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2011-08-03 Packet
CITY OF UKIAH CITY COUNCIL AGENDA Regular Meeting CIVIC CENTER COUNCIL CHAMBERS 300 Seminary Avenue Ukiah, CA 95482 August 3, 2011 6:00 p.m. 1. ROLL CALL 2. PLEDGE OF ALLEGIANCE 3. PROCLAMATIONS/INTRODUCTIONS/PRESENTATIONS 4. PETITIONS AND COMMUNICATIONS 5. APPROVAL OF MINUTES a. Special Meeting of 6/6-7/11 b. Regular Meeting of 7/14/11 C. Regular Meeting of 7/20/11 d. Regular Meeting of 9/15/10 6. RIGHT TO APPEAL DECISION Persons who are dissatisfied with a decision of the City Council may have the right to a review of that decision by a court. The City has adopted Section 1094.6 of the California Code of Civil Procedure, which generally limits to ninety days (90) the time within which the decision of the City Boards and Agencies may be judicially challenged. 7. CONSENT CALENDAR The following items listed are considered routine and will be enacted by a single motion and roll call vote by the City Council. Items may be removed from the Consent Calendar upon request of a Councilmember or a citizen in which event the item will be considered at the completion of all other items on the agenda. The motion by the City Council on the Consent Calendar will approve and make findings in accordance with Administrative Staff and/or Planning Commission recommendations. a. Approve City Council Response To Grand Jury Report Titled: "Masters Of Fixing Disasters" b. Award The Purchase Of FC300 Itron Handheld Meter Reading Devices To National Meter & Automation, Inc. In The Amount Of $15,742.28. C. Approve A Change Order To The Contract With JT&T Enterprises For The Repairs At The Observatory House To Include The Add-Alternate Item For Interior Paint. d. Award Purchase Of Biosolids Hauling Services For A Two Year Period To Total Waste Systems 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) a. Adoption Of Resolution Approving A Negative Declaration For The City of Ukiah Waste Water Treatment Plant Land Acquisition Project 12. UNFINISHED BUSINESS a. Approval Of The Acquisition Of The Property Adjacent To The Waste Water Treatment Plant At 3495 Taylor Drive; Authorize The City Manager To Negotiate And Execute Related Agreements Including Closing Documents And Agreement With The Ukiah Valley Sanitation District; And Approval Of Corresponding Budget Amendment Utilizing Funds From The 614 Joint City/UVSD Sewer Capital Projects Fund. b. Receive An Updated Report And Provide Direction Regarding Anton Stadium Construction Due To Extension Of Time To Complete Project. C. Authorization To Intervene In Appeal To U.S. Postal Regulatory Commission Of Decision To Close Downtown Post Office 13. NEW BUSINESS a. Adopt As An Urgency Ordinance An Ordinance Providing For The Reinstatement And Continuation Of The Powers Of The Ukiah Redevelopment Agency And Consider Any Other Related Issues To The State's Efforts To Take Local Tax Revenue Used To Fund Job Retention/Creation, Economic Development, Public Infrastructure And Low/Moderate Housing. b. (1) Adoption Of Resolution Authorizing The City Of Ukiah To Submit An Application To The California State Department Of Housing And Community Development For Funding Under The Home Investment Partnerships Program And, If Selected, Authorize The City Manager To Execute A Standard Agreement, Any Amendments Thereto, And Any Related Documents Necessary To Participate In The Home Investment Partnerships Program; (2) Approve Corresponding Budget Revenue And Expense Amendments, If Awarded; And (3) Approve The Revised First-Time Homebuyers Program Guidelines For The City Of Ukiah First-Time Homebuyers Program. C. Award Contract For Rehabilitation Of Tertiary Treatment Units At The Ukiah Wastewater Treatment Plant Specification No. 10-18 To ERS Industrial Services, Inc., Fremont, CA In The Amount Of $330,540.60 With An Authorization Of $33,054 For Potential Change Orders And Approve Budget Amendment 14. CLOSED SESSION - Closed Session may be held at any time during the meeting a. Conference with Labor Negotiator 54957.6) Agency Representative: Jane Chambers, City Manager Employee Organizations: Police, Electric b. Conference with Legal Counsel -Existinq Litigation (Subdivision (a) of Gov't Code Section 54956.9) Name of case: (Ukiah Valley Sanitation District v. City of Ukiah, dispute resolution under Participation Agreement) 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 28th day of July, 2011. JoAnne Currie, City Clerk Item 5a CITY OF UKIAH CITY COUNCIL Special Meeting CIVIC CENTER COUNCIL CHAMBERS 300 Seminary Avenue Ukiah, CA 95482 June 6-7, 2011 3:30 p.m. 1. ROLL CALL - June 6, 2011 Ukiah City Council met at a Special Meeting on June 6, 2011, the notice for which being legally noticed on June 3, 2011. Mayor Rodin called the meeting to order at 3:34 pm. Roll was taken with the following Councilmembers present: Landis, Thomas (arriving 3:37 pm), Crane (arriving 3:39 pm), Baldwin, and Mayor Rodin. Councilmembers absent: None. Staff Present: City Manager Chambers, Assistant City Manager Sangiacomo, City Attorney Rapport, City Clerk Currie, Director of Finance Elton, Human Resources Director Harris, Community Services Administrator Marsolan, Director of Public Safety Dewey, Airport Manager Owen, Director of Electric Utility Grandi, Director of Public Works and City Engineer Eriksen, and Community Development Stump. 2. CLOSED SESSION (3:30 PM - June 61 a. Conference with Labor Negotiator 54957.6) Agency Representative: Jane Chambers, City Manager Employee Organizations: Police, Fire, Electric, Miscellaneous, Management, and Department Head Units See Item 3a for reportable action. 3. NEW BUSINESS a. Adoption of Resolution Approving Memoranda Of Understanding for Employee Bargaining Units, Management and Department Head Units Mayor Rodin announced the 4-to-1 vote to adopt the resolution approving Memoranda of Understanding for employee bargaining units, Management and Department Head. Councilmember Crane was the dissenting vote. Mayor Rodin summarized the agreement a 10% salary reduction and a reduction in hours implemented as follows: 36-hour week consisting of 4 days per week, 9 hours per day, Monday through Thursday, with every Friday off. If a department head determines that for operational needs a work schedule of Monday through Friday or other than 4, 9-hour days is appropriate, the department head will work with that work group to determine an operationally effective schedule. Non Public Safety side of the Civic Center and Annex will be closed on Fridays. There is no reduction in benefits. 4. BUDGET WORKSHOP SESSION a. City of Ukiah Accomplishments City Manager Chambers presented the item. Finance Director Elton was available for questions. Each department listed the department's accomplishments for the year. Page 1 of 3 6/6/2011 Councilmember Baldwin requested agendizing programming and uses of Observatory Park within two to three months. b. Review of City's Financial Statement City Manager Chambers reviewed the Financial Statement from last financial year explaining for the total business where the City stands organizationally. Finance Director Elton was available for questions. Recessed 5:40 pm; Reconvened 6 pm c. Review of Draft City/RDA Budget Document for FY 2011/12 City Manager Chambers provided an overall view of the budget. Director of Public Safety Dewey presented the Public Safety budget. Chief Dewey will add out-of-area service calls to the analysis of fees. By Consensus City Council supports separating the Fire and Ambulance Budgets. Community Services Administrator Marsolan and Assistant City Manager Sangiacomo presented the Community Services Budget. Airport Manager Owen presented the Airport budget. Finance staff will look into why a reduction in group insurance 151 exists. Councilmember Baldwin requested an explanation of the stipends listed under disbursements. 5. PUBLIC COMMENT 6. ADJOURNMENT Adjourned at 8 pm to 3:30 pm on June 7, 2011. 1. ROLL CALL - June 7, 2011 Ukiah City Council met at a Special Adjourned Meeting on June 7, 2011, the notice for which being legally noticed on June 3, 2011. Mayor Rodin called the meeting to order at 3:37 pm. Roll was taken with the following Councilmembers present: Landis, Thomas, Crane, Baldwin, and Mayor Rodin. Councilmembers absent: None. Staff Present: City Manager Chambers, Assistant City Manager Sangiacomo, City Attorney Rapport, City Clerk Currie, Director of Finance Elton, Director of Electric Utility Grandi, Director of Public Works and City Engineer Eriksen, and Community Development Stump. 2. BUDGET WORKSHOP SESSION a. Continued Review of Draft City/RDA Budget Document for FY 2011/12 Electric Utility Director Grandi presented the electric, street lighting, and public benefits fund budgets. City Council requested looking at an NCPA assets policy in relation to how it shows on the budget. Staff plans to bring forward the budget format and policy issues to City Council during the electric rate evaluation. Page 2 of 3 6/6/2011 3. UKIAH VALLEY SANITATION DISTRICT (4:30-5:00 PM - June 7) a. Review of Sewer portion of Draft Budget Document for FY 2011/12 Director of Public Works/City Engineer Eriksen presented the sewer division budget at 4:35 pm. No UVSD representative in attendance. 2. BUDGET WORKSHOP SESSION a. Continued Review of Draft City/RDA Budget Document for FY 2011/12 Director of Public Works/City Engineer Eriksen presented the engineering/streets, water, and sewer division budgets. Mayor Rodin left Dais 4:41 pm and returned 4:51 pm. Councilmember Baldwin left the Dais 5:33 pm and returned 5:35 pm. Recessed 6:19 pm. Reconvened 6:26 pm. Community Development and Planning Director Stump presented the planning and building budgets. Assistant City Manager Sangiacomo presented the IT Budget. Finance Director Elton presented the finance, billing and collections, and purchasing/warehouse budgets. City Manager Chambers presented HR/Risk Management budgets. By Consensus, City Council agreed to take a 10% reduction in compensation. City Council directed staff to add the text "$500 per council member" to City Council's training budget description. Assistant City Manager Sangiacomo presented the Ukiah Redevelopment Agency Budget. 4. PUBLIC COMMENT 5. ADJOURNMENT There being no further business, the meeting adjourned at 8:07 pm. JoAnne M. Currie, City Clerk Page 3 of 3 6/6/2011 Item 5b CITY OF UKIAH CITY COUNCIL MINUTES Special Meeting CIVIC CENTER COUNCIL CHAMBERS 300 Seminary Avenue Ukiah, CA 95482 July 14, 2011 5:30 p.m. 1. ROLL CALL Ukiah City Council met at a Special Meeting on July 14, 2011, the notice for which being legally noticed on July 13, 2011. Mayor Rodin called the meeting to order at 5:42 pm. Roll was taken with the following Councilmembers present: Landis, Thomas, and Mayor Rodin. Councilmembers absent: Crane and Baldwin. Staff Present: City Manager Chambers, City Attorney Rapport, Human Resources Director Harris, and City Clerk Currie. Adjourned to Closed Session 5:42 pm 4. CLOSED SESSION a. Conference with Labor Negotiator 54957.6) Agency Representative: Jane Chambers, City Manager Employee Organization: Fire Unit Reconvened 5:47 pm 2. UNFINISHED BUSINESS a. Adoption of Resolution Approving Memorandum of Understanding for Employee Bargaining Unit - Fire Unit Human Resources Director Harris presented the item. The City Manager requested a 10% pay reduction in salary from all bargaining units. The City and the Fire Unit have agreed to a one year continuation of their current 5% salary reduction based upon the fact the fire fighters have been working their regular schedule with a 5% salary reduction for the past 18 months and their 24 hour emergency operations does not allow for a reduction of work hours. Recommended Action(s): adopt the resolution approving the Fire Unit MOU for fiscal year 2011-12. M/S Landis/Thomas to approve Recommended Action. Motion carried by the following roll call votes: AYES: Landis, Thomas, and Mayor Rodin. NOES: None. ABSENT: Crane and Baldwin. ABSTAIN: None 3. PUBLIC COMMENT JR Rose brought to City Council's attention a potential issue with Harold's Square Mobile Home Park. Mr. Rose brought the ordinance and protest paper work to the mobilehome owners. Page 1 of 2 7/14/2011 5. ADJOURNMENT There being no further business, the meeting adjourned at 5:50 pm JoAnne M. Currie, City Clerk Page 2 of 2 7/14/2011 Item 5c CITY OF UKIAH CITY COUNCIL MINUTES Regular Meeting CIVIC CENTER COUNCIL CHAMBERS 300 Seminary Avenue Ukiah, CA 95482 7/20/2011 ROLL CALL Ukiah City Council met at a Regular Meeting on July 20, 2011, the notice for which being legally noticed on July 14, 2011. Mayor Rodin called the meeting to order at 6:05 pm. Roll was taken with the following Councilmembers present: Landis, Thomas, Crane, and Mayor Rodin. Councilmembers absent: Baldwin. Staff Present: City Manager Chambers, Assistant City Manager Sangiacomo, City Attorney Rapport, City Clerk Currie, Director of Finance Elton, Assistant Finance Director Roth, ERP Project Manager Carmichael, Director of Planning and Community Development Stump, and Director of Public Works and City Engineer Eriksen. 2. PLEDGE OF ALLEGIANCE 3. PROCLAMATIONS/INTRODUCTIONS/PRESENTATIONS 4. PETITIONS AND COMMUNICATIONS 5. APPROVAL OF MINUTES a. Regular Meeting of 6/15/11 b. Regular Meeting of 7/6/11 c. Regular Adjourned Meeting of 6/27/11 MIS Landis/Thomas to approve minutes of Regular Council Meetings of 6/15/11, 7/6/11, and 6/27/11 as submitted. Motion carried by all AYE voice vote. 6. RIGHT TO APPEAL DECISION 7. CONSENT CALENDAR a. Report of Disbursements for Month of June 2011 b. Notification And Approval To Continue Yearly Renewals Of Medical Oversite And Direction Contract, As Approved By The Fiscal Year Budget. C. Appointment Of Councilmember Benj Thomas For A Two-Year Term To The Mendocino Transit Authority (MTA) Board Of Directors For The Period July 2011 Through June 2013 d. Report To City Council Regarding The Purchase Of Tree Removal Services For McGarvey Park From Johnson's Quality Tree Care In The Amount Of $6,900.00. e. Report To Council Of Purchase Of A Cybernetics Virtual Tape Library Backup Appliance $9,157.00 From Account 100.1965.690.00, Supplies And Equipment Page 1 of 4 7/20/2011 M/S Thomas/Landis to Approve Items 7a-7e. Motion carried by the following roll call votes: AYES: Landis, Thomas, Crane, and Mayor Rodin. NOES: None. ABSENT: Baldwin. ABSTAIN: None. 8. AUDIENCE COMMENTS ON NON-AGENDA ITEMS Susan Knopf, Ukiah Resident, expressed her disappointment with City Council's decision to discontinue the Planning Commission's stipends and thinks it discourages public input. 9. COUNCIL REPORTS 10. CITY MANAGER/CITY CLERK REPORTS City Manager Chambers reported the women's restroom at Anton Stadium will comply with code and include the eight stalls. The State of California extended the project deadline to June 2015, which gives the City more time to consider changes like those recent decisions made under the old deadline. This item will come back to City Council with options and further discussion given the new deadline. The City received a congratulatory letter for the Skatepark completion from the State. 11. PUBLIC HEARINGS (6:15 PM) a. Adoption Of Resolution Approving A Negative Declaration For The Wastewater Treatment Plant Land Acquisition Project Director of Planning and Community Development Stump presented the item. Recommended Action(s): Open the public hearing and receive any public testimony and continue the matter to the August 3, 2011, City Council meeting. Opened Public Hearing 6:15 pm. Closed Public Hearing 6:16 pm until August 3, 2011. The item was continued to the August 3, 2011, City Council Meeting b. Adoption Of Resolution Ordering The Director Of Public Works To Abate The Nuisance Located At 292 East Gobbi Street After Thirty (30) Days By Removing The Debris From The Demolished Dilapidated Warehouse Structure Director of Planning and Community Development Stump presented the item. The recommended action was to conduct a public hearing and adopt the resolution ordering the abatement of the nuisance located at 292 East Gobbi Street, Ukiah. Because the nuisance was removed, no need exists to continue the proceedings. Recommended Action(s): terminate the proceedings. M/S Crane/Landis to approve termination of proceedings. Motion carried by all AYE voice vote. 12. UNFINISHED BUSINESS a. Authorize The City Manager To Negotiate And Execute A Contract With Tyler Technologies For The Purchase Of Enterprise Resource Planning Software And Amend The Equipment Replacement Budget Page 2 of 4 7/20/2011 Finance Director Elton presented the item. Assistant Finance Director Roth and ERP Project Manager Carmichael were available to answer questions. Kyle Johnson, account manager, Tyler Technologies, gave a brief presentation on the company and was available for questions. Recommended Action(s): Authorize the City Manager to negotiate and execute a contract with Tyler Technologies for the purchase of enterprise resource planning software and approve a budget amendment for account 698 1305 800 000 in the amount of $90,218. M/S Thomas/Landis to approve Recommended Actions. Motion carried by the following roll call votes: AYES: Landis, Thomas, Crane, and Mayor Rodin. NOES: None. ABSENT: Baldwin. ABSTAIN: None b. Approve Change Order For The Remediation System Installation - Ukiah Corporation Yard, Specification No. 10-15 In The Amount Of $25,330 To Lee Howard Construction Director of Public Works/City Engineer Eriksen presented the item. Recommended Action(s): Approve change order for the Remediation System Installation - Ukiah Corporation Yard, Specification No. 10-15 in the amount of $25,300 to Lee Howard Construction. M/S Landis/Thomas to approve the Change Order for the Remediation System Installation - Ukiah Corporation Yard, Specification No. 10-15 in the amount of $25,330 to Lee Howard Construction. Motion carried by the following roll call votes: AYES: Landis, Thomas, Crane, and Mayor Rodin. NOES: None. ABSENT: Baldwin. ABSTAIN: None. 13. NEW BUSINESS a. Adopt As An Urgency Ordinance An Ordinance Providing For The Reinstatement And Continuation Of The Powers Of The Ukiah Redevelopment Agency And Consider Any Other Related Issues To The State's Efforts To Take Local Tax Revenue Used To Fund Job Retention/Creation, Economic Development, Public Infrastructure And Low/Moderate Housing. Assistant City Manager Sangiacomo presented the item. Recommended Action(s): adopt as an urgency ordinance, by not less than a 4/5 vote of the City Council, an ordinance providing for the reinstatement and continuation of the powers of the Ukiah Redevelopment Agency and consider any other related issues to the State's efforts to take local tax revenue used to fund job retention/creation, economic development, public infrastructure and low/moderate housing. M/S Thomas/Landis to adopt by title only. Motion failed by the following roll call votes: AYES: Landis, Thomas, and Mayor Rodin. NOES: Crane. ABSENT: Baldwin. ABSTAIN: None. Motion lacked the 4/5 vote requirement. A majority of the City Council requested to have the item come back for the August 3, 2011, meeting. b. Council Authorization of Letter to State Water Resources Control Board Page 3 of 4 7/20/2011 Regarding Comments on Proposed Draft Russian River Frost Regulation and Russian River Frost Regulation Draft EIR Item pulled because the submittal deadline has passed. 14. CLOSED SESSION - Closed Session may be held at any time during the meeting a. Conference with Labor Negotiator 54957.6) Agency Representative: Jane Chambers, City Manager Employee Organizations: Police, Fire, and Electric Closed Session not heard. 15. ADJOURNMENT There being no further business, the meeting adjourned at 7:32 pm. JoAnne M. Currie, City Clerk Page 4 of 4 7/20/2011 Item 5d CITY OF UKIAH CITY COUNCIL MINUTES Regular Meeting CIVIC CENTER COUNCIL CHAMBERS 300 Seminary Avenue Ukiah, CA 95482 9/15/2010 1. ROLL CALL Ukiah City Council met at a Regular Meeting on September 15, 2010, the notice for which being legally noticed on September 10, 2010. Mayor Thomas called the meeting to order at 6:00 pm. Roll was taken with the following Councilmembers present: Landis, Crane, Rodin, Baldwin (arriving 6:10 pm), and Mayor Thomas. Councilmembers absent: None. Staff present: City Manager Chambers, Assistant City Manager Sangiacomo, City Attorney Rapport, Director of Public Safety Dewey, Director of Public Works and City Engineer Eriksen, Electric Utility Director Grandi, and City Clerk Currie. 2. PLEDGE OF ALLEGIANCE 3. PROCLAMATIONS/INTRODUCTIONS/PRESENTATIONS 4. PETITIONS AND COMMUNICATIONS 5. APPROVAL OF MINUTES 6. RIGHT TO APPEAL DECISION Mayor Thomas left Dias. Vice Mayor Rodin presided over the meeting at 6:05 pm. 7. CONSENT CALENDAR a. Report of Disbursements for Month of August 2010 b. Report to Council of the Expenditure of $8,716.61 to General Pacific, Inc. for the Purchase of 4500 Feet of #2 STR Aluminum Conductor for Inventory Stock for the Electric Utility Department C. Report Purchase to the City Council Regarding the Purchase of Replacement Battery Packs from APC Sales & Service in the Amount of $5647.58 d. Update Report on Local Emergency Declaration Regarding Drought and Water Shortage Status e. Update Report Regarding Status of Water Emergency Conditions Necessitating Emergency Resolution to Expedite Construction of Oak Manor Drive Water Well f. Report to the City Council Regarding the Purchase of A Firewall and Web Filtering Appliance and Three Year Service Contract from Celestix in the Amount of $5,144.06 Mayor Thomas returned and reassumed the gavel. Page 1 of 6 9/15/2010 MIS Landis/Rodin to Approve Items 7a-7f. Motion carried by the following roll call votes: AYES: Landis, Crane, Rodin, and Mayor Thomas. NOES: None. ABSENT: Baldwin. ABSTAIN: None. 8. AUDIENCE COMMENTS ON NON-AGENDA ITEMS 9. PUBLIC HEARINGS (6:15 PM) 10. UNFINISHED BUSINESS a. Direct City Attorney to Prepare a Mobile Home Park Rent Stabilization Ordinance in Accordance With Terms Submitted By Ad/Hoc Committee Members Mayor Thomas and Council Member Baldwin Mayor Thomas and Councilmember Baldwin presented the item. Recommended Action(s): Direct the City Attorney to draft a mobile home park rent stabilization ordinance in accordance with the terms outlined in Attachment #1 of the staff report. Councilmember Baldwin arrived 6:10 pm. Public Comment Opened Speaking in support of the item: Robert Fleak, supports Santa Rosa Ordinance and is not in support of Modesto ordinance; Glen Carlson, commissioner of Rohnert Park, and supports the Santa Rosa Ordinance; Bart Clark, Manor Oaks resident, is not interested in lease unless it is on 'a per tenant basis; Jon Burton, Rancho Del Ray, supports the Santa Rosa Ordinance; Jesse Martin, Manor Oaks, supports the Santa Rosa ordinance; Bob Jones, Manor Oaks, supports the Santa Rosa Ordinance not lease; Lynn Sullivan, Manor Oaks, supports ordinance not lease; JR Rose, Senior Advocate, supports Santa Rosa Ordinance; Al McQuiry; Lisa Hilleges, Managing Attorney of Legal Services of Northern CA, supports the Santa Rosa Ordinance, not lease option; Steve Moore, retired Marine; and Gina Scott, Manor Oaks. Speaking in opposition to the item: Dick Seltzer; Ross Liberty; and Judy Hatch, Owner Shady Grove, not in support of ordinance or long term lease and her tenants are not in support of an ordinance or lease. Public Comment Closed MIS Baldwin/None to approve directing City Attorney to draft an ordinance based on the Santa Rosa Rent Stabilization Ordinance including the recommendations listed in attachment 1 of the staff report and direct the Director of Planning to work with city attorney on the findings section of the ordinance. Motion Failed. MIS Baldwin/Rodin to approve directing the City Attorney and Director of Planning to draft an ordinance based on the elements of the Santa Rosa Ordinance and the recommendations listed on attachment #1 of the staff report. Public Comment Reopened Public speaking to the item: Bart Clark; Jon Burton; Glen Carlson; Robert Fleak; Jasper Osfield, Harold Square; Sunny Beaufeeco, Manor Oaks; Al McQuiry; David Vilner; Bob Jones; Judy Hatch; Lynn Sullivan; and Willard Carlstadt, Manor Oaks. Page 2 of 6 9/15/2010 Public Comment Closed Motion carried by the following roll call votes: AYES: Landis, Rodin, Baldwin, and Mayor Thomas. NOES: Crane. ABSENT: None. ABSTAIN: None Recessed and Reconvened b. Award of Contract to J.F. Pacific Liners, Inc. in the Amount of $545,576.50 for Manhole Rehabilitation & Sewer Pipe Relining 2010, Specification No. 10- 11 and Approve Budget Amendment Director of Public Works/City Engineer Eriksen presented the item noting a change to the staff report; the Ukiah Valley Sanitation District (UVSD) does want to participate and will pay their portion. UVSD will perform their own inspections and will share their portion of costs with the City using the agreed upon formula. UVSD is asking City Council to approve the amendments. Recommended Action(s): award contract to J.F. Pacific Liners, Inc. in the amount of $698,232.50 for Manhole Rehabilitation Sewer Pipe Relining 2010, Specification No. 10-11 and additive bid items; authorize $69,823.25 for approved change orders; and approve the budget amendment. M/S Crane/Landis to approve Recommended Actions. Motion carried by the following roll call votes: AYES: Landis, Crane, Rodin, Baldwin, and Mayor Thomas. NOES: None. ABSENT: None. ABSTAIN: None. C. Approve Amendment to FY 2010/2011 Budget and Authorize the City Manager to Sign Final Payment Agreement for Ukiah Wastewater Treatment Plant Improvement Project - Specification 06-20 Director of Public Works / City Engineer Eriksen presented the item. Recommended Action(s): 1) Approve an amendment of the FY 2010/2011 Budget to include $765,687 for payment to Kiewit. 2) Authorize the City Manager to sign final payment agreement. 3) Direct staff to obtain signature of Kiewit Pacific Construction for release prior to releasing final payment. 4) Direct staff to make the final payment to Kiewit Pacific Construction in the amount of$1,776,128.25 M/S Rodin/Baldwin to approve Recommended Actions. Motion carried by the following roll call votes: AYES: Landis, Crane, Rodin, Baldwin, and Mayor Thomas. NOES: None. ABSENT: None. ABSTAIN: None. d. Approve Amendment #2 to Professional Services Agreement with Harris & Associates for Construction Management Services for the City of Ukiah Wastewater Treatment Plant Improvement Project for an Amount Not to Exceed $46,000 and Budget Amendment for Amendment #1 and #2 Director of Public Works / City Engineer Eriksen presented the item. Recommended Action(s): 1) Direct staff to process contract amendment 2 with Harris and Associates in the amount of $46,050. 2) Direct staff to process a budget amendment in the amount of $46,050. 3) Direct staff to process a budget Page 3 of 6 9/15/2010 amendment in the amount of $82,000 for amendment 1 as approved on the meeting of June 6, 2010. MIS Crane/Landis to approve Recommended Actions. Motion carried by the following roll call votes: AYES: Landis, Crane, Rodin, and Mayor Thomas. NOES: None. ABSENT: None. ABSTAIN: Baldwin. e. Appointment to the Parks, Recreation, and Golf Commission and Adoption of Resolution Making the Appointment Assistant City Manager Sangiacomo presented the item. Recommended Action(s): Waive interview for the one PRGC applicant; make nomination and appointment; and adopt a resolution making the appointment to the PRGC. MIS Landis/Baldwin to approve Recommended Actions. Motion carried by the following roll call votes: AYES: Landis, Crane, Rodin, Baldwin, and Mayor Thomas. NOES: None. ABSENT: None. ABSTAIN: None. Presentation and Discussion of the Electric Utility's Public Benefits Program for Energy Conservation and Customer Assistance (EUD) Electric Utility Director Grandi presented the item. Recommended Action(s): Presentation and discussion of the Electric Utility's Public Benefits Program, Energy Conservation and Customer Assistance Programs. Item will come back to City Council with a program funding increase to approximately $400,000 and information on expanding the customer income guideline. Adjourned to Ukiah Redevelopment Agency at 9:10 pm Reconvened 10:22 pm 10. UNFINISHED BUSINESS g. Authorize the City Manager to Represent the City of Ukiah in Connection With Administrative Civil Liability Complaint No. R1-2010-0070 as Issued by the California Regional Water Quality Control Board Director of Public Works/City Engineer Eriksen presented the item. Recommended Action(s): 1) Authorize the City Manager to represent the City of Ukiah in connection with Administrative Civil Liability Complaint No. R1-2010-0070 as issued by the California Regional Water Quality Control Board. 2) Support option 4 listed in the staff report to waive the hearing requirement with the State Board and submit a proposed supplemental environmental project. MIS Crane/Landis to approve Recommended Actions 1 and 2. Staff to report back to City Council regarding what violations staff could not mitigate and what actions will be taken to address the situation. Page 4 of 6 9/15/2010 Motion carried by the following roll call votes: AYES: Landis, Crane, Rodin, Baldwin, and Mayor Thomas. NOES: None. ABSENT: None. ABSTAIN: None h. Award Professional Services Agreement for Construction Management, Inspection, and Testing Services for the South Dora Street Rehabilitation Project Specification No. 10-01 Director of Public Works/City Engineer Eriksen presented the item. Recommended Action(s): Approve budget amendment and fund transfers and award the professional services agreement to Green Valley Consulting Engineers for construction management, inspection, and testing services for $110,585 (with additional designation for funding in the amount of $11,059 for authorized contract amendments) for the South Dora Street Rehabilitation Project, Specification No. 10- 01. M/S Crane/Rodin to approve Recommended Actions. Motion carried by the following roll call votes: AYES: Landis, Crane, Rodin, Baldwin, and Mayor Thomas. NOES: None. ABSENT: None. ABSTAIN: None 11. NEW BUSINESS a. Response to the Grand Jury: Lobbies, Lawsuits & Legislation: A Report on the Russian River Watershed Director of Public Works/City Engineer Eriksen presented the item. Recommended Action(s): receive the findings and recommendations responses and approve the submission of these materials to the Grand Jury, with authorization of the Mayor to sign the response form on behalf of the City Council. M/S Rodin/Baldwin to approve Recommended Actions. Motion carried by an All AYE unanimous voice vote. b. Consideration of a New Agreement for Automatic Fire Aid between Cal Fire Mendocino Unit and the City of Ukiah Director of Public Safety Dewey presented the item. Recommended Action(s): Authorize the Director of Public Safety to enter into a new Auto Aid Agreement with CAL FIRE. M/S Crane/Baldwin to approve Recommended Action. Motion carried by an All AYE unanimous voice vote. 12. COUNCIL REPORTS Councilmember Rodin reported the public advisory group for the courthouse met on 12- 14-10 to review the site ranking criteria. Two downtown sites ranked high. The Administrative Office of the Courts is taking the two downtown sites to the next step, which is the Public Works Board. The advisory group will issue a press release. Page 5 of 6 9/15/2010 Councilmember Landis reported on the chili cook off in which she and the Mayor participated. Landis is starting to work with the EDFC and Community Foundation to find out why broadband access is not available in this community. Mayor Thomas will be leaving for San Diego to attend a League of California Cities Conference. 13. CITY MANAGER/CITY CLERK REPORTS City Manager Chambers reported the bomber from the Ukiah Airport assisted San Bruno with the gas line fire and was instrumental in that effort. Adjourned to closed session at 10:38 pm. 14. CLOSED SESSION - Closed Session may be held at any time during the meeting a. Conference with Legal Counsel - Anticipated Litigation Government Code Section 54956.9(b)(1) - Significant exposure to litigation (1 case) b. Conference with Labor Negotiator 54957.6) Agency Representative: Jane Chambers, City Manager Employee Organizations: Miscellaneous Unit and Management Unit C. Conference with Real Property Negotiators (§54956.8) Property: APN 180-080-57, 58, 59, 62, 63, 64, 65, 66, 67, and 180-110-08, 09, 10 Negotiator: Jane Chambers, Executive Director Negotiating Parties: Ukiah Redevelopment Agency and Northwest Atlantic (Costco) - Under Negotiation: Price & Terms d. Conference with Real Property Negotiators (§54956.8) Property: APN 002-232-12, 13 and 002-282-18 and 19 APN 002-232-09, 10, 11 Negotiator: Jane Chambers, Executive Director Negotiating Parties: Ukiah Redevelopment Agency, City of Ukiah, North Coast Railroad Authority, Weston Solutions Inc, and Administrative Office of the Courts Under Negotiation: Price and Terms e. Conference with Real Property Negotiators (§54956.8) Property: APN 002-192-01, 02, 03, 11, 14 and 18 Negotiator: Jane Chambers, Executive Director Negotiating Parties: Ukiah Redevelopment Agency, City of Ukiah, and Administrative Office of the Courts Under Negotiation: Price and Terms Reconvened in Open Session at 10:50 pm with no reportable action. 15. ADJOURNMENT There being no further business, the meeting adjourned at 10:50 pm. JoAnne M. Currie, City Clerk Page 6 of 6 9/15/2010 city CyJ"z.!kjafi ITEM NO.: 7a MEETING DATE: AGENDA SUMMARY REPORT August 3, 2011 SUBJECT: APPROVE CITY COUNCIL RESPONSE TO GRAND JURY REPORT TITLED: "MASTERS OF FIXING DISASTERS" Background: Each year, the Mendocino County Grand Jury selects topics to investigate and report on. This year, the Grand Jury prepared the report, "Masters of Fixing Disasters". Discussion: The Grand Jury report, Masters of Fixing Disasters, reports on Parlin Fork and Chamberlin Creek, California Department of Corrections and Rehabilitation Conservation Camps, run in partnership with CAL FIRE. This report provides a summary of the camps, background history of their establishment, and a number of investigative findings and recommendations. The City of Ukiah utilizes Inmate Crews for various projects within the City of Ukiah, and the Ukiah Police Department utilizes the firearms range maintained at Chamberlin Creek Conservation Camp. The Mendocino Grand Jury has requested a response from the Ukiah City Council on their report. A recommended response was prepared by the Director of Public Safety for Council consideration. Fiscal Impact: Budget Amendment Required Budgeted FY 11/12 F-1 New Appropriation ❑X Not Applicable F Recommendations: Approve City Council Response to the Mendocino County Grand Jury Report titled, "Masters of Fixing Disasters." Recommended Action(s): Approve City Council Response to the Mendocino County Grand Jury Report titled, "Masters of Fixing Disasters". Alternative Council Option(s): Provide Staff with an alternative response Citizens advised: Requested by: Mendocino County Grand Jury Prepared by: Chris Dewey, Director of Public Safety Coordinated with: Jane Chambers, City Manager Attachments: Masters of Fixing Disasters Report, and Recommended Response to Report Approved:, J e Ch bers, City Manager ATTACHMENT I MASTERS OF FIXING DISASTERS A Report on Parlin Fork and Chamberlain Creek Conservation Camps April 30, 2011 Summary The California Department of Corrections and Rehabilitation (CDCR) operate Parlin Fork and Chamberlain Creek Conservation Camps, in conjunction with CAL FIRE. Both camps are located in the Jackson State Demonstration Forest on Highway 20, between Fort Bragg and Willits. The camps are for low-risk male felons. Fire prevention and fire suppression are the two primary goals. Inmates receive fire training at the California Correctional Center (CCC) located in Susanville. When not fighting fires, inmate crews clear brush in the forest, perform various labors for government and certain non-profit organizations. Inmate crews contribute to the community by performing charitable deeds. They also donate hobby crafts to charitable organizations for fund raising; inmates are required to use their own time, tools, and materials. There are educational opportunities for the inmates, correspondence courses for both G.E.D. and college. Inmates are taught various skills which can be valuable to them upon their release. Parlin Fork (PFCC) and Chamberlain Creek (CCCC) are tobacco free honor camps with no fencing. Out of Bounds signs are clearly posted. Methods California Penal Code §919(b) states that, "...the Grand Jury shall inquire into the conditions and management of public prisons within the county." The 2010-2011 Mendocino County Grand Jury (GJ) visited Parlin Fork Conservation Camp on October 29, 2010 and Chamberlain Creek Conservation Camp on December 9, 2010. The GJ interviewed CAL FIRE personnel and CDCR Officers, reviewed documents, and inspected both facilities. Background Parlin Fork is the oldest conservation camp in Northern California, established on August 8, 1949, and is the second oldest in the State. Chamberlain Creek was opened on June 8, 1959. Inmate crews are over-seen by CAL FIRE when not in camp. The Mendocino County Sheriff's Office and the Ukiah Police Department SWAT teams train at Chamberlain Creek gun range. Findings - Both Camps PFCC and CCCC are staffed by CAL FIRE and California Department of Corrections and Rehabilitation (CDCR) and are located on Highway 20 in the Jackson State Demonstration Forest. One Administrative Assistant is shared by both camps and CAL FIRE. 2. Each camp maintains five fire crews comprised of 13-17 inmates for emergency deployment year around. Each crew is overseen by one Fire Captain. One crew remains in camp at all times. 3. CDCR is responsible for the supervision, care, and discipline of inmates. CAL FIRE maintains the camp, supervises the work of inmate fire crews, and is responsible for custody of inmates under the daily CAL FIRE project activity. 4. During emergencies, such as fires or floods, CDCR staff accompanies the inmate crews to assist in the care and the security of the inmates, and provide support to the CAL FIRE staff 5. Inmates committed to CDCR are selected and trained at the California Correctional Center (CCC) located in Susanville and then assigned to conservation camps. Camp inmates are low security risks. Those who commit crimes that are violent, sexual, arson and/or escape attempts are ineligible. 6. Inmates not on fire crews serve as cooks, porters, landscapers, launders, clerks, maintenance, and support activity workers. 7. Inmates are paid for their work; the majority of inmates are laborers, who receive $1.45 per day. The skilled inmates that can earn up to $2.45 per day include: mechanics, clerks, cooks, plumbers, welders, carpenters, and electricians. CAL FIRE pays inmates $1.00 per hour, portal to portal, when fighting fires. 8. Most inmates are serving time for drug and/or alcohol related offenses. 9. Fire crews respond to fires, flood, accidents, and other disasters. Crews clear brush, maintain hiking trails, provide fire wood for camp grounds and non-profit organizations, such as the Senior Center in Willits. 10. Inmates make civic contributions, such as, cooking Thanksgiving Dinner at the Willits Senior Center, and also donate hobby craft to non-profits for their fund raising sales. Hobby crafts are made by inmates using their own time, tools and funds for materials. 11. Crews perform work for government entities and non-profits. Some of the work includes campground trails, painting, parking lot repair, and brush clearing. 12. Crew work is billed at $224 per day to offset fuel cost and equipment use, and includes an administrative fee of $24. No profit is derived from these activities; however, the income reduces government cost for camp maintenance. 2 13. Both camps bake their own bread and pastries, and cook all foods from scratch. The State food budget per inmate per day is $2.55: the same amount as in the early 1980's. 14. Both camps have a garden area where vegetables and fruit are grown, saving on their food budget. 15. When inmates are fighting fires, CAL FIRE furnishes their meals. 16. Educational opportunities are available by correspondence, including G.E.D., college and certification courses. Some inmates, who have worked with the Licensed Water Plant Operator, have obtained their State Certification; upon release, they were hired by private/civic water companies. 17. Mendocino County Transit Authority (MTA) provides transportation for released inmates 18. Books, magazines, television, an exercise room, and recreational facilities, such as a baseball diamond are available. The County Bookmobile visits every two weeks and is highly valued by the inmates. 19. Volunteers from non-denominational churches provide services. Narcotics Anonymous and Alcoholics Anonymous meetings are conducted by local volunteer organizations or the inmates. 20.The remoteness of the camps makes visiting difficult. Visitors must be pre-approved by CCC prison staff; visitation is on Saturdays and Sundays. Weekend family visits can be up to three days in a fully furnished cottage on the grounds at each camp. 21. There are no fences at the camps, but Out of Bounds signs are clearly posted. Camps are tobacco free. 22. Conservation camps abide by all government regulations, including reporting and safety. 23. Staffing for CDCR at each camp consists of: one Correctional Lieutenant (Camp Commander), one Correctional Sergeant, eight Correctional Officers, and one part- time Administrative Assistant shared between both camps. Findings - Parlin Fork 24. Inmate capacity is 110 low-risk minimum custody male felons, who are housed in barrack style buildings. 25. Staffing for CAL FIRE consists of: one Assistant Chief (Division Chief), 10 Fire Crew Captains, one Heavy Equipment Mechanic, and one Chief Plant Operator. 26. The camp has its own water treatment plant and the waste water is pumped up the hill to a holding pond and leach field. The PFCC treats its own water, drawn from the Noyo River. 27. The day before the GJ visit, the waste water pump had failed and there was no water available for cooking or for toilet use. Infiltration from the recent storm may have contributed to the failure. 3 28. The camp operates a saw mill and provides rough cut lumber to government agencies. New state of the art saw mill equipment was acquired from excess inventory of the State. There is also a cabinet shop where cabinets and shelving are crafted. Recently, PFCC made cabinets for a library. 29. The PFCC repairs and maintains equipment for both camps and for CAL FIRE facilities. 30. The kitchen was observed to be clean, sanitary, and inmates prepare all meals. Findings - Chamberlain Creek 31. CAL FIRE staff consists of 15 employees: one Chief, 10 Captains, one Water/Waste Water Licensed Plant Operator, and three Heavy Equipment Operators. 32.The maximum capacity of the camp is 112, low-risk minimum custody male felons. On the day of the GJ visit, there were 106 inmates. 33. Inmates design, build, and finish cabinets, doors, and signage. The products are sent to the CDCR Headquarters, other government facilities, and public agencies. 34. Recent projects include Lake Sonoma Dam clean-up, Laytonville School District building maintenance, Cow Mountain brush clearance and fire breaks. 35. Inmates perform a valuable service in conservation by harvesting Redwood tree seeds from cones; collecting seeds is arduous and tedious work. Viable seed cones are only produced when weather and water conditions are appropriate. The seeds are part of a conservation seed bank designed to preserve Redwood trees. 36. Crews remove fallen and dangerous trees in Jackson State Demonstration Forest. Removed logs are transported to Parlin Fork, where they are milled. 37. Inmates contribute to the annual Ukiah Christmas Effort at Ukiah Fairground, where food and toys are distributed for approximately 750 families. The CCCC kitchen crew cooks and serves community Thanksgiving dinner at the Harrah's Senior Center in Willits every year. Inmate crews prepare the site for the Willits Frontier Days event, and help with clean-up. 38. The CCCC water is provided by a well and surface water is drawn from Chamberlain Creek. Recommendations The Grand Jury recommends that: 1. the Board of Supervisors continue to fund the Bookmobile to service the camps on the current schedule, (Finding 18) 2. the crews be utilized as often as possible, by any City, County department, agency, school district, special district, or tax-supported entity within the County, (Findings 9- 12, 28, 33-34, 37) 4 3. CAL FIRE and California Conservation Corps continue to operate the camps in the same efficient manner, and perform services within the community. (All Findings) Discussion Parlin Fork and Chamberlain Creek are well managed and utilize their resources to maximum capacity. Staff encourages inmates to develop job skills and continue their education. Conservation camps freely give mutual aid to other agencies, including local fire districts, as well as assistance to other safety agencies. In the 2008 lightning fires, 11 counties, the National Guard, and several states, including Nevada, Utah, and Colorado came to the aid of Mendocino County. The Mendocino County Library's Bookmobile is a valuable resource for inmates in both camps. According to the press, the bookmobile is an item under discussion for future budget reductions. Products produced by inmates are sold to public agencies for only the cost of the material; thereby, saving public dollars. The success of the camps can be attributed to the good relationship between CDCR and CAL FIRE, as demonstrated by the cooperative effort of their respective commanders and staff at each camp. Required Responses Board of Supervisors (Finding 18; Recommendation 1) Mendocino County Library (Finding18; Recommendation 1) Ukiah, Willits, Fort Bragg, and Point Arena City Councils (Findings 9-12, 28, 34, 37; Recommendation 2) Mendocino County Superintendent of Public Education (Findings 9-12, 28, 34, 37; Recommendation 2) Requested Responses CAL FIRE (All Findings; Recommendation 3) Parlin Fork Conservation Camp Commander (Findings 1-30; Recommendation 3) Chamberlain Creek Conservation Camp Commander (Findings 1-22, 31-38; Recommendation 3) 5 ATTACHMENT County of Mendocino Post Office Box 939 Grand Jury Ukiah, CA 95482 www.co.mendocino.ca.us/grandjury grandjury@co.mendocino.ca.us Grand Jury Report Transmittal (with Instructions and Response Form for Required Respondents) Jane Chambers, Manager City of Ukiah 300 Seminary Ave Ukiah, CA 95482 Date: June 3, 2011 RE: Report Titled: MASTERS OF FIXING DISASTERS Report Dated: April 30, 2011 Your response to the attached report by the 2010/2011 Mendocino County Civil Grand Jury is required pursuant to Penal Code §933.05 (enclosed). Penal Code §933.05 also requires that your response to the Findings and Recommendations contained in the report be in writing and be submitted within 60 days for individual responses from elected county officers or agency head or within 90 days for governing bodies (including such entities as school boards, city councils and the Board of Supervisors). Penal Code §933.05(f) specifically prohibits disclosure of the contents of this report by a public agency or its officers or governing body prior to the release to the public. The report will be released to the public and posted on the grand jury website two (2) or more days after the date of this letter. The Penal Code is specific as to the format of responses. Complete and sign the enclosed Response Form and attach any additional comments as required. Should you have any questions after reviewing the enclosures, please contact me at grandjury@co.mendocino.ca.us or at the address above. Sincerely, Katharine Wylie Katharine Wylie Foreperson Mendocino County Grand Jury For your 116rM800" SUMMARY OF PENAL CODE 933.05 Penal Code § 933.05 provides for only two (2) acceptable responses with which agencies and/or departments (respondents) may respond with respect to the findings of a Grand Jury report : 1. The respondent agrees with the finding. 2. The respondent disagrees wholly or partially with the findings, in which case the respondent shall specify the portion of the finding that is disputed and shall include an explanation of the reasons therefore. Penal Code § 933.05 provides for only four (4) acceptable responses with which agencies and/or departments (respondents) may respond with in respect to the recommendations of the Grand Jury. 1. The recommendation has been implemented, with a summary regarding the implemented action. 2. The recommendation has not yet been implemented, but will be in the future, with a timeframe for implementation. 3. The recommendation requires further analysis, with an explanation and the scope and parameters of an analysis, with a timeframe for the matter to be prepared for discussion by the officer or head of the agency/department being investigated or reviewed, including the governing body of the public agency when applicable. This timeframe shall not exceed six (6) months from the date of publication of the Grand Jury Report. 4. The recommendation will not be implemented because it is not warranted or is not reasonable, with a detailed explanation therefore. However, If a finding and/or recommendation of the Grand Jury addresses budgetary or personnel matters of a county agency/department head and the Board of Supervisors shall respond if requested by the Grand Jury, but the response of the Board of Supervisors shall address only those budgetary or personnel matters over which it has some decision making authority. The response of the elected agency or department head shall address all aspects of the findings or recommendations affecting his or her agency/department. Grand Jury Report RESPONSE FORM RE: Report Titled: MASTERS OF FIXING DISASTERS Report Dated. April 30, 2011 Response Form Submitted By: Jane Chambers, Manager City of Ukiah 300 Seminary Ave Ukiah, CA 95482 Response MUST be submitted, per Penal Code §933.05, no later than: August 3, 2011 I have reviewed the report and submit my responses to the FINDINGS portion of the report as follows: ❑ I (we) agree with the Findings numbered: 9-12, 28, 34, 37 ❑ I (we) disagree wholly or partially with the Findings numbered below, and have attached, as required, a statement specifying any portion of the Finding that are disputed with an explanation of the reasons therefore. I have reviewed the report and submit my responses to the RECOMMENDATIONS portion of the report as follows: ❑ The following Recommendation(s) have been implemented and attached, as required, is a summary describing the implemented actions: 2 ❑ The following Recommendation(s) have not yet been implemented, but will be implemented in the future, attached, as required is a time frame for implementation: GRAND JURY REPORT RESPONSE FORM PAGE TWO ❑ The following Recommendation(s) require further analysis, and attached as required, is an explanation and the scope and parameters of the planned analysis, and a time frame for the matter to be prepared, discussed and approved by the officer and/or director of the agency or department being investigated or reviewed: (This time frame shall not exceed six (6) months from the date of publication of the Grand Jury Report) ❑ The following Recommendations will NOT be implemented because they are not warranted and/or are not deemed reasonable, attached, as required is an explanation therefore: I have completed the above responses, and have attached, as required the following number of pages to this response form: Number of Pages attached: I understand that responses to Grand Jury Reports are public records. They will be posted on the The clerk of the responding agency is Grand Jury website: www.co.iiiendocino.cct.yLlgranditr required to maintain a copy of the response. I understand that I must submit this signed response form and any attachments as follows: First Step: E-mail responses (word documents or scanned pdf file format) to: • The Grand Jury Foreperson at: rg andjury a,co.mendocino.ca.us • The Presiding Judge c/o: sally. nevarez~mendocino.courts. ca.~t,ov • The County's Executive Office: anceloc@co.rnendocino.ca.us Second Step: Mail all originals to: Printed Name: Title: Mendocino County Grand Jury P.O. Box 939 Ukiah, CA 95482 Signed: Date: Recommendations: #2 The City of Ukiah utilizes the Parlin Fork and Chamberlain Creek Conservation Camp Inmate crews to assist in projects such as Railroad Track Clean-up and maintenance. City oJ_T-1kiafi ITEM NO.: 7b MEETING DATE: AGENDA SUMMARY REPORT August 3, 2011 SUBJECT: AWARD THE PURCHASE OF FC300 ITRON HANDHELD METER READING DEVICES TO NATIONAL METER & AUTOMATION, INC. IN THE AMOUNT OF $15.742.28. Staff is requesting City Council's approval to award the purchase of Itron FC300 handheld meter reading devices, along with charging stations, set-up and training to National Meter & Automation, Inc. in the amount of $15,742.28. The new handhelds will replace the existing FC200 handhelds used by the City's meter readers. This purchase is necessary because the current devices which are used daily are in their fifth year of service. Itron has discontinued this model and as of December 31St of this year will no longer offer any maintenance contracts and only offer, at a substantial price, limited service while parts last. The technology has also improved over these past five years and this replacement will bring us up-to-date with it. On July 18, 2011, a Request for Bid was issued. Two bids were received. Below is a summary: National Meter & Automation General Pacific Quantity Unit Price Extended Price Unit Price Extended Price FC300 Itron Handheld Device 3 $4,450.00 $13,350.00 $4,590.00 $13,770.00 Charging Stations 3 $420.00 $1,260.00 $423.00 $1,269.00 Set-up of the devices. 1 Included Included $2,500.00 $2,500.00 Training 1 Included Included Included Included Tax 1 $1,132.28 $1,132.28 $1,165.52 $1,165.52 TOTAL $15,742.28 $18,704.52 Funds for this purchase are included in the budget for FY 2011/2012: 50% 800.3765.302.000, and 50% from 820.3960.800.000. Fiscal Impact: Not Applicable Budget Amendment Required Budgeted FY 11/12 1-1 New Appropriation 1-1 F Amount Budgeted Source of Funds (title and Account Number $8500 Electric Fund, Equipment Maint & Repairs 800.3765.302.000 $8200 Water Fund, Machinery and Equipment 820.3960.800.000 Recommended Action(s): Award the bid to National Meter & Automation, Inc. Alternative Council Option(s): Do not award the bid, and provide alternate direction. Citizens advised: N/A Requested by: Tim Eriksen, Public Works Director and Mel Grandi, Electric Utility Director Prepared by: Mary Horger, Purchasing Supervisor & Jill Scott, Utility Service Attendant/Team Leader Coordinated with: Jan Newell, Finance Controller, and Jane Chambers, City Manager Attachments: N/A Approved: ,,c~~,~ ~~r 1 J9 e C mbers, City Manag city at 'ZlkitaFi. ITEM NO.: 7c MEETING DATE AGENDA SUMMARY REPORT August 3, 2011 SUBJECT: APPROVE A CHANGE ORDER TO THE CONTRACT WITH JT&T ENTERPRISES FOR THE REPAIRS AT THE OBSERVATORY HOUSE TO INCLUDE THE ADD-ALTERNATE ITEM FOR INTERIOR PAINT. Background: The City of Ukiah Community Services Department manages the Observatory Park facility which includes a number of buildings and structures. The Observatory House has received a number of repairs over the years such as a new roof, exterior paint and windows. The house has been vacant for a number of years and the inside of the house has not received any repairs. During the past year, the Ukiah Unified School District expressed an interest in the use of the house for the Community Transition Program (CTP). Staff brought this item to the City Council in late 2010. Upon receiving direction from Council, staff continued discussions and meetings on this topic. The Ukiah Unified School Board took action on this item on June 14, 2011 and approved the terms of the lease agreement. On July 6, 2011, the City Council authorized the City Manager to negotiate and execute the lease agreement with the School District. The Community Transition Program (CTP) is for students ages 18-22 years old with developmental disabilities. The program provides students with training in vocational and living skills within a community setting. It is a small program of teachers and students with program hours Monday through Friday, 8am-3pm. The program will begin at the Observatory House with the new school year on August 22, 2011. Discussion: Community Services staff collaborated with the Purchasing Supervisor to prepare a request for bid for the repairs to the interior of the house. The request for bid was organized with the carpentry and plumbing work items in the base bid price and the paint work items in the add-alternate bid price. Bids were received on July 25th from four qualified contractors. Base Bid Add Alternate Total JT&T Enterprises $7,731 $8,750 $16,481 RG Clark Construction $10,275 $6,516 $16,791 Cupples & Sons $9,925 $7,889 $17,814 Ukiah Construction $17,790 $8,810 $26,600 Recommended Action(s): Approve change order to contract with JT&T Enterprises for the repairs at the Observatory House to include the add-alternate item for the interior paint. Alternative Council Option(s): Remand to Staff with direction. Citizens advised: N/A Requested by: N/A Prepared by: Mary Horger, Purchasing and Katie Marsolan, Community Services Coordinated with: Jane Chambers, City Manager, and Sage Sangiacomo, Assistant City Manager Attachments: Approved: Jae Cha hers, City Manager The repairs include bathroom toilet, sink, expanding three doorways from 30 inches to 36 inches and new paint throughout the house. The low bid was from JT&T Enterprises with the base bid at $7,731 and the alternate at $8,750. The bid request requires the contractor to finish the repairs by August 11, 2011 so that the Community Transition Program can move into the facility before school starts, Due to the time constraints the work was awarded for the base bid so that the contractor would have as many work days as possible. The contract was awarded on July 25th for the base bid and the contractor began work on July 27 for the carpentry and plumbing items. The add-alternate item takes the contract amount above $10,000 which requires Council approval. Therefore, the recommended action is for Council to approve a change order to include the add-alternate item. This work is budgeted in the Park Development Fund. Fiscal Impact: Budgeted FY 11/12 ❑ New Appropriation Amount Budgeted Source of Funds (title and $130,000 Park Dev: Observatory Not Applicable ❑ Budget Amendment Required Account Number Addit. Appropriation Requested 140.6050.930.000 n/a city oy" ZJkir7- z ITEM NO.: 7d MEETING DATE: August 3, 2011 AGENDA SUMMARY REPORT SUBJECT: AWARD PURCHASE OF BIOSOLIDS HAULING SERVICES FOR A TWO YEAR PERIOD TO TOTAL WASTE SYSTEMS Submitted for the City Council's consideration and action is Staff's recommendation that the purchase of services to haul biosolids for a two year period be awarded to Total Waste Systems in the amount of $51.00 per ton, for an approximate total of $183,600. The City of Ukiah's Wastewater Treatment Plant treats and processes approximately 1800 tons biosolids annually. Biosolids produced at the treatment plant facility are treated to meet Class "B" requirements per EPA 40 CFR, 503. Biosolids are dewatered on a belt filter press with a solids content ranging from 23 to 26 percent. The biosolid hauling services consist of leaving a trailer or drop box to be left at the treatment plant to allow loading at Staff's convenience. When the container is full, the contractor is called to remove and route the biosolids to an accepting, pre-approved disposal site. Request for bids were sent to twelve companies. Three bids were received. The following is a summary of the bid results: Company Total Hauling Per Ton Extended 1) Total Waste Systems 1 yr @ approx. 1800 tons $51.00 $ 91,800.00 Santa Rosa, CA 2 yr @ approx. 3600 tons $51.00 $183,600.00 2) Lone Tree Trucking 1 yr @ approx. 1800 tons $57.81 $104,058.00 Byron, CA 2 yr @ approx. 3600 tons $61.85 $222,660.00 3) Industrial Carting 1 yr @ approx. 1800 tons $95.00 $171,000.00 Rohnert Park, CA 2 yr @ approx. 3600 tons $95.00 $342,000.00 It is Staff's recommendation that this purchase be awarded to Total Waste Systems for a two year period at the unit price of $51.00 per ton, for an approximate total amount of $183,600. Invoicing will be based on actual tonnage. Funds for this purchase are included in the budget for FY 11/12 in fund 612.3580.250.008. Fiscal Impact: New Appropriation Not Applicable Budget Amendment Required Budgeted FY 11/12 F Amount Budgeted Source of Funds (title and $100,000 WWTP Bio-Solid Disposal Fees Account Number Add'I Appropriation N/A 612.3580.250.008 Recommended Action(s): Award purchase to haul biosolids to Total Waste Systems for a two year period at the unit price of $51.00 per ton. Alternative Council Option(s): Reject bids and provide direction to Staff. Citizens advised: N/A Requested by: Tim Eriksen, Director of Public Works Prepared by: Mary Horger, Purchasing Supervisor Coordinated with: Andy Luke, WWTP Supervisor, Jane Chambers, City Manager Attachments: N/A Approved: J ham rs, City Manager ITEM NO.: MEETING DATE: City aJ_T1kiafi AGENDA SUMMARY REPORT 11a August 3, 2011 SUBJECT: ADOPTION OF RESOLUTION APPROVING A NEGATIVE DECLARATION FOR THE CITY OF UKIAH WASTEWATER TREATMENT PLANT LAND ACQUISITION PROJECT SUMMARY: The 43-acre parcel of land adjacent to and south of the existing Wastewater Treatment Plant is for sale, and at the direction of the City Council, Staff has negotiated a purchase price for the land and the potential sale is in escrow. While there currently is no plan to expand the existing Plant, the purchase is important in the event additional land is needed in the future. The purchase of the land is considered a "Project" pursuant to the California Environmental Quality Act (CEQA) and the City must conduct environmental review to satisfy CEQA requirements. The purpose of this Agenda Item is for the City Council to conduct a public hearing and consider adoption of a Resolution approving a Negative Declaration for the project. DISCUSSION: Staff prepared an Initial Environmental Study to determine if the acquisition of the property (Project) would have a significant impact on the environment. Based on the information contained in the Study, Staff concluded that the Project would not have a potentially significant adverse impact on the environment and therefore a Negative Declaration was appropriate for the project. Findings Supporting a Mitigated Negative Declaration The proposed Negative Declaration includes the following findings: Based upon the analysis, findings and conclusions contained in the Initial Environmental Study, the project does not have the potential to degrade the quality of the local or regional environment; 2. Based upon the analysis, findings and conclusions contained in the Initial Environmental Study, the project will not result in short-term impacts that will create a disadvantage to long-term environmental goals; Continued on Paae 2 Recommended Action(s): 1) Conduct a public hearing; 2) Adopt the Resolution approving the Negative Declaration for the City of Ukiah purchase of land adjacent to the Wastewater Treatment Plant. Alternative Council Option(s): Do not approve the Negative Declaration and provide direction to Staff. Citizens advised: Publicly Noticed as required by law. 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 Attachments: 1) Resolution 2) Initial Environmental Study and Negative Declaration Approved: Q Ja "e Ch% bers, City Manager 3. Based upon the analysis, findings and conclusions contained in the Initial Environmental Study, the project will not result in impacts that are individually limited, but cumulatively considerable; and 4. Based upon the analysis, findings and conclusions contained in the Initial Environmental Study, the project will not result in environmental impacts that will cause substantial adverse effects on human beings, either directly or indirectly. 5. The Phase 1 Environmental Study and soil sample testing prepared by LACO Associates reveal trace amounts of DDT, which was assumed to have been applied as a pesticide at a time when it was legal to do so. The trace amounts were substantially below all screening level thresholds maintained by the State Department of Toxic Substance Control and State Regional Water Quality Control Board, and therefore did not represent a potentially significant adverse impact. 6. The Initial Environmental Study examined areas of potential impacts and it has been determined that the proposed purchase of land in and of itself would not have significant adverse impacts on the environment because no site disturbance, grading, construction or development is proposed as part of the project. It would be speculative and unreasonable to assume what size, type and intensity of development might be proposed on the site in the future. Any future development would be subject to separate environmental review pursuant to the requirements of the California Environmental Quality Act. The actual size, scope and intensity of any future development project would be analyzed to determine if it would adversely impact the environment. Public Review: The proposed Negative Declaration was made available for public review and noticed accordingly. It was also sent to the State Clearinghouse at the Office of Planning and Research for distribution to State agencies. The review period lasted from June 13, 2011 through July 13, 2011 and no written comments were received. Accordingly, no Responses to Comments have been prepared. At the August 3, 2011 public hearing, the Council is obligated to receive public testimony, but is not required to receive written comments. To do so would be inappropriate and unfair to the public who understood and considered the June 13, 2011 - July 13, 2011 written comment period. RECOMMENDATION: 1. Conduct a public hearing 2. Adopt the Resolution approving the Negative Declaration Fiscal Impact: ❑ Budgeted FY 11/12 1-1 New Appropriation X❑ Not Applicable Budget Amendment Required ATTACHMENT NO. 1 RESOLUTION NO. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF UKIAH MAKING FINDINGS PURSUANT TO PUBLIC RESOURCES CODE SECTION 21081 AND CALIFORNIA ENVIRONMENTAL QUALITY ACT ("CEQA") GUIDELINES SECTION 15091 IN CONNECTION WITH CITY OF UKIAH PURCHASE OF REAL PROPERTY - ADJACENT TO THE WASTEWATER TREATMENT PLANT WHEREAS: 1. The City of Ukiah as Lead Agency, has prepared an Initial Environmental Study and a Negative Declaration, dated June 10, 2011 (Revised July 8, 2011) for the City of Ukiah Purchase of Real Property - Adjacent to the Wastewater Treatment Plant; and 2. The purchase would involve the acquisition of an approximate 43-acre parcel of land; and 3. The Initial Environmental Study and Negative Declaration found that the proposed purchase of property in and of itself would not have significant adverse impacts on the environment because no site disturbance, grading or construction would occur and the zoning and development opportunities would not change as a result of the change in ownership of land; and 4. Future development projects on the subject parcels would be subject to CEQA evaluation, and determinations made as to whether or not those projects would result in significant adverse impacts on the environment; and 5. The Initial Environmental Study and Negative Declaration were publicly noticed and made available for public review and written comments between June 13, 2011 and July 13, 2011, and no written comments were received; and 6. The Initial Environmental Study and Negative Declaration were transmitted to the California State Clearinghouse for distribution to State Agencies for review, and no comments were received; and 7. Public Resources Code Section 21081 and CEQA Guidelines Section 15091 provide that the City shall not approve or carry out a project for which an EIR has been completed which identifies one or more significant environmental impacts, unless it makes specified findings. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Ukiah finds as follows: 1. Based upon the analysis, findings and conclusions contained in the Initial Environmental Study, the project does not have the potential to degrade the quality of the local or regional environment; 2. Based upon the analysis, findings and conclusions contained in the Initial Environmental Study, the project will not result in short-term impacts that will create a disadvantage to long-term environmental goals; 3. Based upon the analysis, findings and conclusions contained in the Initial Environmental Study, the project will not result in impacts that are individually limited, but cumulatively considerable; 4. Based upon the analysis, findings and conclusions contained in the Initial Environmental Study, the project will not result in environmental impacts that will cause substantial adverse effects on human beings, either directly or indirectly; 5. The Phase 1 Environmental Study and soil sample testing prepared by Laco Associates reveal trace amounts of DDT, which was assumed to have been applied as a pesticide at a time when it was legal to do so. The trace amounts were substantially below all screening level thresholds maintained by the State Department of Toxic Substance Control and State Regional Water Quality Control Board, and therefore did not represent a potentially significant adverse impact; 6. The Initial Environmental Study examined areas of potential impacts and it has been determined that the proposed purchase of land in and of itself would not have significant adverse impacts on the environment because no site disturbance, grading, construction or development is proposed as part of the project. Any future development would be subject to separate environmental review pursuant to the requirements of the California Environmental Quality Act. The actual size, scope and intensity of any future development project would be analyzed to determine if it would adversely impact agricultural resources. It would be speculative and unreasonable to assume what size, type and intensity of development might be proposed on the site in the future. Conclusion: The City Council is able to conclude that the proposed purchase of land adjacent to the Wastewater Treatment Plant in and of itself would not have significant adverse impacts on the environment because no site disturbance, grading or construction is proposed, and the zoning and development opportunities would not change as a result of the change in ownership of land. The Council is also able to conclude that future development projects on the subject parcels would be subject to CEQA evaluation, and determinations made, based on the size, type and intensity of development, whether or not significant adverse impacts would result from any future development project. PASSED AND ADOPTED this 3rd day of August, 2011 by the following roll call vote: AYES: NOES: ABSENT: ABSTAIN: Mari Rodin, Mayor ATTEST: Joanne Curry, City Clerk Cif kiah Attachment # Z California Environmental Quality Act INITIAL ENVIRONMENTAL STUDY AND NEGATIVE DECLARATION Wastewater Treatment Plant Land Acquisition Department of Planning and Community Development June, 2011 (Revised July 14, 2011) Initial Environmental Study/Negative Declaration Wastewater Treatment Plant Land Acquisition Page 1 Cit fah Department of INITIAL ENVIRONMENTAL STUDY Planning and Community Development Wastewater Treatment Plant Land Acquisition Project Title: Wastewater Treatment Plant Land Acquisition Project Proponent: City of Ukiah Public Works Department Project Contact Person: Tim Eriksen, Director of Public Works/City Engineer (707) 463-6280 CEQA Contact Person: Charley Stump, Director of Planning and Community Development (707) 463-6219 / 300 Seminary Avenue, Ukiah, CA 95482 Lead Agency: City of Ukiah - 300 Seminary Avenue, Ukiah, CA 95482 Project Description: The City is proposing to purchase a 43 acre parcel south of and adjacent to the existing wastewater treatment plant. The purpose of the acquisition is to have land adjacent to the treatment plant that would be available for expansion of the facility if it is necessary in the future. Currently, there are no plans and no need to expand the facility. The purpose of the project is to bank the land for possible future use. The property is located at 3495 Taylor Drive, Ukiah, CA (APN 184-150-01). Project Location: The wastewater treatment plant is located on an island of land in the southernmost portion of the City limits. It is adjacent to the Russian River and includes three percolation ponds. Access to the site if off of South State Street via Plant Road and Taylor Drive. The parcel to be acquired is located adjacent to and south of percolation pond number 2 (see air photograph - page 5). Environmental Setting: The existing wastewater treatment plant and the parcel to be acquired are located adjacent to and west of the Russian River. Agricultural lands are adjacent to the south and north, and the NWP railroad tracks, Highway 101, and industrial land uses are located to the west. Purpose of the Initial Environmental Study: This Initial Study has been prepared consistent with CEQA Guidelines Section 15063, to determine if the project, as proposed, would have a significant Impact upon the environment. Summary of Findings: Review of the proposed project to acquire approximately 43 acres of land adjacent to the existing wastewater treatment plant in and of itself would not adversely impact the Initial Environmental Study/Negative Declaration Wastewater Treatment Plant Land Acquisition Page 2 environment because no construction or development is proposed and it would not change or alter in any way the General Plan land use designation or zoning classification on the property. Moreover, any future development, such as an additional percolation pond or sludge pond, would be subject to CEQA analysis to determine, based on the type, size and intensity of development whether or not it would have a significant adverse impact on the environment. Currently, there are no plans and no need for any expansion or improvements to the existing wastewater treatment plant. The purpose of the project is to bank the land for possible future use. State Agency Review: The Ukiah City Council is the approval authority for the land acquisition project and therefore is the lead agency for the project. No other local or State agency has permit responsibilities or approval authority for the acquisition of the land. Therefore, there are no responsible agencies for the project. Additionally, because the project only involves land acquisition and no site preparation or construction activities, no natural resources would be affected by the project. Therefore review of the proposal by trustee agencies is not required. However, the proposed Initial Environmental Study and Negative Declaration were routed through the State Clearinghouse for review by State Agencies. At the conclusion of the review period, no comments were received from any State agencies. Public Review and Comment Period: June 13, 2011 through July 13, 2011 All written comments on the proposed Negative Declaration must be submitted no later than July 13, 2011 to Charley Stump, Director of Planning and Community Development, 300 Seminary Avenue, Ukiah. Failure to submit written comments by the July 13, 2011 deadline or to testify orally at the City Council hearing on July 20, 2011 may preclude raising an issue in a subsequent legal action to challenge the decision of the Agency or the City, if that issue was not raised and considered by the City and the Agency during the hearing or in response to written comments. The Ukiah City Council will discuss and consider acting on the proposed Negative Declaration on July 20, 2011 at 6:00 p.m. or soon thereafter as the matter can be heard. The discussion will include public comment and will be conducted in the Ukiah City Council chambers, 300 Seminary Avenue, Ukiah, CA. Revisions to Initial Environmental Study: After the public review and comment period ended on July 13, 2011, information was received regarding the results of a Phase 1 Environmental Study performed on the site. Trace amounts of DDT and its metabolites (DDD and DDE) were discovered on the site and attributed to past agricultural practices when it was lawful to use such substances as pesticides. The trace amounts were very low and well below all current screening levels used by the agencies regulating toxic substances. The Agencies indicated that no clean-up would be required unless soil grading/excavation were proposed as part of the project. The project is merely a land acquisition and no site disturbance, soil grading/excavation are proposed. Accordingly, no impacts and no mitigation measures were identified. Pursuant to CEQA guidelines Section 15073.5, it was determined that the Initial Environmental Study and Negative Declaration would not be re-circulated for review because information about the Phase 1 Study was added to the document, but no substantial revisions, new impacts, or new mitigation measures were identified or added to the document. Initial Environmental Study/Negative Declaration Wastewater Treatment Plant Land Acquisition Page 3 Potential Environmental Impacts: The environmental factors checked below were examined to determine if they would be affected by the proposed project. As indicated by the checklist and corresponding discussion on the following pages, none of these factors would be potential impacted by the proposed purchase and sale of land. ® Aesthetics ® Agricultural Resources ® Air Quality ® Biological Resources ® Hazards & Hazardous Materials ® Mineral Resources ® Public Services ® Utility Systems/Services ® Cultural Resources ® Hydrology / Water Quality ® Noise ® Recreation ® Geology / Soils ® Land Use / Planning ® Population / Housing ® Transportation/Traffic Determination: On the basis of this initial evaluation: ® I find that the proposed project COULD NOT have a significant effect on the environment, and a NEGATIVE DECLARATION will be prepared. ❑ I find that although the proposed project could have a significant effect on the environment there will not be a significant effect in this case because revisions in the project have been made by or agreed to by the project proponent. A MITIGATED NEGATIVE DECLARATION will be prepared. ❑ I find that the proposed project MAY have a significant effect on the environment, and an ENVIRONMENTAL IMPACT REPORT is required. ❑ I find that the proposed project MAY have a "potentially significant impact" or "potentially significant unless mitigated" impact on the environment, but at least one effect 1) has been adequately analyzed in an earlier document pursuant to applicable legal standards, and 2) has been addressed by mitigation measures based on the earlier analysis as described on attached sheets. An ENVIRONMENTAL IMPACT REPORT is required, but it must analyze only the effects that remain to be addressed. ❑ I find that although the proposed project could have a significant effect on the environment, because all potentially significant effects (a) have been analyzed adequately in an earlier EIR or NEGATIVE DECLARATION pursuant to applicable standards, and (b) have been avoided or mitigated pursuant to that earlier EIR or NEGATIVE DECLARATION, including revisions or mitigation measures that are imposed upon the proposed project, nothing further is required. Sig h/rninygSatunmd p, D' ector a Co munity Development Date: Initial Environmental Study/Negative Declaration / Wastewater Treatment Plant Land Acquisition Page 4 Initial Environmental Study/Negative Declaration Wastewater Treatment Plant Land Acquisition Page 5 164-/5 N i zao' The 43-acre parcel is bordered by the Russian River on the east and the NWP railroad tracks on the west. The Wastewater Treatment Plant is adjacent to the north Initial Environmental Study/Negative Declaration Wastewater Treatment Plant Land Acquisition Page 6 43-acre parcel to be acquired Initial Environmental Study/Negative Declaration Wastewater Treatment Plant Land Acquisition Page 7 Site Background The wastewater treatment plant is located on incorporated City-owned property southeast of the airport. It is adjacent to the Russian River (east) and includes three percolation ponds. Access to the site if off of South State Street via Plant Road and Taylor Drive. The Plant was constructed in 1958 with a capacity of 2.5 million gallons per day average dry weather flow and a peak wet weather flow of 10.5 million gallons per day with year-round discharge to the Russian River. State discharge requirements were modified in 1974 to allow only seasonal discharge into the Russian River. Since that time, wastewater effluent has been disposed of by a combination of evaporation and percolation from the evaporation/percolation ponds, and by reuse of treated effluent on site. In 1983, plant capacity was increased to 2.8 million gallons per day average dry weather flow with secondary treatment flow discharge to the Russian River. In 1986, a third percolation pond was constructed to the north of the two existing ponds. In 1989, an effluent pumping station was constructed on the site. In 1995, additional improvements were made, including a perimeter levee system that provided 100-year flood protection for the Plant. Beginning in 2005, the Plant underwent a number of improvements to (1) improve the liquid treatment, solids treatment, and advanced waste treatment processes and increase plant reliability to meet existing and possible future regulatory requirements; and (2) through these improvements, restore and increase plant capacity to accommodate planned growth within the City and unincorporated Ukiah Valley area. The proposed acquisition of 43 acres adjacent to the plant is intended to provide land for future expansion if it becomes necessary in the future. Currently, there is no need or plans to expand the plant. The purpose of the acquisition is to take advantage of the available land and bank it for possible future use. The parcel is located in the unincorporated area of the Ukiah Valley and is zoned AG40. It was most recently used as a pear orchard, but the trees were in steep decline and removed from the site a few years ago. The Russian River is adjacent to the east and the NWP railroad tracks are adjacent to the west. The land is currently fallow. Initial Environmental Study/Negative Declaration Wastewater Treatment Plant Land Acquisition Page 8 I. AESTHETICS Less Than Potentially Significant Less Than No Significant With Significant Impact Impact Mitigation Impact Would the project: Incorporated a) Have a substantial adverse effect on a scenic ❑ ❑ ❑ vista? b) Substantially damage scenic resources, including, but not limited to, trees, rock outcroppings, and ❑ ❑ ❑ historic buildings within a state scenic highway? c) Substantially degrade the existing visual character ❑ ❑ ❑ or quality of the site and its surroundings? d) Create a new source of substantial light or glare which would adversely affect day or nighttime ❑ ❑ ❑ views in the area? Discussion: The proposed acquisition of property would have a potentially significant adverse impact to aesthetic resources if it would adversely impact a scenic vista, damage a scenic resource, degrade the visual quality of its surroundings, or create substantial light and glare. Potential Impacts: The proposed purchase of the subject property would not adversely impact scenic resources or violate the criteria listed above because it involves land acquisition only, does not involve any site preparation, construction or development, and there are no plans or need to develop the site. Any future development would be subject to separate environmental review pursuant to the requirements of the California Environmental Quality Act. The actual size, scope and intensity of any future development project would be analyzed to determine if it would adversely impact aesthetic resources. It would be speculative and unreasonable to assume what size, type and intensity of development might be proposed on the site in the future. No impact. Mitigation Measures: None required. Impact Significance After Mitigation: N/A Initial Environmental Study/Negative Declaration Wastewater Treatment Plant Land Acquisition Page 9 2. AGRICULTURAL RESOURCES Less Than Potentially Significant Less Than No Significant With Significant Impact Impact Mitigation Impact Would the project: Incorporated a) Convert Prime Farmland, Unique Farmland, or Farmland of Statewide Importance (Farmland), as shown on the maps prepared pursuant to the ❑ El ❑ Farmland Mapping and Monitoring Program of the California Resources Agency, to non-agricultural use? b) Conflict with existing zoning for agricultural use, or ❑ ❑ ❑ a Williamson Act contract? c) Involve other changes in the existing environment which, due to their location or nature, could result ❑ El ❑ in conversion of Farmland, to non-agricultural use? Discussion: The proposed project would have a potentially significant adverse impact to agricultural resources if it would convert prime farmland to a non-agricultural use, conflict with a Williamson Act contract, or disrupt a viable and locally important agricultural use. Potential Impacts: The proposed purchase of the subject property would not adversely impact agricultural resources or violate the criteria listed above because it involves land acquisition only, no site preparation, construction or development is proposed, and the site is currently not in agricultural production. A declining pear orchard was removed from the site a few years ago and the property has been fallow ever since. There are no plans to develop the site. Any future development would be subject to separate environmental review pursuant to the requirements of the California Environmental Quality Act. The actual size, scope and intensity of any future development project would be analyzed to determine if it would adversely impact agricultural resources. It would be speculative and unreasonable to assume what size, type and intensity of development might be proposed on the site in the future. No impact. Mitigation Measures: None required Impact Significance After Mitigation: N/A Initial Environmental Study/Negative Declaration Wastewater Treatment Plant Land Acquisition Page 10 3. AIR QUALITY Where available, the significance criteria established by the applicable air quality management or air pollution control district may be relied upon to make the following determinations. Potentially Less Than Less Than Significant Significant Significant No Impact With Mitigation Impact Impact Would the project: Incorporated a) Conflict with or obstruct implementation of the ❑ ❑ ❑ applicable air quality plan? b) Violate any air quality standard or contribute substantially to an existing or projected air quality ❑ ❑ ❑ violation? c) Result in a cumulatively considerable net increase of any criteria pollutant for which the project region is non-attainment under an applicable federal or state ambient air quality ❑ ❑ ❑ standard (including releasing emissions which exceed quantitative thresholds for ozone precursors)? d) Expose sensitive receptors to substantial ❑ ❑ ❑ pollutant concentrations? e) Create objectionable odors affecting a ❑ ❑ ❑ substantial number of people? Discussion: The proposed project would have a potentially significant adverse impact to air quality if it would conflict with an air quality plan, violate any air quality standard, result in cumulative air quality impacts, expose people to air pollutants, or create significant odors. Potential Impacts: The proposed purchase of the subject property would not adversely impact air quality or violate the criteria listed above because no site preparation, grading, or actual construction is proposed or required. And there are no plans to develop the site. Any future development would be subject to separate environmental review pursuant to the requirements of the California Environmental Quality Act. The actual size, scope and intensity of any future development project would be analyzed to determine if it would adversely impact air quality. It would be speculative and unreasonable to assume what size, type and intensity of development might be proposed on the site in the future. No impact. Potential Impacts: None identified Mitigation Measures: None required Impact Significance After Mitigation: N/A Initial Environmental Study/Negative Declaration Wastewater Treatment Plant Land Acquisition Page 11 4. BIOLOGICAL RESOURCES Potentially Less Than Less Than Significant Significant Significant No Would the project: Impact With Incorporated Mitigation Impact Impact a) Have a substantial adverse effect, either directly or through habitat modifications, on any species identified as a candidate, sensitive, or special status ❑ ❑ ❑ species in local or regional plans, policies, or regulations, or by the California Department of Fish and Game or U.S. Fish and Wildlife Service? b) Have a substantial adverse effect on any riparian habitat or other sensitive natural community identified in local or regional plans, policies, or ❑ ❑ ❑ regulations or by the California Department of Fish and Game or US Fish and Wildlife Service? c) Have a substantial adverse effect on federally protected wetlands as defined by Section 404 of the Clean Water Act (including, but not limited to, ❑ ❑ ❑ marsh, vernal pool, coastal, etc.) through direct removal, filling, hydrological interruption, or other means? d) Interfere substantially with the movement of any native resident or migratory fish or wildlife species or with established native resident or migratory ❑ ❑ ❑ wildlife corridors, or impede the use of native wildlife nursery sites? e) Conflict with any local policies or ordinances protecting biological resources, such as a tree ❑ ❑ ❑ preservation policy or ordinance? f) Conflict with the provisions of an adopted Habitat Conservation Plan, Natural Community ❑ ❑ ❑ Conservation Plan, or other approved local, regional, or state habitat conservation plan? Discussion: The proposed project would have adverse impacts on biological resources if it disrupted or altered animal and plant habitats, disrupted animal migratory patterns, impacted wetlands, or conflicted with any habitat conservation plans. Potential Impacts: The proposed purchase of the subject property would not adversely impact biological resources or violated the criteria listed above because no site preparation, grading, or actual construction is proposed or required. There are no plans to develop the site. Any future development would be subject to separate environmental review pursuant to the requirements of the California Environmental Quality Act. The actual size, scope and intensity of any future development project would be analyzed to determine if it would adversely impact biological resources. It would be speculative and unreasonable to assume what size, type and intensity of development might be proposed on the site in the future. No impact. Initial Environmental Study/Negative Declaration Wastewater Treatment Plant Land Acquisition Page 12 Mitigation Measures: None required Impact Significance After Mitigation: N/A 5. CULTURAL RESOURCES Less Than Potentially Significant Less Than No Significant With Significant Impact Impact Mitigation Impact Would the project: Incorporated a) Cause a substantial adverse change in the significance of a historical resource as defined in ❑ ❑ ❑ 15064.5? b) Cause a substantial adverse change in the significance of an archaeological resource pursuant ❑ ❑ ❑ to 15064.5? c) Directly or indirectly destroy a unique paleontological resource or site or unique geologic ❑ ❑ ❑ feature? d) Disturb any human remains, including those ❑ ❑ ❑ interred outside of formal cemeteries? Discussion: The proposed project would adversely impact cultural resources if changed, destroyed or disturbed any historic or pre-historic resources. Figure V.3-DD contained in the Historic and Archaeological Resources Element in the Ukiah General Plan indicates areas of high sensitivity for cultural resources. The subject property is not shown as an area of high sensitivity for historic or archaeological resources. Potential Impacts: The proposed purchase and sale of the subject property would not adversely impact cultural resources or violate the criteria listed above because no site preparation, grading, or actual construction is proposed or required. There are no plans to develop the site. Any future development would be subject to separate environmental review pursuant to the requirements of the California Environmental Quality Act. The actual size, scope and intensity of any future development project would be analyzed to determine if it would adversely impact cultural resources. It would be speculative and unreasonable to assume what size, type and intensity of development might be proposed on the site in the future. No impact. Mitigation Measure: None required Impact Significance After Mitigation: N/A Initial Environmental Study/Negative Declaration Wastewater Treatment Plant Land Acquisition Page 13 6. GEOLOGY AND SOILS Less Than Potentially Significant Less Than No Significant Impact with Mitigation Significant Impact Impact Would the project: Incorporated a) Expose people or structures to potential substantial adverse effects, including the risk of loss, injury, or ❑ ❑ ❑ death involving: i) Rupture of a known earthquake fault, as delineated on the most recent Alquist-Priolo Earthquake Fault Zoning Map issued by the State Geologist for the area or based on other ❑ ❑ ❑ substantial evidence of a known fault? Refer to Division of Mines and Geology Special Publication 42. ii) Strong seismic ground shaking? ❑ ❑ ❑ iii) Seismic-related ground failure, including ❑ ❑ ❑ liquefaction? iv) Landslides? ❑ ❑ ❑ b) Result in substantial soil erosion or the loss of ❑ ❑ ❑ topsoil? c) Be located on a geologic unit or soil that is unstable, or that would become unstable as a result of the project, and potentially result in on- or ❑ ❑ ❑ off-site landslide, lateral spreading, subsidence, liquefaction or collapse? d) Be located on expansive soil, as defined in Table 18-1-B of the Uniform Building Code (1994), ❑ ❑ ❑ creating substantial risks to life or property? e) Have soils incapable of adequately supporting the use of septic tanks or alternative wastewater ❑ ❑ ❑ disposal systems where sewers are not available for the disposal of wastewater? Discussion: The City of Ukiah is located within the Russian River Valley, which is within the northern portion of the Coast Ranges of California, which trend to the northwest. The mountain range that lies west of the Russian River Valley and extends to the Pacific Coast is commonly called the Mendocino Range. The Ukiah Valley is a subarea of the Russian River Valley. The Ukiah Valley is approximately 22 miles long, averages 3 miles wide, and occupies an area approximately 65 square miles. The altitude of the valley floor ranges from approximately 500 feet at the southern end to approximately 700 feet in the northern end. The valley floor at the City of Ukiah is approximately 600 feet above sea level. Initial Environmental Study/Negative Declaration Wastewater Treatment Plant Land Acquisition Page 14 The proposed project would adversely impact geological and soil resources if it exposed people to seismic risk, liquefaction, or soil/slope failures and erosion. Potential Impacts: The purchase of the property would not in and of itself result in a physical change in or impacts to the geology or soils of the property, because it does not involve any site preparation, construction, or development activities. There are no plans to develop the site. Any future development would be subject to separate environmental review pursuant to the requirements of the California Environmental Quality Act. The actual size, scope and intensity of any future development project would be analyzed to determine if it would adversely impact geological and soil resources. It would be speculative and unreasonable to assume what size, type and intensity of development might be proposed on the site in the future. No impact. Mitigation Measures: None required. Impact Significance After Mitigation: N/A 7. HAZARDS & HAZARDOUS MATERIALS Less Than Potentially Significant Less Than No Significant With Mitigation Significant Impact Would the project: Impact Incorporated Impact a) Create a significant hazard to the public or the environment through the routine transport, use, or ❑ ❑ ❑ disposal of hazardous materials? b) Create a significant hazard to the public or the environment through reasonably foreseeable upset ❑ ❑ ❑ and accident conditions involving the release of hazardous materials into the environment? c) Emit hazardous emissions or handle hazardous or acutely hazardous materials, substances, or waste ❑ ❑ ❑ within one-quarter mile of an existing or proposed school? d) Be located on a site which is included on a list of hazardous materials sites compiled pursuant to Government Code Section 65962.5 and, as a ❑ ❑ ❑ result, would it create a significant hazard to the public or the environment? e) For a project located within an airport land use plan or, where such a plan has not been adopted, within two miles of a public airport or public use airport, ❑ ❑ ❑ would the project result in a safety hazard for people residing or working in the project area? f) For a project within the vicinity of a private airstrip, would the project result in a safety hazard for ❑ ❑ ❑ people residing or working in the project area? Initial Environmental Study/Negative Declaration Wastewater Treatment Plant Land Acquisition Page 15 7. HAZARDS & HAZARDOUS MATERIALS Less Than Potentially Significant Less Than No Significant With Mitigation Significant Impact Would the project: Impact Incorporated Impact g) Impair implementation of or physically interfere with an adopted emergency response plan or ❑ ❑ ❑ emergency evacuation plan? h) Expose people or structures to a significant risk of loss, injury or death involving wildland fires, including where wildlands are adjacent to ❑ ❑ ❑ urbanized areas or where residences are intermixed with wildlands? Discussion: Ukiah is generally regarded as a healthy City with relatively clean air and water. While there are some known toxic "spots" resulting from the past storage of hazardous materials underground, the City is not regarded as having a highly contaminated environment. The project would result in hazardous and hazardous materials impacts if it exposed people to hazardous materials or placed them into hazardous situations. In June of 2011, the City contracted with LACO Associates to perform a Phase 1 Environmental analysis of the site as part of its due diligence leading to the possible purchase of the site. The Phase 1 study detected the chemical substance DDT and its metabolites (DDE and DDD). DDT was a common pesticide used on agricultural property in the past. However, the concentration of the substances was very low and well below all screening levels of regulatory agencies. Chemical Max. Concentration (mg/kg) CHHSL (mg/kg) ESL (industrial/shallow/gw use (m /kg) CA Hazardous Waste TTLC (mg/kg) DDD 0.0058 9.0 10 1.0 DDE 0.029 6.3 4.0 1.0 DDT 0.0082 6.3 4.0 1.0 CHHSL = Department of Toxic Substance Control California Human Health Screen levels ESL = San Francisco Bay RWQCB Environmental Screening Levels The California Regional Water Quality Control Board staff indicated to LACO Associates that if the property were to remain in agricultural use, then no clean-up actions would be imposed. However, if soil grading/excavation for development or a land use change takes place, then the soil with detectable DDT may be regulated and subject to clean-up. Potential Impacts: The purchase of the property would not involve site disturbance, grading, excavation, construction or development, and therefore would not directly expose people to hazardous material or put them in hazardous circumstances. There are no plans to develop the site if the purchase occurs, and it is likely that the property would remain fallow for many years. Any future development would be subject to the requirements of the California Environmental Quality Act, and an Initial Environmental Study would be required to determine if future development would expose people to hazardous substances. As indicated above, the DDT Initial Environmental Study/Negative Declaration Wastewater Treatment Plant Land Acquisition Page 16 issue would be addressed by the applicable regulatory agencies at that time. At this time, it is premature and would be speculative and unreasonable to assume what size, scale, and intensity of development would possible be proposed in the future, and because no soil grading or excavation is proposed, there would be no impact. Mitigation Measures: No mitigation is required. Impact Significance After Mitigation: N/A 8. HYDROLOGY AND WATER QUALITY Less Than Potentially Significant Less Than No Significant With Mitigation Significant Impact Would the project: Impact Incorporated Impact a) Violate any water quality standards or waste ❑ ® ❑ ❑ discharge requirements? b) Substantially deplete groundwater supplies or interfere substantially with groundwater recharge such that there would be a net deficit in aquifer volume or a lowering of the local groundwater ❑ ❑ ❑ table level (e.g., the production rate of pre-existing nearby wells would drop to a level which would not support existing land uses or planned uses for which permits have been granted)? c) Substantially alter the existing drainage pattern of the site or area, including through the alteration of the course of a stream or river, in a manner which ❑ ❑ ❑ would result in substantial erosion or siltation on- or off-site? d) Substantially alter the existing drainage pattern of the site or area, including through the alteration of the course of a stream or river, or substantially ❑ ❑ ❑ increase the rate or amount of surface runoff in a manner which would result in flooding on- or e) Create or contribute runoff water which would exceed the capacity of existing or planned ❑ ❑ ❑ stormwater drainage systems or provide substantial additional sources of polluted runoff? f) Otherwise substantially degrade water quality? ❑ ❑ ❑ g) Place housing within a 100-year flood hazard area as mapped on a federal Flood Hazard Boundary ❑ ❑ ❑ or Flood Insurance Rate Map or other flood hazard delineation map? (Source: FEMA) Initial Environmental Study/Negative Declaration Wastewater Treatment Plant Land Acquisition Page 17 8. HYDROLOGY AND WATER QUALITY Less Than Potentially Significant Less Than No Significant With Mitigation Significant Impact Would the project: Impact Incorporated Impact h) Place within a 100-year flood hazard area structures which would impede or redirect flood ❑ ❑ ❑ flows? i) Expose people or structures to a significant risk of loss, injury or death involving flooding, including ❑ ❑ ❑ flooding as a result of the failure of a levee or dam? j) Inundation by seiche, tsunami, or mudflow? ❑ ❑ ❑ Discussion: The subject property is located adjacent to the Russian River and lies within both the 100-year and 500-year flood zones. The project would adversely impact hydrology and water quality if it violated water quality standards, disrupted drainage patterns, involved placing houses within the 100-yerar flood zone, or exposed people to significant risk of loss, injury or death involving flooding. Potential Impacts: The purchase of the property would not directly cause increased flooding, redirect flood flows, or expose people to flood hazards, because no site preparation, construction or development is proposed. There are no plans to develop the site. Additionally, any future development would be subject to the requirements of the California Environmental Quality Act, and an Initial Environmental Study would be required to determine if future development would adversely impact hydrology and water quality, violate water quality standards, disrupted drainage patterns, involve placing houses within the 100-yerar flood zone, or expose people to significant risk of loss, injury or death involving flooding. At this time, it is premature and would be speculative and unreasonable to assume what size, scale, type, and intensity of any future development. No impact. Mitigation Measures: N/A Impact Significance After Mitigation: N/A 9. LAND USE AND PLANNING Potentially Less Than Less Than Significant Significant with Mitigation Significant No Impact Impact Incorporated Impact Would the project: a) Physically divide an established community? ❑ ❑ ❑ Initial Environmental Study/Negative Declaration Wastewater Treatment Plant Land Acquisition Page 18 9. LAND USE AND PLANNING Potentially Less Than Less Than Significant Significant Significant No Impact Impact With Mitigation Impact Incorporated Would the project: b) Conflict with any applicable land use plan, policy, or regulation of an agency with jurisdiction over the project (including, but not limited to the general ❑ ❑ ❑ plan, specific plan, local coastal program, or zoning ordinance) adopted for the purpose of avoiding or mitigating an environmental effect? c) Conflict with any applicable habitat conservation ❑ ❑ ❑ plan or natural community conservation plan? Discussion: If the proposed project were to conflict with any locally adopted planning documents, policies, or strategic planning goals of the City, it would be regarded as a potentially significant adverse impact. Potential Impacts: The proposed purchase of the subject property would not conflict with any goals or policies contained in the Ukiah General Plan because the purpose of the purchase of the site is to land bank property for possible future use if needed. General Plan Policy CF-6.1 states "Maintain an adequate level of service in the City's sewage collection, treatment and disposal system to meet the needs of existing and projected development and all State and Federal regulations." The acquisition of the 43 acre parcel for possible future use associated with the wastewater treatment plant is consistent with this policy. Currently, there are no plans to develop the site. Any future development would be subject to separate environmental review pursuant to the requirements of the California Environmental Quality Act. The actual size, scope and intensity of any future development project would be analyzed to determine if it would adversely impact land use planning goals and policies. It would be speculative and unreasonable to assume what size, type and intensity of development might be proposed on the site in the future. No impact. Mitigation Measures: None required Impact Significance After Mitigation: N/A 10. MINERAL RESOURCES Less Than Potentially Significant With Less Than No Significant Mitigation Significant Impact Would the project: Impact Incorporated Impact a) Result in the loss of availability of a known mineral resource that would be of value to the region and ❑ ❑ ❑ the residents of the state? b) Result in the loss of availability of a locally ❑ ❑ ❑ Initial Environmental Study/Negative Declaration Wastewater Treatment Plant Land Acquisition Page 19 10. MINERAL RESOURCES Less Than Potentially Significant With Less Than No Significant Mitigation Significant Impact Impact Incorporated Impact Would the Droiect: important mineral resource recovery site delineated on a local general plan, specific plan or other land use plan? Discussion: If the proposed project were to result in the loss of mineral resources or violate any of the criteria listed above, it would be regarded as a potentially significant adverse impact. Potential Impacts: The proposed purchase of the subject property would not adversely impact mineral resources because no site preparation, construction or development is proposed. Moreover, resource material maintained by the Ukiah Department of Planning and Community Development reveals that no mapped or important mineral resources exist on or in close proximity to the site. There are no plans to develop the site. Any future development would be subject to separate environmental review pursuant to the requirements of the California Environmental Quality Act. The actual size, scope and intensity of any future development project would be analyzed to determine if it would adversely impact mineral resources. It would be speculative and unreasonable to assume what size, type and intensity of development might be proposed on the site in the future. Mitigation Measures: None required Impact Significance After Mitigation: N/A 11. NOISE Less Than Potentially Significant With Less Than No Significant Mitigation Significant Impact Would the project result in: Impact Incorporated Impact a) Exposure of persons to or generation of noise levels in excess of standards established in the ❑ ❑ ❑ local general plan or noise ordinance, or applicable standards of other agencies? b) Exposure of persons to or generation of excessive groundborne vibration or groundborne noise ❑ ❑ ❑ levels? c) A substantial permanent increase in ambient noise levels in the project vicinity above levels ❑ ❑ ❑ existing without the project? d) A substantial temporary or periodic increase in ambient noise levels in the project vicinity above ❑ ❑ ❑ levels existing without the project? Initial Environmental Study/Negative Declaration Wastewater Treatment Plant Land Acquisition Page 20 11. NOISE Potentially Less Than Less Than Significant Significant With Significant No Impact Mitigation Impact Impact Would the project result in: Incorporated e) For a project located within an airport land use plan or, where such a plan has not been adopted, within two miles of a public airport or public use ❑ El ❑ airport, would the project expose people residing or working in the project area to excessive noise levels? f) For a project within the vicinity of a private airstrip, would the project expose people residing or E] El ❑ working in the project area to excessive noise levels? Discussion: The project would have a significant adverse impact if it created very loud noises, noises that violated the local noise statutes contained in the Ukiah City Code, noises that conflicted with the General Plan goals and polices for noise, or violated any of the criteria listed above. Potential Impacts: The proposed purchase of the subject property would not result in very loud noises or create any noise at all because no site preparation, construction or development is proposed, and the current fallow use of the property would not change as a result of the purchase of the property. There are no plans to develop the site. Any future development would be subject to separate environmental review pursuant to the requirements of the California Environmental Quality Act. The actual size, scope and intensity of any future development project would be analyzed to determine if it would create loud noise that would violate the City Code or General Plan. It would be speculative and unreasonable to assume what size, type and intensity of development might be proposed on the site in the future. Mitigation Measures: None required Impact Significance After Mitigation: N/A Initial Environmental Study/Negative Declaration Wastewater Treatment Plant Land Acquisition Page 21 12. POPULATION AND HOUSING Less Than Potentially Significant With Less Than No Significant Mitigation Significant Impact Impact Incorporated Impact Would the project: a) Induce substantial population growth in an area, either directly (for example, by proposing new homes and businesses) or indirectly (for example, ❑ ❑ ❑ through extension of roads or other infrastructure)? b) Displace substantial numbers of existing housing, necessitating the construction of replacement ❑ ❑ ❑ housing elsewhere? c) Displace substantial numbers of people, necessitating the construction of replacement ❑ ❑ ❑ housing elsewhere? Discussion: The proposed project would adversely impact the local population or housing stock if it induced substantial population growth or displace people from their homes. Potential Impacts: The proposed purchase of the subject property would not adversely impact population and housing because no site preparation, demolition, construction or development is proposed. There are no plans to develop the site. Any future development would be subject to separate environmental review pursuant to the requirements of the California Environmental Quality Act. The actual size, scope and intensity of any future development project would be analyzed to determine if it would adversely impact the local population and the local housing stock. It would be speculative and unreasonable to assume what size, type and intensity of development might be proposed on the site in the future. Mitigation Measures: None required Impact Significance After Mitigation: N/A 13. PUBLIC SERVICES Would the project result in: Substantial adverse physical impacts associated with the provision of new or physically altered governmental facilities, need for new or physically altered governmental facilities, the construction of which could cause significant environmental impacts, in order to maintain acceptable service ratios, response times or other performance objectives for any of the public services: Potentially Less Than Less Than Significant Significant Significant No Impact Impact With Mitigation Impact Incorporated Initial Environmental Study/Negative Declaration Wastewater Treatment Plant Land Acquisition Page 22 13. PUBLIC SERVICES Less Than Potentially Significant Less Than No Significant With Mitigation Significant Impact Would the project result in: Impact Incorporated Impact a) Fire protection? ❑ ❑ ❑ b) Police protection? ❑ ❑ ❑ C) Schools? ❑ ❑ ❑ d) Parks? ❑ ❑ ❑ e) Other public facilities? ❑ ❑ ❑ Discussion: The project would cause significant adverse impacts to public services if it resulted in a requirement for increase public service facilities or staffing. Potential Impacts: The proposed purchase of the subject property would not adversely impact public services resources because no site preparation, construction or development is proposed, and no immediate change in the use of the property would result. There are no plans to develop the site. Any future development would be subject to separate environmental review pursuant to the requirements of the California Environmental Quality Act. The actual size, scope and intensity of any future development project would be analyzed to determine if it would adversely impact public services. It would be speculative and unreasonable to assume what size, type and intensity of development might be proposed on the site in the future. Mitigation Measures: None required Impact Significance After Mitigation: N/A 14. RECREATION Less Than Potentially Significant LessThan No Significant With Mitigation Significant Impact Would the project: Impact Incorporated Impact a) Increase the use of existing neighborhood and regional parks or other recreational facilities such ❑ ❑ ❑ that substantial physical deterioration of the facility would occur or be accelerated? b) Does the project include recreational facilities or require the construction or expansion of ❑ ❑ ❑ recreational facilities which might have an adverse physical effect on the environment? Initial Environmental Study/Negative Declaration Wastewater Treatment Plant Land Acquisition Page 23 Discussion: If the project results in an increase in the use or need for recreation facilities or in the need for additional recreation personnel to care for or provide recreation facilities and services, it would constitute a significant adverse impact on local recreation. Potential Impacts: The proposed purchase of the subject property would not adversely impact recreation resources because no site preparation, construction or development is proposed, and no increase in the local population/recreational needs would result. There are no plans to develop the site. Any future development would be subject to separate environmental review pursuant to the requirements of the California Environmental Quality Act. The actual size, scope and intensity of any future development project would be analyzed to determine if it would adversely impact recreational resources. It would be speculative and unreasonable to assume what size, type and intensity of development might be proposed on the site in the future. Mitigation Measures: None required Impact Significance After Mitigation: N/A 15. TRANSPORTATION/TRAFFIC Less Than Potentially Significant Less Than No Significant With Mitigation Significant Impact Would the project: Impact Incorporated Impact a) Cause an increase in traffic which is substantial in relation to the existing traffic load and capacity of the street system (i.e., result in a substantial ❑ ❑ ❑ increase in either the number of vehicle trips, the volume to capacity ratio on roads, or congestion at intersections)? b) Exceed, either individually or cumulatively, a level of service standard established by the county ❑ ❑ ❑ congestion management agency for designated roads or highways? c) Result in a change in air traffic patterns, including either an increase in traffic levels or a change in ❑ ❑ location that result in substantial safety risks? d) Substantially increase hazards due to a design feature (e.g., sharp curves or dangerous ❑ ❑ ❑ intersections) or incompatible uses (e.g., farm equipment)? e) Result in inadequate emergency access? ❑ ❑ ❑ f) Result in inadequate parking capacity? ❑ ❑ ❑ Initial Environmental Study/Negative Declaration Wastewater Treatment Plant Land Acquisition Page 24 15. TRANSPORTATION/TRAFFIC Less Than Potentially Significant Less Than No Significant Impact with Mitigation Significant Impact Impact Would the project: Incorporated g) Conflict with adopted policies, plans, or programs supporting alternative transportation (e.g., bus ❑ ❑ ❑ turnouts, bicycle racks)? Discussion: The project would have a significant adverse impact on transportation facilities and services if it resulted in a substantial increase in vehicle trips to and from the site, altered substantially streets and roadways, significant parking issues, or conflict with local General Plan goals and policies for transportation and traffic. Potential Impacts: The proposed purchase of the subject property would not adversely impact transportation facilities and services or traffic congestion and safety because no site preparation, construction or development is proposed and no immediate change in the use of the property would result. There are no plans to develop the site. Any future development would be subject to separate environmental review pursuant to the requirements of the California Environmental Quality Act. The actual size, scope and intensity of any future development project would be analyzed to determine if it would adversely impact transportation/traffic. It would be speculative and unreasonable to assume what size, type and intensity of development might be proposed on the site in the future. Mitigation Measures: None required Impact Significance After Mitigation: N/A 16. UTILITIES AND SERVICE SYSTEMS Less Than Potentially Significant Less Than No Significant With Mitigation Significant Impact Would the project: Impact Incorporated Impact a) Exceed wastewater treatment requirements of the ❑ ❑ ❑ applicable Regional Water Quality Control Board? b) Require or result in the construction of new water or wastewater treatment facilities or expansion of ❑ ❑ ❑ existing facilities, the construction of which could cause significant environmental effects? c) Require or result in the construction of new storm water drainage facilities or expansion of existing ❑ ❑ ❑ facilities, the construction of which could cause significant environmental effects? Initial Environmental Study/Negative Declaration Wastewater Treatment Plant Land Acquisition Page 25 16. UTILITIES AND SERVICE SYSTEMS Less Than Potentially Significant Less Than No Significant With Mitigation Significant Impact Impact Incorporated Impact Would the project: d) Have sufficient water supplies available to serve the project from existing entitlements and ❑ ❑ ❑ resources, or are new or expanded entitlements needed? e) Result in a determination by the wastewater treatment provider which serves or may serve the project that it has adequate capacity to serve the ❑ ❑ ❑ project's projected demand in addition to the provider's existing commitments? f) Be served by a landfill with sufficient permitted capacity to accommodate the project's solid waste ❑ ❑ ❑ disposal needs? g) Comply with federal, state, and local statutes and ❑ ❑ ❑ regulations related to solid waste? Discussion: A project would have a potentially significant impact on utility systems if it resulted in new construction that would substantial diminish the capacity of a wastewater treatment facility, substantially increase the need for water resources, or require the increased capacity of any utility system. Potential Impacts: The proposed purchase of the subject property would not adversely impact utility systems because no site preparation, demolition, construction or development is proposed. There are no plans to develop the site. Any future development would be subject to separate environmental review pursuant to the requirements of the California Environmental Quality Act. The actual size, scope and intensity of any future development project would be analyzed to determine if it would adversely impact local or regional utility systems. It would be speculative and unreasonable to assume what size, type and intensity of development might be proposed on the site in the future. Mitigation Measures: None required Impact Significance After Mitigation: N/A 17. CLIMATE CHANGE Less Than Potentially Significant Less Than No Significant With Mitigation Significant Impact Impact Impact Would the project: Incorporated a) Directly contribute to greenhouse gas emissions? ❑ ❑ ® ❑ Initial Environmental Study/Negative Declaration Wastewater Treatment Plant Land Acquisition Page 26 17. CLIMATE CHANGE Less Than Potentially Significant Less Than No Significant Impact with Mitigation Significant Impact Impact Would the project: Incorporated b) Contribute cumulatively to greenhouse gas El ❑ ® El emissions? Discussion of Greenhouse Gas Emissions The purchase of the property would not directly result in an increase in greenhouse gas emissions because no site preparation, construction or development is proposed, it would not change the existing General Plan designation or zoning classification, and the use of the property would not change. There are no plans to develop the site. Any future development would be subject to separate environmental review pursuant to the requirements of the California Environmental Quality Act. The actual size, scope and intensity of any future development project would be analyzed to determine if it would result in an increase in greenhouse gas emissions. Accordingly, it is concluded that the proposed property acquisition in and of itself would not alter the way future development would contribute or not contribute to climate change/global warming. No impact. MITIGATION MONITORING AND REPORTING: AB 3180 requires all public agencies to adopt a monitoring and reporting program whenever they adopt an EIR or "Mitigated Negative Declaration." This Initial Environmental Study does not identify any potentially significant adverse impacts resulting from the proposed purchase and sale of property, and therefore no mitigation measures are required. Initial Environmental Study/Negative Declaration Wastewater Treatment Plant Land Acquisition Page 27 MANDATORY FINDINGS OF SIGNIFICANCE Potentially Less Than Less Than No Significant Significant With Significant Impact Impact Mitigation Impact Does the project: Incorporated a) Have the potential to degrade the quality of the environment, substantially reduce the habitat of a fish or wildlife species, cause a fish or wildlife population to drop below self-sustaining levels, threaten to eliminate a plant or animal community, ❑ ❑ ❑ reduce the number or restrict the range of a rare or endangered plant or animal or eliminate important examples of the major periods of California history or prehistory? b) Have impacts that are individually limited, but cumulatively considerable? ("Cumulatively considerable" means that the incremental effects of a project are considerable when viewed in ❑ ❑ ❑ connection with the effects of past projects, the effects of other current projects, and the effects of probable future projects)? c) Have environmental effects which will cause substantial adverse effects on human beings, ❑ ❑ ❑ either directly or indirectly? Initial Environmental Study/Negative Declaration Wastewater Treatment Plant Land Acquisition Page 28 RESOURCES USED TO PREPARE THIS INITIAL ENVIRONMENTAL STUDY 1. City of Ukiah General Plan and EIR, 1995, 2011 (Draft Housing Element Update) 2. City of Ukiah Redevelopment Plan and EIR, 1989 3. Ukiah Municipal Airport Master Plan Report, 1996 4. City of Ukiah Citywide Traffic Circulation Study, prepared by Omni Means Engineers and Planners, February 27, 2007 5. Soil Survey of Mendocino County, Eastern Part, and Trinity County, Southwestern Part, California, U.S. Department of Agriculture - Soil Conservation Service, January, 1991. 6. A History of the Salmonid Decline in the Russian River, Steiner Environmental Consulting, August, 1996. 7. U.S.G.S. Topographical Map, Ukiah Quadrangle, 1958 (photo inspected 1975). 8. City Air Photographs, 2006 9. Greenhouse Gas, Climate Change, and Energy, National Energy Information Center (NEIC) - Energy Information Administration). 10. Ukiah Redevelopment Agency 5-year Implementation Plan 2007-2012 11. Mendocino County Economic and Demographic Profile, 2010 12. City of Ukiah Historical and Architectural Resources Inventory Report, 1984-85, 1999 13. Wastewater Treatment Plan Improvement Project Initial Environmental Study and Mitigated Negative Declaration, Scheidegger & Associates, 2004. 14. Email regarding Phase 1 Environmental Study Test Results, Christopher J. Watt, LACO Associates to City Staff, dated July 8, 2011. 15. Laboratory Results, Phase 1 Environmental Study, KIFF Analytical LLC, June 30, 2011. Initial Environmental Study/Negative Declaration Wastewater Treatment Plant Land Acquisition Page 29 cil*-h Planning and Community Development NEGATIVE DECLARATION Ukiah Wastewater Treatment Plant Land Acquisition PROJECT: Ukiah Wastewater Treatment Plan Land Acquisition DATE: June 10, 2011 PROJECT PROPONENT: City of Ukiah Department of Public Works PROJECT LOCATION: The wastewater treatment plant is located on an island of land in the southernmost portion of the City limits. It is adjacent to the Russian River and includes three percolation ponds. Access to the site if off of South State Street via Plant Road. The parcel to be acquired is located adjacent to and south of percolation pond number 2. PROJECT DESCRIPTION: The City is proposing to purchase a 43 acre parcel south of and adjacent to the existing wastewater treatment plant. The purpose of the acquisition is to have land adjacent to the treatment plant, bank it, and have it available for future use if and when a need arises. Currently, there are no plans and no need to expand the facility. The property is located at 3495 Taylor Drive, Ukiah, CA (APN 184-150-01). ENVIRONMENTAL SETTING: The existing wastewater treatment plant and the parcel to be acquired are located adjacent to and west of the Russian River. Agricultural lands are adjacent to the south and north, and the NWP railroad tracks, Highway 101, and industrial type development are located to the west. FINDINGS SUPPORTING A NEGATIVE DECLARATION: 1. Based upon the analysis, findings and conclusions contained in the Initial Environmental Study, the project does not have the potential to degrade the quality of the local or regional environment; 2. Based upon the analysis, findings and conclusions contained in the Initial Environmental Study, the project will not result in short-term impacts that will create a disadvantage to long-term environmental goals; 3. Based upon the analysis, findings and conclusions contained in the Initial Environmental Study, the project will not result in impacts that are individually limited, but cumulatively considerable; and 4. Based upon the analysis, findings and conclusions contained in the Initial Environmental Study, the project will not result in environmental impacts that will cause substantial adverse effects on human beings, either directly or indirectly. 5. The Initial Environmental Study examined areas of potential impacts and based on the conclusions reached in the Initial Environmental Study, it has been determined that the acquisition of land in and of itself would not have significant adverse impacts on the environment because it only involves land acquisition and no site preparation, construction or development is proposed, contemplated, planned, or needed. Initial Environmental Study/Negative Declaration Wastewater Treatment Plant Land Acquisition Page 30 STATEMENT OF DECLARATION: After appraisal of the possible impacts of this project, the City of Ukiah has determined that the project will not have a significant effect on the environment, and further, that this Negative Declaration constitutes compliance with the requirements for environmental review and analysis required by the California Environmental Quality Act. The Initial Environmental Study and all resources information used to perform the initial environmental analysis may be reviewed at the City of Ukiah Department of Planning and Community Development, Ukiah Civic Center, 300 Seminary Avenue, Ukiah, California. 7-1-1-11 Date Plann!4 and Community Development City of Ukiah Initial Environmental Study/Negative Declaration Wastewater Treatment Plant Land Acquisition Page 31 City of Uk- ah ITEM NO.: 12a MEETING DATE: August 3, 2011 AGENDA SUMMARY REPORT SUBJECT: APPROVAL OF THE ACQUISITION OF THE PROPERTY ADJACENT TO THE WASTE WATER TREATMENT PLANT AT 3495 TAYLOR DRIVE; AUTHORIZE THE CITY MANAGER TO NEGOTIATE AND EXECUTE RELATED AGREEMENTS INCLUDING CLOSING DOCUMENTS AND AGREEMENT WITH THE UKIAH VALLEY SANITATION DISTRICT; AND APPROVAL OF CORRESPONDING BUDGET AMENDMENT UTILIZING FUNDS FROM THE 614 JOINT CITY/UVSD SEWER CAPITAL PROJECTS FUND Background: On May 4, 2011, the City Council authorized the City Manager to negotiate terms and price for the 43 acres of property located at 3495 Taylor Drive adjacent to the Waste Water Treatment Plant (Attachment #1: Purchase Agreement; Attachment # 2: Site Map). On May 18, 2011, the City Council approved the property acquisition conditioned on the Ukiah Valley Sanitation District's financial participation. On May 19, 2011, the UVSD Board agreed to financially participate in the acquisition of the property and subsequently approved the draft joint property agreement (Attachment #3). A Phase I Environmental along with sampling was completed by LACO and RAU was contracted to complete an ALTA Survey. A public hearing to satisfy the California Environment Quality Act requirement is scheduled under a separate report for the August 3rd meeting. The negative declaration document must be approved prior to the Council considering the actions identified in this report. Discussion: Contingent on the approval of the CEQA document, staff requests the City Council approve the final acquisition of the property and authorize the City Manager to negotiate and execute all related agreements including closing documents and the agreement with UVSD regarding real property acquisition. The expenditure for this property will be paid from the Joint City/UVSD Sewer Capital Projects Fund 614 in the approximate amount of $357,565. The City's portion is approximately $187,721.63. Fiscal Impact: Budgeted FY 11/12 ❑X New Appropriation Amount Budgeted Source of Funds (title and $ 78,750 614, Study of Recycling-City $0 614 Fund Balance-City $0 614 Fund Balance- District Not Applicable 1XI Budget Amendment Required Expenditure Account Expenditure Amount 614.3510.810.001 $78,750 614.3510.810.001 $108,971.63 614.3510.811.001 $169,843.37 Recommended Action(s): 1) Approve the acquisition of the property adjacent to the Waste Water Treatment Plant at 3495 Taylor Drive; 2) Authorize the City Manager to negotiate and execute related agreements including closing documents and the agreement with UVSD; and 3) Approve the corresponding budget amendments utilizing funds from the 614 Joint City/UVSD Capital Projects Fund. Alternative Council Option(s): Do not approve the acquisition and provide direction to staff Citizens advised: N/A Requested by: N/A Prepared by: Jarod Thiele, Public Works Administration Coordinated with: Jane Chambers, City Manager, Sage Sangiacomo, Assistant City Manager, Tim Eriksen, Director of Public Works/City Engineer, and Rick Kennedy, District Manager UVSD Attachments: 1. Purchase Agreement 2. Site Map 3. Agreement with UVSD regarding real property acquisition Approved:A Ja~ ee Chaibers, City Manager Dodu,~ign Envelope ID: 4608FC4C-B48F-4C80-9322-3ADCF5593057 Affaichment # CALIFORNIA VACANT LAND PURCHASE AGREEMENT ASSOCIATION AND JOINT ESCROW INSTRUCTIONS -Vm OF R B A L T O R S ---(CJ1:R: Forth VCPA; Revised 4H 0) - - - Man 18, 20II 1. OFFER: Date A. THIS IS AN OFFER FROM The City of Ukiah ("Buyer") B. THE REAL PROPERTY TO BE ACQUIRED is described as 3495 Taylor Drs w , Assessor's Parcel No(s). 184-190-01 situated I Ukiah , County of Mendocino , California, ("property"). C. THE PURCHASE PRICE offered is _ThZ" irhmdred Forty Thousand tl (Dollars $ 340.000.00 ) D. CLOSE OF ESCROW shall occur on (date) (or❑ 100 Days After Acceptance), 2. AGENCY: A. POTENTIALLY COMPETING BUYERS AND SELLERS: Buyer and Seller each acknowledge receipt of a disclosure of the possibility of multiple representation by the Broker representing that principal. This disclosure may be part of a listing agreement, buyer representation agreement or separate document (C.A.R. Form DA). Buyer understands that Broker representing Buyer may also represent other potential buyers, who may consider, make offers on or ultimately acquire the Property. Seller understands that Broker representing Seller may also represent other sellers with competing properties of Interest to this Buyer. B. CONFIRMATION: The following agency relationships are hereby confirmed for this transaction: Listing Agent _ Caldwell Banker Kendo EmIty (Print Firm Name) is the agent of (check one): ❑ the Seller exclusively; or ® both the Buyer and Seller. Selling Agent _ eT dre11 a .+>rer Men 122 Rea T y (Print Finn Name) (If not the same as the Listing Agent) is the agent of (check one): ❑ the Buyer exclusively; or ❑ the Seller exclusively; or ❑ both the Buyer and Seller. Real Estate Brokers are not parties to the Agreement between Buyer and Seller. 3. FINANCE TERMS: Buyer represents that funds will be good when deposited with Escrow Holder. A. INITIAL DEPOSIT: Deposit shall be in the amount of $ 1r00000 (1) Buyer shall deliver deposit directly to Escrow Holder by personal check, ❑ electronic funds transfer, ❑ Other within 3 business days after acceptance (or ® Other Friday. titan 27. 2011 ) OR (2) (If checked) ® Buyer has given the deposit by personal check (or ❑ ) to the agent submitting the offer (or to ❑ Redwood Empire Title made payable to . The deposit shall be held uncashed until Acceptance and then deposited with Escrow Holder (or ❑ into Broker's trust account) within 3 business days after Acceptance (or ❑ Other ) B. INCREASED DEPOSIT: Buyer shall deposit with Escrow Holder an Increased deposit in the amount of $ 51000.00 . within 60 Days After Acceptance, or ❑ C. LOAN(S) (1) FIRST LOAN In the amount of , $ This loan will be conventional financing or, if checked, ❑ FHA, ❑ VA, ❑ Seller (C.A.R. Form SFA), ❑ assumed financing (C,A.R. Form PAA), ❑ Other . This loan shall be at a fixed rate not to exceed % or, ❑ an adjustable rate ban with initial rate not to exceed Regardless of the type of loan, Buyer shall pay points not to exceed % of the loan amount (2) ❑ SECOND LOAN in the amount of $ This loan will be conventional financing or, if checked, ❑ Seller (C.A.R. Form SFA), ❑ assumed financing (C.A.R. Form PAA), ❑ Other . This loan shall be at a fixed rate not to exceed % or, (3 an adjustable rate loan with initial rate not to exceed Regardless of the type of loan, Buyer shall pay points not to exceed % of the loan amount. 0. ADDITIONAL FINANCING TERMS: $ E, BALANCE OF PURCHASE PRICE OR DOWN PAYMENT In the amount of $ 334, 000.00 to be deposited with Escrow Holder within sufficient time to close escrow. F. PORCH S IC OTAL): $9k- 340.000 00 Buyer's Initials ( ) ( ) Seller's initials ( } ) The copyright laws of United Statee (rde 17 U.S. Code) forbid the unauthorized reproduction of this f or any portion thereof, by photocopy machine or any other means, Including facabnlls or computerized farmats. Copyright ® 1996.2010, Reviewed by Date mlluHOUSNC CALIFORNIA ASSOCIATION OF REALTORSO, INC. ALL RIGHTS RESERVED. aeeasrowirv VLPA REVISED 4110 (PAGE 1 OF 10) VACANT LAND PURCHASE AGREEMENT (VLPA PAGE 1 OF 10) Agent: Kathy Pomilia Phone: 707.482.5400 Fax: 707.462.3857 Prepared using zipForm® software 1 Br6ker: Cotdweii Banker Mendo Reaty, Inc. 169 Mason St.. Ste 300 Ukiah. CA 95482 Docu$ign Envelope ID: 4608FC4C-B48F-4C80-9322-3ADCF5593057 Property: 3495 Taylor fir. Date: May 18, 2021 _ G. VERIFICATION OF DOWN PAYMENT AND CLOSING COSTS: Buyer (or Buyer's lender or, loan broker pursuant to 3H(1)) shall, within _ 7 (or ) Days After Acceptance, Deliver to Seller written verification of Buyer's down payment and closing costs. (if checked, (3verification attached.) H. LOAN TERMS: (1) LOAN APPLICATIONS: Within 7 (or [3 ) Days After Acceptance, Buyer shall Deliver to Seller a letter from lender or loan broker stating that, based on a review of Buyer's written application and credit report, Buyer is prequalified or preapproved for any NEW loan specified in 3C above. (If checked [I letter attached.) (2) LOAN CONTINGENCY. Buyer shall act diligently and in good faith to obtain the designated loan(s). Obtaining the ban(s) specified above Is a contingency of this Agreement unless otherwise agreed In writing. Buyer's contractual obligations to obtain and provide deposit, balance of down payment and closing costs are not contingencies of this Agreement. (3) LOAN CONTINGENCY REMOVAL:. (1) Within 17 (or ) Days After Acceptance, Buyer shall, as specified in paragraph 19, in writing remove the loan contingency or cancel this Agreement; OR (II) if checked) 0 the loan contingency shall remain in effect until the designated loans are funded. (4) Q NO LOAN CONTINGENCY (if checked): Obtaining any loan specified above Is NOT a contingency of this Agreement. If Buyer does not obtain the loan and as a result Buyer does not purchase the Property, Seller may be entitled to Buyer's deposit or other legal remedies. .I. APPRAISAL CONTINGENCY AND REMOVAL: This Agreement is (OR, if checked, 0 is NOT) contingent upon a written appraisal of the Property by a licensed or certified appraiser at no less than the specified purchase price. If there is a loan contingency, Buyer's removal of the loan contingency shall be deemed removal of this appraisal contingency (or, ❑ if checked, Buyer shall, as specified In paragraph 19B(3), in writing remove the appraisal contingency or cancel this Agreement within 17 Or 1 ) Days After Acceptance). If there is no loan contingency, Buyer shall, as specified in paragraph 196(3), in writing remove the appraisal contingency or cancel this Agreement within 17 (or 0 ) Days After Acceptance. J. ® ALL CASH OFFER (if checked): Buyer shall, within 7 (or ) Days After Acceptance, Deliver to Seller written verification of sufficient funds to close this transaction. (If checked 0 verification attached.) K. BUYER STATED FINANCING: Seller has relied on Buyer's representation of the type of financing specified (including but not limited to, as applicable, amount of down payment, contingent or non contingent loan, or all cash). If Buyer seeks alternate financing, (1) Seller has no obligation to cooperate with Buyers efforts to obtain such financing, and (11) Buyer shall also pursue the financing method specified in this Agreement. Buyer's failure to secure alternate financing does not excuse Buyer from the obligation to purchase the Property and close escrow as specified in this Agreement. L. SELLER FINANCING: The following terms (or ❑ (if checked) the terms specified in the attached Seller Financing Addendum (C.A.R. Form SFA) apply ONLY to financing extended by Seller under this Agreement. (1) BUYER'S CREDIT-WORTHINESS: Buyer authorizes Seller and/or Brokers to obtain, at Buyer's expense, a copy of Buyer's credit report. Within 7 (or [I ) Days After Acceptance, Buyer shall provide any supporting documentation reasonably requested by Seller. (2) TERMS: Buyer's promissory note, deed of trust and other documents as appropriate shall incorporate and implement the following additional terms: (1) the maximum interest rate specified in paragraph 3C shall be the actual Ned interest rate for Seller financing; (II) deed of trust shall contain a REQUEST FOR NOTICE OF DEFAULT on senior loans; (III) Buyer shall sign and pay for a REQUEST FOR NOTICE OF DELINQUENCY prior to Close Of Escrow and at any future time if requested by Seller; (Iv) note and deed of trust shall contain an acceleration clause making the loan due, when permitted by law and at Seller's option, upon the sale or transfer of the Property or any interest in it; (v) note shall contain a late charge of 6% of the Installment due (or [3 ) If the Installment is not received within 10 days of the date due; (vi) title Insurance coverage in the form of a joint protection policy shag be provided insuring Sellers deed of trust interest in the Property (any increased cost over owner's policy shall be paid by Buyer); and (vil) tax service shall be obtained and paid for by Buyer to notify Seller if property taxes have not been paid. (3) ADDED, DELETED OR SUBSTITUTED BUYERS: The addition, deletion or substitution of any person or entity under this Agreement or to title prior to Close Of Escrow shall require Seller's written consent. Seller may grant or withhold consent in Sellers sole discretion. Any additional or substituted person or entity shall, if requested by Seller, submit to Seller the same documentation as required for the original named Buyer. Seller and/or Brokers may obtain a credit report, at Buyer's expense, on any such person or entity. M. ASSUMED OR "SUBJECT TO" FINANCING: Seller represents that Seller is not delinquent on any payments due on any loans. Seller shall, within the time specified In paragraph 19, provide Copies of all applicable notes and deeds of trust, loan balances and current interest rates to Buyer. Buyer shall then, as specified in paragraph 19B(3), remove this contingency or cancel this Agreement. Differences between estimated and actual loan balances shall be adjusted at Close Of Escrow by cash down payment. Impound accounts, if any, shall be assigned and charged to Buyer and credited to Seller. Seller is advised that Buyers assumption of an existing loan may not release Seller from liability on that loan. if this is an assumption of a VA Loan, the sale is contingent upon Seller being provided a release of liability and substitution of eligibility, unless otherwise agreed in writing. If the Properly is acquired subject to.on existing loan, Buyer and Seller are advised to consult with legal counsel regarding the ability of an existing lender to call the loan due, and the consequences thereof. 4. ALLOCATION OF COSTS (If checked): Unless otherwise specified in writing, this paragraph only determines who Is to pay for the inspection, test or service rReport°) mentioned; it does not determine who is to pay for any work recommended or identified in the Report. A. INSPECTIONS AND REPORTS: (1) Q Buyer ❑ Seller shall pay to have existing septic or private sewage disposal system, If any, Inspected (2) Q Buyer 13 Seiler shall pay for costs of testing to determine the suitability of soil for sewage disposal (3) [3 Buyer 0 Seller shall pay to have existing wells, if any, tested for water potability and productivity [is OS Buyers Initials ( ) ( ) Sellers Initials ( ) ( QS ) Copyright 01998- 10, CALIFORNIA ASSOCIATION OF REALTORSO, INC. Revlewed b Date VLPA REVISE 4/10 (PAGE 2 OF 10) by o~aoaruHirv VACANT LAND PURCHASE AGREEMENT (VLPA PAGE 2 OF 10) City of Uldah Offer Docb,$ign Envelope ID: 4608FC4C-B48F-4C80-9322-3ADCF5593057 Property: 3495 Taylor ft. Date: May 18, 2011 (4) j] Buyer ❑ Seiler shall pay to have Property comers identified (5) ❑ Buyer 0 Seller shall pay for a natural hazard zone disclosure report prepared by (6) 0 Buyer 13 Seller shall pay for the following inspection or report (7) Q Buyer 13 Seller shall pay for the following Inspection or report B. ESCROW AND TITLE: (1) ® Buyer Seller shall pay escrow fee Escrow Holder shall be Redwood 2kwire Title Co. (2) ® Buyer 13 Seller shall pay for owner's title insurance policy specified in paragraph 15E Owner's title policy to be issued by Bedrrood hire Title C2. (Buyer shall pay for any titre Insurance policy insuring Buyer's Lender, unless otherwise agreed In writing.) C. OTHER COSTS:. (1) ® Buyer 0 Seller shall pay County transfer tax or transfer fee (2) 0 Buyer C3 Seller shall pay City transfer tax or transfer fee (3) 13 Buyer 0 Seller shall pay Homeowners' Association ("HOA") transfer fees (4) [3 Buyer ❑ Seiler shall pay HOA document preparation fees (5) ® Buyer 0 Seller shall pay for 9.54 calmnies4 esmense (6) ® Buyer 13 Seller shall pay for All escrow fees and closincr costs charged by Title Com>vany 5. POSSESSION AND KEYS: Possession shall be delivered to Buyer at 5PM or [3 AM 0 PM, Mon the date of Close Of Escrow; ❑ on ; or❑ no later than Days. After Close Of Escrow. The Property shall be unoccupied, unless otherwise agreed in writing. Seller shall provide keys and/or means to operate all Property locks. If Properly is located in a common interest subdivision, Buyer may be required to pay a deposit to the Homeowners' Association ("HOA") to obtain keys to accessible HOA facilities. 6. STATUTORY DISCLOSURES AND CANCELLATION RIGHTS: A. NATURAL AND ENVIRONMENTAL HAZARDS: Seller shall, within the time specified in paragraph 18, deliver to Buyer if required by Law: (1) earthquake guides (and questionnaire) and environmental hazards booklet; (11) disclose if the Property is located In a Special Flood Hazard Area; Potential Flooding (Inundation) Area; Very High Fire Hazard Zone; State Fire Responsibility Area; Earthquake Fault Zone; Seismic Hazard Zone; and (111) disclose any other zone as required by Law and provide any other information required for those zones. B. WITHHOLDING TAXES: Within the time specified in paragraph 19A, to avoid required withholding, Seller shall Deliver to Buyer or qualified substitute, an affidavit sufficient to comply with federal (FIRPTA) and California withholding Law (CA R. Form AS or QS). C. MEGAN'S LAW DATABASE DISCLOSURE: Notice: Pursuant to Section 290AS of the Penal Code, information about specified registered sex offenders is made available to the publlc via an Internet Web site maintained by the Department of Justice at www.megansiaw.ca.gov. Depending on an offender's criminal history, this information will include either the address at which the offender resides or the community of residence and ZIP Code in which he or she resides. (Neither Seller nor Brokers are required 'to check this website. If Buyer wants further information, Broker recommends that Buyer obtain information from this website during Buyer's inspection contingency period. Brokers do not have expertise in this area. 7. SELLER DOCUMENTATION AND ADDITIONAL DISCLOSURE: A. Within the time specified in paragraph 19, if Seller has actual knowledge, Seller shall provide to Buyer, in writing, the following information: (1) LEGAL PROCEEDINGS: Any lawsuits by or against Seller, threatening or affecting the Property, including any lawsuits alleging a defect or deficiency in the Property or common areas, or any known notices of abatement or citations filed or issued against the Property. (2) AGRICULTURAL USE: Whether the Property is subject to restrictions for agricultural use pursuant to the Williamson Act (Government Code §§51200.51295). (3) DEED RESTRICTIONS: Any dead restrictions or obligations. (4) FARM USE: Whether the Properly Is In, or adjacent to,, an area with Right to Farm rights (Civil Code §3482.5 and §3482.6). (5) ENDANGERED SPECIES: Presence of endangered, threatened, 'candidate' species, or wetlands on the Property. (6) ENVIRONMENTAL HAZARDS: Any substances, materials, or products that may be an environmental hazard including, but not limited to, asbestos, formaldehyde, radon gas, lead-based paint, fuel or chemical storage tanks, and contaminated soil or water on the Property. .(7) COMMON WALLS: Arty features of the Property shared in common with adjoining landowners, such as walls, fences, roads, and driveways, and agriculture and domestic wells whose use or responsibility for maintenance may have an effect on the Property. (8) LANDLOCKED: The absence of legal or physical access to the Property. (10) SOIL FILL: Any fill (compacted or otherwise), or abandoned mining operations on the Property. (11) SOIL PROBLEMS: Any slippage, sliding, flooding, drainage, grading, or other soil problems. (12) EARTHQUAKE DAMAGE: Major damage to the Property or any of the structures from fire, earthquake, floods, or landslides. (13) ZONING ISSUES: Any zoning violations, non-conforming uses, or violations of "setback" requirements. (14) NEIGHBORHOOD PROBLEMS: Any neighborhood noise problems, or other nuisances. B. RENTAL AND SERVICE AGREEMENTS: Within the time specified in paragraph 19, Seller shall make available to Buyer for inspection and review, all current leases, rental agreements, service contracts and other related agreements, lloenses, and permits pertaining to the operation or use of the Property. C. 13 TENANT ESTOPPEL CERTIFICATES: (if checked) Within the time specified in paragraph 19, Seller shall deliver to Buyer tenant estoppel certificates (CAR. Form TEC) completed by Seller or Seller's agent, and signed by tenants, acknowledging: '(I) that tenants' rental or lease agreements are unmodified and in full force and effect (or if modified, staling all such modifications); (11) that no lessor defaults exist; and (ill) stating the amount of any prepaid rent or security deposit. D. MELLO-ROOS TAX; 1915 BOND ACT. Within the time specified in paragraph 19, Seller shall: (i) make a good faith effort to obtain a notice from any local agencies that levy a special tax or assessment on the Property (or, if allowed, substantially equivalent notice), pursuant to the Mello-Roos Community Facilities Act, and Improvement Bond Act of 1915, and (II) promptly deliver to Buyer any such noti Abtained. as Buyer's Initials ) ( ) Seller's Initials ( ) ( ) Copyright 0199&2 1 , CALIFORNIA ASSOCIATION OF REALTORS, INC. VLPA REVISED 10 (PAGE 3 OF 10) Reviewed by Date nwoxrac VACANT LAND PURCHASE AGREEMENT (VLPA PAGE 3 OF 10) City of Uldah Offer Docaign Envelope ID: 4608FC4C-B48F-4C80-9322-3ADCF5593057 Property: 3495 Taylor Dr. Date: May 18, 2011 - 8-CONDOMINIUWPLANNED-UNIT DEVEL-OPMENT-DISCL-OSURES: - A. SELLER HAS: 7 (or 13 ) Days After Acceptance to disclose to Buyer whether the Property is a condominium, or is located in a planned development or other common interest subdivision (CA.R. Form VLQ). S. If the Property Is a condominium, or located in a planned unit development or other common interest subdivision, Seller has 3 (or ❑ ) Days After Acceptance to request from the HOA (C.A.R. Form HOA):.(n Copies of any documents required by Law; (II) disclosureo7 any pending or anticipated claim or litigation by or against the HOA; (III) a statement containing the location and number of designated parking and storage spaces; (iv) Copies of the most recent 12 months of HOA minutes for regular and special meetings; and (v) the names and contact information of all HOA9 governing the Property (collectively, "Cl Disclosures") and (vi) the following If Seller has actual knowledge: (a) any material defects in the condition of common area (such as pools, tennis courts, walkways or other areas to-owned in undivided Interest with other); and (b) possible lack of compliance with HOA requirements. Seller shall itemize and Deliver to Buyer all Cl Disclosures received from the HOA and any Cl Disclosures in Seller's possession. Buyer's approval of Cl Disclosures Is a contingency of this Agreement as specified in paragraph 14B(3). 9. SUBSEQUENT DISCLOSURES: In the event Seller, prior to Close Of Escrow, becomes aware of adverse conditions materially affecting the Property, or any material inaccuracy in disclosures, information or representations previously provided to Buyer of which Buyer is otherwise ynaware, Seller shall promptly provide a subsequent or amended disclosure or notice, in writing, covering those items. However, a subsequent or amended disclosure shall not be required for conditions and material Inaccuracies disclosed In reports ordered and paid for by Buyer. 10. CHANGES DURING ESCROW: A. Prior to Close Of Escrow, Seller may engage in the following acts, ("Proposed Changes"), subject to Buyer's rights in paragraph 19: (1) rent or lease any part of the premises; (ii) alter, modify or extend any existing rental or lease agreement; (iii) enter into, alter, modify or extend any service contract(s); or (lv) change the status of the condition of the Property. B. At least 7 (or (3 ) Days prior to any Proposed Changes, Seller shall give written notice to Buyer of such Proposed Changes. 11. ITEMS INCLUDED AND EXCLUDED: A. NOTE TO BUYER AND SELLER: Items listed as included or excluded in the MLS, flyers or marketing materials are not included in the purchase price or excluded from the sale unless specified in 11 B or C. B. ITEMS INCLUDED IN SALE: (1) All EXISTING fixtures and fittings that are attached to the Property; (2) The following Hems: (3) Seller represents that all Hems Included In the purchase price, unless otherwise specified, are owned by Seller. (4) All items included shall be transferred free of liens and without Seiler warranty. C. ITEMS EXCLUDED FROM SALE: 12. CONDITION OF PROPERTY: Unless otherwise agreed: (I) the Property Is sold (a) in Its PRESENT physical ("as4s'l condition as of the date of Acceptance and (b) subject to Buyer investigation rights; (II) the Property Is to be maintained in substantially the same condition as of the date of Acceptance and (ill) ® (If checked) All debris and personal property not Included in the sale shall be removed by Seller by Close Of Escrow. A. SELLER SHALL, within the time specified in paragraph 19, DISCLOSE KNOWN MATERIAL FACTS AND DEFECTS AFFECTING THE PROPERTY AND MAKE ALL OTHER DISCLOSURES REQUIRED BY LAW. B. Buyer has the right to inspect the Property and, as specified in paragraph 19B, based upon information discovered in those inspections: (d) cancel this Agreement; or (11) request that Seller make Repairs or take other action. C. Buyer is strongly advised to conduct Investigations of the entire Property In order to determine Its present condition. Seller may not be aware of all defects affecting the Property or other factors that Buyer considers Important. Property Improvements may not be built according to code, in compliance with current Law, or have had permits Issued. 13. BUYER'S INVESTIGATION OF PROPERTY AND MATTERS AFFECTING PROPERTY: A. Buyer's acceptance of the condition of, and any other matter affecting the Property, is a contingency of this Agreement as specified in this paragraph and paragraph 19B. Within the time specified in paragraph 19B(1), Buyer shall have the right, at Buyers expense unless otherwise agreed, to conduct inspections, investigations, tests, surveys and other studies ("Buyer Investigations'), including, but not limited to, the right to: (1) Inspect for lead-based paint and other lead-based paint hazards; (II) Inspect far wood destroying pests and organisms; (III) review the registered sex offender database; (iv) confirm the insurability of Buyer and the Property; and (v) satisfy Buyer as to any matter specified In the attached Buyer's Inspection Advisory (C.A.R. Form BIA). Without Seller's prior written consent, Buyer shall neither make nor cause to be made: (1) invasive or destructive Buyer Investigations; or (11) Inspections by any govemmentai building or zoning Inspector or government employee, unless required by Law. B. Seller shall make the Property available for all Buyer Investigations. Buyer shall (1) as specified in paragraph 19B, complete Buyer Investigations and, either remove the contingency or cancel this Agreement, and (11) give Seller, at no cost, complete Copies of all Investigation reports obtained by Buyer, which obligation shall survive the termination of this Agreement. C. Buyer Indemnity and Seller protection for entry upon property: Buyer shall: (1) keep the Property free and clear of liens; (II) repair all damage arising from Buyer Investigations; and (III) indemnity and hold Seller harmless from all resulting liability, claims, demands, damages and costs of Buyer's Investigations. Buyer shall carry, or Buyer shall require anyone acting on Buyer's behalf to carry, policies of liability, workers' compensation and other applicable insurance, defending and protecting Seller from liability for any Injuries to persons or property occurring during any Buyer Investigations or work done on the Property at Buyer's direction prior to Close Of Escrow. Seller Is advised that certain protections may be afforded Seller by recording a "Notice of Non-responsibility" (CA.R. Form NNR) for Buyer Investigations and work done on the Property at Buyer's direction. Buyers obligations under this paragraph shall survive the termination or cancellation of this Agreement and Close of Escrow. q~OS DS Buyer's Initials VO~,CALIFORNLAASSOCIATION ) Seller's Initials ( ,l ) ( a~ Copyright©199 OFREALTORS®, INC. Revlewed by Date a AIRIGNnv VLPA REVISE 10) VACANT LAND PURCHASE AGREEMENT (VLPA PAGE 4 OF 10) City of Ukiah Offer Doc63ign Envelope ID: 4608FC4C-B48F-4C80-9322-3ADCF5593057 Property: 3495 Taylor Dr. Date: May 18, 2011 THE PROPERTY AND ALL MATTERS AFFECTING THE VALUE OR DESIRABILITY OF THE PROPERTY, INCLUDING BUT NOT LIMITED TO, THE ITEMS SPECIFIED BELOW. IF BUYER DOES NOT EXERCISE THESE RIGHTS, BUYER IS ACTING AGAINST THE ADVICE OF BROKERS. BUYER UNDERSTANDS THAT ALTHOUGH CONDITIONS ARE OFTEN DIFFICULT TO . LOCATE AND DISCOVER, ALL REAL PROPERTY CONTAINS CONDITIONS THAT ARE NOT READILY APPARENT AND THAT MAY AFFECT THE VALUE OR DESIRABILITY OF THE PROPERTY. BUYER AND SELLER ARE AWARE THAT BROKERS DO NOT GUARANTEE, AND IN NO WAY ASSUME RESPONSIBILITY FOR, THE CONDITION OF THE PROPERTY. BROKERS HAVE NOT AND WILL NOT VERIFY ANY OF THE ITEMS IN THIS PARAGRAPH 13, UNLESS OTHERWISE AGREED IN WRITING. E. SIZE, LINES, ACCESS AND BOUNDARIES: Lot size, property lines, legal or physical access and boundaries including features of the Property shared in common with adjoining landowners, such as walls, fences, roads and driveways, whose use or responsibility for maintenance may have an effect on the Property and any encroachments, easements or similar matters that may aftect the Property. (Fences, hedges, walls and other natural or constructed barriers or markers do not necessarily Identify true Property boundaries. Property lines may be verified by survey.) (Unless otherwise specified in writing, any numerical statements by Brokers regarding lot size are APPROXIMATIONS ONLY, which have not been and will not be verified, and should not be relied upon by Buyer.) F. ZONING AND LAND USE: Past, present, or proposed laws, ordinances, referendums, initiatives, votes, applications and permits affecting the current use of the Property, future development, zoning, building, size, governmental permits and inspections. Any zoning violations, non-conforming uses, or violations of "setback" requirements. (Buyer should also Investigate whether these matters affect Buyer's intended use of the Property.) G. UTILITIES AND SERVICES: Availability, costs, restrictions and location of utilities and services, including but not limited to, sewerage, sanitation, septic and leach lines, water, electricity, gas, telephone, cable TV and drainage. H. ENVIRONMENTAL HAZARDS: Potential environmental hazards, including, but not limited to, asbestos, lead-based paint and other lead contamination,, radon, methane, other gases, fuel, oil or chemical storage tanks, contaminated soil or water, hazardous waste, waste disposal sites, electromagnetic fields, nuclear sources, and other substances, including mold (airborne, toxic or otherwise), fungus or similar contaminant, materials, products or conditions, 1. GEOLOGIC CONDITIONS: Geologic/seismic conditions, soil and terrain stability, suitability and drainage Including any slippage, sliding, flooding, drainage, grading, fill (compacted or otherwise), or other soil problems. J. NATURAL HAZARD ZONE: Special Flood Hazard Areas, Potential Flooding (Inundation) Areas, Very High Fire Hazard Zones, State Fire Responsibility Areas, Earthquake Fault Zones, Seismic Hazard Zones, or any other zone for which disclosure is required by Law. K. PROPERTY DAMAGE: Major damage to the Property or any of the structures or non-structural systems and components and any personal property included in the sale from fire, earthquake, floods, landslides or other causes. L. NEIGHBORHOOD, AREA AND PROPERTY CONDITIONS: Neighborhood or area conditions, Including Agricultural Use Restrictions pursuant to the Williamson Act (Government Code §§51200-51295), Right To Farm Laws (Civil Code §3482.5 and §3482.6), schools, proximity and adequacy of law enforcement, crime statistics, the proximity of registered felons or offenders, fire protection, other government services, availability, adequacy and cost of any speed-wired, wireless Internet connections or other telecommunications or other technology services and Installations, proximity to commercial, industrial or agricultural activities, existing and proposed transportation, construction and development that may affect noise, view, or traffic, airport noise, noise or odor from any source, abandoned mining operations on the Property, wild and domestic animals, other nuisances, hazards, or circumstances, protected species, wetland properties, botanical diseases, historic or other governmentally protected sites or improvements, cemeteries, facilities and condition of common areas of common interest subdivisions, and possible lack of compliance with any goveming documents or Homeowners' Association requirements, conditions and influences of significance to certain cultures and/or religions, and personal needs, requirements and preferences of Buyer. M. COMMON INTEREST SUBDIVISIONS: OWNER ASSOCIATIONS: Facilities and condition of common areas (facilities such as pools, tennis courts, walkways, or other areas co-owned in undivided interest with others), Owners' Association that has any authority over the subject property, CC&Rs, or other deed restrictions or obligations, and possible lack of compliance with any Owners' Associaton requirements. N. SPECIAL TAX: Any local agencies that levy a special tax on the Property pursuant to the Mello-Roos Community Facilities Act or Improvement Bond Act of 1915. 0. RENTAL PROPERTY RESTRICTIONS: Some cities and counties Impose restrictions that limit the amount of rent that can be charged, the maximum number of occupants and the right of a landlord to terminate a tenancy. P. MANUFACTURED HOME PLACEMENT- Conditions that may affect the ability to place and use a manufactured home on the Property. 14. SELLER DISCLOSURES; ADDENDA; ADVISORIES; OTHER TERMS: ti0 Seller Vacant Land Questionaire (CAP, Forth VLQ) S. Addenda (if checked): Addendum # (CAR. Farm ADM) U Wood Destroying Pest Inspection and Allocation of Cost Addendum (CAR. Form WPA) Purchase Agreement Addendum (CAR Form PAA) Septic, Well and Property Monument Addendum (CAR. Form SWPI) Short Sale Addendum (CAR. Forth SSA) Other . C. Advisories (If checked): IN Buyer's Inspection Advisory (CAR. Form BIA) U Trust Advisory (CAR. Form TA) U REO Advisory (CAR. Form REO) D. Other Terms: See attached addendum q}DS os Buyer's Initials ) ( ) Seller's Initials ( +l ) ( Q~ ) Copyright ®1996- 10, ( G 5CALIFORNIA ASSOCIATION OF REALTORS, INC. Reviewed by Date OrioenNnY VLPA REVISE 4110 (PAGE OF 10) VACANT LAND PURCHASE AGREEMENT (VLPA PAGE 5 OF 10) City of Ukiah Offer DocbSign Envelope ID: 4608FC4C-B48F-4C80-9322-3ADCF5593057 Property: 3495 Tavior pr. Date' Mar 18, 2011 15. TITLE AND VESTING: A-Within-the-time-specified in-paragraph 19; Buyer-shall-be-provided-a-current-preliminary title -report,-whieh-shall-include,a-search-of-the-General- Index, Seller shall within 7 Days After Acceptance, give Escrow Holder a completed Statement of Information. The preliminary report is only an offer by the title insurer to. Issue a pollcy of title Insurance and may not contain every item affecting title. Buyer's review of the preliminary report and any other matters which may affect title are a contingency of this Agreement as specified In paragraph 19B. •B. Title is taken in its present condition subject to all encumbrances; easements, covenants, conditions, restrictions, rights and other matters, whether of record or not, as of the date of Acceptance except: (I) monetary liens of record unless Buyer is assuming those obligations or taking the Property subject to those obligations; and (ii) those matters which Seller has agreed to remove in writing. C. Within the time specified in paragraph 19, Seller has a duty to disclose to Buyer all matters known to Seller affecting title, whether of record or not. D. At Close Of Escrow, Buyer shall receive a grant deed conveying title (or, for stock cooperative or long-term lease, an assignment of stock certificate or of Seller's leasehold interest), including oil, mineral and water rights if currently owned by Seller. Title shall vest -as designated in Buyer's supplemental escrow instructions. THE MANNER OF TAKING TITLE MAY HAVE SIGNIFICANT LEGAL AND TAX CONSEQUENCES. CONSULT AN APPROPRIATE PROFESSIONAL. E. Buyer shall receive a standard coverage owner's CLTA policy of fifie insurance. An ALTA policy or the addition of endorsements may provide greater coverage for Buyer. A title company, at Buyer's request, can provide Information about the availability, desirability, coverage, survey requirements, and cost of various fitle Insurance coverages and endorsements. If Buyer desires title coverage other than that required by this paragraph, Buyer shall instruct Escrow Holder in writing and pay any increase in cost. 16. SALE OF BUYER'S PROPERTY- A. This Agreement is NOT contingent upon the sale of any property owned by Buyer. OR B. ❑ (if checked) The attached addendum (C.A.R. Form COP) regarding the contingency for the sale of property owned by Buyer is incorporated into this Agreement. 17. 13 MANUFACTURED HOME PURCHASE (if checked): The purchase of the Property is contingent upon Buyer acquiring a personal property manufactured home to be placed on the Property after Close Of Escrow. Buyer 0 has [3 has not entered Into a contract for the purchase of a personal property manufactured home. Within the time specified in paragraph 19, Buyer shall remove this contingency or cancel this Agreement, (OR, If checked, 0 this contingency shall remain in effect until the Close Of Escrow of the Property). 18. ❑ CONSTRUCTION LOAN FINANCING (if checked): The purchase of the Property is contingent upon Buyer obtaining a construction loan. A draw from the construction ban ❑ will ❑ will not be used to finance the Property. Within the time specified in paragraph 19, Buyer shall remove this contingency or cancel this Agreement (or, if checked, this contingency shall remain In effect until Close Of Escrow of the Property). 19. 71ME PERIODS; REMOVAL OF CONTINGENCIES; CANCELLATION RIGHTS: The following time periods may only be extended, altered, modified or changed by mutual written agreement. Any removal of contingencies or cancellation under this paragraph by either Buyer or Seller must be exercised In good faith and in writing (C.A.R. Form CR or CC). A. SELLER HAS: 7 (or ❑ ) Days After Acceptance to Deliver to Buyer all Reports, disclosures and informafion for which Seiler is responsible under paragraphs 3M, 4, 6A and B, 7, 8A, 12A, 14A and B, and 15. Buyer may give Seller a Notice to Seller to Perform (C.A.R. Forth NSP) if Seller has not Delivered the items within the time specified. B. (1) BUYER HAS: 17 (or ® 90 ) Days After Acceptance, unless otherwise agreed in writing, to complete all Buyer Investigations; approve all disclosures, reports and other applicable information, which Buyer receives from Seller, and approve all other matters affecting the Property (including lead-based paint and lead-based paint hazards as well as other information specified in paragraph 6 and insurability of Buyer and the Property). (2) Within the time specified in 198(1), Buyer may request that Seller make repairs or take any other action regarding the Property (C.A.R. Forth RR). Seller has no obligation to agree to or respond to Buyer's requests. (3) Within the time specified in 19B(1) (or as otherwise specified in this Agreement), Buyer shall, Deliver to Seller either (1) a removal of the applicable contingency (C.A.R. Form CR), or (11) a cancellation (C.A.R. Form CC) of this Agreement based upon a remaining contingency or Seller's failure to Deliver the specified items. However, if any report, disclosure or information for which Seller Is responsible is not Delivered within the time specified In 19A, then Buyer has 5 (orb_ ) Days After Delivery of any such Items, or the time specified in 19B(1), whichever is later, to Deliver to Seller a removal of the applicable contingency or cancellation of this Agreement. (4) Continuation of Contingency: Even after the end of the time specified in 198(1) and before Seller cancels this Agreement, if at all, pursuant to 19C, Buyer retains the right to either (1) In writing remove remaining contingencies, or (ii) cancel this Agreement based upon a remaining contingency or Sellers failure to Deliver the specified items. Once Buyer's written removal of all contingencies is Delivered to Seller, Seller may not cancel this Agreement pursuant to 19C(1). C. SELLER RIGHT TO CANCEL: (1) Seller right to Cancel; Buyer Contingencies: If, within the time specified in this Agreement, Buyer does not, in writing, Deliver to Seller a removal of the applicable contingency or cancellation of this Agreement then Seller, after first Delivering to Buyer a Notice to Buyer to Perform (C.A.R. Form NBP) may cancel this Agreement. In such event, Seller shall authorize return of Buyer's deposit. (2) Seller right to Cancel; Buyer Contract Obligations: Seiler, after first Delivering to Buyer a NBP may cancel this Agreement for any of the following reasons: (1) If Buyer fails to deposit funds as required by 3A or 313; (ii) If the funds deposited pursuant to 3A or 38 are not good when deposited; (III) if Buyer fails to Deliver a letter as required by 3H; (iv) if Buyer fails to Deliver verification as required by 3G or 3.1; or (v) if Seger reasonably disapproves of the verification provided by 3G or 3.1 or the credit report or supporting documentation pursuant to 3M. In such event, Seller shall authorize return of Buyers deposit. (3) Notice To Buyer To Perform: The NBP shall: (i) be in writing; (Ii) be signed by Seller; and (Ili) give Buyer at least 2 (or 0 ) Days After Delivery (or until the time specified In the applicable paragraph, whichever occurs last) to take the applicable action. A NBP may not be Delivered any earlier than 2 Days Prior to the expiration of the applicable time for Buyer to remove a contingency or cancel this Agreement or meet an obligation specified in 19C(2). D. EFFECT OF BUYER'S REMOVAL OF CONTINGENCIES: If Buyer removes, in writing, any contingency or cancellation rights, unless otherwise specified in a separate written agreement between Buyer and Seller, Buyer shall with regard to that contingency or cancellation right conclusively be deemed to have: (1) completed all Buyer Investigations, and review of reports and other applicable information and disclosures; (ii) elected to proceed with the transaction; and (111) assumed all liability, responsibility and expense for Repai rrections orJor inability to obtain finanVCALIFORNIA Q~ Buyer's Initials Seller's Initials Copyright m 196 ASSOCIATION OF REALTORS®, INC. 12 VLPA REVISE OF 10) Reviewed by Date 9eeanreeirr - OM It VACANT LAND PURCHASE AGREEMENT (VLPA PAGE 6 OF 10) City of Ukiah Offer DocuSign Envelope ID: 4608FC4C-B48F-4C80-9322-3ADCF5593057 Property: 3495 raylor Dr. Date: Hay 18, 2021 E. CLOSE OF ESCROW: Before Seller or Buyer may cancel this Agreement for failure of the other party to close escrow pursuant to this Agreement, Seller or Buyer must first give the other a demand to dose escrow (C.A.R. Form OCE). F. EFFECT OF CANCELLATION ON DEPOSITS: If Buyer or Seller gives written notice of cancellation pursuant to rights duly exercised under the terms of this Agreement, Buyer and Seller agree to Sign mutual instructions to cancel the sale and escrow and release deposits, ff any, to the party entitled to the funds, less fees and costs incurred by that party. Fees and costs may be payable to service providers and vendors for services and products provided during escrow. Release of funds will require mutual Signed release instructions from Buyer and Seiler, judicial decision or arbitration award. 20. -FINAL VERIFICATION OF CONDITION: Buyer shall have the right to make a final Inspection of the Property within 5 (or Days Prior to Close Of Escrow, NOT AS A CONTINGENCY OF THE SALE, but solely to confirm: I the Pro) y party is maintained pursuant to paragraph 12; (II) Repairs have been completed as agreed; and (ill) Seller has compiled with Seller's other obligations under this Agreement (CA.R. FORM VP). 21. ENVIRONMENTAL HAZARD CONSULTATION: Buyer and Seller acknowledge: (1) Federal, state, and local legislation Impose liability upon existing and former owners and users of real property, in applicable situations, for certain legislatively defined, environmentally hazardous substances; (11) Broker(s) has/have made no representation concerning the applicability of any such taw to this transaction or to Buyer or to Seller, except as otherwise indicated in this Agreement; (Ill) Broker(s) has/have made no representation concerning the existence, testing, discovery, location and evaluation of/lor, and risks posed by, environmentally hazardous substances, if any, located on or potentially affecting the Property; and (Iv) Buyer and Seller are each advised to consult with technical and legal experts concerning the existence, testing, discovery, location and evaluation of/for, and risks posed by, environmentally hazardous substances, if any, located on or potentially affecting the Property. 22. PRORATIONS OF PROPERTY TAXES AND OTHER ITEMS: Unless otherwise agreed in writing, the following items shall be PAID CURRENT and prorated between Buyer and Seller as of Close Of Escrow: real property taxes and assessments, interest, rents, HOA regular, special, and emergency dues and assessments imposed prior to Close Of Escrow, premiums on Insurance assumed by Buyer, payments on bonds and assessments assumed by Buyer, and payments on Mello-Roos and other Special Assessment District bonds and assessments that are a current lien. The following items shall be assumed by Buyer WITHOUT CREDIT toward the purchase price: prorated payments on Mello-Roos and other Special Assessment Distrct bonds and assessments and HOA special assessments that are a current lien but not yet due. The Property will be reassessed upon change of ownership. Any supplemental tax bills shall be paid as follows: (1) for periods after Close Of Escrow, by Buyer, and (II) for periods prior to Close Of Escrow, by Seller. See CA.R.Forn SPT or SBSA for further information. TAX BILLS ISSUED AFTER CLOSE OF ESCROW SHALL BE HANDLED DIRECTLY BETWEEN BUYER AND SELLER. Prorations shall be made based on a 30-day month. 23. SELECTION OF SERVICE PROVIDERS: Brokers do not guarantee the performance of any vendors, service or product providers ("Providers"), whether referred by Broker or selected by Buyer, Seller or other person. Buyer and Seller may select ANY Providers of their own choosing. 24. MULTIPLE LISTING SERVICE/PROPERTY DATA SYSTEM: If Broker is a participant of a Multiple Listing Service ("MLS") or Property Data System ('PDS'), Broker is authorized to report to the MLS or PDS a pending sale and, upon Close Of Escrow, the sales price and other terms of this transaction shall be produced to the MLS to be published and disseminated to persons and entities authorized to use the information on terms approved by the MLS or PDS. 25. EQUAL HOUSING OPPORTUNITY. The Property is sold in compliance with federal, state and local anti-discrimination Laws. 26. ATTORNEY FEES: In any action, proceeding, or arbitration between Buyer and Seller arising out of this Agreement, the prevailing Buyer or Seller shall be entitled to reasonable attorney fees and costs from the non-prevailing Buyer or Seller, except as provided in paragraph 31A. 27. DEFINITIONS: As used in this Agreement: A. Acceptance" means the time the offer or final counter offer is accepted in writing by a party and is delivered to and personally received by the other party or that party's authorized agent in accordance with the terms of this offer or a final counter offer. B. "C.A.R. Form" means the specific form referenced or another comparable form agreed to by the parties. C. "Close Of Escrow" means the date the grant deed, or other evidence of transfer of title, is recorded. D. "Copy" means copy by any means including photocopy, NCR, facsimile and electronic. • E. "Days" means calendar days. However, after Acceptance, the last Day for performance of any act required by this Agreement (including Close Of Escrow) shall not include any Saturday, Sunday, or legal holiday and shall instead be the next Day. F. "Days After" means the specified number of calendar days after the occurrence of the event specified, not counting the calendar date on which . the specified event occurs, and ending at 11:59 PM on the final day. G. "Days Prior" means the specified number of calendar days before the occurrence of the event specified, not counting the calendar date on which the specified event is scheduled to occur. H. "Deliver", "Delivered" or "Delivery" regardless of the method used (i.e. messenger, mail, email, fax, other), means and shall be effective upon p) personal receipt by Buyer or Seiler or the individual Real Estate Licensee for that principal as specified in paragraph D of the section titled Real Estate Brokers on page 8; OR cal) if checked, Q per the attached addendum (C.A.R. Forth RDN). 1. "Electronic Copy" or "Electronic Signature" means, as applicable, an electronic copy or signature complying with California Law. Buyer and Seller agree that electronic means will not be used by either party to modify or alter the content or integrity of this Agreement without the knowledge and consent of the other party. J. "Law" means any law, code, statute, ordinance, regulation, rule or order, which is adopted by a controlling city, county, state or federal legislative, judicial or executive body or agency. K. "Repairs" means any repairs (including pest control), alterations, replacements, modifications or retrofitting of the Property provided for under this Agreement. L. "Signed" means either a handwritten or electronic signature on an original document, Copy or any counterpart. 28. BROKERS: A. BROKER COMPENSATION Seiler or Buyer, or both, as applicable, agrees to pay compensation to Broker as specified in a separate written agreement between Broker and that Seller or Buyer. Compensation is payable upon Close Of Escrow, or if escrow does not dose, as otherwise specified in the agreement between Broker and that Seller or Buyer. DS DS Buyer's Initial ) ( ) Sellers Initials ( ) 2L ) Copyright ©199 0, CALIFORNIA ASSOCIATION OF REALTORS®, INC. 2 VLPA REVIS D /10 (PAGE 7 OF 10) Reviewed by Date OPPORNam VACANT LAND PURCHASE AGREEMENT (VLPA PAGE 7 OF 10) City of Uldah Offer DoduSign Envelope ID: 4608FC4C-B48F-4C80-9322-3ADCF5593057 Property: 3495 Taylor ft. Date' May 18, 2021 B. SCOPE OF BROKER DUTY: Buyer and Seller acknowledge and agree that Brokers: (1) do not decide what price Buyer should pay or Seller should-accept,-Ql)-do-not-guarantee-the-condfion-of-the-Property; (iii)-do-not-guarantee-the-performance,-adequacy-or-completeness of- inspections, services, products or repairs provided or made by Seller or others; (tv) shall not be responsible for identifying defects that are not known to Broker(s); (v) shall not be responsible for inspecting public records or permits concerning the title or use of the Property; (vi) shell not be responsible for identifying location bf boundary lines or other items affecting title; (vll) shall not be responsible for verifying square footage, representations of others or information contained in inspection reports, MLS or PDS, advertisements, flyers or other promotional material, unless otherwise agreed in writing; (vill) shall not be responsible for providing legal or tax advice regarding any aspect of a transaction entered into by Buyer or Seiler in the course of this representation; and (Ix) shall not be responsible for providing other advice or information that exceeds the knowledge, education and experience required to perform real estate licensed activity. Buyer and Seller agree to seek legal, tax, insurance, title and other desired assistance from appropriate professionals. 29. JOINT ESCROW INSTRUCTIONS TO ESCROW HOLDER: A. The following paragraphs, or applicable portions thereof, of this Agreement constitute the joint escrow instructions of Buyer and Seller to Escrow Holder, which Escrow Holder is to use along with any related counter offers and addenda, and any additional mutual instructions to close the escrow: 1, 3, 4, 6B, 14B and D, 15,168, 17,18, 19F, 22, 27,28A, 29, 33, 35, and paragraph D of the section titled Real Estate Brokers on page 10. If a Copy of the separate compensation agreement(s) provided for in paragraph 28A, or paragraph D of the section titled Real Estate Brokers on page 10 is deposited with Escrow Holder by Broker, Escrow Holder shall accept such agreement(s) and pay out of Buyer's or Seller's funds, or both, as applicable, the respective Broker's compensation provided for in such agreement(s). The terms and conditions of this Agreement not specifically referenced above in the specified paragraphs are additional matters for the Information of Escrow Holder, but about which Escrow Holder need not be concerned. Buyer and Seller will receive Escrow Holder's general provisions directly from Escrow Holder and will execute such provisions upon Escrow Holder's request. To the extent the general provisions are Inconsistent or conflict with this Agreement, the general provisions will control as to the duties and obligations of Escrow Holder only. Buyer and Seller will execute additional instructions, documents and forms provided by Escrow Holder that are reasonably necessary to close the escrow. B. A Copy of this Agreement shall be delivered to Escrow Holder within 3 business days after Acceptance (or p Escrow Holder shall provide Seller's Statement of Information to Title company when received from Seller. Buyer and Seller authorize Escrow Holder to accept and rely on Copies and Signatures as defined in this Agreement as originals, to open escrow and for other purposes of escrow. The validity of this Agreement as between Buyer and Seller is not affected by whether or when Escrow Holder Signs this Agreement. C. Brokers are a party to the escrow for the sole purpose of compensation pursuant to paragraph 28A and paragraph D of the section titled Real Estate Brokers on page 10. Buyer and Seller irrevocably assign to Brokers compensation specified in paragraph 28A, respectively, and irrevocably instruct Escrow Holder to disburse those funds to Brokers at Close Of Escrow or pursuant to any other mutually executed cancellation agreement Compensation instructions can be amended or revoked only with the written consent of Brokers. Buyer and Seller shall release and hold harmless Escrow Holder from any liability resulting from Escrow Holder's payment to Broker(s) of compensation pursuant to this Agreement Escrow Holder shall immediately notify Brokers: (1) if Buyer's Initial or any additional deposit is not made pursuant to this Agreement, or is not good at time of deposit with Escrow Holder; or 01) If either Buyer or Seller Instruct Escrow Holder to cancel escrow. D. A Copy of any amendment that affects any paragraph of this Agreement for which Escrow Holder is responsible shall be delivered to Escrow Holder within 2 business days after mutual execution of the amendment. 30. LIQUIDATED DAMAGES: If Buyer fails to complete this purchase because of Buyer's default, Seller shall retain, as liquidated damages, the deposit actually paid. Buyer and Seller agree that this amount Is a reasonable sum given that It Is Impractical or extremely difficult to establish the amount of damages that would actually be suffered by Seller In the event Buyer were to breach this Agreement. Release of funds will require mutual, Signed release Instructions from both Buyer and Seller, judicial decision or arbitration aw4Wl /CUs Buyer's Initia / Seller's Initials 31. DISPUTE RESOLUTION: A. MEDIATION: Buyer and Seller agree to mediate any dispute or im arising between them out of this Agreement, or any resulting transaction, before resorting to arbitration or court action. Buyer and Seller also agree to mediate any disputes or claims with Broker(s), who, In writing, agree to such mediation prior to, or within a reasonable time after, the dispute or claim is presented to the Broker. Mediation fees, if any, shall be divided equally among the parties involved. If, for any dispute or claim to which this paragraph applies, any party (i) commences an action without first attempting to resolve the matter through mediation, or (11) before commencement of an action, refuses to mediate after a request has been made, then that party shall not be entitled to recover attorney fees, even if they would otherwise be available to that party in any such action. THIS MEDIATION PROVISION -APPLIES WHETHER OR NOT THE ARBITRATION PROVISION IS INITIALED. Exclusions from this mediation agreement are specified In paragraph 31C. B. ARBITRATION OF DISPUTES: Buyer and Seller agree that any dispute or claim in Law or equity arising between them out of this Agreement or any resulting transaction, which is not settled through mediation, shall be decided by neutral, binding arbitration. Buyer and Seiler also agree to arbitrate any disputes or claims with Broker(s), who, in writing, agree to such arbitration prior to, or within a reasonable time after, the dispute or claim is presented to the Broker: The arbitrator shall be a retired judge or justice, or an attorney with at least 5 years of residential re al estate Law experience, unless the parties mutually agree to a different arbitrator. The parties shall have the right to discovery in accordance with Code of Civil Procedure §1283.05. In all other respects, the arbitration shall be conducted in accordance with Title 9 of Part 3 of the Code of Civil Procedure. Judgment upon the award of the arbitrator(s) may be entered Into any court having jurisdiction. Enforcement of this agreement to arbitrate shall be governed by the Federal Arbitration Act. Exclusions from-this arbitration agreement are specified in paragraph 31C. as os Buyer's Initials ) ( ) Seller's Initials ( ) ( QS ) Copyright 01988- 0 0, CALIFORNIA ASSOCIATION OF REALTORS®, INC.. VLPA REVISE ' /10 (PAGE 8 OF 10) Reviewed by Date °~OpN y VACANT LAND PURCHASE AGREEMENT (VLPA PAGE 8 OF 10) City of Ukiah Offer DoctiSign Envelope ID: 4608FC4C-B48F-4C80-9322-3ADCF5593057 Property: 3495 Taylor Dr. Date: May 18, 2011 "NOTICE: BY INITIALING IN THE SPACE BELOW YOU ARE AGREEING TO HAVE ANY DISPUTE ARISING-OUT OF-THE-MA-rrERS-INCL-UDED-IN THE-'ARBITRATION -OF-iDISPUTES'-PROVISION-DECIDED- BY NEUTRAL ARBITRATION AS PROVIDED BY.CALIFORNIA LAW AND YOU ARE GIVING UP ANY RIGHTS YOU MIGHT POSSESS TO. HAVE THE DISPUTE LITIGATED IN A COURT OR JURY TRIAL. BY INITIALING IN THE SPACE BELOW YOU ARE GIVING UP YOUR JUDICIAL RIGHTS TO DISCOVERY AND APPEAL, UNLESS THOSE RIGHTS ARE SPECIFICALLY INCLUDED IN THE 'ARBITRATION OF DISPUTES' PROVISIO. IF YOU REFUSE TO-SUBMIT TO ARBITRATION AFTER AGREEING TO THIS PROVISION, YOU MAY BE COMPELLED TO ARBITRATE UNDER THE AUTHORITY OF THE CALIFORNIA CODE OF CIVIL PROCEDURE. YOUR AGREEMENT TO THIS ARBITRATION PROVISION IS VOLUNTARY." "WE HAVE READ AND UNDERSTAND THE FOREGOING AND AGREE TO SUBMIT DISPUTES ARISING OUT OF THE MATTERS INCLUDED IN THE 'ARBI!VION OF DISPUTES' PROVIM TO if EUTRAL ARBITRATION." - Bu_yer's Initi _s^ / Sellers Initla__ !1 `T___1 C. ADDITIONAL MEDIATION AND ARBITRATION TERMS: (1) EXCLUSIONS: The following matters shall be excluded frAW mediation and arbitration: (1) a judicial or non-Judicial foreclosure or other action or proceeding to enforce a deed of trust, mortgage or Installment land sale contract as defined In Civil Code §2985; (II) an unlawful detainer action; (Ill) the filing or enforcement of a mechanic's lion; and (iv) any matter that is within the Jurisdiction of a probate, small claims or bankruptcy court. The filing of a court action to enable the recording of a notice of pending action, for order of attachment, receivership, Injunction, or other provisional remedies, shall not constitute a waiver or violation of the mediation and arbitration provisions. (2) BROKERS: Brokers shall not be obligated or compelled to medlate or arbitrate unless they agree to do so In writing. Any Broker(s) participating in mediation or arbitration shall not be deemed a party to the Agreement. 32. TERMS AND CONDITIONS OF OFFER: This is an offer to purchase the Property on the above terms and conditions. The liquidated damages paragraph or the arbitration of disputes paragraph Is Incorporated in this Agreement ff initialed by all parties or if incorporated by mutual agreement in a counter offer or addendum. if at least one but not all parties initial such paragraph(s), a counter offer is required until agreement is reached. Seller has the right to continue to offer the Property for sale and to accept any other offer at any time prior to notification of Acceptance. If this offer is accepted and Buyer subsequently defaults, Buyer may be responsible for payment of Brokers' compensation. This Agreement and any supplement, addendum or modification, including any Copy, may be-Signed in two or more counterparts, all of which shall constitute one and the same writing. 33. TIME OF ESSENCE; ENTIRE CONTRACT; CHANGES: Time Is of the essence. All understandings between the parties are Incorporated in this Agreement. Its terms are intended by the parties as a final, complete and exclusive expression of their Agreement with respect to its subject matter, and may not be contradicted by evidence of any prior agreement or contemporaneous oral agreement. If any provision of this Agreement is held to be ineffective or invalid, the remaining provisions will nevertheless be given full force and effect. Except as otherwise specified, this Agreement shall be interpreted and disputes shall be resolved in accordance wth the laws of the State of California. Neither this Agreement nor any provision in It may be extended, amended, modified, altered or changed, except In writing Signed by Buyer and Seller. 34. EXPIRATION OF OFFER. This offer shall be deemed revoked and the deposit shall be returned unless the offer is Signed by Seller and a Copy of the Signed offer is personally received by Buyer, or by who is authorized to receive It, by 5:00 PM on the third Day after this offer is signed by Buyer (or, if checked, ❑ by ❑ AM ❑ PM, on (date)). Buyer has read an ckno edges receipt of a Copy of the offer and agrees to the above confirmation of agency relationships. Date Date BUYER(- BUYER i Tha (Print m) (Print name) (Address) Additional Signature Addendum attached (CAR. Form ASA). 35. ACCEPTANCE OF OFFER: Seller warrants that Seller is the owner of the Property, or has the authority to execute this Agreement. Seller accepts the above offer, agrees to sell the Property on the above terms and condkions, and agrees to the above confirmation of agency relationships. Seller has read and acknowledges receipt of a Copy of this Agreement, and authorizes Broker to Deliver a Signed Copy to Buyer. ❑ (If checked) SUBJECT TO ATTACHED COUNTER OFFER (C.A.R. Form CO DATED: 5/19/2011/19/20 Date DaeusWnedtru. Date SELLER 994SELLER DocLSWed b)r David 3EB95CDIEB... ASV ~~tfl PA4 N1 (Print name) (Print name o179.E,,.,,=86475... (Address) ❑ Additional Signature Addendum attached (PAR. Form ASA). ( / ) Confirmation of Acceptance: A Copy of Signed Acceptance was personally received by Buyer or Buyer's authorized agent Initials on (date) at [3 AM [3 PM. A binding Agreement is created when a Copy of Signed Acceptance Is personally received by Buyer or Buyers authorized agent whether or not confirmed in this document. Completion of this confirmation is not legally required In order to create a binding Agreement; it is solely tended to evidence the date that Confirmation of Acceptance has occurre. ~ QDS Buyer's Initials ( ) ( ) Seller's Initials ( ) ( ) Copyright ®1990-2 0, CALIFORNIA ASSOCIATION OF REALTORS®, INC. Eau121 uBdaMB VLPA REVISE 10 (PAGE 9 OF 10) Reviewed by Date orPaaruBirr VACANT LAND PURCHASE AGREEMENT (VLPA PAGE 9 OF 10) City of Uldah Offer DocuSign Envelope ID: 4608FC4C-B48F-4C80-9322-3ADCF5593057 Property: 3495 Tavlor Dr. Date: May 18, 2011 REAL ESTATE BROKERS: A. Real Estate Brokers are not parties to the Agreement between Buyer and Seller. B. Agency relationships are confirmed as stated in paragraph 2. C. If specified in paragraph M(2), Agent who submitted the offer for Buyer acknowledges receipt of deposit. D. COOPERATING BROKER COMPENSATION: Listing Broker agrees to pay Cooperating Broker (Selling Firm) and Cooperating Broker agrees to accept, out of Listing Brokers proceeds in escrow: (1) the amount specified in the MILS, provided Cooperating Broker is a Participant of the MLS in which the Property is offered for sale or a reciprocal MLS; or (II) ❑ (if checked) the amount specified in a separate written agreement (C.A.R. Form CBC) between Listing Broker and Cooperating Broker. Declaration of License and Tax (C.A.R. Form DLT) may be used to document that tax reporting will be required or that an exemption exists. Real Estate Broker (Selling Finn) Coidyali 8 nke& undo R alt J DRE Lic. # 00928841 BY x~ ►eea Pomilia DRE Lie. # 01396567 Date Address 169 Mason St., Ste 300 City. Ukiah State CA Zip 95482 Telephone _!7071272-8860 Fax (707)462-3857 E-mail knomilla2nacffic.net Real Estate Broker (Listing Firm) coldweil Banker monde Realty DIRE Lic. # 00928841 By Kathleen Pomillat DRE Lic. # 01396567 Date Address 169 Mason St.. Ste 300 City Ukiah State Zip Telephone Fax E-mail ESCROW HOLDER ACKNOWLEDGMENT: Escrow Holder acknowledges receipt of a Copy of this Agreement, (if checked, ❑ a deposit in the amount of $ ) counter offer(s) numbered ❑ Sellers Statement of Information and Other , and agrees to act as Escrow Holder subject to paragraph 29 of this Agreement, any supplemental escrow instructions and the terms of Escrow Holders general provisions, if any. Escrow Holder is advised that the date of Confirmation of Acceptance of the Agreement as between Buyer and Seller Is Escrow Holder Escrow # By Dale Address Phone/Fax/E-mail Escrow Holder is licensed by the California Department of ❑ Corporations,❑ Insurance, Real Estate. License # PRESENTATION OF OFFER: ( ) Listing Broker presented this offer to Seller on (date). REJECTION OF OFFER: ( ) No counter offer is being made. This offer was rejected by Seller on (date). SellePs Initials N„ Published and BUS by: REAL ESTATE BUSINESS SERVICES, INC. a subsidlary of the CALIFORNIA ASSOCIATION OF REALTORS@ • 525 South Virgil Avenue, Los Angeles, California 90020 Revlewed by Date oPaoRiuxsn VLPA REVISED 4110 (PAGE 10 of 10) VACANT LAND PURCHASE AGREEMENT (VLPA PAGE 10 OF 10) City of Ukiah Offer DoWSign Envelope ID: 4608FC4C-B48F-4C80-9322-3ADCF5593057 CALIFORNIA ASSOCIATION ADDENDUM (C.A.R. Form ADM, Revised 10101) No. #1 The following terms and conditions are hereby incorporated in and made a part of the: ❑ Residential Purchase {agreement, ❑ Manufactured Home Purchase Agreement, ❑ Business Purchase Agreement, ❑ Residential Lease or Month-to-Month Rental Agreement, ® Vacant Land Purchase Agreement, ❑ Residential Income Property Purchase Agreement, ❑ Commercial Property Purchase Agreement, ❑ other 2) Buyer sh a11 214 18 ninetw 190) JZW to eertifn a negative declaration for the 8 +=hase of the torwerty in m mcliance with~CLOU. The foregoing termm condo ' ns are hereby agreed to, and the undersigned acknowledge receipt of a copy of this document. Date Date 5/19/2011 Buyer/Tenant Seller/Landlord tvJ.ty of Ukiah Dagi(l - ~1895CD4Ea... Buyer/Tena Seller/Landlord Amp Smith 9179AEA4DE96475.. Broker: Coldwell Banker Mendo Really, Inc. 169 Mason St., Ste 300 Ukiah, CA 95462 dated - Slav 18, 2011 , on property known as 3495 Taylor Dr. APN 8 184-150-01 The copyright laws of the United States (fitie 17 U.S. Code) forbid the unauthorized reproduction of this form, or any portion thereof, by photocopy machine or any other means, including facsimile or computerized formats, Copyright©1985-2001, CALIFORNIA ASSOCIATION OF REALTORS®, INC. ALL RIGHTS RESERVED. THIS FORM HAS BEEN APPROVED BY THE CALIFORNIA ASSOCIATION OF REALTORSS (C.A.R.). NO REPRESENTATION IS MADE AS TO THE LEGAL VALIDITY OR ADEQUACY OF ANY PROVISION IN ANY SPECIFIC TRANSACTION. A REAL ESTATE BROKER IS THE PERSON QUALIFIED TO ADVISE ON REAL ESTATE TRANSACTIONS. IF YOU DESIRE LEGAL OR TAX ADVICE, CONSULT AN APPROPRIATE PROFESSIONAL. This form is available for use by the entire real estate Industry. it Is not Intended to Identify the user as a REALTORS. REALTORS Is a registered collective membership mark which may be used only by members of the NATIONAL ASSOCIATION OF REALTORSS who subscribe to Its Code of Ethics. r Publlshed and Distributed by: U REAL ESTATE BUSINESS SERVICES, INC. a subslobiy ofthe Ca)fomisAssodaflon ofREALTORSS Reviewed by = 525 South VuglAvenue, Los Angeles, California 90020 Broker or Designee Date ADM41 REVISED 10101 (PAGE 1 OF 1) "O0"ORTURirv ADDENDUM (ADM41 PAGE 1 OF 1) Agent: Kathy Pomilla Phone: 707A62.5400 Fax: 707.462.3867 Prepared using zlpFomS software - Affac-hrri ent Attachment # AGREEMENT REGARDING REAL PROPERTY ACQUISITION This Agreement is entered on , 2011 ("Effective Date"), between the City of Ukiah ("City") and the Ukiah Valley Sanitation District ("District"). Collectively, the City and the District may be referred to herein as "the Parties." RECITALS: 1. Under a Participation Agreement, dated July 19, 1995, the City operates and maintains as a unified system the trunk sewer and collection system located in the City and the District and the wastewater treatment plant ("WWTP") located in the City. The City also bills and collects sewer fees for the District. All monthly sewer fees in the City and the District are deposited in the City/District Sewer Fund which is assigned Fund No. 612. The combined expenses of the unified sewer system are paid from this account. City and District connections fees are deposited into the City Sewer Capital Improvement Fund No. 620 and the District Capital Improvement Fund No. 650 respectively. 2. The City and the District jointly maintain Fund No. 614, Sewer Capital Projects Fund. This fund records capital improvement projects of the Wastewater Enterprise and is funded by revenue transferred from the Joint Operating Fund No. 612. 3. The City owns and operates the WWTP. On December 15, 2004, the City and the District entered Amendment No. 2 to the Participation Agreement which determines how the parties share the costs and benefits of a major upgrade and expansion of the WWTP. 4. On May 18, 2011, the City entered escrow on 43 acres of agricultural land ("the Property") located at 3495 Taylor Drive, Ukiah, CA, APN 184-150-01, and more particularly described in the attached Exhibit A in the amount of $340,000 plus 4.5% commission expense and all of the escrow fees and other closing costs, which are to be paid by Buyer under the Purchase Agreement. Purchase of this property will be made from the Joint City/District Fund 614, Sewer Capital Projects with the City paying 52.5% and the District paying 47.5% of the total costs listed above, both Parties agreeing to the terms of the purchase agreement. 5. Under Amendment No. 1 to the Participation Agreement, the City and the District must enter a separate written agreement for any sewer system expense which is a capital expenditure of more than $100,000 that was not included in an approved budget prior to the 1997/1998 fiscal year, other than for repair or replacement of existing facilities or equipment. 6. On terms and conditions as further stated herein, this agreement authorizes the City to expend funds from Fund No. 614 in the amount of the purchase price, real estate commission and closing costs from each Party's share of said fund. AGREEMENT: Wherefore, in consideration of and reliance upon the above recitals and the terms and conditions as further stated herein, the parties hereby agree as follows. 1. Use of Fund No. 614 for Purchase of Property located at 3495 Taylor Drive, Ukiah. The City may withdraw $355,300 for purchase price and real estate commission, and in the amount of escrow fees and other Buyer's closing costs to be determined upon close of escrow from Fund 614 to for the purchase of the property, with 52.5% of that amount to be contributed from the City's share of said fund and 47.5% of that amount to be contributed from the District's share of said fund. 2. Deposit of Proceeds in the Event of Disposition of All or Part of 3495 Taylor Drive Property During Term of Participation Agreement. In the event the City disposes of all or part of the 3495 Taylor Drive property, whether by sale, lease or any other means, it shall make a payment calculated in accordance with paragraph 4. In the event the City makes any use of all or part of the 3495 Taylor Drive Property other than for the operation, improvement or expansion of the WWTP ("unrelated use"), it shall pay for that use in accordance with paragraph 4. All such payments shall be deposited in Fund No. 614 and credited to the City and the District in proportion to their respective contributions to costs to acquire the Property. The District must give prior approval for any such disposition or unrelated use. (Collectively, "a triggering event.") 3. Payment for 3495 Taylor Drive Property Upon Termination of Participation Agreement. In the event that the Participation Agreement terminates for any reason, and as a result of such termination, the District no longer uses the WWTP to treat sewage from the District's collection system, the City shall pay directly to the District forty seven and one-half percent (47.5%) the fair market value of the Property still being used by the WWTP in accordance with paragraph 4.a and for the depreciated value of improvements in accordance with paragraph 4.b. If the City elects to sell the Property upon such termination of the Participation Agreement, the sale must comply with paragraph 4.c, and the City shall pay 47.5% of the sale proceeds directly to the District. 4. Fair Market Value Determination. a. Unless the parties agree to another method of determining fair market value, fair market value shall be based on the value of the Property in an unimproved condition determined within six months of a triggering event. The appraisal shall be made by an appraiser approved by the City and the District. Funds from Fund No. 614 shall be used to pay the appraisal fee. In the event the parties cannot agree on a single appraiser, they may each retain an appraiser at their own expense. If the appraised fair market values determined by the two appraisals are within 10% of each other, the fair market value shall be the average of the two appraisals. Otherwise, the two appraisers shall select a third appraiser to review both appraisals and decide which is the more accurate. The party whose appraisal is found less accurate shall pay the fee of the third appraiser. 2 b. The City shall pay for the depreciated value of improvements constructed on the Property prior to a triggering event. The depreciated value shall be determined by assigning a useful life to the improvements when they are completed and depreciating them, based on the construction cost, using the straight line method of depreciation. If the payment is made pursuant to paragraph 3, the City shall make its payment directly to the District, the amount of which shall be determined by multiplying the depreciated value of the improvements by a contribution percentage. "Contribution percentage" means a percentage determined by dividing the number of sewer service units in the District by the total number of sewer service units in the City and the District. This calculation shall be based on the number of sewer service units as of the date that the improvements were completed. c. If all or part of the Property is offered for sale on the open market in an arms length transaction, the City may not accept an offer that is less than 90% of the appraised value of the Property as determined herein, except that the appraisal shall be based on the Property in its improved condition, and the City shall not be liable for the depreciated value of the improvements or a contribution percentage as provided in paragraph 4.b. The proceeds of the sale permitted under this subparagraph (not the appraised fair market value) must be deposited in Fund No. 614 in proportion to each Party's contribution to the costs of acquisition or paid to the District, depending on whether the sale occurs under paragraph 2 or 3. 5. Income Produced by the Property to be Deposited in Fund No. 612. All proceeds from any lease on the property or any other income to the City produced by the Property shall be deposited in Fund No. 612. 6. Management of Property. The City shall manage the Property pursuant to the Participation Agreement and all expenses of owning the property shall be paid from Fund No. 612 Account. 7. Notice. Whenever written notice is required or permitted by this Agreement, it shall be deemed given when actually received, if delivered by personal delivery, fax, registered or certified mail or overnight courier, or 48 hours after deposit in the United States Mail with proper first class postage affixed thereto, when addressed or sent as follows: CITY OF UKIAH Attention: City Manager Ukiah Civic Center 300 Seminary Avenue Ukiah, CA. 95482 FAX: 463-6204 UKIAH VALLEY SANITATION DISTRICT Attention: District Manager 387 N. State St, Ste. 101 Ukiah, CA 95482 FAX: 707-462-4429 8. Integration. This Agreement together with the Participation Agreement, and Amendment Nos. 1 and 2, thereto, contain the entire agreement between the City and the District concerning the wastewater treatment plant and the City's operation of the sewer systems in the City and the District. Together, these agreements supercede and replace any other statements, agreements, or understandings between the Parties concerning the subject matter of this agreement. 9. Duplicate Originals. Two or more copies of this agreement may be executed by the Parties. Each such copy, bearing the original signatures of the Parties, shall be considered an original agreement, admissible in any administrative or judicial proceedings as evidence of the agreement between the Parties. 10. No Third Party Beneficiaries. The Parties intend this agreement for the sole benefit of the Parties and do not intend to confer any rights under the Agreements or any right to enforce the Agreements on any person or entity who is not a Party. WHEREFORE, the Parties have entered this Agreement on the Effective Date. CTTY OF UKIAH By Jane Chambers, City Manager ATTEST: JoAnne Currie, City Clerk Approved as to form: David J. Rapport, City Attorney 4 UKIAH VALLEY SANITATION DISTRICT By: Rick Kennedy, District Manager Approved as to form: Jeanine Nadel, County Counsel 5 Cicy nJ IZ-1kia a ITEM NO.: 12b MEETING DATE: AGENDA SUMMARY REPORT August 3, 2011 SUBJECT: RECEIVE AN UPDATED REPORT AND PROVIDE DIRECTION REGARDING ANTON STADIUM CONSTRUCTION DUE TO EXTENSION OF TIME TO COMPLETE PROJECT. Background: The primary funding source for the Anton Stadium project is a $500,000 grant received from the State Department of Parks and Recreation. The original grant terms required the completion of the project by the end of 2011 in order to meet the liquidation deadline of June 30, 2012. Under a previous discussion with Council based in part on limited time and funds to complete the Anton Stadium Project, Staff brought forward Change Order #1 (Attachment # 1) which consisted of some additions and deductions from the original award of contract to Ferranti Construction. The main deduction approved by Council resulted in a savings of $60,033 by changing to a wood product (Alaskan Yellow Cedar) instead of pre-cast concrete for the decking (floor and riser). This savings allowed for additional phases of the project to be completed by contract labor including the entryway access, accessible parking and interior steel framed walls. In addition to not being easily delivered through volunteers, these items are critical to satisfying the terms of the State Grant and code requirements. This route leaves the seating, parking lot, and interior finish work consisting of items like bathroom partitions & accessories, wall/floor coverings, plumbing, fire suppression, and electrical unfunded, but some of which are more suitable to be completed by volunteers. Staff has reached out to potential contacts that might be willing to help and has some limited commitments. Under the current plan, Staff is preparing to bring for Council's consideration, plans and specifications to have all the remaining work bid out as a series of alternate items in an effort to line up potential contract labor where commitments from volunteers are lacking and discuss strategies about funding for this work. Discussion: As reported by the City Manager at the July 20th City Council meeting, the City received written notice from the State Park Grants Office earlier in the day that the RZH Grant Program including the Anton Stadium grant has been extended to March 31, 2015 (Attachment #2). With this new timeline, staff is bringing this item back to provide Council with the opportunity for additional discussion and direction if warranted. Recommended Action(s): RECEIVE AN UPDATED REPORT AND PROVIDE DIRECTION REGARDING ANTON STADIUM CONSTRUCTION DUE TO EXTENSION OF TIME TO COMPLETE PROJECT. Alternative Council Option(s): N/A Citizens advised: Anton Stadium Stakeholders Requested by: N/A Prepared by: Guy Mills, Project and Grant Administrator, and Sage Sangiacomo, Assistant City Manager Coordinated with: Jane Chambers, City Manager Attachments: 1. Change Order #1 2. Notice from State Park Grants Office regardinq new time extension Approved: J ne Chap bers, City Manager Staff has been in contact with Ferranti Construction and the Stakeholders about the time extension and is revisiting past decision points and strategies for completing the project. Given the recent notification of the time extension, staff is working diligently to gather this information and will present all of which becomes available the night of this report. Continued considerations that should be part of all decision points for the project include (but not limited to): • Funding • Volunteer resources • Project quality • Contract with Ferranti Construction Current momentum to complete the project Staff resources and time • Additional costs and/or work associated with alternatives including engineering, architectural, materials, and construction labor. Fiscal Impact: Budget Amendment Required ❑ Budgeted FY 11/12 1-1 New Appropriation ❑X Not Applicable F Amount Budgeted Source of Funds (title and Account Number Addit. Appropriation Requested $ $ ATTACHMENT { CITY OF UKIAH CONTRACT CHANGE ORDER ORDER NO. 1 DATE: June 2, 2011 Contract for (Description of Facility): Owner: City of Ukiah, 300 Seminary Avenue, Ukiah, Califon To (Contractor): Ferranti Construction Inc. PO Box 259, Re You are hereby directed to make the herein described changes work not included in the contract plans and specifications: Change requested by: City Engineer. contract plans and specifications or do the following described Description of Changes - Itemized Breakdown ESTIMATED DECREASE To Contract Amount ESTIMATED INCREASE To Contract Amount 1. ADA Concrete Walks, Ramps and Steps $32,295.00 2. ADA Parking; Grade, Base & Pave. $19,400.00 3. ADA Signage, Post, Symbols & Striping. $3,870.00 4. Chain Link Fence & Slide Gate $7,640.00 5. Complete rough interior framing, not included: drywall, electrical, insulation, doors & partitions. $36,760.00 5. Painting of Red Metal. $ 8610.00 5. Panic Hardware. $2,860.00 5. Precast concrete change to wood. $60,033.00 5. Ridgit insulation. $4,800.00 5. Windows. $6,000.00 ESTIMATED NET CHANGE IN CONTRACT PRICE $40,602.00 Justification (Detailed and Concise): These items are a result of value engineering to decrease cost of original scope, and add scope due to the cost savings. The amount of the Contract will be (anew/increased/unged) by the estimated sum of: forty thousand six hundred two dollars and no cents (40,602.00). The contract total including this and previous Change Orders will be: five hundred fort-three thousand seven hundred seventy-eight dollars and no cents ($543,778.00). The contract period provided for completion will be (iner-e sed/deefeased/unchanged): N/A. This document will become a supplement to the contract and all provisions will apply hereto. Approved By: 0 61V'111 ity Manager) Date/ Accepted: ~.~1 _ ".tJU►.ou.'~ GG e -6 /Z10 (Contractor) Date State of California . Natural Resources Edmund G. Brown Jr., Governor DEPARTMENT OF PARKS AND RECREATION • P.O. Box 942896 • Sacramento, CA 94296.0001 Ruth Coleman, Director (916) 653-7423 Attachment # July 20, 2011 - Jane Chambers, City Manager City of Ukiah JUL 2 0 2011 300 Seminary Ave Ukiah, CA 95482 Dear Proposition 40 Grant Recipient, The recently enacted state budget provides additional time for Proposition 40 grant recipients to complete their projects as shown on the chart below. If you need more information about your contract(s), please contact your Project Officer. --Original -Programs -Encumbrance -Paperwork -Liquidation liquidation Affected Deadline submission date deadline (Contracts must be fully deadline executed b this date : June 30, Urban Park June 30, 2013 March 31, 2015 June 30, 2015 2010 Act, Murray (previously Hayden extended to June 30, 2011 June 30, RZH Block, June 30, 2013 March 31, 2015 June 30, 2015 2011 Per Capita June 30, State Urban June 30, 2013 March 31, 2015 June 30, 2015 2012 Parks and Healthy Communities, Youth Soccer, RZH Urban, RZH Nonurban The Office of Grants and Local Services (OGALS) wants to ensure an efficient extension of these contracts. Please see below to determine what action is required by your agency. Per Capita and RZH Block contracts with the entire contract balance allocated to current and completed proiects - OGALS will automatically extend your contract. You may continue to incur eligible costs. OGALS is working with the State Controller's Office and the Department of Finance to determine the amount of funds that need to be extended. You may continue to incur eligible costs on current projects during this time. Per Capita and RZH Block contracts with balances not allocated to proiects If you have funds that have not yet been allocated to projects that you do not intend to spend, please indicate so in a letter to your Project Officer by August 17, 2011. If you do intend to allocate these funds to projects,-your agency will receive anew contract after submitting project applications, to allocate the remaining funds. Project applications allocating the remaining funds must be received in OGALS by March 1, 2012. If you have not submitted any applicationts) by this date, the funds will no longer be available because the 2011 Budget Act requires that all projects receiving extensions be repo,rted:to.the Legislature by April 1, 2012. t Fdr' fl com etitive ro ram contracts, OGALS will automatically extend your grant cot °ct. You may.continue to incur eligible costs. As soon as OGALS receives u~ s; d budget information from the State Controller's Office, OGALS will issue and s u„a,new-contract"16 the remaining balance of your contract. Once your contract is fully encumbered OGALS can make additional payments. Sincerely, Patti Keating, Chief Office of Grants and Local Services C i ITEM NO.: 12c MEETING DATE: UKIAH CITY COUNCIL AGENDA SUMMARY REPORT August 3, 2011 SUBJECT: AUTHORIZATION TO INTERVENE IN APPEAL TO U.S. POSTAL REGULATORY COMMISSION OF DECISION TO CLOSE DOWNTOWN POST OFFICE SUMMARY: On July 6, 2011, the City Council approved a letter from the Mayor appealing the decision to close the downtown post office. That appeal was sent to the Vice President Facilities in South San Francisco. The Save the Post Office Committee filed a separate appeal to the U.S. Postal Regulatory Commission in Washington, D.C. On July 20, 2011, the Commission notified the Committee that it has instituted a proceeding to consider the Committee's appeal and assigned Docket No. A2011-21 to the proceeding. The notice and order issued by the Regulatory Commission establishes a schedule for the proceeding. According to the schedule, anyone other than the Committee that wants to participate in the appeal can file a petition to intervene by August 12, 2011. The Mayor and the Committee have requested the City Council to consider authorizing a petition to intervene on behalf of the City. They believe the City's participation will improve the chances of receiving a favorable decision from the Commission. If the City intervenes, its deadline for filing an initial brief in support of the Committee's petition must be filed by August 18, 2011. Its brief in reply to the answering brief filed by the Postal Service must be filed by September 22, 2011. The Regulatory Commission is required by its regulations to make a decision on the appeal by November 10, 2011. If the City Council authorizes the notice to intervene, the City Attorney would file the notice by August 12, 2011. He would coordinate with the Committee to avoid duplication in any additional filings, including initial and reply briefs. Fiscal Impact: Budgeted FY 10/11 F-1 New Appropriation Not Applicable Budget Amendment Required The City Attorney's time is the primary cost associated with this item. Recommended Action(s): Authorize the City Attorney to file a notice to intervene in the appeal to the U.S. Postal Regulatory Commission and to file briefs in support of the appeal. Alternative Council Option(s): Take no action or provide alternative direction. Citizens advised: Save Ukiah Post Office Committee Requested by: Mayor Mari Rodin; Save Ukiah Post Office Committee Prepared by: David J. Rapport, City Attorney Coordinated with: Mayor Rodin, Jane Chambers, City Manager, and Sage Sangiacomo, Assistant City Manager Attachments: N/A Approved: Jan Chaml)rs, City Manager City ref `Zt ki ah ITEM NO.: 13a MEETING DATE: AGENDA SUMMARY REPORT August 3, 2011 SUBJECT: ADOPT AS AN URGENCY ORDINANCE AN ORDINANCE PROVIDING FOR THE REINSTATEMENT AND CONTINUATION OF THE POWERS OF THE UKIAH REDEVELOPMENT AGENCY AND CONSIDER ANY OTHER RELATED ISSUES TO THE STATE'S EFFORTS TO TAKE LOCAL TAX REVENUE USED TO FUND JOB RETENTION/CREATION, ECONOMIC DEVELOPMENT, PUBLIC INFRASTRUCTURE AND LOW/MODERATE HOUSING. Summary: At the direction of the Agency Board and the request of the City Council, the attached resolution authorizing the continuation of the Ukiah Redevelopment Agency is presented for the Ukiah City Council's consideration. Background: On Tuesday, July 28, the Legislature approved the latest budget proposal (SB 87) and sent the previously passed trailer bills, AB 1X 26 (Elimination Bill) and 27 (Continuation Bill), to the Governor. The trailer bills were subsequently signed by the Governor. Under the legislation, redevelopment agencies will need to decide whether they should dissolve in accordance with AB1X 26, or turn over local property tax dollars to the State in accordance with AB1X 27 in order to continue Agency activities. The California Redevelopment Association (CRA) and the League of California Cities have indicated that they will be filing legal actions in efforts to invalidate the legislation and obtain a stay on implementation. Notwithstanding the success of legal action, as of the effective date of the legislation, and continuing until the city adopts an ordinance committing it to participate in the payment program, redevelopment agencies are not permitted to: enter into new contracts, amend contracts, amend redevelopment plans, incur new debt, sell, lease or encumber property, acquire property, or commence eminent domain proceedings. If a redevelopment agency decides to make payment to the State, the city must adopt an ordinance (i.e., conduct a second reading) by no later than November 1, 2011, committing the Agency to make the required payments to the county auditor-controller. If a redevelopment agency does not choose to participate in the Continued on Page 2 Recommended Action(s): ADOPT AS AN URGENCY ORDINANCE, BY NOT LESS THAN A 4/5 VOTE OF THE CITY COUNCIL, AN ORDINANCE PROVIDING FOR THE REINSTATEMENT AND CONTINUATION OF THE POWERS OF THE UKIAH REDEVELOPMENT AGENCY AND CONSIDER ANY OTHER RELATED ISSUES TO THE STATE'S EFFORTS TO TAKE LOCAL TAX REVENUE USED TO FUND JOB RETENTION/CREATION, ECONOMIC DEVELOPMENT, PUBLIC INFRASTRUCTURE AND LOW/MODERATE HOUSING. Alternative Council Option(s): Consider the ordinance as a non urgency item and/or remand to Staff with further direction. Citizens advised: N/A Requested by: Ukiah Redevelopment Agency and Ukiah City Council Prepared by: Sage Sangiacomo, Assistant City Manager, Guy Mills, Project & Grant Administrator, and RDA Legal and Financial Specialist Coordinated with: Jane Chambers, City Manager and David Rapport, City Attorney Attachments: 1. Continuation Ordinance Approved: %-z, _ Ja e Ch, bers, City Manaagi3 payment program, the legislation provides that the agency will be dissolved as of October 1, 2011. In such case, the city may elect to be the successor to the agency, and an oversight Board will direct the disposition of agency assets with proceeds to be transferred to the county auditor-controller for distribution as directed by the State. Potential Impacts: On July 6, 2011, the Ukiah Redevelopment Agency discussed and considered the impacts of the legislation including: • All Agency's funds and assets would be turned over to "successor agency" under the oversight of the State • All of the Agency's efforts to eliminate blight, create jobs, and boost economic development would cease • Funding to preserve, rehabilitate and create Low and Moderate Housing would be lost • All assets/property will be liquidated • Major implications to the City's budget due to shared staffing resources; requiring major restructuring of the organization The State's actions to eliminate redevelopment and/or take local property tax revenue immediately threatens the viability of the following programs and projects most of which have been approved in the Ukiah Redevelopment Agency's Fiscal Year 11/12 Budget: Category Agency Funding Levera ed Investment Construction Jobs Permanent Jobs Fagade Improvement Program $150,000 $150,000 4 Business Improvement Program $150,000 $150,000 4 10 Traffic & Infrastructure Improvements $4,500,000 70 State Street Crosswak & Road Improvements/Repairs $250,000 4 Remediation of 11 acre Perkins Street Depot Property $1,000,000 $3,260,000 15 Selection of site for new Ukiah Courthouse $128,000,000 1168 90 Capital Improvement for local school $1,261,881 17 Mobile home Rent Control Program $20,000 Low/Moderate Income Senior Housing on Cleveland Lane $1,000,000 $4,250,000 56 2 Low/Moderate Student Housing Project on Main Street $1,000,000 $3,375,000 44 2 Joint County/City Low/Moderate Income Family Housing Project Staff Support $3,000,000 25 1 Development of other Low/Moderate Housing $2,700,000 $6,250,000 82 3 Business Attraction Projects $25,000,000 365 250 Ukiah Green Training/Education Program w/Solar Living Institute $20,000 $30,000 1 Ukiah Main Street Program Activities $30,000 $119,000 2 Economic Development & Finance Corporation Actidies $10,000 $30,000 2 Redevelopment of Palace Hotel TBD TBD Grant Support for ReBILD Program & Infrastructure Projects Staff Support $1,140,000 6 10 Totals $12,091,881 $174,754,000 1860 373 In summary, the Agency funding in jeopardy is estimated at $12,091,881 and the amount of leveraged investment (non-Agency funding) is estimated at $174,754,000. These projects and programs represent approximately 1,860 construction related jobs and 373 new/retained permanent jobs. (Job numbers were calculated utilizing the CRA Job Calculator Tool developed by Chico State University.) Continuation Ordinance Discussion: Given the significant economic implications for the community, the Agency Board directed staff to return to the City Council with a Continuation Ordinance (Attachment #1). The Ordinance provides that the Ukiah Redevelopment Agency will make the necessary payments under AB1X 27. The estimates published by the California Redevelopment Association for the Ukiah Redevelopment Agency include an initial payment in the amount of $1,780,798 in the first year and an annual payment of approximately $419,011. The payments will be due beginning January 1, 2012. The Ordinance will become invalid should a stay be issued or the legislation is determined to be unconstitutional. In addition, staff is working to determine if the payment amount may be appealed under the provisions of AB1X 27 given the recent increase in debt related to the FY10/11 bond issuance. The Ordinance allows for the payment amount to be adjusted accordingly. In an effort to raise/encumber the necessary funds to make the initial payment, the Agency may use the 20% Housing Set Aside for FY 11/12 which has been suspended by the legislation. This will ensure the continuation of the Agency's Low and Moderate Housing Program for future years and is only suspended for the initial year. Staff continues to monitor litigation and legislative developments. In addition, staff is working with our RDA Legal, Project, and Fiscal consultants to analyze the impact of the legislation and craft the appropriate recommendations for the City's/Agency's consideration as warranted. Given the recent nature of the action by the State, staff is working to prepare the data for consideration including cash flow projections. This information along with up-to-date legislative / legal actions and additional recommendations for consideration will be presented to the Council at the August 3 meeting. Fiscal Impact: 0 Budgeted FY 11/12 XD New Appropriation 0 Not Applicable XD Budget Amendment Amount Budgeted Source of Funds Account Number State Payment $0 Local Property Taxes TBD Year 1: $1,780,798; $419,011 Annually ATTACHMENT URGENCY ORDINANCE ORDINANCE NO. AN URGENCY ORDINANCE OF THE CITY COUNCIL OF THE CITY OF UKIAH, CALIFORNIA, DETERMINING IT WILL COMPLY WITH THE VOLUNTARY ALTERNATIVE REDEVELOPMENT PROGRAM PURSUANT TO PART 1.9 OF DIVISION 24 OF THE CALIFORNIA HEALTH AND SAFETY CODE IN ORDER TO PERMIT THE CONTINUED EXISTENCE AND OPERATION OF THE REDEVELOPMENT AGENCY OF THE CITY OF UKIAH WHEREAS, the City Council of the City of Ukiah ("City") approved and adopted the Redevelopment Plan for the Ukiah Redevelopment Project ("Redevelopment Plan") covering certain properties within the City (the "Project Area"); and WHEREAS, the Redevelopment Agency of the City of Ukiah ("Agency") is engaged in activities to execute and implement the Redevelopment Plan pursuant to the provisions of the California Community Redevelopment Law (Health and Safety Code § 33000, et sec ("CRL"); and WHEREAS, since adoption of the Redevelopment Plan, the Agency has undertaken redevelopment projects in the Project Area to eliminate blight, to improve public facilities and infrastructure, to renovate and construct affordable housing, and to enter into partnerships with private industries to create jobs and expand the local economy; and WHEREAS, over the next few years, the Agency hopes to implement a variety of redevelopment projects and programs to continue to eliminate and prevent blight, stimulate and expand the Project Area's economic growth, create and develop local job opportunities and alleviate deficiencies in public infrastructure, to name a few; and WHEREAS, as part of the 2011-2012 State budget bill, the California Legislature has recently enacted, and the Governor has signed, companion bills AB 1 X 26 and AB 1 X 27, requiring that each redevelopment agency be dissolved unless the community that created it enacts an ordinance committing it to making certain payments; and WHEREAS, specifically, AB 1X 26 prohibits agencies from taking numerous actions, effective immediately and purportedly retroactively, and additionally provides that agencies are deemed to be dissolved as of October 1, 2011; and WHEREAS, AB 1X 27 provides that a community may participate in an "Alternative Voluntary Redevelopment Program," in order to enable a redevelopment agency within that community to remain in existence and carry out the provisions of the CRL, by enacting an ordinance agreeing to comply with Part 1.9 of Division 24 of the Health and Safety Code; and 1 82661.00001\652726 1.1 WHEREAS, the Alternative Voluntary Redevelopment Program requires that the community agree by ordinance to remit specified annual amounts to the county auditor-controller; and WHEREAS, under the threat of dissolution pursuant to AB IX 26, and upon the contingencies and reservations set forth herein, the City shall make the Fiscal Year 2011-2012 community remittance, currently estimated to be One Million Seven Hundred Eighty Thousand Seven Hundred Ninety-Eight Dollars ($1,780,798), as well as the subsequent annual community remittances as set forth in the CRL; and WHEREAS, the City reserves the right to appeal the California Director of Finance's determination of the Fiscal Year 2011-2012 community remittance, as provided in Health and Safety Code Section 34194; and WHEREAS, City understands and believes that an action challenging the constitutionality of AB 1 X 26 and AB 1 X 27 will be filed on behalf of cities, counties and redevelopment agencies; and WHEREAS, while the City currently intends to make these community remittances, they shall be made under protest and without prejudice to the City's right to recover such amounts and interest thereon, to the extent there is a final determination that AB IX 26 and AB IX 27 are unconstitutional; and WHEREAS, the City reserves the right, regardless of any community remittance made pursuant to this Ordinance, to challenge the legality of AB 1 X 26 and AB 1 X 27; and WHEREAS, to the extent a court of competent jurisdiction enjoins, restrains, or grants a stay on the effectiveness of the Alternative Voluntary Redevelopment Program's payment obligation of AB 1 X 26 and AB 1 X 27, the City shall not be obligated to make any community remittance for the duration of such injunction, restraint, or stay; and WHEREAS, all other legal prerequisites to the adoption of this Ordinance have occurred. THE CITY COUNCIL OF THE CITY OF UKIAH, CALIFORNIA, DOES ORDAIN AS FOLLOWS: Section 1. Recitals. The Recitals set forth above are true and correct and incorporated herein by reference. Section 2. Participation in the Alternative Voluntary Redevelopment Program. In accordance with Health and Safety Code Section 34193, and based on the Recitals set forth above, the City Council hereby determines that the City shall comply with the provisions of Part 1.9 of Division 24 of the Health and Safety Code, as enacted by AB 1X 27. Section 3. Payment Under Protest. Except as set forth in Section 4, below, the City Council hereby determines that the City shall make the community remittances set forth in Health and Safety Code section 34194 et seq. 2 82661.00001\652726 1.1 Section 4. Effect of Stay or Determination of Invalidity. City shall not make any community remittance in the event a court of competent jurisdiction either grants a stay on the enforcement of AB IX 26 and AB IX 27 or determines that AB IX 26 and AB IX 27 are unconstitutional and therefore invalid, and all appeals therefrom are exhausted or unsuccessful, or time for filing an appeal therefrom has lapsed. Any community remittance shall be made under protest and without prejudice to the City's right to recover such amount and interest thereon in the event that there is a final determination that AB 1 X 26 and AB 1 X 27 are unconstitutional. If there is a final determination that AB 1 X 26 and AB 1 X 27 are invalid, this Ordinance shall be deemed to be null and void and of no further force or effect. Section 5. Implementation. The City Council hereby authorizes and directs the City Manager to take any action and execute any documents necessary to implement this Ordinance, including but not limited to notifying the Mendocino County Auditor-Controller, the Controller of the State of California, and the California Department of Finance of the adoption of this Ordinance and the City's agreement to comply with the provisions of Part 1.9 of Division 24 of the Health and Safety Code, as set forth in AB 1X 27. Section 6. Additional Understandings and Intent. It is the understanding and intent of the City Council that, once the Agency is again authorized to enter into agreements under the CRL, the City will enter into an agreement with the Agency as authorized pursuant to Section 34194.2, whereby the Agency will transfer annual portions of its tax increment to the City in amounts not to exceed the annual community remittance payments to enable the City, directly or indirectly, to make the annual remittance payments. The City Council does not intend, by enactment of this Ordinance, to pledge any of its general fund revenues or assets to make the remittance payments. Section 7. CEQA. The City Council finds, under Title 14 of the California Code of Regulations, Section 15378(b)(4), that this Ordinance is exempt from the requirements of the California Environmental Quality Act ("CEQA") in that it is not a "project," but instead consists of the creation and continuation of a governmental funding mechanism for potential future projects and programs, and does not commit funds to any specific project or program. The City Council, therefore, directs that a Notice of Exemption be filed with the County Clerk of the County of Mendocino in accordance with CEQA Guidelines. Section 8. Custodian of Records. The documents and materials that constitute the record of proceedings on which these findings are based are located at the City Clerk's office located at 300 Seminary Avenue, Ukiah, California 95482. The custodian for these records is City Clerk JoAnne M. Currie. Section 9. Severability. If any provision of this Ordinance or the application thereof to any person or circumstance is held invalid, such invalidity shall not affect other provisions or applications of this Ordinance which can be given effect without the invalid provision or application, and to this end the provisions of this Ordinance are severable. The City Council hereby declares that it would have adopted this Ordinance irrespective of the invalidity of any particular portion thereof. 3 82661.00001\652726 1.1 Section 10. Certification; Publication. The City Clerk shall certify to the adoption of this Ordinance and cause it, or a summary of it, to be published once within 15 days of adoption in a newspaper of general circulation printed and published within the City of Ukiah and shall post a certified copy of this Ordinance, including the vote for and against the same, in the Office of the City Clerk in accordance with Government Code § 36933. Section 11. Findings. The adoption of this Urgency Ordinance is necessary for the immediate protection of the public peace, health and safety. In accordance with California Government Code Section 36937 and in order to protect the public peace, health and safety, the City Council of the City of Ukiah finds and determines as follows: (a) AB IX 26 prohibits agencies from taking numerous actions, until the City Council adopts an ordinance agreeing to comply with Part 1.9 of Division 24 of the Health and Safety Code, including, but not limited to, incurring any new monetary or legal obligations or expanding any existing monetary or legal obligations, entering into agreements with any person for any purpose or amending or modifying any existing agreements and taking any action with respect to a redevelopment plan; (b) Prior to the enactment of an ordinance agreeing to comply with Part 1.9 of Division 24 of the Health and Safety Code, the Agency will be unable to continue efforts to eliminate and prevent blight (including the remediation of contaminated property owned or under the control of the North Coast Railroad Authority), stimulate and expand the Project Area's economic growth, create and develop local job opportunities and alleviate deficiencies in public infrastructure; (c) Blighting conditions in the Project Area constitute substantial threats to public peace, health and safety, and are so prevalent they cannot be eliminated without Agency action, including, but not limited to, the use of Agency funds and authorization of redevelopment projects and programs; (d) During the current economic crisis, the Agency must have the ability to act and continue the efforts set forth in (b) above. The Agency must have all tools available in order to eliminate and prevent blighting conditions, including implementation of the Agency's economic development programs, including the provision of infrastructure to serve the Redwood Business/Airport Industrial Park, which is vital to the economic revitalization of the community. (e) The Agency is actively engaged in efforts to rehabilitate housing units, to provide assistance for property improvements and to provide safe and affordable housing. Adoption of this Urgency Ordinance will permit the Agency to continue these efforts immediately. Section 12. Effective Date. The City Council hereby declares, on the basis of the findings set forth above, that an emergency exists and that this Ordinance is necessary to preserve the public peace, health and safety. Accordingly, this Ordinance is adopted as an emergency ordinance and shall take effect and be in force immediately upon its adoption. 4 82661.00001 \6527261.1 PASSED AND ADOPTED at a regular meeting of the City Council on the 3rd day of August, 2011, by the following roll call vote: AYES: NAYS: ABSENT: ABSTAIN: ATTEST: JoAnne Currie, City Clerk Mari Rodin, Mayor 5 82661.00001\652726 1.1 City of Ukiah ITEM NO.: 13b MEETING DATE: August 3, 2011 AGENDA SUMMARY REPORT SUBJECT: (1) ADOPTION OF RESOLUTION AUTHORIZING THE CITY OF UKIAH TO SUBMIT AN APPLICATION TO THE CALIFORNIA STATE DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT FOR FUNDING UNDER THE HOME INVESTMENT PARTNERSHIPS PROGRAM AND, IF SELECTED, AUTHORIZE THE CITY MANAGER TO EXECUTE A STANDARD AGREEMENT, ANY AMENDMENTS THERETO, AND ANY RELATED DOCUMENTS NECESSARY TO PARTICIPATE IN THE HOME INVESTMENT PARTNERSHIPS PROGRAM; (2) APPROVE CORRESPONDING BUDGET REVENUE AND EXPENSE AMENDMENTS, IF AWARDED; AND (3) APPROVE THE REVISED FIRST-TIME HOMEBUYERS PROGRAM GUIDELINES FOR THE CITY OF UKIAH FIRST-TIME HOMEBUYERS PROGRAM. Background: The Community Development Commission of Mendocino County (the "CDC") administers the Home Investment Partnerships (HOME) Program for the City of Ukiah. The HOME program provides funding for projects and programs that create and retain affordable housing. Discussion: This year's HOME Notice of Funding Availability (NOFA) was issued on June 1, 2011 with applications due by August 16, 2011. This year's NOFA has a maximum of $700,000 available per jurisdiction for the Programs side and up to a maximum of $4,000,000 for the Projects side (rental new construction projects). Eligible Programs activities include the following: First-Time Homebuyer (FTHB) program, Owner-Occupied Housing Rehabilitation program, Tenant Based Rental Assistance (TBRA) program, a Housing Combination Program consisting of OOR and FTHB, or a split between two programs. In response to the 2011 NOFA, CDC has prepared an application for an FTHB program to be operated in City of Ukiah incorporated areas. Proposed in this year's application is a continuation of a successful City of Ukiah HOME FTHB program CDC administered for the City from 2009-2011. Nine loans were made under this program. During the period CDC provided homeownership counseling to 79 residents. Lenders reported strong demand from their clients for the City's 2009-11 FTHB program. It is expected funding of a new City HOME FTHB grant would lead to the financing of at least an additional six loans to first-time homebuyers. Continued on page 2 Recommended Action(s): (1) Adopt the Resolution authorizing the City of Ukiah to submit an application to the California State Department of Housing and Community Development for funding under the HOME Investment Partnerships Program and, if selected, authorize the City Manager to execute a standard agreement, any amendments thereto, and any related documents necessary to participate in the HOME Investment Partnerships Program; (2) Approve corresponding budget revenue and expense amendments, if awarded; and (3) Approve the revised First-Time Homebuyers Program Guidelines for the City of Ukiah First-Time Homebuyers Program. Alternative Council Option(s): Remand to staff with alternative action. Citizens advised: N/A Requested by: N/A Prepared by: Sage Sangiacomo, Assistant City Manager, and Craig Schlatter, CDC Coordinated with: Jane Chambers, City Manager Attachments: 1. Resolution 2. Draft First-Time Home Buvers Guidelines Approved: t~ J e Ch bers, City Manager HOME regulations require a resolution by the City Council to authorize submittal of an application. The following is requested: First-Time Homebuyers (FTHB) Program FTHB Activity Delivery General Administration Total $638,138 $ 44,362 17,500 $700,000 The City FTHB program would provide deferred payment (no payments on principal and interest), three percent (3%) interest rate loans, amortized over 30 years, to qualifying low-income first-time homebuyers. The FTHB loan would be recorded in second position behind a loan with a traditional lender. Commonly referred to as a "silent second," the FTHB loan provides gap financing for the low-income homebuyer between what they qualify for from the first lender and the purchase price. An example is below: Purchase price of home = $225,000 Homebuyer qualifies for = $150,000 Gap $(75,000) 4 City HOME FTHB loan = $75,000 The FTHB program could have economic development benefits for the City as well. In CDC's experience administering HOME and Community Development Block Grant (CDBG) first-time homebuyer programs for Mendocino County jurisdictions since 1997, most lenders participating in the program are locally based. The program provides local lenders with additional clients who would otherwise not qualify. Furthermore, the loans benefit the local real estate industry and neighborhood property values. HOME provides funding to cities, counties and nonprofit community housing development organizations (CHDOs) for projects and programs in support of housing rehabilitation, acquisition, tenant-based rental assistance, new construction, acquisition/rehabilitation, and predevelopment loans. Activities must benefit "lower-income" renters or owners, defined as those individuals earning 80% of Area Median Income in Mendocino County or less. In addition to considering the resolution for the grant application, Council is also requested to consider the compliance modifications to the City's FTHB Guidelines as presented in Attachment #2. Fiscal Impact: H Budgeted FY 11/12 F-1 New Appropriation F-1 Not Applicable ❑x Budget Amendment Required If awarded the grant, the corresponding revenue and expenditure accounts will be needed. Account Name Source of Funds (title) Account Number Addit. Appropriation Requested Contingent on Grant Award First-Time Home Buyers Program HOME Grant TBD $638,138 FTHB Activity Deliver HOME Grant TBD $ 44,362 General Administration HOME Grant TBD $ 17,500 ATTACHMENT f RESOLUTION NO. 2011- RESOLUTION OF THE CITY COUNCIL OF THE CITY OF UKIAH AUTHORIZING THE SUBMITTAL OF AN APPLICATION TO THE CALIFORNIA STATE DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT FOR FUNDING UNDER THE HOME INVESTMENT PARTNERSHIPS PROGRAM; AND IF SELECTED, THE EXECUTION OF A STANDARD AGREEMENT, ANY AMENDMENTS THERETO, AND ANY RELATED DOCUMENTS NECESSARY TO PARTICIPATE IN THE HOME INVESTMENT PARTNERSHIPS PROGRAM. WHEREAS, The California Department of Housing and Community Development (the "Department") is authorized to allocate HOME Investment Partnerships Program ("HOME") funds made available from the U.S. Department of Housing and Urban Development ("HUD"). HOME funds are to be used for the purposes set forth in Title II of the Cranston-Gonzalez National Affordable Housing Act of 1990, in federal implementing regulations set forth in Title 24 of the Code of Federal Regulations, part 92, and in Title 25 of the California Code of Regulations commencing with section 8200; and WHEREAS, On June 1, 2011 the Department issued a 2011 Notice of Funding Availability announcing the availability of funds under the HOME program (the "NOFA"); and WHEREAS, in response to the 2011 NOFA, City of Ukiah, a political subdivision of the State of California (the "Applicant"), wishes to apply to the Department for, and receive an allocation of, HOME funds. NOW, THEREFORE, BE IT RESOLVED that the Ukiah City Council as follows: Section 1 In response to the 2011 NOFA, the Applicant shall submit an application to the Department to participate in the HOME program and for an allocation of funds not to exceed Seven Hundred Thousand Dollars ($700,000) for the following activities: First Time Homebuyers (FTHB) Program $638,138 FTHB Activity Delivery $ 44,362 General Administration 17,500 Total $700,000 FTHB activities will be located in incorporated area of the City of Ukiah. Section 2 If the application for funding is approved, then the Applicant hereby agrees to use the HOME funds for eligible activities in the manner presented in its application as approved by the Department in accordance with the statutes and regulations cited above. The Applicant may also execute a standard agreement, any amendments thereto, and any and all other documents or instruments necessary or required by the Department or HUD for participation in the HOME program (collectively, the required documents). Section 3 The applicant authorizes the City Manager or his/her designee(s) to execute, in the name of the applicant, the required documents. Section 4 The City of Ukiah authorizes the Executive Director of the Community Development Commission of Mendocino County or his/her designee(s) to act on the City's behalf in all matters pertaining to this program, including executing all other documents and reports as required by the Department of Housing and Community Development or the United States Department of Housing and Urban Development for participation in the HOME program. PASSED AND ADOPTED by the Ukiah City Council on August 3, 2011, by the following roll call vote: AYES: NOES: ABSENT: ABSTAIN: Mari Rodin, Mayor ATTEST: JOANNE CURRIE City Clerk APPROVED AS TO FORM: Counsel I hereby certify that according to the provisions of Government Code Section 25103, delivery of this document has been made. BY: JOANNE CURRIE City Clerk ATTACHMENT CITY OF UKIAH in of t bL,11] FIRST TIME HOMEBUYER (FTHB) PROGRAM GUIDELINES Revised July 26, 2011 t.S• l: 1. COMMUNITY DEVELOPMENT COMMISSION Of Mendocino Counfy Main Office: 1076 North State St., Ukiah, CA 95482 707/463-5462 FAX: 707/463-4188 TDp:707/463-5697 To: Sage Sangiacomo, Assistant City Manager, City of Ukiah From: Craig Schlatter, Community Development Manager, CDC Date: July 27, 2011 Re: Staff Report - Proposed Revisions to City of Ukiah First Time Homebuyer Program Guidelines The CDC, through its existing agreement with the City, is currently working on submitting an application to the State Department of Housing and Community Development (HCD) Home Investment Partnerships Program (HOME) for funding of a $700,000 First Time Homebuyer (FTHB) program. This would be a continuation of the successful City of Ukiah FTHB program CDC administered for the City from 2009-11. One of the conditions of the application requires the City update its FTHB guidelines to reflect new regulations and updates in the HOME program. The most recent version of the City's FTHB guidelines was approved in October 2008. Because the City has a relatively current version of the HOME FTHB guidelines, not many revisions were needed. CDC has amended the City's existing FTHB guidelines per templates contained in the HOME Contract Management Manual and language in the 2011 HOME NOFA. Though not a requirement of the HOME program, staff seeks approval from Council to finalize these revisions in the City's First Time Homebuyer Program guidelines and satisfy HOME application requirements. Below is a list of the revisions made to the City's homebuyer program guidelines. Also included is a brief description of how the changes differ from language in the County's previous guidelines. Homebuyer Program Guidelines • Updated income limits, per-unit maximum subsidy limits, and maximum purchase price limits to reflect 2011 changes • Changed program name from Down payment Assistance Program to First Time Homebuyer program o Reflects change in program name language on HCD and HOME level • Inserted requirement on page 15 that purchasers must provide proof of property insurance to CDC/City to verify owner-occupancy status o A requirement for continued participation in the City's FTHB program is that owners receiving HOME loan funds must maintain owner-occupancy for the life of the loan; proof of property insurance is one of two verification methods for ensuring this occurs. It is also a requirement of HCD/HOME. Ck EGUAL HO ~SIHG • Inserted language pertaining to lead-based paint inspection procedures and mitigation • Attachment A, Loan Documents o New Acceleration on Transfer of Encumbrance of Property Form (page 34) o Standard form in housing rehabilitation loan documents- describes under what conditions acceleration on transfer of encumbrance can occur Please contact me anytime at 463-5462 X109 with additional questions. 2 TABLE OF CONTENTS 1. THE PROGRAM ..................................................................................................................3 11. LIMITS ..4 I11. RESALE-ASSUMPTIONS ..4 IV. SPECIAL CIRCUMSTANCES ..5 V. ELIGIBILITY ..5 CONFLICT OF INTEREST ..5 FIRST-TIME HOMEBUYER ..5 VI. INCOME ..6 INCOME INCLUSIONS ...............................................................................................7 INCOME EXCLUSIONS 9 VII. TENANTS . 11 VI11. LEASE OPTIONS 11 IX. PROPERTY 12 1. LOCATION 12 2. OCCUPANCY 12 3. TITLE 12 4. CONDITION 12 X. TYPES O FINANCING AND TERMS 12 MAXIMUM LOAN AMOUNT 12 DEFERRED PAYMENT LOANS (DPLS) 12 BELOW MARKET INTEREST RATE (BMIR) LOANS 12 DETERMINING ELIGIBILITY 13 DETERMINING LOAN AMOUNTS 13 REQUIREMENTS FOR PRIMARY FINANCER .13 XI. LOAN DOCUMENTS 13 X11. CLOSING COSTS 13 XI11. SECURITY 14 XIV. OCCUPANCY REQUIREMENTS 14 XV. TRANSFER OF TITLE 15 XVI. HOUSING COUNSELING 15 1. HOMEBUYER EDUCTION LEARNING PROGRAM (HELP) ......................................15 Page 1 2. INDIVIDUAL DEVELOPMENT ACCOUNTS ....................................................................16 VII. APPLICANT SELECTION AND LOAN CLOSING ..........................................................16 A. LOAN COMMITTEE 16 1. _Purpose 16 2. Composition 16 3. Meetings 16 4. Action 16 B. APPLICATION PROCESSING 16 C. APPLICATION SELECTION 17 D. LOAN APPROVAL 17 E. LOAN CLOSING 18 F. APPEALS 18 XVIII. INSURANCE 18 A. HAZARD INSURANCE 18 B. FLOOD INSURANCE 18 XI. DELINQUENCIES DEFAULTS AND FORECLOSURES 18 A. POLICY 18 XX. AFTER-PURCHASE PROPERTY MAINTENANCE 19 A. POLICY 19 B. PROCEDURE 19 XXI. REUSE PLAN 20 XXII. AMENDMENTS 20 XXIII. RELOCATION POLICY 20 XXIV. AFFIRMATIVE MARKETING/EQUAL OPPORTUNITY 23 AFFIRMATIVE ACTION 23 EQUAL OPPORTUNITY 23 XXV. INSPECTION PROCEDURES 24 Attachment A - Loan Documents ..............................................................................25 Attachment B - HOME Program Income Reuse Plan .....................................................34 Attachment C - Income, Subsidy and Maximum Purchase Price/After Rehabilitation Value Limits .............................................................................................38 Page 2 THE PROGRAM The City of Ukiah, hereinafter referred to as the "City," has entered into a contractual relationship with the California Department of Housing and Community Development ("HCD") to administer one or more HCD-funded homebuyer programs. The homebuyer program described herein (the "Program") is designed to provide assistance to eligible homebuyers in purchasing homes, also referred to herein as "housing units", located within the incorporated area of the City of Ukiah, as described in Section 2.1. The Program provides this assistance in the form of deferred payment "silent" second priority loans as "Gap" financing toward the purchase price and closing costs of affordable housing units that will be occupied by the homebuyers. The Program will be administered by the Community Development Commission of Mendocino County (the "CDC"). The City of Ukiah First Time Homebuyer (FTHB) Program will make below market interest rate deferred loans to qualifying low-income first-time homebuyers to purchase homes in the incorporated area of the City of Ukiah. Participants must qualify by not having owned a home in the last three years, must qualify under low-income guidelines and occupy the unit as their principal residence. The FTHB loans may include closing costs, unless not eligible under the requirements of the original funding source. The buyers will be required to make a minimum contribution of four percent (4%) for the city program. At least half of the buyer's share must be from his or her own funds; the remaining half may come from gift funds. Applicants must attend Housing Counseling Sessions given by The Community Development Commission of Mendocino County (CDC). The City will impose certain requirements on each assisted purchase: At transfer of title to the first-time homebuyer, the home must pass Section 8 Housing Quality Standards and be in compliance with the local building code's minimum requirements for health and safety as determined by a staff inspector. A Community Development Housing Inspector will perform the inspection. This requirement will be part of the purchase offer. 2. The FTHB loan(s) will be recorded on the purchased property directly behind the primary purchase financing. Primary financing must be with a conventional lender. 3. Repayment of the loan(s) will be required upon sale (except for approved assumptions, see below), transfer of title (except for approved transfers, see below), if the property is no longer the primary residence or after 30 years. The principal plus three percent annual interest will be repaid. 4. A document restricting resale and ensuring affordability for at least 5-15 years will be recorded. FTHB loans cannot be used for refinancing of existing loans. Page 3 II. LIMITS In an attempt to address the needs of a variety of low-income persons, some limits are designed into the program. Maximum purchase price will be limited to FHA limits. For HOME-funded FTHB loans, the maximum purchase price will be limited to the Sales Price Limit and acquisition price will not exceed the amount published in the current NOFA, or approved by HUD. The Maximum Purchase Price/After-Rehabilitation Value Limit for HOME for 2011 is $362,790.1 The total loan(s) amount from the FTHB program must be less than the financing from the primary lender, at a maximum of forty nine percent (49%) of the total financing package, and the maximum limit will be revised to reflect current market conditions. The true limiting factor will be income status, and the limited size of a first mortgage that a family may obtain. The income limits for the program will be those published by HUD for Mendocino County. Specifically, the limits are 80% of median income adjusted for family size (please see Attachment C). Assistance will be limited to those families qualifying as "lower-income." III. RESALE-ASSUMPTIONS: A recorded document will contain provisions restricting resale. For a 5-15-year period for the City, these conditions will apply: A. Any purchaser of the property must be a qualifying low-income household that will reside in the property as their primary residence. B. The sale price must permit the low-income purchaser to maintain affordability. C. There must be a fair return on investment to the seller. Note: A. and B. above are not applicable to loans funded by HOME. The minimum periods of affordability are specified in the following table, and shall comply with the other requirements of 24 CFR Sections 92.252, 92.254, 92.255 and 92.258. Amount of HOME Assistance Activity Minimum Period of Affordability in Years Less than $15,000 FTHB 5 $15,000 - $40,000 FTHB 10 More than $40,000 FTHB 15 No additional HOME assistance may be provided during the period starting one year following the filing of the Project Completion Report through end of the affordability period. When these terms are met and the new borrower is an eligible heir (please see Section XIV.A.4.), FTHB loan(s) may be assumable. The new purchaser must execute an assumption agreement confirming agreement with the terms of the FTHB loan. If these terms are not met, 12008 NOFA Appendix D, "Maximum Purchase Price/After-Rehabilitation Value Limits," 4/29/08. Page 4 the FTHB loan is due and payable and the FTHB funds will be recaptured to the local FTHB account(s). The homeowner may recover the initial investment. However, assumptions are not allowed if not eligible under the funding source of the loan(s). Proceeds from sales will be recycled into eligible activities with the same regulations and procedures of the original funding source. IV. SPECIAL CIRCUMSTANCES A. Flood plain: Units in the 100-year flood plain will not be eligible. B. Lead Paint: Lead-base paint requirements for properties constructed prior to 1978 will be addressed prior to purchase. These requirements include: requirement that lead-base paint notification be given to purchasers. The pamphlet "Protect your Family from Lead in the Home" will be given to purchasers. Please contact the CDC office for the most current information regarding Lead Based Paint and home purchases. C. Notice to Sellers: It will be a requirement that an acquisition notice containing the items below be provided to seller prior to making the purchase offer: the purchaser has no power of eminent domain and, therefore, will not acquire the property if negotiations fail to result in an amicable agreement; an estimate of the fair market value of the property; if an acquisition notice will not be provided prior to the purchase offer, a provision that the seller may withdraw from the agreement after this information is provided. D. Tenant-Occupied Properties: Tenant occupied properties will not be eligible, unless the tenant is the first-time homebuyer making the purchase. A rental property must be vacant for a minimum of 120 days to be an eligible property. V. ELIGIBILITY CONFLICT OF INTEREST No member of the City of Ukiah City Council and no other official, employee or agent of City of Ukiah, and the Community Development Commission of Mendocino County, who exercises policy, decision-making functions, or responsibilities in connection with the planning and implementation of the program shall directly or indirectly be eligible for this program, unless the application for assistance has been reviewed and approved according to applicable California Department of Housing and Community Development (HCD) guidelines and federal HOME Regulations at 24 CFR 92.356. This ineligibility shall continue for one year after an individual's relationship with the City of Ukiah government and/or the Community Development Commission of Mendocino County ends. FIRST-TIME HOMEBUYER "First-time homebuyer" means an individual or individuals or an individual and his or her spouse Page 5 who have not owned a home during the three-year period before the purchase of a home with assistance, except that the following individual or individuals may not be excluded from consideration as a first-time homebuyer under the definition: A displaced homemaker who, while a homemaker, owned a home with his or her spouse or resided in a home owned by the spouse. A displaced homemaker is an adult who has not, within the preceding two years, worked on a full-time basis as a member of the labor force for a consecutive twelve-month period and who has been unemployed or underemployed, experienced difficulty in obtaining or upgrading employment and worked primarily without renumeration to care for his or her home and family; 2. A single parent who, while married, owned a home with is or her spouse or resided in a home owned by a spouse. A single parent is an individual who is unmarried or legally separated from a spouse and has one or more minor children for whom the individual has custody or joint custody or is pregnant; and 3. An individual or individuals who owns or owned, as a principal residence during the three- year period before the purchase of a home with HOME assistance, a dwelling unit whose structure is: A. Not permanently affixed to a permanent foundation in accordance with local or state regulations; or B. Not in compliance with state, local, or model building codes and cannot be brought into compliance with such codes for less than the cost of constructing a permanent structure. C. By definition, the housing must be single-family housing (1- to 4-family residence, condominium unit, cooperative unit, combination manufactured home and lot, or manufactured home lot). Individual funding sources may have a definition of applicable housing that may be more restrictive; if so, then that definition will apply if that funding source is used. 4. Ownership is defined as one's exclusive right of possessing, enjoying, and disposing of real property, including both possession and title. VI. INCOME To receive First time HOME BUYER assistance, households must have incomes at or below 80% of the Mendocino County Median Income adjusted for household size, as reported by the US Department of Housing and Urban Development. The Community Development Commission of Mendocino County will perform income and asset verifications for all FTHB loan applicants utilizing Part 5 Income Calculation methods. The income limits for Mendocino County are included in Attachment C. Page 6 Family members as determined under our program guidelines include: 1. Unborn children of pregnant women; 2. Children in joint custody arrangements who are present in the household 50% or more of the time; 3. Temporarily absent family members who are still considered family members. For example, 1. a family member who is working in another state on assignment; 2. family members in the hospital or rehabilitation facility for periods of limited or fixed duration. 4. Persons permanently confined to a hospital or nursing home. The family decides if such persons are included or not when determining family size for income limits. If such persons are included, they must not be listed as the head, co-head, or spouse on the application, but may be listed as other adult family member. If the family chooses to include the permanently confined person as a member of the household, include the income received by these persons in calculating family income. 5. Adult students living away from home. If the adult student is counted as a member of the household for income limits, the first $480 of the student's income must be counted in the family's income. Note, however, that the $480 limit does not apply to a student who is the head of household or spouse (their full income must be counted) 6. Children who are in the process of being adopted. Count adoption assistance payments in excess of $480 per adopted child. Subject to the exemptions allowed in the "Technical Guide for Determining Income and Allowances for the HOME Program, Third Edition, 2005," all persons in residence are considered household members for purposes of income edibility. Family members as determined under our program guidelines exclude: 1. Foster Children 2. Live-in aides and children of Live-in aids 3. Children being pursued for legal custody or adoption who are not currently living with the household. 4. A child who is subject to a shared-custody agreement in which the child resides with the household less than 50% of the time. Calculation of Income. Income is defined as monetary benefits from any source whatsoever, before deductions or exemptions, anticipated to be received during the twelve months following application for a grant. If all or part of income is derived from irregular employment or includes earnings from occasional overtime work, such income received during the preceding twelve months will be used as a basis to anticipate income for the succeeding twelve months. The income of the applicant includes the income of the head of household and any other person or persons who are on title and permanently reside in the same dwelling unit. The household's income includes; Page 7 Income INCLUSIONS Income is determined at the time of initial occupancy of property or at the time the FTHB funds are invested, whichever is the latter. Income is projected for the next 12 months. If the applicant is approved for FTHB assistance, income must be certified within six months of assistance. Sources included as income are derived from 24 CFR 5.609 paragraph (b) of the Code of Federal Regulations (April 1, 2004) and include: a) Income from wages, salaries, tips, etc. The full amount, before any payroll deductions, of wages and salaries, overtime pay, commissions, fees, tips and bonuses, and other compensation for personal services. b) Business Income. The net income from the operation of a business or profession. Expenditures for business expansion or amortization of capital indebtedness shall not be used as deductions in determining net income. An allowance for depreciation of assets used in a business or profession may be deducted, based on straight-line depreciation, as provided in Internal Revenue Service regulations. Any withdrawal of cash or assets from the operation of a business or profession will be included in income, except to the extent the withdrawal is reimbursement of cash or assets invested in the operation by the family. c) Interest & Dividend Income. Interest, dividends, and other net income of any kind from real or personal property. Expenditures for amortization of capital indebtedness shall not be used as deductions in determining net income. An allowance for depreciation is permitted only as authorized in number 2 (above). Any withdrawal of cash or assets from an investment will be included in income, except to the extent the withdrawal is reimbursement of cash or assets invested by the family. Where the family has net family assets in excess of $5,000, annual income shall include the greater of the actual income derived from all net family assets or a percentage of the value of such assets based on the current passbook savings rate, as determined by HUD. d) Retirement & Insurance Income. The full amount of periodic amounts received from Social Security, annuities, insurance policies, retirement funds, pensions, disability or death benefits, and other similar types of periodic receipts, including a lump-sum amount or prospective monthly amounts for the delayed start of a periodic amount (except as provided in number 14 of Income Exclusions). e) Unemployment & Disability Income. Payments in lieu of earnings, such as unemployment and disability compensation, worker's compensation, and severance pay (except as provided in number 3 of Income Exclusions). f) Welfare Assistance. Welfare assistance payments made under the Temporary Assistance for Needy Families (TANF) program are included in annual income: • Qualify as assistance under the TANF program definition at 45 CFR 260.31; and • Are otherwise excluded from the calculation of annual income per 24 CFR 5.609(c). If the welfare assistance payment includes an amount specifically designated for shelter and utilities that is subject to adjustment by the welfare assistance agency in accordance with the actual cost of shelter and utilities, the amount of welfare assistance income to be included as income shall consist of: • the amount of the allowance or grant exclusive of the amount specifically Page 8 designated for shelter or utilities; plus • the maximum amount that the welfare assistance agency could in fact allow the family for shelter and utilities. If the family's welfare assistance is reduced from the standard of need by applying a percentage, the amount calculated under 24 CFR 5.609 shall be the amount resulting from one application of the percentage. g) Alimony, Child Support, & Gift Income. Periodic and determinable allowances, such as alimony and child support payments, and regular contributions or gifts received from organizations or from persons not residing in the dwelling. h) Armed Forces Income. All regular pay, special day and allowances of a member of the Armed Forces (except as provided in number g of Income Exclusions). Adjusted income is derived from HUD or U.S. Census Sources of income derived from 24 CFR 5.609 paragraph (b) of the Code of Federal Regulations (April 1, 2004) exclude: Income EXCLUSIONS a) Income of Children. Income from employment of children (including foster children) under the age of 18 years. b) Foster Care Payments. Payments received for the care of foster children or foster adults (usually persons with disabilities, unrelated to the tenant family, who are unable to live alone). c) Inheritance and Insurance Income. Lump-sum additions to family assets, such as inheritances, insurance payments (including payments under health and accident insurance and worker's compensation), capital gains and settlement for personal or property losses (except as provided in number e) of Income Inclusions). d) Medical Expense Reimbursements. Amounts received by the family that are specifically for, or in reimbursement of, the cost of medical expenses for any family member. e) Income of Live-in Aides. Income of a live-in aide (as defined in 24 CFR 5.403). f) Disabled Persons. Certain increases in income of a disabled member of qualified families residing in HOME-assisted housing or receiving HOME tenant-based rental assistance (24 CFR 5.671(a)). g) Student Financial Aid The full amount of student financial assistance paid directly to the student or to the educational institution. h) Armed Forces Hostile Fire Pay. The special pay to a family member serving in the Armed Forces who is exposed to hostile fire. i) Self-Sufficiency Program Income. a. Amounts received under training programs funded by HUD. b. Amounts received by a person with a disability that are disregarded for a limited time for purposes of Supplemental Security Income eligibility and benefits because they are set aside for use under a Plan to Attain Self-Sufficiency (PASS). c. Amounts received by a participant in other publicly assisted programs that are specifically for, or in reimbursement of, out-of-pocket expenses incurred (special equipment, clothing, transportation, childcare, etc.) and which are made solely to allow participation in a specific program. d. Amounts received under a resident service stipend. A resident service stipend is Page 9 a modest amount (not to exceed $200 per month) received by a resident for performing a service for the PHA or owner, on a part-time basis, that enhances the quality of life in the development. Such services may include, but are not limited to, fire patrol, hall monitoring, lawn maintenance, resident initiatives coordination, and serving as a member of the PHA's governing board. No resident may receive more than one such stipend during the same period of time. e. Incremental earnings and benefits resulting to any family member from participation in qualifying state or local employment training programs (including training not affiliated with a local government) and training of a family member as resident management staff. Amounts excluded by this provision must be received under employment training programs with clearly defined goals and objectives, and are excluded only for the period during which the family member participates in the employment training program. j) Gifts. Temporary, nonrecurring, or sporadic income (including gifts). k) Reparations. Reparation payments paid by a foreign government pursuant to claims filed under the laws of that government by persons who were persecuted during the Nazi era. 1) Income from Full-time Students. Earnings in excess of $480 for each full-time student 18 years old or older (excluding the head of household or spouse). m) Adoption Assistance Payments. Adoption assistance payments in excess of $480 per adopted child. n) Social Security & SSI Income. Deferred periodic amounts from SSI and Social Security benefits that are received in a lump sum amount or in prospective monthly amounts. o) Property Tax RefundsAmounts received by the family in the form of refunds or rebates under state or local law for property taxes paid on the dwelling unit. p) Home Care Assistance. Amounts paid by a state agency to a family with a member who has a developmental disability and is living at home to offset the cost of services and equipment needed to keep this developmentally disabled family member at home. q) Other Federal Exclusions. Amounts specifically excluded by any other federal statute from consideration as income for purposes of determining eligibility or benefits under a category of assistance programs that includes assistance under any program to which the exclusions of 24 CFR 5.609(c) apply, including: • The value of the allotment made under the Food Stamp Act of 1977; • Payments received under the Domestic Volunteer Service Act of 1973 (employment through VISTA, Retired Senior Volunteer Program, Foster Grandparents Program, youthful offender incarceration alternatives, senior companions); • Payments received under the Alaskan Native Claims Settlement Act; • Income derived from the disposition of funds to the Grand River Band of Ottawa Indians; • Income derived from certain submarginal land of the United States that is held in trust for certain Indian tribes; • Payments or allowances made under the Department of Health and Human Services' Low-Income Home Energy Assistance Program; • Payments received under the Maine Indian Claims Settlement Act of 1980 ( 25 U.S.C. 1721); • The first $2,000 of per capita shares received from judgment funds awarded by the Indian Claims Commission or the U.S. Claims Court and the interests of Page 10 individual Indians in trust or restricted lands, including the first $2,000 per year of income received by individual Indians from funds derived from interests held in such trust or restricted lands; • Amounts of scholarships funded under Title IV of the Higher Education Act of 1965, including awards under the Federal workstudy program or under the Bureau of Indian Affairs student assistance programs; • Payments received from programs funded under Title V of the Older Americans Act of 1985 (Green Thumb, Senior Aides, Older American Community Service Employment Program); • Payments received on or after January 1, 1989, from the Agent Orange Settlement Fund or any other fund established pursuant to the settlement in the In Re Agent Orange product liability litigation, M.D.L. No. 381 (E.D.N.Y.); • Earned income tax credit refund payments received on or after January 1, 1991, including advanced earned income credit payments; • The value of any child care provided or arranged (or any amount received as payment for such care or reimbursement for costs incurred for such care) under the Child Care and Development Block Grant Act of 1990; • Payments received under programs funded in whole or in part under the Job Training Partnership Act (employment and training programs for Native Americans and migrant and seasonal farm workers, Job Corps, veterans employment programs, state job training programs and career intern programs, AmeriCorps); • Payments by the Indian Claims Commission to the Confederated Tribes and Bands of Yakima Indian Nation or the Apache Tribe of Mescalero Reservation; • Allowances, earnings, and payments to AmeriCorps participants under the National and Community Service Act of 1990; • Any allowance paid under the provisions of 38 U.S.C. 1805 to a child suffering from spina bifida who is the child of a Vietnam veteran; • Any amount of crime victim compensation (under the Victims of Crime Act) received through crime victim assistance (or payment or reimbursement of the cost of such assistance) as determined under the Victims of Crime Act because of the commission of a crime against the applicant under the Victims of Crime Act; and • Allowances, earnings, and payments to individuals participating in programs under the Workforce Investment Act of 1998. VII. TENANTS Tenant-occupied units are not eligible for this program, with the exception of tenants wishing to purchase their single-family unit through the FTHB program. This option would only be available if all other qualifications apply (location, condition of property and income). VIII. LEASE OPTIONS Under certain circumstances lease option purchases are allowed under the FTHB program. The contract must be entered into within the time frame allowed in the grant, and must close within the allowable time frames. Page 11 IX. PROPERTY To be eligible for program financing, properties must comply with the following criteria: Location Units to be purchased with FTHB funds must be located in the incorporated area of the City of Ukiah, excluding portions subject to flooding. The City reserves the option of completing the "eight step" process for areas subject to flooding, converting to exempt status, and including these areas at the discretion of the Community Development Manager. 2. Occupancy This program is for first time homebuyers (see definition). This is for a principal residence, owner occupied. 3. Title Property owners shall hold land in fee title. 4. Condition To qualify, the home must meet local building codes. X. TYPES OF FINANCING AND TERMS Maximum Loan Amount Maximum total assistance with FTHB funds will be revised to reflect current market conditions, but cannot exceed forty-nine percent (49%) of the total financing on the property. Total indebtedness against property will not exceed 100% for the entire term of the loan(s). Maximum loan amount for HOME assistance cannot exceed the per-unit dollar limits (221(d) (3) limits), established by HUD under 24 C.F.R. 92.250. Please see Attachment C for current HOME-assisted loan limits. Deferred Payment Loans (DPLs) A DPL is a loan secured by a deed of trust with no payback required until the borrower sells or transfers title or discontinues residence in the dwelling during the affordability period. The borrower must maintain the property as their primary residence for the full term of the loan. When specific circumstances occur, the DPL becomes immediately due and payable. Payments may be made voluntarily on a DPL. Below Market Interest Rate (BMIR) Loans Page 12 DPL loans secured by a deed of trust will bear a fixed simple interest rate of Three per cent (3%) per annum on the unpaid principal balance. The term of all loans will be for 30 years unless a longer period is deemed necessary to protect the integrity of the loan. There will be no prepayment penalty. Determining Eligibility Applicants must have incomes below 80% of the median income for Mendocino County adjusted for family size. Affordability is based upon an applicant qualifying for a first mortgage payment typically of no more than 35% of gross income applied to housing costs, unless differing from the requirements of the applicable funding source (this may be reviewed and adjusted on a case by case basis). Housing costs include mortgage payments on the subject property, real estate taxes and insurance (PIT]). Determining Loan Amounts FTHB loan amount(s) should be decided on the criteria of minimum amount necessary to make the home buying possible. This ensures the maximum number of eligible homebuyers may be assisted through the program. Besides this, the program will have a standard household debt/income ratio maximum of 35% for primary financing, unless differing from the requirements of the applicable funding source (this may be reviewed on a case by case basis. The overall debt/income ratio is not to exceed 50% (this may also be reviewed on a case by case basis and subject to the requirements of the applicable funding source). Requirements for Primary Financer Primary financing must be with a conventional lender and must be for the maximum amount possible. The loan must have a fixed interest rate within 100 basis points of the Fannie Mae published rate, be fully amortizing, and must have a minimum loan term of 30 years. XI. LOAN DOCUMENTS Examples of all loan documents are to be found in Attachment A. XII. CLOSING COSTS Closing costs incurred during the processing of a loan application will normally be paid by the applicant out of loan proceeds. These costs, which may vary among applications, may include: credit report fee(s), appraisal fee, title insurance fee, escrow fee, pest control report fees, and recording fees and other miscellaneous fees. These may be part of the FTHB loan, if allowed under the guidelines of the original funding source. However, it is preferred that closing costs be paid from the buyer's contribution to the purchase. Page 13 XIII. SECURITY Property to be purchased shall act as security for the loan(s). All loans shall be secured by a Promissory Note and Deed of Trust, which shall be recorded. The FTHB loan(s) will serve in a junior lien position(s). Lien position of the loan(s) from FTHB will depend on the position requirements of the particular funding source. XIV. OCCUPANCY REQUIREMENTS A. Owner-Occupants In the event that an owner-occupant sells, transfers title, or discontinues residence in the property for any reason, the loan is due and payable. 2. If, however, the owner-occupant who qualifies for FTHB financing dies, and if the heir to the property lives in the house and is income-eligible, the heir may be permitted, upon approval of the city to assume the loan at the rate and terms he or she qualifies for under current participation guidelines, dependent on whether allowable by the funding source. 3. If the owner-occupant who qualifies for FTHB financing dies and the heir is not income-eligible, the loan is due and payable. 4. Specific HOME requirements for heirs: • Homeowner (original borrower) dies but household (excepting original borrower) stays unchanged from application-income does not need to be verified, and as long as the surviving household member(s) continues to occupy the unit as their principle residence the loan would not be due and payable. • Homeowner (original borrower) dies and the heir (who was not part of the original household) is living in the unit. If the heir continues to live in the unit and is income qualified (verification is needed), the loan would not be due and payable. • Homeowner (original borrower) dies and the heir (who was not a part of the original household) does not reside in the home. If the heir agrees to live in the unit and is income qualified (verification is needed), the loan would not be due and payable. • If the heir does not agree to live in the home and/or is not income qualified (verification is needed), the loan is due and payable. 4. If the owner-occupant who qualifies for FTHB financing dies and the heir is not income-eligible, but he or she chooses to rent the unit to low-income families and agrees to comply with owner-investor restrictions, the heir may be permitted, upon Page 14 approval of the city to assume the loan at the same rate and terms offered investors under current program guidelines. If the heir does not comply with investor restrictions, the loan is due and payable. Note: Renting the unit as described above is not allowable if the source of the FTHB assistance is HOME. 5. If an owner wants to convert the property to any commercial or non-residential use, the loan is due and payable. Verification of owner-occupant status will be required on an annual basis and will require the homebuyer to submit such items as property tax statements and proof of property insurance showing homeownership exemption and insurance policies. XV. TRANSFER OF TITLE A transfer of title will automatically result in the loan being due and payable except when: a. A transfer where the spouse becomes an owner of the property. b. A transfer resulting from a decree of dissolution of marriage, legal separation agreement, or from an incidental property settlement agreement by which the spouse becomes an owner of the property; or c. A transfer into an inter vivos trust in which the homebuyer is and will remain the beneficiary and occupant of the property. XVI. HOUSING COUNSELING Home buyer Education Learning Program (HELP) CDC will provide a housing counseling seminar. The program is a HUD-approved seminar consisting of 5 modules. Budgeting for your home purchase Shopping for your home Shopping for your lender Now you are ready to close How to care for your home after closing The five modules cover, but are not limited to, the following: preparing for homeownership; available financing and credit analysis; loan closing and homebuyer responsibilities; home maintenance and budgeting for mortgage payments and other expenses; the impact of refinancing on the long-term; and financial health of the homebuyer. A certificate of successful completion of homebuyer education shall be issued to each prospective homeowner Page 15 2. Individual Development Accounts Qualified individuals and families who successfully complete HELP may be eligible for up to $15,000 in matching funds. Please contact the CDC office for details. XVII. APPLICANT SELECTION AND LOAN CLOSING A. Loan Committee 1. Purpose The function of the Loan Committee will be to review and act on applications recommended by program staff for financing. The Committee shall review applications in terms of: eligibility, compliance with all program requirements, and consistency of staff recommendations regarding loan terms and type(s) of assistance to be provided. 2. Composition The Committee will consist of two members of the Community Development Commission of Mendocino County Board of Commissioners and the Executive Director of the Community Development Commission of Mendocino County. 3. Meetings The Loan Committee shall meet periodically to review and act on applications. A quorum shall exist and all minutes shall be recorded. A quorum is a simple majority of the full committee. 4. Action Action of the Loan Committee shall be by majority vote. B. Application Processing Staff shall gather any necessary financial information to determine applicant eligibility and repayment ability. An application consists of: 1. An application form containing financial and household information regarding the potential homeowners. 2. A form containing necessary income and household information. All applicants over the age of 18 years of age will have their income verified by use of one or more of the following forms. Page 16 a. Request for Verification of Employment b. Verification of Public Assistance C. Three years Income tax information (1040s, etc.) d. Benefit letters for sources of public assistance or pensions 3. Credit evaluations and income, employment and mortgage verifications as obtained by staff. 4. Preliminary Title Report and Appraisal of current market value will be required. 5. Landlord verifications and ratings. C. Application Selection A Loan Committee Report (LCR) will be prepared for all loan applications determined by staff to be eligible for FTHB loan(s). The LCR and the application will be brought before the Loan Committee for approval. General lending criteria that will be used to assist in evaluating the applications of eligible applicants for financial assistance will include: The ability and willingness of an applicant to repay the primary loan. The housing debt/income ratio is not to exceed 35% except on a case-by-case basis, or if differing from the requirements of the applicable funding source. All existing liabilities and new housing payment ratios are not to exceed 50%, except on a case-by-case basis. 2. All recommendations for loans shall be developed by the Community Development Manager or his/her designee(s) and submitted to the Loan Committee. The Community Development Manager's (or designee's) recommendations shall be submitted in written form and shall propose the terms of the loan, interest rate, special conditions, and whether the loan should be approved or denied. All applications shall be submitted for consideration regardless of whether the recommendation is for approval or denial. D. Loan Approval All FTHB Loans must be approved by the Loan Committee. In order to obtain FTHB financing, applicants must meet all property and income eligibility guidelines and Housing Counseling Programs in effect at the time of loan approval. Applicants will be provided written notification of approval or denial. Reason for denial will be provided to the applicants in writing. An appropriate funding cut off point established for each review period will determine the number of applications that may be approved for funding at that Page 17 particular time. Qualified applications not selected for funding during one review period will be automatically reconsidered during a subsequent period E. Loan Closing The Community Development Manager or Staff will provide the execution of all necessary loan documents to submit to the Title Company. F. Appeals Objections by any applicant as to policy, procedures, method of operation or decisions by the Program CDC staff or Loan Committee will be referred to the Executive Director. The Executive Director will schedule a hearing for the applicant and establish hearing procedures. Decisions of the Loan Committee will be based upon its interpretation of the Program Policies and Administrative Procedures. XVIII. INSURANCE A. Hazard Insurance The borrower shall maintain hazard insurance on the property for the duration of the loan(s). This insurance must be an amount adequate to cover all encumbrances on the property. The insurer must identify the City of Ukiah as Loss Payee for the amount of the loan(s). Proof of insurance shall be provided to the CDC. B. Flood Insurance Properties in Flood Prone areas are not eligible for FTHB financing. In the event the property is designated a "flood prone" area after purchase, owners agree to purchase flood insurance. This policy must endorse the City of Ukiah as additional-insured. XIX. DELINQUENCIES, DEFAULTS AND FORECLOSURES A. Policy FTHB loans are deferred payment loans. Payments may be made on a voluntary basis, but are not required unless the applicant defaults on the terms of the loan. In those incidences The City of Ukiah acknowledges that circumstances beyond a borrower's control may temporarily limit his/her ability to meet loan terms. The City of Ukiah desires to be flexible enough so that in cases of: death of a family member, loss of job, divorce and major illness loan terms may be modified. While the City of Ukiah, in this policy, outlines a system that can accommodate crises that restrict borrowers' ability to meet loan terms, it should in no way be Page 18 misunderstood. Loan terms must be fulfilled. The City of Ukiah will pursue all legal means to ensure fulfillment of loan terms. XX. AFTER-PURCHASE PROPERTY MAINTENANCE A. Policy ALL FTHB Loans require the borrower: 1. To protect and preserve said property and to maintain it in good condition and repair; 2. Not to remove, demolish or materially alter any building or any improvement thereon. 3. To complete or restore promptly and in good workmanlike manner any building or improvement that may be constructed, damaged or destroyed thereon and pay when due all costs incurred therefore; and to comply with all of the terms of any loan agreement between Trustor and Beneficiary; 4. Not to commit or permit waste of the property; 5. To comply with all laws, covenants, conditions or restrictions affecting the property; 6. To cultivate, irrigate, fertilize, fumigate, prune and do all other acts that from the character or use of said property may be reasonably necessary, the specific enumerations herein not excluding the general. These conditions help assure that the property does not revert to a substandard state. B. Procedure When the City of Ukiah becomes aware that property is not being properly maintained it shall: 1. Provide the borrower in writing: a. a list of needed repairs or maintenance items b. a recommendation as to a solution to the deficiencies c. a request that the repairs be performed within 60 days 2. At the end of the 60-day period, City of Ukiah staff shall inspect the property. If the needed repairs have not been performed, staff shall set an appointment with the borrower to discuss why maintenance has not been performed. 3. Following the visit and inspection, the borrower will be given 60 days to make the necessary repairs. The borrower will be given written notice at the start of this phase that if repairs are not performed within 60 days the borrower will be considered to be in default. Page 19 4. If repairs are not performed within 60 days of the notice outlined in Item 3, the City of Ukiah may begin foreclosure proceedings. XXI. REUSE PLAN All repayments of loan principal and interest shall be deposited to separately maintained reuse accounts. Funds in the reuse accounts shall only be used for eligible activities as defined by the original funding source and shall only be used in eligible areas as defined by the original Standard Agreement. Reuse Plans for different funding sources are in Attachment B. XXII. AMENDMENTS Amendments to these Policies and Procedures may be made by the City and will be submitted to the California Department of Housing and Community Development for approval. Where changes in the guidelines would adversely affect program applications already under review, such applications will be evaluated under the guidelines in effect at the time of application. XXIII. RELOCATION POLICY Note: HOME-funded loans cannot be provided if the home is tenant-occupied, unless the tenant wishes to purchase the home or if the home is vacant for 90 days prior to open of escrow. RESIDENTIAL ANTI-DISPLACEMENT AND RELOCATION ASSISTANCE PLAN CITY OF UKIAH The jurisdiction will replace all occupied and vacant occupiable low/moderate-income dwelling units demolished or converted to a use other than as low/moderate-income housing as a direct result of activities assisted with funds provided under the Housing and Community Development Act of 1974, as amended, as described in 24 CFR 470.606 (b) (1) and 24 CFR 92. All replacement housing will be provided within three years of the commencement of the demolition or rehabilitation relating to conversion. Before obligating or expending funds that will directly result in such demolition or conversion, the jurisdiction will make public and submit to the Department the following information in writing: 1. A description of the proposed assisted activity; 2 The general location on a map and approximate number of dwelling units by size (number of bedrooms) that will be demolished or converted to a use other than as low/moderate-income dwelling units as a direct result of the assisted activity; Page 20 3. A time schedule for the commencement and completion of the demolition or conversion; 4. The general location on a map and approximate number of dwelling units by size (number of bedrooms) that will be provided as replacement dwelling units. 5. The source of funding and a time schedule for the provision of replacement dwelling units; 6. The basis for concluding that each replacement dwelling unit will remain a low/moderate- income dwelling unit for at least 5 years from the date of initial occupancy. The jurisdiction will provide relocation assistance to each low/moderate-income household displaced by the demolition of housing or by the conversion of a low/moderate-income dwelling to another use as a direct result of assisted activities. Consistent with the goals and objectives of activities assisted under the Act, the jurisdiction will take the following steps to minimize the displacement of persons from their homes: A. Steps to Minimize or Prevent Displacement 1. Use available funds to provide seed money grants or loans, long-term mortgage loans at favorable rates, or capital grants to tenant groups of multi-family buildings to help them convert to cooperatives. 2. Stage rehabilitation of assisted housing to allow tenants to remain during and after rehabilitation, working with empty building or groups or empty units first so they can be rehabilitated first and tenants moved in before rehab on occupied units or building is begun. 3. Establish temporary relocation facilities in order to house families whose displacement will be of short duration, so they can move back to their neighborhoods after rehabilitation or new construction. 4. Evaluate housing codes and rehabilitation standards in reinvestment areas to prevent their placing undue financial burden on long-established owners or on tenants of multi- family buildings. 5. Provide counseling via Government or non-profit organizations to assist homeowners and renters to understand the range of assistance that may be available to help them in staying in the area in the face of revitalization pressures. 6. Shift the concentrated demand generated by intense investment in one or two neighborhoods to other neighborhoods by: (a) targeting public improvements into several other neighborhoods with potential for revitalization; (b) conduction of advertising campaigns to attract interest in other neighborhoods. B. Steps to Assist Displaced Persons to Remain in their Present Neighborhood Page 21 1. Provide lower-income housing in the neighborhood through HUD housing programs; purchase units as is; rehabilitate vacant units; 2. Give Priority in assisted housing units in the neighborhood to area residents facing displacement. 3. Target Section 8 existing program certificated to households being displaced, and recruit area landlords to participate in the program. 4. Provide counseling and referral services to assist displacees find alternate housing in the neighborhood. 5. Work with area landlords and real estate brokers to locate vacancies for household facing displacement. C. Steps to Otherwise Mitigate Adverse Effects of Displacement 1. Use of public funds, such as CDBG funds, to pay moving costs and provide relocation payments, or require private developers to provide compensation to persons displaced by development activities. 2. Give displacees priority in obtaining subsidized housing units. 3. Provide counseling and referral services to assist displacees to locate elsewhere in the community or metropolitan area. D. Additional Procedures for Acquisition of Single-Family Homes (HOME funds) When the jurisdiction uses HOME funds to obtain a single-family home, or to provide financial assistance in such a transaction, the URA and its implementing regulations (49 CFR part 24) will be adhered to. Policies and Procedures described in HUD Handbook 1378, Chapters 1 through 6 and Chapter 8 will be implemented, and those specific to the HOME program described on pages 8-17 through 8-23, will be followed. 1. Unit occupied bV home owner. The home owner will be notified in writing that the jurisdiction: Will not use its power of eminent domain to acquire the property. The homeowner will be informed in writing of the jurisdictions estimate of the fair market value to the property. These notices will be issued at the earliest possible date. 2. Unit occupied by tenant. The homeowner will receive the notifications stated above. In additions, the tenant will be issued a notice at the earliest possible date. The notice will include all information required under URA including a caution not to move prematurely, and information on relocation assistance. Information on comparable replacement units will be provided, as well as material on social CDC Page 22 services and housing programs. Upon moving, the tenants will be provided with moving expenses and rent differential, (per URA) where applicable. A notice informing tenants of the date they will be required to move will be issued. If a unit is vacant at the time of negotiation of sales, or becomes vacant later, any prospective tenant will be notified of the pending sale, informed that they may be required to move, and that they will not be entitled to relocation assistance. The issuing of all notices and the processing of relocation assistance will be the responsibility of the Community Development Commission of Mendocino County. XXIV. AFFIRMATIVE MARKETING/EQUAL OPPORTUNITY Affirmative Action The First Time Homebuyers Program will utilize affirmative marketing procedures. The purpose of these marketing procedures is to attract eligible persons to the program, without regard to race, color, national origin, sex, religion, familial status or disability. To insure that affirmative marketing goals are met, the following are required: 1. Inform the public about federal housing laws by displaying fair housing logo on generated materials, posting fair housing posters in visible public areas in CDC offices and providing fair housing information to all participants at housing counseling sessions. Copies of distributed fair housing materials will be kept in file by the CDC. 2. The CDC will advertise the program via local newspapers and radio when possible. Also, information will be provided to local lenders, realtors, and title companies. 3. Outreach will be done annually to community groups and service organizations with the focus being on groups that serve those who are less likely to access information through the means listed previously (i.e. disabled, developmentally disabled, farmworkers, non-English speaking, etc.). 4. Those responding to marketing efforts requiring special accommodations will be accommodated whenever possible (i.e. counseling with translators for non-English speakers, counseling with case workers for developmentally disabled, etc.). 5. Records detailing affirmative marketing efforts will be maintained by the CDC. These records will be assessed annually by the CDC and compared to most recent data. If it is found from this review that affirmative marketing efforts are under serving any populations of the City of Ukiah, then procedures will be developed to outreach to those populations. Equal Opportunity The CDC will keep accurate, up-to-date records of the following (as required by 24 CFR 107.30): 1. Race, ethnicity gender disability, and age of the target area residents; 2. The location of housing-related activities; 3. Demographic characteristics of all applicants and those who have been selected; 4. The efforts utilized to inform and recruit potential applicants; and 23 5. The criteria for selecting participants. The CDC will keep the following records for the most recent five year period, as required by 24 CFR 92.598: 1. Data on applications received from each racial and ethnic group and single-headed households, and on those chosen to participate in or benefit from any program or activity funded in whole or in part with HOME funds or other funding sources; 2. Documentation of actions undertaken to meet the requirements of Section 3, when applicable; 3. Documentation of actions taken to affirmatively market the program; 4. Documentation of actions taken to comply with affirmative action procedures for projects with 5 or more units, when applicable, and 5. Documentation and data on the steps taken to implement the required outreach to MBE/WBEs, including data indicating the racial/ethnic or gender character of each business receiving a HOME-funded contract or subcontract of $25,000 or more; the amount of the contract or subcontract; and documentation of the steps taken to assure that MBE/WBEs are encouraged to obtain or compete for contracts and subcontracts as sources of supplies, equipment, construction and services, when applicable. XXV. INSPECTION PROCEDURES Inspections will be performed by Housing Inspectors of the Community Development Commission of Mendocino County. Housing Inspectors will inspect for the following: 1. Compliance with HQS standards (not applicable to HOME) 2. Compliance with local codes 3. Visual assessment for lead-based hazards 4. For HOME, compliance with local code and health and safety Housing Inspectors have been trained in housing quality standards and local applicable codes Persons authorized to perform housing inspections include the Housing Rehabilitation Specialist, Community Development Manager, and Housing Programs Housing Inspectors. They have been certified for conducting visual assessment for lead hazards. Inspections must be performed during the escrow period. All information in the inspection process is documented and provided to the buyer. All remedial actions must be taken and a final inspection with approval must be performed before a loan is approved. For properties built prior to 1978 the CDC and City will ensure a copy of the FTHB checklist is completed and placed in each purchaser's file. Properties built prior to 1978 will also be inspected for defective paint surfaces. If defective paint surfaces are found, they must be properly stabilized before HOME FTHB loans can be provided. All properties eligible for purchase must meet health and safety code requirements at the time of occupancy and no later than six months after transfer of ownership. If the inspector finds that health and safety or code violations still exist, HOME FTHB loans will not be provided. Properties assisted with HOME FTHB funds must also meet written standards for rehabilitation no later than two years from transfer of ownership. Written standards for rehabilitation include local City and applicable county codes, ordinances, and zoning requirements. 24 ATTACHMENT A LOAN DOCUMENTS 25 "PUBLIC AGENCY BUSINESS: FREE." This document is presented for recording pursuant to Gov. Code 6103. Community Development Commission of Mendocino County. RECORDING REQUESTED BY WHEN RECORDED MAIL TO: Community Development Commission 1076 North State Street Ukiah, CA 95482 CITY OF UKIAH FIRST TIME HOMEBUYER (FTHB) LOAN DEED OF TRUST (HOME) THIS DEED OF TRUST CONTAINS PROVISIONS RESTRICTING ASSUMPTIONS RESALE AND RECAPTURE FEATURES THIS DEED OF TRUST is made this _ day of , 201 between as Trustor; as Trustee and THE City of Ukiah, as Beneficiary. TRUSTOR, in consideration of the indebtedness recited and the trust created in this Deed of Trust, irrevocably grants and conveys to Trustee, in trust, with power of sale, the following described property located in the City of Ukiah, State of California: "This Deed of Trust is Junior and Subordinate to the Deed of Trust recording concurrently herewith for the benefit of (the Beneficiary)." Together with all the improvements now or hereafter erected on the property, which has the address of and all easements, rights, appurtenances, rents (subject, however, to the rights and authorities given in this Deed of Trust to Lender to collect and apply such rents), royalties, mineral, oil and gas rights and profits, water, water rights, and water stock, and all fixtures now or hereafter attached to the property, all of which, including replacements and additions thereto, shall be deemed to be and remain a part of the property covered by this Deed of Trust; and all of the foregoing, together with said property, are referred to in this Deed of Trust as the "Property." The loan evidenced by the Note and secured by this Security Instrument (the "Loan") is being made pursuant to (the Home Investment Partnerships Program and the regulations issued thereunder (Title II, the Cranston-Gonzalez National Affordable Housing Act, Public Law No. 101-625, 104 Stat. 4079 (1990), 24 C.F.R. Part 92) (the "Home Program")). TO SECURE to Lender (a) the repayment of the indebtedness evidenced by Borrower's note dated, and incorporated by reference in this Deed of Trust (the "Note") in the principal sum of ($XXXX) plus contingent interest on the principal sum in the amount and on the terms described in the Note; the payment of all other sums, with interest thereon, advanced to protect the security of this Deed of Trust; and the performance of the covenants and agreements of the Borrower contained in this Deed of Trust in the Note. 26 Borrower covenants that Borrower is lawfully seised of the estate conveyed by this Deed of Trust and has the right to grant and convey the Property, that, with the exception of a prior deed of trust securing a loan in the principal amount of $XXXXX . Property is unencumbered, and that Borrower will warrant and defend generally the title to the Property against all claims and demands, subject to any declarations, easements or restrictions listed in a schedule of exceptions to coverage in any title insurance policy insuring Lender's interest in the Property. Borrower and Lender covenant and agree as follows: Payment of Principal and Interest. Borrower shall promptly pay when due the principal of and interest on the indebtedness evidenced by the Note. 2. Occupancy. Borrower and his or her immediate family shall be the sole occupants of the Property conveyed by this Deed of Trust. This restriction includes, but is not limited to, prohibition of Borrower's renting or otherwise leasing the Property. 3. Sale or Transfer of Property. Before sale or transfer of title, the Borrower, or the Borrower's representative, shall notify the Lender of his or her intention to sell or otherwise transfer title. Except as otherwise provided in this Deed of Trust, when Borrower transfers title, the entire Loan which is evidenced by the Note shall be immediately due and payable. Where title is transferred to or otherwise altered to include or favor a spouse or person signing the Note, and such spouse or person resides on the Property conveyed in this Deed of Trust and is independently eligible for assistance under the Program, the transfer or alteration in title shall not result in acceleration of the Loan evidenced by the Note. Similarly, when a spouse or person signing the Note takes title to the Property which secures this Deed of Trust by devise, descent or by operation of law upon the death of a joint tenant and such spouse or person resides on the Property and is independently eligible for assistance under the Program, the transfer of title shall not result in acceleration of the loan evidenced by the Note. 4. Resale-Recapture Provisions. The following provisions restricting resale per HOME regulations will apply for a period of up to 15 years. This is known as the "affordability period". The net proceeds shall be repaid to the State Recipient. (City of Ukiah) to assist another first-time homebuyer to obtain a home within the City of Ukiah. The amount of the HOME subsidy repaid to the State Recipient (City of Ukiah), at sale, is called "net proceeds." Net proceeds includes the sales price minus loan repayment and closing costs. If the net proceeds are insufficient to repay both the HOME investment plus the homeowner's investment, the City of Ukiah may forgive a prorated share of the net proceeds based on the amount of time the homeowner occupied the unit during the afford ability period. When the net proceeds are not enough to repay the full HOME investment, the homeowner will not recover more than his or her investment. 5. Charges; Liens. Borrower shall pay all taxes, assessments and other charges, fines and impositions attributable to the Property which may attain a priority over this Deed of Trust when due. Borrower shall promptly pay when due all installments or payments required by and comply with all obligations of any deed of trust that is prior to this Deed to Trust. 6. Hazard Insurance. Borrower shall keep the improvements now existing or hereafter erected on the Property insured against loss by fire, hazards included within the term "extended coverage" and such other hazards as Lender may require and in such amounts and for such periods as Lender may require. 27 All insurance policies and renewals thereof shall be in form acceptable to Lender and shall include a standard mortgagee clause in favor of and in a form acceptable to Lender. Subject to the rights of the holder of a prior deed of trust, Lender shall have the right to hold the policies and renewals thereof, and Borrower shall promptly furnish to Lender all renewal notices and all receipts of paid premiums. In the event of loss, Borrower shall give prompt notice to the insurance carrier and Lender. Lender may make proof of loss, if not made promptly by Borrower. Unless Lender and Borrower otherwise agree in writing, insurance proceeds shall be applied to restoration or repair of the Property damaged, provided such restoration or repair is economically feasible and the security of this Deed of Trust is not thereby impaired. If such restoration or repair is not economically feasible, or if the security of this Deed of Trust would be impaired, the insurance proceeds shall be treated as if received from a sale of the Property, or, of that part of the Property damaged and shall be applied, in the manner described in Section 11 herein below, to the sums secured by this Deed of Trust. If the property is abandoned by Borrower, or if Borrower fails to respond to Lender within 30 days from the date notice is mailed by Lender to Borrower that the insurance carrier offers to settle a claim for insurance benefits, Lender is authorized to collect and apply the insurance proceeds at Lender's option either to restoration or repair of the Property or to the sums secured by this Deed of Trust. 7. Subordination. Agency and Borrower acknowledge and agree that this Security Instrument is subject and subordinate in all respects to the liens, terms, covenants and conditions of the First Deed of Trust and to all advances heretofore made or which may hereafter be made pursuant to the First Deed of Trust including all sums advanced for the purpose of (a) protecting or further securing the lien of the First Deed of Trust, curing defaults by the Borrower under the First Deed of Trust, or for any other purpose expressly permitted by the First Deed of Trust or (b) constructing, renovating, repairing, furnishing, installing fixtures or equipping the Property. The terms and provisions of the First Deed of Trust are paramount and controlling, and they supersede any other terms and provisions hereof in conflict therewith. In the event of a foreclosure or deed in lieu of a foreclosure of the First Deed of Trust, or an assignment of the Deed of Trust to the Secretary of Housing and Urban Development, any provisions herein or any provisions in any other collateral agreement restricting the use of the Property to low or moderate income households or otherwise restricting the Borrower's ability to sell the Property shall have no further force or effect on subsequent owners or purchasers of the Property. Any person, including his successors or assigns (other than the Borrower or a related entity of the Borrower), receiving title to the Property through a foreclosure or deed in lieu of foreclosure of the First Deed of Trust shall receive title to the Property free and clear from such restrictions. Further, if the Senior Lien Holder acquires title to the Property pursuant to a deed in lieu of foreclosure, the lien of this Security Instrument shall automatically terminate upon the Senior Lien Holder's acquisition of title, provided that the Agency has been given written notice of a default under the First Deed of Trust and the Agency shall not have cured the default under the First Deed of Trust, or diligently pursued curing the default as determined by the Senior Lien Holder, within the 60-day period provided in such notice sent to the Agency. 8. Preservation and Maintenance of Property. Borrower shall keep the Property in good repair and shall not commit waste or permit impairment or deterioration of the Property. 9. Protection of Lender's Security. If Borrower fails to perform the covenants and agreements contained in this Deed of Trust, or if any action or proceeding is commenced which materially affects Lender's interest in the Property, including but not limited to, default on or foreclosure or a prior deed of trust, eminent domain, insolvency, code enforcement, or arrangements or proceedings involving a bankrupt or decedent, then Lender at Lender's option, upon notice to 28 Borrower, make such appearances, disburse such sums and take such action as is necessary to protect Lender's interest including, but not limited to, disbursement of reasonable attorney's fees and entry upon the Property to make repairs. Any amounts disbursed by Lender pursuant to this Section 9, with interest thereon, shall become additional indebtedness of Borrower secured by this Deed of Trust. Unless Borrower and Lender agree to other terms of payment, such amounts shall be payable upon notice from Lender to Borrower requesting payment thereof, and shall bear interest from date of disbursement at the rate of 15 percent per annum, unless payment of interest at such rate would be contrary to applicable law, in which event such amounts shall bear interest at the highest rate permissible under applicable law. Nothing contained in this Section 9 shall require lender to incur any expense or take any action hereunder. 10. Inspection. Lender may make or cause to be made reasonable entries upon and inspections of the Property, provided that Lender shall give Borrower notice prior to any such inspection specifying reasonable cause therefor related to Lender's interest in the Property. 11. Condemnation. Subject to the rights of the holder of a prior deed of trust, the proceeds of any award or claim for damages, director or consequential, in connection with any condemnation or other taking of the Property, or part thereof, or for conveyance in lieu of condemnation, are hereby assigned and shall be paid to Lender. In the event of a total taking of the Property, the proceeds shall be treated as if received from a sale of the Property. 12. Forbearance by Lender Not a Waiver. Any forbearance by Lender in exercising any right or remedy hereunder, or otherwise afforded by applicable law, shall not be a waiver of or preclude the exercise of any such right or remedy. The procurement of insurance of the payment of taxes or other liens or charges by Lender shall not be a waiver of Lender's right to accelerate the maturity of the indebtedness secured by this Deed of Trust. 13. Remedies Cumulative. All remedies provided in this Deed of Trust are distinct and cumulative to any other right or remedy under this Deed of Trust or afforded by law or equity, and may be exercised concurrently, independently or successively. 14. Successors and Assiqns Bound; Joint and Several Liability. The covenants and agreements contained in this Deed of Trust shall bind, and the rights hereunder shall inure to, the respective successors and assigns of Lender and Borrower, subject to the provisions of Section 17 hereof. All covenants and agreements of Borrower shall be joint and several. 15. Notice. Except for any notice required under applicable law to be given in another manner, (a) any notice to Borrower provided for in this Deed of Trust shall be given by mailing such notice by certified mail addressed to Borrower at the Property Address or at such other address as Borrower may designate by notice to Lender as provided in this Section 15; and (b) any notice to Lender shall be given by certified mail, return receipt requested, to Lender's addresses stated in this Deed of Trust or to such other address as Lender may designate by notice to Borrower as provided in this Section 15. Any notice provided for in this Deed of Trust shall be deemed to have been given to Borrower or Lender when given in the manner designated herein. 16. Governing Law; Severability. This Deed of Trust shall be governed by the law of California. In the event that any provision or clause of this Deed of Trust or the Note conflicts with applicable law, such conflict shall not affect other provisions of this Deed of Trust or the Note which can be given effect without the conflicting provision, and to this end the provisions of the Deed of Trust and the Note are declared to be severable. 29 17. Transfer of the Property. If all or any of the Property or an interest in it is sold or transferred by Borrower, excluding permitted transfers to a spouse or other person signing the Note in the manner described in Section 3 above, all the sums secured by this Deed of Trust shall be immediately due and payable. In the event of such an acceleration, Lender shall mail Borrower notice of the acceleration in accordance with Section 15 hereof. Such notice shall provide a period of not less than 30 days from the date the notice is mailed within which Borrower may pay the sums declared due. If Borrower fails to pay such sums prior to the expiration of such period, Lender may, without further notice or demand on Borrower, invoke any remedies permitted by law, including but not limited to power of sale. 18. Default by Borrower. Upon default by Borrower in payment of any indebtedness secured hereby or in performance of any agreement hereunder, Lender may declare all sums secured hereby immediately due and payable by delivery to Trustee of written declaration of default and demand for sale and of written notice of default and of election to cause to be sold said property, which notice Trustee shall cause to be filed for record. After the lapse of such time as may then be required by law following the recordation of said notice of default, and notice of sale having been given as then required by law, Trustee, without demand on Lender, shall sell said property at the time and place fixed by it in said notice of sale at public auction to the highest bidder for cash in lawful money of the United States, payable at the time of sale. 19. Borrower's Right to Reinstate. Notwithstanding Lender's acceleration of the sums secured by this Deed of Trust, Borrower shall have the right to have any proceedings begun by Lender to enforce covenants of this Deed of Trust relating to sums due and payable by Borrower discontinued at any time prior to five days before the Property is first scheduled for sale pursuant to the power of sale contained in this Deed of Trust or at any time prior to entry of a judgment enforcing this Deed of Trust, if: (a) Borrower pays Lender all sums which would be then due under this Deed of Trust, and (b) the Borrower pays all reasonable expenses incurred by Lender and Trustee in enforcing the covenants and agreements of Borrower contained in this Deed of Trust and in enforcing Lender's and Trustee's remedies, including but not limited to, reasonable attorney's fees; and © Borrower takes such action as Lender may reasonably require to assure that the lien of this Deed of Trust, Lender's interest in the Property, and Borrower's obligation to pay the sums secured by this Deed of Trust shall continue unimpaired. Upon such payment and cure by Borrower, this Deed of Trust and the obligations secured hereby shall remain in full force and effect as if no acceleration had occurred. 20. Reconveyance. Upon payment of all sums secured by this Deed of Trust, Lender shall request Trustee to reconvey the Property and shall surrender this Deed of Trust and all notes evidencing indebtedness secured by this Deed of Trust to Trustee. Trustee shall reconvey the Property without warranty and without charge to the person or persons legally entitled thereto. Such person or persons shall pay all costs of recordation, if any. 21. Substitute Trustee. Lender, at Lender's option, may from time to time remove Trustee and appoint a successor trustee to any Trustee appointed under this Deed of Trust. Without conveyance of the Property, the successor trustee shall succeed to all the title, power and duties conferred upon the Trustee in this Deed of Trust and by applicable law. 22. Request for Notices. Borrower requests that copies of the notice of default and notice of sale be sent to Borrower's address which is the Property Address and to the Lender at: 30 COMMUNITY DEVELOPMENT COMMISSION 1076 NORTH STATE STREET U KIAH, CA 95482 IN WITNESS THEREOF, Borrower has executed this Deed of Trust. Borrower Date Borrower Date State of California: City of Ukiah: ss. On (date), before me, the undersigned, a notary public for the state, personally appeared personally known to me (or proved to me on the basis of satisfactory evidence) to be the person(s) whose names(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorize capacity (ies), and that by his/her/ their signature(s) on the instrument the person(s) acted, executed the instrument. WITNESS my hand and official seal. (Signature of Notary) (Seal of Notary) Printed Name) My commission expires CITY OF UKIAH FIRST TIME HOMEBUYER LOAN (HOME) PROMISSORY NOTE $ UKIAH, CALIFORNIA FOR VALUE RECEIVED, THE UNDERSIGNED, Borrower(s) promises to pay on order THE CITY OF UKIAH, Lender, the principal sum of ($XXXXX) with interest from the date of execution on the unpaid principal at the simple interest rate of Three percent (3) per annum, until paid or upon the sale of the property located at: which secures this promissory note on all that certain real property situated in the City of Ukiah, State of California and being more particularly described as follows: All notices shall be sent to the following agency which shall provide service on this loan: Community Development Commission of Mendocino County 1076 North State Street Ukiah, CA 95482 Maturity date on this Note includes sale of property; change of title; or when property ceases to be primary residence of loan recipient. Payment of both principal and accrued interest is deferred until the earlier of (1) The expiration of 30 years from the date of execution of this note by the Borrower(s), or (2) The voluntary or involuntary transfer of title to or any interest in the real property that is the security for this Note, except a transfer to a Borrower's surviving spouse, or (3) Borrower and his or her immediate family are no longer occupants of the Property, at which time the whole of the unpaid principal and interest, plus applicable fees, charges and penalties, is immediately due and payable in full, unless otherwise approved by the County in its absolute discretion. The City may approve loan assumption, at its option, only if subsequent purchasers or transferee of the property meet the eligibility requirements then in effect per the Home Investment Partnership Program (HOME) regulations, Title 25 California Code of Regulations. Should loan assumption be approved the new purchaser must execute an assumption agreement confirming the agreement with the terms of the FTHB loan. The whole of the unpaid principal and interest, plus applicable fees, charges and penalties, shall also become immediately due and payable in full, at the option of the City should the real property described above be refinanced or further encumbered without the City's written consent. Failure of the City to exercise such option shall not constitute a waiver of such default, regardless of subsequent acceptance of any payment hereunder by the City. The undersigned reserves the right to prepay at any time all or any part of the principal amount of this Note, without the payment of penalties or premiums. All payments shall be credited first on interest then due, then on principal. Interest shall thereupon cease on principal so credited. This NOTE is secured by a Deed of Trust given to as trustee, and duly filed for record in Mendocino County. Any notice to Borrower provided for in this Note shall be given by mailing such notice by certified mail addressed to Borrower at the Property Address stated, or to such other address as Borrower may designate by notice to the Lender. Any notice to the Lender shall be given by mailing such notice by certified mail, return receipt requested, to the Lender at the address stated in the first paragraph of this Note, or at such other address as may have been designated by notice to Borrower. This indebtedness evidenced by this Note is secured by a Deed of Trust and reference is made to the Deed of Trust for rights as to acceleration of the indebtedness evidenced by this Note, including Section 17, which provides as follows: "Transfer of the Property; Assumption. If all or any part of the Property or an interest therein is sold or transferred by Borrower, excluding permitted transfers to a spouse or other person signing the Note in the manner described in Section 3 of the Deed of Trust, all the sums secured by this Note shall be immediately due and payable. In the event of such acceleration, Lender shall mail Borrower notice of acceleration in accordance with Section 15 thereof. Such notice shall provide a period of not less than 30 days from the date the notice is mailed within which Borrower may pay the sum declared due. If Borrower fails to pay such sums prior to the expiration of such period, Lender may, without further notice or demand on Borrower, invoke any remedies permitted by law, including but not limited to power of sale." IN WITNESS WHEREOF, this note has been duly executed by the undersigned as of its date. Borrower Dated: CDC Page 33 ATTACHMENT TO DEED OF TRUST (HOME DEFERRED PAYMENT LOAN) ACCELLERATION ON TRANSFER OF ENCUMBRANCE OF PROPERTY Beneficiary shall have the right, without prior notice, to declare all sums secured by this Deed of Trust, irrespective of their stated due date, immediately due and payable and may exercise all rights and remedies provided in this Deed of Trust should any of the following events occur: 1. Upon the death of the borrower or borrowers if there is more than one; 2. Upon transfer of the property to a person or persons other than an eligible member of the immediate family (spouse, children, parents or grandparents) of the borrower, but subject to the provisions hereinafter stated; 3. The borrower no longer occupies the unit as his or her principle residence for reasons other than medical treatment or disability. "Eligible member" as used in item (2) above, means a person that meets the City of Ukiah First Time Homebuyer Program income guidelines for eligibility for a deferred payment loan. Eligibility shall be considered at the time of the transfer by borrower to said member of the immediate family. The member of the immediate family will be permitted to assume this obligation only if he/she meets the Deferred Payment Loan eligibility requirements. If he/she does not meet said requirement, the Promissory Note shall become due and payable. "Transfer" shall include execution of a deed, a gift, a sale, a contract to sell, an option to purchase, a lease, a refinance, an encumbrance, a transfer or conveyance to a living trust or other trust, transfer as a result of death, or any other transaction whereby the borrower obtains a financial gain from the subject property. Borrower Signature Borrower Signature Date Date CDC Page 34 ATTACHMENT B HOME PROGRAM INCOME REUSE PLAN CDC Page 35 REUSE PLAN GOVERNING PROGRAM INCOME FROM HOME INVESTMENT PARTNERSHIPS PROGRAM (HOME)-ASSISTED ACTIVITIES FOR THE CITY OF UKIAH 1. Purpose The purpose of this plan is to establish guidelines on the policies and procedures for the administration and utilization of program income received as a result of the activities funded under the State Home Investment Partnerships (HOME) Program. II. Need for Plan Governing Reuse of Program Income This Reuse Plan is intended to satisfy the requirements specified in federal statute and regulation at 24 CFR 92.503 (a). These statutory and regulatory sections permit a recipient to retain program income for HOME-eligible activities. III. Program Income Defined Program income is defined in federal regulation at 24 CFR 92.2 which specifies that program income means gross income received by the participating jurisdiction, State recipient, or a subrecipient directly generated from the use of HOME funds or matching contributions. When program income is generated by housing that is only partially assisted with HOME funds or matching funds, the income shall be prorated to reflect the percentage of HOME funds used. Program income definition (from the California Department of Housing and Community Development Program Management Manual [Revised 3/30/00]): "Program income definition: for the purposes of the HOME program, program income (PI) means the gross income received by the participating jurisdiction (PJ) or State Recipient, or by another party at the direction of the PJ or State Recipient (or its contractor subrecipient) which is directly generated from the use of HOME Program or match funds. Income from open and closed HOME Program contracts generated under loan or grant security documents of all HOME Program projects remains PI and retains that identity throughout. The following are some of the most common examples of PI in the HOME Program: 1) Payments of principal and interest on loans made using HOME Program funds 2) Interest earned on PI pending its disposition and on HOME Program funds held in a local account 3) Net proceeds for the disposition by sale or long-term lease of real property purchased or improved with HOME Program funds 4) Gross income from the use of rental or real property that has been constructed or improved with HOME Program funds and that is owned (in whole or in part) by the State Recipient/CHDO [Community Housing Development Organization] PI includes interest earned on HOME Program funds during the 15-day period between the State's receipt of new HOME Program funds from IDIS [the State] and actual disbursement of funds." CDC Page 36 IV. Program Income, Recaptured Funds and Affordability Periods HOME funds used to assist homebuyers have affordability requirements. The minimum affordability requirements based on the amount of HOME assistance as set by 24 CFR 92.254 are as follows: Under $15,000 5 ears $15,000 to $40,000 10 years Over $40,000 15 ears During the period of affordability, money paid back on the HOME assistance will be either program income or recapture funds. Funds are considered recaptured funds on a pro rata basis to reflect the number of years the homeowner has owned or occupied the housing when payment is made against the required affordability period (24 CFR 92.254(a)(5)(ii)(A)(2)). V. Program Income, Recaptured Funds and Administrative Costs Up to 10% of Program Income maybe used for administration. 100% of Recaptured Funds must be invested in another HOME-eligible activity. VI. Reuses of Program Income and Recaptured Funds Program Income The City's program income will be used only to fund eligible HOME activities as specified in federal statute 24 CFR 92.205(a): 1) HOME funds may be used by a participating jurisdiction to provide incentives to develop and support affordable rental housing and homeownership affordability through the acquisition (including assistance to homebuyers), new construction, reconstruction, or rehabilitation of non- luxury housing with suitable amenities, including real property acquisition, site improvements, conversion, demolition, and other expenses, including financing costs, relocation expenses of any displaced persons, families, businesses, or organizations; to provide tenant-based rental assistance, including security deposits; to provide payment of reasonable administrative and planning costs; and to provide for the payment of operating expenses of community housing development organizations. The housing must be permanent or transitional housing. The specific eligible costs for these activities are set forth in 92.206 through 92.209. 2) Acquisition of vacant land or demolition must be undertaken only with respect to a particular housing project intended to provide affordable housing. 3) Conversion of an existing structure to affordable housing is rehabilitation, unless the conversion entails adding one or more units beyond the existing walls, in which case, the project is new construction for purposes of this part. 4) Manufactured housing. HOME funds may be used to purchase and/or rehabilitate a manufactured housing unit, or purchase the land upon which a manufactured housing unit is located. Except for existing, owner-occupied manufactured housing that is rehabilitated with HOME funds, the manufactured housing unit must, at the time of project completion, be connected to permanent utility hook-ups and be located on land that is owned by the manufactured housing unit owner or land for which the manufactured housing owner has a CDC Page 37 lease for a period at least equal to the applicable period of affordability. Program income must be disbursed from the State Recipient's local account for an eligible HOME Program activity prior to drawing down additional HOME Program funds. Up to 10 percent of PI dollars has to be spent on administrative and planning costs as per 24 CFR Section 92.206(d)(6). The City reserves to itself the options of utilizing program income to fund a HOME-eligible activity that has been written into a general allocation grant application; or, to amend an open HOME grant to include an additional HOME-eligible activity that will be funded from program income. Recaptured Funds Recaptured funds must be invested in any of the HOME-eligible activities listed above for Program Income except Recaptured Funds cannot be used for administration costs. Program income received shall be substantially expended at the end of the Program Year. The City shall comply with all State HOME reporting requirements, including submittal of the required Annual Program Income Report. The City shall ensure that the use of program income under this under this Plan complies with all HOME program requirements. To ensure ongoing compliance with HOME requirements, the City shall utilize the latest available State HOME Program Grant Management Manual for guidance on compliance procedures and policies. Program income must be returned to the Department of Housing and Community Development after the Standard Agreement has expired. CDC Page 38 ATTACHMENT C MENDOCINO COUNTY INCOME LIMITS AND PER-UNIT SUBSIDY LIMITS AND MAXIMUM PURCHASE PRICE/ AFTER REHABILITATION VALUE CDC Page 39 INCOME LIMTS FOR ALL OF MENDOCINO COUNTY - 2011 Number of 1 2 3 4 5 6 7 8+ Persons in Household Income $32,450 $37,050 $41,700 $46,300 $50,050 $53,750 $57,450 $61,150 Limit (Yearly) SUBSIDY LIMTS PER UNIT - SECTION 221(d) (3) MENDOCINO COUNTY, EFFECTIVE JANUARY 1, 2011 Number of 0 1 2 3 4 Bedrooms in Household Subsidy Limit $ 113,859 $ 130,521 $ 158,713 $ 205,323 $ 225,382 SINGLE-FAMILY MAXIMUM PURCHASE PRICE/AFTER REHABILITATION VALUE JANUARY 1, 2011 One-Unit 203 (b) 3 Limit Mendocino County $362,790 CDC Page 40 city v}' Ukiah ITEM NO.: 13c MEETING DATE: AGENDA SUMMARY REPORT August 3, 2011 SUBJECT: AWARD CONTRACT FOR REHABILITATION OF TERTIARY TREATMENT UNITS AT THE UKIAH WASTEWATER TREATMENT PLANT SPECIFICATION NO. 10-18 TO ERS INDUSTRIAL SERVICES, INC., FREMONT, CA IN THE AMOUNT OF $330,540.60 WITH AN AUTHORIZATION OF $33,054 FOR POTENTIAL CHANGE ORDERS AND APPROVE BUDGET AMENDMENT Background: The tertiary treatment units consist of four 2-MGD (million gallons per day) Siemens Microfloc Trident filtration units that are a necessary part of the treatment process for effluent disposal between October 1 and May 14. Discussion: The City distributed plans and specifications to 15 builders' exchanges and 5 contractors for Rehabilitation of Tertiary Treatment Units at the Ukiah Wastewater Treatment Plant Specification No. 10-18. The City publicly advertised this project on June 26 and July 3, 2011, in the Ukiah Daily Journal. A copy of the Notice to Bidders was sent to 153 contractors including all License Class A contractors on the City's 2011 Qualified Contractors List. In addition, the plans and specifications were posted on the City's website. Sealed proposals were received and opened by the City Clerk on July 26, 2011 at 2:00 PM. One contractor submitted a bid. The lowest responsive, responsible bidder is ERS Industrial Services, Inc. with a bid of $330,540.60. The engineer's estimate for this project is $200,000. The bid tabulation sheet is attached. City staff has spoken to the District Manager of the Ukiah Valley Sanitation District (UVSD) regarding utilization of the 612 fund balance. The District Manager supports the award of the bid and will seek approval on August 18, 2011 from the UVSD for the budget amendment. The award of contract and the work must proceed prior to the UVSD regularly scheduled meeting. This is in order to get the four units running by October 1St so the City can discharge any accumulated effluent and retain the maximum amount of pond capacity. If the bid is awarded, compensation for the performance of the work will be based on a lump sum bid for the job. As with construction projects, there may be cost overruns by reason of unforeseen work. Policy Resolution No. 13 authorizes the responsible Department Head, with approval of the City Manager, to issue change orders not to exceed 10 percent of the original contract sum or $5,000 whichever is greater provided that no change, when added to the original contract sum, exceeds the amount budgeted for the project. Continued on Page 2 Recommended Action(s): 1) Award contract for Rehabilitation of Tertiary Treatment Units at the Ukiah Wastewater Treatment Plant, Specification No. 10-18 to ERS Industrial Services, Inc, Fremont, CA in the amount of $330,540.60; authorize $33,054 for potential change orders; and approve budget amendment. Alternative Council Option(s): (1) Reject bid. (2) Reject bid and direct staff to negotiate with bidder for revised scope of work. (3) Provide staff with other direction. Citizens advised: N/A Requested by: Tim Eriksen, Director of Public Works / City Engineer Prepared by: Alan Hasty, Assistant Engineer Coordinated with: Jane Chambers, City Manager; and Rick Seanor, Deputy Director of Public Works Attachments: 1. Bid Tabulation Approved: a r Ja ers, City Manager Subject: Award of Contract for Rehabilitation of Tertiary Treatment Units at the Ukiah Wastewater Treatment Plant, Specification No. 10-18 Meeting Date: August 3, 2011 Page 2 of 2 Staff recommends that the City Council award the contract for Rehabilitation of Tertiary Treatment Units at the Ukiah Wastewater Treatment Plant Specification No.10-18 to ERS Industrial Services, Inc. with authorization of $33,054 for potential change orders, and approve the budget amendment. Fiscal Impact: Budgeted FY 11/12 IX-1 gete F1 New Appropriation F1 Not Applicable -1 IX Budget Amendment Required Amount Budgeted Source of Funds (title and Account Number Addit.Ap propriation Requested $250,000 WWTP 612.3580.800.000 612 Fund Balance 612 Fund Balance $113,594.60 Aftachment I U) 1.1. 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