Agenda packet — Mammoth Lakes City Council, February 21, 2024 (part 1 of 5)

Town Council Agenda

Wednesday, February 21, 2024, 4:00 p.m.
437 Old Mammoth Road, Suite Z, Mammoth Lakes
Members of the Town Council:

Mayor Bill Sauser, Mayor Pro Tem Chris Bubser, Councilmember Sarah Rea, Councilmember Amanda Rice, Councilmember John Wentworth NOTE: In compliance with the Americans with Disabilities Act, if you need special assistance to participate in this meeting, please contact the Town Clerk at (760) 965-3602. Notification 48 hours prior to the meeting will enable the Town to make reasonable arrangements to ensure accessibility to this meeting. (28 CFR 13.102-35.104 ADA Title II)
NOTE: Materials related to an item on this agenda submitted after distribution of the agenda packet are available for public inspection in the Town Offices located at 437 Old Mammoth Road, Suite 230 during normal business hours. Such documents are also available on the Town of Mammoth Lakes website at www.townofmammothlakes.ca.gov subject to staff’s ability to post the documents before the meeting.

NOTE: You may attend the Town Council meetings in person or watch them on the Town of Mammoth Lakes' website at www.townofmammothlakes.ca.gov , on the local government cable channel 18, or via Zoom. Public comments can be submitted to the Town Clerk at [email protected]. before and during the meeting, or may be made in person or via Zoom.

NOTE: All comments will be limited to a speaking time of five minutes.

ZOOM INFORMATION
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1. CALL TO ORDER AND ROLL CALL

2. PLEDGE OF ALLEGIANCE

3. PUBLIC COMMENTS
The Public Comment portion of the agenda provides the public with an opportunity to address the Town Council on matters not otherwise listed on the agenda. Under California law the Town Council is prohibited from generally discussing or taking action on items not included in the agenda; however, the Town Council may briefly respond to comments or questions from members of the public. Therefore, the Town Council will listen to all public comment, but will not generally discuss the matter or take action on it. Requests for service from the Town may also be made at the Town offices during regular business hours.

Members of the public desiring to speak on a matter appearing on the agenda should ask the Mayor for the opportunity to be heard when the item comes up for Council consideration.

4. ADDITIONS TO THE AGENDA
Opportunity to add urgency items pursuant to Government Code Section 54954.2(b)2, if necessary.

5. INTRODUCTIONS

5.1 Introduce and swear in new Mammoth Lakes Police Department Sergeant Wes Hoskin.

6. REPORTS FROM COMMISSIONS AND/OR DEPARTMENTS (AS NEEDED)

6.1 Receive Mammoth Main Base Redevelopment Project (“Evolving Main”) Update (Mammoth Mountain Main Lodge Area).

6.2 Receive the monthly Parcel Affordable Housing Project Construction Update.

6.3 Update on Certified Properties Municipal Code updates to Section 3 and 5.

7. COUNCIL PRESENTATIONS

7.1 Recognition of retiring Town Manager Daniel C. Holler.

8. STAFF PRESENTATIONS

8.1 Review and provide comments on the proposed Amendment to the 2010 Snowcreek Development Agreement.

9. CONSENT AGENDA

9.1 Approve the minutes of the regular meeting of February 7, 2024.

9.2 Approve the minutes of the special meeting of February 15, 2024.

9.3 Approve the Solid Waste Parcel Fee Agreement with Mono County for Fiscal Years 2024-2025 through 2028-2029 to allow the levy and collection by Mono County of Solid Waste Parcel Fees in the Town of Mammoth Lakes, subject to review and approval by
Mono County.

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9.4 Approve the 2024 Youth Sports Funding allocations as recommended by the Parks and Recreation Commission.

9.5 Accept Check Register 2/7/24 in the amount of $457,030.52. Accept Check Register 2/14/24 in the amount of $1,417,017,08. Accept Check Register 2/15/24 in the amount of $100,900.00.

10. PUBLIC HEARINGS
Public Hearing Procedure.

The Mayor will open the public hearing and then: Statement and presentation by staff.

Statement and presentation by property owner or appellant. Questions from the Town Council. Call for testimony. Rebuttal to previous testimony by property owner or appellant.

Close the public hearing, terminating public testimony. The Town Council will deliberate the matter and arrive at a decision.

10.1 Hold a public hearing under the Tax and Equity Fiscal Responsibility Act (“TEFRA”) in connection with the proposed issuance of revenue bonds by the California Municipal Finance Authority (the “CMFA”) for The Sawyer Apartment Affordable Housing Project.

10.2 Hold a public hearing under the Tax and Equity Fiscal Responsibility Act (“TEFRA”) in connection with the proposed issuance of revenue bonds by the California Municipal Finance Authority (the “CMFA”) for The Parcel Phase 2.2 Apartment Affordable Housing
Project.

11. POLICY MATTERS

11.1 Proposed Funding Support for Mammoth Lakes Mosquito Abatement District.

11.2 Approval of Town of Mammoth Lakes and Mono County Whitmore Recreation Area Joint Operations and Maintenance Agreement.

11.3 Adoption of a Resolution approving the form and authorizing execution of certain lease financing documents in connection with the offering and sale of certificates of participation relating thereto to finance the cost of construction and equipping a new town facility and the cost of acquiring certain land and improvements and authorizing and directing certain actions with respect thereto.

12. COUNCILMEMBER REPORTS
Informational reports from Councilmember representatives on committees, commissions, and organizations; general reports on Councilmember activities

13. ADJOURNMENT
The Town Council will adjourn to a regular meeting to be held on Wednesday, March 6, 2024 at 4:00 p.m.

14. MAMMOTH LAKES MUNICIPAL SERVICE CORPORATION
A meeting of the Mammoth Lakes Municipal Service Corporation will commence after the regular Town Council meeting of February 21, 2024.

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Mammoth Lakes Town Council
Agenda Action Sheet
Title: Receive Mammoth Main Base Redevelopment Project (“Evolving Main”) Update (Mammoth Mountain Main Lodge Area)
Council Meeting Date: 2/21/2024
Prepared by: Jen Murillo, Contract Planner
Recommended Motion: This is an informational item only. No recommendation or action is needed.

Summary: The Mammoth Main Base Redevelopment Project is a major private development application being processed by the Town. Below is a high-level update on this application:
 Environmental Review (CEQA/NEPA) – Environmental analysis (i.e., preparation of the Draft Environmental Impact Report/Environment Impact Statement (EIR/EIS)) has not started and is pending additional project information.
 Outreach – Meetings with the project’s “Working Group” are underway to discuss key project topics and issues. The Working Group consists of Town staff, the applicant, and various stakeholders (e.g., Mammoth Lakes Fire Protection District, Mammoth Lakes Police Department, etc.). Future public meetings are anticipated to be topic focused as discussions with the Working Group proceed. A basic project information sheet has been prepared (see attached).
 State Route (SR) 203 Potential Relinquishment Analysis – Caltrans is preparing a Relinquishment Assessment Report (RAR) to study the relinquishment of SR 203. Town staff is identifying information that the Town will need to evaluate relinquishment. The Town and Caltrans will continue to coordinate as appropriate.  Target Schedule
Ongoing Working Group meetings
Spring/Mid-2024 Additional outreach meetings/events (TBD) Late 2024 Draft EIR/EIS available for review
Late 2025 Town Council decision on project
Attachments:
- Project Update Presentation (February 2024)
- DRAFT Project Information Sheet (February 2024)
Relevant project links:
 Town’s project webpage - www.townofmammothlakes.ca.gov/1155/MammothMain-Base-Redevelopment  USFS project webpage - www.fs.usda.gov/project/?project=62406  Applicant’s project webpage - www.evolvingmain.com/

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Mammoth Main Base Redevelopment
Project (Evolving Main)
Town Council Update
February 21, 2024 Page 5 of 563
2/21/24 Mammoth Main Base Redevelopment Project (Evolving Main) | 2 Project Context

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2/21/24 Mammoth Main Base Redevelopment Project (Evolving Main) | 3 Illustrative Timeline

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2/21/24 Mammoth Main Base Redevelopment Project (Evolving Main) | 4 Outreach
Workshops
Department Updates – Council & Commission
Working Group
Advisory Design Panel Meetings
Public Hearings
Project
information sheet
now available

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2/21/24 Mammoth Main Base Redevelopment Project (Evolving Main) | 5 What’s Happening Now? (1 of 2)
• State Route 203
o Applicant working through design relative to Caltrans standards o Caltrans working on Relinquishment Assessment Report (RAR) o Town identifying information needs for Town’s analysis • Housing
o Working Group meetings held 1/12 & 2/16 (included Eastern Sierra Community Housing) o Applicant to submit a proposed housing plan
• Emergency Access/Egress
o Town and MLFPD discussions ongoing
o 2nd Working Group meeting on this topic with MLFPD and MLPD to be scheduled

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2/21/24 Mammoth Main Base Redevelopment Project (Evolving Main) | 6 What’s Happening Now? (2 of 2)
• Public Access and Recreation
o Working Group meeting held 1/19 (included USFS and Mammoth Lakes Recreation) o Applicant correcting/revising trail network map
• Specific Plan
o More information on previous topics to be provided/developed o Applicant to prepare/submit draft Specific Plan
• CEQA/NEPA
o More information on previous topics to be provided/developed o USFS discussing alternatives for White Bark Pine (threatened under Endangered Species Act) • Mono County Board of Supervisors (BOS)
o Presentation to BOS on project expected on April 2nd

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2/21/24 Mammoth Main Base Redevelopment Project (Evolving Main) | 7 Thank You
Town’s project webpage - www.townofmammothlakes.ca.gov/1155/Mammoth-Main-Base-Redevelopment USFS project webpage - www.fs.usda.gov/project/?project=62406 [email sign up here] Applicant’s project webpage - www.evolvingmain.com/

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Mammoth Main Base Redevelopment Project
“Evolving Main” Information Sheet

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DRAFT

LAND EXCHANGE
In 2020, a land exchange transferred approximately 35 acres at the base of Mammoth Mountain Ski Area (MMSA) Main Lodge from federal (U.S. Forest Service) to private ownership. The 35 acres are comprised of two parcels (Parcel A and Parcel B). These two parcels are now owned by Mammoth Main Lodge Redevelopment LLC (MMLR).

MMLR is under the commercial real estate subsidiary of Alterra Mountain Company (Alterra). MMSA is under the resorts subsidiary of Alterra. The goal of this land exchange is for redevelopment of the 35 acres to enhance the economic and community needs within Mammoth Lakes and Mono County.

LAND JURISDICTION
The Town of Mammoth Lakes has
jurisdiction over the redevelopment of
Parcels A and B. However, redevelopment
will also include improvements on Mammoth
Mountain Ski Area, outside of Parcels A
and B, that will require U.S. Forest Service
approval. In addition, any changes to
State Route 203/Minaret Road will require
approval from the California Department
of Transportation (Caltrans). Due to the complexity, uniqueness, and scale of this potential private redevelopment project, many agencies are involved in the review and ultimate decisions on this project.

PARCEL A & B
Parcel A currently
contains Mammoth
Mountain Inn, the Yolder
Restaurant, lower
Panorama Gondola
building, lower terminal
of Discovery Chair (Chair
11), surface parking,
and other uses. Parcel
B contains wastewater
settling ponds and is
accessed by an unimproved service road. Parcel A is about 4 miles up State Route 203 (Minaret Road) from The Village at Mammoth.

Prepared by the Town of Mammoth Lakes

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RELEVANT PROJECT LINKS
Town project website: www.townofmammothlakes.ca.gov/1155/Mammoth-Main-Base-Redevelopment-Evolving USFS project website with sign-up for emails: www.fs.usda.gov/project/?project=62406 Applicant’s project website: www.evolvingmain.com

PROPOSED PARCEL A & B REDEVELOPMENT PROGRAM
Project updates are provided at regularly scheduled Mammoth Lakes Town Council and Planning and Economic Development Commission meetings. Visit the Town website below for meeting information.

The current draft proposed development program for Parcels A and B is shown in the illustrative concept plan below.

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ILLUSTRATIVE TIMELINE
Below is an estimated high-level timeline for review and decisions on this project. Please check the websites below for updates as project review proceeds.

This project will be a substantial private investment in the region. The potential tax revenue generation from this project is being estimated and will be provided to the public when available. • 250 hotel rooms
• 209 resort
residential units
• 95,000 square feet
of commercial
space
• Pedestrian plaza
• Wastewater
treatment facility
Prepared by the Town of Mammoth Lakes
DRAFT

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Mammoth Lakes Town Council
Agenda Action Sheet
Title: Receive the monthly Parcel Affordable Housing Project Construction Update Council Meeting Date: 2/21/2024
Prepared by: Nolan Bobroff, Community and Economic Development Director; Amy Callanan, Engineering Manager
Recommended Motion: This is an informational item only. No recommendations or action is needed.

Summary: Staff will provide the Town Council with updates on Phase 1 (The Sawyer) and Phase 2 (The Kingfisher) of the Parcel. Representatives from the developer (Pacific West Communities, Inc) and the property manager (Buckingham Property Management) will be available to answer questions from the Town Council.

See attached February 2024 Parcel Development Highlight sheet.

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The Parcel Monthly Construction Update
February 21, 2024
Prepared for: Town Council
Prepared by: Shellan Rodriguez, SMR Development; Nolan Bobroff, Community and Economic Development Director; Amy Callanan, Engineering Manager
This month’s highlights:
 Phase 1 – The Sawyer
o Construction
 Estimated Residential Certificate of Occupancy (c/o) date: early April 2024  The playground and safety perimeter fencing for the MCOE Daycare was installed in summer 2023; build-out of the interior daycare space is ongoing.  Construction update:
 SCE energizing of both buildings scheduled for the week of 2/14/2024; testing and climatizations to begin after building energizing.  Interior corridors are being finished.
 Trash chutes and parking striping to be completed.
 Fiber, data and phone will be completed by end of Feb. o Refinancing of The Sawyer to occur in March 2024 to utilize awarded tax credit equity and tax-exempt bonds in lieu of taxable bonds and accelerator funds (TEFRA Town Council public hearing scheduled for 2/21/2024).
o Property Management: Jennie Reed, Regional Director of Buckingham Property Management, will be available at the 2/21/2024 Town Council meeting to provide additional details on the lease-up.
 Waitlist- 720+ names.
 Outreach to waitlist began in late January 2024.
 Goal is to contact 200 people by the end of February.  On-site project manager positions being advertised.
 Facebook posts updated.
 Phase 2 – The Kingfisher
o Tax Credits Awarded in December 2023 ±$30 million in proceeds.  $2.33 million in federal
 ~$7 million in state
o Will start construction in June 2024 and are required to close on the financing in early June 2024.
o Tree removal completed in fall 2023.
 Phase 3 – Homeownership
o Undergoing site plan revisions based on Public Works comments. o Updating construction and financing estimates.
o Identifying public agencies with homeownership assistance programs. o Planning entitlement application anticipated to be submitted in spring 2024 o Tree removal anticipated in fall 2024.

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Mammoth Lakes Town Council
Agenda Action Sheet
Title: Update on Certified Properties municipal code updates to section 3 and 5 Council Meeting Date: 2/21/2024
Prepared by: Rob Patterson, Administrative Services / Finance Director Recommended Motion: No Action – Update Only
Summary:

The Town Finance team has been working on all Municipal Code updates required to implement the Certified Properties program. This is a comprehensive review of code section 3.12 and 5.40 which govern Transient Occupancy Tax collection and Transient Rentals respectively.

Installing Certified Properties in place of TOT certificate requires a rewrite of each section within each of these chapters. Staff is in the final review of the edits made to memorialize the elements approved by the Town Council at the February 7th meeting. In addition to the edits previously approved, staff had a number of policy questions that will inform all edits required to implement the program. The planned meeting on February 15th will provide the necessary information to complete this process. Staff will have a comprehensive list of adjustments ready for first reading at the March 6th Town Council meeting. If there are no significant changes after the first reading, staff will conduct the second reading at the March 20th Town Council meeting and the Code update will take effect on April 22, 2024.

Staff will recommend the lifting of the current moratorium to follow the same timeframe and be lifted on April 22, a little more than a month earlier than planned.

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Mammoth Lakes Town Council
Agenda Action Sheet
Title: Review and provide comments on the proposed Amendment to the 2010 Snowcreek Development Agreement
Council Meeting Date: 2/21/2024
Prepared by: Nolan Bobroff, Community and Economic Development Director Recommended Motion: Review, discuss, and provide comments on the proposed Amendment to the 2010 Snowcreek Development Agreement.

Summary: The 2010 Snowcreek Development Agreement (SDA) vests the entitlements granted in the Snowcreek Master Plan Update 2007 (SMPU) for the Snowcreek VIII development and the entitlements granted under the previous 1981 Snowcreek Master Plan for the Snowcreek VII (Creekhouse) development.

The term of the SDA is for 20 years that covers the period of July 23, 2010 – July 23, 2030. 1 For a variety of reasons, development of the sites governed by the SDA have not progressed at the rate envisioned at the time of adoption of the SDA, and the majority of the ‘greater community benefits’ identified in the SDA have not been achieved. The developer believes that this can be partially attributed to the prolonged 2008 economic downturn and that the market has not achieved the economic success envisioned in the SDA as compared to peer resorts. Since adoption of the SDA in July 2010, the majority of the SC VII (Creekhouse) development has been completed (115 of 118 units); however, no development has commenced on the SC VIII site.

Due to these unforeseen delays, the developer is requesting the following amendments to the SDA to allow for the continued vesting of the entitlements granted in the SDA.

Developer Proposed Amendments

1. An extension of the SDA for an additional 20 year term (extend to July 2050) [SDA Section 2.2].

2. Removal of the language that shortens the life of the SDA as a result of not commencing construction on the resort hotel and 18-hole golf course [SDA Section 2.2.1(c)(2)].

In exchange for the extended term, the Town has proposed the following additional community benefits be added to the SDA.

Town Proposed Amendments:

1. Continued operation of the existing 9-hole golf course for the life of the SDA.

2. The permanent protection of the ~61 acres occupied by the existing 9-hole golf course as open space that is available for recreational (e.g., golf, hiking trails, etc.) and ancillary uses (e.g., golf clubhouse, parking for the golf course, shade structure, restroom, picnic facilities, bridges, etc.).

The intent would be to prohibit the development of residential housing units on the open space area, while not prohibiting recreational uses and those facilities and amenities that are accessory to recreational uses. This would be similar to the covenant that is in place on the ~94 acre golf course expansion area.

3. Inclusion of the option for additional summer and winter recreational amenities (e.g., hiking trails, mountain bike trails and/or features, cross-country ski trails, snow shoeing, fat bike trails, etc.) on the ~94 acre expanded golf course area. These amenities would be considered interim and would not preclude the development of an 18-hole golf course. In the event that the 18-hole golf course did not utilize the entire ~94 acres, the remaining area would be available for permanent recreational amenities.

1 Pursuant to Section 2.2.1.(c)(2), the term of the SDA is reduced one day for each day, or portion thereof, that construction of the resort hotel and 18-hole golf course has not commenced beginning in July 2020, meaning that the term of the SDA could be reduced to 15 years and have an end date in July 2025.

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2 All other provisions of the existing SDA are proposed to remain unchanged, including the community benefits, vested rules, affordable housing mitigation framework, and milestones. However, in the event the SDA term ends, the guaranteed provision of the following items would also end, except for those items already completed or achieved. A summary of the items being proposed to remain unchanged are below.

Existing Community Benefits in the SDA: A list of the community benefits provided by the SDA that are in excess of what was legally required by the entitlements is below.

1. Up to $10 million Additional Financial Contribution (AFC).

2. Fiscal benefits that will accrue to the Town from the additional development, including an increase in TOT.

3. 8.9 acres of park area in excess of that required by the SMPU. (Partially Completed)

4. Preservation of Mammoth Creek open space corridor. (Completed)

5. Championship 18-hole golf course.

6. Golf practice facility.

7. Secondary access for Snowcreek V and Snowcreek VIII and emergency vehicle access to Sherwin Creek Road.

8. Allowed egress of backcountry winter recreation users. (Completed)

9. Programming of public spaces (great lawn, outfitters cabin, etc.).

10. Access through the project to connect to adjacent public lands. (Ongoing)

11. Land for propane storage tanks, if needed.

Vested Rules: A list of the vested rules included in the SDA is below.

1. Vesting of all Town rules and regulations in effect as of the effective date of the SDA.

2. Vesting of Building (DIFs and Permit Fees) and Planning application fees based on the fees in effect in 2010.

3. Vesting of the Snowcreek VII (Creekhouse) and Snowcreek VIII entitlements (SMPU). (Snowcreek VII has largely been completed)
Affordable Housing Mitigation Framework: A summary of the mitigation requirements is below.

1. Provision of 47 units of on-site deed-restricted housing that will target households earning between 150% - 200% AMI.

2. Payment of in-lieu fees in an amount not-to-exceed $2.59M.

3. Use of the existing 16.5 FTEE housing credits that were provided for the donation of the land where the Aspen Village apartments were built.

Milestones: A list of the identified milestones in the SDA is below.

1. Allowed egress of backcountry winter recreation users. (Completed and ongoing)

2. Permanent protection of the Mammoth Creek open space corridor within two years of the SDA effective date. (Completed)

3. Phasing of developments based on what the market will absorb. (Ongoing) DAs are intended to provide a degree of certainty in the land use regulatory process and be a mutually beneficial agreement between both parties. Additionally, DAs are required to provide a greater benefit to a community than development under the zoning regulations in place at the time of DA adoption would provide. If the DA were to expire, the Town would not receive the greater community benefits described above, or the additional community benefits being proposed. The developer would however still be able to develop the project envisioned in the SMPU, subject to the regulations and requirements in the SMPU and other applicable Town regulations (i.e., Municipal Code, Housing Mitigation Ordinance, Current Year Fee Schedule, etc.).

The purpose of this item is to discuss the proposed amendments with the Town Council and the public and to consider whether the community benefits included in the SDA, with the inclusion of the additional benefits described above, will continue to provide a greater benefit to the community over the extended term of the SDA than what would be achieved under the existing zoning regulations in place.

Additional details on the existing provisions of the SDA are included in the attached SDA Summary Sheet.

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1 ____________________________________________________________________________________ Snowcreek Development Agreement Summary
PURPOSE: The purpose of the 2010 Snowcreek Development Agreement (SDA) is as follows:
 increase the likelihood that the subject development projects are built as intended in the long-term;  ensure the provision of needed facilities, improvements or services; and  provide assurance to the developer regarding the rules, regulations, and policies applicable to future development.

SUMMARY OF THE SDA ELEMENTS
Vested Rules
A. Vesting of Town ordinances, resolutions, rules, regulations, requirements, and official policies, including the General Plan, Municipal Code (including the Zoning Code), Snowcreek Master Plan (1981), and Snowcreek Master Plan Update 2007 (Snowcreek VIII), in effect as of the effective date of the SDA for the subject properties.

B. Vesting of development impact fees, housing in-lieu fees, and the Town processing fees (Building and Planning fees) and review times, in effect as of the effective date of the SDA for the subject properties. a. The building fees include a cost of living adjustment (COLA) tied to the CA Construction Cost Index (CCCI) to adjust for inflation over time.
b. A detailed comparison of current fees and the 2010 adjusted fees will be provided at the meeting.

C. Vesting of the Snowcreek VII and Snowcreek VIII Entitlements a. Snowcreek VII (The majority of the Snowcreek VII development has been completed as of February 2024)
i. 118-unit condominium development
ii. A bike path/multi-use trail with a public easement along Old Mammoth Road. iii. Public access easement for fishing and hiking along Mammoth Creek. iv. The historic Wildasinn Cabin and Pelton Wheel (Knight Wheel) would remain on site. v. Open space and landscaped areas for the residents of Snowcreek VII. b. Snowcreek VIII (Snowcreek Master Plan Update 2007) (Development of Snowcreek VIII has not commenced as of February 2024)
i. Up to 990 units (790 residential units and 200 resort hotel rooms/private residence club units [The Resort Hotel Rooms/Suites (250 rooms) and Private Residence Club units (150 units) are considered half-units for the purposes of determining the total number of units (250 + 150 = 400/2 = 200)]

1. Of the 790 residential units, 743 will be market-rate units and 47 will be on-site deed-restricted affordable units
ii. A resort hotel including conference and meeting space, public spa/wellness center, restaurants, bar(s)/lounge(s), and associated retail.
iii. A championship 18-hole golf course (expanding the existing nine-hole golf course) including a new clubhouse and practice facility. Winter use of the golf course would include cross-country skiing, snowshoeing, and snow play. iv. A “Great Lawn.”
v. Outfitters cabin.
vi. Egress from the Sherwins.

Community & Economic Development
P.O. Box 1609, Mammoth Lakes, CA, 93546
(760) 965-3630
www.townofmammothlakes.ca.gov

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2 vii. A natural resources interpretive area on the north side of Old Mammoth Road. viii. Neighborhood commercial/retail facility and a public mini-park. ix. Residents’ club for Snowcreek VIII residents.

Community Benefits
The project itself provide significant community amenities; additional community benefits provided through the SDA include:

A. Additional Financial Contribution (“AFC”) of up to $10 million to use for purposes beneficial to the community and intended to be applied to various projects located within a surrounding geographic nexus. a. AFC shall be divided by the number of entitled residential units in the Project and Resort Hotel Rooms/Suites to determine a pro rata amount per unit.
b. The pro rata contribution per residential unit will be approximately $10,000 per unit, assuming all entitled units are constructed, and will be paid at the time of building permit issuance for each unit.
c. For Resort Hotel Rooms/Suites, the pro rata contribution will be approximately $5,000 per half unit, assuming all entitled units are constructed, and will be paid prior to the issuance of a certificate of occupancy for each unit.
d. At the Developer’s sole election, Developer may allocate the AFC amount solely or mainly to the residential units to facilitate the economic viability of the Resort Hotel. e. The AFC shall be reduced in three ways:
i. In the event that not all of the entitled units are constructed, the actual pro rata allocation of the AFC for each unit not constructed shall be deducted from the AFC. ii. In the event that not all the entitled Resort Hotel Rooms/Suites are constructed, the actual pro rata allocation of the AFC for each Resort Hotel Room/Suite not constructed shall be deducted from the AFC.
iii. As set forth in the Affordable Housing Mitigation Financial Framework in Section 2.2.3 of the DA.
f. The AFC shall not be subject to a COLA to adjust for inflation over time.

B. Fiscal benefits that will accrue to the Town and community through the implementation of the Project as intended that would not occur without the DA, including transient occupancy taxes.

C. Approximately 8.9 acres of park and open space area in excess of that required in conjunction with the buildout of Snowcreek VIII.1
D. Preservation of the Mammoth Creek open space corridor through a conservation easement.

E. A championship 18-hole golf course designed by a top course architect.

F. A golf practice facility designed by a top course architect.

G. Secondary access for both Snowcreek V and VIII and the emergency vehicle access road, which is in addition to the MLFPD requirements.

H. Allowing egress of backcountry skiers, snowboarders, and snowshoers from the Sherwin Range earlier then required.

I. Programming of public spaces, including but not limited to the Great Lawn and Outfitters’ Cabin, to increase visitation to the Project and town.

1 The 8.9 acres of park and open space area is calculated as follows: 15.6 acres Mammoth Creek open space corridor + 0.12 acres mini-park + 1.5 acres Great Lawn + 3.76 acres internal open space corridor = 20.98 acres. The General Plan EIR and the Parks and Recreation Master Plan recommend a standard of 5 acres of parkland per 1,000 residents, which would be

12.08 acres for Snowcreek VIII. Therefore, 20.98 acres (provided) - 12.08 acres (required) = 8.9 acres provided in excess of that required.

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3 J. Establishment of public access across certain points of the project to allow public egress to surrounding public lands prior to project construction and after completion and which would also provide access to an enhanced network of publicly accessible multi-use paths that is connected to the Town’s trail system.

K. If needed by the Town, the Developer will provide an area for propane tank storage.

Affordable Housing Mitigation Financial Framework
The Affordable Housing Mitigation Financial Framework (AHMFF) contained in the SDA specifies the financial parameters that establish the limit for the developer’s affordable housing mitigation obligations. The AFC that would be received as a community benefit through the SDA would be decreased, if costs to mitigate affordable housing increase due to a change in those variables.

A. Mitigation shall only be provided for units actually built. Affordable housing mitigation shall not be required for any non-residential or commercial land use on the site including ancillary commercial uses within the Resort Hotel.

B. The affordable housing requirement for Snowcreek VIII shall be ten percent (10%) of the Market Rate Units (i.e., 943 units x 10% = 94.3 units). Developer proposes 50% of the ten percent requirement will be built on site, assuming full buildout (47 deed restricted units) and the other 50% shall be mitigated for through a combination of payment of in-lieu fees and FTEE credits already owned by Developer.

C. Features of the On-Site Mitigation Units
a. Dispersed throughout the project in the High Density Residential Product buildings. b. One, two, three and four bedroom affordable units may be built. The average number of bedrooms per on-site affordable unit shall be equal to two bedrooms. c. Deed restricted units must be owner-occupied and cannot be leased in whole or in part at any time.

D. Features of the In-Lieu Fee Program
a. Developer owns 16.5 FTEE credits (remaining credits from the donation of the land where the Aspen Village affordable apartments were constructed)
b. The residential unit in lieu fee shall be $85,000/unit for 30.5 units or $2,592,500 assuming full buildout. This amount shall be allocated to all market rate units so assuming full build-out the fee will be $3,489.23 per residential unit. The in-lieu fee shall be paid on a per unit basis prior to the issuance of a building permit for each residential unit.

E. Variables that Require Adjustment to Additional Financial Contribution (AFC). As stated earlier in Section

2.2.2 above, the AFC may be reduced in the event that the aggregate cost of the on-site deed restricted units or off-site in-lieu fee increases. The AFC shall be decreased if costs increase due to a change in one or more of the following variables:
a. AMI level. For the purpose of calculating an impact to the AFC, the assumption shall be that 50% of the deed restricted units shall be sold to families whose income is 175% of AMI for Mono County and 50% of the deed restricted units shall be sold to families whose income is 200% of AMI for Mono County. AMI shall be calculated at the time of issuance of Certificate of Occupancy; b. Percentage of household income that can be used for a mortgage payment which for the purpose of the calculations in this Section 2.2.3 shall be assumed to be 35%; c. Affordable housing requirement increases in excess of ten percent (10%) of market rate units; d. Percentage of affordable housing mitigation required on site increases in excess of fifty percent (50%) of the ten percent (10%) of market rate units;
e. In lieu fee;
f. Value of the 16.5 FTEE credits Snowcreek Investment Company currently owns; g. Type of on-site unit required (low, medium or high density); h. Size of the on-site units (number of bedrooms).

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4 In no event shall the aggregate adjustment in value due to changes in one or more of the eight variables listed in 2.2.3.5 exceed $10 Million Dollars.

Schedule of Development / Milestones
Due to the economic conditions in place in 2010 and the significant impacts caused by the recession, a determinate phasing schedule of development was not practical. Rather, basic performance milestones were provided, some relate to vesting. Those milestones are all subject to the unavoidable delays or events as described in the DA (Section 11.15):

A. [Completed] Developer has already allowed egress of backcountry skiers, snowboarders, and snowshoers from the Sherwin Range earlier then required and shall continue to allow that egress during construction so long as the Developer, at its sole election, determines the egress to be safe to the public at that time.

B. [Completed] No later than two years after the DA becomes effective, Developer shall have recorded a conservation easement, reasonably approved by the Town Manager, protecting the Mammoth Creek open space corridor.

C. [Ongoing] The Projects will be developed in phases and subphases based on what the market will absorb at any given point in time. It is the intention for each phase or subphase to provide all of the facilities, programs (including affordable housing), features, amenities, access and easements, and payment of all fees related to that phase or subphase as set forth in the DA. The actual phasing of development and the associated timing for completion of the facilities, programs (including affordable housing), features, amenities, access and easements would be discussed in connection with the application for each use permit or subsequent approval.

D. [Proposed to be deleted from the SDA] If the development of the Resort Hotel and the 18-hole championship golf course has not commenced within ten years after the effective date of the DA, then the remaining ten-year term of the DA shall be reduced by one day for each day, or portion thereof, that ten year milestone has not been met.

Related Documents
Snowcreek DA: https://www.townofmammothlakes.ca.gov/DocumentCenter/View/5109 Snowcreek Master Plan Update: https://www.townofmammothlakes.ca.gov/DocumentCenter/View/562

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Snowcreek Development
Agreement (DA) WorkshopDA 09‐001(A‐1)

TOWN OF MAMMOTH LAKES

TOWN COUNCIL
FEBRUARY 21, 2024

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Workshop Outline
Staff to present overview of the existing Snowcreek Development Agreement and proposed amendments
Opportunity for the Applicant to Address the Town Council Town Council and Public Input
Summary of Proposed CommentsNext Steps

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Overview of Development Agreements
What is a Development Agreement (DA)?
 Government Code §65864 and Town Municipal Code Chapter 17.108 Negotiated contract between project proponent and public agency  Voluntary agreement of both parties Required to be accompanied by a development plan (e.g., 2007 Snowcreek Master Plan Update [SMPU])
 Intended to:

1. Provide mutual benefits to both parties2. Provide a degree of certainty in the land use regulatory process

3. Provide greater benefits to the community than development under the Zoning Code Amendment to Existing DA vs New DA
 Process for an amendment is the same as for a new DA

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History of Snowcreek
◦ Original MP adopted in 1974◦ Amended in 1981◦ 1982 Snowcreek DA (1982 – 2002) ◦ Snowcreek VII – Approved in 2006
(to be completed in 2024)
◦ 2007 Snowcreek Master Plan Update
(Snowcreek VIII) – Approved in 2009
◦ 2010 Snowcreek DA (2010 – 2030)

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Project Vesting
Snowcreek VII (Creekhouse)
 Tentative Map Approval
 118 units (115 completed)
 Bike path easement
 Public access along Mammoth Creek
Snowcreek VIII
 2007 Master Plan Update, GPA to amend UGB,
Tract Map 09‐002, UPA 88‐19
 Up to 990 units (790 Residential + 400 Hotel Rooms/Private Residence Club Units [Considered ½ units])
 Resort hotel 18‐hole golf course
 Open Space, Access to Recreation, Great Lawn

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Proposed Amendments
 Chadmar
 Extend term for 20 years (to 2050) (SDA Section 2.2)
 Removal of language where they lose a day for each day construction of the golf course and hotel have not started (SDA Section 2.2.1(c)(2)
 TOML
 Continued operation of the existing 9‐hole golf course for the life of the DA  Permanent open space protection of the ~61 acres of the existing golf course  Option for additional summer and winter recreational amenities on golf course expansion area

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Remain the Same – Community Benefits
 Up to $10M Additional Financial Contribution
 Fiscal Benefits to the Town (Increase TOT, property tax, sales tax, etc.)  8.9 acres of Parkland in excess of that required by the SMPU (Partially Completed)  Preserve Mammoth Creek open space corridor (Completed) Championship 18‐hole golf course Golf practice facility  Secondary access for SC V and SC VIII and emergency vehicle access to Sherwin Creek Rd  Allowed egress for backcountry winter recreation users (Completed)  Programming of public spaces
 Access through the project to public lands (Ongoing)
 Land for propane tank storage (if needed)

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Remain the Same – Housing Mitigation
 Snowcreek DA Affordable Housing Mitigation Framework
 47 units of on‐site housing (AMIs range from 150% ‐ 200%)  Use of 16.5 FTEE housing mitigation credits Payment of In‐Lieu Fees ($2.59M assuming full build‐out; $3,489.23 per market‐rate residential unit)  Estimated Value (assuming full build‐out): $9.6M ‐ $19M (Assumes in‐lieu fees, credits, and $150K ‐ $350K subsidy per unit)  Current TOML Housing Ordinance
 Menu of options to mitigate housing impact (in‐lieu fees, on‐site, off‐site, etc)  All options are “equal” $7,957/Residential Unit; $5,305/Hotel Room Key; $2.92/sf of Non‐Residential Uses (subject to change)  Estimated Value (assuming full build‐out): $8.6M
(Assumes 790 residential units, 250 hotel room keys, 150 private residence club keys, and 75,000 sf non‐residential)

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Remain the Same – Vested Rules
 Town Regulations in effect in 2010
 Snowcreek VII and VIII approvals
 Building Fees
 Vesting of FY 09/10 Building Fee Schedule
 2010 Fees: Equal (Fee of $73,900 for a tri‐plex)
 DIFs: $16,888
 2015 Fees: Current Fees are ~$16K higher ($37,115 vs. $52,992)  DIFs: $5,749
 2020 Fees: Current Fees are ~$13K higher ($42,000 vs. $55,000)  DIFs: $6,358
 Delta has shrunk ~$3K over 5‐year period
 SC fees increase based on the annual change in the CCCI index  DIFs increase based on the same CCCI index

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Remain the Same – Milestones
Allow egress of backcountry winter recreation users. Completed  Permanent protection of the Mammoth Creek open space corridor.

Completed
 Phasing of developments based on what the market will absorb. Ongoing

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What happens if the SDA expires?
 Town loses additional community benefits
Development would be subject to current Building, DIFs, and Housing FeesDeveloper could still build the project outlined in the SMPU  Master Plans do not require the operation or development of projects  Master Plans provide the regulatory framework for the uses permitted (i.e., Zoning)  Future entitlements would be subject to the timelines in the Zoning Code  2‐years for tentative map approvals with the option to request up to a 6‐year extension  SMPU does not require the operation of the current golf course

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Questions?

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Town Council of Mammoth Lakes
Minutes of Regular Meeting
February 7, 2024, 4:00 p.m.
437 Old Mammoth Road, Suite Z, Mammoth Lakes
Members Present: Mayor Pro Tem Chris Bubser, Councilmember Sarah Rea, Councilmember Amanda Rice, Councilmember John Wentworth Members Absent: Mayor Bill Sauser
_____________________________________________________________________

1. CALL TO ORDER AND ROLL CALL

CONSIDERATION OF REQUEST FOR REMOTE PARTICIPATION BY MAYOR SAUSER PURSUANT TO GOVERNMENT CODE SECTION 54953(f)(2)(A)(ii).

The Mayor called the meeting to order at 4:03 p.m. in the Council Chamber, 437 Old Mammoth Road, Suite Z, Mammoth Lakes.

Town Manager Daniel C. Holler noted that Mayor Sauser would not need to participate remotely.

2. PLEDGE OF ALLEGIANCE
Cynthia Fleming led the flag salute.

3. PUBLIC COMMENTS
Bobby Tanner had questions for the Forest Service regarding the Reds Meadow Road closure.

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February 7, 2024

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4. ADDITIONS TO THE AGENDA
There were no additions to the agenda.

5. COUNCIL PRESENTATIONS

5.1 Introduction of new Community and Economic Development Director Nolan Bobroff and recognition of his ten year anniversary with the Town.

Town Manager Daniel C. Holler introduced Mr. Bobroff and thanked him for his years of service.

6. REPORTS FROM COMMISSIONS AND/OR DEPARTMENTS (AS NEEDED) Mammoth Lakes Police Department Sergeant Jason Heilman announced that the Town was awarded a grant from the California Office of Traffic Safety to support e-bike and pedestrian safety. There was discussion among members of Council and staff.

Fred Wong, Mammoth District Ranger, made announcements regarding Reds Meadow Road, the Town Snow Pit, Sherwin Tanks, snow grooming, and Christmas tree tags on the Inyo National Forest. There was discussion among members of Council and Mr. Wong.

6.1 February 2024 Public Works Engineering CIP Update.

7. PUBLIC PRESENTATIONS

7.1 2023 Mammoth Disposal Annual Report.

Assistant to the Town Manager Pam Kobylarz outlined the information in the staff report and introduced Kendra Knight and Michelle Erwin from Mammoth Disposal. There was discussion among members of Council and Mammoth Disposal staff.

8. CONSENT AGENDA
Moved by Councilmember Amanda Rice
Seconded by Councilmember Sarah Rea
Approve the Consent Agenda.

For (4): Mayor Pro Tem Chris Bubser, Councilmember Sarah Rea, Councilmember Amanda Rice, and Councilmember John Wentworth Absent (1): Mayor Bill Sauser

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February 7, 2024

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Carried (4 to 0)

8.1 Approve the minutes of the regular meeting of January 17, 2024.

8.2 Approve the minutes of the special meeting of January 31, 2024.

8.3 Authorize the Contract for the Airport Pavement Maintenance Management Plan Update to Brandley Engineering Inc.

8.4 Approve the Resolution adopting the Town of Mammoth Lakes Paid Sick Leave Policy.

8.5 Approve the Resolution adopting the Town of Mammoth Lakes Snow Patrol Policy.

8.6 Accept Check Register 1/18/24 in the amount of $643,826.79. Accept Check Register 1/24/24 in the amount of $573,932.57. Accept Check Register 1/31/24 in the amount of $145,053.30.

9. POLICY MATTERS

9.1 Approval of Employment Agreement with Rob Patterson for the position of Town Manager.

Town Attorney Andrew Morris outlined the information in the staff report.

There was discussion among members of Council and staff.

Moved by Councilmember John Wentworth
Seconded by Councilmember Amanda Rice
Approve Employment Agreement with Rob Patterson for the position of Town Manager effective March 1, 2024
For (4): Mayor Pro Tem Chris Bubser, Councilmember Sarah Rea, Councilmember Amanda Rice, and Councilmember John Wentworth Absent (1): Mayor Bill Sauser
Carried (4 to 0)

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February 7, 2024

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9.2 Consider Certified Properties Proposal from STR Advisory Committee.

Administrative Services/Finance Director Rob Patterson outlined the information in the staff report. There was discussion among members of Council and staff.

PUBLIC COMMENT:

John Morris, Chair of the STR Advisory Committee, spoke in support of the proposed program.

Dave C. asked about the timing to lift the moratorium. Town Attorney Andrew Morris responded.

There was discussion among members of the Council.

Moved by Councilmember John Wentworth
Seconded by Councilmember Amanda Rice
Advance the recommendations of the STR Advisory Committee to establish a Certified Properties program to address Safety, Penalties, and Fees as outlined and direct staff to make Municipal Code edits to support these administrative changes and bring them back to the Council as soon as practical.

For (4): Mayor Pro Tem Chris Bubser, Councilmember Sarah Rea, Councilmember Amanda Rice, and Councilmember John Wentworth Absent (1): Mayor Bill Sauser
Carried (4 to 0)

9.3 Receive information and provide direction on STR Advisory Committee Recommendations.

The Mayor Pro Tem called a recess at 5:56 p.m. and the Council reconvened at 6:02 p.m.

Town Manager Daniel C. Holler outlined the information in the staff report.

There was discussion among members of Council and staff regarding the Ballot Tax Measures to fund housing programs.

PUBLIC COMMENT:

John Morris spoke in support of a 2% TOT increase as a general tax.

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February 7, 2024

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Teri Stehlik said that she agreed with Mr. Morris but had concerns about a general tax.

Alisa Mokler recommended a special tax.

David Eichman said that he supported a TOT increase.

Ales Tomaier, Mammoth Lakes Fire Protection District Fire Chief, noted that the District was bringing a ballot measure to the November ballot.

Rose Perez Jensen said that the Council should disregard the Committee's proposals and commission a report to study the issues.

Jennifer Kreitz said that the Town already had excess revenue over budget to fund housing so she would not vote for more TOT. She said that the Town should be pushing people into hotels instead of our housing stock. She spoke in support of increasing the fee for short term rentals.

Jan Henry said that there was an increase to property taxes for schools on the March ballot that was supposed to help with staff housing for the School District. She said that targeting STR owners was not the right thing to do.

There was discussion among members of Council and staff.

CONSENSUS:

Direct staff to look at an additional funding mechanism to fund housing programs.

There was discussion among members of Council and staff regarding Rental Subsidy Programs.

PUBLIC COMMENT:

Ms. Mokler spoke in support of the Placemates program.

CONSENSUS:

Direct staff to have Placemates give a presentation to the Town Council based on a scope of work the Town can afford and then Council can take action after the presentation.

There was discussion among members of Council and staff regarding a Housing Down Payment Purchase Program.

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CONSENSUS:

The Town Council was supportive of a Down Payment Purchase Program.

There was discussion among members of Council and staff regarding continuing to review possible zoning changes to the RMF 2 zoning designation.

PUBLIC COMMENT:

Christina outlined her concerns about the proposed map.

Ms. Stehlik said that the Town was not built with condos as residential real estate. She asked the Council to remember that tourism drove the community and that we needed TOT more than any other community since we did not receive much property tax.

Ms. Henry said that she agreed with Christina's comments and spoke against the proposed zoning changes.

Ms. Jensen spoke against the proposed zoning changes.

Ms. Kreitz said that the Town should expand the RMF 1 Zone since it was the zone for locals.

Kim spoke against the proposed zoning changes but advised that if changes needed to be made then to look at each condo complex individually.

There was discussion among members of Council.

CONSENSUS:

Direct staff to have the Planning and Economic Development Commission review this proposal.

9.4 Approve the MOU between Blue Forest Finance Inc., World Resources Institute and Eastern Sierra Climate and Community Resilience Project – Wildfire Resilience Action Team (WRAFT), subject to final legal partner agency review.

Town Manager Daniel C. Holler outlined the information in the staff report.

Moved by Councilmember John Wentworth
Seconded by Councilmember Amanda Rice

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February 7, 2024

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Approve the MOU between Blue Forest Finance Inc., World Resources Institute and Eastern Sierra Climate and Community Resilience Project – Wildfire Resilience Action Financial Team (WRAFT), subject to final legal partner agency review.

For (4): Mayor Pro Tem Chris Bubser, Councilmember Sarah Rea, Councilmember Amanda Rice, and Councilmember John Wentworth Absent (1): Mayor Bill Sauser
Carried (4 to 0)

9.5 Review and provide comments on the Town Civic Center design.

This item was taken out of order.

Community and Economic Development Director Nolan Bobroff outlined the information in the staff report and introduced Brandon Gullotti and Brian Nichols from HMC Architects. HMC staff gave a presentation outlining the proposed project. There was discussion among members of Council and staff.

PUBLIC COMMENT:

Dave C. asked about the cost of the project. Town Manager Daniel C.

Holler responded.

Teri Stehlik said that she was concerned about the flat roof design. Public Works Director Haislip Hayes responded.

9.6 Council Update and Direction on Proposed Legislation and Related Items.

Town Manager Daniel C. Holler outlined the information in the staff report.

There was discussion among members of Council and staff.

10. COUNCILMEMBER REPORTS
Councilmember Rice said that the Mammoth Lakes Housing (MLH) Board meeting was canceled on Monday due to the snowstorm.

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February 7, 2024

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11. ADJOURNMENT
The Council adjourned the meeting at 8:06 p.m.

Jamie Gray, Town Clerk

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Town Council of Mammoth Lakes
Minutes of Special Meeting
February 15, 2024, 4:30 p.m.
437 Old Mammoth Road, Suite Z, Mammoth Lakes
Members Present: Mayor Bill Sauser, Mayor Pro Tem Chris Bubser, Councilmember Sarah Rea, Councilmember Amanda Rice, Councilmember John Wentworth
_____________________________________________________________________

1. CALL TO ORDER AND ROLL CALL
The Mayor called the meeting to order at 4:32 p.m. in the Council Chamber, 437 Old Mammoth Road, Suite Z, Mammoth Lakes.

Mayor Pro Tem Bubser announced that Mayor Sauser requested that he be allowed to join the meeting remotely due to a family medical emergency under Government Code Section 54953(f)(2)(A)(ii).

ACTION:

It was moved by Councilmember Amanda Rice, seconded by Councilmember Sarah Rea, and carried by a 5-0 vote to allow Mayor Sauser to participate in the meeting remotely.

2. PLEDGE OF ALLEGIANCE
Teri Stehlik led the flag salute.

3. PUBLIC COMMENTS
There were no public comments given at this time.

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February 15, 2024

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4. POLICY MATTERS

4.1 Council Discussion and Direction Regarding Recommendations from the BAE Urban Economics Short-Term Rental Study.

Administrative Services/Finance Director Rob Patterson introduced Aaron Nousaine, BAE Urban Economics. Mr. Nousaine gave a presentation outlining the report. There was discussion among members of Council, Mr.

Nousaine, and staff.

There was discussion among members of Council and staff regarding the STR Study Recommendations.
1) Update the Definition of an STR
2) Maintain Records to Allow Ongoing Analysis
3) Update Code Language on Vested Interests
PUBLIC COMMENT:

Teri Stehlik asked some clarifying questions.

Ted Carleton asked how many deed restrictions were lost and converted to short term rentals. Mr. Patterson responded.

Rob Nott said he did not understand the purpose of the moratorium.

CONSENSUS:

The Town Council agreed with staff that adding language to address vested interests to the Town's Municipal Code would be beneficial. 4) Require STR Platforms to Submit Data
5) Update TOT Property Search Tool
6) Prohibit Short-Term Renting of Properties Recently Subject to Eviction CONSENSUS:

The Town Council directed staff to work on a Municipal Code update regarding prohibiting short term renting of properties recently subject to eviction.
7) Establish a Waiting Period for New Home Purchases

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February 15, 2024

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PUBLIC COMMENT:

Rob Nott asked what the purpose of the wait time was. Mr. Nousaine responded.

Ms. Stehlik spoke against a waiting period.

CONSENSUS:

The Town Council agreed to not implement caps, waiting periods, or to create a mechanism to reduce allowed permits when needed now but to re-address the issues in November after the results from the election regarding the ballot measure to fund housing programs.
8) Update Fractional/Timeshare Code
9) Increase Enforcement Penalties
PUBLIC COMMENT:

Jan Henry noted a recent article that she had read stating that waiting periods caused homes to sit empty.
10) Register Rentals of 90 Days or Less
11) Establish a Cap or Caps on the Number of Permitted STRs PUBLIC COMMENT:

Ms. Stehlik spoke in opposition to caps.

Diane Stilwell asked for recourse if the Council implemented a cap, and it did not work.

Veronica Calkins spoke in favor of caps and a waiting period.

Jennifer Lanners said that caps would affect the investment for the Town's buyers.

CONSENSUS:

The Town Council agreed to not implement caps, waiting periods, or to create a mechanism to reduce allowed permits when needed now but to re-address the issues in November after the results from the election regarding the ballot measure to fund housing programs.
12) Create a Mechanism to Reduce Allowed Permits When Needed

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The Mayor Pro Tem called a recess at 6:35 p.m. and the Council reconvened at 6:40 p.m.
13) Consider Fewer Restrictions on Hosted STRs
14) Consider a Cap on Nights Rented in Non-Hosted STRs
PUBLIC COMMENT:

Mike T. asked about the number of nights. Mr. Patterson responded.

CONSENSUS:

The Town Council agreed that staff should not pursue a cap on nights rented in non-hosted STRs.
15) Consider Further Geographic Targeting of STR Regulations 16) Consider STR Density Limits
17) Update Analysis of Workforce Housing Need
CONSENSUS:

The Town Council agreed to an updated analysis of workforce housing need and directed staff to schedule a workshop to discuss specific information important to our community to be included in the study. 18) Strongly Oppose Legislation Similar to SB 584
19) Encourage Development of Other Accommodation Types
PUBLIC COMMENT:

Sarah Nutall encouraged the Council to review developer impact fees (DIF) and engage the private sector.
20) Lobby for Tenants Rights Reform
21) Expand and Diversify the Housing Supply
Ms. Nutall asked for an update regarding the Town Council receiving the Placemates presentation. Town Manager Daniel C. Holler responded. 22) Establish Additional Dedicated Local Funding Sources for Housing Programs

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PUBLIC COMMENT:

Jan Henry thanked the Town Manager for noting that the TOT increase should be considered up to 2% and thanked Mayor Sauser for participating remotely.

CONSENSUS:

The Town Council agreed that staff should develop a 2% increase in TOT as a general tax.
23) Aggressively Expand Inventory of Deed Restricted Housing 24) Pursue Economic Development Initiative
PUBLIC COMMENT:

Dan Sherby said that Mammoth was a tourist destination and since STRs and tourism benefited the Town, they should be encouraged.

Gary T. said that few people affected by the taxes had the ability to vote here, and that the people deciding on this issue were not directly affected by it.

5. CLOSED SESSION

5.1 Pursuant to Government Code Section 54956.8, the Town Council will hold a conference with its representatives in regard to property negotiations pertaining to:

Property: 100 College Parkway/APN 035-010-049
Agency Negotiators: Daniel C. Holler and Rob Patterson
Negotiating Parties: Town of Mammoth Lakes and Mammoth Lakes Foundation representative Betsy Truax, Luan Mendel, and Gary Myers
Under Negotiation: Price and terms of payment.

At 7:24 p.m. the Mayor Pro Tem announced that the Council would be entering into closed session for the purposes as stated in the agenda.

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February 15, 2024

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6. ANNOUNCEMENT OF ACTION TAKEN AFTER CLOSED SESSION
The Council reconvened from closed session at 8:00 p.m. and announced that there was no reportable action taken.

7. ADJOURNMENT
The Council adjourned the meeting at 8:00 p.m.

Jamie Gray, Town Clerk

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Mammoth Lakes Town Council
Agenda Action Sheet
Title: Approve the Solid Waste Parcel Fee Agreement with Mono County for Fiscal Years 2024-2025 through 2028-2029 to allow the levy and collection by Mono County of Solid Waste Parcel Fees in the Town of Mammoth Lakes, subject to review and approval by Mono County.

Council Meeting Date: 2/21/2024
Prepared by: Pam Kobylarz, Assistant to the Town Manager Recommended Motion: Approve the Solid Waste Parcel Fee Agreement with Mono County for Fiscal Years 2024-2025 through 2028-2029 to allow the levy and collection by Mono County of Solid Waste Parcel Fees in the Town of Mammoth Lakes, subject to review and approval by Mono County.

Summary: The collection of Mono County Solid Waste Parcel Fees in the Town of Mammoth Lakes has been approved by the Town since 1987. The fees are restricted in use to solid waste services and programs and are levied County-wide. For FY16-17 through FY20-21, a portion of the Fee was remitted back to the Town to support solid waste programs within the Town of Mammoth Lakes, most notably enhanced recycling efforts and meeting State diversion mandates. The sharing of the Fee was part of the flow agreement, which committed the Town to a minimum amount of solid waste to flow to the Benton Crossing Landfill. The flow agreement expired December 31, 2021 and Benton Crossing Landfill closed on December 31, 2022.

For FY22-23, the County did not include any sharing of the Fee under the Parcel Fee collection agreement and the Fees were primarily directed to closure and post-closure costs for the Benton Crossing Landfill. A portion of the Fees collected within Town will be necessary to assist with the ongoing postclosure costs estimated at $125,000 to $150,000 per year for at least 30 years. The Town portion of the Parcel Fee generates approximately $425,000 in revenue each year. With the closure of Benton Crossing Landfill, Mono County has continued certain programs at the Pumice Valley Landfill previously provided at Benton Crossing (construction and demolition disposal and some recycling services).

Over the past two years, the Town has reviewed its level of use for the Pumice Valley Landfill, its commitment to support ongoing post-closure costs for Benton Crossing Landfill, the need to fund and implement increasing State mandates placed on the Town related to solid waste and recycling, and desire to continue and expand solid waste and recycling services to our residents to determine appropriate sharing of the Parcel Fee moving forward. The Town is utilizing Pumice Valley Landfill for some larger items and green waste and enjoys other limited benefits from the Landfill. For FY23-24, the Town will receive a 50/50 split of the Fee with Mono County, which will allow us to continue our obligations to support post-closure costs for Benton Crossing Landfill and provide some support for Pumice Valley Landfill operations while ensuring funding is available to support our own solid waste programs and meet State mandates.

For the past few years, previous agreements were for one year at a time. Staff recommends the adoption of a five-year agreement to ensure a steady stream of income to fund solid waste initiatives within the Town of Mammoth Lakes for the coming years. This agreement reflects the 60% remittance of the Fees back to the Town for the duration of the agreement. Final approval of this agreement is pending review and approval by Mono County.

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SOLID WASTE FEE AGREEMENT

WITH THE TOWN OF MAMMOTH LAKES
FOR THE PERIOD OF JULY 1, 2024, THROUGH
JUNE 30, 2029

THIS AGREEMENT FOR COLLECTION OF SOLID WASTE FEES WITHIN THE TOWN OF MAMMOTH LAKES BY THE COUNTY OF MONO (“Agreement”) is made and entered into by and between the County of Mono (“County”) and the Town of Mammoth Lakes (“Town”):

RECITALS
WHEREAS, both the County and Town desire to provide solid waste services for their respective residents and businesses; and
WHEREAS, the County is authorized to provide solid waste disposal services pursuant to California Government Code Section 25830; and
WHEREAS, the Town is authorized to contract for solid waste disposal services pursuant to Public Resources Code, Section 49300; and
WHEREAS, the transfer station operated by the Town of Mammoth Lakes’ franchisee, Mammoth Disposal, is sized to accommodate waste from the County and is available for unincorporated Mono County residents to drop off and dispose of solid waste items; and WHEREAS, Benton Crossing Landfill closed on December 31, 2022 and the County has planned for and will carry out such actions which are necessary to continue to manage the closure in accordance with applicable law and regulation; and
WHEREAS, the County will continue to maintain a Class III construction and demolition waste disposal site at Pumice Valley Landfill which is available for use by residents and businesses of the Town; and,
WHEREAS, the County has adopted and imposed a fee schedule and program for solid waste disposal services provided to the residents and businesses of Mono County; and, WHEREAS, the Town Council has previously agreed/consented to the imposition of such fees in the Town of Mammoth Lakes and is willing to continue to do so for the period set forth in this

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agreement, based on the parties’ mutual understanding that the County will by resolution or ordinance simply re-establish and extend the existing fees for the period of July 1, 2025, through June 30, 2029.

Extension and re-establishment of the fees during the term of this agreement may include reductions to certain fees but will not impose new or increased fees that would be subject to Proposition 218.

CONTRACT PROVISIONS
NOW THEREFORE, BE IT RESOLVED, based upon the foregoing recitals, the parties to this Agreement hereto agree to the following:

1. The County agrees to continue to provide a class III construction and demolition waste disposal site at Pumice Valley Landfill (the “disposal site”) for the use by residents and businesses of the Town and by those persons or entities franchised by the Town to provide disposal services to Town residents and businesses pursuant to Public Resources Code, Section 49300.

2. The County agrees that the disposal site shall meet all Federal, State, and local requirements, rules, and regulations, and that the County shall comply with the requirements of the California Government Code Section 25830.

3. The County agrees to continue to manage the closure of the Benton Crossing Landfill. This includes, but is not limited to, development of approved closure and post-closure plans, conducting all required environmental analysis and review, implementing and maintaining a longterm monitoring program at Benton Crossing Landfill and any other activity required by law or regulation to properly close the Landfill and provide for its long-term monitoring.

4. The Town consents to the County’s re-establishment and extension, by resolution or ordinance, upon its residents and businesses a fee consistent with the schedule of fees adopted by the County in previous years, which may include a reduction of certain fees, pursuant to California Government Code, Section 25830 and in accordance with Public Resources Code, Section 49300.

5. The County agrees to assume primary responsibility for the collection of fees from Town residents and businesses through annual fees to be charged to identified lands within the incorporated limits of the Town, consistent with previous years.

6. The County shall place fee revenue within a designated ‘Special Revenue Account’ and shall disburse funds for purposes of Landfill Post-closure Maintenance expenses, Known and

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Foreseeable Release Scenarios, and other environmental mandates associated with landfill activities.

8. The Town agrees to use its best efforts to cooperate with the County regarding the collection of the above-referenced fees from its residents and businesses.

9. Both the Town and the County agree that the County shall be responsible for the post-closure of its Benton Crossing Landfill and the provision of the disposal site for construction of demolition waste throughout the term of this Agreement, including, but not limited to environmental monitoring costs, closure and post-closure funding, setting fees, resident appeals of fees, and all site operations.

10. The County and Town agree that financing waste collection, processing, and disposal services to meet state mandates related to recycling and diversion of materials from landfill, provide for household hazardous waste collection, electronics, white goods and other bulky items and related services provided to Town and County residents by the Town of Mammoth Lakes assists the County in meeting solid waste services requirements. To support these services provided by the Town, the County agrees to remit sixty percent (60%) of the fees collected in the Town of Mammoth Lakes to the Town. The remittance of the fees will be made based on the actual amounts collected by the County for each Fiscal Year 2024-2025 through Fiscal Year 2028-2029 and the fees shall be remitted to the Town within sixty (60) days of the close of the fiscal year.

11. Except as otherwise provided below, the County agrees to release, defend, hold harmless, and indemnify the Town, its officers, agents, and employees from and against all suits and cause of action, claims, laws, demands, expenses (including reasonable attorney fees), damages, or liability of any nature whatsoever arising by reason of, or incident to, the adoption and implementation of the solid waste disposal program as defined and outlined in this Agreement, including, but not limited to, any and all claims with respect to Proposition 13 and Proposition

62. Notwithstanding the foregoing, the County shall have no obligation to release, defend, hold harmless, and indemnify the Town, its officers, agents, and employees from and against any suits and cause of action, claims, laws, demands, expenses (including reasonable attorneys fees) damages or liability of any nature whatsoever arising by reason of, or incident to, any noncompliance of the solid waste program and its fees with Proposition 218, which was enacted by the voters in November of 1996.

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12. Both parties agree and understand that the County intends to annually re-establish and extend the fee schedule prior to July 1 of each year, without any increases, and the Town agrees to the reestablishment and extension of the fees within the Town limits for the term of this agreement , consistent with the requirements of Government Code Section 25830.

13. Both parties agree that fees may be established, billed, and collected on a monthly or annual basis, and may be billed and collected by the County Tax Collector as part of the regular County property tax billing system.

14. Both parties agree that this Agreement shall become effective upon execution by both the Town and the County.

15. The term of this Agreement shall be from July 1, 2024, through June 30, 2029.

16. The County agrees to provide the Town with any and all documents, reports, or other materials relative to the calculation of fees and the administration of the program contemplated herein as the Town may reasonably request.

17. The County and its officers, agents, and employees are independent contractors for the purposes of this Agreement. As such they shall have the rights and duties of independent contractors in providing services under this Agreement.

18. In the event of a dispute over the meaning of this Agreement or its performance, the aggrieved party shall notify County Counsel and the Town Attorney who shall thereupon make reasonable efforts to resolve the dispute. In the event that County Counsel and the Town Attorney do not resolve the dispute within 30 days after the notice specified, the parties shall each appoint two members of their governing bodies who shall attempt to resolve the dispute. Neither party shall file a legal action to enforce its Agreement prior to 60 days from the date the specified notice is mailed.

EXECUTION
This Agreement shall be deemed executed as of the date that it is approved by both the Mono County Board of Supervisors and the Mammoth Lakes Town Council.

COUNTY OF MONO: APPROVED AS TO FORM:

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John Peters, Board Chair County Counsel
TOWN OF MAMMOTH LAKES: APPROVED AS TO FORM:

Bill Sauser, Mayor Andrew Morris, Town Attorney

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Mammoth Lakes Town Council
Agenda Action Sheet
Title: Approve the 2024 Youth Sports Funding allocations as recommended by the Parks and Recreation Commission.

Council Meeting Date: 2/21/2024
Prepared by: Stuart Brown, Parks and Recreation Director Katrina Kelly, Recreation Manager
Recommended Motion: Approve the 2024 Youth Sports Funding allocations as listed under Column ‘A’ in Table 1.

Summary: The Town of Mammoth Lakes annually awards funds to supplement organized, nonprofit, and self-sustaining youth sports programs that may be in need of additional funding to provide enhanced programing or to foster greater participation from low-income residents.

The sum of $45,000 is identified in the FY2023/24 Parks and Recreation budget for allocation to the 2024 Youth Sports Funding Program. This sum includes $10,000 of funds from Mono County in support of county-wide youth sports programs.

On February 6, 2024, the Parks and Recreation Commission approved by unanimous motion the 2024 Youth Sports Funding allocations as presented by the Parks and Recreation Department.

Staff is recommending the Town Council approve the 2024 Youth Sports Funding allocations as listed under Column ‘A’ in Table 1 in the staff report.

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PARKS AND RECREATION COMMISSION

STAFF REPORT
Subject: 2024 Youth Sports Funding Recommendations
Date: February 6, 2024
Written by: Katrina Kelly, Recreation Manager
Stuart Brown, Parks and Recreation Director
RECOMMENDATION:

Staff is requesting the Commission approve the 2024 Youth Sports Funding recommendations as listed under Column ‘A’ in Table 1.

BACKGROUND
The Town of Mammoth Lakes annually awards funds to supplement organized, non-profit, and selfsustaining youth sports programs that may be in need of additional funding to provide enhanced programing or to foster greater participation from low-income residents.

ANALYSIS/DISCUSSION
The application period for the 2024 award opened on Monday, January 8 and closed on Friday, January 26, 2024.

A total of nine Youth Sports Funding applications were filed and received by the Parks and Recreation Department. Staff has reviewed each application and confirmed their eligibility for funding; however, staff would like to make the Commission aware that the applications from Mammoth Lakes Youth Hockey, Mono County Little League and Mammoth Club Volleyball were submitted after the closing deadline.

In previous years, MUSD Husky Club has applied for youth sports funding to support summer programming. The FY2023/24 Town budget allocates $6,500 to MUSD Husky Club, and as such, the organization will no longer be eligible for Youth Sports Funding.

A summary of 2024 funding applications can be viewed in Table 1 and in detail in Attachment A.

Complete funding applications are posted for public review on the dedicated Youth Sports Funding page:
https://www.townofmammothlakes.ca.gov/1282/2024-YSF-Applications Tony Colasardo Scholarship Fund
The Tony Colasardo Scholarship Fund provides full and partial scholarships for recreation programs provided, and supported, by the Mammoth Lakes Parks and Recreation Department. Scholarships are awarded on an annual, calendar-year basis, and provide either a 50%, 75%, or 90% discount. During 2023,

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the Tony Colasardo Scholarship Fund was extended to youth sports participants to help with registration fees. Staff plan to continue working with each Youth Sports Organization during their registration periods to raise awareness of the scholarship program. The purpose is to further promote youth participation and inclusivity throughout Mono County.
2024 Funding Applications
The 2024 Youth Sports Funding organization request for funds and the Staff recommended allocations are highlighted below in Table 1. Historical funding requests and allocations can also be viewed in Attachment A.

Funding Methodology
Based on the fluctuating available funds year over year, the different operating environments that each youth sporting organization experiences, the disparate number of participants that each organization serves and the different types of non-profits and their missions, staff have are proposing the new funding methodology developed last year be adopted for the 2024 awards. Each organization is categorized and placed in a Tier. Based on the average cost per participant of the varying sports and the associated expenses (i.e. swimming/hockey has a higher facility cost versus soccer or baseball based on Town facility use agreements), staff assigned a set revenue amount per participant.

The proposed Tiers and revenue amount per participant are as follows:

Tier Definition Revenue/Participant
One Youth Sports Organizations that use Town facilities and pays <$1/year
$30
Two Youth Sports Organizations that have facility fees OR staff costs $37 Three Youth Sports Organizations that have facility fees AND staff costs $55 Four A non-profit organization that provides valuable community youth programming
$1800 award
Table 1:
$45,000 Funding Level
Organization
2024
Recommendations 2024 Request 2023 Award 2023
Participants
Tier One - Youth Sports Organizations that use Town facilities and pay <$1/year AYSO - Mammoth Lakes Region 316 $ 13,680.00 $ 15,000.00 $ 11,290.00 456 Mammoth Track Club $ 1,320.00 $ 2,000.00 $ 1,231.00 36
Mono County Little League $ 7,680.00 $ 10,000.00 $ 7,167.00 180 Mammoth Lakes Futbol Club $ 1,500.00 $ 5,000.00 $ - 16
Tier Two - Youth Sports Organizations that have facility fees OR staff costs Eastern Sierra Nordic Ski Association $ 4,810.00 $ 6,000.00 $ 4,622.00 130 Mammoth Lakes Youth Hockey $ 4,555.00 $ 5,000.00 $ 3,930.00 124 Mammoth Club Volleyball $ 3,000.00 $ 3,500.00 $ 2,760.00 82 Tier Three - Youth Sports Organizations that have facility fees AND staff costs Mammoth Lakes Swim Team $ 6,655.00 $ 10,000.00 $ 5,500.00 121 Tier Four - A non-profit organization that provides valuable community youth programming Disabled Sports Eastern Sierra $ 1,800.00 $ 5,000.00 $ 1,500.00 24 MUSD Husky Club $ - $ - $ 7,000.00 0
TOTAL $ 45,000.00 $ 61,500.00 $ 45,000.00 1,169
2024 Youth Sports Funding Recommendations

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Attachment A: 2024 Youth Sports Funding Recommendations 2024 Youth Sports Funding Recommendations
Organization
2024
Recommendations 2024 Request 2023 Award 2023 Request 2022 Award 2023
Participants
2022
Participants
2024
Request
per
Participant
2024
Recomm.
per
Participant
% Total
Participants
% Total
Growth
Participants
AYSO - Mammoth Lakes Region 316 13,680.00 $ 15,000.00 $ 11,290.00 $ 15,000.00 $ 13,000.00 $ 456 439 32.89 $ 30.00 $ 39.01% 3.87%Disabled Sports Eastern Sierra 1,800.00 $ 5,000.00 $ 1,500.00 $ 1,800.00 $ 1,500.00 $ 24 19 208.33 $ 75.00 $ 2.05% 26.32% Eastern Sierra Nordic Ski Association 4,810.00 $ 6,000.00 $ 4,622.00 $ 6,000.00 $ 5,000.00 $ 130 134 46.15 $ 37.00 $ 11.12% -2.99%Mammoth Club Volleyball 3,000.00 $ 3,500.00 $ 2,760.00 $ 5,000.00 $ 2,500.00 $ 82 80 42.68 $ 36.59 $ 7.01% 2.50% Mammoth Lakes Futbol Club 1,500.00 $ 5,000.00 $ - $ - $ - $ 16 - 312.50 $ 93.75 $ 1.37% 0.00%Mammoth Lakes Swim Team 6,655.00 $ 10,000.00 $ 5,500.00 $ 6,000.00 $ 6,000.00 $ 121 100 82.64 $ 55.00 $ 10.35% 21.00% Mammoth Lakes Youth Hockey 4,555.00 $ 5,000.00 $ 3,930.00 $ 6,500.00 $ 4,450.00 $ 124 114 40.32 $ 36.73 $ 10.61% 8.77%Mammoth Track Club 1,320.00 $ 2,000.00 $ 1,231.00 $ 2,000.00 $ 2,000.00 $ 36 44 55.56 $ 36.67 $ 3.08% -18.18% Mono County Little League 7,680.00 $ 10,000.00 $ 7,167.00 $ 8,000.00 $ 7,000.00 $ 180 256 55.56 $ 42.67 $ 15.40% -29.69%MUSD Husky Club - $ - $ 7,000.00 $ 8,050.00 $ 8,050.00 $ - 97 TOTAL 45,000.00 $ 61,500.00 $ 45,000.00 $ 58,350.00 $ 49,500.00 $ 1,169 1,283 100.00% 2024 Youth Sports Funding Recommendations

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Mammoth Lakes Town Council
Agenda Action Sheet
Title: Hold a public hearing under the Tax and Equity Fiscal Responsibility Act (“TEFRA”) in connection with the proposed issuance of revenue bonds by the California Municipal Finance Authority (the “CMFA”) for The Sawyer Apartment Affordable Housing Project.

Council Meeting Date: 2/21/2024
Prepared by: Nolan Bobroff, Community and Economic Development Director Recommended Motion: Staff recommends that the Town Council: (1) Conduct the public hearing under the requirements of TEFRA and the Internal Revenue Code of 1986, as amended (the “Code”); and (2) adopt the resolution approving the issuance of the Bonds by the CMFA for the benefit of Mammoth Lakes Pacific Associates, a California Limited Partnership (the “Borrower”), a partnership of which Pacific West Communities, Inc. (the “Developer”) or a related person to the Developer is the general partner, to provide for the financing of The Sawyer Apartment Affordable Housing Project, such adoption is solely for the purposes of satisfying the requirements of TEFRA, the Code, and California Government Code §6500 (and following).

Summary: Please see the attached staff report.

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1 TOWN COUNCIL STAFF REPORT
Title: Conduit financing1for The Sawyer Apartments Affordable Housing Project
Meeting Date: February 21, 2024
Prepared by: Nolan Bobroff, Community and Economic Development Director RECOMMENDATION:

Staff recommends that the Town Council:
1) Conduct the public hearing under the requirements of TEFRA and the Internal Revenue Code of 1986, as amended (the “Code”).
2) Adopt the resolution approving the issuance of the Bonds by the CMFA for the benefit of Mammoth Lakes Pacific Associates, a California Limited Partnership (the “Borrower”) a partnership of which Pacific West Communities, Inc. (the “Developer”) or a related person to the Developer is the general partner, to provide for the financing of The Sawyer Apartments Affordable Housing Project, such adoption is solely for the purposes of satisfying the requirements of TEFRA, the Code, and the California Government Code Section 6500 (and following).

BACKGROUND/ANALYSIS:

The California Municipal Finance Authority (CMFA) was created on January 1, 2004 pursuant to a joint exercise of powers agreement to promote economic, cultural and community development, through the financing of economic development and charitable activities throughout California. To date, over 350 municipalities have become members of CMFA. The CMFA was formed to assist local governments, non-profit organizations and businesses with the issuance of taxable and tax-exempt bonds aimed at improving the standard of living in California. The CMFA’s representatives and its Board of Directors have considerable experience in bond financings.

Mammoth Lakes Pacific Associates (the “Borrower”) requested that the CMFA serve as the municipal issuer of the Bonds in an aggregate principal amount not to exceed $45,000,000 of tax-exempt revenue bonds. The proceeds of the Bonds will be used to finance or refinance the acquisition, construction, improvement and equipping of a multifamily rental housing project located at 50 and 62 Inyo Street (APN: 035-290-002-

1 A conduit issuer is an organization, usually a government agency, that issues municipal securities to raise capital for revenue-generating projects where the funds generated are used by a third party (known as the "conduit borrower") to invest in some project or activity that has a public benefit. The conduit financing is typically backed by either the conduit borrower's credit or funds pledged toward the project by outside investors. If a project fails and the security goes into default, it falls to the conduit borrower's financial obligation, not the conduit issuer.

Source: Investopedia https://www.investopedia.com/terms/c/conduit-issuer.asp

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2 000), Mammoth Lakes, California, known as The Sawyer Apartments Affordable Housing Project (the “Project”).

In order for all or a portion of the Bonds to qualify as tax-exempt bonds, the Town of Mammoth Lakes (the “Town”) must conduct a public hearing (the “TEFRA Hearing”) providing for the members of the community an opportunity to speak in favor of or against the use of tax-exempt bonds for the financing of the Project. Prior to such TEFRA Hearing, reasonable notice must be provided to the members of the community.

The Town published a notice of this hearing on the Towns website (https://www.townofmammothlakes.ca.gov/882/The-Parcel) on February 7, 2024 and in The Sheet newspaper on February 10, 2024. Following the close of the TEFRA Hearing, an “applicable elected representative” (in this case the Town Council) of the governmental unit hosting the Project must provide its approval of the issuance of the Bonds for the financing of the Project.

The Bonds to be issued by the CMFA for the Project will be the sole responsibility of the Borrower, and the Town will have no financial, legal, moral obligation, liability or responsibility for the Project or the repayment of the Bonds for the financing of the Project. All financing documents with respect to the issuance of the Bonds will contain clear disclaimers that the Bonds are not obligations of the Town or the State of California, but are to be paid for solely from funds provided by the Borrower.

There are no costs associated with membership in the CMFA and the Town will in no way become exposed to any financial liability by reason of its membership in the CMFA.

In addition, participation by the Town in the CMFA will not impact the Town’s appropriations limits and will not constitute any type of indebtedness by the Town.

Outside of holding the TEFRA hearing and adopting the required resolution, no other participation or activity of the Town or the Town Council with respect to the issuance of the Bonds will be required.

FINANCIAL CONSIDERATIONS:

The Board of Directors of the California Foundation for Stronger Communities, a California non-profit public benefit corporation (the “Foundation”), acts as the Board of Directors for the CMFA. Through its conduit issuance activities, the CMFA shares a portion of the issuance fees it receives with its member communities and donates a portion of these issuance fees to the Foundation for the support of local charities. With respect to the Town of Mammoth Lakes, it is expected that that a portion of the issuance fee attributable to the Town will be granted by the CMFA to the general fund of the Town. Such grant may be used for any lawful purpose of the Town.

LEGAL CONSIDERATIONS:

None. The Town Attorney has reviewed the request and the attached documents and is supportive of moving forward with this process.

ATTACHMENTS
Attachment 1: Town Council Resolution 24-__ (JPA)

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RESOLUTION NO. 2024-____

RESOLUTION OF THE TOWN COUNCIL OF THE TOWN OF

MAMMOTH LAKES, STATE OF CALIFORNIA, APPROVING THE

ISSUANCE OF THE CALIFORNIA MUNICIPAL FINANCE

AUTHORITY EXEMPT FACILITY BONDS FOR A QUALIFIED

RESIDENTIAL RENTAL PROJECT IN AN AGGREGATE PRINCIPAL
AMOUNT NOT TO EXCEED $45,000,000 FOR THE PURPOSE OF

FINANCING OR REFINANCING THE ACQUISITION,

CONSTRUCTION, IMPROVEMENT, AND EQUIPPING OF THE

SAWYER AND CERTAIN OTHER MATTERS RELATING THERETO
WHEREAS, Mammoth Lakes Pacific Associates, a California Limited Partnership (the “Borrower”) a partnership of which Pacific West Communities, Inc. (the “Developer”) or a related person to the Developer is the general partner, has requested that the California Municipal Finance Authority (the “Authority”) adopt a plan of financing providing for the issuance of exempt facility bonds for a qualified residential rental project pursuant to Section 142(a)(7) of the Internal Revenue Code of 1986 (the “Code”) in one or more series issued from time to time, including bonds issued to refund such exempt facility bonds in one or more series from time to time, and at no time to exceed $45,000,000 in aggregate principal amount (the “Bonds”), to finance or refinance the acquisition, construction, improvement, and equipping of a multifamily rental housing project located at 50 and 62 Inyo Street (APN: 035-290-002-000), Mammoth Lakes, California (the “Project”); and
WHEREAS, pursuant to Section 147(f) of the Code, the issuance of the Bonds by the Authority must be approved by the Town of Mammoth Lakes (the “Town”) because the Project is to be located within the territorial limits of the Town; and WHEREAS, the Town Council of the Town (the “Town Council”) is the elected legislative body of the Town and is one of the “applicable elected representatives” required to approve the issuance of the Bonds under Section 147(f) of the Code; and WHEREAS, the Authority has requested that the Town Council approve the issuance of the Bonds by the Authority in order to satisfy the public approval requirement of Section 147(f) of the Code and the requirements of Section 4 of the Joint Exercise of Powers Agreement Relating to the California Municipal Finance Authority, dated as of January 1, 2004 (the “Agreement”), among certain local agencies, including the Town; and WHEREAS, pursuant to Section 147(f) of the Code, the Town Council has, following notice duly given, held a public hearing regarding the issuance of the Bonds, and now desires to approve the issuance of the Bonds by the Authority.

NOW, THEREFORE, BE IT RESOLVED BY THE TOWN COUNCIL, AS
FOLLOWS:

Section 1. The foregoing resolutions are true and correct.

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Resolution No. 24-

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Section 2. The Town Council hereby approves the issuance of the Bonds by the Authority. It is the purpose and intent of the Town Council that this resolution constitutes approval of the issuance of the Bonds by the Authority, for the purposes of (a) Section 147(f) of the Code by the applicable elected representative of the governmental unit having jurisdiction over the area in which the Project is to be located, in accordance with said Section 147(f) and (b) Section 4 of the Agreement.

Section 3. The issuance of the Bonds shall be subject to the approval of the Authority of all financing documents relating thereto to which the Authority is a party. The Town shall have no responsibility or liability whatsoever with respect to the Bonds.

Section 4. The adoption of this Resolution shall not obligate the Town or any department thereof to (i) provide any financing to acquire or construct the Project or any refinancing of the Project; (ii) approve any application or request for or take any other action in connection with any planning approval, permit or other action necessary for the acquisition, construction, rehabilitation, installation or operation of the Project; (iii) make any contribution or advance any funds whatsoever to the Authority; or (iv) take any further action with respect to the Authority or its membership therein.

Section 5. The officers of the Town are hereby authorized and directed, jointly and severally, to do any and all things and to execute and deliver any and all documents which they deem necessary or advisable in order to carry out, give effect to and comply with the terms and intent of this resolution and the financing transaction approved hereby.

Section 6. This resolution shall take effect immediately upon its adoption.

ADOPTED by the Town Council of the Town of Mammoth Lakes at a regular meeting of the Town Council held on the 21st day of February, 2024. ____________________________________
BILL SAUSER, Mayor
ATTEST:
____________________________________
JAMIE GRAY, Town Clerk

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Council Meeting Date: 2/21/2024
Prepared by: Nolan Bobroff, Community and Economic Development Director Recommended Motion: Staff recommends that the Town Council: (1) Conduct the public hearing under the requirements of TEFRA and the Internal Revenue Code of 1986, as amended (the “Code”); and (2) adopt the resolution approving the issuance of the Bonds by the CMFA for the benefit of Mammoth Lakes Pacific Associates, a California Limited Partnership (the “Borrower”), a partnership of which Pacific West Communities, Inc. (the “Developer”) or a related person to the Developer is the general partner, to provide for the financing of The Parcel Phase 2.2 Apartment Affordable Housing Project, such adoption is solely for the purposes of satisfying the requirements of TEFRA, the Code, and California Government Code §6500 (and following).

Summary: Please see the attached staff report.

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1 TOWN COUNCIL STAFF REPORT
Title: Conduit financing1for The Parcel Apartments Phase 2.2 Affordable Housing Project
Meeting Date: February 21, 2024
Prepared by: Nolan Bobroff, Community and Economic Development Director RECOMMENDATION:

Staff recommends that the Town Council:
1) Conduct the public hearing under the requirements of TEFRA and the Internal Revenue Code of 1986, as amended (the “Code”).
2) Adopt the resolution approving the issuance of the Bonds by the CMFA for the benefit of Mammoth Lakes Pacific Associates III, a California Limited Partnership (the “Borrower”) a partnership of which Pacific West Communities, Inc. (the “Developer”) or a related person to the Developer is the general partner, to provide for the financing of The Parcel Apartments Phase 2.2 Affordable Housing Project, such adoption is solely for the purposes of satisfying the requirements of TEFRA, the Code and the California Government Code Section 6500 (and following).

BACKGROUND/ANALYSIS:

Mammoth Lakes Pacific Associates III (the “Borrower”) requested that the CMFA serve as the municipal issuer of the Bonds in an aggregate principal amount not to exceed $30,000,000 of tax-exempt revenue bonds. The proceeds of the Bonds will be used to finance or refinance the acquisition, construction, improvement and equipping of a multifamily rental housing project located at the northeast corner of Inyo Street & Tavern

Source: Investopedia https://www.investopedia.com/terms/c/conduit-issuer.asp

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2 Road (a portion of APN 035-290-001-000), Mammoth Lakes, California, known as The Parcel Phase 2.2 Apartments Affordable Housing Project (the “Project”).

There are no costs associated with membership in the CMFA and the Town will in no way become exposed to any financial liability by reason of its membership in the CMFA.

In addition, participation by the Town in the CMFA will not impact the Town’s appropriations limits and will not constitute any type of indebtedness by the Town.

FINANCIAL CONSIDERATIONS:

LEGAL CONSIDERATIONS:

None. The Town Attorney has reviewed the request and the attached documents and is supportive of moving forward with this process.

ATTACHMENTS
Attachment 1: Town Council Resolution 24-__ (JPA)

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RESOLUTION NO. 2024-__

RESOLUTION OF THE TOWN COUNCIL OF THE TOWN OF

MAMMOTH LAKES, STATE OF CALIFORNIA, APPROVING THE

ISSUANCE OF THE CALIFORNIA MUNICIPAL FINANCE

AUTHORITY EXEMPT FACILITY BONDS FOR A QUALIFIED

RESIDENTIAL RENTAL PROJECT IN AN AGGREGATE PRINCIPAL
AMOUNT NOT TO EXCEED $30,000,000 FOR THE PURPOSE OF

FINANCING OR REFINANCING THE ACQUISITION,

CONSTRUCTION, IMPROVEMENT, AND EQUIPPING OF THE
PARCEL PHASE 2.2 AND CERTAIN OTHER MATTERS RELATING

THERETO
WHEREAS, Mammoth Lakes Pacific Associates III, a California Limited Partnership (the “Borrower”) a partnership of which Pacific West Communities, Inc. (the “Developer”) or a related person to the Developer is the general partner, has requested that the California Municipal Finance Authority (the “Authority”) adopt a plan of financing providing for the issuance of exempt facility bonds for a qualified residential rental project pursuant to Section 142(a)(7) of the Internal Revenue Code of 1986 (the “Code”) in one or more series issued from time to time, including bonds issued to refund such exempt facility bonds in one or more series from time to time, and at no time to exceed $30,000,000 in aggregate principal amount (the “Bonds”), to finance or refinance the acquisition, construction, improvement, and equipping of a multifamily rental housing project located at the northeast corner of Inyo Street & Tavern Road (a portion of APN 035-290-001-000), Mammoth Lakes, California (the “Project”); and WHEREAS, pursuant to Section 147(f) of the Code, the issuance of the Bonds by the Authority must be approved by the Town of Mammoth Lakes (the “Town”) because the Project is to be located within the territorial limits of the Town; and WHEREAS, the Town Council of the Town (the “Town Council”) is the elected legislative body of the Town and is one of the “applicable elected representatives” required to approve the issuance of the Bonds under Section 147(f) of the Code; and WHEREAS, the Authority has requested that the Town Council approve the issuance of the Bonds by the Authority in order to satisfy the public approval requirement of Section 147(f) of the Code and the requirements of Section 4 of the Joint Exercise of Powers Agreement Relating to the California Municipal Finance Authority, dated as of January 1, 2004 (the “Agreement”), among certain local agencies, including the Town; and WHEREAS, pursuant to Section 147(f) of the Code, the Town Council has, following notice duly given, held a public hearing regarding the issuance of the Bonds, and now desires to approve the issuance of the Bonds by the Authority.

NOW, THEREFORE, BE IT RESOLVED BY THE TOWN COUNCIL, AS
FOLLOWS:

Section 1. The foregoing resolutions are true and correct.

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Resolution No. 24-

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Section 2. The Town Council hereby approves the issuance of the Bonds by the Authority. It is the purpose and intent of the Town Council that this resolution constitute approval of the issuance of the Bonds by the Authority, for the purposes of (a) Section 147(f) of the Code by the applicable elected representative of the governmental unit having jurisdiction over the area in which the Project is to be located, in accordance with said Section 147(f) and (b) Section 4 of the Agreement.

Section 6. This resolution shall take effect immediately upon its adoption.

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1 TOWN COUNCIL STAFF REPORT
Title: Proposed Funding Support for Mammoth Lakes Mosquito Abatement District.

Meeting Date: February 21, 2024
Prepared by: Daniel C. Holler, Town Manager
RECOMMENDATION:

Provide direction to staff to prepare a formal funding agreement with the Mammoth Lakes Mosquito Abatement District (District).

BACKGROUND:

The Mammoth Lakes Mosquito Abatement District provides services primarily in the Old Mammoth Road area (See Boundary Map – Attachment 1). The District was established in 1969. The initial area of the District includes a minimal property tax rate of .01658+/-. As the District expanded, new areas were annexed into the District without working through a tax sharing arrangement for the existing County rate to be adjusted to allow for the District rate. This issue of funding has been raised before and was more recently raised again with the requirement of Snowcreek VIII to be annexed into the District (Planning Commission Resolution 2009-08). This will require a LAFCO process and a request for a tax sharing agreement with Mono County. The District is also requesting tax sharing agreements for the portion of the District previously annexed but without any tax sharing agreement. The District has met with the County and the Town previously to discuss funding.

The request to the County is for a tax sharing agreement to shift the current District tax rate from the County rate over the boundary of the District and to include the Snowcreek VIII annexation. The requested Town support would be through a services agreement or similar created agreement. The current property tax rate generates approximately $109,000.

ANALYSIS:

The Mammoth Lakes Mosquito Abatement District (MLMAD) was formed in 1969 to provide mosquito control to a portion of Mammoth Lakes. The district boundaries include Old Mammoth, part of the Snowcreek development, Valentine Ecological Reserve, and adjacent condominium developments. Service was concentrated in the Old Mammoth area, a neighborhood of older, primarily single-family residences and has expanded into the Snowcreek development areas. Mammoth Creek bisects the district area, flowing from west to east. A large portion of the District currently does not have a tax sharing agreement with Mono County to support the work of the District. (see Attachment 2 showing tax areas that generate revenue and those that do not). Staff are not aware of why areas of the District were not part of a tax sharing agreement at time of creation or subsequent annexations.

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2 The District contracts with Inyo County for services. The Inyo County Agricultural Commissioner has a small, yet effective, program to better manage vector-borne diseases in Inyo County. A proactive plague program has been instituted to monitor and treat plague in Owens Valley. West Nile virus is managed through a combination of public media campaigning and the control of mosquitos by the Owens Valley Mosquito Abatement Program. The Mammoth Lakes Mosquito Abatement District contracts with the Owens Valley Mosquito Abatement Program for services. Attached are sample reports that are provided regarding work completed and information submitted to the District. This information is on the Mono County Website under Mammoth Lakes Mosquito District.

Funding provided through a tax sharing agreement will fluctuate based on assessed value of properties under Prop 13, resales, and new construction. In the case of Snowcreek VIII the tax revenue growth will depend on the rate of build out of the project expected over several years; however, services will begin almost immediately as mosquitos in the area are trapped and monitored and areas of the property may receive various treatments.

The Budget for the District incorporates the following:

FY 23-24 Revenue $129,000
Fund Balance 40,671
Total $169,671
Expenditures
Contract – Owens Valley MAP $70,000
Secretarial 10,000
PERS Unfunded Liability 7,000
Operations/Administrative 9,750
Legal Services (Annexation) 10,000
Reserves/Contingency 62,921
Total $169,671
The limited budget caps the amount of proactive trapping work and treatment of areas that can be accomplished. The work of the District, while primarily focused within the boundary of the District, does provide a broader public benefit by limiting the spread of mosquitos in the Old Mammoth Road Area. The additional costs for the proposed annexation of Snowcreek VIII are still pending.

The funding request to the Town is twofold. First, initial funding will allow the District to ramp up work efforts as revenues from the build out of Snowcreek VIII moves forward.

The area will need to be part of the prevention program. Secondly, the ongoing cost and demands on the District will eventually exceed the revenues generated by the District. The goal of the District is to continue to support an appropriate contract for services, as providing the same level of service on its own is likely not financially viable.

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3 The proposed financial support from Town is in the form of a five year services contract with a base amount for FY24-25 of $30,000. The amount may be paid in agreed upon installments. The amount to increase by $5,000 per year to the base amount of $50,000.

The agreement may have an extension with revenues growing at a max rate of 2% tied to the increase allowed for property taxes under Prop 13, which has a cap of 2%. This funding structure will allow the District to provide a required level of service to meet the District’s mission of mosquito abatement. The work in the OMR road area ultimately benefits a larger area by limiting the potential transmission of disease and information gained through trapping and testing. Regular activity reports and other information would be required to be filed with the Town as well as any requested updates at public meetings.

OPTIONS ANALYSIS
Option 1: Provide Staff direction to work with the Town Attorney and the Mammoth Lakes Mosquito Abatement District representatives and legal counsel to develop a services agreement with the District incorporating the financial terms as presented in the staff report, or as amended. Direct staff to work with the District and Mono County on the annexation of Snowcreek VIII into the District to allow for the allocation of the appropriate tax rate for the entire balance of the District.

Option 2: Provide alternative funding level for the proposed services agreement with the Mammoth Lakes Mosquito Abatement District. Continue to work with Mono County on tax sharing agreement.

Option 3: Provide directions to not proceed with the service agreement and work with the County on funding and work with Snowcreek VIII on the potential removal or delay of the condition to have the property annexed into the District. The District is not supportive of annexing properties that do not provide adequate revenues to provide services.

FINANCIAL CONSIDERATIONS:

The proposed services agreement to support the work of the Mammoth Lakes Mosquito Abatement District will have a direct cost as provided for in the final agreement. The proposed annual amount starts at a base of $30,000 and increases over a five year term to $50,000 with limited increases over time to be considered after the initial five year term.

Staff time will be limited to processing payments, agreement review, insuring reporting, and coordination of public updates. The annual funding will need to be included in future base budgets.

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1 TOWN COUNCIL STAFF REPORT
Title: Approval of Town of Mammoth Lakes and Mono County Whitmore Recreation Area Joint Operations and Maintenance Agreement.

Meeting Date: February 21, 2024
Prepared by: Daniel C. Holler, Town Manager
RECOMMENDATION:

Approve Town of Mammoth Lakes and Mono County Whitmore Recreation Area Joint Operations and Maintenance Agreement (“Agreement”), subject to final legal review and approval by Mono County.

BACKGROUND:

The Town of Mammoth Lakes and Mono County entered into a Joint Powers Agreement for the management of the Whitmore Animal Control Shelter in May 2000 and amended the agreement in October 2000 to include management of the Whitmore Recreation Facility. The Joint Powers Agreement (JPA) was again amended in 2003 to include additional facilities at Whitmore Park. The governance structure, budgeting and cost sharing provided for in the JPA has not been adhered to for the past several years. The proposed Joint Operations and Maintenance Agreement would replace the current JPA.

Town Staff have been working with the Los Angeles Department of Water and Power (LADWP) to expand the Whitmore area lease. The expanded park site was initially pursued to meet a minimum park size for grants (approx. 50 acres) including a lease of greater than 30 years. The expanded lease area will provide expanded recreational opportunities.

LADWP has requested that the Mono County Animal Shelter and the Town recreational facilities be retained in a single lease. LADWP has also requested a copy of a draft operating agreement between the Town and the Mono County to proceed with the lease amendment, which will still take a considerable amount of time to finalize. The proposed Agreement satisfies this request. A draft lease is attached which includes a map showing current leased areas and requested expanded area.

ANALYSIS:

The current management of the Whitmore Park facilities are provided by the Town. This includes programming, maintenance, and capital improvements. The Town bills the County each year for 50% of the net operating costs of park-related facilities (including Whitmore Pool). The Town fully funds capital improvements with no reimbursement from the County. Over the past couple of years this investment was approximately $595,700.

The Town has not participated in the 50/50 cost share for several years for the Animal Shelter. The Town takes 12-15 dogs per year to the Shelter. Under the JPA the operating costs and capital projects would go through a joint review process with each agency sharing 50% of the costs based on net operating costs and splitting capital costs based on bids.

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2 The County takes the lead on the Animal Control Shelter and the Town takes the lead on the recreation facilities. The County currently funds the operation and maintenance of the Animal Control shelter.

The proposed Agreement incorporates the current net cost share of 50/50 for recreational facilities; the same as current practice. The agreement sets a maximum on the cost share amount and limits the growth in costs. This was done so the County would not see significant increases resulting from capital investment or changes in programming that could significantly impact cost allocations in any given year. The proposal eliminates the sharing of capital costs. Starting with the new lease, the Town will be charged by LADWP for water usage at Whitmore Park. The Town is proposing to pay this charge vs. putting in meters to determine the amount of water used by the Animal Control Shelter. The proposal reflects current processes and eliminates future uncertainty regarding sharing of capital costs (does not preclude doing a joint project), eliminates unplanned increases in costs and eliminates one of the parties from potentially stopping (or slowing) capital projects due to costs and/or impacts on operating budgets.

The proposed agreement establishes an operating cost share for the County beginning with FY23-24, with a maximum amount of $178,000 for the base year. The billing amount may not increase more than 5% per year, unless justified and agreed to by the County. This provides a level of certainty and control on growth in the obligation for operating costs.

OPTIONS ANALYSIS
Option 1: Approve the proposed Whitmore Recreation Area Joint Operations and Maintenance Agreement and request Mono County consider approval and approve minor non-substantive amendments as may be requested by the County.

Option 2: Approve the Agreement in concept and request it be brought back to Council for final approval after being presented to Mono County for approval.

Option 3: Do not approve the proposed agreement and provide additional direction to staff to amend the agreement.

Attachment:

Draft Agreement

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1 Town of Mammoth Lakes and Mono County
Whitmore Recreation Area Joint Operations and Maintenance Agreement This Whitmore Recreation Area Joint Operations and Maintenance Agreement (“Agreement”) is entered into on ____________ ____, 2024 ("Effective Date"), by and between the Town of Mammoth Lakes, a municipal corporation, located at 437 Old Mammoth Road Suite 230, in Mammoth Lakes, California ("the Town"), and Mono County, California, a political subdivision of the State of California (“the County”). The Town and County are also referred to in this Agreement individually as a "Party" or collectively as the "Parties."

RECITALS

1. The Town and County entered in to a Second Amended Joint Powers Agreement (JPA) on April 16, 2003 providing for the management of: (a) Whitmore Animal Control Shelter, parking area, and adjoining area for animal use, operated by the County; and (b) the Whitmore Park facilities operated by the Town, which include a picnic area, restroom/maintenance building, concession stand, baseball field, two softball fields, a nine lane running track, soccer/football turf sports field, large parking lot, irrigation pump room, 25m swimming pool, small wading pool, pool support building (pump room, offices and changing rooms), smaller pump room and small storage building and parking lot (“Park Facilities”). The Whitmore Animal Control Shelter and the Park Facilities collectively comprise the “the Whitmore Facilities” and are located adjacent to Benton Crossing Road (575 Benton Crossing Road) and near its intersection with U.S. Highway 395.

2. The Parties have not operated under the formal terms of the existing Joint Powers Authority (JPA) for at least the previous ten (10) years and wish to enter into this Agreement to supersede the JPA and better reflect the respective obligations of the Parties.

3. The Whitmore Facilities are located on lands owned by the Los Angeles Department of Water and Power (“LADWP”), which has leased the lands to the Town for public “recreation uses” as per two separate Business Leases. Business Lease No. 1423 is for a term of 30 years and is set to expire on February 28, 2042. LADWP Business Lease No. 1093 incorporates the use of the Whitmore Pool that expired.

4. The Town is pursuing a new, expanded 50-year lease agreement with LADWP for the existing Whitmore Facilities that would incorporate Business Lease No. 1423 and Business Lease No. 1093 into a new master lease. The current site is comprised of approximately 36.99 acres. The expansion area is approximately 75.76 acres for a total of 112.75 acres for existing and future park related facilities including the Mono County Animal Control Shelter. Attachment A includes a map of the existing and proposed lease areas, and the Parties agree to pursue a single lease agreement with LADWP for all uses at the Whitmore Facilities.

5. The Town has continued to invest substantial resources in the maintenance of the Park Facilities and in new and/or replacement of capital improvements to the Whitmore Facilities to the benefit of the Town and County residents and visitors.

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2 6. The County has continued to maintain and operate the Animal Control Shelter to the benefit of the County and Town residents and visitors.

7. The Town and County have continued to share limited net costs for the operation of the Whitmore Facilities.

8. The Town and County desire to continue to provide current and future services including additional capital investments located on the leased property occupied by the Whitmore Facilities.

9. The parties agree that this Agreement is the appropriate mechanism to continue to provide services to County and Town residents and the broader region in a cost-effective manner, reflective of current operations and regular maintenance and the sharing of the net costs of the Whitmore Facilities as provided for in this Agreement.

10. Each party may continue to individually or in cooperation with each other construct new capital public facilities or infrastructure and to provide for major maintence of facilities.

11. The Parties agree that this new Agreement will govern the capital investments, operations, and management of public services provided through current and future Whitmore Facilities and will replace and supersede the Second Amended Joint Powers Agreement between the Parties.

TERMS AND CONDITIONS
Section 1: Purpose. The purpose of this agreement is to enable the parties to effectively operate and maintain current and future facilities located at the Whitmore Facilities and to work together on any mutually acceptable operations, programming and modifications, additions, or improvements and to define separate and shared funding responsibilities.

Section 2: Term. The term of this Agreement shall commence on the date this Agreement has been executed by both Parties and shall remain in effect for the duration of the land lease(s) with LADWP for the Whitmore Facilities, as it/they may be extended from time to time, unless terminated as provided for herein. For avoidance of doubt, this Agreement shall remain in effect with respect to such portion of the Whitmore Facilities as to which an LADWP lease remains in effect, and shall terminate only as to such portion of the Whitmore Facilities as to which the relevant LADWP lease has expired or been terminated.

Section 3: Termination. Either Party may terminate this Agreement by providing written notice of termination to the other Party not less than 90 days in advance of the effective date of termination, provided that neither party may abandon any portion of the Whitmore Facilities without first: (a) either completing the removal of the improvements in the area to be abandoned or the transfer of ownership and responsibility for the operation and maintenance of such facilities to another public entity with the consent of LADWP; and (b) completing any site remediation required by LADWP. The transfer of assets and/or remediation to be completed or secured prior to termination.

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3 Section 4: Capital Improvements by the Town. Upon written consent and approval of the construction plans by LADWP, including any other site alterations and improvements as specified by LADWP, the Town may construct new recreational amenities and improve existing facilities at the Park Facilities, which may include but not be limited to: playing fields, parking, picnic amenities, playgrounds, trails, paved access, shelters, bleachers, support facilities, restrooms, changing rooms, multi-use buildings, storage facilities, fencing, and other related recreational facilities, replacement of current facilities, turf play and multi-purpose areas, lighting, and safety improvements. All work shall be done in accordance with applicable federal, state and local laws and regulations.

Section 5: Capital Improvements by the County. Upon written consent and approval of the construction plans by LADWP, including any other site alterations and improvements as specified by LADWP the County may construct new facilities at the Animal Control Shelter, provide additions to the Animal Control Shelter, parking, dog play areas, fencing, and other amenities to support Animal Control operations or additional related public facilities for recreational purposes or animal control services. All work shall be done in accordance with applicable federal, state, and local laws and regulations.

Section 6. Cooperative Capital Projects and Funding. The parties may engage in cooperative capital improvement projects as permitted by LADWP to the benefit of the Town and County in providing public services. The Parties may jointly or separately pursue grant funding to assist with facility development. Unless the Parties enter into an agreement to construct a specific project as a cooperatively funded project, the Party initiating a project is responsible for the cost of planning, design, development, and construction of the project.

Section 7. Environmental Review and Compliance with Applicable Law. The Partiesshall conduct environmental review of any activities they respectively undertake, including without limitation construction and operation of facilities, to the extent required by the California Environmental Quality Act (“CEQA”) and in compliance with any LADWP lease terms and requirements.

Section 8. Utility Services and Snow Removal.

A. The Town shall be solely responsible for arranging for and paying for utility service and snow removal service on the leased site to be provided to the Park Facilities and any additional Facilities constructed pursuant to Section 4, and for paying water use fees charged by LADWP.

B. The County shall be solely responsible for arranging for and paying for utility service and snow removal service on the leased site to be provided to the Animal Control Shelter and any additional Facilities constructed pursuant to Section 5, excluding water use fees charged by LADWP.

C. The parties may agree to cooperatively arrange for and pay for snow removal services on a case-by-case basis based on the effective use of the Parties’ respective resources.

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4 Section 9. Operating and Maintenance Shared Expenses.

A. Annual maintenance and operating expenses (referred to as “operating costs”) for the Park Facilities include, but are not limited to salaries, temporary wages, employee benefits and expenses, maintenance and recreation supplies, garage vehicle services, contractual services, memberships and dues, training and education, advertising and legal notices, printing and reproductions, parks, pool, grounds and building maintenance, facility lease, taxes and fees, replacement costs of computer hardware and machinery and equipment.

The Town shall make the payments for all maintenance and operating costs and the County shall reimburse the Town for no less than fifty percent (50%) of actual net costs (minus Park Facility revenues) within forty-five (45) days from receipt of the annual invoice from the Town. The base year for allocation of shared costs is Fiscal Year 2023- 24 with a maximum amount of $178,000 for the base year. The County shall not be responsible for increases of more than five percent (5%) in any subsequent year without additional justification and written approval by Mono County. The Town will invoice the County annually at the close of the fiscal year for the County’s fifty percent (50%) share of annual operating and maintenance costs minus Park Facility revenues as outlined herein.

B. In lieu of the allocation of costs for public utilities and capital costs for new or enhanced Park Facilities, the County will provide for all the operational and maintenance costs of the Mono County Animal Control Shelter.

Section 10. Town as Lead Agency and Coordination with Mono County.

A. As the primary lease holder and operator of the majority of the Whitmore Facilities, the Town will be the lead agency regarding the overall operations and maintenance and future investments and coordination with LADWP. The County will control the Animal Control Shelter operations and any expansion as well be the lead agency for CEQA or other work on the sites depicted in Attachment A that falls under local government authority as the sites are located outside of the Town of Mammoth Lakes.

B. Town shall have the right to operate the Park Facilities and will be the lead agency for management of the Park Facilities and shall operate the Park Facilities for the purposes for which they were constructed, and for reasonably similar recreation purposes. The Town Parks and Recreation Director or designee shall notify the Mono County Public Works Director or designee of any new use or change to an existing use of the Park Facilities.

C. The hours of operation of the Park Facilities and the terms and conditions of their use by the public shall be determined by the Town.

D. Town shall provide regular maintenance and on-going repairs to the Park Facilities in order to keep them in a satisfactory condition for use by the public.

E. Levels of maintenance and staffing will be determined by the Town and the annual operating plan for the Park Facilities shall be presented by to the Mono County Public Works Director or designee for review by May 1st of each year, if so requested by the

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5 County. Adjustments to the plan and joint approval shall occur prior to May 31st of each year.

F. The Town Parks and Recreation Director or designee and the Mono County Public Works Director or designee shall meet upon request on an annual basis to discuss the overall operations of the Park Facilities, discuss planned maintenance or proposed improvements to the Park Facilities.

G. The Town Parks and Recreation Director or designee shall provide an annual written Park Facilities report by October 1st of each year to the Mono County Public Works Director or designee, if so, requested by the County. The report shall include reservations for the Park Facilities, uses of the Park Facilities, revenue received from Park Facilities operations and the annual operating costs incurred by the Town maintaining the Park Facilities.

Section 11. Insurance. The Town and the County shall each maintain such coverage as they determine is appropriate with respect to their obligations hereunder, which may be provided through participation in a joint powers self-insurance pool. Upon request of either Party, the other Party shall provide evidence of such coverage.

Section 12. Indemnification. Neither the Town nor any officer, employee or volunteer thereof is responsible for any damage or liability occurring by reason of anything done or omitted to be done by the County under or in connection with any work, authority or jurisdiction delegated to the County under this Agreement. It is understood and agreed that, pursuant to Government Code Section 895.4, the County shall fully defend, indemnify and save harmless the Town, its officers, employees and volunteers from all claims, suits, or actions of every nature, kind and description brought for or on account of injury (as defined in Government Code Section 810.8) occurring by reason of anything done or omitted to be done by the County under or in connection with any work, activity or jurisdiction delegated to the County under this Agreement.

Neither the County nor any officer, employee or volunteer thereof is responsible for any damage or liability occurring by reason of anything done or omitted to be done by the Town under or in connection with any work, activity or jurisdiction delegated to the Town under this Agreement. It is understood and agreed that, pursuant to Government Code Section 895.4, the Town shall fully defend, indemnify and save harmless the County, its officers, employees and volunteers from all claims, suits, or actions of every nature, kind and description brought for or on account of injury (as defined in Government Code Section 810.8) occurring by reason of anything done or omitted to be done by the Town under or in connection with any work, authority or jurisdiction delegated to the Town under this Agreement.

Section 13 Notice. All notices or other communications required or permitted hereunder shall be in writing, and shall be personally delivered or sent by registered or certified mail, return receipt requested, and shall be deemed received upon the earlier of (i) if personally delivered, the date of delivery to the address of the person to receive such notice or (ii) if mailed, three (3) business days after the date of posting by the United States post office.

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6 To the Town: Town of Mammoth Lakes
P.O. Box 1609
Mammoth Lakes, CA 93546
Attn: Town Manager
To the County Mono County
P.O. Box 511
Bridgeport, CA 93517
Attn: County Administrative Officer
Notice of change of address shall be given by written notice in the manner detailed in this Section.

Rejection or other refusal to accept, or the inability to deliver because of changed address of which no notice was given, shall be deemed to constitute receipt of the notice, demand, request, or communication sent.

Section 14. Counterparts. This Agreement may be executed in multiple counterparts, each of which shall be deemed an original, but all of which, together, shall constitute the same instrument.

Section 15. Captions. Any captions to, or headings of, the sections or subsections of this Agreement are solely for the convenience of the parties hereto, are not a part of this Agreement, and shall not be used for the interpretation or determination of the validity of this Agreement or any provision hereof.

Section 16. No Obligations to Third Parties. Except as otherwise expressly provided herein, the execution and delivery of this Agreement shall not be deemed to confer any rights upon, nor obligate any of the parties thereto, to any person or entity other than the parties hereto.

Section 17. Amendments. The terms of this Agreement may not be modified or amended except by an instrument in writing executed by each of the parties hereto.

Section 18. Applicable Law and Venue. This Agreement shall be governed by and construed in accordance with the laws of the State of California. Any action to interpret or enforce this Agreement shall be brought and maintained exclusively in the Mono County Superior Court.

Section 19. Authority to Execute Agreement. The County and the Town warrant that the individuals who have signed this Agreement have the legal power, right, and authority to enter into this Agreement so as to bind each Party for whom they sign to perform as provided herein.

Section 20. Incorporation of Recitals and Exhibits. All of the Recitals and Exhibits to this Agreement are incorporated by reference as though fully set forth in this Agreement.

Section 21. Entire Agreement. This Agreement supersedes any prior agreements, negotiations, and communications, oral or written, and contains the entire agreement between the Town and County as to its subject matter. No subsequent agreement, representation, or promise made by either Party, or by or to any employees, officer, agent or representative of either Party shall be of any effect unless it is in writing and executed by the Parties to be boundthereby.

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7 IN WITNESS WHEREOF, the Parties executed this Agreement to be effective on the Effective Date.

TOWN
Town of Mammoth Lakes, a municipal
corporation
By:

Name: ___________________
Title: Town Manager
Date:

COUNTY
Mono County, a political subdivision
of the State of California
By:

Name: _________________________
Title: __________________________
Date:

Approved as to Form:
_______________________ __________________________
Andrew Morris Stacey Simon
Town Attorney County Counsel

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8 EXHIBIT A
Map of Whitmore Recreation Area

TOWN OF MAMMOTH LAKES

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1 TOWN COUNCIL STAFF REPORT
Title: Adoption of a Resolution approving the form and authorizing execution of certain lease financing documents in connection with the offering and sale of certificates of participation relating thereto to finance the cost of construction and equipping a new t
Meeting Date: February 21, 2024
Prepared by: Daniel C. Holler, Town Manager
RECOMMENDATION:

Adopt the Resolution approving the form and authorizing execution of certain lease financing documents in connection with the offering and sale of certificates of participation relating thereto to finance the cost of construction and equipping a new town facility and the cost of acquiring certain land and improvements and authorizing and directing certain actions with respect thereto.

BACKGROUND:

The Town is working on two major capital projects which will require debt financing. This includes the construction of a new Town Office and the construction of a new Performing Arts Auditorium. The Town Office is located as part of the civic center complex located at the corner of Sierra Park and Tavern Roads, adjacent to the Mono County Administrative Center, the Superior Court Building, and the Mammoth Lakes Police Station. The financing for the Town Offices includes the construction and equipping of the new facility. The new Performing Arts Auditorium (Theater) is located at 100 College Parkway. The financing for the Performing Arts Auditorium is being facilitated by the purchase of land from the Mammoth Lakes Foundation. The financing provides $25 million for the Town Office project and $4.5 million for the land purchase for total project costs of $29,500,000. The debt has a 25 year term. A tentative schedule for the issuance of the debt is attached.

ANALYSIS:

Adoption of the resolution will authorize the execution and delivery of the documents required to effectuate the delivery of certificates of participation to finance the projects so long as the principal amount of the certificates of participation does not exceed $33,110,000, the maximum true interest cost does not exceed 4.42%, and the final maturity does not extend beyond June 1, 2049. These are the Maximum Parameters for the debt.

This amount achieves the funding necessary for the noted projects and funds all other related costs as part of the debt transaction, which includes $600,000 in cash resulting from the payoff of existing debt.

An explanation of each of the documents being approved by the resolution is provided below. The Resolution is attached. The financing team is working to achieve a lower issuance amount that still funds the two projects. A good faith estimate has been prepared,

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2 which reduces the debt amount to $28,130,000. This includes a lower interest rate, securing insurance, using a surety to fund the reserve, and achieving an Original Issue Premium.

A copy of the Preliminary Sources & Use of Funds for the maximum issuance amount and the Good Faith Estimate are attached along with the estimated debt service schedule for each. The final sizing and financial structure of the bonds will occur in June 2024.

FINANCIAL CONSIDERATIONS:

Staff have worked with Marty Johnson of JNA Consulting Group, LLC as the Town’s financial advisor on the proposed debt issuance for the Capital Improvement Financing Project, along with Brian Quint, as Bond Counsel of Quint & Thimmig L.L.P and, Dennis McGuire, of Piper Sandler & Co as Underwriter.

The process used for the financing is a lease structured deal using the issuance of Certificates of Participation (COPs). The lease structure exists between the Town of Mammoth Lakes and the Mammoth Lakes Municipal Service Corporation. For this discussion the terms “debt”, “financing” Certificates of Participation or COPS”, “Bonds” or “Issuance” all refer to the same process of securing funding for the noted projects through a public offering of debt secured by the Town. The details of the structure are provided in the authorized documents. The use of COPs is one of the legal structures used in California to issue debt that is ultimately an obligation of the Town’s General Fund.

The chart below shows the cash flow proforma using the Good Faith Estimate. The debt payment structure commits $500,000 per year that was previously used to pay back the internal loan between the General Fund and the Vehicle Replacement Fund. The loan will be completely repaid prior to FY 2025. The proforma includes the use of current Town office lease payments after September 2026.

The financing includes the use of $2 million of existing Town funds to pay off the Police bonds. This provides approximately $600,000 to be used in this new financing and frees up the annual debt service payment ($315,000+/-) to be used to pay the new debt. This amount is shown in the proforma. The retirement of the debt is necessary to utilize some of the same assets in securing the new debt for the proposed financing (i.e., Police Station and the Corporation (Public Works) Yard). Additional assets are required to meet or exceed the debt issuance, including the new Community Recreation Center and Transit Center.

The debt structure allows for using the completed new Town Office Building for security following completion.

The proforma includes the use of $180,000 in Measure U funds over the 25 year life of the debt. This covers the $4.5 million used to purchase land associated with the new theater.

The interest cost is assumed to be part of the General Fund obligation. The proforma extends out 13 years from Fiscal Year 2024-25 to 2036-37 and to when the Judgement Bonds are paid off. The proforma shows a total of $1,334,662 net additional need over the 13 years prior to paying off the Judgement Bonds. This shortfall may be addressed each year as part of the Budget or by establishing a sinking fund of $1.4 million and drawing down the amount needed each year for debt service. A small cushion is recommended. The

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3 $180,000 of Measure U funds is recommended to fund the principal amount of $4.5 million for the land purchase, with related interest costs covered by the General Fund.

The use of current debt and lease payments and one time funds/reserves provides the cash flow needed to fund the projected debt service without using any General Fund operating revenues. The funds committed for a substantial period of time will not be available for other purposes. The structure proposes to use $3.4 million in reserves/one time funds, which are currently available (outside of housing funds). The use of Measure U funds will limit growth in programming or other projects. As noted above, the final proforma will be prepared in June 2024 when the bond sizing and sale and the proforma will be adjusted accordingly.

Documents
The financing requires several documents to be approved by the Town and the Municipal Service Corporation (Corporation), with some documents to be approved only by one or the other body. All documents are approved by resolution. The documents requiring approval of only one body are noted below (i.e., by the Town or the Corporation). The rest of the documents are approved by both bodies.

The resolutions approve the form and authorize the execution and delivery of the following documents as described below. The appropriate documents are attached to each resolution. (a) Site and Facility Lease (SFLease). This is the agreement pursuant to which the Town leases the new Community Recreation Center, the Police Station, the Corporation Yard, and the Transit Center (collectively, the “Property”) to the Mammoth Lakes Municipal Service Corporation (the “Corporation”), which serves as the straw man for the lease-leaseback. The term of this agreement is coterminous with the lease agreement.

Certificates of Particiaption - Series 2024
Resources Available for Debt Servcie - Capital Projects Good Faith Estimate
Fiscal
Year
Cuurent
Lease
Internal
Loan
Net Jdg
Bond
PD Bonds
Payment
Resurces
Available
Annual Debt
Service
Additional
Need
Measure U
Land Deal
Net
Additional
Need
2025 500,000 130,000 315,000 945,000 1,183,212 (238,212) 180,000 (58,212) 2026 500,000 130,000 315,000 945,000 1,294,700 (349,700) 180,000 (169,700) 2027 187,500 500,000 130,000 315,000 1,132,500 1,394,700 (262,200) 180,000 (82,200) 2028 375,000 500,000 130,000 315,000 1,320,000 1,514,700 (194,700) 180,000 (14,700) 2029 375,000 500,000 130,000 315,000 1,320,000 1,513,450 (193,450) 180,000 (13,450) 2030 375,000 500,000 130,000 315,000 1,320,000 1,646,700 (326,700) 180,000 (146,700) 2031 375,000 500,000 130,000 315,000 1,320,000 1,642,700 (322,700) 180,000 (142,700) 2032 375,000 500,000 130,000 315,000 1,320,000 1,642,950 (322,950) 180,000 (142,950) 2033 375,000 500,000 130,000 315,000 1,320,000 1,642,200 (322,200) 180,000 (142,200) 2034 375,000 500,000 130,000 315,000 1,320,000 1,640,450 (320,450) 180,000 (140,450) 2035 375,000 500,000 130,000 315,000 1,320,000 1,642,700 (322,700) 180,000 (142,700) 2036 375,000 500,000 130,000 315,000 1,320,000 1,638,700 (318,700) 180,000 (138,700) 2037 375,000 500,000 2,000,000 315,000 3,190,000 2,508,700 681,300 (1,334,662)

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4 (b) Lease Agreement (LeaseAgt). This is the agreement pursuant to which the Town leases the Property back from the Corporation. The term of this agreement is through June 1, 2049. This agreement requires the Town to make semi-annual lease payments and requires the Town to insure and maintain the Property throughout the term of the Lease. (c) Assignment Agreement (AssignmentAgt) This is the agreement pursuant to which the Corporation will assign to U.S. Bank Trust Company, National Association (the “Trustee”), for the benefit of the owners of the certificates of participation, certain of its rights under the Lease Agreement, including its right to receive lease payments from the Town. (Approved only by the Municipal Service Corporation). (d) Trust Agreement (TrustAgt). This is the agreement pursuant to which the Trustee will hold, invest, and disburse the proceeds of the certificates of participation and will collect lease payments from the Town for disbursement to the investors. Moneys received by the Trustee from the sale of the certificates of participation will be used to finance the Project.
(e) Certificate Purchase Agreement (CPA). This is the document pursuant to which the Town sells the certificates of participation to the underwriter (Piper Sandler & Co.). The underwriter’s compensation is limited to 1% of the principal amount of the certificates of participation. (Approved by the Town only).
(f) Continuing Disclosure Certificate (CDC). This document sets forth the Town’s obligation to provide certain financial data to the municipal bond market so that purchasers of the certificates of participation in the secondary have current information about the Town. (Approved by the Town only).
(g) Preliminary Official Statement (POS). This is the offering document (similar to a prospectus) which provides a detailed description of the Town and the issue and the sources of payment. This document permits prospective investors to make an informed investment decision regarding the purchase of certificates of participation. (Approved by the Town only).

The Town Council resolution also authorizes the Town to pay or otherwise provide for the payment of its outstanding lease agreement, executed in 2015, to finance the new police station.

LEGAL CONSIDERATIONS:

All the legal documents have been prepared by Bond Counsel to ensure all legal requirements have been met.

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Capital Funding Discussion
February 2024
Prepared by
JNA Consulting Group, LLC Page 118 of 563
Capital Funding Discussion
JNA Consulting Group, LLC

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New Town Hall
Needed bond funding $25,000,000
To Be Complete Aug 2026
Land purchase
Needed bond funding $4,500,000
Related financing items
Reserve fund (equal to one year’s debt service)
Will use a surety bond in lieu of cash if available
Capitalized interest (used to pay interest during construction) Can be avoided if sufficient assets secure financing
Transaction costs
Bond Financing

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Capital Funding Discussion
JNA Consulting Group, LLC
Interest Rates
 Rates in 2022 were up
and down with an
overall upwards trend
until the end of the year
 Since the peak in
October 2023, rates
dropped ~120 bps on
expectations of
numerous rate cuts in
2024
 Rates have ticked up
recently as expectations
moderate on timing
and number of cuts

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0.0%

0.5%

1.0%

1.5%

2.0%

2.5%

3.0%

3.5%

4.0%

4.5%

5.0%
5YR MMD 10YR MMD 20YR MMD
AAA MMD since January 1, 2021

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Capital Funding Discussion
JNA Consulting Group, LLC
Outstanding GF Debt Service
 2015 Police Station
 3.51% interest rate
 August 2025 call
date
 2017 Judgement Bonds
 4.06% interest rate
 October 2027 call
date

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$0.0
$0.5
$1.0
$1.5
$2.0
$2.5
2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 Millions
Outstanding Bonds
Police Facility Judgement Bonds

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Capital Funding Discussion
JNA Consulting Group, LLC
2015 Financing
Issued to fund police department facility
Balance after June 1, 2024 payment is $1,690,000
Both the Corporate Yard and Police Facility secure the 2015 Financing
Freeing those assets up is critical to the ability to issue the 2024 COPs without capitalized interest
Bonds are callable August 2025
2015 Bonds can be defeased June 1, 2024 to the August
2025 call date at a total estimated cost of $1,715,000
Will work with bondholder for earlier prepayment
Defeasance will also free up reserve fund of $315,000 for use in Town Hall project

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Capital Funding Discussion
JNA Consulting Group, LLC
2024 COPs Assumptions
Property tax revenues
Interest rates
Current rate estimated to be ~4.15%
Pro forma numbers use ~4.42%
Bond structure
25-year repayment term
Payments structured to fit available revenues
Assumes premium and discount bonds
Assumes cash funded reserve
Uses ~ $600K of Town cash
No capitalized interest

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Capital Funding Discussion
JNA Consulting Group, LLC
Proposed GF Debt Service
 2015 Police Station
 2016 Judgement Bonds
 2024 financing
structured to mitigate
initial impact and fit
with available resources
 Debt service attributable
to land purchase expected
to be paid from Measure U
revenues

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0.0 0.5

1.0 1.5

2.0 2.5

3.0 3.5

4.0 202320242025202620272028202920302031203220332034203520362037203820392040204120422043204420452046204720482049 Millions
Police Facility Judgement Town Hall/Land

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Capital Funding Discussion
JNA Consulting Group, LLC
Available Revenues for Town Hall
 Town has identified
following sources for
repayments
 Expiration of lease for
current Town Hall
 Expiration of PD
financing
 Expiration of Internal
Loan
 Net cash from Judgement
Bond payment
 “Other”
 Town has identified ~$2m
to be available between
FY25 and FY26 to cover
the payment

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$0.0
$0.5
$1.0
$1.5
$2.0
$2.5
$3.0
$3.5
Millions
Current Lease Internal Loan Net Jdg Bond
PD Bonds Other Proposed Town Hall DS

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Capital Funding Discussion
JNA Consulting Group, LLC
Land Purchase Debt Service
 Town expects to make
payments from Measure U
revenues and other sources

Page 8 ends

$0.0
$50.0
$100.0
$150.0
$200.0
$250.0
$300.0
$350.0
$400.0
Thousands
Proposed Land DS

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Capital Funding Discussion
JNA Consulting Group, LLC
Bond Issuance Process
 Council/MLMSC adopts bond
documents (February 21)
 Rating Presentation (May 22)
 Construction bids in (June 5)
 Bond pricing (June 18)
 Bond closing (July 2)
 Schedule
developed to
provide
flexibility in
sizing bonds
 Bond issuance
will not exceed
$33.110 million
 With expected
use of bond
insurance and
surety bond,
issuance of
~$28.5 million
anticipated

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Capital Funding Discussion
JNA Consulting Group, LLC
Questions?

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Quint & Thimmig LLP 01/16/24
02/01/24
02/14/24
02/15/24
13021.16

TOWN OF MAMMOTH LAKES
RESOLUTION NO. ___

RESOLUTION APPROVING THE FORM AND AUTHORIZING THE

EXECUTION OF CERTAIN LEASE FINANCING DOCUMENTS IN

CONNECTION WITH THE OFFERING AND SALE OF

CERTIFICATES OF PARTICIPATION RELATING THERETO TO

FINANCE THE COST OF CONSTRUCTING AND EQUIPPING A

NEW TOWN HALL FACILITY AND THE COST OF ACQUIRING

CERTAIN LAND AND IMPROVEMENTS AND AUTHORIZING AND

DIRECTING CERTAIN ACTIONS WITH RESPECT THERETO
RESOLVED, by the Town Council (the “Council”) of the Town of Mammoth Lakes (the “Town”):

WHEREAS, the Town, with the assistance of the Mammoth Lakes Municipal Service Corporation (the “Corporation”), has determined at this time, due to prevailing interest rates in the municipal bond market and for other reasons, to finance the cost of constructing and equipping a new Town Hall facility and the cost of acquiring certain land and improvements (collectively, the “Project”), and to implement a lease financing for such purposes; WHEREAS, it is in the public interest and for the public benefit that the Town authorize and direct execution of the Lease Agreement (hereinafter defined) and certain other financing documents in connection therewith;
WHEREAS, a preliminary official statement containing information material to the offering and sale of the Certificates described below (the “Preliminary Official Statement”) has been prepared on behalf of the Town;
WHEREAS, the documents below specified shall be filed with the Town and the members of the Council, with the aid of its staff, shall review said documents; and WHEREAS, pursuant to section 5852.1 of the Government Code, which became effective on January 1, 2018 by the enactment of Senate Bill 450, certain information relating to the Certificates is set forth in Exhibit A attached to this Resolution, and such information is hereby disclosed and made public;
NOW, THEREFORE, it is hereby DECLARED and ORDERED, as follows:

Section 1. Certificates of Participation (2024 Capital Improvement Financing Project) (the “Certificates”) are hereby authorized to be executed and delivered pursuant to the provisions of

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the Trust Agreement, as hereinafter defined, to finance the Project and to pay the costs of the financing.

Section 2. The below-enumerated documents, in the forms on file with the Town Clerk, be and are hereby approved, and the Mayor, the Vice Mayor, the Town Manager, the Finance Director, or the designees thereof (the “Designated Officer”), are hereby authorized and directed to execute said documents, with such changes, insertions and omissions as may be approved by such officials:
(a) a site and facility lease, by and between the Town, as lessor, and the Corporation, as lessee, pursuant to which the Town will lease certain existing Town property (collectively, the “Property”) to the Corporation, for the purpose of leasing the Property back to the Town pursuant to the Lease Agreement;
(b) a lease agreement relating to the Property, between the Corporation, as lessor, and the Town, as lessee (the “Lease Agreement”), so long as the principal amount of the Lease Agreement is not greater than $33,110,000, the true interest cost of the Lease Agreement does not exceed

4.42% and the term of the Lease Agreement does not extend beyond June 1, 2049; (c) a trust agreement, by and among the Corporation, the Town and U.S. Bank Trust Company, National Association, as trustee, relating to the execution and delivery of the Certificates (the “Trust Agreement”); and
(d) a continuing disclosure certificate.

Section 3. A certificate purchase agreement, by and between Piper Sandler & Co., as underwriter (the “Underwriter”), and the Town, relating to the purchase by the Underwriter of the Certificates, in the form on file with the Town Clerk, be and is hereby approved, and any Designated Officer is hereby authorized and directed to execute said document, with such changes, insertions and omissions as may be approved by such official, so long as the Underwriter’s discount does not exceed 1.00% of the principal amount of the Certificates.

Section 4. The Council hereby approves the Preliminary Official Statement, in the form on file with the Town Clerk, together with any changes therein or additions thereto deemed advisable by any Designated Officer. The Council authorizes and directs any Designated Officer to deem the Preliminary Official Statement “final” pursuant to Rule 15c2-12 under the Securities Exchange Act of 1934 (the “Rule”).

Section 5. Any Designated Officer is authorized and directed to cause the Preliminary Official Statement to be brought into the form of a final official statement (the “Final Official Statement”) and to execute said Final Official Statement, dated as of the date of the sale of the Certificates, and a statement that the facts contained in the Final Official Statement, and any supplement or amendment thereto (which shall be deemed an original part thereof for the purpose of such statement) were, at the time of sale of the Certificates, true and correct in all material respects and that the Final Official Statement did not, on the date of sale of the Certificates, and does not, as of the date of delivery of the Certificates, contain any untrue statement of a material fact with respect to the Town or omit to state material facts with respect

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-3-
to the Town required to be stated where necessary to make any statement made therein not misleading in the light of the circumstances under which it was made. The Designated Officers shall take such further actions prior to the signing of the Final Official Statement as are deemed necessary or appropriate to verify the accuracy thereof. The execution of the final Official Statement, which shall include such changes and additions thereto deemed advisable by any Designated 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 final Official Statement by the Town.

Section 6. The Final Official Statement, when prepared, is approved for distribution in connection with the offering and sale of the Certificates.

Section 7. In order to finance the Project, it is necessary for the Town to identify unencumbered property to be the subject Property under the Lease Agreement. It is anticipated that the Town will identify the new Community Recreation Center, the Police Building, the Corporation Yard and the Transit Center as the Property under the Lease Agreement. Since the Police Building and the Corporation Yard are presently encumbered by that certain Lease Agreement, dated as of August 1, 2015 (the “2015 Lease”), by and between the Corporation and the Town, assigned to Compass Mortgage Corporation, an Alabama corporation, or its successor (the “Assignee”), it is necessary for the Town to pay or otherwise provide for the payment of the 2015 Lease to unencumber such assets. The Council hereby authorizes and approves of the payment or provision for payment of the 2015 Lease with available funds of the Town. If the Assignee approves the payment of the 2015 Lease on or prior to the closing date of the Certificates, no additional documentation will be required. If the Assignee does not approve the payment of the 2015 Lease prior to the schedule optional prepayment date of August 5, 2025, an escrow will need to be established. In such case, the Council hereby authorizes the preparation of a required escrow agreement, and any Designated Officer is hereby authorized and directed to execute said document, with such changes, insertions and omissions as may be approved by such official.

Section 8. The Mayor, the Vice Mayor, the Town Manager, the Finance Director, the Town Clerk and any and all other officers of the Town are hereby authorized and directed, for and in the name and on behalf of the Town, to do any and all things and take any and all actions, including execution and delivery of any and all assignments, certificates, requisitions, agreements, notices, consents, instruments of conveyance, warrants and other documents, which they, or any of them, may deem necessary or advisable in order to consummate the delivery of the Certificates and the consummation of the transactions as described herein.

Section 9. This Resolution shall take effect from and after the date of its passage and adoption.

Section 10. The Town Clerk shall certify to the adoption of this Resolution and provide for appropriate distribution thereof.

APPROVED AND ADOPTED THIS 21st day of February 2024.

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-4-
_____________________________
__
BILL SAUSER, Mayor
ATTEST:
________________________________
JAMIE GRAY, Town Clerk

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-5-
* * * * * * * * * * * *
I, the undersigned hereby certify that the foregoing Resolution was duly and regularly adopted and passed by the Town Council of the Town of Mammoth Lakes in a regular meeting assembled on the 21st day of February, 2024, by the following vote to wit:

YAES:

NOES:

ABSENT:

ABSTENTIONS:

Town Clerk

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Exhibit A

EXHIBIT A
GOVERNMENT CODE SECTION 5852.1 DISCLOSURE
The following information consists of estimates that have been provided by the Town’s municipal advisor and underwriter which has been represented to have been provided in good faith:
(A) True Interest Cost of the Certificates: 4.11%
(B) Finance Charges:

Costs of issuance: $688,918
Underwriter’s discount: 225,040
Total $913,958
(C) Net Proceeds to be Received: $29,500,000
(net of finance charges)
(D) Total Payment Amount through Maturity: $51,031,412
The foregoing estimates constitute good faith estimates only.

The principal amount of the Certificates, the true interest cost of the Certificates, 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 Certificates being different than the date assumed for purposes of such estimates, (b) the actual principal amount of Certificates sold being different from the estimated amount used for purposes of such estimates, (c) the actual amortization of the Certificates being different than the amortization assumed for purposes of such estimates, (d) the actual market interest rates at the time of sale of the Certificates being different than those estimated for purposes of such estimates, (e) other market conditions, or (f) alterations in the Town’s financing plan, or a combination of such factors. The actual date of sale of the Certificates and the actual principal amount of Certificates sold will be determined by the Town based on the timing of the need for proceeds of the Certificates and other factors. The actual interest rates with respect to the Certificates will depend on market interest rates at the time of sale thereof. The actual amortization of the Certificates 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 Town.

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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 shall this Preliminary Official Statement constitute an offer to sell or a solicitation of an offer to buy nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such jurisdiction.

PRELIMINARY OFFICIAL STATEMENT DATED JUNE 7, 2024
NEW ISSUE—FULL BOOK-ENTRY RATINGS:

S&P: “AA” (___-Insured)
S&P: “___” (Underlying)
(See “RATINGS” herein)
In the opinion of Quint & Thimmig LLP, Larkspur, California, Special Counsel, subject to compliance by the Town with certain covenants, under present law, interest with respect to the Certificates is excludable from gross income of the owners thereof for federal income tax purposes and is not included as an item of tax preference in computing the federal alternative minimum tax for individuals under the Internal Revenue Code of 1986, as amended. Interest with respect to the Certificates may affect the corporate alternative minimum tax for certain corporations. In addition, in the opinion of Special Counsel, interest with respect to the Certificates is exempt from personal income taxation imposed by the State of California. See “TAX MATTERS” herein. $__________ *

CERTIFICATES OF PARTICIPATION
(2024 Capital Improvement Financing Project)
Evidencing the Direct, Undivided Fractional Interests
of the Owners Thereof in Lease Payments to be Made by the TOWN OF MAMMOTH LAKES (Mono County, California),
As the Rental for Certain Property Pursuant to a Lease Agreement with the Mammoth Lakes Municipal Service Corporation
Dated: Date of Delivery Due: June 1, as shown on the inside cover The $_________* Certificates of Participation (2024 Capital Improvement Financing Project) (the “Certificates”), are being sold to provide funds, together with other available moneys, to (a) finance the costs of (i) constructing and equipping a new Town Hall facility and (ii) acquiring certain land and improvements, and (b) pay costs incurred in connection with the execution, delivery and sale of the Certificates, including purchasing a municipal bond insurance policy for the Certificates and a reserve fund municipal bond insurance policy in lieu of cash funding a reserve fund.

The Certificates will evidence direct, undivided fractional interests of the owners thereof in Lease Payments (as defined herein) to be made by the Town of Mammoth Lakes (the “Town’) to the Mammoth Lakes Municipal Service Corporation (the “Corporation”) for the use and occupancy of certain existing property of the Town under and pursuant to a Lease Agreement, dated as of July 1, 2024, by and between the Corporation and the Town (the “Lease Agreement”). See “THE PROPERTY” hereon. The Corporation will assign its right to receive Lease Payments from the Town under the Lease Agreement and its right to enforce payment of the Lease Payments when due or otherwise protect its interest in the event of a default by the Town thereunder to U.S. Bank Trust Company, National Association, San Francisco, California, as trustee (the “Trustee”), for the benefit of the registered owners of the Certificates.

The Certificates will be executed and delivered in book-entry form only, and will be initially registered in the name of Cede & Co. as nominee of The Depository Trust Company, New York, New York (referred to herein as “DTC”). Purchasers of the Certificates (the “Beneficial Owners”) will not receive physical certificates representing their interest in the Certificates. Interest with respect to the Certificates accrues from their date of delivery and is payable semiannually by check mailed on each June 1 and December 1, commencing December 1, 2024. The Certificates may be executed and delivered in denominations of $5,000 or any integral multiple thereof. Payments of principal and interest with respect to the Certificates will be paid by the Trustee to DTC for subsequent disbursement to DTC Participants who will remit such payments to the Beneficial Owners of the Certificates. See “THE CERTIFICATES—Book-Entry-Only System.” The Certificates are subject to optional and mandatory redemption, as described herein. See “THE CERTIFICATES—Redemption.”

NEITHER THE CERTIFICATES NOR THE OBLIGATION OF THE TOWN TO MAKE LEASE PAYMENTS UNDER THE LEASE AGREEMENT

CONSTITUTES A DEBT OR INDEBTEDNESS OF THE TOWN OR THE STATE OF CALIFORNIA OR ANY POLITICAL SUBDIVISION THEREOF

WITHIN THE MEANING OF ANY CONSTITUTIONAL OR STATUTORY DEBT LIMITATIONS OR RESTRICTION OR AN OBLIGATION FOR WHICH

THE TOWN IS OBLIGATED TO LEVY OR PLEDGE ANY FORM OF TAXATION OR FOR WHICH THE TOWN HAS LEVIED OR PLEDGED ANY FORM OF TAXATION.

MATURITY SCHEDULE

SEE THE INSIDE COVER
The cover page contains certain information for general reference only. It is not a summary of all the provisions of the Certificates. Investors must read the entire Official Statement to obtain information essential to the making of an informed investment decision. See “RISK FACTORS” herein for a discussion of special risk factors that should be considered, in addition to the other matters set forth herein, in evaluating the investment quality of the Certificates.

The scheduled payment of principal and interest with respect to all or a portion of the Certificates when due will be guaranteed under a municipal bond insurance policy to be issued concurrently with the delivery of the Certificates by __________. See “MUNICIPAL BOND INSURANCE” herein. [INSURER LOGO]
The Certificates will be offered when, as and if delivered and received by the Underwriter subject to approval by Quint & Thimmig LLP, Larkspur, California, as Special Counsel.

Certain matters will be passed upon for the Town by Quint & Thimmig LLP, Larkspur, California, as Disclosure Counsel, and by the Town Attorney, and for the Underwriter by Kutak Rock LLP. Irvine, California. It is anticipated that the Certificates will be available for delivery to DTC in New York, New York, on or about July 2, 2024.

Piper Sandler & Co.

Dated: June __, 2024
*Preliminary, subject to change.

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$_________*

CERTIFICATES OF PARTICIPATION
(2024 Capital Improvement Financing Project)
Evidencing the Direct, Undivided Fractional Interests
of the Owners Thereof in Lease Payments to be Made by the

TOWN OF MAMMOTH LAKES
(Mono County, California),
As the Rental for Certain Property Pursuant to a Lease Agreement with the Mammoth Lakes Municipal Service Corporation
MATURITY SCHEDULE*
$__________ Serial Certificates
CUSIP Prefix: _______†
Maturity Principal Interest CUSIP
(June 1) Amount Rate Yield Suffix†
$_____ _____% Term Certificates maturing June 1, _____; Price: _____% to Yield _____%—CUSIP: _____ _____† $_____ _____% Term Certificates maturing June 1, _____; Price: _____% to Yield _____%—CUSIP: _____ _____† *Preliminary, subject to change.
†Copyright 2024, American Bankers Association. CUSIP® is a registered trademark of the American Bankers Association. CUSIP data herein is provided by CUSIP Global Services, managed by FactSet Research Systems Inc. on behalf of the American Bankers Association. This data is not intended to create a database and does not serve in any way as a substitute for CUSIP Global Services. CUSIP numbers have been assigned by an independent company not affiliated with the Town and are included solely for the convenience of the registered owners of the Certificates. Neither the Town nor or the Underwriter is responsible for the selection or uses of these CUSIP numbers and no representation is made as to their correctness on the Certificates or as included herein. The CUSIP number for a specific maturity is subject to being changed after the delivery of the Certificates as a result of various subsequent actions including, but not limited to, a refunding in whole or in part or as a result of the procurement of secondary market portfolio insurance or other similar enhancement by investors that is applicable to all or a portion of certain maturities of the Certificates.

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For purposes of compliance with Rule 15c2-12 of the United States Securities and Exchange Commission, as amended (“Rule 15c2-12”), this Preliminary Official Statement constitutes an “official statement” of the Town with respect to the Certificates that has been deemed “final” by the Town as of its date except for the omission of no more than the information permitted by Rule 15c2-12.

No dealer, broker, salesperson or other person has been authorized to give any information or to make any representation other than those contained herein and, if given or made, such other information or representation must not be relied upon as having been authorized. This Official Statement does not constitute an offer to sell or the solicitation of any offer to buy, nor shall there be any sale of the Certificates by a person in any jurisdiction in which it is unlawful for such person to make an offer, solicitation or sale.

This Official Statement is not to be construed as a contract with the purchasers of the Certificates. Statements contained in this Official Statement which involve estimates, forecasts or matters of opinion, whether or not expressly so described herein, are intended solely as such and are not to be construed as representations of facts.

The information set forth herein has been obtained from the Town and from other sources and is believed to be reliable but is not guaranteed as to accuracy or completeness. The information and expressions of opinions herein are subject to change without notice and neither the delivery of this Official Statement nor any sale made hereunder shall, under any circumstances, create any implication that there has been no change in the affairs of the Town since the date hereof. This Official Statement is submitted in connection with the sale of the Certificates referred to herein and may not be reproduced or used, in whole or in part, for any other purpose, unless authorized in writing by the Town. All summaries of the Certificates, the Lease Agreement, the Trust Agreement, the Assignment Agreement, the Site and Facility Lease (each as defined herein), or other documents, are made subject to the provisions of such documents and do not purport to be complete statements of any or all of such provisions. Reference is hereby made to such documents on file with the Director of Finance for further information. See “INTRODUCTION—Other Information.”
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.

IN CONNECTION WITH THIS OFFERING, THE UNDERWRITER MAY OVER-ALLOT OR EFFECT

TRANSACTIONS WHICH STABILIZE OR MAINTAIN THE MARKET PRICE OF THE CERTIFICATES AT A LEVEL ABOVE THAT WHICH MIGHT OTHERWISE PREVAIL IN THE OPEN MARKET. SUCH STABILIZING, IF COMMENCED, MAY BE DISCONTINUED AT ANY TIME. THE UNDERWRITER MAY OFFER AND SELL THE

CERTIFICATES TO CERTAIN DEALERS, INSTITUTIONAL INVESTORS AND OTHERS AT PRICES LOWER THAN

THE PUBLIC OFFERING PRICES STATED ON THE INSIDE COVER PAGE HEREOF AND SUCH PUBLIC OFFERING PRICES MAY BE CHANGED FROM TIME TO TIME BY THE UNDERWRITER.

Certain statements included or incorporated by reference in this Official Statement constitute “forward-looking statements.” Such statements are generally identifiable by the terminology used such as “plan,” “expect,” “estimate,” “budget” or other similar words. The achievement of certain results or other expectations contained in such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause actual results, performance or achievements described to be materially different from any future results, performance or achievements expressed or implied by such forwardlooking statements. No assurance is given that actual results will meet the Town’s forecasts in any way. Neither the Town nor the Corporation is obligated to issue any updates or revisions to the forward-looking statements if or when its expectations, or events, conditions or circumstances on which such statements are based occur or do not occur.

The execution, sale and delivery of the Certificates has not been registered under the Securities Act of 1933 or the Securities Exchange Act of 1934, both as amended, in reliance upon exemptions provided thereunder by Sections 3(a)(2) and 3(a)(12), respectively, for the issuance and sale of municipal securities. ___________ (the “Municipal Bond Insurer”) makes no representation regarding the Certificates or the advisability of investing in the Certificates. In addition, the Municipal Bond Insurer has not independently verified, makes no representation regarding, and does not accept any responsibility for the accuracy or completeness of this Official Statement or any information or disclosure contained herein, or omitted herefrom, other than with respect to the accuracy of the information regarding the Municipal Bond Insurer supplied by the Municipal Bond Insurer and presented under the heading “MUNICIPAL BOND INSURANCE” and “APPENDIX H—SPECIMEN MUNICIPAL BOND INSURANCE POLICY.” The Town maintains a website. Unless specifically indicated otherwise, the information presented on such website is not incorporated by reference as part of this Official Statement and should not be relied upon in making investment decisions with respect to the Certificates.

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TABLE OF CONTENTS
INTRODUCTION ....................................................................................... 1 General................................................................................................... 1 The Town .............................................................................................. 1 Purpose .................................................................................................. 2 Source of Payment for the Certificates................................................... 2 Municipal Bond Insurance Policies; Reserve Policy............................... 3 Redemption............................................................................................ 3 Continuing Disclosure............................................................................ 3 Summaries of Documents...................................................................... 3 Other Information .................................................................................. 4 ESTIMATED SOURCES AND USES OF FUNDS.................................... 4 THE PROJECT............................................................................................. 5 THE PROPERTY ......................................................................................... 5 DEBT SERVICE SCHEDULE..................................................................... 7 THE CERTIFICATES ................................................................................. 7 General................................................................................................... 7 Redemption............................................................................................ 8 Transfer and Exchange of Certificates................................................. 11 Book-Entry System .............................................................................. 11 SOURCE OF PAYMENT FOR THE CERTIFICATES ........................... 11 General................................................................................................. 11 Lease Payments; Covenant to Appropriate.......................................... 12 Reserve Fund ....................................................................................... 12 Insurance.............................................................................................. 13 Abatement............................................................................................ 13 Eminent Domain.................................................................................. 14 Optional Prepayment ........................................................................... 14 Prepayment from Net Proceeds of Insurance and Condemnation ....... 14 Substitution of Property ....................................................................... 15 Events of Default and Remedies .......................................................... 16 Amendment of Lease Agreement......................................................... 17 MUNICIPAL BOND INSURANCE .......................................................... 17 THE TOWN ............................................................................................... 17 TOWN FINANCIAL INFORMATION.................................................... 18 Financial Statements and Budgetary Process....................................... 18 General Fund Balance Sheet ................................................................ 20 General Fund Revenues, Expenditures, and Changes in Fund Balances ............................................................................................................. 21 General Fund Budget........................................................................... 22 General Fund Transfers....................................................................... 23 Town Financial Management .............................................................. 23 Primary Sources of General Fund Revenues........................................ 25 Transient Occupancy Taxes................................................................. 26 Property Taxes..................................................................................... 30 Teeter Plan........................................................................................... 31 Assessed Value..................................................................................... 32 Sales and Use Taxes............................................................................. 37 Other Sources of General Fund Revenues........................................... 39 No Material Reliance on State Revenues ............................................. 39 OTHER FINANCIAL INFORMATION................................................... 39 Labor Relations .................................................................................... 39 Risk Management................................................................................. 40 Employee Retirement Plans................................................................. 40 Other Post-Employment Benefits ........................................................ 44 Debt Obligations.................................................................................. 45 Overlapping Debt................................................................................. 46 INVESTMENT OF TOWN FUNDS........................................................ 47 THE CORPORATION............................................................................... 48 STATE BUDGET INFORMATION......................................................... 48 2023-24 State Budget........................................................................... 49 2024-25 Proposed State Budget........................................................... 50 Future State Budgets ........................................................................... 51

CONSTITUTIONAL AND STATUTORY LIMITATIONS ON TAXES,
REVENUES AND APPROPRIATIONS ................................................... 51 Article XIIIA of the California Constitution ........................................ 51 Article XIIIB of the California Constitution......................................... 53 Articles XIIIC and XIIID (Proposition 218) of the California Constitution......................................................................................... 54 Proposition 1A of 2004 ........................................................................ 56 Proposition 22...................................................................................... 57 Proposition 26...................................................................................... 58 Proposition 19...................................................................................... 59 Taxpayer Protection and Government Accountability Act Initiative... 59 Future Initiatives ................................................................................. 59 RISK FACTORS......................................................................................... 60 Lease Payments Are Not Debt............................................................. 60 Valid and Binding Covenant to Budget and Appropriate ..................... 60 Additional Obligations of the Town..................................................... 61 Cash Management ............................................................................... 61 Abatement ........................................................................................... 61 No Acceleration Upon Default ............................................................ 61 Risk of Uninsured Loss........................................................................ 62 Eminent Domain.................................................................................. 62 Concentration of Revenue Sources...................................................... 62 Dependence on Tourism Industry ....................................................... 63 Public Health Emergencies.................................................................. 64 Hazardous Substances ......................................................................... 64 Natural Calamities............................................................................... 64 Potential Impact of State Financial Condition on the Town................ 67 Pension Benefit Liability ...................................................................... 68 Risks Related to Cyber Security........................................................... 68 Bankruptcy........................................................................................... 69 Early Redemption Risk ........................................................................ 70 Limitations on Remedies ..................................................................... 70 Secondary Market Risk ........................................................................ 71 Changes in Law.................................................................................... 71 Risks Relating to the Municipal Bond Insurance Policy....................... 71 ABSENCE OF LITIGATION.................................................................... 72 CONTINUING DISCLOSURE................................................................. 72 MUNICIPAL ADVISOR............................................................................ 72 LEGAL MATTERS.................................................................................... 73 TAX MATTERS ........................................................................................ 73 UNDERWRITING..................................................................................... 75 RATINGS ................................................................................................... 76 FINANCIAL STATEMENTS................................................................... 76 ADDITIONAL INFORMATION.............................................................. 76

APPENDIX A GENERAL, ECONOMIC AND DEMOGRAPHIC INFORMATION RELATING TO THE TOWN AND THE COUNTY APPENDIX B ANNUAL COMPREHENSIVE FINANCIAL REPORT OF THE TOWN FOR THE FISCAL YEAR ENDED JUNE 30, 2023

APPENDIX C INVESTMENT POLICY OF THE TOWN

APPENDIX D FORM OF SPECIAL COUNSEL OPINION

APPENDIX E SUMMARY OF THE PRINCIPAL LEGAL DOCUMENTS
APPENDIX F DTC’S BOOK-ENTRY ONLY SYSTEM

APPENDIX G FORM OF CONTINUING DISCLOSURE CERTIFICATE
APPENDIX H: SPECIMEN MUNICIPAL BOND INSURANCE POLICY

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TOWN OF MAMMOTH LAKES
437 Old Mammoth Road, Suite 230
Mammoth Lakes, CA 93546
(760) 965-3600
https://www.townofmammothlakes.ca.gov/

TOWN COUNCIL MEMBERS
Bill Sauser, Mayor
Chris Bubser, Mayor Pro Tem
Sarah Rea, Councilmember
Amanda Rice, Councilmember
John Wentworth, Councilmember

TOWN OFFICIALS
Daniel C. Holler, Town Manager
Rob Patterson, Administrative Services/Finance Director Haislip Hayes, Public Works Director
Jamie Gray, Town Clerk
Andrew Morris, Esq., Town Attorney

PROFESSIONAL SERVICES
JNA Consulting Group LLC
Boulder City, Nevada
Municipal Advisor
Quint & Thimmig LLP
Larkspur, California
Special Counsel and Disclosure Counsel
U.S. Bank Trust Company, National Association
Portland, Oregon
Trustee

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$_______*

CERTIFICATES OF PARTICIPATION
(2024 Capital Improvement Financing Project)
Evidencing the Direct, Undivided Fractional Interests
of the Owners Thereof in Lease Payments to be Made by the

TOWN OF MAMMOTH LAKES
(Mono County, California),
As the Rental for Certain Property Pursuant to a Lease Agreement with the Mammoth Lakes Municipal Service Corporation

INTRODUCTION
This introduction does not purport to be complete, and reference is made to the body of this Official Statement, appendices and the documents referred to herein for more complete information with respect to matters concerning the captioned Certificates. Potential investors are encouraged to read this entire Official Statement. Capitalized terms used and not defined in this Introduction shall have the meanings assigned to them elsewhere in this Official Statement and in APPENDIX E—SUMMARY OF THE PRINCIPAL LEGAL DOCUMENTS—DEFINITIONS.

General
This Official Statement, including the cover page, the inside cover page and appendices hereto, is provided to furnish information in connection with the execution, sale and delivery of $_________* Town of Mammoth Lakes Certificates of Participation (2024 Capital Improvement Financing Project) (the “Certificates”). The Certificates are being executed and delivered pursuant to a Trust Agreement, dated as of July 1, 2024 (the “Trust Agreement”), by and among the Town of Mammoth Lakes, California (the “Town”), the Mammoth Lakes Municipal Service Corporation (the “Corporation”) and U.S. Bank Trust Company, National Association, as trustee (the “Trustee”).

The Town
The Town is a general law city that was initially incorporated on August 20, 1984. The Town is located in Mono County, California (the “County”), and is the County’s only incorporated city. The Town is located in California’s Eastern Sierra Range approximately 100 mi (160 km) south of the Nevada state line and 50 minutes by car from the Eastern Gate of Yosemite National Park. The Town is home to approximately 7,300 residents. The Town provides municipal services to its citizens including police, public works, airport facilities, community development, parks and recreation and general administrative support.

The Town’s economy is primarily tourism-based. The Town is located immediately to the east of Mammoth Mountain, home to the Mammoth Mountain Ski Area, a 25-lift ski resort owned and operated by the Alterra Mountain Company (the “Ski Area”). The Ski Area is frequented during the winter season by skiers and snowboarders from southern California as the Town is an approximately five-hour drive from Los Angeles via U.S. 395. The Ski Area is much closer to Los Angeles County and Orange County than the Lake Tahoe area resorts. The Town also has significant tourism in the summer season from people who visit the Town and the Ski Area to camp, hike, mountain bike and fish. * Preliminary, subject to change.

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The Town operates under a council-manager form of government. The five-member Town Council (the “Town Council”) is elected on an at large basis by the Town’s voters. Town Council members serve four-year terms, with two members elected every two years. The Mayor and Mayor Pro Tem are elected by the Town Council Members to one-year terms. The Town Council appoints the Town Manager and the Town Attorney. The Town Manager is responsible for directing, coordinating and carrying out Town Council policies.

For additional information about the Town, see “THE TOWN,” “TOWN FINANCIAL INFORMATION,” APPENDIX A—GENERAL, ECONOMIC AND DEMOGRAPHIC INFORMATION RELATING TO THE TOWN AND THE COUNTY and APPENDIX B—ANNUAL COMPREHENSIVE FINANCIAL REPORT OF THE TOWN FOR THE YEAR ENDED JUNE 30, 2023.

Purpose
The proceeds of the Certificates will provide funds to (a) finance the costs of (i) constructing and equipping a new Town Hall facility and (ii) acquiring certain land and improvements, and (b) pay costs incurred in connection with the execution, delivery and sale of the Certificates, including purchasing a municipal bond insurance policy for the Certificates and a reserve fund municipal bond insurance policy in lieu of cash funding a reserve fund. See “THE PROJECT.” The Town will lease certain existing property and the improvements thereon (the “Property”) to the Corporation pursuant to a Site and Facility Lease, dated as of July 1, 2024 (the “Site and Facility Lease”). The Corporation will lease the Property back to the Town pursuant to a Lease Agreement, dated as of July 1, 2024 (the “Lease Agreement”). The Certificates are payable solely from and secured by the lease payments (the “Lease Payments”) to be made by the Town to the Corporation pursuant to the Lease Agreement. See “SOURCE OF PAYMENT FOR THE CERTIFICATES” and “THE PROPERTY.” Interest with respect to the Certificates is payable on June 1 and December 1 of each year, commencing December 1, 2024. The Certificates will mature in the amounts and on the dates and be payable at the interest rates shown on the inside cover of this Official Statement. See “THE CERTIFICATES.”
The Certificates will be delivered in fully registered form only, in the name of Cede & Co., as nominee of the Depository Trust Company, New York, New York (“DTC”). DTC will act as the depository for the Certificates and all payments due with respect to the Certificates will be made to Cede & Co., DTC’s nominee. Ownership interests in the Certificates may be purchased only in book-entry form.

See “THE CERTIFICATES—Book-Entry System” and APPENDIX F—DTC’S BOOK-ENTRY ONLY SYSTEM.

Source of Payment for the Certificates
The Certificates represent direct, undivided interests of the Owners thereof in the Lease Payments to be paid by the Town to the Corporation pursuant to the Lease Agreement. The Lease Payments are payable by the Town from its General Fund for the right to use and possess the Property. The Lease Payments are subject to abatement during any period in which by reason of damage or destruction there is substantial interference with the use and occupancy by the Town of the Property or any portion thereof.

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The Town will covenant under the Lease Agreement to take such action as necessary to include the Lease Payments in its annual budget and to make all necessary appropriations therefor (subject to abatement under certain circumstances described in the Lease Agreement). Pursuant to an Assignment Agreement, dated as of July 1, 2024 (the “Assignment Agreement”), by and between the Corporation and the Trustee, the Corporation will assign to the Trustee, for the benefit of the Owners of the Certificates, certain of its rights under the Lease Agreement, including its right to receive Lease Payments from the Town. See “SOURCE OF PAYMENT FOR THE CERTIFICATES—Lease Payments; Covenant to Appropriate and “RISK FACTORS.”

NEITHER THE CERTIFICATES NOR THE OBLIGATION OF THE TOWN TO MAKE

LEASE PAYMENTS UNDER THE LEASE AGREEMENT CONSTITUTES A DEBT OR INDEBTEDNESS OF THE TOWN OR THE STATE OF CALIFORNIA (THE “STATE”) OR ANY

POLITICAL SUBDIVISION THEREOF WITHIN THE MEANING OF ANY CONSTITUTIONAL

OR STATUTORY DEBT LIMITATIONS OR RESTRICTION OR AN OBLIGATION FOR WHICH

THE TOWN IS OBLIGATED TO LEVY OR PLEDGE ANY FORM OF TAXATION OR FOR WHICH THE TOWN HAS LEVIED OR PLEDGED ANY FORM OF TAXATION.

Municipal Bond Insurance Policies; Reserve Policy
The scheduled payment of the principal and interest with respect to all or a portion of the Certificates when due will be guaranteed under a municipal bond insurance policy (the “Municipal Bond Insurance Policy”) to be issued by ______________ (the “Municipal Bond Insurer”) simultaneously with the delivery of the Certificates. See “MUNICIPAL BOND INSURANCE.” In addition, the Municipal Bond Insurer has made a commitment to issue a municipal bond insurance policy for the Reserve Fund established for the Certificates (the “Reserve Policy”) in an amount equal to the Reserve Requirement. See “SOURCES OF PAYMENT FOR THE CERTIFICATES— Reserve Fund.”
Redemption
The Certificates are subject to optional and mandatory redemption. See “THE CERTIFICATES—Redemption.”
Continuing Disclosure
The Town will covenant in a continuing disclosure certificate to prepare and deliver annual reports to the Municipal Securities Rulemaking Board (the “MSRB”) through the MSRB’s Electronic Municipal Market Access system. See “CONTINUING DISCLOSURE” and APPENDIX G—FORM OF CONTINUING DISCLOSURE CERTIFICATE.

Summaries of Documents
This Official Statement contains descriptions of the Certificates, the Trust Agreement, the Site and Facility Lease, the Lease Agreement, the Assignment Agreement and various other agreements and documents. The descriptions and summaries of documents herein do not purport to be comprehensive or definitive and reference is made to each such document for the complete details of all terms and conditions.

All statements herein are qualified in their entirety by reference to each such document and, with respect

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to certain rights and remedies, to laws and principles of equity relating to or affecting creditors’ rights generally.

Other Information
This Official Statement speaks only as of its date and the information contained herein is subject to change. Copies of documents referred to herein and information concerning the Certificates are available for inspection at the office of the Town Clerk, Town of Mammoth Lakes, 437 Old Mammoth Road, Suite 230, Mammoth Lakes, CA 93546, Telephone: (760) 965-3600. The Town may impose a charge for copying, mailing and handling.

This Official Statement is not to be construed as a contract with the purchasers of the Certificates.

Statements contained in this Official Statement which involve estimates, forecasts or matters of opinion, whether or not expressly so described herein, are intended solely as such and are not to be construed as representations of fact. The summaries and references to documents, statutes and constitutional provisions referred to herein do not purport to be comprehensive or definitive and are qualified in their entireties by reference to each of such documents, statutes and constitutional provisions.

The information set forth herein has been obtained from sources which are believed to be reliable.

The information and expressions of opinions herein are subject to change without notice and neither delivery of this Official Statement nor any sale made hereunder shall, under any circumstances, create any implication that there has been no change in the affairs of the Town since the date hereof. This Official Statement is submitted in connection with the sale of the Certificates referred to herein and may not be reproduced or used, in whole or in part, for any other purpose.

ESTIMATED SOURCES AND USES OF FUNDS
The following table shows the estimated sources and uses of the proceeds from the sale of the Certificates and other moneys:

Sources
Par Amount of the Certificates
Plus: Original Issue Premium
Total Sources
Uses
Deposit to the Project Fund (1)
Deliver Costs(2)
Total Uses
(1) Amounts deposited in the Project Fund will be used to finance a portion of the cost of the Project. See “THE PROJECT.” (2) Delivery Costs include the Underwriter’s discount, fees and expenses of the municipal advisor, special counsel, disclosure counsel and the Trustee, printing expenses, rating fees, title insurance, the premiums for the Municipal Bond Insurance Policy and the Reserve Policy and other costs.

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THE PROJECT
A portion of the proceeds of the Certificates will be deposited into a project fund and applied to finance the Project which includes but is not limited to:

New Town Hall. The Town Office Building will be located near the Police Station, County Administrative building, Courts, and Mammoth Hospital as part of an overall planned Civic Center. The stie to be occupied by the new Town Offices, parking and associated sidewalks and landscaping is approximately 1.3 acres of an approximate 2.36 acers site parcel owned by the Town. The new Town Office / Town Hall will include staff offices, Council Chambers, open areas to accommodate public use as allowed and all supporting spaces. The site will include construction of approximately 50 additional parking spaces.

This facility will replace existing leased space currently being utilized. Construction is anticipated to start in July 2024. Occupancy of the building is planned prior to October 1, 2026.

Land Acquisition. The land purchase is approximately 8 acres. The site currently has an approximately 7,000 square foot building known as Edison Hall, which has an 90+ seat theater, meeting rooms, kitchen, and offices. The Town currently leases the facility from the Mammoth Lakes Foundation (“MLF”) to support the continued theater operation. The facility will be remodeled to support a planned 250+ seat new performing arts auditorium, which is being done with private funding. Work expected to take 4-6 moths. The seating will be reduced to 50 or less, with expanded restrooms, green room, storage, ticket office, keeping meeting space and administrative offices. As part of the purchase of the land the Town will have the right to purchase the building for a nominal amount. The site has an existing 45+/- space parking lot. The new theater is being funded by the Town, use of a bond issued by the Kern County Community College District – Cerro Coso Eastern Sierra Campus – Mammoth Campus, and private donors. A majority of the funds paid to purchase the property will also be used to fund the new theater – Total cost estimated at $17,500,000, with $11,000,000-$12,000,000 currently committed. A new 40 space parking lot, outdoor restroom and dog park are under construction by the Town. These are located on the other side of the parcel from the current building. The new building will be owned and operated by the Town. The Town is preparing to go out to bid on a child care facility located generally adjacent to the current parking area.

THE PROPERTY
Pursuant to the Site and Facility Lease, the Town will lease the Property to the Corporation.

Pursuant to the Lease Agreement, the Corporation will, in turn, lease the Property back to the Town. See APPENDIX E—SUMMARY OF THE PRINCIPAL LEGAL DOCUMENTS—Site and Facility Lease and APPENDIX E—SUMMARY OF THE PRINCIPAL LEGAL DOCUMENTS—Lease Agreement.

The Property consists of:

Community Recreation Center. (686 Old Mammoth Road, Mammoth Lakes). The Community Recreation Center is a 40,300 square foot Sprung Performance Arena located on the southwest corner of the Mammoth Creek Park site, completed in 2023. The approximate 56-foot tall and 140-foot wide facility will provide year-round programming for the community and visitors. The 40, facility includes locker rooms, public/community space, seating, additional “use areas” (recreational activities, food/beverage sales, rentals, back of house, etc.) restrooms, and administrative areas.

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Police Station. (58 Thompsons Way, Mammoth Lakes). The Police Station is a 5,790 square foot facility, completed in 2017, located on a 2.36 acre site, that provides for Town Police services – sworn and non-sworn activities. The facility includes an armory, a covered entrance, reception area, a sally port, holding cells, a training room and a locker room.

Corporation Yard. (299 Commerce Drive, Mammoth Lakes). The Corporation Yard includes a building with asphalt paved maintenance yard and two support buildings. The yard is served by an access road and has been improved for drainage. It is also equipped with sewer, water, power, telephone, television and propane gas, as well as a fueling system including card reader, pumps and tanks.

Transit Center. (210 Commerce Drive, Mammoth Lakes).The Transit Center is jointly operated by the Town and Eastern Sierra Transit Authority (ESTA). The facility is partially leased by ESTA for administrative staff for dispatch, meetings and general office work. ESTA is a joint powers agency that is supported by the Town for transit services. Drivers and operators use the facility as the main transit yard and begin and end their routes at this facility. Drivers complete their prechecks and some minor maintenance such as installing chains and deicing at the facility. The Town uses a portion of the building to support the Parks and Recreation Department operations. Trackless snow blowers and other seasonal equipment and materials are stored at this facility. The Town maintains offices for parks staff in the conditioned portion of the building.

The current insured value of the Property is approximately $______.

For a description of certain terms of the Lease Agreement see “SOURCE OF PAYMENT FOR THE CERTIFICATES” and APPENDIX E—SUMMARY OF THE PRINCIPAL LEGAL DOCUMENTS—LEASE AGREEMENT.

Pursuant to the Lease Agreement, the Town may substitute the Property, in whole or in part, with other properties, upon the satisfaction of certain conditions. For more information regarding the substitution of property see “SOURCE OF PAYMENT FOR THE CERTIFICATES—Substitution or Removal of Property” and APPENDIX E—SUMMARY OF THE PRINCIPAL LEGAL DOCUMENTS—LEASE AGREEMENT.

The town has not granted any security interest in the Property for the benefit of the Certificates and there is no remedy of foreclosure on the Property upon the occurrence of an Event of Default under the Lease Agreement. For a discussion of remedies upon an Event of Default under the Lease Agreement, see “RISK FACTORS—Limitations on Remedies.”

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DEBT SERVICE SCHEDULE
The following table shows the scheduled annual debt service for the Certificates:

Principal
Payment
Date
(June 1) Principal* (1) Interest (2) Total
Total
*Preliminary, subject to change.
(1) Principal payments with respect to the Certificates on each June 1 are derived from Lease Payments made by the Town on the preceding May 15. Includes sinking fund payments.
(2) Interest payments with respect to the Certificates on each June 1 and December 1 are derived from Lease Payments made by the Town on the preceding May 15 and November 15, respectively.

THE CERTIFICATES
General
The Certificates will be executed and delivered in the aggregate principal amount and will mature on the dates and interest with respect thereto will be payable at the rates per annum as set forth on the cover page of this Official Statement. The Certificates will be delivered in the form of fully registered Certificates without coupons in the denomination of $5,000 or any integral multiple thereof. Interest with respect to the Certificates will be calculated on the basis of a 360-day year of twelve 30-day months and will be payable on June 1 and December 1 of each year, commencing December 1, 2024 (each an “Interest Payment Date”),

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until maturity or earlier redemption thereof. The Certificates will be initially executed, delivered and registered in the name of “Cede & Co.” as nominee of DTC and will be evidenced by one Certificate maturing on each of the maturity dates in a denomination corresponding to the total principal therein designated to mature on such date. See “THE CERTIFICATES—Book-Entry System” and APPENDIX F—DTC’S BOOK-ENTRY ONLY SYSTEM.

Interest with respect to the Certificates will be payable from the Interest Payment Date next preceding the date of execution thereof, unless: (i) it is executed as of an Interest Payment Date, in which event interest with respect thereto shall be payable from such Interest Payment Date; or (ii) it is executed after a Record Date (i.e., the close of business on the 15th day of the month preceding each Interest Payment Date, whether or not such 15th day is a Business Day) and before the following Interest Payment Date, in which event interest with respect thereto shall be payable from such Interest Payment Date; or (iii) it is executed on or before November 15, 2024, in which event interest with respect thereto will be payable from its dated date; provided, however, that if, as of the date of execution of any Certificate, interest is in default with respect to any Outstanding Certificates, interest represented by such Certificate shall be payable from the Interest Payment Date to which interest has previously been paid or made available for payment with respect to the Outstanding Certificates. Payment of defaulted interest shall be paid by check mailed to the Owners as of a special record date to be fixed by the Trustee in its sole discretion, notice of which shall be given to the Owners not less than ten (10) days prior to such special record date.

Payment of interest due with respect to any Certificate on any Interest Payment Date will be made to the person appearing on the Registration Books as the Owner thereof as of the Record Date immediately preceding such Interest Payment Date, such interest to be paid by check mailed on the Interest Payment Date by first class mail to such Owner at his or her address as it appears on the Registration Books as of such Record Date or, upon written request filed with the Trustee prior to the Record Date by an Owner of at least $1,000,000 in aggregate principal amount of Certificates, by wire transfer in immediately available funds to an account in the United States designated by such Owner in such written request. Any such written request shall remain in effect until rescinded in writing by the Owner. The principal and redemption price with respect to the Certificates at maturity or upon prior redemption shall be payable by check denominated in lawful money of the United States of America upon surrender of the Certificates at the Principal Corporate Trust Office.

Redemption
Optional Redemption. The Certificates maturing on or before June 1, ____, are not subject to optional redemption. Certificates maturing on and after June 1, ____, are subject to redemption prior to their respective stated maturity dates, from the proceeds of optional prepayments of Lease Payments made by the Town pursuant to the Lease Agreement, in whole or in part, on any date on or after June 1, ____, at a redemption price equal to the principal amount to be redeemed, together with accrued interest to the date fixed for redemption, without a premium, from the proceeds of the optional prepayment of Lease Payments made by the Town pursuant to the Lease Agreement.

Mandatory Sinking Fund Redemption. The Certificates maturing on June 1, ____, are subject to mandatory redemption in part on June 1, ____, and on each June 1 thereafter, to and including June 1, ____, from the principal components of scheduled Lease Payments required to be paid by the Town pursuant to the Lease Agreement with respect to each such redemption date (subject to abatement, as set forth in the Lease Agreement), at a redemption price equal to the principal amount thereof to be redeemed, together with accrued interest to the date fixed for redemption, without premium, as follows:

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Year Principal Amount of
(June 1) Certificates to be Redeemed
†Maturity.

Redemption from Net Proceeds of Insurance and Condemnation. The Certificates are subject to mandatory redemption in whole or in part on any date from the Net Proceeds of an insurance, title insurance, condemnation, or eminent domain award to the extent credited towards the prepayment of the Lease Payments by the Town pursuant to the Lease Agreement, at a redemption price equal to the principal amount thereof to be redeemed, together with accrued interest to the date fixed for redemption, without premium. See “SOURCE OF PAYMENT FOR THE CERTIFICATES—Prepayment from Net Proceeds.”
Selection of Certificates for Redemption. Whenever provision is made for the redemption of Certificates and less than all Outstanding Certificates are called for redemption, the Trustee shall select Certificates for redemption in any order of maturity selected by the Town (and if not selected by the Town, pro rata among maturities) and by lot within a maturity. The Trustee shall promptly notify the Town and the Corporation in writing of the Certificates so selected for redemption. Upon the occurrence of a redemption in part, the maturities to be redeemed shall be subject to the approval of the Municipal Bond Insurer.

Notice of Redemption. The Town shall be required to give the Trustee written notice of its intention to redeem Certificates at least thirty (30) days prior to the date fixed for redemption unless the Trustee otherwise agrees to a shorter period for such notice. Unless waived in writing by any Owner of a Certificate to be redeemed, notice of any such redemption shall be given by the Trustee on behalf and at the expense of the Town, by mailing a copy of a redemption notice by first class mail, postage prepaid, at least twenty (20) days and not more than sixty (60) days prior to the date fixed for redemption to such Owner of the Certificate or Certificates to be redeemed at the address shown on the Registration Books maintained by the Trustee or at such other address as is furnished in writing by such Owner to the Trustee; provided, however, that neither the failure to receive such notice nor any defect in any notice shall affect the sufficiency of the proceedings for the redemption of the Certificates.

All notices of redemption shall be dated and shall state: (i) the redemption date; (ii) the redemption price; (iii) if less than all Outstanding Certificates of a maturity are to be redeemed, the Certificate numbers (and, in the case of partial redemption, the respective principal amounts) of the Certificates to be redeemed; (iv) that on the redemption date the redemption price will become due and payable upon each such Certificate or portion thereof called for redemption and that interest with respect thereto shall cease to accrue from and after said date; (v) the place where such Certificates are to be surrendered for payment of the redemption price, which place of payment shall be the Designated Corporate Trust Office; (vi) the CUSIP numbers of all Certificates being redeemed; (vii) the original date of execution and delivery of the Certificates; (viii) the rate of interest payable with respect to each maturity of Certificates being redeemed; (ix) the maturity date of each Certificate being redeemed; and (x) any other descriptive information needed to identify accurately the Certificates being redeemed.

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Notwithstanding the foregoing, in the case of any optional redemption of the Certificates, the notice of redemption shall state that the redemption is conditioned upon receipt by the Trustee of sufficient moneys to redeem the Certificates on the scheduled redemption date, and that the optional redemption shall not occur if, by no later than the scheduled redemption date, sufficient moneys to redeem the Certificates have not been deposited with the Trustee. In the event that the Trustee does not receive sufficient funds by the scheduled optional redemption date to so redeem the Certificates to be optionally redeemed, such event shall not constitute an Event of Default; the Trustee shall send written notice to the Owners, to the Securities Depositories and to one or more of the Information Services to the effect that the redemption did not occur as anticipated, and the Certificates for which notice of optional redemption was given shall remain Outstanding for all purposes of the Trust Agreement.

Notice of redemption having been given as aforesaid and the deposit of the redemption price having been made by the Town, the Certificates or portions of Certificates so to be redeemed shall, on the redemption date, become due and payable at the redemption price therein specified, and from and after such date interest with respect to such Certificates or portions of Certificates shall cease to be payable.

Upon surrender of such Certificates for redemption in accordance with said notice, such Certificates shall be paid by the Trustee at the redemption price. Upon the payment of the redemption price of Certificates being redeemed, each check or other transfer of funds issued for such purpose shall bear the CUSIP number identifying, by issue and maturity, the Certificates being redeemed with the proceeds of such check or other transfer, to the extent possible. Installments of interest due on or prior to the redemption date shall be payable as herein provided for payment of interest. All Certificates which have been redeemed shall be canceled by the Trustee, shall not be redelivered and shall be destroyed pursuant to the Trust Agreement.

In addition to the foregoing notice to the Owners, notice shall also be given by the Trustee, by telecopy or other electronic transmission, registered, certified or overnight mail, to all Securities Depositories and to an Information Service which shall state the information set forth above, but no defect in said notice nor any failure to give all or any portion of such further notice shall in any manner defeat the effectiveness of a call for redemption.

The Trustee shall have no responsibility for a defect in the CUSIP number that appears on any Certificate or in the redemption notice. The redemption notice may provide that the CUSIP numbers have been assigned by an independent service and are included in the notice solely for the convenience of Certificate Owners and that the Trustee and the Town shall not be liable in any way for inaccuracies in said numbers.

Partial Redemption of Certificate. Upon surrender of any Certificate redeemed in part only, the Trustee shall execute and deliver to the Owner thereof, at the expense of the Town, a new Certificate or Certificates of authorized denominations equal in aggregate principal amount to the unredeemed portion of the Certificate surrendered and of the same interest rate and the same maturity.

Purchase of Certificates. In lieu of redemption of Certificates, amounts held by the Trustee for such redemption may also be used on any Interest Payment Date, upon receipt by the Trustee at least ninety (90) days prior to the next scheduled Interest Payment Date of the written request of a Town Representative, for the purchase of Certificates at public or private sale as and when and at such prices (including brokerage, accrued interest and other charges) as the Town may in its discretion direct. Such purchases may be effected through the investment department of the Trustee or of an affiliate of the Trustee. The aggregate principal amount of Certificates of the same maturity purchased in lieu of redemption shall not exceed the aggregate

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principal amount of Certificates of such maturity which would otherwise be subject to such redemption.

Remaining moneys, if any, shall be deposited in the Lease Payment Fund. All Certificates purchased in lieu of redemption shall be canceled by the Trustee.

Transfer and Exchange of Certificates
The registration of any Certificate may, in accordance with its terms, be transferred upon the Registration Books by the person in whose name it is registered, in person or by his duly authorized attorney, upon surrender of such Certificate for cancellation at the Designated Corporate Trust Office of the Trustee, accompanied by delivery of a written instrument of transfer in a form acceptable to the Trustee, duly executed. Whenever any Certificate or Certificates shall be surrendered for registration of transfer, the Trustee shall execute and deliver a new Certificate or Certificates of the same maturity and aggregate principal amount, in any authorized denominations.

Certificates may be exchanged at the Corporate Trust Office of the Trustee, for a like aggregate principal amount of Certificates of other authorized denominations of the same maturity. The Town shall pay any costs of the Trustee incurred in connection with such exchange, except that the Trustee may require the payment by the Certificate Owner requesting such exchange of any tax or other governmental charge required to be paid with respect to such exchange.

Book-Entry System
The Certificates will be initially executed, delivered and registered as one fully registered certificate for each maturity, without coupons, in the name of Cede & Co., as nominee of DTC. DTC will act as securities depository of the Certificates. Individual purchases may be made in book-entry form only, in the principal amount of $5,000 and integral multiples thereof. Purchasers will not receive physical certificates representing their interest in the Certificates purchased. Principal and interest will be paid to DTC which will in turn remit such principal and interest to its participants for subsequent disbursement to the beneficial owners of the Certificates as described herein. So long as DTC’s book-entry system is in effect with respect to the Certificates, notices to Owners of the Certificates by the Town or the Trustee will be sent to DTC.

Notices and communication by DTC to its participants, and then to the beneficial owners of the Certificates, will be governed by arrangements among them, subject to then effective statutory or regulatory requirements. See APPENDIX F—DTC’S BOOK-ENTRY ONLY SYSTEM.

In the event that such book-entry system is discontinued with respect to the Certificates, the Town will cause the Trustee to execute and deliver replacements in the form of registered certificates and, thereafter, the Certificates will be transferable and exchangeable on the terms and conditions provided in the Trust Agreement.

SOURCE OF PAYMENT FOR THE CERTIFICATES
General
Each Certificate represents a direct, undivided fractional interest in the Lease Payments. Pursuant to the Lease Agreement, the Town will lease the Property from the Corporation and agree to make Lease Payments. See “THE PROPERTY.” Upon satisfaction of certain conditions set forth in the Lease

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Agreement, the Town may substitute the Property with other properties. See “Substitution or Removal of Property” and “Abatement” below.

As security for the Certificates, the Corporation will assign to the Trustee for the payment of principal and interest with respect to the Certificates, the Corporation’s rights, title and interest in the Lease Agreement (with certain exceptions), including the right to receive Lease Payments to be made by the Town under the Lease Agreement. The Lease Payments are designed to be sufficient, in both time and amount, to pay when due, the principal and interest with respect to the Certificates. The Lease Payments are payable by the Town from any source of legally available funds.

THE OBLIGATION OF THE TOWN TO MAKE LEASE PAYMENTS UNDER THE LEASE

AGREEMENT DOES NOT CONSTITUTE AN OBLIGATION OF THE TOWN FOR WHICH THE

TOWN IS OBLIGATED TO LEVY OR PLEDGE ANY FORM OF TAXATION OR FOR WHICH THE TOWN HAS LEVIED OR PLEDGED ANY FORM OF TAXATION. NEITHER THE CERTIFICATES

NOR THE OBLIGATION OF THE TOWN TO MAKE LEASE PAYMENTS UNDER THE LEASE

AGREEMENT CONSTITUTES AN INDEBTEDNESS OF THE TOWN OR THE STATE OR ANY

OF ITS POLITICAL SUBDIVISIONS WITHIN THE MEANING OF ANY CONSTITUTIONAL OR STATUTORY DEBT LIMITATIONS.

Lease Payments; Covenant to Appropriate
Pursuant to the Lease Agreement, the Town has agreed to make Lease Payments for the lease of the Property. Lease Payments will be made by the Town to the Trustee on May 15 and November 15 in each year, in advance of the corresponding June 1 and December 1 Interest Payment Dates. The Town will also pay as additional payments (“Additional Payments”), amounts required for the payment of all costs and expenses incurred by the Corporation to comply with the provisions of the Trust Agreement or in connection with the execution and delivery of the Certificates. The Town has covenanted under the Lease Agreement to take such action as may be necessary to include all Lease Payments in its annual budget and to make the necessary annual appropriations for all such payments. Under certain circumstances described under the Lease Agreement, however, Lease Payments are subject to abatement during periods of substantial interference with the Town’s use and occupancy of the Property or any portion thereof. See “SOURCE OF PAYMENT FOR THE CERTIFICATES—Abatement.”
Reserve Fund
The Trust Agreement provides that the Trustee will establish and maintain the Reserve Fund equal to the Reserve Requirement. On the date of delivery of the Certificates, an amount of Certificate proceeds equal to the Reserve Requirement will be deposited in the Reserve Fund. “Reserve Requirement” means an amount equal to the least of maximum annual Lease Payments, 125% of average annual Lease Payments and 10% of the principal amount of the Certificates, which amount shall be $______ on the Closing Date.

Amounts in the Reserve Fund are to be used only for the payment of the principal and interest with respect to the Certificates to the extent amounts in the Lease Payment Fund are insufficient therefor.

On the date of delivery of the Certificates, in lieu of a cash deposit to the Reserve Fund, the Municipal Bond Insurer will issue the Reserve Policy, in an amount equal to the Reserve Requirement.

There is no obligation for the Town to replace the Reserve Policy or to cash fund the Reserve Fund if the rating of the Municipal Bond Insurer is downgraded or withdrawn.

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Insurance
The Town is required to keep or cause to be kept casualty insurance against loss or damage by fire and lightning, with extended coverage and vandalism and malicious mischief insurance, in an amount at least equal to the lesser of (i) 100% of the replacement cost (without deducting for depreciation) of the Property and (ii) the aggregate principal amount of Certificates at the time outstanding. Such insurance shall, as nearly as practicable, cover loss or damage by explosion, windstorm, riot, aircraft, vehicle damage, smoke and such other hazards as are normally covered by such insurance.

To insure against loss of rental income caused by perils mentioned above, the Town is required to maintain, or cause to be maintained throughout the term of the Lease Agreement, rental interruption or use and occupancy insurance to cover loss, total or partial, of the use of any part of the Property as a result of any of the hazards described above in an amount at least equal to the maximum Lease Payments coming due and payable during any two consecutive fiscal years during the remaining term of the Lease Agreement.

Public liability and property damage insurance coverage is required in the minimum liability limits of $1,000,000 for personal injury or death of each person and $3,000,000 for personal injury or deaths of two or more persons in each accident or event, and in a minimum amount of $150,000 (subject to a deductible clause of not to exceed $5,000, or such higher amount as the Town shall determine, provided that such higher deductible shall be considered a self-insured retention) for damage to property resulting from each accident or event. Such public liability and property damage insurance may, however, be in the form of a single limit policy in the amount of $3,000,000 covering all such risks. Such liability insurance may be maintained as part of or in conjunction with any other liability insurance coverage carried by the Town and may be maintained in the form of insurance maintained through a joint exercise of powers authority created for such purpose or in the form of self-insurance by the Town. The net proceeds of such liability insurance shall be applied toward extinguishment or satisfaction of the liability with respect to which the insurance proceeds shall have been paid.

The Town shall provide, from moneys in the Costs of Issuance Fund or at its own expense, on the Closing Date, a CLTA title insurance policy in the amount of not less than the principal amount of the Certificates, insuring the Town’s leasehold estate in the Property, subject only to Permitted Encumbrances.

See APPENDIX E—SUMMARY OF THE PRINCIPAL LEGAL DOCUMENTS—LEASE AGREEMENT—Insurance.

Abatement
Pursuant to the Lease Agreement, Lease Payments shall be abated during any period in which, by reason of damage or destruction, there is substantial interference with the use and occupancy by the Town of the Property or any portion thereof (other than any modified portions of the Property as described in the Lease Agreement) to the extent to be agreed upon by the Town and the Corporation and communicated by a Town Representative to the Trustee. The parties agree that the amounts of the Lease Payments under such circumstances shall not be less than the amounts of the unpaid Lease Payments, unless such unpaid amounts are determined to be greater than the fair rental value of the portions of the Property not damaged or destroyed), based upon any appropriate method of valuation, in which event the Lease Payments shall be abated such that they represent said fair rental value. Such abatement shall continue for the period commencing with such damage or destruction and ending with the substantial completion of the work of repair or reconstruction as communicated by a Town Representative to the Trustee. In the event of any

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such damage or destruction, the Lease Agreement shall continue in full force and effect and the Town waives any right to terminate the Lease Agreement by virtue of any such damage and destruction.

Notwithstanding the foregoing, there shall be no abatement of Lease Payments to the extent that (a) the proceeds of rental interruption insurance or (b) amounts in the Insurance and Condemnation Fund and/or the Lease Payment Fund are available to pay Lease Payments ©h would otherwise be abated, it being hereby declared that such proceeds and amounts constitute special funds for the payment of the Lease Payments.

If an abatement event has occurred but remedied, the Town shall be required to extend the Term of the Lease Agreement for up to 10 years, as described in the Lease Agreement, until such time as the amounts abated are recouped. See “SOURCE OF PAYMENT FOR THE CERTIFICATES—Insurance,” APPENDIX E—SUMMARY OF THE PRINCIPAL LEGAL DOCUMENTS—Lease Agreement— Insurance and APPENDIX E—SUMMARY OF THE PRINCIPAL LEGAL DOCUMENTS—Lease Agreement—Abatement of Rental Payments in the Event of Damage or Destruction.

Eminent Domain
Pursuant to the Lease Agreement, if all of the Property is taken permanently under the power of eminent domain or sold to a government threatening to exercise the power of eminent domain, the term of the Lease Agreement shall cease as of the day possession shall be so taken. If less than all of the Property is taken permanently, or if the Property or any part thereof shall be taken temporarily, under the power of eminent domain, (1) the Lease Agreement shall continue in full force and effect and shall not be terminated by virtue of such taking and the parties waive the benefit of any law to the contrary, and (2) there shall be a partial abatement of Lease Payments as a result of the application of the Net Proceeds of any eminent domain award to the prepayment of the Lease Payments, in an amount to be agreed upon by the Town and the Corporation such that the resulting Lease Payments represent fair consideration for the use and occupancy of the remaining usable portion of the Property.

Optional Prepayment
Pursuant to the Lease Agreement, the Town has an option to prepay the principal components of the Lease Payments in full, by paying the aggregate unpaid principal components of the Lease Payments, in whole or in part, in a prepayment amount equal to the principal amount of Lease Payments to be prepaid, together with accrued interest to the date fixed for prepayment, with a premium as described above for the redemption of Certificates. See “THE CERTIFICATES—Prepayment—Optional Prepayment.” Said option may be exercised by the Town on any date on or after May 15, ____. In the event of prepayment in part, the partial prepayment will be applied against Lease Payments in such order of payment date as will be selected by the Town. Lease Payments due after any such partial prepayment will be in the amounts set forth in a revised Lease Payment schedule which will be provided by, or caused to be provided by, the Town to the Trustee and which will represent an adjustment to the schedule set forth in the Lease Agreement taking into account said partial prepayment.

Prepayment from Net Proceeds of Insurance and Condemnation The Town shall be obligated to prepay the Lease Payments for the Property, in whole or in part on any date, from and to the extent of any Net Proceeds of insurance award or condemnation award with respect to the Property that have been deposited with the Trustee in the Lease Payment Fund for such purpose. Such proceeds shall be applied to the prepayment of the principal component of the Lease

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Payments and the prepayment of the Certificates. See “THE CERTIFICATES—Prepayment— Prepayment from Net Proceeds of Insurance and Condemnation.” Substitution of Property
(c) Substitution of Property. The Town shall have, and is hereby granted, the option at any time and from time to time during the Term of the Lease Agreement to substitute other land and facilities (“Substitute Property”) for the Property, provided that the Town shall satisfy all of the following requirements (to the extent applicable) which are hereby declared to be conditions precedent to such substitutio(i) The Town shall file with the Corporation, the Trustee and the Municipal Bond Insurer amended exhibits to the Site and Facility Lease which adds thereto a description of such Property and deletes therefrom the description of the Property;
(ii) The Town shall file with the Corporation, the Trustee and the Municipal Bond Insurer amended exhibits to the Lease Agreement which adds thereto a description of such Substitute Property and deletes therefrom the description of the Property; (iii) The Town shall certify in writing to the Corporation, the Trustee and the Municipal Bond Insurer that such Substitute Property serve the purposes of the Town, constitutes property that is unencumbered, subject to Permitted Encumbrances, and constitutes property which the Town is permitted to lease under the laws of the State; (iv) The Town delivers to the Corporation, the Trustee and the Municipal Bond Insurer an Officer’s Certificate of the Town based on insurance values or any other reasonable basis of valuation received by the Town (which need not require an appraisal) that the value of the Property following such substitution is equal to or greater than the Outstanding principal amount of the Certificates and confirms in writing to the Trustee that the indemnification provided pursuant to the Trust Agreement applies with respect to the Substitute Property; (v) The Substitute Property shall not cause the Town to violate any of its covenants, representations and warranties made in the Lease Agreement and in the Trust Agreement, as evidenced by an officer’s certificate delivered to the Corporation, the Trustee and the Municipal Bond Insurer;
(vi) The Town shall obtain an amendment to the title insurance policy required pursuant to the Lease Agreement which adds thereto a description of the site of the Substitute Property and deletes therefrom the description of the Site;
(vii) The Town shall provide notice of the substitution to any rating agency then rating the Certificates which rating was provided at the request of the Town; and (viii) The Town shall furnish the Corporation, the Trustee and the Municipal Bond Insurer with a written opinion of Special Counsel, which shall be an Independent Counsel, stating that such substitution does not cause the interest components of the Lease Payments to become subject to federal income taxes or State personal income taxes.

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(c) Release of Site. The Town shall have, and is hereby granted, the option at any time and from time to time during the Term of the Lease Agreement to release any portion of the Site, provided that the Town shall satisfy all of the following requirements which are hereby declared to be conditions precedent to such releas(i) The Town shall file with the Corporation, the Trustee and the Municipal Bond Insurer an amended exhibit to the Site and Facility Lease which describes the Site, as revised by such release; (ii) The Town shall file with the Corporation, the Trustee and the Municipal Bond Insurer an amended exhibit to the Lease Agreement which describes the Site, as revised by such release; (iii) The Town delivers to the Corporation, the Trustee and the Municipal Bond Insurer an Officer’s Certificate of the Town based on insurance values or any other reasonable basis of valuation received by the Town (which need not require an appraisal) that the value of the Property, as revised by such release, is equal to or greater than the Outstanding principal amount of the Certificates and confirms in writing to the Trustee and the Corporation that the indemnification provided pursuant to the Trust Agreement applies with respect to the Site, as revised by such release; (iv) Such release shall not cause the Town to violate any of its covenants, representations and warranties made herein and in the Trust Agreement, as evidenced by an officer’s certificate delivered to the Trustee;
(v) The Town shall obtain an amendment to the title insurance policy required pursuant to the Lease Agreement which describes the Site, as revised by such release; and (vi) The Town shall provide notice of the release to any rating agency then rating the Certificates which rating was provided at the request of the Town or the Corporation.

Events of Default and Remedies
(c) The following shall be “events of default” under the Lease Agreemen(a) Failure by the Town to pay any Lease Payment or other payment required to be paid hereunder at the time specified herein.
(b) Failure by the Town to observe and perform any covenant, condition or agreement on its part to be observed or performed under the Lease Agreement (including failure to request appropriation pursuant thereunder) or under the Trust Agreement, other than as referred to in clause (a) above, for a period of thirty (30) days after written notice specifying such failure and requesting that it be remedied has been given to the Town by the Corporation, the Trustee or the Owners of not less than five percent (5%) in aggregate principal amount of Certificates then outstanding; provided, however, if the failure stated in the notice can be corrected, but not within the applicable period, the Corporation, the Trustee (as directed by such Owners of not less than 5% in aggregate principal amount of Certificates then Outstanding) and such Owners shall not unreasonably withhold their consent to an extension of such time if corrective action is instituted by the Town within the applicable period and diligently pursued until the default is correcte© (c) The filing by the Town of a voluntary petition in bankruptcy, or failure by the Town promptly to lift any execution, garnishment or attachment, or adjudication of the Town as a bankrupt, or assignment by the Town for the benefit of creditors, or the entry by the Town into an agreement of composition with creditors, or the approval by a court of competent jurisdiction of a petition applicable to the Town in any

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proceedings instituted under the provisions of the Federal Bankruptcy Act, as amended, or under any similar acts which may hereafter be enacted.

Whenever any event of default shall have happened and be continuing, it shall be lawful for the Corporation to exercise any and all remedies available pursuant to law or granted pursuant to the Lease Agreement; provided, however, that notwithstanding anything in the Lease Agreement or in the Trust Agreement to the contrary, there shall be no right under any circumstances to accelerate the Lease Payments or otherwise declare any Lease Payments not then in default to be immediately due and payable.

Each and every covenant to be kept and performed by the Town under the Lease Agreement is expressly made a condition and upon the breach thereof the Corporation may exercise any and all rights of entry and re-entry upon the Property, and also, at its option, with or without such entry, may terminate the Lease Agreement. In the event of such default and notwithstanding any re-entry by the Corporation, the Town shall, as expressly provided in the Lease Agreement, continue to remain liable for the payment of the Lease Payments and/or damages for breach of the Lease Agreement and the performance of all conditions contained in the Lease Agreement and, in any event, such rent and/or damages shall be payable to the Corporation at the time and in the manner as provided in the Lease Agreement.

Amendment of Lease Agreement
Except as provided below, without the prior written consent of the Trustee, the Town will not alter, modify or cancel, or agree or consent to alter, modify or cancel the Lease Agreement, excepting only such alteration or modification as may be permitted by the Trust Agreement.

MUNICIPAL BOND INSURANCE
[TO COME]

THE TOWN
The Town is a general law city that was initially incorporated on August 20, 1984. The Town is located in the County is the County’s only incorporated city. The Town is located in California’s Eastern Sierra Range approximately 100 mi (160 km) south of the Nevada state line and 50 minutes by car from the Eastern Gate of Yosemite National Park. The Town is home to approximately 7,300 residents. The Town provides municipal services to its citizens including police, public works, airport facilities, community development, parks and recreation and general administrative support.

The Town is located immediately to the east of Mammoth Mountain, home to the Mammoth Mountain Ski Area, a 25-lift ski resort owned and operated by the Alterra Mountain Company. The Ski Area is frequented during the ski season by skiers and snowboarders from southern California as the Town is an approximately five-hour drive from Los Angeles via U.S. 395. The Ski Area is much closer to Los Angeles County and Orange County than the Lake Tahoe area resorts. The Town also has significant

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tourism in the summer season from visitors to the Town and the Ski Area who visit to camp, hike, mountain bike and fish.

The Town operates under a council-manager form of government. The five-member Town Council (the “Town Council”) is elected on an at large basis by the Town’s voters. Town Council members serve four-year terms. The Mayor and Mayor Pro Tem are elected by the Town Council Members to one-year terms. The Town Council appoints the Town Manager and the Town Attorney. The Town Manager is responsible for directing, coordinating and carrying out Town Council policies.

The current members of the Town Council are as follows:

Name and Office Current Term Expires
Bill Sauser, Mayor November 2024
Chris Bubser, Mayor Pro Tem November 2026
Sarah Rea, Councilmember November 2024
Amanda Rice, Councilmember November 2026
John Wentworth, Councilmember November 2026
The Town is economically dependent on tourism-generated tax dollars for providing revenue to its General Fund. A significant portion of the Town’s General Fund Revenues are derived from transient occupancy taxes on tourism to the Ski Area and the surrounding region. The Ski Area has been in continuous operation since the opening of its first ski lift in 1955. The Ski Area features year-round activities, including skiing and snowboarding in the winter season and hiking, fishing and mountain biking in the summer season. The owner of the Ski Area, the Alterra Mountain Company, is a privately held hospitality company headquartered in Denver, Colorado. Other ski resorts operated by the Alterra Mountain Company in California include nearby June Mountain, Big Bear Mountain, and Palisades Tahoe/Alpine Meadows. The Alterra Mountain Company also operates ski resorts in areas including Park City, Utah, Vermont, Colorado, and Canada. Purchasers of an annual pass called an “Ikon Pass” are able to visit any resort owned by the Alterra Mountain Company. For additional discussion of the Town’s General Fund, see “TOWN FINANCIAL INFORMATION” and “RISK FACTORS – Dependence on Tourism.”
See APPENDIX A—GENERAL, ECONOMIC AND DEMOGRAPHIC INFORMATION RELATING TO THE TOWN AND THE COUNTY for an additional description of the Town, a summary of recent development activity within the Town, and certain demographic and statistical information.

TOWN FINANCIAL INFORMATION
Financial Statements and Budgetary Process
The Town’s accounting policies conform to generally accepted accounting principles. The audited financial statements also conform to the principles and standards for public financial reporting established by the Governmental Accounting Standards Board.

Basis of Accounting and Financial Statement Presentation. The government-wide financial statements are reported using the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Property taxes are

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recognized as revenues in the year for which they are levied. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the provider have been met.

Governmental fund financial statements are reported using the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. Expenditures generally are recorded when a liability is incurred, as under accrual accounting. However, debt service expenditures are recorded only when payment is due.

Audited Financial Statements. The Town retained Price Paige & Company, Clovis, California (the “Town’s Auditor”), to examine the general-purpose financial statements of the Town as of and for the year ended June 30, 2023. The audited financial statements for fiscal year ended June 30, 2023, are included in APPENDIX B—ANNUAL COMPREHENSIVE FINANCIAL REPORT OF THE TOWN FOR THE FISCAL YEAR ENDED JUNE 30, 2023. The Town has not requested, and the Town’s Auditor has not provided, any review or update of such financial statements in connection with their inclusion in this Official Statement.

Budget Process. The Town Council adopts a budget for the fiscal year by June 30 preceding the beginning of the fiscal year on July 1. The Town has adopted an annual budget process that is the foundation for the Town’s financial planning and control. The Town’s budgets are prepared by fund, function (e.g., public safety), and department (e.g., police). The Town’s proposed budgets must be balanced, with balanced being defined as the anticipated annual fiscal expenditures not exceeding the annual fiscal revenues less non-recurring fund transfers. Budgetary control for operations is maintained at the department level by individual funds. Budgetary control for capital improvement projects (i.e., project-length financial plans) is maintained at the individual project level by fund. The Town’s budgeted expenditure authority lapses at the end of each fiscal year. However, outstanding purchase order commitments or capital improvement projects may be re-appropriated for the subsequent fiscal year upon Town Council approval. The Town makes mid-cycle budget adjustments as necessary throughout the fiscal year.

The Town has adopted certain reserve policies with 19nsecurt to its General fund, including a reserve for economic uncertainty, an operating reserve, and a debt reserve. For additional discussion of the Town’s General Fund reserve policies, see “Town Financial Management.” Certain of the Town’s revenues are collected and dispersed by the State (such as sales tax and motor-vehicle license fees) or allocated in accordance with State law (most importantly, property taxes).

Therefore, State budget decisions can have an impact on Town finances. See “STATE BUDGET INFORMATION.”

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General Fund Balance Sheet
The following table shows the Town’s audited General Fund balance sheets for the five most recent fiscal years.

Table 1

TOWN OF MAMMOTH LAKES

GENERAL FUND BALANCE SHEET
Fiscal Years 2018-19 through 2022-23
Fiscal Year Ending June 30,
2019 2020 2021 2022 2023
Audited Audited Audited Audited Audited
ASSETS
Cash and investments $14,791,696 $16,224,913 $17,982,578 $17,720,531 $13,267,717 Receivables 2,406,291 1,518,729 2,820,273 3,525,195 4,540,947 Due from other funds — — — 7,229
Total Assets 17,197,987 17,743,642 20,802,851 21,252,955 17,808,664

LIABILITIES
Accounts payable 985,281 2,434,937 3,719,408 2,174,067 2,083,233 Accrued payroll and benefits — — — 503,301 56,040
Deposits and other liabilities — — — 77,043 —
Unearned revenue — — — 1,221,357 1,152,366
Advances from other funds 2,831,207 2,491,207 2,491,207 1,671,207 851,207 Total Liabilities 3,816,488 4,926,144 6,210,615 5,646,975 4,142,846

DEFERRED INFLOWS
Unavailable revenues — — — 126,813 126,813
FUND BALANCES — — — — —
Restricted — — — 1,812,196 —
Committed 7,451,936 1,205,002 10,794,758 6,712,136 10,896,376 Assigned — — 534,041 — 0
Unassigned 5,929,563 11,612,496 3,263,437 6,954,835 2,642,630 Total Fund Balances 13,381,499 12,817,498 14,592,236 15,479,167 13,539,005 Total Liabilities, Deferred Inflows
and Fund Balances
17,197,987 17,743,642 20,802,851 21,126,142 17,681,851
Sources: Town of Mammoth Lakes Annual Comprehensive Financial Reports for Fiscal Years 2018-19 through 2022-23.

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General Fund Revenues, Expenditures, and Changes in Fund Balances The following table shows the Town’s audited results for General Fund revenues and expenditures for the four most recent fiscal years and budgeted projections for fiscal year 2023-24.

Table 2

TOWN OF MAMMOTH LAKES

GENERAL FUND REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES Fiscal Years 2019-20 through 2023-24
Fiscal Year Ending June 30,
2020 2021 2022 2023 2024
Audited Audited Audited Audited Budgeted (1)

REVENUES
Taxes and assessments (2) $24,133,152 $25,543,395 $36,700,248 $40,847,571 $27,454,000 Licenses and permits 643,579 957,809 1,254,841 908,286 824,000 Intergovernmental 509,791 546,939 2,361,848 205,769 233,800 Charges for services 812,721 683,693 1,323,448 1,744,169 1,351,365 Fines and forfeitures 48,585 146,028 212,114 149,707 112,000 Use of money and property 353,569 140,474 129,617 924,642 12,000 Other revenues 97,616 31,466 168,884 206,430 30,000
Total Revenues 26,599,013 28,049,804 45,121,000 45,016,572 30,017,165

EXPENDITURES
General government 4,846,082 4,629,269 5,146,090 7,191,662 6,006,941 Public safety 4,896,287 5,070,267 4,527,653 5,096,686 5,716,289 Tourism, parks, and recreation 4,289,549 3,616,240 4,904,993 6,580,318 5,551,684 Community development 3,236,549 3,021,455 2,688,356 1,521,413 2,887,556 Public works/streets 789,335 - 924,665 1,308,986 1,182,628 Transportation and transit 897,869 954,723 787,091 784,605 1,080,020 Community support — 1,301,238 129,451 — —
Capital outlay — — — — —
Debt Service – Principal — — — — —
Debt Service – Interest — — — — —
Total Expenditures 18,955,671 18,593,192 19,108,299 22,483,671 22,425,119 REVENUES OVER EXPENDITURES 7,643,342 9,456,612 23,042,701 22,532,902 7,592,046

OTHER FINANCING SOURCES
Transfers in 2,582,555 1,705,807 10,027 1,492,229 440,000 Transfers out (3) (10,789,898) (9,387,681) (22,992,279) (22,815,500) (12,208,747) Total Other Financing Sources (8,207,343) (7,681,874) (22,832,252) (24,307,730) (12,648,747) NET CHANGE IN FUND BALANCES (564,001) 1,774,738 210,449 1,774,828 (5,056,701) FUND BALANCES – BEGINNING OF YEAR 13,381,499 12,817,498 15,268,718 15,313,833 13,539,005 FUND BALANCES – END OF YEAR 12,817,498 14,592,236 15,479,167 13,539,005 8,482,304 Source: Town of Mammoth Lakes Annual Comprehensive Financial Report for Fiscal Years 2019-20 through 2022-23 data and Town of Mammoth Lakes for Fiscal Year 2023-24 data.
(1) FY2023-24 budgeted data was provided by the Town and is based on the Town’s FY2023-24 Budget, as originally adopted on June 21, 2023, and as most recently revised on ___________ _____, 2024. (2) For additional detail see “Primary Sources of General Fund Revenues.” (3) For additional detail see “General Fund Transfers.”

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General Fund Budget
The following table shows the Town’s General Fund budget figures for the two most recent fiscal years, including a comparison of the Town’s initial budget, final budget, audited actual for each year.

Table 3

TOWN OF MAMMOTH LAKES

GENERAL FUND BUDGET COMPARISON
Fiscal Years 2019-20 and 2020-21
Fiscal Year Ending June 30, 2022 Fiscal Year Ending June 30, 2023 Adopted Final Audited Adopted Final Audited
Budget Budget Actuals Budget Budget Actuals

REVENUES
Taxes and assessments $22,859,850 $36,178,950 $36,700,248 $25,041,000 $39,729,775 $40,847,570 Licenses and permits 718,980 1,168,980 1,254,841 785,600 903,600 908,285, Intergovernmental 141,000 321,624 2,361,848 111,000 142,000 205,769 Charges for services 858,049 1,368,049 1,323,448 987,490 1,429,490 1,774,168 Fines and forfeitures 67,200 212,000 212,114 112,000 137,000 149,706 Use of money and property 49,670 61,370 129,617 85,000 235,000 924,641 Other revenues 146,000 286,000 168,884 30,000 91,400 206,429 Total Revenues 24,840,749 39,596,973 42,151,000 27,152,090 42,668,265 45,016,752

EXPENDITURES
General government 4,873,330 5,073,426 5,146,090 7,092,842 6,960,644 7,191,662 Public safety 4,778,579 4,535,971 4,527,653 4,984,809 5,107,009 5,096,686 Tourism, parks, and recreation 4,479,225 4,516,132 4,904,993 6,765,447 9,351,526 6,580,318 Community development 2,105,326 2,535,024 2,688,356 1,995,739 2,737,039 1,521,412 Public works/streets 1,157,421 1,019,461 924,665 1,051,104 1,281,304 1,308,986 Transportation and transit 1,132,918 1,133,958 787,091 1,171,200 1,571,200 784,604 Community support — — 129,451 — — —
Capital outlay — — — — — —
Debt Service – Principal — — — — — —
Debt Service – Interest — — — — — —
Total Expenditures 18,526,799 18,813,972 19,108,299 23,061,141 27,008,722 22,483,668 REVENUES OVER EXPENDITURES 6,313,950 20,783,001 23,042,701 4,090,949 15,659,543 22,533,084

OTHER FINANCING SOURCES
Transfers in 150,000 150,000 160,027 375,000 375,000 1,492,229 Transfers out (5,954,085) (22,587,279) (22,992,279) (65,093,349) (18,892,499) (18,588,667) Total Other Financing Sources (5,804,085) (22,437,279) (22,832,252) (64,718,349) (18,517,499) (17,096,438) NET CHANGE IN FUND BALANCES 509,865 (1,654,278) 210,449 (60,627,400) (2,857,956) 5,436,646 FUND BALANCES – BEGINNING OF YEAR 15,268,718 15,313,833 FUND BALANCES – END OF YEAR 15,479,167 20,750,479
Source: Town of Mammoth Lakes Annual Comprehensive Financial Reports for Fiscal Year 2021-22 and Fiscal Year 2022-23.

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General Fund Transfers
The Town makes significant annual transfers out from its General Fund to its other operating funds. In recent years the largest sources of Transfers Out have included transfers for debt service, contributions to the gas tax fund for costs including snow removal, and transfers for capital projects including housing and community development. The following table shows a five-year summary of the transfers out from the Town’s General Fund.

Table 4

TOWN OF MAMMOTH LAKES

GENERAL FUND TRANSFERS OUT DETAIL
Fiscal Years 2018-19 through 2022-23
Fiscal Year Ending June 30,
Transfer Out From the General Fund To: 2019 2020 2021 2022 2023 Debt Service – MLLA Settlement $1,869,440 $2,000,000 $1,867,288 $ 1,867,037 $2,000,000 Debt Service – Lease Rev. Bond 2015 – Police Facility 315,616 314,192 314,540 314,608 314,394 Debt Service – SWRCB 78,915 — — — —
Debt Service – Garage Service Loan 340,000 340,000 — 340,000 — Debt Service – Loan Fees 4,880 5,000 3,660 3,750 5,000
Support of COVID-19 Emergency Response — 1,300,000 882,308 — — Capital Projects – Set Aside for Future Capital — — 550,000 1,288,554 2,713,900 Capital Projects – In Progress 695,360 — 315,640 2,425,000 — LTC 5,524 — — — —
Housing & Community Development — — 1,400,000 4,800,000 3,842,000 Gas Tax – General Fund Contribution 2,704,761 2,062,932 - 2,953,428 3,431,086 Airport Operations – General Fund Contribution 677,311 291,274 100,000 493,089 — Transit Contribution to Bus Shelter Capital Project — 330,000 — — 400,000 Transit Contribution to Transit Building CIP — 350,000 — — — Transit Contribution to Vehicle Replacement — 400,000 — — 250,000 Transit Contribution to Winter Animation Project — 100,000 — — — Housing RLF – General Fund Contribution — 45,000 — — —
Garage Replacement Fund 602,600 — — 50,000 —
Capital Projects — — — 3,206,813 —
CRC Support — — — — 50,000
Emergency Support — — — — 1,627,250
Tourism Contribution to Housing — — — — 1,465,400
Tourism Contribution to Trails Host — — — — 100,000
Tourism Contribution to Fish Stocking — — — — 50,000
Tourism Contribution to Air Subsidy — — — — 500,000
Tourism Contribution to Capital Projects — — — — 450,000 Housing Contribution to Housing Programs — — — — 1,261,432 Measure R — 45,000 — 20,000 55,038
TOTAL TRANSFERS OUT $7,294,367 $7,583,398 $5,433,436 $17,762,279 $22,815,500 Source: Town of Mammoth Lakes.

Town Financial Management
The Town Council has adopted a comprehensive set of financial management policies to provide for: (i) establishing targeted General Fund reserves; (ii) the prudent investment of Town funds, and (iii) management of debt. The Town’s practice is to incur debt only after deliberation over the effect of such debt on the Town’s General Fund and other resources of the Town, and in those circumstances where the use of debt would be appropriate to the scale and economic life of the asset being financed and the

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accumulation or availability of reserves to fund the capital requirement.

General Fund Reserve Policies. The Town’s Reserve Policy was most recently updated in 2022 and is reviewed annually based on the growth of General Fund revenues. The Town’s General Fund reserves consists of three separate elements, a Reserve for Economic Uncertainty (“REU”), an Operating Reserve (“OR”), and a debt reserve (“DR”).

The Reserve for Economic Uncertainty (REU) was established to minimalize the impact to town services in the event of a long-term revenue shortfall from an economic downturn or other localized event that negatively affects the Town’s revenue sources. These localized events could be in the form of a natural disaster that affects the Town itself or access to the Town. The funding target is 20% of General Fund revenue, or $6,000,000 for FY2023-24. The REU is currently fully funded and in compliance with the policy.

The Operating Reserve (OR) is engaged to weather short-term economic impacts or to take advantage of unanticipated funding needs such as grant opportunities, response to damaged facilities, unanticipated short-term declines in revenue or new state and federal cost mandates. The funding target is 5% of General Fund revenue or roughly $1,500,000 for FY2023-24. The OR is fully funded and in compliance with the policy.

The Debt Reserve (DR) provides funding to cover the Town’s debts in the event of a long-term revenue shortfall from an economic downturn or other localized event that negatively affects the Town’s revenue sources. The funding target is 50% of the annual debt service paid by the General Fund. The two bonds that qualify are the Lease Revenue Bond for the Police Facility (2015) and the Taxable Judgement Obligation bond for MLLA settlement refinancing (2017). The target funding based on these two obligations is $1,100,000 for FY2023-24. The DR is fully funded and in compliance with the policy.

The Town also funds a $100,000 contingency fund designed to meet smaller unanticipated costs within the operating budget. It may also be used to meet other shortfalls in funding for capital projects. The contingency fund is fully funded for FY23-24 and is in compliance with the policy.

Investment Policy. The investment of funds of the Town (except pension and retirement funds) is made in accordance with the Town’s Investment Policy, most recently approved on January 18, 2023 (the “Investment Policy”), prepared by the Town Treasurer as authorized by section 53601 of the Government Code of California. The Investment Policy allows for the purchase of a variety of securities and provides for limitations as to exposure, maturity and rating which vary with each security type. The composition of the portfolio will change over time as old investments mature, or are sold, and as new investments are made.

Invested funds are managed to ensure preservation of capital through high quality investments, maintenance of liquidity and then yield. Further, operating funds may not be invested in any investment with a maturity greater than five years.

Debt Management Policy. In accordance with section 8855(i) of the California Government Code the Town adopted a debt management policy effective as of January 1, 2017, to establish conditions for the use of debt; to ensure that debt capacity and affordability are adequately considered; to minimize the Town’s interest and issuance costs; to maintain the highest possible credit rating; to provide complete financial disclosure and reporting; and to maintain financial flexibility for the Town.

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Primary Sources of General Fund Revenues
The Town’s largest General Fund revenue source is transient occupancy taxes, which typically account for approximately 60% of the Town’s General Fund revenues. The second largest General Fund revenue source is property taxes, which typically account for approximately 13% of the Town’s General Fund revenues. Sales and use taxes, the General Fund’s third largest revenue source, typically account for 9% of the Town’s General Fund revenues. Together these three primary sources of General Fund revenues have constituted over 80% of the Town’s General Fund revenues in recent years.

The Town is economically dependent on tourism-generated tax dollars for providing a significant portion of revenue to its General Fund. Tourism to the Town, driven primarily by year-round activity at the Ski Area, accounts for essentially all the transient occupancy taxes collected and a significant portion of all sales taxes collected. Property tax revenue, driven in part by vacation properties and tourism infrastructure, is also a main contributor to the General Fund. A downturn in the operations of the Ski Area or of the tourism industry generally for the Town would result in a substantial reduction in General Fund revenue.

The table below shows the Town’s primary General Fund revenue sources for the four most recent fiscal years and budgeted projections for Fiscal Year 2023-24. Following the table is a brief discussion of each of the Town’s primary sources of General Fund revenues.

Table 5

TOWN OF MAMMOTH LAKES

PRIMARY SOURCES OF GENERAL FUND REVENUES
Fiscal Year Ending June 30,
2020 2021 2022 2023 2024
Audited Audited Audited Audited Budgeted (2)
Transient Occupancy Taxes $16,298,944 $16,945,645 $27,127,887 $30,116,306 $18,287,000 Property Taxes 4,054,115 4,572,245 4,736,931 5,374,261 4,705,000 Sales and Use Taxes(1) 2,372,657 2,513,299 3,358,773 3,766,418 3,000,000 Total Primary Sources 22,725,716 24,031,189 35,223,591 39,256,985 25,992,000 All Other General Fund Revenues 3,873,297 4,018,615 9,897,409 5,759,587 4,025,165 Total General Fund Revenues $26,599,013 $28,049,804 $45,121,000 $45,016,572 $30,017,165 Source: Town of Mammoth Lakes 2019-20 through 2022-23 Annual Comprehensive Financial Reports and Town of Mammoth Lakes.
(1) Amounts do not include Measure R Sales Taxes. Measure R Sales Tax receipts are a restricted revenue source accounted for in a separate fund and are not available to the General Fund for General Fund purposes. For additional discussion, see “Sales and Use Taxes.”
(2) FY2023-24 budgeted data was provided by the Town and is based on the Town’s FY2023-24 Budget, as originally adopted on June 21, 2023, and as most recently revised on December 6, 2023.

Transient Occupancy Taxes. The Town currently imposes a voter-approved general transient occupancy tax upon any unit in the Town that is occupied for the purposes of sleeping, lodging, or similar reasons for a period of 30 consecutive days or less, charged to the transient (or guest) who is entitled to such occupancy. Transient occupancy tax revenues are the Town’s largest source of General Fund revenues.

The current rate of the Town’s transient occupancy tax is 13% of the taxable revenue charged by the unit operator for the use of the unit. The current transient occupancy tax rate was approved in an election held on June 6, 2006, by the voters of the Town. As the Town’s transient occupancy tax is a general tax, transient occupancy tax proceeds are deposited into the Town’s General Fund and may be used for any and all municipal purposes. In each of Fiscal Year 2021-22 and 2022-23, transient occupancy taxes generated

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approximately $27.1 million and $_____ million, representing a significant recovery from lows experienced in fiscal year 2019-20 and 2020-21 due to disruptions to tourism resulting from the COVID-19 Pandemic. The Town has estimated that transient occupancy tax revenues will generate $_____ million in Fiscal Years 2023-24, continuing the recovery trend from fiscal year 2021-22. For additional discussion and detail, see “Transient Occupancy Taxes.”
Property Taxes. Property taxes are the General Fund’s second largest revenue source. The County levies a tax of 1% on the assessed valuation of property within the County. The Town receives a share of this 1% levy on the assessed value of property located within the Town limits. In each of Fiscal Year 2021- 22 and 2022-23, property taxes generated approximately $4.7 million and $_____ million. The Town has estimated that property tax revenues will generate $_____ million in Fiscal Years 2023-24. See “Property Taxes” below for additional information relating to the property taxes and the assessed valuation of property located in the Town.

Sales and Use Taxes. Sales and use taxes are the General Fund’s third largest revenue source. The Town receives a 1% share of all taxable sales generated within its borders from the State. While the Town also receives sales and use taxes from a voter-approved 0.5% transaction and use tax (“Measure R”) on all taxable sales generated within its borders, Measure R is a special tax accounted for in a separate fund the proceeds of which are not available to the Town’s General Fund for General Purposes. In each of Fiscal Year 2021-22 and 2022-23, sales and use taxes (excluding Measure R taxes) generated approximately $3.3 million and $_____ million, representing a recovery from lows in sales and use tax collections experienced in fiscal years 2019-20 and 2020-21 due to disruptions to tourism resulting from the COVID-19 Pandemic.

The Town has estimated that sales and use tax revenues (excluding Measure R taxes) will generate $_____ million in fiscal year 2023-24. For additional discussion of the Town’s General Fund sales tax revenues, see “Sales and Use Taxes.”
Transient Occupancy Taxes
Tourism in the Town is driven in large part by activity at or around the Ski Area. As described under “THE TOWN” and summarized here, the Ski Area is a 25-lift ski resort owned and operated by the Alterra Mountain Company that is frequented during the winter season by skiers and snowboarders primarily from southern California. The Town also has significant tourism in the summer season in and around the Ski Area from visitors who come to the Town and the Ski Area to camp, hike, mountain bike and fish.

The Town levies a transient occupancy tax (“TOT”) rate of 13% upon the taxable revenues generated by visitors to any unit in the Town that is occupied for the purposes of sleeping, lodging, or similar reasons for a period of 30 consecutive days or less. The current rate of the transient occupancy tax was approved by the voters of the Town voting in an election occurring on June 6, 2006.

While the Town’s transient occupancy tax is a general tax, the Town Council by policy has voluntarily committed to use funding from transient occupancy taxes for certain purposes. The allocation for fiscal year 2023-24 includes 4.05% of the 13% TOT tax comprised of the following: Tourism (2.35%), Workforce Housing (.85%) and Transit Services (.85%). These commitments are a significant portion of the transfers out from the General Fund. For additional discussion, see “General Fund Transfers Out.” While the Town Council has consistently met its voluntary commitment regarding these amounts, these funds may be used for any general government purpose including the payment of principal of and interest on the Certificates.

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The Town is economically dependent on tourism-generated tax dollars for providing revenue to its General Fund. Tourism to the Town and to the Ski Area accounts for essentially all the transient occupancy taxes collected. The Town also benefits from recreational opportunities in the Inyo National Forest, especially in the summer months Consequently, a downturn in the tourism industry for the Town would result in a substantial reduction in General Fund revenue. In the event of such a downturn, the Town may have insufficient resources in its General Fund to pay all of its obligations or provide services to its citizens at the current level.

TOT Tax Collection Procedures. The Town’s Finance Department collects the TOT revenues generated in the Town. The TOT revenue is collected and accounted for from hotel and motel operators, rental agents who rent condominiums and/or homes, homeowners who rent their own condominiums and/or homes, campgrounds and trailer parks. Each TOT operator is responsible to remit on a monthly basis, based on gross receipts from revenues earned in the month previous. The Town provides a Monthly Return Form on which each TOT operator reports gross rents, deductions as allowable by ordinance, its taxable rents and the amount of tax that is due and payable. All TOT operators are required to submit the form, along with full applicable payment by the due date. If the monthly return and full applicable payment are delinquent, a 15% penalty is assessed for the first month along with an 18% annual interest charge. if the monthly return is delinquent a second month, an additional 15% penalty is assessed. Delinquent TOT revenues historically have had only a nominal impact on collections of TOT revenues.

The Town has an auditing system where the top 20 remitters, approximately _____% of total TOT, are tracked on an annual basis for the purposes of looking for consistency year-after-year and for consistency among the group. This allows the Town to look for trends and track differences in performance of one individual compared to others. The purpose of this approach is to pre-screen the business and identify who needs to be audited first to provide the most efficient process of auditing.

The Town’s Municipal Code provides a series of security measures to ensure that operators of lodging facilities pay the TOT revenue. Such security measures include delinquency notices to all operators who fail to remit monthly returns or fail to pay balances in full, authorization to issue administrative citations for illegal operation, and sanction of legal action against uncertified or delinquent operators; including tax liens on real property for delinquent TOT.

Town Rental Inventory. The following table shows a four-year history of the unit counts of the types and quantities of available rental property in the Town subject to the TOT for the most recent fiscal years.

Table 6

TOWN OF MAMMOTH LAKES

AVAILABLE RENTAL UNITS
Fiscal Years 2019-20 through 2022-23
Count of Units Subject to TOT in Fiscal Year Ending June 30, Unit Type 2020 2021 2022 2023
Condominium 3,147 3,061 3,311
Hotel/Motel/Lodge 1,086 999 1,090
Bed & Breakfast 16 11 29
Campground/RV Site 611 634 615
Chalet, Cabin, Hostel or Other 123 121 228
Single Family Home 7 4 4

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Long Term Rental 715 941 1,093
TOTAL AVIALABLE UNITS 5,705 5,771 6,370
Source: Town of Mammoth Lakes.

Historical TOT Revenues. The Town experiences two tourist seasons, winter and summer. The Town typically has seen more visitors in the winter season than the summer season, though that trend was briefly reversed in the COVID-19 Pandemic when significant declines in winter tourism were experienced in fiscal years 2019-20 and 2020-21. Winter tourism has rebounded from COVID-19 Pandemic lows in fiscal year 2021-22 and fiscal year 2022-23. The following table highlights historical seasonal differences in TOT revenues for the ten most recent fiscal years.

Table 7

TOWN OF MAMMOTH LAKES

HISTORICAL SEASONAL TOT REVENUE
Fiscal Years 2012-13 through 2022-23
Fiscal Year
Ending
June 30,
Winter
(Dec-Mar)
%
Winter
Summer
(Apr-Nov)
%
Summer
Total TOT
Revenues
2013 $ 7,428,834 63.4% $ 4,286,189 36.6% $11,715,023
2014 5,947,501 57.4 4,415,758 42.6 10,363,259
2015 6,401,920 56.6 4,907,077 43.4 11,308,997
2016 9,620,717 61.1 6,112,789 38.9 15,733,506
2017 11,132,927 61.5 6,958,537 38.5 18,091,464
2018 10,639,802 59.5 7,227,599 40.5 17,867,401
2019 12,825,531 63.5 7,385,530 36.5 20,211,061
2020(1) 9,474,191 59.3 6,500,058 40.7 15,974,249
2021(1) 6,205,440 37.6 10,304,904 62.4 16,510,344
2022 15,198,096 57.0 11,470,432 43.0 26,668,528
2023
Source: Town of Mammoth Lakes
(1) TOT revenues were affected in fiscal years 2020 and 2021 by the COIVD 19 pandemic.

Note: Totals do not include Violation, Penalties or Interest.

Top TOT Generators. The following table shows the top twenty major generators of TOT Revenue for fiscal year 2022-23, accounting for approximately _____% of total TOT Revenue as indicated. Village Lodging, Intrawest Hospitality, Mammoth Reservations and Mammoth Mountain Inn each generate more than 5% of the total TOT revenues and are all further described below.

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Table 8

TOWN OF MAMMOTH LAKES
TOP 20 TOT REVENUE GENERATORS
Fiscal Year 2022-23
% of
TOT Total TOT
Business Name Revenues Revenues

1. 2.

3. 4.

5. 6.

7. 8.

9. 10.

11. 12.

13. 14.

15. 16.

17. 18.

19. 20.

Total Top 20
Source: Town of Mammoth Lakes
Village Lodging. The Village Lodging is operated by Mammoth Hospitality Management, LLC, which is made up of the partnership between Intrawest Hospitality Management, LLC and MMSA, LLC with MMSA, LLC acting as the managing partner. The Village Lodge was constructed from 2003-2005 and has 204 total rooms, all of which are under a rental agency agreement with Mammoth Hospitality Management, LLC. The units consist of 8 studios, 91 one bedrooms, 89 two bedrooms and 16 three bedrooms.

Westin Monache Intrawest, Intrawest Hospitality Management, Inc. The Westin Monache is a franchise property with licensing through Marriott Hotels that was built from 2006-2007. The property is co-owned by partners, Mammoth Mountain Ski Area (MMSA) and Intrawest Hospitality Management, LLC. Intrawest Ski Company conducts the Westin’s daily operations. The 315,000 square foot property boasts 230 suites, 208 of which are on the in-house rental program. The units consist of 100 studios, 69 one bedrooms, 38 two bedrooms, 4 one bedrooms with dens, 16 two bedrooms with dens and 3 luxury 2 bedrooms.

Mammoth Hospitality Management, LLC. Mammoth Hospitality Management, LLC is a partnership between Intrawest Hospitality Management, LLC and MMSA, LLC with MMSA acting as the managing partner. Mammoth Hospitality Management remits revenues for Juniper Springs Resort, which consists of three complexes, Juniper Springs Lodge, Sunstone Lodge and Eagle Run Townhomes. The complexes were

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constructed from 1999-2003. Juniper Springs Lodge has 171 total units, with 12 studios, 83 one bedrooms, 73 two bedrooms and 3 three bedrooms. Sunstone is made up of 77 units with 24 one bedrooms, 46 two bedrooms and 7 three bedrooms. Eagle Run Townhomes has 36 units, with 22 two bedrooms, and 14 three bedrooms. All units are under a rental agency agreement with Mammoth Hospitality Management, LLC.

Mammoth Mountain Inn. The Mammoth Mountain Inn was originally constructed in 1957. The property operates 217 units with, 95 standard, 68 deluxe, 6 studio, 19 one bedrooms, 13 two bedrooms, 13 two bedrooms with loft, 3 three bedrooms. The property is owned and operated by MMSA, LLC.

Property Taxes
Under Proposition 13, an amendment to the California Constitution adopted in 1978 that added Article XIIIA of the California Constitution, the county assessor’s valuation of real property is established as shown on the Fiscal Year 1975-76 tax bill, or, thereafter, as the appraised value of real property when purchased, newly constructed, or a change in ownership has occurred. Assessed value of property may be increased annually to reflect inflation at a rate not to exceed 2% per year or reduced to reflect a reduction in the consumer price index or comparable data for the area under taxing jurisdiction or in the event of declining property value caused by substantial damage, destruction, market forces or other factors. As a result of these rules, real property that has been owned by the same taxpayer for many years can have an assessed value that is much lower than that of similar properties more recently sold and may be lower than its own market value. Likewise, changes in ownership of property and reassessment of such property to market value commonly will lead to increases in aggregate assessed value even when the rate of inflation or consumer price index would not permit the full 2% increase on any property that has not changed ownership.

Taxes are levied by the County Assessor for each fiscal year on taxable real and personal property which is situated in the County as of the preceding January 1. Real property which changes ownership or is newly constructed is revalued at the time the change in ownership occurs or the new construction is completed. The current year property tax rate will be applied to the reassessment, and the taxes will then be adjusted by a proration factor to reflect the portion of the remaining tax year for which taxes are due.

The Town receives a share of property tax revenues for real property located within the Town but may receive a lower portion of revenues within former redevelopment project areas. State law exempts $7,000 of the assessed valuation of an owner-occupied principal residence. This exemption does not result in any loss of revenue to local agencies since an amount equivalent to the taxes that would have been payable on such exempt values is supplemented by the State.

For assessment and tax collection purposes, property is classified either as “secured” or “unsecured,” and is listed accordingly on separate parts of the assessment roll. The “secured roll” is that part of the assessment roll containing State-assessed property and property (real or personal) for which there is a lien on real property sufficient, in the opinion of the county assessor, to secure payment of the taxes. All other property is “unsecured,” and is assessed on the “unsecured roll.” Secured property assessed by the SBE is commonly identified for taxation purposes as “utility” property.

Property taxes on the secured roll are due in two installments, on November 1 and February 1 of each fiscal year, and if unpaid become delinquent on December 10 and April 10, respectively. A penalty of 10% attaches immediately to any delinquent payment. Property on the secured roll, with respect to which taxes are delinquent, becomes tax defaulted on or about June 30 of the fiscal year. Such property may thereafter be redeemed by payment of delinquent taxes and the delinquency penalty, plus costs and

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prepayment penalty of one and one-half percent per month to the time of prepayment. If taxes are unpaid for a period of five years or more, the property is subject to sale by the county treasurer.

Property taxes on the unsecured roll are due as of the January 1 lien date and become delinquent, if unpaid, on August 31. A 10% penalty attaches to delinquent unsecured taxes. If unsecured taxes are unpaid at 5 p.m. on October 31, an additional penalty of one and one-half percent per month attaches to such taxes beginning the second month after the delinquent date, and on the first day of each month until paid. A county has four ways of collecting delinquent unsecured personal property taxes: (1) bringing a civil action against the taxpayer; (2) filing a certificate in the office of the County Clerk specifying certain facts in order to obtain a lien on certain property of the taxpayer; (3) filing a certificate of delinquency for record in the County Clerk and County Recorder’s office in order to obtain a lien on certain property of the taxpayer; and (4) seizing and selling personal property, improvements, or possessory interests belonging or assessed to the delinquent taxpayer.

Teeter Plan
The Board of Supervisors of the County has approved the implementation of the Alternative Method of Distribution of Tax Levies and Collections and of Tax Sale Proceeds (the “Teeter Plan”), as provided for in section 4701 et seq. of the California Revenue and Taxation Code. The Teeter Plan guarantees distribution of 100% of the general taxes levied to the taxing entities within the County, with the County retaining all penalties and interest penalties affixed upon delinquent properties and redemptions of subsequent collections. Under the Teeter Plan, the County apportions secured property taxes on a cash basis to local political subdivisions, including the Town, for which the County acts as the tax-levying or taxcollecting agency. At the conclusion of each fiscal year, the County distributes 100% of any taxes delinquent as of June 30th to the respective taxing entities.

The County cash position is protected by a special fund, known as the “Tax Loss Reserve Fund,” which accumulates moneys from interest and penalty collections. In each fiscal year, the Tax Loss Reserve Fund is required to be funded to the amount of delinquent taxes plus one percent of that year’s tax levy.

Amounts exceeding the amount required to be maintained in the tax loss reserve fund may be credited to the County’s general fund. Amounts required to be maintained in the tax loss reserve fund may be drawn on to the extent of the amount of uncollected taxes credited to each agency in advance of receipt.

The Teeter Plan is to remain in effect unless the County Board orders its discontinuance or unless, prior to the commencement of any fiscal year of the County (which commences on July 1), the County Board receives a petition for its discontinuance joined in by resolutions adopted by at least two-thirds of the participating revenue districts in the County, in which event the County Board is to order discontinuance of the Teeter Plan effective at the commencement of the subsequent fiscal year. The County Board may also, after holding a public hearing on the matter, discontinue the Teeter Plan with respect to any tax levying agency or assessment levying agency in the County if the rate of secured tax delinquency in that agency in any year exceeds 3% of the total of all taxes and assessments levied on the secured roll in that agency. If the Teeter Plan is discontinued in the future, only those secured property taxes actually collected would be allocated to political subdivisions (including the Town) for which the County acts as the tax-levying or taxcollecting agency, but penalties and interest would be credited to the political subdivisions.

The Town is not aware of any petitions for the discontinuance of the Teeter Plan in the County.

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Mammoth Lakes City CouncilFebruary 21, 2024

Mammoth Lakes City Council
February 21, 2024