Ukiah City Council
January 19, 2022

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pledge consisting primarily of base rental payments to be made by the City as rental for certain City-owned property. The obligation principal is payable in annual installments beginning April 1, 2021 ranging from $90,0000 to $175,000 through year 2040. Interest is payable semi-annually on April 1 and October 1 of each year, commencing April 1, 2021, with an interest rate ranging from

3.00 percent to 4.00 percent. The Series 2020A Lease Revenue Bonds were issued to reimburse the City for the cost to purchase the Bank of America building, and to pay the costs associated with renovating the new customer service center and roof replacement project for the museum.

Series 2020B Taxable Lease Revenue Bonds (CalPERS Prepayment Project). Dated December 1, 2020 the original amount of the obligation was $49,875,000 and is secured with a pledge consisting primarily of base rental payments to be made by the City as rental for certain City-owned property. This obligation is shared with business-type funds, with the governmental fund’s share being 65 percent. The obligation principal is payable in annual installments beginning April 1, 2022 ranging from $705,000 to $3,015,000 through year 2049. Interest is payable semi-annually on April 1 and October 1 of each year, commencing October 1, 2021, with an interest rate ranging from 1.37 percent to 4.263 percent. The Series 2020B Taxable Lease Revenue Bonds were issued to refinance a portion of the UAL of the City’s Miscellaneous, Safety Fire, and Safety Police pension plans with CalPERS. [Remainder of Page Intentionally Left Blank]
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OVERLAPPING DEBT OF THE CITY
Direct and Overlapping Bonded Debt
Set forth on the following page is a direct and overlapping debt report for the City (the “Debt Report”) prepared by California Municipal Statistics, Inc. and dated as of November 1, 2021. The Debt Report is included for general information purposes only. The City has not reviewed the Debt Report for completeness or accuracy and makes no representations in connection therewith. The Debt Report generally includes long term obligations sold in the public credit markets by public agencies whose boundaries overlap the boundaries of the City in whole or in part. Such long-term obligations generally are not payable from revenues of the City (except as indicated) nor are they necessarily obligations secured by land within the City. In many cases long-term obligations issued by a public agency are payable from the general fund or other revenues of such public agency. The total 2020-21 assessed valuation of $1,651,248,896 reflected in the Debt Report is provided by California Municipal Statistics, Inc. Neither the City, the Authority nor the Underwriter has verified this information.

TABLE 12
City of Ukiah
Direct and Overlapping Debt Statement
(as of November 1, 2021)
2021-22 Assessed Valuation: $1,651,248,896
OVERLAPPING TAX AND ASSESSMENT DEBT: % Applicable Debt 11/1/21 Mendocino Lake Community College District 13.466% $8,121,272 Ukiah Unified School District 34.004 20,815,424
TOTAL DIRECT AND OVERLAPPING TAX AND ASSESSMENT DEBT $28,936,696 DIRECT AND OVERLAPPING GENERAL FUND DEBT:

Mendocino County Certificates of Participation 12.740% $1,874,054 Mendocino County Pension Obligation Bonds 12.740 4,320,771 Ukiah Unified School District General Fund Obligations 34.004 2,262,386 City of Ukiah General Fund Obligations 100.000 55,918,515(1) TOTAL DIRECT AND OVERLAPPING GENERAL FUND DEBT $64,375,726 OVERLAPPING TAX INCREMENT DEBT (Successor Agency): 100.000% $4,863,469 COMBINED TOTAL DEBT $98,175,891 (2)
Ratios to 2021-22 Assessed Valuation:

Total Overlapping Tax and Assessment Debt ........................1.75% Combined Direct Debt ($55,918,515)...................................3.39% Combined Total Debt..............................................................5.95% Ratios to Redevelopment Successor Agency Incremental Valuation ($758,918,515):

Total Overlapping Tax Increment Debt...................................0.64% ____________________________________
(1) Excludes issue to be sold.
(2) Excludes tax and revenue anticipation notes, enterprise revenue, mortgage revenue and non-bonded capital lease obligations.

Source: California Municipal Statistics, Inc.

Attachment 7

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CONSTITUTIONAL AND STATUTORY

LIMITATIONS ON TAXES AND APPROPRIATIONS
The constitutional and statutory provisions discussed in this section have the potential to affect the ability of the City to levy taxes and spend tax proceeds for operating and other purposes.

Article XIIIA of the State Constitution
Section 1(a) of Article XIIIA of the State Constitution limits the maximum ad valorem tax on real property to 1% of full cash value (as defined in Section 2 of Article XIIIA), to be collected by counties and apportioned according to law. Section 1(b) of Article XIIIA provides that the 1% limitation does not apply to ad valorem taxes to pay interest or redemption charges on (1) indebtedness approved by the voters prior to June 1, 1978 or (2) any bonded indebtedness for the acquisition or improvement of real property approved on or after June 1, 1978, by two thirds of the votes cast by the voters voting on the Proposition. Section 2 of Article XIIIA defines “full cash value” to mean “the county assessor’s valuation of real property as shown on the 1975–76 tax bill under ‘full cash value’ or, thereafter, the appraised value of real property when purchased, newly constructed, or a change in ownership has occurred after the 1975 assessment.” The full cash value may be adjusted annually to reflect inflation at a rate not to exceed 2% per year, or to reflect a reduction in the consumer price index or comparable data for the area under taxing jurisdiction or reduced in the event of declining property value caused by substantial damage, destruction or other factors. Legislation enacted by the State Legislature to implement Article XIIIA provides that notwithstanding any other law, local agencies may not levy any ad valorem property tax except to pay debt service on indebtedness approved by the voters as described above.

The voters of the State subsequently approved various measures that further amended Article XIIIA. One such amendment generally provides that the purchase or transfer of (i) real property between spouses or (ii) the principal residence and the first $1,000,000 of the full cash value of other real property between parents and children, does not constitute a “purchase” or “change of ownership” triggering reassessment under Article XIIIA. This amendment could serve to reduce the property-tax revenues of the City. Other amendments permitted the State Legislature to allow persons over 55 or “severely disabled homeowners” who sell their residences and buy or build another of equal or lesser value within two years in the same county, to transfer the old residence’s assessed value to the new residence.

In the November 1990 election, the voters approved the amendment of Article XIIIA to permit the State Legislature to exclude from the definition of “newly constructed” the construction or installation of seismic retrofitting improvements or improvements utilizing earthquake hazard mitigation technologies constructed or installed in existing buildings after November 6, 1990.

Article XIIIA has also been amended to permit reduction of the “full cash value” base in the event of declining property values caused by damage, destruction or other factors, provided that there would be no increase in the “full cash value” base in the event of reconstruction of property damaged or destroyed in a disaster.

Article XIIIB of the State Constitution
Article XIIIB of the State Constitution limits the annual appropriations of the State and of any city, county, school district, special district, authority or other political subdivision of the State to the appropriations limit for the prior Fiscal Year, as adjusted for changes in the cost of living, population and services for which the fiscal responsibility is shifted to or from the governmental Attachment 7

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entity. The “base year” for establishing this appropriations limit is the 1978–79 Fiscal Year. The appropriations limit may also be adjusted in emergency circumstances, subject to limitations.

Appropriations of an entity of local government subject to Article XIIIB generally include authorizations to expend during a Fiscal Year the “proceeds of taxes” levied by or for the entity, exclusive of certain State subventions, refunds of taxes, and benefit payments from retirement, unemployment insurance and disability insurance funds. “Proceeds of taxes” include but are not limited to, all tax revenues, certain State subventions received by the local governmental entity and the proceeds to the local governmental entity from (1) regulatory licenses, user charges, and user fees (to the extent that such proceeds exceed the cost of providing the service or regulation) and (2) the investment of tax revenues. Article XIIIB provides that if a governmental entity’s revenues in any year exceed the amounts permitted to be spent, the excess must be returned by revising tax rates or fee schedules over the subsequent two fiscal years.

Article XIIIB does not limit the appropriation of moneys to pay debt service on indebtedness existing or authorized as of January 1, 1979, or for bonded indebtedness approved thereafter by a vote of the electors of the issuing entity at an election held for that purpose, or appropriations for certain other limited purposes. Furthermore, Article XIIIB was amended in 1990 to exclude from the appropriations limit “all qualified capital outlay projects, as defined by the Legislature” from proceeds of taxes. The Legislature has defined “qualified capital outlay project” to mean a fixed asset (including land and construction) with a useful life of 10 or more years and a value which equals or exceeds $100,000. As a result of this amendment, the appropriations to pay the lease payments on the City’s long term General Fund lease obligations are generally excluded from the City’s appropriations limit. The City has never exceeded its appropriations limit.

Articles XIIIC and XIIID of the State Constitution
General. On November 5, 1996, the voters of the State approved Proposition 218, known as the “Right to Vote on Taxes Act.” Proposition 218 adds Articles XIIIC and XIIID to the California Constitution and contains a number of interrelated provisions affecting the ability of the City to levy and collect both existing and future taxes, assessments, fees and charges.

On November 2, 2010, California voters approved Proposition 26, entitled the “Supermajority Vote to Pass New Taxes and Fees Act.” Section 1 of Proposition 26 declares that Proposition 26 is intended to limit the ability of the State Legislature and local government to circumvent existing restrictions on increasing taxes by defining the new or expanded taxes as “fees.” Proposition 26 amended Articles XIIIA and XIIIC of the State Constitution. The amendments to Article XIIIA limit the ability of the State Legislature to impose higher taxes (as defined in Proposition 26) without a two-thirds vote of the Legislature. The amendments to Article XIIIC define “taxes” that are subject to voter approval as “any levy, charge, or exaction of any kind imposed by a local government,” with certain exceptions.

Taxes. Article XIIIC requires that all new local taxes be submitted to the electorate before they become effective. Taxes for general governmental purposes of the City (“general taxes”) require a majority vote; taxes for specific purposes (“special taxes”), even if deposited in the City’s General Fund, require a two-thirds vote.

Property-Related Fees and Charges. Article XIIID also adds several provisions making it generally more difficult for local agencies to levy and maintain property-related fees, charges, and assessments for municipal services and programs. These provisions include, among other Attachment 7

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things, (i) a prohibition against assessments which exceed the reasonable cost of the proportional special benefit conferred on a parcel, (ii) a requirement that assessments must confer a “special benefit,” as defined in Article XIIID, over and above any general benefits conferred, (iii) a majority protest procedure for assessments which involves the mailing of notice and a ballot to the record owner of each affected parcel, a public hearing and the tabulation of ballots weighted according to the proportional financial obligation of the affected party, and (iv) a prohibition against fees and charges which are used for general governmental services, including police, fire or library services, where the service is available to the public at large in substantially the same manner as it is to property owners.

Reduction or Repeal of Taxes, Assessments, Fees and Charges. Article XIIIC also removes limitations on the initiative power in matters of reducing or repealing local taxes, assessments, fees or charges. No assurance can be given that the voters of the City will not, in the future, approve an initiative or initiatives which reduce or repeal local taxes, assessments, fees or charges currently comprising a substantial part of the City’s General Fund. If such repeal or reduction occurs, the City’s ability to pay debt service on the Bonds could be adversely affected.

Burden of Proof. Article XIIIC provides that local government “bears the burden of proving by a preponderance of the evidence that a levy, charge, or other exaction is not a tax, that the amount is no more than necessary to cover the reasonable costs of the governmental activity, and that the manner in which those costs are allocated to a payor bear a fair or reasonable relationship to the payor’s burdens on, or benefits received from, the governmental activity.” Similarly, Article XIIID provides that in “any legal action contesting the validity of a fee or charge, the burden shall be on the agency to demonstrate compliance” with Article XIIID.

Judicial Interpretation of Proposition 218. The interpretation and application of Articles XIIIC and XIIID will ultimately be determined by the courts, and it is not possible at this time to predict with certainty the outcome of such determination.

Impact on City’s General Fund. The City does not believe that any material source of General Fund revenue is subject to challenge under Proposition 218 or Proposition 26.

The approval requirements of Articles XIIIC and XIIID reduce the flexibility of the City to raise revenues for the General Fund, and no assurance can be given that the City will be able to impose, extend or increase the taxes, fees, charges or taxes in the future that it may need to meet increased expenditure needs.

Proposition 1A; Proposition 22
Proposition 1A. Proposition 1A, proposed by the Legislature in connection with the State’s Fiscal Year 2004-05 Budget, approved by the voters in November 2004 and generally effective in Fiscal Year 2006-07, provided that the State may not reduce any local sales tax rate, limit existing local government authority to levy a sales tax rate or change the allocation of local sales tax revenues, subject to certain exceptions. Proposition 1A generally prohibited the State from shifting to schools or community colleges any share of property tax revenues allocated to local governments for any Fiscal Year, as set forth under the laws in effect as of November 3, 2004. Any change in the allocation of property tax revenues among local governments within a county had to be approved by two-thirds of both houses of the Legislature.

Proposition 22. Proposition 22, entitled “The Local Taxpayer, Public Safety and Transportation Protection Act,” was approved by the voters of the State in November 2010.

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Proposition 22 eliminates or reduces the State’s authority to (i) temporarily shift property taxes from cities, counties and special districts to schools, (ii) use vehicle license fee revenues to reimburse local governments for State-mandated costs (the State will have to use other revenues to reimburse local governments), (iii) redirect property tax increment from redevelopment agencies to any other local government, (iv) use State fuel tax revenues to pay debt service on State transportation bonds, or (v) borrow or change the distribution of State fuel tax revenues.

Unitary Property
AB 454 (Chapter 921, Statutes of 1986) provides that revenues derived from most utility property assessed by the State Board of Equalization (“Unitary Property”), commencing with the 1988–89 Fiscal Year, are allocated as follows: (i) each jurisdiction will receive up to 102% of its prior year State–assessed revenue; and (ii) if county–wide revenues generated from Unitary Property are less than the previous year’s revenues or greater than 102% of the previous year’s revenues, each jurisdiction will share the burden of the shortfall or benefit of the excess revenues by a specified formula. This provision applies to all Unitary Property except railroads, whose valuation will continue to be allocated to individual tax rate areas.

The provisions of AB 454 do not constitute an elimination of the assessment of any State– assessed properties nor a revision of the methods of assessing utilities by the State Board of Equalization. Generally, AB 454 allows valuation growth or decline of Unitary Property to be shared by all jurisdictions in a county.

Possible Future Initiatives
Article XIIIA, Article XIIIB and Propositions 218, 26, IA and 22 were each adopted as measures that qualified for the ballot pursuant to the State’s initiative process. From time to time, other initiative measures could be adopted, further affecting the City’s revenues or its ability to expend revenues.

BOND OWNERS’ RISKS
The following describes certain special considerations and risk factors affecting the payment of and security for the Bonds. The following discussion is not meant to be an exhaustive list of the risks associated with the purchase of any Bonds and does not necessarily reflect the relative importance of the various risks. Potential investors in the Bonds are advised to consider the following special factors along with all other information in this Official Statement in evaluating the Bonds. There can be no assurance that other considerations will not materialize in the future.

No Pledge of Taxes
General. The obligation of the City to pay the Lease Payments and Additional Rental Payments does not constitute an obligation of the City for which the City is obligated to levy or pledge any form of taxation or for which the City has levied or pledged any form of taxation. The obligation of the City to pay Lease Payments and Additional Rental Payments does not constitute a debt or indebtedness of the City, the State of California or any of its political subdivisions within the meaning of any constitutional or statutory debt limitation or restriction.

The City is currently liable on other obligations payable from general revenues, which are described above under “CITY FINANCIAL INFORMATION – Long-Term Obligations Payable Out of General Fund.”
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Limitations on Taxes and Fees. Certain taxes, assessments, fees and charges presently imposed by the City could be subject to the voter approval requirements of Article XIIIC and Article XIIID of the State Constitution. Based upon the outcome of an election by the voters, such fees, charges, assessments and taxes might no longer be permitted to be imposed, or may be reduced or eliminated and new taxes, assessments fees and charges may not be approved.

The City has assessed the potential impact on its financial condition of the provisions of Article XIIIC and Article XIIID of the State Constitution respecting the imposition and increase of taxes, fees, charges and assessments and does not believe that an election by the voters to reduce or eliminate the imposition of certain existing fees, charges, assessments and taxes would substantially affect its financial condition. However, the City believes that if the initiative power was exercised so that all local taxes, assessments, fees and charges that may be subject to Article XIIIC and Article XIIID of the State Constitution are eliminated or substantially reduced, the financial condition of the City, including its General Fund, could be materially adversely affected.

Although the City does not currently anticipate that the provisions of Article XIIIC and Article XIIID of the State Constitution would adversely affect its ability to pay Lease Payments and its other obligations payable from the General Fund, no assurance can be given regarding the ultimate interpretation or effect of Article XIIIC and Article XIIID of the State Constitution on the City’s finances. See “CONSTITUTIONAL AND STATUTORY LIMITATIONS ON TAXES AND APPROPRIATIONS.”
Abatement
In the event of loss or substantial interference in the use and possession by the City of all or any portion of the Leased Property caused by material damage, title defect, destruction to or condemnation of the Leased Property, Lease Payments will be subject to abatement. See “SECURITY FOR THE BONDS – Abatement” herein. In the event that such component of the Leased Property, if damaged or destroyed by an insured casualty, could not be replaced during the period of in which proceeds of rental interruption insurance, if any, will be available in lieu of Lease Payments, or in the event that casualty insurance proceeds or condemnation proceeds are insufficient to provide for complete repair or replacement of such component of the Leased Property or prepayment of the Bonds, there could be insufficient funds to make payments to Owners in full. It is not always possible to predict the circumstances under which abatement of rental may occur. In addition, there is no statute, case or other law specifying how such an abatement of rental should be measured. For example, it is not clear whether fair rental value is established as of commencement of the lease or at the time of the abatement. If the latter, it may be that the value of the Leased Property is substantially higher or lower than its value at the time of issuance of the Bonds. Abatement, therefore, could have an uncertain and material adverse effect on the security for and payment of the Bonds.

If damage, destruction, title defect or eminent domain proceedings with respect to the Leased Property results in abatement of the Lease Payments related to such Leased Property and if such abated Lease Payments, if any, together with moneys from rental interruption or use and occupancy insurance, if any, (in the event of any insured loss due to damage or destruction), and eminent domain proceeds, if any, are insufficient to make all payments of principal and interest with respect to the Bonds during the period that the Leased Property is being replaced, repaired or reconstructed, then all or a portion of such payments of principal and interest may not be made. Reduction in Lease Payments due to abatement as provided in the Lease does not constitute a default thereunder, and no remedy is available to the Bond Owners under the Lease or the Indenture for nonpayment under such circumstances. See APPENDIX C – “SUMMARY OF PRINCIPAL LEGAL DOCUMENTS – The Lease – Abatement of Rental.” Attachment 7

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Limited Recourse on Default; No Right to Repossess; No Acceleration of Lease Payments Failure by the City to make Lease Payments, or failure to pay Additional Rental Payments or to observe and perform any other terms, covenants or conditions contained in the Lease or in the Indenture for a period of 30 days after written notice of such failure and request that it be remedied has been given to the City by the Authority or the Trustee, constitute Events of Default under the Lease. Such events permit the Trustee or the Authority to pursue any and all remedies available. However, notwithstanding anything in the Lease or in the Indenture to the contrary, there is no right under any circumstances to accelerate the Lease Payments or otherwise declare any Lease Payments that are not then in default to be immediately due and payable, nor do the Authority or the Trustee have any right to repossess or relet the Leased Property.

Following an event of default, the Authority or the Trustee may elect either to terminate the Lease and seek to collect damages from the City or to maintain the Lease in effect and seek to collect the Lease Payments as they become due. See “APPENDIX C – SUMMARY OF PRINCIPAL LEGAL DOCUMENTS – The Lease” herein.

In the event of a default, there is no remedy of acceleration of the total Lease Payments due over the term of the Lease and neither the Authority nor the Trustee are empowered to sell or relet the Leased Property and use the proceeds of such sale or reletting to redeem the Bonds or pay debt service with respect thereto. The City will be liable only for Lease Payments on an annual basis and, in the event of a default, the Authority or Trustee would be required to seek a separate judgment each year for that year’s defaulted Lease Payments. Any such suit for money damages would be subject to limitations on legal remedies against municipalities in California, including a limitation on enforcement of judgments against funds of a Fiscal Year other than the Fiscal Year in which the Lease Payments were due and against funds needed to serve the public welfare and interest.

Additional Obligations of the City
General. The City is permitted to enter into other obligations which constitute additional charges against its revenues without the consent of Owners of the Bonds, and may in the future be subject to liabilities payable from the general fund (some of which are described below). To the extent that additional obligations are incurred by (or imposed upon) the City, the funds available to pay Lease Payments may be decreased.

The Lease Payments and other payments due under the Lease (including payment of costs of repair and maintenance of the Leased Property, taxes and other governmental charges levied against the Leased Property) are payable from funds lawfully available to the City. If the amounts that the City is obligated to pay in a fiscal year exceed the City’s revenues for such year, the City may choose to make some payments rather than making other payments, including Lease Payments and Additional Rental Payments, based on the perceived needs of the City. The same result could occur if, because of California Constitutional limits on expenditures, the City is not permitted to appropriate and spend all of its available revenues or is required to expend available revenues to preserve the public health, safety and welfare.

Litigation. The City is subject to litigation arising in the normal course of business. See “LITIGATION.”
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CalPERS Obligations. Many cities and other local agencies in the State have been faced with increased payments due to CalPERS in recent years. The City, like many other cities and local agencies in the State, is responsible for payments to CalPERS for its share of employee pension costs. Amounts owed to CalPERS for pension costs have increased in recent years and are expected to continue to increase, as CalPERS implements changes to its discount rate and other methodologies for calculating pension costs. See “THE CITY – Pension Plans” for additional information on CalPERS.

Default
Whenever any event of default referred to in the Lease happens and continues, the Trustee (as assignee of the Authority) is authorized under the terms of the Lease to exercise any and all remedies available under law or granted under the Lease. See “APPENDIX C – SUMMARY OF PRINCIPAL LEGAL DOCUMENTS” for a detailed description of available remedies in the case of a default under the Lease.

If a default occurs, there is no remedy of acceleration of the total Lease Payments due over the term of the Lease. The Trustee is not empowered to sell the Leased Property and use the proceeds of such sale to prepay the Bonds or pay debt service on the Bonds.

The City will be liable only for Lease Payments on an annual basis and, in the event of a default, the Trustee would be required to seek a separate judgment each year for that year’s defaulted Lease Payments. Any such suit for money damages would be subject to limitations on legal remedies against municipalities in the State, including a limitation on enforcement of judgments against funds of a fiscal year other than the fiscal year in which the Lease Payments were due and against funds needed to serve the public welfare and interest.

Abatement
Under certain circumstances related to damage, destruction, condemnation or title defects which cause a substantial interference with the use and possession of the Leased Property, the City’s obligation to make Lease Payments will be subject to full or partial abatement and could result in the Trustee having inadequate funds to pay the principal and interest on the Bonds as and when due. See “SECURITY FOR THE BONDS – Abatement” and “APPENDIX C – SUMMARY OF PRINCIPAL LEGAL DOCUMENTS.”
Although the City is required under the Lease to maintain property and liability insurance with respect to the Leased Property, the required insurance coverage is subject to certain conditions and restrictions. See “SECURITY FOR THE BONDS – Property Insurance.” [[[The City is not required to maintain rental interruption insurance to thereby generate available moneys to make debt service payments on the Bonds during any period of abatement.]]] Sales Taxes
Sales tax revenues are typically the biggest source of revenue to the City, behind property taxes. Sales tax revenues are based upon the gross receipts of retail sales of tangible goods and products by retailers with taxable transactions in the City, which could be impacted by a variety of factors.

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For example, before final maturity of the Bonds, the City may enter into an economic recession. In times of economic recession, the gross receipts of retailers often decline, and such a decline would cause the sales tax revenues received by the City to also decline.

In addition, changes or amendments in the laws applicable to the City’s receipt of sales tax revenues, whether implemented by State legislative action or voter initiative, could have an adverse effect on sales tax revenues received by the City. For example, many categories of transactions are exempt from the statewide sales tax, and additional categories could be added in the future. Currently, most sales of food products for human consumption are exempt; this exemption, however, does not apply to liquor or to restaurant meals. The rate of sales tax levied on taxable transactions in the City or the fee charged by the CDTFA for administering the City’s sales tax could also be changed.

Property Taxes
Property taxes are a significant source of General Fund revenue to the City. Certain risks associated with property tax revenues follow.

Levy and Collection. The City does not have any independent power to levy and collect property taxes. Any reduction in the tax rate or the implementation of any constitutional or legislative property tax decrease could reduce the City’s property tax revenues, and accordingly, could have an adverse impact on the ability of the City to make Lease Payments. Likewise, delinquencies in the payment of property taxes could have an adverse effect on the City’s ability to pay principal of and interest on the Bonds when due.

Reduction in Inflationary Rate. Article XIIIA of the California Constitution provides that the full cash value base of real property used in determining assessed value may be adjusted from year to year to reflect the inflationary rate, not to exceed a 2% increase for any given year, or may be reduced to reflect a reduction in the consumer price index or comparable local data.

See “CONSTITUTIONAL AND STATUTORY LIMITATIONS ON TAXES AND APPROPRIATIONS.” Such measure is computed on a calendar year basis. Because Article XIIIA limits inflationary assessed value adjustments to the lesser of the actual inflationary rate or 2%, there have been years in which the assessed values were adjusted by actual inflationary rates, which were less than 2%. Since Article XIIIA was approved, the annual adjustment for inflation has fallen below the 2% limitation a limited number of times.

The City is unable to predict if any adjustments to the full cash value base of real property within the City, whether an increase or a reduction, will be realized in the future.

Appeals of Assessed Values. There are two types of appeals of assessed values that could adversely impact property tax revenues:

Proposition 8 Appeals. Most of the appeals that might be filed in the City would be based on Section 51 of the Revenue and Taxation Code, which requires that for each lien date the value of real property must be the lesser of its base year value annually adjusted by the inflation factor pursuant to Article XIIIA of the State Constitution or its full cash value, taking into account reductions in value due to damage, destruction, depreciation, obsolescence, removal of property or other factors causing a decline in value.

Under California law, property owners may apply for a reduction of their property tax assessment by filing a written application with the appropriate county board of Attachment 7

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equalization or assessment appeals board. In most cases, the appeal is filed because the applicant believes that present market conditions (such as residential home prices) cause the property to be worth less than its current assessed value. These market-driven appeals are known as Proposition 8 appeals.

Any reduction in the assessment ultimately granted as a Proposition 8 appeal applies to the year for which application is made and during which the written application was filed. These reductions are often temporary and are adjusted back to their original values when market conditions improve. Once the property has regained its prior value, adjusted for inflation, it once again is subject to the annual inflationary factor growth rate allowed under Article XIIIA.

Base Year Appeals. A second type of assessment appeal is called a base year appeal, where the property owners challenge the original (basis) value of their property.

Appeals for reduction in the “base year” value of an assessment, if successful, reduce the assessment for the year in which the appeal is taken and prospectively thereafter. The base year is determined by the completion date of new construction or the date of change of ownership. Any base year appeal must be made within four years of the change of ownership or new construction date.

No assurance can be given that property tax appeals in the future will not significantly reduce the City’s property tax revenues.

Natural Calamities
General. Natural disasters, such as seismic events, flooding, landslides or wildfires, could affect economic activity in the City, and could have a negative impact on City finances. There can be no assurance that the occurrence of any natural calamity would not cause substantial interference to and costs for the City or impact the Leased Property.

Seismic. The City is located in a seismically active area of California. If there were to be an occurrence of severe seismic activity in the area of the City, such an occurrence may adversely affect economic activity in the City, and could have a negative impact on City finances. The City could be at risk from strong ground motion and secondary effects related to a seismic event, including ground failure (such as landslide, liquefaction, lateral spreading, lurching and differential settlement) and seismically induced flooding (such as flooding from a tsunami or dam failure).

Wildfires. Although the City is not located within a Fire Hazard Severity Zone as established by CAL FIRE (https://egis.fire.ca.gov/FHSZ), there are areas adjacent to the City that are open space parklands and more susceptible to wildfires. In addition, many areas of northern California have suffered from major wildfires in recent years, including numerous wildfires in northern California in 2020 and in 2021. In addition to their direct impact on health and safety and property damage in California, the smoke from many of these wildfires has impacted the quality of life throughout the region, and the City and may have short-term and future impacts on commercial activity in the City. The fires have been driven in large measure by drought conditions and low humidity. Experts expect that California will continue to be subject to wildfire conditions year over year as a result in changing weather patterns due to climate change.

Droughts. California is subject to droughts from time-to-time. On April 1, 2015, for the first time in California’s history, Governor Edmund G. Brown directed the State Water Resources Control Board to implement mandatory water reductions in cities and towns across California to Attachment 7

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reduce water usage by 25%. Following a wet winter in 2016-17, most of the mandatory water reductions were lifted, only to return again in 2021 following unusually dry years.

Climate Change. City finances may be negatively impacted by climate change. Local impacts of climate change are not definitive, but parcels in the City could experience changes to local and regional weather patterns; increased risk of flooding; and water restrictions. See, for example, the discussions above regarding wildfires and droughts.

COVID-19 Pandemic
The spread of COVID-19 has impacted governments, businesses and people in a manner that is having negative effects on global and local economies. In response to the pandemic, the City took actions to activate its emergency operations center, temporarily close all non-essential City services, introduced teleworking as and where appropriate, implemented daily screening of all employees, and abided by all state and federal guidelines and orders. The City actively monitors the COVID-19 situation in the community and acts swiftly to issue executive orders to mitigate the spread of the virus. Additionally, the City has forged a strong relationship with the Mendocino County Health Department and local medical clinics to ensure timely sharing of information and coordinated responses to issues.

The City continues to monitor the spread of COVID-19 and is working with local, state, and national agencies to address the potential impact of the pandemic upon the City. There can be no assurances that the spread of COVID-19 and/or responses intended to slow the spread of COVID-19 such as declining business and travel activity, will not materially adversely impact the state and national economies and, accordingly, materially adversely impact the financial condition of the City and the City’s General Fund. In addition, the City may experience increased personnel costs and/or reduced revenues due to the COVID-19 situation and the related impact on economic and other activity in and around the City.

Cyber Security
The City, like many other public and private entities, relies on computer and other digital networks and systems to conduct its operations. As a recipient and provider of personal, private or other sensitive electronic information, the City is potentially subject to multiple cyber threats, including without limitation hacking, viruses, ransomware, malware and other attacks. The City maintains insurance coverage for loss resulting from cyber security incidents, however no assurance can be given that the City’s efforts to manage cyber threats and attacks will be successful in all cases, or that any such attack will not materially impact the operations or finances of the City, or the administration of the Bonds. The City is also reliant on other entities and service providers in connection with the administration of the Bonds, including without limitation the County tax collector for the levy and collection of property taxes, the Trustee, and the dissemination agent. No assurance can be given that the City and/or the other entities will not be affected by cyber threats and attacks in a manner that may affect the Bond owners.

Limitations on Remedies Available to Bond Owners
The ability of the City to comply with its covenants under the Lease may be adversely affected by actions and events outside of the control of the City, and may be adversely affected by actions taken (or not taken) by voters, property owners, taxpayers or payers of assessments, fees and charges. See “CONSTITUTIONAL AND STATUTORY LIMITATIONS ON TAXES AND APPROPRIATIONS” above. Furthermore, any remedies available to the owners of the Bonds Attachment 7

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upon the occurrence of an event of default under the Lease or the Indenture are in many respects dependent upon judicial actions, which are often subject to discretion and delay and could prove both expensive and time consuming to obtain.

In addition to the limitations on Bondowner remedies contained in the Lease and the Indenture, the rights and obligations under the Bonds, the Lease and the Indenture may be subject to the following: the United States Bankruptcy Code and applicable bankruptcy, insolvency, reorganization, moratorium, or similar laws relating to or affecting the enforcement of creditors’ rights generally, now or hereafter in effect; usual equity principles which may limit the specific enforcement under State law of certain remedies; the exercise by the United States of America of the powers delegated to it by the Federal Constitution; and the reasonable and necessary exercise, in certain exceptional situations, of the police power inherent in the sovereignty of the State and its governmental bodies in the interest of serving a significant and legitimate public purpose. Bankruptcy proceedings, or the exercise of powers by the federal or state government, if initiated, could subject the Owners of the Bonds to judicial discretion and interpretation of their rights in bankruptcy or otherwise, and consequently may entail risks of delay, limitation or modification of their rights.

The opinion to be delivered by Bond Counsel, concurrently with the issuance of the Bonds, will include a qualification that the rights of the owners of the Bonds and the enforceability of the Bonds and the Indenture, the Lease and the Site Lease may be subject to bankruptcy, insolvency, reorganization, moratorium and other similar laws affecting creditors’ rights heretofore or hereafter enacted and may also be subject to the exercise of judicial discretion in accordance with principles of equity or otherwise in appropriate cases. See “APPENDIX E — FORM OF OPINION OF BOND COUNSEL.”
Secondary Market for Bonds
There can be no guarantee that there will be a secondary market for the Bonds or, if a secondary market exists, that any Bonds can be sold for any particular price. Occasionally, because of general market conditions or because of adverse history or economic prospects connected with a particular issue, secondary marketing practices in connection with a particular issue are suspended or terminated. Additionally, prices of issues for which a market is being made will depend upon then-prevailing circumstances. Such prices could be substantially different from the original purchase price.

TAX MATTERS
Federal Tax Status. In the opinion of Jones Hall, A Professional Law Corporation, San Francisco, California, Bond Counsel, subject, however to the qualifications set forth below, under existing law, the interest on the Bonds is excluded from gross income for federal income tax purposes and such interest is not an item of tax preference for purposes of the federal alternative minimum tax.

The opinions set forth in the preceding paragraph are subject to the condition that the City comply with all requirements of the Internal Revenue Code of 1986, as amended (the “Tax Code”) that must be satisfied subsequent to the issuance of the Bonds in order that the interest thereon be, and continue to be, excludable from gross income for federal income tax purposes. The City has made certain representations and covenants in order to comply with each such requirement.

Inaccuracy of those representations, or failure to comply with certain of those covenants, may Attachment 7

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cause the inclusion of such interest in gross income for federal income tax purposes, which may be retroactive to the date of issuance of the Bonds.

Tax Treatment of Original Issue Discount and Premium. If the initial offering price to the public at which a Bond is sold is less than the amount payable at maturity thereof, then such difference constitutes “original issue discount” for purposes of federal income taxes and State of California personal income taxes. If the initial offering price to the public at which a Bond is sold is greater than the amount payable at maturity thereof, then such difference constitutes “bond premium” for purposes of federal income taxes and State of California personal income taxes.

Under the Tax Code, original issue discount is treated as interest excluded from federal gross income and exempt from State of California personal income taxes to the extent properly allocable to each owner thereof subject to the limitations described in the first paragraph of this section. The original issue discount accrues over the term to maturity of the Bond on the basis of a constant interest rate compounded on each interest or principal payment date (with straight-line interpolations between compounding dates). The amount of original issue discount accruing during each period is added to the adjusted basis of such Bonds to determine taxable gain upon disposition (including sale, redemption, or payment on maturity) of such Bond. The Tax Code contains certain provisions relating to the accrual of original issue discount in the case of purchasers of the Bonds who purchase the Bonds after the initial offering of a substantial amount of such maturity. Owners of such Bonds should consult their own tax advisors with respect to the tax consequences of ownership of Bonds with original issue discount, including the treatment of purchasers who do not purchase in the original offering to the public at the first price at which a substantial amount of such Bonds is sold to the public.

Under the Tax Code, bond premium is amortized on an annual basis over the term of the Bond (said term being the shorter of the Bond’s maturity date or its call date). The amount of bond premium amortized each year reduces the adjusted basis of the owner of the Bond for purposes of determining taxable gain or loss upon disposition. The amount of bond premium on a Bond is amortized each year over the term to maturity of the Bond on the basis of a constant interest rate compounded on each interest or principal payment date (with straight-line interpolations between compounding dates). Amortized Bond premium is not deductible for federal income tax purposes. Owners of premium Bonds, including purchasers who do not purchase in the original offering, should consult their own tax advisors with respect to State of California personal income tax and federal income tax consequences of owning such Bonds.

California Tax Status. In the further opinion of Bond Counsel, interest on the Bonds is exempt from California personal income taxes.

Other Tax Considerations. Current and future legislative proposals, if enacted into law, clarification of the Tax Code or court decisions may cause interest on the Bonds to be subject, directly or indirectly, to federal income taxation or to be subject to or exempted from state income taxation, or otherwise prevent beneficial owners from realizing the full current benefit of the tax status of such interest. The introduction or enactment of any such legislative proposals, clarification of the Tax Code or court decisions may also affect the market price for, or marketability of, the Bonds. It cannot be predicted whether or in what form any such proposal might be enacted or whether, if enacted, such legislation would apply to bonds issued prior to enactment.

The opinions expressed by Bond Counsel are based upon existing legislation and regulations as interpreted by relevant judicial and regulatory authorities as of the date of such Attachment 7

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opinion, and Bond Counsel has expressed no opinion with respect to any proposed legislation or as to the tax treatment of interest on the Bonds, or as to the consequences of owning or receiving interest on the Bonds, as of any future date. Prospective purchasers of the Bonds should consult their own tax advisors regarding any pending or proposed federal or state tax legislation, regulations or litigation, as to which Bond Counsel expresses no opinion.

Owners of the Bonds should also be aware that the ownership or disposition of, or the accrual or receipt of interest on, the Bonds may have federal or state tax consequences other than as described above. Other than as expressly described above, Bond Counsel expresses no opinion regarding other federal or state tax consequences arising with respect to the Bonds, the ownership, sale or disposition of the Bonds, or the amount, accrual or receipt of interest on the Bonds.

CERTAIN LEGAL MATTERS
Jones Hall, A Professional Law Corporation, Bond Counsel, will render an opinion with respect to the validity of the Bonds, the form of which is set forth in “APPENDIX E — FORM OF OPINION OF BOND COUNSEL.” Certain legal matters will also be passed upon for the City and the Authority by Jones Hall, A Professional Law Corporation, as Disclosure Counsel. Certain legal matters will be passed upon for the City by the City Attorney, and for the Underwriter by its counsel, Stradling Yocca Carlson & Rauth, a Professional Corporation.

LITIGATION
Except as may otherwise be set forth in this Official Statement, to the best knowledge of the City, there is no action, suit, proceeding, inquiry or investigation before or by any court or federal, state, municipal or other governmental authority pending and notice of which has been served on and received by the City or, to the knowledge of the City, threatened against or affecting the City or the assets, properties or operations of the City which, if determined adversely to the City or its interests, would have a material and adverse effect upon the consummation of the transactions contemplated by or the validity of the Lease, the Site Lease or the Indenture, or upon the financial condition, assets, properties or operations of the City, and the City is not in default with respect to any order or decree of any court or any order, regulation or demand of any federal, state, municipal or other governmental authority, which default might have consequences that would materially adversely affect the consummation of the transactions contemplated by the Lease, the Site Lease or the Indenture, or the financial conditions, assets, properties or operations of the City, including but not limited to the payment and performance of the City’s obligations under the Lease.

The City is subject to claims, actions, and lawsuits arising in the normal course of business. At this time, the City does not believe any of the lawsuits are likely to be resolved in a manner that would result in liability to the City in excess of its existing insurance coverage.

However, no assurance can be given that an adverse outcome in any pending or future litigation against the City would not result in a material adverse effect upon the financial condition of the City and its ability to pay the Lease Payments securing the Bonds.

Attachment 7

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RATING
S&P Global Ratings (“S&P”), a division of Standard & Poor’s Financial Services LLC has assigned its municipal bond rating of “___” to the Bonds. This rating reflects only the views of S&P, and an explanation of the significance of this rating, and any outlook assigned to or associated with this rating, should be obtained from S&P. Generally, a rating agency bases its rating on the information and materials furnished to it and on investigations, studies and assumptions of its own. The City has provided certain additional information and materials to the rating agency (some of which does not appear in this Official Statement). There is no assurance that this rating will continue for any given period of time or that this rating will not be revised downward or withdrawn entirely by the rating agency, if in the judgment of the rating agency, circumstances so warrant. Any such downward revision or withdrawal of any rating on the Bonds may have an adverse effect on the market price or marketability of the Bonds.

CONTINUING DISCLOSURE
The City will covenant for the benefit of owners of the Bonds to provide certain financial information and operating data by not later than nine months after the end of the City’s fiscal year, or April 1, of each year (based on the City’s current fiscal year-end of June 30), commencing April 1, 2022, with the report for the 2020-21 fiscal year (the “Annual Report”) and to provide notices of the occurrence of certain listed events.

These covenants have been made in order to assist the Underwriter in complying with Securities Exchange Commission Rule 15c2-12(b)(5), as amended (the “Rule”). The specific nature of the information to be contained in the Annual Report or the notices of listed events by the City is set forth in “APPENDIX D – Form of Continuing Disclosure Certificate.” A review of the City’s prior compliance with its continuing disclosure obligations under the Rule reveals that the City did not timely file its audited financial statements and/or annual report information by the due dates for Fiscal Years 2015-16 through 2019-20.

All remedial filings have been made and the City has engaged NHA Advisors LLC to assist with its continuing disclosure obligations under the Rule in the future.

MUNICIPAL ADVISOR
The City and the Authority have retained NHA Advisors LLC, of San Rafael, California, as municipal advisor (the “Municipal Advisor”) in connection with the offering of the Bonds. All financial and other information presented in this Official Statement has been provided by the City and the Authority from their records, except for information expressly attributed to other sources.

The Municipal Advisor takes no responsibility for the accuracy or completeness of the data provided by the City, Authority or others and has not undertaken to make an independent verification or does not assume responsibility for the accuracy, completeness, or fairness of the information contained in this Official Statement. The fee of the Municipal Advisor is contingent upon the successful closing of the Bonds.

Attachment 7

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UNDERWRITING
Piper Sandler & Co., as underwriter (the “Underwriter”), has entered into a Bond Purchase Agreement with the Authority under which it will purchase the Bonds at a purchase price of $________________, which is equal to the par amount of the Bonds, less an Underwriter’s discount of $____________.

The Underwriter will be obligated to take and pay for all of the Bonds if any are taken. The Underwriter intends to offer the Bonds to the public at the offering prices set forth on the inside cover page of this Official Statement. After the initial public offering, the public offering price may be varied from time to time by the Underwriter.

PROFESSIONAL SERVICES
In connection with the issuance of the Bonds, fees payable to the following professionals involved in the offering are contingent upon the issuance and delivery of the Bonds: Jones Hall, A Professional Law Corporation, as Bond Counsel and Disclosure Counsel; NHA Advisors LLC, San Rafael, California, as municipal advisor to the Authority and the City; ____________, ______________, California, as counsel to the Underwriter; and The Bank of New York Mellon Trust Company, N.A., as Trustee.

Attachment 7

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EXECUTION
The execution of this Official Statement and its delivery have been authorized by the Board of the Authority and the City Council of the City.

UKIAH PUBLIC FINANCING AUTHORITY
By:

Executive Director

CITY OF UKIAH
By:

City Manager
Attachment 7

A-1

APPENDIX A

AUDITED FINANCIAL STATEMENTS
FOR FISCAL YEAR ENDING JUNE 30, 2021
Attachment 7

B-1

APPENDIX B

GENERAL INFORMATION ABOUT THE CITY OF UKIAH

AND THE COUNTY OF MENDOCINO
The following information concerning the County of Mendocino (the “County”) and the City of Ukiah (the “City”) is included only for the purpose of supplying general information regarding the area. The Bonds are not a debt of the County, the City, the State of California (the “State”) or any of its political subdivisions, and neither the County, the City, the State nor any of its political subdivisions is liable therefor. The City and the Underwriter take no responsibility for the accuracy or completeness of such information.

General
The City. The City is located in the north central area of the County, approximately 100 miles north of San Francisco and about an hour’s drive from the coastal redwoods and the Mendocino Coast. The City is the largest city in the County and is the County seat. The City was incorporated in 1876 and was the first community in the United States to utilize a Council-Manager form of government. The City Council is made up of five members who set policy and set up the City budget. The City Council appoints a Mayor, City Manager, City Treasurer, City Clerk and members of other commissions.

The County. The County was created in 1850 by the State Legislature and was one of the State’s original 27 counties. Sonoma, Lake, Glenn, Tehama, Trinity and Humboldt counties all border Mendocino County on its inland side. The County spans an area of over 2 million acres, which is approximately 3500 square miles and its coastline runs about 100 miles. Coastal highways 1 and 101, running through the center of the County, are important transportation routes. Smaller country roads connect Mendocino’s five distinct regions, which are the Anderson Valley to the south, South Mendocino coast, North Mendocino coast, Northern Mendocino County and the Russian River Valley to the east. The City of Ukiah is the largest city in the County and is the County seat. The County is legislatively governed by a board of five supervisors, each with a separate district.

The County has nine Indian reservations lying within its borders, the fourth most of any county in the United States (after San Diego County, California; Sandoval County, New Mexico; and Riverside County, California).

Attachment 7

B-2
Population
The following table lists population estimates for the City, the County and the State for the last five years, as of January 1 each year.

CITY OF UKIAH, COUNTY OF MENDOCINO, STATE OF CALIFORNIA Population Estimates
Years 2017 through 2021, as of January 1
Year
City of
Ukiah
Mendocino
County
State of
California
2017 15,937 88,646 39,352,398
2018 16,081 88,542 39,519,535
2019 15,942 88,205 39,605,361
2020 15,951 87,708 39,648,938
2021 15,526 86,669 39,466,855
Source: California Department of Finance, Demographic Research Unit.

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Attachment 7

B-3
Industry and Employment

MENDOCINO COUNTY
Civilian Labor Force, Employment and Unemployment
Calendar Years 2016 through 2020
(March 2020 benchmark)
2016 2017 2018 2019 2020
Civilian Labor Force (1) 39,620 39,560 39,460 38,650 37,020 Employment 37,520 37,760 37,870 37,090 33,720
Unemployment 2,100 1,800 1,590 1,560 3,290
Unemployment Rate 5.3% 4.5% 4.0% 4.0% 8.9%
Wage and Salary Employment:
(2)
Agriculture 1,360 1,380 1,450 1,460 1,410
Mining and Logging 300 330 310 290 270
Construction 1,060 1,220 1,380 1,390 1,320
Manufacturing 2,550 2,540 2,470 2,430 2,360
Wholesale Trade 740 840 810 740 700
Retail Trade 4,730 4,760 4,820 4,810 4,480
Transportation, Warehousing, Utilities 710 710 730 720 840 Information 250 230 230 210 170
Financial Activities 1,050 1,060 1,070 1,050 980
Professional and Business Services 1,670 1,670 1,790 1,860 1,800 Educational and Health Services 5,580 5,750 5,780 5,840 5,530 Leisure and Hospitality 4,410 4,410 4,490 4,360 3,200
Other Services 790 810 810 750 700
Federal Government 280 270 270 270 290
State Government 570 560 580 600 640
Local Government 6,400 6,400 6,320 6,310 5,740
Total all Industries (3) 32,440 32,950 33,290 33,100 30,390 (1) Labor force data is by place of residence; includes self-employed individuals, unpaid family workers, household domestic workers, and workers on strike.
(2) Industry employment is by place of work; excludes self-employed individuals, unpaid family workers, household domestic workers, and workers on strike.
(3) Columns may not sum to totals due to rounding.

Source: State of California Employment Development Department. [Remainder of page intentionally left blank]
Attachment 7

B-4
Principal Employers
The following table lists the principal employers within the City for fiscal year 2019-20.

CITY OF UKIAH
Principal Employers
Fiscal Year 2019-20
Employer Name
No. of
Employees
Adventist Health Ukiah Valley 500-999
City of Ukiah 100-249
Costco Wholesale 100-249
County of Mendocino 1,000-1,250
Dharma Realm Buddhist Association 100-249
Mendocino Community Health 250-499
Mendocino County Office of Education 100-249
Pacific Coast Farm Credit 100-249
Ukiah Valley Medical Center 500-999
Walmart 100-249
Source: City of Ukiah.
[Remainder of page intentionally left blank]
Attachment 7

B-5
The following table lists, in alphabetical order, the largest manufacturing and nonmanufacturing employers within the County as of October 2021.

COUNTY OF MENDOCINO
Major Employers
As of October 2021
(In Alphabetical Order)
Employer Name Location Industry
Adventist Health Howard Meml Willits Hospitals
Adventist Health Mendocino Cst Fort Bragg Hospitals
Adventist Health Ukiah Vly Ukiah Outpatient Services
California Department-Forestry Willits Government Offices-State Costco Wholesale Ukiah Wholesale Clubs
Coyote Valley Casino Redwood Valley Casinos
Dharma Realm Buddhist Assn Ukiah Associations
Fetzer Vineyards Hopland Wineries (mfrs)
Georgia-Pacific Corp Fort Bragg Sawmills (mfrs)
Little River Inn Little River Golf Courses
Mendocino Community Health Ukiah Clinics
Mendocino County Food Stamps Ukiah Government Offices-County Mendocino County Office of Edu Ukiah Boards of Education Mendocino County Sheriff Point Arena Government Offices-County Mendocino County Social Svc Ukiah Government Offices-County Mendocino Redwood Co LLC Calpella Restaurants
Metalfx Inc Willits Sheet Metal Fabricators (mfrs)
Oak Point Ranch Potter Valley Vineyards
Pacific Coast Farm Credit Ukiah Loans-Agricultural
Safeway Fort Bragg Grocers-Retail
Sawmill Ukiah Sawmills & Planing Mills-General (mfrs)
Ukiah City Civic Ctr Ukiah Government Offices-City/Village & Twp Ukiah High School Ukiah Schools
Ukiah Valley Medical Ctr Ukiah Hospitals
Walmart Ukiah Department Stores
Source: State of California Employment Development Department, extracted from The America’s Labor Market Information System (ALMIS) Employer Database, 2022 1st edition.
[Remainder of page intentionally left blank]
Attachment 7

B-6
Effective Buying Income
“Effective Buying Income” is defined as personal income less personal tax and nontax payments, a number often referred to as “disposable” or “after-tax” income. Personal income is the aggregate of wages and salaries, other labor-related income (such as employer contributions to private pension funds), proprietor’s income, rental income (which includes imputed rental income of owner-occupants of non-farm dwellings), dividends paid by corporations, interest income from all sources, and transfer payments (such as pensions and welfare assistance).

Deducted from this total are personal taxes (federal, state and local), nontax payments (fines, fees, penalties, etc.) and personal contributions to social insurance. According to U.S. government definitions, the resultant figure is commonly known as “disposable personal income.” The following table summarizes the total effective buying income for the City, the County, the State, and the United States for the period 2018 through 2022.

CITY OF UKIAH, MENDOCINO COUNTY,

STATE OF CALIFORNIA AND UNITED STATES

EFFECTIVE BUYING INCOME
As of January 1, 2018 through 2022
Year Area
Total Effective
Buying Income
(000’s Omitted)
Median Household
Effective
Buying Income
2018 City of Ukiah $304,459 $37,984
Mendocino County 1,833,429 40,496
California 1,113,648,181 59,646
United States 8,640,770,229 50,735
2019 City of Ukiah $341,372 $39,976
Mendocino County 1,958,994 42,231
California 1,183,264,399 62,637
United States 9,017,967,563 52,841
2020 City of Ukiah $412,016 $47,335
Mendocino County 2,374,052 48,768
California 1,243,564,816 65,870
United States 9,487,165,436 55,303
2021 City of Ukiah $366,626 $45,764
Mendocino County 2,149,946 46,801
California 1,290,894,604 67,956
United States 9,809,944,764 56,790
2022 City of Ukiah $416,520 $55,457
Mendocino County 2,538,336 55,971
California 1,452,426,153 77,058
United States 11,208,582,541 64,448
Source: The Nielsen Company (US), Inc for year 2018; Claritas, LLC for 2019 through 2022.

Attachment 7

B-7
Commercial Activity
A summary of historic taxable sales within the City and the County during the past five years in which data is available is shown in the following tables.

Total taxable sales during the first quarter of calendar year 2021 in the City were reported to be $143,482,524, a 13.16% increase over the total taxable sales of $126,801,383 reported during the first quarter of calendar year 2020.

CITY OF UKIAH
Taxable Retail Sales
Number of Permits and Valuation of Taxable Transactions Calendar Years 2016 through 2020 (Dollars in Thousands) Retail Stores Total All Outlets
Number
of Permits
Taxable
Transactions
Number
of Permits
Taxable
Transactions
2016 478 $415,019 775 $467,938
2017 469 413,944 774 465,072
2018 457 432,223 803 485,110
2019 455 491,185 807 548,622
2020 461 520,425 814 582,571
Source: State Department of Tax and Fee Administration.

Total taxable sales during the first quarter of calendar year 2021 in the County were reported to be $434,304,382, a 20.66% increase over the total taxable sales of $359,950,406 reported during the first quarter of calendar year 2020.

COUNTY OF MENDOCINO
Taxable Retail Sales
Number of Permits and Valuation of Taxable Transactions Calendar Years 2016 through 2020 (Dollars in Thousands) Retail Stores Total All Outlets
Number
of Permits
Taxable
Transactions
Number
of Permits
Taxable
Transactions
2016 2,489 $1,075,436 4,145 $1,424,943
2017 2,529 1,111,403 4,460 1,467,165
2018 2,492 1,150,832 4,796 1,490,850
2019 2,472 1,245,092 5,046 1,602,968
2020 2,567 1,350,609 5,232 1,728,692
Source: State Department of Tax and Fee Administration.

Attachment 7

B-8
Construction Activity
Construction activity in the City and the County for the past five years for which data is available is shown in the following tables.

CITY OF UKIAH
Building Permit Valuation
For Calendar Years 2016 through 2020
(Dollars in Thousands)(1)
2016 2017 2018 2019 2020
Permit Valuation
New Single-family $2,230.4 $3,582.6 $4,794.6 $2,054.1 $2,340.8 New Multi-family 8,400.0 0.0 0.0 0.0 3,526.4
Res. Alterations/Additions 850.3 1,133.6 10,268.4 627.8 991.5 Total Residential 11,480.7 4,716.2 15,063.0 2,681.9 6,858.7 New Commercial 654.0 3,403.7 5,699.5 331.6 1,973.3
New Industrial 78.2 0.0 0.0 14.6 0.0
New Other 667.0 505.1 1,877.1 244.9 700.0
Com. Alterations/Additions 726.4 726.8 845.0 608.0 613.1 Total Nonresidential 2,125.6 4,635.6 8,421.6 1,199.1 3,286.4 New Dwelling Units
Single Family 13 16 25 11 9
Multiple Family 48 0 0 0 240
TOTAL 61 16 25 11 249
(1) Totals may not foot due to rounding.

Source: Construction Industry Research Board, Building Permit Summary.

MENDOCINO COUNTY
Building Permit Valuation
For Calendar Years 2016 through 2020
(Dollars in Thousands)(1)
2016 2017 2018 2019 2020
Permit Valuation
New Single-family $11,628.5 $17,779.4 $29,034.7 $22,296.2 $20,148.2 New Multi-family 8,400.0 224.9 0.0 1,630.7 3,526.4
Res. Alterations/Additions 10,523.7 7,241.9 985.7 9,095.0 9,570.8 Total Residential 30,552.2 25,246.2 39,303.1 33,021.9 33,245.4 New Commercial 3,937.5 14,404.3 4,248.8 17,698.1 20,058.6 New Industrial 78.2 775.3 5.0 14.6 20,158.6
New Other 4,008.9 2,859.7 20,105.1 5,738.3 4,898.0
Com. Alterations/Additions 6,652.3 2,240.8 7,387.6 8,771.3 5,546.0 Total Nonresidential 14,676.9 20,280.1 31,746.5 32,222.3 50,661.2 New Dwelling Units
Single Family 70 91 157 137 102
Multiple Family 48 2 0 8 240
TOTAL 118 93 157 145 342
(1) Totals may not foot due to rounding.

Source: Construction Industry Research Board, Building Permit Summary.

Attachment 7

C-1

APPENDIX C

SUMMARY OF CERTAIN PROVISIONS OF

PRINCIPAL LEGAL DOCUMENTS
Attachment 7

D-1

APPENDIX D

FORM OF CONTINUING DISCLOSURE CERTIFICATE
$____________

UKIAH PUBLIC FINANCING AUTHORITY
Lease Revenue Bonds, Series 2022
(Capital Projects)
This Continuing Disclosure Certificate (this “Disclosure Certificate”) is executed and delivered by the City of Ukiah (the “City”) in connection with the issuance by the Authority of the bonds captioned above (the “Bonds”). The Bonds are being issued under an Indenture of Trust dated as of February 1, 2022 (the “Indenture”), by and between the Authority and The Bank of New York Mellon Trust Company, N.A., as trustee (the “Trustee”). The City hereby covenants and agrees as follows:

Section 1. Purpose of the Disclosure Certificate. This Disclosure Certificate is being executed and delivered by the City for the benefit of the holders and beneficial owners of the Bonds and in order to assist the Participating Underwriter in complying with S.E.C. Rule 15c2- 12(b)(5).

Section 2. Definitions. In addition to the definitions set forth above and in the Indenture, which apply to any capitalized term used in this Disclosure Certificate unless otherwise defined in this Section, the following capitalized terms shall have the following meanings:
“Annual Report” means any Annual Report provided by the City pursuant to, and as described in, Sections 3 and 4 of this Disclosure Certificate. “Annual Report Date” means April 1 of each year.
“Dissemination Agent” means NHA Advisors LLC, or any successor Dissemination Agent designated in writing by the City and which has filed with the City a written acceptance of such designation.
“Listed Events” means any of the events listed in Section 5(a) of this Disclosure Certificate. “MSRB” means the Municipal Securities Rulemaking Board, which has been designated by the Securities and Exchange Commission as the sole repository of disclosure information for purposes of the Rule, or any other repository of disclosure information that may be designated by the Securities and Exchange Commission as such for purposes of the Rule in the future. “Official Statement” means the final official statement, executed by the City and the Authority in connection with the issuance of the Bonds. “Participating Underwriter” means Oppenheimer & Co. Inc., the original underwriter of the Bonds required to comply with the Rule in connection with offering of the Bonds. “Rule” means Rule 15c2-12(b)(5) adopted by the Securities and Exchange Commission under the Securities Exchange Act of 1934, as the same may be amended from time to time.

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Section 3. Provision of Annual Reports.
(a) The City shall, or shall cause the Dissemination Agent to, not later than the Annual Report Date, commencing April 1, 2023, with the report for Fiscal Year 2021-22, provide to the MSRB, in an electronic format as prescribed by the MSRB, an Annual Report that is consistent with the requirements of Section 4 of this Disclosure Certificate. Not later than 15 Business Days prior to the Annual Report Date, the City shall provide the Annual Report to the Dissemination Agent (if other than the City). If by 15 Business Days prior to the Annual Report Date the Dissemination Agent (if other than the City) has not received a copy of the Annual Report, the Dissemination Agent shall contact the City to determine if the City is in compliance with the previous sentence. The Annual Report may be submitted as a single document or as separate documents comprising a package, and may include by reference other information as provided in Section 4 of this Disclosure Certificate; provided that the audited financial statements of the City may be submitted separately from the balance of the Annual Report, and later than the Annual Report Date, if not available by that date. If the City’s Fiscal Year changes, it shall give notice of such change in the same manner as for a Listed Event under Section 5(b). The City shall provide a written certificate with each Annual Report furnished to the Dissemination Agent to the effect that such Annual Report constitutes the Annual Report required to be furnished by the City hereunder.
(b) If the City does not provide (or cause the Dissemination Agent to provide) an Annual Report by the Annual Report Date, the City shall provide (or cause the Dissemination Agent to provide) in a timely manner to the MSRB, in an electronic format as prescribed by the MSRB, a notice in substantially the form attached as Exhibit A. (c) With respect to each Annual Report, the Dissemination Agent shall:
(i) determine each year prior to the Annual Report Date the then-applicable rules and electronic format prescribed by the MSRB for the filing of annual continuing disclosure reports; and
(ii) if the Dissemination Agent is other than the City, file a report with the City certifying that the Annual Report has been provided pursuant to this Disclosure Certificate, and stating the date it was provided.

Section 4. Content of Annual Reports. The City’s Annual Report shall contain or incorporate by reference the following:
(a) Audited Financial Statements of the City prepared in accordance with Generally Accepted Accounting Principles as promulgated to apply to governmental entities from time to time by the Governmental Accounting Standards Board. If the City’s audited financial statements are not available by the Annual Report Date, the Annual Report shall contain unaudited financial statements in a format similar to the financial statements contained in the final Official Statement, and the audited financial statements shall be filed in the same manner as the Annual Report when they become available. (b) To the extent not contained in the audited financial statements filed pursuant to the preceding clause (a), the Annual Report shall contain information showing:
(i) the principal amount of Bonds outstanding as of June 30 preceding the filing of the Annual Report;
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(ii) the balance in each fund under the Indenture as of June 30 preceding the filing of the Annual Report; and
(iii) updates to the substance of the information contained in the following tables in the Official Statement:
(A) General Fund Revenues, Expenditures and Fund Balances (most recent adopted budget), substantially in the form of Table 1; (B) General Fund Revenues, Expenditures and Fund Balances (most recently completed fiscal year audited), substantially in the form of Table 3;
(C) General Fund Tax Revenues by Source, substantially in the form of Table 4;
(D) Taxable Transactions, substantially in the form of Table 6; (E) Assessed Value of Taxable Property, substantially in the form of Table 7; and
(F) Top Twenty Local Secured Taxpayers, substantially in the form of Table 9.
(c) In addition to any of the information expressly required to be provided under this Disclosure Certificate, the City shall provide such further material information, if any, as may be necessary to make the specifically required statements, in the light of the circumstances under which they are made, not misleading.
(d) Any or all of the items listed above may be included by specific reference to other documents, including official statements of debt issues of the City or related public entities, which are available to the public on the MSRB’s Internet web site or filed with the Securities and Exchange Commission. The City shall clearly identify each such other document so included by reference.

Section 5. Reporting of Significant Events.
(a) The City shall give, or cause to be given, notice of the occurrence of any of the following Listed Events with respect to the Bonds:
(1) Principal and interest payment delinquencies.
(2) Non-payment related defaults, if material.
(3) Unscheduled draws on debt service reserves reflecting financial difficulties. (4) Unscheduled draws on credit enhancements reflecting financial difficulties. (5) Substitution of credit or liquidity providers, or their failure to perform. (6) Adverse tax opinions, the issuance by the Internal Revenue Service of proposed or final determinations of taxability, Notices of Proposed Issue (IRS Form 5701- TEB) or other material notices or determinations with respect to the tax status of the security, or other material events affecting the tax status of the security. (7) Modifications to rights of security holders, if material. (8) Bond calls, if material, and tender offers.

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(9) Defeasances.
(10) Release, substitution, or sale of property securing repayment of the securities, if material.
(11) Rating changes.
(12) Bankruptcy, insolvency, receivership or similar event of the City or other obligated person.
(13) The consummation of a merger, consolidation, or acquisition involving the City or an obligated person, or the sale of all or substantially all of the assets of the City or an obligated person (other than in the ordinary course of business), the entry into a definitive agreement to undertake such an action, or the termination of a definitive agreement relating to any such actions, other than pursuant to its terms, if material.
(14) Appointment of a successor or additional trustee or the change of name of a trustee, if material.
(15) Incurrence of a financial obligation of the City, if material, or agreement to covenants, events of default, remedies, priority rights, or other similar terms of a financial obligation of the City, any of which affect security holders, if material (for definition of “financial obligation,” see clause (f)).
(16) Default, event of acceleration, termination event, modification of terms, or other similar events under the terms of a financial obligation of the City, any of which reflect financial difficulties (for definition of “financial obligation,” see clause (f)). (b) Whenever the City obtains knowledge of the occurrence of a Listed Event, the City shall, or shall cause the Dissemination Agent (if not the City) to, file a notice of such occurrence with the MSRB, in an electronic format as prescribed by the MSRB, in a timely manner not in excess of 10 business days after the occurrence of the Listed Event. Notwithstanding the foregoing, notice of Listed Events described in subsection (a)(8) above need not be given under this subsection any earlier than the notice (if any) of the underlying event is given to holders of affected Bonds under the Indenture.
(c) The City acknowledges that the events described in subparagraphs (a)(2), (a)(7), (a)(8) (if the event is a bond call), (a)(10), (a)(13), (a)(14), and (a)(15) of this Section 5 contain the qualifier “if material” and that subparagraph (a)(6) also contains the qualifier “material” with respect to certain notices, determinations or other events affecting the tax status of the Bonds.

The City shall cause a notice to be filed as set forth in paragraph (b) above with respect to any such event only to the extent that it determines the event’s occurrence is material for purposes of U.S. federal securities law. Whenever the City obtains knowledge of the occurrence of any of these Listed Events, the City will as soon as possible determine if such event would be material under applicable federal securities law. If such event is determined to be material, the City will cause a notice to be filed as set forth in paragraph (b) above. (d) For the purposes of the event identified in (a)(12) above, the event is considered to occur when any of the following occur: the appointment of a receiver, fiscal agent or similar officer for an obligated person in a proceeding under the U.S. Bankruptcy Code or in any other proceeding under state or federal law in which a court or governmental authority has assumed jurisdiction over substantially all of the assets or business of the obligated person, or if such jurisdiction has been assumed by leaving the existing governmental body and officials or officers in possession but subject to the supervision and orders of a court or governmental authority, or the entry of an order confirming a plan of reorganization, arrangement or liquidation by a court or governmental authority having supervision or jurisdiction over substantially all of the assets or business of the obligated person.

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(e) For purposes of this Disclosure Certificate, any event described in paragraph (a)(12) above is considered to occur when any of the following occur: the appointment of a receiver, fiscal agent, or similar officer for the City in a proceeding under the United States Bankruptcy Code or in any other proceeding under state or federal law in which a court or governmental authority has assumed jurisdiction over substantially all of the assets or business of the City, or if such jurisdiction has been assumed by leaving the existing governing body and officials or officers in possession but subject to the supervision and orders of a court or governmental authority, or the entry of an order confirming a plan of reorganization, arrangement, or liquidation by a court or governmental authority having supervision or jurisdiction over substantially all of the assets or business of the City.
(f) For purposes of Section 5(a)(15) and (16), “financial obligation” means a (i) debt obligation; (ii) derivative instrument entered into in connection with, or pledged as security or a source of payment for, an existing or planned debt obligation; or (iii) guarantee of (i) or (ii). The term financial obligation shall not include municipal securities as to which a final official statement has been provided to the Municipal Securities Rulemaking Board consistent with the Rule.

Section 6. Identifying Information for Filings with the MSRB. All documents provided to the MSRB under the Disclosure Certificate shall be accompanied by identifying information as prescribed by the MSRB.

Section 7. Termination of Reporting Obligation. The City’s obligations under this Disclosure Certificate shall terminate upon the legal defeasance, prior redemption or payment in full of all of the Bonds. If such termination occurs prior to the final maturity of the Bonds, the City shall give notice of such termination in the same manner as for a Listed Event under Section 5(b).

Section 8. Dissemination Agent. The City may, from time to time, appoint or engage a Dissemination Agent to assist it in carrying out its obligations under this Disclosure Certificate, and may discharge any such Agent, with or without appointing a successor Dissemination Agent.

Any Dissemination Agent may resign by providing 30 days’ written notice to the City.

Section 9. Amendment; Waiver. Notwithstanding any other provision of this Disclosure Certificate, the City may amend this Disclosure Certificate, and any provision of this Disclosure Certificate may be waived, provided that the following conditions are satisfied:
(a) if the amendment or waiver relates to the provisions of Sections 3(a), 4 or 5(a), it may only be made in connection with a change in circumstances that arises from a change in legal requirements, change in law, or change in the identity, nature, or status of an obligated person with respect to the Bonds, or type of business conducted; (b) the undertakings herein, as proposed to be amended or waived, would, in the opinion of nationally recognized bond counsel, have complied with the requirements of the Rule at the time of the primary offering of the Bonds, after taking into account any amendments or interpretations of the Rule, as well as any change in circumstances; and (c) the proposed amendment or waiver either (i) is approved by holders of the Bonds in the manner provided in the Indenture for amendments to the Indenture with the consent of holders, or (ii) does not, in the opinion of nationally recognized bond counsel, materially impair the interests of the holders or beneficial owners of the Bonds.

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If the annual financial information or operating data to be provided in the Annual Report is amended pursuant to the provisions hereof, the first annual financial information filed pursuant hereto containing the amended operating data or financial information shall explain, in narrative form, the reasons for the amendment and the impact of the change in the type of operating data or financial information being provided.

If an amendment is made to the undertaking specifying the accounting principles to be followed in preparing financial statements, the annual financial information for the year in which the change is made shall present a comparison between the financial statements or information prepared on the basis of the new accounting principles and those prepared on the basis of the former accounting principles. The comparison shall include a qualitative discussion of the differences in the accounting principles and the impact of the change in the accounting principles on the presentation of the financial information, in order to provide information to investors to enable them to evaluate the ability of the City to meet its obligations. To the extent reasonably feasible, the comparison shall be quantitative.

A notice of any amendment made pursuant to this Section 9 shall be filed in the same manner as for a Listed Event under Section 5(b).

Section 10. Additional Information. Nothing in this Disclosure Certificate shall be deemed to prevent the City from disseminating any other information, using the means of dissemination set forth in this Disclosure Certificate or any other means of communication, or including any other information in any Annual Report or notice of occurrence of a Listed Event, in addition to that which is required by this Disclosure Certificate. If the City chooses to include any information in any Annual Report or notice of occurrence of a Listed Event in addition to that which is specifically required by this Disclosure Certificate, the City shall have no obligation under this Disclosure Certificate to update such information or include it in any future Annual Report or notice of occurrence of a Listed Event.

Section 11. Default. In the event of a failure of the City to comply with any provision of this Disclosure Certificate, the Participating Underwriter or any holder or beneficial owner of the Bonds may take such actions as may be necessary and appropriate, including seeking mandate or specific performance by court order, to cause the City to comply with its obligations under this Disclosure Certificate. A default under this Disclosure Certificate shall not be deemed an Event of Default under the Indenture, and the sole remedy under this Disclosure Certificate in the event of any failure of the City to comply with this Disclosure Certificate shall be an action to compel performance.

Section 12. Duties, Immunities and Liabilities of Dissemination Agent. (a) The Dissemination Agent shall have only such duties as are specifically set forth in this Disclosure Certificate, and the City agrees to indemnify and save the Dissemination Agent, its officers, directors, employees and agents, harmless against any loss, expense and liabilities which it may incur arising out of or in the exercise or performance of its powers and duties hereunder, including the costs and expenses (including attorneys’ fees) of defending against any claim of liability, but excluding liabilities due to the Dissemination Agent’s negligence or willful misconduct. The Dissemination Agent shall have no duty or obligation to review any information provided to it hereunder and shall not be deemed to be acting in any fiduciary capacity for the City, the Bond owners or any other party. The obligations of the City under this Section shall survive resignation or removal of the Dissemination Agent and payment of the Bonds.

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(b) The Dissemination Agent shall be paid compensation by the City for its services provided hereunder in accordance with its schedule of fees as amended from time to time, and shall be reimbursed for all expenses, legal fees and advances made or incurred by the Dissemination Agent in the performance of its duties hereunder.

Section 13. Beneficiaries. This Disclosure Certificate shall inure solely to the benefit of the City, the Dissemination Agent, the Participating Underwriter and holders and beneficial owners from time to time of the Bonds, and shall create no rights in any other person or entity.

Section 14. Counterparts. This Disclosure Certificate may be executed in several counterparts, each of which shall be regarded as an original, and all of which shall constitute one and the same instrument.

Section 15. Governing Law. This Disclosure Certificate shall be governed by the laws of the state of California.

Date: ________________, 2022

CITY OF UKIAH
By
Name:_____________
Title:_____________
ACCEPTED AND AGREED:

NHA Advisors LLC,
As Dissemination Agent
By
Authorized Representative
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APPENDIX E

FORM OF OPINION OF BOND COUNSEL
[Closing Date]
Board of Directors
Ukiah Public Financing Authority
300 Seminary Avenue
Ukiah, California 95482
OPINION: $__________ Ukiah Public Financing Authority
Lease Revenue Bonds, Series 2022 (Capital Projects)
Members of the Board of the Directors:

We have acted as bond counsel to the Ukiah Public Financing Authority (the “Authority”) in connection with the issuance by the Authority of its Lease Revenue Bonds, Series 2022 (Capital Projects) in the aggregate principal amount of $_________ (the “Bonds”), under an Indenture of Trust dated as of February 1, 2022 (the “Indenture”), between the Authority and The Bank of New York Mellon Trust Company, N.A., as trustee, and under the provisions of Article 4 (commencing with Section 6584) of Chapter 5, Division 7, Title 1 of the California Government Code (the “Bond Law”). The Bonds are secured by Revenues as defined in the Indenture, including certain lease payments made by the City of Ukiah (the “City”) under a Lease Agreement dated as of February 1, 2022 (the “Lease”) between the Authority as lessor and the City as lessee. We have examined the Indenture, the Lease, the Bond Law and such certified proceedings and other papers as we deem necessary to render this opinion.

As to questions of fact material to our opinion, we have relied upon representations of the Authority and the City contained in the Indenture, the Lease and in the certified proceedings, and upon other certifications furnished to us, without undertaking to verify the same by independent investigation. Based upon our examination, we are of the opinion, under existing law, as follows:

1. The Authority is a joint exercise of powers agency duly organized and existing under the laws of the State of California, with power to enter into the Indenture and the Lease, to perform the agreements on its part contained therein and to issue the Bonds.

2. The Bonds constitute legal, valid and binding special obligations of the Authority enforceable in accordance with their terms and payable solely from the sources provided therefor in the Indenture.

3. The Indenture and the Lease have been duly approved by the Authority and constitute the legal, valid and binding obligations of the Authority enforceable against the Authority in accordance with their respective terms.

4. The Indenture establishes a valid first and exclusive lien on and pledge of the Revenues (as that term is defined in the Indenture) and other funds pledged thereby for the security of the Bonds, in accordance with the terms of the Indenture.

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5. The City is a municipal corporation duly organized and existing under the laws of the State of California, with power to enter into the Lease and to perform the agreements on its part contained therein. The Lease has been duly approved by the City and constitutes a legal, valid and binding obligation of the City enforceable against the City in accordance with its terms.

6. Interest on the Bonds is excluded from gross income for federal income tax purposes and is not an item of tax preference for purposes of the federal alternative minimum tax.

The opinions set forth in the preceding sentence are subject to the condition that the Authority and the City comply with all requirements of the Internal Revenue Code of 1986, as amended, which must be satisfied subsequent to the issuance of the Bonds in order that interest thereon be, or continue to be, excluded from gross income for federal income tax purposes. The Authority and the City have covenanted in the Indenture, the Lease and in other instruments relating to the Bonds to comply with each of such requirements, and the Authority and the City have full legal authority to make and comply with such covenants. Failure to comply with certain of such requirements may cause the inclusion of interest on the Bonds in gross income for federal income tax purposes to be retroactive to the date of issuance of the Bonds. We express no opinion regarding other federal tax consequences arising with respect to the ownership, sale or disposition of the Bonds, or the amount, accrual or receipt of interest on the Bonds.

7. Interest on the Bonds is exempt from California personal income taxation.

We express no opinion regarding any other tax consequences arising with respect to the ownership, sale or disposition of, or the amount, accrual or receipt of interest on, the Bonds.

The rights of the owners of the Bonds and the enforceability of the Bonds, the Indenture and the Lease may be subject to bankruptcy, insolvency, reorganization, moratorium and other similar laws affecting creditors’ rights heretofore or hereafter enacted and may also be subject to the exercise of judicial discretion in appropriate cases.

This opinion is given as of the date hereof, and we assume no obligation to revise or supplement this opinion to reflect any facts or circumstances that may hereafter come to our attention, or any changes in law that may hereafter occur. Our engagement with respect to this matter has terminated as of the date hereof.

Respectfully submitted,
A Professional Law Corporation
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APPENDIX F

DTC AND THE BOOK-ENTRY ONLY SYSTEM
The following description of the Depository Trust Company (“DTC”), the procedures and record keeping with respect to beneficial ownership interests in the Bonds, payment of principal, interest and other payments on the Bonds to DTC Participants or Beneficial Owners, confirmation and transfer of beneficial ownership interest in the Bonds and other related transactions by and between DTC, the DTC Participants and the Beneficial Owners is based solely on information provided by DTC. Accordingly, no representations can be made concerning these matters and neither the DTC Participants nor the Beneficial Owners should rely on the foregoing information with respect to such matters, but should instead confirm the same with DTC or the DTC Participants, as the case may be.

Neither the issuer of the Bonds (the “Issuer”) nor the trustee appointed with respect to the Bonds (the “Agent”) take any responsibility for the information contained in this Appendix.

No assurances can be given that DTC, DTC Participants or Indirect Participants will distribute to the Beneficial Owners (a) payments of interest, principal or premium, if any, with respect to the Bonds, (b) certificates representing ownership interest in or other confirmation or ownership interest in the Bonds, or (c) redemption or other notices sent to DTC or Cede & Co., its nominee, as the registered owner of the Bonds, or that they will so do on a timely basis, or that DTC, DTC Participants or DTC Indirect Participants will act in the manner described in this Appendix. The current “Rules” applicable to DTC are on file with the Securities and Exchange Commission and the current “Procedures” of DTC to be followed in dealing with DTC Participants are on file with DTC.

1. The Depository Trust Company (“DTC”), New York, NY, will act as securities depository for the securities (the “Securities”). The Securities will be issued as fully-registered securities registered in the name of Cede & Co. (DTC’s partnership nominee) or such other name as may be requested by an authorized representative of DTC. One fully-registered Security certificate will be issued for each issue of the Securities, each in the aggregate principal amount of such issue, and will be deposited with DTC. If, however, the aggregate principal amount of any issue exceeds $500 million, one certificate will be issued with respect to each $500 million of principal amount, and an additional certificate will be issued with respect to any remaining principal amount of such issue.

2. DTC, the world’s largest securities depository, is a limited-purpose trust company organized under the New York Banking Law, a “banking organization” within the meaning of the New York Banking Law, a member of the Federal Reserve System, a “clearing corporation” within the meaning of the New York Uniform Commercial Code, and a “clearing agency” registered pursuant to the provisions of Section 17A of the Securities Exchange Act of 1934. DTC holds and provides asset servicing for over 3.5 million issues of U.S. and non-U.S. equity issues, corporate and municipal debt issues, and money market instruments (from over 100 countries) that DTC’s participants (“Direct Participants”) deposit with DTC. DTC also facilitates the post-trade settlement among Direct Participants of sales and other securities transactions in deposited securities, through electronic computerized book-entry transfers and pledges between Direct Participants’ accounts. This eliminates the need for physical movement of securities certificates.

Direct Participants include both U.S. and non-U.S. securities brokers and dealers, banks, trust companies, clearing corporations, and certain other organizations. DTC is a wholly-owned subsidiary of The Depository Trust & Clearing Corporation (“DTCC”). DTCC is the holding Attachment 7

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company for DTC, National Securities Clearing Corporation and Fixed Income Clearing Corporation, all of which are registered clearing agencies. DTCC is owned by the users of its regulated subsidiaries. Access to the DTC system is also available to others such as both U.S. and non-U.S. securities brokers and dealers, banks, trust companies, and clearing corporations that clear through or maintain a custodial relationship with a Direct Participant, either directly or indirectly (“Indirect Participants”). DTC has a Standard & Poor’s rating of ___. The DTC Rules applicable to its Participants are on file with the Securities and Exchange Commission. More information about DTC can be found at www.dtcc.com. The information contained on this Internet site is not incorporated herein by reference.

3. Purchases of Securities under the DTC system must be made by or through Direct Participants, which will receive a credit for the Securities on DTC’s records. The ownership interest of each actual purchaser of each Security (“Beneficial Owner”) is in turn to be recorded on the Direct and Indirect Participants’ records. Beneficial Owners will not receive written confirmation from DTC of their purchase. Beneficial Owners are, however, expected to receive written confirmations providing details of the transaction, as well as periodic statements of their holdings, from the Direct or Indirect Participant through which the Beneficial Owner entered into the transaction. Transfers of ownership interests in the Securities are to be accomplished by entries made on the books of Direct and Indirect Participants acting on behalf of Beneficial Owners. Beneficial Owners will not receive certificates representing their ownership interests in Securities, except in the event that use of the book-entry system for the Securities is discontinued.

4. To facilitate subsequent transfers, all Securities deposited by Direct Participants with DTC are registered in the name of DTC’s partnership nominee, Cede & Co., or such other name as may be requested by an authorized representative of DTC. The deposit of Securities with DTC and their registration in the name of Cede & Co. or such other DTC nominee do not effect any change in beneficial ownership. DTC has no knowledge of the actual Beneficial Owners of the Securities; DTC’s records reflect only the identity of the Direct Participants to whose accounts such Securities are credited, which may or may not be the Beneficial Owners. The Direct and Indirect Participants will remain responsible for keeping account of their holdings on behalf of their customers.

5. Conveyance of notices and other communications by DTC to Direct Participants, by Direct Participants to Indirect Participants, and by Direct Participants and Indirect Participants to Beneficial Owners will be governed by arrangements among them, subject to any statutory or regulatory requirements as may be in effect from time to time. Beneficial Owners of Securities may wish to take certain steps to augment the transmission to them of notices of significant events with respect to the Securities, such as redemptions, tenders, defaults, and proposed amendments to the Security documents. For example, Beneficial Owners of Securities may wish to ascertain that the nominee holding the Securities for their benefit has agreed to obtain and transmit notices to Beneficial Owners. In the alternative, Beneficial Owners may wish to provide their names and addresses to the registrar and request that copies of notices be provided directly to them.

6. Redemption notices shall be sent to DTC. If less than all of the Securities within an issue are being redeemed, DTC’s practice is to determine by lot the amount of the interest of each Direct Participant in such issue to be redeemed.

7. Neither DTC nor Cede & Co. (nor any other DTC nominee) will consent or vote with respect to Securities unless authorized by a Direct Participant in accordance with DTC’s MMI Procedures. Under its usual procedures, DTC mails an Omnibus Proxy to Issuer as soon as possible after the record date. The Omnibus Proxy assigns Cede & Co.’s consenting or voting Attachment 7

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rights to those Direct Participants to whose accounts Securities are credited on the record date (identified in a listing attached to the Omnibus Proxy).

8. Redemption proceeds, distributions, and dividend payments on the Securities will be made to Cede & Co., or such other nominee as may be requested by an authorized representative of DTC. DTC’s practice is to credit Direct Participants’ accounts upon DTC’s receipt of funds and corresponding detail information from Issuer or Agent, on payable date in accordance with their respective holdings shown on DTC’s records. Payments by Participants to Beneficial Owners will be governed by standing instructions and customary practices, as is the case with securities held for the accounts of customers in bearer form or registered in “street name,” and will be the responsibility of such Participant and not of DTC, Agent, or Issuer, subject to any statutory or regulatory requirements as may be in effect from time to time. Payment of redemption proceeds, distributions, and dividend payments to Cede & Co. (or such other nominee as may be requested by an authorized representative of DTC) is the responsibility of Issuer or Agent, disbursement of such payments to Direct Participants will be the responsibility of DTC, and disbursement of such payments to the Beneficial Owners will be the responsibility of Direct and Indirect Participants.

9. DTC may discontinue providing its services as depository with respect to the Securities at any time by giving reasonable notice to Issuer or Agent. Under such circumstances, in the event that a successor depository is not obtained, Security certificates are required to be printed and delivered.

10. Issuer may decide to discontinue use of the system of book-entry-only transfers through DTC (or a successor securities depository). In that event, Security certificates will be printed and delivered to DTC.

11. The information in this section concerning DTC and DTC’s book-entry system has been obtained from sources that Issuer believes to be reliable, but Issuer takes no responsibility for the accuracy thereof.

Attachment 7

NRF DRAFT
11/10/21
103512921.2
1 $________

UKIAH PUBLIC FINANCING AUTHORITY
LEASE REVENUE BONDS, SERIES 2022
(CAPITAL PROJECTS)

BOND PURCHASE AGREEMENT
_________, 2022
Ukiah Public Financing Authority
300 Seminary Avenue
Ukiah, CA 95482
City of Ukiah
300 Seminary Avenue
Ukiah, CA 95482
Ladies and Gentlemen:

The undersigned Piper Sandler & Co. (the “Underwriter”) offers to enter into this Bond Purchase Agreement (this “Purchase Agreement”) with the Ukiah Public Financing Authority (the “Authority”) and the City of Ukiah, California (the “City”), which, upon the acceptance by the Authority and the City, will be binding upon the Authority, the City and the Underwriter. This offer is made subject to acceptance by the Authority and by the City by the execution of this Purchase Agreement and delivery of the same to the Underwriter prior to 11:59 P.M., California time, on the date hereof, and, if not so accepted, will be subject to withdrawal by the Underwriter upon notice delivered to the Authority and the City at any time prior to the acceptance hereof by the Authority and the City. Capitalized terms used herein and not otherwise defined shall have the meanings set forth in the Indenture (defined herein).

Section 1. Purchase and Sale. Upon the terms and conditions and on the basis of the representations, warranties and agreements herein set forth, the Underwriter hereby agrees to purchase from the Authority, and the Authority hereby agrees to issue, sell and deliver to the Underwriter all (but not less than all) of the Ukiah Public Financing Authority Lease Revenue Bonds, Series 2022 (Capital Projects) (the “Bonds”). The Bonds shall be dated as of their date of delivery.

Interest on the Bonds shall be payable semiannually on April 1 and October 1 of each year, commencing April 1, 2022 (each an “Interest Payment Date”), and will bear interest at the rates and on the dates as set forth in Exhibit A hereto.

The purchase price for the Bonds shall be $_________ (which represents the principal amount of the Bonds in the amount of $_______, [plus a premium in the amount of $________], less an Underwriter’s discount of $_______).

The City and Authority acknowledge and agree that: (i) the purchase and sale of the Bonds pursuant to this Purchase Agreement is an arm’s-length commercial transaction among the City, the Authority and the Underwriter; (ii) in connection therewith and with the discussions, undertakings and procedures leading up to the consummation of such transaction, the Underwriter is and has been acting solely as a principal and is not acting as a municipal advisor (as defined in Section 15B of the Securities Attachment 8

103512921.2
2 Exchange Act of 1934, as amended), financial advisor or fiduciary; (iii) the Underwriter has not assumed an advisory or fiduciary responsibility in favor of the City or the Authority with respect to the offering contemplated hereby or the discussions, undertakings and procedures leading thereto (irrespective of whether the Underwriter has provided other services or is currently providing other services to the City or the Authority on other matters); and (iv) the City and the Authority have consulted their own legal, financial, municipal and other advisors to the extent they have deemed appropriate.

Section 2. The Bonds. The Bonds shall be secured by the Revenues (as defined in the Indenture, dated as of January 1, 2022 (the “Indenture”), by and between the Authority and The Bank of New York Mellon Trust Company, N.A., as trustee (the “Trustee”)) consisting primarily of base rental payments (“Base Rental Payments”) to be paid by the City pursuant to the Lease Agreement, dated as of January 1, 2022 (the “Lease Agreement”), by and between the Authority and the City. The Authority’s right to receive the Base Rental Payments due under the Lease Agreement and to exercise remedies upon default under such Lease Agreement shall be assigned to the Trustee for the benefit of the owners of the Bonds pursuant to an Assignment Agreement, dated as of January 1, 2022 (the “Assignment Agreement”), by and between the Authority and the Trustee.

The Bonds are being issued to (i) reconstruct the City’s corporation yard and construct improvements to various City streets, as described in the Official Statement; and (ii) fund the costs of issuance associated with the issuance and sale of the Bonds.

Section 3. Public Offering and Establishment of Issue Price. The Underwriter agrees to make a bona fide initial public offering of all the Bonds at the public offering prices (or yields) set forth on Exhibit A attached hereto and incorporated herein by reference. Subsequent to the initial public offering, the Underwriter reserves the right to change the public offering prices (or yields) as they deem necessary in connection with the marketing of the Bonds, provided that the Underwriter shall not change the interest rates set forth on Exhibit A. The Bonds may be offered and sold to certain dealers at prices lower than such initial public offering prices.

The Underwriter agrees to assist the Authority in establishing the issue price of the Bonds and shall execute and deliver to the Authority at Closing (as defined below) an “issue price” or similar certificate, together with the supporting pricing wires or equivalent communications, substantially in the form attached hereto as Exhibit B, with such modifications as may be appropriate or necessary, in the reasonable judgment of the Underwriter, the Authority and Bond Counsel (as defined below), to accurately reflect, as applicable, the sales price or prices or the initial offering price or prices to the public of the Bonds.

The Authority will treat the first price at which 10% of each maturity of the Bonds (the “10% test”), identified as “10% Test Used” in Exhibit A, is sold to the public as the issue price of that maturity (if different interest rates apply within a maturity, each separate CUSIP number within that maturity will be subject to the 10% test). At or promptly after the execution of this Purchase Agreement, the Underwriter shall report to the Authority the price or prices at which it has sold to the public each maturity of Bonds. If at that time the 10% test has not been satisfied as to any maturity of the Bonds, the Underwriter agrees to promptly report to the Authority the prices at which it sells the unsold Bonds of that maturity to the public. That reporting obligation shall continue, whether or not the Closing Date (as defined below) has occurred, until the 10% test has been satisfied as to the Bonds of that maturity or until all Bonds of that maturity have been sold to the public.

The Underwriter confirms that it has offered the Bonds to the public on or before the date of this Purchase Agreement at the offering price or prices (the “initial offering price”), or at the corresponding yield or yields, set forth in Exhibit A attached hereto, except as otherwise set forth therein. Exhibit A also Attachment 8

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3 sets forth, identified under the column “Hold the Offering Price Rule Used,” as of the date of this Purchase Agreement, the maturities, if any, of the Bonds for which the 10% test has not been satisfied and for which the Authority and the Underwriter agree that the restrictions set forth in the next sentence shall apply, which will allow the Authority to treat the initial offering price to the public of each such maturity as of the sale date as the issue price of that maturity (the “hold-the-offering-price rule”). So long as the hold-the-offering-price rule remains applicable to any maturity of the Bonds, the Underwriter will neither offer nor sell unsold Bonds of that maturity to any person at a price that is higher than the initial offering price to the public during the period starting on the sale date and ending on the earlier of the following:
(i) the close of the fifth (5th) business day after the sale date; or (ii) the date on which the Underwriter has sold at least 10% of that maturity of the Bonds to the public at a price that is no higher than the initial offering price to the public.

The Underwriter shall promptly advise the Authority when it has sold 10% of that maturity of the Bonds to the public at a price that is no higher than the initial offering price to the public, if that occurs prior to the close of the fifth (5th) business day after the sale date.

The Underwriter acknowledges that sales of any Bonds to any person that is a related party to the Underwriter shall not constitute sales to the public for purposes of this section. Further, for purposes of this section:
(i) “public” means any person other than an underwriter or a related party; (ii) “underwriter” means (A) any person that agrees pursuant to a written contract with the Authority (or with the lead underwriter to form an underwriting syndicate) to participate in the initial sale of the Bonds to the public and (B) any person that agrees pursuant to a written contract directly or indirectly with a person described in clause (A) to participate in the initial sale of the Bonds to the public (including a member of a selling group or a party to a retail distribution agreement participating in the initial sale of the Bonds to the public); (iii) a purchaser of any of the Bonds is a “related party” to an underwriter if the underwriter and the purchaser are subject, directly or indirectly, to (i) more than 50% common ownership of the voting power or the total value of their stock, if both entities are corporations (including direct ownership by one corporation of another), (ii) more than 50% common ownership of their capital interests or profits interests, if both entities are partnerships (including direct ownership by one partnership of another), or (iii) more than 50% common ownership of the value of the outstanding stock of the corporation or the capital interests or profit interests of the partnership, as applicable, if one entity is a corporation and the other entity is a partnership (including direct ownership of the applicable stock or interests by one entity of the other); and (iv) “sale date” means the date of execution of this Purchase Agreement by all parties.

Section 4. The Official Statement. By their acceptance of this Purchase Agreement, the Authority and the City ratify, confirm and approve of the use and distribution by the Underwriter prior to the date hereof of the Preliminary Official Statement relating to the Bonds, dated _________, 2022 (including the cover page, all appendices and all information incorporated therein and any supplements or amendments thereto and as disseminated in its printed physical form or in electronic form in all respects materially consistent with such physical form, the “Preliminary Official Statement”) that authorized officers of the City and the Authority deemed “final” as of its date, for purposes of Rule 15c2-12 Attachment 8

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4 promulgated under the Securities Exchange Act of 1934, as amended (“Rule 15c2-12”) except for certain omissions permitted to be omitted therefrom by Rule 15c2-12. The Authority and the City hereby agree to deliver or cause to be delivered to the Underwriter, within seven (7) business days of the date hereof, copies of the final official statement, dated the date hereof, relating to the Bonds (including all information previously permitted to have been omitted by Rule 15c2-12, the cover page, all appendices, all information incorporated therein and any amendments or supplements as have been approved by the Authority, the City and the Underwriter (the “Official Statement”)) in such quantity as the Underwriter shall reasonably request to comply with Rule 15c2-12(b)(4) and the rules of the Municipal Securities Rulemaking Board (the “MSRB”).

Section 5. Closing. At 8:30 a.m., California time, on ________, 2022, or at such other time or date as the Authority, the City and the Underwriter mutually agreed upon, the Authority shall deliver or cause to be delivered to the Trustee, and the Trustee shall deliver or cause to be delivered through the facilities of The Depository Trust Company, New York New York (“DTC”), the Bonds in definitive form, duly executed and authenticated. Concurrently with the delivery of the Bonds, the Authority and the City shall deliver the documents hereinafter mentioned at the offices of The Weist Law Firm, Los Gatos, California (“Bond Counsel”) or another place to be mutually agreed upon by the Authority, the City and the Underwriter. The Underwriter will accept such delivery and pay the purchase price of the Bonds as set forth in Section 1 hereof by wire transfer in immediately available funds. This payment for and delivery of the Bonds, together with the delivery of the aforementioned documents referenced herein, is called the “Closing.”
The Bonds shall be registered in the name of Cede & Co., as nominee of DTC in denominations of $5,000 and any integral multiple thereof, and shall be made available to the Underwriter at least one (1) business day before the Closing for purposes of inspection and packaging. The Authority and the City acknowledge that the services of DTC will be used initially by the Underwriter to permit the issuance of the Bonds in book-entry form, and agree to cooperate fully with the Underwriter in employing such services.

Section 6. Representations, Warranties and Covenants of the Authority. The Authority represents, warrants and covenants to the Underwriter and the City that:
(a) The Authority is and will be at the date of Closing a joint exercise of powers authority organized and existing under the laws of the State of California (the “State”), including Section 6500 et seq. of the Government Code of the State of California (the “JPA Act”) with all necessary power and authority to enter into and perform its duties under the Site and Facility Lease, dated as of January 1, 2022 (the “Site Lease”), by and between the City and the Authority, the Lease Agreement, the Indenture, the Assignment Agreement, and this Purchase Agreement (collectively, the “Authority Documents”). (b) The Authority has complied with all filing requirements of the JPA Act. (c) By official action of the Authority prior to or concurrently with the acceptance hereof, the Authority has duly approved the distribution of the Preliminary Official Statement and the distribution of the Official Statement (including in electronic form), and has duly authorized and approved the execution and delivery of, and the performance by the Authority of the obligations on its part contained, in the Authority Documents. When executed and delivered, each Authority Document will constitute the legal, valid and binding obligation of the Authority enforceable in accordance with its terms, except as enforcement may be limited by bankruptcy, insolvency, reorganization, moratorium or similar laws or equitable principles relating to or affecting creditors’ rights generally.

Attachment 8

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5 (d) Prior to the date hereof, the Authority has provided to the Underwriter for its review the Preliminary Official Statement that an authorized officer of the Authority has deemed final for purposes of Rule 15c2-12, has approved the distribution of the Preliminary Official Statement and the Official Statement and has duly authorized the execution and delivery of the Official Statement (including in electronic form). The Preliminary Official Statement, at the date thereof, did not contain any untrue statement of a material fact or omit to state any material fact necessary to make the statements therein (other than the information relating to DTC and its book-entry system, as to which no view is expressed), in light of the circumstances under which they were made, not misleading. As of the date hereof and on the Closing, the final Official Statement did not and will not contain any untrue statement of a material fact or omit to state any material fact necessary to make the statements therein (other than the information relating to DTC and its book-entry system, as to which no view is expressed), in light of the circumstances under which they were made, not misleading. (e) The execution and delivery by the Authority of the Authority Documents and the approval and execution by the Authority of the Official Statement and compliance with the provisions on the Authority’s part contained in the Authority Documents, will not conflict with or constitute a breach of or default under any law, administrative regulation, judgment, decree, loan agreement, indenture, bond, note, resolution, agreement or other instrument to which the Authority is a party or is otherwise subject to, which conflict, breach or default has or may have a material adverse effect on the ability of the Authority to carry out its obligations under the Authority Documents, nor will any such execution, delivery, adoption or compliance result in the creation or imposition of any material lien, charge or other security interest or encumbrance of any nature whatsoever upon any of the properties or assets of the Authority under the terms of any such law, administrative regulation, judgment, decree, loan agreement, indenture, trust agreement, bond, note, resolution, agreement or other instrument, except as provided by the Authority Documents.
(f) The Authority will advise the Underwriter promptly of any proposal to amend or supplement the Official Statement and will not effect or consent to any such amendment or supplement without the consent of the Underwriter, which consent will not be unreasonably withheld. The Authority will advise the Underwriter promptly of the institution of any proceedings known to it by any governmental agency prohibiting or otherwise affecting the use of the Official Statement in connection with the offering, sale or distribution of the Bonds.
(g) The Authority is not in breach of or default under any applicable law or administrative regulation of the State or the United States of America or any applicable judgment or decree or any loan agreement, indenture, trust agreement, bond, note, resolution, agreement or other instrument to which the Authority is a party or is otherwise subject, and no event has occurred and is continuing which, with the passage of time or the giving of notice, or both, would constitute a default or an event of default under any such instrument, in each case which breach or default has or may have a material adverse effect on the ability of the Authority to perform its obligations under the Authority Documents.
(h) As of the time of acceptance hereof and as of the date of Closing, no action, suit, proceeding, inquiry or investigation, at law or in equity, before or by any court, government agency, public board or body, is pending with respect to which the Authority has been served or, to the best knowledge of the officers of the Authority, threatened (i) in any way questioning the corporate existence of the Authority or the titles of the officers of the Authority to their respective offices, (ii) affecting, contesting or seeking to prohibit, restrain or enjoin the execution or delivery of any of the Bonds, or in any way contesting or affecting the validity of the Bonds or the Authority Documents or the consummation of the transactions contemplated thereby, or contesting the exclusion of the interest on the Bonds from gross income for federal income tax purposes or contesting the powers of the Authority to Attachment 8

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6 enter into the Authority Documents or (iii) contesting the completeness or accuracy of the Preliminary Official Statement or the Official Statement or any supplement or amendment thereto or asserting that the Preliminary Official Statement or the Official Statement contained any untrue statement of a material fact or omitted to state any material fact required to be stated therein or necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading, and there is no basis for any action, suit, proceeding, inquiry or investigation of the nature described in clause (i) through (iii) of this sentence.
(i) Any certificate signed by any officer of the Authority authorized to execute such certificate in connection with the issuance, sale and delivery of the Bonds and delivered to the Underwriter shall be deemed a representation and warranty of the Authority to the Underwriter and the City as to the statements made therein but not of the person signing such certificate. (j) The Authority will apply the proceeds of the Bonds in accordance with the Indenture.

Section 7. Representations, Warranties and Covenants of the City. The City represents, warrants and covenants to the Underwriter and the Authority that:
(a) The City is and will be at the date of Closing a municipal corporation and duly organized and existing pursuant to and under the Constitution and laws of the State and has all necessary power and authority to enter into and perform its duties under the Continuing Disclosure Certificate relating to the Bonds (the “Continuing Disclosure Certificate”), the Site Lease, the Lease Agreement, and this Purchase Agreement (collectively, the “City Documents” and, together with the Authority Documents, the “Legal Documents”) and has by official action duly authorized and approved the execution and delivery of, and the performance by the City of the obligations on its part contained in the City Documents.
(b) By official action of the City prior to or concurrently with the acceptance hereof, the City has duly approved the distribution of the Preliminary Official Statement and the distribution of the Official Statement (including in electronic form), and has duly authorized and approved the execution and delivery of, and the performance by the City of the obligations on its part contained, in the City Documents. When executed and delivered, each City Document will constitute the legally valid and binding obligation of the City enforceable in accordance with its terms, except as enforcement may be limited by bankruptcy, insolvency, reorganization, moratorium or similar laws or equitable principles relating to or affecting creditors’ rights generally.
(c) The Preliminary Official Statement heretofore delivered to the Underwriter is hereby deemed final by the City as of its date and as of the date hereof, except for the omission of such information as is permitted to be omitted in accordance with paragraph (b)(i) of Rule 15c2-12. The Preliminary Official Statement, at the date thereof, did not contain any untrue statement of a material fact or omit to state any material fact necessary to make the statements therein (other than the information relating to DTC and its book-entry system, as to which no view is expressed), in the light of the circumstances under which they were made, not misleading. As of the date hereof and on the Closing, the final Official Statement did not and will not contain any untrue statement of a material fact or omit to state any material fact necessary to make the statements therein (other than the information relating to DTC and its book-entry system, as to which no view is expressed), in the light of the circumstances under which they were made, not misleading.
(d) The execution and delivery by the City of the City Documents and the approval by the City of the Official Statement and compliance with the provisions on the City’s part contained in Attachment 8

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7 the City Documents, will not conflict with or constitute a breach of or default under any law, administrative regulation, judgment, decree, loan agreement, indenture, trust agreement, bond, note, resolution, agreement or other instrument to which the City is a party or is otherwise subject to, which conflict, breach or default has or may have a material adverse effect on the ability of the City to carry out its obligations under the City Documents, nor will any such execution, delivery, adoption or compliance result in the creation or imposition of any material lien, charge or other security interest or encumbrance of any nature whatsoever upon any of the properties or assets of City under the terms of any such law, administrative regulation, judgment, decree, loan agreement, indenture, trust agreement, bond, note, resolution, agreement or other instrument, except as provided by the City Documents. (e) The City will advise the Underwriter promptly of any proposal to amend or supplement the Official Statement and will not effect or consent to any such amendment or supplement without the consent of the Underwriter, which consent will not be unreasonably withheld. The City will advise the Underwriter promptly of the institution of any proceedings known to it by any governmental authority prohibiting or otherwise affecting the use of the Official Statement in connection with the offering, sale or distribution of the Bonds.
(f) The City is not in breach of or default under any applicable law or administrative regulation of the State or the United States of America or any applicable judgment or decree or any loan agreement, indenture, bond, note, resolution, agreement or other instrument to which the City is a party or is otherwise subject, and no event has occurred and is continuing which, with the passage of time or the giving of notice, or both, would constitute a default or an event of default under any such instrument, in each case which breach or default has or may have a material adverse effect on the ability of the City to perform its obligations under the City Documents.
(g) The financial statements relating to the receipts, expenditures and cash balances of the City as of June 30, 2021 as set forth in the Official Statement fairly represent the receipts, expenditures and cash balances of the General Fund. Except as disclosed in the Preliminary Official Statement, the Official Statement or otherwise disclosed in writing to the Underwriter, there has not been any materially adverse change in the financial condition of the General Fund or in its operations since June 30, 2019 and, except as disclosed in the Preliminary Official Statement, the Official Statement or otherwise disclosed in writing to the Underwriter, there has been no occurrence, circumstance or combination thereof which is reasonably expected to result in any such materially adverse change. (h) As of the time of acceptance hereof and as of the date of Closing, no action, suit, proceeding, inquiry or investigation, at law or in equity, before or by any court, government agency, public board or body, is pending or, to the knowledge of the officers of the City, threatened (i) in any way questioning the corporate existence of the City or the titles of the officers of the City to their respective offices; (ii) affecting, contesting or seeking to prohibit, restrain or enjoin the execution or delivery of any of the Bonds, or in any way contesting or affecting the validity of the Bonds or the City Documents or the consummation of the transactions contemplated thereby, or contesting the exclusion of the interest on the Bonds from gross income for federal income tax purposes or contesting the power of the City to enter into the City Documents; (iii) which may result in any material adverse change to the financial condition of the City or to its ability to pay the Base Rental Payments when due; or (iv) contesting the completeness or accuracy of the Preliminary Official Statement or the Official Statement or any supplement or amendment thereto or asserting that the Preliminary Official Statement or the Official Statement contained any untrue statement of a material fact or omitted to state any material fact required to be stated therein or necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading, and there is no basis for any action, suit, proceeding, inquiry or investigation of the nature described in clause (i) through (iv) of this sentence.

Attachment 8

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8 (i) To the extent required by law, the City will undertake, pursuant to the Continuing Disclosure Certificate, to provide annual reports and notices of certain events. A description of this undertaking is set forth in the Preliminary Official Statement and will also be set forth in the final Official Statement. Except as otherwise disclosed in the Preliminary Official Statement, the City has not failed to comply in all material respects with any previous undertakings with regard to the Rule 15c2-12 to provide annual reports or notices of enumerated events in the past five years. (j) Any certificate signed by any officer of the City authorized to execute such certificate in connection with the issuance, sale and delivery of the Bonds and delivered to the Underwriter shall be deemed a representation and warranty of the City to the Underwriter and the Authority as to the statements made therein but not of the person signing such certificate. (k) As of the date hereof, the City does not have any material obligations secured by payments from the General Fund of the City, except as disclosed in the Official Statement.

Section 8. Conditions to the Obligations of the Underwriter. The Underwriter has entered into this Purchase Agreement in reliance upon the representations and warranties of the Authority and the City contained herein. The obligations of the Underwriter to accept delivery of and pay for the Bonds on the date of the Closing shall be subject, at the option of the Underwriter, to the accuracy in all respects of the statements of the officers and other officials of the Authority and of the City, as well as authorized representatives of Bond Counsel, Disclosure Counsel and the Trustee made in any Bonds or other documents furnished pursuant to the provisions hereof; to the performance by the Authority and the City of their obligations to be performed hereunder at or prior to the date of the Closing; and to the following additional conditions:
(a) The representations, warranties and covenants of the City and the Authority contained herein shall be true, complete and correct at the date hereof and at the time of the Closing, as if made on the date of the Closing;
(b) At the time of Closing, the Legal Documents shall be in full force and effect as valid and binding agreements between or among the various parties thereto, and the Legal Documents and the Official Statement shall not have been amended, modified or supplemented except as may have been agreed to in writing by the Underwriter, and all such reasonable actions as, in the opinion of Bond Counsel, shall reasonably deem necessary in connection with the transactions contemplated hereby; (c) At the time of the Closing, no default shall have occurred or be existing under the Authority Documents, the City Documents, or any other agreement or document pursuant to which any of the City’s financial obligations were executed and delivered, and the City shall not be in default in the payment of principal or interest with respect to any of its financial obligations, which default would adversely impact the ability of the City to make the Base Rental Payments; (d) In recognition of the desire of the Authority, the City and the Underwriter to effect a successful public offering of the Bonds, and in view of the potential adverse impact of any of the following events on such a public offering, this Purchase Agreement shall be subject to termination in the absolute discretion of the Underwriter by notification, in writing, to the Authority and the City prior to delivery of and payment for the Bonds, if at any time prior to such time, regardless of whether any of the following statements of fact were in existence or known of on the date of this Purchase Agreement:
(i) any event shall occur which makes untrue any statement or results in an omission to state a material fact necessary to make the statements in the Official Statement, in the light of the circumstances under which they were made, not misleading, Attachment 8

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9 which event, in the reasonable opinion of the Underwriter would materially or adversely affect the ability of the Underwriter to market the Bonds; or (ii) the marketability of the Bonds or the market price thereof, in the reasonable opinion of the Underwriter, has been materially adversely affected by an amendment to the Constitution of the United States of America or by any legislation in or by the Congress of the United States of America or by the State, or the amendment of legislation pending as of the date of this Purchase Agreement in the Congress of the United States of America, or the recommendation to Congress or endorsement for passage (by press release, other form of notice or otherwise) of legislation by the President of the United States of America, the Treasury Department of the United States of America, the Internal Revenue Service or the Chairman or ranking minority member of the Committee on Finance of the United States Senate or the Committee on Ways and Means of the United States House of Representatives, or the proposal for consideration of legislation by either such Committee or by any member thereof, or the presentment of legislation for consideration as an option by either such Committee, or by the staff of the Joint Committee on Taxation of the Congress of the United States of America, or the favorable reporting for passage of legislation to either House of the Congress of the United States of America by a Committee of such House to which such legislation has been referred for consideration, or any decision of any federal or state court or any ruling or regulation (final, temporary or proposed) or official statement on behalf of the United States Treasury Department, the Internal Revenue Service or other federal or State authority affecting the federal or State tax status of the Authority or the City, or the interest on or with respect to bonds or notes (including the Bonds); or (iii) any legislation, ordinance, rule or regulation shall be introduced in, or be enacted by any governmental body, department or agency of the State, or a decision by any court of competent jurisdiction within the State shall be rendered which materially adversely affects the market price of the Bonds; or
(iv) an order, decree or injunction issued by any court of competent jurisdiction, or order, ruling, regulation (final, temporary or proposed), official statement or other form of notice or communication issued or made by or on behalf of the Securities and Exchange Commission, or any other governmental agency having jurisdiction of the subject matter, to the effect that: (i) obligations of the general character of the Bonds, or the Bonds, including any or all underlying arrangements, are not exempt from registration under the Securities Act of 1933, as amended, or that the Indenture is not exempt from qualification under the Trust Indenture Act of 1939, as amended; or (ii) the issuance, offering or sale of obligations of the general character of the Bonds, or the issuance, offering or sale of the Bonds, including any or all underlying obligations, as contemplated hereby or by the Official Statement, is or would be in violation of the federal securities laws as amended and then in effect; or (v) legislation shall be enacted by the Congress of the United States of America, or a decision by a court of the United States of America shall be rendered, to the effect that obligations of the general character of the Bonds, or the Bonds are not exempt from registration under or other requirements of the Securities Act of 1933, as amended and as then in effect, or the Securities Exchange Act of 1934, as amended and as then in effect, or that the Indenture is not exempt from qualification under or other requirements of the Trust Indenture Act of 1939, as amended and as then in effect; or Attachment 8

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10 (vi) additional material restrictions not in force as of the date hereof shall have been imposed upon trading in securities generally by any domestic governmental authority or by any domestic national securities exchange, which are material to the marketability of the Bonds; or
(vii) a general banking moratorium shall have been declared by federal, State or New York authorities, or the general suspension of trading on any national securities exchange; or
(viii) there shall have occurred any outbreak or escalation of hostilities, declaration by the United States of America of a national emergency or war or other calamity or crisis the effect of which on financial markets is materially adverse such as to make it, in the sole judgment of the Underwriter, impractical to proceed with the purchase or delivery of the Bonds as contemplated by the final Official Statement (exclusive of any amendment or supplement thereto); or
(ix) any rating of the Bonds or the rating of any obligations of the City secured by the City’s general fund shall have been downgraded or withdrawn by a national rating service, which, in the reasonable opinion of the Underwriter, materially adversely affects the market price of the Bonds; or
(x) the commencement of any action, suit or proceeding described in Section 6(h) or Section 7(h);
(e) at or prior to the Closing, the Underwriter shall receive the following documents, in each case to the reasonable satisfaction in form and substance of the Underwriter:
(i) all resolutions relating to the Bonds adopted by the Authority and certified by an authorized official of the Authority authorizing the execution and delivery of the Bonds, the Authority Documents and the Official Statement; (ii) all resolutions relating to the Bonds adopted by the City and certified by an authorized official of the City authorizing the execution and delivery of the City Documents and the delivery of the Bonds and the Official Statement; (iii) the Legal Documents duly executed and delivered by the respective parties thereto, with only such amendments, modifications or supplements as may have been agreed to in writing by the Underwriter;
(iv) the approving opinion of Bond Counsel, dated the date of Closing and addressed to the Authority and the City, in substantially the form attached as Appendix E to the Official Statement, together with a reliance letter thereon addressed to the Underwriter;
(v) a supplemental opinion of Bond Counsel dated the date of Closing and addressed to the Underwriter, to the effect that:
(A) the statements on the cover of the Official Statement and in the Official Statement under the captions “INTRODUCTION,” “THE BONDS,” “SECURITY FOR THE BONDS,” and “TAX MATTERS,” and in
APPENDIX A – “SUMMARY OF PRINCIPAL LEGAL DOCUMENTS,”
Attachment 8

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11 APPENDIX C – “FORM OF CONTINUING DISCLOSURE CERTIFICATE” and APPENDIX E – “FORM OF OPINION OF BOND COUNSEL,” and excluding any material that may be treated as included under such captions and appendices by any cross-reference, insofar as such statements expressly summarize provisions of the Bonds, the Site Lease, the Lease Agreement, the Assignment Agreement, the Indenture, and Bond Counsel’s final opinion concerning the Bonds, are accurate in all material respects as of the date of Closing.
(B) the Purchase Agreement has been duly authorized, executed and delivered by the Authority and the City and is the valid, legal and binding agreement of the Authority and the City enforceable in accordance with its terms, except that the rights and obligations under the Purchase Agreement are subject to bankruptcy, insolvency, reorganization, moratorium, fraudulent conveyance and other similar laws affecting creditors’ rights, to the application of equitable principles if equitable remedies are sought, to the exercise of judicial discretion in appropriate cases and to limitations on legal remedies against public agencies in the State.
(C) the Bonds are not subject to the registration requirements of the Securities Act of 1933, as amended, and the Indenture is exempt from qualification under the Trust Indenture Act of 1939, as amended. (vi) the Official Statement, executed on behalf of the Authority and the City; (vii) evidence that the Bonds have received an underlying rating of “___” by S&P Global Ratings;
(viii) a certificate, dated the date of Closing, signed by a duly authorized officer of the Authority satisfactory in form and substance to the Underwriter to the effect that: (i) the representations, warranties and covenants of the Authority contained in this Purchase Agreement are true and correct in all material respects on and as of the date of Closing with the same effect as if made on the date of the Closing by the Authority, and the Authority has complied with all of the terms and conditions of this Purchase Agreement required to be complied with by the Authority at or prior to the date of Closing; (ii) to the best of such officer’s knowledge, no event affecting the Authority has occurred since the date of the Official Statement which should be disclosed in the Official Statement for the purposes for which it is to be used or which is necessary to disclose therein in order to make the statements and information therein not misleading in any material respect; (iii) the information and statements contained in the Official Statement (other than information relating to DTC and its book-entry system) did not as of its date and do not as of the Closing contain an untrue statement of a material fact or omit to state any material fact necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading in any material respect; and (iv) the Authority is not in breach of or default under any applicable law or administrative regulation of the State or the United States of America or any applicable judgment or decree or any loan agreement, indenture, bond, note, resolution, agreement or other instrument to which the Authority is a party or is otherwise subject, which would have a material adverse impact on the Authority’s ability to perform its obligations under the Authority Documents, and no event has occurred and is continuing which, with the Attachment 8

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12 passage of time or the giving of notice, or both, would constitute such a default or an event of default under any such instrument;
(ix) a certificate, dated the date of Closing, signed by a duly authorized officer of the City satisfactory in form and substance to the Underwriter to the effect that:
(i) the representations, warranties and covenants of the City contained in this Purchase Agreement are true and correct in all material respects on and as of the date of Closing with the same effect as if made on the date of the Closing by the City, and the City has complied with all of the terms and conditions of the Purchase Agreement required to be complied with by the City at or prior to the date of Closing; (ii) to the best of such officer’s knowledge, no event affecting the City has occurred since the date of the Official Statement which should be disclosed in the Official Statement for the purposes for which it is to be used or which is necessary to disclose therein in order to make the statements and information therein not misleading in any material respect; (iii) the information and statements contained in the Official Statement (other than information relating to DTC and its book-entry system) did not as of its date and do not as of the Closing contain an untrue statement of a material fact or omit to state any material fact necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading in any material respect; (iv) the City is not in breach of or default under any applicable law or administrative regulation of the State or the United States of America or any applicable judgment or decree or any loan agreement, indenture, bond, note, resolution, agreement (including but not limited to the Lease Agreement) or other instrument to which the City is a party or is otherwise subject, which would have a material adverse impact on the City’s ability to perform its obligations under the City Documents, and no event has occurred and is continuing which, with the passage of time or the giving of notice, or both, would constitute such a default or an event of default under any such instrument; and (v) no further consent is required for inclusion of its audited financial statements in the Official Statement; (x) an opinion dated the date of Closing and addressed to the Underwriter, the Trustee and Bond Counsel, of the Office of the City Attorney of the City, as Counsel to the Authority, to the effect that:
(A) the Authority is a joint exercise of powers authority organized and existing under the laws of the State of California; (B) the resolution of the Authority approving and authorizing the execution and delivery of the Authority Documents, the Bonds and the Official Statement and other actions of the Authority was duly adopted at a meeting of the governing body of the Authority which was called and held pursuant to law and with all public notice required by law and at which a quorum was present and acting throughout, and the resolution is now in full force and effect and has not been amended or superseded in any way;
(C) there is no action, suit, proceeding, inquiry or investigation at law or in equity before or by any court or public body pending with respect to which the Authority has been served or, to the best of such counsel’s knowledge, threatened against or affecting the Authority, except as may be disclosed in the Official Statement, which would materially adversely impact the Authority’s ability to complete the transactions contemplated by the Authority Documents, the Official Statement or any other document or certificate related to such Attachment 8

103512921.2
13 transactions, restrain or enjoin the collection of Base Rental Payments with respect to the Lease Agreement, or in any way contesting or affecting the validity of the Bonds, the Official Statement, the Authority Documents or the transactions described in and contemplated thereby wherein an unfavorable decision, ruling or finding would materially adversely affect the validity and enforceability of the Bonds or the Authority Documents or in which a final adverse decision could materially adversely affect the operations of the Authority; (D) the execution and delivery of the Authority Documents and the issuance of the Bonds and compliance with the provisions thereof, do not and will not in any material respect conflict with or constitute on the part of the Authority a breach of or default under any agreement or other instrument to which the Authority is a party or by which it is bound or any existing law, regulation, court order or consent decree to which the Authority is subject, which breach or default has or may have a material adverse effect on the ability of the Authority to perform its obligations under the Authority Documents; and (E) no authorization, approval, consent, or other order of the State of California or any other governmental body within the State of California is required for the valid authorization, execution and delivery of the Authority Documents or the Official Statement by the Authority or the consummation by the Authority of the transactions on its part contemplated therein, except such as have been obtained and except such as may be required under state securities or blue sky laws in connection with the purchase and distribution of the Bonds by the Underwriter.
(xi) an opinion dated the date of Closing and addressed to the Underwriter, the Trustee and the Bond Counsel, of the Office of the City Attorney of the City, to the effect that:
(A) the City is a municipal corporation duly organized and validly existing under the Constitution and laws of the State of California; (B) the resolution of the City approving and authorizing the execution and delivery of the City Documents and approving and authorizing the issuance of the Bonds and the delivery of the Official Statement and other actions of the City was duly adopted at a meeting of the governing body of the City which was called and held pursuant to law and with all public notice required by law and at which a quorum was present and acting throughout, and the resolution is now in full force and effect and has not been amended or superseded in any way;
(C) there is no action, suit, proceeding, inquiry or investigation at law or in equity before or by any court or public body pending with respect to which the City has been served or, to the best of such City Attorney’s knowledge, threatened against or affecting the City, except as may be disclosed in the Official Statement, which would materially adversely impact the City’s ability to complete the transactions contemplated by the City Documents, the Official Statement or any other document or certificate related to such transactions, restrain or enjoin the collection of Base Rental Payments with respect to the Attachment 8

103512921.2
14 Lease Agreement, or in any way contesting or affecting the validity of the Bonds, the Official Statement or the City Documents;
(D) the execution and delivery of the City Documents and compliance with the provisions thereof, do not and will not in any material respect conflict with or constitute on the part of the City a breach of or default under any agreement or other instrument to which the City is a party or by which it is bound or any existing law, regulation, court order or consent decree to which the City is subject, which breach or default has or may have a material adverse effect on the ability of the City to perform its obligations under the City Documents; and
(E) no authorization, approval, consent, or other order of the State of California or any other governmental body within the State of California is required for the valid authorization, execution and delivery of the City Documents or the consummation by the City of the transactions on its part contemplated therein, except such as have been obtained and except such as may be required under state securities or blue sky laws in connection with the purchase and distribution of the Bonds by the Underwriter. (xii) an opinion of Jones Hall, A Professional Law Corporation, San Francisco, California, Disclosure Counsel to the Authority and the City dated the date of Closing and addressed to the Authority, the City, the Underwriter in the form set forth in Exhibit C;
(xiii) an opinion of counsel to the Trustee, addressed to the Underwriter and the Authority, dated the date of the Closing, to the effect that:
(A) the Trustee is a national banking association duly organized and validly existing under the laws of the United States of America, having full corporate power to undertake the trust created under the Indenture; (B) the Indenture and the Assignment Agreement (together, the “Trustee Documents”) have each been duly authorized, executed and delivered by the Trustee and, assuming due authorization, execution and delivery by the other parties thereto, the Trustee Documents constitute the valid, legal and binding obligations of the Trustee enforceable in accordance with their terms, except as enforcement thereof may be limited by bankruptcy, insolvency or other laws affecting the enforcement of creditors’ rights generally and by the application of equitable principles, if equitable remedies are sought; (C) the Trustee has duly authenticated the Bonds upon the order of Authority;
(D) the Trustee’s actions in executing and delivering the Trustee Documents are in full compliance with, and do not conflict with any applicable law or governmental regulation and, to the best of such counsel’s knowledge, after reasonable inquiry with respect thereto, do not conflict with or violate any contract to which the Trustee is a party or any administrative or judicial decision by which the Trustee is bound; and
Attachment 8

103512921.2
15 (E) no consent, approval, authorization or other action by any governmental or regulatory authority having jurisdiction over the banking or trust powers of the Trustee that has not been obtained is or will be required for the execution and delivery of the Bonds or the consummation by the Trustee of its obligations under the Trustee Documents.
(xiv) a certificate, dated the date of Closing, signed by a duly authorized officer of the Trustee satisfactory in form and substance to the Underwriter, to the effect that:
(A) the Trustee is duly organized and existing as a national banking association under the laws of the United States of America, having the full corporate power and authority to enter into and perform its duties under the Trustee Documents;
(B) the Trustee is duly authorized to enter into the Trustee Documents and has duly executed and delivered the Trustee Documents, and assuming due authorization and execution by the other parties thereto, the Trustee Documents are legal, valid and binding upon the Trustee and enforceable against such party in accordance with its terms;
(C) the Trustee has duly authenticated the Bonds under the Indenture and delivered the Bonds to or upon the order of the Underwriter; (D) no consent, approval, authorization or other action by any governmental or regulatory authority having jurisdiction over the banking or trust powers of the Trustee that has not been obtained is required for the execution and delivery of the Bonds or the consummation by the Trustee of its obligations under the Trustee Documents; and
(E) to the knowledge of the Trustee, there is no action, suit, proceeding, inquiry or investigation at law or in equity before or by any court or public body pending or threatened against or affecting the Trustee, which would materially adversely impact the Trustee’s ability to complete the transactions contemplated by the Trustee Documents.
(xv) the preliminary and final forms required to be delivered to the California Debt and Investment Advisory Commission pursuant to Section 53583 of the Government Code of the State of California and Section 8855(i) and (j) of the Government Code;
(xvi) a copy of the executed Blanket Issuer Letter of Representations by and between the Authority and DTC relating to the book-entry system; (xvii) the tax and nonarbitrage certificate by the Authority and the City in form and substance to the reasonable satisfaction of Bond Counsel, the Underwriter and Norton Rose Fulbright US LLP (“Underwriter’s Counsel”); (xviii) a Certificate of the City’s engineer documenting the value of the streets serving as the Leased Facilities in form and substance acceptable to the Underwriter; Attachment 8

103512921.2
16 (xix) an opinion of Underwriter’s Counsel in form and substance acceptable to the Underwriter;
(xx) a Rule 15c2-12 certificate, dated the date of the Preliminary Official Statement, of the City;
(xxi) a Rule 15c2-12 certificate, dated the date of the Preliminary Official Statement, of the Authority;
(xxii) a certified copies of the Joint Exercise of Powers Agreement establishing the Authority, and all amendments thereto, and related certificates issued by the Secretary of State of the State; and
(xxiii) such additional legal opinions, Bonds, proceedings, instruments or other documents as the Underwriter or Underwriter’s Counsel may reasonably request.

Section 9. Changes in Official Statement. Within 90 days after the Closing or within 25 days following the “end of the underwriting period” (as defined in Rule 15c2-12), whichever occurs first, if any event relating to or affecting the Bonds, the Trustee, the City or the Authority shall occur as a result of which it is necessary, in the reasonable opinion of the Underwriter, to amend or supplement the Official Statement in order to make the Official Statement not misleading in any material respect in the light of the circumstances existing at the time it is delivered to a purchaser, the Authority will forthwith prepare and furnish to the Underwriter an amendment or supplement that will amend or supplement the Official Statement so that it will not contain an untrue statement of a material fact or omit to state a material fact necessary in order to make the statements therein, in the light of the circumstances existing at the time the Official Statement is delivered to purchaser, not misleading. The City and the Authority shall cooperate with the Underwriter in the filing by the Underwriter of such amendment or supplement to the Official Statement with the MSRB. The Underwriter acknowledges that the “end of the underwriting period” will be the date of Closing unless the Underwriter otherwise notifies the City in writing that it still owns some or all of the Bonds.

Section 10. Expenses. (a) Whether or not the Underwriter accepts delivery of and pays for the Bonds as set forth herein, it shall be under no obligation to pay, and the Authority shall pay, or cause the City to pay, out of the proceeds of the Bonds or any other legally available funds of the City or the Authority, all expenses incidental to the performance of the Authority’s obligations hereunder, including but not limited to the cost of printing and delivering the Legal Documents to the Underwriter; the costs of printing and shipping and electronic distribution of the Preliminary Official Statement and the Official Statement in reasonable quantities; the fees and disbursements of the Authority, the Trustee and its counsel, Bond Counsel, Authority Counsel, the City Attorney, accountants, engineers, appraisers, economic consultants and any other experts or consultants retained by the City or the Authority in connection with the issuance and sale of the Bonds; rating agency fees; advertising expenses; and any other expenses not specifically enumerated in paragraph (b) of this Section incurred in connection with the issuance and sale of the Bonds. The Authority shall pay, or cause the City to pay out of the proceeds of the Bonds, for any expenses incurred by the Underwriter on behalf of the City’s or the Authority’s employees and representatives which are incidental to implementing this Purchase Agreement, including, but not limited to, meals, transportation, and lodging of those employees and representatives. (b) Whether or not the Bonds are delivered to the Underwriter as set for herein, the Authority shall be under no obligation to pay, and the Underwriter shall be responsible for and pay (which may be included as an expense component of the Underwriter’s discount), MSRB, CUSIP Bureau and CDIAC fees and expenses to qualify the Bonds for sale under any “blue sky” laws; and all other expenses incurred Attachment 8

103512921.2
17 by the Underwriter in connection with its public offering and distribution of the Bonds not specifically enumerated in paragraph (a) of this Section, including the cost of preparing this Purchase Contract and other Underwriter documents, travel expenses and the fees and disbursements of Underwriter’s Counsel.

Section 11. Notices. Any notice or other communication to be given to the Underwriter under this Purchase Agreement may be given by delivering the same in writing to Piper Sandler & Co., 50 California Street, Suite 3100, San Francisco, CA 94111, Attention: Ralph J. Holmes, Managing Director. Any notice or communication to be given the Authority under this Purchase Agreement may be given by delivering the same in writing to the City at the address below, Attention: Executive Director.

Any notice or communication to be given the City under this Purchase Agreement may be given by delivering the same in writing to the City of Ukiah, 300 Seminary Avenue, Ukiah, CA 95482, Attention:

City Manager. All notices or communications hereunder by any party shall be given and served upon each other party.

Section 12. Parties in Interest. This Purchase Agreement is made solely for the benefit of the Authority, the City and the Underwriter (including the successors or assigns thereof) and no other person shall acquire or have any right hereunder or by virtue hereof. All representations, warranties and agreements of the Authority and the City in this Purchase Agreement shall remain operative and in full force and effect regardless of any investigation made by or on behalf of the Underwriter and shall survive the delivery of and payment for the Bonds.

Section 13. Counterparts. This Purchase Agreement may be executed by the parties hereto in separate counterparts, each of which when so executed and delivered shall be an original, but all such counterparts shall together constitute but one and the same instrument. [Remainder of page intentionally left blank.]
Attachment 8

NRF DRAFT
11/10/21
Section 14. Governing Law. This Purchase Agreement shall be governed by and construed in accordance with the laws of the State.

PIPER SANDLER & CO.

By:

Ralph J. Holmes
Managing Director
Accepted:

UKIAH PUBLIC FINANCING AUTHORITY
By:

Sage Sangiacomo, Executive Director
Time of Execution: ____:____
Accepted:

CITY OF UKIAH
By:

Sage Sangiacomo, City Manager
Time of Execution: ____:____
Attachment 8

103512921.2
A-1

EXHIBIT A

MATURITY SCHEDULE
Maturity
Date
Principal
Amount
Interest
Rate Yield Price
10% Test
Used
Hold-theOffering Price
Rule Used
$_______ _____% Term Bonds due April 1, 20__ Yield: ___%; Price: ____ $________ ____% Term Bonds due April 1, 20__ Yield: ____%; Price: _____ __________________
[
* Priced to the first redemption date at par.]
Attachment 8

103512921.2
B-1

EXHIBIT B
$__________

UKIAH PUBLIC FINANCING AUTHORITY
LEASE REVENUE BONDS, SERIES 2022
(CAPITAL PROJECTS)

ISSUE PRICE CERTIFICATE
The undersigned, on behalf of Piper Sandler & Co. (the “Underwriter”), hereby certifies as set forth below with respect to the sale and issuance of the above-captioned obligations (the “Bonds”).

1. Sale of the [Bonds][10% Maturities]. As of the date of this Certificate, for each Maturity of the [Bonds][10% Maturities], the first price at which a Substantial Amount of such Maturity of the Bonds was sold to the Public is the respective price listed in Schedule A.

2. Initial Offering Price of the [Bonds][Undersold Maturities]. (a) The Underwriter offered the [Bonds][Undersold Maturities] to the Public for purchase at the respective initial offering prices listed in Schedule A (the “Initial Offering Prices”) on or before the Sale Date. A copy of the pricing wire or equivalent communication for the Bonds is attached to this Certificate as Schedule B.
(b) As set forth in the Bond Purchase Agreement, the Underwriter has agreed in writing that, for each Maturity of the [Bonds][Undersold Maturities], it would neither offer nor sell any of the Bonds of such Maturity to any person at a price that is higher than the Initial Offering Price for such Maturity during the Offering Period for such Maturity, nor would it permit a related party to do so. Pursuant to such agreement, the Underwriter has neither offered nor sold any Maturity of the [Bonds][Undersold Maturities] at a price that is higher than the respective Initial Offering Price for that Maturity of the Bonds during the Offering Period.

3. Defined Terms.
[(a) 10% Maturities means those Maturities of the Bonds shown in Schedule A hereto as the “10% Maturities.”]
(b) Issuer means Ukiah Public Financing Authority.
(c) Maturity means Bonds with the same credit and payment terms. Bonds with different maturity dates, or Bonds with the same maturity date but different stated interest rates, are treated as separate maturities.
[(d) Offering Period means, with respect to an Undersold Maturity, the period starting on the Sale Date and ending on the earlier of (i) the close of the fifth business day after the Sale Date (_____________, 2022), or (ii) the date on which the Underwriter has sold a Substantial Amount of such Undersold Maturity to the Public at a price that is no higher than the Initial Offering Price for such Undersold Maturity.]
Attachment 8

103512921.2
B-2
(e) Public means any person (including an individual, trust, estate, partnership, association, company, or corporation) other than a Regulatory Underwriter or a related party to a Regulatory Underwriter. The term “related party” for purposes of this Certificate generally means any two or more persons who have greater than 50 percent common ownership, directly or indirectly. (f) Regulatory Underwriter means (i) any person that agrees pursuant to a written contract with the Issuer (or with the lead underwriter to form an underwriting syndicate) to participate in the initial sale of the Bonds to the Public, and (ii) any person that agrees pursuant to a written contract directly or indirectly with a person described in clause (i) of this paragraph to participate in the initial sale of the Bonds to the Public (including a member of a selling group or a party to a retail distribution agreement participating in the initial sale of the Bonds to the Public). (g) Sale Date means the first day on which there is a binding contract in writing for the sale of a Maturity of the Bonds. The Sale Date of the Bonds is ___________, 2022. (h) Substantial Amount means ten percent.
[(i) Undersold Maturities means those Maturities of the Bonds shown in Schedule A hereto as the “Undersold Maturities.”]
The undersigned understands that the foregoing information will be relied upon by the Issuer with respect to certain of the representations set forth in the Tax and Nonarbitrage Certificate and with respect to compliance with the federal income tax rules affecting the Bonds, and by Jones Hall, A Professional Law Corporation, in connection with rendering its opinion that the interest on the Bonds is excluded from gross income for federal income tax purposes, the preparation of Internal Revenue Service Form 8038-G, and other federal income tax advice it may give to the Issuer from time to time relating to the Bonds.

PIPER SANDLER & CO., as Underwriter
By: ___________________________________
Name: ________________________________
Dated: _________, 2022
Attachment 8

103512921.2
C-1

EXHIBIT C

FORM OF DISCLOSURE COUNSEL OPINION
Attachment 8

Agenda Item No: 12.a.

MEETING DATE/TIME: 1/19/2022
ITEM NO: 2022-26

AGENDA SUMMARY REPORT
SUBJECT: Receive Status Report and Consider Any Action or Direction Related to the Novel Coronavirus (COVID-19) Emergency Including Operational Preparedness and Response; Continuity of City Operations and Services; Community and Business Impacts; and Any Other Related Matters.

DEPARTMENT: City Manager /
Admin PREPARED BY: Tami Bartolomei, Office of Emergency Services Coordinator PRESENTER: Tami Bartolomei, Office of Emergency
Management Coordinator
ATTACHMENTS:

None
Summary: The City Council will receive a status report and consider any action or direction related to the Novel Coronavirus (COVID-19) Emergency including operational preparedness and response; continuity of City operations and services; community and business impacts; and any other related matters.

Background: On March 4, 2020, California Governor Gavin Newsom declared a State of Emergency in California in response to the COVID-19 pandemic.

The County of Mendocino declared a State of Emergency related to the COVID-19 on March 4, 2020.

On March 17, 2020, the City Manager, acting as the Director of Emergency Services, declared the existence of a local emergency.

On March 18, 2020, City Council approved a Resolution ratifying the proclamation declaring the existence of a local emergency.

Since the onset of the emergency, the City of Ukiah has worked to respond to the public health and safety needs of the community in cooperation with the County of Mendocino and other partners. The local response for public health is lead regionally by the County of Mendocino and the County's Public Health Officer. In addition, the City of Ukiah has worked to maintain the continuity of public services including public safety, water, sewer, electric, airport, public works, and other essential activities.

Discussion: As the coronavirus “COVID-19” continues to evolve, the City of Ukiah continues to monitor the situation and respond to emerging needs of the community. The City is in continued contact with local and state agencies, as well as community partners, hospitals, schools, and neighboring cities to ensure we have the most updated information pertaining to COVID-19 and are coordinating efforts.

Reports and/or information from the City of Ukiah's Emergency Operation Center (EOC) may include, as necessary:
* Emergency Operation Center (EOC) Status
* COVID-19 Case Updates
* Public Information Officer
* Medical Services

* School/Education
* Public Safety (Police/Fire/EMS)
* Shelter in Place Monitoring and Compliance
* Community Service Groups
* Homeless Response
* Business Impacts/Services
* Public Infrastructure/Construction Status
* City Finance
* Recovery Efforts and Planning
* Other Related matters
Staff will provide a status report to City Council and will seek direction or action on operational preparedness and response; continuity of City operations and services; community and business impacts; and any other related matters.

Go to the City's website (www.cityofukiah.com) for direct access to information related to the Novel Coronavirus (COVID-19) emergency including local updates, City Services, Community/Resident Information, and Business Resources.

Recommended Action: Receive status report and consider any action or direction related to the Novel Coronavirus (COVID-19) Emergency including operational preparedness and response; continuity of City operations and services; community and business impacts; and any other related matters.

BUDGET AMENDMENT REQUIRED: N/A
CURRENT BUDGET AMOUNT: N/A
PROPOSED BUDGET AMOUNT: N/A
FINANCING SOURCE: N/A
PREVIOUS CONTRACT/PURCHASE ORDER NO.: N/A
COORDINATED WITH: Sage Sangiacomo, City Manager

Agenda Item No: 12.b.

MEETING DATE/TIME: 1/19/2022
ITEM NO: 2022-1218

AGENDA SUMMARY REPORT
SUBJECT: Determination of Notification of Intent to Adjust Curbside Collection and Transfer Station Service Rates in Compliance with Solid Waste Contracts, and Initiation of Proposition 218 Protest Period for Residential Curbside Collection Rates.

DEPARTMENT: Finance PREPARED BY: Dan Buffalo, Finance Director, Sage Sangiacomo, City Manager
PRESENTER: Dan Buffalo, Director of Finance
ATTACHMENTS:

1. SWS UWS April 2022 Adjustment

2. Rate Comparison
Summary: The City Council is asked to receive and review a determination from the City Manager of proposed rates, as intended to be adjusted by Ukiah Waste Solutions, Inc. and Solid Waste Systems, Inc. for curbside and Ukiah Transfer Station services, respectively. A five-year financial review of the companies was also due and completed. The proposed rate adjustments are, by contract, allowed annually to address cost adjustments borne by the City's franchise solid waste contractor. Those operating costs are limited and specifically identified by contract as pass-through or affected by inflation, measured by the consumer price index (CPI-u).

Background: Pursuant to contracts between the City of Ukiah and Ukiah Waste Solutions, Inc., and City of Ukiah and Solid Waste Systems, Inc. (collectively referred to herein as the "Company"), notices of intent were submitted to the City by the Company on August 13, 2021, for adjustments to collection rates for residential and commercial curbside service and rates for Ukiah Transfer Station services. These notices are allowed by contract annually, and any subsequent adjustments to rates are applied to the next calendar year. Corresponding notices are further detailed in the discussion section and included as attachments to this report.

Additionally, per the agreements between the City and Company, the City completed a five-year review of the Company's financial statements through December 30, 2020. The subsequent analysis and other due diligence completed was included in this City Manager's report supporting these rate revisions.

Because of the additional time needed to examine and complete its due diligence of the five-year financial review, the City and Company agreed to delay any subsequent rate adjustment to March 2022 following a Proposition 218 protest period.

Discussion: The Finance Department was tasked to review the methodology and supporting materials used by the Company to arrive at the proposed rate adjustments to evaluate its conformity with contract requirements. As required by contract and following Finance's review, the City Manager reviewed the notices of intent from the Company received in August, 2021. The Department also coordinated with the Company in the five-year review, starting with the receipt of reviewed financial statements, compiled and reported on by an independent CPA firm, Moss Adams (CPA Firm). As part of its due diligence, the Department examined those reviewed statements and the report from CPA Firm, concluding that the revenue, expenses, and net profit (and losses) were reasonable in the context of the Company's proposed rate adjustments.

The Company has proposed making changes to its pricing schedule for curbside collection in addition to the regular annual adjustment. City management reviewed these changes in the context of the five-year review and met with the Company to discuss them in detail. Staff was satisfied with the reasons and methodology presented and, after submitting feedback to the Company, received revised rate changes, finding them reasonable in support of the need for this pricing rebalance.

Requested changes made by the Company result in modifications to pricing of all services. Notably, these changes help to address the effects on service costs of significantly rising inflation for both the Company and city customers by more equitably distributing such costs to the customer base. This was one of the purported outcomes of the five-year review: to better align costs, pricing, and service delivery to customers given actual costs incurred over that period.

Additionally, included in this rebalancing and rate adjustment (and as permitted agreement) are pass-through costs related to performance of the five-year review, and for amounts authorized by the Council to be paid for mitigation expenses related to solid waste collection, such as to the Mendocino Solid Waste Management Authority (MSWMA).

No rebalancing to the rate schedule for the Transfer Station was requested by the Company. The adjustments presented here are simply to account for pass-throughs and other costs that were experienced regularly during prior annual adjustments. The Company expressed an interest in revisiting a rebalancing approach to Transfer Station rates sometime in the near future (similar to curbside discussed earlier), and staff agreed it was best broached at a later date when potential costs related to the landfill closure and post closure were better understood.

For both curbside and transfer station services, the regular cost elements under review consist of changes to the following:

Curbside collection costs:
-fuel
-landfill disposal fees for garbage
-landfill disposal fees for mixed organic waste
-recycling processing costs
-operating costs affected by inflation (CPI-u)
-five-year financial review (independent CPA services)
-mitigation costs, including authorized amounts paid to MSWMA Transfer Station costs:
-fuel
-disposal and processing costs of garbage and recycling -property tax based on tonnage
-operating costs affected by inflation (CPI-u)
The consumer price index (CPI-u) used was for the San Francisco-Oakland-San Jose area, which is the most relevant inflationary metric geographically and the index used for this analysis in the past.

It is important to note that the City is responsible for ensuring the agreement between it and the Company is maintained well and that value is maximized for the citizenry. This is done through a comprehensive annual review process, including examining financials, service delivery, and by comparing our service arrangements to those enjoyed by other sister agencies and neighboring communities.

The determination by the Finance Department and recommendation to the City Manager after review and testing of information provided by the Company is that the financial justifications for rate adjustments are reasonable and justifiable. Further, the value provided to the citizenry of Ukiah through the agreements with the Company remains high, offering a quality level of service at a competitive price. A rate comparison to

neighboring agencies is attached as Attachment 2.

Staff recommends initiation of a Prop 218 protest period for these adjusted rates before final implementation corresponding with the completion of the five-year review. Five years is generally considered the appropriate and regular duration of time when property-related rates and fees should be evaluated as a whole and reestablished through the 218 process.

Supporting documentation provided by the Company for Ukiah Transfer Station services and curbside services is attached here as Attachment 1. Specifically, the rates for transfer station and curbside services are presented on pages 4 and 10 respectively of the pdf. Information found in these rate schedules will be included in the 218 notice following initiation of the process by Council.

The proposed rate adjustment does not include the reopening of the recycling buy-back center, which would require a more significant rate increase (to all users) in order to be financially feasible along with need to address other problems previously discussed and considered by Council. The collapse of the recycling market is a statewide--even nationwide--issue that remains without a solution. State law mandates that, in the absence of a buy-back center within one-half mile, retailers that sell beverages with California Redemption Value (CRV) must also take back empties or pay fines of $100 per day to the State. However, many retailers are out of compliance with this law and/or face difficulties with implementation, leaving consumers without an option to return their recyclables for cash. CRV monies are collected by CalRecycle, not by local governments or local waste haulers. Those funds are used to refund recycling buy-back centers for the recyclables they take in. However, money collected from recyclables that are not redeemed for cash stays with CalRecycle.

Recommended Action: Confirm the determination of the City Manager, as reported here, of compliance with the provisions of the agreements between the City of Ukiah and Ukiah Waste Solutions, Inc. and Solid Waste Systems, Inc. regarding the company's notice of intent to adjust curbside collection and transfer station rates, authorize the initiation of the Proposition 218 protest period for residential curbside collection rates, and schedule the subsequent protest hearing for March 2, 2022.

BUDGET AMENDMENT REQUIRED: N/A
CURRENT BUDGET AMOUNT: N/A
PROPOSED BUDGET AMOUNT: N/A
FINANCING SOURCE: N/A
PREVIOUS CONTRACT/PURCHASE ORDER NO.: N/A
COORDINATED WITH: N/A

COSTS Subject to adjustment Cost Index
Adjustment
Allowed
Operating Costs subject to CPI $2,409,140.74 CPI $ 106,243.11 Fuel $196,025.33 Fuel $ 97,631.75
Disposal - Garbage $830,562.84 Contract rate Pass Through $ 32,973.34 Disposal - Processing $395,960.72 Negotiated Pass Through $ 30,964.13 Disposal - Processing Recycling $204,392.43 Pass Through $ (3,916.08) Pass Through $ -
Maint / Prop Tax $2.36/ton $104,909.29 CPI Pass Through $ 4,626.50 City Rent $10/ton $444,531.05 Lease rate Pass Through $ - City Landfill Fee $14/ton $622,343.47 Set by City Pass Through $ - MSWMA Fee $6.50/ton $288,945.09 Set by City Pass Through $ - Total COSTS Subject to adjustment $5,496,810.96 $ 268,522.75 Adjusted Costs $ 5,765,333.71
Adjustments: $0.00 $ -
Total Adjustments $0.00 $ -
Adjusted Cost $5,496,810.96 $ 268,522.75
Revenue base
Comparison Year Revenue $4,162,780.83
Fuel $97,631.75
Disposal - garbage $32,973.34
Disposal - processing $30,964.13
CPI adjustment $106,243.11
City Landfill Fee $14/ton $0.00
Maint / Prop Tax $2.36/ton $4,626.50
Disposal Processing - Recycling -$3,916.08
$0.00
Revenue change - Contractor $268,522.75 Less: City & MSWMA Fee Adjustments Adjusted revenue $4,431,303.58
Adjusted Revenue Difference $268,522.75
Current Adjustment New
Contractor Rate increase as a percent 6.45% $78.53 $5.07 $83.60 MSWMA Rate increase as a percent 0.00% $6.50 $0.00 $6.50 City Rate increase as a percent 1.87% $24.00 $0.45 $24.45 $109.03 Total Rate $114.55
EFFECTIVE RATE ADJUSTMENT PERCENT 5.06%
Solid Wastes Systems Transfer Station
Effective Date April, 2022
Annual Adjustment Calculations
Using 2020 Year Data
Attachment 1

Solid Wastes Systems Transfer Station
Effective Date April, 2022
Annual Adjustment Calculations
Using 2020 Year Data
Fuel - June to June (EIA Petroleum & Other Liquids)
See Fuel cost adjustment worksheet
CPI Bay Area- June to Nov
June 2020 Nov 2021 Index Increase (Decrease)
300.032 313.265 13.233
CPI % Change 4.41%
Landfill Fee Jan to Jan CPI Jun to Jun CPI Jun to Nov 90% January 2021 January 2022 2020 2021 Increase (Decrease) $ 25.36 $ 26.37 300.032 313.265 13.233 3.97%
Disposal - Garbage Cost % Change 3.97%
Disposal Processing Fee Jan to Jan CPI Jun to Jun CPI Jun to Nov January 2021 January 2022 2020 2021 Increase (Decrease) $ 32.10 $ 34.61 257.797 277.948 20.151
Disposal - Green Waste Cost % Change 7.82%
Transfer Station MSW Tonnage at gate, Year to Year
June 2020 Y/E 2020 Increase (Decrease)
42,800.54 44,453.09 1,652.55
Tonnage % Change 3.86%
City Landfill Fee June to June
January 2021 January 2022 Increase (Decrease)
$ 14.00 $ 14.00 $ 0.00
City Landfill Fee % Change 0.00%
MSWMA Fee June to June
January 2021 January 2022 Increase (Decrease)
$ 6.50 $ 6.50 $ 0.00
MSWMA Fee % Change 0.00%
Recycle Tip Fee June to June
Y/E June 2020 Y/E 2020 Increase (Decrease)
$208,308.51 $204,392.43 -$3,916.08
Rate Review Cost MSW Tons 12 Mo. MSW Tons 9 Mo. Per Ton $15,000.00 44,453.09 33,339.82 $0.45
Retrieved over 9 months (April - Dec 2022)
Worksheet for computing the change in various indexes and factors which comprise the components on which rates are adjusted
Attachment 1

Fuel Revenue Adjustment Worksheet, based on Fuel Index change, June to June SWS Base Year Fuel Index and Cost 3.216 $201,261.07 June 2020 after 5 yr Review - Jan 2021 Annual adjustment based on Fuel Index change, year to year (using example fuel index changes) 1 Estimated Fuel index adjustment at Dec 2021 4.776 48.51% $97,631.75 Plus: Base Year Cost X Index Change Revenue adjustment for January 2022 rate revision $97,631.75 $0.00 Less: Prior Fuel Cost applied to rate $298,892.82 Fuel Cost Allowed Year 1 - 2022
2 Estimated Fuel index adjustment at June 2022 4.776 48.51% $97,631.75 Plus: Base Year Cost X Index Change Revenue adjustment for January 2023 rate revision $0.00 $97,631.75 Less: Prior Fuel Cost applied to rate $298,892.82 Fuel Cost Allowed Year 2 - 2023
3 Estimated Fuel index adjustment at June 2023 4.776 48.51% $97,631.75 Plus: Base Year Cost X Index Change Revenue adjustment for January 2024 rate revision $0.00 $97,631.75 Less: Prior Fuel Cost applied to rate $298,892.82 Fuel Cost Allowed Year 3 - 2024
4 Estimated Fuel index adjustment at June 2024 4.776 48.51% $97,631.75 Plus: Base Year Cost X Index Change Revenue adjustment for January 2025 rate revision $0.00 $97,631.75 Less: Prior Fuel Cost applied to rate $298,892.82 Fuel Cost Allowed Year 4 - 2025
5 Estimated Fuel index adjustment at June 2025 4.776 48.51% $97,631.75 Plus: Base Year Cost X Index Change Revenue adjustment for January 2026 rate revision $0.00 $97,631.75 Less: Prior Fuel Cost applied to rate $298,892.82 Fuel Cost Allowed Year 5 - 2026
Index Change - New
vs. Base Year
Attachment 1

Calculated NEW
2022 2022
2021 FA Rate
Item Rate Rate Rounded *
MSW - Ton $109.00 $114.52 $114.50 This rate adjusted by 5.06% (effective rate) MSW - Yard $24.40 $25.70 $25.70 This rate = 24.05% of per ton contractor gate fee PLUS per ton City & MSWMA fees divided by 5.54 (yards / ton) Minimum Gate Fee - MSW Up to 3 cans $12.20 $12.85 $12.85 This rate = MSW Yard fee / 2 Per Can Rate - 32 gallon After 3 cans $4.05 $4.28 $4.30 This rate - Min Gate fee / 3 Green Waste - Ton $51.70 $55.03 $55.05
Green Waste - Yard $7.50 $7.98 $8.00
Minimum Gate Fee - Green Waste $7.40 $7.88 $7.90
Mixed Load - Additional Charge $23.10 $24.59 $24.60
Appliances $12.65 $13.47 $13.45
Oil Filters - Small $0.45 $0.48 $0.50
Oil Filters - Medium $0.80 $0.85 $0.85
Oil Filters - Large $1.10 $1.17 $1.15
Concrete - Ton $81.05 $86.28 $86.30
Dirt - Ton $81.05 $86.28 $86.30 These rates adjusted by 6.45% (contractor rate) Sheetrock - Clean $51.70 $55.03 $55.05
Sheetrock - Dirty $81.05 $86.28 $86.30
Tires - Bicycle $1.45 $1.54 $1.55
Tires - Motorcycle $2.80 $2.98 $3.00
Tires - Passenger Car $4.25 $4.52 $4.50
Tires - Passenger Car with Rim $6.60 $7.03 $7.05
Tires - Truck $9.00 $9.58 $9.60
Tires - Truck with Rim $12.15 $12.93 $12.95
Tires - Tractor 53.40 - 403.90 56.84 - 429.95 56.85 - 429.95 E-Waste - Computers No Charge No Charge No Charge
E-Waste - Monitors No Charge No Charge No Charge
Scrap Metal No Charge No Charge No Charge
* Rates are rounded to the nearest five cents
Transfer Station Rate Schedule
Solid Wastes Systems, Inc.

Effective Date April, 2022
Attachment 1

NEW
2022
Rate
Item Rounded *
MSW - Ton $114.50
MSW - Yard $25.70
Minimum Gate Fee - MSW Up to 3 cans $12.85
Per Can Rate - 32 gallon After 3 cans $4.30
Green Waste - Ton $55.05
Green Waste - Yard $8.00
Minimum Gate Fee - Green Waste $7.90
Mixed Load - Additional Charge $24.60
Appliances $13.45
Oil Filters - Small $0.50
Oil Filters - Medium $0.85
Oil Filters - Large $1.15
Concrete - Ton $86.30
Dirt - Ton $86.30
Sheetrock - Clean $55.05
Sheetrock - Dirty $86.30
Tires - Bicycle $1.55
Tires - Motorcycle $3.00
Tires - Passenger Car $4.50
Tires - Passenger Car with Rim $7.05
Tires - Truck $9.60
Tires - Truck with Rim $12.95
Tires - Tractor 56.85 - 429.95
E-Waste - Computers No Charge
E-Waste - Monitors No Charge
Scrap Metal No Charge
* Rates are rounded to the nearest five cents
Solid Wastes Systems, Inc.

Transfer Station Rate Schedule
Effective Date April, 2022
Attachment 1

SWS Transfer Station Agreement
Adjustment Adjustment Index Cost
Cost/Rev Period Method Used Group
1,2,4 Construction / Lease $2.36 / MSW ton Annual 100% of index change CPI - US Cities CPI-U Base Rate as Adjusted 3 Construction / Lease $10.00 / MSW ton Time to Time Per City N/A Pass Through 1,2 Fuel Annual 100% of index change eia CA #2 Diesel Retail all sellers Base Rate as Adjusted Disposal - Landfill Time to Time Per Landfill Agreement N/A Pass Through 9 Disposal - Processing Time to Time Per Processor Agreements N/A Pass Through 1,2 Operating Costs Annual 100% of index change CPI - US Cities CPI-U Base Rate as Adjusted Per Ton Contractor Gate
4 City Franchise Fee $2.00 Time to Time Per City N/A Pass Through 4 MSWMA Fee $5.00 Time to Time Per MSWMA N/A Pass Through 6,7,8 TOTAL GATE FEE
Notes
1 Agreement should state mutually agreed upon Index if Index becomes unavailable 2 June to June change
3 Lease rate replaces construction rate January 1, 2017 - $10.00 per ton MSW 4 Part of Construction rate left in gate rate to cover triple net lease costs (adjusts by CPI) starting January 1, 2017. i.e.. Prop tax, Insurance & R&M. 4 Agreement should state initial rate, subject to change by City / MSWMA action 5 Exhibit of calculation to be made part of agreement
6 SWS requests new rate by Aug 15, City approves by Oct 15, Pub Notice given by Nov 1, Adjusted Rate goes into effect following January 1. 7 Per Yard Gate Fee shall be equal to 24.05% of per ton contractor gate fee PLUS per ton City & MSWMA fees divided by 5.54 (MSWMA yards / ton) 8 Rate change is calculated as follows: % annual adjustment X actual prior year (July to June) component cost = new funds needed / total gate revenue = % adjustment to gate rate.
9 Processing contract mutually agreed to with city - i.e. PRS grinding yard rate charged SWS for greenwaste.

City can direct SWS to implement other programs, provided the costs of such programs are covered through increased rates.

Attachment 1

SWS CPI Operating Costs
TOTAL Expenses 2020 $5,578,219.35
Less:

Fuel -$196,025.33
Disposal - Garbage -$830,562.84
Disposal - Processing -$395,960.72
Disposal - Recycling -$204,392.43
Maint / Prop Tax $2.36/ton -$104,909.29
City Rent $10/ton -$444,531.05
City Landfill Fee $14/ton -$622,343.47
MSWMA Fee $6.50/ton -$273,224.86
Scrap Metal Cost $0.00
Buyback Recycle Purchase Cost $0.00
Compost / Landscape Cost -$97,128.62
TOTAL CPI Allowed Operating Costs $2,409,140.74
Comparison Year Revenue
Total Revenue $5,617,379.43
Less:

Scrap Metal $0.00
Buyback $0.00
Compost / Landscape -$114,499.22
City Rent $10/ton -$444,531.05
City Landfill Fee $14/ton -$622,343.47
MSWMA Fee $6.50/ton -$273,224.86
Comparison Year Revenue $4,162,780.83
Attachment 1

Comparison Year Costs 2020 Index
Increase /
Decrease
Allowed
TOTAL COSTS $4,498,471.74
Less: Fuel Cost $133,120.59 Fuel $78,995.17
Less: Disposal Fees - Garbage $1,245,894.12 SWS TS Gate $62,917.65 Less: Disposal Fees - Mixed Organic Waste $147,429.23 Negotiated $11,705.88 Less: Processing - Recycling $178,638.35 Contract $3,046.05 Less: City Landfill Closure Costs $60,000.00 Set by City $0.00 Less: City Commercial Oversight fee $9,999.96 Set by City $0.00 Collection Costs $2,723,389.49
Change in Franchise Fee & Billing Costs $60,753.56
Collection COSTS Subject to CPI adj. $2,723,389.49 CPI BA $120,101.48 $337,519.79 TOTAL
Total
Revenue base Residential Commercial Roll Off Revenue

27.74% 65.77% 6.49% 100.00%
$1,310,791.27 $3,108,165.75 $306,878.86 $4,725,835.88
2020 Comparison Year Revenue $1,310,791.27 $3,108,165.75 $306,878.86 $4,725,835.88 Fuel Cost $21,910.66 $51,954.85 $5,129.66 $78,995.17
Disposal Fees - MOW $3,246.83 $7,698.92 $760.14 $11,705.89 $0.00 $0.00 $0.00 $0.00
$0.00 $0.00 $0.00 $0.00
Processing - Recycle $844.87 $2,003.38 $197.80 $3,046.05 Landfill closure cost $0.00 $0.00 $0.00 $0.00
Commercial Oversight fee $0.00 $0.00 $0.00 $0.00
Other Regulatory & Governmental Costs $0.00 $0.00 $0.00 $0.00 Disposal Fees - Garbage $17,451.28 $41,380.72 $4,085.65 $62,917.65 CPI adjustment $33,312.20 $78,990.32 $7,798.96 $120,101.48 Total before franchise and billing fees $1,387,557.11 $3,290,193.94 $324,851.07 $5,002,602.12 Franchise & Billing Fees $16,851.04 $39,957.41 $3,945.12 $60,753.56 Rate Review Cost (9mo) $20,000.00 $5,547.34 $13,153.93 $1,298.73 $20,000.00 Abatement Recovery (9mo) $39,253.33 $10,887.58 $25,816.78 $2,548.97 $39,253.33 Indexed Adjusted revenue $1,420,843.07 $3,369,122.06 $332,643.89 $5,122,609.02 Indexed 2022 Revenue Adjustment $110,051.80 $260,956.31 $25,765.03 $396,773.14 5 Yr Cost Recovery Adjustment $23,119.20 $81,495.60 $104,614.80 Actual Collected Abatement & Review Cost Adustment ($14,813.33) Adjusted revenue with 5 Yr Cost Recovery $5,212,410.49
Ukiah Waste Solutions Curbside Rate
Annual Adjustment Calculations
Effective Date April 1, 2022
Per Adjustment Summary
Attachment 1

Ukiah Waste Solutions Curbside Rate
Annual Adjustment Calculations
Effective Date April 1, 2022
June 2020 Nov 2021 Index Increase (Decrease)
300.032 313.265 13.233
CPI % Change 4.41%
January 2021 April 2022 Increase (Decrease)
$109.00 $114.50 $5.50
Transfer Station Fee % Change 5.05%
June 2020 Nov 2021 Increase (Decrease)
PRS 90% CPI Jun to Jun 300.032 313.265 13.233 3.97%
CCC 90% CPI Jun to Jun 300.032 313.265 13.233 3.97%
$57.45 $62.01 7.94%
Disposal Fee - Green Waste % Change 7.94%
January 2020 January 2021 Increase (Decrease)
$60,000.00 $60,000.00 $0.00
Landfill Closure Costs % Change 0.00%
January 2020 January 2021 Increase (Decrease)
$10,000.00 $10,000.00 $0.00
Commercial Oversight Fee % Change 0.00%
Y/E June 2020 Y/E June 2021 Increase (Decrease)
$164,618.85 $167,664.90 $3,046.05
City Franchise Fee 15% City Billing Fee - Residential Customers 3% Recycle Tip Fee June to June
Commercial Oversight Fee Jan to Jan
Landfill Closure Costs Jan to Jan
Mixed Organic Waste Disposal Fee (Disposal - Green Waste) Jan to Jan Transfer Station Fee (Disposal Fees - Garbage) Jan to Jan CPI Bay Area - June to June (Index)
Fuel - June to June (EIA Petroleum & Other Liquids)
See Fuel Cost Adjustment Worksheet
Attachment 1

Effective Date April 1, 2022
Current New
2021 2022 Total Monthly
Service Level Rate Rate Adjustment
Curbside Service
No Service Minimum Charge $ 10.00 $ 10.36 $ 0.36
20 gallon can rate $ 19.97 $ 21.65 $ 1.68
32 gallon can rate $ 21.74 $ 24.39 $ 2.65
68 gallon can rate $ 51.36 $ 55.67 $ 4.31
95 gallon can rate $ 72.36 $ 78.44 $ 6.08
Other combinations - rate per gallon $ 0.85 $ 0.92 $ 0.07 1 yard bin rate $ 153.76 $ 173.44 $ 19.68

1.5 yard bin rate $ 181.68 $ 216.80 $ 35.12
2 yard bin rate $ 242.27 $ 281.84 $ 39.57
3 yard bin rate $ 363.37 $ 411.92 $ 48.55
4 yard bin rate $ 484.49 $ 542.00 $ 57.51
6 yard bin rate $ 726.75 $ 787.80 $ 61.05
Packout Service
20 gallon can rate $ 25.07 $ 27.18 $ 2.11
32 gallon can rate $ 28.46 $ 31.93 $ 3.47
68 gallon can rate $ 66.86 $ 72.48 $ 5.62
95 gallon can rate $ 96.58 $ 104.69 $ 8.11
Other combinations - rate per gallon $ 1.03 $ 1.12 $ 0.09 Remote Area Service
Add to the Packout Service rate. $ 9.49 $ 10.29 $ 0.80
In areas with limited access, an additional fee is charged to fund the costs of special equipment and special handling necessary to provide garbage pickup services. This fee is in addition to the "Packout Service" fee listed in this schedule.

Commercial / Multi-Family Service
20 gallon can rate $ 20.73 $ 22.47 $ 1.74
32 gallon can rate $ 24.12 $ 27.06 $ 2.94
68 gallon can rate $ 57.02 $ 61.81 $ 4.79
95 gallon can rate $ 80.35 $ 87.10 $ 6.75
1 yard bin rate $ 153.76 $ 173.44 $ 19.68

1.5 yard bin rate $ 181.68 $ 216.80 $ 35.12
2 yard bin rate $ 242.27 $ 281.84 $ 39.57
3 yard bin rate $ 363.37 $ 411.92 $ 48.55
4 yard bin rate $ 484.49 $ 542.00 $ 57.51
6 yard bin rate $ 726.75 $ 787.80 $ 61.05
Ukiah Waste Solutions, Inc.
2022 RATE ADJUSTMENT

SUMMARY OF RATE ADJUSTMENT FOR STANDARD SERVICES
Attachment 1

Calculation to adjust fuel costs
Effective Date January 1, 2022
Fuel Revenue Adjustment Worksheet, based on Fuel Index change, June to June UWS Base Year Fuel Index and Cost 3.216 $162,843.06 June 2020 after 5 yr Review - Jan 2021 Annual adjustment based on Fuel Index change, year to year (using example fuel index changes) 2 Fuel index adjustment at Dec 2021 4.776 48.51% $78,995.17 Plus: Base Year Cost X Index Change Revenue adjustment for January 2022 rate revision $78,995.17 $0.00 Less: Prior Fuel Cost applied to rate $241,838.23 Fuel Cost Allowed Year 1 - 2022
3 Estimated Fuel index adjustment at June 2022 4.776 48.51% $78,995.17 Plus: Base Year Cost X Index Change Revenue adjustment for January 2023 rate revision $0.00 $78,995.17 Less: Prior Fuel Cost applied to rate $241,838.23 Fuel Cost Allowed Year 2 - 2023
4 Estimated Fuel index adjustment at June 2023 4.776 48.51% $78,995.17 Plus: Base Year Cost X Index Change Revenue adjustment for January 2024 rate revision $0.00 $78,995.17 Less: Prior Fuel Cost applied to rate $241,838.23 Fuel Cost Allowed Year 3 - 2024
5 Estimated Fuel index adjustment at June 2024 4.776 48.51% $78,995.17 Plus: Base Year Cost X Index Change Revenue adjustment for January 2025 rate revision $0.00 $78,995.17 Less: Prior Fuel Cost applied to rate $241,838.23 Fuel Cost Allowed Year 4 - 2025
6 Estimated Fuel index adjustment at June 2025 4.776 48.51% $78,995.17 Plus: Base Year Cost X Index Change Revenue adjustment for January 2026 rate revision $0.00 $78,995.17 Less: Prior Fuel Cost applied to rate $241,838.23 Fuel Cost Allowed Year 5 - 2026
Index Change - New
vs. Base Year
Attachment 1

Recycle Charge or Payment
From To Tip / Credit
Zero Point $115.00 $154.99 $0.00
Tip Fee $105.00 $114.99 $15.00
Charge to Customer $95.00 $104.99 $25.00
$85.00 $94.99 $35.00
$75.00 $84.99 $45.00
$74.99 and below $55.00
PMT $155.00 $164.99 $5.00
Payment to Customer $165.00 $174.99 $10.00
$175.00 $184.99 $15.00
$185.00 $194.99 $20.00
$195.00 and up $25.00
Recycling Per Ton TOTAL
2020 Material CMV Tons Tip Fee/Pmt Fee / Pmt
Jul $45.51 315.95 $55.00 $17,377.25
Aug $51.09 303.41 $55.00 $16,687.55
Sep $57.23 306.01 $55.00 $16,830.55
Oct $60.38 265.45 $55.00 $14,599.75
Nov $64.18 255.45 $55.00 $14,049.75
Dec $68.45 285.06 $55.00 $15,678.30
2021
Jan $59.39 248.44 $55.00 $13,664.20
Feb $60.42 242.99 $55.00 $13,364.45
Mar $63.63 271.88 $55.00 $14,953.40
Apr $83.92 276.02 $45.00 $12,420.90
May $83.22 246.94 $45.00 $11,112.30
Jun $97.29 277.06 $25.00 $6,926.50
$167,664.90
Ukiah Waste Solutions Tip Fee or (Credit) Schedule
Market Value Grid
Attachment 1

Effective Date January 1, 2018 Adjustment Adjustment Index Cost Cost/Rev Period Method Used Group
1,2 Fuel Annual 100% of index change eia Ca #2 Diesel Retail all sellers Base Rate as Adjusted Disposal - Solid Waste Time to Time Per TS (SWS) Agreement N/A Pass Through 1,2 Operations (all other costs) Annual 100% of index change CPI - US Cities CPI-U Base Rate as Adjusted 3 Recycle Reduction Annual Per Recycle Agreement Rec Market Value Grid - $5 base Operating Cost Reduction 1,2 Green Waste Disposal $30 / Ton Annual Up to CPI (Contractor Choice) CPI - US Cities CPI-U Base Rate as Adjusted 1,2,8 Food Waste Disposal (Comm) Up to $40 / ton Annual Up to CPI (Contractor Choice) CPI - US Cities CPI-U Base Rate as Adjusted 4 City Franchise Fee 15% Time to Time City Action N/A Pass Through 4 City Bill Fee 3% Time to Time City Action N/A Pass Through 4 City Oversight Fee $10,000.00 Time to Time City Action N/A Pass Through 4 City Landfill Closure Fee $60,000.00 Time to Time City Action N/A Pass Through 6,9 TOTAL NET COST
Notes
1 Agreement should state mutually agreed upon Index if Index becomes unavailable 2 June to June change
3 Recycle Agreement with PRS renewable every 5 years with Base Market Value per mixed ton to provide for Rev sharing with City (reduction of operating costs). 4 Agreement should state initial rate, subject to change by City action 5 Exhibit of calculation to be made part of agreement
6 UWS requests new rate by Aug 15, City approves by Oct 15, Pub Notice given by Nov 1, Adjusted Rate goes into effect following January 1. 7 Agreement must provide for City Flow Control with language that directs flow to contractor facilities when available. 8 FOOD WASTE - UWS will implement a pilot and or full commercial food waste program in place by June 2013 provided proper permits can be obtained Details still to be worked out.
9 Rate change is calced as follows: % annual adjustment X actual prior year (July to June) actual component cost = new funds needed / collection revenue = % adjustment per rate. New cost adj dollars (fuel, disposal, city fees etc..) need to be adjusted for city fees - CPI adj does not.

RE-OPENER - the contract should have a mutual re-opener for other new items Ukiah Waste Solutions Curbside Agreement
Attachment 1

UWS disposal rate for MOW
Effective Date January 1, 2022
Current 2021 Tip Fee $59.13
$59.13
PRS 90% CPI 2021 3.97%
CCC 90% CPI 2021 3.97%

7.94%
MOW Tip Fee 2022 with CPI $63.82
Percentage Increase/Decrease 7.94%
Attachment 1

RESIDENTIAL / COMMERCIAL
Residential Carts 1 - 10*** 11 - 20 21 - 32 33 - 68 69 - 95 Gallons

8.40% 2022 Rates No Service Fee 1x/WK 1x/WK 1x/WK 1x/WK 1x/WK

8.4100% Roadside 10.36 N/A 21.65 24.39 55.67 78.44

12.19% Pack Out* 10.29 N/A 27.18 31.93 72.47 104.69

8.39% Remote** 20.58 N/A 37.47 42.22 82.76 114.98
* Pack Out service is limited to the elderly and disabled who apply directly through Ukiah Waste Solutions @ 707-234-6400. ** The additional charges of Remote service may be required for certain areas with difficult access. *** 10 gallon containers and rates are longer available to new customers effective January 1, 2018. Existing customers with these containers may continue to use them at the 20-gallon cart rate.

Commercial / Multi-Family Carts
2022 Rates 1 - 10*** 11 - 20*** 21 - 32 33 - 68 69 - 95 Gallon

8.39% 1 Can - 1x/WK N/A 22.47 27.06 61.81 87.10

8.40% 1 Can - 2x/WK 60.13 137.57 193.58

12.2% 1 Can - 3x/WK 100.48 210.92 294.70
2 Cans - 1x/WK 60.13 137.57 193.58
*** 10 gallon containers and rates are longer available to new customers effective January 1, 2018. Existing customers with these containers may continue to use them at the 20-gallon cart rate.

Commercial / Multi-Family Bins
Yards Number of pick-ups per week Extra
2022 Rates Dollars / Yard 1x/WK 2x/WK 3x/WK 4x/WK 5x/WK 6x/WK Pick-up

1.0 173.44 0.00 0.00 0.00 0.00 0.00 40.06

1.5 216.80 433.60 650.40 867.20 1,084.00 1,300.80 50.07

2.0 281.84 563.68 845.52 1,127.36 1,409.20 1,691.04 65.09

3.0 411.92 823.84 1,235.76 1,647.68 2,059.60 2,471.52 95.13

4.0 542.00 1,084.00 1,626.00 2,168.00 2,710.00 3,252.00 125.17

6.0 787.80 1,575.60 2,363.40 3,151.20 3,939.00 4,726.80 181.94 Extra p/u calculated at 1/wk divided by 4.33
Rate
Clean-Up Bins and Boxes 1/1/2022

3.0 Yd 3 day rental 136.27

15.0 Yd 7 day rental 308.77 Plus $114.50 per ton tip fee

20.0 Yd 7 day rental 308.77 Plus $114.50 per ton tip fee

30.0 Yd 7 day rental 308.77 Plus $114.50 per ton tip fee Compactors 308.77 Plus $114.50 per ton tip fee
Rate
Misc Charges 1/1/2022
Bulky Items (appliances, Lg Tires, Furniture etc..) 34.28 Plus tip fee Tires - each - (Automotive or motorcycle) 7.22
Damage Cart Replacement 93.28
Additional Green Waste or R/C Cart 9.19
Extra Residential Pick-up 8.95
Extra Commercial Pick-up 16.70
Compactor Cleaning 402.07
Container Cleaning 144.72
Locking bin, one-time setup fee 45.83 Plus Materials
Replacement Key 16.09
Contamination Fee 45.92
Returned Check Fee 35.00
Roll Off or Bin Extra Day Charge 16.70
Exchange Cart Size 34.43
Enclosure Fee - Unlock/Lock or Pull Out/Put In 12.64
Ukiah Waste Solutions, Inc.

April 1, 2022 Rate Schedule
Attachment 1

Attachment 1

Attachment 1

Attachment 1

Ukiah Waste Solutions, Inc.

Rate Comparison
Jurisdiction 20 Gal 32 Gal 64 Gal 96 Gal 2 Yard 3 Yard 4 Yard 6 Yard City of Ukiah Current 2021 $19.97 $21.74 $51.36 $72.36 $242.27 $363.37 $484.49 $726.75 City of Clearlake $20.46 $24.29 $42.55 $60.77 $291.58 $402.57 $534.86 $805.12 City of Ukiah Rate - Proposed $21.65 $24.39 $55.67 $78.44 $281.84 $411.92 $542.00 $787.80 South Lake Refuse $22.28 $24.40 $48.80 $73.20 $332.38 N/A $664.76 $997.14 Lake County $21.89 $25.11 $50.23 $75.35 $337.36 $506.04 $674.73 $1,012.09 City of Healdsburg $19.67 $26.12 $37.54 $50.99 $420.80 $578.10 $721.30 $921.87 City of Lakeport $17.77 $26.24 N/A $77.18 $359.28 $447.75 N/A N/A City of Cloverdale $20.24 $27.90 $44.06 $57.13 $265.85 $330.35 $390.23 $565.21 City of Willits $16.21 $28.65 $61.77 $77.68 $333.98 $462.05 $579.00 $892.83 Town of Windsor $22.01 $29.26 $45.75 $70.25 $385.03 $549.41 $657.39 $816.84 County of Mendocino Inland WM $26.80 $29.64 $59.41 $89.12 $359.25 $415.03 $491.74 $678.53 County of Mendocino Coastal WM $26.94 $30.09 $60.28 $90.32 $357.41 $434.23 $560.35 N/A City of Santa Rosa $31.24 $35.02 $50.43 $76.38 $464.09 $569.99 $714.56 $971.76 Brooktrails $30.54 $38.04 $58.12 $74.69 $326.42 N/A N/A N/A City of Fort Bragg $24.45 $38.95 $77.91 $116.89 $389.42 $456.98 $712.04 N/A County of Mendocino North SWOW $40.88 $49.93 $68.02 $81.92 $423.86 $542.68 $698.76 $990.84 County of Mendocino South Coast SWOW $41.86 $50.87 $70.80 $85.25 $474.19 $707.75 $1,082.13 $1,408.20 Median (excludes Ukiah) $22.28 $29.26 $54.28 $76.38 $359.25 $462.05 $664.76 $921.87 UWS RATE 2022 vs All Areas 2021
Carts Bins
Attachment 2

Agenda Item No: 12.c.

MEETING DATE/TIME: 1/19/2022
ITEM NO: 2022-1212

AGENDA SUMMARY REPORT
SUBJECT: Introduction of an Ordinance by Title Only, Amending Article 1 of Division 1, Chapter 4 of the Ukiah City Code to Reform the Paths, Open Space, and Golf Commission and the Parks, Recreation and Golf Commission into the Public Spaces Commission.

DEPARTMENT: Community Services PREPARED BY: Neil Davis, Community Services Administrator PRESENTER: Neil Davis, Community Services Director
ATTACHMENTS:

1. Public Spaces Commission Ordinance Attachment 1

2. ASR Community Outreach Plan Draft Attachment 2
Summary: Council will consider introducing an ordinance amending Article 1 of Division 1, Chapter 4 of the Ukiah City Code to reform the Paths, Open Space, and Golf Commission and the Parks, Recreation and Golf Commission into the Public Spaces Commission.

Background: On September 15, 2021, the Ukiah City Council received a “Presentation of Findings to Improve the Efficiency and Productivity of the Paths, Open Space, and Creeks Commission (POSCC) and the Parks, Recreation, and Golf Commission (PRGC); and Seeking Direction from Council Regarding the Reformation of the Commissions as a Single Public Spaces Commission.” Based on this presentation, Council approved the recommended action directing Staff to return at a future meeting with a proposed ordinance for introduction.

Discussion: Following direction from Council, Staff prepared an ordinance amending Article 1 of Division 1, Chapter 4 of the Ukiah City Code to reform the Paths, Open Space, and Golf Commission and the Parks, Recreation and Golf Commission into the Public Spaces Commission (PSC) (Attachment 1).

The intent in the reformation of the POSCC and PRGC into a new Public Spaces Commission is to enable the Commission to foster a culture of informed public input on the use of public spaces and to make recommendations and provide advice to Staff and Council. Towards this purpose, a draft “Public Spaces Commission Community Outreach Plan” for improved processes to solicit public comment has been included in Attachment 2. Should Council adopt this ordinance, Staff will present the attached draft Community Outreach Plan to the new commissioners for their consideration, edits, and adoption. Once adopted by the PSC, the Outreach Plan will be presented for Council's adoption.

Proposed terms of office for PSC Commissioners are three (3) years. Proposed number of Commissioners is seven (7), with no less than four (4) members as City residents and three (3) members residing outside the city limits but within Mendocino County.

All current POSCC and PRGC Commissioners will be invited to join the PSC through the remainder of their term.

Proposed is for the PSC to have three primary functions. The first function will be to solicit, collate, and analyze public input, and provide advice and recommendations to Council based on this input. The second function is to form short-term “working groups” both among Commissioners themselves as well as with members of the public, to pursue areas of interest and to collaborate with and assist Staff. Ideally, all working groups should have a City Council member or member of Staff actively engaged in the working group. The

third function will be an annual update to the Public Spaces Commission Community Outreach Plan (Attachment 2). The annual update to the plan will allow the PSC, in collaboration with Staff and Council, to continually work to improve the community input process.

Staff will track and report on PSC activities. An annual PSC activity report will be presented to Council to include items such as number of meetings held, meeting attendance, e-newsletter totals (number of subscribers, number of email “opens” etc.), number of social media posts (and associated metrics).

Recommended Action: Introduce an ordinance by title only, amending Article 1 of Division 1, Chapter 4 of the Ukiah City Code to reform the Paths, Open Space, and Golf Commission and the Parks, Recreation and Golf Commission into the Public Spaces Commission.

BUDGET AMENDMENT REQUIRED: N/A
CURRENT BUDGET AMOUNT: N/A
PROPOSED BUDGET AMOUNT: N/A
FINANCING SOURCE: N/A
PREVIOUS CONTRACT/PURCHASE ORDER NO.: N/A
COORDINATED WITH: City Manager's Office and City Attorney's Office

Attachment 1
1 ORDINANCE NO.

ORDINANCE OF THE CITY COUNCIL OF THE CITY OF UKIAH
AMENDING ARTICLE 1 AND REPEALING ARTICLE 1B FROM
DIVISION 1, CHAPTER 4 OF THE CITY CODE TO ESTABLISH THE PUBLIC SPACES COMMISSION.

The City Council of the City of Ukiah hereby ordains as follows:

SECTION ONE. FINDINGS

1. On September 15, 2021, the Ukiah City Council received a presentation of findings from staff to improve the efficiency and productivity of the Paths, Open Space and Creeks Commission (POSCC) and the Parks, Recreation, and Golf Commission (PRGC). In this presentation, staff sought direction from Council regarding the recommended reformation of these commissions as a single Public Spaces Commission (“Commission”). Council directed staff to proceed with drafting an Ordinance that would merge the POSCC and PRGC into a single Public Spaces Commission and to consider the functions and authority of the reformed Commission.

2. The intent in the reformation of the POSCC and PRGC into a new Public Spaces Commission is to improve the efficiency and effectiveness of the two groups while continuing to serve the same broad functions regarding policy recommendations for use of public spaces within the City.

3. The Commission will work to foster a culture of informed public input on the wise use of public spaces and to make recommendations and provide advice to Staff and Council based on broad and informed public input.

4. The Commission will draft and annually update a “Public Spaces Commission Community Outreach Plan” for improved processes to solicit public comment. The Plan will be submitted to Council for approval.

5. All current POSCC and PRGC commissioners will be invited to join the Commission through the remainder of their respective terms.

6. Pursuant to the unanimous vote of Council at their November 8, 2021 meeting, this Ordinance will reform the POSCC and PRGC into a combined Public Spaces Commission and will set forth the duties and authority of the reformed Commission.

SECTION TWO.

Article 1 of Division 1, Chapter 4 of the Ukiah City Code is hereby amended to read as follows:

ARTICLE 1. PUBLIC SPACES COMMISSION
§1000 CREATION

Attachment 1
2 There is hereby created a Public Spaces Commission. This advisory body shall report to the City Council.
§1001 MEMBERSHIP; APPOINTMENT
The Commission shall consist of seven (7) at large members who may reside within the City limits or outside the City limits but within the Ukiah Valley; provided, that a majority of the seven (7) Commission members must reside within the City limits.

All members of the Commission shall be appointed by the City Council. §1002 TERM OF OFFICE; VACANCIES
All appointments to this Commission shall be for a term of three (3) years. Reappointments to the Commission shall be pursuant to Article 5 of this chapter. §1003 DUTIES AND POWERS
The Public Spaces Commission shall provide advice and recommendations to Council regarding 1) City-owned properties that are open to the public, such as parks, paths, and public right-of-ways; 2) creeks within the City limits; 3) open spaces within the City limits that are undeveloped and conserved or in consideration of future conservation; 4) and the recreational uses of these spaces. In addition, the Public Spaces Commission shall have the power and duty to:

A. Solicit, collate, and analyze public input on the wise use of public spaces.

B. Provide recommendations and advice to both City staff and the City Council based on said public input.

C. If deemed necessary by the Commission, form working groups in collaboration with City staff to explore and formulate advice or recommendations on specific areas regarding the wise use of public spaces.

D. Commission activities related to solicitation, review, and analysis of public input shall be guided by the Community Outreach Plan. The Commission shall prepare and annually update a Community Outreach Plan to be approved by City Council. The Community Outreach plan will guide the methodology, scheduling, and tracking of the Commission’s community engagement.

E. The Commission shall hold at least six (6) regular meetings per year as scheduled and noticed in compliance with the annually updated Community Outreach Plan. It shall adopt rules for the transaction of business which shall be included in the Community Outreach Plan.

F. The Commission shall keep a record of its transactions, findings, recommendations, and any other action item, which record shall be a public record.

Attachment 1
3 §1004 COMPENSATION
The members of the Commission shall receive no compensation, except such traveling expenses as are authorized by law.
§1005 CHAIRPERSON; OFFICERS
The Commission shall elect a chairperson from among its members for a term of one year and may elect such other officers as it may determine.

SECTION THREE.

Article 1B of Division 1, Chapter 4 of the Ukiah City Code is hereby repealed.

SECTION FOUR.

1. Publication: Within fifteen (15) days after its adoption, this Ordinance shall be published once in a newspaper of general circulation in the City of Ukiah. In lieu of publishing the full text of the Ordinance, the City may publish a summary of the Ordinance once 5 days prior to its adoption and again within fifteen (15) days after its adoption.

3. Effective Date: The ordinance shall become effective thirty (30) days after its adoption.

Introduced by title only on ____________, 2022, by the following roll call vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

Adopted on ___________, 2022, by the following roll call vote:

AYES:

NOES:

ABSENT:

ABSTAIN:
_______________
Jim O. Brown, Mayor
ATTEST:
_______
Kristine Lawler, City Clerk

1 Attachment 2

Public Spaces Commission Community Outreach Plan 11/2021 The Mission of the Public Spaces Commission (PSC) is to foster a culture of informed community participation in the planning and implementation of the wise use of public spaces. The seven-member PSC shall have the power and duty to solicit, collate, and analyze public input on the wise use of public spaces and; provide recommendations and advice to both staff and the City Council based on said input. Additionally, PSC members in collaboration with staff may choose to form “working groups” to explore and formulate advice or recommendations on specific areas regarding the wise use of public spaces.

In support of the PSC mission, City staff will;

1. Convene Biannual Community Input Forums

2. Prepare a Quarterly Public Spaces E-Newsletter

3. Convene four time per year Public Input Forum planning meetings

4. Prepare and distribute a monthly Parks and Recreation Update Video

5. Provide staff support to working groups on mutually agreed upon topics

6. Assist the PSC in an annual update to this plan.

Public Spaces Biannual Community Input Forums
The Public Spaces Biannual Community Input Forums will be held as hybrid in-person and online events. Meetings will be planned to cover two to four prearranged topics with time available for discussion of an unplanned topic at attendee consensus request. The PSC will work with staff to decide upon topics and presenters. City staff will prepare presentations that will include Q&A sessions after the presentations. Forums will be recorded and available on the City You Tube Channel
Prepare a Quarterly Public Spaces E-Newsletter
E-Newsletter will cover the same topics as Community Input Forum to allow for an additional medium for distribution. ENewsletter may contain additional material. E-Newsletter will be distributed to an interested parties list and be available online.

Convene four time per year PSC Public Input Forum Planning and Workgroup meetings These meetings will allow PSC members the opportunity to work with staff to plan the Community Input Forums and to report on PSC working group activities.

Prepare and distribute a monthly Parks and Recreation Update Video The Community Services Supervisor or Designee will record a video presentation with updates on the Parks and Recreation activities. The presentation will be based on the report that has traditionally been provided to the Parks, Rec, and Golf Commission (PRGC) but it will be made available to a much wider audience through You Tube, social, media, and e-newsletter.

Working Groups
PSC members will be encouraged to form Working Groups both among themselves as well as with members of the public to pursue areas of interest and to the benefit of effective City management. All working groups should have a City Council member of staff “sponsor” to ensure a collaborative approach.

Agenda Item No: 12.d.

MEETING DATE/TIME: 1/19/2022
ITEM NO: 2022-1219

AGENDA SUMMARY REPORT
SUBJECT: Approve Contract Amendment Eight with Carollo Engineers for the Design Efforts of the Recycled Water Phase 4 Project in the amount of $4,600,773 and approval of corresponding budget amendment.

DEPARTMENT: Public Works PREPARED BY: Jason Benson, Senior Civil Engineer PRESENTER:

Tim Eriksen, Director of Public Works/City
Engineer
ATTACHMENTS:

1. Recycled Water Ph4 CO2 WWTP_12JAN2022
Summary: The City Council will consider giving approval of a contract amendment with Carollo Engineers for the design efforts of the Recycled Water Phase 4 project in the amount of $4,600,773 and approval of corresponding budget amendment.

Background: The City Council approved contract amendments and the budget required for Carollo Engineers to continue with Recycled Water Phase 4 Design on November 7, 2018. The items issued in the Scope of Work to perform are Tasks 1-9: Project Management, Funding, Preliminary Design, Permitting and Easement, Field Investigation Services and Hydraulics, Bid Support, Engineering Services during Construction (ESDC), and Construction Management. This work is to be completed with the issued budget of $2,627,484.75.

Two amendments, numbers 5 and 6, have been issued to the Carollo Contract 1314-231 for Phase 4 design work. Amendment 5 for Tasks 1-3: Project Management, Funding, Preliminary Design; and, Amendment 6 for Task 5: Field Investigation Services and Hydraulics. These amendments were approved 1/16/2019 and 5/3/2019, respectively. The four prior amendments approved for this contract work were for: additional geotechnical and environmental work, Recycled Water Phase 3 design, Chlorine Contact Basin (CCB) design, and additional CCB and Recycled Water Phase 3 design.

Amendment 7 was issued to the Carollo Contract 1314-231 for Phase 4 design work under Tasks 1-6: Project Management, Funding, Preliminary Design, Permitting and Easement, Field Investigation Services and Hydraulics, and Final Design. Amendment 7 was approved by City Council on 9/16/2020.

The 30% Design drawings and the Preliminary Design Report (PDR) were completed and submitted to the City in August 2019. This information was used by Carollo to submit an application for the State Revolving Fund (SRF) funding and coordination with the State.

The 60% Design drawings were completed and submitted to the City, and the City reviewed and provided comment in September 2021. The 90% Design drawings were completed and submitted to the City, and the City reviewed and provided comment in January 2022. During project design meetings between City Staff and Carollo Engineers, it was tentatively agreed to have the design complete, shovel ready, and ready for the bidding process, pending project funding sources, in Spring 2022.

Discussion: City Staff met with Carollo Engineers and California State Water Resources Control Board (CSWRCB) Staff in early November 2021. The topic of this meeting was to discuss the potential for a Prop. 68

and Infrastructure Grant to fully pay for the overall construction of the project, and would equate to approximately $25M. This would include design cost to date expended by the City, and may include City Staff cost during construction. The City directed Carollo Engineers to provide a change order for all scope changes and future engineering efforts (Attachment 1), per CSWRCB discussion. Carollo Engineers has worked diligently to provide the scope changes. The City is only engaging in the changes that will be covered by the new grant.

On the water side of the Wastewater Treatment Plan (WWTP) process, recycled water is the final product from the Advanced Waste Treatment (AWT) and the Chlorine Contact Basin (CCB). Once treated water leaves the CCB, water is discharged to the Recycled Water ponds south of the WWTP. In order to have sufficient recycled water supply for all customers, an additional storage facility for secondary water is needed at the WWTP. The current process at the WWTP requires a lag time between process equipment to operate efficiently, and will remove using the percolation ponds for temporary storage. This will eliminate water loss to the environment and remove extra work time and cost by the WWTP crew to operate and maintain equipment.

A new pond and pump station will provide storage of the secondary water before entering the process into the AWTs.

The overall recycled water pipeline layout, the associated tank and pump station located at the Water Treatment Plant (WTP), and the appurtenances of it does not require design revisions since the last submittal of deliverables (December 2021).

Carollo Engineers has prepared a revised Scope of Work and the necessary actions to perform Task 1-9. This includes a cost Change Order for the additional work for Task 1-6 and to include Task 7-9. The added cost is for a revision to the project design and the documents associated with this process (Task 1-6), and will incorporate the design changes for a new pond and pump station at the WWTP. Other added cost is for Task 7-9: Bid Support, Engineering Services during Construction (ESDC), Construction Management. Task 7-9 will be initiated through Task Orders to Carollo and approved for cost expenditure only when the project construction phases begin. Carollo Engineers has prepared a contract change order for a revised budget for the remaining and modified Tasks for the revised total contract budget of $6,471,103 (Attachment 1) for Phase

4. Carollo Engineers has prepared a contract change order for a revised budget for the remaining and modified Tasks to be completed at $4,600,773 (Attachment 1). This will increase the total contract value for all Recycled Water project work performed by Carollo Engineers (Phases 1-4 and CCB) to $10,644,367.

City Staff has discussed the grant options and procedures for applications with CSWRCB and Carollo Engineers. In order to get through the grant application and finalization process, Carollo Engineers will have to perform administrative and engineering design work before the CSWRCB provides the City with a definative answer of the grant award to the City for construction and design cost of Phase 4. This will include geotechnical work, materials testing, site survey, production of design drawings, Engineer's Estimate for construction, and the preliminary report of findings. The estimated cost to the City for Carollo to get through the grant process is approximately fifty percent of the proposed amount for Task 1-6 in the amount of $864,433. This will include preliminary design of the WWTP pond and pump station upgrades, and if the grant is not approved, this design will already be in place for needed operational and critical plant updates. If the grant is approved, these costs will likely be eligible for reimbursement. Past and future amendments provide a Task Order to Carollo Engineers which only allows them to proceed with the scope of work when authorized by the City. To date, through Amendment 7 (dated September 4, 2020), Carollo Engineers is completing work described under Task 1-6. If the grant is not awarded or the City does not wish to continue work with Carollo Engineers for Task 7-9, Amendments for this work will not be executed by the City.

Recommended Action: Approve contract amendment eight with Carollo Engineers for the design efforts of the Recycled Water Phase 4 project in the amount of $4,600,773 and approval of corresponding budget amendment. .

BUDGET AMENDMENT REQUIRED: Yes
CURRENT BUDGET AMOUNT: 83027330.80230.18052: $0
PROPOSED BUDGET AMOUNT: 83027330.80230.18052: $4,600,773 FINANCING SOURCE: Water Fund - 82000000.30007
PREVIOUS CONTRACT/PURCHASE ORDER NO.: Carollo Engineers - COU No. 1314-231 COORDINATED WITH: Tim Eriksen, Director of Public Works/City Engineer

1 CITY OF UKIAH
RECYCLED WATER PROJECT – PHASE 4 DESIGN, ESDC, and CM
CHANGE ORDER 2
January 12, 2022
After the Phase-4 30% design package was submitted, modifications to the alignment and design elements were recommended by the project team. A Change Order was submitted and approved to amend the original scope of work to include the new alignment and remove the design elements at the Wastewater Treatment Plant (WWTP). Funds for the additional design work were reallocated from Construction Management (CM) services.

Recent discussions with the state have indicated that Ukiah will likely receive full grant funding for the Phase-4 project. The City has requested that Carollo provide a design to turn the existing sludge pond at the WWTP into additional storage to be used for reclaimed water delivery, include the WWTP upgrades that were identified in the original Preliminary Design Report, and provide an updated budget for ESDC and CM.

New project elements are as followed:
• Define the full amount demo required for the existing sludge pond and any ground contamination.
• AWT Storage Ponds (ASP) will be upgraded by reconditioning the existing sludge lagoons, including sludge removal and installation of a liner, new drainage piping, and drain pump station. The existing digester overflow line that drains to the sludge lagoon will be relocated.
• A new pump station to convey flows from the pond to final treatment. • New Geotech and Survey to support the pond and pump station. • Upgrade existing package clarifier/filter Advanced Wastewater Treatment (AWT) units per the Westech budgetary proposal dated July 2019:
- Install filter in-bed air scour.
- Replace filter media.
- Replace filter gravel support.
- Retrofit waste gate assembly.
- Replace analog backwash control level switch instrumentation with digital instrumentation.
- Install new air scour blower pressure gauge and switch instrumentation. - Inspect steel clarifier/filter steel tank structure, repair and recoat. Modify structure to provide seismic anchorage
• Replace adsorption clarifier media of the package clarifier/filter AWT units. • Replace the two existing backwash air blowers of the clarifier/filter AWT units and install a third new blower to provide air for the new filter in-bed air scour system. • Replace the clarifier/filter AWT units effluent valves and install new filter air scour valves ATTACHMENT #1

2 on each unit.
• Replace pneumatic valve operators on the package clarifier/filter AWT units with electric operators to reduce maintenance and improve reliability. • Replace AWT existing PLCs and program to incorporate upgrades outlined above. • Replace one primary coagulant (ferric chloride) feed pump with smaller capacity pump to provide operational flexibility during times of low recycled water demand and reduce the production of excess chemical sludge in AWT system clarifiers. • Install rapid mix pump and flash mix assembly in the contact clarifier influent pipe to improve ferric chloride coagulant mixing.
• Replace existing chlorine residual analyzer 3 (at the backwash pumping station) and chlorine residual analyzer 4 (at the dechlorination structure) with probe-type analyzers. • Install motor-operated valve and replacement valve on existing 24-inch FE/RW diversion line west of the dechlorination structure and a motor-operated valve on 24-inch river discharge line. Revise AWT CCB discharge flow meter piping to maintain full pipe flow in the flow meter.
• Upgrade the Carousel Pump Station including adding a new pump to fill the AWT Storage Pond (ASP) and replacing the electrical equipment. Existing electrical service will be replaced with a new feeder from either the Generator or DAF building. • Structure 89 will be upgraded with a level sensor to control the ASP drain pump station. • Add additional time for Task 1 Project Management for the time extension and additional effort for the design change analysis.
• Reestablish Carollo’s effort for construction management and adjust rates for a 2023 construction start.
• Continue to support the City to apply for Grant Funds through the SRF application process.

Table 1 provides a budget breakdown by task showing the revised estimated budgets. A detailed estimate for work to be authorized is provided as Exhibit A.

3 Table 1: Budget Adjustments
Task Existing Contract Scope Delta New Total

1.0 Project
Management
$227,526 $133,021 $360,547

2.0 SRF Funding
Applications and
Coordination
$78,429 $38,295 $116,724

3.0 Preliminary
Design
$303,298 $99,320 $402,618

4.0 Permitting &
Easement
$74,726 $16,296 $91,022

5.0 Field
Investigative
Services &
Hydraulics
$520,274 $213,864 $734,138

6.0 Final Design $666,077 $1,227,440 $1,893,517

7.0 Bid Support $42,019 $32,486 $74,505

8.0 ESDC $261,895 $347,412 $609,307

9.0 CM $453,240 $1,735,485 $2,188,725
Total $2,627,484.75 $3,843,618 $6,471,102.75
Assumptions:
• Survey and geotech will begin upon notice to proceed (NTP). Survey, Geotech, and materials testing is provided as an allowance.
• The pond will be stabilized with soil mixing.
• The preliminary design report will be modified to show the new proposed work at the WWTP. The preliminary design will include one site drawing showing the footprint of the new pond.
• The new design at the WWTP will be a standalone drawing and spec package.

However, Phase 4 will be bid as a single contract for construction. • It is assumed record drawings are available for the WWTP and AWT for reference and use during design.

4 • The 50% design submittal will include a preliminary site plan for the WWTP and AWT improvements, including initial civil, demolition, structural, mechanical, electrical layouts, and P&IDs, a list of technical specifications, and a 50% construction estimate. • Carollo will develop 50%, 90% and 100% design packages. • It is anticipated that the WWTP design work will take approximately 130 drawings. • Design for the WWTP improvements is anticipated to take approximately 12 months.

The revised Project Management Task 1 will take the project through this design schedule. After design project management tasks will be handled under the CM budget. • Carollo has provided a budgetary estimate to assist in providing information necessary for permit applications.
• Carollo has provided a budgetary estimate for ESDC and CM support. The City and Carollo will modify the fee/scope for construction and bid support tasks when a final construction schedule has been identified.
• CM budget is based upon a 24-month effort, rates shown are inclusive of anticipated travel and per diem, and construction office trailer to be provided by others. • Rates will increase yearly beginning January 1, 2023 for Tasks 1 through 8 and January 1, 2024 for Task 9.

Exhibit A - (January 12 2022)
City of Ukiah
Recycled Water Project - Phase 4
CO 2 For Approval
PIC/PM PE Proc Struct Elec Permit Eng CAD QC/QC DP PIC CM CM Inspector EPIC Inspector Field Clerk Total Labor Munselle Crawford Alpine Summit JDH PECE ODC Total Task Task Description $311 $260 $285 $275 $275 $275 $190 $200 $311 $125 $255 $235 $205 $220 $125 Hours Cost Survey Geotech Cost Estimate CP $13.00 ODC Trips Amount Total Cost

1.0 Project Management and Meetings (15 months)

1.1 Project Management and Administration 98 45 0 0 0 0 0 0 0 30 0 0 0 0 0 173 $45,928 $0 $2,249 0 $0 $2,249 $48,177

1.2 Meetings 54 92 20 20 20 10 46 20 20 0 0 0 0 0 0 302 $79,124 $0 $3,926 12 $1,794 $5,720 $84,844 Task 1.0 Totals = 152 137 20 20 20 10 46 20 20 30 0 0 0 0 0 475 $125,052 Task 1.0 Totals = $133,021

2.0 SRF Funding Applications and Coordination

2.2 Grant Funding Coordiantion 90 0 0 0 0 0 45 0 0 0 0 0 0 0 0 135 $36,540 $0 $1,755 0 $0 $1,755 $38,295 Task 2.0 Totals = 90 0 0 0 0 0 45 0 0 0 0 0 0 0 0 135 $36,540 Task 2.0 Totals = $38,295

3.0 Preliminary Design

3.7 Develop Draft/Final PDR 16 20 0 0 0 0 40 0 8 8 0 0 0 0 0 92 $21,264 $0 $1,196 0 $0 $1,196 $22,460

3.9 30% Design (WWTP Improvements Layout Dwg) 20 20 0 8 20 0 40 40 0 0 0 0 0 0 0 148 $34,720 $0 $1,924 1 $150 $2,074 $36,794

3.10 Basis of Design (WWTP Pond Storage) 16 30 0 0 36 0 60 0 8 8 0 0 0 0 0 158 $37,564 $0 $2,054 3 $449 $2,503 $40,067 Task 3.0 Totals = 52 70 0 8 56 0 140 40 16 16 0 0 0 0 0 398 $93,548 Task 3.0 Totals = $99,320

4.0 Permitting & Easement

4.2 Prepare Permit Applications 8 8 0 0 0 40 0 0 0 0 0 0 0 0 0 56 $15,568 $0 $728 0 $0 $728 $16,296 Task 4.0 Totals = 8 8 0 0 0 40 0 0 0 0 0 0 0 0 0 56 $15,568 Task 4.0 Totals = $16,296

5.0 Field Investigative Services & Hydraulics

5.1 Topographic Survey 6 12 0 0 0 0 0 0 2 0 0 0 0 0 0 20 $5,608 $90,000 $99,000 $260 0 $0 $99,260 $104,868

5.2 Geotechnical Investigations 2 8 0 4 0 0 0 0 2 0 0 0 0 0 0 16 $4,424 $80,500 $88,550 $208 0 $0 $88,758 $93,182

5.3 Potholing 8 4 0 0 0 0 8 0 1 0 0 0 0 0 0 21 $5,359 $0 $273 1 $150 $423 $5,782

5.4 Surge Analysis 2 32 0 0 0 0 0 0 2 0 0 0 0 0 0 36 $9,564 $0 $468 0 $0 $468 $10,032 Task 5.0 Totals = 18 56 0 4 0 0 8 0 7 0 0 0 0 0 0 93 $24,955 Task 5.0 Totals = $213,864

6.0 Final Design

6.5 50%, 90%, & 100% WWTP Improvements (Submittal Review Meetings) 16 32 16 20 85 0 8 8 0 0 0 0 0 0 0 185 $49,851 $60,000 $66,000 $2,405 $500 6 $897 $69,802 $119,653

6.6 50%, 90%, & 100% WWTP Improvements (Design) 160 834 506 200 428 0 465 1,530 120 154 0 0 0 0 0 4,397 $1,034,430 $57,161 $3,000 6 $897 $61,058 $1,095,488 Task 6.0 Totals = 176 866 522 220 513 0 473 1,538 120 154 0 0 0 0 0 4,582 $1,084,281 Task 6.0 Totals = $1,227,440

7.0 Bid Support

7.1 Attend Pre Bid Meeting 8 8 0 0 0 0 0 0 0 0 0 8 0 0 0 24 $6,448 $0 $281 1 $150 $430 $6,878

7.2 RFI Review & Response & Addenda 4 30 8 8 8 0 8 36 0 2 0 0 0 0 0 104 $24,818 $0 $1,221 0 $0 $1,221 $26,040

7.3 Conformed Documentation 4 16 0 16 16 0 36 80 2 8 0 0 0 0 0 178 $38,511 $0 $2,077 $1,000 0 $0 $3,077 $41,587 Task 7.0 Totals = 16 54 8 24 24 0 44 116 2 10 0 8 0 0 0 306 $69,777 Task 7.0 Totals = $74,505

8.0 Engineering Services During Construction

8.1 Construction Contract Award 4 8 0 0 0 0 0 0 0 0 0 0 0 0 0 12 $3,324 $0 $140 0 $0 $140 $3,464

8.2 Pre-Construction Conference 8 8 0 0 8 0 8 0 0 0 0 0 0 0 0 32 $8,288 $0 $374 0 $0 $374 $8,662

8.3 Engineer's Site Observation 48 96 40 8 24 0 48 0 0 0 0 0 0 0 0 264 $69,208 $0 $3,089 18 $2,691 $5,780 $74,988

8.4 Submittals Review 60 300 120 160 160 0 0 0 0 0 0 0 0 0 0 800 $218,860 $0 $9,360 0 $0 $9,360 $228,220

8.5 Responses to Contractor's RFIs 5 60 20 20 20 0 0 10 0 0 0 0 0 0 0 135 $35,855 $0 $1,580 0 $0 $1,580 $37,435

8.6 Review and Preparation of Design Clarifications 2 16 8 8 8 8 0 32 0 0 0 0 0 0 0 82 $20,062 $0 $959 0 $0 $959 $21,021

8.7 Record Drawings 16 24 20 0 0 0 100 600 16 40 0 0 0 0 0 816 $165,892 $0 $9,547 0 $0 $9,547 $175,439

8.8 Substantial and Final Completion Assistance 2 32 0 0 0 0 16 0 0 0 0 0 0 0 0 50 $11,982 $0 $585 1 $150 $735 $12,717

8.9 Training and Commissioning 8 32 0 0 32 0 0 0 0 0 0 0 0 0 0 72 $19,608 $0 $842 2 $299 $1,141 $20,749

8.10 Operations and Maintenance Manuals 8 16 40 0 16 0 16 0 0 0 0 0 0 0 0 96 $25,488 $0 $1,123 0 $0 $1,123 $26,611 Task 8.0 Totals = 161 592 248 196 268 8 188 642 16 40 0 0 0 0 0 2,359 $578,567 Task 8.0 Totals = $609,307

9.0 Construction Management

9.1 Preconstruction Services 0 0 0 0 0 0 0 0 0 0 5 40 0 0 0 45 $10,675 $0 $527 $25,000 0 $0 $25,527 $36,202

9.2 Services During Construction 0 0 0 0 0 0 0 0 0 0 204 4,080 4,080 612 0 8,976 $1,981,860 $0 $105,019 $7,806 0 $0 $112,825 $2,094,685

9.3 Material Testing 0 0 0 0 0 0 0 0 0 0 0 0 40 0 0 40 $8,200 $30,710 $33,781 $468 0 $0 $34,249 $42,449

9.4 Startup and Testing 0 0 0 0 0 0 0 0 0 0 16 16 16 16 0 64 $14,640 $0 $749 0 $0 $749 $15,389 Task 9.0 Totals = 0 0 0 0 0 0 0 0 0 0 225 4,136 4,136 628 0 9,125 $2,015,375 Task 9.0 Totals = $2,188,725 Project Totals = 673 1,783 798 472 881 58 944 2,356 181 250 225 4,144 4,136 628 0 17,529 $4,043,663 $90,000 $111,210 $60,000 $10,000 $298,331 $212,549 $38,306 53 $7,924 $557,109 $4,600,772.23 Subconsultants
Fee
Mileage
Other Direct Costs (ODC)
Carollo Labor
Includes 10%
Markup
Subconsultant

Agenda Item No: 12.e.

MEETING DATE/TIME: 1/19/2022
ITEM NO: 2022-1221

AGENDA SUMMARY REPORT
SUBJECT: Consider Adoption of Resolution Adopting a 2022 Advocacy Platform to Serve as Guidelines for Local, State, and Federal Legislative Matters.

DEPARTMENT: City Manager /
Admin PREPARED BY: Shannon Riley, Deputy City Manager
PRESENTER: Shannon Riley, Deputy City Manager
ATTACHMENTS:

1. Advocacy Platform and Resolution_2022_highlighted

2. Advocacy Platform and Resolution_2022_clean

3. 2022 League of CA Cities Priorities
Summary: Council will consider adoption of a Resolution adopting a 2022 Advocacy Platform to provide guidance regarding local, state and federal legislative and judicial matters, and allow the City to weigh in on such matters in a timely fashion. An advocacy platform enables the Mayor and/or City Manager, or their designee, to submit letters or other filings on behalf of the City if the proposed matter is within the City’s adopted advocacy platform guidelines. Additionally, platform guidelines enable the City to actively participate in the regional, state and federal legislative processes on behalf of the City of Ukiah.

Background: The ability of the City to serve the residents and provide for a thriving and sustainable community requires support from all levels of government. Local government is uniquely and best positioned to support, serve, and respond to community and individual needs. However, with local, state and federal legislative policy and judicial matters, action is often needed to support local government in having this impact.

These legislative policies and legal actions can affect the City's ability to deliver services, shape what services are delivered, impact the resources available for services, and remove obstacles to delivering services. These policies sometimes require immediate attention.

The Ukiah City Council has annually adopted a Platform and a corresponding resolution, most recently in February 2021. A number of new items, which reflect recent Council direction or current City activities, have been added to the document. New items are shown in yellow highlight on Attachment 1, and a clean version of the proposed 2022 Advocacy Resolution and Platform is provided as Attachment 2.

Discussion: In order to fulfill the City’s commitment to the community, positive local, state and federal action-- including the allocation of resources--should be sought.

The Advocacy Platform is also consistent with the 2022 goals and priorities of the League of California Cities ("the League"), provided as Attachment 3.

The proposed 2022 Advocacy Platform from the City states it does not take positions on matters outside the scope and purpose of municipal government. Occasionally, the City is asked to take positions that do not materially affect the scope and purpose of our municipal government; these tend to be quality of life or social issues; or federal government matters like foreign policy.

The Platform would not preclude the Mayor or Councilmembers from placing an item on the agenda for consideration. However, it would provide guidance to others about positions typically taken by the City

Council.

To this end, if the City should adopt/update the proposed 2022 Advocacy Platform, it would provide a guide for the City’s legislative advocates and highlight key issues important to the local community. The Platform provides 14 over-arching guiding principles intended for specific legislative and legal action and supports existing City Council-established goals and policies. The priorities outlined streamline the legislative approval process by providing clear direction on pertinent issues for our community. It is by no means allencompassing.

As previously stated, the Platform is reviewed by Council on an annual basis in coordination with the State’s legislative calendar, and will continue to be listed on the tracking calendar for Council review in January of each year.

Staff recommends the adoption of the proposed Resolution that includes the 2022 Advocacy Platform providing overall guidance that allows the Mayor, and/or City Manager, or their designee, to send/file support or opposition to the League and other agencies/organizations to protect or advocate for our community.

Recommended Action: Adopt resolution adopting a 2022 Advocacy Platform to serve as guidelines for local, state, and federal legislative, administrative, regulatory and court matters.

BUDGET AMENDMENT REQUIRED: N/A
CURRENT BUDGET AMOUNT: N/A
PROPOSED BUDGET AMOUNT: N/A
FINANCING SOURCE: N/A
PREVIOUS CONTRACT/PURCHASE ORDER NO.: N/A
COORDINATED WITH: Sage Sangiacomo, City Manager

RESOLUTION NO. 2022-

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF UKIAH APPROVING AND ADOPTING A 2022 ADVOCACY PLATFORM
WHEREAS; an advocacy platform is a tool that the City Council and staff can utilize to support the goals and objectives of the City; and
WHEREAS, the California State Legislature alone considers thousands of bills during each twoyear legislative session, state and federal administrative agencies establish policies and engage in rule-making and many precedent setting decision are heard by the California and federal courts of appeal and the California and United States Supreme Court; and any number of these bills, administrative actions and regulations and court cases can affect cities—through changes in funding, employment law, or water regulation as examples; and WHEREAS, development of an Advocacy Platform provides the opportunity to identify issues and priorities that may be addressed through legislative and administrative advocacy and amicus briefs to California and federal appellate courts; and WHEREAS, the City desires to be proactive and involved in the governmental, administrative and judicial decision-making process directly affecting the City of Ukiah and the League of California Cities; and
WHEREAS, the platform will also be used when applicable on other local, regional, state, and federal matters not evaluated by the League; and
WHEREAS, adoption of a 2022 Advocacy Platform enables the City Council and staff to react quickly to most legislative or administrative issues or the filing of amicus briefs as they arise; and
WHEREAS, the 2022 Advocacy Platform can be provided to State and Federal representatives so they are made aware of the issues that are important to Ukiah; and WHEREAS, the City Council wishes to adopt the 2022 Advocacy Platform which provides overall guidance that allows the City Manager and the Mayor, or their designee, to send letters of support or opposition to the League, the local, state and federal legislatures and administrative agencies and to participate in amicus briefs to the state and federal appellate courts in certain instances.

NOW, THEREFORE BE IT RESOLVED, that the City Council of the City of Ukiah hereby adopts a “2022 Advocacy Platform,” attached as “Exhibit A” to this Resolution. Further, any activity taken under the legislative platform will be reported to the City Council, and all letters of support/opposition will be documented and forwarded to the City Council and included within the “Petitions and Communications” section of the subsequent council meeting following issuance for public review.

Attachment 1

DULY AND REGULARLY ADOPTED this 19th day of January 2022.

AYES:

NOES:

ABSTAIN:

ABSENT:

CITY OF UKIAH
Jim O. Brown, Mayor
ATTEST:

Kristine Lawler, City Clerk

1 2022 City of Ukiah Advocacy Platform

Exhibit A
2022 Advocacy Platform

PRIORITIES
The City of Ukiah takes the following positions and the Mayor and the City Manager may send corresponding letters of opposition or support without further City Council action and, whenever filing deadlines preclude prior City Council action, may authorize naming the City as a party to an amicus brief to be filed in state or federal court, provided the City incurs no cost to join the amicus brief.

A. Finance
Protect Local Revenue Sources The City opposes attempts to decrease, restrict or eliminate city revenue sources and opposes any efforts at the local, state or federal level to retain additional revenues currently dedicated to local government for state purposes.

Municipal Bond Tax Oppose any effort to eliminate, or cap, the tax-exempt status of municipal bonds, one of the few tools left for local governments to finance large capital projects.

Replace Lost Redevelopment Funding Seek, promote, and implement any new or alternative approaches that may replace redevelopment funding mechanisms that deliver positive benefits to Ukiah.

Unfunded Mandates Oppose measures that would impose State and Federal mandated costs for which there is no guarantee of local reimbursement or offsetting benefits (i.e., unfunded mandates).

Control Workers’ Compensation and Public Retirement Costs Support legislation and policy that control escalating workers’ compensation and public retirement system costs to public agencies and taxpayers.

B. Utilities
Local Utility Services The City opposes any regulations or legislative actions or court decision that would eliminate or limit the City’s ability to provide utility services within the incorporated jurisdiction.

Energy Value The City supports any legislative or regulatory action that increases the energy value for the electric customer.

Cap and Trade Program The City supports the use of California Air Resources Board’s (CARB) Cap and Trade program allowances and energy resources that are clean, renewable and cost effective.

Wireless and Telecommunication Facilities Oppose any federal or state legislation or regulatory policy that would further erode the ability of local governments to regulate wireless and other telecommunication facilities.

Local Water Use Control Support efforts to maintain and strengthen local control of water use and

2022 City of Ukiah Advocacy Platform
encourage water recycling and the many benefits of sustainability to Ukiah’s water supply, conserving the vital resource of potable water, and protecting our diverse water portfolio.

C. Local Control
Sustainable, Reliable Funding The City supports local, state and federal budget plans that provide sustainable, reliable funding for priority local government programs.

Local Control and Streamlining Regulations The City values its ability and authority to exercise local control, enable excellent public services and protect and enhance the quality of life for Ukiah residents and businesses. The City supports efforts to streamline regulations that simplify the job of running the City and opposes efforts that erode the City’s authority to control its own affairs.

Housing and Homelessness The City supports legislation that provides Cities additional funding and tools and preserves local authority to address housing production, affordability, and homelessness challenges.

D. Transportation and Streets
`
Transportation Infrastructure The City supports increases in transportation funding for local street and road improvements to promote investing in the maintenance and rehabilitation of aging infrastructure.

Alternative Funding Solutions Support legislation that reduces local reliance on local gas tax revenues for roads and streets improvements and proposes new alternative funding solutions with longer-term sustainability
E. Economic Development
Economic Development Opportunities The City embraces efforts to obtain funding for economic development and environmental initiatives, including planning and implementation of regional transportation and traffic congestion relief projects, and the creation of affordable housing. The City also supports legislation that provides incentives for job creation and retention, including legislation that increases funding and allowable uses for the Community Development Block Grant program.

F. Environmental
Clean Environment The City supports policy that advocates for a clean environment and policy to improve environmental standards and promote sustainable energy policies.

G. Public Safety
Public Safety Resources The City supports legislation and policiesthat enable local officials to access resourcesto provide quality police, fire, emergency management, emergency medical services, youth violence prevention initiatives, and to engage the community in its own safety.

Street Outreach Teams Support new funding from the county, state, and federal government for

2022 City of Ukiah Advocacy Platform
expanded Street Outreach Teams in collaboration with law enforcement, first responders, and the County’s health and mental health departments for those affected by homelessness and mental health issues.

Funding to Remove and Clean Homeless Encampments Support new funding from county, state, and federal sources for the legal removal and storage of homeless belongings and cleanup of areas impacted by illegal camping, including the abatement of abandoned vehicles.

Supportive Programs and Solutions Support legislation that assists in preventing and reducing crime, such as intervention and prevention programs, mental health initiatives, enhanced protective equipment, and solutions for at-risk individuals.

Support De-escalation Training Support police reform legislation that provides de-escalation training and the funding for such training, and that reduces unnecessary and excessive use of force.

Graffiti Abatement Support legislation that would strengthen state graffiti law and provide local government revenue and resources for graffiti abatement.

Speed Limits Support legislation that would allow local jurisdictions to set speed limits based upon safety findings and/or provide provisions for cost recovery of traffic enforcement.

H. Parks, Open Space, and Community
Sustainable Quality of Life The City values a sustainable quality of life and supports parks and open space, recreation facilities, environmental and climate protection, resource conservation, libraries, arts and culture and legislation and policies that emphasize sustainable development.

Park Infrastructure Support legislation that provides funding for rehabilitation, development, and capital improvements of local parks, open space, and community facilities.

Public Art Support legislation that provides funding to support public art, both performing and visual.

Funding for Youth and Seniors Support legislation that provides local funding for youth and senior recreational and enrichment programming.

I. Emergency Management
Disaster Management The City supports policy that helps improve disaster preparedness, response, recovery, and climate resiliency.

Funding for Emergency Management Support legislation, strategies, and initiatives that provide increased local, state, and federal funding for emergency and disaster preparedness, planning, response, and recovery.

2022 City of Ukiah Advocacy Platform
J. Public Workforce
Sustainable Pension and Retirement Health Benefits The City supports policy that promotes the sustainability of public pension and retirement health benefits.

Competitive and Valuable Employment Advocate for legislation that supports the City’s ability to provide competitive and valuable employment opportunities.

K. Planning and Land Use
Projects in the Sphere of Influence Oppose project entitlements in areas outside the City limits, but within the City’s General Plan proposed sphere of influence that do not conform to current City standards and/or standards within the Ukiah Valley Area Plan.

Changes of Organization Oppose requests for changes of organization (primarily, annexation) from other entities and agencies if those requests are done without prior collaboration with the City and are proposed within the City’s Sphere of Influence.

Regional Planning Support regional planning initiatives, especially those that may increase the supply of housing and employment opportunities for residents.

Long-Term Planning Support legislation and funding initiatives for long-term planning efforts related to affordable housing, economic development, and climate change adaptation and resiliency.

L. Diversity, Equity and Inclusion
Equitable Access Support legislation and funding that helps the City of Ukiah provide residents with equitable access to City employment, programs and services.

Eliminating Barriers Support legislation and funding that will allow the City and its community partners to provide all residents with the tools necessary to grow and thrive.

Community Engagement Support legislation and funding for the City and its community partners to proactively engage with residents on issues of prejudice, discrimination, and social justice to promote education, understanding, expanded opportunity, value, and acceptance of the diverse groups within our community, creating an environment where all feel welcome and safe in Ukiah.

RESOLUTION NO. 2022-

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF UKIAH APPROVING AND ADOPTING A 2022 ADVOCACY PLATFORM
WHEREAS; an advocacy platform is a tool that the City Council and staff can utilize to support the goals and objectives of the City; and
WHEREAS, the California State Legislature alone considers thousands of bills during each twoyear legislative session, state and federal administrative agencies establish policies and engage in rule-making and many precedent setting decision are heard by the California and federal courts of appeal and the California and United States Supreme Court; and any number of these bills, administrative actions and regulations and court cases can affect cities—through changes in funding, employment law, or water regulation as examples; and WHEREAS, development of an Advocacy Platform provides the opportunity to identify issues and priorities that may be addressed through legislative and administrative advocacy and amicus briefs to California and federal appellate courts; and WHEREAS, the City desires to be proactive and involved in the governmental, administrative and judicial decision-making process directly affecting the City of Ukiah and the League of California Cities; and
WHEREAS, the platform will also be used when applicable on other local, regional, state, and federal matters not evaluated by the League; and
WHEREAS, adoption of a 2022 Advocacy Platform enables the City Council and staff to react quickly to most legislative or administrative issues or the filing of amicus briefs as they arise; and
WHEREAS, the 2022 Advocacy Platform can be provided to State and Federal representatives so they are made aware of the issues that are important to Ukiah; and WHEREAS, the City Council wishes to adopt the 2022 Advocacy Platform which provides overall guidance that allows the City Manager and the Mayor, or their designee, to send letters of support or opposition to the League, the local, state and federal legislatures and administrative agencies and to participate in amicus briefs to the state and federal appellate courts in certain instances.

NOW, THEREFORE BE IT RESOLVED, that the City Council of the City of Ukiah hereby adopts a “2022 Advocacy Platform,” attached as “Exhibit A” to this Resolution. Further, any activity taken under the legislative platform will be reported to the City Council, and all letters of support/opposition will be documented and forwarded to the City Council and included within the “Petitions and Communications” section of the subsequent council meeting following issuance for public review.

Attachment 2

DULY AND REGULARLY ADOPTED this 19th day of January 2022.

AYES:

NOES:

ABSTAIN:

ABSENT:

CITY OF UKIAH
Jim O. Brown, Mayor
ATTEST:

Kristine Lawler, City Clerk

1 2022 City of Ukiah Advocacy Platform

Exhibit A
2022 Advocacy Platform

PRIORITIES
The City of Ukiah takes the following positions and the Mayor and the City Manager may send corresponding letters of opposition or support without further City Council action and, whenever filing deadlines preclude prior City Council action, may authorize naming the City as a party to an amicus brief to be filed in state or federal court, provided the City incurs no cost to join the amicus brief.

A. Finance
Protect Local Revenue Sources The City opposes attempts to decrease, restrict or eliminate city revenue sources and opposes any efforts at the local, state or federal level to retain additional revenues currently dedicated to local government for state purposes.

Municipal Bond Tax Oppose any effort to eliminate, or cap, the tax-exempt status of municipal bonds, one of the few tools left for local governments to finance large capital projects.

Replace Lost Redevelopment Funding Seek, promote, and implement any new or alternative approaches that may replace redevelopment funding mechanisms that deliver positive benefits to Ukiah.

Unfunded Mandates Oppose measures that would impose State and Federal mandated costs for which there is no guarantee of local reimbursement or offsetting benefits (i.e., unfunded mandates).

Control Workers’ Compensation and Public Retirement Costs Support legislation and policy that control escalating workers’ compensation and public retirement system costs to public agencies and taxpayers.

B. Utilities
Local Utility Services The City opposes any regulations or legislative actions or court decision that would eliminate or limit the City’s ability to provide utility services within the incorporated jurisdiction.

Energy Value The City supports any legislative or regulatory action that increases the energy value for the electric customer.

Cap and Trade Program The City supports the use of California Air Resources Board’s (CARB) Cap and Trade program allowances and energy resources that are clean, renewable and cost effective.

Wireless and Telecommunication Facilities Oppose any federal or state legislation or regulatory policy that would further erode the ability of local governments to regulate wireless and other telecommunication facilities.

Local Water Use Control Support efforts to maintain and strengthen local control of water use and

2022 City of Ukiah Advocacy Platform
encourage water recycling and the many benefits of sustainability to Ukiah’s water supply, conserving the vital resource of potable water, and protecting our diverse water portfolio.

C. Local Control
Sustainable, Reliable Funding The City supports local, state and federal budget plans that provide sustainable, reliable funding for priority local government programs.

Local Control and Streamlining Regulations The City values its ability and authority to exercise local control, enable excellent public services and protect and enhance the quality of life for Ukiah residents and businesses. The City supports efforts to streamline regulations that simplify the job of running the City and opposes efforts that erode the City’s authority to control its own affairs.

Housing and Homelessness The City supports legislation that provides Cities additional funding and tools and preserves local authority to address housing production, affordability, and homelessness challenges.

D. Transportation and Streets
`
Transportation Infrastructure The City supports increases in transportation funding for local street and road improvements to promote investing in the maintenance and rehabilitation of aging infrastructure.

Alternative Funding Solutions Support legislation that reduces local reliance on local gas tax revenues for roads and streets improvements and proposes new alternative funding solutions with longer-term sustainability
E. Economic Development
Economic Development Opportunities The City embraces efforts to obtain funding for economic development and environmental initiatives, including planning and implementation of regional transportation and traffic congestion relief projects, and the creation of affordable housing. The City also supports legislation that provides incentives for job creation and retention, including legislation that increases funding and allowable uses for the Community Development Block Grant program.

F. Environmental
Clean Environment The City supports policy that advocates for a clean environment and policy to improve environmental standards and promote sustainable energy policies.

G. Public Safety
Public Safety Resources The City supports legislation and policiesthat enable local officials to access resourcesto provide quality police, fire, emergency management, emergency medical services, youth violence prevention initiatives, and to engage the community in its own safety.

Street Outreach Teams Support new funding from the county, state, and federal government for

2022 City of Ukiah Advocacy Platform
expanded Street Outreach Teams in collaboration with law enforcement, first responders, and the County’s health and mental health departments for those affected by homelessness and mental health issues.

Funding to Remove and Clean Homeless Encampments Support new funding from county, state, and federal sources for the legal removal and storage of homeless belongings and cleanup of areas impacted by illegal camping, including the abatement of abandoned vehicles.

Supportive Programs and Solutions Support legislation that assists in preventing and reducing crime, such as intervention and prevention programs, mental health initiatives, enhanced protective equipment, and solutions for at-risk individuals.

Support De-escalation Training Support police reform legislation that provides de-escalation training and the funding for such training, and that reduces unnecessary and excessive use of force.

Graffiti Abatement Support legislation that would strengthen state graffiti law and provide local government revenue and resources for graffiti abatement.

Speed Limits Support legislation that would allow local jurisdictions to set speed limits based upon safety findings and/or provide provisions for cost recovery of traffic enforcement.

H. Parks, Open Space, and Community
Sustainable Quality of Life The City values a sustainable quality of life and supports parks and open space, recreation facilities, environmental and climate protection, resource conservation, libraries, arts and culture and legislation and policies that emphasize sustainable development.

Park Infrastructure Support legislation that provides funding for rehabilitation, development, and capital improvements of local parks, open space, and community facilities.

Public Art Support legislation that provides funding to support public art, both performing and visual.

Funding for Youth and Seniors Support legislation that provides local funding for youth and senior recreational and enrichment programming.

I. Emergency Management
Disaster Management The City supports policy that helps improve disaster preparedness, response, recovery, and climate resiliency.

Funding for Emergency Management Support legislation, strategies, and initiatives that provide increased local, state, and federal funding for emergency and disaster preparedness, planning, response, and recovery.

2022 City of Ukiah Advocacy Platform
J. Public Workforce
Sustainable Pension and Retirement Health Benefits The City supports policy that promotes the sustainability of public pension and retirement health benefits.

Competitive and Valuable Employment Advocate for legislation that supports the City’s ability to provide competitive and valuable employment opportunities.

K. Planning and Land Use
Projects in the Sphere of Influence Oppose project entitlements in areas outside the City limits, but within the City’s General Plan proposed sphere of influence that do not conform to current City standards and/or standards within the Ukiah Valley Area Plan.

Changes of Organization Oppose requests for changes of organization (primarily, annexation) from other entities and agencies if those requests are done without prior collaboration with the City and are proposed within the City’s Sphere of Influence.

Regional Planning Support regional planning initiatives, especially those that may increase the supply of housing and employment opportunities for residents.

Long-Term Planning Support legislation and funding initiatives for long-term planning efforts related to affordable housing, economic development, and climate change adaptation and resiliency.

L. Diversity, Equity and Inclusion
Equitable Access Support legislation and funding that helps the City of Ukiah provide residents with equitable access to City employment, programs and services.

Eliminating Barriers Support legislation and funding that will allow the City and its community partners to provide all residents with the tools necessary to grow and thrive.

Community Engagement Support legislation and funding for the City and its community partners to proactively engage with residents on issues of prejudice, discrimination, and social justice to promote education, understanding, expanded opportunity, value, and acceptance of the diverse groups within our community, creating an environment where all feel welcome and safe in Ukiah.

Attachment 3
League of California Cities adopts 2022 State Action Agenda Dec 3, 2021
Contact: Kayla Sherwood
[email protected]
(530) 844-1744

FOR IMMEDIATE RELEASE
Sacramento – Today, the League of California Cities Board of Directors adopted the organization’s 2022 Action Agenda during its meeting.

City leaders who serve in leadership positions in Cal Cities divisions, departments, policy committees, and diversity caucuses convened during meetings over the last month to chart the organization’s priorities for 2022 and ensure they are laser focused on the issues most critical to our cities and the residents our members serve.

The 2022 Action Agenda is as follows:

1. Secure funding to increase the supply and affordability of housing and reform state housing laws to retain local authority. Secure adequate and sustainable funding for cities to increase construction of housing at all income levels, particularly affordable housing and workforce housing.

Reform state housing laws to ensure cities retain local decision-making to meet the needs of their communities.

2. Attain investments to strengthen and sustain critical infrastructure. Advocate for policies that strengthen the conditions of local streets, highways, bridges, public transit, and broadband to improve workforce and economic development. Secure support for the modernization and expansion of the statewide water grid, including infrastructure, storage, and conveyance. Work with stakeholders to provide cities with access to the tools needed to ensure projects are delivered efficiently and cost-effectively to meet current and future needs.

3. Secure increased funding and resources to prevent homelessness and assist individuals experiencing homelessness. Secure additional ongoing, flexible resources to provide navigation assistance, emergency shelters, and permanent supportive housing. Enhance city and county coordination and strengthen partnerships with stakeholders to ensure adequate wraparound services are available for adults and youth at risk of, or already experiencing, homelessness in our communities, and effectively address mental health and substance use disorders.

4. Strengthen disaster preparedness, resiliency, and recovery from climate change impacts through improved collaboration and resources. Secure additional resources and support to mitigate the effects of climate change, including catastrophic wildfires, drought, and sea level rise. Promote collaboration with other city, state, and federal governments, to strengthen disaster preparedness, resiliency, and recovery.
“Housing, homelessness, critical infrastructure, and the impacts of climate change — these priorities have been at the heart of local leaders’ efforts for years,” said League of California Cities President and Walnut Creek Council Member Cindy Silva. “The pandemic exacerbated these issues, many of them decades in the making, and highlighted the importance of a strong state investment to ensure cities

Attachment 3
have the resources necessary to protect their communities and improve the quality of life for all those who call California home.” With its agenda now set, Cal Cities will begin working immediately to advance these objectives in the state capitol.
“As local officials continue to display remarkable resilience in their commitment to serving their cities, the state has yet another opportunity in 2022 to invest directly into our communities and create truly transformative change for California’s residents,” said League of California Cities Executive Director and CEO Carolyn Coleman. “California’s cities will be actively seeking the state’s partnership that will ensure an equitable recovery for all of our communities next year.” Cal Cities’ Action Agenda for 2022 is available at www.calcities.org/action-agenda.

Established in 1898, the League of California Cities is a nonprofit statewide association that advocates for cities with the state and federal governments and provides education and training services to elected and appointed city officials.

Agenda Item No: 13.a.

MEETING DATE/TIME: 1/19/2022
ITEM NO: 2022-16

AGENDA SUMMARY REPORT
SUBJECT: Adopt a Resolution Authorizing the Exception to the 180-Day Waiting Period, and Authorizing the City’s Retired Electric Utility Director to Work on a Temporary Basis as an Extra Help Employee in Accordance with Government Code Sections 7522.56 and 21224.

DEPARTMENT: Electric Utility PREPARED BY: Sheri Mannion, H.R. Director/Risk Manager, Cindy Sauers, Assistant Electric Utility Director
PRESENTER:

Cindy Sauers, Electric Utility Director; Sheri
Mannion, Human Resources/Risk Management
Director
ATTACHMENTS:

1. Attachment 1 - Resolution Authorizing the Exception of the 180-Day Waiting Period Summary: Council will consider adopting a resolution authorizing the exception of the 180-day waiting period, and authorizing the City’s retired Electric Utility Director, Mel Grandi, to work on a temporary basis as an extra help employee.

Background: The Public Employee’s Pension Reform Act of 2013 (PEPRA) made substantial changes to public employee pension laws in California. One of those changes requires retired annuitants to be separated from employment for at least 180 days before returning to work for an employer in the same retirement system from which they receive a pension. An exception may be made if the governing body adopts a resolution to waive the waiting period, certifying the nature of the appointment is necessary to fill a critical need and is of limited duration. The appointment may not be placed on a consent calendar.

Discussion: In January 2019, a part-time Assistant Electric Utility Director position was created to assist the Director with high level operational and management tasks including the planning and supervision of the day to day activities of the department as well as participating with other agencies in the procurement, scheduling and delivery of energy to the City. During the COVID pandemic, the management work was divided with much of the day to day activities being handled by the Assistant and the energy procurement, scheduling, and delivery being handled by the Director. In July 2020, the Assistant Director position was changed to full time, and was anticipated to prepare the Assistant Director to be a potential candidate for the Director position upon his retirement. After 14 years at the City of Ukiah, Mel Grandi retired as the Electric Utility Director on December 30, 2021.

Ukiah's Electric Utility and the industry are experiencing a shortage of experienced energy professionals who, in Ukiah, are responsible for multi-million dollar and highly technical decisions that impact the city and customers. Additionally, the complexities of COVID has hindered the training and developing experience with energy, renewable, and carbon markets and policies. For these reasons, the department desires to employ Mr. Grandi on a temporary, hourly basis to assist with the transition and to continue the transfer of knowledge related to the procurement, scheduling, and delivery of energy, which is 2/3 of the Department's budget. Mr.

Grandi's vast knowledge of the industry and the challenges it is currently facing will assist the Department with a smooth and successful transition.

Staff recommends Council adopt a resolution (Attachment 1) authorizing the exception to the 180-day waiting

period, and authorizing the City’s retired Electric Utility Director to work on a temporary basis as an extra help employee.

Recommended Action: Adopt a resolution authorizing the exception to the 180-day waiting period, and authorizing the City’s retired Electric Utility Director to work on a temporary basis as extra help employee in accordance with Government Code Sections 7522.56 and 21224.

BUDGET AMENDMENT REQUIRED: None
CURRENT BUDGET AMOUNT: $130,860 80026400.51110; 80026110.51110, $52,344; 80026120.51110, $52,344; 80026220.51110, $26,172
PROPOSED BUDGET AMOUNT:

FINANCING SOURCE:

PREVIOUS CONTRACT/PURCHASE ORDER NO.:

COORDINATED WITH: Sage Sangiacomo, City Manager; Sheri Mannion, Human Resources/Risk Management Director

RESOLUTION No. 2022-xx

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF UKIAH FOR EXCEPTION TO THE 180-DAY WAIT PERIOD AND AUTHORIZING THE CITY’S RETIRED ELECTRIC UTILITY

DIRECTOR TO WORK ON A TEMPORARY BASIS AS AN EXTRA HELP IN ACCORDANCE WITH GOVERNMENT CODE SECTIONS 7522.56 & 21224
WHEREAS, section 7522.56 requires that post-retirement employment commence no earlier than 180 days after the retirement date, which is December 31st 2021; and WHEREAS, Government Code section 7522.56(f) provides that a retired person shall not be eligible to be employed pursuant to this section for a period of 180 days following the date of retirement unless he meets one of four conditions, which in this case would include (1) The employer certifies the nature of the employment and that the appointment is necessary to fill a critically needed position before 180 days have passed and the appointment has been approved by the governing body of the employer in a public meeting. The appointment may not be placed on a consent calendar; and
WHEREAS, in compliance with Government Code section 7522.56 the City must provide CalPERS this certification resolution when hiring a retiree before 180 days has passed since the incumbents retirement date; and
WHEREAS, the current incumbent, Mel Grandi, has retired on December 31st, 2021; and WHEREAS, the Ukiah City Council hereby appoints Mel Grandi as an extra help retired annuitant to perform some of the duties of Electric Utility Director for the City of Ukiah under Government Code Section 21224, effective January 24, 2022; and
WHEREAS, section 7522.56 provides that this exception of the 180 day wait period shall not apply if the retiree accepts any retirement-related incentive; and WHEREAS, the City of Ukiah and Mel Grandi certify that Mel Grandi has not and will not receive a Golden Handshake or any other retirement-related incentive; and WHEREAS, no matters, issues, terms, or conditions related to this employment and appointment have been or will be placed on a consent calendar; and
WHEREAS, the employment shall be limited to 960 hours per fiscal year; and WHEREAS, the compensation paid to retirees cannot be less than the minimum nor exceed the maximum monthly base salary paid to other employees performing comparable duties, divided by 173.333 to equal the hourly rate; and
WHEREAS, the maximum monthly base salary for this position is $16,498.22 and the hourly equivalent is $95.18 and the minimum monthly base salary for this position is $13,573.12 and the hourly equivalent is $78.31; and
WHEREAS, the hourly rate paid to Mel Grandi will be $95.18; and WHEREAS, Mel Grandi, will not receive any benefit incentive, compensation in lieu of benefit or other form of compensation in addition to his hourly pay rate; and Attachment 1

WHEREAS, sufficient funding is included in the FY 2021-2022 budget and contained within the Enterprise, Electric Utility budgeted salary accounts.

NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of Ukiah does hereby:

Certify the nature of the appointment of Mel Grandi as described herein and that this appointment is necessary to fill the critically needed position of Electric Utility Director for the City of Ukiah by January 24
th 2022, because of the critical nature of gas and electric energy analysis and procurement, his expertise and skills are needed to assist with the transition of the new Electric Utility Director.

PASSED AND ADOPTED by the City Council of the City of Ukiah at a regular meeting duly held on January 19, 2022, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:
_____________________________
Jim Brown, Mayor
ATTEST:
_______________________
Kristine Lawler, City Clerk

Agenda Item No: 13.b.

MEETING DATE/TIME: 1/19/2022
ITEM NO: 2022-1222

AGENDA SUMMARY REPORT
SUBJECT: Authorize Staff to Research and Possibly Apply for CalTrans' Clean California Grant; Authorize City Manager to Execute Grant Documents.

DEPARTMENT: City Manager /
Admin PREPARED BY: Shannon Riley, Deputy City Manager
PRESENTER: Shannon Riley, Deputy City Manager
ATTACHMENTS:

1. Guidelines - Clean CA Grant

2. FAQ - Clean CA Grant
Summary: City Staff is exploring the Clean California grant opportunity from CalTrans for activities including graffiti abatement, public art, wayfinding signage and more. With the application deadline of February 1st, Staff is seeking Council's support to continue exploration and, if appropriate, authorize the City Manager to execute grant documents.

Background: Caltrans is investing in removing litter, creating jobs, educating the public, and engaging the community to transform unsightly roadsides into spaces of pride for all Californians through $296 million in Clean California grants. (https://cleancalifornia.dot.ca.gov/local-grants) A number of the eligible activities - including graffiti abatement, public art, wayfinding and gateway signage, implementation of the strategic plan for the Ukiah segment of the Great Redwood Trail, and a staff person to manage these projects and volunteer programs - are of interest to city staff, who have been researching the grant to determine if this is a good fit for Ukiah.

Discussion: There is still due diligence to be performed prior to the application deadline of February 1st, particularly because many of the desired projects require coordination with other community partners. Further, depending on how the projects match with the grant guidelines (Attachment 1), there may be a required match that varies from 0-50%. Those matching funds may come from other entities that have monies dedicated to those projects, from matching Staff and/or volunteer time, and/or may come--in part--from the City. For more information regarding the grant, please see Attachment 2 (Frequently Asked Questions).

At this time, Staff is seeking Council's direction regarding the possible application for this grant, community input, and--if deemed appropriate and to not have a significant fiscal impact for the City--authorization for the City Manager to execute grant documents.

Recommended Action: Authorize Staff to research and possibly apply for the CalTrans Clean California; authorize the City Manager to execute grant documents.

BUDGET AMENDMENT REQUIRED: n/a
CURRENT BUDGET AMOUNT: n/a
PROPOSED BUDGET AMOUNT: n/a
FINANCING SOURCE: Not yet identified
PREVIOUS CONTRACT/PURCHASE ORDER NO.: n/a
COORDINATED WITH: Jim Robbins, Grant Manager and Neil Davis, Community Services Director