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Home My WebLink About2010-08-18 PacketCITY OF UKIAH CITY COUNCIL AGENDA Regular Meeting CIVIC CENTER COUNCIL CHAMBERS 300 Seminary Avenue Ukiah, CA 95482 August 18, 2010 6:00 p.m. 1. ROLL CALL 2. PLEDGE OF ALLEGIANCE 3. PROCLAMATIONS/INTRODUCTIONS/PRESENTATIONS a. Proclamation: Women's Right to Vote 90t" Anniversary b. Proclamation: Fabulous Flashback Car Show 20th Anniversary 4. PETITIONS AND COMMUNICATIONS 5. APPROVAL OF MINUTES a. Regular Minutes of 8/4/10 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 Month Of July 2010 b. Authorize City Manager To Negotiate And Execute A Revised Memorandum Of Understanding Between County Of Mendocino And City Of Ukiah Regarding Low Gap Park And The Development Of Ukiah's First Skate Park C. Approve Amendment To Professional Services Agreement With Green Valley Consulting Engineers In An Amount Not To Exceed $22,995 For Additional Design Work Related To The Preparation Of Bid Documents For The Gobbi Street Rehabilitation Project d. Update Report Regarding Status Of Water Emergency Conditions Necessitating Emergency Resolution To Expedite Construction Of Oak Manor Drive Water Well e. Update Report On Local Emergency Declaration Regarding Drought And Water Shortage Status f. Approval Of Notice Of Completion For The Redwood Business Park Electric System Reliability Improvement Project, Specification No. 09-13 And Approval Of Final Payment Of The 10% Retention To Wipf Construction. g. Adopt Resolution Approving First Amendment To Agreement For Construction, Operation And Financing Of Combustion Turbine Project One and Quitclaim Deed. h. Report To Council On Implementation Of Water Rate Changes 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) 10. UNFINISHED BUSINESS a. Receive Report And Provide Direction To Staff For Status Of City Of Ukiah/UVSD Wastewater MSR And Other MSR Status b. Adopt Resolution Accepting A Section Of Perkins Street Right Of Way As Offered For Relinquishment By The State Of California Department Of Transportation 11. NEW BUSINESS a. Adoption Of Resolution Approving An Application For Proposition 84 Sustainable Communities Planning Grant And Incentives Program Competitive Grant Funds. b. Award Of Contract For The Orchard Substation Construction Project, Specification No. 10-08 C. Discussion And Possible Action To Amend The Transfer Station Contract To Authorize An Adjustment To The Schedule Of Fees And Rates For Transfer Station Services And Clarifying That The Term Of The Contract Shall Extend To September 30, 2016. d. Discussion And Possible Action To Provide Notice And Conduct A Hearing On Proposed Curbside Waste Collection Fee Increases Pursuant To Proposition 218 And Division 4, Chapter 6, Article 1 Of The Ukiah City Code, Commencing With Section 3950 e. Report On The Mendocino County Board Of Supervisor's Ballot Initiative To Impose A Half- Cent Sales Tax And Consideration Of The Mendocino County Tax Sharing Ad Hoc Committee's Request To Designate Representatives And Meet To Negotiate A Tax Sharing Agreement From The Proceeds Should The Measure Be Approved 12. COUNCIL REPORTS 13. CITY MANAGER/CITY CLERK REPORTS 14. CLOSED SESSION - Closed Session may be held at any time during the meeting a. Conference with Legal Counsel - Anticipated Litigation Government Code Section 54956.9(b)(1) - Significant exposure to litigation (1 case) b. Conference with Real Property Negotiators (§54956.8) Property: APN 180-080-57, 58, 59, 62, 63, 64, 65, 66, 67, and 180-110-08, 09, 10 Negotiator: Jane Chambers, City Manager Negotiating Parties: Ukiah Redevelopment Agency and Northwest Atlantic (Costco) Under Negotiation: Price & Terms C. Conference with Labor Negotiator 54957.6) Agency Representative: Jane Chambers, City Manager Employee Organizations: Miscellaneous Unit and Management Unit d. Conference with Real Property Negotiators (§54956.8) Property: APN 002-232-12, 13 and 002-282-18 and 19 APN 002-232-09, 10, 11 Negotiator: Jane Chambers, City Manager Negotiating Parties: Ukiah Redevelopment Agency, City of Ukiah, North Coast Railroad Authority, Weston Solutions Inc, and Administrative Office of the Courts Under Negotiation: Price and Terms e. Conference with Real Property Negotiators (§54956.8) Property: APN 002-192-01, 02, 03, 11, 14 and 18 Negotiator: Jane Chambers, City Manager Negotiating Parties: Ukiah Redevelopment Agency, City of Ukiah, and Administrative Office of the Courts Under Negotiation: Price and Terms 15. ADJOURNMENT Please be advised that the City needs to be notified 72 hours in advance of a meeting if any specific accommodations or interpreter services are needed in order for you to attend. The City complies with ADA requirements and will attempt to reasonably accommodate individuals with disabilities upon request. Materials related to an item on this Agenda submitted to the City Council after distribution of the agenda packet are available for public inspection at the front counter at the Ukiah Civic Center, 300 Seminary Avenue, Ukiah, CA 95482, during normal business hours, Monday through Friday, 8:00 am to 5:00 pm. 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 August 2010. JoAnne Currie, City Clerk 3a P I~OCLL A` AT Z 0) NV WHEREAS, on August 26, 1920, the 10' Amendment to the United States Constitution was passed, granting women the right to vote; therefore, this year marks the 9CO Anniversary, and WHEREAS, Women suffragists including Alice Paul, who fought for and won the right of women to vote, should be respected and honored for their momentous struggle and victory; and WHEREAS, part of the mission of American Association of University Women (ARUM, the League of Women Voters, National Women's Political Caucus (NWPC), and the Ukiah Saturday Afternoon Club (SAC) is to promote equality for all women, and securing the right to vote has been instrumental in advancing women's rights; and WHEREAS, since the founding of these organizations, they have encouraged women to take advantage of their right to vote to make their voices heard; and WHEREAS, The American Association of University Women, the League of Women Voters, the National Women's Political Caucus, and the Ukiah SaturdayAfternoon Club urge all citizens of City of Ukiah, all civic and fraternal groups, all educational associations, all news media, and other community organizations to join this salute to women gaining the right to vote, and to encourage and promote the celebration of the achievements of all women as they contribute daily to our economic, civic, and cultural purposes. NOW, THEREFORE, We, Mary Anne Landis and Mari Rodin on behalf of City of Ukiah Mayor Ben j Thomas and our fellow City Councilmembers, Phil Baldwin, and Douglas Crane, do hereby recognize the 90THANNIVERSARY OF THE 19TH AMENDMENT and urge all citizens to participate in the scheduled events. Date. August 18, 2010 MaryAnne Landis City Councilmember Mari Rodin City Councilmember SA ^I 0 3~- 3h .fit __r' 0-) C~LA r!( 7 M A proclamation honoring the Twentieth Anniversary of the Fabulous Flashback Car Show of the Early Iron car club of Ukiah Whereas this year's Fabulous Flashback Car Show will take place in our downtown on Saturday and Sunday, September l e and 19r6, and Whereas the Fabulous Flashback Car Show is a treasured tradition in our community and throughout the region, and Whereas there are many associated events, including the notable Pancake Breakfast on Saturday, and Whereas the Fabulous Flashback Car Show brings to our Citylarge n umbers of vintage car enthusiasts to enjoy the event and partake of the amenities that this community offers, and Whereas the Earlylron Club of Ukiah has benefited from the exemplaryleadership of Donna and Tom Cropp in organizing the Fabulous Flashback Car Show, and Whereas the Fabulous Flashback Car Show affords a rich display of craftsmanship and creativity embodied in the beauty of over two hundred cars that represent the full range of automotive history, and Whereas the Fabulous Flashback Car Showis celebratingits twentieth birthday, I, Benj Thomas, Mayor of the City of Ukiah, on behalf of my fellow councilmembers, Phil Baldwin, Douglas Crane, Mary Anne Landis and Mari Rodin, do call upon residents of our city and of the wider community to come to admire, appreciate and express gratitude to the many dedicated individuals and businesses that work tirelessly to make the Fabulous Flashback Car Showhappen during this twentieth anniversary of an event that offers so much to all of us. Date. August 18, 2010 Benj Thomas, Mayor Item 5a CITY OF UKIAH CITY COUNCIL MINUTES Regular Meeting CIVIC CENTER COUNCIL CHAMBERS 300 Seminary Avenue Ukiah, CA 95482 August 4, 2010 6:00 p.m. 1. ROLL CALL 5:59:58 PM Ukiah City Council met at a Regular Meeting on August 4. 2010,4he notice for which being legally noticed on July 30, 2010. Mayor Thomas called the meeting to order at 6:00 pm. Roll was taken with the following Councilmembers present: Landis, Crane, Rodin, Baldwin, and Mayor Thomas. Councilmembetrs absent: None. Staff present: City Manager Chambers, Assistant City Manager Sari'°giacomo, City Attorney Rapport, Director of Planning and Community Develop ont Stump, Building= Official Willoughby', and City Clerk Currie. 2. PLEDGE OF ALLEGIANCE 3. PROCLAMATIONS/INTRODUCTIONS/PRESENTATIONS p/1„ 4. PETITIONS AND COMMUNICATIONS 5. APPROVAL OF MINUTES 6:01:58 I'M 401 a. Regular Minutes of 7/21/10 M/S Landis/C ne to approve the Regular Minutes of July 21, 2010, as submitted. /ol Motion caroici y an all AYE voice vote. 6. RIGHT TO APPEAL DECISI6N 7. Ct*SENT CALENDAR 6:02:02 PM MIS Rodin/Landis to approve the Consent Calendar items 7a-7f: a Notification of,F' rchase of an Automotive Brake Lathe from Snap-on Industrial in a. / j// t~ e Amount of% 3,223.15 b. rd Purcha,~' of 4,500 Feet of 750 KCM EPR Cable for the Electric Utility ///W Department for~the Total Amount of $26,347.95 (EUD) C. Award Purchase of 13,500 Feet of 4/0 STR EPR Cable for the Electric Utility Department for the Total Amount of $30,821.93 (EUD) d. Approve Plans and Specifications for Manhole Rehabilitation & Sewer Pipe Relining 2010 and Direct Staff to Advertise for Bids e. Update Report on Local Emergency Declaration Regarding Drought and Water Shortage Status f. Update Report Regarding Status of Water Emergency Conditions Necessitating Emergency Resolution to Expedite Construction of Oak Manor Drive Water Well Motion carried by the following roll call vote: AYES: Councilmembers Landis, Crane, Rodin, Baldwin, and Mayor Thomas. NOES: None. ABSENT: None. ABSTAIN: None. CC 8/4/10 Page 1 of 5 8. AUDIENCE COMMENTS ON NON-AGENDA ITEMS Mike Peterson, Davey Crockett, spoke in favor of the rehabilitation of the Palace Hotel to increase tourism. Sage Sangiacomo, Assistant City Manager, notified the City Council and the public that the games for Western Regional Tournament of the Babe Ruth World Series started today and will continue all week. This is the second year the Ukiah community hosted the event. Proceeds will go toward the rebuilding of Anton Stadium. 6:06:20 PM Steve Scalmanini, expressed his concern with the August 18, 2010, City Council Water Workshop date conflicting with the economic and demographic presentation sponsored by the Small Business Administration. He is requesting the City Council reschedule the workshop. 11. NEW BUSINESS a. Designation of Voting Delegate and Alternates for 2010 League of California Cities Annual Conference September 7, 2010 6:10`.110 f'M City Manager Chambers presentA/d, the item. Recommonded Action(s): Designate a voting delegate and aIternate(s)e for the 2010 League Annual Conference and authorize the bity T Manager to submit the Voting Delegate/Alternate Form on their behalf. M/S Baldwin/Rodin to nominate Mayor Thomas as the voting delegate and approve recommended acti Motion carried by therp following roll call vote: AYES: Councilmembers LAndis, Crone, Rodin, Baldwin, and Mayor Thomas. NOES: None. ABSENT: NonABSTAIN: None. 12. COUNCIL REPORf Mayor Thomas reported he and Councilember Crane attended the Coyote Dam tour. 6:12:41 PNZ, ,,,yam 13. CITY MANAGER/CITY CLERK REPOR46:13:51 PM City Manager ;Chambers inquired if there was interest in pursuing the SB1159 Drug/Pharma Ordinande tfnd asked City Council for notification. The City of Ukiah isin communication with Ukiah Valley Fire District and Cal Fire to look at how to make the most of the fire service and cost savings in the valley. 9. PUBLIC HEARINGS.(6:15 PM) a. Denial of Building Code Appeal Filed By Steven Johnson on Behalf of the Mendocino County Savings Bank (Main Street Apartments) 6:15:34 PM Public// earing Opened 6:15 pm Councilmember Crane recused himself from item 9.a at 6:15 pm due to a potential conflict of interest. Director of Planning and Community Development Stump and Building Official Willoughby presented the item. Recommended Action(s): Deny the appeal filed by Steven Johnson. Public speaking in opposition of the item: Johnson Attorney representing Savings Bank. 6:27:34 PM CC 8/4/10 Page 2 of 5 M/S Baldwin/Landis to grant appeal in part and provided the following direction: 1. The applicant is to obtain building permits for each of the remaining 17 units under the 2007 California Building Code. 2. One set of Master Plans will be submitted and plan checked for the project (these plans will include what has been already submitted along with a sheet describing the additional requirements that the Building Official included in the plan check comment letter dated June 9, 2010, minus the bath fan and stairway requirements). 3. One plan check fee will be charged. 4. The fees for each of the permits will be according to the approximated fees included in the ASR minus the plan check foe. Motion carried by the following roll c~ill votes AYES: Councilmembers Landis, Rodin, and Baldwin. NOES: Mayor Thomas. ABSENT: Councilmember Crane. ABSTAIN: None. 7:13:01 PM 7:1L2() PNI Ald/ Public Hearing Closed 7:23 pm L. 10. UNFINISHED BUSINESS 41,1- 1 a. Discussion and Possible.Direction to Staff Regarding Mobile Home Park Rent Stabilization 7:24:56 P\ I City Attorney Rapport, City Manager Chambers, and Councilmember Baldwin presented the iterrr, Recommended Action(s): Discuss mobile home park rent stabilization and provide direction to Staff. Councilmember Rodin left the dais 7:39 pm Councilmember Rodin returned to the dais j 427'pm Public Comment Opened 7:39 pm Public Speaking to the item: JR Rose, Senior Advocate; Roger McConnell, President of the Santa Rasa Manufactured Homeowners Association; Bob (Robert) Fleak, Pegiona( Manager Golden State Manufactured-Home Owners League, Inc. (MMOL) 7:43:34 PM; Jasper Hossfeld 7:48:07 PM; Lori Holaday, Sr. Program ~/(ahager with Area Agency on Aging 7:50:44 PM; David Taxis 7:53: l P%T; Grna Scott 7:57:11 PM; Albert 7:57:50 PM; Jessie Martin, Manor Oaks Mobile Home Park 8:00:48 PM; Bob Jones, Manor Oaks Mobile Home Park; Lisa Hillegas, Legal Services of Northern California; Judy Hatch, Shady Grove Mobile Home Park 8:15:42 PM; and Deon Schori, Manor Oaks Mobile Home Park 8:18:54 PM. Public Comment Closed 8:20 pm MIS Baldwin/Rodin to approve the existing ad hoc committee to work with City Attorney Rapport on the creation of an ordinance based on the best features of the Santa Rosa and other ordinances. 8:48:39 PM 8:58:38 PM Public Comment Opened 8:56 pm Public Speaking to the item: David Vilner. Public Comment Closed 8:58 pm CC 8/4/10 Page 3 of 5 Motion carried by the following roll call vote: AYES: Councilmembers Landis, Rodin, Baldwin, and Mayor Thomas. NOES: Councilmember Crane. ABSENT: None. ABSTAIN: None. Recessed 9:00 pm Reconvened 9:10 pm b. Discussion and Possible Adoption of Marine Life Protection Act Memorandum of Agreement (MOA) 9:10:12 PM City Manager Chambers, Dr. Jeanine Pfeiffer, U.C. Davis, and Jim Martin, Mendocino County Fish and Game Advisory Commission''member and part of the outreach team presented the item. Recommended Action(s): Discuss and approve adoption of Marine Life Protection Act MOA. % j Public Comment Opened 9:40 pm Public Speaking to the item: John McCd6ven, Ukiah Resident and Steve Scalmanini 9:48:38 PM. 0 Public Comment Closed 9:50 pfn M/S Rodin/Crane to approve the Recommended Action with the addition of the change the County of Mendocino requested which are the notice of withdrawal in writing and mutual indemnification. The City Manager and Mayor are to select the representatives. Motion carried by the following ',roll call vote: AYES: Councilmembers Landis, Crane, Rodin.,;, Baldwin, and Mayor Thomas. NOES: None. ABSENT: None. ABSTAIN: None. 9::54:37 Pl\1 C. Report tg~j,Council//Won Status of Annexation of the Brush Street Triangle (Contd. From 7/20) 9:59:06 P-L%I, v, L City Manager Chambers presented the item. Recommended Action(s): Receive report. Report received. 11.- NEW BUSINESS b. Award of Contract for the Electrical Installation of Musco Sports Cluster 10 Green System And Site Utility Infrastructure at Anton Stadium, S pe cificationfo. 10-07 Assistants/sty Manager Sangiacomo presented the item. Recommended Actlon(- . Decline to waive the irregularities in the Sierra bid and award the bid to the text lowest bidder, Ferranti Construction, in the amount of $213,757.00. M/S Landis/Baldwin to approve the Recommended Action. Motion carried by the following roll call vote: AYES: Councilmembers Landis, Crane, Rodin, Baldwin, and Mayor Thomas. NOES: None. ABSENT: None. ABSTAIN: None. 12. COUNCIL REPORTS 10:08:30 PM Councilmember Rodin provided City Council information for the League of California Cities regarding the Redwood Empire Division General Membership Meeting to be held on Friday, August 27, 2010, in Fort Bragg. Rodin also reported the Russian River Water Shed Association had Dennis McFadden as a guest speaker discussing the issues CC 8/4/10 Page 4 of 5 surrounding the diversion of the Eel River. The association is holding a panel discussion on September 23, 2010, in Windsor regarding the topic. Adjourned to closed session and convene as the Ukiah Redevelopment Agency at 10:12 pm. 14. CLOSED SESSION - Closed Session-may be held at any time during the meeting a. Conference with Legal Counsel - Anticipated Litigation Government Code Section 54956.9(b)(1) - Significant exposure to litigation (1 case) No reportable Action. b. Conference with Real Property Negotiators (§54956.8) Property: APN 180-080-57, 58, 59, 62, 63, 64,,65. 66, 67, and 180-110-08, 09, 10 Negotiator: Jane Chambers, City Manager Negotiating Parties: Ukiah Redeveloper Agency and Northwest Atlantic (Costco) Under Negotiation: Price & Terms Not heard. Reconvened in Open Session at 10:50 pm. 15. ADJOURNMENT There being no further business, the meeting adjourned at 10:50 pm. JoAnne M. Currie, .flrk r~ M Ao j.. CC 8/4/10 Page 5 of 5 ITEM NO.: 7a MEETING DATE: August 18, 2010 AGENDA SUMMARY REPORT SUBJECT: REPORT OF DISBURSEMENTS FOR THE MONTH OF JULY 2010 Payments made during the month of July 2010, are summarized on the attached Report of Disbursements. Further detail is supplied on the attached Schedule of Bills, representing the five (5) individual payment cycles within the month. Accounts Payable check numbers: 101744-101925, 102028-102126, 102128-102232, 102335-102437 Accounts Payable Manual check numbers: 101926 Payroll check numbers: 101648-101743, 101927-102027, 102233-102334 Payroll Manual check numbers: 102127 Void check numbers: none This report is submitted in accordance with Ukiah City Code Division 1, Chapter 7, Article 1. Fiscal Impact: Budget Amendment Required ❑ Budgeted FY 10/11 ❑ New Appropriation ❑X Not Applicable F Amount Budgeted Source of Funds (title and Account Number Addit. Appropriation Requested Continued on Page 2 Recommended Action(s): Approve the Report of Disbursements for the month of July 2010 Alternative Council Option(s): N/A Citizens advised: N/A Requested by: City Manager Prepared by: Accounts Payable Specialist II Coordinated with: Finance Director and City Manager Attachments: Reports of Disbursements Approved: a Chambers, City Manager CITY OF UKIAH REPORT OF DISBURSEMENTS REGISTER OF PAYROLL AND DEMAND PAYMENTS FOR THE MONTH OF JULY 2010 Demand Payments approved: Check No. 101744-101807, 1 01 8 0 8-1 0 1 926, 102028-102126, 102128-102232, 102335-102437 FUNDS: 100 General Fund $253,481.29 600 Airport $104,947.71 105 Measure S General Fund $92,976.34 610 Sewer Service Fund 110 Special General Fund $31,336.70 611 Sewer Construction Fund 140 Park Development $96,426.99 612 City/District Sewer $79,001.74 141 Museum Grants 614 Sewer Capital Projects Fund $2,346.13 143 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 $6,952.20 640 San Dist Revolving Fund 201 Asset Seizure (Drug/Alcohol) 641 Sanitation District Special $30,373.08 203 H&S Education 11489 (13)(2)(A1) $215.00 650 Spec San Dist Fund (Camp Imp) $11,780.02 204 Federal Asset Seizure Grants 652 REDIP Sewer Enterprise Fund 205 Sup Law Enforce. Srv. Fund (SLESF $2,500.00 660 Sanitary Disposal Site Fund $2,461.19 206 Community Oriented Policing 661 Landfill Corrective Fund 207 Local Law Enforce. Blk Grant 664 Disposal Closure Reserve 220 Parking Dist. #1 Oper & Maint $2,553.66 670 U.S.W. Bill & Collect $23,174.28 230 Parking Dist. #1 Revenue Fund $212.00 678 Public Safety Dispatch $24,965.60 250 Special Revenue Fund $43,985.94 679 MESA (Mendocino Emergency Srv Auth) 260 Downtown Business Improvement 695 Golf $68,520.12 270 Signalizaton Fund 696 Warehouse/Stores $1,056.05 290 Bridge Fund 697 Billing Enterprise Fund $20,450.68 300 2106 Gas Tax Fund 698 Fixed Asset Fund $13,379.27 301 2107 Gas Tax Fund 699 Special Projects Reserve $9,510.77 303 2105 Gas Tax Fund 800 Electric $795,529.30 310 Special Aviation Fund 805 Street Lighting Fund $12,240.29 315 Airport Capital Improvement 806 Public Benefits Charges $5,952.80 330 Revenue Sharing Fund $178,144.13 820 Water $79,055.21 332 Federal Emerg. Shelter Grant 840 Special Water Fund (Cap Imp) $188,807.84 333 Comm. Development Block Grant 900 Special Deposit Trust $25,209.56 334 EDBG 94-333 Revolving Loan 910 Worker's Comp. Fund $121,693.61 335 Community Dev. Comm. Fund 920 Liability Fund $367,988.00 336 08-HOME-4688 $108,603.00 940 Payroll Posting Fund $194,063.07 340 SB325 Reimbursement Fund 950 General Service (Accts Recv) $811.59 341 S.T.P. $3,826.40 960 Community Redev. Agency $2,529.80 342 Trans-Traffic Congest Relief 962 Redevelopment Housing Fund $448.38 345 Off-System Roads Fund 964 RDA Capital Pass=Through 410 Conference Center Fund $8,957.11 965 Redevelopment Cap Imprv. Fund $75,080.88 550 Lake Mendocino Bond-Int/Red $1,706.25 966 Redevelopment Debt Svc. 555 Lake Mendocino Bond-Reserve 975 Russian River Watershed Assoc 575 Garage $4,801.72 976 Mixing Zone Policy JPA PAYROLL CHECK NUMBERS 101648-101743 DIRECT DEPOSIT NUMBERS 47157-47343 PAYROLL PERIOD 6/13/10-6/26/10 PAYROLL CHECK NUMBERS: 101927-102027 DIRECT DEPOSIT NUMBERS 47344-47529 PAYROLL PERIOD 6/27/10-7/10/10 PAYROLL CHECK NUMBERS: 102127, 102233-102334 DIRECT DEPOSIT NUMBERS 47530-47733 PAYROLL PERIOD: 7/11/10-7/24/10 TOTAL DEMAND PAYMENTS- A/P CHECKS $3,098,055.70 TOTAL DEMAND PAYMENTS-WIRE TRANSFERS' $0.00 TOTAL PAYROLL CHECKS & DIRECT DEPOSIT $1,143,562.63 TOTAL PAYROLL EFT's (TAXES, PERS, VENDORS) $789,583.45 TOTALPAYMENTS VOID CHECK NUMBERS: none $5,031,201.78 CERTIFICATION OF CITY CLERK This register of Payroll and Demand Payments was duly approved by the City Council on City Clerk APPROVAL OF CITY MANAGER I have examined this Register and approve same. CERTIFICATION OF DIRECTOR OF FINANCE I have audited this Register and approve for accuracy and available funds. 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P4r.GrC pD 0En0W H f:g N ow ~lw W H H ~ W W: 4 NN 1:4 PQ P4 QHOWUI U]0 zH U U] z H H wu fx O U zUZN p HN fk N' N'P; m z z 0 H N U O O H U] \ p$U 3w WW W W W H Q zN riS+H ~D WWH O om OH aH --MPMH HH N I MM OM QW Fq NZ N4wgw HN HO WH O O ririr.GH Q z H NOP;Ofk H >U] u p:NWQ Ur W H H H >-i w 40 > 3 3 3 3 3 3 x N t''li H r a w w~ Q O r~ H a a EH I- H 00 r-4 U O 5 4# 1 O a a O w Ln a c~ E O U U 9 N ~ Q ~ Ga P4 EQ PI as x O ww 0 0 r-I ~ w ro ~ z U u] E O U U H W d~ a H z wo a wo 7aH E N P o Om OM QW U~ zQ U~ W ~ 90 W U H O H H ~i a U W rl M O O 0 Q W E E Lo z l0 H Pi O o, a Q ~ P$ ri 0 U W H ~ a E O E E P: O PI W P ITEM NO.: MEETING DATE. City of Wk aft AGENDA SUMMARY REPORT 7b August 18, 2010 SUBJECT: AUTHORIZE CITY MANAGER TO NEGOTIATE AND EXECUTE A REVISED MEMORANDUM OF UNDERSTANDING BETWEEN COUNTY OF MENDOCINO AND CITY OF UKIAH REGARDING LOW GAP PARK AND THE DEVELOPMENT OF UKIAH'S FIRST SKATE PARK. Background & Discussion: In April of 2009, City Council approved the requested authorization for the City Manager to negotiate and execute a Memorandum of Understanding (MOU) with the County of Mendocino in regards to Low Gap Park and the development of the Skate Park. An MOU was drafted and signed by both parties on May 12th of 2009 (Attachment #1). Recently, it came to our attention that the executed document did not adequately address the land tenure requirements that the California State Park Grant Contract requires. The attached revised MOU has incorporated the needed language as approved by our grant project officer with the State and the City Attorney (Attachment #2). Staff recommends that Council authorize the City Manager to negotiate and execute an MOU between the County and the City and implement any further amendments to the agreement to complete this grant project. Fiscal Impact: 1-1 Budgeted FY 08/09 ❑ New Appropriation ❑X Not Applicable F1 Budget Amendment Required Recommended Action(s): Approve the authorization for the City Manager to negotiate and execute a revised Memorandum of Understanding between the City and the County. Alternative Council Option(s): Reject approval of recommended action and provide direction to staff. Citizens advised: n/a Requested by: Skate Park Committee Prepared by: Maya Simerson & Guy Mills, Projects & Grants Coordinated with: Sage Sangiacomo, Assistant City Manager Attachments: #1 Original MOU #2 Revised MOU-draft F' Approved: It Ja er( Chap(bers, City Ma ger 803 AGBFFMFHT # ~ Af achrmc of # I MEMORANDUM OF UNDERSTANDING (Superseding BOS Agreement 07-202) This Memorandum of Understanding (MOU) is entered into on the I Ty_ day of -MAN , 2009 ("Effective Date"), by and between the County of Mendocino (hereinafter referred to as "the County") and the City of Ukiah (hereinafter referred to as "the City"), superseding BOS Agreement No. 07-202: Whereas, on June 26, 1973, the City and the County entered into a 'Cost Sharing Agreement Based on Use' ("Use Agreement", see attached,Exhibit A) for property (APN 001-020-09) adjoining the County Regional Park on Low Gap Road, 'said property being more particularly depicted and described in the attached "Exhibit B" and "Exhibit C"; and Whereas, the area subject to the Use Agreement ("the Parking Area") is a portion of APN 001-020-09; and Whereas, the terms of the Use Agreement granted the County of Mendocino the use of "the Parking Area" for a parking facility for said park, in return for a contribution toward the purchase price of APN 001-020-09, not to exceed $12,500; and Whereas; after the City's purchase of APN 001-020-09, the County developed a portion of APN 001-020-09 ("the Park Use Area"), for a parking facility, picnic tables, playground, tennis courts, volleyball courts, and a Rotary Club memorial grove; and Whereas, since 1973, the County has continually developed, improved, installed, operated and maintained the "Park Use Area", which is more particularly described in the attached "Exhibit D", as a portion of the County Regional Park on Low Gap Road; and Whereas, the City will be constructing a Skate Park and restrooms located within the "Park Use Area", which is more particularly described in the attached "Exhibit E"; and Whereas, the City and the County mutually agree to support one another's applications for future grant funding for Low Gap Park; and Whereas, it is appropriate that the latest changes in the relationship between the City and the County be memorialized with respect to the operation and maintenance of the "Park Use Area". Now, therefore, the following are the terms and conditions of this MOU: 1. The County will continue, at its own expense, to operate, manage, provide oversight of, and maintain the Park Use Area for the uses currently conducted on that property as part of the County Regional Park on Low Gap Road. The County will continue to maintain the playground equipment as required by Proposition 12. The County shall maintain'the current facilities within the newly described "Park Use Area" (Exhibit E ~in a condition that allows for .public use of the facilities for their intended purposes and shall not permit or maintain a dangerous condition of public property thereon. 2. In the event that the County does not operate, manage, provide oversight of, and maintain the facilities in the "Park Use Area" and within the County Regional Park on Low Gap Road in the condition as required by Section 1 of this Agreement, the City shall have the right to provide written notice to the County -of any conditions that violate the requirements of this Section 2. Within 15 days of its receipt of the notice, the County must provide the City with a written response, setting forth remedies which are acceptable to the City. The current conditions of the facilities of the Park Use Area are depicted on the attached "Exhibit F. Nothing in this Agreement shall be construed to require the County to assign an employee to supervise the Park Use Area at all times that it is being used by the public. The County in. Its discretion shall determine how often and by what means it supervises the use of the Park Use Area. 3. In the event that the City does not provide adequate supervision and oversight of the Skate Park, so as to minimize any negative impacts on the County leased portion of the City's property (Park Use Area), the County shall have the right to provide written notice to the City of any conditions that violate the requirements of this Section 3. Within 15 days of its receipt of the notice, the City must provide the County with a written response, setting forth remedies which are acceptable to the County. Nothing in this Agreement shall be construed to require the City to assign an employee to supervise the Skate Park at all times that it is being used by the public. The City in its discretion shall determine how often and by what means it supervises the use of the Skate Park. 4. The "Park Use Area" shall no longer include the City owned property wherein the City plans to build the Skate Park, as depicted in Exhibit E, and the County is released from maintaining the Skate Park. 5. The City shall provide restroom facilities on the City's property near the location of the Skate Park and shall maintain said restroom facilities, which shall be available for the use by users of the Skate Park and the Park Use Area. If the restrooms. are damaged at anytime by minor vandalism (an amount not to exceed $2,000), the City and the County shall share equally the cost to repair such damage. If the restrooms are damaged at any time by major vandalism (an amount over $2,000) the City shall be solely responsible for the costs associated with the repairs. If at any time prior to December 31, 2012, the State of California releases the County's Proposition 40 per capita funding, the . County, shall contribute, not to exceed, $50,000 of said funds to pay or reimburse the cost of construction of the restrooms. Said $50,000 from the County is contingent upon approval by the State for said project. 6. The City shall provide parking lot enhancements to include combining into a single parking lot the two existing parking lots and paving the lots in accordance with standards mutually agreeable to the parties. Once the lots have been improved, as provided herein, the parties shall share equally the costs to maintain the parking lot infrastructure. Routine daily maintenance of the parking lot shall be the responsibility of the City. 7. City and County will comply with all federal, state, and local laws and ordinances as may be applicable to the carrying out this MOU. 8. The Term of the MOU shall commence on M i "a, , 2009 shall continue until t-\ k y Q_ , 2029. This MOU may be a ctended on its same terms and conditions, for a period not to exceed twenty (20) years, upon written agreement between the County and City. 9. The County shall indemnify, defend and hold harmless the City, its officers, officials, employees and volunteers from and against all claims, damages, losses and expenses, including the fees of attorneys, investigators, experts, expert witnesses and consultants, arising out of the County's performance under this Memorandum of Understanding, and the performance thereunder of its contractors, subcontractors, officers, agents and employees or anyone directly or indirectly employed by any of them or anyone for whose acts any of them may be liable, except. where the claim, damage, loss or expense is caused by active, sole negligence, or willful misconduct of the City. County shall name City as an additional insured under its insurance coverage, whether by an insurance company or a joint powers agency. County shall furnish City with a policy endorsement or other satisfactory evidence that such coverage is in effect and that City is named as an additional insured. 10. The City shall indemnify, defend and hold harmless the County, its officers, officials, employees and volunteers from and against -all claims, damages, losses and expenses, including the fees of attorneys, investigators, experts, expert witnesses and consultants, arising out of the City's performance under this Memorandum of Understanding, and the performance thereunder of its contractors, subcontractors, officers, agents and employees or anyone directly or indirectly employed by any of them or anyone for whose acts any of them may be liable, except where the claim, damage, loss or expense is caused by active, sole negligence, or willful misconduct of the County. City shall name County as an additional insured under its insurance coverage, whether by an insurance company or a joint powers agency. City shall furnish County with a policy endorsement or other satisfactory evidence that such coverage is in effect and that County is named as an additional insured. 11. County and City each bind themselves, their partners, successors, executors, and administrators and assigns to the other party to this MOU, and to the partners, successors, executors, administrators and assigns of such other party in respect to all covenants of this Agreement; and 12. Except as above, neither County nor City shall assign, sublet, or transfer this interest in this MOU without the written consent of the other. 13. This MOU may be terminated by either party with a 60 day written notification to the other party. This MOU may be amended by written consent of both parties. Either party shall have the right to terminate the MOU upon the failure of the other party to adhere to the :conditions of the MOU. Notice of intent to terminate shall be in writing, and shall provide that the party not in compliance shall have the right to come into compliance within 60 days of receiving such written notification. 14. If any section, subsection, subdivision, paragraph, sentence, clause, or phrase of this MOU or any part thereof is, for any reason, held to illegal, such decision shall not affect the validity of the remaining portions of this Agreement or any part thereof. 15. No waiver, alteration, or modification of any of the provisions of this MOU shall be binding unless in writing and signed by a duly authorized representative of both parties to this Agreement. 16. Whenever notice is permitted or required under the terms of this Agreement, it shall be deemed given when received, if delivered personally, by fax or by overnight courier, and 48 hours after deposit in the United States Mail with proper first class. postage affixed thereto. Notices shall be sent to the following address or fax number, unless notice of an address change is given as provided herein: CITY OF UKIAH C/O City Manager Ukiah Civic Center 300 Seminary Ave. Ukiah, CA. 95482 Fax: 463-6204 COUNTY OF MENDOCINO C/O Parks Division 841 Low Gap Road Ukiah, CA. 95482 Fax: 463-4673 IN WITNESS WHEREOF, the parties hereto have executed these presents in duplicate original the day and year first above written. CITY OF UKIAH CAVVor* , q-pz-oj Date COUNTY OF MEND CIN Chair, Board q Supervisors MAY 12 2009 Date ATTEST: J r~ ity Cier APPROVED AS TO FOR hey I hereby certify that according to the provisions of Government Code Sections 25103, delivery of this document has been made. KRISTI FURMAN C k the•Boar By; . DEPUN ATTEST: KM Fumian, Clerkafthe Board Mendocino County Board of Supervism Deputy APPROVED AS TO FORM: JEA INE B. ADEL, Coun Cou el INSURANCE REQUIREMENTS: KRISTIN McMENOMEY, Director General Services Agency a By RISK MANAGER t..rtt ttt,st t COSt STIOING ;AQRRE~ .jPN B~SEA ON I1SS: 2 . ` 1yP1•EREAS ~ tike c i:y or- U e ali 'has negot:i'al~ a Elie; pu:xe}i.ase cif a 'dlr4 l o.f p:rb. orty tL601ning the propo;s6d Couri.tty Reg~ehal Pa :lC. 5 04 L*otJ 0:e0 :AoM,. sricl G WFTIj12 :5.,: tk o Clpuoy ox Mendnol na has .anci'i,'oatecl that, "in rst~tt, n :oz the use a a Pot. t' ¢n of the: propre.rty fo-r a .p.ar3c>~}g facx. xly Ior ai.d park, the: 00opy off' Wndoc n:o wo.u,I.d Co it~'a,'but;e R e.;ha,X Ot fhe ;:Aria ptxtGha•Se:.prace:., Ukift'e 'riot 'to .exco:e.d: liat t]i.a paxt cs. lieret•ti !`apac a t;o Ckh.e i o~ iaw. ng as' ur:ances . ? . That the coo. Y o£ Reni!94'no;. tugs cry C~13 ~o:i•iti e tz.i.i e.9 txzbvim one jia] q the 3,41.1:4 pur.clxase prxc'e, ssxt~ 1'7 f% uro' iio'i ;to. exceed. $1.~500'.•D:O,, S.Ai.4 "C'ontx3b.ut:14 on to.. be! -made tri~.lj::j u days fxom the cibs~n~ o£ :escxnw... 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C:Ou$ity 47 fbr pxk pax: n puxposes pr~cix to 2-0z5a the air agxoes 2$` t.a ivantkiurse: tho Cozixityis &hd44g pa taeapat~o up 'to ' x 5:dti: pQ to: pha *c o y-, WO IN IVZTN SAS :t ~1E1tE0p>, this A-40:6 Olt lies been `e'xecute4• Uy: 31 Lout y tli s o.._:.y, o E Gat4 jI37:1, and bar 0 %.ty tiffs. j .p:iinEy ' ; fErirxoc n'o 'City,. or t: 5:•t3'te q£ ta,td rs G ]i pf>n a alai orr~i Munxcxpa7 J t~laya:r oc'zrl`o; Cauti:y Now. • s 8 CTIOT.A N IzCdF~;R~SO~t, Cbtil3ity a~ ~ Bcsa~ct ia~ .Sxaps sox' Czty ulov A0' $y, ~7 • 7.8 l 20. 2L e i ~ I. 3.0 i r !a 1:. 'geeapalNa'..k~.0u.~#at~3Ar [ECDOCi:U..A':{{EJttl'3.i':Q(' , ' wp91t1!M XdteSlgtiutttr conlrn,±#i'. :!~tH4K3CiNC,cg6N►T`~47,SIQ[';, ANO Y/1,1.SN'R~.'.,COhyLO",MFII. T(7 ~ ~ . ~mhs CUO.o uJ:iat: 4~ 10 J aN try. K1!¢~R.t~ y7.Q:~ itl( vl r ~Yxt~t ~1 ~4Sj Ff.r•. I 'AVl`*"'~,}~(L ,y7l~ . -.'flttc.f)ttactNv &e6ti7_ efuWNo«, ,rte ,T+l r'yr~C q I?± :iP 9::4-pP..vrT.Hts, wINC KOF3 ht GQtib.~tirs ui34.W-, MalL',T4t'sYlYkHiNMi~o. r Guixn~esf ~ti M avm cldz' ~a~.` ' om.rtlory l2anefpr tpu { ~1w7<.9 {0' oiupUtad 8il full vgllto•of 1iCOporl'y cnY~vn~ndf ar A;46Mk'.ti Q .mpued on ful( volgq 1tu: {fgox 0.pil p~alnitirAnrgy cued rwhgining {Ueetwn q[ tfpte pr enle t~rarc ~ + ~ [n.tuh y~ J!Ff~~i~i1+ .,R.Af Q{Vi(nMlg~ u~?., qr~n h}, . . It~tbttx`x: Ott' • :Wlui'rCgiY}i~~k!'dwFAryb: io.i - . pAlt;i!A4 6I2 C tY b;. Qlut[tLE,S::SFl3¢qu ol9 -Max..>:: WAhl"10; .ts,{a: 'atGp}ps, >~r GQFQRTpl gild S(tARtiN f UFkfR'!t'Fl, hid vrl ani9 Ei Mk AWt+k7s. > ri g35L 3±N ,1sAt~TtC6,.. hose rr fes •.t7,t4A1V~'~to.. ~!(t~ axmx fir: Uf+.IAffr; a Mt±n~~.kaS ~ozpax'~~3.ott{; i611~1iatS4('cYstluoip lrt the. r.: 4'o'uerpot' Merii8di:3,;nti rSfu{eriIC6lilopii6(dacifticdas:folluuns: $EGXHNING a iii o oRr ~lr~ Tfo Chexl~ l~ h; QE toh Q, Yb} ~lro Rariahb r el3sbaTt ilteiea~ Soufih 77, 3q 4e 1, 61Y.Cs Es t t? am tih~ pr hFrea~, aoknec, 1ra~et,Ai909.d98ee~etHericeSoutili 39~ igr!Ae7Yfr:8~~a ~heiiae~&4~ltJi 39° 55' t t F' is 4.a- oq' :rias•t a 17:1 u :vaitther~y .:..hi M. , S....~.e. rin~ng, ;YC PT NG there£ om Atr> io lark;; 20 ee 3n ~?3E11:1~ lyiitN alcsri . $irr] o~n~ irQ. ~.a~.rt riaxRherl~±: 7Cinti aii= Lai 8►. anr5 cont~a.nS:ng ~Ptar. •sa3G acr».r, oe Cr °lesi.. r .w„c~c:,s+tr~p hrA►nli, ~ ;~•.~fer~•-~~ti~e~+n*~i' . di(!udi Y[Al pro Po ! r,:~ H.+'N]ifK;(yvv ~ aL t ~Fy~ . l • ~61v.Ca!"P!VU!!!~.{:1?ni. iwv. I;::tt73.. ' ,i!'(h~Y..dM'11:F?•Y~f,+iV,i~v~..~r,'•'1!F.F± ! r I e, ~ MXIL~~'~A7ie'YA7Ei!t.C1~7sAD.41RCet~Pq~,gov.C~ ~ ~ EXHIRiT B: ~ridlaa,~a►r~ Cgtuitiy . 1 F t 1 i Rj .b t n C ai epre':OF'ACWTAM3 .::Rf t s ia.; eH( +rlNdl.lh i l'I rtiieel pion eilj? y eg ye grf'6y. iN n e ` d rt~'E~ !i~'OSdril: 'rl6tbd , ~ ~ y ((!w ~ ~y tnmCl~e~:;.~3.ltl~ini[i~zi;yaUd 1~Sar~iH.,8~3inuri:, gt u~. d^. yl!~ tu ~ .+l ~r ~lt•:. ~e •,yr ^ t + y. , ,r h i~ . ti:.b +M~:ne~ InArl!(1+i11~17I1':i1/~ + i?'rnhY. iiir,'r n4 h+t i'a unirn„.r; lll~~i: tiflehUpJft So `y}3;NnAt+s enr;' 9 b • ~ re p )till,++n.°.J l~ia rri, rY 'T+.cq+ Pfl~+ b(`ilk+Qh t•~G~!Cd: il F i ~ p rprualr , r T~. , nritl ~1 o'91.Pr~^`a ~TgpSii4ii' la;tc~`tiidhllon, iHnroofr by ~i<i?sda?1y tFIU1?~ci1F4'd ! . ' + b(fltpt:. • Cf c ~1 11114 • t ' 9001 OR PAOMA. Love Gap County Park EXHIBIT D Being a;portton of that hncf of l:~nd3. Sh%inmitt; ~xoro lh and awles tli6 C t~► Q Ukiah, 10 ~ceoi~ded 7uly 25, .1973. in (Official Records ofMendoctnc, Coltatys Book X32, Page X93; sa~tci pot:tidnleing trt±oo partcttlaxly described as: fcllovirs: All that portion. of Lot $ : ..of tki Yukayo I2anolio, tying wifiluin #lxe.t✓ouiity a 1l eiidoClrio,. Stmo. o£ altf'oitia, :being: more particularly desad%becl as follows: orYUeiigt s;p'oit'on tli~e riortferty:lxtio.o`Lot.8,:ef the Yokayo `Rancho; said port lying x'711, 67319 feet from the no#.hwest:carrter b d:Lat 8; thonoe 1esy i said p~l~i~ q~'coi~ii~oiic,errieiliX ~ GO°1'00," ~V, 2G 84 feet tc~ tte.True Ponzt:of Begiuing;'tl~etlc leaving,:.saidtrueDoint of6ggin'ittg S GQ°,19'00" 1?y, 1 ;4 feet; tl~oii .e 3$°SS'00" B, 409 A'fee tliewtoe 819°2S'00 ` E; 71 34• t'eet thence N 35°2ti'QO" , 2z 3 . t`eot; tli z~G.o N 47°i3'3$" W, 71.04 feet, tl enoe 14 ° 01``'W, t 10.16 feet thenee'N .18 30`00" E, t 24 07 feefi; thenee N 71930'00" W; 168.,1'4 Poet to the U P* t of Uogi Ott 4 ft.Wnin 2..26.eres, more<.o1 Less: t real lsi:opor`'escritoii..las Ue'en pejared liy: rile or under my :d`reotan `i. confoirnuioe w.'itln tllo: ~'xgfcssozx~l Lana Situeyoir's' Aet. ~~r:.,' ~~-rte' Arthur° C~V: `olvtzc,;'TS11; Lxp: 373:~0$ C.otit%1~! 5ui~veyar. :;~'i~ GY 5, 2:pa ~ate~~"51:r.a8 J r r • 7 } l tax - w'w R.' . 4),Ds- I 40. ILI .I- Al p.. V c ivW' ~orl. ;Lai 8 • Y?l<9ya:'J'anl%o . 444;0 AAW W. CMVlh, LS 6111NO. V r•++~+?^C~}-ate Lp,% pAO OAR,K GOU~iTY PARC;~~. . .180 Ac. Aifachment # a. MEMORANDUM OF UNDERSTANDING (Superseding BOS Agreement 07-202) This Memorandum of Understanding (MOU) is entered into on the day of 2010 ("Effective Date"), by and between the County of Mendocino (hereinafter referred to as "the County") and the City of Ukiah (hereinafter referred to as "the City"), superseding BOS Agreement No. 07-202: WHEREAS: 1. On June 26, 1973, the City and the County entered into a `Cost Sharing Agreement Based on Use' ("Use Agreement", see attached Exhibit A) for property (APN 001-020-09) adjoining the County Regional Park on Low Gap Road, said property being more particularly depicted and described in the attached "Exhibit B" and "Exhibit C"; and 2. The area subject to the Use Agreement ("the Parking Area") is a portion of APN 001-020-09; and 3. The terms of the Use Agreement granted the County of Mendocino the use of "the Parking Area" for a parking facility for said park, in return for a contribution toward the purchase price of APN 001-020-09, not to exceed $12,500; and 4. After the City's purchase of APN 001-020-09, the County developed a portion of APN 001-020-09 ("the Park Use Area"), for a parking facility, picnic tables, playground, tennis courts, volleyball courts, and a Rotary Club memorial grove; and 5. Since 1973, the County has continually developed, improved, installed, operated and maintained the "Park Use Area", which is more particularly described in the attached "Exhibit D", as a portion of the County Regional Park on Low Gap Road; and 6. The City will be constructing a Skate Park and restrooms located within the "Park Use Area", which is more particularly described in the attached "Exhibit E"; and 7. The City has received a grant from in the amount of $ ("the Grant"), which contains conditions with which the City is required to comply; and 8. Under the terms of the Grant, the City is required to exercise "site control" over the property improved with grant funds and to keep the improved facilities available for public recreation purposes for not less than twenty (20) years; and 9. The terms of the Use Agreement give the County the use of the Ukiah Skate Park for property development; and 10. After the County's contribution toward development of the Ukiah Skate Park, the City will continue to dedicate the Ukiah Skate Park for public and community use; and 11. Under the terms of the Grant, the City must have the authority to oversee and approve the County's use of the improved property in order to comply with the City's obligations under the terms of the Grant; and 12. For the foregoing reasons, the City and County desire to set forth herein there rights and obligations concerning the operation and maintenance of the Ukiah Skate Park; and 13. The City and the County mutually agree to support one another's applications for future grant funding for Low Gap Park; Now, therefore, the following are the terms and conditions of this MOU: 1. The County will continue, at its own expense, to operate, manage, provide oversight of, and maintain the Park Use Area for the uses currently conducted on that property, described in No. 4, above, as part of the County Regional Park on Low Gap Road. The County will continue to maintain the playground equipment as required by Proposition 12. The County shall use reasonable efforts to maintain the current facilities within the newly described "Park Use Area" (Exhibit E -in a condition that allows for public use of the facilities for their intended purposes and to not permit or maintain a dangerous condition of public property thereon. 2. In the event that the County does not operate, manage, provide oversight of, and maintain the facilities in the "Park Use Area" and within the County Regional Park on Low Gap Road in the condition as required by Section 1 of this Agreement, the City shall have the right to provide written notice to the County of any conditions that violate the requirements of this Section 2. Within 15 days of its receipt of the notice, the County, through its Parks Division, must provide the City Manager with a written response, setting forth remedies which are acceptable to the City Manager. The current conditions of the facilities of the Park 'Use Area are depicted on the attached "Exhibit E". Nothing in this Agreement shall be construed to require the County to assign an employee to supervise the Park Use Area at all times that it is being used by the public. The County in its discretion shall determine how often and by what means it supervises the use of the Park Use Area. 3. In the event that the City does not provide adequate supervision and oversight of the Skate Park, so as to minimize any negative impacts on the County leased portion of the City's property (Park Use Area), the County, through its Parks Division, shall have the right to provide written notice to the City of any conditions that violate the requirements of this Section 3. Within 15 days of its receipt of the notice, the City Manager must provide the County with a written response, setting forth remedies which are acceptable to the County Parks Division. Nothing in this Agreement shall be construed to require the City to assign an employee to supervise the Skate Park at all times that it is being used by the public. The City in its discretion shall determine how often and by what means it supervises the use of the Skate Park. 4. The City shall at its own expense operate, manage, provide oversight of, and maintain the Ukiah Skate Park for public recreation purposes. The City shall use reasonable efforts to maintain the park in a condition that allows for public use for their intended purposes and to not permit or maintain a dangerous condition thereon. Notwithstanding the primary obligation of the City to keep the Ukiah Skate Park available for public recreational purposes and in a condition suitable for such purposes, for a period of twenty (20) years from the completion of the work funded by the Grant, the County hereby grants the City authority to manage, direct, superintend, restrict, regulate, govern, administer, or oversee the property located at 1041 Low Gap Road, Ukiah, California, and known as the Ukiah Skate Park for the public recreational use of said property. 5. In the event that the City does not operate, manage, provide oversight of, and maintain the Ukiah Skate Park in its an operational condition as of the Effective Date and in a condition as required by Section 4 of this Agreement, the County shall have the right to provide written notice to the City of any conditions that violate the requirements of this Section. 6. Within 15 days of its receipt of the notice, the City Manager must provide the County Parks Division with a written response, setting forth remedies which are acceptable to the County Parks Division. If the City closes the Skate Park, it shall accept full responsibility for any liabilities of the County arising under the terms of the Grant agreement, if any, and shall fully indemnify and defend the County from and against any such liability. 7. The "Park Use Area" shall no longer include the City owned property upon which the City plans to build the Skate Park, as depicted in Exhibit E, and the County is released from maintaining the portion of the Park Use Area to occupied by the Skate Park. 8. If sufficient Grant or other funding is available, the City shall provide restroom facilities on the City's property near the location of the Skate Park and shall maintain said restroom facilities, which shall be available for the use by users of the Skate Park and the Park Use Area. If the restrooms are damaged in any single incident by minor vandalism (an amount not to exceed $2,000), the City and the County shall share equally the cost to repair such damage. If the restrooms are damaged in any single incident by major vandalism (an amount over $2,000) the City shall be solely responsible for the costs associated with the repairs in excess of $2,000. If at any time prior to December 31, 2012, the State December 31, 2012, the State of California releases the County's Proposition 40 per capita funding, the County shall contribute, not to exceed, $70,000 of said funds to pay or reimburse the cost of construction of the restrooms. Said $70,000 from the County is contingent upon approval by the State for said project. 9. The City shall provide parking lot enhancements to include combining into a single parking lot the two existing parking lots and paving the lots in accordance with standards mutually agreeable to the parties. Once the lots have been improved, as provided herein, the parties shall share equally the costs to maintain the parking lot infrastructure. Routine daily maintenance of the parking lot shall be the responsibility of the City. 10. City and County will comply with all federal, state, and local laws and ordinances as may be applicable to the carrying out this MOU. 11. The Term of the MOU shall commence on , 2009 shall continue until , 2029. This MOU may be extended on its same terms and conditions, for a period not to exceed twenty (20) years, upon written agreement between the County and City. 12. The County shall indemnify, defend and hold harmless the City, its officers, officials, employees and volunteers from and against all claims, damages, losses and expenses, including the fees of attorneys, investigators, experts, expert witnesses and consultants, arising out of the County's performance under this Memorandum of Understanding, and the performance thereunder of its contractors, subcontractors, officers, agents and employees or anyone directly or indirectly employed by any of them or anyone for whose acts any of them may be liable, except where the claim, damage, loss or expense is caused by active, sole negligence, or willful misconduct of the City. County shall name City as an additional insured under its insurance coverage, whether by an insurance company or a joint powers agency. County shall furnish City with a policy endorsement or other satisfactory evidence that such coverage is in effect and that City is named as an additional insured. 13. The City shall indemnify, defend and hold harmless the County, its officers, officials, employees and volunteers from and against all claims, damages, losses and expenses, including the fees of attorneys, investigators, experts, expert witnesses and consultants, arising out of the City's performance under this Memorandum of Understanding, and the performance thereunder of its contractors, subcontractors, officers, agents and employees or anyone directly or indirectly employed by any of them or anyone for whose acts any of them may be liable, except where the claim, damage, loss or expense is caused by active, sole negligence, or willful misconduct of the County. City shall name County as an additional insured under its insurance coverage, whether by an insurance company or a joint powers agency. City shall furnish County with a policy endorsement or other satisfactory evidence that such coverage is in effect and that County is named as an additional insured. 14. County and City each bind themselves, their partners, successors, executors, and administrators and assigns to the other party to this MOU, and to the partners, successors, executors, administrators and assigns of such other party in respect to all covenants of this Agreement; and 15. Except as above, neither County nor City shall assign, sublet, or transfer this interest in this MOU without the written consent of the other. 16. This MOU may be terminated by either party with a 60 day written notification to the other party. This MOU may be amended by written consent of both parties. Either party shall have the right to terminate the MOU upon the failure of the other party to adhere to the conditions of the MOU. Notice of intent to terminate shall be in writing, and shall provide that the party not in compliance shall have the right to come into compliance within 60 days of receiving such written notification. 17. If any section, subsection, subdivision, paragraph, sentence, clause, or phrase of this MOU or any part thereof is, for any reason, held to illegal, such decision shall not affect the validity of the remaining portions of this Agreement or any part thereof. 18. No waiver, alteration, or modification of any of the provisions of this MOU shall be binding unless in writing and signed by a duly authorized representative of both parties to this Agreement. 19. Whenever notice is permitted or required under the terms of this Agreement, it shall be deemed given when received, if delivered personally, by fax or by overnight courier, and 48 hours after deposit in the United States Mail with proper first class postage affixed thereto. Notices shall be sent to the following address or fax number, unless notice of an address change is given as provided herein. CITY OF UKIAH C/O City Manager Ukiah Civic Center 300 Seminary Ave. Ukiah, CA. 95482 Fax: 463-6204 COUNTY OF MENDOCINO C/O Parks Division 841 Low Gap Road Ukiah, CA. 95482 Fax: 463-4673 IN WITNESS WHEREOF, the parties hereto have executed these presents in duplicate original the day and year first above written. CITY OF UKIAH City Manager Date ATTEST: City Clerk APPROVED AS TO FORM: City Attorney INSURANCE REQUIREMENTS: KRISTIN McMENOMEY, Director General Services Agency COUNTY OF MENDOCINO By Chair, Board of Supervisors RISK MANAGER Date ATTEST: Clerk of the Board APPROVED AS TO FORM: JEANINE B. NADEL, County Counsel ITEM NO.: 7c MEETING DATE: August 18, 2010 AGENDA SUMMARY REPORT SUBJECT: APPROVE AMENDMENT TO PROFESSIONAL SERVICES AGREEMENT WITH GREEN VALLEY CONSULTING ENGINEERS IN AN AMOUNT NOT TO EXCEED $22,995 FOR ADDITIONAL DESIGN WORK RELATED TO THE PREPARATION OF BID DOCUMENTS FOR THE GOBBI STREET REHABILITATION PROJECT Background: This project has been included in the FY 2010-2011 budget adopted by the City Council. Discussion: On November 2, 2007 City executed a professional services agreement with Green Valley Consulting Engineers for the preparation of bid documents for waterline improvements at the State Street and Gobbi Street intersection. Subsequently, the City approved amendments to the professional services agreement with Green Valley Consulting Engineers to design pavement rehabilitation of Gobbi Street from its intersection with Main Street through the intersection with State Street. With construction of the new Rite Aid store, Gobbi Street west of State Street was widened to match the existing right of way and to improve the alignment with Gobbi Street east of State Street. Gobbi Street west of State Street was repaved and restriped. There is additional width for a right turn lane along the south side of Gobbi Street west of State Street. However, the curb return at the southwest corner of State Street and Gobbi Street will not accommodate truck turning movements. Staff requested a proposal from Green Valley Consulting Engineers to prepare plans and specifications for a larger radius curb return along with striping modifications on Gobbi Street to provide a designated right turn lane for eastbound traffic. The larger radius curb return will involve modification of the traffic signal, relocation of the storm drain inlet, and preparation of legal documents for minor right of way acquisition at the corner. Design and construction of the street improvements for this project is budgeted in the City's Surface Transportation Program d(1) fund. Staff recommends approval of the amendment (Attachment 1) to the professional services agreement with Green Valley Consulting Engineers. Fiscal Impact: X I Budgeted FY 10/11 New Appropriation Not Applicable 1-1 Budget Amendment Required F1 Amount Budgeted Source of Funds (title and Account Number Addtl. Appropriation Requested $350,000 STP d(1) Funds 341.9656.930.000 Recommended Action(s): Approve amendment to the professional services agreement with Green Valley Consulting Engineers in an amount not to exceed $22,995 for additional design work related to the preparation of bid documents for the Gobbi Street Rehabilitation Project. Alternative Council Option(s): N/A Citizens advised: N/A Requested by: Tim Eriksen, Director of Public Works / City Engineer Prepared by: Rick Seanor, Deputy Director of Public Works Q Coordinated with: Jane Chambers, City Manager Attachments: 1. Amendment No. 3. Approved: Jade Ch nbers, City Manag Attachment # 1 CITY OF UKIAH AMENDMENT NO. 3 TO AGREEMENT FOR PROFESSIONAL CONSULTING SERVICES DATED NOVEMBER 2, 2007 TERMS AND CONDITIONS All terms and conditions of the Agreement for Professional Consulting Services dated November 2, 2007; the first amendment dated October 7, 2008; and the second amendment dated October 14, 2008; shall remain in force and effect except as modified by this third amendment. AUTHORIZATION Upon execution of this amendment, service provider is authorized to provide the service described under the Scope of Additional Work identified in this Amendment No. 3. SCOPE OF ADDITIONAL WORK Work authorized by this amendment shall include that work described in the June 15, 2010 letter proposal from Green Valley Consulting Engineers. A copy of said letter is included in this third amendment. COMPENSATION Compensation for the performance of the additional work shall be made on a time and expense basis at Consultant's customary fees. Expenses shall not exceed a maximum total cost of $22,995. GREEN VALLEY CONSULTING ENGINEERS BY: BY: ELIZABETH ELLIS Principal CITY OF UKIAH JANE CHAMBERS City Manager DATE DATE Amendment No. 3 to Agreement for Professional Consulting Services GreenValle CONSULTING ENGINEERSv Restoring Yesterday Creating Tomorrow June 15, 2010 Mr. Rick Seanor, P.E. Deputy Director of Public Works City of Ukiah Public Works Dept. 300 Seminary Avenue Ukiah, CA 95482 municipal engineering civil engineering construction management landscape architecture land surveying Re: Additional Services Associated with Curb Radius Improvements at SW Corner of Gobbi & State Streets - Amendment #3 Dear Rick: Per your request and previous phone conversations, we have enclosed a brief scope of services and associated fee for the curb return improvements associated with the SW corner of Gobbi and State Streets. It is our understanding that the City wishes to expand the scope of services that were performed under contract amendment #2, to include a much larger radius than what was proposed. We have increased the radius from approximately 12' to the current 25', which will facilitate larger trucks in the turning movements. Our Understanding We understand that the City would like to increase the radius of the referenced intersection at the SW corner beyond what was originally agreed upon in order to accommodate truck turning movements, as feasible. The increased radius will require the modification of the existing traffic signal, storm drain and catch basin relocation, extensive concrete reconstruction, and the preparation of legal documents for right of way acquisition. The proposed work will be coordinated with our existing project and included in the set of plans that have been prepared for advertisement and construction this summer. The final improvements to the SW corner will result in a dedicated right turn lane with a stacking length as feasible within the physical constraints of the corner. We will work with WTrans Traffic Consultants for the preparation of the signal modification plans and have included their scope of work and associated fee below. 75% Design and Improvement Plans We will submit revised 75% design documents that will incorporate the proposed additions above, including: the structural section details for the widened curb return, horizontal limits proposed for the curb return, turn lane and the pavement reconstruction improvements, and the detailed grading plan for ramp conforms, striping and signing, and conceptual signal modification plans (electric plan, details and schedules, signal interconnection system modifications). The plan sheet will indicate existing right-of-way lines and any pertinent easements, topographic features, and existing utility systems. Previous project specifications that were submitted for the water main and pavement reconstruction improvements will be amended for the additional work to allow for subsequent advertising. Upon approval of our preliminary layout, we will prepare the necessary R sheet and legal description to allow the City to negotiate for the needed right of way. 335 Tesconi Circle, Santa Rosa, California 95401 • web www.gvalley.com • tel 707.579.0388 e fax 707.579.3877 /000"~~~~ Greenmunicipal Valle engineering civil engineering CONSULTING ENGINEERS construction management landscape architecture Restoring Yesterday. . . Creating Tomorrow land surveying An updated cost estimate will also be submitted to allow for budgeting purposes. 100% Design and Improvement Plans A 100% submittal of the plans will incorporate all comments from the 75% review, as well as results of utility company reviews of the plans. The civil component will include final grading details, storm drain relocations, striping and signing and any miscellaneous details will be included. The electrical plans will include existing and proposed conduits, pull boxes, poles, vehicle and pedestrian heads, detector loops, controller and service cabinets, luminaires, conductor and equipment schedules, preemption equipment.and pertinent notes, including those necessary to ensure that Contractor maintain an operation signal during construction. Construction documents will be prepared in accordance with the City of Ukiah Design and Construction Standards. The final cost estimate will updated to incorporate current bid results. Fee for Amendment #3 $22,995 Thank you again for the opportunity to submit a proposal for our services. Should you accept our proposed scope of services and associated fee, Green Valley can begin work upon authorization to proceed. We look forward to hearing from you and please do not hesitate to contact us with any questions you may have. Sincerely, g Liz Ellis, P.E. Principal 335 Tesconi Circle, Santa Rosa, California 95401 * web www.gvalley.coni • tel 707.579.0388 • fax 707.579.3877 City (?f'Z-1ki0fi ITEM NO.: 7d MEETING DATE: AGENDA SUMMARY REPORT August 18, 2010 SUBJECT: UPDATE REPORT REGARDING STATUS OF WATER EMERGENCY CONDITIONS NECESSITATING EMERGENCY RESOLUTION TO EXPEDITE CONSTRUCTION OF OAK MANOR DRIVE 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 Oak Manor Drive in Oak Manor Park to the east of the tennis courts. 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 formal 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 formal 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 number 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, 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. Gobbi Well The date of the bid opening for construction of the Gobbi Street well head and pump house was June 18, 2009. The contractor mobilized their equipment on site on July 13. Substantial completion of this project Continued on Paae 2 Recommended Action(s): Receive the report. Alternative Council Option(s): Reject recommended action(s) and provide staff with alternate direction. Citizens advised: n/a Requested by: Tim Eriksen, Director of Public Works / City Engineer Prepared by: Rick Seanor, Deputy Director of Public Works R Coordinated with: Jane Chambers, City Manager Attachments: None. Approved: S r--~- r ne C mbers, City Manager Subject: Update Report Regarding Status of Water Emergency Conditions Necessitating Emergency Resolution to Expedite Construction of Oak Manor Drive Water Well Meeting Date: August 18, 2010 Page 2 of 2 was November 10th. The time required from the bid opening to substantial completion of the Gobbi Street well head and pump house was approximately five months. Oak Manor Well In the December 16, 2009 Agenda Summary Report, Item 7d, a best case schedule was developed assuming the Oak Manor well head and pump house bid in December 2009 and construction started no later than January. With this schedule it was possible the Oak Manor well (Well #8) would have been completed in May 2010. This completion date assumed a shortened bid period and no delays due to weather or other circumstances. Bids were issued on January 8, 2010. The revised schedule includes the January bid date and a 30 day noticing period with bids due February 9th. The lowest, qualifying bid was submitted by Wipf Construction in the amount of $377,000 and was approved by Council on February 17th. Construction began April 26, 2010. The pump house at Oak Manor well #8 is near completion. The electrical equipment for running the pump is in place and DPW staff is coordinating with the City's electrical department for power. Staff anticipates that this well will be in operation within the next two months. Aeft ITEM NO.: PTIN MEETING DATE: City aj,"Z-1kiah AGENDA SUMMARY REPORT August 18, 2010 SUBJECT: UPDATE REPORT ON LOCAL EMERGENCY DECLARATION REGARDING DROUGHT AND WATER SHORTAGE STATUS Summary: In drought conditions, the City may declare a local emergency under the California Emergency Services Act ("ESA"). In addition, the City Council under the Ukiah City Code may declare a Water Shortage Emergency as a Stage I, II or III emergency. At its meeting of April 15, 2009, the City Council adopted a RESOLUTION DECLARING A LOCAL EMERGENCY UNDER THE STATE EMERGENCY SERVICES ACT AND A STAGE I WATER SHORTAGE EMERGENCY UNDER SECTION 3602 THE UKIAH CITY CODE. (Attachment #1). The resolution contains recitals setting forth the drought conditions and the response to those conditions by the State, Mendocino County, the Sonoma County Water Agency and the State Water Resources Control Board which the resolution seeks to address. Please refer to those recitals for details. Subsequent to adoption of the resolution, City staff has responded further to the water shortage emergency by replying to the Sonoma County Water Agency (SCWA) regarding actions that the City of Ukiah has taken, and will be taking, to address water conservation. Attachment #2 is a copy of that letter. The letter outlined actions that the City is taking, responded to SCWA's request for water use information, and included an outline of the City of Ukiah's water conservation program for 2009. As a result of the drought, the City Council has considered many different aspects of the water shortage issue. Under Council's direction, staff has implemented a series of water conservation and education measures. In addition, the City has a full time staff position dedicated to implementing these measures. Water demand has decreased by 20.8% from the 2008 quantities and 19.0% as compared to the 2004 quantities. Staff assumes that this is as a result of our conservation efforts. This will affect our revenues and staff is working on solutions for this issue as we analyze the fee study that is currently being prepared by an outside consulting firm. Developments from the SWRCB On May 28, 2009, the State Water Resources Control Board (SWRCB) issued an amendment to Order WR 2009-0027-DWR, Order WR 2009-0034-EXEC. The amended order conditionally approves Sonoma County Water Agency's (SCWA) petition to reduce the flow in the Russian River from July 6 through October 2, 2009 to 25 cubic feet per second (cfs) for the upper Russian River and 35 cfs for the lower Russian River if during Continued on page 2 Recommended Action: 1. City Council receive the status report on water shortage emergency Alternative Council Option(s): N/A Citizens advised: N/A Requested by: Jane Chambers, City Manager Prepared by: Rick Seanor, Deputy Director of Public Works Coordinated with: Tim Eriksen, Director of Public Works and City Engineer Attachments: Attachment 1 - Resolution Attachment 2 - Letter to SCWA Approved: J40 S V Q Ja a Cha bers, City Man ger Subject: Drought and Water Shortage Status Meeting Date: August 18, 2010 Page 2 of 2 the period from April 1 through June 30 total inflow to Lake Mendocino is less than or equal to 25,000 acre- feet. The amended order confirms a water conservation goal for Mendocino County of 50% (compared to 2004) from April 6, 2009 until the expiration of this order (October 2, 2009), "By May 6, 2009, SCWA shall submit a plan to the State Water Resources Control Board to obtain the cooperation and participation of agricultural and municipal Russian River water user to reach a water conservation goal of 25 percent in Sonoma County and 50 percent in Mendocino County for the period of April 6, 2009 until the expiration of this order (October 2, 2009). The amended order modified the original order issued on April 6, 2009. From July 6 through October 2, 2009, minimum in-stream flow shall remain at or above 25 cfs, if Lake Mendocino storage is less than 65,630 acre feet on July 1, 2009 (instead of total inflow to Lake Mendocino less than or equal to 25,000 acre-feet). On October 27, 2009 the County of Mendocino Water Agency discussed the current water storage situation in the Ukiah Valley. The discussion led to the consideration of repealing the County emergency order for all water purveyors to limit water usage by 50%. The Agency was not comfortable with the language in the repealing order as prepared by staff and requested staff to bring the order back for adoption at the next regularly scheduled meeting. On November 3, 2009 the County of Mendocino retracted the 50% conservation requirement. However, the Board of Supervisors recommended that each water district strive to achieve 25% conservation on a voluntary basis. The City of Ukiah in the coming weeks must consider how to address this voluntary request by the County of Mendocino. Updated Staff Actions Staff has continually monitored this issue in response to the City Council concerns about this emergency and the length of time that it has been in effect. On December 16, 2009 City Council repealed the mandatory water rationing, however, Stage I voluntary rationing is still in place. Lake Mendocino storage is now 99,610 acre-feet. The state is predicting a dry year so staff recommends the continuation of the voluntary conservation measures. It should be noted that the construction of the pump house at Oak Manor well #8 is near completion. Staff anticipates that this well will be in operation within the next two months. Regional Issues City Staff is also monitoring the Draft Ukiah Valley Area Plan Water Supply Assessment report. Many of the local valley water purveyors are concerned with this report. It is hoped and presumed that the Board of Supervisors will direct county staff to address some of the issues that have been submitted. ATTACHMENT--L_ RESOLUTION NO. 2009-17 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF UII DECLARING A LOCAL EMERGENCY PURSUANT TO THE EMERGENCY SERVICES ACT AND A STAGE I WATER EMERGENCY UNDER SECTION 3602 OF THE U19AH CITY CODE WHEREAS, 1. Lake Mendocino and the Russian River are one current source of water for the City of Ukiah and the primary source of water for other domestic and agricultural users of water in Mendocino and Sonoma Counties; and 2. Average rainfall through March for the area contributing ran-off to Lake Mendocino is 42 inches and the rainfall total through March 2009 is 23 inches; and 3. There have been below average rainfall and reduced storage in Lake Mendocino in 2004, 2007 and 2008; and 4, Average rainfall for April - June is 4.8 inches; and • 5. Even average rainfall for the remainder of the rainy season cannot compensate for the extremely low rainfall this year; and 6. Lake Mendocino held approximately 53,000 acre feet on April 1, 2009, with a Lake level of 727.63 feet and 7. The average Lake storage in April is 84,448 acre feet, the Lake storage in April 2007 was 66,617 acre feet and the average Lake storage in October is 55,854 acre feet, more water at the end of the dry summer season than is currently stored in the Lake; and 8. The historically low water storage level in Lake Mendocino this year is part of a statewide water shortage caused by inadequate rainfall 'which has prompted Governor Sohwarzenegger to declare a statewide emergency under the Emergency Services Act due to these drought conditions; and 9. Mendocino County has declared a local emergency due to drought conditions under the Emergency Services Act; and 10. On April 6, 2009, the State Water Resources Control Board ("SVJRCB") has approved an Urgency Change Petition filed by the Sonoma County Water Agency ("SCWA") to reduce in-sfream flows in the Russian River to 75 cfs from April 6-June 30, 2009 and to as low as 25 cfs for the period July 1-October 2, 2009, if cumulative total inflow to Lake Mendocino is equal to or less than 25,000 acre feet for the period April l June 30, 2009; and 11. The order approving temporary changesto the minimum in-stream flows required by the appropriative rights permits issued to SCWA is subject to several conditions, including a condition requiring the SCWA to submit a plan by May 6, 2409, to the SWRCB to "obtain the cooperation and participation of agricultural and municipal Russian River water users to reach a water " conservation goal of 25 percent in Sonoma County and 50 percent in Mendocino County for the period of April 6, 2009 until the expiration of this order (October 2, 2009) and 12. A local emergency under the California. Emergency Services Act (Government Code §8550 et seq.) is defined in Section 8558(c) as the duly proclaimed existence of conditions of disaster or of extreme peril to the safety of persons and property within the territorial limits of the City caused by such conditions as drought which are or are likely to be beyond the control of the services, personnel, equipment, and facilities of individual local governments and which require the combined forces of other political subdivisions to combat; and 13. The historically low rainfall and water storage in Lake Mendocino qualifies as a local emergency under the statutory definition; and 14. In a declared local emergency, local agencies may provide'mutual aid as needed pursuant to agreements or resolutions, state agencies may provide mutual aid to local agencies pursuant to agreement or at the direction ofthe Governor, costs incurred by the City in providing mutual aid pursuant to agreements or resolution constitute a charge against the state, when approved by the Governor in accordance with adopted regulations, and the City Council may promulgate orders and regulations for the duration of the emergency to provide: protection for life and property (see Government Code 8631-86-34); and 15. In a declared local emergency, the City Council must review the state of the emergency not less than every 21 days after first declaring the emergency; and 16. Under Ukiah City Code Section 3602, the City Council may by resolution declare a water emergency, specify the degree of emergency and place into effect the appropriate provisions of Division 4, Chapter 1, Article 11 of the Uldah City Code pertaining to a Water Shortage Emergency; and 17. In a Stage I water emergency the Mayor shall issue a proclamation urging citizens to institute such water conservation measures on a voluntary basis as may. be required to reduce water demand to coincide with available supply, and 18. The City Council has already authorized the development of a groundwater well on an emergency basis to provide the City with an additional water source this summer that does not rely on the Russian River or water stored in Lake Mendocino; and 19. Stage 11 and HI water emergencies impose various mandatory conservation measures on City residents, including a prohibition on "nonessential water use" in a Stage 11 water emergency and a limit on the daily use of water by different classes of water user in a Stage III i emergency; and 20. The City can declare a Stage II or Stage II emergency, if voluntary measures or less sever mandatory measures does not achieve an adequate reduction in the use of Russian River water or in water use generally to meet the available supply; NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Ukiah hereby: 1. Declares a local emergency due to drought under the Emergency Service Act. 2. Declares a Stage I Water Storage Emergency under Uldah City Code Section 3602. 3. Directs the City Manager: a. to identify and encourage the use as a Russian River water user of voluntary measures to reach a water conservation goal of 50 percent for the period of April 6, 2009 to October 2, 2009 ("Conservation Period"), and to report back to the City Council at each City Council meeting ]field during that same time period on the measures identified, the means used to encourage their use, the amount of water use reduction, and the status of the emergency conditions; b. to notify the City Council, if the City Manager determines that a Stage I Water Emergency is not reducing water use to match the available supply and to recommend a Stage H or III emergency, if necessary to achieve that level of water use; c, at City Council meetings during the Conservation Period to recommend temporary rules or orders to supplement or modify mandatory conservation measures in a Stage II or III Water Storage Emergency to reduce, water use to the available supply and to achieve the conservation goals in Order WR 2009-0027-DWR issued by the Division of Water Rights of the State Water Resources Control Board; c. to work with other local governments in the County, including the incorporated cities and county water districts, to preserve as much water as possible for use during the dry summer months and for the fall return of Chinook Salmon to the Russian River; and d, to coordinate mutual aid efforts to address the local emergency between and among political subdivisions in Mendocino and Sonoma Counties and state agencies. PASSED AND ADOPTED on April l5, 2009, by the following roll call vote: AYES: Councilmembers Landis, Thomas, Crane, Rodin, and Mayor Baldwin NOES: None ABSTAIN: None ABSENT: None Philip E. aldwin, Mayor Lied ro ity Clerk 3 April 28, 2009 Lynn Florey Sonoma County Water Agency Principal Program Specialist P.O. Box 1.1628 Santa Rosa, CA 95406 Dear Ms. Florey; This letter is written in response to your letter dated April 17, 2009. I do not lmow when your letter was received by the City of Ukiah, but it arrived at our water treatment plant rather than in my office at City Hall. The letter was just brought to my attention late yesterday. I had been expecting a request to respond to Sonoma County Water Agency for information related to the State Water Resources Control Board's ruling, and, therefore, aim making an effort to meet your deadline of today's date. In future, it would be helpful if you could copy and/or address critical dated correspondence about these current drought conditions directly to my office, as that will assist us in making timely replies. Attached, please find the diversion volumes information requested in your letter. You will see that overall annual water use since 2004 has been reduced by 11.4%. Water use in the months of April through October has been reduced since.2004 by 13% o. Diversion volume during the months April through October-has also been reduced, for some 25% between 2004 and 2007, and 16% between 2004 and 2008 use. Reduced use over the last few years is a result of the City's commitment to institute conservation measures in both the irrigation and domestic use of water in our community. Attached please fund the City of Ukiah's Water Conservation Program which outlines current activities the City is taking to address water conservation. With regard to immediate drought related conditions, here are some technical and rate related factors that the City of Ukiah must deal with as the summer and high irrigation use time approaches: The City's water supply is obtained from a Ranney collector well and Wells 43 and A. The Raruiey and Well #3 draw water from an alluvial zone along the Russian River. The pumping capacity of both the Rabney collector and Well #3 are affected by the amount of flow in the river. If that water is not available during this summer, the only source of water available as of this date will be Well #4, which is percolated groundwater. On February 27, 2009 Governor A.mold Schwarzenegger declared a water shortage. On February 26, 2009, the City received a letter from Victoria A, 300 SEMINARY AVENUE UKIAM, CA 95482-5400 Phone# 707/463-6200 Faem 7071463.6204 Web Address: www.cilyofuklah.com City staff is actively seeking stimulus funding for a system to deliver recycled water from the City's wastewater treatment plant. At the current time, it is anticipated that the wastewater treatment plant could begin to produce recycled water by August of 2009. A distribution system is under design and plans will be developed within die next few months. Funding for this important resource delivery project will be explored from all possible resources, as the City fully recognizes the value of ushig recycled water to lower the demand for surface water in our area. Although a recycled water distribution system cannot be in place for this summer, the City will pursue developing this resource. With regard to efforts to identify and prevent water waste and Luireasonable use: Typical water waster penalties include, in the order implemented: 1. Educational letter or visit 2. Educational visit and warning 3. Citation 4. Installation of flow restrictor and possible fine 5. Shutoff and reconnection fee The City will identify water wasters through monitoring the water meters and citizen reports. In closing, please review all aspects of the attached conservation measures and water use detail in addressing the four questions of your letter, in addition to the specific issues addressed in the above bullet points. Please call me at 707.463- 6213 if you have questions regarding this information. Sincerely, ?ane A. Chambers Manager Attachments: 1. City of Ukiah Water Use 2. City of Ukiah Water Conservation Program 2009 City of Uldah Water Use Annual Water Use MG 2008 1192.968 -11.4% 2008/2004 2007 1219.964 -9.3% 2007/2004 2006 1248.424 -7.2% 2006/2004 2005 1223.542 -9.1% 2005/2004 2004 1345,744 Water Use (MG) 2004 2007 2008 2009 2007/2004 2008/2004 April 96.743 87.507 87.865 -10% -9% May .145.402 121.506 132.345 -16% -9% June 162.897 149.782 143.469 -8% -12% July 185.876 164.473 158.899 -12% -15% August 179.326 162.859 157.056 -9% -12% Sept, 156.798 134.481 130,508 -1496 -17% Oct. 109.224 83.777 91.724 -23% -16% Total MG 1036,266 904.385 901.866 -23% -13% ac-ft 3180 2775 2768 Diversion Volume (MG) 2004 2007 2008 2009 2007/2004 2008/2004 April 57,046 27.598 62.754 -52% 10% May 112.803 72.833 111.365 -35% -19'p June 129.493 109.976 102,115 -15% July 131,935 105.631 109.09 -2096 -17% August 126.768 104,658 101,593 -17% -20% Sept. 117.755 88.134 85.313 -25% -28% Oct. 96.734 72.864 73.465 -25% -24% Total MG 772,534 581.694 645.695 -25% -16% ac-ft 2371 1785 1982 The City of Ukiah Water Conservation Program 2009 The unpredictability of its water supplies and ever increasing demand on California's complex water resources have resulted in a coordinated effort by the California Department of Water Resources (DWR), water utilities, environmental organizations, and other interested groups to develop a list of urban water conservation demand management measures (DMM) for conserving water. This consensus building effort resulted in a Memorandum of Understanding (MOU) Regarding Urban Water Conservation in California, as amended September 16, 1999, among parties, which formalizes an agreement to implement these DMMs and makes a cooperative effort to reduce the consumption of California's water resources. The MOU is administered by the California Urban Water Conservation Council (CUWCC). The DMMs as defined in the MOU are generally recognized as standard definitions of water conservation measures. 1. CUWCC Demand. Management Measures Implemented The existing conservation The City of Ukiah has had a water conservation program in place since the late 1970's. During the past five years, the City has expanded its program and public outreach. The City reduced the amount of water it used by over 9.3% In 2007 and 11.4% In 200E compared to 2004. Currently, the City's conservation program Includes the following DMMs: DMM 1. Water survey programs for single-family residential and multi-famliy residential connections. The City tests customer meters upon request and Instructs customers in how to use their water meter to determine if there is a leak on the demand side of the meter. The City provides toilet leak detection tablets to customers. DMM 3. System water audits, leak detection, and repair. The City performs leak detection and repair on an ongoing basis. The City, also, calculates system water losses annually and reports this information to DWR. DMM 4. Metering with commodity rates for all new connections and retrofit of existing connections. The City water distribution system is fully metered. The City is currently replacing old meters in the system. The new meters will provide a more accurate reading of water use within the City. The City recently went through a rate re-structuring that is believed will reduce water uses in the future. DMM B. Large landscape conservation programs and incentives. The City's Planning Department reviews all landscape plans proposed for new developments. Included in the City's Municipal Code is a requirement for all landscape planting to be "those which grow well in Ukiah's climate without extensive irrigation." City staff reviews the water use of Its top 5 water users and holds meetings with them on a regular basis to discuss landscape conservation programs. DMM 7. Public information programs. The City believes public awareness of water conservation issues Is an important factor in ensuring a reliable water supply. The City promotes public awareness of water conservation through occasional bill stuffers, distribution of the Consumer Confidence Report, radio broadcasts, newspaper articles, the City ofUkiah's "Activity and Recreation Guide", distribution of brochures and additional information at local expositions and fairs, and on the City website advertised to the community on a banner across a City thoroughfare. The City also provides free of charge water conservation yard signs to encourage minimal use of water for lawn irrigation. Water conservation Information and assistance Is routinely provided to the public by the water utility maintenance staff and meter readers while In the field. Field staff receives conservation training to better assist customers and promote conservation. Door hangers are used to remind customers of Ukiah's Voluntary Water Conservation Program measures and to provide notice of problems with outdoor water use. DMM B. School education programs. City staff presents information on water conservation to elementary school children in the classroom. The City offers local schools tours of Its water treatment plant and also provides educational materials. Four science classes on public water supply at the high school are offered once a year. . DMM 8. Conservation programs for commercial, industrial, and institutional accounts. The City has only two Industrial customers: Maverick Industries and Red Tail Ale Brewery. The City surveys the water usage of these Industries. Any new. commercial, industrial, or institutional developments will be reviewed by the City Planning Department and must meet all requirements of the Municipal Code. DMM 11. Conservation pricing. In 2005, the City Increased and re-structured its water rates to encourage more conservation. The City has simplified Its rate structure by eliminating rate codes and classifying customers according to their meter size. The new rate structure incorporates the American Water Works Association (AWWA) demand capacity guidelines so that price Increases across meter size In proportion to the potential demand a customer can place on the water system. DMM 42. Conservation Coordinator. The City's Conservation Coordinator Is essential to sustaining and improving Ukiah's ongoing water conservation program. The-conservation coordinator is responsible for implementing and monitoring the City's water conservation activities. In practice, the City's water conservation program includes the efforts of the Conservation Coordinator and all staff. DMM 13. Water waste prohibition. The City has adopted regulations that state In part: "Where' negligent or wasteful use of water exists on a customer's premises... the City may discontinue the service..." (City Municipal Code Article 7, Section 3571). The City first sends customers a letter calling their attention to the wasteful practice and asking for correction. If the condition is not corrected within five days after the written notice, service may be discontinued if necessary. DMM 14. Residential ULFT replacement programs. Since October 1992, the sale of toilets using more than 1.6 gallons per flush has been prohibited by State and Federal regulations. These regulations are enforced in the City. If. Additional Water Conservation Measures In addition to the DMMs, the City has also taken the following actions 1. Installation of five waterless urinals in the Ukiah Civic Center to support and promote the use of waterless urinals in all City facilities and In the public sector. The use of these urinals has received very positive feedback from Facilities staff who would like to Install these in the Ukiah Valley Conference Center. 2, Cooperative water conservation programs have been developed between the City and the Mendocino County Water Agency, the Russian River Public Water Agencies, and the Sonoma County Water Agency. 3. The Ukiah City Council adopted the Ahwahnee Water Principles on April 4, 2007. The Principles contain ideas for protecting and enhancing water quality, improving water availability, making more efficient use of water, and conserving water as a scarce resource. The Principles suggest a process for Improving decision-making as it impacts water-related issues. The City Council reviewed the Principles and determined the ideas and suggestions promote the Council's stated goals. Ill. Future Water Conservation Activities The City has recently undertaken a rate and revenue study of its water utility. A tiered inclining block rate structure and excess use charge are being evaluated to.encourage water conservation. The City has submitted a pre-eppilcation to the State Water Resources Control Board State Revolving Fund to construct a recycled water system. The City's Wastewater Treatment Plant Improvement Project is scheduled to be completed by June 2009. After the project is completed, the plant will be capable of producing 2 million gallons per day (MGD) in the summer and up to 7.5 MGD in the winter of Title 22 unrestricted use recycled water. Other immediate and long-term conservation measures Include: • installation of waterless urinals and dual flush toilets in all City buildings (immediate) • Sign the California Urban Water Conservation Council's Memorandum of Understanding Regarding Urban Water Conservation and implement the 14 best management practices (long term) • Water efficiency standards for new single-family development (long term) • Water: ef8clent landscaping (long term) • Water waste ordinance prohibiting; (immediate) 1, gutter flooding 2. carwash fundraisers 3. non-recycling decorative water fountains 4. breaks or leaks In the water delivery system • Incentives for Retrofits (long tern) x. low flow shower heads 2, toilet displacement devices B. toilet flappers 4. faucet aerators s. high efficiency washing machines 6. ultra=low flow toilets ASO ITEM NO.: 7f MEETING DATE: August 18, 2010 c`Uy af," ,z-lk ak AGENDA SUMMARY REPORT SUBJECT: APPROVAL OF NOTICE OF COMPLETION FOR THE REDWOOD BUSINESS PARK ELECTRIC SYSTEM RELIABILITY IMPROVEMENT PROJECT, SPECIFICATION NO. 09-13 AND APPROVAL OF FINAL PAYMENT OF THE 10% RETENTION TO WIPF CONSTRUCTION. The City Council awarded the contract for the Redwood Business Park Electric System Reliability Improvement Project on October 7, 2009 to Wipf Construction in the amount of $98,147.20. The contract was for the installation of conduits and vaults for a 12 kV circuit tie between the Cherry Street and Gobbi circuits. The final cost of the project in accordance with the Contract Bidding Schedule is based on a unit price for each item. The actual quantity amounts calculated upon final review of the completed project reflect an increase in cost in the amount of $4,068.59. In addition, staff approved one change order in the amount of $1,480.00 to cover additional work related to the project. This cost is within the 10% contingency allowed for the project. The work was completed by Wipf Construction in conformance with the approved plans and specifications on June 18, 2010. The final contract cost, reflecting approved change orders and additional quantity amounts is $103,695.79. Final payment of the 10% retention will be made to the contractor after 30 days from the date the Notice of Completion is filed with the County Recorder (Attachment #1). Fiscal Impact: Budgeted FY 09/10 New Appropriation Not Applicable Budget Amendment Required 1-1 F-1 F Amount Budgeted Source of Funds (title and Account Number Addit. Appropriation Requested $700,000.00 Dist.-UG Projects 800.3646.800.000 Recommended Action(s): 1. Accept the work as completed. 2. Direct the City Clerk to file the Notice of Completion with the County Recorder for the Redwood Business Park Electric System Reliability Improvement Project, Specification No. 09-13. Alternative Council Option(s): N/A Citizens advised: N/A Requested by: Mel Grandi, Electric Utility Director Prepared by: Al Smatsky,.Electric System Designer Coordinated with: Jane Chambers, City Manager, Mary Horger, Purchasing Supervisor Attachments: Notice of Completion Approved: J e Ch Ambers, City Manager Attachment # .1 Please return to: CITY OF UKIAH 300 Seminary Avenue Ukiah, California 95482-5400 (707) 463-6200 NOTICE IS HEREBY GIVEN: NOTICE OF COMPLETION That the real property described is owned by the following whose address is: City of Ukiah, a Municipal Corporation, 300 Seminary Avenue, Ukiah, California 95482-5400 2. That the nature of the title to the Redwood Business Park Electric System Reliability Improvement Project, Specification No. 09-13 of all said owners is that of fee simple. 3. That on the 18th day of June 2010, the Contract work for this project was actually completed. 4. That the name and address of the Contractor is Wipf Construction. 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 various power poles within the Citv of Ukiah. I hereby certify under penalty of perjury that the forgoing is true and correct: City Council Approval CITY OF UKIAH, a Municipal Corporation By: Date JoAnne Currie, City Clerk Date State of California County of Mendocino C'i~y c%J' U. aft ITEM NO.: 7g MEETING DATE: AGENDA SUMMARY REPORT August 18, 2010 SUBJECT: ADOPT RESOLUTION APPROVING FIRST AMENDMENT TO AGREEMENT FOR CONSTRUCTION, OPERATION AND FINANCING OF COMBUSTION TURBINE PROJECT ONE AND QUITCLAIM DEED. The City of Ukiah's Electric Utility along with other Northern California Power Agency (NCPA) members each have an entitlement percentage of a power generation project referred to as CT1. The CT1 Project consists of combustion turbine generating units located in Roseville (2 units), Lodi (1 unit) and Alameda (2 units). The CT1 Project became operational in '1985-'86. CT1 Project Participants have an undivided right to the output (and an undivided obligation to "take or pay" for that output) in proportion to their respective Project participation percentages as described in the CT1 Third Phase Agreement dated as of July 1, 1984. In 2007, the Project Participants entered into an Agreement for Layoff and Sale of Project Entitlement Percentage Relating to the Combustion Turbine Project Number One ("Layoff and Sale Agreement"). During Phase 1 of the Layoff and Sale Agreement, various layoffs among NCPA members (including Biggs and Gridley, who are not currently formally Project Participants) have occurred and the parties have treated the Roseville CT1 units as if they were actually owned by Roseville. The City of Roseville, a participant in the CT1 Project and the City of Lodi, also a participant, negotiated an agreement to permit exchange energy from the plant in Lodi to the one in Roseville. This action was taken to recognize that Roseville was in the SMUD/Western Balancing Authority, and, therefore, the generation of energy from the Roseville-based plant would be more economical and beneficial to Roseville than from the Lodi-based plant. Similarly, since Lodi is in the CAISO Balancing Authority, the generation of energy from the Lodi-based plant would be more economical and beneficial to Lodi than from the Roseville-based plant. The ultimate goal of the CT1 Participants, including Roseville, was to transfer the ownership of the Roseville-based plant to Roseville. Under the terms of the CT1 Third Phase Agreement, the parties would not be able to take this step until the Project bonds are retired. These bonds will be paid off in August 2010. Phase 2 of the Agreement will complete the transfer to Roseville of the ownership of the Roseville plant. During Phase 2, the following actions need to take place in order for Roseville to acquire the ownership of the Roseville CT1 plant: 1. NCPA to execute a deed to reflect the ownership change over to Roseville. Continued on Page 2 Recommended Action(s): Adopt Resolution Approving First Amendment To Agreement For Construction, Operation And Financing Of Combustion Turbine Project One And Quitclaim Deed Alternative Council Option(s): Do not approve resolution and provide direction to staff. Citizens advised: Requested by: Prepared by: Mel Grandi, Electric Utility Director Coordinated with: David Rapport, City Attorney Attachments: 1) First Amendment to Agreement for construction, Operation and Financing of Combustion Turbine Project One 2) Quitclaim Deed 3) Resolution Approved: g J Chary Hers, City Manager 2. Remainder of the CT1 Participants'to execute a Quitclaim to Roseville of their interest in the Roseville CT1 plant. 3. Biggs and Gridley also must execute a similar Quitclaim to Roseville of their interest in the Roseville plant energy, even though they were not among the original Project Participants, because they have been the recipients of the energy from the Roseville plants through a separate provision of the Layoff Agreement. 4. Roseville to execute Quitclaim of its interest in the Lodi and the Alameda plants. As a result of these actions, Roseville will solely own the Roseville CT1 plant and be divested of any interest in the other CT 1 combustion turbine plants. Fiscal Impact Going forward, the expenses associated with the CT1 plants in Lodi and Alameda will be comprised of the operation, maintenance, equipment replacement, plant betterments, etc. For this purpose, the revised NCPA Project share by percentage basis is as shown in the table below: CT1 PROJECT PARTICIPANT NEW PROJECT ENTITLEMENT PERCENTAGE PREVIOUS PROJECT ENTITLEMENT PERCENTAGE City of Alameda 21.820 13.092 City of Biggs 0.197 .12 City of Gridley 0.350 .2130 City of Healdsbur 5.833 3.5 City of Lodi 13.393 34.78 City of Lompoc 5.833 3.5 City of Santa Clara 41.667 25 City of Ukiah 9.090 5.454 Plumas-Sierra Rural Electric Cooperative 1.817 1.09 City of Roseville 0 13.251 TOTAL 100% 100% Fiscal Impact: Budgeted FY 09/10 F-1 New Appropriation ❑X Not Applicable Budget Amendment Required F F1 Amount Budgeted Source of Funds (title and Account Number Addit. Appropriation Requested ATTACHMENT . _ FIRST AMENDMENT TO AGREEMENT FOR CONSTRUCTION, OPERATION AND FINANCING OF COMBUSTION TURBINE PROJECT NUMBER ONE by and among NORTHERN CALIFORNIA POWER AGENCY and CITY OF ALAMEDA CITY OF BIGGS CITY OF GRIDLEY CITY OF HEALDSBURG CITY OF LODI CITY OF LOMPOC CITY OF ROSEVILLE CITY OF SANTA CLARA CITY OF UKIAH PLUMAS-SIERRA RURAL ELECTRIC COOPERATIVE 993135.3 FIRST AMENDMENT TO AGREEMENT FOR CONSTRUCTION, OPERATION AND FINANCING OF COMBUSTION TURBINE PROJECT NUMBER ONE' This First Amendment to Agreement ("First Amendment") is made by and between the Northern California Power Agency, a joint powers agency of the State of California ("NCPA").and the Cities of Alameda, Biggs, Gridley, Healdsburg, Lodi, Lompoc, Roseville, Santa Clara, and Ukiah,'and Plumas-Sierra Rural Electric Cooperative, and WITNESSETH: WHEREAS, each of the parties to this First Amendment, other than the City of. Biggs ("Biggs") and the City of Gridley ("Gridley"), is a party to that certain "Agreement for Construction, Operation, and Financing of Combustion Turbine Project Number One" dated as of July 1,1984 (".the Agreement") and therefore constitutes a "Project Participant" within the meaning of section 1(g) of the Agreement; and WHEREAS, in addition to the Project Participants the Agreement indicates that Turlock Irrigation District ("Turlock") was intended to be a party to the Agreement, but Turlock never executed the Agreement and is not a Project Participant; and WHEREAS, pursuant to the Agreement, NCPA has constructed and operated, and continues to operate, Combustion Turbine Project Number One ("the CTl Project"), consisting of five (5) separate units, two (2) of which are located near the City of Roseville, California ("the Roseville CTl Units"), two (2) of which are located in the City of.Alameda,_California ("the Alameda CTl Units"), and one (1)-of which-is located in the City of Lodi, California ("the Lodi CTl Unit"); and WHEREAS, each of the parties to this First Amendment, other than NCPA, Biggs and .Gridley, owns an undivided share or "Project Entitlement Percentage". of the capacity and of the energy produced by the CTl Project pursuant to the Agreement, which Project Entitlement Percentage is specified in an appendix to the Agreement; and WHEREAS, the Roseville CT1 Units, Alameda CT1 Units, and Lodi CTl Unit are owned and operated by NCPA as a single project on behalf of those parties owning a Project Entitlement Percentage, and the Project Entitlement Percentages are not stated with reference to any particular CT1 Unit; and WHEREAS, the City of Lodi ("Lodi") presently owns a Project Entitlement Percentage of 34.780% and the City of Roseville ("Roseville") presently owns a Project Entitlement Percentage of 13.584%; and WHEREAS, Roseville currently lays off 0.118% of the Project Entitlement Percentage to Biggs and 0.210% of the Project Entitlement Percentage to Gridley; and 993135-3 WHEREAS; the parties have entered into an "Agreement for Layoff and Sale of Project Entitlement.Percentage Relating to Combustion Turbine Project Number One," dated as of September 1, 2007 ("the Layoff and Sale Agreement"), which provides among other matters that in Phase One of said agreement: a. Lodi will layoff 26.416% of the Project Entitlement Percentage to Roseville; b. Roseville will assign its layoffs to Biggs and Gridley to Lodi, and Lodi will layoff those amounts to those cities; c. Roseville will make certain payments to Lodi; and . d. NCPA and the Project Participants will treat Roseville's Project Entitlement Percentage, including the layoff from Lodi, as residing solely at the two (2) Roseville CT1 Units, and Roseville will relinquish any claim to capacity, energy or other rights to the Alameda CT1 Units and the Lodi CT1 Unit; and WHEREAS, the Layoff and Sale Agreement provides that Phase Two of said agreement will not commence until all bonds previously sold for the construction and financing of the CTl Project have been retired; and WHEREAS, the Layoff and Sale Agreement provides that, among other matters, that in Phase Two of said agreement: a. NCPA will transfer fee ownership of the Roseville CT1 Units to Roseville; and b. That the Agreement will be amended to provide that: i. The CTl Project no longer includes the Roseville CT Units; I. Biggs and Gridley shall become signatories to the Agreement, and Project Participants in the CT1 Project, based upon the Project Entitlement Percentages previously subject to lay off to them; iii. Roseville'shall cease to be a signatory to the Agreement, and shall no longer be deemed a Project Participant; and iv. The Project Entitlement Percentage of all Project Participants (including Biggs and Gridley and excluding Roseville) shall be adjusted in proportion to the original Project Entitlement Percentages taking into account the addition of Biggs and Gridley as Project Participants, the exclusion of Roseville as a Project Participant, and the sale of the Roseville CT1 Units to Roseville. 993135-3 NOW, THEREFORE, the Parties hereto agree as follows: 1. This First Amendment shall be effective concurrently upon the commencement of Phase Two of the Layoff and Sale Agreement. It shall be of no force or effect prior to that time. 2. Section 1(e) of the Agreement is amended to read: "(e) "Project" means a project consisting of three (3) 24-megawatt combustion turbine generating units, located two (2) units in the City of Alameda, California ("the Alameda CT1 Units") and one (1) unit in the City of Lodi, California ("the Lodi CTl Unit")." 3. Appendix "A' of the Agreement is amended to include the following Project Entitlement Percentages: PROJECT PARTICIPANT PROJECT ENTITLEMENT PERCENTAGE City of Alameda 21.820 City of Biggs 0:197 City of Gridley 0.350 City of Healdsburg 5.833 City of Lodi 13.393 City of Lompoc 5.833 City of Santa Clara 41.667 City of Ukiah 9.090 Plumas-Sierra Rural Electric Cooperative 1.817 TOTAL 100%. 4. Biggs and Gridley are Project Participants and are added as parties to the Agreement. Roseville is no longer a Project Participant and is deleted as a party to the Agreement. Turlock, by reason of not having executed the Agreement, is not a party to the Agreement and is not a Project Participant. 5. Except as otherwise provided in this First Amendment, the Agreement shall remain in full force and effect. 6. Each signatory to this First Amendment represents and warrants that. he or she has been duly authorized to enter into it by the governing board of the party on whose behalf he or she has executed it. 993135-3 . 7. This First Amendment may be executed in several counterparts, all or any of which shall be regarded for all purposes as one original and shall constitute and be but one and the same instrument. IN WITNESS WHEREOF, each party has executed this First Amendment with the approval of its governing body, and has caused its official.seal to be affixed, and, NCPA has executed this First Amendment with the authorization of its Commission. NORTHERN C IFO IA POWER AGENCY By: Its: ~s A Date: CITY OF ALAMEDA By: Its: Date: CITY OF BIGGS By:. Its: Date: CITY OF GRIDLEY By: Its: Approved as to form: By: Attest: Approved as to form: By: Attest: Approved as to form: By: Attest: Approved as to form: By: Attest: Date: 993135.3 CITY OF HEALDSBURG Bv: Its: Date: CITY OF LODI By: Its: Date: CITY OF LOMPOC Bv: Its: Date: CITY OF ROSEVILLE By: Its: Date: CITY OF SANTA CLARA Bv: Its: Date: Approved as to form: BY: Attest: Approved as to form: By: Attest: Approved as to form: Bv: Attest: Approved as to form: BY: Attest: Approved as to form: By: Attest: 993135-3 CITY OF UKIAH By: Its: Date: PLUMAS-SIERRA RURAL ELECTRIC COOPERATIVE By: Its: Date: Approved as to form: By: Attest: Approved as to form: By: Attest: 993135-3 CITY OF UKIAH By: Its: Date: PLUMAS-SIERRA RURAL ELECTRIC COOPERATIVE By: Its: Date: Approved as to form: By: Attest: Approved as to form: By: Attest: 993135-3 ATTACHMENT -L RECORDING REQUESTED BY AND WHEN RECORDED MAIL TO NAME City Clerk MAILIN City of Roseville G 311 Vernon Street ADDRES S CITY, Roseville, CA 95678 STATE ZIP CODE Exempt from recording fees pursuant to Govt. Code 27383 PHIS LINE RESERVED FOR RECORDER'S USE) QUITCLAIM DEED WHEREAS, on September 1, 2007, Northern California Power Agency, a joint powers agency of the State of California ("NCPA"), the Cities of Alameda, Healdsburg, Lodi, Lompoc, Roseville, Santa Clara, Biggs, Gridley and Ukiah, and the Plumas-Sierra Rural Electric Cooperative entered into the Agreement for Layoff and Sale of Project Entitlement Percentage Relating to Combustion Turbine Project Number One (the "Agreement"); WHEREAS, under the Agreement, the parties agreed to transfer ownership of the two Roseville CT Units to the City of Roseville upon the commencement of Phase Two; WHEREAS, Phase Two has commenced and the City of Ukiah now wishes to quitclaim its interest in the Roseville CT Units to the City of Roseville. NOW, THEREFORE, FOR VALUABLE CONSIDERATION, receipt of which is hereby acknowledged, the City of Ukiah, does hereby remise, release, and forever quitclaim to the City of Roseville, a municipal corporation, all right, title, and interest the City of Ukiah has or may have in the real property located in the City of Roseville, County of Placer, State of California, described in Exhibit "A" and depicted in Exhibit "B" attached hereto and made a part hereof. 1341963.2 IN WITNESS WHEREOF, has executed this Quitclaim Deed as of the of , 2010. By: Attest: By: Benj Thomas, Mayor JoAnne Currie, City Clerk Approved as to Form: By: David Rapport, City Attorney SIGNATURES MUST BE NOTARIZED 1341963.2 STATE OF CALIFORNIA ) ss COUNTY OF On before me, , a personally appeared , 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 the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. Signature (Seal) 1341963.2 EXHIBIT "A" LEGAL DESCRIPTION THE LAND DESCRIBED HEREIN IS SITUATED IN THE STATE OF CALIFORNIA, COUNTY OF PLACER, UNINCORPORATED AREA, AND IS DESCRIBED AS FOLLOWS: PARCEL ONE: ALL THAT PORTION OF THE SOUTHEAST ONE-QUARTER OF SECTION 8, TOWNSHIP 11 NORTH, RANGE 6 EAST, M.D.B.&M., DESCRIBED AS FOLLOWS: BEGINNING AT THE INTERSECTION OF THE NORTHEASTERLY RIGHT-OF-WAY LINE OF THAT CERTAIN 75 FOOT-WIDE EASEMENT GRANTED TO PACIFIC GAS AND ELECTRIC COMPANY, RECORDED IN BOOK 738, AT PAGE 426, OFFICIAL RECORDS OF PLACER COUNTY, AND THE SOUTHERLY LINE OF THE SOUTHEAST ONE-QUARTER OF SAID SECTION 8, AS SAID SECTION LINE IS SHOWN ON THAT CERTAIN PARCEL MAP FILED IN BOOK 20 OF PARCEL MAP, AT PAGE 126, PLACER COUNTY RECORDS, SAID INTERSECTION BEARS SOUTH 89 DEGREES 28 MINUTES 12 SECONDS WEST 758.88 FEET FROM THE SOUTHEASTERLY CORNER OF SAID SECTION 8; THENCE, FROM SAID POINT OF BEGINNING, ALONG THE NORTHEASTERLY RIGHT-OF-WAY LINE OF SAID PACIFIC GAS AND ELECTRIC COMPANY EASEMENT, NORTH 48 DEGREES 04 MINUTES 37 SECONDS WEST 180.00 FEET; THENCE, NORTH 33 DEGREES 40 MINUTES 43 SECONDS EAST 373.86 FEET; THENCE, SOUTH 48 DEGREES 04 MINUTES 37 SECONDS EAST 233.61 FEET; THENCE, SOUTH 41 DEGREES 55 MINUTES 23 SECONDS WEST 370.00 FEET TO THE POINT OF BEGINNING. EXCEPTING THEREFROM ALL OIL, GAS, MINERALS, HYDROCARBONS AND KINDRED SUBSTANCES LYING BELOW A DEPTH OF 500 FEET, AS CONVEYED TO NATIONAL RESOURCES EQUITIES CORPORATION BY DEED RECORDED NOVEMBER 10, 1969, IN BOOK 1269 OFFICIAL RECORDS, AT PAGE 62, PLACER COUNTY RECORDS. APN: 017-061-037 PARCEL TWO: AN EASEMENT FOR INGRESS, EGRESS AND PUBLIC UTILITIES, OVER, UNDER AND ACROSS A STRIP OF LAND THE UNIFORM WIDTH OF THIRTY (30.00) FEET, SITUATE IN SECTION 8 AND SECTION 9, TOWNSHIP 11 NORTH, RANGE 6 EAST, M.D.B.&M., THE CENTERLINE OF WHICH IS DESCRIBED AS FOLLOWS: BEGINNING AT THE INTERSECTION OF THE CENTERLINE OF SUNSET BOULEVARD, A PUBLIC STREET, WITH THE WESTERLY BOUNDARY OF SUNSET BUSINESS PARK UNIT NO. 1 AS SHOWN ON THE OFFICIAL MAP THEREOF, FILED IN BOOK 9 OF PARCEL MAPS, PAGE 25, PLACER COUNTY RECORDS, SAID 1341963.2 INTERSECTION BEARS NORTH 81 DEGREES 16 MINUTES 59 SECONDS WEST 55.73 FEET FROM THE INTERSECTION OF THE CENTERLINES OF DULUTH AVENUE AND SAID SUNSET BOULEVARD; THENCE, FROM SAID POINT OF BEGINNING AND ALONG THE WESTERLY EXTENSION OF THE CENTERLINE OF SAID SUNSET BOULEVARD, NORTHWESTERLY ALONG THE ARC OF A CURVE TO THE RIGHT, CONCAVE NORTHEASTERLY HAVING A RADIUS OF 4000.00 FEET AND BEING SUBTENDED BY A CHORD BEARING NORTH 70 DEGREES 40 MINUTES 41 SECONDS WEST 1417.48 FEET; THENCE, SOUTH 33 DEGREES 23 MINUTES 12 SECONDS WEST 440.92 FEET TO A POINT ON THE NORTHEASTERLY LINE OF THE PARCEL OF LAND DESCRIBED HEREIN AND THE POINT OF TERMINATION OF THE EASEMENT DESCRIBED HEREIN, SAID POINT BEARS SOUTH 48 DEGREES 04 MINUTES 37 SECONDS EAST 15.17 FEET FROM THE MOST NORTHERLY CORNER OF SAID PARCEL OF LAND. THE SIDELINES OF SAID STRIP OF LAND TO BE LENGTHENED OR SHORTENED TO TERMINATE IN THE NORTHEASTERLY LINE OF THE PARCEL OF LAND DESCRIBED HEREIN AND IN THE WESTERLY BOUNDARY OF SAID SUNSET BUSINESS PARK UNIT NO. 1. 1341963.2 EXHIBIT "B" Schedule8(b)-2 OQ CVrf=/1G ~WR1~NG ?p.opppp VA rx ~~CJ0000 J, a 0 0 0 EXECUTION COPY Q r~ 0 m 0 W .W. 'Ll N 1341963.2 ATTACHMENT RESOLUTION NO. 2010- RESOLUTION OF THE CITY COUNCIL OF THE CITY OF UKIAH APPROVING AMENDMENT NO. 1 TO CT 1 AGREEMENT AND QUITCLAIM DEED AND AUTHORIZING CITY MANAGER TO SIGN SAME WHEREAS: 1. The City of Ukiah is a party to the Agreement for Construction, Operation and Financing of Combustion Turbine Project Number One ("CT 1 Agreement"), pursuant to which it acquired a "project entitlement percentage" to the capacity and energy produced by combustion turbine power generating plants located in the cities of Roseville, Lodi, and Alameda; and 2. The parties to the CT 1 Agreement have agreed to convey full title to the plant in Roseville to the City of Roseville ("two Roseville CT 1 Units") in exchange for the City of Roseville relinquishing its interest in the other plants subject to the CT 1 Agreement; and 3. To implement this agreement the City Council must approve the First Amendment to the CT 1 Agreement and quitclaim all of its right, title and interest in the plant in Roseville to the City of Roseville; and 4. The City Council's actions as described above are subject to: a. the other parties to the CT 1 Agreement approving the First Amendment to that agreement; b. the other parties to the CT 1 Agreement quitclaiming all of their right, title and interest in the two Roseville CT 1 Units to the City of Roseville; c. the City of Roseville quitclaiming all its right, title and interest in the other CT-1 plants to the other parties to the CT 1 Agreement; and d. NCPA executing and delivering its Grant Deed to the two Roseville CT 1 Units to Roseville; NOW, THEREFORE, BE IT RESOLVED as follows: 1. Subject to satisfaction of the conditions set forth in paragraph 4 of the above recitals, the First Amendment to the Agreement for the Construction, Operation, and Financing of Combustion Turbine Project One, as set forth in the Attachment 1 to the Agenda Summary Report for item 7g on the City Council agenda for August 18, 2010 ("ASR"), is hereby approved and the City Manager is hereby authorized to sign the agreement on behalf of the City and, thereby, to bind the City to the terms of that amendment. Page 1 of 2 2. Subject to satisfaction of the conditions set forth in paragraph 4 of the above recitals, the City Council approves the Quitclaim Deed conveying all of the City's right, title and interest in the two Roseville CT 1 Units in substantially the form of Attachment 2 to the ASR, and authorizes the City Manager to execute the Quitclaim Deed on the City's behalf. PASSED AND ADOPTED at a regular meeting of the City Council of the City of Ukiah on the 18th day of August, 2010, by the following roll call vote: AYES: NOES: ABSENT: ABSTAIN: Benj Thomas, Mayor ATTEST: JoAnne M. Currie, City Clerk ITEM NO.: MEETING DATE. AGENDA SUMMARY REPORT 7h August 18, 2010 SUBJECT: REPORT TO COUNCIL ON IMPLEMENTATION OF WATER RATE CHANGES On July 21, 2010, the Ukiah City Council adopted a schedule of rates and charges for the water utility of the City. The new rates and charges were to become effective for utility bills issued on or after August 1, 2010 and each July 1St thereafter, according to the adopted schedule. Initially, rates were changed for the water bills dated August 4th. The effect of this was to apply the new rates to water used during part of June and part of July. Some customers brought this to staff's attention and expressed the opinion that charging the new rate for water used prior to August 1St was unfair. Staff reviewed the notices and action taken by Council and determined the initial implementation was consistent with the notices and Council action, but could be interpreted to apply only to water consumed after the August 1 effective date for the new rates. Staff understands the customers' position and belief that the rate change should only apply to water consumed in August and thereafter. Furthermore, staff verified that the billing software now has the capability to prorate bills based on meter reading dates. Therefore, based on this alternative interpretation of the resolution adopting the new rates, staff is revising the implementation plan to prorate consumption before and after the August 1 effective date of the increase and re-bill the one billing cycle already billed. Any customer that pays the amount on the initial bill will have a credit amount carried forward to the next billing cycle. This proration will use the rate in effect prior to August 1 to charge for water consumed before August 1 and will use the rate in effect on August 1 to charge for water consumed on and after that date. Pro-rated bill example: water consumption between July 6th and August 5th will be prorated as 83.33% old rate (7/6-7/31, 25 days) and 16.67% new rate (8/1-8/5, 5 days). Fiscal Impact: The rate study projected eleven months of revenue at the new rate. The current rate implementation plan will generate eleven months of revenue at the new rate. The initial implementation approach would have produced twelve months of revenue at the new rate. Therefore no budget adjustment is needed for this revised implementation plan. Recommended Action(s): Accept report on implementation of water rate changes Alternative Council Option(s): Provide alternate direction to staff for implementation of water rate changes Citizens advised: N/A Requested by: N/A Prepared by: Gordon Elton, Finance Director Coordinated with: Jane Chambers, City Manager; Sage Sangiacomo, Assistant City Manager; Jan Newell, Finance Controller Attachments: None Approved:. Ja Cha ers, City Manager -a-10 1 p--M ~5Q. Mendocino County Agriculture Business Coalition A partnership of the Mendocino County Farm Bureau, the North Coast Builders Exchange and the Employers Council of Mendocino County August 18t", 2010 Mayor Benj Thomas Members of the Ukiah City Council 300 Seminary Ave. Ukiah, CA 95482 Dear Mayor and Councilmembers: We would like to take this opportunity to formally introduce ourselves to you. We are the Mendocino County Agriculture & Business Coalition (ABC), an organization formed recently as a collaborative effort between the Mendocino County Farm Bureau, the Employers Council of Mendocino County, and the North Coast Builders Exchange. This new organization was formed to strengthen our collective voices on selected local issues that each of our groups are concerned with - issues on which we find ourselves in agreement. The three groups will maintain their individual identity and will weigh in at public meetings on their own, but we will also speak with one strong voice when issues warrant it. The ABC has identified six Priority Issues on which we will focus our initial efforts. These issues are listed on the attached page. Jointly, the Farm Bureau, ECMC and the Builders Exchange will be speaking on behalf of more than 3000 members and tens of thousands of their employees, so we hope you will welcome our views and recommendations as representing a broad and diverse cross-section of our community. We request that you and your staff keep ABC apprised of any City of Ukiah issues that are on our Priorities List and make us aware of any advisory or study groups that may be created. ABC looks forward to working closely with you in creating a better Ukiah for all citizens. Sincerely, Devon Jones Executive Director Mendocino County Farm Bureau Mark Johnson Executive Director Employers Council of Mendocino County A~ex A/M-4- Keith Woods Chief Executive Officer North Coast Builders Exchange 303-C Talmage Road Ukiah, CA 95482-6475 • (707) 462-6664 • mendofb@pacific.net 8-41Z-111 '04,qo'g(a- Mendocino County A partnership of the Mendocino County Farm Bureau, the North Coast Builders Exchanqe and the Employers Council of Mendocino County Mendocino County Agriculture & Business Coalition Primary Issues 1. Ensure that there is an adequate and dependable water supply for all users in the county. 2. Encourage the development of more efficient local planning departments to streamline processes with land use issues, permitting and other business needs. 3. Work with local governments to develop and implement sound fiscal management practices to protect services and prevent additional burdens on taxpayers. 4. Advocate for planning, environmental and building policies that give proper consideration to economic benefits to the community and allow for sustainable future growth and development. 5. Promote the development and maintenance of technical training to be able to sustain a quality local workforce. 6. Encourage responsible citizens of Mendocino County to run for public office in regional, county, city and special district elections and seek appointments to various governmental boards, commissions and authorities. 303-C Talmage Road Ukiah, CA 95482-6475 • (707) 462-6664 • mendofb@pacific.net ITEM NO.: MEETING DATE: ci ZJ of ~xkj h AGENDA SUMMARY REPORT 10a August 18, 2010 SUBJECT: RECEIVE REPORT AND PROVIDE DIRECTION TO STAFF FOR STATUS OF CITY OF UKIAH/UVSD WASTEWATER MSR AND OTHER MSR STATUS Background: The City of Ukiah has been engaged since 2004, in a process to produce Municipal Service Review (s) (MSR) required under California State law under the Cortese-Knox-Hertzberg Local Government Reorganization Act of 2000. The law endows the Local Agency Formation Commission ( LAFCO) with responsibility and influence to oversee growth in California. The new requirements under the law fell heavily on smaller, rural LAFCO organizations that did not have staffing capacity to undertake the research, analysis, and writing of the MSR documents. However, most rural county areas have been able to complete the MSR requirements, which were required to be completed by the mid decade, including an extension period that was granted. The law also required updating of the documents on a five year basis. The City of Ukiah's initial MSR documents have not been completed in the decade since the law was passed. The five year updates of the documents are also overdue. Many smaller areas, or even LAFCO's in a more populated area such as Sonoma County, engaged consultants to have the documents produced. This is a common procedure for many state mandated required documents, where neither city nor county staffing capacity provides for the periodic production of studies and reports, or where staff expertise and technical knowledge must be supplemented to address complex and technical operations in order to produce the required documents. The City of Ukiah has undertaken, with significant staff and consultant expense, to assist the Mendocino LAFCO with the production of the MSR documents. An analysis of the work effort that the City of Ukiah has made in this regard resulted in the following data: Continued on page 2 Recommended Action(s): Receive Report and Direct staff to send a letter to the LAFCO Board as attached and indicate if further discussion of other MSR status should be placed on future Council aaenda. Alternative Council Option(s): Provide staff with alternative direction to sending the attached letter to LAFCO. Citizens advised: Frank McMichael, LAFCO Requested by: Jane Chambers, City Manager Prepared by: Jane Chambers, City Manager Coordinated with: David Rapport, City Attorney Attachments: 1) Draft letter with attachments, 2) Municipal Service Review Steps 2004-2008 , Approved: a Chambers, City Manager i City of Ukiah Staff (10 employees) 2004-2010 Consultant/Outside Assistance Ukiah/UVSD Wastewater MSR (Paid to LAFCO) Total Estimated Costs to date Discussion: 897 Hours $40,975 222 Hours $45,560 $28,775 $115,310 Attached is a letter outlining the City of Ukiah's concerns with the most recent MSR issue in a long process of the City's efforts to get the MSR's completed through LAFCO. A draft of the Wastewater MSR, in which the City had participated, along with the UVSD, in an attempt to have completed through a consultant, was received by the City Manager in June. Payment of $28,775, for this document was made to LAFCO in June, 2008, based upon the agreements that had been reached at the time for a process to be followed to produce the document. The City Attorney has reviewed the draft document and noted its deficiencies in both process and content. That information is contained in the draft letter attached. Both the City Attorney and the City Manager share concern that the product for which the City of Ukiah made payment to LAFCO, has not been produced, nor can the draft be revised into an acceptable product. The draft letter to LAFCO outlines a remedy for this situation. Fiscal Impact: The City of Ukiah does not have the staff capacity nor the funding available to continue to repeat cycles of staff work drafting and submitting MSR's to LAFCO. It appears that at least $115,310 dollars have been expended in the MSR process, and to date, not a single MSR for the City of Ukiah is complete. Attachment #2 outlines the many staff steps that have been taken to attempt to achieve completion of MSR's from 2004-2008. It does not include steps that have been taken in the last two years, which have largely been to revise documents previously submitted to LAFCO. In the case of the Wastewater MSR, the City has paid for a document that has now come back in draft form, 2 years later, and is not a product that City staff can recommend to the Council, nor a product that the Staff can amend, to present to the City Council. It is recommended that the City Council approve the draft letter enclosed to be sent to the LAFCO Board, in an effort to engage that Board in addressing the issue of how to go forward to complete a Wastewater MSR. Staff has provided the information regarding the hours to date and expenditures that the City of Ukiah has made to achieve completed MSR's in order that the Council has that background information when discussing the Wastewater MSR issue. It may be appropriate for the City Council to indicate during the discussion of this item, if an additional item should be placed on a future agenda to discuss the expenditures and status of the other City of Ukiah MSR's that remain incomplete. ❑ Budgeted FY 10/11 ❑ New Appropriation ❑X Not Applicable ❑ Budget Amendment Required Amount Budgeted Source of Funds (title and Account Number Addit. Appropriation Requested city [date to be determined] Mendocino Local Agency Formation Commission 200 South School Street Ukiah, CA 95482-4828 AITACHMEPJT'-J- aj Ukialt Re: Draft wastewater municipal service review for City of Ukiah and Ukiah Valley Sanitation District Dear Commissioners: The City Council of the City of Ukiah requests LAFCO to agendize and consider this request concerning the draft Wastewater Municipal Services Review covering the City of Ukiah and the Ukiah Valley Sanitation District, dated April 2010 ("draft MSR"), which the City received on June 7, 2010, from the LAFCO Executive Officer. The draft MSR was not developed in accordance with the agreement among City of Ukiah, the Sanitation District and LAFCO, and the document is so deficient that it should be disregarded. A new draft based on the approved consultant's work, should be used as a basis for the document. The Agreement: At a joint meeting of the Ukiah City Council and the Ukiah Valley Sanitation District Board of Directors on October 17, 2007, the City Council and the Board agreed to jointly fund a wastewater MSR to be prepared by a consultant. The joint funding was expressly based on LAFCO, the City and the District developing the MSR as a joint effort. The consultant would be selected by a committee, consisting of a City Council member, a Board member, a City staff member, and the LAFCO Executive Officer. They agreed to jointly develop an RFP which would be presented to and approved by the LAFCO Board within three weeks. (Meeting minutes attached.) The City Council and the Board were concerned that the preparation of the MSR was taking too long and this process would speed up the preparation of the MSR. A committee was selected to review and approve an RFP. The RFP approved by the committee (while never submitted to or approved by LAFCO) limited the scope of work to preparing an MSR only addressing the determinations required by Gov't Code §56430. The RFP states that the consultant was to prepare a preliminary administrative draft MSR with appropriate findings and recommendations. The preliminary administrative draft was to be reviewed twice by an administrative committee composed of the LAFCO Executive Officer, a District representative and a City representative. The administrative draft would be prepared in response to comments from the administrative committee. (Copy of RFP attached.) 300 SEMINARY AVENUE UKIAH, CA 95482-5400 Phone# 707/463.6200 Fax# 707/463-6204 Web Address: www.cityofukiah.com Letter to Mendocino Local Agency Formation Commission Page 2 Subject: Wastewater MSR Date: To be Determined On March 5, 2008, the City Council appointed its representative to the Administrative Committee. The ASR (attached) reported that Frank McMichael had asked the UVSD Board to appoint its member. LAFCO approved a contract with the selected consultant, PMC, at its meeting on May 5, 2008. The Executive Officer represented that PMC was recommended by the "selection committee." (LAFCO minutes of meeting attached.) Violations of the Agreement: No administrative committee was used in the preparation of the draft MSR. The preliminary administrative draft MSR prepared by PMC was never reviewed by such a committee and, in fact, the City was never told that PMC had filed a preliminary draft MSR with the Executive Officer. Instead, almost two years after LAFCO approved the contract with PMC, a draft MSR has been submitted to the City for review with a request for comments in 30-45 days. The draft MSR was prepared without prior consultation with an administrative committee, and it is not clear that the draft is based on the work of the consultant hired to prepare the report, despite the payment by the City of $28,775 from the City/District sewer fund for the services of the approved consultant. Moreover, the administrative draft presented to the City contains a lengthy (78 pages, including the appendix) financial analysis (Chapter 9) prepared by a different consultant who was hired without the City's knowledge but apparently paid with money paid to LAFCO to cover PMC's fees.I The draft circulated for comment does not contain any of the determinations required for MSRs. Deficiencies of administrative draft MSR: From the City's perspective the problems with the administrative draft MSR which has been submitted to the City for comment are so fundamental that it would serve no useful purpose to provide a line by line critique. Instead, LAFCO should order its Executive Officer to comply with the agreement under which the City and the District agreed to jointly fund the preparation of a wastewater MSR for both agencies by submitting the preliminary administrative draft prepared by PMC to an administrative committee, ' The City strongly objects to Chapter 9. It purports to address the financial ability of the City and the District to provide wastewater services within their respective service areas, a relatively simple analysis. It does this in a convoluted and unnecessarily detailed 58 pages plus a 20 page appendix. The need for this additional consultant was not discussed with an administrative committee and the decision to retain such a consultant or to select this particular consultant was not part of a joint effort by the City, the District and LAFCO. The analysis spends much of its time criticizing the City's financial records. There is no indication that the consultant who prepared this portion of the MSR attempted to discuss these issues with the City's Director of Finance. 2 Letter to Mendocino Local Agency Formation Commission Page 3 Subject: Wastewater MSR Date: To be Determined consisting of the Executive Officer, a City Council member, a City staff member, a District Board member and the District General Manager. The consultant should be directed to revise the preliminary administrative draft based on the comments of the administrative committee. The Executive Officer should be prohibited from revising or re-writing the draft MSR that is presented to LAFCO for approval. The following are among the City's concerns with the draft MSR which was submitted to it for review: 1. The draft fails to disclose who prepared it and, for the most part, does not include references to the sources of information upon which it relies.2 Compare the draft with any of the MSR's prepared for the Sonoma County LAFCO, which are available on its website: hqp://www.sonoma-county.org/lafco/municipal service reviews.htm. The Cloverdale MSR is attached for convenient reference as one example. All of these MSRs clearly identify the author and provide references for virtually all of the factual statements they contain. 2. The MSR is far too long and contains much unnecessary detail (some of which is inaccurate). Compare the 28 page Cloverdale MSR prepared for all of the city services, not just wastewater, with the 181 page draft MSR, which does not even include the determinations required by Gov't Code §56430. This same unnecessary length and detail is repeated in each chapter of the draft MSR. As examples, compare Chapter 1 explaining LAFCO's role and the purpose and requirements for MSRs, consisting of 9 pages, with the Cloverdale MSR, which covers the same subject in one page. Chapter 2 of the draft MSR, describing the District and the City, contains 19 pages. The comparable subject is addressed in the Cloverdale MSR in three short paragraphs in less than 1/2 page. The draft MSR is redundant. For example, after spending 8 pages (pp. 21-29) describing the City governance in Chapter 2, the MSR spends another two pages (pp. 34-35) covering the same subject in Chapter 3. Examples of unnecessary information that contribute to the excessive length include a discussion of conflict of interest, economic interest and ethics policies (pp. 41-42), audits (pp. 42-44), complaints, including a summary of a 2007 grand jury report (pp. 44-45), and a River Watch law suit (p. 46), previous (outdated) growth projections (pp. 63-65), lengthy description of Sewer System Management Plan (pp. 55-59), joint ad hoc committee (pp. 53-54), description of City Agenda Summary Report in March 2007 approving phase 1 of a two phase study of the sewer ponds by Balance Hydrologics (pp. 86-87). 2 It contains footnotes referencing an information source in some sections, but there are more fact or opinion statements without reference than with reference. See, e.g., Chapter 5, population and growth (pp. 60-65); fn. 13 (p.82), citing "Statement by LAFCO Executive Officer based on his experience with gravel operations in the River while working for Parnum Paving"; and fn. 34-35 (p.84) referencing "Observations by LAFCO Executive Officer while employed by Parnum Paving, Inc., Letter to Mendocino Local Agency Formation Commission Page 4 Subject: Wastewater MSR Date: To be Determined 3. The draft MSR contains many expressions of opinion and speculation which are unsupported by facts or relevant expertise. From the City's perspective these opinions also are often biased toward a particular policy outcome. The following are some examples: 1. "If monthly fee-for-service are proposed to be raised to cover the cost of the expansion portion of the WWTP, it will likely require a two-thirds vote of the ratepayers as the increased fees will not be going to pay the reasonable operational costs for present service recipients but for future service recipients; it would thus become a tax." (p. 52.)3 2: Most of the statements in boxes beginning with the word: "Note." (See pp. 54, 63, 69, 73, 75, 88, 89, 91, 94, 96, 97, 98, 107, 110, 113, 114, 118, and 130.) 3. the limited availability of wastewater treatment capacity will be a strong limiting factor on the City's sphere of influence and the City's ability to annex." (P. 61.)4 4. The draft MSR purports at pp. 47-50 to describe the 1995 Participation Agreement between the City and the District. It states that the initial agreement was finalized in July 1995. In fact, that agreement was an amended restatement of previous participation agreements between the City and the District, dating back to 1958. The discussion briefly describes the participation agreement, but most of the text is a critique of the agreement and of the City's performance under the agreement.5 5. After a flawed discussion called "Detachment Fiscal Analysis" (pp. 109-110), item 8 reads: "A more appropriate discussion may be that the District and the City's wastewater functions should be combined into one agency." 6. Speculation about the future of the percolation ponds and water reclamation 3 The City upon the advice of its City Attorney strongly disagrees with this statement. Monthly sewer fees are "property related fees," not a "tax," as defined in Proposition 218. There is an issue of proportionality under Proposition 218, but the City and the District have considerable discretion in how they allocate costs of increasing capacity among ratepayers. At the same time both agencies are legally obligated to set rates in compliance with the bond covenants to produce sufficient revenue to pay the debt service on the bonds. 4 This opinion is based on the current capacity of the WWTP. The City doesn't agree that the opinion is supported by the current capacity. However, the plant was intentionally designed to allow for future increases in capacity at a relatively low cost which is not acknowledged or discussed in the MSR. 5 The City strongly disagrees with the critique, which, among other things, overlooks the provision in Amendment No. 2 to the Participation Agreement which obligates the parties to review annually the allocation of new connections and to revise the allocation based on actual experience or changed circumstances, such as annexations or detachments. Moreover, as the draft MSR acknowledges, the parties are legally obligated to comply with the agreement for the 30 year term of the bonds issued to pay for the upgrade and expansion of the WWTP. This makes a critique of the agreement unnecessary and irrelevant to the determinations required in an MSR. Finally, this approach in the MSR, which takes sides in past and pending disputes between the District and the City, will make it very difficult for LAFCO to approve the wastewater MSR further delaying the adoption which has already been delayed 1 '/2 years beyond the statutory deadline and over 2 '/s years since the City and the District agreed to fund the MSR in order to expedite its preparation. 4 Letter to Mendocino Local Agency Formation Commission Page 5 Subject: Wastewater MSR Date: To be Determined at the WWTP. (Pp. 88-89.) All of the dubious speculation about the geology and hydrology of the percolation ponds does not belong in the MSR and is not based on the analysis and opinion of qualified experts. At most, the MSR could report that the City has completed a study of the percolation ponds and has submitted it to the Regional Water Quality Control Board as required by the waste discharge requirements for the WWTP. These are only some examples illustrating why the City does not want to engage in a line- by-line critique of the report in a response to a request from the Executive Officer. The draft MSR appears to the City to have resulted from the Executive Officer assuming control over its preparation. Given the tone and substance of the MSR, the City has concluded that the LAFCO Board should intervene directly and return the development of a proposed wastewater MSR to the approved consultant and administrative committee. LAFCO should then consider for adoption the proposed MSR prepared by the consultant in consultation with the administrative committee. The Executive Officer should not be part of any additional effort to write the Wastewater MSR, with his role limited to that of participating in the committee. Sincerely, Jane A. Chambers City Manager Enclosures CITY OF UKIAH Minutes SPECIAL JOINT MEETING OF THE UKIAH CITY COUNCIL AND UKIAH VALLEY SANITATION DISTRICT CIVIC CENTER COUNCIL CHAMBERS 300 Seminary Avenue Ukiah, CA 95482 October 17, 2007 4:00 p.m. 1. ROLL CALL The Ukiah City Council met at a Special Joint Meeting with the Ukiah Valley Sanitation District on October 17, 2007, the notice for which being legally noticed on October 12, 2007. Mayor Rodin called the meeting to order at 4:04 p.m. Roll was taken with the following Councilmembers present: Thomas, Crane, McCowen, Baldwin, and Mayor Rodin. Absent None. Staff present: City Manager Horsley, City Attorney Rapport, City Clerk Brown. Also present representing the. Ukiah Valley Sanitation District were Directors Wattenburger, Delbar, Crane, as well as Paul Cayler, County Counsel Jeanine Nadel, and Recording Secretary Kristy Furman. Consultants present: Mary Grace Pawson, Charley Gordon, Winzler & Kelley. Also present was LAFCO Executive Officer Frank McMichael. 2. ITEMS OF DISCUSSION a. Discussion and Possible Action Reciarding Options for Completion of the Mandated Municipal Service Review (MSR) as Required by State Law City Manager Horsley presented the item and briefly commented: • There are associated timelines for completion of MSRs for the UVSD and City. • LAFCO is unable to assist with the process. • A possible option would be for the UVSD and the City's sewer portion of the MSR to be worked on as a joint project/effort with the City putting out an RFP allowing a consultant to complete the work. • The product once approved by the UVSD board and City can be submitted to LAFCO for review as a draft MSR. • Consultant Winzler & Kelley has completed MS Rs for other agencies. Mary Grace Pawson from Winzler & Kelley summarized the details of the proposed option: • Winzler & Kelley is experienced with formulating technical analyses including MSRs and if hired, can complete MSRs for the UVSD and the City, as a shared project. • The mandated MSR is'service specific.' • The document is similar to crafting a Sewer System Master Plan where a MSR is more accessible to decision makers, land use planners, and to the public than the typical a Sewer Master Plan that is directed towards a more technical audience. While the MSR is not a land use plan, it must effectively correlate with the City and County General Plan land use visions/goals and policies. • The document will contain findings and determinations that are required in the analysis, as well as other related technical sources of information to correspond with the intensive sewer plant upgrade to maximize efficiency. The challenge will be to present the technical information within the context of LAFCO's requirements/framework and to work with their needs. • The needs and deficiencies, available options, including growth and population' projections, Minutes of Special Joint Meeting October 17, 2007 Ukiah City Council & Ukiah Valley Sanitation District Page 1 potential financial constraints/opport unities, opportunities for rate restructuring, City's financial status, level of service that. can be provided, bond ratings, cost of service allocation information for the different user groups, staffing of the facility, and/or other relative information required by the MSR concerning the sewer system infrastructure will be specifically addressed in the analysis. The strategy involves the accumulation of pertinent information and extracting the most relative data into one well-packaged MS R for ease of accessibility and understanding. Likely the most complicated portion of the MSR for the UVSD and the City is related to government structure options, public policies as to coordination of rates and other issues, and the evaluation of management efficiencies as a service provider, since the UVSD and City have boundary issues in terms of properties that were annexed to the City and not 'de- annexed' from the UVSD. The MSR process is a LAFCO process and it is this agency's responsibility to conduct the reviews, which must be made clear in the RFP's. The City's information would be presented as the joint operator for both the City and UVSD. Mary Grace Pawson supports the use of the 1995 General Plan document since it has been through the CEQA review process as a relevant basis for the MSR. It was noted the MSRs and Sphere of Influence are synonymous, and in order to produce effective documents the area examined must be clearly defined. City Attorney Rapport stated the areas have to be identified for the growth and population projections, which for the City might be a projected sphere of influence. Mary Grace Pawson commented the boundaries established by the Sphere must be able to support the existing infrastructure, and therefore, research into possible modification of the City's sphere may be necessary. • LAFCO Executive Director McMichael stated the draft MSR is first reviewed by the public/affected agencies and subsequently followed by a public hearing where updates to the Sphere of Influence are initiated before the MSR can be finalized. He clarified there is nothing in the statute requiring the City and other agencies to go through these processes, but LAFCO policy presumes that it will work in cooperation with the relevant agencies to accomplish the processes consistent with State regulations. • Councilmember McCowen commented the process would be simplified if the City agrees that approval is based on the 1995 Sphere of Influence as identified in the 1995 General Plan for the waste water/sewer MSR, the water MSR, and the general service review. • Councilmember Crane stated we are meeting today because the UVSD contends/supports that the City and District work to together to complete the MSR process. • Councilmember Baldwin inquired whether LAFCO has the staff and time to provide the oversight necessary if the two agencies were to fund a consultant. Public Comment Opened: 4:53:10 PM Public speaking to the item: Lee Howard, and Frank McMichael. Public Comment Closed: 5:28 p.m. Mayor Rodin recommended staff draft a letter to LAFCO expressing the City's desire/willingness to cooperate with LAFCO on moving forward with completion of the MSR. Mary Grace Pawson suggested the proposed letter also maintain that the City will assist with the funding of a consultant. Director Wattenburger supports taking action for the hiring of a consultant and proceeding with the process as a joint effort. Minutes of Special Joint Meeting October 17, 2007 Ukiah City Council & Ukiah Valley Sanitation District Page 2 Councilmember Crane supports moving forward. Director Delbar agrees the decision-making process needs to move forward and anticipates that clear direction be given so that the matter can be agendized for the next LAFCO meeting whereby the LAFCO Commission can approve the RFP. Councilmember McCowen commented both the District and City could designate a member who, in addition to staff, would be involved in the discussions with the Executive Director of LAFCO. Director Delbar concurred. Mayor Rodin agreed that Sphere boundaries must be identified before MSRs can be completed. Councilmember Thomas recommends Councilmember McCowen serve as the designated member to participate in the discussion with LAFCO concerning meeting the State deadline of providing a MSR. Mayor Rodin supports establishing at least the minimum requirements necessary fora MSR, which can be accomplished in the RFP process for LAFCO to review before it is sent out. Director Wattenburger will be out of State and recommended Director Crane be his representative relative to a joint meeting. City Attorney Rapport agreed Councilmember/Director Crane could participate as a representative in joint meetings. Councilmember McCowen stated funding can come from the Fund 612, Joint Operating Account, if we are proceeding as a joint venture. City Attorney Rapport summarized the goal is clear and the directive by general consent of the City Council is to draft an RFP to present to LAFCO within three weeks; and, if it is necessary for the District Board and Council to meet again before then, to call a special meeting. 3. OTHER BUSINESS a. Set the next Joint Meeting of the Ukiah City Council and Ukiah Valley District The next joint meeting was scheduled for October 25, 2007. 4. ADJOURNMENT There being no further business, the meeting adjourned at 5:30:59 PM. Linda Brown, City Clerk Cathy Elawadly, Transcriptionist Minutes of Special Joint Meeting October 17, 2007 Ukiah City Council & Ukiah Valley Sanitation District Page 3 LOCAL AGENCY FORMATION COMMISSION OF MENDOCINO COUNTY REQUEST FOR PROPOSAL FOR WASTEWATER MUNICIPAL SERVICE REVIEW FOR CITY OF UKIAH AND UKIAH VALLEY SANITATION DISTRICT 1. REQUEST FOR PROPOSAL The Local Agency Formation Commission of Mendocino County ("LAFCO") is seeking the services of a qualified and experienced consultant to prepare a combined Municipal Service Review ("MSR") for wastewater treatment in accordance with the requirements of Govermnent Code Section;56430 for the City of Ukiah ("Ukiah" or "City") and Ukiah Valley Sanitation District ("UVSD" or "District"). G.C. Section 56430 requires LAFCO to complete MSRs for the services provided by local governments in Mendocino County, in order to establish or update spheres of influence ("SOI") in accordance with Government Code §56425. II. AGENCY DESCRIPTIONS Mendocino LAFCO LAFCO serves as the local agency formation commission for Mendocino County pursuant to the Cortese-Knox- Hertzberg Local Government Reorganization Act (Government Code Sections 56000 et seq.). There are 50 independent special districts and four cities in Mendocino County. Mendocino LAFCO is comprised of seven members; two members appointed by the Board of Supervisors, two members from cities appointed by the City Select Committee, two members elected by the districts and one public member appointed by the other six members. In addition each category has an alternate. The LAFCO Executive Officer functions as the primary analyst and developer of reports and studies. City of Ukiah The City of Ukiah is a full service, general law city; it is approximately 4.2 square miles in size with approximately 15,500 inhabitants. It has a five person city council and a five person planning commission. One of the City Council members is an Alternate Commissioner to LAFCO. The City operates its own police department, fire department and electrical, water and wastewater utilities. It owns and operates an airport, electrical distribution facilities and interests in power generating facilities, including a hydroelectric generating plant at Lake Mendocino, a water treatment plant, a wastewater treatment plant ("WWTP"), a golf course, a conference center and a museum. It is the economic and social-cultural anchor for the larger Valley community. Ukiah Valley Sanitation District The UVSD is a County Sanitation District formed under Health and Safety Code Sections 4700 et seq. with a three member Board of Directors ("Board") consisting of two LAFCO Wastewater RFP Page 1 of 6 Supervisors appointed by the Board of Supervisors and one Councilmember appointed by the City of Ukiah. Of the two Supervisor members, the Chair of the Board is an Alternate Commissioner to LAFCO and the other Director/Supervisor is also a LAFCO Commissioner. The UVSD was formed in 1954 by the Board of Supervisors for the purpose of providing sewage facilities for the unincorporated areas surrounding the City of Ukiah. The District owns a collection system but shares the use of the City's WWTP via a Participation Agreement ("PA"). Under the PA, the City operates, maintains and repairs the District's collection system. The annual costs for the maintenance, operation, expansion, upgrading, administration, insurance and financial services of the combined City-District wastewater collection and treatment system are shared between the City and the District proportionally based on the number of sewer service units in each. A map, showing the Ukiah City limits, its proposed Sphere of Influence ("SOI") as described in the City's General Plan, last updated in 1995, and the boundaries of the District is attached as Exhibit A. Information provided in this study will be used to support the determination of the City's SOI but will not be the only information used for determining the City's SOI. Currently there is no proposed or adopted SOI for the District beyond its existing boundaries; information provided in this study will be used to recommend and assist the determination of a SOI for the UVSD. III. MUNICIPAL SERVICE REVIEW REQUIREMENTS Gov't Code §56430 requires that LAFCO complete a MSR to develop information for establishing or updating spheres of influence as required by Gov't Code Section 56425. The MSR must be completed before or in conjunction with the adoption or updating of SOIs. Section 56430 requires LAFCO to prepare written statements in the following areas: (1) Infrastructure needs or deficiencies; (2) Growth and population projections for the affected area; (3) Financing constraints and opportunities; (4) Cost avoidance opportunities; (5) Opportunities for rate restructuring; (6) Opportunities for shared facilities; (7) Government structure options, including advantages and disadvantages of consolidation or reorganization of service providers; (8) Evaluation of management efficiencies; and (9) Local accountability and governance. Section 56425 requires additional determinations. These requirements for written determinations provide direction for the form and content of the study. Guidance for the preparation of MSRs is contained in the Service Review Guidelines prepared by the Governor's Office of Planning and Research which is to be used for this MSR as appropriate. A standardized report format for MSRs is available from LAFCO. IV. DATA COLLECTION AND INTERPRETATION The consultant is expected to use existing information and other information gathering processes, such. as interviews, surveys, other research, engineering reports, audit reports, LAFCO Wastewater RFP Page 2 of 6 state department reports and permits, industry best practices, UVSD and the City agreements, approved or proposed SOIs for the affected agencies, LAFCO policies and county and city general and area plans and any other processes as thought relevant and appropriate. The City recently approved a fee study leading to revised sewer fees for the City and UVSD, which now have the same fees and fee structure. It is also currently constructing a $57 Million upgrade and expansion of its WWTP. In addition, the City and UVSD have been developing a sewer main and lateral inspection and repair program to reduce infiltration and inflow into the sewer collection system. A substantial amount of information was compiled for purposes of these projects which are available to qualified consultants to aid in the preparation of proposals and the MSRs. A list of available documents can be obtained from the LAFCO Executive Director. These documents will be available for review and ordering during the week of December 10-14, 2007 by appointment with the Executive Officer. V. SCHEDULE The MSR is needed for SOI determinations which Government Code Section 54625 requires LAFCO to complete by January 1, 2008. LAFCO recognizes this deadline will not be met; however, the goal is to complete the MSR as soon as is reasonably feasible, taking into account the consultant's normal work hours. Per the guidelines, the consultant should submit a work plan and time schedule for the project; it should not include overtime or other costly measures to accelerate the schedule for completing the work. VI. PROCESS Preparation of the report will include the following steps: 1. Data collection processes as described in IV above and other means as thought appropriate. 2. Consultation with agencies, stakeholders and public as necessary 3. Interpretation and analysis 4. Production of a preliminary Administrative Draft MSR with appropriate findings, determinations and recommendations for review by an Administrative Committee composed of the LAFCO Executive Director, a District representative and a City representative. 5. Preparation of an Initial Draft report in response to comments and direction from the Administrative Committee. 6. Presentation and review of Initial Draft report in a public workshop conducted for the LAFCO Commission, UVSD Board, Ukiah City Council and the public. 7. Preparation of Final Draft report addressing comments from LAFCO Commission, UVSD Board, Ukiah City Council, other interested agencies and public, including findings, determinations and recommendations. 8. Presentation and review of Final Draft report to Commission at a public hearing for adoption. LAFCO Wastewater RFP Page 3 of 6 9. Preparation of a Final Report and determinations as adopted by the Commission to include any changes required by the Commission at the public hearing. VIL MEETINGS LAFCO will provide locations for all meetings; the proposal should at a minimum include: 1. Meetings with Executive Officer as needed. 2. At least 2 meetings with the Administrative Committee while collecting information and preparing the analysis. 3. Presentation and participation in at least 3 public hearings or workshops. 4. A basis for charging for additional public meetings as may be needed. 5. The proposal may include options and alternatives regarding meetings. VIII. DELIVERABLES The MSRs shall be prepared in the format as provided by LAFCO. The current format is available from the LAFCO Executive Director, contact as specified below. The report shall provide the required information and be organized to facilitate the determinations required by Government Code Section 56425 for any recommended SOI for the UVSD. All deliverables shall be submitted in hardcopy and electronic format (Word or PDF) and shall include the following: 1. Administrative Draft for review committee (five bound copies plus reproducible copy) 2. Initial Draft for workshop (30 bound copies plus reproducible copy) 3. Final Draft for public hearing (30 bound copies plus reproducible copy) 4. Final MSR as adopted at public hearing (10 bound copies plus reproducible copy) IX. CONTENT OF PROPOSAL The proposal must respond to this request and include, but not be limited to, the following: 1. General statement by the firm or individual about the proposal, including an understanding and general approach to accomplishing the work as outlined. The statement should demonstrate the experience and qualifications to perform the required work. 2. A description of the firm or the individual's qualifications to perform the work within budget and in compliance with the proposed schedule. 3. Identification and designation of the individuals who will actually perform the work, including resumes documenting their experience and competence to perform the work, including the contact person and his or her contact information. 4. A list of references, in particular, clients for whom the consultant has prepared MSRs involving sewage collection and treatment systems. Note: For those firms that are invited to interview, a sample of a comparable study or report prepared by the firm will be required. LAFCO Wastewater RFP Page 4 of 6 5. Identification of any subcontractors or joint venturers that would participate in performing the work with all of the above pertinent information for each such subcontractor or joint venturer. 6. General time line and workplan with stages of work required to complete the documents in the most efficient and timely manner. 7. A cost proposal that shall set forth a not-to-exceed fee estimate. The cost proposal shall be prepared as a spreadsheet divided by the tasks set forth in Section VI. Effort by task shall be set forth by position, estimated hours per position and hourly rate. Include estimated expenses and per diem per task; each task shall have sub-total which sums to a project grand total. 8. The proposal shall contain a statement that the proposal will provide the deliverables outlined in Section VIII and is valid for ninety days. X. OPTIONAL PRE-PROPOSAL MEETING Interested consultants are encouraged to attend a pre-proposal meeting to be held on December 19, 2007, at 10:00 am at City of Ukiah Conference Center, Chenin Blanc Room, 200 S. School St. Ukiah, CA. 95482. At the meeting, the Administrative Committee will provide information and answer questions about issues regarding wastewater in the City and the UVSD which may be helpful in preparing a focused proposal. No statements at the meeting by the committee or others will be deemed to alter the terms of this RFP, unless included in a formal written addendum to the RFP issued after the meeting. LAFCO will respond in writing to any written questions submitted by interested consultants before the meeting. Copies of any written responses to questions from interested consultants will be circulated to all consultants who have requested this RFP. XI. PROPOSAL EVALUATION PROCESS The Administrative Committee will review the proposals, evaluate submissions, contact references, and rank the proposals. Based on its evaluation of the proposals, the Administrative Committee will recommend a select number of the consultants submitting proposals for interview by an Evaluation Committee, which will include the Administrative Committee and an elected official from the UVSD Board and the City Council. The Evaluation Committee may conduct additional negotiations with one or more of the consultants interviewed and will recommend the award of the contract to the LAFCO Commission. XIL CONSULTANT SELECTION The following attributes will be considered in determining the award of the contract: 1. Responsiveness and quality of proposal. LAFCO Wastewater RFP Page 5 of 6 2. Expertise and experience in developing MSRs, with special emphasis on sewage collection and treatment systems. 3. Ability to produce a clear, well-researched and definitive product. 4. Ability to work with agencies, stakeholders and other pertinent parties. 5. Cost. XIII. ADDITIONAL INFORMATION Contract Provisions LAFCO reserves the right to reject any and all proposals, waive any irregularity in the proposals and/or conduct negotiations with any firms, whether or not they have submitted a proposal. The proposed contract, subject to modification in response to a scope of work or other provisions in a proposal, is attached as Exhibit B. All proposals must note any exceptions to standardized contract. Insurance Consultant must satisfy the insurance requirements set forth in Standard Services Contract Exhibit C. XIV. SUBMITAL 1. Proposals must be submitted to Local Agency Formation Commission of Mendocino County, Attention: Frank McMichael, Executive Officer, 200 S. School St., Ukiah California 95482 by no later than 3:00 pm January 25, 2008. Five copies of the proposal plus a reproducible copy must be submitted. 2. No faxed or postmarked proposals will be accepted. Any proposal received after the deadline will not be considered. 3. All proposals shall be submitted in a sealed envelope that is clearly marked with the title of the RFP. 4. All proposals, whether selected or rejected, shall become the property of LAFCO. 5. Proposals shall be signed by an authorized employee or officer in order to receive consideration. 6. LAFCO is not responsible for proposals delivered to a person/location other than that specified herein. Any questions and requests for information in order to prepare the proposal should be directed to: Frank McMichael, Executive Officer, LAFCO, Telephone: 707-463-4470; Email: frankmcmichael@mendolafco.org. LAFCO Wastewater RFP Page 6 of 6 LAFCO OF MENDOCINO COUNTY WASTEWATER MSR REPORT FORMAT OVERVIEW The Commission has indicated a desire for a standardized format for SOI/MSR reports. Their reasoning is that with the number of SOI/MSR reports that they are required to review, it would be helpful, given their limited time as volunteers, to have a familiar structure to the report so that they can more readily concentrate on the contents and information in the report. At the same time they recognize that a "cookie cutter" approach may not work for all agencies or services, thus they are willing to allow some flexibility. The below format for the wastewater MSR is adapted from LAFCO's general format. Suggestions or recommendation for a different approach can be made to the Executive Officer. General Requirements Reports shall be written so as to be clearly understood by all affected agencies and the public. Reports shall include maps (81/2 X 11 & 17 X 22 as appropriate), charts, graphs and other depictions as appropriate for the information being presented. Pages should be a standard 8'/2" x I I" format; the font shall be Times News Roman and the primary font size shall be no less than No. 12. General Outline All reports and recommendations relating to municipal service reviews should be presented according to the following format. (Information content should include the bulleted points as appropriate) 1. Table of Contents 2. Foreword 3. Executive Summary Section • LAFCO's responsibilities, Sphere of Influence, Municipal Service Review and Maximum Service Area • Summary of Significant issues and conclusions • Description of public participation process • Other as thought appropriate 4. LAFCO Section • LAFCO responsibilities and information as provided by LAFCO Information Section to include the followin coverage A. Demographics • Growth and Population • Present and projected population in five year increments over 20 year time frame • Land use and significant growth areas • Impact of Ukiah Valley Area Plan (UVAP) • Projected short and long term demand • Other as thought appropriate B. Information by agency and by system for the City of Ukiah/UVSD system to include: • Description of Existing Services and providers • Description of existing system • Service area and demand • Present level of service • Present rates • Other as thought appropriate C. Infrastructure by agency and by system to include: • Capacity analysis, condition, availability, quality, correlation with needs and plans, etc. • Sufficiency for present and projected needs • Adequacy to meet current and known future state and federal requirements • Age and condition of facilities; Identification of deficiencies; Infrastructure upgrades; etc. • Plans for Expansion/upgrades, Capital Improvement Plans, Financial Plans, etc. • Reserve capacity • Other as thought appropriate D. Financial Circumstances by agency and system to include: • Present Financial condition and practices by agency and system • Finance plans; Bond ratings; Joint finance projects • Revenue sources • Future service needs versus resources available • Constraints and Opportunities by agency and system • Other as thought appropriate E. Cost Avoidance Opportunities • Current practices • Duplication • Inefficiencies relating to overlapping Services • Administration to operation costs • Sharing of equipment, buildings, personnel • Costs to public • Economies of scale • Transferring service obligations • Cost reduction opportunities • Inter-agency cooperation • Other as thought appropriate F. Opportunities for Rate Restructuring • Current rate structure • Timely rate reviews • Rate setting methodology • Conditions that will impact future rates • Rate variances • Tax revenues/services • Revenues/services ratio • Rate comparisons • Future special assessment districts? • Reorganization and impact on rates • Other as thought appropriate G. Opportunities for Shared Facilities • Currently shared resources, facilities, personnel and systems • Opportunities for expanded sharing • Other as thought appropriate H. Government Structure Options • Review of Alternatives o Elected board as allowed by Principal Act o Creation of one unified agency 2 o Other? • Feasible and reasonable options • Previous restructuring efforts-Recommendations of Valley Wide Task Force • Opportunities for and obstacles to restructuring • Advantages and disadvantages • Detachment of overlap areas-general overview of process, cost, impact, etc. • Other as thought appropriate 1. Evaluation of Management Efficiencies • Review of current management structure • Recommendations for change of management structure • Necessary staff (Need for general manager) • Adequate training for staff • Advance planning • Participation of public in planning processes • Proper development of policies • Availability of written policy and procedures • Compliance with accepted standards and best industry practices; Maintenance of adequate reserves; • Inter-Agency relations, communications and coordination • Other as thought appropriate Local Accountability and Governance • Visibility and accessibility of governing body; Accessibility of staff; Decision making process; Governing body selection process; Adherence to law both in principal act and general requirements of law such as Brown Act, CPRA, Contract Codes and other; • Public access and interest • Budget Process available to public • Other as thought appropriate 6. SOI and MSA Information Section A. Recommendations by agency B. Discussion as appropriate 7. Determinations for combined system and for each agency A. Determinations as required by G.C 56430 B. Determinations as required by G.C. 56425 (will depend upon SOI recommended) 8. Appendix Resolution of Approval (Adopted Report) • Participation Agreement and associated documents • Principal Act • Other documents as appropriate 3 ITEM NO. 10a DATE: March 5, 2008 AGENDA SUMMARY REPORT SUBJECT: APPOINTMENT OF CITY COUNCILMEMBER TO THE INTERVIEW PANEL FOR SELECTION OF A CONSULTANT TO PERFORM THE MUNICIPAL SERVICES REVIEW (MSR) FOR THE JOINT CITY AND SANITATION DISTRICT SEWER SERVICE THROUGH LAFCO Summary: At a prior joint meeting, the City Council and the Sanitation District Board discussed with Frank McMichael the process for performing a combined joint MSR for the sewer system for both entities. Mr. McMichael indicated that he would be soliciting proposals from consultants to perform the required work. A staff subcommittee, which included Mr. Kennedy from the City, has reviewed the initial proposals.. Mr. McMichael has recently asked the Sanitation, District Board to nominate one elected official and they have done so. Now he would like for the Council to name one elected official to the committee to interview the finalists and to recommend the consultant to the LAFCO Board. LAFCO would like for these interviews to take place prior to March 17th. The City agenda had already been posted for March 5th but did allow time for an addendum title to be posted and still meet the Brown Act deadline for posting. Thus, this staff report is being distributed after the packet has gone out. RECOMMENDED ACTION: That the City Council appoint a member to serve on the interview and recommendation panel for a joint MSR for sewer services review. ALTERNATIVE COUNCIL POLICY OPTIONS: Consider doing a separate MSR for City Sewer which could delay the start of the process and would require the City to coordinate separately with the Sanitation Districts MSR process. Citizen Advised: Requested by: Mayor Crane Prepared by: Pat Thompson, City Manager Coordinated with: Attachments: APPROVE . ~4~ Pdt Thompson, Interim City Manager MINUTES May 5, 2008_ LOCAL AGENCY FORMATION COMMISSION MENDOCINO COUNTY The Local Agency Formation Commission convened a regular meeting on Monday, May 5, 2008 at 10:00 a.m. at the City of Ukiah Council Chambers, 300 Seminary Ave., Ukiah, CA. AGENDA ITEM 1- CALL TO ORDER / ROLL CALL Chairman Melo called the regular meeting of the Local Agency Formation Commission of Mendocino County to order at 10:00 a.m. The following Commissioners were present and seated: Commissioners Delbar, Kisslinger, Wattenburger, Oslund, Ruff and Chair Melo. Also present were Alternate Commissioners McCowen, Ward, Orth and Executive Officer McMichael. Commissioner Wattenburger and Alternate Commissioner Smith had previously indicated their expected absence. AGENDA ITEM 2 - PUBLIC EXPRESSION There was no one in attendance from the public. AGENDA ITEM 3 - APPROVAL/CORRECTION/ADOPTION OF MINUTES Upon a motion by Commissioner Oslund, seconded by Commissioner Ruff the minutes of April 7, 2008 were approved as submitted by the following vote: Ayes: Delbar, Oslund Kisslinger, Ruff and Chair Melo; Nays: None; Abstain: Orth: Absent: Shoemaker and Wattenburger. AGENDA ITEM 4 - PUBLIC HEARING FOR ADOPTION OF FISCAL YEAR 2008- 2009 BUDGET The Commission reviewed the Proof of Publication of Notice of Public Hearing and upon a motion by Commissioner Oslund, seconded by Commissioner Orth the Proof of Publication was accepted by the following vote: Ayes: Delbar, Ruff, Kisslinger, Oslund, Orth and Chair Melo; Nays: None: Abstain: None; Absent: Shoemaker and Wattenburger. Upon direction of the Chair, Executive Officer McMichael reviewed the notification process for the Proposed Budget. After this review, Chair Melo opened the Public Hearing at 10:04 a.m. There was no one in attendance for the public hearing. Seeing no one in attendance, Chair Melo closed the Public Hearing at 10:07 a.m. After closure of the Public Hearing, Commissioner Orth, seconded by Commissioner Oslund entered a motion to adopt the Proposed Budget indicated below as the Final Budget for the Commission for Fiscal Year 2008-2009. The motion was approved by the following roll call vote: Ayes: Delbar, Ruff, Kisslinger, Oslund, Orth and Chair Melo; Nays: None: Abstain: None; Absent: Shoemaker and Wattenburger. Commission's Final Budget Fiscal Year 2008-2009 Line Item Detail Description Amount Budgeted Totals 1 862150 CALAFCO Membership 725.00 2 862150 CSDA Membership 700.00 3 862101 General Liability Insurance--CSDA 3,500.00 4 862181 Audit Services 2,900.00 5 862182 Website-DSL 2,000.00 Minutes Regular Meeting May 5, 2008 1 of 3 6 862060 Communications 1,000.00 7 862184 En ineerin and Plan Services--GIS 2,000.00 8 862194 A-87 Costs (County Services) 3,000.00 9 862183 Commission Counsel 4,000.00 10 862189 Contract Services Office & Staff 99,812.32 11 862239 Special Dept. Expense 1,000.00 12 862250 In County Commissioner Travel 1,000.00 13 862280 ADA Compliance 0.00 14 862253 Out of County Conferences 6,000.00 15 862190 Publication and Legal Notices 500.00 16 862189 56425 and 56430 Mandates [Sphere of Influence (SOI) and Municipal Service Reviews (MSR)] 57,040.00 17 860010 A ro riation for Contingency 7,000.00 18 869991 Legal Reserve 0.00 19 860011 General Reserve 3,000.00 20 Total apportionment Budget FY 08-09 195,277.32 21 Fund Balance Carryover 0.00 22 Total to be apportioned for revenues 195,277.32 23 24 25 Apportionment for County-Cities-Districts Fiscal Year 06-07 Comparison Total Budgeted FY 07-08 65,092.44 225,552.32 26 Fund Balance Carryover FY 07-08 00.00 27 Total Apportionment Budget FY 07-08 195,552.32 28 29 Apportionment for County-Cities-Districts FY 07-08 Reserve to Bud, Reserve Commitment to SOI/MSR Mandated Process FY 07-08 65,184.10 30,000.00 31 Total Budgeted FY 07-08 For SOI/MSR Mandates 87,040.00 32 33 34 Total Budgeted FY 07-08 Balance of Reserves From Prior Fiscal Years Legal Reserves 225,277.32 20,000.00 35 Service Review Reserves 15,000.00 36 Operational Reserves 84,415.00 37 Total 119,415.00 AGENDA ITEM 5-REVIEW AND APPROVAL OF CONTRACT WITH PMC FOR DEVELOPMENT OF WASTEWATER MSR Upon direction of the Chair, Executive Officer McMichael reviewed the written report and the overall process for selection of PMC by the Consultant Selection Committee and the proposed contract. After discussion, Commissioner Kisslinger, seconded by Commissioner Ruff entered a motion directing Chair Melo and Executive Officer McMichael to sign the contract. The motion was approved by the following roll call vote: Ayes: Delbar, Ruff, Kisslinger, Oslund, Orth and Chair Melo; Nays: None: Abstain: None; Absent: Shoemaker and Wattenburger. Minutes Regular Meeting May 5, 2008 2 of 3 AGENDA ITEM 6-DISCUSSION/DIRECTION AS TO LAFCO REQUESTED RESPONSE TO GRAND JURY REPORTS REGARDING CITY OF FORT BRAGG Upon direction of the Chair, Executive Officer McMichael reviewed the two Grand Jury Reports regarding the City of Fort Bragg entitled "Savings for Sunny Day" and "the $10,000 Popsicle Slick" and the draft proposed response letter. After discussion, upon a motion by Commissioner Orth, seconded by Commissioner Kisslinger the Chair was directed to sign the indicated letter and Executive Officer McMichael was directed to forward it to the Grand Jury. AGENDA ITEM 7-REPORTS A. Executive Officer McMichael orally reviewed the written progress report provided to the Commission regarding the MSR process and the monthly expenditure report. B. Commissioner Orth provided a written report entitled "Governance of Change" and spoke of his efforts with two activities/organizations named Renewable Energy and the Mendocino Activists for a Dependable Economy (REMADE) and Independent Green Renewable Energy Economy Now (iGREEN) Commissioner Oslund reported that the City of Willits has had a request from the local Indian casino to provide water and wastewater services for a new casino. She indicated that the City had no water for that purpose but may have the ability to provide wastewater services and that possibility was under review by City staff. AGENDA ITEM 8-ADJOURNMENT Having no further business, the meeting adjourned at 10:53 a.m. Minutes Regular Meeting May 5, 2008 3 of 3 Economic & Planning Systems Real Estate Economics Regional Economics Public Finance Land Use Policy FINAL REPORT CITY OF CLOVERDALE MUNICIPAL SERVICE REVIEW Prepared for: Sonoma Local Agency Formation Commission Prepared by: Economic & Planning Systems, Inc. January 2006 EPS #13023 BERKELEY vaw SACRAMENTO DENVER 2501 Ninth St., Suite 200 Phone: 510-841-9190 va~a Phone'. 916-649-8010 Phone: 303-623-3557 Berkeley, CA 94710-2515 . Fax: 510-841-9208 Fax: 916-649-2070 Fax: 3 03-62 3-9049 www.cpsys.com TABLE OF CONTENTS I. INTRODUCTION ..........................................................................................................1 II. SUMMARY OF SERVICE ISSUES AND TRENDS 2 City of Cloverdale Governance ...............................................................................2 Growth and Development 2 Services 3 III. WATER ........................................................................................................................8 IV. SEWER .......................................................................................................................11 V. STREETS AND TRANSPORTATION .............................................................................13 VI. PARKS AND RECREATION .........................................................................................15 VII. POLICE ..................:...................................................................................................17 VIII. FIRE ...........................................................................................................................20 IX. DETERMINATIONS ....................................................................................................24 LIST OF TABLES AND FIGURES Table 1: City of Cloverdale Municipal Service Providers ..............................................5 Figure 1: Sonoma County Administrative Area Boundaries ..........................................6 Figure 2: City of Cloverdale ............................................................:.................................7 L INTRODUCTION In 1997, the State Legislature convened a special commission to study and make recommendations to address California's rapidly accelerating growth. The Commission on Local Governance for the 21st Century focused energies on ways to empower the already existing Local Agency Formation Commissions (LAFCOs) in California's counties. The Commission's final report, Growth within Bounds, recommended various changes to local land use laws and LAFCO statutes. Assembly Speaker Robert Hertzberg encompassed the recommendations of the Commission in Assembly Bill 2838, which passed into the Cortese-Knox-Hertzberg Local Government Reorganization Act of 2000. The new law endows LAFCO with more responsibilities and more influence to oversee growth in California. One of the major new responsibilities of LAFCO is to conduct comprehensive, regional studies of municipal services (Municipal Service Reviews, or MSRs), in conjunction with reviews of city and district spheres of influence (SOIs). LAFCOs are directed to review and update agencies' SOIs, as necessary, every five years, according to Government Code Section 56425. Section 56430 requires MSRs to be conducted prior to or in conjunction with the sphere updates. MSRs must address at least the following nine factors: 1. Infrastructure needs or deficiencies 2. Growth and population projections for the affected area 3. Financing constraints and opportunities 4. Cost avoidance opportunities 5. Opportunities for rate restructuring 6. Opportunities for shared facilities 7. Government structure options, including advantages and disadvantages or consolidation or reorganization of service providers 8. Evaluation of management efficiencies 9. Local accountability and governance Sonoma LAFCO retained Economic & Planning Systems, Inc. (EPS) to develop the MSRs for cities and special districts in Sonoma County. The process was split into phases; water and sewer service providers and fire protection providers were reviewed in the first two phases, and cities are studied in the third, and final, phase. An initial survey was mailed to each City with a request for documents such as general plans, budgets, and maps. EPS used the completed surveys and supporting documents to write provider profiles and the nine determinations required by law for each provider. The profiles and determinations were submitted to each city for its review. The cities' comments were then incorporated into the report. A\ 13000s \ 13023SoaMSR \Report \ Ci ties \ Cloverdale \ CloverdaW.doc II. SUMMARY OF SERVICE ISSUES AND TRENDS CITY OF CLOVERDALE GOVERNANCE Cloverdale is a General Law city with five City Council members elected at-large. The Mayor is appointed annually by a majority vote of Council members. The Mayor serves as ceremonial head of the city and presides over all City Council meetings. The City Council appoints the City Manager, City Attorney, and members of Boards and Commissions. Additionally, the City Council serves as the Board of Directors for the Community Development Agency. Members of the City Council also serve on various regional government committees and agencies. City Council meetings are held on the second and fourth Wednesdays of each month, at 6:30 p.m. in the Citrus Fair Tea Room at 1 Citrus Fair Drive.l City ordinances, budget, City Council agendas, and other public documents are available for download on the City's web site. The City is working on negotiations for a new Cable Television Franchise Agreement, which might provide an additional means of conveying information to the public. GROWTH AND DEVELOPMENT Incorporated in 1872, the City of Cloverdale is located 80 miles north of San Francisco. The city is 2.7 square miles in size with a population of 8,241 and is among the fastest growing communities in Sonoma County.2 According to Sonoma County Permit and Resource Management Department projections, the population of the City and its Urban Service Area will grow to 11,200 by 2020, an annual increase of 2.9 percent from the 2000 population of 7,052.3 Cloverdale has had the most rapid growth in the County on a percentage basis; growth rates are expected to decline in the future because of market forces and reduced land availability.4 A Growth Management Program, adopted in 1996 by the City. Council, requires an annual inventory of residential development approvals. If this inventory exceeds 200 units, the City must complete an Infrastructure Audit to ensure that the City has the 1 City of Cloverdale Website, «vww.cloverdale.net/government> 2 State Demographic Research Unit, 1/1/2005. Personal communication from Interim City Manager Stephen Holsinger, 30 Nov. 2005 3 Sonoma County General Plan 2020, Overview Draft. <http: \a1ww.sonoma- co_unt g rmd 7 -)2020/draft1/index.him>. 4 Personal communication from Bruce Kibby, Community Development Director, 23 May 2005. 2 PA 13000s \ 13023SonMSR \Report \Cities\ Cloverdale \ CloverdaleTdoc Final Report Sonoma County MSR -City of Cloverdale January 9, 2006 infrastructure capacity necessitated by the planned growth. Development can be limited if there is not enough infrastructure capacity to handle proposed growth.5 The most recent Infrastructure Audit was completed in December 2001.6 Cloverdale's SOI was last updated in 1996. The City is currently updating its 1992 General Plan. The General Plan Citizen Advisory Committee approved the Draft General Plan in December 2005; the plan will go through the EIR process in 2006. The City is also in the process of writing the Alexander Valley Resort Specific Plana The last update of the City's Capital Improvement Plan was adopted in July 2005. This plan is updated annually, as required by Government Code Section 66000 et al. for cities that have adopted Development Impact Fees.8 The City has undergone significant growth in the past five years, requiring new infrastructure and public facilities. In the past year, LAFCO approved the Zanzi Annexation (13.5 acres) and the Sunrise Hills Annexation (12 acres). The City has also been approached by developers regarding three additional annexations: the Alexander Valley Resort (254 acres), the South Industrial Area (50 acres), and the Lile Annexation (23.5 acres).9 Cloverdale is the only city in Sonoma County that does not have a voter-approved Urban Growth Boundary (UGB). City staff state that the development boundaries established in two previous General Plans (1978 and 1993) have remained in place and accomplished the same goals as a UGB. The Citizen Advisory Committee currently working to revise the City's General Plan has discussed the use of a UGB but has taken no action on the issue.10 SERVICES The City of Cloverdale provides all municipal services except fire. Fire is provided by the Cloverdale Fire Protection District (CFPD). The Cloverdale Unified School District (CUSD) comprises four school sites: Jefferson School K-3rd grade, Washington School grades 4-8, Cloverdale High School grades 9-12, and Johanna Echols-Hansen Continuation High School. Sonoma State University, part of the California State University system, and Santa Rosa Junior College offer higher education.11 5 Bruce Kibby, Community Development Director, Memo to Mayor and City Council, 11 Dec. 2002. 6 Personal communication from John Wanger, City Engineer, 20 May 2005. 7 Interviews with Bruce Kibby, Community Development Director, 19 Oct. 2005 and 9 Jan. 2006. $ Personal communications from John Wanger, City Engineer, 20 May 2005 and 23 Nov. 2005. 9 Personal communication from John Wanger, City Engineer, 20 May 2005. Interview with Bruce Kibby, Community Development Director, 19 Oct. 2005. 10 Interview with Bruce Kibby, Community Development Director, 19 Oct. 2005. 11 CUSD Website, <www.cusd.C1rz> P: \ 13000s \ 13023SornMSR \ Report \ Cities \ Cloverdale \ CloverMO.doc Final Report Sonoma County MSR -City of Cloverdale January 9, 2006 Table 1 details the provision of services in the City of Cloverdale. Figure 1 provides an overview of cities in Sonoma County. Figure 2 provides a map of the City of Cloverdale. 4 P: 13000s V3023SonMSR\Report\Cities \Cloverdale \Clovcrdalc7.doc Table 1 Municipal Service Providers for the City of Cloverdale County of Sonoma Municipal Service Reviews, EPS #13023 Municipal Service Service Provider General Government Governing Board City Council Manager City of Cloverdale Attorney Contractor Finance/Clerk/Administrative Services City of Cloverdale Public Protection Traffic Control/Accident Investigation Law Enforcement Fire Protection Animal Control Land Use and Planning Regulation & Planning Building Inspection City Engineering Community Services Local Parks/Recreation Facilities Library Public Works Roads, Local Drainage, Bridges, Signals Domestic Water Wastewater Treatment/Disposal Solid Waste Management/Disposal Flood Control Street Lighting Street Tree Maintenance Public Education K-12 Grade Levels College Other Services Electricity Gas Cable Television Public Transit City of Cloverdale City of Cloverdale Cloverdale Fire Protection District Contractor City of Cloverdale Contractor Contractor City of Cloverdale Cloverdale Regional Library (Sonoma County) City of Cloverdale City of Cloverdale City of Cloverdale City of Cloverdale City of Cloverdale City of Cloverdale City of Cloverdale Cloverdale Unified School District Santa Rosa Junior College and Sonoma State University Pacific Gas & Electric Pacific Gas & Electric AT&T City of Cloverdale, Sonoma County Transit Economic & Planning Systems, Inc. 1211912005 5 P:113000s113023SonMSRIReportlCitieslCloverdalelCloverdale Figure 1 Sonoma County Administrative Area Boundaries N ~A~ y/ W-~bly E ~S CLOVERDALE HEALDSBURG J N--% City Limits Sphere of Influence -WINDSOR COTATI PETAL SANTA ROSA ROHNERT PARK SONOMA a I Economic & Planning Systems, Inc. P:113000s113023SonMSRlmapslmapinfolFig LAFCO ADM.wor 6 N ~ O ~U _rn O A U S VS 1p1 ~ \ \ 1~ ~ W J ~ - Q 0 J v d v O L J ~ .C U ~ 3 D Q m~ a 0 U of :zo ,C ro 0 M N O M O O O M V- CL U C y .c C ro 'a U O O LU 7 III. WATER GOVERNANCE AND OPERATIONS Cloverdale's Water Enterprise Operations, a division of the Public Works Department, is responsible for maintaining the quality and quantity of safe drinking water in the City. It is run by a staff of two. As an enterprise operation, the water division is financed and operated in a manner similar to private business enterprise wherein the cost (including depreciation) of providing water services to the general public on a continuing basis is almost entirely financed or recovered through user charges. The City Engineering Department assists with technical questions and services relating to water treatment and distribution. 12 In FY 05-06, the Water Operations budget is $1.68 million, to be funded by user charges.13 Monthly water usage charges consist of a monthly fixed flat rate and a graduated commodity charge. The current rate schedule, established in July 2005, consists of an $8.26 monthly access charge, plus usage charges of $1.57 per 100 cubic feet (hcf) for the first 4 hcf, $2.39 per hcf for 5 to 15 hcf, and $3.08 per hcf for over 15 hcf. A 10 percent late fee is charged on all overdue balances.14 INFRASTRUCTURE, FACILITIES AND SERVICES Cloverdale's water facilities include nine reservoirs, with a total capacity of 3.75 million gallons, as well as four wells that produce domestic water.15 The City is currently installing a new well at the Water Treatment Plant (WTP); this project has gone through the design process and is currently undergoing environmental review.16 Additionally, the City is systematically replacing undersized water mains on an annual basis to provide better fire protection and pressure and to replace aging infrastructure.17 Cloverdale charges development impact fees to pay for the facilities necessary to serve projected growth. Fees were last updated in June 2005. Current water fees are $2,948 per residential unit and $9,470 per commercial or industrial acre.18 12 City of Cloverdale Budget FY 05-06. 13 City of Cloverdale Budget FY 05-06. 14 Water and Sewer Utilities New Account Information, received from City 14 Oct. 2005. 15 John Wanger, City Engineer. Memo to Jerry Haag, Interim Planning Director, 6 Dec. 2001. Interview with John Gentry, Assistant Engineer, 14 Oct. 2005. 16 Interviews with John Gentry, Assistant Engineer, 14 Oct. 2005 and 9 Jan. 2006. 17 Personal communication from John Wanger, City Engineer, 20 May 2005. 18 City of Cloverdale Development Impact Fee Schedule (Adopted April 27, 2005/. Effective June 26, 2005), received from City 14 Oct. 2005. P: \ 13000s \ 13023SonMSR \ Reporl \ Cities \ Cloverdale \ CloverdalO.doe Final Report Sonoma County MSR-City of Cloverdale January 9, 2006 Accomplishments during FY 04-05 included the continuation of the water meter replacement program, begun in FY 02-3 to maintain accurate customer usage readings.19 Major projects planned in FY 05-06 include two new 500,000-gallon tanks to be built by developers as a condition of approval for development; one of these tanks is partially complete as of October 2005 and is expected to come online in 2006.20 Another recent development affecting water infrastructure was Caltrans' construction of a new freeway bypass through Cloverdale. This bypass runs between the Water Treatment Plant (located on the Russian River Plain) and the two hillside reservoirs where water is stored after treatment, before being piped to smaller tanks throughout the City. In cutting the embankment for the freeway, construction has jeopardized the stability of the slope. Slope failure could put the two large reservoirs out of commission, cutting off water supply to the rest of the City. In order to provide emergency backup, the City is constructing a 16-inch water main directly from the Water Treatment Plant to the smaller tanks, making it possible to bypass the hillside reservoirs if necessary. The bid for this project was awarded in October 2005 and is expected to be completed by the end of the fiscal year.21 The City has undergone significant growth in the past five years, requiring expanded infrastructure. As in the case of the planned new water tanks, Cloverdale has required developers to install the needed distribution facilities and to pay development impact fees to fund other needed facilities and services.22 DEMAND AND CAPACITY Average demand for water in the City of Cloverdale is currently 1.7 million gallons per day (mgd). Capacity at the WTP is 4.2 mgd. Construction of the new well will supplement summertime capacity but is not expected to significantly increase overall capacity; additional wells will be needed to serve population at buildout. If the General Plan (currently being updated) growth exceeds that number, the WTP is set up to be expanded again to serve an ultimate population of 16,000.23 The City believes that existing water entitlements are sufficient to supply the anticipated growth of the City. However, in moderately dry years there is the possibility of significant impacts on the City's water source (the Russian River basin). One option may be to negotiate with the Sonoma County Water Agency to enter into a contract for 19 City of Cloverdale Adopted Budget FY 04-05. Interview with John Gentry, Assistant Engineer, 14 Oct. 2005. 20 Interview with John Gentry, Assistant Engineer, 14 Oct. 2005. 21 Interview with John Gentry, Assistant Engineer, 14 Oct. 2005. 22 Interview with John Wanger, City Engineer, 26 Jan. 2005. Interview with John Gentry, Assistant Engineer, 14 Oct. 2005. 23 Interview with John Wanger, City Engineer, 26 Jan. 2005. Interview with John Gentry, Assistant Engineer, 14 Oct. 2005. P.-\ 13000s \ 13023SoWSR \ Rcport \ Cities \Clomrdale \ ClowdalcUor Final Report Sono= County MSR-City of Cloverdale January 9, 2006 "emergency water" in dry to critically dry years if sufficient flows do not exist in the Russian River.24 The possible upgrade of the City's wastewater treatment plant to tertiary status could also expand Cloverdale's water resources by providing reclaimed water for use in parks and landscape areas.25 24 John Wanger, City Engineer. 10/6/2004 Memo: Growth Management - Infrastructure Audit for FY 1999- 00. 25 City of Cloverdale Proposed Budget FY 03-04, 76. Interview with John Gentry, Assistant Engineer, 14 Oct. 2005. 10 P:\73000s\73023SonMSR\Report\Cities\Cloverdale\ CloverdaleTdoc IV. SEWER GOVERNANCE AND OPERATIONS The Sewer Enterprise Operations, a division of the Public Works Department, is responsible for treating wastewater in the City of Cloverdale. The department's staff members test water quality and chemical composition and perform tasks relating to the maintenance of the City's treatment plant, aeration ponds, pumping stations, piping systems, and other sewage treatment facilities. The City's Engineering Department provides technical support for these tasks. Sewer operations has a FY 05-06 budget of $1.5 million.26 Operations are funded primarily through sewer system access charges of $27.65 per month for a single-family residential dwelling unit. 27 Cloverdale charges development impact fees to pay for the facilities necessary to serve projected growth. Fees were last updated in June 2005. Current sewer fees are $2,506 per single-family unit, $2,507 per multifamily unit, and $9,177 per commercial or industrial acre.28 INFRASTRUCTURE, FACILITIES AND SERVICES Cloverdale's sewer connections as of December 2004 numbered 3,113, and have increased to approximately 3,200 as of October 2005 based on new development.29 The City's Sewer Master Plan estimated sewer flows to be 95 gallons per capita per day, or 248 gallons per residence per day.30 The City's wastewater treatment plant is located in southeastern Cloverdale, between the railroad tracks and the Russian River. Collection facilities as of 1998 included gravity flow sewers ranging in size from 6 to 27 inches. A lift station on Shahan Drive served a small area near the northern City limits. A small pump station served the southern portion of the City near Sandholm Lane; this pump station has since been eliminated. Additional lift stations are anticipated to be required to serve the southeastern portion of the City near the airport. Sewer improvements necessary to 26 City of Cloverdale Budget FY 05-06. 27 Water and Sewer Utilities New Account Information, received from City 14 Oct. 2005. 28 City of Cloverdale Development Impact Fee Schedule (Adopted April 27, 2005/. Effective June 26, 2005), received from City 14 Oct. 2005. 29 Interview with John Gentry, Assistant Engineer, 14 Oct. 2005. 30 Master Plan Update for The City of Cloverdale: Trunk Sewer Improvements, July 1998. 11 A\13000s\13023SonMSR\Report\Cities\Cloverdale \Cloverdnle7.doc Final Report Sonoma County MSR -City of Cloverdale January 9, 2006 serve new development will continue to be constructed in conjunction with individual development projects and funded by project proponents through the payment of development impacts fees. 31 Achievements in FY 04-05 included the continued review of the potential upgrade of the wastewater treatment plant to tertiary standards. Another major ongoing project is the replacement of aging and deteriorated sewer piping in the older sections of the City.32 Funding for this project is from sewer, water, and thoroughfare user fees collected as part of the City's sewer rates. The new piping will reduce inflow and infiltration (I/I), which happens when damaged or corroding pipes allow groundwater from winter storms into the sewer system, thus greatly increasing flow during heavy rainfalls. A citywide I/I plan is also in the design stage.33 DEMAND AND CAPACITY Cloverdale's wastewater treatment plant was designed with a capacity of 1 mgd average daily flow and 8.3 mgd peak wet weather flow. Actual flows are approximately 1.9 mgd in wet season and 0.5 mgd in dry season, i.e., approximately half (or less) of total capacity. City staff state that existing capacity is expected to be sufficient for buildout. In addition, a number of system modifications could increase capacity. Wet season flows are higher because of infiltration/ inflow; planned improvements designed to decrease I/I would therefore result in greater excess capacity. The department also continues to consider the possibility of upgrading its water treatment plant to tertiary treatment capabilities, a project that would be accomplished in cooperation with new planned developments in Cloverdale. This upgrade would further increase wastewater capacity.34 31 Master Plan Update for The City of Cloverdale: Trunk Sewer Improvements, July 1998. Interview with John Gentry, Assistant Engineer, 14 Oct. 2005. 32 Interview with John Wanger, City Engineer, 26 Jan. 2005. Interview with John Gentry, Assistant Engineer, 14 Oct. 2005. 33 Interview with John Gentry, Assistant Engineer, 14 Oct. 2005. 34 Interview with John Gentry, Assistant Engineer, 14 Oct. 2005. 12 P:\]3000s V3023SonMSR\Report\Cities\Cloverdale\ CloverdaleTdoc V. STREETS AND TRANSPORTATION GOVERNANCE AND OPERATIONS Cloverdale's Public Works Department is responsible for the operation, and maintenance of the City's infrastructure. Its services include park and street maintenance (covered by the Parks and Streets divisions within the department), as well as water and sewer operations, maintenance of City structures, and management of transit and airport facilities (all covered by the Enterprise Operations division of the department). Each of these divisions operates under a separate budget, though the costs of personnel and equipment may be shared throughout the entire department. Sewer and water facilities, which are the responsibility of the City Public Works Department, are described in the prior sections. Parks are discussed below in a separate section. The budget for FY 05-06 included $290,350 for Streets (including $10,600 in capital expenses), $111,580 for the airport, and $96,710 for transit.35 Development impact fees are used to pay for infrastructure needed to serve projected growth. Cloverdale's Development Impact Fee Schedule was last updated in June 2005. Current Street and Thoroughfare System fees are set at between $1,350 and $2,084 per single-family unit, between $940 and 1,687 per multifamily unit, between $2,004 and $3,169 per 1,000 square feet for commercial and industrial uses, and between $1,328 and $4,599 per acre for airport and public uses.36 INFRASTRUCTURE, FACILITIES AND SERVICES The Streets Department covers the maintenance of Cloverdale's 26 miles of streets, along with associated streets signs, traffic signals, and roadway markings.37 The department also maintains storm drains, water and sewer lines, and water and sewer treatment plants. The Transit Enterprise Operation has one staff member and one bus, and runs a fixed route with designated stops throughout the City. 38 35 City of Cloverdale Budget FY 05-06. 36 City of Cloverdale Development Impact Fee Schedule (Adopted April 27, 2005/. Effective June 26, 2005), received from City 14 Oct. 2005. 37 Personal communication from John Wanger, City Engineer, 20 May 2005. 38 City of Cloverdale Proposed Budget FY 04-05. 13 P:\13000s\13023SonMSR\Report\Cities\Clmmrdale\ CloverdaleTdoc Final Report Sonoma County MSR-City of Cloverdale January 9, 2006 While the City has owned the Cloverdale Airport since the early 1970s, it was until recently run, through contract, by a Fixed Base Operator (FBO).39 Airport operations were recently taken over by the City. The Cloverdale Airport features a 3,155-foot runway, City and private hangars, and a new City-owned fueling station from which the city hopes to receive sales revenue in order to pay down the debt service on the fueling station loan. The City contracted with an engineering firm to prepare an Airport Master Plan. This plan has been completed and is expected to be finalized in early 2006.40 DEMAND AND CAPACITY The Streets Department anticipates that Cloverdale's growth will necessitate continued expansion of services and infrastructure. Planned capital improvement projects and preventive maintenance will allow the department to meet this increasing demand. Development impact fees will help pay for the new infrastructure needed to serve projected growth. The Airport Enterprise has contracted with an engineering firm to create a new Airport Master Plan. This plan analyzes how the airport should develop in order to serve Cloverdale's growing population, and is close to complete as of October 2005.41 39 Personal communication from John Wanger, City Engineer, 20 May 2005. A Fixed Base Operator is a service center at an airport providing services such as aircraft fueling, flight training, baggage handling, and aircraft cleaning. 40 Interviews with John Gentry, Assistant Engineer, 14 Oct. 2005 and 9 Jan. 2006. 41 Interview with John Gentry, Assistant Engineer, 14 Oct. 2005. 14 P: 73000s U3023SonMSR\Report\Cities\C1overdale\C1overdnle7.doe VI. PARKS AND RECREATION GOVERNANCE AND OPERATIONS The Parks division operates as a division of the Cloverdale Public Works Department. It has its own staff and a budget of $294,980 (FY 05-06).42 It also coordinates with other divisions within the Public Works Department; for example, in FY 02-03; Public Works established a position ("Parks Worker/ Utility Worker I") to be shared by the Parks, Streets, and Water Departments.43 This position is currently funded and filled. The Parks division will also be hiring a temporary maintenance employee in the coming year and hopes to request permanent funding for this position in future fiscal years.44 Parks and Recreation Development Impact Fees are currently set at $1,820 per residential unit.45 INFRASTRUCTURE, FACILITIES AND SERVICES The Parks Department maintains four City parks, the central town Plaza, River Park, the lighting and landscape areas, and City buildings and structures. Cloverdale has a total of 82.96 acres of parkland.46 Plans for the new Vintage Meadows park area are being reviewed by the City Council but have not yet been approved.47 DEMAND AND CAPACITY Cloverdale's 1992 General Plan (currently being updated) sets a goal of five acres of parkland per 1,000 population.48 Based on the City's current population of approximately 8,000, this standard calls for around 40 acres of parkland. The City's existing 82.96 acres of parkland exceed this standard, meeting General Plan requirements.49 42 City of Cloverdale Budget FY 05-06. 43 City of Cloverdale Budget FY 04-05. 44 Interview with Bob Crabb, Public Works Superintendent, 19 Oct. 2005. 45 City of Cloverdale Development Impact Fee Schedule (Adopted April 27, 2005/. Effective June 26, 2005), received from City 14 Oct. 2005. 46 Personal communication from Bruce Kibby, Community Development Director, 23 May 2005. 47 Interview with Bob Crabb, Public Works Superintendent, 19 Oct. 2005. 48 City of Cloverdale 1992 General Plan, Parklands and Recreation Element, 103. 49 Personal communication from Bruce Kibby, Community Development Director, 23 May 2005. 15 P: 13000s U3023SonMSR\Reprt\Cities\Cloverdale \ CloverdnleTdoe Final Report Sonoma County MSR=City of Cloverdale January 9, 2006 The General Plan also has requirements for distribution of parkland by type of use. The current parklands are deficient by 4 acres for sports and play fields, 3.5 acres for children's play equipment, and 2.5 acres for court games. These distributions will change with the revised General Plan, which will reallocate space currently used for parking.50 The Parks Department has coordinated with a number of other public and private agencies in order to more effectively meet the demand for services. The department shares sports field maintenance responsibility with local sports leagues, contracts with the YMCA for aquatic,activities management, and provides landscaping services for the Cloverdale Public Library (for which it is reimbursed by Sonoma County Library).51 The addition of a temporary employee will also help the Parks Department meet demand; permanent funding for this position will be requested in the future.52 50 Personal communication from Bruce Kibby, Community Development Director, 23 May 2005. Interview with Bruce Kibby, Community Development Director, 19 Oct. 2005. 51 City of Cloverdale Proposed Budget FY 03-04, 99. 52 Interview with Bob Crabb, Public Works Superintendent, 19 Oct. 2005. 16 - A\13000s\13023SonMSR\Report\Cities \C1ozxrdale\C1overdale7.doc VII. POLICE GOVERNANCE AND OPERATIONS The Cloverdale Police Department is responsible for the prevention and investigation of crimes, the apprehension of criminals, law enforcement, and emergency services. It also provides community services such as public education, animal control, and fingerprinting of employment applicants.53 The Department's staff includes a Chief of Police, 3 Sergeants, a detective, and 9 Patrol Officers (a total of 14 sworn officers, or 1.8 officers per 1,000 population), as well as one full-time and one part-time community service officer and 5 other non-sworn employees.54 The department's total budget for FY 05-06 is $2.778 million. This total breaks down to $2.4 million for Personnel, $156,005 for Services, $94,250 for Supplies, and $115,000 in Capital Outlay.55 The city contracts with Sonoma County Animal Control and a local veterinarian for animal control services.56 Development Impact Fees for police services were last updated in June 2005 and are currently set at $933 per residential unit and $0.58 per commercial or industrial square foot.57 INFRASTRUCTURE, FACILITIES AND SERVICES The Cloverdale Police Department is located at 112 Broad Street. This facility is shared with the CFPD; according to the Police Department, it is undersized and inadequate. The Department is exploring the possibility of taking over another building until a new one can be built. Funding is not available for the project at this time.58 53 City of Cloverdale Proposed Budget FY 03-04, 87. 54 Interview with Department Interim Chief Steve Willis, 5 Jan. 2005. Interview with Department Interim Chief Steve Willis, 27 Oct. 2005. 55 City of Cloverdale Budget FY 05-06. 56 Interview with Department Interim Chief Steve Willis, 5 Jan. 2005. 57 City of Cloverdale Development Impact Fee Schedule (Adopted April 27, 2005/. Effective June 26, 2005), received from City 14 Oct. 2005. 58 Interview with Department Interim Chief Steve Willis, 5 Jan. 2005. Interview with Department Interim Chief Steve Willis, 27 Oct. 2005. 17 P:\ 13000s V3023SonMSR\Report\Cities \Clovcrdnle\ CloverdaleTdoe Final Report Sonoma County MSR -City of Cloverdale January 9, 2006 The Department has 15 vehicles: one for each sergeant and officer (as part of a "take- home" car program), one for the chief, and two used by the community service officers.59 Equipment purchases for FY 05-06 include automated finger identification equipment intended to meet State of California requirements; expenses for this equipment will be reimbursed by the County.60 In addition to standard police vehicles, the Police Department uses ZAP electric bikes for school and community patrols and special events. The bikes were paid for through grants from the Northern Sonoma County Air Quality Control Board, Hewlett-Packard, Exchange Bank of Cloverdale, and the Cloverdale Police Officers Association.61 The Department's average response time is two to three minutes. It received 8,611 calls for service in 2004.62 DEMAND AND CAPACITY Extensive growth in Cloverdale has created new demand for police services., A new officer's position was filled in January 2005, and a detective position was filled in August 2005.63 The Department anticipates that additional positions will become necessary in the near future, particularly to provide administrative support. Funding for these positions is not currently available; according to the Department, however, the City will budget for new staff as necessary. The Department also hopes to replace its interim chief with a new chief shortly.64 Other measures taken in recent years may also help the Department to meet growing demand. For example, a restructuring effort increased staffing on the busiest shifts, and the department's "take-home" car program allows off-duty officers to have easy access 59 Interview with Department Interim Chief Steve Willis, 5 Jan. 2005. 60 City of Cloverdale Budget FY 05-06. 61 Cloverdale Police Department Website, <htt p: www.cloverdale_us resoui sie tml> 62 Interview with Police Department Records Supervisor, 13 April 2005. 63 Interview with Department Interim Chief Steve Willis, 27 Oct. 2005. 64 Interview with Department Interim Chief Steve Willis, 5 Jan. 2005. 18 P: 13000s\ 13023SonMSR \Report\ Cities\ Clomrdale\ Cloverdnle.doc Final Report Sonoina County MSR-City of Cloverdale January 9, 2006 to their patrol cars in order to provide back-up support as needed.65 The Department established a canine program in June 2005 to provide support in areas such as drug detection and crowd control.66 65 City of Cloverdale Proposed Budget FY 03-04, 87. 66 Interview with Department Interim Chief Steve Willis, 27 Oct. 2005. 19 P:\ 13000s\ 13023SonMSR \Report \Cities\ Cloverdale \ CloverdaW.doc VIII. FIRE Fire protection for the City of Cloverdale is provided by the CFPD. As an independent fire district, the CFPD was covered in the previous MSR conducted for fire districts (Summer 2005). The report is reprinted below, updated as of October 2005. The CFPD covers an area of 76 square miles, bordering on Sonoma County's northern boundary and encompassing the City of Cloverdale (2.7 square miles) in addition to unincorporated areas. It provides fire protection services to a population of 11,500. The District has had difficulty obtaining sufficient funding to meet the demands of new growth. Renegotiation of its property tax sharing arrangement with the City of Cloverdale could help address the District's financial situation. GOVERNANCE AND OPERATIONS The CFPD was formed in 1996. Prior to 1996, the County provided fire protection services under contract with the City of Cloverdale. The Fire Protection District was formed in order to stabilize funding from the County for services previously provided by the City of Cloverdale Fire Department to CSA 39 by contract.67 The District provides services that include fire suppression, rescue, EMT response, fire prevention, and public education. The CFPD has a staff of three paid sworn firefighters, two support administrative staff, and twenty volunteer firefighters, as well as two full-time firefighters provided by the California Department of Forestry (CDF) under an Amador contract.68 It is directed by its own five-member Board of Directors, which meets the second Monday of each month at the Fire Station. Meetings are open to the public. The District also publishes fire safety news and information in the local newspaper.69 The CFPD's revenue comes in part from a percentage of property taxes, which account for around 20 percent of total revenue. Other revenues include a $22-per-unit special assessment and fees for service. Funds to support the cost of fire service in the District's unincorporated area are provided through a share of property taxes. Funds to support the cost of fire service within the incorporated boundaries of the City of Cloverdale are provided through a negotiated Settlement Agreement with a fixed dollar amount provided by the City to the District on an annual basis. This settlement agreement will expire in 2007 and will be renegotiated in the near future.70 The CFPD also receives impact fees, collected by the City of Cloverdale at the rate of $987 per residential unit 67 City of Cloverdale Police Department and Cloverdale Fire Protection District Request for Proposal, Update of Master Needs Assessment and Police/ Fire Development Impact Fee Update, 2004. 68 The Amador Plan allows local fire agencies to contract with CDF for fire protection services during non- fire-season months. 69 LAFCO Request for Information, 2002. Interview with Fire Chief Brian Elliott, 27 July 2004. 70 City of Cloverdale Police Department and Cloverdale Fire Protection District Request for Proposal, Update of Master Needs Assessment and Police/ Fire Development Impact Fee Update, 2004. 20 PrV3000s\ l3023SonMSR \Report\ Cities\ Cloverdale\ CloverdaleTaloc Final Report Sonoma County MSR -City of Cloverdale January 9, 2006 and $0.62 per commercial square foot.71 The District is carrying about $500,000 in debt on apparatus leases, to be paid out of the budget's capital apparatus fund. In FY 05-06, the CFPD budgeted $929,000 in operating -expenditures (including $25,000 in appropriations for contingency), with reserves equal to approximately 10 percent of that total.72 The District relies on a consultant's study addressing service requirements through 2011 as its Master Plan. However, the District is in the process of updating this plan in cooperation with the City of Cloverdale; a public safety Master Plan has been undertaken jointly with the City and the Cloverdale Health Care District.73 The first phase of this report was completed by Citygate consultants and presented at a joint City Council and Fire District Board meeting in October 2005.74 In addition to its contract with the CDF, the CFPD has automatic aid agreements with Geyserville and Hopland. Cooperative arrangements with the City of Cloverdale include the joint Master Plan and a shared public safety facility.75 INFRASTRUCTURE, FACILITIES AND SERVICES The CFPD's ISO rating is 4 with access to public water and 8 without. Its average response time within the City is approximately five minutes. The CFPD responds to approximately 900 calls each year, of which about 70 percent generally come from within City limits.76 The District's facilities and equipment include one utility vehicle, one combination water tender/pumper, one interface engine, one rescue engine, and three city fire engines. Equipment is housed in a building located at 116 Broad Street in Cloverdale. This facility, built in 1978, is shared with the Cloverdale Police Department; the Fire Protection District occupies around 5,500 square feet of the building, with the Police Department occupying the remaining 1,500 square feet. According to the District, a 1992 study by Hughes, Heiss, and Associates determined that this facility was undersized and inadequate. Recent seismic retrofitting improved the existing facility's earthquake safety; according to the District, however, these measures have not brought the building up to the standard recommended by a structural engineer. The CFPD has secured a vacant lot suitable for the construction of a new fire station, but has not succeeded in obtaining funding for construction, despite efforts that included a general obligation bond measure (April 2002) and an attempt to create an assessment district (July 2003). 71 City of Cloverdale Development Impact Fee Schedule, Effective May 23, 2004. 72 Interview with CFPD Chief Brian Elliott, 27 July 2004. CFPD Proposed Final Budget 2005-2006. 73 Interview with CFPD Chief Brian Elliott, 27 July 2004. 74 Personal communication from CFPD Brian Elliott, 24 Oct. 2005. 75 Ibid. 76 Interviews with CFPD Chief Brian Elliott, 27 July 2004 and 1 Oct. 2004. 21 P:\ 13000s V3023SonMSR\Report\Cities \Clozwrdale\ CtoverdaleTdoc Final Report Sonoma County MSR -City of Cloverdale January 9, 2006 The first of these two measures lost by a narrow margin, receiving 62 percent approval rather than the required two-thirds.77 DEMAND AND CAPACITY The Sonoma County PRMD projects that the Cloverdale Urban Service Area's population will grow by 4,148, to 11,200, between 2000 and 2020-an annual increase of almost 3 percent. The population of the rural northeast area (i.e., the unincorporated area outside the City USA) is expected to grow by 1,561 during the same period, an annual increase of 1.37 percent.78 Increases in the demand for services have made it difficult for the CFPD to provide adequate fire protection. An Amador Contract for two full-time firefighters from the CDF has allowed the District to provide adequate services in recent years; however, the costs of this contract have risen rapidly.79 In order to address staffing and related issues, the District and the City of Cloverdale have hired consultants to complete a joint public safety Master Plan. Phase I of the consultants' report was completed and presented to a joint City Council and Fire District Board meeting in October 2005. This phase of the study concluded that the District is currently unable to meet growing demand for both emergency services and public education, fire prevention, and plan check duties. Efforts to meet this demand through CDF contracts and the use of volunteers, volunteer stipend employees, and a temporary 40-hour firefighter have not been sufficient to compensate for a lack of funds. The District states that there are currently inadequate funds to pay for a full-time fire chief, while paying for the CDF contract will reduce District reserves without additional financial assistance from the City.80 The lack of adequate revenue places limits on the District's capacity to expand services. The CFPD does not get pass-through funds from property taxes on areas annexed by the City, but instead receives a fixed amount, unadjusted for inflation or growth. The District believes this arrangement has contributed to its difficulty in financing the new facilities and staff required to serve new development.81 The District has requested 77 City of Cloverdale Police Department and Cloverdale Fire Protection District Request for Proposal, Update of Master Needs Assessment and Police/ Fire Development Impact Fee Update, 2004. Interview with Fire Chief Brian Elliott, 1 Oct. 2004. 78 Sonoma County General Plan 2020, Overview Draft. <htt \~,ww.sonozna- court or /}~rmd X202(1 draftl index.him> Accessed 2 Nov. 2004. 79 Interview with CFPD Chief Brian Elliott, 27 July 2004. 80 Personal communication from CFPD Chief Brian Elliott, 24 Oct. 2005. 81 Interview with CFPD Chief Brian Elliott, 27 July 2004. Interview with Cloverdale City Manager Jennifer Murray, 15 Oct. 2004. 22 P: \ 13000s \ 13023SonM SR \Report\ Cities\ CloverdWe \ CloverdaleUoc Final Report Sonoma County MSR -City of Cloverdale January 9, 2006 additional gap funding from the City of Cloverdale, and the City and the District have agreed to begin negotiations regarding the District's property tax share within the incorporated area of Cloverdale.82 The District is also talking with the Hopland/ Blue Lakes Pomo tribes about the possible construction of a casino within the District. The CFPD does not take a political position on the project but notes that, if the District is to be responsible for fire and life safety response needs generated by this casino, a service agreement to provide such services will need to be signed.83 82 Personal communication from CFPD Chief Brian Elliott, 24 Oct. 2005. 83 Personal communication from CFPD Chief Brian Elliott, 24 Oct. 2005. 23 P:\13000s\13023SonMSR\Report\Cities\Cloverdale \Cloverdale7.doc IX. DETERMINATIONS INFRASTRUCTURE NEEDS AND DEFICIENCIES Cloverdale is in the process of installing a new well at the Water Treatment Plant, with the project currently undergoing environmental review. The City is also systematically replacing undersized water mains on an annual basis. A Caltrans bypass was recently constructed in Cloverdale between the Water Treatment Plant (located on the Russian River Plain) and the two hillside reservoirs where water is stored after treatment. In cutting the embankment for the freeway, construction has jeopardized the stability of the slope. Slope failure could put the two large reservoirs out of commission, cutting off water supply to the rest of the City. In order to provide emergency backup, the City is constructing a 16-inch water main directly from the Water Treatment Plant to the smaller tanks, making it possible to bypass the hillside reservoirs if necessary. This project is expected to be complete by the end of FY 05-06. • Sewer and water infrastructure needed to serve new development will be constructed in conjunction with individual development projects and funded primarily through impact fees. • Cloverdale is considering the possibility of upgrading its wastewater treatment plant to tertiary status in cooperation with planned development. This upgrade would result in increased water capacity. • The Cloverdale Police Department (CPD) shares its station with the Cloverdale FPD; according to the Department, this facility is undersized and inadequate. The Department is exploring the possibility of taking over another building until a new one can be built. Funding for the project is not available at this time. • The CFPD's single fire station, which is shared with Cloverdale law enforcement, is not adequate to meet current demand. The CFPD has failed in two attempts to pass special taxes in order to fund the construction of a replacement station. GROWTH AND POPULATION PROJECTIONS FOR THE AFFECTED AREA The City of Cloverdale is among Sonoma County's fastest growing communities on a percentage basis, with a population projected to increase at a rate of almost 3 percent annually between 2000 and 2020. Growth over the past five years has been significant and has required expansion of most public facilities. Growth rates are expected to decline in the future because of market forces and reduced land availability. 24 P:V3000s\13023SonMSR\Report\Cities\Cloverdale\ Cloverdnle7.doc Final Report Sonoma County MSR-City of Cloverdale January 9, 2006 FINANCING CONSTRAINTS AND OPPORTUNITIES • Funding for replacement of existing water and sewer infrastructure is generally from current operating funds and low-interest loans. The City has successfully relied on developer financing for new water and sewer infrastructure and on development impact fees to fund other facilities and services. In areas annexed by the City of Cloverdale, the CFPD's revenue from property taxes is limited to a fixed amount, unadjusted for inflation. or growth. This constraint has contributed to the CFPD's difficulties in paying for new facilities and staff. The City and District plan to renegotiate the arrangement in the near future. COST AVOIDANCE OPPORTUNITIES • A shared Parks worker/Utility worker staff position reduces staff costs by training one staff person in two departments. • Cooperation with the City of Cloverdale, such as additional shared facilities and an ongoing joint Public Safety Master Plan, could eliminate significant costs for the CFPD. OPPORTUNITIES FOR RATE RESTRUCTURING • Cloverdale City Resolution No. 119-2003 adopted monthly sewer service charges that increased as of January 2004, July 2004, and July 2005. The City has the opportunity to review costs and revise sewer service rates as necessary. • In June 2005, Cloverdale updated development impact fees for water and sewer facilities, streets infrastructure, and other City facilities. • The CFPD has made two unsuccessful attempts to pass bond measures in order to fund the construction of a new station. It is negotiating with the City of Cloverdale regarding its share of property taxes. OPPORTUNITIES FOR SHARED FACILITIES • The Parks Department coordinates with a number of other public and private agencies. For example, it shares sports field maintenance responsibility with local sports leagues, contracts with the YMCA for aquatic activities management, and provides landscaping services for the Cloverdale Public Library. 25 P: 73000s\13023SonMSR\Report\Cities\Cloverdale\CloverdateTdoc Final Report Sonoma County MSR-City of Cloverdale January 9, 2006 • The CFPD and the City of Cloverdale Police Department share a facility. The two agencies are also collaborating on a public safety Master Plan. GOVERNMENT STRUCTURE OPTIONS • In the past year, LAFCO approved the Zanzi Annexation (13.5 acres) and the Sunrise Hills Annexation (12 acres). The City has also been approached by developers regarding three additional annexations: the Alexander Valley Resort (254 acres), the South Industrial Area (50 acres, and the Lile Annexation (23.5 acres). EVALUATION OF MANAGEMENT EFFICIENCIES • A maintenance position is currently shared among the Parks, Streets, and Water divisions, allowing staff time to be used according to each division's need. The Cloverdale Police Department has taken measures to more efficiently meet the growing demand for police services: a restructuring effort increased staffing on the busiest shifts, while the department's "take-home" car program allows off-duty officers to provide back-up support. The CFPD contracts with the CDF for two full-time firefighters. The costs of this contract are rising rapidly; if the CFPD is unable to pay for CDF support, it may not have the staff necessary to operate at maximum efficiency. LOCAL ACCOUNTABILITY AND GOVERNANCE The City maintains a web site with information on City services and departments. Public documents such as the City budget, general plan, and zoning ordinance are available to download. City Council and Commission meetings are open to the public. • The CFPD's five-member Board of Directors meets publicly the second Monday of each month at the fire station. The District also publishes fire safety news and information in the local newspaper. 2V P:\ 130000 73023SonMSR\Repmt\Cities\Cloverdale\ Cloverdale7.doc CITY OF UKIAH Municipal Service Review Steps 2004-2008 ATT T Date March 2004 Notes City receives water questionnaire from LAFCO Late 2004 City submits completed water questionnaire April 2005 City submits additional information requested by LAFCO June 2005 Staff email to LAFCO indicating that City Police and Fire Staff are available to provide any needed information. Also indicating that if anything else is needed beyond what had already been submitted, please advise because the City would like to get the MSR completed as soon as possible. June 2005 LAFCO email indicates that a heavy workload is slowing progress and additional information is requested. July.2005 Meeting with LAFCO staff to discuss status of MSR. City offers to Work on entire document to help speed progress. September 2005 City produces initial MSR narratives of City Departments/Services. January 2006 City hires Consultant (former DPW Director) to add legally required components, reformat the document etc. February 2006 Consultant corresponds with LAFCO, MCOG, and various departments to gather information. Mid 2006 City determines that water questionnaire outdated and should be revised. October 2006 City meets with LAFCO, shares Working Draft material, and indicates that Preliminary Draft document very near completion and would be discussed with City Council and then submitted to LAFCO b November/December. December 2006 Working Draft document completed - Formatting tasks to be com leted b Consultant PMC. 3anuary2007 Preliminary Draft completed - Internal review underway. March 2007 Prelimina Draft material submitted to LAFCO March 2008 City Council Subcommittee, City Manager and Planning Director meet with LAFCO - Agree to next steps. Letter from City to LAFCO confirming steps April 2008 Letter from LAFCO addressing next steps May 2008 Preliminary "general" services Draft updated and submitted to LAFCO June 2008 Email from LAFCO with attached 12-page outline for MSR - No comments made on Preliminary Draft document. ITEM NO.: MEETING DATE: City aJ r[.tl-6afi• AGENDA SUMMARY REPORT 10b August 18, 2010 SUBJECT: ADOPT RESOLUTION ACCEPTING A SECTION OF PERKINS STREET RIGHT OF WAY AS OFFERED FOR RELINQUISHMENT BY THE STATE OF CALIFORNIA DEPARTMENT OF TRANSPORTAITON Background: On October 21, 2009 the City Council awarded a construction contract to North Bay Construction, Inc. for the Perkins Street and Orchard Avenue Intersection Improvements, Specification No. 09-14. The project was advertised with the condition that a Notice to Proceed would not be issued prior to the City 1) obtaining a small segment of right of way from the property owner at the northeast corner of the intersection and 2) obtaining an encroachment permit from the State of California Department of Transportation (Caltrans) for the project. Discussion: Subsequent to the award of the project, Caltrans declined to issue an encroachment permit unless the City changed the design of the striping to meet Caltrans standard lane widths. However, the existing Perkins Street right of way does not provide sufficient width for the existing striped lanes plus the new right turn lane. Caltrans recognizes that the addition of a right turn lane will improve the traffic flow on Perkins Street between the US 101 overpass and Orchard Avenue. The new right turn lane on Perkins Street will therefore benefit both Caltrans and the City. As such, Caltrans offered that it could relinquish a small segment of right of way which currently overlaps the work area for the City's project. With relinquishment of this right of way, Caltrans will not require design'of the project to meet its standards. For City Council's reference attached are a copy of the resolution for adoption, Attachment 1 and a copy of the right of way relinquishment map, Attachment 2. Staff recommends adoption of the attached resolution. Fiscal Impact: Budgeted FY 10/11 ❑ New Appropriation Not Applicable Budget Amendment Required Amount Budgeted Source of Funds (title and Account Number Addtl. Appropriation Requested Recommended Action(s): Adopt resolution accepting a section of Perkins Street right of way as offered for relinquishment by the State of California Department of Transportation. Alternative Council Option(s): N/A Citizens advised: N/A Requested by: Tim Eriksen, Director of Public Works / City Engineer Prepared by: Rick Seanor, Deputy Director of Public Works Coordinated with: Jane Chambers, City Manager Attachments: 1. Resolution for adoption. 2. Right of Way Relinquishment Map. Approved: .r Ja a Ch mbers, City Manager Attachment # I 01- MEN 101 PM 24.5 Perkins Street Proposed Westbound Right Turn Lane Relinquishment No. 1242 RESOLUTION NO. 2010- RESOLUTION OF THE CITY COUNCIL OF THE CITY OF UKIAH WHEREAS, the State of California, Department of Transportation, is in possession of certain right of way in the City of Ukiah, Mendocino County on a portion of Highway 101, at Perkins Street; and WHEREAS, said right of way is no longer needed for State highway purposes, and the State of California desires to relinquish said right of way to the City of Ukiah in the County of Mendocino. NOW, THEREFORE, BE IT RESOLVED that the City of Ukiah Council agrees to accept said right of way as highlighted on the attached map marked EXHIBIT "A". BE IT FURTHER RESOLVED that the City of Ukiah Council agrees to waive the 90-day notice period as provided for in Section 73 of the Streets and Highways Code. BE IT FURTHER RESOLVED that the City of Ukiah agrees to maintain and continue to enforce the restriction of access acquired by the Department of Transportation, across course (9) as described in the Final Order of Condemnation, recorded in Book 683 of Official Records, Page 142, Mendocino County Records. PASSED AND ADOPTED this 18th day of August 2010 by the City of Ukiah Council in the County of Mendocino and State of California, by the following roll call vote: AYES _ NOES ABSENT ABSTAIN Benj Thomas, Mayor of City of Ukiah Mendocino County, State of California ATTEST: JoAnne Currie, City Clerk Attachment # Z ov 08°„ ~0E 8 ^`pga €go I 0 O U rJ I 1 EAST PERKINS ~l a S ~ R $ a FWx ~ a F-4 CL W 2.it h o V as 91 a F` sod 6 g ~ 3 88 8 g~^~ ~S ~ aa~.^ a g ° p e FP°sa ,yei Y y F a eY YYS 1 I _ b z ~ ^ u a W ec znsa.v+ k c) a k ~ 'Y o F W o _ o PM 24.5 n m \ p _ N~ m ~ m ~ \ a $ 1 m • wrgm 00 O U W u J O o u O O i+ a SNO 5 n3tl 1yu ITEM NO.: 11 a MEETING DATE: AGENDA SUMMARY REPORT August 18, 2010 SUBJECT: ADOPTION OF RESOLUTION APPROVING AN APPLICATION FOR PROPOSITION 84 SUSTAINABLE COMMUNITIES PLANNING GRANT AND INCENTIVES PROGRAM COMPETITIVE GRANT FUNDS. Background & Discussion: City staff has identified the Proposition 84 Sustainable Communities Planning Grant as a possible source of funding for the development of a Greenhouse Gas (GHG) Emission Inventory and Climate Action Plan. If awarded, the funds would be used to secure a consultant to inventory municipal and citywide greenhouse gas emissions. This inventory will be used in the development of a climate action plan for our community. The grant application requires the attached resolution to be included with the application (Attachment #1). This application will be a joint effort shared by the City of Willits and the City of Fort Bragg. Both of these cities have already completed a greenhouse gas emissions inventory. The goal of the combined grant application is to execute the GHG inventory for the City of Ukiah as well as reduce Municipal Green House Gas Emissions and Particulates through development and implementation of a Climate Action Plan for all three cities. Implementation of the Climate Action Plan will: 1) reduce particulates; 2) increase the walk- ability and bike-ability of our towns; 3) and strengthen our localization efforts (shop & produce local food). Through these and other efforts the Climate Action Plan and Sustainability Element of the General Plan will improve public health. The Climate Action Plan will focus on specific achievable measures that the City can take to reduce all types of fuel use (gas, heating, electricity) throughout city operations (buildings, fleet, utilities, etc.). There is no cost associated with the submittal of this grant application other than the staff time in preparation. Additionally, there is no match component required for these funds, however to mirror the efforts of the other two cities participating in this application, Staff is recommending a match contribution of twenty-two thousand dollars of in-kind support and miscellaneous supplies/public noticing. This contribution will make our application significantly more competitive and will not require a budget amendment. If grant funds are awarded, staff will seek direction from Council before continuing in the process of securing a consultant and will also incorporate additional community involvement. Continued on page 2 Recommended Action(s): Adopt the resolution authorizing the application to the Proposition 84 Sustainable Communities Planning Grant and Incentives Program. Alternative Council Option(s): Determine the application to the Proposition 84 Program is inappropriate at this time and do not move to adopt the resolution. Citizens advised: N/A Requested by N/A Prepared by: Maya Simerson Community Services Coordinated with: Jane Chambers, City Manager and Sage Sangiacomo, Assistant City Manager Attachments: 1.Resolution Approving Application for Prop 84 Grant Funds Approved: Jaffe Cha ers, City Manager Subject: Adoption Of Resolution Approving An Application For Proposition 84 Sustainable Communities Planning Grant And Incentives Program Competitive Grant Funds. Meeting Date: August 18, 2010 Page 2 of 2 Fiscal Impact: Not Applicable Budget Amendment Required X Budgeted FY 10/11 F-1 New Appropriation 1-1 Amount Budgeted Source of Funds (title and Account Number Addtl. Appropriation Requested $22,000 10/11 Budgeted In-kind Staff Various 110 Regular & Materials Salaries and misc 690 Supply accounts ATTAC14MEN°I" ) RESOLUTION NO. 2010- RESOLUTION OF THE CITY OF UKIAH APPROVING THE APPLICATION FOR GRANT FUNDS FOR SUSTAINABLE COMMUNITIES PLANNING GRANT AND INCENTIVES PROGRAM UNDER THE SAFE DRINKING WATER, WATER QUALITY AND SUPPLY, FLOOD CONTROL, RIVER AND COASTAL PROTECTION BOND ACT OF 2006 (PROPOSITION 84) WHEREAS, the Legislature and Governor of the State of California have provided funds for the program shown above; and WHEREAS, the Strategic Growth Council has been delegated the responsibility for the administration of this grant program, establishing necessary procedures; and WHEREAS, said procedures established by the Strategic Growth Council require a resolution certifying the approval of application(s) by the Applicants governing board before submission of said application(s) to the State; and WHEREAS, the applicant, if selected, will enter into an agreement with the State of California to carry out the development of the proposal. NOW, THEREFORE, BE IT RESOLVED that the City of Ukiah 1. Approves the filing of an application for the Mendocino County Sustainable Communities Planning Grant in order to become a sustainable community; 2. Certifies that applicant understands the assurances and certification in the application, and 3. Certifies that applicant or title holder will have sufficient funds to develop the Proposal or will secure the resources to do so, and 4. Certifies that the Proposal will comply with any applicable laws and regulations. 5. Appoints the Project Analyst, or designee, as agent to conduct all negotiations, execute and submit all documents including, but not limited to applications, agreements, payment requests and so on, which may be necessary for the completion of the aforementioned project(s). PASSED AND ADOPTED by the Ukiah City Council on August 18, 2010 by the following roll call vote: Ayes: Noes: Absent: Abstain: Attest: Benj Thomas, Mayor JoAnne M. Currie, City Clerk ITEM NO.. MEETING DATE: City c-,r 2-1kiafi- AGENDA SUMMARY REPORT 11b August 18, 2010 SUBJECT: AWARD OF CONTRACT FOR THE ORCHARD SUBSTATION CONSTRUCTION PROJECT, SPECIFICATION NO. 10-08. Background: This project is for the construction of the Orchard Substation. Discussion: On June 16, 2010, the City Council approved plans and specification No. 10-08 for the Orchard Substation Project. The City distributed the plans and specifications to builder's exchanges. The City publicly advertised this project on June 27 and July 4, 2010, in the Ukiah Daily Journal. A copy of the Notice to Bidders was sent to 123 contractors including all licensed Class A contractors on the City's 2010 Qualified Contractors List. In addition, the plans and specifications were posted on the City's website. Sealed bids were received and opened by the City Clerk on July 29, 2010. Seven contractors submitted bids. The lowest responsive, responsible bidder is Cal Electro, Inc., with a bid of $2,980,000. The engineer's estimate for this project is $3,200,000. Please refer to Attachment #1 for the complete summary of bid results. As with construction projects, there may be cost overruns by reason of unforeseen work. 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. Staff recommends that City Council award the contract for the Orchard Substation Construction Project Specification No. 10-08 to Cal Electro, Inc. in the amount of $2,980,000. Funds have been budgeted and are available in 800.3642.930.000. Fiscal Impact: Budgeted FY 10/11 ❑ New Appropriation Amount Budgeted Source of Funds (title and $5,000,000 New Substation & Equip. Not Applicable F] Budget Amendment Required Account Number Addit. Appropriation Requested 800.3642.930.000 Recommended Action(s): Award the contract for the Orchard Substation Construction Project Spec. No. 10-08 to Cal Electro, Inc. in the amount of $2,980,000. Alternative Council Option(s): Do not award the contract, and provide further direction to staff. Citizens advised: N/A Requested by: Mel Grandi, Director of Electric Utility Prepared by: Mary Horger, Purchasing Supervisor Coordinated with: Jane Chambers, City Manager, Anthony Hanson, Proj. Engineer, R.W. Beck Attachments: Attachment #1 - Bid Tabulation Approved: Jape e Cha bers, City Manager cl E; fl S ~ o Y! N m ~ O ! •b aav U~ui~ ~ S$ d ~ o ~ ~ o ~ m c ~ x2 C $ s ~Q~ E ~ ~ o , ~ $2 i 8 L' tg ~ ~ ~ s F~ G c pyp '1 1n ~ Y. A q' .~q5y C~ li i~ K N S m ~ n 1 e s us ~ ' e ~ ~ ~ 1 2 W M m O S ~ g 9 CO` K ` $QS N p~j N ~ ~ 'j pn ~ ~ C C QQ p m b Inj z s 0 O O LL ~ C p 9 ~ 4 ATTACHEW ITEM NO: 11c Meeting Date: August 18, 2010 t-xzyol,ufr_ AGENDA SUMMARY REPORT SUBJECT: DISCUSSION AND POSSIBLE ACTION TO AMEND THE TRANSFER STATION CONTRACT TO AUTHORIZE AN ADJUSTMENT TO THE SCHEDULE OF FEES AND RATES FOR TRANSFER STATION SERVICES AND CLARIFYING THAT THE TERM OF THE CONTRACT SHALL EXTEND TO SEPTEMBER 30, 2016. Overview: The City's contract for operation of the Ukiah Transfer Station provides for an annual adjustment to fees and charges based on 50% of the change in the Consumer Price Index ("CPI"). Solid Waste Systems, Inc. (SWS) requested an increase of the Transfer Station per ton fee to $78.50 from $60.22 per ton and the cubic yard fee to $15.38 from $11.80. The request from SWS is based on increased costs for disposal, transportation, and diversion of refuse accepted at the Transfer Station, as well as lost revenue from declining tonnage related to the downturn in the economy and increase operational costs to service self-haulers. City staff reviewed the request and met with SWS staff. After reviewing SWS's financial and operational information, City staff recommends adjusting the per ton fee to $74.50 and the cubic yard fee to $17.50 in order to maintain a viable operation. (continued on page 2) RECOMMENDED ACTION: 1) Authorize City Manager to sign a contract amendment with Solid Waste Systems Inc. authorizing the per ton fee of $67.50 plus surcharges of $7.00 ($5.00 for MSWMA and $2.00 for City). 2) Authorize City Manager to sign a contract amendment with Solid Waste Systems Inc. authorizing the per cubic yard fee of $16.24 plus surcharges of $1.26 ($0.90 for MSWMA and $0.36 for City). 3) Approve other rates as listed on the accompanying rate schedule (Attachment 2). 4) New rates are in effect for three years and are reviewable at the end of that term at the City's option. 5) The CPI Adjustment, Section 4.02, of the contract is applicable to the adjusted rate on the same basis as before the adjustment with the first such adjustment to occur at the end of the twelfth month following the effective date of the current fee increase. 6) Amend Article XIV, Section 14.01 to read: Term of Contract. The term of the Contract shall continue until September 30, 2016, unless terminated earlier pursuant to terms of the Contract. ALTERNATIVE COUNCIL POLICY OPTIONS: Provide Alternative direction to staff. Citizens Advised: Mendocino Solid Waste Management Authority Requested by: Solid Waste Systems, Inc. Prepared by: Gordon Elton, Finance Director Coordinated with: Council Ad Hoc Solid Waste Committee; Jane Chambers, City Manager; Emmett Jones, Consultant Attachments: 1) C&S Waste Solutions Memo; 2) Transfer Station Rate Schedule. 3) Rate Comparison schedule for other Transfer Stations. Approved: nr ne Cha bers, City Manager ITEM NO: 11C Meeting Date: August 18, 2010 Background: The initial basis for the increase is the cost of disposal at the Potrero Hills Landfill at $32.87 per ton as of February 1, 2010, which is ten dollars more than the current transfer station contract rate anticipates. Transportation costs between Ukiah and the Landfill are $19.91 per ton, $7.23 more than anticipated in the current transfer station contract rate. Also, the Mendocino Solid Waste Management Authority (MSWMA) surcharge increased from $4.50 per ton to $5.00 per ton. Except for changes to the MSWMA surcharge or the City landfill surcharge, the provisions of the City's agreement with Solid Wastes Systems, Inc., for the operation of the Transfer Station, do not provide a mechanism for addressing cost increases which exceed the automatic 50% of CPI increase. The current gate fee of $11.80 per cubic yard for self-haulers fails to account for the higher costs of accepting and processing waste from self-haulers as. compared to the cost of accepting and processing compacted waste from franchised waste haulers. These higher operational costs include the following. The Saturday hours primarily serve the self haul customers and add 20% to the total operating hours. Additional services provided at the transfer station, such as motor oil, battery, and oil filter recycling, electronic waste recycling, tire recycling, and appliance recycling, are primarily oriented to the self haul customer. Garbage delivered by self haul customers contains significant amounts of recyclable materials. SWS staff routinely extracts these materials from the garbage and diverts them to the recycling program, thereby adding significant cost to the waste diversion program. The popularity of these various programs for self-haulers also results in an increase in the number of customers passing through the gate and, therefore, significantly increases the operating costs. Attachment #1 lists accomplishments and future challenges of both the Transfer Station and the Curb-side collection operation. Some interesting improvements are related to the recycling activities: Diversion of an average of 30% of the waste stream delivered to the transfer station; recycling of carpets, asphalt shingles, mattresses, clothing, and porcelain; and, establishment of the salvage shop. Combined operations in the Ukiah area created 46 jobs (full-time with benefits). Process: Staff received additional information from SWS representatives explaining their request. Subsequently, staff reviewed the request and prepared an alternate calculation which was presented to SWS staff and to the Solid Waste Ad Hoc Committee, consisting of Mayor Thomas and Council member Landis. According to the SWS reviewed financial statements, SWS experienced a net loss of more than $520,000 in 2009. The loss from operations, before interest and amortization, was $307,000. Additional operating expenses to be incurred for 2010 were identified and result in a projected operating loss of $350,000 for 2010, if rates are not adjusted. Staff reviewed the relationship of compacted waste (primarily from franchised haulers) charged at a per ton rate and non-compacted waste (primarily from self-haulers) charged at a per cubic yard rate, and the related fees. This review determined that the current per cubic yard rate for self-haulers does not cover the increased operational costs of accepting their waste, diversion, and recycling, and that the per cubic yard rate should be increased to Page 2 of 4 ITEM NO: 11e Meeting Date: August 18, 2010 recover more of those costs from self-haulers. The City staff proposed an alternative to the proposal from SWS staff to produce the necessary revenue and provide more balance to the charges for garbage processing as between self-haulers and franchised waste haulers. Staff and the Solid Waste Subcommittee have reviewed information provided by the collection company in support of a rate adjustment to compensate for increased operating expenses. City staff met with SWS officials on July 30 and received their concurrence with the revised rate structure. The Solid Waste Ad Hoc Committee met on August 3rd and reviewed the proposed adjustments. This information is the basis for the final proposal for a rate adjustment. SWS originally proposed a total increase of $17.78 per ton. After considering structural changes to the Transfer Station revenues, staff met with SWS officials and revised the recommended tipping fees to $74.50 per ton and $17.50 per cubic yard. Transfer Station Fee Change Rate er Ton Rate per Cubic Yard Current Proposed Current Proposed Transfer Station Operations 55.72 67.50 11.13 16.24 MSWMA 4.50 5.00 .67 .90 City Landfill Operating Expenses -0- 2.00 -0- .36 Total 60.22 74.50 11.80 17.50 A complete rate schedule is included as Attachment #2 for review. Attachment #3 presents a comparison with other transfer station rates in the County. If the 2009 volume of garbage delivered to the transfer station remains constant, these fees will produce approximately the requested level of revenue. The amount of garbage brought to the transfer station decreased in each of the past three years. City staff is recommending the additional fee of $2.00 per ton to provide funding for expenses related to the City landfill which were incurred since the landfill ceased accepting garbage. This additional fee will provide approximately $60,000 per year. The proposed fee, per compacted ton of garbage, is $74.50 and $17.50 per cubic yard for non-compacted garbage. This rate will require a 6.22% rate increase for City of Ukiah curbside customers to fund the increased transfer station gate fee charged to the collection company. Another component of the revenue is the minimum gate fee. The minimum gate fee was established as the fee for up to three 32 gallon containers. Assuming that 32 gallons equals .18 cubic yards, six 32 gallon containers are equivalent to 1.1 cubic yards. At the proposed cubic yard rate of $17.50, six containers would cost $19.30 or $3.22 per container. To establish a minimum fee for 3 containers, staff rounded this calculation down to $9.00 with a fee for each additional container of $3.00. This minimum fee is intended to apply to all garbage delivered to the transfer station. The gate attendant determines how each load is computed and when more than the minimum fee applies. Since most garbage is not delivered in containers, the gate attendant will continue to determine the volume of garbage and apply the per cubic yard rate. Those customers who deliver their garbage in containers can readily determine their cost in advance. Page 3 of 4 ITEM NO: 11C Meeting Date: August 18, 2010 In addition to rates, clarification of the contract term for SWS's operation of the Ukiah Transfer Station is also needed. Article XIV of the Transfer Station Agreement establishes the term of the agreement as 15 years from the date the Transfer Station began operations. Staff recommends changing this wording to a date certain to eliminate any discussion, consideration, or confusion about the applicable date. In summary, conditions in the transfer station business have changed significantly since the transfer station contract was last amended in 2001. Recycling is a significant component of transfer station operations. Revenue from recycling is cyclical and, therefore, unpredictable. Waste delivered to the transfer station has decreased in the past three years. Disposal fees (tipping fees) at the Potrero Landfill are more than 50% higher than in 2001. The transfer station operator has established programs and services to actively assist the community in reaching the mandated recycling levels and plans to continue programs to achieve higher levels of recycling. The operating expenses of the transfer station justify an adjustment to the rate. The self haul customers drive a significant component of the operating cost and should provide an appropriate share of the operating revenue. The revenue from the proposed rates is necessary to maintain a viable transfer station operation. Transfer Station Fees Current Proposed Increase Per ton of compacted garbage * 60.22 74.50 14.28 Per cubic and of non-compacted garbage 11.80 17.50 5.70 Minimum ate fee 3 cans 5.50 9.00 3.50 Green waste - per ton 38.40 38.40 0.00 Green waste - per cubic and 5.60 5.60 0.00 Fees for additional services are established b the Transfer Station operator * Proposed rate includes $2.00 per ton for City landfill costs Proposed rate includes $ .36 per cubic and for City landfill costs The $14.28 per ton increase is distributed as follows: City Landfill operating expenses $ 2.00 Mendocino Solid Waste Management Authority $ .50 Transfer Station operating expenses $ 11.78 Staff recommends that the City Council approve the proposed contract amendment, including the proposed rate schedule to take effect no earlier than September 1, 2010, and establish September 30, 2016, as the end of the current term of the transfer station contract. Page 4 of 4 ATTACHMENT August 2, 2010 Mr. Gordon Elton Finance Director City of Ukiah 300 Seminary Drive Ukiah, CA 95482 RE: Rate Review and Future Activities Dear Gordon: As a follow-up to your meeting last Friday with Dave Carroll and Jack Simmons, attached please find the supplemental information you requested. Also attached is a Third Year Review Summarv which outlines various accomplishments we have realized since assuming operations. We believe this may be useful to the Council in their review of this matter. We are quite pleased to have located our company headquarters, including administrative, maintenance and storage facilities, in Ukiah, as well as successfully constructed a state-of-the-art Material Recovery Facility (MRF) in the community. As you know, our recovery facility also has a wood, green waste and shingle grinding component and we are producing greenwaste compost locally. These improvements have enabled us to add about 50 employees to our Ukiah operations. We are a local business that believes strongly in keeping our dollars in our community; we purchase products and services from local businesses wherever possible and encourage others to do the same. Thank you for all of your work in reviewing our request. We look forward to having the Council review this on August le. Following the rate review process, we are eager to move forward with discussions concerning a number of related issues, including: • The exploration of the feasibility of reopening the Ukiah landfill and other long-term options, including technological improvements that will best assure adequate disposal space is available in the future. • Our continuing interest in purchasing the City's option on the Transfer Station or otherwise arranging a long-term lease of the facility which provides for a foundation for future improvements. • Drafting of new agreements that better reflect current issues and practices, including a long- term arrangement that will facilitate making substantial investments necessary to operate technologically advanced diversion programs. P.O. Box 60 / Ukiah, CA 95482 Phone 707-234-6400 / Fax 707-234-6404 1 candswastesolutions.com I v e Thank you again for your time and attention to this matter. Should you have any questions or desire further information, please do not hesitate to contact me: Sincerely, Wili P ce S Waste Solutions cc: Jane Chambers, City Manager Benj Thomas, Solid Waste Subcommittee Mary Anne Landis, Solid Waste Subcommittee Memo To: Gordon Elton, Finance Director, City of Ukiah From: Julie Price, C&S Waste Solutions CC: Date: August 5, 2010 Re: Supplemental Information This is to provide you with answers to questions you had stemming from the rate review process, including some pertinent facts related to our commitment to Ukiah and operating as a local company. As you know, since assuming operations a couple of years ago, we located our customer support and accounting offices in the community: Additionally, we have successfully constructed a state-of-the-art Material Recovery Facility (MRF) in Ukiah. This facility also includes a wood and greenwaste grinding component as well as an asphalt shingle grinding operation. On an adjoining parcel, we have established our truck repair and maintenance operation as well as our dispatch operations and fleet storage. We also began operating a local greenwaste composting site and opened a reuse store at the transfer station which has been very well-received by the community. We.use local contractors and consultants and purchase all supplies and parts from local businesses whenever possible. Our activities have added forty-six (46) full-time jobs in the community and each of our employees is offered a comprehensive Blue Cross Health Plan plus dental and vision plans for employees and their families, a 401k plan, paid holidays, vacation accrual and sick leave benefits. With regard to your question about the potential for increased illegal dumping, we are not overly concerned that this will occur after the new rates are in effect. In our experience, those in the community who are inclined to dump illegally will likely do so irrespective of price and we have not witnessed a significant increase in such activities in other communities when pricing is adjusted. More importantly, we consider that a modest amount of abatement work to be part and parcel to our relationship with the City, and we will work cooperatively to assist in cleanups without concern for payment. Although all of this is hard to quantify and predict, if the amount of cleanup activity was' such that It became a significant expense for us, we might request the City's Page1 Memo to Gordon Efton, Cfty of Uklah August 5, 2010 Page 2 consideration of some remuneration to cover actual costs. In no event will we use the cleanup of illegal dumping as a means to generate profit. If the illegal dumping occurs in the unincorporated area, not covered by our franchise, we will take the same cooperative approach with the County of Mendocino. In the final analysis, illegal dumping has not presented a large problem at this point and we suggest taking a "wait and see" approach with the understandings as outlined above. We are committed to the well-being of Ukiah and look forward to our continued role as an integral part of the economic and social fabric of the community. P.O. BOX 60, UKIAH, CA 95482 PHONE V07)234-6400 • FAX V07)234-6404 www.candswaste.com I~ ti SUMMARY OF OPERATIONAL ACCOMPLISHMENTS AND FUTURE CHALLENGES 1. ACCOMPLISHMENTS A. Operational and Technical Improvements • Constructed and began operating a state of the art Material Recovery Facility (MRF) • Purchased and began operating a wood, green waste and asphalt shingle grinding yard • Began operating a locally-sited greenwaste composting facility • Opened a non-ferrous metal buyback center at the Transfer Station • Purchased a metal baler/logger to reduce transportation costs • Upgraded all equipment at the Transfer Station - loaders, tractors and trailers • Installed new radio communication system in trucks to improve customer service • Installed IP based "Palm Scan" time clocks at all facilities to ensure accurate recording of hours worked • Installed industry specific solid waste computer system • Installed industry specific computerized scale system at the Transfer Station • Installed industry specific computerized buy-back system at the Transfer Station 4! Installed Internet based IP phone system, networking all facilities • Implemented a commercial cardboard and film plastic collection program • Assumed full responsibility of the electronics recycling program • Moved and consolidated the maintenance shop and administrative offices • Expanded the buy-back hours at the Transfer Station to include Mondays 8.. Customer Service Improvements • Developed a comprehensive website (www.candswaste.tom) to better inform customers and provide online payment options such as a-check or credit cards • Began accepting payment by credit card at the Transfer Station • Hired a full time Regulatory Compliance/Recycling and Outreach Coordinator - Julie Price • Worked closely with City Parks staff to improve efficiency of recycling at City of Ukiah Sports Complex, including providing additional containers for special events • Company representatives designated to work directly with City staff to resolve any City or service related issues • Initiated monthly meetings with City Public Works staff to ensure any potential solid waste issues are addressed • Initiated 10-gallon fully automated cart option for residential collection • Purchased new 20-gal carts for curbside program, eliminating need for 20-gal insert Page 1. C. Maintenance Improvements • Repaired, cleaned, organized, painted, replaced or recycled everything from the previous operator • Upgraded collection fleet to obtain California Air Resources Board (CARB) compliance • Initiated program to assure bins and carts are continually and regularly cleaned, painted and repaired as needed or requested. Still work to be done!. • Purchased a DPS cleaner to clean exhaust filters on trucks and reduce maintenance costs • Purchased a plastic welder to repair broken carts when possible .D. Diversion Achievements • Diverted on average 30% of the total waste stream delivered to the Transfer Station due to floor-sorting activities • Began recycling carpet & carpet padding, asphalt shingles, mattresses, rigid plastics, film plastics, clothing, cell phones and cell phone batteries, and porcelain (ie; toilets & sinks) • Opened the salvage shop (re-use store) at the Transfer Station once per month in the winter and twice per month in the summer • Assisted the City with waste audit by the CIWMB which the City passed due to floor-sorting activities at SWS E. Civic Activities • Created 46 full-time jobs with benefits in Ukiah: accounting, customer service, MRF, transfer station, wood & green waste grinding, maintenance, outreach & education • Comet Level Sponsor of Moonlight Movie Madness • Gold Level Sponsor of North Coast Green Opportunities Conference, co-sponsored by City • Silver Sponsor of Comedy Alley, a Ukiah Main Street Program, provided free recycling services for events • Participated in Pumpkinfest, including educational booth and parade • Member, South Ukiah Rotary • Donated compost to NCO's The Garden Project for the development of new community gardens. A Outreach and Education Activities • Provided MRF tours to local schools, organizations and businesses • Provided recycling and waste reduction presentations to:local organizations (e.g.; Rotary, Ukiah Natural Foods Co-op) • Provided residential recycling guide for inclusion in City utility bills, May 2009 • Provided recycling guide in City's Parks and Recreation Guide • Developed and maintained a Facebook site that provides information and ideas to customers about reducing, reusing and recycling Page 2 II. Continuing and Future Challenges • Reduced volume of material due to downturn in economy. • Financial status of the State of California and it's affect on the viability of recycling. • Increased container downsizing and other factors have led to increased contamination of curbside recycling and yard waste containers, including electronic waste. A route auditor is needed to reduce contamination and increase operational efficiency. • Due to a high demand for recycling information and the need to increase recycling in UUSD schools, the education and outreach program should be expanded (refer to existing contract re: recycling education). • As requests for public presentations, outreach efforts, facility tours, literature and help . with waste assessments grow, it will be necessary to increase staffing to accommodate this need. • Need to maintain CARB compliance for all equipment and prepare for potential future CARB compliance rules. • Expanded diversion activities have reduced available space at the Transfer Station. More covered space for metal and other materials is needed. 08/2010r Page 3 ATTACHMENT-. Solid Waste Systems, Inc. Rate Schedule 2009-10 2010-11 Item Rate Rate Chan e MSW- Ton $ 60.22 $ 74.50 $ 14.28 MSW- Yard . $ 11.80 $ 17.50 $ 5.70 Minimum Gate Fee (up to 3 cans) $ 5.50 $ 9.00 $ 3.50 Per Can Rate - 32 gallon (after 3 cans) 3.00 $ 3.00. Green Waste - Ton $ 38.40 $ 38.40 $ - Green Waste - Yard $ 5.60 $ 5.60 $ - 'Minimum Gate Fee - Green Waste. $ 5.50 $ 5.50 $ - Mixed Load - Additional Charge $ 17.20 $ 17.20 $ - Appliances $ 15.30 $ 15.30 $ - Oil Filters - Small $ 0.35 0.35 $ - Oil Filters - Medium $ 0.60 $ 0.60 $ - Oil Filters - Large $ 0.85 $ 0.85 $ - Concrete - Ton $ 60.22 $ 60.22 $ - Dirt - Ton $ 60.22 $ 60.22 $ - Sheetrock - Clean $ 38.40 38.40 $ - Sheetrock - Dirty $ 60.22 $ 60.22 $ Tires - Bicycle $ 1.10 $ 1.10 $ - Tires - Motorcycle $ 2.10 $ 2.10 $ - Tires - Passenger Car $ 3.10 $ 3.10 $ - Tires - Passenger Car with Rim $ 4.90 $ 4.90 $ - Tires - Truck $ 6.70 $ 6.70 $ - Tires - Truck with Rim $ 9.00 $ 9.00 $ - Tires - Tractor 40.00 - 300.00 40.00 - 300.00 $ - E-Waste - Computers No charge No charge $ - E-Waste - Monitors No charge No-charge $ - Scrap Metal No charge No charge $ - Fees Included in the per ton rate City of Ukiah surcharge $ - $ 2.00 $ 2.00 MSWMA surcharge $ 4.50 5.00 $ 0.50 Fees Included In the per cubic yard rate City of Ukiah surcharge $ - $ 0.36 $ 0.36 MSWMA surcharge $ 0.67 $ 0.90 $ 0.23 ATTACHMENT c H V CL O V N c O 40 m N s. H c co H a` r ~o CL o m N ,fl ~j U Q v ~ C> C q m ~'01~ GJ c . O f c P 4) c vi o O U U F- n a 40- ~ o ci c ' L N O F N I N p c i' 3 X12 f0 r to o Y. C 'r ~ n N m c T m m ` v C7 a ~ FN- N O 4O U O O ~ Z N V} Id1 t/~ O ~ O Z N v~. t O o Q 00 Z ~ O O OC 44 000 °O W r ~ JdA Yr Lfl 12: d'' is N c V M i°- L `cg E a a°' ~ ~z N ~ 0 t O. ~ O U ~ a V U L V ICI a c~ a) L. m a a Q 0 . m . -L N = r m a M N N lV-1 O 'A V Vf -VA o f A as O o, 0 1 J 0 ~ CL 4a W J LL. a9~ O 4-1 m a H s ti Lo r p O 8 W 3 N O M W dp N V16 N r-I rl rq %-t V/ V/ V~ i/} ITEM NO. 11d DATE: August 18, 2010 Citi~ o/ ukiiih AGENDA SUMMARY REPORT SUBJECT: DISCUSSION AND POSSIBLE ACTION TO PROVIDE NOTICE AND CONDUCT A HEARING ON PROPOSED CURBSIDE WASTE COLLECTION FEE INCREASES PURSUANT TO PROPOSITION 218 AND DIVISION 4, CHAPTER 6, ARTICLE 1 OF THE UKIAH CITY CODE, COMMENCING WITH SECTION 3950 Overview: The City's franchised waste hauler, Ukiah Waste Solutions, Inc. ("UWS"), collects garbage and curbside recyclables within the City. The City's amended contract with UWS ("the Contract") provides for periodic rate adjustments. Under Section 4 of the Contract, UWS receives an automatic annual cost of living increase in the rates it can charge to city residents equal to 75% of the percentage change in the Consumer Price Index ("CPI') from the previous year. Every three years, the City Council is required to conduct a rate hearing to determine whether that increase is either too much or not enough to fairly compensate UWS for the cost of collecting garbage and recyclables from within the City. Under the contract, the current 3 year rate review is to be completed by October 2010. As described in more detail below, the City staff is proposing a rate increase only to account for the proposed increase in the gate fee at the Ukiah Transfer Station which is operated by Solid Waste Systems (""SWS") a company affiliated with UWS. Only the CPI increase would apply for the next two years. The City conducts the three year rate review pursuant to Ukiah City Code ("UCC') Sections 3950-3957, which requires, 10 days prior to a scheduled hearing before the City Council, a notice published in the newspaper and a City Manager's Report available to the public Continued on paae 2 RECOMMENDED ACTION: 1) Direct staff to mail the Prop 218 notice to the appropriate customers 2) Set Wednesday, October 20, 2010 as the date for the Public Hearing to consider adoption of the curb-side aarbaae and recvclina collection rates ALTERNATIVE COUNCIL POLICY OPTION: Identify and adopt an alternate rate adjustments or alternate public hearing dates Requested by: Ukiah Waste Solutions Inc. Prepared by: Gordon Elton, Finance Director Coordinated with: Council Solid Waste Committee; Jane Chambers, City Manager; Emmett Jones, Consultant Attachments: 1) Prop 218 Notice; 2) Proposed Rate Schedule; 3) Rate comparison with surrounding areas Approved: (=o J e Ch tubers, City Manager ITEM NO: 11d Meeting Date: August 18, 2010 containing information about the proposed rate change. Additionally, the charges for garbage service in the City may be a "'property-related fee," subject to the notice and hearing requirements in Article XIII.D, Section 6, of the California Constitution, which was enacted by Proposition 218. To avoid any question about the procedures used to increase garbage rates in the City, it has elected to follow these procedures, in addition to the procedures in the Ukiah City Code, when considering a rate increase for garbage collection. Proposition 218 requires mailing a notice to customers at least 45 days prior to the date of the public hearing. This notice must identify the proposed rate changes and describe the process customers must follow if they wish to object to the rate change. The notice proposed by City staff is included as Attachment 1. The notice will be translated into Spanish and both the English and Spanish version will be mailed to the property owners and customers. Background: The provisions of the City's franchise agreement with Solid Wastes Systems, Inc., for the collection, transportation and disposal of garbage and the recycling of recyclable materials within the City limits of Ukiah requires that an annual adjustment be made to the garbage and recycling collection rates. In two of every three years, this adjustment is equal to 75% of the percentage change in the U. S. Department of Labor, Bureau of Statistics, Consumer Price Index (CPI-U), U. S. City Average, June to June (Contract CPI). Every third year, the City Council shall conduct a rate hearing pursuant to UCC Sections 3950- 3957 to determine what, if any, adjustment should be made to the garbage collection and recycling rates, taking into consideration the annual audits of the contractor's operations and all other factors deemed relevant by the City Council. In fiscal year 2001/2002, the Refuse Collection and Recycling Franchise Agreement was modified to require the implementation of single-stream recycling with the resultant changes in the sizes of containers available for specific containers designed for use with a mechanical arm on the collection truck. The small ten-gallon containers were maintained to encourage recycling efforts. The fee schedule was revised in December 2001 to accommodate these standardized containers. The fee schedule adopted at that time utilized the gallons per week approach to determine the fee, which provides a simple method for computing a customer's cost. The size of the container(s) times the number of containers times the number of pickups per week equals the number of gallons per week. The total gallons per week times the rate per gallon for the calculated quantity equals the monthly fee. Container sizes are: 10 gallons, 20 gallons, 32 gallons, 68 gallons, and 95 gallons. Multiple containers are allowed for commercial customers needing more than 95 gallons per pickup. Under special circumstances, customers requiring multiple smaller containers are allowed. The basic concept of promoting recycling efforts by reducing the cost for customers who dispose of less garbage is retained in the proposed fee schedule. In 2008, a plan for meeting the Air Resources Board Refuse Rule to reduce emissions from diesel powered equipment was developed. The plan replaced the existing fleet of three side- loader trucks, one front-loader truck, one container delivery truck, one roll-off truck, and a back-up side-loader truck and a back-up front-loader truck, which are shared 50% with non- Page 2 of 3 ITEM NO: 11d Meeting Date: August 18, 2010 Ukiah locations, with later model used vehicles retrofitted to meet the State emission requirements. This plan was completed. Discussion: To evaluate the fee increase requested by UWS for fiscal year 2010/2011, the City Finance Director, the City Manager, and Emmett Jones, a CPA and consultant with experience in waste collection accounting, met with UWS, reviewed the request and submitted a recommendation to the Solid Waste Ad Hoc Committee, consisting of Mayor Thomas and Council member Landis. Initially UWS requested a 7.75% increase in the curb-side collection rates to offset the requested cost adjustment at the transfer station which is primarily needed due to the increase in disposal fees at the Potrero Landfill. Staff requested additional information from UWS representatives to understand the operating costs of the collection company. Staff performed an analysis of the request and prepared a revised calculation based on the revised proposal for transfer station costs. This revised increase of 6.22% was presented to the Solid Waste Ad Hoc Committee at the meeting on August 2nd. The proposed 2010 adjusted rate schedule is included as Attachment 2. After the proposed rate increase, the rates for garbage service in Ukiah remain significantly lower than in Willits, Lakeport, Fort Bragg, or the surrounding unincorporated area of Mendocino County (Attachment 3). The calculation for the currently proposed rate increase was developed for the period beginning November 2010. The CPI based increases included in the franchise agreement will apply for October 2011 and October 2012. These CPI based increases are also identified in the Prop 218 notifications. Any rate adjustment in 2013 will be considered at a 3-year rate hearing. Sample of proposed month) Curb Service rates * Current Proposed Increase Minimum week) fee 4.15 4.41 .26 10 gallon week) service 4.15 4.41 .26 20 gallon week) service 8.72 9.26 .54 32 gallon week) service 15.68 16.64 .96 One and bin week) service 103.62 110.07 6.45 One and a half and bin week) service 122.46 130.08 7.62 Rate per and for two and or larger bins 81.64 86.72 5.08 * Pack-out and Remote area service have higher rates see attached schedule for details Approximately 87.5% of the residential garbage customers utilize a 32 gallon or smaller container. Therefore, the majority of customers will experience an increase of $.96 per month or less. This equates to three cents (34) per day. The increase for a customer with the 10 gallon weekly service is less than a penny a day additional. Staff recommends the Council approve the proposed rate schedule for distribution and schedule the public hearing on the proposed garbage collection rates and fees for Wednesday, October 20, 2010. Page 3 of 3 ATTACHMENT, L. City of Ukiah NOTICE OF PROPOSED INCREASE IN RATES FOR SOLID WASTE COLLECTION AND DISPOSAL SERVICE NOTICE IS HEREBY GIVEN that the City of Ukiah ("City") proposes to increase solid waste collection and disposal (garbage) rates applicable to all parcels in the City of Ukiah, including the parcel for which you are shown as the property owner of record based on the County of Mendocino 2009/2010 Secured Tax Roll, and/or at which you are shown as the customer billed for garbage service. If adopted, the rate increases will be reflected on utility bills dated on or after November 1, 2010. NOTICE IS FURTHER GIVEN that on October 20, 2010, at 6:15 p.m. or as soon thereafter as the matter may be heard, at 300 Seminary Avenue, Ukiah, California 95482, in the City Council Chambers, the City Council will conduct a public hearing on the proposed rate increase. At the public hearing, the City Council will consider all written protests against the proposed fee or charge, and all other comments submitted in writing prior the hearing or expressed during the hearing. If written protests against the proposed fee or charge are presented by a majority of owners, including renters, of the identified parcels, the City will not impose the fee or charge. The City will consider only one protest per parcel, even if it receives protests from more than one owner or tenant of that parcel. If you want to file a written protest, prior to the hearing, you must submit the protest to the City Clerk at the Ukiah Civic Center, 300 Seminary Ave. Ukiah CA 95482. You may also submit a written protest at the hearing. To be considered, the written protest must include your name, the address or Mendocino County Assessor's parcel number of the parcel you own or rent, a representation that you are the legal owner of the parcel or that you are a lawful renter of the property who pays the garbage bill, a statement that you protest the proposed rate increase, and your signature. The City reserves the right to verify whether any person filing a protest is an owner or a renter legally obligated to pay the fee. To assist with this verification, the City requests inclusion of the applicable utility account number on the protest. The Amount of the Fee Imposed on Each Parcel: The proposed rate increase as of November 2010 is 6.22%. The increase for subsequent years, including October 2011 and October 2012, will be based on 75% of the percentage change in the Consumer Price Index ("CPI") over the previous year, in accordance with the Contract for Collection, Transportation and Disposal of Garbage, Refuse and Rubbish and Recycling of Recyclable Materials from within the City of Ukiah, originally dated March 23, 1992 ("Waste Collection Contract"). After the October 2010 rate increase, the City Council may conduct a rate hearing in accordance with the Ukiah City Code and California Constitution Article XIII.D.6, and make further adjustments in the rate. In the absence of a subsequent rate hearing, the rates will automatically increase each year in accordance with the Waste Collection Contract (see below). The City Council may reduce the amount of the annual increase by conducting a rate hearing in accordance with the Ukiah City Code. The following table indicates the existing and proposed monthly solid waste service rates for residential and commercial service to each parcel in the City of Ukiah: Residential Service Current October 2010 Current October 2010 Current October 2010 Service Level Curb service Pack-out service Remote Service No service $ 4.15 $ 4.41 $ 6.40 $ 6.80 $ 12.80 $ 13.60 1-10 gallon service 4.15 4.41 6.40 6.80 12.80 13.60 11-20 gallon service 8.72 9.26 10.94 11.62 17.34 18.42 21-32 gallon service 15.68 16.64 19.20 20.38 25.60 27.18 33-68 gallon service 36.99 39.30 45.08 47.87 51.48 54.67 69-95 gallon service 52.16 55.39 65.08 69.16 71.48 75.96 96 + gallon service $.606/ al $.644/ al $.685/ al $.728/ al $.685/ al * $.728/ al 1 and bin $ 103.62 $ 110.07 N/A N/A N/A N/A 1.5 and bin 118.01 130.08 N/A N/A N/A N/A Larger bins at per yard rate 81.64 86.72 N/A N/A N/A N/A * plus remote service fee of $6.40 which is changing to $6.80 Miscellaneous and Special Services will also increase b 6.22% The Reason for and Basis Upon Which the Fee Increase was Calculated: The proposed rates were calculated based on the Waste Collection Contract with the City's franchised waste hauler, which is a private company. Under that agreement, rates are adjusted as follows. Unless altered by the City Council at a rate hearing, which may be held once every three years, rates are automatically adjusted by seventy-five percent (75%) of the percentage change in the CPI from the previous year*. At the optional rate hearing, the City Council may consider the annual audit of the waste collection business and any other financial information considered relevant by the City Council, to determine whether the rates fully compensate the franchised waste hauler for the cost of providing the service. If the rates were adjusted for the period commencing October 2010 by 75% of the CPI, the rates would increase by .79%. The higher proposed rate increase was calculated by carefully evaluating the annual audit for the period ending December 31, 2009, and the increased gate fee at the Taylor Drive Transfer Station. The proposed increase represents only the cost of the increased gate fee. * U.S. City Average Consumer Price Index (CPI-U) from June to June. r Ukiah Waste Solutions, Inc. 2010 Adjusted Rate Schedule RESIDENTIAL / COMMERCIAL Re.gidential Carts l.~l': 10 20 lx/WK lx/WK 32 lx/WK Roadside 4.41 9.26 16.64 Pack Out* 6.80 11.62 20.38 Remote** 13.60 18.42 27.18 • Pack Out service is limited to the elderly and disabled who apply directly through Ukiah Waste Solutions @ 707.234.6400. The additional charges of Remote service may be required for certain areas with difficult access. ATTACHMENT Z' 68 95 Gallons ix/WK 1x/WK 39.30 55.39 47.87 69.16 54.67 75.96 :cif' n ' ' 10 Gal 20 Gal 32 gal 64 gal 96 gal 1 Can -1x/WK 4.58 9.60 17.27 40.81 57.52 1Can-2x/WK 38.39 90.86 127.86 1 Can - 3x/WK 64.13 139.32 194.62 2 Cans -1x/WK 38.39 90.86 127.86 Commercial Bins Yards Number of pick-ups per week Extra Dollars / Yard ix/WK 2x/WK 3x/WK 4x/WK Sx/WK 6x/WK Pick-up 110 $110.07 110.07 0.00 0.00 0.00 0.00 0.00 25.42 1.5 $86.72 130.08 260.16 390.24 520.32 650.40 780.48 30.04 2.0 $86.72 173.44 346.88 520.32 693.76 867.20 1,040.64 40.06 3.0 $86.72 260.16 520.32 780.48 1,040.64 1,300.80 1,560.96 60.08 4.0 $86.72 346.88 693.76 1,040.64 1,387.52 1,734.40 2,081,28 80,11 6.0 $86.72 520.32 1,040.64 1,560.96 2,081.28 2,601.60 3,121.92 120.17 Extra p/u calculated at i/wkdivided by 4.33 New Rate Clean-Up Bins and Boxes 2010 3.0 Yd 3 day rental 90.00 15.0 Yd 7 day rental 203.94 Plus $74.50 per ton tip fee 20.0 Yd 7 day rental 203.94 Plus $74.50 per ton tip fee 30.0 Yd 7 day rental 203.94 Plus $74.50 per ton tip fee Compactors 203.94 Plus $74.50 per ton tip fee New Rate Mist: Charges 2010 Bulky items (appliances, LgTires, Furniture etc..) 22.64 Plus tip fee Tires - each - (Automotive or motorcycle) 4.77 Damage Cart Replacement 61.51 Extra Residential Pick-up 5.91 Extra Commercial Pick-up 11.03 Compactor Cleaning 265.55 Container Cleaning 95.60 Locking bin, one-time setup fee 30.27 Plus Materials Replacement. Key 10.62 Contamination Pee 30.32 Returned Check Fee 35.00 Roll Off or Bin Extra Day Charge 11.03 Exchange Cart Size 22.74 CITY OF UKIAH PROPOSED NOTICE of Public Hearing to consider amendment of Garbage Rates. On October'20, 2010, at 6:15 p.m. or as soon thereafter as the matter may be heard, at 300 Seminary Avenue, Ukiah, California 95482, in the City Council Chambers, the. City of Ukiah ("City") proposes to increase solid waste collection and disposal (garbage) rates in. the City of Ukiah. If adopted, the rate increases will be reflected on utility bills dated on or after October 31, 2010. A copy of the City Manager's report is on file with the City Clerk for public review. PROPOSED RATE STRUCTURE No service/ 10-gallon 20-gallon 32-gallon 68-gallon 95-gallon Service Type minimum fee container container container container container (basic fee) Curb Sevice Current Rate 4.15 4.15 8.72 15.68 36.99 52.16 Increase 0.26 0.26 0.54 0.96 2.31 3.23 Proposed rate 4.41 4.41 9.26 16.64 39.30 55.39 Packout Sevice Current Rate 4.15 . 6.40 10.94 19.2 45.08 65.08 Increase 0.26 0.40 0.68 1.18 2.79 4.08 Proposed rate 4.41 6.80 11.62 20.38 47.87 69.16 Remote Sevice Current Rate 4.15 12.8 17.34 25.6 51.48 71.48 Increase 0.26 0.80 1.08 1.58 3.19 4.48 Proposed rate 4.41 13.60 18.42 27.18 54.67 75.96 Costs for other combination of cans is based on the total Gallon capacity of the containers. 0 to 10 al. 11 to 20 al. 21 to 32 al. 33 to 68 al. 69 to 95 al. More than 95 al. Rate per gallon for combinations Curb Sevice 0.441 0.463 0.520 0.578 0.583 0.644 Packout or RemoteSevice 0.680 0.581 0.637 0.704 0.728 0.728 Additional fee: 1 ' Service fee for remote service .80 $ 6.80 $ 6.80 $ $ 6.80 $ 6.80 $ 6.80 $ 6.80 1.5 vards 1 2 Once weekly service 110.07 130.08 173.44 260.16 346.88 520.32 Multiple services per week is calculated at the once weekly service times the number of services per week Other sizes are calculated at the rate of : $86.72 per yard Listed rates are multiplied times the number of pickups per week for multiple pickup service. Debris box Container size 15 and 20 and 30 and 7 day rental fee + tipping fee Additional days $ 203.94 $ 11.03 $ 203.94 $ 11.03 $ 203.94 $ 11.03 Ripping fee is the rate charged at the transfer station Miscellaneous and Special Services Current Increase Proposed 3 and box per dump (3 day rental), includes tipping fee 126.69 (36.69 90.00 Appliances, plus tipping fee 20.54 2.10 22.64 Tires, each (up to 4 automobile or motorcycle sized on regular collection route) 4.33 0.44 4.77 Large truck sized tires or more than 4 auto/motorcycle tires special trip), plus tipping fee 20.54 2.10 22.64 Furniture and other items (special trip), plus tipping fee 20.54 2.10 22.64 Locking bin, one-time setup charge 27.47 2.80 30.27 Compactors, per dump, plus tipping fee 151 44.34 203.94 * Basic charge applies to all residences per Municipal Code Section 4443 ATTACHMENT_ c O L O. O V c~ .fl L m 0 G7 3 V d a` c au CO m L Z .e w 0 c Z 'S N v 0 c ~?p •C o c iA w V UIO m m t t! 0 0 ILL. U. _ o c, C •0 3I ~ v 2 c c ) u t O 0 ar °i O o N v ~ 3 W ~ rr-I ri N 00 N kq rl rl M w 00 W N V). N 0 M N •t/1to rt N 00 rl 00 M N N x A u u N m 11 ~a G~joJ Od, L a'O G°S Asa ~G ~ Go 0 % % L ~ by o2. o CL ~G J00 0 t0 op G a . Gy/~ GG° SG J0<1 ,oo of 'b G oaa~'m ~~o G~ ~t J le o 1% /0 ~ rJ o~nouio~no~no i~/1iM/1V iN/?iN/1111V►~~ awl x dA OA O N N M c-I ty of-- euk ak ITEM NO.: 11e MEETING DATE. August 18, 2010 AGENDA SUMMARY REPORT SUBJECT: REPORT ON THE MENDOCINO COUNTY BOARD OF SUPERVISOR'S BALLOT INITIATIVE TO IMPOSE A HALF-CENT SALES TAX AND CONSIDERATION OF THE MENDOCINO COUNTY TAX SHARING AD HOC COMMITTEE'S REQUEST TO DESIGNATE REPRESENTATIVES AND MEET TO NEGOTIATE A TAX SHARING AGREEMENT FROM THE PROCEEDS SHOULD THE MEASURE BE APPROVED On August 4, 2010, the Mendocino County Board of Supervisors took unanimous action to place an initiative ordinance on the ballot for the November 2, 2010 General Election that would impose a half- cent (.5%) sales tax if approved by a majority of voters in the County. The proposed ordinance is titled "County Vital Services Transactions and Use Tax." The sales tax would apply throughout the incorporated and unincorporated territory of the County and would sunset in ten years from the Operative Date of the tax as set forth in the ordinance. The result of the initiative would increase the sales tax rate in the City of Ukiah to 9.25% and 8.75% in the unincorporated area of the County. The sales tax revenues would be directed to the County's General Fund, unless otherwise negotiated with the various incorporated jurisdictions. The County's proposed ordinance, resolution, and corresponding agenda summary reports are included as Attachment #1 for review. At the August 4 meeting, the Board of Supervisors also considered placing an advisory measure on the ballot asking voters whether or not the sales tax proceeds collected in the incorporated cities should be split 50:50 with the respective cities. The Board unanimously voted not to place the advisory measure on the ballot and directed staff to agendize the topic of tax sharing for further discussion, including expanding the role of the current Tax Sharing ad hoc committee, and/or possible referral of the item to a standing committee, such as General Government. At the August 10 meeting, the Board voted to expand the role of the Mendocino County Tax Sharing Ad Hoc Committee which consists of Supervisors John McCowen and Kendall Smith. Specifically, the Board expanded the role of the Ad Hoc Committee, to negotiate tax sharing agreements with each incorporated city within Mendocino. Since this action, Mayor Thomas has received a letter from the Ad Hoc Committee which indicates that the "sole intent is to reach agreement to share with each city 50% of the proceeds raised within the city limits of each city" should the ballot measure be approved. The letter further requests the Council advise "at your earliest convenience your willingness to meet for this purpose and your designated representatives." The complete letter is included as Attachment #2 for review and consideration. It should also be noted that the Board of Supervisors has directed that the Ad Hoc meetings for this purpose shall be publicly noticed. Recommended Action(s): Receive report on the Mendocino County Board of Supervisor's ballot initiative to impose a half-cent sales tax and consider the Mendocino County Tax Sharing Ad Hoc Committee's request to designate representatives and meet to negotiate a tax sharing agreement from the proceeds should the measure be approved. Alternative Council Option(s): N/A Citizens advised: N/A Requested by: N/A Prepared by: Sage Sangiacomo, Assistant City Manager Coordinated with: Jane Chambers, City Manager Attachments: 1. Agenda Summary Reports; BOS August 4, 2010 Meeting 2. Letter from Mendocino County Tax Sharing Ad Hoc Committee t Approved: Ja Cha ers, City Manager Attachment # MENDOCINO COUNTY BOARD OF SUPERVISORS BOARD AGENDA #_2 ONLINE AGENDA SUMMARY -Arrangements for public hearings and timed presentations must be made with the Clerk of the Board in advance of oublic (media noticing -Agenda Summaries must be submitted no later than noon Monday, 15 days prior to the meeting date (along with electronic submittals) -Send 1 complete original single-sided set and 1 photocopy set - Items must be signed-off by appropriate departments and/or Co. Co. Note: If individual supporting document(s) exceed 25 pages each, or are not easily duplicated, please provide 7 hambcopy sets) -Transmittal of electronic Agenda Summaries, records, and supporting documentation must be emailed to: bosagenda(oco.mendocino.ca.us -Electronic Transmission Checklist ❑ Agenda Summary ❑ Records ❑ Supp. Doc. ❑ If applicable, list other online information below -Executed records will be returned to the department within one week. Arrangements for expedffedprocessing must be made in advance TO: Board of Supervisors DATE: July 14, 2010 FROM: County Counsel & CEO (Per direction of Board of SupervisorsIMEETING DATE: August 4, 2010 DEPARTMENT RESOURCE(CONTACT: Jeanine B. Nadel PHONE: 4446 Present ® On Call ❑ Steve Dunnicliff PHONE: 4441 Consent Agenda ❑ Regular Agenda ® Noticed Public Hearing ❑ Time Allocated for Item: ■ AGENDA TITLE: ADOPTION OF ORDINANCE ADDING CHAPTER 5.160 OF TITLE 5 TO THE MENDOCINO COUNTY CODE IMPOSING A COUNTY VITAL SERVICES TRANSACTIONS (SALES) AND USE TAX. ■ PREVIOUS BOARD/BOARD COMMITTEE ACTIONS: ■ SUMMARY OF REQUEST: On Tuesday, July 13, 2010, the Board of Supervisors directed County Counsel to draft a proposed ballot initiative ordinance that would impose a half-cent (0.5%) County vital services transactions (sales) and use tax. This ordinance adds Chapter 5.160 to the Mendocino County Code imposing a half-cent (0.5%) vital services transactions (sales) and use tax in the County of Mendocino. The ordinance shall be applicable throughout the incorporated and unincorporated territory of Mendocino County, California. It shall become operative only if a majority of the voters voting on the measure at an election to be called for such purpose vote to approve the ordinance. The authority to levy the tax imposed by this ordinance shall expire ten years from the Operative Date of the tax as set forth in the ordinance unless a later ordinance is adopted by the County and approved by a majority vote of the electors. This proposed ordinance has been reviewed and approved by the State Board of Equalization. ■ SUPPLEMENTAL INFORMATION AVAILABLE ONLINE AT: ■ ADDITIONAL INFORMATION ON FILE WITH THE CLERK OF THE BOARD (CHECKED BY COB IF APPLICABLE):❑ FISCAL IMPACT: Source of Funding Current F/Y Cost Annual Recurring Cost Budgeted in Current F/Y Elections BU 1410 Estimate $1000-$7000 No Yes No ■ SUPERVISORIAL DISTRICT: 1L] 2❑ 3❑ 4❑ 5❑ All® ■ VOTE REQUIREMENT: Majority❑ 4/5th5® ■ RECOMMENDED ACTION/ MOTION: Adoption of Ordinance adding Chapter 5.160 of Title 5 to the Mendocino Code for an election to present to the voters of the County a proposed ordinance titled "County Vital Services Transactions (Sales) And Use Tax" and authorize the Board Chair to sign same upon adoption. Send adopted copies to County Counsel and Assessor/Clerk-Recorder. ■ ALTERNATIVES: Do not adopt ordinance. ■ CEO REVIEW (NAME): PHONE: 463-4441 RECOMMENDATION: Agree ❑ Disagree ❑ No Opinion ❑ Alternate ❑ Staff Report Attached ❑ BOARD ACTION (DATE: ❑ Approved ❑ Referred to ❑ Other RECORDS EXECUTED: ❑ Agreement: ❑ Resolution: ❑ Ordinance: ❑ Other Revised-01/09 ORDINANCE NO. ORDINANCE ADDING CHAPTER 5.160 OF TITLE 5 TO THE MENDOCINO COUNTY CODE IMPOSING A COUNTY VITAL SERVICES TRANSACTIONS AND USE TAX The Board of Supervisors of the County of Mendocino ordains as follows: Chapter 5.160 of Title 5 is added to the Mendocino County Code to read as follows: "COUNTY VITAL SERVICES TRANSACTIONS AND USE TAX" Section 5.160.000. Findings. The Board of Supervisors of the County of Mendocino makes the following findings: 1. Section 2 of Article XIIIC of the California Constitution, Section 53723 of the California Government Code and Section 7285 of the California Revenue and Taxation Code authorize the County to impose a general sales tax upon a majority vote of the electorate. 2. Pursuant to Section 9140 of the California Elections Code, the Board may submit to the voters, without petition, a measure relating to the enactment of any ordinance. 3. This Board deems it appropriate to adopt an ordinance, pursuant to the County's taxing authority, to impose a Vital Services Transactions (Sales) and Use Tax on retail transactions in the unincorporated and incorporated areas of the County of Mendocino in order to generate revenue that will be placed in the general fund to support general County services and functions, including but not limited to, law enforcement services, help for vulnerable seniors, disabled and children, libraries and road maintenance. This Board also deems it appropriate to submit this ordinance imposing a Vital Services Transactions (Sales) and Use Tax to a vote of the electorate. Section 5.160.010. Title. This ordinance shall be known as the County of Mendocino Vital Services Transactions (Sales) and Use Tax Ordinance. The County of Mendocino shall hereinafter be called "County." This ordinance shall be applicable in the incorporated and unincorporated territory of the County. Section 5.160.020. Operative Date. "Operative Date" means the first day of the first calendar quarter commencing more than 110 days after the adoption of this ordinance, the date of such adoption being as set forth below. Section 5.160.030. Purpose. -1- This ordinance is adopted to achieve the following, general purposes, and directs that the provisions hereof be interpreted in order to accomplish those purposes: 1. To impose a retail transactions and use tax in accordance with the provisions of Part 1.6 (commencing with Section 7251) of Division 2 of the Revenue and Taxation Code and Section 7285 of Part 1.7 of Division 2 that authorize the County to adopt this tax ordinance which shall be operative if a majority of the electors voting on the measure vote to approve the imposition of the tax at an election called for that purpose. 2 To enact a retail transactions and use tax ordinance that incorporates provisions identical to those of the Sales and Use Tax Law of the State of California insofar as those provisions are not inconsistent with the requirements and limitations contained in Part 1.6 of Division 2 of the Revenue and Taxation Code. 3. To enact a retail transactions and use tax ordinance that imposes a tax and provides a measure therefor that can be administered and collected by the State Board of Equalization in a manner that adapts itself as fully as practicable to, and requires the least possible, deviation from, the existing statutory and administrative procedures followed by the State Board of Equalization in administering and collecting the California State Sales and Use Taxes. 4. To enact a retail transactions and use tax ordinance that can be administered in a manner that will be, to the greatest degree possible, consistent with the provisions of Part 1.6 of Division 2 of the Revenue and Taxation Code, minimize the cost of collecting the transactions and use taxes, and at the same time, minimize the burden of record keeping upon persons subject to taxation under the provisions of this ordinance. Section 5.160.040. Contract With State. Prior to the operative date, the County shall contract with the State Board of Equalization to perform all functions incident to the administration and operation of this transactions and use tax ordinance; provided, that if the County shall not have contracted with the State Board of Equalization prior to the operative date, it shall nevertheless so contract and in such a case the operative date shall be the first day of the first calendar quarter following the execution of such a contract. Section 5.160.050. Transactions Tax Rate. For the privilege of selling tangible personal property at retail, a tax is hereby imposed upon all retailers in the incorporated and unincorporated territory of the County at the rate of one-half cent (0.5%) of the gross receipts of any retailer from the sale of all tangible personal property sold at retail in said territory on and after the operative date of this ordinance. Section 5.160.060. Place Of Sale. -2- A. For the purposes of this ordinance, all retail sales are consummated at the place of business of the retailer unless the tangible personal property sold is delivered by the retailer or his agent to an out-of-state destination or to a common carrier for delivery to an out-of-state destination. The gross receipts from such sales shall include delivery charges, when such charges are subject to the state sales and use tax, regardless of the place to which delivery is made. B. In the event a retailer has no permanent place of business in the State or has more than one place of business, the place or places at which the retail sales are consummated shall be determined under rules and regulations to be prescribed and adopted by the State Board of Equalization. Section 6.160.070. Use Tax Rate. An excise tax is hereby imposed on the storage, use or other consumption in the County of tangible personal property purchased from any retailer on and after the operative date of this ordinance for storage, use or other consumption in said territory at the rate of one-half cent (0.5%) of the sales price of the property. The sales price shall include delivery charges when such charges are subject to state sales or use tax regardless of the place to which delivery is made. Section 6.160.080. Adoption Of Provisions Of State Law. Except as otherwise provided in this ordinance and except insofar as they are inconsistent with the provisions of Part 1.6 of Division 2 of the Revenue and Taxation Code, all of the provisions of Part 1 (commencing with Section 6001) of Division 2 of the Revenue and Taxation Code are hereby adopted and made a part of this ordinance as though fully set forth herein. Section 5.160.090. Limitations On Adoption Of State Law And Collection Of Use Taxes. In adopting the provisions of Part 1 of Division 2 of the Revenue and Taxation Code: A. Wherever the State of California is named or referred to as the taxing agency, the name of this County shall be substituted therefor. However, the substitution shall not be made when: 1. The word "State" is used as a part of the title of the State Controller, State Treasurer, State Board of Control, State Board of Equalization, State Treasury, or the Constitution of the State of California; 2. The result of that substitution would require action to be taken by or against this County or any agency, officer, or employee thereof rather than by or against the State Board of Equalization, in performing the functions incident to the administration or operation of this Ordinance. 3. In those sections, including, but not necessarily limited to sections referring to the exterior boundaries of the State of California, where the result of the substitution would be to: (a.) Provide an exemption from this tax with respect to certain sales, storage, use or other consumption of tangible personal property which -3- would not otherwise be exempt from this tax while such sales, storage, use or other consumption remain subject to tax by the State under the provisions of Part 1 of Division 2 of the Revenue and Taxation Code, or; (b.) Impose this tax with respect to certain sales, storage, use or other consumption of tangible personal property which would not be subject to tax by the state under the said provision of that code. 4. In Sections 6701, 6702 (except in the last sentence thereof), 6711, 6715, 6737, 6797 or 6828 of the Revenue and Taxation Code. B. The word "County" shall be substituted for the word "State" in the phrase "retailer engaged in business in this State" in Section 6203 and in the definition of that phrase in Section 6203. Section 6.160.100. Permit Not Required. If a seller's permit has been issued to a retailer under Section 6067 of the Revenue and Taxation Code, an additional transactor's permit shall not be required by this ordinance. Section 6.160.110. Exemptions And Exclusions. A. There shall be excluded from the measure of the transactions tax and the use tax the amount of any sales tax or use tax imposed by the State of California or by any city, city and county, or county pursuant to the Bradley-Burns Uniform Local Sales and Use Tax Law or the amount of any state-administered transactions or use tax. B. There are exempted from the computation of the amount of transactions tax the gross receipts from: 1. Sales of tangible personal property, other than fuel or petroleum products, to operators of aircraft to be used or consumed principally outside the County in which the sale is made and directly and exclusively in the use of such aircraft as common carriers of persons or property under the authority of the laws of this State, the United States, or any foreign government. 2. Sales of property to be used outside the County which is shipped to a point outside the County, pursuant to the contract of sale, by delivery to such point by the retailer or his agent, or by delivery by the retailer to a carrier for shipment to a consignee at such point. For the purposes of this paragraph, delivery to a point outside the County shall be satisfied: (a.) With respect to vehicles (other than commercial vehicles) subject to registration pursuant to Chapter 1 (commencing with Section 4000) of Division 3 of the Vehicle Code, aircraft licensed in compliance with Section 21411 of the Public Utilities Code, and undocumented vessels registered under Division 3.5 (commencing with Section 9840) of the Vehicle Code by registration to an out-of-County address and by a declaration under penalty of perjury, signed by the buyer, stating that such address is, in fact, his or her principal place of residence; and -4- (b.) With respect to commercial vehicles, by registration to a place of business out-of-County and declaration under penalty of perjury, signed by the buyer, that the vehicle will be operated from that address. 3. The sale of tangible personal property if the seller is obligated to furnish the property for a fixed price pursuant to a contract entered into prior to the operative date of this ordinance. 4. A lease of tangible personal property which is a continuing sale of such property, for any period of time for which the lessor is obligated to lease the property for an amount fixed by the lease prior to the operative date of this ordinance. 5. For the purposes of subparagraphs (3) and (4) of this section, the sale or lease of tangible personal property shall be deemed not to be obligated pursuant to a contract or lease for any period of time for which any party to the contract or lease has the unconditional right to terminate the contractor lease upon notice, whether or not such right is exercised. C. There are exempted from the use tax imposed by this ordinance, the storage, use or other consumption in this County of tangible personal property: 1. The gross receipts from the sale of which have been subject to a transactions tax under any state-administered transactions and use tax ordinance. 2. Other than fuel or petroleum products purchased by operators of aircraft and used or consumed by such operators directly and exclusively in the use of such aircraft as common carriers of persons or property for hire or compensation under a certificate of public convenience and necessity issued pursuant to the laws of this State, the United States, or any foreign government. This exemption is in addition to the exemptions provided in Sections 6366 and 6366.1 of the Revenue and Taxation Code of the State of California. 3. If the purchaser is obligated to purchase the property for a fixed price pursuant to a contract entered into prior to the operative date of this ordinance. 4. If the possession of, or the exercise of any right or power over, the tangible personal property arises under a lease which is a continuing purchase of such property for any period of time for which the lessee is obligated to lease the property for an amount fixed by a lease prior to the operative date of this ordinance. 5. For the purposes of subparagraphs (3) and (4) of this section, storage, use, or other consumption, or possession of, or exercise of any right or power over, tangible personal property shall be deemed not to be obligated pursuant to a contract or lease for any period of time for which any party to the contract or lease has the unconditional right to terminate the contract or lease upon notice, whether or not such right is exercised. 6. Except as provided in subparagraph (7), a retailer engaged in business in the County shall not be required to collect use tax from the purchaser of -5- tangible personal property, unless the retailer ships or delivers the property into the County or participates within the County in making the sale of the property, including, but not limited to, soliciting or receiving the order, either directly or indirectly, at a place of business of the retailer in the County or through any representative, agent, canvasser, solicitor, subsidiary, or person in the County under the authority of the retailer. 7. "A retailer engaged in business in the County" shall also include any retailer of any of the following: vehicles subject to registration pursuant to Chapter 1 (commencing with Section 4000) of Division 3 of the Vehicle Code, aircraft licensed in compliance with Section 21411 of the Public Utilities Code, or undocumented vessels registered under Division 3.5 (commencing with Section 9840) of the Vehicle Code. That retailer shall be required to collect use tax from any purchaser who registers or licenses the vehicle, vessel, or aircraft at an address in the County. D. Any person subject to use tax under this ordinance may credit against that tax any transactions tax or reimbursement for transactions tax paid to a County imposing, or retailer liable for a transactions tax pursuant to Part 1.6 of Division 2 of the Revenue and Taxation Code with respect to the sale to the person of the property the storage, use or other consumption of which is subject to the use tax. Section 5.160.120. Amendments. All amendments subsequent to the effective date of this ordinance to Part 1 of Division 2 of the Revenue and Taxation Code relating to sales and use taxes and which are not inconsistent with Part 1.6 and Part 1.7 of Division 2 of the Revenue and Taxation Code, and all amendments to Part 1.6 and Part 1.7 of Division 2 of the Revenue and Taxation Code, shall automatically become a part of this ordinance, provided however, that no such amendment shall operate so as to affect the rate of tax imposed by this ordinance. Section 6.160.130. Enjoining Collection Forbidden. No injunction or writ of mandate or other legal or equitable process shall issue in any suit, action or proceeding in any court against the State or the County, or against any officer of the State or the County, to prevent or enjoin the collection under this ordinance, or Part 1.6 of Division 2 of the Revenue and Taxation Code, of any tax or any amount of tax required to be collected. Section 5.160.140. Ability to Share Tax Revenue. Nothing in this ordinance shall prohibit the County from entering into agreements with the Cities of Ukiah, Fort Bragg, Willits, and Point Arena to share a percentage of the increase of the voter approved tax proceeds. Section 6.160.160. Severability. -6- If any provision of this ordinance or the application thereof to any person or circumstance is held invalid, the remainder of the ordinance and the application of such provision to other persons or circumstances shall not be affected thereby. Section 6.160.160. Sunset. The Tax imposed by this Chapter shall be imposed for ten years from the Operative Date of the tax as set forth in this ordinance and, thereafter, shall no longer be imposed. Section 6.160.170. Effective Date. This ordinance shall take effect upon adoption by the Board, or upon adoption by a majority vote of the electorate." PASSED AND ADOPTED by the Board of Supervisors of the County of Mendocino, State of California, on this day of 2010, by the following roll call vote: AYES: NOES: ABSENT: WHEREUPON, the Chair declared the Ordinance passed and adopted and SO ORDERED. ATTEST: CARMEL J. ANGELO Clerk of the Board CARRE BROWN, Chair Mendocino County Board of Supervisors Deputy APPROVED AS TO FORM. JEANINE B. NADEL, County Counsel I hereby certify that according to the provisions of Government Code Section 25103, delivery of this document has been made. BY: CARMEL J. ANGELO Clerk of the Board Deputy -7- MENDOCINO COUNTY BOARD OF SUPERVISORS BOARD AGENDA #_3 ONLINE AGENDA SUMMARY -Arrangements for public hearings and timed presentations must be made with the Clerk of the Board in advance of aublidmedia noticing Agenda Summaries must be submitted no later than noon Monday, 15 days prior to the meeting date (along with electronic submittals) -Send 1 complete original single-sided set and 1 photooopy set - Items must be signed-off by appropriate departments and/or Co. Co. Note: If individual supporting document(s) exceed 25 pages each, or are not easily duplicated, please provide 7 hard-copy sets) -Transmittal of electronic Agenda Summaries, records, and supporting documentation must be emailed to: bosagenda6ftamendocino.ca.us -Electronic Transmission Checklist ❑ Agenda Summary ❑ Records ❑ Supp. Doc. ❑ If applicable, list other online information below -Executed records will be returned to the department within one week Arrangements for expedited processing must be made in advance TO: Board of Supervisors DATE: Tuly 14, 2010 FROM: County Counsel & CEO (per direction of Board of Supervisors)MEETING DATE: August 4, 2010 DEPARTMENT RESOURCF/CONTACT: Jeanine B. Nadel PHONE: 4446 Present ® On Call ❑ Steve Dunnicliff PHONE: 4441 Consent Agenda❑ Regular Agenda ® Noticed Public Hearing E] Time Allocated for Item: A AGENDA TITLE: DISCUSSION AND POSSIBLE ACTION INCLUDING ADOPTION OF RESOLUTION REGARDING PROPOSED-BALLOT INITIATIVE TO IMPOSE A HALF-CENT (0.5%) VITAL SERVICES TRANSACTIONS AND USE TAX ■ PREVIOUS BOARD/BOARD COMMITTEE ACTIONS: ■ SUMMARY OF REQUEST: On July 27, 2010, the Board of Supervisors introduced the County Vital Services Transactions (Sales) and Use Tax Ordinance that would impose a half-cent (0.5%) transactions (sales) and use tax. This ordinance is required to be presented to the voters of the County for approval. It is necessary for this Board to call for the election by resolution. ■ SUPPLEMENTAL INFORMATION AVAILABLE ONLINE AT: ■ ADDITIONAL INFORMATION ON FILE WITH THE CLERK OF THE BOARD (CHECKED BY COB IF APPLICABLE):❑ FISCAL, ,:,IMPACT: Source of Funding Current F/Y Cost Annual Recurring Cost Budgeted in Current F/Y Elections BU 1410 Estimate $1000-$7000 No Yes No ■ SUPERVISORIAL DISTRICT: 1E] 2❑ 3❑ 4❑ 5❑ All® ■ VOTE REQUIREMENT: Majority® 4/5ths❑ ■ RECOMMENDED AcTION/MOTION: Adoption of the resolution of the Board of Supervisors of the County of Mendocino, State of California calling for an election to present to the voters of the County a proposed ordinance titled "County Vital Services Transactions And Use Tax" and ordering consolidation of said election with the statewide; general election called for November 2, 2010. Send adopted copies to County Counsel and Elections. ■ ALTERNATIVES: Do not adopt resolution. ■ CEO REVIEW (NAME): PHONE: 463-4441 RECOMMENDATION: Agree E] Disagree ❑ No Opinion ❑ Alternate ❑ Staff Report Attached ❑ BOARD ACTION (DATE: ❑ Approved ❑ Referred to ❑ Other RECORDS EXECUTED: ❑ Agreement: ❑ Resolution: ❑ Ordinance: ❑ Other _ Revised-01/09 RESOLUTION OF THE BOARD OF SUPERVISORS OF THE COUNTY OF MENDOCINO, STATE OF CALIFORNIA CALLING FOR AN ELECTION TO PRESENT TO THE VOTERS OF THE COUNTY A PROPOSED ORDINANCE TITLED "COUNTY VITAL SERVICES TRANSACTIONS AND USE TAX" AND ORDERING CONSOLIDATION OF SAID ELECTION WITH THE CONSOLIDATED GENERAL ELECTION CALLED FOR NOVEMBER 2, 2010 WHEREAS, subparagraph (b) of section 2 of Article XIIIC of the California Constitution provides that no local government may impose, extend, or increase any general tax unless and until that tax is submitted to the electorate and approved by a majority vote; and WHEREAS, section 53721 of the Government Code provides that all taxes are either special taxes or general taxes, and that general taxes are taxes imposed for general governmental purposes; and WHEREAS, section 53723 of the Government C d Section 7285 of the Revenue and Tax Code authorize the County to impo ral sales tax after it is submitted to the electorate of the local government a ed by a majority vote of the voters voting in an election on the issue; and WHEREAS, section 53724 of the general tax shall be approiv local government by a twoand that the ordinance or r rate of tax to be levied, the shall be held on the issue; 0 ovides that any such ti the legislative body of the m rs of the legislative body shall include the type of tax and the date upon which an election WHEREAS, Ordin _0 entitled County Vital Services Transaction and Use tax which was a by this Board on August 4, 2010, by its express terms cannot take effect unless fntfil the voters of Mendocino County approve same by a majority vote; and WHEREAS, if approved by the Electorate the proceeds of the tax cannot be restricted to any particular purpose but rather must be spent for general governmental purposes; and WHEREAS, in compliance with the statutory provisions referenced above, the Board hereby proposes that the voters of Mendocino County now be provided the opportunity to approve or reject Ordinance No. ; and WHEREAS, the Board concludes that under the circumstances the most appropriate date to order the election is November 2, 2010. NOW, THEREFORE, BE IT RESOLVED that the Board of Supervisors does hereby declare and order the proposed Ordinance, attached hereto as exhibit "A", to be -1- submitted to a vote of the qualified electors of Mendocino County on the November 2, 2010 election in the following manner: 1. There shall be included on the ballot to be marked by all Mendocino County voters, in addition to any other matters required by law, a ballot measure in substantially the following form: Shall the ordinance titled "County Vital YES Services Transactions And Use Tax " be approved? NO A placed in the voting square after "YES" shall be counted in favor of the adoption of the proposed ordinance. A placed in the voting square after "NO" shall be counted against the adoption of the proposed ordinance. 2. The ballot to be used at the election s contained therein, such as may be required by law. 3. The County Clerk is hereby and furnish any and all official ballot: equipment, and paraphernal MA conduct this election. as to form and matter pd, and directed to provide matter, and all supplies, er to properly and lawfully 4. The County Ck Mr to take the necessary and appropriate action to provide the electi ff' olli laces, and voting precincts. 5. In accordan IAtions Code section 9160, the elections official shall transmit a copy of the me o the County Auditor and County Counsel. 6. In accordance with the provisions of the Elections Code of the State of California, the County Counsel is directed to prepare an impartial analysis of the measure. 7. The polls for this election shall be open during the hours required by law and this election, with respect to the foregoing ballot measure, shall be held and conducted as provided by law for the holding of County initiative elections. 8. Notice of the time and place of holding this election together with any other notices required by law shall be given by the County Clerk. 9. Arguments for and against the measure may be submitted in conformity with Elections Code section 9161, et seq. -2- BE IT FURTHER RESOLVED that the Board calls an election of the measure described herein and orders the election to be consolidated with the consolidated general election called for November 2, 2010. The foregoing Resolution introduced by Supervisor , seconded by Supervisor , and carried this , day of , 2010, by the following vote: AYES: NOES: ABSENT: WHEREUPON, the Chair declared said Resolution adopted and SO ORDERED. CARRE BROWN, hair Mendocino C oard of Supervisors ATTEST: CARMEL J. ANGELO Clerk of the Board Deputy APPROVED AS TO FOf JEANINE B. NADEL, Co I hereby c according to the prov r ment Code Section 2 I rv is document has PFARMEL J. ANGELO Clerk of the Board Deputy -3- CARMEL J. ANGELO Chief Executive Officer Clerk of the Board TAMMI WESELSKY Senior Deputy COUNTY OF MENDOCINO Clerk of the Board BOARD OF SUPERVISORS August 12, 2010 The Honorable Doug Hammerstrom, Mayor, Fort Bragg City Council The Honorable Lauren Sinnott, Mayor; Point Arena City Council The Honorable Benj Thomas, Mayor, Ukiah City Council The Honorable Bruce Burton, Mayor, Willits City Council Attachment # 'a CONTACT INFORMATION 501 Low Gap Road Room 1090 Ukiah, California 95482 TELEPHONE: (707) 463-4221 FAX: (707) 463-7237 Email: bos®co.mendocino.ca.us Web: www.co.mendocino.ca.us/bos RE: Tax Sharing for Revenue Raised Through the "County Vital Services Transactions (Sales) and Use Tax" Ballot Measure Dear Mayors Hammerstrom, Sinnott, Thomas, and Burton: At its regular meeting on August 10, 2010, the Board of Supervisors voted to expand the role of our existing ad hoc committee for tax sharing (Supervisors Smith and McCowen) to negotiate tax sharing agreements with each incorporated city within Mendocino County. The sole intent is to reach agreement to share with each city 50% of the proceeds raised within the city limits of each city should the above referenced ballot measure be approved. Given the limited parameters of the discussion, we are optimistic that an agreement may be forthcoming in relatively short order. To facilitate this process, we propose to meet in your city with either a committee or any appropriate staff as may be designated by your Council. The purpose of the meeting would be to identify and agree upon the elements that ought to be included in the proposed agreement. Assuming that agreement in principle is reached, our respective legal counsels can finalize a draft agreement for consideration by our respective bodies. County Counsel has stated that the agreement must make clear that any funds subject to sharing must be expended for a legitimate public purpose. Likewise, your City Attorney or staff may have concerns that will need to be addressed. Additionally, the Board has directed that the ad hoc meetings for this purpose shall be publicly noticed. Please advise at your earliest convenience your willingness to meet for this purpose and your designated representatives. Schedules permitting, one or the other of us are willing to attend any Council meeting at which this item may be discussed. We look forward to working with you on this issue. Please let us know if there is anything additional that we can do to facilitate these discussions. Sincerely, Mendocino County Tax Sharing Ad Hoc Committee AJO 1+ Supervisor Kendall Smith Supervisor John McCowen THE BOARD OF SUPERVISORS CARRE BROWN JOHN MCCOWEN JOHN PINCHES KENDALL SMITH J. DAVID COLFAX First District Second District Third District Fourth District Fifth District