Yuba City City Council
August 18, 2026

without a Special Standards Combining District; located on 12 acres at the southeast corner of the intersection of State Route 20 (Colusa Highway) and El Margarita Road.

Attachments:

1. Ordinance - Calvary Christian Center

2. Exhibit A - X19 Combining Zone District description

3. Exhibit B - Rezoning Map

4. Location Map

5. Site Plan and Building Elevations

6. Conditions of Approval

7. Environmental Assessment 23-13
Prepared By: Submitted By:

Doug Libby
Development Services Director
Robert Bendorf
City Manager

ATTACHMENT 1

ORDINANCE NO. ____

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF YUBA CITY APPROVING REZONE (RZ) 23-05 AND REZONING ASSESSOR’S PARCEL 63- 010-145 FROM A OFFICE COMMERCIAL ZONE DISTRICT COMBINED WITH THE X19 ZONE DISTRICT (C-O X19) BY REMOVING THE X19 ZONE DISTRICT

RESULTING IN THE PROPERTY BEING REZONED TO THE OFFICE
COMMERCIAL (C-O) ZONE DISTRICT, ON A 12 ACRE PARCEL LOCATED AT THE SOUTHEAST CORNER OF EL MARGARITA ROAD AND STATE ROUTE 20 (COLUSA HIGHWAY).

WHEREAS, the City received an application Rezone (RZ) 23-05 and Amended Use Permit (Am UP) 07-13, for the construction of the Calvary Christian Center; and; WHEREAS, the following entitlements are being considered for approval by this ordinance:
• Rezone (RZ) 23-05: proposes to amend the zone district from an Office Commercial District with a Special Standards Combining District (C-O X19) to the C-O Zone District without a Special Standards Combining District (C-O X19) • Environmental Assessment (EA 23-13).
(collectively “Project”); and
WHEREAS, pursuant to the authority and criteria contained in the California Environmental Quality Act of 1970 (“CEQA”), the City, as the Lead Agency, has analyzed the proposed Project and has prepared an Initial Study proposing a Mitigated Negative Declaration (EA 23-13) for the Project; and
WHEREAS, on July 8, 2026, the Planning Commission concurrently conducted a duly noticed public hearing on applications RZ 23-05 and Am UP 07-13, at which time it received input from City Staff, the applicant; the public comment portion was opened, and public testimony and evidence, both written and oral, was considered by the Planning Commission, after which public testimony was closed; and
WHEREAS, the Planning Commission reviewed all associated documents prepared for the Project, including those related to application RZ 23-05 and Am UP 07-13, and all the evidence received by the Planning Commission; and
WHEREAS, after deliberation and consideration of all relevant items, the Planning Commission approved the Calvary Christian Center (Am UP 07-13) and Environmental Assessment 23-13 by adopting Resolution PC 26-07, and recommended the City Council of the City of Yuba City adopt an ordinance approving Rezone 23-05, with a map included herein as Exhibit A, by adopting Resolution PC 26-08; and
WHEREAS, on August 18, 2026, the Yuba City Council conducted a duly noticed public hearing on the project, at which time it received input from City Staff; public comment portion was opened, and public testimony and evidence, both written and oral, was considered by the City Council, after which public testimony was closed and this ordinance introduced; and WHEREAS, the City Council of Yuba City, after review and consideration of the Environmental Assessment, the City Council desires to find that Environmental Assessment (EA)

23-13 prepared for the project is in conformance with State and local environmental guidelines; and
WHEREAS, the City Council of Yuba City considered said recommendations of the Planning Commission on the matter, the City Council desires to approve RZ 23-05 as defined.

NOW, THEREFORE, the City Council of the City of Yuba City does ordain as follows:

1. Recitals. The City Council finds that the recitals are true and correct and incorporates the same herein as if set forth in full.

2. CEQA Findings: The Planning Commission of the City of Yuba City previously approved EA 23-13 by adopting an Initial Study/Mitigated Negative Declaration and accompanying Mitigation Monitoring and Reporting Program for the project. As such, the City Council finds RZ 23-05 has already been fully assessed in accordance with CEQA, there have been no substantial changes in circumstances, no subsequent review is required under CEQA Guidelines section 15162, and no further action or review is required under CEQA.

3. Approval of Rezone 23-05: The City Council finds that Rezone 23-05 is consistent with the General Plan as amended. The City Council further finds that Rezone 23-05 i) is consistent with the General Plan goals and policies as both are amended; ii) is consistent with the purpose of the zoning ordinance to promote and protect the public's health, safety, peace, comfort, convenience and general welfare; and iii) the Project would provide open space, light, air, privacy, convenience of access, aesthetic values, protection of environmental values, and protection of public and private improvements. iv) the project will allow for the creation of quality balanced neighborhoods that provide housing options for the City.

4. Approval of Rezone 23-05. The City Council hereby approves Rezone 23-05 for the Calvary Christian Center, rezoning approximately 12 acres located on the southeast corner of El Margarita Road and State Route 20, Assessor’s Parcel Number 63-010-145, from the “C-O X19” designation to the “C-O” designation as shown on the map in Exhibit A.

5. Severability. If any section, subsection, sentence, clause, phrase, or portion of this ordinance is, for any reason, held to be invalid or unconstitutional by the decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this ordinance. The City Council hereby declares that it would have adopted this ordinance and each section, subsection, sentence, clause, phrase, or portion thereof, irrespective of the fact that any one or more sections, subsections, sentences, clauses, phrases, or portions thereof may be declared invalid or unconstitutional.

6. Publication. The City Clerk shall certify to the adoption of this Ordinance and cause it to be published, in accordance with Government Code, Section 36933, or as otherwise required by law.

7. Effective Date of Resolution. This ordinance shall take effect and be in full force and effect from and after thirty (30) days after its final passage and adoption.

I HEREBY CERTIFY that the foregoing Ordinance was introduced by the City Council after waiving reading, except by Title, at a regular meeting thereof held on the 18th day of August 2026, and adopted the Ordinance after the second reading at a regular meeting held on the 1st day of September, by the following vote:

Ayes:

Noes:

Absent:

Recused:

CITY OF YUBA CITY
_____________________________
Marc Boomgaarden, Mayor
ATTEST:
______________________________
Ciara Wakefield, City Clerk

APPROVED AS TO FORM

COUNSEL FOR YUBA CITY
_________________________________
Shannon Chaffin, City Attorney
Aleshire & Wynder, LLP
Exhibit A: X19 Combining Zone District description
Exhibit B: Rezone Map
I, ______________________________, City Clerk of the City of Yuba City, California, DO HEREBY CERTIFY that the foregoing is a true and accurate copy of the Ordinance passed and adopted by the City Council of the City of Yuba City on the date and by the vote indicated herein.

EXHIBIT A

-9-
Criteria of Development

1. Residences constructed in the R-1-X18 District adjacent to the existing development to the south and west shall be single-family residences of single-story construction.

X19 Area: Southeast corner of Colusa Ave. & El Margarita Rd.

Reason: To ensure the future provision for transportation needs: 1) a fair share of fees will be paid for traffic signal improvements at Walton Avenue/Lassen Blvd./Tharp Road intersection are made, 2) a fair share will be paid for the improvements cost of highway road improvements based on an AB 1600 study in effect at the time of issuance of building permits and 3) that Harter Road and Lassen Blvd. are improved to city standards and extended across this property along with El Margarita Road.

Criteria of Development
1) To mitigate the impacts from the project on the intersection of Walton Avenue and Lassen Blvd., the developer shall contribute 45 percent of the total cost for the installation a traffic signal prior to the issuance of building permits. 2) To mitigate the impacts from the project on the intersection of Tharp Road and Lassen Blvd., the developer shall contribute 70 percent of the total cost for the installation a traffic signal prior to issuance of building permits.
3) Sufficient right-of-way shall be set aside through this property from the current terminus of Lassen Blvd to El Margarita Road for a road connection between these points and for the southerly extension of Harter Road from the highway to the south end of this property. Improvements along these right-of-ways shall be completed as development occurs along these streets to city standards by the property developers. 4) Should artifacts or unusual amounts of some bone or shell be uncovered during the demolition or construction activity, work shall be stopped and a qualified archeologist shall be contacted for on-site consultation. If the bone appears to be human, California law mandates that the Sutter county Coroner and the Native American Heritage Commission be contacted.

X20 Area: West side of Elmer Road, south of the westerly extension of Lizanne Drive, and the area lying between Tuly Parkway right of way and the section of Tierra Buena which as annexed to the City in April of 2004 along with the area lying between Vine Avenue and the westerly extension of Lizanne Drive.

Conditions of Preannexation Zoning

EXHIBIT B

EXISTING PROPOSED
City of Yuba City
Parcels
Zoning
Project Site ±
REZONE 23-05
R-1
PF
C-3
R-1
M-1
R-1
R-1
C-M R-1
HWY 20

SPIRIT DR
EL M
A
R
G
A
RITA
R
D

RUTH AVE
K

MI BERLY
D
R
BR
Y
N
M
AW
R
D
R

BRYAN WAY

COLUSA FRONTAGE RD
HWY 20
EL M
A
R
G
A
R
TI A
R
D

PROJECT

LOCATION

PROJECT

LOCATION

CALVARY CHRISTIAN CENTER, ZONING MAP
R-1
PF
C-3
R-1
M-1
R-1
R-1
C-M R-1
HWY 20

SPIRIT DR
EL M
A
R
G
A
RITA
R
D

RUTH AVE
K

MI BERLY
D
R
BR
Y
N
M
AW
R
D
R

BRYAN WAY

COLUSA FRONTAGE RD
HWY 20
EL M
A
R
G
A
R
TI A
R
D
C-O X19 C-O

ATTACHMENT 2

20 SPIRIT DR

EL MARGARITA RD

COLUSA FRONTAGE RD

RUTH AVE

KIMBERLY DR

BRYAN WAY

BRYN MAWR DR

EL MARGARITA RD
20 ¶
Use Permit Amendment 07-13
Southeast corner of SR 20 and El Margarita Rd

SUBJECT AREA

ATTACHMENT 3

ATTACHMENT 4

1 CITY OF YUBA CITY

CONDITIONS OF APPROVAL
AMENDED USE PERMIT 07-13
JULY 8, 2026

CALVARY CHRISTIAN CENTER
APN: 063-010-145

NOTICE TO PROJECT APPLICANT
In accordance with the provisions of Government Code Section 66020(d)(1), the imposition of fees, dedication, reservations or exactions for this project are subject to protest by the project applicant at the time of approval or conditional approval of the development or within ninety (90) calendar days after the date of imposition of fees, dedications, reservation, or exactions imposed on the development project. This notice does not apply to those fees, dedications, reservations, or exactions which were previously imposed and duly noticed; or, where no notice was previously required under the provisions of Government Code Section 66020(d)(1) in effect before January 1, 1997.

IMPORTANT: PLEASE READ CAREFULLY
Please note that this project is subject to a variety of discretionary conditions of approval.

These include conditions based on adopted City plans and policies, those determined through the use permit review and environmental assessment essential to mitigate adverse effects on the environment including the health, safety, and welfare of the community, and recommended conditions for development that are not essential to health, safety, and welfare, but would on the whole enhance the project and its relationship to the neighborhood and environment.

Discretionary conditions of approval may be appealed. All code requirements, however, are mandatory and may only be modified by variance, provided the findings can be made.

All discretionary conditions of approval will ultimately be deemed mandatory unless appealed by the applicant to the City Council within 10 days after the decision by the Planning Commission. In the event you wish to appeal the Planning Commission’s decision or discretionary conditions of approval, you may do so by filing a written appeal with the City Clerk. The appeal shall state the grounds for the appeal and wherein the Commission failed to conform to the requirements of the zoning ordinance. This should include identification of the decision or action appealed and specific reasons why you believe the decision or action appealed should not be upheld.

Approval of this use permit shall be considered null and void in the event of failure by the applicant and/or the authorized representative, architect, engineer, or designer to disclose and delineate all facts and information relating to the subject property and the proposed development.

Approval of this use permit may become null and void in the event that development is not completed in accordance with all the conditions and requirements imposed on this use permit, the zoning ordinance, and all City standards and specifications. This use permit is granted, and the conditions imposed, based upon the application submittal provided by the applicant, including any operational statement. The application is material to the issuance of this use permit. Unless the conditions of approval specifically require operation inconsistent

2 with the application, a new or revised use permit is required if the operation of this establishment changes or becomes inconsistent with the application. Failure to operate in accordance with the conditions and requirements imposed may result in revocation of the use permit or any other enforcement remedy available under the law. The City shall not assume responsibility for any deletions or omissions resulting from the use permit review process or for additions or alterations to any construction or building plans not specifically submitted and reviewed and approved pursuant to this use permit or subsequent amendments or revisions. These conditions are conditions imposed solely upon the use permit and are not conditions imposed on the City or any third party. Likewise, imposition of conditions to ensure compliance with federal, state, or local laws and regulations does not preclude any other type of compliance enforcement.

These conditions are applicable to any person or entity making use of this use permit, and references to “developer” or “applicant” herein also include any applicant, property owner, owner, leasee, operator, or any other person or entity making use of this use permit.

CONDITIONS OF APPROVAL

1. To the furthest extent allowed by law, applicant/property owner shall indemnify, hold harmless and defend City and each of its officers, officials, employees, consultants, agents and volunteers from any and all loss, liability, fines, penalties, forfeitures, damages and costs (including attorney's fees, litigation expenses and administrative record preparation costs) arising from, resulting from, or in connection with any ThirdParty Action (as hereinafter defined). The term “Third Party Action” collectively means any legal action or other proceeding instituted by (i) a third party or parties, or (ii) a governmental body, agency or official other than the City, that: (a) challenges or contests any or all of these Conditions of Approval or any approval associated with entitlements associated with the project (collectively “Approvals”); or (b) claims or alleges a violation of CEQA or another law in connection with the Approvals by the City, or the grant, issuance or approval by the City of any or all Approvals. Applicant’s/property owner’s obligations under this paragraph shall apply regardless of whether City or any of its officers, officials, employees, consultants, agents or volunteers are actively or passively negligent, but shall not apply to any loss, liability, fines, penalties forfeitures, costs or damages caused solely by the active negligence or willful misconduct of the City or any of its officers, officials, employees, agents or volunteers. The provisions of this section shall survive any termination, revocation, overturn, or expiration of an approval.

Nothing in this section shall obligate the City to defend any claim and the City shall not be required to pay or perform any settlement arising from any such claim not defended by the City, unless the City approves the settlement in writing. Nor shall the City be prohibited from independently defending any claim, and if the City does decide to independently defend a claim, the applicant/property owner shall be responsible for City’s attorneys’ fees, expenses of litigation, and costs for that independent defense, including the costs of preparing any required administrative record. Applicant/property owner shall submit all documents filed in the Third-Party Action for review and approval of the City Attorney prior to filing of said documents on behalf of the City.

The City may, at any time, require the applicant to reimburse the City for costs that have been, or which the City reasonably anticipates will be, incurred by the City during the course of processing or defending any Third-Party Actions. The City shall provide applicant/property owner with an invoice detailing all reasonable costs

3 incurred. Applicant/property owner shall tender to the City payment-in-full of all reasonable and necessary costs within 30 days from the date upon the invoice. Applicant/property owner shall contact the City within a reasonable time to arrange any extension of the 30-day time period for payment-in-full of the invoiced amount. Applicant/property owner further acknowledges and agrees, failure to timely tender payment-in-full to the City shall be considered a breach and non-compliance with the conditions of approval for the project. Applicant/property owner shall also be required, upon request of the City, to deposit two month’s estimated costs anticipated by the City to be incurred, which may be used by the City as a draw down account to maintain a positive balance pending tender of payment by Applicant/property owner as noted herein.

2. The following Conditions of Approval supersede and replace all previous Conditions associated with Use Permit (UP) 07-13.

3. Approval of this Amended UP 07-13 shall be null and void without further action if the project has not been substantially commenced, which is defined by Municipal Code Section 8-5.7105 as the installation of building foundations, within two years of approval, or July 8, 2028. This amended project shall be limited to a single additional two-year extension.

4. The development and operation of the project shall occur consistent with the project description and approval of Amended UP 07-13 and shall comply with all CEQA mitigation measures identified in Environmental Assessment 23-13 dated March 2026.

5. The building wings visible from the north (SR 20/Colusa Ave) and west (El Margarita Rd) should be visually enhanced and reflect some of the design features of the front of the main assembly and lobby areas. These visual enhancements may include but are not limited to increased articulation, darkened window trims, vertical and horizontal lines, etc. In addition, decorative screening of the exterior HVAC systems shall be incorporated.

6. A final landscape plan to be submitted as part of the building permit application and shall include adequate provision for landscaping trees, shading percentages, planting types, and planter strips as required by the adopted City landscape standards and compliant with State Water Efficient Landscape Ordinance (WELO) requirements.

7. The applicant shall provide a revised landscaping plan to the City and approved by the Development Services Director that complies with Yuba City Municipal Code Section 8-5.6003(b)(1) including City approved shade trees along El Margarita Road, Spirit Way, and SR 20 at an average of one tree per 30 linear feet of frontage, but spaced all along the frontage, as required by Section 8-5.6004(a)(3).

8. The development, operation, and buildings shall comply with all local, state, and federal codes (including Building and Fire codes) and local development standards.

The Developer or Representative shall obtain an Encroachment Permit from the City prior to performing any work within the public rights of way.

9. The Developer shall prepare and submit improvement plans for the construction of all public improvements including water, sanitary sewer, storm drain facilities, roadway improvements, curbs, gutters, sidewalks, parkway strips, signing, striping and streetlights.

4 10. All design and construction shall conform to the latest edition of the City of Yuba City Standard Specifications and Details, State of California Standard Specifications for Construction of Local Streets and Roads (2014), AASHTO Policy on Geometric Design of Streets and Highways for local roads, and California Manual on Uniform Traffic Control Devices for Streets and Highways (2014).

11. In the event that the City is forced to condemn or acquire off-site property interest in connection with required off-site improvements, the developer shall fund the cost of condemnation or acquisition, including but not to be limited to the amounts necessary to purchase the easement or fee simple interest, document preparation, and severance or other damages payable to the owners of the land upon which the improvements are to be located, the actual cost and acquisition and all fees, including attorney’s fee and/or other expenses necessary to prosecute the condemnation action, including expert witness and appraisal fees. In the event that the City elects to proceed with acquisition or condemnation pursuant to Government Code Section 66462.5, the developer shall, within 60 days of written notice by the City, deposit with the City, as an advance, the full estimated cost of such acquisition.

12. All grading operations on the project shall be suspended as directed by the Feather River Air Quality Management District when winds exceed 20 miles per hour or when winds carry dust beyond the property line despite implementation of all feasible dust control measures. An operational water truck shall be onsite at all times to assist in dust control.

13. Onsite dirt piles or other stockpiled particulate matter shall be covered, wind breaks installed, and water and/or soil stabilizer employed to reduce windblown dust emissions. Incorporate the use of approved non-toxic soil stabilizer according to manufacturers’ specifications to all previously graded construction areas that have been inactive for 96 hours. Contractor to provide the specifications to the City Inspector.

14. To help contain fugitive dust, construction sites shall be watered down during the construction phase of the project or as directed by the Public Works Department.

15. Temporary silt fencing shall be erected during construction and permanent fencing shall be completed prior to occupancy so that transport of construction debris can be retained on-site.

16. Open burning is a source of fugitive gas and particulate emissions, which shall be prohibited at the project site. No open burning of vegetative waste (natural plant growth wastes) or other legal or illegal burn materials (trash, demolition debris, et. al.) shall be conducted at the project site. Vegetative wastes should be chipped or delivered to waste facilities (permitted biomass facilities), mulched, composted, or used for firewood. It is unlawful to haul waste materials offsite for disposal by open burning.

17. To prevent track-out, wheel washers shall be installed where project vehicles and/or equipment exit onto paved street from unpaved roads. Vehicles and/or equipment shall be washed prior to each trip. Alternatively, a gravel bed may be installed as appropriate at vehicle/equipment site exit points to effectively remove soil buildup on tires and tracks to prevent/diminish track-out.

5 18. If any hazardous waste is encountered during the construction of this project, all work shall be immediately stopped and the Sutter County Environmental Health Department, the Fire Department, the Police Department, and the City Inspector shall be notified immediately. Work shall not proceed until clearance has been issued by all of these agencies.

19. During construction, the Contractor shall be responsible for controlling noise, odors, dust and debris to minimize impacts on surrounding properties and roadways.

Contractor shall be responsible that all construction equipment is equipped with manufacturers approved muffler’s baffles. Failure to do so may result in the issuance of an order to stop work.

20. The Developer’s Superintendent/Representative shall be onsite when contractor is working and be available to the City’s Inspectors assigned to the project. The Developer shall be responsible for making sure that the contractor is working from signed improvement plans, signed special provisions, signed storm water pollution prevention plan, and the approved project agreement conditions.

21. The Developer’s Superintendent/Representative shall ensure that all private vehicles be either parked off-site or outside of construction areas. All vehicles, construction equipment, and construction material related to the project shall be organized in such a manner to provide emergency vehicle access to the entire project.

22. The Developer and/or the Developer’s Superintendent/Representative shall have a pre- construction meeting with the City prior to commencing construction of public improvements. The Developer shall notify the City of the meeting no less than two working days in advance of such meeting. Those in attendance at the meeting shall include: the City, the Developer and/or the Developer’s Superintendent/Representative, the Contractor, the Design Engineer, the Developer’s safety representative, the Developer’s SWPPP representative.

23. The improvement plans and specifications may not fully represent all necessary offsite work to meet City requirements and that any additional work identified by the City during construction shall be the responsibility of the Developer to pay for.

24. Paved streets shall be swept frequently (water sweeper with reclaimed water recommended; wet broom) if soil material has been carried onto adjacent paved, public thoroughfares from the project site.

25. The Developer, at their expense, shall be solely responsible for all quality control associated with the project. The quality control shall include, but is not limited to, the following: survey work, potholing existing utilities, all geotechnical testing, soil reports, concrete testing, asphalt testing, and any other required special testing/inspections.

The City will only perform necessary testing to assure compliance.

26. Storage of construction material is not allowed in the travel way.

27. No street parking will be permitted on either El Margarita Road or Spirit Way.

Appropriate signage shall be installed and approved by the Public Works Department.

28. This Project is currently within the X19 Combining Zone District (“Overlay District”).

You should comply with requirements of the Overlay District. In the event the City

6 Council removes the Overlay District prior to commencement of construction, this Condition of Approval shall no longer apply and be of no further force or effect.

PRIOR TO ISSUANCE OF A BUILDING PERMIT

29. Prior to building permit issuance, appropriate intersection improvements shall be constructed at the El Margarita Road/State Route 20 intersection or as approved by the City and Caltrans. The intersection improvements ultimately implemented will be determined through Caltrans Intersection Safety and Operational Assessment Process (SOAP) to be completed by the applicant or City prior to Caltrans encroachment permit issuance.

PRIOR TO ISSUANCE OF A GRADING PERMIT

30. On proposed developments that are larger than one acre, provide evidence that a Notice of Intent has been submitted and received by the local Water Quality Control Board for a General Construction Activity Storm Water Permit. Two copies of the project Storm Water Pollution Protection Plan shall be provided to the City.

31. The improvement plans for the development of the subject property shall include all measures required to ensure that no drainage runoff resulting from the development of the property flow onto the adjacent residential or agricultural lands or impede the drainage from those properties. If retaining walls are required they shall be constructed of concrete or masonry block.

32. Existing and proposed grade elevations at perimeter of the proposed land development shall be shown on the grading plans. The Engineer of Record shall designate on the plans as to where any retaining walls are required and provide details of all proposed retaining walls. The retaining wall is required where grade differences between the proposed development and the surrounding land is greater than 6” (inches). The use of any type of wood as the retaining wall is not permitted.

33. The applicant shall submit, with the first improvement plan check, to the City for review and approval, a detailed geotechnical investigation prepared by a Civil Engineer registered in the State of California and qualified to perform geotechnical work. The grading plan shall incorporate the recommendations of the approved geotechnical investigation.

34. A master grading plan for all phases of the project shall be submitted to the Public Works Department as part of the improvement plans with the first project phase.

PRIOR TO APPROVAL OF THE IMPROVEMENT PLANS

35. A fair share analysis shall be prepared by a traffic engineer. The analysis should determine fair share amounts related to mitigations in previous traffic studies as approved by the Director of the Public Works, with a focus primarily on the following intersections:
• Spirit Way and El Margarita Road
• Spirit Way and Harter Parkway
• Franklin Road and El Margarita Road

7 • Any other locations deemed appropriate by the traffic engineer or Director of Public Works.

Developer is to construct and/or pay all determined proportional share amounts of required improvements and/or fees related to mitigating identified traffic impacts that are in addition to the City’s impact fee program. This fair share contribution shall be made prior to the issuance of the first occupancy permit on site and to the satisfaction of the Director of Public Works. If the intersection is added to a future AB 1600 traffic impact fee then that would be considered payment of fair share.

36. An Improvement Agreement outlining any costs (hot tap, connection fee, fair share contribution, etc.) associated with the development shall be accepted by the City prior to approval of plans.

37. Obtain all necessary approvals from City, State, and Federal agencies, utilities and other effected parties that are required for the project including, but not limited to, the preparation of drawings, studies, reports and permit applications, and payment of fees. Prior to City approval of Improvement Plans the Developer shall provide evidence, to the satisfaction of the Public Works Department, that all such obligations have been met.

38. An encroachment permit from the State of California Department of Transportation will be required for all work to be done within any State Highway right-of-way. A copy of this permit must be supplied to the City prior to approval of the improvement plans.

39. Where an excavation for a trench and/or structure is 5 feet deep or more. The contractor shall conform to OSHA requirements. The contractor shall provide a copy of the approved OSHA permit and shoring details and calculations prepared by the California licensed structural engineer to the Public Works Department.

40. Improvement plans shall be approved by the Yuba City Fire Department.

41. All service laterals (water, sewer, irrigation, fire suppression), along with required meters, are to be shown on the civil improvement plans.

42. All domestic, landscape, and fire service lines shall have reduced pressure backflow preventers.

43. The Developer shall be responsible for preparation of a street tree and irrigation plan that is deemed acceptable by the Director of Parks and Recreation prior to entering into an Improvement Agreement with the City.

44. The fire suppression system(s) that will be servicing the property shall tie-in directly to the City water main. Hot tap fees shall apply.

45. The Developer shall construct frontage improvements to City standards as follows, or as approved by the Public Works Director:
(i) Minor Arterial (El Margarita Road) – The following shall be constructed along the east side:
• construct exclusive northbound left-turn and right-turn lanes at the State Route 20/El Margarita Road intersection.
• 12.0-foot-wide landscaped public utility easement with 2.0 feet located underneath the sidewalk (measured from back of sidewalk

8 to back of landscaping) with City approved street trees, landscaping, and irrigation
• 6.0-foot-wide attached sidewalk
• streetlights
• fire hydrants
• storm drainage facilities
• roadway striping
• roadway signage
(ii)Local (Spirit Road) – The following shall be constructed along the north side:
• 10.0-foot-wide landscaped public utility easement (measured from back of sidewalk to back of landscaping) with City approved street trees, landscaping and irrigation
• 5.0-foot-wide attached sidewalk
• streetlights
• fire hydrants
• storm drainage facilities
• roadway striping
• roadway signage
Street lighting are public improvements that shall meet the City Standard Details and be included in the Improvement Plans and Specifications for the project when the improvement plans are submitted for the first improvement plan check.

46. The Developer shall install stop signs and relabel pavement markings on El Margarita Road at Spirit Way to create an all-way stop controlled intersection or as approved by the Director of Public Works. The developer will be reimbursed for these improvements from other developers that benefit from these improvements, or shall reimburse other developers who complete these improvements.

47. The Developer shall comply with all City requirements related to drainage, including submittal of a drainage plan for any drainage improvements for the proposed development. A drainage analysis, along with calculations, shall be submitted to the City Engineer for approval. The analysis shall include, but is not limited to:
i. Grading and drainage plan showing the proposed drainage conveyance and storage system.
ii. Supporting calculations demonstrating adequacy of conveyance capacity and storage volume. The calculation analysis shall meet the requirements of the Yuba City Basin Drainage Study.
iii. Storm Drain Collection Systems- For the design of all pipeline conveyance facilities, the Hydraulic Grade Line (HGL) shall be maintained a minimum of one foot below the gutter flow line of all drain inlets and at least one foot below all maintenance hole rims during a 10-year, 24-hour storm event. The storm drain minimum pipe size shall be 12 inches. The minimum velocity shall be 2 fps.
iv. Street Flow-The street system shall be designed to convey the 100-year, 24- hour runoff while maintaining a water surface at least 1 foot below the adjacent building pad elevations (or alternatively, the building pad elevations shall be at least 1 foot above the 100-year water level). The grading plan shall ensure that the 100-year, 24-hour runoff can be conveyed through the development and to the receiving drainage facility.

9 v. Drainage systems (pipes and street systems) shall be designed to accommodate the runoff from the ultimate development of the entire upstream watershed.
vi. Water Quality – Water quality basin(s) shall meet State Water Resource Board requirements for water quality. The water quality basin can be incorporated into a detention pond, designed as an individual pond, included in a water quality manhole system, or as approved by the Director of Public Works.
vii. Detention Basins - A 100-year, 4-day storm shall be used for sizing detention storage facilities. The detention basin release rate from a 100-year, 24-hour storm after development must be equal to or lower than the runoff rate from the detention basin's tributary area before development. viii. The Drainage Study shall be completed and stamped by a Professional Engineer and determined by the City Engineer and the Sutter County Water Agency Engineer to be comprehensive, accurate, and adequate.

48. Development shall comply with Yuba City’s stormwater requirements and PostConstruction Standards Plan. The Post Construction information can be found here:
https://www.yubacity.net/city_hall/departments/public_works/engineering/stormwate r_management

49. The Developer shall comply with all Sutter County requirements related to drainage, including submittal of a drainage plan for any drainage improvements that utilize County facilities (Sutter County Water Agency) for approval by the Sutter County Development Services Director.

50. The structural section of all road improvements shall be designed using the Caltrans empirical R-value method. A geotechnical investigation shall determine the R-value of the existing soil in accordance with the Caltrans Highway Design Manual. The structural section shall be designed to the following standards:
a. Use 3” minimum for residential, 4” minimum for collectors and 6” minimum for arterials, of ‘Type A’ asphaltic concrete over Class 2 aggregate base (the thickness of the base shall be designed to the R-value of the soil) b. Use a traffic index of 6 for residential streets
c. Use a traffic index of 7 for collector streets
d. Use a traffic index of 10 for arterial streets
A copy of the geotechnical investigation, including R-value determination, test locations and structural section calculations, shall be submitted with the first improvement plan check or City standard base sections per Standard Detail ST-1 shall be used.

51. Striping, pavement markings and traffic signage shall be provided on El Margarita Road and Spirit Way as necessary and as required by the Public Works Department.

Signage restricting parking and red painted curbing shall be installed where appropriate. Speed limit signs shall be installed at locations determined by the Public Works Department.

52. Required Improvement Plan Notes:

10 a. "Any excess materials shall be considered the property of the contractor/owner and shall be disposed of away from the job site in accordance with applicable local, state and federal regulations."
b. "During construction, the Contractor shall be responsible for controlling noise, odors, dust and debris to minimize impacts on surrounding properties and roadways. The Contractor shall be responsible for all construction equipment to be equipped with manufacturers approved muffler baffles. Failure to do so may result in the issuance of an order to stop work.”
c. “If any hazardous waste is encountered during the construction of this project, all work shall be immediately stopped and the Sutter County Environmental Health Department, the Fire Department, the Police Department, and the City Inspector shall be notified immediately. Work shall not proceed until clearance has been issued by all of these agencies.”
d. "The Contractor(s) shall be required to maintain traffic flow on affected roadways during non-working hours, and to minimize traffic restriction during construction.

The Contractor shall be required to follow traffic safety measures in accordance with the “California Manual of Uniform Traffic Control Devices, latest edition.” The City of Yuba City emergency service providers shall be notified, at least two working days in advance, of proposed construction scheduled by the contractor(s).”
e. “Soil shall not be treated with lime or other cementitious material without prior express permission by the Public Works Department.”
f. “Where an excavation for a trench and/or structure is five (5) feet deep or more, the contractor shall conform to O.S.H.A. requirements. The contractor shall provide a copy of the approved O.S.H.A. permit, and shoring details and calculations prepared by California licensed structural engineer to the Public Works Department, prior to beginning construction.”

PRIOR TO ACCEPTANCE OF THE PUBLIC IMPROVEMENTS

53. All existing well(s), septic tank(s), and service lines shall be destroyed in accordance with the requirements of the Sutter County Environmental Health and Yuba City Building Departments, respectively. Connections shall be made to public sewer and water. The Developer shall pay all applicable fees.

54. The Developer shall maintain record drawings of the improvements and keep them on site at all times. When the project is complete, the Developer shall deliver a marked set of plans to the Engineer of Record. The Engineer of Record shall update the improvement plans with the record information. Once the changes have been added to the plans, the Engineer of Record shall submit both an electronic copy (Civil 3D version 2017 or newer) and a hard copy to the City. The City will not accept the completion of the improvements until the electronic copy and hard copy have been submitted.

55. The existing power pole at the southeast corner of El Margarita Road and State Route 20 shall be relocated behind the proposed sidewalk.

56. All public street lighting shall be dedicated to the City of Yuba City.

57. The driveway onto El Margarita Road shall be limited to right turns only.

11 58. The Developer’s Superintendent/Representative shall submit three (3) sets of Pacific Gas and Electric approved utility plans showing joint trench locations and distribution lines prior to issuance of first building permit for each phase of construction.

59. The Developer shall pay all applicable Sutter County Water Agency connection fees and maintenance and operation fees and entering into an agreement with Sutter County providing participation in a zone of benefit, drainage district, agency, service area or any other public entity for the financing of construction and maintenance of a drainage system, as determined applicable by Sutter County.

PRIOR TO THE ISSUANCE OF A CERTIFICATE OF OCCUPANCY

60. The curb, gutter, sidewalk, and lot drainage shall be inspected and approved by the City. Any curb, gutter and sidewalk which is not in accord with City standards or is damaged before or during construction, shall be replaced. All sidewalks along the City right-of-way shall be free of any non-control joint cracking. In addition, any concrete with cracks, chips, blemishes, and spalling greater than an inch in diameter shall be replaced from control joint to control joint.

61. The property shall petition for formation of a Zone of Benefit of the Yuba City Lighting and Landscaping Maintenance District for the purpose of maintaining; street trees which are to be planted along all streets, streetlights, fencing, and any detention / water quality basin(s) or devices. The Engineering Division shall be reimbursed actual costs associated with the formation of the district.

62. All street lighting shall be constructed per the Improvement Plans and energized prior to the issuance of any certificate of occupancy or as approved by the Development Services Director.

63. The City reserves the right to direct the Developer to hydroflush all storm drain mains and all sewer mains.

64. All reduced pressure backflow preventers shall be tested and a back flow preventer certification, performed by an AWWA licensed tester, shall be submitted to the Public Works Department

65. Prior to issuance of any certificate of occupancy, all underground utilities, public improvements, and site improvements, including rough grading, shall be completed in accordance with City requirements.

66. Development of this property will require payment of the Sutter Butte Basin Regional Levee Improvement Program Development Impact Fee (DIF) pursuant to Yuba City Ordinance No. 002-24. The DIF fees shall be paid (or an agreement entered into with Yuba City and SBFCA that constitutes satisfaction of the DIF obligation) prior to issuance of a Certificate of Occupancy. For questions pertaining to the DIF, please contact Sutter Butte Flood Control Agency at (530) 755-9859 or go to https://sutterbutteflood.org/finance/regional-levee-dif.

12 MITIGATION MEASURES
Paleontological Mitigation Measure 1: Mitigation Measure # 1 shall be placed as a note on the Demolition and Grading Plans. If paleontological resources are found, the construction manager shall halt all activity and immediately contact the Development Services Department @ 530-822-4700.

Mitigation shall be conducted as follows:

1. Identify and evaluate paleontological resources by intense field survey in the vicinity that potential paleontological resource was found, as determined by the paleontologist;

2. Assess effects on identified sites;

3. Consult with the institutional/academic paleontologists conducting research investigations within the geological formations that are slated to be impacted;

4. Obtain comments from the researchers;

5. Comply with researchers’ recommendations to address any significant adverse effects were determined by the City to be feasible.

In considering any suggested mitigation proposed by a consulting paleontologist, the City’s Community Development Department Staff shall determine whether avoidance is necessary and feasible in light of factors such as the nature of the find, project design, costs, Specific or General Plan policies and land use assumptions, and other considerations. If avoidance is unnecessary or infeasible, other appropriate measures (e.g., data recovery) shall be instituted. Work may proceed on other parts of the project site while mitigation for paleontological resources is carried out.

Greenhouse Gas Mitigation Measure 1: The site grading process shall comply with the GHG Reduction Measures provided in the adopted Yuba City Resource Efficiency Plan.

Tribal Cultural Resources Mitigation Measure 1: Unanticipated Discoveries: If any suspected TCRs are discovered during ground disturbing construction activities, all work shall cease within 100 feet of the find, or an agreed upon distance based on the project area and nature of the find. A Tribal Representative from a California Native American Tribe that is traditionally and culturally affiliated with a geographic area shall be immediately notified and shall determine if the find is a TCR (PRC 21074). The Tribal Representative will make recommendations for further evaluation and treatment as necessary.

Preservation in place is the preferred alternative under CEQA and UAIC protocols, and every effort must be made to preserve the resources in place, including through project redesign. Culturally appropriate treatment may be, but is not limited to, processing materials for reburial, minimizing handling of cultural objects, leaving objects in place within the landscape, returning objects to a location within the project area where they will not be subject to future impacts. The Tribe does not consider curation of TCR’s to be appropriate or respectful and request that materials not be permanently curated, unless approved by the Tribe.

The contractor shall implement any measures deemed by the CEQA lead agency to be necessary and feasible to preserve in place, avoid, or minimize impacts to the resource, including but limited to, facilitating the appropriate tribal treatment of the find, as necessary. Treatment that preserves or restores the cultural character and integrity of a Tribal Cultural Resource may include Tribal monitoring, culturally appropriate recovery of cultural objects, and reburial of cultural objects or cultural soil.

13 Work at the discovery location cannot resume until all necessary investigation and evaluation of the discovery under the requirements of CEQA, including AB 52, has been satisfied.

ATTACHMENT 5

To view the environmental assessment (EA 23-13) for the project, you may access it through the below link at
https://yubacity.gov/departments/development_services/plan ning/environmental/environmental_assessment/

Agenda Item 23

CITY OF YUBA CITY

STAFF REPORT
Date: August 18, 2026
To: Honorable Mayor & Members of the City Council;
From: Utilities Department
Presentation By: Phil Marler, Utilities Director
Summary
Subject: WWTF Outfall Diffuser Relocation Project – Resolution Authorizing Execution of Final Form of Agreement
Recommendation: Adopt a Resolution approving the final form of the Agreement with the State Water Resources Control Board’s Clean Water State Revolving Fund Loan Program for the WWTF Effluent Outfall Diffuser Relocation Project and authorizing execution and delivery thereof
Fiscal Impact: $67,773,328 – Repayment will be made using the net revenues of the City’s wastewater fund and no other City funds over a 30-year period Purpose:

To execute the final form of the agreement needed for the low-interest borrowing offered by the State Water Resources Control Board’s Clean Water State Revolving Fund Loan Program for construction of the WWTF Effluent Outfall Diffuser Relocation Project (Project).

Strategic Focus Area:

This item addresses Council’s strategic focus area of Fiscal Responsibility and Infrastructure by providing cost-effective funding to restore the Wastewater Treatment Facility’s primary effluent discharge point and comply with the City’s NPDES permit for safe treatment and disposal of wastewater.

Background:

The City of Yuba City Wastewater Treatment Facility (WWTF) treats wastewater from the City’s collection system and disposes of the treated effluent. Operation of the WWTF and discharge of treated effluent to the Feather River is regulated by the Central Valley Regional Water Quality Control Board (CVRWQCB) through Waste Discharge Order No. R5-2024-0055 and National Pollutant Discharge Elimination System (NPDES) Permit No. CA0079260.

Historically, the primary disposal of treated effluent was discharge directly into the Feather River via an outfall diffuser pipe known as Point 001, located upstream of Shanghai Falls. The collapse of Shanghai Falls in 2011 and further riverbed changes from the 2017 Feather River high-water event related to the Oroville Dam have rendered the existing outfall diffuser unable to meet permit requirements for sufficient submersion. The CVRWQCB has subsequently required that the City relocate its discharge

site in the Feather River and restore Point 001 with a new permanent outfall diffuser pipeline as part of its NPDES permit requirements.

Staff has attempted to identify and secure multiple funding opportunities in order to offset the significant capital cost of the Project, including the State Water Resources Control Board (SWRCB) Clean Water State Revolving Fund (SRF), which provides grant and low-interest loan funding to local public agencies for water and wastewater infrastructure projects. Council adopted Resolutions in 2022 authorizing City staff to apply for the SRF financing and declaring the City’s intention to spend monies on the Project prior to the approval of a final agreement with the SWRCB.

In 2023, the State placed the City of Yuba City’s project on the SRF’s eligibility list for an award of a $35 million loan for the City to construct the proposed pipeline and diffuser project. In 2025, cost projections following the completion of Project design were revised upward to $61.8 million, and City staff worked with SWRCB to increase the requested loan amount to a maximum of $50.0 million.

SWRCB analyzed the City’s wastewater enterprise fund finances and moved forward with the proposed SRF loan preparation contingent upon a successful Proposition 218 process and adoption of the City’s proposed wastewater service rates from the 2026 Utilities Rate Studies. City Council completed the adoption of the necessary fee schedules on July 7, 2026.

Analysis:

The SWRCB has prepared a draft, substantially complete form of the Construction Installment Sale Agreement (Agreement) for the $50.0 million loan, with the good-faith estimates described in the Fiscal Impact section below, which is attached to the Resolution as Exhibit 1A. In order to execute the Agreement and move forward with the loan, City Council will need to adopt a Resolution to designate the City Manager and the Public Works Director as Authorized Representatives in order to sign all necessary documents (Attachment 1). The material terms of the Agreement have been reviewed by the City Attorney’s office, municipal financial advisor, and bond counsel, and minor revisions have been submitted to the SWRCB to finalize the Agreement.

The adopted wastewater rate schedule includes the debt service capacity to utilize revenue bonds for the estimated Project funding gap of $11.8 million, though staff will continue to pursue alternative grant and low-interest loan opportunities to reduce the financial impact of the Project.

Fiscal Impact:

In accordance with Government Code Section 5852.1, the following good-faith estimates have been prepared by the City’s municipal advisor, NHA Advisors LLC, related to the Construction Installment Sale Agreement with the SWRCB:

1. True Interest Cost of the SRF Loan (Estimated): 2.20%.

2. Finance charge of the SRF Loan, being the sum of all fees and charges paid to third parties, in the amount of approximately $55,000. Such amount consists of financial advisory fees, legal consultation fees, State of California filing fees, and other fees and issuance costs for the SRF Loan.

3. Proceeds of the SRF Loan expected to be received by the City, net of proceeds for Costs of Issuance in (2) above to paid, capitalized interest and reserves (if any) from the principal amount of the Loan (Estimated): $50,000,000.

4. Total Payment Amount for the SRF Loan, being the sum of all debt service to be paid on the SRF Loan to final maturity (Estimated): $67,773,328.

All amounts and percentages are estimates and are made in good faith by the City based on information available as of July 2026. Estimates include certain assumptions regarding SRF Loan interest rates and issuance costs.

Repayment will begin in Fiscal Year 29/30, one (1) year after completion of Project construction.

Funding for the annual debt service has been programmed into the wastewater service rates for Fiscal Years 29/30 and 30/31 approved by Council on June 16 and July 7, 2026.

Alternatives:

Do not adopt the recommended Resolution and direct staff to pursue other means of financing the Project.

Recommendation:

Adopt a Resolution approving the final form of the Agreement with the State Water Resources Control Board’s Clean Water State Revolving Fund Loan Program for the WWTF Effluent Outfall Diffuser Relocation Project and authorizing execution and delivery thereof.

Attachments:

1. Attachment 1 - Closing Resolution Outfall Diffuser SRF

2. Exhibit 1A - Outfall Diffuser DRAFT Construction Sale Agreement Prepared By: Submitted By:

Scarlett O. Harris
Utilities Administrative Manager
Robert Bendorf
City Manager

ATTACHMENT 1

RESOLUTION NO. 26-___

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF YUBA CITY

AUTHORIZING THE EXECUTION AND DELIVERY OF A CONSTRUCTION

INSTALLMENT SALE AGREEMENT WITH THE STATE WATER RESOURCES

CONTROL BOARD
WHEREAS, the City of Yuba City (City) owns and operates a system for the collection, treatment, and disposal of wastewater within the service area of the City (Wastewater System); and WHEREAS, the City plans to make certain capital improvements to the Wastewater System, known as the Wastewater Treatment Facility Effluent Outfall and Diffuser Relocation Project (Project); and
WHEREAS, the City Council previously adopted Resolutions authorizing City staff to apply for the State Water Resources Control Board’s Clean Water State Refunding Fund (CWSRF) financing, and declaring the City’s intention to spend monies on the Project prior to the approval of a final agreement with the State Water Resources Control Board, preserving the City’s ability to be reimbursed for monies expended prior to agreement execution; and WHEREAS, the State Water Resources Control Board has provided the City a substantially complete draft form of the Construction Installment Sale Agreement required to implement the proposed CWSRF financing, and the City Council at this time wishes to approve the execution and delivery of the Construction Installment Sale Agreement, upon the approval as to form by the City Attorney (Exhibit 1A); and
WHEREAS, the good-faith estimates required by Section 5852.1 of the California Government Code related to the Construction Installment Sale Agreement are set forth in the staff report accompanying this Resolution and are incorporated herein by reference.

NOW, THEREFORE, be it resolved and ordered by the City Council of the City of Yuba City as follows:

Section 1. The recitals in this Resolution are true and correct and this City Council so finds, determines, and represents.

Section 2. The City Manager and the Public Works Director (each, an “Authorized Representative”) is authorized to execute and deliver the Construction Installment Sale Agreement with the State Water Resources Control Board, in substantially the form on file with the City Clerk, including such changes as the Authorized Representative may require and as approved by the City Attorney and Jones Hall LLP, as bond counsel to the City, with such approval to be conclusively evidenced by the execution and delivery thereof.

The City’s payment obligations under the Construction Installment Sale Agreement shall be payable from, and secured by, a pledge of the net revenues of the Wastewater System and be subject to the other terms and conditions described therein.

Section 3. The City Council finds and determines that the Construction Installment Sale Agreement complies with the City’s debt management policy, the prior Resolutions of the City Council adopted with respect to the contemplated financing, and to the extent of any inconsistency, the Construction Installment Sale Agreement, as executed and delivered, shall control, and be valid and enforceable against the City in accordance with its terms.

In addition to the Construction Installment Sale Agreement, each Authorized Representative, or his/her designee, is authorized to execute and deliver any other necessary documents, assurances, certifications, and agreements related thereto.

Section 4. Each Authorized Representative, or his/her designee, is designated to represent the City in carrying out the City’s responsibilities under the Construction Installment Sale Agreement, including certifying disbursement requests on behalf of the City and compliance with applicable state and federal laws The foregoing Resolution was duly and regularly introduced, passed, and adopted by the City Council of the City of Yuba City at a regular meeting thereof held on the 18th day of August, 2026.

AYES:

NOES:

ABSENT:

Marc Boomgaarden, Mayor
ATTEST:

Ciara Wakefield, City Clerk

APPROVED AS TO FORM
COUNSEL FOR YUBA CITY:

Shannon Chaffin, City Attorney
Aleshire & Wynder, LLP
Exhibits:

1. DRAFT Construction Installment Sale Agreement

EXHIBIT 1A

State Water Resources Control Board
July 17, 2026
City of Yuba City
Attn: Josh Wolffe – Director of Public Works
1201 Civic Center Blvd
Yuba City, CA 95993
Agreement Number: D2501020
Project Number: C-06-8682-110
Please review, and if appropriate, electronically sign the signature page of the Agreement via Adobe Sign no later than thirty (30) calendar days from the date of this letter. Once electronically signed, the Agreement will be routed automatically to the next signer. You will automatically receive a copy of the fully executed Agreement via Adobe Sign once the final signer has signed. This Agreement cannot be considered binding by either party until executed by the State Water Resources Control Board (State Water Board).

For the Funding Agreement to be executed by the State Water Board, the following items must also be returned electronically with the signed signature pages: The Opinion will need to be dated and signed on or after the date the agreement is signed. Counsel can file and attach the letters and submit them back to Adobe.

1. Opinion of General Counsel.

2. Bond Counsel Letter.

3. Closing Resolution.

If you have questions about the General Counsel Opinion Letter, Bond Counsel Letter, and Closing Resolution, please contact Noel Carolipio Jr., at (916) 449-5694 or email at [email protected]
Except for letterhead, date, and signature, opinions of counsel must be identical to the form of opinion attached to this submittal in order for timely execution and for the opinion cost to be reimbursable. For questions regarding General Counsel Opinion Letter, Bond Counsel Letter, and Closing Resolution please contact your Agreement Analyst.

Please note that all projects receiving funding must comply with all applicable implementing guidelines and regulations adopted by the California Department of Industrial Relations (DIR), regarding state prevailing wage requirements. You must contact DIR for guidance on how to comply. Information can be found at: http://www.dir.ca.gov/lcp.asp.

Additional Compliance Requirements:

Davis Bacon Compliance:
https://www.waterboards.ca.gov/water_issues/programs/grants_loans/srf/davisbacon.shtml

City of Yuba City - 2 - 07/17/2026
Disadvantaged Business Enterprise (DBE)
https://www.waterboards.ca.gov/water_issues/programs/grants_loans/srf/docs/policy0513/dbe_complianc e_guidelines_instructions.pdf
CWSRF
We strive to provide superior service to our recipients and would appreciate your feedback on the application process. Please assist us in completing a 5-minute Customer Satisfaction Survey at https://www.surveymonkey.com/s/CWSRFSatisfaction so we can continue to improve on our service and process. Your comments are valuable to the success of the CWSRF Program. Thank you for your time and we look forward to continuing to work with you.

Mr. Carolipio Jr. may be contacted at (916) 449-5694 or [email protected] Enclosures

Documents Transmitted back to Adobe by the Recipient:

Steps:

1. Once the Adobe notification has been received, the Recipient will open Adobe. The Recipient must checkmark the box to agree to the Consumer Disclosure. Click on [Accept]

2. The Recipient will need to download the (PDF) documents by selecting the corresponding radio button. Ensure to save the documents to the desired location.

3. Once you have saved the documents to the desired location, the Recipient will proceed with generating the required closing documents. For the documents to be edited, you must save your file in Word format. Click on [File-Export To-Microsoft Word – Word Document]

4. Once the Recipient has completed the closing documents, the file must be saved as “Adobe PDF” for their respective digital signatures to be entered.

5. The Recipient will select [Certificates] from the tools field and using your mouse, click and drag to draw the area where you would like the signature to appear. A dialogue message box will display your Digital ID press [Continue] and click on [Sign]. [Save]

6. The Recipient will attach the signed documents to Adobe by clicking the [Click to Attachment] and downloading the signed document(s).

7. Once the closing document(s) have been attached, the Recipient will click on the [Click to Sign] button.

CLEAN WATER

CITY OF YUBA CITY
AND

CALIFORNIA STATE WATER RESOURCES CONTROL BOARD

CONSTRUCTION

INSTALLMENT SALE AGREEMENT
PROJECT NO. C-06-8682-110 and WASTEWATER TREATMENT FACILITY OUTFALL AND DIFFUSER

PROJECT
AGREEMENT NO. D2501020
PROJECT FUNDING AMOUNT: $50,000,000
ESTIMATED REASONABLE PROJECT COST: $61,800,000
ELIGIBLE WORK START DATE: JANUARY 1, 2026
ELIGIBLE CONSTRUCTION START DATE: FEBRUARY 3, 2026
COMPLETION OF CONSTRUCTION DATE: JULY 31, 2029
PAYMENT START DATE: JULY 31, 2030
FINAL REIMBURSEMENT REQUEST DATE: JANUARY 31, 2030
FINAL PAYMENT DATE: JULY 31, 2059
RECORDS RETENTION END DATE: JULY 31, 2065
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THIS PAGE INTENTIONALLY LEFT BLANK

City of Yuba City
Agreement No.: D2501020
Project No.: C-06-8682-110
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TABLE OF CONTENTS
AGREEMENT ............................................................................................................................................... 1

1. AUTHORITY....................................................................................................................................... 1

2. INTENTION. ....................................................................................................................................... 1

3. AGREEMENT, TERM, DOCUMENTS INCORPORATED BY REFERENCE....................................1

4. PARTY CONTACTS........................................................................................................................... 3

5. DEFINITIONS..................................................................................................................................... 3 EXHIBIT A – SCOPE OF WORK................................................................................................................11 A.1. PROJECT DESCRIPTION, USEFUL LIFE, AND SCOPE OF WORK.........................................11 A.2. STANDARD PROJECT REQUIREMENTS......................................................................................11 A.2.1 Acknowledgements...................................................................................................................11 A.2.2 Reports......................................................................................................................................11 A.2.2.1 Progress Reports...............................................................................................................11 A.2.2.2 Project Completion Report.................................................................................................12 A.2.2.3 As Needed Reports. ..........................................................................................................12 A.2.2.5 [Reserved.].........................................................................................................................12 A.2.3 Signage. ....................................................................................................................................12 A.2.4 Commencement of Operations.................................................................................................13 A.3 DATES & DELIVERABLES..............................................................................................................13 A.4 SCHEDULE......................................................................................................................................14 EXHIBIT B – FUNDING TERMS.................................................................................................................15 B.1. FUNDING AMOUNTS AND REIMBURSEMENTS ......................................................................15 B.1.1 Funding Contingency and Other Sources.................................................................................15 B.1.2 Estimated Reasonable Cost. ....................................................................................................15 B.1.3 Project Funding Amount. ..........................................................................................................15 B.1.4 [Reserved.]................................................................................................................................15 B.1.5 Budget Costs.............................................................................................................................15 B.1.6 Contingent Disbursement. ........................................................................................................16 B.1.7 Reimbursement Procedure. ......................................................................................................16 B.1.8 Withholding of Disbursements. .................................................................................................17 B.1.9 Fraud and Misuse of Public Funds; Enforcement.....................................................................18 B.2 RECIPIENT’S PAYMENT OBLIGATION, PLEDGE, AND RESERVE.............................................18 B.2.1 Project Costs.............................................................................................................................18 B.2.2 Estimated Principal Payment Due. ...........................................................................................19 B.2.3 Interest Rate and In-Lieu of Interest Charges...........................................................................19 B.2.4 [Reserved.]................................................................................................................................19 B.2.5 Obligation Absolute...................................................................................................................19 B.2.6 Payment Timing. .......................................................................................................................19

City of Yuba City
Agreement No.: D2501020
Project No.: C-06-8682-110
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B.2.7 Pledged Revenues....................................................................................................................20 B.2.7.1 Establishment of Enterprise Fund and Reserve Fund. .........................................................20 B.2.7.2 Pledge of Net Revenues, Enterprise Fund, and Reserve Fund............................................20 B.2.7.3 Application and Purpose of the Enterprise Fund...................................................................21 B.2.8 No Prepayment. ........................................................................................................................21 B.2.9 Reserve Fund............................................................................................................................21 B.3 RATES, FEES AND CHARGES. .....................................................................................................21 B.4 ADDITIONAL DEBT. ........................................................................................................................22 B.5 NO LIENS.........................................................................................................................................22 EXHIBIT C – GENERAL & PROGRAMMATIC TERMS & CONDITIONS..................................................23 C.1 REPRESENTATIONS & WARRANTIES......................................................................................23 C.1.1 Application and General Recipient Commitments. ...................................................................23 C.1.2 Authorization and Validity. ........................................................................................................23 C.1.3 No Violations.............................................................................................................................23 C.1.4 No Litigation. .............................................................................................................................23 C.1.5 Property Rights. ........................................................................................................................23 C.1.6 Solvency and Insurance............................................................................................................24 C.1.7 Legal Status and Eligibility. .......................................................................................................24 C.1.8 Financial Statements and Continuing Disclosure. ....................................................................24 C.1.9 System Obligations ...................................................................................................................24 C.1.10 No Other Material Obligations...................................................................................................24 C.1.11 Compliance with State Water Board Funding Agreements. .....................................................24 C.2 DEFAULTS AND REMEDIES ......................................................................................................25 C.2.1 Return of Funds; Acceleration; and Additional Payments. .......................................................25 C.2.2 [Reserved.]................................................................................................................................25 C.2.3 Administrative remedies............................................................................................................25 C.2.4 Judicial remedies. .....................................................................................................................25 C.2.5 Termination. ..............................................................................................................................26 C.2.6 Damages for Breach of Tax-Exempt Status. ............................................................................26 C.2.7 Damages for Breach of Federal Conditions..............................................................................26 C.2.8 Remedies and Limitations.........................................................................................................26 C.2.9 Non-Waiver. ..............................................................................................................................26 C.2.10 Status Quo. ...............................................................................................................................26 C.3 STANDARD CONDITIONS..................................................................................................................27 C.3.1 Access, Inspection, and Public Records...................................................................................27 C.3.2 Accounting and Auditing Standards; Financial Management Systems; Records Retention. ...27 C.3.3 Amendment...............................................................................................................................28 C.3.4 Assignability. .............................................................................................................................28 C.3.5 Audit. .........................................................................................................................................28 C.3.6 Bonding. ....................................................................................................................................28 C.3.7 Competitive Bidding ..................................................................................................................28 C.3.8 Compliance with Applicable Laws, Rules, and Requirements..................................................29 C.3.9 Computer Software. ..................................................................................................................29 C.3.10 Conflict of Interest. ....................................................................................................................29 C.3.11 Continuous Use of Project; No Lease, Sale, Transfer of Ownership, or Disposal of Project. ..29 C.3.12 Data Management. ...................................................................................................................29 C.3.13 Disputes. ...................................................................................................................................29 C.3.14 [Reserved.]................................................................................................................................30

City of Yuba City
Agreement No.: D2501020
Project No.: C-06-8682-110
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iii
C.3.15 Environmental Clearance..........................................................................................................30 C.3.16 Governing Law..........................................................................................................................30 C.3.17 Income Restrictions. .................................................................................................................30 C.3.18 Indemnification and State Reviews...........................................................................................30 C.3.19 Independent Actor.....................................................................................................................31 C.3.20 Integration. ................................................................................................................................31 C.3.21 Leveraging Covenants. .............................................................................................................31 C.3.22 No Discrimination......................................................................................................................31 C.3.23 No Third Party Rights................................................................................................................32 C.3.24 No Obligation of the State.........................................................................................................32 C.3.25 Notice. .......................................................................................................................................32 C.3.26 Operation and Maintenance; Insurance....................................................................................35 C.3.27 Permits, Subcontracting, and Remedies. .................................................................................35 C.3.28 Professionals.............................................................................................................................36 C.3.29 Prevailing Wages. .....................................................................................................................36 C.3.30 Public Funding. .........................................................................................................................36 C.3.31 Recipient’s Responsibility for Work...........................................................................................36 C.3.32 Records Retention. ...................................................................................................................36 C.3.33 Related Litigation. .....................................................................................................................37 C.3.34 Rights in Data............................................................................................................................37 C.3.35 State Water Board Action; Costs and Attorney Fees................................................................37 C.3.36 Timeliness.................................................................................................................................37 C.3.37 Unenforceable Provision...........................................................................................................37 C.3.38 Venue........................................................................................................................................38 C.3.39 Waiver and Rights of the State Water Board............................................................................38 C.4 MISCELLANEOUS STATE AND FEDERAL REQUIREMENTS..........................................................38 C.4.1 [Reserved.]................................................................................................................................38 C.4.2 State Cross-Cutters. .................................................................................................................38 C.4.3 Federal Requirements and Cross-Cutters for SRF Funding. ...................................................39 EXHIBIT D – SPECIAL CONDITIONS........................................................................................................44 D.1 ENVIRONMENTAL SPECIAL CONDITIONS...............................................................................44 D.2 TECHNICAL SPECIAL CONDITIONS .........................................................................................44 EXHIBIT E – PAYMENT SCHEDULE.........................................................................................................46 EXHIBIT F – TAX CERTIFICATE ...............................................................................................................47 F.1 Purpose. ...........................................................................................................................................47 F.2 Tax Covenant. ..................................................................................................................................47 F.3 Governmental Unit. ..........................................................................................................................47 F.4 Financing of a Capital Project. .........................................................................................................47 F.5 Ownership and Operation of Project................................................................................................47 F.6 Temporary Period.............................................................................................................................47 F.7 Working Capital. ...............................................................................................................................48 F.8 Expenditure of Proceeds..................................................................................................................48

City of Yuba City
Agreement No.: D2501020
Project No.: C-06-8682-110
Page iv of iv
iv
F.9 Private Use and Private Payments. .................................................................................................48 F.10 No Sale, Lease or Private Operation of the Project. ....................................................................48 F.11 No Disproportionate or Unrelated Use. ........................................................................................49 F.12 Management and Service Contracts. ...........................................................................................49 F.13 No Disposition of Financed Property............................................................................................49 F.14 Useful Life of Project.....................................................................................................................49 F.15 Payments......................................................................................................................................49 F.16 No Other Replacement Proceeds.................................................................................................50 F.17 No Sinking or Pledged Fund.........................................................................................................50 F.18 Reserve Amount...........................................................................................................................50 F.19 Reimbursement Resolution. .........................................................................................................50 F.20 Reimbursement Expenditures. .....................................................................................................50 F.21 Change in Use of the Project........................................................................................................51 F.22 Rebate Obligations. ......................................................................................................................51 F.23 No Federal Guarantee..................................................................................................................51 F.24 Amendments.................................................................................................................................51 F.25 Reasonable Expectations.............................................................................................................51 F.26 Assignment. ..................................................................................................................................51

City of Yuba City
Agreement No.: D2501020
Project No.: C-06-8682-110

SRF 02vi2025

AGREEMENT

1. AUTHORITY.
(a) The State Water Resources Control Board (State Water Board) is authorized, and implements its authority, to provide financial assistance under this Agreement pursuant to Section 13475 et seq. of the Water Code, and Resolution Nos. 2025-0013 and 2025-0022. (b) The Recipient is authorized to enter into this Installment Sale Agreement (Agreement) pursuant to Resolution No. 22-146.

2. INTENTION.
(a) The Recipient desires to receive financial assistance for and undertake work required for the wastewater construction Project according to the terms and conditions set forth in this Agreement. (b) The State Water Board proposes to assist in providing financial assistance for eligible costs of the Project in the amount set forth in Exhibit B, according to the terms and conditions set forth in this Agreement, with the expectation that the Recipient shall repay all of the financial assistance to the State Water Board.
(c) The Recipient intends to evidence its obligation to submit Payments to the State Water Board and secure its obligation with Net Revenues of its wastewater enterprise, as set forth in Exhibit B, according to the terms and conditions set forth in this Agreement.
(d) The Recipient intends to certify and evidence its compliance with the Tax Covenants set forth in Exhibit F.

3. AGREEMENT, TERM, DOCUMENTS INCORPORATED BY REFERENCE.

In consideration of the mutual representations, covenants and agreements herein set forth, the State Water Board and the Recipient, each binding itself, its successors and assigns, do mutually promise, covenant, and agree to the terms, provisions, and conditions of this Agreement. (a) The Recipient hereby sells to the State Water Board and the State Water Board hereby purchases from the Recipient the Project. Simultaneously therewith, the Recipient hereby purchases from the State Water Board, and the State Water Board hereby sells to the Recipient, the Project in accordance with the provisions of this Agreement. All right, title, and interest in the Project shall immediately vest in the Recipient on the date of execution and delivery of this Agreement by both parties without further action on the part of the Recipient or the State Water Board. (b) Subject to the satisfaction of all conditions precedent to this Agreement, this Agreement shall become effective upon the signature of both the Recipient and the State Water Board. Conditions precedent are not limited to the following:
i. The Recipient must deliver to the Division a resolution authorizing this Agreement. ii. The Recipient must deliver an opinion of bond counsel and general counsel satisfactory to the State Water Board’s counsel dated on or after the date that the Recipient signs this Agreement.
(c) Upon execution, the term of the Agreement shall begin on the Eligible Work Start Date and extend through the Final Payment Date.
(d) This Agreement includes the following exhibits and attachments thereto:

City of Yuba City
Agreement No.: D2501020
Project No.: C-06-8682-110

SRF 02vi2025
i. EXHIBIT A – SCOPE OF WORK
ii. EXHIBIT B – FUNDING TERMS
iii. EXHIBIT C – GENERAL & PROGRAMMATIC TERMS & CONDITIONS iv. EXHIBIT D – SPECIAL CONDITIONS
v. EXHIBIT E – PAYMENT SCHEDULE
vi. EXHIBIT F – TAX CERTIFICATE
(e) This Agreement includes the following documents incorporated by reference, as well as any documents incorporated by reference in Exhibit D:
i. the Final Plans & Specifications, which are the basis for the construction contract to be awarded by the Recipient, including any changes approved by the Division; ii. the Waste Discharge Requirement Order No. R5-2024-0055_________ and National Pollutant Discharge Elimination System Permit No. CA0079260, and any amendments thereto;
iii. the Recipient’s Reimbursement Resolution No. 26-021 dated February 17, 2026; iv. the Recipient’s Tax Questionnaire dated November 20, 2025. v. the federal Davis-Bacon requirements. By accepting this Agreement, the Recipient acknowledges and agrees to the terms and conditions provided in the DBRA Requirements for EPA Subrecipients | US EPA (https://www.epa.gov/grants/dbrarequirements-epa-subrecipients). The Recipient shall ensure that the following language is included in all contracts and subcontracts funded under this Agreement:

By accepting this contract, the contractor acknowledges and agrees to the terms and conditions provided in the Contract Provisions for Davis-Bacon and Related Acts | US EPA (https://www.epa.gov/grants/contract-provisions-davis-bacon-and-related-acts). (For reference, see also
https://www.waterboards.ca.gov/water_issues/programs/grants_loans/srf/davisbacon.ht ml.)
(f) This Agreement, and any amendments hereto, may be executed and delivered in any number of counterparts, each of which when delivered shall be deemed to be an original, but such counterparts shall together constitute one document. The parties may sign this Agreement, and any amendments hereto, either by an electronic signature using a method approved by the State Water Board or by a physical, handwritten signature. The parties mutually agree that an electronic signature using a method approved by the State Water Board is the same as a physical, handwritten signature for the purposes of validity, enforceability, and admissibility.

City of Yuba City
Agreement No.: D2501020
Project No.: C-06-8682-110

SRF 02vi2025

4. PARTY CONTACTS
State Water Board City of Yuba City
Section: Division of Financial Assistance
Name: Elisabeth Brown, Project Manager Name: Josh Wolffe, Director of Public Works
Address: 1001 I Street,16th Floor Address: 1201 Civic Center Boulevard
City, State,
Zip:

Sacramento, CA 95814 City, State, Zip: Yuba City, CA 95993 Phone: (916) 341-5375 Phone: (530) 822-3288
Email: [email protected] Email: [email protected] The Recipient may change its contact upon written notice to the Division, which notice shall be accompanied by authorization from the Recipient’s Authorized Representative. The State Water Board will notify the Recipient of any changes to its contact.

While the foregoing are contacts for day-to-day communications regarding Project work, the Recipient shall provide official communications and events of Notice as set forth in Exhibit C to the Division’s Deputy Director.

5. DEFINITIONS.

Unless otherwise specified, each capitalized term used in this Agreement has the following meaning:
“Additional Payments" means the reasonable extraordinary fees and expenses of the State Water Board, and of any assignee of the State Water Board's right, title, and interest in and to this Agreement, in connection with this Agreement, including all expenses and fees of accountants, trustees, staff, contractors, consultants, costs, insurance premiums and all other extraordinary costs reasonably incurred by the State Water Board or assignee of the State Water Board. "Allowance" means an amount based on a percentage of the accepted bid for an eligible project to help defray the planning, design, and construction engineering and administration costs of the Project. “Agreement” means this agreement, including all exhibits and attachments hereto. "Authorized Representative" means the duly appointed representative of the Recipient as set forth in the certified original of the Recipient’s authorizing resolution that designates the authorized representative by title.
"Bank" means the California Infrastructure and Economic Development Bank. “Bond Funded Portion of the Project Funds” means any portion of the Project Funds which was or will be funded with Bond Proceeds.
“Bond Proceeds” means original proceeds, investment proceeds, and replacement proceeds of Bonds. "Bonds" means any series of bonds issued by the Bank, the interest on which is excluded from gross income for federal tax purposes, all or a portion of the proceeds of which have been, are, or will be applied by the State Water Board to fund all or any portion of the Project Costs or that are secured in whole or in part by Payments paid hereunder.

City of Yuba City
Agreement No.: D2501020
Project No.: C-06-8682-110

SRF 02vi2025
“Charge In Lieu of Interest” means any fee or charge in lieu of some or all of, but not to exceed, the interest that would otherwise be owed under this Agreement, as set forth in Exhibit E. "Code" as used in Exhibit F of this Agreement means the Internal Revenue Code of 1986, as amended, and any successor provisions and the regulations of the U.S. Department of the Treasury promulgated thereunder.
"Completion of Construction" means the date, as determined by the Division after consultation with the Recipient, that the work of building and erection of the Project is substantially complete, and is identified in Exhibit A of this Agreement.
“Construction Period Interest” (CPI) means interest that accrues on disbursed Project Funds prior to Completion of Construction. Construction Period Interest is capitalized at Completion of Construction. “Cover Page” means the front page of this Agreement.
“Days” means calendar days unless otherwise expressly indicated. “Debt Service” means, as of any date, with respect to outstanding System Obligations and, in the case of the additional debt tests in Exhibit B of this Agreement, any System Obligations that are proposed to be outstanding, the aggregate amount of principal and interest scheduled to become due (either at maturity or by mandatory redemption), together with any Charge In Lieu of Interest on this Obligation or other System Obligations to the State Water Board, calculated with the following assumptions:
a. Principal payments (unless a different subdivision of this definition applies for purposes of determining principal maturities or amortization) are made in accordance with any amortization schedule published for such principal, including any minimum sinking fund payments; b. Interest on a variable rate System Obligation that is not subject to a swap agreement and that is issued or will be issued as a tax-exempt obligation under federal law, is the average of the SIFMA Municipal Swap Index, or its successor index, during the 24 months preceding the date of such calculation;
c. Interest on a variable rate System Obligation that is not subject to a swap agreement and that is issued or will be issued as a taxable obligation under federal law, is the average of SOFR, or its successor index, during the 24 months preceding the date of such calculation; d. Interest on a variable rate System Obligation that is subject to a swap agreement is the fixed swap rate or cap strike rate, as appropriate, if the variable rate has been swapped to a fixed rate or capped pursuant to an interest rate cap agreement or similar agreement; e. Interest on a fixed rate System Obligation that is subject to a swap agreement such that all or a portion of the interest has been swapped to a variable rate shall be treated as variable rate debt under subdivisions (b) or (c) of this definition of Debt Service; f. Payments of principal and interest on a System Obligation are excluded from the calculation of Debt Service to the extent such payments are to be paid from amounts then currently on deposit with a trustee or other fiduciary and restricted for the defeasance of such System Obligations; g. If 25% or more of the principal of a System Obligation is not due until its final stated maturity, then principal and interest on that System Obligation may be projected to amortize over the lesser of 30 years or the Useful Life of the financed asset, and interest may be calculated according to subdivisions (b)-(e) of this definition of Debt Service, as appropriate.

City of Yuba City
Agreement No.: D2501020
Project No.: C-06-8682-110

SRF 02vi2025
“Deputy Director” means the Deputy Director of the Division. "Division" means the Division of Financial Assistance of the State Water Board or any other segment of the State Water Board authorized to administer this Agreement. “Eligible Construction Start Date” means the date set forth on the Cover Page of this Agreement, establishing the date on or after which construction costs may be incurred and eligible for reimbursement hereunder.
“Eligible Work Start Date” means the date set forth on the Cover Page of this Agreement, establishing the date on or after which any non-construction costs may be incurred and eligible for reimbursement hereunder.
“Enterprise Fund” means the enterprise fund of the Recipient in which Revenues are deposited. “Event of Default” means the occurrence of any of the following events:
a) Failure by the Recipient to make any payment required to be paid pursuant to this Agreement, including Payments;
b) A representation or warranty made by or on behalf of the Recipient in this Agreement or in any document furnished by or on behalf of the Recipient to the State Water Board pursuant to this Agreement shall prove to have been inaccurate, misleading or incomplete in any material respect; c) A material adverse change in the condition of the Recipient, the Revenues, or the System, which the Division reasonably determines would materially impair the Recipient’s ability to satisfy its obligations under this Agreement.
d) Failure by the Recipient to comply with the additional debt test or reserve fund requirement, if any, in Exhibit B or Exhibit D of this Agreement;
e) Failure to operate the System or the Project without the Division’s approval; f) Failure by the Recipient to observe and perform any covenant, condition, or provision in this Agreement, which failure shall continue for a period of time, to be determined by the Division; g) The occurrence of a material breach or event of default under any System Obligation or Material Obligation that results in the acceleration of principal or interest or otherwise requires immediate prepayment, repurchase or redemption;
h) Initiation of proceedings seeking arrangement, reorganization, or any other relief under any applicable bankruptcy, insolvency, or other similar law; the appointment of or taking possession of the Recipient’s property by a receiver, liquidator, assignee, trustee, custodian, conservator, or similar official; the Recipient’s entering into a general assignment for the benefit of creditors; the initiation of resolutions or proceedings to terminate the Recipient’s existence, or any action in furtherance of any of the foregoing; i) A determination pursuant to Gov. Code section 11137 that the Recipient has violated any provision in Article 9.5 of Chapter 1 of Part 1 of Division 3 of Title 2 of the Government Code; or j) Loss of the Recipient’s rights, licenses, permits, or privileges necessary for the operation of the System or the Project, or the occurrence of any material restraint on the Recipient’s enterprise by a government agency or court order.
“Final Budget Approval (FBA)” means the Division’s written approval of the final budget for the Project or a phase of the Project.
“Final Payment Date” is the date by which all principal and accrued interest due under this Agreement is to be paid in full to the State Water Board and is specified on the Cover Page of this Agreement. “Final Reimbursement Request Date” means the date set forth as such on the Cover Page of this Agreement, after which date, no further Project Funds disbursements may be requested.

City of Yuba City
Agreement No.: D2501020
Project No.: C-06-8682-110

SRF 02vi2025
"Fiscal Year" means the period of twelve (12) months terminating on June 30 of any year, or any other annual period selected and designated by the Recipient as its Fiscal Year in accordance with applicable law.
"Force Account" means the use of the Recipient's own employees, equipment, or resources for the Project.
“GAAP” means generally accepted accounting principles, the uniform accounting and reporting procedures set forth in publications of the American Institute of Certified Public Accountants or its successor, or by any other generally accepted authority on such procedures, and includes, as applicable, the standards set forth by the Governmental Accounting Standards Board or its successor, or the Uniform System of Accounts, as adopted by the California Public Utilities Commission for water utilities. "Initiation of Construction" means the date that notice to proceed with work is issued for the Project, or, if notice to proceed is not required, the date of commencement of building and erection of the Project. “Listed Event” means, so long as the Recipient has outstanding any System Obligation subject to Rule 15c2-12, any of the events required to be reported with respect to such System Obligation pursuant to Rule 15c2-12(b)(5).
“Material Obligation” means an obligation of the Recipient that is material to this transaction, including System Obligations. The Material Obligations are these:
• The Promissory Note by and between the Yuba City Sewer Enterprise Fund and City of Yuba City-Pooled Cash Investment Funds as adopted by the City Council of Yuba City under Resolution No. 17-076 on December 17, 2013.
• The Equipment Lease/Purchase Agreement by and between Bank of America, National Association, and City of Yuba City dated as of November 13, 2014. “Maximum Annual Debt Service” means the maximum amount of Debt Service due on System Obligations in a Fiscal Year during the period commencing with the Fiscal Year for which such calculation is made and within the next five years in which Debt Service for any System Obligations will become due. "Net Revenues" means, for any Fiscal Year, all Revenues received by the Recipient less the Operations and Maintenance Costs for such Fiscal Year.
"Obligation" means the obligation of the Recipient to make Payments (including Additional Payments) as provided herein, as evidenced by the execution of this Agreement, proceeds of such obligations being used to fund the Project as specified in the Project Description in Exhibit A and Exhibit B and in the documents thereby incorporated by reference.
"Operations and Maintenance Costs" means the reasonable and necessary costs paid or incurred by the City for maintaining and operating the System, determined in accordance with generally accepted accounting principles, including but not limited to (a) all reasonable expenses of management and repair and other expenses necessary to maintain and preserve the System in good repair and working order, and (b) the reasonable administrative costs of the City attributable to the operation and maintenance of the System. “Operating and Maintenance Costs” do not include (i) debt service payable on obligations incurred by the City with respect to the System, including but not limited to the Installment Payments and any Parity Debt, (ii) depreciation, replacement and obsolescence charges or reserves therefor, and (iii) amortization of intangibles or other bookkeeping entries of a similar nature.

City of Yuba City
Agreement No.: D2501020
Project No.: C-06-8682-110

SRF 02vi2025
“Parity Obligation” means a debt obligation of the Recipient on parity with this Obligation. The Recipient’s Parity Obligations are these:
• Installment Sale Agreement by and between City of Yuba City and California State Water Resources Control Board, Dated as of October 15, 2012, and subsequently amended on August 13, 2013 (Agreement No. 12-804-550, Project No. C-06-7113-110). • Installment Sale Agreement by and between City of Yuba City and California State Water Resources Control Board, Dated as of January 20, 2012, and subsequently amended on December 5, 2014 (Agreement No. 11-830-550, Project No. C-06-7668-110). • Installment Sale Agreement by and between City of Yuba City and Yuba City Public Financing Authority, Dated as of April 1, 2017, Relating to the $6,820,000 Yuba City Public Financing Authority 2017 Wastewater Revenue Bonds (Federally Taxable- New Clean Renewable Energy Bonds).
• the City of Yuba City 2017 Wastewater Revenue Refunding Bonds issued in the aggregate original principal amount of $9,065,639 under Resolution No. 17-076 adopted by the City Council of the City on September 19, 2017
• Installment Sale Agreement by and between City of Yuba City and Yuba City Public Financing Authority, Dated as of September 1, 2018, Relating to the $23,430,000 Yuba City Public Financing Authority 2018 Wastewater Revenue Bonds.
“Payment” means any payment due to the State Water Board from the Recipient pursuant to this Agreement.
"Policy" means the State Water Board's “Policy for Implementing the Clean Water State Revolving Fund,” as amended from time to time, including the Intended Use Plan in effect as of the execution date of this Agreement.
“Project” means the Project financed by this Agreement as described in Exhibits A and B and in the documents incorporated by reference herein.
"Project Completion" means the date, as determined by the Division after consultation with the Recipient, that operation of the Project is initiated or is capable of being initiated, whichever comes first. "Project Costs" means the incurred costs of the Recipient which are eligible for financial assistance under this Agreement, which are allowable costs as defined under the Policy, and which are reasonable, necessary and allocable by the Recipient to the Project under GAAP, and may include capitalized interest.
“Project Funds” means all moneys disbursed to the Recipient by the State Water Board for eligible Project Costs pursuant to this Agreement.
“Recipient” means City of Yuba City.
“Records Retention End Date” means the last date that the Recipient is obligated to maintain records and is set forth on the Cover Page of this Agreement.
“Regional Water Quality Control Board” or “Regional Water Board” means the appropriate Regional Water Quality Control Board.

City of Yuba City
Agreement No.: D2501020
Project No.: C-06-8682-110

SRF 02vi2025
“Reimbursement Resolution” means the Recipient’s reimbursement resolution identified and incorporated by reference in this Agreement.
“Reserve Fund” means the reserve fund required pursuant to Exhibit B of this Agreement. "Revenues" means, for each Fiscal Year, all gross income and revenue received or receivable by the Recipient from the ownership or operation of the System, determined in accordance with GAAP, including (i) all rates, fees, and charges (including connection, capacity and extension fees and charges) as received by the Recipient for the services of the System, and (ii) all other income and revenue howsoever derived by the Recipient from the ownership or operation of the System or arising from the System, including all income from a. the deposit or investment of any money in the Enterprise Fund or any rate stabilization fund of the Recipient or held on the Recipient’s behalf, b. any refundable deposits made to establish credit, and c. advances or contributions in aid of construction.

For the avoidance of doubt, refundable deposits and advances or contributions are not included in the definition of Revenues. Additionally, amounts which are payable by the federal government under Section 6431 of the Tax Code are not included in the definition of Revenues. “Rule 15c2-12(b)(5)” means Rule 15c2-12(b)(5) promulgated by the Securities and Exchange Commission pursuant to the Securities Exchange Act of 1934, as amended. “Senior Obligation” means a debt obligation of the Recipient that is senior to this Obligation. There are no Senior Obligations.
“SRF” means the Clean Water State Revolving Fund.
“State” means State of California.
“State Water Board” means the State Water Resources Control Board. “Subordinate Obligation” means a debt obligation of the Recipient that is subordinate to this Obligation.

The Recipient has no Subordinate Obligations.
"System" means all wastewater collection, pumping, transport, treatment, storage, and disposal facilities, including land and easements thereof, owned by the Recipient, including the Project, and all other properties, structures, or works hereafter acquired and constructed by the Recipient and determined to be a part of the System, together with all additions, betterments, extensions, or improvements to such facilities, properties, structures, or works, or any part thereof hereafter acquired and constructed. “System Obligation” means any obligation of the Recipient payable from the Revenues, including but not limited to this Obligation, any Parity Obligation, any Subordinate Obligation, and such additional obligations as may hereafter be issued in accordance with the provisions of such obligations and this Agreement.
“Useful Life” means the economically useful life of the Project beginning at Completion of Construction and is set forth in Exhibit A.

City of Yuba City
Agreement No.: D2501020
Project No.: C-06-8682-110

SRF 02vi2025
“Year” means calendar year unless otherwise expressly indicated.

City of Yuba City
Agreement No.: D2501020
Project No.: C-06-8682-110

SRF 02vi2025
IN WITNESS WHEREOF, this Agreement has been executed by the parties hereto.

CITY OF YUBA CITY:

By: ____________________________________
Name: Josh Wolffe
Title: Director of Public Works
Date: __________________________________
STATE WATER RESOURCES CONTROL BOARD:

By: ____________________________________
Name: Michael Downey
Title: Acting Deputy Director
Division of Financial Assistance
Date: __________________________________
Jul 17, 2026
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&%-&+%&$$%$$)*'$KW6K47X0]P8+UK51B'&P$JM\,

City of Yuba City
Agreement No.: D2501020
Project No.: C-06-8682-110

Exhibit A
EXHIBIT A – SCOPE OF WORK
A.1. PROJECT DESCRIPTION, USEFUL LIFE, AND SCOPE OF WORK. (a) The Project is the project set forth on the Cover Page of this Agreement. (b) The Useful Life of this Project is at least thirty (30) years. (c) Project Purpose and Description
The funding under this Agreement shall be used to locate and install a new outfall pipeline to connect to existing pipeline to replacement outfall diffuser in the Feather River downstream of Shanghai Falls. This project will allow the City to replace its existing Outfall 1001 diffuser with a more reliable diffuser that meets current and future discharge permit requirements while discharging at a more stable location in the river.
(d) Scope of Work.

The Recipient agrees to do the following:
• Design and construction of a new treated effluent outfall (Outfall 004) to the Feather River • Construction of a new effluent pipeline connecting the wastewater treatment facility to the new outfall
• Installation of a multi-port diffuser at a location with improved hydraulic conditions • Modifications and connections to existing discharge infrastructure • Associated appurtenances and support facilities
• Permitting, environmental review, and regulatory compliance activities A.2. STANDARD PROJECT REQUIREMENTS.

A.2.1 Acknowledgements.

The Recipient shall include the following acknowledgement in any document, written report, or brochure prepared in whole or in part pursuant to this Agreement:
“Funding for this project has been provided in full or in part through an agreement with the State Water Resources Control Board. California’s Clean Water State Revolving Fund is capitalized through a variety of funding sources, including grants from the United States Environmental Protection Agency and state bond proceeds. The contents of this document do not necessarily reflect the views and policies of the foregoing, nor does mention of trade names or commercial products constitute endorsement or recommendation for use.”
A.2.2 Reports
A.2.2.1 Progress Reports.
(a) The Recipient must provide a progress report to the Division each quarter, beginning no later than 90 days after execution of this Agreement.

City of Yuba City
Agreement No.: D2501020
Project No.: C-06-8682-110

Exhibit A
(b) The Recipient must provide a progress report with each reimbursement request. Failure to provide a complete and accurate progress report may result in the withholding of Project Funds, as set forth in Exhibit B.
(c) A progress report must contain the following information:
i. A summary of progress to date including a description of progress since the last report, percent construction complete, percent contractor invoiced, and percent schedule elapsed;
ii. A description of compliance with environmental requirements; iii. A listing of change orders including amount, description of work, and change in contract amount and schedule; and
iv. Any problems encountered, proposed resolution, schedule for resolution, and status of previous problem resolutions.

A.2.2.2 Project Completion Report.
(a) The Recipient must submit a Project Completion Report to the Division with a copy to the appropriate Regional Water Board on or before the due date established by the Division and the Recipient at the time of final project inspection. The Project Completion Report must include the following:
i. Description of the Project,
ii. Description of the water quality problem the Project sought to address, iii. Discussion of the Project’s likelihood of successfully addressing that water quality problem in the future, and
iv. Summary of compliance with applicable environmental conditions. (b) If the Recipient fails to submit a timely Project Completion Report, the State Water Board may stop processing pending or future applications for new financial assistance, withhold disbursements under this Agreement or other agreements, and begin administrative proceedings.

A.2.2.3 As Needed Reports.

The Recipient must provide expeditiously, during the term of this Agreement, any reports, data, and information reasonably required by the Division, including but not limited to material necessary or appropriate for evaluation of the funding program or to fulfill any reporting requirements of the state or federal government.

A.2.2.4 [Reserved.]
A.2.3 Signage.

The Recipient shall place a sign at least four feet tall by eight feet wide made of ¾ inch thick exterior grade plywood or other approved material in a prominent location on the Project site and shall maintain

City of Yuba City
Agreement No.: D2501020
Project No.: C-06-8682-110

Exhibit A
the sign in good condition for the duration of the construction period. The sign must include the following disclosure statement and color logos (available from the Division):
a.
b. “Funding for this Wastewater Treatment Facility Outfall and Diffuser Project has been provided in full or in part by the Clean Water State Revolving Fund through an agreement with the State Water Resources Control Board.  California’s Clean Water State Revolving Fund is capitalized through a variety of funding sources, including grants from the United States Environmental Protection Agency and state bond proceeds.”
c. The Project sign may include another agency's required promotional information so long as the above logos and disclosure statement are equally prominent on the sign.  The sign shall be prepared in a professional manner.

A.2.4 Commencement of Operations.

Upon Completion of Construction of the Project, the Recipient must expeditiously initiate Project operations.

A.3 DATES & DELIVERABLES.
(a) Time is of the essence.
(b) The Recipient must expeditiously proceed with and complete construction of the Project. (c) The following dates are established as on the Cover Page of this Agreement:
i. Eligible Work Start Date
ii. Eligible Construction Start Date
iii. Completion of Construction Date
iv. Final Reimbursement Request Date
v. Records Retention End Date
vi. Final Payment Date
(d) The Recipient must award the prime construction contract timely. (e) The Recipient agrees to start construction no later than six (6) months after the execution of this Agreement.
(f) The Recipient must deliver any request for extension of the Completion of Construction date no less than 90 days prior to the Completion of Construction date. (g) The undisbursed balance of this Agreement will be deobligated if the Recipient does not provide its final reimbursement request to the Division on or before the Final Reimbursement Request Date.

City of Yuba City
Agreement No.: D2501020
Project No.: C-06-8682-110

Exhibit A
A.4 SCHEDULE.

Failure to provide items by the due dates indicated in the table below may constitute a material violation of this Agreement. The Project Manager may adjust the dates in the “Estimated Due Date” column of this table, but Critical Due Date adjustments will require an amendment to this Agreement. The Recipient must complete and submit all work in time to be approved by the Division prior to Project Completion. As applicable for specific submittals, the Recipient must plan adequate time to solicit, receive, and address comments prior to submitting the final submittal. The Recipient must submit the final reimbursement request prior to the Final Reimbursement Request Date set forth on the Cover Page.

ITEM DESCRIPTION OF SUBMITTAL CRITICAL DUE
DATE

ESTIMATED DUE
DATE
EXHIBIT A – SCOPE OF WORK
A. ADDITIONAL SUBMITTAL(S) TO DIVISION

2. Final Budget Approval Package N/A 12/31/2026

3. Completion of Construction 07/31/2029 N/A
B. REPORTS

1. Progress Reports N/A Quarterly

2. Final Inspection and Certification N/A 07/31/2029

3. Project Completion Report N/A 01/31/2030

4. As Needed Reports N/A As Requested by
Division
EXHIBIT B – REIMBURSEMENTS, BUDGET DETAIL
A. REIMBURSEMENTS

1. Eligible Work Start Date 01/01/2026 N/A

1. Reimbursement Requests N/A Quarterly

2. Final Reimbursement Request 01/31/2030 N/A

City of Yuba City
Agreement No.: D2501020
Project No.: C-06-8682-110

Exhibit B
EXHIBIT B – FUNDING TERMS
B.1. FUNDING AMOUNTS AND REIMBURSEMENTS
B.1.1 Funding Contingency and Other Sources.
(a) If this Agreement’s funding for any fiscal year expires due to reversion or is reduced, substantially delayed, or deleted by the state or federal government, such as by budget act, by executive order, or by order or action of the Department of Finance or a federal agency, the State Water Board has the option to either cancel this Agreement with no liability accruing to the State Water Board, or offer an amendment to the Recipient to reflect the reduced amount.
(b) If funding for Project Costs is made available to the Recipient from sources other than this Agreement, the Recipient must notify the Division. The Recipient may retain such funding up to an amount which equals the Recipient's share of Project Costs. To the extent allowed by requirements of other funding sources, excess funding must be remitted to the State Water Board to be applied to Payments due hereunder, if any.

B.1.2 Estimated Reasonable Cost.

The estimated reasonable cost of the total Project, including associated planning and design costs is fifty million dollars and no cents ($50,000,000.00).

B.1.3 Project Funding Amount.

Subject to the terms of this Agreement, the State Water Board agrees to provide Project Funds not to exceed the amount of the Project Funding Amount set forth on the Cover Page of this Agreement.

B.1.4 [Reserved.]
B. 1.5 Budget Costs.
(a) Estimated budget costs are contained in the Summary Project Cost Table below:

ITEM DESCRIPTION TOTAL

ESTIMATED COST

PROJECT FUNDING
AMOUNT
A Construction $48,348,000 $39,116,000
B Pre-Purchase Material / Equipment $3,510,000 $2,840,000 C Real Property/Easement Acquisition $0 $0
D Change Order Contingency $4,721,000 $3,820,000
E Force Account $0 $0
F Allowances $5,221,000 $4,224,000
TOTAL $61,800,000 $50,000,000
The Division’s Final Budget Approval and related Form 259 and Form 260 will document a more detailed budget of eligible Project Costs and Project funding amounts. Construction of the Project may be completed in phases with written approval of the Division. If construction proceeds under separate phases, the Recipient must submit a Final Budget Approval package and receive Final Budget Approval from the Division for each phase.

Upon written request by the Recipient, the Division may adjust the line items of the budget at the time of Division’s Final Budget Approval(s). Upon written request by the Recipient, the Division may also adjust the line items of the budget at the time of Recipient’s submittal of its final claim. Any line item adjustments

City of Yuba City
Agreement No.: D2501020
Project No.: C-06-8682-110

Exhibit B
to the budget that are due to a change in scope of work will require an Agreement amendment. The sum of adjusted line items in the budget approved through the Final Budget Approval process must not exceed the Project Funding Amount. The Division may also propose budget adjustments. (b) Under no circumstances may the sum of line items in the budget approved through the Final Budget Approval process exceed the Project Funding Amount. Any increase in the Project Funding Amount will require an Agreement amendment.

B.1.6 Contingent Disbursement.
(a) The State Water Board’s disbursement of funds hereunder is contingent on the Recipient’s compliance with the terms and conditions of this Agreement. (b) The State Water Board's obligation to disburse Project Funds is contingent upon the availability of sufficient funds to permit the disbursements provided for herein. If sufficient funds are not available for any reason, including but not limited to failure of the federal or State government to appropriate funds necessary for disbursement of Project Funds, the State Water Board shall not be obligated to make any disbursements to the Recipient under this Agreement. This provision shall be construed as a condition precedent to the obligation of the State Water Board to make any disbursements under this Agreement.

Nothing in this Agreement shall be construed to provide the Recipient with a right of priority for disbursement over any other entity. If any disbursements due the Recipient under this Agreement are deferred because sufficient funds are unavailable, it is the intention of the State Water Board that such disbursement will be made to the Recipient when sufficient funds do become available, but this intention is not binding.
(c) Construction costs and disbursements are not available until after the Division has approved the final budget form submitted by the Recipient for the corresponding costs except that the Deputy Director of the Division may authorize the disbursement of up to ten percent (10%) of Project Funds for the reimbursement of eligible construction costs and pre-purchased materials prior to Division approval of the final budget form submitted by the Recipient. All other construction costs are not eligible for reimbursement until after this the Division has approved the corresponding final budget form submitted by the Recipient.
(d) No costs incurred prior to the Eligible Work Start Date are eligible for reimbursement. (e) Construction costs incurred prior to the Eligible Construction Start Date are not eligible for reimbursement.
(f) Failure to proceed according to the timelines set forth in this Agreement may require the Recipient to repay to the State Water Board all disbursed Project Funds. (g) The Recipient agrees to ensure that its final reimbursement request is received by the Division no later than the Final Reimbursement Request Date. If the final reimbursement request is not received timely, the undisbursed balance of this Agreement will be deobligated. (h) The Recipient is not entitled to interest earned on undisbursed funds.

B.1.7 Reimbursement Procedure.

Except as may be otherwise provided in this Agreement, disbursement of Project Funds will be made as follows:
(a) Upon execution and delivery of this Agreement by both parties, the Recipient may request immediate reimbursement of any eligible incurred planning and design allowance costs through

City of Yuba City
Agreement No.: D2501020
Project No.: C-06-8682-110

Exhibit B
submission to the State Water Board of the Reimbursement Request Form 260 and Form 261, or any amendment thereto, duly completed and executed. To be eligible for reimbursement, Project Costs, including any planning and design allowance costs, must have been incurred in compliance with all applicable requirements, including the state and federal cross-cutting requirements listed in Exhibit C.
(b) The Recipient must submit a reimbursement request for costs incurred prior to the date this Agreement is executed by the State Water Board no later than ninety (90) days after this Agreement is executed by the State Water Board. Late reimbursement requests may not be honored.
(c) The Recipient may request reimbursement of eligible construction and equipment costs consistent with budget amounts approved by the Division in the Final Budget Approval. (d) Additional Project Funds will be promptly disbursed to the Recipient upon receipt of reimbursement request Form 260 and Form 261, or any amendment thereto, duly completed and executed by the Recipient for incurred costs consistent with this Agreement, along with receipt of progress reports due under Exhibit A.
(e) The Recipient must not request reimbursement for any Project Cost until such cost has been incurred and is currently due and payable by the Recipient, although the actual payment of such cost by the Recipient is not required as a condition of reimbursement request. Supporting documentation (e.g., receipts) must be submitted with each reimbursement request. The amount requested for administration costs must include a calculation formula (i.e., hours or days worked times the hourly or daily rate = total amount claimed). Disbursement of Project Funds will be made only after receipt of a complete, adequately supported, properly documented, and accurately addressed reimbursement request. Upon request by the Division, supporting documents for professional and administrative services must include the employees’ names, classifications, labor rates, hours worked, and descriptions of the tasks performed.

Reimbursement requests submitted without supporting documents may be wholly or partially withheld at the discretion of the Division.
(f) The Recipient must spend Project Funds within 30 days of receipt. If the Recipient earns interest earned on Project Funds, it must report that interest immediately to the State Water Board. The State Water Board may deduct earned interest from future disbursements. (g) The Recipient shall not request a reimbursement unless that Project Cost is allowable, reasonable, and allocable.
(h) Notwithstanding any other provision of this Agreement, no disbursement shall be required at any time or in any manner which is in violation of or in conflict with federal or state laws, policies, or regulations.
(i) No work or travel outside the State of California is permitted under this Agreement unless the Division provides prior written authorization. Failure to comply with this restriction may result in termination this Agreement, pursuant to Exhibit C. Any reimbursement for necessary travel and per diem shall be at rates not to exceed those set by the California Department of Human Resources at http://www.calhr.ca.gov/employees/Pages/travel-reimbursements.aspx. as of the date costs are incurred by the Recipient.

B.1.8 Withholding of Disbursements.

Notwithstanding any other provision of this Agreement, the State Water Board may withhold all or any portion of the Project Funds upon the occurrence of any of the following events:

City of Yuba City
Agreement No.: D2501020
Project No.: C-06-8682-110

Exhibit B
(a) The Recipient’s failure to maintain reasonable progress on the Project as determined by the Division;
(b) Placement on the ballot or passage of an initiative or referendum to repeal or reduce the Recipient’s taxes, assessments, fees, or charges levied for operation of the System or payment of debt service on System Obligations;
(c) Commencement of litigation or a judicial or administrative proceeding related to the Project, System, or Revenues that the State Water Board determines may impair the timely satisfaction of Recipient’s obligations under this Agreement; (d) Any investigation by the State Water Board, District Attorney, California State Auditor, Bureau of State Audits, the USEPA Office of Inspector General, the Internal Revenue Service, Securities and Exchange Commission, a grand jury, or any other state or federal agency, relating to the Recipient’s financial management, accounting procedures, or internal fiscal controls;
(e) A material adverse change in the condition of the Recipient, the Revenues, or the System, that the Division reasonably determines would materially impair the Recipient’s ability to satisfy its obligations under this Agreement, or any other event that the Division reasonably determines would materially impair the Recipient’s ability to satisfy its obligations under this Agreement;
(f) The Recipient’s material violation of, or threat to materially violate, any term of this Agreement;
(g) Suspicion of fraud, forgery, embezzlement, theft, or any other misuse of public funds by the Recipient or its employees, or by its contractors or agents regarding the Project or the System;
(h) An event requiring Notice as set forth in Exhibit C; (i) An Event of Default or an event that the Division determines may become an Event of Default.

B.1.9 Fraud and Misuse of Public Funds; Enforcement.

All requests for reimbursement submitted must be accurate and signed by the Recipient’s Authorized Representative under penalty of perjury. All costs submitted pursuant to this Agreement must only be for the work or tasks set forth in this Agreement. The Recipient must not submit any invoice containing costs that are ineligible or have been reimbursed from other funding sources unless required and specifically noted as such (i.e., match costs). Any eligible costs for which the Recipient is seeking reimbursement shall not be reimbursed from any other source. Double or multiple billing for time, services, or any other eligible cost is improper and will not be compensated. Any suspected occurrences of fraud, forgery, embezzlement, theft, or any other misuse of public funds may result in suspension of disbursements and, notwithstanding any other section in this Agreement, the termination of this Agreement requiring the repayment of all Project Funds disbursed hereunder. Additionally, the Deputy Director of the Division may request an audit; refer the matter for appropriate administrative action, including but not limited to the recovery of financial assistance provided and the imposition of civil penalties; and/or refer the matter to the Attorney General’s Office or the appropriate district attorney’s office for criminal prosecution or the imposition of civil liability. A person who knowingly makes or causes to be made any false statement, material misrepresentation, or false certification in any submittal may be subject to a civil penalty, criminal fine, or imprisonment. (Wat. Code, § 13490 et seq.) B.2 RECIPIENT’S PAYMENT OBLIGATION, PLEDGE, AND RESERVE B.2.1 Project Costs.

The Recipient must pay any and all costs connected with the Project including, without limitation, any and all Project Costs and Additional Payments. If the Project Funds are not sufficient to pay the Project Costs in full, the Recipient must nonetheless complete the Project and pay that portion of the Project Costs in

City of Yuba City
Agreement No.: D2501020
Project No.: C-06-8682-110

Exhibit B
excess of available Project Funds, and shall not be entitled to any reimbursement therefor from the State Water Board.

B.2.2 Estimated Principal Payment Due.

The estimated amount of principal that will be due to the State Water Board from the Recipient under this Agreement is fifty million dollars and no cents ($50,000,000.00).

B.2.3 Interest Rate and In-Lieu of Interest Charges.
(a) The Recipient agrees to make all Payments according to the schedule in Exhibit E, and as otherwise set forth herein, at an interest rate of two and two-tenths percent (2.2%) per annum. (b) Interest will accrue beginning with each disbursement. Interest accrued prior to Completion of Construction will be Construction Period Interest and will be capitalized. At Completion of Construction, all accrued Construction Period Interest will be added to the principal amount. The final Payment Schedule will reflect the inclusion of Construction Period Interest in the principal amount. (c) Construction Period Interest cannot be estimated at the date of execution of the Agreement. Estimated payments in the preliminary Payment Schedule, attached as Exhibit E, will include zero Construction Period Interest. Construction Period Interest will accrue as the Recipient receives disbursements. The total amount of Construction Period Interest owed by the Recipient will not be finalized until Completion of Construction.
(d) In lieu of, and not to exceed, interest otherwise due under this Agreement, the Recipient agrees to pay the following charge(s), as further set forth in Exhibit E:
• an Administrative Service Charge
• a Small Community Grant Fund Charge
B.2.4 [Reserved.]
B.2.5 Obligation Absolute.

The obligation of the Recipient to make the Payments and other payments required to be made by it under this Agreement, from the Net Revenues and/or other amounts legally available to the Recipient therefor, is absolute and unconditional, and until such time as the Payments and Additional Payments have been paid in full, the Recipient must not discontinue or suspend any Payments or other payments required to be made by it hereunder when due, whether or not the Project, or any related part thereof is operating or operable or has been completed, or its use is suspended, interfered with, reduced or curtailed or terminated in whole or in part, and such Payments and other payments shall not be subject to reduction whether by offset or otherwise and shall not be conditional upon the performance or nonperformance by any party of any agreement for any cause whatsoever.

B.2.6 Payment Timing.
(a) The Recipient must make the first annual Payment of the principal due under this Agreement, including capitalized Construction Period Interest, together with all interest accruing thereon, by the Payment Start Date indicated on the Cover Page. The Recipient must make annual Payments, due by July 31, 2030 , fully amortizing the total principal due under this Agreement, together with interest, by the Final Payment Date stated on the Cover Page. Payment calculations are based on a standard fully amortized assistance amount with equal annual payments. As a courtesy, the Division will provide a payment notice to the Recipient prior to the Payment due date, which will include the Payment amount

City of Yuba City
Agreement No.: D2501020
Project No.: C-06-8682-110

Exhibit B
due. Regardless of the delivery of a payment notice, the Recipient is responsible for timely payment of all amounts due.
(b) The remaining balance is the previous balance, plus the disbursements, plus the accrued interest on both, plus any Charge In Lieu of Interest, less the Payment. Payment calculations will be made prior to the Payment Start Date.. Exhibit E is a payment schedule based on the provisions of this Exhibit and an estimated disbursement schedule. Actual payments will be based on actual disbursements. The Division will prepare any necessary changes to the payment schedule and send them to the Recipient. (c) Upon Completion of Construction and submission of necessary reports by the Recipient, the Division will prepare an appropriate payment schedule and supply the same to the Recipient. The Division may amend this schedule as necessary to accurately reflect amounts due under this Agreement. (d) The Recipient must make each Payment on or before the due date therefor. A ten (10) day grace period will be allowed, after which time a penalty in the amount of costs incurred by the State Water Board will be assessed for late payment. These costs may include, but are not limited to, lost interest earnings, staff time, bond debt service default penalties, if any, and other related costs. For purposes of penalty assessment, payment will be deemed to have been made if payment is deposited in the U.S. Mail within the grace period with postage prepaid and properly addressed. Any penalties assessed will not be added to the assistance amount balance, but will be treated as a separate account and obligation of the Recipient. The interest penalty will be assessed from the payment due date. (e) The Recipient is obligated to make all payments required by this Agreement to the State Water Board, notwithstanding any individual default by its constituents or others in the payment to the Recipient of fees, charges, taxes, assessments, tolls or other charges ("Charges") levied or imposed by the Recipient. The Recipient must provide for the punctual payment to the State Water Board of all amounts which become due under this Agreement and which are received from constituents or others in the payment to the Recipient. In the event of failure, neglect or refusal of any officer of the Recipient to levy or cause to be levied any Charge to provide payment by the Recipient under this Agreement, to enforce or to collect such Charge, or to pay over to the State Water Board any money collected on account of such Charge necessary to satisfy any amount due under this Agreement, the State Water Board may take such action in a court of competent jurisdiction as it deems necessary to compel the performance of all duties relating to the imposition or levying and collection of any of such Charges and the payment of the money collected therefrom to the State Water Board. Action taken pursuant hereto shall not deprive the State Water Board of, or limit the application of, any other remedy provided by law or by this Agreement. (f) Each Payment must be paid in lawful money of the United States of America by check or other acceptable form of payment set forth at www.waterboards.ca.gov/make_a_payment.

The Recipient must pay Payments and Additional Payments from Net Revenues and/or other amounts legally available to the Recipient therefor.

B.2.7 Pledged Revenues.

B.2.7.1 Establishment of Enterprise Fund and Reserve Fund.

In order to carry out its System Obligations, the Recipient covenants that it shall establish and maintain or shall have established and maintained the Enterprise Fund. All Revenues received shall be deposited when and as received in trust in the Enterprise Fund. As required in this Exhibit, the Recipient must establish and maintain a Reserve Fund.

B.2.7.2 Pledge of Net Revenues, Enterprise Fund, and Reserve Fund.

The Obligation hereunder shall be secured by a lien on and pledge of the Enterprise Fund, Net Revenues, and any Reserve Fund on parity with the Parity Obligations. The Recipient hereby pledges

City of Yuba City
Agreement No.: D2501020
Project No.: C-06-8682-110

Exhibit B
and grants such lien on and pledge of the Enterprise Fund, Net Revenues, and any Reserve Fund to secure the Obligation, including payment of Payments and Additional Payments hereunder. The Enterprise Fund, Net Revenues in the Enterprise Fund, and any Reserve Fund shall be subject to the lien of such pledge without any physical delivery thereof or further act, and the lien of such pledge shall be valid and binding as against all parties having claims of any kind in tort, contract, or otherwise against the Recipient.

B.2.7.3 Application and Purpose of the Enterprise Fund.

Subject to the provisions of any outstanding System Obligation, money on deposit in the Enterprise Fund shall be applied and used first, to pay Operations and Maintenance Costs, and thereafter, all amounts due and payable with respect to the System Obligations in order of priority. After making all payments hereinabove required to be made in each Fiscal Year, the Recipient may expend in such Fiscal Year any remaining money in the Enterprise Fund for any lawful purpose of the Recipient.

B.2.8 No Prepayment.

Pursuant to State Water Board’s Debt Management Policy, adopted on October 3, 2017, the Recipient may not prepay any portion of the principal and interest due under this Agreement without the written consent of the Deputy Director of the Division.

B.2.9 Reserve Fund.

Prior to Completion of Construction, the Recipient must establish a restricted Reserve Fund, held in its Enterprise Fund, equal to one year’s Debt Service on this Obligation. The Recipient must maintain the Reserve Fund throughout the term of this Agreement. The Reserve Fund is subject to lien and pledged as security for this Obligation, and its use is restricted to payment of this Obligation during the term of this Agreement.

B.3 RATES, FEES AND CHARGES.
(a) The Recipient must, to the extent permitted by law, fix, prescribe and collect rates, fees and charges for the System during each Fiscal Year which are reasonable, fair, and nondiscriminatory and which will be sufficient to generate Revenues in the amounts necessary to cover Operations and Maintenance Costs, and must ensure that Net Revenues are equal to the sum of (i) at least 120% of the Maximum Annual Debt Service with respect to all outstanding System Obligations senior to and on parity with the Obligation and (ii) at least 100% of the Maximum Annual Debt Service with respect to all outstanding System Obligations subordinate to the Obligation, so long as System Obligations other than this Obligation are outstanding. Upon defeasance of all System Obligations other than this Obligation, this ratio must be at least 120%, except where System Obligations are defeased pursuant to refunding obligations.
(b) The Recipient may make adjustments from time to time in such fees and charges and may make such classification thereof as it deems necessary, but shall not reduce the rates, fees and charges then in effect unless the Net Revenues from such reduced rates, fees, and charges will at all times be sufficient to meet the requirements of this section.
(c) Upon consideration of a voter initiative to reduce Revenues, the Recipient must make a finding regarding the effect of such a reduction on the Recipient's ability to satisfy the rate covenant set forth in this Section. The Recipient must make its findings available to the public. The Recipient’s Authorized Representative must request, if necessary, the authorization of the Recipient’s decision-maker or decision-making body to file litigation to challenge any such initiative that it finds will render it unable to satisfy the rate covenant set forth in this Agreement and its obligation to operate and maintain the Project for its Useful Life. The Recipient must diligently pursue and bear any and all costs related to such

City of Yuba City
Agreement No.: D2501020
Project No.: C-06-8682-110

Exhibit B
challenge. The Recipient must notify and regularly update the State Water Board regarding the status of any such challenge.

B.4 ADDITIONAL DEBT.
(a) The Recipient’s future debt that is secured by Revenues pledged herein may not be senior to this Obligation.
(b) The Recipient may issue additional parity or subordinate debt only if all of the following conditions are met:
i. No Event of Default (or no event with respect to which notice has been given and which, once all notice of grace periods have passed, would constitute an Event of Default) has occurred and is continuing;
ii. Net Revenues in the most recent Fiscal Year, excluding transfers from a rate stabilization fund, if any, meet the ratio for rate covenants set forth in this Exhibit with respect to any outstanding and proposed additional obligations;
iii. The Recipient is in compliance with any reserve fund requirement of this Obligation.

B.5 NO LIENS.

The Recipient must not make any pledge of or place any lien on the Project, System, or Revenues except as otherwise provided or permitted by this Agreement.

City of Yuba City
Agreement No.: D2501020
Project No.: C-06-8682-110

Exhibit C
EXHIBIT C – GENERAL & PROGRAMMATIC TERMS & CONDITIONS
C.1 REPRESENTATIONS & WARRANTIES.

The Recipient represents, warrants, and commits to the following as of the Eligible Work Start Date and continuing thereafter for the term of this Agreement.

C.1.1 Application and General Recipient Commitments.

The Recipient has not made any untrue statement of a material fact in its application for this financial assistance, or omitted to state in its application a material fact that makes the statements in its application not misleading.

The Recipient agrees to comply with all terms, provisions, conditions, and commitments of this Agreement, including all incorporated documents.

The Recipient agrees to fulfill all assurances, declarations, representations, and commitments in its application, accompanying documents, and communications filed in support of its request for funding under this Agreement.

C.1.2 Authorization and Validity.

The execution and delivery of this Agreement, including all incorporated documents, has been duly authorized by the Recipient. Upon execution by both parties, this Agreement constitutes a valid and binding obligation of the Recipient, enforceable in accordance with its terms, except as such enforcement may be limited by law.

C.1.3 No Violations.

The execution, delivery, and performance by Recipient of this Agreement, including all incorporated documents, do not violate any provision of any law or regulation in effect as of the date of execution of this Agreement by the Recipient, or result in any breach or default under any contract, obligation, indenture, or other instrument to which Recipient is a party or by which Recipient is bound as of the date of execution of this Agreement by the Recipient.

C.1.4 No Litigation.

There are, as of the date of execution of this Agreement by the Recipient, no pending or, to Recipient’s knowledge, threatened actions, claims, investigations, suits, or proceedings before any governmental authority, court, or administrative agency which materially affect, or, if resolved unfavorably to the Recipient, would materially affect the financial condition or operations of the Recipient, the System, the Revenues, and/or the Project.

There are no proceedings, actions, or offers by a public entity to acquire by purchase or the power of eminent domain the System or any of the real or personal property related to or necessary for the Project.

C.1.5 Property Rights.

Except as disclosed in the opinion of general counsel required by Section 3(b)(ii) above and delivered in connection with this Agreement, the Recipient owns or has sufficient property rights

City of Yuba City
Agreement No.: D2501020
Project No.: C-06-8682-110

Exhibit C
in the Project property for the longer of the Useful Life or the term of this Agreement, either in fee simple or for a term of years that is not subject to third-party revocation during the Useful Life of the Project. Any and all property rights necessary for the construction of the Project and/or operation of the Project through the longer of the Useful Life or the term of this Agreement which the Recipient does not possess at the execution of this Agreement (the “Post-Execution Property Rights”) shall be acquired by the Recipient in accordance with the provisions of Exhibit D. The Recipient shall deliver proof of its acquisition of the Post-Execution Property Rights in accordance with the provisions of Exhibit D.

C.1.6 Solvency and Insurance.

None of the transactions contemplated by this Agreement will be or have been made with an actual intent to hinder, delay, or defraud any present or future creditors of Recipient. The Recipient is solvent and will not be rendered insolvent by the transactions contemplated by this Agreement. The Recipient is able to pay its debts as they become due. The Recipient maintains sufficient insurance coverage considering the scope of this Agreement, including, for example but not necessarily limited to, general liability, automobile liability, workers compensation and employer liability, professional liability.

C.1.7 Legal Status and Eligibility.

The Recipient is duly organized and existing and in good standing under the laws of the State of California. Recipient must at all times maintain its current legal existence and preserve and keep in full force and effect its legal rights and authority. The Recipient acknowledges that changes to its legal or financial status may affect its eligibility for funding under this Agreement and commits to maintaining its eligibility. Within the preceding ten years, the Recipient has not failed to demonstrate compliance with state or federal audit disallowances.

C.1.8 Financial Statements and Continuing Disclosure.

The financial statements of Recipient previously delivered to the State Water Board as of the date(s) set forth in such financial statements: (a) are materially complete and correct; (b) present fairly the financial condition of the Recipient; and (c) have been prepared in accordance with GAAP. Since the date(s) of such financial statements, there has been no material adverse change in the financial condition of the Recipient, nor have any assets or properties reflected on such financial statements been sold, transferred, assigned, mortgaged, pledged or encumbered, except as previously disclosed in writing by Recipient and approved in writing by the State Water Board.

The Recipient is current in its continuing disclosure obligations associated with its material debt, if any.

C.1.9 System Obligations
The Recipient has no System Obligations other than those defined in this Agreement.

C.1.10 No Other Material Obligations.

The Recipient has no Material Obligations other than System Obligations.

C.1.11 Compliance with State Water Board Funding Agreements.

The Recipient represents that it is in compliance with all State Water Board funding agreements to which it is a party.

City of Yuba City
Agreement No.: D2501020
Project No.: C-06-8682-110

Exhibit C
C.2 DEFAULTS AND REMEDIES
In addition to any other remedy set forth in this Agreement, the following remedies are available under this Agreement.

C.2.1 Return of Funds; Acceleration; and Additional Payments.

Notwithstanding any other provision of this Agreement, if the Division determines that an Event of Default has occurred, the Recipient may be required, upon demand, immediately to do each of the following:
i. return to the State Water Board any grant or principal forgiveness amounts received pursuant to this Agreement;
ii. accelerate the payment of any principal owed under this Agreement, all of which shall be immediately due and payable;
iii. pay interest at the highest legal rate on all of the foregoing; and iv. pay any Additional Payments.

C.2.2 [Reserved.]
C.2.3 Administrative remedies.

Whenever the State Water Board determines that the Recipient, the Recipient’s contractor, consultant, employee, agent, assignee, or grantee has violated any requirement or term of the Agreement, the State Water Board may impose civil penalties in accordance with Water Code, section 13497. The State Water Board may impose civil liability administratively against the Recipient or the Recipient’s consultant or contractor or other agent furnishing any information related to funds disbursed or costs claimed for reimbursement if the Recipient or the Recipient’s consultant or contractor or other agent fails to personally attest that the information is true, accurate, and complete the best of one’s knowledge. (Wat.

Code, § 13498.) The State Water Board may impose civil liability administratively against any person who makes a misrepresentation in any submittal to the State Water Board, including, but not limited to, an application, report, certification, record, invoice, form, or other document that is submitted to the State Water Board relating to a financial assistance agreement. (Wat. Code, § 13499.) C.2.4 Judicial remedies.

Whenever the State Water Board determines that an Event of Default shall have occurred, the State Water Board may enforce its rights under this Agreement by any judicial proceeding, whether at law or in equity. Without limiting the generality of the foregoing, the State Water Board may:
i. by suit in equity, require the Recipient to account for amounts relating to this Agreement as if the Recipient were the trustee of an express trust; ii. by mandamus or other proceeding, compel the performance by the Recipient and any of its officers, agents, and employees of any duty under the law or of any obligation or covenant under this Agreement, including but not limited to the imposition and collection of rates for the services of the System sufficient to meet all requirements of this Agreement; and
iii. take whatever action at law or in equity as may appear necessary or desirable to the State Water Board to collect the Payments then due or thereafter to become due, or to enforce performance of any obligation or covenant of the Recipient under this Agreement.

City of Yuba City
Agreement No.: D2501020
Project No.: C-06-8682-110

Exhibit C
C.2.5 Termination.

Upon an Event of Default, the State Water Board may terminate this Agreement. Interest shall accrue on all amounts due at the highest legal rate of interest from the date that the State Water Board delivers notice of termination to the Recipient.

C.2.6 Damages for Breach of Tax-Exempt Status.

In the event that any breach of any of the provisions of this Agreement by the Recipient results in the loss of tax-exempt status for any bonds of the State or any subdivision or agency thereof, or if such breach results in an obligation on the part of the State or any subdivision or agency thereof to reimburse the federal government by reason of any arbitrage profits, the Recipient must immediately reimburse the State or any subdivision or agency thereof in an amount equal to any damages paid by or loss incurred by the State or any subdivision or agency thereof due to such breach.

C.2.7 Damages for Breach of Federal Conditions.

In the event that any breach of any of the provisions of this Agreement by the Recipient results in the failure of Project Funds to be used pursuant to the provisions of this Agreement, or if such breach results in an obligation on the part of the State or any subdivision or agency thereof to reimburse the federal government, the Recipient must immediately reimburse the State or any subdivision or agency thereof in an amount equal to any damages paid by or loss incurred by the State or any subdivision or agency thereof due to such breach.

C.2.8 Remedies and Limitations.

None of the remedies available to the State Water Board shall be exclusive of any other remedy, and each such remedy shall be cumulative and in addition to every other remedy given hereunder or now or hereafter existing at law or in equity. The State Water Board may exercise any remedy, now or hereafter existing, without exhausting and without regard to any other remedy.

Any claim of the Recipient is limited to the rights and remedies provided to the Recipient under this Agreement and is subject to the claims procedures provided to the Recipient under this Agreement.

C.2.9 Non-Waiver.

Nothing in this Agreement shall affect or impair the Recipient’s Obligation to pay Payments as provided herein or shall affect or impair the right of the State Water Board to bring suit to enforce such payment.

No delay or omission of the State Water Board in the exercise of any right arising upon an Event of Default shall impair any such right or be construed to be a waiver of any such Event of Default. The State Water Board may exercise from time to time and as often as shall be deemed expedient by the State Water Board, any remedy or right provided by law or pursuant to this Agreement.

C.2.10 Status Quo.

If any action to enforce any right or exercise any remedy shall be brought and either discontinued or determined adversely to the State Water Board, then the State Water Board shall be restored to its former position, rights and remedies as if no such action had been brought.

City of Yuba City
Agreement No.: D2501020
Project No.: C-06-8682-110

Exhibit C
C.3 STANDARD CONDITIONS
C.3.1 Access, Inspection, and Public Records.

The Recipient must ensure that the State Water Board, the Governor of the State, the USEPA, the USEPA’s Office of Inspector General, any member of Congress, or any authorized representative of the foregoing, will have safe and suitable access to the Project site at all reasonable times during Project construction and thereafter for the term of the Agreement. The Recipient acknowledges that, except for a subset of information regarding archaeological records, the Project records and locations are public records, including but not limited to all of the submissions accompanying the application, all of the documents incorporated into this Agreement by reference, and all reports, reimbursement requests, and supporting documentation submitted hereunder.

C.3.2 Accounting and Auditing Standards; Financial Management Systems; Records Retention. (a) The Recipient must maintain project accounts according to GAAP as issued by the Governmental Accounting Standards Board (GASB) or its successor. The Recipient must maintain GAAP-compliant project accounts, including GAAP requirements relating to the reporting of infrastructure assets. (b) The Recipient must comply with federal standards for financial management systems. The Recipient agrees that, at a minimum, its fiscal control and accounting procedures will be sufficient to permit preparation of reports required by the federal government and tracking of Project funds to a level of expenditure adequate to establish that such funds have not been used in violation of federal or state law or the terms of this Agreement. To the extent applicable, the Recipient must comply with the provisions and requirements of the federal Single Audit Act (SAA) of 1984, 2 CFR part 200, subpart F, and 2 CFR section 200.302, and updates or revisions thereto, including but not limited to:
• Maintain an annual (Fiscal Year) accounting system and identify all expenditures of federal financial assistance;
• Conduct a SAA audit using an independent auditor in those Fiscal Years when expenditures of total federal financial assistance equal or exceed the applicable threshold in 2 CFR section 200.501, and submit the SAA audit to the Federal Audit Clearinghouse within the earlier of thirty (30) calendar days after receipt of the auditor’s report(s) or nine (9) months of the end of the audit period;
• Notify the Division when a SAA audit has been conducted and submitted to the Federal Audit Clearinghouse;
• Notify and provide the Division with a copy of the SAA audit within thirty (30) days of completion of the audit;
• Inform the Division of findings and recommendations pertaining to federal financial assistance provided through the State Water Board contained in SAA audits conducted by the Recipient; • Initiate corrective actions for audit reports with findings and recommendations that impact federal financial assistance provided through the State Water Board and notify the Division when corrective actions are complete.
(c) Without limitation of the requirement to maintain Project accounts in accordance with GAAP, the Recipient must:
i. Establish an official file for the Project which adequately documents all significant actions relative to the Project;
ii. Establish separate accounts which will adequately and accurately depict all amounts received and expended on the Project, including all assistance funds received under this Agreement;

City of Yuba City
Agreement No.: D2501020
Project No.: C-06-8682-110

Exhibit C
iii. Establish separate accounts which will adequately depict all income received which is attributable to the Project, specifically including any income attributable to assistance funds disbursed under this Agreement; iv. Establish an accounting system which will accurately depict final total costs of the Project, including both direct and indirect costs;
v. Establish such accounts and maintain such records as may be necessary for the State to fulfill federal reporting requirements, including any and all reporting requirements under federal tax statutes or regulations; and vi. If Force Account is used by the Recipient for any phase of the Project, other than for planning, design, and construction engineering and administration provided for by allowance, accounts will be established which reasonably document all employee hours charged to the Project and the associated tasks performed by each employee. Indirect costs are not eligible for funding.

C.3.3 Amendment.

No amendment or variation of the terms of this Agreement shall be valid unless made in writing and signed by both the Recipient and the Deputy Director or designee.

Requests for amendments must be in writing and directed to the contact listed in Section 4 and to the Division’s Chief of Loans and Grants Administration Section.

C.3.4 Assignability.

This Agreement is not assignable by the Recipient, either in whole or in part, without the consent of the State Water Board in the form of a formal written amendment to this Agreement.

C.3.5 Audit.
(a) The Division may call for an audit of financial information relative to the Project if the Division determines that an audit is desirable to assure program integrity or if an audit becomes necessary because of state or federal requirements. If an audit is called for, the audit must be performed by a certified public accountant independent of the Recipient and at the cost of the Recipient. The audit must be in the form required by the Division.
(b) Audit disallowances must be returned to the State Water Board.

C.3.6 Bonding.

Where contractors are used, the Recipient must not authorize construction to begin until each contractor has furnished a performance bond in favor of the Recipient in the following amounts: faithful performance (100%) of contract value; labor and materials (100%) of contract value. This requirement shall not apply to any contract for less than $25,000.00.

C.3.7 Competitive Bidding
Recipient must adhere to any applicable state law or local ordinance for competitive bidding and applicable labor laws.

City of Yuba City
Agreement No.: D2501020
Project No.: C-06-8682-110

Exhibit C
C.3.8 Compliance with Applicable Laws, Rules, and Requirements.

The Recipient must, at all times, comply with and require its contractors and subcontractors to comply with all applicable federal and state laws, rules, guidelines, regulations, and requirements. Without limitation of the foregoing, to the extent applicable, the Recipient must:
(a) Comply with the provisions of the adopted environmental mitigation plan, if any, for the term of this Agreement;
(b) Comply with the Policy; and
(c) Comply with and require compliance with the state and federal requirements set forth elsewhere in this Agreement.

C.3.9 Computer Software.

The Recipient certifies that it has appropriate systems and controls in place to ensure that state funds will not be used in the performance of this Agreement for the acquisition, operation or maintenance of computer software in violation of copyright laws.

C.3.10 Conflict of Interest.

The Recipient certifies that its owners, officers, directors, agents, representatives, and employees are in compliance with applicable state and federal conflict of interest laws.

C.3.11 Continuous Use of Project; No Lease, Sale, Transfer of Ownership, or Disposal of Project.

The Recipient agrees that, except as provided in this Agreement, it will not abandon, substantially discontinue use of, lease, sell, transfer ownership of, or dispose of all or a significant part or portion of the Project during the Useful Life of the Project without prior written approval of the Division. Such approval may be conditioned as determined to be appropriate by the Division, including a condition requiring repayment of all disbursed Project Funds or all or any portion of all remaining funds covered by this Agreement together with accrued interest and any penalty assessments that may be due.

C.3.12 Data Management.

The Recipient will undertake appropriate data management activities so that Project data can be incorporated into statewide data systems.

C.3.13 Disputes.
(a) The Recipient may appeal a staff decision within 30 days to the Deputy Director of the Division or designee, for a final Division decision. The Recipient may appeal a final Division decision to the State Water Board within 30 days. The Office of the Chief Counsel of the State Water Board will prepare a summary of the dispute and make recommendations relative to its final resolution, which will be provided to the State Water Board’s Executive Director and each State Water Board Member. Upon the motion of any State Water Board Member, the State Water Board will review and resolve the dispute in the manner determined by the State Water Board. Should the State Water Board determine not to review the final Division decision, this decision will represent a final agency action on the dispute. (b) This clause does not preclude consideration of legal questions, provided that nothing herein shall be construed to make final the decision of the State Water Board, or any official or representative thereof, on any question of law.

City of Yuba City
Agreement No.: D2501020
Project No.: C-06-8682-110

Exhibit C
(c) Recipient must continue with the responsibilities under this Agreement during any dispute. (d) This section relating to disputes does not establish an exclusive procedure for resolving claims within the meaning of Government Code sections 930 and 930.4.

C.3.14 [Reserved.]
C.3.15 Environmental Clearance.
(a) No work that is subject to CEQA or NEPA may proceed under this Agreement unless the State Water Board has provided environmental clearance. The State Water Board may require changes in the scope of work or additional mitigation as a condition to providing construction or implementation funding under this Agreement. Recipient shall not perform any work subject to CEQA and/or NEPA before the State Water Board completes its environmental review and specifies any changes in scope or additional mitigation that may be required. Proceeding with work subject to CEQA and/or NEPA without approval by the State Water Board shall constitute a breach of a material provision of this Agreement. (b) If this Project includes modification of a river or stream channel, the Recipient must fully mitigate environmental impacts resulting from the modification. The Recipient must provide documentation that the environmental impacts resulting from such modification will be fully mitigated considering all of the impacts of the modification and any mitigation, environmental enhancement, and environmental benefit resulting from the Project, and whether, on balance, any environmental enhancement or benefit equals or exceeds any negative environmental impacts of the Project.

C.3.16 Governing Law.

This Agreement is governed by and shall be interpreted in accordance with the laws of the State of California.

C.3.17 Income Restrictions.

The Recipient agrees that any refunds, rebates, credits, or other amounts (including any interest thereon) accruing to or received by the Recipient under this Agreement must be paid by the Recipient to the State Water Board, to the extent that they are properly allocable to costs for which the Recipient has been reimbursed by the State Water Board under this Agreement.

C.3.18 Indemnification and State Reviews.

The parties agree that review or approval of Project plans and specifications by the State Water Board is for administrative purposes only, including conformity with application and eligibility criteria, and expressly not for the purposes of design defect review or construction feasibility, and does not relieve the Recipient of its responsibility to properly plan, design, construct, operate, and maintain the Project. To the extent permitted by law, the Recipient agrees to indemnify, defend, and hold harmless the State Water Board, the Bank, and any trustee, and their officers, employees, and agents for the Bonds, if any (collectively, "Indemnified Persons"), against any loss or liability arising out of any claim or action brought against any Indemnified Persons from and against any and all losses, claims, damages, liabilities, or expenses, of every conceivable kind, character, and nature whatsoever arising out of, resulting from, or in any way connected with (1) the System or the Project or the conditions, occupancy, use, possession, conduct, or management of, work done in or about, or the planning, design, acquisition, installation, or construction, of the System or the Project or any part thereof; (2) the carrying out of any of the transactions contemplated by this Agreement or any related document; (3) any violation of any applicable law, rule or regulation, any environmental law (including, without limitation, the Federal Comprehensive Environmental Response, Compensation and Liability Act, the Resource Conservation and Recovery Act,

City of Yuba City
Agreement No.: D2501020
Project No.: C-06-8682-110

Exhibit C
the California Hazardous Substance Account Act, the Federal Water Pollution Control Act, the Clean Air Act, the Toxic Substances Control Act, the Occupational Safety and Health Act, the Safe Drinking Water Act, the California Hazardous Waste Control Law, and California Water Code Section 13304, and any successors to said laws), rule or regulation or the release of any toxic substance on or near the System or the Project; or (4) any untrue statement or alleged untrue statement of any material fact or omission or alleged omission to state a material fact necessary to make the statements required to be stated therein, in light of the circumstances under which they were made, not misleading with respect to any information provided by the Recipient for use in any disclosure document utilized in connection with any of the transactions contemplated by this Agreement, except those arising from the gross negligence or willful misconduct of the Indemnified Persons. The Recipient must also provide for the defense and indemnification of the Indemnified Persons in any contractual provision extending indemnity to the Recipient in any contract let for the performance of any work under this Agreement, and must cause the Indemnified Persons to be included within the scope of any provision for the indemnification and defense of the Recipient in any contract or subcontract. To the fullest extent permitted by law, the Recipient agrees to pay and discharge any judgment or award entered or made against Indemnified Persons with respect to any such claim or action, and any settlement, compromise or other voluntary resolution. The provisions of this section survive the term of this Agreement.

C.3.19 Independent Actor.

The Recipient, and its agents and employees, if any, in the performance of this Agreement, shall act in an independent capacity and not as officers, employees, or agents of the State Water Board.

C.3.20 Integration.

This Agreement constitutes the complete and final agreement between the parties. No oral or written understanding or agreement not incorporated in this Agreement shall be binding on either party.

C.3.21 Leveraging Covenants.
(a) Notwithstanding any other provision hereof, the Recipient covenants and agrees that it will comply with the Tax Covenants set forth in Exhibit F of this Agreement. (b) The Recipient covenants to furnish such financial, operating and other data pertaining to the Recipient as may be requested by the State Water Board to: (i) enable the State Water Board to cause the issuance of Bonds and provide for security therefor; or (ii) enable any underwriter of Bonds issued for the benefit of the State Water Board to comply with Rule 15c2-12(b)(5). (c) The Recipient further covenants to provide the State Water Board with copies of all continuing disclosure documents or reports that are disclosed pursuant to (i) the Recipient’s continuing disclosure undertaking or undertakings made in connection with any outstanding System Obligation, (ii) the terms of any outstanding System Obligation, or (iii) a voluntary disclosure of information related to an outstanding System Obligation. The Recipient must disclose such documents or reports to the State Water Board at the same time such documents or reports are submitted to any dissemination agent, trustee, nationally recognized municipal securities information repository, the Municipal Securities Rulemaking Board’s Electronic Municipal Market Access (EMMA) website or other person or entity.

C.3.22 No Discrimination.
(a) The Recipient must comply with Government Code section 11135 and the implementing regulations (Cal. Code Regs, tit. 2, § 14000 et seq.), including, but not limited to, ensuring that no person is unlawfully denied full and equal access to the benefits of, or unlawfully subjected to discrimination in the operation of, the Project or System on the basis of sex, race, color, religion, ancestry, national origin, ethnic group

City of Yuba City
Agreement No.: D2501020
Project No.: C-06-8682-110

Exhibit C
identification, age, mental disability, physical disability, medical condition, genetic information, marital status, or sexual orientation as such terms are defined under California law, for as long as the Recipient retains ownership or possession of the Project.
(b) If Project Funds are used to acquire or improve real property, the Recipient must include a covenant of nondiscrimination running with the land in the instrument effecting or recording the transfer of such real property.
(c) The Recipient must comply with the federal American with Disabilities Act of 1990 and implementing regulations as required by Government Code section 11135(b). (d) The Recipient’s obligations under this section shall survive the term of this Agreement. (e) During the performance of this Agreement, Recipient and its contractors and subcontractors must not unlawfully discriminate, harass, or allow harassment against any employee or applicant for employment because of sex, race, color, ancestry, religious creed, national origin, sexual orientation, physical disability (including HIV and AIDS), mental disability, medical condition (cancer), age (over 40), marital status, denial of family care leave, or genetic information, gender, gender identity, gender expression, or military and veteran status.
(f) The Recipient, its contractors, and subcontractors must ensure that the evaluation and treatment of their employees and applicants for employment are free from such discrimination and harassment. (g) The Recipient, its contractors, and subcontractors must comply with the provisions of the Fair Employment and Housing Act and the applicable regulations promulgated thereunder. (Gov. Code, §12990, subds. (a)-(f) et seq.;Cal. Code Regs., tit. 2, § 7285 et seq.) Such regulations are incorporated into this Agreement by reference and made a part hereof as if set forth in full. (h) The Recipient, its contractors, and subcontractors must comply with all applicable federal civil rights regulations, including statutory and national policy requirements. (2 CFR § 200.300). (i) The Recipient, its contractors, and subcontractors must give written notice of their obligations under this clause to labor organizations with which they have a collective bargaining or other agreement. (j) The Recipient must include the nondiscrimination and compliance provisions of this clause in all subcontracts to perform work under this Agreement.

C.3.23 No Third Party Rights.

The parties to this Agreement do not create rights in, or grant remedies to, any third party as a beneficiary of this Agreement, or of any duty, covenant, obligation, or undertaking established herein.

C.3.24 No Obligation of the State.

Any obligation of the State Water Board herein contained shall not be an obligation, debt, or liability of the State and any such obligation shall be payable solely out of the moneys encumbered pursuant to this Agreement.

C.3.25 Notice.

Upon the occurrence of any of the following events, the Recipient must provide notice as set forth below.

City of Yuba City
Agreement No.: D2501020
Project No.: C-06-8682-110

Exhibit C
(a) Within 24 hours of the following, the Recipient must notify the Division by phone at (916) 327-9978 and by email to [email protected] and [email protected] and
[email protected] of:
i. The seizure of, or levy on, any Revenues securing this Agreement; ii. Any discovery of any potential tribal cultural resource, archaeological or historical resource, or human remains in the Project area (also notify the Division’s Senior Cultural Resources Officer, at ([email protected]). Should a potential tribal cultural resource or archaeological or historical resource be discovered during construction or Project implementation, the Recipient must ensure that all work in the area of the find will cease until a qualified archaeologist has evaluated the situation and made recommendations regarding preservation of the resource, and the Division has determined what actions should be taken to protect and preserve the resource. The Recipient must implement appropriate actions as directed by the Division. If there are any applicable provisions of a mitigation, monitoring and reporting program adopted for the Project, the Recipient shall comply with such provisions. In the event of the discovery of human remains during construction of the Project, the Recipient shall cease construction and take other action required by any applicable laws, which may include but are not limited to Health and Safety Code, section 7050.5 and Public Resources Code, section 5097.98.
(b) Within five (5) business days, the Recipient must notify the Division by phone at (916) 327-9978; by email to [email protected]
[email protected] and [email protected] and [email protected]; and by mail to the contact address set forth in Section 4 of this Agreement of the occurrence of any of the following events:
i. Bankruptcy, insolvency, receivership or similar event of the Recipient, or actions taken in anticipation of any of the foregoing;
ii. Change of ownership of the Project or the System or change of management or service contracts, if any, for operation of the System; iii. Loss, theft, damage, or impairment to Project, the Revenues or the System; iv. Failure to meet any debt service coverage test in Exhibit B of this Agreement; v. Draws on the Reserve Fund;
vi. Listed Events and Events of Default, except as otherwise set forth in this section; vii. Failure to observe or perform any covenant or comply with any condition in this Agreement;
viii. An offer from a public entity to purchase the Project or the System or any portion thereof, or any of the real or personal property related to or necessary for the Project;
ix. A proceeding or action by a public entity to acquire the Project or the System by power of eminent domain;
x. Incurrence of a System Obligation or other Material Obligation by the Recipient; or
xi. A default, event of acceleration, termination event, modification of terms, or other similar event under the terms of a System Obligation or other Material Obligation of the Recipient, any of which reflect financial difficulties. (c) Within ten (10) business days, the Recipient must notify the Division by phone at (916) 327-9978, by email to [email protected] and [email protected] and [email protected], and by mail to the contact address set forth in Section 4 of this Agreement of the following events:

City of Yuba City
Agreement No.: D2501020
Project No.: C-06-8682-110

Exhibit C
i. Material defaults on Material Obligations, other than this Obligation; ii. Unscheduled draws on material debt service reserves or credit enhancements, reflecting financial difficulties;
iii. Substitution of credit or liquidity providers, if any or their failure to perform; iv. Any litigation pending or threatened with respect to the Project or the Recipient’s technical, managerial or financial capacity to operate the System or the Recipient’s continued existence, or any judgment or court order relating to such litigation that has a significant effect on the Project or the System; v. Circulation of a petition to repeal, reduce, or otherwise challenge the Recipient’s rates for services of the System;
vi. Consideration of dissolution, or disincorporation, or any other event that could materially impair the Revenues;
vii. Adverse tax opinions, the issuance by the Internal Revenue Service or proposed or final determinations of taxability, Notices of Proposed Issue (IRS Form 5701- TEB) or other material notices of determinations with respect to the tax status of any tax-exempt bonds;
viii. Rating changes on outstanding System Obligations, if any; ix. Enforcement actions by or brought on behalf of the State Water Board or Regional Water Board; or
x. Any investigation by the District Attorney, California State Auditor, Bureau of State Audits, USEPA’s Office of Inspector General, the Internal Revenue Service, Securities and Exchange Commission, a grand jury, or any other state or federal agency, relating to the Recipient’s financial management, accounting procedures, or internal fiscal controls;
(d) The Recipient must notify the Division promptly by phone at (916) 327-9978, by email to [email protected] and [email protected] and [email protected], and by mail to the contact address set forth in Section 4 of this Agreement of any of the following events:
i. The discovery of a false statement of fact or representation made in this Agreement or in the application to the Division for this financial assistance, or in any certification, report, or request for reimbursement made pursuant to this Agreement, by the Recipient, its employees, agents, or contractors; ii. Any substantial change in scope of the Project. The Recipient must undertake no substantial change in the scope of the Project until prompt written notice of the proposed change has been provided to the Division and the Division has given written approval for the change;
iii. Cessation of all major construction work on the Project where such cessation of work is expected to or does extend for a period of thirty (30) days or more; iv. Any circumstance, combination of circumstances, or condition, which is expected to or does delay Completion of Construction for a period of ninety (90) days or more;
v. Any disputes related to the Project that may affect the Recipient’s ability to comply with the terms of this Agreement;
vi. Discovery of any unexpected endangered or threatened species, as defined in the federal Endangered Species Act. Should a federally protected species be unexpectedly encountered during construction of the Project, the Recipient agrees to promptly notify the Division. This notification is in addition to the Recipient’s obligations under the federal Endangered Species Act; vii. Any Project monitoring, demonstration, or other implementation activities required in Exhibit A or Exhibit D of this Agreement, if any;

City of Yuba City
Agreement No.: D2501020
Project No.: C-06-8682-110

Exhibit C
viii. Any public or media event publicizing the accomplishments and/or results of this Agreement and provide the opportunity for attendance and participation by state and federal representatives with at least ten (10) working days’ notice to the Division;
ix. Any allegation of research misconduct involving research activities that are supported in whole or in part with USEPA funds under this Project, as required by Exhibit C.4.3(xxvii);
x. Any events requiring notice to the Division pursuant to the provisions of this Agreement;
xi. Completion of Construction of the Project, and actual Project Completion; xii. The award of the prime construction contract for the Project; xiii. Initiation of construction of the Project.

C.3.26 Operation and Maintenance; Insurance.

The Recipient agrees to sufficiently and properly staff, operate and maintain all portions of the System during the Useful Life of the Project in accordance with all applicable state and federal laws, rules, and regulations.

The Recipient will procure and maintain or cause to be maintained insurance on the System with responsible insurers, or as part of a reasonable system of self-insurance, in such amounts and against such risks (including damage to or destruction of the System) as are usually covered in connection with systems similar to the System. Such insurance may be maintained by a self-insurance plan so long as such plan provides for (i) the establishment by the Recipient of a separate segregated self-insurance fund in an amount determined (initially and on at least an annual basis) by an independent insurance consultant experienced in the field of risk management employing accepted actuarial techniques and (ii) the establishment and maintenance of a claims processing and risk management program.

In the event of any damage to or destruction of the System caused by the perils covered by such insurance, the net proceeds thereof shall be applied to the reconstruction, repair or replacement of the damaged or destroyed portion of the System. The Recipient must begin such reconstruction, repair or replacement as expeditiously as possible, and must pay out of such net proceeds all costs and expenses in connection with such reconstruction, repair or replacement so that the same must be completed and the System must be free and clear of all claims and liens. If such net proceeds are insufficient to reconstruct, repair, or restore the System to the extent necessary to enable the Recipient to pay all remaining unpaid principal portions of the Payments, if any, in accordance with the terms of this Agreement, the Recipient must provide additional funds to restore or replace the damaged portions of the System.

Recipient agrees that for any policy of insurance concerning or covering the construction of the Project, it will cause, and will require its contractors and subcontractors to cause, a certificate of insurance to be issued showing the State Water Board, its officers, agents, employees, and servants as additional insured; and must provide the Division with a copy of all such certificates prior to the commencement of construction of the Project.

C.3.27 Permits, Subcontracting, and Remedies.

Recipient must procure all permits, licenses and other authorizations necessary to accomplish the work contemplated in this Agreement, pay all charges and fees, and give all notices necessary and incidental to the due and lawful prosecution of the work. Signed copies of any such permits or licenses must be submitted to the Division before any construction begins.

City of Yuba City
Agreement No.: D2501020
Project No.: C-06-8682-110

Exhibit C
The Recipient must not contract or allow subcontracting with excluded parties. The Recipient must not contract with any party who is debarred or suspended or otherwise excluded from or ineligible for participation in any work overseen, directed, funded, or administered by the State Water Board program for which this funding is authorized. For any work related to this Agreement, the Recipient must not contract with any individual or organization on the State Water Board’s List of Disqualified Businesses and Persons that is identified as debarred or suspended or otherwise excluded from or ineligible for participation in any work overseen, directed, funded, or administered by the State Water Board program for which funding under this Agreement is authorized. The State Water Board’s List of Disqualified Businesses and Persons is located at
http://www.waterboards.ca.gov/water_issues/programs/enforcement/fwa/dbp.shtml C.3.28 Professionals.

The Recipient agrees that only licensed professionals will be used to perform services under this Agreement where such services are called for. All technical reports required pursuant to this Agreement that involve planning, investigation, evaluation, design, or other work requiring interpretation and proper application of engineering, architectural, or geologic sciences, shall be prepared by or under the direction of persons registered to practice in California pursuant to Business and Professions Code, sections 5536.1, 6735, 7835, and 7835.1. To demonstrate compliance with California Code of Regulations, title 16, sections 415 and 3065, all technical reports must contain a statement of the qualifications of the responsible registered professional(s). As required by these laws, completed technical reports must bear the signature(s) and seal(s) of the registered professional(s) in a manner such that all work can be clearly attributed to the professional responsible for the work.

C.3.29 Prevailing Wages.

The Recipient agrees to be bound by all applicable provisions of State Labor Code regarding prevailing wages. The Recipient must monitor all agreements subject to reimbursement from this Agreement to ensure that the prevailing wage provisions of the State Labor Code are being met.

In addition, the Recipient agrees to comply with the Davis-Bacon provisions incorporated by reference in Section 3 of this Agreement.

C.3.30 Public Funding.

This Project is publicly funded. Any service provider or contractor with which the Recipient contracts must not have any role or relationship with the Recipient, that, in effect, substantially limits the Recipient's ability to exercise its rights, including cancellation rights, under the contract, based on all the facts and circumstances.

C.3.31 Recipient’s Responsibility for Work.

The Recipient shall be responsible for all work and for persons or entities engaged in work performed pursuant to this Agreement, including, but not limited to, contractors, subcontractors, suppliers, and providers of services. The Recipient shall be responsible for responding to any and all disputes arising out of its contracts for work on the Project. The State Water Board will not mediate disputes between the Recipient and any other entity concerning responsibility for performance of work.

C.3.32 Records Retention.

The Recipient must maintain separate books, records and other material relative to the Project, including compliance documentation. The Recipient must also retain such books, records, and other material for itself and for each contractor or subcontractor who performed or performs work on this project for a

City of Yuba City
Agreement No.: D2501020
Project No.: C-06-8682-110

Exhibit C
minimum of thirty-six (36) years after Work Completion / Completion of Construction. The Recipient must require that such books, records, and other material are subject at all reasonable times (at a minimum during normal business hours) to inspection, copying, and audit by the State Water Board, the California State Auditor, the Bureau of State Audits, the USEPA, the USEPA’s Office of Inspector General, the Internal Revenue Service, the Governor, or any authorized representatives of the aforementioned. The Recipient must allow and must require its contractors to allow interviews during normal business hours of any employees who might reasonably have information related to such records. The Recipient agrees to include a similar duty regarding audit, interviews, and records retention in any contract or subcontract related to the performance of this Agreement. The provisions of this section survive the term of this Agreement.

C.3.33 Related Litigation.

Under no circumstances may the Recipient use funds from any reimbursement under this Agreement to pay costs associated with any litigation the Recipient pursues against the State Water Board or any Regional Water Quality Control Board. Regardless of the outcome of any such litigation, and notwithstanding any conflicting language in this Agreement, the Recipient agrees to repay all of the disbursed funds plus interest in the event that Recipient does not complete the project.

C.3.34 Rights in Data.

The Recipient agrees that all data, plans, drawings, specifications, reports, computer programs, operating manuals, notes, and other written or graphic work produced in the performance of this Agreement are subject to the rights of the State as set forth in this section. The State shall have the right to reproduce, publish, and use all such work, or any part thereof, in any manner and for any purposes whatsoever and to authorize others to do so. If any such work is copyrightable, the Recipient may copyright the same, except that, as to any work which is copyrighted by the Recipient, the State reserves a royalty-free, nonexclusive, and irrevocable license to reproduce, publish, and use such work, or any part thereof, and to authorize others to do so, and to receive electronic copies from the Recipient upon request.

C.3.35 State Water Board Action; Costs and Attorney Fees.

Any remedy provided in this Agreement is in addition to and not in derogation of any other legal or equitable remedy available to the State Water Board as a result of breach of this Agreement by the Recipient, whether such breach occurs before or after completion of the Project, and exercise of any remedy provided by this Agreement by the State Water Board shall not preclude the State Water Board from pursuing any legal remedy or right which would otherwise be available. In the event of litigation between the parties hereto arising from this Agreement, it is agreed that each party shall bear its own costs and attorney fees.

C.3.36 Timeliness.

Time is of the essence in this Agreement.

C.3.37 Unenforceable Provision.

In the event that any provision of this Agreement is unenforceable or held to be unenforceable, then the parties agree that all other provisions of this Agreement have force and effect and shall not be affected thereby.

City of Yuba City
Agreement No.: D2501020
Project No.: C-06-8682-110

Exhibit C
C.3.38 Venue.

Any action arising out of this Agreement shall be filed and maintained in the Superior Court in and for the County of Sacramento, California.

C.3.39 Waiver and Rights of the State Water Board.

Any waiver of rights by the State Water Board with respect to a default or other matter arising under this Agreement at any time shall not be considered a waiver of rights with respect to any other default or matter. Any rights and remedies of the State Water Board provided for in this Agreement are in addition to any other rights and remedies provided by law.

C.4 MISCELLANEOUS STATE AND FEDERAL REQUIREMENTS
C.4.1 [Reserved.]
C.4.2 State Cross-Cutters.

Recipient represents that, as applicable, it complies and covenants to maintain compliance with the following with respect to all Project Costs for the term of this Agreement:
i. The California Environmental Quality Act (CEQA), as set forth in Public Resources Code 21000 et seq. and in the CEQA Guidelines at Title 14, Division 6, Chapter 3, Section 15000 et seq. ii. Water Conservation requirements, including regulations in Division 3 of Title 23 of the California Code of Regulations.
iii. Monthly Water Diversion Reporting requirements, including requirements set forth in Water Code section 5103.
iv. Public Works Contractor Registration with Department of Industrial Relations requirements, including requirements set forth in Sections 1725.5 and 1771.1 of the Labor Code. v. Volumetric Pricing & Water Meters requirements, including the requirements of Water Code sections 526 and 527.
vi. Urban Water Management Plan requirements, including the Urban Water Management Planning Act (Water Code, § 10610 et seq.).
vii. Urban Water Demand Management requirements, including the requirements of Section 10608.56 of the Water Code.
viii. Delta Plan Consistency Findings requirements, including the requirements of Water Code section 85225 and California Code of Regulations, title 23, section 5002. ix. Agricultural Water Management Plan Consistency requirements, including the requirements of Water Code section 10852.
x. Charter City Project Labor Requirements, including the requirements of Labor Code section 1782 and Public Contract Code section 2503.

City of Yuba City
Agreement No.: D2501020
Project No.: C-06-8682-110

Exhibit C
xi. The Recipient agrees that it will, at all times, comply with and require its contractors and subcontractors to comply with directives or orders issued pursuant to Division 7 of the Water Code.
xii. Regulations in Division 4 of Title 22 of the California Code of Regulations, including but not limited to California Waterworks Standards in Chapter 16, and Lead and Copper regulations in Chapter 17.5.

C.4.3 Federal Requirements and Cross-Cutters for SRF Funding.

The Recipient acknowledges, warrants compliance with, and covenants to continuing compliance with the following federal terms and conditions with respect to all Project Costs for the term of this Agreement and for the Useful Life of the Project:
i. Unless the Recipient has obtained a waiver from USEPA on file with the State Water Board or unless this Project is not a project for the construction, alteration, maintenance or repair of a public water system or treatment work, the Recipient shall not purchase “iron and steel products” produced outside of the United States on this Project. Unless the Recipient has obtained a waiver from USEPA on file with the State Water Board or unless this Project is not a project for the construction, alteration, maintenance or repair of a public water system or treatment work, the Recipient hereby certifies that all “iron and steel products” used in the Project were or will be produced in the United States. For purposes of this section, the term "iron and steel products" means the following products made primarily of iron or steel: lined or unlined pipes and fittings, manhole covers and other municipal castings, hydrants, tanks, flanges, pipe clamps and restraints, valves, structural steel, reinforced precast concrete, and construction materials. “Steel” means an alloy that includes at least 50 percent iron, between .02 and 2 percent carbon, and may include other elements.
ii. The Recipient must include in full the Wage Rate Requirements (Davis-Bacon) language incorporated by reference in Section 3 of this Agreement in all construction contracts and subcontracts.
iii. The Recipient must comply with the signage requirements set forth in Exhibit A. iv. The Recipient shall notify the State Water Board and the USEPA contact of public or media events publicizing the accomplishment of significant events related to this Project and provide the opportunity for attendance and participation by federal representatives with at least ten (10) working days’ notice.
v. The Recipient shall comply with applicable USEPA general terms and conditions found at:
https://www.epa.gov/grants/epa-general-terms-and-conditions-effective-october-1-2024-or-later. vi. No Recipient may receive funding under this Agreement unless it has provided its Unique Entity Identifier, assigned by the System for Award Management, to the State Water Board. vii. The Recipient represents and warrants that it and its principals are not excluded or disqualified from participating in this transaction as such terms are defined in Parts 180 and 1532 of Title 2 of the Code of Federal Regulations (2 CFR). If the Recipient is excluded after execution of this Agreement, the Recipient shall notify the Division within ten (10) days and shall inform the Division of the Recipient’s exclusion in any request for amendment of this Agreement. The Recipient shall comply with Subpart C of Part 180 of 2 CFR, as supplemented by Subpart C of Part 1532 of 2 CFR. Such compliance is a condition precedent to the State Water Board’s performance of its obligations under this Agreement. When entering into a covered transaction

City of Yuba City
Agreement No.: D2501020
Project No.: C-06-8682-110

Exhibit C
as defined in Parts 180 and 1532 of 2 CFR, the Recipient shall require the other party to the covered transaction to comply with Subpart C of Part 180 of 2 CFR, as supplemented by Subpart C of Part 1532 of 2 CFR.
viii. To the extent applicable, the Recipient shall disclose to the State Water Board any potential conflict of interest consistent with USEPA’s Final Financial Assistance Conflict of Interest Policy at https://www.epa.gov/grants/epas-final-financial-assistance-conflict-interest-policy. A conflict of interest may result in disallowance of costs.
ix. USEPA and the State Water Board have the right to reproduce, publish, use and authorize others to reproduce, publish and use copyrighted works or other data developed under this assistance agreement. This includes the right to require the Recipient to make such works available through agency-designated public access repositories.
x. Where an invention is made with Project Funds, USEPA and the State Water Board retain the right to a worldwide, nonexclusive, nontransferable, irrevocable, paid-up license to practice the invention owned by the Recipient. The Recipient must utilize the Interagency Edison extramural invention reporting system at https://www.nist.gov/iedison and shall notify the Division when an invention report, patent report, or utilization report is filed. xi. The Recipient agrees that any reports, documents, publications or other materials developed for public distribution supported by this Agreement shall contain the Disclosure statement set forth in Exhibit A.
xii. The Recipient acknowledges that it is encouraged to follow guidelines established under Section 508 of the Rehabilitation Act, codified at 36 CFR Part 1194, with respect to enabling individuals with disabilities to participate in its programs supported by this Project. xiii. The Recipient, its employees, contractors and subcontractors and their employees warrants that it will not engage in severe forms of trafficking in persons, procure a commercial sex act during the term of this Agreement, use forced labor in the performance of this Agreement, or engage in acts that directly support or advance trafficking in persons, including (i) destroying, concealing, removing, confiscating, or otherwise denying an employee access to that employee’s identity or immigration documents; (ii) failing to provide return transportation or pay for return transportation costs to an employee from a country outside the United States to the country from which the employee was recruited upon the end of employment if request by the employee, unless exempted from the requirement to provide or pay for such return transportation by the Federal department or agency providing or entering into the grant or cooperative agreements or the employee is a victim of human trafficking seeking victim services or legal redress in the country of employment or a witness in a human trafficking enforcement action; (iii) soliciting a person for the purpose of employment, or offering employment, by means of materially false or fraudulent pretenses, representations, or promises regarding that employment; (iv) charging recruited employees a placement or recruitment fee; or (v) providing or arranging housing that fails to meet the host country’s housing and safety standards. The Recipient must include this provision in its contracts and subcontracts under this Agreement. The Recipient must inform the State Water Board immediately of any information regarding a violation of the foregoing. The Recipient understands that failure to comply with this provision may subject the State Water Board to loss of federal funds. The Recipient agrees to compensate the State Water Board for any such funds lost due to its failure to comply with this condition, or the failure of its contractors or subcontractors to comply with this condition. The State Water Board may unilaterally terminate this Agreement if the Recipient that is a private entity is determined to have violated the foregoing.
xiv. The Recipient certifies to the best of its knowledge and belief that:

City of Yuba City
Agreement No.: D2501020
Project No.: C-06-8682-110

Exhibit C
a. No federal appropriated funds have been paid or will be paid, by or on behalf of the Recipient, to any person for influencing or attempting to influence an officer or employee of any agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with the awarding of any federal contract, the making of any federal grant, the making of any federal loan, the entering into of any cooperative agreement, and the extension, continuation, renewal, amendment, or modification of any federal contract, grant, loan, or cooperative agreement. b. If any funds other than federal appropriated funds have been paid or will be paid to any person for influencing or attempting to influence an officer or employee of any agency, a Member of Congress in connection with this Agreement, the Recipient shall complete and submit Standard Form-LLL, “Disclosure Form to Report Lobbying,” in accordance with its instructions, and notify the State Water Board.

The Recipient shall require this certification from all parties to any contract or agreement that the Recipient enters into and under which the Recipient incurs costs for which it seeks reimbursements under this Agreement.
xv. The Recipient must comply with the following federal non-discrimination requirements:
a. Title VI of the Civil Rights Act of 1964, which prohibits discrimination based on race, color, and national origin, including limited English proficiency (LEP). b. Section 504 of the Rehabilitation Act of 1973, which prohibits discrimination against persons with disabilities.
c. The Age Discrimination Act of 1975, which prohibits age discrimination. d. Section 13 of the Federal Water Pollution Control Act Amendments of 1972, which prohibits discrimination on the basis of sex.
e. 40 CFR Part 7, as it relates to the foregoing.
xvi. If the Project relates to construction of a publicly owned treatment works, where the Recipient contracts for program management, construction management, feasibility studies, preliminary engineering, design, engineering, surveying, mapping, or architectural related services, the Recipient shall ensure that any such contract is negotiated in the same manner as a contract for architectural and engineering services is negotiated under chapter 11 of title 40, United States Code, or an equivalent State qualifications-based requirement as determined by the State Water Board.
xvii. If the Project relates to construction of a publicly owned treatment works, the Recipient certifies that it has developed and is implementing a fiscal sustainability plan for the Project, except as set forth in Exhibit D, that includes an inventory of critical assets that are a part of the Project, an evaluation of the condition and performance of inventoried assets or asset groupings, a certification that the Recipient has evaluated and will be implementing water and energy conservation efforts as part of the plan, and a plan for maintaining, repairing, and, as necessary, replacing the Project and a plan for funding such activities. xviii. Procurement Prohibitions under Section 306 of the Clean Air Act and Section 508 of the Clean Water Act, including Executive Order 11738, Administration of the Clean Air Act and the Federal Water Pollution Control Act with Respect to Federal Contracts, Grants, or Loans; 42 USC § 7606; 33 USC § 1368. Except where the purpose of this Agreement is to remedy the cause of the violation, the Recipient may not procure goods, services, or materials from suppliers excluded under the federal System for Award Management: sam.gov
xix. Uniform Relocation and Real Property Acquisition Policies Act, Pub. L. 91-646, as amended; 42 USC §§4601-4655. The Recipient must comply with the Act’s implementing regulations at 49 CFR 24.101 through 24.105.

City of Yuba City
Agreement No.: D2501020
Project No.: C-06-8682-110

Exhibit C
xx. The Recipient agrees that if its network or information system is connected to USEPA networks to transfer data using systems other than the Environmental Information Exchange Network or USEPA’s Central Data Exchange, it will ensure that any connections are secure. xxi. All geospatial data created pursuant to this Agreement that is submitted to the State Water Board for use by USEPA or that is submitted directly to USEPA must be consistent with Federal Geographic Data Committee endorsed standards. Information on these standards may be found at www.fgdc.gov.
xxii. If the Recipient is a water system that serves 500 or fewer persons, the Recipient represents that it has considered publicly-owned wells as an alternative drinking water supply. xxiii. The Recipient represents that it is not a corporation that has any unpaid Federal tax liability that has been assessed, for which all judicial and administrative remedies have been exhausted or have lapsed, and that is not being paid in a timely manner pursuant to an agreement with the authority responsible for collecting the tax liability; and it is not a corporation that was convicted of a felony criminal violation under a Federal law within the preceding 24 months. xxiv. The Recipient agrees to immediately notify the Project Manager in writing about any allegation of research misconduct involving research activities that are supported in whole or in part with USEPA funds under this Project, including fabrication, falsification, or plagiarism in proposing, performing, or reviewing research, or in reporting research results, or ordering, advising, or suggesting that subordinates engage in research misconduct. xxv. The Recipient agrees to comply with, and require all contractors and subcontractors to comply with, USEPA’s Scientific Integrity Policy, available at https://www.epa.gov/osa/policy-epascientific-integrity, when conducting, supervising, and communicating science and when using or applying the results of science. For purposes of this condition scientific activities include, but are not limited to, computer modelling, economic analysis, field sampling, laboratory experimentation, demonstrating new technology, statistical analysis, and writing a review article on a scientific issue.

The Recipient shall not suppress, alter, or otherwise impede the timely release of scientific findings or conclusions; intimidate or coerce scientists to alter scientific data, findings, or professional opinions or exert non-scientific influence on scientific advisory boards; knowingly misrepresent, exaggerate, or downplay areas of scientific uncertainty; or otherwise violate the USEPA’s Scientific Integrity Policy. The Recipient must refrain from acts of research misconduct, including publication or reporting, as described in USEPA’s Policy and Procedures for Addressing Research Misconduct, Section 9.C, and must ensure scientific findings are generated and disseminated in a timely and transparent manner, including scientific research performed by contractors and subcontractors.
xxvi. The Recipient agrees to comply with the Animal Welfare Act of 1966 (7 USC 2131-2156).

Recipient also agrees to abide by the “U.S. Government Principles for the Utilization and Care of Vertebrate Animals used in Testing, Research, and Training,” available at http://grants.nih.gov/grants/olaw/references/phspol.htm#USGovPrinciples. xxvii. The Recipient certifies that no Project Funds will be used on:
a. Telecommunications equipment produced by Huawei Technologies Company or ZTE Corporation (or any subsidiary or affiliate of such entities), telecommunications or video surveillance equipment produced by Hytera Communications Corporation, Hangzhou

City of Yuba City
Agreement No.: D2501020
Project No.: C-06-8682-110

Exhibit C
Hikvision Digital Technology Company, or Dahua Technology Company (or any subsidiary or affiliate of such entities);
b. Telecommunications or video surveillance services provided by such entities or using such equipment;
c. Telecommunications or video surveillance equipment or services produced or provided by an entity that the Secretary of Defense, in consultation with the Director of the National Intelligence or the Director of the Federal Bureau of Investigation, reasonably believes to be an entity owned or controlled by, or otherwise connected to, the government of a covered foreign country;
d. Systems that use covered telecommunications equipment or services as a substantial or essential component of any system, or as critical technology as part of any system; or e. Other telecommunications or video surveillance services or equipment in violation of 2 CFR 200.216.

City of Yuba City
Agreement No.: D2501020
Project No.: C-06-8682-110

Exhibit D
EXHIBIT D – SPECIAL CONDITIONS
D.1 ENVIRONMENTAL SPECIAL CONDITIONS

1. The documents identified below are incorporated by reference and the Recipient shall comply with the conditions and recommendations therein:
a. The letter dated March 16, 2023, from Megan Cook of the United States Fish and Wildlife Service, Sacramento Division (USFWS) to Oren Ruffcorn of the United States Army Corps of Engineers (USACE).
b. The Biological Opinion dated February 7, 2023, from Cathy Marcinkevage of the National Oceanic and Atmospheric Administration, Marine Fisheries Service (NMFS) to Matthew Roberts of the USACE).
c. The Mitigation Monitoring and Reporting Program adopted by the City of Yuba on March 15, 2022, for the Project.

2. The Recipient shall make no changes to the Project, construction area, or special conditions, without obtaining the appropriate and necessary prior approvals from the State Water Board, the NMFS, the USFWS, and the USACE.

3. The Recipient shall provide notice to the CWSRF Program at [email protected] or (916) 327-9978 within 24 hours of the discovery of any potential tribal cultural resource and/or archaeological or historical resource, and shall notify the Division promptly upon the discovery of any unexpected endangered or threatened species, as defined in the federal Endangered Species Act. For additional requirements, please refer to Exhibit C of this Agreement.

REPORTING TO THE STATE WATER BOARD

1. In the Recipient’s Progress Reports and the Project Completion Report, submitted pursuant to this Agreement, the Recipient shall include a discussion of the status of its compliance with all environmental measures identified in this Exhibit D, with separate sections clearly labeled with section titles, discussing the status of Recipient’s compliance with:- a. Conservation Measures 1 through 5 in the letter from the USFWS, b. Reasonable and Prudent Measures 1 through 5 in the Biological Opinion from the NMFS, c. The Mitigation Monitoring and Reporting Program water quality measures adopted for the Project.
i. BIO-4 for biological resources, and
ii. HAZ-1 for hazards and hazardous materials
D.2 TECHNICAL SPECIAL CONDITIONS
a. The Recipient shall work diligently to acquire all Post-Execution Property Rights. By Final Budget Approval, the Recipient must deliver an opinion of counsel satisfactory to the Division’s counsel that the Recipient has sufficient property rights in the Project property, including the PostExecution Property Rights, for the purposes contemplated in the Agreement and has complied with the requirements of the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970 (42 U.S.C. 4601) with respect to any property acquired for the purposes of

City of Yuba City
Agreement No.: D2501020
Project No.: C-06-8682-110

Exhibit D
the Project. No funds will be disbursed under this Agreement until the Recipient satisfies this condition.

D.3 Executive Order N-6-22 — Russian Sanctions.

On March 4, 2022, Governor Gavin Newsom issued Executive Order N-6-22 (the EO) regarding Economic Sanctions against Russia and Russian entities and individuals. “Economic Sanctions” refers to sanctions imposed by the U.S. government in response to Russia’s actions in Ukraine, as well as any sanctions imposed under state law. The EO directs state agencies to terminate contracts with, and to refrain from entering any new contracts with, individuals or entities that are determined to be a target of Economic Sanctions. Accordingly, should the State Water Board determine Recipient is a target of Economic Sanctions or is conducting prohibited transactions with sanctioned individuals or entities, that shall be grounds for termination of this Agreement. The State Water Board shall provide Recipient advance written notice of such termination, allowing Recipient at least 30 calendar days to provide a written response. Termination shall be at the sole discretion of the State Water Board.

The Recipient represents that the Recipient is not a target of economic sanctions imposed in response to Russia’s actions in Ukraine imposed by the United States government or the State of California. The Recipient is required to comply with the economic sanctions imposed in response to Russia’s actions in Ukraine, including with respect to, but not limited to, the federal executive orders identified in California Executive Order N-6-22, located at https://www.gov.ca.gov/wp-content/uploads/2022/03/3.4.22-RussiaUkraine-Executive-Order.pdf and the sanctions identified on the United States Department of the Treasury website (https://home.treasury.gov/policy-issues/financial-sanctions/sanctions-programs-andcountry-information/ukraine-russia-related-sanctions). The Recipient is required to comply with all applicable reporting requirements regarding compliance with the economic sanctions, including, but not limited to, those reporting requirements set forth in California Executive Order N-6-22 for all Recipients with one or more agreements with the State of California with an aggregated value of Five Million Dollars ($5,000,000) or more. Notwithstanding any other provision in this Agreement, failure to comply with the economic sanctions and all applicable reporting requirements may result in termination of this Agreement.

For Recipients with an aggregated agreement value of Five Million Dollars ($5,000,000) or more with the State of California, reporting requirements include, but are not limited to, information related to steps taken in response to Russia’s actions in Ukraine, including but not limited to:

1. Desisting from making any new investments or engaging in financial transactions with Russian institutions or companies that are headquartered or have their principal place of business in Russia;

2. Not transferring technology to Russia or companies that are headquartered or have their principal place of business in Russia; and

3. Direct support to the government and people of Ukraine.

City of Yuba City
Agreement No.: D2501020
Project No.: C-06-8682-110

Exhibit E
EXHIBIT E – PAYMENT SCHEDULE
See the attached preliminary Payment Schedule, which may be updated as discussed in Exhibit B. The final Payment Schedule will be forwarded to the Recipient after all disbursements have been paid and construction of the Project has been completed.

City of Yuba City
Agreement No.: D2501020
Project No.: C-06-8682-110

Exhibit F
EXHIBIT F – TAX CERTIFICATE
F.1 Purpose.

The purpose of this Exhibit F is to establish the reasonable expectations of the Recipient regarding the Project and the Project Funds, and is intended to be and may be relied upon for purposes of Sections 103, 141 and 148 of the Code and as a certification described in Section 1.148-2(b)(2) of the Treasury Regulations. This Exhibit F sets forth certain facts, estimates and circumstances which form the basis for the Recipient’s expectation that neither the Project nor the Bond Funded Portion of the Project Funds is to be used in a manner that would cause the Obligation to be classified as “arbitrage bonds” under Section 148 of the Code or “private activity bonds” under Section 141 of the Code.

F.2 Tax Covenant.

The Recipient agrees that it will not take or authorize any action or permit any action within its reasonable control to be taken, or fail to take any action within its reasonable control, with respect to the Project which would result in the loss of the exclusion of interest on the Bonds from gross income for federal income tax purposes under Section 103 of the Code.

F.3 Governmental Unit.

The Recipient is a state or local governmental unit as defined in Section 1.103-1 of the Treasury Regulations or an instrumentality thereof (a "Governmental Unit") and is not the federal government or any agency or instrumentality thereof.

F.4 Financing of a Capital Project.

The Recipient will use the Project Funds to finance capital expenditures it has incurred or will incur for the construction, reconstruction, installation or acquisition of the Project in accordance with the terms of this Agreement. Such expenditures shall not have previously been financed with the proceeds of any other issue of indebtedness except for interim financing by the Recipient, the date of maturity, prepayment or redemption of which is within thirty (30) days of the date of disbursement of Project Funds under this Agreement. All Project Funds shall be allocated to expenditures by the Recipient within thirty (30) days of the date of disbursement, including (if at all) Project Funds allocated to repay interim financing of the Recipient. For purposes of this Section F.4, “interim financing” means notes, commercial paper, loans, lines of credit and other forms of short-term borrowing.

F.5 Ownership and Operation of Project.

The Recipient exclusively owns and, except as provided in Section F.12 hereof, operates the Project.

F.6 Temporary Period.

The Recipient reasonably expects that at least eighty-five percent (85%) of the Bond Funded Portion of the Project Funds will be allocated to expenditures for the Project within three (3) years of the earlier of the effective date of this Agreement or the date the Bonds are issued ("Applicable Date"). The Recipient has incurred, or reasonably expects that it will incur within six (6) months of the Applicable Date, a substantial binding obligation (i.e., not subject to contingencies within the control of the Recipient or a related party) to a third party to expend at least five percent (5%) of the Bond Funded Portion of the Project Funds on Project Costs. The completion of acquisition, construction, improvement and equipping

City of Yuba City
Agreement No.: D2501020
Project No.: C-06-8682-110

Exhibit F
of the Project and the allocation of the Bond Funded Portion of the Project Funds to Project Costs will proceed with due diligence.

F.7 Working Capital.

No operational expenditures of the Recipient or any related entity are being, have been or will be financed or refinanced with Project Funds.

F.8 Expenditure of Proceeds.

The Bond Funded Portion of the Project Funds shall be used exclusively for the following purposes: (i) Reimbursement Expenditures (as defined in Section F.20 below), (ii) Preliminary Expenditures (as defined in Section F.20 below) in an aggregate amount not exceeding twenty percent (20%) of the Bond Funded Portion of the Project Funds, (iii) capital expenditures relating to the Project originally paid by the Recipient on or after the date hereof, (iv) interest on the Obligation through the later of three (3) years after the Applicable Date or one (1) year after the Project is placed in service, and (v) initial operating expenses directly associated with the Project in the aggregate amount not more than five percent (5%) of the Bond Funded Portion of the Project Funds.

F.9 Private Use and Private Payments.

No portion of the Project Funds or the Project is being, has been or will be used in the aggregate for any activities that constitute a Private Use (as defined below). No portion of the principal of or interest with respect to the Payments will be secured by any interest in property (whether or not the Project) used for a Private Use or in payments in respect of property used for a Private Use, or will be derived from payments in respect of property used for a Private Use. "Private Use" means any activity that constitutes a trade or business that is carried on by persons or entities, other than a Governmental Unit. The leasing of the Project or the access by or the use of the Project by a person or entity other than a Governmental Unit on a basis other than as a member of the general public shall constitute a Private Use. Use by or on behalf of the State of California or any of its agencies, instrumentalities or subdivisions or by any local Governmental Unit and use as a member of the general public will be disregarded in determining whether a Private Use exists. Use under an arrangement that conveys priority rights or other preferential benefits is generally not use on the same basis as the general public. Arrangements providing for use that is available to the general public at no charge or on the basis of rates that are generally applicable and uniformly applied do not convey priority rights or other preferential benefits. For this purpose, rates may be treated as generally applicable and uniformly applied even if (i) different rates apply to different classes of users, such as volume purchasers, if the differences in rates are customary and reasonable; or (ii) a specially negotiated rate arrangement is entered into, but only if the user is prohibited by federal law from paying the generally applicable rates, and the rates established are as comparable as reasonably possible to the generally applicable rates. An arrangement that does not otherwise convey priority rights or other preferential benefits is not treated, nevertheless, as general public use if the term of the use under the arrangement, including all renewal options, is greater than 200 days. For this purpose, a right of first refusal to renew use under the arrangement is not treated as a renewal option if (i) the compensation for the use under the arrangement is redetermined at generally applicable, fair market value rates that are in effect at the time of renewal; and (ii) the use of the financed property under the same or similar arrangements is predominantly by natural persons who are not engaged in a trade or business.

F.10 No Sale, Lease or Private Operation of the Project.

The Project (or any portion thereof) will not be sold or otherwise disposed of, in whole or in part, to any person who is not a Governmental Unit prior to the final maturity date of the Obligation. The Project will not be leased to any person or entity that is not a Governmental Unit prior to the final maturity date of the Obligation. Except as permitted under Section F.12 hereof, the Recipient will not enter any contract or

City of Yuba City
Agreement No.: D2501020
Project No.: C-06-8682-110

Exhibit F
arrangement or cause or permit any contract or arrangement to be entered with persons or entities that are not Governmental Units if that contract or arrangement would confer on such persons or entities any right to use the Project on a basis different from the right of members of the general public. The contracts or arrangements contemplated by the preceding sentence include but are not limited to management contracts, take or pay contracts or put or pay contracts, and capacity guarantee contracts.

F.11 No Disproportionate or Unrelated Use.

No portion of the Project Funds or the Project is being, has been, or will be used for a Private Use that is unrelated or disproportionate to the governmental use of the Project Funds.

F.12 Management and Service Contracts.

The Recipient represents that, as of the date hereof, it is not a party to any contract, agreement or other arrangement with any persons or entities engaged in a trade or business (other than Governmental Units) that involve the management or operation of property or the provision of services at or with respect to the Project that does not comply with the standards of the Treasury Regulations, or Revenue Procedure 2017-13, as applicable. The Recipient represents that it will not be party to any such contract, agreement or arrangement with any person or entity that is not a Governmental Unit for the management of property or the provision of services at or with respect to the Project, while the Obligation (including any obligation or series thereof issued to refund the Obligation, as the case may be) is outstanding, except: (a) with respect to any contract, agreement or arrangement that does not constitute “private business use” of the Project under Code §141(b), or (b) with respect to any contract, agreement or arrangement that complies with (i) Revenue Procedure 97-13, 1997-1 C.B. 632, as amended by Revenue Procedure 2001-39, 2001- 2 C.B. 38, and as amplified by Notice 2014-67, with respect to contracts entered into before August 18, 2017 and not materially modified or extended after August 18, 2017, or (ii) Revenue Procedure 2017-13, with respect to contracts entered into or materially modified or extended on or after August 18, 2017, or (c) with respect to any contract, agreement or arrangement that does not give rise to use of the Bond Funded Portion of the Project Funds or the Project by a non-Governmental Unit of more than the amount of such non-qualified use permitted by the Code, or (d) in the event that the Recipient receives an opinion of counsel, satisfactory to the State Water Board and the Bank and expert in the issuance of state and local government bonds the interest on which is excluded from gross income under Section 103 of the Code (“Nationally-Recognized Bond Counsel”), that such contract, agreement or arrangement will not adversely affect the exclusion of the interest on the Obligation from gross income for federal income taxation purposes.

F.13 No Disposition of Financed Property.

As of the date hereof, the Recipient does not expect to sell or otherwise dispose of any portion of the Project, in whole or in part, prior to the final maturity date of the Obligation.

F.14 Useful Life of Project.

As of the date hereof, the Recipient reasonably expects that the economic useful life of the Project, commencing at Project Completion, will be at least equal to the term of this Agreement, as set forth in Exhibit A hereto.

F.15 Payments.

Payments generally are expected to be derived from assessments, taxes, fees, charges or other current Revenues of the Recipient in each year, and such current Revenues are expected to equal or exceed the Payments during each payment period. Any amounts accumulated in a sinking fund or bona fide debt service fund to pay Payments (whether or not deposited to a fund or account established by the Recipient) will be disbursed to pay Payments within thirteen months of the initial date of accumulation or

City of Yuba City
Agreement No.: D2501020
Project No.: C-06-8682-110

Exhibit F
deposit. Any such fund used for the payment of Payments will be depleted once a year except for a reasonable carryover amount not exceeding the greater of earnings on such fund or one-twelfth of the Payments in either case for the immediately preceding year.

F.16 No Other Replacement Proceeds.

The Recipient will not use any of the Bond Funded Portion of the Project Funds to replace or substitute other funds of the Recipient that were otherwise to be used to finance the Project or which are or will be used to acquire securities, obligations or other investment property reasonably expected to produce a yield that is materially higher than the yield on the Bonds.

F.17 No Sinking or Pledged Fund.

Except as set forth in Section F.18 below, the Recipient will not create or establish any sinking fund or pledged fund which will be used to pay Payments on the Obligation within the meaning of Section 1.148- 1(c) of the Treasury Regulations. If any sinking fund or pledged fund comes into being with respect to the Obligation before the Obligation has been fully retired which may be used to pay the Payments, the Recipient will invest such sinking fund and pledged fund moneys at a yield that does not exceed the yield on the Bonds.

F.18 Reserve Amount.

The State Water Board requires that the Recipient maintain and fund a separate account in an amount equal to one (1) year of debt service with respect to the Obligation (the “Reserve Amount”) as set forth in Exhibit B. The Recipient represents that the Reserve Amount is and will be available to pay debt service with respect to the Obligation, if and when needed. The Reserve Amount consists solely of revenues of the Recipient and does not include any proceeds of any obligations the interest on which is excluded from gross income for federal income tax purposes or investment earnings thereon. The aggregate of the Reserve Amount, up to an amount not exceeding the lesser of (i) ten percent of the aggregate principal amount of the Obligation, (ii) the maximum annual debt service with respect to the Obligation, or (iii) 125 percent of the average annual debt service with respect to the Obligation, will be treated as a reasonably required reserve fund.

F.19 Reimbursement Resolution.

The “reimbursement resolution” adopted by the Recipient is incorporated herein by reference.

F.20 Reimbursement Expenditures.

Reimbursements are disallowed, except as specifically authorized in Exhibit B or Exhibit D of this Agreement. To the extent so authorized, a portion of the Bond Funded Portion of the Project Funds may be applied to reimburse the Recipient for Project Costs paid before the date hereof, so long as the Project Cost was (i) not paid prior to sixty (60) days before the Recipient’s adoption of a declaration of official intent to finance the Project, (ii) not paid more than eighteen (18) months prior to the date hereof or the date the Project was placed-in-service, whichever is later, and (iii) not paid more than three (3) years prior to the date hereof (collectively, “Reimbursement Expenditures”), unless such cost is attributable to a “preliminary expenditure.” Preliminary expenditure for this purpose means architectural, engineering, surveying, soil testing and similar costs incurred prior to the commencement of construction or rehabilitation of the Project, but does not include land acquisition, site preparation and similar costs incident to the commencement of acquisition, construction or rehabilitation of the Project. Preliminary expenditures may not exceed 20% of the Bond Funded Portion of the Project Funds.

City of Yuba City
Agreement No.: D2501020
Project No.: C-06-8682-110

Exhibit F
F.21 Change in Use of the Project.

The Recipient reasonably expects to use all of the Bond Funded Portion of the Project Funds and the Project for the entire stated term to maturity of the Obligation. Absent an opinion of NationallyRecognized Bond Counsel to the effect that such use of the Bond Funded Portion of the Project Funds will not adversely affect the exclusion from federal gross income of interest on the Bonds pursuant to Section 103 of the Code, the Recipient will use the Bond Funded Portion of the Project Funds and the Project solely as set forth in this Agreement.

F.22 Rebate Obligations.

If the Recipient satisfies the requirements of one of the spending exceptions to rebate specified in Section

1.148-7 of the Treasury Regulations, amounts earned from investments, if any, acquired with the Bond Funded Portion of the Project Funds will not be subject to the rebate requirements imposed under Section 148(f) of the Code. If the Recipient fails to satisfy such requirements for any period, it will notify the State Water Board and the Bank immediately and will comply with the provisions of the Code and the Treasury Regulations at such time, including the payment of any rebate amount calculated by the State Water Board or the Bank.

F.23 No Federal Guarantee.

The Recipient will not directly or indirectly use any of the Bond Funded Portion of the Project Funds in any manner that would cause the Bonds to be "federally guaranteed" within the meaning of Section 149(b) of the Code, taking into account various exceptions including any guarantee related to investments during an initial temporary period until needed for the governmental purpose of the Bonds, investments as part of a bona fide debt service fund, investments of a reasonably required reserve or replacement fund, investments in bonds issued by the United States Treasury, investments in refunding escrow funds or certain other investments permitted under the Treasury Regulations.

F.24 Amendments.

The provisions in this Exhibit may be amended, modified or supplemented at any time to reflect changes in the Code upon obtaining written approval of the State Water Board and the Bank and an opinion of Nationally-Recognized Bond Counsel to the effect that such amendment, modification or supplement will not adversely affect the exclusion from federal gross income of interest on the Bonds pursuant to Section 103 of the Code.

F.25 Reasonable Expectations.

The Recipient warrants that, to the best of its knowledge, information and belief, and based on the facts and estimates as set forth in the tax covenants in this Exhibit, the expectations of the Recipient as set forth in this Exhibit are reasonable. The Recipient is not aware of any facts or circumstances that would cause it to question the accuracy or reasonableness of any representation made in the provisions in this Exhibit.

F.26 Assignment.

The Recipient consents to any pledge, sale, or assignment to the Bank or a trustee for the benefit of the owners of the Bonds, if any, at any time of any portion of the State Water Board's estate, right, title, and interest and claim in, to and under this Agreement and the right to make all related waivers and agreements in the name and on behalf of the State Water Board, as agent and attorney-in-fact, and to perform all other related acts which are necessary and appropriate under this Agreement, if any, and the State Water Board's estate, right, title, and interest and claim in, to and under this Agreement to

City of Yuba City
Agreement No.: D2501020
Project No.: C-06-8682-110

Exhibit F
Payments (but excluding the State Water Board's rights to Additional Payments and to notices, opinions and indemnification under each Obligation).

California CWSRF Payment Schedule
Project No. 8682-110 - Yuba City, City of
Agreement: D2501020 - based on Actual + Projected Disbursements Wastewater Treatment Facility Outfall and Diffuser Project Interest rate: 2.20000%
Principal is paid over: 30 Years
Ref
Num
Due
Date
Date
Received Principal Payment
Interest
Rate%
Interest
Payment
Total P and I
Payment
Total
Payment
Ending
Balance
CPI
Interest
1 7/31/2030 1,235,040.16 2.200 1,057,404.09 2,292,444.25 2,292,444.25 48,764,959.84 0.00 2 7/31/2031 1,219,615.13 2.200 1,072,829.12 2,292,444.25 2,292,444.25 47,545,344.71 0.00 3 7/31/2032 1,246,446.67 2.200 1,045,997.58 2,292,444.25 2,292,444.25 46,298,898.04 0.00 4 7/31/2033 1,273,868.49 2.200 1,018,575.76 2,292,444.25 2,292,444.25 45,025,029.55 0.00 5 7/31/2034 1,301,893.60 2.200 990,550.65 2,292,444.25 2,292,444.25 43,723,135.95 0.00 6 7/31/2035 1,330,535.26 2.200 961,908.99 2,292,444.25 2,292,444.25 42,392,600.69 0.00 7 7/31/2036 1,359,807.03 2.200 932,637.22 2,292,444.25 2,292,444.25 41,032,793.66 0.00 8 7/31/2037 1,389,722.79 2.200 902,721.46 2,292,444.25 2,292,444.25 39,643,070.87 0.00 9 7/31/2038 1,420,296.69 2.200 872,147.56 2,292,444.25 2,292,444.25 38,222,774.18 0.00 10 7/31/2039 1,451,543.22 2.200 840,901.03 2,292,444.25 2,292,444.25 36,771,230.96 0.00 11 7/31/2040 1,483,477.17 2.200 808,967.08 2,292,444.25 2,292,444.25 35,287,753.79 0.00 12 7/31/2041 1,516,113.67 2.200 776,330.58 2,292,444.25 2,292,444.25 33,771,640.12 0.00 13 7/31/2042 1,549,468.17 2.200 742,976.08 2,292,444.25 2,292,444.25 32,222,171.95 0.00 14 7/31/2043 1,583,556.47 2.200 708,887.78 2,292,444.25 2,292,444.25 30,638,615.48 0.00 15 7/31/2044 1,618,394.71 2.200 674,049.54 2,292,444.25 2,292,444.25 29,020,220.77 0.00 16 7/31/2045 1,653,999.39 2.200 638,444.86 2,292,444.25 2,292,444.25 27,366,221.38 0.00 17 7/31/2046 1,690,387.38 2.200 602,056.87 2,292,444.25 2,292,444.25 25,675,834.00 0.00 18 7/31/2047 1,727,575.90 2.200 564,868.35 2,292,444.25 2,292,444.25 23,948,258.10 0.00 19 7/31/2048 1,765,582.57 2.200 526,861.68 2,292,444.25 2,292,444.25 22,182,675.53 0.00 20 7/31/2049 1,804,425.39 2.200 488,018.86 2,292,444.25 2,292,444.25 20,378,250.14 0.00 21 7/31/2050 1,844,122.75 2.200 448,321.50 2,292,444.25 2,292,444.25 18,534,127.39 0.00 22 7/31/2051 1,884,693.45 2.200 407,750.80 2,292,444.25 2,292,444.25 16,649,433.94 0.00 23 7/31/2052 1,926,156.70 2.200 366,287.55 2,292,444.25 2,292,444.25 14,723,277.24 0.00 24 7/31/2053 1,968,532.15 2.200 323,912.10 2,292,444.25 2,292,444.25 12,754,745.09 0.00 25 7/31/2054 2,011,839.86 2.200 280,604.39 2,292,444.25 2,292,444.25 10,742,905.23 0.00 26 7/31/2055 2,056,100.33 2.200 236,343.92 2,292,444.25 2,292,444.25 8,686,804.90 0.00 27 7/31/2056 2,101,334.54 2.200 191,109.71 2,292,444.25 2,292,444.25 6,585,470.36 0.00 28 7/31/2057 2,147,563.90 2.200 144,880.35 2,292,444.25 2,292,444.25 4,437,906.46 0.00 29 7/31/2058 2,194,810.31 2.200 97,633.94 2,292,444.25 2,292,444.25 2,243,096.15 0.00 30 7/31/2059 2,243,096.15 2.200 49,348.12 2,292,444.27 2,292,444.27 0.00 0.00 50,000,000.00 18,773,327.52 68,773,327.52 68,773,327.52 0.00

[FORM OF OPINION OF GENERAL COUNSEL - REPAYABLE]
[Insert your letterhead]
[DATE]
State Water Resources Control Board
Division of Financial Assistance
Attn: Anabel Ruiz
1001 I St., 16th floor
Sacramento, CA 95814
Re: [Insert Name of Applicant] (“City/County/District”) – [Name of Project] – Project No.[xxxxxxxxxxx] (“Project”) – Agreement No. [XXXXXXXXXXXXX] (“Agreement”)
Ladies and Gentlemen:

This firm serves as General Counsel to the [City/County/District] in connection with the Project. This opinion is delivered to the State Water Resources Control Board (“State Water Board”) at the request of the [City/County/District]. In connection therewith, I have examined the laws pertaining to the [City/County/District], originals of the Agreement, between the [City/County/District] and the State Water Board (“Agreement”), the [City/County/District]’s authorized representative resolution [number] adopted on [DATE], the [City/County/District]’s authorizing resolution [xxx] adopted on [DATE], the [City/County/District]’s reimbursement resolution [number] adopted on [DATE], the [City/County/District]’s rate-setting resolution [number] adopted on [DATE], (collectively, “the Resolutions”), the [City/County/District]’s debt management policy, documents related to each of the Material Obligations as set forth in the Agreement, and such other documents, legal opinions, instruments and records, and have made such investigation of law, as I have considered necessary or appropriate for the purpose of this opinion.

Based on the foregoing, it is my opinion that:
a. The [City/County/District], a [general law city/charter city/county/special district/joint powers authority] of the State of California duly organized, validly existing under the laws of the State of California pursuant to [INSERT SPECIFIC LEGAL AUTHORITY], has the requisite legal right, power, and authority to execute and deliver the Agreement and carry out and consummate all transactions contemplated therein.
[and if charter city] [The [City/County/District] is a charter city, the governing board of which is not prohibited, limited or constrained in any way from adopting, requiring, or utilizing a project labor agreement that includes all taxpayer protection provisions of Public Contract Code section 2500.]
[AND IF JOINT POWERS AUTHORITY][None of the
[City/County/District]’s member charter cities is prohibited, limited or constrained in any way from adopting, requiring, or utilizing a project labor agreement that includes all taxpayer protection

provisions of Public Contract Code section 2500.]
b. The Resolutions have been duly adopted at meetings of the [City/County/District] which were called and held pursuant to law with all public notice required by law and at which a quorum was present and acting when the Resolutions were adopted. The Resolutions are in full force and effect and have not been amended, modified, supplemented, or rescinded, nor has the rate-setting resolution been challenged or the rates become subject of a referendum or initiative or other similar process.
c. To the best of my knowledge and based upon a reasonable investigation, all proceedings required by law or under the ordinances or bylaws of the [City/County/District] to be taken by the [City/County/District] in connection with the authorization of the Agreement and the transactions contemplated by and related thereto, and all such approvals, authorizations, consents or other orders of or filings or registrations with such public boards or bodies, if any, as may be legally required to be obtained by the [City/County/District] prior to the date hereof with respect to all or any of such matters have been taken or obtained and are in full force and effect, except that no opinion is expressed as to any approvals, obligations or proceedings which may be required under any federal securities laws or state blue sky or securities laws.
d. To the best of my knowledge and based upon a reasonable investigation, the execution and delivery of the Agreement and the consummation of the transactions therein will not conflict with or constitute a breach of or default (with due notice or the passage of time or both) under (i) the statutes creating the
[City/County/District]or any amendments thereto, (ii) the ordinances or by laws of the [City/County/District], (iii) any bond, debenture, note or other evidence of indebtedness, or any material contract, agreement or lease to which the [City/County/District] is a party or by which it or its properties are otherwise subject or bound or (iv) any applicable law or administrative regulation or any applicable court or administrative decree or order.
e. To the best of my knowledge and based upon a reasonable investigation, the [City/County/District] has sufficient property rights in the Project property for the purposes contemplated in the Agreement and has complied with the requirements ofthe Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970 (42 U.S.C. 4601) with respect to any property acquired for the purposes of theProject. Project property rights extend/s in perpetuity/until [date].
f. To the best of my knowledge and based upon a reasonable investigation, there is no action, suit, proceeding, inquiry or investigation before or by any court of federal, state, municipal or other governmental authority pending or threatened against or affecting the [City/County/District]’s System, as defined in the Agreement, or the assets, properties or operations of the [City/County/District] relating to its System which, if determined

adversely to the [City/County/District] or its interests would result in any material change in the assets or financial condition of the [City/County/District], the [City/County/District]’s System or the financial condition thereof, and the [City/County/District] is not in default with respect to any order or decree of any court or any order, regulation, or demand of any federal, state, municipal, or other governmental agency which default might have consequences that would materially and adversely affect the financial condition of the [City/County/District] or its System.
g. No facts have come to my attention which lead me to believe that the [City/County/District]’s authorized representative has made any untrue statement of a material fact or omitted or omits to state a material fact or has made misleading statements in the Agreement. h. The Agreement has been duly authorized, executed, and delivered, and assuming due authorization, execution and delivery of the Agreement by the State Water Board, constitutes legal, valid, and binding obligation of the [City/County/District] enforceable against the [City/County/District] in accordance with its terms, subject to the laws relating to bankruptcy, insolvency, reorganization, or creditors’ rights generally and to the application of equitable principles, if equitable remedies are sought.

Sincerely,
General Counsel
[City/County/District]

TO BE REPRODUCED ON LETTER OF

JONES HALL, LLP, AS BOND COUNSEL TO THE CITY
_________, 2025
State Water Resources Control Board
Division of Financial Assistance
Attn: Anabel Ruiz
1001 I Street, 16th Floor
Sacramento, California 95814
Re: City of Yuba City
Outfall and Diffuser Project
CWSRF Project No.

Ladies and Gentlemen:

We have acted as Bond Counsel to the City of Yuba City (the “City”)” in connection with the execution and delivery by the City of the Construction Installment Sale Agreement, Agreement No. ____________ (the “Installment Sale Agreement”) between the City and the California State Water Resources Control Board (the “State Water Board”). This opinion is being delivered to the State Water Board at the request of the City.

In connection therewith, we have reviewed originals of the Installment Sale Agreement; the resolutions adopted by the City Council of the City authorizing the execution and delivery of the Installment Sale Agreement, expressing the City Council’s intention to reimburse certain expenditures from the proceeds of the Installment Sale Agreement and pledging revenues and funds to the repayment of the City’s obligations thereunder; the documents related to each of the Material Obligations (as such term is defined in the Installment Sale Agreement); the City’s tax questionnaire dated May 1, 2025; and such other documents, legal opinions, instruments and records, and have made such investigation of law, as we have considered necessary or appropriate for the purpose of this opinion.

To the best of our knowledge and based upon a reasonable investigation, the execution and delivery of the Installment Sale Agreement and the consummation of the transactions therein will not conflict with or constitute a breach of or default (with due notice or the passage of time or both) under any bond, debenture, note or other evidence of indebtedness, or any material contract, agreement or lease to which the City is a party or by which it or its properties are otherwise subject or bound.

State Water Resources Control Board
________, 2025

The Installment Sale Agreement has been duly authorized, executed, and delivered, and assuming due authorization, execution and delivery of the Agreement by the State Water Board, constitutes a legal, valid and binding obligation of the City enforceable against the City in accordance with its terms, except as such enforceability may be affected by bankruptcy, insolvency, reorganization, moratorium and other similar laws affecting creditors' rights heretofore or hereafter enacted and by the exercise of judicial discretion in appropriate cases.

Respectfully submitted,
A Professional Law Corporation

California Environmental Quality Act (CEQA) Determination Yuba City, City of (Applicant)
Wastewater Treatment Facility Outfall and Diffuser Project (Project) Project Number: 8682-110
As the Deputy Director for the State Water Resources Control Board (State Water Board), Division of Financial Assistance, I have been delegated the authority to approve and execute financing agreements for projects that are routine and non-controversial.

The execution of a financing agreement is an action that is subject to CEQA. The authority to make this CEQA determination necessarily accompanies the delegation to approve and execute the financing agreement for this Project.

1. The Applicant is the CEQA Lead Agency and has prepared an Initial Study/Mitigated Negative Declaration (MND) titled Yuba City Wastewater Treatment Facility Outfall and Diffuser Project, for the Project which was circulated through the Governor’s Office of Land Use and Climate Innovation (LCI), State Clearinghouse (No. 2022010175) for review and comments. The Applicant adopted the MND and a Mitigation Monitoring and Reporting Program (MMRP) and approved the Project on March 15, 2022. The Applicant filed a Notice of Determination with the Sutter County Clerk on March 18, 2022 and the LCI on March 21, 2022.

2. The State Water Board is a Responsible Agency under CEQA. A Responsible Agency complies with CEQA by considering the MND and the MMRP prepared by the Lead Agency and by reaching its own conclusions on whether and how to approve the Project involved. The State Water Board has independently considered the MND and the MMRP, and pursuant to my delegated authority, I make the following determinations regarding the Project:

The MND and the MMRP include mitigation measures BIO-4 and HAZ-1 to reduce the potential water quality impacts of the Project to less than significant levels as described in the final MND and the MMRP. Because of the mitigation measures identified herein and in the MND and the MMRP, the Project will not result in any significant adverse water quality impacts.

The MND and the MMRP also include mitigation measures for biological resources, cultural resources, geology and soils, hazards and hazardous materials, and tribal cultural resources that mitigate potential environmental impacts to less than significant levels for these impact categories. Changes or alterations to the Project based on these mitigation measures are within the responsibility and jurisdiction of other public agencies and are not within the jurisdiction of the State Water Board. Such changes either have been adopted by other relevant agencies or can and should be adopted by such other agencies.

Applicant: Yuba City, City of
Project No: 8682-110
C/DWSRF CEQA Determination Resp. 2 Rev. 1/2025
A final copy of the MND, the MMRP, comments and responses, and records of the financing approval for the Project are available to the general public at the State Water Board, Division of Financial Assistance at 1001 I Street, 16th Floor, Sacramento, CA 95814.
, Deputy Director
Division of Financial Assistance