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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.
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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.
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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
-65-
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
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APPENDIX A
AUDITED FINANCIAL STATEMENTS
FOR FISCAL YEAR ENDING JUNE 30, 2021
Attachment 7
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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).
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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
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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]
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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.
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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.
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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
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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
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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
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APPENDIX C
SUMMARY OF CERTAIN PROVISIONS OF
PRINCIPAL LEGAL DOCUMENTS
Attachment 7
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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;
Attachment 7
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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.
Attachment 7
D-7
(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
Attachment 7
E-1
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.
Attachment 7
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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
Attachment 7
F-1
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
F-2
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
F-3
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
103512921.2
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
103512921.2
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
103512921.2
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
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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
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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
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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
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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: 2/2/2022
ITEM NO: 2022-1269
AGENDA SUMMARY REPORT
SUBJECT: Possible Introduction By Title Only of Ordinance Restricting the Retail Sale of Nitrous Oxide.
DEPARTMENT: City Attorney PREPARED BY: Darcy Vaughn, Assistant City Attorney PRESENTER: Darcy Vaughn, Assistant City Attorney
ATTACHMENTS:
1. Nitrous Oxide Sales Ordinance Final
Summary: The City Council will discuss and consider introducing an Ordinance restricting the retail sale of nitrous oxide canisters in the City.
Background: At the September 1, 2021 regular meeting, Council heard a presentation from the Ukiah Valley Youth Leadership Coalition, a program of the Redwood Community Services’ Arbor program, on the health and safety hazards posed by recreational use of nitrous oxide, and in particular the hazards posed to youth by nitrous oxide use. The Coalition proposed that Council consider banning retail sales of nitrous oxide canisters in the City limits.Council instructed staff to consider the proposed ban and to report back on the possible legal ramifications of adopting an ordinance that would prohibit retail sales of nitrous oxide canisters in the City limits.
At the October 20, 2021 regular meeting, Council directed the City Attorney's office to draft an ordinance that prohibits retail sales of nitrous oxide canisters at businesses operating under a tobacco retailer's license. The Council also stated that the enforcement mechanism in the ordinance should be civil/administrative, with one of the enforcement methods being suspension of a non-compliant business's tobacco retailer's license. The City Attorney's office has now drafted an ordinance that reflects Council's direction.
Discussion: The Nitrous Oxide Ordinance, attached here as Attachment 1, prohibits the sale of nitrous oxide by tobacco retailers in the City. The Ordinance carves out exceptions for legal sale, possession, and use of nitrous oxide as set forth in the California Penal Code. In order to streamline enforcement, the Ordinance refers to and incorporates the existing civil enforcement mechanism for violations of the City Code provisions regarding tobacco retailer license requirements. The Ordinance imposes a civil penalty of a one thousand dollar fine for noncompliant businesses that continue to sell nitrous oxide. Any business receiving notice of the fine may request a hearing to appeal the imposition of the fine. In addition, the Ordinance authorizes suspension or revocation of a non-compliant business's tobacco retailer's license. As with imposition of the fine, a non-compliant business may request a hearing to appeal suspension or revocation of their tobacco retailer's license.
Recommended Action: Introduce by title only the Ordinance Restricting the Retail Sale of Nitrous Oxide.
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: Councilmember Rodin
1 ORDINANCE NO.
ORDINANCE OF THE CITY COUNCIL OF THE CITY OF UKIAH
ADDING ARTICLE 7.1 TO DIVISION 2, CHAPTER 2 OF THE CITY CODE TO RESTRICT RETAIL SALES OF NITROUS OXIDE.
The City Council of the City of Ukiah hereby ordains as follows:
SECTION ONE. FINDINGS
1. The misuse of nitrous oxide causes death and disease and continues to be an urgent public health challenge.
2. Medical authorities have linked the recreational use of nitrous oxide to serious health problems, which can cause physical illness, mental illness, injury, and/or even death.
3. Restricting the sales and distribution of nitrous oxide in the City of Ukiah will reduce the number of persons in possession and who use nitrous oxide as an intoxicating drug and will promote public health, safety and welfare.
4. The recreational use of nitrous oxide continues to gain popularity at an alarming rate, especially among college aged, high school aged, and middle school aged children.
5. Nitrous oxide has legitimate purposes, including its use for medical and dental procedures, in cooking and cake decorating, and is commonly known to boost performance in automobiles. However, nitrous oxide has found its way to illegitimate purposes as an intoxicating drug.
6. The City of Ukiah exercises its local police powers to protect the health, safety, and welfare of all its citizens and takes nitrous oxide abuse seriously.
SECTION TWO.
Article 7.1 is hereby added to Division 2, Chapter 2, Article 11 of the Ukiah City Code and shall read as follows:
ARTICLE 7.1. NITROUS OXIDE
§2370 DEFINITIONS
The following words and phrases, whenever used in this article, shall have the meanings provided in this section unless the context clearly requires otherwise:
DEVICE: Any cartridge, compressed gas cylinder, apparatus, container, or other object used to contain or dispense or administer nitrous oxide.
2 NITROUS OXIDE: A colorless, nonflammable gas (N20) sometimes used in aerosols and sometimes used as an anesthetic, which, when inhaled, produces loss of sensibility to pain, oftentimes preceded by exhilaration and laughter and used often as an anesthetic in dentistry. Nitrous oxide is also known as “laughing gas.” PERSON: Any individual or entity howsoever organized or constituted.
TOBACCO RETAILER: Any person who sells, offers for sale, or does or offers to exchange for any form of consideration, tobacco or tobacco products. “Tobacco retailing” shall mean the doing of any of these things. This definition is without regard to the quantity of tobacco or tobacco products sold, offered for sale, exchanged, or offered for exchange.
§2371 SALE OR DISTRIBUTION OF NITROUS OXIDE
It shall be unlawful for any tobacco retailer in the City to attempt to sell, offer, distribute, or otherwise provide to any person Nitrous Oxide or a Device. §2372 EXCEPTIONS
Prohibitions in this chapter shall not apply to any person or retailer that possesses or distributes Nitrous Oxide under an express exemption pursuant to Penal Code § 381b-e. §2373 ENFORCEMENT
Any violation of this Article may be subject to a civil penalty of one thousand dollars.
Notice of the violation and fine will be given in accordance with Section 2358.A of this Code. Any person wishing to appeal the imposition of the civil penalty may file a request for a hearing pursuant to Section 2360 of this Code. If no request for a hearing is timely received, the determination of the City Manager or the duly authorized designee of the City Manager on the violation and the imposition of a fine shall be final and payment shall be made within thirty (30) days after notice of the fine was served.
In addition to any other penalty authorized by law, a tobacco retailer’s license issued pursuant to Article 7 of this Chapter may be suspended or revoked if the City Manager or the duly authorized designee of the City Manager determines that the person or his or her agents or employees have violated this Article. In the event that a tobacco retailer’s license is suspended or revoked for violation of this Article, the requirements of Section 2358.A and Section 2360 of this Code shall apply.
SECTION THREE.
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 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
Agenda Item No: 12.b.
MEETING DATE/TIME: 2/2/2022
ITEM NO: 2022-1268
AGENDA SUMMARY REPORT
SUBJECT: Receive Annual Report Regarding Review of Ordinance for Marijuana Dispensaries and Consider the Formation of an Ad Hoc to Review Potential Ordinance Modifications to Streamline the Permitting/Renewal Process and Other Potential Considerations.
DEPARTMENT: Community
Development PREPARED BY: Craig Schlatter, Community Development Director PRESENTER: Craig Schlatter, Community Development
Director; Mireya Turner, Planning Manager
ATTACHMENTS:
1. Marijuana Dispensaries Ordinance (Nos. 1176 and 1182) Summary: City Council will receive an annual report on the review of the Ordinance for marijuana dispensaries, collectively Ordinance Nos. 1176 and 1182, and provide direction as necessary.
Background: On February 15, 2017, the City Council adopted Ordinance No. 1176 for Medical Marijuana Dispensaries, and on November 1, 2017, adopted an amendment to No. 1176 regulating operation of dispensaries selling marijuana for adult use through Ordinance No. 1182. Collectively, the two Ordinances comprise the City's Marijuana Dispensaries Ordinance (Attachment 1).
On December 20, 2017, Council adopted Ordinance No. 1185 regulating personal and commercial cannabis cultivation. Then on January 17, 2018, Council adopted Ordinance No. 1186 for cannabis-related businesses and on May 2, 2018, adopted Ordinance No. 1188 amending Ukiah City Code for adult-use cannabis. Finally, on June 6, 2018, Council adopted Ordinance No. 1190 amending the use permit application process to establish operational standards for cannabis-related businesses. All six Ordinances, including the two ordinances regulating dispensaries, comprise the City's cannabis regulations. Ordinances can be reviewed by visiting the Documents and Maps webpage of the City’s website at: www.cityofukiah.com/documents-andmaps/.
Since adoption of the Marijuana Dispensaries Ordinance, Council has requested annual reports from Staff related to applications received, approved, and withdrawn; and an evaluation of Ordinance administration and effectiveness. As other cannabis-related business Ordinances have been adopted, annual reports have been expanded to report on these additional business types. Annual reports were presented to Council on December 19, 2018; October 2, 2019; and October 7, 2020.
Discussion: The 2021 annual report on cannabis-related businesses Ordinances ("the Ordinance") was due to Council on October 6, 2021. However, with four years of data on the effectiveness of the Ordinance in regulating these new (in 2017) types of Ukiah businesses, Staff delayed its 2021 annual report to discuss and analyze if modifications to the Ordinance may be recommended. Staff also discussed the Ordinance's effectiveness with the Planning Commission at their January 12, 2022, regular meeting. The following report provides data and an evaluation for the most recent evaluation period, October 7, 2020 to October 6, 2021, as well as an analysis of the Ordinance's effectiveness to regulate cannabis-related businesses in Ukiah since adoption of the marijuana dispensaries ordinance in 2017.
October 7, 2020 - October 6, 2021 Report
The City received two new applications for cannabis retail major use permits, and both were in process as of
October 6, 2020. One application received in 2019 for a manufacturing/distribution minor use permit was also still in process. Two annual renewals were approved during the reporting period, and an additional two renewals have been approved in the last two months since the end of the reporting period. All annual renewals are minor use permits and reviewed by the Zoning Administrator. Two cannabis retail use permits were withdrawn.
Analysis on Ordinance Effectiveness
The Cannabis Ordinance was analyzed by Planning Division Staff in a series of meetings in October and November 2021 to determine if modifications were needed. Discussed were regulatory components of the Ordinance that were working and regulatory components that could be improved. Possible modifications were further discussed with the Planning Commission at their regular meeting on January 12, 2022. This discussion can be reviewed at www.cityofukiah.com/meetings.
Overall, standards within the Ordinance, as designed by the 2017 cannabis (marijuana) ad hoc committee, Planning Commission, and City Council, are achieving their intended purpose. Discretionary review procedures for both minor and major use permits provide the needed level of review and oversight, and cost recovery procedures are adequate for the amount of work and staff time for the processing of applications. Operating cannabis businesses are generally a positive addition to the neighborhoods in which they are operating, and there have been no reported nuisance-related impacts.
Recommendations
In Staff's opinion, the Ordinance could be modified to streamline or enhance the City's responsiveness to this new business type. To explore this and possible other modifications further, Staff recommends Council reform the Cannabis Ad Hoc Committee. Staff further recommends Council accept this report and provide additional direction as necessary.
Recommended Action: 1. Receive annual report on the review of the ordinance for marijuana dispensaries;
2. Approve the formation of a Cannabis Ad Hoc Committee to explore ordinance modifications to streamline or enhance permitting/renewal processes and other potential changes; and
3. Provide direction as necessary to Staff.
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: Planning Managers Mireya Turner, Jesse Davis, and Michelle Irace
ORDINANCE NO. 1176
ORDINANCE OF THE CITY COUNCIL OF THE CITY OF UKIAH AMENDING CHAPTER 8 IN DIVISION 6; TABLE 3 IN SECTION 9223.1 OF ARTICLE 18, CHAPTER 2 IN DIVISION 9; AND SECTION 9254 IN ARTICLE 19, CHAPTER 2 IN DIVISION 9 OF THE UKIAH CITY CODE, ENTITLED " MEDICAL MARIJUANA DISPENSARIES"
The City Council of the City of Ukiah hereby ordains as follows.
SECTION 1
Chapter 8 in Division 6 of the Ukiah City Code is hereby amended to read as follows:
5700 FINDINGS AND PURPOSE
The City Council adopts the ordinance codified in this Chapter based upon the following findings:
A) In 1970, Congress enacted the Controlled Substances Act ("CSA") which, among other things, makes it illegal to import, manufacture, distribute, possess or use marijuana in the United States.
B) In 1996, the voters of the state of California approved Proposition 215, or the Compassionate Use Act of 1996, codified at Health and Safety Code § 11362. 5 et seq. (the "Act").
C) The Act creates a limited exception from criminal liability for seriously ill persons who are in need of medical marijuana for specified medical purposes and who obtain and use medical marijuana under limited, specified circumstances.
D) On January 1, 2004, SB 420 went into effect. SB 420, codified as Health and Safety Code §§ 11362. 7 — 11362.83 and known as the " Medical Marijuana Program" (" MMP") was enacted by the state legislature to clarify the scope of the act and to allow cities and other governing bodies to adopt and enforce rules and regulations consistent with SB 420.
E) After the enactment of the MMP and in response to the MMP's explicit reservation of local authority to regulate medical marijuana cultivation and distribution, the City Council took legislative notice of the fact that California cities and counties that had permitted the establishment of medical marijuana dispensaries had experienced serious adverse impacts associated with and resulting from such dispensaries, including an increase in crime, including burglaries, robberies, violence, illegal sales of marijuana, use of marijuana by minors and other persons without medical need in the areas immediately surrounding such medical marijuana dispensaries; and malodorous smells, indoor fire hazards, mold, fungus, and pests caused by indoor cultivation at dispensaries.
F) To address these potential adverse impacts, in 2007, the City Council enacted Ordinance 1095, § 1 (" Medical Marijuana Dispensaries Ordinance"), which prohibited and declared a public nuisance medical marijuana dispensaries in the City of Ukiah.
G) The 2007 Medical Marijuana Dispensaries Ordinance also states that the City Council' s intention is to prohibit the operation and location of dispensaries in the City "until such time as their legality is clearly established and a proposal can be developed that would satisfy the city council that the facility could operate without causing [ serious adverse impacts]".
Attachment 1
H) On October 9, 2015, the Governor signed into law AB 266, AB 243, and SB 643, which together comprise the Medical Marijuana Regulation & Safety Act (" MMRSA"). The MMRSA, which went into effect on January 1, 2016, created a statewide regulatory structure for the medical marijuana industry that also allows local governments to regulate the operation of marijuana businesses within their jurisdiction, pursuant to local ordinances. Specifically, the MMRSA allows the City of Ukiah to issue permits or licenses to operate marijuana businesses or prohibit their operation, to regulate or expressly prohibit the delivery of medical marijuana within its boundaries, and to regulate or expressly prohibit the cultivation of marijuana within its boundaries. Pursuant to the MMRSA, if the City opts not to expressly prohibit or regulate the cultivation, processing, delivery, and/ or dispensing of medical marijuana, the State will be the sole licensing authority for these activities in the City.
1) To protect the public health, safety, and welfare, it is the desire of the City Council to modify the City Code consistent with the MMP and the MMRSA, regarding the location and operation of medical marijuana dispensaries, delivery of medical marijuana within the boundaries of the City, and cultivation of medical marijuana within the boundaries of the City.
J) There have been a number of marijuana dispensing -related incidents in California, some including acts of violence committed by persons without a legitimate medical need to use marijuana.
K) The City Council finds that medical marijuana dispensing which exceeds the limitations set forth in these regulations will likely result in an unreasonable risk of crime and other adverse impacts and will likely create offensive odors to persons living nearby.
L) It is the City Council's intention that nothing in this Chapter shall be construed to ( 1) allow persons to engage in conduct that endangers others or causes a public nuisance; (2) allow the use of marijuana for non- medical purposes; or (3) allow any activity relating to the distribution or consumption of marijuana that is otherwise illegal.
M) Pursuant to California Health and Safety Code § 11362.71 et seq., the State Department of Health through the state's counties, is to be responsible for establishing and maintaining a voluntary medical marijuana identification card program for qualified patients and primary caregivers.
N) Health and Safety Code § 11362.71( b) requires every county health department, or its designee, to implement a procedure to accept and process applications from those seeking to join the identification program in the manner set forth in § 11362.71 et seq. 0) This Chapter is compatible with the general objectives of the general plan, in that a Medical Marijuana Dispensary use will be conditionally permitted in commercial and industrial districts, being similar to other permitted and conditionally permitted uses, such as pharmacies and medical clinics, and in that the use will be subject to strict review and conditions.
P) This Chapter will not be detrimental to the public health, safety and general welfare or adversely affect the orderly development of property, because the uses permitted under this Chapter will be subject to careful review, limited in scope and location, and subject to strict operating requirements, avoiding or limiting potential negative effects.
Q) It is the purpose and intent of this Chapter to regulate medical marijuana dispensaries in order to promote the health, safety, morals, and general welfare of residents and businesses within the City.
2
5701 INTERPRETATION AND APPLICABILITY.
A) This Chapter is not intended to create a positive conflict with the CSA, but rather to implement the MMRSA and related state laws.
B) Nothing in this Chapter is intended, nor shall it be construed, to exempt any marijuana - related activity from any and all applicable local and state construction, electrical, plumbing, land use, or any other building, fire, or land use standards or permitting requirements.
C) Nothing in this Chapter is intended, nor shall it be construed, to make legal any cultivation, transportation, sale, or other use of marijuana that is otherwise prohibited under California law.
D) All processing and distribution of medical marijuana within City limits shall be subject to the provisions of this Chapter, even if the processing, distribution, or cultivation existed or occurred prior to adoption of this Chapter.
E) Nothing in this Chapter is intended, nor shall it be construed, to allow or permit any commercial cannabis activity," as defined in Business and Professions Code § 19300.50), or any commercial or non- commercial activity involving marijuana use for recreational or other nonmedical purposes that is not otherwise authorized in the Ukiah City Code. 5702 DEFINITIONS.
For the purpose of this Chapter, the following words and phrases shall have the following meaning:
A) "Accessory building" shall have the same meaning as set forth in City Code § 9278.
B) " Applicant" means a person who is required to file an application for a permit under this Chapter, including an individual owner, managing partner, officer of a corporation, or any other operator, manager, employee, or agent of a Dispensary.
C) " City" means the City of Ukiah.
D) " Delivery" shall have the same definition as set forth in California Business and Professions Code § 19300.5, and as it may be amended.
E) " Dispensary Use Permit' means a permit required to operate a Medical Marijuana Dispensary within the City and that is issued pursuant to this Chapter.
F) " Drug paraphernalia" or "paraphernalia" shall have the same definition as set forth in City Code § 6071.
G) " Identification card" shall have the same definition as in California Health and Safety Code § 11362.7, and as it may be amended.
H) " Medical Marijuana Dispensary" or "Dispensary" means a " Dispensary" as defined in California Business and Professions Code § 19300.5, as it now reads or may be amended in the future.
1) " On -Site" means an activity or accessory use that is related to the primary use — i. e. lawful, retail distribution of medical marijuana — and is located on the same legal parcel as the primary use.
J) " Permittee" means the person to whom a Dispensary Use Permit is issued.
K) " Person" means any individual, partnership, co -partnership, firm, association, joint stock company, corporation, limited liability company or combination of the above in whatever form or character.
L) " Person with an identification card" shall have the same definition as set forth in California Health and Safety Code § 11362.7, and as it may be amended.
M) " Physician" means a licensed medical doctor ( M. D.) or a doctor of osteopathic medicine (D.O.).
N) " Primary caregiver" shall have the same definition as set forth in California Health and Safety Code § 11362.7, and as it may be amended.
0) "Qualified patient" shall have the same definition as set forth California Health and Safety Code § 11362. 7, and as it may be amended.
P) " School" means an institution of learning for minors, whether public or private, offering a regular course of instruction required by the California Education Code. This definition includes an elementary school, middle or junior high school, senior high school, or any special institution of education, but it does not include a vocational or professional institution of higher education, including any other college or university.
Q) " Use Permit" shall have the same definition as set forth in City Code § 9261 and as it may be amended.
R) " Youth -oriented facility" means a public park, church, museum, library, or licensed daycare facility.
S) " Zoning Administrator" means the Zoning Administrator of the City of Ukiah or the authorized representative thereof.
5703 DISPENSARY USE PERMIT REQUIRED TO OPERATE.
A) It is unlawful for any person to engage in, conduct or carry on, or to permit to be engaged in, conducted or carried on, in or upon any premises in the City the operation of a Medical Marijuana Dispensary unless the person first obtains and continues to maintain in full force and effect a Dispensary Use Permit from the City as required in this Chapter.
B) After January 1, 2018, or such time when State implementing regulations are in effect for the MMRSA, whichever is earlier, it shall be unlawful to operate any business or conduct any activity in the City for which a State license is required under the MMRSA without also having a valid State license pursuant to the MMRSA. Prior to implementation of the State license program pursuant to MMRSA, any operation of a Dispensary, cultivation of medical marijuana, or delivery of medical marijuana permitted by the City shall be conducted in accordance with this Chapter, the City's Zoning and Land Use Ordinances, and all laws pertaining to the equivalent license classification under the MMRSA.
0
C) The grant of a Dispensary Use Permit by the City shall not create an entitlement or vested right in the permitee to any permit or license to operate any commercial, non-medical marijuana businesses or conduct any commercial, non-medical marijuana activities within the City.
5704 TERM OF PERMITS AND RENEWALS REQUIRED.
A) Dispensary Use Permits issued under this Chapter shall expire one year following the date of their issuance which date shall appear on the face of the permit.
B) Dispensary Use Permits may be renewed by the Zoning Administrator for additional one-year periods upon application by the permittee, unless the permit is suspended or revoked in accordance with the provisions of this Chapter.
C) Applications for renewal shall be made at least 45 days before the expiration date of the permit and shall be accompanied by the nonrefundable application fee referenced in Section 5706 and all information necessary for the Zoning Administrator to evaluate the renewal request in light of the criteria listed in ( F) below. In acting on an application for renewal the Zoning Administrator shall follow the procedures set forth in Section 5711( B) and ( C), except that all references therein to the Planning Commission shall be deemed to refer to the Zoning Administrator. Upon timely application to renew a permit, the permit being renewed shall remain in effect until final action is taken to grant or deny the renewal application.
D) Applications for renewal made less than 45 days before the expiration date shall be processed in the same manner as a timely renewal application but shall not stay the expiration date of the permit.
E) Renewal applications shall be subject to duly noticed public hearings in accordance to the procedures set forth for minor use permit applications in Section 9262 of Division 9, Chapter 2, Article 20 of the City Code.
F) In determining whether to renew a Dispensary Use Permit, the Zoning Administrator will consider the following non-exclusive criteria, in addition to those criteria set forth in this Chapter at Section 5710:
1) Whether the Dispensary operated by the permittee has generated an excessive number of calls for police service compared to similarly situated businesses of the same size as the Dispensary.
2) Whether there have been excessive secondary criminal or public nuisance impacts in the surrounding area or neighborhood, including, but not limited to, disturbances of the peace, illegal drug activity, marijuana use in public, harassment of passersby, littering, loitering, illegal parking, loud noises, or lewd conduct. 3) Whether the Dispensary operated by the permittee has a history of inadequate safeguards or procedures that show it is likely that it will not comply with the operating requirements and standards in this Chapter.
4) Whether the Dispensary has failed to pay fees, penalties, or taxes required by this Code or has failed to comply with the production of records or other reporting requirements of this Chapter.
5) Whether it appears that the permittee has, in its renewal application, provided a false statement of material fact or has knowingly omitted a material fact. 6) Whether the renewal applicant or one or more of its officers, employees, partners, managers or members with management responsibilities ("Managers") has been convicted of a felony, or has engaged in misconduct that is substantially related to the qualifications, functions or duties of a Dispensary operator. A conviction within the 5
meaning of this Chapter means a plea or verdict of guilty, or a conviction following a plea of nolo contendere. Notwithstanding the above, an application shall not be denied solely on the basis that the applicant or any Manager has been convicted of a felony, if the person convicted has obtained a certificate of rehabilitation (expungement of felony record) under California law or under a similar federal statute or state law where the expungement was granted.
7) Whether the renewal applicant or Dispensary has previously or is currently engaged in unlawful, fraudulent, unfair, or deceptive business acts or practices.
G) The Zoning Administrator shall make findings of fact and either grant, grant conditionally, or deny the application for renewal of a Dispensary Use Permit. An applicant aggrieved by the Zoning Administrator's decision to issue or to deny a Dispensary Use Permit renewal may appeal such decision to the Planning Commission by filing an appeal. All determinations of the Zoning Administrator regarding Dispensary Use Permit renewals shall be final unless a written appeal, stating the reasons for the appeal, and the appeal fee, if any, as established by resolution of the City Council from time to time, are filed with the Planning Department within ten ( 10) days of the date the decision was made. The appeal fee will be in addition to the nonrefundable renewal application fee. Appeals may be filed by an applicant.
The Planning Commission shall conduct a duly noticed public hearing on the appeal in accordance to the applicable procedures as set forth in Section 9266 of Division 9, Chapter 2, Article 20 of the City Code, except that all references therein to the City Council shall be deemed to refer to the Planning Commission. At the close of the public hearing, the Planning Commission may affirm, reverse, or modify the appealed decision of the Zoning Administrator. All Planning Commission decisions on appeals of the Zoning Administrator's decision with regard to an application for a Dispensary Use Permit renewal are final for the City. 5705 GENERAL TAX LIABILITY.
As a prerequisite to obtaining a permit pursuant to the terms hereof, an operator of a Dispensary shall also be required to apply for and obtain a Business License or exemption from the City of Ukiah and obtain a seller's permit or exemption from the State Board of Equalization pursuant to Division 2, Part 2, Chapter 2, Article 2 of the Cal. Revenue and Taxation Code, commencing with Section 6066e. Dispensary sales shall be subject to sales tax consistent with State law.
5706 IMPOSITION OF FEES.
Every application for a Dispensary Use Permit or renewal shall be accompanied by an application fee, as established by resolution of the City Council from time to time. This application or renewal fee shall not include fingerprinting, photographing, and background check costs and shall be in addition to any other business license fee or permit fee imposed by this Code or other governmental agencies. Fingerprinting, photographing, and background check fees will be as established by resolution adopted by the City Council from time to time. 5707 LIMITATION ON LOCATION OF DISPENSARIES.
A) A Dispensary may only be located within the C1, C2, CN, M, and PD ( Commercial) zoning districts and in the GU, UC, and DC downtown zoning districts as designated in the General Plan, Zoning Map.
B) A Dispensary shall be in a visible location that provides good views of the Dispensary entrance, windows and premises from a public street.
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C) A Dispensary shall not be allowed in the following areas at the time of its permitted establishment:
1) Within 600 feet of a School, with that distance measured as the horizontal distance in a straight line from the property line of the School to the closest property line of the lot on which the Dispensary is to be located without regard to intervening structures, pursuant to California Health and Safety Code § 11362.768; or 2) Within 250 feet of a Youth -oriented facility other than a School, or another Dispensary, with that distance measured by street frontage from the property line of the Youth -oriented facility to the closest property line of the lot on which the Dispensary is to be located, and not radial distance; or
3) Abutting, on any side of the parcel upon which the Dispensary is located, a parcel occupied by a Youth -oriented facility, a School, or another Dispensary; or 4) Within any residential zoned parcel or primary land use, or any property with an underlying residential or mobile homes general plan land use designation. 5) On a parcel having a residential unit, or on a parcel directly abutting a residentially -zoned property, unless there are intervening non- residential uses between the Dispensary and the residential unit or the residentially -zoned property that the Planning Commission or, on appeal, the City Council determines sufficient to provide an appropriate separation.
D) A waiver of the provisions in subsections ( C)( 2)-( 5) of this Section may be granted if the applicant demonstrates on plans and materials presented for review and the Planning Commission determines that a physical barrier or other condition exists which achieves the same purpose and intent as the distance separation requirements established herein, and that, as a result, the Planning Commission makes a finding of no adverse impact resulting from the proposed location of the Dispensary.
5708 OPERATING REQUIREMENTS.
Dispensary operations shall be established and managed only in compliance with the following standards:
A) Criminal History. Any applicant, his or her agent or employees, volunteer workers, or any person exercising managerial authority of a Dispensary on behalf of the applicant shall not have been convicted of any of the felony offenses enumerated in Health and Safety Code § 19323( b)( 5), or of a felony or misdemeanor involving moral turpitude, or on probation for a drug offense, or engaged in misconduct related to the qualifications, functions or duties of a permittee.
B) Minors.
1) It is unlawful for any permittee, operator, or other person in charge of any Dispensary to employ any person who is not at least 21 years of age. 2) Persons under the age of 18 shall not be allowed on the premises of a Dispensary unless they are a qualified patient or a primary caregiver, and they are in the presence of their parent or guardian.
3) The entrance to a Dispensary shall be clearly and legibly posted with a notice indicating that persons under the age of 18 are precluded from entering the premises unless they are a qualified patient or a primary caregiver, and they are in the presence of their parent or guardian.
4) The burden of proof is on the Dispensary personnel to establish compliance with this subsection (B) by clear and convincing evidence.
C) Dispensary Access.
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1) The entrance into the Dispensary building shall be locked at all times with entry strictly controlled; e.g., a buzz -in electronic/mechanical entry system with a vestibule is highly encouraged. A viewer shall be installed in the door that allows maximum angle of view of the exterior entrance.
2) Dispensary personnel shall monitor site activity, control loitering and site access.
3) Only Dispensary staff, primary caregivers, qualified patients and persons with bona fide purposes for visiting the site shall be allowed on the premises at a Dispensary. 4) Potential patients or caregivers shall not visit a Dispensary without first having obtained a valid written recommendation from their physician recommending use of medical marijuana.
5) Only a primary caregiver and qualified patient shall be a in the designated dispensing area with Dispensary personnel. All other authorized visitors shall remain in the designated waiting area in the front entrance/lobby. 6) Restrooms shall remain locked and under the control of management.
D) Dispensing Operations.
1) The Dispensary may possess no more dried marijuana or plants per qualified patient or caregiver than permitted in strict accordance with California Health and Safety Code § 11362.77 and any other applicable State law, and as amended. 2) A Dispensary shall only dispense to qualified patients or caregivers with:
a) a currently valid physician' s approval or recommendation in compliance with the criteria in California Health and Safety Code § 11362.5 et seq. and valid official identification, such as a Department of Motor Vehicles driver's license or State Identification Card, or
b) a currently valid California Medical Marijuana Identification Card or a Patient ID Center Identification Card.
3) For qualified patients or caregivers without a California Medical Marijuana Identification Card or a Patient ID Center Identification Card, prior to dispensing medical marijuana, the Dispensary shall obtain verbal, online, or signed verification from the recommending physician' s office personnel that the individual requesting medical marijuana is a qualified patient.
4) A Dispensary shall not have a physician on-site to evaluate patients and provide a recommendation for medical marijuana.
5) Patient records shall be maintained and verified as needed, and at least annually verified with the qualifying patient's medical doctor or doctor of osteopathy unless the patient has provided a California Medical Marijuana Identification Card or a Patient ID Center Identification Card.
6) Information on prior year's operations shall be provided annually, as required in this Chapter. The operator shall adjust the operations as necessary to address issues.
E) Hours of Operation. Hours of Operation are limited to 9:00 a. m. to 9: 00 p. m., seven days a week.
F) Consumption Restrictions.
1) Marijuana shall not be consumed on the premises of the Dispensary. The term premises" includes the actual building, as well as any accessory structures, parking areas, or other surroundings within 200 feet of the Dispensary's entrance. 2) Dispensary operations shall not result in illegal redistribution of medical marijuana obtained from the Dispensary, or use in any manner that violates local, State or City Codes.
3) No person may consume marijuana, by smoking or vaporization, in any public places. Public places shall include, but are not limited to, city owned parks and/or city 8
sponsored events where designated as nonsmoking areas by resolution of the City Council, streets, sidewalks, alleys, highways, public parking lots as defined in City Code 6000 and as amended, enclosed places and places of employment as defined in City Code §§ 4503 and 4505 and as amended, and any other property owned or leased by the City, or in which the City holds a right-of-way easement, and which is open to members of the general public, except while actively passing through on the way to another destination. Nothing in this Section is intended, nor shall it be construed to be inconsistent with the California Indoor Clean Air Act of 1976, Health and Safety Code § 118875 et seq and as amended.
G) Retail Sales and Cultivation.
1) No cannabis shall be cultivated on the premises of the Dispensary, except in compliance with this Chapter and with City Code §§ 6093 and 9254 and Health and Safety Code § 11362.5 et seq. The space devoted to on- site cultivation at a permitted Dispensary shall not exceed twenty-five percent of the total floor area, but in no case more than five hundred square feet. Cultivation shall be limited to interior areas of buildings. a) Except for immature nursery stock marijuana plants, marijuana plants grown by the Dispensary shall only be utilized for production of processed marijuana to dispense to patients.
b) A security plan for the growing area shall be submitted to the Ukiah Police Chief for review and approval. Such plan shall include: security alarms and surveillance systems; physical measures to prevent access to the area by anyone other than Dispensary staff; and physical measures to prevent vehicle penetration of the growing area.
c) The cultivation area shall include a one- hourfirewall assembly and shall not create excessive humidity or mold conditions. The cultivation area shall have an air treatment system that prevents odors generated from the cultivation of marijuana on the Dispensary property from being detected by any reasonable person of normal sensitivity outside the Dispensary property, as set forth in City Code § 5708( 1)( 4). The medical marijuana cultivation area shall be in compliance with the current, adopted edition of the California Building Code as regards Natural Ventilation or Mechanical Ventilation.
d) Cultivation facilities are strongly encouraged to utilize the most water - efficient and environmentally -responsible cultivation practices available. The City reserves the right to require annual reports on cultivation facility practices, including but not limited to cultivation mediums and water use methods. e) The cultivation use shall comply with applicable stormwater, wastewater, and Building Code requirements and any applicable State or Federal law, including the Clean Water Act, 33 U. S.C. § 1251 et seq. 2) With the approval of the Planning Commission, a Dispensary may conduct or engage in the commercial sale of specific products, goods or services in addition to the provision of medical marijuana and other items permitted by these regulations on terms and conditions consistent with this Chapter and applicable law. 3) Up to 150 square feet of the total square footage of the Dispensary may be utilized for display and sales of devices necessary for administering medical marijuana, including but not limited to rolling papers and related materials and devices, pipes, water pipes, and vaporizers. Such devices may only be provided to qualified patients or primary caregivers and only in accordance with Health and Safety Code § 11364.5 and as amended.
4) Retail sales of medical marijuana that violate California law or this Chapter are expressly prohibited.
5) A Dispensary shall meet all the operating criteria for the dispensing of medical marijuana as is required pursuant to California Health and Safety Code § 11362. 5 et seq and as amended.
6) The provision of locally -grown and organic marijuana is encouraged.
H) Operating Plans.
1) Floor Plan. A Dispensary shall have a lobby waiting area at the entrance to receive clients, and a separate and secure designated area for dispensing medical marijuana to qualified patients or designated caregivers. The primary entrance shall be located and maintained clear of barriers, landscaping and similar obstructions so that it is clearly visible from public streets, sidewalks or site driveways. 2) Storage. A Dispensary shall have suitable locked storage on premises, identified and approved as a part of the security plan, for after-hours storage of medical marijuana.
3) Minimum Staffing Levels. The premises shall be staffed with at least one person during hours of operation who shall not be responsible for dispensing medical marijuana. 4) Odors Control. The Dispensary shall have an air treatment system that prevents odors generated from the storage and cultivation of marijuana on the Dispensary property from being detected by any reasonable person of normal sensitivity outside the Dispensary property. To achieve this, both the storage and cultivation areas shall be, at minimum, mechanically ventilated with a carbon filter or superior method. 5) Security Plans. A Dispensary shall provide adequate security on the premises, as approved by the Chief of Police and reviewed by the Planning Commission, including lighting and a premise and panic alarm system monitored by a licensed operator, to insure the safety of persons and to protect the premises from theft. 6) Security Cameras. Security surveillance cameras shall be installed to monitor the main entrance and exterior of the premises to discourage loitering, crime, illegal or nuisance activities.
7) Security Video Retention. Security video shall be maintained for 90 days. 8) Alarm System. Professionally monitored premise and panic alarm system shall be installed and maintained in good working condition.
9) Emergency Contact. A Dispensary shall provide the Chief of Police with the name, e-mail address, phone number and facsimile number of an on- site community relations staff person to whom one can provide notice if there are operating problems associated with the Dispensary. The Dispensary shall make every good faith effort to encourage neighborhood residents to call this person to try to solve operating problems, if any, before any calls or complaints are made to the City. 1) Signage and Notices.
1) A notice shall be clearly and legibly posted in the Dispensary indicating that smoking, ingesting or consuming marijuana on the premises or in the vicinity of the Dispensary is prohibited. The notice shall be posted in both English and Spanish. 2) Signs on the premises shall not obstruct the entrance or windows. 3) Address identification shall comply with illuminated address signs requirements.
4) Business identification signage shall be limited to that needed for identification only, consisting of a single window sign or wall sign that shall comply with City Code § 3227 and any other City Code provisions regulating signage.
J) Employee Records. Each owner or operator of a Dispensary shall maintain a current register of the names of all volunteers and employees currently working at or employed by the Dispensary, and shall disclose such registration for inspection by any City officer or official for purposes of determining compliance with the requirements of this Chapter. 10 I
K) Patient Records. Information identifying the names of patients, their medical conditions, or the names of their primary caregivers is confidential and such disclosure is prohibited pursuant to the federal Health Insurance Portability and Accountability Act of 1996 (42 U. S. C. Sec. 1320d et seq.) and the Confidentiality of Medical Information Act ( California Civil Code § 56 etseq.). In orderto protect patient confidentiality, the Dispensary shall maintain records of all qualified patients with a valid identification card and primary caregivers with a valid identification card using only the identification card number issued by the State, or its agent, pursuant to California Health and Safety Code § 11362.7 et seq. Such records may be maintained on or off-site, and shall be made available for inspection by any City official authorized to enforce this Chapter for purposes of determining compliance with the requirements of this Chapter.
L) Staff Training. Dispensary staff shall receive appropriate training for their intended duties to ensure understanding of rules and procedures regarding dispensing in compliance with state and local law, and the Dispensary shall employ properly trained or use professionally -hired security personnel in accordance with the conditions of its permit.
M) Site Management.
1) The operator of the establishment shall take all reasonable steps to discourage and correct objectionable conditions that constitute a nuisance in parking areas, sidewalks, alleys and areas surrounding the premises and adjacent properties during business hours if directly related to the patrons of the subject Dispensary. a) " Reasonable steps" shall include calling the police in a timely manner; and requesting those engaging in objectionable activities to cease those activities, unless personal safety would be threatened in making the request. b) " Nuisance" includes, but is not limited to, disturbances of peace, open public consumption of marijuana or alcohol, excessive pedestrian or vehicular traffic, illegal drug activity, harassment of passersby, excessive littering, excessive loitering, illegal parking, excessive loud noises, especially late at night or early in the morning hours, lewd conduct or excessive police detentions and arrests. 2) The operator shall take all reasonable steps to reduce loitering in public areas, sidewalks, alleys and areas surrounding the premises and adjacent properties during business hours.
3) The operator shall provide Dispensary patients with a list of the rules and regulations governing medical marijuana use and consumption within the City and recommendations on sensible marijuana etiquette.
N) Compliance with Other Requirements. The operator shall comply with all applicable provisions of local, state or federal laws, regulations or orders, as well as any condition imposed on any permits issued pursuant to applicable laws, regulations or orders. 0) Confidentiality. The information provided for purposes of this Section shall be maintained by the City as confidential information, and shall not be disclosed as public records unless pursuant to subpoena issued by a court of competent jurisdiction or otherwise compelled by court order.
P) Display of Permit. Every Dispensary shall display at all times during business hours the permit issued pursuant to the provisions of this Chapter for such Dispensary in a conspicuous place so that the same may be readily seen by all persons entering the Dispensary.
Q) Reporting and Payment of Fees. Each permittee shall file an annual statement with the Planning Department: ( 1) indicating the number of patients served by the Dispensary within the previous calendar year, ( 2) the continuing accuracy of the information in the prior year's 11
Dispensary Use Permit application, ( 3) documenting any changes or additions to that information as of the date for renewal of the Permit, any citizen complaints, City Code violations, and calls for law enforcement during the prior year, the applicant's compliance with applicable City and State law governing the operation of dispensaries, and ( 4) including any additional information the Planning Department deems necessary to administer this Chapter, and pay all annual permit fees.
R) Alcoholic Beverages. No Dispensary shall hold or maintain a license from the State Division of Alcoholic Beverage Control for the sale of alcoholic beverages, or operate a business on the premises that sells alcoholic beverages. No alcoholic beverages shall be allowed or consumed on the premises.
S) Dispensaries shall comply with the parking requirements for medical office uses.
T) Inspections. During normal business hours, Dispensaries permitted under this Chapter shall provide access for administrative inspections by City officials or officers to verify compliance with this Chapter. Any Dispensary's refusal to comply with this Section shall be deemed a violation of this Chapter.
5709 APPLICATION PREPARATION AND FILING.
A) Application Filing. A complete Dispensary Use Permit application submittal packet shall be submitted in accordance with City Code § 9262, including a detailed written statement as to how the proposed Dispensary complies with Sections 5707 and 5708, and any other information or submissions required by this Chapter. All applications for Dispensary Use Permits shall be filed with the Planning Department, using forms provided by the City, and accompanied by the applicable filing fee and any other applicable fees or charges. It is the responsibility of the applicant to provide information required for approval of the permit. The application shall be made under penalty of perjury.
B) Eligibility for Filing. Applications may only be filed by the owner of the subject property, or person with a lease signed by the owner or duly authorized agent allowing them to occupy the property for the intended use. If the applicant is a lessee, a copy of the duly executed lease currently in effect must accompany the application.
C) Filing Date. The filing date of any application shall be the date when the City receives the last submission of information or materials required in compliance with the submittal requirements specified herein.
D) Effect of Incomplete Filing. Upon notification that an application submittal is incomplete, the applicant shall submit any additional documents or information required to complete the application within thirty ( 30) days of the date the applicant is notified in writing by the Planning Department that the application is incomplete. If the applicant fails to complete the application within said thirty ( 30) days, the application shall be deemed withdrawn and a new application submittal that complies with Sections 5709(A) and ( F) shall be required in order to proceed with the application.
E) Effect of Other Permits or Licenses. The fact that an applicant possesses other types of state or City permits or licenses does not exempt the applicant from the requirement of obtaining a Dispensary Use Permit.
F) Submittal Requirements. Any application for a Dispensary Use Permit shall include the following information.
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1) Applicant(s) Name. The full name ( including any current or prior aliases, or other legal names the applicant is or has been known by, including maiden names), present address, and telephone number of the applicant; 2) Applicant(s) Mailing Address. The address to which notice of action on the application is to be mailed;
3) Previous Addresses. Previous addresses for the past five years immediately prior to the present address of the applicant;
4) Verification of Age. Written proof that the applicant is over the age of 21 years of age;
5) Physical Description. Applicant's height, weight, color of eyes and hair; 6) Photographs. Passport quality photographs for identification purposes; 7) Employment History. All business, occupation, or employment of the applicant for the five years immediately preceding the date of the application; 8) Tax History. The Dispensary business tax history of the applicant, including whether such person, in previously operating in this or another city, county or state under license has had a business license revoked or suspended, the reason therefor, and the business or activity or occupation in which the applicant engaged subsequent to such action of suspension or revocation;
9) Management Information. The name or names and addresses of the person or persons having the management or supervision of applicant's business; 10) Criminal Background. A background investigation verifying whether the person or person having the management or supervision of applicant's business has been convicted of a crime(s), the nature of such offense(s), and the sentence(s) received therefor;
11) Employee Information. Number of employees, volunteers, and other persons who will work at the Dispensary;
12) Plan of Operations. A plan of operations describing how the Dispensary will operate consistent with the intent of State law and the provisions of this Chapter, including but not limited to:
a) Ensuring that the Dispensary will not engage in retail sales of medical marijuana that violate California law or this Chapter.
b) Controls that will assure medical marijuana will be dispensed to qualifying patients or caregivers only.
c) Controls that will ensure access to Dispensary premises is adequately monitored and restricted to pre -approved qualified patients and caregivers. 13) Written Project Description. A written description summarizing the proposed Dispensary use size, number of patients, characteristics and intent; 14) Written Response to Dispensary Standards. The applicant shall provide a comprehensive written response identifying how the Dispensary plan complies with the each of the standards for review in this Chapter, specifically the limitation on location and operating requirements in Sections 5707 and 5708;
15) Written Response to Criteria for Review Section. The applicant shall provide a written response indicating the method by which each of the criteria for review enumerated in Section 5710 has been satisfied;
16) Security Plan. A detailed security plan outlining the proposed security arrangements for insuring the safety of persons and to protect the premises from theft.
The plan shall include installation of security cameras, a premise and panic alarm system monitored by a licensed operator, and a security assessment of the site conducted by a qualified professional;
17) Floor Plan. A sketch or diagram showing the interior configuration of the premises, including a statement of the total floor area occupied by the Dispensary. The sketch or diagram need not be professionally prepared, but must be drawn to a designated 13
scale or drawn with marked dimensions of the interior of the premises to an accuracy of plus or minus six inches;
18) Site Plan. A sketch or diagram showing exterior configuration of the premises, including the outline of all structures, parking and landscape areas, and property boundaries. The sketch or diagram need not be professionally prepared, but must be drawn to a designated scale or drawn with marked dimensions to an accuracy of plus or minus six inches;
19) Accessibility Evaluation. A written evaluation of accessibility to and within the building, and identification of any planned accessibility improvements. 20) Neighborhood Context Map. An accurate straight-line drawing depicting the building and the portion thereof to be occupied by the Dispensary, and: ( a) the property lines of any School within 600 feet of the property line of the Dispensary for which a permit is requested, ( b) the property lines of any Dispensary within 250 feet of the primary entrance of the Dispensary for which a permit is requested, and ( c) the property lines of any youth -oriented facility or residential zone or use within 250 feet of the primary entrance of the Dispensary;
21) Lighting Plan. A lighting plan showing existing and proposed exterior premises and interior lighting levels that would be the minimum necessary to provide adequate security lighting for the use and comply with all City standards regarding lighting design and installation. All lighting shall be fully hooded and downcast, and shall not shine towards the night sky, adjacent property or any street. 22) City Authorization. Written authorization for the City, its agents and employees to seek verification of the information contained within the application; 23) Statement of Owner's Consent. A statement in writing by the applicant that he or she certifies under penalty of perjury that the applicant has the consent of the property owner and landlord to operate a Dispensary at the location; 24) Applicant's Certification. A statement in writing by the applicant that he or she certifies under penalty of perjury that all the information contained in the application is true and correct;
25) Other Information. Such other information as deemed necessary by the Planning Department to demonstrate compliance with this Chapter including all City and State Codes, including operating requirements established in this Chapter.
G) Renewal. Applications for one-year renewal shall be accompanied by the following minimum information:
1) The operator shall report the number of patients served and pay applicable fees, as required by this Chapter.
2) The operator shall provide a detailed description of any adjustments and changes proposed or that have occurred in Dispensary operations to address issues, or comply with laws.
3) The operator shall identify any problems encountered during operations and how they have been addressed.
4) The operator shall identify how the Dispensary has managed its operations to comply with the operating requirements of this Chapter and with State law. 5710 CRITERIA FOR REVIEW.
In addition to the findings required in City Code § 9262, the Planning Commission shall consider the following criteria in determining whether to grant or deny a Dispensary Use Permit, and the Zoning Administrator shall consider the following criteria in determining whether to grant or deny renewals of a Dispensary Use Permit:
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A) That the Dispensary Use Permit is consistent with the intent of the Compassionate Use Act of 1996, the MMRSA, and related State law, the provisions of this Chapter and the City Code, including the application submittal and operating requirements herein.
B) That the Dispensary location is not identified as having significant crime issues ( e.g., based upon crime reporting statistics as maintained by the Police Department).
C) That there have not been significant numbers of calls for police service, crimes or arrests in the area or to an existing Dispensary location.
D) That an applicant or employee is not under 21 years of age.
E) That all required application materials have been provided and/or the Dispensary has operated successfully in a manner that shows it would comply with the operating requirements and standards specified in this Chapter.
F) That all required application or annual renewal fees have been paid and reporting requirements have been satisfied in a timely manner.
G) That the location is not prohibited by the provisions of this Chapter or any local or state law, statute, rule or regulation and no significant nuisance issues or problems are anticipated or have resulted from Dispensary operations.
H) That the site plan, floor plan, and security plan have incorporated features necessary to assist in reducing potential crime -related problems and as specified in the operating requirements in Section 5708. These features may include, but are not limited to, security on- site; procedure for allowing entry; openness to surveillance and control of the premises; the perimeter, and surrounding properties; reduction of opportunities for congregating and obstructing public ways and neighboring property; illumination of exterior areas; and limiting furnishings and features that encourage loitering and nuisance behavior.
1) That no Dispensary use, owner, permittee, agent, or employee has violated any provision of this Chapter including grounds for suspension, modification or revocation of a permit.
J) That all reasonable measures have been incorporated into the plan and/or consistently taken to successfully control the establishment's patrons' conduct resulting in disturbances, vandalism, crowd control inside or outside the premises, traffic control problems, marijuana use in public, or creation of a public or private nuisance, or interference with the operation of another business.
K) That the Dispensary would not adversely affect the health, peace or safety of persons living or working in the surrounding area, overly burden a specific neighborhood with special needs or high impact uses, or contribute to a public nuisance; or that the Dispensary has resulted in repeated nuisance activities including disturbances of the peace, illegal drug activity, marijuana use in public, harassment of passersby, excessive littering, excessive loitering, illegal parking, excessive loud noises, especially late at night or early in the morning hours, lewd conduct, or police detentions or arrests.
L) That any provision of the City Code or condition imposed by a City issued permit, or any provision of any other local, or State law, regulation, or order, or any condition imposed by permits issued in compliance with those laws has not been violated. 15
M) That the applicant has not violated any local or State law, statute, rule or regulation respecting the distribution, possession, or consumption of marijuana.
N) That the applicant has not knowingly made a false statement of material fact or has knowingly omitted to state a material fact in the application for a permit. 0) That the applicant, his or her agent or employees, or any person who is exercising managerial authority on behalf of the applicant has not been convicted of a felony, or of a misdemeanor involving moral turpitude, or has engaged in misconduct related to the qualifications, functions or duties of a permittee.
P) That the applicant has not engaged in unlawful, fraudulent, unfair, or deceptive business acts or practices.
Q) That adequate parking will be provided at a rate of one space for every 200 gross square feet of retail space, office space, and similar floor areas, pursuant to City Code § 9198(F)( 1).
5711 INVESTIGATION AND ACTION ON APPLICATION.
After the making and filing of a complete application for the Dispensary Use Permit and the payment of the fees, the applicant shall complete a fingerprint background check and the Police Department shall conduct an investigation of the application. In processing the application:
A) The Planning Department shall refer the application to any other City departments as necessary to complete the review of the application.
B) Following provision of complete application materials, inter -departmental review, and compliance with the California Environmental Quality Act, the Planning Department shall schedule the Dispensary Use Permit for Planning Commission review. In making a decision to grant or deny the application the Planning Commission shall follow the notice and hearing procedures and make the findings required by City Code § 9262(C) -(F) and shall either grant or deny the application in accordance with the provisions of this Chapter.
C) In approving a Dispensary Use Permit, the Planning Commission may impose conditions, restrictions or require revisions to the proposal to comply with the purpose and intent of this Chapter.
D) The Planning Department shall cause a written notice of the Planning Commission decision to issue or deny a permit to be mailed to the applicant by U.S. mail. 5712 APPEAL FROM PLANNING COMMISSION DETERMINATION.
A) An applicant aggrieved by the Planning Commission decision to issue or to deny a Dispensary Use Permit may appeal such decision to the City Council by filing an appeal. All determinations of the Planning Commission regarding Dispensary Use Permits shall be final unless a written appeal, stating the reasons for the appeal, and the appeal fee, if any, as established by resolution of the City Council from time to time, are filed with the City Council within ten ( 10) days of the date the decision was made. Appeals may be filed by an applicant or any interested party. An interested party may appeal only if he or she appeared and stated his or her position during the hearing on the decision from which the appeal is taken. 16
B) The City Council shall conduct a duly noticed public hearing on the appeal in accordance to the procedures applicable to an appeal of a decision to grant or deny a use permit as set forth in Division 9, Chapter 2, Article 20 of the City Code. At the close of the public hearing, the City Council may affirm, reverse, or modify the appealed decision of the Planning Commission. All City Council decisions on appeals of the Planning Commission' s decision with regard to an application for a Dispensary Use Permit are final for the City. 5713 REVOCATION.
A) Any Dispensary Use Permit issued under the terms of this Chapter may be revoked by the Zoning Administrator, when it shall appear to the Administrator that the use for which the Dispensary Use Permit was granted is not being conducted in compliance with the Dispensary Use Permit as conditioned, the permittee has violated any of the requirements of this Chapter, or the Dispensary is operated in a manner that violates the provisions of this Chapter, including the criteria for review and operating requirements sections, or conflicts with State law.
B) The Zoning Administrator shall conduct revocation proceedings in compliance with Section 9262( H) of this Code, except that all references therein to the Planning Commission shall be deemed to refer to the Zoning Administrator. Notice of the hearing required by said Section shall be given in compliance with Section 9262(C). In addition, notice of the revocation hearing, including a description of the facts and violations relied upon in seeking revocation, shall be served on the permit holder by personal service, overnight courier or registered United States Mail, return receipt requested, not later than ten ( 10) day prior to the hearing. Service shall be deemed complete when received by the permit holder or forty-eight hours after deposit in the United States Mail, whichever occurs first. Notice shall be sent to the address as shown on the permit application or to an address which the permit holder has requested in writing that the City use for official communications. The address shall not be a Post Office box, but must be a physical address.
C) If any person holding a permit or acting under the authority of such permit under this Chapter is convicted of a public offense in any court for any offense that would constitute a violation of their Dispensary Use Permit or this Chapter, the Zoning Administrator may revoke such permit forthwith without any further action thereof, other than giving notice of revocation to the permittee.
D) The final decision of the Zoning Administrator to revoke a Dispensary Use Permit may be appealed to the Planning Commission. The appeal hearing shall be conducted in compliance with City Code Section 9266, except that all references therein to the City Council in an appeal of a Zoning Administrator decision shall be deemed to refer to the Planning Commission. 5714 EFFECT OF REVOCATION.
When a final decision has been made revoking any Dispensary Use Permit provided for in this Chapter, no new application for a Dispensary Use Permit shall be accepted from the applicant and no such Permit shall be issued to such person or to any corporation or other business entity, including but not limited to, a partnership or limited liability company, in which he or she shall have any direct or indirect beneficial, financial or ownership interest for a period of three years after the action revoking the Permit.
17
5715 TRANSFER OF PERMITS.
A) A permittee shall not operate a Dispensary under the authority of a Dispensary Use Permit at any place other than the address of the Dispensary stated in the application for the permit.
B) A permittee shall not transfer ownership or control of a Dispensary, including by transferring a controlling interest in the permittee, or transfer a Dispensary Use Permit to another person or entity unless and until the transferee obtains its own Dispensary Use Permit. Any other assignment of a Dispensary Use Permit is prohibited.
C) No Dispensary Use Permit may be transferred when the Zoning Administrator or Planning Commission have notified the permittee that the permit has been or may be revoked.
D) Any attempt to transfer a Dispensary Use Permit either directly or indirectly in violation of this Section is declared void, and the permit shall be deemed revoked. 5716 TIME LIMIT FOR FILING APPLICATIONS UPON ANNEXATION.
Any Dispensary that was legally established in Mendocino County (" County") and which is subsequently annexed into the City must apply for and obtain a Dispensary Use Permit in compliance with the provisions of this Chapter within 90 days from the date the annexation becomes effective. Continued operation of a Dispensary without a permit more than 90 days after annexation shall constitute a violation of this Chapter, unless an extension of the 90 day period is approved by the Planning Commission upon the applicant's demonstration of reasonable grounds to do so.
5717 MARIJUANA DELIVERY.
A) A permitted Dispensary located in the City may deliver marijuana to qualified patients and caregivers at their residence in the City. Such permissible delivery of marijuana to qualified patients shall be limited to delivery by lawfully -operated, permitted dispensaries located within the jurisdictional limits of the City. Any individual engaging in the activity of delivering medical marijuana from a permitted Dispensary to a qualified patient must have a business license in accordance with Division 2, Chapter 1, Article 3 of the City Code.
All other marijuana delivery is a prohibited activity in the City, except where the City is preempted by federal or state law from enacting a prohibition on such activity.
B) In conformity with City Code § 6001, it shall be unlawful for any qualified individual engaging in the activity of delivering medical marijuana from a permitted Dispensary to a qualified patient to be in an intoxicated condition or under the influence of narcotic drugs within the corporate City limits of the City in, on, or about any automobile, motorcycle, motor vehicle, street car, railroad car or other vehicle.
5718 VIOLATIONS.
A) It is unlawful for any person, individual, partnership, co -partnership, firm, association, joint stock company, corporation, limited liability company or combination of the above in whatever form or character to violate any provision or fail to comply with any of the requirements of this Chapter.
18
B) A violation of this Chapter shall be subject to the enforcement and penalties specified in City Code § 5722.
5719 REMEDIES.
This Chapter shall be subject to enforcement pursuant to Division 8, Article 22 of this Code.
5720 SEPARATE OFFENSE FOR EACH DAY.
Any person who violates any provision of this Chapter shall be guilty of a separate offense for each and every day during any portion of which any such person commits, continues, permits, or causes a violation thereof, and shall be penalized accordingly. 5721 HOLD HARMLESS.
As a condition of approval of any permit issued pursuant to this Chapter for medical marijuana cultivation, processing, or distribution, the permittee shall indemnify, defend and hold harmless the City of Ukiah and its agents, officers, elected officials, and employees for any claims, damages, or injuries brought by a permittee's clients or employees, adjacent or nearby property owners or other third parties due to permitted uses or operations, and for any expense incurred by City as a result of or in defense of any such claim.. 5722 PENALTIES.
A) It shall be unlawful and constitute a misdemeanor for any person to violate the provisions of this Chapter, punishable by a fine of not more than one thousand dollars ($1, 000.00) or imprisonment in the county jail for a period of not more than six (6) months or both. This penalty shall not apply, if prohibited by state law.
B) The penalty provided herein is in addition to any other penalty or remedy available at law or in equity, whether civil or criminal, for any violation of this Chapter or engaging in activity requiring a City license or permit, including, without limitation, a business license or building permit, without first obtaining such permit or license. 5723 JUDICIAL REVIEW.
Judicial review of a decision made under this Chapter may be had by filing a petition for a writ of mandate with the superior court in accordance with the provisions of the California Code of Civil Procedure § 1094. 5.
Any such petition shall be filed within 90 days after the day the decision becomes final as provided in California Code of Civil Procedure § 1994.6 which shall be applicable for such actions.
SECTION 2
Table 3 in Section 9223. 1 of Article 18, Chapter 2 in Division 9 of the Ukiah City Code is hereby amended by adding a new permit category, DUP — Use Allowed with a Dispensary Use Permit, to the heading column entitled " Use Categories and Specific Uses", by specifying that a Medical marijuana dispensary is an allowable use with a Dispensary Use Permit in the General Urban GU), Urban Center (UC), and Downtown Core ( DC) zoning districts, and replacing the reference to section 5702 in the column entitled "Additional Zoning Requirements by Code Section" with references to Section 5703 and Section 5707.
19
SECTION 3
Section 9254 in Article 19, Chapter 2 in Division 9 of the Ukiah City Code is hereby amended to read as follows ( unchanged text is omitted and is shown by 9254 MARIJUANA CULTIVATION
B. Cultivation of Marijuana:
2. Indoor Cultivation: Except as permitted in Chapter 8 in Division 6 of this Code, it is hereby declared to be unlawful and a public nuisance for any person owning, leasing, occupying, or having charge or possession of any parcel within any residential zoning district (R- 1, R- 2, R-3 and CN districts) in the city of Ukiah to cause or allow such parcel to be used for the cultivation of more than twelve ( 12) mature and twenty four ( 24) immature marijuana plants within a fully enclosed and secure structure on the parcel.
3. Indoor Cultivation Of Marijuana Restricted To Qualified Patients And Primary Caregivers: It is hereby declared to be unlawful and a public nuisance for any person owning, leasing, occupying, or having charge or possession of any parcel within the city of Ukiah to cause or allow such parcel to be used for the cultivation of marijuana, unless ( a) the person is a qualified patient or primary caregiver, growing the amount of marijuana per qualified patient authorized by Health and Safety Code section 11362.77(a) — (b) and ( d) — (f), not to exceed the per parcel limit in subsection B2 of this Section, or (b) the person is operating a Medical Marijuana Dispensary pursuant to a valid Dispensary Use Permit, within the C1, C2, CN, M, and PD ( Commercial) zoning districts and in the GU, UC, and DC downtown zoning districts, and the space devoted to on-site cultivation at the permitted Dispensary does not exceed twenty-five percent of the total floor area, but in no case more than five hundred square feet.
SECTION 4.
1. SEVERABILITY.
If any section, subsection, subdivision, paragraph, sentence, clause or phrase of this Ordinance, or its application to any person or circumstance, is for any reason held to be invalid or unenforceable, such invalidity or unenforceability shall not affect the validity or enforceability of the remaining sections, subsections, subdivisions, paragraphs, sentences, clauses or phrases of this Ordinance, or its application to any other person or circumstance. The City Council of the City of Ukiah hereby declares that it would have adopted each section, subsection, subdivision, paragraph, sentence, clause or phrase hereof, irrespective of the fact that any one or more other sections, subsections, subdivisions, paragraphs, sentences, clauses or phrases hereof be declared invalid or unenforceable.
2. EFFECTIVE DATE.
This Ordinance shall be published as required by law in a newspaper of general circulation in the City of Ukiah, and shall become effective thirty (30) days after its adoption. 20
Introduced by title only on January 18, 2017, by the following roll call vote:
AYES: Councilmembers Scalmanini, Mulheren, Doble, and Mayor Brown NOES: None
ABSENT: Councilmember Crane
ABSTAIN: None
Adopted on February 15, 2017, by the following roll call vote:
AYES- Councilmembers Scalmanini, Crane, Mulheren, Doble, and Mayor Brown NOES: None
ABSENT: None
ABSTAIN: None
a
Ji . Brown, Mayor
ATTEST:
7Lkw
ci
I -
c r
Kristine L ler, City Clerk
21
1 ORDINANCE NO. 1182
ORDINANCE OF THE CITY COUNCIL OF THE CITY OF UKIAH AMENDING VARIOUS
SECTIONS OF THE UKIAH CITY CODE REGULATING MEDICAL MARIJUANA DISPENSARIES.
The City Council of the City of Ukiah hereby ordains as follows:
SECTION 1
Chapter 8 in Division 6 of the Ukiah City Code is hereby amended to read as follows unchanged text is omitted and is shown by "* * *"):
5701 INTERPRETATION AND APPLICABILITY.
E) Nothing in this Chapter is intended, nor shall it be construed, to allow or permit any commercial cannabis activity", as defined in Business and Professions Code § 26001( k), or any commercial or non- commercial activity involving marijuana use for recreational or other non- medical purposes that is not otherwise authorized in the Ukiah City Code. 5702 DEFINITIONS.
D) " Delivery" shall have the same definition as set forth in California Business and Professions Code § 26001, and as it may be amended.
H) " Medical Marijuana Dispensary" or " Dispensary" means a " Dispensary" as defined in California Business and Professions Code § 26001, as it now reads or may be amended in the future.
5708 OPERATING REQUIREMENTS.
Dispensary operations shall be established and managed only in compliance with the following standards:
A) Criminal History. Any applicant, his or her agent or employees, volunteer workers, or any person exercising managerial authority of a Dispensary on behalf of the applicant shall not have been convicted of any of the felony offenses enumerated in Business and Professions Code § 26057( b)( 4), or of a felony or misdemeanor involving moral turpitude, or on probation for a drug offense, or engaged in misconduct related to the qualifications, functions or duties of a permittee. Notwithstanding the above, an application shall not be denied solely on the basis that the applicant or any Manager has been convicted of a felony, if the person convicted has obtained a certificate of rehabilitation expungement of felony record) under California law or under a similar federal statute or state law where the expungement was granted. In addition, notwithstanding the above, a prior conviction, where the sentence, including any term of probation, incarceration, or supervised release, is completed, for possession of, possession for sale, sale, manufacture, transportation, or cultivation of cannabis or cannabinoid preparations is not considered related to the qualifications, functions, or duties of a permittee, and shall not be the sole 1
ground for denial of an application.
D. ***
a. A currently valid physician' s approval or recommendation in compliance with the criteria in California Health and Safety Code Division 10, Chapter 6, Article 2. 5 and as it may be amended, and valid official identification, such as a Department of Motor Vehicles driver's license or State Identification Card; or
G. Retail Sales and Cultivation:
1. No cannabis shall be cultivated on the premises of the dispensary, except in compliance with this chapter and with sections 6093 and 9254 of this code and applicable state laws and regulations.
5. A dispensary shall meet all the operating criteria for the dispensing of medical marijuana as is required pursuant to applicable state laws and regulations.
H. Operating Plans:
7. Security Video Retention: Security video shall be maintained for ninety (90) days.
In the event of a crime onsite or anywhere within range of the Dispensary' s security cameras, the Dispensary shall provide the Chief of Police with a useable digital copy of the security video upon request or at the earliest convenience.
U) Inspections. During normal business hours, Dispensaries permitted under this Chapter shall provide access for administrative inspections by City officials or officers or consultants hired by the City to verify compliance with this Chapter. Any Dispensary' s refusal to comply with this Section shall be deemed a violation of this Chapter. 5710 CRITERIA FOR REVIEW.
In addition to the findings required in City Code § 9262, the Planning Commission shall consider the following criteria in determining whether to grant or deny a Dispensary Use Permit, and the Zoning Administrator shall consider the following criteria in determining whether to grant or deny renewals of a Dispensary Use Permit:
Q) That adequate parking will be provided at a rate of one space for every 200 gross square feet of retail space, office space, and similar floor areas, pursuant to City Code 9198( F)( 1). However, if the Dispensary to be operated by the applicant does not dispense medical marijuana to patients on- site but services qualified patients through deliveries in compliance with City Code § 5717, then adequate parking will be provided at a rate of one space for every four hundred ( 400) square feet of gross leasable space, pursuant to City 2 1
1
Code § 9198( G)( 3).
SECTION 2.
1. SEVERABILITY.
If any section, subsection, subdivision, paragraph, sentence, clause or phrase of this Ordinance, or its application to any person or circumstance, is for any reason held to be invalid or unenforceable, such invalidity or unenforceability shall not affect the validity or enforceability of the remaining sections, subsections, subdivisions, paragraphs, sentences, clauses or phrases o f this Ordinance, or its application to any other person or circumstance.
The City Council of the City of Ukiah hereby declares it would have adopted each section, subsection, subdivision, paragraph, sentence, clause or phrase hereof, irrespective of the fact that any one or more other sections, subsections, subdivisions, paragraphs, sentences, clauses or phrases hereof be declared invalid or unenforceable.
2. EFFECTIVE DATE.
This Ordinance shall be published as required by law in a newspaper of general circulation in the City of Ukiah, and shall become effective thirty (30) days after its adoption.
Introduced by title only on October 18, 2017, by the following roll call vote:
AYES: Councilmembers Scalmanini, Crane, Mulheren, Doble, and Mayor Brown NOES: None
ABSENT: None
ABSTAIN: None
Adopted on November 1, 2017, by the following roll call vote:
AYES: Councilmembers Scalmanini, Crane, Mulheren, Doble, and Mayor Brown NOES: None
ABSENT: None
ABSTAIN: None
O. Brown, Mayor
it
ATTEST:
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rpt , oc
Kristine Laller, City Clerk
3
Agenda Item No: 13.a.
MEETING DATE/TIME: 2/2/2022
ITEM NO: 2022-1213
AGENDA SUMMARY REPORT
SUBJECT: Seeking Direction from Council Regarding Updates to the Municipal Codes Regulating City Parks.
DEPARTMENT: Community Services PREPARED BY: Neil Davis, Community Services Administrator PRESENTER: Neil Davis, Community Services Director
ATTACHMENTS:
1. Table of Changes
2. Parks Code Update
Summary: Staff will present a report on a wide variety of minor but important updates to the City Codes regulating Parks and Recreation Facilities (Div. 1 Chapter 12).
Background: Division 1 Chapter 12 to the City’s Code covers “Parks and Recreation Facilities." Over forty codes cover a wide variety of allowed, forbidden, and permitted activities. The vast majority of these codes were adopted in 1982 and few have been updated since their adoption. Prudent management practices require a periodic review of these codes to consider potentially beneficial additions, amendments, or deletions of codes as may be deemed necessary. The Community Services team reviewed existing Parks and Recreation Facilities codes, and after consultation with Police, Planning, and the City Manager’s office, identified a number of codes Council may consider for updates.
Discussion: To facilitate this review, a table has been created and is included as Attachment 1 with headings for the Code Section Number, Current Code, and the suggested edits to the Code. The following discussion provides a brief rationale for suggested changes and can be cross referenced to the table in Attachment 1 to allow the reader to see the exact suggested change.
Section 1965 lists facilities that have been designated as City Parks. Bullet point C of Section 1965 describing Carpenter Park has an incomplete and inaccurate description of the property and merits a correction. Bullet Point N of section 1965 specifies City View Trail as a Park. The designation of a trail as a park, as opposed to the property being designated as a Park, reflects the current zoning of the property. The Planning Team plans to update this with the General Plan update. In the meantime, this is somewhat problematic as construction of an additional trail above City View trail is under consideration. Should this trail be built, park rules will not cover it. A simple change in language from City View trail to City View Trails would address this problem.
Additionally, staff recommends adding the designation of “park” to the property on the 800 block of N Oak St that is currently home to the Garden’s Project Veterans Garden, as well as a trail and native plant landscaping along Orr Creek. Naming it “Orr Creek Greenway Park” would be descriptive and open the door for the Greenway to be expanded as new sections of Greenway are added.
Sections 1966 and 1971 address park hours and allowed parking hours. Park hours and Parking Lot hours are inconsistent, with Parks being opened before parking is allowed. Park hours are currently set at 6AM to 10PM.
Although these hours are appropriate for the summer, in the winter this means the park is open for hours after dark. Many communities address this problem by designating park hours as “Dawn to Dusk.” Section 1972 regulates the use of bicycles. Current code makes it illegal to ride a bicycle on any surface other than asphalt or concrete. This prohibits the riding of bicycles at Riverside Park and would preclude the use of
bikes on trails that are planned at the site of the old landfill site. There are a number of other small connecting paths commonly used by bicyclists around the City. Allowing access to these paths removes a barrier to healthy and safe transportation.
Section 1992 allows for the permitting of exclusive use of City Parks and Recreation Facilities. Since the last code update, the use of generators and bouncy houses has become increasingly common, and their cost has gone down. The generators create a noise disturbance to neighbors and the bounce houses take a significant amount of room. Allowing people to set up bounce houses “at will” effectively closes the area to other users.
When multiple bounce houses are set up, large sections of the park are closed to the general public. Although these activities have benefits, the general public may be better served with some limitations, through permitting, on the frequency and duration of their use. Staff have also noted an increase in unapproved and potentially detrimental entrepreneurial activities in parks. Again, there may at times be benefits to these activities if approved through a permitting process.
Section 2000.1 governs activities and Alex Thomas Plaza, including the unenforced restrictions on “nonmotorized conveyances.” Citizens using non-motorized forms of transportation frequently use the paths across the Park as a convenient car-free (safe) connector. This use has not been noted to cause problems. In the case of overly rambunctious recreational users, other codes, including codes that outlaw creating a public nuisance, can be used to curtail the activity.
Existing code (Section 200.1) requires the restrooms to be open from “6:00 AM to dusk or later as determined by the City Manager.” Parks and Facilities staff work to keep the restrooms open as is feasible, typically from 10AM to 6PM. It is frequently unfeasible for staff to comply with specific times. Staff is committed to keeping the restrooms open as much as feasible, but is better served by code that allows them the necessary flexibility.
Section 2000.4 provides regulations for the use of the Great Redwood Trail. The current code addresses the allowed uses of “small electric transport devices such as electric bicycles, electric scooters, segways, and electric skateboards.” Existing State law covers the use of these conveyances on this type of trail. Trail users are more likely to be aware of and follow existing, known State guidelines. Providing City of Ukiah regulations that are inconsistent with State regulations leads to confusion and decreases enforceability.
The addition of Section 2000.5 would provide specific regulations for the Grace Hudson Museum. The unique nature of the museum and interpretive gardens (The Wild Gardens and Ts’iwish Wetlands) have unique visitation and parking needs. The suggested changes to parking hours at this site are endorsed by Museum Director David Burton.
Although none of the outlined changes are imperative, the City will be well served with these practical updates. With direction and approval from Council, Staff will draft an amended ordinance to be presented for adoption by the Council.
The PowerPoint presentation is Attachment 2.
Recommended Action: Provide Staff direction to update City Codes regulating City Parks.
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: Police Department, Community Development Department, City Manager's Department
Attachment 1
Parks and Facilities Proposed Code Updates
Code Number Current Code Suggested Edit to Code
1965 - Facilities C. Carpenter Park: Bounded by
Clay Street and Main Street;
C. Carpenter Park The property
surrounding Grace Hudson
Museum Bounded by the
Sunhouse Senior Apartments, the
Great Redwood Trail, Main St,
and Mill St including the Wild
Gardens, the Sunhouse Residence
and Garden, the Ts’Wish
Wetlands, the Parking Area and
the East/West public access trail.
1965 - Facilities N. City View Trail; Situated on
the city owned property above
the Ukiah municipal golf course
in the lower western hills. The
1.5 mile looped trail begins and
ends at a point in Low Gap
Regional Park;
N. City View Trails; Situated on
the city owned property above
the Ukiah municipal golf course in
the lower western hills. The trail
loops begin and end in Low Gap
Regional Park;
1965 - Facilities Add; S. Orr Creek Greenway Park
situated between N Oak St and
Bush Street.
Add T. Orr Creek Commons Park
situated between N. Orchard and
Orr St.
1966 – Hours of Use “…shall be open to the public
every day of the year from six
o’clock (6:00) A.M. to ten o’clock
(10:00) P.M….”
“…shall be open to the public
every day of the year from dawn
to dusk….”
1971 - Parking “…between the hours of ten
o’clock (10:00) P.M. and seven
o’clock (7:00) A.M.”
“…from dawn to dusk….”
1972 - Bicycles It shall be unlawful for any
person to ride a bicycle on any
surface not paved with either
asphalt or concrete, or which are
otherwise designated off limits
to bicycles. Bicycles shall at all
times be operated with
reasonable regard to the safety
of others in compliance with
bicycle safety laws. In no event
shall the maximum speed of a
Bicycles shall at all times be
operated with reasonable regard
to the safety of others in
compliance with State and local
bicycle safety laws.
Attachment 1
bicycle exceed ten (10) miles per
hour within a park facility.
1985 Amplifiers * See below for redlined text. Add: “It shall be unlawful to create noise, music,
announcements or other sounds
(with or without amplification)
that can be heard outside the
park without a permit.”
1992 – Permit for the
Exclusive Use of City Park and
Recreation Facilities
“The application form for a
permit for the exclusive use of
recreational facilities may be
obtained…”
“The application form for a
permit for the exclusive use of all
or part of recreational facilities
may be obtained…”
1992 – Permit for the
Exclusive Use of City Park and
Recreation Facilities
(Additional Language)
The following are prohibited in
absence of a permit. 1) Structures
including stages, tents, tables,
bounce houses, etc, 2) portable
generators or the use of electrical
hook ups,3) conducting sales of
any kind or to exchange tickets
for merchandise, 4) for profit or
non-profit fundraising of any
kind.
2000.1 - Alex Thomas Plaza A. No person shall use a
bicycle, skateboard, rollerblade,
roller skate or nonmotorized
conveyance in the plaza. Bicycles
may be parked in racks provided
by the city for this purpose.
Delete this as generally
unenforceable. Police can use
Code 1986 “Annoying, Disorderly,
Indecent Conduct” if needed.
2000.1 - Alex Thomas Plaza F. Plaza restrooms shall be open to the public from six o’clock
(6:00) A.M. to dusk or later as
determined by the city manager.
F. Plaza restrooms should be
open to the public as much as is
feasible and safe at the discretion
of the Facilities Administrator and
/ or the Director of Community
Services.
2000.4 – Great Redwood Trail
Park
F. No person shall permit a
motor vehicle under his or her
ownership or control to enter
upon or remain in the Great
Redwood Trail park. However,
small electric transport devices
such as electric bicycles, electric
scooters, Segways, and electric
skateboards are allowed within
designated trail areas; provided,
that they are operated at speeds
F. No person shall permit a
motor vehicle under his or her
ownership or control to enter
upon or remain in the Great
Redwood Trail park. However,
small electric transport devices
may be used as allowable by CA
State law regarding Class I Bike
Paths.
Attachment 1
not exceeding ten (10) miles per
hour.
2000.5 (New) – Carpenter
Park
None Notwithstanding any other
provisions of this code to the
contrary, all persons or
organizations using Carpenter
Park shall comply with the
following:
A. The Ts’iwish Wetlands and
parking lot are open from 7AM to
10PM.
B. No person shall park a vehicle
on Carpenter Park grounds
between the hours of ten o’clock
(10:00) P.M. and seven o’clock
(7:00) A.M. except with written
permission of the Museum
Director, the Director of
Community Services, or the City
Manager, or as otherwise posted.
1985 Amplifiers (Full Text)
* The noise ordinance of the city shall be effective in city parks and other city owned outdoor facilities unless a permit has been obtained or the park is being used by the city for a city sponsored event. It shall be unlawful to create noise, music, announcements or other sounds (with or without amplification) that can be heard outside the park without a permit. The city manager or the director of community services shall have the authority to issue the permit described herein and to establish policies for city sponsored events. Any person failing to abide by conditions of such permit may have the permit summarily revoked by a police officer or other duly authorized city representative. (Ord. 786, §1, adopted 1982; Ord. 1062, §2, adopted 2005)
Parks and Facilities
Proposed Code Updates
Neil Davis – Director, Community Services
ATTACHMENT 2
1965 - Facilities
Code Number Current Code Suggested Edit to Code1965 - Facilities C. Carpenter Park:
Bounded by Clay Street and Main Street;
C. Carpenter Park The property surrounding Grace Hudson Museum Bounded by the Sunhouse Senior Apartments, the Great Redwood Trail, Main St, and Mill St including the Wild Gardens, the SunhouseResidence and Garden, the Ts’Wish Wetlands, the Parking Area and the East/West public access trail.
1965 - Facilities
Code Number Current Code Suggested Edit to Code1965 - Facilities N. City View Trail; Situated on the city owned property above the Ukiah municipal golf course in the lower western hills. The 1.5 mile looped trail begins and ends at a point in Low Gap Regional Park N. City View Trails; Situated on the city owned property above the Ukiah municipal golf course in the lower western hills. The trail loops begin and end in Low Gap Regional Park; .
1965 - Facilities
Code Number Current Code Suggested Edit to Code1965 - Facilities None Add; S. Orr Creek Greenway Park situated between N Oak St and Bush Street. Add T. Orr Creek Commons Park situated between N. Orchard and Orr St.
1965 - Facilities
Code Number Current Code Suggested Edit to Code1966 – Hours of Use “…shall be open to the public every day of the year from six o’clock (6:00) A.M. to ten o’clock (10:00) P.M….” “…shall be open to the public every day of the year from dawn to dusk….”
1971 - Parking
Code Number Current Code Suggested Edit to Code1971 - Parking “…between the hours of ten o’clock (10:00) P.M. and seven o’clock (7:00) A.M.” “…between the hours of ten o’clock (10:00) P.M. and seven o’clock (7:00) A.M.”
1965 - Facilities
Code Number Current Code Suggested Edit to Code1972 - Bicycles It shall be unlawful for any person to ride a bicycle on any surface not paved with either asphalt or concrete, or which are otherwise designated off limits to bicycles. Bicycles shall at all times be operated with reasonable regard to the safety of others in compliance with bicycle safety laws. In no event shall the maximum speed of a bicycle exceed ten (10) miles per hour within a park facility.
Bicycles shall at all times be operated with reasonable regard to the safety of others in compliance with State and local bicycle safety laws.
1965 - Facilities
Code Number Current Code Suggested Edit to Code
1985 Amplifiers (Full Text)* The noise ordinance of the city shall be effective in city parks and other city owned outdoor facilities unless a permit has been obtained or the park is being used by the city for a city sponsored event. It shall be unlawful to create noise, music, announcements or other sounds (with or without amplification) that can be heard outside the park without a permit. The city manager or the director of community services shall have the authority to issue the permit described herein and to establish policies for city sponsored events. Any person failing to abide by conditions of such permit may have the permit summarily revoked by a police officer or other duly authorized city representative. (Ord. 786, §1, adopted 1982; Ord. 1062, §2, adopted 2005)
1992 - Permitting
Code Number Current Code Suggested Edit to Code1992 – Permit for the Exclusive Use of City Park and Recreation Facilities “The application form for a permit for the exclusive use of recreational facilities may be obtained…” “The application form for a permit for the exclusive use of all or part of recreational facilities may be obtained…”
1992 - Permitting
Code Number Current Code Suggested Edit to Code1992 – Permit for the Exclusive Use of City Park and Recreation Facilities (Additional Language)The following are prohibited in absence of a permit. 1) Structures including stages, tents, tables, bounce houses, etc, 2) portable generators or the use of electrical hook ups,3) conducting sales of any kind or to exchange tickets for merchandise, 4) for profit or non-profit fundraising of any kind.
2000.1 – Alex Thomas Plaza
Code Number Current Code Suggested Edit to Code2000.1 - Alex Thomas Plaza A. No person shall use a bicycle, skateboard, rollerblade, roller skate or nonmotorized conveyance in the plaza. Bicycles may be parked in racks provided by the city for this purpose.
Delete this as generally unenforceable. Police can use Code 1986 “Annoying, Disorderly, Indecent Conduct” if needed.
2000.1 – Alex Thomas Plaza
Code Number Current Code Suggested Edit to Code2000.1 - Alex Thomas Plaza F. Plaza restrooms shall be open to the public from six o’clock (6:00) A.M. to dusk or later as determined by the city manager.
F. Plaza restrooms should be open to the public as much as is feasible and safe at the discretion of the Facilities Administrator and / or the Director of Community Services.
2000.4 – Great Redwood Trail
Code Number Current Code Suggested Edit to Code2000.4 – Great Redwood Trail Park F. No person shall permit a motor vehicle under his or her ownership or control to enter upon or remain in the Great Redwood Trail park. However, small electric transport devices such as electric bicycles, electric scooters, Segways, and electric skateboards are allowed within designated trail areas; provided, that they are operated at speeds not exceeding ten (10) miles per hour.
F. No person shall permit a motor vehicle under his or her ownership or control to enter upon or remain in the Great Redwood Trail park. However, small electric transport devices may be used as allowable by CA State law regarding Class I Bike Paths.
2000.5 – Carpenter Park
Code Number Current Code Suggested Edit to Code2000.5 (New) –Carpenter Park None. Notwithstanding any other provisions of
this code to the contrary, all persons or organizations using Carpenter Park shall comply with the following:A. The Ts’iwish Wetlands and parking lot are open from 7AM to 10PM.B. No person shall park a vehicle on Carpenter Park grounds between the hours of ten o’clock (10:00) P.M. and seven o’clock (7:00) A.M. except with written permission of the Museum Director, the Director of Community Services, or the City Manager, or as otherwise posted.
Questions?
Agenda Item No: 13.b.
MEETING DATE/TIME: 2/2/2022
ITEM NO: 2022-1247
AGENDA SUMMARY REPORT
SUBJECT: Discuss and Provide Direction for the Establishment of an Oversight Committee, with Possible Appointments, to Review Measure P Expenditures for Fiscal Years 2019 and 2020 per Resolution 2014-28.
DEPARTMENT: Police PREPARED BY: Noble Waidelich, Chief
PRESENTER: Noble Waidelich, Chief of Police
ATTACHMENTS:
1. Resolution 2014-28
Summary: Council will discuss and provide direction for the establishment of an Oversight Committee, with possible appointments, to review Measure P expenditures for fiscal years 2019 and 2020 per resolution 2014-
28. Background: During the summer of 2014, the City of Ukiah began the effort to renew Measure S which was due to sunset, and was ultimately replaced with Measure P. During this process, the City Council unanimously approved resolution 2014-28 (Attachment #1) which established an expenditure plan for public safety and an Oversight Board to review and report on the performance of the public safety spending plan, to include expenditures of Measure P revenues, every other year. Since the passage of Measure P, the City has enhanced its reporting practice and produces a Measure P report with each annual operating budget and audited financial statements. Although this information has been publicly reported by the City annually, it is overdue in appointing a new Measure P Oversight Committee and completing the biannual review consistent with the original resolution.
Discussion: The process for the review of Fiscal Years 2019 and 2020 would normally occur after the completion of the second Fiscal Year and was delayed due to the effects of the pandemic on operations. To efficiently and effectively complete this review, one option for City Council would be to appoint members of the public from prior committees to complete this review, with the alternative option being for City Council to provide direction to staff to seek out new community applicants for the next committee.
In preparation for both options, staff contacted the community members from previous Measure P Oversight committees, to include Edward Eversole, Roe Sandelin, and Larry Olson to inquire about their interest or ability to engage in this cycle of oversight. Edward Eversole, Larry Olson and Roe Sandelin affirmed they would be willing to participate in this year's review. Resolution 2014-28 states that the committee will be comprised of persons appointed to the committee who should represent a broad range of interests, such as business owners, ethnic minorities, (1) Ukiah City Firefighter, (1) Ukiah City Peace Officer, homeowners and tenants. Staff also identified Max Brazill as representing the Ukiah Police Department and Tony Selvitella as representing the Ukiah Valley Fire Authority.
Recommended Action: Approve the establishment of an Oversight Committee to review Measure P expenditures for the fiscal years 2019 and 2020; and appoint Edward Eversole, Larry Olson and Roe Sandelin as persons representing members at large; Max Brazill representing the Ukiah Police Department; and Tony Selvitella representing the Ukiah Valley Fire Authority to the Measure P Oversight Committee.
BUDGET AMENDMENT REQUIRED: None
CURRENT BUDGET AMOUNT: None
PROPOSED BUDGET AMOUNT: N/A
FINANCING SOURCE: N/A
PREVIOUS CONTRACT/PURCHASE ORDER NO.: N/A
COORDINATED WITH: Sage Sangiacomo, City Manager; Dan Buffalo, Finance Director: Douglas Hutchison, Fire Chief
Agenda Item No: 13.c.
MEETING DATE/TIME: 2/2/2022
ITEM NO: 2022-1267
AGENDA SUMMARY REPORT
SUBJECT: Receive Updates on City Council Committee and Ad Hoc Assignments, and, if Necessary, Consider Modifications to Assignments and/or the Creation/Elimination of Ad Hoc(s).
DEPARTMENT: City Clerk PREPARED BY: Kristine Lawler, City Clerk PRESENTER: Mayor Brown and Various Councilmembers
ATTACHMENTS:
1. 2022 City Council Special Assignments
Summary: City Council members will provide reports and updates on their committee and ad hoc assignments. If necessary, the Council may consider modifications.
Background: City Council members are assigned to a number of committees and ad hoc activities. These assignments are included as Attachment 1.
Discussion: Previously, the City Council discussed having more time allocated to reporting on committee and ad hoc activities. Often, the Council Reports section of the regular agenda is rushed due to impending business (i.e., public hearings), and not enough time is afforded for reports beyond community activities.
In an effort to foster regular updates on committee and ad hoc assignments, this item is being placed on the agenda to provide the City Council members an expanded opportunity to report on assignments and modify assignments as necessary.
Recommended Action: Receive report(s). The Council will consider modifications to committee and ad hoc assignments along with the creation/elimination ad hoc(s).
BUDGET AMENDMENT REQUIRED: No
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
2022 CITY COUNCIL SPECIAL ASSIGNMENTS
COUNTY/REGIONAL
OnGoing One + Alternate MTG DATE/TIME MEETING LOCATION MAILING ADDRESS/CONTACT COMMITTEE FUNCTION ASSIGNED TO PRINCIPAL STAFF SUPPORT Disaster Council
Shall meet a
minimum of once a
year at a time and
place designated
upon call of the chair
Place designated upon call of the chair or, if she/he is unavailable or unable to call such meeting, the first vice chair and then the City Manager or her/his designee.
Office of Emergency Management 300 Seminary Ave. Ukiah, CA 95482467-5765 - Tami Bartolomei Develop any necessary emergency and mutual aid plans, agreements, ordinances, resolutions, rules, and regulations.
OrozcoDuenas- Alternate
Tami Bartolomei, Office of Emergency Management Coordinator; 467-5765 [email protected] Greater Ukiah Business & Tourism Alliance
3rd Tuesday of month, 11:30 a.m.
200 S School St.Ukiah, CA 95482
200 S School St.Ukiah, CA 95482
Promotes tourism and works to strengthen and promote the historic downtown and businesses within the greater Ukiah area DuenasRodin - Alternate
Shannon Riley, Deputy City Manager; 467-5793 [email protected] Mendocino Council of Governments (MCOG)
1st Monday of month, 1:30 p.m.
Board of Supervisors Chambers
501 Low Gap RoadUkiah, CA
Executive Director367 N. State Street, Ste. 206 Ukiah, CA 95482463-1859 Plan and allocate State funding, transportation, infrastructure and project County wide BrownRodin- Alternate
Tim Eriksen, Public Works Director/City Engineer; 463-6280 [email protected]
Mendocino County Inland Water and Power Commission (IWPC) 2nd Thursday of month, 6:00 p.m.
Civic Center300 Seminary Avenueconference room 5
IWPC Staff P.O. Box 1247Ukiah, CA 95482391-7574 - Candace Horsley Develops coordination for water resources and current water rights: Potter Valley project - Eel River Diversion OrozcoBrown- Alternate
Sean White, Director of Water Resources; 463-5712 [email protected] Mendocino Solid Waste Management Authority (MSWMA)
3rd Thursday of every other month (varies), 10:00 a.m.
Willits Council Chambers
Solid Waste Director3200 Taylor DriveUkiah, CA 95482468-9710 County-wide Solid Waste JPA Brown Duenas- Alternate Tim Eriksen, Public Works Director/City Engineer; 463-6280 [email protected] Mendocino Transit Authority (MTA) Board of Directors
Last Wednesday of month, 1:30 p.m.
Alternating locations - Ukiah Conference Center or Fort Bragg, or Point Arena Executive Director241 Plant RoadUkiah, CA 95482462-1422 County-wide bus transportation issues and funding Duenas Orozco - Alternate Tim Eriksen, Public Works Director/City Engineer; 463-6280 [email protected] North Coast Opportunities (NCO) 4th Wednesday of month, 2 p.m. Alternating locations - Ukiah and Lakeport Ross Walker, Governing Board
Chair
North Coast Opportunities413 North State StreetUkiah, CA 95482 Assist low income and disadvantaged people to become self reliant Bartolomei(appointed 12/19/18)
Tami Bartolomei, Community Services Administrator; 467-5765 [email protected]
North Coast Rail Authority (NCRA) 2nd Wednesday of month, 10:30 a.m. Various Locations - announced 419 Talmage Road, Suite M Ukiah, CA 95482 463-3280 Provides a unified and revitalized rail infrastructure meeting the freight and passenger needs of the region Shannon Riley, Deputy City Manager Shannon Riley, Deputy City Manager; 467-5793 [email protected] River Watershed Association (RRWA) 4th Thursday of month, 9:00 a.m. (only 5 times a year)
Windsor Town Hall
Russian River Watershed Association Attn: Daria Isupov425 South Main St., Sebastopol, CA 95472508-3670 Consider issues related to Russian river - plans projects and funding requests RodinBrown- Alternate
Tim Eriksen, Public Works Director/City Engineer; 463-6280 [email protected] Ukiah Valley Basin Groundwater Sustainability Agency (GSA) 2nd Thursday of month, 1:30 p.m.
Board of Supervisors Chambers;
501 Low Gap Road
Ukiah, CA
County Executive OfficeNicole French501 Low Gap Rd., Rm. 1010Ukiah, CA 95482463-4441 GSA serves as the Groundwater Sustainability Agency in the Ukiah Valley basin CraneDuenas- Alternate
Sean White, Director of Water Resources; 463-5712 [email protected]
COUNTY/REGIONAL
One + Staff Alternate MTG DATE/TIME MEETING LOCATION MAILING ADDRESS/CONTACT COMMITTEE FUNCTION ASSIGNED TO PRINCIPAL STAFF SUPPORT Economic Development & Financing Corporation (EDFC)
2nd Thursday of month, 2:00 p.m.
Primarily 631 S. Orchard Street (location varies)
Executive Director631 South Orchard AvenueUkiah, CA 95482467-5953 Multi-agency co-op for economic development and business loan program Riley(appointed 12/19/18)
Shannon Riley, Deputy City Manager; 467-5793 [email protected] Sun House Guild ex officio 2nd Tuesday of month, 4:30 p.m. Sun House 431 S. Main St. Ukiah, CA 431 S. Main Street Ukiah, CA 95482 467-2836 Support and expand Grace Hudson Museum Orozco Neil Davis- Alternate David Burton, Museum Director; 467-2836 [email protected] Continued -
COUNTY/REGIONAL
One + Staff Alternate
MTG DATE/TIME MEETING LOCATION MAILING ADDRESS/CONTACT COMMITTEE FUNCTION ASSIGNED TO PRINCIPAL STAFF SUPPORT Mendocino Youth Project JPA Board of Directors
3rd Wednesday of month, 7:45 a.m.
776 S. State Street Conference Room
Mendocino Co. Youth Project776 S. State Street, Ste. 107Ukiah, CA 95482 707-463-4915 Targets all youth with a focus on drug and alcohol prevention, healthy alternatives and empowering youth to make healthy choices Cedric Crook, Patrol Lieutenant
Cedric Crook, Patrol Lieutenant Nob; 463-6771; [email protected] Northern California Power Agency (NCPA) - Commission
4th Thursday of month, 9:00 a.m. (see NCPA calendar)
Roseville, CAand other locations
651 Commerce Drive Roseville, CA 95678916-781-4202
Pool of State and local power utilities developing and operating power generation, providing scheduling and related energy services and providing regulatory and legislative support.
Crane - Commissioner Sauers - Alternate and
Commissioner in absence of Commissioner Crane
Cindi Sauers - Electric Utility Director; 463-6286 [email protected] Northern California Power Agency (NCPA) – Lodi Energy Center (LEC) Appointment 2nd Monday of month, 10:00 AM Lodi, CA and other locations 651 Commerce DriveRoseville, CA 95678916-781-4299
Committee oversees the operation, maintenance and expenditures of the LEC 300 MW generating project.
Sauers – Project Participate Appointee
Cindy Sauers, Electric Utility Director, 463‐6286, [email protected] 1 1/20/2022
ATTACHMENT 1
2022 CITY COUNCIL SPECIAL ASSIGNMENTS
LOCAL/COUNTY/REGIONAL/LIASONS OnGoing One or Two Council and/or Staff
MTG DATE/TIME LOCATION MAILING ADDRESS/CONTACT COMMITTEE FUNCTION ASSIGNED TO PRINCIPAL STAFF SUPPORT League of California Cities Redwood Empire Legislative Committee Prior to Division Meetings, meets 3x in person and then via conference call Various locations that are announced
Redwood Empire League President; Public Affairs Program Manager (916) 658-8243 Elected city officials and professional city staff attend division meetings throughout the year to share what they are doing and advocate for their interests in Sacramento Rodin Orozco-Alternate
Sage Sangiacomo, City Manager; 463-6221 [email protected] City Selection Committee
Called as required by the Clerk of the Board
BOS Conference Room 501 Low Gap Rd. Rm. 1090 Ukiah, CA
C/O: BOS501 Low Gap Rd., Rm 1090 Ukiah, CA 95482463-4441 Makes appointments to LAFCO and Airport Land Use Commission Mayor Kristine Lawler, City Clerk; 463-6217 [email protected] Investment Oversight Committee Varies
Civic Center 300 Seminary Ave. Ukiah, CA 95482
Civic Center300 Seminary Ave.Ukiah, CA 95482
Reviews City investments, policies, and strategies
CraneOrozco, Alternate
Alan Carter, Treasurer
Dan Buffalo, Director of Finance; 463-6220 [email protected] Library Advisory Board
3rd Wednesdays of alternate months; 1:00 p.m.
Various Mendocino County Libraries
Ukiah County Library463-4491 Review library policy and activities Supervisor Mulheren Kristine Lawler, City Clerk; 463-6217; [email protected] Ukiah Players Theater Board of Directors
3rd Tuesday of month, 6:00 p.m
1041 Low Gap Rd Ukiah, CA 95482 462-1210
1041 Low Gap RdUkiah, CA 95482462-1210
To oversee the activities, organization and purpose of the Ukiah Players Theater Greg Owen, Airport
Manager
(appointed 12/19/18)
Kristine Lawler, City Clerk; 463-6217 [email protected] Ukiah Unified School District (UUSD) Committee Quarterly 511 S. Orchard, Ste. D Ukiah, CA 95482 511 S. Orchard Ukiah, CA 95482 Information exchange with UUSD Board Chair, Mayor, Superintendent, and City Manager Mayor, City Manager and Police Chief Sage Sangiacomo, City Manager; 463-6221 [email protected] Russian River Flood Control District (RRFCD) Liaison
1st Monday of month, 5:30 p.m.
151 Laws Ave.,Suite D Ukiah, CA
151 Laws Ave., Ukiah, CA 95482; [email protected]; 462-5278 Proactively manage the water resources of the upper Russian River for the benefit of the people and environment of Mendocino County White/Orozco Sean White, Director of Water Resources; 463-5712 [email protected] Mendocino County Local Area Formation Commission (LAFCO) 1st Monday of month, 9:00 a.m. Board of Supervisors Chambers Executive Director200 S. School Street, Ste. 2 Ukiah, CA 95482463-4470 Required by legislation - planning spheres of influence, annexation, service areas, and special districts (positions not active)Crane Rodin
Craig Schlatter, Director of Community Development; 463-6219; [email protected] Mendocino County Airport Land Use Commission As needed
BOS Conference Room 501 Low Gap Rd., Rm. 1090, Ukiah, CA Mendocino County Executive Office 501 Low Gap Rd. Rm. 1010 Ukiah, CA 95482 To formulate a land use compatibility plan, provide for the orderly growth of the airport and the surrounding area, and safeguard the general welfare of the inhabitants within the vicinity Owen/Schlatter
Greg Owen, Airport Manager; 467-2855; [email protected] Craig Schlatter, Director of Community Development; 463-6219; [email protected] Mendocino County 1st District Liaison Monthly; TBD
Civic Center Annex conference room #5 411 West Clay St. Ukiah, CA 95482 Civic Center300 Seminary Ave.Ukiah, CA 95482
To coordinate activities and policy development with the City's 1st District Supervisor BrownCrane- Alternate
Sage Sangiacomo, City Manager; 463-6221; [email protected] Mendocino County 2nd District Liaison 1st Wednesdays of month, 8:00 a.m.
Civic Center Annex conference room #5 411 West Clay St. Ukiah, CA 95482 Civic Center300 Seminary Ave.Ukiah, CA 95482
To coordinate activities and policy development with the County's 2nd District Supervisor Brown Shannon Riley, Deputy City Manager; 467- 5793 [email protected] LOCAL/COUNTY/REGIONAL/LIASONS OnGoing One or Two Council and/or Staff
MTG DATE/TIME LOCATION MAILING ADDRESS/CONTACT COMMITTEE FUNCTION ASSIGNED TO PRINCIPAL STAFF SUPPORT Fire Executive Committee 2nd Wednesdays of month, 3:45 p.m. Ukiah Valley Conference Center, 200 S. School Street Ukiah, CA Stephanie AbbaCivic Center300 Seminary Ave.Ukiah, CA 95482 [email protected] Per the recently adopted agreement between the City of Ukiah and the Ukiah Valley Fire Protection District Orozco/Brown Doug Hutchison, Fire Chief; 463-6263; [email protected]
STANDING COMMITTEES MTG DATE/TIME LOCATION MAILING ADDRESS/CONTACT COMMITTEE FUNCTION ASSIGNED TO PRINCIPAL STAFF SUPPORT Equity and Diversity TBD Virtual Meeting Room (link to be created) Civic Center 300 Seminary Ave. Ukiah, CA 95482 Improve diversity and equity in the City’s workforce and municipal services Orozco/Duenas Traci Boyl, City Manager's Office Management Analyst; 467-5720 [email protected] 2 1/20/2022
COMMITTEE ASSIGNED TO PRINCIPAL STAFF SUPPORT
Electric Grid Operational Improvements Crane/Orozco Cindy Sauers, Electric Utility Director; 463-629586 [email protected]
Trench Cut Policy Development Crane/Brown Tim Eriksen, Public Works Director/City Engineer; 463-6280 [email protected]
Budget Development Best Practices and
Financial Policy For FY 22/23 Budget Crane/Brown
Dan Buffalo, Director of Finance;
463-6220 [email protected]
Sheri Mannion, Human Resource Director/Risk
Manager; 463-6272, [email protected]
Advance Planning & Policy for Sphere of
Influence (SOI), Municipal Service Review (MSR),
Annexation, Tax Sharing, Detachment, and Out
of Area Service Agreements
Crane/Rodin
Sage Sangiacomo, City Manager
463-6221 [email protected]
Shannon Riley, Deputy City Manager
467-5793 [email protected]
Craig Schlatter, Community Development Director
463-6219 [email protected]
Sean White, Director of Water Resources;
463-5712 [email protected]
Tim Eriksen, Public Works Director/City Engineer;
463-6280 [email protected]
Cindy Sauers, Electric Utility Director;
463-629586 [email protected]
Dan Buffalo, Director of Finance; 463-6220
[email protected]
2021 Electric Rate Study Crane/Duenas Cindy Sauers, Electric Utility Director; 463‐6286 [email protected]
Housing Element and Implementation Review Rodin/Orozco Craig Schlatter, Community Development Director 463-6219 [email protected]
UVSD/ City Relations
Ad hoc committee to address specific issues with the
Ukiah Valley Sanitation District, including discussion of overall sewer system service delivery policies, operating policy revisions, potential revisions to the current
Operating Agreement, and cost sharing
Crane/Brown
Dan Buffalo, Director of Finance;
463‐6220 [email protected]
Sean White, Water Resources Director
463‐5712 [email protected]
Upper Russian River Water Agency/City
Relations Crane/Brown Sean White, Director of Water Resources; 463‐5712 [email protected]
Orr Street Bridge Corridor Rodin/Duenas Tim Eriksen, Public Works Director/City Engineer; 463-6280 [email protected]
Complete Streets Rodin/Crane
Tim Eriksen, Public Works Director/City Engineer;
463-6280 [email protected]
Shannon Riley, Deputy City Manager
467-5793 [email protected]
Neil Davis, Community Services Director
467-5764 [email protected]
2022 AD HOC COMMITTEES
3 1/20/2022