Ukiah City Council
October 15, 2025

10 Average, All Items (1982-1984=100), published by the United States Department of Labor, Bureau of Labor Statistics.
(vii) “Disposal Fees – Garbage” means the actual Disposal Costs paid by Contractor for Solid Waste delivered by Contractor to the Disposal Facility during the Comparison Year. (viii) “Disposal Fees – Processing” means the actual Processing Costs paid by Contractor to PRS or any other Authorized Facility for Recyclables, Green Waste, Mixed Organic Waste and Food Waste delivered by Contractor to the PRS Facility or such Authorized Facility, respectively, during the Comparison Year.
(ix) “Fuel Costs” means Contractor’s actual costs for diesel and other fuels used in performing services under this Agreement during the Comparison Year. (x) “Fuel Index” means the California No.2 Diesel Retail Sales by all Sellers (Dollars Per Gallon) published by the U. S. Energy Information Administration. (xi) “Operating Costs” means all of Contractor’s costs to operate the Transfer Station under this Agreement, including, without limitation, labor costs, vehicle and vehicle-related costs, maintenance, insurance and transportation costs, but excluding Fuel Costs, Pass-Through Costs and the costs of purchasing scrap metal, Recyclables purchased under the buy-back program, and compost (including sales taxes).
(c) Rules. For purposes of Rate adjustments pursuant to this Section 6.2 and the Calculation, the following rules shall apply.
(i) “CPI Change” shall be calculated as one hundred percent (100%) of the percentage increase or decrease, if any, in the CPI during the Comparison Year, using the CPI published for June of such Year as compared with the CPI published for June of the Base Year. (ii) “Fuel Index Change” shall be calculated as one hundred percent (100%) of the percentage increase or decrease, if any, in the Fuel Index from June of the Base Year through June of the Comparison Year; provided, however, that, notwithstanding Section 6.2(b)(iii) above, “Base Year” for purposes of the Fuel Index Change shall mean the year ended June 30, 2010; and, provided, further, that the Fuel Index Change adjustment (i.e., Fuel Index Change multiplied by Base Fuel Cost) for any Rate Adjustment Date shall be calculated after removal of such adjustment for the prior Rate Adjustment Date.
(iii) The Adjustments for destination charges and Disposal Fees with respect to the use of the Eastlake landfill that appear in the Calculation are not recurring. (iv) Rate adjustments for changes in Franchise Fees that take effect on a date other than January 1st, as well as changes in other Pass-Through Costs, will be determined under Section

6.3 below and not under this Section 6.2.
(v) If City elects to purchase the Transfer Station Site and the Improvements on December 31, 2016 pursuant to Section 12 below, the cost entitled “Construction/Lease $2.36/ton” in the Calculation will be increased annually commencing January 1, 2018 by one hundred percent (100%) of the percentage increase or decrease, if any, in the CPI during the Comparison Year, using the CPI published for June of such Year as compared with the CPI published for June of the Base Year. (vii) As set forth in the Calculation, each adjustment in the per ton MSW Rate pursuant to this Section 6.2 shall equal the percentage adjustment in the Contractor Rate plus the per ton Franchise Fees.
(d) Per Yard MSW and Minimum MSW Rates. Each of the per yard MSW Rate, minimum MSW Rate and per can MSW Rate shall be adjusted January 1st every year (beginning January 1, 2013), as follows: the per yard MSW Rate shall equal 24.05% of the Contractor Rate, plus the per ton Franchise Fees divided by 5.54; the minimum MSW Rate shall equal the per yard MSW Rate divided by two (2); and the per can MSW Rate shall equal the minimum MSW Rate divided by three (3). All rates in this Section 6.2(d) shall be rounded to the nearest five cents. (e) All Other Rates. Each of the Rates set forth on Exhibit D other than the MSW Attachment 4

11 Rates shall be adjusted January 1st every year (beginning January 1, 2013) by an amount equal to the percentage increase or decrease, if any, in the Contractor Rate (i.e., determined before adjusting for Franchise Fees) . All rates in this Section 6.2(e) shall be rounded to the nearest five cents. (f) Procedure. The procedure for Rate adjustments under this Section 6.2 shall be as follows:
(i) Not later than August 15th of each year, Contractor shall file with the City Manager a written notice of intention to adjust each of the then current Rates effective as of January 1st of the next year in accordance with Section 6.2(a) through (e) above. (ii) Within sixty (60) days of the filing of the notice of intention, the City Manager shall review the notice and either confirm that the proposed Rates are within the limit of Section

6.2 above or establish by mutual agreement with Contractor any necessary changes to the proposed Rates to make such confirmation.
(iii) Not later than October 20th, the City Manager shall inform the City Council in writing of his or her determination regarding the proposed new Rates and the City Council shall be entitled to review and confirm that the proposed Rates are within the limit of Section 6.2 above or establish by mutual agreement with Contractor any necessary changes to the proposed Rates to make such confirmation, not later than November 20th. Any Rates shall become effective on the following January 1st
, provided that Contractor shall post notice of the revised Rates at the Transfer Station not later than December 1st
.
(iv) In the event that the CPI or the Fuel Index described in Section 6.2 above shall be discontinued or materially modified during the term of this Agreement, the parties shall together select a replacement index and/or otherwise change Section 6.2 above so as to replicate, as nearly as possible, the mutual intention of the parties to rely on the results of either index described in Section 6.2 as in effect on the date hereof.

6.3 Modification Based on Changes in Pass-Through Costs. In addition to adjustments under Section 6.2 above, each Rate shall be adjusted to reflect changes in Pass-Through Costs that are not the subject of Rate adjustments pursuant to Section 6.2 above, as follows. Using the section of the Calculation entitled “Revenue Base,” each Rate shall be increased by an amount equal to the increase in applicable Pass-Through Costs, and decreased by an amount equal to the decrease in applicable PassThrough Costs, in each case so as to cause such Rate to compensate for such change in Pass-Through Costs as of the date such change becomes effective and either payable by or a benefit to Contractor, and taking into account the increase or decrease in Franchise Fees payable in respect of such change.

Changes in Pass-Through Costs resulting from a change in Disposal Facilities or Processing Facilities shall cause an increase in Rates as provided herein only if Contractor has complied with Sections 4.1.1 and 4.1.2 and City has approved the successor or alternate Facilities in accordance with such Sections, subject to Section 4.6.

6.4 Five Year Review. Once every five (5) years (beginning no later than April 2, 2016 for purposes of adjusting the Rates effective January 1, 2017), City shall conduct a review for the purpose of determining whether or not the automatic adjustments provided in Sections 6.2, 6.3 and 6.5 have adequately adjusted the Rates to cover the actual increase or decrease in the Contractor’s reasonable operating costs or have exceeded those costs and whether the Rates remains fair to the ratepayer and the Contractor. Depending on the results of that review the City may approve an increase or decrease in the Rates. City shall complete each such review and adjustment, if any, at least three months (3) prior to the beginning of such year (by September 30, 2016 in the case of the first such review), and Contractor shall cooperate with such review. In conducting each such review, City shall consider the following information: financial records of Contractor (including operating expenses and revenues and Disposal, Processing, Regulatory and other costs of Contractor, and Contractor revenues), the factors described in Attachment 4

12 Section 6.5 below, and rates charged for comparable services at similar facilities. Increases or decreases in the Rates pursuant to this Section 6.4 shall be subject to the notice and public hearing requirements in the Ukiah City Code, Division 4, Chapter 6, Article 1, commencing with Section 3950. The City may conduct such investigation as it deems necessary to perform this review and Contractor shall cooperate with such investigation, which may include the City’s inspection and copying of Contractor records and review and/or audit of Contractor’s financial records by a City retained CPA, the costs of which shall be reimbursed to City from Base Revenue but treated as a Pass-Through Cost for rate setting purposes.

6. 5 Modification Based on Extraordinary Items. In addition to adjustments under Sections

6.2, 6.3, and 6.4 above, Contractor may request an increase in the Rates if Contractor’s costs increase or its revenues decrease solely as the result of extraordinary circumstances beyond its control that could not have been reasonably anticipated by Contractor (such as a Change in Law) and if the increase in costs or decrease in revenues unavoidably adversely affects Contractor’s opportunity to operate at a reasonable profit. Contractor shall have the burden of producing evidence satisfactory to City demonstrating its need for a rate increase prior to the regular Five Year Review pursuant to Section 6.4 above, including, but not limited to, Reviewed or Audited financial statements of Contractor, if requested by City. The City Council shall consider the request pursuant to the notice and public hearing procedures in Ukiah City Code, Division 4, Chapter 6, Article 1, commencing with Section 3950.

6.6 Billing. Contractor shall charge and collect from all customers at the Transfer Station upon receipt of materials, or bill such customers, for all services hereunder. Interest of one percent (1%) per month or the highest rate permitted under applicable law, whichever is less, shall be applied to any past due amounts until paid in full. Amounts shall be past due if not paid within thirty (30) days of billing. Contractor shall have the right to refuse service to any customer that is more than sixty (60) days delinquent on his, her or its account.

7. Provisions Applicable to Equipment and Personnel.

7.1 Equipment. Contractor shall provide all equipment necessary to perform the services described in the Agreement, sufficient in number and capacity to efficiently perform the work required by this Agreement. All equipment used at the Transfer Station shall be maintained in good working condition and be suitable for use at the facility without causing unreasonable wear and tear or damage to the improvements constructed on the Site. The equipment shall comply with all applicable legal requirements. Contractor shall keep the outside of the truck bodies free from dirt and filth, and shall clean the inside of the trucks in a sanitary manner on a regular basis. Suitable measures shall be taken to prevent refuse from falling into public streets or places. Contractor shall keep all trucks freshly painted in a uniform manner, and the firm name or logo, telephone number, and truck number of each truck shall appear in a conspicuous manner. Contractor shall keep all equipment in good maintenance and repair, regularly inspect same, and keep accurate records of all maintenance.

7.2 Facility Maintenance. Contractor shall maintain the Site and the tipping floor in an orderly condition with proper signage to direct users to the appropriate locations on the Site to conduct their business. All refuse deposited on the tipping floor shall be removed within 24 hours of its deposit.

Contractor shall employ reasonable measures to control noise, odors, litter and other nuisance conditions.

Contractor will be responsible for all repair, maintenance and replacement of the Transfer Station in order to keep it in sound working order, including, without limitation, the tipping floor surface, driveways, gates, fences, electrical distribution systems, ventilation and heating, fire sprinklers, floor drains, walls, doors, roof, restrooms, fixed equipment and landscaping. Contractor will keep the tipping floor free of major cracks, holes and breaks, and will keep any tractor not equipped with rubber tires or tracks from Attachment 4

13 coming in contact with the tipping floor or driveways. All repairs made by Contractor will be with an identical article or material or an equal approved by City.

7.3 Transport of Materials. Contractor shall not allow Solid Waste, Recyclables, Green Waste, Food Waste, Mixed Organic Waste or Wood Waste to blow or fall from any vehicle used for transportation. Contractor shall clean up any and all spills, including oil and debris on the streets, resulting from its operations. Should Contractor fail to promptly clean up such spills resulting from its operations after notice from City, Contractor shall be liable to City for all reasonable costs incurred by City in doing so.

7.4 Staffing. Contractor shall employ sufficient staff to provide service in a safe manner at the Transfer Station, and to meet its obligations under this Agreement, including, without limitation, a Transfer Station Manager. All personnel shall be qualified to perform their assigned tasks and will possess the required licenses, permits or training for the tasks they perform. Contractor shall provide suitable operational and safety training for all of its employees who utilize or operate vehicles or equipment at or in connection with the operation of the Transfer Station. Contractor shall use its best efforts to assure that all employees present a neat appearance, conduct themselves in a courteous manner, and perform the work as quietly as possible.

7.5 Subcontractors. Contractor shall not subcontract any of the services under this Agreement without the prior written consent of City.

8. Records and Reports.

8.1 Contractor shall keep and maintain accurate books and records clearly showing its revenues and expenses in connection with the operations provided for in this Agreement. Contractor will also keep and preserve records of all loads of Acceptable Waste, Recyclables, Food Waste, Mixed Organic Waste, Green Waste, Wood Waste and Household Hazardous Waste received at the Transfer Station, and will report to City every three (3) months during the term hereof the total quantities and payments received. Contractor shall provide written notice to City of the location of its records and any change in the location.

8.2 City’s designated representative shall be allowed access to the Transfer Station Site at all times when the Transfer Station is open, and upon prior written notice to Contractor shall be allowed to inspect and copy any and all records of Contractor containing information about the operation of the Transfer Station for purposes of audit or to verify the recordkeeping procedures of Contractor. City’s designated representative shall also be allowed access to the Site during non-operating hours upon prior written notice to the Transfer Station Manager. Contractor shall fully cooperate with City in reviewing or investigating information in Contractor’s records or pertaining to Transfer Station operations.

9. Hold Harmless and Insurance.

9.1 Contractor shall indemnify and hold harmless City, its City Council, boards, commissions, officers, agents, representatives and employees from any and all actions, claims or damages brought for or on account of injuries to or death of any person or damage to property of all kinds resulting from or arising out of the operations of Contractor, its officers, agents, employees or servants pursuant to this Agreement. The duty of Contractor to indemnify and hold harmless shall include the duty to defend as set forth in California Civil Code Section 2778.

Attachment 4

14 9.2 Contractor shall have in effect during the term of this Agreement, workers' compensation and employer liability insurance providing full statutory coverage.

9.3 Contractor shall take out and maintain during the term of this Agreement, liability insurance for the following types and minimum amounts:
(a) General liability, including comprehensive form, premises operations, products/completed operations, hazard, contractual insurance, broad form property damage, independent contractors and personal liability, with limits for bodily and property damage combined of $500,000 each occurrence and $500,000 aggregate.
(b) Automobile liability, including comprehensive form, owned, hired and non-owned, with a limit of $1,000,000 for bodily injury and property damage combined. (c) Excess liability, umbrella form, with a limit for bodily injury and property damage combined of $5,000,000 each occurrence and $5,000,000 aggregate. (d) Pollution and remediation liability with limits in an amount of not less than one million dollars ($1,000,000) per occurrence and two million dollars ($2,000,000) annual aggregate insuring against loss, the cost of remediation and legal defense as a result of pollution conditions arising out of the collision, upset or overturn of Contractor vehicles in conjunction with this Agreement. (e) Broad form fire insurance approved by City, jointly in the names of Contractor and City, covering not less than the full replacement cost of all improvements on the Transfer Station Site. In the event of damage to any portion of the Transfer Station, Contractor shall rebuild, repair or otherwise reinstate the damaged improvements in good and substantial manner, with such reconstruction to commence within ninety (90) days after the damage occurs.

Insurance is to be placed with admitted California insurers with an 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.

Insurance certificates evidencing the required coverage shall be filed with City and shall be subject to approval by the City Attorney. City, its City Council, boards, commissions, officers, agents and employees shall be named as additional insureds on any such policies of insurance which shall also contain a provision that the insurance afforded thereby shall be primary. No such policy shall be cancelled or modified except upon thirty (30) days' prior written notice to City.

9.4 Contractor shall post a $250,000 performance bond or financial instrument reasonably acceptable to the City Manager as security for Contractor’s faithful performance of each and every term, covenant and condition of this Agreement to be performed by Contractor, provided that the cost of such bond or other instrument shall be included in the Operating Cost Component.

10. Remedies upon Default.

10.1 Contractor shall be deemed in default of this Agreement in the event Contractor defaults in the performance of any of the duties to be performed by it under the terms of this Agreement and fails to cure the breach as further provided in this Section 10.1. City shall give Contractor written notice, either by mail or by personal service, setting forth the default. Contractor shall correct such default within thirty (30) days after service of such notice (within seven (7) days if City determines that the public health or safety is at risk) unless the default cannot, by its nature, be cured within said period, in which case the cure period shall be extended for such additional time as is reasonably necessary to effect a cure, provided that Contractor shall commence efforts to effect a cure as soon as practicable and shall diligently pursue the cure. . If Contractor commits three or more breaches of material provisions of this Agreement within an eighteen (18) month period, whether cured or not, the Contractor shall be deemed to Attachment 4

15 have committed “Multiple Breaches.”

10.2 In the event Contractor’s default described in Section 10.1 is of a material provision of this Agreement and is not cured as set forth in Section 10.1, or if Contractor has committed Multiple Breaches (defined to mean three or more defaults of material provisions of this Agreement within an eighteen (18) month period, whether cured or not) (“Material Default”), City shall have the following remedies:

10.2.1 Liquidated Damages. The parties acknowledge that City will incur damages as a result of a Material Default, and that such Material Default may not warrant termination of this Agreement. The parties agree that as of the time of the execution of this Agreement, it is impractical, if not impossible, to reasonably ascertain the extent of damages which shall be incurred by City as a result of a Material Default. The factors relating to the impracticability of ascertaining damages include, but are not limited to, the fact that: (i) substantial damage results to members of the public who are denied services or denied quality or reliable service; (ii) such breaches cause inconvenience, anxiety, frustration, and deprivation of the benefits of the Agreement to individual members of the general public for whose benefit this Agreement exists, in subjective ways and in varying degrees of intensity which are incapable of measurement in precise monetary terms; (iii) that exclusive services might be available at substantially lower costs than alternative services and the monetary loss resulting from denial of services or denial of quality or reliable services is impossible to calculate in precise monetary terms; and (iv) the termination of this Agreement for such breaches, and other remedies are, at best, a means of future correction and not remedies which make the public whole for past breaches. Liquidated damages shall be City’s exclusive damages remedy for any individual Material Default which does not result in termination of this Agreement by City. The amount of liquidated damages is $1,000 for each day the Material Default continues after Contractor fails to cure until it is either cured or City terminates this Agreement.

10.2.2 Franchise Termination. Without further notice and without suit or other proceedings, City may cancel and annul the rights and privileges of this Agreement upon a Material Default. Nothing in this Section shall prohibit the parties from meeting to discuss ways to resolve the issue. In the event of termination of this Agreement for Material Default, City shall have the right forthwith to grant a franchise to another person or to take possession of the trucks and other equipment of Contractor used to perform work under this Agreement. City shall have the right to retain possession of the trucks and other equipment for up to one (1) years after such termination and City shall pay Contractor the reasonable rental value of such trucks and other equipment, and keep them in good maintenance and repair, during the time the same are used by City. City shall also have access to Contractor's records for the purpose of billing customers during the period City is providing the services described in this Agreement, and shall retain all fees collected for such services.

Upon termination of this Agreement for any reason, Contractor shall have the obligation to sell to City and City shall have the option to purchase the equipment used by Contractor to perform its obligations under this Agreement in operating the Transfer Station and transporting Solid Waste to Disposal and Processing Facilities and other markets (the "equipment"). Such option shall be exercised by written notice to Contractor at least six (6) months prior to the termination date, unless the Agreement is terminated based on a Material Breach, in which event notice of the election must be given within sixty (60) days after the termination date.

The purchase price that City shall pay Contractor for the equipment shall be its cost less depreciation to the date of purchase calculated on a straight-line basis over its estimated useful life as shown on the books of Contractor.

Attachment 4

16 10.2.3 Other Remedies. Upon termination of this Agreement based on a Material Default, City shall have all other remedies in law or equity for such Material Default.

10.3 If a dispute arises between City and Contractor regarding fees or any other term or provision of this Agreement, the parties agree to meet and confer in good faith to resolve the dispute.

Either party may request to meet and confer by written notice to the other party. Alternatively, the parties may agree to participate in non-binding mediation. If the dispute is not resolved within thirty (30) days after the written request to meet and confer has been given or after the parties have agreed to non-binding mediation, the matter, other than an action seeking specific performance or other equitable relief, damages of Twenty Five Thousand Dollars ($25,000) or less, or indemnification or insurance coverage pursuant to Section 9, shall be submitted to non-binding arbitration in accordance with Title 9 of the California Code of Civil Procedure, commencing with Section 1280, before a single neutral arbitrator ("Arbitrator") in the Mendocino County. The Arbitrator shall be an attorney with at least ten (10) years’ experience or a retired judge (or a person having comparable qualifications) and shall be mutually agreed upon by the parties. If the parties are unable to agree on an Arbitrator, the Arbitrator shall be appointed by the superior court in accordance with Cal. Code Civ. Proc. §1281.6. The fees and expenses of the Arbitrator shall be borne equally by the parties.

In the event such non-binding arbitration does not resolve the matter and in any other dispute that results in any court action, the parties waive any right to a jury trial and agree that any such action shall be filed in the federal or state courts in and for Mendocino County, each party hereby consenting to the jurisdiction of and venue in such courts, the matter shall be governed by the internal laws of the State of California (irrespective of choice of law principles), and the prevailing party shall be entitled to recover its reasonable attorneys’ fees, costs and disbursements incurred in such action from the non-prevailing party.

10.4 If Contractor shall at any time during the term of this Agreement or any extension thereof, become insolvent, or if proceedings in bankruptcy shall be instituted by or against Contractor, or if Contractor shall be adjudged bankrupt or insolvent by any Court, or if a receiver or trustee in bankruptcy or a receiver of any property by Contractor shall be appointed in any suit or proceeding brought by or against Contractor, or if Contractor shall make an assignment for the benefit of creditors, then and in each and every such case, and provided that such proceedings, adjudication, appointment or assignment, as the case may be, continue in effect for ninety (90) days without being vacated, removed or withdrawn, this Agreement shall immediately cease and come to an end, and the rights and privileges granted shall immediately be cancelled and annulled without notice or action required on behalf of City.

10.5 Notwithstanding any other provision herein, no default, delay or failure to perform on the part of either party shall be considered a breach hereunder if such default, delay or failure to perform is due to causes beyond such party's control, including, but not limited to, riots, civil disturbances, actions or inactions of governmental authorities, epidemic, war, embargoes, severe weather, fire, earthquake, acts of God, defaults by the other party or defaults by carriers. In the event of any such default, delay or failure to perform, any dates or times by which the affected party otherwise is scheduled to perform shall be extended for a period of time equal in duration to the additional time required because of the excused default, delay or failure to perform.

11. Assignment.

11.1 Contractor shall not directly or indirectly, voluntarily or involuntarily assign, mortgage, Attachment 4

17 pledge or encumber any interest in all or a part of this Agreement without the prior written consent of City. The City Council shall have the right to determine in its sole discretion whether to approve, conditionally approve or deny any request by Contractor for approval under this Section. Any action requiring City Council approval under this Section that occurs without such approval shall give City the right to terminate this Agreement without prior notice to Contractor or its successors or assigns. For purposes of this Section, any transaction involving the transfer, sale or exchange of stock which results in a change in majority control of Contractor from its owners as of the date hereof (excluding transfers between such owners and transfers by any such owners to revocable living trusts for the benefit of their families) shall be an assignment subject to City review and approval.

11.2 Any written agreement between Contractor and a Disposal Facility for the Disposal of Solid Waste received at the Transfer Station entered into after the date of this Agreement, and any written agreement between Contractor and a Processing Facility for the Processing of Recyclables received at the Transfer Station entered into after the date of this Agreement, shall provide that: (a) City is a third party beneficiary with the same right as a party to enforce such agreement; (b) any assignment of such agreement shall require City approval; (c) in the event such agreement is terminated during its term or any extended term by Contractor or by the Disposal Facility or Processing Facility operator based on an uncured default by Contractor under such agreement, such agreement may be assumed by City without change, including as to Disposal or Processing rates and terms; and (d) if terminated based on an uncured default by Contractor, any payments due but unpaid under such agreement on the date of termination shall continue to be an obligation of Contractor and the obligation to make any such payments shall not be assumed by City upon its assumption of such agreement.

12. City’s Options to Purchase Site, Improvements and Equipment.

12.1 City’s Options to Purchase Site and Improvements. On December 31, 2016, Owner and Contractor shall have the obligation to sell and the City shall have the option to purchase from Owner both the Transfer Station Site and all the improvements on the Transfer Station Site (the “Improvements”) for an aggregate purchase price of One Dollar ($1.00). City shall be deemed to have exercised its option to purchase the Transfer Station Site and the Improvements, unless it has given Contractor written notice prior to December 31, 2016 that it has elected not to exercise the option. Title shall transfer to City within thirty (30) days after December 31, 2016. The purchase shall be on a then “as-is” basis, and otherwise on commercially reasonable terms then applicable to the purchase and sale of real property, except that Owner shall indemnify City against any cost or liability arising from hazardous or toxic waste contamination on the Transfer Station Site which occurred before escrow closes on City’s purchase of the Transfer Station Site. At closing, Owner shall convey to City clear, unencumbered fee title to the Transfer Station Site and City shall enter into a lease for the Transfer Station Site and the Improvements with Contractor in the form attached hereto as Exhibit F. Owner or Contractor’s failure to co-operate in City’s purchase of the Transfer Station Site and Improvements shall be a Material Default.

12.2 Prior Termination. If this Agreement is terminated before December 31, 2016 for any reason, City shall have the option to do all, but not part, of the following: (a) purchase or lease from Owner the Transfer Station Site pursuant to Sections 13.1 or 13.2, (b) purchase from Owner the Improvements pursuant to Section 13.3, and (c) purchase from Contractor all the Equipment pursuant to Section 10.2.2. City’s option under this Section 12.2 shall be exercised by written notice to Owner and Contractor given within sixty (60) days before the termination date, unless the Agreement is terminated based on a Material Breach, in which event notice of the election must be given within sixty (60) days after the termination date.

Attachment 4

18 13. Purchase or Lease of Site and Purchase of Improvements.

13.1 Purchase of Site. If City elects to purchase the Transfer Station Site in accordance with Section 12.2 above, Owner shall sell City the Transfer Station Site for a purchase price equal to the lesser of (a) $487,000 increased by the percentage increase in the CPI between November 7, 2001 and the date of termination of this Agreement, or (b) the then actual fair market value of the Transfer Station Site; provided, however, that the purchase price shall be One Dollar ($1.00) if the closing of the purchase occurs after September 30, 2016. The purchase shall be on a then “as-is” basis, and otherwise on commercially reasonable terms then applicable to the purchase and sale of real property, except that Owner shall indemnify City against any cost or liability arising from hazardous or toxic waste contamination on the Transfer Station Site which occurred before escrow closes on City’s purchase of the Transfer Station Site. At closing, Owner shall convey to City clear, unencumbered fee title to the Transfer Station Site.

13.2 Lease of Site. If City elects to lease the Transfer Station Site in accordance with Section

12.2 above, City’s lease shall commence on January 1, 2017 or thirty (30) days after the notice of exercise in the case of termination for Material Default, and expire ten (10) years thereafter. Rent under the lease shall equal the then fair market lease value of the Transfer Station Site (excluding any value attributable to the Improvements) and the lease shall otherwise be on commercially reasonable terms then applicable to the ground lease of real property. If City and Owner are unable to agree on the fair market lease value, they shall select and share the cost of an appraiser to determine such value. If they cannot agree on a single appraiser, each may obtain an appraisal of such value from a qualified appraiser of its choice. If the separate appraisals are within ten percent (10%) of each other, fair market lease value shall be the average of the two appraisals. If the appraisals differ by more than ten percent (10%), the two appraisers shall select a third appraiser to review the appraisal reports and determine which report represents the fairest appraisal. The appraisal selected by the third appraiser shall constitute the fair market lease value of the Transfer Station Site. The parties shall each bear the expense of their separately selected appraisers and share equally the cost of the third appraiser.

13.3 Purchase of Improvements. If City elects to purchase the Improvements in accordance with Section 12.2 above, the purchase price that City shall pay Owner for the Improvements shall be One Dollar ($1.00)

14. Waiver. The waiver by any party of any breach or violation of any term or condition of this Agreement or of any provision of law by the other party must be in writing signed by the party to be charged, and shall not be deemed to be a waiver of the term, condition or provision of law, or of any subsequent breach or violation of the same or any other term, condition or provision of law. The acceptance by City of any Surcharge or other fee or other monies which may become due hereunder to City shall not be deemed to be a waiver of any preceding breach or violation by Contractor.

15. Administration. The administration and enforcement of this Agreement shall be the responsibility of the City Manager or a designated representative of that office. This section is not intended to indicate or suggest the City Manager has the authority to grant, amend, or revoke the rights referenced herein or to prevent the City Manager from seeking approval from the City Council for any decision the City Manager is required or authorized to make hereunder.

16. Independent Contractor. Contractor, its employees and agents are independent contractors and not employees or agents of City.

Attachment 4

19 17. Notices. Whenever notice or a document is required or permitted to be served or given hereunder, it shall be deemed given or served, when received if delivered by fax or email (with acknowledgment of receipt), certified U.S. Mail, overnight courier, such as UPS or Federal Express, or 48 hours after deposit in the U.S. Mail with first class postage affixed. Any such document or notice shall be addressed as follows:

City: City Manager
Ukiah Civic Center
300 Seminary Avenue
Ukiah, California 95482
FAX:

Email:

Contractor: Solid Wastes Systems, Inc.

Attn: David M. Carroll, President
P. O. Box 60
Ukiah, California 95482
FAX:

Email:

Owner: Yulupa Investments, LLC
Attn: David M. Carroll, President
P. O. Box 60
Ukiah, California 95482
FAX:

Email:
or to such other person or address as may be specified from time to time in writing by any party in accordance with this Section.

18. Amendments. This Agreement may be amended from time to time only by written agreement between the parties signed by an authorized representative of each party. Any party may at any time request that the service or other provisions in this Agreement be modified by delivering written notice of its requested modifications to the other parties. Within thirty (30) days after receipt of any such request, the parties shall meet and negotiate in good faith on adopting such requested modifications, including, without limitation, any change to the Rates necessitated by such modifications, provided that nothing herein shall obligate any party to agree on any such requested modifications.

19. Successors and Assigns. This Agreement shall be binding upon, and shall inure to the benefit of, the permitted successors and assigns of the parties.

20. Integration; Severability. This Agreement, including the Exhibits hereto, constitutes the entire agreement of the parties with respect to the subject matter hereof and supersedes all prior or contemporaneous agreements between the parties, whether written or oral, relating to such subject matter, including the Prior Agreement. If a court finds any provision of this Agreement invalid or unenforceable as applied to any circumstance, the remainder of this Agreement and the application of such provision to Attachment 4

20 other persons or circumstances shall remain in effect. The parties further agree to replace such void or unenforceable provision with a valid and enforceable provision which will achieve, to the extent possible, the economic, business and other purposes of the void or unenforceable provision.

IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first set forth above.

Solid Wastes Systems, Inc.

By: _______________________
President
Yulupa Investments, LLC

By: _______________________
President
City of Ukiah

By: _______________________
City Manager
ATTEST:
________________________
City Clerk

APPROVED AS TO FORM:
________________________
City Attorney
Attachment 4

21 EXHIBIT A

FIRST AMENDED AND RESTATED AGREEMENT FOR RECEIPT OF WOOD WASTE,

GREEN WASTE AND MIXED ORGANIC WASTE
Attachment 4

22 EXHIBIT C

LEGAL DESCRIPTION OF TRANSFER STATION SITE
Attachment 4

23 EXHIBIT D

RATE SCHEDULE
Attachment 4

24 EXHIBIT E

TRANSFER STATION RATE CALCULATION
Attachment 4

25 EXHIBIT F

TRANSFER STATION LEASE
Attachment 4

26 EXHIBIT G

CURRENT GEOGRAPHIC AREA SERVED BY TRANSFER STATION
The areas marked as Franchise Areas 3 and 2 (Inland) on the attached map, including the incorporated City limits.

Attachment 4

COSTS Subject to adjustment Cost Index Adjustment Allowed Operating Costs subject to CPI $2,522,520.97 CPI $ 67,351.31 Fuel $300,000.00 Fuel ($2,938.41)
Disposal - Garbage $1,202,461.56 Contract rate Pass Through $ 36,073.85 Disposal - Processing GW $300,534.30 Negotiated Pass Through $ 15,321.47 Disposal - Processing Recycling $84,641.25 Pass Through $17,854.50 Pass Through $ -
Maint / Prop Tax $2.36/ton ** $92,619.73 CPI Pass Through $ 2,472.95 City Rent $10/ton $392,456.49 Lease rate Pass Through $ - City Landfill Fee $14/ton $549,439.10 Set by City Pass Through $ - MSWMA Fee $9.50/ton $278,711.42 Set by City Pass Through $ - Total COSTS Subject to adjustment $5,723,384.83 $ 136,135.67 Adjusted Costs $5,859,520.50
Adjustments: $0.00 $ -
Total Adjustments $0.00 $ -
Adjusted Cost $5,723,384.83 $ 136,135.67
Revenue base
Comparison Year Revenue $5,033,284.36
Fuel -$2,938.41
Disposal - garbage $36,073.85
Disposal - processing $15,321.47
CPI adjustment $67,351.31
City Landfill Fee $14/ton $0.00
Maint / Prop Tax $2.36/ton $2,472.95
Disposal Processing - Recycling $17,854.50
$0.00
Revenue change - Contractor $136,135.67 Less: City & MSWMA Fee Adjustments Adjusted revenue $5,169,420.03
Adjusted Revenue Difference $136,135.67
Current Adjustment New
Contractor Rate increase as a percent 2.70% $109.56 $2.96 $112.52 MSWMA Rate increase as a percent 1.54% $9.50 $0.15 $9.65 City Rate increase as a percent 0.00% $24.45 $0.00 $24.45 $143.50 Total Rate $146.62
EFFECTIVE RATE ADJUSTMENT PERCENT 2.17%
Solid Wastes Systems Transfer Station
Effective Date January, 2026
Annual Adjustment Calculations
Using 2024-2025 Data (July to June)
Attachment 2
*Updated on 10/14/25 to include correct
rounding of rates on the 2026 Transfer
Station Rate Schedule on page 4 of this
attachment

Solid Wastes Systems Transfer Station
Effective Date January, 2026
Annual Adjustment Calculations
Using 2024-2025 Data (July to June)
Fuel - June to June (EIA Petroleum & Other Liquids)
See Fuel cost adjustment worksheet
CPI US City Average- Jun-24 to Jun-25 (normal year is June to June) Jun-24 Jun-25 Index Increase (Decrease)
314.175 322.561 8.386
CPI % Change 2.67%
Landfill Fee Jan 2025 to Jan 2026
January 2025 January 2026 Increase (Decrease)
$ 33.63 $ 34.64 $ 1.01
Disposal - Garbage Cost % Change 3.00%
Disposal Processing Fee Jan 2025 to Jan 2026 CPI Jun to Jun January 2024 January 2026 Jun-24 Jun-25 Increase (Decrease) $ 67.21 $ 70.64 314.175 322.561 3.426
Disposal - Green Waste Cost % Change 5.10%
Transfer Station MSW Tonnage at gate, Year to Year
12 months ended June 2024 12 months ended June 2025 Increase (Decrease) 39,220.81 39,245.65 24.84
Tonnage % Change 0.06%
City Landfill Fee June to June
June 2024 June 2025 Increase (Decrease)
$ 14.00 $ 14.00 $ 0.00
City Landfill Fee % Change 0.00%
MSWMA Fee June to June
June 2024 June 2025 Increase (Decrease)
$ 9.50 $ 9.65 $ 0.15
MSWMA Fee % Change 1.54%
Recycle Tip Fee June to June
12 months ended June 2024 12 months ended June 2025 Increase (Decrease) $66,786.75 $84,641.25 $17,854.50
Worksheet for computing the change in various indexes and factors which comprise the components on which rates are adjusted

Calculated NEW
2026 2026
2025 FA Rate
Item Rate Rate Rounded *
MSW - Ton $143.50 $146.61 $146.60
MSW - Yard $32.50 $33.22 $33.20
Minimum Gate Fee - MSW Up to 3 cans $16.25 $16.61 $16.60 Per Can Rate - 32 gallon After 3 cans $5.40 $5.54 $5.55 Green Waste - Ton $71.90 $73.46 $73.45
Green Waste - Yard $10.45 $10.68 $10.70
Minimum Gate Fee - Green Waste $10.19 $10.41 $10.40
Mixed Load - Additional Charge $32.25 $33.12 $33.10
Appliances $17.55 $18.02 $18.00
Oil Filters - Small $0.65 $0.67 $0.65
Oil Filters - Medium $1.10 $1.13 $1.15
Oil Filters - Large $1.50 $1.54 $1.55
Concrete - Ton $113.10 $116.15 $116.15
Dirt - Ton $113.10 $116.15 $116.15
Sheetrock - Clean $72.10 $74.05 $74.05
Sheetrock - Dirty $113.10 $116.15 $116.15
Tires - Bicycle $2.00 $2.05 $2.05
Tires - Motorcycle $3.95 $4.06 $4.05
Tires - Passenger Car $5.90 $6.06 $6.05
Tires - Passenger Car with Rim $9.20 $9.45 $9.45
Tires - Truck $12.55 $12.89 $12.90
Tires - Truck with Rim $17.00 $17.46 $17.45
Tires - Tractor 66.70 - 504.55 66.71 - 504.55 66.70 - 504.55 E-Waste - Computers No Charge No Charge No Charge
E-Waste - Monitors No Charge No Charge No Charge
Scrap Metal No Charge No Charge No Charge
* Rates are rounded to the nearest five cents
Solid Wastes Systems, Inc.

Transfer Station Rate Schedule
Effective Date January 2026

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

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

Solid Waste Systems
Disposal Breakdown by Stream & Facilty
Potrero - MSW
$ PRS - GYW $
PRS -
Recycling $

SWS MSW
Inbound
Tons
SWS Compost
Inbound $$
2024-07 101,502 25,296 5,794 3,040 11,795
2024-08 108,211 30,979 4,633 3,457 12,273
2024-09 103,160 37,763 6,635 3,197 9,754
2024-10 106,305 30,964 5,178 3,327 15,755
2024-11 90,266 19,707 5,284 2,806 19,769
2024-12 100,841 23,212 12,373 3,032 22,420
2025-01 100,150 26,233 9,404 2,739 16,039
2025-02 84,330 12,881 7,505 2,960 10,024
2025-03 94,027 15,759 7,169 3,427 10,943
2025-04 110,288 19,709 6,773 3,322 12,773
2025-05 101,811 26,413 5,122 3,077 13,679
2025-06 101,571 31,618 8,771 2,901 20,083
Total $ 1,202,462 $ 300,534 $ 84,641 37,284 $ 175,306

Rent Franhise Fees MSWMA
2024-07 $ 34,496 $ 48,294 $ 23,098
2024-08 $ 32,503 $ 45,504 $ 21,855
2024-09 $ 34,307 $ 48,030 $ 23,036
2024-10 $ 31,560 $ 44,183 $ 21,157
2024-11 $ 34,125 $ 47,775 $ 22,795
2024-12 $ 29,398 $ 41,157 $ 19,720
2025-01 $ 30,285 $ 42,399 $ 20,285
2025-02 $ 32,879 $ 46,031 $ 10,134
2025-03 $ 28,878 $ 40,429 $ 21,957
2025-04 $ 31,709 $ 44,393 $ 28,177
2025-05 $ 36,365 $ 50,911 $ 31,004
2025-06 $ 35,952 $ 50,333 $ 35,494
Total $ 392,456.49 $ 549,439.10 $ 278,711.42
39,245.65 Total Tons

Agenda Item No: 8.j.

MEETING DATE/TIME: 10/15/2025

ITEM NO: 2025-1180

AGENDA SUMMARY REPORT
SUBJECT: Notification of Emergency Contract with Donahoo, Inc in the Amount of $45,320 for Slide Mitigation Work at the Ukiah Landfill, and Approval of Contract and Budget Amendment.

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

1. Donahoo Inc - Emergency Landfill Slide Repair 2425-218 - Contract

2. Landfill Change Order Request
Summary: Council will Receive Notification of Emergency Contract with Donahoo, Inc in the Amount of $45,320 for Slide Mitigation Work at the Ukiah Landfill, and Consider Approval of Contract and Budget Amendment.

Background: On September 16, 2025, Donahoo, Inc. was awarded an emergency contract to mitigate slides and perform other maintenance activity at the former Ukiah Landfill. The original contract amount was $45,320 and included mobilization, slide mitigation, washout repair, culvert replacement, and compaction. See Attachment 1 for a copy of this emergency contract.

Discussion: Upon mobilization, it was observed that two additional slips had occurred, requiring repair and hydroseeding for stabilization. The cost of additional work is $18,250.00. See Attachment 2 for a copy of this Change Order Request.

The original budget appropriation for Fiscal Year 25/26 maintenance was $300,000. Since the start of the new fiscal year, four contracts totaling $320,720 have been executed, resulting in a budget overage of $20,720. In addition to the additional work of $18,250, a budget amendment in the amount of $38,970 is being requested of Council to ensure sufficient appropriation.

Recommended Action: Receive Notification of Emergency Contract with Donahoo, Inc in the Amount of $45,320 for Slide Mitigation Work at the Ukiah Landfill, and Approve of Contract and Budget Amendment.

BUDGET AMENDMENT REQUIRED: YES
CURRENT BUDGET AMOUNT: 70024500.52100: $300,000
PROPOSED BUDGET AMOUNT: 70024500.52100: $338,970
FINANCING SOURCE: Landfill Abatement Revenue Funds
REVENUE: No GRANT: No
PREVIOUS CONTRACT/PURCHASE ORDER NO.: Contract 2425218
COORDINATED WITH: Myles Fisette, Purchasing Manager; Jason Benson, Senior Engineer; Dave Kirch, Fleet and Facilities Supervisor; and Tim Eriksen, Director of Public Works/City Engineer STRATEGIC PLAN (SP): N/A
CLIMATE INITIATIVES (CI): N/A
GENERAL PLAN ELEMENTS (GP): N/A

COU No 2425-218
1 SHORT FORM CONSTRUCTION CONTRACT
This Agreement is made and entered on September 16th, 2025, in Ukiah, California, by and between Donahoo, Inc, a
corporation("Contractor") and the City of Ukiah ("City"), a general law municipal corporation.

RECITALS:

1. The plans and specifications for this work ("the Work") are contained in Exhibit A, which is attached hereto and incorporated herein by this reference.

2. Contractor is properly licensed and qualified to perform the work.

3. Whenever this Agreement calls for City approval or
notification, the approval or notification must be signed by the City Manager or his or her designee.

AGREEMENT:

Wherefore, in consideration of the foregoing facts and the terms and conditions as further stated herein, the parties hereby agree as follows.

1. PERFORMANCE OF THE WORK
Contractor will perform the Work as further provided herein.

1.1 Time of Performance. Contractor shall commence the Work when receiving a formal Notice to Proceed, and shall complete the Work in a reasonable amount of time as coordinated with the City.

1.1.1.  [check if applicable] It is agreed by the parties to the contract that time is of the essence and that, in case all the work is not completed before or upon the expiration of the time limit as set forth, damage, other than those cost items identified in section 1.1.2, will be sustained by the City and that it is and will be impracticable to determine the actual amount of damage by reason of such delay; and it is therefore agreed that, subject to Sections 1.13-1.14, below, the
Contractor will pay to the City the sum of five hundred dollars ($500.00) per day for each and every calendar day's delay beyond the time prescribed.

ATTACHMENT 1

COU No 2425-218
2 1.1.2  [check if applicable] In case the work called for under this contract is not completed within the time limit stipulated herein, the City shall have the right as provided hereinabove, to extend the time of completion thereof. If the time limit be so extended, the City shall have the right to charge to the Contractor and to deduct from the final payment for the work the actual cost to the City of engineering, inspection, superintendence and other overhead expenses which are directly chargeable to the contract and which accrue during the period of such extension, except that the cost of final unavoidable delays shall not be included in such charges.

1.2 Construction of Contract Documents. Contractor will perform the Work in compliance with the plans and specifications set forth in the attached Exhibit A. If there is any inconsistency or conflict between the plans and the specifications, the specifications will prevail. If there is any inconsistency between the plans and the specifications and this agreement, the terms of this Agreement shall prevail, unless expressly stated otherwise in a particular specification.

1.3 Contractor furnished items. Contractor will furnish all necessary labor, materials, tools, equipment, and transportation necessary to perform the Work.

1.4 SB 854 requirements

1.4.1 No contractor or subcontractor may be listed on a bid proposal for a public works project unless registered with the Department of Industrial Relations pursuant to Labor Code section 1725.5 [with limited exceptions from this requirement for bid purposes only under Labor Code section 1771.1(a)].

1.4.2 No contractor or subcontractor may be awarded a
contract for public work on a public works project unless registered with the Department of Industrial Relations pursuant to Labor Code section 1725.5.

1.4.3 This project is subject to compliance monitoring
and enforcement by the Department of Industrial Relations.

1.4.4 The Labor Commissioner through the Division of
Labor Standards Enforcement (DLSE) may at any time require contractors and subcontractors to furnish electronic certified payroll records directly to DLSE. All contractors and
subcontractors must furnish electronic certified payroll records directly to the DLSE.

COU No 2425-218
3 1.4.5 The Prime Contractor is required to post job
notices at the job site as prescribed by regulations (currently, 8 CCR §16451(d).)

1.5 Use of Employees.

1.5.1. Contractor and any subcontractors shall pay
all mechanics and laborers employed by them to work upon the site of the work unconditionally and without subsequent deductions or rebate on any account the full amounts due at the time of payment at wage rates not less than those contained in the applicable prevailing wage determination, regardless of any contractual relationship which may be alleged to exist between the Contractor and subcontractors and such laborers and mechanics.

1.5.2. Contractor shall comply with the California
Labor Code Section 1775. In accordance with said Section 1775, Contractor shall forfeit as a penalty to the City, $50.00 for each calendar day or portion thereof, for each workman paid less than the stipulated prevailing rates for such work or craft in which such workman is employed for any work done under the Contract by him or her or by any subcontractor under him or her in violation of the provisions of the Labor Code and in particular, Labor Code Sections 1770 to 1780, inclusive. In addition to said penalty and pursuant to Section 1775, the difference between such stipulated prevailing wage rates and the amount paid to each workman for each calendar day or portion thereof for which each workman was paid less than the stipulated prevailing wage rate shall be paid to each workman by the Contractor.

1.5.3. Pursuant to the provision of Section 1770 of
the Labor Code of the State of California, City has ascertained the general prevailing rate of wages (which rate includes employer payments for health and welfare, vacation, pension and similar purposes) applicable to the work to be done, for straight time work. The holiday wage rate listed shall be applicable to all holidays recognized in the collective bargaining agreement of the particular craft, classification, or type of workers concerned.

Copies of the General Prevailing Wage Determination are on file in the office of the City Engineer and are available to the Contractor on request. The Contractor shall post the wage determination at the site of work in a prominent place where the workers can easily see it.

1.5.4. City will not recognize any claim for

COU No 2425-218
4 additional compensation because the Contractor has paid any rate in excess of the prevailing wage rate obtained from the City Engineer.

The possibility of wage increases is one of the elements to be considered by the Contractor in determining his or her bid and will not in any circumstances be considered as the basis for a claim against the City.

1.5.5. Travel and Subsistence Payments.

Contractor shall make travel and subsistence payments to each worker needed to execute the work in accordance with the requirements in Section 1773.8 of the Labor Code (Chapter 880, Statutes of 1968).

1.5.6. Apprentices.

Attention is directed to the provisions in Sections
1777.5 (Chapter 1411, Statutes of 1968) and 1777.6 of the California Labor Code concerning the employment of apprentices by the Contractor or any subcontractor under him. Contractor and any subcontractor under him or her shall comply with the requirements of said sections in the employment of apprentices.

Information relative to apprenticeship standards,
wage schedules and other requirements may be obtained from the Director of Industrial Relations, ex officio the Administrator of Apprenticeship, San Francisco, California, or from the Division of Apprenticeship Standards and its branch offices.

Copies of Labor Code Sections 1771 (requiring prevailing wages), 1775 (imposing penalties, including a $50 per day, per worker forfeiture, for failure to pay prevailing wages), 1776 (requiring contractor to maintain available for inspection certified payroll records), 1777.5 (requiring certain apprenticeship programs), 1813 (imposing penalties for failure to make records available for inspection) and 1815 (requiring time and ½ for overtime) are available at the Department of Industrial Relations website at http://www.dir.ca.gov/

1.6 CITY Inspector. CITY may designate an architect, engineer, other design professional or other inspector ("Inspector") to supervise and/or inspect Contractor's performance of the Work. The Inspector shall have no authority to change the Work, the compensation for performing the Work or the time for completing the

COU No 2425-218
5 Work without City's prior written approval. City shall notify the Contractor in writing, if it designates an Inspector.

1.7 Site Conditions. Contractor acknowledges that it has inspected the work site and any improvements involving the Work and satisfied itself as to the conditions which can affect the Work or its cost. Contractor has not relied on any representation by CITY or its officers or employees as to the condition of the site or the houses or any condition that might affect the cost of performing this Agreement.

1.8 New Products Required. All equipment, materials or
fixtures furnished by Contractor under this Agreement shall be new and of the most suitable grade for the intended purpose, unless otherwise specifically provided.

1.9 Compliance with Laws. The Contractor shall give all notices and comply with all applicable laws, ordinances, codes, rules and regulations. The Contractor shall secure and pay for all permits, fees, and licenses necessary for the proper execution and completion of the work.

1.10 Protection of Site and Improvements. The Contractor shall preserve and protect the site, grounds and any involved improvements and shall not alter or damage any portion thereof, except as is absolutely necessary in order to perform the Work. The Contractor shall repair or replace, as directed by CITY, any property that it damages, looses or destroys in violation of this paragraph. Contractor shall assume full responsibility for maintaining the safety of the worksite in compliance with all applicable state and federal worker safety and protection laws and shall maintain the worksite in compliance with all such laws.

1.11 Inspection of Work. The Contractor shall ensure that the Work is available for inspection by CITY or its Inspector at all reasonable times and that no work is covered up or rendered incapable of inspection without prior notice to CITY or its Inspector and a reasonable opportunity for inspection. The presence or absence of an CITY inspector or the conduct of an inspection by CITY or its Inspector shall not relieve the Contractor from any contract requirement or compliance with Exhibit A.

1.12 Title. The Contractor warrants that it conveys full and complete title, free of all liens and encumbrances, to all materials, supplies, fixtures and equipment furnished to CITY under this

COU No 2425-218
6 Agreement and agrees to fully defend and indemnify CITY, its officers and employees, and the houses and homebuyers included in the Work from and against any claim, lien, charge, debt, cost, expense or liability arising from a breach of said warranty.

1.13 Warranties. In addition to any other warranties in this contract, the Contractor warrants that the Work conforms to the contract requirements and is free of any defect in equipment, material or workmanship for a period of one year from the date of final acceptance of the Work by CITY. If CITY accepts any part of the Work before final acceptance of the entire Work, the warranty shall continue for the period of one year from the date of such partial acceptance. The Contractor shall remedy, at the Contractor's expense, any failure to conform, or any defect. [Initial if following sentence applies /_/ /_/] CITY shall retain __% of the Contract Amount to secure the Contractor's warranty and shall remit the unused portion of that amount at the end of the warranty period.

The time limit of this warranty shall not apply to any latent defects, or gross negligence or fraud on the part of the Contractor.

1.14. Extension of Time.

Should any delays occur which the City may consider unavoidable, as herein defined, the Contractor shall, pursuant to his or her application, be allowed an extension of time proportional to said delay or delays, beyond the time herein set forth, in which to complete this contract; and liquidated damages for delay shall not be charged against the Contractor by the City during an extension of time granted because of unavoidable delay or delays.

Any claim by Contractor for a time extension based on unavoidable delays shall be based on written notice delivered to the City within 15 days of the occurrence of the event giving rise to the claim.

Failure to file said written notice within the time specified shall constitute a waiver of said claim. Notice of the full extent of the claim and all supporting data must be delivered to the City within 45 days of the occurrence unless the City specifies in writing a longer period. All claims for a time extension must be approved by the City and incorporated into a written change order.

1.15. Unfavorable Weather and Other Conditions.

During unfavorable weather and other conditions, the Contractor shall pursue only such portions of the work as shall not be damaged thereby. No portions of the work whose satisfactory quality or efficiency will be affected by any unfavorable conditions shall be constructed while these conditions remain, unless, by special means

COU No 2425-218
7 or precautions approved by the City, the Contractor shall be able to overcome them.

The Contractor shall be granted a time extension of one day for each unfavorable weather day that prevents him or her from placing concrete forms or placing and finishing concrete or asphalt concrete.

Such unfavorable weather day is defined as a rain day where precipitation prevents the contractor from performing the work more than four (4) continuous hours within the authorized work period or a temperature day where the ambient temperature is below that specified for the placement of materials associated with the controlling work item for more than four (4) continuous work hours of the authorized work period.

1.16. Saturday, Sunday, Holiday and Night Work.

No work shall be done between the hours of 6 p.m. and 7 a.m., nor on Saturdays, Sundays or legal holidays except such work as is necessary for the proper care and protection of work already performed, or except in cases of absolute necessity and in any case only with the permission of the City.

It is understood, however, that night work may be established as a regular procedure by the Contractor if he or she first obtains the written permission of the City and that such permission may be revoked at any time by the City if the Contractor fails to maintain at night adequate force and equipment for reasonable prosecution and to justify inspection of the work.

1.17. Hours of Labor.

Eight (8) hours of labor shall constitute a legal day's work and the Contractor or any subcontractor shall not require or permit more than eight hours of labor in a day from any person employed by him or her in the performance of the work under this contract, unless paying compensation for all hours worked in excess of eight (8) hours per day at not less than 1 ½ times the basic rate of pay.

The Contractor shall forfeit to the City, as a penalty, the sum of twenty-five dollars ($25.00) for each workman employed in the execution of the contract by him or her or by any subcontractor, for each calendar day during which such laborer, workman, or mechanic is required or permitted to labor more than eight hours in violation of the provisions of Section 1810 to 1816, inclusive, (Article 3, Chapter 1, Part 7, Division 2) of the Labor Code of the State of California and any acts amendatory thereof.

2. CONTRACT PRICE

COU No 2425-218
8 CITY shall pay the Contractor for performance of this Agreement time and materials with a total not to exceed amount of $45,320.

3. PAYMENT OF CONTRACT PRICE

3.1 City shall pay any invoice for completed work, and approved by the City, within thirty (30) days of its receipt by City. All payments under this contract shall be made upon the presentation of certificates in writing from the City and shall show that the work covered by the payments has been done and the payments thereof are due in accordance with this contract.

4. INDEMNIFICATION AND INSURANCE.

4.1 Indemnification. The Contractor shall do all of the work and furnish all labor, materials, tools and appliances, except as otherwise herein expressly stipulated, necessary or proper for performing and completing the work herein required in the manner and within the time herein specified. The mention of any specific duty or liability imposed upon the Contractor shall not be construed as a limitation or restriction of any general liability or duty imposed upon the Contractor by this contract, said reference to any specific duty or liability being made herein merely for the purpose of explanation.

The right of general supervision by the City shall not make the Contractor an agent of the City and the liability of the Contractor for all damages to persons or to public or private property, arising from the Contractor's execution of the work, shall not be lessened because of such general supervision.

Until the completion and final acceptance by the City of all the work under and implied by this contract, the work shall be under the Contractor's responsible care and charge. The Contractor shall rebuild, repair, restore and make good all injuries, damages, reerections and repairs, occasioned or rendered necessary by causes of any nature whatsoever, excepting only acts of God and none other, to all or any portions of the work, except as otherwise stipulated.

To the fullest extent permitted by law, Contractor shall indemnify and hold harmless the City and its officers, directors, agents, and employees from and against all claims, damages, losses and expenses including but not limited to attorneys' fees, costs of suit, expert witness fees and expenses and fees and costs of any necessary private

COU No 2425-218
9 investigators arising out of or resulting from the performance of the work, provided that any such claim, damage, loss or expense (1) is attributable to bodily injury, sickness, disease or death, or to injury to or destruction of tangible property, other than the work itself, including the loss of use resulting therefrom and (2) is caused in whole or in part by any act or omission of the Contractor, any subcontractor, or anyone directly or indirectly employed by any of them, or anyone for whose acts any of them may be liable, regardless of whether or not it is caused in part by a party indemnified hereunder, or by the negligence or omission of a party indemnified herein.

In any and all claims against the City or any of its agents or employees by any employee of the Contractor, any subcontractor, anyone directly or indirectly employed by any of them, or anyone for whose acts any of them may be liable, the indemnification obligation shall not be limited in any way by any limitation on the amount or type of damages, compensation or benefits payable by or for the Contractor or any subcontractor under workers' or workmen's compensation acts, disability benefit acts, or other employee benefit acts. The obligation to indemnify shall extend to and include acts of the indemnified party which may be negligent or omissions which may cause negligence.

The City shall have the right to estimate the amount of such damage and to cause the City to pay the same and the amount so paid for such damage shall be deducted from the money due the Contractor under this contract; or the whole or so much of the money due or to become due the Contractor under this contract as may be considered necessary by the City, shall be retained by the City until such suits or claims for damages shall have been settled or otherwise disposed of and satisfactory evidence to that effect furnished to the City.

4.2 Insurance. Contractor shall procure and maintain for the duration of the contract insurance against claims for injuries to persons or damages to property which may arise from or in connection with the performance of the work hereunder by the Contractor, his agents, representatives, employees or subcontractors.

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

COU No 2425-218
10 A. Insurance Services Office Commercial General
Liability coverage (Form No. CG 20 10 10 01 and
Commercial General Liability – Completed
Operations Form No. CG 20 37 10 01).

B. Insurance Services Office form number CA 0001 (Ed.
1/87) covering Automobile Liability, code 1 (any
auto).

C. Worker’s Compensation insurance as required by the
State of California and Employer’s Liability
Insurance.

4.2.2. Minimum Limits of Insurance
Contractor shall maintain limits no less than:

A. General Liability: $2,000,000 per occurrence for
bodily injury, personal injury and property damage
including operations, products and completed
operations. 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. Insurance must be written
on an occurrence basis.

B. Automobile Liability: $2,000,000 per accident for
bodily injury and property damage. Insurance must be
written on an occurrence basis.

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

4.2.3. Deductibles and Self-insured Retentions
Any deductibles or self-insured retentions must be declared to and approved by the City. The City may require the insurer to reduce or eliminate such deductibles or self-insured retentions with respect to the City, its officers, officials, employees and volunteers; or the Contractor to provide a financial guarantee satisfactory to the City guaranteeing payment of losses and related investigations, claim administration and defense expenses; or to approve the deductible without a guarantee.

4.2.4. REQUIRED Insurance Provisions

COU No 2425-218
11 Proof of general liability and automobile liability policies are to contain, or be endorsed to contain, the following provisions:

A. The City, its officers, officials, employees, and
volunteers are to be covered as ADDITIONAL INSURED with respect to liability arising out of automobiles owned, leased, hired or borrowed by or on behalf of the contractor; and with respect to liability arising out of work or operations
performed by or on behalf of the Contractor including
materials, parts or equipment, furnished in connection with such work or operations. General liability coverage can be provided in the form of an endorsement to the Contractor’s insurance, or as a separate owner’s policy.

B. The workers’ compensation policy is to be endorsed with a waiver of subrogation. The insurance company, in its
endorsement, agrees to waive all rights of subrogation
against the City, its officers, officials, employees and volunteers for losses paid under the terms of this policy which arises from the work performed by the named insured for the City. NOTE: You cannot be added as an additional insured on a workers’ compensation policy.

C. For any claims related to this project, the Contractor’s insurance coverage shall be primary insurance with respect to the City, its officers, officials, employees, and volunteers.

Any insurance or self-insurance maintained by the City, its officers, officials, employees, or volunteers shall be in excess of the Contractor’s insurance and shall not contribute with it.

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

E. Note: (This protects the Contractor) -Coverage shall not extend to any indemnity coverage for the active negligence of the additional insured in any case where an agreement to indemnify the additional insured would be invalid under Subdivision (b) of Section 2782 of Civil Code.

COU No 2425-218
12 5. TERMINATION.

This Agreement may only be terminated by City: 1) for breach of the agreement; 2) because funds are no longer available to pay Contractor for services provided under this Agreement; or 3) City has abandoned and does not wish to complete the project for which Contractor was retained. City shall notify Contractor of any alleged breach of the agreement and of the action required to cure the breach. If Contractor fails to cure the breach within the time specified in the notice, the contract shall be terminated as of that time. If terminated for lack of funds or abandonment of the project, the contract shall terminate on the date notice of termination is given to Contractor. City shall pay the Contractor only for services performed and expenses incurred as of the effective termination date, unless terminated because the Contractor has failed to
satisfactorily cure a breach after notice in which event City shall:
a. retain any amounts earned under the Contract but not yet paid by City;
b. take possession of all material and fixtures on the job site;
c. have the right to complete the Work and recover from Contractor any increased cost to complete the Work above the amounts that would have been paid to Contractor hereunder, together with any other damages suffered by City as a result of said breach.

6. MODIFICATION OF AGREEMENT.

City may, from time to time, request changes in the Work, the time to complete the work or the compensation to be paid for the Work. Such changes must be incorporated in written amendments to this Agreement. To be effective, all such changes as referred to in this section must be agreed upon in writing by both parties to this agreement.

7. ASSIGNMENT.

The Contractor shall not assign any interest in this Agreement, and shall not transfer any interest in the same (whether by assignment or novation), without the prior written consent of City.

COU No 2425-218
13 8. APPLICATION OF LAWS.

The parties hereby agree that all applicable Federal, State and local rules, regulations and guidelines not written into this Agreement shall hereby prevail during the period of this Agreement.

9. INDEPENDENT CONTRACTOR.

It is the express intention of the parties hereto that Contractor is an independent contractor and not an employee, joint venturer, or partner of City for any purpose whatsoever. City shall have no right to, and shall not control the manner or prescribe the method of accomplishing those services contracted to and performed by Contractor under this Agreement, and the general public and all governmental agencies regulating such activity shall be so informed.

Those provisions of this Agreement that reserve ultimate authority in City have been inserted solely to achieve compliance with federal and state laws, rules, regulations, and interpretations thereof. No such provisions and no other provisions of this Agreement shall be interpreted or construed as creating or establishing the relationship of employer and employee between Contractor and City.

Contractor shall pay all estimated and actual federal and state income and self-employment taxes that are due the state and federal government and shall furnish and pay worker's compensation insurance, unemployment insurance and any other benefits required by law for himself and his employees, if any. Contractor agrees to indemnify and hold City and its officers, agents and employees harmless from and against any claims or demands by federal, state or local government agencies for any such taxes or benefits due but not paid by Contractor, including the legal costs associated with defending against any audit, claim, demand or law suit.

Contractor warrants and represents that it is a properly licensed for the work performed under this Agreement with a substantial investment in its business and that it maintains its own offices and staff which it will use in performing under this Agreement.

10. GOVERNING LAW.

This Agreement shall be governed by and construed in accordance with the laws of the State of California and any legal action

COU No 2425-218
14 concerning the agreement must be filed and litigated in the proper court in Mendocino County, each party consenting to jurisdiction and venue of California state courts in Mendocino County.

11. SEVERABILITY.

If any provision of the Agreement is held by a court of competent jurisdiction to be invalid, void, or unenforceable, the remaining provisions shall nevertheless continue in full force and effect without being impaired or invalidated in any way.

12. INTEGRATION.

This Agreement, including the exhibits attached hereto, contains the entire agreement among the parties and supersedes all prior and contemporaneous oral and written agreements,
understandings, and representations among the parties. No amendments to this Agreement shall be binding unless executed in writing by all of the parties.

13. WAIVER.

No waiver of any of the provisions of this Agreement shall be deemed, or shall constitute a waiver of any other provision, nor shall any waiver constitute a continuing waiver. No waiver shall be binding unless executed in writing by the party making the waiver.

14. NOTICES.

Whenever notice, payment or other communication is required or permitted under this Agreement, it shall be deemed to have been given when personally delivered, emailed, or deposited in the United States mail with proper first-class postage affixed thereto and addressed as follows:

CONTRACTOR CITY
Donhaoo, Inc. City of Ukiah
6901 Highway 20 300 Seminary Ave.

Ukiah, CA 95482 Ukiah, CA. 95482

COU No 2425-218
15 Either party may change the address to which notices must be sent by providing notice of that change as provided in this paragraph.

15. PARAGRAPH HEADINGS.

The paragraph headings contained herein are for convenience and reference only and are not intended to define or limit the scope of this agreement.

16. EXECUTION OF AGREEMENT.

This Agreement may be executed in duplicate originals, each bearing the original signature of the parties. Alternatively, this Agreement may be executed and delivered by facsimile or other electronic transmission, and in more than one counterpart, each of which shall be deemed an original, and all of which together shall constitute one and the same instrument. When executed using either alternative, the executed agreement shall be deemed an original admissible as evidence in any administrative or judicial proceeding to prove the terms and content of this Agreement.

WHEREFORE, the parties have entered this Agreement on the date first written above.

CONTRACTOR CITY OF UKIAH
By:___________________________ By:___________________________ Sage Sangiacomo
City Manager
California Contractor's License Number __________ 860066 [Number or N/A]

Customer Info: Contractor Submitting Bid:

City Of Ukiah Donahoo Inc
6901 Hwy 20
Ukiah
Job Location: (707)953-4484
Vichy Springs Landfill
Date: 9/15/2025
Work to be performed:

Donahoo Inc. will provide all labor and material necessary to perform the following work.

Price includes mobilization, and repair of one slip out above the lower pond, and a wash out above the middle bench. All fill will come from the borrow pit area onsite. All fill will be compacted with a wheel compactor on the excavator. Will also include the replacement of 60 inch culvert.

Total $43,820.00
Bond $1,500.00
Grand Total $45,320.00
Conditions
All spoils will remain onsite.

All fill is to come from onsite at the borrow area.

Exclusions
Permits are not included in this bid item.

Imported fill is not included in this bid.

By signing below I accept the price and the conditions of this bid.

Signature: Date:

Exhibit A

Customer Info: Contractor Submitting Bid:

City Of Ukiah Donahoo Inc
6901 Hwy 20
Ukiah
Job Location: (707)953-4484
Vichy Springs Landfill
Date: 10/7/2025
Work to be performed:

Donahoo Inc. will provide all labor and material necessary to perform the following work.

Change Order Request
Included a price to repair the slip out going to the borrow area and one small slip out going out on the upper bench. Will include hydro seeding the area as well.

Total $18,250.00
Conditions
All spoils will remain onsite.

All fill is to come from onsite at the borrow area.

Exclusions
Permits are not included in this bid item.

Imported fill is not included in this bid.

By signing below I accept the price and the conditions of this bid.

Signature: Date:

ATTACHMENT 2

Agenda Item No: 8.k.

MEETING DATE/TIME: 10/15/2025

ITEM NO: 2025-1185

AGENDA SUMMARY REPORT
SUBJECT: Approval of Budget Amendment in the Amount of $100,000 for Contracted Maintenance, Consulting, and other Professional Services at the Ukiah Landfill.

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

None
Summary: Council will consider approving a budget amendment in the amount of $100,000 for contracted maintenance, consulting, and other professional services at the Ukiah Landfill.

Background: As the closure of the Ukiah Landfill approaches, recent maintenance activities have fully utilized the current-year contracted services budget. Additional work associated with the closure process—including ongoing maintenance, monitoring, testing, reporting, consulting, and design—will require supplemental budget authorization in Fiscal Year 2025–2026.

Discussion: A budget amendment of $100,000 is requested to cover anticipated routine expenses without returning to Council for approval unless costs/contracts exceed approved purchasing threshold limits. Staff anticipates additional costs for maintenance, testing and reporting as required by the California State Waterboard to continue the landfill closure effort.

These additional funds will be drawn from ongoing revenue generated by the Ukiah Transfer Station's surcharge and from rental fees collected to support the ongoing maintenance and eventual closure of the Ukiah landfill.

Recommended Action: Approve budget amendment in the amount of $100,000 for contracted maintenance, consulting, and other professional services at the Ukiah Landfill.

BUDGET AMENDMENT REQUIRED: YES
CURRENT BUDGET AMOUNT: 70024500.52100: $0.

PROPOSED BUDGET AMOUNT: 70024500.52100: $100,000
FINANCING SOURCE: Landfill Abatement Revenue Funds
REVENUE:No GRANT: No
PREVIOUS CONTRACT/PURCHASE ORDER NO.:

COORDINATED WITH: Jason Benson, Senior Engineer, Dave Kirch, Fleet and Facilities Supervisor and Tim Eriksen, Director of Public Works/City Engineer
STRATEGIC PLAN (SP): N/A
CLIMATE INITIATIVES (CI): N/A
GENERAL PLAN ELEMENTS (GP): N/A

Agenda Item No: 8.l.

MEETING DATE/TIME: 10/15/2025

ITEM NO: 2025-1184

AGENDA SUMMARY REPORT
SUBJECT: Notification of Emergency Contract with Donahoo, Inc in the Amount of $45,141 for Slide Mitigation Work at the Pressure Zone 1 Water Storage Tank.

DEPARTMENT: Water Resources PREPARED BY: Seth Strader, Administrative Analyst PRESENTER: Sean White, Water Resources Director
ATTACHMENTS:

1. Donahoo Inc - Water Tank Cleanup 2526-118 - Contract Summary: Council will Receive Notification of Emergency Contract with Donahoo, Inc in the Amount of $45,141 for Slide Mitigation Work at the Pressure Zone 1 Water Storage Tank.

Background: On September 25, 2025, the City entered into a contract with Donahoo, Inc. to mitigate a slide that occurred at the Pressure Zone 1 Storage Tank, located in the western mountains of Ukiah above the Ukiah Golf Course. The contract amount was $45,141. The scope of work includes debris removal, off-haul, and winterization measures to prevent further movement. See Attachment 1.

Discussion: The contract scope also includes the removal of an oak tree located at the top of the slide zone that currently presents a safety risk, with associated costs for tree removal and off-haul of the wood. Additional work consists of debris removal at the slide zone, including access to the top of the slope and removal of loose material. Spoils will be hauled to an offsite location by the contractor. To stabilize the area for winter, plastic sheeting and sandbags will be placed over the slide area. Additional evaluation for a final and long-term mitigation solution is ongoing.

Recommended Action: Receive Notification of Emergency Contract with Donahoo, Inc in the Amount of $45,141 for Slide Mitigation Work at the Pressure Zone 1 Water Storage Tank.

BUDGET AMENDMENT REQUIRED: No - An internal budget transfer will be done.

CURRENT BUDGET AMOUNT: 82027111.52100.18477: $0
PROPOSED BUDGET AMOUNT: 82027111.52100.18477: $45,141
FINANCING SOURCE: Water
REVENUE: No GRANT: No
PREVIOUS CONTRACT/PURCHASE ORDER NO.: 2526118
COORDINATED WITH: Myles Fisette, Purchasing Manager; Jason Benson, Senior Engineer; Dave Kirch, Fleet and Facilities Supervisor; and Sean White, Water Resources Director STRATEGIC PLAN (SP): N/A
CLIMATE INITIATIVES (CI): N/A
GENERAL PLAN ELEMENTS (GP): N/A

COU No 2526-118
1 SHORT FORM CONSTRUCTION CONTRACT
This Agreement is made and entered on September 25th, 2025, in Ukiah, California, by and between Donahoo, Inc, a
corporation("Contractor") and the City of Ukiah ("City"), a general law municipal corporation.

RECITALS:

1. The plans and specifications for this work ("the Work") are contained in Exhibit A, which is attached hereto and incorporated herein by this reference.

2. Contractor is properly licensed and qualified to perform the work.

3. Whenever this Agreement calls for City approval or
notification, the approval or notification must be signed by the City Manager or his or her designee.

AGREEMENT:

Wherefore, in consideration of the foregoing facts and the terms and conditions as further stated herein, the parties hereby agree as follows.

1. PERFORMANCE OF THE WORK
Contractor will perform the Work as further provided herein.

1.1 Time of Performance. Contractor shall commence the Work when receiving a formal Notice to Proceed, and shall complete the Work in a reasonable amount of time as coordinated with the City.

1.1.1.  [check if applicable] It is agreed by the parties to the contract that time is of the essence and that, in case all the work is not completed before or upon the expiration of the time limit as set forth, damage, other than those cost items identified in section 1.1.2, will be sustained by the City and that it is and will be impracticable to determine the actual amount of damage by reason of such delay; and it is therefore agreed that, subject to Sections 1.13-1.14, below, the
Contractor will pay to the City the sum of five hundred dollars ($500.00) per day for each and every calendar day's delay beyond the time prescribed.

ATTACHMENT 1

COU No 2526-118
2 1.1.2  [check if applicable] In case the work called for under this contract is not completed within the time limit stipulated herein, the City shall have the right as provided hereinabove, to extend the time of completion thereof. If the time limit be so extended, the City shall have the right to charge to the Contractor and to deduct from the final payment for the work the actual cost to the City of engineering, inspection, superintendence and other overhead expenses which are directly chargeable to the contract and which accrue during the period of such extension, except that the cost of final unavoidable delays shall not be included in such charges.

1.2 Construction of Contract Documents. Contractor will perform the Work in compliance with the plans and specifications set forth in the attached Exhibit A. If there is any inconsistency or conflict between the plans and the specifications, the specifications will prevail. If there is any inconsistency between the plans and the specifications and this agreement, the terms of this Agreement shall prevail, unless expressly stated otherwise in a particular specification.

1.3 Contractor furnished items. Contractor will furnish all necessary labor, materials, tools, equipment, and transportation necessary to perform the Work.

1.4 SB 854 requirements

1.4.1 No contractor or subcontractor may be listed on a bid proposal for a public works project unless registered with the Department of Industrial Relations pursuant to Labor Code section 1725.5 [with limited exceptions from this requirement for bid purposes only under Labor Code section 1771.1(a)].

1.4.2 No contractor or subcontractor may be awarded a
contract for public work on a public works project unless registered with the Department of Industrial Relations pursuant to Labor Code section 1725.5.

1.4.3 This project is subject to compliance monitoring
and enforcement by the Department of Industrial Relations.

1.4.4 The Labor Commissioner through the Division of
Labor Standards Enforcement (DLSE) may at any time require contractors and subcontractors to furnish electronic certified payroll records directly to DLSE. All contractors and
subcontractors must furnish electronic certified payroll records directly to the DLSE.

COU No 2526-118
3 1.4.5 The Prime Contractor is required to post job
notices at the job site as prescribed by regulations (currently, 8 CCR §16451(d).)

1.5 Use of Employees.

1.5.1. Contractor and any subcontractors shall pay
all mechanics and laborers employed by them to work upon the site of the work unconditionally and without subsequent deductions or rebate on any account the full amounts due at the time of payment at wage rates not less than those contained in the applicable prevailing wage determination, regardless of any contractual relationship which may be alleged to exist between the Contractor and subcontractors and such laborers and mechanics.

1.5.2. Contractor shall comply with the California
Labor Code Section 1775. In accordance with said Section 1775, Contractor shall forfeit as a penalty to the City, $50.00 for each calendar day or portion thereof, for each workman paid less than the stipulated prevailing rates for such work or craft in which such workman is employed for any work done under the Contract by him or her or by any subcontractor under him or her in violation of the provisions of the Labor Code and in particular, Labor Code Sections 1770 to 1780, inclusive. In addition to said penalty and pursuant to Section 1775, the difference between such stipulated prevailing wage rates and the amount paid to each workman for each calendar day or portion thereof for which each workman was paid less than the stipulated prevailing wage rate shall be paid to each workman by the Contractor.

1.5.3. Pursuant to the provision of Section 1770 of
the Labor Code of the State of California, City has ascertained the general prevailing rate of wages (which rate includes employer payments for health and welfare, vacation, pension and similar purposes) applicable to the work to be done, for straight time work. The holiday wage rate listed shall be applicable to all holidays recognized in the collective bargaining agreement of the particular craft, classification, or type of workers concerned.

Copies of the General Prevailing Wage Determination are on file in the office of the City Engineer and are available to the Contractor on request. The Contractor shall post the wage determination at the site of work in a prominent place where the workers can easily see it.

1.5.4. City will not recognize any claim for

COU No 2526-118
4 additional compensation because the Contractor has paid any rate in excess of the prevailing wage rate obtained from the City Engineer.

The possibility of wage increases is one of the elements to be considered by the Contractor in determining his or her bid and will not in any circumstances be considered as the basis for a claim against the City.

1.5.5. Travel and Subsistence Payments.

Contractor shall make travel and subsistence payments to each worker needed to execute the work in accordance with the requirements in Section 1773.8 of the Labor Code (Chapter 880, Statutes of 1968).

1.5.6. Apprentices.

Attention is directed to the provisions in Sections
1777.5 (Chapter 1411, Statutes of 1968) and 1777.6 of the California Labor Code concerning the employment of apprentices by the Contractor or any subcontractor under him. Contractor and any subcontractor under him or her shall comply with the requirements of said sections in the employment of apprentices.

Information relative to apprenticeship standards,
wage schedules and other requirements may be obtained from the Director of Industrial Relations, ex officio the Administrator of Apprenticeship, San Francisco, California, or from the Division of Apprenticeship Standards and its branch offices.

Copies of Labor Code Sections 1771 (requiring prevailing wages), 1775 (imposing penalties, including a $50 per day, per worker forfeiture, for failure to pay prevailing wages), 1776 (requiring contractor to maintain available for inspection certified payroll records), 1777.5 (requiring certain apprenticeship programs), 1813 (imposing penalties for failure to make records available for inspection) and 1815 (requiring time and ½ for overtime) are available at the Department of Industrial Relations website at http://www.dir.ca.gov/

1.6 CITY Inspector. CITY may designate an architect, engineer, other design professional or other inspector ("Inspector") to supervise and/or inspect Contractor's performance of the Work. The Inspector shall have no authority to change the Work, the compensation for performing the Work or the time for completing the

COU No 2526-118
5 Work without City's prior written approval. City shall notify the Contractor in writing, if it designates an Inspector.

1.7 Site Conditions. Contractor acknowledges that it has inspected the work site and any improvements involving the Work and satisfied itself as to the conditions which can affect the Work or its cost. Contractor has not relied on any representation by CITY or its officers or employees as to the condition of the site or the houses or any condition that might affect the cost of performing this Agreement.

1.8 New Products Required. All equipment, materials or
fixtures furnished by Contractor under this Agreement shall be new and of the most suitable grade for the intended purpose, unless otherwise specifically provided.

1.9 Compliance with Laws. The Contractor shall give all notices and comply with all applicable laws, ordinances, codes, rules and regulations. The Contractor shall secure and pay for all permits, fees, and licenses necessary for the proper execution and completion of the work.

1.10 Protection of Site and Improvements. The Contractor shall preserve and protect the site, grounds and any involved improvements and shall not alter or damage any portion thereof, except as is absolutely necessary in order to perform the Work. The Contractor shall repair or replace, as directed by CITY, any property that it damages, looses or destroys in violation of this paragraph. Contractor shall assume full responsibility for maintaining the safety of the worksite in compliance with all applicable state and federal worker safety and protection laws and shall maintain the worksite in compliance with all such laws.

1.11 Inspection of Work. The Contractor shall ensure that the Work is available for inspection by CITY or its Inspector at all reasonable times and that no work is covered up or rendered incapable of inspection without prior notice to CITY or its Inspector and a reasonable opportunity for inspection. The presence or absence of an CITY inspector or the conduct of an inspection by CITY or its Inspector shall not relieve the Contractor from any contract requirement or compliance with Exhibit A.

1.12 Title. The Contractor warrants that it conveys full and complete title, free of all liens and encumbrances, to all materials, supplies, fixtures and equipment furnished to CITY under this

COU No 2526-118
6 Agreement and agrees to fully defend and indemnify CITY, its officers and employees, and the houses and homebuyers included in the Work from and against any claim, lien, charge, debt, cost, expense or liability arising from a breach of said warranty.

1.13 Warranties. In addition to any other warranties in this contract, the Contractor warrants that the Work conforms to the contract requirements and is free of any defect in equipment, material or workmanship for a period of one year from the date of final acceptance of the Work by CITY. If CITY accepts any part of the Work before final acceptance of the entire Work, the warranty shall continue for the period of one year from the date of such partial acceptance. The Contractor shall remedy, at the Contractor's expense, any failure to conform, or any defect. [Initial if following sentence applies /_/ /_/] CITY shall retain __% of the Contract Amount to secure the Contractor's warranty and shall remit the unused portion of that amount at the end of the warranty period.

The time limit of this warranty shall not apply to any latent defects, or gross negligence or fraud on the part of the Contractor.

1.14. Extension of Time.

Should any delays occur which the City may consider unavoidable, as herein defined, the Contractor shall, pursuant to his or her application, be allowed an extension of time proportional to said delay or delays, beyond the time herein set forth, in which to complete this contract; and liquidated damages for delay shall not be charged against the Contractor by the City during an extension of time granted because of unavoidable delay or delays.

Any claim by Contractor for a time extension based on unavoidable delays shall be based on written notice delivered to the City within 15 days of the occurrence of the event giving rise to the claim.

Failure to file said written notice within the time specified shall constitute a waiver of said claim. Notice of the full extent of the claim and all supporting data must be delivered to the City within 45 days of the occurrence unless the City specifies in writing a longer period. All claims for a time extension must be approved by the City and incorporated into a written change order.

1.15. Unfavorable Weather and Other Conditions.

During unfavorable weather and other conditions, the Contractor shall pursue only such portions of the work as shall not be damaged thereby. No portions of the work whose satisfactory quality or efficiency will be affected by any unfavorable conditions shall be constructed while these conditions remain, unless, by special means

COU No 2526-118
7 or precautions approved by the City, the Contractor shall be able to overcome them.

The Contractor shall be granted a time extension of one day for each unfavorable weather day that prevents him or her from placing concrete forms or placing and finishing concrete or asphalt concrete.

Such unfavorable weather day is defined as a rain day where precipitation prevents the contractor from performing the work more than four (4) continuous hours within the authorized work period or a temperature day where the ambient temperature is below that specified for the placement of materials associated with the controlling work item for more than four (4) continuous work hours of the authorized work period.

1.16. Saturday, Sunday, Holiday and Night Work.

No work shall be done between the hours of 6 p.m. and 7 a.m., nor on Saturdays, Sundays or legal holidays except such work as is necessary for the proper care and protection of work already performed, or except in cases of absolute necessity and in any case only with the permission of the City.

It is understood, however, that night work may be established as a regular procedure by the Contractor if he or she first obtains the written permission of the City and that such permission may be revoked at any time by the City if the Contractor fails to maintain at night adequate force and equipment for reasonable prosecution and to justify inspection of the work.

1.17. Hours of Labor.

Eight (8) hours of labor shall constitute a legal day's work and the Contractor or any subcontractor shall not require or permit more than eight hours of labor in a day from any person employed by him or her in the performance of the work under this contract, unless paying compensation for all hours worked in excess of eight (8) hours per day at not less than 1 ½ times the basic rate of pay.

The Contractor shall forfeit to the City, as a penalty, the sum of twenty-five dollars ($25.00) for each workman employed in the execution of the contract by him or her or by any subcontractor, for each calendar day during which such laborer, workman, or mechanic is required or permitted to labor more than eight hours in violation of the provisions of Section 1810 to 1816, inclusive, (Article 3, Chapter 1, Part 7, Division 2) of the Labor Code of the State of California and any acts amendatory thereof.

2. CONTRACT PRICE

COU No 2526-118
8 CITY shall pay the Contractor for performance of this Agreement time and materials with a total not to exceed amount of $45,141.

3. PAYMENT OF CONTRACT PRICE

3.1 City shall pay any invoice for completed work, and approved by the City, within thirty (30) days of its receipt by City. All payments under this contract shall be made upon the presentation of certificates in writing from the City and shall show that the work covered by the payments has been done and the payments thereof are due in accordance with this contract.

4. INDEMNIFICATION AND INSURANCE.

4.1 Indemnification. The Contractor shall do all of the work and furnish all labor, materials, tools and appliances, except as otherwise herein expressly stipulated, necessary or proper for performing and completing the work herein required in the manner and within the time herein specified. The mention of any specific duty or liability imposed upon the Contractor shall not be construed as a limitation or restriction of any general liability or duty imposed upon the Contractor by this contract, said reference to any specific duty or liability being made herein merely for the purpose of explanation.

The right of general supervision by the City shall not make the Contractor an agent of the City and the liability of the Contractor for all damages to persons or to public or private property, arising from the Contractor's execution of the work, shall not be lessened because of such general supervision.

Until the completion and final acceptance by the City of all the work under and implied by this contract, the work shall be under the Contractor's responsible care and charge. The Contractor shall rebuild, repair, restore and make good all injuries, damages, reerections and repairs, occasioned or rendered necessary by causes of any nature whatsoever, excepting only acts of God and none other, to all or any portions of the work, except as otherwise stipulated.

To the fullest extent permitted by law, Contractor shall indemnify and hold harmless the City and its officers, directors, agents, and employees from and against all claims, damages, losses and expenses including but not limited to attorneys' fees, costs of suit, expert witness fees and expenses and fees and costs of any necessary private

COU No 2526-118
9 investigators arising out of or resulting from the performance of the work, provided that any such claim, damage, loss or expense (1) is attributable to bodily injury, sickness, disease or death, or to injury to or destruction of tangible property, other than the work itself, including the loss of use resulting therefrom and (2) is caused in whole or in part by any act or omission of the Contractor, any subcontractor, or anyone directly or indirectly employed by any of them, or anyone for whose acts any of them may be liable, regardless of whether or not it is caused in part by a party indemnified hereunder, or by the negligence or omission of a party indemnified herein.

In any and all claims against the City or any of its agents or employees by any employee of the Contractor, any subcontractor, anyone directly or indirectly employed by any of them, or anyone for whose acts any of them may be liable, the indemnification obligation shall not be limited in any way by any limitation on the amount or type of damages, compensation or benefits payable by or for the Contractor or any subcontractor under workers' or workmen's compensation acts, disability benefit acts, or other employee benefit acts. The obligation to indemnify shall extend to and include acts of the indemnified party which may be negligent or omissions which may cause negligence.

The City shall have the right to estimate the amount of such damage and to cause the City to pay the same and the amount so paid for such damage shall be deducted from the money due the Contractor under this contract; or the whole or so much of the money due or to become due the Contractor under this contract as may be considered necessary by the City, shall be retained by the City until such suits or claims for damages shall have been settled or otherwise disposed of and satisfactory evidence to that effect furnished to the City.

4.2 Insurance. Contractor shall procure and maintain for the duration of the contract insurance against claims for injuries to persons or damages to property which may arise from or in connection with the performance of the work hereunder by the Contractor, his agents, representatives, employees or subcontractors.

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

COU No 2526-118
10 A. Insurance Services Office Commercial General
Liability coverage (Form No. CG 20 10 10 01 and
Commercial General Liability – Completed
Operations Form No. CG 20 37 10 01).

B. Insurance Services Office form number CA 0001 (Ed.
1/87) covering Automobile Liability, code 1 (any
auto).

C. Worker’s Compensation insurance as required by the
State of California and Employer’s Liability
Insurance.

4.2.2. Minimum Limits of Insurance
Contractor shall maintain limits no less than:

A. General Liability: $2,000,000 per occurrence for
bodily injury, personal injury and property damage
including operations, products and completed
operations. 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. Insurance must be written
on an occurrence basis.

B. Automobile Liability: $2,000,000 per accident for
bodily injury and property damage. Insurance must be
written on an occurrence basis.

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

4.2.3. Deductibles and Self-insured Retentions
Any deductibles or self-insured retentions must be declared to and approved by the City. The City may require the insurer to reduce or eliminate such deductibles or self-insured retentions with respect to the City, its officers, officials, employees and volunteers; or the Contractor to provide a financial guarantee satisfactory to the City guaranteeing payment of losses and related investigations, claim administration and defense expenses; or to approve the deductible without a guarantee.

4.2.4. REQUIRED Insurance Provisions

COU No 2526-118
11 Proof of general liability and automobile liability policies are to contain, or be endorsed to contain, the following provisions:

A. The City, its officers, officials, employees, and
volunteers are to be covered as ADDITIONAL INSURED with respect to liability arising out of automobiles owned, leased, hired or borrowed by or on behalf of the contractor; and with respect to liability arising out of work or operations
performed by or on behalf of the Contractor including
materials, parts or equipment, furnished in connection with such work or operations. General liability coverage can be provided in the form of an endorsement to the Contractor’s insurance, or as a separate owner’s policy.

B. The workers’ compensation policy is to be endorsed with a waiver of subrogation. The insurance company, in its
endorsement, agrees to waive all rights of subrogation
against the City, its officers, officials, employees and volunteers for losses paid under the terms of this policy which arises from the work performed by the named insured for the City. NOTE: You cannot be added as an additional insured on a workers’ compensation policy.

C. For any claims related to this project, the Contractor’s insurance coverage shall be primary insurance with respect to the City, its officers, officials, employees, and volunteers.

Any insurance or self-insurance maintained by the City, its officers, officials, employees, or volunteers shall be in excess of the Contractor’s insurance and shall not contribute with it.

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

E. Note: (This protects the Contractor) -Coverage shall not extend to any indemnity coverage for the active negligence of the additional insured in any case where an agreement to indemnify the additional insured would be invalid under Subdivision (b) of Section 2782 of Civil Code.

COU No 2526-118
12 5. TERMINATION.

This Agreement may only be terminated by City: 1) for breach of the agreement; 2) because funds are no longer available to pay Contractor for services provided under this Agreement; or 3) City has abandoned and does not wish to complete the project for which Contractor was retained. City shall notify Contractor of any alleged breach of the agreement and of the action required to cure the breach. If Contractor fails to cure the breach within the time specified in the notice, the contract shall be terminated as of that time. If terminated for lack of funds or abandonment of the project, the contract shall terminate on the date notice of termination is given to Contractor. City shall pay the Contractor only for services performed and expenses incurred as of the effective termination date, unless terminated because the Contractor has failed to
satisfactorily cure a breach after notice in which event City shall:
a. retain any amounts earned under the Contract but not yet paid by City;
b. take possession of all material and fixtures on the job site;
c. have the right to complete the Work and recover from Contractor any increased cost to complete the Work above the amounts that would have been paid to Contractor hereunder, together with any other damages suffered by City as a result of said breach.

6. MODIFICATION OF AGREEMENT.

City may, from time to time, request changes in the Work, the time to complete the work or the compensation to be paid for the Work. Such changes must be incorporated in written amendments to this Agreement. To be effective, all such changes as referred to in this section must be agreed upon in writing by both parties to this agreement.

7. ASSIGNMENT.

The Contractor shall not assign any interest in this Agreement, and shall not transfer any interest in the same (whether by assignment or novation), without the prior written consent of City.

COU No 2526-118
13 8. APPLICATION OF LAWS.

The parties hereby agree that all applicable Federal, State and local rules, regulations and guidelines not written into this Agreement shall hereby prevail during the period of this Agreement.

9. INDEPENDENT CONTRACTOR.

It is the express intention of the parties hereto that Contractor is an independent contractor and not an employee, joint venturer, or partner of City for any purpose whatsoever. City shall have no right to, and shall not control the manner or prescribe the method of accomplishing those services contracted to and performed by Contractor under this Agreement, and the general public and all governmental agencies regulating such activity shall be so informed.

Those provisions of this Agreement that reserve ultimate authority in City have been inserted solely to achieve compliance with federal and state laws, rules, regulations, and interpretations thereof. No such provisions and no other provisions of this Agreement shall be interpreted or construed as creating or establishing the relationship of employer and employee between Contractor and City.

Contractor shall pay all estimated and actual federal and state income and self-employment taxes that are due the state and federal government and shall furnish and pay worker's compensation insurance, unemployment insurance and any other benefits required by law for himself and his employees, if any. Contractor agrees to indemnify and hold City and its officers, agents and employees harmless from and against any claims or demands by federal, state or local government agencies for any such taxes or benefits due but not paid by Contractor, including the legal costs associated with defending against any audit, claim, demand or law suit.

Contractor warrants and represents that it is a properly licensed for the work performed under this Agreement with a substantial investment in its business and that it maintains its own offices and staff which it will use in performing under this Agreement.

10. GOVERNING LAW.

This Agreement shall be governed by and construed in accordance with the laws of the State of California and any legal action

COU No 2526-118
14 concerning the agreement must be filed and litigated in the proper court in Mendocino County, each party consenting to jurisdiction and venue of California state courts in Mendocino County.

11. SEVERABILITY.

If any provision of the Agreement is held by a court of competent jurisdiction to be invalid, void, or unenforceable, the remaining provisions shall nevertheless continue in full force and effect without being impaired or invalidated in any way.

12. INTEGRATION.

This Agreement, including the exhibits attached hereto, contains the entire agreement among the parties and supersedes all prior and contemporaneous oral and written agreements,
understandings, and representations among the parties. No amendments to this Agreement shall be binding unless executed in writing by all of the parties.

13. WAIVER.

No waiver of any of the provisions of this Agreement shall be deemed, or shall constitute a waiver of any other provision, nor shall any waiver constitute a continuing waiver. No waiver shall be binding unless executed in writing by the party making the waiver.

14. NOTICES.

Whenever notice, payment or other communication is required or permitted under this Agreement, it shall be deemed to have been given when personally delivered, emailed, or deposited in the United States mail with proper first-class postage affixed thereto and addressed as follows:

CONTRACTOR CITY
Donhaoo, Inc. City of Ukiah
6901 Highway 20 300 Seminary Ave.

Ukiah, CA 95482 Ukiah, CA. 95482

COU No 2526-118
15 Either party may change the address to which notices must be sent by providing notice of that change as provided in this paragraph.

15. PARAGRAPH HEADINGS.

The paragraph headings contained herein are for convenience and reference only and are not intended to define or limit the scope of this agreement.

16. EXECUTION OF AGREEMENT.

This Agreement may be executed in duplicate originals, each bearing the original signature of the parties. Alternatively, this Agreement may be executed and delivered by facsimile or other electronic transmission, and in more than one counterpart, each of which shall be deemed an original, and all of which together shall constitute one and the same instrument. When executed using either alternative, the executed agreement shall be deemed an original admissible as evidence in any administrative or judicial proceeding to prove the terms and content of this Agreement.

WHEREFORE, the parties have entered this Agreement on the date first written above.

CONTRACTOR CITY OF UKIAH
By:___________________________ By:___________________________ Sage Sangiacomo
City Manager
California Contractor's License Number __________ [Number or N/A]

Customer Info: Contractor Submitting Bid:

City Of Ukiah Donahoo Inc
6901 Hwy 20
Ukiah CA 95482
Lic. 860066
Job Location: (707)953-4484
Water Tanks Zone 1
Ukiah Golf Course
Date:
9/25/2025
Work to be performed:

Donahoo Inc will provide all labor and material necessary to perform the following work.

Remove Oak Tree
This includes a cost to remove the oak tree at the top of the slide zone and off haul the wood.

Total $2,962.00
Clean Up Slide
Includes a cost to get on top of the slide zone and remove more of the loose debris. All spoils will hauled to a dump site on Ford St.

Includes placing plastic and sand bags over the area for the winter.

Total $42,179.00
Grand Total $45,141.00
Payment Terms:

All payments will be made within 21 days of the invoice being sent to the customer.

After 21 days an additional 1.5% of the amount invoiced will be added to the total amount owed and every month after until amount is paid in full.

By signing below I accept the price and the conditions of this bid.

Signature: Date:

Exhibit A

Agenda Item No: 12.a.

MEETING DATE/TIME: 10/15/2025

ITEM NO: 2025-1146

AGENDA SUMMARY REPORT
SUBJECT: Conduct Public Hearing to Receive Public Comment; and Consideration of Adoption of Resolution Adopting City of Ukiah Community Development Block Grant (CDBG) First Time Homebuyer Program Guidelines.

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

1. CDBG_Homebuyer_Prog_Guidelines2025_Draft

2. Proposed Resolution
Summary: Council is requested to conduct a public hearing to receive public comment and consider adopting a resolution adopting the City of Ukiah Community Development Block Grant (CDBG) Homebuyer Program Guidelines. The CDBG Homebuyer Program is funded by the State CDBG Program.

Background: On October 2, 2024, Council adopted Resolution 2024-42 approving an application for a FirstTime Homebuyer Program (FTHB) to be submitted to the State Community Development Block Grant (CDBG) Program in response to the 2024 State CDBG Notice of Funding Availability (NOFA). The application was selected for award by the state, and the program was awarded $1.5 million through standard agreement 24- CDBG-10016 on August 28, 2025. Per the 2024 State CDBG NOFA, the City is required to draft and adopt Homebuyer Program Guidelines as a component of the FTHB program funding.

Discussion: Staff has drafted City of Ukiah CDBG Homebuyer Program Guidelines (Attachment 1) using templates provided by the State of California Department of Housing and Community Development (HCD).

Financial assistance is proposed to be provided in the form of one (1) percent simple interest rate amortized and deferred payment loans, with 45-year terms to qualified low- and moderate-income home buyers that have not owned a home in the past three (3 years).

To be eligible for the Homebuyer Program, a household must have income below 80 percent of the U.S.

Department of Housing and Urban Development (HUD) area median family income (HAMFI), adjusted by household size.

Staff recommends Council conduct a public hearing to receive public comment and adopt the Resolution in Attachment 2 adopting the City of Ukiah CDBG Homebuyer Program Guidelines. If the Resolution is adopted, the guidelines in Attachment 1 will become Exhibit A to the Resolution in Attachment 2.

Recommended Action: Conduct a public hearing to receive public comment and adopt Resolution adopting the City of Ukiah Community Development Block Grant (CDBG) Homebuyer Program Guidelines.

BUDGET AMENDMENT REQUIRED: No
CURRENT BUDGET AMOUNT: N/A
PROPOSED BUDGET AMOUNT: N/A
FINANCING SOURCE: State CDBG grant

REVENUE: No GRANT: Yes
PREVIOUS CONTRACT/PURCHASE ORDER NO.: N/A
COORDINATED WITH: Craig Schlatter, AICP, Director of Community Development STRATEGIC PLAN (SP):SP 1A - Build neighborhoods that provide access for all to a compatible balance of housing, employment, commercial, medical, education, and recreational resources.

CLIMATE INITIATIVES (CI): N/A
GENERAL PLAN ELEMENTS (GP): GP-A8 - Housing Element (2019-2027); Goal H-2; Policy 2-6; Implementation Program 2i "FTHB Assistance"

City of Ukiah
Homebuyer
Program Guidelines
For:

Community Development Block
Grant (CDBG) Program
and
Serving the City of Ukiah
Approved by City Council: _______, _____
ATTACHMENT 1

EXHIBIT A

2 HOMEBUYER PROGRAM GUIDELINES
Table of Contents

1.0. GENERAL

1.1. PROGRAM OUTREACH AND MARKETING

1.2. APPLICATION PROCESS AND SELECTION

1.3. THE HOME PURCHASE PROCESS

1.4. HOMEBUYER COSTS

1.5. HOMEBUYER EDUCATION

1.6. CONFLICT OF INTEREST REQUIREMENTS

1.7. NON-DISCRIMINATION REQUIREMENTS

2.0. APPLICANT QUALIFICATIONS

2.1. CURRENT INCOME LIMITS

2.2. INCOME QUALIFICATION CRITERIA

2.3. DEFINITION OF AN ELIGIBLE HOMEBUYER

3.0. HOUSING UNIT ELIGIBILITY

3.1. LOCATION AND CHARACTERISTICS

3.2. CONDITIONS

3.3. ANTI-DISPLACEMENT POLICY AND RELOCATION ASSISTANCE

3.4. PROPER NOTIFICATION AND DISCLOSURES

4.0 THE PRIMARY LOAN

4.1 QUALIFYING RATIOS

4. 2 INTEREST RATE

4.3 LOAN TERM

4.4 IMPOUND ACCOUNT

5.0 THE PROGRAM LOAN

5.1 MAXIMUM AMOUNT OF PROGRAM ASSISTANCE

5.2 NON-RECURRING CLOSING COSTS

5. 3 AFFORDABILITY PARAMETERS FOR HOMEBUYERS

5.4 RATES AND TERMS FOR PROGRAM LOANS

5.5 LOAN-TO-VALUE RATIO

6.0 PROGRAM LOAN REPAYMENT

6. 1 PAYMENTS ARE VOLUNTARY

6.2 RECEIVING LOAN REPAYMENTS

6. 3 DUE UPON SALE OR TRANSFER

6.4 LOAN SERVICING POLICIES AND PROCEDURES

6.5 LOAN MONITORING PROCEDURES

7.0 PROGRAM LOAN PROCESSING AND APPROVAL

7. 1 COMPLETION OF UNDERWRITING AND APPROVAL OF PROGRAM LOAN

7. 2 PRIMARY AND PROGRAM LOAN DOCUMENT SIGNING

7. 3 ESCROW PROCEDURES

8.0 SUBORDINATE FINANCING

9.0 EXCEPTIONS AND SPECIAL CIRCUMSTANCES

9. 1 DEFINITION OF EXCEPTION

9. 2 PROCEDURES FOR EXCEPTIONAL CIRCUMSTANCES

10.0 DISPUTE RESOLUTION AND APPEALS PROCEDURE

3 TABLE OF CONTENTS (CONTINUED)

ATTACHMENTS
ATTACHMENT A: 24 CFR PART 5 ANNUAL INCOME INCLUSIONS AND EXCLUSIONS ATTACHMENT B: ANNUAL INCOME NET FAMILY ASSET INCLUSIONS AND EXCLUSIONS ATTACHMENT C: MAXIMUM PURCHASE PRICE/AFTER-REHAB VALUE LIMITS; HOME PER UNIT SUBSIDY LIMITS PER UNIT; CURRENT INCOME LIMITS
ATTACHMENT D: LOAN SERVICING POLICIES AND PROCEDURES
ATTACHMENT E: SELLER'S LEAD-BASED PAINT DISCLOSURE
ATTACHMENTF: DISCLOSURE TO SELLER WITH VOLUNTARY, ARM'S LENGTH,

PURCHASE OFFER
ATTACHMENT G: INSTRUCTIONS TO HOMEBUYER
ATTACHMENTH: LEAD-BASED PAINT NOTICE OF PRESUMPTION AND HAZARD REDUCTION FORM
ATTACHMENT I: HOMEBUYER PROGRAM LEAD COMPLIANCE DOCUMENT CHECKLIST

4 CITY OF UKIAH

HOMEBUYER PROGRAM GUIDELINES

1.0. GENERAL
The City of Ukiah, hereinafter referred to as the “Sponsor,” has entered into a contractual relationship with the California Department of Housing and Community Development (“HCD”) to administer one or more HCD-funded homebuyer programs. The homebuyer program described herein (the “Program”) is designed to provide assistance to eligible homebuyers in purchasing homes, also referred to herein as “housing units”, located within the Program’s eligible area, as described in Section 3.1.A. The Program provides this assistance in the form of deferred payment “silent” second priority loans as “Gap” financing toward the purchase price and closing costs of affordable housing units that will be occupied by the homebuyers as their primary residence. The Program will be administered by the City of Ukiah Housing Services Division. The City of Ukiah will serve both as the “Sponsor” and the “Program Operator” of the Program and will be referred to as “Sponsor” throughout these Program Guidelines.

1.1. PROGRAM OUTREACH AND MARKETING
All outreach efforts will be done in accordance with state and federal fair lending regulations to assure nondiscriminatory treatment, outreach and access to the Program.

No person shall, on the grounds of age, ancestry, color, creed, physical or mental disability or handicap, marital or familial status, medical condition, national origin, race, religion, gender or sexual orientation be excluded, denied benefits or subjected to discrimination under the Program. The Sponsor will ensure that all persons, including those qualified individuals with handicaps, have access to the Program.

A. The Fair Housing Lender and Accessibility logos will be placed on all outreach materials. Fair housing marketing actions will be based upon a characteristic analysis comparison (census data may be used) of the Program’s eligible area compared to the ethnicity of the population served by the Program (includes, separately, all applications given out and those receiving assistance) and an explanation of any underserved segments of the population. This information is used to show that protected classes (age, gender, ethnicity, race, and disability) are not being excluded from the Program. Flyers or other outreach materials, in English and any other language that is the primary language of a significant portion of the area residents, will be widely distributed in the Program-eligible area and will be provided to any local social service agencies. The Program may sponsor homebuyer classes to help educate homebuyers about the home buying process and future responsibilities. Persons who have participated in local homebuyer seminars will be notified about the Program.

B. The Sponsor will work with local real estate agents and primary lenders to explain the Program requirements for eligible housing units and homebuyers, and to review Program processes. Local real estate agents and primary lenders will also be encouraged to have their customers participate in the Program.

5 C. Section 504 of the Rehabilitation Act of 1973 prohibits the exclusion of an otherwise qualified individual, solely by reason of disability, from participation under any program receiving Federal funds. The Program Sponsor will take appropriate steps to ensure effective communication with disabled housing applicants, residents and members of the public.

1.2. APPLICATION PROCESS AND SELECTION
A. The Sponsor will maintain a database of pre-qualified applicants. Each applicant is asked to complete a pre-application form, which asks for basic information concerning income, employment, and credit history to establish potential eligibility for Program participation. Completed applications are processed on a first-come-first-served basis. Applications are deemed complete only if all information is completed, the application is signed and dated, and a primary lender’s pre-approval letter is attached to the application. Incomplete applications are returned to the applicant and will not be date/time stamped until complete.

B. Once the applicant is ready to purchase a home, their Program eligibility is confirmed through submittal of a full Program Application and they are invited to a briefing regarding participation in the Program. At the briefing the application is reviewed and the potential homebuyer is given a “Preliminary Eligibility Letter” for the Program along with the following forms: Program Brochure, Attachment (G) Instructions to Home Buyer, List of Participating Lenders, Attachment (E) Sellers Lead-Based Paint Disclosure and the EPA Booklet (Protect Your Family from Lead in Your Home) and (F) Notice to Seller.

If the Sponsor encounters material discrepancies and/or misrepresentations, and/or there are income, asset, household composition, or other important questions that can't be resolved, it reserves the right to deny assistance to the household. In this case, the applicant may re-apply after six months have elapsed from the time of written assistance denial.

C. Each applicant must participate in individual Homebuyer Counseling approved by the Sponsor and receive a certificate of completion.

6 DEBT SERVICE
FOR A FAMILY OF FOUR EARNING $ 6,250 PER MONTH

OTHER HOUSEHOLD DEBT SERVICE
Car Payment $ 350
Credit Card Payment 100
Total Other Debt $ 450
A $1,400 per month loan payment equates to borrowing $232,500 at 5.88% for a 30 year term.

SUBSIDY CALCULATION
FOR A FAMILY OF FOUR EARNING $3,388 PER MONTH

1.3. THE HOME PURCHASE PROCESS
A. The following is a simplified example of how a primary lender would analyze a homebuyer’s finances to determine how much the homebuyer could afford to borrow from the primary lender towards homeownership.

HOUSING PAYMENTS TOTAL OVERALL PAYMENTS
Principal & Interest Payment $ 1,400 $2,080 Housing
Insurance 200 +450 Other Debt Service
Taxes 480 $2,530 Total Debt Service
Total Housing Expense $2,080 (Overall debt service per month is 40.5% of $6,250) (PITI is 33% of $6,250)
Purchase Price of Property $ 460,000
Less Primary loan amount 235,000
Less down payment of $1,000 1,000
Equals “GAP” $ 224,000
Plus estimated allowable settlement charges 8,500
Equals Total Subsidy $ 232,500
B. The housing unit selection process will be conducted by the homebuyers.

C. Applicant submits executed standard form purchase and sale agreement and primary lender prequalification letter to Sponsor. The purchase and sale agreement will be contingent on the household and housing unit meeting Program eligibility requirements and receiving Program loan approval. Sponsor verifies applicant eligibility, housing unit and loan eligibility and amount of

7 assistance to be provided consistent with these guidelines.

D. Sponsor, submits recommendation to its Loan Committee for approval or denial, including the reasons for the recommendation. Sponsor provides written notification to Applicant of approval or denial with reason and, if denied, a copy of the Program’s appeal procedures.

E. When Primary Lender requirements are met, Program funds are deposited into escrow, with required closing instructions and loan documents.

F. At the time of escrow closing, the Sponsor shall be named as an additional loss payee on fire, flood (if required), and extended coverage insurance for the length of the loan and in an amount sufficient to cover all encumbrances or full replacement cost of the housing unit. A policy of Title Insurance naming the Sponsor as insured is also required.

1.4. HOMEBUYER COSTS
A. Eligible households must document that they have the funds necessary for down payment and closing costs as required by the Primary Lender and the Sponsor.

The Program’s down payment requirement (below) is in place even if the Primary Lender has a lower down payment requirement. If the Primary Lender has a higher down payment requirement, there is no additional down payment requirement required by the Program.

B. Homebuyer must contribute a minimum down payment of $1,000, but may contribute more if desired.

C. The Program will not provide a subsidy that is greater than the amount of the primary mortgage, and the borrower must borrow the maximum they are qualified to borrow from the primary lender. Funding from the Program is intended to fill a gap between the loan offered by the primary lender and the sale price of the housing unit.

D. The Program subsidy will write down the cost of the primary lender’s loan so that the payments of PITI are within approximately 25 to 40% of the gross household income. The Sponsor will determine the level of subsidy and affordability during the underwriting of the Program’s loan to make sure it confirms to the requirements of the Program.

E. The Loan Committee may approve limited exceptions to the DTI ratios, not to exceed 49%, on a case by case basis.

1.5. HOMEBUYER EDUCATION
Buying a home can be one of the most confusing and complicated transactions a household can make. Providing the future homebuyer with informative homebuyer education training can bring success to the Program, and most importantly, to the

8 homebuyer. It has been documented that first-time homebuyers that have had homebuyer education have the ability to handle problems that occur with homeownership. All Program participants are required to attend a Sponsor-approved homebuyer education class. The homebuyer education class should cover such topics as the following: preparing for homeownership; available financing; credit analysis; loan closing; homeownership responsibilities; home maintenance; impact of refinancing and loan servicing. Methods of homebuyer counseling and education may include, but are not limited to: one-on-one counseling between homebuyer, counselor and family/individual and/or group workshops and informational sessions. Tools of instruction may include fliers, brochures, power point presentations, worksheets, etc.

1.6. CONFLICT OF INTEREST REQUIREMENTS
When the Sponsor’s program contains Federal funds, the applicable Conflict of Interest requirements of 24 CFR Section 570.611 shall be followed for CDBG assistance.

1.7. NON-DISCRIMINATION REQUIREMENTS
The Program will be implemented in ways consistent with the Sponsor’s commitment to non-discrimination. No person shall be excluded from participation in, denied the benefit of, or be subject to discrimination under any program or activity funded in whole or in part with State funds on the basis of his or her religion or religious affiliation, age, race, color, creed, gender, sexual orientation, marital status, familial status (children), physical or mental disability, national origin, or ancestry, or other arbitrary cause.

2.0 APPLICANT QUALIFICATIONS

2.1. CURRENT INCOME LIMITS FOR THE AREA, BY HOUSEHOLD SIZE All applicants must certify that they meet the household income eligibility requirements for the applicable HCD program(s) and have their household income documented. The income limits in place at the time of loan approval will apply when determining applicant income eligibility. All applicants must have incomes at or below 80% of the Mendocino County area median income (AMI), adjusted for household size, as published by HCD for CDBG programs.
(See Attachment C for current income limits).

Household: Means one or more persons who will occupy a housing unit. Unborn children count in family size determination.

Annual Income: Generally, the gross amount of income of all adult household members that is anticipated to be received during the coming 12-month period.

2.2. INCOME QUALIFICATION CRITERIA
Projected annual gross income of the applicant household will be used to determine whether they are above or below the published HCD income limits. Income qualification criteria, as shown in the most recent HCD program-specific guidance at

9 http://www.hcd.ca.gov/grants-funding/income-limits/income-calculation-anddetermination-guide.shtml, will be followed to independently determine and certify the household’s annual gross income. The Sponsor should compare this annual gross income to the income the Primary Lender used when qualifying the household. The Primary Lender is usually underwriting to FHA or conventional guidelines and may not calculate the household income or assets in the same way as required by the Program.

Income will be verified by reviewing and documenting tax returns, copies of wage receipts, subsidy checks, bank statements and third-party verification of employment forms sent to employers. All documentation shall be dated within six months prior to loan closing and kept in the applicant file and held in strict confidence.

A. HOUSEHOLD INCOME DEFINITION:

Household income is the annual gross income of all adult household members that is projected to be received during the coming 12-month period, and will be used to determine program eligibility. Refer to Income Inclusions and Exclusions for further guidance to the types of incomes to be included or excluded when calculating gross annual income. For those types of income counted, gross amounts (before any deductions have been taken) are used. Two types of income that are not considered would be income of minors and live-in aides. Certain other household members living apart from the household also require special consideration. The household’s projected ability to pay must be used, rather than past earnings, when calculating income.

See Attachment A: 24 CFR Part 5 Annual Income Inclusions and Exclusions B. ASSETS:

There is no asset limitation for participation in the Program. Income from assets, however, is recognized as part of annual income under the Part 5 definition. An asset is a cash or non-cash item that can be converted to cash. The value of necessary items such as furniture and automobiles are not included. (Note: it is the income earned – e.g. interest on a savings account – not the asset value, which is counted in annual income.)
An asset’s cash value is the market value less reasonable expenses required to convert the asset to cash, including, for example, penalties or fees for converting financial holdings, and costs for selling real property. The cash value (rather than the market value) of an item is counted as an asset.

See Attachment B: Part 5 Annual Income Net Family Asset Inclusions and Exclusions

2.3. DEFINITION OF AN ELIGIBLE HOMEBUYER
For CDBG, an eligible homebuyer means an individual or individuals or an individual and his or her spouse who meets the income eligibility requirements and is/are not currently on title to real property. Persons may be on title of a manufactured home unit, who are planning to sell the unit as part of buying a home located on real property.

Documentation of homebuyer status will be required for all homebuyers. CDBG-funded programs may assist eligible homebuyers who are not “first-time” homebuyers.

10 3.0. HOUSING UNIT ELIGIBILITY

3.1. LOCATION AND CHARACTERISTICS
A. Housing units to be purchased must be located within the eligible area. The eligible area is described as follows: “incorporated area of the City of Ukiah.”
B. Housing unit types eligible for the homebuyer Program are new or previously owned single-family residences; condominiums; or manufactured homes in mobile home parks, in common-interest developments or on a single-family lot.

C. All housing units must be in compliance with State and local codes and ordinances.

D. Housing units located within a 100-year FEMA Special Flood Hazard Area (SFHA) will be required to provide proof of flood insurance with an endorsement naming the City as loss payee in order to close escrow.

3.2. CONDITIONS
A. Construction Inspection and Determining Need for Repairs.

Once the participating homebuyer has executed a purchase agreement for a housing unit, and prior to a commitment of Program funds, the following steps must be taken for the housing unit to be eligible for purchase under the Program:
1) When the Sponsor’s Program utilizes Federal funds and if the housing unit was constructed prior to 1978 then the lead-based paint requirements of Section 3.2.C will apply.
2) The Sponsor, or a certified housing inspector, will walk through the housing unit, determine if it is structurally sound, and identify any code related and health and safety deficiencies that need to be corrected. A list of code related repair items will be given to the homebuyers and their Realtor to be negotiated with the seller. New construction, and homes built within the previous 12 months and not previously occupied, are not subject to a home inspection.
3) Upon completion of all work required by the Sponsor, appraiser, pest inspector and/or certified housing inspector, a final inspection will be conducted prior to close of escrow. The inspector will sign off on all required construction work assuring that each housing unit receiving Program assistance is in compliance with local codes and health and safety requirements at the time of purchase and prior to occupancy.

11 B. Lead-Based Paint Hazards: All housing units built prior to 1978 for which CDBG funding is anticipated are subject to the requirements of this section 3.2.C.

Such homes must undergo a visual assessment by a person who has taken HUD’s online Visual Assessment course. Deteriorated paint must be stabilized using work safe methods. Clearance must be obtained after paint stabilization by a DHS certified LBP Risk Assessor/Inspector. CDBG general administrative and activity delivery funds may be used to pay for lead- based paint visual assessments, and if lead mitigation and clearance costs are incurred, these programs may incorporate the costs into the calculation of Program assistance.

The following requirements must be met:
1) Notification: a) Prior to homebuyer’s obligation to purchase a pre-1978 home, the Buyer will be given the most recent copy of and asked to read the EPA pamphlet “Protect Your Family From Lead in Your Home” (EPA 747-K-94-001). A signed receipt of the pamphlet will be kept in the Sponsor’s homebuyer file; b) A notice to residents is required following a risk assessment/inspection using form DHS 8552, which is provided by the DHS-certified Risk Assessor/Inspector; c) a notice to residents is required following lead-based paint mitigation work using Visual Assessment and Lead-based Paint Notice of Presumption and Hazard Reduction form, LBP – 1 (Attachment H).
2) Disclosure: Prior to the homebuyer’s obligation to purchase a pre-1978 housing unit, the HUD disclosure (Attachment E), “Seller’s Lead-based Paint Disclosure” notice must be provided by the seller to the homebuyer. 3) Inspections: The Inspector shall conduct a “Visual Assessment” of all the dwelling unit’s painted surfaces in order to identify deteriorated paint.

All deteriorated paint will be stabilized in accordance with CFR 35.1330 (a) and (b); and a Clearance shall be made in accordance with CFR

35.1340.
4) Mitigation: If stabilization is required, the contractor performing the mitigation work must use appropriately trained workers. Prior to the contractor starting mitigation work the Sponsor shall obtain copies of the contractor’s and workers’ appropriate proof of LBP training, as applicable to the job in order to assure that only qualified contractors and workers are allowed to perform the mitigation.

C. The Sponsor will: 1) confirm that the housing unit is within the eligible area, 2) review each proposed housing unit to ensure that it meets all eligibility criteria before funding, and 3) ensure a completed Lead Compliance Document Checklist is placed in each purchaser’s file (see Attachment I).

3.3 ANTI-DISPLACEMENT POLICY AND RELOCATION ASSISTANCE
Eligible homes will be those that are currently owner-occupied or have been vacant for

12 three months prior to the acceptance of a contract to purchase. A unit is ineligible if its purchase would result in the displacement of a tenant. It is not anticipated that the implementation of the Program will result in the displacement of any persons, households, or families. However, if tenant-occupied homes are included in the Program and relocation becomes necessary, the activity will be carried out in compliance with Sponsor’s relocation plan, which describes how those permanently displaced will be relocated and paid benefits in accordance with the following Federal laws.

A. Uniform Relocation Assistance (URA) and Real Property Acquisition Policies Act of 1970
The federal URA and Real Property Acquisition Policies, as amended by the URA Amendments of 1987, contains requirements for carrying out real property acquisition or the displacement of a person, regardless of income status, for a project or program for which HUD financial assistance (including CDBG and HOME) is provided.

Requirements governing real property acquisition are described in Chapter VIII. The implementing regulations, 49 CFR Part 24, require developers and owners to take certain steps in regard to tenants of housing to be acquired, rehabbed or demolished, including tenants who will not be relocated even temporarily.

B. Section104(d) of the Housing and Community Development Act of 1974 Section 104(d) requires each contractor (CHDO or State Recipient), as a condition of receiving assistance under CDBG, to certify that it is following a residential antidisplacement plan and relocation assistance plan. Section 104(d) also requires relocation benefits to be provided to low-income persons who are physically displaced or economically displaced as the result of a CDBG assisted project, and requires the replacement of low-income housing, which is demolished or converted. The implementing regulations for Section 104(d) can be found in 24 CFR Part 570(a).

3.4. PROPER NOTIFICATION AND DISCLOSURES
A. Upon selection of a housing unit, a qualified seller and homebuyer will be given the necessary disclosures for the Program. The homebuyer must have read and signed all Program disclosure forms. Any and all property disclosures must be reviewed and signed by the homebuyer and seller.

B. All owners who wish to sell their housing units must receive an acquisition notice (Attachment F) prior to submission of the homebuyer’s original offer. This notice will be included in the contract and must be signed by all owners on title. The disclosure must contain the items listed in 1.3.B. (required for federally-funded programs).

4.0 THE PRIMARY LOAN
Prior to obtaining a loan from the Sponsor, a homebuyer must provide evidence of financing for the maximum amount the Primary Lender is willing to loan (the “primary loan”).

13 4.1 QUALIFYING RATIOS
The front-end (housing) debt-to-income ratio shall be between 25% and 40% and is the percentage of a borrower’s gross monthly income (before deductions) that would cover the cost of the loan principal and interest payment, property taxes, property insurance, mortgage insurance, and HOA dues, if any. Exceptions to the front-end (housing) debt-toincome ratio must be approved by the Loan Committee.

The back-end (total) debt-to-income ratio shall be between 33% and 49% and is the percentage of a borrower’s gross monthly income that would cover the cost of housing as described in the paragraph above, plus any other monthly debt payments like car or personal loans and credit card debt, as well as child support and alimony payments.

Exceptions to the front-end (PITI) or back-end debt-to-income ratios must be approved by the Loan Committee.

4.2 INTEREST RATE
The primary loan must have a fixed interest rate that does not exceed, by greater than three percent, the Freddie Mac 30-year Fixed Rate Mortgage rate at:
https://www.freddiemac.com/pmms.

The applicable Freddie Mac rate should be from the date the primary mortgage rate was locked, or else the date of FTHB loan approval. No temporary interest rate buy-downs are permitted.

4.3 LOAN TYPE AND TERM
The primary loan shall be fully amortized and have a term “all due and payable” in no fewer than 30 years. There shall not be a balloon payment due before the maturity date of the Program loan.

4.4 IMPOUND ACCOUNT
All households will be required to have impound accounts for the payment of taxes and insurance to ensure they remain current.

5.0 THE PROGRAM LOAN

5.1 NON-RECURRING CLOSING COSTS
Non-recurring costs such as credit report, escrow, closing and recording fees, and title report and title insurance, title updates and/or related costs may be included in the Program loan.

5.2 AFFORDABILITY PARAMETERS FOR HOMEBUYERS
The actual amount of a buyer’s Program subsidy shall be computed according to the housing ratio parameters specified in Section 4.0.A. Each borrower shall receive only

14 the subsidy needed to allow them to become homeowners (“the Gap”) while keeping their housing costs affordable. The Sponsor will use the “front-end ratio” of housingexpense-to-income to determine if the amount of the proposed primary loan is acceptable and, ultimately, the Program subsidy amount required, bridging the gap between the acquisition cost (purchase price plus closing costs) less down payment, and the amount of the primary loan.

5.3 RATE AND TERMS FOR PROGRAM LOAN
All Program assistance to individual households shall be made in the form of deferred payment (interest and principal) loan (DPL).

The Program loan’s term shall be for 45 years.

The Program loan’s interest rate shall be 1% simple interest.

All Program loan payments shall be deferred because the borrowers will have their repayment ability fully utilized under the primary loan. Loan principal shall not be forgiven, and the loan period cannot be extended, except for loans that are resubordinated when a rate and term refinance is approved, per Attachment D.

5.4 COMBINED LOAN-TO-VALUE RATIO
The loan-to-value ratio for a Program loan, when combined with all other indebtedness to be secured by the property, shall not exceed 100 percent of the sales price plus a maximum of up to 5 percent of the sales price to cover actual closing costs.

6.0 PROGRAM LOAN REPAYMENT

6.1 PAYMENTS ARE VOLUNTARY
Borrowers may begin making voluntary payments at any time, without penalty.

6.2 RECEIVING LOAN PAYMENTS
Program loan payments will be made to:

City of Ukiah
Housing Division
Community Development Department
300 Seminary Avenue
Ukiah, CA 95482
The Sponsor will be the receiver of loan payments or recaptured funds and will maintain a financial record-keeping system to record payments and file statements on payment status.

Payments shall be deposited and accounted for in the Sponsor’s Program Income Account, as required by HCD programs. The Program lender will accept loan payments

15 from borrowers prepaying deferred loans, and from borrowers making payments in full upon sale or transfer of the property. All loan payments are payable to the Sponsor. The Sponsor may at its discretion, enter into an agreement with a third party to collect and distribute payments and/or complete all loan servicing aspects of the Program.

6.3 DUE UPON SALE OR TRANSFER
In the event that an owner sells, transfers title, or discontinues residence in the purchased property for any reason, the principal balance of the DPL is due and payable, except:

1. If the owner of the property dies, and the heir to the property meets income requirements, the First-Time Homebuyer definition, and intends to occupy the home as a principal residence, the heir may be permitted, upon approval of the Sponsor, to assume the loan at the rate and terms the heir qualifies for under the current participation guidelines. If the property owner dies and the heir does not meet eligibility requirements, the loan is due and payable.

2. If an owner wants to convert the property to a rental unit, or any commercial or non-residential use, the loan is due and payable.

3. The loan will be in default if the borrower fails to maintain required fire or flood insurance or fails to pay property taxes. See Attachment D on loan defaults for further information on property restrictions.

6.4 LOAN SERVICING POLICIES AND PROCEDURES
See Attachment D for local loan servicing policies and procedures. While the attached policy outlines a system that can accommodate a crisis that restricts borrower repayment ability, it should in no way be misunderstood: The loan must be repaid. All legal means to ensure the repayment of a delinquent loan as outlined in the Loan Servicing Policies and Procedures will be pursued.

6.5 LOAN MONITORING PROCEDURES
Sponsor will monitor Borrowers and their housing units annually to ensure adherence to Program requirements including, but not limited to, the following:

1. Owner-occupancy

2. Property tax payment

3. Hazard insurance coverage

4. Good standing on Primary loans

5. General upkeep of housing units

7.0 PROGRAM LOAN PROCESSING AND APPROVAL

1. Loan Processing

16 All homebuyers or their representatives will be sent out an eligibility packet with all the necessary forms, disclosures, information, and application. They should submit a complete application packet with all the Sponsor’s Program loan documents executed as well as all the information from the Primary Lender. The Primary Lender should submit:
1) accepted property sales contract with proper seller notification; 2) mortgage application with good faith estimates and first mortgage disclosures; 3) full mortgage credit report and rent verification; 4) current third party income verifications and verifications of assets; 5) homeownership education certificate, if applicable; and 6) signed underwriting transmittal summary and final signed loan application, both from primary lender. Staff will work with local lenders to ensure qualified participants receive only the benefit from the Sponsor’s Program needed to purchase the housing unit and that leveraged funds will be used when possible.

2. Creditworthiness
Qualifying ratios are only a rough guideline in determining a potential borrower’s creditworthiness. Many factors such as excellent or poor credit history, amount of down payment, and size of loan will influence the decision to approve or disapprove a particular loan. The borrower’s credit history will be reviewed by the Sponsor and documentation of such maintained in the loan file. The Sponsor may elect to obtain a credit report or rely on a current copy obtained by the primary lender.

3. Documents from Primary Lender
After initial review of the qualified homebuyer's application packet, the Sponsor will request any additional documents needed. Based on receipt and review of the final documents, the Sponsor will do an income certification, and homebuyer certification (review of credit report and income taxes). Documentation of affordability will then be verified and subsidy requirement determined.

4. Disclosure of Program and Loan Information to Homebuyers The Program’s application and disclosure forms will contain a summary of the loan qualifications of the borrower with and without Program assistance. Housing ratios with and without Program assistance are also outlined in these guidelines. Information on the Program’s application will be documented with third party verifications in the file.

For example, the sales contact will provide the final purchase price and outline how much of the closing costs are to be paid by the seller, etc. The appraisal, termite and title report will provide information to substantiate the information in the sales contract and guide the construction inspection. The Program loan application will provide current debt and housing information and will be documented by the credit report and income/asset verifications. The Primary Lender’s approval letter and estimated closing cost statement should reflect all the information in the loan package and show any contingencies of loan funding. Reviewing the Primary Lender’s loan underwriting documentation will provide basic information about the qualification of the applicant and substantiate the affordability provided by the Program loan. By reviewing and crosschecking all the Primary Lender information, the final Program loan amount

17 approved will fall within the affordability parameters of the Program.

7.1 COMPLETION OF UNDERWRITING AND APPROVAL OF PROGRAM LOAN Once the loan approval package has been completed it will be submitted to the Sponsor for approval. Sponsor will review the request and may approve it with or without conditions. Upon approval, a final closing date for escrow is set and Program funds are accessed for the homebuyer.

7. 2 PRIMARY AND PROGRAM LOAN DOCUMENT SIGNING
The homebuyer(s) sign promissory notes, loan agreements, deeds of trust, and statutory lending notices (Truth In Lending (TIL), etc.); the Deeds of Trust are recorded with the County Clerk/Recorder at the same time, and the request(s) for copy of Notice of Default are also recorded with the County Clerk/Recorder.

7. 3 ESCROW PROCEDURES
The escrow/title company shall review the escrow instruction provided by the Program lender and shall issue a California Land Title Association (CLTA) policy and an American Land Title Association (ALTA) policy after closing. The CLTA policy is issued to the homebuyer and protects them against failure of title based on public records and against such unrecorded risks as forgery of a deed. The ALTA policy is issued to each lender providing additional coverage for the physical aspects of the property as well as the homebuyer’s title failure. These aspects include anything that can be determined by only physical inspection, such as correct survey lines; encroachments; mechanics liens; mining claims and water rights. The Program lender instructs the escrow/title company in the escrow instructions as to what may show on the policy; the amount of insurance on the policy (all liens should be covered) and the loss payee (each lender should be listed as a loss payee and receive an original ALTA).

8.0 SUBORDINATE FINANCING
Subordinate loans may be used to cover mortgage subsidy costs that exceed the Program maximum loan amount. All subordinate liens must have the payments deferred and the term must be for at least as long as the term of the Program loan.

9.0 EXCEPTIONS AND SPECIAL CIRCUMSTANCES
The Sponsor may make amendments to these Participation Guidelines. Any changes shall be made in accordance with regulations and for CDBG-funded Programs only, approved by the Sponsor’s Loan Committee and/or governing body.

9. 1 DEFINITION OF EXCEPTION
Any case to which a standard policy or procedure, as stated in the guidelines, does not apply or an applicant treated differently from others of the same class would be an exception.

9. 2 PROCEDURES FOR EXCEPTIONAL CIRCUMSTANCES

18 The Sponsor or its agent may initiate consideration of an exception and prepare a report.

The report shall contain a narrative, including the Sponsor's recommended course of action and any written or verbal information supplied by the applicant. The report can be presented to the Sponsor’s loan committee and/or governing body for a decision.

10.0 DISPUTE RESOLUTION AND APPEALS PROCEDURE
Any applicant denied assistance from the Program has the right to appeal. Complaints concerning the Program should be made to the Sponsor first. If unresolved in this manner, the complaint or appeal must be made in writing and filed with the Sponsor. The Sponsor will then schedule a meeting with the Loan Committee. Their written response will be made within thirty (30) working days. If the applicant is not satisfied with the Committee's decision, a request for an appeal may be filed with the City Council. Final appeal must be filed in writing with HCD within one year after denial.

19 ATTACHMENT A
24 CFR Part 5 ANNUAL INCOME INCLUSIONS AND EXCLUSIONS
24 CFR Part 5 Annual Income Inclusions
§5.609 Annual income.
(a) Annual income means all amounts, monetary or not, which:
(1) Go to, or on behalf of, the family head or spouse (even if temporarily absent) or to any other family member; or
(2) Are anticipated to be received from a source outside the family during the 12-month period following admission or annual reexamination effective date; and (3) Which are not specifically excluded in paragraph (c) of this section. (4) Annual income also means amounts derived (during the 12-month period) from assets to which any member of the family has access.
(b) Annual income includes, but is not limited to:
(1) The full amount, before any payroll deductions, of wages and salaries, overtime pay, commissions, fees, tips and bonuses, and other compensation for personal services; (2) The net income from the operation of a business or profession. Expenditures for business expansion or amortization of capital indebtedness shall not be used as deductions in determining net income. An allowance for depreciation of assets used in a business or profession may be deducted, based on straight line depreciation, as provided in Internal Revenue Service regulations. Any withdrawal of cash or assets from the operation of a business or profession will be included in income, except to the extent the withdrawal is reimbursement of cash or assets invested in the operation by the family; (3) Interest, dividends, and other net income of any kind from real or personal property. Expenditures for amortization of capital indebtedness shall not be used as deductions in determining net income.

An allowance for depreciation is permitted only as authorized in paragraph (b)(2) of this section. Any withdrawal of cash or assets from an investment will be included in income, except to the extent the withdrawal is reimbursement of cash or assets invested by the family. Where the family has net family assets in excess of $5,000, annual income shall include the greater of the actual income derived from all net family assets or a percentage of the value of such assets based on the current passbook savings rate, as determined by HUD;
(4) The full amount of periodic amounts received from Social Security, annuities, insurance policies, retirement funds, pensions, disability or death benefits, and other similar types of periodic receipts, including a lump-sum amount or prospective monthly amounts for the delayed start of a periodic amount (except as provided in paragraph (c)(14) of this section); (5) Payments in lieu of earnings, such as unemployment and disability compensation, worker's compensation and severance pay (except as provided in paragraph (c)(3) of this section); (6) Welfare assistance payments.
(i) Welfare assistance payments made under the Temporary Assistance for Needy Families (TANF) program are included in annual income only to the extent such payments:
(A) Qualify as assistance under the TANF program definition at 45 CFR 260.31; and (B) Are not otherwise excluded under paragraph (c) of this section. (ii) If the welfare assistance payment includes an amount specifically designated for shelter and utilities that is subject to adjustment by the welfare assistance agency in accordance with the actual cost of shelter and utilities, the amount of welfare assistance income to be included as income shall consist of:

20 (A) The amount of the allowance or grant exclusive of the amount specifically designated for shelter or utilities; plus
(B) The maximum amount that the welfare assistance agency could in fact allow the family for shelter and utilities. If the family's welfare assistance is ratably reduced from the standard of need by applying a percentage, the amount calculated under this paragraph shall be the amount resulting from one application of the percentage. (7) Periodic and determinable allowances, such as alimony and child support payments, and regular contributions or gifts received from organizations or from persons not residing in the dwelling; (8) All regular pay, special pay and allowances of a member of the Armed Forces (except as provided in paragraph (c)(7) of this section).
(9) For section 8 programs only and as provided in 24 CFR 5.612, any financial assistance, in excess of amounts received for tuition and any other required fees and charges, that an individual receives under the Higher Education Act of 1965 (20 U.S.C. 1001 et seq.), from private sources, or from an institution of higher education (as defined under the Higher Education Act of 1965 (20 U.S.C. 1002)), shall be considered income to that individual, except that financial assistance described in this paragraph is not considered annual income for persons over the age of 23 with dependent children. For purposes of this paragraph, “financial assistance” does not include loan proceeds for the purpose of determining income. 24 CFR Part 5 Annual Income Exclusions
(c) Annual income does not include the following:
(1) Income from employment of children (including foster children) under the age of 18 years; (2) Payments received for the care of foster children or foster adults (usually persons with disabilities, unrelated to the tenant family, who are unable to live alone); (3) Lump-sum additions to family assets, such as inheritances, insurance payments (including payments under health and accident insurance and worker's compensation), capital gains and settlement for personal or property losses (except as provided in paragraph (b)(5) of this section); (4) Amounts received by the family that are specifically for, or in reimbursement of, the cost of medical expenses for any family member;
(5) Income of a live-in aide, as defined in §5.403;
(6) Subject to paragraph (b)(9) of this section, the full amount of student financial assistance paid directly to the student or to the educational institution;
(7) The special pay to a family member serving in the Armed Forces who is exposed to hostile fire; (8) (i) Amounts received under training programs funded by HUD; (ii) Amounts received by a person with a disability that are disregarded for a limited time for purposes of Supplemental Security Income eligibility and benefits because they are set aside for use under a Plan to Attain Self-Sufficiency (PASS);
(iii) Amounts received by a participant in other publicly assisted programs which are specifically for or in reimbursement of out-of-pocket expenses incurred (special equipment, clothing, transportation, child care, etc.) and which are made solely to allow participation in a specific program;
(iv) Amounts received under a resident service stipend. A resident service stipend is a modest amount (not to exceed $200 per month) received by a resident for performing a service for the PHA or owner, on a part-time basis, that enhances the quality of life in the development. Such services may include, but are not limited to, fire patrol, hall monitoring, lawn maintenance,

21 resident initiatives coordination, and serving as a member of the PHA's governing board. No resident may receive more than one such stipend during the same period of time; (v) Incremental earnings and benefits resulting to any family member from participation in qualifying State or local employment training programs (including training programs not affiliated with a local government) and training of a family member as resident management staff. Amounts excluded by this provision must be received under employment training programs with clearly defined goals and objectives, and are excluded only for the period during which the family member participates in the employment training program; (9) Temporary, nonrecurring or sporadic income (including gifts); (10) Reparation payments paid by a foreign government pursuant to claims filed under the laws of that government by persons who were persecuted during the Nazi era; (11) Earnings in excess of $480 for each full-time student 18 years old or older (excluding the head of household and spouse);
(12) Adoption assistance payments in excess of $480 per adopted child; (13) [Reserved]
(14) Deferred periodic amounts from supplemental security income and Social Security benefits that are received in a lump sum amount or in prospective monthly amounts, or any deferred Department of Veterans Affairs disability benefits that are received in a lump sum amount or in prospective monthly amounts.
(15) Amounts received by the family in the form of refunds or rebates under State or local law for property taxes paid on the dwelling unit;
(16) Amounts paid by a State agency to a family with a member who has a developmental disability and is living at home to offset the cost of services and equipment needed to keep the developmentally disabled family member at home; or
(17) Amounts specifically excluded by any other Federal statute from consideration as income for purposes of determining eligibility or benefits under a category of assistance programs that includes assistance under any program to which the exclusions set forth in 24 CFR 5.609(c) apply. A notice will be published in the FEDERAL REGISTER and distributed to PHAs and housing owners identifying the benefits that qualify for this exclusion. Updates will be published and distributed when necessary. [See https://www.federalregister.gov/documents/2014/05/20/2014- 11688/federally-mandated-exclusions-fromincome-updated-listing for most recent notice] (d) Annualization of income. If it is not feasible to anticipate a level of income over a 12-month period (e.g., seasonal or cyclic income), or the PHA believes that past income is the best available indicator of expected future income, the PHA may annualize the income anticipated for a shorter period, subject to a redetermination at the end of the shorter period.

22 ATTACHMENT B
PART 5 ANNUAL INCOME NET FAMILY ASSET INCLUSIONS AND EXCLUSIONS This table presents the 24 CFR Part 5 asset inclusions and exclusions as stated in the HUD Technical Guide for Determining Income and Allowances for the HOME Program (Third Edition; January 2005).

Inclusions

1. Cash held in savings accounts, checking accounts, safe deposit boxes, homes, etc. For savings accounts, use the current balance. For checking accounts, use the average 6-month balance. Assets held in foreign countries are considered assets.

2. Cash value of revocable trusts available to the applicant.

3. Equity in rental property or other capital investments. Equity is the estimated current market value of the asset less the unpaid balance on all loans secured by the asset and all reasonable costs (e.g., broker fees) that would be incurred in selling the asset. Under HOME, equity in the family's primary residence is not considered in the calculation of assets for owner-occupied rehabilitation projects.

4. Cash value of stocks, bonds, Treasury bills, certificates of deposit and money market accounts.

5. Individual retirement, 401(K), and Keogh accounts (even though withdrawal would result in a penalty).

6. Retirement and pension funds.

7. Cash value of life insurance policies available to the individual before death (e.g., surrender value of a whole life or universal life policy).

8. Personal property held as an investment such as gems, jewelry, coin collections, antique cars, etc.

9. Lump sum or one-time receipts, such as inheritances, capital gains, lottery winnings, victim's restitution, insurance settlements and other amounts not intended as periodic payments.

10. Mortgages or deeds of trust held by an applicant.

Exclusions

1. Necessary personal property, except as noted in number 8 of Inclusions, such as clothing, furniture, cars and vehicles specially equipped for persons with disabilities.

2. Interest in Indian trust lands.

3. Assets not effectively owned by the applicant. That is, when assets are held in an individual's name, but the assets and any income they earn accrue to the benefit of someone else who is not a member of the household and that other person is responsible for income taxes incurred on income generated by the asset.

4. Equity in cooperatives in which the family lives.

5. Assets not accessible to and that provide no income for the applicant.

6. Term life insurance policies (i.e., where there is no cash value).

7. Assets that are part of an active business. "Business" does not include rental of properties that are held as an investment and not a main occupation.

23 ATTACHMENT C

CDBG INCOME LIMITS FOR MENDOCINO COUNTY
INCOME LIMITS FOR MENDOCINO COUNTY*
(Limits became effective 6/1/2025)
Number of Persons in Household
1 2 3 4 5 6 7 8
80% of
AMI
$52,600 $60,100 $67,600 $75,100 $81,150 $87,150 $93,150 $99,150 *Sponsor will update the income limits annually as HCD provides new information on its website.
(for CDBG limits, search for “State of California CDBG Income Limits”) https://www.hcd.ca.gov/funding/income-limits/state-federal-income-limits/cdbg-homenhtf This chart is used as a guide to overcrowding

SPONSOR STANDARDS FOR BEDROOMS AND BATHROOMS

TO PREVENT OVERCROWDING
Maximum No. of Persons No. of Bedrooms No. of Bathrooms in the Household
1 SRO 1
1 0-BR 1
2 1-BR 1
4 2-BR 2
6 3-BR 2
8 4-BR 3
10 5-BR 3
12 6-BR 4

24 ATTACHMENT D

LOAN SERVICING POLICIES AND PROCEDURES

FOR CITY OF UKIAH
The City of Ukiah, hereafter called “Lender,” has adopted these policies and procedures in order to preserve its financial interest in properties whose “Borrowers” have been assisted with public funds. The Lender will to the greatest extent possible follow these policies and procedures, but each loan will be evaluated and handled on a case-by-case basis. The Lender has formulated this document to comply with state and federal regulations regarding the use of these public funds and any property restrictions, which are associated with them.

The policies and procedures are broken down into the following areas: 1) making required monthly payments or voluntary payments on a loan’s principal and interest; 2) required payment of property taxes and insurance; 3) required Request for Notice of Default on all second mortgages; 4) loans with annual occupancy restrictions and certifications 5) required noticing and limitations on any changes in title or use of property; 6) required noticing and process for requesting a subordination during a refinance; 7) processing of foreclosure in case of default on the loan.

1. Loan Repayments:

The Lender will collect monthly payments from those borrowers who are obligated to do so under Notes which are amortized promissory notes. Late fees will be charged for payments received after the assigned monthly due date, if the Borrower has a history of delinquency in payments of greater than two months.

For Notes which are deferred payment loans, the Lender must accept voluntary payments on the loan. Loan payments will be credited to principal. The Borrower may repay the loan balance at any time with no penalty.

2. Payment of Property Taxes and Insurance:

As part of keeping the loan from going into default, borrower must maintain property insurance coverage naming the Lender as loss payee. If borrower fails to maintain the necessary insurance, the Lender may take out force placed insurance to cover the property while the Borrower puts a new insurance policy in place. All costs for installing the necessary insurance will be added to the loan balance at time of installation of Borrower’s new insurance.

When a property is located in a 100-year flood plain, the Borrower will be required to carry the necessary flood insurance. A certificate of insurance for flood and for standard property insurance with an endorsement naming the City of Ukiah as lender loss payee will be required at close of escrow. The lender will verify the insurance on an annual basis.

Property taxes must be kept current during the term of the loan. If the Borrower fails to maintain payment of property taxes, then the lender may pay the taxes current and add the balance of the tax payment plus any penalties to the balance of the loan. Wherever possible, the Lender encourages Borrower to have impound accounts set up with their first mortgagee wherein they pay their taxes and insurance as part of their monthly mortgage payment.

25 3. Required Request for Notice of Default:

When the Borrower’s loan is in second position behind an existing first mortgage, it is the Lender's policy to prepare and record a "Request for Notice of Default" for each senior lien in front of Lender’s loan. This document requires any senior lienholder listed in the notice to notify the lender of initiation of a foreclosure action. The Lender will then have time to contact the Borrower and assist them in bringing the first loan current, if possible. The Lender can also monitor the foreclosure process and go through the necessary analysis to determine if the loan can be made whole or preserved. When the Lender is in a third position and receives notification of foreclosure from only one senior lienholder, it is in their best interest to contact any other senior lienholders regarding the status of their loans.

4. Annual Occupancy Restrictions and Certifications:

On owner-occupant loans, the Lender will require that Borrowers submit utility bills and/or other documentation annually to prove occupancy during the term of the loan. Some loans may have income and housing cost evaluations, which require a household to document that they are not able to make amortized loan payments, typically every five years. These loan terms are incorporated in the original Note and Deed of Trust.

5. Required Noticing and Restrictions on Any Changes of Title or Occupancy:

In all cases where there is a change in title or occupancy or use, the Borrower must notify the Lender in writing of any change. Lender and Borrower will work together to ensure the property is kept in compliance with the original Program terms and conditions such that it remains available as an affordable home for lowincome families. These types of changes are typical when Borrowers do estate planning (adding a relative to title) or if a Borrower dies and property is transferred to heirs or when the property is sold or transferred as part of a business transaction. Changes in title or occupancy must be in keeping with the objective of benefit to low-income households (below 80 percent of AMI).

Change from owner-occupant to owner-occupant occurs at a sale. When a new owner-occupant is not lowincome, the loan is not assumable and the loan balance is immediately due and payable. If the new owneroccupant qualifies as low-income, the purchaser may either pay the loan in full or assume all loan repayment obligations of the original owner-occupant, subject to the approval of the Lender’s Loan Committee.

If a transfer of the property occurs through inheritance, the heir (as owner-occupant) may be provided the opportunity to assume the loan at an interest rate based on household size and household income, provided the heir is income eligible. If the heir intends to occupy the property and is not low-income, the balance of the loan is due and payable. If the heir intends to act as an owner-investor, the balance of the loan may be converted to an owner/investor interest rate (such as 1-5%) and a loan term and a rent limitation agreement is signed and recorded on title. All such changes are subject to the review and approval of the Lender’s Loan Committee.

Change from owner-occupant to owner-investor occurs when an owner-occupant decides to move out and rent the assisted property, or if the property is sold to an investor. If the owner converts any assisted unit from owner-occupied to rental, the loan is due in full.

Conversion to use other than residential use is not allowable where the full use of the property is changed from residential to commercial or other. In some cases, Borrowers may request that the Lender allow for a partial conversion where some of the residence is used for a business but the household still resides in the property. Partial conversions can be allowed if it is reviewed and approved by any and all agencies required by local statute. If the use of the property is converted to a fully non-residential use, the loan balance is due

26 and payable.

6. Requests for Subordinations:

When a Borrower wishes to refinance their existing first mortgage, they must submit a subordination request to the Sponsor. The Sponsor will subordinate their loan only when there is no “cash out” as part of the refinance. No cash out means there are no additional charges on the transaction above loan and escrow closing fees. There can be no third-party debt payoffs or additional encumbrances on the property above traditional refinance transaction costs. The refinance should lower the existing housing cost of the household.

The total indebtedness on the property should not exceed the current market value except when the borrower is obtaining a HARP II or other similar federally approved refinance loan. If the HARP II or other similar financing is approved and meets all other requirements, Combined Loan-To-Value will not be considered when reviewing the subordination request.

Also, the loan must:

1. be fully amortized and have a fixed interest rate that does not exceed the current market rate;

2. not have a temporary interest rate buy-down;

3. have a term “all due and payable” that matures prior to or concurrently with the maturity date of the Promissory Note. Therefore, the maturity date of the existing Promissory Note should be modified to coincide with the maturity date of the new first mortgage; and,

4. not have a balloon payment due before the maturity date of the Program loan.

Upon receiving the proper documentation from the refinance lender, the request will be considered by the Loan Committee for review and approval. Upon approval, the escrow company will provide the proper subordination document for execution and recordation by the Sponsor.

7. Process for Loan Foreclosure:

Upon any condition of loan default: 1) non-payment; 2) lack of insurance or property tax payment; 3) change in title or use without approval; 4) default on senior loans, the Lender will send a letter to the Borrower notifying them of the default situation. If the default situation continues, the Lender may start a formal process of foreclosure.

When a senior lienholder starts a foreclosure process and the Lender is notified via a Request for Notice of Default, the Lender, who is the junior lienholder, may cancel the foreclosure proceedings by "reinstating" the senior lienholder. The reinstatement amount or payoff amount must be obtained by contacting the senior lienholder. This amount will include all delinquent payments, late charges and fees to date. Lender must confer with Borrower to determine if, upon paying the senior lienholder current, the Borrower can provide future payments. If this is the case, then the Lender may cure the foreclosure and add the costs to the balance of the loan with a Notice of Additional Advance on the existing note.

If the Lender determines, based on information on the reinstatement amount and status of Borrower, that bringing the loan current will not preserve the loan, then staff must determine if it is cost effective to protect their position by paying off the senior lienholder in total and restructure the debt such that the unit is made affordable to the Borrower. If the Lender does not have sufficient funds to pay the senior lienholder in full, then they may choose to cure the senior lienholder and foreclose on the property themselves. As long as there is sufficient value in the property, the Lender can afford to pay for the foreclosure process and pay off the senior lienholder and retain some or all of their investment.

If the Lender decides to reinstate, the senior lienholder will accept the amount to reinstate the loan up until five (5) days prior to the set "foreclosure sale date." This "foreclosure sale date" usually occurs about four (4)

27 to six (6) months from the date of recording of the "Notice of Default." If the Lender fails to reinstate the senior lienholder before five (5) days prior to the foreclosure sale date, the senior lienholder would then require a full pay off of the balance, plus costs, to cancel foreclosure. If the Lender determines the reinstatement and maintenance of the property not to be cost effective and allows the senior lienholder to complete foreclosure, the Lender's lien may be eliminated due to insufficient sales proceeds.

Lender as Senior Lienholder
When the Lender is first position as a senior lienholder, active collection efforts will begin on any loan that is 31 or more days in arrears. Attempts will be made to assist the homeowner in bringing and keeping the loan current. These attempts will be conveyed in an increasingly urgent manner until loan payments have reached 90 days in arrears, at which time the Lender may consider foreclosure. Lender’s staff will consider the following factors before initiating foreclosure:
1) Can the loan be cured and can the rates and terms be adjusted to allow for affordable payments such that foreclosure is not necessary?
2) Can the Borrower refinance with a private lender and pay off the Lender? 3) Can the Borrower sell the property and pay off the Lender? 4) Does the balance warrant foreclosure? (If the balance is under $5,000, the expense to foreclose may not be worth pursuing.)
5) Will the sales price of home "as is" cover the principal balance owing, necessary advances, (maintain fire insurance, maintain or bring current delinquent property taxes, monthly yard maintenance, periodic inspections of property to prevent vandalism, etc.) foreclosure, and marketing costs? If the balance is substantial and all of the above factors have been considered, the Lender may opt to initiate foreclosure. The Borrower must receive, by certified mail, a thirty-day notification of foreclosure initiation.

This notification must include the exact amount of funds to be remitted to the Lender to prevent foreclosure (such as, funds to bring a delinquent BMIR current or pay off a DPL).

At the end of thirty days, the Lender should contact a reputable foreclosure service or local title company to prepare and record foreclosure documents and make all necessary notifications to the owner and junior lienholders. The service will advise the Lender of all required documentation to initiate foreclosure (Note and Deed of Trust usually) and funds required from the owner to cancel foreclosure proceedings. The service will keep the Lender informed of the progress of the foreclosure proceedings.

When the process is completed, and the property has "reverted to the beneficiary" at the foreclosure sale, the Lender could sell the home themselves under a homebuyer program or use it for an affordable rental property managed by a local housing authority or use it for transitional housing facility or other eligible use. The Lender could contract with a local real estate broker to list and sell the home and use those funds for program income eligible uses.

28 ATTACHMENT E

SELLERS LEAD-BASED PAINT DISCLOSURE
Disclosure of Information on Lead-Based Paint and/or Lead-Based Paint Hazards Lead Warning Statement
Every purchaser of any interest in residential real property on which a residential dwelling was built prior to 1978 is notified that such property may present exposure to lead from lead-based paint that may place young children at risk of developing lead poisoning. Lead poisoning in young children may produce permanent neurological damage, including learning disabilities, reduced intelligence quotient, behavioral problems, and impaired memory. Lead poisoning also poses a particular risk to pregnant women. The seller of any interest in residential real property is required to provide the buyer with any information on lead-based paint hazards from risk assessments or inspections in the seller’s possession and notify the buyer of any known lead-based paint hazards. A risk assessment or inspection for possible lead-based paint hazards is recommended prior to purchase.

Seller’s Disclosure
(a) Presence of lead-based paint and/or lead-based paint hazards (check (i) or (ii) below):
(i) Known lead-based paint and/or lead-based paint hazards are present in the housing (explain). (ii) Seller has no knowledge of lead-based paint and/or lead-based paint hazards in the housing. (b) Records and reports available to the seller (check (i) or (ii) below):
(i) Seller has provided the purchaser with all available records and reports pertaining to Lead-based paint and/or lead-based paint hazards in the housing (list documents below). ————————————————————————————————————————
(ii) Seller has no reports or records pertaining to lead-based paint and/or lead-based paint hazards in the housing.

Purchaser’s Acknowledgment (initial)
(c) Purchaser has received copies of all information listed above. (d) Purchaser has received the pamphlet Protect Your Family from Lead in Your Home. (e) Purchaser has (check (i) or (ii) below):
(i) received a 10-day opportunity (or mutually agreed upon period) to conduct a risk assessment or inspection for the presence of lead-based paint and/or lead-based paint hazards; or Agent’s Acknowledgment (initial)
(f) Agent has informed the seller of the seller’s obligations under 42 U.S.C. 4852d and is aware of his/her responsibility to ensure compliance.

Certification of Accuracy
The following parties have reviewed the information above and certify, to the best of their knowledge, that the information they have provided is true and accurate.
—————————— —————————— ————————— —————————
Seller Date Seller Date
—————————— —————————— ————————— —————————
Purchaser Date Purchaser Date
—————————— —————————— ————————— —————————
Agent Date Agent Date

29 ATTACHMENT F
Disclosure to Seller with Voluntary, Arm's Length Purchase Offer DECLARATION This is to inform you that would like to purchase the property, located at , if a satisfactory agreement can be reached. We are prepared to pay $ for a clear title to the property under conditions described in the attached proposed contract of sale.

Because Federal funds may be used in the purchase, however, we are required to disclose to you the following information:

1. The sale is voluntary. If you do not wish to sell, the buyer, , thru the agency, will not acquire your property. The buyer does not have the power of eminent domain to acquire your property by condemnation (i.e. eminent domain) and the agency/Sponsor will not use the power of eminent domain to acquire the property.

2. The estimated fair market value of the property is $ and was estimated by , to be finally determined by a professional
appraiser prior to close of escrow.

Since the purchase would be a voluntary, arms length, transaction you would not be eligible for relocation payments or other relocation assistance under the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970 (URA), or any other law or regulation. Also, as indicated in the contract of sale, this offer is made on the condition that no tenant will be permitted to occupy the property before the sale is completed.

Again, please understand that if you do not wish to sell your property, we will take no further action to acquire it. If you are willing to sell the property under the conditions described in the attached contract of sale, please sign the contract and return it to us at:
. If you have any questions about this
matter, please contact at .

Sincerely,
Title
Buyer Date
Buyer Date
Form continues on next page with Seller’s Acknowledgment

30 Disclosure to Seller with Voluntary, Arm's Length Purchase Offer (Page 2) Acknowledgement
As the Seller I/we understand that the will inspect the property for health and safety deficiencies. I/we also understand that public funds may be involved in this transaction and, as such, if the property was built before 1978, a lead-based paint disclosure must be signed by both the buyer and seller, and that a Visual Assessment will be conducted to determine the presence of deteriorated paint.

As the Seller, I/we understand that under the City’s program, the property must be currently owner- occupied, vacant for three months at the time of submission of purchase offer, new (never occupied), or renter purchasing the unit. I/we hereby certify that the property is:

Vacant at least 3 months; Owner-occupied; New; or Being Purchased by Occupant I/we hereby certify that I have read and understand this “Declaration” and a copy of said Notice was given to me prior to the offer to purchase. If received after presentation of the purchase offer, I/We choose to withdraw or not to withdraw, from the Purchase Agreement.

Seller Date
Seller Date

31 ATTACHMENT G

CITY OF UKIAH

INSTRUCTIONS TO HOMEBUYER
A. Participant works with lender of choice to obtain the primary lender’s pre-qualification letter.

B. Participant works with real estate agent to select home. Program disclosures are reviewed with agent for presentation to seller.

C. Participant selects home and enters into a purchase contract (contingent upon receiving Program loan approval). Lender provides the Sponsor with a copy of:
- real estate sales contract
- residential loan application and credit report
- verified income documentation
- disclosure statement
- proof of personal funds for participation in program
- breakdown of closing costs
- structural pest control clearance
- appraisal with photos and preliminary title report
D. Sponsor reviews paperwork to determine program eligibility and financing affordability for participant.

E. Sponsorstaff meets with qualified applicant to provide information relative to the program requirements, the lending process, and homeownership responsibilities.

F. Sponsor has home inspected to document health & safety and code compliance. Notice of any deficiencies or needed corrections are given to participant's real estate agent, with recommended course of action. New construction and homes built within the previous 12 months and not previously occupied are not subject to a home inspection.

G. Sponsor requests loan approval from Sponsor’s Loan Committee. Following loan approval, Sponsor prepares Deed of Trust, Promissory Note, Request for Notice of Default, Loan Agreement, Owner-Occupant Agreement with City and Escrow Instructions, and requests check and deposits same into escrow.

H. Escrow company furnishes Sponsor with proof of documents to be recorded, and any escrow closeout information. After receipt of recorded loan documents, Final escrow Settlement Statement, Insurance Loss Payee Certification and Final Title Insurance Policy, Sponsor closes out the loan file.

32 Printed Name: Signature: Date:

Section 5: Resident Receipt of Notice for Presumption or Lead-Based Paint Hazard Reduction Activity

ATTACHMENT H

LEAD-BASED PAINT

VISUAL ASSESSMENT,NOTICE OF PRESUMPTION, AND HAZARD REDUCTION FORM Section 1: Background Information
Property Address: No LBP found or LBP exempt 
Select one: Visual Assessment  Presumption  Hazard Reduction  Section 2: Visual Assessment. Fill out Sections 1, 2, and 6. If paint stabilization is performed, also fill out Sections 4 and 5 after the work is completed.

Visual Assessment Date: Report Date:

Check if no deteriorated paint found 
Attachment A: Summary where deteriorated paint was found.

Section 3: Notice of Presumption. Fill out Sections 1, 3, 5, and 6. Provide to occupant w/in 15 days of presumption.

Date of Presumption Notice:

Lead-based paint is presumed to be present  and/or Lead-based paint hazards are presumed to be present  Attachment B: Summary of Presumption:

Section 4: Notice of Lead-Based Paint Hazard Reduction Activity. Fill out Sections 1, 4, 5, and 6. Provide to occupant w/in 15 days of after work completed.

Date of Hazard Reduction Notice:

Initial Hazard Reduction Notice? Yes  No  Start & Completion Dates:

If “No”, dates of previous Hazard Reduction Activity Notices:

Attachment C: Activity locations and types.

Attachment D: Location of building components with lead-based paint remaining in the rooms, spaces or areas where activities were conducted.

Attachment E: Attach clearance report(s), using DHS form 8552 (and 8551 for abatement activities) Section 6: Contact Information Organization:

Contact Name: Contact Signature:

Date: Address: Phone:

33 ATTACHMENT I
Homebuyer Program Lead Compliance Document Checklist
The following documents should be in each Homebuyer unit file to document compliance with the lead requirements:

Document Name Purpose 
Lead Safe Housing Rule Screening Sheet Documents exemptions Physical inspection form (HQS or equivalent) Documents visual assessment results
Seller Certification Seller certifies that
paint was stabilized by
qualified workers and
that safe work
practices were
followed during paint
stabilization
Clearance Report and Clearance Review Worksheet Documentsthat unit passed clearance
Disclosure Form Documentsthat buyer
received disclosure
and pamphlet.

Lead Hazard Reduction Notice Documents that buyer
received required lead
hazard reduction
notification.

This was taken from the HUD Website at:
http://portal.hud.gov/hudportal/documents/huddoc?id=20264_leadcompliance.doc

ATTACHMENT 2

RESOLUTION NO. 2025-

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

COMMUNITY DEVELOPMENT BLOCK GRANT HOMEOWNER PROGRAM GUIDELINES WHEREAS, the City of Ukiah has drafted Community Development Block Grant (CDBG) Homeowner Program Guidelines using templates provided by the State of California Department of Housing and Community Development; and
WHEREAS, as part of a regular meeting of the City Council of the City of Ukiah; held October 15, 2025, the City Council reviewed and considered proposed CDBG Homebuyer Program Guidelines and received public comment in a public hearing.

NOW, THEREFORE BE IT RESOLVED as follows:

1. The City Council of the City of Ukiah has reviewed and hereby adopts the City of Ukiah Community Development Block Grant (CDBG) Homeowner Program Guidelines attached hereto as Exhibit A.

2. The City Manager or designee is authorized and directed to act on the City’s behalf in all matters pertaining to the CDBG Homeowner Program Guidelines
PASSED, ADOPTED and APPROVED this 15TH day of October, 2025, by the following vote on roll call vote:

AYES:

NOES:

ABSTAIN:

ABSENT:
_______________________________
Douglas F. Crane, Mayor
ATTEST:
_______________________________
Kristine Lawler, City Clerk

Agenda Item No: 14.a.

MEETING DATE/TIME: 10/15/2025

ITEM NO: 2025-1064

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

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

1. 2025 City Council Special Assignments and Ad Hocs
Summary: City Council members will provide reports and updates on their committee and ad hoc assignments. If necessary, the Council may consider modifications.

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

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

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

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

BUDGET AMENDMENT REQUIRED: N/A
CURRENT BUDGET AMOUNT: N/A
PROPOSED BUDGET AMOUNT: N/A
FINANCING SOURCE: N/A
REVENUE: No GRANT: No
PREVIOUS CONTRACT/PURCHASE ORDER NO.: N/A
COORDINATED WITH: N/A
STRATEGIC PLAN (SP): N/A
CLIMATE INITIATIVES (CI): N/A
GENERAL PLAN ELEMENTS (GP): N/A

2025 CITY COUNCIL SPECIAL ASSIGNMENT LIST

LOCAL / UKIAH VALLEY MTG DATE/TIME MEETING LOCATION MAILING ADDRESS/CONTACT COMMITTEE FUNCTION ASSIGNED TO PRINCIPAL STAFF SUPPORT City Broadband Project TBD TBD
Civic Center300 Seminary Ave.Ukiah, CA 95482
to evaluate the Request for Proposal (RFP) for the Internet Service Provider (ISP) for the California's Public Utilities Commission (CPUC) Last Mile Broadband Orozco Jim Robbins, Grants Manager, 463-6708; [email protected] Investment Oversight Committee Varies
Civic Center 300 Seminary Ave. Ukiah, CA 95482
Civic Center300 Seminary Ave.Ukiah, CA 95482
Reviews City investments, policies, and strategies
CraneOrozco - Alternate Alan Carter, Treasurer
Dan Buffalo, Director of Finance; 463-6220 [email protected] Disaster Council
Shall meet a minimum of once a year at a time and place designated upon call of the chair Place designated upon call of the chair or, if she/he is unavailable or unable to call such meeting, the first vice chair and then the City Manager or her/his designee.

Office of Emergency Management 300 Seminary Ave. Ukiah, CA 95482467-5720 - Traci Boyl Develop any necessary emergency and mutual aid plans, agreements, ordinances, resolutions, rules, and regulations.

OrozcoCriss - Alternate
Traci Boyl, City Manager's Office Management Analyst; 467-5720; [email protected] Greater Ukiah Business & Tourism Alliance (GUPTA)
4th Monday of month, 10 a.m.
200 S School St.Ukiah, CA 95482
200 S School St.Ukiah, CA 95482
Promotes tourism and works to strengthen and promote the historic downtown and businesses within the greater Ukiah area Marianne Davison - Community Services Department Staff Orozco - Alternate Shannon Riley, Deputy City Manager; 467-5793 [email protected] Mendocino County Inland Water and Power Commission (IWPC) 2nd Thursday of month, 6:00 p.m.

Civic Center 300 Seminary Avenueconference room 5
IWPC Staff P.O. Box 1247Ukiah, CA 95482391-7574 - Candace Horsley Develops coordination for water resources and current water rights: Potter Valley project - Eel River Diversion RodinOrozco - Alternate
Sean White, Director of Water Resources; 463-5712 [email protected] North Coast Opportunities (NCO) 4th Wednesday of month, 2 p.m. Alternating locations - Ukiah and Lakeport Governing Board Chair North Coast Opportunities413 North State StreetUkiah, CA 95482 Assist low income and disadvantaged people to become self reliant Neil Davis Neil Davis, Community Services Director; [email protected] Sun House Guild ex officio 2nd Tuesday of month, 10:30 a.m. Sun House 431 S. Main St. Ukiah, CA 431 S. Main Street Ukiah, CA 95482 467-2836 Support and expand Grace Hudson Museum Orozco, Sher Neil Davis - Alternate David Burton, Museum Director; 467-2836 [email protected] Ukiah Valley Basin Groundwater Sustainability Agency (GSA) 2nd Thursday of month, 1:30 p.m.

Board of Supervisors Chambers; 501 Low Gap Road Ukiah, CA County Executive Office501 Low Gap Rd., Rm. 1010Ukiah, CA 95482463-4441 GSA serves as the Groundwater Sustainability Agency in the Ukiah Valley basin CraneN/A - Alternate
Sean White, Director of Water Resources; 463-5712 [email protected]

MENDOCINO COUNTY MTG DATE/TIME MEETING LOCATION MAILING ADDRESS/CONTACT COMMITTEE FUNCTION ASSIGNED TO PRINCIPAL STAFF SUPPORT City Selection Committee Called as required by the Clerk of the Board BOS Conference Room 501 Low Gap Rd. Rm. 1090 Ukiah, CA C/O: BOS 501 Low Gap Rd., Rm 1090 Ukiah, CA 95482 463-4441 Makes appointments to LAFCO and Airport Land Use Commission (Mayor - Primary; Vice Mayor - Alternate) Mayor Crane Vice Mayor Sher Kristine Lawler, City Clerk; 463-6217 [email protected] Economic Development & Financing Corporation (EDFC)
2nd Thursday of month, 2:00 p.m.

Primarily 631 S. Orchard Street (location varies)
Executive Director631 South Orchard AvenueUkiah, CA 95482467-5953 Multi-agency co-op for economic development and business loan program Riley (appointed 12/19/18) Shannon Riley, Deputy City Manager; 467-5793 [email protected] Library Advisory Board
3rd Wednesdays of alternate months; 1:00
p.m.

Various Mendocino County Libraries Ukiah County Library 463-4491 Review library policy and activities Sher Rodin - Alternate Kristine Lawler, City Clerk; 463-6217; [email protected] Mendocino County 1st District Liaison Monthly; TBD
Civic Center Annex conference room #5 411 West Clay St. Ukiah, CA 95482 Civic Center300 Seminary Ave.Ukiah, CA 95482
To coordinate activities and policy development with the City's 1st District Supervisor Crane Rodin - Alternate
Sage Sangiacomo, City Manager; 463-6221; [email protected] Mendocino County 2nd District Liaison 1st Wednesdays of month, 8:00 a.m.

Civic Center Annex conference room #5 411 West Clay St. Ukiah, CA 95482 Civic Center300 Seminary Ave.Ukiah, CA 95482
To coordinate activities and policy development with the County's 2nd District Supervisor CrissRodin - Alternate
Shannon Riley, Deputy City Manager;467-5793 [email protected] Mendocino Council of Governments (MCOG)
1st Monday of month, 1:30 p.m.

Board of Supervisors Chambers 501 Low Gap Road Ukiah, CA Executive Director367 N. State Street, Ste. 206 Ukiah, CA 95482463-1859 Plan and allocate State funding, transportation, infrastructure and project County wide Criss Sher - Alternate
Tim Eriksen, Public Works Director/City Engineer; 463-6280 [email protected] Schlatter, Community Development Director; 463-6219; [email protected] Mendocino County Airport Land Use Commission As needed
BOS Conference Room 501 Low Gap Rd., Rm. 1090, Ukiah, CA Mendocino County Executive Office 501 Low Gap Rd. Rm. 1010 Ukiah, CA 95482 To formulate a land use compatibility plan, provide for the orderly growth of the airport and the surrounding area, and safeguard the general welfare of the inhabitants within the vicinity Liaisons: Owen/Schlatter
Greg Owen, Airport Manager; 467-2855; [email protected] Craig Schlatter, Director of Community Development; 463-6219; [email protected] Mendocino County Local Area Formation Commission (LAFCO) 1st Monday of month, 9:00 a.m. Board of Supervisors Chambers Executive Director200 S. School Street, Ste. 2 Ukiah, CA 95482463-4470 Required by legislation - planning spheres of influence, annexation, service areas, and special districts RodinCrane - Alternate for both city seat
members on Commission
Craig Schlatter, Director of Community Development; 463-6219; [email protected] Updated: 9/4/2025

2025 CITY COUNCIL SPECIAL ASSIGNMENT LIST

MENDOCINO COUNTY
Continued MTG DATE/TIME MEETING LOCATION MAILING ADDRESS/CONTACT COMMITTEE FUNCTION ASSIGNED TO PRINCIPAL STAFF SUPPORT Mendocino Solid Waste Management Authority (MSWMA)
3rd Thursday of every other month (varies), 10:00 a.m.

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

Alternating locations - Ukiah Conference Center or Fort Bragg, or Point Arena Executive Director241 Plant RoadUkiah, CA 95482462-1422 County-wide bus transportation issues and funding Sher Rodin - Alternate Tim Eriksen, Public Works Director/City Engineer; 463-6280 [email protected] Mendocino Youth Project JPA Board of Directors
3rd Wednesday of month, 7:45 a.m. 776 S. State Street Conference Room Mendocino Co. Youth Project776 S. State Street, Ste. 107Ukiah, CA 95482 707-463-4915 Targets all youth with a focus on drug and alcohol prevention, healthy alternatives and empowering youth to make healthy choices Criss Max Brazill, Admin Lieutenant - Alternate
Tom Corning, Police Chief; 463-6254;
[email protected]
Russian River Flood Control District
(RRFCD) Liaison
1st Monday of month, 5:30 p.m.
151 Laws Ave.,Suite D Ukiah, CA
151 Laws Ave., Ukiah, CA 95482; [email protected]; 462-5278 Proactively manage the water resources of the upper Russian River for the benefit of the people and environment of Mendocino County White/Orozco Sean White, Director of Water Resources; 463-5712 [email protected] Ukiah Players Theater Board of Directors
3rd Tuesday of month, 6:00 p.m
1041 Low Gap Rd Ukiah, CA 95482 462-1210
1041 Low Gap RdUkiah, CA 95482462-1210
To oversee the activities, organization and purpose of the Ukiah Players Theater
Greg Owen, Airport Manager(appointed 12/19/18)
Kristine Lawler, City Clerk; 463-6217 [email protected] Ukiah Unified School District (UUSD) Committee Quarterly 511 S. Orchard, Ste. D Ukiah, CA 95482 511 S. Orchard Ukiah, CA 95482 Information exchange with UUSD Board Chair, Mayor, Superintendent, and City Manager Orozco, Criss Sage Sangiacomo, City Manager Cedric Crook, Police Chief Sage Sangiacomo, City Manager; 463-6221 [email protected]

REGIONAL MTG DATE/TIME LOCATION MAILING ADDRESS/CONTACT COMMITTEE FUNCTION ASSIGNED TO PRINCIPAL STAFF SUPPORT Great Redwood Trail Agency (GRTA) Bi-monthly, 3rd Thursdays, 10:30 a.m. Various Locations - announced 419 Talmage Road, Suite M Ukiah, CA 95482 463-3280 Provides a unified and revitalized rail infrastructure meeting the freight and passenger needs of the region Rodin Sher- Alternate Neil Davis, Community Services Director 467-5764 [email protected] League of California Cities Redwood Empire Legislative Committee Prior to Division Meetings, meets 3x in person and then via conference call Various locations that are announced
Redwood Empire League President; Public Affairs Program Manager (916) 658-8243 Elected city officials and professional city staff attend division meetings throughout the year to share what they are doing and advocate for their interests in Sacramento OrozcoCriss - Alternate
Sage Sangiacomo, City Manager; 463-6221
[email protected]
Russian River Watershed Association (RRWA)
4th Thursday of month, 9:00 a.m. (only 5 times a year)
Windsor Town Hall9291 Old Redwood Hwy, #400Windsor, CA 95492707-838-1000 Russian River Watershed Association 2235 Mercury Way, Suite 105Santa Rose, CA [email protected] 707-508-3670 (message only) Consider issues related to Russian river - plans projects and funding requests RodinSher - Alternate
Tim Eriksen, Public Works Director/City Engineer;
463-6280 [email protected]
Northern California Power Agency (NCPA) - Commission
4th Thursday of month, 9:00 a.m. (see NCPA calendar)
Roseville, CA and other locations
651 Commerce Drive Roseville, CA 95678916-781-4202
Pool of State and local power utilities developing and operating power generation, providing scheduling and related energy services and providing regulatory and legislative support.

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

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

CraneSauers - Alternate
Cindi Sauers - Electric Utility Director;
463-6286 [email protected]

STANDING COMMITTEES MTG DATE/TIME LOCATION MAILING ADDRESS/CONTACT COMMITTEE FUNCTION ASSIGNED TO PRINCIPAL STAFF SUPPORT Diversity and Equity TBD Virtual Meeting Room (link to be created) Civic Center 300 Seminary Ave. Ukiah, CA 95482 Improve diversity and equity in the City’s workforce and municipal services Orozco/Criss Traci Boyl, City Manager's Office Management Analyst; 467-5720; [email protected] Fire Executive Committee
2nd Tue, every other month beginning in January; 5:00 p.m.

Ukiah Valley Conference Center,200 S. School Street Ukiah, CA Civic Center300 Seminary Ave.Ukiah, CA 95482 [email protected] Per the recently adopted agreement between the City of Ukiah and the Ukiah Valley Fire Protection District Orozco/SherAlternates: Criss
Doug Hutchison, Fire Chief; 463-6263; [email protected] Countywide Oversight Board to the RDA Successor Agencies 4th Thursday of January, 4:00 p.m.; meets annually
Ukiah Valley Conference Center,200 S. School Street Ukiah, CA City of UkiahATTN: City Clerk300 Seminary Ave.Ukiah, CA 95482 Oversee and direct the Successor Agencies of the former redevelopment agencies Crane Dan Buffalo, Director of Finance; 463‐6220 [email protected] Lawler, City Clerk; 463‐6217, [email protected] Water Executive Committee(Ukiah Valley Water Authority) 1st Tue of each month
at 6:00 p.m.

Ukiah Valley Conference Center,200 S. School Street Ukiah, CA City of UkiahATTN: Sean White300 Seminary Ave.Ukiah, CA 95482 Oversight of UVWA; set annual budget for the combined water system; Manage rates and collect levies; modify existing water rights for the provision of water service; mediation and dispute resolution; Crane/Orozco Sean White, Director of Water Resources; 463-5712 [email protected] Updated: 9/4/2025

COMMITTEE ASSIGNED TO PRINCIPAL STAFF SUPPORT
Electric Grid Operational Improvements Crane/Orozco Cindy Sauers, Electric Utility Director; 463-6286 [email protected]
Trench Cut Policy Development Crane Tim Eriksen, Public Works Director/City Engineer; 463-6280 [email protected]
Advance Planning & Policy for Annexation
Applications Crane/Rodin
Craig Schlatter, Community Development Director
463-6219 [email protected]
UVSD/ City Relations
Ad hoc committee to address specific issues with the Ukiah Valley Sanitation District, including discussion of overall sewer system service delivery policies, operating policy revisions, potential revisions to the current Operating Agreement, and cost sharing
Crane/Orozco
Dan Buffalo, Director of Finance;
463‐6220 [email protected]
Sean White, Water Resources Director
463‐5712 [email protected]
Orr Street Bridge Corridor Rodin/Sher Tim Eriksen, Public Works Director/City Engineer; 463-6280 [email protected]
Complete Streets Rodin/Crane
Tim Eriksen, Public Works Director/City Engineer;
463-6280 [email protected]
Shannon Riley, Deputy City Manager
467-5793 [email protected]
Neil Davis, Community Services Director
467-5764 [email protected]
Special Districts (Water District Consolidation) Orozco/Crane Shannon Riley, Deputy City Manager 467‐5793 [email protected]
Corp Yard Planning Crane/Orozco Jason Benson, Senior Civil Engineer 463‐6284 [email protected]
Mendocino County Courthouse Project and Reuse Sher/Orozco Shannon Riley, Deputy City Manager 467‐5793 [email protected]
City's 150-Year Anniversary Planning Orozco/Rodin Shannon Riley, Deputy City Manager 467‐5793 [email protected]
Zoning Reform
Function is to explore creation of a new ministerial zoning permit and identify additional zoning streamlining and reform efforts to provide better and more consistent development outcomes
Crane/Orozco
Craig Schlatter, Community Development Director
463-6219 [email protected]
Community Health Needs Assessment (CHNA)
Steering Committee
assist in the creation of the 2025 CHNA Report for the
communities served by the three Adventist Health hospitals in Mendocino County. providing insight, identifying, gathering and analyzing the health needs of our community. Additionally Rodin/Sher
Jeremy Malin, NP
Director of Community Health Analytics
Adventist Health Howard Memorial
Adventist Health Ukiah Valley
Adventist Health Mendocino Coast
978-289-3330; [email protected]
Parks & Recreation Special District Exploration Rodin/Orozco Neil Davis, Community Services Director 467-5764 [email protected]
Downtown Zoning code Crane/Rodin
Craig Schlatter, Community Development Director
463-6219 [email protected]
Tourism Advisory Committee Rodin/Sher Shannon Riley, Deputy City Manager 467‐5793 [email protected]
Historic Preservation Code Sher/Criss Craig Schlatter, Community Development Director 463-6219 [email protected]
Fire Severity Rodin/Orozco Craig Schlatter, Community Development Director 463-6219 [email protected]
CalPERS Crane/Orozco Dan Buffalo, Director of Finance;
463‐6220 [email protected]
City Council Handbook Review and Update Sher Kristine Lawler, City Clerk 463‐6217; [email protected]

2025 AD HOC COMMITTEES
*Note: Changing the composition of an existing ad‐hoc among current councilmembers after work has begun presents potential Brown Act issues. Requests for fully filled ad‐hocs are represented on the draft, but staff does not recommend changes except to fill vacated assignments. The current requests on the sheet for fully composed ad‐hocs are primarily intended to convey interest in topics covered by these ad‐hoc committees for possible future consideration of new assignments.

Updated: 9/4/2025