funds first to the payment o f interest on the Bonds, then to the payment of principal due on the Bonds other than by reason of sinking payments, if any, and then to payment of principal due on the bonds by reason of sinking payments. Each such payment will be made ratably to the Owners of the Bonds based on the then Outstanding principal amount of the Bonds, if there are insufficient funds to make the corresponding payment for all of the then Outstanding Bonds, subject to the restrictions on the uses of any funds as set forth in the F iscal Agent Agreement. Any sinking payment not made as scheduled will be added to the sinking payment to be made on the next sinking payment date. Any failure by the Fiscal Agent to provide the notices required by the Fiscal Agent Agreement will not alter the obligation of the City to make the scheduled payments from amounts in the Bond Fund.

Disbursements from the Special Tax Prepayments Account. Moneys in the Special Tax Prepayments Account will be transferred by the Fiscal Agent to the Bond Fund on the next date for which notice of redemption of Bonds can timely be given under the Fiscal Agent Agreement, and notice to the Fiscal Agent can timely be given under the Fiscal Agent Agreement, and will be used (together with any amounts transferred pursuant to the Fiscal Agent Agreement) to redeem Bonds on the redemption date selected in accordance the Fiscal Agent Agreement.

Reserve Fund

General. The 2025A Bonds constitute Related Parity Bonds (as defined below) under the Fiscal Agent Agreement. In order to further secure the payment of principal of and interest on the 2025A Bonds and any series of Parity Bonds (including the 2019A Bonds) the principal of and interest on which is payable from amounts in the 2019 Reserve Fund (“Related Parity Bonds”), certain proceeds of the 2025A Bonds will be deposited into the 2019 Reserve Fund in an amount equal to the portion of the “2019 Reserve Requirement” (as defined below) related to the 2025A Bonds so that the amount on deposit therein equals the 2019 Reserve Requirement . See “FINANCING PLAN – Estimated Sources and Uses of Funds.”

2019 Reserve Requirement. The “2019 Reserve Requirement” is defined in the Fiscal Agent Agreement to mean the sum of the following:

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(i) $1,720,736.41, which is the least of (a) Maximum Annual Debt Service on the 2019A Bonds as of the closing date of the 2019A Bonds, (b) 125% of average Annual Debt Service on the 2019A Bonds as of the closing date of the 2019A Bonds and (c) 10% of the original principal amount of the 2019A Bonds plus

(ii) with respect to any series of Related Parity Bonds the principal of and interest on which is payable from amounts in the 2019 Reserve Fund, an amount equal to the least of ( a) Maximum Annual Debt Service on such Related Parity Bonds as of the date of their issuance, (b) 125% of average Annual Debt Service on such Related Parity Bonds as of the date of their issuance and (c) 10% of the original principal amount of such Related Parity Bonds.

The 2025A Bonds constitute Related Parity Bonds under the Fiscal Agent Agreement.

With respect to clause (ii) above as it relates to the 2025A Bonds, the least of (a) Maximum Annual Debt Service on the 2025A Bonds as of the Closing Date, (b) 125% of average Annual Debt Service on the 2025A Bonds as of the Closing Date and (c) 10% of the original principal amount of the 2025A Bonds equals $__________*. Such amount will be satisfied through a dep osit of proceeds of the 2025A Bonds in the 2019 Reserve Fund and/or the purchase of a debt service reserve policy in the amount of $_________.

Disbursements. Except as otherwise provided in the Fiscal Agent Agreement , all amounts deposited in the 2019 Reserve Fund will be used and withdrawn by the Fiscal Agent solely for the purpose of making transfers to the Bond Fund in the event of any deficiency at any time in the Bond Fund of the amount then required for payment of the principal of, and interest and any premium on, the 2025A Bonds, the 2019A Bonds, and any Related Parity Bonds or, in accordance with the provisions of the Fiscal Agent Agreement , for the purpose of redeeming 2025A Bonds, the 2019A Bonds, and any Related Parity Bonds from the Bond Fund. Whenever a transfer is made from the 2019 Reserve Fund to the Bond Fund due to a deficiency in the Bond Fund for payment of the principal of, and interest and any premium on, the 2025A Bonds, the 2019A Bonds, and any Related Parity Bonds, the Fiscal Agent will provide written notice thereof to the Finance Director, specifying the amount withdrawn.

Qualified Reserve Fund Credit Instruments. The City has the right at any time to direct the Fiscal Agent to release funds from the 2019 Reserve Fund, in whole or in part, by tendering to the Fiscal Agent: (i) a Qualified Reserve Account Credit Instrument (as defined in the Fiscal Agent Agreement), and (ii) an opinion of Bond Counsel stating that neither the relea se of such funds nor the acceptance of such Qualified Reserve Account Credit Instrument will cause interest on the 2025A Bonds or any Related Parity Bonds the interest on which is excluded from gross income of the owners thereof for federal income tax purp oses to become includable in gross income for purposes of federal income taxation.

The City will have no obligation to replace a Qualified Reserve Account Credit Instrument or to fund the 2019 Reserve Fund with cash if, at any time that the 2025A Bonds or any Related Parity Bonds are Outstanding, amounts are not available to be drawn upon under the Qualified Reserve Account Credit Instrument. The City and the Fiscal Agent will comply with the terms of the Qualified Reserve Account Credit Instrument as will be required to receive payments thereunder in the event and to the extent required under the Fiscal Agent Agreement.

See “APPENDIX C – SUMMARY OF CERTAIN PROVISIONS OF THE FISCAL AGENT AGREEMENT” for a complete description of the timing, purpose and mann er of disbursements from the 2019 Reserve Fund.

* Preliminary; subject to change.

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Investment of Moneys in Funds

Moneys in any fund or account created or established by the Fiscal Agent Agreement and held by the Fiscal Agent will be invested by the Fiscal Agent in Permitted Investments, w hich in any event by their terms mature prior to the date on which such moneys are required to be paid out under the Fiscal Agent Agreement. See “APPENDIX C – SUMMARY OF CERTAIN PROVISIONS OF THE FISCAL AGENT AGREEMENT” for a definition of “Permitted Investments.”

THE DISTRICT AND IMPROVEMENT AREA B

Formation and Background

Formation. The District was established by the City Council under the Act on December 6, 2016, following a noticed public hearing. On the same date, an election was held in which the qualified landowner electors within Improvement Area B approved a ballot proposition authorizing the City to incur bonded indebtedness for Improvement Area B of up to $25,000,000 to finance the acquisition and constr uction of the authorized Facilities, to levy the Special Taxes, and to establish an appropriations limit for Improvement Area B of the District.

The District is authorized to finance the construction of authorized Facilities. See “FINANCING PLAN – Facilities Financing Plan.”

The Rate and Method by which Special Taxes may be levied is attached as “APPENDIX B – RATE AND METHOD OF APPORTIONMENT FOR IMPROVEMENT AREA B OF THE CITY OF FAIRFIELD COMMUNITY FACILITIES DISTRICT NO. 2016-1 (VILLAGES AT FAIRFIELD).” See “SECURITY FOR THE 2025A BONDS – Rate and Method” for a summary of the Rate and Method.

Improvement Areas within District. The District was originally formed to include four improvement areas: Improvement Area A, Improvement Area B, Improvement Area C and Improvement Area D.

The 2025A Bonds are secured only by the Special Taxes levied within Improvement Area B. No other special taxes of the District, including special taxes levied in Improvement Area A, Improvement Area C and Improvement Area D will be available to pay debt service on the 2025A Bonds.

Description and Location

General. The District is located on approximately 367 acres in the northeastern area of the City, to the south of Cement Hill and the Putah South Canal, north of Air Base Parkway, east of the Clay Bank Road, and west of the Gold Ridge residential development.

The District is part of a larger master planned community, The Villages at Fairfield, that overlaps the District. The Villages at Fairfield is currently planned for four residential projects (Villages I, II, III, and IV) and a 4.8-acre community commercial parcel in accordance with the Development Agreement . Planned development in the District includes construction of approximately 1,830 housing units, a commercial shopping center, two neighborhood parks, a portion of the Fairfield Linear Park, and associated public facilities, roadways, utilities and public transportation. The Master Developer anticipates that Improvement Area D, the last of the four

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planned Improvement Areas within the District, will obtain entitlement and environmental agency approvals over approximatel y the next two years, with development thereafter anticipated to include 860 medium-density residential units, 260 high-density residential units, and 10 acres of retail use. The Master Developer also intends to obtain entitlements approvals for a fifth residential project within The Villages at Fairfield, producing an additional 250 housing units and park amenities.

Development activities within the Villages at Fairfield commenced in fiscal year 2016-2017 with the construction of major backbone infrastructure linking the Villages at Fairfield to Interstate 80 via Manual Campos Parkway. Since then, additional backbone improvements have been constructed, including improvements to Air Base Parkway and Clay Bank Road, which provide for a second point of access to Interstate 80. Residential land development within the Villages at Fairfield commenced in 2017 within Village IV, along with homebuilding by Discovery Homes.

The first 77 single family homes in Village IV have been sold over a two-year period and are nearing final completion as of June 30, 2019.

The Master Developer has substantially completed backbone land development activities in Village I for this phase of development covering 432 single family residential units. Land development activities in Village III are anticipated to commence in Spring 2027 and the construction of single-family homes and multi-family units in Village III is anticipated to commence in Spring 2029.

Improvement Area B is currently designated as the site of Village I, which encompasses approximately 91.5 acres. Only certain portions of the Village I area have been developed with single family detached homes. The remaining land within Improvement Area B is planned for a neighborhood park. Under the terms of the Development Agreement, construction of the neighborhood park is anticipated to commence in Spring 2026, following plan approval that is anticipated to be received in Fall 2025.

See “APPENDIX A – GENERAL INFORMATION ABOUT THE CITY OF FAIRFIELD AND SOLANO COUNTY” for demographic and other information regarding the area in and around the District. The boundary map showing the boundaries of Improvement Area B is attached as Appendix G.

Development of Property Within Improvement Area B

General. The taxable property in Improvement Area B has been developed with a total of 432 detached single -family homes, all classified as Residential Property under the Rate and Method. The tables in this Official Statement present ownership informatio n as of January 22, 2025, at which point 422 homes in Improvement Area B were owned by individual homeowners and 10 homes were owned by D.R. Horton. As of February 28, 2025, seven further homes had been conveyed by D.R. Horton to individual homeowners and two were in escrow but not yet closed to individual homeowners.

Master Developer. Rancho Tolenas Corporation, a California corporation ( previously defined in this Official Statement as the “ Master Developer”) is the master developer of the property within Improvement Area B. The Master Developer is a privately -owned California corporation and an affiliate of the Lewis Group of Companies (the “ Lewis Group”). The Lewis Group was established in 1955 and has built more than 57,000 homes, developed more than 25,000 acres of land and developed and sold more than 21,000 residential lots. Since its formation, the Lewis Group has also developed more than 19.5 million square feet of retail, office and industrial space and also owns and manages apartments and investment properties.

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The Lewis Group focuses on identifying and then acquiring residential land which it subsequently entitles, develops, and sells to merchant or custom homebuilders. Such activities include transactions in the communities of Chino, Diamond Bar, Eastvale, Fontana, Lake Elsinore, Rancho Cucamonga, Rialto, Riverside County, Upland, Brawley, Calexico, Imperial, Fairfield, Sacramento, Elk Grove, Dixon, Lincoln, Wheatland, El Dorado Hills, Folsom and Hercules, all in California, as well as Las Vegas, North Las Vegas, Reno, Sparks and Dayton in Nevada.

The Lewis Group has sold lots to Albert Seeno, The Allen Group, Beazer Homes, Brookfield Homes, California Pacific Homes, Centex Homes, Corky McMillin Cos., D.R. Horton, Greystone Homes, Meritage Homes, Richmond American Homes, Woodside Homes, and TRI Pointe Homes, among others.

Further information regarding the Lewis Group is available from its website at lewisgroupofcompanies.com. This internet address is included for reference only, and the information on the internet site is not a part of this Official Statement and is not incorporated by reference into this Official Statement. No representation is made in this Official Statement as to the accuracy or adequacy of the information contained on such internet site.

The Merchant Builders. The Master Developer purchased Units 1, 2, 3, and 4 within Improvement Area B in July 2003, and subsequently sold Units 1, 2, 3, and 4 to Discovery Homes, D.R. Horton, Richmond American and TRI Pointe, respectively, as merchant builders.

Discovery Homes. Villages at Fairfield, LLC ( referred to in this Official Statement as “Discovery Homes”) is a California limited liability company. Discovery Homes was responsible for the construction of the 87 homes in Unit 1, u nder the product name “Avery at The Villages.” All 87 homes in Unit 1 have been conveyed to individual homeowners.

D.R. Horton. D.R. Horton BAY, Inc., a Delaware corporation (referred to in this Official Statement as “ D.R. Horton ”) is a wholly -owned subsidiary of D.R. Horton, Inc., a Delaware corporation (“D.R. Horton, Inc.”). D.R. Horton, Inc. is a public company whose common stock is traded on the NYSE under the symbol “DHI.” Founded in 1978 and headquartered in Arlington, Texas, D.R. Horton, Inc. constructs and sells homes through its operating divisions in 125 markets in 36 states under the names of D.R. Horton, America’s Builder, Emerald Homes, Express Homes and Freedom Homes.

D.R. Horton was responsible for the construction of the 119 homes in Unit 2 under the product name “Iris at The Villages.” As of February 28, 2025, 116 of the homes in Unit 2 had been conveyed to individual homeowners and D.R. Horton owned two completed homes (both under contract) and one home under construction on the model home parking lot. D.R. Horton expects to close the sales of the remaining three homes to individual homeowners by April 2025. Homes under contract may not result in closed escrows as sales contracts are subject to cancellation.

Richmond American . Richmond American Homes of Maryland, Inc., a Maryland corporation (referred to in this Official Statement as “ Richmond American”), is a wholly-owned subsidiary of M.D.C. Holdings, Inc., a Delaware corporation (“MDC”). Richmond American Homes was responsible for the construction of the 93 homes in Unit 3, under the product name “Larkspur at The Villages.” All 93 homes in Unit 3 have been conveyed to individual homeowners

TRI Pointe. TRI Pointe Homes Holdings, Inc., a Delaware corporation (referred to in th is Official Statement as “ TRI Pointe”), is a wholly -owned subsidiary of Tri Pointe Homes, Inc., a Delaware Corporation (“Tri Pointe Homes”), a publicly traded company whose common stock is listed on the New York Stock Exchange under the ticker symbol “TPH.” TRI Pointe was

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responsible for the construction of the 133 homes in Unit 4, under the product name “Lantana at The Villages.” All 133 homes in Unit 4 have been conveyed to individual homeowners.

Status of Bond Financed Public Infrastructure

The net proceeds of the 2025A Bonds will be used to reimburse the Master Developer for previously constructed eligible Facilities in accordance with the Acquisition Agreement.

Entitlements

Entitlement Status. The large final map for Improvement Area B was approved on April 4, 2017 and recorded in the County of Solano on May 3, 2017. Small lot final subdivision maps for Units 1, 3 and 4 were record ed in the County of Solano in 2018. Small lot final subdivision maps for Unit 2 were recorded in the County of Solano on September 3, 2021 . All other discretionary entitlements for development in Improvement Area B are in place, and the Master Developer is not aware of any additional entitlements required to complete development within Improvement Area B.

Utilities. It is expected that utility services for the taxable property in Improvement Area B will be provided by the following:

 Water: City of Fairfield
 Sanitary Sewer: Fairfield-Suisun Sewer District
 Storm Water Drainage: City of Fairfield
 Electricity and Gas: Pacific Gas & Electric
 Telephone: AT&T
 Garbage: Republic Services

Environmental Matters

General. The City certified the final environmental impact report for the Villages at Fairfield (the “ EIR”) under the California Environmental Quality Act on September 20, 2005, and an addendum to the EIR on November 3, 2015.

Neither the Master Developer nor the Merchant Builders are required to under take any remediation in order to develop their respective property in Improvement Area B as described in this Official Statement.

Flood Hazard Map Information . The District is located in an area of minimal flooding according to the Federal Emergency Mana gement Association (“ FEMA”). In particular, Improvement Area B is located in an area designated by FEMA as being within Zone X, with a

0.02% chance of flooding in any given year. See “BOND OWNERS’ RISKS – Property Values – Natural Disasters.”

Seismic Conditions. Like other areas of Northern California, property in the District is subject to the risk of major earthquake damage. The City is located along the eastern edge of the seismically active Coast Ranges of California. Active faults near the City include the Green Valley and Cordelia faults. Most large earthquakes in the Bay Area have occurred along the major faults including the San Andreas, Hayward, Calaveras faults, which are located 20 to 45 miles west and south of the City. A significant earthquake along these or other faults is possible during the period the 2025A Bonds will be outstanding. See “BOND OWNERS’ RISKS – Property Values – Natural Disasters.”

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Wetlands. The Master Developer was required to perform certain wetland mitigation. All such mitigation required for development within Improvement Area B has been completed.

Special Tax Revenues and Projected Debt Service Coverage

The Rate and Method is structured to produce Special Tax revenues from the Maximum Special Tax that, when applied to the projected Debt Service on the 2019A Bonds and the 2025A Bonds, is anticipated to result in a Debt Service coverage ratio of at least 110% for the life of the 2019A Bonds and the 2025A Bonds.

It should be noted that the City may in the future issue Parity Bonds on a parity with the 2019A Bonds and the 2025A Bonds upon the satisfaction of the conditions contained in the Fiscal Agent Agreement, up to a total combined bond authorization of $ 25,000,000. As a result of the issuance of the 2019A Bonds and the 2025A Bonds, the remaining unissued amount of authorized bonded indebtedness of Improvement Area B has decreased to $ 2,135,000*. See “THE 2025A BONDS– Issuance of Future Parity Bonds.”

Assessed Values

General. The valuation of real property in the County is established by the County Assessor. Assessed valuation s are reported at 100% of the “full cash value” of the property, which is defined in Article XIIIA of the California Constitution as the appraised value as of March 1, 1975, plus adjustments not to exceed 2% per year to reflect inflation. An assessment of “full cash value” is required upon change of ownership or new construction, after which the assessed value increases at a rate no greater than 2% per year. Accordingly, the gross assessed valuation presented in this Official Statement may not necessarily be representative of the actual market value of certain property in Improvement Area B.

No Appraisal. The City has not commissioned an appraisal of the property in Improvement Area B. Accordingly, all property value information for the Taxable Proper ty contained in this Official Statement is based on the Fiscal Year 2024 -25 County Assessor’s values.

Assessed Valuation s. The table below shows the historical assessed value of the property in Improvement Area B differentiated by land and improvement values.

* Preliminary; subject to change.

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Table 2
Improvement Area B of the
City of Fairfield
CFD No. 2016-1 (Villages at Fairfield)
Historical Assessed Valuation

Fiscal
Year Land Value
Improvement
Value Total Value
Percentage
Change in
Assessed Value
2019-20 $37,611,978 $18,585,422 $56,197,400 -
2020-21 42,920,723 81,017,965 123,938,688 121%
2021-22 46,451,238 119,678,913 166,130,151 34
2022-23 49,995,639 133,517,334 183,512,973 10
2023-24 51,739,224 137,323,514 189,062,738 3
2024-25 83,821,916 160,386,111 244,208,027 29

Sources: Solano County Assessor's Office as compiled by Willdan Financial Services for Fiscal Years 2019-20 through 2023-24 and Goodwin Consulting Group, Inc. for Fiscal Year 2024-25.

The assessed value for Fiscal Year 2024 -25 reflects ownership and development status as of the January 1, 2024 lien date. As of the January 1, 2024 lien date, 361 parcels had improvement values and 71 had no improvement values. Of the 361 parcels with impr ovement values as of the January 1, 2024 lien date, the median total assessed value was $610,653. Homes sold since the January 1, 2024 lien date have ranged from sales prices of approximately $592,000 to approximately $753,000, with an average of approximately $679,000.

Value-to-Debt Ratios

The following tables 3 and 4 show the approximate value-to-debt ratio for the parcels in Improvement Area B of the District, based on the assessed values, the outstanding principal amount of the 2019A Bonds, and the proposed principal amount of the 2025A Bonds.

No assurance can be given that the amounts shown in these tables will conform to those ultimately realized in the event of a foreclosure action following delinquency in the payment of the Special Taxes.

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Table 3
Improvement Area B of the
City of Fairfield
CFD No. 2016-1 (Villages at Fairfield)
Projected Fiscal Year 2025-26 Special Tax Levy, Assessed Values, and Value-to-Lien Ratios (Development Status as of February 18, 2025)

Development Class and
Property Ownership (1)
Taxable
Parcels

Assessed
Value (2)
Assigned FY
2025-26
Special
Tax
Revenues
Projected FY
2025-26
Special Tax
Levy
Percent of
Projected FY
2025-26
Special Tax
Levy
Allocated
Bonds(3)*
Average
Value-to-
Lien
Ratios*

Developed Property
Individual Homeowners 422 $241,463,937 $1,374,715 $1,266,953 97.8% $21,949,940 11.0 D.R. Horton (4) 10 2,744,090 31,632 29,152 2.2 505,060 5.4 Total 432 $244,208,027 $1,406,347 $1,296,105 100.0% $22,455,000 10.9

* Preliminary; subject to change.
(1) Ownership information based on sales data provided by the Master Developer on January 22, 2025, and confirmed with the Solano County Assessor's tax roll. (2) Per the Solano County Assessor's tax roll, as of the January 1, 2024 lien date. (3) Represents the bonded debt of the district, including $19,455,000 of the outstanding 2019 Bonds and $3,000,000* of the proposed 2025 Bonds. Allocated based on the projected fiscal year 2025-26 special tax levy.
(4) As of February 28, 2025, D.R. Horton had sold seven of these homes to individual homeowners and had two homes in escrow but n ot closed to individual homeowners; the final home was under construction and is expected to be completed in mid-April 2025. The average sales price for the nine homes sold or under contract was approximately $_____.

Sources: City of Fairfield; Solano County Assessor's Office; Goodwin Consulting Group, Inc.

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Table 4
Improvement Area B of the
City of Fairfield
CFD No. 2016-1 (Villages at Fairfield)
Summary of Value-to-Lien Ratios

Value-to-Lien
Taxable
Parcels
Assigned
FY 2025-26
Special Tax
Revenues
Projected
FY 2025-26
Special Tax
Levy
Percent of
Projected
FY 2025-26
Special Tax
Levy
Allocated
Bonds*(1)
Assessed
Value (2)
Average
Value-to-
Debt Ratios*
Greater than 10:1 356 $1,162,018 $1,070,930 82.6% $18,553,834 $222,073,011 12.0 5:1 to 10:1 75 240,975 222,085 17.1 3,847,622 21,869,516 5.7 Less than 5:1 1 3,353 3,091 0.2 53,544 265,500 5.0
Total 432 $1,406,347 $1,296,105 100.0% $22,455,000 $244,208,027 10.9

* Preliminary; subject to change.
(1) Represents the bonded debt of the district, including $19,455,000 of the outstanding 2019 Bonds and $3,000,000* of the proposed 2025 Bonds. Allocated based on the projected fiscal year 2025-26 special tax levy. (2) Per the Solano County Assessor's tax roll, as of the January 1, 2024 lien date.

Source: City of Fairfield, Stifel, Nicolaus & Company, Inc.; Goodwin Consulting Group, Inc.

Direct and Overlapping Governmental Obligations

Contained within the boundaries of Improvement Area B are certain overlapping local agencies providing public services. Many of these local agencies have outstanding debt. The direct and overlapping debt affecting Improvement Area B as of March 1, 2025, is shown in the table below, a direct and overlapping debt report (the “Debt Report”) prepared by California Municipal Statistics, Inc. The Debt Report is included for gener al information purposes only.

Neither the City nor the Underwriter has reviewed the Debt Report for completeness or accuracy and neither makes any representation in connection therewith.

The Debt Report generally includes long-term obligations sold in the public credit markets by public agencies whose boundaries overlap the boundaries of Improvement Area B in whole or in part. These long -term obligations are not payable from Special Taxes derived from Improvement Area B (except as indicated) nor are they necessarily obligations secured by land within Improvement Area B. In many cases long-term obligations issued by a public agency are payable only from the general fund or other revenues of such public agency.

The contents of t he Debt Report are as follows: (1) the first column indicates the public agencies that have outstanding debt as of the date of the Debt Report and whose territory overlaps Improvement Area B; (2) the second column shows the percentage of the assessed valuation of the overlapping public agency identified in column 1 which is represented by property located within Improvement Area B; and (3) the third column is an apportionment of the dollar amount of each public agency's outstanding debt (which amount is not shown in the table) to property in Improvement Area B, as determined by multiplying the total outstanding debt of each agency by the percentage of the public agency's assessed valuation represented in column 2.

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Table 5
Improvement Area B of the
City of Fairfield
CFD No. 2016-1 (Villages at Fairfield)
Direct and Overlapping Governmental Obligations

2024-25 Local Secured Assessed Valuation: $243,966,433

DIRECT AND OVERLAPPING TAX AND ASSESSMENT DEBT: % Applicable Debt 3/1/25 Solano Community College District General Obligation Bonds 0.335% $ 1,177,785 Fairfield-Suisun Joint Unified School District General Obligation Bonds 1.069 3,028,874 City of Fairfield Zone of Benefit Obligations 1.233 64,377 City of Fairfield Community Facilities District No. 2016-1, I.A. B 100.000 19,455,000(1) TOTAL DIRECT AND OVERLAPPING TAX AND ASSESSMENT DEBT $23,726,036

OVERLAPPING GENERAL FUND DEBT:

Solano County General Fund Obligations 0.326% $202,487 Fairfield-Suisun Joint Unified School District Certificates of Participation 1.069 58,401 City of Fairfield Pension Obligation Bonds 1.233 292,130 TOTAL OVERLAPPING GENERAL FUND DEBT $553,018

COMBINED TOTAL DEBT $24,279,054(2)

Ratios to 2024-25 Local Secured Assessed Valuation:

Direct Debt ($19,455,000)........................................................................... 7.97% Total Direct and Overlapping Tax and Assessment Debt ............................ 9.73% Combined Total Debt ................................................................................... 9.95%

(1) Excludes the 2025A Bonds.
(2) Represents the City’s obligations to allocate property tax revenues levied within Improvement Area B to pay the Solano County Water Agency for project costs associated with the North Bay Aqueduct of the State Water Project.

Source: California Municipal Statistics, Inc.

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Illustrative Tax Bill

The following table sets forth the estimated total tax burden on a developed single-family detached unit in Improvement Area B, based on special tax rates for Fiscal Year 2024-25.

Table 6
Improvement Area B of the City of Fairfield
CFD No. 2016-1 (Villages at Fairfield)
Fiscal Year 2024-25 Illustrative Tax bill

Assumptions ≥ 2,700 SF 2,275 -
2,699 SF
< 2,275 SF
Average Assessed Value(1) $693,456 $644,292 $605,422 Homeowner's Exemption ($7,000) ($7,000) ($7,000)
Net Assessed Value $686,456 $637,292 $598,422

Ad Valorem Tax Rate(2) Rate
County General 1.0000000% $6,865 $6,373 $5,984
Fairfield City 0.0023000% 16 15 14
SC Water Agency St Water Proj. 0.0200000% 137 127 120 SCC 2012 GOB Series D 0.0008772% 6 6 5
SCC 2012 GOB Series E 0.0015834% 11 10 9
Solano Comm. Coll. Bonds 2021 0.0045357% 31 29 27
FF SS USD GOB 2016 Series 2020 0.0202224% 139 129 121 FF SS USD GOB 2016 S-2018 0.0169246% 116 108 101
SCC 2019 GO Refunding Bonds 0.0057447% 39 37 34
SCC 2015 GO Refunding Bonds 0.0126799% 87 81 76
FSUSD 2020 GOB Refunding 0.0112930% 78 72 68
FFSS USD 2022 GO Refndg. Bond 0.0192434% 132 123 115 SCC GOB 2012 Series A 0.0011434% 8 7 7
FFSSUSD GOB 2016 Series 2016 0.0111141% 76 71 67
SCC 2012 GOB Series C 0.0024934% 17 16 15
SCC 2012 GOB Series F 0.0023688% 16 15 14
Total Ad Valorem Taxes 1.1325240% $7,774 $7,217 $6,777

Direct Charges(3)
Woodlake Maintenance Dist. #14 $260 $260 $260
City of Fairfield - CFD #2012-2 1,070 1,070 1,070
F-S SD Drainage Maintenance 20 20 20
SF Bay Rest Auth-Measure Aa 12 12 12
CFD 2016-1 Improvement Area B 3,280 2,720 2,257
Total Direct Charges $4,643 $4,083 $3,620

Total Taxes and Direct Charges $12,417 $11,300 $10,397 Percentage of Assessed Value 1.79% 1.75% 1.72%

(1) Based on the average assessed value of homes sold to Individual Homeowners with improved value as of January 1, 2024. (2) Based on the fiscal year 2024-25 ad valorem tax rates for the tax rate area within Improvement Area B. Ad valorem tax rates are subject to change in future years.
(3) Based on the fiscal year 2024 -25 charges identified on the Solano County -issued property tax bills. Charges subject to change in future years.

Source: Solano County Tax Collector's Office; Solano County Assessor's Office; Goodwin Consulting Group, Inc.

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Special Tax Collection and Delinquencies Rates

Pursuant to the Ordinance, Special Taxes within Improvement Area B were first levied in Fiscal Year 2018-19. The following table is a summary of Special Tax levies, collections and delinquency for Fiscal Years 20 18-19 through 2024-25 based on amounts levied and outstanding delinquencies following April 10 th of each fiscal year , which corresponds to the due date of the second installment of property taxes.

Table 7
Improvement Area B of the City of Fairfield
CFD No. 2016-1 (Villages at Fairfield)
Special Tax Levies, Collections and Delinquency Rates

Following April 10th Each Fiscal Year As of February 20, 2025 Fiscal Year
Fiscal Year
Special Tax
Number of
Parcels
Levied
Delinquency As
of Date
Amount of
Special Tax
Delinquent
Number of
Parcels
Delinquent
Percentage
Special Tax
Delinquent
Amount of Special
Tax Delinquent
Number of
Parcels
Delinquent
Percentage
Special Tax
Delinquent
2018-19 $74,582 3 7/23/19 $0 0 0.0% $0 0 0.0%
2019-20 1,038,536 314 5/7/20 0 0 0.0 0 0 0.0
2020-21 1,053,142 314 5/9/21 20,928 9 2.0 0 0 0.0
2021-22 1,079,648 314 5/10/22 19,634 7 1.8 0 0 0.0
2022-23 1,091,964 432 5/2/23 20,508 11 1.9 3,811 1 0.4
2023-24 1,114,751 432 6/6/24 9,269 5 0.8 3,887 1 0.4
2024-25 (1) 1,127,785 427 N/A N/A N/A N/A 5,527 4 1.0

(1) For Fiscal Year 2024-25, the first installment is due December 10, 2024 and the second installment is due April 10, 2025. Delinquency rate is base d on the first installment only.

Sources: Solano County Tax Collector's Office; as compiled by Willdan Financial Services.

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Potential Consequences of Special Tax Delinquencies

General. Delinquencies in the payment of property taxes (including the Special Taxes) with respect to property in Improvement Area B could result in draws on the 2019 Reserve Fund established for the 2019A Bonds, the 2025A Bonds and any Related Parity Bonds, and perhaps, ultimately, a default in the payment on the 2025A Bonds. See “Covenant to Foreclose – Special Taxes Are Not Covered By Teeter Plan” and “BOND OWNERS’ RISKS.”

Special Tax Enforcement and Collection Procedures. The City could receive additional funds for the payment of Debt Service through foreclosure sales of delinquent property, but no assurance can be given as to the amount of foreclosure sale proceeds or when foreclosure sale proceeds would be received. The City has covenanted in the Fiscal Agent Agreement to take certain enforcement actions and commence and pursue foreclosure proceedings against delinquent parcels under the terms and conditions described herein. See “SECURITY FOR THE 2025A BONDS — Covenant to Foreclose” and “BOND OWNERS’ RISKS.”

Foreclosure actions would include, among other steps, formal City Council action to authorize commencement of foreclosure proceedings, mailing multiple d emand letters to the record owners of the delinquent parcels advising them of the consequences of failing to pay the applicable Special Taxes and contacting secured lenders to obtain payment. If these efforts were unsuccessful, they would be followed (as needed) by the filing of an action to foreclose in superior court against each parcel that remained delinquent.

Limitations on Increases in Special Tax Levy. If owners are delinquent in the payment of Special Taxes, the City may not increase Special Tax levies to make up for delinquencies for prior Fiscal Years above the Maximum Special Tax rates specified for each category of property within Improvement Area B of the District. See “SECURITY FOR THE 2025A BONDS – Rate and Method.” In addition, Section 53321(d) of the Act provides that the special tax levied against any parcel for which an occupancy permit for private residential use has been issued may not be increased as a consequence of delinquency or default by the owner of any other parcel within a community facilities district by more than 10% above the amount that would have been levied in such Fiscal Year had there never been any such delinquencies or defaults. In cases of significant delinquency, these factors may result in defaults in the payment of principal of and interest on the 2025A Bonds. See “BOND OWNERS’ RISKS.”

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BOND OWNERS' RISKS

The purchase of the 2025A Bonds described in this Official Statement involves a degree of risk that may not be appropriate for some investors. The following includes a discussion of some of the risks which should be considered before making an investment decision. This discussion does not purport to be comprehensive or definitive and does not purport to be a complete statement of all factors which may be considered as risks in evaluating the credit quality of the 2025A Bonds.

Risks of Real Estate Secured Investments Generally

The Bondowners will be subject to the risks generally incident to an investment secu red by real estate, including, without limitation, (i) adverse changes in local market conditions, such as changes in the market value of real property in Improvement Area B, the supply of or demand for competitive properties in such area, and the market v alue of property in the event of sale or foreclosure, (ii) changes in real estate tax rates and other operating expenses, government rules (including, without limitation, zoning laws and restrictions relating to threatened and endangered species), (iii) na tural disasters (including, without limitation, earthquakes, wildfires and floods), which may result in uninsured losses, or natural disasters elsewhere in the country or other parts of the world affecting supply of building materials that may cause delays in construction, and (iv) the impacts of a public health emergency on construction and sales activity, the national and regional economy and financial circumstances of property owners in Improvement Area B. The occurrence of one or more of the events dis cussed herein could adversely affect the ability or willingness of property owners in Improvement Area B to pay their Special Tax when due, and could induce or exacerbate the risks described herein. See “ – Value to Lien Ratios,” “ – Levy and Collection of the Facilities Special Tax,” “– Property Tax Delinquencies,” and “– Bankruptcy Delays” below.

Limited Obligation of the City to Pay Debt Service

The City has no obligation to pay principal of and interest on the 2025A Bonds if Special Tax collections are delinquent or insufficient, other than from amounts, if any, on deposit in the 2019 Reserve Fund or funds derived from the tax sale or foreclosure and sale of parcels for Special Tax delinquencies. The City is not obligated to advance funds to pay Debt Service on the 2025A Bonds.

Potential Early Redemption of Bonds from Special Tax Prepayments

Property owners within the District are permitted to prepay the Special Taxes at any time.

Any such payments will result in a mandatory redemption of Bonds from Special Tax prepayments on the next Interest Payment Date for which timely notice may be given under the Fiscal Agent Agreement following the receipt of any such Special Tax prepayment. Any resulting redemption of 2025A Bonds that were purchased at a price greater than par could reduce the otherwise expected yield on such 2025A Bonds. See “THE 2025A BONDS – Redemption – Redemption from Special Tax Prepayments.”

Levy and Collection of the Special Tax

General. The principal source of payment of principal of and interest on the 2025A Bonds is the proceeds of the annual levy and collection of the Special Tax against property within Improvement Area B.

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Fairfield City CouncilApril 1, 2025

Fairfield City Council
April 1, 2025