HomeMy WebLinkAbout2011-01-19 PacketCITY OF UKIAH
CITY COUNCIL AGENDA
Regular Meeting
CIVIC CENTER COUNCIL CHAMBERS
300 Seminary Avenue
Ukiah,. CA 95482
January 19, 2011
6:00 p.m.
1. ROLL CALL
2. PLEDGE OF ALLEGIANCE
3. PROCLAMATIONS/INTRODUCTIONS/PRESENTATIONS
4. PETITIONS AND COMMUNICATIONS
5. APPROVAL OF MINUTES
a. Regular Minutes of January 5, 2011
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 December 2010
b. Report Of Expenditure Of $7002.61 To Redwood Coast Fuels For The Purchase Of Red
Diesel #2.
C. Report Of Expenditure Of $6,920.33 Plus Tax And Shipping To Pace Supply For The
Purchase Of Plumbing Supplies For The Ukiah Skate Park Restroom.
d. Adoption Of Resolution Approving City Of Ukiah Qualified Contractors List For 2011
e. Award Purchase Of Pole Mount And Pad Mount Transformers For The Total Amount Of
$30,198.12.
f. Approval Of Notice Of Completion For 2002 STIP Realignment Of Gobbi Street-Oak Manor
Drive-Babcock Lane Intersection, Specification No. 09-02
g. Approval Of Loan Servicing Policies And Procedures For Single Family Home Activities:
First Time Homebuyer (FTHB) And Owner-Occupied Rehabilitation (OOR)
h.. Update Report On Local Emergency Declaration Regarding Drought And Water Shortage
Status
i. Update Report Regarding Status Of Water Emergency Conditions Necessitating
Emergency Resolution To Expedite Construction Of Oak Manor Drive Water Well
j. Approval Of Change Order #1 With Balance Hydrologics For Completion Of The
Percolation Pond Study And Associated Budget Amendment In The Amount Of $17,445.69
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. Approve An Amendment To The Fiscal Year 2010/2011 Revenue And Expense Budgets In
The Amounts Of One Million Sixty-Six Thousand Five Hundred Fifty-One Dollars, And Five
Hundred Seventy-Six Thousand Six Hundred Fifty-Four Dollars Respectively
b. Consideration For Adoption Of Prequalification Process For Riverside Park Phase One
Trails And Re-Vegetation Project Funded By California Resources Agency River Parkways
Grant
C. Rescind Award Of Contract For Perkins Street And Orchard Avenue Intersection
Improvements, Specification No. 09-14 And Direct Staff To Return The Original Bonds To
North Bay Construction, Inc..
d. Discussion And Possible Action To Approve An Exclusive Negotiating Agreement With
Costco Wholesale Corporation And Authorize The City Manager/Executive Director To
Execute The Agreement.
11. NEW BUSINESS
a. Discussion And Possible Approval Of Streetlight Pole License For PG&E Smartmeter
Equipment
b. Award Of The Purchase Of Six Padmounted Vacuum Fault Interrupters (VFI) Switchgear
Needed For The Orchard Substation Project And The Electric System Reliability
Improvements From HD Supply Utilities In Portland, Oregon In The Amount Of
$141,081.00.
C. Adoption of Policy Resolution Establishing The Agenda Order For Council Meetings
d. Resolution Of The Ukiah City Council Regarding Needed Improvements To Coyote Dam
And Lake Mendocino
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 -Existing Litigation
Government Code Section 54956.9
Name of case: (Ukiah Valley Sanitation District v. City of Ukiah, SCUK1057183
b. Conference with Legal Counsel-Anticipated Litigation
Initiation of litigation pursuant to subdivision c of Government Code Section 54956.9:
(1 case)
C. Conference with Labor Negotiator 54957.6)
Agency Representative: Jane Chambers, City Manager
Employee Organizations: Police, Fire, Electric, Miscellaneous, Management, and
Department Head Units
d. 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, Executive Director
Negotiating Parties: Ukiah Redevelopment Agency and Northwest Atlantic (Costco)
Under Negotiation: Price & 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 14th day of January 2011.
JoAnne Currie, City Clerk
Item 5a
CITY OF UKIAH
CITY COUNCIL MINUTES
Regular Meeting
CIVIC CENTER COUNCIL CHAMBERS
300 Seminar Avenue
Ukiah, CA 95482
1/6/2011
6:00 pm
1. ROLL CALL
Ukiah City Council met at a Regular Meeting on January 5, 2011, the notice for which
being legally noticed on December 30, 2010. Mayor Rodin called the meeting to order at
6:01 pm. Roll was taken with the following Councilmembers present: Landis, Thomas,
Crane, Baldwin, and Mayor Rodin. Councilmembers absent: None. Staff present: City
Manager Chambers, Assistant City Manager Sangiacomo, City Attorney Rapport,
Director of Public Works/City Engineer Eriksen, Deputy Director of Public Works-
Engineering and Streets Seanor, Community Services Administrator Marsolan, and City
Clerk Currie.
2. PLEDGE OF ALLEGIANCE
3. PROCLAMATIONS/INTRODUCTIONS/PRESENTATIONS
a. Proclamation: National Mentoring Month
Councilmember Landis read and presented the proclamation to John Azzaro,
Commissioner, Juvenile Justice and Delinquency Prevention Commission. Mr.
Azzaro provided contact information for volunteering in the community call 707-
462-2596 or visit 1-800-volunteer.org.
4. PETITIONS AND COMMUNICATIONS
5. APPROVAL OF MINUTES
a. Regular Minutes of December 15, 2010
M/S Landis/Thomas to approve minutes of December 15, 2010, as amended.
Motion carried by all AYE voice vote.
6. RIGHT TO APPEAL DECISION
7. CONSENT CALENDAR
a. Update Report On Local Emergency Declaration Regarding Drought And Water
Shortage Status
b. Update Report Regarding Status Of Water Emergency Conditions Necessitating
Emergency Resolution To Expedite Construction Of Oak Manor Drive Water
Well
C. Report Of Acquisition Of Professional Consulting Services From EBA
Engineering For Preparation Of Mandated Reports For The Ukiah Landfill
Page 1 1/5/2011
M/S Baldwin/Landis to approve consent calendar items 7a-7c. Motion carried
by the following roll call votes: AYES: Landis, Thomas, Crane, Baldwin, and
Mayor Rodin. NOES: None. ABSENT: None. ABSTAIN: None.
Mayor Rodin requested City Council and City Manager Reports be moved before Audience
Comments on Non-agenda Items for tonight; City Council agreed. This order may provide an
improved opportunity for the audience to hear the reports. Updating the City Council Meeting
Procedures will be agendized.
12. COUNCIL REPORTS
Councilmember Baldwin reported meeting with the Ukiah Valley Sanitation District
Governance ad hoc committee and stated it was a positive meeting. The goal of the ad
hoc committees is to come up with recommendation for possible changes to the
participation agreement acceptable to both bodies.
Councilmember Thomas reported the stake park is open. Thomas said this park was a
huge community effort and is a great addition to our community. Some concerns have
arisen on the use of proper safety equipment by the park users. Councilmember Baldwin
hopes staff will report to City Council regarding the safety issues at the skate park.
Councilmember Landis reported the meeting with the Ukiah Valley Sanitation District
Governance ad hoc committee was well facilitated and productive. Landis reported she
has driven past the stake park and has noticed a lack of helmet use. Landis recalls at a
previous Council meeting, Mo Mulheren Wattenburger stated the skate park supporters
and users wanted to self police the park; Landis has placed a phone call to her. Landis
investigated how other jurisdictions handle a seniority-based mayor rotation and
requested the topic be agendized to clarify the process for the future.
Mayor Rodin attended the swearing in at the County.
13. CITY MANAGER/CITY CLERK REPORTS
City Manager Chambers reported city staff is aware of the safety issues at the skate
park and staff is working on it. Staff needs help from the community and users on this
issue. City Manager Chambers reported on updating employees on the City's financial
situation at a number of City facilities over the past month. Chambers provided an
update and concerns regarding the ideas Governor Brown has for the state's budget.
League of California Cities is meeting with the governor. Mayors are encouraged to call
and weigh in and Chambers will coordinate that with the Mayor.
8. AUDIENCE COMMENTS ON NON-AGENDA ITEMS
JR Rose spoke regarding skate park and said they are $30,000 away from completing
the project and encourages people to donate.
9. PUBLIC HEARINGS (6:15 PM)
10. UNFINISHED BUSINESS
a. Re-Adoption Of Ukiah Mobilehome Park Rent Stabilization Ordinance
Page 2 1/5/2011
City Attorney Rapport presented the item. Recommended Action(s): motion to
read ordinance by title only, city clerk to read ordinance by title only, and re-adopt
the Ukiah Mobilehome Park Rent Stabilization Ordinance and a new effective
date of February 4, 2011.
MIS Baldwin/Thomas to approve reading the ordinance by title only. Motion
carried by the following roll call votes: AYES: Councilmembers Landis, Thomas,
Baldwin, and Mayor Rodin. NOES: Councilmember Crane. ABSENT: None.
ABSTAIN: None.
City Clerk Currie read the ordinance title.
MIS Baldwin/Thomas to approve Re-Adoption of Ukiah Mobilehome Park Rent
Stabilization Ordinance as read by title only.
Public Comment opened 6:30 pm
Public speaking to the item: Mr. Ash, Lake Mendocino Mobile Home Estates.
Public Comment closed 6:35 pm
Motion carried by the following roll call votes: AYES: Councilmembers Landis,
Thomas, Baldwin, and Mayor Rodin. NOES: Councilmember Crane. ABSENT:
None. ABSTAIN: None.
b. Report On Award Of Bicycle Transportation Agreement (BTA) Funding For
The NWP Rail Trail Phase 1 Project, Authorize City Manager To Execute
The BTA Agreement, And Approve Budget Amendment
Director of Public Works/City Engineer Eriksen and Deputy Director of Public
Works-Engineering & Streets Division Seanor presented the item.
Recommended Action(s): Receive report on award of Bicycle Transportation
Agreement (BTA) funding for the NWP Rail Trail Phase 1 Project, authorize City
Manager to execute the BTA Agreement and approve budget amendment.
MIS Baldwin/Landis to approve report on award of Bicycle Transportation
Agreement (BTA) funding for the NWP Rail Trail Phase 1 Project, authorize City
Manager to execute the BTA agreement, and approve budget amendment.
Public Comment opened 6:52 pm
Public speaking to the item: Susan Knopf.
Public Comment closed 6:57
Motion carried by the following roll call votes: AYES: Councilmembers Landis,
Thomas, Crane, Baldwin, and Mayor Rodin. NOES: None. ABSENT: None.
ABSTAIN: None.
C. Status Report And Consideration Of Prequalification Process For
Riverside Park Development Project Funded By California Resources
Agency River Parkways Grant
Page 3 1/5/2011
Community Services Administrator Marsolan presented the item and stated this
item will be heard at the January 19, 2011 meeting. Recommended Action:
Receive Report.
City Council received the report.
d. Update In Connection With Administrative Civil Liability Complaint No. R1-
2010-0070 As Issued By The California Regional Water Quality Control
Board
Director of Public Works/City Engineer Eriksen presented the item.
Recommended Action: Receive Report.
City council received the report.
11. NEW BUSINESS
a. Discussion And Possible Appointment Of Planning Commission Members
City Clerk Currie presented the item. Recommended Action(s):
Councilmembers Baldwin, Thomas, and Landis individually may nominate a
Planning Commission member and City Council should vote on each nomination
Councilmember Thomas thanked Ann Molgaard for her years of service and
nominated Jason Brenner. Councilmember Landis second. Motion carried by the
following roll call votes: AYES: Councilmembers Landis, Thomas, Crane,
Baldwin, and Mayor Rodin. NOES: None. ABSENT: None. ABSTAIN: None.
Councilmember Baldwin nominated for reappointment Linda Sanders.
Councilmember Landis second. Motion carried by the following roll call votes:
AYES: Councilmembers Landis, Thomas, Crane, Baldwin, and Mayor Rodin.
NOES: None. ABSENT: None. ABSTAIN: None.
Councilmember Landis nominated for reappointment Linda Helland.
Councilmember Baldwin second. Motion carried by the following roll call votes:
AYES: Councilmembers Landis, Thomas, Crane, Baldwin, and Mayor Rodin.
NOES: None. ABSENT: None. ABSTAIN: None.
b. Approve The Purchase Of A Backhoe To Case Power & Equipment In The
Amount Of $102,748.90
Director of Public Works/City Engineer Eriksen presented the item.
Recommended Action(s): Approve the purchase of the 2011 Case Backhoe,
Model 580SN from Case Power and Equipment in the amount of $102,748.90
and approve the budget amendment.
Page 4 1/5/2011
Staff to identify if removing some options like AC would save money. Also identify
what a deluxe cab option includes.
MIS Thomas/Landis to approve Recommended Action including the appropriate
budget modification as outlined in ASR. Motion carried by the following roll call
votes: AYES: Councilmembers Landis, Thomas, Crane, Baldwin, and Mayor
Rodin. NOES: None. ABSENT: None. ABSTAIN: None.
C. Report to City Council of Proposal to Explore Comprehensive Efficiency
and Conservation Measures Program and Authorization of City Manager
to Sign Decision Schedule with Honeywell
City Manager Chambers presented the item. Recommended Action(s): Receive
report and authorize the City Manager to sign decision schedule with Honeywell.
Councilmember Thomas left the dais at 7:58 pm and returned 8:00 pm.
MIS Thomas/Landis to approve Recommended Action. Motion carried by the
following roll call votes: AYES: Councilmembers Landis, Thomas, Crane,
Baldwin, and Mayor Rodin. NOES: None. ABSENT: None. ABSTAIN: None.
Adjourned to closed session and convene as the Ukiah Redevelopment Agency at 8:12
pm.
14. CLOSED SESSION - Closed Session may be held at anv time durina the meetin
a. Conference with Legal Counsel -Existing Litigation
Government Code Section 54956.9
Name of case: (Ukiah Valley Sanitation District v. City of Ukiah, SCUK1057183
b. Conference with Legal Counsel - Anticipated Litigation Initiation of litigation
pursuant to subdivision c of Government Code Section 54956.9: (1 case)
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 180-080-57, 58, 59, 62, 63, 64, 65, 66, 67, and 180-110-08, 09,
10
Negotiator: Jane Chambers, Executive Director
Negotiating Parties: Ukiah Redevelopment Agency and Northwest Atlantic
(Costco)
Under Negotiation: Price & Terms
Reconvened in Open Session at 8:36 pm with no reportable action.
15. ADJOURNMENT
There being no further business, the meeting adjourned at 8:36 pm.
JoAnne M. Currie, City Clerk
Page 5 1/5/2011
ITEM NO.:
pir MEETING DATE:
City aJ-"Z1ki afi
AGENDA SUMMARY REPORT
7a
January 19, 2011
SUBJECT: REPORT OF' DISBURSEMENTS FOR THE MONTH OF DECEMBER 2010
Payments made during the month of December 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: 104644-104829, 104873-105047,105091-105124
Accounts Payable Manual check numbers: 105000, 105091, 105092
Payroll check numbers: 104593-104643, 104830-104872, 105048-105090
Payroll Manual check numbers: none
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
H Budgeted FY 10/11 F-1 New Appropriation ❑X Not Applicable
F
Amount Budgeted Source of Funds (title and Account Number Addit. Appropriation Requested
Recommended Action(s):
Approve the Report of Disbursements for the month of December 2010
Alternative Council Option(s): N/A
Continued on Paae 2
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: 4Zx.'c--. 6f~~
_
J n Chambers, City Manager
CITY OF UKIAH
REPORT OF DISBURSEMENTS
REGISTER OF PAYROLL AND DEMAND PAYMENTS
FOR THE MONTH OF DECEMBER 2010
Demand Payments approved:
Check No. 104644-104724, 104725-104829, 104873-104999, 105000-105047, 105091-105124
FUNDS:
100
General Fund
$209,554.43
600
Airport
$27,759.69
105
Measure S General Fund
$47,574.42
610
Sewer Service Fund
110
Special General Fund
$46,480.50
611
Sewer Construction Fund
$2,292.00
140
Park Development
$89,551.22
612
City/District Sewer
$115,299.84
141
Museum Grants
614
Sewer Capital Projects Fund
143
N.E.H,1. Museum Grant
615
City/District Sewer Replace
150
Civic Center Fund
620
Special Sewer Fund (Cap Imp)
200
Asset Seizure Fund
640
San Dist Revolving Fund
201
Asset Seizure (Drug/Alcohol)
641
Sanitation District Special
$12,799.66
203
H&S Education 11489 (13)(2)(A1)
$213.70
650
Spec San Dist Fund (Camp Imp)
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
$46,752.07
206
Community Oriented Policing
661
Landfill Corrective Fund
207
Local Law Enforce. Blk Grant
664
Disposal Closure Reserve
220
Parking Dist. #1 Oper & Maint
$552.50
670
U.S.W. Bill & Collect
$23,944.42
230
Parking Dist. #1 Revenue Fund
678
Public Safety Dispatch
$925.98
250
Special Revenue Fund
$321,911.10
679
MESA (Mendocino Emergency SrvAuth)
260
Downtown Business Improvement
695
Golf
$24,645.04
270
Signalizaton Fund
696
Warehouse/Stores
$1,732.18
290
Bridge Fund
$110.95
697
Billing Enterprise Fund
$11,760.77
300
2106 Gas Tax Fund
698
Fixed Asset Fund
$303,349.87
301
2107 Gas Tax Fund
699
Special Projects Reserve
$2,071.80
303
2105 Gas Tax Fund
800
Electric
$753,362.21
310
Special Aviation Fund
805
Street Lighting Fund
$12,236.50
315
Airport Capital Improvement
806
Public Benefits Charges
$26,707.97
330
Revenue Sharing Fund
$184,634.19
820
Water
$53,206.94
332
Federal Emerg. Shelter Grant
840
Special Water Fund (Cap Imp)
$267,994.00
333
Comm. Development Block Grant
900
Special Deposit Trust
$6,288.50
334
EDBG 94-333 Revolving Loan
910
Worker's Comp. Fund
$7,066.59
335
Community Dev, Comm. Fund
920
Liability Fund
$177,143.00
336
08-HOME-4688
$186,272.59
940
Payroll Posting Fund
$189,888.23
340
SB325 Reimbursement Fund
950
General Service (Accts Recv)
$1,119.36
341
S.T.P.
$11,352.50
960
Community Redev. Agency
$2,329.21
342
Trans-Traffic Congest Relief
962
Redevelopment Housing Fund
$155.93
345
Off-System Roads Fund
964
RDA Capital Pass=Through
410
Conference Center Fund
$6,791.28
965
Redevelopment Cap Imprv. Fund
$72,427.66
550
Lake Mendocino Bond-Int/Red
966
Redevelopment Debt Svc.
555
Lake Mendocino Bond-Reserve
975
Russian River Watershed Assoc
$21,151.95
575
Garage
$5,641.66
976
Mixing Zone Policy JPA
PAYROLL CHECK NUMBERS 104593-104643
DIRECT DEPOSIT NUMBERS 49177-49371
PAYROLL PERIOD 11/14/10-11/27/10
PAYROLL CHECK NUMBERS: 104830-104872
DIRECT DEPOSIT NUMBERS 49372-49554
PAYROLL PERIOD 11/28/10-12/11/10
PAYROLL CHECK NUMBERS: 105048-105090
DIRECT DEPOSIT NUMBERS 49555-49737
PAYROLL PERIOD: 12/12/10-12/25/10
TOTAL DEMAND PAYMENTS- A/P CHECKS $3,277,552.41
TOTAL DEMAND PAYMENTS-WIRE TRANSFERS' $93.00
TOTAL PAYROLL CHECKS & DIRECT DEPOSIT $1,077,141.21
TOTAL PAYROLL EFT's (TAXES, PERS, VENDORS) $785,521.39
TOTALPAYMENTS
VOID CHECK NUMBERS: none
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.
$5,140,308.01
CERTIFICATION OF DIRECTOR OF FINANCE
I have audited this Register and approve for accuracy
and available funds.
City Manager Director of Finance
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ITEM NO.: 7b
MEETING DATE: January 19, 201
City cy-l"Z-1kiah
AGENDA SUMMARY REPORT
SUBJECT: REPORT OF EXPENDITURE OF $7002.61 TO REDWOOD COAST FUELS FOR THE
PURCHASE OF RED DIESEL #2.
Pursuant to the requirements of Section 1522 of the Municipal Code, this report is being submitted to the
City Council to report the purchase of 2363 gallons of red diesel #2.
Bids were issued on December 15, 2010 for the purchase of 2363 gallons of red diesel #2 (off-road) to be
delivered to the City of Ukiah's Waste Water Treatment Plant. Two bids were received. Below is a
summary:
Vendor Total Bid
Redwood Coast Fuels $7,002.61
Eel River Fuels $7,153.39
Redwood Coast Fuels was awarded the bid at the total price of $7,002.61.
The Waste Water Treatment Plant uses the red diesel #2 primarily for their emergency generator, as well as
for their diesel powered equipment.
Fiscal Impact:
Budgeted FY 10/11 1-1 New Appropriation Not Applicable Budget Amendment Required
❑X
F-1 F
Amount Budgeted
Source of Funds title and #
Account Number
Addit. Appropriation Requested
$7,200.00
Lubricants
612.3580.450.000
$
Continued on Page 2
Recommended Action(s): Receive report.
Alternative Council Option(s): N/A
Citizens advised:
N/A
Requested by:
Tim Eriksen, Director of Public Works
Prepared by:
Mary Horger, Purchasing Supervisor
Coordinated with:
Jane Chambers, City Manager
Attachments:
N/A
Approved:
J Chambers, ity Manager
City aJ` 7lkia
ITEM NO.:
MEETING DATE.
AGENDA SUMMARY REPORT
7c
January 19, 2011
SUBJECT: REPORT OF EXPENDITURE OF $6,920.33 PLUS TAX AND SHIPPING TO PACE
SUPPLY FOR THE PURCHASE OF PLUMBING SUPPLIES FOR THE UKIAH SKATE
PARK RESTROOM.
Pursuant to the requirements of Section 1522 of the Municipal Code, this report is being submitted to the
City Council to report the purchase plumbing supplies for the Ukiah Skate Park Restroom.
Bids were issued on December 16, 2010 for miscellaneous plumbing items for the Ukiah Skate Park
Restroom. Supplies consisted of toilets, sinks, faucets, drains, valves, partitions and miscellaneous
hardware for the men's and women's restrooms, sinks, faucets and drains for the snack bar and
maintenance room, as well as a drinking faucet and associated hardware.
Three bids were received. Below is a summary:
Vendor Total Bid
Pace Supply $6,920.33
Thrifty Supply $7,329.25
Friedman Brothers $9,325.00
Pace Supply was awarded the bid at the total price of $6,920.33, plus tax and shipping.
Fiscal Impact:
Budgeted FY 10/11 1-1 New Appropriation Not Applicable Budget Amendment Required
❑X
F-1 F
Amount Budgeted
Source of Funds (title and
Account Number
Addit. Appropriation Requested
$750,000.00
Skate Park Development
140.6050.930.005
$
Continued on Paqe 2
Recommended Action(s): Receive report.
Alternative Council Option(s): N/A
Citizens advised: N/A
Requested by: Sage Sangiacomo, Assistant City Manager
Prepared by: Mary Horger, Purchasing Supervisor
Coordinated with: Jane Chambers, City Manager
Attachments: N/A
Approved:
Ja Chambers, City Manager
ITEM NO.: 7d
MEETING DATE: January 19, 2011
AGENDA SUMMARY REPORT
SUBJECT: ADOPTION OF RESOLUTION APPROVING CITY OF UKIAH QUALIFIED
CONTRACTORS' LIST FOR 2011
As required by the Informal Bidding Procedure of the City of Ukiah, Ukiah City Code §1541-1542, the City
Clerk's office prepared and mailed a written notice to construction trade organizations/journals inviting all
licensed contractors to submit information regarding their firm to the city for inclusion on the city's list of
qualified contractors for the 2011 calendar year. This notice was also posted on the bulletin board at city hall
and on the city's web site. A contractor may be included throughout the year by either submitting a written
notice to the city clerk or by bidding on a City of Ukiah project. All contracting firms are verified through the
California State Licensing Board for license validity.
All contractors who submitted their company information and construction classification designation
received as of January 11, 2011, together with those who bid on projects in 2010, have been included on
the current updated list, and attached to the resolution as "Exhibit A". The resolution ensures that staff has a
comprehensive list of qualified contractors when soliciting bids for the City of Ukiah.
Fiscal Impact:
Budget Amendment Required
1-1 Budgeted FY 08/09 F-1 New Appropriation ❑X Not Applicable
F
Recommended Action(s): Adopt Resolution Approving Qualified Contractors' List for 2011 Calendar
Year.
Alternative Council Option(s): If Council wishes to add any other names to the list, he or she should
make a request to agendize for the February 2, 2011, regular meeting.
Citizens advised: Construction trade organizations/journals
Requested by: N/A
Prepared by: JoAnne M. Currie, City Clerk
Coordinated with:
Attachments: 1. Notice to Construction Trade Organizations and Contractors
2. Resolution Approving Qualified Contractors' List for 2011 Calendar Year
3. 2011 Qualified Contractors List
Approved: Qxc
e Chambers, City Manager
ATTACHMENT
PUBLIC NOTICE
DATE: December 1, 2010
FOR RELEASE: Immediately
SUBJECT: Application for Qualified Contractor's List
CONTACT: JoAnne M. Currie, City Clerk
(707) 463-6217
All Licensed Contractors who wish to be included on the City of Ukiah's list of
qualified. bidders for the year 2011, should submit the name and address to
which Notice of Bids or Proposals should be mailed, a phone number at which
the contractor may be reached, the type of work in which the contractor is
interested and for which the contractor is currently licensed (e.g. earthwork,
pipelines, electrical, painting, general building, etc.) together with the class of
contractor's license or licenses held, and the contractor's license number(s).
A Qualified Contractor's List application form and insurance requirements may be
obtained from the city clerk or downloaded from the City of Ukiah's website:
www.cityofukiah.com.
Completed forms should be submitted to:
City of Ukiah
Att: JoAnne M. Currie, City Clerk
300 Seminary Avenue, Ukiah, CA 95482
OR:
Fax to: (707) 463-6204
OR
Email: jcurrie@cityofukiah.com
Attachment 2
RESOLUTION NO. 2011-
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF UKIAH
APPROVING QUALIFIED CONTRACTORS LIST
FOR 2011 CALENDAR YEAR
WHEREAS, under Ukiah City Code (UCC) sections 1541-1542, the City Clerk must request
licensed contractors who are qualified to perform public work under contract with the City of Ukiah to
submit their names, addresses, phone numbers, type of work in which they are interested, and the
contractor's classification and license number; and
WHEREAS, the City Council is required to adopt a list of qualified contractors, identified according
to categories of work; and
WHEREAS, the City Clerk has published the notice as required in UCC Section 1541 and compiled
a list of qualified contractors based on information submitted in response to said notice and included all
contractors who have submitted valid bids to the City during the preceding calendar year; and
WHEREAS, the City Council finds and determines that the list as compiled complies with the
requirements of the City Code and Public Contracts Code Section 22034(a) and shall constitute the City of
Ukiah Contractors' List for use in providing notice under the informal bidding procedure authorized in UCC
Section 1543.
NOW, THEREFORE, BE IT RESOLVED, that the list attached to this resolution as Exhibit A and
incorporated herein by reference is an alphabetical list of the adopted Contractors' List which is sorted by
class for the City of Ukiah for the calendar year 2011.
PASSED AND ADOPTED this 19th day of January, 2011, by the following roll call vote:
AYES:
NOES:
ABSTAIN:
ABSENT:
Mari Rodin, Mayor
ATTEST:
JoAnne M. Currie, City Clerk
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ITEM NO.: 7e
MEETING DATE: January 19, 2011
City o,J` z-1kiaF
AGENDA SUMMARY REPORT
SUBJECT: AWARD PURCHASE OF POLE MOUNT AND PAD MOUNT TRANSFORMERS
FOR THE TOTAL AMOUNT OF $30,198.12.
The City's Electric Department back-up stock of transformers needs to be replenished. A Request for Quotation was
sent out for the purchase of six (6) transformers as outlined in Attachment #1, Recommended Qualified Bidders,
Electrical Transformers, Bid Opening December 8, 2010.
The requests were sent to fourteen (14) companies. Four quotes were received. To compare each bid, the total bid
price of each transformer is compared against its load loss and no load loss, which results in the total evaluated 20
year cost. The result of that comparison is how the bid selection is determined. Attachment #1 details the bid results
for each transformer.
Staff's recommendation that the purchase of the transformers be awarded to the following vendors in the listed
amounts, which represents the combined lowest bid of each transformer:
General Pacific Purchase Order amount: $ 30,198.12
Since this purchase is for inventory, it will be charged to the inventory account 800.131.002, and then expensed to
800.3728.690.000 for pole mount and 800.3729.690.000 for pad mount when used. Inventory is maintained to ensure
availability of critical equipment and reliability of the electrical system.
Fiscal Impact:
Budget Amendment Required
F-1 Budgeted FY 10/11 F-1 New Appropriation ~ Not Applicable
I
Funds are available for the purchase to restock inventory and will be expensed from the appropriate Materials and
Inventory Accounts (800.3728.690.000 & 800.3729.690.000) at the time of use.
Recommended Action(s): Award the purchase of transformers in the amount of $30,198.12.
Alternative Council Option(s): Reject all bids and provide direction to Staff.
Citizens advised: N/A
Requested by: Colin Murphey, Electric Supervisor, and Mel Grandi, Electric Utility Director
Prepared by: Mary Williamson, Buyer
Coordinated with: Mary Horger, Purchasing Supervisor
Attachments: Bid Tabulation
Approved:
J Chambers, City Manager
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ATTACHMENT,,,_,_~
ITEM NO.:
MEETING DATE:
wkjah
AGENDA SUMMARY REPORT
January 19, 2011
SUBJECT: APPROVAL OF NOTICE OF COMPLETION FOR 2002 STIP REALIGNMENT
OF GOBBI STREET - OAK MANOR DRIVE - BABCOCK LANE INTERSECTION,
SPECIFICATION NO. 09-02
Background: This project was funded in the FY 2009-2010 budget adopted by the City Council.
Discussion: The City Council awarded the contract for this project on September 16, 2009 to Granite
Construction Company of Ukiah, California (contractor) in the amount of $878,813. The work of the contract
was completed by the contractor in substantial conformance with the approved plans and specifications on
December 13, 2010. The final contract cost, based on actual quantities constructed and the approved
change orders, is $954,191.06. This final contract amount includes a change order in the amount of
$38,809.42 for electrical conduits installed by the contractor for the City Electric Department. The Electric
Department will reimburse the Department of Public Works budget account for this change order. Final
payment of the retention will be made to the contractor after 35 days from the date the Notice of Completion
is filed with the County Recorder.
Fiscal Impact:
Budget Amendment Required
❑ Budgeted FY 10/11 F-1 New Appropriation I-X Not Applicable
F
Amount Budgeted Source of Funds (title and Account Number Addtl. Appropriation Requested
Recommended Action(s): 1. Accept the work as complete; 2. Direct the City Clerk to file the Notice of
Completion with the County Recorder for 2002 STIP Realignment of Gobbi Street - Oak Manor Drive -
Babcock Lane Intersection, Specification No. 09-02.
Alternative Council Option(s): N/A
Citizens advised: Granite Construction Company Z
Requested by: Tim Eriksen, Director of Public Works / City Engineer A
Prepared by: Rick Seanor, Deputy Director of Public Works - Engineering & Streets ,R
Coordinated with: Jane Chambers, City Manager
Attachments: 1. Notice of Completion
Approved:
Chambers, City Manager
Attachment # I
Please return to:
CITY OF UKIAH
300 Seminary Avenue
Ukiah, California 95482-5400
(707) 463-6200
No fee pursuant to Government Code 27383
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 2002 STIP Realignment of Gobbi Street - Oak Manor Drive - Babcock Lane
Intersection, Specification No. 09-02 of all said owners is that of fee simple.
3. That on the 13th day of December 2010, the Contract work for this project was actually completed.
4. That the name and address of the Contractor is Granite Construction Company, 1324 South State Street,
Ukiah, CA 95482.
5. That the real property herein referred to is situated in the County of Mendocino, State of California, and is
described as follows: City-owned property identified as Gobbi Street, Oak Manor Drive, and Babcock Lane
within the City 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
Date
State of California
By:
Date
JoAnne Currie, City Clerk
County of Mendocino
ITEM NO.: 7g
MEETING DATE: January 19, 2011
City csJ "ZJICuF
AGENDA SUMMARY REPORT
SUBJECT: APPROVAL OF LOAN SERVICING POLICIES AND PROCEDURES FOR SINGLE
FAMILY HOME ACTIVITIES: FIRST TIME HOMEBUYER (FTHB) AND OWNER-
OCCUPIED REHABILITATION (OOR)
BACKGROUND: The Community Development Commission of Mendocino County (the "CDC")
administers the Home Investment Partnerships Program (HOME) for the City of Ukiah. HOME provides
funds to eligible cities and counties for housing rehabilitation, new construction, and acquisition and
rehabilitation, for both single-family and multifamily projects. All activities must benefit lower-income
renters or owners.
The City received an award of $800,000 in HOME funds for a Downpayment Assistance Program (DAP)
and Owner-Occupied Housing Rehabilitation Loan Program (OOR).
The DAP provides fixed, below-market interest rate loans to qualified first-time homebuyers for
assistance in purchasing homes. All payments on principal and interest are deferred for the life of the
loan. Homes purchased must be located in the incorporated area of the City of Ukiah.
The OOR also provides fixed, below-market interest rate loans with deferred payments on principal and
interest. OOR loans are utilized by homeowners looking to make general improvements to their
property to correct identified health and safety deficiencies. OOR also promotes the use of green
building practices and energy efficiency improvements, and, where appropriate to the specific
rehabilitation project, home repairs will include those that meet green standards.
DISCUSSIONS: Per the requirements of HOME and as a recipient of grant funds for the FTHB and
OOR Program, the City of Ukiah is required to maintain a Loan Servicing Plan. The Community
Development Commission of Mendocino County has developed the required policies and procedures for
servicing the loans made in conjunction with the grant program. The Plan is included as Attachment #1
for review and consideration.
Continued on r)aae 2
Recommended Action(s): Approve the Loan Servicing Policies and Procedures for Single Family
HOME Activities: First Time Homebuyer (FTHB) and Owner-Occupied Rehabilitation (OOR).
Alternative Council Option(s): Remand to staff with direction
Citizens advised: N/A
Requested by: HOME
Prepared by: Sage Sangiacomo, Assistant City Manager and Craig Schlatter, Community
Development Commission
Coordinated with: Jane Chambers, City Manager
Attachments: 1. Loan Servicinq Policies and Procedures for Single Familv HOME Activities
Approved:
hambers, City Manager
Ja
I~A
Attachment #1
CITY OF UKIAH
LOAN SERVICING POLICIES AND PROCEDURES
SINGLE FAMILY HOME ACTIVITIES: FIRST TIME HOMEBUYER (FTHB) AND
OWNER-OCCUPIED REHABILITATION (OOR)
The City of Ukiah has adopted these policies and procedures in order to preserve its
financial interest in properties, who's "Borrowers" have been assisted with public funds.
The Community Development Commission of Mendocino County (CDC), acting on
behalf of the City of Ukiah as the loan servicing entity and administrator through its
existing Memorandum of Understanding, will to the greatest extent possible follow these
policies and procedures but each loan will be evaluated and handled on a case-by-case
basis. The City of Ukiah and CDC will collectively be referred to hereafter as "Lender."
The Lender has formulated this document to comply with state and federal regulations
regarding the use of these public funds and any property restrictions, which are
associated with them.
The policies and procedures are broken down into the follow areas: 1) making required
monthly payments or voluntary payments on a loan's principal and interest; 2) required
payment of property taxes and insurance; 3) required Request for Notice of Default on
all second mortgages; 4) loans with annual occupancy restrictions and certifications 5)
required noticing and limitations on any changes in title or use of property; 6) required
noticing and process for requesting a subordination during a refinance; 7) processing of
foreclosure in case of default on the loan.
1. Loan Repayments:
The Lender will collect monthly payments from those borrowers who are obligated to do
so under Notes, which are amortized promissory notes. Late fees will be charged for
payments received after the assigned monthly date.
For Notes, which are deferred payment loans; the Lender may accept voluntary
payments on the loan. Loan payments will be credited to the interest first and then to
principal. The borrower may repay the loan balance at any time with no penalty.
Affordability Period (FTHB only)
A recorded document will contain provisions restricting resale. For a 5-15-year period
for the City, these conditions will apply:
A. Any purchaser of the property must be a qualifying low-income household
that will reside in the property as their primary residence.
B. The sale price must permit the low-income purchaser to maintain affordability.
C. There must be a fair return on investment to the seller.
Attachment #1
The minimum periods of affordability are specified in the following table, and shall
comply with the other requirements of 24 CFR Sections 92.252, 92.254, 92.255 and
92.258.
Amount of HOME
Assistance
Activity
Minimum Period of
Affordability in Years
Less than $15,000
FTHB
5
$15,000 - $40,000
FTH B
10
More than $40,000
FTHB
15
No additional HOME assistance may be provided during the period starting one year
following the filing of the Project Completion Report through end of the affordability
period.
When these terms are met and the new borrower is an eligible heir the FTHB loan may
be assumable. The new purchaser must execute an assumption agreement confirming
agreement with the terms of the FTHB loan.
If these terms are not met, the FTHB loan is due and payable and the FTHB funds will
be recaptured to the local FTHB account(s) (Recaptured Funds). The homeowner may
recover the initial investment. However, assumptions are not allowed if not eligible
under the funding source of the loan(s).
Calculating Loan Payoffs
The process for calculating loan payoffs will be determined by the terms outlined in
each note.
If the affordability period has been met and the borrower repays the loan in full (principal
and interest), the loan payoff funds will be receipted by Lender as Program Income. If
the affordability period has not been met and the borrower repays the loan in full, the
funds will be receipted by Lender as Recaptured Funds.
Proceeds from sales (Program Income or Recaptured Funds) will be recycled into
eligible activities with the same regulations and procedures of the original funding
source.
Process for Reconveyance
When a borrower has satisfied the terms of the Note (i.e. loan paid in full) and paid
applicable processing fees, the Lender will reconvey its interest of the property to
borrower. A Deed of Reconveyance will be signed and recorded by Lender at County of
Mendocino Recorder's Office. Then Lender will mail a copy of the recorded Deed of
Reconveyance to borrower.
2
Attachment #1
Process for Crediting the Note (OOR only)
For Owner-Occupied Rehabilitation projects where the actual project cost was less than
the original Note amount, Lender will record a modification to the original Deed of Trust
discounting the principal amount to the actual project cost. Borrower and Lender will
sign Modified Deed of Trust and Lender will record at Recorder's office. A copy of the
modified Deed will be sent to by Lender to Borrower.
2. Payment of Property Taxes and Insurance:
As part of keeping the loan from going into default, borrower must maintain property
insurance coverage naming the Lender as loss payee in first position or additional
insured if the loan is a junior lien. If borrower fails to maintain the necessary insurance,
the Lender may take out forced place insurance to cover the property while the
Borrower puts a new insurance policy in place. All costs for installing the necessary
insurance will be added to the loan balance at time of installation of Borrower's new
insurance.
When a property is located in a 100 year flood plain, the Borrower will be required to
carry the necessary flood insurance. A certificate of insurance for flood and for
standard property insurance will be required at close of escrow. The Lender may verify
the insurance on an annual basis.
Property taxes must be kept current during the term of the loan. If the Borrower fails to
maintain payment of property taxes then the Lender may pay the taxes current and add
the balance of the tax payment plus any penalties to the balance of the loan. Wherever
possible, the Lender encourages Borrower to have impound accounts set up with their
first mortgagee wherein they pay their taxes and insurance as part of their monthly
mortgage payment.
3. Required Request for Notice of Default:
When the Borrower's loan is in second position behind an existing first mortgage, it is
the Lender's policy to prepare and record a "Request for Notice of Default" for each
senior lien in front of Lender's loan. This document requires any senior lien holder listed
in the notice to notify the lender of initiation of a foreclosure action. The Lender will then
have time to contact the Borrower and assist them in.bringing the first loan current. The
Lender can also monitor the foreclosure process and go through the necessary analysis
to determine if the loan can be made whole or preserved. When the Lender is in a third
position and receives notification of foreclosure from only one senior lien holder, it is in
their best interest to contact any other senior lien holders regarding the status of their
loans.
Attachment #1
4. Annual Occupancy Restrictions and Certifications:
On some owner occupant loans the Lender may require that Borrowers submit utility
bills and/or other documentation annually to prove occupancy during the term of the
loan. Other loans may have income and housing cost evaluations, which require a
household to document that they are not able to make repayments, typically every five
years. These loan terms are incorporated in the original note and deed of trust.
5. Required Noticing and Restrictions on Any Changes of Title or Occupancy:
In all cases where there is a change in title or occupancy or use, the Borrower must
notify the Lender in writing of any change. Lender and borrower will work together to
ensure the property is kept in compliance with the original Program terms and
conditions such that it remains available as an affordable home for low income families.
These types of changes are typical when Borrowers do estate planning (adding a
relative to title) or if a Borrower dies and property is transferred to heirs or when the
property is sold or transferred as part of a business transaction. In some cases the
Borrower may move and turn the property into a rental unit without notifying the Lender.
Changes in title or occupancy must be in keeping with the objective of benefit to low-
income households (below 80 percent of AM I).
Change from owner-occupant to owner-occupant occurs at a sale. When a new owner-
occupant is not low-income, the loan is not assumable and the loan balance is
immediately due and payable. If the new owner-occupant qualifies as low-income, the
purchaser may either pay the loan in full or assume all loan repayment obligations of the
original owner-occupant, subject to the approval of the Lender's Loan Committee
(depends on the HCD program).
If a transfer of the property occurs through inheritance, the heir (as owner-occupant)
may be provided the opportunity to assume the loan at an interest rate based on
household size and household income, provided the heir is in the TIG. If the heir
intends to occupy the property and is not low-income, the balance of the loan is due and
payable. If the heir intends to act as an owner-investor, the balance of the loan may be
converted to an owner/investor interest rate and loan term and a rent limitation
agreement is signed and recorded on title. All such changes are subject to the review
and approval of the Lender's Loan Committee.
Change from owner-occupant to owner-investor occurs when an owner-occupant
decides to move out and rent the assisted property, or if the property is sold to an
investor. If the owner converts any assisted unit from owner occupied to rental, the loan
is due in full.
4
Attachment #1
Conversion to use other than residential use is not allowable where the full use of the
property is changed from residential to commercial or other. In some cases, Borrowers
may request that the Lender allow for a partial conversion where some of the residence
is used for a business but the household still resides in the property. Partial
conversions can be allowed if it is reviewed and approved by any and all agencies
required by local statute. If the use of the property is converted to a fully non-residential
use, the loan balance is due and payable.
6. Requests for Subordinations:
When a Borrower wishes to refinance the property, they must request a subordination
request to the Lender. The Lender will only subordinate their loan when there is no
"cash out" as part of the refinance. Cash out means there are no additional charges on
the transaction above loan and escrow closing fees. There can be no third party debt
pay offs or additional encumbrance on the property above traditional refinance
transaction costs. Furthermore, the refinance should lower the housing cost of the
household with a lower interest rate and the total indebtedness on the property should
not exceed the current market value.
Upon receiving the proper documentation from the refinance lender, the request will be
considered by the loan committee for review and approval. Upon approval, the escrow
company will provide the proper subordination document for execution and recordation
by the Lender.
7. Process for Loan Foreclosure:
Upon any condition of loan default: 1) non payment; 2) lack of insurance or property tax
payment; 3) violation of rent limitation agreement; 4) change in title or use without
approval; 5) default on senior loans, the Lender will send out a letter to the Borrower
notifying them of the default situation. If the default situation continues then the Lender
may start a formal process of foreclosure.
When a senior lien holder starts a foreclosure process and the Lender is notified via a
Request for Notice of Default, the Lender, who is the junior lien holder, may cancel the
foreclosure proceedings by "reinstating" the senior lien holder. The reinstatement
amount or payoff amount must be obtained by contacting the senior lien holder. This
amount will include all delinquent payments, late charges and fees to date. Lender
must confer with Borrower to determine if, upon paying the senior lien holder current,
the Borrower can provide future payments. If this is the case then the Lender may cure
the foreclosure and add the costs to the balance of the loan with a Notice of Additional
Advance on the existing note.
If the Lender determines, based on information on the reinstatement amount and status
of borrower, that bringing the loan current will not preserve the loan, then staff must
5
Attachment #1
determine if it is cost effective to protect their position by paying off the senior lien
holder in total and restructure the debt such that the unit is made affordable to the
Borrower. If the Lender does not have sufficient funds to pay the senior lien holder in
full, then they may choose to cure the senior lien holder and foreclose on the property
themselves. As long as there is sufficient value in the property, the Lender can afford to
pay for the foreclosure process and pay off the senior lien holder and retain some or all
of their investment.
If the Lender decides to reinstate, the senior lien holder will accept the amount to
reinstate the loan up until five (5) days prior to the set "foreclosure sale date." This
"foreclosure sale date" usually occurs about four (4) to six (6) months from the date of
recording of the "Notice of Default." If the Lender fails to reinstate the senior lien holder
before five (5) days prior to the foreclosure sale date, the senior lien holder would then
require a full pay off of the balance, plus costs, to cancel foreclosure. If the Lender
determines the reinstatement and maintenance of the property not to be cost effective
and allows the senior lien holder to complete foreclosure, the Lender's lien may be
eliminated due to insufficient sales proceeds.
Lender as Senior Lien holder
When the Lender is first position as a senior lien holder, active collection efforts will
begin on any loan that is 31 or more days in arrears. Attempts will be made to assist
the homeowner in bringing and keeping the loan current. These attempts will be
conveyed in an increasingly urgent manner until loan payments have reached 90 days
in arrears, at which time the Lender may consider foreclosure. Lender's staff will
consider the following factors before initiating foreclosure:
1) Can the loan be cured and can the rates and terms be adjusted to allow for
affordable payments such that foreclosure is not necessary?
2) Can the Borrower refinance with a private lender and pay off the Lender?
3) Can the Borrower sell the property and pay off the Lender?
4) Does the balance warrant foreclosure? (If the balance is under $5,000, the
expense to foreclose may not be worth pursuing.)
5) Will the sales price of home "as is" cover the principal balance owing,
necessary advances, (maintain fire insurance, maintain or bring current
delinquent property taxes, monthly yard maintenance, periodic inspections of
property to prevent vandalism, etc.) foreclosure, and marketing costs?
If the balance is substantial and all of the above factors have been considered, the
Lender may opt to initiate foreclosure. The Borrower must receive, by certified mail, a
thirty-day notification of foreclosure initiation. This notification must include the exact
6
Attachment #1
amount of funds to be remitted to the Lender to prevent foreclosure (such as, funds to
bring a delinquent BMIR current or pay off a DPL).
At the end of thirty days, the Lender should contact a reputable foreclosure service or
local title company to prepare and record foreclosure documents and make all
necessary notifications to the owner and junior lien holders. The service will advise the
Lender of all required documentation to initiate foreclosure (Note and Deed of Trust
usually) and funds required from the owner to cancel foreclosure proceedings. The
service will keep the Lender informed of the progress of the foreclosure proceedings.
When the process is completed, and the property has "reverted to the beneficiary" at
the foreclosure sale, the Lender could sell the home themselves under a homebuyer
program or use it for an affordable rental property managed by a local housing authority
or use it for transitional housing facility or other eligible use. The Lender could contract
with a local real estate broker to list and sell the home and use those funds for program
income eligible uses.
7
city oJ" zUk{afi.
ITEM NO.: 7h
MEETING DATE: January 19, 2011
AGENDA SUMMARY REPORT
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: Lauren McPhaul, Public Works Water & Sewer Project Coordinator
Coordinated with: Tim Eriksen, Director of Public Works and City Engineer
Attachments: Attachment 1 - Resolution
Attachment 2 - Letter to SCWA
Approved: v►~_
46V& Chambers, City Manager
Subject: Drought and Water Shortage Status
Meeting Date: January 5th, 2011
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 69,894
acre-feet. 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 completed.
Water Treatment Plant personnel are in the final stages of testing the well motor and other components before
putting the well in service.
Regional Issues
The administrative draft of The Water Supply Assessment for the Ukiah Valley Area Plan (UVAP) has been
released for comment. This plan was originally drafted a few months ago. The original was flawed with
inaccurate data. County staff has done an admiral job at rewriting this document. However, with the recent
changes in county staff at the water agency, the status of this study is uncertain.
ATTACHMENT,,,_, _
RESOLUTION NO. 2009-17
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
UJUAH DECLARING A LOCAL EMERGENCY
PURSUANT TO THE EMERGENCY SERVICES ACT AND
A STAGE I WATER EMERGENCY' UNDER SECTION 3602
OF THE UK(AH 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 run-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
Schwamenegger 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 ("SWRCB") has
approved an Urgency Change Petition filed by the Sonoma County Water Agency ("SCWA") to
reduce in-stream 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 1-June 30,2009; and
r
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, 2009, 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 etseg.) 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 providemutual 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 Ukiah 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 maybe 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 Ill water emergencies impose various mandatory conservation measures
on City residents, including a prohibition on "nonessential water use" in a Stage A water
emergency and a limit onthe daily use of water by different classes of water user in a Stage III
emergency; and
20. The City can declare a Stage II or Stage rl 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;
NOW4 THEREFORE, BE IT RESOLVED that the City Council of the City of Uldah hereby:
1. Declares a local emergency due to drought Under the Emergency Service Act.
2. Declares a Stage I Water Storage Emergency under Ukiah 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 C'Conservation Period"), and to report back to the City Council at each City
Council meeting Held 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 U
or M 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'VvR 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 mucks 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 15, 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
ATTEST,
L' d ro City Clerk
3
April 28, 2009 L`'
Lynn Fiorey
Sonoma County Water Agency
Principal Program Specialist
A.O. Box 11628
Santa Rosa, CA 95406
Dear Ms. Florey;
This letter is written in response to your letter dated April 17, 2009. I do not know 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,
am 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 malting 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%. Diversion
volume during the months April through October has also been reduced, for some 25%
between 2004 and 2007, and I6%o 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 find 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 Ranney and Well #3 draw water from an alluvial zone along the
Russian River. The pumping capacity of both the Ranney 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 Arnold Schwarzenegger declared a water
shortage. On February 26, 2009, the City received a letter from Victoria A.
300 SEMINARY AVENUE UKIAH, CA 95482-5400
Phone# 707/463-6200 Fax# 707/463-6204 Web Address: www.cityofukiah.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 the next few months. Funding for this important resource
deliArt y project will be explored from all possible resources, as the City fully
recognizes the value of using 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 unreasonable 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. C ambers
Manager
Attachments: 1. City of Ukiah Water Use
2. City of Ukiah Water Conservation Program 2009
City of Ulctah Water Use
Annual Water Use
MG
2008
1192.968
-11.4% 2008/2004
2007
1229.964
-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 z008
2009 2007/2004
2008/2004
April
96:743
87.507 87.865
-10%
-9%
May
145.402
121.505 132.345
-16%
-9%
June
162.897
149.782 143.469
-8%
-12%
July
185.876
164.473 158.899
-1295
-15%
August
1.79,326
162,859 157.056
-9%
-12%
Sept.
356.798
134.481 130.508
-14%
-17%
Oct.
109.224
83.777 91.724
-2395
-1690
Total
MG
1036.266
904.385 901.866
-13%
-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%
-1%
June
129.493
109.976 102.115
-15%
-21%
July
131.935
105.631 109.09.
-2096
-17%
August
126.768
104 101.593
-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 64S.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
2008 compared to 2004.
Currently, the City's conservation program includes the following DMMs:
DMM 1. Water survey programs for single-family residential and mufti-family 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 S. 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 regbiar 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 trill stuffers, distribution of the Consumer Confidence Report, radio
broadcasts, newspaper articles, the City of Ukiah'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 8. 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 9. 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 guldelines so that price Increases across meter size In
proportion to the potential demand a customer can place on the water system.
DMM 12. 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 publio 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.
III. 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-application 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 Cailfarnle 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-efficient landscaping (long term)
• Water waste ordinance prohibiting; (immediate)
1, gutterflooding
2. carwash fundraisers
3. non-recycling decorative water fountains
4, breaks or leaks in the water delivery system
• Incentives far Retrofits (long term)
a., low flow shower heads
2, toilet displacement devices
3, toilet flappers
4. faucet aerators
5. high efficiency washing machines
6, ultra-low flow toilets
ITEM NO.:
MEETING DATE:
City o_f ,ZZIEjah
AGENDA SUMMARY REPORT
7i
January, 2011
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 Page 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: Lauren McPhaul, Public Works Water & Sewer Project Coordinator
Coordinated with: Jane Chambers, City Manager
Attachments: None.
Approved: L-
Ja Chambers, 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: January 19, 2011
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 9t". The lowest, qualifying bid was submitted by Wipf Construction
in the amount of $377,000 and was approved by Council on February 17t". Construction began April 26,
2010.
The pump house at Oak Manor well #8 is complete. All equipment is in place and Eaton technicians has
inspect the motor and box. Electricity has been supplied to the well site. Water Treatment Plant
personnel are in the final stages of testing the electronic system and other components before putting the
well into service.
ITEM NO.: 7j
MEETING DATE: January 19, 201
c`i.e1 if ukiaF
AGENDA SUMMARY REPORT
SUBJECT: APPROVAL OF CHANGE ORDER #1 WITH BALANCE HYDROLOGICS FOR
COMPLETION OF THE PERCOLATION POND STUDY AND ASSOCIATED BUDGET
AMENDMENT IN THE AMOUNT OF $17,446.69
Background: At the regular meeting of December 2, 2009, City Council approved an agreement with
Balance Hydrologics to complete phase 2 of the hydrogeologic study of the percolation ponds at the City's
Waste Water Treatment Plant. The original amount of the contract was $50;000 and was intended to be
funded by a capacity building grant through the Califonia Department of Water Resources. During the fiscal
year 2007-2008 grant cycle, the State froze those funds and would not allow them to be released. City staff
budgeted for this study in Fiscal Year 2009-2010 due to the unavailability of grant funds and the Scope of
Work included requirements of the NPDES Discharge Permit.
Discussion: In December of 2010, the City finally received the maximum draw-down amount of grant funds
available from the Department of Water Resources for $36,282.60. At this time, it is requested that council
approve change order #1 in the amount of $17,445.69 and the associated budget amendment to pay the
balance of the invoices to Balance Hydrologics using the grants funds received. Once the final invoice is
paid, the total cost of the study will be $67,445.69 however with the acceptance of the grant funds, the
actual cost to the City is $31,163.09 of the $50,000 that was budgeted.
Fiscal Impact:
Budgeted FY 10/11 X❑ New Appropriation Not Applicable Budget Amendment Required
Amount Budgeted Source of Funds (title and Account Number Addit. Appropriation Requested
$ 612.3580.250.003 $17,445.69
Recommended Action(s): Approve change order #1 to pay the outstanding invoice to Balance
Hydrologics using grant funds received from DWR and associated budget amendment.
Alternative Council Option(s): None recommended
Citizens advised:
Requested by:
Tim Eriksen, Director of Public Works/City Engineer
Prepared by:
Jarod Thiele, Public Works Administration
Coordinated with:
Jane Chambers, City Manager; Jan Newell, Finance Controller
Attachments:
none
Approved:
ne Chambers, City Manager
City oJ-1 Ukiah
ITEM NO.: 10a
MEETING DATE:
January 19, 2011
AGENDA SUMMARY REPORT
SUBJECT: APPROVE AN AMENDMENT TO THE FISCAL YEAR 2010/2011 REVENUE
AND EXPENSE BUDGETS IN THE AMOUNTS OF ONE MILLION SIXTY-SIX
THOUSAND FIVE HUNDRED FIFTY-ONE DOLLARS AND FIVE HUNDRED
SEVENTY-SIX THOUSAND SIX HUNDRED FIFTY-FOUR DOLLARS
RESPECTIVELY
When the annual budget is developed, a variety of decisions and assumptions are
necessary. At this mid-year point, staff is bringing back an update and a request for a
modification to the adopted budget to address a few financial impacts unknown at the
time of budget adoption. Attachment #1 provides additional detail about the requested
changes. Attachment #2 provides information about the encumbrances brought forward
into FY 2010/2011 from FY 2009/2010.
REVENUE:
As reported in December, General Fund revenue for FY 2009/2010 exceeded
expectations. In some instances, revenue for FY 2010/2011 was estimated from FY
2009/2010 projections. The improved results for FY 2009/2010 can be extended into
improved expectations for FY 2010/2011. Staff proposes adding $484,629 to the
General Fund #100 revenue and adding $145,922 to the Public Safety Fund #105
revenue.
RECOMMENDED ACTION: 1) Approve FY 2010/2011 budget amendments as
proposed by staff.
ALTERNATIVE COUNCIL POLICY OPTIONS: Approve modified budget amendments;
or take no action.
Citizens Advised: Ukiah Valley Sanitation District
Prepared by: Gordon Elton, Finance Director
Coordinated with: Jane Chambers, City Manager
Department Directors
Attachments: 1) Budget amendment schedule
2) Encumbrance schedule
Approved:
ne Chambers, City Manager
Additional revenue amendments are the addition of $400,000 for the C.D.B.G. grant for
the Ukiah Community Center/Food Bank and $36,000 for the ARC program. The total
revenue proposed for addition to the budget is $1,06.6,551.
Expenditures:
In addition to the expenses related to the C.D.B.G. grant and the ARC program
($400,000 and $35,500 respectively), expense budget modifications are proposed for
the Human Resources department ($7,000) and the Liability Insurance Reserve Fund
for increased insurance premiums ($46,711). Staff is also requesting an additional
appropriation, in all funds with personnel, for unemployment insurance expense
($92,089). The additional expenditures proposed for addition to the City budget are
$576,654. In addition to the portion of unemployment insurance in Redevelopment
($4,646), staff is requesting $5,021 for the Green Works project as previously discussed
with Council, and $20,000 for the Mobilehome Park Rent Control administration. The
total combined appropriation requested is $606,321.
The City is self-insured for unemployment compensation and reimburses the State for
the amounts of actual benefits paid to former employees. In the past, the City
maintained a reserve of approximately $100,000 to pay potential claims. The rate
charged in the budget was not sufficient to maintain this reserve. The reserve is
completely depleted and must be funded to offset payments that will be made to the
State and to begin re-establishing a reserve balance. The additional General Fund
expense is $21,491 and the Public Safety Fund expense is $25,876. The
Redevelopment Agency's share will be $4,646 and the other funds' shares will be the
remaining $40,076. The detailed schedule by each budget is in attachment #1.
Redevelopment:
Additional appropriation for unemployment insurance $ 4,646
Green Works project $ 5,021
Mobile Home Rent Control $20,000
Total additional appropriation $29,667
The unemployment insurance appropriation is recommended on the same basis as the
recommended appropriation in the City budget previously discussed. The Green Works
project appropriation is requested on the basis that revenue generated from the 2009
event resulted in a balance of $5,021 which was added to the unencumbered fund
balance in the Redevelopment Projects Fund #965. Mobile home rent control
monitoring was added for the anticipated expense for administrative work implementing
the recently adopted mobile home rent control ordinance.
Recommendation:
Staff recommends approval of the budget amendment for the City as detailed in
Attachment #1 and as discussed above.
Page 2 of 3
OTHER BUDGET INFORMATION:
Encumbrances:
An additional component of the operating budget each year is encumbrances from the
prior year. When the departments project their expenditures for year end, they include
all commitments and contracts which have been signed and had purchase orders
issued. This results in a reduction of available fund balance, by these amounts, when
the next year's budget is considered. When the final expenditures for the year ended
are determined, amounts remaining as encumbrances are no longer considered. The
result of this is to increase the fund balance carried forward. The next step is to
increase the adopted budget by the amount of encumbrances. The end result of this is
no change in the fund balance overall.
The encumbrances at June 30, 2010 were $7,594,968. Attachment #2 lists these
amounts for each fund. This amount may seem quite large compared to the City's total
budget. The obligations for significant projects underway account for more than $7
million of the total. The remaining amount, for more routine operating activities, is less
than $600,000. Encumbrances for major projects include:
Skate Park
750,841
Anton Stadium
147,397
Corp Yard Remediation
320,126
Gobbi/Babcock intersection
887,835
CDBG Grant - 1St time home buyers
444,769
Kiewit - Wastewater plant
1,010,444
Electric Substation project
2,788,090
Oak Manor well
245,837
Redwood Business Park Improvements
205,085
Fagade Improvement Grants
31,306
Wal-Mart EIR preparation
225,794
All other encumbrances
537,444
Total Encumbrances
7,594,968
I know the budget treatment of encumbrances can be confusing. I will address specific
questions during the discussion of this item. Overall I'll describe encumbrances as an
accounting tool that moves the expenses from the year we thought they would be in to
the year they are actually in, with no overall impact.
Page 3 of 3
Mid-Year Budget Amendment
Fiscal Year 2010-2011
Item 1 Oa 1
Attachment #1
1-19-2011
Total Amendments By Fund
Fund Name
Revenue
Expense
100 General Fund #100
484,629
28,491
105 Public Safety Fund
145,922
25,876
110 Strategic Reserve Fund
140 Park Development Fund
205 Police Department Grant
290
250 Special Revenue Fund
270 Signalization Fund
290 Bridge Fund
330 STIP Fund
336 Home Grant Fund
337 New CDBG Fund
400,000
400,000
341 Surface Transportation Projects (S.T.P.) Fund
New ARC Fund
36,000
35,500
410 Conference Center
904
575 Garage Maintenance & Oper.
1,390
600 Airport
1,401
611 Wastewater Construction
612 Wastewater Fimd
8,277
660 Sanitary Disposal Site
45
664 Landfill Closure
678 Dispatch
4,637
695 Golf Course
1,446
696 Purchasing And Stores
919
697 Billing Department
2,708
698 Equipment Replacement
699 Capital Projects
800 Electric Fund
11,882
805 Street Lights, Maint & Operation
284
806 Public Benefits Program Exp
327
820 Water
5,566
840 Water Projects
920 Liability Insurance
46,711
Total City of Ukiah Budget Amendment
1,066,551
576,654
960 Redevelopment
3,142
962 Redevelopment Housing
21,504
965 Redevelopment Projects
5,021
Total Redevelopment Agency Budget Amendme
-
29,667
Total Amendments
1,066,551
606,321
Summary by Fund Page 1 of 7
Item _ 1 na 1
Attachment #1
Mid-year Budget Update 1-19-2011
Proposed Mid-Year Budget Amendments - FY 2010/2011
Increase
(Decrease) to
Account # Description/Discussion of amendment Budget
General Fund Revenue
Property Taxes
8,700
Sales Tax
263,629
Triple-Flip Property Tax in lieu
78,376
Prop 172 Sales Tax
2,602
Property Transfer Tax
(1,300)
Room Occupancy Tax 8%
8,900
Room Occupancy Tax 2%
2,219
Business License Tax
92,634
PG&E Utility Franchise
(7,600)
City Utility Franchise Fees
(75,333)
Electrical Permits
1,300
Plumbing Permits
2,700
Mechanical Permits
1,600
Taxi Permits
150
Justice Court Fines
30,000
Restitution
2,162
Interest On Investments
132,082
Train Depot Rent
5,617
Council Chamber Rentals
2,650
Basketball Program
1,824
Co-Ed Softball
8,175
Attendance, Donations
(3,250)
Sun House Meeting Rentals
1,000
Staff Review & Research
900
Emergency Resp. Reimb.-Police
950
Miscellaneous Fire
200
Fire Prevention Fees
3,350
OES Response Reimbursement
7,292
Ambulance Fees
(43,000)
Reimbursable Jobs
1,100
Sun House Guild Support (Eliminate amount budgeted twice)
(45,000)
Total General Fund #100 Revenue increase
484,629
Revenue estimates were updated after revenue for FY 2009/2010 was finalized. Actual
year to date revenue was reviewed and new revenue estimates prepared. The result is a
significant increase in the revenue for the year.
Measure "S" Revenue
Sales Tax 145,922
Actual sales tax receipts were reviewed and the City's sales tax consultant presented
updated projections which resulted in an improved estimate of revenue for the current
fiscal year.
Amendments Page 2 of 7
Item 10al
Attachment #1
Proposed Mid-Year Budget Amendments - FY 2010/2011
Mid-year Budget Update 1-19-2011
Increase
(Decrease) to
Account # Description/Discussion of amendment Budget
Liability Insurance Reserve
920.1990.345.000 Earthquake & Flood Insurance 46,711
At the time of budget submittal, the earthquake & flood premiums for FY 2010-11 were
not yet available, as the premiums are charged from November to November.
Therefore we budgeted last year's amount of $130,432. The premium due for
11/17/2010 -11/17/2011 was actually $177,143.
Human Resources/Risk Management
100.1601.690.002 Recruitment advertising
100.1601.690.003 Interview supplies
100.1601.690.005 New employee fingerprinting
The 2010-11 Human Resources budget was scaled back substantially in the sub-
accounts which support our recruitment and interview activities, based upon the
assumption that we would be conducting very few recruitments in the current
budget crisis. However, HR has conducted several recruitments for new
positions, unanticipated replacement of employees who resigned/retired, as well
as multiple recruitments for a few hard to fill management positions in Finance.
Our recruitments thus far have resulted in 9 new hires since July 1st, with 4
recruitments still pending. Human Resources is aware of the potential for at least
two more future recruitments, in addition to Day Camp and Pool employees next
Spring. This does not take into account any resignations or retirements we have
not yet been made aware of. To date this fiscal year Human Resources has
spent $11,533.01 in advertising, which includes the usual advertising in the Daily
Journal, Press Democrat, and Jobs Available. In addition, for the Finance and
Electric Utility recruitments we advertised in industry-specific publications or
websites, which increased the usual cost for each recruitment. The fiscal year is
only half over, so it is certain more advertising funds will be necessary. The
original budget request for advertising was $15,000, but it was decreased to
$10,000 during the budget process.
6,000
500
500
337.New CDBG Grant for Public Facilities - Ukiah Community Center/Food Bank
Grant revenue
CDBG Grant revenue
400,000
337.grant expense
CDBG Activity Delivery Expense
29,600
337.grant expense
CDBG General Administration
30,000
337.grant expense
CDBG Facilities Project
340,400
Under the project coordination and partnership with the Community Development
Commission of Mendocino County (CDC), the City of Ukiah was awarded a
Community Development Block Grant (CDBG) in the amount of $400,000 for a
facilities renovation project for the Ukiah Community Center & Food Bank. The
revenue from the grant award will offset project costs. The project will be
managed and administered through CDC.
Amendments Page 3 of 7
Item IOa1
Attachment #1
Mid-year Budget Update 1-19-2011
Proposed Mid-Year Budget Amendments - FY 2010/2011
Increase
(Decrease) to
Account # Description/Discussion of amendment Budget
ARC Operating Budget (See attached detail list)
Tenantrevenue
13,000
Other rental rvenue
10,000
City program contributions
8,000
Miscellaneous revenue
5,000
Personnel costs
7,500
Operations and Maintenance
23,000
Contribution to Capital Replacement Reserve
5,000
This budget implements the Operating agreement for February through June 2011,
between the City and ARC approved in October 2010.
Unemployment Insurance expense increase (see attached detail)
General Fund
Unemployment insurance expense increase
21,491
Public Safety Fund
Unemployment insurance expense increase
25,876
Water Enterprise
Unemployment insurance expense increase
5,566
Sewer Enterprise
Unemployment insurance expense increase
8,277
Electric Enterprise
Unemployment insurance expense increase
11,882
Redevelopment
Unemployment insurance expense increase
4,646
Other Funds
Unemployment insurance expense increase
14,351
Total Unemployment insurance expense increase
92,089
The City is self insured for unemployment benefits. The State bills the City for the actual
insurance benefits paid to former employees. The city reserves an amount in each
budget period to provide funding for the benefits paid. Due to the federal extension of
the unemployment benefits period, costs to the City have increased significantly. When
this is added on top of the increased costs for benefits to laid off workers in the past two
years, the reserve of benefits is depleted. The proposed budget increase will fund the
estimated costs of benefits plus build a reserve balance of approximately $30,000.
Green Works Conference
965.5616.690.008 Green Works Events 5,021
Revenue from the Green Works Conference in 2009 was $8,802
Expenditures for the conference were $3,781
The net income was deposited in the RDA Projects Fund #956 and is included in the
available Fund Balance when the FY 2010/2011 budget was prepared. The Community
Services department is requesting a budget appropriation of the previous net revenue
to fund the current year Green Works event.
Amendments Page 4 of 7
Item 10a1
Attachment #1
Mid-year Budget Update 1-19-2011
CITY OF UKIAH
Special Revenue Fund: ARC General Operating Account
ACCOUNT NO. TBD February 2011-June 2011 FY 10/11
REVENUE
Tenant Revenue $ 13,000
Other Rental Revenue $ 10,000
Other Program Revenue
Contribution from City Programs $ 8,000
Miscellaneous Revenue $ 5,000
Total Revenue $ 36,000
EXPENSE
111
Salaries, Non-Regular
$
6,000
.000 2 Facility Attendant (15 hours per week @ $10.00 per hour)
For 20 weeks: thru the end of the fiscal year
115
Salaries Overtime and Holidays
$
-
141-156 Employee Benefits
$
1,500
.000 Workers Compensation Insurance, Group Insurance,
Unemployment Insurance, FICA, Medicare.
210
Utilities
$
8,000
.000 City and PG&E utilities (with gym open)
220
Telephone
$
1,000
.000 Maintenance agreement, long distance and system charges.
250
Contractual Services
$
2,000
.000 Pest Control, Routine Carpet Cleaning
301
Building Maintenance and Repair
$
3,000
.000 Building maintenance and repair
302
Equipment Maintenance and Repair
$
2,000
.000 Heating, air conditioning, and miscellaneous equipment.
690
Supplies
$
7,000
.000 Building maintenance supplies
711
Contribution to Capital Replacement Reserve (699)
$
5,000
Total Expenditures
$
35,500
S:\Administration\Agendas & ASRs\Jan 19 Regular Agenda\Budget amendment attach 1- ARC Page 5 of 7
Item 10a1
Attachment #1
Mid-year Budget Update 1-19-2011
Adjustment to Unemployment Insurance Expense, account #155
Department
Adopted
Proposed
Addition
100.1101
City Clerk
$
133
332
$
199
100.1201
City Manager
$
554
1,387
$
833
100.1301
Finance Administration
$
1,714
4,286
$
2,572
100.1501
Planning
$
1,026
2,565
$
1,539
100.1601
Personnel/Risk Management
$
905
2,262
$
1,357
100.1905
Administrative Support
$
169
423
$
254
100.1915
General Govt Bldgs
$
896
2,242
$
1,346
100.1965
Information Technology
$
1,110
2,776
$
1,666
100.2201
Building Department
$
604
1,512
$
908
100.3001
Eng & Administration
$
837
2,092
$
1,255
100.3110
Street Maintenance
$
2,396
5,989
$
3,593
100.3150
Traffic Signals
$
-
0
$
-
100.3301
Corporation Yard
$
28
70
$
42
100.6001
Comm. Svcs., Parks
$
1,801
4,426
$
2,625
100.6005
Animal Control
$
-
0
$
-
100.6110
Comm. Svcs., Recreation
$
318
796
$
478
100.6111
Basketball Program
$
162
404
$
242
100.6112
Youth Softball
$
30
74
$
44
100.6113
Co-Ed Softball
$
33
83
$
50
100.6114
Day Camp Program
$
359
896
$
537
100.6115
Adult Softball
$
113
281
$
168
100.6116
Co-Ed Volleyball
$
7
17
$
10
100.6117
Adult Basketball Program
$
5
12
$
7
100.6130
Comm. Svcs., Aquatics Prog.
$
367
915
$
548
100.6150
Comm. Svcs., Sun House
$
811
2,029
$
1,218
Total General Fund #100
$
14,378
$
35,869
$
21,491
105.2001
Police Department
$
9,777
24,445
$
14,668
105.2006
Community Oriented Policing
$
287
717
$
430
105.2080
Major Crimes Task Force
$
383
956
$
573
105.2101
Fire Department
$
6,807
17,012
$
10,205
Total Public Safety Fund
$
17,254
$
43,130
$
25,876
612.3505
Sewer Administration & General
$
822
2,055
$
1,233
612.3510
Sewer System Maintenance
$
1,752
4,376
$
2,624
612.3580
Sewer Treatment Plant Op & Maint
$
2,945
7,365
$
4,420
Total Wastewater Fimd
$
5,519
$
13,796
$
8,277
800.3642
Electric Dist. Plant/Station Equip
$
577
1,435
$
858
800.3646
Electric Dist. Plant/Undergrnd Dist
$
408
1,013
$
605
800.3650
Electric Dist.. Plant, Meters
$
359
896
$
537
800.3728
Electric Distrib, 0 H Line Expenses
$
1,893
4,733
$
2,840
800.3729
Electric Distrib , Undergrnd Line Exi
$
1,368
3,417
$
2,049
800.3733
Electric Distrib, Misc Expense
$
2,451
6,128
$
3,677
800.3765
Electric Adm/Gen/Misc. Expense
$
687
1,716
$
1,029
800.5536
Electric Lake Mendocino Expense
$
192
479
$
287
Total Electric Fund
$
7,935
$
19,817
$
11,882
UI detail Page 6 of 7
Item 10a1
Attachment #1
Mid-year Budget Update 1-19-2011
Adjustment to Unemployment Insurance Expense, account #155
Department
820.3901 Water Admin & General
820.3908 Water Pumping Labor & Expense
820.3948 Water Maintenance Of Services
820.3960 Water Meter Reading Expense
Total Water
960.5601 Community Redevelopment
962.5602 Redevelopment Housing Fund
Total Redevelopment
205.2001
410.6190
575.5801
600.5001
660.3401
678.2040
678.2050
695.6120
696.1390
697.1305
805.4001
806.3765
Police Department Grant
Conference Center
Garage Maintenance & Oper.
Airport
Sanitary Disposal Site
Police/Civilian Dispatch
FBPD Dispatch
Golf Course
Purchasing And Stores
Billing Department
Street Lights, Maint & Operation
Public Benefits Program Exp
Total Other Funds
Total All Funds
Adopted Proposed Addition
$
620
1,549
$
929
$
1,646
4,112
$
2,466
$
1,204
3,012
$
1,808
$
243
606
$
363
$
3,713 $
9,279
$
5,566
$
2,095
5,237
$
3,142
$
1,002
2,506
$
1,504
$
3,097 $
7,743
$
4,646
$
193
483
$
290
$
603
1,507
$
904
$
926
2,316
$
1,390
$
934
2,335
$
1,401
$
30
75
$
45
$
2,275
5,687
$
3,412
$
816
2,041
$
1,225
$
964
2,410
$
1,446
$
613
1,532
$
919
$
1,754
4,462
$
2,708
$
194
478
$
284
$
214
541
$
327
$
9,516 $
23,867
$
14,351
$ 61,412 $ 153,501 $ 92,089
UI detail Page 7 of 7
Item #:-I Oa2
Attachment #2
Mid-Year Budget Update 1-19-2011
Summary of Encumbrances Added to the Budget - FY 2010/2011
Increase to
Account # Description/Discussion of amendment Budget
Encumbrances Carried Forward from FY 2009/2010
100
General Fund #100
105
Public Safety Fund
110
Strategic Reserve Fund
140
Park Development Fund
250
Special Revenue Fund
270
Signalization Fund
290
Bridge Fund
330
STIP Fund
336
Home Grant Fund
341
Surface Transportation Projects (S.T.P.) Fund
410
Conference Center
611
Wastewater Construction
612
Wastewater Fund
660
Sanitary Disposal Site
664
Landfill Closure
695
Golf Course
696
Purchasing And Stores
698
Equipment Replacement
699
Capital Projects
800
Electric Fund
806
Public Benefits Program
820
Water
840
Water Projects
Total City Encumbrances
960 Redevelopment
962 Redevelopment Housing
965 Redevelopment Projects
Total Redevelopment Encumbrances
Total Encumbrances added to budget
Encumbrances were included in the FY 2009/2010 Projected actual total expenses and
therefore reduced the available fund balance. The updated actual expenses for FY
2009/2010 do not include these amounts and therefore increase the fund balance as of
June 30, 2010. The effect of adding the encumbrances to the FY 2010/2011 budget has no
effect on the projected fund balance as of June 30, 2011.
366,259
30,705
573
952,360
320,812
1,430
2,797
887,835
444,769
5,239
186
1,010,444
131,555
5,462
62,326
372
347
5,311
19,311
2,788,090
1,668
56,587
245,837
868
6,340
247.485
Encumbrance list Page 1 of 1
City 0j'7lkiafi.
ITEM NO.: 10b
MEETING DATE.
AGENDA SUMMARY REPORT
January 19, 2011
SUBJECT: CONSIDERATION FOR ADOPTION OF PREQUALIFICATION PROCESS FOR
RIVERSIDE PARK PHASE ONE TRAILS AND RE-VEGETATION PROJECT FUNDED
BY CALIFORNIA RESOURCES AGENCY RIVER PARKWAYS GRANT
Summary: The City of Ukiah Community Services Department is managing the Riverside Park
Development Project funded by the California Resources Agency River Parkways Grant program. At
the City Council meeting on January 5, 2011 staff provided Council with information on a prequalification
process. The item is now scheduled for consideration and potential action by adopting a resolution.
Background: In June of 2008, the California Resources Agency announced their River Parkways Grant
Program Awards to 31 cities in the state of California with the City of Ukiah receiving an award for
$810,000 for Riverside Park. Riverside Park is located at the east end of Gobbi Street. The grant project
area or "Phase V includes improvements to the entry area, construction of the main trail, one river
access trail and one loop trail. The improvements will meet the River Parkways criteria for restoration of
the riparian habitat by removing invasive vegetation and replanting native species. Phase 1 will include
approximately 2,500 linear feet of trail and 1,200 linear feet of river bank riparian restoration.
The City has completed a number of steps for the preparation of construction at the site. The designers
and engineers have produced final plans and specifications for the work and those plans are under
review by the City Planning and Building Dept. Permits have been secured from Fish & Game as well as
Water Quality. The majority of rough grading and debris removal has been completed at the site. In the
coming weeks the City will have the final plans and specifications ready for adoption by City Council. The
engineers estimate for this project is $600,000 and it is anticipated that the work will take 12-18 months.
In an effort to be properly prepared for the bid advertising staff is seeking direction from City Council to
adopt a prequalification process.
Recommended Action(s): Adopt Resolution for a Prequalification Process for Riverside Park Phase
One Trails and Re-vegetation Project.
Alternative Council Option(s): Remand to staff with direction.
Citizens advised:
North Coast Builders Exchange
Requested by:
N/A
Prepared by:
Katie Marsolan, Community Services Administrator
Coordinated with:
Jane Chambers, City Manager, David Rapport, City Attorney, Mary Horger,
Purchasing Supervisor
Attachments:
1. Letter to Builders Exchange
2. Draft Resolution & Exhibits; "Exhibit A" Prequalification Questionnaire, "Exhibit B"
Uniform Rating System and Procedures, "Exhibit C" Comparable Project
Verification Questions and Procedures
3. Previous Agenda Summary Report on the Prequalification Process (1-5-11)
Approved:
J n Chambers, City Manager
Discussion: California State Legislature allows public agencies to require licensed contractors that wish
to bid for public works jobs to "pre-qualify" for the right to bid on a specific public works project. Due to the
unique conditions of the planned work for Riverside Park staff has suggested that the City consider
adopting a prequalification for this project. The prequalification concept was presented during the Council
meetings on April 21, 2010, June 2, 2010 and again on January 5, 2011. Further background information is
outlined in the most recent Agenda Summary Report included as Attachment #5.
In an effort to gather public input staff has shared this item with the Park, Recreation and Golf Commission,
the Paths Open Space and Creeks Commission and also the information to the North Coast Builders
Exchange. Staff directed a letter to the Builders Exchange inviting their comments. The letter is included
as Attachment #1. Staff also posted the draft plans on the Cities website for review. At this point staff has
received questions about the project plans but no specific comments on the prequalification process.
Staff has included the draft resolution and draft prequalification packet (Attachment #2 & #3). The packet
includes the procedures, questionnaire, verification process and scoring criteria. Generally the
questionnaire addresses the prospective bidders' basic financial stability, addresses the prospective
bidders' company history and past performance, and addresses project specific experience. Staff will
score the questionnaires from each prospective bidder using the uniform scoring criteria listed in the
packet. A prospective bidder must meet certain minimum scores within each section to be prequalified to
bid on the project.
Staff utilized the questionnaire model form created by the State Department of Industrial Relations
pursuant to Section 20101 of the Public Contract Code. Staff revised the questionnaire to reduce the
length of the questions as they are shown in the State Dept model form. Staff also reduced the
requirement for additional attachments. For example, the State model requires a notarized statement from
the contractor surety company. Staff felt that asking the contractor to provide additional documents, such
as this, was not to the benefit of the City or to the contractor. At the conclusion of the revisions the packet
includes only the information that is most relevant and applicable for the Trail & Re-vegetation Project. The
draft packet has been reviewed by the City Attorney.
In addition to the revisions staff has since consulted with the designers and made one additional revision.
At the January 5th meeting there was a concern about the questions being specific to work completed in the
past 5 years. The concern was that during the recent down-turn in the economy there was less work
conducted and completed by contractors. Staff has since expanded the window of time in the
questionnaire. A contractor may now include general project experience conducted in the past 10 years
and specific project experience conducted in the past 7 years.
The overall goal of the prequalification process is to award the project to the lowest responsible bidder.
The draft documents were designed to be inclusive and user-friendly so that the City may receive
numerous competitive bids from a variety of contractors. The prime contractor for this project will be
required to possess a State of California Class A (General Engineering) Contractor's License. Staff feels
confident that there are numerous local and regional contractors who meet the licensing requirement and
criteria described in the prequalification. The prequalification process is not designed to exclude bidders. It
is designed to ensure that the work is performed to the highest quality with the lowest cost.
Staff is recommending that Council adopt the resolution and corresponding prequalification packet which
outlines the procedures. Staff is recommending that the City conduct the prequalification process
concurrently with the project bidding process. When staff has received final comments from the Planning
and Building Dept., staff will return to Council to adopt the final plans and specifications.
Fiscal Impact:
Budgeted FY 10/11 1-1 New Appropriation Not Applicable Budget Amendment Required
Attachment #
December 30, 2010
North Coast Builders Exchange
1030 Apollo Way
Santa Rosa, California 95482
City of Ukiah
To Whom It May Concern:
The City of Ukiah is currently preparing plans and specifications for construction at Riverside Park. In
preparation for the bidding process the City is considering a prequalification component. In an effort to
collect public input, the City is notifying the Builders Exchange with the draft prequalification
information (enclosed).
The City of Ukiah Community Services Department is managing the Riverside Park Development Project
funded by the California Resources Agency River Parkways Grant program. Riverside Park is located at
the east end of Gobbi Street in Ukiah. The grant project area or "Phase One" includes improvements to
the entry area, construction of the main trail, one river access trail and one loop trail. The improvements
will meet the River Parkways criteria for restoration of the. riparian habitat by removing invasive
vegetation and replanting native species. Phase One will include approximately 2,500 linear feet of trail
and 1,200 linear feet of river bank riparian restoration.
The City is in the midst of preparing the plans and specifications for Riverside Park Phase One Trails &
Revegetation, with a target to have the project bid awarded, then construction beginning in the
Spring/Summer 2011, when conditions are best for work in and near the river. The prime contractor for
this work will be required to possess a State of California Class A (General Engineering) Contractor's
License.. Draft plans are available for your review on the City's website:
http://www.cityofukiah.comipageserVer/?page=purchasin main.
Because the planned work requires certain specialty construction items, the City has investigated a
prequalification process to assist in the selection of the lowest responsible bidder. These specialties relate
primarily to the revegetation process and construction within the main channel of the river. With regard
to revegetation, the grant funding contract specifies that the project must have 80% success rate in the
revegetation. Therefore the success rate of the invasive plant removal as well as the, new plant growth is a
very significant concern. Likewise, construction within the main channel of the river will be subject to
close regulatory scrutiny. City staff feels that for this project to be successful it is important that the
contractor has specific experience in this type of work.
The draft prequalification documents include the procedures, questionnaire, scoring requirements and
project verification procedures. Generally the process includes a questionnaire that addresses the
prospective bidders' basic financial stability, addresses the prospective bidders' company history and past
300 SEMINARY AVENUE UKIAH, CA 95482-5400
Phone# 707/463-6200 • Fax# 707/463-6204 Web Address: www.cityofukiah.com
performance, and addresses project specific experience. A prospective bidder would be required to meet
certain minimum scores within each section to be prequalified to bid on the project.
The City Council will be discussing this as a non-action item during the regularly scheduled meeting on
January 51h, with the plan to continue the item for further discussion and possible action at their meeting
on January 19`h. If a prequalification process is approved to be utilized for bidding specifically the
Riverside Trails and Revegetation Project, the City Council would adopt a resolution as such. Further
information including the meeting agenda and agenda summary reports are posted on the City's website:
http://www.cityofukiah.com/pageserver/?page=council agendas.
The public is invited to attend the City Council meetings and share their comments. Comments can
also be submitted in writing to: City of Ukiah Purchasing Department, 411 We9t Clay Street, Ukiah,
CA 95482. Fax: (707) 463-6234, Email: mhorger@cityofukiah.com. The deadline for comment
submission is 5 p.m., Monday, January 10th, 2011 to allow time for review and consideration.
Sincerely,
Mary or,
City of
Cc: Katie Merz, Community Services Administrator
File
Attachment # ~2-
RESOLUTION 2011-
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF UKIAH
ESTABLISHING A PREQUALIFICATION PROCESS TO BE USED FOR BIDDING THE
CONSTRUCITON OF RIVERSIDE PARK PHASE ONE
TRAILS AND REVEGETATION PROJECT
WHEREAS, the City of Ukiah will be advertising for bids for construction of the Riverside
Park Phase One Trails and Revegetation Project; and
WHEREAS, the City Council recognizes that the Project re specialty construction
processes such as eradication of invasive species, revegatation ati species and
construction within the main channel of the river; and
WHEREAS, the City's performance of the Project is'der th° ulatory review of the
Department of Fish and Game and the Regional Water l6-,Contro rd; and
WHEREAS, the grant funding guidelines a t by the,, California Re es, gency
require the City to successfully perform the Proj s to re " ive full grants ~ s and
reimbursement toward the Project; and
WHEREAS, the State of Californ' Public Contrac de (PCC) 20101 permits cities to
prequalify contractors who wish to bid o c works contr and
WHEREAS, the City has developed, un stem of r g bidders based on
objective criteria in accordance with PCC 201; a
WHEREAS, the C' ~ftions/' developesytem rough which decisions regarding a
prospective bidders qu aty be appea in accordance with PCC.20101; and
NOW, THEREFORE, BE 11 S that the Council of the City of'Ukiah hereby
resolve to require ectiv side Park Phase One Trails and
Revegetation pre ;ed in ac ance with PCC 20101, and in so resolving the
City Coun ' dopts the ing and procedures for use as the basis for prequalifying
prospec ' idders:
ualification tionn "Exhibit A"
B. U Rating Sy any Procedures "Exhibit B"
C. Com le Projec_ erification Questions and Procedures "Exhibit C"
PASSED AND NXYPTED this 19th day of January, 2011, by the following roll call vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
ATTEST:
Mayor
Joanne Currie, City Clerk
Exhibit A
CITY OF UKIAH
MENDOCINO COUNTY, CALIFORNIA
BIDDER PRE-QUALIFICATION QUESTIONNAIRE
FOR
iO F COMMUNITY SERVICES
IE,
300 Seminary Avenue
City of laki:ah
I BIDDER PRE-QUALIFICATION PROCEDURES
INTRODUCTION
In 1999, the California State Legislature enacted a law that allows many public agencies to require licensed contractors
that wish to bid for public works jobs to "pre-qualify" for the right to bid on a specific public works project, or on public
works project undertaken by a public agency during a specified period of time. Public Contract Code section 20101 was
enacted as part of Assembly Bill 574. This law applies to all cities, counties and special districts. This code section
allows a public entity to require that each prospective bidder for a contract complete and submit to the entity a
standardized questionnaire in a form specified by the entity, including a complete statement of the prospective
bidder's experience in performing public works.
NOTICE OF BIDDER PREQUALFICATION REQUIREMENT
Notice is hereby given that the City of Ukiah has determined that al on Riverside Park Phase One Trails and
Revegetation Project to be undertaken by the.City of Ukiah mu lifed prior to submitting a bid on the
project. It is mandatory that all Contractors who intend ~it a Ily complete the pre-qualification
questionnaire, provide all materials requested therein, and the minimu ~e ("Minimum Score") required to
be on the final Qualified Bidders List. No bid will be ac rom a Contractor,<~j ding a joint venture, that has
failed to comply with these requirements.
If two or more business entities submit a bid as part of a j' ei
venture, each entity within the joint ven / must separat
questionnaire and must meet or exceed t um scores eA
entities that are part of a joint venture for thi , . complete
~~y..
BID DOCUMENTS
The bid documents includin specificatii ire
contractor prior to comionnaire.
license and bonding thatline in docume INSTRUCTIONS FOR PRE-QUA
It is the respo „of the
of Uki " se
Ukiah res the rie c
pect to subr 0 i id as part of a joint
Parts I and II o pre-qualification
for each of those two sections. Business
f the questionnaire jointly.
and should be reviewed by the
uestions regarding such items as
Pre-Qualification Questionnaire and any required
;rating each contractor's qualifications to bid on this
available. City of Ukiah's decision will be based on
objectivZ / rm evaluation ' ring c'rd .Please corfi°(lete all questions and provide all requested information.
Failure to may be groun deni requalifcation. City of Ukiah reserves the right to waive minor
irregularities a~~' fissions in the i
final ation c ed in the pre-qualification application submitted, and to make all
determinate j 11 011
City of Ukiah reserves 'N' ' ht to ad' ""increase, limit, suspend or rescind any contractor's pre-qualification rating,
before or after bid openin ed sequently learned information. Contractors will be notified if they become
ineligible to bid on this proje~/ f of a rating change. In such case the contractor may appeal a rating below the
minimum score as described in t meal Procedure".
Each questionnaire must be signed under penalty of perjury in the manner designated at the end of the form, by an
individual who has the legal authority to bind the Contractor on whose behalf that person is signing. If any information
provided by a Contractor becomes inaccurate, the Contractor must immediately notify City of Ukiah and provide
updated accurate information in writing, under penalty of perjury.
City of Ukiah may refuse to grant pre-qualification where the requested information and materials are not provided, or
not provided by the Questionnaire Submission Deadline. There is no appeal from the City's decision refusing to pre-
qualify a contractor based on an incomplete application or because an application was submitted after the
Riverside Park Phase One
Trails and Revegetation Project
SPECIFICATION NO.
BIDDER PRE-QUALIFICATION PROCEDURES
Page 1
Questionnaire Submission Deadline. The submission deadline for bids will not be changed in order to accommodate
supplementation of incomplete prequalification submissions, or late prequalification submissions.
SUBMISSION DEADLINE
The last date to submit a fully completed questionnaire is . 2011 ("Questionaire Submission Deadline").
Contractors are encouraged to submit pre-qualification packages as soon as possible, so that they may be notified of
omissions of information to be remedied or of their pre-qualification status well in advance of the bid advertisement
for this project.
Contractors may hand-deliver pre-qualification packages during regular working hours on any day that the offices of
City of Ukiah are open. The prequalification package must be submitted by or received by mail, on or prior to the
last date for submittal indicated above. 111
PLACE OF SUBMISSION
The pre-qualification packages should be submitted by mail or
Ukiah's City Clerk's office located at 300 Seminary Avenue,
or emailed copies will not be accepted.
CONFIDENTIALITY
The pre-qualification questionnaires and supplemental inf on
and are.not open to public inspection. All i ormation provi
law. However, the contents may be discl , hird parties t'
investigation of substantial allegations or in hearing.
applying for pre-qualification status shall be pu , e ject to
will be used for that purpose.
NOTIFICATION OF ACTION,
Upon submission of the alifici
is required, you will be no The
will be considered the rece t
qualification std o later th' "
contractor ~e ma
Notices emaile ue!
faxed. /mail or fax nu I
date they ail, faxed or d
o estionnairep/,1
ate ' hich all re
of Pre-Qua lific
s days
ess, / a
e contain
en.es shall be I
n a sealed envelope to the City of
d marked CONFIDENTIAL. Faxed
I by Contradb%, a not public records
confidential toy tent permitted by
necessary for purp'Tfe of verification or
requires that the names of contractors
and the first page of the questionnaire
f`eviev✓i IS ompleteness. If additional information
been received by the City Clerks Office,
Questionnaire. Contractors will be notified of their
submission of the information. All notices to the
r contained in the Pre-Qualification Questionnaire.
r dress. If no email address is given, notices shall be
d. Notices shall be deemed given and received on the
in th' ted States Mail.
APPEAL PRO E
A contractor may a rating be , the Minimum Score, if the contractor's questionnaire was submitted and
determined by the Ci ; be comp by the Questionnarie Submission Deadline. An appeal is begun by the
Contractor delivering to t of City Clerk's Office written notice of its appeal of the pre-qualification rating
decision. The appeal must d three (3) business days after receipt of the City's prequalification status
notification. The City Clerk shall amp any notice of appeal with the date received by the City Clerk. A contractor
who fails to file with the City Clerk a complete and timely notice of appeal waives any and all right to appeal the
contractor's rating.
The notice of appeal must contain a fax number or email address to which notices can be given. Any notice, decision or
other communication shall be deemed given and received on the date it is faxed or emailed to that number or address.
In the notice of appeal the contractor must state whether the contractor requests notification in writing of the basis for
the contractor's disqualification and any supporting evidence that has been received from others or adduced as a result
of the City's investigation (collectively, the "Rating Information").
Riverside Park Phase One
Trails and Revegetation Project
SPECIFICATION NO.
BIDDER PRE-QUALIFICATION PROCEDURES
Page 2
If the contractor files a complete and timely notice of appeal, the City shall schedule a hearing to be conducted not
later than ten (10) business days from the date the notice of appeal was filed with the City Clerk and the hearing officer
shall issue his or her written decision not later than five(5) business days prior to the deadline for submitting sealed
bids on the project. If the notice of appeal requests the Rating Information, the City must provide that information not
later than two(2) business days after the appeal was filed with the City Clerk. The City Clerk shall provide written notice
to the contractor of the date, time and location of the hearing no later than two(2) business days prior to the scheduled
hearing.
The hearing shall be conducted informally by the hearing officer, but, at a minimum, the contractor shall be given the
opportunity to rebut any evidence used as a basis for disqualification and to present evidence to the hearing officer as
to why the contractor should be found qualified. The hearing shall be electr ally recorded. It shall be closed to the
public, including other bidders, but the contractor or the Director of Com ervices or his or her designee shall be
allowed to call witnesses to testify at the hearing. The hearing office xclude witnesses, except when they are
testifying. The hearing officer shall be the City Manager or another
hearing officer shall not have participated in rating the co
of their qualifications and shall base his or her decision,
j
any documents or testimony submitted during the hears
the contractor and the Director of Community Services. Th
reasons for the decision but need not contai etailed findi MAN subject to public disclosure and shall remai ntial.
Pre-qualification Questionnaire is on the fol S.
Riverside Park Phase One
Trails and Revegetation Project
SPECIFICATION NO.
IS/ cial or perso n
based on their
ly on the notice of 210
hearing officer decision
tten decisid&should coi
~d by the City Manager. The
naires or in any investigation
the Rating Information and
e in writing and given to
i~ef explanation of the
hearing and " Icision shall not be
CURRIE
BIDDER PRE-QUALIFICATION PROCEDURES
Page 3
THIS PAGE PURPOSELY LEFT BLANK
Riverside Park Phase One
Trails and Revegetation Project
SPECIFICATION NO.
BIDDER PRE-QUALIFICATION PROCEDURES
Page 4
BIDDER PRE-QUALIFICATION QUESTIONNAIRE
FOR
THE RIVERSIDE PARK PHASE ONE TRAILS AND REVEGETATION PROJECT
Application For:
(Please print company name as it appears on license.)
Check One: ❑ Corporation ❑ sole Proprietorship
❑ Partnership ❑ Joint venture ❑ Member of Joint Venture
Address to which all applicant's correspondence is to be mailed:
Address:
Contact Person:
Email:
Phone:
If firm is a sole proprietor or partnership:
Owner(s) of Company
Contractor's License Nun~~and st°which
TO RETAIN AT
OF YOUWOMPLETED QUESTIONNAIRE FOR YOUR RECORDS
Mail or Hand Deliver to:
City of Ukiah
City Clerks Office
j j 300 Seminary Ave.
CA 95482
Submit Hardcopy: No Fax or Email copies accepted.
FOR OFFICE USE
RECEIPT DATE:
ADDITIONAL INFORMATION :
Riverside Park Phase One
Trails and Revegetation Project
SPECIFICATION NO.
BIDDER PRE-QUALIFICATION QUESTIONNAIRE
Page 1
THIS PAGE PURPOSELY LEFT BLANK
Riverside Park Phase One
Trails and Revegetation Project
SPECIFICATION NO.
BIDDER PRE-QUALIFICATION QUESTIONNAIRE
Page 2
PART I. ESSENTIAL REQUIREMENTS FOR QUALIFICATION
Contractor will be immediately disqualified if the answer to any of questions 1 through 4 is "no."
Contractor will be immediately disqualified if the answer to any of questions 5, 6, 7 or 8 is "yes."' if the
answer to question 7 is "yes," and if debarment would be the sole reason for denial of pre-qualification,
any pre-qualification issued will exclude the debarment period.
1. Contractor possesses a valid and current California Contractor's license of the class stated in the bid
documents for the Project, entitled: Special Provisions for Riverside Park Phase One Trails and Revegetation
Project ("Special Provisions").
❑ Yes ❑ No
2. Contractor has a liability insurance policy with a polity limit $1,000,000 per occurrence and
$2,000,000 aggregate.
❑ Yes ❑ No ~ j
3. Contractor has current workers' compensation policy as require Labor Code or is legally
self-insured pursuant to Labor Code section 3 seq. /~i
El Yes E] No El contractor is exempt from guirement, cause it has ployees
4.
Contractor has an admitted surety,
authorized to issue bonds in the St
❑ Yes ❑ No
5. Has your contractor's I
❑ Yes ❑ No
6. Within the last
because your firm
❑ Yes ❑ No
7. A /////V .tti
8.
At any time during
involving the awarding
government contract?
❑ Yes ❑ No
(approved
Department of I
which is
ontract 6rf0br behalf, or paid for completion
the project owner?
jir firm ineligible to bid on or be awarded a public
is works contract, pursuant to either Labor Code
ending dates of the period of debarment:
rs, has your firm, or any of its owners or officers been convicted of a crime
:t of a government construction project, or the bidding or performance of a
1 A contractor disqualified solely because of a "Yes" answer given to question 5, 6, or 8 may appeal the
disqualification and provide an explanation of the relevant circumstances during the appeal procedure.
Riverside Park Phase One
Trails and Revegetation Project BIDDER PRE-QUALIFICATION QUESTIONNAIRE
SPECIFICATION NO. Page 3
PART IL ORGANIZATION, HISTORY, ORGANIZATIONAL PERFORMANCE, COMPLIANCE WITH CIVIL AND CRIMINAL
LAWS
A. Current Organization and Structure of the Business
For Firms That Are Corporations:
1a. Date incorporated :
1b. Under the laws of what state:
1c. Provide all the following information for each person who is either (a) an officer of the corporation (president,
vice president. secretarv. treasurer). or (b) the owner of at least ten ner cent of the cornoration's stork_
Name
Position
Years with Co.
hip
MEL
For Firms That Are Partnerships:
1a.
1b.
1c.
Date of formation:
Under the laws of what state: %
Provide all the following informatio
per cent or more of the firm.
Name
Position
1a. AIMOAWof commen
1a. Date of commen
1b. Provide all of the
it venture.
rmation for each, firm that is a member of the joint venture that expects to bid
on one or more projects:
Name of firm % Ownership of Joint Venture
Riverside Park Phase One
Trails and Revegetation Project BIDDER PRE-QUALIFICATION QUESTIONNAIRE
SPECIFICATION NO. Page 4
All references to "owner" or owners" in the following questions mean the owner of owners listed above.
B. History of the Business and Organizational Performance
2. How many years has your organization been in business in California as a contractor under your present
business name and license number? years
3 years or more = 2 points
4 years = 3 points
5 years = 4 points
6 years or more = S points
i
3. Is your firm currently the debtor in a bankruptcy case?
❑ Yes ❑ No
No 3 points
Ys=Oponts
jj~
4. Was your firm in bankruptcy at any time during%/east five years? (This questi % on efers only to a bankruptcy
action that was not described in answer to questiq„n 7, above) /
❑ Yes ❑ No No = 3 points
Yes = O points
Licenses
5. Has any CSLB license hel by,
Officer (RMO) beewsuspen,
❑Yes ❑No-,;
No = 5 points
Yes = O points ji
Disputes jj ,j
6. %I t;any time in the lft/fy yea
a pra). ct under a constM ion
❑IYes~iyy
El /a~° ,
No = 5 points
Yes, 2 or less = 3)
Yes, 3 or more= 0
0l/
firm or its Responsiblaging Employee (RME) or Responsible Managing
thin the last five years j
F/h
fro
your firm beemAssessed and paid liquidates damages after completion of
ontras- with either a public or private?
//////o .
occurrere or less ❑ Yes: three occurrences or more
Riverside Park Phase One
Trails and Revegetation Project
SPECIFICATION NO.
BIDDER PRE-QUALIFICATION QUESTIONNAIRE
Page 5
NOTE: The following two questions refer only to disputes between your firm and the owner of a project.
You need not include information about disputes between your firm and a supplier, another contractor, or
subcontractor. You need not include information about "pass-through" disputes in which the actual
dispute is between a sub-contractor and a project owner. Also, you may omit reference to all disputes
about amounts of less than $50,000.
In the past five years has any claim against your firm concerning your firm's work on a construction project
been filed in court or arbitration?
❑ No ❑ Yes, one such instance ❑ Yes, two or more such instances
5 points for either "No" A MN,
3 points for "Yes" indicating I such instance
0 points for "Yes" if 2 or more such instances
8. In the past five years has your firm made any claim agains .a project;~wvner concerning work on a project or
payment for a contract and filed that claim in court or//,arbitration?
❑ No ❑ Yes, one such instance j ❑ Yes,<tw->or more such instances
5 points for either "No"
3 points for "Yes" indicating 1 such instance
j~
0 points for "Yes" i(2 or more such instances
9. In the last five years has your firm or arty rm wit ich any o your company's owners, officers or partners
was associated, been debarred, disquali iek removeo' ojherwise'l ented from bidding on, or
completing, any goverxime;% enc or ufic,works pro a„R/fo any rea o
19
E: re e/ ith re ° ao
NOT E another Eo . str o firm ich an owner, partner or officer of your
firm held aSimi / sition, an
~ ich is liste~~~s% nse to Part/question 1c on this form.
❑ Yes ❑ No
j
= 5 points
=Opoi
Yes
10. je last five years ha . ur firm j/n/denied an a crd of a public works contract based on a final finding by
a pubs j/agency that your, d pang otja responsible bidder?
F Y OF] No
No = 5 points
Yes = 0 points
11. At any time during th ;pa EM 'years, has any surety company made any payments on your firm's behalf as a
result of a default, to saiis; any claims made against a performance or payment bond issued on your firm's
behalf, in connection with a construction project, either public or private?
❑ No ❑ Yes, one such claim ❑ Yes, two or more such claims
5 points for "No"
3 points for "Yes" indicating) such claim
0 points for "Yes" more than 2 such claims
Riverside Park Phase One
Trails and Revegetation Project
SPECIFICATION NO.
BIDDER PRE-QUALIFICATION QUESTIONNAIRE
Page 6
12. In the last five years has any insurance carrier, for any form of insurance, refused to renew the insurance
policy for your firm?
❑ No ❑ Yes, one such instance ❑ Yes, two instances ❑ Yes, three or more instances
5 points for "No" or "Yes" indicating 1 such instance
3 points for "Yes" indicating 2 such instances
0 points for "Yes" or if more than 2 such instances
Criminal Matters and Related Civil Suits
13. Has your firm or any of its owners, officers or partners ever been found liable in a civil suit or found guilty in a
criminal action for making any false claim or material misrepresentation to any public agency or entity?
❑ Yes ❑ No
No = 5 points
Yes = subtract 5 points /
14.
Has your firm or any of its owners, officers or par ver been
state, or local law related to construction? A
❑ Yes ❑ No j
No = 5 point
Yes = subtract 5 points
Bonding
15. If your firm was required to pay a premi
on any project(s) on, c;"j firm wo
your firm was required o pa j;% u may
jr
cent, if you wish, gdo so. %
/j// "
❑ The rate was no ix,V.e tha
F-1 Th:e%rAt'ewas no hi>? .erth
per
5 points if the rate is°hi
3 points if the rate was
0 points for any other i
cea any tim
i
irovi a>an exK
cent j
//13F
cent fil
than on cent
her tha! per cent
V/
crime involving any federal,
per ce t for, a performance and payment bond
ng the I st~jj/ e years, state the percentage that
for a. percentage rate higher than one per
16. During the last five year's, Iias your firm ever been denied bond coverage by a surety company, or has there
ever been a period of time when your firm had no surety bond in place during a public construction project
when one was required?
❑ Yes ❑ No
No = 5 points
Yes = O points
Riverside Park Phase One
Trails and Revegetation Project
SPECIFICATION NO.
BIDDER PRE-QUALIFICATION QUESTIONNAIRE
Page 7
C. Compliance with Occupational Safety and Health Laws and with Other Labor Legislation Safety
17. Has CAL OSHA or other comparable agency of another state cited and assessed penalties against your firm for
any "serious," "willful" or "repeat" violations of its safety or health regulations in the past five years?
NOTE: If you have filed an appeal of a citation, and the Occupational Safety and Health Appeals Board has
not yet ruled on your appeal, you need not include information about it.
❑ No ❑ Yes, one such instance ❑ Yes, two such instances ❑ Yes, three or more such instances
S points for either "No" or "Yes" indicating 1 such instance
3 points for "Yes" indicating 2 such instances
0 points for "Yes" if 3 or more such instances
18. Has the federal Occupational Safety and Health Administrate rte, a; d assessed penalties against your firm
in the past five years? NOTE: If you have filed an appeal of a citation and th' Appeals Boarc1as not yet ruled on your appeal,
or if there is a court appeal
pending , you neefi Apt', information~ut the citation.
I/M/jai %
❑ No El Yes, one such instance ❑ Ysjwo such instances ❑ Ye or more such instances
Spointsfor either "No" or "Yes"indicating/~jch instance
3 points for "Yes" indicating 2 such instan - -s ' j
0 points for "Yes" if 3 or more such instance$f "M
19. Within the past five years, has the EPA d(ft Air'
Control Board cited
firm was the contr `
NOTE: If you h je
or if there is a c
❑ No ❑ Yes'
5p oints orj~
~i
3 points f fIY s" indref~
i
Opointhr`Yes" f 3 or
ent District or any Regional Water Quality
or the owner of a project on which your
//~i< ff
an app ✓of a citation/ d th Appeals B j rd has not yet ruled on your appeal,
)eal pen °g, you nee 'Tot include information about the citation.
such inst~/ pe E] Yes, tin/ such instances ❑ Yes, three or more such instances
%
j
Riverside Park Phase One
Trails and Revegetation Project
SPECIFICATION NO.
BIDDER PRE-QUALIFICATION QUESTIONNAIRE
Page 8
PART III: RECENT COMPARABLE CONSTRUCTION PROJECTS COMPLETED
A. General Project Experience
The following questions are related to projects that you have completed with a series of specific attributes. In each
case select the number of projects where you acted as the general contractor or a subcontractor.
1. Indicate the number of projects your company completed within the previous 10 years where the
construction value was greater than $500,000. If your company was a sub contractor the construction value
of your subcontract must meet or exceed this amount:
❑ Five or More Projects ❑ Two or Three Projects ❑ One Project ❑ No Projects
5 points for "Five or More"
3 points for "Two or Three Projects"
1 point for "One Project"
0 points for "No Projects"
Indicate the number of projects your company
acres of the active construction area was withir
Game or the Regional Water Quality Control Bo
❑ Five or More Projects ❑ Two or Three
5 points for "Five or More"
3 points for "Two or Three Projects"
I point for "One Project"
0 points for "No Projects"
Indicate the number
more acres of selects
1 0/,
application andha
❑ Five or More Prc
5 points for
3 points for
fg
1 point
0 noint
s 10 years where two or more
hia>Department of Fish and
❑V, &Projects
r
is 10 years which included two or
a combination herbicide
❑ No Projects
completed within the previous 10 years which included two or
blishment using a combination of seeding and containerized
5 points for "Five or More'
3 points for "Two or Three
I point for "One Project"
0 points for "No Projects"
or Three Projects
❑ No Projects
5. Indicate the number of projects your company completed within the previous 10 years which included 1,000
LF of trails constructed of stabilized aggregate not including asphaltic concrete or concrete paving:
❑ Five or More Projects ❑ Two or Three Projects ❑ One Project ❑ No Projects
5 points for "Five or More"
3 points for "Two or Three Projects"
1 point for "One Project"
0 points for "No Projects"
Riverside Park Phase One
Trails and Revegetation Project BIDDER PRE-QUALIFICATION QUESTIONNAIRE
SPECIFICATION NO. Page 9
B. Specific Project Experience and References
Project Data Sheets
The following pages of the questionnaire include the "Project Data Sheets". The Contractor shall provide information
on 3 projects completed within the last 7 years (Completed between the year 2004 through 2010) that are comparable
in scope and context to the Riverside Park Phase One Trails and Revegetation Project. Comparable projects will receive
points based on the number of the following attributes they share with the Project and how close the quantity of each
specified attribute of the comparable project is to the quantities indicated for each below.
To score the highest points possible, each project should have had the following attributes;
a. a construction contract price of $500,000 or more;
b. two (2) or more acres of improvements as measured by area
the California Department of Fish and Game and/or the Re
c. Three (3) or more acres of selective removal of non-nativ~
herbicide application and hand removal.
d. Three (3) or more acres of native plant installation abl
containerized plants.
e. 1,500 LF or more of trails constructed of stabili gregate
%j
paving.
f. one (1) acre or more of stabilized streambank or stabf~j/er
engineered (conventional) erosionlft?I techniques.
Names and contact information of references
list the above referenced number of compara
will result in immediate disqualifig on..
Provide information a
Riverside Park Phase One
Trails and Revegetation Project
SPECIFICATION NO.
project
nce located within the jurisdiction of
Quality Control Board jurisdiction.
iegetation using a combination
ment
not including
mbination of seeding and
using
or concrete
(live) or
rable prof st be current and verifiable. Failure to
i rminati stSw City that the information is invalid
Sheets.
BIDDER PRE-QUALIFICATION QUESTIONNAIRE
Page 10
PROJECT DATA SHEET
PROJECT #1
1. Project Name:
2. Project Location
3. Owner Information
Name:
Address:
Contact Person for
Experience Verification:
Phone Number for
Contact Person:
4. Contract Role: Prime Contractor , Vman's"i"of"
If sub-contractor,
Company Name:
Contact P /
Contact Pho
Sub-
contractor
the general contractor below:
5. Project Attributes: Check th
% j~~
/ j/
applicable boxes.
n
ts
oints
1 points
0 Points
Contract Price
i
El $
000
El - o
$200,000
❑ to
❑ < $200
000
,
< $500,000
< $300,000
g. Amount of the active const n
i
hi
f
w
t
the
n fts/
/ Dep / me or
El
Acre
F1 to
0.5 Acre
❑ To
❑ < 0.5 Acre
Re j Water Quality I Boa /
<2 Acres
1 Acre
funs
h. Amount ctive removal o . -
'i/,
"
2 Acres
1 Acres
native and i e vegetation
i/Ni j
bi
i
h
l
❑ >3 Acres
❑ To
❑ To
❑ < 1 Acre
com
nat
on
a app
ication/
M
<3 Acres
<2 Acres
hand removal.
I. Amount of native pla allati d
2 Acres
1 Acres
establishment using a f
❑ >_3 Acres
❑ To
❑ To
❑ < 1 Acre
seeding and containerized /
<3 Acres
<2 Acres
j. Amount of trails constructed of
stabilized aggregate not including
E] >_1,500 LF
1,000 LF to
❑
500 LF to
❑
❑ <500 LF
asphaltic concrete or concrete paving.
<1,500 LF
<1,000 LF
k. Amount of stabilized streambank or
stabilized erosive area using
0.5 Acre
0.25 Acre
bioengineered (live) or engineered
❑ >_1 Acres
❑ To
❑ To
❑ < 0.5 Acre
(conventional) erosion control
<1 Acres
<0.5 Acres
techniques.
Project owner will be contacted to verify information.
Riverside Park Phase One
Trails and Revegetation Project
SPECIFICATION NO.
BIDDER PRE-QUALIFICATION QUESTIONNAIRE
Page 11
PROJECT DATA SHEET
PROJECT #1
THIS PAGE PURPOSELY LEFT BLANK
Riverside Park Phase One
Trails and Revegetation Project
SPECIFICATION NO.
BIDDER PRE-QUALIFICATION QUESTIONNAIRE
Page 12
PROJECT DATA SHEET
PROJECT #2
1. Project Name:
2. Project Location
3. Owner Information
Name:
Address:
Contact Person for
Experience Verification:
Phone Number for
Contact Person:
4. Contract Role:
Prime Contractor
If sub-contractor,
Company Name:
Contact P
Contact Pho u
5.
Project Attributes: Check th
applicable boxes.
nts
/
oints
1 points
0 Points
j
000
$200,000
a.
Contract Price
El $
❑
o
El
to
E] < $200,000
< $500,000
< $300,000
b.
Amount of the active cons n
i
hi
jj
w
t
n f the
De
/of Fis
e or /
❑ j
❑
1 Acre
to
❑
0.5 Acre
T
❑ < 0
5 A
r
m
,
Re Water Quality I BoarB~
<2 Acres
o
1 Acre
.
cre
i
Juris
c.
Amount ctive removal o~
j
native and e vegetation u
combination h/
ns '
li
ti
❑ ?3 Acres
❑
2 Acres
To
❑
1 Acres
To
< 1 Acre
e app
ca
o
hand removal.
<3 Acres
<2 Acres
d.
Amount of native pla jallati /
'
2 Acres
1 Acres
establishment using a c
f
❑ >_3 Acres
❑
To
❑
To
❑ < 1 Acre
seeding and containerized /
<3 Acres
<2 Acres
e.
Amount of trails constructed of
stabilized aggregate not including
❑ >A,500 LF
F1
1,000 LF to
1:1
500 LF to
❑ <500 LF
asphaltic concrete or concrete paving.
<1,500 LF
<1,000 LF
f.
Amount of stabilized streambank or
stabilized erosive area using
0.5 Acre
0.25 Acre
bioengineered (live) or engineered
❑ 2t1 Acres
❑
To
❑
To
❑ < 0.5 Acre
(conventional) erosion control
<1 Acres
<0.5 Acres
techniques:
Project owner will be contacted to verify information.
Riverside Park Phase One
Trails and Revegetation Project
SPECIFICATION NO.
1% Sub-
contractor
and contact informal6r the general contractor below:
BIDDER PRE-QUALIFICATION QUESTIONNAIRE
Page 13
PROJECT DATA SHEET
PROJECT #2
THIS PAGE PURPOSELY LEFT BLANK
Riverside Park Phase One
Trails and Revegetation Project
SPECIFICATION NO.
BIDDER PRE-QUALIFICATION QUESTIONNAIRE
Page 14
PROJECT DATA SHEET
PROJECT #3
1. Project Name:
2. Project Location
3. Owner Information
Name:
Address:
Contact Person for
Experience Verification:
Phone Number for
Contact Person:
4. Contract Role:
Prime Co
If sub-contractor,
Company Name:
Contact P
Contact Phov~%,,,,.
5.
Project Attributes: Check th
~
!
applicable boxes. ,
nts
points
points
1
0 Points
j~%
; j /
0~~ 000
$200,000
a.
j
Contract Price
/
%
❑
❑
❑
to
❑ < $200,000
~
< $500,000
< $300,000
b.
Amount oftheactive const - n /
within f the
j~~~~~j/
1 Acre
0
5 Acre
Denn of M me or
R
W
i
I
~
/ /
❑ j
❑
to
❑
.
To
❑ < 0.5 Acre
e
ater Qual
ty
Boar
%
~
<2 Acres
1 Acre
juris
c.
Amount°, ctive removal o j-
native and i e vegetation u
/i . ~j
1:1 >_3 Acres
❑
2 Acres
To
❑
1 Acres
To
❑ < 1 Acre
combination
h e application
hand removal.
<3 Acres
<2 Acres
d.
Amount of native pla . ~
allati
2 Acres
1 Acres
~
establishment using a co{ i f
❑ 2:3 Acres
❑
To
❑
To
❑ < 1 Acre
seeding and containerized
<3 Acres
<2 Acres
e.
Amount of trails constructed of
stabilized aggregate not including
❑ >_1,500 LF
❑
1,000 LF to
❑
500 LF to
❑ <500 LF
asphaltic concrete or concrete paving.
<1,500 LF
<1,000 LF
f.
Amount of stabilized streambank or
stabilized erosive area using
0.5 Acre
0.25 Acre
bioengineered (live) or engineered
❑ >_1 Acres
❑
To
❑
To
❑ < 0.25 Acre
(conventional) erosion control
<1 Acres
<0.5 Acres
techniques.
Project owner will be contacted to verify information.
Sub-
contractor
~0
and contact informal6r the general contractor below:
Riverside Park Phase One
Trails and Revegetation Project BIDDER PRE-QUALIFICATION QUESTIONNAIRE
SPECIFICATION NO. Page 15
PROJECT DATA SHEET
PROJECT #3
THIS PAGE PURPOSELY LEFT BLANK
Riverside Park Phase One
Trails and Revegetation Project
SPECIFICATION NO.
BIDDER PRE-QUALIFICATION QUESTIONNAIRE
Page 16
PRE-QUALIFICATION DECLARATION
(Printed Name)
of
, hereby declare that I am the
(Title)
(Name of Fi
and certify and declare that I have read all the foregoing a
know their contents. The matters stated in the questionn
own knowledge and belief, except as to those matters stai
matters I believe them to be true. I declare under p
that the foregoing is correct and that this declara
County/State, on 2011.
Dated:
Riverside Park Phase One
Trails and Revegetation Project
SPECIFICATION NO.
ns j is pre-qualification questionnaire and
a and all attachments are true of my
in tion and belief, and as to those
i
perjury he laws of the State of California,
executed inl/a
BIDDER PRE-QUALIFICATION QUESTIONNAIRE
Page 17
Exhibit B
UNIFORM RATING SYSTEM AND PROCEDURES
FOR THE RIVERSIDE PARK PHASE ONE
TRAILS AND REVEGETATION PROJECT
The prequalification questionnaires for Riverside Park Phase One Trails and Revegetation Project will be reviewed and
scored by the City Manager or his designee. Part I of the Questionnaire contains "yes/no" type questions on essential
requirements for qualifications. See the questionnaire for information on how those questions are handled. The
balance of the questionnaire has a mix of purely informational and scorable tions. Not all questions in the
questionnaire are scorable; some questions simply ask for information abo ontractor firm's structure, officers
and history. The points for each scorable question is indicated in the o, „ aire.
The following table outlines the parts of the questionnaire with
minimum points required in each part to qualify to bid on this]
the total points possible, and the
Total
F
e/
Minimum Score
Possibl
////jam,,,.
Required to Qualify
Part II.B.
History of the business and organizational perf ce;
~
j 71
53
~
Part II.C.
Compliance with occupational / /nd health law15
'
11
workers
compensation and oth islation
Part III.A
General Project Experience '
25
15
Part 111.13
Specific Project Exp ri nce and Refer . '
s %~~j/////
nll
18
Part III.C
/Mew ,k" '
n
Comparable ' t
per project
6 per project
2 projects the
eet
um poi n n i
Riverside Park Phase One
Trails and Revegetation Project
SPECIFICATION NO.
Exhibit B
UNIFORM RATING SYSTEM AND PROCEDURES
Page 1
Exhibit C
COMPARABLE PROJECT VERIFICATION QUESTIONS AND PROCEDURES
RIVERSIDE PARK PHASE ONE
TRAILS AND REVEGETATION PROJECT
The following questions will be used to verify the information provided on the Project Data Sheets for the
comparable projects and to gain feedback on the contractor's performance. The City of Ukiah will
conduct the interviews. No action on the contractor's part is necessary.
The project owner's contact person indicated on the Project Data Sheet will be the first individual
contacted regarding the interview questions. If that person indicates t at there are other individuals
more knowledgeable about the project the other individuals will be ted as required to, complete
the questionnaire. If the contractor was a sub-contractor on the the prime contractor under
which they worked may be contacted to complete the intervie
Contractor's Company Name:
Name of Comparable Project:
Individuals Interviewed:
Name cy/Company
„ ////j~~/////ijjj
Phone Nu~
Date of
Interview
7 °~i
INTERVIEW QUESTIO , F/0
/
1 Point
0 Points
.
(Minimum Score for thin of t
estionnair
e , points)
ii ioii
1. Was t actor the a sub-c , Fctor on the project?
❑ Yes
❑ No
2. All e scope o ect ir( the folio components?
from Project D et su ~~'~d by the conctor for this project)
Yes
El
❑ No
in an acceptable schedule?
3. Did t tractor comple . proje n
e
r '
'll-
Note:
he contracto
and updated schedules the
e
kial
answer to estion can b ; if in your judgment you feel that the delays
Yes
❑
❑
No
were reasona fied and ignificantly detrimental to the project or
the Owner's oper jj
4. Was the contractor gen . _ prompt in dealing with administrative tasks
such as submittals, schedule updates, proposals for extra work?
❑ Yes
❑ No
5. Did the contractor generally provide adequate personnel?
❑ Yes
❑ No
6. Did the contractor generally provide adequate supervision?
❑ Yes
❑ No
7. Did the contractor generally provide adequate equipment?.
❑ Yes
❑ No
8. Was your agency/company generally satisfied with the quality of work?
❑ Yes
❑ No
Exhibit C
RIVERSIDE PARK PHASE ONE
TRAILS AND REVEGETATION PROJECT RRM
Specification No.
COMPARABLE PROJECT VERIFICATION
QUESTIONS AND PROCEDURES
Page 1
City of czrk h
Attachment #
ITEM NO.. 10c
MEETING DATE:
AGENDA SUMMARY REPORT
January 5, 2011
SUBJECT: STATUS REPORT AND CONSIDERATION OF PREQUALIFICATION PROCESS FOR
RIVERSIDE PARK DEVELOPMENT PROJECT FUNDED BY CALIFORNIA
RESOURCES AGENCY RIVER PARKWAYS GRANT
Summary: The City of Ukiah Community Services Department is managing the Riverside Park
Development Project funded by the California Resources Agency River Parkways Grant program. At
the City Council meeting on April 21, 2010 and the meeting on June 2, 2010, staff provided Council with
information on a prequalification process. This Agenda Summary Report is follow-up on the park project
and continued analysis on a potential prequalification process.
Background: In June of 2008, the California Resources Agency announced their River Parkways Grant
Program Awards to 31 cities in the state of California with the City of Ukiah receiving an award for
$810,000 for Riverside Park. Riverside Park is located at the east end of Gobbi Street. The grant project
area or "Phase 1" includes improvements to the entry area, construction of the main trail, one river
access trail and one loop trail. The improvements will meet the River Parkways criteria for restoration of
the riparian habitat by removing invasive vegetation and replanting native species. Phase 1 will include
approximately 2,500 linear feet of trail and 1,200 linear feet of river bank riparian restoration.
The City has contracted with RRM Design Group, Warren McClung, ASLA and Ann Baker Landscape
Architecture for design and engineering services. Due to certain existing site conditions together with
very specific timing issues related to work within the river bank and revegetation, staff together with the
designers determined it would be best to implement the project in two steps under two separate
construction contracts. The first step was a short contract to remove debris in the area around the
existing service road on the upper bank and establish rough grade in this area. The Rough Grading
work was conducted by a competitive bid process with no prequalification element. This work was
awarded September 1, 2010 and is still in progress.
Recommended Action(s): Receive status report.
Alternative Council Option(s): N/A
Citizens advised: North Coast Builders Exchange, Paths, Opens Space, Creeks Commission, Park,
Recreation and Golf Commission
Requested by: N/A
Prepared by: Katie Merz, Community Services Administrator
Coordinated with: Jane Chambers, City Manager, David Rapport, City Attorney, Mary Horger,
Purchasing Supervisor
Attachments: 1. Draft Prequalification Packet for City of Ukiah Riverside Park Project
2. Draft Uniform Rating System & Comparable Project Verification
3. Prequalification State Legislation
4. Public Contract Code Section 20100-20103.6
Approved:
Jane Chambers, City Manager
Following completion of the Rough Grading work the topographic survey will be updated and the
construction documents and bid documents for the Trail and Revegetation Project will be finalized. The
phased approach has allowed the site to be fully ready for the Trail and Revegetation Project, invasive
plant eradication and revegetation, which needs to begin this spring (2011) when conditions are best for
that work.
Discussion: Because the Trail and Revegetation Project requires certain specialty construction
processes staff has investigated a prequalification process to assist in the selection of the lowest
responsible bidder. These specialties relate primarily to the revegetation process and construction within
the main channel of the river. With regard to revegetation, the grant funding contract specifies that the
project must have 80% success rate in the revegetation. Therefore the success rate of the invasive plant
removal as well as the new plant growth is a very significant concern. Likewise, construction within the
main channel of the river will be subject to close regulatory scrutiny. Staff feels that for this project to be
successful it is important that the contractor has specific experience in this type of work.
For example, the current Rough Grading work that is underway at Riverside Park has experienced
difficulty with plant growth.. The specifications for the Rough Grading work include hydroseeding. The
current vendor claims he completed the seeding work as specified, however the growth has not been
successful in all areas. For the past two months staff and the contractor have been monitoring the
growth of the seed which can take up to six weeks. After further inspection, it was determined that the
application of the seed did not meet the coverage requirements as detailed in the specifications. Now we
have reached the winter months where it is unlikely that the seed can germinate. Per the specification
the City is retaining the contractor until the successful seed germination has been met. This means that
the contractor will be responsible to apply another application of hydroseeding during an appropriate
weather window such as the spring months. This has adversely affected the project schedule and will
impact the manner in which future work is conducted.
The next and final section of work for Riverside Park Phase One is the Trail and Revegetation Project.
Some of the key elements include the installation of boulders within the river bank to support the river
access trail as well as the compaction and installation of boulders at the terrace area and loop trail. The
largest section of work is the removal of invasive species which will be eradicated with a number of
measures. Likewise, the contractor will also install plants with seeding measures and container plants.
This project and the construction that is performed is governed and supervised by the permitting
agencies which are Department of Water Quality and Fish and Game. The engineers estimate for this
project is $600,000 and it is anticipated that the work will take 12-18 months. Due to the sensitive nature
of the planned work in combination with the current complication regarding hydroseeding at the location,
staff has continued to investigate a prequalification process.
In 1999, the California State Legislature enacted a law that allows many public agencies to require
licensed contractors that wish to bid for public works jobs to "pre-qualify" for the right to bid on a specific
public works project, or on public works project undertaken by a public agency during a specified period
of time. In establishing prequalification requirements, the California legislature found "that the
establishment by public agencies of a uniform system to evaluate the ability, competency, and integrity of
bidders on public works projects is in the public interest, will result in the construction of public works
projects of the highest quality for the lowest costs, and is in furtherance of the objectives." Public
Contract Code section 20101 was enacted as part of Assembly Bill 574. This law applies to all cities,
counties and special districts. This code section allows a public entity to require that each prospective
bidder for a contract complete and submit to the entity a standardized questionnaire in a form specified
by the entity, including a complete statement of the prospective bidder's experience in performing public
works.
Staff has included a series of attachments which provide a draft prequalification questionnaire and also
explain the state legislation. Generally the process includes a questionnaire that addresses the
prospective bidders' basic financial stability, addresses the prospective bidders' company history and
past performance, and addresses project-specific experience. Staff will score the questionnaires from
each prospective bidder using a uniform scoring system. The uniform scoring system is adopted as part
of the prequalification process. A prospective bidder must meet certain minimum scores within each
section to be prequalified to bid on the project.
Attachment 1 is the draft prequalification packet that includes the draft questionnaire with scoring criteria.
This document includes only the information that is most relevant and applicable for the Trail &
Revegetation Project. Staff utilized the questionnaire model form created by the State Department of
Industrial Relations pursuant to Section 20101 of the Public Contract Code. Staff revised the
questionnaire to reduce the length of the questions as they are shown in the State Dept model form.
Staff also reduced the requirement for additional attachments. For example, the State model requires a
notarized statement from the contractor surety company. Staff felt that asking the contractor to provide
additional documents, such as this, was not to the benefit of the City or to the contractor. The draft
packet has been reviewed by the City Attorney.
If a prequalification process is utilized for bidding the Riverside Trails and Revegetation Project, the City
Council would adopt a resolution as such. The resolution would adopt the prequalification packet and the
associated documents and procedures. Staff would suggest that the City conduct the prequalification
process concurrently with the project bidding process. Therefore the overall process would take
approximately 60 days. The City would make all information available to prospective bidders; this would
include advertising the project plans, specifications and prequalification process. The prospective bidders
would have 2 weeks to submit their prequalification questionnaire. The City would then score the
questionnaires which must be conducted 10 days after the receipt of the questionnaire. Qualified
contractors would be notified and then have approximately 30 days to submit their bids before bid opening.
Likewise contractors who may not initially meet the minimum score of prequalification have the opportunity
to appeal the determination. The appeal procedures are outlined in the prequalification procedures which
allows adequate time to conduct the appeal or hearing process and, if deemed qualified, the contractor
would still have adequate time to submit their bid by the bid opening date.
The overall goal of the prequalification process is to award the project to the lowest responsible bidder. The
draft documents were designed to be inclusive and user-friendly so that the City may receive numerous
competitive bids from a variety of contractors. The project will be conducted by a contractor with an A
license. Staff feels confident that there are numerous local and regional contractors who meet the licensing
requirement and criteria described in the prequalification. The prequalification process is not designed to
exclude bidders. It is designed to ensure that the work is performed to the highest quality with the lowest
cost.
During the discussion of prequalification at the April 21, 2010 City Council meeting, a number of questions
were raised including how the North Coast Builders Exchange could comment on this process. Staff has
sent a letter with the draft prequalification packet to the Builders Exchange inviting their input. Staff feels
that it is important to have this information included as a Council agenda item for discussion prior to
including any recommended action. This allows the public to be introduced to the information and allows
time for Council to hear public comment and provide further direction to staff. Staff will return to Council on
January 19 with further work on this item.
Fiscal Impact:
Budgeted FY 10/11 F-1 New Appropriation Not Applicable Budget Amendment Required
H
City c~J' C (ia.Fi.
ITEM NO.: loc
MEETING DATE: January 19, 2011
AGENDA SUMMARY REPORT
SUBJECT: RESCIND AWARD OF CONTRACT FOR PERKINS STREET AND ORCHARD
AVENUE INTERSECTION IMPROVEMENTS, SPECIFICATION NO. 09-14 AND DIRECT
STAFF TO RETURN THE ORIGINAL BONDS TO NORTH BAY CONSTRUCTION, INC.
Background: This project was funded in the FY 2009-2010 budget adopted by the City Council.
Discussion: The City Council awarded the contract for this project on October 21, 2009 to North Bay
Construction Company, Inc. of Petaluma, California (contractor) in the amount of $186,729. 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. Construction of the project has not begun due to the aforementioned issues. On August 18,
2010 the City Council adopted a resolution to initiate the relinquishment process with Caltrans for a portion
of Perkins Street right of way. Upon completion of the relinquishment, Caltrans will be in a position to issue
the City an encroachment permit for this project. To date, the City has been unsuccessful in obtaining the
necessary right of way from the property owner at the northeast corner of Perkins Street and Orchard
Avenue. Staff is in the process of reviewing proposals from professional right of way agents to assist the
City in obtaining the necessary right of way. To further complicate the matter, in the summer of 2010 Ghilotti
Construction Company of Santa Rosa, California acquired North Bay Construction, Inc. through an asset
sale. As a result of this sale, Steve Geney, President of North Bay Construction, Inc. contacted staff and
requested that the City relinquish its contract with North Bay Construction for this project. Please refer to
Attachment 1, email correspondence from Steve Geney. Staff concurs with this request and recommends
that the City Council rescind the contract with North Bay Construction, Inc. and return the original bonds to
North Bay Construction, Inc. Once the right of way issue is resolved and the City obtains the required
encroachment permit from Caltrans, the project will be re-advertised for bids.
Fiscal Impact:
HBudgeted FY 10/11 New Appropriation I I Not Applicable Budget Amendment Required
Amount Budgeted Source of Funds (title and Account Number Addtl. Appropriation Requested
Recommended Action(s): 1. Rescind award of contract for Perkins Street and Orchard Avenue
Intersection Improvements, Specification No. 09-14 and direct staff to return the original bonds to North
Bay Construction, Inc.
Alternative Council Option(s): N/A
Citizens advised: Steve Geney, North Bay Construction, Inc.
Requested by: Tim Eriksen, Director of Public Works / City Enginee
Prepared by: Rick Seanor, Deputy Director of Public Works - Engi a Ing & Streets
Coordinated with: Jane Chambers, City Manager
Attachments: 1. email correspondence from Steve Geney, North Bay Construction, Inc.
Approved:
Jll~( Chambers, City Manager
Rick Seanor Attachment # I
From: Steve Geney [SGeney@nbcinc.net]
Sent: Thursday, December 23, 2010 10:28 AM
To: Rick Seanor
Subject: FW: Perkins & Orchard Intersection Improvements
From: Steve Geney
Sent: Thursday, December 23, 2010 9:12 AM
To: 'R]Seanor@cityofukiah.com'
Subject: Perkins & Orchard Intersection Improvements
Rick, this email is to further confirm the phone conversations we have had regarding the above subject project. North Bay
Construction is willing to relinquish its contract with the City of Ukiah. The only caveat we have is that the City return the
original contract bonds to NBC upon the cancelation of this contract or if the City needs to retain these bonds NBC
receives payment for the bond fees.
Thank you for your assistance in closing this contract out with us and if you have any questions or need any additional
information from us please feel free to contact me at 707-781-3505.
Steve Geney
President
city of Vk aFa
ITEM NO.:
MEETING DATE.
10d
January 19, 2010
UKIAH CITY COUNCIL & UKIAH REDEVELOPMENT AGENCY
AGENDA SUMMARY REPORT
SUBJECT: DISCUSSION AND POSSIBLE ACTION TO APPROVE AN EXCLUSIVE NEGOTIATING
AGREEMENT WITH COSTCO WHOLESALE CORPORATION AND AUTHORIZE THE
CITY MANAGER/EXECUTIVE DIRECTOR TO EXECUTE THE AGREEMENT AND A
SUBSEQUENT NEGOTIATED REIMBURESEMENT AGREEMENT.
Discussion: On May 19, 2010, the Ukiah City Council and the Ukiah Redevelopment Agency approved a
Letter of Intent with Costco Wholesale Corporation for the proposed purchase of approximately 15.33 acres
assembled by the Ukiah Redevelopment Agency within the Redwood Business Park. Costco's intent is to
construct and operate a wholesale and retail general merchandise facility on the property. The Letter of
Intent is included as Attachment #1 for reference.
With the negotiations moving forward, the City/Agency and Costco are ready to replace the Letter of Intent
with an Exclusive Negotiating Agreement (ENA). The draft ENA is included as Attachment #2 for review
and consideration. The ENA has been developed with the cooperation of the City Attorney and Costco
Counsel.
In summary, the ENA establishes a period during which Costco will have the exclusive right to negotiate
with the Agency the terms of a Disposition and Development Agreement (DDA) for the sale of the property
and Costco will negotiate exclusively with the City and the Agency for the location of a Costco store in
Mendocino County. Similar to the Letter of Intent, the further purpose of the ENA is to establish procedures
and standards for the negotiation of the DDA and the process for governmental review of the project for the
necessary permits and other approvals. The ENA in itself does not grant Costco the right to develop.
Continued on Paae 2
Recommended Action(s): Approve an Exclusive Negotiating Agreement with Costco Wholesale
Corporation and authorize the City Manager/Executive Director to execute the agreement and a
subsequently negotiated reimbursement agreement, provided the reimbursement agreement does not
require the expenditure of redevelopment funds.
Alternative Council Option(s): Do not approve the Exclusive Negotiating Agreement and provide
further direction to staff.
Citizens advised: N/A
Requested by: N/A
Prepared by: Sage Sangiacomo, Assistant City Manager and Guy Mills, Project and Grant
Administrator
Coordinated with: Jane Chambers, City Manager/Executive Director and David J. Rapport, City
Attorney/Redevelopment Agency General Counsel
Attachments: 1. Costco Letter of Intent
2. Draft Exclusive Negotiating Agreement with Costco
Approved.
/
Ja Chambers, City Manager/ Agency Executive Director
By February 1, 2011, the agreement specifies that Costco will submit concept drawings for the project
including a development proposal, scope, schedule, and site plan. Within 30 days after the effective date of
the agreement, Costco will submit formal Entitlement Applications.
The ENA carries forward other provisions of the original Letter of Intent including the purchase price of the
property and commissions. The purchase price is specified at $3.50 per square foot for approximately
15.33 acres for a total of $2,337,211.80. The per square foot price is the amount the Agency originally paid
for the property. The total commission payable by the Agency in connection with the transaction for
comprehensive real estate advisory services is approximately $370,132.
Within 60 days of the effective date of the ENA, the parties must negotiate a reimbursement agreement
pursuant to which any costs, fees and charges associated with compliance with CEQA requirements shall
be paid. Within 90 days of the effective date of the ENA, Costco is required to provide a draft DDA to the
Agency and the City. In the ENA, the parties agree to some of the provisions that will be included in the
DDA, including the deposit by Costco of earnest money of $50,000 with the specified Title Company and
how closing costs will be paid.
Unlike the Letter of Intent, the ENA does not contain a provision for an economic incentive package to
Costco for locating in the City.
Separate from the Costco project, the City/Agency continues to develop the specifications and plans for
public infrastructure in and around the Redwood Business Park. These projects are intended to mitigate
traffic issues and ensure the proper supply of utility services as the Business Park continues to develop
towards build-out.
Staff recommends approval of the ENA with Costco and authorization for the City Manager/Executive
Director to execute the document and a subsequently negotiated reimbursement agreement with Costco,
provided the reimbursement agreement does not require the expenditure of redevelopment funds.
Fiscal Impact:
F-1 Budgeted FY 10/11 1-1 New Appropriation ❑X Not Applicable Budget Amendment Required
ATTACHMENT -L
AMMIL COSTCO.
IMMES"E
Writers Direct No.: 425-427-3972
Writers Fax No.: 425-313-8114
Writer's email: skatzncostco.com
May 12, 2010 RECEIVED
CITY OF U IAH
VIA EMAIL (Xhambers(i~CityofUkiah.com) MAY 1 8 2010
AND U.S. MAIL ~Q__
CITY CLERK DEPARTMENT
Ukiah Redevelopment Agency
300 Seminary Avenue
Ukiah, California 95482
Attn: Jane Chambers - Executive Director
Re: Approximately 15.33 acres located along Airport Park Boulevard, Ukiah,
California
Dear Ms. Chambers:
Costco Wholesale Corporation, a Washington corporation, or its assignee ("Purchaser")
proposes to purchase from the Ukiah Redevelopment Agency ("Seller") the real property consisting
of approximately 15.33 acres, together with all rights appurtenant thereto, located at Airport Park
Boulevard in Ukiah, California (the "Property"), on the terms and conditions set forth in this letter of
intent (the "Letter of Intent"). A sketch of the Property is attached hereto as Exhibit A. Purchaser
intends to construct and operate a membership warehouse club, vehicle fueling facility and
associated parking (the "Project") on the Property..
1. PURCHASE PRICE. The purchase price for the Property shall be Three and 501100
Dollars ($3.50) per square foot of Property, net of any area that is not available for Purchaser's
exclusive use as building, fueling facility, parking lot improvements, including, without limitation,
lighting, drive aisles, cart corrals, curb, gutters, and sidewalks, and related landscaping. It is
estimated that the Property contains approximately 15.33 acres of land (assuming that all ofthe land
will be usable) and that the purchase price shall be approximately Two Million Three Hundred
Thirty-Seven Thousand Two Hundred Eleven Dollars and 80/100 Dollars ($2,337,211.80) (the
"Purchase Price"). The exact area of the Property and the total Purchase Price shall be determined
prior to the Closing by the survey to be obtained in accordance with Section 3(a) of this Letter of
Intent. The Purchase Price shall be payable at the Closing in immediately available funds.
2. EARNEST MONEY. Within ten (10) business days following the full execution and
delivery of a Disposition and Development Agreement (the "DDA") for the transaction set forth in
this Letter of Intent (the "Effective Date of the Purchase Agreement'), Purchaser will deposit earnest
money of Fifty Thousand and No/100 Dollars ($50,000.00) (the "Deposit") with a title company
selected by Purchaser ("Title Company"). Title Company will place the Deposit in an
interest-bearing account with interest to accrue to Purchaser's benefit. If the transaction closes, the
Deposit shall be credited against the Purchase Price. If the transaction does not close for any reason
Ukiah Redevelopment Agency
May 12, 2010
Page 2
other than default by Purchaser, then the Deposit shall be returned to Purchaser. In the event of
Purchaser's default under the DDA, Seller shall have as its sole remedy the right to terminate the
DDA and retain the Deposit as liquidated damages. The DDA must contain the provisions required
by the California Community Redevelopment Law ("CRL"), and follow the procedures set forth in
the CRL for approval of such an agreement.
3. CONTINGENCIES. Purchaser's obligation to purchase the Property will be subject
to the following contingencies being satisfied or, in Purchaser's sole and absolute discretion, waived
on or before the dates provided for in this Letter of Intent. If the contingencies are not satisfied or
waived, in either case in Purchaser's sole discretion, by the applicable dates, the Deposit, with
interest, shall be refunded to Purchaser and the DDA shall terminate.
(a) . TITLE AND SURVEY. Purchaser shall have until 5:00 p.m. local time in the
jurisdiction in which the Property is located (the "Governing Jurisdiction') on the date that is 90 days
after the Effective Date of the DDA (the "Feasibility Period") to approve a current title insurance
commitment covering the Property and a current ALTA survey of the Property, each to be obtained
by Purchaser, at Purchaser's cost. Within ten days after Seller's acceptance of this Letter of Intent,
Seller shall furnish to Purchaser copies of the most recent title insurance policy (or commitment) and
survey pertaining to the Property in Seller's possession.
(b) FEASIBILITY AND STUDIES. Purchaser shall have until the end of the
Feasibility Period to conduct inspections and studies of the Property and to evaluate the Property and
the transaction that is the subject of this Letter of Intent. Within ten days after Seller's acceptance of
this Letter of Intent, Seller shall furnish to Purchaser (i) the legal description of the Property, or of
the larger parcel(s) that include(s) the Property, and (ii) copies of any studies, reports or surveys in
Seller's possession or under Seller's control, including, without limitation, those identified on the
Property Questionnaire attached hereto as Exhibit B. Purchaser shall have the right, in its sole and
absolute discretion, to extend the Feasibility Period and Purchaser's related termination right for
three (3) additional periods of 60 days each in the event Purchaser determines that additional levels
of studies are required or desirable.
(c) RESTRICTIVE COVENANT. By the end of the Feasibility Period,
Purchaser and Seller shall have agreed upon the form and substance of a exclusive use covenant in
favor of Purchaser in the form set forth in Exhibit C hereto.
(d) APPROVALS AND PERMITS. Purchaser (except as otherwise specifically
provided herein) shall have until 5:00 p.m. local time in the Governing Jurisdiction on the date that is
360 days after the Effective Date of the DDA, subject to extension as provided herein (the
"Approvals Period") to obtain issuance of all zoning approvals, site plan approvals, subdivision
approvals (to be obtained by Seller at Seller's sole cost), environmental approvals, building permits,
use permits and any other governmental approvals and permits necessary for Purchaser to develop,
construct and operate its Project on the Property (the "Project Approvals"), all of which shall be in
Ukiah Redevelopment Agency
May 12, 2010
Page 3
final and unappealable form. The timing, conditions and cost of the Project Approvals (including
any mitigation fees) must be satisfactory to Purchaser, in its sole discretion. Purchaser shall obtain
the Project Approvals at its sole cost and expense and shall pay all fees relating thereto. If Purchaser
has not obtained the approvals described in this Section 3(d) by the deadline set forth above, then
Purchaser shall have the right, on or before such date (or the extended deadline, if applicable), to
extend such date for up to three (3) additional periods of sixty (60) days each by notifying Seller in
writing of Purchaser's desire to extend such date.
(e) ECONOMIC INCENTIVE PACKAGE. Purchaser shall have until the end of
the Feasibility Period to reach agreement on economic incentive package to be negotiated between
The City of Ukiah (the "City"), Seller, and Purchaser, including the amount of the package and the
material terms of an agreement to provide the incentives. During the Feasibility Period and in the
course of negotiating the economic incentive package Purchaser, Seller, and City will engage in due
diligence investigations and shall provide relevant information to each other in aid of those
investigations. Information provided to City and/or Seller by Purchaser shall be treated by City
and/or Seller, as applicable, as proprietary and confidential information ("Confidential Information").
Except as required by law, including the California Public Records Act (PRA), neither City nor
Seller will disclose the Confidential Information it receives from Purchaser to anyone other than such
party's employees, agents, representatives, counsel, and/or officials who are engaged in the due
diligence process described above. Each person to whom such Confidential Information is disclosed
will be advised of its confidential nature and must agree to maintain the confidentiality of the
information.
4. SUBDIVISION. Prior to Closing, Seller shall, at Seller's sole cost and expense,
cause the Property to become a separate legal lot consisting of a size and configuration approved by
Purchaser and allowing for the transfer of the Property at Closing in compliance with all applicable
subdivision laws. Any conditions or obligations imposed on either the Property or Purchaser by
reason of said subdivision shall be subject to the prior approval of Purchaser.
5. CLOSING. The closing of the transaction set forth in this Letter of Intent (the
"Closing") shall occur at the office of Title Company on a date selected by Purchaser that is within
30 days after Purchaser has waived the last of the contingencies set forth in Section 3 hereof. At the
Closing, Seller will provide Purchaser with a grant deed to the Property subject only to exceptions
approved by Purchaser. Seller shall cause all deeds of trust, mortgages, assessments and liens
encumbering the Property (except for the current year's ad valorem real property taxes) to be paid
and satisfied at the Closing. At Closing, Seller shall deliver full, sole, vacant and exclusive
possession of the Property to Purchaser, subject to no tenancies, leasehold interests, or other similar
interests.
6. CLOSING COSTS AND PRORATIONS. Seller will pay the following costs in
connection with the Closing: all real estate excise or recording, conveyance, transfer, documentary
Ukiah Redevelopment Agency
May 12, 2010
Page 4
stamp or similar taxes or fees imposed in connection with the conveyance of the Property, the costs
of a CLTA standard owners title insurance policy, and one half (1/2) of Title Company's escrow fee.
Purchaser will pay the following costs in connection with the Closing: any additional premium for an
ALTA title insurance policy, including the costs of any survey or any endorsements requested by
Purchaser, and one-half (1 /2) of Title Company's escrow fee. Property taxes for the year in which the
Closing occurs will be prorated as of the date of the Closing. Each party shall pay its own legal and
other consultants' fees incurred in connection with the transaction set forth in this Letter of Intent.
7. BROKER'S FEE. The total commission payable in connection with the transaction
set forth in this Letter of Intent is Three Hundred Thousand and No/100 Dollars ($300,000.00)
payable by Seller at the Closing in equal shares to NWAP II, Inc. and Collier's International (Jason
Gallelli) and 3% of the Purchase Price payable by Seller at Closing to Realty World Seltzer Realty.
Purchaser and Seller each represent to the other that it has engaged no other broker in connection
with the transaction set forth in this Letter of Intent to whom a commission is or would be payable.
8. REPRESENTATIONS AND WARRANTIES. Each person signing this Letter of
Intent on behalf of Purchaser and Seller represents he or she has been duly authorized to do so.
Seller shall make usual and customary representations and warranties to Purchaser, which shall be
set forth in the DDA.
9. DISPOSITION AND DEVELOPMENT AGREEMENT. Upon Seller's acceptance of
this Letter of Intent, Purchaser and Seller shall proceed to negotiate and prepare the DDA for this
transaction. The DDA shall contain the terms set forth in this Letter of Intent and other terms and
provisions customarily contained in DDAs.
10. NO NEGOTIATION WITH THIRD PARTY. Seller shall not negotiate with nor
commit to sell, lease or otherwise transfer the Property or any portion thereof to any other parry as
long as Purchaser is proceeding in good faith to negotiate the terms of the DDA; not to exceed a
period of 45 days from the full execution of this Letter of Intent.
11. SELLER'S UNRESTRICTED RIGHT TO SELL. Seller represents and warrants to
Purchaser that no understanding, agreement (either express or implied) or reasonable expectancy of
agreement with respect to the sale, lease or other transfer of the Property exists between Seller and
any party other than Purchaser as of the date Seller accepts this Letter of Intent. Seller further
represents and warrants that Seller is not restricted from negotiating with Purchaser for the purchase
of the Property. Seller further acknowledges that Purchaser's interest in the Property and willingness
to enter into this Letter of Intent is conditioned on Seller's foregoing representations and warranties.
Seller agrees to defend, indemnify and hold Purchaser harmless from and against any claim arising
from a breach of the foregoing.
12. QUESTIONNAIRE. Attached to this Letter of Intent as Exhibit B is a questionnaire
regarding the Property (the "Property Questionnaire") that Seller shall complete for Purchaser's
Ukiah Redevelopment Agency
May 12, 2010
Page 5
information and submit to Purchaser within 15 days after the date all parties have signed this Letter
of Intent. Seller will use its best efforts to provide all of the information requested by the
Questionnaire.
13. RIGHT TO ENTER PROPERTY. Seller grants permission to Purchaser and those
persons designated by Purchaser to have access to the Property during the Feasibility Period for the
purpose of conducting surveys, structural measurements, soil and environmental tests, architectural
and engineering studies, and/or any other investigations related to determining the feasibility of the
Property for Purchaser's purposes. As consideration for Seller's permission to enter upon the
Property as described above, Purchaser agrees to restore the Property to substantially the same
condition as existed prior to such entry and to indemnify and hold Seller harmless from and against
any and all liability for claims of whatever nature arising out of the entry onto the Property by any
agent, employee, associate, independent contractor, or anyone else entering at the request, direction
or invitation of Purchaser, provided, however, that (i) this indemnity shall not apply to the extent
such liability arises in connection with the negligence or willful misconduct of Seller, and
(ii) Purchaser shall have no liability to Seller or to any other person or entity by reason of, nor shall
Purchaser have any duty to indemnify, defend or hold any person or entity harmless from or against,
any claim, demand, damage, loss, action, liability, cause of action or judgment, including, without
limitation, any claim for diminution in value of the Property or for environmental remediation or
clean-up costs, arising out of or in connection with the mere fact of having discovered and/or
reported (as may be required by law) any adverse physical condition, title condition, or other defect
with respect to the Property.
This Letter of Intent is not to be deemed an offer and, except for Sections 10, and 13,
which shall be binding upon Seller, this Letter of Intent is not binding upon Purchaser or Seller. This
Letter of Intent is, however, an expression of our mutual intent to conduct serious negotiations that
could result in a binding DDA. With the exception of Sections 10, 11, 12, and 13, which are
binding on Seller, neither party will be bound until Purchaser and Seller execute a final DDA.
If Seller has not executed and delivered this Letter of Intent without change by 5:00 p.m.
local time in the Governing Jurisdiction on June 18, 2010, this Letter of Intent shall expire.
If the foregoing is acceptable, please arrange for Seller to sign a copy of this Letter of Intent
in the space provided below and return an executed copy to me no later than June 18, 2010. We look
forward to your response.
i
Ukiah Redevelopment Agency
May 12, 2010
Page 6
This letter may be executed and delivered by facsimile or other electronic transmission, and
in more than one counterpart, each of which shall be deemed an original, and all of which together
shall constitute one and the same instrument.
Sincerely,
COSTCO WHOLESALE CORPORATION
r'
Seth S. Katz
Corporate Counse
Exhibits
cc: Melissa McCarthy
David Babcock
ACCEPTED AND AGREED TO this 19 day of may , 20 10,
UKIAH REDEVELOPMENT AGENCY
N "'N~
By " = ~
Name Ben j Thomas
Title Chairperson
THE CITY OF UKIAH
By Q Name Ben j Thomas
Title Mayor
EXHIBIT A
THE PROPERTY
[See the one page following this page.]
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EXHIBIT B
PROPERTY QUESTIONNAIRE
Please answer the following questions to the best of your knowledge and belief:
1. Are there any wetlands on the site? If so, have they been located? Please specify.
2. Is the site located within a flood plain? Has flooding occurred on this site?
3 Have any environmental reports been prepared for this site? Please specify.
4. Are there any environmentally hazardous materials on or adjacent to the site? Have any
cleanup actions or environmental claims been threatened or asserted involving the site?
Please specify.
5. Have any geotechnical reports that have been prepared for this site? Please specify.
6. Are there any easements (other than utility easements) or encroachments that impact the site?
Please specify.
7. Are there any deed restrictions or restrictive covenants that impact the site? Please specify.
8. Are there any building or use moratoria in place that would impact the site? Please specify.
9. Are there any unique planning or zoning issues that would impact the, site? Please specify.
10. Have you received notice of any actual or proposed condemnation proceedings, special
improvement tax proceedings, or other legal or governmental proceedings that may affect the
site? Please specify.
11. What utilities serve the site and have you experienced any service problems? Please specify.
12. Have any traffic studies been prepared for this site? Please specify.
13. Are there any lease or use agreements (written or oral) in effect that grants any party the right
to use or occupy any portion of the site? Please specify.
EXHIBIT C
PURCHASER'S EXCLUSIVE USE PROVISION
Neither Seller, nor any subsidiary, affiliate, parent or other entity that controls, is controlled by,
or is under common control with Seller (collectively "Seller's Entities") shall, directly or indirectly, with
respect to all or any portion of any property currently or in the future owned by Seller or any of Seller's
Entities within ten (10) miles in any direction from the exterior boundaries of the Property (the
"Restricted Property" (i) sell, lease or otherwise transfer all or any portion of the Restricted Property
to, or for use as, a wholesale or retail general merchandise facility that has a merchandising concept
based upon a relatively limited number of stock keeping units in a large number of product categories
(the "_Merchandising Concept"), (ii) sell, lease or otherwise transfer all or any portion of the Restricted
Property for use as a grocery store or supermarket that primarily sells food products in bulk quantities (a
"Wholesale Grocer"), or (iii) sell, lease or otherwise transfer all or any portion of the Restricted
Property to any party to support a facility operating either under the Merchandising Concept or as a
Wholesale Grocer (i.e., for parking or other necessary improvements for such a facility; or (iv) sell,
lease or otherwise transfer all or any portion of the Restricted Property to any party for use as a "Wal-
Mart" store or "Wal-Mart Supercenter" or any other store operated under the "Wal-Mart" brand;
provided, however, that in no event shall any of the foregoing prohibitions prohibit the Restricted
Property from being used for or as a Costco Wholesale warehouse club or any other facility then
operated by Purchaser or by any successor to Purchaser (collectively, a "Costco Facility"). The
foregoing prohibitions include, but shall not be limited to: (a) any business that operates as a warehouse
club (other than a Costco Facility), (b) any business operated under the tradenames of Sam's, BJ's, Jetro,
Price Smart or Smart and Final, and (c) any business (other than a Costco Facility) similar to those
operated under the tradenames Costco, Sam's, BJ's, Price Smart, Jetro or Smart and Final. This
covenant shall be binding on the Restricted Property and Purchaser shall have the right to record a
document containing this restrictive covenant against any Restricted Property (whether currently owned
or acquired after the date of the DDA by Seller or any other of Seller's Entities) and Seller (or other
Seller's Entities, as applicable) shall cooperate with Purchaser in recording such document. Seller, on
its own behalf and on behalf of each of Seller's Entities, acknowledges that the breach of the foregoing
restrictive covenant may cause immediate and irreparable harm for which damages are not an adequate
remedy and that, to protect against such harm, Purchaser may seek and obtain fiom a court of competent
jurisdiction the issuance of a restraining order or injunction to prohibit any actual or threatened breach.
Such an action for a restraining order or injunction is in addition to and does not limit any and all other
remedies provided by law or equity.
Attachment #2
EXCLUSIVE NEGOTIATING AGREEMENT
THIS EXCLUSIVE NEGOTIATING AGREEMENT (this "Agreement") is entered into
as of the day of January, 2011, by and among the REDEVELOPMENT AGENCY
OF THE CITY OF UKIAH, a public agency, corporate and politic exercising governmental
functions and powers and organized and existing under the Community Redevelopment Law of
the State of California (Health and Safety Code Section 33000 et seq.) ("Agency"); COSTCO
WHOLESALE CORPORATION, a Washington corporation duly qualified to do business in the
State of California ("Costco"); and the CITY OF UKIAH, a municipal corporation organized and
existing pursuant to the Constitution and laws of the State of California ("City"). Agency, City
and Costco shall be collectively referred to as the "Parties". The Parties agree as follows:
100. SUBJECT OF AGREEMENT
101. Purpose of this Agreement. The purpose of this Agreement is to establish a
period during which Costco shall have the exclusive right to negotiate with Agency the terms of
a Disposition and Development Agreement or other agreement (the "DDA") to effectuate the
Redevelopment Plan (the "Redevelopment Plan") for the Ukiah Redevelopment Project by
providing for the disposition and development of certain real property (the "Site") included
within the boundaries of the Project (the "Project Area") by providing for the development,
construction and operation on the Site, in accordance with Costco's requirements, of a wholesale
and retail general merchandise facility, which facility also may include, without limitation, a
pharmacy, tire sales and installation center, liquor sales, a vehicle fueling facility, a car wash,
photo processing, butcher, deli and bakery services, optometry services, furniture sales, related
office space, related parking, and other improvements (collectively, the "Costco Project"). The
further purpose of this Agreement is to establish procedures and standards for the negotiation and
approval of the DDA and governmental permits and approvals required for the Costco Project.
This Agreement in itself does not grant Costco the right to develop the Costco Project, nor does
it obligate Costco to any activities or costs to develop the Costco Project, except for the
preliminary analysis and negotiations contemplated herein.
102. The Redevelopment Plan. This Agreement is subject to the provisions of the
Redevelopment Plan that was approved and adopted on November 15, 1989 by the City Council
of the City of Ukiah, by Ordinance No. 895, and amended on December 16, 1998, by Resolution
No. 99-1, and further amended on November 27, 2006 by Ordinance No. 1088. The
Redevelopment Plan, as it now exists and as it may be subsequently amended, is incorporated
herein by reference and made a part hereof as though fully set forth herein.
103. The Project Area. The Project Area is located in the City of Ukiah, California,
and the exact boundaries thereof are specifically described in the Redevelopment Plan.
104. The Site. The Site is that portion of the Project Area shown on the Map of the
Site (Attachment No. 1) and is more particularly described in the Legal Description of the Site
(Attachment No. 2).
200. NEGOTIATION PERIOD
201. Length of Negotiating Period. For a period (the "Negotiating Period")
commencing on the Effective Date and continuing until one year after final and non-
appealable City and/or Agency action on the Environmental Impact Report currently being
prepared for expansion of the Ukiah Wal-Mart store (the "Wal-Mart EIR"), and provided the
Costco Project is determined to be feasible by the Parties, each acting in its sole and absolute
discretion, Agency agrees to negotiate with Costco and Costco agrees to negotiate with
Agency toward the terms and provisions of a mutually acceptable DDA and with Agency and
City toward the discretionary governmental approvals for the Costco Project (the
"Entitlements"). The Negotiating Period and this Agreement will terminate upon the mutual
execution of a DDA by Agency and Costco and the issuance of the Entitlements. The
Entitlements shall include, without limitation, creation of the Site as a single legal parcel
consisting of a size and configuration approved by Costco and that allows transfer of the Site at
Closing in compliance with all applicable subdivision laws, and re-zoning of the Site to allow
the uses contemplated for the Costco Project. It is the intention of the Parties that final action
on the DDA and issuance of the Entitlements shall occur substantially concurrently.
201.1 Extension to Comply with CEOA. If the Parties are proceeding with
commercially reasonable diligence and in good faith to complete their negotiations with respect
to a mutually acceptable DDA and to obtain issuance of the Entitlements, but Agency's ability
to take final action on the proposed DDA or issuance of the Entitlements is delayed as a result
of the need for City or Agency to comply with applicable provisions of the California
Environmental Quality Act, Public Resources Code Section 21000, et seq. and the State
Guidelines for Implementation of the California Environmental Quality Act set forth at Title 14,
California Code of Regulations Section 15000, et seq. (collectively, "CEQA"), the Negotiating
Period shall be automatically extended for the period of time it takes for City or Agency to
complete and take final non-appealable action on the DDA and the Entitlements pursuant
to CEQA.
201.2 Extension for Public Hearings and Agency Approval. If prior to close
of business on what would otherwise be the last day of the Negotiating Period Costco executes
and submits to Agency a proposed DDA, executed by Costco, that is the product of negotiations
and a meeting of the minds between Costco and Agency's staff and consultants, and Costco and
Agency and/or City staff and consultants have reached substantial agreement on the
Entitlements, the Negotiating Period shall be automatically extended for up to an additional
sixty (60) days to provide Agency sufficient time to prepare such reports and conduct such
public meetings and hearings as may be needed to enable Agency's governing board to
determine whether to approve and execute the proposed DDA, and to provide the respective
issuing authority sufficient time to prepare such reports and conduct such public meetings and
hearings as may be needed to approve issuance of the Entitlements.
201.3 Extension upon Mutual Agreement. In addition to the automatic
extension under Sections 201.1 and 201.2, the Parties may mutually agree in writing to extend
the Negotiating Period from time to time and for such periods as they may agree. Any extension
of this Agreement may be granted on behalf of Agency by its Executive Director. Agency
2
agrees to consider reasonable requests for extensions of time and shall, upon request, notify
Costco in writing of the reasons for any decision not to execute the DDA. Agency undertakes no
commitment or obligation to Costco to grant any such requested extension.
202. Good Faith Negotiations. The Parties intend that during the Negotiating Period
each will perform certain actions and fulfill certain obligations and responsibilities under this
Agreement. Agency, by and through its staff and consultants, and Costco agree for the
Negotiating Period to negotiate diligently and in good faith to prepare the DDA to be considered
for execution between Agency and Costco, in the manner set forth herein, with respect to the
proposed disposition and development of the Site, and Agency, City and Costco agree for the
Negotiating Period to pursue diligently and in good faith their other respective obligations set
forth in this Agreement.
203. Exclusive Negotiations.
203.1. Agency and City shall not, during the Negotiating Period, directly or
indirectly, through any officer, employee, agent, or otherwise, solicit, initiate or encourage the
submission of bids, offers or proposals by any person or entity other than Costco with respect to
the acquisition of any interest in the Site or any portion thereof, and Agency and City shall not
engage any broker, financial adviser or consultant to initiate or encourage proposals or offers
from other parties with respect to the disposition or development of the Site or any portion
thereof. Furthermore, during the Negotiating Period, Agency and City shall not, directly or
indirectly, through any officer, employee, agent or otherwise, engage in negotiations concerning
any such transaction with, or provide information to, any person other than Costco and its
representatives with a view to engaging, or preparing to engage, that person with respect to the
disposition or development of the Site or any portion thereof.
203.2. Costco shall not, during the Negotiating Period, directly or indirectly,
through any officer, employee, or agent investigate, negotiate, or otherwise, solicit, initiate or
submit bids, offers or proposals to any person or entity other than Agency with respect to the
acquisition of any interest in real property or any portion thereof in Mendocino County for a
Costco Project, and Costco shall not engage any broker, financial adviser or consultant to initiate
or encourage proposals or offers from other parties with respect to acquisition of such interests in
such real property for a Costco Project. Furthermore, during the Negotiating Period, Costco
shall not, directly or indirectly, through any officer, employee, agent or otherwise, engage in
negotiations concerning any such transaction with, or provide information to, any person other
than Agency and City and their representatives with a view to engaging, or preparing to engage,
that person with respect to the acquisition of any interest in real property in Mendocino County
for the development of a Costco Project.
204. Expenses. Costs and expenses incurred in connection with this Agreement and
the activities contemplated hereby shall be allocated among the Parties and paid pursuant to a
reimbursement agreement (the "Reimbursement Agreement") to be negotiated among the Parties
within sixty (60) days after the Effective Date. Agency and Costco agree to meet routinely in
order to ensure that costs and expenses arising under or pursuant to this Agreement or in
connection with this Agreement and/or DDA, including, without limitation, costs of pursuing the
3
Entitlements are taken into consideration with respect to the preparation of additional studies,
reports, and other materials in pursuit of the DDA and the Entitlements.
300. INVESTIGATIONS
301. Reports and Studies. Within fifteen (15) days following the Effective Date, City
and Agency shall each furnish to Costco all material information within its possession or control
concerning the Project Area, not already furnished to Costco or obtained by Costco under or in
the performance of the Letter of Intent among the Parties, dated May 12, 2010, and signed by
City and Agency officials on May 19, 2010, including without limitation, copies of any
topographical surveys, environmental reports, engineering studies, soil-bearing test data,
diagrams indicating the location of existing utilities, title policies/commitments, surveys,
instruments referred to in the title policy or commitment as conditions or exceptions to title and
any similar reports and studies with respect thereto. Costco shall provide Agency without cost
the results of any investigation, topographical surveys, engineering studies, soil-bearing test data,
surveys or other studies and reports of the Site prepared by Costco or its officers, agents,
contractors or employees as they become available, but not later than thirty (30) days after the
Agency submits a written request for such results or studies to Costco. All information furnished
by either Party to the other pursuant to this Section 301 is provided without any representation or
warranty as to its accuracy and each party agrees to waive any claim against the other party
arising out of its receipt or reliance on said information.
302. Rights of Entry and Investigation. During the Negotiating Period, Costco, at
Costco's sole expense, may investigate and determine the soil conditions of the Site and the
suitability of such soil conditions for the improvements to be constructed by Costco, and may
undertake any additional surveys, structural measurements, architectural and engineering studies,
and other studies and tests Costco deems appropriate, and Costco and its representatives shall
have the right of access to the Site at all reasonable times for the purpose of obtaining data and
making surveys and tests necessary to carry out this Agreement. If the soil or any other Site
conditions, title conditions or market conditions are not in all respects entirely suitable for the
use or uses to which the Site will be put, then Costco may elect, in Costco's sole and absolute
discretion, to terminate this Agreement or to proceed to enter into the DDA. Any
representations, warranties, agreements, obligations, liabilities or responsibilities pertaining to
the condition of the Site or the Costco Project will be the subject of negotiations between the
Parties in connection with the negotiation of the DDA. Costco shall have access to all data and
information regarding the Site available to Agency, but without warranty or representation by
Agency as to the completeness, correctness or validity of such data and information.
303. Indemnity. As consideration for permission to enter upon the Site as described
above, Costco agrees to restore the Site to substantially the same condition as existed prior to such
entry and to indemnify and hold Agency harmless from and against any demand, damage, loss,
action, liability, cause of action or judgment and all liability for claims of whatever nature arising out
of the entry onto the Site by any agent, employee, associate, independent contractor, or anyone else
entering at the request, direction or invitation of Costco, provided, however, that (i) this indemnity
shall not apply to the extent such liability arises in connection with the negligence or willful
misconduct of any other Party or an agent of that Party, and (ii) Costco shall have no liability
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to Agency or to any other person or entity by reason of, nor shall Costco have any duty to indemnify,
defend or hold any person or entity harmless from or against, any claim, demand, damage, loss,
action, liability, cause of action or judgment, including, without limitation, any claim for diminution
in value of the Site or for environmental remediation or clean-up costs, arising out of or in
connection with the mere fact of having discovered and/or reported (as may be required by law)
any adverse physical condition, title condition, or other condition or defect with respect to the Site.
400. COSTCO SUBMISSIONS
401. Costco Oualifications. Costco has provided Agency with access to its most
recent Annual Report and financial statements it is required as a publicly-traded company to file
with the Securities and Exchange Commission. Agency has reviewed the Annual Report and
financial statements and, by its execution of this Agreement, Agency represents to Costco that it
has determined Costco has sufficient equity capital to acquire and develop the Site and the
necessary qualifications to develop and operate the proposed Costco Project.
402. Preliminary Submittals. By February 1, 2011, Costco shall submit to Agency
concept drawings for the Costco Project. Costco's submission shall include: (i) a development
proposal and site plan, including elevations, generally describing the Costco Project ("Basic
Concept Drawings"); (ii) a scope of development for the Costco Project; and (iii) a proposed
construction schedule of development. Agency may waive Costco's obligation to provide any
item(s) required pursuant to this Section. Costco agrees to cooperate in furnishing the
information to Agency; provided, however, the Parties agree Costco shall not be required to
provide proprietary information.
403. Applications for Entitlements. Within thirty (30) days after the Effective Date,
Costco shall submit formal Entitlement Applications for the Costco Project to City, including
applications for rezoning, subdivision, architectural control, landscaping plans, fixture
specifications, water quality management plans, and other reports, studies, documents,
exhibits, and displays, as typically may be required by City or Agency (collectively,
"Entitlement Application"). The Entitlement Applications shall be processed in accordance
with and within the time limits required by state law, including the Permit Streamlining Act
(Gov't Code §69520 et seq.) and City ordinance.
403.1. CEOA Determination. In the event City determines an EIR must be
prepared for the Costco Project, the Parties agree that the cost to prepare the EIR and the time
required for its preparation should be minimized by, among other things, making use of other
environmental studies and EIRs prepared or in the course of being prepared for projects within
the Redwood Business Park. The City shall use its best efforts to capitalize on such efforts.
Toward that end, in compliance with Ukiah City Code Section 1522, the City shall endeavor to
retain Environmental Science Associates ("ESA") as the consultant to prepare the EIR. In the
event ESA cannot be retained for any reason, the City shall promptly provide Costco with a list
of pre-approved environmental consultants and Costco shall be permitted to recommend an
environmental consultant from such list ("Environmental Consultant"). City shall consider
Costco's recommendation in selecting an Environmental Consultant from the list to prepare
the EIR for the Costco Project. Costco shall cooperate with Agency and City in preparing
environmental documents by supplying necessary technical data and other related information
and/or development plans concerning the Costco Project. Any costs, fees and charges associated
with compliance with CEQA requirements shall be paid in accordance with the Reimbursement
Agreement.
500. NEGOTIATION AND APPROVAL OF DDA
501. Process of Negotiation. Within ninety (90) days after the Effective Date, Costco
shall deliver to Agency a draft of the DDA. Unless and until this Agreement is terminated
pursuant to Section 600 below, the Parties shall negotiate diligently and in good faith until the
end of the Negotiating Period, subject to extension as in this Agreement provided, and thereafter
any of the Parties may terminate this Agreement by written notice to the other Parties. The DDA
shall include, without limitation, terms and provisions for the following:
501.1 Construction Obligations. (i) The design of the Costco Project, which
design shall be subject to approval by Agency and City during the Negotiating Period; (ii) the
acquisition of the Site conditioned upon issuance of all entitlements and all building and other
permits necessary for construction of the Costco Project (the "Project Approvals"); (iii)
construction of the Costco Project in accordance with final plans and specifications to be
provided by Costco and approved by Agency and City, pursuant to a detailed schedule of
performance that shall include, but not be limited to, the date for the submittal of construction
plans to Agency, the date for commencement of construction of the Costco Project and the date
for completion of construction; and (iv) any infrastructure work to be undertaken by Agency or
City in connection with the Costco Project and the schedule of performance for such work.
501.2 Representations and Warranties. Usual and customary representations
and warranties by Agency and Costco in favor of each other.
501.3. Deposit. That within ten (10) business days following its full execution and
delivery, Costco will deposit earnest money of Fifty Thousand and No/100 Dollars ($50,000.00)
(the "Deposit") with First American Title Insurance Company ("Title Company"). Title
Company will place the Deposit in an interest-bearing account with interest to accrue to
Costco's benefit. If the transfer of the Site to Costco pursuant to the DDA closes, the Deposit shall
be credited against the Purchase Price. If the transaction does not close for any reason other than
default by Costco, then the Deposit shall be returned to Costco. In the event of Costco's default
under the DDA, Agency shall have as its sole remedy the right to terminate the DDA and retain
the Deposit as liquidated damages.
501.4. Restrictive Covenant. An exclusive use covenant in favor of Costco
substantially in the form set forth in Attachment 3 hereto.
501.5. Closing. That the closing on Costco's acquisition of the Site (the
"Closing") shall occur at the office of Title Company on a date selected by Costco that is within 30
days after Costco has received the Project Approvals and prior to commencement of construction; and
that at the Closing Agency shall: (i) provide Costco with a grant deed to the Site subject only to
exceptions approved by Costco, (ii) cause all deeds of trust, mortgages, assessments and liens
encumbering the Site (except for the current year's ad valorem real property taxes) to be paid and
satisfied, and (iii) deliver full, sole, vacant and exclusive possession of the Site to Costco, subject
to no tenancies, leasehold interests, or other similar interests.
501.6. Closing Costs and Prorations. That at the Closing, Agency will pay the
following costs in connection with the Closing: all real estate excise or recording, conveyance,
transfer, documentary stamp or similar taxes or fees imposed in connection with the conveyance of
the Site, the costs of a CLTA standard owners title insurance policy, and one half (1/2) of Title
Company's escrow fee; Costco will pay the following costs in connection with the Closing: any
additional premium for an ALTA title insurance policy, including the costs of any survey or any
endorsements requested by Costco, and one-half (1/2) of Title Company's escrow fee; property taxes
for the year in which the Closing occurs will be prorated as of the date of the Closing; and each party
shall pay its own legal and other consultants' fees incurred in connection with negotiation of and
performance under this Agreement and the DDA, except as otherwise may be provided in the
Reimbursement Agreement.
501.7. Purchase Price. That the purchase price for the Site (the "Purchase Price")
shall be Three and 501100 Dollars ($3.50) per square foot of Property, net of any area that is not
available for Costco's exclusive use as building, fueling facility, parking lot improvements, including,
without limitation, lighting, drive aisles, cart corrals, curb, gutters, and sidewalks, and related
landscaping. It is estimated that the Site contains approximately 15.33 acres of land (assuming that
all of the land will be usable) and that the Purchase Price shall be approximately Two Million
Three Hundred Thirty-Seven Thousand Two Hundred Eleven Dollars and 80/100 Dollars
($2,337,211.80). The exact area of the Site and the total Purchase Price shall be determined prior to
the Closing by the survey to be obtained during the Negotiating Period. The Purchase Price shall
be payable at the Closing in immediately available funds. Agency heretofore has obtained an
appraisal of the Site prepared by George R. Dutton, California State Certified General
Appraiser 4AGO-26971, an independent real estate appraiser, to determine the fair market
value of the Site (the "Appraisal"). That Appraisal is the basis on which the Purchase Price
has been agreed upon between Agency and Costco. The Purchase Price for the Site therefore
is the fair market value of the Site, and the terms and conditions set forth in this Agreement do
not and the DDA will not include any subsidy, discount, rebate, credit, or other similar direct
or indirect economic benefit to Costco. In the event of any claim by the California Department
of Industrial Relations, any other governmental authority, or any other party, to the effect that
the acquisition and development of the Site (or any portion thereof) by Costco should be
classified as a "public work" subject to the California prevailing wage law, Labor Code
Section 1720, et seq., Agency shall cooperate with Costco in opposing any such claims.
501.8. Broker's Commissions. That conditioned upon and at the close of
escrow of the conveyance of the Site to Costco, Agency shall be responsible for paying (i) a
broker's commission in the amount of THREE HUNDRED THOUSAND DOLLARS
($300,000), to be paid in equal shares to NWAP II, Inc., and Collier's International (Jason
Galleli), and (ii) a broker's commission in the amount of Three Percent (3%) of the Purchase
Price, to be paid to Realty World Seltzer Realty. Agency, City and Costco each represent to the
other that it has engaged no other broker in connection with the transaction set forth in this
Agreement to whom a commission is or would be payable.
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501.9. Non-Discrimination. That the deed conveying the Site to Costco shall
provide that there shall be no discrimination against or segregation of, any person or group of
persons on account of any basis listed in subdivision (a) or (d) of Section 12955 of the
Government Code, as those bases are defined in Sections 12926, 12926.1, subdivision
(m) and paragraph (1) of subdivision (p) of Section 12955, and Section 12955.2 of the
Government Code, in the sale, lease, sublease, transfer, use, occupancy, tenure, development,
or enjoyment of the Site, nor shall the grantee or any person claiming under or through him,
her or it, establish or permit any practice or practices of discrimination or segregation with
reference to the selection, location, number, use or occupancy of tenants, lessees, subtenants,
sublessees, or vendees in the Site.
501.10. Statutory Requirements. Provisions required by the California
Community Redevelopment Law for such agreements as well as the procedures set forth in the
Community Redevelopment Law for approval of such an agreement.
502. Effect of Negotiations. If the Parties successfully negotiate a DDA, Agency shall
promptly conduct the noticed public hearing required by Community Redevelopment Law
(California Health & Safety Code Section 33300 et seq.), shall comply with all applicable CEQA
requirements, and shall recommend approval of the DDA to Agency's governing board. Neither
Agency nor City shall have any legal obligation to grant any approvals or authorizations for the
Costco Project before the DDA has been approved by Agency's governing board. Costco
understands and acknowledges that any DDA resulting from the negotiations arising from this
Agreement shall become effective only if and only after such DDA and the additional Agency
and City approvals contemplated by this Agreement have been considered and approved by
Agency and City, respectively as appropriate, at a public hearing or hearings called for that
purpose.
503. Action by City and Agency. During the Negotiating Period, City and Agency
shall take all steps necessary so that no later than concurrently with the approval of the DDA, the
Site shall be a single, separate legal parcel and shall be zoned to allow all of Costco's intended
uses and operations, and the Basic Concept Drawings shall be approved by Agency and City as
the basis for proceeding to construction plans and specifications.
504. No Predetermination of Discretion. The Parties agree and acknowledge that
nothing in this Agreement in any respect does or shall be construed to affect or prejudge the
exercise of Agency's or City's discretion concerning consideration of any submittal by Costco.
Further, nothing in this Agreement in any respect does or shall be construed to affect or prejudge
Agency's or City's discretion to consider, negotiate, or undertake the action hereunder or any
required approvals necessary by the laws, rules, and regulations governing the development of
Site or infrastructure.
600. PERFORMANCE UNDER THIS AGREEMENT
601. Termination by Costco at Will. Costco may terminate this Agreement at any
time, in Costco's sole and absolute discretion, including, without limitation, upon dissatisfaction
8
with the results of its investigations, analyses and studies, the progress of negotiations hereunder,
the costs of procuring or complying with the Entitlements or Project Approvals, or any other
costs or other aspects of the Costco Project, by delivering written notice of such termination to
City or Agency.
602. Termination by Agency for Cause. If Agency contends that Costco has not
proceeded diligently and in good faith to perform all of Costco's obligations under this
Agreement, Agency shall give written notice thereof to Costco specifying the nature of the
failure and the action required to cure it, and Costco then shall have ten (10) business days to
commence performing its obligations as defined in this Agreement. Following the receipt of
such notice and the failure of Costco to thereafter commence such performance, in good faith,
within such ten (10) business days, this Agreement may be terminated by Agency. In the event
of such termination by Agency, Agency shall have the right to retain the Deposit.
603. Effect of Termination. Upon termination as provided herein, or upon the
expiration of the Negotiating Period and any extensions thereof without the Parties having
successfully negotiated a DDA, (1) this Agreement shall forthwith be void, and (2) City and
Agency shall immediately cause to be terminated within three (3) business days thereafter all
activities in which it or its consultants are engaged that relate in any manner to the Costco
Project, except for such activities as City, or Agency may elect to continue at no expense to
Costco after such termination; and there shall be no further liability or obligation on the part of
any of the Parties or their respective officers, employees, agents or other representatives;
provided however, the provisions of Section 303 (Indemnity), Section 701 (Hold Harmless), and
Section 803 (Confidentiality) shall survive such termination.
604. Remedies. Except as otherwise expressly provided in this Agreement, any failure
or delay by any Party in asserting any of its rights or remedies as to any default shall not operate
as a waiver of any default or of any such rights or remedies or deprive such party of its right to
institute and maintain any actions or proceedings that it may deem necessary to protect, assert or
enforce any such rights or remedies. In addition to any other rights or remedies, a Party may
institute legal action to cure, correct or remedy any default, or recover damages for any default,
or to obtain any other remedy consistent with the purpose of this Agreement. Such legal actions
must be instituted in the Superior Court of the County of Mendocino, State of California. Except
as otherwise expressly stated in this Agreement, the rights and remedies of Costco are
cumulative and the exercise of one or more of such rights or remedies shall not preclude the
exercise by it, at the same time or different times, of any other rights or remedies for the same
default or any other default by Agency or City.
605. Agency's Unrestricted Right to Sell. Agency represents and warrants to Costco that
no understanding, agreement (either express or implied) or reasonable expectancy of agreement with
respect to the sale, lease or other transfer of the Site exists between Agency and any party other
than Costco as of the Effective Date. Agency further represents and warrants that Agency is not
restricted from negotiating with Costco regarding the terms and provisions of the DDA. Agency
further acknowledges that Costco's interest in the Site and willingness to enter into this Agreement
is conditioned on Agency's foregoing representations and warranties. Agency agrees to defend,
indemnify and hold Costco harmless from and against any claim arising from a breach of the
foregoing.
700. HOLD HARMLESS
701. Hold Harmless. Each of the Parties hereby covenants, on behalf of itself and its
successors and assigns, to indemnify, save and hold harmless and defend each of the other
Parties and the respective agents, officers, officials, employees and other representatives of each
of the indemnified Parties, from all claims, demands or actions, including without limitation
reasonable attorneys' fees and litigation costs, arising out of, resulting from, or in connection
with the negligence or willful misconduct of the indemnifying Party with respect to this
Agreement, including, but not limited to, the indemnifying Party's actions or lack of actions with
respect to the Costco Project, the negotiation and execution of this Agreement, and the
negotiation, approval and execution of a DDA for the Costco Project.
800. LIMITATIONS
801. Reservation of Discretion. By its execution of this Agreement, neither City nor
Agency is committing itself to or agreeing to undertake: (a) any commitment or reservation of
public funds, revenues or reserves to the Costco Project; (b) approval of the Costco Project; (c)
any other acts or activities requiring the subsequent independent exercise of discretion by
Agency or City or any agency or department of City.
802. No Public Hearing Requirement. This Agreement does not constitute a
disposition of property by Agency or City, and does not require a public hearing. Execution of
this Agreement is merely an agreement to enter into a period of exclusive negotiations according
to the terms of this Agreement and reserves final discretion and approval by Agency and City as
to any DDA and all proceedings and decisions in connection herewith.
803. Confidentiality. During the term of this Agreement, each of the Parties shall
obtain the consent of the other Parties prior to issuing or permitting any of its officers, employees
or agents to issue any press release or other information to the press with respect to this
Agreement; provided however, no Party shall be prohibited from supplying any information to
its representatives, agents, attorneys, advisors, financing sources and others to the extent
necessary to accomplish the activities contemplated hereby so long as such representatives,
agents, attorneys, advisors, financing sources and others are made aware of the terms of this
Section. Nothing contained in this Agreement shall prevent any of the Parties at any time from
furnishing any required information to any governmental entity or authority pursuant to a legal
requirement or from complying with its legal or contractual obligations or from complying with
legal requirements governing the disclosure of public records, including the provisions of the
California Public Records Act.
900. ASSIGNMENT
901. Assignments Not Requiring Consent. Costco shall be entitled to assign
Costco's interest under this Agreement, without the consent of City or Agency, (i) to a
10
subsidiary, affiliate or parent of Costco or any other entity which controls, is controlled by or is
under common control with Costco, provided Costco shall not be released from its obligations or
liabilities hereunder; (ii) to a successor of Costco as a result of a merger or consolidation; or (iii)
to a limited liability company the members of which include a majority composed of Costco
and/or entities controlled by, controlling or under common control with, Costco. Except as
provided in the foregoing sentence, Costco shall not assign all or any part of this Agreement
without the prior written approval of Agency; provided, however, Costco is a publicly-traded
company and any change in ownership of Costco's publicly-traded capital stock shall not
constitute an assignment for the purposes of this Agreement.
1000. GENERAL PROVISIONS
1001. Notices, Demands and Communications Between the Parties. Formal notices,
demands and communications among the Parties ("Notices") shall be sufficiently given if in
writing and dispatched by (a) Federal Express, UPS, or other established express delivery
services which maintains delivery records; or (b) by hand delivery; or (c) registered or certified
mail, postage prepaid, return receipt requested, to the following addresses or to such other
address(es) and/or addressee(s) as the respective Party may from time to time designate by
Notice delivered in one of the foregoing manners:
To Agency: Redevelopment Agency of the City of Ukiah
300 Seminary Avenue
Ukiah, CA 95482
Attn: Executive Director
To City: The City of Ukiah
300 Seminary Avenue
Ukiah, CA 95482
Attn: City Manager
With copy to: Rapport & Marston
405 W Perkins Street
Ukiah, CA 95482
Attn: David J. Rapport, Esq.
To Costco: Costco Wholesale Corporation
999 Lake Drive
Issaquah, WA 98027
Attn: Seth S. Katz, Corporate Counsel
With copy to: Northwest Atlantic Partners
500 N. State College Blvd, Suite 1080
Orange, CA 92868
Attn: Michael Dobrota
And copy to: Luce Forward Hamilton & Scripps LLP
11
121 Spear Street, Suite 200
San Francisco, CA 94105
Attn: Counsel for Costco Wholesale Corporation
1002. Conflicts of Interest. No member, official or employee of Agency or City shall
have any personal interest, direct or indirect, in this Agreement, nor shall any such member,
official or employee participate in any decision relating to this Agreement that affects his or her
personal interests or the interests of any corporation, partnership or association in which he or
she is directly or indirectly interested. Costco warrants that it has not paid or given, and will not
pay or give, any third person any money or other consideration for obtaining this Agreement.
The fact that a public official, employee, consultant or representative may hold a membership in
Costco Wholesale on terms and conditions generally available for such membership shall not be
deemed or construed to be a violation of the foregoing.
1003. No Liability of Agency Officials and Employees. No member, official or
employee of Agency or City shall be personally liable to Costco in the event of any default or
breach by Agency or City or for any amount that may become due to Costco or on any
obligations under the terms of this Agreement, except to the extent wrongfully caused by or
directly attributable to the wrongful acts or omissions of such member, official or employee.
1004. Enforced Delay: Extension of Times of Performance. In addition to the
specific provisions of this Agreement, performance by any Party hereunder shall not be deemed
to be in default where delays or defaults are due to war; act of terrorism; insurrection; strikes;
lock-outs; riots; floods; earthquakes; fires; casualties; acts of God; acts of the public enemy;
epidemics; quarantine restrictions; freight embargoes; lack of transportation; governmental
restrictions or priority of general application (as opposed to such as may apply only or primarily
to Costco or the Costco Project); litigation; unusually severe weather; inability to secure
necessary labor, materials or tools; delays of any contractor, subcontractor or supplier; acts of
another party; acts or the failure to act of any public or governmental agency or entity (except
that acts or the failure to act by Agency or City shall not excuse performance by Agency or
City); or any other causes beyond the control or without the fault of the Party claiming an
extension of time to perform. An extension of time for any such cause shall only be for the
period of the enforced delay, which period shall commence to run from the time of the
commencement of the cause. Times of performance under this Agreement may also be extended
in writing by Agency and Costco in the same manner as provided for extension of the
Negotiating Period in Section 201.3.
1005. Amendments to this Agreement. Costco, Agency and City agree to mutually
consider reasonable requests for amendments to this Agreement that may be made by any of the
Parties hereto, lending institutions or bond counsel or financial consultants to Agency, provided
such requests are consistent with this Agreement and would not substantially alter the basic
business terms included herein.
1006. Entire Agreement, Waivers and Amendments. This Agreement integrates all
of the terms and conditions mentioned herein or incidental hereto, and supersedes all
negotiations or previous agreements between the Parties with respect to all or any part of the
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subject matter hereof. All waivers of the provisions of this Agreement must be in writing and
signed by the appropriate authorities of the Parties, and all amendments hereto must be in writing
and signed by the appropriate authorities of the Parties. Agency shall be the authorized
representative of City for any such waivers and amendments.
1007. Implementation of Agreement. Agency shall maintain authority to implement
this Agreement through the Agency Executive Director (or his or her duly authorized
representative). The Agency Executive Director shall have the authority to issue interpretations,
waive provisions, grant extensions and/or enter into certain amendments of this Agreement on
behalf of Agency and City so long as such actions do not materially or substantially change the
uses or concept of the Costco Project, or add to the costs incurred or to be incurred by Agency or
City as specified herein or in the Reimbursement Agreement.
1008. Cooperation. Each of the Parties hereto agrees to cooperate with the other
Parties in undertaking any and all additional steps which may be necessary or convenient to the
completion of the transactions contemplated by this Agreement, including without limitation, the
preparation and execution of such other and further instruments as may evidence or facilitate the
same.
1009. Partial Invalidity. If any provision hereof is held invalid or not enforceable to its
full extent, such provision shall be enforced to the fullest extent permitted by law, and the
validity of the remaining provisions hereof shall not be affected thereby.
1010. Headings. The headings of various sections in this Agreement are for
convenience only and are not. to be utilized in construing the content or meaning of the
substantive provisions hereof.
1011. Exhibits and Attachments. The exhibits, attachments, schedules, and addenda
(if any) attached to and referred to in this Agreement are hereby incorporated into this
Agreement as fully as if set out in their entirety herein.
1012. Effective Date. The effective date of this Agreement (the "Effective Date") shall
be the date on which this Agreement is signed by the last of the signatories hereto.
1013. Relationship of the Parties. The Parties agree that nothing in this Agreement
shall be deemed or interpreted to create between the governmental entities and Costco the
relationship of lessor and lessee, of buyer and seller, or of partners or joint venturers.
1014. Successors and Assigns; No Third-Party Beneficiaries. This Agreement shall
be binding upon and inure to the benefit of the Parties and their respective successors and
assigns. This Agreement is not intended to benefit, and shall not run to the benefit or be
enforceable by any other person or entity other than the Parties and the permitted successors and
assigns of each of them.
13
1015. Governing Law. This Agreement and the legal relations among the Parties
hereto shall be governed by and construed and enforced in accordance with the laws of the State
of California.
1016. Counterparts. This Agreement may be executed in counterparts, each of which
when so executed shall be deemed an original, and all of which, together, shall constitute one
and the same instrument.
1017. Time for Acceptance by Agency and City. This Agreement, when executed by
Costco and delivered to Agency, must be authorized, executed and delivered by Agency and City
within thirty (20) days after the date of signature by Costco or this Agreement shall be void,
except to the extent that Costco shall consent in writing to further extensions of time for the
authorization, execution and delivery of this Agreement.
[SIGNATURES FOLLOW ON NEXT PAGE]
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201_ REDEVELOPMENT AGENCY OF THE CITY
OF UKIAH, a public agency, corporate and politic
By:
Executive Director
By:
Secretary
"AGENCY"
201 THE CITY OF UKIAH, a municipal corporation
By:
By:
"CITY"
,201_ COSTCO WHOLESALE CORPORATION, a
Washington corporation
By:
Title:
"COSTCO"
15
1 •
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ATTACHMENT #1
MAP OF SITE
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a
P
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z
Owner: Ukiah Redevelopment Agency
-
Lot F-8 (APN 180-080-62 & 63)
Lot G3 (APN 180-080-57)
g
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Lot F10 (APN 180-080-64 & 65)
g
Lot F11 (APN 180-080-66 & 67)
Lot G1 (APN 18.0-080-59)
s
Lot G2 (APN 180-80-58)
Parcel 1 (APN 180-110-08, 09, & 10)
O
4
t
ATTACHMENT 2
LEGAL DESCRIPTION OF SITE
All that certain real property situate, lying and being in the City of Ukiah, County of Mendocino,
State of California, more particularly described as follows:
TRACT ONE:
Parcel One:
Lots F8 and G3, as numbered and designated on that certain Parcel Map No. M.S. 97-07 filed for
record July 28, 1997 in Map Case 2, Drawer 64, Pages 21 and 22, Mendocino County Records.
APN: 180-080-57, 180-080-62 and 180-080-63
Parcel Two:
An easement for ingress, egress and public utility purposes over a strip of land more particularly
described as follows:
Commencing at the Southwest corner of Lot B6 as shown on the map of Redwood Business Park
of Ukiah, filed in Case 2, Drawer 47, Page 24, Mendocino County Records; said point also being
the Northeast corner of that parcel of land dedicated to the City of Ukiah for roadway purposes
in Book 2024, Official Records, Page 518, Mendocino County Records; thence along the
Easterly line of said City of Ukiah lands from a tangent bearing of South 14° 33' 42" East, along
a curve to the left having a radius of 3,965.00 feet through a central angle of 0° 49' 56" from an
arc length of 57.60 feet to the Southeast corner thereof and the true point of beginning of this
description; thence from said point of beginning from a tangent bearing of South 15° 23' 38"
East, along a curve to the left having a radius of 3,965.00 feet through a central angle of 0° 36'
21" for an arc length of 41.92 feet to a point of reverse curvature; thence from a tangent bearing
of South 15° 59'59" East, along a curve to the right having a radius of 4,035.00 feet through a
central angle of 10° 23' 15" for an arc length of 731.53 feet; thence South 5° 36'44" East,
1119.01 feet; thence South 82° 45'50" West, 70.03 feet; thence North 5° 36' 44" West, 1120.99
feet; thence from a tangent bearing of North 5° 36'44" West, along a curve to the left having a
radius of 3,965.00 feet through a central angle of 6° 09'48" for an arc length of 426.52 feet to the
Southeast corner of Lot D2-B as shown on the Parcel Map filed in Case 2, Drawer 58, Page 38,
Mendocino County Records; thence along the Easterly line of said Lot D2-B from a tangent
bearing of North 11° 46' 32" West, along a curve to the left having a radius of 3,965.00 feet
through a central angle of 4° 13' 27" for an arc length of 292.32 feet to a point of reverse
curvature; thence from a tangent bearing of North 15° 59' 59" West, along a curve to the right
having a radius of 4,035.00 feet through a central angle of 0° 36' 21" for an arc length of 42.67
feet to the Southwest corner of the aforementioned City of Ukiah lands; thence leaving said
Easterly line of Lot D2-B and along the Southerly line of said City of Ukiah lands North 74° 36'
22" East, 70.00 feet to the Southeast corner thereof and the true point of beginning.
TRACT TWO:
17
Lots G1, G2 and F-11 as numbered and designated on that certain Parcel Map No. M.S. 97-07
filed for record July 28, 1997 in Map Case 2, Drawer 64, Pages 21 and 22, Mendocino County
Records.
APN: 180-080-58, 180-080-59, 180-080-66 and 180-080-67
TRACT THREE:
Lot F-10 as numbered and designated on that certain Parcel Map No. M.S. 97-07 filed for record
July 28, 1997 in Map Case 2, Drawer 64, Pages 21 and 22, Mendocino County Records.
APN: 180-080-64 and 180-080-65
TRACT FOUR:
Parcel One:
Parcel 1, as numbered and designated on that certain Parcel Map of Minor Subdivision #04-51
filed for record October 2, 2006 in Drawer 74, Pages 4, 5 and 6, Mendocino County Records and
amended September 9, 2009 in Drawer 78, Pages 76, 77 and 78, Mendocino County Records.
APN: 180-110-08, 180-110-09 and 180-110-10
18
ATTACHMENT 3
COSTCO'S EXCLUSIVE USE PROVISION
Neither Agency, nor any subsidiary, affiliate, parent or other entity that controls, is controlled by, or
is under common control with Agency (collectively "Agency's Entities") shall, directly or indirectly,
with respect to all or any portion of any property currently or in the future owned by Agency or any of
Agency's Entities within ten (10) miles in ally direction from the exterior boundaries of the Site
(the "Restricted Property"), (i) sell, lease or otherwise transfer all or any portion of the Restricted
Property to, or, for use as, a wholesale or retail general merchandise facility that has a
merchandising concept based upon a relatively limited number of stock keeping units in a large
number of product categories (the "Merchandising Concept"), (ii) sell, lease or otherwise transfer all
or any portion of the Restricted Property for use as a grocery store or supermarket that primarily sells
food products in bulk quantities (a "Wholesale Grocer"), or (iii) sell, lease or otherwise transfer all
or any portion of the Restricted Property to any party to support a facility operating either under
the Merchandising Concept or as a Wholesale Grocer (i.e., for parking or other necessary
improvements for such a facility; or (iv) sell, lease or otherwise transfer all or any portion of the
Restricted Property to any party for use as a "Wal-Mart" store or "Wal-Mart Supercenter" or any
other store operated under the "Wal-Mart" brand; provided, however, that in no event shall any of
the foregoing prohibitions prohibit the Restricted Property from being used for or as a Costco
Wholesale warehouse club or any other facility then operated by Costco or by any successor to
Costco (collectively, a "Costco Facility"). The foregoing prohibitions include, but shall not be
limited to: (a) any business that operates as a warehouse club (other than a Costco Facility), (b) any
business operated under the tradenames of Sam's, BJ's, Jetro, Price Smart or Smart and Final, and
(c) any business (other than a Costco Facility) similar to those operated under the tradenames
Costco, Sam's, BJ's, Price Smart, Jetro or Smart and Final. This covenant shall be binding on the
Restricted Property and Costco shall have the right to record a document containing this restrictive
covenant against any Restricted Property (whether currently owned or acquired after the date of the
DDA by Agency or any other of Agency's Entities) and Agency (or other Agency's Entities, as
applicable) shall cooperate with Costco in recording such document. Agency, on its own behalf
and on behalf of each of Agency's Entities, acknowledges that the breach of the foregoing restrictive
covenant may cause immediate and irreparable harm for which damages are not an adequate remedy
and that, to protect against such harm, Costco may seek and obtain from a court of competent jurisdiction
the issuance of a restraining order or injunction to prohibit any actual or threatened breach. Such an
action for a restraining order or injunction is in addition to and does not limit any and all other
remedies provided by law or equity.
301188995.3
19
Costco Wholesale Salaries I Glassdoor.com
January 19, 2011
To the Ukiah City Council:
You are scheduled today (Jan. 19t") to approve, in secret session, an Exclusive Negotiating Agreement
with Costco. Most of your fellow citizens are at a loss to understand why you would sell 15 acres of
land bought with Redevelopment Funds to a retail emporium when it is well established that our real
need is affordable housing, not more stores. We hold you answerable to us for your actions and ask for
your response to the following questions:
Why is it OK in your view to place a Big Box Retail Outlet in Ukiah after we the voters resoundingly
defeated such a Big Box Complex at the Masonite site (1 mile north of town) by a 62 to 32% vote just
3 months ago? Did you somehow fail to hear the voice of the people?
How can you accept the loss of local jobs and the demise of local business that will inevitably result if
CostCo moves in? How can you explain this to those local merchants who are the likely victims: food
stores, clothing stores, opticians, hearing aid suppliers, tire shops, druggists, florists, and book stores?
We do not suffer from a shortage of local stores meeting these local needs and returning far more to the
community than out-of--state monsters like CostCo and WalMart. We can see from the experience of
other small towns that when the local market fails to meet their profit forecasts, the Big Boxers nail
shut the doors and quickly get out of town. We will regret out gullibility and like a jilted bride sadly
survey the abandoned stores along State Street and School Street that the once-welcomed groom has
left as his only legacy.
You chose to invest $2.74 million to buy this 18 acre parecel of land suitable for retail enterprises with
our redevelopment funds when our most obvious real need was affordable housing? If CostCo does
buy 15 acres of this parcel, what will you do with this money? We have hundreds of low income
working families now living in very small converted motel rooms south of downtown and in
dilapidated shacks and old mobile homes in South Ukiah and Calpella. We happily exploit these
workers in our vineyards and business enterprises. May we have your commitment that the proceeds
from this sale will be invested in the construction of affordable housing, not in another unneeded retail
complex? How can we trust your word? Will you now respond to the community's real human needs
rather than to the selfish complaints of our higher income citizens for a little more convenience in
shopping?
James Houle
Member of the County Council of the Green Party
3 of 3 1/19/20115:38 AM
City of -Zlk?ah
ITEM NO.: 11a
MEETING DATE:
AGENDA SUMMARY REPORT
January 19, 2011
SUBJECT: DISCUSSION AND POSSIBLE APPROVAL OF STREETLIGHT POLE LICENSE FOR
PG&E SMARTMETER EQUIPMENT
SUMMARY: PG&E has requested permission to locate on two City streetlight poles equipment
that supports its SmartMeter system for reading natural gas meters in the City. The equipment on
each pole would consist of a data collector unit, two whip antennas, coaxial cable and photovoltaic
adaptor. The data collectors receive transmissions from SmartMeters measuring natural gas use
in the City and assist in the transmission of that data to PG&E.
The attached license agreement will allow PG&E to install the equipment on two streetlight poles:
one at 53 Betty Street and one on West Clay Street. The license agreement would allow City staff
to permit PG&E to place additional data collection units on other streetlight poles in the future.
To justify the capital expense, the City agrees not to revoke the license for the first five years,
unless PG&E is in material breach of the agreement. After the first five years, the City can revoke
the permit on 180 days prior written notice to PG&E.
PG&E will pay $780 as an upfront payment for each of the two streetlight poles ($780 x 2 = $1560)
and for each additional pole it is allowed to use in the future ($780 x ea. Pole).
Recommended Action(s): Approve the agreement or provide direction to staff regarding the terms
of the agreement.
Alternative Council Option(s): Decline to approve the agreement.
Citizens advised: n/a
Requested by: PG&E
Prepared by: David J. Rapport, City Attorney
Coordinated with: Jane Chambers, City Manager; Mel Grandi, Electric Utility Director
Attachments: 1- Draft License Agreement
2- Ex. A to License Agreement
3- SmartMeter Program
4- SmartMeter Program Overview
5- Approved Radio Frequency Pamphlet
Approved: G
J p Chambers, City Manager
ATTACHMENT I
AGREEMENT NO.
STREETLIGHT LICENSE AGREEMENT
THIS AGREEMENT is made and entered into on , by and
between the CITY OF Ukiah a general law municipal corporation, ("CITY" herein)
and PACIFIC GAS AND ELECTRIC COMPANY, a California corporation ("PG&E"
herein) each being referred to individually as a "Party" and collectively as the
"Parties."
RECITALS
WHEREAS, CITY owns, operates and maintains certain streetlight facilities
located in the geographic areas within the political jurisdiction of CITY; and
WHEREAS, PG&E desires to enter into an Agreement for the attachment of
certain utility infrastructure support equipment used for the operation and
maintenance of PG&E's SmartMeter network, to CITY's existing streetlight poles;
and
WHEREAS, PG&E's SmartMeter equipment consists of certain utility infrastructure
support equipment including, but not limited to, a data collector unit, two whip
antennas, coaxial cable and photovoltaic adaptor ("SmartMeter Equipment"); and
WHEREAS, it is understood and agreed that this Agreement will permit the
placement of the SmartMeter equipment on certain of CITY's existing streetlight
poles; and
WHEREAS, CITY is willing to grant PG&E a non-exclusive, revocable license for
the attachment of the SmartMeter Equipment to CITY streetlight poles, subject to
the terms and conditions set forth in this License Agreement.
NOW, THEREFORE, incorporating the foregoing recitals herein, the Parties agree
as follows:
1. EFFECTIVE TERM OF AGREEMENT. This Agreement shall be
and remain until terminated in accordance with paragraph 21.
2. STREETLIGHT LICENSE. CITY does hereby confer on PG&E a
non-exclusive, revocable license to attach, replace, operate, maintain, and use
SmartMeter Equipment to certain photocells, support arms and streetlight pole(s)
owned by CITY. Permission to attach to CITY-owned streetlight facilities shall be
memorialized in the form of the Streetlight Permit, attached to this Agreement as
Exhibit "A," and incorporated herein by reference. The specific locations for
which a Streetlight Permit is requested are included in Exhibit A, and are those
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SM Streetlight License Agmt Template v14- 4_13_10
specific locations that the Parties hereby agree are covered by this Agreement as
of the date the Streetlight Permit is executed.
3. LICENSE FEE. As its entire consideration for the rights granted
herein, PG&E shall pay to CITY a one-time Seven Hundred and Eighty DOLLAR
($780) up front payment for each street light pole to which PG&E attaches its
SmartMeter Equipment.
3:23_1 PG&E shall pay CITY a pro-rata portion of the Seven [[ormatted: Bullets and Numbering
Hundred and Eighty ($780) dollar attachment fee for all additional attachments
installed under the terms of this agreement.
x.33_2 All payment obligations associated with the renewals of this- - Formatted: Bullets and Numbering
agreement under §1.1 will be prorated in accordance with the payment obligations
of §3 herein.
3.43_3 PG&E will provide a revised list of locations ("Exhibit A") as' Formatted: Bullets and Numbering
poles are added or deleted.
4. ADDITIONAL LOCATIONS. Prior to installing any SmartMeter
Equipment on any additional CITY-owned street light poles, other than the
locations identified in Exhibit "A", PG&E will submit to CITY a revised Exhibit "A"
seeking permission to install such additional SmartMeter Equipment on specified
CITY-owned street light poles.
4.1 CITY will use its best commercially reasonable efforts to
respond, in writing, to each request submitted by PG&E within twenty (20)
business days; provided that CITY is not required to approve, in whole or part.
4.2 Each location approved by the CITY shall be memorialized in
a Street Light Permit in the form of Exhibit "A" to this Agreement, and shall be
incorporated by reference herein at the time it is executed and delivered.
4.3 PG&E may, from time to time, replace, modify, update and/or
reposition on the same street light pole existing SmartMeter Equipment without
seeking CITY's prior approval and without incurring additional fees.
5. SAFETY PRECAUTIONS. PG&E shall perform all work on CITY-
owned streetlight facilities in a workmanlike manner and in compliance with
applicable federal, state, and local laws, rules and regulations. All work on such
streetlight facilities shall be performed by PG&E's personnel or contractor
operating from either a ladder or bucket truck.
6. NON-INTERFERENCE. PG&E shall install, operate and maintain the
SmartMeter Equipment in such manner that it does not interfere with the City's use
of the streetlight facilities on which the PG&E equipment is licensed or any other
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SM Streetlight License Agmt Template v14- 4_13_10
City property, facilities or equipment. City shall provide PG&E with written notice, if
its equipment or its use causes such interference. Within ten (10) days that such
notice is given, PG&E shall take such steps as are necessary to avoid or
discontinue such interference. If PG&E fails to take such steps within the required
time period, the City may terminate this license immediately or take such steps at
PG&E's expense as are necessary to avoid or discontinue such intereference.
7. PERMITS. PG&E shall apply for and receive any encroachment or
other permits required by the City for the PG&E's use of the license granted herein
or the installation and use of its SmartMeter Equipment.
6-.8. RADIO FREQUENCY EMISSION REQUIREMENTS. PG&E will -
- Formatted: Bullets and Numbering
operate the PG&E SmartMeter Equipment in a manner that complies with the
FCC's (or any more restrictive applicable standard subsequently adopted or
promulgated by a governmental agency with jurisdiction) Maximum Permissible
Exposure (MPE) limits for electric and magnetic field strength and power for
density for transmitters in an inhabited area.
7-.9. REMOVAL OF SMARTMETER EQUIPMENT. CITY will use its best---
Formatted: Bullets and Numbering
commercially reasonable efforts to provide PG&E ten (10) business days prior
written notice of any non-emergency work that will, or may, affect the SmartMeter
Equipment and/or the PG&E SmartMeter network.
7-4991 In the event that CITY is required by law or unavoidable--
- Formatted: Bullets and Numbering
circumstance to remove any SmartMeter Equipment attached to CITY Property on
an emergency basis, CITY will use its best commercially reasonable efforts to
notify PG&E of such circumstance as soon as practicable and will take all due care
in removing and storing the SmartMeter Equipment.
79_2 PG&E will provide CITY written notice within ten (10) business--
{Formatted: Bulletsand Numbering
days of removing any SmartMeter Equipment from any CITY Property specifying
the SmartMeter Equipment removed and the CITY Property from which it was
removed.
7-.39_3 PG&E will, at its expense, remove all remaining SmartMeter -
- Formatted: Bullets and Numbering
Equipment from CITY Property within thirty (30) days of the termination or
expiration of this Agreement.
7-.49.41n the event that PG&E fails to remove any SmartMeter
- Formatted: Bullets and Numbering
Equipment from the CITY Property in a timely manner, CITY may at PG&E's
expense, remove and store such SmartMeter Equipment.
8. INDEMNITY. PG&E shall indemnify, defend, and hold harmless
CITY, its officers, agents and employees from and against any and all cost,
expense, liability, claims, actions, causes of action or demands whatsoever against
Page 3 of 8
SM Streetlight License Agmt Template v14- 4_13_10
them, or any of them, before administrative or judicial tribunals of any kind
whatsoever, arising out of, connected with, or caused by PG&E, PG&E's
employees, agents, independent contractors, companies, or subcontractors in the
performance of, or in any way arising from, the terms and provisions of this
Agreement whether or not caused in part by a party indemnified hereunder, except
for any such claims, damage or liabilities caused by CITY's sole and active
negligence or willful misconduct. It is further understood and agreed by PG&E that
its liability to the CITY shall not in any way be limited to or affected by the amount
of insurance obtained and carried by the PG&E in connection with this Agreement.
9. ASSIGNMENT. Neither this Agreement, nor any interest in it, may
be assigned or transferred by any party without the prior written consent of the
parties, which shall not be unreasonably withheld.
10. BINDING EFFECT. The rights and obligations of this Agreement
shall inure to the benefit of, and be binding upon, the parties to the Agreement and
their administrators, representatives, successors and assigns.
11. COMPLIANCE WITH ALL LAWS. PG&E shall, at PG&E's sole cost,
comply with all of the requirements of Municipal, State, and Federal authorities
now in force, or which may hereafter be in force, pertaining to this Agreement, and
shall faithfully observe in all activities relating to or growing out of this Agreement
all Municipal ordinances and State and Federal statutes, rules or regulations, and
permitting requirements now in force or which may hereafter be in force.
12. CORPORATE AUTHORITY. Each individual signing this Agreement
on behalf of entities represent and warrant that they are, respectively, duly
authorized to sign on behalf of the entities and to bind the entities fully to each and
all of the obligations set forth in this Agreement.
13. EXHIBIT. In the event of a conflict between the terms, conditions or
specifications set forth in this Agreement and the exhibit attached hereto, the
terms, conditions, or specifications set forth in this Agreement shall prevail. The
exhibit to which reference is made in this Agreement are deemed incorporated in
this Agreement, whether or not actually attached.
14. GOVERNING LAW. The laws of the State of California will govern
the validity of this Agreement, its interpretation and performance.
15. FURTHER ASSURANCES. Each party shall execute and deliver
such papers, documents, and instruments, and perform such acts as are
necessary or appropriate, to implement the terms of this Agreement and the intent
of the parties to this Agreement.
Page 4 of 8
SM Streetlight License Agmt Template v14- 4_13_10
16. INSURANCE. PG&E shall procure and maintain for the duration of
this Agreement the following types and limits of insurance or self-insurance ("basic
insurance requirements") herein:
16.1 Automobile liability insurance, providing coverage on an
occurrence basis for bodily injury, including death, of one or more persons,
property damage and personal injury, with limits of not less than One Million
Dollars ($1,000,000) per occurrence; and the policy shall:
16.1.1 Provide coverage for owned, non-owned and hired
autos.
16.2 Broad form commercial general liability insurance, unless
otherwise approved by the CITY's Risk Manager, providing coverage on an
occurrence basis for bodily injury, including death, of one or more persons,
property damage and personal injury, with limits of not less than One Million
Dollars ($1,000,000) per occurrence; and the policy shall:
16.2.1 Provide contractual liability coverage for the terms of
this agreement.
16.2.2 Provide products & completed operations coverage.
16.3 Workers' compensation insurance with statutory limits and
employer's liability insurance with limits of not less than One Million Dollars
($1,000,000) per accident...
16.4 All policies required of PG&E shall be primary insurance as to
the CITY, its mayor, council, officers, agents, employees, or designated volunteers
and any insurance or self-insurance maintained by the CITY, its mayor, council,
officers, agents, employees, and designated volunteers shall be excess of the
PG&E's insurance and shall not contribute with it.
16.5 Except for workers' compensation, insurance is to be placed
with insurers with a Bests' rating as approved by CITY's Risk Manager, but in no
event less than A:V.
16.6 Unless otherwise approved by CITY's Risk Manager, all
policies shall contain an endorsement providing the CITY with thirty (30) days
written notice of cancellation or material change in policy language or terms. All
policies shall provide that there shall be continuing liability thereon, notwithstanding
any recovery on any policy.
16.7 The insurance required hereunder shall be maintained until all
work required to be performed by this Agreement is satisfactorily completed as
evidenced by written acceptance by the CITY.
Page 5 of 8
SM Streetlight License Agmt Template v14- 4_13_10
16.8 Full compensation for all premiums which PG&E is required to
pay on all the insurance described herein shall be considered as included in the
prices paid for the various items of work to be performed under the Agreement,
and no additional allowance will be made for additional premiums which may be
required by extensions of the policies of insurance.
16.9 PG&E shall have the right to self insure with respect to any of
he insurance requirements required under this Agreement. By request. PG&E
shall submit a letter of self-insurance signed by a duly authorized representative
evidencing that the self-insurance program is in full force and effect and in
compliance with and subiect to all the terms, agreements, covenants, conditions
and provisions of the Agreement.
17. MERGER AND MODIFICATION. All prior agreements between the
parties are incorporated in this License Agreement which constitutes the entire
agreement. Its terms are intended by the parties as a final expression of their
agreement with respect to such terms as are included herein and may not be
contradicted by evidence of any prior agreement or contemporaneous oral
agreement. The parties further intend this License Agreement constitutes the
complete and exclusive statement of its terms and no extrinsic evidence
whatsoever may be introduced in any judicial or arbitration proceeding involving
this License Agreement. This License Agreement may be modified only in a
writing approved and signed by all the parties.
18. NEGATION OF PARTNERSHIP. CITY shall not become or be
deemed a partner or joint venture with PG&E or associate in any such relationship
with PG&E by reason of the provisions of this License Agreement. PG&E shall not
for any purpose be considered an agent, officer or employee of CITY.
19. NO WAIVER OF DEFAULT. The failure of any party to enforce
against another party any provision of this Agreement shall not constitute a waiver
of that party's right to enforce such a provision at a later time, and shall not serve
to vary the terms of this Agreement. The acceptance of work or services, or
payment for work or services, by CITY shall not constitute a waiver of any
provisions of this Agreement.
20. NOTICES. All notices relative to this Agreement shall be given in
writing and shall be personally served or sent by certified or registered mail and be
effective upon actual personal service or depositing in the United States mail. The
parties shall be addressed as follows, or at any other address designated by
notice:
CITY: CITY OF UKIAH
Page 6 of 8
SM Streetlight License Agmt Template v14- 4_13_10
PG&E: Pacific Gas and Electric Company
Land and Environmental Management
c/o Dawn Plise
5555 Florin Perkins Road
Sacramento, CA 94015
21. TERMINATION. The parties hereto agree that either party may
terminate this Agreement, as it relates to any individual location of the SmartMeter
Equipment, upon one hundred eighty (180) days advance written notice to the
other party. City agrees that it will not terminate this agreement within the first five
(5) years and PG&E relies on this representation as a basis for the capital
expenditure associated with the facility installations, unless PG & E is committed a
material breach of this License Agreement. With this exception, either party may
terminate this Agreement in its entirety, at any time during the term hereof by
giving written notice to the other party, not less than six (6) months prior to the
requested date of such termination. Any termination of this Agreement shall not
relieve PG&E of any obligations, whether of indemnity or otherwise, which have
accrued prior to such termination or completion of removal of PG&E's equipment,
whichever is later, or which arises out of an occurrence happening prior thereto.
21.1 Except as specifically set forth herein, CITY and PG&E agree
that neither Party shall terminate this Agreement in the event of an
alleged non-monetary breach nor default hereunder before the
defaulting Party has been given notice of and a reasonable time and
opportunity to respond to and cure any such non-monetary breach or
default. For purposes of the foregoing, unless otherwise expressly
provided in this agreement, a reasonable time to cure any non-
monetary breach or default shall be deemed to be thirty (30) days
after notice, unless the nature of the default in question is such that
while it is reasonably susceptible of being cured, it is not reasonably
susceptible of being cured within such thirty (30) day period, in which
case the curing thereof shall have commenced within such thirty (30)
day period and shall hereafter be prosecuted to completion with
reasonable diligence.
Page 7 of 8
SM Streetlight License Agmt Template 04- 4_13_10
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
executed, the day and year first-above written.
CITY OF
By:
PACIFIC GAS & ELECTRIC COMPANY
By:
Richard A Gigliotti
Title:
Manager, Land Surveying and Acquisition
Land and Environmental Management
Attachment: Exhibit "A" - Streetlight License
Page 8 of 8
SM Streetlight License Agmt Template v14- 4_13_10
ATTACHMENT
Pacific Gas and
Electric Company.
11P _
EXHIBIT A
STREET LIGHT and UTILITY POLE PERMIT
PART I REQUEST FOR AC'CIsS'S
To: CITY OF UKIAH
Street: 300 Seminary Avenue
Ukiah, CA 95482
Date:
In accordance with that certain Revocable Permit Agreement between the City of UKIAH C'CITY'~ and PG&E dated
(the "Agreement's we hereby request permission to place attachments on the CITY streetlight designated below.
1. Location of the streetlights:
GAS
20420 53 BETTY ST
20421 V %1 CLAY ST
2. Schematic drawing of the attachments to be contacted under this permit are attached. Location of the streetlight shown
as a • on the map attached.
Permittee: Pacific Gas and Electric Company
Authorizing Engineer Name: Bill Monlux Company or Department: SmartMeter Operations
Address: 1850 Gateway Blvd, Concord, CA 94520 Phone # (925) 270-2819
PART 2 AUTHORIZATION
Subject to the terms and conditions of the Agreement, you are hereby authorized to install the attachments described in this
Exhibit.
CITY OF UKIAH
BY: Execution Date:
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How will the SmartMeter program
support public policy objectives?
The SmartMeter program supports several
important public policy objectives: increased
grid reliability, reduced procurement costs,
reduced environmental impact, and better
customer service.
Over the next several years, the
SmartMeter program promises to lower
peak electricity demand by enabling
voluntary rates that encourage customers to
shift electric use away from periods when
demand for energy is greatest (e.g. summer
afternoons). These voluntary rates will be
available to customers with SmartMeter
electric meters as soon as summer 2008.
Reductions in peak electricity demand
support three important policy objectives.
Increased grid reliability: Lower peak
demand reduces strain on the electric grid,
thereby enhancing grid reliability. Greater
grid reliability means fewer energy outages.
Reduced procurement costs: It is very
expensive to buy or generate electricity
during peak periods. Lower peak demand
reduces the need to procure expensive
electricity and lowers the average cost of
electricity overall.
January 2008
ATT ACIAI\AEi •1T
Reduced environmental impact: Lower
peak electricity demand reduces the need to
use less environmentally friendly generation
facilities, thereby reducing emissions of
carbon dioxide and other potentially harmful
gases.
In addition, the SmartMeter program will
enable a number of improvements in
customer service. For example, the
information made available by the network
will allow more precise outage detection and
enable faster power restoration. The
SmartMeter system will also improve billing
and metering service, and make meter
reading more convenient for customers and
the community.
In the long run, the core infrastructure put in
place through the SmartMeter program may
enable a range of new service offerings that
will not only reduce peak demand, but can
lead to lower energy use generally.
Emerging innovations such as home energy
management systems, building automation,
and direct load control could utilize
information communicated through an
advanced SmartMeter infrastructure.
Automated metering - and the management
of energy demand it will enable - is a
cornerstone of California's effort to lead in
the area of sustainable development.
How is the SmartMeter infrastructure different from WiFi
infrastructure?
Both the SmartMeter system and WiFi
are communications networks based on
radio frequency technology. In this, they
are similar. In a more important respect,
however, the SmartMeter program and
WiFi are very different. The SmartMeter
program is an upgrade to PG&E's
existing utility infrastructure. As such, it
is an extension to a core infrastructure
that is publicly authorized and regulated
to serve the common good. It is
comparable to upgrades to other publicly
provided essential service infrastructures
such as streets, water treatment
facilities, and emergency services.
SmartMeter is a public benefit program -
an extension of the regulatory mandate
to provide reliable electric service to the
communities of Northern and Central
California.
WiFi vendors operate under a much
different mission and framework. As
private businesses, they lack a mandate
to serve the public good and are free to
charge their customers whatever the
market will bear. Although both the
SmartMeter program and WiFi leverage
the same technology, they do so toward
very different ends.
January 2008
P6 E
S Nit leter
July 2008
PG E
art leter
Sm
PG&E's SmartMeter program is the largest
and among the most advanced deployments of
automated metering infrastructure (AMI)
technology in the United States to date.
Through 2011, we are deploying 10.3 million
SmartMeter gas and electric meters, a
supporting communications network, and back-
end systems to deliver SmartMeter capability
to all of the millions of customers we serve.
The SmartMeter system will collect customer
energy use data automatically and on a much
more frequent basis. Traditionally, PG&E has
used meter readers to manually collect data on
customer energy use once a month for both
gas and electric. With SmartMeter, we will
automatically collect customer energy use data
at much shorter intervals - once an hour or
every minutes for electric, and daily for gas.
Why is PG&E implementing the SmartMeter
program?
California has a long history of innovation in
energy. The state leads in energy conservation
with among the lowest per capita energy
consumption in the nation. It has managed to
hold per capita energy consumption flat in spite
of tremendous economic growth - this, at a
time when per capita energy consumption
across the country has increased substantially.
The introduction of automated metering to
customers is just another example of
California's innovation in energy.
ATTACHMENT_
As a result of the energy crisis of the early
2000s, the CPUC recognized the need to
provide energy customers information on the
cost of the energy they consume. Today most
customers pay a fixed price for electricity, even
though the cost of electricity varies
substantially over the course of the day and
year. The cost is much greater during peak
times - for example, between 2 and 7 on
summer afternoons. Automated metering
allows utilities to track energy use by time
interval and provide customers information on
the true cost impact of their electricity use.
When coupled with rates and incentives, this
information promises to motivate customers to
conserve or shift their energy use to other
times of the day. This closer linkage between
energy supply and energy demand will create a
number of benefits for our customers, the
State, and our communities, as outlined below.
In addition, the SmartMeter program puts in
place a core platform that will enable California
to develop an advanced, high-tech electric grid
of the future - what we call a Smart Grid.
Although it will take years to evolve, this Smart
Grid will support an expanded range of
products and service offerings, enhanced
customer service, streamlined operations, and
environmental benefits.
What is the SmartMeter program?
July 2008
How does the SmartMeter program benefit
customers?
The SmartMeter system will enable PG&E to
improve operations and provide our customers
enhanced customer service. With the
SmartMeter program, customers will benefit
from:
Fewer interruptions: We'll collect meter data
without setting foot on our customers'
properties or interrupting their schedules.
Faster power restoration: We'll be able to
pinpoint power outages and restore our
customers' power faster.
Faster problem resolution: We'll be able to
resolve service problems more easily and, in
many cases, without sending service personnel
to visit the customers' homes or businesses.
Better billing: Because we no longer have to
depend on in-person meter readings, we'll no
longer have to estimate customers' bills when
we can't access their meters.
In addition, the SmartMeter system will enable
PG&E to provide customers greater choice and
control. With the interval data collected
through the SmartMeter system, we will be
able to offer our customers new time-of-day
electric pricing plans. These plans create
opportunities for customers to save by
modifying how much electricity they use, and
when they use it. To the extent they conserve
of shift their energy use away from times of
highest electric demand (and prices), customer
can save on their energy bills.
Finally, we will provide our customers the
ability to monitor their own energy use via the
Internet and see when they are using the most
energy. We will offer customers on-line tools to
support their decisions on how and when to
use energy. When coupled with time-of-day
electric pricing plans, on-line energy use data
will deliver our customers the understanding
they need to more actively manage their
energy use, and save.
How does the SmartMeter system benefit
California?
The SmartMeter system will enable a range of
new tools - both pricing plans and enabling
technologies - through which regulators and
grid operators can influence energy demand.
Using these new tools, regulators and grid
operators will be better able to ensure that
energy supplies and demands are in balance.
The result is an increase in system reliability
and a reduction in average energy procurement
costs, both of which benefit the State's
economy and its citizens. In addition, better
alignment between electric supply and demand
can yield positive environmental benefits for the
State in the form of fewer power plants, less
frequent use of older, inefficient (and dirtier)
power plants, and an increased useful life for
existing transmission and distribution
equipment.
PG E
Smart ,ever
July 2008
PG E z
Smart l f
How does the SmartMeter system benefit
our communities?
The SmartMeter program will benefit
community efforts to plan for and foster
sustainable development. Community leaders
can leverage energy use data aggregated to
the neighborhood and community levels to
identify and promote opportunities to make
their communities more sustainable in a
number of ways, including: improving land use;
recognizing opportunities for local, renewable
generation; supporting energy efficiency; and,
promoting conservation.
How does SmartMeter technology work?
In our SmartMeter program, we work hard to
ensure we are leveraging the latest advances
in automated metering technologies while at
the same time ensuring that the technologies
we deploy are cost-effective, reliable, and
robust. To this end, PG&E is currently
deploying a radio frequency (RF) technology
for both gas and electric.
Each SmartMeter gas and electric meter is
outfitted with a module that records customer
energy use on a defined schedule - hourly for
residential electric, 15 minute intervals for
commercial electric, and daily for gas.
Periodically, this SmartMeter module sends
recorded energy use information over a radio
frequency signal to a nearby data collection
unit, typically a small box mounted on a
neighborhood streetlight. This data collector
unit bundles the data from multiple meters and
sends it to PG&E using a public network,
typically a wireless network. At PG&E, this
energy usage data is stored in a centralized
data warehouse, where it is validated and
made available for use in a wide range of back-
end IT systems, including billing.
How does the SmartMeter program support
California's energy future?
The SmartMeter program puts in place a core
infrastructure that will enable a new energy
future for California. When upgraded with
advanced capabilities, the SmartMeter electric
system will enable such innovations as:
Home energy management systems that
automatically adjust energy use to account for
its cost, thereby enabling customers to achieve
a desired balance between comfort and
convenience on the one hand, and cost on the
other.
Widespread deployment of distributed
generation and storage that will provide
customers the opportunity to draw electricity
from the grid when it is cheapest (at night) and
feed it back into the grid when it is more
expensive (late afternoons). In this way,
customers can minimize their average cost of
electricity and maximize the benefit they
receive from on-site distributed generation.
SmPG E
art deterN
Electric and plug-in hybrid electric vehicles
that charge when electric prices are at their
lowest (at night) and have the potential to feed
electricity back into the grid when electric
prices are at their highest (late afternoons).
Over time, the SmartMeter program will enable
PG&E to transform its relationship with
customers. Through SmartMeter, we will be
able to give our customers the tools and the
know-how to be smarter energy consumers in a
world where we all will be more aware of and
engaged in our energy choices.
July 2008
ATTACHMENT
June 2008
P6 E
art
Sm
Pacific Gas and Electric Company's
SmartMeter gas equipment consists of a
ACLARA Company STAR® Meter
Transmission Unit (MTU) and a STAR®
Data Collector Unit (DCU). MTUs are
mounted to gas meters. DCUs are
mounted to distribution poles, street lights,
or transmission towers. Both MTUs and
DCUs emit radio frequencies in the 460
Mhz region. The SmartMeter network is
operated under a license with the Federal
Communication Commission (FCC) and
complies with all rules concerning radio
frequency interference
The equipment used in the SmartMeter
gas network (supplied by Aclara
Company) has been certified by the FCC
to comply with Part 15 and Part 90 of the
FCC Rules.
Part 15 and Part 90 set limits to provide
reasonable protection against harmful
radio frequency interference. Part 15 sets
standards for radio frequency equipment
typically used in the home, like cordless
phones. Part 90 sets more stringent
standards that apply to applications used
in commercial settings. Compliance with
the FCC License requires strict adherence
to regulations that apply - but are not
limited to - assigned frequency band,
authorized bandwidth, frequency stability,
effective radiated power, and harmful
interference.
The MTUs and DCUs are designed to
operate in the 450-470 Mhz range.
Standards set a maximum power density
these devices can use when operating in
this frequency range. The MTUs and
DCUs radiate radio frequency energy at
extremely low levels-a small fraction of
the limit set by national standards. And
they do not transmit continuously. Instead,
they transmit low-power radio frequency
transmissions in short bursts. DCU
transmission bursts last a maximum of
150 milliseconds and occur no more than
once every 15 minutes. MTU transmission
bursts last a maximum of 180 milliseconds
and are currently scheduled to occur
every 4-6 hours.
SmartMeter MTU and DCU equipment
generates, uses, and can radiate radio
frequency energy. When used in
accordance with instructions, the
equipment does not interfere with radio or
television reception. In some infrequent
instances the equipment can fail and
cause interference. In these instances,
PG&E will be responsible for investigating
and mitigating the interference.
ITEM NO.:
MEETING DATE:
City o f.'Zlkiah
AGENDA SUMMARY REPORT
llb
January 19, 2011
SUBJECT: AWARD OF THE PURCHASE OF SIX PADMOUNTED VACUUM FAULT
INTERRUPTERS (VFI) SWITCHGEAR NEEDED FOR THE ORCHARD
SUBSTATION PROJECT AND THE ELECTRIC SYSTEM RELIABILITY
IMPROVEMENTS FROM HD SUPPLY UTILITIES IN PORTLAND, OREGON IN
THE AMOUNT OF $141,081.00.
Staff is requesting authorization to purchase six Vacuum Fault Interrupters (VFI) style
Padmounted Switchgear from Cooper Power Systems, Inc. The switchgear will be used to
improve system reliability and reduce customer restoration time during outages. Projects utilizing
this equipment will include the new substation, Low Gap circuit and Perkins circuit.
Background: The Ukiah Electric Utility has exclusively used this manufacture's design of pad
mounted switchgear to facilitate normal and emergency field operations. This is based on the
compatibility with our existing system, personnel familiarity to operate and trouble shoot
equipment during emergencies, operational history, and staff training of equipment controls. The
12,000 Volt switchgear is designed with the combination of 600 amp switched positions and 200
amp breaker protected positions with individual programmable logic controllers.
Cooper Power Systems has only one authorized distributor for Northern California and Nevada,
which is HD Supply Utilities located in Portland Oregon. Therefore, it is staff's recommendation to
authorize the purchase of six Vacuum Fault Interrupters (VFI) style Padmounted Switchgear for
the Electric System Reliability Improvements.
Fiscal Impact:
❑X Budgeted FY 09/10 1-1 New Appropriation Not Applicable Budget Amendment Required
Amount Budgeted Source of Funds (title & Account Number Additional Appropriation Requested
$490,000.00 Underground Maint. 800.3729.930.000
Recommended Action(s): : AWARD OF THE PURCHASE OF SIX PADMOUNTED VACUUM
FAULT INTERRUPTERS (VFI) SWITCHGEAR NEEDED FOR THE ORCHARD
SUBSTATION PROJECT AND THE ELECTRIC SYSTEM RELIABILITY IMPROVEMENTS
FROM HD SUPPLY UTILITIES IN PORTLAND, OREGON IN THE AMOUNT OF
$141,081.00.
Alternative Council Option(s): (1) Reject Bids; (2) Provide Staff with other direction.
Citizens advised: n/a
Requested by: Mel Grandi, Electric Utility Director, Jim Bauer, Electric Distribution Engineer
Prepared by: Mary Williamson, Buyer
Coordinated with: Mary Horger, Purchasing Supervisor and Jane Chambers, City Manager
Attachments: Cooper Power Systems Quote
Approved: `~O''~'liL.-~C . 1~-tip
Ja Chambers, City Manager
ATTACHMENT /
COO ER Power Systems
c/o HD Supply Utilities, Ltd.
P.O. Box 82549
Portland, Oregon 97282-0549
PH: (800) 547-9490
Fax:(503) 653-2279
To: CITY OF UKIAH
Attn. JIM BAUER
uc. iviar vv iinambui i
QUOTATION
Date: 1/6/2011
Bid Validity: 30-DAYS
Terms: NET- 30 DAYS
MFG.: COOPER
WHOLESALE DISTRIBUTORS OF ELECTRICAL APPARATUS, SUPPLIES AND CONSUMER PR
ODUCTS
Item
Quantity
Description
Shipment
Price
Unit
Total
3
VFI-11, 15kv, 3-phase Padmounted
10-wks
$22,596.00
ea
$67,788.00
ARO
Sea. 600am , 3-phase source
lea. 200am , 3-phase VFI taps w/ Wells
3-phase an operated tripping on VFI tap.
Visible Break 2-way OPEN/CLOSE
Mild Steel Construction
Tri-Phase Control w/ "EF" TCC.
Provisions for Fault Indicators
Note: Source & Tap compartments are 22"
deep, and will accommodate 600am T-Bod
ies
Piggy-Backed together.
3
VFI-9, 15kv, 3-phase Padmounted
10-wks
$24,431.00
ea
$73,293.00
Switch. Oil insulated.
ARO
2ea. 600am , 3-phase source
2ea. 200am , 3-phase VFI taps w/ Wells
3-phase an operated tripping on VFI tap.
Visible Break 2-way OPEN/CLOSE
Mild Steel Construction
Tri-Phase Control w/ "EF" TCC.
Provisions for Fault Indicators
Note: Source & Tap compartments are 22"
deep, and will accommodate 600am T-Bod
ies
Pi -Backed together.
PO should be made out to:
Cooper Power Systems c/o HD Supply
Cooper Power will bill you
Fax or send me a co of PO for processing.
Page -1
Page-2
Item Quantity Description Shipment Price Unit Total
PO should be made out to Cooper Power
Systems c/o HD Supply
Cooper Power will bill you
Fax or send me a co of PO for processing.
GRAND TOTAL $141,081.00
Delivery: F.O.B. Destination
Subject to published standard conditions applying to all transactions. The seller affirms that to the best of its knowledge,
information and belief, the prices quoted here do not exceed any applicable ceiling price established by law. Prices quoted
those currently in effect and are subject to adjust to the sellers prices in effect at time of shipment.
WE HOPE WE SHALL BE FAVORED WITH YOUR ORDER AND ASSURE YOU OF OUR PROMPT ATTENTION.
BY
David Foreman, Sales Agent
city vJ"'ZIkiah
ITEM NO.: 11 c
MEETING DATE: January 19, 2011
AGENDA SUMMARY REPORT
SUBJECT: ADOPTION OF POLICY RESOLUTION ESTABLISHING THE AGENDA ORDER FOR
COUNCIL MEETINGS
Background:
At the January 5, 2011, meeting, Mayor Rodin suggested changing the order of the agenda by moving
Council Reports and City Manager/City Clerk Reports before Audience Comments on Non-agenda Items.
This change is to provide the audience an earlier opportunity to hear these reports.
Discussion:
According to the City of Ukiah City Council Meeting Procedure of City Council Decorum, last adopted by
resolution 2006-04, Section 2, Agenda II Order of Business, Council is required to adopt a resolution
establishing the order of its Agenda.
Fiscal Impact:
F-1 Budgeted FY 08/09 F-1 New Appropriation Not Applicable Budget Amendment Required
Recommended Action(s): Adopt Policy Resolution establishing the Agenda order for City Council
meetings.
Alternative Council Option(s): Leave the Agenda order as is.
Citizens advised: N/A
Requested by: Mayor Rodin
Prepared by: JoAnne M. Currie, City Clerk
Coordinated with:
Attachments: 1. Draft Policy Resolution establishing Ukiah City Council Meeting Agenda Order
Approved:
Ja Chambers, City Manager
7
ATTACHMENT L
POLICY RESOLUTION NO.
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF UKIAH
ESTABLISHING THE AGENDA ORDER FOR COUNCIL MEETINGS IN ACCORDANCE WITH
THE REQUIREMENTS OF THE PROCEDURES OF
CONDUCT FOR CITY COUNCIL MEETINGS
WHEREAS, The City of Ukiah City Council Meeting Procedure of City Council Decorum
section 2. Agenda II Order of Business requires the Council to adopt a resolution establishing the
Order of its Agenda; and
WHEREAS, the City Council desires to amend the Order of Agenda.
NOW THEREFORE BE IT RESOLVED, that the City Council of the City of Ukiah establishes
the following Order of Agenda for City Council meetings:
1. Roll Call
2. Pledge of Allegiance
3. Proclamations/Introductions/Presentations
4. Petitions and Communications
5. Approval of Minutes
6. Right to Appeal Decision
7. Consent Calendar
8. Audience Comments on Non-Agenda Items
9. Public Hearings - Timed at 6:15 P.M.
10. Unfinished Business
11. New Business
12. Council Reports
13. City Manager/City Clerk
14. Closed Session
15. Adjournment
BE IT FURTHER RESOLVED that the Mayor and/or the City Manager may direct the City
Clerk to select items which appear to be of particular public interest and to place these under the
heading Special Orderof Business, which shall be assigned a time of hearing and the Council shall
hear these items at the time so specified, and Policy Resolutions No. 32 and 33 (Establishing Order
of Agenda) are hereby repealed.
PASSED AND ADOPTED on this 19th day of January 2011, by the following roll call vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
ATTEST:
JoAnne M. Currie, City Clerk
Mari Rodin, Mayor
Policy Resolution No.
Page 1 of 1
ITEM NO.:
MEETING DATE.
city aJ`1Z-1kiafr,
AGENDA SUMMARY REPORT
11d
January 19, 2011
SUBJECT: ADOPT RESOLUTION REGARDING NEEDED IMPROVEMENTS TO COYOTE DAM
AND LAKE MENDOCIONO
Background:
The U.S. Army Corps of Engineers (USACE) built Coyote Dam in 1959 for the purposes of flood control,
water supply, irrigation, and recreation.
Discussion:
In the 51 years since project completion, many issues have developed including concerns with seismic
stability, flood forecasting uncertainty, spillway design, reservoir sedimentation, revised engineering and
environmental standards, inundation of recreational facilities, and new mandates affecting inflow and
outflow for the protection of endangered fisheries.
Additionally, the cumulative effect of the aforementioned issues have greatly diminished Coyote Dam's
ability to achieve its intended goals causing impacts to the economy, public safety, and the environment.
Recommendation:
Adopt Resolution requesting that the federal government appropriate sufficient funds to the USACE in the
FY 2012 budget to resolve all of the ongoing problems with Coyote Dam for the benefit of all affected
communities and public trust resources.
Continued on Page 2
Recommended Action(s): Adopt Resolution Requesting the Federal Government Appropriate
Sufficient Funds to the U. S. Army Corps of Engineers in the FY 2012 Budget to Resolve All Ongoing
Problems with Coyote Dam
Alternative Council Option(s):
Citizens advised:
Requested by:
Councilmember Benj Thomas
Prepared by:
Linda Brown, Administrative Assistant
Coordinated with:
Jane Chambers, City Manager
Attachments:
Resolution
Approved:
Chambers, City Manager
ATTACHME,NTj
RESOLUTION NO. 2011-
RESOLUTION OF THE UKIAH CITY COUNCIL REGARDING NEEDED
IMPROVEMENTS TO COYOTE DAM AND LAKE MENDOCINO
WHEREAS, the U.S. Army Corps of Engineers (USACE) built Coyote Dam in 1959 for the
purposes of flood control, water supply, irrigation and recreation; and,
WHEREAS, in the 51 years since project completion many issues have developed including:
concerns with seismic stability, flood forecasting uncertainty, spillway design, reservoir
sedimentation, revised engineering and environmental standards, inundation of recreational
facilities, and new mandates affecting inflow and outflow for the protection of endangered
fisheries; and,
WHEREAS, the cumulative effect of the aforementioned issues have greatly diminished Coyote
Dam's ability to achieve its intended goals causing impacts to the economy, public safety, and
the environment; and,
NOW, THEREFORE, BE IT RESOLVED that the Ukiah City Council requests that the Federal
Government appropriate sufficient funds to the USACE in the FY 2012 budget to resolve all on-
going problems with Coyote Dam for the benefit of all affected communities and public trust
resources
PASSED AND ADOPTED at a meeting of the Ukiah City Council on the 17th of January, 2011,
by the following roll call vote:
AYES:
NOES:
ABSTAIN:
ABSENT:
Mari Rodin, Mayor
ATTEST:
JoAnne Currie, City Clerk
If a company dumped the black goop behind a:factory, it would;violate.all sorts of environmental laws and face.an expen
sive hazardous-waste cleanup. But playgrounds, parking lots: and. driveways in many communities are coated.every sprung
and summer.with coal tar, a toxic byproduct. of steelmaking that contains high levels of chemicals linked to cancer and
other. health problems. Nearly two decades :after industry pressured the U .S. -Environmental Protection Agency to exempt
coal; tar-based pavement sealants from.anti}pollution laws., agrowing, number of government and academic.studies are
questioning the safety of the widely used products. Research shows that the tar steadily :wears off and crumbles :into con- ,
Laminated dust that is tracked. into houses and washed into lakes.
In Lake; in the Hills, a. fast:growing McHenry County suburb about SO miles nor thwest of. Chicago, researchers from the .
U.S. Geological Survey found that driveway dust was contaminated with extremely high levels of benzo(a)pyrene,.one of
the most toxic chemicals in coal tar. The amount was 5,300 times higher than the level that triggers an EPA Superfund
cleanup at polluted industrial sites.- High levels also were detected in. dust collected from parking lots and driveways; In
Austin; Texas; Detroit; Minneapolis; New Haven, Conn., and suburban Washington, D .C. By contrast, dramatically lower,,
levels were found in ortl d, Ore.Salt:Lake City and<Seattle, Western cities where pavementaealants tend to be made
with asphalt instead of coal tar. The findings raise new concerns about potential: health threatsto:people and aquatic life
that went undetected for years. '.'This, is.. areal eye-opener,. even for scientists who work. frequently with;these chemicals,"
said Barbara Mahler, a USGS researcher involved in.the studies. "Such high: concentrations usually arefound at.Super.
fund sites, but this could be your church parking lot or your school playground or even your.own driveway." About 85
million gallons of coal tar-based sealants are sold in the United States each year, according to industry estimates. There
are no comprehensive figures on where it is applied,-but in:2Lake,in.the Hills, researchers determined that $9 percentof the,
driveways are covered in coal tar. Manufacturers promote the sealants as a way to extend the life of asphalt and brighten .
it every few years with a fresh black .sheen. Contractors spread. a,mixture of coal tar, water and clay using squeegee ma-
chines andspmy wands, or homeowners 'can do it themselves with 5-gallon buckets bought at hardware stores.:
The makers of coal tar sealants acknowledge that the products contain high;levels of.benzo(a)pyrene and other-:toxic.
chemicals known collectively as polycyclic aromatic hydrocarbons, or PAHs.!But they deny their products are :responsible:
for the chemical contamination found in government: studies, saying it could be coming from vehicle exhaust or factory
emissions that travel long distances and eventually settle back to earth. As more research identifies coal tar sealants as a
top source of PAH-contaminated driveway dust and lake sediment, manufacturers have started to fund their own. research
to question the findings: Lobbyists also. are offering eontractors:free admission to an upcoming seminar that promises: to
show. them ways to "protect the industry," including a promotional DVD they can use<to."help market sealcoating to your
Customers.!,
"Nobody, in our industry wants to hurt anybody," said Anne: LeHuray, executive director of the Pavement Coatings Tech
nology Council, an industry trade group. ":The science is still evolving. If our products are a source, they area very local-
ized source. "The supply chain for the sealants begins at about two dozenfactories, most of them around the Great Lakes
or in western Pennsylvania, that bake coal into high-energy coke used in steel production. Companies figured out a:cen-
tury ago that much of the waste could be refined and sold to make other products, and they started adding it to pavement
sealants after. WorldWar . 11, -:One of the biggest suppliers is Koppers, a Pittsburgh-based company, that processes coal tar
at a plant in west suburban, The plant made about a:third:of the nation's refined coal tar in 2007, most of it used
in aluminum production, according to an. industry. slide. presentation. A company spokesman declinedtto comment.
Coal tar remains in widespread use even though its dangers have been known for centuries. During the late 1700s, many
chimney sweeps exposed to tar in coal-heated London developed scrotal cancer, and decades later doctors determined that
workers who coated railroad ties with tar-based creosote had high rates of skin cancer. More recently, federal and:state
officials have :prosecuted dozens of companies for illegally dumping coal tar and fouling neighboring areas with PAHs. At
least 40 percent of the polluted industrial sites on the EPA's Superfund cleanup list have problems with PAH contamina-
tion, as do scores of other sites that haven't made the list. Wjor cleanups in the Chicago area include a site invest subur
ban Oak Park, where a factory that turned coal into natural gas during the late 1800s dumped coal tar on property that later
became a village park Utilities spent at least $50 million #Wng 40 feet down into. Barrie Park. during the mid-2000s to
haul out more than 300,000 tons of contaminated soil.
In 2007, the U.S. EPA ordered a company to dig up the yards of more than three dozen homes in Chicago's Little Village
neighborhood where coal tar had oozed from an abandoned roofing plant nearby. The agency also urgedresidents to pre=
venttheir children from playing in dirt around their houses and to avoid gardening. The amount of PAHs thattriggered
the Oak Park and Littl&Village'cleanups was substantially lower thanwhat'researchers found in driveway dust in Lake in
million, respectively, compared with up'to 9;600 parts per million. , Despite-the EPA's
the `Hills 0.3 and-10 parts, 1
per
long-standing worries aboutthe chemicals, industry successfully lobbied to exempt'coal tepavement sealants when the-
agency tightened hazardous=waste rules for coke ovens during the early 1990s. The little-noticed" change made it easier for
manufacturers to keep selling the products, which can contain as much as 50 percent PAHs by weight.
Agency spokesmen declined to make anyone available to discuss the exemption, but said in a statement there are no plans
to revise` it. "EPA egulations allow for the legitimiate recycling of coal tar under certain specified ;parameters," the state-~
rnent said: -
Scientists started to track the movement of coal tar'sealants-into homes and lakes about a decade ago, afterpinpointing the
source of alarmingly high levels of'PAHs`in'Barton Springs; a:popular swimming hole inAustin ,.the Texas capital: Tom
Bashara,'an environmental investigator; noticed that Pollution hotspots ina.creek flowing into the pool were near;parking
lots- coated with cWf tar: The finding led Mahler and her colleagues at "a USGS center in Austin to expandthe, research to
other communities around =thenation, including Lake in the Hills, where the number of households more than quadrupled
between 1990 and 2006: Among other"things, they found rising amounts of PAHs in the sediment of lakes, where coal. tar
sealants are commonly"used; but dramatically lower ainounwin areas where asphalt-based sealants are preferred
In Austin; the'scientists also :found that dust inside apartments next toparking (lots coated withcoal tar was 25 times-more
contaminated than the dust iwunits next to lotscoated with-asphalt or. left unsealed: Young children.couldbe the most vul=.;
nerable to exposure, the researchers concluded, because they play. onor nearRoors where: dustcollects. After industry :
lawyers challenged the findings; arguing that other sources were to blame, the USGS scientists:published another. .peer
reviewed study late last year that traced the contamination back to coal tar sealants. By analyzing several feet of sediment,
they determined that concentrations in the biggest lake in' Lakein the Hills; known as Woods Creek Lake, didn't begin to
spike:untiFthe area. was more intensely paved with parking lots and driveways in the early 1990s. They spotted similar
trends in other, cities, including Orlando, Fla:; and suburban Washington:
"You just. don't otherwise see these kinds of concentrations in atypical urban, residential environment," said Peter Van.
Metre, another USGS scientistworking on the research. Coal-tar, sealants have been banned in Austin; Dane County, Wis: :
Washington;=D.C., and several Minnesota cities. Edirie,Depot and Lowe's have:pulled coal tar-based sealants from their,
shelves, though they remain widely available elsewhere. In Lake in the Hills., officials posted a one-page brochure at-Vil-
lage Hall outlining the difference between coal tar- and asphalt-based sealants. The village stopped using coal tar sealants
on its ownproperty but declined to ban them outright. "We've already solved the.problem," said GeraldSagona, the vil
lage administrator. PAHs are of particular concern because they don't break down easily. TheUSGS found that although
concentrations of banned chemicals.like DDT and PCBs are slowly.declining in the'enviroin ent levels of PAHs are in=
creasing:
"There 'isa'veryclear connection between the use'' these sealants and high levels of,contamination downstream," said
Alison Watts, a Universijy'of New'Hampshire researcher: whose own studies ,tracked'PAH-contaminated runoff,from park-
ing lots. "The problem isn't.going to<;go away ifyou keep_putting this stuff down every three:years."
m
mhawthorne@4ribune.co