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HomeMy WebLinkAbout2011-03-02 PacketCITY OF UKIAH CITY COUNCIL AGENDA Regular Meeting CIVIC CENTER COUNCIL CHAMBERS 300 Seminary Avenue Ukiah, CA 95482 March 2, 2011 6:00 p.m. 1. ROLL CALL 2. PLEDGE OF ALLEGIANCE 3. PROCLAMATIONS/INTRODUCTIONS/PRESENTATIONS a. Proclamation: March: Women's History Month b. City Accomplishments By Department 4. PETITIONS AND COMMUNICATIONS 5. APPROVAL OF MINUTES a. Special Meeting of 2/23/11 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 To Council Of The Expenditure Of $7,516.54 To HD Supply Of Benicia For The Purchase Of Overhead And Underground 12 kV Distribution Fault Indicators And Fiber Optic Leads For Electric Utility Department (EUD). b. Report To Council Of The Expenditure Of $8,541.75 To General Pacific, Inc. For The Purchase Of Four Fiberglass Box Pad Foundations For Pad Mounted Switchgear For The Electric Utility Department (EUD). C. Award Purchase Of Flatbed And Utility Rack To Cooks Truck Body Manufacturing, Inc. Of Roseville, Ca. For The Electric Utility Department In The Amount Of $10,013.13 And Authorize The Utility Director To Approve Change Orders Not To Exceed 10% Of The Bid Amount. (EUD) d. Award The Purchase Of Two Submersible Vacuum Breakers To Trayer Engineering Corporation In The Amount Of $28,714.00 Including Tax And Estimated Freight (EUD). e. Approve The Documents Associated With Turlock Irrigation District (TID) Withdrawal From The Northern California Power Agency (NCPA) And Authorize The City Manager To Execute All Of The Necessary Agreements And Amendments To Proceed With The Withdrawal (EUD). f. Report On Status Of Guard Rail For The Babcock Lane Approach To The New Bridge Structure Constructed For The Realignment Of Gobbi Street - Oak Manor Drive - Babcock Lane Intersection 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. COUNCIL REPORTS 10. CITY MANAGER/CITY CLERK REPORTS 11. PUBLIC HEARINGS (6:15 PM) 12. UNFINISHED BUSINESS a. Status Report on Building Permit Review Process b. Status Report on Code Compliance Activities 13. NEW BUSINESS a. Discussion And Consideration Of A Resolution In Opposition To The Governor's Proposal To Abolish Redevelopment Agencies In California b. Award Of Contract For Ukiah Municipal Pools Renovation Project Specification Number 10- 19 And Any Necessary Budget Amendments C. Consideration Of Resolutions Of The Ukiah City Council In Support Of The 12th District Agricultural Association And The Mendocino County Fair And Apple Show. d. Discussion And Possible Adoption Of Resolution Approving Contractual Agreement(s) Between The City Of Ukiah And The Ukiah Redevelopment Agency, Obligating The Agency To Fund Specified Projects/Programs To Be Undertaken By The City; Adopting Any Legally Required Findings; Authorizing The City Manager To Execute The Agreement(s) And Any Other Related Documents; And Approving Corresponding Budget Amendment(s). e. Discussion And Possible Adoption Resolution Approving Agreement(S) Between The City Of Ukiah And The Ukiah Redevelopment Agency, To Transfer Agency Owned Real Property To The City For Specified Purposes And Authorizing The City Manager To Execute The Agreement And Any Related Documents, Including, But Not Limited To, Deeds And Other Title Documents. (Property Subject To Conveyance May Include, But Is Not Limited To, The Following APNs: 002-153-04, 002-153-30, 002-192-01, 002-265-09, 002-281-15, 002-281-18, 002-281-24, 002-281-28, 002-281-29, 180-080-57, 180-080-58, 180-080-59, 180-080-62, 180-080-63, 180-080-64, 180-080-65, 180-080-66, 180-080-67, 180-110-08, 180-110-09, 180-110-10, 180-110-11, 180-110-12, 180-110-13, 180-110-14, 180-110-15) Discussion And Possible Adoption Loan Agreement(s) Between The City Of Ukiah And The Ukiah Redevelopment Agency And/Or Resolution(s), Whereby The Agency Borrows Funds From The City In Support Of Specified Projects/Programs And The Use Of Redevelopment Tax Increment Funds To Repay The Debt; As Necessary, Adoption Of Any Legally Required Findings; Authorization For The City Manager To Execute All Necessary Documents; And Approval Of Corresponding Budget Amendment(s). 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 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 25th day of February, 2011. Linda Brown, Acting City Clerk 3a PROCLAMATION MARCH: WOMEN'S HISTORYMONTH 28TH ANNIVERSARY OF THE WOMEN'S HISTORY GALA CELEBRATION WHEREAS, in March 1983 the first Women s History Gala Celebration in Mendocino County was held in the Anderson Valley High School. Thereafter, each year it has been held in the City of Ukiah, the seat of Mendocino County, with the March 6, 2011 celebration marking its 28th anniversary; and WHEREAS, the United States of America ranks somewhere around #71 worldwide in the number of women in political office, below Pakistan and Cuba; WHEREAS in the United States Congress, women are just 17% of the elected representatives, compared to 51% of the US population; and WHEREAS, the National Women's Political Caucus (NWPC-Mendocino) launched the Women's History Celebration and is now joined with sponsorship with the American Association of University Women (AAUW-Ukiah branch); Soroptimist International of Yokayo Sunrise, and the Ukiah Saturday Afternoon Club; and WHEREAS, the aforementioned women's organizations continue to work to increase and acknowledge the roles of women at all levels of community and public service, and to become knowledgeable about issues that affect their equality and to foster networks that extend and expand the creative, social, and political strength of women; and WHEREAS, the tradition of the annual Women Making History Gala is to recognize and honor particular women who exemplify each year's designated theme for contributions in their communities through their fields of work; and WHEREAS, on Sunday, March 6, 2011 the public is invited to attend the 28th Anniversary of the Women Making History Gala Celebration at noon at the Saturday Afternoon Clubhouse. Local women to be honored who embody this year's theme: Women's History is Our Strength are: Ann Kilkenny, Beba Frey, Laura Wedderburn, Lynn Meadows, and Molly Johnson Martinez and the Los Hilos de la Vida Quilters. THEREFORE, I, Mary Anne Landis, on behalf of Mayor Mari Rodin and my fellow Ukiah City Council members Phil Baldwin, Douglas Crane, and Benj Thomas do hereby join other communities in the nation in proclaiming the month of March to be Women's History Month and to recognize and celebrate the 28th Anniversary of the Women Making History Gala Celebration on Sunday, March 6, 2008. Signed and sealed, this 2nd day of March, in the year Two Thousand and Eleven .1{llari Rodin Mayor CITY OF UKIAH CITY COUNCIL MINUTES Special Meeting Ukiah Valley Conference Center 200 S. School Street, Chenin Blanc Room Ukiah, CA 95482 February 23, 2011 6:00 p.m. Item 5a 1. ROLL CALL Ukiah City Council met at a Special Meeting on legally noticed on February 18, 2011. Mayor Rod was taken with the following Councilmembers pres Rodin. Councilmembers absent: None. Staff Manager Sangiacomo, City Attorney Rap 4 _ , Finance Director Roth, Consultant/Project ge The meeting was held concurrently with the U 2. AUDIENCE COMM 3. RIGHT TO APPEA 4. APPROVAL OF M:I I 5. CONSENT CALEN 6. PUBLI s,6 7. UN HED BUST 8. NEW B a. Disc~ion and Ukiah R X111cts eloprr capby Agency. .A Febi 23, 2011, the notice for which being i the meeting to order at 6:03 pm. Roll an 1'. Thomas, Crane, Baldwin and Mayor sent: City ,a>ager Chambers, Assistant City Project & Gr , dministrator Mills, Assistant r Carmichael, andeting City Clerk Brown. ITEMS nt Ag le adoption of resolution approving issuance by the kgency of two separate series,of bonds to finance Agency and low income housing activities by the City Manager Chambers and Assistant City Manager Sangiacomo presented the item. Recommended Actions: 1. Authorize the City Manager to take all necessary steps for a redevelopment bond issuance; and, 2. Approve resolution attached as Attachment 2. M/S Baldwin/Landis to approve the Recommended Action with Scenario 1 and the proviso that the Pay-As-You-Go would be $175,000 per year. Public Comments were made by: Ernie Fine, J. R. Rose, Lisa Mammina, and Rick Hansen (Ukiah Main Street). Motion carried by the following roll call votes: AYES: Councilmembers Landis, Thomas, Baldwin, and Mayor Rodin. NOES: Councilmember Crane. ABSENT: None. ABSTAIN: None. 9. COUNCIL REPORTS 10. CITY MANAGER REPORTS City Manager Chambers reported on an article in today's Ukiah Daily Journal on the topic of Ukiah Valley Sanitation District's proposed sewer rate hikes that is anticipated to greatly impact businesses. 11. CLOSED SESSION - Closed Session may be held at any time during the meeting 12. ADJOURNMENT There being no further business, the meeting adjourned Linda C. Brown, Acting City Clerk ITEM NO.: 7a MEETING DATE: AGENDA SUMMARY REPORT March 2, 2011 SUBJECT: REPORT TO COUNCIL OF THE EXPENDITURE OF $7,516.54 TO HD SUPPLY OF BENICIA FOR THE PURCHASE OF OVERHEAD AND UNDERGROUND 12 KV DISTRIBUTION FAULT INDICATORS AND FIBER OPTIC LEADS FOR ELECTRIC UTILITY DEPARTMENT (EUD). Pursuant to the requirements of Section 1522 of the Municipal Code, this report is being submitted to the City Council to advise of the purchase of 12 overhead and 36 underground Fault Indicators and 12 fiber optic leads with mounting kits. A bid request was sent to eleven (11) vendors. Six responded with three of those being No Quotes. Results of that request are as follows: HD Supply - Benicia One Source Wesco Distribution $ 7,516.54 $ 7,595.36 $ 7,839.01 HD Supply Benicia was awarded the bid with a total price of $7,516.54 with tax and freight included. Fiscal Impact: Budgeted FY 10/11 F-1 New Appropriation Not Applicable ❑ Amount Budgeted Source of Funds (title and Account Number $50,000 800.3728.930.000 Budget Amendment Required Recommended Action(s): NO ACTION NEEDED - REPORT TO COUNCIL ONLY Alternative Council Option(s): None Needed Citizens advised: N/A Requested by: Mel Grandi, Electric Utility Director Prepared by: Jim Bauer, Electrical Distribution Engineer, Mary Williamson, Purchasing Assistant Coordinated with: Mary Horger, Purchasing Supervisor, Attachments: N/A Approved: - 6 k" ~ Ja Chambers, City Manager ITEM NO.: 7b MEETING DATE: March 2, 2011 AGENDA SUMMARY REPORT SUBJECT: REPORT TO COUNCIL OF THE EXPENDITURE OF $8,541.75 TO GENERAL PACIFIC, INC. FOR THE PURCHASE OF FOUR FIBERGLASS BOX PAD FOUNDATIONS FOR PAD MOUNTED SWITCHGEAR FOR THE ELECTRIC UTILITY DEPARTMENT (EUD). Pursuant to the requirements of Section 1522 of the Municipal Code, this report is being submitted to the City Council to advise of the purchase of 4 fiberglass box pads. A bid request was sent to sixteen (16) vendors. Six responded with two "No Quote" and one was rejected as not acceptable. Results of that request are as follows: General Pacific, Inc. HD Supply Benicia ProGlass Inc. $ 8,541.75 $ 9,534.59 $14,572.50 General Pacific, Inc. was awarded the bid with a total price of $8,541.75 with tax and freight included. Fiscal Impact: Not Applicable Budget Amendment Required X I Budgeted FY 10/11 F-1 New Appropriation F-1 I Amount Budgeted Source of Funds (title and Account Number $120,000 800.3729.930.000 Recommended Action(s): NO ACTION NEEDED - REPORT TO COUNCIL ONLY Alternative Council Option(s): None Needed Citizens advised: N/A Requested by: Mel Grandi, Electric Utility Director Prepared by: Jim Bauer, Electrical Distribution Engineer, Mary Williamson, Purchasing Assistant Coordinated with: Mary Horger, Purchasing Supervisor, Attachments: N/A Approved: J e Chambers, City Manager ITEM NO.: 7c MEETING DATE: March 2, 2011 AGENDA SUMMARY REPORT SUBJECT: AWARD PURCHASE OF FLATBED AND UTILITY RACK TO COOKS TRUCK BODY MANUFACTURING, INC. OF ROSEVILLE, CA. FOR THE ELECTRIC UTILITY DEPARTMENT IN THE AMOUNT OF $10,013.13 AND AUTHORIZE THE UTILITY DIRECTOR TO APPROVE CHANGE ORDERS NOT TO EXCEED 10% OF THE BID AMOUNT. (EUD) Submitted for the City Council's consideration and action is Staff's recommendation that Council award purchase of a flatbed truck bed and rack per City of Ukiah specification NO. E31134, to Cooks Truck Body Mfg. Inc. in the amount of $10,013.13. The truck bed unit will be installed on a previously approved 2011 Chevrolet Silverado 350OHD Chassis purchased without the cargo bed. The flatbed and rack will meet the Electric Utility Department's needs to carry transformers, small poles and other heavy equipment. This bed purchase consists of vertical storage bins, cargo area with sides and specially designed rack. Bid Requests were sent to Six (6) companies that specialize in manufacturing truck bodies. Four quotes were received. The results of those bids are shown below for Council's review. The funding for this vehicle in the amount of $45,000.00 was approved for the 09/10 budget in the account 800.3642.800.000; the cost of the vehicle was $38,737.17. Cooks Truck Body Mfg., Inc. Western Truck Fab North Bay Truck Body Carter Industries $10,013.13 $10,820.63 $13,624.20 $14,050.03 Fiscal Impact: Budgeted FY 10/11 New Appropriation Not Applicable Budget Amendment Required Amount Budgeted Source of Funds (title and Account Number Addit. Appropriation Requested $1,480,000 800.3728.930.000 Overhead Maintenance Recommended Action(s): AWARD PURCHASE OF FLATBED AND UTILITY RACK TO COOKS TRUCK BODY MANUFACTURING, INC. OF ROSEVILLE, CA. FOR THE ELECTRIC UTILITY DEPARTMENT IN THE AMOUNT OF $10,013.13 AND AUTHORIZE THE UTILITY DIRECTOR TO APPROVE CHANGE ORDERS NOT TO EXCEED 10% OF THE BID AMOUNT. (EUD) Alternative Council Option(s): Reject all bids and provide direction to Staff. Citizens advised: N/A Requested by: Colin Murphey, Electric Supervisor, Tim Santo, Electrical Sub-Supervisor Prepared by: Mary Williamson, Buyer Coordinated with: Mel Grandi, Electric Utility Director, Mary Horger, Purchasing Supervisor Attachments: Approved: J Chambers, City Manager City of 'Z k6rh ITEM NO.: 7d MEETING DATE: AGENDA SUMMARY REPORT March 2, 2011 SUBJECT: AWARD THE PURCHASE OF TWO SUBMERSIBLE VACUUM BREAKERS TO TRAYER ENGINEERING CORPORATION IN THE AMOUNT OF $28,714.00 INCLUDING TAX AND ESTIMATED FREIGHT (EUD). Staff is requesting authorization to purchase two submersible, liquid insulated vacuum breakers, 15-25 W, 3-phase with stainless tank construction for the City of Ukiah Electric Utility. Trayer was specified although the option to bid an equivalent design was given to prospective bidders. Bids were sent to eleven (11) companies including the manufacturer. Responses were received from seven with four being "No Quotes". The results of the bids are shown below. Trayer Engineering Corporation One Source Distributors HD Supply Benicia Fiscal Impact: Budgeted FY 09/10 ❑ New Appropriation Amount Budgeted Account Number $120,000 800.3729.930.000 $28,714.00 $30,802.20 $31,450.78 Not Applicable Additional Funds N/A ❑ Budget Amendment Required Reauested Recommended Action(s): AWARD THE PURCHASE OF TWO SUBMERSIBLE VACUUM BREAKERS TO TRAYER ENGINEERING CORPORATION IN THE AMOUNT OF $28,714.00 INCLUDING TAX AND ESTIMATED FREIGHT (EUD). Alternative Council Option(s): (1) Reject Bids; (2) Provide Staff with other direction. Citizens advised: n/a Requested by: Mel Grandi, Electric Utility Director Prepared by: Mary Williamson, Buyer, Colin Murphey, Electric Supervisor Coordinated with: Mary Horger, Purchasing Supervisor Attachments: Approved: ,fan Chambers, City Manager ITEM NO.: MEETING DATE: C'i6y oJ' Vk aF AGENDA SUMMARY REPORT 7e March 2, 2011 SUBJECT: APPROVE THE DOCUMENTS ASSOCIATED WITH TURLOCK IRRIGATION DISTRICT (TID) WITHDRAWAL FROM THE NORTHERN CALIFORNIA POWER AGENCY (NCPA) AND AUTHORIZE THE CITY MANAGER TO EXECUTE ALL OF THE NECESSARY AGREEMENTS AND AMENDMENTS TO PROCEED WITH THE WITHDRAWAL (EUD). Background TID provided a letter to NCPA, dated March 16, 2009, announcing its intention to provide notice to all members of its intent to terminate its membership in NCPA in accordance with the terms of the Joint Powers Agreement (JPA). This letter was followed by a letter dated March 24, 2009 to each NCPA member, indicating that TID had provided notice to NCPA that it was terminating its membership effective no later than April 1, 2011. Notwithstanding the clear termination date provided to each of the members in their March 24, 2009 letter, the March 16 letter to NCPA did not comport with the two-year notice requirement, as it indicated an intent to send a notice to withdraw as opposed to a formal notice to withdraw by a date certain. As a result of the ambiguity between the two sets of letters, utility directors requested the NCPA General Manager to follow up with TID to secure a more formal notice of TID's intention to withdraw from NCPA. In response to that request, TID provided a resolution of its board, dated June 2, 2009, indicating that the board had met in closed session on March 24, 2009 and had authorized, among other things, the TID general manager to send notices of termination to member agencies as required under the JPA. Based on the receipt of the TID board resolution, in combination with the March 16th letter to NCPA and the March 24th letters to NCPA members, the NCPA Commission agreed to establish April 1, 2011 as the effective termination date for TID's membership in the JPA, and directed staff to begin working out the details necessary to provide for an orderly withdrawal no earlier than April 1, 2011. In order to accommodate TID's withdrawal, staff performed an inventory of all agreements that appeared to be relevant to TID's withdrawal and has been working together with TID staff and legal counsel over the last eighteen months to terminate, update and/or develop as necessary, agreements, policies and procedures that are required to effectuate TID's withdrawal from the Agency. After lengthy negotiations, the agreements, policies and procedures deemed necessary fell into three categories as follows: Recommended Action(s): APPROVE THE DOCUMENTS ASSOCIATED WITH TURLOCK IRRIGATION DISTRICT (TID) WITHDRAWAL FROM THE NORTHERN CALIFORNIA POWER AGENCY (NCPA) AND AUTHORIZE THE CITY MANAGER TO EXECUTE ALL OF THE NECESSARY AGREEMENTS AND AMENDMENTS TO PROCEED WITH THE WITHDRAWAL (EUD). Alternative Council Option(s): Citizens advised: Requested by: Mel Grandi, Electric Utility Director Prepared by: Mel Grandi, Electric Utility Director Coordinated with: Jane Chambers, City Manager and NCPA Staff Attachments: Resolution Approved: a O Chambers, City Manager • Natural Gas Related Programs and Projects • Geothermal Related Programs and Projects • Obligations under existing governance agreements to be settled prior to exit Natural Gas Related Programs and Projects All work associated with natural gas related programs and projects has been completed. Activity included terminating the Natural Gas Purchase Program third phase agreement, removing TID from the natural gas procurement and pipeline capacity management agreement and modifying natural gas pipeline tariff agreements to reflect a split of pipeline capacity between NCPA and TID. (See NCPA Commission Staff Reports: 223:10 and 222:10 for complete details on these changes) Geothermal Related Programs and Projects After some vacillation by TID with respect to whether or not to retain its ownership interest, TID decided that it will retain its interests in Geothermal Project No.3 even after its withdrawal from NCPA membership. TID is not currently, however, a signatory to the Geothermal Project Third Phase Agreement. TID's rights and entitlements in the geothermal project flow instead from letter agreements between TID and various geothermal project participants by which project entitlement percentages are transferred (currently affecting Palo Alto, Gridley, and Plumas who are sometimes referred to as the "permanently transferring participants"), letter agreements between TID and NCPA by which NCPA agreed to treat TID as a project participant, at least as to the first of the transfer agreements, and more typical agency governance documents such as the Facilities Agreement and the Geothermal Project Operating Agreement. Significantly, since TID is not a signatory to the geothermal project third phase agreement it currently derives its ability to vote its interests in its share of the geothermal project only through the previously referenced letter agreements. This has been treated as permitting TID's commissioner to vote at commission meetings and through its appointed representative on the Facilities Committee. Once TID's termination of membership is effective, however, TID will no longer have a commissioner on the NCPA Commission that will be able to vote TID's interests with regard to its entitlements in the geothermal project. Likewise, while TID is a signatory to the Facilities Agreement, that agreement provides that representation on the Facilities Committee is based upon being an NCPA member. As a result, NCPA and TID staffs have been negotiating agreements that will ensure that TID's rights and obligations as embodied in those letter agreements are continued in successor agreements to be implemented upon TID's withdrawal and that continuing NCPA member interests are protected in an equal fashion. Specific changes surrounding the geothermal related programs and projects are discussed in more detail below in the "Issue" section of this staff report. Obligations under existing governance agreements to be settled prior to exit The JPA provides that any signatory to the JPA terminating its membership in the JPA is obligated to pay its pro-rata share of all encumbrances and indebtedness of NCPA as of the date of termination as a condition precedent to such termination and withdrawal. NCPA and TID have been negotiating regarding a set of claims that each has specified against the other in an effort to reach agreement on a lump sum amount that would be used to settle all known and unknown claims made by one entity against the other. The vehicle for settling all known and unknown claims has been titled the "exit agreement" and in addition to settling all claims, would be used to terminate certain remaining agreements between the parties that require termination due to the termination of membership and to establish dispute resolution scope limits and processes for disputed payments made by TID to NCPA during fiscal year 2010/2011 as a consequence of TID having declined to approve the NCPA annual budget. Further detail associated with the "exit agreement" is provided in the "Issue" section of this staff report below. Actions: Each of the agreements requiring approval is summarized below: Geothermal Project Agreements Attached to this ASR are a set of geothermal project related agreements requiring Council approval as follows: Amendment Number Two To Agreement For Construction Operation And Financing of Geothermal Generating Project Number 3 The primary purpose of this agreement is to provide for TID to become a signatory to the Geothermal Project Number Three Third ' Phase Agreement and thereby be recognized as an official "Project Participant" under that Agreement. This amendment also clarifies that a Project Participant's entitlements under the project include attributes that may exist now or in the future, such as environmental attributes, in addition to project capacity and energy. The amendment clarifies and strengthens the obligation that Project Participants have to protect the tax exempt status of the bonds issued to finance the project. It also establishes an "in-lieu" JPA cost assessment for non-members equivalent to the "in-lieu" cost assessment for non-members established for the Lodi Energy Center Project. Upon withdrawal, TID would be subject to this "in-lieu" JPA cost assessment. This amendment would provide that the permanently transferring participants remain secondarily liable for any payments not made by TID. This provision is necessary so that the security of bond holders is not adversely affected and therefore the approval of the bond trustee is not required. This secondary liability is terminated, under the terms of the Fourteenth Supplemental Indenture of Trust discussed below, once currently outstanding bonds are paid off. Approvals Required: NCPA Commission, TID Governing Board and Geothermal Project Participant Governing Boards • Amended and Restated Geothermal Project Operating Agreement The Geothermal Project Operating Agreement (Operating Agreement) is a schedule to the Facilities Agreement. It generally provides for the means by which Project No. 2 and Project No. 3 are operated as a single shared resource. It is proposed that the current operating agreement would be completely replaced by the Amended and Restated Operating Agreement. The Amended Operating Agreement will take precedence over the Facilities Agreement in the event of conflicts between the two agreements. The Amended Operating Agreement contains all of detail required to administer and operate the geothermal project on behalf of the project participants and provides for the combined operation of geothermal projects number two and three in the most cost efficient manner due to the finite and limited nature of the steam field supply. Definitions in the Amended Operating Agreement were updated to include new terms that are relevant to operations today, 20 years after the first Operating Agreement was adopted. The Amended Operating Agreement clarifies how Administrative Costs will be identified and allocated to the project as an addition to the prior Operating Agreement that was limited to methodologies for allocating Project Costs. A section on Surplus Capacity and Energy Sales was added that eliminates all Rights of First Refusal with regard to capacity, energy or other attributes associated with the project, irrespective of possible contradictory language in the third phase agreement. This provision was the subject of extensive debate by the Facilities Committee and the Utility Directors. Annual budget processes were amended to be consistent with third phase agreement language. Project Participant Direction and Review sections were amended to clarify how project participants, and particularly TID as a project participant and non-member will be able to participate at Commission meetings, Facilities Committee meetings, and other meetings of NCPA committees which are subject to the Brown Act. In particular, TID will not have a vote or participation rights (other than as a member of the public) at Commission meetings. It will, however, have the right to direct the vote of the permanently transferring participants, and the right to demand a "project vote" occur at the Commission. It will remain a member of the Facilities Committee where TID will have the right to participate in and vote on matters that relate to the Geothermal Project. It will have the right to receive notices, agendas and materials of other Brown Act committees of NCPA which have Geothermal Project matters listed on their agendas. Scheduling sections were updated to eliminate the ability to store steam for later electricity production and delivery, while retaining the ability to reduce output of the plant and the participants' share of that output up to annually determined plant reduction limits. Lastly, the Amended Operating Agreement is used to terminate agreements, including the First and Second Transfer Agreements between TID and transferring project participants, the Letter Agreement between TID and NCPA specifying TID's rights under the first Transfer Agreement, the Layoff Equalization Agreement in support of the combined refinancing of the Geothermal Project and Hydroelectric Project, with rights and obligations of terminated agreements transferred to the Amended Operating Agreement, or eliminated, as appropriate. Approvals Required: NCPA Commission, TID Governing Board and Geothermal Project Participant Governing Boards Amendment Number One to Northern California Power Agency Facilities Agreement The current Facilities Agreement provides that a Participant to the Facilities Agreement is a member of NCPA. Or stated another way, the Facilities Agreement did not contemplate that participants in NCPA projects would not be a member of NCPA. Amendment Number One provides that, notwithstanding language in the Facilities Agreement to the contrary, TID will be able to designate one member to the Facilities Committee so long as TID remains a project participant in Geothermal Project Number 3 and that TID shall have voting rights on the Facilities Committee only with respect to Geothermal Project Number Three. This amendment will implement the agreements and understandings contained in the Amended Operating Agreement that provide for TID's continued ability to vote and participate in meetings requiring notice and which, will involve discussions affecting its interests in the project. Approvals Required: NCPA Commission, TID Governing Board and Facilities Agreement Participant Governing Boards Fiscal Impact An attachment summarizing the settlement amounts for each of the known claims identified in Section 3 of the Exit Agreement, along with an allocation of the revenue or the cost to each member affected or benefitting from a particular settlement category is in development. Discussion Negotiations surrounding the referenced agreements have been both quite lengthy and very fluid, necessitating regular modifications and updates to the agreements. As a result, it proved to be very difficult to coordinate regular ongoing review and comment from potential additional reviewers (members) outside of the negotiating group established by the NCPA Commission. Consequently, the approach taken by the negotiating group was to review all contracts at certain milestone points with our Facilities Committee, Utility Directors, Legal Committee and Commission, and to obtain regular policy direction from the Commission regarding key terms and conditions in the agreements during closed sessions. At this point, the referenced agreements have been reviewed with the Facilities Committee, Utility Directors, Legal Committee and Commission at various points of completion over the last three months. The Legal Committee agreed in principle with the agreements as drafted at the time of their review and recommended that Commission approval of the exit agreement be conditioned on receipt of TID executed copies of all agreements within seven (days) of the conditional approval of the agreements by the NCPA Commission. Both the Facilities Committee and Legal Committee suggested eliminating language within the Amended Operating Agreement indicating that costs would be allocated according to "cost causation principles" unless the term cost causation could be defined. TID and NCPA negotiating teams were unable to come to agreement on a definition for cost causation, and TO was adamant that this language should stay in the agreement. After much discussion, the NCPA negotiating team recommends that the cost causation language be left in the agreement without the definition. It is our view that there is sufficient case law on the subject to refer to in the event there is ever a dispute over whether NCPA is properly allocating costs to the Project in accordance with cost causation principles. The Facilities Committee will review the final set of agreements on February 17t", which will occur after staff reports are due. Staff will provide an oral update at the Commission meeting, summarizing the Facilities Committee recommendation. Fiscal Impact: No significant impact in budget. Budgeted FY 10/11 F] New Appropriation Not Applicable F Budget Amendment Required Amount Budgeted Source of Funds (title and Account Number Addit. Appropriation Requested ATTACHMENT I RESOLUTION NO.2011- RESOLUTION OF THE CITY OF UKIAH APPROVING AGREEMENTS REQUIRED FOR TURLOCK IRRIGATION DISTRICT (TID) WITHDRAWAL FROM THE AMENDED AND RESTATED NORTHERN CALIFORNIA POWER AGENCY JOINT POWERS AGREEMENT WHEREAS, Turlock Irrigation District (TID) is a signatory to the Amended and Restated Northern California Power Agency Joint Powers Agreement (JPA) dated as of January 1, 2008; and WHEREAS, TID has provided the required 2 year notice of termination of membership in the JPA and the Commission has accepted that 2 year notice to be effective April 1, 2011 ; and WHEREAS, TID's termination of membership in the JPA affected its rights and obligations under various agreements between TID and NCPA members and between TID and NCPA, requiring those agreements to be either terminated, clarified or amended in some fashion; and WHEREAS, Any signatory to the JPA terminating its membership in the JPA is obligated to pay its pro-rata share of all debts, liabilities and obligations of NCPA as of the date of termination as a condition precedent to such termination and withdrawal; and WHEREAS, TID and NCPA staffs have worked together to identify all agreements needing to be either terminated, clarified or amended, and have arrived at a recommended settlement amount that would satisfy TID's obligation to pay its pro-rata share of all debts, liabilities and obligations of NCPA as of the date of termination; and WHEREAS, the agreements required to effectuate TID's withdrawal from the JPA are attached to the Agenda Summary Report 7e, dated March 2, 2011. WHEREAS, approval of these agreements is not a project for purposes of the California Environmental Quality Act; and NOW, THEREFORE BE IT RESOLVED that the Ukiah City Council: 1. Finds that approval of the agreements referenced in the attached staff report is an administrative activity which will not result in either a direct physical change in the environment or a reasonably foreseeable indirect change in the environment, and is therefore not a "project" for purposes of the California Environmental Quality Act pursuant to CEQA Guidelines section 153789(a) and (b). 2. Adopt a resolution which: a. Approves and authorizes the City Manager to execute the following agreements on behalf of the City of Ukiah, with such minor modifications approved by General Counsel, and conditioned on receipt of executed copies of the agreements, properly executed by TID, which shall include a resolution of the TID board authorizing execution of each of the agreements requiring execution by TID as referenced in the staff report: • Amendment Number Two to Agreement for Construction, Operation and Financing of Geothermal Generating Project Number 3 • Amended and Restated Geothermal Project Operating Agreement Between Northern California Power Agency and the Geothermal Project Participants • Amendment Number One to Northern California Power Agency Facilities Agreement vote: PASSED AND ADOPTED by the City of Ukiah Council on March 2, 2011, by the following roll call AYES: NOES: ABSTAIN: ABSENT: Mari Rodin, Mayor JoAnne Currie, City Clerk NCPA Resolution 11-10 -2- MAN* FP ITEM NO.: 7f MEETING DATE: March 2, 2011 city of Wkinh AGENDA SUMMARY REPORT SUBJECT: REPORT ON STATUS OF GUARD RAIL FOR THE BABCOCK LANE APPROACH TO THE NEW BRIDGE STRUCTURE CONSTRUCTED FOR THE REALIGNMENT OF GOBBI STREET - OAK MANOR DRIVE - BABCOCK LANE INTERSECTION Background & Discussion: City staff has worked with its consultant, Green Valley Consulting Engineers, regarding the plan to construct a guard rail on the Babcock Lane approach to the new bridge structure constructed for the realignment of Gobbi Street - Oak Manor Drive - Babcock Lane intersection. The Babcock Lane bridge end wall is located at the edge of pavement which is also the top of bank for Gibson Creek. Due to this configuration, construction of the guard rail will trigger either an amendment to the City's existing Fish and Game permit or a new Fish and Game permit. As such, work will need to be completed during the summer months when construction is permitted adjacent to the creek. In addition, design work will be required for the guard rail due to the limited space at the edge of bank / top of bank. Furthermore, City staff will continue monitoring a section of the east bank of Gibson Creek to determine if extension of rip- rap is required. If additional rip-rap is needed, this work will be coordinated with the Fish and Game permit and the guard rail work. Fiscal Impact: Budgeted FY 10/11 F-1 New Appropriation Not Applicable Budget Amendment Required HFRI Amount Budgeted Source of Funds (title and Account Number Addtl. Appropriation Requested Recommended Action(s): Receive and file report on status of guard rail for the Babcock Lane approach to the new bridge structure constructed for the realignment of Gobbi Street - Oak Manor Drive = Babcock Lane intersection Alternative Council Option(s): N/A Citizens advised: N/A Requested by: Tim Eriksen, Director of Public Works / City Engineer Prepared by: Rick Seanor, Deputy Director of Public Works - Engineering and Streets Coordinated with: Jane Chambers, City Manager Attachments: None. Approved: tn_ Chambers, City Manager City of TJkiar ITEM NO.: 12a MEETING DATE. March 2, 2011 AGENDA SUMMARY REPORT SUBJECT: STATUS REPORT ON BUILDING PERMIT REVIEW PROCESS SUMMARY: Last summer, a number of local representatives visited the City of Sunnyvale Building Department to learn about how Sunnyvale has developed a customer friendly and efficient building permit plan-check and review process. While Sunnyvale is a large City with capabilities the City of Ukiah does not currently have, there were a number of ideas and discussion items brought back by the local representatives. City Council members Landis and Thomas met with City Staff to discuss these ideas. One-Stop Permit Center Sunnyvale has a one-stop permit center that is staffed by a building permit plan-checker, structural engineer, planner, fire protection engineer, and others. The purpose is to have all of these staff members routinely available in one place to provide information to the public, review permits, and in some cases issue permits over the counter. The one-stop permit center provides coordinated customer contacts with appropriate staff representation, development services in a central location, a streamlined permit process, and plan-checks and permit issuance combined in one location. While the City of Ukiah has a permit services counter, it does not have Staff solely dedicated to it. For example, the City Building Official handles front counter customer service, but also performs plan checks, all building inspections, building code enforcement, oversees the structural engineer consultants, code update work and other duties. He is not available 8-hours per day to perform plan checks at the permit services counter. All the Staff dedicated to providing permit review and information have other responsibilities as well. There have been some recent changes to create more of a one-stop permit center to improve the service related to the review and issuance of permits. These include the following: 1. Relocation of the Water/Sewer Program Coordinator to the front counter area. 2. Relocation of the Community Service Representative (Business Licenses) to the front counter area. 3. Certification of the Development Permit Coordinator as a Permit Technician. 4. Fire code plan check and inspection training for the Building Official. (Continued on page 2) Recommended Action(s): Receive report Alternative Council Option(s): N/A Citizens advised: N/A Requested by: Charley Stump, Director of Planning and Community Development Prepared by: Charley Stump, Director of Planning and Community Development Coordinated with: Jane Chambers, City Manager and David Willoughby, Building Official Attachments: None Approved: TP Chambers, City Manager 5. Cross-training of all front counter staff, particularly with basic building permit tasks. Over the Counter Permit Review and Issuance The City of Sunnyvale and the City of Ukiah issue a number of building permits over the counter. These include re-roofs, window replacements, water heater replacements, furnace replacements, minor kitchen or bathroom remodels, minor electrical work, minor residential repairs, and others. However, Sunnyvale, with its one-stop structural engineer, can issue additional permits over the counter, such as single story additions. Staff is currently analyzing the feasibility of having our plan check consultants provide a structural engineer on a designated day(s) to provide pre-arranged on-site structural engineering plan check services. Such services would be funded by the building permit applicants receiving the service. Permit Review Timeframes The established review time for commercial building permits is 15 days, and for residential projects it is 10 days. The building permit review timeframes have been closely monitored since the beginning of the fiscal year. During the first quarter (July-September), there were 64 plan checks performed by inter-departmental staff, and 76.6% were reviewed on time. The average number of days the reviews were late was 4. During the second quarter (October-December), there was noticeable improvement. There were 78 plan checks performed by inter-departmental staff, and 90.0% were reviewed on time. Of those that were late, the average number of days late was 1. During the first month of the third quarter (January 2011), there were 34 plan checks and 100% were reviewed on time. Computer Software Sunnyvale has a dynamic software program that supports its permit review and issuance function. The program was designed and created by in-house Sunnyvale IT staff, and is maintained by the same staff. It allows for the on-line application and issuance of minor building permits, the scheduling of building and fire inspections, permit and plan history on parcels, customer access to building permit review status, zoning information, etc. The City of Ukiah is currently exploring purchase of a new software system that could provide vastly expanded customer service, on a 24/7 basis, for permit operations. Purchase and installation of this system could be available within this calendar year to improve customer service options. Substitute Building Inspection Substitute building inspection services with our current consultants are expensive, costing as much as $850 per day. Staff has been discussing a possible relationship with the Mendocino County Planning and Building Services Department to provide occasional substitute inspection services that would cost approximately $600 per day. In the event that the City Building Official/Inspector is out of the office for a two-week vacation or training event, this could represent a savings of $2,500.00. Improved Public Handouts/Applicant Response One of the primary reasons that it may take longer than expected to issue a building permit is the lack of understanding by the applicant as to what information is required and resulting insufficient plan preparation. Staff has been revising the public handouts that describe the required information to make them more user- friendly. Staff has also posted additional information on the City's website to assist applicants. For example, information about the new building codes, has been placed on the City's website. Additionally, in an effort to improve and expedite communication, the project architects and engineers can now directly contact the City's structural engineering/plan check consultants to discuss issues and problems with plans that are under review. Fiscal Impact: 1-1 Budgeted FY 09/10 F New Appropriation ❑X Not Applicable Budget Amendment Required city ai- uk ah ITEM NO.: 12b MEETING DATE: March 2, 2011 AGENDA SUMMARY REPORT SUBJECT: STATUS REPORT ON CODE COMPLIANCE ACTIVITIES SUMMARY: This item is intended to provide the City Council with a status report regarding recent code compliance activities. After the loss of the Code Compliance Coordinator in April, 2009, the City Police Department has assumed a more prominent role in the Code Compliance Program and has worked very closely with the Planning Staff, Building Official, and other local and State agencies to manage code violation issues. This added workload on all City personal involved in code compliance has resulted in a primarily complaint driven program focused on public health and safety cases. Major Cases: Team Approach The Police Department, Building Official, Planning Staff, and other agencies are working together on major code compliance cases. These currently include an unauthorized/unpermitted spray paint and powder coating operation; a large vacant warehouse that has experienced trespassing, fires, sanitation issues, and violence; major junk and debris accumulations; marijuana growing cases; and a number of cases involving second hand or pawn dealers operating without the required state license issued by the Police Department. Police Department The Police Department is also working on a number of animal control cases, large vehicles parked for long periods of time on the street, businesses operating without business licenses, abandoned or stored vehicles on the street or private property, and garbage cans being left out for long periods of time in the downtown and elsewhere. Buildinq Official Since the beginning of the fiscal year, the Building Official has issued 23 Stop Work Orders for unauthorized building projects, some of which were the result of complaints and others from in-the-field observations. These cases consume time because the violators are required to submit plans and apply for required permits, and many need guidance with plan preparation and code interpretation. Some cases involve the removal of portions of work so the Building Official can determine if required code construction methods were used. Of the 23 cases, 16 have been satisfactorily resolved. Recommended Action(s): Receive report Alternative Council Option(s): N/A Citizens advised: N/A Requested by: Charley Stump, Director of Planning and Community Development Prepared by: Charley Stump, Director of Planning and Community Development Coordinated with: Jane Chambers, City Manager; Police Captain Trent Taylor; and David Willoughby, Building Official Attachments: None Approved: J Chambers, City Manager Planning Staff Aside from the large public health and safety cases, the Planning Staff is involved in a number of smaller cases. These include a number of use permit and site development permit condition violations; nine unauthorized banners/signs; unpermitted second residential units; unauthorized mobile outdoor sales; excessive lighting; farm animals in the City; and excessive evening construction noise. City Departments have pulled together to handle code compliance cases, with the Police Department managing the largest load. While the primary focus is on large public health and safety cases and violations driven by complaints, Staff has managed to address and resolve many smaller cases as well. Fiscal Impact: Budgeted FY 09/10 ❑ New Appropriation ❑X Not Applicable ❑ Budget Amendment Required 2 City of"'T1/Ciafit. ITEM NO.: 13a MEETING DATE: March 2, 2011 AGENDA SUMMARY REPORT SUBJECT: DISCUSSION AND CONSIDERATION OF A RESOLUTION IN OPPOSITION TO THE GOVERNOR'S PROPOSAL TO ABOLISH REDEVELOPMENT AGENCIES IN CALIFORNIA Summary: As has been discussed at previous City Council/Agency Meetings, Governor Brown has proposed eliminating local redevelopment agencies as part of his 2011-12 Budget. This proposal will severely impede local economic development efforts, programs, and projects. A broad coalition of local governments, business and labor, environmental leaders, affordable housing advocates and community groups all oppose the proposal to abolish redevelopment. The attached draft resolution would add the Ukiah City Council's voice to the mounting opposition. Information prepared by the coalition opposing the State's Redevelopment Proposal can be found online at www.ProtectOurLocalEconomy.com. The Governor's Budget Proposal can be found at http://www.ebudget.ca.qov/. The specific bill language for the Governor's proposal to eliminate redevelopment agencies can be found on the Department of Finance's website at http://www.dof.ca.gov/budgetinq/trailer bill language/financial research and local government/documents/502%20RDA%20Legislation% 202-23P. Of. Recommended Action(s): Approve the Resolution in opposition to the Governor's proposal to abolish Redevelopment Agencies in California Alternative Council Option(s): Remand to staff with further direction. 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 Attachments: 1. Draft Resolution Approved: J.®.e ...~.-~.Q~ Janir~Chamb rs, City Manager Attachment 1 RESOLUTION NO. 2011- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF UKIAH IN OPPOSITION TO THE ADMINISTRATION'S PROPOSAL TO ABOLISH REDEVELOPMENT AGENCIES IN CALIFORNIA WHEREAS, as part of its 2011-12 budget proposal, the Governor has proposed permanently abolishing California's more than 400 local redevelopment agencies; and WHEREAS, this proposal represents more of the same misguided and illegal State budget raids of local government funds that voters have repeatedly sought to end, most recently in November 2010 when an overwhelming 61 % of voters elected to stop State raids of local government funds, including redevelopment funds; and WHEREAS, this proposal will bring very little financial benefit to the State. According to the State Controller's Office, redevelopment agencies have more than $87 billion in bond and other contractual obligations that legally must be repaid before revenues are available to any other purpose. In fact, according to the State Department of Finance's own budget documents, there will be zero State savings in out years from shutting down redevelopment; and WHEREAS, this proposal will destroy local economic development, including hundreds of thousands of jobs and billions of dollars in local economic activity throughout California; and WHEREAS, throughout California, redevelopment activities support 304,000 jobs annually, including 170,600 construction jobs, contribute over $40 billion annually to California's economy in the generation of goods and services, and generate more than $2 billion in state and local taxes in a typical year; and WHEREAS, eliminating redevelopment will take away one of the few tools local governments have to comply with state requirements to plan for more compact urban development supported by transit-oriented development, housing, jobs and infrastructure; and WHEREAS, eliminating redevelopment will destroy the development of affordable housing in California. Redevelopment agencies are the second largest funder of affordable housing, behind only the federal government, responsible for over 98,000 units of affordable housing since 1993; and WHEREAS, shutting down redevelopment agencies is a violation of multiple State and Federal constitutional provisions. THEREFORE, BE IT RESOLVED that the City of Ukiah formally opposes the Administration's proposal to abolish redevelopment in California. THEREFORE, BE IT FURTHER RESOLVED, that the City of Ukiah authorizes its council and city staff to communicate its opposition to this proposal to the Governor, the Legislature, business groups, and citizens. PASSED AND ADOPTED by the Ukiah City Council this 2nd day of March, 2011, by the following roll call vote: AYES: NOES: ABSTAIN: ABSENT: Mari Rodin, Mayor ATTEST: JoAnne Currie, City Clerk ITEM NO.: MEETING DATE: AGENDA SUMMARY REPORT March 2, 2011 SUBJECT: AWARD OF CONTRACT FOR UKIAH MUNICIPAL POOLS RENOVATION PROJECT SPECIFICATION NUMBER 10-19 AND ANY NECESSARY BUDGET AMENDMENTS Summary: Staff is requesting that the City Council award the contract for Ukiah Municipal Pools Renovation Project, Specification No. 10-19. Background: The Ukiah Municipal Swimming Pools, located at Todd Grove Park, provides the only public access to supervised aquatic activities for the residents and visitors of the greater Ukiah area. Additionally, the pools provide an American Red Cross certified swim lesson program. The primary users of the facility are youth, representing approximately 80% of the total attendance. The facility structures, which have been in operation since 1932, have deteriorated beyond repair and require significant reconstruction. The City was awarded a grant from the California State Parks Roberti-Z'berg-Harris Non-Urban Competitive Grant Program for renovation of the Ukiah Municipal Swimming Pools. The City retained Alameida Architecture in 2009 for design and architecture services. The City Council, staff members and community members, worked with Alameida to assemble the pool renovation plan. Discussion: The majority of expenses for the pool renovation are constructions costs. There are however additional costs such as architecture and engineering, construction support, material and lab testing. The cost estimate is included as Attachment #1. As shown in the cost estimate, the total project is estimated to cost nearly $800,000. The proposed project will provide significant repairs to the 25 yard lap pool and improve the pool house for ADA compliance issues. Construction is anticipated to take four to five months and all construction must be completed by December 2011. The contractor will have 180 days to complete the project. As stated in the specifications, the contractor must provide access to the large pool and the pool house during the swim season to allow for summer programming. The work of the renovation project is focusing on the most urgent repairs such as the cracks in the small pool and the piping and decking. Other items, that are not urgent repairs, are included within the Recommended Action(s): Award contract for Ukiah Municipal Pools Renovation Project specification number 10-19 to the lowest responsive, responsible bidder based on bids submitted on March 1, 2011, and approve any necessary budget amendments. Alternative Council Option(s): Remand to staff with direction. Citizens advised: Friends of the Todd Grove Pool Requested by: Prepared by: Katie Marsolan, Community Services Administrator Coordinated with: Jane Chambers, City Manager and Sage Sangiacomo, Assistant City Manager Attachments: 1. Cost Estimate for Pool Renovation Approved: „s~,~,, Jai° a Ch afters, City Manage specifications as add-alternate items. The bid was assembled with five add-alternate items which include installation of the underwater swimming pool lights, installation of the walk-in stairs, installation of the filtration backwash tank, addition of roof monitors in pool house for light and ventilation, and the addition of non-slip surface applied to concrete flooring in the pool house. Based on the engineer's estimate for all items, this project is underfunded and therefore the alternate items will be evaluated when the bids are opened. The Purchasing Department began advertising the project on January 23, 2011. Sealed proposals will be received and opened by the City Clerk on March 1, 2011. Staff is seeking Council approval for award of the contract based on the outcome of the bid opening. A bid tabulation sheet will be provided to the Council and the public at the meeting. The funding for this project is budgeted in account 140.6050.930.008 in the Park Development Fund. The project expenses will be reimbursed by a combination of grants, donations and park development funds. Previously Council approved an internal loan of $148,000, however, staff was directed to return to Council with further information on interest. As part of this Agenda item staff is seeking direction regarding the interest on the internal loan. Staff will provide further information on the interest options at the meeting. Additionally, staff can discuss the project funding which is outlined in the cost estimate. Based on the results of the bid opening staff may provide Council with additional information on a budget amendment as necessary. Fiscal Impact: Not Applicable Budget Amendment Required I Budgeted FY 10/11 ~ New Appropriation 1-1 F Amount Available Source of Funds (title and Account Number Addtl. Appropriation Requested $763,541 Park Development: Pool Construction 140.6050.930.008 Attachment #1 Pool Renovation Cost Estimate 2005 Grant Application 2010 Grant Scope-Change Deck repair 30,000.00 77,000.00 Circulation system replacement 60,000.00 included in s mall pool upgrade cost item PVC liner for the small pool 55,000.00 n/a Comprehensive Small Pool upgrade n/a 269,250.00 Chlorination system 15,000.00 10,000.00 Filtration system 40,000.00 6,000.00 Solar Panel and Photovoltaic Systems 120,000.00 n/a Slide to replace large diving board (remove) 65,000.00 n/a Renovate existing large diving board n/a 5,000.00 Site work; removal of old office and wading pool 10,000.00 n/a Office, restroom, concession & storage rooms 252,936.00 308,000.00 Lifeguard stands at small pool 10,000.00 1,062.50 completed Chairs, benches, tables 6,000.00 4,984.74 completed Subtotal Capital 663,936.00 681,297.24 Other project related costs architecture and engineering 16,850.00 100,000.00 site inspections 2,500.00 5,000.00 material testing and lab 1,000.00 12,000.00 Subtotal Other 20,350.00 117,000.00 Project Grand Total 684,286.00 798,297.24 Funding Sources Funds Available as of 2-23-11 CA Department of Parks and Recreation RZH grant 500,000.00 500,000.00 Community Donations 71,429.00 36,000.00 County per capita: Wattenburger Funds Remaining 37,233.00 37,233.00 City of Ukiah- park dev fee collected FY 2010-2011 42,308.00 42,308.00 City of Ukiah- internal loan 148,000.00 148,000.00 Total all funding sources 798,970.00 763,541.00 Items budgeted with per capita funds These items have been expensed separately to utilize funding that expired December 201 0. Pool Covers and storage reel 25,000.00 16,358.00 City & County per capita- completed Small diving board replacement 5,000.00 11,000.00 County per capita- in progress ADA Lift n/a 10,000.00 County per capita- in progress r~ C~ MEMORANDUM To: Members of the City Council From: Katie Marsolan, Community Services Administrator cc: JoAnne Currie, City Clerk Date: March 2, 2011 Re: ITEM 13b - Meeting of March 2, 2011, Ukiah Municipal Pools Renovation Project, Specification No. 10-19 Attachment "A" for your review is the Bid Tabulation sheet for the above referenced project. The bid opening occurred at 2:00 PM Tuesday, March 1, 2011. Seven contractors submitted bids. As outlined in the bid schedule the lowest bid was based upon the base bid item. The lowest responsive, responsible bidder, was Cupples & Sons Construction, Inc. of Hopland, CA with a bid of $480,209. Based on the budget for the project, staff is recommending that the City award alternate items one, two and five. The cost of the base bid plus alternate items #1, #2, and #5 equals $606,669. Fiscal Impact: Budgeted FY Budget Amendment I-I X 10/11 11 New Appropriation F1 Not Applicable ❑ Required Funds Available Source of Funds (title and Account Number Addtl. Appropriation $763,541 Park Development: Pool Const. 140.6050.930.008 RECOMMENDED ACTION Award the construction contract for Renovation of the Ukiah Municipal Pool, Specification No. 10-19 to Cupples & Sons Construction Inc. of Hopland, CA in the amount of $606,669. 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ITEM NO.: 13c MEETING DATE: March 2, 2011 AGENDA SUMMARY REPORT SUBJECT: CONSIDERATION OF RESOLUTIONS OF THE UKIAH CITY COUNCIL IN SUPPORT OF THE 12TH DISTRICT AGRICULTURAL ASSOCIATION AND THE MENDOCINO COUNTY FAIR AND APPLE SHOW. Summary: The 12th District Agricultural Association (home of the Redwood Empire Fair) and the Mendocino County Fair and Apple Show are requesting that the City Council consider adopting resolutions supporting the operation and activities of the local fairgrounds. These agencies provide and promote significant economic and cultural activities for the community. In addition, the facilities are important public safety staging areas. The Governor's proposed budget includes significant implications for the immediate and long term viability and operation of our local fairgrounds. The attached resolutions identify the issues and importance of the local fair operations and facilities. In addition, Jennifer Seward, CEO of the 12th District Agricultural Association, and other representatives will be available to address questions regarding the requests for support. Recommended Action(s): Approve Resolutions of the Ukiah City Council in support of the 12 District Agricultural Association and the Mendocino County Fair and Apple Show. Alternative Council Option(s): Remand to staff with further direction. Citizens advised: Al Beltrami, Board of Directors, 12 District Agricultural Association Requested by: Jennifer Seward, CEO 12th District Agricultural Association Prepared by: Sage Sangiacomo, Assistant City Manager Coordinated with: Jane Chambers, City Manager Attachments: 1. Draft Resolution Supporting the 12tH District Agricultural Association 2. Draft Resolution Supporting the Mendocino County Fair and Apple Show Approved: .r- I S-4 J Cha ers, City Manager Attachment 1 RESOLUTION NO. 2011- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF UKIAH IN SUPPORT OF THE 12TH DISTRICT AGRICULTURAL ASSOCIATION FUNDING WHEREAS, as part of his 2011-12 budget presentation, the Governor has proposed to permanently discontinue funding for the 12th District Agricultural Association; and WHEREAS, the 12th District Agricultural Association currently houses four schools and RV Park a motorized racing facility and generated $8,262,00 in spending activity in 2009, benefiting the local economy and creating a economic benefit for the City of Ukiah and its residents; and WHEREAS, this severe budget proposal can threaten the loss of all such services which the fair provides to Ukiah and its residents; and WHEREAS, this proposal is "pennywise and pound foolish" by incurring more expense to the State as the cost of maintaining the 52 acres located in the center of Ukiah would far out weight the allocation that the fair receives, with just the security aspect being more than the current funding amount; and WHEREAS, this proposal will eliminate 93 jobs that are created as a result of spending by the 12th District Agricultural Association, it's support businesses and its attendees, with the labor income generated by these additional jobs is projected to be approximately $2,707,000.00 annually.; and WHEREAS, the 12th District Agricultural Association has been utilized as a fire camp by CalFire, law enforcement training center, a heating and cooling center by the State of California and is an Office of Emergency Service evacuation center in time of emergency requiring the need for the facilities existence; and WHEREAS, by eliminating the funding Mendocino County would possibly lose the center of the community that provides a place for all people from every corner of the county to meet including two fairs and multiple fundraisers that cannot be served by other facilities; and WHEREAS, without the funding an estimated loss directly to the City of Ukiah $91,000.00 created from the increased business activity caused by the fair, its attendees and "interim" events. WHEREAS, the City of Ukiah would suffer a direct loss of approximately $111,000.00 generated by the 12th District Agricultural Assocation utilization of City utilities THEREFORE, BE IT RESOLVED that the City Council of the Ukiah formally supports the continued funding of the 12th District Agricultural Association by the State of California. THEREFORE, BE IT FURTHER RESOLVED, that the City of Ukiah Council authorizes and directs its staff to communicate this resolution to the Governor, the Legislature, business groups, and citizens. PASSED AND ADOPTED by the Ukiah City Council this 2nd day of March, 2011, by the following roll call vote: AYES: NOES: ABSTAIN: ABSENT: Mari Rodin, Mayor ATTEST: JoAnne Currie, City Clerk Attachment 2 RESOLUTION NO. 2011- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF UKIAH IN SUPPORT OF THE MENDOCINO COUNTY FAIR AND APPLE SHOW FUNDING WHEREAS, as part of its 2011-12 budget proposal, the Governor has proposed to permanently discontinue funding for the Mendocino County Fair and Apple Show; and WHEREAS, this proposal represents the possible loss of services the fair provides to City of Ukiah residents, the Mendocino County Fair and Apple Show currently houses a Mendocino County Sheriff outpost, RV Park, Anderson Valley High School football field and Anderson Valley Little League Field and generated $2,095,000.00 in spending activity alone in 2009 benefiting the local economy and creating an of economic benefit for city and county residents; and WHEREAS, this proposal is "pennywise and pound foolish" as it will bring even more expenses to the County as the cost of maintaining the 32 acres located in Boonville would far out weight the allocation that the fair receives, with just the security aspect being more than the current funding amount; and WHEREAS, this proposal will possibly eliminate 23 jobs that are created as a result of spending by the Mendocino County Fair and Apple Show, it's support business and its attendees, the labor income generated by these additional jobs is projected to be approximately $787,000.00 annually; and WHEREAS, the Mendocino County Fair and Apple Show has been utilized as a fire camp by CalFire, law enforcement training center, a heating and cooling center by the State of California and is an Office of Emergency Service evacuation center for both the public and animals in time of emergency requiring the need for the facilities existence; and WHEREAS, eliminating the funding Mendocino County would possibly lose the center of the community that provides a place for all people from every corner of the county to meet including a fair and multiple fundraisers that cannot be served by any other facility; and WHEREAS, an estimated annual additional business tax of $10,700.00 is generated annually, indirectly impacting and the City of Ukiah and the surrounding areas created from the increased business activity caused by the fair, its attendees and "interim" events. THEREFORE, BE IT RESOLVED that the City of Ukiah formally supports the continued funding of the Mendocino County Fair and Apple Show in Boonville, CA by the State of California. THEREFORE, BE IT FURTHER RESOLVED, that the City of Ukiah authorizes its council and city staff to communicate this resolution to the Governor, the Legislature, business groups, and citizens. PASSED AND ADOPTED by the Ukiah City Council this 2nd day of March, 2011, by the following roll call vote: AYES: NOES: ABSTAIN: ABSENT: Mari Rodin, Mayor ATTEST: JoAnne Currie, City Clerk Attachment 1 RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF UKIAH IN SUPPORT OF THE 12TH DISTRICT AGRICULTURAL ASSOCIATION FUNDING WHEREAS, as part of his 2011-12 budget presentation, the Governor and the Legislature has proposed to permanently discontinue funding for the 12th District Agricultural Association; and WHEREAS, the 12th District Agricultural Association currently houses four schools , an RV Park a motorized racing facility and generated $8,262,000 in spending activity in 2009, benefiting the local economy and creating a economic benefit for the City of Ukiah, the Mendocino County and its residents; and WHEREAS, this severe budget proposal can threaten the loss of all such services which the fair provides to Ukiah, Mendocino County and its residents; and WHEREAS, this proposal is "pennywise and pound foolish" by incurring more expense to the State as the cost of maintaining the 52 acres located in the center of Ukiah would far outweigh the allocation that the fair receives, with just the security aspect being more than the current funding amount; and WHEREAS, this proposal will eliminate 93 jobs that are created as a result of spending by the 12th District Agricultural Association, its support businesses and its attendees, with the labor income generated by these additional jobs projected to be approximately $2,707,000.00 annually.; and WHEREAS, the 12th District Agricultural Association has a core function of government for the State as it is utilized as a fire camp by CalFire, law enforcement training center, a heating and cooling center by the State of California and is an Office of Emergency Service evacuation center in time of emergency requiring the need for the facilities existence; and WHEREAS, by eliminating the funding Mendocino County would possibly lose the center of the community that provides a place for all people from every corner of the county to meet including two fairs and multiple fundraisers that cannot be served by other facilities; and WHEREAS, without the funding an estimated loss directly to the City of Ukiah $91,000.00 created from the increased business activity caused by the fair, its attendees and "interim" events. WHEREAS, the City of Ukiah would suffer a direct loss of approximately $111,000.00 generated by the 12th District Agricultural Association's utilization of City utilities THEREFORE, BE IT RESOLVED that the City Council of Ukiah formally supports the continued funding of the 12th District Agricultural Association by the State of California, as a core function of government. THEREFORE, BE IT FURTHER RESOLVED, that the City of Ukiah Council authorizes and directs its staff to communicate this resolution to the Governor, the Legislature, business groups, and citizens. PASSED AND ADOPTED by the Ukiah City Council this 2nd day of March, 2011, by the following roll call vote: AYES: NOES: ABSTAIN: ABSENT: Mari Rodin, Mayor ATTEST: JoAnne Currie, City Clerk V,,_&4 Attachment 1 RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF UKIAH IN SUPPORT OF THE MENDOCINO COUNTY FAIR AND APPLE SHOW FUNDING WHEREAS, as part of its 2011-12 budget proposal, the Governor and the Legislature has .proposed to permanently discontinue funding for the Mendocino County Fair and Apple Show; and WHEREAS, this proposal represents the possible loss of services the fair provides to City of Ukiah residents, the Mendocino County Fair and Apple Show currently houses a Mendocino County Sheriff outpost, RV Park, Anderson Valley High School football field and Anderson Valley Little League Field and generated $2,095,000.00 in spending activity alone in 2009 benefiting the local economy and creating an of economic benefit for city and county residents; and WHEREAS, this proposal is "pennywise and pound foolish" as it will bring even more expenses to the County as the cost of maintaining the 32 acres located in Boonville would far outweigh the allocation that the fair receives, with just the security aspect being more than the current funding amount; and WHEREAS, this proposal will possibly eliminate 23 jobs that are created as a result of spending by the Mendocino County Fair and Apple Show, its support businesses and its attendees, the labor income generated by these additional jobs is projected to be approximately $787,000.00 annually; and WHEREAS, the Mendocino County Fair and Apple Show has a core function including being utilized as a fire camp by CalFire, law enforcement training center, a heating and cooling center by the State of California and is an Office of Emergency Service evacuation center for both the public and animals in time of emergency requiring the need for the facility's existence; and WHEREAS, by eliminating the funding, Mendocino County would possibly lose the center of the community that provides a place for all people from every corner of the county to meet including a fair and multiple fundraisers that cannot be served by any other facility; and WHEREAS, an estimated annual additional business tax of $10,700.00 is generated annually, indirectly impacting and the City of Ukiah and the surrounding areas created from the increased business activity caused by the fair, its attendees and "interim" events. THEREFORE, BE IT RESOLVED that the City of Ukiah formally supports the continued funding of the Mendocino County Fair and Apple Show in Boonville, CA, as a core function of government facility, by the State of California. THEREFORE, BE IT FURTHER RESOLVED, that the City of Ukiah authorizes its council and city staff to communicate this resolution to the Governor, the Legislature, business groups, and citizens. PASSED AND ADOPTED by the Ukiah City Council this 2nd day of March, 2011, by the following roll call vote: AYES: NOES: ABSTAIN: ABSENT: Mari Rodin, Mayor ATTEST: JoAnne Currie, City Clerk LOCAL FAIR AND ATTENDEES' SPENDING SNAPSHOT - BY THE DOLLAR The Redwood Empire Fair is an economic engine generating tangible benefits beyond the educational, cultural and agricultural tradition. The Redwood Empire Fair generated approximately $8,262,000 in spending activity alone in 2009 - benefiting the local economy and creating a ripple effect of economic benefit for the state. The network of California fairs generates upwards of $2.5 billion dollars in economic activity benefiting the local, state and global economy.' The Redwood Empire Fair creates California jobs through an economic ripple effect of fair patron spending and the business activity required in support of the fair's traditional agricultural educational activities. The equivalent of 93 jobs are created as a result of spending by the Redwood Empire Fair, its support businesses and its attendees. The labor income generated by these additional jobs is projected to be approximately $2,707,000 annually. The Redwood Empire Fair generates business tax revenue through the collection of state and local sales taxes, transient occupancy taxes, possessory interest taxes and other taxes and fees. These revenues further generate economic activity by providing for programs to benefit the local TOPICS: community. An estimated $91,000 annually in additional business taxes will be created from the Economic Impacts increased business activity caused by the fair, its attendees and "interim" events or events held on the fairgrounds occurring throughout the year. Spending Jobs Personal Income Tax Revenue Summary ECONOMIC IMPACTS The Redwood Empire Fair, as part of the network of California fairs, provides an enormous return on investment in economic and other terms. Fairs celebrate our history and heritage. Fairs are an educational opportunity for youth, and provide wholesome entertainment for families. Livestock and 4-H programs support California's vibrant agriculture sector. Children and people of all ages enter their artwork, baked goods, photography and other homemade products in pursuit of coveted blue ribbons. Many non-profit and charity-based . , organizations raise substantial portions of their annual budgets through fundraising booths and activities at fairs. Fairgrounds are even used as staging sites and rescue locations during forest fires, floods, earthquakes and other emergencies. The network of California fairs also has a significant impact on our economy. Fairs infuse $2.55 billion annually into the California economy, create 28,000 jobs and generate almost $136 million in State and local government tax revenues.2 SPENDING $10 $8 - .!4- J $6 a.. $4 $2 $0 2002 2003 2004 2005 2006 2007 2008 2009 2010 JOBS Jobs are created directly by fair organizations, 125 exhibitors, carnivals and commercial businesses. Jobs are also created by the ripple loo effect of fair spending, causing additional employment by vendors, suppliers and businesses 75 where goods and services are purchased in the community. Events at the Redwood Empire 50 Fairgrounds created the equivalent of 93 jobs in 25 2009 a In 2009, 161,179 people attended fairs and events at the Redwood Empire Fair. Fairgoers spent money on tickets, food, carnivals and other fair products and services. As well, fair organizers, concessionaires and commercial exhibitors spent money on supplies, lodging and meals. These purchases have a ripple effect on the local economy by infusing dollars that are spent again by others. Together, direct spending and indirect ripple effect spending represent a significant economic impact. For the Redwood Empire Fair, events created a total spending impact of approximately $8,26 2,000 on the local economy.' 1-1-4 101 103 101 99 =25 Jobs 2003 2004 2005 2006 2007 2008 2009 PERSONAL INCOME Income earned by fair and event workers also has a ripple effect on the economy - dollars they spend become income for other workers in the local area. Fair and other events held at the Redwood Empire Fairgrounds created approximately $2,707,000 in overall salary and benefits for employees.' $3.5~ $2.b $2:88 $3.0-- _-J $2.5 $1.5 $1.0- - T --$0.0 $0.5 2002 2003 2004 2005 2006 2007 2008 2009 2010 TAX REVENUE $125 8 $9~ $95-=$9~ ~9~ $100- $ J J J -J $75 r $50 1 - - - $25 1. $0 1 2002 2003 2004 2005 2006 2007 2008 2009 2010 SUMMARY The direct and indirect economic activity created by fair events leads to revenues for state and local governments. Sales tax, possessory interest tax for the use of government property, transient occupancy taxes and business license taxes are paid as a result of fair event activities. Tax revenues to state and local governments generated by fairs and events held at the Redwood Empire Fair in 2009 are estimated at approximately $91,000.6 The formulas for estimating a fair's economic impacts for a given year were developed from the 2002 economic impact study, adjusted by the consumer price index (CPI) and factoring that year's overall event attendance and operating expenditures. As such, they are estimates; however, they are also a clear indication of the importance of the impact of fair events on state and local economies. The California Department of Food and Agriculture, Division of Fairs and Expositions will continue to assess and monitor the economic impact of fair events in order to provide relevant information to fair organizers, elected officials and interested community representatives. C CALIFORNIA DEPARTMENT OF FOOD & AGRICULTURE Division of Fairs & Expositions c1010 a Hurley Way, Suite 200 ~i Sacramento, CA 95825 (916) 263-2955 • (916) 263-2969 cdfa.ca.gov/fe • cafairs.com NOTES '"Fairs: Exploring a California Gold Mine" prepared by KPMG LLP, 2003 z Ibid. 3 The CPI-adjusted 2009 formula that is used to estimate the overall spending impact for the Redwood Empire Fair is: fair and event attendance multiplied by 26.84, plus fair operating expenditures multiplied by 4.49, rounded to the nearest thousand. 4 The CPI-adjusted 2009 formula that is used to estimate the number.of jobs created, directly and indirectly, for the Redwood Empire Fair is: fair and event attendance multiplied by 0.00031, plus fair operating expenditures multiplied by 0.00005. 'The CPI-adjusted 2009 formula to estimate the overall income earned by workers, directly and indirectly, for the Redwood Empire Fair is: fair and event attendance multiplied by 8.80, plus fair operating expenditures multiplied by 1.47, rounded to the nearest thousand. 'The tax impacts estimating methodology was developed from the 2003 economic impact study and is unique for each fair - BE estimates that the total tax revenue generated by the Redwood Empire Fair for a given year is 1.10% of the total spending created for that year, rounded to the nearest hundred. City ,J7 ~Z1kjaft ITEM NO.: CC NB 13 D, E, F URANB8A,B,C MEETING DATE: March 2, 2011 UKIAH CITY COUNCIL AND UKIAH REDEVELOPMENT AGENCY AGENDA SUMMARY REPORT SUBJECT: CONSIDERATION OF RESOLUTIONS APPROVING A PROJECT FUNDING AGREEMENT BETWEEN THE AGENCY AND CITY, A BUDGET AMENDMENT PURSUANT TO THE 1996 LOAN AGREEMENT BETWEEN THE AGENCY AND CITY, AND RESOLUTIONS CONVEYING AGENCY PROPERTY TO THE CITY. Recommended Action(s) for: City Council: 1. Adopt Resolution of the City Council of the City of Ukiah approving a funding agreement with the Redevelopment Agency attached as Attachment 3. 2. Pursuant to the provisions of the 1996 Loan Agreement attached as Attachment 4, approve a budget amendment and transfer in the amount of $6,000,000 to the Ukiah Redevelopment Agency Administration Fund to be loaned to the Agency for public infrastructure projects. 3. Adopt Resolution of the City Council of the City of Ukiah approving Purchase and Sale Agreement (Attachment 5) for the conveyance of Agency property to the City of Ukiah attached as Attachment 7. Ukiah Redevelopment Agency: 1. Adopt Redevelopment Agency Resolution approving Project Funding Agreement with the City of Ukiah attached as Attachment 1. 2. Pursuant to the provisions of the 1996 Loan Agreement (Attachment 4) request budget amendment by the City of Ukiah in the amount of $6,000,000 as a loan from the City to the Agency for public infrastructure projects. 3. Adopt Resolution of the Ukiah Redevelopment Agency approving Purchase and Sale Agreement between Agency and City (Attachment 5) for the conveyance of Agency property to the City attached as Attachment 6. Alternative Council Option(s): Remand to staff with an alternate direction. Citizens advised: N/A Requested by: N/A Prepared by: David Rapport, City/Agency Attorney, Sage Sangiacomo, Assistant City Manager and Guy Mills, Project & Grant Administrator Coordinated with: Jane Chambers, Executive Director; Robert Gamble, Public Financial Management (PFM), Financial Advisor; and Iris Yang, Best Best & Krieger LLP, URA's Specialized Legal Counsel. Attachments: Funding Agreement and Resolutions 1. Ukiah Redevelopment Project Area Funding Agreement between City and URA 2. Resolution of the URA approving a Funding Agreement and Findings 3. Resolution of the City approving a Funding Agreement and Findings Loan 4. Loan Agreement between the Ukiah Redevelopment Agency and City of Ukiah Property Conveyance 5. Agreement of Purchase and Sale 6. Resolution of the URA for Conveyance of Agency Property and Findings 7. Resolution of the City for Conveyance of Agency Property and Findings 8. Transfer Property List Approved: Jan/ 6ambers, City Manager/Executive Director BACKGROUND: On January 10, 2011, the Governor released his 2011/12 budget proposal. A major provision of the Governor's budget that significantly affects local government is the proposed elimination of redevelopment agencies throughout the State by July 1, 2011, and use of the local tax increment from Redevelopment to fund existing State obligations. The proposal jeopardizes the projects and programs which the City and its Redevelopment Agency ("Agency") have undertaken to promote jobs, services, and economic development. Legislative language detailing the proposed elimination of redevelopment agencies was released last week and is under review by a Budget Conference Committee in the Legislature. In order to accomplish such rapid termination of redevelopment as part of the overall budget package, the proposal contemplates urgency legislation that could be adopted by mid-March 2011. If the Legislation is enacted as currently drafted, immediately upon its enactment, subject to an exemption for existing debts and obligations, it would block the Agency from taking any actions in pursuit of its existing projects and programs and would place all assets of the Agency under the jurisdiction of an Oversight Board charged with overseeing the winding up the Agency's affairs. The proposed actions discussed below are intended to take advantage of the exception for existing debts and obligations and to transfer some Agency assets to the City before the legislation is enacted. In a summary released by the California Redevelopment Association, Best Best & Krieger reports the draft legislation released by the Department of Finance on February 23 is generally consistent with the Governor's proposal and the general descriptions contained in testimony from the Department of Finance in legislative hearings that took place over the last few weeks. The general outline of the legislation is as follows: 1. Commencing with the effectiveness of the bill (the day the Governor signs the bill), virtually all redevelopment activity would be suspended except paying existing obligations. 2. Redevelopment agencies would continue to operate under restrictions until July 1, 2011, when all agencies would be abolished. 3. Effective July 1, successor agencies would take over the assets and obligation of the former redevelopment agencies. The City would be the successor agency for its Redevelopment Agency, unless it declined to assume that role. The successor agency, including the City, would be subject to direction from an Oversight Board. 4. Successor agency would be charged with wrapping up the operations of the former redevelopment agency under the direction of an oversight board dominated by appointees from education and county interests. 5. County auditor-controllers would essentially become the treasurers for all the redevelopment agencies in the county. 6. In 2011-12, $1.7 billion would be paid to the State for trial court and Medi-Cal costs from the tax increment revenues.of the redevelopment agencies. A small amount would allegedly be available for distribution to cities and counties. 7. In subsequent fiscal years, what was formerly tax increment will be distributed to taxing agencies after first paying amounts due on existing obligations under current payment schedules. 8. Some, but not all, prior obligations will have priority over payment to the State and taxing agencies. Some obligations which had a first priority on tax increment will be subordinated to payments to the State and taxing agencies. Over the past year, the Agency has been working toward the development of a redevelopment bond issuance to fund necessary and planned public infrastructure and housing projects that will support economic development and low income housing activities for the community. On February 23, the Agency approved a bond issuance that would result in approximately $4 million in non-housing funds and $2 million in housing funds. The Agency's redevelopment legal counsel continues to maintain that the bond issuance is the most defensible strategy to fund the Agency's planned projects and protect those funds from the State. The Agency is proceeding in its effort to close on the sale of the bonds before any proposed legislation is enacted. Discussion: Because of the potential impact of the pending legislation, staff is proposing that the City and Agency consider several actions intended to preserve the City's ability to complete projects and programs in which it has already invested substantial funds and effort which are very important to the ongoing redevelopment and economic development of the City. While these actions are being proposed at this time because of the prospect of State action precluding the use of Redevelopment funds, the identification and funding of the projects outlined in the following resolutions and agreements implement previous planning efforts and Agency Board actions and agreements. The following summarizes the agreements, resolutions and actions recommended for adoption by the City and the Agency. RECOMMENDATIONS: Funding Agreement and Resolutions Attached as Attachments 1 and 2 are two resolutions, one to be adopted by the City Council and one to be adopted by the Agency, approving a Project Funding Agreement between the City and the Agency attached as Attachment 3. Resolutions: The two resolutions contain recitals identifying the past actions and agreements the City and the Agency have undertaken to promote the development of the Redwood Business Park, including the assembly of acreage and the approval of the Exclusive Negotiating Agreement with Costco. The recitals point out that under the ENA, the Agency has a contractual obligation to enter a Disposition and Development Agreement with Costco, if Costco receives the necessary permits from the City for which it has already applied. Under the DDA the Agency will sell Costco in excess of 15 acres that the Agency has purchased. Moreover, specific public infrastructure projects will be required for the build-out of the RBP, including the Costco store. The resolutions make findings and determinations required by the Community Redevelopment Law. They approve the Project Funding Agreement and authorize the City Manager and the Agency's Executive Director to sign the agreement and take any other actions necessary to carry out the obligations of the City and the Agency under the Agreement. Project Funding Agreement: Under the Project Funding Agreement the City agrees to be responsible for the design and construction of Public Improvements within the Redwood Business Park identified by the City and assumes the responsibility to conduct environmental review required prior to the approval of final design and construction of these projects. The Agency agrees to pay the City not to exceed $6 Million to pay the City for the cost of performing the City's obligations under the agreement. The Agreement obligates the Agency to pay this money to the City for these purposes from any funds available to the Agency, including the proceeds of any bonds issued by the Agency and Tax Increment revenue to the Agency from the project area. The Agreement declares that it constitutes an indebtedness of the Agency and a pledge of the Agency's Tax Increment revenues. Purchase and Sale Agreement and Resolutions Resolutions: Attached as Attachment 5 is a Purchase and Sale Agreement and two resolutions, one to be adopted by the Agency (Attachment 6) and one to be adopted by the City (Attachment 7), which approve the agreement and authorize the Agency Executive Director and the City Manager to sign the agreement and to take necessary action to perfect the conveyances of real property under the agreement. The resolutions make certain findings and determinations that the conveyances are consistent with the Agency's redevelopment and implementation plans and will benefit the project area. Purchase and Sale Agreement: Under the Purchase and Sale Agreement, the Agency agrees to sell and the City agrees to buy for one dollar parcels of real property described by Mendocino County Assessor Parcel Number and location in a spreadsheet attached to the agreement. The property includes all of the parcels owned by the Agency in the Redwood Business Park, on Airport Park Blvd. south of the RBP, the Alex R. Thomas Plaza, and the parking lot on Main Street. The spread sheet includes property on Cleveland Lane and North Main Street acquired with the Agency's low and moderate income housing funds. The City agrees to pay all costs necessary to close on the sale of this property to the City. If the resolutions approving the agreement are adopted, the Agency and the City wil endeavor to record deeds before the end of the next week. Loan under 1996 Loan Agreement In 1996, the City and the Agency executed a loan agreement which quantified past loans from the City to the Agency as they existed when the agreement was approved, spelled out the terms under which the Agency would repay the City and established a procedure for the City making future loans to the Agency for expenses and projects. The agreement also spells out the terms under which the City will advance loan funds for Agency expenses and projects and the Agency will repay those loans. To obtain additional loans, the agreement requires the Agency to request the City to make a budget amendment, setting aside in a Ukiah Redevelopment Agency Administration Fund money to be advanced to the Agency as needed for Agency expenses or projects. Once set aside, the City can advance those funds to pay for Agency expenses or projects as they are incurred by the Agency. The loans earn 6% simple annual interest once they are advanced and until they are repaid. The Agency is required to repay all or any portion of the principle and accrued interest upon demand of the City. Staff recommends that the Agency request the City Council to approve a budget amendment for a $6 Million to loan to the Agency under the 1996 Loan Agreement for infrastructure projects in the Redwood Business Park. Staff has identified the closure, post-closure and self-insurance funds of the solid waste disposal site as the source of funding. The $6 Million Dollar figure is based on engineering estimates that have been prepared for all of the projects required in the RBP, including improvements to Airport Park Blvd., Airport Road, Hastings Avenue, utility projects, signalization projects and Talmage Road on-ramp projects. Not all of these projects may be constructed, other funds may defray some of the cost or the projects may be . phased. Accordingly, the loan may not exceed that amount, but less than the full amount may be advanced. The loan is intended as a back-up, if the Legislature adopts legislation which prevents the Agency from closing on the bonds which the Agency has authorized. The loan represents an internal financing from invested City funds and is a permissible investment under Section V(e) of the City's Statement of Investment Policy and Government Code Section 53601(e) which allow the City to invest in bonds, notes, warrants and other certificates of indebtedness of any local agency within the state. FUNDING AGREEMENT UKIAH REDEVELOPMENT PROJECT AREA (Public Improvements) Attachment #1 THIS FUNDING AGREEMENT is entered into as of March 2, 2011, by and between the REDEVELOPMENT AGENCY OF THE CITY OF UKIAH, a public body, corporate and politic (Agency), and the CITY OF UKIAH, a municipal corporation (City). Recitals A. Pursuant to the Community Redevelopment Law of the State of California (Health and Safety Code Section 33000 et seq.), the Agency is a duly constituted redevelopment agency under the laws of the State of California and pursuant to said laws is carrying out the Redevelopment Plan (Redevelopment Plan) for the Ukiah Redevelopment Project (Redevelopment Proj ect). B. The major goals and objectives of the Redevelopment Plan include, among others, the elimination of blighting influences and the correction of environmental deficiencies in the Redevelopment Project Area, improving pedestrian and vehicular circulation in the Redevelopment Project Area, and the installation of new or replacement of existing public improvements which are currently inadequate to serve the area. The Redevelopment Plan authorizes the Agency to pay for, develop, or construct any publicly-owned improvements, either within or without the Project Area, for itself or for any public body or entity, which improvements are or would be of benefit to the Project Area. The Five Year Implementation Plan for the Ukiah Redevelopment Plan also specifically identifies the traffic, drainage and utility improvements as the public improvements projects to be undertaken by the Agency. C. The Redwood Business Park is a potential major commercial-retail center within the Redevelopment Project Area which requires the installation certain traffic, drainage and utility improvements (the "Public Improvements") in order to induce private investment. D. In furtherance of an Agreement between the Agency and Costco Wholesale Corporation, approved by the Agency in January 2011 (the "Agreement"), the Agency desires to cooperate with the City and provide funding to assist with the costs necessary for the Public Improvements at the Redwood Business Park, which Public Improvements will serve and be of primary benefit to the Ukiah Redevelopment Project Area. E. Pursuant to Health and Safety Code Section 33445, the Agency is authorized, with the consent of the City Council, to pay all or part of the value of the land for and the cost of the design, installation and construction of any building, facility, structure, or other improvements which are publicly owned either within or without the Redevelopment Project Area, upon a determination by the City Council and Agency that such buildings, facilities, structures or other improvements are of benefit to the Redevelopment Project by helping to eliminate blight within the Redevelopment Project Area, that no other reasonable means of financing such buildings, 1 Ukiah FA 82661.00001\5861357.1 facilities, -structures, or other improvements are available to the community, and that the payment of funds for the cost of such buildings, facilities, structures or other improvements is consistent with the Agency's five-year Implementation Plan for the Redevelopment Project. F. Section 33678 of the Community Redevelopment Law provides that the portion of taxes allocated to the Agency pursuant to Section 33670(b) of the Community Redevelopment Law (Tax Increments) will not be deemed the receipt or appropriation of proceeds of taxes for the purposes of Article XIII.B. of the California Constitution so long as such Tax Increments are used for redevelopment activity which primarily benefits the Redevelopment Project Area. G. In order to enable the City to continue its efforts to construct the Improvements for the benefit of the Redevelopment Project Area, and as an inducement to the City to do so, the parties desire to enter into this Agreement providing for the Agency to contribute to the City a portion of the costs relating to the development and construction of the Improvements. Agreement THE AGENCY AND THE CITY HEREBY AGREE AS FOLLOWS: 1. The City shall be responsible for all of the design and construction of the Public Improvements identified by the City in the Redwood Business Park and that will serve the Redevelopment Project Area. 2. The City shall be responsible for conducting environmental review prior to its approval of the Improvements, final design and construction and as a prerequisite for use of any of the Agency Contribution (as defined below) for final design and construction. It is understood and agreed that the Agency Contribution provided in this Agreement may be used to conduct such environmental review. The City shall cause the environmental review to be undertaken as soon as feasible. 3. The City shall cause such development and construction work to be undertaken as soon as feasible and continue in order to ensure that the Improvements are completed in a timely manner. 4. In consideration of the undertakings of the City under Sections 1 through 3 of this Agreement, the Agency shall pay to the City (or pay to a third parry on behalf of the City) a portion of the actual costs incurred by the City as necessary for the design, environmental review and construction of the Improvements, in a total amount not to exceed SIX MILLION-DOLLARS ($6,000,000) (Agency Contribution). The Agency shall make such Agency Contribution to (or on behalf of) the City from any funds available to the Agency for such purpose, including the proceeds of any bonds issued by the Agency, loans and Tax Increments from the Redevelopment Project Area, at the Agency's sole discretion. 5. Failure by either parry to perform its obligations hereunder shall constitute a default under this Agreement, and the other party may institute legal action to cure, correct or remedy such 2 Ukiah FA 82661.00001\5861357.1 default, to recover damages for such default or to obtain any other remedy, including injunctive or declaratory relief, consistent with the purpose of this Agreement. 6. This Agreement constitutes an indebtedness of the Agency incurred in carrying out the Redevelopment Project, and a pledge of Tax Increments from the Redevelopment Project to repay such indebtedness, under the provisions of Section 16 of Article XVI of the California Constitution and Section 33670 et seq. of the Health and Safety Code; provided, however, that such pledge of Tax Increments shall always be subordinate and subject to the right of the Agency to pledge or commit Tax Increments from the Redevelopment Project Area to repay bonds or other indebtedness incurred by the Agency in carrying out the Redevelopment Project. 7. Pursuant to Section 895.4 of the Government Code, the Agency and City agree that each will assume the full liability imposed upon it or any of its officers, agents or employees for injury caused by a negligent or wrongful act or omission occurring in the performance of this Agreement and each party agrees to indemnify and hold harmless the other parry for any loss, costs or expense that may be imposed upon such other party by virtue of Sections 895.2 and 895.6 of the Government Code. 8. This Agreement and the obligations of the City and the Agency hereunder shall terminate upon the completion of the construction of the Improvements by the City and the payment of the Agency Contribution as set forth in Section 4. 9. Within 30 calendar days of the end of each fiscal year, the City shall prepare and deliver to the Agency a report of activities and accomplishments with regard to the Improvements, together with 1) any environmental documentation or notice required as a result of any activity undertaken in compliance with this Agreement that is a project under CEQA and/or NEPA, 2) evidence of the costs incurred by the City to provide the Public Improvements provided for under this Agreement, and 3) any other information reasonably requested by the Agency relating to this Agreement or the Public Improvements (City's Report). Such information, provided in a timely manner, shall assist the Agency to fulfill its reporting requirements regarding construction of capital improvements under California Health and Safety Code Section 33080 et seq. IN WITNESS WHEREOF, the Agency and the City have executed this Agreement as of the date first above written. REDEVELOPMENT AGENCY OF THE CITY OF UKIAH By: By: Executive Director Attest: Secretary Ukiah FA 82661.00001\5861357.1 Approved as to Form By; Agency Counsel CITY OF UKIAH By: Attest: By: City Clerk Approved as to Form: By: City Attorney City Manager 4 Ukiah FA 82661.00001\5861357.1 Attachment #2 RESOLUTION NO. RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF UKIAH APPROVING A FUNDING AGREEMENT WITH THE CITY OF UKIAH AND MAKING CERTAIN FINDINGS THAT THE PUBLIC IMPROVEMENTS BENEFIT THE UKIAH REDEVELOPMENT PROJECT AREA WHEREAS, pursuant to the Community Redevelopment Law of the State of California (Health and Safety Code Section 33000 et seq.), the Redevelopment Agency of the City of Ukiah ("Agency") is carrying out the Redevelopment Plan for the Ukiah Redevelopment Project Area ("Redevelopment Project Area"); and WHEREAS, in furtherance of the Redevelopment Plan, the Agency adopted a Five-Year Implementation Plan, as required by Health and Safety Code Section 33490, covering the period 2007-2012 ("Implementation Plan); and WHEREAS, the Agency has been involved in the preparation of and approved an Exclusive Negotiating Agreement ("ENA") with Costco Wholesale Corporation at the Redwood Business Park in an effort to assist in the elimination of economic and physical blight through focused and intense efforts by encouraging new business investment, commercial tenancy and job creation in this high vacancy commercial facility to enhance the community; and WHEREAS, in furtherance of its effort to eliminate economic and physical blight in the project area, the Agency expended over $3.3 Million to assemble acreage previously owned by multiple owners ("the assembled acreage") and entered into other agreements with property owners in the Redwood Business Park in order to facilitate the development of the Redwood Business Park and the elimination of economic and physical blight; and WHEREAS, under the ENA, the Agency is obligated to enter a disposition and development agreement with Costco under specified terms, if Costco obtains the necessary entitlements to construct and open its store on the assembled acreage; and WHEREAS, the Agency has expended in excess of $700,000 to obtain a 3-year option, expiring on August 3, 2012, to purchase additional acreage in the Redwood Business Park for commercial development; and WHEREAS, the redevelopment of the Redwood Business Park requires certain critical infrastructure projects to improve traffic circulation, drainage and utility service (the "Public Improvements"); and WHEREAS, Section 33678 of the Community Redevelopment Law provides that the portion of taxes allocated to the Agency pursuant to Section 33670(b) of the Community Redevelopment Law (Tax Increments) will not be deemed the receipt or appropriation of proceeds for the purposes of Article XIII.B. of the California Constitution so long as such Tax Increments are used for redevelopment activity which primarily benefits the redevelopment project area; and 82661.00001\5861399.1 WHEREAS, the Agency desires to cooperate with the City in its efforts to improve transit service and provide funding in an amount not to exceed SIX MILLION DOLLARS ($6,000,000) ("Agency Contribution") to enable the City to design and build the Public Improvements to benefit the Redevelopment Project Area; and WHEREAS, the City shall be responsible for conducting environmental review prior to its approval of the Public Improvements, final design and construction and as a prerequisite for use of any of the Agency Contribution for final design and construction; and WHEREAS, the Agency and City have cooperated in the preparation of a Funding Agreement ("Funding Agreement") to provide for payment of the Agency Contribution to the City to pay for the costs for the City to design, obtain all approvals for and build the Public Improvements to benefit the Redevelopment Project Area (Project). NOW, THEREFORE, BE IT RESOLVED by the Redevelopment Agency of the City of Ukiah as follows: Section 1. The Agency hereby finds and determines that the Project, and payment of the Agency Contribution to assist with financing the Public Improvements as provided for under the Funding Agreement, are of primary benefit to the Redevelopment Project Area by helping to eliminate blight within the Redevelopment Project Area; that no other reasonable means of financing the costs of the Public Improvements are available to the City; and that the payment of the Agency Contribution to construct the Public Improvements is consistent with the Implementation Plan adopted by the Agency pursuant to Section 33490 of the Community Redevelopment Law. These findings and determinations are based on the following facts: a) The major goals and objectives of the Redevelopment Plan include, among others, the elimination of blighting influences and the correction of environmental deficiencies in the Redevelopment Project Area, including, among others, inadequate or deteriorated public improvements, facilities and utilities; the strengthening of retail and other commercial functions in the Redevelopment Project Area; the strengthening of the economic base of the Redevelopment Project Area and the community by the installation of needed site improvements to stimulate new residential commercial and light industrial expansion, employment and social and economic growth; and the replanning, redesign and development of portions of the Redevelopment Project Area which are stagnant or improperly utilized. The Redevelopment Plan provides the Agency with powers, duties and obligations for the redevelopment, rehabilitation and revitalization of the area within the Redevelopment Project Area. (b) Given the ongoing downturn in the economy, the decreases in funding available to cities and other local jurisdictions for general funding purposes, including the current budget crisis of the City, State and federal governments, and the lack and reduction of other governmental grants and assistance programs to help with the costs of these projects and services, the City does not have the necessary funds in the General Fund or any other sources available to it to fund the costs necessary to construct the Public Improvements that are required within the Redevelopment Project Area to provide this key component to the Redwood Business Park. (c) In order to ensure that the Agency Contribution does not exceed the costs of the Project provided to benefit the Redevelopment Project Area, the Funding Agreement requires the 82661.00001\5861399.1 2 City to provide evidence to the Agency of the costs incurred by the City for the construction of the Public Improvements to benefit the Redevelopment Project Area. (d) As set forth in Section 33031 of the Community Redevelopment Law, conditions that cause blight include, among others, substandard, defective or obsolete design or construction; faulty or inadequate utilities, or other similar factors; depreciated or stagnant property values; abnormally high business vacancies, low lease rates and abandoned buildings; and a high crime rate that constitutes a serious threat to the public safety and welfare. The Project is consistent with the types of projects and programs identified in the Redevelopment Plan and the Implementation Plan that will stimulate and encourage further redevelopment and private investment in the Redevelopment Project Area. Section 2. Pursuant to Section 33678 of the Community Redevelopment Law, the Agency further determines that the Project to be provided will benefit the Redevelopment Project Area and the Agency Contribution toward the costs of the Public Improvements are redevelopment activities as prescribed in Sections 33020 and 33021 of the Community Redevelopment Law, that the provision of the Project provided for under the Funding Agreement will primarily benefit the Redevelopment Project Area, and that none of the funds used to pay for the Project will be used for employee or contractual services of any local government agency except those directly relating to the provision of the Project to benefit the Redevelopment Project Area. Section 3. The Agency hereby approves the Funding Agreement, including without limitation the Agency Contribution provided for under the Funding Agreement, in substantially the form currently on file with the Agency Secretary. The Executive Director is authorized and directed to execute the Funding Agreement on behalf of the Agency, subject to any minor, clarifying or technical modifications approved by Agency Counsel. The Executive Director is further authorized and directed to take all actions and execute such documents as may be necessary to carry out the obligations of the Agency under the Funding Agreement, including payment of the Agency Contribution pursuant to the terms of the Funding Agreement. DULY AND REGULARLY ADOPTED by the Redevelopment Agency of the City of Ukiah this 2d day of March, 2011. AYES: NOES: ABSENT: ABSTAIN: APPROVED: Mari Rodin, Chairman ATTEST: Linda Brown, Secretary 82661.00001\5861399.1 Attachment #3 RESOLUTION NO. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF UKIAH APPROVING A FUNDING AGREEMENT WITH THE REDEVELOPMENT AGENCY OF THE CITY OF UKIAH AND MAKING CERTAIN FINDINGS THAT THE PUBLIC IMPROVEMENTS BENEFIT THE UKIAH REDEVELOPMENT PROJECT AREA WHEREAS, pursuant to the Community Redevelopment Law of the State of California (Health and Safety Code Section 33000 et seq.), the Redevelopment Agency of the City of Ukiah ("Agency") is carrying out the Redevelopment Plan for the Ukiah Redevelopment Project Area ("Redevelopment Project Area"); and WHEREAS, in furtherance of the Redevelopment Plan, the Agency adopted a Five-Year Implementation Plan, as required by Health and Safety Code Section 33490, covering the period 2007-2012 ("Implementation Plan); and WHEREAS, the Agency has been involved in the preparation of and approved an Exclusive Negotiating Agreement ("BNA") with Costco Wholesale Corporation at the Redwood Business Park in an effort to assist in the elimination of economic and physical blight through focused and intense efforts by encouraging new business investment, commercial tenancy and job creation in this high vacancy commercial facility to enhance the community; and WHEREAS, in furtherance of its effort to eliminate economic and physical blight in the project area, the Agency expended over $3.3 Million to assemble acreage previously owned by multiple owners ("the assembled acreage") and entered into other agreements with property owners in the Redwood Business Park in order to facilitate the development of the Redwood Business Park and the elimination of economic and physical blight; and WHEREAS, under the ENA, the Agency is obligated to enter a disposition and development agreement with Costco under specified terms, if Costco obtains the necessary entitlements to construct and open its store on the assembled acreage; and WHEREAS, the Agency has expended in excess of $700,000 to obtain a 3-year option, expiring on August 3, 2012, to purchase additional acreage in the Redwood Business Park for commercial development; and WHEREAS, the redevelopment of the Redwood Business Park requires certain critical infrastructure projects to improve traffic circulation, drainage and utility service (the "Public Improvements"); and WHEREAS, Section 33678 of the Community Redevelopment Law provides that the portion of taxes allocated to the Agency pursuant to Section 33670(b) of the Community Redevelopment Law (Tax Increments) will not be deemed the receipt or appropriation of proceeds for the purposes of Article XIII.B. of the California Constitution so long as such Tax Increments are used for redevelopment activity which primarily benefits the redevelopment project area; and WHEREAS, the City desires to cooperate with the Agency in its efforts to stimulate private investment by improving traffic circulation, drainage and utility improvements in the Redwood Business Park and provide funding in an amount not to exceed SIX MILLIION DOLLARS ($6,000,000) ("Agency Contribution") to enable the City to design and build the Public Improvements to benefit the Redevelopment Project Area; and WHEREAS, the City shall be responsible for conducting environmental review prior to its approval of the Public Improvements, final design and construction and as a prerequisite for use of any of the Agency Contribution for final design and construction; and WHEREAS, the Agency and City have cooperated in the preparation of a Funding Agreement ("Funding Agreement") to provide for payment of the Agency Contribution to the City to pay for the costs for the City to design, obtain all approvals for and build the Public Improvements to benefit the Redevelopment Project Area (Project). NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Ukiah as follows: Section 1. The City Council hereby finds and determines that the Project, and payment of the Agency Contribution to assist with financing the Public Improvements as provided for under the Funding Agreement, are of primary benefit to the Redevelopment Project Area by helping to eliminate blight within the Redevelopment Project Area; that no other reasonable means of financing the costs of the Public Improvements are available to the City; and that the payment of the Agency Contribution to construct the Public Improvements is consistent with the Implementation Plan adopted by the Agency pursuant to Section 33490 of the Community Redevelopment Law. These findings and determinations are based on the following facts: a) The major goals and objectives of the Redevelopment Plan include, among others, the elimination of blighting influences and the correction of environmental deficiencies in the Redevelopment Project Area, including, among others, inadequate or deteriorated public improvements, facilities and utilities; the strengthening of retail and other commercial functions in the Redevelopment Project Area; the strengthening of the economic base of the Redevelopment Project Area and the community by the installation of needed site improvements to stimulate new residential commercial and light industrial expansion, employment and social and economic growth; and the replanning, redesign and development of portions of the Redevelopment Project Area which are stagnant or improperly utilized. The Redevelopment Plan provides the Agency with powers, duties and obligations for the redevelopment, rehabilitation and revitalization of the area within the Redevelopment Project Area. (b) Given the ongoing downturn in the economy, the decreases in funding available to cities and other local jurisdictions for general funding purposes, including the current budget crisis of the City, State and federal governments, and the lack and reduction of other governmental grants and assistance programs to help with the costs of these projects and services, the City does not have the necessary funds in the General Fund or any other sources available to it to fund the costs necessary to construct the Public Improvements that are required within the Redevelopment Project Area to provide this key component to the Redwood Business Park. 82661.00001 \5 861861.1 (c) In order to ensure that the Agency Contribution does not exceed the costs of the Project provided to benefit the Redevelopment Project Area, the Funding Agreement requires the City to provide evidence to the Agency of the costs incurred by the City for the construction of the Public Improvements to benefit the Redevelopment Project Area. (d) As set forth in Section 33031 of the Community Redevelopment Law, conditions that cause blight include, among others, substandard, defective or obsolete design or construction; faulty or inadequate utilities, or other similar factors; depreciated or stagnant property values; abnormally high business vacancies, low lease rates and abandoned buildings; and a high crime rate that constitutes a serious threat to the public safety and welfare. The Project is consistent with the types of projects and programs identified in the Redevelopment Plan and the Implementation Plan that will stimulate and encourage further redevelopment and private investment in the Redevelopment Project Area. Section 2. Pursuant to Section 33678 of the Community Redevelopment Law, the City Council further determines that the Project to be provided will benefit the Redevelopment Project Area and the Agency Contribution toward the costs of the Public Improvements are redevelopment activities as prescribed in Sections 33020 and 33021 of the Community Redevelopment Law, that the provision of the Project provided for under the Funding Agreement will primarily benefit the Redevelopment Project Area, and that none of the funds used to pay for the Project will be used for employee or contractual services of any local government agency except those directly relating to the provision of the Project to benefit the Redevelopment Project Area. Section 3. The City Council hereby approves the Funding Agreement, including without limitation the Agency Contribution provided for under the Funding Agreement, in substantially the form currently on file with the Agency Secretary. The City Manager is authorized and directed to execute the Funding Agreement on behalf of the City, subject to any minor, clarifying or technical modifications approved by City Attorney. The City Manager is further authorized and directed to take all actions and execute such documents as may be necessary to carry out the obligations of the City under the Funding Agreement. DULY AND REGULARLY ADOPTED by the City Council of the City of Ukiah this 2d day of March, 2011. AYES: NOES: ABSENT: ABSTAIN: 82661.00001\5861861.1 APPROVED: Mari Rodin, Mayor ATTEST: Linda Brown, City Clerk 82661.00001\5861861.1 ATTACHMENT RESOLUTION NO. 96-52 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF UKIAH APPROVING LOAN AGREEMENT BETWEEN THE UKIAH REDEVELOPMENT AGENCY AND THE CITY OF UKIAH WHEREAS, the Ukiah Redevelopment Agency (Agency) was established by the Ukiah City Council (City) In 1974, and adopted a Redevelopment Plan in 1989; and WHEREAS, the Ukiah Redevelopment Agency performs duties and carries out plans and programs beneficial to the City and Its environs; and WHEREAS, the City acknowledges the positive benefits of the Agency and desires that It remain a viable entity, and WHEREAS, the Agency, like all Redevelopment Agencies, must operate in a debt situation, precluding unencumbered fund balances; and WHEREAS, both the Agency and the City wish to formalize the loan procedures between the two parties. NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of Ukiah that the Loan Agreement between the City of Ukiah and the Ukiah Redevelopment Agency, attached hereto as Exhibit 'A,' is approved, and the Mayor Is authorized to execute same. PASSED AND ADOPTED this 3rd day of April, 1996, by the following roll call vote: AYES: Councilmembers Mostin, Malone, Shoemaker, and Chairman Schnelter NOES: Councllmember Wattenburger ABSENT: None ABSTAIN: None AE , Cat y cKay, C Clerk 4/Res: Loan Fred Schnelter, Mayor LOAN AGREEMENT BETWEEN THE UKIAH REDEVELOPMENT AGENCY AND THE CITY OF UKIAH This Agreement is made and entered in Ukiah, California, on 1996, by and between the City of Ukiah ("City") and the Ukiah edevelopment Agency ("Agency"), effective as of January 1, 1987. RECITALS: 1. City first formed the Agency in 1974. 2. In 1983 the City began to consider adopting a Redevelop-ment Plan. 3. Beginning in 1987 the Agency retained professional consultants to advise and assist it in the development of a redevelopment plan and associated documents, including environmental documents. These consultants included the law firm of McDonough, Holland and Allen, the planning firms of Wurster, Bernardi & Emmons, Inc., and John B. Dykstra & Associates as well as financial consultants. 4. In addition, the Agency incurred additional legal and administrative expenses in the course of developing and implementing its redevelopment plan. 5. The City has advanced funds to the Agency for all of these purposes periodically since February, 1983. 6. Not later than October 1 of each year, the Agency has filed annual statements of indebtedness with the County Auditor pursuant to the Health & Safety Code §33675. 7. Periodically, the City will be required to advance funds to the Agency in the future for administrative and other expenses of the Agency. 8. All of these advances to the Agency were made as loans which the Agency is required to repay pursuant to resolutions of the City and the Agency. 9. The purpose of this Agreement is to memorialize the terms under which the City has and will loan funds to the Agency for costs of developing, implementing, revising and administering the redevelopment plan. AGREEMENT : In consideration of the above-recited facts and on the terms and conditions as further stated herein, the parties hereby agree as follows: 1. REPAYMENT OF PAST LOANS. To and including June 30, 1996, the City has or will have loaned the Agency for the development, implementation and administration of the Ukiah Redevelopment Plan, amounts as set forth in the attached Exhibit A which is incorporated herein by reference. The total amount of said loan equals $1,577,205.52 ("Loan Amount"). The Loan Amount is comprised of the following: TABLE I Date of Advance Amount Interest Rate Designation 2/2/83 - 1/3/87 Fy 91/92 - 3/29/96 3/5/96 - 6/30/96 $ 152,110.001 100 $1,379,331.522 Adjust.3 $ 45,764.004 Adjust. "Audited Loan" "Budget Deficit Loan" "Projected Deficit Loan" Agency agrees to repay the Loan Amount as further provided in this paragraph. 1.1 Upon demand of the City, Agency shall repay all or part of the outstanding balance of the Loan Amount; provided, however, that the Agency shall only be obligated to repay the Loan Amount from unencumbered tax increment revenues actually available to the Agency and not required by the Agency to satisfy legally binding financial commitments arising prior to a demand for repayment by the City. 1.2 From the date of advance through June 30, 1996, the Agency shall pay annual interest on the Audited Loan, Budget Deficit Loan and Projected Deficit Loan at the interest rates stated in Table I, compounded annually. The Loan Amount already includes accrued interest at these rates to the dates stated in footnotes 1-2 and 4 of paragraph 1. After June 30, 1996, the 1 Includes interest through 6/30/96 2 Includes accrued interest through March 5, 1996 3 Adjustable rate equal to the average interest rate earned by City on all its invested funds. 4 Includes accrued interest through June 30, 1996 s:\u\agrmts96\rda.1n March 29, 1996 2 Agency shall pay annual interest on the entire unpaid balance of the Loan Amount, including accrued but unpaid interest at the rate of 6%, compounded annually. 1.3 The Agency shall continue to make payments on demand as provided in this paragraph until the total outstanding balance of the Loan Amount and accrued interest is paid in full. 2. REPAYMENT OF FUTURE BUDGETED LOANS. On and after June 30, 1996, the Agency may request the City to budget additional amounts to loan the Agency pursuant to the terms of this paragraph. 2.1 On or before May 15 of each year, the Agency may submit a request to the City to budget an amount of funds to loan the Agency for costs of revising, implementing and administering the redevelopment plan or performing a public function of the community. These purposes can include costs of City supplied personnel, equipment, overhead and supplies, costs associated with the officers and employees of the Agency, costs of outside contractors and consultants, and costs associated with the purchase of real or personal property. All amounts budgeted shall be a loan from the City to the Agency ("Budgeted Loan") which the Agency shall repay pursuant to the terms of this paragraph. 2.2 In addition to Budgeted Loans requested pursuant to paragraph 2.1, the Agency make request the City to budget additional amounts at any time for the purposes stated in paragraph 2.1. Any additional amounts so budgeted by the City shall also be considered Budgeted Loans subject to the terms of this paragraph 2. 2.3 Upon demand of the City, Agency shall repay all or part of the outstanding balance of the Budgeted Loan; provided, however, that the Agency shall only be obligated to repay the Budgeted Loan from unencumbered tax increment revenues actually available to the Agency and not required by the Agency to satisfy legally binding financial commitments arising prior to a demand for repayment by the City. 2.9 From the date of each advance of a Budgeted Loan to the Agency, the Agency shall pay annual interest on the entire unpaid balance of the Budgeted Loan, including accrued but unpaid interest, at the rate of 6%, compounded annually. 2.5 The Agency shall continue to make payments on demand as provided in this paragraph until the total outstanding balance of the Budgeted Loan and accrued interest are paid in full. 3. FINANCIAL REPORTS REQUIRED. As long as a Loan Amount, Budgeted Loan or accrued interest remain unpaid, Agency shall file annual financial statements with the City of all revenues and expenditures. s:\u\ag=ts96\rda.ln March 29, 1996 3 4. AGENCY ADMINISTRATIVE FUND. All money loaned to Agency under this Agreement shall be kept by the treasury of the City in a special fund to be known as the "Ukiah Community Redevelopment Agency Administrative Fund" and money shall be drawn from the fund to meet the administrative and other approved expenses of the Agency in substantially the same manner as money is drawn by other departments and agencies of the City subject to budgetary control. 5. SUBORDINATION. The Agency's pledge of tax increment revenues and its obligation to repay the Loan Amount, a Budgeted Loan or accrued interest under the terms of this Agreement is subordinate to its pledge of tax increments for tax allocation bonds or other long-term indebtedness the Agency incurs to carry out a project. 6. SEVERABILITY. If any provision of the Agreement is held by a court of competent jurisdiction to be invalid, void, or unenforceable, the remaining provisions shall nevertheless continue in full force and effect without being impaired or invalidated in any way. 7. INTEGRATION. This Agreement contains the entire agreement among the parties and supersedes all prior and contemporaneous oral and written agreements, understandings, and representations among the parties. No amendments to this Agreement shall be binding unless executed in writing by all of the parties. 8. WAIVER. No waiver, of any of the provisions of this Agreement shall be deemed, or shall constitute a waiver of any other provision, nor shall any waiver constitute a continuing waiver. No waiver shall be binding unless executed in writing by the party making the waiver. 9. NOTICES. Whenever notice, payment or other communication is required or permitted under this Agreement it shall be deemed to have been given when personally delivered or when deposited in the United Sates mail with proper first class postage affixed thereto and addressed as follows: AGENCY Executive Director Ukiah Civic Center 300 Seminary Ave. Ukiah, CA. 95482 CITY City Manager Ukiah Civic Center 300 Seminary Ave. Ukiah, CA. 95482 10. PARAGRAPH READINGS. . The paragraph headings contained herein are for convenience and reference only and are not intended to define or limit the scope of this agreement. s:\u\agrmts96\rda.1n March 29, 1996 4 11. DUPLICATE ORIGINALS. This Agreement may be executed in one or more duplicate originals bearing the original signature of both parties and when so executed any such duplicate original shall be admissible as proof of the existence and terms of the Agreement between the parties. WHEREFORE, the parties have entered this Agreement on the date first written above. CITY OF UKIAH By: iKI-J-111(Adr-1 Fred Schneiter, Mayor ATTEST: Cathy McK4y,-City[Cler UKIAH REDEVELOPMENT AGENCY 44 B 3Y: Fred Sc neiter, Chairman ATTEST: Karen Yoast, St cretary s:\u\agrmts96\rda.1n March 29, 1996 5 EXHIBIT A KUA 6OKKOWING Accumulated Balance Principal Interest to 6/30/95 Due 2/2/83 10,000.00 12,333.00 22,333.00 5/15/85 15,000.00 15,193.00 30,193.00 1/3/87 50,000.00 42,084.00 92,084.00 Audited balance 6/30/95 75,000.00 69,610.00 144,610.00 Interest 7/1/95 - 3/31/96 5,625.00 150,235.00 Interest 4/1/96 - 6/30/96 1,875.00 152,110.00 Interest 7/1/96-6/30/97 7,500.00 159,610.00 CASH FLOW DEFICIT DEBT SUMMARY Operating Cap. Project Original Combined Fund 960 Fund 965 Loans * Total Prior to FY 91/92 (34,060.73) (114,610.00) (148,670.73) FY 1991/92 (176,211.84) (7,500.00) (183,711.84) FY 1992/93 (21,696.99) (7,500.00) (29,196.99) FY 1993/94 (167,514.30) (7,500.00) (175,014.30) FY 1994/95 (585,542.46) (7,500.00) (593,042.46) FY 1995/96 YTD (204,178.29) (190,126.91) (5,625.00) (399,930.20) FY 1996 Projected to Apr - Jun 140,800.00 186,564.00 1,875.00 47,639.00 TOTAL at June 30, 1996 1,048,404.61 (376,690.91 152,110.00 1,577,205.52) FY 1996/97 Projected (20,595.39) 70,309.09 9,126.60) 100,031.08 TOTAL 2,117,404.61 823,690.91 313,346.60) 1,677,236.60 Total debt, pre-existing loan (Principal & accrued interest), as of June 30, 1996 (152,110.00) Total debt (Budget Deficit) incurred to March 29, 1996 (1,379,331.52) Projected debt to be incurred to June 30, 1996 (45,764.00) TOTAL (1,577,205.52) Projected debt to be incurred in FY 1996/97 (100,031.08) TOTAL (1,677,236.60) * Includes accrued interest Includes $77,110 of accrued interest. DEBTSUM.XLS 3/29/96 Page 1 April 3, 1996 Agenda AGREEMENT OF PURCHASE AND SALE Attachment #5 This Agreement of Purchase and Sale ("Agreement"), dated as of March 2, 2011, is made and entered into by and between the Redevelopment Agency of the City of Ukiah, a public body, corporate and politic ("Seller"), and the City of Ukiah, a municipal corporation of the State of California ("Buyer"). The Seller and Buyer agree as follows: RECITALS A. Seller is the owner of certain real property known as Mendocino County Assessor's Parcel Numbers and addresses as set forth in the spreadsheet attached hereto ("the Property"). The Property is located within the Ukiah Redevelopment Project Area. B. Buyer desires to purchase the Property from Seller, and Seller desires to sell the Site to Buyer, upon the terms, conditions, and provisions set forth in this Agreement. AGREEMENT NOW, THEREFORE, in consideration of the foregoing recitals and the mutual covenants contained herein, the parties agree as follows: 1. Purchase and Sale. Seller agrees to sell and convey to Buyer, and Buyer agrees to purchase from Seller, the Property, on the terms and subject to the conditions set forth in this Agreement. 2. Purchase Price. The purchase price ("Purchase Price") for the Property shall be the amount of One Dollar ($1) and other good and valuable consideration, the sufficiency of which is hereby acknowledged. 3. Payment of Purchase Price. On the Closing Date (defined below), the Purchase Price shall be payable by Buyer to Seller in the form of cash or check, made payable to the Seller, in the amount of the Purchase Price. 4. Closing. For the purpose of this Agreement, the "Closing Date" shall occur on the date that the Grant Deed (defined below) is recorded in the Official Records of Mendocino County. The Closing Date shall occur on a date mutually agreed upon by Seller and Buyer. 5. Grant Deed; Title. Transfer of the Property from Seller to Buyer shall be evidenced by a grant deed or quitclaim deed ("Grant Deed") as mutually determined by and in a form reasonably acceptable to Seller and Buyer. Prior to the Closing Date, Seller shall deliver to Buyer the Grant Deed duly executed and acknowledged in recordable form by Seller, and Buyer shall record the Grant Deed in the Official Records of Mendocino County within five (5) business days following receipt of same. S:\Administration\Agendas & ASRs\Mar 2 Regular Agenda\URA and City ASR for 3-1-11\Attachment 5 purchase and sale final.doc 1 6. Costs. Buyer shall be solely responsible for all costs associated with the conveyance of the Property, including any and all transfer taxes and recording fees in connection with the conveyance of the Property. 7. As-Is Conveyance. Buyer has made such independent examinations and inquiries as Buyer deems necessary and desirable with respect to the Property and the transaction contemplated by this Agreement. Buyer is purchasing the Property on an "AS-IS WITH ALL BASIS," and is relying upon Buyer's own independent investigations, examinations, and inquiries, and the materials and information prepared by Buyer or by third parties at Buyer's request in determining that the Property and each portion thereof is suitable and adequate in all respects for any and all activities and uses which Buyer may elect to conduct thereon. Seller is not making, has not made, and expressly disclaims, any representation, warranty, or other assurance whatsoever with respect to the Property or any condition or feature thereof. 8. Miscellaneous. (a) Notices. Any notices, requests, demands, or other communications required or permitted to be given under this Agreement shall be in writing and shall be deemed to have been duly given on the date of service if served personally (FedEx and similar services shall be considered to be personal service), and upon the second business day after mailing, if mailed to the party to whom notice is to be given, by first class mail, registered or certified, postage prepaid, return receipt requested, and properly addressed as follows: To Seller: Redevelopment Agency of the City of Ukiah 300 Seminary Avenue Ukiah, CA 95482 Attention: Executive Director To Buyer: City of Ukiah 300 Seminary Avenue Ukiah, CA 95482 Attention: City Manager (b) Integration. This Agreement contains the entire agreement of the parties hereto; and this Agreement supersedes any and all prior written and oral agreements between them concerning the subject matter contained herein. There are no representations, agreements, arrangements or understandings, oral or written, relating to the subject matter which are not fully expressed herein. (c) Amendment. No change, alteration, amendment, modification, or waiver of any of the terms or provisions hereof shall be valid unless the same shall be in writing and signed by the parties hereto. (d) Additional Documents. From time to time prior to and after the Closing Date, each party shall execute and deliver such instruments of transfer and other documents as SAAdministration\Agendas & ASRs\Mar 2 Regular Agenda\URA and City ASR for 3-1-11\Attachment 5 purchase and sale final.doc2 may be reasonably requested by the other party to carry out the purpose and intent of this Agreement. (e) Possession; Risk of Loss. Risk of loss shall remain with Seller until Closing. Possession of the Site and the risk of loss shall pass to Buyer at closing. (f) Counterparts. This Agreement may be executed in one or more counterparts, each of which shall be deemed an original, but all of which together shall constitute but one and the same instrument. (g) No Brokers. Seller and Buyer hereby acknowledge that neither party has been represented by any real estate broker, agent, or finder in connection with this transaction. Accordingly, each party hereby agrees to indemnify, defend, and hold the other harmless from and against any claims (including all costs, expenses, and attorney's fees related thereto) payable as to any real estate broker, agent, or finder which the indemnifying party may engage or is claimed to have engaged in connection with this transaction. (h) Assignment. Buyer may not assign this Agreement or any of its rights, liabilities, or obligations hereunder, without the prior written consent of Seller, which may be withheld in Seller's sole and absolute discretion. IN WITNESS WHEREOF, the parties have executed this Agreement as of the date set forth above. SELLER: By: APPROVED AS TO FORM: By: Agency Counsel ATTEST: By: Secretary REDEVELOPMENT AGENCY OF THE CITY OF UKIAH, a public body, corporate and politic Executive Director SAAdministration\Agendas & ASRs\Mar 2 Regular Agenda\URA and City ASR for 3-1-11\Attachment 5 purchase and sale final.doc3 BUYER: By: APPROVED AS TO FORM: By: City Attorney ATTEST: By: City Clerk CITY OF UKIAH, a municipal corporation of the State of California City Manager S:\Administration\Agendas & ASRs\Mar 2 Regular Agenda\URA and City ASR for 3-1-11\Attachment 5 purchase and sale final.doc4 Attachment #6 RESOLUTION NO. RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF UKIAH APPROVING THE CONVEYANCE OF AGENCY PROPERTY TO THE CITY AND MAKING CERTAIN FINDINGS THAT THE CONVEYANCE WILL BE USED FOR REDEVELOPMENT PURPOSES IN CONFORMITY WITH THE REDEVELOPMENT PLAN AND TO BENEFIT THE UKIAH REDEVELOPMENT PROJECT AREA WHEREAS, pursuant to the Community Redevelopment Law of the State of California (Health and Safety Code Section 33000 et seq.), the Redevelopment Agency of the City of Ukiah ("Agency") is carrying out the Redevelopment Plan for the Ukiah Redevelopment Project Area ("Redevelopment Project Area"); and WHEREAS, in furtherance of the Redevelopment Plan, the Agency adopted a Five-Year Implementation Plan, as required by Health and Safety Code Section 33490, covering the period 2007-2012 ("Implementation Plan); and WHEREAS, in furtherance of its effort to eliminate economic and physical blight in the project area, the Agency expended $4 Million to assemble acreage previously owned by multiple owners in order to facilitate the development of the Redwood Business Park; and WHEREAS, the Agency has been involved in the preparation of and approved an Exclusive Negotiating Agreement ("ENA") with Costco Wholesale Corporation at the Redwood Business Park in an effort to assist in the elimination of economic and physical blight through focused and intense efforts by encouraging new business investment, commercial tenancy and job creation in this high vacancy commercial facility to enhance the community; and WHEREAS, Section 33678 of the Community Redevelopment Law provides that the portion of taxes allocated to the Agency pursuant to Section 33670(b) of the Community Redevelopment Law (Tax Increments) will not be deemed the receipt or appropriation of proceeds for the purposes of Article XIII.B. of the California Constitution so long as such Tax Increments are used for redevelopment activity which primarily benefits the redevelopment project area; and WHEREAS, in order to facilitate the implementation of the redevelopment plan and the redevelopment of the project area, the Agency has determined to convey and the City has agreed to accept certain parcels of Agency real property listed by Mendocino County Assessor Parcel number and location on the attached spreadsheet which is incorporated herein by this reference ("the Transferred Property"); and WHEREAS, parcels 12-28 on the attached spreadsheet ("Redevelopment Parcels") were acquired for the purposes described above; and WHEREAS, parcels 3-4 and 7-11 (the "Housing Parcels") on the attached spreadsheet were acquired with Agency funds set aside for low and moderate income housing; and WHEREAS, parcel 5 ("Main Street Parking Lot") and parcel 6 ("Thomas Plaza") on the attached spreadsheet are public improvements which the City is responsible to operate and maintain; and WHEREAS, the City will use the Housing Parcels to provide low and moderate income housing; and WHEREAS, the City will operate and maintain the Main Street Parking Lot and the Thomas Plaza as public facilities and improvements with the same discretion as the City exercises in its ownership and use of other City property used for similar purposes; and WHEREAS, the City shall be responsible for conducting environmental review prior to its approval of the use or disposal of the Transferred Property, and in any future disposition of said property, the City shall strictly comply with the Community Redevelopment Law; and WHEREAS, the Agency and City have entered a Project Funding Agreement to provide certain public improvements that will benefit the Redevelopment Parcels. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Ukiah as follows: Section 1. The Ukiah Redevelopment Agency hereby finds and determines that the Project and the conveyance of the Transferred Property are of primary benefit to the Redevelopment Project Area by helping to eliminate blight within the Redevelopment Project Area and that the conveyance of the Transferred Property to the City is consistent with the Implementation Plan adopted by the Agency pursuant to Section 33490 of the Community Redevelopment Law. These findings and determinations are based on the following facts: a) The major goals and objectives of the Redevelopment Plan include, among others, the elimination of blighting influences and the correction of environmental deficiencies in the Redevelopment Project Area, including, among others, inadequate or deteriorated public improvements, facilities and utilities; the strengthening of retail and other commercial functions in the Redevelopment Project Area; the strengthening of the economic base of the Redevelopment Project Area and the community by the installation of needed site improvements to stimulate new residential commercial and light industrial expansion, employment and social and economic growth; and the replanning, redesign and development of portions of the Redevelopment Project Area which are stagnant or improperly utilized. The Redevelopment Plan provides the Agency with powers, duties and obligations for the redevelopment, rehabilitation and revitalization of the area within the Redevelopment Project Area. (b) As set forth in Section 33031 of the Community Redevelopment Law, conditions that cause blight include, among others, substandard, defective or obsolete design or construction; faulty or inadequate utilities, or other similar factors; depreciated or stagnant property values; abnormally high business vacancies, low lease rates and abandoned buildings; and a high crime rate that constitutes a serious threat to the public safety and welfare. Conveyance of the Transferred Property is consistent with the types of projects and programs identified in the Redevelopment Plan 2 82661.00001\5861861.1 and the Implementation Plan that will stimulate and encourage further redevelopment and private investment in the Redevelopment Project Area and increase the supply of low income housing. Section 2. Pursuant to Section 33678 of the Community Redevelopment Law, the Ukiah Redevelopment Agency further determines that conveyance of the Transferred Property to the City are redevelopment activities as prescribed in Sections 33020 and 33021 of the Community Redevelopment Law, and that said conveyance will primarily benefit the Redevelopment Project Area. Section 3. The Ukiah Redevelopment Agency hereby approves the conveyance of the Transferred Property to the City and directs and authorizes the Executive Director of the Agency to prepare, execute and deliver the necessary deeds or other conveyance documents to convey the Transferred Property to the City. The Executive Director is further authorized and directed to take all actions and execute such documents as may be necessary to carry out the conveyance of the Transferred Property to the City. DULY AND REGULARLY ADOPTED by the Redevelopment Atency of the City of Ukiah this 2d day of March 2011. AYES: NOES: ABSENT: ABSTAIN: APPROVED: Mari Rodin, Chairman ATTEST: Linda Brown, Agency Secretary 82661.00001\5861861.1 Attachment #7 RESOLUTION NO. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF UKIAH APPROVING AN AGREEMENT FOR THE CONVEYANCE OF AGENCY PROPERTY TO THE CITY OF UKIAH AND MAKING CERTAIN FINDINGS THAT THE CONVEYANCE WILL BE USED FOR REDEVELOPMENT PURPOSES IN CONFORMITY WITH THE REDEVELOPMENT PLAN AND THE BENEFIT THE UKIAH REDEVELOPMENT PROJECT AREA WHEREAS, pursuant to the Community Redevelopment Law of the State of California (Health and Safety Code Section 33000 et seq.), the Redevelopment Agency of the City of Ukiah ("Agency") is carrying out the Redevelopment Plan for the Ukiah Redevelopment Project Area ("Redevelopment Project Area"); and WHEREAS, in furtherance of the Redevelopment Plan, the Agency adopted a Five-Year Implementation Plan, as required by Health and Safety Code Section 33490, covering the period 2007-2012 ("Implementation Plan); and WHEREAS, in furtherance of its effort to eliminate economic and physical blight in the project area, the Agency expended $3.3 Million to assemble acreage previously owned by multiple owners and $700,000 to purchase an option on additional property in order to facilitate the development of the Redwood Business Park; and WHEREAS, the Agency has been involved in the preparation of and approved an Exclusive Negotiating Agreement ("ENA") with Costco Wholesale Corporation at the Redwood Business Park in an effort to assist in the elimination of economic and physical blight through focused and intense efforts by encouraging new business investment, commercial tenancy and job creation in this high vacancy commercial facility to enhance the community; and WHEREAS, Section 33678 of the Community Redevelopment Law provides that the portion of taxes allocated to the Agency pursuant to Section 33670(b) of the Community Redevelopment Law (Tax Increments) will not be deemed the receipt or appropriation of proceeds for the purposes of Article XIII.B. of the California Constitution so long as such Tax Increments are used for redevelopment activity which primarily benefits the redevelopment project area; and WHEREAS, in order to facilitate the implementation of the redevelopment plan and the redevelopment of the project area, the Agency has determined to convey and the City has agreed to accept certain parcels of Agency real property designated by Mendocino County Assessor Parcel Numbers and location on the attached spreadsheet which is incorporated herein by reference. ("the Transferred Property"); and WHEREAS, parcels 12-28 on the attached spreadsheet ("Redevelopment Parcels") were acquired for the purposes described above; and WHEREAS, parcels 3-4 and 7-11 (the "Housing Parcels") on the attached spreadsheet were acquired with Agency funds set aside for low and moderate income housing; and WHEREAS, parcel 5 ("Main Street Parking Lot") and parcel 6 ("Thomas Plaza") on the attached spreadsheet are public improvements which the City is responsible to operate and maintain; and WHEREAS, the City will use the Housing Parcels to provide low and moderate income housing; and WHEREAS, the City will operate and maintain the Main Street Parking Lot and the Thomas Plaza as public facilities and improvements with the same discretion as the City exercises in its ownership and use of other City property used for similar purposes; and WHEREAS, the City shall be responsible for conducting environmental review prior to its approval of the use or disposal of the Transferred Property, and in any future disposition of said property, the City shall strictly comply with the Community Redevelopment Law; and WHEREAS, the Agency and City have entered a Project Funding Agreement to provide certain public improvements that will benefit the Redevelopment Parcels. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Ukiah as follows: Section 1. The City Council hereby finds and determines that the Project and the conveyance of the Transferred Property are of primary benefit to the Redevelopment Project Area by helping to eliminate blight within the Redevelopment Project Area and that the conveyance of the Transferred Property to the City is consistent with the Implementation Plan adopted by the Agency pursuant to Section 33490 of the Community Redevelopment Law. These findings and determinations are based on the following facts: a) The major goals and objectives of the Redevelopment Plan include, among others, the elimination of blighting influences and the correction of environmental deficiencies in the Redevelopment Project Area, including, among others, inadequate or deteriorated public improvements, facilities and utilities; the strengthening of retail and other commercial functions in the Redevelopment Project Area; the strengthening of the economic base of the Redevelopment Project Area and the community by the installation of needed site improvements to stimulate new residential commercial and light industrial expansion, employment and social and economic growth; and the replanning, redesign and development of portions of the Redevelopment Project Area which are stagnant or improperly utilized. The Redevelopment Plan provides the Agency with powers, duties and obligations for the redevelopment, rehabilitation and revitalization of the area within the Redevelopment Project Area. (b) As set forth in Section 33031 of the Community Redevelopment Law, conditions that cause blight include, among others, substandard, defective or obsolete design or construction; faulty or inadequate utilities, or other similar factors; depreciated or stagnant property values; abnormally high business vacancies, low lease rates and abandoned buildings; and a high crime rate that constitutes a serious threat to the public safety and welfare. Conveyance of the Transferred Property is consistent with the types of projects and programs identified in the Redevelopment Plan 2 82661.00001 \5861861.1 and the Implementation Plan that will stimulate and encourage further redevelopment and private investment in the Redevelopment Project Area and increase the supply of low income housing. Section 2. Pursuant to Section 33678 of the Community Redevelopment Law, the City Council further determines that conveyance of the Transferred Property to the City are redevelopment activities as prescribed in Sections 33020 and 33021 of the Community Redevelopment Law, and that said conveyance will primarily benefit the Redevelopment Project Area. Section 3. The City Council hereby approves the Agreement for the Purchase and Sale of Real Property attached hereto and directs and authorizes the City Manager to execute the agreement and to accept the conveyance and arrange for the recordation of the conveyance deeds. The City Manager is further authorized and directed to take all actions and execute such documents as may be necessary to carry out the conveyance of the Transferred Property to the City. Section 4. The Transferred Property shall be used by the City to further the purposes of redevelopment of the Project Area. Any future disposition of the Transferred Property shall comply with the Community Redevelopment Law. Any funds produced from the disposition of the Transferred Property shall be used to benefit the Project Area and the purposes of redevelopment. cy Secretary. The City Manager is authorized and directed to execute the Funding Agreement on behalf of the City, subject to any minor, clarifying or technical modifications approved by City Attorney. DULY AND REGULARLY ADOPTED by the City Council of the City of Ukiah this 2d day of March 2011. AYES: NOES: ABSENT: ABSTAIN: APPROVED: ATTEST: Linda Brown, City Clerk Mari Rodin, Mayor 82661.00001 \5861861.1 Ukiah Redevelopment Agency Properties Transferred Property List APN Address Type 002-153-04 215 Norton Housing 002-153-30 345 North Main Street Housing 002-192-01 289 North Main Street RDA 002-265-09 300 South State Street RDA 002-281-15 Cleveland Lane Housing 002-281-18 Cleveland Lane Housing 002-281-24 517 South Main Street Housing 002-281-28 Cleveland Lane Housing 002-281-29 Cleveland Lane Housing 180-080-57 Airport Park Blvd. RDA 180-080-58 Airport Park Blvd. RDA 180-080-59 Airport Park Blvd. RDA 180-080-62 Airport Park Blvd. RDA 180-080-63 Airport Park Blvd. RDA 180-080-64 Airport Park Blvd. RDA 180-080-65 Airport Park Blvd. RDA 180-080-66 Airport Park Blvd. RDA 180-080-67 Airport Park Blvd. RDA 180-110-08 Airport Park Blvd. RDA 180-110-09 Airport Park Blvd. RDA 180-110-10 Airport Park Blvd. RDA 180-110-11 Airport Park Blvd. RDA 180-110-12 Airport Park Blvd. RDA 180-110-13 Airport Park Blvd. RDA 180-110-14 Airport Park Blvd. RDA 180-110-15 Airport Park Blvd. RDA Attachment #8 Project Student Joint Housing Project with CDC/College Student Joint Housing Project with CDC/College Parking Lot Alex R. Thomas Plaza Cleveland Lane Senior Housing Project; Purchase in Progress Cleveland Lane Senior Housing Project Cleveland Lane Senior Housing Project Cleveland Lane Senior Housing Project Cleveland Lane Senior Housing Project; Partial Purchase in Progress Proposed Costco Property Proposed Costco Property Proposed Costco Property Proposed Costco Property Proposed Costco Property Proposed Costco Property Proposed Costco Property Proposed Costco Property Proposed Costco Property Parcel 1; Partial Portion Proposed for Costco Parcel 1; vacant Parcel 1; Partial Portion Proposed for Costco Vacant; across street from Costco site next to Mendocino Brewery Vacant; South East of Mendocino Brewery; Partial Wetlands Vacant; South East of Mendocino Brewery; Partial Wetlands Vacant; Reserved for Southern Airport Park Blvd. road; near MBC Vacant; Reserved for Southern Airport Park Blvd. road; near MBC C. 'ty oJ' ?I aF~ ITEM NO.: Urgency Item 13g MEETING DATE: 3/2/2011 AGENDA SUMMARY REPORT SUBJECT: REQUEST BY UNITED STATES POSTAL SERVICE (USPS) FOR UKIAH CITY COUNCIL TO SCHEDULE DISCUSSION OF RELOCATION OF POSTAL SERVICES FOR GENERAL PUBLIC EXPRESSION OF OPINIONS AND CONSTRUCTIVE COMMENTS AND POSSIBLE ACTION BY CITY COUNCIL TO RESPOND TO USPS AND PROVIDE ADDITIONAL DIRECTION TO CITY STAFF Background: On February 23, 2011, City Council members and other community members attended a meeting to discuss the proposed closure of USPS facilities at 224 North Oak Street and transfer of all USPS services to 671 South Orchard. At that meeting, the Mayor of Ukiah, Mari Rodin, was given a letter by USPS that stated the intention to move the facilities, and requested that the Mayor assist with having the project scheduled for the next available town meeting so that the "general public may express its opinions and offer constructive comments on the project." Discussion: Citizens and representatives of other agencies in the area also attended the meeting, and have expressed concerns about the USPS's assessment of the 224 North Oak Street facilities. The Mayor is under the impression from USPS the meeting requested must be held within 60 days of receipt of the letter from USPS, according to the Community Regulations for U.S. Postal Service Facilities Projects. The Mayor and City Manager have discussed the setting of a meeting time and date, and propose that the meeting be held Thursday, April 21, at 6 p.m. at a location other than in the City Council Chambers, as that site is already booked, or at a time agreed to by Mayor and City Manager in connection with availability of the USPS representatives. Fiscal Impact: Budget Amendment Required Budgeted FY 10/11 F-1 New Appropriation ❑X Not Applicable I Amount Budgeted Source of Funds title and # Account Number Addit. Appropriation Re $ $ Continued on Paqe 2 Recommended Action(s): Discuss the Request made by USPS for a public meeting and provide city staff any additional direction necessary to accomplish holding of the meeting at a time and date acceptable to the. USPS. Alternative Council Option(s): Determine not to hold a public meeting as requested by USPS Citizens advised: Requested by: Mayor Mari Rodin Prepared by: Jane Chambers, City Manager Coordinated with: Attachments: Approved: ,J n'e Chambers, City Manager