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HomeMy WebLinkAbout2009-03-18 PacketCITY OF UKIAH CITY COUNCIL AGENDA Regular • CIVIC CENTER COUNCIL CHAMBER IF Seminary Avenue Ukiah, CA • .I; March i 2009 6:00 • 1. ROLL CALL 2. PLEDGE OF ALLEGIANCE 3. PROCLA ATIONSIINTRODUCTIONSIPRESENTATIONS a. Presentation by Ukiah Firefighters Association of a $5,000 In -Kind Donation of Multi -gas Detectors to the City of Ukiah 4. PETITIONS AND COMMUNICATIONS a. Citizen Petition of Support from City Council Regarding Possible Consideration of a Sample Resolution Regarding Seniors Eligibility for Entitlement Programs, and the Impacts of Automatic Cost of Living Adjustments (COLAs) that Often Result in Program/Service Disqualification 5. APPROVAL OF MINUTES a. Regular Minutes of February 18, 2009 b. Special Minutes of March 4, 2009 C. Regular Minutes of March 4, 2009 6. RIGHT TO APPEAL DECISION Persons who are dissatisfied with a decision of the City Council may have the right to a review of that decision by a court. The City has adopted Section 1094.6 of the California Code of Civil Procedure, which generally limits to ninety days (90) the time within which the decision of the City Boards and Agencies may be judicially challenged. 7. CONSENT CALENDAR The following items listed are considered routine and will be enacted by a single motion and roll call vote by the City Council. Items may be removed from the Consent Calendar upon request of a Councilmember or a citizen in which event the item will be considered at the completion of all other items on the agenda. The motion by the City Council on the Consent Calendar will approve and make findings in accordance with Administrative Staff and/or Planning Commission recommendations. a. Report of Disbursements for the Month of February 2009 b. Approval of Notice of Completion for the Repairs to the Grace Hudson Museum, Specification No. 08-13 and Approval of Budget Amendment in the Amount of $4,760.99. C. Update Report Regarding Status of Water Emergency Conditions Necessitating Emergency Resolution to Expedite Construction of Gobbi Street Water Well d. Report to City Council on the Enhancement of the Electric Utility Department's Public Benefits Program with the Addition of "Keep Your Cool" Program. e. Authorize the City Manager to Execute a Contract Amendment with Borismetrics in the Amount of $22,000 to Complete a Cost of Service Study and Rate Study, and Authorize a Budget Amendment for the Same 8. AUDIENCE COMMENTS ON NON -AGENDA ITEMS The City Council welcomes input from the audience. If there is a matter of business on the agenda that you are interested in, you may address the Council when this matter is considered. If you wish to speak on a matter that is not on this agenda, you may do so at this time. In order for everyone to be heard, please limit your comments to three (3) minutes per person and not more than ten (10) minutes per subject. The Brown Act regulations do not allow action to be taken on audience comments in which the subject is not listed on the agenda. 9. PUBLIC HEARINGS (6:15 PM) a. Approval of Application to Allow the Removal of More than 50% of the Exterior Front Fagade of a Building Over 50 Years Old Located at 113 West Perkins Street, Ukiah b. Public Hearing on Uniform Construction Cost Accounting Commission findings: 1) Alice Street Project, 2) Golf Course Tributary Project. 10. UNFINISHED BUSINESS a.. Update Regarding Judicial Council of California, Administrative Office of the Courts (AOC): Status of Court Facilities Planning for Mendocino County Courthouse (Ad Hoc Committee will make a verbal status report update) 11. NEW BUSINESS a. Consideration of a New Agreement for Automatic Fire Aid and Operational Memorandum of Understanding Between the Ukiah Valley Fire District and the City of Ukiah. b. Discussion and Possible Action Accepting Proposals for Water and Wastewater Rate Studies and Consideration of Budget Amendments for the Water and Sewer Funds C. Consideration of Approval of Sending a Letter to the State Water Resources Control Board in Support of Local Agriculture Frost Protection d. Award of Contract Subject to Staff Evaluation of Testing Outcomes for the Construction of the Gobbi Street Water Well Specification Number 09-06, or Establishment of a Special Council Meeting Date to Award Gobbi Street Water Well. 14. CLOSED SESSION — Closed Session may be held at any time during the meeting a. Conference with Labor Negotiator (§54957.6) Agency Representative: Jane Chambers, City Manager Employee Organizations: Department Head Unit, Electric Unit, Fire Unit, Management Unit, Miscellaneous Unit, Police Unit b. Conference with Real Property Negotiators (.§ 54956.8); Property: APN 001-020-09 and 11 Negotiator: Jane Chambers, City Manager Negotiating Parties: City of Ukiah/County of Mendocino Under Negotiation: Price and terms RIIIIIIIIIIIII M, •1 Please be advised that the City needs to be notified 72 hours in advance of a meeting if any specific accommodations or interpreter services are needed in order for you to attend. The City complies with ADA requirements and will attempt to reasonably accommodate individuals with disabilities upon request. Materials related to an item on this Agenda submitted to the City Council after distribution of the agenda packet are available for public inspection at the front counter at the Ukiah Civic Center, 300 Seminary Avenue, Ukiah, CA 95482, during normal business hours, Monday through Friday, 7:30 am to 5:00 pm. I hereby certify under penalty of perjury under the laws of the State of California that the foregoing agenda was posted on the bulletin board at the main entrance of the City of Ukiah City Hall, located at 300 Seminary Avenue, Ukiah, California, not less than 72 hours prior to the meeting set forth on this agenda. Dated this 13th day of March, 2009. Linda C. Brown, City Clerk ITEM NO.: 4a MEETING DATE: March 18, 2009 City qj'Tjkiah SUBJECT: CITIZEN PETITION OF SUPPORT FROM CITY COUNCIL REGARDING POSSIBLE CONSIDERATION OF A SAMPLE RESOLUTION REGARDING SENIORS ELIGIBILITY FOR ENTITLEMENT PROGRAMS, AND THE IMPACTS OF AUTOMATIC COST OF LIVING ADJUSTMENTS (COLAs) THAT OFTEN RESULT IN PROGRAM/SERVICE DISQUALIFICATION Citizen J. R. Rose has provided the City with a sample Resolution for City Council Consideration regarding seniors' eligibility for entitlement programs and the impacts of automatic cost of living increases. Staff awaits discussion from City Council as to whether they want to consider it. Fiscal Impact: F-1 Not Applicable Budget Amendment Required Budgeted FY 08/09 F-1 New Appropriation I—x I Recommended Action(s): Discuss and determine whether or not City Council wants to agendize the resolution petition for possible future action. Alternative Council Option(s): n/a Citizens advised: J. R. Rose Requested by: J. R. Rose Prepared by: Linda Brown, City Clerk Coordinated with: Jane Chambers, City Manager Attachments: Sample Resolution Approved: JapVthambers, City Manager RESOLUTION NO. 2009 - RESOLUTION OF THE UKIAH CITY COUNCIL REGARDING SENIOR POPULATIONS AND ELIGIBILITY FOR ENTITLEMENT PROGRAMS, RECOGNIZING THE IMPACTS OF AUTOMATIC COST OF LIVING ADJUSTMENTS (COLAs), AND AUTHORIZING THE CITY COUNCIL TO SUPPORT STATE AND FEDERAL LEGISLATION THAT WOULD INCREASE PROTECTIONS FOR SENIORS DISQUALIFIED FROM PUBLIC PROGRAMS/SERVICES AFTER RECEIVING ONE WHEREAS, seniors sixty years of age, or older are among the most vulnerable citizens in our Country, being at risk of physical, financial, emotional abuse and neglect; and WHEREAS, over 8% of seniors sixty-five years of age, or older in Mendocino County live below the federal poverty level; and WHEREAS, in 2000, over 15,000 seniors resided in Mendocino County comprising 18% of the total County population, totaling 5.6% higher than the national average; and WHEREAS, Over 600 cases of neglect and abuse were reported to Mendocino County Adult Protective Services in 2008; and WHEREAS, the failure to address the widespread and persistent abuse and neglect of seniors breaches our social commitment to protect our most vulnerable citizens from harm; and WHEREAS, increases in Social Security benefits cause seniors to fall out of eligibility for numerous federal, state and local service programs in food, housing and medical services, which result in tremendous hardship and suffering for our most vulnerable populations; and WHEREAS, seniors living near or below the poverty level should be protected from disqualification from entitlement programs when they are granted automatic Cost of Living Adjustments; and WHEREAS, poverty levels are not adjusted automatically when COLA increases are implemented, leaving many seniors either ineligible or with a loss of services; and WHEREAS, based on Area Agency on Aging surveys, issues affecting seniors' access to affordable health and dental care were identified as top priorities for Mendocino County seniors, and NOW THEREFORE, BE IT RESOLVED that the Ukiah City Council will support and advocate for the following: Legislation that would increase protections for seniors receiving automatic Social Security Insurance Cost of Living Adjustments; Legislation that would increase protections for seniors, including physical and financial abuse and neglect; The Elder Justice Act, which would increase protections for seniors, including elder abuse, and establish more stable funding streams for protective senior services; Outreach and information dissemination measures to increase seniors' awareness regarding elder abuse prevention and COLAs and their potential impacts to Social Security and other entitlement program benefits; Oppose legislation that would further denigrate protective services programs serving our nation's senior populations, and measures that would increase the population of seniors living at or below the federal poverty level. PASSED AND ADOPTED on this day of , 2009 by the following vote: AYES: NOES: ABSENT: ABSTAIN: Philip E. Baldwin, Mayor ATTEST: Linda C. Brown, City Clerk CITT' OF 1, ' CITY M COUNCIL MINUTES ' W Regular Meeting V 4 N TES t in g CIVIC CENTER COUNCIL CHAMBE 300 Seminary Avenue Ukiah, CA 95482 February 18, 2009 6:00 p.m. ROLL CALL Ukiah City Council met at a Regular Meeting on FebrL being legally noticed on February 13, 2009. Mayor Bal( 6:00 pm. Roll was taken with the following Councilme Crane, Rodin, and Mayor Baldwin. Councilmembers, Manager Chambers, Acting City Attorney Marston, I Moller, Finance Controller Newell, Finance Director El McLellan, Airport Manager Owen, Director of Publ Director of Community and General Services Sangiacc 2. PLEDGE OF ALLEGIANCE 3. PROCLAMATIONS/INTRODU .911000124mff =We"A3 MIDIM "i I 10 1111 -y 18, 2009, the notice for which /in called the meeting to order at fibers present: Landis, Thomas, sent: none. Staff present: City ,onomic Development Manager n, Customer Service Supervisor Works/City Engineer Eriksen, io, and Deputy City Clerk Currie. a. Regular Minutes of 2/4/09 MIS Landis/Rodin to approve the Regular Minutes of 2/4/09 as submitted. Motion carried by an all AYES voice vote of the members present. 6. RIGHT TO APPEAL DECISION 6:01:40 PM 7. CONSENT CALENDAR IS Thomas/Landis to approve the Consent Calendar items 7a -7c: a. Report of Disbursements for the Month of January 2009 b. Rejection of Claim for Damages Received from Tyler Hanes and Referral to Joint Powers Authority, Redwood Empire Municipal Insurance Fund C. Report to Council of the Expenditure of $5,479.09 to Old Castle Precast Utility Vault for the Purchase of A 54" X 102" Vault Cover for the Electric Division of the Public Utilities Department Motion carried by the following roll call vote: AYES: Councilmembers Landis, Thomas, Crane, Rodin, and Mayor Baldwin. NOES: None. ABSENT: None. ABSTAIN: None. 8. AUDIENCE COMMENTS ON NON -AGENDA ITEMS 6:03:45 PM Lee Howard spoke on the California Uniform Cost Accounting Commission (CUCAC) hearing that happened today regarding the second complaint filed. CC 2/18/09 Pan 1 of 8 -T. 10. UNFINISHED BUSINESS a. Adoption of Ordinance Amending Sections 3798x, 3704.2 and 3706.7, Regulating the Use of Grease Traps Under the City's Sewer Ordinance and Updating References to Building and Related Codes in Sections 9277.A and J, 9278.13 and 9543.A of the Ukiah City Code 6:06:15 PM 4 City Attorney Rapport presented the item. Recommended Action: Adopt the ordinance by motion. M/S Crane/Landis to continue this item to a joint Ukiah Valley Sanitation District (UVSD) and Ukiah City Council meeting. Public Comment Opened pm 6:07:52 PM Public Speaking to the item: Jim Ronco, Ch, Public Comment Closed pm 6:08:44 PM Motion carried by the following roll call vote: AYES: Councilmembers Landis, Thomas, Crane, Rodin, and Mayor Baldwin. NOES: None. 'ABSENT: None. ABSTAIN: None. C. Authorize The City Manager/Executive Director To Negotiate And Execute An Agreement With The Community Development Commission Of Mendocino County (CDC) For Home Program Administration, Program Administration For The Home `Summercreek Village' Grant And Future Home, CDBG and CalHome Affordable Housing Grants 6:10:11 PM Economic Development Manager Moller presented the item. Recommended Action: The City of Ukiah and Redevelopment Agency authorize the City Manager/Executive Director to negotiate and execute an agreement with CDC for grant administration of the 2008 HOME Grant, the Summer Creek Village Grant, future HOME, CDBG Housing and CalHome Grants. M/S Crane/Landis to approve the Recommended Action. Motion carried by the following roll call vote: AYES: Councilmembers Landis, Thomas, Crane, Rodin, and Mavor Baldwin. NOES: None. ABSENT: None. ABSTAIN: None. a. Adoption of Resolution Amending Resolution No. 94-49 Establishing Utility Deposits, Service Fees and Rules Governing Utility Deposits 6:18:47 PM Finance Controller Newell, Finance Director Elton, and Customer Service Supervisor McLellan presented the item. Recommended Action: Conduct the Public Hearing and Adopt Resolution amending Resolution no. 94-49 establishing utility deposits, service fees and rules governing utility deposits. M/S Crane/Landis to approve the recommended action. Public Hearing Opened 6:27 pm Public Speaking to the item: None. Public Hearing Closed 6:28 pm CC 2/18/09 Page 2 of 8 Motion carried by the following roll call vote: AYES: Councilmembers Landis, Thomas, Crane, Rodin, and Mayor Baldwin. NOES: None. ABSENT: None. ABSTAIN: None. 10. UNFINISHED BUSINESS b. Consideration and Possible Introduction of Ordinance Amending Sections in the City Animal Control Ordinance, as it Pertains to Dogs and Cats, to Use the Term "Owner/Guardian" Instead of Just "Owner." As an Alternative to Amending the Animal Control Ordinance, Consideration and Possible Adoption of a Resolution to Encourage the Use of "Guardian" When Referring to the Owners of Dogs or Cats 6:29:28 PM City Attorney Rapport presented the item whether to introduce the proposed ordinance If the City Council decides to make the am( introduce the ordinance by title only, reque ordinance title, and, then, pass a motion ordinance is introduced, it will be brought Council meeting. M/S Crane/Thomas to table the item. Recommended Action: Consider or, alternatively, adopt a resolution. ndments, it should pass a motion to >t the Deputy City, Clerk to read the to introduce the ordinance. If the back for adoption' at the next City Public Comment Opened 6:37 pm 6:37:44 PM Public Speaking in support of tabling the item: Dr. Edward Haynes; 6:40:06 PM Betty Hook, and 6:40:53 PM Josephine Morrissey. Public Speaking in opposition of tabling the item: 6:43:04 PM Jan Allegretti; 6:44:36 PM Joanne Treadway; 6:45:22 PM' Dave Smith; and 6:46:17 PM Max Moshe. Public Comment Closed 6:50 pm Motion failed by the following roll call vote: AYES: Councilmembers Thomas and Crane. NOES: Councilmember Landis, Rodin, and Mayor Baldwin. ABSENT: None. ABSTAIN: None;. M/S Crane/Landis to approve the resolution changing the wording in paragraph one (1) to "The City Council desires to encourage the use of the word "caretaker" when referring to the owners of dogs and cats," replace the word "guardian" with "caretaker" throughout the resolution, and delete paragraph two (2). Motion carried by the following roll call vote: AYES: Councilmembers Landis, Thomas, Crane, and Rodin. NOES: Mayor Baldwin. ABSENT: None. ABSTAIN: None. Public Comment Opened 7:01 pm Public Speaking to the item: Josephine Morrissey. Public Comment Closed 7:02 pm d. Authorize the City Manager to Execute a Consultant Services Agreement with Winzler & Kelly for the Preparation of Applications to State Revolving Fund (SRF) Programs to Secure Federal Recovery and Rehabilitation Act Funds for Water and Sewer Infrastructure Projects 7:03:07 PM CC 2/18/09 Page 3 of 8 Director of Public Works/City Engineer Eriksen presented the item. Recommended Action: Approve City Manager to execute a Consultant Services Agreement with Winzler & Kelly in the amount of $150,592 for the preparation of applications to SRF programs. M/S Crane/Landis to approve the Recommended Action. Public Comment Opened 7:15 pm 7:15:12 PM Public Speaking to the item: John McCowen Public Comment Closed pm 7:16:16 PM Motion carried by the following roll call vote: A Thomas, Crane, Rodin, and Mayor Baldwin. N ABSTAIN: None. Recessed 7:17 pm Reconvened 7:25 pm 11. NEW BUSINESS a. Discussion and Possible Action (IWPC) Issues 7:25:58 PM Mayor Baldwin presentedthe itE of the feasibility study in which 1 costs and expectation of compl Council may want to take with re( Public Comment Opened 7:591 Public Speaking to the item: 7:59 Public Comment Closed 8:28 p Councilmembers Landis, None. ABSENT: None. and Power' Commission ecommended Action: Discuss the status ity of Ukiah is participating, with regard to Consider action and/or actions the City o the project but not take action tonight. M Ross Mayfield and John McCowen By Consensus, City Council directed the City Attorney to obtain a copy of the operations manual for the dam and the original contract with the Army Corp and review those documents; look into amending the Flood Control District policy and filing a petition with the Federal Energy Regulatory Commission for a modification to the licensing permit; and prepare a memo to Council. Councilmember Rodin and Thomas left the dais at 8:33 pm b. Discussion and Direction Regarding the Ukiah Railroad Depot Rehabilitation Project 8:34:06 PM Director of Public Works/City Engineer Eriksen and Deputy Director of Public Works for Engineering and Streets Seanor presented the item. Recommended Action: Provide direction to staff on project. Councilmember Thomas returned to the dais at 8:36 pm Councilmember Rodin returned to the dais 8:37 pm CC 2/18/09 Page 4 of 8 Deputy Director of Public Works for Engineering and Streets Seanor read an email from the attorney for the North Cost Railroad Authority forwarded from City Attorney Rapport stating "Although the Agreement may have expired by its terms in 2003, 1 do not anticipate that there will be any recommendation considered by the Board of Directors of NCRA in April or at any time thereafter which would either sell, encumber, or declare the depot surplus. MCRA staff will recommend and we expect the Board of Directors will be receptive, to either renew the agreement, or otherwise protect the Depot property." 8:38:16 PM Public Comment Opened 9:07 pm 9:07:31 PM Public Speaking to the item: Judy Pruden Public Comment Closed 9:13 pm By Consensus, City Council continued this item for 2 to 4 weeks and directed staff to bring back a recommended budget amendment and recommendation on how equity can be gained in the project. Councilmember Landis left the dais 9:28 C. Adoption of Resolution Authorizing the Submittal of an Application, Acceptance of an Allocation of Funds and Execution of a Grant Agreement with the California Department of Transportation, for a Matching Grant for Federal Aviation Administration (FAA) Approved Project Under Airport Improvement Program 9:28:13 PM Airport Manager Owen resolution. Councilmember Landis 01 e M/S Public Com Public Speal Public Com ded Action: Adopt the to the dais 9:30 pm approve the Recommended Action. ate: AYES: Councilmembers Landis, win. NOES: None. ABSENT: None. it Opened 9:31 pm to the item: Acting City Attorney Marston it Closed 9:32 pm Motion carried by Thomas, Crane, ABSTAIN: None. of Resolution Establishing a Service Charge for Returned Checks Finance Controller Newell presented the item. Recommended Action: Adopt Resolution Establishing Service Charge for Returned Checks. M/S Crane/Landis to approve the Recommended Action. Motion carried by the following roll call vote: AYES: Councilmembers Landis, Thomas, Crane, Rodin, and Mayor Baldwin. NOES: None. ABSENT: None. ABSTAIN: None. Report Status of Procuring Identity Verification Services for New Accounts Processing 9:34:16 PM Finance Controller Newell presented the item. Recommended Action: Receive CC 2/18/09 Page 5 of 8 Report. By Consensus, City Council received the report. f. Approval of Electronic Bill Pay Services to Paymentus Corporation to Provide On -Line Internet Payment Capability Allowing Customers Access from the City's Website and a Dedicated Phone Number with Automated Phone Payment Services for Customers Paying by Phone Accessible 24 Hours, 7 Days a Week 9:37:07 PM K T Finance Controller Newell presented the item. Recommended Action: Approve award of bid to Paymentus Corporation to provide on-line Internet payment capability from the City's website and a dedicated phone number with automated phone payment services for customers accessible 24 hours, 7 days a week. M/S Crane/Thomas to approve the Recommended Action. Motion carried by the following roll call vote: AYES: Councilmembers Landis, Thomas, Crane, Rodin, and Mayor Baldwin. NOES: None. ABSENT: None. ABSTAIN: None. Adoption of Budget Guidelines for PM Year Budget 9:45:00 City Manager Chambers and Finance Director Elton presented the item. Recommended Action: Adoption of the recommended budget guidelines as proposed, or as modified as a result of Council discussion. M/S Crane/Landis to approve the Recommended Action. Public Comment Opened 9:58 pm 9:58:42 PM Public Speaking to the item and requesting to not take funding from the museum: Monte Hill and 10:04:38 PM Mary Louise Chase, Sun House Guild Chair. Public Comment Closed 10:06 om Motion carried by ;the following roll call vote: AYES: Councilmembers Landis, Thomas, Crane, Rodin, and Mayor Baldwin. NOES: None. ABSENT: None. ABSTAIN: None. rite the City Manager to Engage the Services of Government :ial Strategies in an Amount Not to Exceed $21,500.00 10:07:14 PM City Manager Chambers presented the item. Recommended Action: Authorize the City Manager to enter agreement for the scope of work outlined by Government Financial Strategies Inc, for an amount not to exceed $21,500. Funding for the project will be provided from Unallocated Funds, 699. MIS Rodin/Crane to approve the Recommended Action. Motion carried by the following roll call vote: AYES: Councilmembers Landis, Thomas, Crane, Rodin, and Mayor Baldwin. NOES: None. ABSENT: None. ABSTAIN: None. Discussion of City Council Conference and Training Budget CC 2/18/09 Page 6 of 8 Mayor Baldwin presented the item. Recommended Action: Reaffirm previous Council policy. By Consensus, City Council reaffirmed the previous Council Policy. Update on Observatory Park and Adoption of Resolution Approving an Application for Land and Water Conservation Fund Competitive Grant Program for Observatory Park Development 10:27:01 PM Community Services Simerson and Director of Community and General Services Sangiacomo presented the item. Recommended Action: Receive update on Observatory Park and adopt the resolution authorizing the application to the Land and Water Conservation Fund for the Observatory Park Development Project. M/S Rodin/Crane to approve the Recommended Action. Motion carried by the following roll call vote: AYES: Councilmembers'Landis, Thomas, Crane, Rodin, and Mayor Baldwin. NOES: None. ABSENT: None. ABSTAIN: None. 12. COUNCIL REPORTS Councilmember Landis reported on her attendance to the All Cities meeting held February 13, 2008, which will be happening on a quarterly basis. Some topics covered were the former Masonite Property, Mendocino Council of Governments, other transportation funding, and appointing someone from Mendocino County through the Board of Supervisors to the North Coast Water Project. Councilmember Thomas reported on his attendance to the All Cities meeting and added there was discussion of having MCOG meet as the Air Quality Board. Councilmember Rodin reported the League of California Cites staff has seen language in upcoming legislation regarding the prevailing wage issue which might be beneficial to rural communities. 13. CITY MANAGERICITY CLERK REPORTS City Manager Chambers reported that recruitments are open but may not be filled as that depends upon upcoming budget decisions, on applying for earmarked funding from the Federal Government, and on the CUCAC hearing that happened today which resulted with a second strike. Recessed as City Council and convened as Ukiah Redevelopment Agency at 10:43 pm. Reconvened as City Council and recessed to Closed Session for the Ukiah Redevelopment Agency and City Council at 10:46 pm. 14. CLOSED SESSION — Closed Session may be held at any time during the meeting a. Conference with Labor Negotiator (§54957.6) Agency Representative: Jane Chambers, City Manager Employee Organizations: Department Head Unit, Electric Unit, Fire Unit, Management Unit, Miscellaneous Unit, Police Unit b. Conference with Real Property Negotiators (§ 54956.8); Property: APN 001-020-09 and 11 CC 2/18/09 Page 7 of 8 Negotiator: Jane Chambers, City Manager Negotiating Parties: City of Ukiah/County of Mendocino Under Negotiation: Price and terms Reconvened in Open Session with no reportable action at 11:44 pm. 15. ADJOURNMENT There being no further business, the meeting adjourned at 11:44 pm. JOA CC 2/18/09 Page 8 of 8 CITY • UKIAH CITY • MINUTES • Meeting CITY • CHAMBERS CONFERENCE #4- 300 Seminary Avenue Ukiah, CA 95482 March 4, 2009 5:45-6:00 • 1. ROLL CALL Ukiah City Council met at a Special Meeting on March 4, 2009, the notice for which being legally noticed on February 27, 2009. Mayor Baldwin called the meeting to order at 5:46 pm. Roll was taken with the following Councilmembers present: Landis, Thomas, Crane, Rodin, and Mayor Baldwin. Councilmembers absent: none. Staff present: City Manager Chambers and Deputy City Clerk Currie. 2. INTERVIEW APPLICANT Interview the One Applicant for Potential Appoin Parks Recreation and Golf Commission which w Business on the March 4 Regular Agenda under Interview conducted with Bill H 3. PUBLIC COMMENT 5:52:56 PM Don Rones Sr., Parks, Recreation, and Go golf course is in the best condition ever an( Johnson; Robert Gibson, Parks/Golf; Direc Sangiacomo; and the City Council have do Hoover and feels he will be a qood additior to the Vacant Seat of the ie up for Action Under New 1 a 5:48:09 PM Commission member, reported the Ukiah acknowledged the work Golf Pro Frank )r of Community and General Services a. Mr. Rones also stated he knows Bill :o the Commission. being no further business, the meeting adjourned at 5:56 pm. JoAnne M. Currie, Deputy City Clerk CC Special 3/4/09 Page 1 of 1 M. CITY OF UKIAH 5C CITY COUNCIL Regular Meeting Minutes CIVIC CENTER COUNCIL CHAMBERS 300 Seminary Avenue Ukiah, CA 95482 March 4, 2009 6:00 p.m. 1. ROLL CALI-6:01:08 PM Ukiah City Council met at a Regular Meeting on March 4, 2009, the notice for which being legally noticed on February 27, 2009. Mayor Baldwin called the meeting to order at 6:00 pm. Roll was taken with the following Councilmembers present: Landis, Thomas, Crane, Rodin, and Mayor Baldwin. Councilmembers absent: none. Staff present: City Manager Chambers, Acting City Attorney Marston, Economic Development Manager Moller, Director of Community and General Services Sangiacomo, Director of Public Works/City Engineer Eriksen, Deputy Director of Public Works — Water & Sewer Division Burck, Finance Director Elton, and Deputy City Clerk Currie, 2. PLEDGE OF ALLEGIANCE 3. PROCLAMATIONS/INTRODUCTIONS/PRESENTATION5 None. 4. PETITIONS AND COMMUNICATIONS None. 5. APPROVAL OF MINUTES None. 6. RIGHT TO APPEAL DECISION 6:02:50 PM Acting City Attorney Marston brought forth an Urgency Item to the City Council for consideration to be added to the agenda. .6:0' ):24 PM MIS Crane/Rodin finding that an emergency situation exists that arose after the preparation and posting of the agenda and to add to the agenda the Urgency Item, Adopt A Resolution Determining That An Emergency Exists in the Construction and Operation of the Gobbi Street and Orchard Avenue Well, the Construction of which Will be Necessary to Prevent the Disruption of Water Services to the Residents of the City of Ukiah and Directing the City Manager to Undertake all Steps Necessary to Have the Well Constructed without Going Through a Competitive Bidding Process Pursuant to Public Contracts Code § 22050. Motion carried by the following roll call vote: AYES: Councilmembers Landis, Thomas, Crane, Rodin, and Mayor Baldwin, NOES: None. ABSENT: None. ABSTAIN: None. The Urgency Item will be heard as Item 10a.1 7. CONSENT CALENDAR 6:05:05 PM IS Rodin/Thomas to approve the Consent Calendar items 7a -7g: a. Authorize a Budget Amendment in the Amount of $42,000 to the Internal Dispatch Service Fund to Begin the Dispatch 911 Improvement Project b. Notification of Purchase of Static Dissipative Vinyl Flooring, in the Amount of $6,359.00, to Carpet One — Ukiah CC 3/4/09 Page 1 of 6 C. Report to the City Council Regarding Acquisition of Services from Spencer Brewer for the Management/Production of the 2009 Sundays In The Park Concert Series in the Amount of $8,000 d. Award Purchase of Ferric Chloride Solution to Kemira Water Solutions, Inc, at the Unit Price of $889.99 per Dry Ton for an Approximate Total Amount of $142,400 Plus Tax e. Award Purchase of Liquid Sodium Hypochlorite Solution to Olin Corporation at the Unit Price of $0.919 per Gallon for an Approximate Total Amount of $91,900 Plus Tax f. Award Purchase of Liquid Polymer -Emulsion to Polydyne, Inc at the Unit Price of $1.09 per Pound for an Approximate Total Amount of $13,080 Plus Tax g. Award Purchase of Sodium Bisulfite Solution to Basic Chemical Solutions, Inc at the Unit Price of $586.96 Per Dry Ton for an Approximate Total Amount of $14,674 Plus Tax Motion carried by the following roll call vote: A Crane, Rodin, and Mayor Baldwin. NOES: None 8. AUDIENCE COMMENTS ON NON -AGENDA IT Richard Hansen, on behalf of Ukiah Main Stree- to attend the annual breakfast banquet Friday, State Street Cafe. 11. NEIN BUSINESS a. Appointment to the Pa Unexpired Term and Adg Councilmember Landis present the one (1) Parks, Recreation, CouncilMeeting; 2) Make a r Resolution making the appointr Councilmernber Landis Nominated ::ilmembers Landis, Thomas, None. ABSTAIN: None. 5 PM invited staff and City Council 2009, at 8:00 am at North n, and Golf Commission to Fill an Making the Appointment 6:08:27 PM a' item. Recommended Action: 1) Interview Golf Commission Applicant prior to the City ation and appointment; and 3) Adopt a Hoover. NUS Landis/Rodin to approve the nomination and adopt the resolution making the appointment. Motion carried by the following roll call vote: AYES: Council`rnembers Landis, Thomas, Crane, Rodin, and Mayor Baldwin. NOES: None. ABSENT: None. ABSTAIN: None. 9. PUBLIC HEARINGS 16:15 PM) 6:14:02 YM a. Consideration of Request by Ukiah Unified School District for Payment of $430,000 to be Used for the Renovation of Yokayo Elementary School Gym per the Agreement Between the Ukiah Redevelopment Agency and Ukiah Unified School District Dated January 14, 2003 Economic Development Manager Moller and Community/General Services Director Sangiacomo presented the item. Recommended Action: Motion the following required findings: 1) the renovation of the gym at Yokayo Elementary School is a benefit to the Project Area; 2) There are no other reasonable means of financing the improvements; and 3) Correction of the environmental deficiencies with this gym will assist in the elimination of blighting conditions in the Project Area and is consistent with the Agenda's Redevelopment and Implementation Plans. And, authorize disbursement of Ukiah Unified School District's portion of Redevelopment Funds in the amount of $430,000 from the CC 3/4/09 Page 2 of 6 Ukiah Unified School District Capital Outlay Fund. Public Hearing Opened 6:20 pm6:20:18 PM Public Speaking in Support to the item: John McCowen, private citizen. Public Hearing Closed 6:21 pm 6:21:42 PM MIS Rodin/Crane to approve the Recommended Action. Motion carried by the following roll call vote: AYES: Councilmembers Landis, Thomas, Crane, Rodin, and Mayor Baldwin. NOES: None. ABSENT: None. ABSTAIN: None. 10. UNFINISHED BUSINESS a. Adopt Specifications 09-06 for the Construction of a Test Well at Gobbi Street and Orchard Avenue and Issue Request for Bids for Same 6:24:17 PM Director of Public Works/City Engineer Eriksen and Deputy Director of Public Works — Water & Sewer Division Burck presented the item. Recommended Action: Adopt Specification for the Gobbi Street Test Well, City Job #09-06 and Issue Request for Bids for the Construction of the Gobbi Street Test Well. a.1 Adopt A Resolution Determining That An Emergency Exists In The Construction and Operation of the Gobbi Street and Orchard Avenue Well, the Construction of Which Will Be Necessary to Prevent the Disruption of Water Services to the Residents of the City of Ukiah and Directing the City Manager to Undertake all Steps Necessary to Have the Well Constructed Without Going Through a Competitive Bidding;; Process Pursuant to Public Contracts Code § 22050. Director of Public Works/City Engineer Eriksen and Deputy Director of Public Works Water & Sewer Division Burck presented the item. Recommended Action: adopt the resolution. Public Comment Opened 7:07 pm7:07:25 PM Public Speaking to the item: John Graff, Employer's Council of Mendocino County (ECMC), and 7:09:04 PM John McCowen. Public Comment Closed 7:10 pm MIS Crane/Rodin to approve the Recommended Actions adding four test site locations: water treatment plant, northwest corner of Orchard and Gobbi property, southeast corner of Orchard and Gobbi property, and RCHDC property. Motion carried by the following roll call vote: AYES: Councilmembers Landis, Thomas, Crane, Rodin, and Mayor Baldwin. NOES: None. ABSENT: None. ABSTAIN: None. b. Discussion and Possible Direction Regarding the Orchard Avenue Bridge Construction Project Agreement Between the City of Ukiah and the County of Mendocino 7:44:31 PM City Manager Chambers and Director of Public Works/City Engineer Eriksen presented the item. Recommended Action: 1) Authorize staff to change the percentage in the agreement between the City of Ukiah and the County of Mendocino and forward agreement to the County of Mendocino for execution; 2) CC 3/4/09 Page 3 of 6 Enter discussion with parties to receive $80,000, or 5% contribution, and discuss further modification of the agreement as necessary to reach agreement with the parties, with participation of the City Attorney; and 3) Return to the City Council for approval of modifications as needed to inform the City Council of impacts on future decisions. Public Comment Opened 7:57 pm7:57:42 PM Public Speaking to the item: John Graff, ECMC; 8:00:03 PM Bruce Alfano, rural community; 8:04:57 PM Richard Shoemaker; and 8:08:34 PM John McCowen. Public Comment Closed 8:14 pm M/S Crane/Thomas to 1) Authorize staff to change from percentage to $100,000 in the agreement between the City of Ukiah and the County of Mendocino and forward agreement to the County of Mendocino for execution; and 2) Enter discussion with parties to receive an instrument guaranteeing $100,000, any further discussion or modification of the agreement as is necessary to reach agreement with the party. Motion carried by the following roll call vote: AYES: Councilmembers Landis, Thomas, Crane, and Rodin. NOES: Mayor Baldwin. ABSENT: None. ABSTAIN: None. Recessed 8:33 pm Reconvened 8:39 pm C. Report on Layoffs Related to FY 2008/2009 General Fund Budget Compensation Reductions for Employees 8:39:49 PM City Manager Chambers presented the item. Recommended Action: Advise as to Negotiations/ Acceptance of Lay Offs. m 11. NEIN BU b. A sus, City Council received report. the City Manager to Enter Into a Professional Service Agreement dan Financial Services to Perform a Comprehensive Fee and Cost d to Prepare a Cost Allocation Plan 8:42:01 PM Director of Finance Elton presented the item. Recommended Action: 1) Authorize a budget amendment to Fund #699 in the amount of $36,740; and 2) Authorize the City Manager to enter into a professional service agreement with Willdan Financial Services to perform a comprehensive fee and cost study and to prepare a cost allocation plan in the amount of $36,740.00. M/S Crane/Landis to approve the Recommended Action. Motion carried by the following roll call vote: AYES: Councilmembers Landis, Thomas, Crane, Rodin, and Mavor Baldwin. NOES: None. ABSENT: None. ABSTAIN: None. C. Consideration of Annual Performance Agreement with the Greater Ukiah Chamber of Commerce and the Measure X Transient Occupancy Tax (TOT). Authorization for the City Manager to Negotiate and Execute the Agreement and Approve the Budget Amendment 8:59:11 PM Economic Development Manager Moller and Community/General Services Director Sangiacomo presented the item. Recommended Action: 1) Review CC 3/4/09 Page 4 of 6 and Consider the TOT Measure X 2008 Year End Report; 2) Review and Consider the 2009 Measure X Work Plan and Budget; 3) Authorize the City Manager to negotiate and execute renewal of the contract between the Chamber of Commerce and the City of Ukiah; and 4) Approve a corresponding budget amendment in the amount $6,519. Public Comment Opened 9:08 pm 9:08:49 PM Public Speaking to the item: Bert Mosier, Chamber of Commerce CEO and 9:32:11 PM John McCowen. Public Comment Closed 9:34 pm By Consensus, City Council agreed to receive a verbal update from Chamber of Commerce in 6 months. M/S Rodin/Crane to approve the Recommended Action. 'Motion carried by the following roll call vote: AYES: Councilmembers Landis, Thomas, Crane, Rodin, and Mayor Baldwin. NOES: None. ABSENT: None. ABSTAIN: None, d. Resolutions Concerning Modification to Employee Pay and Benefits City Manager Chambers presented the item. Recommended Action: Adopt Resolutions Concerning Modifications to Employee Pay and Benefits This matter was heard in closed session. M/S Rodin/Landis to approve the Resolution adopting addenda to employment contracts with the City Manager and the Director of Public Safety and the Resolution adopting the addenda to the Memoranda of Understanding between the City of Ukiah and the Department Head and Ukiah Police Officers Association Units, Motion carried by the following roll call vote: AYES: Councilmembers Landis, Thomas, Crane, Rodin, and Mayor Baldwin. NOES: None. ABSENT: None. ABSTAIN: None. 12. COUNCIL REPORTS Councilmember Landis reported on her facilitating the Tree Advisory Group meeting; at that meeting the; group came up with a list of items that would make the many documents the City currently has into a comprehensive document. Councilmember Landis expressed her interest on becoming a member of the Strategic Planning Capital Improvement Proqram Ad Hoc Committee; this will be added to a future agenda. 9:33:55 Councilmember Rodin stated in the past art has been displayed in City Hall's Foyer and feels it should be encouraged. Director of Community and General Services Sangiacomo informed stated applications are available from the Community Services Department. 9:35:54 PM Mayor Baldwin requested a report from staff how sign code enforcement will be handled now that the City does not have a Code Compliance Officer. 9:36:33 PM 13. CITY MANAGER/CITY CLERK REPORTS None. Recess as City Council and convene as Ukiah Redevelopment Agency at 9:37 pm. CC 3/4/09 Page 5 of 6 Reconvened as City Council and recessed to Closed Session at 9:58 pm. 9:58:46 PM 14. CLOSED SESSION — Closed Session may be held at any time during the meeting a. Conference with Labor Negotiator (§54957.6) Agency Representative: Jane Chambers, City Manager Employee Organizations: Department Head Unit, Electric Unit, Fire Unit, Management Unit, Miscellaneous Unit, Police Unit Reconvened in Open Session at 10:08 pm; see item 11.d for reportable action. Recessed to Closed Session for City Council and Ukiah Redevelopment Agency at 10:08 pm. Reconvened in Open Session with no reportable action on labor negotiations at 11:04 pm. 15. ADJOURNMENT There being no further business, the meeting adjourned at 11:04 pm. JoAnne M. Currie, Deputy City Clerk CC 3/4/09 Page 6 of 6 ITEM NO. - DA Aft ciey AGENDA SUMMARY REPORT 7a March 18, 2009 SUBJECT: REPORT OF DISBURSEMENTS FOR THE MONTH OF FEBRUARY 2009 Payments made during the month of February 2009, are summarized on the attached Report of Disbursements. Further detail is supplied on the attached Schedule of Bills, representing the four (4) individual payment cycles within the month. Accounts Payable check numbers: 92243-92326, 92410-92501, 92503-92586, 92675-92776 Accounts Payable Manual check numbers: 92327 Payroll check numbers: 92328-92409, 92591-92674 Payroll Manual check numbers: 92587-92590 Void check numbers: 92502 This report is submitted in accordance with Ukiah City Code Division 1, Chapter 7, Article 1. Fiscal Impact: 1-1 Budgeted FY 08/09 New Appropriation ® Not Applicable Budget Amendment Required 1-1 Amount Budgeted Source of Funds (title and #) Account Number Addit. Appropriation Requested Continued on Paqe 2 Recommended Action(s): Approve the Report of Disbursements for the month of February 2009 Alternative Council Option(s): N/A Citizens advised: N/A Requested by: City Manager Prepared by: Kim Sechrest, Accounts Payable Specialist If Coordinated with: Finance Director and City Manager Attachments: Reports of Disbursements Il Approved: i LL�:�__ �6e Chambers, City Manager CITY OF UKIAH REPORT OF DISBURSEMENTS REGISTER OF PAYROLL AND DEMAND PAYMENTS FOR THE MONTH OF FEBRUARY 2009 Demand Payments approved: Check No. 92243-92327, 92410-92501, 92503-92586, 92675-92776 FUNDS: 100 General Fund $102,971.17 600 Airport $31,559.38 105 Measure S General Fund $50,492.23 610 Sewer Service Fund 131 Equipment Reserve Fund 611 Sewer Construction Fund $2,212,323.33 140 Park Development 612 City/District Sewer $83,937.73 141 Museum Grants 614 Sewer Capital Projects Fund 143 N.E.H.1. Museum Grant 615 City/District Sewer Replace 150 Civic Center Fund 620 Special Sewer Fund (Cap Imp) 200 Asset Seizure Fund $39,559.18 640 San Dist Revolving Fund 201 Asset Seizure (Drug/Alcohol) 641 Sanitation District Special $7,756.18 203 H&S Education 11489 (13)(2)(A1) $432.00 650 Spec San Dist Fund (Camp Imp) 204 Federal Asset Seizure Grants 652 REDIP Sewer Enterprise Fund 205 Sup Law Enforce. Srv. Fund (SLESF) $10,899.29 660 Sanitary Disposal Site Fund $22,192.70 206 Community Oriented Policing 661 Landfill Corrective Fund 207 Local Law Enforce. Blk Grant 664 Disposal Closure Reserve 220 Parking Dist. #1 Oper & Maint $466.74 670 U.S.W. Bill & Collect $22,375.74 230 Parking Dist. #1 Revenue Fund $66.00 678 Public Safety Dispatch $42,348.01 250 Special Revenue Fund $2,687.25 679 MESA (Mendocino Emergency Sry Auth) 260 Downtown Business Improvement 695 Golf $30,856.96 270 Signalizaton Fund 696 Warehouse/Stores $2,532.48 290 Bridge Fund 697 Billing Enterprise Fund $6,508.88 300 2106 Gas Tax Fund 698 Fixed Asset Fund $6,513.85 301 2107 Gas Tax Fund 699 Special Projects Reserve $33.62 303 2105 Gas Tax Fund 800 Electric $852,822.96 310 Special Aviation Fund 805 Street Lighting Fund $9,096.12 315 Airport Capital Improvement 806 Public Benefits Charges $7,265.19 330 1998 STIP Augmentation Fund 820 Water $31,795.40 332 Federal Emerg. Shelter Grant 840 Special Water Fund (Cap Imp) 333 Comm. Development Block Grant 900 Special Deposit Trust $11,264.22 334 EDBG 94-333 Revolving Loan 910 Worker's Comp. Fund $146,161.73 335 Community Dev. Comm. Fund 920 Liability Fund $31,459.16 340 SB325 Reimbursement Fund $5,300.02 940 Payroll Posting Fund $204,646.74 341 S.T.P. 950 General Service (Accts Recv) $744.79 342 Trans -Traffic Congest Relief 960 Community Redev. Agency $15,335.66 345 Off -System Roads Fund 962 Redevelopment Housing Fund 410 Conference Center Fund $9,522.66 965 Redevelopment Cap Imprv. Fund $2,990.75 550 Lake Mendocino Bond-Int/Red 966 Redevelopment Debt Svc. 555 Lake Mendocino Bond -Reserve 975 Russian River Watershed Assoc $24,138.41 575 Garage $6,623.27 976 Mixing Zone Policy JPA PAYROLL CHECK NUMBERS 92328-92409 DIRECT DEPOSIT NUMBERS 40722-40903 PAYROLL PERIOD 1/25/09-2/7/09 PAYROLL CHECK NUMBERS: 92587-92674 DIRECT DEPOSIT NUMBERS 40904-41073 PAYROLL PERIOD 2/8/09-2/21/09 VOID CHECK NUMBERS: 92502 TOTAL DEMAND PAYMENTS-A/P CHECKS $4,035,679.80 TOTAL DEMAND PAYMENTS -WIRE TRANSFERS* $1,507,661.00 TOTAL PAYROLL CHECKS & DIRECT DEPOSITS $673,045.83 TOTAL PAYROLL EFT's (TAXES, PERS, VENDORS) $308,207.25 *VENDOR: KIEWIT PACIFIC (2 PAYMENTS) TOTALPAYMENTS CERTIFICATION OF CITY CLERK This register of Payroll and Demand Payments was duly approved by the City Council on APPROVAL OF CITY MANAGER I have examined this Register and approve same. City Manager City Clerk CERTIFICATION OF DIRECTOR OF FINANCE I have audited this Register and approve for accuracy and available funds. Director of Finance $6,524,593.88 xw �� rX4 U OW �rn H t` U• O ma O O kD-41 0 Ln as UU a) .Q M •5v N a N H r -I .� al 44 O N H rd a) U U) W\ Ln O\ UN 9O a U W C4 r. a U) m H -I d' 10001 m N N N H N m N H O N>> 0 H 0 N H N H 0 0 z H cM M O N IZP O> w N 0 In m O m m 0 w m N O r- lzp w z �.o <o w..........•..•......... . w rn m r- Nm Ln O O1 Md' O 0 Ul O1H m O m M N 0 r- 0 H H H W M h h M M N O N M Ln,440 NO NH00)H lOM O1 W O1 171 CO 00\Il It co MNN r -i L,O 1D 0) 001001 H w r- m r r, Q4. . . I . . . . I . . . . . . . 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HLn Ln Lf) Ln H z N N N N x H O O O O �D a 0 O 0 0 W x a Ci+ C7 Q M M M M OFL H O O O O w O 0 0 0 W \ 0� 0 Nm -- a PI a a H L� Cza U ko fa0 npl C 0 HM rxa I O OD Lm, a P+ 0 N HmE-4 d' �w Ln mo wWaaw a z W x RU-- W m Ial H HH N < o U U 3 H 3 o wQ> H p O (� ,444 Ln 00 l0 H k0 w M M a M M M M a 0 m m m U O o O o o r- 0 O 0 0 0 0 (-I o O O O nO O O O Ln Ln w w U H N ri r U ri H ri o O o o H N �tl H H 0 r-1 H N N N Ln Ln Ln O 5y O 0 O O RS f> ri ri H H a Q w W W W F-4 w w O U U 44 W O U z., W W H P.' P� F-4 P14 W °a ro 0 U U .[ z O W U H U m Hz O OZZ p� H N H L, M [M Ln 0 Ln O1 O O N co m rn Ln OH w H L� H r-1 W O to N ri 0 - u a a H H as x a O U] �H d+ = W mW rn U W \ 0� 0 MzzW M \ air fa0 npl C M HM rxa I OD Lm, WO Fq am N HmE-4 m �w mo wWaaw �a RU-- ZQ Ial H HH N < o > 3 3 3 � uu• 'SM a) Qi r -i A Q � w a ma as x O 44 w 0 � w a z U m H n O U U qr Ln N O O O ZS H ',0 z 6 N HH rx 0 d' 00 a •• a 0 0 am wH H mo Za a H CN p O Oca w N OW 0. UN 40 ITEM NO.: 7b March 18, 2009 SUBJECT: APPROVAL OF NOTICE OF COMPLETION FOR THE REPAIRS TO THE GRACE HUDSON MUSEUM, SPECIFICATION NO. 08-13 AND APPROVAL OF BUDGET AMENDMENT IN THE AMOUNT OF $4,760.99. The City Council awarded the contract on October 1, 2008 to Cupples & Sons Construction of Ukiah, California (Contractor) in the amount of $65,006.29. The contract was for repair work performed at the Grace Hudson Museum, from damages sustained during the 2005/2006 New Year's flood as approved by FEMA, as well as other non -FEMA repair work to the facility. During the course of the project, and as reported and approved at the November 4th, 2008 Council Meeting, five change orders, for a total amount of $14,869, were approved for additional work. The Purchase Order Summary is attached for Council's review (Attachment #1). The work of the contract was completed by the contractor in conformance with the approved plans and specifications on January 23, 2009. The final contract cost, reflecting approved change orders, is $79,875.29, ($64,815.06 for FEMA related work, and $15,060.23 for non -FEMA related work). Final payment of the 10% retention will be made to the Contractor after 35 days from the date the Notice of Completion is filed with the County Recorder (Attachment #2). A budget amendment in the amount of $4,760.99 is needed to fully cover the Council approved non -FEMA change orders. Fiscal Impact: Budgeted FY 08/09 � New Appropriation Not Applicable ® Budget Amendment Required Amount Budgeted Source of Funds (title and #) Account Number Addit. Appropriation Requested $75,114.30 699.6150.301.000 699.6150.301.000 $4,760.99 North State Fire Reserve Museum Project Recommended Action(s): 1. Accept the work as complete; 2. Authorize budget amendment; 3. Direct the City Clerk to file the Notice of Completion with the County Recorder for the Repairs at the Grace Hudson Museum, Specification No. 08-13. Alternative Council Option(s): Determine the work is not complete and/or remand to Staff with direction. Citizens advised: N/A Requested by: Sage Sangiacomo, Director of Community Services Prepared by: Mary Horger, Purchasing Supervisor Coordinated with: Jane Chambers, City Manager Attachments: 1. Purchase Order Summary, 2. Notice of Completion ter. Approved: s'J,ane Chambers, City Manager i� Nr Co oi LO CN CD 03. Attachment #1 w 0 :t CD a N Cl 0 N M !�2 (D CR F": C! R Co t:n 4 0 M p a w r, C'i rl Lo 0 r- 10 �2 CM -q- 'q r— C3 Cl! CD 0) EX) Co C%j a� EA C= 0 '3 '3 0 CD '3 C' 'D n U3 M o 't 0 C) 0 C:' 0 CD Q 0 N M q CD q R 0 q 'M a) '6 'f .6 _. M- r-- N. 0 _ v M o w w r-- N 11 am P- h r- R Cli C"! V 0:1 E N ti0 + U e W o st jp rn a U- Ca 0. N CCD 't rl- 1- CR rl� 0) CD C� C? M 0 Cloqi T CO M to CIJ W Co [ -. C14 CD 0 W) Cor� 101 CQ M0) 0 CD t-: Nt IR q "IW t R R — 'q �t Co I, ce) CD LO CM Cl Co to c. CD Co M LO Cni a 't 0 O M C) 0 0 q q q C-4 C5 a 0 C3 0 , C%j ON . v Co r-- vi t-.: IN* CO CO OMFM �L6 21 Eq ti t�- Ocl CO wy N Co M U-3 (D C%% V rL Q) E 0 E -Z V, E a' ro C" E O 'G a) Co NC3 o a) -Cc: o F- 'u - = Z •0 U) LL a -0 v M o r Cd r- — — !L - Co g (D Lu L) Cc, r- It V d) at = : > U U) P M --d zac�xM CE 0 z a, CL Ln 0 0 C� 1; In a as 10 -0 10 'a 0 0 0 0 0 0 ItDQ Q<<L)0UUt)F < 1T C" U, CO Nr Co oi LO CN CD 03. Attachment #1 Please return to: CITY OF UKIAH 300 Seminary Avenue Ukiah, California 95482-5400 (707) 463-6200 NOTICE OF COMPLETION NOTICE IS HEREBY GIVEN: Attachment #2 1. That the real property described is owned by the following whose address is: City of Ukiah, 300 Seminary Avenue Ukiah California 95482-5400 2. That the nature of the title to the Repairs to the Grace Hudson Museum Specification No. 08-13 of all said owners is that of fee simple. 3. That on the 23rd day of January 2009, the Contract work for this project was actually completed. 4. That the name and address of the Contractor is Cupples & Sons Construction 221 Olive Lane, Suite G, Ukiah, California 95482. 5. That the real property herein referred to is situated in the County of Mendocino, State of California, and is described as follows: City -owned property identified as the Grace Hudson Museum located at 431 South Main Street Ukiah, California. City Council Approval CITY OF UKIAH, a Municipal Corporation March 18th, 2009 By: Date Linda Brown, City Clerk Date State of California County of Mendocino On before me, Date Name and Title of Officer (e.g. "Jane Doe, Notary Public") personally appeared Name(s) of Signer(s) who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument, and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed this instrument. I certify under Penalty of Perjury under the laws of the State of California that the foregoing paragraph is true and correct to the best of my knowledge and belief. Place Notary Seal Above WITNESS my hand and official seal. Amanda T. Davis ,.ITEM NO.: qw- MEETING D. AGENDA SUMMARY REPORT 7c March 18, 2009 SUBJECT: UPDATE REPORT REGARDING STATUS OF WATER EMERGENCY CONDITIONS NECESSITATING EMERGENCY RESOLUTION TO EXPEDITE CONSTRUCTION OF GOBBI STREET WATER WELL Background: On March 4, 2009, at a regular meeting of the Ukiah City Council, an emergency resolution was adopted to expedite the construction of a water well at the corner of Gobbi Street and Orchard Avenue. Pursuant to Public Contracts Code Section 22050(b)(1), the City Council delegated authority to the City Manager to order action pursuant to subparagraph (a)(1) of that section and directed the City Manager to undertake all steps necessary to have the well constructed without going through a competitive bidding process. Pursuant to Public Contracts Code Section 22050(b)(3), adoption of this resolution requires the City Manager to report back to the City Council at its next regular meeting setting forth the reasons justifying why the emergency will not permit a delay resulting from the competitive solicitation for bids for the well and why the action is necessary to respond to the emergency. Discussion: The reasons for the emergency were set forth in Resolution No.2009-12. These reasons continue to exist: 1) the State of Emergency declared by the Governor of California due to drought conditions, 2) recommendation to municipalities from Victoria Whitney, Deputy Director for Water Rights for the State of California Water Resources Control Board, that drought conditions may necessitate suspension of surface water rights this summer and to secure groundwater sources, and 3) the time required to drill, develop, and construct a temporary connection from a new groundwater well into the City's water distribution system is not sufficient to comply with the noticing requirements of the Public Contracts Code formal bidding process. As of the writing of this staff report, city staff is in the process of undertaking additional testing activities at several potential well sites as directed by City Council at its meeting of March 4, 2009. A result of initial testing has led staff to conduct additional test borings at the Gobbi street site. These additional test borings will include drilling to 300 ft, which is scheduled to be completed by Thursday, March 19, 2009. Fiscal Impact: Budgeted FY 08/09 1-1NewAppropriation � Not Applicable Budget Amendment Required Recommended Action(s): Receive the report. Alternative Council Option(s): Citizens advised: n/a Requested by: Tim Eriksen, Director of Public Works/City Engineer Prepared by: Ann Burck, Deputy Director Public Works – Water & Sewer Division Coordinated with: Jane Chambers, City Manager Attachments: Approved: r �,� f � _ :Jane Chambers, City Manager i` ITEM O • March 18, 11 • DATE:MEETING city cj,- cukiah AGENDA SUMMARY • • REPORT• CITY COUNCILON THE ENHANCEMENT OF PROGRAM.DEPARTMENT'S PUBLIC BENEFITS PROGRAM WITH THE ADDITION OF "KEEP YOUR COOL" Several Utilities in California are taking advantage of the services of Humitech, Inc. to help their commercial customers reduce energy costs associated with their refrigeration equipment. The following provides the details on how this offer would be administered: 1. The Keep Your Cool program focuses on energy saving opportunities within the food and beverage industry, focusing on reducing electrical consumption of refrigeration equipment. Between 30% and 50% of the electricity used in restaurants, grocery stores, liquor stores, convenience stores and bars is consumed by refrigeration. 2. The most common measures installed are door gaskets, strip curtains and auto door closers. 3. Due to the energy savings for gaskets, strip curtains and closers, these items can be installed at no cost to the customer and be an excellent energy -savings and demand reduction for the City. 4. The program costs are not to exceed $32,000 and will be administered through Energy Services Group (ESG), the City's Public Benefit administrator. 5. It is anticipated that this investment made by the City of Ukiah could produce up to 500,000 kWh savings (Ukiah's annual target is 264,000 kWh). Performance in late 2008 in other cities verifies this level of savings. (data available upon request) 6. In Ukiah, Humitech suggests a brief, concentrated effort to systematically approach and serve all eligible customers in our service area. 7. Humitech will "package" the delivery of this service in Ukiah in coordination with other NCPA members during the Spring (probably April and/or May 2009). Continued on Page 2 Recommended Action(s): Approve Public Benefit Keep Your Cool program and authorize ESG to administer the program. Alternative Council Option(s): N/A Citizens advised: None Requested by: Mel Grandi, Electric Utility Director Prepared by: Mel Grandi, Electric Utility Director Coordinated with: Jane Chambers, City Manager Attachments: 1- Flyer Approved: Jani; tli am . e g aMager Subject: Electric Utility Department's Public Benefits Program "Keep Your Cool" Meeting Date: March 18, 2009 Page 2 of 2 8. The customer engagement process will include: - a letter sent to eligible customers from the City announcing the availability of this program - a postcard sent from Humitech to all eligible customers inviting their participation - customers who have responded will be called by Humitech's field estimator - scheduling installations - performing installations - verifying installations (inspections by Humitech and City) 9. Installation information and energy savings will be reported by Humitech to City and ESG. The City will report the energy and demand savings to the California Energy Commission (CEC) through their E3 reporting system. 10. This service will be billed through Energy Services Group as another service provided by ESG and funded from the Public Benefits Demand side management account. X Budgeted FY 08/09 F-1 New Appropriation F-1 Not Applicable F-1 Budget Amendment Required Amount Budgeted Source of Funds (title and #) Account Number Addit. Appropriation Requested $ 32,000.00 EU — Public Benefits 806.3765.250.005 cu 0 0 A 132 RR I I�� I a ITEM N MEETING D� city of-'z-ikiah AGENDA SUMMARY . . 7e March 18, 2009 SUBJECT: AUTHORIZE THE CITY MANAGER TO EXECUTE A CONTRACT AMENDMENT WITH BORISMETRICS IN THE AMOUNT OF $22,000 TO COMPLETE A COST OF SERVICE STUDY AND RATE STUDY. AND AUTHORIZE A BUDGET AMENDMENT FOR THE SAME. The Electric Utility Department faces a number of issues related to the fast paced and volatile energy industry. This includes electric energy and gas supply volatility, Market Redesign Technology Update (MRTU) restructuring of the wholesale electric grid in California, National Electric Reliability Corporation (NERC) mandates relating to system reliability and reporting requirements, electric system reliability enhancements, and carbon footprint requirements. These as well as other utility issues place a significant burden on our current rate structure. The existing rate structure was adopted over twelve years ago (August 1, 1996) with no provisions for many of the current program costs. As an example of the electric energy supply volatility, wholesale power costs increased 24% or $1.6 million over a one year budget cycle (07-08 to 08-09 budgets). Although measures have been implemented to stabilize energy costs, our rates were not designed to meet these revenue requirements. The Electric Utility Department, through a Request For Proposal (RFP) process, originally contracted with Borismetrics, Inc. to perform a Cost of Service Analysis (COSA) and Rate study in December 2006. The RFP evaluation considered four proposals for study methods, experience with California municipal rate studies, cost, and experience with electric utility operations. Borismetrics, Inc. was chosen through that RFP process and is still considered highly qualified and familiar with Ukiah Electric Department's operation. The original COSA and Rate study was initiated in the Spring of 2007. Data was collected and analyzed initially, but due to several management changes, no direction nor action on the analysis was made. While a template of analysis is available for the study, new data is required and a new management review with input from the current Finance Manager is required. In order to preserve the continuity of knowledge and models developed for the Electric Utility Department, It is recommended that the original contract be continued to provide a much needed Cost of Service Analysis and Rate study. Therefore, staff is requesting that Council authorize the execution of an Continued on Page 2 Recommended Action(s): Authorize The City Manager To Execute A Contract Amendment With Borismetrics In The Amount Of $22,000 To Complete A Cost Of Service Study And Rate Study, And Authorize A Budget Admendment For The Same. Alternative Council Option(s): Perform a second Request for Proposal (RFP) and selection. Not recommended, due to loss of time and knowledge gained and models already developed from the work to date for the Electric Utility Department. Citizens advised: None Requested by: Mel Grandi, Electric Utility Director Prepared by: Mel Grandi, Electric Utility Director Coordinated with: Jane Chambers, City Manager Attachments: Approved: rte- J Chambers, City Manager Subject: Contract Amendment with Borismetrics Meeting Date: March 18, 2009 Page 2 of 2 amendment to the current contract with Borismetrics for the not to exceed amount of $22,000, and approve a budget amendment in the amount of $22,000 for the same. IXI Budgeted FY 08/09 El New Appropriation El Not Applicable F� Budget Amendment Required Amount Budgeted Source of Funds (title and #) Account Number Addit. Appropriation Requested EU -Depart. Expenses 800.3733.250.000 $22,000.00 From: TO: Amount: 800.3733.800.000 800.3733.250.000 $ 22,000.00 City }-Wki:ah March 18, 2009 SUBJECT: APPROVAL OF APPLICATION TO ALLOW THE REMOVAL OF MORE THAN 50% OF THE EXTERIOR FRONT FACADE OF A BUILDING OVER 50 YEARS OLD LOCATED AT 113 WEST PERKINS STREET, UKIAH SUMMARY: The property owner of 113 West Perkins Street has filed a Demolition Permit application to remove more than 50% of the exterior of the building ( front fagade) at Schat's Courthouse Bakery and Cafe. City Code Section 3016(A) definition of demolition includes the removal of 50% or more of the exterior components of the building. Based on this definition and the age of the building (more than 50 years), City Council review and approval of a Demolition Permit is required. The proposed modifications to the face also require review and approval of the Site Development Permit (SDP 09-01), which would be heard as a separate action at a later date by the Planning Commission. On March 4, 2009 the City Demolition Permit Review Committee (DPRC) considered the application and Historical Profile prepared by Judy Pruden, and unanimously found that none of the criteria in UMC Section 3016(E) (attachment 5) applied; therefore the structure is not historically or architecturally significant. Based on the recommendation of the Demolition Permit Review Committee, Staff is recommending approval of the Demolition Permit. Continued on Page 2 Recommended Action(s): Approve the Demolition Permit to allow the removal of more than 50% of the exterior of the building located at 113 West Perkins Street, based on the finding that it does not have historical or architectural significance. Alternative Council Option(s): Do not approve the Demolition Permit, and provide processing direction to staff as to the structure's future disposition. Citizens advised: Noticed according to the requirements of the Ukiah Municipal Code. Requested by: Zachary Schat, Property Owner Prepared by: Jennifer Faso, Associate Planner Coordinated with: Charley Stump, Director of Planning and Community Development and Jane Chambers, City Manager Attachments: 1. Demolition Permit Application Materials 2. Location Map 3. Memorandum from Judy Pruden, Chair, Demolition Permit Review Committee 4. Memorandum from David Willoughby, Building Inspector 5. Ukiah Municipal Code Section 3016 `J6ne Chambers, City Manager Subject: Application to Remove More Than 50% of the Exterior Front Fagade of a Building Over 50 Years Meeting Date: March 18, 2009 Page 2 of 2 Fiscal Impact: D Budgeted FY 08/09 � New Appropriation Not Applicable Budget Amendment Required Attachment # _ ) Property Owner: ��G1���-.`� ` • �ctk Applicant: AILAN w-et-SON T���fCtt 4`{'u I I L o®1 -ZZ -Ce -®Z Property Address: 1,)i �!V . �� 1 �� `;,T• Assessor's Parcel No.: hS o Zoning: _ –t General Plan Designation: e- M yAE;j2GtAd_ r Age of structure: 1 How was age determined?t`rK Is property located in the City of Ukiah Architectural and Historical Resources Inventory? a If yes, 1) Is it one of the 200 individually analyzed properties? 2) Is it included in a potential Historic District? Which one? 3) Is it one of the properties not considered worthy of specific analysis? Describe structure's current condition: TWL COM 0(-044- ALCL &L..F— e7e t 47►� t c -a.. `� t t�� '1°r'i'i ►7, . Describe purpose of demolition: �1'f1h � l� G-F� I�t'�L1 �3� tif) ✓ til�c..L`°� i.,'�h11 �`�' `°t' try� �UtL A1T� �S Describe all salvageable archaic materials and any salvage plans: ►,S �'�'f`� wILL, > 02FFP TV ?A tom) ssltr�T�wss ��s�t Can the structure be moved? b Are there plans to move the structure?fl Describe any moving plans (location, timing, etc.): General comments regarding historic, architectural, or cultural significance of building/property: �,u-t►J�- 0-2. , IT011�- F -le ty_ Describe any unique features of building or property- ®L-1) 'F,01 LD 1 1,4� S Recommendation for City Council action: Ulf' ?.1eI14Zg Describe the Demolition Permit Review Committee's actions on the application (page 2). go N D n C H D J R D H Y0 > N 17._0, .� n D N i � o x n IrI 1 n 1 u r, nnll !'.I nnnnn 11 i ( �11 I, Il (Iln $1 } 1 m S 0 o i�i III us w {i f �lj j�ll i#IS n 1{ 1 00 000,1;1 1 ��� � 1r1't.,iil lh ! ,�` i . ! .,1. s s m 7 hF _ a s y $ 4Z4 1 �� �� 71i� Ilftt,(I Ilovl t il4Aju' II) ( I !{ II ru- gI'I 1, I N 00 00 0 a _ 1111 1 i $`� I1 1 {� 1 tl :i7.. 8 10• III 1 ( ( lt. II {t to fn m o -0 �T` O IB' -6• � o �y a > > � alan nicholson NEW /OLD COMPARISON ELEVATION - � $ D \ N Design Studio SCHAT'S COURTHOUSE BAKERY CAFE o y Z m N 113 WEST PERKINS STREET 11 W 3201 MILL CREEK ROAD � o P.O. BOX 577 C b � TA -MAGE. CAt1FORNIA 95461 UKIAH, CA. 95482 O p: 707, 972. 8879 F: 707.462. 1045 Attachment # DATE: March 2, 2009 TO: Charley Stump, Director of Planning FROM: Judy Pruden, Chair Demolition Permit Review Committee RE: 111 & 113 W. Perkins Street Partial Demolition Application The current Schat's Bakery Cafe is the merged building of two different structures. 111 W. Perkins Street was built in 1885 and was the City's Post Office to 1890. In 1911 the building was partitioned into a two bay or two part commercial structure. The east half was generally a real estate business and the west half a restaurant with names like Ukiah Grill, Good Luck Cafe and Little Davenport. The most famous owners were the Scudders. Laura Scudder passed the California Bar exam by studying her customers' law books. They later moved to southern California and on to fame and fortune in the potato chop business. There are no frontal pictures of this building only photographs taken on the diagonal. It appears to be a simple brick building with little decorative style. The commercial building records indicate the building has been remodeled several times. The most extensive was done in 1989 with a complete Fagade change. In 2000 the building was joined to 113, adding bathrooms and a dining area to Schat's Bakery. The historical significance of this building is as a contributing member to our Downtown history. It has been in continual use for 114 years, most often as an eatery, thus a social gathering place, and a perfect example of business success because of its location to the Mendocino County Courthouse. 113 W. Perkins was built in 1898 as an architectural companion to a large two- --story building, which was erected in 1892 on the corner of Perkins and School Streets. The early photos and drawings show a striking facade (see attachment). The Preston family demolished the two-story building in 1959, leaving 113 in use. 113 was originally two-part commercial. The east half was a candy store until 1914 and then it became a grocery store. The west half was a shoe store from 1898 to 1923. The 1917 fire, which started on this block, did extensive damage to the back half of the building. In 1917 Herman Mattern installed state-of-the-art baking ovens. He opened the Model Bakery on September 1, 1917. There are numerous photos are on file at the Held-Poage Library. In 1923 the bakery expanded to include the entire building. 113 has been in continuous use as a bakery for 92 years. Demolition Review Committee March 4, 2009 Page 1 113 has the same historical significance as 111. It serves as an important contributing member to Downtown history. The original 1917 facade was mostly in tact until 1988 when the brick was sand -blasted. The significance of these buildings is primarily in their social context to the community's history. A baking business that has been in existence for 92 years is an important aspect for this town to remember. Although the facades have been remodeled, 113 very much retains a historical appearance and feel. The proposed remodel does not appear to affect in any significant way this character. If the windows or doors are to be changed, their replacements should mimic the 1923 style so as to bring back a more traditional look. Demolition Review Committee March 4, 2009 Page 2 "I �'" ' =11 TO: Demolition Permit Review Committee FROM: David Willoughby, Building Official DATE: March 3, 2009 SUBJECT: 111 and 113 W. Perkins St. On March 3, 2009 I reviewed the Demolition Permit application materials and performed a site view. From the assessors records it appears that this structure (listed as a commercial building in the assessor's records) was built around 1890. It appears that the fronts of the structures are in fair condition. The structures are Unreinforced Masonry Buildings which have had some seismic retrofitting completed along the North/South interior bearing wall and along the back wall of the buildings on the South end. The storefront has not been seismically retrofitted yet and the entrances are not handicap accessible. Review of the Ukiah Architectural and Historical Resources Inventory Report showed no mention of the property in any category. Demolition Permit Application Materials. Attachment Demolition 3016: Modifications to the California Building Code A. The section of the California building code, relating to applications for building permits is modified to require in an application to demolish a building, the date when the building was first constructed, if known. The terms "demolish" or "demolition", as used in this section, shall mean: 1) the tearing down of all or part of a building or 2) the cumulative alteration of a building pursuant to one or more building permits issued over a five (5) year period, where fifty percent (50%) or more of the structural or exterior components of the building are removed or replaced. The review required by this section shall occur with the application for the permit that: 1) results in the tearing down of all or part of the building or 2) authorizes the cumulative alteration of the building that equals or exceeds the specified percentage. B. The section of the California building code, relating to the issuance of a building permit, is modified to require that, as to buildings constructed fifty (50) years or more prior to the date of application, the director of planning or his/her designee shall determine whether: 1. The building is an accessory building such as, but not limited to, a garage, storage shed, or carport, whether attached or detached to a main building; except that certain accessory buildings, such as carriage houses, which are presumed to have historic or architectural significance shall be subject to further review as provided in subsection D of this section, unless the building is subject to demolition under subsection B2 of this section. 2. Immediate demolition of the building is necessary to protect the public health or safety and the failure to immediately demolish the building would constitute a serious threat to the public health or safety. C. If subsection 131 or 132 of this section applies to the building, no further review shall be required under this section and the permit shall be issued in accordance with the provisions of the California building code. D. If the planning director finds that neither of the exceptions in subsection 131 or 132 of this section applies to the building, a building permit to demolish a building shall be subject to further review in accordance with this section. The planning director shall transmit the proposal to the demolition review committee, or other official reviewing body established by the city council, for review, comment, and a recommendation to the city council. Once the demolition review committee formulates a recommendation concerning the disposition of the proposed permit, the planning director shall schedule and duly notice the matter for a public hearing and decision by the city council. The public noticing shall indicate the day, time, place, and purpose of the public hearing, and how additional information about the subject matter can be obtained. The public noticing shall be accomplished in the following manner: 1. Publication in a newspaper of general circulation in the city at least ten (10) days prior to the hearing. 2. Mailing or delivery at least ten (10) days prior to the hearing to the owner(s) of the subject property, or his/her agent, and to the project applicant, if the applicant is not the owner. 3. First class mail notice to all owners (as shown on the latest available Mendocino County tax assessor's equalized assessment roll) of property within three hundred feet (300') of the subject property. E. n reviewing proposed permits, and formulating recommendations to the city council, the demolition review committee shall consider any information provided during the meeting, and shall use the following criteria. The structure: 1. Has a special or particular quality such as oldest, best example, largest, or last surviving example of its kind; or 2. Exemplifies or reflects special elements of the city's cultural, social, economic, political, aesthetic, or architectural history; or 3. Is strongly identified with persons or events significant in local, state, or national history. F. If the demolition review committee finds that any of the criteria listed in subsection E of this section apply to the building proposed for demolition, it shall recommend denial of the permit to the city. G. 1. The city council shall conduct a public hearing pursuant to subsection D of this section to consider the recommendation of the demolition review committee, and to determine if any of the criteria listed in subsection E of this section apply to the building proposed for demolition. If the city council determines that any one of the criteria applies, it shall make a corresponding finding to that effect. 2. At the hearing, the applicant shall have the opportunity to present evidence that a viable market does not exist for the building, taking into account the condition of the building, the probable cost to.put the building into marketable condition, and the uses of the property allowed under existing or probable future zoning regulations. The city council shall consider such evidence offered by the applicant and any other information presented at the meeting by any interested party or by staff, to determine whether or not a viable market exists. "Viable market" means that it is reasonably likely that the building could be sold within a commercially reasonable period of time for more than the seller would be required to invest in the purchase of the property and preparing the property for sale, or that the property could produce a reasonable return on the amount of money it would take to purchase the property and prepare the building for income producing purposes. "Reasonable return" means the average rate of return on real estate investments in the Ukiah Valley. 3. If the city council determines that a viable market exists: a. It shall so notify the building official who shall not issue the permit. The city council shall determine whether a viable market exists based on substantial evidence presented at the hearing, or, it may assume that a viable market exists, if the applicant fails to present substantial evidence that a viable market does not exist; b. Not more than once within any twelve (12) month period, the applicant may submit a new application for a permit and the city council may reconsider whether a viable market exists: (1) Upon a showing by the applicant that market conditions have changed; or (2) Based upon new information that in the exercise of reasonable diligence the applicant could not have produced at the first hearing. 4. If the city council determines, based on substantial evidence, that a viable market does not exist, the issuance of the permit shall be stayed for a period of ninety (90) days. a. During that ninety (90) day period, the city shall do the following: (1) Determine whether other alternatives to demolition exist, which are acceptable to the applicant, that would preserve the historic, architectural or cultural significance of the building; (2) Determine whether funds are available from any private source for the acquisition and preservation of the building through a negotiated purchase on terms acceptable to the applicant; or (3) If sufficient funds are available from any private source and a negotiated purchase is not possible, determine whether to acquire the building through eminent domain. b. If within the ninety (90) days, the city does not reach agreement with the applicant or commence acquisition of the building, the building official may issue the permit in accordance with the provisions of the California building code. c. If within the ninety (90) day period, the city either: 1) reaches agreement with the applicant or 2) commences acquisition of the building, the building official shall not issue the permit. d. However, the building official shall continue to process the application for the permit in accordance with the California building code, if the city and the applicant terminate their agreement or the city fails to diligently pursue or abandons acquisition of the building. e. The city manager or his/her designee shall inform the building official whenever the city and the applicant terminate their agreement or the city fails to diligently pursue or abandons acquisition of the building. f. If the building official has issued a demolition permit under this subsection and the permittee applies to extend the permit an additional one hundred eighty (180) days in accordance with the applicable provisions of the California building code then in effect, the building official shall refer the application to the city manager for an initial determination as to whether market conditions have changed. The city manager shall make the determination within ten (10) days after the application is referred by the building official. If the city manager determines that market conditions may have changed and that a viable market may exist for the property, he or she shall schedule the matter for a hearing before the city council to be noticed and conducted in accordance with subsection D of this section and this subsection G. However, at the hearing the city shall have the burden of proving by a preponderance of the evidence that market conditions have changed and a viable market exists. If the city manager determines that market conditions have not changed, he or she shall so notify the building official and the applicant. Upon such notification, the building official shall further process the application to extend the term of the permit in accordance with the requirements of the California building code then in effect. If the city council conducts a hearing upon referral by the city manager, the city clerk shall provide written notification to the building official and the applicant of the city council decision. If the city council decides that a viable market exists, the building official shall not issue the permit, but the provisions of subsection G3b of this section shall apply. If the city council decides that a viable market does not exist, the building official immediately shall proceed to further process the application in accordance with the applicable provisions of the California building code then in effect. 5. "Diligently pursue acquisition" means taking all steps within the time required by law to acquire the building by eminent domain. 6. References to "applicant" herein shall include the building owner. H. The planning director shall provide a written notice of the city council determination to the applicant. The written notification shall be mailed or hand delivered within five (5) days from the date of the city council's decision. The notice shall include the finding(s) and decision made by the city council and a copy of this section. I. The applicant for a permit for a building determined to have historic, architectural or cultural significance shall salvage the building materials for reuse to the maximum extent feasible, and shall ensure that upon completion of the demolition, the site is left in a safe, presentable, and clutter free condition. J.1. Grounds For Reconsideration: The city council may reconsider a decision under this section within sixty (60) calendar days from the date the decision was made, if information that may have materially affected the decision was: a) misrepresented by the applicant, or b) not disclosed by the applicant, if the applicant knew or should have known that the information may have affected the city council decision. "Information" as used herein means matters of fact or law. A decision may not be reconsidered, if all three (3) of the following have occurred: The permit: a) has been issued, b) did not at the time it was issued violate any provision of the California building code, as adopted by the city, or any other city ordinance or state or federal law, and c) the permittee has commenced demolition in good faith reliance on the permit. 2. Procedure On Reconsideration: Reconsideration of a decision under this section may be placed on the agenda for a regular city council meeting by any member of the city council who voted in favor of the original decision. Notice of any meeting where reconsideration is on the agenda shall be provided in accordance with subsection D of this section. If already issued, the permit shall be suspended from the date that an eligible city council member requests that the matter be placed on the agenda and until the city council makes a final decision upon reconsideration. The building official shall notify the applicant in writing of the permit suspension. At the meeting, the city council shall determine, based on evidence provided to the city prior to or during the meeting, whether reconsideration is permitted under subsection J1 of this section. Any motion to reconsider the decision shall contain findings supported by substantial evidence. If upon reconsideration the city council makes a different decision, the city clerk shall provide notice of that decision to the building official and the applicant/permittee within five (5) working days after the decision is made. If, upon reconsideration, the city council determines that a building has historic, architectural, or cultural significance, and the building official has issued a permit based on the previous decision, the building official shall revoke the permit. If the previously issued permit has expired, the building official shall deny an application for a new permit, unless the permit is issued in accordance with subsection G4 of this section. (Ord. 838, ❑1, adopted 1984; Ord. 927, Ell, adopted 1992; Ord. 1014, 1:11, adopted 1998; Ord. 1103, Ell, adopted 2007) ITEM NO.: 9b MEETING DATE: March 18, 2009 City «f 'Z1%iah REPORT AGENDA I SUBJECT: PUBLIC HEARING ON UNIFORM CONSTRUCTION COST ACCOUNTING COMMISSION FINDINGS: 1) ALICE STREET PROJECT, 2) GOLF COURSE TRIBUTARY PROJECT Background: Council may recall that two separate complaints were lodged against the City of Ukiah. The first was made regarding the city's Alice Street project. The second was made regarding the city's Municipal Golf Course Seasonal Tributary project. The process for the receipt of the complaints, review, and hearing before the California Uniform Construction Cost Accounting Commission (CUCCAC) is now complete for each complaint. The commission determined that the City was in violation of the Uniform Cost Accounting Act's $30,000 force account limit in both cases. In the case of the Alice Street project, the city exceeded the force account amount by $3,046.67. In the case of the Municipal Golf Course Seasonal Tributary project, the city exceeded the amount by $2,419.00, as determined by audited review. The City is required to place this item on the Council's agenda for a public hearing and have the Commission's findings reviewed by the governing body. In accordance with this requirement, both items have been placed for public hearing and the following information provided: Alice Street Project: The Commission's findings regarding the Alice Street Project are Attachment #1. This includes a letter dated March 2, 2009 from the Commission, and a copy of its findings. Also, for further background, a copy of the City's response for the Commission's hearing is attached, dated January 22, 2009. Municipal Golf Course Seasonal Tributary Protect: The Commission's findings regarding the Alice Street Project are Attachment #2. This includes background information contained in the City's response for Commission consideration dated February 10, 2009. Continued on Paae 2 Recommended Action(s): Receive the report Alternative Council Option(s): Provide direction to staff. Citizens advised: Requested by: Prepared by: Jane Chambers, City Manager Coordinated with: Tim Eriksen, Director of Public Works, and Sage Sangiacomo, Director Community Services Attachments: 1) CUCCAC Findings on Alice St. and City's 1/22/09 Response to CUCCAC , 2) CUCCAC Findings of Golf Course Tributary Project, Approved:' e Chambers, City Manager Subject: Uniform Cost Accounting Findings Meeting Date: March 18, 2009 Page 2 of 2 Discussion: The Commission considered each of the complaints at different Commission meetings. Staff was in attendance for each meeting via phone conferencing. Staff heard the discussion at the Commission level and provided information for the Commission's consideration. Staff was surprised by the City of Ukiah's reputation with Commission members. The City was characterized as being a long-time source of complaints and exhibiting a cavalier attitude towards meeting its obligations under the code. The sources and specifics for this reputation appear to have been many years in the making. After hearing the discussion at the Commission, and also, as part of the meeting described below, this point of view is recognized and understood by current city staff. City staff at all levels of the Ukiah organization are fully committed to moving forward and establishing an improved reputation for the City with regard to force account administration. A meeting was held with interested parties, including CIFAC staff, city staff, and representatives from the North Coast Builders Exchange, on Friday, March 6, 2009 to begin this process. The discussion from this meeting contributed to some of the action steps that the City is taking to improve its performance in force account administration. City staff appreciates efforts made by Sally Riley of CIFAC, extending herself for the extra travel and time involved to participate in the meeting here in Ukiah, and for her willingness to provide some additional training opportunities for city staff. Staff also appreciates the efforts of the North Coast Builders Exchange to assist with providing additional training opportunities. Action steps for improved performance: ® The City Manager has directed that no projects estimated in excess of $20,000 are to be undertaken without review and permission of the City Manager. ® Estimates for projects exceeding $15,000 will be sent to CIFAC for review and suggestions, with the understanding that CIFAC is not responsible for outcome of any given project, nor should CIFAC review be considered "permission" to undertake any given project. ® A uniform estimating document is in use for all departments and projects. ® A CUCCAC manual has been provided for each field supervisor. ® All personnel associated with force account projects will receive additional training from CIFAC, in cooperation with the North Coast Builders Exchange. Staff anticipates that all further force accounting projects can be conducted well within the $30,000 boundary, thereby avoiding any additional complaints for new projects. Although the process of going through the two complaints has taken a good deal of staff time and involved City Attorney time, it has resulted in improved organizational working knowledge of the force account manual, and initiated a process of improving the City's various relationships with stakeholders in the construction and labor communities. Fiscal Impact: Budgeted FY 08/09 1:1 New Appropriation 7 Not Applicable 7 Budget Amendment Required Gene Cortright Director of Public Works City of Fairfield -Cities Chairman Jeff Armstrong Laborers Union - Labor Vice -Chairman Linda Clifford Chief Financial Officer C.C. Myers, Inc. Secretary Eddie Bernacchi NECA, Politico Group Subcontractors Jay Hansen Legislative Director State Building & Construction Trades Council of California Labor Robert Byrd Auditor -Controller County of Riverside - Counties Guiselle Carreon Director of Purchasing District - Schools William Dildine Trojan Electric, Inc. Subcontractors David Gomez Director Palmdale Water District District — Special Districts David A. M-Cosker Chairman of the Board Independent Construction Co. General Contractors Alec Pringle Director of Engineering Services Department County of Ventura -Counties Lisa Miller -Strunk Contractors State License Board Jane Chambers City Manager 300 Seminary Avenue Ukiah, CA 95842 Dear Ms. Chambers: March 2, 2009 The Construction Industry Force Account Council filed a request with the California Uniform Construction Cost Accounting Commission (the Commission) for an account review of your city's Alice Street Project. It was their belief that this construction project exceeded the $30,000 force account limit pursuant to Public Construction Code 22042 (b). After discussions with your City Attorney David Rapport and Public Works Director Tim Eriksen on February 4, 2009, the Commission deliberated and determined that the City of Ukiah's Alice Street Project violated the Act's $30,000 force account limit. This is the first violation by the City of Ukiah within a ten-year period. Being a signatory to the Act, and pursuant to Public Contract Code 22044, the City of Ukiah must place this item on the agenda and present the Commission's findings to its governing body within 30 days of receipt of this letter. Enclosed with this letter you will find a Summary of Findings which further describes the Commission's action taken at its meeting on February 4, 2009. Please send a copy of your minutes, addressed to the commission, to the address found below. If you have any questions regarding this matter, please contact me at (707) 428-7493. TCo rtright Chairman State Controller's Office, Local Government Policies Section P.O. Box 942850, Sacramento, CA 94250 Phone: 916-322-9105 * Fax: 916-327-3162 March 2, 2009 Cc: Catherine A. Hilliard, CIFAC Tim Eriksen, City of Ukiah DPW David Rapport, City of Ukiah Attorney Commissioner Jeff Armstrong Commissioner Gene Cortright, Elected Chairman Commissioner Robert Byrd Commissioner Guiselle Carreon Commissioner Linda Clifford, Secretary Commissioner William R. Dildine Commissioner David Gomez Commissioner Jay Hansen, Vice -Chairman Commissioner David A. McCusker Commissioner Alec Pringle Commissioner Lisa Miller -Strunk �Tj jljjj�11�� California Uniform Construction Cost Accounting Commission RE: City Of Ukiah - Alice Street Project Public Hearing: February 4, 2009 WHEREAS, the Construction Industry Force Account Council (CIFAC) did, on October 6, 2008, make a formal complaint to the City Of Ukiah-ATTN: Hon. Douglas Crane, Mayor of the City of Ukiah that paving improvements to Alice Street (the "Alice Street Project") exceeded the force account dollar limit allowed by the Act, with a follow up complaint in writing to the Construction Uniform Construction Cost Accounting Commission (CUCCAC), and WHEREAS, the CUCCAC took CIFAC's complaint under consideration and all information provided by CIFAC in writing and therewith made a finding that the City of Ukiah was in violation of the Act's $30,000 Force Account Limit in the CUCCAC's public hearing on November 7, 2008 and thereafter notified the City of Ukiah in writing of such finding on November 25, 2008, and WHEREAS, on December 9, 2008, the City of Ukiah then requested in writing that the CUCCAC hear additional information from the City of Ukiah in the Commission's next regularly scheduled public hearing on February 4, 2009, which request was approved in writing by the Chairman Gene S. Cortright on December 18, 2009 and confirmed on January 20, 2009, and WHEREAS, at the public hearing on February 4, 2009, the information provided by CIFAC was confirmed by the legal representatives of the City of Ukiah in a letter of January 22, 2009 and during the public discussion at the hearing, NOW THEREFORE, the finding of the Commission is as follows: FINDING: The City of Ukiah's Alice Street Project violated the Act's $30,000 force account limit. (McCosker-Motion, Byrd -2nd - Motion passed 9 -yes, 0 -no, 0 -abstain) Certified by the Chair an an the Secretary of the Commission: DATE: Chairman Zama 19AUdid DATE: 7dwww 28 9009 Secretary January 22, 2009 California Uniform Construction Cost Accounting Commission Attention: Jeanette Consentino, Fiscal Analyst, State Controller's Office Office of the State Controller P.O. box 942850 Sacramento, CA. 94250 VIA FAX 916-327-3162 AND UNITED STATES MAIL Re: Construction Industry Force Account Council (CIFAC) complaint re: City of Ukiah street repair on Alice Street For Commission meeting on February 4, 2009 Dear Commissioners: In this letter the City of Ukiah responds to the complaint filed by CIFAC regarding the overlay of a one block segment of Alice Street in Ukiah performed by City of Ukiah employees on August 11 and 12, 2008. CIFAC complains that the City's accounting shows that it exceeded the force account limit of $30,000 and is incomplete because it did not include the cost of traffic cones, barricades, tack oil and tax. As I will explain in detail below, the actual cost accounting does show that the City exceeded the force account limit. The City also concedes that the value of traffic cones, barricades, tack oil and tax were omitted in making the estimate and in the accounting of actual costs. However, the City will also show that the documents submitted by CIFAC show that the City made a good faith effort to estimate the project cost, which was below the force account limit. It will also show that the value of the omitted items was approximately $206.17. The City has submitted this response to the CIFAC complaint, because it is concerned -that if it is subjected to the kind of scrutiny represented by the CIFAC complaint, and the Commission fails to allow some leeway in evaluating inadvertent and minor omissions or when actual costs exceed good faith estimates, the City could easily be found to have exceeded the force account limit more than three times in ten years. City employees must administer the cost accounting requirements and like all human beings, inevitably, over a 10 year period, they are going to make minor, inadvertent mistakes. Without some consideration of this fact, every local government that has agreed to the Uniform Construction Cost Accounting requirements is equally at risk. The documents filed with the Commission by CIFAC include a spread sheet job estimate and a spread sheet showing the actual costs of the project. The Estimate projected a total cost of $29,987.18, which included the costs of labor, equipment and material, itemized 300 SEMINARY AVENUE UKIAH, CA 95482-5400 Phone# 707/463-6200 Fax# 707/463-6204 Web Address: www.cityofukiah.com Letter to California Uniform Cost Accounting Commission Page 2 Subject: CIFAC complaint re: City of Ukiah force account project Date: January 22, 2009 on the spread sheet and an additional 20% of those total costs to reflect overhead. This was a good faith estimate that attempted to project the cost in accordance with the Uniform Construction Cost Accounting Manual. The estimate included 190 tons of hot mix at $95.50 per ton. It did not itemize sales tax separately. The City's experience has been that the cost of hot mix varies substantially almost from day-to-day, and that oil and related costs were going down at the time of this job. Consequently, the $95.50 per ton was thought to be ample at that time to cover the net cost of hot mix plus sales tax. The Estimate also did not include a cost for traffic barriers and traffic cones. Attached is the Cal Trans Labor Surcharge and Equipment Rental Rates, effective August 1, 2008 through March 31, 2009, showing the daily rental value of barricades and traffic cones. As you can see, barricades have a daily rental value of $.19 each without flashers. The City used 12 barricades without flashers on this two day job for a total cost of $4.56. The daily rental value of traffic cones is $6.73 per 100. The City used 24 cones for a total cost of $1.61 for this two day job. If these costs were added to the City's estimate, the projected job cost would have remained under $30,000. Tack oil is dispensed from a tack pot. The cost of the tack pot was not included in the estimate, but was included in the account of actual expenses at $9. A tack pot holds approximately 500 gallons of tack oil. The tack pot is filled periodically as needed. The oil is not metered so the City does not have an accurate measure of how much oil is used on a single job. As an after -the -fact estimate, the Alice Street project may have used $200 worth of tack oil. If so, the estimate could have exceeded the force account limit by $193.35. Nevertheless, despite these omissions, which had a total value of approximately $206.15, the City clearly made a good faith estimate of the project costs which were under the force account limit. The City also tracked the actual costs in accordance with the requirements in the Cost Accounting Manual. The estimated cost for labor was actually higher than the actual cost: $3,384.72 versus $2,963.70. Other estimated costs were less than the actual cost. For example, the project used 194.68 tons of hot mix rather than 190 tons, but the per ton cost was $94.00, rather than the estimated cost of $95.50, for a total cost of $18,299.82, as compared to an estimated cost of $18,145.00, a $154.82 difference. With the addition of $1,418.23 in sales tax, the actual cost of hot mix totaled $19,718.15, for a total difference between estimated and actual of $1,418.33. Similarly, equipment costs were estimated at $3,459.60, but actual costs were $4,710.99, a $1,251.39 difference. If the 20% overhead charge is applied to the total actual costs, including the nominal cost of cones, barricades and tack oil, the actual cost of the Alice Street project is $33,046.67.1 t The Granite Construction hot mix bill submitted by CIFAC included a net charge of $18,299.92 @ $94/ton for 194.66 tons. The actual cost spread sheet prepared by the City included $18,591.94 for 194.68 tons of hot mix @ $95.50/ton, a difference of $292.12. Subtracting that amount from the total actual cost on the spread sheet of $26,266.63 results in an adjusted actual cost of $25,914.51. when the sales tax from the Granite invoice is added to that figure along with the cost of barricades, cones and tack oil, the total actual cost of labor, equipment and supplies for this project is $27,538.89. Letter to California Uniform Cost Accounting Commission Page 3 Subject: CIFAC complaint re: City of Ukiah force account project Date: January 22, 2009 The difference between the estimated cost of $29,987.18 and an actual cost of $33,046.67 is less than 10%. The Cost Accounting Act and the Cost Accounting Manual do not address this circumstance, where a good faith estimate of project cost is within the force account limit, but the actual cost turns out to modestly exceed that limit. This circumstance should be addressed, because a city decides whether to proceed with a project by force account based on the estimate. The actual cost cannot be known until the project is complete. By the time a city discovers that the actual cost will exceed the limit, it is too late to bid the project. The City contends that the Commission should not penalize a city which proceeds to perform a public project by force account based on a good faith estimate that its cost is within the force account limit, if, as is the case here, the actual cost turns out to exceed that limit by 10% or less. The Cost Accounting Act provides this leeway, when a project is bid. (See Public Contracts Code §22034(f), which allows a city to accept a bid that exceeds the limit on informal bids by 10% or less on a 4/5 vote of the City Council.) The Act apparently recognizes that a city should not be put to the inconvenience and expense of rebidding such a project as a formal bid, if the lowest bid exceeds the limit by 10% or less. In the case of force account work, the prejudice to a city is much greater, if it is not given similar consideration. The documents filed by CIFAC demonstrate that the City was making a good faith effort to comply with the Act and the Manual. The failure to include the cost of cones, barricades, tack oil and sales tax were inadvertent and understandable under the circumstances and had a small effect on the estimated and actual costs. For all of these reasons, the City urges the Commission to find that the City should not be considered to have knowingly or recklessly exceeded the force account limit. The Commission should reserve a determination that a city has exceeded the force account limit for situations where the city did not proceed on the basis of a good faith estimate that the project would cost less than the force account limit and where actual cost exceeds the estimate by more than 10%. Sincer y, a Tim Eriksen, P.E. Public Works Director/ City Engineer City of Ukiah cc: City Manager City Council State of California Business, Transportation, and Housing Agency Department of Transportation Division of Construction Labor.- !. and Equipment Rental Rates (Updated) (Cost of EquipmentOwnership) Effective August 1, 2008 through March 31, 2009 etric 1 backhoe, w/ or w/o loader or dozer C $23.91 OVER 37.3 kW (50 HP) [ >50 Including, but not limited to the following: Bobcat-- 853, 863, 873, 943, 953, 980 Case-- 1845C Deere-- 5300, 5400, 6200, 6300, 6400, 8875 Ford-- L783, L785, 250C, 260C Gehl-- SL5625, SL6625, SL6635 Hydra -Mac-- 1850, 2650, 2650D JCB-- 185Robot Massey -Ferguson-- MF40E, MF50EX Mustang-- 960, 2060 New Holland-- 4630, 5030, 5640, 6640, 7740, 7840, 8240, 8340, L865, LX865, LX885, 345D, 545D Ramrod-- 1750, 1950 Thomas-- T-173HL, T-173HLS, T173HLS II, T -203RD, T- 233HD Trak-- 1700HD, 1700C, 1700CX, 170OXHP Model Code Rate with loader or dozer A $29.64 auger, w/ or w/o loader or dozer B $30.08 backhoe, w/ or w/o loader or dozer C $31.41 TRAFFIC CONTROL & SAFETY DEVICES [ TRAFA] (HOURLY RATES) DELAY FACTOR= 0.38 OVERTIME FACTOR= 0.66 CHANGEABLE MESSAGE SIGN [ CMSN ] Model Code Rate Generator GENT $12.33 Generator w/ cell remote GEN2 $13.42 Solar SOLI $8.43 Solar w/ cell remote SOL2 $9.52 FLASHING ARROW SIGN [ FLAS ] Including supplies, replacements and servicing. Model Code Rate Roof mounted RM $0.74 Trailer mounted TM $2.96 TRAFFIC CONTROL & SAFETY DEVICES [ TRAFC ) (DAILY RATES) DELAY FACTOR= 0.73 OVERTIME FACTOR= 1.00 Includes supplies and servicing. The following allowance is entered on the extra work by using days instead of hours worked. Crash cushion barrels and K -rail sections are now listed with Non -Operated items[NONOP]. (1) BARRICADES [ 1BAR ] (A) 750 mm to 900 mm high & 600 mm to 900 mm wide (30 to 36 inches high & 24 to 36 inches wide) (B) 1500 mrn high by 1200 mm wide min. (60" high by 48" wide min.) Model Code Rate each with flasher Al $0.37 each without flasher A2 $0.19 each B3 $0.84 31 (2) TRAFFIC CONES [ 2TC ] Lost or destroyed are no longer paid on invoice. Code Model Code Rate 450 mm (18") high, per 100 A100 $6.73 700 mm (28") high, per 100 B100 $11.76 700 mm (28") high w/ refl sleeve, per 100 D100 $18.04 1,050 mm (42") high w/ refl sleeve, per 100 E100 $30.02 (3) PORTABLE DELINEATOR [ 3DEL ] Lost or destroyed are no longer paid on invoice. Model Code Rate per 100 100 $19.25 (4) ILLUMINATED SIGNS [ 4SIG ] Model Code Rate incl 900 mm x900 mm (3'x3') sign & 12V $4.61 batteries (5) FLASHING BEACON [ 5BEA ] Model Code Rate portable 12 volt 12V $4.70 (6) FLAG/SIGN STAND [ 6FSS ] Model Code Rate incl sign, stand & 3 flags EACH $2.14 (7) DELINEATOR DRUM [ 7DDR ] Model Code Rate Del. drum w/ base per 100 100 $47.26 TRAILERS, EQUIPMENT, LOW BED [ TRAIL ] DELAY FACTOR= 0.45 OVERTIME FACTOR= 0.60 Includes all attachments and accessories related to hauling. The rates cover drop deck type with and without folding/removable gooseneck or oscillating trunion. Pilot vehicles are extra. Listed in accordance with number of axles and tires per axle. Includes jeeps, booster axles, and dollies. All loads shall be hauled legally or within Caltrans Permit Policy. LOW BED A [ LB -A ] 2 axle Model Code Rate 4 Tires per axle 100 $12.50 8 Tires per axle 200 $15.76 LOW BED B [ LB -B ] 3 axle Model Code Rate 4 Tires per axle 300 $16.74 8 Tires per axle 400 $19.39 LOW BED C [ LB -C ] 4 axle Model Code Rate 4 Tires per axle 500 $26.95 8 Tires per axle 600 $33.47 Gene Cortright Director of Public Works City of Fairfield -Cities Chairman Jeff Armstrong Laborers Union - Labor Vice -Chairman Linda Clifford Chief Financial Officer C.C. Myers, Inc. Secretary Eddie Bernacchi NECA, Politico Group Subcontractors Jay Hansen Legislative Director State Building & Construction Trades Council of California Labor Robert Byrd Auditor -Controller County of Riverside - Counties Guiselle Carreon Director of Purchasing District - Schools William Dildine Trojan Electric, Inc. Subcontractors David Gomez Director Palmdale Water District District — Special Districts David A. M-Cosker Chairman of the Board Independent Construction Co. General Contractors Alec Pringle Director of Engineering Services Department County of Ventura -Counties Lisa Miller -Strunk Contractors State License Board Jane Chambers City Manager 300 Seminary Avenue Ukiah, CA 95842 Dear Ms. Chambers: March 2, 2009 ill The Construction Industry Force Account Council filed a request with the California Uniform Construction Cost Accounting Commission (the Commission) for an account review of your city's Municipal Golf Course Seasonal Tributary Project, also referenced as the Golf Course Creek Enhancement Project. It was their belief that this construction project exceeded the $30,000 force account limit pursuant to Public Construction Code 22042 (b). After investigation and deliberation, the Commission has determined that the City of Ukiah's Municipal Golf Course Seasonal Tributary Project violated the Act's $30,000 force account limit. This is the second violation by the City of Ukiah within a ten-year period. Based on your comments made in the Commission's February 18, 2009 meeting, it is the Commission's understanding that the City of Ukiah is rectifying the issue by implementing new policies regarding projects that are performed by their own work forces. Nevertheless, as being signatory to the Act, and pursuant to Public Contract Code 22044, the City of Ukiah must place this item on the agenda and present the Commission's findings to its governing body within 30 days of receipt of this letter. Along with this letter, you will find the account review report produced by the Division of Audits of the State Controller's Office that states the specific finding of the investigation. Please send a copy of your minutes, addressed to the commission, to the address found below. If you have any questions regarding this matter, please contact me at (707) 428-7493. Sin lI s e e S. Cortright Chairman State Controller's Office, Local Government Policies Section P.O. Box 942850, Sacramento, CA 94250 Phone: 916-322-9105 " Fax: 916-327-3162 March 2, 2009 Cc: Catherine A. Hilliard, CIFAC Sage Sangiacomo, City of Ukiah Commissioner Jeff Armstrong Commissioner Gene Cortright, Elected Chairman Commissioner Robert Byrd Commissioner Guiselle Carreon Commissioner Linda Clifford, Secretary Commissioner William R. Dildine Commissioner David Gomez Commissioner Jay Hansen, Vice -Chairman Commissioner David A. McCosker Commissioner Alec Pringle Commissioner Lisa Miller -Strunk State of California To From Subject: Michael Havey, Chief Division of Accounting and Reporting State Controller's Office Jeffrey V. Brownfield, Chief Division of Audits John Chiang, California State Controller Date: February 17, 2009 CALIFORNIA UNIFORM PUBLIC CONSTRUCTION COST ACCOUNTING COMMISSION REVIEW— CITY OF UKIAH, GOLF COURSE TRIBUTARY PROJECT At the request of the California Uniform Public Construction Cost Accounting Commission, the Division of Audits reviewed the records of the City of Ukiah's Golf Course Tributary Project pursuant to Public Contract Code (PCC) section 22042(b). The objective of our review of the City of Ukiah's project was to determine whether the total project costs for the Golf Course Tributary Project, did not exceed the force account limit. Our review determined that the City of Ukiah did not comply with the PCC section 22042(b) because total costs for the Golf Course Tributary Project exceeded the force account limit (see the attached schedule for details). At the exit conference on February 11, 2009, the results of our review were discussed with Jane Chambers, City Manager; Gordon Elton, Finance Director; and Leigh Halverson, Accounting Manager. Ms. Chambers stated that the City of Ukiah exceeded the force account limit because the city had incurred $1,200 in regulatory agreement payments (recorded as Permit Fees), had unanticipated labor costs of $1,345 (Chamberlain Creek crew) during the actual performance of the work, and contracted services costs for hydro seeding of $1,320. Our working papers supporting our findings are complete and available for review by your staff, if needed. Please contact Steven Mar, Chief, Local Government Audits Bureau, at (916) 324-7226 to make arrangements as warranted. RITA-1fii' 7258 Attachments: Schedule of Costs -Golf Course Tributary Project City of Ukiah's Response to Findings City of .I Scheduleof i !lf Course Tributary Project Miscellaneous Costs (Permit Fees) 1,000 200 1,200 1,000 (200) Contracted Services 1,121 224 1,345 1,121 (224) Total $ 27,553 $ 5,510 $ 33,063 $ 32,419 $ (644) PPC §22017(b)(1) states, "Cities with a population of less than 75,000 shall assume an overhead rate equal to 20 percent of the total costs of a public project, including the costs of material, equipment, and labor." (1) (2) (3) (4) (5) Cost Per SCO (With 20% Overhead Overhead Difference Cost Per Costs * Total Cost Where (Col. (4) — City 20% Per City Applicable) Col. 3)) Salaries/Benefits $ 9,370 $ 1,874 $ 11,244 $ 11,244 $ — Equipment 2,121 424 2,545 2,545 — Materials 12,841 2,568 15,409 15,409 — Hydro Seeding 1,100 220 1,320 1,100 (220) Miscellaneous Costs (Permit Fees) 1,000 200 1,200 1,000 (200) Contracted Services 1,121 224 1,345 1,121 (224) Total $ 27,553 $ 5,510 $ 33,063 $ 32,419 $ (644) PPC §22017(b)(1) states, "Cities with a population of less than 75,000 shall assume an overhead rate equal to 20 percent of the total costs of a public project, including the costs of material, equipment, and labor." Law Offices Of RAPPORT ANDMA0STON AoAssociation ofSole 11rucddoncrs 405W.Perkins Street P.O. Box 488 Ukiah, California 95482 David J.Rapport (707) 462-604$ Lester J.Marston FAX 462-4235 Scott Johnson Mary Jane Sheppard February 1O.20OB State ofCalifornia State Controller's Office Attn: Gus J.Castro 3OOCapitol Mall, Suite 41O Sacramento, CA 958 14 Re: City ofUkiah Golf Course Creek Enhancement Project Dear Mr. Castro: �� 8ent�`n��Bofthe Accmu/,/u//�Procedures Review provisions inthe Cost Accounting Manual ("Manual") provides: "The consultant [appointed to conduct a review of a complaint] will interview the public agency involved and submit as a part of the findings a complete statement of the public agency's position with naspocttmthe review being conducted." (Emphasis added-) ) I have been asked to provide this letter to assist you in including in your proposed findings a complete statement of the City's position, concerning the CIFAC gomplaint about the City's golf course creek enhancement project. |nmaking theser i tm.thoCitydoesmnt want togive the Commission the impression that itietrying toeVodolteobligations under the Cost Accounting Act. All ofthe City departments involved inperforming public p 'ectaanastrivingtoundenstandandimlp|mne their performance ofestimating projects �and tracking the actual cost ofprojects. | hope the Commission takes this into account io acting onthe C/FA[:complaint. 1. Estimate under $30,000. As recognized in CIFAC'm connp|a|nt, and aaexplained to you during your visit tothe City, the estimate for this project was under $3D.O0O. At the Commission meeting on February 4, 2009, in which I participated by telephone, several Commissioners expressed the opinion that ifthe actual cost ofaproject, as tracked by the public agency, exceeds the $30,000 force account limit bVany amount, m0matter Letter to Gus J. Castro Page 2 Subject: Ukiah Municipal Golf Course Creek Enhancement Project Date: February 10, 2009 how little, the agency has violated the force account limit and the Commission should so determine. As previously stated by the City, this position seems inherently unfair to participating agencies, because they have no choice but to proceed with a project by force account based on the estimated cost. Actual costs can only be determined after the decision to proceed by force account has been made. Numerous circumstances can arise which result in unanticipated *costs, sometimes substantial, which will result in the actual costs exceeding the estimate, no matter how conservative the estimate is, no matter what size contingency is included in the estimate. The Cost Accounting Manual adopted by the Commission doeg not appear to the City to support this interpretation by the Commission. The Manual appears to allow a project to proceed by force account based on the estimate; not actual project cost. Section ILH of the Manual provides as follows., Each cost element - personnel; materials, supplies, and subcontracts; equipment; and overhead - shall be estimated for each public project. This estimation determines what bidding criteria the public project must come under. 1. Discussion of Example I The cast of remodeling the Main Street School has been estimated in Exhibit 11-3. No standard format is required for the preparation of this estimate, but the estimate of the cost elements must be recorded to the project tracking system. An example of recording the estimate to a project ledger car6 is shown in Exhibit 11-4. The total cost of performing the remodeling is less than the $25,000 limit and can therefore be performed by force account. (Manual at p. 49. Emphasis added.) These provisions address estimating project cost and expressly state that the estimate ,determines on what basis the project may proceed. The example involves an estimate of cost for remodeling a school and specifically states that because the total cost estimate is under the force account limit, the project can therefore be performed by force account." Moreover, when the Manual addresses tracking actual cost, it states: "The accurate estimating, tracking and costing of personnel costs is imperative to ensure accurate reporting and future estimating of these costs." Letter to Gus J. Castro Page 3 Subject: Ukiah Municipal Golf Course Creek Enhancement Project Date: February 10, 2009 When read with the Manual statement that the estimate determines whether the project can proceed by force account, this statement about the purpose of tracking appears to require accurate reporting so that the information about actual cost can inform and make more accurate future estimates. Taken together, these provisions of the Manual support determining whether a project can proceed by force account based on the estimate, not the actual cost. Actual costs must be accurately tracked so that future estimates can be refined and made more accurate. An agency should not be found to have violated the force account limit, where its estimate of project cost is less than the force account limit, even if the actual cost exceeds the limit, as long as the agency accurately tracks costs and does not repeatedly exceed estimates without substantial justification. These provisions of the Manual interpret and make specific and do not appear to conflict with Public Contract Code §22032, which refers to "Public projects of twenty-five thousand dollars ($25,000) or less [or such greater amount as is approved by the Controller]. . . " Projects "Of' a stated amount could refer to projects estimated to cost that amount or the actual cost of the project. It appears within the combined rule-making authority of the Commission and the Controller to adopt the interpretation contained in the Manual. Basing the Commission's determination on whether the actual cost exceeded the limit, regardless of the amount of the estimate and regardless of the circumstances, can place an agency attempting to comply with the limits in a no-win position. For example, if an agency decided to terminate a force account project part way through, because it could see that the actual cost was going to exceed the limit, it cannot avoid violating the limit, even if it ceased all work and went out to bid and contracted to complete the project. The cost of contracting to complete would be considered a cost in determining the actual force account cost of the project. (See Manual, p. 67.) Since that cost would exceed the force account limit, the agency would have violated the force account limit. For all of these reasons, the City believes that the Commission must follow its own Manual and determine whether a project can proceed by force account based on the estimate, not the actual project cost. 2. Excludina regulatory approvals from cost, The Manual requires the cost of permits to -be included in calculating project cost as miscellaneous costs. (Section E.1.e, p. 43) This makes sense as to typical building permits which a contractor generally must include in a bid on a public project. However, in this case the City was required to obtain a certification from the North Coast Regional Water Quality Control Board (NCRWQCB") and an exemption or an agreement with the California Department of Fish and Game, because the project involved work on the banks of a creek. These approvals are normally obtained by the City as part of planning projects of this type and are never included in the scope of work for a publicly bid project. The City pays this cost before a project goes out to bid. For this reason, the City does not believe these costs should be included in the Letter to Gus J. Castro Page 4 Subject: Ukiah Municipal Golf Course Creek Enhancement Project Date: February 10, 2009 cost of the project for purposes of determining whether the project can be performed by force account or should be bid. The word "Permit" should be limited to permits normally obtained by the contractor, when the projects are bid. 3. Unanticipated labor costs. Parks department labor on this project cost close to $1 ( FOOO. When the City began performing this project, it had planned for a substantial portion of the labor to be provided by the Chamberlain Creek work crew which performs this type of work for public agencies at a daily cost of $224. However, the City finally got approval to proceed with the project on October 17. Under the terms of the Fish and Game exemption, the City was required to complete all work that could affect the creek prior to first rain or November I at the latest. Because of this time constraint, the City was forced to use its own employees rather than the Chamberlain Creek work crew. As a result, the labor costs were increased by, at least, $5,000. This was unexpected and unavoidable. The City could not halt work and wait until after the rainy season, because work had already been performed which could have caused unacceptable erosion and darnage to the creek. The City had no choice but to finish the Work before the beginning of the rainy season, using its own employees, or risk environmental damage and potential fines or other sanctions from the regulatory agencies. If the $1,000 to obtain the 401 Certification from the NCRWQCB and the exemption from Fish and Game were excluded, the actual cost of the project would have exceeded the force account limit by $1,800.1 If allowance were given for the unanticipated labor costs, the actual cost would havq been approximately $25,800. 1 The City recognizes its obligation to make accurate estimates. It is attempting to track actual costs accurately and to use that information to refine future cost estimates so that the estimate and the actual costs are the same and below the force account limit. I Very "lyours, Da Wi. �Ra pop pDp o trlt�, Ukiah City Attorney 'S33,042.77 - $1,200 ($1,000 +$200 ($1000 x 20%). w►. • . ITEM PTR MEETING DATE. city aJ-,5k:iafi AGENDA SUMMARY REPORT • Background: 11a March 18, 2009 In the fall of 2007, the Ukiah City Council and the Ukiah Valley Fire District Board of Directors formally established the Fire Services Integration Ad Hoc Committee to analyze and make recommendations regarding fire protection in the Greater Ukiah Area. From September of 2007 until June of 2008, both UFD Interim Fire Chiefs Clarabut and Ritter, and UVFD Chief Grebil, met monthly with representatives from the City Council, UVFD Board, Cal -Fire, Career Firefighters, Volunteer Firefighters, and Ukiah community members. Through the efforts of the Ad Hoc committee, a draft Automatic Aid Agreement and Operational Memorandum of Understanding between the District and the City was created. These draft documents were intended to replace an agreement created in 1997, and clarify a number of concerns the District and City had in providing fire protection into the future. The Ad Hoc committee voted to stop further meetings and have the District Fire Chief and City Fire Chief continue to meet to analyze and develop a new Automatic Aid Agreement and Operational Memorandum of Understanding which would augment fire protection services to the community. Discussion: Over the fall and winter of 2008, the UVFD and UFD Fire Chiefs met monthly to work on the Automatic Aid Agreement and the Operational Memorandum of Understanding. In these meetings, a focus was placed on identifying and resolving concerns each agency had in strengthening our working relationship, and finding ways to share resources, specialty equipment, fire protection apparatus, and specific job functions like fire prevention and apparatus maintenance. The result of these monthly Chiefs' meetings between the District and City was the creation of a draft Automatic Aid Agreement and Operational Memorandum of Understanding which was then submitted to fire employees from both agencies for comment. At the conclusion of the comment period, staff comments were incorporated into the documents by the Chiefs, which created the final draft of the documents for the Council and Board of Directors' consideration. Continued on Page 2 Recommended Action(s): Authorize the Director of Public Safety to enter into a new Auto Aid Agreement and MOU with the Ukiah Valley Fire District. Alternative Council Option(s): NIA Citizens advised: Requested by: Chris Dewey, Director of Public Safety Prepared by: Chris Dewey, Director of Public Safety Coordinated with: Jane Chambers, City Manager Attachments: Auto Aid Agreement and Operational MOU with Map of Proposed Area Approved: Chambers, City Manager Subject: Consideration of a new agreement for Automatic Fire Aid and Operational Memorandum of Understanding between the Ukiah Valle Fire District and the City of Ukiah Meeting Date: March 18t , 2009 Page 2 of 2 The Ukiah Valley Fire District Board of Directors is scheduled to consider this item at their March 11th, 2009 Board Meeting and their comments will be verbally reported to Council during the meeting on March 18th 2009. This proposed agreement and MOU will augment fire protection services for the greater Ukiah community. In addition, the agreement and MOU will allow the Chiefs from both agencies to control costs of future purchases for fire protection vehicles and equipment by sharing resources between jurisdictions and allow both departments to explore ways to decrease duplication of effort by sharing our current human resources between the agencies for Fire Prevention, Plan Check Services, Maintenance of Equipment and other areas. Recommendations: Staff recommends that the City Council authorize the Director of Public Safety to enter into a new Auto Aid Agreement and Operational Memorandum of Understanding with the Ukiah Valley Fire District. Fiscal Impact: New Appropriation Not Applicable Budget Amendment Required F7 Budgeted FY 08/091-1 FINAL DRAFT 3/3/2009 Ukiah Valley Fire District And City of Ukiah THIS AGREEMENT is made and entered into this day of , 2009, by and between Ukiah Valley Fire District, a public entity, hereinafter referred to as "DISTRICT", and the City of Ukiah, a municipal corporation, hereinafter referred to as "CITY". 1 WHEREAS, DISTRICT and CITY both staff and maintain fire stations for the safety and protection of the lives and property within their respective jurisdictions; and WHEREAS, DISTRICT and CITY, in order to provide the maximum fire protection to its residents, desire to enter into an agreement whereby each entity may render automatic aid to the other for first alarm responses; and WHEREAS, each agency has the ability to provide automatic aid when not committed to another emergency; NOW, THEREFORE, pursuant to the authority granted by the California Health and Safety Code §§13050 and 13863 and other authorizations, and for and in consideration of the mutual promises, covenants and conditions herein contained, the parties hereto agree as follows: 1. DEFINITIONS: For the purposes of this Agreement, the following terms shall have those meanings as set forth herein: a.) "Automatic Aid" as used in this Agreement shall mean assistance dispatched automatically for first -alarm responses on the initial alarm. This Agreement also allows for the exchange of other fire protection services. 2. AUTOMATIC AID AREA: DISTRICT and CITY agree to provide automatic aid to each other within the following geographical areas: DISTRICT will respond in all incorporated areas of the CITY. CITY will respond within the DISTRICT area known as Local Responsibility Area (LRA). Exhibit A map attached hereto and incorporated herein by this reference. 1 FINAL DRAFT 3/3/2009 3. RESPONSE REQUIREMENTS: Upon receipt of an emergency call, DISTRICT and CITY, if available, shall respond with emergency apparatus and personnel as specified in the attached Operational Memorandum of Understanding. When responding, each responding agency shall ensure that: a.) Personal protective clothing and equipment shall be used by its participating firefighters on the scene of a fire or emergency incident. b.) The command and tactical frequency assigned by the Emergency Command Center shall be utilized on an incident. c.) The unit first arriving at the scene shall assume command of the incident until relieved by an officer of the agency having jurisdiction. The first arriving engine company or chief officer from the jurisdictional agency will either assume command or decide to make no change at the time of arrival. Personnel shall make face-to-face transfers of command whenever practical. Command cannot be passed/transferred to an officer not at the scene. In all cases, positive contact will be made with the previous Incident Commander before assuming command. When accomplished, the change of command shall be announced over the incident's tactical radio frequency and then announced to the jurisdictional agency's dispatch center. d.) The agency first arriving may cancel any further response to the incident if that agency is capable of handling the incident and the responsible jurisdiction is so notified. 4. HOLD HARMLESS: The DISTRICT shall indemnify and defend the CITY against any claim or liability arising out of the automatic aid response by the DISTRICT, and its officers and employees if the claim or liability is based on the negligent, grossly negligent or wrongful act or omission of the DISTRICT and seeks to recover money damages for property damage or personal injury. The CITY shall indemnify and defend the DISTRICT against any claim or liability arising out of the automatic aid response by the CITY and its officers and employees, if the claim or liability is based on the negligent, grossly negligent or wrongful act or omission of the CITY and seeks to recover money damages for property damage or personal injury. These mutual obligations include all costs to defend against a covered claim, including litigation expenses and the fees of attorneys, investigators, experts and consultants. Each party shall provide the other party with satisfactory evidence that the other party has been named as an additional insured or covered party under indemnifying party's public liability insurance, if the indemnifying party is insured 1A FINAL DRAFT 3/3/2009 by an insurance company, or memorandum of coverage, if the indemnifying party is insured by a joint powers agency. 5. DURATION - TERMINATION: This Agreement shall remain in full force and effect indefinitely unless terminated by either of the parties provided the other party is given thirty (30) days notice in writing of such termination. 6. CITY ANNEXATIONS: Both parties acknowledge the financial impact to the District if the City initiates annexation with detachment from the District. In order to maintain a cooperative working relationship, the City agrees to meet and confer with the District regarding the financial impacts from annexation with detachment from the District. 7. OPERATIONAL MEMORANDUM OF UNDERSTANDING: Operational issues and procedures resulting from this Agreement shall be addressed in a separate Operational Memorandum of Understanding which shall be developed and agreed to by the DISTRICT and CITY. The Fire Chief of the DISTRICT and the Director of Public Safety of the CITY are authorized to sign and revise the Operational Memorandum of Understanding as long as it does not conflict with any provision of this Agreement. 8. NOTICES: All written notices or correspondence provided for within this Agreement shall be made by personal delivery or by mailing, first class postage prepaid to: DISTRICT: UKIAH VALLEY FIRE DISTRICT Attn: Fire Chief 1500 South State Street Ukiah, CA 95482 CITY: CITY OF UKIAH Attn: Director of Public Safety 300 Seminary Avenue Ukiah, CA 95482 Notices given by personal delivery shall be deemed given when received. Notices given by mail shall be deemed given 48 hours after deposit in the United States Mail. Either party may give written notice of an address change and thereafter all notices shall be given to that address. 9. INTEGRATION: This Agreement, including the Operational Memorandum of Understanding, contains the entire agreement between the CITY and the DISTRICT concerning the provision of Automatic Aid to each other and supersedes any previous statements and agreements. This Agreement may only be amended by a written agreement approved by the CITY and the DISTRICT and signed by their authorized representatives. FINAL DRAFT 3/3/2009 10. SEVERABILITY: If any term of this Agreement is held invalid by a court of competent jurisdiction, the remainder of this Agreement shall remain in effect. 11. MULTIPLE ORIGINALS; COUNTERPARTS: This Agreement may be executed in counterparts, each of which shall be deemed to be an original. IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed the day and year first written above. DISTRICT DAN GREBIL Fire Chief CITY CHRIS DEWEY Director of Public Safety LI FINAL DRAFT 3/3/2009 rzlmmm rA FINAL DRAFT 3/3/2009 This Operational Memorandum of Understanding is between the Ukiah Valley Fire District (DISTRICT), and the City of Ukiah Fire Department (CITY). Both the District Board of Directors and City Council have approved the concept of Automatic Aid. As such, the District Fire Chief and City Public Safety Director have signed an AGREEMENT providing for the Automatic Aid. This Operational Memorandum will provide personnel of both agencies a means for executing the AGREEMENT. • This Operational Memorandum will supersede all other response agreements or guidelines between the DISTRICT and CITY. Nothing in this Operational Memorandum shall change local, state or national mutual aid procedures. 1:J ZION:01:4 Bill ZJI A. Types of Emergency Calls Covered This AGREEMENT applies to all first alarm responses. The AGREEMENT also applies to responses where jurisdiction cannot be readily identified such as Highway 101 incidents North of Perkins Street and South of Talmage Road. B. Planned Response Areas The DISTRICT and CITY have agreed on the planned response area covered by this AGREEMENT. The response areas are defined on the attached map. C. Fire Engine Response Each agency agrees, upon dispatch, to send one engine with a minimum of two personnel to all first alarm responses automatically into the adjacent agency's area. FINAL DRAFT 3/3/2009 D. Ladder Truck Response CITY agrees to send their ladder truck, in lieu of the one engine specified in paragraph C., with a minimum of two personnel and a preferred staffing of three personnel if possible to all DISTRICT first alarm responses involving commercial or industrial occupancies. E. Wildland Engine Response DISTRICT agrees to send one of their wildland engines with a minimum of two personnel, in lieu of the one engine specified in paragraph C., to all CITY first alarm responses within the West Hills Wildland Urban Interface (WUI) area. F. Incident Support Unit Response DISTRICT agrees to send their incident support unit to all DISTRICT and CITY first alarm responses involving an Immediately Dangerous to Life and Health (IDLH) atmosphere to provide incident breathing air re -fill and firefighter re -habilitation support. G. Volunteer and Off -Duty Response All first alarm responses include the dispatching of volunteers and the call back of off-duty career personnel. H. Emergencies While Roaming If apparatus is traveling outside its normal response area, it is authorized to respond to any new emergency, in the other jurisdiction, if it is close enough to the incident to reasonably expect to arrive first. After the initial dispatch, the roaming engine shall report its location and advise the jurisdictional agency dispatch center that it is responding to that call. The apparatus shall then advise its own dispatch center that it is now committed to a call. If the apparatus is close but unsure if it would be first due, it should contact the jurisdictional agency, give its location, and ask if it would like the engine to respond. If an engine comes upon a new emergency, the officer will contact the appropriate dispatch center on the correct frequency and announce "emergency traffic". Example: Station 36, Ukiah Valley Engine 6460 emergency traffic," (wait for acknowledgement by Station 36), "at scene of a vehicle accident at the intersection of X and Y". Give a brief report on conditions. IN FINAL DRAFT 3/3/2009 The agency having jurisdiction may choose to continue the response. Additional Resources Any additional fire and rescue resources requested by either agency shall be requested in accordance with established mutual aid protocols. The agency having jurisdiction remains responsible for ordering EMS, law enforcement, or other resources such as utilities, Red Cross, etc. J. Radio Communications Agencies agree to comply with the Mendocino County Fire Services Radio Communications Plan (latest edition) as adopted by the Mendocino County Fire Chiefs Association. This compliance will insure common mobile and portable radio frequency capability. Agencies agree to have their dispatch center automatically request the assisting agency as required by the Insurance Service Office (ISO) Fire Suppression Rating Schedule (FSRS). Chief Officers and Company Officers are responsible for ensuring the appropriate dispatch is made. K. ICS The Incident Command System (ICS) will be used on every incident. L. Incident Command The first arriving engine company or chief officer will be the Incident Commander regardless of jurisdiction. The first arriving engine company or chief officer from the jurisdictional agency will either assume command or decide to make no change at the time of arrival. Personnel shall make face-to-face transfers of command whenever practical. Command cannot be passed/transferred to an officer not at the scene. In all cases, positive contact will be made with the previous Incident Commander before assuming command. When accomplished, the change of command shall be announced over the incident's tactical radio frequency and then announced to the jurisdictional agency's dispatch center. FINAL DRAFT 3/3/2009 The DISTRICT or CITY may chose to send an Agency Representative to incidents where their resources are being utilized. The Agency Representative shall promptly report to the Incident Commander. If requested and accepted, the Agency Representative may be utilized on the incident in other command capacities. Neither DISTRICT nor CITY will dispatch extra ICS positions to an incident of the other agency, unless they are ordered, there is reasonable question as to jurisdiction, or Unified Command is utilized. Spotting priority at a structure fire shall first go to ladder trucks, then to Type 1 and Type 2 engines in that order. Type 3 and Type 4 engines operated by DISTRICT or CITY shall normally not take priority spotting locations. The exception is when access considerations necessitate the use of Type 3 or Type 4 engines. M. Preplans, Target Hazards, Locks, and Special Maps Preplans for target hazards will be exchanged between departments and each agency will be invited on preplan tours conducted by the other. Each agency will provide appropriate keys and lock or gate codes to the other for covered first due areas. Each agency will provide information to each other regarding access restrictions, special hazards, etc. N. Training At a minimum, DISTRICT and CITY will conduct interdepartmental training as specified by the ISO FSRS. O. Apparatus and Equipment All Type 1 engine and ladder companies shall meet the ISO FSRS minimum equipment compliment. Both agencies shall include comprehensive equipment familiarization in their interdepartmental training. P. Personnel Protective Equipment (PPE) All personnel will wear appropriate PPE for the type of call. 9 FINAL DRAFT 3/3/2009 Q. Incident/Fire Reporting Each agency will process its own required reports. If an engine company from the agency not having jurisdiction is the only resource to arrive at the scene, that officer will promptly provide the required report information to the proper jurisdictional agency. Incident information gathered after 2200 hours will normally be provided to the other agency between 0630 and 0700 the next morning. Each agency will provide forms to the other which will assist in gathering the necessary information. R. Mutual Aid Any additional resources beyond the automatic aid resources will be considered Mutual Aid and must be requested as such by the Incident Commander. S. Release of Resources The jurisdictional agency will normally release resources of the other agency when the incident is contained and sufficient jurisdictional agency resources are present to complete control. This applies to apparatus and personnel. On occasion, a non - jurisdictional resource may be kept at scene longer if it is heavily committed in terms of personnel, equipment or placement. T. Station Coverage Each agency will provide for its own station coverage. U. US 101 Freeway Responses Both agencies will respond to freeway incidents regardless of jurisdiction where jurisdiction cannot be readily identified such as incidents North of Perkins Street and South of Talmage Road. Because of the dangers inherent with responses to incidents occurring on the Highway 101 freeway, each agency shall restrict their response. In Highway 101 responses, both agencies will rely first on the auto -aid agreement for personnel, and instruct volunteer and off-duty personnel to either stage off the freeway near the incident until further instructions are received by the Incident Commander, or respond directly to their appropriate station for duty assignments. 10 FINAL DRAFT 3/3/2009 V. Exchange of Other Fire Protection Services This AGREEMENT allows the DISTRICT Fire Chief and CITY Public Safety Director to mutually agree to exchange other fire protection services including but not limited to: Personnel and Equipment, Plan Check and Inspection Services, Apparatus and Equipment Maintenance, CalFire Amador Contract, etc. Some of the Other Fire Protection Services mutually agreed to may require one party to compensate the other party on a reimbursed cost recovery basis. W Neither party to the AGREEMENT shall be required to deplete its own fire protection resources beyond their ability to protect their primary jurisdiction. X Neither party to this AGREEMENT shall be required to pay any compensation to the other party to this AGREEMENT for agreed upon auto aid resources other than those mutually agreed to other fire protection services exchanged in paragraph S. Y Fire Prevention Services: Both the CITY and the DISTRICT will continue to adopt the latest version of the California Fire Code with like amendments. Z Ukiah Municipal Airport Responses: Aircraft Emergencies and Fires reported at the Airport shall be dispatched as a First Alarm, triggering a response from both the DISTRICT and CITY. Maps showing the areas covered by the AGREEMENT will be maintained and -kept current by each agency. Response boundaries may be changed from time to time, based on changing conditions, by mutual agreement of the DISTRICT Fire Chief and CITY Public Safety Director. If there is not mutual agreement, either the Fire Chief or Public Safety Director may request a review and decision from both governing bodies regarding the change of response areas. 7. MEETINGS The District Fire Chief and City Public Safety Director, or their designees, shall meet at least monthly during the first year of this AGREEMENT and at least quarterly thereafter to discuss issues arising from this AGREEMENT. Additional meetings may be called at the request of either DISTRICT or CITY. II FINAL DRAFT 3/3/2009 This Operational Memorandum has been approved and authorized by the following and shall take effect when signed by both parties. For DISTRICT: Dan Grebil Fire Chief Date 12 For CITY: Chris Dewey Director of Public Safety Date 01 Lau n L Pit t rivi Itgt%-aB a 11b MEETING DATE: March 18, 2009 City qJ' `Z!k-iah SUBJECT: DISCUSSION AND POSSIBLE ACTION ACCEPTING PROPOSALS FOR WATER AND WASTEWATER RATE STUDIES AND CONSIDERATION OF BUDGET AMENDMENTS FOR THE WATER AND SEWER FUNDS Background: In 2005, the City adopted multi-year rate schedules for both water and wastewater customers. The rates were established as part of the capital improvement and expansion plans for both utilities. The final water rate adjustment was implemented in November 2008. The final wastewater rate adjustment will be implemented in July 2009. During budget development for fiscal year 2008/2009, it was identified that revenue was not meeting expectations and rates would need additional review. One of the requirements, instituted as part of the sale of the construction bonds, is generation of net revenue (basically revenue net of operating expenses and debt payments) of 25% of the amount of the debt annual payment. This is a contractual agreement between the governing body and the bond owners to entice them to lend money to the City. This is a standard commitment when governments sell bonds. Discussion: Staff developed a request for proposals (RFP) for water and wastewater rate study services. This RFP was distributed in February and responses were due on March 6th. The RFP identified seven study objectives: 1. Propose Water and Wastewater rates that are fair and objective and reflect the cost of the services. 2. Propose Water and Wastewater rates that encourage water conservation. 3. Review and update miscellaneous fees. 4. Recommend a prudent reserve policy for operations, capital replacement and emergencies. 5. Develop Water and Wastewater connection "buy -in" fees for future new service hookups. 6. Develop a model for new sewer hookup demands over the next 15 year period. It is anticipated the model will be based on projected future economic conditions. Continued on Page 2 Recommended Action(s): 1) Discuss report and direct staff to add award of contracts for water and wastewater rate study services and the related budget amendments to the planned joint meeting with the Ukiah Valley Sanitation District. Alternative Council Option(s): 1) Authorize the City Manager to enter into a professional service agreement with HF&H Consultants, LLC to perform a water and wastewater rate study and approve budget amendments in the Water fund in the amount of $34,151.00 and the amount of $33.474.00 in the Wastewater Fund contingent on budget amendment approval from the UVSD; OR 2) Provide alternate direction to staff. Citizens advised: Ukiah Valley Sanitation District General Manager Requested by: Gordon Elton, Director of Finance Prepared by: Gordon Elton, Director of Finance Coordinated with: Public Works Director & Deputy Director; Jane Chambers, City Manager Attachments: RFP response from HF&H Consultants, LLC and FCS Group Approved: Chambers, City Manager Subject: Water and Wastewater Rate Study Meeting Date: March 4th, 2009 Page 2 of 3 7. Develop a connection fee schedule adequate to fund the portion of the annual debt payment allocated to capacity expansion. The RFP also identified the following services to be provided by the consultant: 1) TASK 1 — WATER RATES a) Conduct a detailed review of the existing Water rates and status of the Water Funds, and develop a general familiarity with the City of Ukiah's billing system. b) Meet or confer with staff as needed and attend one meeting (evening) with the City Council to present the interim status of the water study and obtain their input. c) Attend the separate public hearings (evening) where the Water rates are considered for adoption. d) Conduct analyses as required to address the scope of work. e) Preliminary Report: (i) Prepare a preliminary study report and tentative rate structures. (ii) Submit 15 copies. (iii) Present preliminary report and tentative rate structures to the City Council. f) Final Report (i) Incorporate changes pursuant to comments received at the first presentation. (ii) Submit 15 copies, plus one reproducible copy. (iii) Provide a disk with report in MS Word format, with spreadsheets in Excel format. (iv) Present the final report and recommended rate structures to the City Council and members of the public at a regular, or special, Council meeting. g) Develop the public notification required for compliance with Proposition 218. h) Supply a time schedule for developing the preliminary and final reports. The final report shall be delivered to the City sixty (60) days after Council award. i) Provide an easy-to-use electronic rate model in MS Excel for the City of Ukiah to use in future rate setting. j) Consultant must comply with the City requirements for insurance, business license, and any other standard requirements. 2) TASK 2 — WASTEWATER RATES a) Conduct a detailed review of the existing Wastewater rates and status of the Wastewater Funds, and develop a general familiarity with the City of Ukiah's billing system. b) Meet or confer with staff as needed and attend one meeting (evening) with the City Council and the District's Board at a joint working session to present the interim status of the wastewater study and obtain their input. c) Attend the separate public hearings (evening) where the Wastewater rates are considered for adoption. d) Conduct analyses as required to address the scope of work. e) Preliminary Report: (i) Prepare a preliminary study report and tentative rate structures. (ii) Submit 15 copies. (iii) Present preliminary report and tentative rate structures to the City Council and to the Ukiah Valley Sanitation District Board at a Council and Board Work Sessions. f) Final Report (i) Incorporate changes pursuant to comments received at the first presentation. (ii) Submit 15 copies, plus one reproducible copy. (iii) Provide a disk with report in MS Word format, with spreadsheets in Excel format. (iv) Present the final report and recommended rate structures to the City Council, the Ukiah Valley Sanitation District, and members of the public at a regular, or special, Council and Board meetings. Subject: Water and Wastewater Rate Study Meeting Date: March 4th, 2009 Page 3 of 3 g) Develop the public notification required for compliance with Proposition 218. h) Supply a time schedule for developing the preliminary and final reports. The final report shall be delivered to the City sixty (60) days after Council award. i) Provide an easy-to-use electronic rate model in MS Excel for the City of Ukiah to use in future rate setting. j) Consultant must comply with the City requirements for insurance, business license, and any other standard requirements. Responses were received from seven interested parties. A review committee consisting of the Director of Finance, Public Works Director/City Engineer, Deputy Public Works Director for Water and Wastewater, and the UVSD General Manager was established. Committee members were asked to independently review the proposals and rank them. The UVSD General Manager was unable to review the proposals by the time this report was prepared, but is engaged in his review of the proposals and will be making his recommendation for award in time for award consideration at the joint UVSD/City of Ukiah board meeting scheduled for March 26, 2009. Two firms, HF&H Consultants, LLC and FCS Group, were selected as the top two by the city reviewers. Consistent with personal service contracting procedures, qualifications were evaluated without consideration of the costs of the proposed services. Once the top two proposals were identified and the ranking was established, based on the review of the proposals, the cost proposals were opened. The costs for the combined water and wastewater rate studies are $67,625 and $71,225. If additional meetings are required, beyond the four that are included in the proposal, additional costs will be incurred. A very aggressive completion schedule was adopted — 60 days — with the idea that the results will be implemented into the fiscal year 2009/2010 budget. Since the proposition 218 procedures must be followed before any rate changes can be implemented, the public hearing to consider formal opposition to any proposed rate changes is unlikely to be scheduled before July. The final budget proposals, developed in June may include the anticipated effects of any proposed rate changes. Fiscal Impact: Interested parties were requested to propose fees for the services separately for each utility, as if they were awarded separately or at different times. It was the intent of staff to have both water and wastewater rates reviewed concurrently to maximize the effectiveness of staff interfacing with the consultants as well as the consultants' time. The proposal for providing concurrent rate studies is significantly less costly that the price of two separate studies. The $67,625 fee for the combined study is $86,680 (a 28% increase) if the work is performed as two separate processes. The breakdown of the costs between water and wastewater is 50.5% for water and 49.5% for wastewater. This ratio of costs is recommended for the distribution of the fee for the combined study. Funds for these services were not included in the budget for fiscal year 2008/2009. Therefore a budget amendment must be adopted as part of the approval of a contract for services. Additionally, the agreement between the City and the Ukiah Valley Sanitation District (UVSD) requires budget approval of significant budget amendments; and, since the next joint meeting with the UVSD is pending for later in March, staff recommends award of a contract for water and wastewater rate study and the related budget amendments be place on the joint meeting agenda to be held later in March. Budgeted FY 08/09 ® New Appropriation Not Applicable ® Budget Amendment Required Amount Budgeted Source of Funds (title and #) Account Number Addtl. Appropriation Requested $ -0- 612.260.000 Fund Balance 612.3505.250.000 $ 33,474 $ -0- 820.260.000 Fund Balance 820.3901.250.000 34,151 Total additional appropriation 67,625 2175 N. California Boulevard, Suite 990 Walnut Creek, California 94596 Telephone: 925/977-6950 Fax: 925/977-6955 wznzo.hJh-cottsttl tants. cont March 5, 2009 Purchasing Department Attn: Mary Horger City of Ukiah 300 Seminary Avenue Ukiah, CA 95482 Advisory Services to Municipal Management Subject: Water and Wastewater Rate Study Technical Proposal Dear Ms. Horger: Robert D. Hilton, CMC John W. Farnkopf, PE Laith B. Ezzet, CMC Richard J. Simonson, CMC Marva M. Sheehan, CPA HF&H Consultants, LLC (HF&H) is pleased to submit this proposal to the City of Ukiah's Re- quest for Proposal for professional services to conduct Water and Wastewater Rate Study. We have submitted a separate Fee Proposal that is integral with this techrtical proposal. With a staff of 22 professionals, we are one of the largest, if not the Iargest, ratemaking firms on the West Coast. We provide financial, economic, and general management consulting ser- vices to public officials in the following areas: rate -setting, cost -of -service studies, financial planning and budgeting, resource management, public policy development, litigation support, and negotiations. Unlike firms that routinely delegate critical tasks to junior staff, our senior employees are involved throughout our clients' projects. All communications regarding our proposal can be addressed to: .Joluz W. Farnkopf, P.E. Senior Vice President HF&H Consultants, LLC 2175 North California BIvd, Suite 990 Walnut Creek, CA 94596 925-977-6953 e-mail: jfarnkopf@lflz-consultants.com We look forward to the opportunity of providing our expertise to the City of Ukiah. Very truly yours, HF&H CONSULTANTS, LLC J1 W. Farnkol '.E. S,Vnmi*S nior Vice President CITY OF UKIAH PURCHASING DEPARTMENT 300 SEMINARY AVENUE UKIAH, CA 95482 I W 1To1H&TM.,i# I March 6, 2009 �F H HF&H CONSULTANTS, LLC 2175 North California Blvd., Suite 990 Walnut Creek, CA 94596 Tel: (925) 977-6953 Fax: (925) 977-6955 Cihf of Llkiah Proposal Water and Wastezoater Rate Study Table of Contents 1. APPROACH TO PROJECT.................................................................................................................................1 GeneralApproach.............................................................................................................................................1 Approach For Water Rates and Fees..............................................................................................................4 WaterRates.................................................................................................................................................4 WaterConnection Fees..............................................................................................................................4 Approach For WasteWater Rates and Fees....................................................................................................4 WastewaterRates.......................................................................................................................................4 Wastewater Connection Fees....................................................................................................................5 2. FIRM EXPERIENCE.............................................................................................................................................5 ClientSatisfaction..............................................................................................................................................5 3. STAFF QUALIFICATIONS................................................................................................................................7 John Farnkopf, Project Director.......................................................................................................................7 Dan Bishop, Senior Associate, Project Manager/Analyst...........................................................................7 Edmund Jones, Senior Associate, Principal Analyst....................................................................................8 4. CLIENT REFERENCES........................................................................................................................................8 City of Pleasanton — Water Rate Consulting Services...........................................................................8 Placer County Water Agency Retail Rate Restructuring ....................................9 City of Belmont — Sewer and Stormwater Rates....................................................................................9 City of Lincoln —Water and Sewer Rate Studies....................................................................................9 City of Modesto Water Rate Review.......................................................................................................9 5. SCHEDULE............................................................................................................................................................9 6. EXCEPTIONS.................................................................................................................................................10 APPENDICES A. Statement of Qualifications B. Sample Rate Study HF&H Consultants, LLC i March 6, 2009 This Page Intentionally Left Blank Cita/ of L17dah Water mzd Wastewater Rate Stttdy Proposal C"01 No0.11MR iraW&Y.Tii�i HF&H always starts a project with a Kick-off meeting, which should include key staff from the City, interested Council members and Board members. The purpose of the meeting is to deter- mine and clarify the goals that the City wishes to achieve, bring out all important issues to be considered, define the roles of the consultant and staff, gather data, and establish lines of com- munications. Through this exchange, we will also be able to determine current data availability and billing system capabilities. Our primary goal for the meeting is to fully define project pa- rameters so that both staff and consultants can be most efficient in use of their time and effort. The first steps involve data collection and analysis, assessment of current rates and fees, and assessment of the current financial situation. Included at this stage is beginning development of the ten-year financial planning/rate model. HF&H will work with the City to determine the assLunptions to be used throughout the analysis and fully identify these assumptions upfront in the model, where they can be interactively modified to determine impacts and sensitivities. The model for each utility will include: ® Determination of revenue requirements for each of the ten years, starting with the cur- rent budget • Cost of Sei vice Analysis, to allocate costs to appropriate customers • Determination of the rates necessary to meet the revenue requirements, including details of: o Other sources of revenue other than rates o Operating & Maintenance costs o Customer costs o Capital spending requirements o Debt Service and coverage ratios o Reserve levels, including recommendations for appropriate target balances and additional reserve accounts, if necessary (this would likely include providing far asset replacement) o Account growth and consumption projections o Capital planning impacts on rates o Comparison to other area agencies The models, when fully developed, will become an interactive tool that enables the City to con- duct a variety of analyses, including: determination of future rate modifications that reflect the most up-to-date cost informa- tion • impacts from conservation and drought induced consumption/ flow reductions ® need for capital funding, whether through revenue funding or debt issuance ® impacts on reserve balances and debt coverage requirements HF&H's approach to model creation emphasizes user friendliness. We do not believe in creat- ing a "black box" in which model workings cannot be seen. We work with staff throughout the HF&H Comilltaiits, LLC 1 March b, 2009 Cihj of Lilciali Writer and Wastewater Rate Study Proposal process of model development to ensure that there is an understanding of all aspects of the model. As a result of interaction with staff during model development, we have found that lit- tle, if any, additional training is necessary on model usage. Figures 1 and 2 below portray development of the financial planning/rate model. H 1. Financial PlanCustomer Year One Year Two Charactedstirs Multi -Year Expenses Revenues Expenses Revenues Accounts Dwelling Units Revenue Requirement Reserves surplusl Deficit Reserves Surplusl Deficit Flow Projections Flow Based Charges $/hcf i $/hcf $/hcf $/hcf ll. Rate Analysis Customer Classes A. Cost of Service Total t. R corn. Ind. ;ns Allocations Typical Bill Comparison Bill Comparison Preferred Rates $ $ $ $ D. Comparison With Other Agencies Neighbor A $ $ $ $ EDU — Equivalent Dwelling Unit Neighbor B $ $ $ $ EMU — Equivalent Meter Unit hcf — hundred cubic feet HF&H Consultants, LLC 2 March G, 2009 RatesstE SIEDll Sr) EDU ( stEDU B. Rate Calculations Fixed Charges or EMU arEMU or EMU or EMU Flow Based Charges $/hcf i $/hcf $/hcf $/hcf Typical Bill Comparison C. Comparison Current Structure $ $ $ $ of Alternatives $ $ $ $ Alternative 1 Alternative 2 $ $ $ $ Bill Comparison Preferred Rates $ $ $ $ D. Comparison With Other Agencies Neighbor A $ $ $ $ EDU — Equivalent Dwelling Unit Neighbor B $ $ $ $ EMU — Equivalent Meter Unit hcf — hundred cubic feet HF&H Consultants, LLC 2 March G, 2009 Cihj of Ukiah Water and Wastewater .Rate Study Proposal ragure z FINANCIAL PLAN INPUT DATA, MODEL STRUCTURE, AND FUNCTIONS Input Documents and Data Worksheets Worksheet Function Customer accounts, ifows, loadings Determines how much revenue is needed from rates 'I• General Documents key data to aid a1 plan, growth projections - 7. Capital Improvement Program Projection factors Water Mgmt Pians Key assumptions and policies Revenue requirement formal financial ooiicies lWorksheet directory Determines the rate increases Revenue from existing rates ner billing data to generate required revenue 2. Revenue Requirement °ivaroi expenses Detemines revenue from Customer accounts, ifows, loadings Determines how much revenue is needed from rates Non-operating revenues Transfers to/from reserves - 7. Capital Improvement Program Facilities master plans Cash -funded projects Revenue Increases Revenue requirement existing and futre customers Official statements for existing Debt -funded projects (Prin 8 Int} Determines the rate increases Revenue from existing rates funding needs to generate required revenue Revenue from rate increases Reserve Funds Operating Determines transfers to and from Capital - upgrades, replacement reserves to achieve targets and Capital - expansion to fund appropriate costs Rate stabilization Variable Costs Unit costs of commodities or services Determines pass-through costs Units (e.g., purchased water, for certain variable costs 6. Revenue From Existing Rates Detemines revenue from Customer accounts, ifows, loadings existing rates Resolutions, ordinances, codes Existing rate structure - 7. Capital Improvement Program Facilities master plans Cash -funded projects Summarizes CIP, allocates to existing and futre customers Official statements for existing Debt -funded projects (Prin 8 Int} and determines cash and debt funding needs HF&H Consultants, LLC 3 March 6, 2009 Lllcialr Water and Wastewater Rate Study Proposal APPROACH FOR WATER RATES AND FEES Water Rates For water rates, HF&H will assess the effectiveness of the current rate structure, both in meeting the financial needs of the Water Utility and in encouraging conservation. We will provide two conservation rate structures as possible alternatives to the current rate structure for considera- tion. By their nature, conservation rate structures achieve more revenue from the volume -based charge than from the fixed monthly service charge (the California Urban Water Conservation Council establishes a 70/30 ratio as the minimum target for conservation rates). This sends a stronger conservation signal, but reduces revenue stability. HF&H will work with the City to achieve a proper balance between the conflicting objectives. HF&H will do a thorough analysis of customer usage data to determine what conservation rate structures will be effective and equitable for the City's customers. The customer usage data also will provide a solid foundation for projections of consumption in future years, taking into ac- count local projections of growth in the service area. HF&H will also recommend a rate structure to be effective when drought or other supply emergencies are declared by the City Council. We will work with the City to determine the ap- propriate triggering points for activation of the emergency rates and usage reduction targets. Water Connection Fees HF&H will assess the current connection fee methodology and effectiveness. We will then up- date the fees utilizing information about planned growth, future capital spending plans, exist- ing capacity to serve and economic conditions. Any recommended change in methodology will be fully described and discussed. For example, the current fee was calculated based on the de- preciated original cost of water system assets, while a strong case could be made to base the fee on depreciated replacement costs which would result in a higher fee level. HF&H will work with the City to determine the most equitable methodology for determining the connection fees while meeting all legal requirements. APPROACH FOR WASTEWATER RATES AND FEES Wastewater Rates HF&H will assess the current rate structure to determine its effectiveness in meeting the City's/District's goals and financial needs. This assessment will include evaluation of the as- signed strength components for both residential and commercial accounts. To properly allocate costs, HF&H will compare estimated loadings based on assigned strengths against total load- ings from the treatment plant and recommend adjustments to strength factors, if necessary. We will also evaluate the effectiveness of the current rate structure in achieving the City's objec- tives, including conservation. The current rate structure is dominated by the monthly fixed charge, wluch achieves high levels of revenue stability, but reduces possible conservation ef- fects. HF&H Consultants, LLC 4 Mardi 6, 2009 Ukiah Water anal Wastewater Rafe Study Proposal Wastewater Connection Fees Working with City and District staff, HF&H will determine the availability of capacity in the Wastewater system to serve new customers, including capacity in the treatment plant, collection pipes, etc. The costs for this available capacity will be allocated to "growth" and a fee will be developed that captures these costs from new system customers. Again, we will work with City and District staff to determine the proper allocations and valuations, and determine the growth that will occur. 2® FiRm EXPERIENCE Over our twenty year history, HF&H has conducted numerous water and wastewater rate and connection fee studies. Our studies have encompassed the full range of studies, from simple to the extraordinarily complex. We have on several occasions been retained to review and then correct work done by other consultants. Recent California studies are summarized in the table below. Additional studies are shown in the Statement of Qualifications included in the Appen- dix. To avoid any possible perception of a conflict of interest, HF&H has always chosen to restrict its services to rate making. We are not a financial advisory firm that assists with issuing debt and may be perceived by the public as having a predisposition toward debt financing, Nor are we an engineering firm that might be perceived as having a business interest in the design and con- struction of projects that are funded through rate increases. We are typically viewed as neutral rate specialists who focus on clearly showing the impacts of different financing scenarios or capital improvement plans on customer rates and bills. Client references are provided in Section 4. CLIENT SATISFACTION Over our history, we have gained the trust and appreciation of our clients in the quality of work that we do. The SOQ in the Appendix includes a copy of the results from our last client survey, in wlvch 100% of our clients indicated a high level of satisfaction with the services we provided. nrcrrt C.011SUItalltS, LLC.. 5 March 6, 2009 Cihj of Ukiah Water and Wastewater Rate Study Proposal Representative Client List and Service Matrix HF&H Consultants, LLC 6 March 6, 2009 Nater Rates Sturnnyater Sinver Rates Connection Fes & Funding ustal'Servic Analysis Financial Planning RecycIR %Vaf Rules City of Alameda X X Alameda County Water District X X Alameda Cduhty%vLide Clean Water Program X Amador Water Agency X X X BaArea StormwafaiMait6geinent Agencies Association X City of Belmont X X X X City of Beverly Hills X X X City of Burlingame X X X X Carmichael Water District X X X Central Contra Costa Sanitary District X Cit of Ceres X X X City of Cerritos X Ci ty of Clovis X X X X X Contra Costa Water District X X X X Delta Diablo District - I I I I X X East Bay Municipal Utility District X X X X X X CitycifEMonte , X X X CityofFairfield X X X Fairfldl&Siatin Sewer District X X X X Fair Oaks Water District X X X Grovelend CommuniWS(irvices District X X X X City of Hayward X X X X City oflmrial Beach X, X X X City of La Puente X X X X Ci&Liriciilrt X X X X, City of Lodi X X X Ci(ofAltos X X X Town of Los Altos Hills X X X X CiOfLos,Banbs X X X X X City of Manteca X Cl'"rbfm&do Park 'X X X City of Modesto X X X Cf of Mo rHil! X A X X X City of Mountain View X X X X City, cfNewoort Beach X X X North Coast County Water District X X X X City of Palo Alto X X X X X City of Paso Robles X X X X X Ci'of Petaluma X X X X X Placer County Water Agency X X X City ofPleosantdri X X X City of Redwood City X X X X City,affthrtart:Nrl, X X X X" X City of Roseville X X X CityofSan Bruno X X X X X Ci ofSan ger X X X anitary District No, 5 of Marin County X X X X an Juan Water District X X X an Mateo Countywide Water Pollution Prevention Pro gmi i X Ci of Santa Rosa X X X X ausalito-Marin City Sanitary District X X X X Scotts Valley Water District X X X Union Sanitary District X Town of Windsor X X X X X X Ci !y of Winters X= X 1 f X X HF&H Consultants, LLC 6 March 6, 2009 Lllciah Water and Wasteavater Date Study Proposal Key staff will include: JOHN FARNICOPF, PROJECT DIRECTOR John Farnkopf (HF&H Senior Vice President) will coordinate our project team's interaction with the City to ensure that all work is completed properly, on time, and on budget. He will work closely with Dan Bishop and Edmund Jones, reviewing all aspects of the project and providing overall Quality Assurance and Quality Control for the project. As a water resources engineer by training and former sanitary district employee, John has a tho- rough understanding of water and wastewater system operations and infrastructure. His rate- making experience began in 1978 with litigation support over water rates. John's 30 years of in- dustry experience include numerous conservation -oriented rate studies. He also has extensive experience with shortage allocation programs adopted by regional water suppliers during the 1986-1992 drought. John was a co-author of the original pricing BMP for the California Urban Water Conservation Council in 1991. He also participated in the recent revision of the pricing BMP. John was also a member of the Water Environment Federation's Task Force that revised the rate -making man- ual for the national association of wastewater professionals-' He was a technical forum panelist on several occasions for the California League of Cities on Proposition 218 matters and has worked closely with the League's attorneys in developing methods for setting water and sewer rates in compliance with Proposition 218. DAN BISHOP, SENIOR ASSOCIATE, PROJECT MANAGER/ANALYST Dan Bishop (HF&H Senior Associate) will serve as the Project Manager. Dan will lead the Water and Wastewater Rates and Fees studies for the City. He will participate in all project meetings and make all formal presentations. He will work closely with Edmund Jones in developing the data needed for the analyses, designing rate structure alternatives, performing the cost of ser- vice allocations, and developing the financial plans. Dan has 25 years of experience in the water industry, both as a utility employee and as a con- sultant. Dan was in charge of developing water and wastewater rates for the East Bay Munici- pal Utility District for ten years. His duties included development of drought rates imple- mented during the 1986-92 drought and migration of the on-going rate structure from a uniform rate to a multi -tiered rate structure following the drought emergency. He also has nearly 15 years of rate, fee, economic and financial consulting for water and wastewater utilities through- out the country. Dan was the primary researcher and author of the American Water Works As- sociation Research Foundation publication, Impacts of Demand Reduction on Water Utilities, an 1 He is the author of Chapter XI, "Implementing Rate Studies" of WEF's Financing and Charges for Wnstelvater Systems. HF&H Consultants, LLC 7 March 6, 2009 Cihj of Llkiah Water and Wastezvater• Rate Shidy Proposal �einpirical analysis of how demand reductions impact revenues, operating costs, and capital costs. Dan also authored the chapter on "Economic Feasibility" in AWWA Manual M50 — Water Resotirces Planning and authored the economic and financial components for The Drinking Water Dictionary (AWWA, 2nd Ed.). He has been active in AWWA, including chairing the Business Administration Division of the California -Nevada Section and as the long-time chair of the sec- tion's Financial Management Committee. EDMUND JONES, SENIOR ASSOCIATE, PRINCIPAL ANALYST Edmund Jones (HF&H Senior Associate) will serve as the lead technical analyst and work with Dan in all areas of the rate and fee studies, including analysis of constunption and billing data, developing the revenue requirements, performing cost allocations, developing the rate/financial planning model and its outputs, and verifying that alternatives meet the City's revenue requirements. He will also be involved with the frequent communications with City Staff that are required to collect and interpret data. He will assist in preparing project docu- ments, reports, and presentations and will also assist Dan with project management duties. All work will be performed by HF&H staff without the use of subcontractors. Certain assign- ments may be delegated to appropriate HF&H junior staff under the supervision of one of the key staff members. More detailed resumes can be found in the SOQ, which is located in the Appendix. 4® CLIENT REFERENCES Preparing water and sewer rate and connection fee studies is one of HF&H's core services. The following projects are representative of our recent work and provide a sense of the depth and breadth of our experience. We encourage you to talk to the contacts listed to get a full apprecia- tion for the quality of the services we provide. City of Pleasanton — Water Rate Consulting Services We have assisted the City of Pleasanton with numerous water rate studies since 1992. In the aftermath of the severe water supply cutbacks in northern California, we initially restructured rates to add three increasing blocks to residential rates. Commercial rates were maintained at uniform consumption charges. We then created seasonal rates for irrigation customers. After the rate restructuring, we have continued to assist with annual updates to account for increases in purchased water costs from their wholesale water supplier. Maintaining capital reserves for replacement and improvement projects has always been a key consideration. HF&H is currently helping with the latest update, which includes adding a fourth tier to the residential increasing block rates. Reference: Steve Cusenza, Utility Planning Manager, 925-931-5507, P.O. Box 520, 3333 Busch Road, Pleasanton, CA 94566 HF&H Consultants, LLC 8 March 6,200-9 Ukiah Water aril Wastewater Rate Shitty Proposal Placer County Water Agency - Retail Rate Restructuring PCWA had retail and wholesale M&I and agricultural customers located in 5 zones. HF&H was retained by PCWA several years ago to assist with simplifying its water rates, which were summarized in a 100 -page booklet. Working with Staff and the Board in work sessions, we me- thodically critiqued their rates and identified numerous opportunities for simplification. Since then, PCWA's rates have evolved. Most recently, PCWA asked us to review its rates for compli- ance with the California Urban Water Conservation Council's revised BMP 11, which specifies that at least 70% of the revenue should be generated by flow -based charges. In PCWA's 'case, this required shifting revenue from the fixed charges to its tiered commodity rates. Reference: Joe Parker, Finance Officer, 530-823-4875,144 Ferguson Road, Auburn, CA 95603 City of Belmont - Sewer and Stormwater Rates HF&H has worked with the City of Belmont for over 10 years, providing updates to their wastewater rates and determining appropriate stormwater charges. We have recently been as- sisting them in developing fees to cover the costs of a major treatment plant upgrade. Refer- ence: Thomas Fil, Finance Director, 650-595-7435, 1 Twin Pines Lane, Suite 320, Belmont, CA 94002 City of Lincoln -Water and Sewer Rate Studies HF&H has been helping the City of Lincoln with its water rates since 2003. Working closely with City Council Committees to develop objectives and rate alternatives to meet those objec- tives, we helped the City move to a tiered rate structure. Reference: Steve Ambrose, Adminis- trative Services Director, 916-645-4070, ext 206, 600 Sixth St., Lincoln, CA 95648. Qy of Modesto Water Rate Review We recently completed a very detailed critique of another consultant's work that had projected considerably more water revenue than was actually being received. The rate analysis was somewhat complex, combining a complete overhaul of the rate structure, a combination of un- metered and metered accounts, a billing system that was not user friendly, and a short time frame for rate development. Our analysis revealed problems u1 both the assumptions used and the way they were incorporated into the revenue requirements to determine the rates, which led to overestimated revenues of nearly 15%. Given the problems with the rates, concerns with Proposition 218 compliance also needed•to be addressed. Reference: Richard Rudnansky, Esq., Meyers, Nave, Ribak, Silver & Wilson, (707) 545-8009, 401 Mendocino Ave, Suite 100, Santa Ro- sa, CA 95401 The City has set a requirement that the studies be completed within 60 days of the official con- tract award. This is a very aggressive schedule, and will depend heavily on the ability of staff to provide needed data and information. With that said, HF&H will commit to meeting the 60 day target. As one of the largest rate firms on the West Coast, we can apply the necessary re- sources to accomplish the City's target date for either or both of the studies. HF&H Comitltartts, LLC 9 March 6, 2009 Cihj of Ukiah Water and Waskwater Rate Shirty Proposal Assuming City Council's award of the contract is Wednesday, April 1, we propose the follow- ing schedule which will apply to either or both of the studies: Week ending 4/3 Week ending 4/10 Week ending 4/17 Week ending 4/24 Week ending 5/1 Week ending 5/8 Week ending 5/15 Week ending 5/22 Week ending 5/29 TBD by City TSD by City Kick-off Meeting, Data Collection Data Collection, Analysis, Begin assessment of existing rates and fees Model development begins, Rate/Fee alternatives identified Council, Board work session, guidance/input on rate alternatives Develop rate alternatives, finalize financial models Final models in place, preliminary rates and fees established Council, Board work session on preliminary rates and fees Draft Final Reports, prepare Prop 218 notices Issue Final Reports Present Final Report to Council, Board, Public at meeting Prepare for and attend Public Hearing (Prop 218) Based on our understanding of the City's objectives and requirement and our experience with other projects, we are confident that the Scope of Work'proposed by the City is appropriate. While we have no exceptions to request, we do want to point out that there are conditions listed in Section B. Study Requirements, that may create difficulties in developing adequate rate structures. These include: #6. "...shall assume base rates to cover fixed costs and consumption rates to cover vari- able costs." For nearly all water and wastewater utilities, fixed costs may represent more than 80% of total costs. Recovering all of these costs from the monthly service charge will remove most, if not all, of the conservation incentive from the volume charge. #10. "...no decrease in stability of the revenue stream to the Water and Wastewater fund, as compared to the current structures." In order to achieve a conservation impact, more revenues should be recovered through the volume charge than the fixed monthly service charge. However, to achieve this re- sult, there will be a loss of stability in revenues. HF&H will work with City and District staff to balance these conflicting requirements. HF&H ComithaWs, LLC 10 March 6, 2009 225 Bust} Street Suite 1825 San Francisco, California 94104 T: 415.445.8947 F: 415.398.1601 FCS GROUP Solutions-Chienkid Crmsulting March 6, 2009 Mary Horger, Purchasing Department City of Ukiah goo Seminary Avenue Uldah, California 95482 Redmond Town Center 75251661" Ave. NE., Suite D-215 Redmond, Washington 98052 T. 425.867.1802 F: 425.867.1937 14020 SE Johnson Road Suite 205 Miiwaulde, Oregon 97.267 T:503.353.7440 E: 503.353.7442 RE: PROPOSAL TO PERFORM A WATER AND WASTEWATER RATE STUDY Dear Ms. Horger and Members of the Selection Committee: The City of Ukiah (the City) will soon begin a cost -of -service study to develop updated water and wastewater user rates. FCS GROUP is excited to present our qualifications and proposed approach to help you meet your goals. We believe we understand your needs and objectives with regards to this study, including the following key issues: 1. Sound reserve and fiscal policies; 2. Sophisticated, yet user-friendly, financial models - annual updates and "what -if' scenarios; 3. Fair and equitable rates and fees; and 4. Conservation features. Through the study, the City must develop rate structures that achieve policy objectives and that are easily understood and administered. This issue is particularly relevant to water rates and the increasing pressures to conserve water by the City. In this regard, we are currently working with various agencies in California, such as the Cities of Oceanside, Carlsbad, and Del Mar to address conservation efforts, and have developed what we believe to be a unique approach to examining revenue fluctuations due to curtailment requirements and incorporating agency specific price elasticity factors. We have developed rate programs that are designed to promote ease of implementation, revenue stability, and conservation response. The task plan we have proposed in the main body of this proposal adheres to the scope delineated in the RFP. We have also expounded on the individual tasks, providing some additional details on our approach. I want to highlight some of the areas that we will focus on during this study: + We will produce a rate package for both utilities that is defensible, equitable, and designed to provide fiscal stability. + We will work with staff, the City Council, and the utility stakeholders to promote the study findings and recommendations. o We will provide credibility and leave ultimate ownership of this process with City staff. o Finally, we will be thorough, yet do so while limiting the impact on staff and budget. For this study, it will be important for the City to select a team that is willing to dive deeper; one that has broad industry perspective across multiple boundaries; and one committed to the future sustainability and defensibility of the City's rates. We understand that rate increases can be politically sensitive. There is a need for transparency in documentation, clear communication to public bodies, and the highest level of QA/QC. You can rely on our team to provide the highest caliber of consulting services. FCS GROUP will develop rates designed to provide equity between utility customers, be legally defensible, and achieve the City's utility fiscal policies. In order to tackle these issues, we have proposed an interactive approach with City staff. FCS GROUP has recently completed or will soon be finalizing similar services for clients including the cities of Riverside, Oceanside, Carlsbad, Del Mar and San Jose, as well as the Orange County Sanitation District,.the Sacramento County Water Agency, and the Sacramento Regional County Sanitation District. Since our founding in 1988, FCS GROUP has performed more than i,600 utility financial studies ranging from defining sound fiscal policies that enable good engineering practices to forming municipal utilities. Working for local governments on "cost -of -service" issues is our sole practice. With the FCS GROUP Team, you can Zook forward to: o Responsive management and valuable advice and guidance from Ed Cebron, on,creative approaches to resolving complex rate issues. As a founding principal at FCS GROUP, Ed is an industry leader and has worked extensively throughout the western United States since our firm's inception and is thoroughly familiar with regional issues. Ed is a water district commissioner and was a founding contributor to the Cascade Water Alliance, a water consortium in the Washington Puget Sound. o Responsive technical management from Nicholas Almeida, through execution of a thoughtful, coordinated approach and task plan. Nicholas provides utility rate services to clients in several states, including policy review and financial forecasts; cost of service and cost allocation analyses; and feasibility studies. Nicholas's current clients range from districts, such as the Los Osos Community Services District, to cities, such as the City of Modesto (CA). For the City of Modesto, Nicholas was integral in reviewing the client's customer data as part of the cost -of -service analysis. In doing so, he also identified multiple occurrences in the billing data that indicated potential revenue loss for the client. Nicholas has also provided financial, compliance and performance assessments as a consultant for the public sector and a senior auditor for the State of California. o The "cost -of -service" expertise of Robb Grantham. Robb leads our California practice and brings a breadth of knowledge, having provided utility financial and bond services to over 70 clients in 13 states. Robb is intimately familiar with California statutory and case law requirements, including Proposition 218 rate requirements and CGC 54999 and 66000 requirements for capital facility charges. Additionally, Robb has published extensively on utility rates, including recycled water, and is an author for the soon to -be -released AWWA Mi Water Rates Manual update. o The analytical skills of Mike Kazanjy, who will serve as the lead analyst for the City's study. He has developed accurate and functional financial models for numerous municipalities in California, Washington and Nevada. He also has extensive knowledge building excel based financial models for various utilities throughout the western United - States. Finally, the City will also have access to 10 additional experienced financial and management analysts. This depth of resources will allow our team to meet the proposed schedule or accelerate the schedule as needed. On behalf of our team, I want to thank you for the opportunity to submit this proposal. I look forward to an opportunity to discuss our ideas with you in person. Please feel free to contact me as needed at 415-445-8947 or email at edc@fcsgroup.com. Sincerely, FCS GROUP Ed Cebron Principal -in -Charge Citi- of Ukiah, California Water and Wastewater Rate Study FCS GROETF understands that several critical issues avill need to be addressed daaring develolsraaent of this steady, including the review of financial management policies and consideration of rate policy issues such as rate structure objectives and alternatives. As a leading utility rates and financial consulting firm, FCS GROUP has the necessary background to address each of these topics in a creative and highly analytical manner. We possess extensive experience performing cost of service and utility rate studies for clients in California and the western United States, giving us an inside perspective on the local and regional issues and topics that the City must take into consideration when updating utility rates and fees. FCS GROUP proposes to develop a financial plan and charges that achieve the City's fiscal policies, provide equity between utility customers and are legally defensible. In order to tackle these issues, we have proposed an interactive approach with City staff. As you will note within our study approach, we will maintain ongoing client contact to review study products and recommendations. The,followiraq are several key fecataeres to oa.aa° a pl-77-oaach a Communication Plan - From the outset of the project, we will develop a communication plan for staff coordination, data collection, and product reviews. This plan is intended to eliminate data gaps and misinterpretations, as well as mitigate the study's time requirements on City staff. Further, this process will facilitate the completion of project deliverables within the City's desired timeframe of 6o days. * Policy Review — The foundation of any utility financial study is the development of guiding fiscal policies. We will review existing fiscal policies and develop new policies, as necessary, which promote the long-term financial health of the utility and provide a defensible and easily understandable basis for any of the following rate impacts. We will evaluate appropriate reserve levels and rate structures necessary to fund revenue requirements and to provide cash flows during low -usage years. 'Eater Rate Development —In developing rates, FCS GROUP will review the City's current rate structures and allocate costs to functional constituents and customer classes to create rates that are equitable and conform to Proposition 218 regulations. FCS GROUP will use the findings of revenue requirement (defining costs) and cost of service (assigning costs) analyses to develop specific recommendations for rate design. Our rate development will provide for cost -based conservation features, as well as drought response features, while also addressing the necessary financial elements needed to manage revenue and cost volatility. 4, Wastewater Rate Developi-hent —We will review the City's current rate structure and - explore variations based on water consumption levels, such as using average winter water usage to classify customers as low, medium or high flow users and charging a flat rate commensurate - with these usage classifications. This provides improved proportionality to costs while also maintaining a reliable revenue stream. Additionally, water curtailments during drought conditions might indirectly impact the wastewater utility's revenues. We will explore the potential revenue shortfalls and propose multiple methods to recover these shortfalls. Connection Fee Development — The infrastructure (CIP development) studies currently underway will provide one important building block for system capacity charges, while the rate study delineation of customer base provides the other. The development of capacity charges provides revenue and equity opportunity and a valuable cost benchmark when considering water conservation features in rate design. We have included this feature in our planned system analysis and modeling. * Dyna is Financial Model - We will develop separate analytical models for each utility that Citi- of Uldah, California Water and Wastewater hate Study will be sophisticated yet user-friendly. The models will be tailored to mirror the City's financial budgets and policies. While these models will focus on providing a five-year rate package that can be presented to City Council, they will provide comprehensive 20 -year revenue requirement forecasts that can be updated as needed. Presentations to City Council - The success of this project is dependent upon gaining the support of the City Council, other stakeholders, and the public. We have worked with numerous municipal utilities that range in size from small to large with the western United States, garnering support for politically difficult rate increases. A recent example is when we led the Oceanside Rate Citizens' Advisory Committee process. We will submit presentation material to City staff for their review prior to taking the material before the public. It is critical that staff is comfortable with the study recommendations and that they become the ultimate owners of the study results. FCS GROUP can take the lead in presenting the material, but will of course defer to City management to establish appropriate roles as necessary and desired. The scope of work for this rate study will center around the issues and elements identified in the RFP. The task plan outlines our proposed structure for undertaking the policy review, analysis, review and documentation of the rate study process. Within this task plan, we have incorporated work products for each scope of work element referenced in the RFP. The following task plan outlines our proposed structure for undertaking the data review, policy review, analysis, and documentation of the rate study process. Within this task plan, we have incorporated work. products for each scope of work element referenced in the RFP. It should be noted that our task order varies slightly from that presented within the RFP, however, all necessary components have been included. Further, the task plan below is our approach to the development of rates and fees for both water and wastewater utilities. To provide the City with an efficient and cost- effective service, we are submitting this proposal for both the water and wastewater tasks requested by the City's RFP. We believe that performing both tasks, simultaneously, provides the City with the most value-added products. �Mt I s:' ; - ,.€ (i ,. l!] (' FCS GROUP will keep an open line of communication with the City through meetings and a project management and control plan. This plan will establish the protocols for communication and data transfer. The plan will help to minimize the time impacts on staff, while enhancing data transfer from staff. 1.1 hick -off Meethig & Data Collection — FCS GROUP will hold an on-site project lick -off meeting with City staff to review the scope of work., background information, initial data needs, and to establish appropriate lines of communication for any arising concerns. The history and context of existing fees will be reviewed and discussed as well as management preferences related to the project. FCS GROUP will develop a preliminary written data request that will precede the project lick -off meeting, so that readily available materials can be assembled and remaining data needs can be reviewed and discussed. The data request will address current fiscal policies and practices, historical and projected operational and maintenance expenditures, operating transfers, non- operating revenues, debt service requirements, replacement funding, capital improvement needs and customer data, among other things. 3.2 Com unication Plan — Following the kick-off meeting, FCS GROUP will develop a project management and control plan to facilitate communication with the City regarding progress, technical issues and planned activities. This plan will establish the.protocols for communication and data transfer. The plan will help to minimize the time impacts on staff while enhancing data �4 FCS GROUP Citi" of Ukiah, California water and Wastewater hate Study transfer. Our technical manager will be the primary client contact for data collection and analysis, with direct and targeted interaction with the managing principal -in -charge, technical advisor, and analyst. We will thoroughly review the data received for adequacy and completeness and assess the need for additional data. As necessary, FCS GROUP will work with the City to develop a plan to fill in any data gaps when there are omissions or deficiencies in the data. Task Prepare B1 I lt1Mj t Projections ..; n d Assess Revenue Re lMti L I i i' I t 1 e I 1 i ^ FCS GROUP will perform a financial analysis which evaluates utility revenue requirements that account for all costs associated with operating and maintaining the water and wastewater utilities. These analyses will rely on historic expenditures; projected operating, non-operating, debt -related and capital expenditures; changing demands; and, projected revenues. The analyses will be captured in financial planning models. The models will be structured to project revenue needs related to a ao-year planning horizon. The model will allow the user to evaluate both short- and long --term rate strategies in a comprehensive manner and will calculate rate revenue requirements based on cash flow, bond coverage, and fiscal policy requirements. ,-.g Policy Framework- / Fiscal .Policies Review - FCS GROUP will work with the City to identify, analyze, and agree on financial management policies and rate policy issues. In developing 'the financial models, we will review and evaluate each utility's current guiding fiscal policies as they relate to capital funding, and appropriate operating, capital, rate stabilization and connection charge reserves/funds. As necessary, we will work with the City to develop or refine fiscal policies. Further, FCS GROUP will meet with utility management to review and evaluate potential rate structure alternatives. Based on our experience, we will advise the City on key features which help promote policy objectives while retaining equitable cost recovery. We will address the City's objectives in achieving water conservation goals and the effect of these conservation efforts on their utilities. As part of this process, FCS GROUP will review any City policies or ordinances that address conservation, and make any recommendations as necessary. Revenue Requirement — At the foundation of any utility rate study is a revenue requirement, which uses projected cash flows and debt service requirements to project revenue shortfalls. Using historical records, FCS GROUP will project future operating and maintenance expenditures. Ongoing expenditures will be escalated annually on a line -item basis using a range of escalation factors. For example, variable costs, such as power, will increase not only by general cost inflation, but also with increases in utility demands. Additionally, debt and non-operating revenues and expenditures will also be evaluated and accounted for in the financial model. FCS GROUP will incorporate the City's capital improvement program (CIP) within its analysis, including all future capital improvement projects identified. It is our understanding that the CIP is currently being developed and that relevant information regarding anticipated capital improvements would be made available for the study. FCS GROUP will recommend a capital funding strategy based on debt ratios, replacement and expansion needs, funding sources, and rate impacts. To the extent necessary, the model will also utilize cost "S" -curves that take into account the timing, duration and costs of specific projects. This feature will allow staff to review potential projects from a fiscal perspective and assess the feasibility of such projects before spending too much time and money evaluating potential projects from an engineering standpoint. Using these projections, FCS GROUP will develop financial models for each utility that incorporate the preceding tasks and assess the forecasted revenues through a cash flow sufficiency test and debt service coverage test. The result of the analyses will be a projection of rate revenue required to service total service operations and debt. The model will consist of a functional set of methods and data and will allow the City to update revenues and expenses, and calculate costs associated with the distribution, collection, and treatment of water and wastewater. +4,� .SCS GROUP 3 Cita- of Ukiah, California Water anti Wastewater Rate Study The rate design analysis determines, using system planning and statistical data, an allocation of costs to customer classes, defining an equitable cost -based rate burden. Since restructuring rates will almost inevitably shift cost burdens, a valid cost allocation analysis is essential to an equitable allocation and recovery of costs. Our proposal therefore begins with a management review of general rate options, is then supported by a cost analysis process, and returns to a review of specific rate proposals. 3.1 Customer Data Analysis — FCS GROUP will evaluate historical billing information. Due to the variable nature of utility rates, it is important to evaluate a multi-year trend and determine the potential revenue lulls during low -usage years. We will thoroughly examine the usage data, calibrating billing records against actual rate revenues to prevent over or under estimation of the City's customer base. We will also identify City specific price elasticity factors by customer class as patterns are discernable within the customer data. This is a critical step when setting appropriate and sufficient rates. 3.2 Develop Proposed Rates and Fees — This task involves three separate components —1) allocating costs by function, 2) allocating costs by customer class, and 3) calculating water and wastewater rates. Based on the rate evaluation performed under the previous tasks, FCS GROUP will develop rates for each utility based on the preferred rate structures. These rates will be based on "cost -of -service" principles that incorporate the work performed in all previous tasks and will adhere to Proposition 218 requirements. We will develop rates using a financial model that we will develop tailored to the City's data and needs. Further, we will review and update miscellaneous fees. As a part of our development of potential rate structures, FCS GROUP will also include a provision for an emergency rate structure to address loss of ground water supply and drought. In this review, we will consider the extent that the City already maximizes its use of wells when determining the net impact of any future curtailment requirements. As noted in Task g.1, the review will also include an analysis of price elasticity factors for the City's customers. Based on our experience and research, we know that price elasticity factors differ not only by customer class (where commercial customers are more price sensitive than residential customers), but these factors will also vary within a customer class. We will account for this interclass variation based on the City's customer usage distribution, which can have a significant impact on a utility's water rate pricing strategy. 3.3 Internal Review — FCS GROUP will conduct an independent and objective review of the proposed rates for each utility. This review will be performed by a senior project manager with extensive experience developing utility rates. This proposed task is additive to the City's original project scope. However, we believe this proposed QA/QC process is vital to delivering tested and defensible recommendations. We believe the level of this review is unique and reflects the depth of our resources. Task 4 - Project Meetings, Presentations, and Draft and HnM Reports Based on the findings and recommendations of this study, FCS GROUP will develop a draft and final report, attend meetings with staff, and present to City Council. 4.1 Project Review Mectings — FCS GROUP will participate in three (g) on-site meetings and maintain ongoing communication with City staff, City Council and the District's Board. We have scoped an on-site lack -off meeting (described in 1.1); an interim status joint working session with the City Council and District's Board; and a public hearing where rates are adopted. The technical manager will attend all on-site meetings and presentations while the managing principal -in -charge will be available for the project kick-off meeting and on-site for the interim status meeting. Further, the managing principal -in -charge and technical manager will also be available via teleconference for FCS GROUP 4 City of Ukiah, California Water and Wastewater Rate Staid}_ additional project review meetings and updates, as necessary. FCS GROUP has successfully held project review meetings using GoToMeeting1m, a Web conferencing tool that allows you to meet online rather than in a conference room. It's an easy and cost-effective way to organize and attend online meetings. This technology enables clients and consultants to simultaneously view any application running on a PC in real time over the internet. 4.22 Prepare Draft Report — After all analyses have been performed, FCS GROUP will develop a draft report. The report will contain an executive summary that provides a clear and concise overview of the study and its recommendations. The main body of the report will provide additional detail and supporting charts and graphs. FCS GROUP will' provide an electronic version of the draft report and 15 copies (as requested) for staff review and comment. 4.5 Prepare Final Study Report — Based on staff review and comment, FCS GROUP will finalize the report and submit an electronic version and 15 copies of the final report to the City. 4.4 Computer Bate. Model — We believe that having a usable financial planning tool is a critical project deliverable. The models will allow City staff to run "what -if' scenarios as necessary, often times eliminating no-go projects before spending significant time or money investigating their feasibility. The model will also be designed to be transparent, allowing staff to quickly respond to questions regarding specific impacts to rates. As a part of this effort, our technical manager will work with identified City staff to provide a tutorial on how to use the model. 4.5 Report Presentations to City Council — FCS GROUP will provide a draft report and final report presentation (i.e., two presentations) to City Council. and to the Ukiah Valley Sanitation District Board at a Council and Board Work Session. These presentations will allow us articulate the methodology behind our analysis and promote our recommendations. If requested, FCS GROUP is available to make additional presentations. CITY OF OCEANSIDE, CA -Drought Emergency Water bates and Water Utilities Financial Playa Key Personnel: Ed Cebron, principal; Robb Grantham, study manager; Matthew Mullen, analyst. Client Contact: Lonnie Thibodeaux, (760) 535-0527. Part I: Southern California is experiencing water shortages due to drought conditions, as well as reductions in water supplies from the Colorado River and Sacramento River Delta. With these supply restrictions, the City of Oceanside received notification from the San Diego County Water Authority that mandatory water curtailments would be imposed under certain drought conditions. The City hired FCS GROUP to develop equitable drought rates which promote conservation and protect the City from revenue deficiencies despite reductions in water usage. In order to develop equitable and effective drought rates it was necessary to account for several factors: historical customer data, price elasticities, temporary versus permanent reductions in demand, fixed versus variable costs, water surcharges, water allotments from the San Diego Water Authority, and varying levels of drought severity. FCS GROUP incorporated these factors in developing rate structures that were easy to implement, adhere to rate equity requirements, and reward users for reducing consumption. The rates produced achieve the majority of the necessary water reduction by targeting discretionary water usage. This was accomplished by implementing different rate structures for varying levels of drought, including the implementation of an additional tier in the City's current inverted block rate structure, and a completely redesigned rate structure that utilizes water budgets based on users' average winter consumption levels. These structures promote water conservation while maintaining the fiscal health of the City's water utility. -°� FCS GROUP 5 CIty of Ukiah, California Water and Wastewater Rate Study Part II: The Water Utilities Financial Plan was led by Robb Grantham (initially begun while Robb was with Carollo Engineers) and involved developing near- and long-term rate forecasts, developing buy -in charges (connection fees), and analyzing the rate structure for water, wastewater, and recycled water. The rate structure was developed within the rate equity requirements of Proposition 218, the State Water Resources Control Board, and Oceanside's State Revolving. Fund loan. The study also examined wholesale customer and low-income rates. Nearing completion, the master plan includes a nine-month Citizen's Advisory Committee (CAC) process, of which the financial study is the primary focus. The CAC process was designed to provide its representatives with an overview of the financial and rate program, facilitate open,discourse among its members, and result in buy -in of the final recommendations by the CAC, and ultimately the City Council. The financial analysis evaluated bond sizing and timing based on capital improvement needs. Through a prioritization process, capital projects were bundled and or delayed due to funding limitations and bond issuance optimization. The strategy was designed to provide Oceanside with cost savings by minimizing issuance costs. This study also included an interim financial/rate plan and update. Ivey Personnel: Ed Cebron, principal; Robb Grantham, study manager; Mike Kajanzy, analyst. Client Contact: David Underwood, (916) 987-1120. The Sacramento County Zone 41 Water Utility serves over 160,000 people in a growing service area. It's service extends beyond the zone to both retail and wholesale customers. The goals of this rate study included forecasting levels of rate revenues and reviewing water rate structures for consistency with costs and industry trends. As a part of the rate forecasting element, policy and management issues related to utility reserves, capital financing, and capital replacement funding strategies were examined and recommendations were incorporated into the forecast. A spreadsheet model allowing continued utility forecasting and policy assessment was developed and provided as a project deliverable. Training sessions were incorporated into our scope of work to facilitate ongoing utility use of the model. The rate evaluation included an analytical determination of costs and quantitative development of structural options. The study findings were fully documented and supported in anticipation of necessary public process related to adoption. In particular, issues related to wholesale customer charges and differential cost allocations between metered and flat rate accounts were potentially volatile study outcomes that required analytical and documentation support that was clear in its method and communication of results. Through the analysis of water demand data, the rate evaluation also provided input into the question of reserve levels and structure, as transition to. metering and emphasis on conservation rate features both added to revenue variability and risk. In addition to the development of traditional rate structures, the Zone 41 utility imposes a variety of miscellaneous rates and charges. This study developed, discussed and analyzed recommendations related to: vacant parcel (standby) charges; fire protection service; construction water (hydrant or temporary meters); and outside -District multiplier. LAS ARROWHEAD :fixry R O. COMMUNITY DISTRICT, Water - Wastewater Comprehensive Financial Master F) an Ivey Personnel: Ed Cebron, principal; Angie Sanchez, study manager; Mike Kazanjy, analyst. CIient Contact: Jack Hoagland, (go9) 836-7102. FCS GROUP prepared a Comprehensive Financial Master Plan for the Lake Arrowhead Community Services District. This multi -faceted project included a complete rewrite of all rates and fees imposed by this water and wastewater agency, including analysis of long-term financial needs, 44,E FCS GROUP 6 CiLy of Ukiah, California Water and Wastewater Rate Studer policies, accounting practices, and comparative costs. The plan established a blueprint for achieving strong financial performance in the future to help the District face its critical needs: most significantly, its development of a permanent long-term water supply solution. The plan was also tasked with improving the understandability of the District's cost recovery and financial management practices by the community it serves. The District's most pertinent challenge has been mitigating potable water importation expenses by limiting potable water use for irrigation and encouraging water conservation by the general public. The specific analyses conducted for this study included a fiscal policy review, detailed review of the District's existing infrastructure and planned facilities, a complete redesign of fees and rates charged to existing and new customers, and a pricing strategy for potential recycled water programs. The proposed rates were based on "cost of service" principles, falling within Proposition 218 requirements and pursuing the District's water conservation goals. In addition, the District's water and wastewater connection fees were developed in accordance with California Government Codes 54999 and 66000. At the conclusion of the study, FCS GROUP provided the District with a computer model that allows District staff to adjust operating expenses and revenues, add or remove capital projects and additional capital funding, and forecast revenues needs on a 20 -year horizon. FCS GROUP is a firm specializing in financial and management consulting services for the public sector. Within our 33 -person firm, we retain a diverse skills set and have available in-house the needed expertise to fulfill the City's entire scope of work. We take an attentive and creative approach to projects, emphasizing active roles for our principals and senior managers to ensure the value of their experience, expertise and insight is delivered on every assignment. We have assembled a team of consultants possessing both the depth and breadth of related experience to bring forth innovative, yet practical solutions for the City. In this section, we introduce the members of our Project Team, describe their primary roles on the project, and provide a brief professional biography for each. Full resumes are located in the Appendix. Resume 'briefs' are provided below. EDWARD CE S N -- MANAGING PRINCIPAL -IN -CHARGE M.S., Infi-ast7zacture Planning & Management, .Stanfoa•sl Univei ,sitzL B.S., Engineering Science, Haa•va7,d University Ed Cebron is vice president and principal of FCS GROUP and has over 26 years of professional " experience, serving municipalities on more than 60o rate and economic studies for water, sanitary sewer, reclaimed water, storm water, and solid waste utilities. As the managing principal -in -charge, Mr. Cebron will be actively involved in the study and fully conversant in our progress; findings, and recommendations. He will attend the project kick-off meeting, two of the three on-site project review meetings, and will take the primary role in presenting findings to staff, Committees, and City Council. Furthermore, he will review progress and work products with City staff and be in regular contact with the City's project manager via telephone and email to address issues as they arise. As director of the firm's Utility Rates and Finance practice, and Officer -in -Charge of the California consulting practice, his work covers all aspects of utility finance, rates and charges. His specialty focus is providing innovative solutions to complex regional supply/treatment issues, unique wholesale arrangements, and special pricing mechanisms. Mr. Cebron's work experience in California extends over more than 20 years. ,�FCS GROUP Cita* of Ukiah, California Water and WasteivateI' Rate Study Mr. Cebron's recent relevant Experience: 0 Utility Rate Study, Sacramento County Water Agency, CA $ Water and Wastewater Rate Study, City of Manhattan Beach, CA 0, Water, Sewer, and Stormwater Rates & Capital Connection Charges, Redmond, WA 0 Comprehensive Financial Master Plan, Lake Arrowhead Community Services District, CA 0 Water, Wastewater & Reclaimed Water Long -Range Fiscal Planning Model & Cost -of -service Study, Westminster, CO Water, Wastewater & Reclaimed Water Cost -of -Service Rate Study, City of Sunnyvale, CA 0 Water and Wastewater Financial Planning Study, Mammoth Community Water District, CA 0 Water and Sewer Rate Update, City of Brisbane, CA 0 Water Development Fees and Charges Review and Design, City of Riverside, CA 4 Various Utility Rates and Finance Projects Since 1986, Stockton, CA Various Utility Rates and Finance Projects Since 1989, Washoe County, NV €_ T Nicholas Almeida is a project manager at FCS GROUP. In this position, he provides utility rate services to clients in several states, including policy review and financial forecasts; cost of service and cost allocation analyses; and feasibility studies. Nicholas' current clients range from districts, such as the Los Osos Community Services District, to cities, such as the City of Modesto (CA). For Los Osos, Mr. Almeida successfully executed a "quick start" project that allowed for the development and review of an expedited product for the District. As a part of this work, Mr. Almeida also facilitated the development of revised policy objectives related to their reserves and system reinvestment funding. These policy objectives were incorporated into the financial model with functionality that allowed for "what -if' scenarios to assess the impact of policy implementation on water rates. As the technical manager, Mr. Almeida will be responsible for the ongoing execution and completion of the work plan, matching analyses and deliverables with the City's needs, goals, schedule, and project budget. Mr. Almeida will lead the onsite data collection efforts, direct the development of technical models, provide financial analysis, review progress and work products with City staff, and lead documentation efforts. Along with the managing principal -in -charge, Mr. Almeida will conduct project administration and management procedures that serve to sustain clear and open channels of communication between our consulting team and the City's project manager as it relates to the technical analyses. ROBB GRANTHAM - TECHNICAL ADVISOR B.S., Gouer•nrnent and Histovy, Fr-anklin and Mar -shall C'olIege Post Baccalaur-eate, Engineeving Science, Rutgers University College ®f Engineer7ng Mr. Grantham specializes in financial and management analyses for water, sewer, reclaimed water, stormwater, solid waste, and transportation utilities. He has worked with over 70 municipalities in 13 states, including California, Washington, Oregon, Arizona, Texas, and Hawaii. Mr. Grantham is an expert on California water and wastewater rates and connection fees, including Proposition 218 and Government Code 64999 and 66000 statutory requirements. He will serve as a technical advisor to this study, providing guidance and review as needed for interim and final project deliverables. Mr. Grantham is active in industry associations, including currently serving on the WateReuse Association's Project Advisory Committee which provides oversight for the development of a handbook for developing recycled water rates. He also recently published an article with the Underground Infrastructure Management Magazine on recycled water rates and cost -of -service F GROUP Cit}- of Uldah, California Water and Wastewater Rate Study allocations. Robb is also a member of the AWWA National Rate Advisory Committee and a contributing author to the soon to be released AWWA MY Rates and Charges Manual. MICHAEL KAZA JY - ANALYST B.A. Economics, University of Catiforiaia, Berkeley Michael Kazanjy is an analyst with FCS GROUP focusing on analytical work in support of the firm's utility rate and general government financial consulting efforts. Mr. Kazanjy has provided utility rate services in the areas of water, reclaimed water and wastewater in the states of California, Washington and Nevada. He specializes in revenue analysis, determining equitable cost of service, developing tailored rate structures, and calculating appropriate connection fees. Mr. Kazanjy also has experience in the transportation and private equity research. Mike was instrumental in the success of the Lake Arrowhead CSD financial master plan, and is currently active on the Los Osos CSD and City of San Jose studies. For the Lake Arrowhead -CSD financial master plan, he developed cost -based block rates pertaining to the District's imported water costs. He is currently active on the Los Osos CSD study, in which he has developed a water demand distribution to project revenue impacts of various rate designs. Further, as part of the City of San Jose study he developed appropriate connection fees for the City's storm and sanitary sewer collection and treatment systems, as well as the City's recycled water program. We have developed the following project schedule based on the scope of service delineated in the task plan above; an assumed availability of information provided by the City; and the timeliness of data requests and work product reviews fulfilled by the City. In the event that there are delays in receiving information, FCS GROUP would work with the City to negotiate and agree on a new schedule. -o,'4>FCS GROUP �o 1. Project Management & Data Collection Project Management Klck-Off Meeting & Data Collection 2. Prepare Budget Projections and Assess Revenue Requirements Policy Framework 1 Fiscal Policies Review Revenue Requirements µ ` 3. Develop Proposed Rates Customer Data Analysis Develop Proposed Rates & Fees Internal Review 4. Project Meetings, and Draft and Final Reports Council Interim Meeting and Adoption of Rates Draft Report Final Study Report Report Presentations to City Council LEGEND: GD Notice to proceed A City Council Presentations (TED) Kick-off and data validation meeting with City staff Report Deliverables Interim review meeting with City Council and attendance at rate adoption -o,'4>FCS GROUP City of Uldah, California Water and Wastewater Rate Study As requested in the RFP, the following are three references from projects completed in the last five years by the proposed team members. Further, the above project listing provides additional client contact information for other projects. City of Manhattan Beach, CA Jim Arndt, (310) 802-5303 Los Osos Community Services District, CA George Milanes, (805) 528-9376 City of Modesto, CA Steve Stroud, (209) 341-2914 FCS GROUP has read the draft professional services agreement attached to the City's RFP and we generally agree to the terms stated therein. If selected for this study, we would request the opportunity to further review and negotiate contract language with the City. Based on our review, the following are minor modifications that we have identified for the City to consider: Paragraph 3.1. states that: "Consultant shall complete the work to the City's reasonable satisfaction, even if contract disputes a7-zse or Consultant contends it is entitled to further compensation." We would like for the City to consider the following language in lieu of Paragraph 3.1, "Consultant shall complete the agreed upon work relying upon its study team members' experience, professional judgment and appropriate analyses, independently and objectively applied to the work, and the City shall not unreasonably withhold acceptance of Consultant's work." Paragraph 4.2 -We would like to add the following to this paragraph: Unless FCS GROUP is unable to meet the original agreed upon schedule due to any delays caused by the City's inability to provide the documentation that we need to perform our work or for any other reason not within the control of FCS GROUP, then a new schedule will be mutually agreed upon. Further, if FCS GROUP's services are temporarily suspended by the City in the interest of the Project and with written notice to FCS GROUP, and the suspensions last longer than 90 consecutive days, FCS GROUP shall be compensated for the labor and direct expenses incurred due to the interruption and resumption of services. Paragraph 4.4 indicates that the "invoices must provide a description of each item of work pet formed, the time expended to perform each task, the fees charged to each task and...." Our billing systems prints invoices that show the person who performed the work, hours, billing rate and extended amounts. We would like for the City to consider modifying this paragraph to note that the description of the work performed may be included in the progress report, which accompanies the invoice, rather than on the actual invoice. �o FCS GROUP ITEM NO.: 11 c MEETING DATE: March 18, 2009 Ci ty of- U kja h SUBJECT: CONSIDERATION OF APPROVAL OF SENDING A LETTER TO THE STATE WATER RESOURCES CONTROL BOARD IN SUPPORT OF LOCAL AGRICULTURE FROST PROTECTION Discussion: Councilmember Thomas requested placement of this item on the agenda for City Council's consideration. A letter can be drafted and sent by the Mayor based on City Council discussion. Fiscal Impact: F—] Not Applicable Budget Amendment Required Budgeted FY 08/09 F—] New Appropriation Fx-1 r Recommended Action(s): Consideration of Approval of Sending a Letter to the State Water Resources Control Board in Support of Local Agriculture Frost Protection. Determine substance of letter, if applicable, and authorize Mayor to sign the letter. Alternative Council Option(s): n/a Citizens advised: Requested by: Councilmember Benj Thomas Prepared by: Linda Brown, City Clerk Coordinated with: Jane Chambers, City Manager Attachments: Approved: j4t!4 'chambers, city manager Y Draft March 16, 2009 Mr. Charles R. Hoppin, Chairman State Water Resources Control Board P.O. Box 100 Sacramento, CA 95812-0100 Dear Chairman Hoppin: At the direction of a unanimous Ukiah City Council, I am writing to make a case for continuing availability of Russian River water for frost protection below Coyote Dam. We understand that a ban on such use has been raised as a possible way to conserve water and protect fish in a dry year. Certainly water conservation is a must at this point in time, but decisions about conservation must be made after involving all of the parties affected and with informed regard for the latest water supply information. It is our understanding that neither of these elements had been adequately taken into consideration at the time of the initial frost protection ban suggestion. Moreover, the suggestion ignored the fact that agriculturists in the region had worked out what is still a viable solution for protecting not only their resources, while at the same time ensuring an adequate water supply for both downstream users and fish support. The City is concerned not only for the welfare of our agricultural neighbors, but for the economy of the region extending into northern Sonoma County. Agriculture is the big engine in the Mendocino County economy, with agriculture revenue being the primary support for many other businesses and service providers. What hurts farmers and vineyard owners in our region hurts us all, directly and powerfully. We are told that a final decision on a ban on frost protection water use has not been made. We urge you not only to continue to allow its use this spring, but to set in place procedures that will lead to transparent decision-making that informs and involves all those affected by those decisions. /s/ Mayor Philip Baldwin ITEM NO.: 11 d MEETING DATE: 1 # . March 18, 2009 SUBJECT: AWARD OF CONTRACT SUBJECT TO STAFF EVALUATION OF TESTING OUTCOMES FOR THE CONSTRUCTION OF THE GOBBI STREET WATER WELL SPECIFICATION NUMBER 09-06, OR ESTABLISHMENT OF A SPECIAL COUNCIL MEETING DATE TO AWARD GOBBI STREET WATER WELL. Background: On March 4, 2009, at a regular meeting of the Ukiah City Council, council adopted the specifications for the construction of a water well at the corner of Gobbi Street and Orchard Avenue. At that same meeting the council adopted an emergency resolution to expedite the construction process. Pursuant to Public Contracts Code Section 22050(b)(1), the City Council delegated authority to the City Manager to order action pursuant to subparagraph (a)(1) of that section and directed the City Manager to undertake all steps necessary to have the well constructed without going through a competitive bidding process. Pursuant to Public Contracts Code Section 22050(b)(3), adoption of this resolution requires the City Manager to report back to the City Council at its next regular meeting setting forth the reasons justifying why the emergency will not permit a delay resulting from the competitive solicitation of bids for the well and why the action is necessary to respond to the emergency. Discussion: The reasons for the emergency were set forth in Resolution No.2009-12. These reasons continue to exist: 1) the State of Emergency declared by the Governor of California due to drought conditions, 2) recommendation to municipalities from Victoria Whitney, Deputy Director for Water Rights for the State of California Water Resources Control Board, that drought conditions may necessitate suspension of surface water rights this summer and to secure groundwater sources, and 3) the time required to drill, develop, and construct a temporary connection from a new groundwater well into the City's water distribution system is not sufficient to comply with the noticing requirements of the Public Contracts Code formal bidding process. The City distributed the specifications to nine builder's exchanges and eleven contractors for the Project Specification No. 09-06. The City publicly advertised this project on March 8, 2009 and March 15, 2009 in Continues on Paae 2 Recommended Action(s): Set March 20, 2009, or the nearest date available, for City Council action to award contract for the construction of the Gobbi Street Water Well Project Specification No. 09-06, to the lowest responsive, responsible bidder based on bids submitted on March 18, 2009. Alternative Council Option(s): Award Contract for the construction of the Gobbi Street Water Well Project Specification No. 09-06, to the lowest responsive, responsible bidder based on bids submitted on March 18, 2009, subject to staff evaluation of testing outcomes. Citizens advised: n/a Requested by: Tim Eriksen, Director of Public Works/City Engineer Prepared by: Ann Burck, Deputy Director Public Works — Water & Sewer Division Coordinated with: Jane Chambers, City Manager Attachments: Approved: Jan=e Chambers, City Manager l� the Ukiah Daily Journal. A copy of the Notice to Bidders was sent to nine contractors including all License Class C57 contractors on the City's 2009 Qualified Contractors List. In addition, a copy of the Notice to Bidders was posted on the City's website. Sealed proposals will be received and opened by the City Clerk on March 18, 2009. A bid tabulation sheet will be provided to the public and the Council at the meeting. AWARD OF CONTRACT FOR THE CONSTRUCTION OF THE GOBBI STREET WATER WELL SPECIFICATION NUMBER 09-06. Subsequent to the posting of the bids for this project, city staff, in accordance with direction given by the City Council, has engaged in some additional testing activities at various potential well sites. This testing activity resulted in undertaking test borings at the Gobbi Street site. Data from those borings will be completed to 300 feet, and should be available by Thursday, March 19, 2009. Therefore, the City Council could choose to hold a Special meeting Friday, March 20, 2009 for the award of this bid if it prefers to do so with knowledge of this additional data. Because time is of the essence in the emergency water situation, Council may choose to award the bid as planned, and rely upon staff's use of the testing information to undertake and direct the contracted services. If the bid is awarded, compensation for the performance of the work will be based on unit prices bid for contract item quantities actually installed. Bid totals are based on unit prices bid for contract items at estimated quantities, and therefore, the actual total paid to the contractor may be lower or higher than the bid total indicated. As with construction projects, there may be cost overruns by reason of unforeseen work or because actual quantities installed exceed estimated quantities. Policy Resolution No. 13, authorizes the responsible Department Head, with approval of the City Manager, to issue change orders not to exceed 10 percent of the original contract sum or $5,000 whichever is greater provided that no change, when added to the original contract sum, exceeds the amount budgeted for the project. Fiscal Impact: F^-1 Budgeted FY 08/09 Fx—] New Appropriation F� Not Applicable Amt. Budgeted Source of Funds (title and #) Account Number $71,872 Water Prod. — Contrac. Srvs. 820.3908.250.001 Budget Amendment Required Addit. Approp. Requested $0 $199,825 Water Util. — Cap. 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