Ukiah City Council
November 6, 2024

City Council
Regular Meeting
AGENDA
(to be held both at the physical and virtual locations below) Civic Center Council Chamber ♦ 300 Seminary Avenue ♦ Ukiah, CA 95482 To participate or view the virtual meeting, go to the following link: https://us06web.zoom.us/j/87952843503 Or you can call in using your telephone only:
• Call (toll free) 1-669 444 9171
• Enter the Access Code: 879 5284 3503
• To Raise Hand enter *9
• To Speak after being recognized: enter *6 to unmute yourself Alternatively, you may view the meeting (without participating) by clicking on the name of the meeting at www.cityofukiah.com/meetings.

November 6, 2024 - 5:15 PM

1. ROLL CALL

2. PLEDGE OF ALLEGIANCE

3. AB 2449 NOTIFICATIONS AND CONSIDERATIONS

4. PROCLAMATIONS/INTRODUCTIONS/PRESENTATIONS

4.a. Presentation and Award of Certificates to the 2024 Ukiah Leadership Academy Graduates.

Recommended Action: Receive presentation and award certificates to the 2024 Ukiah Leadership Academy graduates.

Attachments: None

4.b. Receive Annual Presentation from C&S Waste Solutions Regarding their Education and Outreach Program and Other Services.

Recommended Action: Receive Annual Presentation from C&S Waste Solutions regarding their Education and Outreach Program and other Services.

Attachments:

1. UWS Outreach 2024 letter

5. PETITIONS AND COMMUNICATIONS

6. APPROVAL OF MINUTES

6.a. Approval of the Minutes for the October 16, 2024, Regular Meeting.

Recommended Action: Approval of the Minutes for the October 16, 2024, Regular Meeting.

Attachments:

1. 2024-10-16 Draft Minutes

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

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

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

8.a. Authorize the City Manager to Negotiate and Execute a Lease Agreement with Federal Express (FedEx) to Lease a Hangar at the Airport.

Recommended Action: Authorize the City Manager to negotiate and execute a lease agreement with FedEx to a lease Hangar at the Airport.

Attachments:

1. Draft Agreement

8.b. Authorize the City Manager to Negotiate and Execute a Grant Agreement with the California Public Utilities Commission (CPUC) for the City of Ukiah Gigabit Fiber Project, and Approve Corresponding Budget Amendments.

Recommended Action: Authorize the City Manager to negotiate and execute a grant agreement and all other associated documents with the California Public Utilities Commission (CPUC) to receive funding for the City of Ukiah Gigabit Fiber Project, and approve corresponding budget amendments.

Attachments:

1. Application

2. CPUC_Draft_Resolution

3. FFA_Consent_Form

4. Government-Agency-Taxpayer-ID-Form

8.c. Consideration of Adoption of Resolution Approving Side Letter to the Current Memorandum of Understanding Between the City of Ukiah and the Management Unit.

Recommended Action: Adopt a Resolution approving a side letter to the current Memorandum of Understanding between the City of Ukiah and the Management Unit.

Attachments:

1. Resolution and Side Letter between the City of Ukiah and Management Unit

8.d. Finance Department Staffing Allocation and Classification Changes for Billing and Accounting/Analyst Services.

Recommended Action: It is recommended that the City Council:

1. Approve the proposed restructuring of certain Finance Department Staff, specifically:
o Replacing vacant Customer Services Representative (CSR) and Financial Services Manager positions with a Controller and Assistant Finance Director, the latter to fill the vacancy created by the current Assistant Finance Director’s retirement on December 31, 2024.
o Authorize the adjustment of the existing Billing and Customer Services Manager salary schedule to the next tier to reflect expanded responsibilities associated with enhanced services, including consideration of the Ukiah Valley Water Authority (UVWA) consolidation.

2. Direct the Finance Department to incorporate these changes into the current (FY 2024-25) budget.

Attachments:

1. Management Unit Salary Schedule

8.e. Adoption of Resolution Establishing and Repealing Time Limits for Parking on Designated Streets Pursuant to Ukiah City Code Sections 7160, 7161, 7163, and 7164.

Recommended Action: Adopt a resolution establishing and repealing time limits for parking on designated streets pursuant to Ukiah City Code sections 7160, 7161, 7163, and 7164.

Attachments:

1. Parking Changes Resolution (3)

8.f. Approve a Non-Exclusive Interfacility Ambulance Service Agreement with Back-Up Providers and Authorize the City Manager to Negotiate and Execute these Agreements with Eligible Providers.

Recommended Action: Approve an Interfacility Ambulance Service Agreement with Back-Up Providers and authorize the City Manager to negotiate and execute these agreements with eligible providers.

Attachments:

1. UVFD-AHHM-AHUV-AHCL Transportation Services Agreement Nonemergent Final (1)

2. Draft. Interfacility Back Up Agreement

9. AUDIENCE COMMENTS ON NON-AGENDA ITEMS
The City Council welcomes input from the audience. If there is a matter of business on the agenda that you are interested in, you may address the Council when this matter is considered. If you wish to speak on a matter that is not on this agenda that is within the subject matter jurisdiction of the City Council, you may do so at this time. In order for everyone to be heard, please limit your comments to three (3) minutes per person and not more than ten (10) minutes per subject. The Brown Act regulations do not allow action to be taken on audience comments in which the subject is not listed on the agenda.

10. COUNCIL REPORTS

11. CITY MANAGER/CITY CLERK REPORTS

12. PUBLIC HEARINGS (5:30 PM)

12.a. Approval of an Application for a 'Demolition Permit' to Remove an Existing Residential Structure Subject to Historical Review, Located at 233 Thomas Street; APN 003-084-02.

Recommended Action: Approve the 'Demolition Permit' to remove an existing residential structure subject to historical review, located at 233 Thomas Street; APN 003-084-02.

Attachments:

1. Application Materials - Demolition Review

2. Assessor Records (003-048-012)

3. UCC Section 3016 (Historic Demolition Regulations)

4. Demolition Review Committee (10-21-2024) Regular Meeting - Draft Minutes

12.b. Consideration and Possible Adoption of a Resolution Adjusting Fees for Pre-Hospital Emergency Medical Services and Ambulance Transportation Provided by the Ukiah Valley Fire Authority
Recommended Action: Adopt Resolution adjusting fees for Pre Hospital Emergency Medical Services (PHEMS) and Ambulance Transportation provided by the Ukiah Valley Fire Authority.

Attachments:

1. AP Triton Fee Memo-2021

2. Ambulance Fee Resolution 2024

13. UNFINISHED BUSINESS

13.a. Approval of Notice of Completion for Runway 15-33 Pavement Rehabilitation Phase 2 Project, Specification No. 21-06, and Approve Final Payment and the 2% Retention to Royal Electric's Construction Company.

Recommended Action: Approve the Notice of Completion for Runway 15-33 Pavement Rehabilitation Phase 2 project, Specification No. 21-06, and Approve Final Payment and the 2% Retention to Royal Electric's Construction Company.

Attachments:

1. Plans & Specifications

2. Notice of Completion

14. NEW BUSINESS

14.a. Consideration and Approval of Revised Water Interconnection, Wheeling, and Mutual Aid Agreements Between the City of Ukiah and Millview County Water District and Between the City of Ukiah and Willow County Water District.

Recommended Action: Authorize and direct the City Manager to Execute the agreements and perform any following necessary actions.

Attachments:

1. Millview Agreement

2. Willow Agreement

14.b. Receive Updates on City Council Committee and Ad Hoc Assignments, and, if Necessary, Consider Modifications to Assignments and/or the Creation/Elimination of Ad Hoc(s).

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

Attachments:

1. 2024 City Council Special Assignments and Ad Hocs

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

15.a. Conference with Legal Counsel – Anticipated Litigation (Government Code Section 54956.9(d)(4))
Initiation of litigation (4 cases)

15.b. Conference with Legal Council - Anticipated Litigation Government Code Section 54956.9(d)(2)
Significant exposure to litigation (1 case)

15.c. Conference with Legal Counsel – Existing Litigation (Government Code Section 54956.9)
Name of case: Ukiah v. Questex, Mendocino County Superior Court Case No. 15-66036

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

15.e. Conference with Legal Counsel – Existing Litigation (Government Code Section 54956.9(d)(1))
Name of case: Russian River Keepers et al. v. City of Ukiah, Case No. SCUK-CVPT-20-74612

15.f. Conference with Real Property Negotiators
(Cal. Gov't Code Section 54956.8)
Property: APN Nos: 180-110-12; 180-120-15; 180-120-16
Negotiator: Shannon Riley, Deputy City Manager
Negotiating Parties: GMB Realty Partners, Inc.

Under Negotiation: Price & Terms of Payment

15.g. Conference with Real Property Negotiators
(Cal. Gov't Code Section 54956.8)
Property: APN Nos: 002-232-05 and 002-282-02
Negotiator: Sage Sangiacomo, City Manager
Negotiating Parties: Bartolomei Trustees
Under Negotiation: Price & Terms of Payment

15.h. Conference with Real Property Negotiators
(Cal. Gov’t Code Section 54956.8)
Property: APN No: 170-150-10-00
Negotiator: Sage Sangiacomo, City Manager
Negotiation Party: Twenty Years of Bliss LLC
Under Negotiation: Price & Terms of Payment

15.i. Conference with Labor Negotiator (54957.6)
Agency Representative: Sage Sangiacomo, City Manager
Employee Organizations: All Bargaining Units

16. ADJOURNMENT
Please be advised that the City needs to be notified 72 hours in advance of a meeting if any specific accommodations or interpreter services are needed in order for you to attend. The City complies with ADA requirements and will attempt to reasonably accommodate individuals with disabilities upon request. Materials related to an item on this Agenda submitted to the City Council after distribution of the agenda packet are available for public inspection at the front counter at the Ukiah Civic Center, 300 Seminary Avenue, Ukiah, CA 95482, during normal business hours, Monday through Friday, 8:00 am to 5:00 pm. Any handouts or presentation materials from the public must be submitted to the clerk 48 hours in advance of the meeting; for handouts, please include 10 copies.

I hereby certify under penalty of perjury under the laws of the State of California that the foregoing agenda was posted on the bulletin board at the main entrance of the City of Ukiah City Hall, located at 300 Seminary Avenue, Ukiah, California, not less than 72 hours prior to the meeting set forth on this agenda.

Kristine Lawler, CMC/CPMC
Dated: 11/01/24

Agenda Item No: 4.a.

MEETING DATE/TIME: 11/6/2024

ITEM NO: 2022-2191

AGENDA SUMMARY REPORT
SUBJECT: Presentation and Award of Certificates to the 2024 Ukiah Leadership Academy Graduates.

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

None
Summary: Thirteen City of Ukiah team members have completed the fourth Ukiah Leadership Academy and will receive Certificates of Completion.

Background: The City Manager is pleased to announce the completion of the 2024 Ukiah Leadership Academy. This innovative program was developed in 2017 as a result of input on the employee satisfaction surveys and to help address the need for succession planning.

Over the course of this year, 13 participants from various departments have attended monthly sessions, culminating in the presentation of their “class project” in the City Council Chambers.

While all City employees have opportunities for technical training related to their specific positions, it can be difficult to obtain the “soft skills” associated with a leadership position. This program seeks to provide that.

Attendees heard firsthand from upper management in the organization about topics like navigating communication with the community, the media and the elected officials, leading vs. managing, and more.

The Academy allows the City to develop talent internally and provide additional opportunities for advancement to those team members who have already invested in the agency. It will improve communication between departments and, ultimately, the City’s service to the community.

Each session was held at a different City facility and included a tour of that location. “Homework” projects included practicing agenda summary reports. Each participant selected a topic that would make City operations more efficient in some way, researched that topic, and developed an agenda summary report and a presentation around it. Strong work was done by these team members, and many of these projects may result in actual presentations to Council in the future.

Discussion: The 2024 participants were:
• AJ Johnson, Finance Service Specialist I
• Alejandro Vargas, Senior WWTP Operator
• Daniel Davis, Lead IT Specialist
• Daniel Spence, Recreation Supervisor
• Diana Ramos, Assistant Accountant
• Jack Gulbrandsen, Lead Equipment Mechanic
• Max Brazill, Administrative Lieutenant
• Michael Maldonado, Assistant Facility Manager
• Robert Hulbert, Lead Water/Sewer Attendant

• Robert Ricetti, Park Service Worker
• Ryan Nelson, Battalion Chief
• Seth Strader, Public Works Department Analyst II
• Tyler Anderson, Environmental Lab Tech III
The City would like to recognize the achievements of these individuals.

Recommended Action: Receive presentation and award certificates to the 2024 Ukiah Leadership Academy graduates.

BUDGET AMENDMENT REQUIRED: n/a
CURRENT BUDGET AMOUNT: n/a
PROPOSED BUDGET AMOUNT: n/a
FINANCING SOURCE: n/a
PREVIOUS CONTRACT/PURCHASE ORDER NO.: n/a
COORDINATED WITH: n/a
DIVERSITY-EQUITY INITIATIVES (DEI):

Goal 1 – Create and sustain a diverse, equitable, and inclusive workplace and workforce that reflects, values, and celebrates the diverse community we serve. Goal 3 – Recruit, retain and advance a community of staff that reflects, values, and celebrates the diversity of the community we serve CLIMATE INITIATIVES (CI): n/a
GENERAL PLAN ELEMENTS (GP): n/a

Agenda Item No: 4.b.

MEETING DATE/TIME: 11/6/2024

ITEM NO: 2024-771

AGENDA SUMMARY REPORT
SUBJECT: Receive Annual Presentation from C&S Waste Solutions Regarding their Education and Outreach Program and Other Services.

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

1. UWS Outreach 2024 letter

2. Presentation given at meeting.

Summary: Council will receive an annual presentation from C&S Waste Solutions regarding their education and outreach program and other services.

Background: C&S Waste Solutions is the City of Ukiah's waste hauler, responsible for the weekly curbside collection, fall leaf collection as well as operating the transfer station in Ukiah and the surrounding areas.

Discussion: A representative from C&S will present the items described in Attachment 1 as well as other services performed by the waste hauler. Additional info graphics will be uploaded before the Council Meeting.

Recommended Action: Receive Annual Presentation from C&S Waste Solutions regarding their Education and Outreach Program and other Services.

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: Tim Eriksen, Director of Public Works/City Engineer DIVERSITY-EQUITY INITIATIVES (DEI):

CLIMATE INITIATIVES (CI): 3a – Continue to lead the way in solid waste diversion including the diversion of compostable food.

GENERAL PLAN ELEMENTS (GP): GP-A4 - Public Facilities, Services, and Infrastructure Element

September 03, 2024
Sage Sangiacomo
City Manager
City of Ukiah
300 Seminary Avenue
Ukiah, CA 95482
Dear Sage,
Attached please find a recap of Public Education and Outreach activities that Ukiah Waste Solutions undertook in calendar year 2024 as well as activities planned for 2025.

Ukiah Waste Solutions (UWS) recognizes the importance of a comprehensive Public Education and Outreach program to stimulate participation in diversion programs, meeting the community's goal of waste reduction and proper recycling. We undertook a number of initiatives last year and have planned to expand upon these as we move forward in 2025, and to bolster our existing outreach program in the City of Ukiah to include SB1383 legislation.

In 2024 we expanded our team once again to reinforce our public education efforts. Our education efforts are at the forefront of all customer contacts, whether it be during a phone call, web inquiry, contacts made during waste audits or at tours and presentations to schools and civic organizations.

We look forward to discussing all of this with you in the near future and welcome any suggestions that the City of Ukiah might offer.

Sincerely,
Michelle Goodman
Ukiah Waste Solutions
ATTACHMENT 1

Recap of Ukiah Waste Solutions Outreach Activities in 2024 Newsletters and Directed Literature
• Newsletters were inserted in customer billings in April and will be in October • A variety of materials were provided to the City's Utility Department for display and or handouts when residents visit City Hall. These materials included such items as targeted recycling information, company newsletters, new start mailer pamphlets, and recycling magnets for home use.
• All new customers were provided with recycling information upon initiation of service.
• General announcements of the biannual Leaf Collection Program City of Ukiah Website
• Online interactive waste widget
• Announcement of the biannual Leaf Collection Program was included on the City's website.

Specific Outreach
• Ukiah Waste Solutions educated commercial customers about the mandatory commercial recycling requirements required by CalRecycle • Ukiah waste Solutions made contact with commercial accounts to inform them of AB1826, AB341, and SB1383 requirements.

Community Events/Presentations/Tours
• Ukiah Waste Solutions staffed information booths at Touch A Truck, Earth Day, the Pumpkin Festival, and the Redwood Empire Fair.
• Site visits were offered to the multiple commercial customers to encourage participation in Mixed Organic Waste services
• Presentations were given at the South Ukiah Rotary Club and Chamber of Commerce focusing on recycling.
• UWS has collaborated with Climate Action Mendocino to assist in their goal to better Ukiah’s environmental footprint
• Tours of the company's Material Recovery Facility were given to schools, civic groups, and city employees.
• Mixed Organic Waste carts were provided at various City events.

Route Activities
• Collection Routes were audited to assure customer compliance with recycling requirements in an effort to reduce contamination of materials. Information was left on customer's carts, literature mailed, and follow-up phone calls were made as necessary.
• Route audits were made to assure that company carts were properly marked and labeled.

Social Media
• Ukiah Waste Solutions utilized their Facebook Page to interact with customers in a convenient and timely manner.
• Created and shared educational videos on our social media page • Created and shared educational graphics on our social media page • Provided collection updates, upcoming event announcements, and other necessary items as needed
Ukiah Waste Solutions Planned Outreach Activities for 2025 New for 2025
• The waste widget will continue to be promoted as a valuable tool providing the community a digital outlet to strengthen efforts towards waste reduction and proper recycling. It will again be audited and updated to provide more comprehensive information. As we audit our data, and add more items to our waste widget, it will further it’s usability.
• Ukiah Waste Solutions will continue to produce videos to be used for outreach and education.
• Educational decals will continue to be updated and placed on our fleet of collection trucks.

Newsletters and Directed Literature
• Newsletters inserted in customer billings for April and October • Continue providing materials to the City's Utility Department for display and or handouts when residents visit City Hall. These materials include items such as targeted recycling information, company newsletters and recycling magnets for home use.
• All new customers will be provided with recycling information upon initiation of service.
• General announcements will be placed in local print publications, as well as online versions, highlighting both recycling and mixed organic waste education as well as additional programs offered.

City of Ukiah Website
• Announcements of programs such as the biannual Leaf Collection Program will be advertised through the city website as well as encouraging city residents to visit our online waste widget.

Direct Mail
• Additional direct mailers regarding single stream recycling and mixed organic waste collection may be sent as needed.
• Once we implement SB1383 language we will provide direct mailers, with the city’s approval and review, to provide information on SB1383 compliance. This would include a letter explaining the law, and applicable waiver form if applicable.

• All new customers will receive a new start pamphlet that includes single stream recycling and mixed organic waste recovery information, as well as necessary service information.
• If Outreach Coordinator’s cannot reach a generator that has cart or bin contamination they will be mailing them a letter and educational material.

Specific Outreach
• Ukiah Waste Solutions will continue to educate commercial customers about the mandatory commercial recycling and organics requirements under State regulation. Site visits will be made to any commercial customer covered under this regulation found not to be participating in or complying with the recycling requirements.
• All schools in Ukiah will be contacted to offer a classroom/assembly presentation, field trip, and in-person technical training.

Community Events/Presentations/Tours
• Ukiah Waste solutions will continue to staff informational booths at events such as Earth Day events, the Pumpkin Festival, the Redwood Empire Fair, and earth day events. We are also open to attending more events as they are created. • Presentations will be given to local schools and campus clubs. Any organization who would like to educate their members on proper recycling and waste reduction are welcome to request a presentation.
• We are working towards restarting a paper recycling program with the Environmental club at Ukiah High School in 2025, if the club is still as interested as they were in 2024.
• Tours of the company's Material Recovery Facility will be encouraged. • Ukiah Waste Solutions staff will work in conjunction with city staff to ensure that both recycling and mixed organic waste carts will continue to be provided and properly utilized at various City events.

Route Activities
• Collection Routes will be audited to assure customer compliance with recycling requirements in an effort to reduce contamination of materials. Information is left on customer's carts, literature mailed, and follow-up phone calls made as necessary.
• Route audits will be made to assure that company carts are properly marked and labeled.
• Once SB1383 language is incorporated into our franchise agreements we will be begin the SB1383 mandated “Lid Flips” that will survey 10 percent of all routes for contamination data.

Social Media/Internet outlets
• The waste widget will continue to be updated as recycling requirements change.

This internet based platform will allow members of the community to access up to date recycling and waste reduction information.

• Ukiah Waste Solutions will continue to utilize their Facebook Page to interact with customers in a convenient and timely manner; supplying content to educate the community about recycling challenges and waste reduction. • Ukiah Waste Solutions will continue to produce videos to be used for outreach and education.

Annual Public Education and Outreach Update
Presented by: Michelle Goodman
Outreach Manager

FR
C a l l u s a t 7 0 7 - 234 - 6 4 0 0 i f y o u a r e i n t e r e s t e d We Offer Lots of Free Public Education!
Facility Tours
School Presentations & Trainings
Group Presentations
Bilingual On-Site trainings at commercial businesses and apartment complexes
Bilingual flyers, posters, magnets, newsletters, and more Public Education Booths at Events

FR
Helpful Educational Labels Are Put On
Each New Cart!
Landfill: Grey cart body
with a grey lid
Recycle: Grey or Blue cart
body with a blue lid
Organics: Grey or green
cart body with a green lid

FR
Waste Widget
Property of Waste Connections, Inc 4
www.candswaste.com

FR
New Recycling Opportunities
Paper Cup Recycling
• Paper cups only. No lids.
• Paper Cup Survey: 2358
responses
• Billboard on 101
• Spotify Ad
• Social Media Advertising
• Newspaper Advertisement
Plastic Bag Recycling
• Plastic Bag Drop Off At
Ukiah Transfer Station
• Plastic bags are recycled
into outdoor products
• Plastic bags are still not
accepted in the curbside
bins
Textile Recycling (Goal for
2025)
• Not available yet, but
intended for 2025
• Free textile drop off at
Ukiah Transfer Station

FR
C o m i n g i n 2 0 2 5 !
Route Audits (Lid Flipping) • SB1383 Requirement • Data will be provided to the jurisdiction for review
• Random Sampling of 10% of each route • Trash • Recycle • Organic Waste

FR
Personalized
Customer
Outreach
• Outreach Coordinator will reach out
to customers with contamination
issues
• Cameras in Hopper
• Tablet Notes & Photos
• Bilingual “Oops!” Cart Tagging
• Bilingual “Great Job!” Tagging

FR
T h e s e t r u c k s s e r v i c e c a r t s
Reminder: Split Body Collection Trucks
• There is a split down the middle that
separates the commodities
• Trash & Recycle are done on the route
first, then the driver does the entire
route over again to collect organic waste
• There is an educational video about
these on our Facebook page!
Inside A Split Body Truck Outside of A Split Body Truck

FR
Follow Us On Facebook!
Topics we post about:
• Service delays
• Fun sustainability facts
• Updates on different service offerings
• Job Opportunities
• You can message us with questions
• Stay up to date on community involvement
9

AGENDA ITEM 6a

CITY OF UKIAH

CITY COUNCIL MINUTES
Regular Meeting

CIVIC CENTER COUNCIL CHAMBERS
300 Seminary Avenue, Ukiah, CA 95482
Virtual Meeting Link: https://us06web.zoom.us/j/87167249956 Ukiah, CA 95482
October 16, 2024
5:15 p.m.

1. ROLL CALL
Ukiah City Council met at a Regular Meeting on October 16, 2024, having been legally noticed on October 11, 2024. The meeting was held in person and virtually at the following link:
https://us06web.zoom.us/j/87167249956. Vice Mayor Crane called the meeting to order at 5:15 p.m.

Roll was taken with the following Councilmembers Present: Juan V. Orozco, Susan Sher, and Douglas, F. Crane. Councilmembers Absent by Prearrangement: Mari Rodin and Josefina Dueñas. Staff Present: Sage Sangiacomo, City Manager; David Rapport, City Attorney; and Araceli Sandoval, Acting Clerk.

VICE MAYOR CRANE PRESIDING.

2. PLEDGE OF ALLEGIANCE
The Pledge of Allegiance was led by Vice Mayor Crane.

3. AB 2449 NOTIFICATIONS AND CONSIDERATIONS

4. PROCLAMATIONS/INTRODUCTIONS/PRESENTATIONS

5. PETITIONS AND COMMUNICATIONS
No announcements were made regarding Petitions and Communications; however, no communications had been received.

6. APPROVAL OF MINUTES
a. Approval of the Minutes for the October 2, 2024, Regular Meeting.

Motion/Second: Sher/Orozco to approve Minutes of October 2, 2024, a regular meeting, as submitted. Motion carried by the following roll call votes: AYES: Orozco, Sher, and Crane. NOES:

None. ABSENT: Rodin and Dueñas. ABSTAIN: None.

7. RIGHT TO APPEAL DECISION

8. CONSENT CALENDAR
a. Approve A Three-Year Contract (2425-124) Extension/Renewal for Mimecast Email Security Suite from CompuNet – Information Services.
b. Adoption of an Ordinance Amending the Official Zoning Map of the City of Ukiah from Residential – Planned Development (R-2: PD) to Medium Density Residential (R-2), as well as Approval of a Minor Subdivision Resulting in Two (2) Parcels at 960-979 Marlene Street; (APNs 003-100-24 - 003-100-437) – Community Development.

City Council Minutes for October 16, 2024, Continued:

ORDINANCE NO. 1248

AN UNCODIFIED ORDINANCE OF THE CITY COUNCIL AMENDING THE OFFICIAL

ZONING MAP BY REMOVING THE PLANNED DEVELOPMENT (PD) DESIGNATION AND REVERTING TO THE BASE MEDIUM DENSITY RESIDENTIAL (R2) DESIGNATION AT 960- 979 MARLENE STREET; (APNs 003-100-24 - 003-100-437)
c. Adoption of an Ordinance Amending and Adding Various Sections of the Ukiah City Code to More Effectively Regulate 'Missing Middle Housing' Consistent with the Land Use Element of the Ukiah 2040 General Plan – Community Development.

ORDINANCE NO. 1249

ORDINANCE OF THE CITY COUNCIL OF THE CITY OF UKIAH ADDING AND AMENDING VARIOUS SECTIONS OF THE UKIAH CITY CODE REGULATING ‘MISSING MIDDLE HOUSING’
d. Consideration of Approval of Reclassification of the Rate and Resource Analyst Position into a Job Series and the Unfreezing of the Assistant Electric Utility Director Position; and Approval of Corresponding Budget Amendment – Electric Utility.
e. Consideration of Approval of Minor Reorganization of Housing and Grants Management Divisions of the Community Development Department; and Approval of Corresponding Budget Amendment – Community Development.
f. Consideration of Adoption of Resolution (2024-43) Reappointing Alyssa Ballard to the Demolition Permit Review Committee – City Clerk.

Motion/Second: Sher/Orozco to approve Consent Calendar Items 8a-8f, as submitted. Motion carried by the following roll call votes: AYES: Orozco, Sher, and Crane NOES: None. ABSENT:

Rodin and Dueñas. ABSTAIN: None.

9. AUDIENCE COMMENTS ON NON-AGENDA ITEMS
Public Comment: Gregory Hubbs – New Businesses, Code Violations, Homeless Shelter.

10. COUNCIL REPORTS
No Council reports were received.

11. CITY MANAGER/CITY CLERK REPORTS
Presenters: Sage Sangiacomo, City Manager; and
• Construction and FEMA Flood Plain Updates – Andrew Stricklin, Senior Civil Engineer. • Palace Update – Shannon Riley, Deputy City Manager.

12. PUBLIC HEARINGS (6:15 PM)
a. Consider Adoption of a Resolution to Adopt an Initial Study and Mitigated Negative Declaration for the Construction of a 1.9-Mile Multimodal Trail Segment of the Great Redwood Trail - Ukiah (Phase 4).

Presenters: Katherine Schaefers, Planning Manager and Jesse Davis, Chief Planning Manager.

City Council Minutes for October 16, 2024, Continued:

A PowerPoint presentation was given.

PUBLIC HEARING OPENED AT 5:49 P.M.

No public comment was received.

PUBLIC HEARING CLOSED AT 5:50 P.M.

Motion/Second: Orozco/Sher to adopt the resolution (2024-44) adopting an Initial Study and Mitigated Negative Declaration for the construction of a 1.9-mile multimodal trail segment of the Great Redwood Trail (GRT) - Ukiah (Phase 4). Motion carried by the following roll call votes: AYES:

Orozco, Sher, and Crane. NOES: None. ABSENT: Rodin and Dueñas. ABSTAIN: None.

13. UNFINISHED BUSINESS
a. Council will Receive an Update on the Public Benefits Program, Consider Approving Revised Energy Efficiency Programs and Rebates, and Consider a Budget Amendment in the Amount of $30,000 for Energy Efficiency Rebates.

Presenters: Cindy Sauers, Electric Utility Director and Diann Lucchetti, Electric Utility Program Coordinator.

A PowerPoint presentation was given.

Motion/Second: Sher/Orozco to approve revised customer programs and rebates, and a budget amendment (1415-145-A9) in the amount of $30,000 for energy efficiency rebates. Motion carried by the following roll call votes: AYES: Orozco, Sher, and Crane. NOES: None.

ABSENT: Rodin and Dueñas. ABSTAIN: None.

14. NEW BUSINESS
a. Consider Adopting a Resolution Authorizing the Issuance of Tax and Revenue Revolving Notes.

Presenter: Dan Buffalo, Finance Director.

Motion/Second: Sher/Orozco to adopt a resolution (2024-45) that 1) authorizes the issuance and sale of the City of Ukiah 2024 Tax and Revenue Revolving Note in an aggregate principal amount not to exceed $10,000,000, to be sold through a direct bank placement; and 2) approves in substantially final form the Note Purchase Agreement (2425-125) and authorizes the Finance Director or other authorized officers to execute the Note Purchase Agreement with Umpqua Bank N.A., and other related documents as necessary in connection with the issuance of the 2024 Notes and authorizes other related actions. Motion carried by the following roll call votes: AYES: Orozco, Sher, and Crane. NOES: None. ABSENT: Rodin and Dueñas. ABSTAIN: None. b. 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).

Presenters: Councilmember Sher and Sage Sangiacomo, City Manager.

Motion/Second: Sher/Orozco to disband the TOT 3% Tax Measure Material Development Ad Hoc Committee and create a Tourism Advisory Ad Hoc consisting of Councilmembers Rodin and Sher.

Motion carried by the following roll call votes: AYES: Orozco, Sher, and Crane. NOES: None.

ABSENT: Rodin and Dueñas. ABSTAIN: None.

THE CITY COUNCIL ADJOURNED TO CLOSED SESSION AT 6:24 P.M.

City Council Minutes for October 16, 2024, Continued:

15. CLOSED SESSION
a. Conference with Legal Counsel – Anticipated Litigation (Government Code Section 54956.9(d)(4))
Initiation of litigation (4 cases)
b. Conference with Legal Council - Anticipated Litigation Government Code Section 54956.9(d)(2)
Significant exposure to litigation (1 case)
c. Conference with Legal Counsel – Existing Litigation
(Government Code Section 54956.9)
Name of case: Ukiah v. Questex, Mendocino County Superior Court Case No. 15-66036 d. Conference with Legal Counsel – Existing Litigation
(Government Code Section 54956.9(d)(1))
Name of case: Vichy Springs Resort v. City of Ukiah, Et Al; Case No. SCUK-CVPT-2018-70200 e. Conference with Legal Counsel – Existing Litigation
(Government Code Section 54956.9(d)(1))
Name of case: Russian River Keepers et al. v. City of Ukiah, Case No. SCUK-CVPT-20-74612 f. Conference with Real Property Negotiators
(Cal. Gov't Code Section 54956.8)
Property: APN Nos: 180-110-07
Negotiator: Shannon Riley, Deputy City Manager
Negotiating Parties: GMB Realty Partners, Inc.

Under Negotiation: Price & Terms of Payment
g. Conference with Real Property Negotiators
(Cal. Gov't Code Section 54956.8)
Property: APN Nos: 002-232-05 and 002-282-02
Negotiator: Sage Sangiacomo, City Manager
Negotiating Parties: Bartolomei Trustees
Under Negotiation: Price & Terms of Payment
h. Conference with Real Property Negotiators
(Cal. Gov’t Code Section 54956.8)
Property: APN No: 170-150-10-00
Negotiator: Sage Sangiacomo, City Manager
Negotiation Party: Twenty Years of Bliss LLC
Under Negotiation: Price & Terms of Payment
i. Conference with Labor Negotiator (54957.6)
Agency Representative: Sage Sangiacomo, City Manager
Employee Organizations: All Bargaining Units
No action reported; direction provided to Staff.

16. ADJOURNMENT
There being no further business, the meeting adjourned at 7:00 p.m. ________________________________
Araceli Sandoval, Acting Clerk

Agenda Item No: 8.a.

MEETING DATE/TIME: 11/6/2024

ITEM NO: 2024-745

AGENDA SUMMARY REPORT
SUBJECT: Authorize the City Manager to Negotiate and Execute a Lease Agreement with Federal Express (FedEx) to Lease a Hangar at the Airport.

DEPARTMENT: Airport PREPARED BY: Greg Owen, Airport Manager PRESENTER: Greg Owen, Airport Manager
ATTACHMENTS:

1. Draft Agreement
Summary: Council will consider authorizing the City Manager to negotiate and execute a lease agreement with Federal Express (FedEx) to lease a hangar at the airport.

Background: FedEx has been a long-term tenant at the Ukiah Airport, operating out of a hangar that was privately owned. The original lease agreement included a reversion clause, meaning that ownership of the hangar would eventually revert to the City of Ukiah. That reversion has now occurred. As a result, the City must establish a new lease agreement directly with FedEx to allow them to continue using the facility.

Discussion:

City Staff have been diligently working with FedEx corporate to establish a new lease agreement (Attachment 1) for their hangar facility at the Ukiah Airport. This new agreement provides significantly improved terms for the City and is expected to substantially increase airport revenue through updated rates that reflect current market values. FedEx is a vital tenant at the Ukiah Airport, conducting daily flights to and from the facility.

Their operations include a sort facility to manage cargo and a public counter to serve customers in the Ukiah area. This highlights the significance of securing a long-term lease agreement that supports their continued service to the community.

The Airport Commission has reviewed the proposed lease and recommends its approval. Currently, City Staff and the City Attorney are finalizing the remaining details with FedEx; the draft agreement in substantial form is included as Attachment #1.

This new lease agreement represents a positive outcome for the City of Ukiah. It secures the continued presence of FedEx at the airport while significantly enhancing airport revenue. This will contribute to the ongoing operational sustainability and potential future development of the Ukiah Airport.

Recommended Action: Authorize the City Manager to negotiate and execute a lease agreement with FedEx to a lease Hangar at the Airport.

BUDGET AMENDMENT REQUIRED: N/A
CURRENT BUDGET AMOUNT: N/A
PROPOSED BUDGET AMOUNT: N/A
FINANCING SOURCE: N/A

PREVIOUS CONTRACT/PURCHASE ORDER NO.: N/A
COORDINATED WITH: N/A
DIVERSITY-EQUITY INITIATIVES (DEI):N/A
CLIMATE INITIATIVES (CI):N/A
GENERAL PLAN ELEMENTS (GP): MOB-6.1The City shall ensure that the airport is a key part of the City's economic development.

Attachment 1
FedEx Internal Lease No. 24-0680-000
UKIAH

CITY OF UKIAH

AGREEMENT FOR LEASE

OF AIRPORT PROPERTY

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-iiPage 30 of 653
DRAFT
-iiiAGREEMENT FOR LEASE OF PROPERTY

UKIAH REGIONAL AIRPORT

TABLE OF CONTENTS
LEASE SUMMARY..........................................................................................................................................vi PREAMBLE......................................................................................................................................................1 ARTICLE 1 DEFINITIONS ........................................................................................................................ 2

1.01 AIRPORT ......................................................................................................................................................................2

1.02 AIRPORT MANAGER…………………………………………………………………………………………….....………….2

1.03 ANNIVERSARY DATE......................................................................................................................... 2

1.04 BASE RENT .................................................................................................................................... 2

1.05 CPI............................................................................................................................................... 2

1.06 CITY COUNCIL................................................................................................................................. 2

1.07 DOT ............................................................................................................................................. 2

1.08 FAA.............................................................................................................................................. 2

1.09 SIGN.............................................................................................................................................. 3

1.10 LEASED PREMISES ........................................................................................................................... 3

1.11 LEASE YEAR.................................................................................................................................... 3

1.12 TRADE FIXTURES............................................................................................................................. 3 ARTICLE 2 SPECIAL CONDITIONS......................................................................................................... 4

2.01 TERM............................................................................................................................................. 4 (a) Commencement........................................................................................................................ 4 (b) Extension of Initial Term........................................................................................................... 4 (C) USE OF THE WORD "TERM"................................................................................................................ 4 DESCRIPTION OF LEASED PREMISES ................................................................................................... 4

2.03 USE OF THE LEASED PREMISES.......................................................................................................... 5 (a) Permitted Use........................................................................................................................... 5 (b) Limitations ................................................................................................................................ 5

2.04 RENT............................................................................................................................................. 6 (a) Time and Manner of Payment.................................................................................................... 6 (b) Base Rent................................................................................................................................. 6 (c) CPI Rental Increases ................................................................................................................ 6

2.05 SECURITY DEPOSIT.......................................................................................................................... 7

2.06 ADDITIONAL FEES, CHARGES AND RENTALS......................................................................................... 7

2.07 LIQUIDATED DAMAGES FROM LATE PAYMENTS...................................................................................... 7

2.08 UTILITIES........................................................................................................................................ 8

2.09 MAINTENANCE OF LEASED PREMISES .................................................................................................. 8 (a) Responsibility of City................................................................................................................. 8

DRAFT
-iv-
(b) Responsibility of Lessee............................................................................................................ 8

2.10 IMPROVEMENTS OR ALTERATIONS ...................................................................................................... 9 (a) General .................................................................................................................................... 9 (b) Preliminary Plans...................................................................................................................... 9 (c) Review of and Comment on Preliminary Plans........................................................................... 9 (d) Final Plans................................................................................................................................ 9 (e) Approval of Final Plans ........................................................................................................... 10 (f) Modification of Final Plans....................................................................................................... 10 (g) Notice of Completion............................................................................................................... 10 (h) As-Constructed/Record Drawings............................................................................................ 10 (i) Removal of Unapproved Improvements ................................................................................... 10

2.11 INSURANCE................................................................................................................................... 11

2.12 TRASH AND GARBAGE………………………………………………………………………………………… 11

2.13 VEHICULAR AND EQUIPMENT PARKING…………………………………………………………………………11

2.14 NOTICES ...................................................................................................................................... 11 ARTICLE 3 GENERAL CONDITIONS..................................................................................................... 13

3.01 ACCEPTANCE OF LEASED PREMISES ................................................................................................. 13

3.02 ACCORD AND SATISFACTION............................................................................................................ 13

3.03 AIRPORT REGULATIONS .................................................................................................................. 13

3.04 AMENDMENT REQUIRED BY FAA...................................................................................................... 13

3.05 ASSIGNMENT AND SUBLETTING ........................................................................................................ 13 (a) Assignment............................................................................................................................. 13 (b) Subletting ............................................................................................................................... 13

3.06 AUTHORITY OF AGREEMENT ............................................................................................................ 14

3.07 AUTHORITY OF THE AIRPORT MANAGER ............................................................................................ 14

3.08 CALIFORNIA LAW ........................................................................................................................... 14

3.09 CITY'S REMEDIES .......................................................................................................................... 14

3.10 CUMULATIVE REMEDIES.................................................................................................................. 15

3.11 DAMAGE OR DESTRUCTION OF IMPROVEMENTS .................................................................................. 15 (a) Definitions............................................................................................................................... 16 (b) Repair Obligations and Rights of Termination........................................................................... 16 (c) Limitation on City's Obligations ................................................................................................ 16 (d) The Payment of Rental............................................................................................................ 17

3.12 EARLY TERMINATION BY CITY .......................................................................................................... 17

3.13 EARLY TERMINATION BY LESSEE...................................................................................................... 17

3.14 EXECUTION BY CITY COUNCIL.......................................................................................................... 18

3.15 FORCE MAJEURE........................................................................................................................... 18

3.16 HEADINGS .......................................................................................................................................18

3.17 HOLDING OVER ............................................................................................................................. 18

3.18 INDEMNIFICATION OF CITY ............................................................................................................... 18

3.19 INTERPRETATION OF AGREEMENT..................................................................................................... 19

DRAFT
-v3.20 INVALID PROVISIONS ...................................................................................................................... 19

3.21 LICENSES AND PERMITS.................................................................................................................. 19

3.22 NATIONAL POLLUTANT DISCHARGE ELIMINATION SYSTEM..................................................................... 19

3.23 NEGATION OF PARTNERSHIP............................................................................................................ 19

3.24 NET LEASE ................................................................................................................................... 19

3.25 NOISE CONTROL............................................................................................................................ 19

3.26 NONDISCRIMINATION ...................................................................................................................... 20

3.27 NONEXCLUSIVE RIGHTS.................................................................................................................. 20

3.28 NONWAIVER OF RIGHTS.................................................................................................................. 20

3.29 NOTICE OF CLAIMS AND SUIT........................................................................................................... 20

3.30 NO WARRANTY RE AIRPORT ............................................................................................................ 21

3.31 NUISANCE AND WASTE ................................................................................................................... 21

3.32 PROHIBITION OF LIENS.................................................................................................................... 21

3.33 REMOVAL OF LESSEE'S PROPERTY................................................................................................... 21

3.34 REPORTS ..................................................................................................................................... 21

3.35 RESTRICTIONS AND REGULATIONS.................................................................................................... 21

3.36 RIGHT OF ENTRY ........................................................................................................................... 21

3.37 RISK REDUCTION........................................................................................................................... 22

3.38 SIGNS.......................................................................................................................................... 22

3.39 SUBORDINATION ............................................................................................................................ 22

3.40 SUCCESSORS AND ASSIGNS ............................................................................................................ 22

3.41 SURRENDER OF LEASED PREMISES.................................................................................................. 22

3.42 TAXES ......................................................................................................................................... 23

3.43 TIME OF THE ESSENCE ................................................................................................................... 23

3.44 VEHICULAR AND EQUIPMENT PARKING .............................................................................................. 23

3.45 ENTIRE AGREEMENT…………………………………………………………………………….……………..23

3.46 COUNTERPARTS AND ELECTRONIC SIGNATURE................................................................................... 23 EXHIBITS:

A. Leased Premises (1329 S. State St Ukiah, CA 95482)
B. Insurance requirements
C. FAA Assurances

DRAFT
-viUKIAH REGIONAL AIRPORT
Lease Summary
Type of Agreement LEASE OF 1329 S. State St Ukiah, Ca UKIAH AIRPORT Lessor City of Ukiah
Lessee
Representative
Phone
Notice Address Lessee Lessor
Federal Express Corporation
Attn: Manager, Airport Relations &
Development (#24-0680)
3680 Hacks Cross Road, Bldg. H
Memphis, Tennessee 38125
With a copy to:

Federal Express Corporation
Attn: Managing Director, Real
Estate Transactions (#24-0680)
3620 Hacks Cross Road, Bldg. B
Memphis, Tennessee 38125
(Reference Section 2.14)
Initial Term 5 years commencing on Effective Date of Agreement Expiration The last day of the 60 full calendar months following the Effective Date Leased Premises 13,400 building @ .036$ per sq ft
55,400 aircraft parking ramp and vehicle parking @ .06$ per sq ft Rent Lease Year 1: $8,148 per month rent
Rent Increases CPI adjustments annually July 1. (Reference 2.04 (c)) Security Deposit Waived
Utilities Lessee Responsibility. (Reference Section 2.08) Maintenance All performed by lessee. (Reference Section 2.09) Other Fees Reference Sections 2.04 - 2.09, 2.12, 3.05, 3.11, 3.13, 3.14, 3.20, 3.22, 3.27, Authorized Use(s) Cargo transport and distribution operation (ref. Section 2.03) City of Ukiah
1403 South State St
Ukiah, CA 95482

DRAFT
-viiMinimum Insurance Per Exhibit B, summarized as:

General Aggregate: $2,000,000
Products Comp/Op Aggregate: $1,000,000
Personal & Adv. Injury: $1,000,000
Each Occurrence: $1,000,000
Fire Damage: $ 1,000,000
Automobile Liability: $1,000,000
Workers’ Compensation: Statutory
Employer’s Liability: $1,000,000 per accident for bodily injury or disease Note: This Lease Summary is presented as a reference of the Lease information at the time of execution. If there is a discrepancy between the information contained in this Lease Summary and the requirements contained in the remainder of this Lease, the requirements as stated in the remainder of this Lease will be applied.

Tenant City of Ukiah Municipal Airport
Agreement for Lease of Property Page 1 of 25
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AGREEMENT FOR LEASE OF PROPERTY

UKIAH REGIONAL AIRPORT
THIS AGREEMENT is entered into as of, but not necessarily on, July 1, 2024 (“Effective Date”), by and between the CITY OF UKIAH, a general law Municipal Corporation, hereafter “City,” and Federal Express Corporation, organized under and in compliance with the laws of the State of Delaware, and authorized to conduct business in the State of California, hereafter “Lessee.”
RECITALS:

1. City operates and maintains the Ukiah Regional Airport, (hereafter “Airport”), located in the City of Ukiah, California, and has the right to lease portions of such Airport, subject to the terms and conditions hereafter set forth.

Lessee is a company engaged in the business of operating an air cargo sort and distribution facility and activities and services related to such use as more particularly described in Section 2.03 hereafter.

2. Lessee desires to lease Airport property from the City for use in conducting Lessee’s operations at the Airport.

4. City is willing to lease property to Lessee on the terms and conditions set forth in this Lease.

AGREEMENT:

City and Lessee hereby agree as follows.

Tenant City of Ukiah Municipal Airport
Agreement for Lease of Property Page 2 of 25
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Article 1
Definitions
As used herein, the following words and phrases shall have the meanings set forth below:

1.01 Airport
"Airport" means the Ukiah Regional Airport operated by the City as a public airport.

1.02 Airport Manager
“Airport Manager” means the City employee who manages the day-to-day operation of the Airport and who has the authority and responsibilities contained in Division 6, Chapter 1, Article 1 of the Ukiah City Code, commencing with Section 5000. Whenever in this agreement reference is made to the Airport Manager, that reference may include any other officer or employee of the City, including the City Council or the City Manager, if the approval of that other officer or employee is required by the laws and rules applicable to the City.

1.03 Anniversary Date
"Anniversary Date" means the day and month of the Effective Date in each year following the year, when this lease was first entered by the parties.

1.04 Base Rent
"Base Rent" means rent specified in Section 2.04(b) of this Lease.

1.05 CPI
"CPI" means the Consumer Price Index published by the United States farm of Labor Statistics, for all commodities for all urban consumers in the All U.S. Cities Average Index (index base 1982-84=100).

1.06 City Council
“City Council” means the legislative body of the City as established in Title 4, Division 3, Part 2 of the California Government Code, with the authority to lease City property, including property at the Airport.

1.07 DOT
"DOT" means the United States Department of Transportation, and any federal agency succeeding to its jurisdiction.

1.08 FAA
"FAA" means the Federal Aviation Administration of the United States government, and any federal agency succeeding to its jurisdiction.

Tenant City of Ukiah Municipal Airport
Agreement for Lease of Property Page 3 of 25
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1.09 Sign
"Sign" shall have the meaning set forth in Section 3.38.

1.10 Leased Premises
"Leased Premises" means those certain premises leased to Lessee pursuant to this Lease, which premises is more particularly described by Section 2.02 and the attached Exhibit A.

1.11 Lease Year
"Lease Year" means a period of twelve (12) consecutive calendar months, starting on the Effective Date (“Commencement Date”) and ending on the next ensuing June 30 and also means each successive twelve (12) calendar month period during the term thereafter

1.12 Trade Fixtures/ Lessee’s Fixtures
"Trade fixtures" shall mean, but shall not be limited to: any signs (electrical or otherwise) used to identify Lessee's business; all machinery and equipment used in connection with Lessee's required or permitted activities pursuant to this Agreement, whether or not such machinery or equipment is bolted or otherwise attached to the Leased Premises; and all other miscellaneous office equipment, furnishings, and personal property of the Lessee.

Tenant City of Ukiah Municipal Airport
Agreement for Lease of Property Page 4 of 25
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Article 2
Special Conditions

2.01 Term
(a) Commencement
The term of this Agreement shall be for 5 Lease Years (the “Initial Term”), commencing on the Commencement Date and terminating on June 30, 2029 (the “Expiration Date”).
(b) Extension of Initial Term
Lessee may request an extension of the Initial Term and the parties shall negotiate an Extended Term in good faith. Any Extended Term must be evidenced by a written amendment of this Agreement approved by each party and signed by their authorized representatives. If Lessee desires to extend the Initial Term, Lessee shall provide written notice to Lessor not less than six (6) months prior to the Expiration Date stating Lessee’s intent to enter into negotiations with Lessor for the Extended Term.

(c) Use of the Word "term"
Whenever the word "term" is used hereafter in this Agreement and the context evidences that it is used in reference to the term of this Agreement, it shall mean the Initial Term and include any Extended Terms to which the parties have agreed.

2.02 Description of Leased Premises
City hereby Leases to Lessee the following premises at Airport more particularly described below and shown on Exhibit A (“Leased Premises”), attached hereto and incorporated herein by this reference:

The real property and improvements located at 1329 S. State St Ukiah, CA 95482 containing 13,400 sq ft building and 55,400 sq ft aircraft parking ramp and vehicle parking for a total leased land area of 68,800 sq ft
Lessee accepts the Leased Premises as specified herein and such area shall not be subject to recalculation. Except as provided herein, the Leased Premises are leased in their current “as is” physical condition and without any expressed or implied representations or warranties of any kind whatsoever with respect to such condition of the Leased Premises.

Tenant City of Ukiah Municipal Airport
Agreement for Lease of Property Page 5 of 25
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2.03 Use of the Leased Premises
(a) Permitted Use
Subject to the limitations set forth in Section 2.03(b), and elsewhere in this Agreement, Lessee may use the Leased Premises at all times throughout the term for any or all of the following purposes, but for no other purposes:

City authorizes Lessee to use the Leased Premises only for lawful purposes related to Lessee’s cargo business operations including, but not limited to, the storage, sorting and distribution of cargo, performance of vehicle maintenance and vehicle washing activities, and the storage of vans inside the building located on the Leased Premises as well as related office uses and operation of a customer service interface..

Lessee, its employees, agents, guests, invitees, suppliers of material and furnishers of services shall have full rights of ingress and egress with respect to the following areas: 1) common use areas of the Airport; 2) the Leased Premises.

Lessee's use of the Leased Premises shall be in accordance with the laws of the federal government and State of California, the ordinances, rules and regulations of the City of Ukiah, the regulations of the FAA, the DOT, and the applicable requirements of any other governmental agency with jurisdiction over the Airport or Lessee’s operations at the Airport. Lessee shall not engage in any operations at Airport prior to obtaining any certification that may be required by the FAA. Lessee shall furnish the Airport Manager a copy of any such certificates, upon request. (b) Limitations
Lessee shall use the Leased Premises in accordance with the following limitations and all other applicable terms, promises, conditions, and covenants contained herein.

1. Except as specifically authorized in subsection (a) of this Section 2.03, Lessee shall not:
a. engage in any commercial or noncommercial aeronautical or non-aeronautical activity at Airport other than as provided in Section (a), including the sale of fuel, oil, or any other petroleum product, without first complying with the Commercial Operating Standards – Ukiah Airport and obtaining the required permits or agreements from City; and
b. install or operate coin-operated food or drink dispensing machines or devices, other than such machines or devices that are provided by Lessee for the exclusive use of Lessee’s employees, unless approved in writing by the Airport Manager. c. install pay telephones. City specifically reserves the right to arrange for the installation of such pay telephones as Lessee may desire and to secure the income from such installations unless approved in writing by the Airport Manager. d. sell prepaid telephone cards or lottery tickets unless approved in writing by the Airport Manager.

Tenant City of Ukiah Municipal Airport
Agreement for Lease of Property Page 6 of 25
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e. sell any goods or service not approved in writing by the Airport Manager, including, but not limited to, threatening devices or weapons. f. solicit or advertise goods which are not authorized by the Airport Manager under this Agreement.
g. allow any sale by auction on the Leased Premises, without the prior consent of the Airport Manager.
h. use or allow the Leased Premises to be used for any improper, immoral, or unlawful purpose.
i. obstruct the sidewalks, roadways or passageways adjacent to the Leased Premises.

2.04 Rent
Lessee shall pay rent to City as follows:
(a) Time and Manner of Payment
Lessee shall pay all rent in advance, in equal monthly installments, at City's accounting office, at the address shown for City under Section 2. herein, on the first day of each calendar month throughout the term of this Agreement. Each such monthly installment shall be in an amount equal to one-twelfth (1/12th) of the rent payable for the Lease Year then in effect. Rent for partial months shall be pro-rated on a monthly basis, based on a 12 month year.

Calculation of rent herein, on the basis of amounts payable per Lease Year, is for purposes of convenience only, and shall not be construed as affecting Lessee's obligation to pay City rent for the entire term hereof. (b) Base Rent
Effective as of the Commencement Date. Lessee shall pay Base Rent in the total amount of $8,148 per month. Base Rent has been calculated based on the following rates:
(i) 13,400 building @ .036$ per sq ft
55,400 aircraft parking ramp and vehicle parking @ .06$ per sq ft; The parties acknowledge that Lessee has occupied the Leased Premises since the Effective Date and that there may be a deficiency (“Deficiency”) in the Base Rent amount paid by Lessee for July 2024 and any month thereafter until such time as both parties have executed this Lease. If there is a Deficiency, Lessee shall pay the amount of that Deficiency within thirty (30) days after Lessee’s receipt of Lessor’s reconciliation statement showing the Base Rent paid by Lessee and the amount of the Deficiency.
(c) CPI Rental Increases
Lessee shall pay rental increases, calculated as follows:

Tenant City of Ukiah Municipal Airport
Agreement for Lease of Property Page 7 of 25
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(i) Effective on the July 1st of each Lease Year Lessee shall pay Base Rent based on the just completed Lease Year's Base Rent amount plus an additional amount calculated as follows:

The just completed Lease Year's Base Rent shall be multiplied by the same percentage as the percentage increase, if any, in the current CPI, prior to any seasonal adjustment, as compared to the same month in the preceding year (e.g. July 2008 level of 219.964 (1982-84=100) is 5.6% higher than in July 2007).

Lessee shall pay, as Base Rent for the next ensuing Lease Year, a sum equal to the product thereof, to the extent that such sum does not exceed 3 percent (3%) of the total Base Rent payable by Lessee for the immediately preceding Lease Year.
(ii) Any decrease in the CPI shall not result in any decrease in Lessee's rental obligation herein.

2.05 Security Deposit
Intentionally deleted.

2.06 Additional Fees, Charges and Rentals
Lessee shall pay to City additional fees, charges and rentals in the event of any of the following:
(a) If City has paid any sum or sums, or has incurred any obligation or expense, for which Lessee has agreed to pay or reimburse City or for which Lessee is otherwise responsible under the terms of this Lease, Lessee will be notified in writing of the cost and nature of the obligation or expense for which City seeks reimbursement and shall, within thirty (30) days after receipt of such notice, remit full reimbursement for such obligation or expense to City for which Lessee is responsible.

Lessee's obligations pursuant to this Section 2.0 shall include all interest, cost, damages, and penalties in conjunction with such sums so paid or expenses so incurred by City, which may be added by City to any installment of fees, charges, and rents payable herein.

Each and every part of such payment by City and for which Lessee is responsible under the terms of this Lease shall be recoverable by City in the same manner and with like remedies as expressly set forth in this Lease.

2.07 Liquidated Damages from Late Payments
If Lessee is in arrears for more than three (3) days after the due date with respect to any payment due to City from Lessee under this Lease and if Lessee fails to cure such arrearage within ten (10) days following receipt of City’s notice of the arrearage, the parties acknowledge that additional clerical, accounting and other work will be performed which would not otherwise be needed absent the late payment. In addition, because the actual charges as a result of the late payment are difficult to identify, the parties hereby agree that Lessee shall pay, as a reasonable charge, liquidated damages for the late payment in the amount of twelve percent (12%) annual percentage rate or twenty-five dollars ($25.00), whichever is greater,

Tenant City of Ukiah Municipal Airport
Agreement for Lease of Property Page 8 of 25
DRAFT
applicable from the date such payment was due to the date of actual payment. If the maximum charge permitted by law is less than the foregoing amount, then the rate shall be such amount determined to be the maximum legal amount.

2.08 Utilities
Lessee, at Lessee's sole cost and expense, shall make its own arrangements and pay for all charges assessed for any and all of its utilities, including, but not limited to, electrical power, natural gas, water, sanitary sewer, trash/garbage collection and disposal, telephone and communication services, and for any other utility service or other service supplied to or used on the Leased Premises, including any and all connection and metering charges, as billed directly to Lessee by the City of Ukiah utilities departments or any other utility companies furnishing such services. Where multiple rental units are supplied a utility service through a master meter for which the Airport or the City is billed, Lessee shall pay such costs and charges based upon such standard Airport rates and charges as may be established from time to time by City, and meter readings, if any, for amounts used by Lessee, within thirty (30) days following the date of such billing. Lessee agrees that any and all such charges for any and all such services shall be paid before they become delinquent and that City shall be protected and held harmless by Lessee from any expense or payment, arising from Lessee’s failure to make a timely payment for such services. Unless due to the negligence or willful misconduct of City, City shall not be liable to Lessee for any interruption in or curtailment of any utility service, nor shall any such interruption or curtailment constitute a constructive eviction or grounds for rental abatement in whole or in part.

2.09 Maintenance of Leased Premises
(a) Responsibility of City
No maintenance of the Leased Premises
(b) Responsibility of Lessee
Lessee is responsible for all maintenance of the Leased Premises.

Lessee shall be solely responsible for the cost of any repair or maintenance to the Leased Premises resulting from the negligent acts or omissions of Lessee, its officers, agents, employees, invitees, suppliers, or contractors. If Lessee fails to perform such maintenance or repair within thirty (30) days after receipt of City’s notice of the need therefor (or such longer period as is reasonably required given the nature of the maintenance or repair), then City may elect to perform such repair or maintenance itself, at Lessee’s sole cost and expense, and Lessee shall reimburse City for the cost of such maintenance or repair within thirty (30) days after receipt of City’s invoice therefor, together with reasonable supporting documentation of the costs incurred by City in performing such maintenance or repair;; provided, however, if such repair or maintenance is of an emergency nature, as determined by the Airport Manager in his sole but reasonable discretion, then City may, upon five (5) days advance written notice to Lessee, undertake performance of such maintenance or repair if Lessee fails to commence such maintenance or repair within said 5-day notice period and to thereafter continuously and diligently prosecute such maintenance or repair to completion.

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Lessee agrees to take good care of the Leased Premises and to return the same at the termination of this Agreement in as good order and condition as when received, excepting ordinary wear and tear and natural decay and any damage or destruction of the Leased Premises due to fire or other casualty which results in termination of this Lease pursuant to the provisions of Section 3.11 of this Lease.

2.10 Improvements or Alterations
(a) General
No improvements or alterations of any kind shall be erected, placed, assembled, constructed or permitted on the Leased Premises except for nonstructural improvements or alterations that cost not more than fifty thousand dollars ($50,000.00) unless Lessee shall have first obtained written authorization from the Airport Manager.

In the sole opinion of the Airport Manager, if the proposed improvement or alteration project is of a minor nature, the project may be reviewed and approved solely by the Airport Manager. The Airport Manager, at his sole discretion, based on the nature of the proposed improvement or alteration project may waive one or more of the procedures as set forth in Section 2.11 herein. Notice of such waiver shall be in writing. In the absence of such written waiver, Lessee must follow the procedures as set forth in Section 2.11 herein.
(b) Preliminary Plans
Prior to the preparation of preliminary plans, Lessee shall contact the Airport Manager to schedule a pre-project meeting to brief City staff on the proposed improvement. Preliminary plans shall show the full extent of the improvements to be constructed including grading, drainage, landscaping, paving, structural details and utility locations and the relationship of the proposed improvements to all adjacent Airport parcels, public roadways, service roadways, taxiways and aircraft parking aprons. A minimum of three (3) full sets of preliminary plans shall be submitted for approval. Civil engineering plans shall include plan drawings submitted on a scale not smaller than one (1) inch equals fifty (50) feet. Architectural plans shall include plan drawings at a suitable scale but in no case shall the scale be smaller than 1/16 inch equals one (1) foot. Plans shall include complete specifications in sufficient detail for City to determine compatibility with City objectives for the overall aesthetic character and quality of the improvements, including the proposed exterior color, scheme, style, materials, wording and placement of all signs.
(c) Review of and Comment on Preliminary Plans
Within thirty (30) days of the date of receipt of the preliminary plans, City will return two sets of plans with comments. City review and comment on the preliminary plans does not mean or infer that the proposed improvement has been approved by City. Additional plans, specifications or design features beyond those submitted with the preliminary plans may be required and shall be prepared by Lessee at the request of City.
(d) Final Plans
A minimum of three (3) copies of final plans and specifications showing responses to comments received and setting forth in all necessary detail the

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requirements for construction of the project shall be submitted to City for approval prior to submitting plans to other applicable agencies so that City may check them for design conformance with the preliminary plans.
(e) Approval of Final Plans
Within thirty (30) days of the date of receipt of the final plans, if final plans are approved, City will return final plans to Lessee with City approval stamp on the plans.

City will retain one full set of final plans. City approval of the final plans shall only mean that the proposed improvement is consistent with City's goals and objectives for Airport development projects and does not infer that the proposed improvement is approved by the City officials, boards or commissions with regulatory jurisdiction over the project, such as the Building Official, Zoning Administrator, City Engineer, Planning Commission, Traffic Engineering Committee, City Council (“City Regulators”). After approval of the final plans by City, Lessee has full responsibility for obtaining all required federal, State and local approvals and permits including compliance with California Environmental Quality Act (CEQA) requirements. (f) Modification of Final Plans
Any modifications to the approved final plans including environmental mitigation measures, modifications imposed by City officials, commissions or boards with regulatory jurisdiction over the project, or construction change orders shall be submitted to City for approval prior to construction.
(g) Notice of Completion
Within ten (10) days of construction completion, Lessee shall submit a Notice of Completion to City. Within ten (10) days of receipt of Notice of Completion, City may schedule an inspection of the improvements to be accompanied by Lessee for purposes of confirming compliance with the final plans and any subsequent modifications to the final plans. This inspection tour may be scheduled at the same time Lessee schedules a final inspection in accordance with any requirements imposed by the City Regulators.
(h) As-Constructed/Record Drawings
Within sixty (60) days after filing the Notice of Completion, Lessee shall furnish to City one (1) set of original reproducible record drawings showing the “as-constructed” improvements.
(i) Removal of Unapproved Improvements
Improvements made on the Leased Premises without the approval of final plans for said improvements as outlined herein are hereby determined to be unapproved improvements constructed or installed in violation of the conditions, restrictions and requirements of this Agreement. Unapproved improvements shall be immediately removed at Lessee's sole expense. Portions of improvements that are not constructed as indicated and specified on approved plans are also hereby determined to be unapproved improvements and shall be immediately removed or corrected at Lessee's sole expense.

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2.11 Insurance
(a) Throughout the term of this Agreement, Lessee for itself and its officers, representatives, agents, employees, guests, patrons, contractors, subcontractors, licensees, invitees, and suppliers shall maintain in full force and effect the forms of insurance specified in Exhibit B.

2.12 Trash and Garbage
Lessee shall be responsible for all trash and garbage cost and removal.

2.13 Vehicular and Equipment Parking
Vehicular and equipment parking by Lessee, its employees, agents, suppliers, subcontractors, customers, guests or invitees shall be restricted to Lessee's Leased Premises.

Parking in areas other than the Leased Premises shall be subject such regulations or restrictions as apply to the general public, including the payment of such parking fees and charges as may from time to time be in effect for designated areas.

2.14 Notices
(a) Notices required herein shall be in writing and served personally, sent by overnight courier, such as UPS or Federal Express, United States Postal Service Mail via certified mail and with return receipt requested and postage prepaid. Any notice mailed pursuant to this Section 2.14(a), shall be deemed received by the addressee upon delivery (or the date on which delivery is refused), as evidenced by the electronic delivery database of the overnight courier or by the date on the return receipt (if sent by United States Postal Service). Either part shall have the right, by giving not less than ten (10 days’ prior written notice to the other, to change the addressee or address at which its notices are to be received. Until any such change is made, notices shall be addressed and delivered as follows:

Lessee:

Federal Express Corporation
Attn: Manager, Airport Relations &
Development (#24-0680)
3680 Hacks Cross Road, Bldg. H
Memphis, Tennessee 38125
With a copy to:

Federal Express Corporation
Attn: Managing Director, Real
Estate Transactions (#24-0680)
3620 Hacks Cross Road, Bldg. B
Memphis, Tennessee 38125

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(b) All notices shall be effective as set forth in Section 2.14(a) and shall be deemed received upon delivery, if personally delivered to the addressee at the addresses stated in said Section 2.14(a).
(c) The person and address provided pursuant to Section 2.14(a) shall be deemed each party’s agent for service of process, unless the party provides a separate written notice of its agent for service of process, including the agent’s street address.

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Article 3
General Conditions

3.01 Acceptance of Leased Premises
Lessee hereby accepts the Leased Premises in its "as-is" physical condition existing on the Commencement Date. Taking possession of the Leased Premises by Lessee shall be conclusive evidence that the condition thereof is satisfactory to Lessee. City makes no representation or warranty that the Leased Premises are suitable for the uses to which Lessee shall be restricted pursuant to this Agreement except that all Systems shall be in good working order upon acceptance.

3.02 Accord and Satisfaction
No payment by Lessee or receipt by City of a lesser amount than the rent, fees and/or charges due to be made by Lessee herein shall be deemed to be other than on account of the rent, fees and/or charges due, and no endorsement or statement on any check or in any letter accompanying any check or payment as rent, fees and/or charges shall be deemed an accord and satisfaction, and City may accept such check or payment without prejudice to City's right to recover the balance of such rent, fees and/or charges or to pursue any other remedy provided in this Agreement.

3.03 Airport Regulations
In the use of the Leased Premises, Lessee agrees to observe, obey and abide by all ordinances, airfield rules and other regulations of City applicable thereto. In addition to the foregoing, Lessee shall comply promptly with all directives issued by the Airport Manager.

3.04 Amendment Required by FAA
This Agreement may be amended without further consideration for the purpose of satisfying FAA requirements.

3.05 Assignment and Subletting
(a) Assignment
Lessee shall have no right to assign, mortgage, and pledge or otherwise transfer this Agreement, either voluntarily or by operation of law, in whole or in part, without the prior written consent of the City in each instance. (b) Subletting
Lessee shall have no right to sublease all or any part of the Leased Premises without the prior written consent of City, consent will not be unreasonably withheld.

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3.06 Authority of Agreement
Lessee warrants and represents that it has the right, power, and legal capacity to enter into, and perform its obligations under this Agreement, without any additional approvals or consents. The execution, delivery, and performance of this Agreement by the undersigned Lessee representatives have been duly authorized by all necessary corporate action of Lessee, and this Agreement will constitute a legal, valid, and binding obligation of Lessee, enforceable in accordance with its terms.

3.07 Authority of the Airport Manager
The Airport Manager shall administer this Agreement on behalf of City. The Airport Manager shall represent the City and communicate with the Lessee on behalf of the City. The laws and rules applicable to the City will determine which City official or employee has the authority to make any decision on behalf of the City.

Any appeals of these policies can be taken to the Airport Commission for review and recommendation to the City Council.

3.08 California Law
This Agreement shall be interpreted and enforced in accordance with the laws of the State of California. In the event of a dispute between the parties as to the language of this Agreement or the construction or meaning of any term hereof, this Agreement shall be deemed to have been drafted by the parties in equal parts so that no presumption or inferences concerning its terms or interpretation may be construed against any party to this Agreement.

Any litigation filed by Lessee or City against the other regarding the terms of this Agreement, performance of a party's obligations under this Agreement, or any other reason related in any way to this Agreement, shall be filed in the California state courts in Ukiah, California, and the appropriate California courts of appeal or in federal court in the California district serving Ukiah, California. Each party consents to the jurisdiction of such courts and agrees to venue in or closest to Ukiah, expect as apply to FAA or federal issues.

The prevailing party in any final, unappealable action to interpret or enforce this Agreement shall be entitled to recover its attorneys’ fees and other costs of the litigation from the other party. If the non-prevailing party fails to timely file an appeal to which it is otherwise entitled, the latest verdict in such action shall be deemed final and unappealable.

3.09 City's Remedies
Pursuant to Section 1951.2 of the California Civil Code:
(a) In the event that Lessee breaches this Agreement and abandons the property before the end of the then-current term hereof, or if Lessee's right to possession is terminated by City because of Lessee’s breach of this Agreement that continues beyond Lessee’s receipt of proper notice and expiration of all cure periods applicable thereto, this Agreement terminates. Upon such termination, the City may recover from Lessee:
(i) The "worth at the time of award" of the unpaid rent which had been earned at the time of termination.

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(ii) The "worth at the time of award" of the amount by which the unpaid rent which would have been earned after termination until the time of award exceeds the amount of such rental loss that Lessee proves could have been reasonably avoided.
(iii) The "worth at the time of award" of the amount by which the unpaid rent for the balance of the then applicable Term hereof after the time of award exceeds the amount of such rental loss that Lessee proves could reasonably be avoided; and
(iv) Any other amount necessary to compensate City for all the detriment proximately caused by Lessee's failure to perform its obligations under this Agreement, or which in the ordinary course of things would be likely to result there from.
(b) The "worth at the time of award" of the amounts referred to in Subsections (a)(i) and (ii) of this Section 3. is computed by allowing interest at the rate of eighteen percent (18%). The "worth at the time of award" of the amount referred to in Subsection (a)(iii) of this Section 3. is computed by discounting such amount at the discount rate of the Federal Reserve Bank of San Francisco at the time of award plus one percent (1%).
(c) Damages which City may recover pursuant to Subsection (a)(iii) of this Section 3. include the worth at the time of award of the amount by which the unpaid rent for the balance of the term hereof exceeds the amount of such rental loss for the same period that Lessee proves could be reasonably avoided; or City may recover damages pursuant to Subsection (a)(iii) of this Section 3. in the event that City re-rents the Leased Premises prior to the time of award and proves that in reletting the property it acted reasonably and in a good-faith effort to mitigate the damages. (d) Efforts by City to mitigate the damages caused by Lessee's breach of this Agreement do not waive City's right to recover damages pursuant to said Section 1951.2 and this Section 3.
(e) Nothing in this Section 3. affects the right of City under this Agreement to indemnification for liability arising prior to the termination of this Agreement for personal injuries or property damage, as herein provided.

Notwithstanding the foregoing, in the event of Lessee's breach of this Agreement and abandonment of the Leased Premises, pursuant to Section 1951.4 of the California Civil Code, City may, at its sole option, elect to continue this Agreement and enforce all its rights and remedies herein against Lessee, including the right to recover the rent as it becomes due.

3.10 Cumulative Remedies
No remedy or election herein shall be deemed exclusive but shall, wherever possible, be cumulative with all other remedies at law or in equity.

3.11 Damage or Destruction of Improvements
In the event that any or all of the improvements located in or on the Leased Premises shall suffer partial or substantial destruction at any time during the term of this Agreement, the respective rights and obligations of the parties hereto with respect to reconstruction, repairing, and/or restoring such improvements and/or with respect to the matter of the continuance or

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termination of this Agreement following any such destruction shall be controlled by the provisions of this Section 3.11.
(a) Definitions
For the purpose of this Agreement, the following definitions shall apply: 1) the term "Partial Destruction" as used herein, shall be deemed to mean a destruction of improvements to such an extent that the then currently estimated total costs of restoring the destroyed improvements to as good a condition of habitability and/or usability (for those certain uses herein authorized and intended therefor) as existed immediately prior to the occurrence of any such destruction shall not exceed fifteen percent (15%) of the then current estimated total replacement costs of all of the improvements on the Leased Premises (excluding land and personal property). 2) the term "Substantial Destruction" as used herein, shall be deemed to mean a destruction of improvements to such an extent that the then current estimated total costs of restoring the destroyed improvements to as good a condition of habitability and/or usability (for those certain uses herein authorized and intended therefor) as existed immediately prior to the occurrence of any such destruction shall exceed fifteen percent (15%) of the then current estimated total replacement costs of all of the improvements on the Leased Premises (excluding land and personal property). (b) Repair Obligations and Rights of Termination
In the event the City-owned improvements located in or on the Leased Premises shall suffer Partial or Substantial Destruction at any time during the term hereof, then:
(I) City may, but shall not be obligated to so perform, the reconstruction, repair, and/or restoration of such improvements.
(ii) If the destruction is substantial, either party may cancel and terminate this Agreement as of the date of the occurrence of such destruction by giving written notice to the other party within sixty (60) days after such destruction. (iii) If, within sixty (60) days after the date of any partial destruction, City has not completed the reconstruction, repair, and/or restoration of the destroyed improvements, then, at any time prior to the completion of such reconstruction, repair and/or restoration by City, Lessee may cancel and terminate this Agreement by service of a minimum of thirty (30) days advance written notice upon City.
(iv) If within sixty (60) days after the date of any substantial destruction, City has not commenced the reconstruction, repair or restoration of the destroyed improvements or, if such action has been commenced during said period but the Leased Premises shall not have been fully reconstructed, repaired or restored to a tenantable condition within one hundred twenty (120) days following the date of such Substantial Destruction, then, at any time prior to the completion of such reconstruction, repair or restoration by City, Lessee may cancel and terminate this Agreement by service of a minimum of thirty (30) days advance written notice upon City.
(c) Limitation on City's Obligations
The foregoing provisions of this Section 3.11 notwithstanding, City shall not be liable for or obligated to reconstruct, repair, restore, reinstall, or replace any improvements or any furnishings, fixtures, or equipment, or other personal property,

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installed, placed, located in, on or about the Leased Premises by Lessee, Lessee's employees, agents, representatives, tenants, or sub lessees. (d) The Payment of Rental
In the event any or all of the City improvements located in or on the Leased Premises shall suffer either Partial or Substantial Destruction at any time during the term hereof, the monthly rental due to be paid by Lessee shall be paid to the date of such destruction and shall then be abated to the extent that the Leased Premises are untenantable, so that Lessee shall only be obligated to pay rental on those portions of the Leased Premises that are tenantable.

3.12 Early Termination by City
City may terminate this Agreement prior to expiration of the term hereof upon the happening of one or more of the following events:
(a) Lessee fails to make any payment of rent or any other required payment, as and when due herein, where such failure continues for a period of thirty (30) days following service of notice thereof upon Lessee by City.
(b) Lessee fails to obtain or maintain any of the insurance coverages required by this Agreement.
(c) Lessee vacates or abandons the Leased Premises for a period of thirty (30) days or more for any reason other than fire or other casualty damage affecting the Leased Premises.
(d) Lessee breaches the covenants contained in Sections 1, 2 or 4 of Section B of that document entitled "Assurances Required by The Federal Aviation Administration," and incorporated by reference in this Agreement in Section 3.06 or (e) Lessee defaults in performance of any promise, term, condition, or covenant required of it herein and such failure continues for a period of thirty (30) days following service of notice thereof upon Lessee by City or for such longer period as may be reasonable given the nature of the default so long as Lessee shall have commenced the cure and thereafter diligently and continuously pursued such cure to completion within thirty (30) days after receipt of City’s notice of the need therefor .

3.13 Early Termination by Lessee
At any time that Lessee is not in default of its payments or other obligations to City herein, Lessee may, without penalties, elect to terminate this Agreement prior to expiration of the term by providing not less than ninety (90) days’ notice to City of Lessee’s election to so terminate. Termination of the Agreement shall be effective ninety (90) days after City’s receipt of such notice unless Lessee’s notice shall have specified a later date for termination of the Agreement. In the event Lessee elects to so terminate this Agreement, Lessee shall pay City an early termination fee in an amount that is equivalent to three (3) months’ Base Rent that would have otherwise

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been payable by Lesse had Lessee not elected to exercise its right of early termination.

3.14 Execution by City Council
Submission of this document by City for review, examination or execution by Lessee does not constitute a reservation of an option to lease space on the Airport, and this document shall not be effective as a lease agreement, or otherwise, unless and until approved by the City Council of the City and executed by the officer authorized by said Council.

3.15 Force Majeure
Neither City nor Lessee shall be deemed to be in breach of this Agreement if either is prevented from performing any of its obligations herein by reason of strike, boycott, labor dispute, embargo, shortage of energy or materials, act of God, act of a public enemy, act of a superior governmental authority, weather conditions, rebellion, riot, sabotage, or any other circumstance for which it is not responsible, or which is not within its control.

3.16 Headings
The headings of the articles and Sections of this Agreement are inserted only as a matter of convenience and for reference, and do not define or limit the scope or intent of any provisions of this Agreement and shall not be construed to affect in any manner the terms and provisions hereof or the interpretation or construction thereof.

3.17 Holding Over
If Lessee remains in possession of the Leased Premises following the expiration or earlier termination of this Agreement, such holding over shall not be deemed to constitute an extension or renewal of this Agreement but shall merely create a tenancy from month-to-month which either party hereto may terminate upon ninety (90) days advance written notice to the other provided Lessee is in good standing. In the event of such holding over, Lessee shall perform all terms, promises, conditions and covenants required of it herein, but shall pay rent to City in such amounts as are consistent with City’s then-existing lease rate, which in no case shall be less than that in effect immediately prior to such expiration or earlier termination of this Agreement.

3.18 Indemnification of City
Lessee shall indemnify, defend and hold City and its elected representatives, officers, agents and employees harmless from and against all liabilities, losses, costs, suits, claims, judgments, expenses, fines or demands of any kind (including, but not limited to, costs of investigation, court costs and expert fees) resulting from any injury, damage or death to any person or property, of any nature whatsoever, and arising out of or alleged to arise out of the use, occupancy or operations of Lessee, or any of its officers, representatives, agents, employees, contractors, subcontractors, licensees, subtenants, invitees, or suppliers, at the Airport. Lessee shall not be liable for any injuries, death or damage to the extent that such

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injury, death or damage is caused exclusively by the negligence of City, its elected representatives, officers, agents or employees. This Section 3.18 shall survive the termination or expiration of this Agreement

3.19 Interpretation of Agreement
Nothing herein contained shall be construed or interpreted, in any manner whatsoever, as limiting, relinquishing or waiving any of the rights of ownership enjoyed by City in and to Airport property, or in any manner waiving or limiting City's control over the operation and maintenance of the Airport property or in derogation of such governmental rights as City possesses, except as is specifically provided for herein.

3.20 Invalid Provisions
In the event of any covenant, condition or provision of this Agreement, or the application thereof to any person, entity, or circumstances, shall to any extent be held by a court of competent jurisdiction to be invalid, void or unenforceable, the remainder of the terms, covenants, conditions or provisions of this Agreement, or the application thereof to any person, entity, or circumstance, shall remain in full force and effect and shall in no way be affected, impaired or invalidated, provided that such invalidity, voiding or unenforceability of such covenant, condition or provision does not materially prejudice either party in its respective rights and obligations contained in the then remaining valid covenants, conditions or provisions of this Agreement.

3.21 Licenses and Permits
Lessee shall obtain, at its sole cost and expense, all necessary licenses and permits required for construction of improvements or installation of equipment on the Leased Premises, and any other licenses or permits necessary for the conduct of Lessee's operations at Airport.

3.22 National Pollutant Discharge Elimination System
Operator shall comply with all federal and State regulations governing the National Pollutant Discharge Elimination System (NPDES) including all future amendments of said regulations, and procedures as may be adopted by federal, State or local agencies.

3.23 Negation of Partnership
Nothing in this Agreement shall be construed to render City in any way or for any purpose, a partner, joint venture, or associate in any relationship with Lessee other than that of landlord and tenant, nor shall this Agreement be construed to authorize either City or Lessee to act as agent for the other.

3.24 Net Lease
Except as otherwise expressly provided herein, this Agreement shall be without cost to City for the maintenance and improvement of the Leased Premises.

3.25 Noise Control
Lessee shall not conduct any operation or activity on the Leased Premises, or elsewhere at Airport, which produces sound of such volume, frequency or intensity as to constitute a nuisance. The Airport Manager shall have the sole and exclusive authority to

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determine what constitutes a nuisance under the provisions of this Section, except that operations and activities having noise levels not in violation of federal, State or local governmental standards shall not be deemed a nuisance, and not in conflict with existing Senate Bill 2630 excluding air ambulance operations section 21662.4 of the PUC.

3.26 Nondiscrimination
Lessee, for itself, its personal representatives, successors in interest, and assigns, as part of the consideration hereof, does hereby covenant and agree that (1) no person on the grounds of race, color, creed, national origin, sex, age or handicap shall be excluded from participation in, denied the benefits of, or be otherwise subjected to discrimination in the use of Lessee's facilities pursuant to its operations herein; (2) that in the furnishing of services on Airport, no person on the grounds of race, color, creed, national origin, sex, age, or handicap shall be excluded from participation in, denied the benefit of, or otherwise be subjected to discrimination; (3) that Lessee shall use Airport in compliance with all other requirements imposed by or pursuant to Title 49, Code of Federal Regulations, Department of Transportation, Subtitle A, Office of the Secretary, Part 21, Nondiscrimination in Federally assisted programs of the Department of Transportation-Effectuation of Title VI of the Civil Rights Act of 1964, and as such Regulations may be amended.

3.27 Nonexclusive Rights
Nothing herein shall be construed to grant or authorize the granting of any exclusive right or privilege within the meaning of Section 308 of the Federal Aviation Act for the conduct of any activity on the Airport; provided, however, subject to the terms and provisions of this Agreement, Lessee shall have the right to exclusive possession of the Leased Premises described by Section 2.02.

3.28 Non-waiver of Rights
No waiver of default by either party hereto of any of the terms, promises, covenants, or conditions hereof to be performed, kept, and observed by the other party shall be construed as, or shall operate as, a waiver of any subsequent default of any of the terms, promises, covenants, or conditions herein contained, to be performed, kept, and observed by such other party.

3.29 Notice of Claims and Suit
City and Lessee shall each give the other prompt and timely written notice of any personal injury or other accident claims, and of any lawsuit coming to its knowledge when either such claim or lawsuit arises out of or is in any way connected with the Leased Premises, the operations of Lessee herein, or the construction or operation of Airport by City, which in any way, directly, indirectly, contingently or otherwise, might reasonably affect the parties' relationship under this Agreement.

Such notice shall be deemed prompt and timely if given within thirty (30) calendar days following the date of receipt of such claim by an officer, agent, or employee of either party, or if given within ten (10) calendar days following the date of service of process upon either party with respect to any such lawsuit.

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3.30 No Warranty Regarding Airport
City does not warrant that Airport will continue to be used as an airport during the term of this Agreement. In the event that such airport use is terminated, whether temporarily or permanently, the City will negotiate in good faith a settlement; provided, however, if City’s use as an airport is terminated, such termination shall be cause for Lessee’s immediate termination of this Lease.

3.31 Nuisance and Waste
Lessee shall not erect, nor permit to be erected, any nuisance, as defined by applicable law, on the Leased Premises, or permit any waste thereof. Lessee shall not permit any trash or garbage to accumulate on or about the Leased Premises.

3.32 Prohibition of Liens
Lessee shall pay promptly, as due, all persons supplying labor and materials for any alteration of, or improvement to, the Leased Premises, and shall permit no lien or claim to be filed or prosecuted against City on account of such labor and materials furnished. If any such lien shall be filed, Lessee shall cause such lien to be discharged by payment or bond within thirty (30) days after Lessee’s receipt of notice of such filing.

3.33 Removal of Lessee's Property
If Lessee is not in default as to the payment of any rent, fee, or other charge payable to City herein, Lessee may remove its inventory, Trade Fixtures and furnishings from the Leased Premises upon expiration or earlier termination of this Agreement. If Lessee does not elect, or otherwise fails to remove the same, or any part thereof, within thirty (30) days following City's regaining possession of the Leased Premises, City may, at its option, either require such removal at Lessee's sole cost and expense, or keep such property, in which latter event, title to the same shall vest in City without any obligation to pay Lessee with respect thereto.

3.34 Reports
Lessee shall provide City with any reasonable non-proprietary or confidential operational reports which the Airport Manager may from time-to-time request by written notice to Lessee.

3.35 Restrictions and Regulations
This Agreement, and the rights herein granted, shall be subject to any and all applicable federal, State and City rules, regulations, orders and restrictions which are now in force, or which may hereafter be adopted by any duly authorized governmental agency with respect to Lessee's operation at Airport.

3.36 Right of Entry
City, its officers, agents, and employees shall have the right, throughout the term of this Agreement, to enter upon the Leased Premises for any lawful purpose, including the purpose of determining whether Lessee is complying with its obligations under this Lease. City will provide Lessee with not less than forty-eight (48) hours’ prior notification of City’s intent to enter the

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Leased Premises unless an emergency reasonably warrants entry due to emergency services provided by City.

Such entry by City shall not be deemed to excuse Lessee's performance of any promise, term, condition, or covenant required of it by this Agreement, and shall not be deemed to constitute waiver thereof by City.

3.37 Risk Reduction
Lessee shall neither use nor permit the use of the Leased Premises in such a manner as to increase the risk which would affect the rate of insurance thereon in excess of that in existence at the commencement of the term hereof; provided, however, City warrants and represents to Lessee that Lessee’s Authorized Use under this Lease does not increase City’s risk so as to detrimentally affect City’s rate of insurance.

3.38 Signs
As used herein, "sign" means any advertising sign, billboard, identification sign or symbol, poster, or other similar device, regardless of content.

Lessee shall not erect, maintain, or display any sign on the Leased Premises, or elsewhere at Airport, without the prior written consent of the Airport Manager. Lessee shall submit drawings, sketches, designs, and dimensions of such signs to the Ukiah Airport Manager when requesting such approval. All such signs shall be consistent with City's general sign policy for Airport and the provisions of the Ukiah City Code. Any condition, restriction, or limitation as to use or appearance of such signs as may be stated by the Airport Manager in writing shall become a part of this Agreement, as if specifically set forth herein. Notwithstanding the foregoing, City acknowledges that Lessee has occupied the Leased Premises pursuant to a sublease with a former lessee of City and hereby agrees that all of Lessee’s signage existing as of the Commencement Date is hereby approved by City.

3.39 Subordination
This agreement shall be subordinate to the provisions of any existing and future agreement, rules and regulations between Lessor and the United States of America, or any agency or administrative arm thereof relating to the operation or maintenance of the Ukiah Regional Airport or the conduct or operation of any flight school or other governmental operation thereon.

3.40 Successors and Assigns
The provisions of this Agreement shall be binding upon and inure to the benefit of the respective successors, assigns, heirs, and personal representatives of the parties hereto.

3.41 Surrender of Leased Premises
City is required to give Lessee any notice to quit possession of the Leased Premises upon expiration or earlier termination of this Agreement. Lessee shall peaceably surrender possession of the Leased Premises upon expiration or earlier termination of this Agreement in as good order and condition as when received, excepting reasonable wear, destruction by lightning or other natural causes, or fire not caused by the acts or omissions of Lessee, its

Tenant City of Ukiah Municipal Airport
Agreement for Lease of Property Page 23 of 25
DRAFT
officers, agents, employees, subcontractors, customers, invitees, or other persons doing business with Lessee or on the Leased Premises with the consent of Lessee.

3.42 Taxes
Lessee shall, at its cost and expense, pay any and all taxes for which it is legally responsible as result of Lessee’s use or occupancy of the Leased Premises.

3.43 Time of the Essence
Time is of the essence in the performance of this Agreement.

3.44 Entire Agreement
This Agreement, together with all attached exhibits, contains the entire agreement between the parties concerning the lease of the Leased Premises to Lessee. This Lease supersedes and replaces any other representations, statements or agreements by or between the parties concerning the lease of the Leased Premises to Lessee. This Agreement may be amended only by written instrument duly executed by Lessor and Lessee, except as stipulated in Section 3.04.

3.45 Counterparts and Electronic Signatures
This Agreement may be executed in any number of counterparts, each of which shall be deemed an original, but all of which together shall constitute only one and the same Agreement. It may also be executed and delivered by an electronic, digital or encrypted signature (each for purposes of this provision an “Electronic Signature”), or by e-mailing a signed scanned document, and the parties agree that such Electronic Signature or email delivery of a signed, scanned document shall have the same force and effect as delivery of an original document with an ink-to-paper signature (a “Wet Signature”), and that each party may use such Electronic Signatures or email delivery of a signed, scanned document as evidence of the execution and delivery of this Agreement by all parties to the same extent that a Wet Signature could be used. For the avoidance of doubt, if a party requires documents with Wet Signatures for record purposes, these documents will be provided for replication purposes only (of the executed e-mail document) and will not constitute a new agreement. Neither party is obligated to use an Electronic Signature to execute this Agreement and may so choose to use a Wet Signature.

Tenant City of Ukiah Municipal Airport
Agreement for Lease of Property Page 24 of 25
DRAFT
IN WITNESS WHEREOF, the parties have entered this Agreement as of, but not necessarily on, the Effective Date.

By: __
Sage Sangiacomo, City Manager

CITY OF UKIAH

Date:

FEDERAL EXPRESS CORPORATION
By: ________________________________

Printed Name: _________________________

Title:

Date:

Approved by Legal:

[FedEx Doc. No. ___________]

ATTEST: ___________________________
Kristine Lawler, Clerk

CITY OF UKIAH
Date:

Tenant City of Ukiah Municipal Airport
Agreement for Lease of Property Page 25 of 25
DRAFT

Tenant City of Ukiah Municipal Airport
Agreement for Lease of Property Page 26 of 25
DRAFT

EXHIBIT A

Insurance Requirements EXHIBIT B

CITY OF UKIAH

INSURANCE REQUIREMENTS FOR LESSEES
Without limiting Lessee’s obligation to indemnify the City under the attached Agreement for Lease of Property (Agreement), Lessee shall procure and maintain for the duration of the Agreement insurance against claims for injuries to persons or damages to property which may arise from or in connection with Lessee’s space, products and operations pursuant to the Agreement. City shall retain the right at any time to review the coverage, form, and amount of the insurance required hereby. If in the commercially reasonable opinion of the City’s Risk Management Office the insurance provisions in these requirements do not provide adequate protection for City and for members of the public, City may require Lessee to obtain insurance sufficient in coverage, form and amount to provide adequate protection. City’s requirements shall be reasonable but shall be imposed to assure protection from and against the kind and extent of risks that exist at the time a change in insurance is required.

Verification of Coverage
Lessee shall furnish the City with certificates of insurance evidencing coverage required herein, including copies of endorsements with specific reference to each of the coverage modifications or amendments set forth below. Certified copies of required endorsements must be attached to provided certificates. All certificates are to be received and approved by the City prior to the effective date of the Agreement. Upon reasonable advance notice to Lessee, the City reserves the right to inspect Lessee’s policies of insurance at Lessee’s executive headquarters located at 942 South Shady Grove Road, Memphis, Tennessee 38120.

Minimum Scope of Insurance
Coverage shall be at least as broad as:

1. Insurance Services Office Commercial General Liability coverage (occurrence form CG 0001).

2. Insurance Services Office form number CA 0001 (Ed. 6/92) covering Automobile Liability, code 1 (any auto).

3. Workers’ Compensation insurance as required by State of California and Employer’s Liability Insurance.

4. Cargo Legal Liability (if applicable)

Insurance Requirements EXHIBIT B
Minimum Limits of Insurance
Lessee shall maintain for itself, and its officers, representatives, agents, employees, guests, patrons, contractors, subcontractors, licensees, invitees, and suppliers limit no less than:

1. General Liability: $2,000,000 per occurrence for bodily injury, personal injury and property damage. If Commercial General Liability Insurance or other form with a general aggregate limit is used, either the general aggregate limit shall apply separately to this project/location or the general aggregate limit shall be twice the required occurrence limit. Fire legal not less than $250,000

2. Automobile Liability: $1,000,000 per accident for bodily injury and property damage for all owned, non-owned, and hired vehicles operated by or on behalf of Lessee on the Leased Premises, or elsewhere at the Airport, including any additional or replacement vehicles.

3. Workers’ Compensation: Statutory

4. Employer’s Liability: $1,000,000 per accident for bodily injury or disease.

Deductibles and Self-Insured Retention
Any deductibles or self-insured retention must be declared to and approved by the City, which approval shall not be unreasonably withheld. The City acknowledges that, as of the Commencement Date, the City approves Lessee’s deductibles and self-insured retention as evidenced by the existing Certificates of Insurance on file with the City. At the option of the City, either: the insurer shall reduce or eliminate such deductibles or self-insured retention as respects the City, its officers, officials, employees and volunteers; or the Lessee shall procure a bond in a commercially reasonable amount guaranteeing payment of losses and related investigations, claim administration and defense expenses.

Other Insurance Provisions
The general liability and automobile liability policies are to contain, or be endorsed to contain, the following provisions:

1. The City, its officers, officials, employees, agents and volunteers are to be covered as additional insured as respects: liability arising out of activities performed by or on behalf of the Lessee; products and completed operations of the Lessee; premises owned, occupied or used by the Lessee; or automobiles owned, leased, hired or borrowed by the Lessee. The coverage shall contain no special limitations on the scope of protection afforded to the City, its officers, officials, employees, agents or volunteers.

Insurance Requirements EXHIBIT B

2. For any claims related to Lessee’s activities pursuant to the Agreement, the Lessee’s insurance coverage shall be primary insurance as respects the City, its officers, officials, employees, agents and volunteers. Any insurance or self-insurance maintained by the City, its officers, officials, employees, agents or volunteers shall be excess of the Lessee’s insurance and shall not contribute with it.

3. Any failure to comply with reporting or other provisions of the policies including breaches of warranties shall not affect coverage provided to the City, its officers, officials, employees, agents or volunteers.

4. The Lessee’s insurance shall apply separately to each insured against whom claim is made or suit is brought, except with respect to the limits of the insurer’s liability.

5. Each insurance policy required by this clause shall be endorsed to state that coverage shall not be suspended, voided, canceled by either party, reduced in coverage or in limits except after thirty (30) days’ prior written notice by certified mail, return receipt requested, has been received by the City.

6. To the extent permitted by law, the workers’ compensation policy required hereunder shall be endorsed to state that the workers’ compensation carrier waives its right of subrogation against the City, its officers, officials, employees, agents or volunteers, which might arise by reason of payment under such policy in connection with work performed under this Agreement by the Lessee.

Acceptability of Insurers
Insurance is to be placed with insurers with a current A.M. Best’s rating of no less than A- for financial strength, AA for long-term credit rating and AMB-1 for short-term credit rating. The City Risk Manager may waive or alter this requirement or accept self-insurance in lieu of any required policy of insurance if, in the opinion of the Risk Manager, the interests of the City and the general public are adequately protected.

Assurances Required by the Federal Aviation Administration EXHIBIT C

ASSURANCES REQUIRED BY THE FEDERAL AVIATION ADMINISTRATION

SECTION A
Purpose, Classes of Activities, Applicability of Assurances And
Definition of Terms

1. PURPOSE:

The City of Ukiah, California, an airport owner subject to both Federal Grant Agreement obligation; is required by the Federal Aviation Administration (FAA) to include specific provisions, addressing, among other things, the requirements of Title VI of the Civil Rights Act of 1964, Exclusive Rights prohibitions, and Affirmative Action items contained in Title 14 Code of Federal Regulations Part 152, within all agreements (including, without limitation, leases, licenses, permits, and contracts) between said City and any and all entities who use or perform work or conduct activities on City owned or operated airport premises for aeronautical or non-aeronautical purposes.

The purpose of this Exhibit is to appropriately incorporate within the “Agreement,” to which it is attached and made a part of by reference therein, the seventeen (17) numbered provisions contained within Section “B,” “ASSURANCES,” below.

2. CLASSES OF ACTIVITIES:

The applicability of each of the seventeen (17) numbered provisions contained within Section “B,” “ASSURANCES,” below, to that certain “Agreement” to which this Exhibit is attached and made a part of by reference therein, is, among other things, dependent upon the type of work to be performed and/or the type of activities to be conducted at the airport(s) by the Lessee, Permittee, Licensee, Operator, etc., named therein, pursuant to and in accordance with those certain rights, privileges, uses, and operations, expressly granted and/or authorized there under.

The following activity classifications, as established by the FAA, are provided for the information and guidance of all concerned:
a. Direct and Supportive Aeronautical: The following activities, commonly conducted on airports, are AERONAUTICAL ACTIVITIES:
(1) Aerial Firefighting
(2) Charter Operations
(3) Pilot Training
(4) Aircraft rental and sightseeing
(5) Air Ambulance
(6) Crop dusting
(7) Aerial Advertising and Surveying
(8) Aircraft Sales and Services
(9) Sale of Aviation Petroleum products (whether or not conducted in conjunction with other included activities)
(10) Repair and Maintenance of Aircraft
(11) Sale of Aircraft Parts
(12) Any other activities which, because of their direct relationship to the operation of an aircraft, can appropriately be regarded as an “aeronautical activity.”

Assurances Required by the Federal Aviation Administration EXHIBIT C b. Complementary Aeronautical: The following activities, when conducted on airports, are COMPLEMENTARY AERONAUTICAL ACTIVITIES:
(1) Ground Transportation (taxis, car rentals, limousines) (2) Restaurants
(3) Barber Shops
(4) Auto Parking Lots
(5) Recreational Facilities
(6) Any other commodities, services or accommodations made available to the general public.
c. Non-Aeronautical: The following activities, when conducted on airports, being neither “Direct and Supportive Aeronautical” nor “Complementary Aeronautical,” as defined above, are NON-AERONAUTICAL ACTIVITIES.
(1) Manufacturing
(2) Agriculture
(3) Any other activity not appropriately falling within the above-said “Direct and Supportive Aeronautical” and/or “Complementary Aeronautical,” classifications.

3. APPLICABILITY OF NUMBERED PROVISIONS WITHIN SECTION “B,” “ASSURANCES,” BELOW TO CLASS (ES) OF ACTIVITIES SPECIFIED WITHIN PARAGRAPH 2, ABOVE:

The applicability of the numbered provisions within Section “B,” “Assurances,” below, to the respective classes of activities specified within sub-paragraphs 2a, b, and c, of this Section “A,” above, is as follows:

NUMBERED PROVISIONS

ACTIVITY CLASS APPLICABLE TO CLASS

Direct and Supportive Aeronautical 1 through 17
Complementary Aeronautical 1 through 16
Non-Aeronautical 1 through 16

4. DEFINITION OF TERMS USED WITHIN SECTION “B,” “ASSURANCES,” BELOW:

In order to facilitate ease of fulfillment of the requirement specified within paragraph 1 of this Section “A,” this Exhibit is designed to be attached to and made a part of all City of Ukiah Airport “Agreements,” including, without limitation, leases, licenses, permits, contracts, etc.

Therefore, in the event the “Agreement” to which this Exhibit is attached and made a part of by reference therein shall be other than a lease or be a lease within which the parties thereto are therein called or referred to other than “Lessor” and “Lessee,” then, where the terms “Lessor,” “Lessee,” and “Lease” appear, as shown, within the seventeen (17) numbered “ASSURANCES” listed within Section “B,” below, said terms shall be deemed to mean “CITY OF UKIAH, CALIFORNIA,” “THE OTHER PARTY TO THE PARTICULAR AGREEMENT” (e.g., Licensee, Permittee, Concessionaire, Operator, etc.), and the “AGREEMENT” itself (regardless of title, type and/or description, including, without limitation, Leases, Agreements, Licenses, Permits, and Contracts) respectively. Where the terms “LAND LEASED” and “LEASED PREMISES” (and all reasonably readily identifiable derivations thereof) appear, said terms shall be deemed to mean the

Assurances Required by the Federal Aviation Administration EXHIBIT C land(s) and/or premises specifically identified within the “Agreement” as being that/those to which leasehold tenancies, occupancies, use(s), operation(s), and/or access(es) by the Lessee, Permittee, Licensee, Operator, Concessionaire, etc., are expressly authorized. In all cases, where the term “AIRPORT” appears, as shown, it shall be deemed to mean Ukiah Regional Airport as identified within the “Agreement” between the parties as being the Airport to which the “Agreement” pertains.

SECTION B
Assurances

1. The “LESSEE,” for itself, its heirs, personal representatives, successors in interest, and assigns, as a part of the consideration hereof, does hereby covenant and agree (as a covenant running with the land if the “Agreement” to which this Exhibit is attached is a lease) that in the event facilities are constructed, maintained, or otherwise operated on the said property described in this “LEASE” for a purpose for which a U.S. Department of Transportation (DOT) program or activity is extended or for another purpose involving the provision of similar services or benefits, the “LESSEE” shall maintain and operate such facilities and services in compliance with all other requirements imposed pursuant to Title 49, Code of Federal Regulations, DOT, Subtitle A, Office of the Secretary, Part 21, Nondiscrimination in Federally-Assisted Programs of the Department of Transportation-Effectuation of Title VI of the Civil Rights Act of 1964, and as said Regulations may be amended.

2. The “LESSEE,” for itself, its personal representatives, successors in interest, and assigns, as a part of the consideration hereof, does hereby covenant and agree (as a covenant running with the land if the agreement to which this Exhibit is attached is a lease) that: (1) no person on the grounds of race, color, or national origin shall be excluded from participation in, denied the benefits of, or be otherwise subjected to discrimination in the use of said facilities, (2) that in the construction of any improvements on, over, or under such land and the furnishing of services thereon, no person on the grounds of race, color, or national origin shall be excluded from participation in, denied the benefits of, or otherwise be subject to discrimination, (3) that the “LESSEE” shall use the “premises” in compliance with all other requirements imposed by or pursuant to Title 49, Code of Federal Regulations, Department of Transportation, Subtitle A, Office of the Secretary, Part 21, Nondiscrimination in Federally-Assisted Programs of the Department of Transportation-Effectuation of Title VI of the Civil Rights Act of 1964, and as said Regulations may be amended.

3. That in the event of breach of any of the above nondiscrimination covenants, “LESSOR” shall have the right to terminate the “LEASE” and to reenter and repossess said land and the facilities thereon and hold the same as if said “LEASE” had never been made or issued. This provision does not become effective until the procedures of 49 CFR Part 21 are followed and completed including expiration of appeal rights.

4. “LESSEE” shall furnish its accommodations and/or services on a fair, equal and not unjustly discriminatory basis to all users thereof and it shall charge fair, reasonable and not unjustly discriminatory prices for each unit or service; PROVIDED, THAT the “LESSEE” may be allowed to make reasonable and nondiscriminatory discounts, rebates or other similar type of price reductions to volume purchasers.

Assurances Required by the Federal Aviation Administration EXHIBIT C

5. Non-compliance with Provision 4 above shall constitute a material breach thereof and in the event of such non-compliance the CITY OF UKIAH, CALIFORNIA (“LESSOR”) shall have the right to terminate this “LEASE” and the estate hereby created without liability therefore or at the election of the “LESSOR” or the United States either or both said Governments shall have the right to judicially enforce Provisions 1, 2, 3, and 4 above.

6. “LESSEE” agrees that it shall insert the above five (5) provisions in any lease, agreement, contract, etc., by which “LESSEE” grants a right or privilege to any person, firm or corporation to render accommodations and/or services to the public on the “premises” herein “LEASED.”

7. The “LESSEE” assures that it will undertake an affirmative action program as required by 14 CFR Part 152, Subpart E, to ensure that no person shall on the grounds of race, creed, color, national origin, or sex be excluded from participating in any employment activities covered in 14 CFR Part 152, Subpart E. The “LESSEE” assures that no person shall be excluded on these grounds from participating in or receiving the services or benefits of any program or activity covered by this subpart. The “LESSEE” assures that it will require that its covered sub organizations provide assurances to the “LESSEE” that they similarly will undertake affirmative action programs and that they will require assurances from their sub organizations, as required by 14 CFR 152, Subpart E, to the same effect.

8. The “LESSOR” reserves the right to further develop or improve the landing area of the “Airport” as it sees fit, regardless of the desires or view of the “LESSEE” and without interference or hindrance.

9. The “LESSOR” reserves the right, but shall not be obligated to the “LESSEE,” to maintain and keep in repair the landing area of the “Airport” and all publicly owned facilities of the “Airport,” together with the right to direct and control all activities of the “LESSEE” in this regard.

10. This “LEASE” shall be subordinate to the provisions and requirements of any existing or future agreement between the “LESSOR” and the United States, relative to the development, operation or maintenance of the “Airport.”

11. There is hereby reserved to the “LESSOR,” its successors and assigns, for the use and benefit of the public, a right of flight for the passage of aircraft in the airspace above the surface of the “premises” herein “LEASED.” This public right of flight shall include the right to cause in said airspace any noise inherent in the operation of any aircraft used for navigation or flight through the said airspace or landing at, taking off from or operation on the “Airport.”

12. “LESSEE” agrees to comply with the notification and review requirements covered in Part 77 of the Federal Aviation Regulations in the event future construction of a building is planned for the “LEASED PREMISES,” or in the event of any planned modification or alteration of any present or future building or structure situated on the “LEASED PREMISES.”

13. The “LESSEE,” by accepting this “LEASE,” expressly agrees for itself, its successors and assigns that it will not erect nor permit the erection of any structure or object, nor permit the growth of any tree on the “land leased” hereunder which would exceed the height limits of Part 77 of the Federal Aviation Regulations. In the event the aforesaid covenants are breached, “LESSOR” (the owner) reserves the right to enter upon the “land leased” hereunder and to remove the offending structure or object and cut the offending tree, all of which shall be at the expense of the “LESSEE.”

Assurances Required by the Federal Aviation Administration EXHIBIT C

14. The “LESSEE,” by accepting this “LEASE,” agrees for itself, its successors and assigns, that it will not make use of the “LEASED PREMISES” in any manner which might interfere with the landing and/or taking off of aircraft at and/or from the “AIRPORT” or otherwise constitute a hazard. In the event the aforesaid covenant is breached, the “LESSOR” (owner) reserves the right to enter upon the “premises hereby leased” and cause the abatement of such interference at the expense of the “LESSEE.”

15. This “LEASE,” and all the provisions hereof shall be subject to whatever right the United States Government now has or in the future may have or acquire, affecting the control, operation, regulation and taking over of said “AIRPORT” or the exclusive or nonexclusive use of the “AIRPORT” by the United States during the time of war or national emergency.

16. It is the policy of the Department of Transportation (DOT) that disadvantaged, and minority business enterprises as defined in 49 CFR Part 23 shall have the maximum opportunity to participate in the performance of leases as defined in 49 CFR 23.5. Consequently, these leases are subject to 49 CFR Part 23, as applicable. “LESSEE” hereby covenants and agrees that no person shall be excluded from participation in, denied the benefits of or otherwise discriminated against in connection with the award and performance of any contract, including leases, covered by 49 CFR Part 23 on the grounds of race, color, national origin or sex. “LESSEE” agrees that it will include the above clauses in all sub-leases and cause sub lessees to similarly include the clauses in further sub-leases.

17. It is understood and agreed that nothing herein contained shall be construed to grant or authorize the granting of an exclusive right within the meaning of Section 308a of the Federal Aviation Act of 1958 (49 U.S.C. 1349a).

Agenda Item No: 8.b.

MEETING DATE/TIME: 11/6/2024

ITEM NO: 2024-751

AGENDA SUMMARY REPORT
SUBJECT: Authorize the City Manager to Negotiate and Execute a Grant Agreement with the California Public Utilities Commission (CPUC) for the City of Ukiah Gigabit Fiber Project, and Approve Corresponding Budget Amendments.

DEPARTMENT: Community
Development PREPARED BY: Jim Robbins, Housing and Grants Manager PRESENTER: Andrea Trincado, Grants Manager, Community
Development Department
ATTACHMENTS:

1. Application

2. CPUC_Draft_Resolution

3. FFA_Consent_Form

4. Government-Agency-Taxpayer-ID-Form
Summary: Council will consider authorizing the City Manager to negotiate and execute a grant agreement with the California Public Utilities Commission (CPUC) for the City of Ukiah Gigabit Fiber Project, and approve corresponding budget amendments.

Background: On September 29, 2023, the City submitted an application (Attachment 1) to the California Public Utilities Commission (CPUC) Federal Funding Account (FFA) Last Mile grant program for a project called "City of Ukiah Gigabit Fiber Project." The proposed project includes the construction of approximately 154,000 feet of fiber in a network backbone that will connect to the statewide Middle Mile Network near the US 101 freeway, forming the cornerstone of a network that will serve 375 underserved locations and an approximate total of 2,558 locations. The project includes high- and low-level network design, aerial fiber construction, underground construction, permitting, construction management, and central office access equipment. Equipment that will be installed as part of the project includes an edge router, a core router, switches, access network, and cable drops. Roughly 96% of the network backbone will be installed aerially using existing City poles, while approximately 4% will consist of underground installation. By interconnecting City facilities, including the Civic Center, police and fire stations, water treatment plants, and critical electric utility facilities, local anchor institutions, parks, residential and other targeted locations, the City can strategically build out a broadband infrastructure, ensuring equitable access, fostering community engagement, improving administrative efficiency, and enhancing critical services.

On September 12, 2024, the CPUC adopted Resolution T-17839 (Attachment 2), which awarded the requested funding to the City's project, along with nine other projects in northern California.

Discussion: To accept the grant award from the CPUC, the City must execute and submit a FFA Last Mile grant Consent Form (Attachment 3) along with a signed Government Agency Taxpayer ID Form (Attachment 4). Staff recommends that the City Council review the attached grant documents, consider the project, and authorize the City Manager to negotiate and execute the grant agreement and all other associated documents with the CPUC FFA Last Mile grant program. Approval is also requested to approve all necessary corresponding budget amendments.

Recommended Action: Authorize the City Manager to negotiate and execute a grant agreement and all other associated documents with the California Public Utilities Commission (CPUC) to receive funding for the City of Ukiah Gigabit Fiber Project, and approve corresponding budget amendments.

BUDGET AMENDMENT REQUIRED: Yes
CURRENT BUDGET AMOUNT: Fund 209: $0
PROPOSED BUDGET AMOUNT: Fund 209: $5,587,154
FINANCING SOURCE: CPUC FFA Last Mile grant program
PREVIOUS CONTRACT/PURCHASE ORDER NO.: N/A
COORDINATED WITH: Andrea Trincado, Grants Manager; Craig Schlatter, Community Development Director; Mary Horger, Financial Services Manager
DIVERSITY-EQUITY INITIATIVES (DEI): Goal 5 – Instill diversity, equity, and inclusion as essential core elements of policy-making, accountability, and delivery of City services.

CLIMATE INITIATIVES (CI): 8a – Information Technology.

GENERAL PLAN ELEMENTS (GP): Ukiah 2040 General Plan Goals (ED-2, ED-8, PFS-6, PFS-10) and (ED2.1, ED-8.1, ED-8.2, PFS-6.1, PFS-6.2, PFS 10.5)

Details (?tabset-498b3=1) Files (?tabset-498b3=2) Notes (?tabset-498b3=14c81) Objections (?tabset-498b3=09be9) Post-Submission Data Request (?tabset-498b3=ef1.

Plan ID
1690
Served Locations
1,460
Total Locations
1,835
Served Total Network Investment
$5,519,908.51
Unserved Total Network Investment
$1,465,970.25
Mass Market Unserved Locations
375
Total Network Investment
$6,985,878.73
Est NPV EBITDA
-$2,955,838.94
Est NPV Cont Margin
-$8,671,441.00
Est Cumulative EBITDA
-$4,029,332.24
Est Cumulative Cont Margin
-$12,740,350.30
Est Cumulative Revenue
$8,694,071.11
Housing Units
3,100
Households
2,932
Population
6,804
Est. Subsidy Need
$588,745.39
Feature Class Code Count
0 CalEnviroScreen Score
32 Socioeconomic Vulnerability Index

60.98 County
Mendocino
High Cost Investment
0 Disadvantaged Community Category
No Housing Units
16 Within Tribal Area
0 Census Blocks
83 Low-Income Area
69 Disadvantaged Community
0 Low-Income Unserved Locations
329
Disadvantaged Unserved Locations
0 Company/Applicant's Name
City of Ukiah
CPCN/U-Number or pending CPCN application number, if applicable.

Contact Person
Jim Robbins
Contact Email
[email protected]
Contact Job Title
Senior Management Analyst
Project Title
City of Ukiah Gigabit Fiber Project
County/Counties
Mendocino
Community/Communities
Ukiah
Applicant Tool Information
Basic Information
Project Location
Company Applicant Name
City of Ukiah
Amount of FFA grant funding requested
$5,587,154.00
Application
City of Ukiah Gigabit Fiber Project Withdraw Application Edit Home (/s/) Funding Opportunities (/s/gms-funding-opportunity/GMS_Funding_Opportunity__c/Default) My Applicati ATTACHMENT 1

Project Type
Last-Mile
Amount of FFA grant funding requested
$5,587,154.00
Total Project Cost
$6,403,261.00
Median Household Income of the project area
$48,358.00
Map of the Proposed Project Area
VetroMap.png
(https://cpuc2.my.salesforce.com/sfc/p/3d0000008cO7/a/3d000001x1t8/wmphkzcob4Ht38EwuwygDugqFJ7_rpUovkrzTTKyQrU) Number of business locations in the project area that will receive new or improved service 350
Number of anchor institution locations in the project area that will receive new or improved service 6 Number of public safety locations in the project area that will receive new or improved service 7 Number of Unserved Households the project will serve
375
Maximum Mbps download speed for locations in the project area that will receive new or improved service 10,000
Maximum Mbps upload speed for locations in the project area that will receive new or improved service 10,000
Number of Mass Market Unserved Locations the project will serve 375
A description of the major infrastructure to be deployed The proposed project includes the construction of approximately 154,000 feet of fiber into a network backbone (connecting to the state middle mile project) forming the cornerstone of our project that will feed 375 unserved locations and a total of 2,558 locations. The project includes high- and low-level network design, aerial fiber construction, underground construction, permitting, construction management, utility pole replacement/repair and temporary poles, and central office access equipment. Equipment that will be installed as part of the project includes an edge router, a core router, switches, access network cable drops, software to manage the network, security software, customer service software, billing software, IP services, replacement spares for critical switches, routers, and other components, optical network units, NID enclosures, RG Management software, subscriber provisioning software, and fiber management software. Most of the network backbone will be aerial installation using existing City of Ukiah Electric Utility Department poles.

Estimated breakdown of aerial and underground installation 96% aerial and 4% underground will be installed in the project area.

Major Equipment Expenses
Major installation and equipment expenses include access network low-strand count fiber lines ($64,792), replacement utility poles and temporary poles ($1,700,000), aerial fiber materials and labor ($2,265,762), and underground fiber ($877,100) for the Ukiah Gigabit Broadband Project.

Estimated project plan with major milestones and construction timeline FFA Last Mile Grant Agreement executed in Quarter 0 (this event defines the start of the project timeline). Design Engineering completed in Quarter 2. Highlevel Design completed in Quarter 1. Low-level Design completed in Quarter 2. Final Design completed in Quarter 2. CEQA Review (Cat Ex filed) completed in Quarter 2. Permitting completed in Quarter 5. Construction bid process initiated in Quarter 6. Construction Bid Award completed by Quarter 7.

Staking/Preconstruction completed by Quarter 8. Backbone Construction completed by Quarter 11. Splicing & Network Connections completed by Quarter 11.

Grant-funded Service Drop Installation completed by Quarter 11. Network Launch completed by the end of Quarter 11. Project completed by 12/31/2026.

Description of proposed broadband project plan for which FFA funding is being requested, including the type of technology to be provided in the proposed service areas
1) Technologies to be provided in the proposed project area include the following for our municipally-owned fiber optic broadband network to serve unserved locations and other neighboring customers: high- and low-level network design, aerial fiber construction, underground fiber construction, permitting, construction management, utility pole replacement/repair and temporary poles, and central office access equipment including an edge router, a core router, switches, access network cable drops, software to manage the network, security software, customer service software, billing software, IP services, replacement spares for critical switches, routers and other components, optical network units, NID enclosures, RG Management software, subscriber provisioning software, and fiber management software. Most of the network backbone will be aerial installation using existing City of Ukiah Electric Utility Department poles.
2) The fiber broadband project will offer up to 10 Gbps Upload and 10 Gbps Download speed capabilities. 3) Construction details include grant agreement execution (Q0), design engineering (Q2), HLD (Q1), LLD (Q2), Final Design (Q2), CEQA Review resulting in a Cat Ex (Q2), Permitting (Q5), Construction bidding (Q6), Construction bid award (Q7), Staking/Preconstruction (Q8), Backbone construction (Q11), Splicing and network connections (Q11), Grant-funded service drop installation (Q11), and Network launch (Q11). A CEQA Cat Ex will be filed before the start of construction. The proposed project areas do not contain any environmentally sensitive areas. Any trenched areas that are disturbed will be restored posttrenching according to required state environmental guidelines for built-up urban areas. 4) Existing facilities that will be leveraged include the state’s Middle Mile Network along the Caltrans US 101 corridor right-of-way. 5) Our Last Mile project will require access to the state’s Middle Mile network. 6) The project accepts SB156 requirements for the state's Middle Mile facilities in the project area.

Primary Applicant Entity
City/Town
Partnership Entity
Telephone corporation with a Certificate of Public Convenience and Necessity (per P.U. Code 234) Documentation demonstrating the term, legal, procedural, and financial relationships of a partnership.

Applicant Entity Information_Documentation demonstrating the term, legal, procedural, and financial relationships of a partnership. (https://cpuc2.my.salesforce.com/sfc/p/3d0000008cO7/a/3d000001wrAa/JqPKzhfKbtu35YM4PutHbTJkxV2tJENYDOJv.bqD5CI) Certificate of Good Standing issued by the Secretary of State Applicant Entity Information_Certificate of Good Standing issued by the Secretary of State (https://cpuc2.my.salesforce.com/sfc/p/3d0000008cO7/a/3d000001wabp/t6s0Fg0d8IzqwRaT98VkSIRBNuvtlaGQZnfU7cyx20Q) Organizational Chart, Company History, and Statement of Readiness to Build, Manage, and Operate Broadband Applicant Entity Information_Organizational Chart, Company History, and Statement of Readiness to Build, Manage, and Operate Broadband (https://cpuc2.my.salesforce.com/sfc/p/3d0000008cO7/a/3d000001u15w/v.TrpeW3YxhbmUDIlAriji0rPz.fBEHXi8AHtpFiv9Q) Name
Jim Robbins
Title
Senior Management Analyst
Address
City of Ukiah
300 Seminary Ave
Ukiah CA 95482
Email Address
[email protected] (mailto:[email protected]) Phone Number
(707) 463-6708 (tel:7074636708)
Key Company Officers
Applicant Entity Information_Key Company Officers
(https://cpuc2.my.salesforce.com/sfc/p/3d0000008cO7/a/3d000001wxzn/Uv0cZUjBc.fJ7TMrl7SM6lc_sA4tVBBOBYluULKs8CU) A description of the applicant’s current broadband infrastructure and service within five miles of the proposed project The City of Ukiah, the "City of Ukiah Gigabit Fiber Project", and Sonic Telecom LLC do not currently own or operate broadband infrastructure and service within five miles of the proposed project.

A description of other providers’ infrastructure within the project area which can be leased, purchased or accessed via interconnection, including the statewide Middle Mile Network
The proposed project seeks to connect to the statewide Middle Mile Network adjacent to the US 101 corridor once it has been activated by the State. The statewide Middle Mile Network is the publicly available middle mile infrastructure available for the project's use.

The applicant must provide the following:

The geographic location of all households and housing units Project Location Data_The geographic location of all households and housing units (https://cpuc2.my.salesforce.com/sfc/p/3d0000008cO7/a/3d000001wZSO/aO_9mUGoh41nWXU9H3WhW_8qA9y7icHLyGJDoPbb.r4) The geographic location of the project related key network equipment served by proposed project Project Location Data_The geographic location of the project related key network equipment served by proposed project (https://cpuc2.my.salesforce.com/sfc/p/3d0000008cO7/a/3d000001wZww/BkjAQ12JWScsdGgeqEea4v_RNEoJBi12lPtVLkcjQys) The specific geographic boundary of the project area within which all project locations will fall (Shapefile/.kml file) Project Location Data_The specific geographic boundary of the project area within which all project locations will fall (Shapefile/.kml file) (https://cpuc2.my.salesforce.com/sfc/p/3d0000008cO7/a/3d000001v0nM/ZhE5SbRsm2_OTJDdJUNjAcp.JyX5p1Vo8Q84qAm9kr0) Applicant Entity Information
Key Contact Information
Description of the Applicant's Current Broadband Infrastructure and Existing Infrastructure in the Area Project Location Data

Median household income for each Census Block Group (CBG) that intersects the project area Median Income_Median household income for each Census Block Group (CBG) that intersects the project area (https://cpuc2.my.salesforce.com/sfc/p/3d0000008cO7/a/3d000001wfuj/6ii_8uWuOWK5w4A6mq5Fc61wticsA30sklJSFxfz4Pk) If requesting change in served status of any locations within proposed areas, submit evidence such as:

Qualitative Information
Provide CalSPEED tests
Crowdsourced speed test data from other platforms
Other available data
Reliability of service provided by existing providers
If served households or locations are included in a project, the application must include the rationale for why providing service to these households or locations is essential to the project.

Not applicable. No changes are requested in served status of locations within the proposed project area.

List Necessary Permits for Construction
Project construction will require aerial pole installation permits from AT&T, an encroachment permit from the City of Ukiah Public Works Department, and the filing of a CEQA Categorical Exemption (Cat Ex) by the City of Ukiah Planning Division.

Schedule for all Permit Approvals and Project Construction Deployment Schedule_Schedule for all Permit Approvals and Project Construction (https://cpuc2.my.salesforce.com/sfc/p/3d0000008cO7/a/3d000001wwFr/x4t5vGIu4JF3JGaI0BrT_R8emzV5qDWzQExvkkMrFsc) Estimated Direct Costs FFA
Proposed Project Expenditures_Estimated Direct Costs FFA (https://cpuc2.my.salesforce.com/sfc/p/3d0000008cO7/a/3d000001wxp1/BjEf4HzbwrpymA4MvZIaFGwkJ0D6_N9vbTSL6MK2XBM) Estimated Indirect Costs FFA
Proposed Project Expenditures_Estimated Indirect Costs FFA (https://cpuc2.my.salesforce.com/sfc/p/3d0000008cO7/a/3d000001wxn1/dQA0cUcKyybPirxWeXCjYLeAFhAZiO9JjLh1FTTAr6k) Total Estimated Direct Costs
$5,477,654.00
Total Estimated Indirect Cost
$109,500.00
Total Estimated Administrative Costs
$109,500.00
Letter of Credit for Applicant
Letter of Credit Requirement_Letter of Credit for Applicant (https://cpuc2.my.salesforce.com/sfc/p/3d0000008cO7/a/3d000001wxrF/iAgYcFm.L9eHMooWeBQmVkuWjL_gUpWSIRA01sLIZxY) Upload for Letter of Credit is mandatory for all entities except for Local and Tribal governments and CPCN holders.

List of the monthly service subscriptions rates that will be offered to all consumers 10,000 Mbps download / 10,000 Mbps upload at $49.99 per month 50 Mbps download / 20 Mbps upload at $39.99 per month
10,000 Mbps download / 10,000 Mbps upload for ACP subscribers at $29.99 per month (i.e. fully subsidized by federal ACP program) Median Income
Project Eligibility
Deployment Schedule
Proposed Project Expenditures
Letter of Credit Requirement
Pricing Commitment

Specify any commitments and/or requirements that the customer must accept in order to receive equipment, such as return of equipment.

The equipment must be returned upon cancellation of services.

List any data caps that will be included in the proposed project plans.

Data caps will not be included in the proposed project plans.

Any broadband plan(s) for low-income customers detailing prices. $29.99 for low-income customers participating in the federal ACP subsidy program at 10,000 Mbps download / 10,000 Mbps upload, with no data usage caps.

Also offering a standard plan at 50 Mbps download / 20 Mbps upload at $39.99 per month.

Will you offer or commit to offering California LifeLine and/or federal Lifeline service? No
If you are requesting a waiver to any requirement, please make the request here, along with the reason(s) for doing so. Grant recipients also may submit a request to the Communications Division to waive or modify these requirements in the future, should the need to adjust these requirements arise. In addition, the Commission will update these requirements as needed.

N/A
Applicants requesting funding for middle-mile infrastructure must submit open access offerings including tiered pricing structures and the standard terms and conditions that will be available to entities requesting interconnection.

N/A. Applicant is not requesting funding for middle-mile infrastructure. The project will connect to the statewide Middle Mile infrastructure.

Plan to encourage subscription of the service in the project location Marketing/Outreach Plan_Plan to encourage subscription of the service in the project location (https://cpuc2.my.salesforce.com/sfc/p/3d0000008cO7/a/3d000001vUgZ/rAZ_VIXD2m4PzEvAlBxwYBPbjmrmHHreXa1cY8JzZMo) Letters of Support or Endorsements
Government and Community Support_Letters of Support or Endorsements (https://cpuc2.my.salesforce.com/sfc/p/3d0000008cO7/a/3d000001wGP8/EfO1CQLA4JjJfdCdH1vh1LeWeYQ6HMiSdJSOVoxqHvc) Commitment to not increase monthly service subscription rates for a period of 5 years Commitment to not increase monthly service subscription rates for a period of 10 years Project shall provide service at no higher than 100 ms of latency.

Waived installation/service connection charges
Will participate in the Federal Communications Commission’s Affordable Connectivity Program or offer an equivalent service plan for the life of the Affordable Connectivity Program.

Applicants selecting to provide a low-cost broadband plan for all customers for the life of the infrastructure. The low-cost plan must meet the following minimum standards Low-Cost Broadband Plan
Must offer speeds that are sufficient for a household with multiple users to simultaneously telework and engage in remote learning, which is defined as 50/20 Mbps.

Must not include data usage caps
Must be no more than $40 per month, though recipients electing to provide these plans have the option to adjust plans in accordance with the Consumer Price Index
The grantee must not charge for installation or setup
The grantee must provide a free modem or router
The service does not require a minimum term. Alternatively, an applicant may offer a plan that meets the above requirements except provide with higher speeds and/or at a lower cost per month.

Marketing/Outreach Plan
Government and Community Support

Identify each applicable project funding source
The proposed project is intended to be funded primarily by the requested FAA Last Mile grant, funded by SB 156 using the state's ARPA funds ($5,477,654, 100% of requested grant project expenditures). An active City of Ukiah CPUC Local Agency Technical Assistance (LATA) grant funding for project backbone design is being included as part of the local match ($157,000 in-kind match, 3% of FFA Last Mile grant funds, 2% of project total). In-kind matching is being provided by the project CLEC partner, Sonic Telecom, LLC ($659,107 in-kind match, 12% of FFA Last Mile grant funds, 10% of total project funding).

Applicants proposing to combine FFA funds with funds from a separate broadband grant program must explain how FFA funds would address an identified need for additional broadband investment that is not met by existing federal or state funding commitments. Applicants must also itemize project costs, detail how funds will not be used for costs that will be reimbursed by the other federal or state funding streams and explain the public benefit that additional funds will provide.

The City of Ukiah Gigabit Fiber Project does not propose to combine FFA funds with funds from a separate broadband grant program. The current City of Ukiah CPUC Local Agency Technical Assistant (LATA) grant funds have been included as in-kind matching funds for the project to demonstrate the significant value provided by the LATA grant and the requested FFA Last Mile grant for the deployment and implementation of fiber optic broadband in the City of Ukiah. The LATA grant funds are being used for pre-project backbone preparation and design work and will not overlap with the requested Last Mile grant funds. The requested FFA Last Mile grant is the project's only opportunity for construction and implementation. Without the FFA Last Mile grant program the project would not be possible. FAA Last Mile funds will not be used for costs that will be reimbursed by other federal or state funding streams. The additional public benefit that the FFA Last Mile grant funds will provide are that they are critical and central to the project. Without the FFA Last Mile funds the project would not be possible due to lack of funds at the local level in a low-income Disadvantaged Community (below 80% of state MHI.) The following must be submitted by applicant regarding the entity:

CPA Audited/Attested Financial Statements for the last three years Financial Qualifications_CPA Audited/Attested Financial Statements for the last three years (https://cpuc2.my.salesforce.com/sfc/p/3d0000008cO7/a/3d000001vUia/TnSs041NifwYF1votvhnT2m0pZJHLk1z.qxoafDUr_Q) Pro Forma Financial Forecast for a five-year period, including a list of assumptions supporting the forecast.

Financial Qualifications_Pro Forma Financial Forecast for a five-year period, including a list of assumptions supporting the forecast. (https://cpuc2.my.salesforce.com/sfc/p/3d0000008cO7/a/3d000001x1rq/aoGBmhpI4XxphSOK9qOLav0.KlxuuCTWcxXHQvsQ6J8) Five-year annual Earnings Before Interest and Taxes (EBIT) projection for the company.

Financial Qualifications_Five-year annual Earnings Before Interest and Taxes (EBIT) projection for the company. (https://cpuc2.my.salesforce.com/sfc/p/3d0000008cO7/a/3d000001x1t3/pdX0zfy6OTcFJCH.gGYoeURoGiywzUmtrw_.qgi6QsE) CPA Audited or Attested Financial Statements will be accepted from parent companies in lieu of financial statements from subsidiaries that have no audited or attested financial statements. If applicant has been in existence for less than three years, financial statements for as long as applicant has been in existence, e.g. one or two years, will be considered.

Attach a five-year projected project business plan
Project Viability_Attach a five-year projected project business plan (https://cpuc2.my.salesforce.com/sfc/p/3d0000008cO7/a/3d000001vUki/NkBOIUeawFXgB.QNlsbX9ESf8PyY2jCrMPRgvc00Vdo) The applicant must provide information about the following:

Availability of voice service that meets California and FCC requirements for 9-1-1 service.

Sonic Telecom, LLC will and does provide customers with the option to purchase voice service that meets California and FCC requirements for 911 service.

Deployment plans for applicable Federal and state requirements for battery backup Sonic Telecom, LLC will and does provide for all applicable Federal and state requirements for battery backup.

CEQA attestation questions can be directed to the CEQA team at [email protected] (mailto:[email protected])

1. A detailed map of the project area, including, geography, terrain, arterial transportation, urban and suburban development, and that includes the existing and proposed infrastructure for the project.

Funding Sources
Financial Qualifications
Project Viability
Providing Voice Service
CEQA Attestation

CEQA Attestation_A detailed map of the project area, including, geography, terrain, arterial transportation, urban and suburban development, and that includes the existing and proposed infrastructure for the project. (https://cpuc2.my.salesforce.com/sfc/p/3d0000008cO7/a/3d000001x1vJ/ciouXwjA0wwav8N08BaFgSM4QzgSFQ6bHOwFoASW7Dk)

2. A detailed description of the project, including, project location (city, county, community, neighborhood, etc), length of project, and roadways along the project alignment.

The project boundaries of the proposed "City of Ukiah Gigabit Fiber Project" are the city limits of the City of Ukiah in Mendocino County. The project alignment length is approximately 154,000 feet, including 96% aerial fiber using City of Ukiah Electric Utility Department (EUD) poles, and 4% underground installation. The project backbone is designed to use EUD poles along major streets and roads inside the Ukiah city limits, including: State St, Main St, Low Gap Rd, Brush St, Perkins St, Clara Ave, Talmadge Rd, Airport Park Blvd, Airport Rd, Hastings Rd, Oak St, Bush St, Clay St, Jones St, and Dora St. Approximately 1 mile of the project will be undergrounded in urban, previously disturbed, areas along four major city streets: Bush St, Gobbi St, Airport Rd, and Waugh Ln.

3. A detailed description of the project setting, including, land use, geography, terrain, arterial transportation, urban and suburban development, etc.

The project setting is the more central areas of the urban environs of the City of Ukiah. Aerial fiber will be installed using City of Ukiah Electric Utility Department (EUD) poles. Approximately 10,000 feet of fiber will be undergrounded along busy urban city streets in previously disturbed areas. The geography and terrain are quite flat and urban, and work will be conducted in neighborhoods that were first disturbed and developed many years ago.

4. Provide photos of the Key Observation Points for the project and a preliminary design of the project.

CEQA Attestation_Provide photos of the Key Observation Points for the project and a preliminary design of the project. (https://cpuc2.my.salesforce.com/sfc/p/3d0000008cO7/a/3d000001wwHz/RG6iitX.85h4m5JFSmAFmqRGEC0cwd5n_9Rg_tCMsD4)

5. Assumptions used regarding which type of CEQA review is anticipated and any citations to CEQA sections and exemptions as appropriate.

The California Environmental Quality Act (CEQA) requires a lead agency, as defined, to prepare, or cause to be prepared, and certify the completion of an environmental impact report on a project that it proposes to carry out or approve that may have a significant effect on the environment or to adopt a negative declaration if it finds that the project will not have that effect. The proposed project, however, appears to meet the criteria for CEQA categorical exemptions under 14 C.C.R. § 15301 (Existing Facilities) and 14 C.C.R. § 15303(d) (New Construction). The project, consisting of linear broadband deployment in existing rights-of-way, will connect to broadband switching equipment that will serve residential, commercial and institutional customers in an urbanized area. As proposed the majority of fiber cable will be pulled through existing conduit, as well as new conduit, and overhead fiber cable will be placed on existing poles thereby limiting new disturbances and impact.

6. Does the project consist of the installation of new facilities primarily in new conduit or within new Right-of-Way or previously undisturbed ground? Yes

7. Does the project consist of minor physical changes to existing facilities or the placement of facilities in or on existing buildings? Yes

8. Will new fiber be installed in existing conduit, on existing utility poles, or placed underground? If underground, will it be located along an existing roadway?
New fiber will be installed on existing utility poles (96% and placed underground 4%). Relatively short undergrounding sections (total of 9,600 feet) will be located along existing roadways within the city limits in neighborhoods and commercial districts that have already been fully developed and disturbed.

9. If placing fiber on existing poles: will the project comply with the pole loading requirements of General Order 95? Yes, the project will be placing fiber on existing poles. The project will comply with the pole loading requirements of General Order 95.

10. Does the project involve the installation of underground or at-grade hand-holes, pull-boxes, and conduit vaults? Please also include description of anticipated construction activities.

Yes, but all vaults, handholes and boxes are anticipated to fall within the existing ROW. Final placement, numbers, locations, specifications and sizes will be determined during final design engineering (DE).

11. What is the total length of the fiber runs? What are the heights/dimensions of any facilities (e.g. conduit, poles, cabinets, dishes, antennas or vaults)? The total length of the fiber runs is approximately 154,000 feet. City of Ukiah Electric Utility Department (EDU) poles will be used in the coms space, under 22 ft in height. Approximately 10-20 cabinets will be placed along the project length, all within previously disturbed urban areas of the City of Ukiah.

12. Are any other permits required for the project? What are they (type of permit) and which agency, local, state and federal, will issue them? The following permits will be required for the project:

A CEQA Cat Ex will be filed (City of Ukiah is the lead agency).

An encroachment permit will be issued by the City of Ukiah.

An aerial installation permit will be issued by ATT.

No other permits are anticipated to be required for this project taking place entirely within the city limits of the City of Ukiah. The City of Ukiah will manage the project and will own the fiber optic broadband asset once it has been constructed and installed.A

13. Have there been any environmental studies/technical reports completed for the project? If Yes, please provide. Failure to respond to this question will be treated as answering No.

CEQA Attestation_Have there been any environmental studies/technical reports completed for the project? If Yes, please provide. (https://cpuc2.my.salesforce.com/sfc/p/3d0000008cO7/a/3d000001vVBJ/FAJHpvwLZBAPdQt9vv2fH6BFnMI8BD3vXIj6oF.EQaI) CEQA Attestation_Have there been any environmental studies/technical reports completed for the project? If Yes, please provide. (https://cpuc2.my.salesforce.com/sfc/p/3d0000008cO7/a/3d000001vVBT/1pfSiN5rTE8hh1cF9XP1PwTTFckQhmxYNrO3I4_Xxb0)

14. Is the applicant aware of any sensitive environmental habitat, scenic highway or cultural resources near the project site?

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Copyright @2023 State of California
No

15. Does the budget cover a PEA and possibly a Mitigated Negative Declaration or EA/EIR? No
Applicants must submit an affidavit affirming, under penalty of perjury, that to the best of their knowledge all the statements and representations made in the application information submitted are true and correct.

Affidavit_Applicants must submit an affidavit affirming, under penalty of perjury, that to the best of their knowledge all the statements and representations made in the application information submitted are true and correct (https://cpuc2.my.salesforce.com/sfc/p/3d0000008cO7/a/3d000001waY1/btKOYgQh_IvS_uedhkKaNHT5i.dOrXT1a9WpMM8mwDU) Any person or entity wishing to submit or file materials with a claim of confidentiality should follow the procedures set forth in CPUC General Order 66-D. (https://www.google.com/url?
sa=t&rct=j&q=&esrc=s&source=web&cd=&ved=2ahUKEwji8beopof9AhVUJX0KHYEtCHsQFnoECAoQAQ&url=https%3A%2F%2Fdocs.cpuc.ca.gov%2FPublished Docs%2FPublished%2FG000%2FM302%2FK016%2F302016447.pdf&usg=AOvVaw26_LAWaiMfQZ8U38yMQlG6) Casual claims of confidentiality are not accepted. The CPUC looks with disfavor on claims of confidentiality for entire documents.

Upload your General Order 66-D confidentiality declarations, and other documents supporting your confidentiality claims here.

Affidavit
Request for Confidentiality of Information
Check this box if your application contains information for which you are requesting confidential protection pursuant to General Order 66-D.

Resolution T-17839 DRAFT
CD/CJ2
537568960 1

PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA
Communications Division RESOLUTION T-17839
Broadband Regional Initiatives Branch September 12, 2024

R E S O L U T I O N
RESOLUTION T-17839: Approves 10 applications for grants for up to $91 million from the Last Mile Federal Funding Account in Marin, Mendocino, San Benito, Santa Cruz, and Sutter counties, providing service to 4,169 unserved locations.

I. SUMMARY
This Resolution recommends approval of 10 Last Mile Federal Funding Account grants in the amount of up to $90,998,848.

This Resolution is the fifth in a series of Resolutions approving grants to Federal Funding Account applicants for broadband infrastructure projects serving unserved areas in California. Subsequent Resolutions will be presented for Commission vote as Communications Division Staff completes its analyses of applications.

The 10 projects in this Resolution propose to make investments bringing the social, economic, civic, and public safety benefits of high-speed broadband to 4,169 unserved locations and an estimated unserved population of 13,462 in Marin, Mendocino, San Benito, Santa Cruz, and Sutter counties. An estimated total population of 31,967 people will benefit from these investments as households and businesses that already have service in these communities will benefit from greater customer choice in the broadband market. The last mile connections funded by these grants build upon the state-owned open-access Middle-Mile Broadband Initiative. An estimated 60 percent of the locations that will receive service are located in low-income areas and 2 percent are located in Disadvantaged Communities.

Staff recommends grant awards to seven entities (listed in the order in which they appear in this Resolution): Comcast Cable Communications Management, LLC (Comcast), the County of Marin, Round Valley Indian Tribes, the City of Fort Bragg, the City of Ukiah, Hankins Information Technology Inc. (Hankins Information Technology or HIT), and the California Broadband Alliance.

ATTACHMENT_2
Agenda ID #22824

Resolution T-17839 DRAFT September 12, 2024
CD/CJ2
2 Comcast is an incumbent telecommunication company offering service throughout California. The County of Marin is a county government of California. Round Valley Indian Tribes are a sovereign Tribal nation and the Round Valley Reservation is located in Mendocino County. The City of Fort Bragg and the City of Ukiah are incorporated cities located in Mendocino County. Hankins Information Technology is an independent telecommunications company offering service in Santa Clara and San Benito counties. The California Broadband Alliance is a 501(c)3 non-profit organization working on broadband access in the Central Coast that has partnered with the independent telecommunications company Surfnet Communications to apply to the Federal Funding Account.

Staff recommends the following 10 grant applications for Commission approval as shown in Table 1 below. Maps and summaries associated with each project are in the appendices.

Table 1: Summary of Grant Funding
Applicant Project Name
Estimated
Unserved
Locations
Estimated
Unserved
Units
Estimated
Unserved
Population
Estimated
Benefitting
Population
Awarded
Amount
Marin
Comcast Marin County 152 273 542 860 $289,643
County of
Marin
Marin Coastal
Hwy 1
694 828 837 851 $11,060,331
Subtotal 846 1,101 1,379 1,711 $11,349,974
Mendocino
Round
Valley
Indian
Tribes
Round Valley
Indian Tribes
Fiber-To-TheHome
500 1,099 2,651 2,719 $35,172,662
City of Fort
Bragg
Fort Bragg Gig 380 370 608 8,733 $10,300,000
City of
Ukiah
City of Ukiah
Gigabit Fiber
Project
375 872 1,635 9,142 $5,587,154
Subtotal 1,255 2,341 4,894 20,594 $51,059,816
San Benito
Hankins
Informatio
n
HIT San
Benito
1,200 1,677 4,572 6,560 $10,436,024

Resolution T-17839 DRAFT September 12, 2024
CD/CJ2
3 Technolog
y
Subtotal 1,200 1,677 4,572 6,560 $10,436,024
Santa Cruz
Surfnet Hutchinson 239 343 760 805 $2,232,995
Surfnet Mnt Bache 101 121 307 408 $990,767
Surfnet Radonich 70 78 158 210 $1,125,031
Subtotal 410 542 1,225 1,423 $4,348,793
Sutter
Comcast Sutter County 458 537 1,392 1,679 $13,804,241
Subtotal 458 537 1,392 1,679 $13,804,241
Grand Total 4,169 6,198 13,462 31,967 $90,998,848
II. BACKGROUND
California’s multi-year broadband investment package established the last mile Federal Funding Account as part of the Budget Act of 2021 and Senate Bill 1561 and invested $2 billion in the program over multiple years. The Federal Funding Account funds the construction of last mile broadband infrastructure projects in unserved areas of California. The Federal Funding Account encourages the deployment of broadband throughout the State to enable the public to access internet-based safety applications, telehealth services, emergency services, and to allow first responders to communicate with each other and collaborate during emergencies.

On April 21, 2022, the Commission issued D.22-04-055, Decision Adopting Federal Funding Account Rules. The rules and guidelines adopted in that decision included, among other items, the following: rules about projects to benefit Environmental and Social Justice Communities, affordable offers, five and ten-year price commitments, low-cost plans, project eligibility, application requirements, application objections, implementation of Public Utilities Code section 281(n) allocating funding between “rural counties” and “urban counties,” a process to reimburse grantees, a ministerial review process whereby Communications Division Staff may approve certain projects, and minimum performance standards for grantees.

The Federal Funding Account D. 22-04-055 includes requirements and preference for a number of affordability requirements including:
• Participation in the Affordable Connectivity Program or access to a “broadbased affordability program.” Given that the Affordable Connectivity Program 1 Statute 2021, Chapters 84 and 112.

Resolution T-17839 DRAFT September 12, 2024
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4 has lapsed grantees must participate in a successor program when identified by the Commission.
• A five-year price commitment, and preference for a ten-year commitment. • Preference for a low-cost plan that is $40/month or less and provides speeds of at least 50 Mbps down and 20 Mbps up.
• Preference for participation in the California and/or federal Lifeline programs (which may include bundled voice and broadband offerings).

The Federal Funding Account Decision and Appendix specify additional consideration for disadvantaged communities or Environmental and Social Justice communities.2 The Commission made available on the Federal Funding Account Public Map,3the Applicant Tool,4 and data downloads locations and census blocks meeting these definitions.5 A grant application window was opened on June 30, 2023, and closed at 4 p.m. on September 29, 2023; 484 applications were submitted. Application summaries were posted on October 23, 2023, and a 28-day objection period closed on November 20, 2023. Responses to objections were received until December 20, 2023.

Applications were holistically evaluated; required and supporting documentation and the merits of the applications were compared, and assessed, on a county basis.

Following an initial analysis, Staff sent a data request to applicants and requested additional information. Staff’s holistic evaluation included project engineering, technical feasibility and design, financial viability, cost, applicant capacity, and community need, among other factors. Staff assessed how to manage overlapping applications and applications planning to include some already-served areas in their 2 The Commission Environmental and Social Justice Action plan includes definitions and data indicators for disadvantaged or Environmental and Social Justice communities including Disadvantaged Communities defined by the California Environmental Protection Agency (CalEPA) and low-income households defined as household incomes below 80 percent of the area median income. The Commission’s Environmental and Social Justice Action Plan 2.0 is available at:
https://www.cpuc.ca.gov/-/media/cpuc-website/divisions/news-and-outreach/documents/newsoffice/key-issues/esj/esj-action-plan-v2jw.pdf 3 The Federal Funding Account Public Map is available at: https://federalfundingaccountmap.vetro.io/ 4 Registration for the Federal Funding Account Applicant Tool is available at: FFA Applicant Tool Registration
5 Disadvantaged or Environmental and Social Justice communities and individual locations, for purposes of the Federal Funding Account, include those in Disadvantaged Communities census tracts as defined by CalEPA and low-income areas in which the census block group median household income is less than or equal to 80 percent of the higher of the county or state average. This data is available for download on the Federal Funding Account Public Map page (visited June 13, 2024), https://www.cpuc.ca.gov/industries-and-topics/internet-and-phone/broadband-implementation-forcalifornia/last-mile-federal-funding-account/ffa-public-map and the Federal Funding Account Application Resources Page (visited June 13, 2024), https://www.cpuc.ca.gov/industries-andtopics/internet-and-phone/broadband-implementation-for-california/last-mile-federal-fundingaccount/ffa-application-resources-page .

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5 project area.6
Staff also evaluated how applications and groups of applications compared to competing applications in the same county.

III. APPLICATION SUMMARIES, DISCUSSION, AND RECOMMENDATIONS Marin County Summary
The allocation for projects in Marin County in D. 22-04-005 is $11,540,164. This Resolution recommends awarding two grants for projects in Marin County: one grant to Comcast and one grant to the County of Marin. The recommended grant amount for projects in Marin County is $11,349,974, which leaves a remainder of $190,190 of the allocation for Marin County.

Marin County Awards

1. Comcast, Marin County
Staff recommends the Commission approve Comcast’s application for a grant of up to $289,643 for the Marin County project.

The Marin County project proposes to serve 152 unserved locations, based on a March 2024 supplemental application filling. An estimated unserved population of 542 would be offered service. An estimated total population of 860 will benefit from these investments in and around the community of Novato. The last mile fiber project will provide up to 1,250 megabits per second symmetrical service to consumers.

The Marin County project will benefit disadvantaged or Environmental and Social Justice communities; 100 percent of the unserved locations are low-income. Comcast will provide a low-cost plan that meets the requirements in D. 22-04-055, Section 3, and has committed to maintaining the price of that plan for at least ten years. The program requires all applicants to commit to serve customers in the project area at prices not exceeding those provided in the application for five years after project completion (See Federal Funding Account Appendix A, section 7. “Performance Criteria”). Comcast’s application proposes to freeze the price for one plan, with specifications similar to the low-cost plan requirements, for 10 years and does not request a waiver of the 6 D.22-04-055 states that “households and businesses with an identified need for additional broadband infrastructure do not have to be the only ones in the service area served by an eligible broadband infrastructure project. Indeed, serving these households and businesses may require a holistic approach that provides service to a wider area, for example, in order to make ongoing service of certain households or businesses within the service area economical.”

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6 requirement to freeze all other plans offered. Accordingly, this grant is recommended for award with the understanding that Comcast serve customers in the project area at prices not exceeding those in the application for all plans in the application for five years. If Comcast cannot satisfy this requirement Comcast may request a waiver including an explanation of why a waiver is being requested and a rationale for why a waiver should be granted.

The proposed project will cost an estimated $573,607, of which the Federal Funding Account will fund 50 percent of costs. Comcast will provide the rest of the costs through matching funds.

Staff determined that the applicant and the project are financially viable, and the applicant’s engineering meets the program standards. The applicant demonstrated the administrative, technical, and operational capacity to provide broadband service at the scale of this project.

This application received no objections.

No Federal Funding Account Public Map comments were submitted in Marin County.7 The Marin County project area’s unserved locations were evaluated in light of updated Federal Communications Commission and Federal Funding Account unserved data (as of June 30, 2023). In response to objections and this data, the number of unserved locations is unchanged at 152, the project area is unchanged, and the total grant amount is unchanged. The specific locations to be provided service will be updated and reconciled with the Broadband Serviceable Location Fabric after detailed engineering and project design, and the grant amount may be reduced consistent with a reduction in the number of locations
The following submitted letters of support for this application: Marin County District 5 Supervisor Eric Lucan, Mayor of Novato Susan Wernick, the City Manager of Novato, the Novato Chamber of Commerce, Equality California, the Hispanic Chamber of Commerce of Marin County, the North Bay Leadership Council, the Chicano Latino Leadership Project, the Latino Council, and the San Rafael Chamber of Commerce.

The proposed project provides the public safety benefits of reliable broadband infrastructure. This project is not located in a High Fire Threat District and does not present safety concerns. This project will connect to Comcast’s middle-mile infrastructure.
7 See Federal Funding Account Public Map, https://federalfundingaccountmap.vetro.io/ (visited July 17, 2024).

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7 Based on the information provided to the Energy Division, Staff confirms that Comcast’s Marin County project meets the criteria for the California Environmental Quality Act (CEQA) categorical exemptions under 14 California Code of Regulations (C.C.R.) Section 15301 (Existing Facilities), 14 C.C.R Section 15303 (New Construction or Conversion of Small Structures), and 14 C.C.R Section 15304 (Minor Alterations to Land). Thus, Comcast’s Marin County project is categorically exempt from CEQA review and the Commission may authorize funds for construction activities.

Comcast and the Marin County project comply with all requirements for approval in D. 22-04-055. The Communications Division recommends that the Commission approve Comcast’s application for a grant of up to $289,643 for the Marin County project subject to the above conditions.

2. County of Marin, Marin Coastal Hwy 1
Staff recommends the Commission approve the County of Marin’s application for a grant of up to $11,060,331 for the Marin Coastal Hwy 1 project.

The Marin Coastal Hwy 1 project proposes to serve an estimated 694 unserved locations, based on a March 2024 supplemental application filing. An estimated unserved population of 837 would be offered service. An estimated total population of 851 will benefit from these investments in the communities of Muir Beach, Tomales, and Dillon Beach. The last mile fiber project will provide up to one gigabit per second symmetrical service to consumers. The County of Marin will provide a low-cost plan that meets the standards set in D.22-04-055.

The proposed project will cost an estimated $11,060,331, of which the Federal Funding Account will fund 100 percent of costs.

Staff determined that the applicant and the project are financially viable, and the applicant’s engineering meets the program standards. The applicant demonstrated the administrative, technical, and operational capacity to provide broadband service at the scale of this project.

This application received no objections.

No Federal Funding Account Public Map comments were submitted in Marin County.8 The Marin Coastal Hwy 1 project area’s unserved locations were evaluated in light of updated Federal Communications Commission and Federal Funding Account unserved data (as of June 30, 2023). In response to this data, the number of unserved locations 8 See Federal Funding Account Public Map, https://federalfundingaccountmap.vetro.io/ (visited July 17, 2024).

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8 remains unchanged at 694 unserved locations, the project area is unchanged, and the total grant amount is unchanged. The specific locations to be provided service will be updated and reconciled with the Broadband Serviceable Location Fabric after detailed engineering and project design, and the grant amount may be reduced consistent with a reduction in the number of locations
The following submitted letters of support for this application: The Marin County Fire Department, Shoreline Unified School District, a trustee of the Bolinas-Stinson Unified School District, the Marin County Sheriff’s Office, West Marin Fund, and the Marin County Free Library. Independent Internet Service Providers QWK.net, SUMOFIBER, Advanced Stream, and Anthem Broadband have submitted letters of support indicating an interest in connecting to the open access infrastructure that Marin County proposes to build.

The proposed project provides the public safety benefits of reliable broadband infrastructure and will benefit locations located in High Fire Threat District 2. This project will connect to the open-access Middle-Mile Broadband Initiative.

Based on the information provided to the Energy Division, Staff confirms the Marin Coastal Hwy 1 project meets the criteria for the CEQA categorical exemptions under 14 C.C.R. Section 15301 (Existing Facilities), 14 C.C.R. Section 15303 (New Construction or Conversion of Small Structures), and 14 C.C.R. Section 15304 (Minor Alterations to Land). Thus, the Marin Coastal Hwy 1 project is categorically exempt from CEQA review and the Commission may authorize funds for construction activities.

The County of Marin and the Marin Coastal Hwy 1 project comply with all requirements for approval in D. 22-04-055. The Communications Division recommends that the Commission approve the County of Marin’s application for a grant of up to $11,060,331 for the Marin Coastal Hwy 1 project subject to the above conditions.

Mendocino County Summary
The allocation for projects in Mendocino County in D. 22-04-005 is $57,430,812. This Resolution recommends awarding three grants for projects in Mendocino County: one grant to Round Valley Indian Tribes, one grant to the City of Fort Bragg, and one grant to the City of Ukiah. The recommended grant amount for projects in Mendocino County is $51,059,816, which leaves a remainder of $6,370,996 of the allocation for Mendocino County.

Mendocino County Awards

1. Round Valley Indian Tribes, Round Valley Indian Tribes Fiber-To-The-Home

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9 Staff recommends the Commission approve the Round Valley Indian Tribes’ application for a grant of up to $35,172,662 for the Round Valley Indian Tribes Fiber-ToThe-Home project.

The Round Valley Indian Tribes Fiber-To-The-Home project proposes to serve 500 unserved locations based on June 2024 reductions of the project area submitted by Round Valley Indian Tribes. An estimated unserved population of 2,651 would be offered service. An estimated total population of 2,719 will benefit from these investments in and around the Round Valley Reservation. The last mile fiber project will provide up to one gigabit per second symmetrical service to consumers.

The Round Valley Indian Tribes Fiber-To-The-Home project will benefit disadvantaged or Environmental and Social Justice communities; 100 percent of the unserved locations are low-income. The Round Valley Indian Tribes will provide a low-cost plan that meets the standards set in D.22-04-055.

The proposed project will cost an estimated $50,172,025, of which the Federal Funding Account will fund approximately 70 percent of costs.

Staff determined that the applicant and the project are financially viable, and the applicant’s engineering meets the program standards. The applicant demonstrated the administrative, technical, and operational capacity to provide broadband service at the scale of this project.

This application received no objections.

One Federal Funding Account Public Map comment was submitted in Mendocino County, which did not pertain to the eligibility of locations in the project area.9 The Round Valley Indian Tribes Fiber-To-The-Home project area’s unserved locations were evaluated in light of updated Federal Communications Commission and Federal Funding Account unserved data (as of June 30, 2023). In response to comments and this data, and Round Valley Indian Tribes’ reduction of their project area, the number of unserved locations is reduced from 1,206 to 500, the project area is reduced to 33 square miles, and the total grant amount is revised from $41,537,274 to $35,172,662. The specific locations to be provided service will be updated and reconciled with the Broadband Serviceable Location Fabric after detailed engineering and project design, and the grant amount may be reduced consistent with a reduction in the number of locations. 9 See Federal Funding Account Public Map, https://federalfundingaccountmap.vetro.io/ (visited July 17, 2024).

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10 The following submitted letters of support for this application: The Round Valley Indian Tribes Tribal Council, Congressperson Jared Huffman, State Senator Mike McGuire.

The proposed project provides the public safety benefits of reliable broadband infrastructure and will benefit households located in High Fire Threat District 2. This project will connect to the open-access Middle-Mile Broadband Initiative. This project includes $2,597,992 to deploy approximately 51 miles of open-access middle-mile fiber and backhaul fiber, and to connect them to the Middle Mile Broadband Initiative.

Based on the information received, the Commission’s Energy Division has determined that this project has not met the requirements of CEQA categorial exemption at this time. The Round Valley Indian Tribes must comply with the CEQA requirements discussed in the appendices. If the Round Valley Indian Tribes provide additional documentation sufficient to justify a staff determination of CEQA exemption, then the project can be exempted by letter from the Communications Division Director or the director’s delegate or designee.

The Round Valley Indian Tribes and the Round Valley Indian Tribes’ Fiber-To-TheHome project comply with all requirements for approval in D. 22-04-055. The Communications Division recommends that the Commission approve the Round Valley Indian Tribes’ application for a grant of up to $35,172,662 for the Round Valley Indian Tribes’ Fiber-To-The-Home project subject to the above conditions.

2. City of Fort Bragg, Fort Bragg Gig
Staff recommends the Commission approve the City of Fort Bragg’s application for a grant of up to $10,300,000 for the Fort Bragg Gig project.

The Fort Bragg Gig project proposes to serve an estimated 380 unserved locations based on a March 2024 supplemental application filing. An estimated unserved population of 608 would be offered service. An estimated total population of 8,733 will benefit from these investments in the City of Fort Bragg. The last mile fiber project will provide up to one gigabit per second symmetrical service to consumers.

The Fort Bragg Gig project will benefit disadvantaged or Environmental and Social Justice communities; 92 percent of the unserved locations are low-income. The City of Fort Bragg will provide a low-cost plan that meets the standards set in D.22-04-055.

The proposed project will cost an estimated $14,700,000, of which the Federal Funding Account will fund approximately 70 percent of costs.

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11 Staff determined that the applicant and the project are financially viable, and the applicant’s engineering meets the program standards. The applicant demonstrated the administrative, technical, and operational capacity to provide broadband service at the scale of this project.

This application received one objection, and the City of Fort Bragg responded to the objection. Staff verified that the locations in the project area are not reliably served as defined in D.22-04-055 by the objector. The City of Fort Bragg’s proposed project area was not modified in response to objections.

One Federal Funding Account Public Map comment was submitted in Mendocino County, which did not pertain to the eligibility of locations in the project area.10 The Fort Bragg Gig project area’s unserved locations and objection were evaluated in light of updated Federal Communications Commission and Federal Funding Account unserved data (as of June 30, 2023). In response to objections, comments, and this data, the number of unserved locations is unchanged at 380, the project area is unchanged, and the total grant amount is unchanged. The specific locations to be provided service will be updated and reconciled with the Broadband Serviceable Location Fabric after detailed engineering and project design, and the grant amount may be reduced consistent with a reduction in the number of locations.

The following submitted letters of support for this application: The Fort Bragg Fire Protection Authority, the Fort Bragg Unified School District, the Fort Bragg Police Department, and Adventist Health Mendocino Coast.

The proposed project provides the public safety benefits of reliable broadband infrastructure. This project is not located in a High Fire Threat District and does not present safety concerns. This project will connect to the open-access Middle-Mile Broadband Initiative.

Based on the information provided to the Energy Division, Staff confirms the Fort Bragg Gig project meets the criteria for the CEQA categorical exemptions under 14 C.C.R.

Section 15301 (Existing Facilities) and 14 C.C.R Section 15304 (Minor Alterations to Land). Thus, the Fort Bragg Gig project is categorically exempt from CEQA review and the CPUC may authorize funds for construction activities.

The City of Fort Bragg and the Fort Bragg Gig project comply with all requirements for approval in D. 22-04-055. The Communications Division recommends that the Commission approve the City of Fort Bragg’s application for a grant of up to $10,300,000 for the Fort Bragg Gig project subject to the above conditions. 10 See Federal Funding Account Public Map, https://federalfundingaccountmap.vetro.io/ (visited July 17, 2024).

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12 3. City of Ukiah, City of Ukiah Gigabit Fiber Project Staff recommends the Commission approve the City of Ukiah’s application for a grant of up to $5,587,154 for the City of Ukiah Gigabit Fiber Project.

The City of Ukiah Gigabit Fiber Project proposes to serve an estimated 375 unserved locations based on a March 2024 supplemental application filing. An estimated unserved population of 1,635 would be offered service. An estimated total population of 9,142 will benefit from these investments in the City of Ukiah. The last mile fiber project will provide up to ten gigabits per second symmetrical service to consumers.

The City of Ukiah Gigabit Fiber Project will benefit disadvantaged or Environmental and Social Justice communities; 88 percent of the unserved locations are low-income.

The City of Ukiah will provide a low-cost plan that meets the standards set in D.22-04- 055.

The proposed project will cost an estimated $6,403,261, of which the Federal Funding Account will fund approximately 87 percent of costs.

Staff determined that the applicant and the project are financially viable, and the applicant’s engineering meets the program standards. The applicant demonstrated the administrative, technical, and operational capacity to provide broadband service at the scale of this project.

This application received one objection and the City of Ukiah responded to the objection. Staff determined that the objection concerned some locations outside the project area and verified that the locations in the project area are not reliably served as defined in D.22-04-055. The City of Ukiah’s proposed project area was not modified in response to objections.

One Federal Funding Account Public Map comment was submitted in Mendocino County, which did not pertain to the eligibility of locations in the project area.11 The project area for the City of Ukiah Gigabit Fiber Project unserved locations and objection were evaluated in light of updated Federal Communications Commission and Federal Funding Account unserved data (as of June 30, 2023). In response to objections, comments, and this data, the number of unserved locations is unchanged at 375, the project area is unchanged, and the total grant amount is unchanged. The specific locations to be provided service will be updated and reconciled with the Broadband Serviceable Location Fabric after detailed engineering and project design, and the grant amount may be reduced consistent with a reduction in the number of locations. 11 See Federal Funding Account Public Map, https://federalfundingaccountmap.vetro.io/ (visited July 17, 2024).

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13 The following submitted letters of support for this application: State Senator Mike McGuire, Assemblymember Jim Wood, Ukiah Mayor Mari Rodin, Vecinos en Acción, North Coast Opportunities, and the Greater Ukiah Business and Tourism Alliance.

The proposed project provides the public safety benefits of reliable broadband infrastructure. This project is not located in a High Fire Threat District and does not present safety concerns. This project will connect to the open-access Middle-Mile Broadband Initiative.

Based on the information received, the Commission’s Energy Division has determined that this project has not met the requirements of CEQA categorial exemption at this time. The City of Ukiah must comply with the CEQA requirements discussed in the appendices. If the City of Ukiah provides additional documentation sufficient to justify a staff determination of CEQA exemption, then the project can be exempted by letter from the Communications Division Director or the director’s delegate or designee.

The City of Ukiah and the City of Ukiah Gigabit Fiber Project comply with all requirements for approval in D. 22-04-055. The Communications Division recommends that the Commission approve the City of Ukiah application for a grant of up to $5,587,154 for the City of Ukiah Gigabit Fiber Project subject to the above conditions.

San Benito County Summary
The allocation for projects in San Benito County in D. 22-04-005 is $10,436,025. This Resolution recommends awarding one grant to Hankins Information Technology for a project in San Benito County. The recommended grant amount for projects in San Benito County is $10,436,024.

San Benito County Awards

1. Hankins Information Technology, HIT San Benito
Staff recommends the Commission approve Hankins Information Technology’s application for a grant of up to $10,436,024 for the HIT San Benito project.

The HIT San Benito project proposes to serve an estimated 1,200 unserved locations based on a March 2024 supplemental application filing. An estimated unserved population of 4,572 would be offered service. An estimated total population of 6,560 will benefit from these investments in the communities of Hollister, San Juan, and Aromas. The last mile fiber project will provide up to ten gigabits per second symmetrical service to consumers.

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14 The HIT San Benito project will benefit disadvantaged or Environmental and Social Justice communities; 55 percent of the unserved locations are low-income. Hankins Information Technology has committed to maintaining its prices for at least ten years and will provide a low-cost plan that meets the standards set in D.22-04-055.

The proposed project will cost an estimated $11,114,635, of which the Federal Funding Account will fund approximately 94 percent of costs.

Staff determined that the applicant and the project are financially viable, and the applicant’s engineering meets the program standards. The applicant demonstrated the administrative, technical, and operational capacity to provide broadband service at the scale of this project.

This application received two objections. Staff verified that the served locations in the project area are necessary for the project to connect unserved locations. Hankins Information Technology’s proposed project area was not modified in response to objections ; the Federal Final Rule12 and D.22-04-055 13 allow projects serving unserved locations to include served locations to make the project viable.

No Federal Funding Account Public Map comments were submitted in San Benito County.14 The HIT San Benito project area’s unserved locations and objections were evaluated in light of updated Federal Communications Commission and Federal Funding Account unserved data (as of June 30, 2023). In response to objections and this data, the number of unserved locations is unchanged at 1,200, the project area is unchanged, and the total grant amount is unchanged. The specific locations to be provided service will be updated and reconciled with the Broadband Serviceable Location Fabric after detailed engineering and project design, and the grant amount may be reduced consistent with a reduction in the number of locations.

The San Benito County Office of Education Chief Technology Officer submitted a letter of support for this application.

The proposed project provides the public safety benefits of reliable broadband infrastructure and will benefit households located in High Fire Threat District 2. This project will connect to the open-access Middle-Mile Broadband Initiative. 12 Department of the Treasury, Final Rule, Coronavirus State and Local Fiscal Recovery Funds, 31 C.F.R.

Part 35, 87 FR 4338-4454 (January 27, 2022) (Final Rule), available at:
https://www.federalregister.gov/documents/2022/01/27/2022-00292/coronavirus-state-and-localfiscal-recovery-funds. 13 D.22-04-055, Appendix A, Section 2, p. A-5.
14 See Federal Funding Account Public Map, https://federalfundingaccountmap.vetro.io/ (visited July 18, 2024).

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15 Based on the information received, the Commission’s Energy Division has determined that this project has not met the requirements of CEQA categorial exemption at this time. Hankins Information Technology must comply with the CEQA requirements discussed in the appendices. If Hankins Information Technology provides additional documentation sufficient to justify a staff determination of CEQA exemption, then the project can be exempted by letter from the Communications Division Director or the director’s delegate or designee.

Hankins Internet Technology and the HIT San Benito project comply with all requirements for approval in D. 22-04-055. The Communications Division recommends that the Commission approve Hankins Information Technology’s application for a grant of up to $10,436,025 for the HIT San Benito project subject to the above conditions.

Santa Cruz County Summary
The allocation for projects in Santa Cruz County in D. 22-04-005 is $10,323,008. This Resolution recommends awarding three grants to the California Broadband Alliance, which has partnered with the applicant Surfnet Communications, for projects in Santa Cruz County. The recommended grant amount for projects in Santa Cruz County is $4,348,793, which leaves a remainder of $5,974,215 of the allocation for Santa Cruz County.

Santa Cruz County Awards

1. Surfnet Communications, Hutchinson
Staff recommends the Commission approve Surfnet Communications’ application for a grant of up to $2,232,995 to the California Broadband Alliance for the Hutchinson project.

The Hutchinson project proposes to serve an estimated 239 unserved locations based on a March 2024 supplemental application filing. An estimated unserved population of 760 would be offered service. An estimated total population of 805 will benefit from these investments in the community of Hutchinson. The last mile fiber project will provide up to one gigabit per second symmetrical service to consumers.

The California Broadband Alliance will be the grant recipient and owner of the project infrastructure. The California Broadband Alliance will enter into an agreement with the applicant, Surfnet Communications, who will manage the project construction. After the project is complete, Surfnet Communications will lease access to the infrastructure from the California Broadband Alliance.

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16 Surfnet Communications has committed to maintaining its prices for at least ten years and will provide a low-cost plan that meets the standards set in D.22-04-055.

The proposed project will cost an estimated $2,232,995, of which the Federal Funding Account will fund 100 percent of costs.

Staff determined that the applicant and the project are financially viable, and the applicant’s engineering meets the program standards. The applicant demonstrated the administrative, technical, and operational capacity to provide broadband service at the scale of this project.

This application received one objection, and Surfnet Communications responded to the objection. Staff determined that the objection concerned locations outside the project area. Surfnet Communications’ proposed project area was not modified in response to objections.

No Federal Funding Account Public Map comments were submitted in Santa Cruz County.15 The Hutchinson project area’s unserved locations and objection were evaluated in light of updated Federal Communications Commission and Federal Funding Account unserved data (as of June 30, 2023). In response to objections and this data, the number of unserved locations is unchanged at 239, the project area is unchanged, and the total grant amount is unchanged. The specific locations to be provided service will be updated and reconciled with the Broadband Serviceable Location Fabric after detailed engineering and project design, and the grant amount may be reduced consistent with a reduction in the number of locations.

The following submitted letters of support for this application: the Santa Cruz County Director of Information Services, the Central Coast Broadband Consortium, and the Monterey Bay Economic Partnership.

The proposed project provides the public safety benefits of reliable broadband infrastructure and will benefit households located in a High Fire Threat District 3. This project will connect to the open-access Middle-Mile Broadband Initiative.

Based on the information received, the Commission’s Energy Division has determined that this project has not met the requirements of CEQA categorial exemption at this time. Surfnet Communications and the California Broadband Alliance must comply with the CEQA requirements discussed in the appendices. If Surfnet Communications or the California Broadband Alliance provide additional documentation sufficient to 15 See Federal Funding Account Public Map, https://federalfundingaccountmap.vetro.io/ (visited July 18, 2024).

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17 justify a staff determination of CEQA exemption, then the project can be exempted by letter from the Communications Division Director or the director’s delegate or designee.

The California Broadband Alliance, Surfnet Communications and the Hutchinson project comply with all requirements for approval in D. 22-04-055. The Communications Division recommends that the Commission approve Surfnet Communications’ application for a grant of up to $2,232,995 to the California Broadband Alliance for the Hutchinson project subject to the above conditions.

2. Surfnet Communications, Mnt Bache
Staff recommends the Commission approve Surfnet Communications’ application for a grant of up to $990,767 to the California Broadband Alliance for the Mnt Bache project.

The Mnt Bache project proposes to serve an estimated 101 unserved locations based on a March 2024 supplemental application filing. An estimated unserved population of 307 would be offered service. An estimated total population of 408 will benefit from these investments along Mt Bache Road in unincorporated Santa Cruz County. The last mile fiber project will provide up to one gigabit per second symmetrical service to consumers.

The California Broadband Alliance will be the grant recipient and owner of the project infrastructure. The California Broadband Alliance will enter into an agreement with the applicant, Surfnet Communications, who will manage the project construction. After the project is complete, Surfnet Communications will lease access to the infrastructure from the California Broadband Alliance.

Surfnet Communications has committed to maintaining its prices for at least ten years and will provide a low-cost plan that meets the standards set in D.22-04-055.

The proposed project will cost an estimated $990,767, of which the Federal Funding Account will fund 100 percent of costs.

Staff determined that the applicant and the project are financially viable, and the applicant’s engineering meets the program standards. The applicant demonstrated the administrative, technical, and operational capacity to provide broadband service at the scale of this project.

This application received one objection, and Surfnet Communications responded to the objection. Staff determined that the objection concerned locations outside the project area. Surfnet Communications’s proposed project area was not modified in response to objections.

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18 No Federal Funding Account Public Map comments were submitted in Santa Cruz County.16 The Mnt Bache project area’s unserved locations and objection were evaluated in light of updated Federal Communications Commission and Federal Funding Account unserved data (as of June 30, 2023). In response to objections and this data, the number of unserved locations is unchanged at 101, the project area is unchanged, and the total grant amount is unchanged. The specific locations to be provided service will be updated and reconciled with the Broadband Serviceable Location Fabric after detailed engineering and project design, and the grant amount may be reduced consistent with a reduction in the number of locations.

The following submitted letters of support for this application: the Santa Cruz County Director of Information Services, the Central Coast Broadband Consortium, and the Monterey Bay Economic Partnership.

The proposed project provides the public safety benefits of reliable broadband infrastructure and will benefit households located in High Fire Threat District 3. This project will connect to the open-access Middle-Mile Broadband Initiative.

Based on the information received, the Commission’s Energy Division has determined that this project has not met the requirements of CEQA categorial exemption at this time. The California Broadband Alliance and Surfnet Communications must comply with the CEQA requirements discussed in the appendices. If the California Broadband Alliance or Surfnet Communications provide additional documentation sufficient to justify a staff determination of CEQA exemption, then the project can be exempted by letter from the Communications Division Director or the director’s delegate or designee.

The California Broadband Alliance, Surfnet Communications, and the Mnt Bache project comply with all requirements for approval in D. 22-04-055. The Communications Division recommends that the Commission approve Surfnet Communications’ application for a grant of up to $990,767 to the California Broadband Alliance for Mnt Bache subject to the above conditions.

3. Surfnet Communications, Radonich
Staff recommends the Commission approve Surfnet Communications’ application for a grant of up to $1,125,031 to the California Broadband Alliance for the Radonich project.

The Radonich project proposes to serve an estimated 70 unserved locations based on a March 2024 supplemental application filing. An estimated unserved population of 158 16 See Federal Funding Account Public Map, https://federalfundingaccountmap.vetro.io/ (visited July 18 2024).

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19 would be offered service. An estimated total population of 210 will benefit from these investments in and around the community of Radonich. The last mile fiber project will provide up to one gigabit per second symmetrical service to consumers.

The California Broadband Alliance will be the grant recipient and owner of the project infrastructure. The California Broadband Alliance will enter into an agreement with the applicant, Surfnet Communications, who will manage the project construction. After the project is complete, Surfnet Communications will lease access to the infrastructure from the California Broadband Alliance.

Surfnet Communications has committed to maintaining its prices for at least ten years and will provide a low-cost plan that meets the standards set in D.22-04-055.

The proposed project will cost an estimated $1,125,031, of which the Federal Funding Account will fund 100 percent of costs.

Staff determined that the applicant and the project are financially viable, and the applicant’s engineering meets the program standards. The applicant demonstrated the administrative, technical, and operational capacity to provide broadband service at the scale of this project.

This application received two objections and Surfnet Communications responded to the objections. Staff determined that one objection concerned locations outside the project area. Staff determined that the other objection concerned locations in the project area; however, passing the served locations in the project area is geographically necessary for the project to connect unserved locations. Surfnet Communications’ proposed project area was not modified in response to objections.

No Federal Funding Account Public Map comments were submitted in Santa Cruz County.17 The Radonich project area’s unserved locations and objections were evaluated in light of updated Federal Communications Commission and Federal Funding Account unserved data (as of June 30, 2023). In response to objections and this data, the number of unserved locations is unchanged at 70, the project area is unchanged, and the total grant amount is unchanged. The specific locations to be provided service will be updated and reconciled with the Broadband Serviceable Location Fabric after detailed engineering and project design, and the grant amount may be reduced consistent with a reduction in the number of locations.
17 See Federal Funding Account Public Map, https://federalfundingaccountmap.vetro.io/ (visited July 18, 2024).

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20 The following submitted letters of support for this application: The Santa Cruz County Director of Information Services, the Central Coast Broadband Consortium, and the Monterey Bay Economic Partnership.

The proposed project provides the public safety benefits of reliable broadband infrastructure and will benefit households located in High Fire Threat District 3. This project will connect to the open-access Middle-Mile Broadband Initiative.

Based on the information received, the Commission’s Energy Division has determined that this project has not met the requirements of CEQA categorial exemption at this time. The California Broadband Alliance and Surfnet Communications must comply with the CEQA requirements discussed in the appendices. If Surfnet Communications or the California Broadband Alliance provide additional documentation sufficient to justify a staff determination of CEQA exemption, then the project can be exempted by letter from the Communications Division Director or the director’s delegate or designee.

The California Broadband Alliance, Surfnet Communications, and the Radonich project comply with all requirements for approval in D. 22-04-055. The Communications Division recommends that the Commission approve Surfnet Communications’ application for a grant of up to $1,125,031 to the California Broadband Alliance for the Radonich project subject to the above conditions.

Sutter County Summary
The allocation for projects in Sutter County in D. 22-04-005 is $20,397,554. This Resolution recommends awarding one grant to Comcast for a project in Sutter County.

The recommended grant amount for projects in Sutter County is $13,804,241, which leaves a remainder of $6,593,313 of the allocation for Sutter County.

1. Comcast, Sutter County
Staff recommends the Commission approve Comcast’s application for a grant of up to $13,804,241 for the Sutter County project.

The Sutter County project proposes to serve 458 unserved locations based on a March 2024 supplemental application filing. An estimated unserved population of 1,392 would be offered service. An estimated total population of 1,679 will benefit from these investments in and around the community of Yuba City and Live Oak. The last mile fiber project will provide up to 1,250 megabits per second symmetrical service to consumers.

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21 The Sutter County project will benefit disadvantaged or Environmental and Social Justice communities; 99 percent of the unserved locations are low-income. Comcast will provide a low-cost plan that meets the requirements in D. 22-04-055, Section 3, and has committed to maintaining the price of that plan for at least ten years. The program requires all applicants to commit to serve customers in the project area at prices not exceeding those provided in the application for five years after project completion (See Federal Funding Account Appendix A, section 7. “Performance Criteria”). Comcast’s application proposes to freeze the price for one plan for 10 years and does not request a waiver of the requirement to freeze all other plans offered. Accordingly, this grant is awarded with the understanding that Comcast serve customers in the project area at prices not exceeding those in the application for all plans in the application for five years. If Comcast cannot satisfy this requirement Comcast may request a waiver including an explanation of why a waiver is being requested and a rationale for why a waiver should be granted.

The proposed project will cost an estimated $13,804,241, of which the Federal Funding Account will fund an estimated 100 percent of costs.

Staff determined that the applicant and the project are financially viable, and the applicant’s engineering meets the program standards. The applicant demonstrated the administrative, technical, and operational capacity to provide broadband service at the scale of this project.

This application received two objections and Comcast responded to the objections. Staff determined that one objection was incomplete. Staff determined that the other objector did not provide sufficient documentation to substantiate a claim that it would serve the project area. Comcast’s proposed project area was not modified in response to objections.

No Federal Funding Account Public Map comments were submitted in Sutter County.18 The Sutter County project area’s unserved locations and objections were evaluated in light of the updated Federal Communications Commission and Federal Funding Account unserved data (as of June 30, 2023). In response to the objections and this data, the number of unserved locations is unchanged at 458, the project area is unchanged, and the total grant amount is unchanged. The specific locations to be provided service will be updated and reconciled with the Broadband Serviceable Location Fabric after detailed engineering and project design, and the grant amount may be reduced consistent with a reduction in the number of locations. 18 See Federal Funding Account Public Map, https://federalfundingaccountmap.vetro.io/ (visited July 18, 2024).

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22 The following submitted letters of support for the project: Assemblymember James Gallagher, the Sutter County Board of Supervisors, the Sacramento Metro Chamber Foundation, the Yuba-Sutter Economic Development Corporation, Equality California, the North Central Counties Consortium, the Parent Institute for Quality Education, the Chicano Latino Youth Leadership Project, and Valley Vision.

The proposed project will provide the public safety benefits of reliable broadband infrastructure. This project is not located in a High Fire Threat District and presents no safety concerns. This project will connect to Comcast’s middle-mile infrastructure.

Based on the information received, the Commission’s Energy Division has determined that this project has not met the requirements of CEQA categorial exemption at this time. Comcast must comply with the CEQA requirements discussed in the appendices.

If Comcast provides additional documentation sufficient to justify a staff determination of CEQA exemption, then the project can be exempted by letter from the Communications Division Director or the director’s delegate or designee.

Comcast and the Sutter County project comply with all requirements for approval in D. 22-04-055. The Communications Division recommends that the Commission approve Comcast’s application for a grant of up to $13,804,241 for the Sutter County project subject to the above conditions.

Comments
In compliance with Public Utilities Code Section 311(g)(1), a Notice of Availability of this draft resolution was e-mailed on August 8, 2024, informing all parties on the CASF Distribution List and the R. 20-09-001 Service List of the availability of the draft of this Resolution, and of the opportunity to comment, at the Commission’s website at http://www.cpuc.ca.gov/.

IV. COMPLIANCE REQUIREMENTS
Awardees are required to comply with all the guidelines, requirements, and conditions associated with the grant of Federal Funding Account awards as specified in D.22-04- 055. All Awardees are also required to sign a consent form agreeing to the terms and conditions of the Federal Funding Account. Such compliance includes, but is not limited to, the items noted below.

A. Deployment Schedule: All CEQA-exempt projects must be completed within 18 months, and all other projects shall be completed within 24 months after receiving authorization to construct.

B. Pricing: By accepting these awards, the Awardees commit to serve customers in the project area at prices not exceeding those provided in the application for five years after

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23 project completion. Awardees who committed not to increase prices for a period of ten years in their application commit to serve customers in the project area for ten years after project completion. Should the need arise for grant recipients to adjust prices due to externalities outside their control (e.g. inflation), grant recipients may file and serve, on the R. 20-09-001 proceeding service list, a request to modify this requirement with the Communications Division.

C. Speed and Latency: All households in the proposed project areas must be offered a broadband internet service plan with speeds of at least 100 megabits per second (Mbps) download and 100 Mbps upload, with not more than 100 milliseconds of latency.

D. Affordability: All projects shall participate in the Affordable Connectivity Program (ACP) or otherwise provide access to a broad-based affordability program to lowincome customers in the proposed service area of the broadband infrastructure that provides benefits to households commensurate with those provided under the ACP.

Should the ACP program end, the Commission will identify a successor low-income subsidy program in which participants must participate. Awardees must participate in a successor to the ACP identified after the grant is awarded.

E. Project Audit: The Commission has the right to conduct any necessary audit, verification, and discovery during project implementation/construction to ensure that Federal Funding Account funds are spent in accordance with Commission approval. All recipients of federally funded grants exceeding $750,000 will need to include a budget for a federal audit.19
F. Reporting Requirements: Numerous post-award reports are required. In summary, these include monthly contractor reports (if applicable), quarterly progress reports, and a final completion report.20
G. Prevailing Wage: Section 1720 of the California Labor Code requires Federal Funding Account projects be subject to prevailing wage requirements.21 Applicants accepting Federal Funding Account awards are committing to follow state prevailing wage requirements with regards to their projects.
19 Treasury, Compliance and Reporting Guidance State and Local Fiscal Recovery Funds (November 15, 2021 Version 2.1), available at https://home.treasury.gov/system/files/136/SLFRF-Compliance-andReporting-Guidance.pdf. 20 D. 22-04-055, Appendix A, Section 14.
21 D.22-054-055, Section 13.2, page 57.

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24 H. Payments to Federal Funding Account Recipients: The Commission may reimburse Awardees’ expenses in accordance with Public Utilities Code Section 281(n)(2), D.22-04- 055, and the Appendix. Requests for payments may be submitted as the project is progressively deployed. The prerequisite for first payment is the submittal of a progress report to the Commission showing that a minimum of ten percent of the project (as determined by budget spent) has been completed. Subsequent payments may be made upon at least 25-percent intervals, with the final 15 percent payment request (from 85 to 100 percent) not eligible for payment without an approved completion report. Payments are based on submitted receipts, invoices and other supporting documentation showing expenditures incurred for the project in accordance with the approved Federal Funding Account budget included in the awardee’s application.

FINDINGS OF FACT

1. California’s multi-year broadband infrastructure investments in the Budget Act of 2021 and Senate Bill 156 (Statutes 2021, Chapters 84 and 112) provided $2 billion over multiple years to the Last Mile Federal Funding Account to facilitate, via reimbursement, construction of last mile broadband infrastructure projects to connect unserved Californians.

2. On April 21, 2022, the Commission approved Decision 22-04-055, which along with the Federal Final Rule, established the Last Mile Federal Funding Account and set program rules.

3. The Communications Division opened an application window for the Federal Funding Account on June 30, 2023, and closed it on September 29, 2023. Applicants submitted 484 applications before the deadline. Application summaries were posted on October 23, 2023, and a 28-day objection window closed on November 20, 2023.

Responses to objections were received until December 20, 2023.

4. Comcast submitted applications for the Marin County, and Sutter County projects on September 29, 2023.

5. The County of Marin submitted an application for Marin Coastal Hwy 1 on September 29, 2023.

6. Round Valley Indian Tribes submitted an application for the Round Valley Indian Tribes Fiber-To-The-Home project on September 29, 2023, and revised their application to reduce the project area on June 12, 2024.

7. The City of Fort Bragg submitted an application for the Fort Bragg Gig project on September 29, 2023.

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25 8. The City of Ukiah submitted an application for the City of Ukiah Gigabit Fiber Project on September 28, 2023.

9. Hankins Information Technology submitted an application for the HIT San Benito project on September 28, 2023.

10. Surfnet Communications submitted applications for the Hutchinson, Mnt Bache, and Radonich projects on September 29, 2023.

11. The Commission has determined that Comcast’s Sutter County project is not categorically exempt from California Environmental Quality Act review at this time.

12. The Commission has determined that Comcast’s Marin County project is categorically exempt from California Environmental Quality Act (CEQA) review, pursuant to CEQA Guidelines at 14 California Code of Regulations (C.C.R.) Section 15301 regarding exemption for existing facilities, 14 C.C.R Section 15303 regarding new construction or conversion of small structures, and 14 C.C.R Section 15304 which consists of minor public or private alterations in the condition of land.

13. The Commission has determined that the Round Valley Indian Tribes Fiber-To-TheHome Project is not categorically exempt from California Environmental Quality Act review.

14. The City of Fort Bragg Gig project is categorically exempt from California Environmental Quality Act review under 14 California Code of Regulations Section 15301 (Existing Facilities) and 14 California Code of Regulations Section 15304 (Minor Alteration to Land).

15. The City of Ukiah is the Responsible Agency for compliance with California Environmental Quality Act with respect to the environmental review of the City of Ukiah Gigabit Fiber Project.

16. The Commission has determined that Hankins Information Technology’s HIT San Benito project is not categorically exempt from California Environmental Quality Act review at this time.

17. The Commission has determined that Surfnet’s Hutchinson, Mnt Bache, and Radonich projects are not categorically exempt from California Environmental Quality Act review at this time.

18. Communications Division staff analyzed the applications for compliance with Commission and Federal rules, reviewed local feedback, and conducted fiscal and

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26 technical analysis.

19. All applications listed above met minimum eligibility requirements provided in Decision 22-04-055.

20. Staff recommends approval of the applications in this resolution, as they comply with program rules as stated and contribute to the Federal Funding Account’s goal of building broadband internet infrastructure to communities without access to internet service at sufficient and reliable speeds.

21. Draft Resolution T-17835 was emailed to the CASF Distribution List and the R. 20- 09-001 Service List on August 8, 2024, in compliance with Public Utilities Code Section 311(g)(1).

THERFORE, IT IS ORDERED that:

1. The Commission shall award up to $289,643 in Federal Funding Account funds to Comcast in order to complete the Marin County project, as described in the appendices. The specific locations to be provided service will be updated and reconciled with the Broadband Serviceable Location Fabric after detailed engineering and project design, and the grant amount may be reduced consistent with a reduction in the number of locations.

2. The Commission shall award up to $11,060,331 in Federal Funding Account funds to the County of Marin in order to complete the Marin Coastal Hwy 1 project, as described in the appendices. The specific locations to be provided service will be updated and reconciled with the Broadband Serviceable Location Fabric after detailed engineering and project design, and the grant amount may be reduced consistent with a reduction in the number of locations.

3. The Commission shall award up to $35,172,662 in Federal Funding Account funds to the Round Valley Indian Tribes in order to complete the Round Valley Indian Tribes Fiber-To-The-Home project, as described in the appendices. The specific locations to be provided service will be updated and reconciled with the Broadband Serviceable Location Fabric after detailed engineering and project design, and the grant amount may be reduced consistent with a reduction in the number of locations.

4. The Commission shall award up to $10,300,000 in Federal Funding Account funds to the City of Fort Bragg in order to complete the Fort Bragg Gig project, as described in the appendices. The specific locations to be provided service will be updated and reconciled with the Broadband Serviceable Location Fabric after detailed engineering and project design, and the grant amount may be reduced consistent

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27 with a reduction in the number of locations.

5. The Commission shall award up to $5,587,154 in Federal Funding Account funds to the City of Ukiah in order to complete the City of Ukiah Gigabit Fiber Project, as described in the appendices. The specific locations to be provided service will be updated and reconciled with the Broadband Serviceable Location Fabric after detailed engineering and project design, and the grant amount may be reduced consistent with a reduction in the number of locations.

6. The Commission shall award up to $10,436,024 in Federal Funding Account funds to Hankins Information Technology in order to complete the HIT San Benito project, as described in the appendices. The specific locations to be provided service will be updated and reconciled with the Broadband Serviceable Location Fabric after detailed engineering and project design, and the grant amount may be reduced consistent with a reduction in the number of locations.

7. The Commission shall award up to $2,232,995 in Federal Funding Account funds to California Broadband Alliance in order to complete the Hutchinson project, as described in the appendices. The specific locations to be provided service will be updated and reconciled with the Broadband Serviceable Location Fabric after detailed engineering and project design, and the grant amount may be reduced consistent with a reduction in the number of locations.

8. The Commission shall award up to $990,767 in Federal Funding Account funds to California Broadband Alliance in order to complete the Mnt Bache project, as described in the appendices. The specific locations to be provided service will be updated and reconciled with the Broadband Serviceable Location Fabric after detailed engineering and project design, and the grant amount may be reduced consistent with a reduction in the number of locations.

9. The Commission shall award up to $1,125,031 in Federal Funding Account funds to California Broadband Alliance in order to complete the Radonich project, as described in the appendices. The specific locations to be provided service will be updated and reconciled with the Broadband Serviceable Location Fabric after detailed engineering and project design, and the grant amount may be reduced consistent with a reduction in the number of locations.

10. The Commission shall award up to $13,804,241 in Federal Funding Account funds to Comcast in order to complete the Sutter County project, as described in the appendices. The specific locations to be provided service will be updated and reconciled with the Broadband Serviceable Location Fabric after detailed

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28 engineering and project design, and the grant amount may be reduced consistent with a reduction in the number of locations.

11. For those projects not determined to be categorically exempt, the Commission cannot release funds for construction activities until California Environmental Quality Act (CEQA) review is complete. The awardees must comply with the requirements set forth in the CEQA Section of the Resolution. The awardees must provide their Proponent’s Environmental Assessment for each project prior to the first payment.

12. Awardee(s) shall comply with all guidelines, requirements, and conditions set forth in this resolution.

13. When a successor to the Affordable Connectivity Program is identified by the Commission, all awardees shall participate in that program.

14. All construction covered by the grant must be completed within the applicable 18- month or 24-month time frame. In the event of extenuating circumstances jeopardizing this timeline, the Awardee(s) must notify the Communications Division’s Director as soon as they become aware of any delay. If such notice is not provided, staff can take corrective actions including reducing payment for failure to satisfy this requirement.

15. If the awardee(s) fail to complete the project(s) in accordance with the terms outlined in Decision 22-04-055 and with the terms of the Commission’s approval, as set forth in this resolution, awardees must reimburse some or all the Federal Funding Account grants received or take other corrective action.

16. Comcast’s applications for the Marin County, and Sutter County projects propose to freeze the price for one plan for 10 years, and do not request a waiver of the requirement to freeze all other plans offered. Accordingly, this grant is recommended for award with the understanding that Comcast serve customers in the project area at prices not exceeding those in the application for all plans in the application for five years. If Comcast cannot satisfy this requirement Comcast may request a waiver including an explanation of why a waiver is being requested and a rationale for why a waiver should be granted.

17. If staff evaluation finds any of the projects can be exempt from the California Environmental Quality Act, then the project can be exempted by letter from the Communications Division Director or the director’s delegate or designee.

18. The effective date of each award and encumbrance of funds is to be set, in consultation with the Applicant, by letter from the Communications Division

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29 Director or the director’s delegate or designee. All awards are contingent on available state budget appropriations funding and may be subject to Budget Letter 24-07.22
This resolution is effective today.

I certify that the foregoing resolution was duly introduced, passed, and adopted at a conference of the Public Utilities Commission of the State of California held on ___________________, the following Commissioners voting favorable thereon:

Rachel Peterson
Executive Director
22 Department of Finance Budget Letter 24-07, “Onetime Appropriation(s) Expenditure Freeze Pursuant to Section 21 of the Budget Act of 2023 (As Amended by Section 74 of AB 106 (Chapter 9, Statutes of 2024)),” available at: https://dof.ca.gov/wp-content/uploads/sites/352/2024/04/BL-24-07.pdf

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APPENDIX A
Comcast California Environmental Quality Act Compliance Requirements The following Comcast projects are subject to California Environmental Quality Act (CEQA) review:
- Sutter County
The Commission must complete CEQA review prior to disbursing Federal Funding Account funds for construction activities. The initial funding granted in this Resolution may be used for project development and other Comcast activities that do not involve construction or any activities that would have any direct or indirect effect on the physical environment.

Prior to any construction activity for the project, Comcast is required to seek further authority from the Commission for such activity by filing a Proponent’s Environmental Assessment (PEA) pursuant to Commission Rule of Practice and Procedure 2.4; and must undergo an environmental review pursuant to CEQA (California Public Resources Code § 21000 et seq.).

Comcast should contact the Supervisor of the Commission’s Energy Division CEQA Unit well in advance of a contemplated filing to (a) consult with staff regarding the process of developing and filing a PEA; (b) provide for cost recovery per Rule of Practice and Procedure 2.5; and (c) enter into a Memorandum of Understanding to allow the Energy Division to initiate the retention of an environmental contractor to perform the environmental review.

Comcast must provide a PEA prior to the first payment. The Commission cannot release funds for the construction phase of this project until the Commission has completed CEQA review.

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Comcast California Environmental Quality Act Compliance Requirements The following Comcast project is categorically exempt from California Environmental Quality Act (CEQA) review:
 Marin County
Approximately two miles of new fiber will be placed in existing conduit or in new conduit to be installed along existing roadways using directional boring or micro trenching. A 6 inch X 18 inch pedestal will be installed at each customer service point.

Based on the information that Comcast provided, the Commission’s Energy Division has confirmed that the project meets the criteria for the CEQA categorical exemptions under 14 California Code of Regulations (C.C.R) Section 15301 (Existing facilities), 14 C.C.R Section 15303 (New Construction or Conversion of Small Structures), and 14 C.C.R Section 15304 (Minor Alterations to Land). Thus, the Marin County Project is categorically exempt from CEQA review and the Commission may authorize funds for the construction activities.

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APPENDIX B
County of Marin California Environmental Quality Act Compliance Requirements The following County of Marin project is categorically exempt from California Environmental Quality Act (CEQA) review:
 Marin Coastal Hwy 1
The Marin Coastal Hwy 1 project is in Marin County. The approximately 18 miles of new fiber will be placed in existing conduit or in new conduit to be installed along existing roadways using directional boring. A 10’X20’ prefabricated aggregate shelter will be installed on already developed County property.

Based on the information that Marin County provided, the Commission’s Energy Division has confirmed that the project meets the criteria for the CEQA categorical exemptions under 14 California Code of Regulations (C.C.R.) Section 15301 (Existing facilities), 14 C.C.R. Section 15303 (New Construction or Conversion of Small Structures), and 14 C.C.R. Section 15304 (Minor Alterations to Land). Thus, the Marin Coastal Highway Project is categorically exempt from CEQA review and the Commission may authorize funds for the construction activities.

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APPENDIX C
Round Valley Indian Tribes California Environmental Quality Act Compliance Requirements
The following Round Valley Indian Tribes project is subject to California Environmental Quality Act (CEQA) review:
 Round Valley Indian Tribes Fiber-To-The-Home
The Commission must complete CEQA review prior to disbursing Federal Funding Account funds for construction activities. The initial funding granted in this Resolution may be used for project development and other Round Valley Indian Tribes' activities that do not involve construction or any activities that would have any direct or indirect effect on the physical environment.

Prior to any construction activity for the project, Round Valley Indian Tribes is required to seek further authority from the Commission for such activity by filing a Proponent’s Environmental Assessment (PEA) pursuant to Commission Rule of Practice and Procedure 2.4; and must undergo an environmental review pursuant to CEQA (California Public Resources Code § 21000 et seq.).

Round Valley Indian Tribes should contact the Supervisor of the Commission’s Energy Division CEQA Unit well in advance of a contemplated filing to (a) consult with staff regarding the process of developing and filing a PEA; (b) provide for cost recovery per Rule of Practice and Procedure 2.5; and (c) enter into a Memorandum of Understanding to allow the Energy Division to initiate the retention of an environmental contractor to perform the environmental review.

Round Valley Indian Tribes' listed application is subject to National Environmental Policy Act (NEPA) review, as acknowledged in its application. Round Valley Indian Tribes should make every effort to ensure that the Commission’s CEQA Unit is aware of and included in the NEPA process. Round Valley Indian Tribes must provide a PEA prior to the first payment. The Commission cannot release funds for the construction project until the Commission has completed CEQA review.

Round Valley Indian Tribes must provide a PEA prior to the first payment. The Commission cannot release funds for the construction phase of this project until the Commission has completed CEQA review.

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APPENDIX D
City of Fort Bragg California Environmental Quality Act Compliance Requirements The following City of Fort Bragg project is categorically exempt from California Environmental Quality Act (CEQA) review:
 Fort Bragg Gig
The City of Fort Bragg provided the Commission with its project plans to install new underground fiber in conduit within previously disturbed ground adjacent to existing roadways. The project alignment runs throughout the City of Fort Bragg on mostly residential roads. Upon completion of all underground conduit placement, the surface will be returned to its original condition.

Based on the information that the City of Fort Bragg provided, the Commission’s Energy Division has confirmed that the project meets the criteria for the CEQA categorical exemptions under 14 California Code of Regulations (C.C.R.) § 15301 (Existing Facilities) and 14 C.C.R. § 15304 (Minor Alteration to Land). Thus, the City of Fort Bragg Gig project is categorically exempt from CEQA review and the Commission may authorize funds for construction activities.

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APPENDIX E
City of Ukiah California Environmental Quality Act Compliance Requirements The following City of Ukiah project is subject to California Environmental Quality Act (CEQA) review:
 City of Ukiah Gigabit Fiber Project
The Commission must complete CEQA review prior to disbursing Federal Funding Account funds for construction activities. The initial funding granted in this Resolution may be used for project development and other City of Ukiah activities that do not involve construction or any activities that would have any direct or indirect effect on the physical environment.

Prior to any construction activity for the project, the City of Ukiah is required to seek further authority from the Commission for such activity by filing a Proponent’s Environmental Assessment (PEA) pursuant to Commission Rule of Practice and Procedure 2.4; and must undergo an environmental review pursuant to CEQA (California Public Resources Code § 21000 et seq).

The City of Ukiah should contact the Supervisor of the Commission’s Energy Division CEQA Unit well in advance of a contemplated filing to (a) consult with staff regarding the process of developing and filing a PEA; (b) provide for cost recovery per Rule of Practice and Procedure 2.5; and (c) enter into a Memorandum of Understanding to allow the Energy Division to initiate the retention of an environmental contractor to perform the environmental review.

The City of Ukiah must provide a PEA prior to the first payment. The Commission cannot release funds for the construction phase of this project until the Commission has completed CEQA review.

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APPENDIX F
Hankins Information Technology California Environmental Quality Act Compliance Requirements
The following Hankins Information Technology projects are subject to California Environmental Quality Act (CEQA) review:
 HIT San Benito
The Commission must complete CEQA review prior to disbursing Federal Funding Account funds for construction activities. The initial funding granted in this Resolution may be used for project development and other Hankins Information Technology activities that do not involve construction or any activities that would have any direct or indirect effect on the physical environment.

Prior to any construction activity for the project, Hankins Information Technology is required to seek further authority from the Commission for such activity by filing a Proponent’s Environmental Assessment (PEA) pursuant to Commission Rule of Practice and Procedure 2.4; and must undergo an environmental review pursuant to CEQA (California Public Resources Code § 21000 et seq).

Hankins Information Technology should contact the Supervisor of the Commission’s Energy Division CEQA Unit well in advance of a contemplated filing to (a) consult with staff regarding the process of developing and filing a PEA; (b) provide for cost recovery per Rule of Practice and Procedure 2.5; and (c) enter into a Memorandum of Understanding to allow the Energy Division to initiate the retention of an environmental contractor to perform the environmental review.

Hankins Information Technology must provide a PEA prior to the first payment. The Commission cannot release funds for the construction phase of this project until the Commission has completed CEQA review.

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APPENDIX G
California Broadband Alliance and Surfnet Communications California Environmental Quality Act Compliance Requirements
The following California Broadband Alliance and Surfnet Communications projects are subject to California Environmental Quality Act (CEQA) review:
 Hutchinson
 Mnt Bache
 Radonich
The Commission must complete CEQA review prior to disbursing Federal Funding Account funds for construction activities. The initial funding granted in this Resolution may be used for project development and other California Broadband Alliance and Surfnet Communications activities that do not involve construction or any activities that would have any direct or indirect effect on the physical environment.

Prior to any construction activity for the projects, the California Broadband Alliance or Surfnet Communications is required to seek further authority from the Commission for such activity by filing a Proponent’s Environmental Assessment (PEA) pursuant to Commission Rule of Practice and Procedure 2.4; and must undergo an environmental review pursuant to CEQA (California Public Resources Code § 21000 et seq.).

California Broadband Alliance or Surfnet Communications should contact the Supervisor of the Commission’s Energy Division CEQA Unit well in advance of a contemplated filing to (a) consult with staff regarding the process of developing and filing a PEA; (b) provide for cost recovery per Rule of Practice and Procedure 2.5; and (c) enter into a Memorandum of Understanding to allow the Energy Division to initiate the retention of an environmental contractor to perform the environmental review.

The California Broadband Alliance or Surfnet Communications must provide a PEA prior to the first payment. The Commission cannot release funds for the construction phase of these projects until the Commission has completed CEQA review.

Resolution T-17839 September 12, 2024
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APPENDIX H
Comcast Marin County Project
Key Information
Project Name Marin County
Applicant Name Comcast Cable Communications Management, LLC Community Names Novato
County Marin County
County Allocation $11,540,164
Project Size (in square miles) 0.09
Maximum Download/Upload speed 1250/1250 Mbps
Lowest cost plan (non-income qualified) $40/month for 100/100 Mbps23 Low-income plan
Yes, $9.95/month for 50/10 Mbps, with Internet
Essentials, or speeds of up to 100/20 Mbps for
$29.95/month with Internet Essentials Plus
Low-cost plan (non-income qualified) Yes, $40/month for 100/100 Mbps24 LifeLine Participation No
Percent Disadvantaged Communities 0 percent
Percent Low-Income Areas 100 percent
Median Household Income (weighted) $93,456
Area Households 426
Area Population 860
Estimated locations within 1000 feet of the project
area (location passings) 350
Estimated units within 1000 feet of the project area
(unit passings) 1,076
Unserved locations applicant proposes to serve 152
23 In its Application for this project, Comcast sought confidential treatment of, among other things, this price and speed pursuant to the CPRA, Public Utilities Code § 583, and G.O. 66-D. As an express requirement to receive this proposed public grant, this information does not qualify as a trade secret, and the public interest in its disclosure outweighs the public interest in its nondisclosure.
24 In its Application for this project, Comcast sought confidential treatment of, among other things, this price and speed pursuant to the CPRA, Public Utilities Code § 583, and G.O. 66-D. As an express requirement to receive this proposed public grant, this information does not qualify as a trade secret, and the public interest in its disclosure outweighs the public interest in its nondisclosure.

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Unserved locations in the project area 137
Unserved units in the project area 273
Estimated unserved population in the project area 542
Estimated unserved Multiple Dwelling Unit (MDU)
locations in the project area
136
Estimated unserved Multiple Dwelling Unit (MDU)
location units in the project area
272
Community Anchor Institutions benefitting from the
project 1
Public safety locations benefitting from the project 1
Does the project connect to public open access
middle mile? No
Distance of middle-mile, backhaul, and connection
to Middle-Mile Broadband Initiative in project -
Grant costs for middle-mile, backhaul, and
connection to Middle-Mile Broadband Initiative in
project
-
Grant costs for last mile delivery $283,964
Deployment Schedule 18 Months
Total Project Cost $573,607
Amount of FFA grant funds requested $289,643
Applicant funded $283,964
Grant (excluding middle mile) per unserved unit in
the project area
$1,061
Grant (excluding middle mile) per unit passing $269

Resolution T-17839 September 12, 2024
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Map of Comcast’s Marin County Project

Resolution T-17839 September 12, 2024
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APPENDIX I
Marin Coastal Hwy 1
Key Information
Project Name Marin Coastal Hwy 1
Applicant Name County of Marin
Community Names Muir Beach 94965, Tomales 94971, and Dillon Beach 94929.

County Marin County
County Allocation $11,540,164
Project Size (in square miles) 6
Maximum Download/Upload speed 1000/1000 Mbps
Lowest cost plan (non-income qualified) $40/month for 100/100 Mbps Low-income plan No
Low-cost plan (non-income qualified) Yes, $40/month for 100/100 Mbps LifeLine Participation No
Percent Disadvantaged Communities 0 percent
Percent Low-Income Areas 0 percent
Median Household Income (weighted) $145,500
Area Households 400
Area Population 851
Estimated locations within 1000 feet of the
project area (location passings) 710
Estimated units within 1000 feet of the project
area (unit passings) 839
Unserved locations applicant proposes to serve 694
Unserved locations in the project area 700
Unserved units in the project area 828
Estimated unserved population in the project
area
837
Estimated unserved Multiple Dwelling Unit
(MDU) locations in the project area
79

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Estimated unserved Multiple Dwelling Unit
(MDU) location units in the project area
207
Community Anchor Institutions benefitting from
the project 12
Public safety locations benefitting from the
project 6
Does the project connect to public open access
middle mile? Yes
Distance of middle-mile, backhaul, and
connection to Middle-Mile Broadband Initiative in
project
-
Grant costs for middle-mile, backhaul, and
connection to Middle-Mile Broadband Initiative in
project
-
Grant costs for last mile delivery $11,060,331
Deployment Schedule 12 Months
Total Project Cost $11,060,331
Amount of FFA grant funds requested $11,060,331
Applicant funded $0
Grant (excluding middle mile) per unserved unit
in the project area
$13,358
Grant (excluding middle mile) per unit passing $13,183

Resolution T-17839 September 12, 2024
CD/CJ2
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Map of Marin Coastal Hwy 1

Resolution T-17839 September 12, 2024
CD/CJ2
J-1

APPENDIX J
Round Valley Indian Tribes Fiber-To-The-Home
Key Information
Project Name Round Valley Indian Tribes Fiber-To-The-Home Applicant Name Round Valley Indian Tribes
Community Names Round Valley Indian Tribes
County Mendocino County
County Allocation $57,430,812
Project Size (in square miles) 33
Maximum Download/Upload speed 1,000/1,000 Mbps
Lowest cost plan (non-income qualified) $40/month for 50/20 Mbps Low-income plan Yes, $40/month for 50/20 Mbps
Low-cost plan (non-income qualified) Yes, $40/month for 50/20 Mbps LifeLine Participation Yes
Percent Disadvantaged Communities 10 percent
Percent Low-Income Areas 100 percent
Median Household Income (weighted) $43,750
Area Households 979
Area Population 2,719
Estimated locations within 1000 feet of the
project area (location passings) 929
Estimated units within 1000 feet of the project
area (unit passings) 1,199
Unserved locations applicant proposes to serve 500
Unserved locations in the project area 500
Unserved units in the project area 1,099
Estimated unserved population in the project
area
2,651
Estimated unserved Multiple Dwelling Unit
(MDU) locations in the project area
138
Estimated unserved Multiple Dwelling Unit
(MDU) location units in the project area
386
Community Anchor Institutions benefitting from
the project 16

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Public safety locations benefitting from the
project 6
Does the project connect to public open access
middle mile? Yes
Distance of middle-mile, backhaul, and
connection to Middle-Mile Broadband Initiative in
project

51.2 miles
Grant costs for middle-mile, backhaul, and
connection to Middle-Mile Broadband Initiative in
project
$2,597,912
Grant costs for last mile delivery $32,574,750
Deployment Schedule 24 Months
Total Project Cost $50,172,025
Amount of FFA grant funds requested $35,172,662
Applicant funded $14,999,363
Grant (excluding middle mile) per unserved unit
in the project area
$32,004
Grant (excluding middle mile) per unit passing $29,335

Resolution T-17839 September 12, 2024
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Map of Round Valley Indian Tribes Fiber-To-The-Home

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APPENDIX K
Fort Bragg Gig
Key Information
Project Name Fort Bragg Gig
Applicant Name City of Fort Bragg
Community Names Fort Bragg
County Mendocino
County Allocation $57,430,812
Project Size (in square miles) 5
Maximum Download/Upload speed 10,000/6,000 Mbps
Lowest cost plan (non-income qualified) $40/month for 500/500Mbps Low-income plan Yes, $40/month for 500/500 Mbps
Low-cost plan (non-income qualified) Yes, $40/month for 500/500 Mbps LifeLine Participation Yes
Percent Disadvantaged Communities 0 percent
Percent Low-Income Areas 92 percent
Median Household Income (weighted) $42,782
Area Households 3,448
Area Population 8,733
Estimated locations within 1000 feet of the
project area (location passings) 2,858
Estimated units within 1000 feet of the project
area (unit passings) 4,511
Unserved locations applicant proposes to serve 380
Unserved locations in the project area 256
Unserved units in the project area 370
Estimated unserved population in the project
area
608
Estimated unserved Multiple Dwelling Unit
(MDU) locations in the project area
76 Estimated unserved Multiple Dwelling Unit
(MDU) location units in the project area
265

Resolution T-17839 September 12, 2024
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Community Anchor Institutions benefitting from
the project 47
Public safety locations benefitting from the
project 7
Does the project connect to public open access
middle mile? Yes
Distance of middle-mile, backhaul, and
connection to Middle-Mile Broadband Initiative in
project
-
Grant costs for middle-mile, backhaul, and
connection to Middle-Mile Broadband Initiative in
project
-
Grant costs for last mile delivery $10,300,000
Deployment Schedule 24 Months
Total Project Cost $14,700,000
Amount of FFA grant funds requested $10,300,000
Applicant funded $4,400,000
Grant (excluding middle mile) per unserved unit
in the project area
$27,838
Grant (excluding middle mile) per unit passing $2,283

Resolution T-17839 September 12, 2024
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Map of Fort Bragg Gig

Resolution T-17839 September 12, 2024
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APPENDIX L
City of Ukiah Gigabit Fiber Project
Key Information
Project Name City of Ukiah Gigabit Fiber Project
Applicant Name City of Ukiah
Community Names Ukiah
County Mendocino
County Allocation $57,430,812
Project Size (in square miles) 3
Maximum Download/Upload speed 10,000/10,000 Mbps
Lowest cost plan (non-income qualified) $39.99/month for 50/20 Mbps Low-income plan Yes, $29.99/month for 10,000/10,000 Mbps Low-cost plan (non-income qualified) Yes, $39.99/month for 50/20 Mbps LifeLine Participation No
Percent Disadvantaged Communities 0 percent
Percent Low-Income Areas 88 percent
Median Household Income (weighted) $48,358
Area Households 3,855
Area Population 9,142
Estimated locations within 1000 feet of the
project area (location passings) 5,148
Estimated units within 1000 feet of the project
area (unit passings) 9,136
Unserved locations applicant proposes to serve 375
Unserved locations in the project area 375
Unserved units in the project area 872
Estimated unserved population in the project
area
1,635
Estimated unserved Multiple Dwelling Unit
(MDU) locations in the project area
241

Resolution T-17839 September 12, 2024
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Estimated unserved Multiple Dwelling Unit
(MDU) location units in the project area
748
Community Anchor Institutions benefitting from
the project 44
Public safety locations benefitting from the
project 10
Does the project connect to public open access
middle mile? Yes
Distance of middle-mile, backhaul, and
connection to Middle-Mile Broadband Initiative in
project
-
Grant costs for middle-mile, backhaul, and
connection to Middle-Mile Broadband Initiative in
project
-
Grant costs for last mile delivery $5,587,154
Deployment Schedule 18 Months
Total Project Cost $6,403,261
Amount of FFA grant funds requested $5,587,154
Applicant funded $816,107
Grant (excluding middle mile) per unserved unit
in the project area
$6,407
Grant (excluding middle mile) per unit passing $612

Resolution T-17839 September 12, 2024
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Map of Ukiah Gigabit Fiber Project

Resolution T-17839 September 12, 2024
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APPENDIX M
HIT San Benito
Key Information
Project Name HIT San Benito
Applicant Name Hankins Information Technology, Inc.

Community Names Hollister, San Juan, and Aromas
County San Benito
County Allocation $10,436,025
Project Size (in square miles) 83
Maximum Download/Upload speed 10,000/10,000 Mbps
Lowest cost plan (non-income qualified) $40/month for 50/20 Mbps Low-income plan Yes, $40/month for 50/20 Mbps
Low-cost plan (non-income qualified) Yes, $40/month for 50/20 Mbps LifeLine Participation Yes
Percent Disadvantaged Communities 0 percent
Percent Low-Income Areas 55 percent
Median Household Income (weighted) $72,639
Area Households 2,215
Area Population 6,560
Estimated locations within 1000 feet of the
project area (location passings) 4,605
Estimated units within 1000 feet of the project
area (unit passings) 5,831
Unserved locations applicant proposes to serve 1,200
Unserved locations in the project area 1,154
Unserved units in the project area 1,677
Estimated unserved population in the project
area
4,572
Estimated unserved Multiple Dwelling Unit
(MDU) locations in the project area
287
Estimated unserved Multiple Dwelling Unit
(MDU) location units in the project area
810

Resolution T-17839 September 12, 2024
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Community Anchor Institutions benefitting from
the project 13
Public safety locations benefitting from the
project 2
Does the project connect to public open access
middle mile? Yes
Distance of middle-mile, backhaul, and
connection to Middle-Mile Broadband Initiative in
project
-
Grant costs for middle-mile, backhaul, and
connection to Middle-Mile Broadband Initiative in
project
-
Grant costs for last mile delivery $10,436,024
Deployment Schedule 24 Months
Total Project Cost $11,114,635
Amount of FFA grant funds requested $10,436,024
Applicant funded $678,611
Grant (excluding middle mile) per unserved unit
in the project area
$6,223
Grant (excluding middle mile) per unit passing $1,790

Resolution T-17839 September 12, 2024
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Map of HIT San Benito

Resolution T-17839 September 12, 2024
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APPENDIX N
Hutchinson
Key Information
Project Name Hutchinson
Applicant Name Surfnet Communications, Inc.

Community Names Hutchinson
County Santa Cruz
County Allocation $10,323,008
Project Size (in square miles) 4
Maximum Download/Upload speed 1,000/1,000 Mbps
Lowest cost plan (non-income qualified) $30/month for 100/100 Mbps Low-income plan Yes, $30/month for 100/100 Mbps
Low-cost plan (non-income qualified) Yes, $30/month for 100/100 Mbps LifeLine Participation No
Percent Disadvantaged Communities 0 percent
Percent Low-Income Areas 0 percent
Median Household Income (weighted) $153,848
Area Households 358
Area Population 805
Estimated locations within 1000 feet of the
project area (location passings) 319
Estimated units within 1000 feet of the project
area (unit passings) 430
Unserved locations applicant proposes to serve 239
Unserved locations in the project area 251
Unserved units in the project area 343
Estimated unserved population in the project
area
760
Estimated unserved Multiple Dwelling Unit
(MDU) locations in the project area
69 Estimated unserved Multiple Dwelling Unit
(MDU) location units in the project area
161

Resolution T-17839 September 12, 2024
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Community Anchor Institutions benefitting from
the project 0
Public safety locations benefitting from the
project 0
Does the project connect to public open access
middle mile? Yes
Distance of middle-mile, backhaul, and
connection to Middle Mile Broadband Initiative in
project
-
Grant costs for middle-mile, backhaul, and
connection to Middle Mile Broadband Initiative in
project
-
Grant costs for last mile delivery $2,232,995
Deployment Schedule 18 Months
Total Project Cost $2,232,995
Amount of FFA grant funds requested $2,232,995
Applicant funded $0
Grant (excluding middle mile) per unserved unit
in the project area
$6,510
Grant (excluding middle mile) per unit passing $5,193

Resolution T-17839 September 12, 2024
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Map of Hutchinson

Resolution T-17839 September 12, 2024
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APPENDIX O
Mnt Bache
Key Information
Project Name Mnt Bache
Applicant Name Surfnet Communications, inc.

Community Names Mnt Bache
County Santa Cruz
County Allocation $10,323,008
Project Size (in square miles) 5
Maximum Download/Upload speed 1000/1000 Mbps
Lowest cost plan (non-income qualified) $30/month for 100/100 Mbps Low-income plan Yes, $30/month for 100/100 Mbps
Low-cost plan (non-income qualified) Yes, $30/month for 100/100 Mbps LifeLine Participation No
Percent Disadvantaged Communities 0 percent
Percent Low-Income Areas 0 percent
Median Household Income (weighted) $126,250
Area Households 154
Area Population 408
Estimated locations within 1000 feet of the
project area (location passings) 212
Estimated units within 1000 feet of the project
area (unit passings) 284
Unserved locations applicant proposes to serve 101
Unserved locations in the project area 84
Unserved units in the project area 121
Estimated unserved population in the project
area
307
Estimated unserved Multiple Dwelling Unit
(MDU) locations in the project area
29 Estimated unserved Multiple Dwelling Unit
(MDU) location units in the project area
66

Resolution T-17839 September 12, 2024
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O-2
Community Anchor Institutions benefitting from
the project 0
Public safety locations benefitting from the
project 0
Does the project connect to public open access
middle mile? Yes
Distance of middle-mile, backhaul, and
connection to Middle Mile Broadband Initiative in
project
-
Grant costs for middle-mile, backhaul, and
connection to Middle Mile Broadband Initiative in
project
-
Grant costs for last mile delivery $990,767
Deployment Schedule 18 Months
Total Project Cost $990,767
Amount of FFA grant funds requested $990,767
Applicant funded $0
Grant (excluding middle mile) per unserved unit
in the project area
$8,188
Grant (excluding middle mile) per unit passing $3,489

Resolution T-17839 September 12, 2024
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Map of Mnt Bache

Resolution T-17839 September 12, 2024
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APPENDIX P
Radonich
Key Information
Project Name Radonich
Applicant Name Surfnet Communications, Inc.

Community Names Radonich
County Santa Cruz
County Allocation $10,323,008
Project Size (in square miles) 1
Maximum Download/Upload speed 1,000/1,000 Mbps
Lowest cost plan (non-income qualified) $30/month for 100/100 Mbps Low-income plan Yes, $30/month for 100/100 Mbps
Low-cost plan (non-income qualified) Yes, $30/month for 100/100 Mbps LifeLine Participation No
Percent Disadvantaged Communities 0 percent
Percent Low-Income Areas 0 percent
Median Household Income (weighted) $126,250
Area Households 87
Area Population 210
Estimated locations within 1000 feet of the
project area (location passings) 123
Estimated units within 1000 feet of the project
area (unit passings) 170
Unserved locations applicant proposes to serve 70
Unserved locations in the project area 57
Unserved units in the project area 78
Estimated unserved population in the project
area
158
Estimated unserved Multiple Dwelling Unit
(MDU) locations in the project area
20

Resolution T-17839 September 12, 2024
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Estimated unserved Multiple Dwelling Unit
(MDU) location units in the project area
41 Community Anchor Institutions benefitting from
the project 1
Public safety locations benefitting from the
project 1
Does the project connect to public open access
middle mile? Yes
Distance of middle-mile, backhaul, and
connection to Middle Mile Broadband Initiative in
project
-
Grant costs for middle-mile, backhaul, and
connection to Middle Mile Broadband Initiative in
project
-
Grant costs for last mile delivery $1,125,031
Deployment Schedule 18 Months
Total Project Cost $1,125,031
Amount of FFA grant funds requested $1,125,031
Applicant funded $0
Grant (excluding middle mile) per unserved unit
in the project area
$14,423
Grant (excluding middle mile) per unit passing $6,618

Resolution T-17839 September 12, 2024
CD/CJ2
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Map of Radonich

Resolution T-17839 September 12, 2024
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Q-1

APPENDIX Q
Sutter County
Key Information
Project Name Sutter County
Applicant Name Comcast Cable Communications Management, LLC
Community Names Yuba City, Live Oak
County Sutter
County Allocation $20,397,554
Project Size (in square miles) 36
Maximum Download/Upload speed 1,250/1,250 Mbps
Lowest cost plan (non-income qualified) $40/month for 100/100 Mbps25 Low-income plan
Yes, $9.95/month for 50/10 Mbps, with Internet
Essentials, or speeds of up to 100/20 Mbps for
$29.95/month with Internet Essentials Plus
Low-cost plan (non-income qualified) Yes, $40/month for 100/100 Mbps26 LifeLine Participation No
Percent Disadvantaged Communities 0 percent
Percent Low-Income Areas 99 percent
Median Household Income (weighted) $61,250
Area Households 546
Area Population 1,679
Estimated locations within 1000 feet of the
project area (location passings) 689
Estimated units within 1000 feet of the project
area (unit passings) 857
Unserved locations applicant proposes to serve 458
25 In its Application for this project, Comcast sought confidential treatment of, among other things, this price and speed pursuant to the CPRA, Public Utilities Code § 583, and G.O. 66-D. As an express requirement to receive this proposed public grant, this information does not qualify as a trade secret, and the public interest in its disclosure outweighs the public interest in its nondisclosure.
26 In its Application for this project, Comcast sought confidential treatment of, among other things, this price and speed pursuant to the CPRA, Public Utilities Code § 583, and G.O. 66-D. As an express requirement to receive this proposed public grant, this information does not qualify as a trade secret, and the public interest in its disclosure outweighs the public interest in its nondisclosure.

Resolution T-17839 September 12, 2024
CD/CJ2
Q-2
Unserved locations in the project area 418
Unserved units in the project area 537
Estimated unserved population in the project
area
1,392
Estimated unserved Multiple Dwelling Unit
(MDU) locations in the project area
99 Estimated unserved Multiple Dwelling Unit
(MDU) location units in the project area
218
Community Anchor Institutions benefitting from
the project 2
Public safety locations benefitting from the
project 1
Does the project connect to public open access
middle mile? No
Distance of middle-mile, backhaul, and
connection to Middle Mile Broadband Initiative in
project
-
Grant costs for middle-mile, backhaul, and
connection to Middle Mile Broadband Initiative in
project
-
Grant costs for last mile delivery $13,804,241
Deployment Schedule 18 Months
Total Project Cost $13,804,241
Amount of FFA grant funds requested $13,804,241
Applicant funded $0
Grant (excluding middle mile) per unserved unit
in the project area
$25,706
Grant (excluding middle mile) per unit passing $16,108

Resolution T-17839 September 12, 2024
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Map of Comcast’s Sutter County Project

Resolution T-17839 September 12, 2024
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APPENDIX R
California Public Utilities Commission
Federal Funding Account, Last Mile Program
Guidance to Staff Regarding

CONSENT FORM
Acknowledgement and Acceptance of Terms
Awardee Name: _______________________________________
Key Project Contact: _________________________________________ The Awardee identified above acknowledges receipt of the California Public Utilities Commission Resolution or Award Letter and agrees to comply with all grant terms, conditions, and requirements set forth in the Resolution or Award Letter including those in the Federal Funding Account, Last Mile Program Rules. Awards are contingent on available state budget appropriations funding and may be subject to Budget Letter 24-07.
27 Undersigned representative of __________________________________ [Name of Awardee] is duly authorized to execute this Consent Form on behalf of the Awardee and to bind the Awardee to the terms, conditions, and requirements set forth in California Public Utilities Commission Resolution or Award Letter and those in the Federal Funding Account, Last Mile Program Rules.

Dated this _____ day of _____________, 20____.

Signature of Awardee Representative: _____________________________________________________ Title __________________________________________________________ Printed Name __________________________________________________ Name of Business, Organization, Local Agency or Tribe:
______________________________________________________________ Business Address (include street address, suite/apt. number, city, state, and ZIP Code):
___________________________________________________________________________ Telephone Number: ________________________________
Email Address: _____________________________________
27 Department of Finance Budget Letter 24-07, “Onetime Appropriation(s) Expenditure Freeze Pursuant to Section 21 of the Budget Act of 2023 (As Amended by Section 74 of AB 106 (Chapter 9, Statutes of 2024)),” available at: https://dof.ca.gov/wp-content/uploads/sites/352/2024/04/BL-24-07.pdf

California Public Utilities Commission
Federal Funding Account, Last Mile Program

CONSENT FORM
Acknowledgement and Acceptance of Terms
Awardee Name:

Key Project Contact:

Project Name:

The Awardee identified above acknowledges receipt of the California Public Utilities Commission Resolution or Award Letter for the Project named above and agrees to comply with all grant terms, conditions, and requirements set forth in the Resolution or Award Letter and those in the Federal Funding Account, Last Mile program rules.

Undersigned representative of [Name
of Awardee] is duly authorized to execute this Consent Form on behalf of the Awardee and to bind the Awardee to the terms, conditions, and requirements set forth in California Public Utilities Commission Resolution or Award Letter and those in the Federal Funding Account, Last Mile program rules.

Dated this day of , 20 .

Signature of Awardee Representative:

Title:

Printed Name:

Name of Representative’s Organization:

Business Address:

Street address, suite/apt. number
City, state, and ZIP Code
Telephone Number:

Email Address:

ATTACHMENT 3

Agenda Item No: 8.c.

MEETING DATE/TIME: 11/6/2024

ITEM NO: 2024-752

AGENDA SUMMARY REPORT
SUBJECT: Consideration of Adoption of Resolution Approving Side Letter to the Current Memorandum of Understanding Between the City of Ukiah and the Management Unit.

DEPARTMENT: Human Resources /
Risk Management PREPARED BY: Sheri Mannion, H.R. Director/Risk Manager PRESENTER: Sheri Mannion, Human Resources/Risk
Management Director
ATTACHMENTS:

1. Resolution and Side Letter between the City of Ukiah and Management Unit Summary: Council is being asked to consider adopting a Resolution approving a side letter to the current Memorandum of Understanding (MOU) between the City of Ukiah and Management Unit.

Background: As part of the overall routine maintenance of the classification and compensation schedules for the City of Ukiah, the Human Resources Department is responsible for evaluating classifications, developing new classifications (including appropriate salary levels), examining salary grade adjustments, and making recommendations for additions, modifications, and/or corrections to classifications and Memoranda of Understanding.

The current Memorandum of Understanding (MOU) between the City of Ukiah and the Management Unit is in effect until September 18, 2025. Over the past couple of years, the job market has become increasingly competitive, and retaining and attracting highly qualified financial professionals and skilled management staff has become difficult.

Discussion: Due to ongoing challenges in maintaining and recruiting qualified financial professionals, the City and Management Unit are requesting the flexibility to provide an additional incentive for possessing a Certified Public Accountant license by adding the following provision to the Management Unit Memorandum of Understanding (MOU):

Certified Public Accountant Incentive: The City shall recognize the licensure program for Certified Public Accountant (CPA) in California as governed by the California Accountancy Act (Division 3, Chapter 1, Sections 5000-5158 of the California Business and Professions Code, specifically Sections 5092, 5093, and 5027).

Permanent employees in the classifications of Assistant Finance Director, Controller, Accountant Series, Financial Services Manager, and Management Analyst Series, who possess and maintain an active State of California license as a CPA shall be paid an additional seven and a half percent (7.5%) of the sum of the employee’s base salary.

The City Manager may approve other classifications within the Management Unit for CPA Incentive pay during the duration of this Agreement, provided that the license is related to the duties of the classification for which the pay will be given.

Obtaining and maintaining a CPA license is a significant commitment to professional development and expertise in financial management and accounting principles. This license is widely recognized for its rigorous educational requirements and adherence to high ethical standards. Professionals with a CPA license enhance