Ukiah City Council
February 2, 2022

City Council
Regular Meeting
AGENDA
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February 2, 2022 - 6:00 PM

1. ROLL CALL

2. PLEDGE OF ALLEGIANCE

3. PROCLAMATIONS/INTRODUCTIONS/PRESENTATIONS

3.a. Proclamation Recognizing February 2022 as Black History Month in the City of Ukiah.

Recommended Action: Issue Proclamation.

Attachments:

1. 2022 - Black History Month Proclamation

3.b. 2021/2022 Ukiah On Ice Presentation and Sponsor Appreciation.

Recommended Action: Receive Report
Attachments:

1. Ukiah On Ice Sponsors 21-22

3.c. Introduction of Electric Utility Director Cindy Sauers.

Recommended Action: City Manager to introduce Electric Utility Director Cindy Sauers Attachments: None

4. PETITIONS AND COMMUNICATIONS

5. APPROVAL OF MINUTES

5.a. Approval of the Minutes for the January 19, 2022, Regular Meeting.

Recommended Action: Approve the minutes for the January 19, 2022, regular meeting.

Attachments:

1. 2022-01-19 Draft Minutes

6. RIGHT TO APPEAL DECISION
Persons who are dissatisfied with a decision of the City Council may have the right to a review of that decision by a court. The City has adopted Section 1094.6 of the California Code of Civil Procedure, which generally limits to ninety days (90) the time within which the decision of the City Boards and Agencies may be judicially challenged.

7. CONSENT CALENDAR
The following items listed are considered routine and will be enacted by a single motion and roll call vote by the City Council.

Items may be removed from the Consent Calendar upon request of a Councilmember or a citizen in which event the item will be considered at the completion of all other items on the agenda. The motion by the City Council on the Consent Calendar will approve and make findings in accordance with Administrative Staff and/or Planning Commission recommendations.

7.a. Report of Disbursements for the Month of December 2021 Recommended Action: Approve the Report of Disbursements for the Month of December 2021.

Attachments:

1. December 2021 Summary of Disbursements

2. Account Codes for Reference

3. Object Codes for Reference

4. December 2021 Disbursement Detail

7.b. Adoption of Ordinance Amending Article 1 of Division 1, Chapter 4 of the Ukiah City Code to Reform the Paths, Open Space, and Creeks Commission and the Parks, Recreation and Golf Commission into the Public Spaces Commission.

Recommended Action: Adopt Ordinance amending Article 1 of Division 1, Chapter 4 of the Ukiah City Code to reform the Paths, Open Space, and Creeks Commission and the Parks, Recreation and Golf Commission into the Public Spaces Commission.

Attachments:

1. Public Spaces Commission Ordinance Introduced

2. ASR Community Outreach Plan Draft

7.c. Report of Emergency Purchase Order #47685 Issued to Wipf Construction LLC for the Water Resources Department in the Amount of $38,500 to Replace Two Check Valves that Failed and Approve a Budget Amendment for Expenses in the 2021/2022 Fiscal Year Related to Equipment Maintenance and Repair using Water Resources Reserve Funds.

Recommended Action: Council will receive a report of Purchase Order #47685 issued to Wipf Construction LLC in the amount of $38,500, for the emergency replacement of two check valves and approve budget amendment to the Water Operation and Maintenance Fund for possible expenses in the 2021/2022 Fiscal Year related to equipment maintenance and repair.

Attachments:

1. Wipf Quotes 560, 561

7.d. Award of Professional Services Agreement to On Duty Health for Annual National Fire Protection Association (NFPA) Compliant Physical Exams and Screenings for Fire Authority Staff in the Amount of $28,415.48.

Recommended Action: Approve the Professional Services Agreement with On Duty Health for annual NFPA compliant physicals and screenings for Fire Authority staff in the amount of $28,415.48.

Attachments:

1. On Duty Health Proposal for Ukiah CA FD - 12-02-2021

8. AUDIENCE COMMENTS ON NON-AGENDA ITEMS
The City Council welcomes input from the audience. If there is a matter of business on the agenda that you are interested in, you may address the Council when this matter is considered. If you wish to speak on a matter that is not on this agenda, you may do so at this time. In order for everyone to be heard, please limit your comments to three (3) minutes per person and not

more than ten (10) minutes per subject. The Brown Act regulations do not allow action to be taken on audience comments in which the subject is not listed on the agenda.

9. COUNCIL REPORTS

10. CITY MANAGER/CITY CLERK REPORTS

11. PUBLIC HEARINGS (6:15 PM)

11.a. The Ukiah City Council Will Receive a Financial Report of the Electric Utility and Consider Adoption of the Proposed Electric Rate Adjustments and Create a 100% Green Energy Rate by Resolution.

Recommended Action: Receive financial report of the Electric Utility and approve the proposed electric rate adjustments and create a 100% Green Energy Rate by Resolution.

Attachments:

1. Graph Cash No Inc

2. Graph No Loan PGE Compare

3. Graph Loan PGE Compare

4. Cash with and without Loan

5. Rate Tables - Exhibit A to the Resolution

6. Resolution Adopting Electric Rate Schedule - See Attachment 5 for Exhibit A

11.b. Conduct a Public Hearing and Consider Adopting Respective Resolutions Authorizing Lease Revenue Bonds, Series 2022 to Renovate the City Corporation Yard and Construct Improvements to Various City Streets (This item was continued from January 19, 2022.) Recommended Action: Adopt resolutions authorizing the issuance of lease revenue bonds and authorizing the City Manager to execute all related documents for the renovation of the City Corporation Yard and improvements to various City streets.

Attachments:

1. 1 Ukiah City Reso- Lease

2. 2 Ukiah Authority Reso- Issue Bonds

3. 3 Site Lease - Ukiah

4. 4 Lease Agreement - Ukiah

5. 5 Indenture - Ukiah

6. 6 Assignment Agmt - Ukiah

7. 7 POS (Ukiah LRBs)

8. 8 Bond Purchase Agreement (Piper Sandler)

12. UNFINISHED BUSINESS

12.a. Possible Introduction By Title Only of Ordinance Restricting the Retail Sale of Nitrous Oxide.

Recommended Action: Introduce by title only the Ordinance Restricting the Retail Sale of Nitrous Oxide.

Attachments:

1. Nitrous Oxide Sales Ordinance Final

12.b. 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.

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.

Attachments:

1. Marijuana Dispensaries Ordinance (Nos. 1176 and 1182)

13. NEW BUSINESS

13.a. Seeking Direction from Council Regarding Updates to the Municipal Codes Regulating City Parks.

Recommended Action: Provide Staff direction to update City Codes regulating City Parks.

Attachments:

1. Table of Changes

2. Parks Code Update

13.b. 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.

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.

Attachments:

1. Resolution 2014-28

13.c. 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).

Recommended Action: Receive report(s). The Council will consider modifications to committee and ad hoc assignments along with the creation/elimination ad hoc(s).

Attachments:

1. 2022 City Council Special Assignments

14. CLOSED SESSION - CLOSED SESSION MAY BE HELD AT ANY TIME DURING THE MEETING

14.a. Conference with Legal Counsel—Anticipated Litigation (Government Code Section 54956.9(d)(2)or(3))
Significant exposure to litigation pursuant to paragraph (2) or (3) of subdivision (d) of Section 54956.9: (Number of potential cases: 1)
Recommended Action:

Attachments: None

14.b. Conference with Legal Counsel—Anticipated Litigation (Government Code Section 54956.9(d)(2)or(3))
Significant exposure to litigation pursuant to paragraph (2) or (3) of subdivision (d) of Section 54956.9: (1 potential case, involving possible termination of construction contract for cause) Recommended Action:

Attachments: None

14.c. Conference with Legal Counsel – Existing Litigation (Government Code Section 54956.9(d)(1))
Name of case: Vichy Springs Resort v. City of Ukiah, Et Al; Case No. SCUK-CVPT-2018-70200 Recommended Action:

Attachments: None

14.d. Conference with Legal Counsel – Existing Litigation (Government Code Section 54956.9(d)(1))
Name of case: Vichy Springs Resort v. City of Ukiah, Et Al; Case No. SCUK-CVPT-20-74612 Recommended Action: Confer in Closed Session
Attachments: None

14.e. Conference with Legal Counsel – Existing Litigation (Cal. Gov’t Code Section 54956.9(d)(1))
Name of case: City of Ukiah v. Questex, LTD, et al, Mendocino County Superior Court, Case No. SCUK- CVPT-15-66036
Recommended Action: Confer in Closed Session
Attachments: None

14.f. Conference with Legal Counsel – Existing Litigation (Cal. Gov’t Code Section 54956.9(d)(1))
Name of case: Siderakis v. Ukiah, et al, Mendocino County Superior Court, Case No. 21CV00603
Recommended Action: Confer in Closed Session
Attachments: None

14.g. Conference with Legal Counsel – Existing Litigation (Government Code Section 54956.9(d)(1))
Name of case: Gerardo Magdaleno, by and through his Guardian Ad Litem, Pedro Francisco Magdaleno v. City of Ukiah, Justin Wyatt (Fed. Dist. Ct. N.D. Cal.) 3:21-2609 VC.

Recommended Action: Confer in Closed Session
Attachments: None

14.h. Conference with Real Property Negotiators
(Cal. Gov’t Code Section 54956.8)
Property: APN Nos: 003-500-19; 003-190-08; 057-050-12; 157-050-11; 157-060-003; 001-040- 83;157-050-03, 157-060-02, 157-050-04, 157-050-03, 157-030-02, 157-050-01, 157-050-02, 157-050-10, 157-050-09, 157-070-01, 157-070-02, 003-190-01; 003-181-01; 003-582-38 Negotiator: Sage Sangiacomo, City Manager;
Negotiating Parties: Dave Hull and Ric Piffero
Under Negotiation: Price & Terms of Payment
Recommended Action: Confer in Closed Session
Attachments: None

14.i. Conference with Labor Negotiator (54957.6)
Agency Representative: Sage Sangiacomo, City Manager
Employee Organizations: All Bargaining Units
Recommended Action: Confer in Closed Session
Attachments: None

15. ADJOURNMENT
Please be advised that the City needs to be notified 72 hours in advance of a meeting if any specific accommodations or interpreter services are needed in order for you to attend. The City complies with ADA requirements and will attempt to reasonably accommodate individuals with disabilities upon request. Materials related to an item on this Agenda submitted to the City Council after distribution of the agenda packet are available for public inspection at the front counter at the Ukiah Civic Center, 300 Seminary Avenue, Ukiah, CA 95482, during normal business hours, Monday through Friday, 8:00 am to 5:00 pm.

I hereby certify under penalty of perjury under the laws of the State of California that the foregoing agenda was posted on the bulletin board at

the main entrance of the City of Ukiah City Hall, located at 300 Seminary Avenue, Ukiah, California, not less than 72 hours prior to the meeting set forth on this agenda.

Kristine Lawler, CMC/City Clerk
Dated: 1/28/22

Agenda Item No: 3.a.

MEETING DATE/TIME: 2/2/2022
ITEM NO: 2022-1286

AGENDA SUMMARY REPORT
SUBJECT: Proclamation Recognizing February 2022 as Black History Month in the City of Ukiah.

DEPARTMENT: City Manager /
Admin PREPARED BY: Traci Boyl, Management Analyst
PRESENTER: Mayor Brown
ATTACHMENTS:

1. 2022 - Black History Month Proclamation
Summary: The City Council will issue a proclamation recognizing February 2022 as Black History Month in the City of Ukiah.

Background: Black History Month is observed in February of each year and is a national annual celebration and recognition of achievements by African Americans.

Black History Month can be traced back to 1926, and since 1976, every American president has designated February as Black History Month and has endorsed a specific theme. The Black History Month 2022 theme, "Black Health and Wellness", focuses on the importance of Black Health and Wellness.

Discussion: Black History Month reminds us to continue to fight for justice and equality. It should be a uniting call for our nation to work towards a more diverse, supportive, inclusive, and protective union.

The proclamation recognizing February 2022 as "Black History Month" in the City of Ukiah is Attachment 1.

Recommended Action: Issue Proclamation.

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: Diversity and Equity Committee

WHEREAS, Black History Month is observed in February of each year and is a national annual celebration and recognition of achievements by African Americans; and WHEREAS, Black HistoryMonth seeks to recognize the central role that African Americans have played in our nation’s history and to honor the many achievements and contributions African Americans have made and continue to make in our society; and WHEREAS, Black History Month can be traced back to 1926 when the writer and scholar Dr.

Carter G. Woodson, the “Father of Black History Month,” initiated the celebration which corresponded with the birthdays of Frederick Douglass and Abraham Lincoln, and in 1975, the celebration was expanded to include the entire month of February; and WHEREAS, since 1976, every American president has designated February as Black History Month and has endorsed a specific theme; and
WHEREAS, the Black History Month 2022 theme, “Black Health and Wellness,” focuses on the importance of Black Health and Wellness; and
WHEREAS, Black History Month reminds us to continue to fight for justice and equality and should be a uniting call to our nation to continue to work for a more diverse, supportive, inclusive, and protective union; and
WHEREAS, Black History Month celebrates the many achievements and contributions made by African Americans, including our local heroes; and
WHEREAS, we welcome the community to participate in the celebration and recognition of Black History Month by attending one of the many national events such as the Association for the Study of African American Life and History (ASALH) https://asalh.org/, Virtual Black History Month Festival http://www.asalh.org/festival, or one of the virtual events or programs by the Smithsonian National Museum of African American History & Culture at http://www.nmaahc.si.edu/events, or by attending a local celebration of Black History; NOW, THEREFORE BE IT RESOLVED that the City Council of the City of Ukiah, hereby proclaims February 2022 as
Black History Month in the City of Ukiah
Signed and sealed, this 2nd day of February in the year Two Thousand and Twenty-Two.

Jim Brown
City Council, Mayor

C I T Y O F U K I A H
RECOGNIZING FEBRUARY 2022 AS “BLACK HISTORY
MONTH” IN THE CITY OF UKIAH

Agenda Item No: 3.b.

MEETING DATE/TIME: 2/2/2022
ITEM NO: 2022-1246

AGENDA SUMMARY REPORT
SUBJECT: 2021/2022 Ukiah On Ice Presentation and Sponsor Appreciation.

DEPARTMENT: Community Services PREPARED BY: Jake Burgess, Recreation Supervisor PRESENTER: Jake Burgess, Community Services Supervisor
ATTACHMENTS:

1. Ukiah On Ice Sponsors 21-22
Summary: Ukiah City Council approved the purchase of a seasonal ice rink with the purpose of bringing the Ukiah On Ice downtown skating rink back for the holiday season. The ice rink was overwhelmingly popular with the community this season and was supported by numerous local sponsors. The Council will receive a presentation showing a video recapping the Ukiah On Ice season and gratitude will be given to the sponsors.

Background: The City of Ukiah has previously partnered with local businesses and organizations to bring a seasonal ice skating rink to downtown Ukiah. Due to the pandemic, Ukiah did not host an ice rink in 2020 but worked to bring it back for this holiday season. On September 1, 2021, the City Council approved the purchase of a seasonal ice rink which included skates, glycol tubes/ piping, glycol, clear dasherboards, skate sharpener, Ice Wizard resurfacing machine, gas powered edger, and rubber mats. The 200 ton chiller and 40' x 120' tent remained rental items as they entail complicated installations and would require inordinate amounts of storage space and need specialized maintenance.

The rink was again located on School Street in front of Alex Thomas Plaza. The rink was forty feet wide and one hundred feet long (40' x 100') which is the maximum size based on the parameters of the location on School Streer. The site is ideal for its proximity to electrical access, restrooms, parking and the covered pavilion. Another benefit to the location is that the activity at the rink brings thousands of people to the downtown area, where they have access to local shops and restaurants during the prime holiday shopping season.

Discussion: The Ukiah On Ice downtown skating rink was open daily, including holidays, for five weeks, and hosted school field trips along with private parties throughout the majority of the operation. Skating (including ice skate rental) was $10 per person per session for regular public skating hours and $8 per session for field trips or large groups. Opening night was Saturday, December 4th and was coordinated with the Light Parade and festive activities at the Plaza.

The community response to the ice rink was overwhelming, drawing people from all around Mendocino County, Lake County, and Sonoma County. The excitement and energy focused around the rink was palpable and resulted in a significant number of visitors to the downtown area. The rink was especially popular on the weekends, with significant numbers of skaters and families enjoying the activity.

The ice rink hosted a multitude of special events including birthday parties, theme nights, New Year’s Eve party, and school fundraisers. These events served to create special memories for those who attended, and the unique setting of a downtown ice skating rink during the holiday season was a ready-made photo opportunity for families and friends.
2021/22 Ukiah on Ice:

- Received over 8,000 skaters of all ages from near and far - Welcomed 50 field trips with over 1,200 students and dozens of chaperones - Hosted 6 private parties and 9 small parties
- Held 4 fundraisers including PTO nights and a 4H fundraiser - Employed 35 young adults and 1 senior adult
- Was supported by 29 sponsors
- Received widespread exposure on social media: Facebook, ‘Ukiah on Ice’ posts reached an impressive 35,230 people, 3,030 engagements, and 527 reactions. Instagram posts and stories reached 2,815 separate users and elicited 1,076 responses (Likes, Comments)
City Staff would like to extend their appreciation to the City Council for their support and to everyone who participated in Ukiah On Ice, from the skaters to the behind-the-scenes-staff. In particular, City Staff would like to recognize the generous community sponsors (listed in Attachment 1) who supported this event and ultimately made it possible, with many going above and beyond for this community event. For their contributions, we will be sending them Certificates of Recognition signed by the Mayor.

Purchasing the seasonal ice rink entailed an interfund loan of $195,805. At the end of this season, although there are a few budgetary numbers to firm up, we plan to make an estimated transfer of $30,000 to begin repaying the loan.

Recommended Action: Receive Report
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:

Partners
Attachment 1

Platinum & Gold Sponsors

Acevedo’s Ukiah Truck Repair,
Community First Credit Union,
Food Runners,
MCHC Health Centers, Mendo Mill,
Mountain View Assisted Living, Pardini Appliance,
Pear Tree Center,
Ukiah Waste Solutions,
Black Oak Coffee Roasters,
El Azteca, Ferranti Construction,
Fetzer Vineyards, METALfx,
North American Organics, Park Falls Dental,
Radiant Yoga, Thurston Auto Plaza,
Savings Bank of Mendocino County,
George Petersen & Associates
Silver & Bronze Sponsors

Agenda Item No: 3.c.

MEETING DATE/TIME: 2/2/2022
ITEM NO: 2022-1248

AGENDA SUMMARY REPORT
SUBJECT: Introduction of Electric Utility Director Cindy Sauers.

DEPARTMENT: City Manager /
Admin PREPARED BY: Sheri Mannion, H.R. Director/Risk Manager PRESENTER: Sage Sangiacomo, City Manager
ATTACHMENTS:

None
Summary: The City Manager's Office is pleased to introduce Electric Utility Director Cindy Sauers.

Background: Cindy Sauers was promoted by the City Manager on December 31, 2021 to the position of Electric Utility Director. Cindy previously served as the Assistant Utility Director and the Power Distribution Engineer. Cindy has over 25 years of experience in the electric industry with both industrial and utility experience. Cindy has a Bachelor of Science degree in Electrical Engineering. She began her career working for a communications company designing facilities for areas of rural New Mexico and the Najavo Indian Reservation. She also spent several years working for Phelp Dodge Mining Company as a distribution engineer and supervisor in a large open-pit copper mine in Arizona.Since Cindy began with the City in 2002, she took a couple of breaks in her career to focus on her family. She is excited to continue the work of the department and focus on improving the utility for the City's customers.

Discussion: The City Manager's Office is pleased to introduce Cindy Sauers. Cindy resides in the local area with her husband and children, and enjoys bike riding, gardening and bee keeping!

Recommended Action: City Manager to introduce Electric Utility Director Cindy Sauers BUDGET AMENDMENT REQUIRED: N/A
CURRENT BUDGET AMOUNT: N/A
PROPOSED BUDGET AMOUNT: N/A
FINANCING SOURCE: N/A
PREVIOUS CONTRACT/PURCHASE ORDER NO.: N/A
COORDINATED WITH: N/A

AGENDA ITEM 5a

CITY OF UKIAH

CITY COUNCIL MINUTES
Regular Meeting
Virtual Meeting Link: https://zoom.us/j/97199426600
Ukiah, CA 95482
January 19, 2022
6:00 p.m.

1. ROLL CALL
Ukiah City Council met at a Regular Meeting on January 19, 2022, having been legally noticed on January 15, 2022. The meeting was held virtually at the following link:
https://zoom.us/j/97199426600. Mayor Brown called the meeting to order at 6:00 p.m. Roll was taken with the following Councilmembers Present: Juan V. Orozco, Douglas, F. Crane, Mari Rodin, Josefina Dueňas, and Jim O. Brown. Staff Present: Sage Sangiacomo, City Manager; David Rapport, City Attorney; and Kristine Lawler, City Clerk.

MAYOR BROWN PRESIDING.

2. PLEDGE OF ALLEGIANCE
The Pledge of Allegiance was led by Mel Grandi, Retired Electric Utility Director.

3. PROCLAMATIONS/INTRODUCTIONS/PRESENTATIONS
a. Proclamation Recognizing Mel Grandi for His Significant Professional Contributions to the City of Ukiah Electric Utility Department and the Customers It Serves, and Rename the Substation on Orchard Avenue to Grandi Substation.

Presenter: Mayor Brown.

Proclamation was received by Mel Grandi, Retired Electric Utility Director.

Incoming Electric Utility Director, Cindy Sauers, displayed a plaque being presented to Mr. Grandi.

Council and Staff Comments: Councilmembers Rodin, Crane, and Orozco; Vice Mayor Duenas; Mayor Brown; Cindy Sauers, Incoming Electric Utility Director; Greg Owen, Airport Manager; Tami Bartlomei, Office of Emergency Services Coordinator; Diann Lucchetti, Program Coordinator; Scott Bozzoli, Electrical Engineer Technician I; Scott Branson, Electric Utility Technician II; Tim Santo, Electric Supervisor; Sonu Upadhyay, Senior Power Engineer; Sage Sangiacomo, City Manager; Kristine Lawler, City Clerk; and David Rapport, City Attorney. b. Presentation of the City of Ukiah Equity Action Plan and Approval of a Resolution Adopting the Equity Action Plan Created by the Equity and Diversity Standing Committee, and Changing the Name of the Committee to the Diversity and Equity Standing Committee.

Presenter: Traci Boyl, Management Analyst.++++
Public Comment: Corinne Jones, Diversity and Equity Committee Member.

Motion/Second: Rodin/Orozco to approve the Resolution (2022-01) adopting the City of Ukiah Equity Action Plan created by the Equity and Diversity Standing Committee and changing the name of the Committee to the Diversity and Equity Standing Committee. Motion carried by the following roll call votes: AYES: Orozco, Crane, Rodin, Dueňas, and Brown. NOES: None. ABSENT: None.

ABSTAIN: None.

City Council Minutes for January 19, 2022, Continued:

4. PETITIONS AND COMMUNICATIONS

5. APPROVAL OF MINUTES
a. Approval of the Minutes for the December 13, 2021, Special Meeting. b. Approval of the Minutes for the December 15, 2021, Regular Meeting. c. Approval of the Minutes for the December 27, 2021, Special Meeting.

Motion/Second: Rodin/Crane to approve Minutes of December 13, 2021, a special meeting; December 15, 2021, a regular meeting; and December 27, 2021, a special meeting, as submitted.

Motion carried by the following roll call votes: AYES: Orozco, Crane, Rodin, Dueňas, and Brown.

NOES: None. ABSENT: None. ABSTAIN: None.

6. RIGHT TO APPEAL DECISION

7. CONSENT CALENDAR
a. Adoption of Resolution (2022-02) of the City Council Reconsidering the Circumstances of the State of Emergency and Implementing Teleconferencing Requirements for City Council and Board and Commission Meetings During a Proclaimed State of Emergency Due to the COVID-19 Pandemic – City Attorney.
b. Adoption of Resolution (2022-03) Approving the City of Ukiah's Qualified Contractors List for 2022 – City Clerk.
c. Notification to City Council of Contract No. 2021-235-A1 with Cinquini & Passarino Inc. for Consulting and Surveying Services at the Electric Service Center on Hastings Rd. in the Amount of $17,500.00 – Electric Utility.
d. Adoption of a Resolution (2022-04) of Application for a Revised Submittal to the Mendocino Local Agency Formation Commission (LAFCo) to Annex City-Owned Properties within Unincorporated Mendocino County; and Approval of the Community Development Director's Determination that the Proposed Annexation Qualifies for a CEQA Exemption – Community Development. e. Report to Council on PO #47411 Issued to Corrosion Protection Solutions in the Amount of $61,560, as well as Change Order #01 in the Amount of $4,843.80, for a Total of $66,403, and Request a Budget Amendment for this Amount – Water Resources.
f. Approval of Contract Amendment (COU No. 2122-105-A1) with BKF Engineers for the Additional Design to the Gobbi Street Utility Replacement Project, and Approval of a Corresponding Budget Amendment – Public Works.
g. Adopt Resolution (2022-05) and Approve the Support Services Program Agreement (SSPA) (COU No. 2122-167) with the Northern California Power Agency (NCPA) – Electric Utility. h. Notification of Purchase Order #47600-02 Issued to Bartley Pump PM, LLC for the Teardown, Inspection, and Rehabilitation of Well #8 in the Amount of $28,689.70 – Water Resources. i. Authorize City Manager to Sign Airport Rescue Grant Offer, Grant No. 3-06-0268-021-2022 (COU No. 2122-164) for Ukiah Municipal Airport in the Amount of $32,000, and Approve Corresponding Budget Amendment(s) - Airport.
j. Approve the Purchase of Mobile Data Terminals (MDT) for the Ukiah Valley Fire Authority (UVFA) in the Amount of $173,830.11 for the Initial Three Years, and Approve Corresponding Budget Amendment – Fire – Removed by Mayor Brown and placed as Agenda Item 13e..

City Council Minutes for January 19, 2022, Continued:

k. Report the Emergency Purchase of all Materials and Labor for the Traffic Signal Control Cabinets Replacement at the Intersections of State & Standley and State & Perkins Streets from DC Electric Group in the Amount of $58,935.00 – Public Works.
l. Approval of a Professional Service Contract (COU No. 2122-165) with GHD for Flood Mapping Review Support in the Amount Not to Exceed $17,000, and Corresponding Budget Amendment – Public Works.

Motion/Second: Rodin/Orozco to approve Consent Calendar Items 7a-I and 7k-l, as submitted.

Motion carried by the following roll call votes: AYES: Orozco, Crane, Rodin, Dueňas, and Brown.

NOES: None. ABSENT: None. ABSTAIN: None.

13. NEW BUSINESS
e. Approve the Purchase of Mobile Data Terminals (MDT) for the Ukiah Valley Fire Authority (UVFA) in the Amount of $173,830.11 for the Initial Three Years, and Approve Corresponding Budget Amendment.

Presenters: Doug Hutchison, Fire Chief and Justin Buckingham, Battalion Chief.

Motion/Second: Rodin/Orozco to approve the purchase of Mobile Data Terminals in the amount of $173,830.11 from RadioMobile, and approve the corresponding budget amendment. Motion carried by the following roll call votes: AYES: Orozco, Crane, Rodin, Dueňas, and Brown. NOES: None.

ABSENT: None. ABSTAIN: None.

8. AUDIENCE COMMENTS ON NON-AGENDA ITEMS
No public comment received.

9. COUNCIL REPORTS
Presenters: Councilmembers Rodin and Orozco, Vice Mayor Duenas, Councilmember Crane, and Mayor Brown.

10. CITY MANAGER/CITY CLERK REPORTS
Presenters: Sage Sangiacomo, City Manager; and
 Graffiti Abatement Program – Shannon Riley, Deputy City Manager.  Security Camera Registery Program – Shannon Riley, Deputy City Manager.

11. PUBLIC HEARINGS (6:15 PM)
a. Conduct a Public Hearing and Consider Adopting Respective Resolutions Authorizing Lease Revenue Bonds, Series 2022 to Renovate the City Corporation Yard and Construct Improvements to Various City Streets (This item was continued from December 15, 2021.) Presenter: Dan Buffalo, Finance Director.

PUBLIC HEARING OPENED AT 7:26 P.M.

No public comment was received.

PUBLIC HEARING CLOSED AT 7:26 P.M.

Motion/Second: Crane/Orozco to continue this item to the February 2, 2022 [at 6:00 p.m.] meeting.

Motion carried by the following roll call votes: AYES: Orozco, Crane, Rodin, Dueňas, and Brown.

NOES: None. ABSENT: None. ABSTAIN: None.

THE CITY COUNCIL ADJOURNED TO THE UKIAH PUBLIC FINANCING AUTHORITY MEETING AT 7:29 P.M.

City Council Minutes for January 19, 2022, Continued:

UKIAH PUBLIC FINANCING AUTHORITY

1. ROLL CALL
The Ukiah Financing Authority met at a Special Meeting on January 19, 2022, having been legally noticed on January 15, 2022. Chair Brown called the meeting to order at 7:29 p.m. Roll was taken with the following Members Present: Juan V. Orozco, Douglas, F. Crane, Mari Rodin, Josefina Dueňas, and Jim O. Brown. Staff Present:

Sage Sangiacomo, City Manager; David Rapport, City Attorney; and Kristine Lawler, City Clerk.

CHAIR BROWN PRESIDING.

2. AUDIENCE COMMENTS ON NON-AGENDA ITEMS
No public comment was received.

3. UNFINISHED BUSINESS
a. Consider Adopting Respective Resolutions Authorizing Lease Revenue Bonds, Series 2022 to Renovate the City Corporation Yard and Construct Improvements to Various City Streets.

Presenter: Dan Buffalo, Finance Director.

Motion/Second: Crane/Rodin to continue this item to the February 2, 2022, at 6:00 p.m.meeting. Motion carried by the following roll call votes: AYES: Orozco, Crane, Rodin, Dueňas, and Brown. NOES: None. ABSENT: None. ABSTAIN: None.

4. NEW BUSINESS

5. ADJOURNMENT

There being no further business, the meeting adjourned at 7:33 p.m.

THE CITY COUNCIL RECONVENED THE REGULAR MEETING AT 7:33 P.M.

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

Presenter: Tami Bartolomei, Office of Emergency Services Coordinator.

Report was received.
b. Determination of Notification of Intent to Adjust Curbside Collection and Transfer Station Service Rates in Compliance with Solid Waste Contracts, and Initiation of Proposition 218 Protest Period for Residential Curbside Collection Rates.

Presenters: Dan Buffalo, Finance Director and Tim Eriksen, Public Works Director/City Engineer.

C&S Waste Comment: Bruce McCracken, C&S Waste Site Manager.

Motion/Second: Rodin/Brown to confirm the determination of the City Manager, as reported here, of compliance with the provisions of the agreements between the City of Ukiah and Ukiah Waste Solutions, Inc. (COU No. 1718-162) and Solid Waste Systems, Inc. (COU No. 2122-089) regarding the company's notice of intent to adjust curbside collection and transfer station rates, authorize the

City Council Minutes for January 19, 2022, Continued:

initiation of the Proposition 218 protest period for residential curbside collection rates, and schedule the subsequent protest hearing for March 16, 2022. Motion carried by the following roll call votes:

AYES: Orozco, Rodin, Dueňas, and Brown. NOES: None. ABSENT: None. ABSTAIN: Crane. c. Introduction of an Ordinance by Title Only, Amending Article 1 of Division 1, Chapter 4 of the Ukiah City Code to Reform the Paths, Open Space, and Golf Commission and the Parks, Recreation and Golf Commission into the Public Spaces Commission.

Presenters: Neil Davis, Community Services Director and Darcy Vaughn, Assistant City Attorney.

Motion/Second: Rodin/Crane to introduce the Ordinance by title only. Motion carried by the following roll call votes: AYES: Orozco, Crane, Rodin, Dueňas, and Brown. NOES: None. ABSENT:

None. ABSTAIN: None.

City Clerk, Kristine Lawler, read the following title into the record:

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

Motion/Second: Rodin/Crane to introduce an ordinance amending Article 1 of Division 1, Chapter 4 of the Ukiah City Code to reform the Paths, Open Space, and Golf Commission and the Parks, Recreation and Golf Commission into the Public Spaces Commission, as amended [starting on line 3 of the 1st paragraph,] under Section 1003 (Duties and Powers), to read “3) open spaces within and outside the city limits...” Motion carried by the following roll call votes: AYES: Orozco, Crane, Rodin, Dueňas, and Brown. NOES: None. ABSENT: None. ABSTAIN: None. d. Approve Contract Amendment Eight with Carollo Engineers for the Design Efforts of the Recycled Water Phase 4 Project in the Amount of $4,600,723, and Approval of Corresponding Budget Amendment.

Presenter: Sean White, Water Resources Director.

Motion/Second: Crane/Orozco to approve contract amendment eight (COU No. 1314-231-A8) with Carollo Engineers for the design efforts of the Recycled Water Phase 4 project in the amount of $4,600,773, and approval of corresponding budget amendment. Motion carried by the following roll call votes: AYES: Orozco, Crane, Rodin, Dueňas, and Brown. NOES: None. ABSENT: None.

ABSTAIN: None.
e. Consider Adoption of Resolution Adopting a 2022 Advocacy Platform to Serve as Guidelines for Local, State, and Federal Legislative Matters.

Presenter: Shannon Riley, Deputy City Manager.

Motion/Second: Rodin/Orozco to adopt resolution (2022-06) adopting a 2022 Advocacy Platform to serve as guidelines for local, state, and federal legislative, administrative, regulatory and court matters. Motion carried by the following roll call votes: AYES: Orozco, Crane, Rodin, Dueňas, and Brown. NOES: None. ABSENT: None. ABSTAIN: None.

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

City Council Minutes for January 19, 2022, Continued:

Presenter: Cindy Sauers, Electric Utility Director.

Motion/Second: Crane/Rodin to adopt a resolution (2022-07) authorizing the exception to the 180- day waiting period, and authorizing the City’s retired Electric Utility Director to work on a temporary basis as extra help employee in accordance with Government Code Sections 7522.56 and 21224.

Motion carried by the following roll call votes: AYES: Orozco, Crane, Rodin, Dueňas, and Brown.

NOES: None. ABSENT: None. ABSTAIN: None.

RECESS: 8:42 – 8:52 P.M.
b. Authorize Staff to Research and Possibly Apply for CalTrans' Clean California Grant; Authorize City Manager to Execute Grant Documents.

Presenter: Shannon Riley, Deputy City Manager.

Deputy City Manager introduced Jim Robbins, Project and Grants Manager.

Motion/Second: Crane/Rodin to authorize Staff to research and possibly apply for the CalTrans Clean California; authorize the City Manager to execute grant documents (COU No. 2122-166).

Motion carried by the following roll call votes: AYES: Orozco, Crane, Rodin, Dueňas, and Brown.

NOES: None. ABSENT: None. ABSTAIN: None.
c. Presentation of City's Audited Annual Comprehensive Financial Report (ACFR) and Audit Reports for the Year Ended June 30, 2020.

Presenter: Dan Buffalo, Finance Director.

Presentation was received.
d. Receive Updates; Discussion and Appointments Regarding 2022 Council Assignments; and Consideration of Disbandment and Modification to City Council Committees and Ad Hocs.

Presenters: Mayor Brown and City Manager Sangiacomo.

Motion/Second: Crane/Rodin to approve the recommended changes of disbandmandment and formation of ad hocs as presented on the 2022 Council Special Assignment and Ad Hoc List (attached for the record). AYES: Orozco, Crane, Rodin, Dueňas, and Brown. NOES: None. ABSENT:

None. ABSTAIN: None.

THE CITY COUNCIL ADJOURNED TO THE SUCCESSOR AGENCY FOLLOWED BY CLOSED SESSION AT 9:45 P.M.

14. CLOSED SESSION
a. Conference with Legal Counsel – Anticipated Litigation (Government Code Section 54956.9(d)(2 & 3))
Significant exposure to litigation pursuant to Government Code Section 54956.9(d)(2)(Number of potential cases: 1)
b. Conference with Legal Counsel – Anticipated Litigation (Government Code Section 54956.9(d)(2)or(3))
Significant exposure to litigation pursuant to paragraph (2) or (3) of subdivision (d) of Section 54956.9: (1 potential case, involving possible termination of construction contract for cause)

City Council Minutes for January 19, 2022, Continued:

c. Conference with Legal Counsel – Anticipated Litigation (Government Code Section 54956.9(d)(1))
Name of case: Vichy Springs Resort v. City of Ukiah, Et Al; Case No.

SCUK-CVPT-2018-70200
d. Conference with Legal Counsel – Existing Litigation
(Government Code Section 54956.9(d)(1))
Name of case: Vichy Springs Resort v. City of Ukiah, Et Al; Case No.

SCUK-CVPT-20-74612
e. Conference with Legal Counsel – Existing Litigation
(Cal. Gov’t Code Section 54956.9(d)(1))
Name of case: City of Ukiah v. Questex, LTD, et al, Mendocino County Superior Court, Case No. SCUK- CVPT-15-66036
f. Conference with Legal Counsel – Existing Litigation
(Cal. Gov’t Code Section 54956.9(d)(1))
Name of case: Siderakis v. Ukiah, et al, Mendocino County Superior Court, Case No. 21CV00603
g. Conference with Legal Counsel – Existing Litigation
(Government Code Section 54956.9(d)(1))
Name of case: Gerardo Magdaleno, by and through his Guardian Ad Litem, Pedro Francisco Magdaleno v. City of Ukiah, Justin Wyatt (Fed.

Dist. Ct. N.D. Cal.) 3:21-2609 VC.
h. Conference with Real Property Negotiators
(Cal. Gov’t Code Section 54956.8)
Property: APN Nos: 157-050-03, 157-060-02, 157-050-04, 157-050-03, 157-030-02, 157-050- 01, 157-050-02, 157-050-10, 157-050-09, 157- 070-01, 157-070-02, 003-190-01
Negotiator: Sage Sangiacomo, City Manager;
Negotiating Parties: Dave Hull and Ric Piffero
Under Negotiation: Price & Terms of Payment
i. Conference with Labor Negotiator (54957.6)
Agency Representative: Sage Sangiacomo, City Manager
Employee Organizations: All Bargaining Units+++
No action reported; direction provided to staff.

15. ADJOURNMENT
There being no further business, the meeting adjourned at 10:30 p.m. ________________________________
Kristine Lawler, City Clerk/CMC

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 Road Ukiah, 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 Center 300 Seminary Avenue conference 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] Russian 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 95472 508-3670 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, CA and 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

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

Agenda Item No: 7.a.

MEETING DATE/TIME: 2/2/2022
ITEM NO: 2022-1224

AGENDA SUMMARY REPORT
SUBJECT: Report of Disbursements for the Month of December 2021 DEPARTMENT: Finance PREPARED BY: Candice Rasmason, Accounts Payable PRESENTER: Consent Calendar
ATTACHMENTS:

1. December 2021 Summary of Disbursements

2. Account Codes for Reference

3. Object Codes for Reference

4. December 2021 Disbursement Detail
Summary: The Council will review and consider approval of the Report of Disbursements for the month of December 2021.

Background: Payments made during the month of December 2021 are summarized on the Report of Disbursements. Further detail is supplied on the Schedule of Bills, representing the four (4) individual payment cycles within the month.

Accounts Payable Check Numbers (City & UVFA): 3045488-3045574; 3045575-3045680; 3045681-3045840; 3045841-3045867
Accounts Payable Wire Transfers: 56, 59
Payroll Check Numbers: 509762-509805; 509806-509863; 509864-509922 Payroll Manual Check Numbers: N/A
Direct Deposit Numbers: 108316-108578; 108579-108839; 108840-109088 Manual Direct Deposit Numbers: 108549
Void Check Numbers: 3045452, 3045427, 3045549
Void Direct Deposit Numbers: 108578
Discussion: This report is submitted in accordance with Ukiah City Code Division 1, Chapter 7, Article 1.

Attachment #1: December 2021 Summary of Disbursements
Attachment #2: Account Codes for Reference
Attachment #3: Object Codes for Reference
Attachment #4: December 2021 Disbursement Detail

Recommended Action: Approve the Report of Disbursements for the Month of December 2021.

BUDGET AMENDMENT REQUIRED: N/A

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

Attachment 1
FUNDS:
100 General Fund $177,764.28 700 Sanitary Disposal Site Fund $22,785.53 101 GF-(Sub-Fund) Visit Ukiah $25,512.70 701 Landfill Corrective Fund 105 GF-(Sub-Fund) Fire Authority $77,297.65 702 Disposal Closure Reserve Fund $18,705.50 110 Special General Fund 704 Post Closure Fund - Solid Waste 120 Streets Capital Improvement $131,249.05 710 Ambulance Services Fund $11,527.57 130 Pension - Stabiliation Fund $77,681.51 720 Golf Fund ($18,440.82) 200 City Adminstrative Services 730 Confernence Center Fund $5,344.51 201 Worker's Comp Fund 750 Visit Ukiah
202 Liability Fund 777 Airport Fund $31,883.40
203 Garage Fund $11,604.03 778 Airport Capital Improvement Fund $2,505.64 204 Purchasing Fund $1,245.76 779 Special Aviation Fund 205 Billing & Collections Fund $47,786.30 800 Electric Fund $892,439.78 206 Public Safety Dispatch Fund $1,041.22 801 Electric Capital Reserve Fund $61,312.54 207 Payroll Posting Fund $299,311.88 803 Lake Mendocino Bond Reserve 208 Building Maintenance/Corp Yard Fund $49,973.63 805 Street Lighting Fund $9,071.74 209 IT Fund $81,201.76 806 Public Benefits Fund
220 Equipment Reserve Fund 807 Cap and Trade
249 City Housing Bond Proceeds 820 Water Fund $82,114.72 250 Special Revenue Fund $0.00 822 Water Capital Improvement Fund $3,750.20 251 Special Projects Reserve Fund 830 Recycled Water Fund $149,963.82 253 CITY PROP 172 $25,137.75 840 City/District Sewer Fund $84,711.48 300 Park Development Fund $3,463.75 841 Sewer Contruction Fund 301 Anton Stadium Fund $0.00 843 Sewer Capital Fund
302 Observatory Park Fund 900 Special Deposit Trust $9,211.66 304 Swimming Pool Fund $0.00 901 General Service (Accts Recv) $2,247.78 305 Riverside Park Fund $0.00 902 U.S.W. Billing & Collection $45,113.51 306 Skate Park Fund $0.00 903 Public Safety - AB 109 $0.00 310 Museum Grants 905 Federal Emergency Shelter Grant
311 Alex Rorbaugh Recreation Center Fund $10,270.08 905 Mendocino Emergency Service Authority 312 Downtown Business Improvement Fund 911 Russian River Watershed Association $30,666.08 313 LMIHF Housing Asset Fund 915 UVFD $752.19
314 Winter Special Events $10,403.71 916 UVFD PROP 172 $25,137.74 315 Advanced Planning Fund $0.00 917 UVFD Measure B
500 2106 Gas Tax Fund 918 UVFD Mitigation $1,361.78
501 2107 Gas Tax Fund 940 Sanitation District Special Fund 503 2105 Gas Tax Fund 942 Rate Stabilization - UVSD Fund 505 Signalization Fund 943 Sanitation District Capital Improvement Fund 506 Bridge Fund 952 REDIP Sewer Enterprise Fund
507 1998 STIP Augmentation Fund 960 Community Redevelopment Agency 508 SB325 Reimbursement Fund 961 RDA Housing Pass-Through 509 S.T.P. Fund $70.28 962 Redevelopment Housing Fund
510 Trans-Traffic Congest Relief Fund 963 Housing Debt
511 Rail Trail Fund 964 RDA Capital Pass-Through
600 Community Development Block Grant 965 Redevelopment Capital Improvement Fund 601 EDBG 94-333 Revolving Loan 966 Redevelopment Debt Service 602 Community Development Fund 967 Housing Bond Proceeds 603 08-HOME-4688 968 Non-Housing Bond Proceeds
604 CDBG Grant 09-STBG-6417 969 RDA Obligation Retirement Fund $1,092.48 605 11-HOME-7654 Fund $0.00 844/944 Sewer Capital Projects Fund $12,000.00 606 CDBG Grant 10-EDEF-7261
607 Prop 84 Grant Fund
609 13-CDBG-8940
610 City RDA Projects Fund
613 Home Program Activities
620 CASP Train
630 Asset Seizure Fund Retainage Withheld $9,252.30
631 Asset Seizure Fund (Drug/Alcohol) 611 CDBG 16-CDBG-11147 $2,031.25 633 H & S Education 11489(B)(2)(A1)
634 Federal Asset Seizure Grants
635 SUP Law Enforcement Service Fund
636 CBTHP Officer
637 Local Law Enforcement Block Grant
638 Asset Forfeiture 11470.2 H & S
639 Special Revenue - Police
640 Parking District Fund $538.33
670 Federal American Rescue Fund
691 Museum Fund
695 Transfer Station Fund
696 Sold Waste Mitigation Fund $29,440.00
PAYROLL CHECK NUMBERS: 509762-509805 TOTAL DEMAND PAYMENTS- A/P CHECKS $2,557,536.05 DIRECT DEPOSIT NUMBERS: 108316-108578 TOTAL DEMAND PAYMENTS- EFT's $0.00 PAYROLL PERIOD: 11/14/21-11/27/21 TOTAL PAYROLL CHECKS & DIRECT DEPOSITS $0.00 PAYROLL CHECK NUMBERS: 509806-509863 TOTAL PAYROLL EFT's (TAXES, PERS, VENDORS) $0.00 DIRECT DEPOSIT NUMBERS: 108579-108839 * vendor name( if applicable) PAYROLL PERIOD: 11/28/21-12/11/21
PAYROLL CHECK NUMBERS: 509864-509922
DIRECT DEPOST NUMBERS: 108840-109088
PAYROLL PERIOD: 12/12/21-12/25/21
VOID CHECK NUMBERS: TOTAL PAYMENTS $2,557,536.05
3045452, 3045427, 3045549
108549
108578
WIRE TRANSFER NUMBERS:
56, 59

CERTIFICATION OF CITY CLERK
This register of Payroll and Demand Payments was duly approved by the City Council on ____________________.

City Clerk

APPROVAL OF CITY MANAGER CERTIFICATION OF DIRECTOR OF FINANCE I have examined this Register and approve same. I have audited this Register and approve for accuracy and available funds.
____________________________________________ ________________________________________________ City Manager Director of Finance
MANUAL CHECK NUMBERS:

CITY OF UKIAH

REPORT OF DISBURSEMENTS

REGISTER OF PAYROLL AND DEMAND PAYMENTS

FOR THE MONTH OF DECEMBER

Account Code Summary Attachment 2
10000000 GENERAL FUND 20012500 CITY CLERK
10017200 SUCCESSOR AGENCY 20012600 ECONOMIC DEVELOPMENT 10020000 POLICE - GEN FUND 20012800 EMERGENCY MANAGEMENT 10020210 POLICE PATROL 20013210 ACCOUNTS PAYABLE
10020214 POLICE VOLUNTEERS 20013220 PAYROLL
10020216 COPS GRANT 20013400 ACCOUNTING
10020217 POLICE ANIMAL CONTROL 20013401 BUDGET MANAGEMENT 10020218 POLICE CSO 20014000 CITY ATTORNEY
10020220 CODE ENFORCEMENT 20015100 CITY TREASURER
10020224 MAJOR CRIMES TASK FORCE 20016100 HUMAN RESOURCES 10021210 CITY FIRE 20023510 HOUSING GRANTS
10022100 PARKS 20023520 NON-HOUSING GRANTS
10022300 AQUATICS 20100000 WORKER'S COMP FUND
10022700 MUSEUM - GEN FUND 20116220 WORKERS COMPENSATION 10022810 RECREATION ADMINISTRATION 20200000 LIABILITY FUND 10022821 ADULT BASKETBALL 20216200 RISK MANAGEMENT
10022822 ADULT SOFTBALL 20300000 GARAGE FUND
10022824 CO-ED VOLLEYBALL 20324100 GARAGE
10022831 YOUTH BASKETBALL 20324110 FLEET MAINTENANCE
10022832 YOUTH SOFTBALL 20400000 PURCHASING FUND
10022840 DAY CAMP 20413500 PURCHASING
10022850 CLASSES & CLINICS 20413510 CAPITAL ASSET MANAGEMENT 10022860 SPECIAL ACTIVITIES 20413520 GRANTS AND SPECIAL PROJECTS 10022900 COMM SVCS SPECIAL SERVICES 20414000 LEGAL SERVICES/EXPENSES 10023100 PLANNING SERVICES 20500000 BILLING AND COLLECTION FUND 10023110 CURRENT PLANNING 20513300 UTILITY BILLING
10023300 BUILDING INSPECTION 20513380 METERING-ELECTRIC 10023320 BUILDING INSPECTION 20513382 METERING-WATER
10023411 CDBG GENERAL ADMIN 20600000 PUBLIC SAFETY DISPATCH FUND 10024200 ENGINEERING/STREETS 20620231 POLICE UKIAH DISPATCH 10024210 ENGINEERING 20620232 POLICE FT BRAGG DISPATCH
10024214 TRAFFIC SIGNAL OPERATIONS 20700000 PAYROLL POSTING FUND 10024224 STORM WATER 20800000 BUILDING & MAINTENANCE
10024310 CORP YARD MAINTENANCE 20822500 BUILDING & MAINTENANCE 10024620 STREETS 20824300 BLDG MAINT CORP YARD
10100000 GF- (SUB-FUND) VISIT UKIAH 20900000 IT FUND
10112700 GF-(SUB-FUND) VISIT UKIAH 20913900 INFORMATION TECHNOLOGY 10500000 MEASURE S GENERAL FUND 22000000 FIXED ASSET FUND 10521210 FIRE AUTHORITY 25100000 SPECIAL PROJECTS RESERVE FUND 12000000 STREET REHABILITATION 25300000 PROP 172 FUND
12024200 PUBLIC WORKS ENGINEERING 25321210 CITY FIRE
13000000 GOV'TL DEBT SVC/RESERVE FUND 30000000 PARK DEVELOPMENT FEES FUND 20000000 CITY ADMINISTRATIVE SERVICES 30022200 PARK DEVELOPMENT 20010000 CITY COUNCIL 30100000 ANTON STADIUM FUND
20012100 CITY MANAGER 30200000 OBSERVATORY PARK FUND
20012200 ADMINISTRATIVE SUPPORT 30300000 PLAYGROUND & PARK AMENITIES FU 20012300 COMMUNITY OUTREACH/PUBLIC INFO 30322230 PLAYGROUND AND PARK AMENITIES

Account Code Summary Attachment 2
30400000 SWIMMING POOL FUND 63820210 ASSET FORFEITURE 11470 EXPENDI 30522250 RIVERSIDE PARK 63900000 SPECIAL REVENUE POLICE 30600000 SKATE PARK FUND 64000000 PKG. DIST. #1 OPER & MAINT FUN 30700000 SOFTBALL COMPLEX FUND 64012600 ECONOMIC DEVELOPMENT 31100000 ARRC GENERAL OPERATING FUND 64020213 POLICE PARKING ENFORCEMENT 31122000 ARRC 67000000 FEDERAL AMERICAN RESCUE FUNDS
31200000 DOWNTOWN BUSINESS IMPROVEMENT 69500000 TRANSFER STATION 31212600 ECONOMIC DEVELOPMENT 69624000 SOLID WASTE MITIGATION FUND 31300000 LMIHF HOUSING ASSET FUND 70000000 SANITARY DISPOSAL SITE FUND 31323400 HOUSING 70024500 LANDFILL 700
31323431 LMI GENERAL ADMIN 70124500 LANDFILL CORRECTIVE 31500000 ADVANCED PLANNING FUND 70200000 DISPOSAL CLOSURE RESERVE FUND 31523100 COMMUNITY PLANNING 70224500 LANDFILL CLOSURE
50000000 GAS TAX FUND 70400000 POST CLOSURE FUND-SOLID WASTE 50024214 TRAFFIC SIGNAL OPERATIONS 71000000 AMBULANCE SERVICES FUND 50500000 SIGNALIZATION FUND 71021100 AMBULANCE SERVICES 50800000 SB325 REIMBURSEMENT FUND 72000000 GOLF FUND
50824210 SB325 ENGINEERING 72022400 GOLF
50900000 S.T.P. 73000000 CONFERENCE CENTER FUND
50924210 STP ENGINEERING 73022600 CONFERENCE CENTER
51100000 RAIL TRAIL FUND 77700000 AIRPORT FUND
51124210 Rail Trail 77714000 CITY ATTORNEY
60000000 COMM. DEVELOPMT. BLOCK GRANT F 77725200 AIRPORT OPERATIONS 60023411 CDBG GENERAL ADMIN 77800000 AIRPORT CAPITAL IMPROVEMENT FU 60023412 CDBG ACTIVITY DELIVERY 77825200 AIRPORT CAPITAL 61100000 CDBG 16-CDBG-11147 77900000 SPECIAL AVIATION FUND 61112600 CDBG ECONOMIC DEVELOPMENT 77925200 AIRPORT SPECIAL 61123410 16-CDBG-11147 80000000 ELECTRIC FUND
61123411 CDBG GENERAL ADMIN 80014000 CITY ATTORNEY
61200000 FUND 612 UNASSIGNED 80026110 ELECTRIC OVERHEAD 61223400 HOME CDD HOUSING 80026120 ELECTRIC UNDERGROUND 61223422 HOME ACTIVITY DELIVERY 80026200 TELEMETRY & CALIBRATION 61323400 HOME HOUSING ACTIVITIES 80026210 SUBSTATION
61323421 HOME GENERAL ADMIN 80026220 HYDROELECTRIC PLANT 62000000 CASP CERTIF & TRAINING 80026400 ELECTRIC ADMINISTRATION 62023320 CASP CERTIF & TRAINING 80026440 POWER PURCHASES 63000000 ASSET SEIZURE FUND 80100000 ELECTRIC CAPITAL RESERVE FUND 63020210 ASSET SEIZURE EXPENDITURE 80126100 ELECTRIC CIP 63300000 H&S EDUCATION 11489(B)(2)(A1) 80126220 HYDROELECTRIC PLANT 63320210 H&S ASSET SEIZURE EXPENDITURE 80500000 STREET LIGHTING FUND 63400000 FEDERAL ASSET SEIZURE GRANTS F 80526150 STREET LIGHTING 63420250 FED ASSET SEIZURE EXPENDITURE 80600000 PUBLIC BENEFITS CHARGES FUND 63500000 SUP.LAW ENFORCE.SVC.FD(SLESF) 80626450 PUBLIC BENEFITS 63520210 SLESF 80700000 ELECTRIC CAP AND TRADE FUND
63600000 CBTHP OFFICER 80800000 ELECTRIC LOW CARBON FUEL STDS 63620210 CBTHP OFFICER 80826100 ELECTRIC LOW CARBON FUEL STDS 63800000 ASSET FORFEITURE 11470.2 H&S F 82000000 WATER FUND

Account Code Summary Attachment 2
82027110 WATER
82027111 PROD OPERATIONS & MAINTENANCE
82027114 DISTRIB OPERATIONS & MAINT
82100000 WATER CAPITAL RESERVE FUND
82200000 WATER CONNECTION FEE FUND
82227113 WATER DISTRIBUTION CAPITAL
83000000 RECYCLED WATER
83027330 RECYCLED WATER
84000000 CITY/DIST. SEWER OPERATING FUN
84027220 WASTE WATER
84027221 CITY WASTE O & M
84027225 WASTE TREATMENT O & M
84100000 SEWER BOND DEBT SERVICE FUND
84127226 WASTEWATER TREATMENT CAPITAL
84200000 RATE STABILIZATION-CITY FUND
84300000 CONNECTION FEE SEWER FUND (CAP
84400000 CITY SEWER CAPITAL PROJECTS FU
84427221 CITY WASTEWATER O&M 844
84427222 CITY WASTE CAPITAL
90000000 SPECIAL DEPOSIT TRUST FUND
91500000 UKIAH VALLEY FIRE DEPARTMENT
91521400 UVFD FIRE ADMINISTRATION
91600000 UVFD PROP 172
91621400 UVFD PROP 172
91700000 UVFD MEASURE B UNASSIGNED
91721400 UVFD FIRE
91800000 UVFD MITIGATION FEES
91821400 UVFD MITIGATION
96900000 REDEVELOPMENT OBLIGATION RETIR
96917200 SUCCESSOR AGENCY
96995669 969 - RDA OBLIGATION RETIREMEN

51211 PERS UNFUNDED LIABILITY 54101 POSTAGE
51220 INSURANCE 54102 SMALL TOOLS
51230 WORKERS COMP 54103 LAB SUPPLIES
51240 MEDICARE 54106 SPECIALTY SUPPLIES
51260 FICA 54107 EMS SUPPLIES
51270 UNIFORM ALLOWANCE 54120 PW - SPECIAL SUPPLIES
51290 CELL PHONE STIPEND 54121 PW - ASPHALT CONCRETE
52100 CONTRACTUAL SERVICES 54122 PW - AGGREGATE BASE
52110 AMBULANCE BILLING 54124 PW - CONCRETE/SUPPLIES
52111 DEFIBRILLATOR MAINTENANCE 54125 PW - TRAFFIC PAINT 52112 M. S. OVERSIGHT 54126 PW-PREMARKS
52113 PLANNING STUDIES 54127 PW - SIGN POSTS/SHEETING
52114 COMPLIANCE STUDIES 54128 PW - COLD PATCH MATERIAL 52130 EDUCATIONAL & MARKETING MATL'S 54129 PW - TACK OIL 52131 ASSISTANCE TO SENIORS 54130 PW - SAFETY
52133 MONTHLY DISCOUNT PROGRAM 54131 PW - BARRICADES & CONES 52134 GENERAL ADMIN 54161 BACKGROUND & PHYSICALS
52135 ENERGY CONSERVATION PROGRAM 54162 ADVERTISING
52137 PUBLIC BENEFITS PROGRAM MGMT 54163 INTERVIEW SUPPLIES 52139 RESEARCH DEVELOPMENT & DEMO 54165 NEW EMPLOYEE FINGERPRINT 52150 LEGAL SERVICES/EXPENSES 54166 DOT TESTING PROGRAM 52151 EMPLOYEE BENEFIT ADMIN FEES 54167 EMPLOYEE DEVELOPMENT 52155 ACTIVITY DELIVERY 54169 LIVESCAN
52180 SECURITY SERVICES 54201 PRISONER EXPENSE
52181 VOLUNTEER EXPENSES 54202 MAJOR CRIME INVESTIGATIONS 52301 PROPERTY TAX ADMIN FEE 54203 RECRUITMENT
52304 LAFCO FEES AND PROP TAX EXP 54320 SOFTWARE
52500 TRUSTEE FEES 54330 COMPUTER AND TECHNOLOGY
52510 ADVERTISING & PROMOTION 54500 EQUIP RENTS AND LEASES 52515 ADVERTISING & PUBLICATION 54700 FINES & PENALTIES 52521 LIABILITY INSURANCE PREMIUM 55100 TELEPHONE
52522 LIABILITY & PROPERTY DEDUCT 55200 PG&E
52524 PROPERTY INSURANCE PREMIUM 55210 UTILITIES
52525 WORKER'S COMP. EXPENSE 56100 VEHICLE & EQUIPMENT MAINT. & R 52526 REMIF ASSESSMENT PAYMENTS 56112 EQUIPMENT PARTS FOR RESALE 52527 A.D.P. PREMIUM & DEDUCTIBLE 56120 EQUIPMENT MAINTENANCE & REPAIR 52528 LIABILITY INSURANCE 56125 LAB EQUIP-REPAIR & MAINT. 52529 EARTHQUAKE & FLOOD (DIC) 56130 EXTERNAL SERVICES
52532 SAFETY & TRAINING SUPPORT 56210 FUEL & FLUIDS
52533 UVFA RETIREE HEALTH INS 56300 BUILDING MAINT. & REPAIR 52600 RENT 56410 EQUIPMENT RENTAL - PRIVATE
52601 DATA STORAGE & CONNECTIVITY 56504 FACILITY MAINTENANCE & REPAIR 52602 RENTAL OF CITY PROPERTY 56600 AIRFIELD MAINTENANCE & REPAIR 52841 SUCCESSOR AGENCY ADMIN 57100 LEARNING AND DEVELOPMENT 53000 LAWSUIT SETTLEMENT 57101 CONF & TRAINING-AQUATICS 54100 SUPPLIES 57300 MEMBERSHIPS & SUBSCRIPTIONS
Object Code Summary Attachment 3

58101 NCPA PLANT GENERATION
58102 NCPA POWER PURCHASES
58103 NCPA TRANSMISSION
58104 NCPA MANAGEMENT SERVICES
58105 NCPA THIRD PARTY SALES
58202 CHEMICALS
58401 AVIATION FUEL
58410 GARAGE LUBRICANTS & PARTS
58510 REIMBURSABLE JOBS
59100 PROPERTY TAXES PAID
59101 FEES
59102 FRANCHISE FEES
59105 CONTRIBUTIONS TO OTHER AGENCY
59106 SENIOR TRASH SUBSIDY
59108 BANK FEES
59400 OTHER EXPENSES
59500 LOANS ISSUED
59502 SCHOLARSHIPS
61200 PURCHASING ALLOCATION
61300 BILLING & COLLECTION ALLOCATIO
61410 RENT ALLOCATION
61420 BUILDING MAINTENANCE ALLOCATIO
61422 IT ALLOCATION
61430 CORP YARD ALLOCATION
61500 INSURANCE ALLOCATION
61600 GARAGE ALLOCATION
61700 DISPATCH
62100 ADMIN & OVERHEAD ALLOCATION
63000 INTERFUND SERVICES USED
70101 LOAN PAYMENTS MADE
70102 BOND INTEREST EXPENSE
70103 LOAN INTEREST
70201 LOAN PRINCIPAL PAYMENTS
70202 BOND PRINCIPAL PAYMENTS
74500 CAPITAL LEASE PRINCIPAL
74501 CAPITAL LEASE INTEREST
80100 MACHINERY & EQUIPMENT
80210 LAND ACQUISITION
80220 BUILDING IMPROVEMENTS
80230 INFRASTRUCTURE
90100 LOAN PROCEEDS
90101 LOAN PAYMENT RECEIVED

Attachment 4

Agenda Item No: 7.b.

MEETING DATE/TIME: 2/2/2022
ITEM NO: 2022-1230

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

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

1. Public Spaces Commission Ordinance Introduced

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

Background: On January 19, 2022, the Ukiah City Council approved the introduction of the ordinance amending Article 1 of Division 1, Chapter 4 of the Ukiah City Code to reform the Paths, Open Space, and Creeks Commission (POSCC) and the Parks, Recreation and Golf Commission (PRGC) into the Public Spaces Commission (PSC).

Discussion: The intent in the reformation of the POSCC and PRGC into a new Public Spaces Commission (Attachment 1) is to focus on the Commission’s role as an avenue to foster a culture of informed public input on the wise use of public spaces and to make recommendations and provide advice to staff and Council based on broad and informed public input. A draft “Public Spaces Commission Community Outreach Plan” for improved processes to solicit public comment has been included in Attachment 2. Should Council adopt this ordinance, staff will present the attached draft Community Outreach Plan to the new commissioners for their consideration.

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

The PSC will have three primary functions. The first function will be to solicit, collate, and analyze public input, and provide Council advice and recommendations based on this input. The second function is to form shortterm “work groups” both among themselves as well as with members of the public to pursue areas of interest and to the benefit of effective City management. Ideally, all working groups should have a City Council member or staff member actively engaged on the working group. The third function will be an annual update to the Public Spaces Commission Community Outreach Plan (Attachment 2). The annual update to the plan will allow the PSC, in collaboration with staff and Council to continually work to improve the community input process.

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

Recommended Action: Adopt Ordinance amending Article 1 of Division 1, Chapter 4 of the Ukiah City Code to reform the Paths, Open Space, and Creeks Commission and the Parks, Recreation and Golf Commission into the Public Spaces Commission.

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

Attachment 1
1 ORDINANCE NO.

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

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

SECTION ONE. FINDINGS

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

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

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

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

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

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

SECTION TWO.

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

ARTICLE 1. PUBLIC SPACES COMMISSION
§1000 CREATION

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

All members of the Commission shall be appointed by the City Council. §1002 TERM OF OFFICE; VACANCIES
All appointments to this Commission shall be for a term of three (3) years.

Reappointments to the Commission shall be pursuant to Article 5 of this chapter. §1003 DUTIES AND POWERS
The Public Spaces Commission shall provide advice and recommendations to Council regarding 1) City-owned properties that are open to the public, free of charge, such as parks, paths, and public right-of-ways; 2) creeks within the City limits; 3) open spaces within and outside of the City limits that are undeveloped and conserved or in consideration of future conservation; 4) and the recreational uses of these spaces. In addition, the Public Spaces Commission shall have the power and duty to:

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

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

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

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

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

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

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

SECTION THREE.

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

SECTION FOUR.

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

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

Introduced by title only on January 19, 2022, by the following roll call vote:

AYES: Councilmembers Dueñas, Crane, Orozco, Rodin, and Mayor Brown NOES: None
ABSENT: None
ABSTAIN: None
Adopted on ___________, 2022, by the following roll call vote:

AYES:

NOES:

ABSENT:

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

1 Attachment 2

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

In support of the PSC mission, City staff will;

1. Convene Biannual Community Input Forums

2. Prepare a Quarterly Public Spaces E-Newsletter

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

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

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

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

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

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

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

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

Agenda Item No: 7.c.

MEETING DATE/TIME: 2/2/2022
ITEM NO: 2022-1245

AGENDA SUMMARY REPORT
SUBJECT: Report of Emergency Purchase Order #47685 Issued to Wipf Construction LLC for the Water Resources Department in the Amount of $38,500 to Replace Two Check Valves that Failed and Approve a Budget Amendment for Expenses in the 2021/2022 Fiscal Year Related to Equipment Maintenance and Repair using Water Resources Reserve Funds.

DEPARTMENT: Water Resources PREPARED BY: Mary Williamson, Buyer II PRESENTER: Consent Calendar
ATTACHMENTS:

1. Wipf Quotes 560, 561
Summary: Council will receive a report on PO #47685 issued to Wipf Construction LLC in the amount of $38,500 for the Water Resources Department for the emergency replacement of two check valves and will consider approving a budget amendment to the Water Operation and Maintenance Fund for possible expenses in the 2021/2022 Fiscal Year related to equipment maintenance and repair using the Water Resources Reserve Funds.

Background: Water Resources staff recently dewatered Pressure Zone One South reservoir (PZ1S) in order to assess seismic damage to the structure. PZ1S is an older facility and lacks appurtenances for typical dewatering procedures. As a result, some air was inadvertently introduced into the distribution system which damaged two privately owned check valves. As a result, the check valves need to be replaced.

Discussion: Staff requested and received two quotes, one for each location. The quote for the first location #560 is for the Social Services Office $21,000, and the quote for the second location #561 is for Friedman Brothers $17,500, for a total of $38,500. See Attachment 1.

The Water Operation and Maintenance Fund which is used for small day-to-day repairs is now depleted as a result of this expense. Staff is requesting a budget amendment in the amount of $38,500.00 to restore the Water Operation and Maintenance account. Water Resources Reserve Funds would be used to restore this account.

Note: The item has been referred to the City's Risk Manager and Insurance Claims Administrator. It is currently under review.

Recommended Action: Council will receive a report of Purchase Order #47685 issued to Wipf Construction LLC in the amount of $38,500, for the emergency replacement of two check valves and approve budget amendment to the Water Operation and Maintenance Fund for possible expenses in the 2021/2022 Fiscal Year related to equipment maintenance and repair.

BUDGET AMENDMENT REQUIRED: Yes
CURRENT BUDGET AMOUNT: 82027111.56120:-$2,976.20
PROPOSED BUDGET AMOUNT: 82027111.56120: $35,523.80
FINANCING SOURCE: Water Enterprise Reserve Funds
PREVIOUS CONTRACT/PURCHASE ORDER NO.: 47658
COORDINATED WITH: Sean White, Water & Sewer Director, and Mary Williamson, Buyer II

ATTACHMENT 1

Agenda Item No: 7.d.

MEETING DATE/TIME: 2/2/2022
ITEM NO: 2022-1270

AGENDA SUMMARY REPORT
SUBJECT: Award of Professional Services Agreement to On Duty Health for Annual National Fire Protection Association (NFPA) Compliant Physical Exams and Screenings for Fire Authority Staff in the Amount of $28,415.48.

DEPARTMENT: Fire PREPARED BY: Doug Hutchison, Fire Chief PRESENTER: Doug Hutchison- Fire Chief
ATTACHMENTS:

1. On Duty Health Proposal for Ukiah CA FD - 12-02-2021 Summary: The Council will consider awarding a Professional Services Agreement with On Duty Health in the amount of $28,415.48, for on-site National Fire Protection Association (NFPA) compliant physical exams and screenings for Fire Authority staff.

Background: The National Fire Protection Association's (NFPA) Standards 1500 and 1582 require and specify the necessary elements for annual medical screening of personnel assigned to firefighting duties.

Discussion: Firefighting is an inherently risky occupation with the risk of great bodily injury and death. In addition to the dangers posed by the fire and toxic substances themselves, the job by nature subjects firefighters to extreme physiological stress. That stress can exacerbate or, even cause, on its own, lifethreatening medical emergencies. For these reasons, the National Fire Protection Association (NFPA) requires all personnel assigned to firefighting duties to undergo annual medical examinations and screening to establish their fitness for duty and detect any underlying medical conditions that could put the firefighter at risk. In fact, the lack of these exams is often cited in National Institute of Occupational Safety and Health (NIOSH) Firefighter Line of Duty Death (LODD) reports as a contributing factor.

Another area of great concern is the ongoing and increasing incidence of occupationally related cancer in firefighters. According to NIOSH, firefighters have a 9% higher risk of cancer than the general population, and a 14% higher chance of dying. The International Association of Firefighters (IAFF) states that between 2015 and 2020, 70% of the firefighter LODD's were from occupational cancer.

With these risks to Ukiah Valley Fire Authority (UVFA) members in mind, the Fire Authority has established an annual medical exam and screening program to identify risk factors and undetected underlying health issues with prevention in mind.

The Fire Authority utilized the services of On Duty Health's on-site services last year with great success, and it was positively received by the UVFA members. Fortunately, in addition to the comprehensive services they have provided in the past, they are able to offer UVFA members the Galleri Multi-Cancer Early Detection Blood Test, which is capable of screening for 50+ types of cancer, many of which are not routinely screened for.

These exams and screenings have a decades-long track record of identifying undetected and underlying medical issues, often before the member even has serious symptoms, allowing early intervention and prevention of greater risk.

Attachment 1 is the proposal from On Duty Health.

Recommended Action: Approve the Professional Services Agreement with On Duty Health for annual NFPA compliant physicals and screenings for Fire Authority staff in the amount of $28,415.48.

BUDGET AMENDMENT REQUIRED: No
CURRENT BUDGET AMOUNT: 10521210.54161: $28,415
PROPOSED BUDGET AMOUNT: N/A
FINANCING SOURCE: N/A
PREVIOUS CONTRACT/PURCHASE ORDER NO.: N/A
COORDINATED WITH: Mary Horger, Financial Services Manager

Keeping Firefighters Healthy & Fit For Service

PROPOSAL FOR
Ukiah, CA Fire Department
NFPA-1582 Firefighter Health & Fitness Assessments
Prepared By: Greg Batla, CEO
Prepared For: Douglas Hutchinson, Chief
Proposed On: December 2, 2021
ATTACHMENT 1

Dear Chief Hutchinson,
Thank you for your request for proposal from On Duty Health regarding your upcoming annual firefighter health & fitness assessments. We take very seriously the high calling that it is to serve this critical population. And we’re confident that we’ll provide you with expert health assessments as well as excellent customer service.

Included in this proposal, you’ll find the outline of services we hope to provide your department.

We offer the full NFPA 1582, 1583 and WFI compliant annual assessment at your department. This includes a full body ultrasound screening, comprehensive labs every year, and we are utilizing the newest standards recommended by the NFPA, moving on from “Bruce Protocol” in favor of IAFF’s WFI (Wellness Fitness Initiative) protocol for maximal EKG stress testing with TRUE VO2 Max testing. We’re also fully electronic, meaning that each of your members gets a secure online portal through which they can track their health results year to year. And, every member gets our full assessment every year, with no age stratification.

We also hope to partner with you to offer continuing services such as return-to-duty assessments, new hire assessments, behavioral health support, nutrition counseling, physical therapy and fitness training. Consider us your one-stop-shop for all your fire health needs.

We are female and firefighter owned. In fact, our Chief Operating Officer is a fire chief with 25+ years in the industry, helping bring a firefighter-tailored experience and perspective to everything we do. Additionally, our system incorporates occupational health recommendations from many sources, including; NFPA, IAFF & IAFC, US Preventative Services Task Force, CDC, National Institute for Occupational Safety and Health, American College of Cardiology, American Heart Association, American College of Sports Medicine, OSHA, and the research and experience of our own health team.

Again, thank you for your request. I’m hopeful that we’ll be working together soon to help keep your firefighters healthy and fit for service. And please don’t hesitate to call or email us if you have any questions.

Warm regards,
Greg Batla
Chief Executive Officer
On Duty Health
512.655.3578
www.onduty.health
[email protected]
On Duty Health
First Responder Health Specialists
17130 Van Buren Blvd, Unit #849
Riverside, CA 92504
512.655.3578
[email protected]
Keeping firefighters healthy
and fit for service.

PROPOSAL/PURCHASE ORDER
Standard NFPA-1582 Annual Firefighter Fitness Assessments *Estimated Total: This total may increase or decrease depending on the number of firefighters due for their 5 year chest x-ray, medical director review as indicated (such as review of abnormal EKG findings with our Cardiologist, or review of abnormal ultrasound findings with our Radiologist), further testing as indicated, or other factors.

As such, a 7.5% contingency fund is shown, and is typically billed after the initial invoice.

Description Crew Unit Price Cost
Standard NFPA-1582/WFI Assessment 16 $699.00 $11,184.00 Discount (actual rate: $629/pp) 16 ($70.00) ($1,120.00) Comprehensive Labs & Urinalysis incl
Full Physical Assessment w/ Vision & Hearing incl
Maximal 12-lead EKG Treadmill Stress Test
w/ TRUE VO2 Max Testing incl
Muscular Endurance and Strength Analysis incl
Ultrasound Enhanced Cancer Screening incl
Behavioral Health Assessment incl
HazMat Testing (Heavy Metals Profile II +
Cholinesterase) 5 $198.00 $990.00
HazMat Discount 5 ($25.00) ($125.00)
Galleri Multi-Cancer Early Detection Test 16 $969.00 $15,504.00 *Estimated
Total $26,433.00
+Contingency $1,982.48
On Duty Health
First Responder Health Specialists
17130 Van Buren Blvd, Unit #849
Riverside, CA 92504
512.655.3578
[email protected]

BREAKDOWN OF SERVICES
Standard NFPA-1582/WFI Annual Firefighter Fitness Assessment Item Description Pricing
Comprehensive
Labs Urinalysis incl
CBC (Complete Blood Count w/differential) incl
CMP (Comprehensive Metabolic Panel) incl
Lipid Panel with LDL/HDL Ratio incl
A1C (Glucose/Hemoglobin Diabetes Test) incl
TSH (Thyroid Stimulating Hormone) incl
PSA (Prostate Specific Antigen - Men) [included over 40] incl FIT (Fecal Occult Blood Colorectal Cancer Screening) [included over 40] incl Physical
Assessment Comprehensive Physical incl
Vital Signs incl
Vision Test & Audiometry Exam incl
Skin Cancer Assessment incl
Personal Consult with Review of Results incl
Personalized Health Plan with Nutrition & Exercise Recommendations incl Behavioral Health Assessment with Questionnaires & Oral Examination incl Fitness
Assessment Pulmonary Function Test incl
Resting EKG incl
Maximal 12-Lead EKG Treadmill Stress Test using WFI Protocol incl TRUE VO2 Max Testing incl
Metabolic Analysis w/ Body Composition incl
Muscular Endurance Evaluation incl
Muscular Strength Evaluation incl
Flexibility Evaluation incl
Ultrasound
Enhanced Cancer
Screening
Includes ultrasound imaging of the heart with function, aorta & aortic valves, carotid arteries, thyroid, liver, pancreas, gall bladder, spleen, kidneys, bladder, pelvic (women), breast (women), testicular and prostate (men). incl
On Duty Health
First Responder Health Specialists
17130 Van Buren Blvd, Unit #849
Riverside, CA 92504
512.655.3578
[email protected]

ADDITIONAL SERVICES AVAILABLE
On Duty Health
First Responder Health Specialists
17130 Van Buren Blvd, Unit #849
Riverside, CA 92504
512.655.3578
[email protected]
Item Description Pricing
Cancer Labs Galleri Multi-Cancer Early Detection Blood Test (50+ cancers) $969.00 Cancer marker screening (CEA, CA 19-9, AFP, Amylase, Lipase) $99.00 CA-125 (ovarian cancer screening - women) $49.00
Cancer antigen 15-3 (CA 15-3) [breast cancer] $99.00
Other Labs COVID-19 Antibody Testing $99.00
Hepatitis A, B and C Test (Acute Hepatitis Panel) $49.00 QuantiFERON Gold TB (Blood test) $69.00
Medical Professionals Urine Drug Screen (12 drug panel) $69.00 Nicotine Screening (Urine) $29.00
HIV testing $39.00
Heavy Metals Profile I, Blood (arsenic, lead, mercury) $99.00 Heavy Metals Profile II, Blood (arsenic, cadmium, lead, mercury) $139.00 Cholinesterase (HazMat) testing $59.00
Testosterone levels $19.00
Radiology Chest X-ray: TB screening & chest masses. Reviewed by radiologist $99.00 Lumbar + spine X-ray (3 view). Reviewed by radiologist $99.00 Radiologist review for abnormal Ultrasound findings. With report. $99.00 Cardiology Cardiologist review for abnormal EKG findings. With report. $99.00 New Hire &
Return to Duty
Assessments
Available on an ongoing basis with regional scheduling
Pricing
based on
location,
volume,
frequency
and other
factors.

Call for
more
details
Mental Health
Support
Each health assessment comes standard with a written and oral behavioral health assessment, designed for firefighters. For continued support, we use counselors & therapists that are specifically trained to meet the needs of your firefighter with PTSD support and more. Can be offered on-site or through telemedicine.

Personal Training Our certified personal trainer can build individual or group packages to improve health outcomes through customized workout routines and demonstrations Nutrition
Counseling
Each health assessment comes standard with nutrition recommendations.

However, our licensed nutritionist can build individual or group packages to work with your members for guidance in meal planning, shopping, cooking, and more for enhanced health outcomes.

MASTER TERMS AND CONDITIONS
These Master Terms and Conditions (“MTC”) govern all use of the Services from On Duty Health (“Company”) by the “Customer”, as defined in the Proposal/Purchase Order (collectively the “Parties” and individually a “Party”).

1. Services. The Company shall provide the Customer’s employees with certain services (“Services”). Services consist of an annual Firefighter Physical/Fitness Assessment based on each member’s essential job functions as set forth in their applicable job description. “Fitness Assessment,” as defined by the National Fire Protection Association, includes a medical history evaluation, hands-on physical exam, blood analysis, urinalysis, vision testing, audiometry testing, pulmonary function testing, treadmill stress test with 12 lead EKG, cancer screening elements, in substantial compliance with NFPA 1582, NFPA 1583, and WFI (Wellness Fitness Initiative) standards.

2. Fee. The Customer shall pay the Company the fee set forth in the Proposal/Purchase Order for each Fitness Assessment. The Customer shall remit payment to the Company for all Services within thirty (30) days of receipt of the invoice. A 2% late fee charge will be assessed after 30 days, and for each month thereafter that the payment is delayed.

3. Modification and Cancellation of Purchase Order. The Customer may cancel or modify the Purchase Order, in whole or in part, without penalty prior to six (6) weeks out from the date set for receiving the Services. After this point, the Customer may not modify or cancel the Purchase Order and shall be responsible for the fees for all Services described in the Purchase Order. If Customer has an Employee(s) who will miss the assessments due to sickness or other reasons, the Customer will hold a “credit” for that Employee, and may work with Company to schedule them for their assessments at another time and place. This credit will remain valid for two hundred (200) days from the start date of the current series of assessments.

4. Employee List & Schedule. At least four (4) weeks before the Company performs the Services, the Customer shall provide the Company with a list of all employees that will receive the Services (based off of the “Roster Template” provided by the Company). At least two (2) weeks before the Company performs the Services, the Customer shall provide the Company with a Schedule of which Employees will be seen at what date and time (based off of the “Schedule Template” provided by the Company).

5. Equipment. The Company agrees to provide all equipment and supplies necessary for the assessments, EXCEPT for a treadmill. The Customer agrees to provide a properly functioning treadmill (with variable speed and variable incline) and adequate space for the assessments to be conducted.

On Duty Health
First Responder Health Specialists
17130 Van Buren Blvd, Unit #849
Riverside, CA 92504
512.655.3578
[email protected]

6. Location Reciprocity. The Customer agrees to allow a small number of members from other departments, if any, to be seen on their premises. This allows for make-up physicals if a member missed at a nearby department, return to duty or new hire physicals. As such, other nearby departments will be granting such reciprocity to The Customer.

7. Expected Price Increases. The pricing listed in the proposal is valid for one (1) year from the date listed on the cover sheet. Due to inflation, please expect a ~5% price increase each year (as per the Medical Price Index average), unless signing a multiyear contract.

8. Limitation of Liability. EXCEPT AS PROHIBITED BY LAW, IN NO EVENT SHALL

COMPANY BE LIABLE TO CUSTOMER FOR ANY INDIRECT, SPECIAL,

I N C I D E N T A L , EXEMPLARY , M U L T I P L E , P U N I T I V E O R

CONSEQUENTIAL DAMAGES OF ANY KIND, WHETHER BASED ON

CONTRACT, TORT (UNLESS WITHOUT LIMITATION NEGLIGENCE),

WARRANTY, GUARANTEE OR ANY OTHER LEGAL OR EQUITABLE

GROUNDS, EVEN IF COMPANY HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES.

FURTHER, EXCEPT AS PROHIBITED BY LAW, THE CUMULATIVE,
AGGREGATE LIABILITY OF COMPANY (INCLUDING ATTORNEYS’ FEES

AWARDED UNDER THIS AGREEMENT) TO THE CUSTOMER AND ANY

OTHER THIRD PARTIES FOR ALL CLAIMS, LIABILITIES AND DAMAGES

ARISING OUT OF OR RELATING TO THIS MTC, WHETHER IN CONTRACT

OR TORT OR BY WAY OF INDEMNITY OR OTHERWISE, SHALL NOT
EXCEED: THE FEES PAID BY THE CUSTOMER TO THE COMPANY FOR THE TWELVE (12) MONTHS IMMEDIATELY PRECEDING THE BREACH FOR WHICH THE DAMAGES ARE CLAIMED.

9. Notice. All notices hereunder must be in writing to the other Party. If to the Company, the notice shall be sent to:

Greg Batla
Chief Executive Officer
17130 Van Buren Blvd, Unit #849
Riverside, CA 92504
[email protected]

10. Amendments. No amendment to, modification of, or termination of this MTC will be effective unless it is in writing and signed by the Parties.

11. Force Majeure. The Company shall not be liable or responsible to the Customer, nor be deemed to have defaulted or breached this MTC, for any failure or delay in fulfilling or performing any term of this MTC when and to the extent such failure or delay is caused by or results from acts or circumstances beyond the reasonable control of the Company including, without limitation, acts of God, flood, fire, On Duty Health
First Responder Health Specialists
17130 Van Buren Blvd, Unit #849
Riverside, CA 92504
512.655.3578
[email protected]

earthquake, explosion, governmental actions, war, invasion or hostilities (whether war is declared or not), terrorist threats or acts, riot, or other civil unrest, national emergency, revolution, insurrection, epidemic, pandemic, lockouts, strikes or other labor disputes (whether or not relating to either party’s workforce), or restraints or delays affecting carriers or inability or delay in obtaining supplies of adequate or suitable materials, or telecommunication breakdown or power outage.

12. Agreement. In signing the Proposal/Purchase Order above, you agree to the entirety of terms and conditions set forth in this Master Terms And Conditions agreement.

On Duty Health
First Responder Health Specialists
17130 Van Buren Blvd, Unit #849
Riverside, CA 92504
512.655.3578
[email protected]

Agenda Item No: 11.a.

MEETING DATE/TIME: 2/2/2022
ITEM NO: 2022-1229

AGENDA SUMMARY REPORT
SUBJECT: The Ukiah City Council Will Receive a Financial Report of the Electric Utility and Consider Adoption of the Proposed Electric Rate Adjustments and Create a 100% Green Energy Rate by Resolution.

DEPARTMENT: Electric Utility PREPARED BY: Cindy Sauers, Assistant Electric Utility Director PRESENTER: Cindy Sauers, Electric Utility Director
ATTACHMENTS:

1. Graph Cash No Inc

2. Graph No Loan PGE Compare

3. Graph Loan PGE Compare

4. Cash with and without Loan

5. Rate Tables - Exhibit A to the Resolution

6. Resolution Adopting Electric Rate Schedule - See Attachment 5 for Exhibit A Summary: In accordance with Ukiah City Code Division 4, Chapter 6 Sections 3950 through 3957, the City Council will hold a public hearing on February 2, 2022, to receive the City Manager's Report on Electric Utility rates and consider the adoption, by resolution, of the proposed electric rate adjustments and creation of a 100% Green Energy Rate. Legal notices were published in accordance with City Code section 3953. The Agenda Summary Report and the City Manager's Report are to be considered the same report and have been amended hereto.

Background: The City of Ukiah's Electric Utility is a publicly owned, nonprofit utility, governed by the Ukiah City Council. The City Council provides oversight and direction and approves rates. As a municipal utility, all labor, maintenance, and capital improvement funds are covered by the rate revenue collected for providing electric service to customers. Ukiah's rates are, on average, 35% lower than other Mendocino County utilities.

In 2016, Council approved an electric rate increase that was implemented over a 5-year period. Prior to that increase, the Utility had not implemented a rate increase for close to 20 years. Recent years have brought significant challenges to the electric utility industry as a whole. The wildfires that have ravaged parts of Northern California have resulted in increased legislation and costs as utilities fund projects to reduce the chances of additional fires. The financial burden these projects have placed on utilities in a short period of time has increased costs across the board for all services. As part of the wildfire mitigation efforts, the Utility has budgeted several capital improvement projects, including plans to underground in higher fire threat areas on the west side of Ukiah. Although Staff has applied for grant funding to cover the bulk of these projects, the Utility is required to provide a percentage of matching funds. Additional maintenance funding has also been budgeted for vegetation management.

During the previous six years, the Utility had budgeted and planned one undergrounding project on Gobbi Street. Due to the expensive nature of undergrounding of electric facilities, the Utility typically budgets one project every 5-7 years. Underground projects and funding have been accelerated to complement major street reconstruction work, specifically, Oak Manor and State Street Phase 1 Undergrounding, with Phase II scheduled for 2022. The acceleration of these projects has impacted the Utility's budget significantly and doubled the capital output for undergrounding.

The Utility, along with other industries, has been impacted by the inflationary climate over the past year. The cost of materials has increased by more than 30%, with some items increasing a full 100%. These increases will require additional funding for both maintenance functions as well as capital projects.

Presently, the Utility's cash reserve is $3.6 million with a reserve target between $6.5 and $7.5 million. The reserve amount is necessary to ensure adequate funding for major equipment failures and provides for rate stabilization, ensuring solvency during energy market cost fluctuations. With the current capital improvement plans, maintenance, and labor expenses of the Utility, the cash reserve is projected to be reduced to unacceptable levels by the end of 2022 (Attachment 1).

Discussion: With continued increasing cost pressures, the Utility must increase revenue in order to keep up with maintenance, capital improvement, regulatory requirements, ambitious climate goals, and continue serving Ukiah customers at the level they have come to expect.

To meet the challenges and maintain appropriate cash flow resources, a phased rate increase is proposed over 5 years. In order to provide a phased approach, staff is recommending seeking a bond issuance to finance capital projects to avoid a significant first year increase related to cash flow needs related to such projects (Attachment 2). These bond proceeds applied to fund capital project costs will allow a smoothing of the rate increases covering operational costs over the 5 year period (Attachment 3), with a first year average residential bill increase of approximately $7/month and average small commercial bill increasing approximately $29/month.

Staff intends to return to Council later in February with additional details on the bond issuance plan, including requesting authorization to proceed with the financing strategy. The Council has considered the strategy already, but final details are contingent on this rate adjustment consideration.

A total of five adjustments, with the first starting April 1, 2022, along with a loan, will provide adequate cash reserves by 2026 (Attachment 4). Rate tables for all rate classes are included (Attachment 5 - Exhibit A to the Resolution). This approach provides a change per year approximating inflation. Under California Proposition 26, court rulings have indicated that electric rates must meet the cost of service requirements. A cost of service of the electric rate classes shows that the phased approach of the across the board rate increases will meet Proposition 26 requirements. Staff will continue to evaluate the financial condition of the Utility yearly to ensure that the revenues are adequately covering the expenses. During the yearly review, staff will prepare and provide a summary report to Council.

Additionally, the Utility is adding a new Green Energy Rate Rider. A rider is a supplemental charge to specific customer rates where the cost of service is not recovered through the base rates. The Ukiah 100% Green Energy Rate is available to all customers for an additional 2.021 cents per kilowatt hour for using 100% green energy. Under the Green Energy Rate, the City will procure, on the customer's behalf, renewable energy resources to match the customer's monthly energy consumption. The funds collected in this rider will be earmarked for the purchase or creation of renewable generation resources for the City.

To maintain adequate reserves, continue with the Utility's fire mitigation efforts and capital improvement projects, the City Manager, Staff and the Electric Rate Ad Hoc committee recommend proceeding with the proposed electric rate adjustments by Resolution (Attachment 6 - see Attachment 5 for Exhibit A) and obtaining a loan.

Recommended Action: Receive financial report of the Electric Utility and approve the proposed electric rate adjustments and create a 100% Green Energy Rate by Resolution.

BUDGET AMENDMENT REQUIRED: No
CURRENT BUDGET AMOUNT: N/A

PROPOSED BUDGET AMOUNT: N/A
FINANCING SOURCE: N/A
PREVIOUS CONTRACT/PURCHASE ORDER NO.:

COORDINATED WITH: Sage Sangiacomo, City Manager; David Rapport, City Attorney

Attachment 1

Attachment 2

Attachment 3

Attachment 4

Attachment 5
P a g e 1 | 5
City of Ukiah Electric Rates
Residential Service Electric Rate E1, E2*
(The amended rates will apply to the first full month’s consumption following the rate’s effective date) BASELINE QUANTITIES (kWh PER MONTH)
Basic Service (E1)
WINTER
(Nov 1-Apr 30)
360
SUMMER
(May 1 -Oct 31)
360
All Electric E2* 660

360
*All Electric Rate E2 was closed to new customers effective 1/1/2017. Current customers will be allowed to stay on the rate no matter how they qualified. Other rate discounts and or adjustments to baseline quantities for various programs such as but not exclusive of senior and life support will remain the same. The minimum charge will be billed if the sum of the basic and the energy charges are less than the minimum charge amount.

Kwh less than
Baseline
($/kWh)
kWh equal to or
Greater than
Baseline
($/kWh)
Less than
200 kWh per
month
201-550
kWh per
month
Greater than
550 kWh per
month
1 April 1,2022 $0.14797 $0.19395 $1.00 $1.75 $2.75 $5.00 2 April 1, 2023 $0.16009 $0.20983 $2.00 $3.19 $4.56 $5.00 3 April 1, 2024 $0.17344 $0.22733 $3.00 $4.63 $6.38 $5.00 4 April 1, 2025 $0.18837 $0.24691 $4.00 $6.06 $8.19 $5.00 5 April 1, 2026 $0.20493 $0.26861 $5.00 $7.50 $10.00 $5.00 Mimimun
monthly
charge
Residential Service Electric Rate E1, E2*
Rate Year
Rate
effective
date
Energy kWh Charge Monthly Fixed Charge - per KWH level

Attachment 5
P a g e 2 | 5
City of Ukiah Electric Rates
Small Commercial Service Electric Rate E5, E6, C5, C6
This rate schedule is applicable to general commercial and non-commercial residential lighting, heating and all single phase and three phase alternating current loads in which energy use is less that 144,000 kWh per meter for 12 consecutive months. This schedule will not be applicable to commercial uses permitted by the City under a Home Occupation Permit.

WINTER (Nov 1 – Apr 30)
SUMMER (May 1 – Oct 31)
*New electric accounts with intermittent loads (used infrequently) and disconnected within the last 12 months shall be charged $50 in addition to all other new account fees Winter Summer E5/C5 E6/C6
1 April 1, 2022 $0.16090 $0.20010 $15.50 $16.50
2 April 1,2023 $0.17619 $0.21911 $17.21 $18.32
3 April 1,2024 $0.19292 $0.23992 $19.10 $20.33
4 April 1, 2025 $0.21125 $0.26272 $20.91 $22.26
5 April 1, 2026 $0.23132 $0.28768 $22.90 $24.38
Small Commercial Service Electric Rate E5, E6, C5, C6
Rate Year
Rate
effective
date
Energy Charge ($/kWh) Monthly fixed charge ($)

Attachment 5
P a g e 3 | 5
City of Ukiah Electric Rates
Medium/Large Commercial Service with Demand Electric Rate E7, C7 This rate is applicable to commercial and non-residential lighting, heating, and all single phase and three phase loads in which energy use is 144,000 kWh or greater per meter for 12 consecutive months. The customer bill will consist of a basic month charge, energy and demand charges.

Demand Charge
The customer will be billed for demand according to the customer’s “maximum kilowatt demand” each month. The number of kilowatt (kW) used will be recorded over 15- m i n u te intervals: the highest 15-minute average kW use in the month will be the customer’s maximum demand.

WINTER (Nov 1 – Apr 30)
SUMMER (May 1 – Oct 31)
Winter Summer Winter Summer
1 April 1, 2022 $0.11139 $0.13834 $5.48 $8.10 $114.62
2 April 1, 2023 $0.12108 $0.15037 $6.42 $8.85 $137.54
3 April 1,2024 $0.13260 $0.16470 $7.03 $9.69 $150.61
4 April 1, 2025 $0.14520 $0.18030 $7.70 $10.61 $164.92
5 April 1, 2026 $0.15900 $0.19740 $8.43 $11.62 $180.59
Rate
effective
date
Energy Charge ($/kWh) Demand Charge ($/kW)
Monthly
Fixed Charge
($)
Medium/Large Commercial Service with Demand Electric Rate E7, C7 Rate Year

Attachment 5
P a g e 4 | 5
City of Ukiah Electric Rates
Industrial Service with Demand Electric Rate I1
Thisschedule is applicable to large industrial production, lighting, heating and allsingle and three phase loads in which energy use is an average of 75,000 kWh monthly or greater with a demand of 200 kW monthly or greater for at least six consecutive months (multiple meters at a single location will be combined).

The Industrial rate is applicable to large manufacturing facilities, defined as businesses or corporations that produce products for either wholesale or retail sales or businesses that contract to fulfill obligations to produce specific components.

Demand Charge
The customer will be billed for demand according to the customer’s “maximum kilowatt demand” each month. The number of kilowatt (kW) used will be recorded over 15- m i n u t e intervals: the highest 15-minute average kW use in the month will be the customer’s maximum demand.

WINTER (Nov 1 – Apr 30)
SUMMER (May 1 – Oct 31)
Winter Summer Winter Summer
1 April 1, 2022 $0.08608 $0.11300 $5.29 $8.10 $143.27
2 April 1, 2023 $0.09426 $0.12374 $5.92 $8.83 $179.09
3 April 1,2024 $0.10320 $0.13550 $6.48 $9.67 $196.10
4 April 1, 2025 $0.11300 $0.14840 $7.10 $10.59 $214.73
5 April 1, 2026 $0.12370 $0.16250 $7.77 $11.60 $235.13
Industrial Service with Demand Electric Rate I1 (Replaces EI Rate) Rate Year
Rate
effective
date
Energy Charge ($/kWh) Demand Charge ($/kW)
Monthly
Fixed Charge
($)

Attachment 5
P a g e 5 | 5
City of Ukiah Electric Rates
Ukiah Green Energy Program
For customers wishing to promote the development and use of renewable energy; the City of Ukiah offers a 100 % Green electric rate. This rate is available to all Ukiah electric customers.

The City will procure, on the customer’s behalf, Renewable Energy to match the customer’s monthly energy consumption. Customers choosing the Green Rate will incur an additional

2.021 cents per kWh for every kWh consumed during the billing period. The 100% Green Rate will be updated yearly and will be based on renewable energy cost, delivery costs and imposed fees. Customers may opt into the program anytime and may opt out any time after the second complete billing cycle on the program. 100% Green Energy Rate
Program: Ukiah Green Energy Rate: Billing Period:

Ukiah Green Energy 0.02021 per kWh Monthly

RESOLUTION NO. 2022-

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF UKIAH ADOPTING ELECTRIC

UTILITY RATE SCHEDULE ADJUSTMENTS FOR FIVE-YEAR PERIOD COMMENCING APRIL 1, 2022.

WHEREAS: The City of Ukiah (“City”) provides electric utility services to residents and businesses in the City and Ukiah Electric Utility is the City’s publicly owned electric utility with the City Council providing local governance and oversight; and WHEREAS: The City has operated the municipal utility for more than 110 years and the electric rates are based on the cost to provide service; and WHEREAS: The electric energy costs for the citizens of Ukiah are significantly lower than what others pay in Mendocino county; and
WHEREAS: In accordance with the Ukiah City Code Division 4, Chapter 6, Sections 3950 through 3957, the City Council will hold a public hearing on February 2, 2022, to receive the City Manager’s Report on electric utility energy rates and consider adoption by resolution of proposed electric rate increases. Legal notices were published successfully in accordance with City Code section 3953; and
WHEREAS: Since 2017, the electric utility has experienced cost pressures brought upon by fire mitigation efforts, increased energy and transmission costs, accelerated capital undergrounding projects, and inflation. During this period of accelerated system investment, reserves have been reduced to $3.6 million, with a target reserve of $6.5 to $7.5 million; and WHEREAS: The electric utility continues to face increasing cost pressures due an inflationary climate coupled with accelerated capital improvement and maintenance efforts to continue fire mitigation work, undergrounding of facilities, and maintenance of the system to improve resiliency; and
WHEREAS: To meet these challenges and increase the cash reserve to acceptable levels, a phased rate increase over five years will be implemented. Five rate adjustments will be implemented starting on April 1, 2022, with four remaining rate changes that will be implemented every year on April 1st through 2026. Under California Proposition 26, court rulings have indicated that electric rates must meet cost of service requirements. A cost of service of the electric rate classes shows that the phased approach of the across-the-board rate increases will meet Proposition 26 requirements; and WHEREAS: Customers desire to reduce their greenhouse gas emissions and purchase 100% green energy, the Ukiah 100% Green Energy Rate is being established. The utility will procure, on the customer’s behalf, renewable energy resources to match the customer’s monthly energy consumption. The Ukiah 100% Green Energy Rate will be available to all customers for an additional 2.021 cents per kilowatt hour; and WHEREAS: The City Manager, staff and the Electric Rate Ad-Hoc committee recommend proceeding with proposed electric rate adjustments outlined on Attachment 5 of the City Manager’s Report (Exhibit A); and

WHEREAS: Beginning with the April 1, 2022, rate adjustment and in April every year thereafter, the Electric Department shall conduct a review of the rates to determine whether the annual adjustments adequately account for the actual increases or decreases of the Utility’s reasonable operating costs.

NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Ukiah hereby adopts the Proposed Electric Rates, as set forth in Exhibit A.

BE IT FURTHER RESOLVED that the rate schedule adopted by this Resolution shall be effective on April 1, 2022, unless otherwise ordered by the City Council on February 2, 2022.

All prior rate schedules in conflict herewith are repealed upon the effective date of the new schedule. All other contract conditions for service remain unaltered and in full effect and the City Clerk shall cause the publication of this resolution in the Ukiah Daily Journal within 10 days following Council action on February 2, 2022, pursuant to the provisions of Section 3957 of the Ukiah City Code.

PASSED AND ADOPTED at a regular meeting of the City Council of the City of Ukiah on the 2 nd day of February 2022, by the following roll call vote:

AYES:

NOES:

ABSENT:

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

Agenda Item No: 11.b.

MEETING DATE/TIME: 2/2/2022
ITEM NO: 2022-1284

AGENDA SUMMARY REPORT
SUBJECT: Conduct a Public Hearing and Consider Adopting Respective Resolutions Authorizing Lease Revenue Bonds, Series 2022 to Renovate the City Corporation Yard and Construct Improvements to Various City Streets (This item was continued from January 19, 2022.) DEPARTMENT: Finance PREPARED BY: Dan Buffalo, Finance Director PRESENTER: Dan Buffalo, Finance Director
ATTACHMENTS:

1. 1 Ukiah City Reso- Lease

2. 2 Ukiah Authority Reso- Issue Bonds

3. 3 Site Lease - Ukiah

4. 4 Lease Agreement - Ukiah

5. 5 Indenture - Ukiah

6. 6 Assignment Agmt - Ukiah

7. 7 POS (Ukiah LRBs)

8. 8 Bond Purchase Agreement (Piper Sandler)
Summary:

The City Council will consider adopting respective resolutions authorizing lease revenue bonds, Series 2022 to renovate the City Corporation Yard and construct improvements to various city streets. The terms and the amounts presented in this report are subject to change. This item has been placed on the agenda to allow Council the ability to consider authorization should it be deemed warranted.

Note: Staff recently received word from CalTrans that the City is eligible to participate in the Local Partnership Program, and Staff is currently examining funding strategies and formulating options for Council's consideration. This review will likely alter the financing amounts presented in this report and an updated recommendation will be presented at the meeting.

Background: The City has developed a capital financing strategy to take advantage of current municipal financial market rates to engage in and complete certain capital projects at a lower cost than other ordinary alternatives. It intends to issue debt to finance these projects, funded primarily by the general fund, most notably resources derived from Measure Y. Proceeds from the Lease Revenue Bonds, Series 2022 (the “Bonds”) will be used to renovate the City’s Corporation Yard and construct improvements to various city streets.

The Corporation Yard is the base of operations for the City Fleet and Plant Maintenance Facility, Street Maintenance Crew, Water and Wastewater Maintenance Crew, and Electric Utility Maintenance Crew. The estimated renovation cost is $15 million.

The streets projects primarily consist of improvements to certain streets, rights-of-way reconstruction, and related underground utility projects, as follows: Dora Street: reconstruct Mill to Grove streets and overlay Upper Luce Avenue to Mill Street; Gobbi Street: reconstruct from Highway 101 to Dora Street; Main Street:
reconstruct from Gobbi to Norton streets; Perkins Street: Main Street to Hwy. 101; Dora and State Streets:
overlay Beacon Lane to Washington Avenue; Clara Avenue: reconstruct/overlay from State Street to North

Orchard Avenue; and Low Gap Road: reconstruct/overlay from State to Bush Streets. The estimated streets project cost for the identified work is $30 million ($20.7 million for streets and $9.3 million for street utilities).

The City has expressed its intention to issue municipal tax-exempt bonds to pay the costs associated with renovating the City’s Corporation Yard and constructing improvements to various city streets.

City staff worked with its municipal advisor (NHA Advisors, LLC) to develop a financing plan and engage bond counsel (Jones Hall), an underwriter (Piper Sandler), and other parties to complete the financing.

The Ukiah Public Financing Authority (the “Authority”) will be used as the conduit entity to assist in the financing as the counterparty to the various legal agreements and as issuer of the Bonds in an aggregate amount of not-to-exceed Forty-Eight Million Dollars ($48,000,000). It is anticipated that the Corporation Yard component of the Bonds will be repaid over a 30-year term, the utilities component repaid over a 20-year term, and the streets component repaid over a 10-year term. As a result, annual debt service on the Bonds is estimated to be approximately $3.4 million through FY 2031-32, approximately $2.1 million from FY 2032-33 through FY 2032-33, and approximately $1.05 million through the remaining term of the Bonds (FY 2051-52).

A public hearing on this item was scheduled on December 15, 2021 originally, but was continued to January 19, 2022, then further continued to February 2, 2022. Staff informed Council that a potential funding opportunity for streets had presented itself and needed further evaluation. Through the CalTrans Local Partnership Program the City may have an opportunity to leverage existing City funds (currently planned for encumbrance against a bond issue) as a match for state grant funding. Staff recently received word from CalTrans that the City is eligible to participate in the program, and Staff is currently examining funding strategies and formulating options for Council's consideration. This review will likely alter the financing amounts presented in this report and an updated recommendation will be presented at the meeting.

Discussion: The Financing Documents are being presented to the City Council as “form-only documents.” The final form of the documents will be produced at this time because the exact amounts, dates, and certain other information will not be known until the actual sale date. The resolutions (Attachments #1 and #2) authorize and direct certain City and Authority officers and Staff respectively to finalize the Financing Documents as and when appropriate, and to do all things necessary to provide for the issuance of the Bonds.

If the final terms for any reason should fall outside of expected parameters, Staff will return for further direction before finalizing the transaction.

The Financing Documents, and a brief description of each, is as follows:

Attachment #3. Site Lease: This is the agreement between the City and Authority, which provides the mechanism of leasing the Leased Assets, respectively, to the Authority so that they can be leased back pursuant to the respective Lease Agreements.

Attachment #4. Lease Agreement: This agreement provides for the lease of the Leased Assets, respectively, back to the City in exchange for Lease Payments commensurate with the debt service schedule for the Bonds.

Under the Lease Agreement, the City is pledging its General Fund to make the annual Lease Payments for the life of the Bonds.

The Lease Agreement, among other things, provides the following:
• That the City must include Lease Payments due each Fiscal Year in each corresponding annual budget and make the necessary annual appropriations for all such Lease Payments. • That the City must, at its sole cost and expense, keep and maintain the Site and Facilities in a clean, safe, and good condition and repair.
• That the City shall have the option at any time to substitute other real property in place of the Site and Facilities (i.e., the City has the right to substitute the collateral of the lease transaction), provided that the City

is able to first satisfy all of the requirements set forth in Section 3 of the Lease Agreement. • That the City must procure and maintain throughout the term of the financing, the insurance set forth in Section 5 of each Lease Agreement.
• That the obligation of the City to pay Lease Payments shall be abated during any period in which by reason of any damage, destruction or condemnation there is substantial interference with the use and occupancy of the Leased Assets or any portion thereof by the City.
• That upon termination or expiration of a Lease Agreement, and the first date upon which the respective Bonds are no longer outstanding, all right, title and interest in and to the respective Leased Asset shall vest in the City.
• That the Authority covenants that, prior to the discharge of a Lease Agreement and the corresponding series of Bonds, it will diligently maintain its status as a joint powers authority under the laws of the State of California, and will not engage in any activities inconsistent with the purposes for which the Authority is organized.

Attachment #5. Indenture of Trust: This agreement provides for execution and delivery of the Bonds in exchange for proceeds in the par amount of the Bonds, and further lays out the covenants and specifics of the Bonds, as well as the Trustee’s duties, repayment mechanisms, default and remedies provisions, and Bondholder’s associated rights and remedies.

Attachment #6. Assignment Agreement: This agreement provides the terms and conditions under which the Authority assigns the City’s Lease Payments to the Trustee, for ultimate payment to the Bondholders.

Attachment #7. Preliminary Official Statement: The offering document that discloses to prospective investors certain information that would aid in and investors decision to purchase the Bonds. The current version of the Official Statement (OS) as attached to this staff report is the Preliminary Official Statement. The OS outlines the terms of the sale of the Bonds, security for the Bonds, interest rate, obligations of the City and Authority, information about the City, and potential risks of purchasing the Bonds.

Attachment #8. Bond Purchase Agreement: In this agreement, the underwriter (Piper Sandler) agrees to purchase all the Bonds provided that the terms and conditions set forth therein are satisfied. Piper Sandler will then sell the Bonds to investors.

TIMING:

Assuming approval of the resolutions by the City and the Authority, City Staff and its financing team will deliver a credit rating presentation to S&P Global Ratings (S&P) in mid-December. S&P will provide a public credit rating for the Bonds. Upon receipt of the credit rating, Staff anticipates that the Bonds will be sold to investors in mid-January, at which time, a final interest rate will be locked. Delivery of funds is expected in late January.

FINANCIAL IMPACT:

The annual debt service on the Bonds is estimated to be approximately $3.4 million through FY 2031-32, approximately $2.1 million from FY 2032-33 through FY 2032-33, and approximately $1.05 million through the remaining term of the Bonds (FY 2051-52).

GOOD FAITH ESTIMATES:

The following information consists of estimates that have been provided by the Municipal Advisor (NHA Advisors, LLC) and has been represented by such party to have been provided in good faith:

1. True Interest Cost of the Bonds: 2.80%

2. Finance Charge of the Bonds (sum of all fees/charges paid to third parties): $456,325

3. Net Proceeds of the Bonds to be Received (net of finance charges, reserves and capitalized interest, if any): $45,025,000

4. Total Payment Amount through Maturity of the Bonds: $65,252,941 The foregoing constitute good faith estimates only. The principal amount of the Bonds, the true interest cost of the Bonds, the finance charges thereof, the amount of proceeds received therefrom and total payment amount with respect thereto may differ from such good faith estimates due to: (a) the actual date of the sale of the Bonds being different than the date assumed for purposes of such estimates; (b) the actual principal amount of Bonds sold being different from the estimated amount used for purposes of such estimates; (c) the actual amortization of the Bonds being different than the amortization assumed for purposes of such estimates; (d) the actual market interest rates at the time of sale of the Bonds being different than those estimated for purposes of such estimates; (e) other market conditions; or (f) alterations in the City’s financing plan, or a combination of such factors.

The actual date of sale of the Bonds and the actual principal amount of Bonds sold will be determined by the City based on a variety of factors. The actual interest rates borne by the Bonds may be subject to change from what is presented above and that may have an impact on the amortization of the Bonds.

Recommended Action: Adopt resolutions authorizing the issuance of lease revenue bonds and authorizing the City Manager to execute all related documents for the renovation of the City Corporation Yard and improvements to various City streets.

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: NHA Advisors

RESOLUTION 2022-____

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF UKIAH AUTHORIZING A

LEASE FINANCING AND APPROVING THE ISSUANCE AND SALE OF LEASE

REVENUE BONDS BY THE UKIAH PUBLIC FINANCING AUTHORITY TO FINANCE

PUBLIC CAPITAL IMPROVEMENTS, AND APPROVING RELATED DOCUMENTS

AND OFFICIAL ACTIONS RELATED THERETO
WHEREAS, the City of Ukiah desires to renovate its Corporation Yard and construct improvements to various City streets (collectively, the “Project”); and WHEREAS, the Ukiah Public Financing Authority (the “Authority”) was formed to, among other things, assist the City with financing public capital improvements, including the Project; and
WHEREAS, in order to provide financing for the Project, the City has agreed to lease certain real property, consisting of city streets (the “Leased Property”), to the Authority as provided in a Site Lease, as defined herein; and
WHEREAS, in order to fund its payment obligation under the Site Lease, the Authority proposes to issue and sell its Lease Revenue Bonds, Series 2022 (Capital Projects) (the “Bonds”) under Article 4 of Chapter 5, Division 7, Title 1 of the Government Code of the State of California, commencing with Section 6584 of said Code (the “Bond Law”); and WHEREAS, in order to secure the payments of principal of and interest on the Bonds, the Authority proposes to lease the Leased Property back to the City under a Lease Agreement (the “Lease Agreement”), under which the City is obligated to pay semiannual lease payments as rental for the Leased Property, and the Authority will assign substantially all of its rights under the Lease Agreement to The Bank of New York Mellon Trust Company, National Association, as trustee for the Bonds; and WHEREAS, to provide for development of the most favorable debt structure for the City and to ensure the most favorable reception in the marketplace for the Bonds, the City has requested the Authority to sell the Bonds through a negotiated sale pursuant to the terms of a Bond Purchase Agreement (the “Bond Purchase Agreement”) between the Authority, the City and Piper Sandler , as underwriter (the “Underwriter”); and WHEREAS, for purposes of the sale of the Bonds, the City has caused to be prepared an Official Statement describing the Bonds, the preliminary form of which is on file with the City Clerk and the Council, with the aid of their staff, have undertaken such review of the Official Statement as hereinafter described as is necessary to assure proper disclosure of all material facts relating to the Bonds that are within the personal knowledge of Council members and the staff; and
WHEREAS, as required by Section 6586.5 of the California Government Code, the City has caused publication of a notice of a public hearing on the financing of the public capital improvements included within the Project once at least five (5) days prior to the hearing in a newspaper of general circulation in the City; and
Attachment 1

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WHEREAS, the Council held a public hearing at which all interested persons were provided the opportunity to speak on the subject of financing such public capital improvements; and
WHEREAS, the information required to be obtained and disclosed by the City Council related to the Bonds pursuant to Government Code Section 5852.1 is set forth in the staff report accompanying this Resolution; and
WHEREAS, the Council wishes at this time to approve all proceedings of the City relating to the foregoing;
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Ukiah, as follows:

Section 1. The Council hereby approves the issuance of the Bonds by the Authority under the Bond Law in a maximum principal amount not to exceed $48,000,000, for the purpose of financing the Project. The Council hereby finds that issuance of the Bonds by the Authority for the purpose of financing the Project will result in significant public benefits of the type described in Section 6586 of the California Government Code, including, but not limited to, a more efficient delivery of City services to residential and commercial developments within the City and demonstrable savings in effective interest rate, bond preparation, bond underwriting and/or bond issuance costs.

Section 2. The Council hereby approves each of the following agreements required for the issuance and sale of the Bonds, in substantially the respective forms on file with the City Clerk together with any changes therein or additions thereto deemed advisable by the Mayor, Vice Mayor, City Manager, Finance Director, or a designee appointed by such person (each, an “Authorized Officer”), whose execution thereof shall be conclusive evidence of the approval of any such changes or additions. An Authorized Officer is hereby authorized and directed for and on behalf of the City to execute, and the City Clerk is hereby authorized and directed to attest, the final form of each such agreement, as follows:
• Site Lease, between the City as lessor and the Authority as lessee, under which the City leases the Leased Property to the Authority in consideration of the payment of an upfront amount which will be applied by the City to the Project;
• Lease Agreement, between the Authority as lessor and the City as lessee, under which the Authority leases the Leased Property back to the City and the City agrees to pay semiannual lease payments to provide revenues with which to pay principal of and interest on the Bonds when due; and
• Continuing Disclosure Certificate, to be executed by the City for the purpose of providing annual financial information and notice of certain enumerated events to holders and beneficial owners of the Bonds.

Section 3. The Council hereby approves the negotiated sale of the Bonds by the Authority to the Underwriter. The Bonds shall be sold pursuant to the terms and provisions of the Bond Purchase Agreement among the Authority, the City and the Underwriter in Attachment 1

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substantially the form on file with the City Clerk together with any changes therein or additions thereto deemed advisable by an Authorized Officer. The principal amount of the principal obligation of the City under the Lease Agreement shall not exceed $48,000,000, the true interest cost of the Bonds shall not exceed 3.25% and the Underwriter’s discount shall not exceed 0.7%.

Section 4. The Council hereby approves the preliminary Official Statement describing the Bonds in substantially the form on file with the City Clerk. An Authorized Officer is hereby authorized and directed to approve any changes in or additions to said preliminary Official Statement, and to execute an appropriate certificate stating the City’s determination that the preliminary Official Statement (together with any changes therein or additions thereto) has been deemed nearly final within the meaning of Rule 15c2-12 of the Securities Exchange Act of 1934. Distribution of the preliminary Official Statement by the Underwriter is hereby approved. An Authorized Officer is hereby authorized and directed to approve any changes in or additions to a final form of said Official Statement, and the execution thereof by an Authorized Officer shall be conclusive evidence of approval of any such changes and additions. The Council hereby authorizes the distribution of the final Official Statement by the Underwriter. The final Official Statement shall be executed on behalf of the City by an Authorized Officer.

Section 5. The firm of NHA Advisors LLC is hereby retained as municipal advisor to the City in connection with the issuance and sale of the Bonds by the Authority. An Authorized Officer is authorized to execute an agreement with said firm in a form as approved by an Authorized Officer, as necessary.

Section 6. The firm of Jones Hall, A Professional Law Corporation, is hereby retained as bond counsel and disclosure counsel to the City in connection with the issuance and sale of the Bonds by the Authority. An Authorized Officer is authorized to execute an agreement with said firm in a form as approved by an Authorized Officer, as necessary.

Section 7. The Authorized Officers, the City Attorney, the City Clerk and all other officers of the City are each authorized and directed on behalf of the City to make any and all leases, assignments, certificates, requisitions, agreements, notices, consents, instruments of conveyance or termination, warrants and other documents, which they or any of them deem necessary or appropriate in order to consummate any of the transactions contemplated by the agreements and documents approved under this Resolution. An Authorized Officer may revise the identity of the Leased Property (including by adding thereto) as necessary in order to accomplish the purposes of this Resolution. Whenever in this Resolution any officer of the City is authorized to execute or countersign any document or take any action, such execution, countersigning or action may be taken on behalf of such officer by any person designated by such officer to act on his or her behalf in the case such officer is absent or unavailable.

Attachment 1

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Section 8. This Resolution shall take effect immediately upon its passage and adoption. * * * * * * * * *
PASSED AND ADOPTED by the City Council of the City of Ukiah on __________, 2022 by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:
__________________________
Jim Brown, Mayor
ATTEST:
__________________________
Kristine Lawler, City Clerk
Attachment 1

RESOLUTION NO. PFA 2022-____

A RESOLUTION OF THE BOARD OF DIRECTORS OF THE UKIAH PUBLIC

FINANCING AUTHORITY AUTHORIZING THE ISSUANCE AND SALE OF LEASE

REVENUE BONDS TO FINANCE PUBLIC CAPITAL IMPROVEMENTS, AND

APPROVING RELATED DOCUMENTS AND OFFICIAL ACTIONS RELATED

THERETO
WHEREAS, the Ukiah Public Financing Authority (the “Authority”) was formed to, among other things, assist the City of Ukiah (the “City”) with financing public capital improvements, including capital projects of the City; and WHEREAS, the City desires to renovate its Corporation Yard and construct improvements to various City streets (collectively, the “Project”); and WHEREAS, in order to provide financing for the Project, the City has agreed to lease certain real property, consisting of certain city streets (the “Leased Property”), to the Authority as provided in a Site Lease, as defined herein; and WHEREAS, in order to fund its payment obligation under the Site Lease, the Authority proposes to issue and sell its Lease Revenue Bonds, Series 2022 (Capital Projects) (the “Bonds”) under Article 4 of Chapter 5, Division 7, Title 1 of the Government Code of the State of California, commencing with Section 6584 of said Code (the “Bond Law”); and WHEREAS, in order to secure the payments of principal of and interest on the Bonds, the Authority proposes to lease the Leased Property back to the City under a Lease Agreement (the “Lease Agreement”), under which the City is obligated to pay semiannual lease payments as rental for the Leased Property, and the Authority will assign substantially all of its rights under the Lease Agreement to The Bank of New York Mellon Trust Company, National Association, as trustee for the Bonds; and WHEREAS, to provide for development of the most favorable debt structure for the City and to ensure the most favorable reception in the marketplace for the Bonds, the City has requested the Authority to sell the Bonds through a negotiated sale pursuant to the terms of a Bond Purchase Agreement (the “Bond Purchase Agreement”) between the Authority, the City and Piper Sandler & Co. as underwriter (the “Underwriter”); and WHEREAS, for purposes of the sale of the Bonds, the City has caused to be prepared an Official Statement describing the Bonds, the preliminary form of which is on file with the Secretary and the Board of Directors, with the aid of their staff, have undertaken such review of the Official Statement as hereinafter described as is necessary to assure proper disclosure of all material facts relating to the Bonds that are within the personal knowledge of members of the Board of Directors and the staff; and WHEREAS, as required by Section 6586.5 of the California Government Code, the City has caused publication of a notice of a public hearing on the financing of the public capital improvements included within the Project once at least five (5) days prior to the hearing in a newspaper of general circulation in the City; and Attachment 2

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WHEREAS, the City Council of the City held a public hearing at which all interested persons were provided the opportunity to speak on the subject of financing such public capital improvements; and
WEREAS, the information required to be obtained and disclosed by the Board of Directors related to the Bonds pursuant to Government Code Section 5852.1 is set forth in the staff report accompanying this Resolution; and
WHEREAS, the Board wishes at this time to approve all proceedings of the Authority relating to the foregoing.

NOW, THEREFORE, IT IS HEREBY DETERMINED AND RESOLVED BY THE

BOARD OF DIRECTORS OF THE UKIAH PUBLIC FINANCING AUTHORITY AS FOLLOWS:

Section 1. The Board of Directors hereby authorizes the issuance of the Bonds under the Bond Law in a maximum principal amount not to exceed $48,000,000, for the purpose of financing the Project. The Bonds shall be issued under the Bond Law and the Indenture of Trust that is approved below.

Section 2. The Board hereby approves each of the following agreements required for the issuance and sale of the Bonds, in substantially the respective forms on file with the Secretary together with any changes therein or additions thereto deemed advisable by the Chair, Vice Chair, Executive Director, Treasurer, or a designee appointed by such person (each, an “Authorized Officer”), whose execution thereof shall be conclusive evidence of the approval of any such changes or additions. Such changes or additions may include, but is not limited to, providing that payment of the Bonds be insured by a financial guaranty policy from a bond insurance company and/or secured by a reserve surety policy, if in the judgment of an Authorized Officer such insurance and/or reserve surety policy is in the best interest of the Authority. An Authorized Officer is hereby authorized and directed for and on behalf of the Authority to execute, and the Secretary is hereby authorized and directed to attest, the final form of each such agreement, as follows:
• Indenture of Trust, between the Authority and The Bank of New York Mellon Trust Company, National Association, as trustee (the “Trustee”), setting forth the terms and provisions relating to the Bonds; • Site Lease, between the City as lessor and the Authority as lessee, under which the City leases the Leased Property to the Authority in consideration of the payment of an upfront amount which will be applied by the City to the Project;
• Lease Agreement, between the Authority as lessor and the City as lessee, under which the Authority leases the Leased Property back to the City and the City agrees to pay semiannual lease payments to provide revenues with which to pay principal of and interest on the Bonds when due; and
Attachment 2

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• Assignment Agreement, between the Authority and the Trustee, whereby the Authority assigns certain of its rights under the Lease Agreement to the Trustee for the benefit of the Bond owners.

Section 3. The Board of Directors hereby authorizes and directs the negotiated sale of the Bonds to the Underwriter. The Bonds shall be sold pursuant to the terms and provisions of the Bond Purchase Agreement among the Authority, the City and the Underwriter in substantially the form on file with the Secretary together with any changes therein or additions thereto deemed advisable by an Authorized Officer. The principal amount of the Bonds and related principal obligation of the Authority under the Site Lease Agreement shall not exceed $48,000,000, the true interest cost of the Bonds shall not exceed 3.25% and the Underwriter’s discount shall not exceed 0.7%.

Section 4. The Board of Directors hereby approves the preliminary Official Statement describing the Bonds in substantially the form on file with the Secretary. An Authorized Officer is hereby authorized and directed to approve any changes in or additions to said preliminary Official Statement and, if requested by the Underwriter, to execute an appropriate certificate stating the Authority’s determination that the preliminary Official Statement (together with any changes therein or additions thereto) has been deemed nearly final within the meaning of Rule 15c2-12 of the Securities Exchange Act of 1934.

Distribution of the preliminary Official Statement by the Underwriter is hereby approved.

An Authorized Officer is hereby authorized and directed to approve any changes in or additions to a final form of said Official Statement, and the execution thereof by an Authorized Officer shall be conclusive evidence of approval of any such changes and additions. The Board of Directors hereby authorizes the distribution of the final Official Statement by the Underwriter. The final Official Statement shall be executed on behalf of the Authority by the Chair or an Authorized Officer.

Section 5. The Authorized Officers, the General Counsel to the Authority, the Secretary and all other officers of the Authority are each authorized and directed on behalf of the Authority to make any and all leases, assignments, certificates, requisitions, agreements, notices, consents, instruments of conveyance or termination, warrants and other documents, which they or any of them deem necessary or appropriate in order to consummate any of the transactions contemplated by the agreements and documents approved under this Resolution. An Authorized Officer may revise the identity of the Leased Property (including by adding thereto) as necessary to accomplish the purposes of this Resolution. Whenever in this resolution any officer of the Authority is authorized to execute or countersign any document or take any action, such execution, countersigning or action may be taken on behalf of such officer by any person designated by such officer to act on his or her behalf if such officer is absent or unavailable.

Section 6. This Resolution shall take effect immediately upon its passage and adoption. * * * * * * * * *
THE FOREGOING RESOLUTION WAS PASSED AND ADOPTED by the Board of Directors of the Ukiah Public Financing Authority at a regular meeting held on this _____________, 2022 by the following roll call vote:

AYES:

Attachment 2

- 4 -
NOES:

ABSENT:

ABSTAIN:

__________________________
Jim Brown, Chair of the Ukiah Public
Financing Authority
ATTEST:
__________________________
Kristine Lawler, Secretary of the Ukiah Public Financing Authority Attachment 2

Jones Hall Draft 1.11.22

SITE LEASE
Dated as of February 1, 2022
between the

CITY OF UKIAH,
as lessor
and the

UKIAH PUBLIC FINANCING AUTHORITY,
as lessee
Relating to
$______________
Ukiah Public Financing Authority
Lease Revenue Bonds, Series 2022
(Capital Projects)
Attachment 3

SITE LEASE
This SITE LEASE (this “Site Lease”), dated for convenience as of February 1, 2022, is between the CITY OF UKIAH, a municipal corporation duly organized and existing under the laws of the State of California, as lessor, which acquired a portion of the Leased Property as the City of Ukiah, California, a municipal corporation (a political subdivision organized and existing under the laws of the State of California) (the “City”), and the UKIAH PUBLIC FINANCING AUTHORITY, a joint exercise of powers authority organized and existing under the laws of the State of California, as lessee (the “Authority”).

BACKGROUND:

1. The City is proceeding to reconstruct its corporation yard and construct improvements to various City streets (collectively, the “Project”).

2. In order to provide funds to finance a portion of the costs of the Project, the City has agreed to lease the real property more particularly described in Appendix A attached hereto and by this reference incorporated herein, consisting of streets in the City (the “Leased Property”) to the Authority under this Site Lease, pursuant to which the Authority agrees to make an initial rental payment (as described herein, the “Site Lease Payment”) which is sufficient to provide funds for such purposes.

3. The Authority has authorized the issuance of its Ukiah Public Financing Authority 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 (the “Trustee”), for the purpose of providing the funds to enable the Authority to pay the Site Lease Payment to the City in accordance with this Site Lease.

4. In order to provide revenues which are sufficient to enable the Authority to pay debt service on the Bonds, the Authority has agreed to lease the Leased Property back to the City under a Lease Agreement dated as of February 1, 2022 (the “Lease”), which has been executed concurrently herewith, under which the City has agreed to pay semiannual Lease Payments as the rental for the Leased Property thereunder.

5. The lease payments made by the City under the Lease have been assigned by the Authority to Trustee for the security of the Bonds under an Assignment Agreement dated as of February 1, 2022, between the Authority as assignor and the Trustee as assignee, which has been executed concurrently herewith.

Attachment 3

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AGREEMENT:

In consideration of the above premises and of the mutual promises and covenants herein contained and for other valuable consideration, the parties hereto do hereby agree as follows:

SECTION 1. Lease of Property to Authority. The City hereby leases the Leased Property to the Authority and the Authority hereby leases the Leased Property from the City, on the terms and conditions hereinafter set forth.

SECTION 2. Term; Possession. The term of this Site Lease commences on the Closing Date and ends on the date on which the Indenture is discharged in accordance with Section 13.01 thereof, but under any circumstances not later than April 1, _____.

The provisions of this Section 2 are subject in all respects to any other provisions of this Site Lease relating to the termination hereof.

SECTION 3. Rental. The Authority shall pay to the City as and for rental of the Leased Property hereunder, the sum of $_________ (the “Site Lease Payment”). The Site Lease Payment is due and payable upon the issuance of the Bonds and the execution and delivery hereof, and will be paid from the proceeds of the Bonds. The Authority and the City hereby find and determine that the total amount of the Site Lease Payment does not exceed the fair market value of the leasehold interest in the Leased Property which is conveyed hereunder by the City to the Authority. No other amount of rental is due and payable by the Authority for the use and occupancy of the Leased Property under this Site Lease.

As provided in the Indenture, a portion of the proceeds of the Bonds will be applied to make the Site Lease Payment by depositing the full amount thereof into the Project Fund which is held and administered by the City under the Indenture. Amounts on deposit in the Project Fund shall be disbursed by the City from time to time for the purpose of paying Project Costs in accordance with the Indenture.

SECTION 4. Leaseback to City. The Authority shall lease the Leased Property back to the City under the Lease.

SECTION 5. Assignments and Subleases. Unless the City is in default under the Lease, the Authority may not assign its rights under this Site Lease or sublet all or any portion of the Leased Property, except as provided in the Assignment Agreement and in the Lease, without the prior written consent of the City.

SECTION 6. Substitution or Release of Property. If the City exercises its option under Section 3.3 of the Lease to substitute property for the Leased Property in whole or in part, such substitution shall also operate to substitute property for the Leased Property which is leased hereunder. If the City exercises its option under Section 3.4 of the Lease to release a portion of the Leased Property from the Lease, such substitution shall also operate to release such portion of the Leased Property hereunder. The description of the Leased Property which is leased under the Lease shall conform at all times to the description of the Leased Property which is leased hereunder.

SECTION 7. Right of Entry. The City reserves the right for any of its duly authorized representatives to enter upon the Leased Property, or any portion thereof, at Attachment 3

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any reasonable time to inspect the same or to make any repairs, improvements or changes necessary for the preservation thereof.

SECTION 8. Termination. The Authority agrees, upon the termination of this Site Lease, to quit and surrender the Leased Property in the same good order and condition as the Leased Property was in at the time of commencement of the term hereof, reasonable wear and tear excepted, and agrees that all buildings, improvements and structures then existing upon the Leased Property shall remain thereon and title thereto shall vest thereupon in the City for no additional consideration.

SECTION 9. Default. If the Authority defaults in the performance of any obligation on its part to be performed under the terms of this Site Lease, which default continues for 30 days following notice and demand for correction thereof to the Authority, the City may exercise any and all remedies granted by law, except that no merger of this Site Lease and of the Lease shall be deemed to occur as a result thereof and no such remedy may include termination hereof; provided, however, that so long as the Lease remains in effect, the Lease Payments payable by the City under the Lease shall continue to be paid to the Trustee.

SECTION 10. Quiet Enjoyment. The Authority at all times during the term of this Site Lease shall peaceably and quietly have, hold and enjoy all of the Leased Property, subject to the provisions of the Lease and subject only to Permitted Encumbrances (as that term is defined in the Lease).

SECTION 11. Waiver of Personal Liability. All liabilities under this Site Lease on the part of the Authority are solely corporate liabilities of the Authority as a public entity, and the City hereby releases each and every member and officer of the Authority of and from any personal or individual liability under this Site Lease. No member or officer of the Authority or its governing board shall at any time or under any circumstances be individually or personally liable under this Site Lease for anything done or omitted to be done by the Authority hereunder.

SECTION 12. Taxes. The City covenants and agrees to pay any and all assessments of any kind or character and also all taxes, including possessory interest taxes, levied or assessed upon the Leased Property and any improvements thereon.

SECTION 13. Eminent Domain. If the whole or any part of the Leased Property or any improvements thereon is taken by eminent domain proceedings, the interest of the Authority shall be recognized and is hereby determined to be the amount of the then unpaid Lease Payments payable under the Lease and the balance of the award, if any, shall be paid to the City.

SECTION 14. Partial Invalidity. If any one or more of the terms, provisions, covenants or conditions of this Site Lease shall to any extent be declared invalid, unenforceable, void or voidable for any reason whatsoever by a court of competent jurisdiction, the finding or order or decree of which becomes final, none of the remaining terms, provisions, covenants and conditions of this Site Lease shall be affected thereby, and each provision of this Site Lease shall be valid and enforceable to the fullest extent permitted by law.

Attachment 3

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SECTION 15. Notices. Any notice, request, complaint, demand or other communication under this Site Lease shall be given by first class mail or personal delivery to the party entitled thereto at its address set forth below, or by telecopy, telex or other form of telecommunication, at its number set forth below. Notice shall be effective either (a) upon transmission by telecopy, telex or other form of telecommunication, (b) 48 hours after deposit in the United States mail, postage prepaid, or (c) in the case of personal delivery to any person, upon actual receipt. The City, the Authority and the Trustee may, by written notice to the other parties, from time to time modify the address or number to which communications are to be given hereunder.

If to the City City of Ukiah
or the Authority: Attention: Finance Director
300 Seminary Avenue
Ukiah, CA 95482
If to the Trustee: The Bank of New York Mellon Trust Company, N.A.

Attention: Corporate Trust Administration
333 S. Hope Street, Suite #2525
Los Angeles, California 90071
SECTION 16. Amendment of this Site Lease. The Authority and the City may at any time amend or modify any of the provisions of this Site Lease, but only (a) with the prior written consent of the Owners of a majority in aggregate principal amount of the Outstanding Bonds; or (b) without the consent of any of the Bond Owners, but only if such amendment or modification is for any one or more of the following purposes:
(i) to make cure any ambiguity, or to cure, correct or supplement any defective provision contained herein, or in any other respect whatsoever as the Authority and the City may deem necessary or desirable, provided that, in the opinion of Bond Counsel, such modifications or amendments do not materially adversely affect the interests of the Owners of the Bonds;
(ii) to amend any provision hereof relating to the Tax Code, to any extent whatsoever but only if and to the extent such amendment will not adversely affect the exclusion from gross income of interest on the Bonds under the Tax Code, in the opinion of Bond Counsel; (iii) to conform to any amendment of the Indenture which is made thereto in accordance with Section 9.01 of the Indenture; or (iv) for the purpose of effectuating any substitution or release of property under Section 6.

SECTION 17. Governing Law. This Site Lease shall be construed in accordance with and governed by the laws of the State of California.

SECTION 18. Third Party Beneficiary. The Trustee is hereby made a third party beneficiary under this Site Lease with all rights of a third party beneficiary.

Attachment 3

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SECTION 19. Binding Effect. This Site Lease inures to the benefit of and is binding upon the Authority, the City and their respective successors and assigns, subject, however, to the limitations contained herein.

SECTION 20. Section Headings. All section headings contained herein are for convenience of reference only and are not intended to define or limit the scope of any provision of this Site Lease.

SECTION 21. Execution in Counterparts. This Site Lease may be executed in any number of counterparts, each of which shall be deemed to be an original but all together shall constitute but one and the same lease. It is also agreed that separate counterparts of this Site Lease may be separately executed by the Authority and the City, all with the same force and effect as though the same counterpart had been executed by both the Authority and the City.

SECTION 22. Defined Terms. All capitalized terms used herein and not otherwise defined have the respective meanings given those terms in the Indenture.

Attachment 3

[Signature Page to Site Lease dated as of February 1, 2022] IN WITNESS WHEREOF, the City and the Authority have caused this Site Lease to be executed by their respective officers thereunto duly authorized, all as of the day and year first above written.

UKIAH PUBLIC FINANCING AUTHORITY
as Lessor
By:

Daniel Buffalo
Treasurer

CITY OF UKIAH
as Lessee
By:

Daniel Buffalo
Finance Director
Attachment 3

A-1

APPENDIX A

DESCRIPTION OF THE LEASED PROPERTY
The Leased Property consists of that certain real property, together with all fixtures, equipment or other improvements located upon the real property, except as to the library as excluded below, situated in the City of Ukiah, County of Mendocino, State of California, described as follows:
[[All City Streets]]
Attachment 3

Jones Hall Draft 1.11.22

LEASE AGREEMENT
Dated as of February 1, 2022
between the

UKIAH PUBLIC FINANCING AUTHORITY,
as lessor
and the

CITY OF UKIAH,
as lessee
Relating to
$______________
Ukiah Public Financing Authority
Lease Revenue Bonds, Series 2022
(Capital Projects)
Attachment 4

-iTABLE OF CONTENTS
ARTICLE I:

DEFINITIONS; RULES OF INTERPRETATION:

SECTION 1.1. Definitions ....................................................................................................................2 SECTION 1.2. Interpretation................................................................................................................ 2 ARTICLE II:

COVENANTS, REPRESENTATIONS AND WARRANTIES:

SECTION 2.1. Covenants, Representations and Warranties of the City .............................................3 SECTION 2.2. Covenants, Representations and Warranties of the Board..........................................4 ARTICLE III:

DEPOSIT AND APPLICATION OF FUNDS; SUBSTITUTION

AND RELEASE OF PROPERTY
SECTION 3.1. Deposit of Moneys .......................................................................................................5 SECTION 3.2. Acquisition and Construction of Project .......................................................................5 SECTION 3.3. Substitution of Property................................................................................................6 SECTION 3.4. Release of Property .....................................................................................................6 ARTICLE IV:

LEASE OF LEASED PROPERTY; TERM OF THIS LEASE;
LEASE PAYMENTS:

SECTION 4.1. Lease of Leased Property............................................................................................7 SECTION 4.2. Term.............................................................................................................................7 SECTION 4.3. Lease Payments ..........................................................................................................7 SECTION 4.4. Source of Payments; Covenant to Budget and Appropriate ........................................8 SECTION 4.5. Additional Rental Payments.........................................................................................9 SECTION 4.6. Quiet Enjoyment ..........................................................................................................9 SECTION 4.7. Title ..............................................................................................................................9 ARTICLE V:

MAINTENANCE; TAXES; INSURANCE; AND OTHER
MATTERS:

SECTION 5.1. Maintenance, Utilities, Taxes and Assessments........................................................10 SECTION 5.2. Modification of Leased Property ................................................................................10 SECTION 5.3. Liability Insurance ......................................................................................................11 SECTION 5.4. Property Insurance.....................................................................................................11 SECTION 5.5. Insurance Net Proceeds; Form of Policies.................................................................11 SECTION 5.6. Installation of City’s Personal Property ......................................................................12 SECTION 5.7. Advances ...................................................................................................................12 ARTICLE VI:

DAMAGE, DESTRUCTION AND EMINENT DOMAIN; USE OF
NET PROCEEDS:

SECTION 6.1. Application of Net Proceeds.......................................................................................12 SECTION 6.2. Termination or Abatement Due to Eminent Domain ..................................................12 SECTION 6.3. Abatement Due to Damage or Destruction................................................................13 ARTICLE VII:

OTHER COVENANTS OF THE CITY:

SECTION 7.1. Disclaimer of Warranties............................................................................................13 SECTION 7.2. Access to the Leased Property ..................................................................................13 SECTION 7.3. Release and Indemnification Covenants ...................................................................14 SECTION 7.4. Assignment and Subleasing by the City ....................................................................14 SECTION 7.5. Amendment Hereof....................................................................................................15 Attachment 4

-iiSECTION 7.6. Tax Covenants...........................................................................................................16 SECTION 7.7. Continuing Disclosure ................................................................................................16 ARTICLE VIII:

EVENTS OF DEFAULT AND REMEDIES:

SECTION 8.1. Events of Default Defined ..........................................................................................17 SECTION 8.2. Remedies on Default .................................................................................................17 SECTION 8.3. No Remedy Exclusive................................................................................................18 SECTION 8.4. Agreement to Pay Attorneys' Fees and Expenses.....................................................18 SECTION 8.5. No Additional Waiver Implied by One Waiver............................................................18 SECTION 8.6. Application of Proceeds .............................................................................................18 SECTION 8.7. Trustee and Bond Owners to Exercise Rights ...........................................................18 ARTICLE IX:

PREPAYMENT OF LEASE PAYMENTS:

SECTION 9.1. Security Deposit.........................................................................................................19 SECTION 9.2. Prepayment................................................................................................................19 SECTION 9.3. Mandatory Prepayment From Net Proceeds of Insurance or Eminent Domain.......................................................................................................................19 SECTION 9.4. Credit for Amounts on Deposit...................................................................................20 ARTICLE X:

MISCELLANEOUS:

SECTION 10.1. Notices .......................................................................................................................20 SECTION 10.2. Binding Effect.............................................................................................................20 SECTION 10.3. Severability ................................................................................................................20 SECTION 10.4. Net-net-net Lease ......................................................................................................20 SECTION 10.5. Third Party Beneficiary...............................................................................................20 SECTION 10.6. Further Assurances and Corrective Instruments .......................................................21 SECTION 10.7. Execution in Counterparts..........................................................................................21 SECTION 10.8. Applicable Law...........................................................................................................21 SECTION 10.9. Board and City Representatives ................................................................................21 SECTION 10.10. Captions.....................................................................................................................21

APPENDIX A DESCRIPTION OF THE LEASED PROPERTY

APPENDIX B SCHEDULE OF LEASE PAYMENTS
Attachment 4

LEASE AGREEMENT
This LEASE AGREEMENT (this “Lease”), dated for convenience as of February 1, 2022, is between the UKIAH PUBLIC FINANCING AUTHORITY, a joint exercise of powers authority organized and existing under the laws of the State of California, as lessor (the “Authority”), and the CITY OF UKIAH, a municipal corporation duly organized and existing under the laws of the State of California, as lessee (the “City”).

BACKGROUND:

1. The City is proceeding to reconstruct its corporation yard and construct improvements to various City streets (collectively, the “Project”).

2. In order to provide funds to finance a portion of the costs of the Project, the City has agreed to lease the real property more particularly described in Appendix A attached hereto and by this reference incorporated herein, consisting of streets in the City (the “Leased Property”) to the Authority under a Site Lease dated as of February 1, 2022 which has been executed concurrently herewith (the “Site Lease”), under which the Authority agrees to make an initial rental payment (the “Site Lease Payment”) which is sufficient to provide funds for such purposes. The Leased Property is also subject to a lease entered into by the City (the “2020 Lease”) in connection with the Authority’s Lease Revenue Bonds, Series 2020A and Taxable Lease Revenue Bonds, Series 2020B, outstanding in the combined principal amount of $52,250,000 (the “2020 Bonds”).

3. The Authority has authorized the issuance of its Ukiah Public Financing Authority 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 (the “Trustee”), and under the provisions of Article 4 of Chapter 5, Division 7, Title 1 of the Government Code of the State of California, commencing with Section 6584 of said Code (the “Bond Law”), for the purpose of providing the funds to enable the Authority to pay the Site Lease Payment to the City in accordance with the Site Lease.

4. In order to provide revenues which are sufficient to enable the Authority to pay debt service on the Bonds, the Authority has agreed to lease the Leased Property back to the City under this Lease, under which the City agrees to pay semiannual Lease Payments as the rental for the Leased Property hereunder.

5. The lease payments made by the City under this Lease have been assigned by the Authority to the Trustee for the security of the Bonds under an Assignment Agreement dated as of February 1, 2022, between the Authority as assignor and the Trustee as assignee, which has been executed concurrently herewith.

6. The City and the Authority have found and determined that all acts and proceedings required by law necessary to make this Lease, when executed by the City and the Authority, the valid, binding and legal obligations of the City and the Authority, Attachment 4

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and to constitute this Lease a valid and binding agreement for the uses and purposes herein set forth in accordance with its terms, have been done and taken, and the execution and delivery of this Lease have been in all respects duly authorized.

AGREEMENT:

In consideration of the material covenants contained in this Lease, the parties hereto hereby formally covenant, agree and bind themselves as follows:

ARTICLE I
DEFINITIONS; RULES OF INTERPRETATION
SECTION 1.1. Definitions. Unless the context clearly otherwise requires or unless otherwise defined herein, the capitalized terms in this Lease have the respective meanings given them in the Indenture.

SECTION 1.2. Interpretation.
(a) Unless the context otherwise indicates, words expressed in the singular includes the plural and vice versa and the use of the neuter, masculine, or feminine gender is for convenience only and includes the neuter, masculine or feminine gender, as appropriate.
(b) Headings of articles and sections herein and the table of contents hereof are solely for convenience of reference, do not constitute a part hereof and do not affect the meaning, construction or effect hereof.
(c) All references herein to “Articles,” “Sections” and other subdivisions are to the corresponding Articles, Sections or subdivisions of this Lease; the words “herein,” “hereof,” “hereby,” “hereunder” and other words of similar import refer to this Lease as a whole and not to any particular Article, Section or subdivision hereof.

Attachment 4

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ARTICLE II

COVENANTS, REPRESENTATIONS AND WARRANTIES
SECTION 2.1. Covenants, Representations and Warranties of the City. The City makes the following covenants, representations and warranties to the Authority and the Trustee as of the date of the execution and delivery of this Lease:
(a) Due Organization and Existence. The City is a municipal corporation duly organized and validly existing under the laws of the State of California, has full legal right, power and authority under the laws of the State of California to enter into the Site Lease and this Lease and to carry out and consummate all transactions contemplated hereby, and by proper action the City has duly authorized the execution and delivery of the Site Lease and this Lease.
(b) Due Execution. The representatives of the City executing the Site Lease and this Lease have been fully authorized to execute the same under a resolution duly adopted by the City Council of the City. (c) Valid, Binding and Enforceable Obligations. The Site Lease and this Lease have been duly authorized, executed and delivered by the City and constitute the legal, valid and binding obligations of the City enforceable against the City in accordance with their respective terms. (d) No Conflicts. The execution and delivery of the Site Lease and this Lease, the consummation of the transactions therein and herein contemplated and the fulfillment of or compliance with the terms and conditions thereof and hereof, do not and will not conflict with or constitute a violation or breach of or default (with due notice or the passage of time or both) under any applicable law or administrative rule or regulation, or any applicable court or administrative decree or order, or any indenture, mortgage, deed of trust, lease, contract or other agreement or instrument to which the City is a party or by which it or its properties are otherwise subject or bound, or result in the creation or imposition of any prohibited lien, charge or encumbrance of any nature whatsoever upon any of the property or assets of the City, which conflict, violation, breach, default, lien, charge or encumbrance would have consequences that would materially and adversely affect the consummation of the transactions contemplated by the Site Lease and this Lease or the financial condition, assets, properties or operations of the City. (e) Consents and Approvals. No consent or approval of any trustee or holder of any indebtedness of the City or of the voters of the City, and no consent, permission, authorization, order or license of, or filing or registration with, any governmental authority is necessary in connection with the execution and delivery of the Site Lease and this Lease, or the consummation of any transaction therein and herein contemplated, except as have been obtained or made and as are in full force and effect.
(f) No Litigation. There is no action, suit, proceeding, inquiry or investigation before or by any court or federal, state, municipal or other governmental Attachment 4

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authority pending or, to the knowledge of the City after reasonable investigation, 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 Site Lease and this Lease, 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 and adversely affect the consummation of the transactions contemplated by the Site Lease and this Lease or the financial conditions, assets, properties or operations of the City.

SECTION 2.2. Covenants, Representations and Warranties of the Authority. The Authority makes the following covenants, representations and warranties to the City and the Trustee as of the date of the execution and delivery of this Lease:
(a) Due Organization and Existence. The Authority is a public body corporate and politic duly organized and existing under the Bond Law and under the laws of the State of California; has power to enter into this Lease, the Site Lease, the Assignment Agreement and the Indenture; is possessed of full power to own and hold, improve and equip real and personal property, and to lease the same; and has duly authorized the execution and delivery of each of the aforesaid agreements and such agreements constitute the legal, valid and binding obligations of the Authority, enforceable against the Authority in accordance with their respective terms.
(b) Due Execution. The representatives of the Authority executing this Lease, the Site Lease, the Assignment Agreement and the Indenture are fully authorized to execute the same pursuant to official action taken by the governing body of the Authority.
(c) Valid, Binding and Enforceable Obligations. This Lease, the Site Lease, the Assignment Agreement and the Indenture have been duly authorized, executed and delivered by the Authority and constitute the legal, valid and binding agreements of the Authority, enforceable against the Authority in accordance with their respective terms.
(d) No Conflicts. The execution and delivery of this Lease, the Site Lease, the Assignment Agreement and the Indenture, the consummation of the transactions herein and therein contemplated and the fulfillment of or compliance with the terms and conditions hereof, do not and will not conflict with or constitute a violation or breach of or default (with due notice or the passage of time or both) under any applicable law or administrative rule or regulation, or any applicable court or administrative decree or order, or any indenture, mortgage, deed of trust, lease, contract or other agreement or instrument to which the Authority is a party or by which it or its properties are otherwise subject or bound, or result in the creation or imposition of any prohibited lien, charge or encumbrance of any nature whatsoever upon any of the property or assets of the Authority, which conflict, violation, breach, Attachment 4

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default, lien, charge or encumbrance would have consequences that would materially and adversely affect the consummation of the transactions contemplated by this Lease, the Site Lease, the Assignment Agreement and the Indenture or the financial condition, assets, properties or operations of the Authority.
(e) Consents and Approvals. No consent or approval of any trustee or holder of any indebtedness of the Authority, and no consent, permission, authorization, order or license of, or filing or registration with, any governmental authority is necessary in connection with the execution and delivery of this Lease, the Site Lease, the Assignment Agreement or the Indenture, or the consummation of any transaction herein or therein contemplated, except as have been obtained or made and as are in full force and effect.
(f) No Litigation. There is no action, suit, proceeding, inquiry or investigation before or by any court or federal, state, municipal or other governmental authority pending or, to the knowledge of the Authority after reasonable investigation, threatened against or affecting the Authority or the assets, properties or operations of the Authority which, if determined adversely to the Authority or its interests, would have a material and adverse effect upon the consummation of the transactions contemplated by or the validity of this Lease, the Site Lease, the Assignment Agreement or the Indenture, or upon the financial condition, assets, properties or operations of the Authority, and the Authority 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 and adversely affect the consummation of the transactions contemplated by this Lease, the Site Lease, the Assignment Agreement or the Indenture or the financial conditions, assets, properties or operations of the Authority.

ARTICLE III
DEPOSIT AND APPLICATION OF FUNDS; SUBSTITUTION

AND RELEASE OF PROPERTY
SECTION 3.1. Deposit of Moneys. On the Closing Date, the Authority will cause the proceeds of sale of the Bonds to be deposited with the Trustee. The Trustee shall deposit those proceeds in accordance with Section 3.01 of the Indenture.

SECTION 3.2. Acquisition and Construction of Project. As provided in Section

3.02 of the Indenture, a portion of the proceeds of sale of the Bonds will be applied to pay the Site Lease Payment to the City in accordance with Section 3 of the Site Lease.

The Site Lease Payment shall be deposited into the Project Fund, which is established under the Indenture, to be disbursed for the purpose of paying Project Costs. Upon the completion of the Project, the City shall file a Written Certificate of the City with the Trustee, which Written Certificate shall identify the amount (if any) to be retained in the Project Fund to pay remaining Project Costs.

Attachment 4

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SECTION 3.3. Substitution of Property. The City has the option at any time and from time to time, to substitute other real property (the “Substitute Property”) for the Leased Property or any portion thereof (the “Former Property”), upon satisfaction of all of the following requirements which are hereby declared to be conditions precedent to such substitution:
(a) No Event of Default has occurred and is continuing. (b) The City has filed with the Authority and the Trustee sufficient memorialization of an amendment of this Lease, the Site Lease and the Assignment Agreement, which adds the legal description of the Substitute Property to Appendix A and deletes therefrom the legal description of the Former Property.
(c) The City has certified in writing to the Authority and the Trustee that the Substitute Property serves the municipal purposes of the City and constitutes property which the City is permitted to lease under the laws of the State of California, and has been determined to be important to the proper, efficient and economic operation of the City and to serve a proper governmental function of the City.
(d) The Substitute Property does not cause the City to violate any of its covenants, representations and warranties made herein.
(e) The City has filed with the Authority and the Trustee a written certificate of the City or other written evidence stating that the estimated fair rental value of the Leased Property following the substitution will be at least equal to the aggregate principal amount of the Bonds then outstanding, and that the useful life of the Substitute Property at least extends to the stated termination date of this Lease.

Upon the satisfaction of all such conditions precedent, the Term of this Lease will thereupon end as to the Former Property and commence as to the Substitute Property, and all references to the Former Property will apply with full force and effect to the Substitute Property. The City is not entitled to any reduction, diminution, extension or other modification of the Lease Payments whatsoever as a result of any substitution of property under this Section. The Authority and the City will execute and deliver all documents required to discharge the Site Lease, this Lease and the Assignment Agreement of record against the Former Property and to cause the Substitute Property to become subject to all of the terms and conditions of the Site Lease, this Lease and the Assignment Agreement.

SECTION 3.4. Release of Property. The City has the option at any time and from time to time to release any portion of the Leased Property from this Lease (the “Released Property”) provided that the City has satisfied all of the following requirements which are hereby declared to be conditions precedent to such release:
(a) No Event of Default has occurred and is continuing.

Attachment 4

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(b) The City has filed with the Authority and the Trustee, and caused to be recorded in the office of the Mendocino County Recorder, sufficient memorialization of an amendment of this Lease, the Site Lease and the Assignment Agreement, which removes the Released Property therefrom. (c) The City has certified in writing to the Authority and the Trustee that the value of the property which remains subject to this Lease following such release is at least equal to the then outstanding principal amount of the Bonds, and the fair rental value of the property which remains subject to this Lease following such release is at least equal to the Lease Payments thereafter coming due and payable hereunder.

Upon the satisfaction of all such conditions precedent, the Term of this Lease will thereupon end as to the Released Property. The City is not entitled to any reduction, diminution, extension or other modification of the Lease Payments whatsoever as a result of such release. The Authority and the City shall execute and deliver all documents required to discharge the Site Lease, this Lease and the Assignment Agreement of record against the Released Property.

ARTICLE IV
LEASE OF LEASED PROPERTY; TERM OF THIS LEASE;

LEASE PAYMENTS
SECTION 4.1. Lease of Leased Property. The Authority hereby leases the Leased Property to the City and the City hereby leases the Leased Property from the Authority, upon the terms and conditions set forth in this Lease.

SECTION 4.2. Term. The Term of this Lease commences on the Closing Date and ends on the date on which the Indenture is discharged in accordance with Section

10.01 thereof, but under any circumstances not later than April 1, ______. The provisions of this Section are subject to the provisions of Section 6.2 relating to abatement and the taking in eminent domain of the Leased Property in whole or in part.

SECTION 4.3. Lease Payments.
(a) Obligation to Pay. Subject to the provisions of Sections 6.2 and 6.3 and the provisions of Article IX, the City agrees to pay to the Authority, its successors and assigns, the Lease Payments in the respective amounts specified in Appendix B attached to this Lease, to be due and payable in immediately available funds on the Interest Payment Dates immediately following each of the respective Lease Payment Dates specified in Appendix B, and to be deposited by the City with the Trustee on each of the Lease Payment Dates specified in Appendix B. Any amount held in the Bond Fund, the Interest Account and the Principal Account on any Lease Payment Date (other than amounts resulting from the prepayment of the Lease Payments in part but not in whole under Article IX, and amounts required for payment of past due principal or interest on any Bonds not presented for payment) will be credited towards the Lease Payment then required to be paid hereunder. The City is not required to deposit any Lease Payment with the Trustee on any Lease Payment Date if the amounts then held in Attachment 4

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the Bond Fund, the Interest Account and the Principal Account are at least equal to the Lease Payment then required to be deposited with the Trustee. The Lease Payments payable in any Rental Period are for the use of the Leased Property during that Rental Period.
(b) Effect of Prepayment. If the City prepays all Lease Payments in full under Section 9.2, the City’s obligations under this Section will thereupon cease and terminate.

If the City prepays the Lease Payments in part but not in whole under Section 9.2, the principal components of the remaining Lease Payments will be reduced in integral multiples of $5,000 among Lease Payment Dates on a basis which corresponds to the principal maturities of the Bonds which are redeemed thereby; and the interest component of each remaining Lease Payment will be reduced by the aggregate corresponding amount of interest which would otherwise be payable with respect to the Bonds thereby redeemed under Section 4.01 of the Indenture. (c) Rate on Overdue Payments. If the City fails to make any of the payments required in this Section, the payment in default will continue as an obligation of the City until the amount in default has been fully paid, and the City agrees to pay the same with interest thereon, from the date of default to the date of payment at the highest rate of interest on any Outstanding Bond.
(d) Fair Rental Value. The aggregate amount of the Lease Payments and Additional Rental Payments coming due and payable during each Rental Period constitute the total rental for the Leased Property for such Rental Period, and are payable by the City in each Rental Period for and in consideration of the right of the use and occupancy of, and the continued quiet use and enjoyment of the Leased Property during each Rental Period. The parties hereto have agreed and determined that the total Lease Payments represent the fair rental value of the Leased Property. In making that determination, consideration has been given to the estimated value of the Leased Property, other obligations of the City and the Authority under this Lease, the uses and purposes which may be served by the Leased Property and the benefits therefrom which will accrue to the City and the general public.
(e) Assignment. The City understands and agrees that all Lease Payments have been assigned by the Authority to the Trustee in trust, under the Assignment Agreement, for the benefit of the Owners of the Bonds, and the City hereby assents to such assignment. The Authority hereby directs the City, and the City hereby agrees to pay to the Trustee at its Office, all payments payable by the City under this Section and all amounts payable by the City under Article IX.

SECTION 4.4. Source of Payments; Covenant to Budget and Appropriate. The Lease Payments are payable from any source of available funds of the City, subject to the provisions of Section 6.3. The City covenants to take all actions required to include the Lease Payments in each of its budgets during the Term of this Lease and to make the necessary appropriations for all Lease Payments and Additional Rental Payments.

The foregoing covenant of the City contained constitutes a duty imposed by law and each and every public official of the City is required to take all actions required by law in the performance of the official duty of such officials to enable the City to carry out and perform the covenants and agreements in this Lease agreed to be carried out and performed by the City.

Attachment 4

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SECTION 4.5. Additional Rental Payments. In addition to the Lease Payments, the City shall pay when due the following amounts of Additional Rental Payments in consideration of the lease of the Leased Property by the City from the Authority hereunder:
(a) All fees and expenses incurred by the Authority in connection with or by reason of its leasehold estate in the Leased Property, when due; (b) All reasonable compensation to the Trustee for all services rendered under the Indenture and for all reasonable expenses, charges, costs, liabilities, legal fees and other disbursements incurred in and about the performance of its powers and duties under the Indenture;
(c) The reasonable fees and expenses of such accountants, consultants, attorneys and other experts as may be engaged by the Authority or the Trustee to prepare audits, financial statements, reports, opinions or provide such other services required under this Lease or the Indenture; (d) Amounts coming due and payable as Excess Investment Earnings in accordance with Section 7.6(e); and
(e) The reasonable out-of-pocket expenses of the Authority in connection with the execution and delivery of this Lease or the Indenture, or in connection with the issuance of the Bonds, including but not limited to any and all expenses incurred in connection with the authorization, sale and delivery of the Bonds, or incurred by the Authority in connection with any litigation which may at any time be instituted involving this Lease, the Bonds, the Indenture or any of the other documents contemplated hereby or thereby, or otherwise incurred in connection with the administration of this Lease.

SECTION 4.6. Quiet Enjoyment. Throughout the Term of this Lease, the Authority shall provide the City with quiet use and enjoyment of the Leased Property and the City will peaceably and quietly have and hold and enjoy the Leased Property, without suit, trouble or hindrance from the Authority, except as expressly set forth in this Lease. The Authority will, at the request of the City and at the City’s cost, join in any legal action in which the City asserts its right to such possession and enjoyment to the extent the Authority may lawfully do so. Notwithstanding the foregoing, the Authority has the right to inspect the Leased Property as provided in Section 7.2.

SECTION 4.7. Title. Upon the termination of this Lease (other than under Section

8.2(b) hereof), all right, title and interest of the Authority in and to the Leased Property transfers to and vests in the City. The Authority shall take any and all steps and execute and record any and all documents reasonably required by the City to consummate any such transfer of title.

Attachment 4

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ARTICLE V
MAINTENANCE; TAXES; INSURANCE; AND OTHER MATTERS
SECTION 5.1. Maintenance, Utilities, Taxes and Assessments. Throughout the Term of this Lease, as part of the consideration for the rental of the Leased Property, all improvement, repair and maintenance of the Leased Property are the responsibility of the City, and the City will pay for or otherwise arrange for the payment of all utility services supplied to the Leased Property, which may include, without limitation, janitor service, security, power, gas, telephone, light, heating, water and all other utility services, and will pay for or otherwise arrange for the payment of the cost of the repair and replacement of the Leased Property resulting from ordinary wear and tear or want of care on the part of the City or any assignee or sublessee thereof. In exchange for the Lease Payments herein provided, the Authority agrees to provide only the Leased Property. The City waives the benefits of subsections 1 and 2 of Section 1932, Section 1933(4) and Sections 1941 and 1942 of the California Civil Code, but such waiver does not limit any of the rights of the City under the terms of this Lease.

The City shall also pay or cause to be paid all taxes and assessments of any type or nature, if any, charged to the Authority or the City affecting the Leased Property or the respective interests or estates therein; provided that with respect to special assessments or other governmental charges that may lawfully be paid in installments over a period of years, the City shall pay only such installments as are required to be paid during the Term of this Lease as and when the same become due.

The City may, at its expense and in its name, in good faith contest any such taxes, assessments, utility and other charges and, in the event of any such contest, may permit the taxes, assessments or other charges so contested to remain unpaid during the period of such contest and any appeal therefrom unless the Authority notifies the City that, in its reasonable opinion, by nonpayment of any such items the interest of the Authority in the Leased Property will be materially endangered or the Leased Property or any part thereof will be subject to loss or forfeiture, in which event the City shall promptly pay such taxes, assessments or charges or provide the Authority with full security against any loss which may result from nonpayment, in form satisfactory to the Authority and the Trustee.

SECTION 5.2. Modification of Leased Property. The City has the right, at its own expense, to make additions, modifications and improvements to the Leased Property or any portion thereof. All additions, modifications and improvements to the Leased Property will thereafter comprise part of the Leased Property and become subject to the provisions of this Lease. Such additions, modifications and improvements may not in any way damage the Leased Property, or cause the Leased Property to be used for purposes other than those authorized under the provisions of state and federal law; and the Leased Property, upon completion of any additions, modifications and improvements made thereto under this Section, must be of a value which is not substantially less than the value thereof immediately prior to the making of such additions, modifications and improvements. The City will not permit any mechanic’s or other lien to be established or remain against the Leased Property for labor or materials furnished in connection with any remodeling, additions, modifications, improvements, repairs, renewals or replacements made by the City under this Section; except that if any such lien is established and the City first notifies or causes to be notified the Authority of the City’s Attachment 4

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intention to do so, the City may in good faith contest any lien filed or established against the Leased Property, and in such event may permit the items so contested to remain undischarged and unsatisfied during the period of such contest and any appeal therefrom and shall provide the Authority with full security against any loss or forfeiture which might arise from the nonpayment of any such item, in form satisfactory to the Authority. The Authority will cooperate fully in any such contest, upon the request and at the expense of the City.

SECTION 5.3. Liability Insurance. The City shall maintain or cause to be maintained throughout the Term of this Lease, a standard commercial general liability insurance policy or policies in protection of the Authority, the City, and their respective members, officers, agents, employees and assigns. Said policy or policies shall provide for indemnification of said parties against direct or contingent loss or liability for damages for bodily and personal injury, death or property damage occasioned by reason of the operation of the Leased Property. Such policy or policies shall provide coverage in such liability limits and be subject to such deductibles as the City deems adequate and prudent. Such insurance may be maintained as part of or in conjunction with any other insurance coverage carried by the City, and may be maintained in whole or in part in the form of self-insurance by the City, subject to the provisions of Section 5.4, or in the form of the participation by the City in a joint powers agency or other program providing pooled insurance. The proceeds of such liability insurance must be applied toward extinguishment or satisfaction of the liability with respect to which paid.

SECTION 5.4. Property Insurance. The City shall procure and maintain, or cause to be procured and maintained, throughout the Term of this Lease, insurance against loss or damage to all improvements situated on the Leased Property. To the extent the Leased Property does not include streets, such insurance shall be in an amount at least equal to the lesser of (a) 100% of the replacement value of the insured buildings, or (b) 100% of the aggregate principal amount of the Outstanding Bonds. Such insurance must, as nearly as practicable, cover loss or damage by explosion, windstorm, riot, aircraft, vehicle damage, smoke and such other hazards as are normally covered by such insurance, and must include earthquake insurance if available at reasonable cost from reputable insurers in the judgment of the City. Such insurance may be subject to such deductibles as the City deems adequate and prudent. Such insurance may be maintained as part of or in conjunction with any other insurance coverage carried by the City, and may be maintained in whole or in part in the form of the participation by the City in a joint powers agency or other program providing pooled insurance; provided that such insurance may not be maintained by the City in the form of self-insurance. The Net Proceeds of such insurance must be applied as provided in Section 6.1.

SECTION 5.5. Insurance Net Proceeds; Form of Policies. Each policy of insurance maintained under Section 5.4 must name the Trustee as loss payee so as to provide that all proceeds thereunder are payable to the Trustee. The City shall pay or cause to be paid when due the premiums for all insurance policies required by this Lease. All such policies shall provide that the Trustee is given 30 days’ notice of each expiration, any intended cancellation thereof or reduction of the coverage provided thereby. The Trustee has no responsibility for the sufficiency, adequacy or amount of any insurance or self-insurance herein required and is fully protected in accepting payment on account of such insurance or any adjustment, compromise or settlement of any loss.

Attachment 4

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SECTION 5.6. Installation of City’s Personal Property. The City may at any time and from time to time, in its sole discretion and at its own expense, install or permit to be installed other items of equipment or other personal property in or upon the Leased Property. All such items shall remain the sole property of the City, in which neither the Authority nor the Trustee has any interest, and may be modified or removed by the City at any time, provided that the City must repair all damage to the Leased Property resulting from the installation, modification or removal of any such items. Nothing in this Lease prevents the City from purchasing or leasing items to be installed under this Section under a lease or conditional sale agreement, or subject to a vendor’s lien or security agreement, as security for the unpaid portion of the purchase price thereof, so long as no such lien or security interest attaches to any part of the Leased Property.

SECTION 5.7. Advances. If the City fails to perform any of its obligations under this Article V, the Authority may (but is not required to) take such action as it deems necessary to cure such failure, including the advancement of money, and the City shall repay all such advances as Additional Rental Payments hereunder, with interest at the rate set forth in Section 4.3(c).

ARTICLE VI
DAMAGE, DESTRUCTION AND EMINENT DOMAIN; USE OF NET

PROCEEDS
SECTION 6.1. Application of Net Proceeds. The Trustee, as assignee of the Authority under the Assignment Agreement, has the right to receive all Net Proceeds.

As provided in the Indenture, the Trustee will deposit all Net Proceeds in the Insurance and Condemnation Fund to be applied as set forth in Section 5.07 of the Indenture.

SECTION 6.2. Termination or Abatement Due to Eminent Domain. (a) If the Leased Property is taken permanently under the power of eminent domain or sold to a government threatening to exercise the power of eminent domain, the Term of this Lease thereupon ceases as of the day possession is taken. (b) If less than all of the Leased Property is taken permanently and the remainder is useable for the City’s purposes, or if the Leased Property is taken temporarily, under the power of eminent domain, then:
(i) this Lease continues in full force and effect with respect thereto and does not terminate by virtue of such taking, and the parties waive the benefit of any law to the contrary, and
(ii) the Lease Payments are subject to abatement in an amount determined by the City such that the resulting Lease Payments represent fair consideration for the use and occupancy of the remaining usable portions of the Leased Property.

Notwithstanding the foregoing, there shall be no abatement of the Lease Payments under this Section 6.2 in the event and to the extent that amounts in the Attachment 4

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Insurance and Condemnation Fund, the Bond Fund or the Reserve Fund are available to pay Lease Payments which would otherwise be abated, it being hereby declared that such proceeds and amounts constitute special funds for the payment of the Lease Payments.

SECTION 6.3. Abatement Due to Damage or Destruction. The Lease Payments are subject to abatement during any period in which by reason of damage or destruction (other than by eminent domain which is hereinbefore provided for) there is substantial interference with the use and occupancy by the City of the Leased Property or any portion thereof. The Lease Payments are subject to abatement in an amount determined by the City, such that the resulting Lease Payments represent fair consideration for the use and occupancy of the remaining usable portions of the Leased Property not damaged or destroyed. Such abatement will continue for the period commencing with such damage or destruction and ending with the substantial completion of the work of repair or reconstruction. In the event of any such damage or destruction, this Lease continues in full force and effect and the City waives any right to terminate this Lease by virtue of any such damage and destruction.

Notwithstanding the foregoing, there shall be no abatement of the Lease Payments under this Section 6.3 in the event and to the extent that amounts in the Insurance and Condemnation Fund, the Bond Fund or the Reserve Fund are available to pay Lease Payments which would otherwise be abated, it being hereby declared that such proceeds and amounts constitute special funds for the payment of the Lease Payments.

The abatement of Lease Payments hereunder in accordance with the terms hereof shall not constitute an Event of Default (as defined in Section 8.1) hereunder.

ARTICLE VII

OTHER COVENANTS OF THE CITY
SECTION 7.1. Disclaimer of Warranties. THE AUTHORITY MAKES NO

AGREEMENT, WARRANTY OR REPRESENTATION, EITHER EXPRESS OR

IMPLIED, AS TO THE VALUE, DESIGN, CONDITION, MERCHANTABILITY OR

FITNESS FOR ANY PARTICULAR PURPOSE OR FITNESS FOR THE USE

CONTEMPLATED BY THE CITY OF THE LEASED PROPERTY OR ANY PORTION

THEREOF, OR ANY OTHER REPRESENTATION OR WARRANTY WITH RESPECT TO THE LEASED PROPERTY OR ANY PORTION THEREOF. THE CITY

ACKNOWLEDGES THAT THE AUTHORITY IS NOT A MANUFACTURER OF ANY

PORTION OF THE LEASED PROPERTY OR A DEALER THEREIN, THAT THE CITY

LEASES THE LEASED PROPERTY AS-IS, IT BEING AGREED THAT ALL OF THE AFOREMENTIONED RISKS ARE TO BE BORNE BY THE CITY. The Authority has no liability for incidental, indirect, special or consequential damages, in connection with or arising out of this Lease for the existence, furnishing, functioning or use of the Leased Property by the City.

SECTION 7.2. Access to the Leased Property. The City agrees that the Authority and any Authorized Representative of the Authority, and the Authority’s successors or Attachment 4

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assigns, have the right at all reasonable times to enter upon and to examine and inspect the Leased Property or any part thereof. The City further agrees that the Authority, any Board Representative and the Authority’s successors or assigns may have such rights of access to the Leased Property or any component thereof as reasonably necessary to cause the proper maintenance of the Leased Property if the City fails to perform its obligations hereunder; provided, however, that neither the Authority nor any of its assigns has any obligation to cause such proper maintenance.

SECTION 7.3. Release and Indemnification Covenants. The City agrees to indemnify the Authority, the Trustee and their respective officers, agents, successors and assigns, against all claims, losses and damages, including legal fees and expenses, arising out of any of the following:
(a) the use, maintenance, condition or management of, or from any work or thing done on the Leased Property by the City,
(b) any breach or default on the part of the City in the performance of any of its obligations under this Lease,
(c) any negligence or willful misconduct of the City or of any of its agents, contractors, servants, employees or licensees with respect to the Leased Property,
(d) any intentional misconduct or negligence of any sublessee of the City with respect to the Leased Property,
(e) the acquisition, construction, improvement and equipping of the Leased Property, or the authorization of payment of the costs thereof, or (f) the acceptance and performance of the duties of the Trustee under the Indenture and under this Lease.

The rights of the Authority and the Trustee and the obligations of the City under this Section 7.3 shall survive the termination of this Lease or the resignation or removal of the Trustee.

No indemnification is made under this Section or elsewhere in this Lease for willful misconduct or negligence under this Lease by the Authority, the Trustee or their respective officers, agents, employees, successors or assigns.

SECTION 7.4. Assignment and Subleasing by the City. This Lease may not be assigned by the City, other than to an entity which succeeds to the interests of the City as a municipal corporation. The City may sublease the Leased Property, or any portion thereof, subject to all of the following conditions:
(a) This Lease and the obligation of the City to make Lease Payments hereunder must remain obligations of the City.
(b) The City must, within 30 days after the delivery thereof, furnish or cause to be furnished to the Authority and the Trustee a true and complete copy of such sublease.

Attachment 4

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(c) No such sublease by the City may cause the Leased Property to be used for a purpose which is not authorized under the provisions of the laws of the State of California.
(d) The City must furnish to the Authority and the Trustee a written opinion of Bond Counsel stating that such sublease does not cause the interest components of the Lease Payments to become included in gross income for purposes of federal income taxation or to become subject to personal income taxation by the State of California.

SECTION 7.5. Amendment Hereof. The Authority and the City may at any time amend or modify any of the provisions of this Lease, but only: (a) with the prior written consents of the Owners of a majority in aggregate principal amount of the Outstanding Bonds; or (b) without the consent of the Trustee or any of the Bond Owners, but only if such amendment or modification is for any one or more of the following purposes:
(i) to add to the covenants and agreements of the City contained in this Lease, other covenants and agreements thereafter to be observed, or to limit or surrender any rights or power herein reserved to or conferred upon the City;
(ii) to make such provisions for the purpose of curing any ambiguity, or of curing, correcting or supplementing any defective provision contained herein, to conform to the original intention of the City and the Authority; (iii) to modify, amend or supplement this Lease in such manner as to assure that the interest on the Bonds remains excluded from gross income under the Tax Code;
(iv) to amend the description of the Leased Property to reflect accurately the property originally intended to be included therein, or in connection with any substitution or release of property under Sections 3.3 or 3.4; (v) to obligate the City to pay additional amounts of rental for the use and occupancy of the Leased Property, but only if (A) such additional rent payments are pledged or assigned for the payment of any bonds, notes or other obligations the proceeds of which are applied to finance or refinance the acquisition or construction of any real or personal property for which the City is authorized to expend funds subject to its control, (B) the City has obtained an appraisal or other evidence that the value of the Leased Property is at least equal to the aggregate principal amount of the Outstanding Bonds and all such other bonds, notes, leases or other obligations, and (C) the City has filed with the Trustee written evidence that the amendments made under this clause (v) will not of themselves cause a reduction or withdrawal of any rating then assigned to the Bonds; (vi) in any other respect whatsoever as the Authority and the City deem necessary or desirable, if in the opinion of Bond Counsel such Attachment 4

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modifications or amendments do not materially adversely affect the interests of the Owners of the Bonds.

No such modification or amendment may (a) extend or have the effect of extending any Lease Payment Date or reducing any Lease Payment or any premium payable upon the prepayment thereof, without the express consent of the Owners of the affected Bonds, or (b) modify any of the rights or obligations of the Trustee without its written assent thereto.

SECTION 7.6. Tax Covenants.
(a) Private Business Use Limitation. The City shall assure that the proceeds of the Bonds are not used in a manner which would cause the Bonds to satisfy the private business tests of Section 141(b) of the Tax Code or the private loan financing test of Section 141(c) of the Tax Code.
(b) Federal Guarantee Prohibition. The City may not take any action or permit or suffer any action to be taken if the result of the same would be to cause the Bonds to be “federally guaranteed” within the meaning of Section 149(b) of the Tax Code. (c) No Arbitrage. The City may not take, or permit or suffer to be taken by the Trustee or otherwise, any action with respect to the proceeds of the Bonds or of any other obligations which, if such action had been reasonably expected to have been taken, or had been deliberately and intentionally taken, on the Closing Date, would have caused the Bonds to be “arbitrage bonds” within the meaning of Section 148(a) of the Tax Code.
(d) Maintenance of Tax Exemption. The City shall take all actions necessary to assure the exclusion of interest on the Bonds from the gross income of the Owners of the Bonds to the same extent as such interest is permitted to be excluded from gross income under the Tax Code as in effect on the Closing Date. (e) Rebate of Excess Investment Earnings to United States. The City shall calculate or cause to be calculated the Excess Investment Earnings in all respects at the times and in the manner required under the Tax Code. The City shall pay the full amount of Excess Investment Earnings to the United States of America in such amounts, at such times and in such manner as may be required under the Tax Code.

Such payments shall be made by the City from any source of legally available funds of the City, and shall constitute Additional Rental Payments hereunder.

The City shall keep or cause to be kept, and retain or cause to be retained for a period of six years following the retirement of the Bonds, records of the determinations made under this subsection (e). In order to provide for the administration of this subsection (e), the City may provide for the employment of independent attorneys, accountants and consultants compensated on such reasonable basis as the City may deem appropriate. The Trustee has no duty or obligation to monitor or enforce compliance by the City of any of the requirements under this subsection (e).

SECTION 7.7. Continuing Disclosure. The City shall comply with and carry out all of the provisions of the Continuing Disclosure Certificate executed by the City as of the Closing Date, as originally executed and as it may be amended from time to time in Attachment 4

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accordance with its terms. Notwithstanding any other provision of this Lease, failure of the City to comply with such Continuing Disclosure Certificate will not constitute an Event of Default, although any Participating Underwriter (as that term is defined in such Continuing Disclosure Certificate) or any Owner or beneficial owner of the Bonds may take such actions as may be necessary and appropriate to compel performance by the City of its obligations under this Section, including seeking mandate or specific performance by court order.

ARTICLE VIII

EVENTS OF DEFAULT AND REMEDIES
SECTION 8.1. Events of Default Defined. Any one or more of the following events constitute an Event of Default hereunder:
(a) Failure by the City to pay any Lease Payment or other payment required to be paid hereunder at the time specified herein.
(b) Failure by the City to observe and perform any covenant, condition or agreement on its part to be observed or performed, other than as referred to in the preceding subsection (a), for a period of 30 days after written notice specifying such failure and requesting that it be remedied has been given to the City by the Authority or the Trustee. If in the reasonable opinion of the City the failure stated in the notice can be corrected, but not within such 30 day period, the failure will not constitute an Event of Default if the City commences to cure the failure within such 30 day period and thereafter diligently and in good faith cures the failure in a reasonable period of time.
(c) The filing by the City of a voluntary petition in bankruptcy, or failure by the City promptly to lift any execution, garnishment or attachment, or adjudication of the City as a bankrupt, or assignment by the City for the benefit of creditors, or the entry by the City into an agreement of composition with creditors, or the approval by a court of competent jurisdiction of a petition applicable to the City in any proceedings instituted under the provisions of the Federal Bankruptcy Code, as amended, or under any similar acts which may hereafter be enacted.

SECTION 8.2. Remedies on Default. Whenever any Event of Default has happened and is continuing, the Authority may exercise any and all remedies available under law or granted under this Lease to collect the amounts then due and thereafter to become due hereunder or to enforce any other of its rights hereunder, except as provided herein. Notwithstanding anything herein or in the Indenture to the contrary, (a) neither the Authority nor the Trustee may accelerate the Lease Payments or otherwise declare any Lease Payments not then in default to be immediately due and payable (the Authority hereby expressly waives the right to receive any amount from the City pursuant to Section 1951.2 of the California Civil Code to accelerate payment of the Lease Payments) and (b) the Authority shall have no right to re-lease any portion of the Leased Property that constitutes the roadway portion of a City street. Each covenant hereof to Attachment 4

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be kept and performed by the City is expressly made a condition and upon the breach thereof the Authority may exercise any and all rights granted hereunder; except that no termination of this Lease may be effected either by operation of law or acts of the parties hereto, except only in the manner herein expressly provided.

SECTION 8.3. No Remedy Exclusive. No remedy herein conferred upon or reserved to the Authority is intended to be exclusive and every such remedy is cumulative and in addition to every other remedy given under this Lease or now or hereafter existing at law or in equity. No delay or omission to exercise any right or power accruing upon the occurrence of any Event of Default impairs any such right or power or operates as a waiver thereof, but any such right and power may be exercised from time to time and as often as may be deemed expedient. In order to entitle the Authority to exercise any remedy reserved to it in this Article VIII it is not necessary to give any notice, other than as expressly required in this Article VIII or by law.

SECTION 8.4. Agreement to Pay Attorneys’ Fees and Expenses. If the Authority or the City defaults under any of the provisions of this Lease and the nondefaulting party employs attorneys or incurs other expenses for the collection of moneys or the enforcement or performance or observance of any obligation or agreement on the part of the defaulting party herein contained, the defaulting party will on demand therefor pay to the nondefaulting party the reasonable fees of such attorneys and such other expenses so incurred by the nondefaulting party.

SECTION 8.5. No Additional Waiver Implied by One Waiver. If the Authority or the City breaches any agreement in this Lease and thereafter the other party waives the breach, such waiver is limited to the particular Breach so waived and does not operate to waive any other breach hereunder.

SECTION 8.6. Application of Proceeds. All net proceeds received from a re-lease of the Leased Property under this Article VIII, and all other amounts derived by the Authority or the Trustee as a result of the occurrence of an Event of Default, must be paid to and applied by the Trustee in accordance with Section 7.03 of the Indenture.

SECTION 8.7. Trustee and Bond Owners to Exercise Rights. Such rights and remedies as are given to the Authority under this Article VIII have been assigned by the Authority to the Trustee under the Assignment Agreement for the benefit of the Bond Owners, to which assignment the City hereby consents. The Trustee and the Bond Owners shall exercise such rights and remedies in accordance with the Indenture.

Attachment 4

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ARTICLE IX

PREPAYMENT OF LEASE PAYMENTS
SECTION 9.1. Security Deposit. Notwithstanding any other provision of this Lease, the City may on any date secure the payment of the Lease Payments allocable to the Leased Property in whole or in part by depositing with the Trustee an amount of cash which, together with other available amounts on deposit in the funds and accounts established under the Indenture, is either:
(a) sufficient to pay such Lease Payments, including the principal and interest components thereof, in accordance with the Lease Payment schedule set forth in Appendix B, or
(b) invested in whole or in part in non-callable Federal Securities in such amount as will, in the opinion of an independent certified public accountant, together with interest to accrue thereon and together with any cash which is so deposited, be fully sufficient to pay such Lease Payments when due under Section 4.3(a), as the City instructs at the time of said deposit.

If the City makes a security deposit under this Section with respect to all unpaid Lease Payments, and notwithstanding the provisions of Section 4.2, (a) the Term of this Lease will continue, (b) all obligations of the City under this Lease, and all security provided by this Lease for said Lease Payments, will thereupon cease and terminate, excepting only the obligation of the City to make, or cause to be made all of said Lease Payments from such security deposit, and (c) under Section 4.7, title to the Leased Property will vest in the City on the date of said deposit automatically and without further action by the City or the Authority. Said security deposit constitutes a special fund for the payment of Lease Payments in accordance with the provisions of this Lease.

SECTION 9.2. Prepayment. The City has the option to prepay the principal components of the Lease Payments in as described under Section 4.01(a) of the Indenture. Such prepayment price shall be deposited by the Trustee in the Redemption Fund to be applied to the redemption of Bonds under Section 4.01(a) of the Indenture.

The City shall give written notice to the Authority and the Trustee of its intention to prepay the Lease Payments under this Section at least 45 days prior to the prepayment date, or such shorter period of time as may be acceptable to the Trustee in its sole discretion, such notice being solely for the convenience of the Trustee. Additionally, this Lease is subject to extraordinary mandatory prepayment as described under Section

4.01(c) of the Indenture.

SECTION 9.3. Mandatory Prepayment From Net Proceeds of Insurance or Eminent Domain. The City shall prepay the principal components of the Lease Payments allocable to the Leased Property in whole or in part on any date, from and to the extent of any Net Proceeds of insurance award or eminent domain award with respect to the Leased Property theretofore deposited in the Redemption Fund for that purpose under Article VI hereof and Section 5.07 of the Indenture. Such Net Proceeds, to the extent remaining after payment of any delinquent Lease Payments, will be credited towards the City’s obligations under this Section and applied to the corresponding redemption of Bonds under Section 4.01 of the Indenture on the next available redemption date.

Attachment 4

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SECTION 9.4. Credit for Amounts on Deposit. If the principal components of the Lease Payments are prepaid in full under this Article IX, such that the Indenture is discharged by its terms as a result of such prepayment, at the written election of the City filed with the Trustee any or all amounts then on deposit in the Bond Fund (and the accounts therein) or the Reserve Fund will be credited towards the amounts then required to be so prepaid.

ARTICLE X

MISCELLANEOUS
SECTION 10.1. Notices. Any notice, request, complaint, demand or other communication under this Lease shall be given by first class mail or personal delivery to the party entitled thereto at its address set forth below, or by facsimile transmission or other form of telecommunication, at its number set forth below. Notice shall be effective either (a) upon transmission by facsimile transmission or other form of telecommunication, (b) 48 hours after deposit in the United States of America first class mail, postage prepaid, or (c) in the case of personal delivery to any person, upon actual receipt. The Authority, the City or the Trustee may, by written notice to the other parties, from time to time modify the address or number to which communications are to be given hereunder.

If to the City City of Ukiah
or the Authority: Attention: Finance Director
300 Seminary Avenue
Ukiah, CA 95482
If to the Trustee: The Bank of New York Mellon Trust Company, N.A.

Attention: Corporate Trust Administration
333 S. Hope Street, Suite #2525
Los Angeles, California 90071
100 Pine Street, Suite 3200
San Francisco, California 94111
SECTION 10.2. Binding Effect. This Lease inures to the benefit of and binds the Authority, the City and their respective successors and assigns.

SECTION 10.3. Severability. If any provision of this Lease is held invalid or unenforceable by any court of competent jurisdiction, such holding will not invalidate or render unenforceable any other provision hereof.

SECTION 10.4. Net-net-net Lease. This Lease is deemed and construed to be a “net-net-net lease” and the City hereby agrees that the Lease Payments are an absolute net return to the Authority, free and clear of any expenses, charges or set-offs whatsoever.

SECTION 10.5. Third Party Beneficiary. The Trustee is hereby made a third party beneficiary hereunder with all rights of a third party beneficiary.

Attachment 4

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SECTION 10.6. Further Assurances and Corrective Instruments. The Authority and the City shall, from time to time, execute, acknowledge and deliver, or cause to be executed, acknowledged and delivered, such supplements hereto and such further instruments as may reasonably be required for correcting any inadequate or incorrect description of the Leased Property hereby leased or intended so to be or for carrying out the expressed intention of this Lease.

SECTION 10.7. Execution in Counterparts. This Lease may be executed in several counterparts, each of which is an original and all of which constitute but one and the same instrument.

SECTION 10.8. Applicable Law. This Lease is governed by and construed in accordance with the laws of the State of California.

SECTION 10.9. Board and City Representatives. Whenever under the provisions of this Lease the approval of the Authority or the City is required, or the Authority or the City is required to take some action at the request of the other, such approval or such request shall be given for the Authority and for the City by an Authorized Representative thereof, and any party hereto may conclusively rely upon any such approval or request.

SECTION 10.10. Captions. The captions or headings in this Lease are for convenience only and in no way define, limit or describe the scope or intent of any provisions or Section of this Lease.

Remainder of page intentionally left blank. Signatures on next page.

Attachment 4

[Signature Page to Lease Agreement dated as of February 1, 2022] IN WITNESS WHEREOF, the Authority and the City have caused this Lease to be executed in their respective names by their duly authorized officers, all as of the date first above written.

UKIAH PUBLIC FINANCING AUTHORITY
as Lessor
By:

Daniel Buffalo
Treasurer

CITY OF UKIAH
as Lessee
By:

Daniel Buffalo
Finance Director
Attachment 4

A-1

APPENDIX A

DESCRIPTION OF THE LEASED PROPERTY
The Leased Property consists of that certain real property, together with all fixtures, equipment or other improvements located upon the real property, except as to the library as excluded below, situated in the City of Ukiah, County of Mendocino, State of California, described as follows:
[[All City Streets]]
Attachment 4

B-1

APPENDIX B

SCHEDULE OF LEASE PAYMENTS
Lease
Payment Date *
Principal
Component
Interest
Component
Aggregate
Lease Payment
Annual
Aggregate
Lease Payment
4/1/22
6/30/22
10/1/22
4/1/23
6/30/23
10/1/23
4/1/24
6/30/24
10/1/24
4/1/25
6/30/25
10/1/25
4/1/26
6/30/26
10/1/26
4/1/27
6/30/27
10/1/27
4/1/28
6/30/28
10/1/28
4/1/29
6/30/29
10/1/29
4/1/30
6/30/30
10/1/30
4/1/31
6/30/31
10/1/31
4/1/32
6/30/32
10/1/32
4/1/33
6/30/33
10/1/33
4/1/34
6/30/34
10/1/34
4/1/35
6/30/35
10/1/35
4/1/36
6/30/36
10/1/36
4/1/37
6/30/37
10/1/37
4/1/38
6/30/38
Attachment 4

B-2
10/1/38
4/1/39
6/30/39
10/1/39
4/1/40
6/30/40
10/1/40
4/1/41
6/30/41
10/1/41
4/1/42
6/30/42
10/1/42
4/1/43
6/30/43
10/1/43
4/1/44
6/30/44
10/1/44
4/1/45
6/30/45
10/1/45
4/1/46
6/30/46
10/1/46
4/1/47
6/30/47
10/1/47
4/1/48
6/30/48
10/1/48
4/1/49
6/30/49
10/1/49
4/1/50
6/30/50
10/1/50
4/1/51
6/30/51
TOTAL
* Lease Payment Dates are the 5th Business Day immediately preceding each date listed in the schedule.

Attachment 4

Jones Hall Draft 1.11.22

INDENTURE OF TRUST
Dated as of February 1, 2022
between

UKIAH PUBLIC FINANCING AUTHORITY
and

THE BANK OF NEW YORK MELLON TRUST COMPANY,
as Trustee
Authorizing the Issuance of
$_______________
Ukiah Public Financing Authority
Lease Revenue Bonds, Series 2022
(Capital Projects)
Attachment 5

-iTABLE OF CONTENTS
ARTICLE I:

DEFINITIONS; RULES OF CONSTRUCTION:

Section 1.01. Definitions ...........................................................................................................3 Section 1.02. Authorization .......................................................................................................3 Section 1.03. Interpretation.......................................................................................................3 ARTICLE II:

THE BONDS:

Section 2.01. Authorization of Bonds........................................................................................4 Section 2.02. Terms of the Bonds.............................................................................................4 Section 2.03. Transfer and Exchange of Bonds .......................................................................5 Section 2.04. Book-Entry System .............................................................................................6 Section 2.05. Registration Books..............................................................................................8 Section 2.06. Form and Execution of Bonds.............................................................................8 Section 2.07. Bonds Mutilated, Lost, Destroyed or Stolen........................................................8 ARTICLE III:

ISSUANCE OF BONDS; APPLICATION OF PROCEEDS:

Section 3.01. Issuance of the Bonds ........................................................................................9 Section 3.02. Application of Proceeds of Sale of Bonds...........................................................9 Section 3.03. Establishment and Application of Costs of Issuance Fund.................................9 Section 3.04. Establishment and Application of Project Fund. ...............................................10 Section 3.05. Validity of Bonds ...............................................................................................10 ARTICLE IV:

REDEMPTION OF BONDS:

Section 4.01. Terms of Redemption .......................................................................................11 Section 4.02. Selection of Bonds for Redemption ..................................................................12 Section 4.03. Notice of Redemption; Rescission ....................................................................12 Section 4.04. Partial Redemption of Bonds ............................................................................12 Section 4.05. Effect of Redemption ........................................................................................12 ARTICLE V:

REVENUES; FUNDS AND ACCOUNTS; PAYMENT OF
PRINCIPAL AND INTEREST:

Section 5.01. Security for the Bonds; Bond Fund...................................................................13 Section 5.02. Allocation of Revenues .....................................................................................13 Section 5.03. Application of Interest Account .........................................................................14 Section 5.04. Application of Principal Account........................................................................14 Section 5.05. Reserve Fund ...................................................................................................14 Section 5.06. Application of Redemption Fund.......................................................................15 Section 5.07. Insurance and Condemnation Fund..................................................................15 Section 5.08. Investments.......................................................................................................16 Section 5.09. Valuation and Disposition of Investments .........................................................17 ARTICLE VI:

COVENANTS OF THE AUTHORITY
Section 6.01. Punctual Payment.............................................................................................19 Section 6.02. Extension of Payment of Bonds........................................................................19 Attachment 5

-iiSection 6.03. Against Encumbrances .....................................................................................19 Section 6.04. Power to Issue Bonds and Make Pledge and Assignment ...............................19 Section 6.05. Accounting Records..........................................................................................19 Section 6.06. Limitation on Additional Obligations..................................................................20 Section 6.07. Tax Covenants..................................................................................................20 Section 6.08. Enforcement of Lease.......................................................................................20 Section 6.09. Waiver of Laws .................................................................................................21 Section 6.10. Further Assurances...........................................................................................21 Section 6.11. Maintenance of Existence.................................................................................21 ARTICLE VII:

EVENTS OF DEFAULT AND REMEDIES:

Section 7.01. Events of Default...............................................................................................22 Section 7.02. Remedies Upon Event of Default......................................................................22 Section 7.03. Application of Revenues and Other Funds After Default ..................................23 Section 7.04. Trustee to Represent Bond Owners .................................................................23 Section 7.05. Limitation on Bond Owners' Right to Sue .........................................................24 Section 7.06. Absolute Obligation of Board ............................................................................24 Section 7.07. Termination of Proceedings ..............................................................................24 Section 7.08. Remedies Not Exclusive...................................................................................25 Section 7.09. No Waiver of Default.........................................................................................25 Section 7.10. Notice to the Bond Owners of Default...............................................................25 ARTICLE VIII:

THE TRUSTEE:

Section 8.01. Duties, Immunities and Liabilities of Trustee ....................................................26 Section 8.02. Merger or Consolidation....................................................................................27 Section 8.03. Liability of Trustee.............................................................................................27 Section 8.04. Right to Rely on Documents .............................................................................30 Section 8.05. Preservation and Inspection of Documents ......................................................30 Section 8.06. Compensation and Indemnification...................................................................30 Section 8.07. Accounting Records and Financial Statements ................................................31 ARTICLE IX:

MODIFICATION OR AMENDMENT HEREOF:

Section 9.01. Amendments Permitted ....................................................................................32 Section 9.02. Effect of Supplemental Indenture......................................................................33 Section 9.03. Endorsement of Bonds; Preparation of New Bonds .........................................33 Section 9.04. Amendment of Particular Bonds .......................................................................34 ARTICLE X:

DEFEASANCE:

Section 10.01. Discharge of Indenture......................................................................................35 Section 10.02. Discharge of Liability on Bonds.........................................................................35 Section 10.03. Deposit of Money or Securities with Trustee ....................................................36 Section 10.04. Unclaimed Funds ..............................................................................................36 ARTICLE XI:

MISCELLANEOUS:

Section 11.01. Liability of Authority Limited to Revenues .........................................................37 Section 11.02. Limitation of Rights to Parties and Bond Owners .............................................37 Attachment 5

-iiiSection 11.03. Funds and Accounts .........................................................................................37 Section 11.04. Waiver of Notice; Requirement of Mailed Notice ..............................................37 Section 11.05. Destruction of Bonds.........................................................................................37 Section 11.06. Severability of Invalid Provisions ......................................................................37 Section 11.07. Notices ..............................................................................................................38 Section 11.08. Evidence of Rights of Bond Owners .................................................................38 Section 11.09. Disqualified Bonds ............................................................................................39 Section 11.10. Money Held for Particular Bonds ......................................................................39 Section 11.11. Waiver of Personal Liability...............................................................................39 Section 11.12. Successor Is Deemed Included in All References to Predecessor...................39 Section 11.13. Execution in Several Counterparts ...................................................................39 Section 11.14. Payment on Non-Business Day ........................................................................40 Section 11.15. Governing Law..................................................................................................40

APPENDIX A DEFINITIONS

APPENDIX B FORM OF BOND
Attachment 5

INDENTURE OF TRUST
This INDENTURE OF TRUST (this “Indenture”), dated for convenience as of February 1, 2022, is between the UKIAH PUBLIC FINANCING AUTHORITY, a joint exercise of powers authority organized and existing under the laws of the State of California (the “Authority”), and THE BANK OF NEW YORK MELLON TRUST COMPANY, a national banking association organized and existing under the laws of the United States of America, with a corporate trust office in San Francisco, California, being qualified to accept and administer the trusts hereby created (the “Trustee”).

BACKGROUND:

1. The City is proceeding to reconstruct its corporation yard and construct improvements to various City streets (collectively, the “Project”).

2. In order to provide funds to finance a portion of the costs of the Project, the City has agreed to lease the real property more particularly described in Appendix A attached hereto and by this reference incorporated herein, consisting of streets in the City (the “Leased Property”) to the Authority under a Site Lease dated as of February 1, 2022 (the “Site Lease”), under which the Authority agrees to make an initial rental payment (the “Site Lease Payment”) which is sufficient to provide funds for such purposes.

3. The Authority has authorized the issuance of its Ukiah Public Financing Authority Lease Revenue Bonds, Series 2022 (Capital Projects) in the aggregate principal amount of $______________ (the “Bonds”) under this Indenture and under the provisions of Article 4 of Chapter 5, Division 7, Title 1 of the Government Code of the State of California, commencing with Section 6584 of said Code (the “Bond Law”), for the purpose of providing the funds to enable the Authority to pay the Site Lease Payment to the City in accordance with the Site Lease.

4. In order to provide revenues which are sufficient to enable the Authority to pay debt service on the Bonds, the Authority has agreed to lease the Leased Property back to the City under a Lease Agreement dated as of February 1, 2022 (the “Lease”), under which the City has agreed to pay semiannual Lease Payments as the rental for the Leased Property thereunder.

5. The lease payments made by the City under the Lease have been assigned by the Authority to the Trustee for the security of the Bonds under an Assignment Agreement dated as of February 1, 2022, between the Authority as assignor and the Trustee as assignee.

6. In order to provide for the authentication and delivery of the Bonds, to establish and declare the terms and conditions upon which the Bonds are to be issued and to secure the payment of the principal thereof, premium (if any) and interest thereon, the Authority has authorized the execution and delivery of this Indenture.

7. The Authority has found and determines, and hereby affirms, that all acts and proceedings required by law necessary to make the Bonds, when executed by the Attachment 5

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Authority, authenticated and delivered by the Trustee and duly issued, the valid, binding and legal special obligations of the Authority, and to constitute this Indenture a valid and binding agreement for the uses and purposes herein set forth in accordance with its terms, have been done and taken, and the execution and delivery of this Indenture have been in all respects duly authorized.

AGREEMENT:

In order to secure the payment of the principal of and the interest and redemption premium (if any) on all the Outstanding Bonds under this Indenture according to their tenor, and to secure the performance and observance of all the covenants and conditions therein and herein set forth, and to declare the terms and conditions upon and subject to which the Bonds are to be issued and received, and in consideration of the premises and of the mutual covenants herein contained and of the purchase and acceptance of the Bonds by the Owners thereof, and for other valuable considerations, the receipt of which is hereby acknowledged, the Authority and the Trustee do hereby covenant and agree with one another, for the benefit of the respective Owners from time to time of the Bonds, as follows:

Attachment 5

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ARTICLE I
DEFINITIONS; RULES OF CONSTRUCTION
SECTION 1.01. Definitions. Unless the context clearly otherwise requires or unless otherwise defined herein, the capitalized terms defined in Appendix A attached to this Indenture have the respective meanings specified in that Appendix when used in this Indenture.

SECTION 1.02. Authorization. Each of the parties hereby represents and warrants that it has full legal authority and is duly empowered to enter into this Indenture, and has taken all actions necessary to authorize the execution hereof by the officers and persons signing it.

SECTION 1.03. Interpretation.
(a) Unless the context otherwise indicates, words expressed in the singular shall include the plural and vice versa and the use of the neuter, masculine, or feminine gender is for convenience only and shall be deemed to include the neuter, masculine or feminine gender, as appropriate.
(b) Headings of articles and sections herein and the table of contents hereof are solely for convenience of reference, do not constitute a part hereof and shall not affect the meaning, construction or effect hereof.
(c) All references herein to “Articles,” “Sections” and other subdivisions are to the corresponding Articles, Sections or subdivisions of this Indenture; the words “herein,” “hereof,” “hereby,” “hereunder” and other words of similar import refer to this Indenture as a whole and not to any particular Article, Section or subdivision hereof.

Attachment 5

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ARTICLE II

THE BONDS
SECTION 2.01. Authorization of Bonds. The Authority has reviewed all proceedings heretofore taken and has found, as a result of such review, and hereby finds and determines that all things, conditions and acts required by law to exist, happen or be performed precedent to and in connection with the issuance of the Bonds do exist, have happened and have been performed in due time, form and manner as required by law, and the Authority is now duly empowered, under each and every requirement of law, to issue the Bonds in the manner and form provided in this Indenture.

The Authority hereby authorizes the issuance of Bonds in the aggregate principal amount of $___________ under the Bond Law for the purposes of providing funds to pay the Site Lease Payment to the City and thereby provide funds to finance the Project. The Bonds are authorized and issued under, and are subject to the terms of, this Indenture and the Bond Law. The Bonds are designated as the “Ukiah Public Financing Authority Lease Revenue Bonds, Series 2022 (Capital Projects).”
SECTION 2.02. Terms of the Bonds.
(a) Payment Provisions. The Bonds shall be issued in fully registered form without coupons in denominations of $5,000 or any integral multiple thereof, so long as no Bond has more than one maturity date. The Bonds shall mature on April 1 in each of the years and in the amounts, and bear interest (calculated on the basis of a 360-day year of twelve 30-day months) at the rates, as follows:

Maturity Date
(April 1)
Principal
Amount
Interest
Rate
Interest on the Bonds is payable from the Interest Payment Date next preceding the date of authentication thereof unless:

Attachment 5

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(a) a Bond is authenticated on or before an Interest Payment Date and after the close of business on the preceding Record Date, in which event it will bear interest from such Interest Payment Date, (b) a Bond is authenticated on or before the first Record Date, in which event interest thereon will be payable from the Closing Date, or (c) interest on any Bond is in default as of the date of authentication thereof, in which event interest thereon will be payable from the date to which interest has been paid in full, payable on each Interest Payment Date.

Interest is payable on each Interest Payment Date to the persons in whose names the ownership of the Bonds is registered on the Registration Books at the close of business on the immediately preceding Record Date, except as provided below. Interest on any Bond which is not punctually paid or duly provided for on any Interest Payment Date is payable to the person in whose name the ownership of such Bond is registered on the Registration Books at the close of business on a special record date for the payment of such defaulted interest to be fixed by the Trustee, notice of which is given to such Owner by first-class mail not less than 10 days prior to such special record date.

The Trustee will pay interest on the Bonds by check of the Trustee mailed by first class mail, postage prepaid, on each Interest Payment Date to the Owners of the Bonds at their respective addresses shown on the Registration Books as of the close of business on the preceding Record Date. At the written request of the Owner of Bonds in an aggregate principal amount of at least $1,000,000, which written request is on file with the Trustee as of any Record Date, the Trustee will pay interest on such Bonds on each succeeding Interest Payment Date by wire transfer in immediately available funds to such account of a financial institution within the United States of America as specified in such written request, which written request will remain in effect until rescinded in writing by the Owner. The Trustee will pay principal of the Bonds in lawful money of the United States of America by check of the Trustee upon presentation and surrender thereof at the Office of the Trustee.

SECTION 2.03. Transfer and Exchange of Bonds.
(a) Transfer. Any Bond may, in accordance with its terms, be transferred, upon the Registration Books, by the person in whose name it is registered, in person or by a duly authorized attorney of such person, upon surrender of such Bond to the Trustee at its Office for cancellation, accompanied by delivery of a written instrument of transfer in a form acceptable to the Trustee, duly executed. The Trustee shall collect from the transferee any tax or other governmental charge on the transfer of any Bonds under this Section 2.03. Whenever any Bond or Bonds shall be surrendered for transfer, the Authority shall execute and the Trustee shall authenticate and deliver to the transferee a new Bond or Bonds of like series, interest rate, maturity and aggregate principal amount in authorized denominations. The Authority shall pay the cost of printing Bonds and any services rendered or expenses incurred by the Trustee in connection with any transfer of Bonds. Prior to any transfer of a Bond outside the book-entry system (including, but not limited to, the initial transfer outside the book-entry system) the transferor shall provide or cause to be provided to the Trustee all information necessary to allow the Trustee to Attachment 5

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comply with any applicable tax reporting obligations, including without limitation any cost basis reporting obligations under Internal Revenue Code Section 6045, as amended. The Trustee shall conclusively rely on the information provided to it and shall have no responsibility to verify or ensure the accuracy of such information. (b) Exchange. The Bonds may be exchanged at the Office of the Trustee for a like aggregate principal amount of Bonds of other authorized denominations and of the same series, interest rate and maturity. The Trustee shall collect from the transferee any tax or other governmental charge on the exchange of any Bonds under this subsection (b). The Authority shall pay the cost of printing Bonds and any services rendered or expenses incurred by the Trustee in connection with any exchange of Bonds. (c) Limitations. The Trustee may refuse to transfer or exchange, under the provisions of this Section 2.03, any Bonds selected by the Trustee for redemption under Article IV, or any Bonds during the period established by the Trustee for the selection of Bonds for redemption.

SECTION 2.04. Book-Entry System.
(a) Original Delivery. The Bonds will be initially delivered in the form of a separate single fully registered bond (which may be typewritten) for each maturity of the Bonds. Upon initial delivery, the Trustee shall register the ownership of each Bond on the Registration Books in the name of the Nominee. Except as provided in subsection (c), the ownership of all of the Outstanding Bonds shall be registered in the name of the Nominee on the Registration Books.

With respect to Bonds the ownership of which shall be registered in the name of the Nominee, the Authority and the Trustee has no responsibility or obligation to any Depository System Participant or to any person on behalf of which the Nominee holds an interest in the Bonds. Without limiting the generality of the immediately preceding sentence, the Authority and the Trustee has no responsibility or obligation with respect to (i) the accuracy of the records of the Depository, the Nominee or any Depository System Participant with respect to any ownership interest in the Bonds, (ii) the delivery to any Depository System Participant or any other person, other than a Bond Owner as shown in the Registration Books, of any notice with respect to the Bonds, including any notice of redemption, (iii) the selection by the Depository of the beneficial interests in the Bonds to be redeemed if the Authority elects to redeem the Bonds in part, (iv) the payment to any Depository System Participant or any other person, other than a Bond Owner as shown in the Registration Books, of any amount with respect to principal, premium, if any, or interest on the Bonds or (v) any consent given or other action taken by the Depository as Owner of the Bonds. The Authority and the Trustee may treat and consider the person in whose name each Bond is registered as the absolute owner of such Bond for the purpose of payment of principal of and premium, if any, and interest on such Bond, for the purpose of giving notices of redemption and other matters with respect to such Bond, for the purpose of registering transfers of ownership of such Bond, and for all other purposes whatsoever. The Trustee shall pay the principal of and the interest and premium, if any, on the Bonds only to the respective Owners or their respective attorneys duly authorized in writing, and all such payments shall be valid and effective to fully satisfy and discharge all obligations with respect to payment of principal of and interest and premium, if any, on the Bonds to the extent of the sum or sums so paid. No person other than a Bond Owner shall receive a Bond evidencing the obligation of the Authority to make payments of Attachment 5

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principal, interest and premium, if any, under this Indenture. Upon delivery by the Depository to the Authority of written notice to the effect that the Depository has determined to substitute a new Nominee in its place, and subject to the provisions herein with respect to Record Dates, such new nominee shall become the Nominee hereunder for all purposes; and upon receipt of such a notice the Authority shall promptly deliver a copy of the same to the Trustee.
(b) Representation Letter. In order to qualify the Bonds for the Depository’s book-entry system, the Authority shall execute and deliver to such Depository a letter representing such matters as shall be necessary to so qualify the Bonds. The execution and delivery of such letter shall not in any way limit the provisions of subsection (a) above or in any other way impose upon the Authority or the Trustee any obligation whatsoever with respect to persons having interests in the Bonds other than the Bond Owners. Upon the written acceptance by the Trustee, the Trustee shall agree to take all action reasonably necessary for all representations of the Trustee in such letter with respect to the Trustee to at all times be complied with. In addition to the execution and delivery of such letter, the Authority may take any other actions, not inconsistent with this Indenture, to qualify the Bonds for the Depository’s book-entry program.
(c) Transfers Outside Book-Entry System. If either (i) the Depository determines not to continue to act as Depository for the Bonds, or (ii) the Authority determines to terminate the Depository as such, then the Authority shall thereupon discontinue the bookentry system with such Depository. In such event, the Depository shall cooperate with the Authority and the Trustee in the issuance of replacement Bonds by providing the Trustee with a list showing the interests of the Depository System Participants in the Bonds, and by surrendering the Bonds, registered in the name of the Nominee, to the Trustee on or before the date such replacement Bonds are to be issued. The Depository, by accepting delivery of the Bonds, agrees to be bound by the provisions of this subsection (c). If, prior to the termination of the Depository acting as such, the Authority fails to identify another Securities Depository to replace the Depository, then the Bonds shall no longer be required to be registered in the Registration Books in the name of the Nominee, but shall be registered in whatever name or names the Owners transferring or exchanging Bonds shall designate, in accordance with the provisions hereof.

If the Authority determines that it is in the best interests of the beneficial owners of the Bonds that they be able to obtain certificated Bonds, the Authority may notify the Depository System Participants of the availability of such certificated Bonds through the Depository. In such event, the Trustee will issue, transfer and exchange Bonds as required by the Depository and others in appropriate amounts; and whenever the Depository requests, the Trustee and the Authority shall cooperate with the Depository in taking appropriate action (y) to make available one or more separate certificates evidencing the Bonds to any Depository System Participant having Bonds credited to its account with the Depository, or (z) to arrange for another Securities Depository to maintain custody of a single certificate evidencing such Bonds, all at the Authority’s expense. (d) Payments to the Nominee. Notwithstanding any other provision of this Indenture to the contrary, so long as any Bond is registered in the name of the Nominee, all payments with respect to principal of and interest and premium, if any, on such Bond and all notices with respect to such Bond shall be made and given, respectively, as provided in the letter described in subsection (b) of this Section or as otherwise instructed by the Depository.

Attachment 5

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SECTION 2.05. Registration Books. The Trustee will keep or cause to be kept, at the Office of the Trustee, sufficient records for the registration and transfer of ownership of the Bonds, which shall upon reasonable notice as agreed to by the Trustee, be open to inspection during regular business hours by the Authority; and, upon presentation for such purpose, the Trustee shall, under such reasonable regulations as it may prescribe, register or transfer or cause to be registered or transferred, on such records, the ownership of the Bonds as hereinbefore provided.

SECTION 2.06. Form and Execution of Bonds. The Bonds, the form of Trustee’s certificate of authentication, and the form of assignment to appear thereon, are set forth in Appendix B attached hereto and by this reference incorporated herein, with necessary or appropriate variations, omissions and insertions, as permitted or required by this Indenture.

The Treasurer of the Authority or other Authorized Representative with authority to do so shall execute, and the Secretary of the Authority shall attest each Bond. Either or both of such signatures may be made manually or may be affixed by facsimile thereof.

If any officer whose signature appears on any Bond ceases to be such officer before the Closing Date, such signature will nevertheless be as effective as if the officer had remained in office until the Closing Date. Any Bond may be signed and attested on behalf of the Authority by such persons as at the actual date of the execution of such Bond are the proper officers of the Authority, duly authorized to execute debt instruments on behalf of the Authority, although on the date of such Bond any such person was not an officer of the Authority.

Only those Bonds bearing a certificate of authentication in the form set forth in Appendix B, manually executed and dated by the Trustee, are valid or obligatory for any purpose or entitled to the benefits of this Indenture, and such certificate of the Trustee is conclusive evidence that such Bonds have been duly authenticated and delivered hereunder and are entitled to the benefits of this Indenture.

SECTION 2.07. Bonds Mutilated, Lost, Destroyed or Stolen. If any Bond is mutilated, the Authority, at the expense of the Owner of such Bond, shall execute, and the Trustee shall thereupon authenticate and deliver, a new Bond of like tenor in exchange and substitution for the Bond so mutilated, but only upon surrender to the Trustee of the Bond so mutilated. The Trustee shall cancel every mutilated Bond surrendered to it and deliver such mutilated Bond to, or upon the order of, the Authority. If any Bond is lost, destroyed or stolen, evidence of such loss, destruction or theft may be submitted to the Trustee and, if such evidence is satisfactory and if indemnity satisfactory to the Trustee is given, the Authority, at the expense of the Owner, shall execute, and the Trustee shall thereupon authenticate and deliver, a new Bond of like tenor in lieu of and in substitution for the Bond so lost, destroyed or stolen. The Trustee may require payment of a sum not exceeding the actual cost of preparing each new Bond issued under this Section and of the expenses which may be incurred by the Trustee in connection therewith. Any Bond issued under the provisions of this Section in lieu of any Bond alleged to be lost, destroyed or stolen will constitute an original additional contractual obligation on the part of the Authority whether or not the Bond so alleged to be lost, destroyed or stolen be at any time enforceable by anyone, and shall be equally and proportionately entitled to the benefits of this Indenture with all other Bonds issued under this Indenture.

Attachment 5

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Notwithstanding any other provision of this Section 2.07, in lieu of delivering a new Bond for which principal has become due for a Bond which has been mutilated, lost, destroyed or stolen, the Trustee may make payment of such Bond in accordance with its terms upon receipt of indemnity satisfactory to the Trustee.

ARTICLE III
ISSUANCE OF BONDS; APPLICATION OF

PROCEEDS
SECTION 3.01. Issuance of the Bonds. At any time after the execution of this Indenture, the Authority may execute and the Trustee shall authenticate and, upon the Written Request of the Authority, deliver the Bonds to the Original Purchaser upon receipt of payment of the purchase price for the Bonds.

SECTION 3.02. Application of Proceeds of Sale of Bonds . Upon the receipt of payment for the Bonds on the Closing Date in the amount of $_____________ (representing the aggregate principal amount thereof ($_____________), plus original issuance premium of $_____________, less an Underwriter’s discount of $_____________), the Trustee shall deposit the proceeds thereof into a temporary account, which shall be disbursed in full on the Closing Date (whereupon said temporary account shall be closed) as follows:
(a) The Trustee shall wire transfer to the City the amount of $_____________, constituting the remainder of such proceeds, to be held by the City in the Project Fund.
(b) The Trustee shall deposit the amount of $_____________into the Reserve Fund.
(c) The Trustee shall deposit the amount of $_____________ into the Costs of Issuance Fund.

SECTION 3.03. Establishment and Application of Costs of Issuance Fund. The Trustee shall establish, maintain and hold in trust a separate fund designated as the “Costs of Issuance Fund” into which the Trustee shall deposit a portion of the proceeds of sale of the Bonds under Section 3.02(c). The Trustee shall disburse amounts in the Costs of Issuance Fund from time to time to pay the Costs of Issuance upon submission of a Written Requisition of the Authority stating the person to whom payment is to be made, the amount to be paid, the purpose for which the obligation was incurred and that such payment is a proper charge against said fund. The Trustee may conclusively rely on such Written Requisitions and shall be fully protected in relying thereon. On 120 days following issuance of the Bonds, or upon the earlier Written Request of the Authority, the Trustee shall transfer all amounts remaining in the Costs of Issuance Fund to the Bond Fund and shall thereupon close the Costs of Issuance Fund.

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SECTION 3.04. Establishment and Application of Project Fund. There is hereby established in trust a special fund designated the “Project Fund,” which will be held by the Trustee and which will be kept separate and apart from all other funds and moneys held by the Trustee into which the Trustee shall deposit a portion of the proceeds of sale of the Bonds under Section 3.02(b). The Trustee shall disburse amounts in the Project Fund from time to time to pay the Project Costs upon submission of a Written Requisition of the Authority stating the person to whom payment is to be made, the amount to be paid, the purpose for which the obligation was incurred and that such payment is a proper charge against said fund. The Trustee may conclusively rely on such Written Requisitions and shall be fully protected in relying thereon.

Upon the receipt of a Written Certificate of the City stating that the Project has been completed and that no further amounts are required to be disbursed from the Project Fund to pay Project Costs, the Trustee will close the Project Fund and transfer any remaining amounts to the Principal Account of the Bond Fund, to be applied as a credit towards the Lease Payments next coming due and payable.

SECTION 3.05. Validity of Bonds. The recital contained in the Bonds that the same are issued under the laws of the State of California shall be conclusive evidence of their validity and of compliance with the provisions of law in their issuance.

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ARTICLE IV

REDEMPTION OF BONDS
SECTION 4.01. Terms of Redemption.
(a) Optional Redemption. The Bonds maturing on or before April 1, 2029, are not subject to redemption prior to their respective stated maturities. The Bonds maturing on or after April 1, _____, are subject to redemption in whole, or in part at the at the election of the Authority among maturities on such basis as shall be designated by the Authority and by lot within a maturity, at the option of the Authority, on any date on or after April 1, _____, from any available source of funds, at a redemption price equal to the principal amount thereof to be redeemed together with accrued interest thereon to the redemption date, without premium.

The Authority shall give the Trustee written notice of its intention to redeem Bonds under Section 4.01(a) and Section 4.01(c), and the manner of selecting such Bonds for redemption from among the maturities thereof, in sufficient time to enable the Trustee to give notice of such redemption in accordance with Section 4.03. (b) The Term Bonds are subject to mandatory redemption in part by lot, at a redemption price equal to 100% of the principal amount thereof to be redeemed, without premium, in the aggregate respective principal amounts and on April 1 in the respective years as set forth in the following table; provided, however, that if some but not all of such Term Bonds have been redeemed pursuant to an optional redemption or special mandatory redemption from insurance or condemnation proceeds, the total amount of all future sinking fund payments shall be reduced by the aggregate principal amount of such Bonds so redeemed, to be allocated among such sinking fund payments on a pro rata basis in integral multiples of $5,000 (as set forth in a schedule provided by the Authority to the Trustee).

Term Bonds Maturing April 1, _________
Sinking Fund
Redemption Date
(April 1)
Principal Amount
To Be Redeemed
(maturity)
(c) Extraordinary Mandatory Redemption. The Bonds are subject to mandatory redemption prior to maturity in whole or in part among maturities as determined by the Authority, on any date, at a redemption price equal to 100% of the principal amount thereof to be redeemed (plus accrued but unpaid interest to the redemption date), without premium, from Net Proceeds received under Section 5.5 of the Lease Agreement and from amounts deposited in the Insurance and Condemnation Fund pursuant to Section

5.07 hereof, and any other funds available for such purpose under this Indenture.

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SECTION 4.02. Selection of Bonds for Redemption. Whenever provision is made in this Indenture for the redemption of less than all of the Bonds, the Bonds shall be selected for redemption on a pro-rata basis among outstanding maturities or as otherwise directed by the Authority. For purposes of such selection, the Trustee shall treat each Bond as consisting of separate $5,000 portions and each such portion shall be subject to redemption as if such portion were a separate Bond.

SECTION 4.03. Notice of Redemption; Rescission. The Trustee shall mail notice of redemption of the Bonds by first class mail, postage prepaid, not less than 20 nor more than 60 days before any redemption date, to the respective Owners of any Bonds designated for redemption at their addresses appearing on the Registration Books and to one or more Securities Depositories and to the Information Services. Each notice of redemption shall state the date of the notice, the redemption date, the place or places of redemption, whether less than all of the Bonds (or all Bonds of a single maturity) are to be redeemed, the CUSIP numbers and (in the event that not all Bonds within a maturity are called for redemption) Bond numbers of the Bonds to be redeemed and the maturity or maturities of the Bonds to be redeemed, and in the case of Bonds to be redeemed in part only, the respective portions of the principal amount thereof to be redeemed. Each such notice shall also state that on the redemption date there will become due and payable on each of said Bonds the redemption price thereof, and that from and after such redemption date interest thereon shall cease to accrue, and shall require that such Bonds be then surrendered. Neither the failure to receive any notice nor any defect therein shall affect the sufficiency of the proceedings for such redemption or the cessation of accrual of interest from and after the redemption date. Notice of redemption of Bonds shall be given by the Trustee, at the expense of the Authority, for and on behalf of the Authority.

The Authority has the right to rescind any notice of the redemption of Bonds under Section 4.01(a) by written notice to the Trustee on or prior to the dated fixed for redemption. Any notice of optional redemption shall be cancelled and annulled if for any reason funds will not be or are not available on the date fixed for redemption for the payment in full of the Bonds then called for redemption, and such cancellation shall not constitute an Event of Default. The Authority and the Trustee have no liability to the Bond Owners or any other party related to or arising from such rescission of redemption. The Trustee shall mail notice of such rescission of redemption in the same manner as the original notice of redemption was sent under this Section.

SECTION 4.04. Partial Redemption of Bonds. Upon surrender of any Bonds redeemed in part only, the Authority shall execute and the Trustee shall authenticate and deliver to the Owner thereof, at the expense of the Authority, a new Bond or Bonds of authorized denominations equal in aggregate principal amount to the unredeemed portion of the Bonds surrendered.

SECTION 4.05. Effect of Redemption. Notice of redemption having been duly given as aforesaid, and moneys for payment of the redemption price of, together with interest accrued to the date fixed for redemption on, including any applicable premium, the Bonds (or portions thereof) so called for redemption being held by the Trustee, on the redemption date designated in such notice, the Bonds (or portions thereof) so called for redemption shall become due and payable, interest on the Bonds so called for redemption shall cease to accrue, said Bonds (or portions thereof) shall cease to be entitled to any benefit or security under this Indenture, and the Owners of said Bonds shall have no rights in respect thereof except to receive payment of the redemption price thereof.

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