Ukiah City Council
July 20, 2022

LDA PARTNERS 25
Project Schedule

Conflict of Interest Statement

LDA PARTNERS 26
Conflict of Interest Statement
Conflict of Interest Statement
Our firm has no on-going or potential financial, business, or other relationship with the City of Ukiah or its employees; that could constitute a Conflict of Interest for this project. Our firm and team have no current clients that may have a financial interest in the outcome of this project.

Insurance Coverage

LDA PARTNERS 27
Insurance Coverage
LDA’s Insurance Coverage
General Liability: Insurer A: Ohio Security Insurance Company Insurer B: American Fire & Casualty
Policy #BKS56152718
$1,000,000 per occurrence
$2,000,000 aggregate
Auto: Policy #BKS56152718
$1,000,000 per occurrence
$1,000,000 per aggregate
Worker’s Comp: Hanover Insurance Co.

Policy #LHC H215847 02
$2,000,000 per claim
$4,000,000 per aggregate
Professional Liability: The Hanover Insurance Company
Policy #LHC H215847 00
$2,000,000 per claim
$4,000,000 per aggregate

Billing Rate Schedule

LDA PARTNERS 28
Billing Rate Schedule

COST OF HOURLY SERVICES
Hourly services shall be provided at the schedule stipulated below:

Architect
Principal Architect $275/hour
Project Architect/Manager $250/hour
Project Designer/Planner $200/hour
Draftsperson $150/hour
Clerical/Staff $ 85/hour
Civil Engineering:

Project Manager $203/hour
Engineer II $157/hour
Engineer I $129/hour
Technician $155/hour
Resident Engineer $145/hour
Technical Writer $125/hour
Clerical $85/hour
Survey Prevailing
Wage
Environmental Consultant:

Principal $225/hour
Senior Planner $175/hour
Environmental Planner $145/hour
Graphic Artist $125/hour
Clerical $85/hour

PROPOSED FEE FOR ARCHITECTURAL & PLANNING SERVICES
This preliminary Rate Schedule to be confirmed upon a final negotiated Scope of Work as mutually agreed upon by LDA Partners and the City. We have itemized each trade’s hourly rate .

GENERAL EXCLUSIONS
• All reproduction costs.
• Any testing or inspections required before, during or after construction of the proposed facilities. • Additional services beyond those listed herein.
• On-site verification of utilities, hidden building components etc. • Additional services caused by project delays or interruption. • Hazardous Materials Investigations
• Any agency fees required by this work.
• Revisions to plans beyond the initial revisions contemplated herein. Any revisions beyond those contemplated will be performed on an hourly basis, in accordance with the schedule listed herein. • LDA Partners cannot assume responsibility for construction means, methods, techniques, sequences or procedures, safety precautions, programs connected with the work, or for acts and omissions by the Contractor, subcontractors, or others. • Flood Plain Remediation.
• LEED or Cal Green Commissioning
• LEED documentation or design.

Electrical Engineering:

Principal $270/hour
Associate Engineer $ 230/hour
Project Manager $210/hour
Designer $190/hour
BIM Tech $160/hour
Admin $ 125/hour
Structural Engineering:

Principal Engineer $180/hour
Engineer $120/hour
Tech $90/hour
Mechanical/Plumbing Engineering:

Principal $220/hour
Project Manager $195/hour
Engineer $158/hour
Designer $135/hour
Field Services $190/hour
Project Admin $105/hour
Clerical $85/hour

29 City of Ukiah
Billing Rate Schedule

REIMBURSABLE EXPENSES
Reimbursable expenses are in addition to the compensation for basic services and shall include the actual expenditures made by the Architect and his employees in the interest of the project, at cost plus 10%, which are itemized as follows:

Reproduction Costs
Shipping/Postage
Computer Plotting
Mileage/Travel outside of San Joaquin County
ITEMIZED EXPENSES:
24 x 36 Plot( in-house): $5.00
30 x42 Plot (in-house): $7.50
Mileage: $.585 / mile (Federal Rate)
AGREEMENT REVIEW:

Section 6.2 Indemnity to comply with California Civil Code Section 2782.8.

Cost Estimating:

Principal $250/hour
Senior Estimator $150/hour
Project Engineer $110/hour
Clerical $85/hour
Industrial Equipment:

Project Manager $175/hour
Technician $155/hour

Environmental
Documents Fee
Civil
Engineering
Fee
Structural
Engineering
Fee
Mechanical
Engineering
Fee
Electrical
Engineering
Fee
Industrial
Equipment
Design Fee
Cost Estimating
Fee
Base Hourly Rate ($/ hour) 225.00 200.00 185.00 175.00 165.00 135.00 90.00 225.00 175.00 145.00 125.00 85.00 203.00 157.00 129.00 180.00 120.00 90.00 220.00 195.00 158.00 135.00 105.00 190.00 270.00 230.00 210.00 190.00 160.00 125.00 175.00 155.00 150.00 Task # Task Description
1 Condition and Needs Assessment 34 85 20 12 151 $ 29,030.00 0 $ - 52 52 $ 10,556.00 20 24 44 $ 6,480.00 28 5 14 47 $ 9,347.00 7 6 6 6 4 29 $ 6,170.00 20 6 26 $ 4,430.00 0 $ - 2 Environmental Documents 10 30 4 44 $ 7,910.00 20 20 10 16 66 $ 11,450.00 0 $ - 0 $ - 0 $ - 0 $ - 0 $ - 0 $ - 2A Initial Study/Traffic Study/ ESA Phase 1/Mitigated Negative Declaration 35 60 4 99 $ 18,460.00 45 100 80 30 50 305 $ 47,225.00 0 $ - 0 $ - 0 $ - 0 $ - 0 $ - 0 $ - 3 Preliminary Design (Draft Plans, Specs) 40 195 80 85 270 345 8 1023 $ 169,520.00 0 $ - 28 46 46 120 $ 18,840.00 28 115 200 343 $ 36,840.00 14 10 35 24 10 93 $ 14,850.00 12 46 70 70 58 12 268 $ 52,600.00 35 80 115 $ 18,525.00 20 20 $ 3,000.00 4 Detailed Design (Final Plans, Specs) 60 325 45 415 545 8 1398 $ 229,145.00 0 $ - 40 70 60 170 $ 26,850.00 38 230 225 493 $ 54,690.00 35 42 184 92 30 383 $ 60,532.00 14 35 80 80 92 20 321 $ 61,050.00 40 120 160 $ 25,600.00 38 38 $ 5,700.00 5 Cost Estimating 25 40 4 8 4 81 $ 16,005.00 0 $ - 6 20 26 $ 3,798.00 0 $ - 0 $ - 0 $ - 0 $ - 130 130 $ 19,500.00 6 Construction Administration 45 215 280 24 564 $ 101,485.00 0 $ - 20 20 $ 4,060.00 14 104 104 222 $ 24,360.00 10 5 10 28 58 111 $ 18,715.00 12 20 38 38 12 14 134 $ 26,710.00 25 25 $ 4,375.00 $ 15,265.00 204 905 170 134 993 890 64 3360 $ 571,555.00 65 120 90 46 50 371 $ 58,675.00 146 116 126 388 $ 64,104.00 100 473 529 1102 $ 122,370.00 87 62 243 116 68 58 634 $ 103,444.00 45 107 194 194 162 50 752 $ 146,530.00 120 206 326 $ 52,930.00 188 188 $ 43,465.00 $ 35,000.00 $ 2,500.00 $ 3,500.00 $ 3,000.00 $ 4,500.00 $ 4,500.00 $ 2,500.00 $ - $ 606,555.00 $ 61,175.00 $ 67,604.00 $ 125,370.00 $ 107,944.00 $ 151,030.00 $ 55,430.00 $ 43,465.00 Total Contract: $ 1,218,573.00
The Engineering Enterprise

ELECTRICAL ENGINEERING
PrincipalAssociateProject ManagerDesignerBIMAdmin
Total Hours
INDUSTRIAL EQUIPMENT DESIGN Technical Drafting/modeling Total Hours Project Manager Capital Engineering

MECHANICAL ENGINEERING
PrincipalProject ManagerEngineerDesignerProject AdminField Services Total Hours
JR Conkey
COST ESTIMATING Total Hours
Structural EngineerTechnical Drafting/modelingSenior Estimator Lawder Engineering

STRUCTURAL ENGINEERING
Principal Structural Engineer
Total Hours

CIVIL ENGINEERING
Project Manager
Total Hours
Engineer II
Basecamp Environmental

ENVIRONMENTAL
Air and Lube Systems
City of Ukiah Corporation Yard
PlannerDesignerJob CaptainDraftspersonClerical
Total Hours
Total Labor and Reimbursables:

PRIME CONSULTANT
LDA PARTNERS CSWST2
Subtotal

REIMBURSABLES
PrincipalSenior Planner
Printing, postage, communication, travel expenses, project related expenses, mileagePrincipal Architect Project Manager/ArchitectEnvironmental PlannerGraphic ArtistWord ProcessingEngineer I Total Hours
ATTACHMENT 3

Project Name: CIP Corporation Yard Design
Prepared by: Matt Kennedy
Reviewed by: Dan Reiter
Job Number: 12571668.PP

TOTAL OTHER CONSULTANT TOTAL TOTAL

HOURS DIRECT BURDENED SUB FEES FEE

TASK COSTS LABOR COSTS
Task 1 Project Management and Coordination 293 $3,582.50 $74,736.00 $0.00 $78,318.50 Task 2 Field and Existing Information Review 160 $2,727.60 $32,406.00 $0.00 $35,133.60 Task 3 Topographic and Boundary Survey 152 $19,565.60 $28,360.00 $0.00 $47,925.60 Task 4 Design Charrettes / Workshops 337 $6,469.40 $82,711.00 $10,591.50 $99,771.90 Task 5 Environmental and Permitting 292 $2,398.00 $49,910.00 $5,175.00 $57,483.00 Task 6 Geotechnical Investigation 16 $134.00 $4,160.00 $31,970.00 $36,264.00 Task 7 Preliminary Design 4010 $30,190.80 $729,994.00 $28,865.00 $789,049.80 Task 8 Final Design 3253 $25,248.10 $568,376.00 $17,480.00 $611,104.10 PROJECT TASK SUBTOTALS 8513 $90,316.00 $1,570,653.00 $94,081.50 $1,755,051.00 PROJECT TOTAL $1,755,051.00
ATTACHMENT 4

Project Name: CIP Corporation Yard Design
Prepared by: Matt Kennedy
Reviewed by: Dan Reiter
Job Number: 12571668.PP
LABOR CATEGORY >
RATE > $290.00 $280.00 $290.00 $220.00 $165.00 $165.00 $165.00 $240.00 $165.00 $275.00 $165.00 $285.00 $180.00 $275.00 $200.00 $165.00 $225.00 $135.00 $200.00 $190.00 $190.00 $225.00 TASK /Hr /Hr /Hr /Hr /Hr /Hr /Hr /Hr /Hr /Hr /Hr /Hr /Hr /Hr /Hr /Hr /Hr /Hr /Hr /Hr /Hr /Hr Task 1 Project Management and Coordination

1.1 Project Initiation 4 12 2 4 2 2 2 2 4 2

1.2 Project Coordination, Reporting and Schedule 32

1.3 Project Meetings and Presentations 16 80

1.4 Quality Management 2 1 2
22 125 4 4 0 0 0 2 0 2 0 2 0 2 0 0 4 0 2 0 0 0
Task 2 Field and Existing Information Review

2.1 Review Existing Documents 1 1 8 8 4 8 8 8 4 4 4 4 4 4 4

2.2 Perform Site Visits 4 8 4 4 4 4 4 8
1 1 0 8 12 4 16 12 12 8 8 4 8 4 12 4 0 0 0 0 0 0
Task 3 Topographic and Boundary Survey

3.1 Finalize Topographic Survey 1 24

3.2 Utility Investigations 1 8

3.3 Boundary Survey 1 40

3.4 Mapping Development 1 4 8 8 32
0 4 0 4 8 0 8 0 0 0 0 0 0 0 0 0 0 0 0 0 104 0
Task 4 Design Charrettes / Workshops

4.1 Project Programming Workshop 1 8 16 12 12 12 2 2 2

4.2 Project Planning Workshop 2 8 16 12 12 12 2 3 2 8

4.2 Preliminary Design Workshop 3 8 16 12 12 12 2 4 2 8 24 48 0 36 0 0 0 36 0 36 0 6 0 9 0 0 0 0 6 16 0 0
Task 5 Environmental and Permitting

5.1 Prepare Admin Draft IS & Proposed MND 2 6 12 42 118 12

5.2 Prepare Checkdraft, Circulate Public Review IS/MND 2 4 10 24

5.3 Consider Comments, Prepare MMP, NOD (5 comments, 1 mtg) 2 16 16 2 8 18 0 0 0 0 0 0 0 0 0 0 0 0 0 68 158 0 12 0 0
Task 6 Geotechnical Investigation

6.1 Preliminary Geotechnical Investigation 1 2 1 2

6.2 Design-Level Geotechnical Investigation 1 4 1 2

6.3 Engineering Design Consultation
2 6 2 0 0 0 0 0 0 0 0 0 0 4 0 0 0 0 0 0 0 0
Task 7 Preliminary Design

7.1 Schematic Design (SD-30%) 12 24 8 40 64 40 40 32 52 32 52 16 40 40 40 64 24 8 2

7.2 Design Development (DD-60%) 12 32 8 64 80 64 64 80 140 40 148 24 64 80 80 120 40 8 4 24 56 16 104 144 104 104 112 192 72 200 40 104 120 120 184 0 0 64 16 0 6 Task 8 Final Design

8.1 Pre-Final Construction Documents (CD-95%) 12 32 8 64 80 64 64 80 140 40 148 24 64 80 80 120 48 8 8

8.2 Final Construction Documents (CD-100%) 8 16 8 32 32 8 24 24 42 24 42 12 32 32 32 40 16 2 6 20 48 16 96 112 72 88 104 198 64 190 36 96 112 112 160 0 0 64 10 0 14 PROJECT TASK SUBTOTALS 95 296 56 252 276 180 216 266 402 182 398 88 208 251 244 348 72 158 136 54 104 20

PROJECT TOTAL
(1) OTHER DIRECT COSTS include telephone, vehicle mileage, printing, reproduction and other miscellaneous direct expenses.

Subtotal Task 7
Subtotal Task 8
Subtotal Task 6
Subtotal Task 5
Envir
Landscape
Architect
Sr. Elec.

Engr
Sr. Structural
Engr
Structural
Engr
Sr. Mech.

Engr Principal Sr. Envir Civil Engineer
Staff
Structural
Land
Surveying
Constructability
Site
Visualizatio

GHD - PROJECT FEE ESTIMATING SHEET
Quality
Manager PM Mech. Engr

LABOR COSTS
H/H Engr Staff Utility
Engr Sr. Elec. Engr Staff Civil Engr
Subtotal Task 1
Subtotal Task 2
Subtotal Task 4
Subtotal Task 3
Sr. FPE/Life
Safety
FPE/Life
Safety
5/11/2022 Page 1
ATTACHMENT 5

Project Name: CIP Corporation Yard Design
Prepared by: Matt Kennedy
Reviewed by: Dan Reiter
Job Number: 12571668.PP
LABOR CATEGORY >
RATE >
TASK
Task 1 Project Management and Coordination

1.1 Project Initiation

1.2 Project Coordination, Reporting and Schedule

1.3 Project Meetings and Presentations

1.4 Quality Management
Task 2 Field and Existing Information Review

2.1 Review Existing Documents

2.2 Perform Site Visits
Task 3 Topographic and Boundary Survey

3.1 Finalize Topographic Survey

3.2 Utility Investigations

3.3 Boundary Survey

3.4 Mapping Development
Task 4 Design Charrettes / Workshops

4.1 Project Programming Workshop 1

4.2 Project Planning Workshop 2

4.2 Preliminary Design Workshop 3
Task 5 Environmental and Permitting

5.1 Prepare Admin Draft IS & Proposed MND

5.2 Prepare Checkdraft, Circulate Public Review IS/MND

5.3 Consider Comments, Prepare MMP, NOD (5 comments, 1 mtg) Task 6 Geotechnical Investigation

6.1 Preliminary Geotechnical Investigation

6.2 Design-Level Geotechnical Investigation

6.3 Engineering Design Consultation
Task 7 Preliminary Design

7.1 Schematic Design (SD-30%)

7.2 Design Development (DD-60%)
Task 8 Final Design

8.1 Pre-Final Construction Documents (CD-95%)

8.2 Final Construction Documents (CD-100%)

PROJECT TASK SUBTOTALS

PROJECT TOTAL
(1) OTHER DIRECT COSTS include telephone, vehicle mileage, printing, reproduction and other miscellaneous direct expenses.

Subtotal Task 7
Subtotal Task 8
Subtotal Task 6
Subtotal Task 5
Subtotal Task 1
Subtotal Task 2
Subtotal Task 4
Subtotal Task 3
Client: City of Ukiah
Date: May 12, 2022
TOTAL OTHER GHD+TLCD FULLY SUB SUB SUB TOTAL TOTAL
HOURS DIRECT BURDENED Valerius Miller Pacific Cromb SUB FEES FEE $276.00 $276.00 $242.00 $213.00 $190.00 $184.00 $173.00 $165.00 $120.00 $75.00 $110.00 COSTS (1) LABOR COSTS (Biology) (Geotech) (Cost Estimate) W/MARKUP /Hr /Hr /Hr /Hr /Hr /Hr /Hr /Hr /Hr /Hr /Hr 15%
12 8 1 6 63 $937.10 $15,413.00 $0.00 $16,350.10
20 8 60 $390.00 $14,680.00 $0.00 $15,070.00
20 30 8 154 $2,151.40 $40,700.00 $0.00 $42,851.40
8 1 2 16 $104.00 $3,943.00 $0.00 $4,047.00
40 0 58 0 0 0 0 0 0 2 24 293 $3,582.50 $74,736.00 $0.00 $0.00 $0.00 $0.00 $78,318.50 10 20 104 $676.00 $21,270.00 $0.00 $21,946.00
8 8 56 $2,051.60 $11,136.00 $0.00 $13,187.60
0 0 18 0 28 0 0 0 0 0 0 160 $2,727.60 $32,406.00 $0.00 $0.00 $0.00 $0.00 $35,133.60 25 $3,740.10 $4,840.00 $0.00 $8,580.10
9 $15,058.50 $1,800.00 $0.00 $16,858.50
41 $266.50 $7,880.00 $0.00 $8,146.50
24 77 $500.50 $13,840.00 $0.00 $14,340.50
0 0 0 0 0 0 0 24 0 0 0 152 $19,565.60 $28,360.00 $0.00 $0.00 $0.00 $0.00 $47,925.60 12 12 12 2 2 106 $2,115.30 $26,282.00 $0.00 $28,397.30
12 12 12 2 2 115 $2,173.80 $28,077.00 $0.00 $30,250.80
12 12 12 2 2 116 $2,180.30 $28,352.00 $9,210.00 $10,591.50 $41,123.80 36 0 36 36 0 0 0 0 0 6 6 337 $6,469.40 $82,711.00 $0.00 $0.00 $9,210.00 $10,591.50 $99,771.90 8 8 208 $1,852.00 $35,240.00 $4,500.00 $5,175.00 $42,267.00 2 4 46 $299.00 $7,890.00 $0.00 $8,189.00
4 38 $247.00 $6,780.00 $0.00 $7,027.00
0 0 0 0 0 0 0 0 10 0 16 292 $2,398.00 $49,910.00 $4,500.00 $0.00 $0.00 $5,175.00 $57,483.00 1 7 $45.50 $1,800.00 $9,800.00 $11,270.00 $13,115.50
1 9 $88.50 $2,360.00 $16,000.00 $18,400.00 $20,848.50
0 $0.00 $0.00 $2,000.00 $2,300.00 $2,300.00
0 0 0 0 0 0 0 0 0 0 2 16 $134.00 $4,160.00 $0.00 $27,800.00 $0.00 $31,970.00 $36,264.00 60 60 60 240 220 160 180 2 2 1614 $12,351.40 $314,420.00 $10,900.00 $12,535.00 $339,306.40 24 60 60 240 220 220 160 256 2 2 2396 $17,839.40 $415,574.00 $14,200.00 $16,330.00 $449,743.40 84 120 120 480 220 220 220 320 436 4 4 4010 $30,190.80 $729,994.00 $0.00 $0.00 $25,100.00 $28,865.00 $789,049.80 30 40 60 240 220 220 180 256 2 3 2415 $18,357.90 $417,620.00 $9,250.00 $10,637.50 $446,615.40 16 20 30 60 60 72 64 80 2 2 838 $6,890.20 $150,756.00 $5,950.00 $6,842.50 $164,488.70 46 60 90 300 280 0 292 244 336 4 5 3253 $25,248.10 $568,376.00 $0.00 $0.00 $15,200.00 $17,480.00 $611,104.10 206 180 322 816 528 220 512 588 782 16 57 8,513 $90,316.00 $1,570,653.00 $4,500.00 $27,800.00 $49,510.00 $94,081.50 $1,755,051.00 $1,755,051.00
Principal
Architect
Interior
Designer
Word
Processing Proj Captain Sr Arch Designer
Architectural
Mngr CAD Tech

FEE COMPUTATION
Proj
Architect
Project
Admin
Sr. CAD
Tech
Arch
Designer
5/11/2022 Page 2

Agenda Item No: 7.o.

MEETING DATE/TIME: 7/20/2022
ITEM NO: 2022-1835

AGENDA SUMMARY REPORT
SUBJECT: Report of the Acquisition of Parts and Labor for the Repair of the 2018 Pierce Fire Engine from Golden State Emergency Vehicle Services Inc. in the Amount of $53,505.32, and Approval of Corresponding Budget Amendments.

DEPARTMENT: Public Works PREPARED BY: Seth Strader, Administrative Analyst PRESENTER: Tim Eriksen, Director of Public Works
ATTACHMENTS:

1. Repair Estimate 1446678

2. 00048057

3. UPD # 22-0886 Invoice
Summary: Council will receive a report of the acquisition of parts and labor for the repair of the 2018 Pierce fire engine from Golden State Emergency Vehicle Services Inc. and consider approving a corresponding budget amendment.

Background: While responding to an emergency, a Fire Authority engine suffered body and other damage at the site caused by a third party vehicle. City Risk Management is in contact with the insurance company that will reimburse part or all of the expenses.

Discussion: Garage Staff reached out to the original equipment manufacturer, Goldenstate Emergency Vehicle Services, and got a repair estimate (Attachment 1) for the parts and labor needed to bring the vehicle back to operation. A Purchase Order (Attachment 2) was completed and issued to Goldenstate to begin with the repairs.

There are currently sufficient budgeted funds for this repair but, due to the scale of the expense, Staff is requesting a budget amendment to replenish the vehicle repair account to supply sufficient funds for future repairs. A budget amendment is also being requested for the anticipated insurance proceeds to be received. This is per the invoice submitted by the Risk Management department, provided as Attachment 3.

Recommended Action: Receive report of the acquisition of parts and labor for the repair of a 2018 Pierce Fire Engine from Golden State Emergency Vehicle Services in the amount of $53,505.32, and approve the corresponding budget amendments.

BUDGET AMENDMENT REQUIRED: Yes
CURRENT BUDGET AMOUNT: 10521210.56130.V6881: $0.00
PROPOSED BUDGET AMOUNT: 10521210.56130.V6881: $53,505.32; 10521210.48110.V6881: $53,505.32 FINANCING SOURCE: Insurance Proceeds
PREVIOUS CONTRACT/PURCHASE ORDER NO.: PO 48057
COORDINATED WITH: Dave Kirch, Fleet Maintenance Supervisor; Sheri Mannion, HR and Risk Manager; Mary Horger, Financial Services Manager

1320 Airport Road
Ukiah CA 95482

CITY OF UKIAH FIRE DEPARTMENT
Repair Order
Estimate To:

Estimate
Golden State Emergency Vehicle Service Inc.
7400 Reese Road
Sacramento, CA 95828-3706
Tel. : (916) 330-1638
Fax. : (916) 330-1649
Phone: (707) 467-5784
RE000385
Payment Term
Jun 20, 2022
Estimate
PIE-0174 NET30
Date A/C
21 /
Page
Unit 32041-01 VIN 4P1BAAFF0JA019433
Pumper, Short, Aluminum, 2nd Gen
Make PIERCE Model ENFORCER Year Engine 2018
Activity Description
Part Number Part Description Quantity Charge Total

1. A.) Wreck Repair Estimate 265.00 HR 165.00 43725.00
Repairs per attached breakdown.
14-2459 FRAMING,VERT,LH,OVER WHEEL,ALU LAP,3.00 X 30.00 1.00 EA 103.8959 103.90 14-2460 FRAMING,VERT,RH,OVER WHEEL,ALU LAP,3.00 X 30.00 1.00 EA 107.6370 107.64 1704560-0239 DOOR,SGLE-AL,31.50 X 61.75 F-F 1.00 EA 1361.7180 1361.72 2363661 BRKT,CAMPER STEP,ALUM UTILITY,2G 2.00 EA 106.6238 213.25 2485433-0023 TRIM,SEAM,HATCH/COMPARTMENT,AL SIDE,PAINTED,124"L BODY 2.00 EA 82.2648 164.53 2516584 STEP, ASSY,CAMPER,DBL,ALUM 12.00"W 1.00 EA 313.6883 313.69 2516640 STEP,4-WAY,CAMPER STYLE 12.00"W 1.00 EA 117.2239 117.22 2670443 BRKT,TOOLBOARD MTG,AL LAP,PUMPER 2.00 EA 152.1091 304.22 3104220 SUPPORT,SPLIT TB,DS,10.0 45 DEGREE CORNER,PUC 3104220 1.00 EA 1014.5314 1014.53 3153863 PARTITION,RR,DS,AL,72.0 DEF TANK MTG,3 RSD RR 1.00 EA 572.2033 572.20 3192166-0001 (**) LIGHT,AMDOR,LUMA BAR 12",LED,H-H2O HI OUT H20,AY-LB- 1.00 EA 100.3093 100.31 32041BD BULKHEAD, REAR DS 1.00 EA 0.0000 0.00
32041FD FNDR PNL,DS 1.00 EA 691.6084 691.61
3227555 FALSE BKHD,LS,RR,AL,72.00 FDLER,3.00 RAISED RR 1.00 EA 280.6901 280.69 3235195 FENDER CROWN LH SS 27 14 GA REAR 1.00 EA 387.6126 387.61 4060738 SEAL,DOOR,D SECTION,BLACK 100 FOOT ROLL 100.00 FT 0.6374 63.74 94-5010 GASKET,D-RING HNDL,KEY,PLN FLG PSA 2-SIDES, 80-2267 1.00 EA 7.2027 7.20 CSQ220526- DS REAR WALL PANEL 1.00 EA 467.8886 467.89
Activity Sub-total: 49996.95

2. Travel Time 7.75 HR 165.00 1278.75
Round trip travel to customer location to develop estimate.

Activity Sub-total: 1278.75
ATTACHMENT 1

1320 Airport Road
Ukiah CA 95482

CITY OF UKIAH FIRE DEPARTMENT
Repair Order
Estimate To:

Estimate
Golden State Emergency Vehicle Service Inc.
7400 Reese Road
Sacramento, CA 95828-3706
Tel. : (916) 330-1638
Fax. : (916) 330-1649
Phone: (707) 467-5784
RE000385
Payment Term
Jun 20, 2022
Estimate
PIE-0174 NET30
Date A/C
2 /2
Page
Activity Description
Part Number Part Description Quantity Charge Total

3. C.) Rear Thrust Angle 1.00 HR 1000.00 1000.00
This would be a sublet activity and we have estimated $1K.

Activity Sub-total: 1000.00
PAYMENT(S): Remit payment to:

Golden State Emergency Vehicle Service, Inc.
7400 Reese Road
Sacramento, CA 95828
If desired, credit card payments can be made by logging onto goldenstatefire.com. You will need the invoice number to pay online.

RETURN(S): All electrical parts are final. Notification must be received within 30 calendar days from invoice date. Authorization(s) are dependent upon OEM approval, restocking and other fees may apply.

PARTS ONLY CREDIT MEMO POLICY: If applicable, credit memo to be applied in its entirety to balance within 30 days of notice date. If not applied, refund check will be issued to the address on invoice.

EPA# CAL000402744
Signature:_______________________________
Total Labor:

Total Parts:

Shop Supplies:

SubTotal:

ESTIMATE TOTAL:
6,271.95
46,003.75
690.06
53,505.32
Total TAX: 539.56
52,965.76

Purchase Order
Purchase
Order #

THIS NUMBER MUST APPEAR ON ALL INVOICES,
PACKAGES AND SHIPPING PAPERS.

Fiscal Year Page of
Delivery must be made within
doors of specified destination.

RECEIVING COPY PO Total
B
I
L
L
T
O
V
E
N
D
O
R
S
H
I
P
T
O
Vendor Phone Number Vendor Fax Number Buyer Date Ordered Date Required Item# Description/Part No. Qty UOM Unit Price Extended Price

CITY OF UKIAH
ATTN: ACCOUNTS PAYABLE
300 SEMINARY AVENUE
UKIAH, CA 95482
Delivery Reference Freight Method/Terms Department/Location Sales Tax Rate 2023 1 1
48057-00

GOLDEN STATE EMERGENCY VEHICLE SERVICE INC
7400 REESE RD
SACRAMENTO CA 95828

CITY OF UKIAH - FIRE DEPT
300 SEMINARY AVENUE
UKIAH CA 95482
916-330-1638 Mary Horger 07/01/2022
FOB UKIAH/N30 FIRE DEPARTMENT 0.000
$53,505.32
1 LABOR FOR THE REPAIR OF 2018 PIERCE 46003.8 DOLL $1.000 $46,003.75 ENFORCER VIN 4P1BAAFF0JA019433
105.10.00.21.212.2121.21210.56130.V6881 $46,003.75
2 PARTS 6271.9 DOLL $1.000 $6,271.95
105.10.00.21.212.2121.21210.56130.V6881 $6,271.95
3 SHOP SUPPLIES 690.1 DOLL $1.000 $690.06
105.10.00.21.212.2121.21210.56130.V6881 $690.06
4 TAX 539.6 DOLL $1.000 $539.56
105.10.00.21.212.2121.21210.56130.V6881 $539.56
REF REQ E39171
AS PER REPAIR ORDER ESTIMATE RE000385 DATED
6/20/2022
ATTACHMENT 2

INVOICE
National Interstate- Policy #AAL0000179-01
Date 6/21/2022
Order No.

Rep
FOB
Qty Unit Price TOTAL
Request for reimbursement for property damages incurred on May 13,2022 at 410 McPeak st.

Damage to City of Ukiah Fire Truck - UPD #22-0886
Vehicle driver - Brian Bosque
City of Ukiah Garage Department (see attached invoice) 435.00 $ Eighteen Wheel Mobile Truck Alignment 400.00 $
Golden State Emergency Vehicle Service 53,505.32 $
Paint Estimate TBD
ADMINISTRATIVE FEES (Per CA Public Contract Code Sec. 22019) 1,0 $ 00.00 Net 30
For questions, please contact Temple Cabral, HR/Risk Management Technician SubTotal 55,340.32 $
Shipping
Tax Rate(s)
TOTAL $ 55,340.32
Office Use Only
Please make checks payable to the City of Ukiah, Reference Property Damage Claim 5/13/2022 City of Ukiah
Risk Management Office
300 Seminary Avenue
Ukiah, CA 95482
(707) 467-5726
**This total is subject to change when we
receive the paint estimate**
Description
(707) 467-5726 or [email protected]
ATTACHMENT 3

Agenda Item No: 11.a.

MEETING DATE/TIME: 7/20/2022
ITEM NO: 2022-1796

AGENDA SUMMARY REPORT
SUBJECT: Public Hearing and Possible Introduction by Title Only of an Ordinance Amending Various Sections of Ukiah City Code to Streamline the Use Permit Application Process and Operational Standards for Cannabis-Related Businesses.

DEPARTMENT: Community
Development PREPARED BY: Craig Schlatter, Community Development Director PRESENTER: Craig Schlatter, Community Development
Director; Darcy Vaughn, Assistant City Attorney
ATTACHMENTS:

1. Cannabis Ordinance Amendment Redline

2. Cannabis Ordinance Amendment Clean
Summary: Council will conduct a public hearing and possibly introduce by title only an Ordinance amending various sections of Ukiah City Code to streamline the use permit application process and operational standards for cannabis-related businesses.

Background: Since the City Council's adoption of the Marijuana Dispensaries Ordinance in 2017, Council has requested annual reports from Staff related to Dispensary Use Permit applications received, approved, and withdrawn; and an evaluation of Ordinance administration and effectiveness. The 2021 annual report on the Cannabis-Related Businesses Ordinance ("the Ordinance") was due to be presented on October 6, 2021, but with over four years of data, Staff delayed the report to analyze if modifications to the Ordinance should be recommended. Staff also discussed the Ordinance's effectiveness with the Planning Commission at their January 12, 2022, regular meeting.

On February 2, 2022, Staff presented the 2021 annual report, which included Staff's recommendation that the Ordinance be modified to streamline or enhance the City's responsiveness to permitting cannabis-related businesses. Staff also recommended Council form an ad hoc committee to review potential ordinance modifications to streamline the permitting/renewal process and other potential considerations. The City Council appointed Mayor Brown and Vice-Mayor Duenas to serve on the Ad Hoc Committee and directed the Ad Hoc and Staff to bring back recommendations for potential Ordinance modification.

Discussion: The Cannabis Ordinance Ad Hoc and Staff met on March 11, 2022, and discussed possible modifications. The recommendations of the Cannabis Ordinance Ad Hoc committee have been incorporated into the proposed Ordinance of the City Council of the City of Ukiah amending various sections of the Ukiah City Code to streamline the use permit application process and operational standards for cannabis related businesses (“Cannabis Ordinance Amendment”). A redlined version of the Cannabis Ordinance Amendment (Attachment 1) and a clean version of the Amendment (Attachment 2) are attached to this report. Below are the Ad Hoc's recommendations to Council, along with supporting information and analysis from Staff.

Cannabis Ordinance Ad Hoc Recommendations and Staff Analysis

1. To the extent possible, consolidate cannabis regulations into a single article in Ukiah City Code.

Consolidating the regulations into a single article should make it simpler for prospective applicants to find

pertinent and applicable regulations for their business types, resulting in time saved during the permit review process. Staff supports this recommendation. The Cannabis Business Ordinance Amendment moves all definitions and regulations specific to cannabis retailers to a new Section 9174.3 to Article 15.7 of Chapter 2 in Division 9 of the Ukiah City Code.

2. Update terminology, definitions, and permit types to mirror State definitions.

State law requires dual licensing- i.e. the securing of both a local permit and a State license prior to operation.

By synchronizing the terminology, time will be saved for the Applicant, Staff, and State during the permitting process. Staff supports this recommendation.

3. Reduce the number of use permit renewals required. Instead of requiring the annual renewal of use permits in perpetuity, require only one renewal after the first year of operation of the cannabis-related business. Define the date upon which the cannabis-related business is in operation as the date the City's business license is received.

Cannabis-related businesses are currently the only businesses operating in the City that require an annual use permit renewal. As indicated in the 2021 annual report, cannabis-related businesses have not negatively impacted the neighborhoods in which they are located. Staff supports the Ad Hoc's recommendation to reduce this regulatory burden for the business, requiring only a one-time renewal.

4. Remove cannabis-specific parking requirements in favor of commercial parking requirements in other zoning districts. Determine parking requirements by the base zoning district's requirements rather than requiring separate parking requirements for cannabis-related businesses.

Current regulations require one parking space for every 200 gross square feet (1 sp/200 sf) of retail space, office space, and similar floor areas for cannabis retailers, whereas commercial parking requirements for noncannabis retail businesses are between 1sp/250 sf and 1 sp/300 sf gross leasable space. The Community Development Department has not seen evidence of more cars parked at cannabis retail establishments than at other types of retail businesses, nor has the Department received complaints related to parking from neighboring businesses. Basing requirements on the base zoning district would treat cannabis retailers the same as other retailers, as well as streamlining the permit review process and avoiding confusion. Staff supports this recommendation.

5. Clarify the Operating Requirements for cannabis retailers (91742.B of the Ordinance), to specify that only the security plans, security site plan, and applicant employee background checks will be maintained by the City as confidential.

The current file confidentiality requirements in Section 5708 of the Code (which are set forth in the new Section 9174.3 in the proposed Cannabis Business Ordinance Amendment) do not clearly define what parts of the use permit file are confidential. Section 5708O states: "Information provided for purposes of this section shall be maintained by the City as confidential information, and shall not be disclosed as public records unless pursuant to subpoena issued by a court of competent jurisdiction otherwise compelled by court order." In recollecting the 2017 meetings of the cannabis ad hoc committee during the drafting of the marijuana dispensaries ordinance, Staff believes the purpose of Section 5708O was to protect the privacy of employees during the required background check process and the security of the business. However, during the drafting of the first ordinance, the specifics of the application process and how regulations would change over time were not known. In practice, and because of the public nature of planning division discretionary use permit files, Staff has treated as confidential employee background checks, security site plans, and security plans.

Proposed by the ad hoc is to more prescriptively define Section 5708O to reflect current practice. Staff supports this recommendation. Since Section 5708 will be repealed by the proposed Cannabis Business Ordinance Amendment, this proposed amendment appears in Section 9174.2.B.8 and applies to all cannabis businesses generally.

6. Enable an administrative withdrawal procedure for all cannabis-related businesses.

For all cannabis businesses except dispensaries, there is an administrative withdrawal procedure in UCC Section 5709D that enables Staff to deem an application as withdrawn if no response to an incomplete letter is received from the Applicant within thirty (30) days. This is a helpful tool that saves both Finance and Community Development Department Staff time in the tracking and processing of outdated and stagnant projects. Proposed with this recommendation is to enable an administrative withdrawal procedure for dispensaries, treating all cannabis-related businesses the same. Staff supports this recommendation.

7. Amend UCC Section 5707A to permit both medical and adult use retail cannabis businesses in the CN (Neighborhood Commercial) zoning district.

UCC Section 5707A currently allows only medical cannabis dispensaries in the CN zoning district. The ad hoc recommendation would add adult use retail so that both medical and adult use retail cannabis businesses are allowed in the CN zoning district.

Given the uses surrounding CN districts, which consist mostly of R1 (single-family residential) and R2 (medium-density residential), plus the proximity limitations to sensitive uses such as schools, it is challenging to establish a cannabis business in a CN zoned district. To date, Department staff have received no applications for cannabis related businesses located on any of the CN zoned parcels. Although Staff supports the Ad Hoc's recommendation, in practice it may continue to be difficult for cannabis-related businesses to locate in CN zoning districts.

Staff recommends Council conduct the public hearing and introduce by title only the Ordinance in Attachment 2 amending various sections of the Ukiah City Code to streamline the use permit application process and operational standards for cannabis related businesses.

Recommended Action: Conduct a public hearing and introduce by title only the Ordinance of the City Council of the City of Ukiah amending various sections of the Ukiah City Code to streamline the use permit application process and operational standards for cannabis-related businesses.

BUDGET AMENDMENT REQUIRED: No
CURRENT BUDGET AMOUNT: N/A
PROPOSED BUDGET AMOUNT: N/A
FINANCING SOURCE: N/A
PREVIOUS CONTRACT/PURCHASE ORDER NO.: N/A
COORDINATED WITH: Darcy Vaughn, Assistant City Attorney; Michelle Irace, Planning Manager; Jesse Davis, Planning Manager

1 ORDINANCE NO.

ORDINANCE OF THE CITY COUNCIL OF THE CITY OF UKIAH AMENDING

VARIOUS SECTIONS OF THE UKIAH CITY CODE TO AMEND THE USE PERMIT

APPLICATION PROCESS AND OPERATIONAL STANDARDS FOR CANNABIS RELATED BUSINESSES.

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

SECTION 1
Chapter 8 in Division 6 of the Ukiah City Code is hereby repealed in its entirety.

SECTION 2
Article 6 of Chapter 2 in Division 9 of the Ukiah City Code, pertaining to the Neighborhood Commercial (C-N) Zoning District is hereby amended to read as follows (unchanged text is omitted and is shown by “* * *”):
§9062 USES PERMITTED WITH SECURING OF A USE PERMIT
The following uses may be permitted in neighborhood commercial (C-N) districts, subject to first securing a use permit pursuant to provisions contained in section 9262 of this chapter:
***
Cannabis Retailer
SECTION 3
Article 7 of Chapter 2 in Division 9 of the Ukiah City Code, pertaining to the Community Commercial (C-1) Zoning District is hereby amended to read as follows (unchanged text is omitted and is shown by “* * *”):
§9082 PERMITTED USES
The following uses require approval of a use permit pursuant to the provisions contained in section 9262 of this chapter:
***
Cannabis Cultivation - Processoring
Cannabis Manufacturering – Packaging
Cannabis Manufacturering – Shared Use
* * *
SECTION 4
Attachment 1

2 Article 8 of Chapter 2 in Division 9 of the Ukiah City Code, pertaining to the Heavy Commercial (C-2) Zoning District is hereby amended to read as follows (unchanged text is omitted and is shown by “* * *”):
§9097 PERMITTED USES
The following uses require approval of a use permit pursuant to the provisions contained in section 9262 of this code:
***
Cannabis Cultivation – Processor
***
Cannabis Manufacturer – Packaging
Cannabis Manufacturer – Shared Use
***
SECTION 5
Article 9 of Chapter 2 in Division 9 of the Ukiah City Code, pertaining to the Manufacturing (M) Zoning District is hereby amended to read as follows (unchanged text is omitted and is shown by “* * *”):
§9112 USES PERMITTED SUBJECT TO FIRST SECURING A USE PERMIT The following uses may be permitted in Manufacturing (M) Districts subject to first securing a use permit, as provided in this chapter, in each case:

A. Cannabis cultivation – Large indoor.

B. Cannabis cultivation – Large mixed light.

C. Cannabis cultivation – Medium indoor.

D. Cannabis cultivation – Medium mixed light.

Cannabis cultivation – Processor.

E. Cannabis cultivation – Small indoor.

F. Cannabis cultivation – Small mixed light.

G. Cannabis cultivation – Specialty cottage.

H. Cannabis cultivation – Specialty indoor.

I. Cannabis cultivation – Specialty mixed light.

J. Cannabis distributorion.

K. Cannabis manufacturering – Level 1.

Cannabis manufacturer – Packaging.

Cannabis manufacturer Level 1 – Shared Use.

L. Cannabis microbusiness.

M. Cannabis nursery.

N. Cannabis retailer.

O. Cannabis testing laboratory.

3 P. Industrial, manufacturing, or storage uses which may be objectionable by reason of production of smoke, dust, noise, radioactivity, vibration, bright light or other causes.

Q. Recreational uses, hotels, motels, mobile home parks, retail stores, offices, service establishments.

R. Resident manager/security personnel housing.

SECTION 6
Article 15 of Chapter 2 in Division 9 of the Ukiah City Code, pertaining to the Public Facilities (PF) Zoning District is hereby amended to read as follows (unchanged text is omitted and is shown by “* * *”):
§9170.2 PERMITTED USES
The following uses are permitted in the Public Facilities (PF) Zoning District subject to first securing a use permit:
***
Cannabis Cultivation – Processor.
***
Cannabis Manufacturer – Packaging
Cannabis Manufacturer – Shared Use
***
SECTION 7
Article 15.7 of Chapter 2 in Division 9 of the Ukiah City Code is amended to read as follows:

ARTICLE 15.7. STANDARDS FOR SPECIFIC LAND USES THAT ARE SUBJECT TO

DISCRETIONARY REVIEW
* * *
§9174.1 APPLICABILITY
The land uses and activities included in this Article shall comply with the provisions of the section applicable to the specific land use, in addition to all other applicable provisions of this article and the Ukiah City Code.

A. Where Allowed: The uses that are subject to the standards in sections 9174.2 through 9174.9 of this Code shall only be located in the zoning districts indicted in Articles 3 through 15 of this Chapter 2, Division 9 or as otherwise indicated in this Chapter.

B. Development Standards: The standards for specific land uses included in this Article are required and supplement those included in the Ukiah City Code. In the event of any conflict between the requirements of this Article and those included elsewhere in

4 the City Code, the requirements of this Article shall control. §9174.2 CANNABIS-RELATED BUSINESSES
A. Cannabis-Related Business Use Permit Application Requirements:

1. Submission: A complete Use Permit application submittal packet shall be submitted in accordance with Section 9262 of this Code, including a detailed written statement as to how the proposed Cannabis Related Business complies with this Section, and any other information or submissions required by this Code. All applications for Use Permits for Cannabis-Related Businesses shall be filed with the Planning Department, using forms provided by the City, and accompanied by the applicable filing fee and any other applicable fees or charges. It is the responsibility of the applicant to provide information required for approval of the permit. The application shall be made under penalty of perjury.

2. Effect of Other Permits or Licenses: The fact that an applicant possesses other types of State or City permits or licenses does not exempt the applicant from the requirement of obtaining a Use Permit.

3. Submittal Requirements: Any application for a Use Permit for a CannabisRelated Business shall include the following information:
a. Applicant(s) Name: The full name (including any current or prior aliases, or other legal names the applicant is or has been known by, including maiden names), present address, and telephone number of the applicant; b. Applicant(s) Mailing Address: The address to which notice of action on the application is to be mailed;
c. Previous Addresses: Previous addresses for the past five (5) years immediately prior to the present address of the applicant; dc. Verification of Age: Written proof that the applicant is at least twenty-one (21) years of age;
ed. Physical Description: Applicant’s height, weight, color of eyes and hair; fe. Photographs: Passport quality photographs for identification purposes; g. Employment History: All business, occupation, or employment of the applicant for the five (5) years immediately preceding the date of the application; hf. Tax History: The Cannabis Related Business tax history of the applicant, including whether such person, in previously operating in this or another city, county or state under license has had a business license revoked or suspended,

5 the reason therefor, and the business or activity or occupation in which the applicant engaged subsequent to such action of suspension or revocation; ig. Management Information: The name or names and addresses of the person or persons having the management or supervision of applicant’s business; jh. Criminal Background: A completed background investigation verifying whether the person or person having the management or supervision of applicant’s business has been convicted of a crime(s), the nature of such offense(s), and the sentence(s) received therefor;
ki. Employee Information: Number of employees, volunteers, and other persons who will work at the Cannabis-Related Business;
lj. Plan of Operations: A plan of operations describing how the Cannabis Related Business will operate consistent with the intent of State law, including obtaining all applicable State licenses, and the provisions of this Section, including but not limited to ensuring that the Cannabis-Related Business will not engage in cannabis-related commercial activities that violate California law or this chapter. mk. Written Response to Cannabis Related Business Standards: The applicant shall provide a comprehensive written response identifying how the Cannabis Related Business plan complies with each of the standards for review in this chapter, specifically the limitation on location and operating requirements in this Article;
nl. Security Plan: A detailed security plan and diagram outlining the proposed security arrangements for ensuring the safety of persons and to protect the premises from theft. The plan shall include installation of security cameras, a premises and panic alarm system monitored by a licensed operator, and a security assessment of the site conducted by a qualified professional; om. Floor Plan: A sketch or diagram showing the interior configuration of the premises, including a statement of the total floor area occupied by the Cannabis Related Business. The sketch or diagram need not be professionally prepared, but must be drawn to a designated scale or drawn with marked dimensions of the interior of the premises to an accuracy of plus or minus six inches (6”); pn. Site Plan: A sketch or diagram showing exterior configuration of the premises, including the outline of all existing and proposed structures, parking and landscape areas, and property boundaries. The sketch or diagram need not be professionally prepared, but must be drawn to a designated scale or drawn with marked dimensions to an accuracy of plus or minus six inches (6”); qo. Accessibility Evaluation: A written evaluation of accessibility to and within the building, and identification of any planned accessibility improvements;

6 rp. Neighborhood Context Map: An accurate straight-line drawing depicting the building and the portion thereof to be occupied by the Cannabis Related Business, and: (a) the property lines of any school within six hundred feet (600') of the property line of the Business for which a permit is requested, (b) the property lines of any Cannabis Related Business within two hundred fifty feet (250') of the primary entrance of the Business for which a permit is requested, and (c) the property lines of any youth-oriented facility or residential zone or use within two hundred fifty feet (250') of the primary entrance of the Business; sq. Lighting Plan: A lighting plan showing existing and proposed exterior premises and interior lighting levels that would be the minimum necessary to provide adequate security lighting for the use and comply with all City standards regarding lighting design and installation. All lighting shall be fully hooded and downcast, and shall not shine towards the night sky, adjacent property or any street;
tr. City Authorization: Written authorization for the City, its agents and employees to seek verification of the information contained within the application; us. Statement of Owner’s Consent: A statement in writing by the Owner that he or she certifies under penalty of perjury that the applicant has the consent of the Owner and landlord to operate a Cannabis Related Business at the location; vt. Applicant’s Certification: A statement in writing by the applicant that he or she certifies under penalty of perjury that all the information contained in the application is true and correct;
wu. Other Information: Such other information as deemed necessary by the Planning Department to demonstrate compliance with this Section including all City and State codes, including operating requirements established in this Section.

4. Effect of Incomplete Filing: Upon notification that an application submittal is incomplete, the applicant shall submit any additional documents or information required to complete the application within thirty (30) days of the date the applicant is notified in writing by the Planning Department that the application is incomplete. If the applicant fails to complete the application within said thirty (30) days, the application shall be deemed withdrawn and a new application submittal that complies with this Section shall be required in order to proceed with the application.

B. Operating Requirements for Cannabis Related Businesses: Cannabis Related Business operations shall be established and managed only in compliance with the following standards:

7 1. Criminal History: Any applicant, his or her agent or employees, volunteer workers, or any person exercising managerial authority of a Cannabis Related Business on behalf of the applicant shall not have been convicted of any of the felony offenses enumerated in Business and Professions Code Section 26057(b)(4), or of a felony or misdemeanor involving moral turpitude, or on probation for a drug offense, or engaged in misconduct related to the qualifications, functions or duties of a permittee.

Notwithstanding the above, an application shall not be denied solely on the basis that the applicant or any manager has been convicted of a felony, if the person convicted has obtained a certificate of rehabilitation (expungement of felony record) under California law or under a similar Federal statute or State law where the expungement was granted. In addition, notwithstanding the above, a prior conviction, where the sentence, including any term of probation, incarceration, or supervised release, is completed, for possession of, possession for sale, sale, manufacture, transportation, or cultivation of cannabis or cannabinoid preparations, is not considered related to the qualifications, functions, or duties of a permittee, and shall not be the sole ground for denial of an application.

2. Minors:
a. It is unlawful for any permittee, operator, or other person in charge of any Cannabis Related Business to employ any person who is not at least twenty-one (21) years of age.
b. The burden of proof is on the Cannabis Related Business personnel to establish compliance with this subsection B.2 by clear and convincing evidence.

3. Inventory and tracking: Cannabis Related Businesses shall at all times operate in a manner to prevent diversion of Cannabis and shall promptly comply with any track and trace program established by the State.

4. Multiple permits per site: Multiple Cannabis Related Businesses proposed on any one site or parcel shall be granted permit approval only if all of the proposed Cannabis Businesses and their co-location are authorized by both City and state law.

Operators of Cannabis Related Businesses issued Use Permits for multiple business types or State license types at the same physical address shall maintain clear separation between license types unless otherwise authorized by this Code and State law.

5. Operating Plans: An Operating Plan for a Cannabis Related Business must contain the following unless not applicable:
a. Storage: A Cannabis Related Business shall have suitable locked storage on premises, identified and approved as a part of the security plan, for after-hours storage of cannabis and cannabis products.

8 b. Odors Control: The Cannabis Related Business shall have an air treatment system that prevents odors generated from any storage and cultivation of cannabis on the Business property from being detected by any reasonable person of normal sensitivity outside the Cannabis Related Business premises. To achieve this, both the storage and cultivation areas shall be, at minimum, mechanically ventilated with a carbon filter or superior method. c. Security Plans: A Cannabis Related Business shall provide adequate security on the premises, as approved by the Chief of Police, including lighting and a premises and panic alarm system monitored by a licensed operator, to ensure the safety of persons and to protect the premises from theft. d. Security Cameras: Security surveillance cameras shall be installed to monitor the main entrance and exterior of the premises to discourage loitering, crime, illegal or nuisance activities. The security surveillance system shall comply with current State standards for digital video surveillance systems to be installed on the premises of licensed Cannabis businesses, currently codified in the Cal.

Code of Regulations, Title 16, Section 5044, and as may be amended. e. Security Video Retention: Security video shall be maintained for ninety (90) days. In the event of a crime on site or anywhere within range of the Cannabis Related Business’s security cameras, the Cannabis Related Business shall provide the Chief of Police or his or her designee with a useable digital copy of the security video upon request or at the earliest convenience. f. Alarm System: Professionally monitored premises and panic alarm system shall be installed and maintained in good working condition. g. Emergency access. Security measures shall be designed to ensure emergency access in compliance the California Fire Code and Ukiah Valley Fire Authority standards.
h. Emergency Contact: A Cannabis Related Business shall provide the Chief of Police with the name, e-mail address, phone number and facsimile number of an on-site community relations staff person to whom one can provide notice if there are operating problems associated with the Business. The Business shall make every good faith effort to encourage neighborhood residents to call this person to try to solve operating problems, if any, before any calls or complaints are made to the City.

6. Signage and Notices:
a. Address identification shall comply with illuminated address signs requirements.

9 b. Business identification signage shall be limited to that needed for identification only, consisting of a single window sign or wall sign that shall comply with Section 3227 of this Code and any other City Code provisions regulating signage.

76. Employee Records: Each owner or operator of a Cannabis Related Business shall maintain a current register of the names of all volunteers and employees currently working at or employed by the Cannabis Related Business, and shall disclose such registration for inspection by any City officer or official for purposes of determining compliance with the requirements of this Article.

87. Compliance with Other Requirements: The operator shall comply with all applicable provisions of local, State or Federal laws, regulations or orders, as well as any condition imposed on any permits issued pursuant to applicable laws, regulations or orders.

98. Confidentiality: The information provided for purposes of this section regarding the Cannabis Business security plans, security site plan, and employee background checks shall be maintained by the City as confidential information, and shall not be disclosed as public records unless pursuant to subpoena issued by a court of competent jurisdiction or otherwise compelled by court order or the California Public Records Act.
109. Display of Permit: Every Cannabis Related Business shall display at all times during business hours the Use Permit issued pursuant to the provisions of this chapter for such Business in a conspicuous place so that the same may be readily seen by all persons entering the Business.
1110. Inspections: During normal business hours, Cannabis Related Businesses permitted under this Chapter shall provide access for administrative inspections by City officials or officers or consultants hired by the City to verify compliance with this Article. Any Cannabis Related Business’s refusal to comply with this section shall be deemed a violation of this Article. 112. Notification of Theft, Loss, and Criminal Activity: Cannabis Related Businesses shall comply with the California Code of Regulations, Title 16, Section 5036, or as may be amended, by notifying the applicable State authorities and the Ukiah Police Department within 24 hours of discovery of any of the following situations:
a. A significant discrepancy in the Business’s inventory.

b. The Operator becomes aware of or has reason to suspect diversion, theft, loss, or any other criminal activity pertaining to the operations of the Business.

10 c. The Operator becomes aware of or has reason to suspect diversion, theft, loss, or any other criminal activity by an agent or employee of the Business pertaining to the operations of the Business.
d. The Operator becomes aware of or has reason to suspect the loss or unauthorized alteration of records related to cannabis goods, customers or clients, or the Business’s employees or agents.
e. The Operator becomes aware of or has reason to suspect any other breach of security.

The notification shall be in writing and include the date and time of occurrence of the theft, loss, or criminal activity and a description of the incident including, where applicable, the item(s) that were taken or lost.

C. Review and Revocation: Use permits issued for Cannabis Related Business shall be subject to annual review after the first year of operation according to the procedures set forth in subsection D of this section, and shall be subject to revocation according to the procedures set forth in subsection E of this section.

D. Annual Review of Use Permits for Cannabis Related Businesses:

1. Use permits for Cannabis Related Business will be subject to annual review after the first year of operation by the Zoning Administrator, including inspection of the business by the Zoning Administrator or his designee, to determine whether the business is being operated in accordance with any conditions of approval imposed on the use permit as issued by the Planning Commission or Zoning Administrator. The City Council may, from time to time by resolution in accordance with the procedures required by law, establish fees to be charged and collected for annual review pursuant to this subsection.

2. In the course of annual review and after annual inspection, the Zoning Administrator shall make findings of fact regarding the Cannabis Related Business operator’s adherence to the conditions of approval for the use permit. In addition, the Zoning Administrator will consider the following nonexclusive criteria in making findings of fact which may be grounds for revocation of a use permit for a Cannabis Related Business:
a. Whether the Cannabis Related Business operated pursuant to the use permit has generated an excessive number of calls for police service compared to similarly situated businesses of the same size as the Cannabis Related Business. b. Whether there have been excessive secondary criminal or public nuisance impacts in the surrounding area or neighborhood, including, but not limited to, disturbances of the peace, illegal drug activity, marijuana cannabis use in public, harassment of passersby, littering, loitering, illegal parking, loud noises, odors, or lewd conduct.

11 c. Whether the Cannabis Related Business operating pursuant to a use permit has a history of inadequate safeguards or procedures that show it is likely that it will not comply with any operating requirements and standards required in the conditions of approval.
d. Whether the Cannabis Related Business s has failed to pay fees, penalties, or taxes required by the conditions of approval of the use permit or by this code or State law, or has failed to comply with any requirements for the production of records or other reporting requirements of this code.
e. Whether the operator of the Cannabis Related Business or one or more of its officers, employees, partners, managers or members with management responsibilities (“managers”) has been convicted of a felony, or has engaged in misconduct that is substantially related to the qualifications, functions or duties of an operator of a Cannabis Related Businesses. A “conviction” within the meaning of this chapter means a plea or verdict of guilty, or a conviction following a plea of nolo contendere. Notwithstanding the above, an application shall not be denied solely on the basis that the applicant or any manager has been convicted of a felony, if the person convicted has obtained a certificate of rehabilitation (expungement of felony record) under California law or under a similar Federal statute or State law where the expungement was granted.
f. Whether the operator or managers of the Cannabis Related Business have previously or are currently engaged in unlawful, fraudulent, unfair, or deceptive business acts or practices.
g. Whether the cannabis-related business has been operated in compliance with applicable State law and provisions of this code generally.

3. If the Zoning Administrator determines that the Cannabis Related Business s is being operated in violation of any conditions of approval imposed on the use permit as issued by the Planning Commission or the Zoning Administrator, the use permit may be subject to revocation.

E. Revocation of Use Permits for Cannabis Related Businesses:

1. In addition to the reasons for revocation of an approved use permit set forth in subsection H2 of Section 9262 of this Code and subsection D2 of this Section, an approved use permit for a cannabis-related business may be revoked through the City’s revocation process, as set forth in subsection H2 of Section 9262, except that all references therein to the Planning Commission shall be deemed to refer to the Zoning Administrator, if the Cannabis Related Business is operated in a manner that violates the conditions of approval imposed by the use permit or the provisions of this code, or conflicts with State law. At the public hearing to be conducted by the Zoning Administrator as set forth in subsection H2 of this Section 9262, the Zoning

12 Administrator shall make findings regarding the alleged specific violations of this code or State law.

2. An appeal of the Zoning Administrator’s decision on revocation of a use permit for a Cannabis Related Business may be made to the Planning Commission for a final decision. Any such appeal must comply with the requirements of section 9266 of this code, except that all references therein to the City Council shall be deemed to refer to the Planning Commission.

3. When a final decision revoking a use permit for a Cannabis Related Business is made as provided in this section, the permittee shall become ineligible for a period of three (3) years thereafter to apply for a use permit for a Cannabis Related Business.

The ineligibility shall include any corporation or other business entity, including, but not limited to, a partnership or limited liability company, in which the permittee has any direct or indirect beneficial, financial or ownership interest.

F. Limitations on Locations of Cannabis Related Businesses

1. All Cannabis Related Businesses, as defined in Section 9278 of this code, operating subject to use permits under this chapter will operate indoors in a fully enclosed secure structure, as defined in Section 9254 of this Code, and shall not be allowed in the following areas:
a. Within six hundred feet (600') of a school, as defined in section 5702P of this code, with that distance measured as the horizontal distance in a straight line from the property line of the school to the closest property line of the lot on which the Cannabis Related Business is to be located without regard to intervening structures, pursuant to California Health and Safety Code section 11362.768; or b. Within two hundred fifty feet (250') of a youth-oriented facility other than a school, as defined in section 5702R of this code, with that distance measured by street frontage from the property line of the youth-oriented facility to the closest property line of the lot on which the Cannabis Related Business is to be located, and not radial distance; or
c. Abutting, on any side of the parcel upon which the Cannabis Related Business is located, a parcel occupied by a youth-oriented facility or a school; or d. Within any residential zoned parcel or primary land use, or any property with an underlying residential or mobile homes general plan land use designation; or e. On a parcel having a residential unit, or on a parcel directly abutting a residentially zoned property, unless there are intervening nonresidential uses between the Cannabis Related Business and the residential unit or the residentially zoned property that the decision-making entity charged with hearing

13 and making the decision on the use permit application or the appeal of that decision determines sufficient to provide an appropriate separation.

2. A Cannabis Retailer, as defined in Section 9278 of this code, shall not be allowed within two hundred fifty feet (250') of another Cannabis Retailer, with that distance measured by street frontage from the property line of the other Cannabis Retailer to the closest property line of the lot on which the Cannabis Retailer is to be located, and not radial distance.

32. A waiver of the provisions in subsections F1a through e and F2 of this section may be granted if the applicant demonstrates on plans and materials presented for review and the Planning Commission determines that a physical barrier or other condition exists which achieves the same purpose and intent as the distance separation requirements established herein, and that, as a result, the Zoning Administrator or the Planning Commission makes a finding of no adverse impact resulting from the proposed location of the cannabis-related business.

SECTION 8
A new Section 9174.3 shall be added to Article 15.7 of Chapter 2 in Division 9 of the Ukiah City Code and shall read as follows:
§9174.3 CANNABIS RETAILERS
A. Applicability: The standards and requirements in this Section apply specifically to Cannabis Retailers, as defined in Section 9278 of this Code, and other Cannabis Businesses with a retail component, and shall apply in addition to the requirements and standards for all Cannabis Businesses set forth in Section 9174.2 and elsewhere in this Code. In the event of any conflict between the requirements of this Section and those included elsewhere in the City Code, the requirements of this Section shall control.

B. Definitions.

For the purposes of this chapter, the following words and phrases shall have the following meaning:

1. “Adult-use” means a person the age of 21 or over with a valid state ID, who is qualified to purchase cannabis from an established cannabis business.

2. ”Delivery” means the commercial transfer of cannabis or cannabis products to a customer. “Delivery” also includes the use by a retailer of any technology platform.

3. “Identification card” shall have the same definition as in California Health and Safety Code section 11362.7, and as it may be amended.

14 4. ”Medical cannabis” or “medicinal cannabis” means cannabis that is intended to be used for medical cannabis purposes in accordance with State law.

5. ”On site” means an activity or accessory use that is related to the primary use – i.e., lawful, retail distribution of cannabis – and is located on the same legal parcel as the primary use.

6. ”Primary caregiver” shall have the same definition as set forth in California Health and Safety Code section 11362.7, and as it may be amended.

7. ”Qualified patient” shall have the same definition as set forth in California Health and Safety Code section 11362.7, and as it may be amended.

C. Operating Requirements

1. Minors: Persons under the age of eighteen (18) shall not be allowed on the premises of a Cannabis Retailer unless they are a qualified patient or a primary caregiver, they are in the presence of their parent or guardian, and the Cannabis Retailer in question dispenses cannabis for medical use. Adult Use Cannabis Retailers shall only allow on the premises a person who is 21 years of age or older and who possesses a valid government-issued photo identification card.

2. Cannabis Retailer Access:
a. The entrance into the Cannabis Retailer building shall be locked at all times with entry strictly controlled; e.g., a buzz-in electronic/mechanical entry system with a vestibule is highly encouraged. A viewer shall be installed in the door that allows maximum angle of view of the exterior entrance.
b. Cannabis Retailer personnel shall monitor site activity, control loitering and site access.
c. Only Cannabis Retailer staff, persons the age of twenty-one (21) and over, qualified patients over the age of eighteen (18) who are purchasing Medical cannabis, and persons with bona fide purposes for visiting the site shall be allowed on the premises.
d. Only a primary caregiver and qualified patient or persons the age of twentyone (21) and over shall be in the designated dispensing area with personnel. All other authorized visitors shall remain in the designated waiting area in the front entrance/lobby.
e. Restrooms shall remain locked and under the control of management.

3. Operations:

15 a. The Cannabis Retailer may sell cannabis or cannabis products to an individual only in an amount consistent with personal possession and use limits allowed by the State
b. A Cannabis Retailer shall not have a physician on site to evaluate patients and provide a recommendation for medical cannabis.

4. Hours of Operation: Hours of operation are limited to nine o’ clock (9:00) A.M. to nine o’ clock (9:00) P.M., seven (7) days a week.

5. Consumption Restrictions:
a. Cannabis shall not be consumed on the premises of the Cannabis Retailer.

The term “premises” includes the actual building, as well as any accessory structures, parking areas, or other surroundings within two hundred feet (200') of the Cannabis Retailer’s entrance.
b. Cannabis Retailer operations shall not result in illegal redistribution of cannabis obtained from the Cannabis Retailer, or use in any manner that violates local, State or City codes.
c. No person may consume cannabis, by smoking or vaporization, in any public places. Public places shall include, but are not limited to, City owned parks and/or City sponsored events where designated as nonsmoking areas by resolution of the City Council, streets, sidewalks, alleys, highways, public parking lots as defined in section 6000 of this Code and as amended, enclosed places and places of employment as defined in sections 4503 and 4505 of this Code and as amended, and any other property owned or leased by the City, or in which the City holds a right-of-way easement, and which is open to members of the general public, except while actively passing through on the way to another destination. Nothing in this Section is intended, nor shall it be construed, to be inconsistent with the California Indoor Clean Air Act of 1976, Health and Safety Code Section 118875 et seq. and as amended.

6. Retail Sales and Cultivation:
a. No cannabis shall be cultivated on the premises of the Cannabis Retailer, except in compliance with this Section and with Sections 6093 and 9254 of this code and applicable State laws and regulations.
b. Cannabis Retailers may keep on the Premises immature nursery stock cannabis plants, or clones, that are not intended to be raised to maturity by the Cannabis Retailer but instead sold to Adult Use patrons orqualified patients.

16 c. Up to one hundred fifty (150) square feet of the total square footage of the Cannabis Retailer may be utilized for display and sales of devices necessary for administering cannabis, including but not limited to rolling papers and related materials and devices, pipes, water pipes, and vaporizers. d. Retail sales of cannabis that violate California law or this Code are expressly prohibited.

7. Floor Plan: Cannabis Retailers or other Cannabis Businesses with a retail component shall have a lobby waiting area at the entrance to receive clients, and a separate and secure designated area for dispensing cannabis to qualified patients or designated caregivers or to eligible adult use patrons. The primary entrance shall be located and maintained clear of barriers, landscaping and similar obstructions so that it is clearly visible from public streets, sidewalks or site driveways.

8. Hours of Operation: Hours of operation are limited to nine o’ clock (9:00) A.M. to nine o’ clock (9:00) P.M., seven (7) days a week.

D. Site Management:

1. The operator of the establishment shall take all reasonable steps to discourage and correct objectionable conditions that constitute a nuisance in parking areas, sidewalks, alleys and areas surrounding the premises and adjacent properties during business hours if directly related to the patrons of the subject dispensary. a. "Reasonable steps" shall include calling the police in a timely manner; and requesting those engaging in objectionable activities to cease those activities, unless personal safety would be threatened in making the request. b. "Nuisance" includes, but is not limited to, disturbances of peace, open public consumption of cannabis or alcohol, excessive pedestrian or vehicular traffic, illegal drug activity, harassment of passersby, excessive littering, excessive loitering, illegal parking, excessive loud noises, especially late at night or early in the morning hours, lewd conduct or excessive police detentions and arrests.

2. The operator shall take all reasonable steps to reduce loitering in public areas, sidewalks, alleys and areas surrounding the premises and adjacent properties during business hours.

E. Alcoholic Beverages: No Cannabis Retailer shall hold or maintain a license from the State Division of Alcoholic Beverage Control for the sale of alcoholic beverages, or operate a business on the premises that sells alcoholic beverages. No alcoholic beverages shall be allowed or consumed on the premises.

17 F. Delivery: A Cannabis Retailer located in the City may deliver cannabis to qualified patients and caregivers and to persons eligible for adult-use at their residence in the City or to the same class of persons outside the City’s jurisdiction. Such permissible delivery of cannabis to qualified patients or adults at least 21 years of age within the City limits shall be limited to delivery by lawfully operated, permitted retailers. All other cannabis delivery is a prohibited activity in the City, except where the City is preempted by Federal or State law from enacting a prohibition on such activity.

SECTION 9
Table 3 in Section 9223.1 of Article 18, Chapter 2 in Division 9 of the Ukiah City Code is hereby amended by removing from the column heading “Use Categories and Specific Uses” the reference to a Dispensary Use Permit (DUP) and specifying that a Cannabis Retailer is an allowable use with a Major Use Permit (MAUP), rather than with a DUP, in the General Urban (GU), Urban Center (UC), and Downtown Core (DC) zoning district.

SECTION 10
Article 19 of Chapter 2 in Division 9 of the Ukiah City Code is hereby amended to read as follows:
§ 9254 MARIJUANA CANNABIS CULTIVATION
* * *
B. Cultivation of MarijuanaCannabis:
* * *

3. Indoor Commercial Cultivation Of MarijuanaCannabis: It is hereby declared to be unlawful and a public nuisance for any person owning, leasing, occupying, or having charge or possession of any parcel within the City of Ukiah to cause or allow such parcel to be used for the commercial cultivation of marijuanacannabis, unless (a) the person is operating a medical marijuana dispensaryCannabis Retailer pursuant to a valid dispensary use permit, within the C1, C2, CN, M, and PD (commercial) zoning districts and in the GU, UC, and DC downtown zoning districts, and the space devoted to on-site cultivation at the permitted dispensaryCannabis Retailer does not exceed twenty-five percent (25%) of the total floor area, but in no case more than five hundred (500) square feet; or (b) the person is operating a commercial Cannabis Cultivation business of any type in compliance with all requirements set forth in Sections 9261, 9262, and 9278 of this Code and with all applicable State laws and regulations including licensing requirements.

18 SECTION 11
Article 20 of Chapter 2 in Division 9 of the Ukiah City Code is hereby amended to read as follows (unchanged text is omitted and is shown by “* * *”):
§9261 DISCRETIONARY PLANNING PERMITS
* * *
D. ***
* * *

5. a. In all Zoning Districts in which they are a permitted use, the following Cannabis Related Businesses shall be considered major uses:

Cannabis Cultivation – Processor
Cannabis Cultivation – Specialty Cottage.

Cannabis Cultivation – Specialty Indoor.

Cannabis Cultivation – Specialty Mixed Light.

Cannabis Microbusiness.

Cannabis Nursery.

Cannabis Retailer.

Major Use Permits issued for Cannabis Related Businesses shall be subject to annual review after the first year of operation, and shall be subject to annual the review and revocation according to the procedures set forth in Section 92629174.2, subsections D and EK and L of this ArticleChapter.
b. In all Zoning Districts in which they are a permitted use, the following Cannabis Related Businesses shall be considered minor uses:

Cannabis Distribution
Cannabis Manufacturering – Level 1
Cannabis Manufacturer – Packaging
Cannabis Manufacturer – Shared Use
Minor Use Permits issued for Cannabis Related Businesses shall be subject to annual review after the first year of operation, and shall be subject to annual the review and revocation according to the procedures set forth in Section 9174.2262, subsections D and EK and L of this ArticleChapter.
* * *
SECTION 12

19 Article 21 of Chapter 2 in Division 9 of the Ukiah City Code is hereby amended to read as follows (unchanged text is omitted and is shown by “* * *”):
§9278 DEFINITIONS
***
B. ***
CANNABIS: Shall have the same definition as set forth for “Cannabis” in Business and Professions Code § 26001(e), as may be amended from time to time. All parts of the plant Cannabis sativa linnaeus, Cannabis indica, or Cannabis ruderalis, whether growing or not; the seeds thereof; the resin, whether crude or purified, extracted from any part of the plant; and every compound, manufacture, salt, derivative, mixture, or preparation of the plant, its seeds, or resin. “Cannabis” also means: (1) “marijuana” as defined by Health and Safety Code section 11018, and (2) the separated resin, whether crude or purified, obtained from marijuana. "Cannabis" does not include the mature stalks of the plant, fiber produced from the stalks, oil or cake made from the seeds of the plant, any other compound, manufacture, salt, derivative, mixture, or preparation of the mature stalks (except the resin extracted therefrom), fiber, oil, or cake, or the sterilized seed of the plant which is incapable of germination. For the purpose of this article, "cannabis" does not mean "industrial hemp" as defined by Food and Agricultural Code section 81000 or Health and Safety Code section 11018.5.

CANNABIS CULTIVATION: Shall have the same definition as set forth for “Cultivation” in Business and Professions Code § 26001(k), as may be amended from time to time.Any activity involving the planting, growing, harvesting, drying, curing, grading, or trimming of cannabis.

CANNABIS CULTIVATION – INDOOR: Shall have the same definition as set forth for “Indoor Cultivation” in Title 4, California Code of Regulations, Section 15000(cc), as may be amended from time to time. For purposes of this Code, indoor cultivation involves The cultivation of cannabis within a fully enclosed secure structure, as defined in section 9254 of this code.
***
CANNABIS CULTIVATION – MEDIUM INDOOR: A Cannabis Related Business operating under a State cultivator license, or a state cultivation license type subsequently established, and meeting the definition of “Medium Indoor” set forth in Title 4, California Code of Regulations, Section 16201, as may be amended from time to time.Indoor cultivation using exclusively artificial lighting between ten thousand one (10,001) and twenty-two thousand (22,000) square feet, inclusive, of total canopy size on one premises.

CANNABIS CULTIVATION – MEDIUM MIXED LIGHT: A Cannabis Related Business operating under a State cultivator license, or a state cultivation license type subsequently established, and meeting the definition of “Medium Mixed Light Tier 1 and

20 2” set forth in Title 4, California Code of Regulations, Section 16201, as may be amended from time to time.Indoor cultivation using any combination of natural and supplemental artificial lighting, between ten thousand one (10,001) and twenty-two thousand (22,000) square feet, inclusive, of total canopy size on one premises. ***
CANNABIS CULTIVATION – PROCESSOR: A Cannabis Related Business operating under a State cultivator license, or a state cultivation license type subsequently established, and meeting the definition of “Processor” set forth in Title 4, California Code of Regulations, Section 16201, as may be amended from time to time. * * *
CANNABIS CULTIVATION – SMALL INDOOR: A Cannabis Related Business operating under a State cultivator license, or a state cultivation license type subsequently established, and meeting the definition of “Small Indoor” set forth in Title 4, California Code of Regulations, Section 16201, as may be amended from time to time.Indoor cultivation using exclusively artificial lighting between five thousand one (5,001) and ten thousand (10,000) square feet, inclusive, of total canopy size on one premises.

CANNABIS CULTIVATION – SMALL MIXED LIGHT: A Cannabis Related Business operating under a State cultivator license, or a state cultivation license type subsequently established, and meeting the definition of “Small Mixed Light Tier 1 and 2” set forth in Title 4, California Code of Regulations, Section 16201, as may be amended from time to time.Indoor cultivation using any combination of natural and supplemental artificial lighting, inclusive, of total canopy size on one premises.

CANNABIS CULTIVATION – SPECIALTY COTTAGE: A Cannabis Related Business operating under a State cultivator license, or a state cultivation license type subsequently established, and meeting the definition of “Specialty Cottage” set forth in Title 4, California Code of Regulations, Section 16201, as may be amended from time to time.Indoor cultivation using any combination of natural and supplemental artificial lighting, of two thousand five hundred (2,500) square feet or less of total canopy size for mixed-light cultivation, or five hundred (500) square feet or less of total canopy size for indoor cultivation, on one premises.

CANNABIS CULTIVATION – SPECIALTY INDOOR: A Cannabis Related Business operating under a State cultivator license, or a state cultivation license type subsequently established, and meeting the definition of “Specialty Indoor” set forth in Title 4, California Code of Regulations, Section 16201, as may be amended from time to time.Indoor cultivation using exclusively artificial lighting of between two thousand five hundred one (2,501) and five thousand (5,000) square feet of total canopy size on one premises.

CANNABIS CULTIVATION – SPECIALTY MIXED LIGHT: A Cannabis Related Business operating under a State cultivator license, or a state cultivation license type subsequently established, and meeting the definition of “Specialty Mixed Light Tier 1 and 2” set forth in Title 4, California Code of Regulations, Section 16201, as may be

21 amended from time to time.Indoor cultivation using any combination of natural and supplemental artificial lighting, of between two thousand five hundred one (2,501) and five thousand (5,000) square feet of total canopy size on one premises.

CANNABIS DISTRIBUTION: The procurement, sale, and transport of cannabis and cannabis products between permitted and licensed cannabis businesses for the distribution of cannabis and cannabis products.Shall have the same meaning as the definition of “Distribution” set forth in Business and Professions Code § 26001(r), as may be amended from time to time.

CANNABIS DISTRIBUTOR: A Cannabis Related Business operating under a State Type 11 or 13 Distributor license, or a state distribution license type subsequently established, and meeting the definition of “Distributor” set forth in Business and Professions Code § 26001(s), as may be amended from time to time.

CANNABIS MANUFACTURING: The production, preparation, propagation, or compounding of cannabis or cannabis products either directly or indirectly or by extraction methods, or independently by means of chemical synthesis, or by a combination of extraction and chemical synthesis at a fixed location that packages or repackages cannabis or cannabis products or labels or relabels its container.Shall have the same definition as set forth for “Manufacture” in Title 4, California Code of Regulations, Section 15000(oo), as may be amended from time to time.

CANNABIS MANUFACTURING – LEVEL 1: A Cannabis Related Business operating under a State Type 7 manufacturer license for extractions using volatile solvents, or a state manufacturer license type subsequently established, and meeting the definition of a Type 7 license set forth in Title 4, California Code of Regulations, Section 17006, as may be amended from time to time.Cannabis manufacturing involving the manufacture of cannabis products using nonvolatile solvents, or no solvents.

CANNABIS MANUFACTURING – LEVEL 2: A Cannabis Related Business operating under a State Type 6 manufacturer license for extractions using mechanical methods or nonvolatile solvents, or a state manufacturer license type subsequently established, and meeting the definition of a Type 6 license set forth in Title 4, California Code of Regulations, Section 17006, as may be amended from time to time.Cannabis manufacturing involving the manufacture of cannabis products using volatile solvents.

CANNABIS MANUFACTURER – PACKAGING: A Cannabis Related Business operating under a State Type P license and meeting the definition of a Type P license set forth in Title 4, California Code of Regulations, Section 17006, as may be amended from time to time.

CANNABIS MANUFACTURER – SHARED USE: A Cannabis Related Business operating under a State Type S license and meeting the definition of a Type S license

22 set forth in Title 4, California Code of Regulations, Section 17006, as may be amended from time to time.
* * *
CANNABIS MICROBUSINESS: A Cannabis Related Business operating under a State Type 12 license for microbusinesses, or a state cannabis license type subsequently established, and meeting the definition of “microbusiness” set forth in Business and Professions Code § 2607026001(aj)(3)(A), as may be amended from time to time, which cultivates less than 10,000 square feet of cannabis and acts as a licensed distributor, Level 1 manufacturer, and retailer on the same Premises.. A Cannabis Microbusiness that also acts as a Cannabis Retailer must also comply with the provisions of Division 6, Chapter 8 of the Ukiah City Code, except that a Microbusiness with a retail component is not required to obtain a Dispensary Use Permit pursuant to Section 5703 of this CodeSection 9174.3 of this Code.

CANNABIS NURSERY: Cultivation of cannabis that produces only clones, immature plants, seeds, and other agricultural products used specifically for the propagation and cultivation of cannabis.A Cannabis Related Business operating under a State cultivation license for cannabis nurseries, or a state cultivation license type subsequently established, and meeting the definition of “Nursery” set forth in Business and Professions Code § 26001(ak), as may be amended from time to time.

CANNABIS PRODUCTS: Shall have the same definition as set forth for “Cannabis Products” in Business and Professions Code § 26001(h), as may be amended from time to time.Cannabis that has undergone a process whereby the plant material has been transformed into a concentrate, including but not limited to concentrated cannabis, or an edible or topical product containing cannabis or concentrated cannabis and other ingredients.

CANNABIS RELATED BUSINESS: An commercial enterprise engaged in the cultivation, possession, manufacture, processing, storing, laboratory testing, labeling, distribution, or distribution, of cannabis or a cannabis product, commercial cannabis activity, as defined in Business and Professions Code § 26001(j), as may be amended from time to time.including a Microbusiness, except as set forth in Business and Professions Code Section 26033 related to qualifying patients and primary caregivers, Division 6, Chapter 8 of the Ukiah City Code pertaining to regulation of marijuana dispensaries and issuance and renewal of Dispensary Use Permits, and Section 9254 of this Chapter pertaining to cultivation of cannabis marijuana for personal use. For purposes of this Article, this definition of a Cannabis Related Business excludes businesses engaged in the retail sale and delivery of Cannabis, Cannabis products, or Cannabis Products to patients or customers, which are regulated under Division 6, Chapter 8 of this Code. All Cannabis Related Businesses operating within the City must possess a valid State license appropriate for the type of business operated.

CANNABIS RETAILER: A commercial enterprise engaged in the retail sale and delivery of cannabis or cannabis products to customers. A retailer shall have a licensed

23 premises which is a physical location from which commercial cannabis activities are conducted. A retailer’s premises may be closed to the public. A retailer may conduct sales exclusively by delivery. All Cannabis Retail operations in the City of Ukiah are regulated pursuant to Division 6, Chapter 8 of the Ukiah City Code and must comply with all provisions of this Division.the general regulations for Cannabis Related Businesses in Section 9174.2 of this Code and the regulations specific to Retailers in Section 9174.3.

CANNABIS TESTING LABORATORY: Shall have the same definition as set forth for “Testing Laboratory” in Business and Professions Code § 26001(av), as may be amended from time to time.A laboratory, facility, or entity that offers or performs tests of cannabis or cannabis products.
***
SCHOOL: Shall mean an institution of learning for minors, whether public or private, offering a regular course of instruction required by the California Education Code. This definition includes an elementary school, middle or junior high school, senior high school, or any special institution of education, but it does not include a vocational or professional institution of higher education, including any other college or university. ***
YOUTH-ORIENTED FACILITY: Shall mean a public park, as shown on the official zoning map for the City; church; museum; library; or licensed daycare facility.

SECTION 13

1. SEVERABILITY.

If any section, subsection, subdivision, paragraph, sentence, clause or phrase of this Ordinance, or its application to any person or circumstance, is for any reason held to be invalid or unenforceable, such invalidity or unenforceability shall not affect the validity or enforceability of the remaining sections, subsections, subdivisions, paragraphs, sentences, clauses or phrases of this Ordinance, or its application to any other person or circumstance. The City Council of the City of Ukiah hereby declares that it would have adopted each section, subsection, subdivision, paragraph, sentence, clause or phrase hereof, irrespective of the fact that any one or more other sections, subsections, subdivisions, paragraphs, sentences, clauses or phrases hereof be declared invalid or unenforceable.

2. EFFECTIVE DATE.

This Ordinance shall be published as required by law in a newspaper of general circulation in the City of Ukiah, and shall become effective thirty (30) days after its adoption.

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

24 AYES:

NOES:

ABSENT:

ABSTAIN:

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

AYES:

NOES:

ABSENT:

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

1 ORDINANCE NO.

ORDINANCE OF THE CITY COUNCIL OF THE CITY OF UKIAH AMENDING

VARIOUS SECTIONS OF THE UKIAH CITY CODE TO AMEND THE USE PERMIT

APPLICATION PROCESS AND OPERATIONAL STANDARDS FOR CANNABIS RELATED BUSINESSES.

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

SECTION 1
Chapter 8 in Division 6 of the Ukiah City Code is hereby repealed in its entirety.

SECTION 2
Article 6 of Chapter 2 in Division 9 of the Ukiah City Code, pertaining to the Neighborhood Commercial (C-N) Zoning District is hereby amended to read as follows (unchanged text is omitted and is shown by “* * *”):
§9062 USES PERMITTED WITH SECURING OF A USE PERMIT
The following uses may be permitted in neighborhood commercial (C-N) districts, subject to first securing a use permit pursuant to provisions contained in section 9262 of this chapter:
***
Cannabis Retailer
SECTION 3
Article 7 of Chapter 2 in Division 9 of the Ukiah City Code, pertaining to the Community Commercial (C-1) Zoning District is hereby amended to read as follows (unchanged text is omitted and is shown by “* * *”):
§9082 PERMITTED USES
The following uses require approval of a use permit pursuant to the provisions contained in section 9262 of this chapter:
***
Cannabis Cultivation - Processor
Cannabis Manufacturer – Packaging
Cannabis Manufacturer – Shared Use
* * *
SECTION 4
Attachment 2

2 Article 8 of Chapter 2 in Division 9 of the Ukiah City Code, pertaining to the Heavy Commercial (C-2) Zoning District is hereby amended to read as follows (unchanged text is omitted and is shown by “* * *”):
§9097 PERMITTED USES
The following uses require approval of a use permit pursuant to the provisions contained in section 9262 of this code:
***
Cannabis Cultivation – Processor
***
Cannabis Manufacturer – Packaging
Cannabis Manufacturer – Shared Use
***
SECTION 5
Article 9 of Chapter 2 in Division 9 of the Ukiah City Code, pertaining to the Manufacturing (M) Zoning District is hereby amended to read as follows (unchanged text is omitted and is shown by “* * *”):
§9112 USES PERMITTED SUBJECT TO FIRST SECURING A USE PERMIT The following uses may be permitted in Manufacturing (M) Districts subject to first securing a use permit, as provided in this chapter, in each case:

Cannabis cultivation – Large indoor.

Cannabis cultivation – Large mixed light.

Cannabis cultivation – Medium indoor.

Cannabis cultivation – Medium mixed light.

Cannabis cultivation – Processor.

Cannabis cultivation – Small indoor.

Cannabis cultivation – Small mixed light.

Cannabis cultivation – Specialty cottage.

Cannabis cultivation – Specialty indoor.

Cannabis cultivation – Specialty mixed light.

Cannabis distributor.

Cannabis manufacturer – Level 1.

Cannabis manufacturer – Packaging.

Cannabis manufacturer Level 1 – Shared Use.

Cannabis microbusiness.

Cannabis nursery.

Cannabis retailer.

Cannabis testing laboratory.

3 Industrial, manufacturing, or storage uses which may be objectionable by reason of production of smoke, dust, noise, radioactivity, vibration, bright light or other causes.

Recreational uses, hotels, motels, mobile home parks, retail stores, offices, service establishments.

Resident manager/security personnel housing.

SECTION 6
Article 15 of Chapter 2 in Division 9 of the Ukiah City Code, pertaining to the Public Facilities (PF) Zoning District is hereby amended to read as follows (unchanged text is omitted and is shown by “* * *”):
§9170.2 PERMITTED USES
The following uses are permitted in the Public Facilities (PF) Zoning District subject to first securing a use permit:
***
Cannabis Cultivation – Processor.
***
Cannabis Manufacturer – Packaging
Cannabis Manufacturer – Shared Use
***
SECTION 7
Article 15.7 of Chapter 2 in Division 9 of the Ukiah City Code is amended to read as follows:

ARTICLE 15.7. STANDARDS FOR SPECIFIC LAND USES THAT ARE SUBJECT TO

DISCRETIONARY REVIEW
* * *
§9174.1 APPLICABILITY
The land uses and activities included in this Article shall comply with the provisions of the section applicable to the specific land use, in addition to all other applicable provisions of this article and the Ukiah City Code.

A. Where Allowed: The uses that are subject to the standards in sections 9174.2 through 9174.9 of this Code shall only be located in the zoning districts indicted in Articles 3 through 15 of this Chapter 2, Division 9 or as otherwise indicated in this Chapter.

B. Development Standards: The standards for specific land uses included in this Article are required and supplement those included in the Ukiah City Code. In the event of any conflict between the requirements of this Article and those included elsewhere in the City Code, the requirements of this Article shall control.

4 §9174.2 CANNABIS-RELATED BUSINESSES
A. Cannabis-Related Business Use Permit Application Requirements:

1. Submission: A complete Use Permit application submittal packet shall be submitted in accordance with Section 9262 of this Code, including a detailed written statement as to how the proposed Cannabis Related Business complies with this Section, and any other information or submissions required by this Code. All applications for Use Permits for Cannabis-Related Businesses shall be filed with the Planning Department, using forms provided by the City, and accompanied by the applicable filing fee and any other applicable fees or charges. It is the responsibility of the applicant to provide information required for approval of the permit. The application shall be made under penalty of perjury.

2. Effect of Other Permits or Licenses: The fact that an applicant possesses other types of State or City permits or licenses does not exempt the applicant from the requirement of obtaining a Use Permit.

3. Submittal Requirements: Any application for a Use Permit for a CannabisRelated Business shall include the following information:
a. Applicant(s) Name: The full name (including any current or prior aliases, or other legal names the applicant is or has been known by, including maiden names), present address, and telephone number of the applicant; b. Applicant(s) Mailing Address: The address to which notice of action on the application is to be mailed;
c. Verification of Age: Written proof that the applicant is at least twenty-one (21) years of age;
d. Physical Description: Applicant’s height, weight, color of eyes and hair; e. Photographs: Passport quality photographs for identification purposes; f. Tax History: The Cannabis Related Business tax history of the applicant, including whether such person, in previously operating in this or another city, county or state under license has had a business license revoked or suspended, the reason therefor, and the business or activity or occupation in which the applicant engaged subsequent to such action of suspension or revocation; g. Management Information: The name or names and addresses of the person or persons having the management or supervision of applicant’s business;

5 h. Criminal Background: A completed background investigation verifying whether the person or person having the management or supervision of applicant’s business has been convicted of a crime(s), the nature of such offense(s), and the sentence(s) received therefor;
i. Employee Information: Number of employees, volunteers, and other persons who will work at the Cannabis-Related Business;
j. Plan of Operations: A plan of operations describing how the Cannabis Related Business will operate consistent with the intent of State law, including obtaining all applicable State licenses, and the provisions of this Section, including but not limited to ensuring that the Cannabis-Related Business will not engage in cannabis-related commercial activities that violate California law or this chapter. k. Written Response to Cannabis Related Business Standards: The applicant shall provide a comprehensive written response identifying how the Cannabis Related Business plan complies with each of the standards for review in this chapter, specifically the limitation on location and operating requirements in this Article;
l. Security Plan: A detailed security plan and diagram outlining the proposed security arrangements for ensuring the safety of persons and to protect the premises from theft. The plan shall include installation of security cameras, a premises and panic alarm system monitored by a licensed operator, and a security assessment of the site conducted by a qualified professional; m. Floor Plan: A sketch or diagram showing the interior configuration of the premises, including a statement of the total floor area occupied by the Cannabis Related Business. The sketch or diagram need not be professionally prepared, but must be drawn to a designated scale or drawn with marked dimensions of the interior of the premises to an accuracy of plus or minus six inches (6”); n. Site Plan: A sketch or diagram showing exterior configuration of the premises, including the outline of all existing and proposed structures, parking and landscape areas, and property boundaries. The sketch or diagram need not be professionally prepared, but must be drawn to a designated scale or drawn with marked dimensions to an accuracy of plus or minus six inches (6”); o. Accessibility Evaluation: A written evaluation of accessibility to and within the building, and identification of any planned accessibility improvements; p. Neighborhood Context Map: An accurate straight-line drawing depicting the building and the portion thereof to be occupied by the Cannabis Related Business, and: (a) the property lines of any school within six hundred feet (600') of the property line of the Business for which a permit is requested, (b) the

6 property lines of any Cannabis Related Business within two hundred fifty feet (250') of the primary entrance of the Business for which a permit is requested, and (c) the property lines of any youth-oriented facility or residential zone or use within two hundred fifty feet (250') of the primary entrance of the Business; q. Lighting Plan: A lighting plan showing existing and proposed exterior premises and interior lighting levels that would be the minimum necessary to provide adequate security lighting for the use and comply with all City standards regarding lighting design and installation. All lighting shall be fully hooded and downcast, and shall not shine towards the night sky, adjacent property or any street;
r. City Authorization: Written authorization for the City, its agents and employees to seek verification of the information contained within the application; s. Statement of Owner’s Consent: A statement in writing by the Owner that he or she certifies under penalty of perjury that the applicant has the consent of the Owner and landlord to operate a Cannabis Related Business at the location; t. Applicant’s Certification: A statement in writing by the applicant that he or she certifies under penalty of perjury that all the information contained in the application is true and correct;
u. Other Information: Such other information as deemed necessary by the Planning Department to demonstrate compliance with this Section including all City and State codes, including operating requirements established in this Section.

4. Effect of Incomplete Filing: Upon notification that an application submittal is incomplete, the applicant shall submit any additional documents or information required to complete the application within thirty (30) days of the date the applicant is notified in writing by the Planning Department that the application is incomplete. If the applicant fails to complete the application within said thirty (30) days, the application shall be deemed withdrawn and a new application submittal that complies with this Section shall be required in order to proceed with the application.

B. Operating Requirements for Cannabis Related Businesses: Cannabis Related Business operations shall be established and managed only in compliance with the following standards:

1. Criminal History: Any applicant, his or her agent or employees, volunteer workers, or any person exercising managerial authority of a Cannabis Related Business on behalf of the applicant shall not have been convicted of any of the felony offenses enumerated in Business and Professions Code Section 26057(b)(4), or of a felony or misdemeanor involving moral turpitude, or on probation for a drug offense, or engaged in misconduct related to the qualifications, functions or duties of a permittee.

7 Notwithstanding the above, an application shall not be denied solely on the basis that the applicant or any manager has been convicted of a felony, if the person convicted has obtained a certificate of rehabilitation (expungement of felony record) under California law or under a similar Federal statute or State law where the expungement was granted. In addition, notwithstanding the above, a prior conviction, where the sentence, including any term of probation, incarceration, or supervised release, is completed, for possession of, possession for sale, sale, manufacture, transportation, or cultivation of cannabis or cannabinoid preparations, is not considered related to the qualifications, functions, or duties of a permittee, and shall not be the sole ground for denial of an application.

2. Minors:
a. It is unlawful for any permittee, operator, or other person in charge of any Cannabis Related Business to employ any person who is not at least twenty-one (21) years of age.
b. The burden of proof is on the Cannabis Related Business personnel to establish compliance with this subsection B.2 by clear and convincing evidence.

3. Inventory and tracking: Cannabis Related Businesses shall at all times operate in a manner to prevent diversion of Cannabis and shall promptly comply with any track and trace program established by the State.

4. Multiple permits per site: Multiple Cannabis Related Businesses proposed on any one site or parcel shall be granted permit approval only if all of the proposed Cannabis Businesses and their co-location are authorized by both City and state law.

Operators of Cannabis Related Businesses issued Use Permits for multiple business types or State license types at the same physical address shall maintain clear separation between license types unless otherwise authorized by this Code and State law.

5. Operating Plans: An Operating Plan for a Cannabis Related Business must contain the following unless not applicable:
a. Storage: A Cannabis Related Business shall have suitable locked storage on premises, identified and approved as a part of the security plan, for after-hours storage of cannabis and cannabis products.
b. Odors Control: The Cannabis Related Business shall have an air treatment system that prevents odors generated from any storage and cultivation of cannabis on the Business property from being detected by any reasonable person of normal sensitivity outside the Cannabis Related Business premises. To achieve this, both the storage and cultivation areas shall be, at minimum, mechanically ventilated with a carbon filter or superior method.

8 c. Security Plans: A Cannabis Related Business shall provide adequate security on the premises, as approved by the Chief of Police, including lighting and a premises and panic alarm system monitored by a licensed operator, to ensure the safety of persons and to protect the premises from theft. d. Security Cameras: Security surveillance cameras shall be installed to monitor the main entrance and exterior of the premises to discourage loitering, crime, illegal or nuisance activities. The security surveillance system shall comply with current State standards for digital video surveillance systems to be installed on the premises of licensed Cannabis businesses, currently codified in the Cal.

Code of Regulations, Title 16, Section 5044, and as may be amended. e. Security Video Retention: Security video shall be maintained for ninety (90) days. In the event of a crime on site or anywhere within range of the Cannabis Related Business’s security cameras, the Cannabis Related Business shall provide the Chief of Police or his or her designee with a useable digital copy of the security video upon request or at the earliest convenience. f. Alarm System: Professionally monitored premises and panic alarm system shall be installed and maintained in good working condition. g. Emergency access. Security measures shall be designed to ensure emergency access in compliance the California Fire Code and Ukiah Valley Fire Authority standards.
h. Emergency Contact: A Cannabis Related Business shall provide the Chief of Police with the name, e-mail address, phone number and facsimile number of an on-site community relations staff person to whom one can provide notice if there are operating problems associated with the Business. The Business shall make every good faith effort to encourage neighborhood residents to call this person to try to solve operating problems, if any, before any calls or complaints are made to the City.

6. Employee Records: Each owner or operator of a Cannabis Related Business shall maintain a current register of the names of all volunteers and employees currently working at or employed by the Cannabis Related Business, and shall disclose such registration for inspection by any City officer or official for purposes of determining compliance with the requirements of this Article.

7. Compliance with Other Requirements: The operator shall comply with all applicable provisions of local, State or Federal laws, regulations or orders, as well as any condition imposed on any permits issued pursuant to applicable laws, regulations or orders.

9 8. Confidentiality: The information provided for purposes of this section regarding the Cannabis Business security plans, security site plan, and employee background checks shall be maintained by the City as confidential information, and shall not be disclosed as public records unless pursuant to subpoena issued by a court of competent jurisdiction or otherwise compelled by court order or the California Public Records Act.

9. Display of Permit: Every Cannabis Related Business shall display at all times during business hours the Use Permit issued pursuant to the provisions of this chapter for such Business in a conspicuous place so that the same may be readily seen by all persons entering the Business.

10. Inspections: During normal business hours, Cannabis Related Businesses permitted under this Chapter shall provide access for administrative inspections by City officials or officers or consultants hired by the City to verify compliance with this Article.

Any Cannabis Related Business’s refusal to comply with this section shall be deemed a violation of this Article.

11. Notification of Theft, Loss, and Criminal Activity: Cannabis Related Businesses shall comply with the California Code of Regulations, Title 16, Section 5036, or as may be amended, by notifying the applicable State authorities and the Ukiah Police Department within 24 hours of discovery of any of the following situations:
a. A significant discrepancy in the Business’s inventory.

b. The Operator becomes aware of or has reason to suspect diversion, theft, loss, or any other criminal activity pertaining to the operations of the Business. c. The Operator becomes aware of or has reason to suspect diversion, theft, loss, or any other criminal activity by an agent or employee of the Business pertaining to the operations of the Business.
d. The Operator becomes aware of or has reason to suspect the loss or unauthorized alteration of records related to cannabis goods, customers or clients, or the Business’s employees or agents.
e. The Operator becomes aware of or has reason to suspect any other breach of security.

The notification shall be in writing and include the date and time of occurrence of the theft, loss, or criminal activity and a description of the incident including, where applicable, the item(s) that were taken or lost.

C. Review and Revocation: Use permits issued for Cannabis Related Business shall be subject to review after the first year of operation according to the procedures set forth in subsection D of this section, and shall be subject to revocation according to the

10 procedures set forth in subsection E of this section.

D. Review of Use Permits for Cannabis Related Businesses:

1. Use permits for Cannabis Related Business will be subject to review after the first year of operation by the Zoning Administrator, including inspection of the business by the Zoning Administrator or his designee, to determine whether the business is being operated in accordance with any conditions of approval imposed on the use permit as issued by the Planning Commission or Zoning Administrator. The City Council may, from time to time by resolution in accordance with the procedures required by law, establish fees to be charged and collected for review pursuant to this subsection.

2. In the course of review and after inspection, the Zoning Administrator shall make findings of fact regarding the Cannabis Related Business operator’s adherence to the conditions of approval for the use permit. In addition, the Zoning Administrator will consider the following nonexclusive criteria in making findings of fact which may be grounds for revocation of a use permit for a Cannabis Related Business:
a. Whether the Cannabis Related Business operated pursuant to the use permit has generated an excessive number of calls for police service compared to similarly situated businesses of the same size as the Cannabis Related Business. b. Whether there have been excessive secondary criminal or public nuisance impacts in the surrounding area or neighborhood, including, but not limited to, disturbances of the peace, illegal drug activity, cannabis use in public, harassment of passersby, littering, loitering, illegal parking, loud noises, odors, or lewd conduct. c. Whether the Cannabis Related Business operating pursuant to a use permit has a history of inadequate safeguards or procedures that show it is likely that it will not comply with any operating requirements and standards required in the conditions of approval.
d. Whether the Cannabis Related Business has failed to pay fees, penalties, or taxes required by the conditions of approval of the use permit or by this code or State law, or has failed to comply with any requirements for the production of records or other reporting requirements of this code.
e. Whether the operator of the Cannabis Related Business or one or more of its officers, employees, partners, managers or members with management responsibilities (“managers”) has been convicted of a felony, or has engaged in misconduct that is substantially related to the qualifications, functions or duties of an operator of a Cannabis Related Businesses. A “conviction” within the meaning of this chapter means a plea or verdict of guilty, or a conviction following a plea of nolo contendere. Notwithstanding the above, an application shall not be denied solely on the basis that the applicant or any manager has been convicted of a felony, if the person convicted has obtained a certificate of rehabilitation (expungement of felony

11 record) under California law or under a similar Federal statute or State law where the expungement was granted.
f. Whether the operator or managers of the Cannabis Related Business have previously or are currently engaged in unlawful, fraudulent, unfair, or deceptive business acts or practices.
g. Whether the cannabis-related business has been operated in compliance with applicable State law and provisions of this code generally.

3. If the Zoning Administrator determines that the Cannabis Related Business is being operated in violation of any conditions of approval imposed on the use permit as issued by the Planning Commission or the Zoning Administrator, the use permit may be subject to revocation.

E. Revocation of Use Permits for Cannabis Related Businesses:

1. In addition to the reasons for revocation of an approved use permit set forth in subsection H2 of Section 9262 of this Code and subsection D2 of this Section, an approved use permit for a cannabis-related business may be revoked through the City’s revocation process, as set forth in subsection H2 of Section 9262, except that all references therein to the Planning Commission shall be deemed to refer to the Zoning Administrator, if the Cannabis Related Business is operated in a manner that violates the conditions of approval imposed by the use permit or the provisions of this code, or conflicts with State law. At the public hearing to be conducted by the Zoning Administrator as set forth in subsection H2 of this Section 9262, the Zoning Administrator shall make findings regarding the alleged specific violations of this code or State law.

2. An appeal of the Zoning Administrator’s decision on revocation of a use permit for a Cannabis Related Business may be made to the Planning Commission for a final decision. Any such appeal must comply with the requirements of section 9266 of this code, except that all references therein to the City Council shall be deemed to refer to the Planning Commission.

3. When a final decision revoking a use permit for a Cannabis Related Business is made as provided in this section, the permittee shall become ineligible for a period of three (3) years thereafter to apply for a use permit for a Cannabis Related Business.

The ineligibility shall include any corporation or other business entity, including, but not limited to, a partnership or limited liability company, in which the permittee has any direct or indirect beneficial, financial or ownership interest.

F. Limitations on Locations of Cannabis Related Businesses

1. All Cannabis Related Businesses, as defined in Section 9278 of this code, operating subject to use permits under this chapter will operate indoors in a fully

12 enclosed secure structure, as defined in Section 9254 of this Code, and shall not be allowed in the following areas:
a. Within six hundred feet (600') of a school, as defined in section 5702P of this code, with that distance measured as the horizontal distance in a straight line from the property line of the school to the closest property line of the lot on which the Cannabis Related Business is to be located without regard to intervening structures, pursuant to California Health and Safety Code section 11362.768; or b. Within two hundred fifty feet (250') of a youth-oriented facility other than a school, as defined in section 5702R of this code, with that distance measured by street frontage from the property line of the youth-oriented facility to the closest property line of the lot on which the Cannabis Related Business is to be located, and not radial distance; or
c. Abutting, on any side of the parcel upon which the Cannabis Related Business is located, a parcel occupied by a youth-oriented facility or a school; or d. Within any residential zoned parcel or primary land use, or any property with an underlying residential or mobile homes general plan land use designation; or e. On a parcel having a residential unit, or on a parcel directly abutting a residentially zoned property, unless there are intervening nonresidential uses between the Cannabis Related Business and the residential unit or the residentially zoned property that the decision-making entity charged with hearing and making the decision on the use permit application or the appeal of that decision determines sufficient to provide an appropriate separation.

2. A Cannabis Retailer, as defined in Section 9278 of this code, shall not be allowed within two hundred fifty feet (250') of another Cannabis Retailer, with that distance measured by street frontage from the property line of the other Cannabis Retailer to the closest property line of the lot on which the Cannabis Retailer is to be located, and not radial distance.

3. A waiver of the provisions in subsections F1a through e and F2 of this section may be granted if the applicant demonstrates on plans and materials presented for review and the Planning Commission determines that a physical barrier or other condition exists which achieves the same purpose and intent as the distance separation requirements established herein, and that, as a result, the Zoning Administrator or the Planning Commission makes a finding of no adverse impact resulting from the proposed location of the cannabis-related business.

SECTION 8
A new Section 9174.3 shall be added to Article 15.7 of Chapter 2 in Division 9 of the Ukiah City Code and shall read as follows:

13 §9174.3 CANNABIS RETAILERS
A. Applicability: The standards and requirements in this Section apply specifically to Cannabis Retailers, as defined in Section 9278 of this Code, and other Cannabis Businesses with a retail component, and shall apply in addition to the requirements and standards for all Cannabis Businesses set forth in Section 9174.2 and elsewhere in this Code. In the event of any conflict between the requirements of this Section and those included elsewhere in the City Code, the requirements of this Section shall control.

B. Definitions.

For the purposes of this chapter, the following words and phrases shall have the following meaning:

1. “Adult-use” means a person the age of 21 or over with a valid state ID, who is qualified to purchase cannabis from an established cannabis business.

2. ”Delivery” means the commercial transfer of cannabis or cannabis products to a customer. “Delivery” also includes the use by a retailer of any technology platform.

3. “Identification card” shall have the same definition as in California Health and Safety Code section 11362.7, and as it may be amended.

4. ”Medical cannabis” or “medicinal cannabis” means cannabis that is intended to be used for medical cannabis purposes in accordance with State law.

5. ”On site” means an activity or accessory use that is related to the primary use – i.e., lawful, retail distribution of cannabis – and is located on the same legal parcel as the primary use.

6. ”Primary caregiver” shall have the same definition as set forth in California Health and Safety Code section 11362.7, and as it may be amended.

7. ”Qualified patient” shall have the same definition as set forth in California Health and Safety Code section 11362.7, and as it may be amended.

C. Operating Requirements

1. Minors: Persons under the age of eighteen (18) shall not be allowed on the premises of a Cannabis Retailer unless they are a qualified patient or a primary caregiver, they are in the presence of their parent or guardian, and the Cannabis Retailer in question dispenses cannabis for medical use. Adult Use Cannabis Retailers shall only allow on the premises a person who is 21 years of age or older and who possesses a valid government-issued photo identification card.

14 2. Cannabis Retailer Access:
a. The entrance into the Cannabis Retailer building shall be locked at all times with entry strictly controlled; e.g., a buzz-in electronic/mechanical entry system with a vestibule is highly encouraged. A viewer shall be installed in the door that allows maximum angle of view of the exterior entrance.
b. Cannabis Retailer personnel shall monitor site activity, control loitering and site access.
c. Only Cannabis Retailer staff, persons the age of twenty-one (21) and over, qualified patients over the age of eighteen (18) who are purchasing Medical cannabis, and persons with bona fide purposes for visiting the site shall be allowed on the premises.
d. Only a primary caregiver and qualified patient or persons the age of twentyone (21) and over shall be in the designated dispensing area with personnel. All other authorized visitors shall remain in the designated waiting area in the front entrance/lobby.
e. Restrooms shall remain locked and under the control of management.

3. Operations:
a. The Cannabis Retailer may sell cannabis or cannabis products to an individual only in an amount consistent with personal possession and use limits allowed by the State
b. A Cannabis Retailer shall not have a physician on site to evaluate patients and provide a recommendation for medical cannabis.

4. Hours of Operation: Hours of operation are limited to nine o’ clock (9:00) A.M. to nine o’ clock (9:00) P.M., seven (7) days a week.

5. Consumption Restrictions:
a. Cannabis shall not be consumed on the premises of the Cannabis Retailer.

The term “premises” includes the actual building, as well as any accessory structures, parking areas, or other surroundings within two hundred feet (200') of the Cannabis Retailer’s entrance.
b. Cannabis Retailer operations shall not result in illegal redistribution of cannabis obtained from the Cannabis Retailer, or use in any manner that violates local, State or City codes.

15 c. No person may consume cannabis, by smoking or vaporization, in any public places. Public places shall include, but are not limited to, City owned parks and/or City sponsored events where designated as nonsmoking areas by resolution of the City Council, streets, sidewalks, alleys, highways, public parking lots as defined in section 6000 of this Code and as amended, enclosed places and places of employment as defined in sections 4503 and 4505 of this Code and as amended, and any other property owned or leased by the City, or in which the City holds a right-of-way easement, and which is open to members of the general public, except while actively passing through on the way to another destination. Nothing in this Section is intended, nor shall it be construed, to be inconsistent with the California Indoor Clean Air Act of 1976, Health and Safety Code Section 118875 et seq. and as amended.

6. Retail Sales and Cultivation:
a. No cannabis shall be cultivated on the premises of the Cannabis Retailer, except in compliance with this Section and with Sections 6093 and 9254 of this code and applicable State laws and regulations.
b. Cannabis Retailers may keep on the Premises immature nursery stock cannabis plants, or clones, that are not intended to be raised to maturity by the Cannabis Retailer but instead sold to Adult Use patrons orqualified patients. c. Up to one hundred fifty (150) square feet of the total square footage of the Cannabis Retailer may be utilized for display and sales of devices necessary for administering cannabis, including but not limited to rolling papers and related materials and devices, pipes, water pipes, and vaporizers. d. Retail sales of cannabis that violate California law or this Code are expressly prohibited.

7. Floor Plan: Cannabis Retailers or other Cannabis Businesses with a retail component shall have a lobby waiting area at the entrance to receive clients, and a separate and secure designated area for dispensing cannabis to qualified patients or designated caregivers or to eligible adult use patrons. The primary entrance shall be located and maintained clear of barriers, landscaping and similar obstructions so that it is clearly visible from public streets, sidewalks or site driveways.

8. Hours of Operation: Hours of operation are limited to nine o’ clock (9:00) A.M. to nine o’ clock (9:00) P.M., seven (7) days a week.

D. Site Management:

16 1. The operator of the establishment shall take all reasonable steps to discourage and correct objectionable conditions that constitute a nuisance in parking areas, sidewalks, alleys and areas surrounding the premises and adjacent properties during business hours if directly related to the patrons of the subject dispensary. a. "Reasonable steps" shall include calling the police in a timely manner; and requesting those engaging in objectionable activities to cease those activities, unless personal safety would be threatened in making the request. b. "Nuisance" includes, but is not limited to, disturbances of peace, open public consumption of cannabis or alcohol, excessive pedestrian or vehicular traffic, illegal drug activity, harassment of passersby, excessive littering, excessive loitering, illegal parking, excessive loud noises, especially late at night or early in the morning hours, lewd conduct or excessive police detentions and arrests.

2. The operator shall take all reasonable steps to reduce loitering in public areas, sidewalks, alleys and areas surrounding the premises and adjacent properties during business hours.

E. Alcoholic Beverages: No Cannabis Retailer shall hold or maintain a license from the State Division of Alcoholic Beverage Control for the sale of alcoholic beverages, or operate a business on the premises that sells alcoholic beverages. No alcoholic beverages shall be allowed or consumed on the premises.

F. Delivery: A Cannabis Retailer located in the City may deliver cannabis to qualified patients and caregivers and to persons eligible for adult-use at their residence in the City or to the same class of persons outside the City’s jurisdiction. Such permissible delivery of cannabis to qualified patients or adults at least 21 years of age within the City limits shall be limited to delivery by lawfully operated, permitted retailers. All other cannabis delivery is a prohibited activity in the City, except where the City is preempted by Federal or State law from enacting a prohibition on such activity.

SECTION 9
Table 3 in Section 9223.1 of Article 18, Chapter 2 in Division 9 of the Ukiah City Code is hereby amended by removing from the column heading “Use Categories and Specific Uses” the reference to a Dispensary Use Permit (DUP) and specifying that a Cannabis Retailer is an allowable use with a Major Use Permit (MAUP), rather than with a DUP, in the General Urban (GU), Urban Center (UC), and Downtown Core (DC) zoning district.

SECTION 10
Article 19 of Chapter 2 in Division 9 of the Ukiah City Code is hereby amended to read as follows:

17 § 9254 CANNABIS CULTIVATION
* * *
B. Cultivation of Cannabis:
* * *

3. Indoor Commercial Cultivation Of Cannabis: It is hereby declared to be unlawful and a public nuisance for any person owning, leasing, occupying, or having charge or possession of any parcel within the City of Ukiah to cause or allow such parcel to be used for the commercial cultivation of cannabis, unless (a) the person is operating a Cannabis Retailer pursuant to a valid use permit, within the C1, C2, CN, M, and PD (commercial) zoning districts and in the GU, UC, and DC downtown zoning districts, and the space devoted to on-site cultivation at the Cannabis Retailer does not exceed twenty-five percent (25%) of the total floor area, but in no case more than five hundred (500) square feet; or (b) the person is operating a commercial Cannabis Cultivation business of any type in compliance with all requirements set forth in Sections 9261, 9262, and 9278 of this Code and with all applicable State laws and regulations including licensing requirements.

SECTION 11
Article 20 of Chapter 2 in Division 9 of the Ukiah City Code is hereby amended to read as follows (unchanged text is omitted and is shown by “* * *”):
§9261 DISCRETIONARY PLANNING PERMITS
* * *
D. ***
* * *

5. a. In all Zoning Districts in which they are a permitted use, the following Cannabis Related Businesses shall be considered major uses:

Cannabis Cultivation – Processor
Cannabis Cultivation – Specialty Cottage.

Cannabis Cultivation – Specialty Indoor.

Cannabis Cultivation – Specialty Mixed Light.

Cannabis Microbusiness.

Cannabis Nursery.

Cannabis Retailer.

18 Major Use Permits issued for Cannabis Related Businesses shall be subject to review after the first year of operation, and shall be subject to the review and revocation procedures set forth in Section 9174.2, subsections D and E of this Chapter. b. In all Zoning Districts in which they are a permitted use, the following Cannabis Related Businesses shall be considered minor uses:

Cannabis Distribution
Cannabis Manufacturer – Level 1
Cannabis Manufacturer – Packaging
Cannabis Manufacturer – Shared Use
Minor Use Permits issued for Cannabis Related Businesses shall be subject to review after the first year of operation, and shall be subject to the review and revocation procedures set forth in Section 9174.2, subsections D and E of this Chapter. * * *
SECTION 12
Article 21 of Chapter 2 in Division 9 of the Ukiah City Code is hereby amended to read as follows (unchanged text is omitted and is shown by “* * *”):
§9278 DEFINITIONS
***
B. ***
CANNABIS: Shall have the same definition as set forth for “Cannabis” in Business and Professions Code § 26001(e), as may be amended from time to time.

CANNABIS CULTIVATION: Shall have the same definition as set forth for “Cultivation” in Business and Professions Code § 26001(k), as may be amended from time to time.

CANNABIS CULTIVATION – INDOOR: Shall have the same definition as set forth for “Indoor Cultivation” in Title 4, California Code of Regulations, Section 15000(cc), as may be amended from time to time. For purposes of this Code, indoor cultivation involves cultivation of cannabis within a fully enclosed secure structure, as defined in section 9254 of this code.
***
CANNABIS CULTIVATION – MEDIUM INDOOR: A Cannabis Related Business operating under a State cultivator license, or a state cultivation license type subsequently established, and meeting the definition of “Medium Indoor” set forth in

19 Title 4, California Code of Regulations, Section 16201, as may be amended from time to time.

CANNABIS CULTIVATION – MEDIUM MIXED LIGHT: A Cannabis Related Business operating under a State cultivator license, or a state cultivation license type subsequently established, and meeting the definition of “Medium Mixed Light Tier 1 and 2” set forth in Title 4, California Code of Regulations, Section 16201, as may be amended from time to time.
***
CANNABIS CULTIVATION – PROCESSOR: A Cannabis Related Business operating under a State cultivator license, or a state cultivation license type subsequently established, and meeting the definition of “Processor” set forth in Title 4, California Code of Regulations, Section 16201, as may be amended from time to time. * * *
CANNABIS CULTIVATION – SMALL INDOOR: A Cannabis Related Business operating under a State cultivator license, or a state cultivation license type subsequently established, and meeting the definition of “Small Indoor” set forth in Title 4, California Code of Regulations, Section 16201, as may be amended from time to time.

CANNABIS CULTIVATION – SMALL MIXED LIGHT: A Cannabis Related Business operating under a State cultivator license, or a state cultivation license type subsequently established, and meeting the definition of “Small Mixed Light Tier 1 and 2” set forth in Title 4, California Code of Regulations, Section 16201, as may be amended from time to time.

CANNABIS CULTIVATION – SPECIALTY COTTAGE: A Cannabis Related Business operating under a State cultivator license, or a state cultivation license type subsequently established, and meeting the definition of “Specialty Cottage” set forth in Title 4, California Code of Regulations, Section 16201, as may be amended from time to time.

CANNABIS CULTIVATION – SPECIALTY INDOOR: A Cannabis Related Business operating under a State cultivator license, or a state cultivation license type subsequently established, and meeting the definition of “Specialty Indoor” set forth in Title 4, California Code of Regulations, Section 16201, as may be amended from time to time.

CANNABIS CULTIVATION – SPECIALTY MIXED LIGHT: A Cannabis Related Business operating under a State cultivator license, or a state cultivation license type subsequently established, and meeting the definition of “Specialty Mixed Light Tier 1 and 2” set forth in Title 4, California Code of Regulations, Section 16201, as may be amended from time to time.

CANNABIS DISTRIBUTION: Shall have the same meaning as the definition of “Distribution” set forth in Business and Professions Code § 26001(r), as may be amended from time to time.

CANNABIS DISTRIBUTOR: A Cannabis Related Business operating under a State Type 11 or 13 Distributor license, or a state distribution license type subsequently

20 established, and meeting the definition of “Distributor” set forth in Business and Professions Code § 26001(s), as may be amended from time to time.

CANNABIS MANUFACTURING: Shall have the same definition as set forth for “Manufacture” in Title 4, California Code of Regulations, Section 15000(oo), as may be amended from time to time.

CANNABIS MANUFACTURING – LEVEL 1: A Cannabis Related Business operating under a State Type 7 manufacturer license for extractions using volatile solvents, or a state manufacturer license type subsequently established, and meeting the definition of a Type 7 license set forth in Title 4, California Code of Regulations, Section 17006, as may be amended from time to time.

CANNABIS MANUFACTURING – LEVEL 2: A Cannabis Related Business operating under a State Type 6 manufacturer license for extractions using mechanical methods or nonvolatile solvents, or a state manufacturer license type subsequently established, and meeting the definition of a Type 6 license set forth in Title 4, California Code of Regulations, Section 17006, as may be amended from time to time.

CANNABIS MANUFACTURER – PACKAGING: A Cannabis Related Business operating under a State Type P license and meeting the definition of a Type P license set forth in Title 4, California Code of Regulations, Section 17006, as may be amended from time to time.

CANNABIS MANUFACTURER – SHARED USE: A Cannabis Related Business operating under a State Type S license and meeting the definition of a Type S license set forth in Title 4, California Code of Regulations, Section 17006, as may be amended from time to time.
* * *
CANNABIS MICROBUSINESS: A Cannabis Related Business operating under a State Type 12 license for microbusinesses, or a state cannabis license type subsequently established, and meeting the definition of “microbusiness” set forth in Business and Professions Code § 26001(aj), as may be amended from time to time. A Cannabis Microbusiness that also acts as a Cannabis Retailer must also comply with the provisions of Section 9174.3 of this Code.

CANNABIS NURSERY: A Cannabis Related Business operating under a State cultivation license for cannabis nurseries, or a state cultivation license type subsequently established, and meeting the definition of “Nursery” set forth in Business and Professions Code § 26001(ak), as may be amended from time to time.

CANNABIS PRODUCTS: Shall have the same definition as set forth for “Cannabis Products” in Business and Professions Code § 26001(h), as may be amended from time to time.

21 CANNABIS RELATED BUSINESS: An enterprise engaged commercial cannabis activity, as defined in Business and Professions Code § 26001(j), as may be amended from time to time.except as set forth in Business and Professions Code Section 26033 related to qualifying patients and primary caregivers, and Section 9254 of this Chapter pertaining to cultivation of cannabis for personal use. All Cannabis Related Businesses operating within the City must possess a valid State license appropriate for the type of business operated.

CANNABIS RETAILER: A commercial enterprise engaged in the retail sale and delivery of cannabis or cannabis products to customers. A retailer shall have a licensed premises which is a physical location from which commercial cannabis activities are conducted. A retailer’s premises may be closed to the public. A retailer may conduct sales exclusively by delivery. All Cannabis Retail operations in the City of Ukiah are regulated pursuant to the general regulations for Cannabis Related Businesses in Section 9174.2 of this Code and the regulations specific to Retailers in Section 9174.3.

CANNABIS TESTING LABORATORY: Shall have the same definition as set forth for “Testing Laboratory” in Business and Professions Code § 26001(av), as may be amended from time to time.
***
SCHOOL: Shall mean an institution of learning for minors, whether public or private, offering a regular course of instruction required by the California Education Code. This definition includes an elementary school, middle or junior high school, senior high school, or any special institution of education, but it does not include a vocational or professional institution of higher education, including any other college or university. ***
YOUTH-ORIENTED FACILITY: Shall mean a public park, as shown on the official zoning map for the City; church; museum; library; or licensed daycare facility.

SECTION 13

1. SEVERABILITY.

If any section, subsection, subdivision, paragraph, sentence, clause or phrase of this Ordinance, or its application to any person or circumstance, is for any reason held to be invalid or unenforceable, such invalidity or unenforceability shall not affect the validity or enforceability of the remaining sections, subsections, subdivisions, paragraphs, sentences, clauses or phrases of this Ordinance, or its application to any other person or circumstance. The City Council of the City of Ukiah hereby declares that it would have adopted each section, subsection, subdivision, paragraph, sentence, clause or phrase hereof, irrespective of the fact that any one or more other sections, subsections, subdivisions, paragraphs, sentences, clauses or phrases hereof be declared invalid or unenforceable.

22 2. EFFECTIVE DATE.

This Ordinance shall be published as required by law in a newspaper of general circulation in the City of Ukiah, and shall become effective thirty (30) days after its adoption.

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

AYES:

NOES:

ABSENT:

ABSTAIN:

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

AYES:

NOES:

ABSENT:

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

Agenda Item No: 12.a.

MEETING DATE/TIME: 7/20/2022
ITEM NO: 2022-1709

AGENDA SUMMARY REPORT
SUBJECT: Receive Report Regarding the Economic Development and Financing Corporation (EDFC); Consideration of Request for Funding from EDFC; and Authorizate the City Manager to Negotiate and Execute Performance Agreement Between the City of Ukiah and EDFC in the amount of $12,455.25 for FY 2022-23.

DEPARTMENT: Economic
Development PREPARED BY: Shannon Riley, Deputy City Manager PRESENTER: Shannon Riley, Deputy City Manager
ATTACHMENTS:

1. Ukiah City Council Presentation_072022

2. Economic Development and Financing Corporation (EDFC) 2021-07-01 Summary: The Council will receive the annual report from Economic Development and Financing Corporation (EDFC); consider request for funding from EDFC; and consider authorizing the City Manager to negotiate and execute Performance Agreement between the City of Ukiah and EDFC.

Background: The Economic Development and Financing Corporation (EDFC) is a non-profit, tax-exempt Community Development Financial Institution (CDFI), founded in 1995, that engages in economic development activity in Mendocino and Lake Counties. EDFC was formed through a partnership between Mendocino County’s four incorporated cities and the County to coordinate and support economic development activity Mendocino County-wide--and has now expanded its business into Lake County and Sonoma County. (Services for Sonoma County are paid for through a service contract.) When EDFC was formed, an assessment formula was developed by the participating entities—50 cents per capita for the County and 75 cents per capita for cities. Based on Ukiah’s population of 16,607, the contribution for 2022-23 would be $12,455.25.

Discussion: Robert Gernert, Executive Director, will present EDFC’s year-to-date activities to the Council (Attachment 1). The 2021-22 agreement with EDFC is provided as Attachment 2. City of Ukiah Economic Development Staff monitors this agreement and serves on the EDFC board.

With the presentation of this year-to-date report, Staff has determined that EDFC has met the requirements of the 2021-22 performance agreement.

Council is asked to receive a brief presentation from EDFC and consider this request for funding in the amount of $12,455.25. If so desired, the Council may direct the City Manager to negotiate and execute a performance agreement with EDFC for the 2022-23 fiscal year.

Recommended Action: Receive report regarding the Economic Development and Financing Corporation (EDFC) and authorize the City Manager to negotiate and execute Performance Agreement between the City of Ukiah and EDFC.

BUDGET AMENDMENT REQUIRED: No.

CURRENT BUDGET AMOUNT: 20012600.52100: $12,000

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

COORDINATED WITH: Economic Development and Financing Corporation

City of Ukiah
Annual City Council Update
ATTACHMENT 1

Connecting money and ideas with entrepreneurs and creating sustainable prosperity in Mendocino, Lake & Sonoma Counties We envision a vibrant local economy providing abundant
opportunity and rewarding quality of life to the communities we serve and future generations.

Vision
Mission

EDFC’s Foundations
• EDFC was started in 1994 as vehicle for economic development and funding across multiple jurisdictions throughout Mendocino County and the incorporated cities.
• Provide economic development coordination and support for:
• County of Mendocino
• City of Fort Bragg
• City of Point Arena
• City of Ukiah
• City of Willits
• Provide alternative financing opportunities for entrepreneurs and small businesses in Mendocino and Lake Counties
• EDFC is an incorporated non-profit organization.

EDFC Leadership
Staff Members:

Executive Director: Robert Gernert
Administrative Manager: Robin Peckham
Development Manager: Stacey Caico
Board of Directors: 15 Members including:
❖ County Supervisors: John Haschek, Glen McGourty
❖ Council Members: Madge Strong (Willits), Tess Albin-Smith (Fort Bragg)
❖ City Staff: Shannon Riley, Deputy City Manager Ukiah
❖ Business Owners, Finance Professionals, Pomo Tribe, Mendocino College, North Coast Opportunities

EDFC Results & Highlights
FY 21/22
• Total Lending FY 21/22: $1,937,489 (+59% vs. Previous FY) • Total Inquiries: 85
• Applications: 34
• Approved Loans: 15
• Jobs Retained: 19.5 FTE
• Jobs Created: 26.5 FTE
Low Portfolio Default Rate

0.7%

EDFC Loans Funds Circulating $ 4,329,425
Mendocino County:
$3,170,168
*Ukiah: $1,052,955
11 Businesses
Lake County:
$548,980
Sonoma County:
$610,269

Ukiah Client Highlights

Businesses EDFC has supported FY 21-22:

Mendocino County
• Elk Garage Towing
• Thompsons
PortaSeptic
• DFM Car Stereo
• Acosta E LLC
Trucking
• Threshold Services
LLC
• Center Street
Market
• Chickfly LLC
• So Humbled Inc.

Sonoma County
• Artisan Woodworks
Inc
• Psychic Pie LLC
• Uniquelly Chic
Home & Floral
• S.H. Nour Trucking
• Sternberger
Chiropractic
• Strategy Real Estate
LLC
Lake County
• North Coast
Winegrape Brokers

EDFC In Partnership with the City of Ukiah
EDFC partnered with the Center for Economic
Development at CSU, Chico to identify and assist in
providing direct technical assistance to
microbusinesses in the City of Ukiah.

Outreach efforts are ongoing in various methods,
such as direct business to business visits,
participating in Farmers Market, Chamber of
Commerce newsletters, and EDFC newsletters.

This program provides much needed technical
assistance to these microbusinesses free of cost.

Collaboration Local & Regional
• Economic Development:
• Sonoma Mendocino Economic Development District (S.M.E.D.D.)- EDFC continued administrative functions with the organization, assisted and facilitated Comprehensive Economics Development Strategy (CEDS) update as a Mendocino County representative. • Community Development Block Grant – (Covid Response CV 1 & 2) EDFC is the subrecipient of the loan/ grant awards for the cities of Point Arena and Willits. These programs are still active and in various stages of completion but in full provide an additional $600K to business within these cities most deeply affect by the pandemic. • Microbusiness Covid Relief Grant Program – In partnership with CALOSBA, and the County of Mendocino, EDFC has applied successfully for grant funding to administer $2,500 grants to Microbusiness within the County. Round 1 of Funding closed June 2 with a total of 92 businesses applying for available funds.
• Startup Mendo: In partnership with West Business Development Center, EDFC Director Robert Gernert, has served as one of three cohort leaders in the Startup Mendo Program since January of 2022.
• Loan Funds:
• CDFI Rapid Response Program: $ 1.3 Million Grant for loan funds of which $917,109 has been loaned in FY 21-22.
• Sonoma County Revolving Loan Fund: Launched $1 million EDA revolving loan fund for Sonoma County business loans of which $621,312 has been loaned in FY 21-22.

Thank You

1 Performance Agreement. EDFC- City of Ukiah FY 2021- 22

PERFORMANCE AGREEMENT
between the

CITY OF UKIAH
and the

ECONOMIC DEVELOPMENT AND FINANCING CORPORATON
This Agreement is made and entered on July __, 2021 between the City of Ukiah, a California general law municipal corporation, herein called " City," and the Economic Development and Financing Corporation EDFC), a California not-for-profit corporation formed pursuant to and in compliance with the laws of the State of California, herein called " EDFC." Individually, EDFC and City may be referred to in this Agreement as a Party,” and collectively as “the Parties.”

RECITALS

1. The City is desirous of creating a vital economic development climate through collaborative projects and the promotion of locally owned and operated small businesses.

2. EDFC is organized to provide assistance to individuals and small business owners by coordinating economic development activities in Mendocino County and in particular, the City of Ukiah, for the purpose of creating, expanding or retaining businesses. EDFC has expertise in economic development and in securing financing in the form of loans, grants, capital and venture capital funding, to assist with the development, expansion and/or retention of businesses.

3. EDFC was created in 1995 by the County of Mendocino and its incorporated cities in order to facilitate a countywide approach to economic development. At that time, a formula was developed for funding, whereby each city would pay 75 cents per capita per year and the County would pay 50 cents per capita per year. This formula, however, is not binding; compensation may also be based on performance of the agreed- upon scope of services and other terms outlined in this Agreement.

NOW, THEREFORE, in consideration of the above- recited facts and terms and conditions stated below, the Parties agree as follows:

A. TERM
This Agreement shall be effective from July 1, 2021 and shall terminate on June 30, 2022.

B. SCOPE OF SERVICES
EDFC shall perform the Scope of Services set forth in Exhibit A.

C. RECORDS, REPORTS AND ACCOUNTABILITY
EDFC shall maintain a bookkeeping system and books of account in accordance with generally accepted accounting principles consistently applied, which outline the accounting and utilization of City funds paid to the EDFC for services defined in this agreement. City shall have access to said books of account during regular business hours for purposes of inspection and audit. EDFC shall fully cooperate with the City and its agents and accountants during any such inspection and audit, including, but not limited to, making its employees, accountants, bookkeepers, or officials available to provide any requested information or documents. As stated in the Scope of Services in Exhibit A, EDFC shall furnish detailed annual reports by June 1, 2021.
1 ATTACHMENT 2

2 Performance Agreement. EDFC- City of Ukiah FY 2021- 22 D. FINANCIAL COMPENSATION BY CITY
In consideration of the EDFC’ s performance of the above services, and under the terms of this Agreement, the City shall pay the EDFC the sum of Eleven thousand, nine-hundred eighty-two dollars and seventy- five cents ($11,982.75) for fiscal year 2021-22 in order for the EDFC to accomplish the specific scope of work identified in Exhibit A. This sum of money shall constitute the entirety of City's financial contribution to the EDFC during the effective dates of this Agreement.

The compensation provided in this paragraph shall be paid to EDFC in installments as follows:

Terms of Payment. Payment to EDFC for services rendered in accordance with this contract shall be based upon submission of annual invoices for the work satisfactorily performed prior to the date of the invoice, which amounts shall be due and payable thirty ( 30) days after receipt by the City. The invoices shall be accompanied with a description of work performed on behalf of the City. Invoices shall be accompanied by documentation sufficient to enable the City to determine progress made.

E. INSURANCE AND INDEMNIFICATION
During the term of this Agreement, the EDFC agrees to indemnify and hold harmless the City, its officers, agents, and employees from and against any and all claims, losses, defense costs, or liability of any kind or nature which the City, its officers, agents, and employees may sustain or incur or which may be imposed upon them for injury to or death of persons, or damage to property as a result of, arising out of, or in any manner connected with the EDFC’s performance under the terms of this Agreement, excepting only liability arising out of the sole and active negligence of the City.

Without limiting the EDFC’ s indemnification, it is agreed that the EDFC shall maintain in force at all times during the performance of this Agreement, the following policy or policies of insurance summarized below and fully detailed in Exhibit A approved by the City and issued by admitted California insurers approved by the City covering its operations:

1. Comprehensive General Liability, including contractual liability, products, and completed operations and business automotive liability, all of which shall include coverage for both bodily injury and property damage with a combined single limit of One Million Dollars ($ 1,000,000).

2. Worker' s Compensation coverage at statutory limits.

The certificates of insurance and endorsements shall be completed to the satisfaction of the City.

Should the EDFC fail to comply with this paragraph then, the City shall have the right to immediately terminate this Agreement without further notice to EDFC.

F. RELATIONSHIP BETWEEN EDFC AND CITY
Nothing in this Agreement shall be construed as making the EDFC or any of its employees or representatives, the agent or employee of the City for any purpose, or any employee of the City an employee of the EDFC or creating between the City and the EDFC the relationship of legal partners or joint ventures. It is understood that the contractual relationship of the EDFC to the City is that of an independent contractor.

The key contact person involved in the implementation and administration of this Agreement with EDFC will be Jesse Burnett, Interim Executive Director of EDFC, or his designee. The key contact person for City of Ukiah will be Sage Sangiacomo, City Manager, or his designee.

3 Performance Agreement. EDFC- City of Ukiah FY 2021- 22 G. TERMINATION FOR NON- PERFORMANCE
If any Party to this Agreement breaches any provision thereof, then the other Party may give the defaulting Party a notice to remedy such violation within thirty (30) days. The other Party may terminate the Agreement: ( a) if such violation is not remedied within said 30 days; or (b) if the breach cannot be remedied within such time period.

Should this contract be terminated for breach on the part of the EDFC, in addition to any other remedies or compensation to which the City may be entitled, EDFC shall not be entitled to any further installment payments not yet paid at the time of breach.

A waiver by either Party of performance of any provision of this Agreement shall not amount to a future waiver of the strict performance of such provisions or of any other provision of this Agreement.

H. NON-PERFORMANCE DUE TO CONDITION BEYOND CONTROL OF PARTIES If either Party is unable to perform its obligations under this Agreement due to conditions beyond its reasonable control, such as, but not limited to, changes in local, state, or federal laws or regulations arising from legislative changes, judicial interpretations of existing law, vote by the citizens of Ukiah, or administrative action, and not due to the fault or neglect of any Party, such failure to perform shall not be deemed a violation of this Agreement provided the Party whose performance is so prevented performs its obligation as soon as practicable after the occurrence of the event preventing performance under this Agreement. Such Party shall use reasonable diligence to put itself again in a position to carry out its obligations hereunder, and in the event such Party does not or cannot within a reasonable time put itself again in a position to do so, the other Party may, at its option, terminate this Agreement.

I. MISCELLANEOUS PROVISIONS

1. WAIVER OR MODIFICATION INEFFECTIVE UNLESS IN WRITING No waiver or modification of the Agreement or of any covenant, condition, or limitations herein contained shall be valid unless in writing and duly executed by the Party to be charged therewith.

Furthermore, no evidence of any waiver or modification shall be offered or received in evidence in a proceeding, arbitration, or litigation between the parties arising out of or affecting this Agreement, or the rights or obligations of any Party hereunder, unless such waiver or modification is in writing and duly executed. The provisions of this paragraph may not be waived, except as herein set forth.

2. SEVERABILITY
In the event any section, subsection, provision, or clause of this Agreement or any combination thereof is found to be unenforceable at law, inequity, or under any presently existing or hereafter enacted legislation, regulation, or order of the United States, any state or subdivision thereof or any municipality, those findings shall not in any way affect the other sections, subsections, provisions, or clauses of this Agreement, which shall continue in full force and effect, and the unenforceable provisions shall be interpreted in a manner that imposes the maximum restriction or obligation permitted by applicable law.

Every provision of this Agreement is intended to be severable. If any term or provision hereof is illegal or invalid for any reason whatsoever, such illegality or invalidity shall not affect the validity of the remainder of the Agreement.

4 Performance Agreement. EDFC- City of Ukiah FY 2021- 22

3. NOTICE
Whenever notice is permitted or required by this Agreement, it shall be deemed given when deposited in the U.S. Mail with proper first class postage affixed thereto and addressed or personally delivered to:

City of Ukiah Economic Development & Financing Corporation Attention: Sage Sangiacomo Attn: Diann Simmons
300 Seminary Ave. 208 B South Oak St.

Ukiah, CA 95482 Ukiah, CA. 95482

4. DUPLICATE ORIGINALS
This Agreement may be executed in one or more duplicate originals, each bearing the original signatures of the parties. When so executed, each such duplicate original shall be admissible to establish the existence and terms of this Agreement.

5. AUTHORITY
The parties hereto acknowledge that they have the authority to execute this Agreement on behalf of the entity that they represent as herein set forth below.

6. GOVERNING LAW AND JURISDICTION
The interpretation and enforcement of this Agreement shall be governed by the laws of the State of California. All legal actions arising under this Agreement shall be filed in the California state courts in Mendocino County, which shall have jurisdiction and venue over any such actions or proceedings.

7. ENTIRE AGREEMENT
This Agreement supersedes any and all other agreements, either, oral or in writing, between the parties hereto with respect to the terms and conditions contained herein, and contains all of the covenants and agreements between the parties with respect to this Agreement in any manner whatsoever. Each Party to this agreement acknowledges that no representations, inducements, promises, or agreements, orally or otherwise, have been made by any Party, or anyone acting on behalf of any Party, which is not embodied herein, and that no other agreements, statement, or promise not contained in this agreement shall be valid or binding.

8. PLAIN MEANING
This Agreement shall be interpreted in accordance with its plain meaning, neither for nor against any Party.

9. HEADINGS AND CONTEXT
The headings of this Agreement are inserted for convenience only and do not define, limit or extend the scope or intent of this agreement or any provision thereof. When the context permits, a word or phrase used in the singular means the plural and when used in any gender, its meaning also includes all genders.

10. MERGER
This Agreement constitutes the entire understanding between the parties as to the terms and conditions contained herein, all previous understandings being merged herein.

5 Performance Agreement. EDFC- City of Ukiah FY 2021- 22

11. ADEQUATE ASSURANCES
Each Party shall execute, acknowledge and deliver such additional documents, writings or assurances as the other may periodically require so as to give full force and effect to the terms and provisions of this Agreement.

12. CONSTRUCTION OF AGREEMENT
This Agreement has been reviewed by separate counsel for both parties. Any ambiguity existing in this Agreement shall not be construed against either Party as the drafter of this Agreement.

13. TIME
Time is of the essence of this Agreement.

Acknowledgement:

IN WITNESS WHEREOF, this Agreement is executed by the City of Ukiah and the EDFC, by their duly authorized representatives, on the Effective Date.

CITY OF UKIAH ECONOMIC DEVELOPMENT &

FINANCING CORPORATION
By: _______________________ By: _______________________ Sage Sangiacomo, City Manager
Robert Gernert, Lending Manager
ATTEST:_______________________________________
Kristine Lawler, City Clerk
Kristine Lawler (Dec 21, 2021 09:32 PST)
Kristine Lawler

6 Performance Agreement. EDFC- City of Ukiah FY 2021- 22

EXHIBIT A

ECONOMIC DEVELOPMENT & FINANCING CORPORATION

SCOPE OF SERVICES
Contractor shall provide the following services:

1. Assist the City during the term of this agreement with support and coordination of economic development activities that encourage job retention, business expansion and business relocation within and to the City of Ukiah by coordinating activities with the County of Mendocino, tribal governments, Workforce Alliance of the North Bay., West Business Development Center/Mendocino SBDC, Sonoma Mendocino Economic Development District, and the Greater Ukiah Business and Tourism Alliance.

Performance Indicators
Provide key collateral in Spanish and procure translation services as necessary to more effectively reach the LatinX business community.

Continue to maintain current economic and demographic data for the Ukiah area on EDFC’ s website.

On a quarterly basis, make site visits to Ukiah-area businesses to share program info and determine needs, possibly in conjunction with other organization( s).

Continue to distribute the Resource Guide.

2. Provide services and programming as the local Community Development Financial Institution CDFI).

3. Assist with locating grant funding, loans, private and public capital, and venture capital funds to support Ukiah businesses and the City of Ukiah. Of particular interest are grants and low-interest loans that would assist with façade improvements and code-required improvements ( seismic retrofits, fire sprinklers, ADA improvements, etc.).

Performance Indicators
In the year-end report, detail the number of businesses assisted and the total amount of funds awarded to EDFC in the contract year that support economic development activities in the Greater Ukiah Valley.

4. Meet as needed with the City of Ukiah Business Liaison and inform the Liaison ( by phone or email) when assistance is either requested by or provided to a business within the Ukiah city limits.

Performance Indicator
Contact Business Liaison as required.

5. Communicate activities, service delivery, and fiscal reports to the City.

Performance Indicator
Submit a detailed annual report to the City Staff and City Council regarding activities and services during contract period and including the work plan for the up-coming year.

Agenda Item No: 12.b.

MEETING DATE/TIME: 7/20/2022
ITEM NO: 2022-1775

AGENDA SUMMARY REPORT
SUBJECT: Approve Contract with HdL Companies for Tax and Fee Administration Services for Transient Occupancy, and Approve Corresponding Budget Amendment.

DEPARTMENT: Finance PREPARED BY: Dan Buffalo, Finance Director PRESENTER: Ginny Feth-Michel, Assistant Finance Director ATTACHMENTS:

1. ASR 4-6-22

2. Ukiah HdL TOT Proposal
Summary: Council will consider re-authorizing the City Manager to execute a three-year contract with HdL Companies (“HdL”) for audit and financial management assistance of the City's Transient Occupancy Tax.

Background: Council considered this item on April 6, 2022, and approved the City Manager to execute an agreement with the following two conditions:

1. HdL commits to ensuring a positive professional audit experience while conducting TOT audits of the City's hotelers and short-term housing providers (AirBNB, VRBO, etc.)

2. HdL will allow the City to discontinue short-term rental monitoring component of the contract if the revenue recovered from that monitoring does not exceed the cost of HdL services for doing so.

HdL reaffirmed its commitment to the first condition as stated in its proposal, and the City retains remedies in the unlikely event that HdL does not deliver on that commitment.

HdL did not agree to the second condition but instead held to the one-year pricing option in its proposal, which could be more costly to the City if it terminates after that one year or does realize revenues greater than the cost of service and decides to continue for successive years.

A copy of the former ASR from April 6, 2022, is Attachment 1 for reference. The proposal from HdL is included here as Attachment 2.

Discussion: Staff recommends re-authorizing the City Manager to sign the agreement with HdL electing the standard three-year pricing in its proposal. The alternative one-year proposal may likely be more costly to the City and is not recommended by Staff. As the regional economy continues to improve (short of any potential recession), short-term rentals and the demand for lodging services will continue to grow and will likely result in recovered revenues that will support the associated costs.

The proposal includes a CPI component. Fees will be increased as of January 1st of each calendar year with reference to the 12-month percent change in the most recently published annual Consumer Price Index for All Urban Consumers (CPI-U), West Region, as reported by the U.S. Bureau of Labor Statistics (the “CPI Change”). Each annual increase in the fees will be equal to the greater of two percent (2%) or the actual CPI Change and the lesser of ten percent (10%) or the actual CPI Change. For example, if the actual CPI change is 1.5%, then the annual increase will be 2%. If the actual CPI change is 3.5%, then the annual increase will

be 3.5%, and if the actual CPI change is 12%, then the annual increase will be 10%. Note, this is a term contract (3 years) and will be re-evaluated and priced at the conclusion of the term.

Recommended Action: Re-authorize the City Manager to execute a three-year contract with HdL Companies for audit and financial assistance services of the City's Transient Occupancy Tax (TOT) revenue - including short term rental compliance, and authorize the corresponding budget amendment.

BUDGET AMENDMENT REQUIRED: Yes
CURRENT BUDGET AMOUNT: 10113400.52100: $500; 10013400.52100: $4,500 PROPOSED BUDGET AMOUNT: 10113400.52100: $4,500; 10013400.52100: $23,400 FINANCING SOURCE: General fund current revenues
PREVIOUS CONTRACT/PURCHASE ORDER NO.: N/A
COORDINATED WITH: : Daniel Buffalo, Finance Director; Mary Horger, Financial Services Manager; and Olga Keough, Controller

Agenda Item No: 7.m.

MEETING DATE/TIME: 4/6/2022
ITEM NO: 2022-1534

AGENDA SUMMARY REPORT
SUBJECT: Contract with HdL Companies for Tax and Fee Administration Services for Transient Occupancy, and Approve Corresponding Budget Amendment.

DEPARTMENT: Finance PREPARED BY: Ginny Michel, Assistant Finance Director PRESENTER: Ginny Feth-Michel, Assistant Finance Director ATTACHMENTS:

1. 20220330 Revised Ukiah HdL TOT Proposal

2. Cost Analysis
Summary: Council will consider authorizing the City Manager to negotiate and execute a three-year contract with HdL Companies (“HdL”) for audit and financial management assistance of the City's Transient Occupancy Tax, and approve a corresponding budget amendment.

Background: In November 2006, the voters of the City of Ukiah passed Measure X, which raised the Transient Occupancy Tax (TOT) in the City from 8% to 10%. City Council Resolution No. 2006-68 ("Resolution"), as amended August 28, 2006, specified that for the first two years after the increase went into effect, 75% of the additional revenue produced by the tax increase would be spent on promotion of the City of Ukiah and its tourist industry, and 50% thereafter. The Resolution provides that the revenues expended for promotion of the City of Ukiah and its tourist industry shall be administered by the Greater Ukiah Chamber of Commerce, subject to an annual performance agreement with the City of Ukiah.

Below is a historical summary of TOT collections.

The Finance Department conducted an internal review of the processes in place for administrating Transient Occupancy Tax (“TOT”) and concluded that exploring external options for TOT administration may improve the efficiency and effectiveness of the TOT monitoring and collection process. The most effective option for Attachment 1

outside administration was presented by HdL Companies. HdL currently provides sales tax monitoring and audit services to the City, and is well experienced and qualified to provide TOT services.

Discussion: Given the importance of TOT revenues to City operations, and the known presence of a large number of short-term rentals within the city limits, the Finance Department performed an evaluation of the process for communicating, tracking, collecting and monitoring TOT revenues. The City is currently administering Transient Occupancy Tax (“TOT”) internally with one staff member and oversight by a Financial Service Manager. Timely receipt of monthly TOT returns, tracking of payments, late fees and limited data monitoring is accomplished using an excel spreadsheet. Those required to file TOT returns have access to limited information on the City’s website; a non-fillable form is available for download from the City's website.

As the Finance department becomes aware of new lodging establishments, a Staff member contacts the establishment and provides forms and answers any questions. For example, when the new Holiday Inn Express & Suites opened in January of 2022, a finance Staff member contacted the hotel and provided them with the City’s TOT form and related information.

Many large cities have internal audit departments that would be charged with auditing TOT compliance.

Smaller municipalities generally contract for these services. The Department for several years planned to conduct a TOT audit, programming it in the budget regularly. The appropriation was not used, and it has not been re-appropriated since FY 2020. The pandemic effects on the city's hotels gave Staff pause to push an audit forward; however, as the economy improves and travel begins to return to normal, now is the time to reengage. Further, the prevalence of short-term rentals in the city necessitates a closer look to ensure TOT is being collected and remitted to the City appropriately.

On December 8, 2021, a Proposal was obtained from HdL. An evaluation team consisting of the City's Finance Controller, Assistant Finance Director, and the Finance Director reviewed the response, and asked a series of questions to HdL, to ensure a good fit for the City and the businesses required to comply with TOT requirements. The evaluation team concluded that HdL's services, including on-line filing, payment processing, education, compliance monitoring, auditing, and short term rental identification will meet the needs of the City, provide excellent potential to increase TOT collections and provide an easy to use business internet application for TOT return submission and payment of taxes and fees.

HdL Companies’ proposal is provided as Attachment 1, which proposes to provide the requested services in an amount of $850 per property per year plus 50% of all discovered revenue from short-term rentals up to $1,900 per year, whichever is higher for a period of three years. Attached as Attachment 2 is an estimate of current staffing costs and a comparison to the HdL proposal. Not included in the estimate is any additional TOT collected as a result of HdL audits and short-term rental identification. Those amounts would be subject to a case-by-case basis.

It is therefore Staff's recommendation to award a contract to HdL for TOT audit and financial management assistance services, authorize the City Manager to negotiate and execute the resulting agreement, and approve the corresponding budget amendment.

Recommended Action: Authorize the City Manager to negotiate and execute a three-year contract with HdL Companies for audit and financial assistance services of the City's Transient Occupancy Tax (TOT) revenue - including short term rental compliance, and authorize the corresponding budget amendment.

BUDGET AMENDMENT REQUIRED: Yes
CURRENT BUDGET AMOUNT: 10113400.52100: $0
PROPOSED BUDGET AMOUNT: 10113400.52100: $23,000
FINANCING SOURCE: General fund current revenues
PREVIOUS CONTRACT/PURCHASE ORDER NO.: N/A
COORDINATED WITH: Daniel Buffalo, Finance Director; Mary Horger, Financial Services Manager; and Olga Keough, Controller
Attachment 1

Attachment 1

City of
Ukiah, CA
Tax & Fee Administration Services
March 30, 2022

SUBMITTED BY
HdL Companies
120 S. State College Blvd., Suite 200
Brea, CA 92821
hdlcompanies.com

CONTACT
Connor Duckworth
T: 714-879-5000
E: [email protected]
Attachment 1

Dear Mary,
Thank you for the opportunity to present this proposal for HdL’s Tax and Fee Administration Services. Please be advised that we maintain a busy implementation schedule throughout the year. Your position in the implementation schedule will be determined when a signed agreement is received.

This proposal is valid until: May 31, 2022.

Should you have any questions, please contact me at 888.861.0220 or by email at [email protected].

Tax and Fee Administration Services
Standard 3-year pricing
Service Compensation
Transient Occupancy Tax
Administration
$850.00/property/year + CPI Monthly
Filers
$750.00/property/year + CPI Quarterly
Filers
Short Term Rental
Compliance/Discovery
50% of all recovered revenue with a
minimum cost of $1,900.00 + CPI
One Year Pricing
Transient Occupancy Tax
Administration and Audit
$850.00/property/year + CPI Monthly
Filers
$750.00/property/year + CPI Quarterly
Filers
Note: One year pricing includes auditing of
only 1/3 of active hotels.

Short Term Rental
Compliance/Discovery
$3,100.00/year + CPI
General Scope of Work
HdL offers robust solutions for managing compliance of municipal Business License Taxes and its related functions. HdL is ever mindful of the important role that customer service plays in the successful implementation of a compliance and revenue collection program. Therefore, HdL will make every effort to ensure that all communications with the City’s business community is kept at a professional level maintaining a careful balance between compliance, revenue collection, tactfulness, sensitivity and taxpayer education.

Attachment 1

Transient Occupancy Tax Administration Services
HdL’s transient occupancy tax administration service goes beyond scheduled cyclical audits, providing compliance monitoring of each return as it is filed while unburdening the City from the day-to-day administration of the TOT revenue program. Continual monitoring of returns is the optimal way to increase compliance while maintaining positive relations with the City’s lodging providers.

The program is education focused, ensuring that lodging providers are clear on reporting requirements and methodology. HdL’s tax administration professionals are available as needed to support both the City’s team and the City’s lodging providers. The City is kept up to date, with 24x7 online access to HdL’s client portal containing real time access to registration and filing data, and management reporting. HdL’s TOT administration service incorporates all of the following:

Tax Registration Database Management – HdL will transfer the City’s existing databases as they relate to TOT into HdL’s internal administration tools. HdL will maintain the data, software, online filing portal for lodging providers, and online client portal for the City.

Return Processing – HdL will process TOT filings within 5 days of submission. Accounts will receive all applicable forms necessary to complete the renewal process.

New Account Processing – HdL will process any new TOT registrations for Lodging Establishments that change hand or newly offered properties.

Payment Posting / Processing – HdL will process all payments made for new and existing lodging providers. Accounts will be updated with payment information and revenues will be remitted to the City net HdL’s fees on no less than a monthly basis.

On-Line Filing & Payment Processing – With input from the City, HdL crafts a customized website and domain for the City’s taxpayers to submit online forms, returns, and payments along with other customer support related items.

Compliance Monitoring & Lodging Provider Audits – HdL will ensure accurate filings of TOT returns by consistently monitoring returns and educating lodging providers on filing requirements. HdL will also provide cyclical compliance audits as mutually agreed to by the City and HdL, ensuring all providers are audited at least once every three years. The compliance audit process is described above in Option 1.

Reports – HdL’s TOT administration service includes a variety of standard reports demonstrating account activity and filing trends. During service implementation HdL will work with the City to identify reporting requirements and frequency/method of delivery and will supplement our standard service with custom reports as needed to meet the City’s requirements.

Attachment 1

Progress Payments – HdL’s TOT administration service is billed monthly based on activity completed during the prior month. If standalone audits are conducted, they are billed only upon completion of the audit.

Customer Support Center – HdL will provide lodging providers with multiple support options for registering, filing returns, making payments and for general inquiries. A toll-free number will be provided to businesses in order to access one of our tax specialists. Lodging providers will also have access to support via e-mail, fax, and the online Business Support Center.

Annual Audit Plan – During implementation, HdL gathers all the historical data available from the City and leverages internal data sources and expertise to provide an analysis of all lodging providers, along with a recommended audit schedule. This allows HdL to work cooperatively with the City to identify the entities that require attention first. HdL works directly with the City to ensure consensus on the audit schedule for the program.

HdL’s Transient Occupancy Tax - Audit Only Service
HdL’s Transient Occupancy Tax Audit Service employs a business-friendly approach which educates hoteliers in transient occupancy tax regulations and filing procedures, ensures compliance, and maximizes agency revenues. The process incorporates the following:

Ordinance and Filing Procedure Review – Analysis of Transient Occupancy Tax ordinances and agency procedures are conducted to identify possible deficiencies or other administration related issues. Recommendations are made by the audit team for items such as to best practices, form design, and potential ordinance modifications to insure the most effective policies and controls.

Analysis Report – HdL’s audit team will obtain and conduct a review of the most recent 36 months of transient occupancy tax filings. In order to verify and augment the data, the audit team will compile a variety of supplemental information on each property, including number of rooms, occupancy rate, physical condition, and business dynamics. Data is then further scrutinized in order to identify unusual or suspicious reporting and/or other variables that indicate cause for further review. Information and findings are documented in the analysis report for review with the Agency.

Analysis Review – Upon completion of the analysis report, meetings are scheduled with the agency to review the results as well as identify and recommend lodging providers who require additional investigation or examination to determine their compliance with the Agency’s ordinance.

Audit Notification & Scheduling – Lodging providers selected by HdL and approved by the Agency for an audit are sent a letter and scheduled for a Compliance Analysis Audit. Every effort is made to promote a positive experience for the taxpayer. Lodging providers will be reminded of the documents required for the audit that were discussed in webinars and previous communications. Lodging providers are afforded the opportunity to schedule flexible appointment times by contacting the Business Support Center or visiting our online support center.

Compliance Analysis & Audit – The HdL audit team reviews the books and records of the lodging provider to determine compliance with transient occupancy tax regulations. HdL Attachment 1

validates taxable gross rents, exemptions, bank statements, daily/monthly summaries, and other relevant information for determining compliance. Supporting documentation for relevant items such as exemptions will also be documented for accuracy.

Audit & Compliance Report – Upon completion of the audit and analysis, and prior to additional actions, a compliance report is generated and reviewed with the Agency. The report indicates specific results of the reviews and recommended actions. Documentation will be included with the report to assist the Agency and HdL in determining next steps.

Deficiency and Commendation Notification – Upon final review with the Agency, lodging providers that are found to have deficiencies are notified of the findings as well as payment and appeal processes. Appointments are also scheduled to review the findings and educate taxpayers on proper filing procedures designed to prevent future errors and deficiencies.

Lodging providers found to be compliant are sent a commendation letter thanking them for their cooperation and compliance.

Invoicing & Collections – Lodging providers found to be underreporting are invoiced through the standard Agency approved collections process identical to the procedures approved for other Programs. Balances are collected and remitted along with supporting documentation to the Agency through approved remittance processes.

Short Term Rental – Compliance Only Service
The Short-Term Rental (STR) Program provided by HdL takes a unique approach in ensuring compliance and educating lodging providers, including short term rental hosts (STR Hosts), in transient occupancy tax regulations and filing procedures, regulatory permits and licensing, and other City specific goals and objectives. HdL’s program involves a modular, customer service centric approach, which reduces City administrative costs and provides the City with assurances of future compliance and reporting practices from the City’s short-term rental lodging industry.

Following identification, HdL conducts a targeted education and compliance campaign designed to inform STR Hosts of their obligations to file and remit taxes and other requisite licenses and permits as may be needed. Each lodging provider is provided a full overview of the requirements and how to best comply both in the present and the future. During the registration process, HdL offers a variety of support options to the community including online filing, file-by-phone, email, and registration via standard mail. HdL tax and license specialists are available throughout the process to provide support to the STR community and to assist in the registration process.

Education, Registration, and Compliance
Using the list of active STR listings, HdL conducts a series of City approved education-based programs ranging from mailers to direct phone contacts. Each packet contains all the information necessary to obtain registration and comply with local requirements. HdL assists STR hosts throughout the program with information and support with all aspects of becoming compliant. During this program, HdL will:

Attachment 1

• Validate listing to ensure proper identification and filter out records that may lead to erroneous contacts.
• Notify non-compliant entities with a series of education-based packets designed to garner compliance.
• Provide a support center for assistance with general questions, support, and assistance with filing and paying returns.
• Provide online portal with links to FAQs, education packets, and support for registering, filing returns, and making payments online. • Follow up with non-compliant accounts to obtain registration • Work with City to identify additional requirements and ensure collection of data necessary to enforcement procedures.
• Establish optional implementation items such as amnesty programs, back tax and penalty provisions, and other pre-registration programs.

Attachment 1

Attachment 2
City of Ukiah
TOT Audit Proposal
TOT Admin
Short Term
Rental
Compliance
Cost per Proposal # Properties
$850 per
property per
year/ 3 year
term; + CPI
50% of
discovered
revenue or
$1,900 per
year
14 10
Number of Establishments 24 20,400.00
Monthly
Time
Fully Load
Hourly Rate Annual Cost
Staff 1 20 47.42 11,380.80
Reconciliation to GL
Sr. Accountant 8 68.34 2,186.88
Controller 4 95.76 1,532.16
Total - Kathy and Olga 15,099.84
TOT Administration 20,400.00
Short Term Rental Compliance 1,900.00
Estimate of Staff Time to Convert Date
Estimated Revenue Increase:

Audit of Filed Returns
Added Short-Term Rental Revenue
Estimated on-going Staff Time after Conversion
Sr. Accountant 4 68.34 1,093.44
23,393.44
Total Added Costs - TOT Admin Services and ST Rental Compliance 8,293.60 Proposal Costs
Estimate of Staff TOT Time - In House Administration
Not Included in
Estimate
Estimate of Costs - Hdl Companies Administration
Attachment 1

City of
Ukiah, CA
Tax & Fee Administration Services
March 30, 2022

SUBMITTED BY
HdL Companies
120 S. State College Blvd., Suite 200
Brea, CA 92821
hdlcompanies.com

CONTACT
Connor Duckworth
T: 714-879-5000
E: [email protected]
Attachment 2

Dear Mary,
Thank you for the opportunity to present this proposal for HdL’s Tax and Fee Administration Services. Please be advised that we maintain a busy implementation schedule throughout the year. Your position in the implementation schedule will be determined when a signed agreement is received.

This proposal is valid until: May 31, 2022.

Should you have any questions, please contact me at 888.861.0220 or by email at [email protected].

Tax and Fee Administration Services
Standard 3-year pricing
Service Compensation
Transient Occupancy Tax
Administration
$850.00/property/year + CPI Monthly
Filers
$750.00/property/year + CPI Quarterly
Filers
Short Term Rental
Compliance/Discovery
50% of all recovered revenue with a
minimum cost of $1,900.00 + CPI
One Year Pricing
Transient Occupancy Tax
Administration and Audit
$850.00/property/year + CPI Monthly
Filers
$750.00/property/year + CPI Quarterly
Filers
Note: One year pricing includes auditing of
only 1/3 of active hotels.

Short Term Rental
Compliance/Discovery
$3,100.00/year + CPI
General Scope of Work
HdL offers robust solutions for managing compliance of municipal Business License Taxes and its related functions. HdL is ever mindful of the important role that customer service plays in the successful implementation of a compliance and revenue collection program. Therefore, HdL will make every effort to ensure that all communications with the City’s business community is kept at a professional level maintaining a careful balance between compliance, revenue collection, tactfulness, sensitivity and taxpayer education.

Transient Occupancy Tax Administration Services
HdL’s transient occupancy tax administration service goes beyond scheduled cyclical audits, providing compliance monitoring of each return as it is filed while unburdening the City from the day-to-day administration of the TOT revenue program. Continual monitoring of returns is the optimal way to increase compliance while maintaining positive relations with the City’s lodging providers.

The program is education focused, ensuring that lodging providers are clear on reporting requirements and methodology. HdL’s tax administration professionals are available as needed to support both the City’s team and the City’s lodging providers. The City is kept up to date, with 24x7 online access to HdL’s client portal containing real time access to registration and filing data, and management reporting. HdL’s TOT administration service incorporates all of the following:

Tax Registration Database Management – HdL will transfer the City’s existing databases as they relate to TOT into HdL’s internal administration tools. HdL will maintain the data, software, online filing portal for lodging providers, and online client portal for the City.

Return Processing – HdL will process TOT filings within 5 days of submission. Accounts will receive all applicable forms necessary to complete the renewal process.

New Account Processing – HdL will process any new TOT registrations for Lodging Establishments that change hand or newly offered properties.

Payment Posting / Processing – HdL will process all payments made for new and existing lodging providers. Accounts will be updated with payment information and revenues will be remitted to the City net HdL’s fees on no less than a monthly basis.

On-Line Filing & Payment Processing – With input from the City, HdL crafts a customized website and domain for the City’s taxpayers to submit online forms, returns, and payments along with other customer support related items.

Compliance Monitoring & Lodging Provider Audits – HdL will ensure accurate filings of TOT returns by consistently monitoring returns and educating lodging providers on filing requirements. HdL will also provide cyclical compliance audits as mutually agreed to by the City and HdL, ensuring all providers are audited at least once every three years. The compliance audit process is described above in Option 1.

Reports – HdL’s TOT administration service includes a variety of standard reports demonstrating account activity and filing trends. During service implementation HdL will work with the City to identify reporting requirements and frequency/method of delivery and will supplement our standard service with custom reports as needed to meet the City’s requirements.

Progress Payments – HdL’s TOT administration service is billed monthly based on activity completed during the prior month. If standalone audits are conducted, they are billed only upon completion of the audit.

Customer Support Center – HdL will provide lodging providers with multiple support options for registering, filing returns, making payments and for general inquiries. A toll-free number will be provided to businesses in order to access one of our tax specialists. Lodging providers will also have access to support via e-mail, fax, and the online Business Support Center.

Annual Audit Plan – During implementation, HdL gathers all the historical data available from the City and leverages internal data sources and expertise to provide an analysis of all lodging providers, along with a recommended audit schedule. This allows HdL to work cooperatively with the City to identify the entities that require attention first. HdL works directly with the City to ensure consensus on the audit schedule for the program.

HdL’s Transient Occupancy Tax - Audit Only Service
HdL’s Transient Occupancy Tax Audit Service employs a business-friendly approach which educates hoteliers in transient occupancy tax regulations and filing procedures, ensures compliance, and maximizes agency revenues. The process incorporates the following:

Ordinance and Filing Procedure Review – Analysis of Transient Occupancy Tax ordinances and agency procedures are conducted to identify possible deficiencies or other administration related issues. Recommendations are made by the audit team for items such as to best practices, form design, and potential ordinance modifications to insure the most effective policies and controls.

Analysis Report – HdL’s audit team will obtain and conduct a review of the most recent 36 months of transient occupancy tax filings. In order to verify and augment the data, the audit team will compile a variety of supplemental information on each property, including number of rooms, occupancy rate, physical condition, and business dynamics. Data is then further scrutinized in order to identify unusual or suspicious reporting and/or other variables that indicate cause for further review. Information and findings are documented in the analysis report for review with the Agency.

Analysis Review – Upon completion of the analysis report, meetings are scheduled with the agency to review the results as well as identify and recommend lodging providers who require additional investigation or examination to determine their compliance with the Agency’s ordinance.

Audit Notification & Scheduling – Lodging providers selected by HdL and approved by the Agency for an audit are sent a letter and scheduled for a Compliance Analysis Audit. Every effort is made to promote a positive experience for the taxpayer. Lodging providers will be reminded of the documents required for the audit that were discussed in webinars and previous communications. Lodging providers are afforded the opportunity to schedule flexible appointment times by contacting the Business Support Center or visiting our online support center.

Compliance Analysis & Audit – The HdL audit team reviews the books and records of the lodging provider to determine compliance with transient occupancy tax regulations. HdL

validates taxable gross rents, exemptions, bank statements, daily/monthly summaries, and other relevant information for determining compliance. Supporting documentation for relevant items such as exemptions will also be documented for accuracy.

Audit & Compliance Report – Upon completion of the audit and analysis, and prior to additional actions, a compliance report is generated and reviewed with the Agency. The report indicates specific results of the reviews and recommended actions. Documentation will be included with the report to assist the Agency and HdL in determining next steps.

Deficiency and Commendation Notification – Upon final review with the Agency, lodging providers that are found to have deficiencies are notified of the findings as well as payment and appeal processes. Appointments are also scheduled to review the findings and educate taxpayers on proper filing procedures designed to prevent future errors and deficiencies.

Lodging providers found to be compliant are sent a commendation letter thanking them for their cooperation and compliance.

Invoicing & Collections – Lodging providers found to be underreporting are invoiced through the standard Agency approved collections process identical to the procedures approved for other Programs. Balances are collected and remitted along with supporting documentation to the Agency through approved remittance processes.

Short Term Rental – Compliance Only Service
The Short-Term Rental (STR) Program provided by HdL takes a unique approach in ensuring compliance and educating lodging providers, including short term rental hosts (STR Hosts), in transient occupancy tax regulations and filing procedures, regulatory permits and licensing, and other City specific goals and objectives. HdL’s program involves a modular, customer service centric approach, which reduces City administrative costs and provides the City with assurances of future compliance and reporting practices from the City’s short-term rental lodging industry.

Following identification, HdL conducts a targeted education and compliance campaign designed to inform STR Hosts of their obligations to file and remit taxes and other requisite licenses and permits as may be needed. Each lodging provider is provided a full overview of the requirements and how to best comply both in the present and the future. During the registration process, HdL offers a variety of support options to the community including online filing, file-by-phone, email, and registration via standard mail. HdL tax and license specialists are available throughout the process to provide support to the STR community and to assist in the registration process.

Education, Registration, and Compliance
Using the list of active STR listings, HdL conducts a series of City approved education-based programs ranging from mailers to direct phone contacts. Each packet contains all the information necessary to obtain registration and comply with local requirements. HdL assists STR hosts throughout the program with information and support with all aspects of becoming compliant. During this program, HdL will:

• Validate listing to ensure proper identification and filter out records that may lead to erroneous contacts.
• Notify non-compliant entities with a series of education-based packets designed to garner compliance.
• Provide a support center for assistance with general questions, support, and assistance with filing and paying returns.
• Provide online portal with links to FAQs, education packets, and support for registering, filing returns, and making payments online. • Follow up with non-compliant accounts to obtain registration • Work with City to identify additional requirements and ensure collection of data necessary to enforcement procedures.
• Establish optional implementation items such as amnesty programs, back tax and penalty provisions, and other pre-registration programs.

Agenda Item No: 13.a.

MEETING DATE/TIME: 7/20/2022
ITEM NO: 2022-1837

AGENDA SUMMARY REPORT
SUBJECT: The Ukiah City Council will Receive a Report on Energy Costs, and Provide Direction on Scheduling a Public Hearing to Consider Adoption of a Power Cost Surcharge Rider.

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

1. Ukiah Market Conditions - Summer 2022 Readiness 06-01-22 FINAL

2. Power Cost Surcharge
Summary: The Ukiah City Council will receive a report on energy costs, and provide direction to Staff on scheduling a Public Hearing to consider adoption of a Power Cost Surcharge Rider.

Background: In June, Council received a presentation (Attachment 1) on energy market conditions and the impacts of drought, natural gas prices, and inflation on the Electric Utility's budget. Due to the drought, hydroelectric facilities are seeing a decrease in water storage at levels around 50% of normal years. With the record low levels, hydro production is expected to provide significantly less energy for California customers this summer. Natural gas prices are elevated due to geopolitical pressures and reduced supply, and inflation has driven prices on the energy market up 32% - four times that of inflation. These issues have had a significant impact on the Electric Utility's budget.

In February, Council approved a yearly rate increase that incorporated projected energy cost numbers for five years. Following the approval of the increase, the effects of the drought, natural gas prices, and inflation have resulted in the energy forward cost projections to increase significantly - up to five times during some months.

These increases resulted in an increased expense budget that was approved by Council in June.

Discussion: In an effort to mitigate the increased expenses associated with procuring resources, Staff is recommending the implementation of a Power Cost Surcharge (Surcharge). The Surcharge would be applied to all electric rates and be applied to every kilowatt-hour (kWh) that is sold. The Surcharge would be calculated using a 12-month total of expenses divided by the total number of kWh procured and then be compared to that same value as of January 2022. The difference would be the Surcharge ($/kWh) that will be applied. The implementation of the Surcharge would begin on October 1, 2022, and happen every six months thereafter. The value of the Surcharge can be positive or negative and would be based on actual costs to the Electric Utility. Therefore, as power costs decrease, customer bills would be reduced. A copy of the proposed Surcharge Rider is included as Attachment 2.

Staff is seeking direction from Council on scheduling a Public Hearing to consider the adoption of the Power Cost Surcharge.

Recommended Action: Receive report and provide direction to Staff on scheduling a Public Hearing to consider adoption of a Power Cost Surcharge Rider.

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

FINANCING SOURCE: N/A
PREVIOUS CONTRACT/PURCHASE ORDER NO.: N/A
COORDINATED WITH: Sage Sangiacomo, City Manager; Dan Buffalo, Finance Director

Summer Readiness 2022
&
Market Conditions
Attachment 1

California Energy Policy
Among the most aggressive in the world
• 3700MW of natural gas plants scheduled for retirement in 2023 • 2280MW of nuclear generation scheduled for retirement in 2025 California projects a 1700MW shortage of
energy this summer!
• ≈ 12000MW of generation planned – not procured or built

26,293 21,942
13,566
31,674
18,905
28,537 30,431
45,159
36,815
41,496
44,134
38,887
39,550 38,931
8,629
3,140
3,994
6,096
15,445
-
-
8,109
12,679
9,510
5,855
4,047
7,572 8,109
13,721
33,035
13,858
6,263
11,761
33,487 33,986
7,990
5,320
29,175
19,357
23,427
6,861 5,738 109,901 112,931 111,599 113,379 112,472
116,007 117,195
-
20,000
40,000
60,000
80,000
100,000
120,000
140,000
2018 2019 2020 2021 2022 2023 2024

UKIAH LOAD & RESOURCES
(MWh)

GAS GEOT LT MARKET PURCHASES WAPA BR HYDRO DA PURCHASES LOAD

Market Pressures – Drought

Market Pressures – Gas Forwards

Market Pressures – Electric Forwards
Average FY23 power
prices are up 88%
August 2022 HL trading
at $160/MWh

Budget Pressures – Transmission
~$1m increase
to Ukiah’s costs

Market Pressures – Inflation 8.3%
June 2021
Janet Yellen (Treasury Secretary
and former Fed Chair) stated
recent rise in prices was
“transitory” and will subside
October 2021
Janet Yellen said inflation would
hit 3% but pricing pressures would
be “transitory”
December 2021
Janet Yellen says it’s time to stop
calling inflation “transitory”

Market Pressures – Inflation 8.3%, Energy 32% (BLS)

Market Pressures – Shrinking Supply
 NCPA’s 10y forecast assumes a normal/average operating year; however  NCPA adjusted forecasted Hydro generation down significantly  Antelope 1B COD postponed due to Federal action on solar panels  Western’s May 2022 BR forecast was 21% less than its April 2022 forecast for May 2022 and 8% less for June 2022
 Lodi Energy Center (LEC) on outage through June 19th and derated for the balance of 2022 (at least) to ~225 MW
 Supply chain issues canceling or postponing new projects  CAISO - Elliot Mainzer, “unlikely we don’t have outages in summer 2022” Question: Are these elevated market prices here to stay?

Ukiah’s NCPA Budget 2018-2023

Ukiah’s NCPA Budget 2018-2023

Market Pressures – IOUs

What are Rolling Blackouts VS PSPS Events?
• CALISO – California Independent
System Operator
• Manages flow of electricity on
CA’s transmission lines / dispatch
generation
• 4pm-10pm – High load, solar
declining
• Need “spinning reserves”

Questions?

Attachment 2
City of Ukiah Power Cost Surcharge Rider
The Power Cost Surcharge (Surcharge) is a per kilowatt-hour (kWh) charge that is used to ensure an adequate revenue stream to cover all power costs incurred by Ukiah Electric’s system: including generation, management of Utility owned facilities, and transmission costs through Northern California Power Agency (NCPA). The Surcharge will be assessed to all customers as an additional charge per kWh to their standard rate.

Calculation:

A 12-month running sum of actual metered dollars invoiced and metered kWh of load for the previous 12 months of the NCPA Net All Resources Bill (ARB) will be maintained. The Surcharge Factor for a particular month will be calculated as the previous12-month sum of actual metered NCPA net ARB invoiced amounts divided by the previous 12-month sum of the NCPA ARB metered kWh monthly loads adjusted for distribution losses. The Surcharge is set as the difference between Surcharge Factor of the semi-annual month and the January 2022 Surcharge Factor. The Surcharge can be negative or positive.

The Surcharge is implemented semi-annually on October 1 st and April 1st, with the first
ECA to begin on October 1, 2022.

Agenda Item No: 13.b.

MEETING DATE/TIME: 7/20/2022
ITEM NO: 2022-1847

AGENDA SUMMARY REPORT
SUBJECT: Consideration of New Ad Hoc Committee to Participate in the Recruitment Process for a New Police Chief.

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

None
Summary: Council will receive a report regarding the proposal to procure a specialty firm to assist the City with a customized and objective search for a new Police Chief, and will appoint two Councilmembers to serve on an ad hoc that will participate in the process.

Background: Following the unanticipated release of the former Police Chief in June, City Management is looking toward the selection process for a permanent replacement and recommends the development of an integrated recruitment and selection process with direct participation and leadership from the City Council.

Discussion: In the past two years, locally, there have been a significant number of high-profile incidents involving the police department. Similarly, nationwide, law enforcement has faced increased scrutiny and, in many cases, demands for major reform. Law enforcement work has changed dramatically over the last two decades. Youth who envisioned a satisfying career of protecting our communities now find themselves managing neglected cases of mental illness, skyrocketing drug abuse (coupled with deregulation), homelessness, and more, all with a shortage of tools or answers. These pressures, along with the high demands and chronic stress of the job, have had a negative impact on recruitment and retention industrywide.

It will be the responsibility of City leadership—from both the Police Department and the City Manager’s Office-- to navigate the impacts of these nationwide trends and the local conditions in order to facilitate the development of a high-functioning, community-oriented department. Therefore, the City intends to cast a wide net for recruitment in the interest of transparency and objectivity. In addition, the City Manager, in conjunction with the Purchasing Division, intends to develop and release a Request for Qualifications (RFQ) for a specialty firm to assist the City with a customized and objective search for a new Police Chief.

City Manager Sangiacomo recommends the development of a City Council Ad Hoc Committee to help guide this process. This committee would be tasked with working in partnership with the City Manager’s Office and Human Resources to provide direct leadership and oversight throughout the complete recruitment process.

Recommended Action: Appoint two ad hoc committee members to participate in the recruitment process for a new Police Chief.

BUDGET AMENDMENT REQUIRED: n/a
CURRENT BUDGET AMOUNT: n/a
PROPOSED BUDGET AMOUNT: n/a
FINANCING SOURCE: n/a

PREVIOUS CONTRACT/PURCHASE ORDER NO.: n/a
COORDINATED WITH: Sage Sangiacomo, City Manager and Sheri Mannion, HR Director

Agenda Item No: 13.c.

MEETING DATE/TIME: 7/20/2022
ITEM NO: 2022-1797

AGENDA SUMMARY REPORT
SUBJECT: Receive Updates on City Council Committee and Ad Hoc Assignments, and, if Necessary, Consider Modifications to Assignments and/or the Creation/Elimination of Ad Hoc(s).

DEPARTMENT: City Clerk PREPARED BY: Kristine Lawler, City Clerk PRESENTER: Mayor Brown and Various Councilmembers
ATTACHMENTS:

1. 2022 City Council Special Assignments
Summary: City Council members will provide reports and updates on their committee and ad hoc assignments. If necessary, the Council may consider modifications.

Background: City Council members are assigned to a number of committees and ad hoc activities. These assignments are included as Attachment 1.

Discussion: Previously, the City Council discussed having more time allocated to reporting on committee and ad hoc activities. Often, the Council Reports section of the regular agenda is rushed due to impending business (i.e., public hearings), and not enough time is afforded for reports beyond community activities.

In an effort to foster regular updates on committee and ad hoc assignments, this item is being placed on the agenda to provide the City Council members an expanded opportunity to report on assignments and modify assignments as necessary.

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

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

2022 CITY COUNCIL SPECIAL ASSIGNMENTS

COUNTY/REGIONAL
OnGoing One + Alternate MTG DATE/TIME MEETING LOCATION MAILING ADDRESS/CONTACT COMMITTEE FUNCTION ASSIGNED TO PRINCIPAL STAFF SUPPORT Disaster Council
Shall meet a minimum
of once a year at a
time and place
designated upon call of
the chair
Place designated upon call of the chair or, if she/he is unavailable or unable to call such meeting, the first vice chair and then the City Manager or her/his designee.

Office of Emergency Management 300 Seminary Ave. Ukiah, CA 95482467-5765 - Tami Bartolomei Develop any necessary emergency and mutual aid plans, agreements, ordinances, resolutions, rules, and regulations.

OrozcoDuenas- Alternate
Tami Bartolomei, Office of Emergency Management Coordinator; 467-5765 [email protected] Greater Ukiah Business & Tourism Alliance
3rd Tuesday of month, 11:30 a.m.
200 S School St.Ukiah, CA 95482
200 S School St.Ukiah, CA 95482
Promotes tourism and works to strengthen and promote the historic downtown and businesses within the greater Ukiah area DuenasRodin - Alternate
Shannon Riley, Deputy City Manager;
467-5793 [email protected]
Mendocino Council of Governments (MCOG)
1st Monday of month, 1:30 p.m.

Board of Supervisors Chambers
501 Low Gap Road
Ukiah, CA
Executive Director
367 N. State Street, Ste. 206Ukiah, CA 95482463-1859
Plan and allocate State funding, transportation, infrastructure and project County wide BrownRodin- Alternate
Tim Eriksen, Public Works Director/City Engineer; 463-6280 [email protected] Mendocino County Inland Water and Power Commission (IWPC) 2nd Thursday of month, 6:00 p.m.

Civic Center300 Seminary Avenueconference room 5
IWPC Staff P.O. Box 1247Ukiah, CA 95482391-7574 - Candace Horsley Develops coordination for water resources and current water rights: Potter Valley project - Eel River Diversion OrozcoBrown- Alternate
Sean White, Director of Water Resources; 463-5712 [email protected] Mendocino Solid Waste Management Authority (MSWMA)
3rd Thursday of every other month (varies), 10:00 a.m.

Willits Council Chambers
Solid Waste Director3200 Taylor DriveUkiah, CA 95482468-9710 County-wide Solid Waste JPA Brown Duenas- Alternate Tim Eriksen, Public Works Director/City Engineer; 463-6280 [email protected] Mendocino Transit Authority (MTA) Board of Directors
Last Wednesday of month, 1:30 p.m.

Alternating locations - Ukiah Conference Center or Fort Bragg, or Point Arena Executive Director241 Plant RoadUkiah, CA 95482462-1422 County-wide bus transportation issues and funding Duenas Orozco - Alternate Tim Eriksen, Public Works Director/City Engineer; 463-6280 [email protected] North Coast Opportunities (NCO) 4th Wednesday of month, 2 p.m. Alternating locations - Ukiah and Lakeport Ross Walker, Governing Board Chair North Coast Opportunities413 North State StreetUkiah, CA 95482 Assist low income and disadvantaged people to become self reliant Bartolomei(appointed 12/19/18)
Tami Bartolomei, Community Services Administrator; 467-5765 [email protected]
North Coast Rail Authority (NCRA) 2nd Wednesday of month, 10:30 a.m. Various Locations - announced 419 Talmage Road, Suite M Ukiah, CA 95482 463-3280 Provides a unified and revitalized rail infrastructure meeting the freight and passenger needs of the region Shannon Riley, Deputy City Manager Shannon Riley, Deputy City Manager; 467-5793 [email protected] 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 95472508-3670 Consider issues related to Russian river - plans projects and funding requests RodinBrown- Alternate
Tim Eriksen, Public Works Director/City Engineer; 463-6280 [email protected] Ukiah Valley Basin Groundwater Sustainability Agency (GSA) 2nd Thursday of month, 1:30 p.m.

Board of Supervisors Chambers; 501
Low Gap RoadUkiah, CA
County Executive OfficeNicole French501 Low Gap Rd., Rm. 1010Ukiah, CA 95482463-4441 GSA serves as the Groundwater Sustainability Agency inthe Ukiah Valley basin CraneDuenas- Alternate
Sean White, Director of Water Resources; 463-5712 [email protected]

COUNTY/REGIONAL
One + Staff Alternate MTG DATE/TIME MEETING LOCATION MAILING ADDRESS/CONTACT COMMITTEE FUNCTION ASSIGNED TO PRINCIPAL STAFF SUPPORT Economic Development & Financing Corporation (EDFC)
2nd Thursday of month, 2:00 p.m.

Primarily 631 S. Orchard Street (location varies)
Executive Director631 South Orchard AvenueUkiah, CA 95482467-5953 Multi-agency co-op for economic development and business loan program Riley(appointed 12/19/18)
Shannon Riley, Deputy City Manager; 467-5793 [email protected] Sun House Guild ex officio 2nd Tuesday of month, 4:30 p.m. Sun House 431 S. Main St. Ukiah, CA 431 S. Main Street Ukiah, CA 95482 467-2836 Support and expand Grace Hudson Museum Orozco Neil Davis- Alternate David Burton, Museum Director; 467-2836 [email protected] Continued -

COUNTY/REGIONAL
One + Staff Alternate

MTG DATE/TIME MEETING LOCATION MAILING ADDRESS/CONTACT COMMITTEE FUNCTION ASSIGNED TO PRINCIPAL STAFF SUPPORT Mendocino Youth Project JPA Board of Directors
3rd Wednesday of month, 7:45 a.m. 776 S. State Street Conference Room Mendocino Co. Youth Project776 S. State Street, Ste. 107Ukiah, CA 95482 707-463-4915 Targets all youth with a focus on drug and alcohol prevention, healthy alternatives and empowering youth to make healthy choices Cedric Crook, Patrol Lieutenant
Cedric Crook, Patrol Lieutenant Nob; 463-6771; [email protected] Northern California Power Agency (NCPA) - Commission
4th Thursday of month, 9:00 a.m. (see NCPA calendar)
Roseville, CAand other locations
651 Commerce Drive Roseville, CA 95678916-781-4202
Pool of State and local power utilities developing and operating power generation, providing scheduling and related energy services and providing regulatory and legislative support.

Crane - Commissioner Sauers - Alternate and
Commissioner in absence of Commissioner Crane
Cindi Sauers - Electric Utility Director;463-6286 [email protected] Northern California Power Agency (NCPA) – Lodi Energy Center (LEC) Appointment 2nd Monday of month, 10:00 AM Lodi, CA and other locations 651 Commerce DriveRoseville, CA 95678916-781-4299
Committee oversees the operation, maintenance and expenditures of the LEC 300 MW generating project.

Sauers – Project Participate Appointee
Cindy Sauers, Electric Utility Director,463‐6286, [email protected] Transmission Agency of Northern California (TANC)
4th Wednesday of month, 10 a.m.
35 Iron Point Circle Suite 225 Folsom, CA
35 Iron Point Cir #225Folsom, CA 95630916-852-1673; [email protected] Provide electric transmission to its Member utilities through transmission line ownership or contract arrangements.

CraneSauers - Alternate
Cindi Sauers - Electric Utility Director;463-6286 [email protected] 1 2/25/2022
ATTACHMENT 1

2022 CITY COUNCIL SPECIAL ASSIGNMENTS
LOCAL/COUNTY/REGIONAL/LIASONS OnGoing One or Two Council and/or Staff

MTG DATE/TIME LOCATION MAILING ADDRESS/CONTACT COMMITTEE FUNCTION ASSIGNED TO PRINCIPAL STAFF SUPPORT League of California Cities Redwood Empire Legislative Committee Prior to Division Meetings, meets 3x in person and then via conference call Various locations that are announced
Redwood Empire League President; Public Affairs Program Manager (916) 658-8243 Elected city officials and professional city staff attend division meetings throughout the year to share what they are doing and advocate for their interests in Sacramento Rodin Orozco-Alternate
Sage Sangiacomo, City Manager; 463-6221 [email protected] City Selection Committee Called as required by the Clerk of the Board BOS Conference Room 501 Low Gap Rd. Rm. 1090 Ukiah, CA C/O: BOS 501 Low Gap Rd., Rm 1090 Ukiah, CA 95482 463-4441 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 Library 463-4491 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 Rd Ukiah, CA 95482 462-1210 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 Rodin/Crane 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 2/25/2022

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 Policy 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]
Cannabis Ordinance Modifications Rodin/Duenas Craig Schlatter, Community Development Director 463‐6219 [email protected]
Special Districts Brown/Crane
Shannon Riley, Deputy City Manager
467‐5793 [email protected]
Public Financing Rodin/Orozco
Dan Buffalo, Director of Finance;
463‐6220 [email protected]
Corp Yard Crane/Brown
Jason Benson, Senior Civil Engineer
463‐6284 [email protected]
2022 AD HOC COMMITTEES
3 5/5/2022