Ukiah City Council
March 18, 2026

California Department of Housing and Community Development 19 HOME 2025 Projects NOFA
Projects and from HUD for Developer and CHDO Projects. The cost to secure the site control document can be only a nominal portion of the purchase price. • A Purchase Agreement, Disposition and Development Agreement (DDA), Option to Lease, or Exclusive Right to Negotiate is obtained, but this agreement cannot be conditioned on National Environmental Policy Act (NEPA)/California Environmental Quality Act (CEQA) clearance or any other federal requirement.
• A conditional purchase contract may be used for an existing single-family home (1 to 4 units) or an existing multifamily residential Project in some limited circumstances, even when federal funds have already been contemplated.
• The determination as to what constitutes acceptable evidence of site control shall be made by the Department in its sole and absolute discretion. This includes bypassing site control requirements when the Housing Accountability Unit has found that state law requires approval of the Project.

General HUD rules state that Purchase Agreements are acceptable if federal funds are not contemplated. Applicants are cautioned to make sure that the Purchase Agreement or DDA is open-ended or is of sufficient duration that it does not need to be extended after the HOME application is submitted.

HUD has ruled that if a Purchase Agreement/DDA expires after the HOME application is submitted, and before the AUGF is executed, the execution of an extension would be a Choice-Limiting Action (renewal prior to expiration is acceptable). The application also should ensure the Purchase Agreement/DDA has other contingencies, such as a permanent financing contingency, so that the seller cannot legally compel an individual to purchase the site prior to receiving the AUGF.

NOTE: For more details on required and prohibited provisions of agreements consistent with NEPA, see HUD CPD Notice 98- 01: Layering Guidance for HOME Participating Jurisdictions When Combining HOME Funds with Other Governmental Subsidies; HUD CPD Notice 15-09: Requirements for Committing HOME Funds; and HUD Memo:

Guidance on Operations and Conditional Contracts for Purchase of Real Property for Environmental Reviews Conducted by a Responsible Entity under 24 C.F.R. Part 58.

B. Rating and Ranking
The Department will score, rank, and fund applications based on a review of eligible activities for which funds are requested. Each application must be submitted using Department forms and must contain all information required pursuant to 25 C.C.R. § 8211(c)(d). Scoring for Projects is subject to the appeal process described in Section IV (E) of this NOFA. Each Project activity will be evaluated and ranked separately.

In the case of a tied score, the application demonstrating the highest jurisdictional poverty level will be funded first. If Applicants are applying from the same jurisdictional

California Department of Housing and Community Development 20 HOME 2025 Projects NOFA
area, the Project with the highest percentage of enforceable commitments will be funded first.

Applications will be funded in descending order based on points earned. Applications that qualify for CHDO and FTHB Project targets will be funded first, based on their scores as necessary to meet the minimum set-asides and funding targets.

Once the set-asides and targets have been achieved, remaining applications will be funded within their respective allocations pursuant to 25 C.C.R. § 8212.1, based on scores relative to all other applications, with the highest-scoring applications funded first.

NOTE: All scoring factors and evaluation requirements are listed in Appendix D: Scoring Factors.

C. Project Scoring and Notification
Once rental Project application scoring is complete, the Department will email the authorized representative and contact person listed in the application describing the scores and facts upon which those scores were determined.

D. Feasibility Review
In accordance with 25 C.C.R. § 8212(a)(6), 25 C.C.R. § 8310, and 24 C.F.R. §

92.250(b), the Department will perform underwriting analysis to substantiate the Project is financially feasible for at least 20 years, as well as cost allocation and subsidy layering analyses to determine the appropriate amount of the HOME award.

When making its feasibility determinations, the Department will:
• Examine all the sources and uses of funds for the Project (including any operating cost assistance, operating cost assistance reserve, or Project-based rental assistance that will be provided to the Project); and • Assess the current market demand in the area in which the Project will be located, the experience of the Applicant team, the amount and quality of the Applicant team’s employees, the financial capacity of the Applicant team, and firm written financial commitments for the Project.

To determine the Project’s feasibility and sustainability, the Department will review the Project Sources and Uses Form. When completing the application form, Applicants should be sure to include all known and potential Project costs.

If an Applicant proposes to develop Project(s) formerly used for agricultural, industrial, manufacturing, or commercial purposes, or the site is situated on, adjacent to or near rail yards, airports, dumpsites, or other potentially contaminated properties, whether abandoned or operating, the Department may require Phase II environmental site assessment, or other soil assessment or testing. If an Applicant proposes to develop site(s) within a 100-year floodplain, the Department requires a HUD 8-step Floodplain

California Department of Housing and Community Development 21 HOME 2025 Projects NOFA
Analysis. If not submitted with the application, these reports will be required after award as part of the NEPA process.

If the Applicant has any indication that these conditions may exist, the Department highly recommends that Applicants complete an assessment, soil sampling, or other appropriate testing methodology, prior to submitting the application. The results should be submitted as part of the application documentation, and any additional costs the Project may incur must be included in the Project budget and Sources and Uses Form.

E. Appeals
Basis of Appeals
a. Applicants may appeal to 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).
b. 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. c. Applicants do not have the right to appeal a decision of the Department relating to another Applicant’s application (e.g., eligibility, award). d. Any request to appeal the Department’s decision regarding an application shall be reviewed for compliance with this NOFA. All decisions rendered shall be made by the Branch Chief or his/her designee. The decision shall be final, binding, and conclusive, and shall constitute the final action of the Department. e. The appeal process provided herein applies solely to decisions of the Department made pursuant to this NOFA.

Appeal Process and Deadlines
a. Process: 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 appeal is submitted to the Department, no further information and/or materials may be accepted or considered. Appeals are to be submitted to the Department at [email protected] according to the deadline set forth in the Department review letters.

California Department of Housing and Community Development 22 HOME 2025 Projects NOFA
b. Filing Deadline: 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.

V. Award Announcement and Contracts
A. Award Announcement
Subject to the availability of funds, the Department intends to send Award letters in July 2026, for successful Applicants.

B. Contracts
Awardee(s) and ultimate borrower must enter into a Standard Agreement with the Department. The Standard Agreement contains all the relevant state and federal requirements, as well as specific information about the award and the work to be performed. The Standard Agreement includes deadlines that are consistent with state and federal HOME regulations. Any change in the organizational structure may require re-underwriting and could jeopardize the award if the revised structure fails to meet program requirements.

NOTE: The Standard Agreement may be delayed if the HOME Recipient does not timely provide the Department with all required entity resolutions and other entity documentation (e.g., bylaws, articles of incorporation, 501(c)(3) certification, certificate of good standing, limited partnership agreement), in form and content acceptable to the Department in its sole discretion, which evidences that the Awardee has the legal authority to contract with the Department.

The Standard Agreement must be executed by the Awardee(s) within 90 days of receipt.

Failure to execute and return the Standard Agreement(s) to the Department within 90 days may result in award cancellation. The Awardee(s) must remain a party to the Standard Agreement for the full term of the Standard Agreement; removal of the Awardee(s) is prohibited unless the Department provides approval in advance.

VI. Other Terms and Conditions
A. Right to Modify or Suspend
The Department reserves the right, at its sole discretion, to suspend, rescind, amend, modify, or supplement the provisions of this NOFA at any time, including without limitation, the amount of funds available hereunder. If such an action occurs, the Department may notify applicants via e-mail or via a Listserv notice and will post the revisions to the Department website. Be sure to sign up for our Listserv athttps://www.hcd.ca.gov/contact-us/email-signup by choosing “Federal Programs.”

California Department of Housing and Community Development 23 HOME 2025 Projects NOFA
B. Conflicts
In the event of any conflict between the terms of this NOFA and either applicable state or federal law or regulation, the terms of the applicable federal law or regulation shall control. Applicants are deemed to have fully read and understand all applicable state and federal laws, regulations, and guidelines pertaining to HOME, and understand and agree that the Department shall not be responsible for any errors or omissions in the preparation of this NOFA.

C. Incompatible Funding
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 or activity in order to ensure that each and every requirement of those funding sources is compatible with all HOME requirements and restrictions.

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

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

F. Combating 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 the Department and HOME PROJECTS NOFA Applicants to combat HOME fraud.

HUD also relies on Applicants for, and people receiving, HUD benefits, such as: tenants receiving rental assistance, borrowers with HUD insured loans, and/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 HOME to the OIG.

California Department of Housing and Community Development 24 HOME 2025 Projects NOFA
HUD OIG accepts reports of fraud, waste, abuse, or mismanagement in HOME from HUD employees, anyone administering HOME, anyone working in HOME, contractors, and the public.

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

Fraud, waste and abuse in HOME and its operation may be reported in one of the following four (4) ways:

By email to: [email protected]
By phone: Call toll free: 1-800-347-3735 By fax: 202-708-4829 By mail:

U.S. Department of Housing & Urban Development
HUD OIG, Office of Investigation, Room 1200 Field Office One Sansome Street, San Francisco, CA 94104
HUD OIG, Office of Investigation Suite 4070 Regional Office 300 North Los Angeles Street, Los Angeles, CA 90012
G. 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:
a. a violation of any law, rule, or regulation,
b. gross mismanagement,
c. a gross waste of funds,
d. an abuse of authority, or
e. 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:
a. Informing a supervisor or someone higher up in management, b. Submitting a complaint to the OIG by emailing the OIG at [email protected],

California Department of Housing and Community Development 25 HOME 2025 Projects NOFA
c. Filing a complaint with the Office of Special Counsel (OSC) https://www.osc.gov/.
d. The California Whistleblower Protection Act (Title 2, Division 1, Chapter

6.5, Article 3.5, Gov. Code §§ 8548-8548.5)
The California Whistleblower Protection Act 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:

1. Violates any state or federal law or regulation,

2. 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

3. 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 an appropriate law enforcement agency conducting a criminal investigation.

There are many ways to file a complaint:

1. By Telephone
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 when called, the hotline is not being staffed, or staff is occupied with other calls, a voicemail message can be left requesting a return call.

2. By Mail or Facsimile
To file a complaint in writing, submit a letter to the State Auditor addressed as follows:

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

As an alternative, a complaint form may be accessed electronically (which is available on the State Auditor website at www.auditor.ca.gov). To submit, print it out, and return it by mail or facsimile as stated above.

3. Online
Although the State Auditor does not accept complaints by email, complaints may be submitted online at https://www.auditor.ca.gov/whistleblower/.

California Department of Housing and Community Development 26 HOME 2025 Projects NOFA
The State Auditor will not undertake an investigation unless there is a basis for believing that a complaint has sufficient merit to warrant spending resources on an investigation.

A complaint should therefore include:

1. A clear and concise statement of what is being alleged to be improper activity and why it is believed to be improper.

2. The name or other information that clearly identifies the person alleged to have acted improperly and the department where that person works.

3. The names and contact information for any witnesses who can confirm the truth of the complaint.

4. Copies of any documents that will support the complaint. (Do not submit original documents, as they cannot be returned.)
H. Cancellation and Defaults
If HCD is required to repay HUD for HOME funds invested in affordable housing because the Project failed to meet the required minimum period of affordability (pursuant to 24 C.F.R. § 92.252(e)), then the Applicant/Developer/Contractor must repay the same amount back to the Department upon demand.

Terminated Projects: If a HOME Project is terminated pursuant to 24 C.F.R. §

92.205 and the Department must repay any HOME funds invested in the Project to the Department's HOME Investment Trust Fund in accordance with 24 C.F.R. § 92.503(b), then Applicant/Sponsor/Developer/Borrower must repay that money back to the Department, so the Department is made whole.

I. Loan Closing Requirements
Sponsor must submit all Department Closing Checklist items well in advance of the anticipated construction loan closing, occupancy, and permanent loan closing dates.

Sponsors and Borrowers should allow at minimum 90 days after they have submitted to the Department the (i) final due diligence documents; and (ii) final signed transaction summary report for a loan to close.

Failure by Sponsors and Borrowers to timely submit (i) the required due diligence documentation; and (ii) the final signed transaction summary will result in an unnecessary delay to the date when the Department loan will be able to close and may result in extra costs to Borrower. Sponsors and Borrowers are responsible to plan accordingly to ensure a timely closing.

California Department of Housing and Community Development 27 HOME 2025 Projects NOFA
VII. List of Appendices
Appendix A: Federal and State Overlays
Appendix B: Eligible State HOME Jurisdictions
Appendix C: CHDO Certification Instructions
Appendix D: Scoring Factors
Appendix E: Community Need Score
Appendix F: Organizational Documents Checklist
Appendix G: Project Documents Checklist

ATTACHMENT 2

RESOLUTION NO. 2026-

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

SUBMITTAL OF AN APPLICATION TO THE CALIFORNIA DEPARTMENT OF HOUSING

AND COMMUNITY DEVELOPMENT FOR FUNDING UNDER THE HOME INVESTMENT PARTNERSHIPS PROGRAM; AND IF SELECTED, THE EXECUTION OF A STANDARD

AGREEMENT, ANY AMENDMENTS THERETO, AND OF ANY RELATED DOCUMENTS NECESSARY TO PARTICIPATE IN THE HOME INVESTMENT PARTNERSHIPS PROGRAM.

WHEREAS:

A. The California Department of Housing and Community Development (the “Department”) is authorized to allocate HOME Investment Partnerships Program (“HOME”) funds made available from the U.S. Department of Housing and Urban Development (“HUD”). HOME funds are to be used for the purposes set forth in Title II of the Cranston-Gonzalez National Affordable Housing Act of 1990, in federal implementing regulations set forth in Title 24 of the Code of Federal Regulations, part 92, and in Title 25 of the California Code of Regulations commencing with section 8200.

B. On January 29, 2026, the Department issued a Notice of Funding Availability announcing the availability of funds under the HOME program (the “NOFA”).

C. In response to that January 2026 HOME NOFA, the City of Ukiah, a political subdivision of the State of California (the “Applicant”), wishes to apply to the Department for, and receive an allocation of, HOME funds.

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Ukiah as follows:

1. In response to the January 2026 HOME NOFA, the Applicant shall submit an application to the Department to participate in the HOME program and for an allocation of funds not to exceed Five Million Two Hundred And Twenty Five Thousand Dollars ($5,225,000) for the following activities and/or programs:

Project Activity – Rental Rehabilitation Project $5,000,000 Activity Delivery – Rental Rehabilitation Project $ 75,000 General Administration – Project Activity $ 150,000
Total $5,225,000
To be located in the incorporated area of the City of Ukiah.

2. If the application for funding is approved, then the Applicant hereby agrees to use the HOME funds for eligible activities in the manner presented in its application as approved by the Department in accordance with the statutes and regulations cited above. The Applicant will also execute a Standard Agreement, any amendments thereto, and any and all other documents or instruments necessary or required by the Department or HUD for participation in the HOME program (collectively, the required documents).

3. The Applicant authorizes the City Manager or their designee(s) to execute, in the name of the Applicant, the HOME Standard Agreement.

Attachment 3

4. The Applicant authorizes the City Manager, or the Deputy City Manager, or the Director of Community Development, or their designee(s), to execute, in the name of the Applicant, all other required documents.

PASSED AND ADOPTED this 18th day of March, 2026, by the following vote:

AYES:

NOES:

ABSTAIN:

ABSENT:

Susan Sher, Mayor
The undersigned City Clerk of the Applicant does hereby attest and certify that the foregoing is a true and full copy of a resolution of the governing board of the Applicant passed and adopted at a duly convened meeting on the date set forth above, and said resolution has not been altered, amended, or repealed.

Kristine Lawler, City Clerk/CMC Date

Agenda Item No: 8.e.

MEETING DATE/TIME: 3/18/2026

ITEM NO: 2026-478

AGENDA SUMMARY REPORT
SUBJECT: Approval of Lease Agreement with Option to Purchase between the City of Ukiah and the Willow County Water District for the Property Located at 151 Laws Avenue, APN 003-420-47; Authorization for the City Manager to Negotiate and Execute the Agreement and Any Related Documents Necessary to Implement the Lease-Purchase Transaction; and Approve Corresponding Budget Amendment.

DEPARTMENT: Finance PREPARED BY:

Dan Buffalo, Finance Director, Jared Walker,
Redwood and Millview Water Districts General
Manager
PRESENTER: Dan Buffalo, Finance Director
ATTACHMENTS:

1. LEASE AGREEMENT WITH OPTION TO PURCHASE - FINAL w attachments

2. SLA Process - Exemption (Public Use)
Summary: Staff recommends that the City Council approve a Lease Agreement with Option to Purchase (Attachment 1) between the City of Ukiah and the Willow County Water District for the office building located at 151 Laws Avenue (APN 003-420-47) and authorize the City Manager to execute the agreement on behalf of the City.

The agreement allows the City to occupy the property under a five-year lease structured as a fully amortizing lease-purchase arrangement. Monthly payments of $9,242.13 are calculated to amortize $499,999 over the five-year term at an interest rate of 4.15 percent. During the term of the lease agreement, the City may exercise an option to purchase the property for an early purchase price. But at the end of the lease term, the City will have the option to acquire title to the property for $1.00 through a bargain purchase option.

The agreement also allows the City to exercise an early purchase option during the lease term by paying the remaining principal balance as reflected in the amortization schedule.

Background: The Willow County Water District currently owns the office building located at 151 Laws Avenue in Ukiah. The property has been identified as a suitable facility to support public operations and interagency coordination. It is intended to be restricted for continued public use.

The City and the District have negotiated a lease-purchase arrangement that allows the City to occupy the building immediately while financing the acquisition over a five-year period. This structure allows the City to spread the cost of the acquisition over time while preserving flexibility during the lease term.

An independent appraisal prepared in accordance with the Uniform Standards of Professional Appraisal Practice (USPAP) determined the fair market value of the property to be $500,000. The lease payment structure is based on this appraised value.

Discussion: The proposed agreement provides the City with a structured mechanism to secure long-term ownership of the office building located at 151 Laws Avenue while allowing the City to occupy the property immediately and finance the acquisition over time.

Lease-Purchase Structure
The agreement is structured as a lease-purchase arrangement under which the City will make monthly payments that include both principal and interest components. The payments are structured to fully amortize the principal amount of $499,999 over a five-year period at a fixed interest rate of 4.15 percent. At the end of the lease term, the City will have the option to acquire title to the property for $1.00 through a bargain purchase option. The City may also elect to purchase the property earlier during the lease term at an early purchase price outlined in the agreement.

This structure allows the City to spread the acquisition cost over time while retaining flexibility to purchase the property earlier by paying the remaining principal balance shown (early purchase price) in the lease payment schedule.

Operational Control of the Property
During the lease term, the City will have exclusive use of the building and will be responsible for maintenance, repairs, utilities, and any improvements made to the property. The arrangement allows the City to fully utilize the building for municipal purposes while gradually acquiring ownership.

Compliance with the California Surplus Land Act
Because the transaction involves the disposition of publicly owned property by the Willow County Water District to another public agency, the parties must comply with applicable provisions of the California Surplus Land Act (Government Code §§54220–54234). The Surplus Land Act establishes procedures that local agencies must follow before disposing of or transferring property that has been declared surplus.

Under these provisions, before a local agency may dispose of surplus land, it must provide written notice of availability to certain entities, including affordable housing developers, park and recreation agencies, school districts, and other public agencies, and allow a period of time for those entities to express interest in acquiring the property. If an eligible entity expresses interest, the agency must enter into good-faith negotiations for a specified period. A line diagram containing the process for determining eligibility of lands dedicated for other public uses is included in Attachment 2.

In this case, the property owner, Willow County Water District, must comply with the applicable notice and reporting requirements of the Surplus Land Act prior to completing the disposition of the property. Because the proposed transaction involves a transfer between public agencies for governmental purposes, it may qualify for one of the statutory exemptions provided under the Act; however, the District remains responsible for making the necessary determinations and filings required by the statute to the California Department of Housing and Community Development (HCD).

Financial Considerations
The monthly lease payment under the agreement is $9,242.13, representing the fully amortized payment required to finance $499,999 over five years at an interest rate of 4.15 percent.

Lease payments will be funded through the City’s Utility Billing Fund, which functions as an indirect cost allocation fund supporting centralized billing and collection services provided to the City’s utilities and related operations and organizations. The Utility Billing Fund is supported through cost allocations established in the City’s Indirect Cost Allocation Plan.

If the City elects to exercise the purchase option at the end of the lease term, or earlier during the lease term, the payment associated with the lease-purchase structure would also be paid from the Utility Billing Fund.

Because the lease term begins during the current fiscal year, a budget amendment will be required to appropriate the first year of lease payments within the Utility Billing Fund. Future lease payments will be incorporated into the City’s annual budget process during the five-year term of the agreement.

Staff recommends Council approve the Lease Agreement with Option to Purchase between the City of Ukiah

and the Willow County Water District for the property located at 151 Laws Avenue, APN 003-420-47; authorize the City Manager to further negotiate and execute the agreement and any related documents if necessary to implement the lease-purchase transaction; and authorize corresponding budget amendment.

Recommended Action: Approve the Lease Agreement with Option to Purchase between the City of Ukiah and the Willow County Water District for the property located at 151 Laws Avenue, APN 003-420-47; authorize the City Manager to negotiate and execute the agreement and any related documents necessary to implement the lease-purchase transaction; and approve corresponding budget amendment.

BUDGET AMENDMENT REQUIRED: Yes
CURRENT BUDGET AMOUNT: 20513300.74500.18521: $0; 20513300.74501.18521: 0 PROPOSED BUDGET AMOUNT: 20513300.74500.18521: $91,890.35; 20513300.74501.18521: $19,015.20 FINANCING SOURCE: Indirect allocation
REVENUE: No GRANT: No
PREVIOUS CONTRACT/PURCHASE ORDER NO.: N/A
COORDINATED WITH: City Manager's Office, Water Resources Department STRATEGIC PLAN (SP): N/A
GENERAL PLAN ELEMENTS (GP): N/A

1 LEASE AGREEMENT WITH OPTION TO PURCHASE
This Lease with Option to Purchase (“Agreement”) is made in Ukiah, California, on July 1, 2026 (“Effective Date”) between the Willow County Water District, (“LESSOR” or “District”) and the City of Ukiah (“LESSEE” or “City”). LESSOR and LESSEE are at times collectively referred to below as the “Parties” or individually as a “Party.” LESSOR is the owners of that certain real property located at 151 Laws Avenue in Ukiah, California, also known as Mendocino County Assessor’s Parcel Number (“APN.”) 003-420-47 (the “Property”), being substantially as described herein in Exhibit "A" attached hereto and made a part hereof. LESSEE desires to lease the Property from LESSOR for a term of 5 years with an option to purchase the Property during the term of the lease as hereafter provided.

LEASE AGREEMENT

1. Lease. Starting on the Commencement Date, LESSOR hereby leases to LESSEE and LESSEE hereby leases from LESSOR the real property and improvement located thereon described in Exhibit A, together with rights, privileges, easements, servitudes and appurtenances thereto, hereafter called the “Leased Premises” or the “Property”)

2. Definitions. In addition to the terms defined elsewhere in this Agreement, the following definitions shall apply throughout this Agreement.
(a) “Commencement Date” means July 1, 2025.
(a) “Lease/Option Agreement” means this Agreement.
(b) “Escrow” means the escrow established with the Escrow Company for the purpose of conveying the Property from the LESSOR to LESSEE. (c) “Escrow Company” means Redwood Empire Title Company. (d) “Event of Default” has the meaning set forth in Part I, Sections 16 and 17 as applicable.
(e) “Option Period” means the period of time commencing on the Option Notice Date as defined in Article II, Section 1 of this Agreement and Close of Escrow. (f) “Term” means the term of the Lease, which shall consist of the period commencing on the Commencement Date and ending sixty months thereafter, or until an earlier termination of the Lease as further provided herein, including close of escrow after LESSEE exercises its option to purchase the Property.
(g) “Title Company” means Redwood Empire Title Company.

3. Appraisal of Property. The City had the Property appraised by a qualified appraiser approved by the City and the District, attached hereto as Exhibit C. The appraisal complied with the Uniform Standards of Professional Appraisal Standards. The appraisal found that the fair market value of the Property is $500,000, the lease payments under paragraph 4 shall be based on the appraised value.

Attachment 1

2 4 Term of Lease. This Lease shall commence upon the Commencement Date and shall continue thereafter for a period of 60 months or until LESSEE terminates the Lease by Notice of Termination or upon acquisition of title to the property by exercising its option to purchase.

5. Lease Payments: Starting on May 1, 2026 LESSEE shall pay LESSOR $9,242.13 per month as rent which is the fully amortized rate for paying in five years $499,999.00 at an annual interest rate of 4.15%. (See Lease Payment Schedule, attached hereto as Exhibit B.) Each payment shall be due on the first day of the month and shall be considered delinquent if not received by LESSOR by the 15th day of the month. Further, on May 1, 2026, LESSEE shall pay LESSOR the sum of $92,421.30 accounting for the ten months of rent payments since the Commencement Date.

6. Use. LESSEE shall have the exclusive occupation and use of the Property during the term of the Lease, including the right to sublease or license the use of any portion of the Property.

7. Utilities. LESSEE shall be responsible for securing and paying for all utility services at the Property, including water, sewer electricity and solid waste collection and disposal.

9. Maintenance, Repair and Improvements. LESSEE shall be responsible for all costs associated with the occupation and use of the Property and its maintenance and repair. LESSEE shall have the right without LESSOR’s approval to make capital improvements at its discretion.

All such work shall comply with applicable law including the California Building Code and the California Environmental Quality Act (“CEQA”).

10. Insurance. At all times during the term hereof LESSEE shall produce and continue in force pooled risk coverage equivalent to Comprehensive General or Commercial Liability Insurance, and Workers’ Compensation and Employer’s Liability Insurance. LESSOR shall be named as an additional insured under the pooled risk coverage.

11. Delivery and Quiet Enjoyment. LESSOR shall deliver the Property on the Commencement Date free of any parties in possession not approved by LESSEE and shall provide LESSEE with quiet enjoyment without interference thereafter during the Term.

12. Title. LESSOR warrant further that no third party has superior title or interest in the Property, and that no prior or existing interest shall interfere with the terms of the subject Lease or encumber title prior to close of escrow. LESSOR shall not interfere with LESSEE’s right to quiet enjoyment of the Premises. LESSOR represents and warrants to LESSEE that as of the Effective Date, and throughout the lease term and Option Period, there will be no monetary liens of any type whatsoever encumbering the Leased Premises.

13. Indemnification, Defense and Hold Harmless Obligations. Except for the sole negligence or willful misconduct of LESSOR, their employees and agents, and to the extent permitted by law, LESSEE agrees to indemnify, defend and hold harmless LESSOR from and against any and all losses, liabilities, damages, costs and expenses (including reasonable attorneys’ fees) resulting from claims by third parties for injuries to any person and damage to or theft or misappropriation or loss of property occurring on the Property or caused by LESSEE’s use of the Property. If any action or proceeding is brought against LESSOR by reason of any Attachment 1

3 such claim, then LESSEE, upon notice from LESSOR, shall refer the claim to its pooled risk administrator, currently the California Intergovernmental Risk Authority (“CIRA”) for defense and indemnification.

14. LESSEE Defaults. The occurrence of any one or more of the following events shall constitute a material default and breach of this Agreement by LESSEE:
(a) Any failure by LESSEE to make any payment to or on behalf of LESSOR required hereunder as and when due, where such failure continues for ten (10) days after written notice from LESSOR to LESSEE.
(b). A failure by LESSEE to observe and perform any other provision of this Agreement to be observed or performed by LESSEE, where such failure continues for thirty (30) days after written notice thereof from LESSOR to LESSEE; provided, however, that if the nature of such default is such that the same cannot reasonably be cured within such thirty (30) day period, LESSEE shall not be deemed to be in default if LESSEE shall within such period commence such cure and thereafter diligently prosecute the same to completion.

15. Termination by City without cause.

Upon not less than twelve months prior written notice to District, City has the right to terminate this Lease without cause and without exercising the Purchase Option. Within thirty (30) days of giving such notice of termination, City shall pay District a termination fee equal to twelve months of lease payments as provided in Section 5. The Parties agree that such payment represents liquidated damages in lieu of all other actual damages to LESSOR. The Parties agree such liquidated damages are reasonable under the circumstances existing of the Effective Date of this agreement.

16. Surrender of Premises. Upon expiration or termination of this Agreement, LESSEE shall quit and surrender the Premises to LESSOR.

II

OPTION AGREEMENT

1. Option. , LESSEE shall have an option to purchase the Property at any time during the term of the Lease. The LESSEE shall exercise the option to purchase by giving LESSOR written notice (“Option Notice”) that LESSEE is exercising the option to purchase the Property.

2. Conditions to Exercise of Purchase Option. The LESSEE’s right to exercise the purchase option during the Option Period is subject to the following conditions.

2.1. Terms of Purchase of the Property. To validly exercise the Option, LESSEE shall give an Option Notice. The date when the notice is given is “the Option Notice Date.”

2.2. Purchase Price. LESSOR agrees to accept from LESSEE and LESSEE agrees to pay LESSOR the Early Purchase Price corresponding to the month of the next rent payment date following the date of the Option Notice as shown on the Lease Payment Schedule in Exhibit B. The Early Purchase Price is the sum of the total payments of principal for the full term of the Lease Agreement ($499,999) less the sum of principal payments received by LESSOR since Attachment 1

4 the Commencement Date. If LESSEE did not exercise the early purchase option by the end of the lease term, LESSOR agrees to accept from LESSEE a bargain purchase option of $1.00 to purchase the Property at the end of the lease term at the discretion of the LESSEE. LESSEE may provide written notice to LESSOR no later than 30 days before the lease term ends of its intention to purchase the Property for $1.00 at the lease term end.

2.3. Condition of Title. Title to the Property shall be free and clear of all liens, except for any property taxes not yet due, existing recorded easements approved by LESSEE, CC&R’s, or recorded deed restrictions, and all leases, liens, easements and encumbrances not approved by LESSEE prior to Close of Escrow, as provided in paragraph 2.4(b), below.

2.4. Escrow. LESSEE shall open escrow with Title Company within five (5) days from the Option Notice Date (“Purchase Escrow”). The parties shall deliver escrow instructions to the escrow agent within 14 days from the Option Notice Date, which shall include the following:
(a) Closing date. Escrow for the acquisition of the Property shall close within sixty (60) days from the Option Notice Date unless otherwise extended by the mutual written consent of LESSEE and LESSOR.
(b) Preliminary title report and title insurance. LESSEE shall have 10 business days from the Option Notice Date to approve a preliminary title report. LESSEE may disapprove the report only if exceptions are reported which did not appear in the preliminary title report issued May 1, 2026, excepting any taxes and assessments due. If LESSEE disapproves the report, it must provide written notice of such disapproval to the LESSOR. Upon giving such notice, LESSEE shall have no further obligations under this Agreement. If LESSEE fails to provide such timely written notice, it shall be deemed to have waived all objections to title. The Title Company must issue prior to closing a CLTA or, at LESSEE’S option and expense, an ALTA title insurance policy in the amount of the total purchase price, listing only those exceptions approved by LESSEE as provided in this Section 2.4(b).
(c) LESSOR Disclosures. LESSOR discloses the following information concerning the condition of the Property:
(i) Flood Hazard Area Disclosure. The Property or a portion thereof []is []is not [check one] located within a Federal Emergency Management Agency (FEMA) "Special Flood Hazard Area."
(ii) Geologic Hazard Zone. The Property []is []is not [check one] located within a Special Studies Zone as designated under Public Resources Code §§ 2021-2625. (d) Closing costs. LESSOR shall each pay all escrow fees. LESSEE shall pay all title insurance costs of said conveyance. LESSEE shall pay property taxes and assessments due during the term of the Lease. Any other fees, costs or taxes shall be paid by each party in accordance with escrow instructions to Title Company.

Attachment 1

5 (f) Payment of purchase price. LESSEE shall deposit the Purchase Price with the Title Company by certified check or electronic funds transfer on or before the date established for the Close of Escrow.

3. Miscellaneous provisions.

3.1 Notices. Except as otherwise expressly provided herein, any written notice required by this Agreement shall be deemed given and received when personally served by personal delivery, overnight delivery or email or 48 hours after being placed in the United States mail with proper first-class postage prepaid, and addressed as follows:

To LESSEE: To LESSOR:

Attention: Ukiah City Manager Attention Willow General Manager Ukiah Civic Center Willow County Water District
300 Seminary Ave. 151 Laws Avenue
Ukiah, CA 95482 Ukiah, CA 95482
Email: [email protected] Email: [email protected] Any party hereto may give notice of an address change under the provisions of this paragraph and thereafter all notices shall be given to that address.

3.2 Counterparts. This Agreement may be executed and delivered in any number of counterparts, each of which, when executed and delivered shall be deemed an original and all of which together shall constitute the same agreement. Facsimile or electronic signatures will have the same legal effect as original signatures.

3.3 Waivers. No waiver of any breach of any covenant or provision contained herein will be deemed a waiver of any preceding or succeeding breach thereof, or of any other covenant or provision contained herein. No extension of time for performance of any obligation or act will be deemed an extension of time for performance of any other obligation or act except those of the waiving party, which will be extended by a period of time equal to the period of the delay.

3.4 Successors and Assigns. This Agreement may not be assigned by either Party in whole or in part without the prior written consent of the other Party. This Agreement is binding upon and inures to the benefit of the Parties’ permitted successor and assigns.

3.5 Entire Agreement. This Option Agreement constitutes the entire contract between the parties hereto and may not be modified except by an instrument in writing signed by the party to be charged.

3.6 Time of Essence. LESSEE and LESSOR hereby acknowledge and agree that time is strictly of the essence with respect to each and every term, condition, obligation, and provision hereof.

Attachment 1

6 3.7 Construction. The Parties agree and their respective advisors believe that this Agreement is the product of all of their efforts, that it expresses their agreement and that it should not be interpreted in favor of or against either party.

3.8 Governing Law. The Parties expressly agree that this Agreement will be governed by, interpreted under, and construed and enforced in accordance with the laws of the State of California. The Parties mutually consent to jurisdiction and venue in the courts of Mendocino County and waive any objections to the jurisdiction or venue of such courts. THE PARTIES WAIVE,

TO THE FULLEST EXTENT PERMITTED BY LAW, THE RIGHT TO TRIAL BY JURY IN

ANY LITIGATION ARISING OUT OF OR RELATING TO THIS LEASE, THE RELATIONSHIP OF LANDLORD AND TENANT, TENANT’S USE OR OCCUPANCY OF THE PREMISES,

AND/OR ANY CLAIM FOR INJURY OR DAMAGE OR ANY EMERGENCY OR STATUTORY REMEDY.

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

3.10 Recordation of Memorandum of Lease and Option. Promptly upon the request of LESSEE, LESSOR agrees to execute and acknowledge a “Memorandum of Lease, Option” in form satisfactory to LESSEE and sufficient for recording in the Official Records of Mendocino County.

3.11 No Third-Party Beneficiaries. This Agreement is solely enforceable by LESSOR AND LESSEE. No other parties are intended to have standing to interpret or enforce this Agreement.

WHEREFORE, this Agreement is made and entered on the Effective Date.

LESSEE LESSOR

CITY OF UKIAH WILLOW COUNTY WATER DISTRICT

By: ________________________ By: __________________________ Sage Sangiacomo, City Manager Ross LaRue, Board Chair

ATTEST:
___________________________
Kristine Lawler, City Clerk
Attachment 1

7 EXHIBIT A

LEGAL DESCRIPTION
The real property located at 151 Laws Avenue, Ukiah,
California, in the City of Ukiah, County of Mendocino,
State of California, commonly known as Assessor’s
Parcel Number (APN) 003-420-47, together with all
improvements thereon.

The complete and precise legal description of the
Property will be found in the Preliminary Title Report, as referenced herein.

Attachment 1

8 EXHIBIT B

LEASE PAYMENT SCHEDULE
The following schedule assumes a principal amount of $499,999 at a fixed 4.15% annual rate, amortized over 60 months, with a separate month 61 payment of $1.00 to exercise the bargain purchase option. Amounts are rounded to the nearest cent and align with the attached reference schedule.

Pmt
No. Month Beg Balance Payment Interest Principal Early Purchase Price 1 July 1, 2025 $499,999.00 $9,242.13 $1,729.16 $7,512.96 $492,486.04 2 2 $492,486.04 $9,242.13 $1,703.18 $7,538.95 $484,947.09 3 3 $484,947.09 $9,242.13 $1,677.11 $7,565.02 $477,382.07 4 4 $477,382.07 $9,242.13 $1,650.95 $7,591.18 $469,790.89 5 5 $469,790.89 $9,242.13 $1,624.70 $7,617.43 $462,173.46 6 6 $462,173.46 $9,242.13 $1,598.35 $7,643.78 $454,529.68 7 7 $454,529.68 $9,242.13 $1,571.92 $7,670.21 $446,859.47 8 8 $446,859.47 $9,242.13 $1,545.39 $7,696.74 $439,162.73 9 9 $439,162.73 $9,242.13 $1,518.77 $7,723.36 $431,439.37 10 10 $431,439.37 $9,242.13 $1,492.06 $7,750.07 $423,689.30 11 11 $423,689.30 $9,242.13 $1,465.25 $7,776.88 $415,912.42 12 12 $415,912.42 $9,242.13 $1,438.36 $7,803.77 $408,108.65 13 July 1, 2026 $408,108.65 $9,242.13 $1,409.47 $7,832.66 $400,275.99 14 14 $400,275.99 $9,242.13 $1,381.32 $7,860.81 $392,415.18 15 15 $392,415.18 $9,242.13 $1,353.11 $7,889.02 $384,526.16 16 16 $384,526.16 $9,242.13 $1,324.83 $7,917.30 $376,608.86 17 17 $376,608.86 $9,242.13 $1,296.50 $7,945.63 $368,663.23 18 18 $368,663.23 $9,242.13 $1,268.11 $7,974.02 $360,689.21 19 19 $360,689.21 $9,242.13 $1,239.66 $8,002.47 $352,686.74 Attachment 1

9 20 20 $352,686.74 $9,242.13 $1,211.15 $8,030.98 $344,655.76 21 21 $344,655.76 $9,242.13 $1,182.58 $8,059.55 $336,596.21 22 22 $336,596.21 $9,242.13 $1,153.95 $8,088.18 $328,508.03 23 23 $328,508.03 $9,242.13 $1,125.26 $8,116.87 $320,391.15 24 24 $320,391.15 $9,242.13 $1,096.51 $8,145.62 $312,245.53 25 July 1, 2027 $312,245.53 $9,242.13 $1,067.70 $8,174.43 $304,071.10 26 26 $304,071.10 $9,242.13 $1,038.83 $8,203.30 $295,867.80 27 27 $295,867.80 $9,242.13 $1,009.90 $8,232.23 $287,635.58 28 28 $287,635.58 $9,242.13 $980.90 $8,261.23 $279,374.35 29 29 $279,374.35 $9,242.13 $951.85 $8,290.28 $271,084.07 30 30 $271,084.07 $9,242.13 $922.73 $8,319.40 $262,764.67 31 31 $262,764.67 $9,242.13 $893.56 $8,348.57 $254,416.10 32 32 $254,416.10 $9,242.13 $864.32 $8,377.81 $246,038.29 33 33 $246,038.29 $9,242.13 $835.03 $8,407.10 $237,631.19 34 34 $237,631.19 $9,242.13 $805.67 $8,436.46 $229,194.73 35 35 $229,194.73 $9,242.13 $776.25 $8,465.88 $220,728.85 36 36 $220,728.85 $9,242.13 $746.77 $8,495.36 $212,233.49 37 July 1, 2028 $212,233.49 $9,242.13 $717.23 $8,524.90 $203,708.59 38 38 $203,708.59 $9,242.13 $687.62 $8,554.51 $195,154.08 39 39 $195,154.08 $9,242.13 $657.95 $8,584.18 $186,569.90 40 40 $186,569.90 $9,242.13 $628.22 $8,613.91 $177,955.99 41 41 $177,955.99 $9,242.13 $598.43 $8,643.70 $169,312.29 42 42 $169,312.29 $9,242.13 $568.58 $8,673.55 $160,638.74 43 43 $160,638.74 $9,242.13 $538.67 $8,703.46 $151,935.27 Attachment 1

10 44 44 $151,935.27 $9,242.13 $508.69 $8,733.44 $143,201.83 45 45 $143,201.83 $9,242.13 $478.65 $8,763.48 $134,438.35 46 46 $134,438.35 $9,242.13 $448.56 $8,793.57 $125,644.78 47 47 $125,644.78 $9,242.13 $418.40 $8,823.73 $116,821.05 48 48 $116,821.05 $9,242.13 $388.18 $8,853.95 $107,967.10 49 July 1, 2029 $107,967.10 $9,242.13 $375.06 $8,867.06 $99,585.11 50 50 $99,585.11 $9,242.13 $344.40 $8,897.73 $90,687.38 51 51 $90,687.38 $9,242.13 $313.63 $8,928.50 $81,758.88 52 52 $81,758.88 $9,242.13 $282.75 $8,959.38 $72,799.50 53 53 $72,799.50 $9,242.13 $251.76 $8,990.36 $63,809.14 54 54 $63,809.14 $9,242.13 $220.67 $9,021.45 $54,787.69 55 55 $54,787.69 $9,242.13 $189.47 $9,052.65 $45,735.04 56 56 $45,735.04 $9,242.13 $158.17 $9,083.96 $36,651.08 57 57 $36,651.08 $9,242.13 $126.75 $9,115.38 $27,535.70 58 58 $27,535.70 $9,242.13 $95.23 $9,146.90 $18,388.80
59 59 $18,388.80 $9,242.13 $63.59 $9,178.53 $9,210.27
60 60 $9,210.27 $9,242.13 $31.85 $9,210.27 $0.00
Totals
(1-60) $554,527.61 $54,528.61 $499,999.00
61 61 $0.00 $1.00 $0.00 $1.00 $0.00
Final
Totals
(1-61)
$554,528.61 $54,528.61 $500,000.00
Totals reflect the total payments, interest, and principal paid over the five-year term, including the $1 bargain purchase option.

Attachment 1

11 EXHIBIT C
APPRAISAL OF 151 LAWS AVENUE
APN 003-420-47
Attachment 1

An Appraisal Report
of
A Single-tenant Office Building
located in
Ukiah, California
Effective date of report: December 09, 2025
Effective date of value: December 05, 2025
for
Maya Simerson
Project Administrator
City of Ukiah
300 Seminary Ave
Ukiah, CA 95482
Keith Sablik, MAI
Certified General Appraiser
203 Photinia Place
Petaluma, CA 94952
(707) 559-5551
151 Laws Ave
Attachment 1

Attachment 1

Keith Sablik, MAI: 151 Laws Ave 1
December 09, 2025
Maya Simerson
Project Administrator
City of Ukiah
300 Seminary Ave
Ukiah, CA 95482
Re: 151 Laws Ave
Ukiah, CA 95482

Dear Ms. Simerson:

Per your request of November 13, 2025, and as required by the Appraisal Institute’s Standards of Valuation Practice, Standard A, I have made the necessary inspection and analysis to appraise the above referenced property. The attached report provides essential data and detailed reasoning employed in reaching my opinion of value.

The purpose of the following report is to develop an opinion of market value of the fee simple interest in the property, as-improved, as of December 05, 2025. The intended use of the report is for negotiations in a potential purchase of the property. The intended user and client of the report is City of Ukiah. This report is not intended for any other use or user.

The property being appraised is an 20,940-sf (0.48-acre) commercially-zoned parcel improved with an average quality/appeal, 3,974-sf, single-tenant office building located within an unincorporated portion of the city of Ukiah, in Mendocino County, California.

The value reported is qualified by certain definitions, limiting conditions, and certifications that are set forth in the attached report. The analysis contained in the report that follows is presented as a summary Appraisal Report.

Based on my analysis, the opinion of market value of the subject property, as set forth, documented, and qualified in the attached report under conditions prevailing on December 05, 2025, is:

FIVE HUNDRED THOUSAND DOLLARS
($500,000)
It has been a pleasure doing business with you. Should you have any questions, please do not hesitate to contact me at (707) 559-5551.

Respectfully submitted,

Keith Sablik, MAI
Certified General Appraisal
CA Lic #AG008653
Attachment 1

2 Keith Sablik, MAI: 151 Laws Ave

TABLE OF CONTENTS
SUMMARY OF SALIENT FACTS 3
PURPOSE OF THE APPRAISAL 5
INTENDED USE and USER 5
INTEREST APPRAISED 5
SCOPE OF WORK 6
DEFINITION OF VALUE 7
ASSUMPTIONS AND LIMITING CONDITIONS 8

IDENTIFICATION OF PROPERTY
 Location 12
 Statement of Ownership/Property History 12
 Legal Description 12
 Tax and Assessment Data 13
 Marketing and Exposure Time 14
AREA DESCRIPTION 15
CITY/NEIGHBORHOOD DESCRIPTION 22
SITE DESCRIPTION 27
 Zoning and Land Use 29
 Plat Map 33
IMPROVEMENT DESCRIPTION 34
 Subject Sketch 35
MARKET ANALYSIS 38
HIGHEST AND BEST USE ANALYSIS 43
 As-If Vacant 44
 As Improved 45
METHODS OF VALUATION 46
SALES COMPARISON APPROACH 47
 Income Data and Ratios 57
INCOME APPROACH 58
 Comparable Lease Analysis 59
 Expense Analysis 67
 Reconstructed Operating Statement 69
RECONCILIATION 70
CERTIFICATION 71
ADDENDA:
 Subject Photographs 73
 Appraiser Qualifications 79
Attachment 1

Keith Sablik, MAI: 151 Laws Ave 3

SUMMARY OF SALIENT FACTS
Assessor’s Parcel Number 003-420-47
Street Address 151 Laws Ave
Ukiah, CA 95482
County Mendocino
Census Tract Number 113.00
Client City of Ukiah
Owner/Seller Willow County Water District
Buyer City of Ukiah
Occupant To be owner-occupied
Site Area 20,940 sf (0.48 acre)
Year Built Circa mid-1900s
Gross Building Area 3,974 sf
Improvements Average quality & appeal, 3,974-sf, single-story, singletenant office building in average condition.

General Plan Land Use SR: Suburban Residential
Zoning C-1: Limited Commercial
Flood Hazard
FEMA map reference #06045C1514G, Zone X (areas
determined to be outside the 0.2% annual chance
floodplain), dated 09/19/2025
Earthquake Hazard
Per the California Dept. of Conservation’s California
Geological Survey, the property is situated in the Ukiah Quadrangle, but is not located on a known fault.

Environmental Hazard
Per the State Water Resource Control Board’s
Geotracker website, there are 6 environmental hazard
sites identified within a 1,000’ radius of the subject. All are marked completed-case closed. There are no
known or noted environmental hazards at the property.

Attachment 1

4 Keith Sablik, MAI: 151 Laws Ave

SUMMARY OF SALIENT FACTS
Present Use Single-tenant office building
Highest and Best Use Single-tenant office building
Property Rights Appraised Fee Simple
Extraordinary Assumptions
A preliminary title report was not provided. The
appraisal is made under the extraordinary assumption
no adverse conditions are to be found in a current title report.

The use of any extraordinary assumption may alter the
outcome of an appraisal if proven false.

Hypothetical Conditions N/A

VALUE INDICATORS
Indicated Value via Sales Comparison Approach $500,000
Indicated Value via Income Approach $495,000
Opinion of Value $500,000
Pending Purchase Price $499,999
Date of Property Inspection December 05, 2025
Date of Value Conclusion December 05, 2025
Date of Appraisal Report December 09, 2025
Attachment 1

Keith Sablik, MAI: 151 Laws Ave 5

PURPOSE OF THE APPRAISAL
The purpose of the appraisal is to estimate the market value of the fee simple interest in the property described hereinafter, subject to the Limiting Conditions later set forth, as of December 05, 2025. Evaluation of the property is made as-improved.

This is an Appraisal Report as defined by Standards Rule 2.2 in the Uniform Standards of Professional Appraisal Practice (USPAP) effective January 01, 2024.

INTENDED USE and USER OF THE APPRAISAL
The intended use of the report is for negotiations in a potential purchase of the property. The intended user and client of the report is City of Ukiah. This report is not intended for any other use or user.

INTEREST APPRAISED
The property interest(s) appraised are identified below:

A fee simple estate is defined as follows:

Absolute ownership unencumbered by any other interest or estate, subject only to the limitations imposed by the governmental powers of taxation, eminent domain, police power, and escheat.

A leased fee estate is defined as follows:

An ownership interest held by a landlord with the right of use and occupancy conveyed by lease to others. The rights of the lessor (the leased fee owner) and the leased fee are specified by contract terms contained within the lease.

A leasehold estate is defined as follows:

The interest held by the lessee (the tenant or renter) through a lease conveying the rights of use and occupancy for a stated term under certain conditions.

Personal property is defined as follows:

Identifiable portable and tangible objects that are considered by the general public to be “personal”, e.g., furnishings, artwork, antiques, gems and jewelry, collectibles, machinery and equipment; all property that is not classified as real estate. Personal property includes movable items that are not permanently affixed to, and part of, the real estate.

Taken from the Dictionary of Real Estate Appraisal, 4th Edition, 2002 Attachment 1

6 Keith Sablik, MAI: 151 Laws Ave

SCOPE OF WORK
The following steps were followed in arriving at the estimate of value included in the appraisal report of the subject property:
 After receiving the assignment, a preliminary search of all available resources was made to determine market trends. A study was made of the area, community, and neighborhood and other significant factors pertinent to the subject property.
 A physical inspection of the property was performed on December 05, 2025. Although due diligence was exercised while at the subject property, the appraiser is not an expert in such matters as hazardous waste, soil contamination, etc., and no warranty is given or implied as to these or other elements outside of analysis of market data. Inspections by various professionals within these fields may be recommended with the final estimate of market value subject to their findings.  The appraiser collected data from a variety of sources, including the property owner, owner’s representative, BAREIS (North Bay Multiple Listing Service), county assessor's office, real estate brokers, and/or the appraiser's own files.
 The highest and best use was then determined considering zoning, the general plan, economic considerations, and surrounding land use.  A more detailed review of the collected data was then performed with the most relevant factors extracted and considered. Comparable properties were examined and, when possible, confirmed with parties involved with the transactions. Additionally, a physical inspection of the front-exteriors of the properties was also performed. All appropriate data was then analyzed to arrive at a conclusion of value.  The appraisal report was prepared in accordance with standards dictated by the Appraisal Foundation in the Uniform Standards of Professional Appraisal Practices (USPAP), as well as in accordance with Title XI of FIRREA. The intent of the report is to lead the reader systematically through the appraisal process leading to conclusions similar to those of the appraiser.
 The report is intended to comply with 1) Interagency Appraisal and Evaluation Guidelines; and 2) USPAP.
 The appraiser did not take into consideration any prohibited basis, such as race, color, religion, sex, familial status or national origin, in developing and reporting the appraisal.
 Delivery of the appraisal report to the client constituted the completion of the assignment.

Attachment 1

Keith Sablik, MAI: 151 Laws Ave 7

DEFINITION OF VALUE
Market Value1
is defined as follows:

Market value means the most probable price which a property should bring in a competitive and open market under all conditions requisite to a fair sale, the buyer and seller each acting prudently and knowledgeably, and assuming the price is not affected by undue stimulus.

Implicit in this definition is the consummation of a sale as of a specified date and the passing of title from seller to buyer under conditions whereby:
(1) Buyer and seller are typically motivated;
(2) Both parties are well informed or well advised, and acting in what they consider their own best interests;
(3) A reasonable time is allowed for exposure in the open market; (4) Payment is made in terms of cash in U.S. dollars or in terms of financial arrangements comparable thereto; and
(5) The price represents the normal consideration for the property sold unaffected by special or creative financing or sales concessions granted by anyone associated with the sale.
1 Code of Federal Regulations, revised January 01, 2009: Title 12-Banks and Banking, Chapter V-Office of Thrift Supervision, Department of the Treasury, Part-(Appraisals) 564.2g, including verbatim the grammatical and punctuation errors.

Attachment 1

8 Keith Sablik, MAI: 151 Laws Ave

ASSUMPTIONS AND LIMITING CONDITIONS
Assumptions and Limitations of Appraisal
This appraisal is for no other purpose than property valuation, and the appraiser is neither qualified nor attempting to go beyond that narrow scope. The reader should be aware that there are also inherent limitations to the accuracy of the information and analyses contained in the appraisal. Before making any decisions based on the information and analyses contained in this report, it is important to read this entire section to understand these limitations.

Appraisal is Not a Survey
It is assumed that the utilization of the land improvements is within the boundaries of the property lines of the property described and that there are not encroachments or easements unless noted within the report.

No survey of the property has been made by the appraiser and no responsibility is assumed in connection with such matters. Any maps, plat maps, or drawings reproduced and included in this report are intended only for the purpose of showing area relationships. The reliability of the information contained on any such map or drawing is assumed by the appraiser and cannot be guaranteed to be accurate. A surveyor should be consulted if there are any concerns about boundaries, setbacks, encroachments, easements, or other survey matters.

Legal Aspects of the Appraisal
No responsibility is assumed for matters of a legal nature that affect title to the property, boundaries, encumbrances, easements, or other defects of title. The appraiser was not provided with an abstract of title for the property being appraised and the appraiser has not made an examination of one.

It is assumed that the real property is in full compliance with all applicable federal, state, and local environmental regulations and laws unless non-compliance is stated. A comprehensive examination of laws and regulations affecting the subject property was not performed for this appraisal.

It is assumed that all applicable zoning, use regulations, and restrictions have been complied with, unless stated otherwise. Information and analyses shown in this report concerning these items is based only on a preliminary investigation. Any questions should be addressed to local zoning or land use officials or other qualified individuals.

It is assumed that all required licenses, permits, or other necessary documentation from the appropriate authority has been or can be obtained or renewed for any use on which the value estimate is based. If any questions arise concerning any area stated in this paragraph, a qualified individual should be consulted.

All mortgages, liens, encumbrances, leases, and servitude have been disregarded unless so stated within the report. The property is appraised as though under responsible ownership and competent management.

Attachment 1

Keith Sablik, MAI: 151 Laws Ave 9

ASSUMPTIONS AND LIMITING CONDITIONS
Use and Extent of This Appraisal
The appraiser will not be required to give testimony or appear in court for any reason related to this appraisal unless prior arrangements have been made.

Possession of this report, or copy thereof, does not presume right of publication. The report may not be used by any person other than the party to whom it is addressed without the prior written consent of the appraiser, and only with proper written approval from the appraiser and only in its entirety.

Neither all nor any part of the contents of this report, or copy hereof, shall be conveyed or utilized for advertising purposes, public relations, new sales, or any other media without the prior written consent of the appraiser.

Use of this report is subject to the requirement of the Appraisal Institute relating to review by its duly authorized representative.

Acceptance and/or use of this appraisal report constitutes acceptance of the foregoing general assumptions and general limiting conditions.

Appraisal Is Not an Engineering or Property Inspection Report No environmental impact studies were provided in conjunction with this report. It is assumed that there are no hidden or unapparent conditions of the property, sub-soil, or structures that would render it more or less valuable. No responsibility is assumed for such conditions, or for the engineering that may be required to discover such factors. Since no engineering tests were made, no liability is assumed for soil conditions. Sub-surface rights (mineral and oil) were not considered in making this appraisal.

Wells and septic systems, if any, are assumed to be in good working condition and of sufficient size and capacity for the stated highest and best use.

The appraiser is not an environmental expert and does not have the expertise necessary to determine the existence of environmental hazards such as the presence of toxic wastes, asbestos, or hazardous building material, or any other environmental hazards noted on the subject or surrounding properties. If the appraiser has any knowledge of any problems of this nature which would create a significant problem, they are disclosed in this report.

Nondisclosure should not, however, be taken as an indication that such a problem does not exist; an expert in the field should be consulted if any interested party has questions on environmental factors.

Attachment 1

10 Keith Sablik, MAI: 151 Laws Ave

ASSUMPTIONS AND LIMITING CONDITIONS
No chemical or scientific tests were performed by the appraiser on the subject property; it is assumed that the air, water, ground, and general environment associated with the property, present no physical or health hazard of any kind unless otherwise noted in the body of the appraisal report. It is further assumed that the subject does not contain any type of dump site and that there are no underground tanks leaking toxic or hazardous chemicals into the groundwater or environment unless otherwise noted in the report.

Appraisal Is Made Under Conditions of Uncertainty with Limited Data As evident from the limitations presented, above, this appraisal has been performed with a limited amount of data. Data limitations result from a lack of certain areas of expertise by the appraiser, the inability of the appraiser to view certain portions of the property, the inherent limitations of relying upon information provided by others, etc.

Before relying on any statement made in this appraisal report, concerned parties should contact the appraiser for the exact extent of data collection on any point which they believe to be important to decision making.

Information provided by local sources, such as government agencies, financial institutions, accountants, attorneys, and others, is assumed to be true, correct, and reliable. No responsibility for the accuracy of such information is assumed by the appraiser.

The comparable sales data relied upon in the appraisal is believed to be from reliable sources. Though all the comparables were examined, it was not possible to inspect them all in detail. The value conclusions are subject to the accuracy of said data.

Engineering analysis of the subject property was neither provided nor made as a part of this appraisal report.

All values shown in the appraisal report projections are based on the appraiser's analysis as of the date of the appraisal. The values may not be valid in other time periods or as conditions change.

Since projected mathematical models and other projections are based on estimates and assumptions which are inherently subject to uncertainty and variation depending upon evolving events, they are not represented as results that will actually be achieved.

This appraisal is an estimate of value based on an analysis of information known to the appraiser at the time the appraisal was made. The appraiser does not assume any responsibility for incorrect analysis because of incorrect or incomplete information.

Opinions and estimates expressed herein represent the appraiser's best judgment but should not be construed as advice or recommendation to act.

Attachment 1

Keith Sablik, MAI: 151 Laws Ave 11

ASSUMPTIONS AND LIMITING CONDITIONS
Appraisal Report Limitations
Appraisal reports are technical documents addressed to the specific technical needs of the client. Casual readers should be cautioned about the limitations and possible misinterpretation of the information contained in this report and further understand that this report does not contain all of the information gleaned by the appraiser concerning the subject property or the real estate market. While no factors believed to be significant were knowingly withheld, the possibility exists that the appraiser may have information of significance to others; due to the appraiser’s limited acquaintance of the property and the appraiser’s specifically limited expertise, such information may not seem to be of import to the appraiser.

The appraiser should be contacted with any questions before this report is relied upon as a basis for decision making.

Attachment 1

12 Keith Sablik, MAI: 151 Laws Ave

IDENTIFICATION OF PROPERTY
Location
The subject property is located in the northern portion of the State of California, within the south-central portion of the County of Mendocino, in an unincorporated, southern portion of the City of Ukiah. Specifically, the property is situated west of US 101, on the south side of Laws Ave, between S State St to the east and S Dora St to the west.

The subject is identified as assessor’s parcel number 003-420-47 and is commonly referenced as 151 Laws Ave, Ukiah, CA.

Statement of Ownership/Property History
A preliminary title report was not provided. The appraisal is made under the extraordinary assumption no adverse conditions are to be found in a current title report. Per public records, interest in the property is vested in:

Willow County Water District
The property was purchased by the current owner on March 01, 1995 for $130,000, via document #95-02923.

The City of Ukiah has submitted an offer to purchase the property via a lease-purchase agreement, in the amount of $499,999. The transaction is between the municipality and a community water district that is being folded into the city jurisdiction.

The property was not listed on the market prior to the current offer being made.

According to available records and data sources, there has been no other market activity or transfer of the property in the past five years.

Legal Description
N/A
Attachment 1

Keith Sablik, MAI: 151 Laws Ave 13

IDENTIFICATION OF PROPERTY
Tax and Assessment Data
As result of the passage of California Proposition 13 (or the Jarvis-Gann Initiative) in 1978, real property taxes in the State of California are limited to 1% of market value, based upon the assessor's market value estimate for the 1975 base year; unless there is a transfer of ownership, new construction, or the property is leased on a long-term basis. Whenever any of the foregoing occurs, the property is reassessed at full market value. If there is no reassessment, the assessed value is increased at 2% annually. Proposition 13 limits the annual real property taxes to 1% of the assessed value plus an amortized amount for voter approved bonded indebtedness.

The property resides within tax rate area 154154. Due to its municipal ownership, the property is not subject to current taxes. If it had been so, a tax rate of 1.210% plus direct charges of approximately $300 are estimated based upon data obtained from nearby properties.

Attachment 1

14 Keith Sablik, MAI: 151 Laws Ave

IDENTIFICATION OF PROPERTY
Marketing Period and Exposure Time
The following definitions are taken from the Dictionary of Real Estate Appraisal, 4th Edition, 2002.

Marketing Period

1. The time it takes an interest in real property to sell on the market sub-sequent to the date of an appraisal.

2. Reasonable marketing period is an estimate of the amount of time it might take to sell an interest in real property at its estimated market value during the period immediately after the effective date of the appraisal; the anticipated time required to expose the property to a pool of prospective purchasers and to allow appropriate time for negotiation, the exercise of due diligence, and the consummation of a sale at a price supportable by concurrent market conditions.

Assumptions are made that the property will be marketed through professionals experienced with the particular type of property and that all normal marketing tools will be employed during the listing period. Additionally, the property will be offered for sale at a reasonable value relative to its market value and that neither buyer nor seller are under any duress to execute the sale.

Exposure Time

1. The time a property remains on the market.

2. The estimated length of time the property interest being appraised would have been offered on the market prior to the hypothetical consummation of a sale at market value on the effective date of the appraisal; a retrospective estimate based on an analysis of past events assuming a competitive and open market. Exposure time is always presumed to occur prior to the effective date of the appraisal. The overall concept of reasonable exposure encompasses not only adequate, sufficient and reasonable time but also adequate, sufficient and reasonable effort. Exposure time is different for various types of real estate and value ranges and under various market conditions.

Listing periods for the five properties utilized in the sales comparison approach ranged from 16 days up to 132 days, with an average time of 74 days or approximately 2.5 months on the market. A broader review of the market finds most properties in the region selling within a 3- to-6-month period.

Based upon this analysis, the exposure time for the property at the stated opinion of value is estimated between 3 and 6 months. Anticipating no major changes in market conditions over the next year, a similar time frame is estimated for the marketing period.

Attachment 1

Keith Sablik, MAI: 151 Laws Ave 15

AREA DESCRIPTION
Geography and Economics of
Mendocino County
Mendocino County is situated in the
northwest coastal region of California and
is bounded by Humboldt and Trinity
Counties to the north; Tehama, Glenn and
Lake Counties to the east; Sonoma County
to the south; and the Pacific Ocean to the
west. Mendocino County is 100 miles north
of San Francisco on the U.S. Highway 101
corridor, and covers an area of
approximately 3,878 square miles. It ranks
15th in size compared to the 58 counties in
the State of California, but falls to 37th rank
when relative populations of these counties
are compared. There are only four
incorporated cities (towns) in the county, in
order of size: Ukiah, Fort Bragg, Willits, and
Point Arena. Approximately, 70% of the
population lives in the unincorporated
areas of the county.

The headwaters of the Russian River are located in Mendocino County, and its rich bottomland supports many small and mostly organic farms that grow fruits and vegetables, while ranches raise sheep and cattle. Mendocino County offers a wide variety of topography, climate, and vegetation; from tidal flatlands of the coastline to rugged mountain terrain, with a number of fertile valleys and a large plain. The climate is considered mild with lows rarely dropping below freezing in the winter and highs in the summer average mid to high 90s.

The Coastal Mountain Range presents a significant geographic barrier, and divides the coastal and interior regions of the county. On the eastern side of the Coastal Mountain Range is Mendocino County’s interior, which consists of a series of deep valleys running north and south and contains the bulk of the county’s population.

Ukiah is the largest city and County seat. Mendocino College, with a 127-acre permanent campus, and an enrollment of +/- 5,000 students, is located 3 miles north of downtown Ukiah, and is a major employer for the area. Just east of Ukiah in the community of Talmage, is the 488-acre 'City of Ten Thousand Buddhas', one of the nation’s largest Buddhist universities/colonies. It is situated at the site of the former Mendocino State hospital.

Attachment 1

16 Keith Sablik, MAI: 151 Laws Ave

AREA DESCRIPTION
The economic base of the region has been in transition for decades. The following table indicates some of the largest employers in Mendocino County (ranked by number of full-time employees):

County of Mendocino
Ukiah Unified School District
Mendocino College
Georgia Pacific West
Productive People Empl. Services
Retech
Mendocino Co. Office of Education
Rainbow Construction
Harwood Products Inc.

Mendocino Coast Hospital
City of Ukiah
Savings Bank of Mendocino County
AM&D
Howard Frank R. Memorial Hospital
Fetzer Vineyards
Source: Upstate California Economic Development Council Source: www.cityofukiah.com
The economy of Mendocino County has historically been centered on agriculture and resource extraction – primarily timber and fishing. However, both the timber and fishing industries have been in decline for several decades due to the over-extraction and consequent dwindling of these resources. Of the three dozen former mills in the county, only a handful remain open, and these are mainly remanufacturing mills that that turn sawn logs into molding and other products. The timber and fishing industries have been replaced with tourism within the county.

However, it is a cyclical industry that is dependent on worldwide economic conditions. Prior to the recession, the Transient Occupancy Tax (TOT) collections for the county peaked in 2007-08 at $3,846,841. By 2009-10, they had fallen to $3,255,978 as the full impact of the recession took hold. Subsequent years saw near-steady growth until 2022-23, when TOT began to decline, leading to a 2023-24 figure of $8,145,097 (Mendocino County Tax Collector).

Other visitor-serving businesses such as restaurants, gas stations, and entertainment venues are also trending upward. Indian casinos are another growing visitor-serving service. There are currently four along State Route 101, in or near Hopland, Redwood Valley, Willits and Laytonville.

Attachment 1

Keith Sablik, MAI: 151 Laws Ave 17

AREA DESCRIPTION
The table below reflects the change in average monthly industry-occupancy employment levels in the county between 2010 and 2020:

Mendocino County Employment by Industry
Source: State of California Employment Development Department Government employment is the largest single source of employment in the county, followed by retail trade, leisure/hospitality, and educational/health services. This highlights the shift away from manufacturing, which was once a major employer in the region. The county’s employment is now focused upon services with the public sector coming in as number one in employment.

Employment figures declined in all industries between 2019 and 2020, reflecting the on-set of the Covid-19 pandemic in early 2020 and its devasting impact upon all sectors of employments, but most notably in Leisure & Hospitality, which was down 31.3%. By 2024, employment has returned to near pre-pandemic levels.

Industry 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2023 vs 2024 Farm 1,530 1,460 1,060 1,180 1,230 1,200 1,140 1,530 1,400 1,410 1,390 -1.4% Mining, Logging and Construction 1,320 1,330 1,280 1,560 1,630 1,600 1,420 1,550 1,580 1,630 1,760 8.0% Manufacturing 2,490 2,520 2,550 2,460 2,380 2,290 2,130 2,500 2,510 2,400 2,220 -7.5% Wholesale Trade 830 730 810 800 780 740 720 760 710 690 590 -14.5% Retail Trade 4,380 4,620 4,750 4,760 4,960 4,830 4,330 4,710 4,500 4,370 4,110 -5.9% Transportation, Warehousing & Utilities 650 680 770 760 770 800 750 880 830 880 930 5.7% Information 270 260 240 240 230 210 200 190 210 210 180 -14.3% Financial Activities 1,050 1,040 1,030 1,070 1,090 1,060 1,020 1,010 920 980 920 -6.1% Professional & Business Services 1,660 1,670 1,660 1,740 1,850 1,960 1,790 1,860 1,790 1,970 1,910 -3.0% Educational & Health Services 5,570 5,490 5,720 5,790 5,830 5,890 5,570 5,590 5,940 6,100 6,580 7.9% Leisure & Hospitality 4,230 4,250 4,240 4,330 4,260 4,320 2,970 3,920 4,010 3,950 3,950 0.0% Other Services 770 780 790 820 770 730 610 600 720 680 710 4.4% Federal Government 260 270 270 260 270 270 290 250 260 260 250 -3.8% State & Local Government 6,770 6,870 7,000 7,130 6,880 6,910 6,100 6,370 6,630 6,820 7,030 3.1% Total: All Industries 31,780 31,970 32,170 32,900 32,930 32,810 29,040 31,720 32,010 32,350 32,530 0.6% % Private 77.9% 77.7% 77.4% 77.5% 78.3% 78.1% 78.0% 79.1% 78.5% 78.1% 77.6% % Public 22.1% 22.3% 22.6% 22.5% 21.7% 21.9% 22.0% 20.9% 21.5% 21.9% 22.4% Attachment 1

18 Keith Sablik, MAI: 151 Laws Ave

AREA DESCRIPTION
The table below reflects the historical labor force totals for Mendocino County since 2003:

Source: Bureau of Labor Statistics
The data indicates a moderate annual decline in the total workforce over the past ten years.

As of 2019, Mendocino County’s unemployment rate was 4.0%; down from a recent peak of

11.3% in 2010 and below its pre-recession low of 5.2% in 2006. This followed the general pattern observed within most counties in the state: a sharp increase in unemployment figures as the recession takes hold in late-2008, followed by steady improvement from 2011-onward.

Mendocino County’s rate of recovery, however, lagged those of the nine Bay Area counties, which benefited from much stronger job growth throughout multiple industries.

In April 2020, unemployment increased dramatically to 14.7% in the county (16.1% in California), reflecting the on-set of the covid-19 pandemic and its devastating impact on shortterm unemployment figures due to government mandated business closures and shelter-inplace orders. By the end of 2020, unemployment had risen to an average rate of 8.9%. As businesses were allowed to re-open, the rate fell to a normalized-level of 5.2% for 2024.

Year Labor Force Employment Unemployment
Unemployment
Rate
2003 45,310 42,190 3,120 6.9%
2004 44,033 41,198 2,835 6.4%
2005 43,926 41,389 2,537 5.8%
2006 43,351 41,097 2,254 5.2%
2007 43,179 40,804 2,375 5.5%
2008 43,287 40,321 2,966 6.9%
2009 43,325 38,878 4,447 10.3%
2010 43,347 38,461 4,886 11.3%
2011 42,755 38,077 4,678 10.9%
2012 42,776 38,623 4,153 9.7%
2013 43,497 40,126 3,371 7.7%
2014 41,000 38,160 2,840 6.9%
2015 40,207 37,853 2,354 5.9%
2016 39,644 37,555 2,089 5.3%
2017 39,628 37,842 1,786 4.5%
2018 39,715 38,151 1,564 3.9%
2019 38,934 37,388 1,546 4.0%
2020 37,015 33,723 3,292 8.9%
2021 36,920 34,622 2,298 6.2%
2022 37,183 35,653 1,530 4.1%
2023 37,377 35,621 1,756 4.7%
2024 (Prelim.) 38,361 36,381 1,979 5.2%
Attachment 1

Keith Sablik, MAI: 151 Laws Ave 19

AREA DESCRIPTION
Demographics
Approximately 68% of the population lives in the unincorporated areas of the county. The 2000 Census saw a county population of 86,265. By January 01, 2025, this figure had by 4.1% to 89,827.
(California Department of Finance: E-5 Population and Housing Estimates)

The state’s Dept. of Finance data indicates there were 888,250 households in the county as of January 01, 2025. The median household income was $67,454 in 2023, with a December 2024 cost-of-living index of 90.6 (below the U.S. average of 100), making it a notably more affordable environment than the Bay Area.

Housing
Housing in Mendocino County is predominantly detached single-family units, making up approximately 70% of the total stock. They include modern subdivisions, custom homes, and small and large acreage rural properties, such as ranch homes or cabins.

According to BAREIS (Multiple Listing Service) statistics, the average price for a single-family residence, countywide in 2024, was $589,738 (median price $500,000) for a 1,529-sf, 3- bedroom/2-bathroom residence. Manufactured homes account for approximately 13% of the housing stock. These dwellings are the preferred primary residence of many persons in the area due to their affordability and low maintenance. Multi-family housing is limited, accounting for 13.8% of the housing stock with most situated in the four incorporated communities. The county has ample vacant land that is planned for residential development; however, the rate of countywide residential growth is expected to remain moderate due to limited infrastructure of its communities and the availability of sewer and water services. Many of the unincorporated residential areas must rely on private water sources and septic systems, and natural gas is not available in the county.

COUNTY/CITY 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Mendocino County
Fort Bragg 7,633 7,672 7,449 7,540 7,494 7,451 7,409 7,153 7,014 7,179 7,187 Point Arena 444 448 437 438 430 438 435 443 439 445 452 Ukiah 16,156 16,186 15,889 16,081 15,942 15,951 15,526 16,080 15,929 16,108 16,325 Willits 4,860 4,879 5,092 5,133 5,107 5,065 5,040 4,920 4,858 4,830 4,838 Balance Of County 59,070 59,193 60,225 59,350 59,232 58,803 58,259 61,403 60,924 60,914 61,025 Incorporated 29,093 29,185 28,867 29,192 28,973 28,905 28,410 28,596 28,240 28,562 28,802 County Total 88,163 88,378 89,092 88,542 88,205 87,708 86,669 89,999 89,164 89,476 89,827 Attachment 1

20 Keith Sablik, MAI: 151 Laws Ave

AREA DESCRIPTION
Transportation
Mendocino County is served by the major roadway U.S. Highway 101. Local bus service is provided by Mendocino Transit Authority, and regional service is provided by Golden Gate Transit system. Railway access in Mendocino County is currently not in service. The former Northwestern Pacific Rail line holdings, which shave historically served the area have been acquired by the State of California. Some 316 miles of rail right–of-way located in northern California are currently managed by the North Coast Railroad Authority (NCRA), which was created in 1989. This agency has been under-funded since inception, and there is currently significant deferred maintenance to the railway lines. However, the California Transportation Commission recently approved funding as part of the $286 billion Transportation Equity Act approved by congress in 1985, to begin restoration work to the railroad line in phases with the eventual aim of providing a viable rail operation thru the southern portion of the rail line (including portions of Mendocino County). Ukiah Municipal public airport currently offers no major carrier service, and it has been forced to restrict the scope of its activities due to recent construction of “big box” retailers in the vicinity of established flight patterns. It is unlikely that major carrier service will be allowed at the current airport location, although there has been some discussion in local news services about re-locating the municipal airport to a location northeast of the current city limits.

Conclusion
Typical of most of California, the economic base of Mendocino County has recovered from the recent recession, whose lingering effects had put all sectors of the economy on hold for several years. Continued improvement in the economy will most likely continue the economic growth at both the local and regional level.

The attendant problems of growth, such as sewage collection, treatment, and disposal, water supply, and traffic congestion, are all matters currently being studied by local governmental agencies. Resolution of these infrastructure constraints will be determinative of future growth, both short- and long-term, within the county and its communities.

Attachment 1

Keith Sablik, MAI: 151 Laws Ave 21
AREA DESCRIPTION: Area Map
Attachment 1

22 Keith Sablik, MAI: 151 Laws Ave

CITY/NEIGHBORHOOD DESCRIPTION
Geographically, Ukiah is situated in a small agricultural valley 614 feet above sea level. The town is located 110 miles North of San Francisco and 60 miles from the Mendocino coast.

Ukiah was incorporated in 1876. Ukiah has excellent recreation facilities including Lake Mendocino just to the north and Cow Mountain Recreation area to the west. In addition Ukiah has numerous city and regional parks.

Freeway mileage from Ukiah to:

San Francisco: 113 Eureka: 160
Santa Rosa: 62 Ft. Bragg: 60
Seattle: 754 Lakeport: 32
Willits: 25 Los Angeles: 520
Williams: 79 Sacramento: 148
Climate
Source: Ukiah Chamber of Commerce
Unlike many other cities close to the coast, Ukiah is relatively fog-free. This fact, coupled with warm days and cool evenings, gives Ukiah an ideal climate for those who want four seasons but don't want extreme temperatures. Summer temperatures are regularly in the mid-90s with cooling in the evenings. Winter temperatures are in the 50s with lows in the 30s-40s. Average total annual rainfall is approximately 38.5 inches a year.

Population
Ukiah has experienced slow population growth with only a 1% increase between 2004 and 2014. As of January 01, 2025, the population of Ukiah proper was 16,325. According to the 2020 Census data, per capita income in the city was $28,282 with an average household income of $50,207. Approximately 21.7% of its population lived below the poverty level versus

15.3% statewide. As to higher education, 18.2% of the residents have a bachelor’s degree or higher. As to age, 24.8% of the population is under 18 years versus 14.5% 65 years and over.

Attachment 1

Keith Sablik, MAI: 151 Laws Ave 23

CITY/NEIGHBORHOOD DESCRIPTION
Industry Employment
Industry employment in Ukiah and the surrounding area is mixed with government, retail & service, manufacturing, and timber industry workers. Agriculture also plays a role in the employment for the area; industries include wineries, vineyards, pear orchards and wood products. Ukiah is the largest producer of Bartlett pears in the world, and has large packing and export operations in support of this crop. The number of small non-agricultural types of manufacturers and service industries continue to rise while timber industry activities are in decline. As with many rural communities, State and local government agencies also constitute a significant part of local employment.

Housing
Overall, housing in the Ukiah area is mixed with older individual construction homes and newer suburban-type developments. As of January 01, 2025, there were 7,066 housing units in the city, of which 60% (4,256) were single-family residences (both attached and detached), 440 were mobile homes, and the remainder comprised of multi-family residential properties. The housing vacancy rate at that time was 5.3% versus a countywide vacancy of 9.8%.

Attachment 1

24 Keith Sablik, MAI: 151 Laws Ave

CITY/NEIGHBORHOOD DESCRIPTION
Neighborhood Description
(North)
(GoogleEarth, dated 06/02/2021. Keith Sablik, MAI)
The subject is located in an unincorporated neighborhood lying on the southern outskirts of the city of Ukiah, approximately 2-miles south of the city’s central business district (star). Its immediate neighborhood is defined by city limits to the north, US 101 (yellow line) to the east, rural residential lands to the south, and a ridgeline to the west. Land uses are comprised of approximately 30% residential, 10% commercial, and 60% vineyard or rural-residential lands.

The Ukiah Municipal Airport (A) – a single-runway facility with maintenance and storage facilities for civilian aircraft (and home to a CalFire airbase and an air ambulance service) – is located ¼-mile east of the subject. The property is subjected to increased noise levels; though minimal flight traffic mitigates its impact upon the area.

Attachment 1

Keith Sablik, MAI: 151 Laws Ave 25

CITY/NEIGHBORHOOD DESCRIPTION
Most commercial activity, including the Mendocino County Superior Court, is concentrated along State St or School St. The former is the only major commercial corridor through the city.

Within the downtown core, most uses range from small single-tenant structures to two-story multi-tenant buildings. Many were developed in the late-1800s to early-1900s and are of generally average to good-average quality. Design/appeal varies from fair to good, with those that have retained their vintage architecture retaining the greatest appeal. Most properties display average maintenance levels.

Residential uses are predominantly situated west of State St, though several pocket areas are situated between State St to the west and US 101 to the east. Subject’s specific neighborhood is comprised of a single-family residential tract development on the west side of State St.

Developed between the 1950s and 1970s, most are average quality, single-story residences displaying average maintenance levels. Multi-family residences, like the subject, are limited to a few former motels/inns that have been converted into fair quality/appeal housing.

The limited commercial activity in the neighborhood is situated along State St, interspersed amongst other uses. In general, the segment is comprised of fair to average quality single- and multi-tenant properties developed from the mid-1900s onward. Most are of average design/appeal and display average maintenance levels.

The bulk of the land use to the south of the subject is comprised of rural-residential and vineyard lands.

Overall, subject’s general location has average appeal to the commercial markets due to the quality and care of existing properties and its proximity to the downtown.

Attachment 1

26 Keith Sablik, MAI: 151 Laws Ave
CITY/NEIGHBORHOOD DESCRIPTION: Location Map

Attachment 1

Keith Sablik, MAI: 151 Laws Ave 27

SITE DESCRIPTION
Site Summary:

Assessor’s Parcel Number 003-420-47
Street Address 151 Laws Ave
Ukiah, CA 95482
Site Area 20,940 sf (0.48 acre)
Shape Rectangle
Topography Level
Street Frontage Approximately 150’ on the south side of Laws Ave General Plan Land Use SR: Suburban Residential
Zoning C-1: Limited Commercial
Flood Hazard
FEMA map reference #06045C1514G, Zone X (areas
determined to be outside the 0.2% annual chance
floodplain), dated 09/19/2025
Earthquake Hazard
Per the California Dept. of Conservation’s California
Geological Survey, the property is situated in the Ukiah Quadrangle, but is not located on a known fault.

Environmental Hazard
Per the State Water Resource Control Board’s
Geotracker website, there are 6 environmental hazard
sites identified within a 1,000’ radius of the subject. All are marked completed-case closed. There are no
known or noted environmental hazards at the property.

Utilities
Municipal water & sewer provided by the City of Ukiah;
gas & electricity provided by PG&E; trash collection by Ukiah Waste Solutions; telecommunication services
provided by a variety of private carriers.

Drainage Appears adequate

Attachment 1

28 Keith Sablik, MAI: 151 Laws Ave

SITE DESCRIPTION
Present Use Single-tenant office
Easements
A title report was not provided for review.

It is assumed there are no known or noted adverse
easements at the subject that would impact its use or
value.

Off –Site Improvements Illuminated, asphalt streets w/ concrete curbs, gutters, & sidewalks
Soils No soils study has been reported; soils appear
adequate to support existing use; no soil contamination apparent from initial inspection.

Overview
The subject parcel is identified as APN: 003-420-47 and is commonly referenced as 151 Laws Ave. It is situated west of US 101, on the south side of Laws Ave, between S State St to the east and S Dora St to the west. Laws Ave is secondary, east/west street providing ingress & egress to and from a residential neighborhood lying west of S State St. At the subject, it is an illuminated, 2-lane asphalt roadway with concrete curbs, gutters, & sidewalks. Parallel parking is available on both sides of the street.

The subject maintains approximately 150’ along the south side of the street. Traffic volume at the subject is light throughout the day. Subject’s visibility is rated fair-average based upon the light traffic volume.

Per public records, this is an 20,940-sf (0.48-acre) parcel. It is a rectangle-shaped, interior lot with level topography throughout. Landscaping is limited to a few bushes. Additional site improvements include full public utilities, grading and an asphalt parking lot with stripedparking for 22 vehicles, plus a gated/fenced side yard with additional, unmarked vehicle parking. The former produces a better-than-average parking ratio of 5.5 spaces per 1,000 sf of gross building area (GBA). Based upon a gross building area of 3,974 sf, the property has a floor area ratio (FAR) of 0.19, resulting in some surplus land.

Based upon the attributes cited above, the subject has good site utility and average appeal.

Attachment 1

Keith Sablik, MAI: 151 Laws Ave 29

SITE DESCRIPTION
Land Use and Zoning
The property resides within the SR: Suburban Residential land use designation under the county’s existing General Plan. Specifically, it is zoned: C-1: Limited Commercial District.

The following excerpt is taken from the county planning department’s web site:

C-1: Limited Commercial District
This district is intended to create and enhance areas where public facilities and services are available. It is also intended to facilitate a balance between jobs and housing, provide for the possibility of live/work spaces, and provide additional opportunities for affordable housing. A limited number of retail commercial goods and services are desired primarily to meet day to day needs of local residents and to facilitate livable/walkable communities and live/work opportunities. Typically this district would be applied in conjunction with residential uses and would permit only those uses which do not significantly increase traffic, noise or other impacts
The regulation emphasizes a broad range of retail and office uses, as well as single- & multifamily residences.

Development standards under the C-1 zoning include:

1. Minimum lot size:
a. Parcels with water & sewer districts: None
b. Residential: 6,000 sf
c. Parcels with water or sewer districts: 12,000 sf
d. Parcels outside of a water or sewer district: 40,000 sf.

2. Maximum Dwelling Density, for parcels within municipal water & sewer districts:
a. 1 single-family residence per 6,000 sf parcel
b. 1 Multi-family residential unit per 1,600 sf

3. Building Height Limits: 35’

4. Setbacks
a. Front: 20’
b. Side: None required, except that any side or rear yard contiguous to any district other than commercial or industrial shall have a minimum side yard of five (5) feet
c. Rear: None required, except that any side or rear yard contiguous to any district other than commercial or industrial shall have a minimum side yard of twenty (20) feet d.

5. Parking:
a. Retail and Office: 1 space per 300 sf of gross floor area Based upon these regulations, the subject site and use are legal and conforming.

Attachment 1

30 Keith Sablik, MAI: 151 Laws Ave

SITE DESCRIPTION
Flood Hazard
Subject is located in FEMA map reference #06045C1514G, Zone X (areas determined to be outside the 0.2% annual chance floodplain), dated 09/19/2025.

The property is not located in a FEMA-designated flood-hazard area.

Earthquake Hazard
Per the California Dept. of Conservation’s California Geological Survey, the property is located in the Ukiah Quadrangle, but is not situated on a known fault zone.

In general, much of California is traversed by numerous faults – including many as-yet-known – that produce frequent and sometimes notable seismic activity. The proximity to a fault has proven to have little or no impact upon an area’s marketability; though it may trigger additional building requirements to mitigate damage from an earthquake.

Attachment 1

Keith Sablik, MAI: 151 Laws Ave 31

SITE DESCRIPTION
Environmental Hazard
Per the State Water Resource Control Board’s Geotracker website, there are 6 environmental hazard sites identified within a 1,000’ radius of the subject. All are marked completed-case closed.

Though it is noted the appraiser is not an expert in the detection of such matters, a cursory inspection finds no known or noted environmental hazards at the subject.

Attachment 1

32 Keith Sablik, MAI: 151 Laws Ave
SITE DESCRIPTION: Aerial Photograph
(North)
(GoogleEarth. Date 04/12/2025. Keith Sablik, MAI)
The approximate shape of the subject is shown in red. Adjacent and nearby uses include multi- and single-family residential properties to the north, south and west; and a fire station (A) to the east, followed by S State St (yellow line) and the Ukiah municipal airport (B).

The subject has unimpeded vehicular access to and from Laws Ave.

Attachment 1

Keith Sablik, MAI: 151 Laws Ave 33
SITE DESCRIPTION: Assessor’s Parcel Map
Attachment 1

34 Keith Sablik, MAI: 151 Laws Ave

IMPROVEMENT DESCRIPTION
Building Summary:

Type Single-story, single-tenant office building
Gross Building Area 3,974 sf
Year Built Circa mid-1900s
Construction Detail:

Foundation Concrete slab
Construction Type Masonry (concrete block) & wood frame Roof Covering Composition shingle (new)
Siding T-111 wood paneling & concrete block
Windows Single-pane, aluminum sash & dual-pane, vinyl sash Interior Walls Finished sheetrock & concrete block
Ceiling (8’) Finished sheetrock & (9’) acoustic drop-panel Floor Coverings Linoleum tile, carpet & ceramic tile
HVAC (3) roof-mounted HVAC units (per aerial images)
providing warmed/cooled air to the building
Lighting Fluorescent lighting units
Plumbing Fixtures Standard grade (three 2-fixture restrooms & break room)
Electrical Standard grade (unknown capacity; assumed adequate for use)
Insulation Unknown
Security Standard locks
Other 756-sf metal canopy for covered storage of vehicles, equipment and/or materials

Attachment 1

Keith Sablik, MAI: 151 Laws Ave 35
IMPROVEMENT DESCRIPTION: Building Sketch

Attachment 1

36 Keith Sablik, MAI: 151 Laws Ave

IMPROVEMENT DESCRIPTION
Improvement data was obtained from a physical inspection of the interior and exterior of the property on December 05, 2025. Building areas are calculated by an automated sketch program (Apex IV) based upon measurements taken during the inspection.

The subject is improved with an average quality, single-story, single-tenant office building estimated to have been constructed mid-1900s. Its design has no significant architectural detailing, as is common of the era, and has average appeal to the market.

The structure has a gross building area of 3,974 sf and is 100% efficient.

Construction is masonry (concrete block) & wood framing over a concrete slab foundation.

Exterior materials include T-111 wood panel & concrete block siding; a composition shingle roof; and a combination of single-pane, aluminum sash & dual-pane, vinyl sash windows.

The floor plan includes a central lobby, customer counter, open office space, five private offices, conference room, breakroom, storage/shop room and three 2-fixture restrooms.

The floor plan functions well for its intended use with no noted obsolescence in its design.

Attachment 1

Keith Sablik, MAI: 151 Laws Ave 37

IMPROVEMENT DESCRIPTION
Interior materials include finished sheetrock & concrete block; 8’ to 9’ finished sheetrock & acoustic drop-panel ceilings; carpet, linoleum tile & ceramic floors; fluorescent lights; and three roof-mounted HVAC units (per aerial images) providing warmed/cooled air to the building. Security measures include standard door locks.

Additional improvements include a 756-sf metal canopy for covered storage of vehicles, equipment and/or materials.

The roof and one of the HVAC units are newly installed. Overall, the property appears to be well maintained and is in average condition with no apparent major repairs needed at the time of inspection.

The actual age of the improvements is unknown, but have an effective age of 20 yrs. Based upon a 50-yr economic life (Marshall Valuation Service cost index depreciation tables: Offices, Average, Class C), the building has an anticipated remaining economic life of 30 yrs Attachment 1

38 Keith Sablik, MAI: 151 Laws Ave

MARKET ANALYSIS
Office Trends
The subject is located in Northern California in Mendocino County – a largely rural county whose main industries are government service, retail, agriculture and tourism. Specifically, the subject is located in the downtown core of the incorporated city of Ukiah – the largest city in the county and home to the county seat. The city’s commercial markets – retail and office – are of moderate size with the both sectors largely serving the local populace.

National and local markets in nearly all industries have recovered from the recent recession, which was rooted in the collapse of the housing market in 2005/2006. Rising mortgage defaults subsequently triggered a collapse within the financial markets by the summer of 2008, cementing it as the country’s worst recession since the 1930s.

The recession’s impact upon unemployment figures was significant within Mendocino County.

Vacancy levels, elevated in the early 2000s because of the softening economy attributed to the events of September 11, 2001 and the dot-com bust, declined by mid-decade as the local economy benefited from an overall improvement of economic conditions on both the local and national levels. By 2006-2007, however, the evolving collapse of the residential real estate market was starting to be felt in unemployment numbers, which began to climb from low 5%- levels. The 2008 collapse of the financial markets and economic recession resulted in a peak county unemployment rate of 11.3% in 2010. Since then, the rate steadily improved to a 2019 average rate of 4.0%.

In April 2020, unemployment increased dramatically to 14.7% in the county (16.1% in California), reflecting the on-set of the covid-19 pandemic and its devastating impact on shortterm unemployment figures due to government mandated business closures and shelter-inplace orders. By the end of 2020, unemployment had risen to an average rate of 8.9%. As businesses were allowed to re-open, the rate fell to a normalized-level of 5.2% for 2024.

Attachment 1

Keith Sablik, MAI: 151 Laws Ave 39

MARKET ANALYSIS
CoStar is reporting a Q3-2025 office base of 571,425 sf for Ukiah, with a vacancy rate of 1.66% on 9,480 sf. Countywide, there is a total base of 851,556 sf with a vacancy rate of 1.39% on 11,825 sf. Ukiah accounts for 67.1% of the countywide office space and 80.17% of the total vacancy, indicating it is performing below market expectations relative to its size.

Vacancy rates trended upward during the recession and immediately thereafter, with a downward trend commencing by 2014 as was typical of most markets. Post-recession economic gains resulted in the near-steady decline in vacancy rates until late 2018. Since then, vacancy levels have generally trended upward. Initially, this was likely due to a slowing economy after multiple years of strong growth, only to be followed by the on-set of the pandemic by early 2020. By late-2021, vacancy rates began to stabilize only to trend upward again by mid-2022, this time driven by economic concerns and the Federal Reserve’s aggressive campaign to battle inflation via quarter-over-quarter interest rate increases that have had a slowing effect upon most real estate markets.

One aspect that has come to light since the pandemic is the decline in demand for medium to large office space. The proven viability of mass telecommuting during the pandemic has allowed many large companies to re-think their office space requirements, with many shifting to full-time telecommuting or a hybrid work environment (employees working remotely with limited days in office) that demand less office space.

Attachment 1

40 Keith Sablik, MAI: 151 Laws Ave

MARKET ANALYSIS
Corresponding to the rise and fall of vacancy rates, lease rates in the Ukiah market followed an inverse path as seen in the following chart (CoStar).

Lease rates declined 20%-plus during- and post-recession, excluding owner concessions which increased (free rent and/or allowances) over the same period. At their lowest point in recent years, office lease rates fell to an average of $1.28/sf in Q3-2012. Improving economic conditions and vacancy rates in the interim years resulted in a Q3-2025 average of $1.84/sf, marking a 43.8% increase from its recessionary low. Currently, lease rates range from NNN to full service with most falling between $1.00 to $2.00 per square foot. The typical lease includes some provisions for tenant improvements and/or free rent; though the degree of concessions/allowances has diminished in light of the improving market conditions. Most include annual rent adjustments (either flat or tied to CPI) and at least one renewal option.

A continued slow decline, specifically related to medium- & large-tenant office space, is forecasted over the coming year due to the pandemic-related shift in the work-force environment; though some recent return-to-the-office announcements (primarily on a hybrid schedule) amongst the business community may signal a stabilization of the market.

Attachment 1

Keith Sablik, MAI: 151 Laws Ave 41

MARKET ANALYSIS
Capitalization rates for office space throughout Mendocino County spiked during the recession, climbing to a high of 10.0% in Q3-2009. As seen in the chart, rates slowly returned to stabilized levels in the mid-7.00% range by 2017.

By 2016, capitalization rates began a climb that was originally attributed to concerns over the economy, only to be followed by the on-set of the pandemic, which saw a notable, negative shift in the demand for medium-to-large office properties. Most recently, the Federal Reserve’s aggressive policy against inflation has caused lending rates to climb, adding to concerns that some form of recession may be looming on the near horizon. Together, these factors have resulted in a Q3-2025, countywide capitalization rate of 9.49%, with a stable-to-upward trend anticipated over the next couple of years – again, specifically related to medium- and largeoffice market environment.

Amongst the small owner-occupied offices, such as the subject, capitalization rates remain in the 5% to 7% range, reflecting market-participants who place little to no emphasis on the potential income of a building when making a purchasing decision.

Attachment 1

42 Keith Sablik, MAI: 151 Laws Ave

MARKET ANALYSIS
With the recession, office market values saw declines of 30%-plus since their peak in 2007 with increased marketing periods observed in the face of limited buyers and tightening credit.

Post-recession, positive signs within the market included a steady, low unemployment rate, increases in leasing activity, and rising lease rates, resulting in upward pressure upon property values. Ukiah’s office market values responded favorably to this environment, rising to an average price/sf of $176/sf by Q3-2025 – an 83.3% increase over Q4-2009’s low of $96/sf, but down 12.4% from a high of $201/sf in Q4-2021
Overall, the Ukiah office market had benefitted from strong consumer confidence levels, low unemployment rates, and a positive business environment. By late 2019, signs of a softening of the market had surfaced, with many analysts warning that the overall economy was due for a correction after an extended, post-recession period of growth; and that the then-environment was fragile and could falter in light of concerns over national & international debt levels, continued unrest/fighting in the world, a lack of confidence if government leaders, and/or a worsening of unemployment figures.

In early 2020, this environment was exacerbated by the on-set of the world-wide pandemic.

Most communities and many industries were initially, severely depressed by the evolving, ongoing threat of the covid-19 (corona) virus pandemic and government-enacted mandates to curb transmission. As vaccines became commonly-available by early 2021, easing of socialdistancing mandates alleviated the financial distress amongst some, but not all industries.

Currently, rising inflation driven by pandemic-related supply-chain issues and the recent, ongoing war in Ukraine have added to the economic uncertainty of both national and regional economies. In mid-2022, the Federal Reserve began an aggressive campaign to battle these trends via quarter-over-quarter, interest rate increases that appear have had a slowing effect upon most real estate markets.

Looking at the long-term prognosis for medium-to-large office properties, it is anticipated that space requirements for larger companies will continue to decline for a period as forcedtelecommuting during the pandemic has illustrated to many that telecommuting – either fully or under a hybrid system (limited in-office days & shared employee work space) – is a viable alternative to the traditional office environment.

Smaller, typically owner-occupied office space has proven more stable within the current environment and are anticipated to fare better than their larger counterparts in the coming years.

Attachment 1

Keith Sablik, MAI: 151 Laws Ave 43

HIGHEST AND BEST USE ANALYSIS
Highest and best use is defined as:

The reasonably probable and legal use of vacant land or an improved property, which is physically possible, appropriately supported, financially feasible, and that results in the highest value. The four criteria the highest and best use must meet are legal permissibility, physical possibility, financial feasibility, and maximum productivity.* To determine the highest and best use, the appraiser needs to complete the following analysis:

1. What are the possible physical uses of the site?

2. What legal restrictions or limitations are being imposed as a result of zoning and/or deed restrictions?

3. What uses would feasibly produce the highest present value for the site?

4. What is the highest and best use from among the feasible uses? *Taken from the Dictionary of Real Estate Appraisal, 4th Edition, 2002, Appraisal Institute

Attachment 1

44 Keith Sablik, MAI: 151 Laws Ave
HIGHEST AND BEST USE: As If Vacant:

Legal Permissibility – The property resides within the SR: Suburban Residential land use designation under the county’s existing General Plan. Specifically, it is zoned: C-1: Limited Commercial District. The regulation emphasizes a broad range of retail and office uses, as well as single- & multi-family residences.

The subject parcel is legal and conforming to regulations.

Physical Possibility – The physical characteristics of the site appear to be adequate for any of the allowable uses cited above. Topography is level; drainage appears to be adequate; public utilities are available; soil type appears to be adequate based on surrounding development; and, the subject is not located in a known earthquake or flood hazard zone.

Financial Feasibility – The property is situated in a mostly-residential area with uses on its specific block dominated by multi-family residential properties. Allowable multi-family residential development would conform to the general neighborhood. In today’s market, however, development costs for a multi-family residence often exceed market values due to the latter’s recessionary decline, making most new projects unfeasible.

Maximal Productivity – The maximally productive use of the site is a small multi-family residence conforming to development standards imposed under the zoning regulation. Current economic conditions, however, may make such a development financially infeasible, which would result in an interim highest and best use as hold for development.

Attachment 1

Keith Sablik, MAI: 151 Laws Ave 45
HIGHEST AND BEST USE: As Improved
Legal Permissibility – The property resides within the SR: Suburban Residential land use designation under the county’s existing General Plan. Specifically, it is zoned: C-1: Limited Commercial District. The regulation emphasizes a broad range of retail and office uses, as well as single- & multi-family residences.

The subject property is developed with a single-tenant office building and is conforming in both its site and use to current zoning regulations.

Physical Possibility – The structure is configured for single-tenant office occupancy. It is illsuited to any other use without significant renovation cost; though the number of suites is flexible.

Financial Feasibility – Three options are considered under financial feasibility: leave the property as-is, modify it, or demolish it. The latter is supported with the underlying land value less demolition costs exceeds the value as improved. In today’s market, subject’s land value does not exceed its value as-improved, precluding the option of demolition.

Subject’s existing office use increases the productivity of the site. As improved, it is financially feasible at this time.

Maximal Productivity – The subject’s existing use as a single-tenant office property is identified as the most productive considering the legal, physical, and financial aspects of the property.

Attachment 1

46 Keith Sablik, MAI: 151 Laws Ave

METHODS OF VALUATION
In the appraisal of real estate, there are three separate appraisal methods that are customarily utilized for the purposes of determining the value of a given property. The nature of the property determines which one or more of these methods is utilized and which receives the greatest emphasis in the reconciliation.

The value concluded via the cost approach is comprised of two components: the value of the underlying land as if vacant and available for development and the estimate of the reproduction or replacement cost of the improvements. This method typically receives the greatest emphasis when valuing special purpose or newer properties for which reliable construction costs can be determined. Limited land sales erode the reliability of this method, as does the difficulty in accurately assessing all forms of depreciation. Furthermore, the typical investment buyer within the segment will place much greater weight on the sales comparison and income approaches. The cost approach, though considered, is not utilized in this report in the determination of market value.

The sales comparison approach requires several distinct steps. The appraiser must first identify recent sales of similar type properties in the competing market place. These sales must then be confirmed and qualified to determine that they represent "arm's length" transactions with no unusual conditions attached. The resulting data must then be compared with the appraised property and supportable adjustments must then be made for any significant variances. The final step is then to correlate the adjusted data to provide an indicated market value for the subject. The approach is essential in the process of appraisal for most real property. This approach is given much consideration by market participants and is utilized within this appraisal.

Value via the income approach can be determined through the use of direct capitalization or yield capitalization (discounted cash flow) analysis. The former requires the appraiser first determine the economic income capable of being generated by the subject, commensurate with its highest and best use. A stabilized pro-forma operating statement is developed based on this economic income and the anticipated operating expenses required to secure the stabilized income stream. This anticipated net operating income is then converted to value estimate via a capitalization rate determined derived from the market. Both methods are given much considered by participants within subject’s market segment.

Direct capitalization is utilized in the appraisal of the subject property.

Attachment 1

Keith Sablik, MAI: 151 Laws Ave 47

SALES COMPARISON APPROACH
The sales comparison approach is defined as:

A set of procedures in which a value indication is derived by comparing the property being appraised to similar properties that have been sold recently, then applying appropriate units of comparison and making adjustments to the sale prices of the comparables based on the elements of comparison.2

Traditionally, an estimate procedure in which the market value estimate is predicated upon the price paid in actual market transactions with current listings setting the upper limits of value. It is a process of analyzing sales of similar recently sold properties in order to derive an indication of the most probable selling price for the subject property under the conditions set forth within the appraisal report. The reliability of this process is dependent upon:

1. the availability of comparable data

2. the verification of that data

3. the degree of comparability and the extent of necessary adjustments for the differences

4. the absence of non-typical conditions affecting the sales price of the properties.

The following pages summarize the sales used in this approach to value. In turn, they are followed by a quantitative comparison analysis and the final estimate of value derived from this approach.

As is typical of market participants, a price-per-square foot unit of comparison is utilized. 2 The Dictionary of Real Estate Appraisal 4th Edition, Appraisal Institute Attachment 1

48 Keith Sablik, MAI: 151 Laws Ave

SALES COMPARISON APPROACH
Comparable #1
Address 780 S Dora St
Ukiah, CA
Sale Price $407,725
Price/SF $135.91
Date of Sale 04/25/2025
Document # 25-03378
Lot Size 19,166 sf
Year Built 1960
Construction Wood Frame
Quality/Appeal Average
Condition Average
Gross Building Area 3,000 sf
FAR 0.16
Use Office
Parking 12 spaces
Seller Redwood Childrens Services Inc
Buyer William B Binns And Michaela M Binns
Revocable Trust
Data Sources MLS 325012190/Public Records
Comments: Sale of an average quality/appeal, single-tenant, office building located on a secondary roadway in Ukiah. The wood frame building was constructed in 1960 and was in average condition at time of sale; selling after 63 days on the market.

Attachment 1

Keith Sablik, MAI: 151 Laws Ave 49

SALES COMPARISON APPROACH
Comparable #2
Address 115 E Smith St
Ukiah, CA
Sale Price $381,000
Price/SF $138.24
Date of Sale 08/20/2024
Document # 24-07124
Lot Size 5,450 sf
Year Built 1921
Construction Masonry
Quality/Appeal Average
Condition Good-Average
Gross Building Area 2,756 sf
FAR 0.51
Use Office
Parking 4 spaces
Seller Thomas F Parducci Charitable
Remainder Trust
Buyer Mendocino County Resource
Conservation District
Data Sources MLS 324022549/Public Records
Comments: Sale of an average quality/appeal, single-tenant, office building located on a secondary roadway in Ukiah. The masonry building was constructed in 1921 and was in goodaverage condition at time of sale; selling after 63 days on the market.

Attachment 1

50 Keith Sablik, MAI: 151 Laws Ave

SALES COMPARISON APPROACH
Comparable #3
Address 166 E Gobbi St
Ukiah, CA
Sale Price $495,000
Price/SF $221.97
Date of Sale 02/02/2024
Document # 24-00905
Lot Size 9,009 sf
Year Built 1930
Construction Wood Frame
Quality/Appeal Average
Condition Average
Gross Building Area 2,230 sf
FAR 0.25
Use Office
Parking 8 spaces
Seller David Groezinger
Buyer LS Health Properties LLC
Data Sources MLS 323930092/Public Records
Comments: Sale of an average quality/appeal, dual-tenant, office building located on an arterial roadway in Ukiah. The wood-frame building was constructed in 1930 and was in average condition at time of sale; selling after 16 days on the market.

Attachment 1

Keith Sablik, MAI: 151 Laws Ave 51

SALES COMPARISON APPROACH
Comparable #4
Address 1367 S Dora St
Ukiah, CA
Sale Price $500,000
Price/SF $106.38
Date of Sale 08/28/2023
Document # 23-06841
Lot Size 27,617 sf
Year Built 1966
Construction Wood Frame
Quality/Appeal Average
Condition Average
Gross Building Area 4,700 sf
FAR 0.17
Use Office & Medical Office
Parking 22 spaces
Seller Vineyard Valley Inn LLC
Buyer J & L Valley Properties LLC
Data Sources MLS 323019105/Public Records
Comments: Sale of an average quality/appeal, two-building, multi-tenant, office complex located on a secondary roadway in Ukiah. The wood frame buildings were constructed in 1966 and were in average condition at time of sale; selling after 132 days on the market.

Attachment 1

52 Keith Sablik, MAI: 151 Laws Ave

SALES COMPARISON APPROACH
Comparable #5
Address 617 S State St
Ukiah, CA
Sale Price $675,000
Price/SF $192.86
Date of Sale 02/15/2023
Document # 23-01200
Lot Size 13,416 sf
Year Built Unknown
Construction Masonry & Wood Frame
Quality/Appeal Average
Condition Good-Average
Gross Building Area 3,500 sf
FAR 0.26
Use Office
Parking Unknown, ample
Seller Frederick Wong Living Trust
Buyer Benjamin & Anela Kobetz
Data Sources MLS 322090026/Public Records
Comments: Sale of an average quality/appeal, single-tenant, office building located on an arterial roadway in Ukiah. The wood-frame & masonry building was in good-average condition at time of sale; selling after 96 days on the market.

Attachment 1

Keith Sablik, MAI: 151 Laws Ave 53

SALES COMPARISON APPROACH

Attachment 1

54 Keith Sablik, MAI: 151 Laws Ave

SALES COMPARISON APPROACH

Subject Comparable 1 Comparable 2 Comparable 3 Comparable 4 Comparable 5 Address 151 Laws Ave 780 S Dora St 115 E Smith St 166 E Gobbi St 1367 S Dora St 617 S State St City Ukiah Ukiah Ukiah Ukiah Ukiah Ukiah
Data Source Inspection MLS 325012190 MLS 324022549 MLS 323930092 MLS 323019105 MLS 322090026 Public Records Public Records Public Records Public Records Public Records Public Records Gross Bldg Area 3,974 3,000 2,756 2,230 4,700 3,500
Site Size (sf) 20,940 19,166 5,450 9,009 27,617 13,416
FAR 0.19 0.16 0.51 0.25 0.17 0.26
Year Built Unknown 1960 1921 1930 1966 Unknown
Construction Type Masonry/Wd Frame Wood Frame Masonry Wood Frame Wood Frame Masonry/Wd Frame Quality/Appeal Average Average Average Average Average Average Condition Average Average Good-Average Average Average Good-Average Parking Spaces 22 12 4 8 22 Ample
Use Office Office Office Office Office/Medical Office Office Date of Sale Pending 04/25/2025 08/20/2024 02/02/2024 08/28/2023 02/15/2023 Doc # 25-03378 24-07124 24-00905 23-06841 23-01200
Exposure Time (days) N/A 63 63 16 132 96
Sale Price $499,999 $407,725 $381,000 $495,000 $500,000 $675,000 Sale Price/SF $125.82 $135.91 $138.24 $221.97 $106.38 $192.86 Transactional Adjustments
Property Rights Fee Simple Fee Simple Fee Simple Fee Simple Leased Fee Fee Simple Adjusted Price $407,725 $381,000 $495,000 $500,000 $675,000 Financing N/A Conventional All Cash All Cash Conventional Conventional Adjusted Price $407,725 $381,000 $495,000 $500,000 $675,000 Conditions of Sale Lease Purchase Typical of Mkt Typical of Mkt Typical of Mkt Typical of Mkt Typical of Mkt Adjusted Price $407,725 $381,000 $495,000 $500,000 $675,000 Expenditures After Sale N/A N/A N/A N/A N/A N/A
Adjusted Price $407,725 $381,000 $495,000 $500,000 $675,000 Market Conditions Average Similar Similar Similar Similar Similar Adjusted Price $407,725 $381,000 $495,000 $500,000 $675,000 Adjusted Price/SF $135.91 $138.24 $221.97 $106.38 $192.86 Property Adjustments
Location Average Superior Superior Superior Similar Superior -10.0% -10.0% -10.0% -10.0%
Quality/Appeal Average Similar Similar Similar Similar Similar Condition Average Similar Superior Similar Similar Superior -5.0% -5.0%
Size (sf) 3,974 Smaller Smaller Smaller Larger Smaller
-4.9% -6.1% -8.8% 3.1% -2.4%
Use Office Office Office Office Office/Medical Office Office -5.0%
Other Canopy & Lot Lot N/A N/A Lot Lot

2.0% 12.0% 7.0% 2.0% 5.0%
Parking Ample Similar Inferior Inferior Similar Similar

1.0% 1.0%
Total Adjustments -12.9% -8.1% -10.8% 0.1% -12.4%
Indicated Price/SF $118.38 $127.04 $198.00 $106.49 $168.95 Attachment 1

Keith Sablik, MAI: 151 Laws Ave 55

SALES COMPARISON APPROACH
Overview
Comparable selection emphasized average to good-average quality/appeal office buildings in the Ukiah market area, having sold from 2023-onward. Greatest consideration was given to properties ranging in size from 2,000 sf to 6,000 sf.

The five closed sales utilized in the analysis are the best available indicators at this time, requiring the fewest adjustments. As is the practice of market participants, a price-per-squarefoot unit of comparison is employed in the approach.

Market Conditions
The five sales occurred between February 2023 and April 2025. Analysis finds there has been no significant change in market values during or since this period, precluding the need for adjustment.

Location
The subject is situated on a secondary roadway in an unincorporated portion of southern Ukiah. Its location has average appeal to the office market.

Comparable 4 is located in subject’s general market area and has similar location appeal.

Comparables 1, 2, 3 and 5 are located within central Ukiah, amongst greater concentrations of commercial uses that result in superior location appeal.

Quality/Appeal
The subject has average build quality and design/appeal attributes, as do all five indicators.

Condition
Average condition levels are observed on the subject and Comparables 1, 3 and 4. The goodaverage condition levels of Comparables 2 and 5 are superior to the subject and are adjusted accordingly.

Size
The comparables are adjusted for size differences based upon the inverse relationship of size to price (i.e., larger properties typically sell for a lower price/sf and vice versa). At 3,974 sf, subject’s gross building area falls between the comparables, which range in size from 2,230 sf to 4,700 sf. It is smaller than Comparable 4 and larger than all others.

Use
The subject is configured for general office use, as are all four of the five indicators.

Comparable 4 has a mix of general- and medical-office uses. Adjustment is made for the greater cost and value associated with its medical-office space.

Other
The subject parcel includes surplus land area, as well as a metal canopy for covered storage.

Comparables 1 and 4 are the best match of its parcel, but lack a similar or off-setting improvement to subject’s canopy. Comparables 2, 3 and 5 are adjusted for varying degrees of inferior parcel size and their lack of a canopy or off-setting improvement.

Attachment 1

56 Keith Sablik, MAI: 151 Laws Ave

SALES COMPARISON APPROACH
Parking
Parking is evaluated on the basis of number of spaces relative to building size and use.

Subject has ample parking, as do Comparables 1, 4 and 5. Comparables 2 and 3 are adjusted for their inferior, limited on-site parking.

Summary
The adjusted range of the comparables is approximately $105 to $200 per square foot, with four of the five sales ranging from $105 to $170. All are good representatives of subject’s competitive market segment with weight distributed fairly evenly amongst them.

In the final analysis, subject’s $499,999 pending purchase price equates to a price of $125.82/sf, falling at the predominant midrange of the market data, indicating the property is selling at a fair-market level.
3,974 sf @ $125.82/sf = $500,009, rounded to $500,000
The indicated value of the subject, via the sales comparison approach, is $500,000.

Attachment 1

Keith Sablik, MAI: 151 Laws Ave 57

SALES COMPARISON APPROACH
Income Data and Ratios:

The above information is utilized in the derivation of market ratios, specifically in the calculation of overall rates of return (OAR). Little or no income and expense data was provided for the comparables. Forecasted data at the time of their sales are utilized in the analysis.

The comparables present of a range of capitalization rates from 4.17% to 7.66%. Based upon current market conditions and the subject’s location and physical attributes, a midrange capitalization rate of 6.50% is applied to the property and utilized in the income approach found later in the appraisal.

Comparable 1 Comparable 2 Comparable 3 Comparable 4 Comparable 5 Fee Simple/Leased Fee Fee Simple Fee Simple Fee Simple Leased Fee Fee Simple Gross Potential Income $45,000 $39,686 $33,450 $62,040 $54,600 Vac & Coll Loss% 5% 5% 5% 5% 5%
Effectiv e Gross Income $42,750 $37,702 $31,778 $58,938 $51,870 Operating Ex penses $14,963 $13,196 $11,122 $20,628 $18,155 Ex penses/SF $4.99 $4.79 $4.99 $4.39 $5.19
Ex pense Ratio 35% 35% 35% 35% 35%
Net Operating Income $27,787 $24,506 $20,656 $38,310 $33,715 EGIM 9.54 10.11 15.58 8.48 13.01
Ov erall Rate 6.82% 6.43% 4.17% 7.66% 4.99%
Attachment 1

58 Keith Sablik, MAI: 151 Laws Ave

INCOME APPROACH
The income approach is defined in the Dictionary of Real Estate Appraisal, 4th Edition, 2002 as:

A set of procedures through which an appraiser derives a value indication for an income-producing property by converting its anticipated benefits (cash flows and reversion) into property value. This conversion can be accomplished in two ways. One year's income expectancy can be capitalized at a market-derived capitalization rate or at a capitalization rate that reflects a specified income pattern, return on investment, and change in the value of the investment. Alternatively, the annual cash flows for the holding period and the reversion can be discounted at a specified yield rate.

The purpose of the income approach is to determine the present value based on future potential benefits of a property. This is generally measured by the net income which a fully informed person is warranted in assuming the property will produce during its remaining useful life. The property is compared with investments of a similar type and class and the net income is capitalized into a value estimate.

Value via the income approach can be determined through the use of direct capitalization or yield capitalization (discounted cash flow) analysis. The former requires the appraiser first determine the economic income capable of being generated by the subject, commensurate with its highest and best use. A reconstructed operating statement is developed based on this economic income and the anticipated operating expenses required to secure the stabilized income stream. The anticipated net operating income is then converted to value estimate via a capitalization rate determined derived from the market.

Direct capitalization is applied to the subject’s forecasted income stream.

The following data illustrates competitive leases in the subject's market segment followed by a quantitative analysis and comments on the comparison. All lease rates are displayed as price/sf/month.

Attachment 1

Keith Sablik, MAI: 151 Laws Ave 59
INCOME APPROACH: Comparable Lease Analysis
Lease Comparable #1:
2146 S State St
Ukiah, CA
The indicator is a fair-average quality/appeal, 5,630-sf, single-tenant commercial building located on an arterial roadway in Ukiah. The metal frame building was most recently used as a church but can also function as office space. It was in average condition at the time of leasing.

An undisclosed tenant leased the building on April 01, 2025 for a 5-year term, at an initial rate of $0.65/sf/gross.

Attachment 1

60 Keith Sablik, MAI: 151 Laws Ave
INCOME APPROACH: Comparable Lease Analysis
Lease Comparable #2:
495 E Perkins St
Ukiah, CA
The indicator is an average quality/appeal, 4,828-sf, single-tenant office building located on an arterial roadway in Ukiah. The wood frame building was in average condition at the time of leasing.

An undisclosed tenant leased the building on May 23, 2024 for a 3-year term, at an initial rate of $1.24/sf/gross.

Attachment 1

Keith Sablik, MAI: 151 Laws Ave 61
INCOME APPROACH: Comparable Lease Analysis
Lease Comparable #3:
154 E Gobbi St, Suite A
Ukiah, CA
The indicator is part of a good-average quality/appeal, 1,541-sf, dual-tenant office building located on an arterial roadway in Ukiah. The wood-frame building was constructed in 1915 and was in good-average condition at the time of leasing.

An undisclosed tenant leased a 1,201-sf suite on June 05, 2024 for a 1-year term, at a rate of $1.25/sf/gross.

Attachment 1

62 Keith Sablik, MAI: 151 Laws Ave
INCOME APPROACH: Comparable Lease Analysis
Lease Comparable #4:
320 S State St, 2nd Floor
Ukiah, CA
The indicator is part of a good-average quality/appeal, approximate-2,400-sf, multi-tenant office building located on an arterial roadway in Ukiah. The masonry building was in goodaverage condition at the time of leasing.

An undisclosed tenant leased a ~1,200-sf suite on December 13, 2024 for a 1-year term, at a rate of $1.46/sf/gross.

Attachment 1

Keith Sablik, MAI: 151 Laws Ave 63
INCOME APPROACH: Comparable Lease Analysis

Attachment 1

64 Keith Sablik, MAI: 151 Laws Ave
INCOME APPROACH: Comparable Lease Analysis

Subject Comparable 1 Comparable 2 Comparable 3 Comparable 4 Address 151 Laws Ave 2146 S State St 495 E Perkins St
154 E Gobbi St,
Ste. A
320 S State St,
2nd Floor
City Ukiah Ukiah Ukiah Ukiah Ukiah
Year Built Unknown Unknown Uknown Unknown Uknown
Gross Building Area 3,974 5,630 4,828 1,541 2,400
Construction Type Masonry/Wd Frame Metal Frame Wood Frame Wood Frame Masonry Quality/Appeal Average Fair-Average Average Good-Average Good-Average Condition Average Average Average Good-Average Good-Average Parking Spaces 22 Ample Ample Ample Limited
Use Office (See Cmmts) Office Office Office
Date of Survey Dec-2025 Dec-2025 Dec-2025 Dec-2025 Dec-2025 Tenant Name To be owner occupied (Not disclosed) (Not disclosed) (Not disclosed) (Not disclosed) GRA (sf) 3,974 5,630 4,828 1,201 1,200
Date Signed Apr-2025 May-2024 Jun-2024 Dec-2024
Term 5 yrs 3 yrs 1 yr 1 yr
Lease Type est. Gross Gross Gross Gross Gross
Rate/SF $0.65 $1.24 $1.25 $1.46
Transactional Adjustments
Type of Lease est. Gross Gross Gross Gross Gross
Adj Rent/SF $0.65 $1.24 $1.25 $1.46
Concessions N/A None None None None
Adj Rent/SF $0.65 $1.24 $1.25 $1.46
Market Conditions Average Similar Similar Similar Similar Adj Rate/SF $0.00 $0.65 $1.24 $1.25 $1.46
Property Adjustments
Location Average Similar Superior Superior Superior
-10.0% -10.0% -10.0%
Quality/Appeal Average Inferior Similar Superior Superior

5.0% -5.0% -5.0%
Condition Average Similar Similar Superior Superior
-5.0% -5.0%
Size 3,974 Larger Larger Smaller Smaller

5.9% 3.5% -14.0% -14.0%
Use Office (See Cmmts) Office Office Office

10.0%
Other Canopy & Lot Lot N/A N/A N/A

2.0% 12.0% 12.0% 12.0%
Parking Ample Similar Similar Similar Inferior

1.0%
Total Adjustments 22.9% 5.5% -22.0% -21.0%
Indicated Rate/SF $0.80 $1.31 $0.98 $1.15
Attachment 1

Keith Sablik, MAI: 151 Laws Ave 65
INCOME APPROACH: Comparable Lease Analysis
Overview
Comparable selection emphasized average to good-average quality office space within the Ukiah market area, having leased from 2023 onwards. Greatest consideration was given to properties ranging in size from 2,000 sf to 6,000 sf.

Four executed leases are utilized in the analysis. They are the best available indicators at this time, requiring the fewest adjustments. As it typical of market participants, all leases are displayed as rate/sf/month. CAM/net charges, if applicable, are excluded from the displayed rates.

Type of Lease
A gross lease is common to the market and is forecast for the subject. Similar lease types are found on all four comparables.

Market Conditions
The four leases were signed between May 2024 and April 2025. There has been no significant change in market rates since their signings, precluding the need for adjustment.

Location
The subject is situated on a secondary roadway in an unincorporated portion of southern Ukiah. Its location has average appeal to the office market.

Comparable 1 is located in subject’s general market area and has similar location appeal.

Comparables 2 thru 4 are located within central Ukiah, amongst greater concentrations of commercial uses that result in superior location appeal.

Quality/Appeal
The subject is an average quality/appeal, office property. In this regard, it is similar to Comparable 2. Comparable 1 is adjusted upwards for its inferior, fair-average design/appeal; Comparables 3 and 4, downward for their superior, good-average quality/appeal attributes.

Condition
Average condition levels are noted on the subject and Comparables 1 and 2. The goodaverage condition levels of Comparables 3 and 4 are superior and are adjusted accordingly.

Size
Size adjustments are based upon the inverse relationship of rate to size (i.e., larger space will typically lease for a lower price/sf and vice versa). At 3,974 sf, the subject falls between the four indicators, which range in size from 1,200 sf to 5,630 sf. It is smaller than Comparables 1 and 2; larger than Comparables 3 and 4.

Use
The subject is configured for general office use, as are Comparables 2 thru 4. Comparable 1 was most recently utilized as a church, but can function as an office. Its floor plan, though, has inferior functional utility due to two large open rooms with limited build-out.

Attachment 1

66 Keith Sablik, MAI: 151 Laws Ave

INCOME APPROACH: Comparable Lease Analysis
Other
The subject parcel includes surplus land area, as well as a metal canopy for covered storage.

Comparable 1 is the best match of its parcel, but lacks a similar or off-setting improvement to subject’s canopy. Comparables 2 thru 4 are adjusted for parcel size and their lack of a canopy or off-setting improvement.

Parking
Parking is evaluated on the basis of number of spaces relative to building size and use.

Subject has ample parking, as do Comparables 1, 2 and 3. Comparable 4 is adjusted for its inferior, limited on-site parking.

Summary
The analysis produces an adjusted lease rate range of $0.80 to $1.31 per square foot on a gross basis. As a group, they are good indicators of subject’s competitive market segment with weight distributed fairly evenly amongst them.

In the final analysis, the estimated fair-market rate of the subject is based upon a midrange figure of $1.05/sf/gross.

Subject Lease Analysis
The subject is currently owner-occupied and will continue to be so upon completion of the proposed sale.

Based upon the preceding analysis, forecasted income is estimated as follows:
3,974 sf @ $1.05/sf/gross = $4,173/mo.

For purposes of the appraisal, a projected gross monthly income of $4,173/mo. is utilized in the reconstructed operating statement that follows.

Attachment 1

Keith Sablik, MAI: 151 Laws Ave 67
INCOME APPROACH: Expense Analysis
Overview
No operating data was provided for the subject. The following expenses are derived from an evaluation of reported expenses within competing properties in the subject’s market area/segment.

Vacancy & Collection Loss
Defined in the 4th Edition of the Dictionary of Real Estate Appraisal as:

An allowance for reductions in gross potential income attributable to projected vacancy (physical or economic) and potential collection loss considerations. Vacancy is an expected loss in income as a result of periodic vacant space attributable to unrented space and tenant turnover. Credit loss considers nonpayment of rent and can consider units rented at below-market rates (also known as lag vacancy). Vacancy and collection loss is usually estimated on a property-specific basis as part of the reconstructed operating statement in the income capitalization approach and applied, as a percentage, to potential gross income or as a percentage of rentable area of the property; may also refer to a study of vacancy and collection loss in a defined market or submarket.

Long term trend analysis finds a stabilized vacancy rate of 5% is anticipated by knowledgeable market participants, accounting for losses described above in a well maintained, professionally managed property.

A stabilized 5% vacancy and collection loss is utilized in the subject’s income analysis.

Operating Expenses: A gross lease is forecast for the subject. The following estimates are derived from market costs.

Property taxes are derived from a formula by which the indicated value via the approach is multiplied by the estimated tax rate of 1.210%, plus direct charges of approximately $300. The formula requires Excel to utilize a forced circular reference in the calculation.

Insurance costs amongst competitive properties in the region range from $0.50/sf to $0.75/sf.

A forecasted rate of $0.50/sf is applied in the analysis based upon the size and quality of improvements found at the property.

Utility costs are a tenant obligation under a typical gross-lease structure, as are janitorial costs.

Maintenance and repair (M/R) range from $0.50/sf for newer properties to $1.50 for older properties in poor condition. Based upon subject’s age, condition, and size, a stabilized figure of $1.00/sf (GBA) is applied.

Landscape maintenance is included in maintenance & reserves due to its limited size and lowmaintenance nature of its plantings.

Attachment 1

68 Keith Sablik, MAI: 151 Laws Ave
INCOME APPROACH: Expense Analysis
Management is assumed to be professionally handled. Based upon conversations with leasing agents at Keegan & Coppin and Orion Partners, two leading commercial brokerage firms in the region, expenses are typically based upon a graduated scale starting at 5-7% in the first year with subsequent reductions until a stabilized rate of 3% to 6% is attained. The management rate is estimated to be 5% of effective gross income (EGI) based upon subject’s lease type, occupancy, and size.

Replacement reserves are forecasted for the subject. They represent the prudent operation/management of the building and are put in place in anticipation of any future, sudden expenses and/or the normal deterioration and needed replacement of items. Based upon subject’s age, condition, size, and amenities, a 2% reserve is applied.

Capitalization Rates: Capitalization rates are derived from a single year’s net income of a property divided by sale price. This is the most common method used in the valuation of subject’s market segment via the income approach.

The comparables present of a range of capitalization rates from 4.17% to 7.66%. Based upon current market conditions and the subject’s location and physical attributes, a midrange capitalization rate of 6.50% is applied to the property and utilized in the following reconstructed operating statement.

Comparable 1 Comparable 2 Comparable 3 Comparable 4 Comparable 5 Ov erall Rate 6.82% 6.43% 4.17% 7.66% 4.99%
Attachment 1

Keith Sablik, MAI: 151 Laws Ave 69
INCOME APPROACH: Reconstructed Operating Statement
The reconstructed operating statement is derived from forecasted expenses with a stabilized occupancy, producing an estimated gross potential monthly income of $4,173 under a gross lease structure.

Forecasted operating expenses of $15,520 produce a market-typical expense ratio of 32.75% of effective gross income, resulting in a net operating income of $32,052. Applying direct capitalization to the latter, based upon an OAR of 6.50%, value is derived as follows:
$32,052 NOI / 6.50% OAR = $493,108, rounded $495,000
The indicated value of the subject, via the income approach, is $495,000.

POTENTIAL GROSS INCOME $50,076
Less Forecasted Vacancy and Collection Loss 5% ($2,504) EFFECTIVE GROSS INCOME $47,572
Fixed Expenses
Real Estate Tax es 1.2100% (See prior comments) $6,229
Insurance $0.50 Estimated per GBA $1,987
Operational Expenses
Utilities: Tenant obligation under gross lease terms
Janitorial Tenant obligation under gross lease terms
Maintenance & Repairs $1.00 Estimated per GBA $3,974
Supplies Included in maintenance & repairs
Landscape M inimal cost (included in M aint. & Repairs est.) Management 5% EGI $2,379
Replacement Reserves 2% EGI $951
TOTAL EXPENSES Expense Ratio 32.75% $15,520 ($15,520)
NET OPERATING INCOME $32,052
Reconstructed Operating Statement
Attachment 1

70 Keith Sablik, MAI: 151 Laws Ave

RECONCILIATION
Consideration was given to all three approaches to value; though only the sales comparison and income approaches were deemed most relevant to the valuation of the subject.

The sales comparison approach is considered a good indicator of value as direct comparisons are possible. Data within subject’s market segment and market area was felt to be of sufficient quality and quantity as to give much weight to its value conclusion.

The income approach is typically given much weight when appraising income producing properties. The weakness of the approach is the difficulty in gathering income and expense data for the comparable sales. The strength of the approach is that it allows consideration to the subject's net income, which is the actual income to an investor. In this analysis, adequate office lease data from subject’s market area was available, resulting in good reliance upon the value conclusion.

The two approaches faced similar limitations in their development and indicate a narrow value range. Weight is distributed evenly amongst them in the final value conclusion.

Subject’s $500,000 (rounded) proposed purchase price is well supported by the appraisal, indicating the property is selling at a fair-market value.

Based on my analysis, the opinion of market value of the subject property, as set forth, documented, and qualified in the attached report under conditions prevailing on December 05, 2025, is:

FIVE HUNDRED THOUSAND DOLLARS
($500,000)

Indicated value via the sales comparison approach $500,000 Indicated value via the income approach $495,000
Opinion of Value $500,000
Attachment 1

Keith Sablik, MAI: 151 Laws Ave 71

CERTIFICATION
I certify that, to the best of my knowledge and belief:
 The statements of fact contained in this report are true and correct.  Unless otherwise noted in writing, the appraiser has done similar assignments to the subject property and has the knowledge and experience to complete this assignment competently.
 The reported analyses, opinions, and conclusions are limited only by the reported assumptions and limiting conditions and are my personal, impartial, and unbiased professional analyses, opinions, and conclusions.
 I have no present or prospective interest in the property that is the subject of this report and no personal interest with respect to the parties involved.  I have performed no other services, as an appraiser or in any other capacity, regarding the property that is the subject of this report within the three-year period immediately preceding acceptance of this assignment.
 I have no bias with respect to the property that is the subject of this report or to the parties involved with this assignment.
 My engagement in this assignment was not contingent upon developing or reporting predetermined results.
 My compensation for completing this assignment is not contingent upon the development or reporting of a predetermined value or direction in value that favors the cause of the client, the amount of the value opinion, the attainment of a stipulated result, or the occurrence of a subsequent event directly related to the intended use of this appraisal.  My analyses, opinions, and conclusions were developed, and this report has been prepared, in conformity with the Uniform Standards of Professional Appraisal Practice.  I have made a personal inspection of the property that is the subject of this report.  No one provided significant real property appraisal assistance to the person signing this certification.
 The reported analyses, opinions and conclusions were developed, and this report has been prepared, in conformity with the requirements of the Code of Professional Ethics and Standards of Professional Appraisal Practice of the Appraisal Institute.  The use of this report is subject to the requirements of the Appraisal Institute relating to review by its duly authorized representatives.
 As of the date of this report, I have completed the continuing education program of the Appraisal Institute.

Keith Sablik, MAI
Certified General Appraisal
CA Lic #AG008653
Attachment 1

72 Keith Sablik, MAI: 151 Laws Ave

ADDENDA

1. Subject Photographs

2. Appraiser Qualifications
Attachment 1

Keith Sablik, MAI: 151 Laws Ave 73

SUBJECT PHOTOGRAPHS
Attachment 1

74 Keith Sablik, MAI: 151 Laws Ave

SUBJECT PHOTOGRAPHS

Front/North Elevation
Side/East Elevation
Rear/South Elevation
Attachment 1

Keith Sablik, MAI: 151 Laws Ave 75

SUBJECT PHOTOGRAPHS
Side/West Elevation
Laws Ave looking west
Laws Ave looking east
Attachment 1

76 Keith Sablik, MAI: 151 Laws Ave

SUBJECT PHOTOGRAPHS

Interiors
Attachment 1

Keith Sablik, MAI: 151 Laws Ave 77

SUBJECT PHOTOGRAPHS

Interiors
Attachment 1

78 Keith Sablik, MAI: 151 Laws Ave

SUBJECT PHOTOGRAPHS

Interiors
Attachment 1

Keith Sablik, MAI: 151 Laws Ave 79

APPRAISER QUALIFICATIONS
Attachment 1

80 Keith Sablik, MAI: 151 Laws Ave
Attachment 1

Guide to Exemptions from the Standard SLA Process 5
Exempt Surplus Land Determination Process
Land must be declared either “surplus land” or “exempt surplus land,” 1 as supported by written findings, before a local
agency may take any action to dispose of it consistent with statutory requirements, the SLA Guidelines, and a local agency's policies or procedures.
1 DISCLAIMER: Pursuant to Government Code section, subdivision 54221(f)(2), land that is located within a coastal zone, land that is adjacent to a historical unit of the State Parks System, land that is listed on or eligible for the National Register of Historic Places, or land that is within the Lake Tahoe region is not exempt surplus land and the local agency must send a notice of availability for open space purposes to the park and recreation department of the county and any cities in which the land is located, any regional park authority having jurisdiction within the area in which the land is located, and to the State Resources Agency (unless the land was granted by the state in trust to a local agency pursuant to Government Code section 54221, subdivision (f)(1)(H)).

Exemption Category 2
Land for affordable housing
Streamlines the process for
disposing of land for affordable
housing development
Must meet certain criteria in the
SLA
Exemption Category 3
Land dedicated for other public
uses
Land dedicated for other public
uses (parks, schools, etc.)
transferred to federal/state
government, land exchanged for
other land to be used by the local
agency, etc.

Exemption Category 4
Land not suitable for housing
Small parcels, former streets,
parcels with legal restrictions that
prohibit housing
Figure 1: Overview of the main categories of exemptions from the standard SLA process Exemption Category 1
"Grandfathering"
The pre-AB 1486 version of the
SLA applies if the local agency
took certain action to dispose of
property or issued a competitive
request for proposals to dispose of
the surplus land, and the
disposition is complete, before a
specific date.

Official Exemptions from Standard SLA Process
HCD requires local agencies to provide a copy of the written findings declaring the land “Exempt Surplus” to ensure the exemption applies and the local agency is not subject to the standard SLA Process. HCD’s review of the “Exempt Surplus” written findings can save substantial time and can help prevent unintended violations.

ATTACHMENT 2

Guide to Exemptions from the Standard SLA Process 9
Is the property
dedicated for
other public
uses?
Yes
Is the local agency transferring the surplus land to
another local, state, or federal agency for the
receiving agency's use, or to a federally recognized
California Indian tribe?
Yes
Eligible for exemption
(Gov. Code § 54221 subd. (f)(1)(D).)
Declare land "Exempt Surplus"
No Not eligible for Category 3a
exemption
Proceed to determine Category 3b
eligibility
(Page 10)
Is the local agency exchanging the surplus land for
another property necessary for the agency's use?
Yes
Eligible for exemption
(Gov. Code § 54221 subd. (f)(1)(C).)
Declare land "Exempt Surplus"
No Not eligible for Category 3b
exemption
Proceed to determine Category 3c
eligibility
(Page 10)
(i) Is the local agency a school district; and
(ii) Is the land subject to the provisions defined in
Sections 17388, 17515, 17536, 81192, 81397,
81399, 81420, or 81422 of the Education Code or
Part 14 (commencing with Section 53570) of
Division 31 of the Health and Safety Code that do
not expressly require compliance with the SLA?
Yes
Eligible for exemption
(Gov. Code § 54221 subd. (f)(1)(I).)
Declare land "Exempt Surplus"
No Not eligible for Category 3c
exemption
Proceed to determine Category 3d
eligibility
(Page 10)
(i) Is the local agency a district; and
(ii) Is the property necessary for the agency's use?
Yes
Eligible for exemption
(Gov. Code § 54221 subd. (f)(1)(J).)
Declare land "Exempt Surplus"
No Not eligible for Category 3d
exemption
Proceed to determine Category 3e
eligibility
(Page 10)
(i) Was the surplus land granted by the State in trust
to a local agency or acquired for trust purposes by
purchase or exchange; and
(ii) Was the disposition of land authorized subject to
conditions established by statute?
Yes
Eligible for exemption
(Gov. Code § 54221 subd. (f)(1)(H).)
Declare land "Exempt Surplus"
No Not eligible for Category 3e
exemption
Proceed to determine Category 4
eligibility
(Page 11)
No Not eligible for Category 3
exemption
Proceed to determine Category 4
eligibility
(Page 11)
Process of determining eligibility for Exemption Category 3:

Land dedicated for other public uses
Figure 5: Detailed decision tree to determine eligibility for Exemption Category 3: Land dedicated for other public uses 3 3a
3b
3c
3d
3e

Agenda Item No: 8.f.

MEETING DATE/TIME: 3/18/2026

ITEM NO: 2026-479

AGENDA SUMMARY REPORT
SUBJECT: Award Purchase of Toyota Model 9FBZ80U Electric Pneumatic Lift Truck to Atlas Toyota Material Handling in the Amount of $211,769.72, with $183,500 to be Reimbursed through the Volkswagen Environmental Mitigation Trust Fund, and Approve Corresponding Budget Amendment.

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

1. CC Reso 2026-07 - Authorizing Volkwagen Environmental Mitigation Fund Application

2. Quote - Toyota Electric Forklift
Summary: Award purchase of Toyota Model 9FBZ80U Electric Pneumatic Lift Truck to Atlas Toyota Material Handling in the amount of $211,769.72, with $183,500 to be reimbursed through the Volkswagen Environmental Mitigation Trust Fund, and approve corresponding budget amendment.

Background: On February 18, 2026, Council adopted Resolution 2026-07 (Attachment 1) authorizing the application for, and receipt of, funds from the Volkswagen Environmental Mitigation Trust Fund in response to the Statewide Zero-Emission Freight and Marine Program Solicitation. The Volkswagen Environmental Mitigation Trust provides approximately $423 million to California to reduce excess nitrogen oxide (NOx) emissions resulting from Volkswagen's use of illegal emissions defeat devices in certain diesel vehicles. Administered through the California Air Resources Board's Beneficiary Mitigation Plan, the program funds scrap and replace projects for heavy-duty equipment, including trucks, buses, forklifts and cargo handling equipment, with at least 50% of the funding directed toward benefiting low-income and disadvantaged communities.

Discussion: The Electric Utility is in need of a new large capacity forklift to support operations. The existing diesel forklift has exceeded its useful life and no longer meets operational, safety, or regulatory requirements.

Staff received a quote for a Toyota Model 9FBZ80U Electric Pneumatic Lift Truck (Attachment 2) for $211,769.72 that meets the requirements of the grant funding. The approved grant amount was $183,500, leaving a matching balance of $28,269.72. Staff is requesting Council award purchase of the Toyota Model 9FBZ80U Electric Pneumatic Lift Truck in the amount of $211,769.72, and approve a budget amendment to cover the remaining $28,269.72.

The forklift will be purchased from Atlas Toyota Material Handling through a Sourcewell cooperative purchasing contract. Utilizing the Sourcewell cooperative purchasing program satisfies the City’s competitive procurement requirements and allows the City to leverage nationally solicited pricing, streamlining the procurement process while ensuring compliance with applicable purchasing policies.

Recommended Action: Award purchase of Toyota Model 9FBZ80U Electric Pneumatic Lift Truck to Atlas Toyota Material Handling in the amount of $211,769.72, and approve corresponding budget amendment.

BUDGET AMENDMENT REQUIRED: Yes
CURRENT BUDGET AMOUNT: 80026110.54110: $0
PROPOSED BUDGET AMOUNT: 80026110.54110.E1721: $30,000

FINANCING SOURCE: 800 Fund
REVENUE: No GRANT: YES
PREVIOUS CONTRACT/PURCHASE ORDER NO.: N/A
COORDINATED WITH: Myles Fisette, Purchasing Manager; Jim Robbins, Housing and Grants Manager STRATEGIC PLAN (SP):SP 2B - Identify and/or develop funding for essential and vital infrastructure for the long-term.

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

Attachment 1

Atlas Toyota Material Handling (MN)
8601 Xylon Ct
Minneapolis, MN 55445-1840
Phone: 763-425-9066
https://www.atlastoyota.com/
- 1 -
Myles Fisette, Purchasing Manager
Procurement | Capital | Grants | Special Projects
411 West Clay Street, Ukiah, CA 95482
(707) 463-6225, [email protected]
We respectfully submit this quotation for the following NEW Toyota Integrated Electric Pneumatic Lift Truck (1 each):

Toyota...Proud to be the world's #1 forklift manufacturer! TOYOTA MODEL 9FBZ80U, Electric Pneumatic Lift Truck, quality engineered with the following specifications:
• Pneumatic Tires
SYSTEM OF ACTIVE STABILITY™ (SAS)
Toyota's industry exclusive System of Active Stability
(SAS) helps reduce lift truck instability by
electronically monitoring and controlling various
functions of the lift truck.
• Active Mast Function Controller (AMC):

Should the operator inadvertently place the lift
truck in a potentially unstable longitudinal
condition, these same sensors trigger the SAS
controller to activate the AMC, which limits
forward tilt and/or tilt back speed to help
reduce the likelihood of a longitudinal tip over.

AUTOMATIC FORK LEVELING
Toyota's Automatic Fork Leveling feature increases productivity while reducing damage with a push of a button. By depressing the Automatic Fork Leveling button during forward and reverse tilt, operators are quickly and easily able to level the forks.

To: Sourcewell Member Date: March 11, 2026
Quote No: 013066254R6
Photo may portray optional equipment not included in
your quotation.

Attachment 2

Sourcewell
March 11, 2026
Quote:
013066254R6
Opportunity: 0041387220
- 2 -

FULL FLOATING PLANETARY DRIVE AXLE
Your Toyota lift truck is outfitted with a rugged planetary drive axle. This planetary drive axle results in greater durability, reliability, which results in increased uptime.

WET DISC BRAKES
Force-cooled wet disc brakes are virtually maintenance free to help eliminate downtime and repair costs.

PREMIUM, 4-WAY ADJUSTABLE, FULL SUSPENSION SEAT WITH ORANGE NON-CINCHING SEAT BELT Operator comfort is taken to a new level with Toyota's Premium, 4-way adjustable, full suspension vinyl seat. With lumbar, weight, tilt, and almost 6 inches of fore/aft adjustability, your operators will be comfortable and productive throughout their shift. Standard orange non-cinching seat belt provides additional comfort in applications requiring frequent reverse travel.

LCD MULTI-FUNCTION DISPLAY
Features on the new MFD II include data log functions, fuel information, & operation data log all with QR code output and password protected administrator level access that can manipulate functions such as travel, vehicle management, and operation data log functions.

Mast 2-Stage (V) mast with limited free lift provides excellent visibility to load and fork tips, while providing smooth, quiet and consistent operation.

Mast Specifications:
• Maximum Fork Height - 121.0”
• Overall Lowered Height - 102.9”
• Over Head Guard Height - 92.00”
• Free Lift - 5.1" with standard Load Backrest
Lifting Capacity Base Model Capacity – 17,500 lbs @ 24” load center Actual Capacity, based on quoted specifications - 16,100 lbs @ 24” load center to 121.0” MFH
Actual capacity ratings stated above are based on standard features, options, and attachments available through Toyota at the time of quoting. Non-standard features, options, and attachments may affect actual capacity ratings. Please contact your Toyota sales representative for additional information.

Tilt 6 degrees forward and 12 degrees backwards
Carriage Wide Carriage Class IV - 67

Sourcewell
March 11, 2026
Quote:
013066254R6
Opportunity: 0041387220
- 3 -
Forks Forks 72" x 6" x 2.6" Pin Type
Load Backrest 54" High Load Backrest
Attachments Rightline 67" Integral Pin Type Sideshifting Fork Positioner (Includes 4 Way Valve with 3rd & 4th Function Hosing)
Speeds Travel Speed: 12.40 mph Lift Speed: 87 fpm
Steering Hydrostatic Power Steering
Wheels and Tires Front Tires: 8.25-15-16PR
Rear Tires: 8.25-15-16PR
Additional Equipment
Included
• Smart Alarm
• Rear View Mirrors (Left & Right Sides)
• LED Strobe Light (Blue) (Key On/Off)
• LED Rear Combination Lights
• Steering Wheel with Knob
• Mini-lever Controls
• Rear-Pillar Assist Grip
• Pencil & Tape Holder
• Fire Extinguisher
• SAS Decal
• ACT Charger: Q12-80-225, 240, 3-phase
• Charger accessories kit: floor stand, cable retractor, and cane pole • LI-Ion Battery: Integrated 90V 564AH Li-Ion
Other Outstanding
Toyota Features
• Operator Presence Sensing System (OPSS)
• Automatic Parking Brake
• Low Entry Step Height
• Dual Operator Assist Grips
• Dash Integrated Cup Holder
• Durable Rubber Floor Mat
• High Visibility Overhead Guard
• LED Headlights
• Key Off/Headlight Off System
Some standard items listed within this quotation may be replaced or altered due to optional equipment.

Sourcewell
March 11, 2026
Quote:
013066254R6
Opportunity: 0041387220
- 4 -
MyInsights
(Telematics)
Standard telematics provided on most Toyota forklifts deliver valuable insights and actionable data for your business. Increase uptime, optimize your fleet, and view detailed analytics by completing your free registration at my.toyotaforklift.com today! Standard Insights:

Hour Meters
Error Codes
Impact Detection
Location Tracking
Warranty 12 Months or 2,000 hours whichever occurs first: Basic 36 Months or 6,000 hours whichever occurs first: Powertrain Warranty coverage for non-standard option components will be covered by the manufacturer of that component and not covered under the Toyota forklift standard or powertrain warranty.

We offer a Toyota factory authorized warranty on all new Toyota Material Handling Equipment.

Sourcewell
March 11, 2026
Quote:
013066254R6
Opportunity: 0041387220
- 5 -
Investment
Charger
Accessories
Price-Toyota Model 9FBZ80U as specified above:

Current tax rate 8.875%
$194,504.45
17,265.27
Each
Net Price inclusive of delivery:
240, 3-phase power: the amp draw is 57.15.

Toyota has announced a price increase effective 4-1-2026.

Price above will increase $2976.55 for orders received on or after 4-1-2026.

A Toyota-approved power study or customer site demonstration is required before order submission. Final product configuration and pricing is pending Toyota approval. We must make sure this works in your application.
$211,769.72 Each
Terms and ConditionsPayment: Net 30 days / Cash or Financed Delivery: Will advise at time of order.
.

F.O.B.: Delivered
Prices are exclusive of any sales or use taxes now in force or which may be made effective in the future by any federal, state, or local governments.

Lease offerings subject to credit approval.
.

Cancellation:

Buyer may cancel its order, reduce quantities, revise specifications or extend schedules only by mutual agreement.

Reasonable and proper cancellation charges (minimum of 20% of purchase price per unit) will apply and which shall take into account expense already incurred and commitments made by Seller and shall indemnify Seller against any loss.

Performance and specifications stated are based on specific testing and operating conditions. Actual performance and specifications may vary based on application, option configuration, operating conditions, and environmental factors.

Some options and configurations may void UL.

Sourcewell
March 11, 2026
Quote:
013066254R6
Opportunity: 0041387220
- 6 -
.

Conditions subject to change to those in effect at time of delivery.

Your signature on this proposal constitutes an order.

Please contact your Toyota sales representative for additional information.

TELEMATICS AND DATA COLLECTION
The equipment in this proposal is enabled with the MyInsights system (“System”) which collects certain location and operational data concerning the equipment and transmits it to Toyota Material Handling, Inc. for processing and analytics.

This proposal is subject to the contractual terms and data usage policies for the System found at https://www.toyotaforklift.com/myinsights-legal (“System Terms”). Acceptance of this proposal, or otherwise using the equipment, constitutes acceptance of the System Terms and the formation of an agreement between Customer and Toyota Material Handling, Inc. based on the System Terms.

Customer may opt-out of data collection features for the System as provided in the System Terms. Failure to opt-out signifies Customer’s consent and agreement to the collection and usage of data in accordance with the System Terms.

Sincerely,
Atlas Toyota Material Handling (MN)
Accepted:

Sourcewell
Cash Price $
Financed Payment* $ Per Month Months
By: By:

Name: Greg Sanders Name:

Title: Title:

Date:

Public Comment on Non-Agenda Items - Handout Received - Eileen Mitro

Agenda Item No: 13.a.

MEETING DATE/TIME: 3/18/2026

ITEM NO: 2026-467

AGENDA SUMMARY REPORT
SUBJECT: Receive and Approve Submittal of the 2025 Annual Progress Reports to the Department of Housing and Community Development and the Governor's Office of Land Use and Climate Innovation.

DEPARTMENT: Community
Development PREPARED BY: Katherine Schaefers, Planning Manager PRESENTER: Katherine Schaefers, Planning Manager
ATTACHMENTS:

1. Housing Element APR

2. General Plan APR

3. Presentation Given
Summary: Council will receive the 2025 Annual Progress Reports from Staff and possibly approve submittal of the reports to the Department of Housing and Community Development and the Governor's Office of Land Use and Climate Innovation; and provide additional direction to Staff as necessary.

Background: Government Code requires the City's Community Development Department to provide an Annual Progress Report (APR) to the City Council, Governor's Office of Land Use and Climate Innovation (LCI), and the California Department of Housing and Community Development (HCD) regarding the City's progress in implementing its adopted housing element, as well as its general plan. Annual reports are due by April 1st of the proceeding calendar year for which the reports are prepared (CY 2025 report due 4/1/2026).

Discussion: Below is a summary of the City's 2025 progress in implementing the 2019-2027 Housing Element and 2040 General Plan. For details, please refer to the Housing Element APR in Attachment 1 and General Plan APR in Attachment 2.
2025 HOUSING ELEMENT (HCD) APR
For the 2019-2027 Housing Element/6th Planning Cycle, Ukiah was assigned a Regional Housing Needs Allocation (RHNA) of 239 residential units. The following table (Table 1) summarizes Ukiah’s progress in meeting its RHNA housing targets. This information is also provided in Table A of the Housing Element APR.

From 2019 to 2025, the City made progress towards its RHNA goals across all income-level categories through the permitting of Accessory Dwelling Units (ADUs), new single-family residential homes, and large multi-family housing projects. Notably, the 'Very Low-Income' target of 86 units was met by the end of 2023, primarily through the 72-unit Acorn Valley Plaza project at 197 & 199 East Gobbi Street. In 2024, Ukiah also met its 'Above Moderate-Income' allocation with the 32-unit housing project at 191 Cleveland Lane. In 2025, three ADUs were constructed, making the remaining Moderate-Income units needed as 11 units. This past year also saw the construction of two single-family 'Above Moderate Income' units.

Income levels are defined by HCD as follows:
• Extremely Low-Income - less than 30% Area Median Income (AMI). HCD requires that at least half of the units allocated for the Very Low-Income level be affordable to Extremely Low-Income households. • Very Low-Income - less than 60% AMI.

• Low-Income - between 60% AMI and 80% AMI.
• Moderate-Income - between 80% AMI and 120% AMI.
• Above Moderate-Income - greater than 120% AMI.

Table 1 – RHNA Allocation and Progress
Income Level 2019-2027 RHNA
Original Allocation
Issued Units
in 2025
RHNA Remaining
Very Low-Income 86 0 0
Low-Income 72 0 15
Moderate-Income 49 3 11
Above ModerateIncome 32 2 0
Total 239 5 26
In 2025, the City issued five (5) building permits for new residential units (Table 2), and with past and projected housing production, Ukiah is on track to meet its RHNA goals by 2027. The remaining RHNA targets for 'Low Income' and 'Moderate Income' households, 15 units and 11 units, respectively, are expected to be met with an upcoming housing project on Cooper Lane, as well as the continued development of ADUs and infill housing over the next two years. Full details and a year-by-year breakdown of Ukiah's RHNA progress may be found in Table B of the Housing Element Annual Progress Report.

Table 2 – 2025 Building Permits by Income
Income Level Number of Units
Moderate-Income 3
Garage conversion into ADU 1
Detached ADUs 2
Above Moderate-Income 2
Single-family residence 2
The City of Ukiah's Housing Element APR includes multiple tables that document housing production, program implementation, and land use decisions. Below is a description of what each of these tables provides:
• Tables A, A2, and B: Provide information on housing production and progress toward the RHNA allocation.
• Table C: Not applicable, as the City is on track to meet regional housing targets without needing to rezone sites.
• Table D: Summarizes program implementation in the Housing Element. • Tables E and F: Not applicable, as the City did not utilize commercial development bonuses or acquire units for alternative sites.
• Table F2: Not applicable, as there were no conversions of above-moderate income units to lower affordability levels.
• Table G: Shows the two locally owned sites sold by the City for housing development. • Table H: Not applicable, as the City did not formally declare surplus land. • Table I: HCD removed this table from the 2025 APR, and consolidated its data into Tables A and A2. • Table J: Not applicable, as the City did not use a density bonus for student housing.

• Table K: Not applicable, as the City has no local tenant preference ordinance. • Table L: Not applicable, as the City did not add any sites to a National, State, or Local register of historic places in 2025.
• LEAP Reporting: Status: Complete. Local Early Action Planning (LEAP) funds are grants provided to cities to improve processes and plans aimed at accelerating housing production. In 2024, the City successfully utilized LEAP funds by updating lot adjustment policies, implementing the new LEAPfunded electronic permit system (CitizenServe), and other projects, with final invoices submitted to HCD for reimbursement by the 2024 deadline.

Since the adoption of the 6th Cycle Housing Element in October 2019, Staff have prioritized implementation of programs contained in Section 7 of the Housing Element to advance its goals and policies. As noted in last year's APR, all Housing Element Implementation Programs have been completed. This status is reported in Table D of the Housing Element APR. Certain completed programs will continue as ongoing as Staff secures additional funding.
2025 GENERAL PLAN (LCI) APR
The Ukiah 2040 General Plan provides a long-term framework for the City’s growth, and is organized into eight elements: Land Use, Economic Development, Mobility, Public Facilities, Services and Infrastructure, Environment and Sustainability, Safety, Agriculture, and Housing. Each element includes specific implementation programs, with goals set for completion in the 2022-2025, 2026-2030, and 2031-2040 timeframes. Some programs are also designated as ongoing or annual tasks. A list of all General Plan Implementation Programs completed or initiated in 2025 is below. Please see Attachment 2 for the full 2025 General Plan Annual Progress Report (APR) details on each of the Implementation Programs.

Land Use Element
Implementation Program E: Zoning Code Amendments (Open Space, Signs, Downtown Zoning Code, Map Corrections)
Economic Development Element
Implementation Program A: Work continued on the Economic Development Strategy based on stakeholder interviews.

Mobility Element
Implementation Program L: Airport Infill Policy Ad Hoc appointed to assist on parcel identification study in November.

Public Facilities, Services, and Infrastructure Element Implementation Program A: Sewer System Management Plan Update completed in September.

Implementation Program B: Parks Gap Analysis completed in March.

Environment & Sustainability Element
Implementation Program E: Urban Forest Management Plan initiated through award of Urban Forest Program grant.

Implementation Program M: Climate Action Plan adopted in May.

Safety Element
Implementation Programs E and P: Adoption of FEMA flood Insurance Rate Maps and Fire Hazard Severity Zones.

Implementation Programs T and U: Fuel Break Assessment and Cooperative Pest Management initiated initiated through new Fire/Fuels Crew Program.

Agriculture Element

Implementation Program C: Align agricultural regulations with Mendocino County.

Implementation Programs E and I: Administrative Use Permit (AUP) process established through ordinance that streamlined regulations for community gardens, apiaries, and outdoor sales.

Staff recommends Council receive and approve submittal of the 2025 Annual Progress Reports to HCD and LCI and provide additional direction to Staff as necessary.

Recommended Action: Receive and approve submittal of the 2025 Annual Progress Reports to the Department of Housing and Community Development and the Governor's Office of Land Use and Climate Innovation, and provide direction to Staff as necessary.

BUDGET AMENDMENT REQUIRED: N/A
CURRENT BUDGET AMOUNT: N/A
PROPOSED BUDGET AMOUNT: N/A
FINANCING SOURCE: N/A
REVENUE: Yes / No GRANT: Yes / No N/A
PREVIOUS CONTRACT/PURCHASE ORDER NO.: N/A
COORDINATED WITH: Jim Robbins, Grants Division & Housing Division Manager; Jesse Davis, AICP/Chief Planning Manager; Craig Schlatter, AICP/Community Development Director STRATEGIC PLAN (SP): SP 3A - Review and revise land use planning documents to be reflective of the long-term vision for the community.

GENERAL PLAN ELEMENTS (GP): GP-A1 - Land Use Element; GP-A2 - Economic Development Element; GP-A3 - Mobility Element; GP-A4 - Public Facilities, Services, and Infrastructure Element; GP-A5 - Environment and Sustainability Element; GP-A6 - Safety Element; GP-A7 - Agriculture Element; GP-A8 - Housing Element (2019-2027)

ATTACHMENT 1

Table A – Housing Development Applications Submitted
Table A2 – Annual Building Activity Report Summary – New Construction, Entitled, Permits and Completed Units

Table B – Regional Housing Needs Allocation Progress

Jurisdiction Ukiah
Reporting Year 2025 (Jan. 1 - Dec. 31)
1 2 345 6 7 8 9
Name of Program Objective
Projected Completion
Date in Housing
Element
Applicable Cycle Status of Program Implementation Program Implementation Details Quantified Outcomes: Category Quantified Outcomes: Count Supporting Documents H-1 - 1a: Implement a residential rehabilitation program.

Encourage the rehabilitation of existing residential unit 12/31/2025 6th Cycle Continuous The City of Ukiah applied for
competitive funding through the "non-entitlement" allocation of the State Community Development Block Grant (CDBG) program to launch a Housing Rehabilitation program and was awarded a $500,000 grant by HCD in 2022. Applications for housing rehabilitation assistance were received from low-income homeowners in 2025 and are being processed for possible approval. The program seeks to correct health and safety hazards in deteriorated housing; and to extend the useful life of existing housing units. Loans and grants are available for owner-occupied homes or for units occupied by low-income tenants of owner-investors jurisdiction wide.The Emergency Repair Grant Program provides a grant of up to $7,500 for emergency home repairs to correct housing conditions posing an imminent threat to the health and safety of the owner occupant. Funds for this rehabilitation program
Other 1 https://ukiahca.portal.civicclerk.com/event/22 54/overview

ANNUAL ELEMENT PROGRESS REPORT
Housing Element Implementation
Housing Programs Progress Report
Describe progress of all programs including local efforts to remove governmental constraints to the maintenance, improvement, and development of housing as identified in the housing element.

Table D
Program Implementation Status pursuant to GC Section 65583 Table D – Housing Element Implementation

H-1 - 1b: Continue the
City’s Energy Efficiency Public Benefits Fund and renewable energy and energy efficiency rebate programs.

Provide education and opportunities toincrease green building practices. 12/31/2025 6th Cycle Continuous In 2024, similar to previous years, the City of Ukiah’s Electrical Utility Department offered a myriad of funding opportunities that encouraged the use of renewable energy and energy efficent products. Rebates and refunds remain available for appliances, products, home improvement (insulation, windows, solar attic fan, air sealing, duct sealing, air conditioner, heat pump, smart thermostat, etc.), and vehicles (including e-bikes).

Other 1 https://www.directefficiency.com/ukiah- electric-rebates/#ukiah-home-improvements H-1 - 1c: Support funding or other applications that would preserve/conserve existing mobile home parks.

Preserve at-risk housing units. 12/31/2025 6th Cycle Continuous A rent stabilization ordinance was adopted by the City Council in 2011. Staff has investigated the Mobile-home Park Rehabilitation and Residential Ownership Program (MPRROP) via HCD that would finance the preservation of affordable mobile-home parks by conversion to ownership or control by resident organizations, nonprofit housing sponsors, or local public entities, but no action has yet been taken. In 2025, the City of Ukiah Housing Rehabilitation Program, made available funds for repair and replacement to mobile home residents within City limits to encourage preservation of existing parks.

Other 1
https://cityofukiah.com/community‐develop
H-1 - 1d: Continue providing informational materials to the public through the Green Building Information Center and at the public counter.

Provide education and opportunities to increase green building practices. 12/31/2025 6th Cycle Continuous In 2025, staff updated and maintained the Green Building Resource Center in the Ukiah Civic Center. The Community Development Department also maintains resources on its website, including helpful links to enable the public to learn more about health and energy, water, and material conserving design and construction. Additionally, the City's Electric Utility Department provides information on these types of practices and programs.

Other 1 https://cityofukiah.com/community- development/building-services/

H-1 - 1e: Develop
standards and design guidelines for residential development in the Medium Density Residential (R-2) and High Density Residential (R-3), Community Commercial (C-1) and Heavy Commercial (C-2) zoning districts.

Streamline housing development. 9/1/2021 6th Cycle Completed Objective Design and Development Standards adopted by the City Council (Ordinance No. 1216) on 9/1/2021. In 2023 and 2024, the City further refined these regulations per Ordinance No. 1234, Adopted 10/18/23; Ordinance No. 1244, Adopted 09/04/24; Ordinance No. 1249, Adopted 10/16/24. In 2025, the City utilized these standards in the ministerial processing of building permit submittals.

Other 1 https://www.codepublishing.com/CA/Ukiah/#! /Ukiah09/Ukiah0902-0502.html#art5 H-1 - 1f: Develop an AtRisk Units Program Preserve at-risk housing units. 12/31/2020 6th Cycle Completed In 2020, Staff developed an AtRisk Program for the City of Ukiah, including informational hand-outs. Through the Planning Division webpage, these materials are available for review. The nature of conversion risk varies significantly among projects depending on the type of subsidy and related affordability controls. As all identified units are guaranteed to remain affordable for the remainder of this RHNA cycle, the City will continue to monitor their status. Should changes to status arise, however, Staff will implement efforts to preserve at risk units.

Other 1
https://cityofukiah.com/wpcontent/uploads/2024/02/At-risk-UnitsProgram-Flier.pdf H-1 - 1g: Tenant Education and Assistance for Tenants of At-Risk Projects.

Require property owners to give notice to tenants of their intent to opt out of lowincome use restrictions. Provide tenants of at-risk units with education regarding tenant rights and conversion procedures. 12/31/2025 6th Cycle Continuous
Informational handouts were developed by City Staff to educate tenants of their rights and conversion procedures. However, no at risk projects have been identified by the City of Ukiah that would require action at this time.

Other 1 https://cityofukiah.com/community- development/housing-services/ H-2 - 2a: Update the inventory of vacant and underutilized parcels.

Ensure that adequate residentially designated land is available to accommodate the City’s share of the Regional Housing Need. 12/31/2025 6th Cycle Continuous
This list is updated annually and is posted to the City of Ukiah's Planning Division web-page.

Other 1 https://cityofukiah.com/community- development/planning-services/

H-2 - 2b: Monitor the rate
of conversion of primary residences to short-term rental units.

Ensure that adequate residentially designated land is available to accommodate the City’s share of the Regional Housing Need and not converted to commercial uses. 12/31/2025 6th Cycle Continuous
Monitoring of short-term rentals is facilitated through the Plan Check/business license process. All Short-Term Rentals require a business license to operate within the City of Ukiah. If deemed necessary, Staff will review software programs to further assist with short term rental enforcement, but notes that a significant portion of operators do not facilitate wholehome rentals and that the number of short-term rentals does not appear significant based on active business license.

Other 1 https://www4.citizenserve.com/Portal/PortalC ontroller H-2 - 2c: Monitor the conversion of single family residential homes to commercial uses Ensure that adequate residentially designated land is available to accommodate the City’s share of the Regional Housing Need and not converted to commercial uses. 12/31/2025 6th Cycle Continuous
Presently, conversion of residential structures is monitored via the Plan-Check Process. In 2024, there were no conversions of residential homes to commercial uses. In 2025, there were no conversions of residential homes to commercial uses.

Other 1 https://www4.citizenserve.com/Portal/PortalC ontroller H-2 - 2d: Pursue additional funding sources to augment the Ukiah Housing Trust Fund, creating a permanent source of funding for affordable housing.

Encourage the development of a variety of different types of housing. Facilitate the production of housing for all segments of the Ukiah population 12/31/2025 6th Cycle Continuous
The City of Ukiah was awarded a ProHousing Designation by HCD in 2023. As a result of this designation, the City was eligible and applied for/was awarded $455,000 in Prohousing Incentive Pilot (PIP) funds and $517,061 in PHLA funds to facilitate Affordable Housing production and/or rehabilitation in the City.

Other 1
https://cityofukiah.com/wpcontent/uploads/2023/05/PR_ProhousingDesgination.pdf H-2 - 2e: Continually engage with a variety of housing developers who specialize in providing housing to each economic segment of the community.

Facilitate the production of housing for all segments of the Ukiah population 12/31/2025 6th Cycle Continuous City Staff continue to actively participate in the Inland Mendocino County Housing Action Team, which includes developers of residential homes. In 2025, Staff regularly communicated with project developers from Mendocino County and Northern California to engender interest in locating projects within the City.

Other 1 https://cityofukiah.com/community- development/housing-services/ H-2 - 2f: Amend the zoning
code: Emergency Shelters, Transitional/Supportive Housing, Single Room Occupancy Housing and Manufactured/Factory Built Homes
Facilitate the production of housing for all segments of the Ukiah population 9/1/2021 6th Cycle Completed Zoning Ordinance amendments adopted by the City Council (Ordinance 1216) on 9/1/2021.

Other 1 https://cityofukiah.com/housing-related- zoning-code-updates/

H-2 - 2g: Facilitate the
consolidation of smaller, multi-family parcels by providing technical assistance to property owners and developers in support of lot consolidation.

Facilitate the production of housing for all segments of the Ukiah population. Preserve at-risk housing units. 12/31/2025 6th Cycle Continuous
In FY 2024, the City Council adopted an ordinance designed to improve the lot line adjustment process by streamlining review requirements and reducing unnecessary application requirements. In 2025, applicants utilized this streamlined approach for lot adjustments.

Other 1 https://ukiahca.portal.civicclerk.com/event/18 85/overview H-2 - 2h: Ensure capacity of adequate sites for meeting RHNA: (1) Update C1 and C2 Zones to allow by-right housing development, with objective design and development standards (2) Update the R-2 Zone to allow up to 15 dwelling units per acre instead of 14 dwelling units per acre (3) Update the C-N Zone to increase residential density and allow similar housing types as those allowed in R-2. (4) Byright housing program for select parcels.

Facilitate the production of housing for all segments of the Ukiah population 9/1/2021 6th Cycle Completed Zoning Ordinance amendments including by-right housing development with objective design and development standards, increasing residential density in the C-N zone, and by-right housing for select parcels, adopted by the City Council (Ordinance 1216) on 9/1/2021. The Council adopted a Resolution to amend the General Plan to match the increase in density in the C-N Zone on 8/18/2021.

Other 1 https://www.codepublishing.com/CA/Ukiah/#! /Ukiah09/Ukiah0902-0502.html#art5 H-2 - 2i: Monitor residential capacity (no net loss). Proactively monitor the consumption of residential acreage to ensure an adequate inventory is maintained for the City’s RHNA obligations.

Preserve at-risk housing units. 12/31/2025 6th Cycle Continuous No residential net loss was identified for the year 2025. The City has updated its vacant and underutilized inventory to ensure that there is adequate acreage to maintain the City’s RHNA obligations.

Other 1
https://cityofukiah.com/wpcontent/uploads/2025/01/Vacant-andUnderutilized-Parcel-List_2025.pdf H-2 - 2j: First Time Homebuyer Assistance
Expand affordable housing opportunities for first time homebuyers. 12/31/2025 6th Cycle Continuous The City of Ukiah’s first time homebuyer program is designed to provide assistance to eligible homebuyers in purchasing homes located within City limits. In 2021, first time homebuyer assistance was provided to two (2) households through a HOME award. In 2025, the City activiated a new CDBG FTHB Program, and made the first (1) loan for the purchase of a house in November 2025.

Other 1 https://cityofukiah.com/community- development/housing-services/

H-2 - 2k: Collaborate with
local service providers on addressing homelessness. Continue participation in the Mendocino County Continuum of Care.

Facilitate the production of housing for all segments of the Ukiah population, including those with special needs. 12/31/2025 6th Cycle Continuous
The City continues to participate in the Mendocino County's Continuum of Care via multiple Departments, including the Ukiah Police Department and the City Manager's Office. Additionally, the City's Community Development Department meets bi-annually with leadership of the Ukiah Police Department, Ukiah Valley Fire Authority, and Building Bridges Homeless Services Center.

Other 1 https://mendocinococ.org/
H2-2l: Review existing City processes for compliance with AB 2162.

Revise zoning codes/processes to allow supportive housing by right in zones where multifamily and mixed uses are permitted, including nonresidential zones permitting multifamily uses. 8/5/2020 6th Cycle Completed
Transitional housing, and supportive housing is allowed by-right in zones where multifamily and mixed uses are permitted. Ord. 1205 was adopted on August 5, 2020 addressing this goal and ensuring compliance with AB 2162.

Other 1
http://coulaserfiche02/WebLink/DocView.aspx?id=73959&dbid=0&repo=Ukiah H-2 - 2m: Housing Units Replacement Program
Ensure that adequate residentially designated land is available to accommodate the City’s share of the Regional Housing Need. In order to mitigate the loss of affordable housing units, require new housing developments to replace all affordable housing units lost due to new development. 12/31/2025 6th Cycle Continuous
Displacement not identified in 2025, as all development was supplemental or occurred on vacant parcels.

Other 1 https://www4.citizenserve.com/Portal/PortalC ontroller H-2- 2n: Homeless Shelter
Overlay District Evaluation. Evaluate the Homeless Shelter Overlay District to determine suitability for accommodating the identified number of homeless persons.

Facilitate the production of housing for all segments of the Ukiah population, including those with special needs. 12/31/2019 6th Cycle Completed
Staff previously presented analysis to the Planning Commission, and determined that the current approach to homeless shelter facilities was adequate to meet the needs of unhoused individuals.

Other 1
https://cityofukiah.com/wp-content/uploads/202

H-3 - 3a: Research, review
and amend the development standards in the zoning code for opportunities to maximize housing development.

Increasing maximum allowable height for new residential buildings; Increasing density; Reducing yard setbacks; Reducing minimum site area; Upzoning R1 (Single-family Residential) and R-1-H (Single-family Residential- Hillside Combining) zoning districts to allow byright and/or permit other residential building types and densities. 9/1/2021 6th Cycle Completed
Zoning Ordinance amendments
including by-right housing development with objective design and development standards, increasing residential density in the C-N zone, and by-right housing for select parcels, adopted by the City Council (Ordinance 1216) on 9/1/2021. The Council adopted a Resolution to amend the General Plan to match the increase in density in the C-N Zone on 8/18/2021. In 2024, the City adopted the "Missing Middle" Ordinance No. 1249, on 10/16/24, modifying the R-1, R2 and R-3 zones to incorporate changes consistent with Ukiah 2040 General Plan’s densityrelated analysis and housing goals, such as reduced setback, parking and lot-size requirements; allowing a greater variety of housing types, such as ‘Dwelling Groups’ In addition, the City adopted an "ADU" Ordinance No. 1244, on 09/4/24 to update the City’s approval process for Accessory Dwelling Units (ADUs) and Junior Accessory Dwelling Units
Other 1
https://cityofukiah.com/2025‐update‐city‐of‐
H-3 - 3b: Develop flexible parking policies for new residential development. The intent of this policy is to reduce parking requirements, especially in zoning districts that allow for lower-income housing developments.

Remove governmental constraints to infill housing development. 9/1/2021 6th Cycle Completed Zoning Ordinance amendments including flexible parking policies were adopted by the City Council (Ordinance 1216) on 9/1/2021. In 2023, the City further amended parking regulations in for projects using Objective Design & Development Standards by reducing multi-family requirements per Ordinance No. 1234; Adopted - 10/18/23 Other 1
https://cityofukiah.com/wpcontent/uploads/2024/01/Objective-DesignDevelopment-Checklist-10.15.23.pdf H-3 - 3c: Explore other policies and regulations that facilitate new infill housing development. Produce report with recommendations and present to Planning Commission and City Council.

Encourage the use of density bonuses and provide other regulatory concessions to facilitate housing development. 12/31/2025 6th Cycle Continuous
Staff continues to research policies and regulations that facilitate new infill housing development. Staff encourages the use of density bonuses and provides other regulatory concessions to facilitate housing development, when appropriate.

Other 1
https://cityofukiah.com/wpcontent/uploads/2024/01/Objective-DesignDevelopment-Checklist-10.15.23.pdf

H-3 - 3d: Facilitate
improvements to permit processing to streamline housing development.

Remove governmental constraints to infill housing development. 12/31/2025 6th Cycle Continuous Staff created a Housing Development Checklist (processing procedures brochure) for by-right housing development of duplexes, triplexes, 4-plexes and larger projects in 12/2021. These are currently available on the City website and via email upon request. It was also sent to known housing developers currently working with the City. In 2022, Danco Communities utilized these objective standards to facilitate development of Acorn Valley Plaza at 210 East Gobbi Street. Per Ordinance No. 1234 (Adopted - 10/18/23), Staff further removed governmental constraints to infill housing.

Other 1
https://cityofukiah.com/wpcontent/uploads/2024/01/Objective-DesignDevelopment-Checklist-10.15.23.pdf H-3 - 3e: Continue to apply the CEQA infill exemption to streamline environmental review.

Improve building and planning permit processing for residential construction. 12/31/2025 6th Cycle Continuous Staff regularly applies and utilizes the CEQA infill exemption to streamline environmental review when appropriate.

Other 1 https://www.califaep.org/docs/CEQA_Handb ook_2025combined.pdf H-3 - 3f: Review Site Development Permit and Use Permit Processes. Produce report for City Council analyzing processes and making recommendations for how to revise processes and/or Ukiah City Code such that project approval process is accelerated.

Remove governmental constraints to infill housing development. Improve building and planning permit processing for residential construction. 12/31/2025 6th Cycle Continuous
Zoning Ordinance amendments, including by-right housing with objective design and development standards were adopted by the City Council on 9/1/2021 (Ordinance 1216) . These objective standards streamline both the Site Development Permit and Use Permit processes. In 2024, The Pinoleville Pomo Nation utilized these objective standards to facilitate A 32-Unit, multi-family housing development at 191 Cleveland Lane. Staff continually reviews and updates policy.

Other 1
https://cityofukiah.com/wpcontent/uploads/2024/01/Objective-DesignDevelopment-Checklist-10.15.23.pdf H4- 4a: Continue to collaborate with the Ukiah Police Department and property owners and managers to keep housing safe. Support the Crime Prevention through Environmental Design standards through continued referral of residential new construction projects to the Ukiah Police Department.

Continue to implement effective crime prevention activities. 12/31/2025 6th Cycle Continuous The Community Development Department continues to collaborate with the Ukiah Police Department (UPD), as the UPD reviews all housing project applications as part of the Department's referral process and regularly makes comments. Comments from UPD are derived from the UPD's Crime Prevention Through Environmental Design strategy.

Other 1
https://cityofukiah.com/upd/divisions/crimeprevention-flyers/crime-prevention-byenvironmental-design/index.htm

H4- 4b: Continue to refer
housing discrimination complaints to Legal Services of Northern California, State Fair Employment and Housing Commission, and the U.S. Department of Housing and Urban Development (HUD).

Promote fair housing practices in the sale or rental of housing with regard to race, color, national origin, ancestry, religion, disability/ medical conditions, sex, age, marital status, familial status, source of income, sexual orientation/gender identify, or any other arbitrary factors. 12/31/2025 6th Cycle Continuous
No complaints received in 2025, but the City remains cognizant of this objective.

Other 1 https://cityofukiah.com/diversity-and-equity/
H4- 4c: Develop project referral procedural for referral of all proposed General Plan amendments to the appropriate military office for review and comment. Revise the planning permit application form to include this step of referral.

Promote well-planned and designed housing opportunities and projects for all persons. 10/18/2022 6th Cycle Completed
In determining the impact of new growth on military readiness activities, information provided by military facilities shall be considered. The City shall address military impacts based on information from the military and other sources. All amendments to the Ukiah General Plan, and large development projects shall be sent to military referral entities. A request for review is sent to these contacts prior to determination of project’s completeness, so that any requests for additional information or conditions may be integrated into the project in a timely manner. In 2022, the City utilized this referral procedure to provide notice to appropriate military offices on October 18, 2022 for the City's 2040 General Plan.

Other 1 https://ceqanet.lci.ca.gov/2022050556/2

H5-5a: Maintain a housing
resources webpage.

Assume a leadership role in the development of all types of housing in the community. 12/31/2025 6th Cycle Continuous
The Housing Services Division is responsible for administering the City’s federal, state, and local housing, and community development programs to improve and expand the City’s housing stock, especially for low- and moderate-income residents, seniors, and those with special needs. In 2022, the City created a Housing Services webpage. In 2025, the City featured a First Time Homebuyer Program, a Housing Rehabilitation Program, Ukiah Housing Trust Fund, and the Community Development Block Grant (CDBG) Program, and the HOME Investment Partnerships Program on the webpage, along with other housing resources available to residents and developers in Mendocino County and Ukiah.

Other 1 https://cityofukiah.com/community- development/housing-services/ H5-5b: Complete the update of the 2020 Sphere of Influence, Municipal Service Review, and Ukiah 2040 General Plan. Include an annexation policy.

Pursue annexation efforts that lead to an orderly expansion of growth, where services are adequate for future residential development. 12/31/2025 6th Cycle Continuous
On December 9, 2022, Mendocino County LAFCo adopted the City's Municipal Service Review and Sphere of Influence Update. On September 11, 2023, at their regular Commission Meeting, the City of Ukiah’s request to annex City-Owned parcels in unincorporated Mendocino County (A-2021-01) was approved.

Other 1 https://www.mendolafco.org/sphere-of- influence-updates H5-5c: Work collaboratively with stakeholder jurisdictions for opportunities to lessen or remove development constraints and update the housing plan accordingly.

Remove governmental constraints to infill housing development. Improve building and planning permit processing for residential construction. 12/31/2025 6th Cycle Continuous
In 2024, Staff worked collaboratively with the County, as well as other jurisdictions, on opportunities to lessen or remove development constraints. In particular, Staff focused on progressing a master tax share agreement to streamline future annexation efforts.

Other 1
https://cityofukiah.com/wp‐content/uploads

300 Seminary Avenue • Ukiah • CA • 95482-5400
Phone: (707) 463-6200 · Fax: (707) 463 6204
www.cityofukiah.com
GOVERNOR’S OFFICE OF LAND USE AND CLIMATE INNOVATION (LCI) 2025 CITY OF UKIAH

GENERAL PLAN ANNUAL PROGRESS REPORT (APR) MEMORANDUM
Purpose of the APR: The Governor’s Office of Land Use and Climate Innovation (LCI) Annual Progress Report (APR) provides local legislative bodies and the public with information on the implementation of the General Plan for their city or county. These APRs also serve to update the public on progress toward achieving the City’s identified goals.

City Council Review Date: March 18, 2025
2040 General Plan Adoption Date: On December 7, 2022, the City Council adopted a resolution approving the 2040 General Plan (Resolution No. 2022-79), along with a resolution certifying the Environmental Impact Report (EIR), adopting the Findings of Fact and Statement of Overriding Considerations, and approving the Mitigation Monitoring Reporting Program (Resolution No. 2022-78; State Clearinghouse No. 2022050556). In addition, the City’s 6th Cycle Housing element was adopted by the Ukiah City Council on October 23, 2019, and subsequently certified by the California Department of Housing and Community Development on December 5, 2019.

EXECUTIVE SUMMARY
The Ukiah 2040 General Plan serves as the City’s long-term blueprint for sustainable growth, balancing economic prosperity, environmental stewardship, housing affordability, and mobility improvements. The 2025 APR reflects Ukiah’s commitment to implementing this vision. This report outlines the progress made in each General Plan element, highlighting implementation milestones, policy updates, and public engagement efforts that align with the General Plan’s objectives. This report covers the reporting period of January 1, 2025, through December 31, 2025. Following review and acceptance by the City Council, this report will be submitted via the required online forms to LCI and HCD.

GENERAL PLAN IMPLEMENTATION PROGRESS (2025)
The City of Ukiah 2040 General Plan was certified in December 2022. In 2025, the City made significant strides in implementing the specific programs outlined in the Plan's elements.

A. Land Use Element
Open Space (O-S) Zoning District (Implementation Program E): The City successfully created an Open Space (O-S) zoning designation to preserve areas of significant natural value. This action implements Policy LU-6.3 (Open Space Access) by encouraging public access to greenways and hillsides, and Goal ENV-1 by preserving natural resources and scenic landscapes. The City Council adopted Ordinance 1262 on November 5, 2025.

Sign Ordinance Update (Implementation Program E): A comprehensive update to the sign ordinance was completed to streamline the application process and implement design standards consistent with Policy LU-11.7 (Sign Regulations) and Goal LU-11. The City Council adopted the updated ordinance (Ordinance 1255) on June 4, 2025.

ATTACHMENT 2

300 Seminary Avenue • Ukiah • CA • 95482-5400
Phone: (707) 463-6200 · Fax: (707) 463 6204
www.cityofukiah.com
Downtown Zoning Code and Design Guidelines (Implementation Program E): Work continued on refining the Downtown Zoning Code to balance revitalization with preservation, implementing Policy LU-10.1 (Downtown Zoning Code). The City Council Ad Hoc Committee met in August and October 2025, and a Planning Commission workshop was scheduled for December 10, 2025.

General Plan Map Corrections (Implementation Program E): On April 2, 2025, the City Council adopted updates and corrections to the 2040 General Plan Land Use and Planning Area Maps to ensure consistency with the intent of the adopted General Plan, implementing Policy LU-16.1 (Land Use Map) and Policy LU-16.3 (Zoning Designations).

B. Economic Development Element
Economic Development Strategy (Implementation Program A): Work on the Economic Development Strategy continued in 2025, utilizing data from stakeholder interviews conducted in late 2024. However, the final strategy has been deferred until the City’s reorganization application is further progressed.

C. Mobility Element
Airport Infill Policy (Implementation Program L): Work commenced on a study to identify parcels for new development compatible with the airport, implementing Policy LU-2.1 (Airport Compatibility). On November 19, 2025, the City Council appointed a new Airport Infill Policy Ad Hoc committee to assist with these efforts.

D. Public Facilities, Services, and Infrastructure Element Sewer System Management Plan (Implementation Program A): The City Council approved the 2025 Sewer System Management Plan (SSMP) Update in September 2025, ensuring the continued viability of the wastewater collection system consistent with Policy LU-4.2 (Infrastructure Availability).

Parks Gap Analysis (Implementation Program B): The City completed a Parks Gap Analysis to identify areas underserved by parks and recreational facilities. The City Council accepted the analysis as complete on March 19, 2025, in alignment with Policies PFS-12.1 (Connected Park Systems) and 12.3 (Equitable Access to Parks and Recreation Facilities).

E. Environment & Sustainability Element
Climate Action Plan (CAP) (Implementation Program M): A major milestone was achieved with the adoption of the Municipal Climate Action Plan (CAP) on May 21, 2025. The CAP outlines strategies to reduce greenhouse gas emissions and achieve carbon neutrality by 2045, fulfilling General Plan Implementation M.

Urban Forest Master Plan (Implementation Program E): The City advanced its urban forestry goals by approving a contract with the California Conservation Corps on October 15, 2025, to provide landscaping and tree planting assistance on Phase 4 of the Great Redwood Trail. This implements Measure CS-1 and the urban forestry goals of the General Plan.

F. Safety Element
Floodplain Development (Implementation Program E): The City adopted Ordinance 1259 on September 17, 2025, as an urgency ordinance updating floodplain management regulations and adopting FEMA Flood Insurance Rate Maps (FIRM) to ensure continued eligibility in the National Flood Insurance Program.

300 Seminary Avenue • Ukiah • CA • 95482-5400
Phone: (707) 463-6200 · Fax: (707) 463 6204
www.cityofukiah.com
Fire Hazard Zone Update (Implementation Program P): On July 18, 2025, Ordinance 1256 became effective, adopting the 2025 California Fire Code and designating Fire Hazard Severity Zones within the City to ensure development standards reflect current risk levels.

Fuel Break Assessment and Cooperative Pest Management (Implementation Programs T & U): In April 2025, the City and Ukiah Valley Fire Authority established a Fire/Fuels Crew Program, hiring an Interim Superintendent to lead vegetation management and hazardous fuels reduction efforts, particularly in the western hills.

G. Agriculture Element
Agricultural Standards Alignment (Implementation Program C): The City adopted an ordinance amendment to align City agricultural regulations with Mendocino County standards. The City Council adopted Ordinance 1253 on March 5, 2025.

Reduce Regulation for Local Agriculture (Implementation Programs E & I): The City introduced the Administrative Use Permit (AUP) process to streamline the review for low-impact uses such as community gardens, apiaries, and outdoor sales. This was part of Ordinance 1257, adopted in October 2025, which implements Program E (Small-scale agriculture) and Program I (Community Gardens).

H. Housing Element
Housing Production (RHNA): As of the start of the 2025 reporting period, the City had a remaining Regional Housing Needs Allocation (RHNA) of 29 units (15 low-income and 14 moderate-income). As of December 31, 2025, 26 units remain (15 low-income and 11 moderate-income). Based on currently approved and anticipated projects, including accessory dwelling units (ADUs), the City is on track to meet these targets by 2027.

ADU Ordinance Update: To ensure compliance with State ADU Law (Gov. Code § 66310 - 66342) and respond to HCD findings, the City adopted Ordinance 1258 on September 3, 2025. This ordinance amended Division 9, Chapter 2 of the City Code regarding accessory and junior accessory dwelling units.

MAJOR DEVELOPMENT APPLICATION
1240 Airport Park Blvd: A Major Site Development Permit to convert an existing structure into an Urgent Care and Administration Office. Approved by the Planning Commission on December 10, 2025.

Katherine Schaefers, Planning Manager
Enclosed: City of Ukiah 2040 General Plan – Appendix A

Appendix A | Goals, Policies, and A Implementation Programs

Ukiah 2040 General Plan Appendix A
Page A-2 Ukiah 2040 General Plan | December 2022
Appendix A | Goals, Policies, and Implementation
Programs
Section Title Page
Land Use Element ........................................................................................................................ 3 Economic Development Element................................................................................................ 12 Mobility Element.......................................................................................................................... 16 Public Facilities, Services, and Infrastructure Element............................................................... 22 Environment and Sustainability Element .................................................................................... 28 Safety Element............................................................................................................................ 36 Agriculture Element..................................................................................................................... 48 Housing Element (2019-2027).................................................................................................... 51

Policy Document | December 2022 Page A-3
Land Use Element

GOALS AND POLICIES
Residential
LU-1 To provide a variety of housing types that offer choices for Ukiah residents and create complete, livable neighborhoods.

LU-1.1 Existing Neighborhoods. The City shall maintain and enhance the quality of existing residential neighborhoods, ensuring adequate public facilities such as parks, streets, water supply, and drainage.

LU-1.2 Connectivity. The City shall encourage new residential development to incorporate design features that promote walking and connectivity between blocks.

LU-1.3 Neighborhood Infill. The City shall encourage objectively designed infill developments that enhance neighborhood quality and respond to community input in the planning and design of infill projects or non-residential, neighborhood-serving uses.

LU-1.4 High-Density Residential Uses. The City shall encourage new high-density residential development to locate in areas close to services and transit.

LU-1.5 Existing Neighborhoods. The City shall encourage all new multi-family residential development to comply with objective design and development standards.

Mixed-Use
LU-2 To encourage mixed-use development projects that create vibrant, walkable districts.

LU-2.1 Downtown Mixed-Use. The City shall encourage mixed-use development to locate within the Downtown. Such developments include housing, retail commercial, offices, open space, and other compatible uses. This development pattern should create vibrant, walkable areas, rather than non-pedestrian friendly strip retail developments along downtown corridors.

LU-2.2 Compatibility with Adjacent Uses. The City shall require new mixed-use development to be compatible with adjacent land uses, particularly residential uses, through site and architectural design techniques that establish transitions between uses and minimize negative impacts.

LU-2.3 Mixed-Use Design. The City shall require new mixed-use development to limit the number of access driveways, minimize building setbacks, and provide public ground floor spaces adjacent to sidewalks.

LU-2.4 Pedestrian Orientation. The City shall require new mixed-use and commercial developments with street or bike route frontage to include amenities that connect and create a comfortable environment for walking, sitting, and socializing.

LU-2.5 Live/Work. The City shall encourage mixed-uses in appropriate non-residential or existing mixed-use areas, facilitate the adaptive reuse of otherwise obsolete structures, and promote the growth of the arts and small business ventures in the community by allowing combined workspace and living quarters in appropriate buildings in commercial or industrial zoning districts.

Downtown
LU-3 To improve and enhance the appearance and vibrancy of Downtown Ukiah to create a high-quality place for residents, businesses, and visitors.

Ukiah 2040 General Plan Appendix A
Page A-4 Ukiah 2040 General Plan | December 2022
LU-3.1 Downtown Activities and Functions. The City shall maintain the Downtown as a center for shopping and commerce, social and cultural activities, and government and civic functions.

LU-3.2 New Downtown Development. The City shall ensure new development in the Downtown is compatible with existing uses and enhances the character of the area.

LU-3.3 Downtown Arts Entertainment. The City shall encourage private-sector investment in Downtown to transform it into a safe, vibrant, and prosperous arts and entertainment district that offers enhanced shopping, dining, recreational, and cultural experiences and events for residents, families, and visitors.

LU-3.4 Downtown Pedestrian Improvements. The City shall work with public agencies and private entities to create a safe, convenient, and pleasant pedestrian environment that supports the continued revitalization of the Downtown area. Improvements could include pedestrian-oriented amenities such as lighting, wider sidewalks, clearly marked pedestrian crossings, benches, landscaping, signage, sidewalk seating areas, and public art.

LU-3.5 Downtown Parking. The City shall prepare and implement a Downtown parking plan that provides enough parking downtown to support area businesses while maintaining a pedestrian-friendly environment.

Commercial
LU-4 To encourage the growth and development of retail, office, service, and entertainment uses in Ukiah to provide jobs, support City services, and make Ukiah an attractive place to live.

LU-4.1 High-Quality Building Design. The City shall encourage distinctive and high-quality commercial building design and site planning that respects the character of Ukiah.

LU-4.2 Commercial Center Design. The City shall require new commercial centers to incorporate standards of site design, construction, buffering, and screening when located adjacent to residential neighborhoods.

LU-4.3 Clustering Commercial Uses. The City shall encourage new commercial uses to group into clustered areas or centers containing professional offices, retail sales and services. New commercial clusters shall be located at the intersections of major thoroughfares and exclude “strip” commercial.

LU-4.4 Commercial Property Landscaping. The City shall require that landscaping on commercial properties be well maintained and encourage those commercial properties currently without landscaping to provide landscaping.

LU-4.5 Pedestrian Access to Commercial Uses. The City shall support convenient and direct pedestrian access to commercial uses that are located adjacent to residential areas.

Industrial
LU-5 To encourage, facilitate, and support the development of new employment and industrial uses and retention of existing industry to ensure compatibility with existing surrounding uses and planned uses.

LU-5.1 Industrial Park Development. The City shall encourage the development of well-designed industrial park areas to attract new light industrial development to Ukiah.

LU-5.2 Industrial Design standards. The City shall ensure that new industrial developments contribute to the overall attractiveness of the community through appropriate site design, architectural design, and landscaping.

LU-5.3 Screening Industrial Areas. The City shall require the screening of loading areas and open storage areas so that they are not visible from major roads.

Hillside Areas
LU-6 To preserve the natural character of hillside development areas.

Policy Document | December 2022 Page A-5
LU-6.1 Natural Features. The City shall require development to preserve outstanding natural physical features, such as the highest crest of a hill, natural rock outcroppings, major tree belts, and water features.

LU-6.2 Hillside Development. The City shall require new development in hillside areas to minimize grading to retain a natural hillside setting. The City shall encourage clustered dwelling units in hillside areas and roadways to be designed to preserve the ecological and scenic character of the hillsides.

LU-6.3 Open Space Access. The City shall encourage new hillside developments to provide public access (as appropriate) to adjacent greenways, open space corridors, trails, and parks if development is proposed adjacent to such facilities.

Development Pattern
LU-7 To ensure the orderly and timely growth and expansion of the City.

LU-7.1 Development Pattern. The City shall ensure an orderly, contiguous development pattern that prioritizes infill development, phases new development, encourages compactness and efficiency, preserves surrounding open space and agricultural resources, and avoids land use incompatibilities.

LU-7.2 Annexations. The City shall support property owners and applications that seek to annex adjoining unincorporated land within the City’s Sphere of Influence where the City determines it to be in residents’ interests to do so, to promote orderly development, to implement General Plan goals, and if the annexation would improve the fiscal health of the City, provide a more efficient delivery of municipal services to the area, and/or create a more logical City boundary. The City shall consider annexation of lands outside of the SOI but within the Planning Area if the City and all local agencies with relevant jurisdiction, arrive at an agreement ensuring adequately compensated for the costs it will incur due to development in its Planning Area.

LU-7.3 Annexation Considerations. The City shall consider the following factors when reviewing annexation proposals:
a. Availability of public services and facilities;
b. Proximity to existing urban development;
c. Existing agricultural uses;
d. Fiscal impacts on City finances;
e. Potential economic benefits;
f. Regional housing needs; and
g. Public health and safety.

LU-7.4 Required Public Facilities and Services. The City will support annexation of land for new development only if public services and facilities meeting City standards are available or plans are in place demonstrating their availability in the near future.

LU-7.5 Agriculture and Annexation. The City shall discourage urban development of unincorporated land in the City’s Sphere of Influence until such lands are annexed by the City. The City shall support County land use regulations that require minimum lot sizes to protect the viability of local agriculture and to prevent the development of incompatible or undesirable land use patterns prior to eventual annexation and urbanization.

LU-7.6 Fair Share Housing Needs Reduction. The City shall amend the Housing Element as a condition of annexation of residential lands from the County, to increase the City's housing fair share by the number of needed housing units the County is surrendering.

Ukiah 2040 General Plan Appendix A
Page A-6 Ukiah 2040 General Plan | December 2022
LU-7.7 County Housing Needs. The City shall give consideration to the County's regional "fair share" housing needs when reviewing applications for new development within the City’s Planning Area.

LU-7.8 Legal Non-conforming Uses. The City shall allow the continued use of legally existing non-conforming land uses in conformance with approved permits.

Growth Management
LU-8 To promote growth and development practices that improve quality of life, protect open space, natural and historical resources, and reduce resource consumption.

LU-8.1 Contiguous Development. The City shall strongly discourage new development that is not contiguous with existing urban development.

LU-8.2 Protection of Agricultural Areas. The City shall support the long-term economic viability of agriculture and agri-tourism and encourage landowners with land in agricultural production to undertake succession planning or agricultural preservation, as appropriate.

LU-8.3 Infill Development. The City shall encourage population and employment growth toward infill development sites within the city.

LU-8.4 Reuse of Underutilized Property. The City shall encourage property owners to revitalize or redevelop abandoned, obsolete, or underutilized properties to accommodate growth.

LU-8.5 Historic Preservation. The City shall strive to preserve residential and commercial structures of historic value to the community.

LU-8.6 Historic Resource Maintenance. The City shall encourage property owners to maintain these structures in accordance with local, state and federal standards.

Missing Middle Housing
LU-9 To provide opportunities for housing that can accommodate the needs, preferences, and financial capabilities of current and future residents in terms of different housing types, tenures, density, sizes, and costs.

LU-9.1 Mixed Residential Neighborhoods. The City shall encourage creation of mixed residential neighborhoods through new and innovative housing types that meet the changing needs of Ukiah households and expand housing choices in all neighborhoods. These housing types include, but are not limited to, single dwelling units, multi-family dwelling units, accessory dwelling units, small and micro units, use of pre-fabricated homes, and clustered housing/cottage housing.

LU-9.2 Housing Types and Designs. The City shall support housing types and designs that increase density while remaining consistent with the building scale and character present in existing neighborhoods. This includes multifamily units or clustered residential buildings that provide relatively smaller, less expensive units within existing neighborhoods.

LU-9.3 Adaptation of Existing Residential Units. The City shall encourage the adaptation of existing residential units to support multi-family use.

Special Planning Areas
LU-10 To assure coordination and consistency with special planning areas.

LU-10.1 Downtown Zoning Code. The City shall update the Downtown Zoning Code to assure consistency with the General Plan goals, policies, and land use designations.

Policy Document | December 2022 Page A-7
LU-10.2 Ukiah Valley Community. The City shall recognize that the Ukiah Valley is one community and foster collaborative decision-making between the City, county, and other public agencies.

LU-10.3 Ukiah Valley Area Plan. The City shall coordinate with Mendocino County to assure consistency with the Ukiah Valley Area Plan goals and policies.

LU-10.4 Ukiah Airport Master Plan. The City shall periodically update the Ukiah Airport Master Plan to reflect changing airport needs, aircraft type and use, and new noise and safety standards.

LU-10.5 Ukiah Municipal Airport Land Use Compatibility Plan. The City shall require new development within each airport zone that conforms to the height, use and intensity specified in the land use compatibility table of the Ukiah Municipal Airport Land Use Compatibility Plan (UKIALUCP).

LU-10.6 Mendocino County Airport Land Use Commission. As required within the UKIALUCP, the City shall refer new development projects in the Ukiah Airport area of influence to the Mendocino ALUC for review and comment.

Community Character and Design
LU-11 To ensure high-quality site planning, landscaping, and architectural design for all new construction, renovation, or remodeling.

LU-11.1 Commercial Character. The City shall update and maintain objective commercial design standards for all commercial land use designations, to enhance community character and encourage economic development.

LU-11.2 Gateways. The City shall establish key gateways to Ukiah through landscape design, appropriately-scaled signage, and building form, and historic themes to create a unique sense of place.

LU-11.3 Neighborhood Character. The City shall ensure that Zoning Code standards and design guidelines are reflective of neighborhood character and land use intensity, complement views from US 101.

LU-11.4 Public Buildings and Spaces. The City shall ensure that all new public buildings and places are consistent with City design review guidelines and standards, designed to be attractive, safe, and serve the neighborhood needs, and conform to standards similar to those applied to private development.

LU-11.5 Public Street Furniture. The Public Works Department shall establish public design standards for street furniture and landscaping that enhance the streetscape and general fabric of the City.

LU-11.6 Public Art. The City shall encourage the installation of public art and identify permanent funding mechanisms to support new installations and maintenance.

LU-11.7 Sign Regulations. The City shall update the Zoning Code sign provisions to incorporate a consistent program for new signs to simplify the signage process.

LU-11.8 Tree Preservation. The City shall encourage the preservation of trees on public and private property. Priority should be given to the preservation of trees considered significant due to their size, history, unusual species or unique quality.

LU-11.9 Historic Preservation and Restoration. The City shall encourage restorative maintenance to deteriorated buildings, particularly in Downtown, and restrict the demolition of historically and/or architecturally significant buildings to accommodate new development. The City shall encourage adaptive re-use of historic structures to maintain their historic character while supporting economic development.

LU-11.10 Water Efficient Landscaping. The City shall ensure that Zoning Code landscape standards and design guidelines reflect the most current water efficient landscape standards that include native, adaptive, and drought resistant vegetation, as well as provisions for street canopies and streetscape enhancement.

Ukiah 2040 General Plan Appendix A
Page A-8 Ukiah 2040 General Plan | December 2022
Environmental Justice
LU-12 To ensure that land use decisions do not adversely impact disadvantaged individuals and groups differently than the population as a whole.

LU-12.1 Fair Treatment and Meaningful Involvement. The City shall provide for the fair treatment and meaningful involvement in respect to the development and review of land use decision and policies for all people regardless of income, race, color, or national origin.

LU-12.2 Disproportionate Land Use Impacts. The City shall evaluate and avoid, reduce, or mitigate disproportionate adverse health and safety impacts of land use decisions on identified disadvantaged communities.

LU-12.3 Coordination on Siting of Utilities . The City shall coordinate with utility providers in the siting, site layout, and design of gas and electric facilities, including changes to existing facilities, to minimize environmental, and safety impacts on disadvantaged communities.

LU-13 To ensure that all community members have equal access to healthy foods, education, green spaces, and medical services.

LU-13.1 Access to Community Resources. The City shall identify and address gaps in access to residential, commercial, recreation, natural open spaces, and public resources, and ensure these community resources are accessible to all, regardless of income, race, color, or national origin.

LU-13.2 Equitable Capital Improvements. The City shall promote equitable investment in capital improvements Citywide.

LU-13.3 Public Assistance Collaboration. The City shall support non-profit organizations and public agencies which provide assistance to the homeless and access to healthcare, rental assistance and food assistance, and other poverty alleviating programs and services.

LU-14 To develop, implement, and enforce policies to ensure access to safe and sanitary housing throughout the community.

LU-14.1 Code Enforcement. The City shall prioritize code enforcement for rental housing in disadvantaged communities to assure safe, sanitary housing.

LU-14.2 Clean and Safe Drinking Water. The City shall ensure access to clean and safe drinking water for all community members.

LU-15 To promote meaningful dialogue and collaboration between members of disadvantaged communities and decision-makers to advance social and economic equity.

LU-15.1 Community Input. The City shall continue to facilitate opportunities for disadvantaged community residents and stakeholders to provide meaningful and effective input on proposed planning activities early on and continuously throughout the public review process.

LU-15.2 Communication Channels. The City shall continue to improve communication channels and methods for meaningful dialogue between community members and decision-makers. The City shall also continue to share public information across a variety of media, technological, and traditional platforms, and languages based upon the demographics of the community.

LU-15.3 Public Engagement. The City shall hold special meetings, workshops, and other public engagement opportunities at times and locations that make it convenient for disadvantaged community members to attend, particularly stakeholders who are the most likely to be directly affected by the outcome.

Policy Document | December 2022 Page A-9
LU-15.4 Translation Services. The City will continue to evaluate the need for the provision of translation services, to the extent feasible, in conveying important information to the community.

General Plan Use and Maintenance
LU-16 Promote the effective use and implementation of the General Plan Land Use Map.

LU-16.1 Land Use Map. The City shall maintain and implement a Land Use Map describing the types of allowed land uses by geographic location and the density of allowed uses within each designation.

LU-16.2 Land Use Designations. The City shall apply the land use designation specific parcels of land as designated on the General Land Use Map (Figure 2-1), even if a parcel does not meet other criteria specified in the General Plan.

LU-16.3 Zoning Designations. The City shall ensure that zoning designations are consistent with the General Land Use Map (Figure 2-1).

LU-16.4 Five-year General Plan Review. The City shall conduct a technical review of the General Plan every five years and revise and update as necessary to assure compliance with State law and responsiveness to current City needs.

Implementation Programs
Implements
Which
Policy(ies)
Responsible
Supporting
Department(s)
2022 – 20252026 – 20302031 – 2040AnnualOngoing
Downtown Pedestrian Improvements
The City shall, in collaboration with
interested public agencies and downtown
businesses, prepare a study of potential
sidewalk and streetscape improvements,
including lighting, wider sidewalks, clearly
marked pedestrian crossings, benches,
landscaping, signage, sidewalk seating
areas, and public art, to create a safe,
convenient, and pleasant pedestrian
environment Downtown.

LU – 3.4 Public Works
◼

Ukiah 2040 General Plan Appendix A
Page A-10 Ukiah 2040 General Plan | December 2022
Implementation Programs
Implements
Which
Policy(ies)
Responsible
Supporting
Department(s)
2022 – 20252026 – 20302031 – 2040AnnualOngoing
Downtown Parking Plan
The City shall prepare and implement a
Downtown parking plan that provides
enough parking downtown to support area
businesses while maintaining a
pedestrian-friendly environment. The City
will collaborate with other public agencies,
Downtown businesses, and the Chamber
of Commerce to identify parking
deficiencies, consider alternatives, and
prepare a comprehensive parking strategy.

LU – 3.5 Public Works
Community
Development
◼
Housing Element Amendments to Address
Annexation-related RHNA Changes
The City shall amend the Housing Element
in conjunction upon the annexation of any
County land designated for residential
uses and identified in the Mendocino
County Housing Element as satisfying a
portion of the County’s RHNA. The City
Housing element amendment will increase
the City’s RHNA by a commensurate
amount. The City shall coordinate any
proposed amendment in advance with the
Mendocino Council of Governments and
the California Department of Housing and
Community Development to assure the
amendment is acceptable to both
agencies.

LU – 7.6 Community
Development
◼
City Gateway Design Standards
The City shall prepare gateway design
standards for all City gateways, The
standards will address landscape design
and materials, signage, building form, and
historic themes that create a unique sense
of place.

LU – 11.2 Community
Development
Public Works ◼

Policy Document | December 2022 Page A-11
Implementation Programs
Implements
Which
Policy(ies)
Responsible
Supporting
Department(s)
2022 – 20252026 – 20302031 – 2040AnnualOngoing
Zoning Code Amendments
The City shall amend the Zoning Code to
address the following topics:
• Downtown Zoning Code and Design
Guidelines;
• Commercial Design standards that
address neighborhood character and
compatibility, including materials,
siting, scale, and landscaping;
• Sign regulations;
• Water efficient landscape standards;
• Historic Structure Preservation; and
• Zoning districts and map consistency
with the 2040 Land Use Diagram.

LU – 10.1
LU – 11
LU – 11.7
LU – 11.10
Community
Development
◼
Ukiah Municipal Airport Land Use
Compatibility Plan
The City shall review every five years and
update as necessary the Ukiah Municipal
Airport Land Use Compatibility Plan. The
review and potential update shall consider
changing airport facility and aviation
needs, new aircraft types, and new noise
and safety standards.

LU – 10.4
LU – 10.5
LU – 10.6
Airport
◼ ◼ ◼
Design Standards
The City shall update the Commercial
Design Guidelines to establish design
standards for street furniture and
streetscape landscaping.

LU – 11.1
LU – 11.4
LU – 11.5
Community
Development
◼

Ukiah 2040 General Plan Appendix A
Page A-12 Ukiah 2040 General Plan | December 2022
Five Year General Plan Review
The City shall conduct a technical review
of the General Plan every five years and
revise and update as necessary to assure
compliance with State law and
responsiveness to current City needs.

LU – 16.4 Community
Development
◼ ◼
Annexation Guide. The City shall develop,
maintain, and make publicly-available a
City of Ukiah Annexation Guide that
includes an annexation applicant’s
responsibilities, the requirements for
environmental review, requirements for
development plans, and fees associated
with applications for annexation.

LU – 7.2 Community
Development
◼
Economic Development Element

GOALS AND POLICIES
ED-1 To be a key partner with other agencies and organizations to achieve the City’s and the region’s economic goals.

ED-1.1 Interagency Coordination. Coordinate with local agencies, jurisdictions, and tribes; and other groups and organizations working to promote Ukiah’s economic development.

ED-1.2 Economic Initiatives. The City shall support regional economic initiatives and marketing activities by actively participating in economic development programs.

ED-1.3 Public /Private Partnerships. The City shall support and encourage public/private partnerships and other efforts to implement key development projects that meet the City’s economic development goals.

ED-1.4 Economic Development Strategy. The City shall prepare and periodically update an Economic Development Strategy, which shall be used as an operational guide to implement the economic development goals, policies, and programs of the General Plan.

ED-2 To promote a strong local economy by improving critical infrastructure, including water, transportation, and renewable energy.

ED-2.1 City Investment Priorities. During review and updates of public facility master plans and the Capital Improvement Program, the City shall prioritize investment in infrastructure, services, and other assets that are critical to future economic vitality, including public safety, water supply and quality, transportation, energy, and environmental resources, to support job growth and economic development.

ED-2.2 Energy Infrastructure. The City shall work to improve energy infrastructure to increase availability, reliability, sustainability, and use of renewable energy sources.

ED-3 To provide opportunities for expansion of businesses by ensuring the availability of suitable sites, appropriate zoning, and access to infrastructure and amenities.

Policy Document | December 2022 Page A-13
ED-3.1 Land Supply Inventory . The City shall maintain and/or annex an adequate land supply to meet projected commercial and industrial land demand.

ED-3.2 Infill Sites. The City shall coordinate with interested developers and relevant public agencies to develop infill sites consistent with the Land Use Diagram.

ED-3.3 Airport Industrial Park. The City shall develop adequate linkage from the Airport Industrial Park to the east side of the airport.

ED-4 To attract visitors and provide them with the amenities and services to make their stay in Ukiah enjoyable.

ED-4.1 Supporting Tourism. The City shall encourage and support the development of sustainable and innovative visitor-serving attractions that expand on the tourism market in Ukiah and Mendocino County and add to the quality of life for residents.

ED-4.2 Downtown. The City shall reinforce the Downtown as the civic and cultural heart of Ukiah by supporting public arts, cultural and entertainment programs, restoration of aging structures, lodging, and a robust mix of residential, retail, and service uses.

ED-4.3 Boutique Hotel. The City shall encourage and support the development of a boutique hotel in Downtown to provide an opportunity for overnight stays in the heart of Downtown and for visitors to enjoy and explore Ukiah’s local business, restaurants, and nightlife.

ED-4.4 Public Art. The City shall reduce barriers for private efforts that create art in public places (e.g., murals, sculptures), and support development of a Public Art Master Plan with appropriate funding mechanisms to support and maintain public art installations.

ED-4.5 Tourism-Supporting Services. The City shall support the local dining, lodging, and retail sectors to ensure visitors enjoy Ukiah to the fullest.

ED-5 To ensure Ukiah’s long-term economic success and sustainability by diversifying and expanding tourist attractions.

ED-5.1 Outdoor Recreation. The City shall maintain existing and promote new outdoor recreation opportunities and facilities at a high level to solidify Ukiah’s position as a leader in outdoor recreation.

ED-5.2 Bicycle Tourism. The City shall support efforts to promote and expand the local and regional bicycle trail network to attract visitors seeking a quality outdoor recreation experience.

ED-5.3 Great Redwood Trail. The City shall continue to support the expansion of the Great Redwood Trail linking Marin, Sonoma, and Humboldt counties and enhancing trail access in Ukiah.

ED-5.4 Special Events. The City shall support special events that benefit local businesses and contribute to the City’s overall economic success.

ED-5.5 Agricultural Tourism. The City shall strive to attract tourism centered on the agriculture industry throughout the Mendocino County region, including wineries, cannabis farm tours, farm stays, tasting rooms, and beverage production tours.

ED-6 To maintain a supportive business climate and a healthy economy that leads to the expansion of existing businesses and the attraction of new ones.

ED-6.1 Regulatory Environment. The City shall promote business-friendliness in the regulatory and permitting process through collaboration, innovation, exchange of ideas and best practices, and the improvement in clarity and

Ukiah 2040 General Plan Appendix A
Page A-14 Ukiah 2040 General Plan | December 2022
efficiency in the permitting process to take advantage of opportunities for streamlining in the development permit process.

ED-7 To grow the local economy and employment base by supporting efforts to retain, expand and attract local businesses.

ED-7.1 Attract Skilled Workers. The City shall support, maintain, and enhance the social and cultural amenities of the city (such as attractive public spaces, public art displays, museum(s), historic venues and sites, and recreational facilities and programs).

ED-8 To cultivate a culture of entrepreneurship to encourage and support local business start-ups.

ED-8.1 Business Incubators. The City shall encourage and support the establishment of local business incubators and programs designed to support the successful development of entrepreneurial companies through an array of business support resources and services.

ED-8.2 Home-Based Businesses. The City shall support and expand the opportunities for establishment and operation of home-based businesses that are compatible with surrounding neighborhoods.

ED-9 To improve labor force preparedness by providing the local workforce with the skills needed to meet the requirements of evolving business needs.

ED-9.1 Interagency Workforce Collaboration. The City shall work with Mendocino College, Ukiah Unified School District, and Mendocino County to support innovation and the development, retraining, and retention of a skilled workforce.

ED-9.2 Local Graduate Retention. The City shall actively support efforts to keep local high school and college graduates in the local workforce.

ED-9.3 City Hiring Practices. The City shall pursue best practices aimed at maximizing local hiring in coordination with education and training providers.

ED-10 To foster a robust and diversified local economy that provides quality employment and attracts stable businesses.

ED-10.1 Value-Added Agriculture. The City shall encourage and support the expansion of value-added agricultural products (e.g., processing, packaging, product development) with an emphasis on local distribution and consumption.

ED-10.2 Agricultural Support Services. The City shall encourage agricultural support services, such as vineyard and harvest management, to be based in Ukiah.

ED-10.3 Airport-Related Businesses. The City shall encourage and promote the development of airport-related businesses at the Ukiah Municipal Airport.

ED-10.4 Local-Serving Retail. The City shall encourage the establishment and expansion of commercial businesses that increase local spending within Ukiah and provide needed goods and services to residents and businesses.

ED-10.5 Culturally Diverse Businesses. The City shall review and amend its policies and procedures to ensure equity of opportunity to encourage and support a diverse business community.

ED-11 To diversify the economic base of Ukiah through the development and expansion of environmental, creative, and innovative businesses, including the non-profit sector.

Policy Document | December 2022 Page A-15
ED-11.1 Creative Economy. The City shall encourage the expansion of the local creative economy, including arts businesses, creative and performing arts, and non-profit organizations, as well as professional service sectors built around the creative arts.

ED-11.2 Green Economy. The City shall support the development and reduce local regulatory barriers for industries and businesses that promote and enhance environmental sustainability, greenhouse gas reductions, decarbonization, climate change adaptation, resiliency, and renewable energy generation, storage, and transmission, including solar power and other appropriate renewable sources.

ED-11.3 Support Green Businesses. The County shall promote the efforts of existing businesses that meet green business criteria; job training in green building techniques and regenerative farming; and strive to build green technologies into and decarbonize existing public facilities.

ED-11.4 Sustainable Business Development. The City shall encourage the development and expansion of businesses that advance social equity, environmental quality, and economic sustainability, as well as capitalize on key industry strengths. Economic sustainability includes planning and preparation for disaster response and long-term resiliency of businesses and economic assets in the city.

Ukiah 2040 General Plan Appendix A
Page A-16 Ukiah 2040 General Plan | December 2022
Implementation Programs
Implements
Which
Policy(ies)
Responsible
Supporting
Department(s)
2022 – 20252026 – 20302031 – 2040AnnualOngoing
Economic Development Strategy
The City shall prepare, adopt, and regularly
update an Economic Development
Strategy, which shall be used as an
operational guide to implement the
economic development goals and policies
of the General Plan. The strategy should
address business attraction, retention, and
expansion, infrastructure priorities,
tourism, intergovernmental coordination
and cooperation, economic diversification,
and workforce development. The
Economic Development Strategy should be
prepared in coordination with the local
business community, Economic
Development and Financing Corporation,
Greater Ukiah Chamber of Commerce,
West Business Development Center,
Mendocino Private Industry Council,
Mendocino County, and other groups and
organizations working to promote Ukiah’s
economic development. Following
completion of the Economic Development
Strategy, the City shall review and update
the Strategy every five years.

ED – 1.4 City Manager
Community
Development
◼
Mobility Element

GOALS AND POLICIES
MOB-1 To provide a citywide network of complete streets that meet the needs of all users, including pedestrians, bicyclists, motorists, transit, movers of commercial goods, children, seniors, and persons with disabilities.

MOB-1.1 Complete Streets. The City shall design streets holistically, using a complete streets approach, which considers pedestrians, bicyclists, motorists, transit users, and other modes together to adequately serve future land uses.

MOB-1.2 Multi-modal Access. The City shall require that all new development and redevelopment projects include provisions for multi-modal access provisions such as pedestrian and bicycle facilities, and vehicle and transit where relevant.

Policy Document | December 2022 Page A-17
MOB-1.3 Reallocate Space for Complete Streets. The City shall reallocate roadway space to allow complete streets improvements on streets with excess traffic capacity.

MOB-1.4 Block Length. The City shall limit block lengths to 600 feet wherever feasible to enhance multi-modal circulation and connectivity.

MOB-1.5 Balance Transportation Spending. The City will provide funding for transportation improvements for each of the key travel modes to support the long-term viability and safety of each mode, as well as required maintenance.

MOB-1.6 Roundabouts. The City shall consider the installation of roundabouts to enhance safety at intersections, and as a key component of Ukiah’s sustainability strategy.

MOB-1.7 Land Use and Street Classification Compatibility. The City shall ensure that General Plan land use density and intensity standards are compatible with the classification of streets from which the land uses are accessed.

MOB-1.8 New Development and Complete Streets. The City shall require all new development to provide adequate access for pedestrians, bicyclists, motorists, transit users, and persons with disabilities, as well as facilities necessary to support the City’s goal of maintaining a complete street network.

MOB-1.9 Bikeway Network . The City shall strive to complete the citywide bicycle network to create a full network of bicycle facilities throughout Ukiah, including bicycle lanes on all arterial and collector street segments where feasible.

MOB-1.10 Bicycle Parking Standards. The City shall maintain efficient and updated parking standards for bicycle parking to ensure development provides adequate bicycle parking, while reducing reliance on automobiles.

MOB-1.11 Pedestrian Barriers & Utility Relocation. The City shall support elimination of barriers to pedestrian travel on sidewalks and walking paths including requiring the relocation or undergrounding of utilities where appropriate.

Vehicle Miles Traveled
MOB-2 To reduce vehicle miles traveled (VMT) to and from residences, jobs and commercial uses in Ukiah.

MOB-2.1 Vehicle Miles Traveled (VMT) Reduction. The City shall support development and transportation improvements that help reduce VMT below regional averages on a “residential per capita” and “per employee” basis.

MOB-2.2 Transportation Demand Management. The City shall support programs to reduce vehicle trips, including measures such as reduced parking requirements that aim to increase transit use, car-pooling, bicycling and walking.

MOB-2.3 Pedestrian Facilities . The City shall encourage new development and redevelopment that increases connectivity through direct and safe pedestrian connections to public amenities, neighborhoods, shopping and employment destinations throughout the City.

MOB-2.4 Transit Facility Design. The City shall require new development to include facilities designed to make public transportation convenient.

MOB-2.5 Transit Ridership. The City shall support funding and incentives to increase transit ridership opportunities.

MOB-2.6 Downtown Transit Center. The City shall support creation of a Transit Center.

MOB-2.7 Bicycle Accessible Transit. The City shall encourage the MTA and other public transportation providers to make bus routes connecting Ukiah with other areas bicycle accessible.

Transportation Safety and Planning
MOB-3 To provide a safe transportation system that eliminates traffic-related fatalities and reduces non-fatal injury collisions.

Ukiah 2040 General Plan Appendix A
Page A-18 Ukiah 2040 General Plan | December 2022
MOB-3.1 Safety Improvements. The City shall provide safety improvements along high-injury and fatality streets and intersections.

MOB-3.2 Safe Routes to Schools . The City shall promote Safe Routes to Schools programs for all schools serving the City.

MOB-3.3 Safety and Traffic Calming. The City shall use traffic calming methods within residential and mixed-use areas, where necessary, to create a pedestrian-friendly circulation system.

MOB-3.4 Safety Considerations. The City shall ensure that planned non- transportation capital improvement projects, on or near a roadway, consider safety for all travel modes during construction and upon completion.

MOB-3.5 Community Engagement . The City shall engage the community in promoting safe walking and bicycling through education and outreach.

MOB-3.6 Emergency Access. The City shall work with the Ukiah Valley Fire Authority to address street design and the accessibility required for emergency vehicles.

MOB-3.7 Video Enforcement. The City shall consider the use of video surveillance for traffic enforcement.

MOB-3.8 Truck Traffic in Residential Areas. The City shall discourage truck traffic on local residential streets to increase safety and reduce noise.

Transportation and Mobility Needs
MOB-4 To maintain an ongoing periodic evaluation process to inventory transportation and mobility needs.

MOB-4.1 Multi-modal Transportation Studies. The City shall conduct multi-modal transportation studies in association with required updates to the Regional Transportation Plan to update the General Plan and appropriately update and amend the Mobility Element.

MOB-4.2 Transportation Performance Measures .The City shall evaluate transportation performance holistically, taking into consideration multi-modal system performance measures that emphasize the efficient movement of people.

MOB-4.3 Safety Monitoring . The City shall monitor high-priority corridors and intersections to better understand the potential for safety improvements.

MOB-4.4 Level of Service. The City shall use peak-hour traffic level of service (LOS) to consider whether a street or intersection has adequate remaining capacity to service the traffic generated by a proposed project, except that meeting traffic LOS goals should not occur in a manner that would limit travel by other modes or result in increased VMT.

MOB-4.5 Peak Hour Traffic LOS Goals. The City shall adopt the following intersection peak hour traffic Level of Service (LOS) goals to guide street network planning (but not to be used for assessing CEQA impacts):
a) At intersections with signals, roundabouts or four-way stop signs: operation at LOS D, except where pedestrian volumes are high in which case LOS E may be acceptable. b) At intersections with stop signs on side streets only: operation at LOS E, except where side streets have very low traffic volumes, in which case LOS F conditions may be acceptable.

MOB-4.6 Alternate Access Routes. The City shall explore the feasibility of establishing alternate north/south and east/west access routes.

Policy Document | December 2022 Page A-19
MOB-4.7 Meet Future Travel Demand. The City shall extend existing streets or construct new streets as needed to meet existing and future travel demands
Parking
MOB-5 To promote a balance of multi-modal options, to be reflected in flexible parking regulations.

MOB-5.1. Incentives for Travel Alternatives. The City shall work with downtown businesses and employers reduce the need for and expenses of off-street parking by supporting and encouraging alternatives to single-occupant vehicles such as incentives and priority parking for carpools and vanpools, secure bicycle parking, and free bus passes.

MOB-5.2 Support for Charging Stations. The City shall support the provision of charging stations for electric vehicles, as well as other types of vehicles, as new technologies emerge.

Aviation
MOB-6 To promote the Ukiah Municipal Airport for the Community's benefit and provide for the airport’s longterm viability, including ensuring future development considered by the 2040 Ukiah General Plan is consistent with the Ukiah Municipal Airport Land Use Compatibility Plan (UKIALUCP).

MOB-6.1 Airport Promotion. The City shall ensure that the airport is a key part of the City's economic development strategy and promotional efforts.

MOB-6.2 Uniform Airport Area Development Regulations. The City shall coordinate with the County to develop a similar or duplicate implementing code for development in and around the airport.

MOB-6.3 Infill Policy for Compatibility Zones. The City shall work collaboratively with the County to develop an In-fill Policy within the Municipal Airport Compatibility Zones.

Implementation Programs
Implements
Which Policy(is)
Responsible
Supporting
Department(s)
2022 – 20252026 – 20302031 – 2040AnnualOngoing
Street Design Standards
The City shall update street design
standards and street classifications every
five years to support provision of a
citywide network of complete streets,
based on the National Association of City
Transportation Officials (NACTO) Urban
Street Design Guide.

MOB – 1.1
MOB – 1.8
Public Works
◼ ◼ ◼
Transportation Impact Fees
The City shall reevaluate and update its
transportation impact fees every five years
to ensure fees are adequate and fairly
apportion to new development.

MOB – 1.5 Public Works
Community
Development
◼ ◼ ◼

Ukiah 2040 General Plan Appendix A
Page A-20 Ukiah 2040 General Plan | December 2022
Implementation Programs
Implements
Which Policy(is)
Responsible
Supporting
Department(s)
2022 – 20252026 – 20302031 – 2040AnnualOngoing
Right-of-Way Needs
The City shall revise and update the
projected street right-of-way needs for
completion of the City’s future mobility
network to ensure provision of complete
streets and completion of the planned
citywide bicycle and pedestrian networks.

MOB – 1.1
MOB – 1.3
Public Works
Community
Development ◼
Vehicle Miles Traveled (VMT)
Performance Measures
The City shall adopt criteria for assessing
significant transportation impacts based
on vehicle miles traveled (VMT) consistent
with State CEQA Guidelines, incorporating
best practices including guidance provided
by the Governor’s Office of Planning &
Research (OPR).

MOB – 2.1
MOB – 2.2
Community
Development
Public Works
◼
VMT Modeling
The City shall develop a model for
assessing VMT for new development
consistent with new VMT performance
measures.

MOB – 2.1
MOB – 2.2
Community
Development
Public Works
◼
TDM Program
The City shall, in coordination with
Caltrans and the Mendocino Transit
Authority, amend the Development Code to
include a menu of options to facilitate and
encourage alternate modes of travel and
transportation.

MOB – 2.2 Community
Development
Public Works ◼
Transit Center
The City shall, in coordination with MTA
and other agencies and organizations seek
funding for and conduct a feasibility study
to develop a downtown transit center,
located as close to retail and services as
feasible.

MOB – 2.7 Public Works
Community
Development ◼

Policy Document | December 2022 Page A-21
Implementation Programs
Implements
Which Policy(is)
Responsible
Supporting
Department(s)
2022 – 20252026 – 20302031 – 2040AnnualOngoing
Net Zero
The City shall develop and implement a
“net zero” strategy aimed at achieving zero
fatalities due to collisions on Ukiah’s
street network.

MOB – 3.1
MOB – 3.2
MOB – 3.3
MOB – 3.4
MOB – 4.3
Public Works
Community
Development ◼ ◼
Regional Transportation Plan Updates
The city shall conduct transportation
studies every five years in association with
required updates to the Regional
Transportation Plan. The transportation
studies shall, at a minimum, assess the
need to provide additional future mobility
facilities based on the long-term projected
traffic, transit, bicycle paths, and
pedestrian access needs.

MOB – 4.1
MOB – 4.2
Public Works
Community
Development
◼ ◼ ◼
Short-term Transportation Study
The City shall complete a transportation
study to make recommendations for the
purpose of increasing the provision of
multi-modal transportation facilities,
enhancing safety, lowering the rate of
collisions and reducing travel delays.

MOB – 4.1 Public Works
Community
Development ◼
North/South and East/West Access
Routes
The City shall prepare a study to explore
the feasibility of establishing alternate
north/south and east/west access routes,
as well as the extension of existing streets
or construction new streets meet existing
and future travel demands.

MOB – 4.6
MOB – 4.7
Public Works
Community
Development
◼
Airport Parcels
The City shall prepare a study to identify
parcels on which new development could
benefit the airport and supports
annexation of those parcels.

MOB – 6.1
MOB – 6.2
MOB – 6.3
Community
Development
◼

Ukiah 2040 General Plan Appendix A
Page A-22 Ukiah 2040 General Plan | December 2022
Public Facilities, Services, and Infrastructure Element

GOALS AND POLICIES
Water
PFS-1 To maintain a safe and adequate water system to meet the needs of existing and future development.

PFS-1.1 Water Service Annexation Impacts. The City shall ensure newly annexed areas within the city do not negatively affect water services to existing customers.

PFS-1.2 Russian River Water Rights. The City shall protect and confirm all Russian River tributary water rights to which the Ukiah Valley and City may be entitled.

PFS-1.3 Consolidation of Water Districts . The City shall support the consolidation of water districts as part of future annexations to establish efficient services and ensure adequate water supply and delivery.

PFS-1.4 Water Storage. The City shall encourage the protection and expansion of existing sources and methods of water storage for future development.

PFS-1.5 Recycled Water Project. The City shall explore the potential expansion of the Recycled Water Project to provide non-potable water to areas of large-scale urban irrigation, such as Todd Grove Park and the golf course.

PFS-1.6 Reduce Reliance on the Russian River. The City shall continue to support the reduction on the reliance of surface water from the Russian River as a water source to serve the community.

PFS-1.7 Groundwater Recharge. The City shall enhance groundwater supply by looking to expand its capacity to recharge by developing storm ponding and retention basins where feasible. In some areas these ponds or basins can be incorporated into a recreational area, used as wildlife habitat area, or may be required by new development to offset impacts associated with new nonpermeable surfaces.

Wastewater
PFS-2 To maintain quality wastewater treatment and disposal services to meet the needs of existing and future development.

PFS-2.1 Level of Service. The City shall maintain an adequate level of service in the City's wastewater collection, treatment, and disposal system to meet the needs of existing and projected development and all State and Federal regulations.

PFS-2.2 Wastewater System Funding. The City shall ensure that the wastewater collection, treatment, and disposal system has adequate funds and programs for maintenance, upgrades when required, and day-to-day operations.

PFS-2.3 Wastewater Service Coordination. The City shall coordinate with the Ukiah Valley Sanitation District to ensure ongoing wastewater treatment capacity within the wastewater treatment plant for future development.

PFS-2.4 Ukiah Valley Sanitation District . The City should collaborate with Ukiah Valley Sanitation District to ensure adequate wastewater collection and treatment is provided to properties within City limits and their jurisdictional boundaries.

PFS-2.5 Out of Area Service Agreements. The City shall require out of service area agreements in rural areas where the Ukiah Valley Sanitation District cannot feasibly provide wastewater services.

PFS-2.6 Wastewater Service Capacity. The City shall ensure there is adequate wastewater service capacity prior to annexation of additional land.

Policy Document | December 2022 Page A-23
PFS-2.7 Protect Groundwater Quality . The City shall preserve and protect groundwater quality through the implementation of best practices and innovative methods for modern wastewater disposal.

Solid Waste, Composting and Recycling
PFS-3 To ensure adequate solid waste, recycling, and composing services and maximize waste diversion from landfills.

PFS-3.1 Solid Waste Diversion Targets. The City shall encourage increased community participation in recycling and composting programs and weekly collection of recyclables and organic waste to achieve 85 percent diversion for community waste and municipal operations by 2030.

PFS-3.2 Waste Management Services. The City shall continue waste management service contracts to provide quality and cost-effective solid waste removal throughout the city and require all residents and businesses to comply with solid waste collection and recycling service requirements.

PFS-3.3 Construction and Demolition Waste. The City shall require all new development to comply with the current CALGreen requirements for construction and demolition waste diversion.

PFS-3.4 Recycling Receptacles and Biodegradable/Recycled-Materials Products. The City shall require the availability of recycling and composting receptacles and use biodegradable or recycled-material products instead of single-use plastic products at all City facilities and City-sponsored events.

PFS-3.5 Sustainable Purchasing Policy. The City shall prioritize purchasing products that are environmentally friendly; made with postconsumer recycled content; are recyclable, compostable, or reusable; are less toxic than conventional goods; are manufactured locally; and are fairly traded.

PFS-3.6 Waste Reduction Education. The City shall collaborate and partner with local organizations to provide waste reduction education programs to residents and businesses.

PFS-4 To enforce Citywide codes and ordinances, with special attention regarding private property maintenance, abandoned vehicles, rubbish/weeds, and public nuisances.

PFS-4.1 Solid Waste Diversion Targets. The City shall provide adequate staffing to support code enforcement efforts to the extent financially feasible.

Stormwater Management
PFS-5 To maintain an adequate stormwater management system to accommodate runoff and improve environmental quality.

PFS-5.1 Low Impact Development . The City shall require new developments to install green infrastructure consistent with Stormwater Low Impact Development Technical Design Manual and the sustainable objectives of the State and the North Coast Regional Water Quality Control Board, including but not limited to pervious pavement, infiltration basins, raingardens, green roofs, rainwater harvesting systems, and other types of low impact development (LID).

PFS-5.2 Pollutants Discharge Reduction. The City shall provide non-point source pollution control programs to reduce and control the discharge of pollutants into the storm drain system and Russian River.

Utilities and Energy
PFS-6 Improve the efficiency and quality of utility services in the city.

PFS-6.1 New Initiatives. The City shall support innovative, sustainable, and alternative practices and technologies for delivering energy and utility services to the community.

Ukiah 2040 General Plan Appendix A
Page A-24 Ukiah 2040 General Plan | December 2022
PFS-6.2 Undergrounding Utilities . The City shall encourage the conversion of overhead transmission and distribution lines to underground as economically feasible.

PFS-6.3 Energy Efficiency Education . The City shall support education for residents and businesses on the importance of energy efficiency.

PFS-6.4 Energy Efficient Municipal Buildings. The City shall require municipal and public buildings to operate at the highest energy efficiency level economically and operationally feasible.

PFS-6.5 Privately-Owned Building Retrofits . The City shall promote retrofitting of privately-owned buildings to increase energy efficiency.

PFS-6.6 Local Power Generation. The City shall support local power generation and production that is economically and operationally feasible.

PFS-7 To ensure a safe and resilient utility and infrastructure system.

PFS-7.1 Resilient Electric Grid. The City shall explore options for hardening the electric grid to continue to provide ongoing service to the community without disruption caused by natural (seismic events, flooding, wildfires, extreme wind events) or man-made hazards.

PFS-7.2 Vegetation Clearance. The City shall require vegetation clearance and tree trimming adjacent to transmission and distribution lines and other critical electrical infrastructure.

PFS-7.3 Electric Infrastructure Upgrades. The City shall implement electrical infrastructure upgrades as outlined in the Ukiah Wildfire Mitigation Plan to reduce the risk of wildfires.

PFS-8 To transition to sustainable and renewable energy.

PFS-8.1 Utility Sustainability. The City shall continue to expand alternative, sustainable electric energy use.

PFS-8.2 Sustainable Design and Energy Efficiency . The City shall encourage the site planning and design of new buildings to maximize energy efficiency.

PFS-8.3 Solar Photovoltaic Use. The City shall encourage solar photovoltaic systems for existing residential uses to reduce the reliance on the energy grid.

PFS-8.4 Residential Electric Appliances. The City shall encourage the use of electric appliances and utility hook-ups in all new residential development.

PFS-8.5 LEED Certification. The City shall encourage new construction, including municipal building construction, to achieve third‐party green building certifications, such as LEED rating system, or an equivalent.

PFS-8.6 Incentivize Energy Efficiency . The City shall consider providing incentives, such as prioritizing plan review, permit processing, and field inspection services, for energy efficient building projects.

Fire Protection and Emergency Response
PFS-9 To maintain effective, fast, and dependable fire protection and emergency medical response in Ukiah.

PFS-9.1 Emergency Medical Services. The City shall coordinate emergency medical services between agencies servicing the city.

PFS-9.2 Fire Prevention . The City shall require all new development to include provisions for onsite fire suppression measures and/or management of surrounding vegetation to provide minimum clearance between structures and vegetation.

Policy Document | December 2022 Page A-25
PFS-9.3 Interagency Coordination . The City shall coordinate with Cal Fire and the Ukiah Valley Fire Authority regarding the fire protection and wildfire safety standards.

Law Enforcement
PFS-10 To provide high-quality public safety and crime reduction services to maintain a safe and secure community.

PFS-10.1 Police Staffing. The City shall prioritize the maintenance of Police Department staffing levels in line with community needs.

PFS-10.2 Interagency Coordination. The City shall coordinate with the Mendocino County Sherriff’s Office on joint operations and services.

PFS-10.3 Community Policing Strategies. The City shall promote community policing strategies that strengthen trust and collaboration with the residents of Ukiah, including those of all races, ethnicities, and cultural backgrounds, economic status, sexual orientation, and disabilities, and ensure public safety through meaningful cooperation and problem-solving techniques.

PFS-10.4 School Safety. The City shall collaborate with the Ukiah Unified School District to enhance school security and student, teacher, and administrator safety.

PFS-10.5 Public Safety Communications. The City shall use a variety of communication methods (e.g., social media, text messaging, television and radio alerts, website postings) to communicate and inform residents and businesses about crimes, investigations, and emergencies.

Community Facilities
PFS-11 To ensure adequate community facilities. (Source: Existing GP Goal CF-10, modified) .

PFS-11.1 Adequate Community Facilities . The City shall develop or identify adequate and appropriate community facilities for public meetings and cultural activities.

PFS-11.2 Joint-Use Facilities . The City shall partner with Mendocino County and the Ukiah Unified School District to provide joint-use facilities.

Parks and Recreation
PFS-12 To provide parks, recreational facilities, and trails for residents and visitors.

PFS-12.1 Connected Park System. The City shall provide an interconnected park system that creates an urban greenbelt and links all trail systems within the City.

PFS-12.2 Expansion of Recreational Amenities and Programs. The City shall expand amenities and recreational programs in parks and recreational facilities that accommodate a variety of ages and address the needs of families.

PFS-12.3 Equitable Access to Parks and Recreation Facilities . The City shall establish new parks and recreation facilities to ensure all residents have access within a one-mile radius of their place of residence regardless of socioeconomic status.

PFS-12.4 Access for Persons with Disabilities. The City shall design all parks and recreation facilities to have adequate access for those with accessibility issues.

PFS-12.5 Park Visibility. The City shall assure that all parks are visible from the public right-of-way when possible and remain clear of visual obstructions that reduce visual connections for safety concerns.