Ukiah City Council
February 4, 2026

City Council
Regular Meeting
AGENDA
(to be held both at the physical and virtual locations below) Civic Center Council Chamber ♦ 300 Seminary Avenue ♦ Ukiah, CA 95482 To participate or view the virtual meeting, go to the following link: https://us06web.zoom.us/j/83206736913 Or you can call in using your telephone only:
• Call (toll free) 1-888-788-0099
• Enter the Access Code: 832 0673 6913
• To Raise Hand enter *9
• To Speak after being recognized: enter *6 to unmute yourself Alternatively, you may view the meeting (without participating) by clicking on the name of the meeting at www.cityofukiah.com/meetings.

February 4, 2026 - 5:15 PM

1. ROLL CALL

2. PLEDGE OF ALLEGIANCE

3. AB 2449 NOTIFICATIONS AND CONSIDERATIONS

4. PROCLAMATIONS/INTRODUCTIONS/PRESENTATIONS

5. PETITIONS AND COMMUNICATIONS

6. APPROVAL OF MINUTES

6.a. Approval of the Minutes for the January 21, 2026, Regular Meeting.

Recommended Action: Approve the minutes for the January 21, 2026, Regular Meeting.

Attachments:

1. 2026-01-21 Draft Minutes

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

8. CONSENT CALENDAR

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

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

8.a. Receive Report for the Public Spaces Commission 2026 Community Outreach Plan.

Recommended Action: Receive report for the Public Spaces Commission 2026 Community Outreach Plan.

Attachments:

1. PSC Outreach Plan 2026

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

10. COUNCIL REPORTS

11. CITY MANAGER/CITY CLERK REPORTS

12. PUBLIC HEARINGS (5:30 PM)

12.a. Conduct a Public Hearing to Consider Adoption of a Resolution Approving the Submittal of a Community Development Block Grant Application in Response to the 2025 State Community Development Block Grant Program Notice of Funding Availability; and Approve Corresponding Budget Amendments if Awarded Funding by the California Department of Housing and Community Development.

Recommended Action: Conduct a Public Hearing; select the Staff-recommended program and project for state grant submittal; adopt a Resolution approving the submittal of a Community Development Block Grant Application in response to the 2025 State Community Development Block Grant Program Notice of Funding Availability; and approve corresponding budget amendments if awarded funding for the application.

Attachments:

1. 2025-CDBG-NOFA

2. Local-Application-Public-Notice

3. Local-Application-Form

4. Appendix-F-Scoring-Matrix

5. Local-Application-Scoring-Matrix

6. Local-Applications-Received

7. Resolution

13. UNFINISHED BUSINESS

14. NEW BUSINESS

14.a. Introduce by Title Only an Ordinance Adding Chapter 9, Article 1, to Division 2 of the Ukiah City Code, Entitled "Right to Industry."
Recommended Action: Introduce by title only an ordinance adding Chapter 9, Article 1, to Division 2 of the Ukiah City Code, entitled "Right to Industry." Attachments:

1. Ordinance Summary & Mendocino County Right to Industry Ordinance

2. Draft Ordinance

3. Right to Industry Maps - Ukiah

14.b. Adoption of a Resolution Approving a Zero Tax Share Agreement Between the City of Ukiah and the County of Mendocino for the Ukiah Corporation Yard Annexation (1 Carousel Lane), Local Agency Formation Commission (LAFCo) File No. A-2025-06.

Recommended Action: Adopt a resolution approving a Zero Tax Sharing Agreement between the City of Ukiah and the County of Mendocino for the Ukiah Corporation Yard Annexation (1 Carousel Lane), LAFCo File No. A-2025-06.

Attachments:

1. 1 Carousel Lane - Tax Share Agreement - LAFCo A-2025-06)

2. Draft Resolution

14.c. Consideration of Rejection of Low Bid from Cimarron and Award Bid to Perennial Energy, LLC in the Amount of $418,394.61 for the Landfill Gas Ground Flare Station.

Recommended Action: Reject low bid from Cimarron and award bid to Perennial Energy, LLC in the amount of $418,394.61 for the Landfill Gas Ground Flare Station.

Attachments:

1. Bid Tabulation RFB E41141

2. Cimarron Energy Bid

3. Perennial Energy Bid

14.d. Consider Adoption of Resolution Adopting a 2026 Advocacy Platform to Serve as Guidelines for Local, State, and Federal Legislative Matters.

Recommended Action: Adopt resolution adopting a 2026 Advocacy Platform to serve as guidelines for local, state, and federal legislative, administrative, regulatory, and court matters.

Attachments:

1. 2026 Advocacy Platform Draft no Reso_redlined_att 1

2. Advocacy Platform and Resolution_2026_clean draft_att 2

3. 2025-26 League of CA Cities Priorities

14.e. Receive and File Second Quarter Financial Report and Receive Mid-Year Budget Presentation.

Recommended Action: Receive and file Second Quarter Financial Report (preliminary unaudited quarter-end results).

Attachments: None

14.f. Review and Update the Ukiah City Council Strategic Plan.

Recommended Action: Review the Ukiah City Council Strategic Plan and provide direction as may be warranted to update the document.

Attachments:

1. Redlined Version FY27 Council Strategic Plan_format changes

14.g. Annual Review, Discussion, and Appointments Regarding 2026 Council Assignments; and Consideration of Disbandment and Modification to City Council Committees and Ad Hocs/Standing Committees.

Recommended Action: 1) Receive report(s); 2) Discuss the Mayor's recommended assignments, making any possible appointments or re-assignments; 3) Consider the possible continuation, disbandment, and addition of City Council Ad Hoc and/or committees; and 4) Direct the City Clerk to finalize and attach the 2026 Council Assignments and Ad Hoc/Standing Committees List to the February 4, 2026, Minutes.

Attachments:

1. 2026 Draft Council Special Assignments & Ad Hocs

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

15.a. Conference with Legal Counsel – Anticipated Litigation (Government Code Section 54956.9(d)(4))
Initiation of litigation (2 cases)

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

15.c. Conference with Legal Counsel – Existing Litigation (Government Code Section 54956.9(d)(1))
Name of case: Vichy Springs Resort, Inc v. City of Ukiah, et al.; Case No. 24-cv-07106-JSC

15.d. Conference with Real Property Negotiators
(Cal. Gov't Code Section 54956.8)
Property: APN Nos: 151 Laws Ave, Ukiah, CA, 95482; APN 003-420-47 Negotiators: Sage Sangiacomo, City Manager; Dan Buffalo, Finance Director; Jared Walker, Water Resources Director
Negotiating Parties: Willow County Water District Board, Ukiah City Council Under Negotiation: Property Acquisition, Price & Terms of Payment

15.e. Conference Involving a Joint Powers Agency (Inland Water and Power Commission) City representative on IWPC Board (Mari Rodin)
Discussion will concern: (Conference with Real Property Negotiators (Gov’t Code §54956.8) Property: PG&E Potter Valley Project;
Agency Negotiators: Scott Shapiro, Janet Pauli.

Negotiating Parties: IWPC and PG&E
Under Negotiation: Price and Terms

15.f. Conference with Real Property Negotiators
(Cal. Gov't Code Section 54956.8)
Property: APN Nos: 184-080-37;184-080-36; 184-090-01; 184-090-07; 184-090-06; 184-100-04 Negotiator: Sage Sangiacomo, City Manager
Negotiating Parties: Henry's Original
Under Negotiation: Price & Terms of Payment

15.g. Conference with Labor Negotiator (54957.6)
Agency Designated Representative: Sage Sangiacomo, City Manager Employee Organizations: All bargaining units
Unrepresented Employee: Police Chief

15.h. Public Employment (City Attorney)
(Cal. Gov. Code § 54957(b)(1))

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

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

Araceli Sandoval, Deputy City Clerk
Dated: 01/30/26

AGENDA ITEM 6a

CITY OF UKIAH

CITY COUNCIL MINUTES
Regular Meeting

CIVIC CENTER COUNCIL CHAMBERS
300 Seminary Avenue, Ukiah, CA 95482
Virtual Meeting Link: https://us06web.zoom.us/j/83075964263 January 21, 2026
5:15 p.m.

1. ROLL CALL
Ukiah City Council met at a Regular Meeting on January 21, 2026, having been legally noticed on January 16, 2026. The meeting was held in person and virtually at the following link:
https://us06web.zoom.us/j/83075964263. Vice Mayor Orozco called the meeting to order at 5:16 p.m. Roll was taken with the following Councilmembers Present: Mari Rodin, Heather Criss, and Juan V. Orozco. Councilmembers Absent by Prearrangement: Douglas F. Crane and Susan Sher. Staff Present: Sage Sangiacomo, City Manager; David Rapport, City Attorney; and Araceli Sandoval, Deputy City Clerk.

VICE MAYOR OROZCO PRESIDING.

2. PLEDGE OF ALLEGIANCE
The Pledge of Allegiance was led by Councilmember Criss.

3. AB 2449 NOTIFICATIONS AND CONSIDERATIONS

4. PROCLAMATIONS/INTRODUCTIONS/PRESENTATIONS

5. PETITIONS AND COMMUNICATIONS
Deputy City Clerk, Araceli Sandoval, stated that all communications had been distributed.

6. APPROVAL OF MINUTES
a. Approval of the Minutes for the December 17, 2025, Regular Meeting.

Motion/Second: Criss/Rodin to approve minutes of December 17, 2025, a regular meeting, as submitted. Motion carried by the following roll call votes: AYES: Rodin, Criss, and Orozco. NOES:

None. ABSENT: Crane and Sher. ABSTAIN: None.

7. RIGHT TO APPEAL DECISION

8. CONSENT CALENDAR
a. Report of Disbursements for the Month of November 2025 – Finance. b. Report of Disbursements for the Month of December 2025 – Finance. c. Adoption of Resolution (2026-01) Approving the City of Ukiah's Qualified Contractors List for 2026 – City Clerk.
d. Notification of Purchase (P.O. 48927) of Tablet Command Software in the Amount of $40,450 for the Annual Renewal and Service Expansion – Fire.

City Council Minutes for January 21, 2026, Continued:

e. Approval of Contract Amendment (1415-197-A13) with Van Lant & Fankhanel, LLP, in the Amount of $189,955 for Auditing Services through Fiscal Year 2029/30 – Finance. f. Consideration and Possible Approval of Cancellations for the August 5, 2026, December 2, 2026, and January 6, 2027, Regular Meetings, with the Option for the Mayor and/or City Manager to Call for a Special Meeting on an Alternate Date if Time-Sensitive Business Arises – City Clerk.
g. Approval of Budget Amendment in the Amount of $9,960 for Structural Engineering Services from Dave Jankovsky and Fundraising Consulting Services from Phil Kohlmetz for the Grace Hudson Museum Sun House – Community Services.
h. Approval of Installment Purchase Agreement (2526-161) with Ukiah Valley Sanitation District and Authorize the City Manager to Execute the Agreement and Any Related Documents Necessary to Effectuate the Transaction – Finance.
i. Consideration of Award of Bid (2526-162) to C.V. Larsen in the Amount of $374,596.39 for the Corporation Yard Environmental Well Abandonment, Specification 25-06, Plus a 10% Contingency; and Approve a Corresponding Budget Amendment – Public Works. j. Notification of Contract (2526-163) with EBA Engineering for Environmental Engineering Services Related to the Corporation Yard Environmental Well Abandonment Project, Specification 25-06, and Approval of a Corresponding Budget Amendment – Public Works. k. Consideration of Approval of Notice of Completion for the Great Redwood Trail Phase 4, Specification 21-02; Approval of Release of Final Payment of the 5% Retention to Granite Construction Company; and Direction to the City Clerk to File the Notice of Completion with the County Recorder – Public Works.
l. Approval of Professional Services Contract (2526-164) with EBA Engineering in the Amount of $75,811 for Environmental Monitoring and Reporting Services for the Ukiah Landfill and Approval of Corresponding Budget Amendment – Public Works. m. Approval of Contract Amendment (1516-143-A9) with Ukiah Waste Solutions for Biosolids Removal at the Wastewater Treatment Plant – Public Works. n. Notification of a Purchase from Pelham Paramedic School for Paramedic Training of Five Ukiah Valley Fire Authority (UVFA) Team Members in the Amount of $106,500 – Fire. o. Review and Accept the Annual Development Impact Fee Report for Fiscal Year 2024-25 – Finance.

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

Crane and Sher. ABSTAIN: None.

9. AUDIENCE COMMENTS ON NON-AGENDA ITEMS
No public comments were received.

10. COUNCIL REPORTS
Presenter: Councilmember Rodin (presented during City Manager’s reports).

11. CITY MANAGER/CITY CLERK REPORTS
Presenters: Sage Sangiacomo, City Manager; and

City Council Minutes for January 21, 2026, Continued:

• Construction Update – Tim Eriksen, Public Works Director / City Engineer. • Multi-Jurisdictional Hazard Mitigation Plan Update – Traci Boyl, Senior Management Analyst.

Note: Councilmember Rodin added a Council Report.

12. PUBLIC HEARINGS (5:30 PM)
a. Consideration of Approval of a Demolition Permit for Two Structures Over 50 Years Old at 101 and 105 South Main Street; Permit No. PA25-000021, File No. 25-000926.

Note: City Attorney, David Rapport, clarified that Vice Mayor Orozco’s employment with the Mendocino College is not a conflict of interest under the Fair Political Practices Act.

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

PUBLIC HEARING OPENED AT 5:52 P.M.

Public Comment: Julie McGovern, Tim Karas, Marcia Lazaro, Ted Mayfield, and Pinky Kushner.

PUBLIC HEARING CLOSED AT 6:03 P.M.

Motion/Second: Criss/Rodin to adopt the resolution (2026-03) approving the Demolition Permit for two structures over 50 years old at 101 and 105 South Main Street; Permit No. PA25-000021, File No. 25-000926. Motion carried by the following roll call votes: AYES: Rodin, Criss, and Orozco.

NOES: None. ABSENT: Crane and Sher. ABSTAIN: None.

RECESS: 6:17 P.M. – 6:23 P.M.

13. UNFINISHED BUSINESS
a. Presentation of City's Audited Annual Comprehensive Financial Report (ACFR) and Audit Reports for the Year Ended June 30, 2025.

Presenter: Dan Buffalo, Finance Director.

No public comment was received.

Motion/Second: Criss/Rodin to receive and file Annual Comprehensive Financial Report (ACFR).

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

ABSENT: Crane and Sher. ABSTAIN: None.

14. NEW BUSINESS
a. Consideration of Adoption of a Resolution Authorizing an Exception to the 180-Day CalPERS Waiting Period, and Authorizing the City’s Retired Water Resources Director to Work on a Temporary Basis as an Extra Help Employee in Accordance with Government Code Sections 7522.56 and 21224.

Presenter: Sage Sangiacomo, City Manager.

No public comment was received.

Motion/Second: Rodin/Criss to adopt the resolution (2026-02) authorizing an exception to the 180- day waiting period and authorizing the employment of retired annuitant Sean White as an Extra Help employee pursuant to Government Code sections 7522.56 and 21224; and to authorize the City Manager to execute the associated Extra Help Employment Agreement (2526-165), ensuring continued compliance with CalPERS requirements, including the 960-hour annual limit. Motion

City Council Minutes for January 21, 2026, Continued:

carried by the following roll call votes: AYES: Rodin, Criss, and Orozco. NOES: None. ABSENT:

Crane and Sher. ABSTAIN: None.
b. Receive Updates on City Council Committee and Ad Hoc Assignments, and, if Necessary, Consider Modifications to Assignments and/or the Creation/Elimination of Ad Hoc(s); with Possible Changes to Airport Infill Policy Ad Hoc.

Presenter: Sage Sangiacomo, City Manager.

No public comment was received.

Motion/Second: Rodin/Orozco to approve the name change of the Airport Infill Policy Ad Hoc to the Airport Policy Ad Hoc along with the identified scope modifications recommended by Staff. Motion carried by the following roll call votes: AYES: Rodin, Criss, and Orozco. NOES: None. ABSENT:

Crane and Sher. ABSTAIN: None.

15. CLOSED SESSION
a. Conference with Legal Counsel – Anticipated Litigation (Government Code Section 54956.9(d)(4))
Initiation of litigation (2 cases)
b. Conference with Legal Counsel – Existing Litigation
(Government Code Section 54956.9(d)(1))
Name of case: Vichy Springs Resort v. City of Ukiah, Et Al; Case No. SCUK-CVPT-2018- 70200
c. Conference with Legal Counsel – Existing Litigation
(Government Code Section 54956.9(d)(1))
Name of case: Vichy Springs Resort, Inc v. City of Ukiah, et al.; Case No. 24-cv-07106-JSC d. Conference with Real Property Negotiators
(Cal. Gov't Code Section 54956.8)
Property address or APN Nos: 151 Laws Ave, Ukiah, CA, 95482; APN 003-420-47 Negotiators: Sage Sangiacomo, City Manager; Dan Buffalo, Finance Director; Jared Walker, Water Resources Director
Negotiating Parties: Willow County Water District Board, Ukiah City Council Under Negotiation: Property Acquisition, Price & Terms of Payment e. Conference Involving a Joint Powers Agency (Inland Water and Power Commission) City representative on IWPC Board (Mari Rodin)
Discussion will concern: (Conference with Real Property Negotiators (Gov’t Code §54956.8) Property: PG&E Potter Valley Project;
Agency Negotiators: Scott Shapiro, Janet Pauli.

Negotiating Parties: IWPC and PG&E
Under Negotiation: Price and Terms)
f. Conference with Real Property Negotiators
(Cal. Gov't Code Section 54956.8)
Property: APN Nos: 184-080-37;184-080-36; 184-090-01; 184-090-07; 184-090-06; 184-100-04 Negotiator: Sage Sangiacomo, City Manager
Negotiating Parties: Henry's Original
Under Negotiation: Price & Terms of Payment

City Council Minutes for January 21, 2026, Continued:

g. Conference with Labor Negotiator (54957.6)
Agency Designated Representative: Sage Sangiacomo, City Manager Employee Organizations: All bargaining units
Unrepresented Employee: Police Chief

16. ADJOURNMENT
There being no further business, the meeting adjourned at 6:45 p.m. ________________________________
Araceli Sandoval
Deputy City Clerk

Agenda Item No: 8.a.

MEETING DATE/TIME: 2/4/2026

ITEM NO: 2026-114

AGENDA SUMMARY REPORT
SUBJECT: Receive Report for the Public Spaces Commission 2026 Community Outreach Plan.

DEPARTMENT: Community Services PREPARED BY: Jake Burgess, Community Services Director PRESENTER: Jake Burgess, Community Services Director
ATTACHMENTS:

1. PSC Outreach Plan 2026
Summary: Council will receive a report for the Public Spaces Commission 2026 Community Outreach Plan.

Background: The Public Spaces Commission (PSC) was formed in late 2021 as a merger of the Parks Recreation and Golf Commission (PRGC) and the Paths, Open Space and Creeks Commission (POSC). The Public Spaces Commission charter outlined in Division 1, Chapter 4 of the Ukiah City Code defines the duties and powers of the Public Spaces Commission. Item D of the Duties and Powers section states the work of the Commission “shall be guided by the Community Outreach Plan” and that the Commission “shall prepare and annually update a Community Outreach Plan."
Discussion: Community Outreach plans for the PSC were adopted for 2022, 2023, 2024, and 2025 with few changes from the original document. As the Public Spaces Commission (PSC) enters its fifth year, the Commission and Staff have scheduled the Community Outreach plan for 2026. The Duties and Powers section of the Commission’s charter requires a minimum of six regular meetings per year. No changes to the plan are required, but may be made at the PSC’s discretion.

The Public Spaces Commission has been meeting regularly since its inception in 2021. In 2025, all scheduled meetings were appropriately noticed and prepared. Staff presented between three and five staff reports per meeting on a wide variety of subjects with good public attendance and engagement. Of particular note, the November 18th Community Forum held at the Conference Center featured over 20 attendees and an engaging discourse on the future of parks in our community.

To ensure community opportunities for engagement and input, the Recreation team makes frequent Facebook posts and sends frequent emails regarding upcoming events and park improvements.

The information in this report was discussed at the Public Spaces Commission on January 13, 2026, and the updated Community Outreach Plan (Attachment 1) decided upon by the Commissioners. The meetings are scheduled for odd numbered months with Community Forums scheduled for May and November.

Staff recommends adopting the attached PSC approved 2026 Community Outreach Plan for use in the upcoming year.

Recommended Action: Receive report for the Public Spaces Commission 2026 Community Outreach Plan.

BUDGET AMENDMENT REQUIRED: No
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: Kristine Lawler, City Clerk.

STRATEGIC PLAN (SP): N/A
CLIMATE INITIATIVES (CI): N/A
GENERAL PLAN ELEMENTS (GP): N/A

1 Attachment 1
Public Spaces Commission Community Outreach Plan - 2026 The Mission of the Public Spaces Commission (PSC) is to foster a culture of informed community participation in the planning and implementation of the wise use of public spaces. The five-member PSC shall have the power and duty to solicit, collate, and analyze public input on the wise use of public spaces and; provide recommendations and advice to both staff and the City Council based on said input. Additionally, PSC members in collaboration with staff may choose to form “working groups” to explore and formulate advice or recommendations on specific areas regarding the wise use of public spaces.

In support of the PSC mission, City staff will;

1. Convene Biannual Community Input Forums

2. Convene Public Input Forum planning meetings four times per year.

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

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

Public Spaces Biannual Community Input Forums
The Public Spaces Biannual Community Input Forums will be held as hybrid in-person and online events. Meetings will be planned to cover two to four prearranged topics with time available for discussion of an unplanned topic at attendee consensus request. The PSC will work with staff to decide upon topics and presenters. City staff will prepare presentations that will include Q&A sessions after the presentations. Forums will be recorded and available on the City website.

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

Working Groups
PSC members will be encouraged to form Working Groups both among themselves as well as with members of the public to pursue areas of interest and to the benefit of effective City management. All working groups should have a City Council member of staff “sponsor” to ensure a collaborative approach. 2026 Meeting Schedule:

January 13 – Public Input and Planning Meeting (Civic Center Annex) March 10 – Public Input and Planning Meeting (Civic Center Annex) May 12 – Community Input Forum (Ukiah Valley Conference Center) July 14 - Public Input and Planning Meeting (Civic Center Annex) September 8 - Public Input and Planning Meeting (Civic Center Annex) November 10 - Community Input Forum (Ukiah Valley Conference Center)

Agenda Item No: 12.a.

MEETING DATE/TIME: 2/4/2026

ITEM NO: 2026-58

AGENDA SUMMARY REPORT
SUBJECT: Conduct a Public Hearing to Consider Adoption of a Resolution Approving the Submittal of a Community Development Block Grant Application in Response to the 2025 State Community Development Block Grant Program Notice of Funding Availability; and Approve Corresponding Budget Amendments if Awarded Funding by the California Department of Housing and Community Development.

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

1. 2025-CDBG-NOFA

2. Local-Application-Public-Notice

3. Local-Application-Form

4. Appendix-F-Scoring-Matrix

5. Local-Application-Scoring-Matrix

6. Local-Applications-Received

7. Resolution
Summary: Council is requested to conduct a Public Hearing to consider adoption of a Resolution approving the submittal of a Community Development Block Grant Application in response to the 2025 State Community Development Block Grant Program Notice of Funding Availability; and approve corresponding budget amendments if awarded funding for the application.

Background: On September 30, 2025, the California Department of Housing and Community Development (HCD) released a 2025 Notice of Funding Availability (NOFA) for approximately $27 million in federal funds for the state Community Development Block Grant (CDBG) Program (Attachment 1). The objectives of the CDBG program are to develop viable communities through the provision of decent affordable housing and a suitable living environment, and to expand economic opportunities, principally for the benefit of Low- and ModerateIncome (LMI) persons, families, households, and neighborhoods.

State CDBG Citizen Participation regulations require a design phase public hearing to initiate the annual CDBG funding cycle. Staff conducted a design phase public hearing and local application workshop on June 11, 2025, in anticipation of the release of the 2025 NOFA.

City of Ukiah Local Application Process
The City has developed a local application process to inform stakeholders and potential applicants of the CDBG NOFA and to establish a transparent and fair method by which to select local applicants for a possible City CDBG application submitted to the State. On May 10, 2025, the City published a public notice in the Ukiah Daily Journal (Attachment 2) announcing the local application workshop public meeting and describing the CDBG NOFA process. Staff also informed local stakeholders by email. During the June 11, 2025, public meeting, Staff met with described the NOFA process and the City's local application process. Staff also distributed the City's Local Application (Attachment 3), which mirrors application threshold requirements in the State CDBG application.

Local applications were due by July 2, 2025, and four applications were received by the deadline. The four applications were:
• A Multi-Unit Affordable Housing Development Rehabilitation Project from DANCO (CDBG Matrix Code 14F)
• An Urgent Care Center Construction Project from MCHC (CDBG Matrix Code 03P) • A Multi-Unit Affordable Housing Development Rehabilitation Project from RCHDC (CDBG Matrix Code 14F)
• A Business Assistance Program from the City of Ukiah Community Development Department (CDBG Matrix Code 18A), including a Facade Improvement Program The submitted local applications for the two multi-unit Affordable Housing Development Rehabilitation Projects and the Business Assistance Program meet CDBG eligibility requirements. After communication with state (HCD) CDBG staff, HCD CDBG staff made it clear that the Urgent Care Center Construction Project would not meet state CDBG program eligibility requirements.

The 2025 CDBG NOFA allows local jurisdictions to apply for up to $3.6 million in funds for up to three subapplications during the 2025 NOFA cycle:
• 1 Project Application for up to $3.3 million
• 1 Program Application for up to $1.5 million
• 1 Public Service or Planning Application for up to $300,000 Neither a Public Service Application nor a Planning Location Application was received this year in the local application process, which means the City may submit one Project Application for up to $3.3 million, one Program Application for up to $1.5 million, or a combination of the two for up to $3.6 million.

Discussion: Staff reviewed the three eligible Local Applications based on the Scoring Matrix in Appendix F of the 2025 NOFA (Attachment 4). Based on the information provided in the local applications and the criteria in Appendix F, each of the three applications scored 146.25 points. Please see Attachment 5, CDBG Local Application Scoring Matrix, for the 10 scoring criteria that make up the totals. In the event of a tie, Appendix F indicates that the application submitted first will be awarded.

The application for a City of Ukiah Business Assistance Program, which will include a Facade Imrovement Program, was received from Staff on June 20, 2025. The application for the Orchard Village/Manor Apartments Multi-Unit Residential Rehabilitation Project was received from Rural Communities Housing Development Corporation at 10:48 AM on July 2, 2025. The application for a Summercreek Village Apartments Multi-Unit Residential Rehabilitation Project was received from Danco Communities at 11:38 AM on July 2, 2025. (See Attachment 6 Local Applications Received).

Staff Recommendation to Council
Based on the tiebreaker direction in Appendix F of the CDBG NOFA, Staff recommends that Council select the following program and project to be submitted as part of the City’s 2025 CDBG NOFA application:

City of Ukiah Business Assistance Program (with Facade Improvement Program) – up to $1.5 million Orchard Village/Manor Apartments Multi-Unit Residential Rehabilitation Project – up to $2.1 million TOTAL: up to $3.6 million
Because DANCO's Summercreek Village Apartments Multi-Unit Residential Rehabilitation project is also potentially eligible for state CDBG funding, Staff recommends Council select DANCO's project as a backup alternate project to Orchard Village/Manor.

The following is requested and is included in the attached Resolution (Attachment 7):

Business Assistance Program (matrix code 18A) – $1,500,000 Multi-Unit Residential Rehabilitation Project (matrix code 14B) – $2,100,000 CDBG Program Income – $0
To proceed with this recommendation, Staff requests that Council 1) conduct a Public Hearing; 2) select the Staff-recommended program and project for state grant submittal; 3) adopt the Resolution in Attachment 7; and 4) approve any corresponding budget amendments if awarded funding for the application.

Recommended Action: Conduct a Public Hearing; select the Staff-recommended program and project for state grant submittal; adopt a Resolution approving the submittal of a Community Development Block Grant Application in response to the 2025 State Community Development Block Grant Program Notice of Funding Availability; and approve corresponding budget amendments if awarded funding for the application.

BUDGET AMENDMENT REQUIRED: N/A
CURRENT BUDGET AMOUNT: N/A
PROPOSED BUDGET AMOUNT: $3.6 million in state CDBG grant funds if awarded FINANCING SOURCE: future state CDBG grant funds
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; SP 4B - Develop and preserve the historic downtown as a regional center of civic and economic activity CLIMATE INITIATIVES (CI):

GENERAL PLAN ELEMENTS (GP): GP-A8 - Housing Element (2019-2027), Goal H-1, and Policy 1-1 to support Goal H-1; GP-A2 - Economic Development Element, Goal 1.3 (Public/Private Partnerships) and Goal

4.2 (Downtown).

STATE OF CALIFORNIA - BUSINESS, CONSUMER SERVICES AND HOUSING AGENCY GAVIN NEWSOM, Governor

DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT

DIVISION OF FEDERAL FINANCIAL ASSISTANCE
May Lee State Office Complex
651 Bannon Street
Sacramento, CA 95811
(916) 263-2771
www.hcd.ca.gov
California Department of Housing and Community Development 2025 Community Development Block Grant Program NOFA 1
December 15, 2025
MEMORANDUM FOR: All Potential Applicants
FROM: Jenny Cho, Deputy Director
Division of Federal Financial Assistance
SUBJECT: 2025 Community Development Block Grant Program Notice of Funding Availability – Amendment #1
The California Department of Housing and Community Development (Department) is announcing the release of an amendment to the Community Development Block Grant (CDBG) 2025 Notice of Funding Availability (NOFA) issued on September 30, 2025 for approximately $27 million in federal funds for the Community Development Block Grant (CDBG) program. If additional resources become available either through disencumbrances of prior year funding or through the availability of future year funding, the Department has the sole discretion to fund eligible applications on a competitive basis. This Amendment moves the application window from December 1, 2025 – January 30, 2026 to February 2, 2026 – April 3, 2026.

Funding for this NOFA is available to the state from the United States Department of Housing and Urban Development (HUD), pursuant to the Housing and Community Development Act of 1974, as amended, and 24 Code of Federal Regulation (C.F.R.) Part 570 Subpart I “State Community Development Block Grant Program.” These regulations require the state to make funds available to the state’s non-entitlement Units of General Local Government (UGLGs). Units of General Local Government are defined by HUD as political subdivisions of the state, which in California are towns, cities, and counties. Only non-federally recognized Tribes can receive funding through applications submitted by non-entitlement Units of General Local Government. No direct funding from the Department can be provided to Tribes, Tribally-Designated Housing Entities, or nonprofits.

Applicants are encouraged to set-up profiles in the eCivis Portal at eCivis Portal | Login as early as possible. Profile set-up instructions and other technical assistance can be found in the eCivis Grants Network External User Manual found on the Department’s CDBG webpage under the “Resources” tab.

ATTACHMENT 1

STATE OF CALIFORNIA - BUSINESS, CONSUMER SERVICES AND HOUSING AGENCY GAVIN NEWSOM, Governor

DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT

DIVISION OF FEDERAL FINANCIAL ASSISTANCE
May Lee State Office Complex
651 Bannon Street
Sacramento, CA 95811
(916) 263-2771
www.hcd.ca.gov
California Department of Housing and Community Development 2025 Community Development Block Grant Program NOFA 2
Applicants are encouraged to begin the application process early to ensure successful submission before the application deadline. If you have issues logging into the portal or have questions on how to complete the online application, please contact the Department at [email protected].

To receive CDBG program NOFA FAQs, emails, and other information and updates, please sign up for emails and check the “Federal Programs” box. If you have any questions, please submit them to [email protected].

All activities and proposed funding in this NOFA are subject to availability of funds and continuing HUD and legislative and fiscal authority.

Attachments

California Department of Housing and Community Development 2025 Community Development Block Grant Program NOFA 1
Community Development Block Grant Program
2025 Notice of Funding Availability
Gavin Newsom, Governor
State of California
Tomiquia Moss, Secretary
Business, Consumer Services and Housing Agency
Gustavo Velasquez, Director
California Department of Housing and Community Development Division of Financial Assistance, Federal Programs Branch, Community Development Block Grant Program
651 Bannon Street, 8th Floor, Sacramento, CA 95811
Email: [email protected]
September 30, 2025
Amended December 15, 2025

California Department of Housing and Community Development 2025 Community Development Block Grant Program NOFA 2
Table of Contents
Table of Contents ............................................................................................................ 2 I. Overview................................................................................................................... 5 A. Notice of Funding Availability ...................................................................... 5 B. Estimated Timeline...................................................................................... 5 C. Insufficient Demand .................................................................................... 6 D. What’s new in this NOFA?........................................................................... 6 E. Authorizing Legislation ................................................................................ 7 II. Allocation and Funding ............................................................................................. 8 A. Definitions ................................................................................................... 9 B. Limits for Administration and Planning ........................................................ 9 C. Conditions ................................................................................................. 10 III. Program Requirements .......................................................................................... 10 A. Eligible Applicants ..................................................................................... 10 B. Non-Entitlement Status ............................................................................. 11 C. Housing Element Compliance ................................................................... 11 D. Growth Control Limitations ........................................................................ 12 E. Eligible Activities ....................................................................................... 12 F. Application Limits ...................................................................................... 12 G. Activity Limits ............................................................................................ 14 H. Additional Requirements ........................................................................... 14 IV. Application Requirements....................................................................................... 15 A. National Objectives ................................................................................... 15 B. Milestones ................................................................................................. 15 C. Public Participation.................................................................................... 17 V. Application Threshold and Initial Requirements...................................................... 17 A. Single Audit ............................................................................................... 17 B. Site Control ............................................................................................... 17 C. Statement of Assurances (Appendix D) .................................................... 18 D. Resolution ................................................................................................. 19 E. TIN ............................................................................................................ 20

California Department of Housing and Community Development 2025 Community Development Block Grant Program NOFA 3
F. Budget....................................................................................................... 20 G. Sources and Uses Chart ........................................................................... 20 H. System for Award Management (SAM) ..................................................... 20 I. State Objectives ........................................................................................ 21 J. National Environmental Policy Act of 1969 (NEPA) .................................. 21 K. Construction Projects ................................................................................ 22 L. Economic Development (ED) Programs Only ........................................... 22 M. Planning Related to Another Activity Only................................................. 23 N. 50 Percent Rule ........................................................................................ 24 VI. Application and Activity Requirements ................................................................... 25 A. Federal Cross-Cutting Requirements........................................................ 25 B. Application Verification.............................................................................. 25 C. Timely Submittal........................................................................................ 25 D. Gap Funding/“But-For” .............................................................................. 25 E. Good Standing .......................................................................................... 26 F. Homelessness Assistance ........................................................................ 26 G. Readiness ................................................................................................. 26 H. Waivers ..................................................................................................... 27 VII. Application Submission .......................................................................................... 27 A. Workshops ................................................................................................ 27 B. Submission Process.................................................................................. 27 C. Application Submission ............................................................................. 28 D. Applicant Responsibility ............................................................................ 29 E. Disclosure of Application ........................................................................... 29 VIII.Application Review ................................................................................................. 29 A. Review Process ........................................................................................ 30 B. Set-Aside for Applicants Not Awarded CDBG Funds in the Last Five Years .................................................................................................................. 30 C. Scoring ...................................................................................................... 30 D. Corrections................................................................................................ 30 IX. Appeal Criteria and Process ................................................................................... 31

California Department of Housing and Community Development 2025 Community Development Block Grant Program NOFA 4
A. Competitive Application Appeals............................................................... 31 X. Award Recommendations....................................................................................... 32 XI. Awards Announcement and Grant Implementation ................................................ 32 A. Awards Announcements ........................................................................... 32 B. Standard Agreements ............................................................................... 32 XII. Federal Program Requirements ............................................................................. 33 A. Federal Cross-Cutting Requirements........................................................ 33 B. Relocation Plan Requirements.................................................................. 34 C. Procurement Requirements ...................................................................... 34 D. False, Fictitious or Fraudulent Claims ....................................................... 35 E. Whistleblower Protection Acts................................................................... 36 F. The California Whistleblower Protection Act ............................................. 37 XIII.LIST OF APPENDICES.......................................................................................... 39

California Department of Housing and Community Development 2025 Community Development Block Grant Program NOFA 5
I. Overview
A. Notice of Funding Availability
The California Department of Housing and Community Development (Department) announces the availability of approximately $27 million in funding available through the federal Small Cities Community Development Block Grant Program (CDBG) for the 2025 funding year. If additional resources become available either through disencumbrances of prior year funding or through the availability of future year funding, the Department has the sole discretion to fund eligible applications on a competitive basis.

The objectives of the CDBG program are to develop viable communities by the provision of decent affordable housing, a suitable living environment, and to expand economic opportunities, principally for the benefit of Low- and Moderate-Income (LMI) persons, families, households, and neighborhoods.

All applications will be reviewed for completeness and compliance with state and federal requirements. Only complete and compliant applications will be eligible for application review, approval, and potential funding per 42 United States Code (U.S.C.) §5302(a), 24 Code of Federal Regulations (C.F.R.) Part 570, and the State CDBG Guidelines. All awards made and standard agreements entered into under this NOFA will be subject to the provisions in the Department’s grant agreement(s) with HUD and all applicable federal law.

B. Estimated Timeline
CDBG NOFA Releases September 30, 2025
Submission Portal Opening
Date
February 2, 2026, at 9AM PST
Application Deadline April 3, 2026, at 3PM PDT
Award Letters Signed September 2026
Standard Agreement
Execution On a rolling basis starting October 2026
Expenditure Deadline 2 years, 9 months from Standard
Agreement execution by the Department
Applications submitted before the application open date or after the respective

California Department of Housing and Community Development 2025 Community Development Block Grant Program NOFA 6
closing date or deadline will not be accepted. There will be no exceptions. The Department recommends Applicants plan to submit their application(s) well before the application deadline to provide opportunity for troubleshooting if needed.

Each application will be digitally time-stamped upon submittal. The digital time-stamp shall be conclusive proof of the filing date and time for the application being filed.

C. Insufficient Demand
If any identified set-aside is undersubscribed, set-aside funds shall be made available under the allocation for “Housing Programs, Economic Development Programs, and All Projects.” If this NOFA is undersubscribed, unawarded funds may be made available under a subsequent NOFA. If funds become disencumbered or additional funding resources become available, the additional available funds may be made available under this NOFA or any subsequent NOFAs, at the Department’s discretion. If disencumbered funds or additional available funds exceed applications, these funds may be made available under a subsequent NOFA.

D. What’s new in this NOFA?

1. A set-aside for applicants who haven’t been awarded CDBG funds in the past five NOFA cycles (2020-2024) has been established. Applicants will be allowed to rank from 1 to 3 their priority among planning, public service, project, or program. The highest prioritized qualifying selection will compete in the setaside. Additional applied for planning, public service, project or program will compete with all other applicants.

2. All applications will be eligible under a Competitive Application process, with certain submissions competing under defined set-asides. There is no Over-theCounter (OTC) Application. i) The following activity types are available:
a.Public Service and Planning
b.Programs
• Housing Programs
• Economic Development Programs (ED Programs)
c. Projects
• Public Facilities Projects
• Infrastructure Projects
• Housing Projects

California Department of Housing and Community Development 2025 Community Development Block Grant Program NOFA 7

3. All applications must meet the 50 Percent Rule as described in the CDBG Program Guidelines Section 202(a)(2), 50 Percent Rule.

4. Scoring system has been updated.

5. General updates for clearer instructions and definitions have been made.

E. Authorizing Legislation
Funding under this NOFA is made available pursuant to the Housing and Community Development Act of 1974. This NOFA should be read in conjunction with the following statutes, regulations, and guidelines that establish state and federal CDBG requirements. Relevant legal authorities include, but are not limited to, the following, as the same may be amended from time to time:
• 24 C.F.R. §570.480, et. seq., Federal CDBG Regulations • 24 C.F.R. Part 58, Environmental Review Procedures
• 2 C.F.R. Part 200, Uniform Grant Administration Requirements • Health & Safety Code (H.S.C.) §§50825-50834, State of California CDBG program
• CDBG Final Program Guidelines
• CDBG Grants Management Manual (CDBG GMM)
• 2025-2029 State of California Consolidated Plan
If there are changes to federal or state statutes, regulations, guidelines, or other laws governing the CDBG program, or if funding is modified or eliminated by Congress, HUD, the federal government, the Department, or the state Legislature, these changes may become effective immediately and apply to activities and funding under this NOFA.

Note: The Housing and Community Development Act of 1974 (HCDA) is codified as Title 42 U.S.C. §5301, et. seq. thus, those citations are interchangeable and cite the same statute language. For example, the citation of HCDA 105(a)(22) and 42 U.S.C. §5305(a)(22) are references to the same statute language. For the purposes of this NOFA, we will use the 42 U.S.C. §5301 citations for references to the federal statutes.

In administering this NOFA, if there is a conflict between the federal statutes or regulations and state statutes or guidelines, the federal statutes and regulations shall prevail. All activities in this NOFA are subject to availability of funds and continuing federal, HUD and California legislative and fiscal authority. The Department reserves the right, at its sole discretion and at any time, to rescind, suspend or amend this NOFA and any or all its provisions and the availability or amount of any funding described herein.

The Department will notify interested parties through listserv emails and by posting

California Department of Housing and Community Development 2025 Community Development Block Grant Program NOFA 8
notification on the Department website if the Department rescinds, suspends, or amends this NOFA. This NOFA is not a commitment of funds to any Activity or Applicant.

II. Allocation and Funding
Funds will be allocated in accordance with federal regulations found in 24 C.F.R. §570 and state statute, as found in H.S.C. §50827 et. seq. For more information, please reference the CDBG Guidelines, Section 200.

The table below include the estimated percentage of Funding Category Allocations for the 2025 NOFA:

Funding Category Allocation Percentage Estimated Dollar Amount Local Administration 7% $2,000,000.00
Public Service (24 C.F.R.
570.201(e)(1))
Planning (24 C.F.R. 570.483(b)(5))
≤15%
≤10%
$4,400,000.00
$2,900,000.00
Housing Programs, Economic
Development Programs, and All
Projects
34% $9,250,000
Set-aside for applicants who have
not been awarded CDBG funds in the
last 5 NOFA cycles (2020-2024)
(Limit one public service, planning,
program or project per applicant)
≤25% of total
NOFA
amount; to
fund a
maximum of 4
total awards,
whichever is
the lesser
amount
Up to $6,750,000.00

California Department of Housing and Community Development 2025 Community Development Block Grant Program NOFA 9
Colonias Set-Aside (Section 916 of
the National Affordable Housing Act)
Set-aside of
5% $1,480,000.00
Non-federally recognized Tribes SetAside (H.S.C. §50831) Set-aside of

1.25% $371,000.00
*Note: The amount of total funding available and the allocations of those funds are only estimates and are subject to change without notice.

A. Definitions
Except as otherwise defined herein, all defined terms have the meaning set forth in 42 U.S.C. §5302(a), 24 C.F.R. Part 570, and the State CDBG Guidelines.

B. Limits for Administration and Planning

1. Program Administration
The Department can use 3 percent of the total funding +$100,000 for administration costs.

2. General Administration (GA)
i) Applicants may request up to 7 percent of the total CDBG grant funding requested by that Applicant for General Administration (GA). For detailed information regarding General Administration costs, see Chapter 6: Financial Management of the current posted version of the CDBG GMM, as may be amended, which is found on the CDBG page of the Department’s website. ii) The calculation to determine the maximum allowable General Administration amount is the amount of Activity expenses plus Activity Delivery expenses, multiplied by 7 percent per application. Appendix G has been provided for ease of calculation.
iii) In general, there should be minimal GA costs. Staff time and/or work completed/costs incurred directly on a specific Activity should be reported as Activity Delivery Cost (ADC) whereas the overall management of the CDBG Program, such as NOFA webinars and Office Hours, should be reported as GA.
iv) For detailed information regarding ADC, see Chapter 6: Financial Management of the current posted version of the CDBG GMM, as may be amended, which is found on the CDBG page of the Department’s website.

California Department of Housing and Community Development 2025 Community Development Block Grant Program NOFA 10
v) GA should be requested in the Main Application for the aggregate amount of all Sub Applications.

3. GA for Program Income (PI) funds is 17 percent of the annual PI receipts for the most recently completed Department Program Year (e.g., for PY 2023, receipts PY 2022 (July 1, 2022 – June 30, 2023).

4. Applicants may elect to assign more funds to Activity costs and take less than the 7 percent (17 percent for Program Income) as their GA allocation.

5. For project budgets with both grant award and PI as funding sources, applications must identify how much GA will be from each source to ensure that GA stays within the appropriate program caps.

C. Conditions
Applicants and awardees acknowledge that the funding opportunities referenced in this NOFA, and all obligations of the Department herein, are expressly subject to and conditioned upon the ongoing availability of funds, as well as the continued federal and state authority of the Department to operate the CDBG program. In the event that funds are not available or the amount thereof is reduced or restricted, or the Department’s authority under the CDBG Program or Act, or such funding or authority to operate is in any way restricted, the Department shall have the option, at its sole and absolute discretion, to amend, rescind, suspend, or terminate this NOFA and any associated funding pursuant to the provision set forth immediately above.

This NOFA is not a commitment of funds to any Activity or Applicant and the submission of an application does not guarantee an award to an Applicant.

III. Program Requirements
All Program Requirements, Application Requirements, Application Threshold and Initial Requirements, and Application and Activity Requirements set forth in Sections III-VI must be met. Failure to timely satisfy all of the requirements will result in disqualification.

A. Eligible Applicants

1. Only non-entitlement Units of General Local Government such as cities, counties and municipalities are eligible to apply. Federally-recognized Tribes, non-federally recognized Tribes, and nonprofits may receive assistance only by entering into a subrecipient agreement*, a Memorandum of Understanding, or a contract with an eligible Applicant.
*A subrecipient agreement is a written agreement in effect for each subrecipient before giving out any CDBG funds and remaining in effect for the period during which a subrecipient has control over any CDBG funds, including Program

California Department of Housing and Community Development 2025 Community Development Block Grant Program NOFA 11
Income. At a minimum, a subrecipient agreement must contain content required by the federal CDBG regulations at 24 C.F.R. §570.503.

2. Applicants must meet one or more of the following requirements when the application is submitted to be eligible to apply for funding under this NOFA:
i) An eligible Applicant may apply on its own behalf.
ii) An eligible Applicant may apply on behalf of one or more other eligible Applicants.
iii) Two or more eligible Applicants, which share an activity, may submit a joint application.
iv) An eligible Applicant may apply on behalf of an eligible subrecipient including a Federally- recognized Tribe, non-federally recognized Tribe, or nonprofit. v) In addition to activity and application limits identified in this NOFA, an eligible Applicant may apply for activities in service areas within or outside of the Applicant’s Jurisdiction when the Applicant is applying for funds set aside by the California State Legislative for non-federally recognized Tribes (H.S.C. §50831) and/or Colonias.

B. Non-Entitlement Status
CDBG program funds are provided as grants to Non-Entitlement Units of General Local Government (UGLGs). These UGLGs are encouraged to partner with federally- and non-federally recognized Tribes, districts, agencies, nonprofit service providers, and other community organizations, whenever appropriate, to prepare and submit applications for CDBG funding, and to administer and complete CDBGfunded programs and projects.

Incorporated cities located in an urban county as defined by 42 U.S.C. §5302 (a)(6) must formally elect to be excluded from participation in the urban county entitlement status. HUD and the Department must be notified that the city has elected to be excluded from the urban county participation as per 24 C.F.R. 570.307(g) for it to be eligible for the state CDBG program. Only eligible activities from eligible Applicants will be considered for an award.

Applications for eligible activities outside the Applicant's Jurisdiction must include a legally binding agreement, acceptable to the Department, with the city or county in which the eligible Activity is located. Applicants may not apply to both the State CDBG program and to a CDBG program administered by an Urban County or other entitlement entity during the same program year.

C. Housing Element Compliance
As per H.S.C. §50829, the Applicant must, at a minimum, submit a draft or adopted

California Department of Housing and Community Development 2025 Community Development Block Grant Program NOFA 12
housing element to the Department in accordance with the requirements listed in Government Code (G.C.) §65580, et seq., and G.C. §65585 (see Appendix B) prior to an application submission. Jurisdictions that fail to complete the Housing Element process in a timely manner will be ineligible for funding until the Housing Element meets requirements pursuant to H.S.C. 50829 – 50830. Per CDBG Guidelines, Section 202(a)(4), by the time of award funding, the Applicant must have complied with all the Housing Element requirements listed in H.S.C. 50829 – 50830. The jurisdiction’s Housing Element must be in compliance with CDBG requirements by the deadline listed on the jurisdiction's Application Correction Letter to be considered for award. If a jurisdiction’s Housing Element is determined by the Department to not be in compliance with CDBG requirements by the deadline listed on the Application Correction Letter, the Department has full discretion to determine whether the application will continue to be processed for a potential award.

D. Growth Control Limitations
Applicants that have adopted growth controls, including, but not limited to, restrictions on residential building permits and residential buildable lots, that do not meet the exception criteria in H.S.C. §50830 (b) and (c) are ineligible or deprioritized for funding as per H.S.C. §50830 (see Appendix B). Applicants intending to apply for CDBG funds are required to submit a signed 2025 CDBG Application Certifications and Statement of Assurances form that certifies the Applicant has not adopted any residential growth controls or adopted residential growth controls meet the applicable exception criteria. Failure to submit an executed Application Certifications and Statement of Assurances at the time of application will result in Applicant ineligibility.

E. Eligible Activities
For a complete list of eligible activities allowed under the HCDA, go to 42 U.S.C. §5305 and Chapter 2 of the current version of the CDBG GMM which is found on the CDBG page of the Department’s website. For a list of eligible activities allowed under this NOFA, go to: IDIS CDBG Matrix Code/National Objective Table (ca.gov).

Pursuant to both federal and state laws all CDBG costs must:

1. be eligible;

2. be necessary;

3. be reasonable;

4. not be used to supplant local or state resources; and

5. be guarded against fraud.

F. Application Limits

California Department of Housing and Community Development 2025 Community Development Block Grant Program NOFA 13

1. Each Jurisdiction may submit up to three (3) applications during this NOFA cycle.
i) 1 Project + 1 Program + 1 Public Service or Planning -ORii) 1 Project + 2 Public Service or Planning -ORiii) 1 Program + 2 Public Service or Planning **Note: 2 Projects, 2 Programs, 3 Public Service, or 3 Planning applications are NOT allowed.

2. The two (2) Public Service or Planning applications may be 2 Public Service, 2 Planning, or 1 Public Service and 1 Planning application.

3. Jurisdictions may not apply for more than the aggregate amount of $3.6 million in grant funds regardless of the number of applications submitted. Program Income amounts do not apply towards this limit.

4. The maximum combined award amount per jurisdiction for all awarded applications is $3.6 million in grant funds. Each activity must have a unique Sub Application with a complete budget, National Objective, scope of work, and milestone timeline. Failure to timely submit the Main or Sub Application will result in immediate disqualification.

5. The Main Application’s Budget will need to breakdown the total amount requested in each Sub Application by Sub Application title.

6. Applicants are encouraged to review the sample draft Standard Agreement in Appendix K as a sample of the applicable terms and conditions required for CDBG-funded activities. The final form of the Standard Agreement may vary.

7. The $3.6 million per jurisdiction limits do not apply to Colonias and Native American set-asides. The maximum activity limits are listed below. Program Income (PI) included in an activity budget does not count against the Jurisdiction’s maximum award limit.

Applicants eligible for the set-aside who haven’t been awarded CDBG funds in the last five NOFA cycles (2020-2024) are subject to the same limitations in the number and dollar amount as all other applicants, but may rank from 1 to 3 their priority among planning, public service, project or program. The highest prioritized qualifying selection will compete in the set-aside. Additional applied for planning, public service, project or programs will compete with all other applicants.

8. If applying with another jurisdiction, the application will count as a submission for the lead jurisdiction only.

California Department of Housing and Community Development 2025 Community Development Block Grant Program NOFA 14
G. Activity Limits

1. Public Service – up to $300,000

2. Planning – up to $300,000

3. Projects – up to $3.3 million

4. Programs – up to $1.5 million
i) Housing Program application may include any of the following activities. Each activity must have its own Sub Application.
• 13A – Housing Counseling
• 13B – Single Family (1 - 4 units) Homeownership Assistance • 14A – Single Family (1 - 4 units) Housing Rehabilitation • 14F – Single Family (1 - 4 units) Energy Efficiency Improvements • 15 – Code Enforcement
ii) An Economic Development Program may include any of the following activities.

Each activity must have its own Sub Application.
• 18A – Economic Development Direct Financial Assistance to ForProfit Business • 18B – Economic Development Technical Assistance
• 18C – Economic Development: Microenterprise Assistance H. Additional Requirements

1. Americans with Disabilities Act and Physical Accessibility Requirements i) The Grantee shall ensure compliance with all applicable state and federal building codes and accessibility laws and standards. All developments shall adhere to the accessibility requirements set forth in: (i) California Building Code Chapters 11A and 11B; (ii) the federal Fair Housing Act (42 U.S.C. § 3601 et seq.) and its regulations at 24 C.F.R. Part 100 (particularly 24 C.F.R. 100.205), and its design and construction requirements, including ANSI A117.1-1986, and the Fair Housing Accessibility Guidelines, March 6, 1991, in conjunction with the Supplement to Notice of Fair Housing Accessibility Guidelines: Questions and Answers About the Guidelines, June 28, 1994; and (iii) the Americans with Disabilities Act of 1990 (42 U.S.C. § 12101 et seq.) and its Title II and Title III regulations at 28 C.F.R. Parts 35 and 36; and Section 504 of the Rehabilitation Act of 1973 (29 U.S.C. § 794) and the implementing HUD regulations at 24 C.F.R. Part 8.

2. Construction Standards/Requirements
ii) All residential construction Projects, where applicable, must comply with the housing construction codes of the State of California. All units must meet these

California Department of Housing and Community Development 2025 Community Development Block Grant Program NOFA 15
codes as well as any locally adopted codes and ordinances. Housing construction codes for building in California follow federal and state laws, regulations, and adaptions for construction of single family and multifamily units.

The State Housing Law Program within the Department continuously refines the building standards to ensure they comply with new or changing laws and regulations and develops statewide building standards for new construction of all building types and accessories. The State Housing Law Program also develops the building standards necessary to provide accessibility in the design and construction of all housing other than publicly funded housing. The building standards are published as the California Building Standards Code under the California Code of Regulations, Title 24, and construction standards in the Standard Agreement must meet or exceed all applicable requirements for housing or building construction. Tribal Entities with Projects on Native American Lands are required to follow their own tribal building codes or the International Building Code.

3. Upon request of the Department, Applicants must demonstrate to the satisfaction of the Department that it is compliant with the financial management requirements of 2 C.F.R. Part 200.

IV. Application Requirements
A. National Objectives
CDBG-funded activities must meet the following National Objective:
• Benefit LMI persons
At least 70 percent of the funds awarded must benefit LMI individuals or households.

No activity or portion of a program assisted by these funds may exclude from its benefits the lowest income-eligible group. Individual activities must meet the Low- to Moderate-Income National Objective as defined and described in detail in Chapter 2 of the CDBG GMM.

B. Milestones
All CDBG program-funded activities must be timely implemented in accordance with the milestones defined in the Standard Agreement. Milestones should be project/program specific and a reflection of significant progress. Applicants must include at least five (5) milestones per Activity application. The first and last milestone will be prepopulated and cannot be edited by Applicants. Failure to meet the first milestone identified, is a material breach of the Standard Agreement and will result in a for-cause termination of this Agreement.

California Department of Housing and Community Development 2025 Community Development Block Grant Program NOFA 16
• First Milestone: Activity Initiation. Must be completed no later than 60 days from the Effective Date of the Standard Agreement. The Effective Date of the Standard Agreement is the date which the Department counter signs the Standard Agreement
• Milestone Two: [populated by Applicant] – examples below • Milestone Three: [populated by Applicant] – examples below • Milestone Four: [populated by Applicant] – examples below • Final Milestone: Activity closeout (must be completed no later than 90 days after the Expenditure Deadline, as such term is defined in the Standard Agreement).

TIP: The Department recognizes that Applicants’ proposed milestone dates are estimates.

Instead of using an actual date for all optional milestones, please utilize time frames.

For example:

Milestone One (required): Activity Initiation. Must be completed no later than 60 days from the Effective Date of the Standard Agreement. The Effective Date of the Standard Agreement is the date which the Department counter signs the Standard Agreement.

Milestone Two: Release Invitation for Bid (IFB) within 90 days of Standard Agreement execution by the Department.

Milestone Three: Execute contract with a General Contractor within 120 days of Standard Agreement execution by the Department.

Milestone Four (optional): Begin construction within 9 months of Standard Agreement execution by the Department.

Milestone Five: Record Notice of Completion within 2 months of project completion.

Milestone Six (required): Activity closeout (must be completed no later than 90 days after the Expenditure Deadline, as such term is defined in the Standard Agreement).

Prior to Standard Agreement execution, your CDBG representative may update milestones if changes need to be made.

Additional milestones are optional, though encouraged for best practice of Activity implementation. Applicants are encouraged to evaluate feasibility of meeting milestones and build time for unexpected delays into the milestone schedules.

Milestones may not extend beyond the term of the Standard Agreement. All

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milestones proposed by Applicants are subject to the review and approval of the Department in its discretion.

C. Public Participation
Pursuant to 24 C.F.R. §570.486, Applicants must follow CDBG public participation regulations. Applicants must provide documentation that the Department’s Citizen Participation Plan requirements have been met. Documentation must include proof of public noticing, information provided during the public meeting, and public comments received during the public participation, including Jurisdiction responses to comments. Additional information about public participation requirements can be found in CDBG GMM Chapter 4.

This NOFA is not a commitment of funds to any Activity or Applicant and the submission of an application does not guarantee an award to an Applicant.

V. Application Threshold and Initial Requirements
All applications are required to meet and pass threshold requirements at the time of application submission, as determined by the Department. Applications that do not meet threshold will not move on to ranking and scoring and may be immediately disqualified.

The Department strongly recommends a careful review of the application and application instructions PRIOR to beginning the application.

A. Single Audit
Applicant must provide the Department with its most recent single audit (as submitted to the State Controller’s Office), if applicable. If the Applicant had or has single audit findings identified in the audit, the Applicant must include the remediation plan/agreement; the Applicant will be deemed ineligible for funding through the CDBG program until the findings are resolved or a remediation plan or agreement is established. All findings, remediation plans, and agreements will be reviewed by the Department for risk. A risk determination will be made at the sole and absolute discretion of the Department and applications may be deemed ineligible for funding based on the determination. Any and all single audit findings are included in this evaluation.

This requirement is not limited to federal funds administered by the Department. If an Applicant is currently not subject to single audit requirements, the Applicant may be required to submit their last filed single audit for review.

If an Applicant is not required to submit an annual single audit, they must provide documentation directly from the State Controller’s Office (SCO) to such effect.

B. Site Control

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Applicant must submit evidence of site control.

1. If securing federal funding is contemplated for any stage of a project at the time a project site is acquired, grantee must complete a NEPA environmental review record prior to completing the acquisition. Failure to do this will result in a choice-limiting action, which prohibits the project from receiving any federal funds in the future. If a site is to be acquired for a CDBG-funded project, regardless of whether CDBG funds are used for acquisition or development and construction, evidence of site control must be provided.

Acceptable evidence of site control may be conveyance documentation with substantiation that the transfer is contingent on completion of a NEPA environmental review record and securing federal funds.

2. Construction-related activities must have documented site control for the year in which the application is submitted and for the duration of the Standard Agreement. Public facilities are subject to a five-year no change in use restriction. The restriction recorded against the property, must run with the land and remain in effect regardless of the ownership of the property.

3. If project/activity is in a public right of way or easement, the grantee must submit a satisfactory opinion of counsel that all necessary rights, easements, and permits have been obtained.

4. If site control is expected to expire during the open activity period, the Applicant must document that either an alternative site will be made available or that the activity operators intend to extend or renew the site control on the existing site.

All activities will need to provide proof of intent to extend site control and submit documentation upon site control extension. Site control must be maintained through the operation period of the activity.

5. Acceptable evidence of site control may include: a conditional purchase agreement or enforceable option for projects involving acquisition, a lease option agreement from DGS and/or HCD as verified by HCD’s Excess Sites Team, a deed or lease, or a title report showing ownership of the property vested in the applicable entity. The determination as to what constitutes acceptable evidence of site control shall be made by the Department in its sole and absolute discretion.

C. Statement of Assurances (Appendix D)
Applicant must submit the fully executed Certifications and Statement of Assurances (see Appendix D), including the Jurisdiction’s name, initialing all pages [where applicable], and completing the last page. Please review the Statement and confirm compliance with each requirement. Failure to comply with the certifications and assurances may result in disqualification, recapture of federal funds, and/or

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debarment.

D. Resolution

1. Applicant must submit a completed Authorizing Resolution using the required Department-approved Authorizing Resolution form, which has been duly approved by the Applicant’s governing board. The Authorizing Resolution designates a person or persons responsible for, and authorized to, execute and deliver all documents related to the application of CDBG funds and, if awarded, the execution of a Standard Agreement with the Department.

2. See Appendix C for the Department-approved Authorizing Resolution form as well as instructions on how to complete it.

3. If a governing body must prepare a separate resolution concurrently that conforms to its local standard, it may do so in addition to preparing the Authorizing Resolution form provided by the Department. Applicants must submit their approved resolutions on the form provided by the Department by the application due date. Failure to provide an acceptable resolution at the time of application will result in a delay executing the Standard Agreement.

4. Authorized Signatory involving a City Jurisdiction: Pursuant to California G.C. Sections 40601 and 40602, the mayor or mayor pro tempore must sign any written contracts and conveyances made or entered into by the city, unless the city has an ordinance or municipal code provision in effect that specifically allows or designates contracts to be signed by an officer other than the mayor or mayor pro tempore. Accordingly, if the city does not have a city ordinance or municipal code provision described above, then the Department requires that the mayor or mayor pro tempore sign the Standard Agreement as the authorized signer for the city and provide to the Department the Resolution from the City Council authorizing the mayor to sign the Standard Agreement and related documents on behalf of the city. The mayor or mayor pro tempore may not delegate to a third party his or her authority to sign documents unless there is a city ordinance or municipal code provision in effect that expressly authorizes such delegation and a duly authorized resolution reflecting such delegation is provided to the Department. If the city does have an ordinance or municipal code provision as described above, the Department requires the city to provide a copy of such ordinance or municipal code, as well as the Resolution that indicates the name and title of the city official authorized to sign the Standard Agreement and related documents. The Resolution required by this section must be in form and content acceptable to the Department. The Department reserves the right in all cases to require the Applicant to timely provide a satisfactory written legal opinion from the City Attorney (or other legal

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counsel) stating that the designated signatory for the City has full, current legal authority to execute and deliver this Standard Agreement, and all subsequent amendments and other documents related to the Standard Agreement, to the Department.

E. TIN
Applicant must submit the required Government Agency Taxpayer ID (TIN) Form found in the Files tab of each program solicitation. The submitted TIN form must include FEIN, accurate payment information to be complete, and must not have been signed more than one (1) year before submission.

F. Budget
Applicant must complete CDBG budget found in the Grants Network portal.

Required budget information includes direct costs only. Direct costs for Activity, GA, and Program Income, if applicable, must be completed and clearly identified. Do not include any information on indirect cost, match, or cost share. Budget requests must be in whole dollars and not include any cents.

A Budget must be completed for the Main and every Sub Application. Failure to complete the Budget for the Main and every Sub Application may result in an immediate disqualification.

G. Sources and Uses Chart
Applicants must submit a Sources and Uses Chart which evidences the commitment of all funds required to complete the applied for CDBG project or program. The application will guide Applicants that are using multiple funding sources to upload a comprehensive Activity Sources and Uses Chart. Grantees may use their own form, or the template Sources and Uses Chart found in the Files tab of the application.

Evidence of commitment of any funding sources other than CDBG needed for a project to be feasible must be uploaded at application.

The Sources and Uses Chart must itemize the general projected costs of the project or program.

H. System for Award Management (SAM)
Pursuant to 24 C.F.R. Part 5, all CDBG Applicants are required to verify they and their principals, or any/all persons, contractors, consultants, businesses, subrecipients, etc., that are conducting business with the Applicant are not presently debarred, proposed for debarment, suspended, declared ineligible, or voluntarily excluded from participation in the covered transaction or in any proposal submitted in connection with the covered transaction. Applicants and their partners, contractors, consultants, and subrecipients must register with the System for

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Award Management (SAM) to do business with the U.S. government and have debarment checks that return a registration status of “Active” and “No Active Exclusion Records” under the Exclusion Summary. See Chapter 5 of the CDBG GMM for additional guidance.

The Department will not award or distribute any CDBG program funds to Applicants and Applicant partners, including contractors, subrecipients, and consultants that are debarred, suspended, proposed for debarment, declared ineligible, voluntarily excluded from participation, and/or unregistered in SAM from federally assisted programs. Applicants are not required to perform debarment checks on individual Applicant or partner employees or individual persons unless that person is acting as a contractor, consultant, subrecipient, or program partner and will be receiving payment directly from CDBG funds. Debarment checks for Applicant and all applicant partners must be completed before award of funds.

I. State Objectives
The Applicant must answer the questions regarding Disaster Resiliency in the application form.

J. National Environmental Policy Act of 1969 (NEPA)
Pursuant to 24 C.F.R. 570.604 Environmental Standards, the regulations in 24 C.F.R. Part 58 specify how the National Environmental Policy Act of 1969 (NEPA), must be met. Applicants must demonstrate compliance by submission of a complete, current, and applicable Environmental Review Record with the appropriate level of review form, completed Related Federal Laws and Authority topic worksheets (as applicable), and all supporting documentation. For more information regarding the Related Federal Laws and Authority, please visit the website.

Required NEPA process, training, and current forms are available on the HUD Exchange website. Additional HUD guidance can be found on the Orientation to Environmental Reviews page and additional Department guidance can be found in Chapter 3 of the CDBG GMM and Environmental Review Steps CDB Program.

If CDBG funds will be used for GA Activities, a GA NEPA Environmental Review Record must be submitted specifying the applicable exemption in 24 C.F.R. §58.34(a).

For Business Assistance and Housing Assistance activities that operate as a program but, as per HUD, require a Tiered Review process with site specific environmental reviews for NEPA clearance, both a GA NEPA review and Tier 1 NEPA review are required at time of application.

All documents must be submitted in the application portal. Do not send any documents to the Environmental Services Team (EST). If an application is awarded,

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program staff will submit documents to EST as needed.

K. Construction Projects
All construction projects applying for funding under this NOFA must demonstrate readiness at the time of application, including but not limited to, the submission of the following items:
• Independent Cost Estimate
• Completed NEPA Environmental Review Record for the project. • Bid-ready Plans and Specs
• Certification from Engineer that Plans and Specs are bid-ready • Certification from City that bid docs are ready
• Construction timeline (Gantt Chart preferred)
• Demonstration and Certification that jurisdiction has the capacity and knowledge to manage the project.
• Demonstration and Certification that developer is experienced. • List of required permits including anticipated date of obtaining the permit and any prerequisites needed to obtain the permit. Specifics regarding permit acquisition should be detailed in the application Narrative and Milestones.
• Written commitments for any and all third-party funding that is needed to complete the project.

L. Economic Development (ED) Programs Only
The Applicant must demonstrate capacity and experience to operate an ED Program. Capacity and experience may be documented through one of the following options:

1. The Applicant has hired staff that are able to dedicate capacity to the operation of a CDBG-funded ED Program. These staff must have at least:
i) Three years of CDBG ED experience; or
ii) Five years of commercial underwriting experience plus two years of general CDBG experience; -OR2. The Applicant has prepared a draft request for proposals (RFP) or subrecipient selection process for a qualified consultant or nonprofit ED group with direct experience in implementation of the ED activities proposed in the ED Program application.
i) A request for proposals or a subrecipient selection process must be completed within 60 days of applicant’s receipt of the Standard Agreement. A copy of the executed agreement with the selected subrecipient or contractor must be

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provided to the Department within 120 days of execution of the Standard Agreement. These must be listed as milestones in the application. -OR3. The applicant has identified at least three (3) qualified consultants or nonprofit ED groups with direct experience in implementation of the ED activities proposed in the ED Program application.

4. The Applicant commits to partnering with the Small Business Development Centers or a similar organization that has direct experience in CDBG ED program design, implementation, and commercial underwriting. This commitment will be a resolution, memorandum of understanding, or similar formal statement and will be required at application.

M. Planning Related to Another Activity Only
Applicants wishing to apply for engineering, architectural, and design costs (bidready plans and specs) related to a specific eligible construction activity may do so under a Planning application, however this will not be considered a Planning-only activity. It will be considered Planning Related to Another Activity and will be coded under the ultimate planned-for Matrix Code. For example, bid-ready plans and specs for a senior center will be coded under 03A for Senior Center, and will not be considered to have met the National Objective until the Senior Center is fully built.

To submit an eligible Planning Related to Another Activity application, applicants must demonstrate activity feasibility and obtain written approval from the Department prior to submitting an application. Without prior written authorization from the Department, the application will not meet threshold.

To obtain written authorization, submit an email to [email protected] with the following information:

1. Description of the work to be done.

2. List of deliverables (i.e. architectural designs, independent cost estimate, etc.).

3. If there was a feasibility or preliminary engineering/architectural study conducted for this project, please include that as an attachment to the email.

4. If there was no feasibility or preliminary engineering/architectural study conducted, describe how the jurisdiction determined project feasibility.

5. How does the jurisdiction plan to fund the project when all planning deliverables are complete? Please note, CDBG cannot be the sole funding source.
a. If planning to utilize CDBG funds, what is the contingency plan if the jurisdiction does not receive a CDBG award for the project?

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6. Identify if there are any potential barriers to this project (e.g., permitting, laws, site control, community opposition, etc.).

7. Provide a timeline for the project from planning through construction and closeout.

8. Provide a cost estimate for the project.

9. Is the project’s NEPA complete? If so, please provide.

Additional information may be requested and must be provided. Submission of information does not guarantee written authorization. Once all information is provided and reviewed, the Department will review the information and determine in its sole and absolute discretion, if the proposed activity is feasible and provide written authorization as applicable. Authorization letters are only valid for the current NOFA cycle.

All requests must be submitted via email to the CDBG Unit inbox ([email protected]) no later than by 9AM (PST), 14 calendar days prior to the Submission Portal Opening Date as stated in Section I.B. of this NOFA. If the 14th day lands on a holiday or weekend, the deadline will be the next available business day at 9AM (PST).

N. 50 Percent Rule
Any applicant with one or more current and open CDBG Standard Agreements for which the expenditure deadline established in the agreement(s) has not yet passed must have expended, in aggregate, at least 50 percent of CDBG funds for the same type of activity(s) included in those open CDBG Standard Agreement(s).

For example, if an applicant has 2 open public service awards (one for a hot meals program for $250,000 and another for senior services for $300,000), the applicant must have expended at least 50 percent of the total combined amounts of both awards ($275,001) in order to apply for a new public service application.

Requirement must be met by the time the application submission period opens. For purposes of the “50 Percent Rule,” “expended” means that a Financial Report was submitted in the grants management system and passed at least 2 steps of approval – regardless of the “Spend” column shown in the grants management system.

Applicants with an open CDBG Standard Agreement(s) may not disencumber funds in order to comply with the 50 Percent Rule requirement. Applicants who are preparing to close out an open CDBG Standard Agreement that includes disencumbrance that may affect compliance with the 50 Percent Rule, should submit an exemption request to the CDBG unit inbox ([email protected]) prior to the

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Submission Portal Opening Date. Exemption request must include the draft completed Closeout Package and public notice with proof of posting. The Department has sole and absolute discretion on exemption approval. Exemption approval may be rescinded if the final completed closeout package is not received by the Department by the application submission portal closing date.

VI. Application and Activity Requirements
A. Federal Cross-Cutting Requirements
At time of application submission, all applications must comply with and provide documentation of HUD’s federal cross-cutting requirements found at 24 C.F.R. §570.600 et. seq., and summarized in XII: Federal Program Requirements of this NOFA, as the same may be amended from time to time.

B. Application Verification
Applicants must certify upon submission that their application is true and correct to the best of their knowledge. Selecting an input field or uploading a blank document to circumvent the application requirements invalidates the application certification and will result in immediate disqualification. Applicants that intentionally input false information or that intentionally upload blank documents will have their good standing with the Department revoked and may be determined to be ineligible for other Department funding. Applicants are warned that intentionally providing false information to the Department may constitute fraud.

C. Timely Submittal
Applicants are strongly encouraged to give plenty of time for submitting prior to the application cutoff date and at least several hours prior to the cutoff time.

If an input field, upload requirement, or application component is not functioning correctly, or if there are system outages or other system failures prior to submittal, please contact [email protected] as soon as possible prior to the cutoff time to document the issue so that applications are not disqualified due to technical difficulties. Failure to contact the Department with system issues will not exempt Applicants from application verification requirements.

D. Gap Funding/“But-For”
CDBG is intended to provide stop-gap funding for crucial infrastructure, public safety, housing, and social service projects. CDBG funds may not be obligated to Activities that are documented to already have sufficient funding for the Activity as described, or that have identified multiple funding sources for the same costs,

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resulting in overfunding of the Activity. CDBG funds must be “but-for” funding for every Activity and may not be used to supplant local or state resources. CDBG grant funds cannot be used to replace funds that have been budgeted and/or expended from another funding source for the same Activity (i.e., there cannot be any supplanting). Pre-agreement costs are generally eligible provided that the initial funding for those costs is identified as a temporary funding source (such as a loan from a local fund wherein the loan is float-funding the CDBG Activity pre-agreement costs, but such costs must be repaid so that the temporary loaned funds may be used as originally intended) and that the costs are budgeted to be part of the CDBG Activity.

CDBG funds are not intended to be the sole funding source for a project or program.

E. Good Standing
The Applicant, and any co-Applicant, together with all respective affiliates, must be in good standing with the Department (i.e., are current on all loan and/or grant obligations, have a satisfactory past performance history in all their prior dealings with the Department, and are in full compliance with all Department contracts and reporting requirements). Applicants not meeting the foregoing requirements shall be ineligible to apply for or receive funding under this NOFA.

F. Homelessness Assistance
If you are seeking funding for homelessness assistance, generally defined as activities falling under matrix codes 03C or 03T, you must be a participating member of your local homelessness Continuum of Care (CoC). To demonstrate this, please submit a letter on CoC letterhead signed by the CoC coordinator that states that your jurisdiction is a participating member of the Continuum of Care.

G. Readiness
Planning related to another activity and public facilities and infrastructure project applications must demonstrate readiness as outlined in Section V: Application Threshold and Initial Requirements of this NOFA and the application.

Housing and Economic Development Program applications must demonstrate readiness to be considered for funding. To be considered “ready,” a program will need to provide the following at application submission to the satisfaction of the Department:

1. Draft or final program guidelines,

2. An underwriter either secured or a draft RFP/RFQ to be released within 60 days of Standard Agreement execution by the Department, and

3. A marketing plan/strategy.

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H. Waivers
Any requests for waivers or exceptions to any requirements must be submitted to the CDBG unit inbox ([email protected]) within 30 calendar days of the NOFA release. The denial of any request for a waiver or exception may not be appealed.

The granting or withholding of any waivers or exceptions are subject to the Department’s sole and absolute discretion and in compliance with applicable law.

VII. Application Submission
A. Workshops
The Department is conducting a series of both live and pre-recorded application workshops. These workshops will include training on:
i) Resolution (formerly: Resolutions: What is required and why) ii) Public Participation
iii) NEPA (formerly: How to complete the correct level of Environmental Review) iv) Debarment (formerly: How to pull a debarment check) v) Preparing the Narrative & Milestones (formerly: How to write a narrative and milestones)
vi) Single Audit
vii) 2024 CDBG Application & Budget (formerly: Completing the 2024 NOFA Application and Budget)
viii) 2025 CDBG NOFA Review (formerly: CDBG 2024 NOFA Review) Applicants are required to attend these workshop sessions. It is important to attend and engage in the live webinars to ensure a complete and accurate application is submitted. If they are unable to attend the live virtual workshop, Applicants must certify that they have reviewed these workshops on the CDBG website. The website also provides Training and Technical Assistance materials on the CDBG program, the CDBG Program Redesign, using Grants Network, and preparing a CDBG program application in Grants Network.

Excessive corrections may result in disqualification, or an application being reverted to draft to reapply. Please visit the Department’s website for upcoming information.

B. Submission Process
Applicants must follow instructions in this NOFA, the online application, and the CDBG program Guidelines. The Department strongly encourages Applicants to have all required documents on hand when completing the application. Failure to

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follow instructions and timely submit all required documentation (including a Main and all required Sub Applications) will result in disqualification. Time is strictly of the essence with respect to the application deadlines and other deadlines referenced in this NOFA. Once submitted, applications must stand on their own. It is the Applicant’s responsibility to ensure that the submitted application is clear, complete, and accurate. Department staff may request clarifying information but are unable to accept any new documentation that would provide an unfair advantage over other applications. It is strongly recommended that all documents be reviewed and saved to their own electronic files PRIOR to submission.

The CDBG Application and all required attachments must be submitted to the Department through the eCivis Portal. Applicants must certify that all information is true and complete to the best of their knowledge, under penalty of perjury. Per 83 FR 5848 “Any person who knowingly makes a false claim or statement to HUD may be subject to civil or criminal penalties under 18 U.S.C. §287, 1001 and 31 U.S.C. §3729.’’
Applicants that do not have an account with the eCivis Portal should create an account through the eCivis website. Use the “Create an account” option to initiate a profile. See the available training on the CDBG webpage to learn how to open an account. There is no cost associated with an eCivis Portal account.

A complete application consists of one Main Application and at least one Sub Application. Failure to submit a Main or a Sub Application will be considered an incomplete application. Incomplete applications WILL NOT be reviewed. We recommend reaching out to your CDBG representative or [email protected] for confirmation of receipt.

C. Application Submission

1. Applicants are ultimately responsible for what is submitted in an application, even if the application was prepared by a consultant. Applicants that rely on consultants or grant writers to prepare the CDBG application must carefully and thoroughly review the application for completeness and correctness prior to submittal.

2. Applications submitted through the eCivis Grants Network Portal must be submitted by a jurisdiction’s Profile account. Applications submitted by an account using an email address for someone other than a jurisdiction employee will be disqualified.

3. All documents requiring signature must be executed by the appropriate Authorized Representative identified in the Resolution of the Governing Body submitted with the application.

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4. All application certifications must be certified by a staff member of the applying jurisdiction with authority to make such certifications on behalf of the jurisdiction.

5. A complete application consists of one Main Application and at least one Sub Application. Failure to submit a Main or a Sub Application will be considered an incomplete application. Incomplete applications WILL NOT be reviewed. We recommend reaching out to your CDBG representative for confirmation of receipt.

D. Applicant Responsibility
It is the duty and responsibility of each Applicant to review the provisions, requirements, and limitations of all funding sources applied for and obtained for a particular project, program, or activity to ensure that each and every requirement of those funding sources is compatible with all Department program requirements and restrictions. Incompatibility of funding sources may result in the denial or cancellation of an award or may result in the placement of conditions or limitations on an award, all as determined by Department in its sole and absolute discretion.

E. Disclosure of Application
Information provided in the Application will become public record available for review by the public pursuant to the California Public Records Act (G.C. §7920, et. seq.).

As such, the Department may disclose any materials provided by the Applicant to any person making a request under this Act, without prior notice to the Applicant.

The Department cautions Applicants to use discretion in providing information not specifically requested, including, but not limited to, bank account numbers, personal phone numbers, home addresses, or other personally identifying information (PII).

By providing this information to the Department, the Applicant is waiving any claims of confidentiality, and consents to the Department’s disclosure of the Applicant’s material upon receipt of a Public Records Act request and without advance notice to the Applicant.

VIII. Application Review
All applications submitted by the application deadline and that pass the Threshold evaluation phase will be reviewed for Activity eligibility. Activities that do not meet program eligibility requirements will be disqualified for funding.

The Department reserves the right, at its sole discretion, to suspend, amend, or modify the provisions of this NOFA at any time, including, without limitation, the amount of funds available hereunder. This includes, but is not limited to, authorizing

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an eligible increase in funding to any Applicant after the Department makes an award under this NOFA.

A. Review Process

1. All applications will be reviewed for minimum Threshold Requirements as outlined in this NOFA.

2. Applications that meet minimum Threshold Requirements will be placed into the appropriate set-aside if applicable and scored.

3. Awards will be made in order from the highest to the lowest score, within the appropriate set-aside if applicable. If funding cannot be awarded to all planning, public service, projects, or programs, within a set-aside, the highest scores ones will be awarded. If set-asides are exhausted, the remainder will be scored along with all others.

B. Set-Aside for Applicants Not Awarded CDBG Funds in the Last Five Years

1. Applicants who have not received a CDBG award in the past five NOFA cycles (2020-2024) will be eligible to rank in priority order from 1 to 3 planning, public service, project or program to compete under a set-aside. i) This rank in priority will be made via a prompt in the main application. ii) PI only Awards are not considered a CDBG Award received in the past 5 years for the purposes of this ranking.

C. Scoring
All applications will be scored according to the evaluation criteria outlined in Appendix F. All applications will be sorted, from highest to lowest score, within each set-aside if applicable. The Department has full and absolute discretion regarding scoring criteria and interpretation of requirements and definitions. The Department’s decision shall be final, binding, and conclusive, and shall constitute the final action of the Department.

The Community Need Score. This value is calculated by transforming the Low/Mod Percentage from HUD’s Low- and Moderate-Income Summary Data (LMISD) based on the 2016-2020 American Community Survey (ACS) into a numerical value, dividing the value in half.

D. Corrections
Prior to routing the application for Standard Agreement packaging, the Department may make clerical changes to the application such as naming conventions, grammar, and capitalization. Any changes will be documented, and the applicant will

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be notified.

IX. Appeal Criteria and Process
Any request to appeal the Department’s decision regarding an application shall be reviewed for compliance with the Guidelines and the NOFA. All decisions rendered shall be final, binding, and conclusive, and shall constitute the final action of the Department.

The Department will provide opportunity to appeal any disagreed points assessment, pursuant to the appeals process as set forth in the NOFA. Disqualifying threshold determinations shall also follow a similar process, which shall be set forth in greater detail in the NOFA. For reference, all such appeals must be received by the Department no later than five (5) business days from the date of the Department’s threshold review, and/or initial score letter, as applicable, representing the Department’s decision made in response to the application.

A. Competitive Application Appeals

1. Basis of Appeals
i) Applicants may appeal the Department’s written determination that an application is incomplete, has failed threshold review, or has otherwise been determined to provide an insufficient basis for an award (including point scoring and tie breaker).
ii) At the sole discretion of the Department, the Department’s written determination may include a request for clarifying and/or corrective information. For purposes of this section, “clarifying information” includes information and/or documentation that resolves ambiguities in any application materials that will inform the Department’s threshold, scoring, and feasibility determinations. iii) No Applicant shall have the right to appeal a decision of the Department relating to another Applicant’s application (e.g., eligibility, award). iv) Any request to appeal the Department’s decision regarding an application shall be reviewed for compliance with the Guidelines and this NOFA. All decisions rendered shall be made by the Program Manager or his/her designee. The decision shall be final, binding, and conclusive, and shall constitute the final action of the Department.
v) The appeal process provided herein applies solely to decisions of the Department made pursuant to this NOFA.

2. Process

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i) To file an appeal, Applicants must submit to the Department, by the deadline set forth below, a written appeal which states all relevant facts, arguments, and evidence upon which the appeal is based. Furthermore, the Applicant must provide a detailed reference to the area or areas of the application that provide clarification and substantiation for the basis of the appeal. No new or additional information will be considered if this information would result in a Competitive advantage to an Applicant. Once the written appeal is submitted to the Department, no further information or materials will be accepted or considered thereafter. Appeals are to be submitted to the Department at [email protected] according to the deadline set forth in the Department review letters.

3. Filing Deadline
i) Appeals must be received by the Department no later than five (5) business days from the date of the Department’s threshold review, or initial score letters, as applicable, representing the Department’s decision made in response to the application.

X. Award Recommendations
Applications that are eligible, complete, timely submitted, and that satisfy all threshold requirements may be recommended for funding, subject to the availability of funds for the activity(ies) applied for. Applicants recommended for award will officially be notified of awards via an award letter sent via email. Subsequently, the grantee will receive award notification through the eCivis Grants Network. The award notification will include instructions for accepting or declining the award, as well as an executable Standard Agreement. Applicants that are not recommended for awards or that fail threshold will be officially notified via email that their application was not awarded or failed to pass threshold. The Final Award List will be posted on the Department’s CDBG webpage. Applicants may request a copy of their application reviews after the review has been completed and the Applicant has been notified of the results.

XI. Awards Announcement and Grant Implementation
A. Awards Announcements
The Department anticipates awards will be announced no later than July 2026. All awards are subject to availability of funds and compliance with all applicable legal requirements of the Program. Until all awards are announced, the CDBG staff will not be able to discuss applications or the status of applications.

B. Standard Agreements

California Department of Housing and Community Development 2025 Community Development Block Grant Program NOFA 33
Successful Applicants (awardees) will enter into a Standard Agreement with the Department. A draft, sample Standard Agreement is included as Appendix E to this NOFA. The Standard Agreement contains all the relevant state and federal requirements, Activity performance and management requirements, and disbursement requirements. The form and content of the sample draft Standard Agreement is subject to revision without prior notice. A condition of award will be that a Standard Agreement must be executed by the awardee within 30 days (contracting period) of the awardee’s receipt of the Standard Agreement(s). Failure to execute and return the Standard Agreement(s) to the Department within the contracting period may result in award cancellation. Award cancellations are final.

Funding awarded through this NOFA will have a 33-month (two (2) years and nine (9) months) expenditure and liquidation period.

To ensure that the Standard Agreement(s) are being sent to the correct individual, Applicants MUST complete ALL required sections of the profile section of the application and must let the Department know in writing if the contact information has changed since the time of application submittal by emailing [email protected]. Standard Agreements and communication during this process will be with the email address designated in the profile section of the Application.

XII. Federal Program Requirements
A. Federal Cross-Cutting Requirements
The CDBG program is administered under the rules and regulations promulgated primarily in 24 C.F.R. §570.600, et seq, as the same may be amended from time to time. These primary regulations are known as the federal cross-cutting requirements and form the basis of the programmatic requirements. The Department incorporates all federal cross-cutting requirements into the state CDBG program, and the regulations in Part 570 are translated into required actions on the part of all Grantees of the state CDBG program.

The following is a list of some of the most commonly applicable federal cross-cutting requirements. This is not an exhaustive list.
i) Environmental Standards (based on National Environmental Policy Act of 1969 [NEPA])
ii) Labor Standards (Davis-Bacon and related laws)
iii) Public participation requirements
iv) Fair Housing

California Department of Housing and Community Development 2025 Community Development Block Grant Program NOFA 34
v) Equal Opportunity and Non-Discrimination in federal Grant Programs vi) Federal Procurement Guidelines
vii) National Flood Insurance Program compliance
viii) Relocation and displacement requirements
ix) Employment and Contracting Opportunities Section 3 Compliance x) Lead-based paint requirements
xi) No use of debarred, ineligible, or suspended contractors or sub-recipients xii) Uniform Administrative Requirements and Cost Principles xiii) Conflict of interest prohibitions
xiv) Compliance with the Architectural Barriers Act and the Americans with Disabilities Act
xv) Federal reporting requirements
xvi) Grant and subrecipient monitoring requirements
xvii) Build America, Buy America Act (BABA) requirements B. Relocation Plan Requirements
Applicants engaging in project-specific activities that may or will cause the temporary or permanent relocation and displacement of persons, property, or businesses must provide a project-specific relocation plan as part of the application. The plan must meet the standards established in the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970 (URA) and any applicable State relocation requirements. Applicants must successfully demonstrate that they have met URA requirements prior to the start of the project or displacement Activity.

Applicants must include relocation costs in project budgets and timely pay the same to those displaced in accordance with applicable law.

Applicants must provide relocation assistance to persons who may be displaced if the Activity in the grant application is funded. This plan must outline how the Grantee will enforce and manage the project’s relocation and displacement activities and estimate what relocation benefits will be required so those costs can be included in the project’s development budget.

C. Procurement Requirements
Pursuant to 24 C.F.R. §570.489(g), all Grantees must comply with federal procurement requirements. The Department will review the Grantee’s procurement documents for services (i.e., administrative sub-contractor, Davis-Bacon consultant, etc.) at time of monitoring or upon the Grantee’s request.

California Department of Housing and Community Development 2025 Community Development Block Grant Program NOFA 35
Requirements for federal procurement can be found at 2 C.F.R. §200.317-327.

Applicants are responsible for meeting all federal procurement standards for goods and services funded through federal programs. Failure to meet procurement requirements may result in disqualification, recapture of federal funds, and debarment.

D. False, Fictitious or Fraudulent Claims
Warning: Any person who knowingly makes a false claim or statement to HUD or the Department may be subject to civil or criminal penalties under 18 U.S.C. §287, 1001 and 31 U.S.C. §3729.

1. Detecting, Preventing, and Reporting Fraud
Fraud is a white-collar crime that has a devastating effect on the CDBG program because the CDBG program beneficiaries are victims of this crime when the CDBG program is abused. The Department wants to stop any criminal assault on the CDBG program it administers, and in doing so all CDBG funds go to people it was designed to help and improve their living conditions.

2. Combatting Fraud
The HUD Office of Inspector General (OIG) is committed to protecting HUD’s programs, operations, and beneficiaries from dishonest individuals and organizations.

HUD cannot combat fraud alone; they rely on Department and CDBG NOFA Applicants to combat CDBG program fraud. HUD also relies on Applicants for, and people receiving, HUD benefits, such as: tenants receiving rental assistance, borrowers with HUD insured loans, or citizens having their communities restored using HUD grants.

The HUD OIG Hotline number is 1-800-347-3735. This is the primary means to submit allegations of fraud, waste, abuse, mismanagement, or Whistleblower related matters for the CDBG program to the OIG.

HUD OIG accepts reports of fraud, waste, abuse, or mismanagement in the CDBG program from HUD employees, anyone administering the CDGB program, anyone working in the CDBG program, contractors, and the public.

You can report mismanagement or violations of law, rules, or regulations by HUD employees or program participants.

Fraud, Waste and Abuse in the CDBG program and its operation may be reported in one of the following four (4) ways:
i) By email:
[email protected]

California Department of Housing and Community Development 2025 Community Development Block Grant Program NOFA 36
ii) By phone:

Call toll free: 1-800-347-3735
iii) By fax:
202-708-4829
iv) By mail: Department of Housing & Urban Development
HUD OIG, Office of Investigation, Room 1200
Field Office
One Sansome Street
San Francisco, CA 94104
(213) 534-2518
HUD OIG, Office of Investigation
Suite 4070
Regional Office
300 North Los Angeles Street
Los Angeles, CA 90012
(213) 534-2518
E. Whistleblower Protection Acts
(Federal Whistleblower Protection Act (5 U.S.C Section 2302(b)(8)) The Federal Whistleblower Protection Act (WPA) protects employees from retaliation for making protected disclosures. The WPA also provides penalties for supervisors who retaliate against Whistleblowers.

1. A disclosure is protected under the WPA if the employee discloses information the employee reasonably believes to be evidence of:
i) a violation of any law, rule, or regulation,
ii) gross mismanagement,
iii) a gross waste of funds,
iv) an abuse of authority, or
v) a substantial and specific danger to public health or safety.

2. In general, an employee or Applicant may make a protected disclosure to anyone, including non-governmental audiences, unless the information is classified or specifically prohibited by law from release. Options for making a protected disclosure include:
i) Informing a supervisor or someone higher up in management,

California Department of Housing and Community Development 2025 Community Development Block Grant Program NOFA 37
ii) Submitting a complaint to the OIG by emailing the OIG at [email protected], iii) Filing a complaint with the Office of Special Counsel (OSC) http://www.osc.gov/
F. The California Whistleblower Protection Act
The California Whistleblower Protection Act (Title 2, Division 1, Chapter 6.5, Article 3.5, G.C. §§ 8548-8548.5) authorizes the California State Auditor to receive complaints from state employees and members of the public who wish to report an improper governmental activity. An "improper governmental activity" is any action by a state agency or any action by a state employee directly related to state government that:
i) Violates any state or federal law or regulation,
ii) Violates an Executive Order of the Governor, a California Rule of Court, or any policy or procedure required by the State Administrative Manual or State Contracting Manual, or
iii) Is economically wasteful or involves gross misconduct, incompetency, or inefficiency. Complaints received by the State Auditor are confidential, and the identity of the complainant may not be revealed without the complainant's permission, aside from to an appropriate law enforcement agency conducting a criminal investigation.

There are many ways to file a complaint:
i) By Telephone:

You may call the Whistleblower Hotline at (800) 952-5665 to file a complaint by talking to one of the State Auditor's employees. The hotline generally is staffed Monday through Friday from 8:00 a.m. to 5:00 p.m. If you call when the hotline is not being staffed, or staff is occupied with other calls, you may leave a voicemail message requesting a return call.
ii) By Mail or Facsimile:

You may file a complaint in the form of a letter to the State Auditor addressed as follows:

Investigations
California State Auditor
P.O. Box 1019
Sacramento, CA 95812
Or you may fax the letter to the State Auditor at (916) 322-2603.

California Department of Housing and Community Development 2025 Community Development Block Grant Program NOFA 38
iii) As an alternative, you may complete the electronic version of the complaint form (which is available on the State Auditor website at auditor.ca.gov), print it out, and return it by mail or facsimile as stated above. iv) Online:

Although the State Auditor does not accept complaints by e-mail, you may file a complaint online at
https://app.scoutcms.com/CaStateAuditorWhistleblowerComplaint v) The State Auditor will not undertake an investigation unless there is a basis for believing that your complaint has sufficient merit to warrant spending resources on an investigation. Your complaint should therefore include:
a.A clear and concise statement of what you Compare alleging to be improper activity and why you believe it is improper.
b.The name or other information that clearly identifies the person you are alleging has acted improperly and the department where that person works.
c. The names and contact information for any witnesses who can confirm the truth of what you are saying.
d.Copies of any documents that will support what you are saying. (You should not submit original documents, as they cannot be returned.)

California Department of Housing and Community Development 2025 Community Development Block Grant Program NOFA 39
XIII. LIST OF APPENDICES
Appendices are located in the eCivis Grants Network under the ‘Files’ tab within each specific program solicitation.

Appendix A: Community Need Score
Appendix B: Housing Element and Growth Control Requirements Appendix C: Resolution Template of the Governing Body
Appendix D: 2025 CDBG Application Certifications and Statement of Assurances Appendix E: Sample DRAFT Standard Agreement
Appendix F: 2025 CDBG Scoring Matrix
Appendix G: General Admin Calculator

Legal No.

Ukiah Daily Journal
415 Talmage Road Suite A
Ukiah, CA. 95482
[email protected]
I am a citizen of the United States and a resident of the County aforesaid; I am over the age of eighteen years,
and not a party to or interested in the above entitled
matter. I am the principal clerk of the printer of the Ukiah Daily Journal, a newspaper of general circulation, printed and published daily in the City of Ukiah, County of
Mendocino and which newspaper has been adjudged a
newspaper of general circulation by the Superior Court of the County of Mendocino, State of California, under the date of September 22, 1952, Case Number 9267; that
the notice, of which the annexed is a printed copy (set in type not smaller than non-pareil), has been published in each regular and entire issue of said newspaper and not in any supplement thereof on the following dates, to wit:
05/30/2025
I certify (or declare) under the penalty of perjury that the foregoing is true and correct.

Dated at Ukiah, California,
May 30th, 2025

PROOF OF PUBLICATION
(2015.5 C.C.P.)

STATE OF CALIFORNIA

COUNTY OF MENDOCINO
Sue Fullbright, LEGAL CLERK
0006899239
2117148

CITY OF UKIAH
ATTN: ACCOUNTS PAYABLE
300 SEMINARY AVE
UKIAH, CA 95482
r.BP16-07/12/17 1
ATTACHMENT 2

r.BP16-07/12/17 2

2025 STATE COMMUNITY

DEVELOPMENT BLOCK GRANT
(CDBG) PROGRAM
300 Seminary Ave. Ukiah, CA 95482
Phone: 707-463-6708 Email: [email protected]

LOCAL APPLICATION
The 2025 California state CDBG Notice of Funding Availability (NOFA) is expected ty be released sometime in calendar year 2025.

Completed local applications will be received by the City of Ukiah Housing Division, 300 Seminary Ave. Ukiah, CA 95482, or via email to [email protected], no later than Wednesday, July 2, 2025 @ 5:00 p.m.

For applications to be deemed complete, each question must be answered completely, and any required supporting documentation must be provided.

ATTACHMENT 3

1. APPLICANT INFORMATION
Organization _____________________________________________________ Address _____________________________________________________ _____________________________________________________
Contact Person _____________________________________________________ Email _____________________________________________________ Phone _____________________________________________________

2. PROJECT OR PROGRAM ACTIVITY INFORMATION
Project/Program Name: _________________________________________________ Project/Program Activity Allocation (refer to NOFA): _________________________ Address of Project/Program: _____________________________________________ For Program activities, list the address of the organization.

Amount Requested: $ ___________ (Activity) $ ________________________ (GA) AD = Activity Delivery; GA = General Administration
Are you requesting funding for an OTC project? ____
See the 2024 NOFA for information on OTC projects. OTC = Over the Counter.

Are you requesting funding for a competitive program? ____ (Yes) ____ (No) A separate application must be submitted for each individual project or program. This application cannot be used for multiple activities.

National Objective: ____ (LMA) ____ (LMC) ____ (LMH) ____ (LMJ) If proposing LMA, Low- Mod Area Benefit, please attach census block group information supporting this national objective.

How many beneficiaries will be assisted through this activity? ______________ LMA = number of Low-Moderate Income (LMI) persons in service area that will benefit.

LMC = Number of LMI persons that will benefit.

LMH = Number of LMI households that will benefit.

LMJ = Number of LMI jobs created/retained.

Activity Description:

In the lines below, or in a separate attachment, enter a detailed description of your activity which should include at a minimum: what the activity is, why it is needed, who the beneficiaries will be, where will it take place, how it will be done and when it will be complete. This should be a similar description provided for the NEPA. Additionally, please indicate if this will be a new activity, a modification to an existing activity, or if a new type of assistance will be added to an existing activity.
______________________________________________________________________ ______________________________________________________________________ ______________________________________________________________________ ______________________________________________________________________ ______________________________________________________________________ ______________________________________________________________________ ______________________________________________________________________ ______________________________________________________________________ ______________________________________________________________________ ______________________________________________________________________ ______________________________________________________________________ ______________________________________________________________________ ______________________________________________________________________ Detailed Scope of Work – Deliverable Narrative
In the lines below, or in a separate attachment, provide a detailed narrative describing the deliverables that will be completed as part of this activity. (i.e.: Deliverable 1- marketing plan; Deliverable 2- town hall meeting minutes; Deliverable 3- labor compliance files etc.) ______________________________________________________________________ ______________________________________________________________________ ______________________________________________________________________ ______________________________________________________________________ ______________________________________________________________________ ______________________________________________________________________ ______________________________________________________________________ ______________________________________________________________________

______________________________________________________________________ ______________________________________________________________________ ______________________________________________________________________ ______________________________________________________________________ ______________________________________________________________________ ______________________________________________________________________ ______________________________________________________________________ ______________________________________________________________________ ______________________________________________________________________ ______________________________________________________________________

3. PROGRAM OR PROJECT FUNDING – MATCHING SOURCES
Is the CDBG funding requested gap funding? ____ (Yes) ____ (No) If Yes, please attach a separate budget worksheet, listing and describing by line item or as a pro forma, all sources of funding and uses of the funding for the project. If No, please contact the City of Ukiah Community Development Department. Per the CDBG program, CDBG funds are to be used for gap financing and are not to supplant state and local funds that were previously dedicated to this activity.

Please list other funding sources for the proposed project:
____________________________________________________________________________ ____________________________________________________________________________ ____________________________________________________________________________

4. OTC CAPITAL IMPROVEMENT PROJECTS
If your organization is applying for an Over the Counter (OTC) capital improvement project through the CDBG program, answer the following questions. If your organization is applying for a program, check the line above for N/A.

Do you have site control? ____ (Yes) ____ (No)
If Yes, attach proof of site control.

Do you have bid ready plans and specs? ____ (Yes) ____ (No) Bid ready plans and specs must be reviewed by the Community Development Department for completeness prior to request for approval of the application by the City Council.

Can your project be ready to go to bid within 90 days of execution of the standard agreement between the City of Ukiah and State of California? ____ (Yes) ____ (No)

5. APPLICATION CERTIFICATION
Applicant hereby certifies that it has read and understands the regulations governing the State Community Development Block Grant (CDBG) Program, and the City of Ukiah’s CDBG Local Application process. Applicant further agrees to abide by such regulations, and that violations of these regulations shall constitute grounds for cancellation of any funding commitment. Applicant hereby certifies that the information submitted in the Local Application and any supporting materials is true, accurate, and complete to the best of its knowledge. Applicant acknowledges and understands that if facts and/or information herein are found to be misrepresented, it shall constitute grounds for the rejection of this application and eligibility for City of Ukiah 2025 CDBG projects or programs. ______________________________________________________________________ Printed Name/Title Signature Date
______________________________________________________________________ Printed Name/Title Signature Date

STATE OF CALIFORNIA - BUSINESS, CONSUMER SERVICES AND HOUSING AGENCY GAVIN NEWSOM, Governor

DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT

DIVISION OF FEDERAL FINANCIAL ASSISTANCE
651 Bannon Street, 7th Floor
Sacramento, CA 94252-2054
(916) 263-2771
www.hcd.ca.gov
Department of Housing and Community Development 2025 CDBG NOFA Revised 8/15/2025 Page 1
Appendix F: CDBG Scoring Matrix
This scoring matrix will be used to score all applications under the current Notice of Funding Availability (NOFA). An applicant’s score will be the total of the points received from all scoring criteria in the table below. The max score is 230 points.

If you have any questions on how this scoring matrix works, please email [email protected].

Applicant Name:

Application Name:

Reviewer: Total Score:

ATTACHMENT 4

Department of Housing and Community Development 2025 CDBG NOFA Revised 3/12/2025 Page 2
Criteria Max
Points
High Poverty Service Area – Points are awarded to sub applications for which the service area for the proposed activity occurs in cities, counties or census tracts experiencing a poverty rate of 30 percent or more.

Data is compiled from the most recent ACS 5-Year Estimate and available on: Poverty Status by Census Area.

For activities that occur in multiple census tracts, 50 percent or more of the total number of census tracts for the activity must be above the threshold. i.e.: if an activity occurs in four census tracts, two out of the four census tracts must have a poverty rate of 30 percent or higher.

Where it appears that the service area does not make sense, the CDBG Program Manager may, at their sole and absolute discretion, review and revise the service area.

Applicants will need to define the service area for the activity within the application.

For applications for which the National Objective is Low-Mod Area (LMA), the LMA area used to meet the LMA National Objective must be within the service area.

Additionally, as a reminder Code Enforcement programs may only be used for targeted efforts in deteriorating or deteriorated areas where the enforcement, combined with other actions, is designed to arrest the decline of the area. Therefore, for Code Enforcement programs, the service area will typically not be the entire jurisdiction. 25 Community Need Data – Based on the low- and moderate-income summary data (LMISD) from HUD Exchange 50
Capacity & Knowledge – If applicant has in-house expertise or has already procured or chosen a consultant or subrecipient respectively to operate and/or manage its proposed activity, award up to 10 points. • Fully executed contracts and agreements (up to 10 points) o At least 4 months left on the contract/agreement at the time of application closing date (10 points)
o Less than 4 months left on the contract/agreement at the time of application closing date (5 points)
• In-House expertise with at least 3 years of experience running a CDBG program for the proposed activity (10 points)
• Draft contracts/agreements with draft RFP/RFQ (0 points) 10

Department of Housing and Community Development 2025 CDBG NOFA Revised 3/12/2025 Page 3
Criteria Max
Points
CDBG as Gap Funding – Award points based on the ratio of the amount of leveraging funds to the amount of CDBG funds requested (round to nearest 1/100):
• 1.01:1 or more: 25 points
• 0.76:1 to 1:1: 20 points
• 0.51:1 to 0.75:1: 15 points
• 0.26:1 to 0.50:1: 10 points
• 0.01:1 to 0.25:1: 5 points
• No leveraging funds: 0 points
This must be documented on the Sources and Uses Excel, the Activity Description, and the Threshold section of the application. 25 Application Corrections – Award points based on the number of corrections that would be required for the application if it were to be awarded:
• 4 or less: 50 points
• 5 to 8: 10 points
• 9 or more: 0 points
Any exceptions made to a correction will still count as an application correction under this criterion. Number of corrections will be averaged for Housing and Economic Development Programs applications with multiple Sub Applications.
50

Department of Housing and Community Development 2025 CDBG NOFA Revised 3/12/2025 Page 4
Criteria Max
Points
Community Engagement – Award points based on applicant’s additional community engagement efforts beyond the minimum required by HCD (cumulative; up to 15 points):
• Noticed and held additional public meetings/hearings: award 5 points per additional public meeting/hearing
• Noticed public meetings/hearings in additional locations: award 1 points per additional unique notice location
• Noticed public meetings/hearings using methods other than newspaper publications and bulletin board postings (e.g., social media, flyers, etc.): award 1 points per unique method of noticing • Utilized community meeting spaces other than board/council chambers for public meetings/hearings (e.g., library, neighborhood facility, non-profit halls): award 5 points per public meeting/hearing held at a community meeting space
• Provided resources to remove barriers to participation at public meetings/hearings (e.g., childcare, food, transit fare vouchers, interpreter and/or closed caption services [provided without request]): award 5 points per resource provided
• Solicited community feedback through additional methods of engagement other than speaking at a public meeting (e.g., anonymous questionnaire, online survey, boothing): award 2 points per additional method of engagement
15 Labor Standards Reporting – If applicant is current on labor standards reporting to HCD, award 5 points (if applicant has no active HCD awards, award 5 points) 5
Timely Reporting – Award points based on the number of reports during the past year for which an Activity Report, Financial Report, and/or Closeout Package was submitted late. At a minimum, Activity and Financial Reports must be submitted every three months (up to 20 points):
• 0 late reports: 20 points
• 1 late report: 15 points
• 2 late reports: 10 points
• 3 late reports: 5 points
• 4 late reports: 0 points
Applicants with no active awards during the past year, award 20 points.

Reports must be submitted in the grants management system and pass at least 2 steps of approval by the Submission Portal Opening Date. 20

Department of Housing and Community Development 2025 CDBG NOFA Revised 3/12/2025 Page 5
Criteria Max
Points
Program Income Receipting – Award points based on applicant’s progress in complying with HCD’s CDBG Program Income requirements (cumulative):
• If the applicant has submitted a Program Income Receipting and Reporting application, award 5 points
• If the applicant has accepted a Program Income Receipting and Reporting award in eCivis, award 5 points
• If the applicant’s first Program Income Receipting and Reporting report has been approved by HCD, award 5 points
• If the applicant’s report(s) for FY 2023-2024 and/or FY 2024-2025 have been approved by HCD, award 5 points
• If the applicant has encumbered its Program Income into an award OR applicant does not have any Program income to encumber, award 5 points
Reports must be submitted in the grants management system and pass at least 2 steps of approval by the Submission Portal Opening Date. 25 State-owned Excess Sites (Planning applications only) – Planning applications related to sites identified under Executive Order N-06-19 to create affordable housing on excess state-owned property. 5 Tie Breaker – In the event of a tied score, the application submitted first will be awarded. -
Total 230

Local Application Scoring Matrix (based on Appendix F: Scoring Matrix of 2025 State CDBG NOFA) Local Applications Project Project Program
Summercreek Village Apts Orchard Village/Manor Apts Business Assistance Program Matrix Code 14 F Matrix Code 14 F Matrix Code 18A
Criteria Max Points Estimated Points Estimated Points Estimated Points High Poverty Service Area 25 0 0 0
Community Need Data 50 21.25 21.25 21.25
Capacity & Knowledge 10 10 10 10
CDBG as Gap Funding 25 0 0 0
Application Corrections 50 50 50 50
Community Engagement 15 15 15 15
Labor Standards Reporting 5 5 5 5
Timely Reporting 20 20 20 20
Program Income Receipting 25 25 25 25
State-Owned Excess Sites 5 0 0 0
Tie Beaker -- -- -- --
TOTALS 230 146.25 146.25 146.25
ATTACHMENT 5

ATTACHMENT 6

1 Department of Housing and Community Development
Resolution Form Revised 3/18/2025 2025 CDBG NOFA
Appendix C: Resolution Template of the Governing Body
(Required)
Applicants are required to use the resolution form on the following page with no changes to content other than what is in the fillable fields.

When completing and preparing the Resolution, please refer to section V.D. of the 2025 NOFA.

Please note: On the next page, hidden text is used to provide instructions. Once a document is printed or converted to a pdf, the hidden text will be omitted.

To display hidden text:

1. Go to the Files Tab

2. Select Options from the bottom of the left-hand column

3. Click on the “Display” option

4. Check the “Hidden Text” box.

5. Make sure the “Print hidden text” box is not checked. This will ensure that when you convert to PDF or print the document, the instructional, hidden text is not displayed.

Note 1: The attesting officer cannot be the person identified in the Resolution as the authorized signer.

Note 2: Unless there is a city ordinance stating otherwise, the mayor must be the designated official in Section 5.

ATTACHMENT 7

Resolution of the Governing Body
RESOLUTION NO. 2026-

A RESOLUTION APPROVING AN APPLICATION FOR FUNDING AND THE

EXECUTION OF A GRANT AGREEMENT AND ANY AMENDMENTS
THERETO FROM THE 2025 FUNDING YEAR OF THE STATE CDBG

PROGRAM
BE IT RESOLVED by the City Council of the City of Ukiah as follows:

SECTION 1:

The City Council has reviewed and hereby approves the submission to the State of California of one or more application(s) in the aggregate amount, not to exceed, of $3,600,000 for the following CDBG activities, pursuant to the and 2025 CDBG NOFA:

List activities and amounts
Activity (e.g. Public Services,
Infrastructure, etc.)
Dollar Amount Being Requested for the
Activity
Business Assistance Program (matrix code 18A) $ 1,500,000 Multi-Unit Residential Rehabilitation Project (matrix
code 14B
$ 2,100,000
$
$
$
SECTION 2:

The City Council hereby approves the use of Program Income in an amount not to exceed $0.00 for the CDBG activities described in Section 1.

SECTION 3:

The City Council acknowledges compliance with all state and federal public participation requirements in the development of its application(s).

SECTION 4:

The City Council hereby authorizes and directs the City Manager or designee*, to execute and deliver all applications and act on the City’s behalf in all matters pertaining to all such applications.

SECTION 5:

If an application is approved, the City Manager or designee*, is authorized to enter into, execute and deliver the grant agreement (i.e., Standard Agreement), any recordable or nonrecordable contract documents, and any and all subsequent amendments thereto with the State of California for the purposes of the grant.

SECTION 6:

If an application is approved, the Director of Community Development or designee*, is authorized to sign and submit Funds Requests and all required reporting forms and other documentation as may be required by the State of California from time to time in connection with the grant.

PASSED AND ADOPTED at a regular meeting of the City Council of the City of Ukiah held on 2/4/2026 by the following vote:

AYES: Enter # of votes or names
NOES: Enter # of votes or names
ABSENT: Enter # absentees or names
ABSTAIN: Enter # of abstains or names
Susan Sher, Mayor
City Council

STATE OF CALIFORNIA
City of Ukiah
I, Kristine Lawler, City Clerk of the City of Ukiah, State of California, hereby certify the above and foregoing to be a full, true and correct copy of a resolution adopted by said City Council on this 4th day of February, 2026 and that said resolution has not been amended, modified, repealed, or rescinded since its date of adoption and is in full force and effect as of the date hereof.

Kristine Lawler, City Clerk of the City of Ukiah, State of California
______________________________________
By: Kristine Lawler, City Clerk

Agenda Item No: 14.a.

MEETING DATE/TIME: 2/4/2026

ITEM NO: 2026-78

AGENDA SUMMARY REPORT
SUBJECT: Introduce by Title Only an Ordinance Adding Chapter 9, Article 1, to Division 2 of the Ukiah City Code, Entitled "Right to Industry."
DEPARTMENT: Community
Development PREPARED BY: Craig Schlatter, Community Development Director, Jesse Davis, Chief Planning Manager PRESENTER:

Jesse Davis, AICP/Chief Planning Manager;
Craig Schlatter, AICP/Community Development
Director
ATTACHMENTS:

1. Ordinance Summary & Mendocino County Right to Industry Ordinance

2. Draft Ordinance

3. Right to Industry Maps - Ukiah
Summary: Council will consider introduction by title only of an ordinance adding Chapter 9, Article 1 (“Right to Industry”) to Division 2 of the Ukiah City Code. The ordinance establishes disclosure requirements for properties located on or near manufacturing zoned land and clarifies how lawfully established industrial operations are addressed under the City’s nuisance regulations.

Background: In December 2013, Mendocino County adopted Chapter 6.35 of the Mendocino County Code, establishing standards related to public nuisance claims involving certain industrial uses under the title of 'Right to Industry'. The County ordinance applies to parcels located on or within 300 feet of land zoned Limited Industrial (I-1), Industrial/Coastal Industrial (I), General Industrial (I-2), or Pinoleville Industrial (P-1).

In December 2022, the City of Ukiah adopted its 2040 General Plan. The General Plan Land Use Element includes goals, such as LU-5, to encourage and retain employment-generating and industrial uses while ensuring compatibility with surrounding and planned land uses. In recent years, the City has taken steps to support long-standing land uses through disclosure-based policies, including agricultural right-to-farm regulations adopted in 2024 (Ordinance No. 1241). Applying a similar approach to industrial uses implements direction within the City's General Plan while also supporting regional consistency and informing future property owners and residents about existing and future industrial activities.

Discussion: Community Development Department Staff have prepared a draft Right to Industry ordinance modeled on Mendocino County’s adopted ordinance (Attachment 1) from 2013 and updated the County's approach to apply the policy to within the City of Ukiah and its associated manufacturing zoning designations.

The proposed City of Ukiah Right to Industry Ordinance (Attachment 2) establishes a City policy to support lawfully established manufacturing operations within city limits while requiring disclosure for properties located on or near industrially zoned land. The ordinance is closely modeled on Mendocino County’s 2013 Right to Industry ordinance and is intended to promote consistency between City and County land use policies.

The City's ordinance clarifies that industrial operations that were lawfully established, operating in compliance with applicable permits and regulations, and not a nuisance at the time they commenced shall not be deemed a public or private nuisance solely due to impacts on adjacent or nearby land uses after three (3) years of operation. The ordinance does not exempt industrial uses from compliance with state or local health, safety, environmental, or building regulations. Operations that are negligent, improper, or unlawful are not protected.

Nuisance complaints would continue to be addressed through existing City enforcement procedures.

The ordinance establishes disclosure requirements for properties zoned Manufacturing (M) or Airport Industrial Park – Planned Development (Industrial) (AIP-PD:I), as well as properties located within 300 feet of those zoning districts. A map of affected parcels is included as Attachment 3. Similar to County policy, disclosure would be required during real property transactions and prior to approval of discretionary land use entitlements involving residential development. The disclosure is intended to inform purchasers and occupants of potential impacts associated with nearby industrial operations, such as noise, odors, dust, and vibration. The ordinance also allows, but does not require, the installation of informational signage within industrial zoning districts.

The ordinance is procedural in nature and does not authorize new development or physical changes to the environment, only notifications through disclosure and minor signage allowances. Therefore, Staff can determine that it is exempt from environmental review pursuant to CEQA Guidelines Section 15061(b)(3). No fiscal impact is associated with introduction of the ordinance.

Staff recommends that the City Council introduce by title only an ordinance adding Chapter 9, Article 1 (“Right to Industry”) to Division 2 of the Ukiah City Code.

Recommended Action: Introduce by title only an ordinance adding Chapter 9, Article 1, to Division 2 of the Ukiah City Code, entitled "Right to Industry."
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: City Manager's Office, City Attorney
STRATEGIC PLAN (SP): SP 3B - Analyze and consider opportunities for regional partnerships that support or improve the delivery of municipal services; SP 4A - Identify and remove barriers to economic development while leveraging economic opportunities.

CLIMATE INITIATIVES (CI): N/A
GENERAL PLAN ELEMENTS (GP): GP-A2 - Economic Development Element.

SUMMARY

ORDINANCE OF THE MENDOCINO COUNTY BOARD OF SUPERVISORS ADDING SECTION 6.35 TO CHAPTER 6 OF THE MENDOCINO COUNTY CODE TITLED BUSINESS

LICENSES AND REGULATIONS
This ordinance adds Chapter 6.35 to Title 6, “Business Licenses and Regulations,” of the Mendocino County Code.

Ordinance Summary, Chapter 6.35
Chapter 6.35 of the Mendocino County would regulate the filing of public nuisance abatement claims for owners of parcels located on or within 300 feet of the boundary of any parcel in Mendocino County zoned as the following: Limited Industrial (I-1); Industrial and also known as “Coastal Industrial” (I); General Industrial (I-2); and Pinoleville Industrial (P-1). The ordinance would only be valid for industrial businesses that have been in operation for 3 or more years, and requires that the business meet three (3) conditions to be covered under this ordinance. First, that its operations be consistent with the industrial operation provisions of the Mendocino County Zoning Code; Second, that it be conducted or maintained for commercial purposes; and Third, that those operations be conducted in a manner consistent with applicable land use and environmental laws and regulations.

The ordinance does not exempt businesses located within the industrial zones of the County from following applicable environmental laws. Furthermore, residents of these adjacent and affected parcels shall be notified through public noticing requirements and in a manner consistent with the outcome of the Board of Supervisor’s discussion during the December 10, 2013 Board meeting on how it would like to implement the disclosure noticing requirements of this ordinance. The ordinance does not preempt a parcel owner’s right to bring forth a lawsuit to remedy what the parcel owner deems to be a nuisance from a business located on an adjacent, industrially zoned parcel but which is covered by this ordinance. The ordinance negates a public nuisance abatement claim by a parcel owner as long as the three conditions, mentioned in the above paragraph, are met by the business owner at the center of the complaint and said business owner has been in operation for 3 or more years.

ATTACHMENT 1

- MENDOCINO COUNTY CODE
Title 6 - BUSINESS LICENSES AND REGULATIONS
CHAPTER 6.35 RIGHT TO INDUSTRY
Mendocino County, California, Code of Ordinances Created: 2025-12-16 07:23:14 [EST] (Supp. No. 73)

CHAPTER 6.35 RIGHT TO INDUSTRY
Sec. 6.35.010 Title.

This Chapter shall be known as and may be referred to in all proceedings as the "Mendocino County Right to Industry Ordinance".
(Ord. No. 4319, 1-7-2014)
Sec. 6.35.020 Purpose.

The purpose of this ordinance is to enhance the prospects of growth and stability for Mendocino County's businesses that are located within the County's established industrial zones: I-1 (Limited Industrial), I-2 (General Industrial), I (Coast Industrial), and P-1 (Pinoleville Industrial). The County recognizes that industrial interests operating within the County may be endangered by residents or other businesses located nearby and who seek to abate what they deem a nuisance arising from operations by said industrial interests.

This ordinance seeks to reduce nuisance complaints by disclosing to existing and potential property owners of land zoned "Industrial Land", or which may be located within three hundred (300) feet of land zoned "Industrial Land", that they are affected by this ordinance. Furthermore, this ordinance seeks to clarify the circumstances in which an industrial operation may ultimately be declared a nuisance and ordered to change operations, after an initial investigation, declaration of a potential violation, and review of the evidence by a County Enforcement Officer or a Hearing Officer.
(Ord. No. 4319, 1-7-2014)
Sec. 6.35.030 Policy.

Pursuant to the Planning Principles of the Mendocino County General Plan, it is the declared policy of this County to encourage sustainable economic growth. This objective directly correlates with the success of Mendocino County's industrial operations located within its industrially zoned districts. Where non-industrial land uses extend into industrial areas or exist side by side, industrial operations may become the subject of nuisance complaints. As a result, industrial operations could be forced to cease or curtail operation, and others could be discouraged from making investments and improvements.

It is the purpose and intent of this ordinance to reduce the loss to the County of its employment base by limiting the circumstances under which industrial operations may be considered a nuisance. This section is not to be construed as in any way modifying or abridging State law as set out in the California Civil Code, Health and Safety Code, Fish and Game Code, Food and Agricultural Code, Division 7 of the Water Code, or Government Code, relative to nuisances, but rather is only to be utilized in the interpretation and enforcement of the provisions of this code and County regulations.

No existing or future industrial business or any of its appurtenances, consistent with the industrial operation provisions of the Mendocino County Zoning Code, conducted or maintained for commercial purposes, and in a manner consistent with applicable land use and environmental laws and regulations, shall become or be a nuisance, private or public, for adjacent land uses in or about the locality thereof after the same has been in operation for more than three (3) years, when such action was not a nuisance at the time it began; provided that

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the provisions of this subsection shall not apply whenever a nuisance results from a negligent or improper operation of any such industrial operation or its appurtenances. (Ord. No. 4319, 1-7-2014)
Sec. 6.35.040 Definitions.

Unless the context otherwise requires, the following current definitions and provisions of the Title 20 Zoning Ordinance of the Mendocino County Code, or as amended in the future, shall govern the construction of this Ordinance for more effective interpretation and enforcement.

INDUSTRIAL LAND. Shall mean those land areas of the County specifically classified and zoned as Limited Industrial (I-1), Industrial and also known as "Coastal Industrial" (I), General Industrial (I-2), and Pinoleville Industrial (P-1), within which industrial and business activities are to be encouraged and protected. This zoning may include future Mendocino County General Plan and Zoning Code amendments to accommodate new types of industrial zoning, such as Light Industrial.

INDUSTRIAL OPERATION. Shall mean and include those Industrial Use Types described within Division I of the Mendocino County Zoning Code, Chapter 20.028 "Industrial Use Types," Coastal Industrial Use Types described within Division II of the Mendocino County Zoning Code, Chapter 20.328 "Coastal Industrial Use Types", whose definitions shall incorporate any future Mendocino County General Plan and Zoning Code amendments, and which includes the following:

Mendocino County Zoning Code, Chapter 20.028 "Industrial Use Types" A. Section 20.028.005 — General Description of Industrial Use Types. a. Industrial use types include on-site production of goods by methods not agricultural or extractive in nature. They also include certain uses accessory to the above, as specified in Chapter 20.164, Accessory Use Regulations.

B. Section 20.028.010 — Custom Manufacturing.
a. "Custom manufacturing" means the on-site production of individually crafted goods using hand tools or mechanical equipment typical of the type or specifications found in a home shop or not creating noise, dust, fumes, visual impacts or electrical or water use in excess of home shop or hobby equipment and may include incidental on-site sales of those goods to retail consumers.

Typical uses include ceramic studios, candle-making shops, custom jewelry manufacturing and wood working shops, or light assembly of components manufactured off-premises.

C. Section 20.028.015 — General Industrial.
a. "General industrial" means industrial plants primarily engaged in manufacturing, compounding, processing, assembling, packaging, treatment or fabrication of materials and products. Included are aggregate processing plants such as crushing, screening, washing and mixing plants.

D. Section 20.028.020 — Heavy Industrial.
a. "Heavy industrial" means all other industrial plants or other uses involving the compounding of radioactive materials, petroleum refining or manufacturing of explosives.

E. Section 20.028.025 — Explosive Storage.
a. "Explosives storage" means storage of any quantity of explosives as defined by Section 1200 of the California Health and Safety Code. Typical uses include storage in the course of manufacturing, selling or transporting explosives or in the course of blasting operations.

Mendocino County Zoning Code, Chapter 20.328 "Coastal Industrial Use Types"

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(Supp. No. 73)

A. Section 20.328.005 - General Description of Industrial Use Types.

On-site production or processing of goods by methods not agricultural or extractive in nature. They also include certain uses accessory to the above, as specified in Chapter 20.456 (Accessory Use Regulations)
B. Section 20.328.010 — Coastal-Related Industrial.
a. The coastal-related industrial use type includes coastal-related industrial uses, including but not limited to fish waste processing and fish processing of products for other than human consumption.

C. Section 20.328.015 — Coastal-Dependent Industrial.
a. Coastal-dependent industrial uses require a maintained navigable channel to function, including, for example: public or private docks, water-borne commercial carrier import and export operations, ship/boat building and repair, commercial fishing facilities, including berthing and fish receiving, off-boat sales and fish processing when product is for human consumption (fish waste processing and fish processing of products for other than human consumption are permitted under the coastal-related use type), and aquaculture support facilities. Offshore mining, dredging, mineral or petroleum extraction processes, or the stockpiling or transfer of relative material for, are not included.

D. Section 20.328.020 — Custom Manufacturing: Light Industrial. a. Establishments primarily engaged in the on-site production of individually crafted goods using hand tools or mechanical equipment typical of the types or specifications found in a home shop, or using equipment or processes which do not create noise, dust, fumes, visual impacts, or electrical or water use in excess of home shop or hobby equipment, and which may include incidental on-site sales of those goods to retail consumers. Typical uses include ceramic studios, candle-making shops, custom jewelry manufacturing, woodworking shops, printing shops, custom textile manufacturing or light assembly of components manufactured off-premises.

E. Section 20.328.025 — General Industrial.
a. Industrial plants primarily engaged in manufacturing, compounding, processing, assembling, packaging, treatment, fabrication or recycling of materials and products. Included are white metal and appliance recycling and processing and aggregate processing plants such as crushing, screening, washing and mixing plants.

F. Section 20.328.030 — Heavy Industrial.
a. All other industrial plants or other uses not included within the General Industrial Use Type involving the compounding of radioactive materials or manufacturing of explosives.

This section is not limited to the afore-mentioned use types, and shall additionally include the permitted uses, uses subject to a minor use permit, and uses subject to a major use permit as described in the I, I-1, I-2 and P1 Zoning Ordinances within the Title 20 — Zoning Ordinance, Divisions I and II of the Mendocino County Zoning Code.
(Ord. No. 4319, 1-7-2014)
Sec. 6.35.050 Findings.

The Board of Supervisors of Mendocino County finds that it is in the public's interest to preserve and protect industrial land and operations within the County of Mendocino and to specifically protect these lands for exclusive industrial use. The purposes of this Chapter, therefore, are to promote the general health, safety and welfare of

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(Supp. No. 73)

the County, to preserve and protect for exclusive commercial use those lands zoned for industrial use, to support and encourage continued industrial operation in the County, and to disclose to prospective purchasers and residents of property adjacent to or near to industrial operation of the inherent potential ramifications associated with such purchase of residence including, but not limited to, the sounds, odors, dust, and chemicals that may accompany industrial operations.
(Ord. No. 4319, 1-7-2014)
Sec. 6.35.060 Disclosure.
(A) CONSUMER DISCLOSURE BY SELLER. A person who is acting as an agent for the seller of real property which as long as it is zoned "Industrial Land", or which may be located within three hundred (300) feet of land zoned "Industrial Land", or the seller of real property if he or she is acting without an agent for as long as it is zoned "Industrial Land", or may be located within three hundred (300) feet of land zoned "Industrial Land" shall disclose to the prospective purchaser that:

The property described herein may be zoned as "Industrial Land", or may be located within three hundred (300) feet of such land, and residents of the property may be subject to inconvenience or discomfort arising from use of machinery, and from the pursuit of industrial operations including, but not limited to, assembly, manufacturing, cutting, drilling, machining, metalworking, milling, punching, "tapping", soldering, transportation of materials and goods, and welding. All of these activities, and others not mentioned in the non-exclusive preceding list, may generate light, glare, dust, smoke, noise and odor, all of which may occur twenty-four (24) hours a day, seven (7) days a week. Mendocino County has established zoning for industrial land which sets as a priority the industrial use of the lands included therein, and residents of such property, or within three hundred (300) feet of the border of zoned areas, should be prepared to accept such inconvenience or discomfort as normal and necessary to industrial operation.
(B) DISCLOSURE IN DOCUMENTS. The disclosure statement set forth in Section 6.35.060(A) shall be included in a document that a purchaser, lessee or transferee signs evidencing the sale, purchase, transfer, or lease of real property zoned "Industrial Land" or may be located within three hundred (300) feet of such land. The disclosure by an agent or seller as specified in Section 6.35.060 may also be delivered to the prospective transferee as part of the Mendocino County Real Estate Disclosure Advisory form as commonly provided by real estate brokers, or by delivery to the prospective transferee of a local option disclosure statement pursuant to Article 1.5, Section 1102.6a of Chapter 2 of Title 4 of Part 4 of Division 2 of the Civil Code of the State of California.
(C) DISCLOSURE IN DISCRETIONARY ACTIONS. Where a building designed for residential occupancy is to be located on property which, as long as it is zoned "Industrial Land", or on property which may be located within three hundred (300) feet of land zoned "Industrial Land", the owners of the property shall, prior to a discretionary action, be required to sign a statement of acknowledgement on forms approved by Planning and Building Services containing the following statement:

The property described herein may be zoned as "Industrial Land", or may be located within three hundred (300) feet of such land, and residents of the property may be subject to inconvenience or discomfort arising from use of machinery, and from the pursuit of industrial operations including, but not limited to, assembly, manufacturing, cutting, drilling, machining, metalworking, milling, punching, "tapping", soldering, transportation of materials and goods, and welding. All of these activities, and others not mentioned in the non-exclusive preceding list, may generate light, glare, dust, smoke, noise and odor, all of which may occur twenty-four (24) hours a day, seven (7) days a week. Mendocino County has established zoning for industrial land which sets as a priority the industrial use of the lands included therein, and residents of such property, or within three hundred (300) feet of the border of zoned areas, should be prepared to accept such inconvenience or discomfort as normal and necessary to industrial operation.

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(Supp. No. 73)

In lieu of signing the statement required above, the owner may submit evidence that the statement set forth in Section 6.35.060(A) has been made part of a document evidencing the sale, purchase, transfer, or lease of the property on which the building is to be constructed.
(Ord. No. 4319, 1-7-2014)
Sec. 6.35.070 Installation of Signs.

The County may install or permit the installation of signs at the entry or within established industrial areas zoned as "Industrial Land" to notify and explain to purchasers that some of the land in this area is being used for industrial purposes and the operator's interests are protected by law. The prospective purchaser of such land or a residence is advised to check with local County agencies as to any regulation or requirements which may affect industrial property and of inherent potential problems associated with a purchase of such property or a residence in areas zoned as an "Industrial Land" and of the likely effect of such industrial operations. (Ord. No. 4319, 1-7-2014)
Sec. 6.35.080 Precedence Clause.

It is the finding of the Board of Supervisors that this Ordinance is to take precedence over all ordinances or parts of ordinance or resolutions or parts of resolutions regarding nuisance abatement complaints in conflict herewith and same are hereby repealed to the extent of such conflict and no further. (Ord. No. 4319, 1-7-2014)

ORDINANCE NO.

ORDINANCE OF THE CITY COUNCIL OF THE CITY OF UKIAH ADDING A NEW ARTICLE 1, CHAPTER 9 TO DIVISION 2 OF THE UKIAH CITY CODE ENTITLED “RIGHT TO INDUSTRY” The City Council of the City of Ukiah hereby ordains as follows:

SECTION ONE. FINDINGS

1. It is in the public's interest to preserve and protect industrial land and operations within the City of Ukiah. The City recognizes that industrial businesses located within established industrial/manufacturing zoning districts are essential to the local and regional economy, providing employment opportunities, supporting the tax base, and contributing to the longterm economic stability of the Ukiah Valley.

2. The purposes of this Ordinance is to preserve and protect areas identified as Manufacturing Land for industrial and manufacturing uses, to support and encourage continued industrial operations in the City, and to disclose to prospective purchasers, residents and developers of the potential impacts commonly associated with manufacturing activities, including noise, odors, dust, and similar conditions.

3. The City finds that this Ordinance is consistent with the City of Ukiah General Plan, Land Use Element, Goal 5, which encourages, facilitates, and supports the development of new employment and industrial uses and the retention of existing industry while ensuring compatibility with existing surrounding uses and planned uses.

4. The proposed Ordinance is determined to be exempt from environmental review in compliance with California Environmental Quality Act (CEQA) Guidelines Section 15061(b)(3). Under the general rule in Section 15061(b)(3), the project does not have the potential for causing a significant effect on the environment. As the Ordinance only provides a mechanism for written disclosure of land uses, it can be seen with certainty that there is no possibility that the Ordinance itself will have a significant effect on the environment.

SECTION TWO.

A new Chapter 9, entitled “Industry,” shall be added to Division 2 (Business) of the Ukiah City Code.

SECTION THREE.

A new Article 1, entitled “Right to Industry,” shall be added to Division 2, Chapter 9 of the Ukiah City Code and shall read as follows:
§ 2800 PURPOSE AND INTENT
It is the purpose and intent of the City to reduce the loss of the employment base and to support economic stability by limiting the circumstances under which lawfully established industrial ATTACHMENT 2

operations may be considered a nuisance under the City Code. This Article is intended to promote compatibility between manufacturing operations and surrounding land uses and to provide regulatory consistency with Mendocino County policies related to industrial land and uses.

This Article shall not be construed to modify, abridge, or supersede California law governing nuisances, including, but not limited to, the California Civil Code, the California Health and Safety Code, the California Fish and Game Code, the California Food and Agricultural Code, Division 7 of the California Water Code, and the California Government Code. Rather, this Article shall be applied solely in the interpretation and enforcement of the City Code, zoning regulations, and related local enforcement procedures.

No existing or future industrial business, nor any of its appurtenances, that is lawfully established and operated for commercial or industrial purposes in a manner consistent with the City’s zoning regulations, approved permits, and applicable land use and environmental laws and regulations, shall be deemed to be or become a public or private nuisance under the City Code due to impacts on adjacent or nearby land uses after such operation has been in operation for a period of more than three (3) years, provided that the operation was not a nuisance at the time it commenced.

The protections afforded by this Article shall not apply in any case where a nuisance condition results from negligent, improper, or unlawful operation of the industrial business or its appurtenances, nor shall this section limit the City’s authority to enforce applicable health, safety, environmental, or building regulations.
§ 2801 DEFINITIONS
Unless the context otherwise requires, the following definitions and the provisions of the City’s Zoning Code, as set forth in Division 9, Chapter 2 of this Code, and any amendments thereto, shall govern the construction, interpretation, and enforcement of this Article.

A. MANUFACTURING LAND: Shall mean those land areas within the City that are specifically classified and zoned for manufacturing or industrial use under the City’s Zoning Code, including, but not limited to, the Manufacturing (M) zoning district or the Airport Industrial Park – Industrial (AIP-PD(I)) zoning district, or parcels designated with an Industrial (I) land use designation under the City’s General Plan. Manufacturing Land shall also include any successor zoning districts or classifications adopted by the City through future amendments to the General Plan or Zoning Code that are intended to accommodate manufacturing or industrial uses.

B. MANUFACTURING OPERATION: Shall mean and include those manufacturing, industrial, and related use types permitted, conditionally permitted, or lawfully existing within the City’s Manufacturing (M) or Airport Industrial Park – Industrial (AIP-PD(I)) zoning districts pursuant to the City’s Zoning Code.
§ 2802 DISCLOSURE
A. Consumer Disclosure by Seller: Any person acting as an agent for the seller of real property that is zoned Manufacturing Land, or that is located within three hundred (300) feet of property zoned Manufacturing Land, and any seller of real property acting without an agent where such

property is zoned Manufacturing Land or is located within three hundred (300) feet of Manufacturing Land, shall disclose to the prospective purchaser the following:

The property described herein may be zoned for manufacturing or industrial use, or may be located within three hundred (300) feet of such land. Residents or occupants of the property may be subject to inconvenience or discomfort arising from the use of machinery and from the conduct of manufacturing and industrial operations, including, but not limited to, assembly, manufacturing, cutting, drilling, machining, metalworking, milling, punching, tapping, soldering, welding, and the transportation of materials and goods. These activities, and others not listed, may generate light, glare, dust, smoke, noise, vibration, and odors, and may occur twenty-four (24) hours per day, seven (7) days per week. The City of Ukiah has established zoning districts that prioritize manufacturing and industrial uses, and occupants of property located within or near such districts should be prepared to accept such conditions as normal and necessary to lawful manufacturing and industrial operations.

B. Disclosure in Documents: The disclosure statement set forth in subsection A of this Section shall be included in a document signed by a purchaser, lessee, or transferee evidencing the sale, purchase, transfer, or lease of real property that is zoned Manufacturing Land or that is located within three hundred (300) feet of Manufacturing Land. Such disclosure may be provided as part of a real estate disclosure advisory form customarily used by real estate brokers, or through delivery of a local option disclosure statement pursuant to Article 1.5 (commencing with Section 1102.6a) of Chapter 2 of Title 4 of Part 4 of Division 2 of the California Civil Code, or through another written disclosure mechanism approved by the City.

C. Disclosure in Discretionary Actions: Where a building designed for residential occupancy is proposed on property that is zoned Manufacturing Land, or on property located within three hundred (300) feet of Manufacturing Land, the property owner shall, prior to approval of any discretionary land use entitlement, sign a statement of acknowledgement on a form approved by the City of Ukiah Community Development Department containing the disclosure statement set forth in subsection A of this Section. In lieu of signing the acknowledgement required by this subsection, the property owner may submit evidence satisfactory to the City that the disclosure statement required by subsection A has been incorporated into a document evidencing the sale, purchase, transfer, or lease of the property on which the residential building is to be constructed. § 2803 INSTALLATION OF SIGNS
The City of Ukiah may install, or permit the installation of, signs at the entry to or within areas zoned Manufacturing (M) or Airport Industrial Park – Industrial (AIP-PD(I)) to notify prospective purchasers, tenants, and occupants that property within the area is used for manufacturing or industrial uses.

Such signage may advise prospective purchasers or occupants to consult with the City regarding applicable regulations or requirements affecting manufacturing or industrial uses, and to consider the potential impacts commonly associated with manufacturing and industrial operations when purchasing, leasing, or occupying property within or near such zoning districts.

Installation of signs pursuant to this section shall be discretionary and shall not be construed as a condition of approval for any development, nor as a representation regarding the legality, intensity, or duration of any specific manufacturing or industrial operation. § 2804 PRECEDENCE
It is the intent of the City Council that this Article shall take precedence over any provision of the City Code, ordinance, or resolution relating to nuisance abatement or enforcement that conflicts with the provisions of this Article, but only to the extent of such conflict. All other provisions of the City Code shall remain in full force and effect.

SECTION FOUR.

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

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

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

Introduced by title only on , 2026, by the following roll call vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

Adopted on , 2026, by the following roll call vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

Susan Sher, Mayor

ATTEST:

Kristine Lawler, CMC/City Clerk

THIS MAP AND DATA ARE PROVIDED WITHOUT WARRANTY OF ANY KIND.

DO NOT USE TO DETERMINE LEGAL PROPERTY BOUNDARIES.
101
101
SH 222

TALMAGE ROAD

EAST GOBBI STREET

SOUTH DORA STREET

WEST GOBBI STREET SOUTH DORA STRRET
Right to Industry
Parcels
300-foot Buffer
Zone Designation
Manufacturing (M)
PDI - Planned
Development
Industrial
Mendocino County
Assessor Parcels
City of Ukiah City
Limits
:
0 1,000
Feet
ATTACHMENT 3

RIGHT TO INDUSTRY PARCEL MAP - SOUTH & CENTRAL UKIAH

THIS MAP AND DATA ARE PROVIDED WITHOUT WARRANTY OF ANY KIND.

DO NOT USE TO DETERMINE LEGAL PROPERTY BOUNDARIES.
101
101

NORTH STATE STREET

SCOTT STREET
Right to Industry
Parcels
300-foot Buffer
Zone Designation
Manufacturing (M)
Mendocino County
Assessor Parcels
City of Ukiah City
Limits
:
0 560
Feet

RIGHT TO INDUSTRY PARCEL MAP - NORTH UKIAH

Agenda Item No: 14.b.

MEETING DATE/TIME: 2/4/2026

ITEM NO: 2026-77

AGENDA SUMMARY REPORT
SUBJECT: Adoption of a Resolution Approving a Zero Tax Share Agreement Between the City of Ukiah and the County of Mendocino for the Ukiah Corporation Yard Annexation (1 Carousel Lane), Local Agency Formation Commission (LAFCo) File No. A-2025-06.

DEPARTMENT: Community
Development PREPARED BY:

Jesse Davis, Chief Planning Manager, Maya
Simerson, Project & Grant Administrator, Darcy
Vaughn, Assistant City Attorney
PRESENTER: Jesse Davis, Chief Planning Manager
ATTACHMENTS:

1. 1 Carousel Lane - Tax Share Agreement - LAFCo A-2025-06)

2. Draft Resolution
Summary: Council will consider adoption of a resolution approving a Zero Tax Sharing Agreement between the City of Ukiah and the County of Mendocino for the Ukiah Corporation Yard Annexation (1 Carousel Lane), Local Agency Formation Commission (LAFCo) File No. A-2025-06.

Background: On June 30, 2025, the City of Ukiah acquired the property located at 1 Carousel Lane to serve as the City’s new Municipal Corporation Yard. The acquisition supports the City’s long-term objective to modernize municipal infrastructure and improve service delivery across a regional service area.

The City’s existing corporation yard, located east of Ukiah Municipal Airport, no longer meets operational needs. The facilities are undersized and functionally constrained for Fleet and Plant Maintenance, Street Maintenance, and Water and Wastewater Maintenance activities. As the City and surrounding region have grown, the limitations of the current site have increasingly affected operational efficiency and service capacity. In addition, the corporation yard relocation will also free up needed space at the Ukiah Airport to support critical aviation business and emergency operations at the facility.

Although the 1 Carousel Lane property is currently located outside the City’s incorporated boundaries, it is centrally located within the service area of the Ukiah Valley Water Authority (UVWA). UVWA is a joint powers authority formed to coordinate regional water system planning, infrastructure modernization, and long-term water supply reliability among its member agencies.

On September 19, 2025, Staff submitted an application to the Mendocino County Local Agency Formation Commission (Mendocino County Local Agency Formation Commission) for the City of Ukiah's annexation of approximately 7.87 acres of City-owned property located at 1 Carousel Lane, Ukiah, California (Assessor’s Parcel Number 167-280-15), commonly referred to as the Ukiah Corporation Yard. The annexation has been assigned LAFCo File No. A-2025-06.

The property is improved with an approximately 98,000-square-foot industrial/commercial building and is used primarily for public facilities and municipal operations. Prior to submittal of the annexation application, the site was prezoned by the City as Public Facilities (PF).

Because the property is currently located outside the City’s incorporated limits, it remains subject to property

taxation. Upon annexation, City-owned property used exclusively for public and municipal purposes will fall within the City’s jurisdiction and will not generate ad valorem property tax revenue, except to the extent that any taxable private possessory interests may exist and continue to lease of portion of the subject property.

As a point of reference, both Counties and Cities in California are generally exempt from paying property taxes on land they own, lease, and use for public purposes. In most cases, California’s property tax system is intended to tax private wealth tied to land ownership, not public assets held or used for the benefit of the general public.

This framework recognizes that many public facilities must be located remotely or outside incorporated areas to function effectively. Facilities such as water storage, landfills, wastewater treatment plants, power generation equipment, and similar infrastructure may reasonably be owned and operated by a municipality beyond its city limits.

Conversely, Counties often provide social services and other governmental functions within incorporated cities. In those cases, Counties typically benefit from streamlined permit review and land use authority within city boundaries. Counties do not pay property taxes on incorporated lands used for public purposes, which can be detrimental to Cities by limiting their share of allocated property tax revenue on key parcels, especially in areas of downtown.

Discussion: Under Revenue and Taxation Code section 99, the City and the County are required to enter into a property tax revenue exchange agreement as a component of the annexation application process, even if the associated land is understood to be exempt. The Revenue and Taxation Code further requires that the agreement be approved by the legislative bodies of both agencies and submitted to the Mendocino County Local Agency Formation Commission (LAFCo) prior to commission consideration of the annexation.

Although the City and the County are parties to a previously adopted Mendocino County Master Tax Sharing Agreement, the City has determined that this annexation is more appropriately addressed through a separate, annexation-specific tax sharing agreement. The Ukiah Corporation Yard annexation involves unique characteristics, including City ownership, exclusive public use, and the absence of revenue-generating private development, which make application of the Master Tax Sharing Agreement unnecessary and administratively impractical in this instance.

The proposed Tax Sharing Agreement (Attachment 1) is limited in scope and applies only to the Annexation Area associated with LAFCo File No. A-2025-06. The agreement expressly acknowledges the continued validity of the Mendocino County Master Tax Sharing Agreement and does not amend, supersede, or otherwise affect that agreement or its application to any other annexation or change of organization.

Key provisions of the proposed Agreement include:
• A zero (0) exchange of ad valorem property tax revenue between the City and the County. • No change to existing tax rate area allocations or base year property tax shares. • Confirmation that the agreement does not affect the allocation of property tax revenues for any other taxing agency.
• Acknowledgment that any taxable possessory interests within the Annexation Area remain subject to assessment, levy, and distribution in accordance with existing law. • Considerations and next steps if the public use ceases consistent with California Government Code.

Because the property is City-owned and used exclusively for municipal purposes, it does not generate Bradley-Burns local sales tax revenue under current use. Accordingly, no sales tax exchange is required or created by the proposed agreement.

For municipalities across Mendocino County, completing the annexation of key municipal infrastructure sites is essential to reducing the cost of providing public services. This is especially true for facilities that support regional water delivery, such as water storage sites in Fort Bragg or the City of Ukiah’s municipal corporation yard serving the districts of the UVWA. Equally important is streamlining the process for adopting individual tax-share resolutions outside the previously approved master agreement. The long-standing principle that publicly operated facilities are not subject to property taxes should be recognized promptly by the County to avoid unnecessary administrative delays and minimize costs applied to ratepayers.

Staff recommends that the City Council adopt a Resolution (Attachment 2) approving the Zero Tax Sharing Agreement between the City of Ukiah and the County of Mendocino for LAFCo File No. A-2025-06. Staff further recommends that the City Council authorize the Mayor and the City Manager to execute the Agreement on behalf of the City, and authorize Staff to transmit the Resolution and the executed Agreement to Mendocino LAFCo.

Recommended Action: Adopt a resolution approving a Zero Tax Sharing Agreement between the City of Ukiah and the County of Mendocino for the Ukiah Corporation Yard Annexation (1 Carousel Lane), LAFCo File No. A-2025-06.

BUDGET AMENDMENT REQUIRED: N/A
CURRENT BUDGET AMOUNT: $66,119.77
PROPOSED BUDGET AMOUNT: $0
FINANCING SOURCE: N/A
REVENUE: No GRANT: No
PREVIOUS CONTRACT/PURCHASE ORDER NO.: N/A
COORDINATED WITH:City Manager's Office; City Attorney
STRATEGIC PLAN (SP): N/A
CLIMATE INITIATIVES (CI): WR-1: Water Conservation and Reuse: Continue to implement wastewater recycling and water conservation projects and reduce per capita potable water consumption.

GENERAL PLAN ELEMENTS (GP): LU 7.2 (Annexation); ED 1.1 (Interagency Coordination)

COU. No.
1 MENDOCINO COUNTY

UKIAH CORPORATION YARD - TAX SHARING AGREEMENT
(1 Carousel Lane Annexation – APN 167-280-15; LAFCo File No. A-2025-06) THIS TAX SHARING AGREEMENT (this “Agreement”) is entered into by and between the County of Mendocino, a subdivision of the State of California (the “County”), and the City of Ukiah, a California municipal corporation (the “City”). The County and the City are sometimes referred to herein individually as a “Party” and collectively as the “Parties.” This Agreement is effective as of the date it is executed on behalf of the last Party to do so (the “Effective Date”).

RECITALS
WHEREAS, the Cortese-Knox-Hertzberg Local Government Reorganization Act of 2000 (the “CKH Act”) governs changes in organization, including annexations such as those contemplated in this Agreement, and which changes in organization must be approved by the Mendocino County Local Agency Formation Commission LAFCo (“Mendocino LAFCo” or “LAFCo”), and other local agencies; and
WHEREAS, the City has submitted an application to the Mendocino LAFCo to annex territory located at 1 Carousel Lane, Ukiah, California, Assessor’s Parcel Number 167-280-15, consisting of approximately

7.87 acres and improved with an approximately 98,000-square-foot industrial/commercial building (the “Annexation Area”); and
WHEREAS, for certain changes of organization, including annexations, Revenue and Taxation Code § 99 requires the City and the County to enter into an agreement providing for a property tax revenue exchange and to submit resolutions approving the agreement to LAFCo prior to consideration of the change of organization; and
WHEREAS, the Annexation Area is City-owned and used primarily for municipal/corporation yard functions, and any private possessory interest within the Annexation Area remains taxable and subject to assessment and allocation as provided by law; and
WHEREAS, on October 8, 2025, the City of Ukiah Planning Commission approved prezoning the Annexation Area as Public Facilities (PF) (PC Resolution No. 2025-04); and WHEREAS, on November 5, 2025, the Ukiah City Council introduced the annexation proposal, authorized submission of the annexation application to LAFCo, and adopted a Resolution of Application for the Corporation Yard Annexation; and
WHEREAS, on November 19, 2025, the Ukiah City Council adopted Ordinance No. 1263 which prezones the Annexation Area as Public Facilities (PF); and
WHEREAS, on November 20, 2025, LAFCo received the annexation proposal and assigned it LAFCo File No. A-2025-06; and
WHEREAS, the Parties desire to approve a stand-alone, annexation-specific tax sharing agreement providing for a zero (0) property tax exchange for the Annexation Area in order to satisfy the requirements of Revenue and Taxation Code § 99; and
WHEREAS, the Parties acknowledge that the County and the City have previously adopted a Mendocino County Master Tax Sharing Agreement but expressly agree that the Master Tax Sharing Agreement does not apply to this annexation.

AGREEMENT - LAFCO FILE NO. A-2025-06.

ATTACHMENT 1

COU. No.
2 NOW, THEREFORE, the Parties agree as follows:

1. Incorporation of Recitals
The above Recitals are true and correct and are hereby incorporated into this Agreement.

2. Definitions
The following terms, as used in this Agreement, shall have the meanings set forth below:
“Annexation” shall have the meaning set out in Government Code § 56017, or its successor, and shall include any reorganization that includes an annexation. “Annexation Area” shall mean the single parcel located at 1 Carousel Lane, Ukiah, California, Assessor’s Parcel Number 167-280-15, as more particularly described in Exhibit A. “Annexation Effective Date” shall mean the effective date of the annexation, as specified in LAFCo’s terms and conditions or by Government Code § 57202; provided, however, that such date occurs after the Effective Date of this Agreement.
“Annexor City” shall mean a City Party that is planning, pursuing, or has completed an Annexation.
“Annexed Tax Rate Area” (“ATRA” or “ATRAs”) shall mean any separate Tax Rate Area created for territory annexed after the Effective Date. “Distribution” shall mean the allocation and provision of property tax revenue between the Parties as provided for in this Agreement in order to satisfy the requirements of Revenue and Taxation Code § 99. “Property Tax Revenue” shall mean revenues derived from ad valorem taxes on real property and from other categories of secured and unsecured property taxes including and not necessarily limited to those described in the County's annual distribution as Current Secured General, Current Unsecured General, Prior Secured General, Prior Unsecured General, SB 813 Supplemental General, Highway Property Rental, and HOPTR General.
“RTC 99 Exchange” means the negotiated exchange (if any) of ad valorem property tax revenues between the County and the City required by Revenue and Taxation Code § 99 in connection with the Annexation, as approved by the Parties and submitted to LAFCo. “Sales Tax Revenue” shall only mean those taxes collected in accordance with the BradleyBurns Uniform Local Sales and Use Tax Law (“Bradley-Burns”). “State Action” shall mean any legislative, judicial, and/or voter-approved initiative action that limits a City's ability to apply a City-approved transaction and use tax to an Annexed Area. “Tax Rate Area” (“TRA” or “TRAs”) shall mean those base tax revenue and/or incremental tax revenues available from an identified area.

3. Tax Distribution LAFCO FILE NO. A-2025-06

3.1. Limited Scope. This Agreement applies only to the City and County shares of Property Tax Revenue within the Annexation Area for LAFCo File No. A-2025-06. This Agreement does not affect the allocation of property tax revenue for any other taxing entity.

3.2. No Master Agreement Application. This Agreement is separate and annexation specific. It does not amend, supersede, waive, or otherwise alter any rights or obligations under the Mendocino

COU. No.
3 County Master Tax Sharing Agreement for any other annexation or change of organization.

4. Tax Revenue Collection and Distribution.

4.1 Zero Exchange. Effective as of the Annexation Effective Date, the Parties agree that the exchange of ad valorem Property Tax Revenue between the City and the County pursuant to Revenue and Taxation Code § 99 for the Annexation Area shall be zero (0).

4.2 No Change to Existing Allocation Shares. The Parties intend that this Agreement does not change the City’s or County’s existing shares of Property Tax Revenue within the Annexation Area as determined under applicable law and the applicable tax rate area(s).

4.3 Implementation Direction. The Parties will implement this Agreement by ensuring that no additional or adjusted apportionment factors are applied between the County and the City for the Annexation Area solely as a result of LAFCo File No. A-2025-06.

5. Sales Tax and Housing Allocation

5.1 No Sales Tax Exchange. The Parties acknowledge that the Annexation Area is City-owned and used for public facilities/municipal purposes and does not generate Bradley-Burns local sales tax revenue under its current use. Accordingly, no sales tax exchange is required or created by this Agreement.

5.2 No RHNA/RHNP Adjustment Required. The Parties acknowledge the Annexation Area contains no residential uses under its current use and is not being annexed for residential development. Accordingly, no RHNA/RHNP adjustment is required as part of this Agreement.

6. Possessory Interests; Private Use

6.1 Taxability Preserved. Any private occupancy or private use within the Annexation Area (including leased or licensed space) remains subject to possessory interest assessment and taxation under applicable law.

6.2 No Special Exchange of Possessory Interest Revenues. Revenues derived from possessory interest assessments shall be levied, collected, and distributed in the ordinary course pursuant to law. This Agreement creates no additional exchange of such revenues.

6.3 No Amendment Needed for Routine Changes. The expansion, reduction, assignment, or termination of private occupancy shall adjust assessments and revenues pursuant to law and does not, by itself, require amendment of this Agreement.

7. Contingency; Change in Use

7.1 Contingency. This Agreement is contingent upon the Annexation becoming effective. If the Annexation does not become effective, this Agreement is void and of no further force.

7.2 Change in Use Trigger. If the City ceases to use the Annexation Area primarily for public facilities/municipal purposes, the Parties will meet and confer in good faith to determine whether a new agreement under Revenue and Taxation Code § 99 is required for any subsequent change of organization or continued City jurisdiction involving revenue-generating private use.

8. Implementation; Transmittals

COU. No.
4 8.1 Administrative Coordination. The City Manager (or designee) and the County Chief Executive Officer (or designee) are authorized to coordinate with the County Auditor-Controller, Assessor, and LAFCo to implement this Agreement.

8.2 Delivery to LAFCo. The Parties will provide their respective approving resolutions for this Agreement to LAFCo as required for LAFCo File No. A-2025-06.

9. Notices
To County:

County of Mendocino
Attn: Board Chair and Chief Executive Officer
501 Low Gap Road
Ukiah, CA 95482
Email: [email protected]
To City:

City of Ukiah
Attn: Mayor and City Manager
300 Seminary Avenue
Ukiah, CA 95482
Email: [email protected]
To LAFCO:

Mendocino LAFCo
ATTN: Executive Officer
200 S School St # 2, Ukiah, CA 95482
Email: [email protected]

10. No Third-Party Beneficiaries
This Agreement is for the benefit of the Parties only and does not create any rights in any third party.

11. Severability
If any provision of this Agreement is held invalid or unenforceable, the remaining provisions will remain in effect unless doing so would defeat the basic purpose of this Agreement.

12. Authority
Each Party represents that its legislative body has authorized execution of this Agreement and that the undersigned have authority to bind the Party on whose behalf they sign.

IN WITNESS WHEREOF, the Parties have executed this Agreement as of the Effective Date.

COUNTY OF MENDOCINO
Date: ______________________
Approved as to Form:

County Counsel
By: ________________________
Chair of the Board of Supervisors
Attest:
___________________
County Clerk

CITY OF UKIAH
Date: ______________________

COU. No.
5 Approved as to Form:

By: ________________________
Mayor
City Attorney
Attest:
___________________
City Clerk
Exhibit A: Draft Annexation Area Plat & Legal Description

EXHIBI T "A"
Legal Description
The Ci ty of Uki ah Annexati o n o f City Owned Property (LAFCo File No. ___ __ )
All that real property situated in the unincorporated area of Mendocino Count y, State of California, descri bed as follows :

AREA A:

Be ing a portion of Lot 140 of
lands of the City of Ukiah
Instrument Number 2025-05366,
as follows :

Healey ' s Survey and Map of Yokayo Rancho and being the de scribed in that certain Grant Deed recorded in
Mendocino County Records, more particularly described
COMMENCING at the National Geodetic Survey station, being a 3-1/ 4 " Aluminum Di sk marked CA DOT / 101 MEN 25 . 13; thence North 04°59 ' 34 " West, 14917 . 74 feet to the southwest corne r of the said City of Ukiah property and the POINT OF BEGI NNING; thence along the boundary of said City of Ukiah property the following twelve (12) courses :

1. North 04°05 ' 30 " East, 425.00 feet ;

2. South 79°09 ' 00 " East, 179.56 feet ;

3. North 44°19 ' 00 " East , 120.04 feet;

4. South 55°34 ' 00 " East, 182.98 feet;

5. South 68°36 ' 20 " East, 167 . 42 feet;

6. North 84°4 4 ' 40" East, 144 . 51 feet;
7 . South 53°15 ' 30 " East, 105 . 00 feet;

8. South 21° 48 ' 43 " West , 489.43 feet;
9 . From a tangent that bears South 66°29 ' 06 " West , along a curve to the right wi th a radius of 50.00 feet, a central angle of 50°12 ' 30 " and an arc length of 43.81 feet ;

10. North 63°18 ' 24 " West, 239.08 feet ;
11 . A~ong a curve to the left with a radius of 730 . 00 feet , a central angl e of 22°36 ' 06 " and an arc length of 287 .94 feet;
12 . North 85°54 ' 30 " West, 112.00 feet to the POI NT OF BEGINNING .

Area= 7 . 90 acres
AP 167- 280-15
The basis of b earings for this description is based on NAD83, California Coordinate System (CCS83) , Zone 2 (2010 . 00 epoch date) using the two found National Geodetic Sur vey monuments designated "101 MEN 25 . 13" and "HPGN D CA 01 CG" said bearing South 05°01 ' 58 " East, shown on Exhibit "A" , attached hereto and made a part hereof . ., The purpose of this description is for annexation purposes and to compy with the State Board of Equalization ' s "Written Legal (geodetic) Description Requirements " .

This description is to be used to establish geodetic position only and is not intended to establish property ownership .

Ron W. Franz L. S . 7173 Dated

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1 RESOLUTION NO. 2026-XX

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF UKIAH APPROVING A ZERO TAX

SHARING AGREEMENT WITH THE COUNTY OF MENDOCINO IN SUPPORT OF THE UKIAH CORPORATION YARD ANNEXATION (1 CAROUSEL LANE), LAFCO FILE NO. A-2025-06 WHEREAS:

1. The City Council of the City of Ukiah (“City”) desires to annex certain real property located at 1 Carousel Lane, Ukiah, California, identified as Assessor’s Parcel Number 167-280-15 (the “Annexation Area”); and

2. The proposed annexation has been submitted to the Mendocino County Local Agency Formation Commission (“LAFCo”) and has been assigned LAFCo File No. A-2025-06; and

3. California Revenue and Taxation Code § 99 requires the City and the County of Mendocino (“County”) to enter into an agreement providing for an exchange of property tax revenues in connection with the annexation; and

4. The City proposes a Tax Sharing Agreement providing for a zero percent (0%) exchange of property tax revenues for the Annexation Area, consistent with applicable law; and

5. The proposed Tax Sharing Agreement applies solely to the City and County shares of property tax revenue generated within the Annexation Area and does not affect the allocation of property tax revenues for any other taxing entity; and

6. The proposed Tax Sharing Agreement is annexation-specific and is not intended to amend, supersede, waive, or otherwise alter any rights or obligations of the City or the County under the Mendocino County Master Tax Sharing Agreement or any other agreement applicable to separate annexations or changes of organization; and

7. The City Council has reviewed the Tax Sharing Agreement entitled “Mendocino County – Ukiah Corporation Yard Tax Sharing Agreement (1 Carousel Lane Annexation – APN 167-280-15; LAFCo File No. A-2025-06)”, attached hereto as Exhibit A.

NOW, THEREFORE, BE IT RESOLVED that:

1. Approval. The City Council hereby approves the Tax Sharing Agreement between the City of Ukiah and the County of Mendocino for LAFCo File No. A-2025-06, in substantially the form presented to the City Council and attached as Exhibit A.

2. Execution Authority. The Mayor and the City Manager, or either of them, are hereby authorized and directed to execute the Tax Sharing Agreement on behalf of the City, subject to approval as to form by the City Attorney.

3. Implementation. City staff are authorized and directed to transmit this Resolution and the executed Tax Sharing Agreement to LAFCo and to take all actions necessary to carry out and ATTACHMENT 2

2 implement the Agreement.

PASSED AND ADOPTED this 4
th day of February, 2026, by the following roll call vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

Susan Sher, Mayor
ATTEST:

Kristine Lawler, City Clerk
Exhibit A: Mendocino County- Ukiah Corporation Yard - Tax Sharing Agreement

COU. No.
1 MENDOCINO COUNTY

UKIAH CORPORATION YARD - TAX SHARING AGREEMENT
(1 Carousel Lane Annexation – APN 167-280-15; LAFCo File No. A-2025-06) THIS TAX SHARING AGREEMENT (this “Agreement”) is entered into by and between the County of Mendocino, a subdivision of the State of California (the “County”), and the City of Ukiah, a California municipal corporation (the “City”). The County and the City are sometimes referred to herein individually as a “Party” and collectively as the “Parties.” This Agreement is effective as of the date it is executed on behalf of the last Party to do so (the “Effective Date”).

RECITALS
WHEREAS, the Cortese-Knox-Hertzberg Local Government Reorganization Act of 2000 (the “CKH Act”) governs changes in organization, including annexations such as those contemplated in this Agreement, and which changes in organization must be approved by the Mendocino County Local Agency Formation Commission LAFCo (“Mendocino LAFCo” or “LAFCo”), and other local agencies; and
WHEREAS, the City has submitted an application to the Mendocino LAFCo to annex territory located at 1 Carousel Lane, Ukiah, California, Assessor’s Parcel Number 167-280-15, consisting of approximately

7.87 acres and improved with an approximately 98,000-square-foot industrial/commercial building (the “Annexation Area”); and
WHEREAS, for certain changes of organization, including annexations, Revenue and Taxation Code § 99 requires the City and the County to enter into an agreement providing for a property tax revenue exchange and to submit resolutions approving the agreement to LAFCo prior to consideration of the change of organization; and
WHEREAS, the Annexation Area is City-owned and used primarily for municipal/corporation yard functions, and any private possessory interest within the Annexation Area remains taxable and subject to assessment and allocation as provided by law; and
WHEREAS, on October 8, 2025, the City of Ukiah Planning Commission approved prezoning the Annexation Area as Public Facilities (PF) (PC Resolution No. 2025-04); and WHEREAS, on November 5, 2025, the Ukiah City Council introduced the annexation proposal, authorized submission of the annexation application to LAFCo, and adopted a Resolution of Application for the Corporation Yard Annexation; and
WHEREAS, on November 19, 2025, the Ukiah City Council adopted Ordinance No. 1263 which prezones the Annexation Area as Public Facilities (PF); and
WHEREAS, on November 20, 2025, LAFCo received the annexation proposal and assigned it LAFCo File No. A-2025-06; and
WHEREAS, the Parties desire to approve a stand-alone, annexation-specific tax sharing agreement providing for a zero (0) property tax exchange for the Annexation Area in order to satisfy the requirements of Revenue and Taxation Code § 99; and
WHEREAS, the Parties acknowledge that the County and the City have previously adopted a Mendocino County Master Tax Sharing Agreement but expressly agree that the Master Tax Sharing Agreement does not apply to this annexation.

AGREEMENT - LAFCO FILE NO. A-2025-06.

EXHIBIT A

COU. No.
2 NOW, THEREFORE, the Parties agree as follows:

1. Incorporation of Recitals
The above Recitals are true and correct and are hereby incorporated into this Agreement.

2. Definitions
The following terms, as used in this Agreement, shall have the meanings set forth below:
“Annexation” shall have the meaning set out in Government Code § 56017, or its successor, and shall include any reorganization that includes an annexation. “Annexation Area” shall mean the single parcel located at 1 Carousel Lane, Ukiah, California, Assessor’s Parcel Number 167-280-15, as more particularly described in Exhibit A. “Annexation Effective Date” shall mean the effective date of the annexation, as specified in LAFCo’s terms and conditions or by Government Code § 57202; provided, however, that such date occurs after the Effective Date of this Agreement.
“Annexor City” shall mean a City Party that is planning, pursuing, or has completed an Annexation.
“Annexed Tax Rate Area” (“ATRA” or “ATRAs”) shall mean any separate Tax Rate Area created for territory annexed after the Effective Date. “Distribution” shall mean the allocation and provision of property tax revenue between the Parties as provided for in this Agreement in order to satisfy the requirements of Revenue and Taxation Code § 99. “Property Tax Revenue” shall mean revenues derived from ad valorem taxes on real property and from other categories of secured and unsecured property taxes including and not necessarily limited to those described in the County's annual distribution as Current Secured General, Current Unsecured General, Prior Secured General, Prior Unsecured General, SB 813 Supplemental General, Highway Property Rental, and HOPTR General.
“RTC 99 Exchange” means the negotiated exchange (if any) of ad valorem property tax revenues between the County and the City required by Revenue and Taxation Code § 99 in connection with the Annexation, as approved by the Parties and submitted to LAFCo. “Sales Tax Revenue” shall only mean those taxes collected in accordance with the BradleyBurns Uniform Local Sales and Use Tax Law (“Bradley-Burns”). “State Action” shall mean any legislative, judicial, and/or voter-approved initiative action that limits a City's ability to apply a City-approved transaction and use tax to an Annexed Area. “Tax Rate Area” (“TRA” or “TRAs”) shall mean those base tax revenue and/or incremental tax revenues available from an identified area.

3. Tax Distribution LAFCO FILE NO. A-2025-06

3.1. Limited Scope. This Agreement applies only to the City and County shares of Property Tax Revenue within the Annexation Area for LAFCo File No. A-2025-06. This Agreement does not affect the allocation of property tax revenue for any other taxing entity.

3.2. No Master Agreement Application. This Agreement is separate and annexation specific. It does not amend, supersede, waive, or otherwise alter any rights or obligations under the Mendocino

COU. No.
3 County Master Tax Sharing Agreement for any other annexation or change of organization.

4. Tax Revenue Collection and Distribution.

4.1 Zero Exchange. Effective as of the Annexation Effective Date, the Parties agree that the exchange of ad valorem Property Tax Revenue between the City and the County pursuant to Revenue and Taxation Code § 99 for the Annexation Area shall be zero (0).

4.2 No Change to Existing Allocation Shares. The Parties intend that this Agreement does not change the City’s or County’s existing shares of Property Tax Revenue within the Annexation Area as determined under applicable law and the applicable tax rate area(s).

4.3 Implementation Direction. The Parties will implement this Agreement by ensuring that no additional or adjusted apportionment factors are applied between the County and the City for the Annexation Area solely as a result of LAFCo File No. A-2025-06.

5. Sales Tax and Housing Allocation

5.1 No Sales Tax Exchange. The Parties acknowledge that the Annexation Area is City-owned and used for public facilities/municipal purposes and does not generate Bradley-Burns local sales tax revenue under its current use. Accordingly, no sales tax exchange is required or created by this Agreement.

5.2 No RHNA/RHNP Adjustment Required. The Parties acknowledge the Annexation Area contains no residential uses under its current use and is not being annexed for residential development. Accordingly, no RHNA/RHNP adjustment is required as part of this Agreement.

6. Possessory Interests; Private Use

6.1 Taxability Preserved. Any private occupancy or private use within the Annexation Area (including leased or licensed space) remains subject to possessory interest assessment and taxation under applicable law.

6.2 No Special Exchange of Possessory Interest Revenues. Revenues derived from possessory interest assessments shall be levied, collected, and distributed in the ordinary course pursuant to law. This Agreement creates no additional exchange of such revenues.

6.3 No Amendment Needed for Routine Changes. The expansion, reduction, assignment, or termination of private occupancy shall adjust assessments and revenues pursuant to law and does not, by itself, require amendment of this Agreement.

7. Contingency; Change in Use

7.1 Contingency. This Agreement is contingent upon the Annexation becoming effective. If the Annexation does not become effective, this Agreement is void and of no further force.

7.2 Change in Use Trigger. If the City ceases to use the Annexation Area primarily for public facilities/municipal purposes, the Parties will meet and confer in good faith to determine whether a new agreement under Revenue and Taxation Code § 99 is required for any subsequent change of organization or continued City jurisdiction involving revenue-generating private use.

8. Implementation; Transmittals

COU. No.
4 8.1 Administrative Coordination. The City Manager (or designee) and the County Chief Executive Officer (or designee) are authorized to coordinate with the County Auditor-Controller, Assessor, and LAFCo to implement this Agreement.

8.2 Delivery to LAFCo. The Parties will provide their respective approving resolutions for this Agreement to LAFCo as required for LAFCo File No. A-2025-06.

9. Notices
To County:

County of Mendocino
Attn: Board Chair and Chief Executive Officer
501 Low Gap Road
Ukiah, CA 95482
Email: [email protected]
To City:

City of Ukiah
Attn: Mayor and City Manager
300 Seminary Avenue
Ukiah, CA 95482
Email: [email protected]
To LAFCO:

Mendocino LAFCo
ATTN: Executive Officer
200 S School St # 2, Ukiah, CA 95482
Email: [email protected]

10. No Third-Party Beneficiaries
This Agreement is for the benefit of the Parties only and does not create any rights in any third party.

11. Severability
If any provision of this Agreement is held invalid or unenforceable, the remaining provisions will remain in effect unless doing so would defeat the basic purpose of this Agreement.

12. Authority
Each Party represents that its legislative body has authorized execution of this Agreement and that the undersigned have authority to bind the Party on whose behalf they sign.

IN WITNESS WHEREOF, the Parties have executed this Agreement as of the Effective Date.

COUNTY OF MENDOCINO
Date: ______________________
Approved as to Form:

County Counsel
By: ________________________
Chair of the Board of Supervisors
Attest:
___________________
County Clerk

CITY OF UKIAH
Date: ______________________

COU. No.
5 Approved as to Form:

By: ________________________
Mayor
City Attorney
Attest:
___________________
City Clerk
Exhibit A: Draft Annexation Area Plat

EXHIBI T "A"
Legal Description
The Ci ty of Uki ah Annexati o n o f City Owned Property (LAFCo File No. ___ __ )
All that real property situated in the unincorporated area of Mendocino Count y, State of California, descri bed as follows :

AREA A:

Be ing a portion of Lot 140 of
lands of the City of Ukiah
Instrument Number 2025-05366,
as follows :

Healey ' s Survey and Map of Yokayo Rancho and being the de scribed in that certain Grant Deed recorded in
Mendocino County Records, more particularly described
COMMENCING at the National Geodetic Survey station, being a 3-1/ 4 " Aluminum Di sk marked CA DOT / 101 MEN 25 . 13; thence North 04°59 ' 34 " West, 14917 . 74 feet to the southwest corne r of the said City of Ukiah property and the POINT OF BEGI NNING; thence along the boundary of said City of Ukiah property the following twelve (12) courses :

1. North 04°05 ' 30 " East, 425.00 feet ;

2. South 79°09 ' 00 " East, 179.56 feet ;

3. North 44°19 ' 00 " East , 120.04 feet;

4. South 55°34 ' 00 " East, 182.98 feet;

5. South 68°36 ' 20 " East, 167 . 42 feet;

6. North 84°4 4 ' 40" East, 144 . 51 feet;
7 . South 53°15 ' 30 " East, 105 . 00 feet;

8. South 21° 48 ' 43 " West , 489.43 feet;
9 . From a tangent that bears South 66°29 ' 06 " West , along a curve to the right wi th a radius of 50.00 feet, a central angle of 50°12 ' 30 " and an arc length of 43.81 feet ;

10. North 63°18 ' 24 " West, 239.08 feet ;
11 . A~ong a curve to the left with a radius of 730 . 00 feet , a central angl e of 22°36 ' 06 " and an arc length of 287 .94 feet;
12 . North 85°54 ' 30 " West, 112.00 feet to the POI NT OF BEGINNING .

Area= 7 . 90 acres
AP 167- 280-15
The basis of b earings for this description is based on NAD83, California Coordinate System (CCS83) , Zone 2 (2010 . 00 epoch date) using the two found National Geodetic Sur vey monuments designated "101 MEN 25 . 13" and "HPGN D CA 01 CG" said bearing South 05°01 ' 58 " East, shown on Exhibit "A" , attached hereto and made a part hereof . ., The purpose of this description is for annexation purposes and to compy with the State Board of Equalization ' s "Written Legal (geodetic) Description Requirements " .

This description is to be used to establish geodetic position only and is not intended to establish property ownership .

Ron W. Franz L. S . 7173 Dated

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Agenda Item No: 14.c.

MEETING DATE/TIME: 2/4/2026

ITEM NO: 2026-60

AGENDA SUMMARY REPORT
SUBJECT: Consideration of Rejection of Low Bid from Cimarron and Award Bid to Perennial Energy, LLC in the Amount of $418,394.61 for the Landfill Gas Ground Flare Station.

DEPARTMENT: Public Works PREPARED BY: Seth Strader, Public Works Management Analyst II PRESENTER: Tim Eriksen, Pubic Works Director/City Engineer ATTACHMENTS:

1. Bid Tabulation RFB E41141

2. Cimarron Energy Bid

3. Perennial Energy Bid
Summary: Council will consider rejecting the low bid from Cimarron and awarding the bid to Perennial Energy, LLC in the amount of $418,394.61 for the purchase of the Landfill Gas Ground Flare Station.

Background: The City of Ukiah Landfill is a closed municipal solid waste landfill subject to state and local landfill gas control requirements. As organic waste decomposes within a closed landfill, it generates landfill gas, which is primarily composed of methane and carbon dioxide. Methane is a potent greenhouse gas and, if not properly controlled, can pose environmental, safety, and regulatory concerns.

A landfill gas flare is a controlled combustion device designed to safely destroy landfill gas by burning it at high temperatures. The enclosed flare system proposed for the Ukiah Landfill combusts landfill gas in a controlled environment, significantly reducing methane emissions and ensuring compliance with applicable air quality regulations. Installation and operation of a landfill gas collection and control system at the Ukiah Landfill, including a flare, is required under Assembly Bill 32 and is part of the approved Final Closure Design.

Discussion: The Request for Bids was released on December 3, 2025, and the City received three bids for this project (Attachment 1). The low bid received was from Cimarron (Attachment 2) for the amount of $322,269.19 and the second lowest bid was from Perennial Energy, LLC for the amount of $418,394.61 (Attachment 3).

During Staff and engineer review of the bids received for the Landfill Gas Ground Flare Station, the lowest bid submitted by Cimarron was determined to be non-responsive to the bid specifications. Specifically, Cimarron’s proposal indicates that supplemental fuel would be required to operate the flare when landfill gas methane concentrations fall below approximately 35 percent. Section 1.03(A)(1) of the Specifications expressly requires that the flare system be capable of meeting minimum operating temperature requirements and maintaining compliance with all specified emission and destruction/reduction efficiency (DRE) limits for NOx, CO, NMOC, and methane without the use of supplemental fuel. Reliance on supplemental fuel to meet these performance requirements constitutes a material deviation from the Specifications.

Additionally, the Request for Bids does not permit alternatives that fail to meet the minimum performance criteria set forth in the Specifications. The proposed use of supplemental fuel to sustain required operating temperatures at lower methane concentrations does not satisfy the requirement that emissions compliance be achieved without supplemental fuel and would result in ongoing operational costs to the City. Based on these factors, and consistent with the project engineer’s determination, Cimarron’s bid does not comply with the

express requirements of the Specifications and was therefore deemed non-responsive.

Staff recommends that the City Council reject the low bid submitted by Cimarron and award the bid to Perennial Energy, LLC in the amount of $418,394.61.

Recommended Action: Reject low bid from Cimarron and award bid to Perennial Energy, LLC in the amount of $418,394.61 for the Landfill Gas Ground Flare Station.

BUDGET AMENDMENT REQUIRED: No
CURRENT BUDGET AMOUNT: 70224500.80230.18025: $10,343,287 PROPOSED BUDGET AMOUNT: N/A
FINANCING SOURCE: Landfill Closure Funds
REVENUE: No GRANT: No
PREVIOUS CONTRACT/PURCHASE ORDER NO.: N/A
COORDINATED WITH: Myles Fisette, Purchasing Manager; Jason Benson, Senior Engineer; Tim Eriksen, Director of Public Works/City Engineer
STRATEGIC PLAN (SP):N/A
CLIMATE INITIATIVES (CI):N/A
GENERAL PLAN ELEMENTS (GP): N/A

ITEM # ITEM DESCRIPTION QTY UNIT TOTAL UNIT TOTAL UNIT TOTAL Enclosed Landfill Gas Ground Flare
Station As Per Equipment Specification
E41141
1 $ 285,850.00 $ 285,850.00 $ 366,328.00 $ 366,328.00 $ 407,000.00 $ 407,000.00 SUBTOTAL $ 285,850.00 $ 366,328.00 $ 407,000.00
TAX $ 25,369.19 $ 32,511.61 $ 36,121.25
FREIGHT $ 11,050.00 $ 19,555.00 $ 10,000.00
GRAND TOTAL $ 322,269.19 $ 418,394.61 $ 453,121.25
Lead Time 24 Weeks ARAD 44-55 Weeks 26-30 Weeks
RFB E41141 Enclosed Landfill Gas Ground Flare Station
BIDS DUE 1/7/2026

PRODUCT RECOVERY MANAGMENT

BUTNER, NC

CIMARRON ENERGY

TULSA, OK

PERENNIAL ENERGY

WEST PLAIN, MO
Attachment 1

DATE: 12/3/2025
Bids may be emailed, faxed, or hand delivered, to the contact information listed REQ. NO. E41141 herein, and by the specified deadline, or the bid will be rejected.

Submitted by:

BIDS WILL BE RECEIVED UNTIL
5:00 p.m., -DQXDU\th, 202
(Company Name AT THE OFFICE OF THE PURCHASING MANAGER
& Address) 411 W CLAY ST. CITY of UKIAH
BY: Myles Fisette
Email: [email protected]
BIDS ARE REQUESTED FOR THE FOLLOWING ITEMS:

QUANTITY DESCRIPTION UNIT PRICE EXTENDED PRICE
1 Enclosed Landfill Gas Ground Flare Station
As Per attached Equipment Specification E41141.

Insurance requirements include with attached specification as Attachment C Bids received after the date and time specified above will be rejected Tax (8.875 %):

Shipping:

TOTAL:

Payment Terms: N30

1. LOCAL PREFERENCE: Local Vendors shall be given an allowance of five percent (5%), up to a maximum allowance of $2,500, on any bid for supplies, equipment and/or materials per Ukiah City Code Section 1522.D.4. A Local Vendor is defined as one which, 1) conducts business in an office or other business premises with a physical location in Mendocino County, 2) holds a valid business license issued by Mendocino County or one of the cities in Mendocino County for that business location, and 3) has conducted business in compliance with 1) and 2) for not less than six (6) months prior to requesting the preference. The City shall receive satisfactory proof that a business qualifies as a local vendor before it may receive the local preference. In the event that there is a tie bid, where one bidder is local, the other is not, and the bid is equal in price and quality, the award shall go to the Local Vendor.

2. Right is reserved to reject any and all bids.

3. Right is reserved to accept separate items unless specifically denied by bidder.

4. Right is reserved to reject a bid from any bidder who has previously failed to perform adequately for the City of Ukiah.

5. In CASE OF DEFAULT, the City of Ukiah may procure the items quoted on from other sources and hold the original bidder liable for any increased costs.

6. The price, terms, delivery point, and delivery date may individually or collectively be the basis of the awarding of the bid.

7. In submitting the bid, bidder agrees that the bid shall remain open and may not be revoked or withdrawn for 60 days from the bid due date, unless a different time period is specified in RFB.

8. Bidder agrees to perform according to its bid, if the City's acceptance is communicated to the bidder within the time specified in number 7 above.

ALL BIDS SHALL BE F.O.B. UKIAH, CA.

TERMS:

SIGNATURE:

PRINT NAME:

DATE:

PHONE:

LEAD TIME ARO :

EMAIL:

REQUEST FOR BID
UKIAH, CALIFORNIA 95482
P: (707) 463-6225
300 SEMINARY AVENUE
PAGE 1 OF 1
Nicholas Ackley
7718 E 91st Street Suite 200 Tulsa,
Oklahoma 74133
Bid price reflects Cimarron's price in Proposal 26269 including the startup and commissioning and shipping to jobsite optional items. This price does not consider the optional adder for Gardner Denver blowers which cannot meet turndown. Please see Proposal Section 5 for proposal clarifications.
$285,850 $285,850
$25,369
$11,050
$322,269
Nicholas Ackley
06JAN26
302-507-6701 [email protected]
24 Weeks ARAD
Attachment 2

`
Firm Proposal
City of Ukiah
01/05/2025

Quote: 26269 Rev 0, 1/6/2026 www.cimarron.com Page 2
Customer: City of Ukiah
Reference: City of Ukiah Landfill - 110 SCFM GCCS + FEF I am pleased to offer the following firm proposal for your consideration for the above referenced application.

Thank you for considering Cimarron for this project and we are looking forward to working with you.

Headquartered in Houston, TX, with operations worldwide, we offer products and services with the mission of reducing greenhouse gas emissions for all markets as well as enabling our energy customers to safely and responsibly optimize hydrocarbon production, transportation, processing and storage through best-in-class solutions.

Please contact me if you have any questions or require additional information.

Regards,
Nicholas Ackley
Biogas Sales Manager
Mobile: 302.507.6701
[email protected]
Brayden Brown
Applications Engineer
[email protected]
Products and Services
Emissions Control Oil and Gas Processing Services
Vapor Recovery Units:
• Compression-base: Screw, Vane
Compressors, Plunger Lift Pumps
• Activated Carbon-based Vapor
Recovery Systems
Enclosed Combustion:
• Quad O Combustors (98% DRE),
Thermal Oxidizers, Vapor Combustion
Units (99.9% DRE), CEB™ (99.99% DRE,
low NOx)
• Biogas/RNG Combustion Units
Smokeless Flares:
• High Efficiency Assisted (air, steam,
gas), Utility, Derrick, Ground Flares,
DreamDuo.

Production and processing:
• Modular Production Packages
• Separator
• Gas Filtration
• Glycol Dehydration
• BTEX Eliminators
• Gas Production Units
• Oil and Gas Heaters
• Heater Treaters
• Vapor Recovery Towers
• Plunger Lift Pumps
• Engineering Studies
Field Services:
• Startup & Maintenance
• Spare parts
• Lease/Rentals
• LDAR Detection
• Emissions Consultation
Automation:
• Burner Management
Systems
• Emissions Control Real-time
Monitoring
• DRE optimization (DREMax™)
• Sytelink 360 Optilink
Markets
Upstream: Wellhead Oil and Gas Handling Production equipment, Vapor Recovery, Emissions Reduction and Destruction, Monitoring, Service and Preventative Maintenance Midstream: Gas Processing applications, Dehydration, Fuel Gas Conditioning, Compressor Station, Service Downstream: Loading Terminal Vapor Combustors, Carbon Vapor Recovery, Refinery Expanded Focus Areas for Combustion Applications: Biogas, Agricultural, Landfill, Wastewater Treatment, Coal Mines, Industrial, Aerospace
Need Parts? Call the Cimarron Parts Hotline 800-246-8208

Quote: 26269 Rev 0, 1/6/2026 www.cimarron.com Page 3

1.0 Commercial

1.1 Base Item Pricing/Delivery
Item Description Qty Price
(Total)
Delivery
(weeks ARAD)
1-24 FEF-36 x 30 FT OAH 1 $ 275,950.00 24
25 Startup and Commissioning 1 $ 9,900.00 24
26 DAP Shipping to Ukiah, CA 1 $ 11,050.00 24
27 Price Adder to Utilize Gardner
Denver Model 310 7.5 HP Blowers 1 $ 61,000.00 24

1.2 Price Validity
The prices in this quotation are firm and fixed for 2 weeks.

Mar 2025 Update: Due to tariff uncertainty, proposal validity is 2 weeks.

1.3 Terms / Delivery
Delivery Schedule
Description Delivery
Documentation Schedule See Section 4
Fabrication
Total Delivery Time (ARAD) 24 weeks
Terms/Delivery
Ex-works: Point of Manufacture
Deliveries quoted EXW are estimated. EXW location and delivery to be confirmed upon request or order placement. Standard terms and conditions apply.

Online T&Cs Link: https://cimarron.com/terms-and-conditions-v16-16-jan-2025/ Progress Payments
Description Percent
Upon Order Acceptance 25%
Upon Submittal of General Arrangement Drawings 25%
Upon Order of Combustion Chamber(s) 35%
Upon Notification of Readiness to Ship 15%

Quote: 26269 Rev 0, 1/6/2026 www.cimarron.com Page 4
Additional Notes

1. The quoted delivery is based upon our current production schedule / shop load. An updated delivery schedule will be available at time of order.

2. If Cimarron does not receive approval for construction within 5 days of initial approval drawing submittal, the production schedule will be subject to change based upon shop load.

3. See section 4.0 for list of approval drawings.

4. ARAD, After Receipt of Approved Drawings, is defined as the date the customer has approved all project specific approval drawings for the products purchased as described in this proposal. The customer is allowed five business days to review drawings after submitted by Cimarron for approval before delivery dates are subject to change.

5. ARO, After Receipt of Order is defined as the date where the order has been accepted by both customer and Cimarron. Quoted Lead Time includes five business days for customer to review drawings after submitted by Cimarron for approval before delivery dates are subject to change.

6. Payment terms are only valid as long as client is approved for credit by Cimarron’s financial institution. Three credit references and financial statements may be requested for this purpose.

Quote: 26269 Rev 0, 1/6/2026 www.cimarron.com Page 5

2.0 Technical

2.1 Process Conditions
Please take your time to carefully review the design conditions stated above and notify flare industries immediately if any condition does not match your latest requirements. This will help us to reduce turnaround time while providing you a better service, thank you.

Landfill Gas
Methane 20 to 50 vol%
Carbon Dioxide 20 to 50 vol%
Oxygen 0 to 5 vol%
Nitrogen 0 to 35 vol%
Trace Components 0 to 1 vol%
Inlet Temperature (°F) 100
Inlet Pressure -35 In W.C.

Relative Humidity Saturated
Site Elevation 705 ft AMSL
Design Analysis
Minimum Pressure Required 20 in WC
Maximum Flow Rate Per
Unit 110 scfm
Minimum Flow Rate Per
Unit 11 scfm
Unit Selected FEF-36
Required Number of Units 1
Calculated Lower Heating
Value (LHV) 180 - 455 Btu/scf
Required Pilot Gas- Natural
Gas 60 SCFH
Hazardous Area
Classification (Within 3 feet
of any gas containing pipe
or device)
Explosion-Proof: Class 1, Division 2
Electrical Equipment
Hazardous Area
Classification
Unclassified

2.2 GUARANTEED EMISSIONS
Emission Guarantees for FEF (Fully Enclosed Flare)
NOx Emissions @ 3% O2 lb/MMBtu < .06
CO Emissions @ 3% O2 lb/MMBtu < .2

Quote: 26269 Rev 0, 1/6/2026 www.cimarron.com Page 6

2.3 Technical Specifications

2.3.1 Base Scope of Supply
Item Qty FEF-36
1 1 Combustion Chamber
• 36 Inch Outer Diameter X 30 Ft Long Combustion Chamber • (3) Type K Thermocouples for Temperature Control and Shutdown • (2) 4” NPT Test Ports on the Exhaust Stack- Oriented 90 Deg Apart • Natural Draft Via Combustion Air Dampers With 120 VAC Motorized Actuator • 316 SS Rain Shield on the Top Stack for Ceramic Fiber Protection • Two (2) Lifting Lugs
• Stainless Steel 150# RF Inlet Nozzle
• Material Of Construction:
• Flare Stack Shell: A36 Carbon Steel
• Heat Shield
• NEMA 4 Junction Box Mounted to Flare
• Base Plat
• Stack Paint:
➢ Surface Prep: SSPC-SP6
➢ Primer: SW Zinc Clad II, Inorganic Zinc, DFT (Mils): 2.0-4.0, COLOR: TBD ➢ Topcoat: High Temp Paint, COLOR: TBD (Top 5 Feet to be Black) • Stand Paint:
➢ Surface Prep: SSPC-SP6
➢ Primer: SW Zinc Clad 4100, Organic Zinc, DFT (Mils): 2.0-4.0, COLOR: TBD ➢ Topcoat: Acrylic Polyurethane, COLOR: TBD
• Stack Insulation Details:
➢ Durablanket S (Or Equal) Ceramic Fiber 2300F
➢ 8# Density Fiber Blanket - (2) 1" Layers With
➢ Hanlok Hl-114 (Or Equal) 310 SS Pins & Keepers
• Floor Insulation Details:
➢ Modules – 2300F 2" Thick Ceramic Module (Anchor-Loc 2200) 10 lb/ft3 Density 2 1 Internal Burner Assembly
• Vertically Fired Burner Assembly
• 316 Stainless Steel Piping
• Burner Material: 316 Stainless Steel With 310 Burner Retention ➢ Burner Flame to be Verified Via Honeywell UV Scanner
3 1 Purge Air Blower
• Premium Efficiency 1 Hp Blower, 1800 Rpm, TEFC Motor Rated General Purpose • Controlled By Motor Starter – Ship Loose to Be Installed in Field • Electric Supply: 120 VAC/ 1 Ph / 60 Hz
• Flow Switch Across Blower

Quote: 26269 Rev 0, 1/6/2026 www.cimarron.com Page 7
4 1 KH-1000 Series Pilots and Ignition System –
• Ignition Transformer Installed in a NEMA 4 Enclosure
• Ignition Electrode
• Pilot Is Verified Via UV Scanner
• Materials: 310 SS Head / 316 SS Body
5 1 Automatic Damper Assembly
• Fully Adjustable Air Dampers
• Motor Operated Louver
• Preliminary Sizing 36” X 36”
• Hinged Damper for Stack Access
6 1 3” Emergency Shut-Off Valve:
• Upstream Of Arrestor
• Butterfly Valve
• Pneumatic Actuated
• Spring Fail Close
• 3” X 150# Rf Flange Connection
• Carbon Steel Body
• Disk – Stainless Steel
• Seat And Seals – Viton
• Includes Two (2) 60 ft3 Nitrogen Tanks with Regulator and Manual Isolation Valve with Bottle Rack
• Shipped Loose to Be Installed by Others
7 1 3” Flame Arrestor
• Aluminum Housing / Aluminum Internals
• Eccentric Design
• 3” Flanged Connections for In-Line Installation
• To Be Installed at Inlet Nozzle
• Equipped with Differential Pressure Transmitter
• Shipped Loose to Be Installed by Others
8 1 ½” Pilot Gas Valve Rack
• (1) Aluminum Body Pressure Regulator
• (1) Manual Isolation Ball Valve
• (1) Y-Strainer
• (1) Pressure Gauge
• (1) Shutoff Solenoid Valve
• 1/2 Inch Carbon Steel Piping and Fittings
• Mounted on Independent rack, sized and plumbed to accommodate 2 (two) customer supplied 5-gallon propane cylinders (1duty, 1spare)
9 1 Assist Gas Valve Train Required for Methane Below 35% - Max Propane Consumption: 8 SCFM • 3/4” NPT Carbon Steel Assist Gas Valve Train To Include:
• One (1) 3/4” NPT Manual Isolation Valve
• One (1) 3/4” NPT Pressure Regulator W/ Downstream Pressure Gauge • One (1) 3/4” Solenoid Shut Off Valve
• Customer to Provide either Propane or Natural Gas at 5 PSIG

Quote: 26269 Rev 0, 1/6/2026 www.cimarron.com Page 8
10 1 Flowmeter with Integrated Transmitter
• Thermal Instruments Model 62-9/9500P or equal
• Mass Flow Meter
• Instantaneous Flow Rate and Totalized Flow Volume Display • Flow Element: 350 °F, 316L Stainless Steel
• Integrated Transmitter
• 3/4 Inch MNPT Process Connection
• 24 VDC
• Transmitter Outputs: (2) 4-20 mA Analog: HART
• Custom Calibration
• Prewired Upstream of Flare Stack
11 1 Control Stand
• Carbon Steel Stand
• Pilot Gas Valve Train
• NEMA 4 Control Panel
• Shipped Loose to Be Installed by Others in Unclassified Area 12 1 Automatic Control System for Combustion Operation
• Fully Integrated Control Panel Rated for General Purpose - Unclassified • Swing Out Panel
• NEMA 4 Enclosure
• Electric Supply: 120 VAC / 60 Hz / 1 Ph
• Allen Bradley Compact Logix PLC
• Touchscreen HMI
• Enclosure Equipped with Pushbuttons and Lights
• Weather Hood extending out 3 feet in front and 1 foot on both sides • Ethernet Communication to Company PLC
• Automatic Control System for Combustion Operation
• Surge Protection Device
• Auto-Dialer
• UPS Battery backup to provide a minimum 3 minutes of backup power • UL Classification
• Shipped Installed on the Control Stand, Interconnect Wiring by Others 13 2 100% Biogas Extraction Blowers:
• Rated for 110 SCFM (Maximum flow)
• National Turbine Blowers
• 5 HP Motor
• Minimum Inlet Pressure: -35 in. w.c.
• Outlet Pressure: 20 in. w.c.
• 3 Inch Inlet, 3 Inch Expansion Joint
• 3 Inch Outlet, 3 Inch Expansion Joint
• Class 1, Division 2, Group D
• VFD Compatible Motor
• Blower Bearing Vibration Transmitters
• Discharge Temperature Gauge
14 2 Biogas Extraction Blower Inlet Butterfly Valve:
• 3” Inch x 150# Flange Connection
• Gear Operated
• Lug Type

Quote: 26269 Rev 0, 1/6/2026 www.cimarron.com Page 9
• Disc and Stem – Nickel Plated
• Buna Seal
• Body – Cast Iron
15 2 Biogas Extraction Blower Outlet Butterfly Valve:
• 3” Inch x 150# Flange Connection
• Gear Operated
• Lug Type
• Disc and Stem – Nickel Plated
• Buna Seal
• Body – Cast Iron
16 2 3” Check Valves:
• 3” Inch x 150# Flange Connection
• Wafer type
• Material: Carbon Steel with Nitrile seats
• To be installed at the outlet for each blower
• Installed Vertically with Drain Lines to Edge of Skid 17 1 Vacuum Pressure Transmitter
• Rosemount or equal
• Ship Loose Pressure Transmitter
• Pressure Rating: -250 to 250” WC
• 24 VDC
• Transmitter Outputs: (2) 4-20 mA Analog: HART
• Stainless Steel
• Shipped Loose to be Installed Upstream of Blowers
18 1 Vacuum Pressure Gauge
19 1 Flame Arrestor Pressure Gauge
20 1 Blower Inlet Temperature Gauge
21 1 Moisture Separator Drum:
• 90 Inch E/F x 12 Inch Diameter
• Demister Pad
• Sized for 6 Micron
• Operating Pressure: 35 in. w.c. Vacuum
• High Level Shutdown Switch with Alarm in High-High Position to Prevent Liquids from being carried to the Blower
• 3 Inch x 150# RF Inlet Nozzle
• 3 Inch x 150# RF Outlet Nozzle
• (1) 2” x 6000# NPT Drain Connection
• (2) 1/2" 3000# NPT Connections with Differential Pressure Gauge • Moisture Separator Drum Material: HDPE
• 8” Flanged and Covered Inspection Port
22 1 Blower Skid
• The following is/will be Mounted to the Skid:
• Flare Extraction Blower
• Blower Inlet and Outlet Valves

Quote: 26269 Rev 0, 1/6/2026 www.cimarron.com Page 10
• Check Valves
• Moisture Separator Drum
• Pressure Transmitter
• Flowmeter
• Interconnect Piping (304L)
• Interconnect Wiring
• Painted Carbon Steel Skid as per customer spec. (SP-6, primer, topcoat, gray color) Slip-Resistant Decking
• Note: Skid will be mounted with all components listed above and pre-wired to the maximum extent possible.
23 1 Interconnecting Piping between Blower Skid and Enclosed Flare 24 1 Ladder and 180 Degree Platform for Thermocouple and Emission Port Access • Meets OSHA Standards
25 1 Startup and Commissioning
• All estimated labor, travel and expenses for (1) Cimarron Service Technician to be onsite for (3) 8- hour days to commission (1) Biogas Enclosed Flare System 26 1 DAP Shipping to Ukiah, CA
27 1 Price Adder to Utilize Gardner Denver Model 310 7.5 HP Blowers

2.4 Shipping Details
☒ Inland Freight Packing
☐ Export Packing *
*Export packing and crating includes wooden box for flare tip and pilots suitable for sea / air freight. Export packing not applicable for non-technology items like flare stacks, structures, service piping and skids.

Quote: 26269 Rev 0, 1/6/2026 www.cimarron.com Page 11

3.0 Scope Responsibility Matrix
Cimarron considers the following responsibility matrix for the scope of supply listed in Section 2 of this proposal.

No. Description Cimarron Customer Remarks

SITE WORK/ASSEMBLY
1 Burners/Flare Tip Installation X
2 Combustion Chamber/Flare Riser Installation X
3 Area Lighting X
4 Heat Tracing (If required) X
5 Erection & Installation X
6 Civil work including foundation and anchor bolts X
7 Fireproofing X
8 Emission Testing N/A

FABRICATED EQUIPMENT & ENGINEERING
9 Stack X
10 Burner X
11 Pilot Ignitor Assembly X
12 Windshield (Aluminum) X
13 Refractory for Stack X
14 Ladder and Platform(s) X
15 Fuel Gas Skid (Assembled with Valves & Instruments) X 16 Local Control Panel X
17 Stack Junction Box X
18 Skid Junction Box X
19 Personnel Protection (If required) X
20 Surface Preparation and Painting X
21 Interconnecting piping from skid to Burner X
22 Interconnect wiring from J-boxes to Panel X
23 Instr. Air from Fuel Control rack to equip. X
24 Waste gas piping X
25 Utility piping X
26 Power Supply X
27 Power and Multi Core Cables X
28 Cables from Control Panel to DCS X
Note: Any responsibility not addressed in the above matrix is not included in this proposal unless specifically addressed in scope of supply

Quote: 26269 Rev 0, 1/6/2026 www.cimarron.com Page 12

4.0 Documentation
The tables below list the information/documentation that is provided standard (free of charge) or can be provided as an option. Customer to supply all necessary information to Cimarron to complete deliverable.

4.1 Quality/ Non-Destructive Testing
Cimarron will conduct the following quality checks/tests on the equipment on this project:

No. Type Included Extent Notes

1. Visual Inspection Yes Complete Package

2. Dimensional Check Yes Complete Package

3. Factory Acceptance Test Yes Complete Package

4. Dry Film Thickness Yes Painted Carbon Steel only

5. Radiography No 10% for Stack, 100% on buttwelds piping

6. Dye Penetrant
Examination** No ☐ Lifting lug welds (Standard)☐ Other (specify --->)

7. Ultrasonic Testing** No ☐ Lifting lugs material (Standard) ☐ Other (specify --->)

8. Magnetic Particle
Examination** No ☐ Lifting lug welds ONLY (Standard)☐ Other welds (specify --->)

9. Hydrostatic Testing No

1.3x MAWP for Pressure Vessels

1.5x MAWP for ASME Code Welded piping
☐ 30 Minutes (Standard)
☐ Other (specify --->)
Threaded piping
gets a pneumatic
test (See No. 10)

10. Pneumatic Testing*
Per ASME B31.3 para 345.8 Yes 10psig for 15 min for process piping, 10psig for 15 min for utility piping

11. Hardness / Impact
Testing** No Welds (Standard)
☐ Raw Material

12. PMI (XRF Method)** No ☐ Raw Material
☐ Weld (PMI Weld Map included)

13. Pickling and Passivation** No
☐ SS Tip + SS-SS welds
☐ SS Pilot + SS-SS welds
☐ SS Vessel + SS-SS welds
☐ SS Piping + SS-SS welds

14. Material Test Reports No
☒ ASME pressure vessel – All Pressure
Retaining Components
☐ ASME Piping – Pressure retaining parts
☐ Non-Code piping
☐ Valve bodies
☐ Thermowells
☐ Structural material
☐ Instrument bodies
No MTRs provided for fasteners and gaskets.
☐ Heat numbers
reference only.
☐ Heat numbers
reference +
Drawing label
identification index
by part.
* Performed in assembled state as a complete package where possible. ** Cimarron hires third party specialized contractors. Contractor report, approved by Cimarron QC will be provided.

Quote: 26269 Rev 0, 1/6/2026 www.cimarron.com Page 13

4.2 Engineering, Project Documentation, Manufacturer’s Record Book (MRB) Cimarron will provide the following engineering and documentation along with the equipment on this project.

Manufacturer’s Record Book (MRB) will include the items checked “Yes” below:

No. Type Customer Approval? Included
in MRB?
Notes (Weeks ARO)
Drawings, valve/instrument, and controls
information

1. Piping And Instrumentation Diagram For Customer Approval ☐ Std. 4

2. General Arrangement Drawing For Customer Approval ☐ Std. 8

3. Control Panel Layout For Customer Approval ☐ Std. 8

4. Control Panel Wiring Diagrams For Customer Approval ☐ Std. 10

5. Instrumentation OEM Brochures & Cut
Sheets - ☐ Std.

6. Instrument Data Sheets
(Data sheet offered per Cimarron
standard template)
- ☐
Analytical study reports

7. ASME Code Calculations (Pressure
Vessels Only) - ☐ Std.

8. Structural analysis report For Customer Approval ☐
Includes California
PE Stamp

9. Wind analysis report - ☐

10. Lifting Analysis report - ☐

11. Seismic Analysis report - ☐
Quality documentation

12. Certificate of Conformance - ☐ Std.

13. ASME Pressure Vessels U1A package - ☐ Std.

14. Inspection and Testing plan (ITP) - ☐

15. Welding Data (WPS/PQRs) - ☐

16. Welder Qualification Records - ASME
Code welding - ☐

17. Welder Qualification Records – Structural
welding - ☐

18. Weld Maps - ☐

19. Quality Manual - ☐

20. Applicable NDE Procedures - ☐
Non-Destruction Examination Records

21. Visual Inspection report1 Information only ☐ Std.

22. Paint Dry Film Thickness report1 Information only ☐ Std.

23. ASME Pressure Vessel NDE Report - ☐

24. Material Test Reports (MTRs) - ☐ See 4.1.14 Above

25. Hydrostatic Test report - ☐
1 Provided in Cimarron’s iForm or other internal formats.

Quote: 26269 Rev 0, 1/6/2026 www.cimarron.com Page 14

26. Pneumatic Test report - ☐

27. Factory Acceptance Test report - ☐

28. Radiography report2 - ☐

29. Dye Penetrant Examination report2 - ☐

30. Ultrasonic Testing report2 - ☐

31. Magnetic Particle Examination report2 - ☐

32. Hardness / Impact Testing report2 - ☐

33. Positive Material Identification (PMI)
report2
- ☐

34. Pickling and Passivation report2 - ☐
Operating Manual

35. Operating & Maintenance (O&M)
Manual Information only ☐ Std.

36. Control Narrative
(Cimarron standard template for Process
Controls in Cimarron Scope of Supply
only)
☐ Included in O&M

37. Cause & Effect Diagrams
(Cimarron standard template for Process
Controls in Cimarron Scope of Supply
only)
☐ Included in O&M
2 Cimarron hires third party specialized contractors. Contractor report, approved by Cimarron QC will be provided.

Quote: 26269 Rev 0, 1/6/2026 www.cimarron.com Page 15

5.0 Specifications & Clarifications

5.1 Project Specifications
Cimarron proposal is based on the documents and specifications as listed below which define our proposal requirements for the material, fabrication, testing and inspection of the equipment, except as specifically stated or otherwise clarified in our proposal.

Only the documents/specifications listed below were considered in the proposal preparation. Cross-referenced documents are not considered.

No. Description Document No Rev No.
1 Specifications RFB E41141 Enclosed Landfill Gas Ground Flare Station
0 2 Addendum Addendum 1 1
3 Addendum Addendum 2 2

5.2 Custom Clarifications
• Cimarron takes exception to 1.01 D – Demonstrate compliance with performance requirements as specified for emission testing. Customer to hire third party emission testing company to perform the emission test. Cimarron will provide field support to ensure emission requirements are met. • 2.02-3C – Cimarron will provide personal protection - expanded metal for accessible areas if the temperature exceeds 250 degrees Fahrenheit.
• 2.02-3G – Cimarron is not including a separate manway. Air Damper will be hinged and to be used as a manway.
• 2.02-4 – Cimarron takes exception to proposed burner design. We are including our proprietary antiflashback burner. • 2.03-Gas Handling System-F – Our Base Price Includes National Turbine Blowers (Surge flow for National Turbine Blowers is 9 SCFM). We are providing a price adder for Gardner Denver Blowers (Surge flow for Gardner Denver Blowers is 15 SCFM).
• Cimarron takes exception to 7.5 HP Blower as 5 HP is sufficient. • Cimarrons Proposal guarantees 98% Overall Destruction and Removal Efficiency (DRE).

5.3 Standard Clarifications

5.3.1 Technical Clarifications
• Cimarron requests a site plan or layout prior to submission for GA approval to optimize connection and piping orientations.
• PLC program provided with this project is the proprietary property of Cimarron and will remain in the sole ownership of Cimarron.
• Civil and foundation design for any equipment including anchor bolts or nuts, design of anchor bolt length or projection are excluded as this is part of civil engineering foundation design. • Unless specifically requested and addressed as compliant within this proposal, it is under the responsibility of the end user to determine compliance of any Cimarron supplied concrete blocks, pads, or slabs for the end user's specific civil requirements. Cimarron can furnish structural design information and methodology for the unit proposed herein this proposal upon request. • Bolt kits at battery limit flanged connections are excluded. • Supply to customer of shop details, fabrication drawings or proprietary calculations is excluded.

Quote: 26269 Rev 0, 1/6/2026 www.cimarron.com Page 16
• Installation of equipment including supply of cranes and/or personnel is excluded. General installation instructions and assembly drawings can be provided, however, detailed erection instructions and drawings are excluded. These instructions are meant to provide guidance and general steps to complete the installation. These procedures are not intended to be a substitute for experienced installation personnel. Field assembly and erection of the flare is outside the scope of work to be provided by Cimarron and is the sole responsibility of others. It is understood that the field contractor retained for this purpose is familiar with the assembly and erection of tall towers. • Our system’s skids will be prewired to a local junction box. Wiring between junction box and motors to the MCP is not in Cimarron scope unless otherwise indicated in the scope of work section of this proposal.

Conduit and wiring layout shall be provided by others.
• No interconnecting piping, wire, or conduit is included between proposed equipment, unless otherwise indicated in the scope of work section of proposal.
• All calculations, engineering, and sizing provided in our proposal are preliminary and may change during detailed engineering. Optimization of the design during project phase engineering may occur and is not subject to a reduction in price.
• Any structural calculations may be submitted for information only, not being subject to the approval process unless agreed upon prior to PO acceptance.
• Corrosion allowance for carbon steel is 1/16 inch on wetted parts and 0 for air risers and/or air annuluses.

No other corrosion allowance is applicable to our design or scope of work. • NACE compliant carbon steel is not included, unless specifically mentioned under the scope of work section of the proposal.
• If NACE compliant carbon steel is proposed, materials which exceed the requirements of NACE MR-01-75 are not considered.
• Low temperature carbon steel is not included, unless specifically mentioned under the scope of work section of the proposal.
• Hydro-testing or procedures of any piece of equipment other than stamped ASME pressure vessels, unless specifically indicated in the proposal.
• External insulation, insulation clips or heat tracing of any kind is excluded unless noted within the scope of work of this proposal.
• Armored cable or cable tray of any kind. We are supplying our standard wire and conduit within our battery limits is excluded unless noted within the scope of work of this proposal. • Material certifications as per BSEN 10204, 3.2 (formerly 3.1a and 3.1c) are excluded. • Where applicable, fixed ladders provided in accordance with OSHA Standard 1926.1053 Stairways and Ladders. Additional fall protection accessories not included. • Codes: Pressure vessels with MAWP in excess of 15psig are designed and fabricated in compliance with ASME Boiler Pressure Vessel Code, Sect VIII Division 1. Piping is designed and fabricated in compliance with ASME B31.3 Process Piping code.
• Welding: Cimarron uses welding processes that produce high quality welds with the metallurgical properties required for Cimarron Energy Systems fabricated equipment. Cimarron weld procedures and welders are qualified in accordance with A.S.M.E. Section IX. Qualifications to other codes and standards have not been considered. Cimarron standard weld procedures apply to our equipment, unless otherwise stated in our proposal. Any request to alter or modify our current weld procedures based upon clients’ internal specifications is currently excluded from our scope of supply. If new procedures are requested by the client, price and delivery impact will apply. • Cimarron Standard Paint Clarifications: On equipment quoted with Cimarron standard paint specifications (CIM-ENG-MECH-001 Rev. 6), the following clarifications are noted:
o Standard top coat: SW KEM 400, Color: RAL 1001 Desert Tan o Standard primer coat: SW KEM 400
o Standard prep/paint: SSPC-SP3

Quote: 26269 Rev 0, 1/6/2026 www.cimarron.com Page 17
o The following surfaces shall not be coated or painted, unless otherwise specified: Porcelain, Gauge glasses, Meter faces, Valve stem and threads, Stainless Steel Nameplates, Aluminum and Stainless steel, Insulation or fireproofing, Galvanized steel and Concrete, transit, masonry, stucco, etc.
o Factory finished equipment, including compressors, pumps, control valves, etc., will keep manufacturer standard coating unless otherwise specified o Touch-up paint for any damage to the equipment finish that may occur during shipment or installation is excluded from the scope of supply and pricing. Repair or application of touch-up paint is the responsibility of others unless stated otherwise in this proposal. • Emissions Testing: Prior to the official source test, Customer to engage cimarron in emission engineering study test to fine tune the equipment based on the actual operating conditions to meet the quoted emission guarantees. Cimarron will send one (1) project engineer and one (1) automation engineer per the field rates as specified in this proposal
• Structural Considerations: Unless otherwise noted in this proposal, Cimarron uses the following structural codes in the design of this equipment. Customer specific structural studies and design can be accommodated upon request but may result in price/delivery impact. o General structural design standards shall be AISC 360-16. o Wind design criteria shall be done in accordance with ASCE 7-16. o Fatigue criteria shall be done in accordance with AISC 360-16. o Seismic criteria shall be done in accordance with IBC 2021/2018.

5.3.2 Project Clarifications
Order of Precedence:
• In the event there is a redundancy or inconsistency between any documents attached, referred to, or appended to this proposal, the scope included in this proposal takes overall precedent.

Technical Scope Changes:
• All scope change requests made by Customer will be addressed with a “change order.” Based on the nature of change requested, Cimarron reserves the right to charge a minimum assessment fee of 8 hours of engineering/project management to evaluate the impact of the request. An exact estimate will be provided to the customer to approve prior to proceeding. • A “change order” is defined as a document Cimarron uses to handle changes to the contract. Such document may be used to change any portion of the contract and must be approved by both parties.

Unless exclusively noted, all prior agreed upon terms and conditions apply.

Engineering & Design Deliverables:
• All datasheets, process calculations, drawings, and any other engineering deliverables will be provided in Cimarron’s standard format (e.g., cover sheets, title blocks, drawing symbols, datasheet formatting, etc.) unless noted otherwise in this proposal. Pricing for using CUSTOMER or End User’s formatting for documentation has not been considered. If customer specified drawing or document format is required to be used by Cimarron, additional engineering and administration fees will be assessed. Doing so will also impact to the project schedule. A “change order” will be provided to the customer with those details upon such request.Drawing and Deliverable Review Cycle:
• Schedule includes a client review period not to exceed 1 week after submission of a document agreed upon to be submitted for approval. If Cimarron does not receive approval for construction within 1 week of initial approval drawing submittal, the production schedule will be subject to change based on shop load and change impact. Cimarron reserves the right to levy reasonable disruption charges to the customer which will include engineering, project management hours as a minimum if no procurement has been initiated. • Approval drawings are sent to the customer with the exclusive intent of communicating the scope of supply included in the proposal and provide information such as mechanical and electrical tie points to the customer. Cimarron reserves the right to address comments

Quote: 26269 Rev 0, 1/6/2026 www.cimarron.com Page 18
received that seek to modify the scope of supply and those that are not related to the scope of supply separately with a “change order.”
• All reviews, approvals, and other interface are to be directly with CUSTOMER for the scope of this proposal. If CUSTOMER is acting on the behalf of an end-user, all discussions, support, and assistance with end-user are under CUSTOMER scope. Cimarron can provide technical assistance not included within the scope of this proposal for an additional fee. • For reviews returned by CUSTOMER as “Approved as Noted”, “Approved with Comments”, or “Reviewed”, CUSTOMER understands that Cimarron will commence manufacturing and sourcing of approved scope not affected by open comments. Cimarron to provide final approved document to CUSTOMER assuming there is no further clarification required. The approval cycle will be defined as complete once Cimarron has returned the final approved document to the customer for information only.
• For reviews returned by CUSTOMER with the words “Rejected” or “Pending”, Cimarron will address clarifications with the customer and submit a revised document for approval. This will commence an additional approval cycle.
• If Cimarron has included a preliminary project schedule within or attached to this proposal, the schedule assumes parallel pathing fabrication drawings and long lead material procurement to compress where possible by allowing 1 cycle of approvals between CUSTOMER and Cimarron within the time allotted. Delivery subject to change if assumptions made are not complied to by CUSTOMER. The dates shown in the Project Schedule in are preliminary and subject to change depending on date of Cimarron’s acceptance of the PO. However, the indicated durations in the Project Schedule still apply.

A revised project schedule will be submitted prior to an officially scheduled kick-off meeting.

Free Issued Scope:
• In the event CUSTOMER is to free issue scope that is designed or engineered by Cimarron, the following protocol is in effect:
• Cimarron supplies CUSTOMER with fab level drawings or specifications where applicable. • CUSTOMER receives approval from end user where applicable. • CUSTOMER procures or fabricates their scope as applicable above. Cimarron assists CUSTOMER with any questions or issues experienced during fabrication. Cimarron does not interface directly with the fabricator.
• CUSTOMER will supply final end product to Cimarron within time specified in approved project schedule. CUSTOMER responsible for any cost or delivery impact to end user resulting from any issues not under Cimarron’s responsibility under CUSTOMER scope. • Cimarron has authority to reject equipment supplied by CUSTOMER if it does not fall within Cimarron specification or Cimarron quality standards. Rework, delivery impact, or any other cost impact experienced if supplied scope not in compliance within Cimarron supplied fabrication drawings under CUSTOMER responsibility.
• Any deviations to drawings/specifications supplied to CUSTOMER for CUSTOMER supplied scope require Cimarron approval.

Start-Up and Testing Support:
• Unless specifically noted, any HAZOP assistance beyond the agreed upon engineering deliverables provided in the scope is not included in the price of this proposal. • Any on-site supervision/start-up test and training offered in this proposal is subject to the following clarifications:
• Customer to supply date for site supervision/Startup to occur. Cimarron to agree on date. After time allotted in the proposal expires, Cimarron will begin charging day rates, regardless of delays or issues experienced outside of Cimarrons control or responsibility. Startup and site supervision is independent of any warranty claims.
• Offloading and installation of the equipment at the site is not within Cimarron’s Scope of Work unless specifically noted in this proposal.
• Field or emission testing of the unit is not within Cimarron’s Scope of Work unless specifically noted in this proposal.
• Client to schedule Cimarron technician onsite prior to emission test and an engineering test is required to fine tune the equipment.

Quote: 26269 Rev 0, 1/6/2026 www.cimarron.com Page 19

6.2024 US Downstream Field Service Rates
Description Standard Rate Overtime Rate
Service Technician $175/ HR $262.50/ HR
Automation/ Controls Specialist $210/ HR $305/ HR
Automation/ Controls Engineer $250/ HR $375/ HR
Engineering Specialist/ Project Manager $200/ HR $300/ HR Per Diem $80/ Day
Mileage .85 Cents/ Mile
Carbon Capacity Test (Lab Work & Report) $1,000/Test
Specialty Tools
VPI Kit $175 HART Communicator $250
Pressure Washer $125 Certified Gauge/Hand Pump $100
Vac Capacity Kit $1,250 Vibration Test Kit $100
Gas Monitor $75 Process Calibrator $100
Field Service Rate Clarifications
• All equipment must be completely installed with all utilities available for the operation of equipment.

Any downtime beyond Cimarron’s control will be invoiced at the above hourly rates. • Cimarron Commissioning Team requires a minimum of 30-day notice for commissioning services. • Commissioning Services will be invoiced at time and material unless otherwise stated • Purchase Order required for scheduling of services.
• Standard Time- Rates apply for the first 8 hrs. worked or travelled each business day (Mon to Friday between 8am-5pm)
• Overtime- Overtime rates are based on standard time rates +50%. These rates apply for all hours worked or travelled each business day between 8 and 12 hrs per day and the first 12hrs worked or travelled on Saturday or Sunday.
• Double Time-Double time rates are based on standard time rates +100%. Double time rates apply for any hour worked or traveled in excess of 12 hours each business day, hours worked or traveled in excess of 12 hours on Saturday, and all hours worked or traveled on a Sunday or locally recognized national holidays.
• Standby Time – Any standby time at site or other holding points in route when personnel are requested to be available to work will be regarded as regular time and charged at regular hourly rates. • Emergency Call Out Services will be subject to 4- hour onsite minimum charge, plus travel and expenses. • Travel Time will be charged at applicable hourly rates. Travel time will commence from personnel’s home base to site and return.
• Ground Transportation & Lodging – Daily car rentals & Lodging will be charged at cost plus 20%. • Flights – Flight and baggage expenses will be charged at cost plus 20%. • All Other Expenses – Subcontracted services, rental equipment, purchased materials, and other expenses and tooling will be charged at cost plus 20%.
• Cimarron Standard Terms and Conditions apply unless the labor is expressly subject to or incorporated in a Master Services Agreement or similar arrangement between Cimarron and the customer.

Quote: 26269 Rev 0, 1/6/2026 www.cimarron.com Page 20
• Invoicing – Invoices for services will be issued on a weekly basis and due within 30 days unless otherwise agreed. Pending positive credit reference check.
• Rates validity subject to change without notice.
• The above rates are not applicable if any of the following applies • Executed master service agreement
• Executed pre-negotiated rate agreement
• PLC Programs for all Cimarron equipment are considered Cimarron Intellectual Property, and will not be provided
• Quoted rates do not include taxes.
• This rate sheet contains Cimarron Confidential and Proprietary Information and is not to be disclosed to any third party without Cimarron written consent.
• Carbon VRUs: Preventive Maintenance, CGAs, and RATAs to be quoted per site upon request. • Carbon VRUs: Carbon must be installed in carbon vessels prior to service teams’ arrival. • Carbon VRUs: Customer must supply nitrogen for saturation purge on carbon vessels.

Estimated Commissioning Days Per Product Line
Product Line Estimated Days on Site
Carbon Bed Vapor Recovery Unit 10-15
Enclosed Combustor/ Abutec 5
CEB 5
Dock Safety Skid 5
Marine Equipment- VRU / VCU / ABUTEC / CEB Minimum 10

DATE: 12/3/2025
Bids may be emailed, faxed, or hand delivered, to the contact information listed REQ. NO. E41141 herein, and by the specified deadline, or the bid will be rejected.

Submitted by:

BIDS WILL BE RECEIVED UNTIL
5:00 p.m., January 7th, 2026
(Company Name AT THE OFFICE OF THE PURCHASING MANAGER
& Address) 411 W CLAY ST. CITY of UKIAH
BY: Myles Fisette
Email: [email protected]
BIDS ARE REQUESTED FOR THE FOLLOWING ITEMS:

QUANTITY DESCRIPTION UNIT PRICE EXTENDED PRICE
1 Enclosed Landfill Gas Ground Flare Station
As Per attached Equipment Specification E41141.

Insurance requirements include with attached specification as Attachment C Bids received after the date and time specified above will be rejected Tax (8.875 %):

Shipping:

TOTAL:

Payment Terms: N30

1. LOCAL PREFERENCE: Local Vendors shall be given an allowance of five percent (5%), up to a maximum allowance of $2,500, on any bid for supplies, equipment and/or materials per Ukiah City Code Section 1522.D.4. A Local Vendor is defined as one which, 1) conducts business in an office or other business premises with a physical location in Mendocino County, 2) holds a valid business license issued by Mendocino County or one of the cities in Mendocino County for that business location, and 3) has conducted business in compliance with 1) and 2) for not less than six (6) months prior to requesting the preference. The City shall receive satisfactory proof that a business qualifies as a local vendor before it may receive the local preference. In the event that there is a tie bid, where one bidder is local, the other is not, and the bid is equal in price and quality, the award shall go to the Local Vendor.

2. Right is reserved to reject any and all bids.

3. Right is reserved to accept separate items unless specifically denied by bidder.

4. Right is reserved to reject a bid from any bidder who has previously failed to perform adequately for the City of Ukiah.

5. In CASE OF DEFAULT, the City of Ukiah may procure the items quoted on from other sources and hold the original bidder liable for any increased costs.

6. The price, terms, delivery point, and delivery date may individually or collectively be the basis of the awarding of the bid.

7. In submitting the bid, bidder agrees that the bid shall remain open and may not be revoked or withdrawn for 60 days from the bid due date, unless a different time period is specified in RFB.

8. Bidder agrees to perform according to its bid, if the City's acceptance is communicated to the bidder within the time specified in number 7 above.

ALL BIDS SHALL BE F.O.B. UKIAH, CA.

TERMS:

SIGNATURE:

PRINT NAME:

DATE:

PHONE:

LEAD TIME ARO :

EMAIL:

REQUEST FOR BID
UKIAH, CALIFORNIA 95482
P: (707) 463-6225
300 SEMINARY AVENUE
PAGE 1 OF 1
1 $366,328.00
$19,555.00
$32,511.61
$418,394.61
Perennial Energy, LLC
1375 CR 8690
West Plains, MO 65775
Attachments/Enclosures:

Conditions of Sale and Warranty and Service Policy
P25142 Ukiah Landfill mEGFS Quote
Emissions Statement
Estimated Schedule
Sample COI
David Mathews
January 05, 2026
(417) 505-7190 [email protected]
See quote
Attachment 3

1375 County Road 8690 West Plains, MO 65775
Phone (417) 256-2002
www.PerennialEnergy.com [email protected]
P25142 Ukiah Landfill mEGFS Quote.docx Page 1 of 10
January 05, 2026
City of Ukiah
Re: Micro Enclosed Ground Flare Station
Attn: Myles Fisette
Per your request, following and attached please find our quotation to supply the described products and services relative to your project requirements. We appreciate the opportunity to furnish this proposal.

Perennial Energy proposes to provide a unitized, modular micro enclosed ground flare station, with off-loading and installation by others. The gas handling system shall be sized per the specification to exert a 30” WC vacuum at the inlet of the skid (35” WC vacuum at the inlet of the blower) and deliver 110 SCFM of 20% to 50% methane content LFG to a 3.0 MMBtu/hr, enclosed ground flare. The system shall be capable of delivering the specified landfill gas flow at up to 15” WC at the outlet of the blower. Vacuum/Flow control feature is accomplished with VFD Blower Control. The three-phase, 480 VAC power panel and the single-phase load distribution panel are provided on the Perennial Energy system skid.

The Enclosed Ground Flare (EGFS) shall include three principal sub-systems:
• The Enclosed Ground Flare (EGF)
• The Gas Handling System (GHS)
• The MCC/Control System (CP)
Not included in this proposal are the following:
• Site Civil, Electrical, or Structural Engineering
• Off-loading, or Installation
• Bonds or liquidated damages
• Taxes, permits, fees, etc.
• Spare Parts
• Prevailing Wage
• Emissions testing
Local Conditions
Location: 3100 Vichy Springs Road Ukiah, CA 95482
Elevation: 705 feet
Ambient: 21.5 °F Min / 97.4 °F Max
Wind: 100 mph

P25142 Ukiah Landfill mEGFS Quote.docx Page 2 of 10
Incoming Stream:

Landfill Gas
CH4 20 % - 50 %
CO2 20 % - 50 %
Nitrogen 5 - 35 %
Oxygen 0 - 5 %
Temperature 100 °F
Inlet Vacuum 30 Inches WC
Emission Factors:

Emission Factors
30% - 50% CH4 0.06 lb./ MMBtu NOx

0.20 lb/ MMBtu CO
98% Destruction Efficiency of NMOC’s
99% Destruction Efficiency of methane
NMOC destruction efficiency will be 98% or a reduction of the outlet NMOC concentration to less than 20 ppmvd, as hexane at 3% oxygen.

NOX emission rates are exclusive of fixed nitrogen in the fuel or injected in condensate, leachate, or other sources.

Typical sulphur containing compounds are expected to be oxidized at 98% efficiency
Estimated Utility Requirement
Power: 480 VAC, 60 hertz, Three phase, see table below
Natural Gas or Propane: 0.5” NPT Connection, 40,000 Btu/hr Instrument Quality Compressed Air: 80 psig – 120 psig Compressed Air Ethernet: Quantity 1, Cat 6 Cable
Estimated Power Requirement
System Rated Size 110 SCFM
Blower 301 3 HP
Blower 302 3 HP
480/240 Transformer 15 kVA
Main Incoming Amperage 60
*Note: Main Incoming Amperage is with only 1 blower operating.

Clarifications and exceptions are the following:
o Perennial acknowledges the schedule as outlined in the specifications and is included below.
• Flare Vendor Submittal of Flare Station Shop Drawings: 4/1/2026 • EBA Engineering Submittal of ATC Permit: 5/1/2026
• MCAQMD Review/Approval of ATC Permit: 5/1/2026 – 11/1/2026 • Authorization to Flare Vender to Fabricate Flare Station: 11/1/2026 • Flare Vendor Fabrication of Flare Station: 11/1/2026 – 3/24/2027

P25142 Ukiah Landfill mEGFS Quote.docx Page 3 of 10
• Flare Vendor Delivery of Flare Station to Work Site: 3/31/2027 o Schedule Exceptions:
• The current lead time of long lead components are 20 – 24 weeks. This is greater than the time allotted to manufacture the unit. To meet the March 2026 delivery deadline, Perennial would need long lead items approved and on order to be at Perennial on November 1, 2026, which is the tentative release for manufacture date. This would allow sufficient time for Perennial to meet the deadline for the unit as the components would be on hand and ready for manufacturing and assembly. • Attached is a tentative schedule Gant chart.
o Included in the quote below are the typical manufacturer Perennial supplies. However, Perennial will review manufacturers during the submittal phase to ensure total project quality and lead time can be met. If there are any changes, this will be noted in the engineering submittal supplied to the client.
o There is typically no cost escalation if manufacturing starts the same year as the submittal is sent. If manufacturing is delayed beyond 1 year of submittal, typical cost escalation is less than 3 percent of the total project cost. However, as there are a lot of outside factors that are beyond Perennial control (component costs, tariffs, etc.), this can vary and will need to be addressed on a case-by-case basis.
o Component Warranty does not include shipping and labor (uninstalling and reinstalling).

Manufacture defect warranty will include any shipping and labor and is typically completed on-site.
o The enclosed ground flare has a 6:1 automatic turndown and a 10:1 manual turndown. The manual turndown includes blocking ports, closing off louvers, and moving the bottom thermocouple.
o The noise level of a Perennial flare has not been tested. However, typical noise pollution and vibration from an enclosed ground flare operating within the design parameters is very low. No guarantees can be given as the incoming gas and local environmental impacts have a huge effect on noise and vibration.
o Stamped anchorage calculations are included for the flare and the GHS. Stamp will be from a California Licensed PE.
o The area classification of the system is per the below. • Class I Division I
▪ None
• Class I Division II (3 feet from any gas carrying pipe) ▪ Gas Handling System
▪ Interconnecting pipe and components
• Unclassified
▪ Enclosed Ground Flare
▪ Control Panel (located 5 feet from any gas carrying pipe) o The blowers will be able to operate down to approximately 35 hertz. o The demister filter vessel will be made from 304L Stainless Steel. o Quantity 1 on-site trip is included for preparation for emission testing. This can be accomplished before the third-party testing company arrives or the same time as the thirdparty testing company. Please see attached emissions statement.