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HomeMy WebLinkAbout11212013 -packet (93% posted) CITY OF UKIAH PLANNING COMMISSION AGENDA Thursdav November 21, 2013 6:00 P.M. 1. CALL TO ORDER 6:00 P.M. CITY COUNCIL CHAMBERS UKIAH CIVIC CENTER, 300 SEMINARY AVENUE 2. ROLL CALL COMMISSIONERS CHRISTENSEN, DOBLE, SANDERS, PRUDEN, CHAIR WHETZEL 3. PLEDGE OF ALLEGIANCE 4. APPROVAL OF MINUTES The minutes from the following meetings will be available for review and approval at the December 11, 2013 meeting: A. November 13, 2013 5. COMMENTS FROM AUDIENCE ON NON-AGENDA ITEMS The Planning Commission welcomes input from the audience. 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. 6. APPEAL PROCESS All determinations of the Planning Commission regarding major discretionary planning permits are final unless a written appeal, stating the reasons for the appeal, is filed with the City Clerk within ten (10) days of the date the decision was made. An interested parry may appeal only if he or she appeared and stated his or her position during the hearing on the decision from which the appeal is taken. For items on this agenda, the appeal must be received by December 2, 2013 by 5:00 p.m. 7. SITE VISIT VERIFICATION 8. VERIFICATION OF NOTICE 9. PUBLIC HEARINGS A. Costco Wholesale Project Environmental Impact Report (EIR), Airport Park Boulevard (File No. 11-1-REZ-SDP-CC-PC and 11-16-EIR-CC). Planning Commission consideration and possible recommendation to the City Council to certify the Costco Wholesale Project Environmental Impact Report (EIR). The Project requires City Council approval of a Rezoning and Planning Commission approval of a Site Development Permit to allow construction of a 148,000 square Americans with Disabilities Act Accommodations. 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. Please call (707)463-6752 or(707)463-6207 to arrange accommodations. foot Costco Warehouse store and 20-pump fueling station, 607 parking spaces, landscaping, and associated site improvements on a 15.33 acre parcel on the east side of Airport Park Boulevard, south of Ken Fowler Auto Center. The Project includes: a Costco store with a bakery, pharmacy, optical center, hearing aid testing center, food court, photo center, tire sales and installation; fueling station with 16 pumps with the ability to expand to 20 pumps; sales of 3,800 to 4,000 products; and employment of 175 to 200 people. The Planning Commission held a public hearing on the Costco Wholesale Project Draft EIR on February 27, 2013. B. Costco Wholesale Project Rezoning and Statement of Overriding Considerations, Airport Park Boulevard (File No. 11-1-REZ-SDP-CC-PC and 11-16-EIR-CC). Planning Commission consideration and possible recommendation to the City Council to approve a rezoning of the Costco Project site and direction to staff on the Statement of Overriding Considerations. The Project requires City Council approval of a Rezoning and Planning Commission approval of a Site Development Permit to allow construction of a 148,000 square foot Costco Warehouse store and 20-pump fueling station, 607 parking spaces, landscaping, and associated site improvements on a 15.33 acre parcel on the east side of Airport Park Boulevard, south of Ken Fowler Auto Center. The rezoning would amend the Airport Industrial Park Planned Development Land Use Map to change the land use designation of the Costco Project site from Light Industrial/Mixed Use and Industrial/Auto Commercial to Retail Commercial. Approval of the project would also require City Council adoption of a Statement of Overriding Considerations for the significant and unavoidable TrafFic, Air Quality, and Global Climate Change impacts identified in the Costco Wholesale Project EIR. 10. PLANNING DIRECTOR'S REPORT 11. PLANNING COMMISSIONERS' REPORT 12. ADJOURNMENT Americans with Disabilities Act Accommodations. 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. Please call (707)463-6752 or(707)463-6207 to arrange accommodations. 1 UKIAH PLANNING COMMISSION 2 November 13, 2013 3 M i n utes 4 5 COMMISSIONERS PRESENT COMMISSIONERS ABSENT 6 Mike Whetzel, Chair 7 Kevin Doble 8 Linda Sanders 9 Laura Christensen 10 Judy Pruden 11 12 STAFF PRESENT OTHERS PRESENT 13 Charley Stump, Planning Director Listed below, Respectively 14 Jennifer Faso, Associate Planner 15 Cathy Elawadly, Recording Secretary 16 17 1. CALL TO ORDER 18 The regular meeting of the City of Ukiah Planning Commission was called to order by Chair Whetzel at 19 6:00 p.m. in the Council Chambers of the Ukiah Civic Center, 300 Seminary Avenue, Ukiah, California. 20 21 2. ROLL CALL 22 23 3. PLEDGE OF ALLEGIANCE - Everyone cited. 24 25 4. APPROVAL OF MINUTES — The minutes from the October 23, 2013 meeting are available for 26 review and approval. 27 28 M/S to approve the October 23, 2013 minutes, as submitted. Motion carried (-0). 29 30 5. COMMENTS FROM AUDIENCE ON NON-AGENDA ITEMS 31 32 6. APPEAL PROCESS — Chair Whetzel read the appeal process. For matters at this meeting, the 33 final date to appeal is November 4, 2013. 34 35 7. SITE VISIT VERIFICATION - Confirmed by Commission. 36 37 8. VERIFICATION OF NOTICE - Confirmed by staff. 38 39 9. PUBLIC HEARING 40 9A. Hertz Car Rental Facility, 724 South State Street, APN 003-031-19 (File No. 13-20-UP-PC). 41 Planning Commission consideration and possible action on Major Use Permit to allow the 42 operation of a car rental facility at 724 South State Street, APN 003-031-19. This item is 43 continued from the October 23, 2013 meeting. 44 45 Associate Planner Faso gave a staff report. 46 47 Commission: 48 49 PUBLIC HEARING OPENED: 6:15 p.m. 50 51 52 PUBLIC HEARING CLOSED: p.m. 53 54 Staff: 55 MINUTES OF THE PLANNING COMMISSION November 13, 2013 Page 1 1 M/S Sanders/Doble to approve Major Use Permit 13-20-UP-PC with Finding 1-7 and Conditions of 2 Approval 1-26. Motion carried (4-0). 3 4 9B. Myszka Place Lot 2, Minor Planned Development Amendment, APN 001-201-08 (File No. 13- 5 26-PDA-PC). Planning Commission consideration and possible action on a Minor Amendment to 6 the Myszka Place Planned Development to allow the removal of up to five trees on Lot 2 of 7 Myszka Place, 1210 Myszka Place. A Planning commission preliminary review of this project was 8 conducted at the October 23, 2013 Meeting. 9 10 Senior Planner Jordan gave a staff report: 11 12 Commission: 13 14 PUBLIC HEARING OPENED: 15 16 PUBLIC HEARING CLOSED: 17 18 Commission: 19 20 M/S to approve Myszka Place Lot 2 Minor Planned Development Amendment, File No 13-26-PDA-PC 21 with Findings 1-6 and Conditions of Approval 1-7. Motion carried (). 22 23 24 10. PRELIMINARY REVIEW 25 10A. Electron Cigarettes Store/Lounge in the Downtown Zoning Code boundaries Preliminary 26 Review, 411 South State Street, APN 002-269-08 (File No. 13-25-PRE-PC). Preliminary review 27 of a request on the sale of electronic cigarettes within the boundaries of the Downtown Zoning 28 Code. 29 30 11. NEW BUSINESS 31 11A. December Meeting Schedule. Planning Commission review and determination of the December 32 2013 meeting schedule. 33 34 12. PLANNING DIRECTOR'S REPORT 35 Senior Planner Jordan: 36 37 13. PLANNING COMMISSIONERS' REPORT 38 39 40 14. ADJOURNMENT 41 There being no further business, the meeting adjourned at p.m. MINUTES OF THE PLANNING COMMISSION November 13, 2013 Page 2 1 ITEM NO. 9A Community Development and Planning Department L�ity of Zikah 300 Seminary Avenue Ukiah, CA 95482 planninq c(�.cityofukiah.com (707)463-6203 2 3 DATE: November 21, 2013 4 5 TO: Planning Commission 6 7 FROM: Kim Jordan, Senior Planner 8 9 SUBJECT: Consideration of the Costco Wholesale Project EIR and possible 10 recommendation to the City Council on EIR certification 11 Eastside, south end of Airport Park Boulevard 12 APNs 180-110-08, 09, 10 and 180-080-57, 58, 59, 62, 63, 64, 65, 66, and 67 13 File Nos.: 11-01-REZ-SDP-CC-PC and 11-16-EIR-CC 14 15 RECOMMENDATION 16 17 Staffs recommends the Planning Commission conduct a public hearing and make a 18 recommendation to the City Council to certify the Costco Wholesale Project EIR based on the 19 findings included in attachment 1. 20 21 PROJECT DESCRIPTION 22 23 Project Description 24 25 An application has been received from David Babcock and Associates on behalf of Costco 26 requesting the following: 27 28 1. City Council approval of a rezoning to amend the Airport Industrial Park Planned 29 Development Land Use Map to change the land use designation of the Costco Project 30 site from Industrial/Auto Commercial and Light Manufacturing/Mixed Use to Retail 31 Commercial; 32 33 2. Planning Commission approval of a Site Development Permit; and 34 35 3. Consolidation and reconfiguration of the parcels included in the Project. 36 37 to allow the construction of a 148,000 square foot Costco Wholesale store, 20 pump fuel station, 38 and 607 parking spaces, landscaping, and associated site improvements on a 15.33 acre site 39 located on the eastside of Airport Park Boulevard between Ken Fowler Auto Center and the 40 southern terminus of Airport Park Boulevard (APNs 180-110-08, 09, 10 and 180-080-57, 58, 59, 41 62, 63, 64, 65, 66, 67)within the Airport Industrial Park Planned Development (AIP PD). Costco Wholesale Warehouse Environmental Impact Report(EIR) Eastside,south end of Airport Park Boulevard APNs 180-110-08,09,10 and 180-080-57,58,59,62,63,64,65,66,and 67 File Nos.:11-01-REZ-SDP-CC-PC/11-16-EIR-CC 1 1 2 The proposed Costco warehouse would include the following: 3 4 ■ rezoning of all or portions of the parcels that comprise the Costco Project site; 5 ■ bakery, pharmacy, optical center, hearing aid, testing center, food court, photo 6 center, tire center (sales and installation); 7 ■ sales of over 4,000 retail products; and 8 ■ 16 pump fueling station with the ability to expand to 20 pumps. 9 10 For additional information on the Project Description see DEIR pages 2-1 to 2-14 and FEIR 11 pages 4-1 to 4-5. 12 13 SETTING 14 15 The Costco Project would be located on the east side of Airport Park Boulevard south of Ken 16 Fowler Auto Center and north of the existing drainage area. The parcels included in the Project 17 total approximately 18.57 acres and the Costco Project development is proposed to be 18 developed on 15.33 acres north of the drainage area. The Project site is relatively flat and 19 undeveloped. The Project site is covered in grasses, and there are several trees located to the 20 east of the site along the Caltrans right-of-way. 21 22 The Project has street frontage on Airport Park Boulevard which would provide the primary 23 access to the site via new driveway curbcuts. An existing access easement ending in a cul-de- 24 sac is located on the north side of the site. This access easement provides access to Ken 25 Fowler Auto Center and will provide access to the loading areas for the Costco store and 26 secondary access to the parking lot. 27 28 The Project site is surrounded by parcels with the following general plan and zoning 29 designations and land uses. 30 General Plan Zonin Land Uses PI'OjeCt Master Plan Area Planned Development(PD)- N/A-Vacant (MPA) Airport Industrial Park Industrial/Auto Commercial Light Manufacturing/Mixed Use NOI'th Master Plan Area Planned Development(PD)- Ken Fowler Auto Center (MPA) Airport Industrial Park Friedman's Home Improvement Industrial/Auto Commercial Staples, Food Maxx Retail Commercial Ashley Furniture Walmart SOUth Master Plan Area Planned Development(PD)- Vacant land (MPA) Airport Industrial Park Mendocino Brewing Company Light Manufacturing/Mixed Use Vineyards Industrial County County County East County County U.S. 101 Costco Wholesale Warehouse Environmental Impact Report(EIR) Eastside,south end of Airport Park Boulevard APNs 180-110-08,09,10 and 180-080-57,58,59,62,63,64,65,66,and 67 File Nos.:11-01-REZ-SDP-CC-PC/11-16-EIR-CC 2 General Plan Zonin Land Uses County—Pear orchards (east side of U.S. 101) West Master Plan Area Planned Development(PD)- Vacant parcels with concrete (MPA) Airport Industrial Park debris Light Manufacturing/Mixed Use Les Schwab,small retail stores and restaurants Public(P) Ukiah Municipal Airport PD Ukiah Municipal Airport 1 2 3 EIR AND PROJECT REVIEW PROCESS 4 5 The EIR analyzes the potential environmental impacts resulting from the construction and 6 operation of the Project, including the potential environmental effects associated with the 7 rezoning/PD amendment, site development permit, and parcel reconfiguration and 8 consolidation. 9 10 Rezoning/Planned Development Amendment. The rezoning/PD Amendment would amend 11 the Airport Industrial Park Planned Development to change land use of the Costco Project site 12 from Industrial/Auto Commercial and Light Manufacturing/Mixed Use to Retail Commercial. 13 14 Amending the AIP-PD to rezone the Project site from Industrial/Auto Commercial and Light 15 Manufacturing/Mixed Use to Retail Commercial requires City Council approval. Prior to City 16 Council consideration of the rezoning, Planning Commission is required to hold at least one 17 public hearing and make a recommendation to City Council. Prior to holding a public hearing on 18 the rezoning/PD Amendment, the City Council is required to certify the EIR for the Project. 19 20 All of the parcels within the AIP PD have a Master Plan Area (MPA) general plan land use 21 designation. The Retail Commercial, Light Industrial/Mixed Use, and Industrial/Auto Commercial 22 are consistent with the MPA general plan designation; therefore, a general plan amendment is 23 not required. 24 25 Site Development Permit. In the Retail Commercial designation, retail commercial stores are 26 allowed with approval of a Site Development Permit. Due to the size of the Project, Planning 27 Commission approval of the site development permit is required. Prior to Planning Commission 28 consideration of the Site Development Permit, City Council certification of the EIR is required. 29 Planning Commission will rely on the EIR certified by the City Council for the environmental 3o review required for the Site Development Permit. Therefore, staff requests the Planning 31 Commission review the EIR to ensure the EIR includes the necessary analysis of potential 32 environmental impacts associated with the Site Development Permit and Rezoning. 33 34 Environmental Review. In order to construct the proposed Project, City approval of a 35 rezoning/PD amendment and site development permit are required. The EIR analyzed the 36 potential impacts related to construction and operation of the Project; therefore, the analysis of 37 the potential impacts includes the City approvals required for construction and operation of the Costco Wholesale Warehouse Environmental Impact Report(EIR) Eastside,south end of Airport Park Boulevard APNs 180-110-08,09,10 and 180-080-57,58,59,62,63,64,65,66,and 67 File Nos.:11-01-REZ-SDP-CC-PC/11-16-EIR-CC 3 1 Project. Since the Project requires City Council approval of a rezoning/PD Amendment, City 2 Council will make a decision on the certification of the EIR. 3 Environmental Impact Report Preparation. An EIR (State Clearinghouse #2011112025) has 4 been prepared for the Project pursuant to the requirements of the California Environmental 5 Quality Act (CEQA). 6 7 ■ Notice of Preparation: On November 4, 2011 a Notice of Preparation (NOP)was sent 8 to responsible agencies, organizations, and interested parties to provide notice that the 9 City of Ukiah as the Lead Agency would be preparing an environmental impact report 10 (EIR)for the proposed Costco project. The comment period to identify and provide 11 input on the potentially significant environmental effects to be addressed in the EIR was 12 from November 4 to December 6, 2011, and a scoping meeting was held on November 13 21, 2011. 14 15 ■ Notice of Availability: A Notice of Availability (NOA) on the draft environmental impact 16 report (DEIR)was mailed to interested parties and neighboring property owners on 17 January 24, 2013. The comment period on the DEIR was January 30 to March 15, 2013, 18 and Planning Commission held a public hearing and received public comment on the 19 DEIR on February 27, 2013. 20 21 ■ Final EIR: The Final EIR has been prepared and responds to the comments received on 22 the DEIR. The Final EIR was made available on November 1, 2013 (see also Public 23 Notice below). 24 25 BACKGROUND 26 27 Selection of EIR Consultant & EIR Preparation 28 29 After it was determined that preparation of an EIR would be required in order to analyze the 30 potential environmental impacts of the Costco Project, Environmental Science Associates was 31 selected to prepare the EIR. ESA also prepared the EIR for the Walmart Expansion project. 32 Based on their experience with the Walmart Expansion project, similar projects, knowledge of 33 the area and Airport Industrial Park, knowledge of CEQA, and expertise of their sub-consultants, 34 the Costco EIR was sole-sourced to ESA by City Council on October 19, 2013. 35 36 The Project applicant is required to pay for the preparation of the EIR. This includes the 37 consultant's costs associated with the preparation of the EIR and City staff time associated with 38 the administration of the EIR. The cost of the EIR consultant and City staff time is paid to the 39 City prior to the start of EIR preparation. The City receives invoices from the EIR consultant and 40 pays the consultant directly. The applicanYs contact with the EIR consultant is severely limited 41 by the City, and City staff is included in any contact between the EIR consultant and the 42 applicant. It should be noted that CEQA does not require this arrangement. As allowed by 43 CEQA, the applicant may prepare the EIR and submit the EIR along with the project for 44 consideration by the local agency. To ensure that the EIR, whether prepared by the local 45 agency, applicant, or consultant, represents the judgment of the local agency, CEQA requires a 46 finding to be made as part of EIR certification that the EIR represents the independent judgment 47 and analysis of the Lead Agency (see attachment 1). Costco Wholesale Warehouse Environmental Impact Report(EIR) Eastside,south end of Airport Park Boulevard APNs 180-110-08,09,10 and 180-080-57,58,59,62,63,64,65,66,and 67 File Nos.:11-01-REZ-SDP-CC-PC/11-16-EIR-CC 4 1 2 Comments on the Draft EIR 3 4 Many of the comments received on the Draft EIR were not related to the adequacy of the DEIR. 5 Some of the comments received expressed support of or opposition to the Project, objection to 6 the use of City funds to pay for infrastructure improvements, and concerns about the Project's 7 effect on local businesses. Comments that do not address the adequacy of the EIR are not a 8 consideration when deciding whether to certify the EIR. 9 10 As stated in the Final EIR, the City (City Council and Planning Commission) will consider all 11 comments when making a decision on the Project. The comments that are not related to the 12 adequacy of the EIR would be considered as part of City Council's review of the Rezoning and 13 Planning Commission's review of the Site Development Permit. 14 15 Some commenters disagreed with the analysis and conclusions reached in the DEIR. CEQA 16 Guidelines section 15204(c) states: 17 18 Reviewers should explain the basis of their comments, and should submit data or 19 references offering facts, reasonable assumptions based on facts, or expert opinion 20 supported by facts in support of the comments. Pursuant to Section 15064, an effect 21 shall not be considered significant in the absence of substantial evidence. 22 23 It is not unreasonable that there may be a disagreement with some of the conclusions reached 24 in the EIR; however, disagreement alone does not indicate that the EIR is inadequate or the 25 information, analysis, or conclusions are faulty. CEQA Guidelines section 15151 states: 26 27 An EIR should be prepared with a sufficient degree of analysis to provide 28 decisionmakers with information which enables them to make a decision which 29 intelligently takes account of environmental consequences. An evaluation of the 30 environmental effects need not be exhaustive, but the sufficiency of the EIR is to be 31 reviewed in the light of what is reasonably feasible. Disagreement among experts does 32 not make an EIR inadequate, but the EIR should summarize the main points of 33 disagreement among the experts. The courts have looked not for perfection but for 34 adequacy, completeness, and a good faith effort at disclosure. 35 36 STAFF ANALYSIS 37 38 Environmental Review 39 40 Public Notice of Environmenfal Review 41 42 The following notices were provided as part of the preparation of the Costco Wholesale Project 43 EIR. 44 45 ■ Notice of Preparation. Pursuant to CEQA Guidelines Section 15082, a Notice of 46 Preparation (NOP) advising that an environmental impact report (EIR)was to be 47 prepared for the Project was sent to the State Clearinghouse for distribution to Costco Wholesale Warehouse Environmental Impact Report(EIR) Eastside,south end of Airport Park Boulevard APNs 180-110-08,09,10 and 180-080-57,58,59,62,63,64,65,66,and 67 File Nos.:11-01-REZ-SDP-CC-PC/11-16-EIR-CC 5 1 responsible and/or trustee agencies on November 4, 2011. The NOP was sent to 2 property owners within 300 feet of the parcel, property owners within the AIP, and 3 persons on the interested parties list. The notice was also published in the Ukiah Daily 4 Journal and posted on the project site. A scoping meeting was held on November 21, 5 2013 for the purpose of identifying and receiving input on the potentially significant 6 environmental effects to be discussed in the EIR. 7 8 ■ Notice of Availability (NOA) of the Draft Environmental Impact Report (DEIR). As 9 required, the DEIR was routed through the State Clearinghouse to all responsible and 10 trustee agencies and filed with the Mendocino County Clerk. Notice of the availability of 11 the DEIR was also sent to property owners within 300 feet of the parcel, property owners 12 within the AIP, tenants on parcels contiguous to the Project, and persons on the 13 interested parties list. The notice was also published in the Ukiah Daily Journal, posted 14 on the Project site, and posted on the City of Ukiah website. 15 ■ The 45 day review period on the DEIR began on January 30, 2013 and ended on March 16 15, 2013 at 5:00 p.m. On February 27, 2013, Planning Commission held a public hearing 17 to receive public comment and provide Planning Commission comment on the adequacy 18 of the analysis presented in the DEIR. 19 20 ■ Notice of the Final Environmental Impact Report (FEIR). As required by Ukiah City 21 Code, a public notice of the Planning Commission public hearing for the Costco Final 22 EIR was provided as indicated below (see Public Notice and Comment below). On 23 November 21, 2013, Planning Commission will conduct a public hearing on the Costco 24 Wholesale Project EIR. 25 26 Environmentallmpacts 27 28 The EIR analyzed the potential for environmental impacts to result from the Project. The EIR 29 determined impacts to Agricultural Resources and Mineral Resources would not be significant, 3o and, therefore, they are not discussed in detail in the EIR (see DEIR page 4-5). Impacts to 31 Aesthetics, Air Quality, Urban Decay, Geology and Soils, Hazards and Hazardous Materials, 32 Hydrology and Water Quality, Land Use and Planning, Noise, Public Services and Utilities, 33 Transportation and Traffic, Global Climate Change, Biological Resources, Population and 34 Housing, and Cultural Resources were considered to have the potential to be significant and, 35 therefore, are discussed in detail in the EIR. 36 37 The level of the potential impacts to the environmental topics covered in detail in the EIR as less 38 than significant (LTS), potentially significant (PS), or significant and unavoidable (SU). The level 39 of impact for each environmental topic analyzed in detail in the EIR is provided below: 40 41 Less than Significant Impacts. The EIR analysis concluded impacts to the following 42 would be less than significant; and, therefore, no mitigation measures are required: 43 • Urban Decay • Public Services and Utilities ■ Land Use and Planning ■ Population and Housing ■ Noise 44 Costco Wholesale Warehouse Environmental Impact Report(EIR) Eastside,south end of Airport Park Boulevard APNs 180-110-08,09,10 and 180-080-57,58,59,62,63,64,65,66,and 67 File Nos.:11-01-REZ-SDP-CC-PC/11-16-EIR-CC 6 1 Potentially Significant Impacts. The EIR analysis identified potentially significant 2 impacts to the following and identified mitigation measures that would reduce the 3 impacts to less than significant: 4 ■ Aesthetics (light and glare) ■ Biological Resources ■ Geology and Soils ■ Cultural Resources ■ Hazards and Hazardous Materials ■ Transportation and Traffic (pedestrian, ■ Hydrology and Water Quality bicycle, and public transit) 5 6 Significant and Unavoidable Impacts. The EIR analysis identified significant and 7 unavoidable impacts to the following: 8 9 • Air Quality(operational emissions, and cumulative operational emissions) 10 ■ Transportation and Traffic (level of service and queuing) 11 ■ Global Climate Change 12 13 Mitigation Measures 14 15 Most of the impacts identified as potentially significant can be reduced to a less than significant 16 level with the incorporation of the specific mitigation measures identified in the EIR (see FEIR, 17 Summary, pages ES-3 to ES-15 and Mitigation Monitoring and Reporting Program, pages 5-3 to 18 5-10). The mitigation measures identified would be incorporated into and carried out through a 19 Mitigation Monitoring and Reporting Program (MMRP) and Project conditions of approval. 20 Mitigation Measures are identified for Aesthetics (light and glare), Geology and Soil, Hazards 21 and Hazardous Materials, Hydrology and Water Quality, Biological Resources, Transportation 22 and Traffic (pedestrian, bicycle, and public transit), and Cultural Resources. 23 24 Significant and Unavoidable Impacts 25 26 The EIR identified significant and unavoidable impacts to Air Quality, Transportation and Traffic, 27 and Global Climate Change. Each of the significant and unavoidable impacts are discussed 28 below. 29 30 Air Quality. The EIR concludes the Air Quality impacts identified in the table below would 31 not be reduced to less than significant with the inclusion of mitigation measures identified in 32 the EIR; and, therefore, these impacts are considered significant and unavoidable (SU). 33 34 Im act Discussion Impact 3.2.2: Operation of the As stated in the DEIR,the Project's construction related emissions Project would generate significant would be less than significant(DEIR, pages 3.2-12 and 3.2-13). emissions of criteria pollutants (NOX, PM10,and PM 2.5)that Operational Emissions. Pollutant concentrations for NOX, PM10,and could contribute to existing PM2.5 would exceed the threshold of significance established by the nonattainment conditions and Mendocino County Air Quality Management District. As stated in the degrade air quality. DEIR, most of the Project related emissions are associated with motor vehicles trips to and from the Project site (see DEIR pages 3.2-13 and Costco Wholesale Warehouse Environmental Impact Report(EIR) Eastside,south end of Airport Park Boulevard APNs 180-110-08,09,10 and 180-080-57,58,59,62,63,64,65,66,and 67 File Nos.:11-01-REZ-SDP-CC-PC/11-16-EIR-CC 7 Im act Discussion Impact 3.2.5: Construction and 3.2-14). Mitigation measures have been applied to the Project to operation of the Project would reduce the amount of emissions generated by the Project(see FEIR, pp. result in cumulatively considerable ES-3 to ES-5 and FEIR, pp.5-3 to 5-5). These mitigation measures increases of criteria pollutant would not reduce the impacts to a less than significant;therefore,the (NOX, PM10,and PM2.5) impact is SU. emissions. Cumulative Emissions. Since the Project's operational emissions exceed the threshold established by MCAQMD, impact 3.2.5 is significant and unavoidable. According to the MCAQMD, no single Project is sufficient in size to result in nonattainment of ambient air quality standards. However, since air quality is measured basin-wide,a project's individual emissions contribute to the existing cumulative air quality. When an individual project's emissions exceed the established significance threshold,the impact is cumulatively considerable to the region's air quality conditions. The same mitigation measures identified to reduce operational emissions have also been applied to cumulative emissions(see FEIR, pp. ES-3 to ES-5 and FEIR, pp.5-3 to 5- 5).These mitigation measures would not reduce the impacts to a less than significant;therefore,the impact is SU. Discussion.The Project relies on vehicle trips for transport of bulk items. In order to reduce emissions related to operation of the Project to a less than significant level,vehicle trips would have to be reduced to 2%of the number of trips estimated for the Project (see FEIR, pages 3-75 and 3-76, Response to Comment 18). Reducing the number of vehicle trips allowed for this Project to this level would likely make the Project economically infeasible for the Project proponent. Based on membership information provided by Costco, in 2012 Costco had 18,228 members with Ukiah addresses. These members made 201,803 visits to the Santa Rosa and Rohnert Park Costco stores in 2012. In order to be conservative when estimating impacts,the air quality analysis did not deduct potentially redirected trips from the air quality analysis emissions analysis. Construction of the Ukiah Costco would allow many of these trips to be redirected from the Santa Rosa and Rohnert Pak Costco stores to the Ukiah Costco store which could reduce regional emissions resulting from mobile sources. 1 2 3 Transportation and Traffic. The EIR concludes that the Transportation and Traffic impacts 4 identified in the table below would not be reduced to less than significant with the inclusion 5 of mitigation measures identified in the EIR; and, therefore, these impacts are considered 6 significant and unavoidable (SU). 7 Im act Discussion Costco Wholesale Warehouse Environmental Impact Report(EIR) Eastside,south end of Airport Park Boulevard APNs 180-110-08,09,10 and 180-080-57,58,59,62,63,64,65,66,and 67 File Nos.:11-01-REZ-SDP-CC-PC/11-16-EIR-CC 8 Existin Plus Pro�ect Im acts Impact 3.10.1: Implementation of Level of Service: Under Existing Plus Project Conditions,the the Project would increase traffic intersection of Talmage Road/Airport Park Boulevard would operate at volumes on area roadways. level of service(LOS) E(see DEIR, page 3.10-24). The acceptable LOS established by the City's General Plan is LOS D. Since the Existing Plus Project LOS would exceed LOS D,this impact is considered potentially significant. Queuing:The EIR traffic study indicates that the existing queuing condition (without the Project)for the right hand turn at Talmage Road/U.S. 101 southbound exceeds the available vehicle storage (see DEIR,Appendix E, page 11,Table 4). Under Existing Plus Project Conditions,Queuing would exceed available storage on: 1)westbound Talmage Road/Airport Park Boulevard for the left hand turn;and 2) Talmage Road/US 101 Southbound Ramp right hand turn (see DEIR, page 3.10-25). Mitigation: Mitigation Measure(MM)3.10.1 identifies improvements to the Talmage Road/US 101 interchange that would reduce LOS and queuing impacts to LTS(see DEIR, pages 3.10-26 and 3.10-27). As of the preparation of the Costco EIR,funding for construction of these improvements has not been secured by the City of Ukiah. For this reason,the impact has been identified as SU. City of Ukiah Interchange Project. The improvements identified in MM 3.10.1 are part of the City of Ukiah Talmage Road Interchange Project being undertaken and designed as a City of Ukiah Project.The purpose of this project is to improve the operation at the intersection of Airport Park Boulevard/Talmage Road and Talmage Road/U.S. 1015outhbound ramps to better serve the Airport Industrial Park and the surrounding area.Airport Industrial Park is a regional serving retail and commercial center that provides goods and services to City residents as well as the greater region. These improvements are currently being designed and the City has been meeting with Caltrans while designing the interchange improvements since the design of the improvements requires Caltrans approval. Caltrans has analyzed the proposed mitigation measure included in the DEIR and consulted with W-Trans(preparer of the Costco Project Traffic Study)and GHD(preparer of the traffic study and design on the interchange improvements). Caltrans has concluded that the mitigation measures in the DEIR adequately mitigate projected traffic impacts to State facilities(FEIR,Appendix A,Caltrans letter dated April 15, 2013). For additional information on Traffic, including the status of funding, see FEIR Master Response#4(FEIR,pages 3-13 and 3-14). Near-Term Baseline Plus Pro'ect Im acts Costco Wholesale Warehouse Environmental Impact Report(EIR) Eastside,south end of Airport Park Boulevard APNs 180-110-08,09,10 and 180-080-57,58,59,62,63,64,65,66,and 67 File Nos.:11-01-REZ-SDP-CC-PC/11-16-EIR-CC 9 Impact 3.10.3: Implementation of Level of Service: Under Near-Term Plus Project Conditions,the the Project would result increase acceptable intersection LOS would be exceeded at two intersections: 1) traffic volumes on area roadways Talmage Road/Airport Park Boulevard would operate at LOS E;and 2) under Near-Term conditions. Talmage Road/U.S 101 would operate at LOS F(see DEIR, page 3.10- 31). The acceptable LOS established by the City's General Plan is LOS D. Since the Existing Plus Project LOS would exceed LOS D,this impact is considered potentially significant. Queuing:The EIR traffic study indicates that under Near-Term conditions(without the Project)the maximum queue exceeds the available storage for: 1)southbound Talmage Road/U.S. 101 right hand turn; and 2)westbound Talmage Road/Airport Park Boulevard left hand turn (see DEIR,Appendix E, page 23,table 7). The EIR indicates that under the Near-Term Plus Project conditions the maximum queue also would exceed the available storage for: 1) southbound Talmage Road/U.S. 101 right hand turn;and 2)westbound Talmage Road/Airport Park Boulevard left hand turn (see DEIR, pages 3.10.31 and 3.10.32,table 3.10-13). Mitigation: Mitigation Measure(MM)3.10.3 identifies improvements to the Talmage Road/U.S. 101 interchange that would reduce LOS and queuing impacts to LTS(see DEIR, pages 3.10-26 and 3.10-27). As of the preparation of the Costco EIR,funding for construction of these improvements has not been secured by the City of Ukiah. For this reason,the impact has been identified as SU. City of Ukiah Interchange Project. See discussion above for Impact 10.1.1. For additional information on Traffic, including the status of funding, see FEIR Master Response#4(FEIR,pages 3-13 and 3-14J. Future (2030) Plus Pro'ect Level of Service Impacts Impact 3.10.4: Implementation of Level of Service: Under Future(2030) Plus Project Conditions,the the Project would increase traffic acceptable intersection LOS would be exceeded at three intersections: volumes on area roadways under 1)Talmage Road/Airport Park Boulevard would operate at LOS F; 2) Future Plus Project(2030) Talmage Road/U.S 101 would operate at LOS E;and 3)South State conditions. Street/Hastings Avenue would operate at LOS E.The acceptable LOS established by the City's General Plan is LOS D. Since the Future(2030) Plus Project LOS would exceed LOS D,this impact is considered potentially significant. Planned City improvements to the intersection of South State Street/Hastings Road include the installation of a left turn lane on the westbound approach of this intersection. Mitigation Measure 3.10.4: In addition to implementing the traffic improvements for the Talmage Road/U.S. 101 interchange identified in Costco Wholesale Warehouse Environmental Impact Report(EIR) Eastside,south end of Airport Park Boulevard APNs 180-110-08,09,10 and 180-080-57,58,59,62,63,64,65,66,and 67 File Nos.:11-01-REZ-SDP-CC-PC/11-16-EIR-CC 10 MM 10.1.1, mitigation is also included for the South State Street/Hastings Avenue. In addition to the improvements to the South State Street/Hastings Road intersection planned by the City(see above),a left hand turn lane would need to be installed on the eastbound approach of this intersection. These improvements would reduce the LOS impacts to LTS. As of the preparation of the Costco EIR,funding for construction of these improvements has not been secured by the City of Ukiah. For this reason,the impact has been identified as SU. City of Ukiah Interchange Project. See discussion above for Impact 10.1.1. For additional information on Traffic, including the status of funding, see FEIR Master Response#4(FEIR,pages 3-13 and 3-14). Future 2030 Plus Pro'ect ueuin Im acts Impact 3.10.5: Under Future Plus Queuing:The EIR traffic study indicates that under Future(2030) Project conditions,traffic conditions(without the Project)the maximum queue exceeds the associated with the Project would available storage for: 1)southbound Talmage Road/U.S. 101 right hand contribute to inadequate queuing turn; and 2)westbound Talmage Road/Airport Park Boulevard left hand storage at Talmage Road/Airport turn (see DEIR,Appendix E, page 28,table 9). Park Boulevard and Talmage Road/U.S. 101 Southbound Off- The EIR indicates that under Future(2030) Plus Project conditions the Ramp. maximum queue also would exceed the available storage for: 1) southbound Talmage Road/U.S. 101 right hand turn;and 2)westbound Talmage Road/Airport Park Boulevard left hand turn (see DEIR, pages 3.10.36 to 3.10.38,table 3.10-16). Mitigation: Mitigation Measure(MM)3.10.5 identifies improvements to the Talmage Road/U.S. 101 interchange identified in MM 10.1.1 that would reduce queuing impacts to LTS(see DEIR, pages 3.10-37 and 3.10-38). As of the preparation of the Costco EIR,funding for construction of these improvements has not been secured by the City of Ukiah. For this reason,the impact has been identified as SU. City of Ukiah Interchange Project. See discussion above for Impact 10.1.1. For additional information on Traffic, including the status of funding, see FEIR Master Response#4(FEIR,pages 3-13 and 3-14J. 1 2 Global Climate Change. The EIR concludes that the Global Climate Change impact 3 identified in the table below would not be reduced to less than significant with the inclusion 4 of mitigation measures in the EIR; and, therefore, these impacts are considered significant 5 and unavoidable (SU). 6 : 7 Costco Wholesale Warehouse Environmental Impact Report(EIR) Eastside,south end of Airport Park Boulevard APNs 180-110-08,09,10 and 180-080-57,58,59,62,63,64,65,66,and 67 File Nos.:11-01-REZ-SDP-CC-PC/11-16-EIR-CC 11 Im act Discussion Impact 3.11.1:The Project could There are no local or regional plans that apply to the Project. Since the generate GHG emissions that may Project would result in operational emissions that exceed the threshold have a significant impact on the adopted by the MCAQMD,the EIR concludes that the impact would be environment or conflict with an significant and unavoidable(DEIR, pages 3.11-16 to 3.11-18). The applicable plan, policy,or regulation operational emissions associated with the Project include area sources, adopted to reduce GHG emissions. energy sources, mobile sources,waste sources,and water sources. Due to the vehicle trips associated with the Project,the emissions resulting from mobile sources exceed the threshold of 1,000 metric tons of emissions per year established by MCAQMD(MCAQMD adopted the Bay Area Air Quality Management District's threshold). The mitigation measures for the Air Quality impacts have also been applied to the global climate change impacts(see FEIR, p. ES-12). As noted above in the Air Quality discussion,some of the trips associated with the Project would be redirected trips. Redirected trips are trips made by existing Costco members with Ukiah addresses that may travel to the Ukiah Costco rather than continuing to travel to the Santa Rosa or Rohnert Park Costco stores. In order to provide a conservative estimate of potential impacts,the GHG emissions analysis did not deduct these potential redirected trips from the modeling. Since most of the emissions contributing to the SU impact to GHG emissions are the result of mobile sources, reducing this impact to LTS would require a substantial reduction in vehicle trips. As noted above in the Air Quality discussion,vehicle trips would have to be reduced to 2%of the vehicle trips estimated for the Project(see FEIR, pages 3-75 and 3-76, Response to Comment 18). Reducing the number of vehicle trips allowed for this Project to this level would likely make the Project economically infeasible for the Project proponent. 1 2 3 Certification of the EIR 4 5 In order to certify the EIR, the City (City Council) is required to make the following specific 6 findings pursuant to CEQA Guidelines section 15090(a): 7 8 1. The final EIR has been completed in compliance with CEQA; 9 10 2. The Final EIR was presented to the decisionmaking body of the lead agency and that 11 the decisionmaking body reviewed and considered the information contained in the final 12 EIR prior to approving the project; and 13 14 3. The final EIR reflects the lead agency's independent judgment and analysis. 15 16 City Council action to certify the EIR is an action separate from and independent of City Council 17 action on the rezoning and Planning Commission action on the site development permit. The Costco Wholesale Warehouse Environmental Impact Report(EIR) Eastside,south end of Airport Park Boulevard APNs 180-110-08,09,10 and 180-080-57,58,59,62,63,64,65,66,and 67 File Nos.:11-01-REZ-SDP-CC-PC/11-16-EIR-CC 12 1 City Council may certify the EIR and approve, conditionally approve, or deny the rezoning. 2 Should the City Council certify the EIR and approve the rezoning, Planning Commission would 3 hold a public hearing to consider the site development permit. Planning Commission would rely 4 on the EIR certified by the City Council as the environmental analysis for the site development 5 permit. Planning Commission may approve, conditionally approve, or deny the site 6 development permit. Staff has included a draft City Council resolution to certify the EIR (see 7 attachment 1). 8 9 CEQA Guidelines section 15091 requires public agencies to make one or more written findings 10 supported by substantial evidence in the record for each of the significant environmental 11 impacts identified in the EIR prior to project approval and to provide an explanation of the 12 rationale for each finding (see attachment 1). 13 14 Statement of Overriding Considerations 15 16 A project with significant and unavoidable impacts (as identified above) may be approved if the 17 economic, legal, social, technological or other benefits of the proposed project outweigh the 18 significant and unavoidable environmental effects of the project; in which case these 19 environmental effects may be considered "acceptable." CEQA Guidelines section 15093 20 requires decision makers to balance the economic, social, technological, or other benefits of the 21 proposed project against its unavoidable environmental impacts when deciding whether or not 22 to approve a project with significant and unavoidable impacts. 23 24 In order to approve a project that would result in significant and unavoidable environmental 25 effects identified in the EIR that cannot be reduced to a less than significant level, the Lead 26 Agency must state in writing the specific reasons to support the project approval based on a 27 balancing of project benefits against impacts remaining significant as identified in the Final EIR 28 and/or other information in the record. This is formally known as a "Statement of Overriding 29 Considerations" and is made pursuant to CEQA Guidelines, Section 15093. The findings 30 required for a statement of overriding considerations are made in addition to the findings 31 required by CEQA Guidelines section 15091. 32 33 Before approving a project with significant and unavoidable environmental impacts, a Lead 34 Agency is required to first certify the EIR and adopt a statement of overriding considerations. If 35 findings of overriding consideration are not adopted by the Lead Agency in those instances 36 where unavoidable project-related environmental effects identified in the EIR would remain 37 significant, the Lead Agency cannot approve the proposed project. 38 39 PUBLIC NOTICE AND COMMENT 40 41 Notice of this public hearing and the availability of the FEIR was provided in the following 42 manner: 43 44 ■ published in the Ukiah Daily Journal on November 3, 2013; 45 ■ posted on the subject parcel on October 31, 2013; 46 ■ mailed to all property owners within 300 feet of the subject parcel on October 31, 2013; Costco Wholesale Warehouse Environmental Impact Report(EIR) Eastside,south end of Airport Park Boulevard APNs 180-110-08,09,10 and 180-080-57,58,59,62,63,64,65,66,and 67 File Nos.:11-01-REZ-SDP-CC-PC/11-16-EIR-CC 13 1 ■ mailed to all property owners within Airport Industrial Park Planned Development (not 2 within 300 feet of the Project site) on November 9; 3 ■ mailed to all tenants on parcels contiguous to the subject parcel on October 31, 2013; 4 ■ mailed and/or emailed to all persons on the Costco Project interested parties list on 5 October 31, 2013; and 6 ■ posted on the City's website on October 31, 2013. 7 8 On November 1, the 2013, the FEIR was made available on the City of Ukiah website under the 9 Featured Topics section, see Costco Project. On November 1, 2013, copies of the FEIR were 10 available for review at the following locations: 11 City of Ukiah Main Branch Library Planning & Community Development Dept. 105 North Main Street 300 Seminary Avenue Ukiah, CA 95482 Ukiah, CA 95482 12 The comments received prior to and during the comment period on the DEIR are included in 13 chapter 2 of the FEIR (see attachment 2). 14 15 Comments received after the close of the comment period on the DEIR and during the 16 preparation of the FEIR are included as attachment 3A. Comments received in response to the 17 notice for this public hearing are included as attachment 3B. No new impacts were identified or 18 issues raised in these comments. 19 20 CONCLUSION 21 22 The purpose of this public hearing is to: 23 24 1. take public and Planning Commission comment on the Costco Wholesale Project EIR; 25 and 26 27 2. make a recommendation to the City Council on certification of the EIR (see attachment 2s 1). 29 30 Should the Planning Commission be in a position to recommend the City Council certify the 31 Costco Wholesale Project EIR, staff requests Planning Commission begin the public hearing for 32 the rezoning of the Project site which is agendized as a separate item (item 9B) for this meeting. 33 34 35 36 37 38 39 40 41 42 Costco Wholesale Warehouse Environmental Impact Report(EIR) Eastside,south end of Airport Park Boulevard APNs 180-110-08,09,10 and 180-080-57,58,59,62,63,64,65,66,and 67 File Nos.:11-01-REZ-SDP-CC-PC/11-16-EIR-CC 14 1 ATTACHMENTS 2 3 1. Draft Resolution to Certify the Costco Wholesale Project EIR 4 2. Final Environmental Impact Report available on the City of Ukiah website at 5 https://cityofukiah.app.box.com/s/zqOftxrd7xcsdbna68dv or contact Kim Jordan at 6 707.463.6207 at kiordan(a�cityofukiah.com (Provided to Planning Commission on 7 11/1/2013) 8 3A. Public Comment during FEIR Preparation 9 3B. Public Comment in Response to Public Notice 10 11 S:Planning/Planning Commission/Staff Reports/Costco FEIR 12 Costco Wholesale Warehouse Environmental Impact Report(EIR) Eastside,south end of Airport Park Boulevard APNs 180-110-08,09,10 and 180-080-57,58,59,62,63,64,65,66,and 67 File Nos.:11-01-REZ-SDP-CC-PC/11-16-EIR-CC 15 1 ATTACHMENT 1 2 3 RESOLUTION NO. 4 5 RESOLUTION OF THE CITY OF UKIAH MAKING FINDINGS 6 PURSUANT TO CALIFORNIA ENVIRONMENTAL QUALITY 7 ACT ("CEQA") GUIDELINES SECTION 15090 IN CONNECTION 8 WITH THE CERTIFICATION OF THE COSTCO WHOLESALE 9 PROJECT ENVIRONMENTAL IMPACT REPORT 10 11 12 13 WHEREAS: 14 15 1. The City of Ukiah ('�City'� as Lead Agency has conducted an environmental review for 16 the proposed Costco Wholesale Project that included the Environmental Impact Report 1� (EIR) scoping period, the Draft EIR, public review of the Draft EIR, and the Final EIR; Zs and 19 20 2. The Final EIR consists of the Draft EIR, as revised, plus the Final EIR. The Final EIR 21 includes all written comments received regarding the Draft EIR, responses to comments, 22 and the Mitigation Monitoring and Reporting Program (MMRP). 23 24 3. The implementation of the EIR scoping and review process is described in Section 1.2 of 25 the Final EIR (pp. 1-2 and 1-3). The following is a summary of the City's environmental 26 review for this project. 27 2s A. The City issued a Notice of Preparation (NOP) for a 30-day comment period between 29 November 4 and December 6, 2011. The NOP was distributed to governmental 3o agencies, organizations, and persons interested in the proposed project. The City 31 sent the NOP to agencies with statutory responsibilities in connection with the 32 proposed project with the request for their input on the scope and content of the 33 environmental information that should be addressed in the EIR. The City Planning 34 and Community Development Department held a Scoping Meeting on November 21, 35 2011 to take comments regarding the scope of the EIR in response to the NOP. The 36 environmental issues raised during the scoping process were considered in the Draft 37 EIR. 38 39 B. The Draft EIR was released on January 30, 2013. The Notice of Availability was 4o published in the Ukiah Daily Journal on January 27, 2013. The Notice of Completion 41 was delivered to the State Clearinghouse on January 30, 2013 (State Clearinghouse 42 # 2011112025). The review period closed on March 15, 2013 at 5:00 p.m. The 43 Planning Commission of the City of Ukiah held a public hearing to receive comment 44 on the Draft EIR on February 27, 2013. Fifly-nine (59) written comment letters were 45 received during the review period, in addition to comments made at the Planning Costco Wholesale Project Environmental Impact Report(EIR) Eastside,south end of Airport Park Boulevard APNs 180-110-08,09,10 and 180-080-57,58,59,62,63,64,65,66,and 67 File Nos.:11-01-REZ-SDP-CC-PC/11-16-EIR-CC 1 1 Commission hearing on February 27th. These comments are included in their entirety 2 in Chapter 2 of the Final EIR. 3 4 C. The Final EIR was released on November 1, 2013, 21 days prior to the Planning 5 Commission public hearing regarding EIR certification and project consideration. 6 � D. On November 21, 2013, the Planning Commission conducted a public hearing on the 8 certification of the EIR and made a recommendation to the City Council. 9 Zo E. On December 4, 2013, the City Council conducted a public hearing on the 11 certification of the EIR. 12 13 4. The custodian of the Project record is the City of Ukiah Planning and Community 14 Development Department. The documents and other materials, which constitute the 15 record of proceedings for the City's certification of the EIR and potential approval of the 16 Project, including, but not limited to the items described in Public Resources Code 17 Section 21167.6(e), are located at the Planning and Community Development 1s Department, 300 Seminary Ave., Ukiah, CA 95482, and are available for review during 19 normal City business hours. 20 21 NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Ukiah finds as 22 follows: 23 24 1. Pursuant to CEQA Guidelines Section 15090 (Title 14 of the California Code of 25 Regulations, Section 15090) the City Council certifies that the Final EIR has been 26 completed in compliance with the California Environmental Quality Act (°CEQA'� and the 2� State CEQA Guidelines. The City Council makes the following findings: 2s 29 A. The Final EIR has been completed in compliance with CEQA. 30 31 B. The City retained ESA of San Francisco, California, to prepare the Draft and Final 32 EIR documents for the proposed Project. The EIR was prepared under the 33 supervision and direction of the City Planning and Community Development 34 Department staff and presented to the City Council and Planning Commission. 35 The EIR was presented to the Planning Commission on November 21, 2013 for 36 review and consideration of the information contained in the Final EIR. The EIR 3� was presented to the City Council on December 4, 2013 for review and 38 consideration of the information contained in the Final EIR. The City Council 39 has reviewed and considered the information contained in the Final EIR. 40 41 C. The Final EIR reflects the City's independent judgment exercised in accordance 42 with CEQA Section 21082.1 (c) by reviewing, analyzing and revising material 43 prepared by the consultant; circulating the Draft EIR as a City document and 44 certifying that the Final EIR reflects the independent judgment of the lead 45 agency. Costco Wholesale Project Environmental Impact Report(EIR) Eastside,south end of Airport Park Boulevard APNs 180-110-08,09,10 and 180-080-57,58,59,62,63,64,65,66,and 67 File Nos.:11-01-REZ-SDP-CC-PC/11-16-EIR-CC 2 1 2 2. The proposed Project has the potential to result in significant impacts on the 3 environment. Pursuant to the CEQA Guidelines, an EIR is the required environmental 4 documentation for the City's consideration of the Project. 5 6 7 8 9 Douglas Crane, Mayor Zo 11 12 13 ATTEST: 14 15 16 Kristine Lawler, City Clerk 17 Costco Wholesale Project Environmental Impact Report(EIR) Eastside,south end of Airport Park Boulevard APNs 180-110-08,09,10 and 180-080-57,58,59,62,63,64,65,66,and 67 File Nos.:11-01-REZ-SDP-CC-PC/11-16-EIR-CC 3 ATTACHMENT 3A Pu bl ic Com ment durin g FEI R Pre a ration p � ,' Kim Jordan From : Michael M <michaelzim52@hotmail . com> � Sent: Friday, October 11 , 2013 4: 34 PM To: Kim Jordan Subject: Lighting Ref. - Costco Follow Up Flag : Follow up Flag Status : Flagged Attention Kim Jordan : Kim . . . Herewith just a reminder note regarding our conversation about potential lighting considerations for the new Costco development due in at Airport Park next year. Living up above the valley floor on the west side means we are very exposed to night lighting that is not directed downwards, or is reflecting up towards the hills (or night sky) . A small light is astonishingly bright and : much more "visible " than one would assume for the distances involved . It has to be seen to be believed . I had a friend down on Gielow Lane near River Road shine his LED flashlight at me one night and it was BRIGHT ! That must be what. . .5 miles away or more from upper Oak Knoll Road where I liv.e ! ? Then I turned on my deck lights (four 60W floods) and he said it lit up my place on the mountain like a lighthouse. He was likewise stunned at how bright it was (as my lights face the valley floor basically - and a reason I do not use them as I ' m sure it would be intrusive to someone) . So it works two ways - up or down . Anyway, hopefully the Costco development is not going to offer such problems as it sounds like you in Planning, and they, are already aware of this and the " Dark Sky" initiative, etc. Thanks much . . . Michael Maltas 1575 Oak Knoll Road . Ukiah � Tel . 467-9137 • 1 ; Kim Jordan From : Angela Taylor <angelpawswedding@yahoo.com > � Sent: Friday, May 10, 2013 4:46 PM To: Kim Jordan Subject: Costco Plan Follow Up Flag : Follow up Flag Status: Flagged To Whom It May Concern: I have been a resident of iJkiah since 1985 and I am very supportive of the proposed Costco Warehouse opening on Airport Park Boulevard, or anywhere in or near Ukiah. I feel that Costco would be a positive addition to the Mendocino County area. Too many residents travel to Sonoma County to spend their shopping _ dollars, thus giving all the sales tax to a different county. Our emergency and other services that are paid for by sales t� income are greatly affected by this happening. Our local governments can be helped by having more shopping choices here. By being able to shop locally, less fuel is burned which is also a benifit for the environment. Costco is a good employer who pays a livable wage, with benefits arid their employees seem quite happy to work there. Ukiah needs more jobs like this ! My medical insurance is also benificial if my family uses their pharmancy, as my co-pay for generic perscriptions is zero. I would strongly urge the City of Ukiah to approve the addition of a local Costco ! Thank you, Angela Miller P . O. Box 57 Ukiah, CA 95482 707-463 -2663 i 1�1:1�I� ORC �II� AS � O � Y1�T�+ S I�I�C. P .O . Box 1028 LTkiah, CA 95482 Apri123 , 2013 Michael Whetzel , Planning Commission City of Ukiah c/o City Clerk's Office � 300 Seminary Avenue � _ Ukiah, CA 95482 Dear Mr. Whetzel, As Ulciah �roperty owners, we wonder if it`s really fair to existing businesses in Ukiall to use city taxpayer inoney to subsidize a large international corporation like Costco? We all expect competition but Ukiah businesses need a level playing field to compete. To subsidize Costco at taxpayers' expense and penalize existing businesses is not the American way. - -- -.--T-he-Gostco-traff-c-con-gestioiz pr-oblem-has-not-beeil-adequatel-y-adeli-esseci. -W-a1m- a�-t wil-1- --- -- _ _ ________ ._ __ expand, and the added additional businesses will create greater traffic problems . What's missing in the analysis is who will take the blame (or who's at fault) when the backup extends into the southbound lanes of US Highway 101 causing accidents : then the city taxpayers will pay again to try and find a solution. The only fair and reasonable approval is to require Costco (and others that will add to congestion) to fully fund traffic improvements that take into account Costco traffic, Walmai�t's increased traffic aiid future traffic generated by other businesses that will be drawn to the area . . Yours Truly . . R . L. Garrison ���� ���� A�R � :9 2013 y�� i�/��� �p�y� y� E'LJ'1�'1�r��7 J�PIo PEAI� ORCI3A ASSOCI�TES I,LC P.o . Box lo2s Ukiah, CA 95482 April 23 , 2013 Judy Pi-uden, Planning Commission City of Ukiah c/o City Clerk's Office 300 Seminary Avenue Ukiah, CA 95482 Dear Ms. Piuden, As Ulciah property owners, we wonder if it's really fair to existing businesses in Ukiah to use city taxpayer money to subsidize a large international coiporation like Costco ? We all expect competition but Ukiah businesses need a level playing field to compete. To subsidize Costco at taxpayers' expense and perialize existing businesses is not the American way. - - --- -- T-he-Costco-tr-affi.c coilgestio.n._pr_oblenl_has_not been_adequatel_y_ addi�essed.__W_ _alillaL�wi1L ___ ___ _ _ - ___ _ expand, and the added additional businesses will create greater traffic problems . What's missing in the analysis is who will take the blame (or who's at fault) when the backup extends into the southbound lanes of US Highway 101 causing accidents : then the city taxpayers will pay again to try and find a solution. The only fair and reasonable approval is to require Costco (and others that will add to congestion) to fully fund traffic iinprovements that take into account Costco traffic, Walmart's increased traffic and future traffic generated by other businesses that will be drawn to the area . Yours Truly � t��� EIVE � � AP� 2� 9 2013 R. L. Garrison CdN 0� UKU�t9 P�LJ�MViN6 D� PEAR OlZCIIII� ASSOCIATES LI�C P.O . Box 1028 Ukiali, CA 95482 Apri123 , 2013 Jason Brenner, Planning Cormnission � City of Ukiah c/o City Clerk's Office 300 Seminary Avenue Ukiah, CA 95482 Dear Mr. Bremier, As Ulciah property owners, we wonder if it's really fair to existing businesses in Ukiah to use city taxpayer money to subsidize a large international corporation like Costco? We all expect competition but Ukia11 businesses need a level playing field to compete. To subsidize Gostco at taxpayers' expense and penalize existing businesses is not the American way. — - - -- - - ----T-he-Gostco-tr-affic-coiigest.ion--pr-ob.lem-llas-no�been_adequatel_y_addi�essed.__W_ _almai-twill__ ___ __ _____ __ _ __ expand, and the added additional businesses will create greater traffic problems . What's missing in the analysis is who will take the blame (or who's at fault) when the backup extends into the southbound lanes of US Highway 101 causing accidents : then the city taxpayers will pay again to try and find a solution. The only fair and reasonable approval is to require Costco (and others that will add to congestion) to fully fund traffic improvements that talce into account Costco traffic, Walmart's increased traffic and future traffic generated by other businesses that will be drawn to the area . Yours Truly � � ° RECEIi/ED R. L. Garrison APR 2 9 2013 �trYOF U!(UIFi tlANNING DEPI: 1'EAR OIZCI3A A� SOCIATES LLC P .O . Box 1028 � LJkiah, CA 95482 Apri123 , 2013 Linda Sanders, Plamiing Commission City of Ukiah c/o City Clerk's Office 300 Seminary Avenue Ukiah, CA 95482 Dear Ms. Sanders, As Ukiah property owners, we wonder if it's really fair to existing businesses in Ukiah to use city taxpayer money to subsidize a large international coiporation like Costco? We all expect competition but Ukiah businesses need a level playing field to compete. To subsidize Costco at taxpayers' expense and penalize existing businesses is not the American way. -- --- —T-he Costeo-traff e-eoilgestioil-problem-llas--not been-adequatel-y-aeldi�essed. W-alnlaz-t-will-- -- expand, and the added additional businesses will create greater traffic problerns . What`s missing iu the analysis is who will take the blame (or who's at fault) when the backup extends into the southbound lanes of US Highway 101 causing accidents : then the city taxpayers will pay again to try and find a solution. The only fair and reasonable approval is to require Costco (and others that will add to congestion) to fully fund traffic irnprovements that take into account Costco traffic, Walmart's increased traffic aild future traffic generated by other businesses that will be drawn to the area . Yours Truly ° R�'CElVE� a R. L. Garrison �P� 29 2013 r�o� ur� e'uivrvnv� D�� � PEAR ORCI3A ASSOCIA'I'ES LLC P.o . BoX 1 o2s Ukiali, CA 95482 Apri123 , 2013 Kevin Doble, Planning Commission City of Ukiah ~ c/o City Clerk's Office 300 Seminary Avenue Ukiah, GA 95482 Dear Mr. Doble, . As Ulciah propei-ty owners, we wonder if it's really fair to existing businesses ii1 Ukiall to use city taxpayer money to subsidize a large international corporation like Costco? We all expect competition but Ukiah businesses need a level playing field to compete. To subsidize Costco at taxpayers' expense and penalize existing businesses is not the American way. _. The-Gostco-traffic congestioil-pr-oblem 11as not-been adequately addressed . Walmart will expand, and the added additional businesses will create greater traffic problems. What's inissing in the analysis is who will take the blame (or who's at fault) when the backup extends into the southbound lanes of US Highway 101 causing accidents : tllen the city taxpayers will pay again to try and find a solution. The only fair and reasonable approval is to require Costco (and others that will add to congestion) to fully fund traffic improvements that take into account Costco traffic, Walmart's increased traffic and future traffic generated by other businesses that will be drawn to the area . Yours Truly . • R. L. Garrison R��EIV�� AP� 29 2013 Cf1Y f)F tRA�AH �UNNINI� D�PT. i � Attention : KIM JORDAN I am another voice to be heard and I do not want another BIG BOX STORE come to Ukiah ! And , I do not want Costco to come here . I ' m with so many others who thinks , this is rediculous and added burden to the Airport Blvd complex ( mess ) . I was also against an expansion of Walmart . In fact I would have preferred that Walmart didn ' t - exist here at all ! We did nicely without it . It only brought in more people to our once sma.11 nice town . They wonder why the downtown is drying up , then they let these big box stores come in and take away from downtown business . What in the world is wrong with these super- visors and whoever else wants more big box stores? I VOTE NO ON CJOSTCO ! ! Sincerely, Barbara Beck R�CEI�� � MAR 1 � � 013 �nv� � ru��racc � �o I`ys�2,� � ,��, �, �, (�k� � ��� �, � � I Kim Jordan From : Gail Zettel <zettel@pacific. net> ✓ Sent: Tuesday, March 26, 2013 10 :42 AM To: Kim Jordan . Subject: Costco . Follow Up Flag: Follow up Flag Status : Flagged As a responsible tax paying citizen, I support the improvements necessary to bring in Costco and if by supporting that other box stores then so be it. Here are the reasons I support a Costco: 1 . The revenue it will acquire from taxes to help pay for our growing community 2. That it is a company with a reputable practice for supporting their workers with a decent wage and medical - coverage (unlike Walm�rt ! ) 3 . That the green savings it might reduce in our carbon print with no more trips to Santa Rosa 4. The employment opporiunities it will provide with our growing populatiori and no currently limited _ _ _ _ - - employment opportunities available � These are just some of the reasons I can think of, I'm sure their are lots more but when looked at with two columns for plus and minus. I see the benefits outweigh the negatives. I do realize the carbon emissions may not be reduced as people up north will make a journey to the store, but again, I'm hoping we can make vehicles more greener friendly and affordable in the near future. I don't however, support WALMART ! But again, they do provide products that are affordable for our working class population, I just hope someday they will pay their employees a decent wage and medical coverage. Thank you for providing the opportunity to express this through email. Respectfully, Gail Zettel R.�.c.�� 2:�, ���,c�' G�rno��¢,�r ' -�,�-tccl c ��� � 1 � 1 ) Kim Jordan From : David Nieskoski <davenieskoski@gmail .com > �/ Sent: Thursday, March 21 , 201311 :35 AM To: Kim Jordan Subject: costco Follow Up Flag : Follow up Flag Status: Flagged 3 -21 - 1 3 hello, just registering a quick opinion re: Airport Park. i'm not opposed tp costco per se, but it should be done right, and a sensible slow appoach - to the future development of that area is called for. i live in talmage, so i'm always driving near Airport Blvd. _ - -_ . _ _ _ _ _ _ _ _ first change needed is 'switching' 2lanes to turn left, instead of having 21anes go straight on talmage rd. shouldn't really cost too much. second, new freeway entrance is needed further south to take pressure off the north end. also, a 'light' at the 4-way intersection where the new steakhouse is located. and last, re-pave Airport Blvd. it's been awful for a long time. thanks and good luck, dave nieskoski � .I l�.ce� u �, �� c� �� c �,� � � � • ; � , ` _ . . e _ � , � `. � ., , � � � , .., , _ �. .. , '; _ ' , :; : l ° J _ .� �.�.= i� . c , ., - ` , .: �,� 1 � � ��' �`�Y iih I b � �y - i i i l � �� . tJ� T I�F� .t i1i � �14 j i .e 4la �s a i � � � `� . t i �� �c � f^ z � � � i 7�, � � �,i�� A ,� e � ._ ! i � � ; �\ L 1 f ��i $Y(� � � r � 1 � tt r - Y � � r s�� i y r t � •� l� +t 4 k'i ��`v � t "�� 11f? 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Kim Jordan From : Sally Palacio <sallypalacio@hotmail . com> � Sent: Saturday, March 16, 2013 6:29 AM To : Kim Jordan Subject: Airport Park This big boxed area is very bicycle unfriendly. Interesting that Hastings Road to Airport Blvd has nice bike lanes, and though Airport Blvd itself has plenty of road-room to have bike lanes, they've not been added . The parking lots around these stores are treacherous for bikers. Parking lots could have bike lanes alongside the main car entrances to the lots and paralleling pedestrian cross-walks. All planning should include accommodating bicycles as well as pedestrians. IZ2c Q �v�fi �� c f � � �v��� � � 3� � s - � ti� � � � ! '''� � � ;, ; % Kim Jordan From : TERESA <teriwells@pacific. net> ✓ Sent: Saturday, March 16, 2013 1 : 56 PM To: Kim Jordan Subject: Fresh Air Follow Up Flag : Follow up Flag Status: Flagged Dear Kim, I want to implore you and those around you whose decisions will have a far reaching and permanent effect on this community, one of the most beautiful towns in Northern California and, frankly, one of the most beautiful places on earth ( mountains, vineyards, orchards, fresh air, wide open spaces, bird song, etc. ) to NOT PERMIT - the "installation" of yet another big box beast in our midst. If such plans are implemented, the blight of traffic congestion in and around Ukiah ( not just Airport Park), freeway back up, noise, pollution, and the general mayhem that will take over the entire town of Ukiah throughout the week, 7 days a week, will be constant. WHAT A SHAME ! Certainly there must be a better alternative . Teresa Wells �2.C ¢ �V'� a"F�-d- Gl.� � Gc�r�c�,'•n2v-� �.2r--� 3 ` � S ��� � � �,�,v., � ATTACHMENT 3B Pu bl ic� Comment i n Res o n se to p Pu bl ic Notice Kim Jordan From : Darrell Martin <teammartin@att. net> Sent: Monday, November 11 , 2013 9:54 AM To : Kim Jordan Subject: Costco Project Follow Up Flag : Follow up Flag Status : Flagged An e-mail to show my support for the Costco project. Just like my parents I am looking forward to shopping there in 2014 as well .. . . Lucas W Martin i Kim Jordan From : Darrell Martin <teammartin@att. net> Sent: Monday, November 11 , 2013 9: 53 AM To: Kim Jordan Subject: Costco Follow Up Flag : Follow up Flag Status : Flagged HI Kim, A quick e-mail to show our support for the Costco project... . . Looking forward to shopping there in 2014 Darrell & Lori Martin - 1 Kim Jordan From : Darrell Martin <teammartin@att. net> Sent: Monday, November 11 , 2013 9: 55 AM To : Kim Jordan Subject: Costco Project Follow Up Flag : Follow up Flag Status : Completed Hi Kim, This is Lori 's mom, Liz Timko, I don 't own a computer, so I am using there 's to show my support for the new Costco . I can 't wait to shop there in 2014... . . Elizabeth G Timko 1 Kim Jordan From : Dave Hull <dhullins@yahoo . com > Sent: Thursday, October 31 , 2013 3 : 08 PM To: Kim Jordan Subject : Re : Costco Environmental Impact Report and Rezone Public Notice Follow Up Flag : Follow up Flag Status : Completed Kim, I will try to make it on the 21rst but I want you to know I support this project. Our community needs this in many ways. Although the argument I hear is it could hurt other businesses we are losing tremendous tax dollars to Sonoma county and it only makes sense to keep it here as well as provide our community with services they offer and go out of town to get currently. Thank you. Dave Hull Dave Hull Insurance Agency 376 East Gobbi St Ste A Ukiah, CA 95482 Ph : 707 -462 - 6506 Fx : 707 -462 - 6508 From : Kim Jordan <kiordan .cityofukiah .com > To : "Adam Drake (drakeae(�a.yahoo . com )" <drakeae yahoo .com >; Albert Krauss <alkrauss3221 (a�pacific. net>; Albrecht <aibrecht(cr�.pacific. net>; Ali <rainchick96@yahoo .com >; Angela Taylor <anqelapawswedding@�yahoo .com >; Arlene Shippey <ashippevCc�pacific. net>; Better Longcrier <8ailonqcrier(c�comcast. net>; Bev Rae <imsum12(a�icloud .com >; Bill Daniel <danielsteel(a�saber. net>; Bonnie Veblen <bonnieCc�bonnieveblen .com >; 'Brian Korngay' <oneputt(a)pacific. net>; 'Catherine Woskow' < info _catherinewoskow.com >; 'Chelsea Shuler' <ccshulerna�ymail .com >; 'Dan Smith' <Dantsmithj (a�aol . com >; "'Dave Hull (dhullins(cr�.vahoo .com )"' <dhullins(a�yahoo .com >; 'Dave Smith' <qrizzleqritz(c�qmail . com >; 'David Duong' < 168duonc�(a�qmail .com >; 'David Nieskoski' <davenieskoski a(�.camail . com > ; 'Debra Thompson' <wseattledeb@att. net>; 'Dennis Slota' <dennisndoriCc�pacific. net>; Dennis Smart <u2bsmart a(�.vahoo.com >; Edward Mills <millschop(c�qmail . com >; Gail Zettel <zettelCc�pacific. net>; Gregg Young <pvtepadirector(a�pottervallevtribe . com >; Hegan < heqan(a�sonic. net>; Helen Sizemore <helensize@qmail . com > ; Henry Sadowski < UkiahCA@tutorinqcenter.com >; "Holly W . Roberson (hroberson(c�rmmenvirolaw.com )" <hroberson (c�rmmenvirolaw.com > ; Jeffrey Blankfort <jblankfort(a�earthlink. net>; Jerry Wheeler <iqwa(�.huphes . net> ; "jfh(a�willitsonline .com " <jfh(c�willitsonline.com >; 'Jim Slaught' <islauqht(c�lee-associates .com >; 'Jim Sligh' <slickCc�pacific. net>; 'Joan Giannecchini' <joanqian(a�qmail . com >; 'Joan Vivaldo' <j2vivaldo(a�qmail . com >; 'Julie Allen' <sixinthefamil�me .com >; 'Karen Rifkin' < karenrifkin a(�.amail .com >; 'Kathie Godec' <kqodeclandC�saber. net>; "'k1m93@yahoo . com "' <Imk93 a(�.vahoo . com >; "'kopperjd@omsoft.com "' <kopperid (a�omsoft.com >; Lloyd Gregory <Iloydrov1960(c�vahoo . com >; Marilyn Crayton <doodahlandqourds(a�hotmail . com >; Marlene Shupe <ukiahpaper(u�sbcqlobal . net>; Mary Anne Miller <ma-miller(cr�.msn . com > Cc: " Kevin Doble (kdoble(a�doblethomas .com )" <kdoble .doblethomas . com >; Laura Christensen <lauraem (a�sbcglobal . net>; Linda Sanders <kaderliCa�iuno .com >; "Mike Whetzel (tmaviation cni.pacific. net)" <tmaviation(c�pacific. net>; " Pruden , Judy" <hortense(a�pacific. net>; Alan Nicholson <alan(a�anDesiqnStudio.com >; Howie Hawkes <howieCa�hawkesconstruction . com >; Nick Thayer <lateafternoon(c�sbcqlobal . net>; Tom Hise <hiseaiaCu�pacific. net>; Tom Liden <tomliden (a�pacific. neb Sent : Thursday, October 31 , 2013 12 : 39 PM ' Subject : Costco Environmental Impact Report and Rezone Public .Notice 1 Attached is the ublic notice for the Plannin Commission ublic hearin on the Costco EIR and re p g p g zonin g scheduled for Thursday November 21 st . The notice also includes a City Council public hearing notice in the event the Planning Commission makes a recommendation to the City Council on the EIR and rezoning at the November 21 st meeting. The EIR will be available tomorrow, November 1 st. Kim Jordan Senior Planner City of Ukiah Planning and Community Development Department 300 Seminary Avenue, Ukiah, CA 95482 (707) 463 -6207 (707) 463 -6204 fax website: www. cityofukiah. com<http ://www.cityofukiah. com/> 2 1 ITEM NO. 9B Community Development and Planning Department L�ity of Zikah 300 Seminary Avenue Ukiah, CA 95482 planninq c(�.cityofukiah.com (707)463-6203 2 3 DATE: November 21, 2013 4 5 TO: Planning Commission 6 7 FROM: Kim Jordan, Senior Planner 8 9 SUBJECT: Consideration and possible recommendation to City Council to Rezone the 10 Costco Project site to Retail Commercial and direction to staff on the Statement 11 of Overriding Considerations 12 Eastside, south end of Airport Park Boulevard 13 APNs 180-110-08, 09, 10 and 180-080-57, 58, 59, 62, 63, 64, 65, 66, and 67 14 File Nos.: 11-01-REZ-SDP-CC-PC and 11-16-EIR-CC 15 16 RECOMMENDATION 17 18 Staff recommends Planning Commission: 1) conduct a public hearing on the rezoning of the 19 Project parcels and makes a recommendation to the City Council; and 2) provide direction to 20 staff on the Statement of Overriding Considerations (see attachments 1 and 2). 21 22 PROJECT DESCRIPTION 23 24 An application has been received from David Babcock and Associates on behalf of Costco 25 requesting the following (see attachment 3, Project Description and attachment 6, Plans): 26 27 1. City Council approval of a rezoning to amend the Airport Industrial Park Planned 28 Development Land Use Map to change the land use designation of the Costco Project 29 site from Industrial/Auto Commercial and Light Manufacturing/Mixed Use to Retail 3o Commercial (see attachment 6, sheet 3); 31 32 2. Planning Commission approval of a Site Development Permit; and 33 34 3. Consolidation and reconfiguration of the parcels included in the Project 35 36 to allow the construction of a 148,000 square foot Costco Wholesale Warehouse, 20 pump fuel 37 station, 607 parking spaces, landscaping, and associated site improvements on a +/-15.33 acre 38 site located on the eastside of Airport Park Boulevard between Ken Fowler Auto Center and the 39 southern terminus of Airport Park Boulevard (APNs 180-110-08, 09, 10 and 180-080-57, 58, 59, 40 62, 63, 64, 65, 66, 67)within the Airport Industrial Park Planned Development (AIP PD). Costco Wholesale Warehouse Project Rezoning to Amend Airport Industrial Park Land Use Map Eastside,south end of Airport Park Boulevard APNs 180-110-08,09,10 and 180-080-57,58,59,62,63,64,65,66,and 67 File Nos.:11-01-REZ-SDP-CC-PC/11-16-EIR-CC 1 1 2 The proposed Costco Project would include the following: 3 4 ■ bakery, pharmacy, optical center, hearing aid, testing center, food court, photo 5 center, and tire center(sales and installation); 6 ■ sales of over 4,000 retail products; and 7 ■ 16 pump fueling station with the ability to expand to 20 pumps. 8 9 The Costco facility would employ approximately 175 to 200 people, with approximately 50% of 10 the positions being full-time and 50% of the positions being part-time. 11 12 Since the EIR identified significant and unavoidable impacts to Air Quality (operational 13 emissions and cumulative operational emissions), Transportation and Traffic (level of service 14 and queuing), and Global Climate Change (operational emissions), a statement of overriding 15 considerations is required in order to approve the Project (see discussion below). 16 17 SETTING 18 19 The Costco Project would be located on the east side of Airport Park Boulevard south of Ken 20 Fowler Auto Center and north of the existing drainage area. The parcels included in the Project 21 total approximately 18.57 acres and the Costco Project development is proposed to be 22 developed on 15.33 acres north of the drainage area. The Project site is relatively flat and 23 undeveloped. The Project site is covered in grasses and there are several trees located to the 24 east of the site in the Caltrans right-of-way. 25 26 The Project has street frontage on Airport Park Boulevard which would provide the primary 27 access to the site via new driveway curbcuts. An existing access easement ending in a cul-de- 28 sac is located on the north side of the site. This access easement provides access to Ken 29 Fowler Auto Center and will provide access to the loading areas for the Costco store and 30 secondary access to the parking lot. 31 32 The Project site is surrounded by parcels with the following general plan and zoning 33 designations and land uses. 34 General Plan Zonin Land Uses PI'OjeCt Master Plan Area Planned Development(PD)- N/A-Vacant (MPA) Airport Industrial Park Industrial/Auto Commercial Light Manufacturing/Mixed Use NOI'th Master Plan Area Planned Development(PD)- Ken Fowler Auto Center (MPA) Airport Industrial Park Friedman's Home Improvement Industrial/Auto Commercial Staples, Food Maxx Retail Commercial Ashley Furniture Walmart SOUth Master Plan Area Planned Development(PD)- Vacant land (MPA) Airport Industrial Park Mendocino Brewing Company Costco Wholesale Warehouse Project Rezoning to Amend Airport Industrial Park Land Use Map Eastside,south end of Airport Park Boulevard APNs 180-110-08,09,10 and 180-080-57,58,59,62,63,64,65,66,and 67 File Nos.:11-01-REZ-SDP-CC-PC/11-16-EIR-CC 2 Light Manufacturing/Mixed Use Vineyards Industrial County County County East County County U.S. 101 County—Pear orchards (east side of U.S. 101) West Master Plan Area Planned Development(PD)- Vacant parcels with concrete (MPA) Airport Industrial Park debris Light Manufacturing/Mixed Use Les Schwab,small retail stores and restaurants Public(P) Ukiah Municipal Airport PD Ukiah Municipal Airport 1 2 3 STAFF ANALYSIS 4 5 Rezoning. Pursuant to Zoning Ordinance section 9265(A), map and text amendments, 6 including amendments to planned developments, are allowed with the approval of a rezoning. 7 In this case, the rezoning application proposes to amend the Airport Industrial Park Planned 8 Development Land Use Map, which identifies the equivalent of different zoning districts within 9 the AIP PD. The Costco Project includes a Rezoning to change the land use designation of the 10 Costco Project site from Industrial/Auto Commercial and Light Manufacturing/Mixed Use to 11 Retail Commercial as shown on sheet 3 of the Project plans (see attachment 6) as summarized 12 in the table below. 13 Costco Pro'ect Rezonin Land Use Areas AIP PD Existing Proposed Change Land Use Desi nation Retail Commercial 0 15.30 acres +15.30 acres(1) Industrial/Auto Commercial 4.10 acres 0 -4.10 acres Light Manufacturing/Mixed Use 14.47 acres 3.27 acres -11.2 acres 1. Discrepancy with+/-15.33 acres in Project Description due to rounding 14 15 AIP PD Ordinance 1098 includes the zoning requirements for property located within the 16 boundaries of the AIP PD. In addition to the AIP PD Land Use Map, the text of AIP PD 17 Ordinance 1098 has been revised to reflect the changes in the amount and location of Retail 18 Commercial, Industrial/Auto Commercial and Light Manufacturing/Mixed that would result from 19 the proposed rezoning as summarized in the table below and in sections 1, 2, 4 (Retail 20 Commercial, Industrial/Auto Commercial, and Light Manufacturing/Mixed Use), 5 and Land Use 21 Map of the amended AIP PD Ordinance (see attachment 2). 22 Air ort Industrial Park PD Land Use Acrea e AIP PD Land Use Desi nation Existin Pro osed Chan e Costco Wholesale Warehouse Project Rezoning to Amend Airport Industrial Park Land Use Map Eastside,south end of Airport Park Boulevard APNs 180-110-08,09,10 and 180-080-57,58,59,62,63,64,65,66,and 67 File Nos.:11-01-REZ-SDP-CC-PC/11-16-EIR-CC 3 Retail CommerCial 37 acres 52.33 acres +15.3 acre AIP PD Ord. Pa e 1, section 3, #3 Industrial/Auto Commercial 8 acres 3.9 acres -4.1 acres AIP PD Ord. Pa e 1, section 3, #5 Light Manufacturing/Mixed Use 46.5 acres 35.3 acres -11.2 acres (AIP PD Ord. Pa e 1, section 3, #6) 1 2 Planning Commission is required to hold at least one public hearing on the proposed rezoning 3 and make a recommendation to the City Council prior to City Council consideration of the 4 rezoning (zoning ordinance section 9265(D)). 5 6 Findings are not required to be made in order for City Council to approve the rezoning unless 7 the City Attorney advises the City Council to make such findings (zoning ordinance section 8 9265(F)). Although the zoning ordinance does not require findings to be made in order to 9 approve the rezoning, the California Environmental Quality Act (CEQA) requires findings to be 10 made in order to approve the Project since the Costco Wholesale Project EIR identified 11 significant and unavoidable environmental impacts (Air Quality, Traffic and Transportation and 12 Global Climate Change) that would result from the Project (see Costco Wholesale Project EIR 13 staff report (item 9A of this agenda) and Statement of Overriding Considerations section 14 below). 15 16 General Plan. All of the Airport Industrial Park PD, including the parcels that are the subject of 17 this application, has a General Plan land use designation of Master Plan Area (MPA). The MPA 18 land use designation is intended to meet precise planning needs and is a means of providing for 19 a variety of land uses in larger areas and/or areas with parcels under multiple ownerships. The 20 MPA designation is the intended land use for areas proposed for specific plans, areas plans, or 21 planned developments. In this case, the MPA designation is applied to a planned development 22 (PD). The land uses allowed and development standards are included in the PD ordinance 23 approved by City Council. In this case, the land uses and development standards are included 24 in Airport Industrial Park Planned Development (AIP PD) Ordinance 1098 approved by City 25 Council on August 1, 2007. 26 27 The general plan goals and policies applicable to the Project have been included in the Costco 28 Wholesale Project EIR (see DEIR, chapter 3.7, pages 3.7-4 to 3.7-11). Some of the goals and 29 policies identified are more applicable on a programmatic basis than on a project basis; 3o however, all of the goals and policies were included in the general plan analysis in order to 31 provide as much information as possible to decision makers and the public. 32 33 Staff has reviewed the general plan goals and policies in order to identify those goals and 34 policies that are typically addressed on a programmatic basis. These goals and policies are 35 identified in italics as Program Level Goal/Policy in the table below. Economic Development 36 goal ED-1 is included in Table 2. This goal was not included in the EIR since it is related to 37 economic development and does not relate to an environmental effect. Staff requests Planning 38 Commission provide direction as to whether or not the Project is consistent goal ED-1. 39 40 Additional information related to consistency is included as italics Costco Wholesale Warehouse Project Rezoning to Amend Airport Industrial Park Land Use Map Eastside,south end of Airport Park Boulevard APNs 180-110-08,09,10 and 180-080-57,58,59,62,63,64,65,66,and 67 File Nos.:11-01-REZ-SDP-CC-PC/11-16-EIR-CC 4 1 2 3 Table 1: General Plan Consistency Analysis Goal/Polic # and Tex Consisten Anal sis Economic Develo ment ED-1 Staff requests the Planning Commission Provide direction to staff on Support a strong local economy. the Project's consistency with this goal. For past projects, Planning Commission has considered revenue generation such as an increase in property tax and/or sales tax revenue,job creation (including the number,type,and benefits and income associated with the jobs),and/or whether the applicant was a local resident or business owner when making this consistency finding. Planning Commission may also consider other information provided as part of the record. See Costco Project Fiscal Impact Analysis and Statement of Project Benefits(attachments 3 and 4J. Overall General Plan Goals and Policies GP-1 This policy(vision statement)is unrelated to potential physical impacts that Promote,attract or assist in developing may result from the proposed Project.Consistency with this policy will be businesses,particularly those that add value determined by the Planning Commission. to resources already found or processed in the Ukiah Valley. GP-2 This policy(vision statement)is unrelated to potential physical impacts that Promote business development,emphasizing may result from the proposed Project.Consistency with this policy will be local ownership of businesses in order to keep determined by the Planning Commission. capital growth within the community. GP-20.2 Program Level Goal/Policy Protect water supplies from adverse impacts. This policy is(vision statement)does not apply to individual projects. Nevertheless,the proposed Project would implement construction and operational stormwater quality protection measures in compliance with the Stormwater Pollution Prevention Plan and the City's Stormwater Management Plan,including implementation of an erosion and sediment control plan. Additional mitigation is proposed to address water quality impacts during grading and dewatering activities.See Section 4.6 for a listing of regulatory requirements and mitigation measures designed to protect water quality. GP-20.3 As described in Section 3.2,Air Quality,the proposed Project would exceed Maintain and enhance air quality. the applicable thresholds for criteria pollutants including particulate matter and ozone precursors.However,this policy does not create a mandate for individual development projects.At the project level,the project is potentially inconsistent with this goal,although regionally,it may not be inconsistent(by diverting trips that would otherwise go to more distant regional shopping centers).Ultimately,consistency with this policy will be determined by the decision making body. GP-24 The project is located in an area designated for development,with height Conserve and enhance the natural beauty of restrictions and development standards to implement the general plan.A the Ukiah Valley detailed discussion of visual resources is found in Section 3.1,Aesthetics. GP-25 See detailed discussion of this topic in Section 3.1,Aesthetics. Ensure aesthetic qualities in the design and construction of the community. See FEIR Master Response#1,Aesthetics and Visual Simulations 6P-25.2 The proposed Project does not include open space(as defined by City Costco Wholesale Warehouse Project Rezoning to Amend Airport Industrial Park Land Use Map Eastside,south end of Airport Park Boulevard APNs 180-110-08,09,10 and 180-080-57,58,59,62,63,64,65,66,and 67 File Nos.:11-01-REZ-SDP-CC-PC/11-16-EIR-CC 5 Table 1: General Plan Consistency Analysis Goal/Poli # and Tex Consisten Anal sis In areas to be developed or redeveloped, ordinance)or common space.However,this policy does not create a mandate ensure usable open space and common space. for individual parcels or development projects. GP-26 For the project site,general plan landscaping goals are implemented through Require that landscaping be a significant Ordinance No. 1089.The proposed Project will include landscaping as a component of development and requirement of new development(see the landscaping plans in the Project redevelopment. Description.Compliance with the ordinance will be determined by the Planning Commission as part of its review of the Site Development Permit. See FEIR Master Response#1,Aesthetics and Visual Simulations GP-27 See GP-24. Maintain scenic viewsheds of the Valley. GP-28 Program Level Goal/Policy Make Ukiah a leader in the development of This policy does not specify standards applicable to individual project.It is responsible resource-conserving ways of living noted that the proposed Project includes multiple sustainable design features and doing business,giving the fullest designed to reduce consumption of resources.See Section 3.0,Project consideration to the impacts of our actions on Description,for the complete list. future generations. GP-29.3 While the proposed use relies heavily on the automobile,the Project is located Promote public transportation,services within in an existing retail area designated for such uses,and mitigation measures will walking distance in neighborhoods,and any upgrade the transit,bicycle and pedestrian infrastructure(see Section 3.10, other feasible means of preventing needless Transportation). vehicle use and pollution. Open Space and Conservation OC-1.2 See GP-25.2. New residential,commercial,and industrial development shall include open space as defined in the Land Development Code. OC-7.4 The project includes design features to lessen stormwater runoff.See the Take measures to lessen flooding resulting discussion of this topic in Section 3.6,Hydrology. from runoff. OC-9.5 The project would not impact riparian areas.See the discussion of this topic in Establish water course protection areas with Section 3.6,Hydrology and 3.12, Biological Resources. construction limits to provide protection for riparian vegetation and stream banks. OC-13.1 Program Level Goal/Policy Maintain long-term sustained yield of the The project would not significantly impact groundwater.See detailed Valley's groundwater system shall be the discussion of this topic in Section 3.6,Hydrology. standard for evaluation for groundwater protection programs. OC-14.1 Program Level Goal/Policy Support actions to retain water in the Ukiah This policy does not directly relate to the project.The project would use Valley. municipal domestic water and would not affect water rights or export water. OC-15.1 The proposed Project would implement construction and operational Protect water quality from adverse impacts of stormwater quality protection measures in compliance with the urban and agricultural runoff. Stormwater Pollution Prevention Plan and the Cit�/s Stormwater Management Plan,including implementation of an erosion and sediment control plan. Additional mitigation is proposed to address water quality impacts during grading and dewatering activities.See Section 3.6 for a discussion of regulatory requirements and mitigation measures designed to protect water quality. OC-16 The proposed Project would implement construction and operational Costco Wholesale Warehouse Project Rezoning to Amend Airport Industrial Park Land Use Map Eastside,south end of Airport Park Boulevard APNs 180-110-08,09,10 and 180-080-57,58,59,62,63,64,65,66,and 67 File Nos.:11-01-REZ-SDP-CC-PC/11-16-EIR-CC 6 Table 1: General Plan Consistency Analysis Goal/Poli # and Tex Consisten Anal sis Design parking facilities to reduce runoff and stormwater quality protection measures in compliance with the Stormwater surface water contamination. Pollution Prevention Plan and the City's Stormwater Management Plan, including implementation of an erosion and sediment control plan.See Section 3.6 for a listing of regulatory requirements and mitigation measures designed to protect water quality. OC-16.1 The proposed Project would implement construction and operational Protect surface water supplies from water stormwater quality protection measures in compliance with the Stormwater generated in parking lots. Pollution Prevention Plan and the City's Stormwater Management Plan, including implementation of an erosion and sediment control plan.See Section 3.6 for a listing of regulatory requirements and mitigation measures designed to protect water quality. OC-16.2 Program Level Goal/Policy Manage stormwater flows to reduce the The proposed Project would implement construction and operational hazard of flooding from increased stormwater stormwater quality protection measures in compliance with the Stormwater flows. Pollution Prevention Plan and the City's Stormwater Management Plan.The Project design also includes swales and detention areas to mitigate the increase in stormwater flows.See Section 3.6 for a listing of regulatory requirements and mitigation measures designed to reduce flood impacts of stormwater flows. OC-22 No native Valley oaks would be disturbed or otherwise affected by the Conserve and replenish valley oaks in the proposed project. Valley. OC-22.1 No native Valley oaks would be disturbed or otherwise affected by the Maintain,protect,and replant stands of proposed project. Valley Oaks. OC-23 The proposed Project incorporates some native plants and trees that will Native plant landscaping shall be encouraged. survive in a commercial development environment. OC-25 Trees and other vegetation will be planted as part of the proposed Project Maintain and enhance the City's canopy of (see Figure 2-5).No tree removals are proposed. shade trees. OC-25.1 No healthy mature trees would be removed either on or off site.Trees and Protect existing healthy mature trees to other vegetation will be planted as part of the proposed Project(see Figure 2- maintain shade and area attractiveness. 5). OC-28 See detailed discussion of this topic in Section 3.1,Aesthetics. Visually enhance the Highway 101 corridor through the Planning Area. OC-28.1 The proposed Project includes new landscaping adjacent to the Highway 101 Upgrade the visual appearance of the corridor corridor and screening of all rooftop-mounted equipment. along Highway 101. OC-29 Trees and other vegetation will be planted as part of the Landscape Plan.No Maintain and enhance the"urban forests" tree removals are proposed. which create a sense of urban space. OC-29.1 While this policy refers to City procedures,it is noted that trees and other The development review process shall vegetation will be planted as part of the proposed Project. incorporate measures to maintain and enhance the urban tree canopy. OC-31.1 Program Level Goal/Policy Concentrate development to encourage mass The proposed Project is located in a concentrated commercial area and is transit and limit automobile use. surrounded by similar land uses.While wholesale retail relies upon automobile use,the proposed Project would also provide for the expansion of Costco Wholesale Warehouse Project Rezoning to Amend Airport Industrial Park Land Use Map Eastside,south end of Airport Park Boulevard APNs 180-110-08,09,10 and 180-080-57,58,59,62,63,64,65,66,and 67 File Nos.:11-01-REZ-SDP-CC-PC/11-16-EIR-CC 7 Table 1: General Plan Consistency Analysis Goal/Poli # and Tex Consisten Anal sis existing transit service in the vicinity. OC-32.1 The EIR identifies several mitigation measures,including project design The City and County shall require all air quality features,to reduce emissions from the proposed Project. mitigation measures to be reasonable, effective,feasible,measureable,and implementable concurrent with project development. OC-34.1 The MCAQMD has been contacted,and has submitted a scoping letter to the Submit all discretionary applications to the City.The City will circulate the Draft EIR to the MCAQMD. MCAQMD for review and comment. OC-37.2 The proposed Project would implement construction air quality mitigation Work to reduce particulate emissions from measures to reduce emissions from construction sources in accordance with construction activities. MCAQMD guidelines.See Section 3.2,Air Quality. OC-38.1 The proposed Project would include central HVAC,powered by electricity and Require"clean air"heat sources in new natural gas. construction. Noise NZ-1 The proposed Project would not result in a significant impact to residential Stabilize or reduce transportation noise areas regarding transportation noise.See detailed discussion of this topic in impacts on adjacent residential. Section 3.8,Noise. NZ-1.6 The proposed Project is located beyond the noise contour line in which Incorporate sound reducing measures in new impacts from airport operations would be expected. construction around the airport. NZ-2.2 An analysis of the ProjecYs noise impacts has been conducted(see Section Ensure adequate analysis of noise impacts 3.8,Noise).Mitigation measures are proposed to reduce construction and when reviewing project permits. operational noise impacts on sensitive receptors. NZ-23 The City's General Plan Noise Element standards are consistent with state Land use designations shall follow State of guidance(the General Plan Guidelines)and apply to all development projects. California noise and land use compatibility See discussion of this topic in Section 3.8,Noise. guidelines. NZ-2.4 Noise analysis demonstrates a less-than-significant effect on existing sensitive Protect existing residential areas from future receptors.See Section 3.8,Noise. noise impacts. Safety SF-1 See discussion of this topic in Section 3.4,Geology and Soils. Regulate new development in fault zones. SF-1.1 The proposed Project is not located within an Alquist-Priolo Earthquake Fault Avoid urban-scale development within Zone. Alquist-Priolo Earthquake Fault Zones. SF-2 See discussion of this topic in Section 3.4,Geology and Soils.The impact Regulate development across or near analysis identifies feasible mitigation measures that would reduce seismic risk earthquake faults outside the Alquist-Priolo to less than significant. Earthquake Zone. SF-2.1 The proposed Project would comply with all applicable California Building Provide development guidelines for building Standards Code requirements. outside Alquist-Priolo Earthquake Fault Zones. SF-2.2 The Project site has a low probability of landslide hazard.See discussion of Protect people and property from landslide this topic in Section 3.4,6eology and Soils. danger. Costco Wholesale Warehouse Project Rezoning to Amend Airport Industrial Park Land Use Map Eastside,south end of Airport Park Boulevard APNs 180-110-08,09,10 and 180-080-57,58,59,62,63,64,65,66,and 67 File Nos.:11-01-REZ-SDP-CC-PC/11-16-EIR-CC 8 Table 1: General Plan Consistency Analysis Goal/Poli # and Tex Consisten Anal sis SF-3.1 The Project site is not located within a 100-year flood zone. Ensure adequate standards for development within the One Hundred Year Flood Plain. Energy EG-1 Program Level Goal/Policy Create land use patterns which facilitate the While this goal is more relevant to the general plan level(as opposed to individual conservation of energy. projects),it is noted that the proposed Project is consistent with established land use patterns. EG-1.1 While this policy is more relevant to the general plan level,the proposed Locate shopping,employment and recreation Project will include sidewalks and frontage bicycle routes allowing access to opportunities within walking or bicycling the Project site.Bicycle racks will also be required.The Project site is within an distance of proposed and existing housing. established retail area. EG-4 The proposed Project would include energy-conserving features,including Maximize on-site energy use,especially in reflective roof materials and skylights. new developments. EG-4.1 The proposed Project would include energy-conserving features such as Incorporate solar energy considerations into skylights,solar reflective building panels,white roofs,and appropriate tree the design,review and approval of all plantings(passive cooling),which have solar attributes.However,the project development. does not include active solar energy(such as photovoltaic energy). Ultimately, consistency with this policy will be determined by the Planning Commission as part its review of the Site Development Permit. EG-5 Shade trees will be planted as part of the proposed Project(see Figure 2-5). Site design shall incorporate shade trees for energy conservation. EG-5.1 Shade trees will be planted as part of the proposed Project(see Figure 2-5). Encourage minimum canopy coverage of all paved area on a lot. EG-6 The proposed Project would include energy-conserving features such as Promote energy efficiency features in the skylights,high R-value wall panels,and white roofs. design of all new structures and in the retrofitting of existing structures. EG-6.1 See Policy EG-6 discussion. Design new buildings with the maximum feasible energy efficiency. Parks and Recreation PR-13.3 The proposed Project will include bicycle routes allowing access to the Project All new developments shall incorporate safe site,per City plans.Bicycle racks will also be included. bicycle lanes in project street design. Historic and Archaeological Resources HA-3 The proposed Project consists of a new Costco Wholesale Warehouse located Maintain,protect,and enhance the area's in an urbanized area of the City of Ukiah that is generally devoted to heritage,including and not limited to its commercial and retail uses.The proposed Project includes landscaping cultural,historical,spiritual,social,economic, designed to be compatible with adjacent properties,and screening of rooftop architectural,agricultural,archaeological,and mechanical equipment.Design and materials of the proposed Project would be scenic heritage. consistent with the project vicinity. HA-4 The proposed Project consists of a new Costco Wholesale Warehouse located Conserve the character and architecture of in an urbanized area of the City of Ukiah that is generally devoted to neighborhoods. commercial and retail uses HA-4.1 The proposed Project consists of a new Costco Wholesale Warehouse located Consider the visual character of surrounding in an urbanized area of the City of Ukiah that is generally devoted to Costco Wholesale Warehouse Project Rezoning to Amend Airport Industrial Park Land Use Map Eastside,south end of Airport Park Boulevard APNs 180-110-08,09,10 and 180-080-57,58,59,62,63,64,65,66,and 67 File Nos.:11-01-REZ-SDP-CC-PC/11-16-EIR-CC 9 Table 1: General Plan Consistency Analysis Goal/Poli # and Tex Consisten Anal sis developments when reviewing discretionary commercial and retail uses.The proposed Project includes landscaping project approvals. designed to be compatible with adjacent properties,and screening of rooftop mechanical equipment.Mitigation Measure 3.1-3 would require the preparation of a photometric plan demonstrating that lighting will not spillover onto adjacent properties.All outdoor light fixtures would be directed downwards. Design and materials of the proposed Project would be consistent with the project vicinity. Community Facilities and Services CF-3 The proposed Project would incorporate drought resistant plants and high- Promote water conservation. efficiency irrigation to conserve water. CF-11 Program Level Goal/Policy Ensure adequate public school facilities While this policy does not create specific requirements for commercial necessary to sustain a quality learning development,it is noted that the developer would be required to pay environment as the population of the applicable school impact fees in accordance with SB 50. Planning Area increases. CF-11.2 Program Level Goal/Policy Consider potential impacts on the Ukiah The proposed Project would not be expected to result in a substantial Unified School District during the review of increase in school-aged children.The developer would be required to pay discretionary projects. applicable school impact fees in accordance with SB 50. Circulation CT-1.1 The roads providing primary access to the site consist of arterial and collector Land use entitlements shall be based on the streets.The proposed Project,in combination with current and proposed classification and capacity of the street or development,would contribute trips to some intersections that are road providing primary access. anticipated to operate below acceptable standards.Necessary intersection improvements have been identified,and the Project applicant is required to provide fair-share payments to fund the improvements.Additionally,the Project is located in an area designated for commercial development,and will have satisfied its obligations by providing fair share contributions to roadway improvements. CT-13 The proposed Project has been analyzed for its direct and cumulative All proposed development shall be reviewed transportation impacts(see Section 3.10,Transportation).The proposed for its immediate and cumulative Project would contribute trips to intersections that cumulatively are transportation impacts. anticipated to operate below acceptable standards. Necessary intersection improvements have been identified,and the Project applicant is required to provide fair-share payments to fund the improvements.Although the EIR conservatively finds that cumulative transportation impacts are significant, due to uncertainty regarding the funding and timing of necessary improvements,the Project will have satisfied its obligations by providing fair share contributions to improvements.The General Plan does not require the denial of a proposed development that would cause transportation impacts. Rather,it specifies that these impacts be considered in relation to the need for new development(Policy CT-16.4)and provides responses to these impacts in Implementation Measure CT-16.4(d). CT-3 The proposed Project will include sidewalks and bicycle routes allowing access Design new development and redevelopment to the Project site.Bicycle racks will also be included.Mitigation Measure projects to be as accessible by foot,bicycle, 3.10.2a requires the Project applicant to construct a pad for the addition of an and transit,as they are by auto. MTA transit stop.See Section 3.10,Transportation,for additional information. CT-3.1 See Policy CT-3 discussion. New development and Redevelopment projects shall specifically include plans for Costco Wholesale Warehouse Project Rezoning to Amend Airport Industrial Park Land Use Map Eastside,south end of Airport Park Boulevard APNs 180-110-08,09,10 and 180-080-57,58,59,62,63,64,65,66,and 67 File Nos.:11-01-REZ-SDP-CC-PC/11-16-EIR-CC 10 Table 1: General Plan Consistency Analysis Goal/Poli # and Tex Consisten Anal sis pedestrian facilities,bike lanes,bike racks, and transit stops. CT-6 Program Level Goal/Policy Increase the use of bicycle transportation. The proposed Project will include bicycle lanes on the project frontage. Bicycle racks will be installed at the Project site.See Section 3.10,Transportation,for additional information. CT-6.2 Program Level Goal/Policy Promote the use of bicycles as a viable and See Policy CT-6 discussion. attractive alternative to cars. CT-6.3 See Policy CT-6 discussion. Provide bicycle lanes or paths along major streets. CT-7 The proposed Project will include sidewalks on adjacent streets and within the Develop pedestrian access. Project site(parking lot).See Section 3.10,Transportation,for additional information. CT-7.1 See Policy CT-7 discussion. Treat pedestrian access as an integral part of all road improvements within the City and within urbanized development areas of the County. CT-8 Program Level Goal/Policy Encourage increased use of public While this policy does not identify specific requirements for development transportation. projects,the Project site will be served by a transit stop. CT-8.1 Make it easier to utilize bus service. CT-9 Program Level Goal/Policy Maximize the use of public transportation While this policy does not identify specific requirements for individual through efficient land use patterns and development projects,the Project site will be served by a transit stop.The supporting incentive programs Project is located in an area,adjacent to existing development,designated for such uses. CT-9.1 See policy discussion CT-8. Include design features in new commercial and residential areas that make public transportation convenient. CT-9.2 Program Level Goal/Policy Support a strategy to provide funding and Consistent:While this policy does not create specific requirements for incentives to increase ridership opportunities. development projects,the Project site will be served by a transit stop. CT-11 While this policy does not necessarily apply on a project by project basis, Encourage increased use of car-or van- Mitigation Measure 3.2.2b would encourage car or vanpooling. pooling. CT-11.1 Program Level Goal/Policy Implement programs to increase car-pooling. See Policy CT-11 discussion. CT-13.1 Proposed landscaping in the parking lot will include suitable shade trees and Utilize landscaping and other amenities to perimeter landscaping(see Figure 2-5). improve the appearance and traffic patterns of onsite parking facilities. CT-16 See Policy CT-1.1 and CT1.3 discussions.The Project would contribute to a Development shall be permitted within road cumulative impact at the Talmage Road/US 101 interchange.It should be capacities. noted that the capacity of this interchange will be exceeded in the future (with or without the proposed Project),and that the implementation of future Costco Wholesale Warehouse Project Rezoning to Amend Airport Industrial Park Land Use Map Eastside,south end of Airport Park Boulevard APNs 180-110-08,09,10 and 180-080-57,58,59,62,63,64,65,66,and 67 File Nos.:11-01-REZ-SDP-CC-PC/11-16-EIR-CC 11 Table 1: General Plan Consistency Analysis Goal/Poli # and Tex Consisten Anal sis mitigation requires a joint effort between the City of Ukiah and Caltrans. Implementation Measure CT-16.4(d)of the General Plan provides a means for development projects to comply with this goal by contributing to identified improvements(traffic mitigation measures). CT-16.1 The study intersections were analyzed using methodologies published in the Level of service shall be the standard to judge Highway Capacity Manual.The Ukiah Valley General Plan and Growth whether a road has adequate remaining Management Program establish the criteria for acceptable operation.See capacity to service the traffic generated by a Section 3.10 for a discussion of LOS standards and analysis. proposed project. CT-16.4 The proposed Project would contribute trips to intersections that are Balance the need for new development with anticipated to operate below acceptable standards.Necessary intersection methods of accommodating increasing traffic. improvements have been identified,and the Project applicant is required to provide fair-share payments to fund the improvements.Although intersections may operate below acceptable standards after the Project is operational because improvements may not be in place,the Project will have satisfied its obligations by providing fair share contributions to improvements (consistent with General Plan Implementation Measure CT-16.4(d). Community Design CD-1.1 The proposed Project will include elevations broken up into a variety of Encourage appropriate scale,materials, heights and depths,earth tone colors,and a combination of natural and setbacks,and landscaping to enhance the contemporary materials to provide contrasting colors and textures in order to Valley's beauty and historic fabric. break up building mass.Landscaping is also incorporated into the site plan. See Figures 2-5 and 2-6. CD-2.1 The proposed Project,while utilitarian,includes design and landscaping Encourage developers to construct new elements to enhance the Project vicinity,which consists of commercial buildings and settings of such quality that development. Ukiah's future citizens will wish to protect them. CD-2.2 The proposed Project is located in an area designated for large-scale Ensure that developments relate commercial development.Ordinance 1098 includes requirements for harmoniously with each other within districts. appropriate design,setbacks,and landscaping which are intended to increase/ensure compatibility with surrounding development. CD-3 See Policy CD-2.1 and CD-2.2 discussions. Provide an aesthetically pleasing urbanscape. CD-4 Landscaping standards for the Project site are established by Ordinance 1098. Seek uniform,attractive landscaping The Project must comply with these standards or or rquest a modification to standards for non-single family residential the standard.Planning Commission determines consistency as part of its development throughout the Valley. review of the Site Development Permit.See the Landscaping Plan, Figure 2-5. CD 4.1 See Goal CD-4 discussion. Establish and enforce landscaping standards in all non-single family residential,multi- family residential,commercial,and industrial development and all redevelopment projects. CD-4.2 The proposed Project incorporates some native plants and trees that will Encourage planting of native trees and plants. survive in a commercial development environment.See Figure 2-5. CD-4.3 While the proposed Project includes perimeter landscaping,most of the Require landscaping that will result in the future shade trees are within the parking area. creation of new street canopies. See Visual Simulations included in FEIR and Project plans. CD-5 See Section 3.1,Aesthetics.The Project would incorporate landscaping and Preserve and enhance the scenic setting of building design compatible with the Project area. Costco Wholesale Warehouse Project Rezoning to Amend Airport Industrial Park Land Use Map Eastside,south end of Airport Park Boulevard APNs 180-110-08,09,10 and 180-080-57,58,59,62,63,64,65,66,and 67 File Nos.:11-01-REZ-SDP-CC-PC/11-16-EIR-CC 12 Table 1: General Plan Consistency Analysis Goal/Poli # and Tex Consisten Anal sis the Ukiah Valley. CD-5.1 The Project site is located in a designated urban commercial development Maintain areas without urban scale area,and would not encroach on a community separator. development that provide visual separation between the Valley's communities. CD-5.3 The proposed Project will include new landscaping adjacent to the Highway Encourage an attractive U.S.101 viewshed. 101 corridor and screening of all rooftop-mounted equipment.In addition, parking lot lighting would be directed downwards away from the highway and the sky.The Project footprint is oriented in such a way,that combined with screening,the"back of the house"(e.g.loading)functions of the Project would not be visible from Highway 101. See Visual Simulations included in FEIR and Project plans. CD-6 As discussed under Policy CD-5.1,the Project site is not located within an Ensure community separation and existing or potential community separator. identification. CD-6.1 See Policy CD-5 and CD-5.1 discussions. Enhance,protect and preserve viewscapes and visually important community separators. CD-7 US 101 is identifies as a first level gateway in the General Plan.See Policy CD- Improve the appearance of area gateways. 5.3 discussion. CD-7.1 See Policy CD-7 discussion. Establish public policy to enhance and improve the appearance of area gateways. CD-8 Program Level Goal/Policy Recognize that general area appearance- The Project site is a vacant parcel within an existing commercial development. especially of orchards and vistas-is a cultural The Project would not block views of scenic vistas or orchards. and visual resource. CD-8.1 The proposed Project would not block views of scenic vistas.The Project Encourage the preservation of scenic views, would incorporate perimeter landscaping on all street sides,and along all vistas,and streetscapes. property lines,including US 101,and is designed to minimize the appearance of mass from the street views. See Visual Simulations included in FEIR. CD-17 The implementation measures for the policy encourage,when feasible,to Require commercial and industrial parking locate parking facilities at the rear of the main structure. Proposed project is lots to be designed and sited so as to increase adjacent to Airport Park Blvd,with parking at rear and side of building.The the attractiveness of the areas in which they parking lot is screened by perimeter landscaping trees on all sides to reduce are located. the prominence of the parking lot and to screen it from surrounding uses, streets,and US 101. See Visual Simulations included in FEIR and Project plans. CD-17.1 See Policy CD-17 discussion. Require commercial and industrial parking See Visual Simulations included in FEIR and Project plans. lots to be designed subservient to the structure it serves. 1 2 3 Ukiah Municipal Airport Master Plan 8� Mendocino County Airport Comprehensive Land 4 Use Plan (CLUP). The Ukiah Municipal Airport Master Plan and Mendocino County Airport 5 Comprehensive Land Use Plan (CLUP) include compatibility criteria to ensure that development Costco Wholesale Warehouse Project Rezoning to Amend Airport Industrial Park Land Use Map Eastside,south end of Airport Park Boulevard APNs 180-110-08,09,10 and 180-080-57,58,59,62,63,64,65,66,and 67 File Nos.:11-01-REZ-SDP-CC-PC/11-16-EIR-CC 13 1 is compatible with airport operations. The Project is located in Airport Compatibility Zone C 2 (Common Traffic Patterns). 3 4 Rezoning of property requires Mendocino County Airport Land Use Commission (ALUC) review 5 and approval of a compatibility determination. On January 17, 2013, the ALUC reviewed the 6 proposed rezoning of the Project parcels and voted unanimously (7-0) that the proposed 7 rezoning was consistent with the Mendocino County Airport CLUP (see Costco Wholesale 8 Project FEIR, Appendix A). Table 3 includes the applicable compatibility criteria with staff 9 analysis. 10 Table 2: Air ort Com atibili Criteria Anal sisl Normally Acceptable Uses: The Project is considered an intensive retail use which Intensive retail uses, intensive manufacturing is a Normally Acceptable Use in compatibility zone C. or food processing uses,two-story motels, multi-family residential, residential subdivisions, parks/playgrounds Maximum Non-Residential Intensity: Based on a 15.30 acre site,a maximum of 2,995 people 150 people per acre would be allowed on the site at any time. The Project includes 607 parking spaces. Based on 1.5 persons per vehicle,911 people would be onsite at any one time. This 2,084 fewer people than the maximum allowed on the site. Open Land: Based on a building area (148,000 sf)and fuel station 15%Recommended.To be calculated over the canopy(2,816 sf), 150,816 sf would be developed with entire zone(for planning and zoning buildings and structures(approximately 23%of the purposes). site). This would result in 77%open land which exceeds the amount of open land recommended in zone C. 1. For additional information on Consistency with Airport Compatibility Criteria see DEIR page 3.5-15 and FIER Appendix A 11 12 Zoning. The subject property is zoned Planned Development (PD) and is part of the Airport 13 Industrial Park (AIP) PD. Since the purpose of the Project is to allow the construction of a 14 membership-based retail store and fueling station, the application includes a rezoning to amend 15 the AIP PD Land Use Map to change the land use designation of the Costco Project site to 16 Retail Commercial (as described above). The remainder of the area would retain its existing 17 Light Manufacturing/Mixed Use land use designation. 18 19 AIP Ord. 1098 regulates the development of property located within the boundaries of the 2o Airport Industrial Park PD and includes development standards and allowed and permitted land 21 uses. Since the application proposes to rezone the Project site to Retail Commercial, Table 3 22 below identifies the AIP PD Ord. 1098 standards that are applicable to the rezoning and also 23 includes staff analysis. AIP Ordinance 1098 also includes requirements for Landscaping and 24 Open Space, Orientation and Location of Buildings, Architectural Design, Building Exteriors, 25 Lighting, Design Amenities, Sidewalks and Bike Lanes, and Screening. These requirements are 26 implemented and analyzed as part of the Site Development Permit required for the Project. 27 Planning Commission review of the Site Development Permit is tentatively scheduled for the 28 December 11, 2013 Planning Commission meeting. Costco Wholesale Warehouse Project Rezoning to Amend Airport Industrial Park Land Use Map Eastside,south end of Airport Park Boulevard APNs 180-110-08,09,10 and 180-080-57,58,59,62,63,64,65,66,and 67 File Nos.:11-01-REZ-SDP-CC-PC/11-16-EIR-CC 14 1 2 3 Table 3: AIP Ordinance 1098 Consistency Analysis — Retail Commercial Land Use Desi nation Minimum Lot Size: 20,000 sf The Costco Project site would be 15.3 acres which exceeds the (there is no maximum lot size required minimum lot size. requirement) The 3 parcels located to the south of the parcel on which the Costco Project would be constructed would range in size from a minimum of 34,688 sf to a maximum of 67,260 sf.which also exceeds the minimum lot size. Minimum Lot Frontage: 100 feet Lot 1 which would be developed with the Costco Project has street (there is no maximum lot frontage on Airport Park Boulevard. The street frontage is frontage requirement) approximately 940 feet measured from the proposed south property line to the access easement at the cul-de-sac to the north or 915 feet when measured from the south property line to the face of curb at access easement to the north of the site. The cul-de-sac on the north side of the site is an existing access easement approved as part of a previous subdivision. The existing access easement would remain and would provide access to the loading area and secondary access to the Costco parking lot. The access easement would also continue to provide access to Ken Fowler Auto Center. Lot 2 and Lot 3 would have frontage on Airport Park Boulevard. Lot 2 is comprised primarily of the existing drainage area located south of the parcel that would be developed with Costco. Lot 3 is vacant. Both lots comply with the minimum lot frontage requirement. Lot 4 is vacant and consists of a portion of the drainage area. Lot 4 has no frontage on a public street. Access to the site would be reviewed as part of proposed future development of the site. Access easements are allowed with approval of the decision-maker and City Engineer. Ukiah Municipal Airport Master Consistent Plan See Ukiah Municipal Airport Master Plan& Mendocino County Airport Comprehensive Land Use Plan(CLUPJ discussion above 4 5 6 ENVIRONMENTAL REVIEW 7 8 An environmental impact report (EIR) has been prepared for the proposed Project (see Costco 9 Wholesale Project EIR). The EIR analyzed the potential for the Project to result in significant 10 impacts to Aesthetics, Air Quality, Urban Decay, Geology and Soils, Hazards and Hazardous 11 Materials, Hydrology and Water Quality, Land Use and Planning, Noise, Public Services and 12 Utilities, Transportation and Traffic, Global Climate Change, Biological Resources, Population 13 and Housing, and Cultural Resources. Below is a summary of the level of impact identified for 14 the environmental topics analyzed in the EIR: Costco Wholesale Warehouse Project Rezoning to Amend Airport Industrial Park Land Use Map Eastside,south end of Airport Park Boulevard APNs 180-110-08,09,10 and 180-080-57,58,59,62,63,64,65,66,and 67 File Nos.:11-01-REZ-SDP-CC-PC/11-16-EIR-CC 15 1 2 ■ Less than Significant: The EIR analysis concluded the Project's potential impacts 3 related to Urban Decay, Land Use and Planning, Noise, Public Services and Utilities, 4 and Population and Housing would be less than significant (LTS). No mitigation 5 measures are needed for impacts identified as LTS. 6 7 ■ Potentially Significant Impacts: The EIR analysis concluded the Project's potential 8 impacts related to Aesthetics (light and glare), Geology and Soils, Hazards and 9 Hazardous Materials, Hydrology and Water Quality, Biological Resources, and Cultural 10 Resources would be potentially significant (PS). The EIR identified mitigation measures 11 that would reduce these impacts to LTS (see FEIR, Mitigation Monitoring and Reporting 12 Program). 13 14 ■ Significant and Unavoidable: The EIR analysis concluded the Project's potential 15 impacts to Air Quality (operational emissions and cumulative operational emissions), 16 Transportation and Traffic (level of service and queuing), and Global Climate Change 17 (operational emissions exceed established threshold) would be significant and 18 unavoidable (SU). The EIR identifies mitigation measures that would reduce the impacts 19 identified; however, the mitigation measures would not reduce the impacts to LTS. 20 Since the impacts could not be reduced to LTS with the mitigation measures, the 21 impacts are considered to be significant and unavoidable. 22 23 For more information on the Costco Wholesale Project EIR see the staff report for item 9A of 24 this agenda (Costco Wholesale Project EIR). 25 26 STATEMENT OF OVERRIDING CONSIDERATIONS 27 28 A project with significant and unavoidable impacts (as identified above) may be approved if the 29 economic, legal, social, technological or other benefits of the proposed project outweigh the 30 significant and unavoidable environmental effects of the project; in which case these 31 environmental effects may be considered "acceptable." CEQA Guidelines section 15093 32 requires decision makers to balance the economic, social, technological, or other benefits of the 33 proposed project against its unavoidable environmental impacts when deciding whether or not 34 to approve a project with significant and unavoidable impacts. 35 36 In order to approve a project that would result in significant and unavoidable environmental 37 effects identified in the EIR that cannot be reduced to a less than significant level, the Lead 38 Agency must state in writing the specific reasons to support the project approval based on a 39 balancing of project benefits against impacts remaining significant as identified in the Final EIR 40 and/or other information in the record. This is formally known as a "Statement of Overriding 41 Considerations" and is made pursuant to CEQA Guidelines, Section 15093. The findings 42 required for a statement of overriding considerations are made in addition to the findings 43 required by CEQA Guidelines section 15091. 44 45 Before approving a project with significant and unavoidable environmental impacts, a Lead 46 Agency is required to first certify the EIR and adopt a statement of overriding considerations. If Costco Wholesale Warehouse Project Rezoning to Amend Airport Industrial Park Land Use Map Eastside,south end of Airport Park Boulevard APNs 180-110-08,09,10 and 180-080-57,58,59,62,63,64,65,66,and 67 File Nos.:11-01-REZ-SDP-CC-PC/11-16-EIR-CC 16 1 findings of overriding consideration are not adopted by the Lead Agency in those instances 2 where unavoidable project-related environmental effects identified in the EIR would remain 3 significant, the Lead Agency cannot approve the proposed project. 4 5 Staff requests Planning Commission provide direction on the Statement of Overriding 6 considerations by identifying potential benefits of the Project. Should the Planning Commission 7 be in a position to identify benefits of the Project that would outweigh the significant and 8 unavoidable impacts identified in the EIR, staff will prepare the required finding for City Council 9 consideration at the December 4, 2013 public hearing on the proposed Rezoning. 10 11 Below is a list and description of the potential benefits of the Project identified by staff. 12 13 ■ Fiscal Benefits. A fiscal impact analysis (FIA) was prepared for the Project (see 14 attachment 4). The FIA identifies the potential fiscal benefits to the City of Ukiah general 15 fund that would result from the Project. Based on the FIA, the Project is estimated to 16 result in an increase to the City's general fund of$471,194 to $709,149. In addition, 17 Measure S sales tax proceeds are estimated to range from $198,051 to $308,856. 18 Combined, the Project is estimated to result in a net fiscal benefit to the City of$611,798 19 to $960,557 (see FIA, page 3, Exhibit 1). 20 21 The FIA also identified fiscal benefits of the Project for Mendocino County and a variety 22 of special districts (see attachment 4, pages 10, 12-13). 23 24 ■ Increased Area Employment: The Costco store would employ between 175 to 200 25 people, with most of the employees expected to be hired from the local community. The 26 split between full-time and part-time employees would be 50-50. 27 28 ■ Wages and Benefits: Information provided by the applicant provides a sampling of 29 wages: Service Assistant $11.50 - $20.30 per hour; Service Clerk $12.00 - $22.00 per 3o hour; and Meat Cutters $12.00 - $23.50 per hour. Costco also provides benefits, 31 including medical, dental, vision, pharmacy, mental health, life insurance, disability, long- 32 term care, employee assistance program, flexible spending accounts, employee stock 33 purchase program, 11 paid holidays, college student retention program, and 401(k). 34 Part-time employees working more than 20 hours per week receive core medical, dental, 35 and vacation benefits after 6 months and are guaranteed 24 hours per week. 36 37 ■ Construction Employment: At least some of the companies working on the 38 construction of the Project would be from the local area which would result in a 39 temporary increase in construction employment in the area. Non-local construction 40 employment would benefit the City through an increase in lodging, dining, and shopping 41 by out of area construction employees. 42 43 ■ Redirection of Vehicle Trips: The Ukiah Costco has the potential to redirect trips to 44 the Ukiah store that are currently being made by local members to the Costco stores in 45 Santa Rosa and Rohnert Park. In 2012, Costco had 18,228 members with Ukiah Costco Wholesale Warehouse Project Rezoning to Amend Airport Industrial Park Land Use Map Eastside,south end of Airport Park Boulevard APNs 180-110-08,09,10 and 180-080-57,58,59,62,63,64,65,66,and 67 File Nos.:11-01-REZ-SDP-CC-PC/11-16-EIR-CC 17 1 addresses. These members made 201,803 trips to the Santa Rosa and Rohnert Park 2 Costco stores in 2012. 3 4 ■ City Objectives: The Project is also consistent with the City objectives identified in the 5 DEIR (page 2-5), including: locating regional retail development within existing 6 commercial areas of the City; enhancing the retail opportunities within the City; further 7 developing Airport Industrial Park in accordance with the general plan; encouraging 8 urban design that enhances U.S. 101; reducing vehicle trips to retail centers on Sonoma 9 County to reduce regional air pollution and greenhouse gas emissions; encouraging 10 development that generates revenue to pay for the City services received by the 11 development; and increasing job opportunities in the City. 12 13 In addition to the benefits above identified by staff, the applicant has prepared a list of the 14 benefits associated with the Project (see attachment 3). 15 16 PUBLIC NOTICE AND COMMENT 17 18 The notice provided for this public hearing was a combined notice for the public hearing for the 19 FEIR and the public hearing for the recommendation to the City Council on the rezoning. In 20 order to provide as much advance notice as possible of the tentative City Council public hearing 21 date, the public notice also included notice that the City Council would hold a public hearing on 22 the certification of the EIR and introduction of an ordinance for the rezoning on December 4, 23 2013 if Planning Commission recommended certification of the EIR and approval of the 24 rezoning at the November 21, 2013 meeting. 25 26 Notice of this public hearing was provided in the following manner: 27 28 ■ published in the Ukiah Daily Journal on November 3, 2013; 29 ■ posted on the subject parcel on October 31, 2013; 30 ■ mailed to all property owners within 300 feet of the subject parcel on October 31, 2013; 31 ■ mailed to all property owners within Airport Industrial Park Planned Development on 32 October 31, 2013; 33 ■ mailed to all tenants on parcels contiguous to the subject parcel on October 31, 2013; 34 ■ mailed and/or emailed to all persons on the Costco Project interested parties list on 35 October 31, 2013; and 36 ■ posted on the City's website on October 31, 2013. 37 38 Comments received after the close of the comment period on the DEIR and during the 39 preparation of the FEIR are included as attachment 5A. Comments received in response to the 40 notice for this public hearing are included as attachment 5B. No new impacts were identified or 41 issues raised in these comments. 42 43 CONCLUSION 44 45 The purpose of this public hearing is to: 46 Costco Wholesale Warehouse Project Rezoning to Amend Airport Industrial Park Land Use Map Eastside,south end of Airport Park Boulevard APNs 180-110-08,09,10 and 180-080-57,58,59,62,63,64,65,66,and 67 File Nos.:11-01-REZ-SDP-CC-PC/11-16-EIR-CC 18 1 1. take public and Planning Commission comment on the rezoning to allow the amendment 2 of the Airport Industrial Park Planned Development Land Use Map; 3 4 2. make a recommendation to the City Council on the rezoning (see attachment2); and 5 6 3. Provide direction of the benefits of the Project as required for a Statement of Overriding 7 Considerations (see attachment 1; please note: these draft findings are still being 8 reviewed by staff, including the city attorney). 9 10 Should the Planning Commission vote to recommend 1) the City Council certify the Costco 11 Wholesale Project EIR (item 9A of this agenda); and 2) approve the rezoning at this meeting, 12 the City Council would hold a public hearing on December 4, 2013 to consider the certification 13 of the EIR and rezoning. 14 15 16 ATTACHMENTS 17 18 1. Draft City Council CEQA Findings for EIR and Statement of Overriding Considerations 19 (these draft findings are still being reviewed by staff, including the city attorney) 20 2. Draft Airport Industrial Park Planned Development Ordinance (Land Use Map Amended) 21 3A. Applicant's Project Description 22 3B. Applicant's Benefits Statement 23 4. Fiscal Impact Analysis dated July 2013 24 5A. Public Comment during FEIR Preparation 25 5B. Public Comment in Response to Public Notice 26 6. Project Plans date stamped November 12, 2013 Costco Wholesale Warehouse Project Rezoning to Amend Airport Industrial Park Land Use Map Eastside,south end of Airport Park Boulevard APNs 180-110-08,09,10 and 180-080-57,58,59,62,63,64,65,66,and 67 File Nos.:11-01-REZ-SDP-CC-PC/11-16-EIR-CC 19 1 ATTACHMENT 1 2 3 RESOLUTION NO. 4 5 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF UKIAH 6 MAKING FINDINGS PURSUANT TO PUBLIC RESOURCES 7 CODE (��PRC'7 SECTION 21081 AND CALIFORNIA 8 ENVIRONMENTAL QUALITY ACT ("CEQA") GUIDELINES 9 SECTION 15091 AND A STATEMENT OF OVERRIDING 10 CONSIDERATION IN ACCORDANCE WITH PRC §21081(b) 11 AND GUIDELINES §15093 IN CONNECTION WITH THE 12 DECISION TO CERTIFY THE COSTCO WHOLESALE PROJECT 13 ENVIRONMENTAL IMPACT REPORT AND APPROVE THE 14 COSTCO WAREHOUSE STORE AND FUELING STATION 15 PRO)ECT 16 17 WHEREAS: 18 1. The City Council has certified as adequate and complete an Environmental Impact Report 19 ("EIR")for the Costco Wholesale Project. The EIR consists of a Draft Environmental Impact Report, 2 0 dated January 2013, ("DEIR"), and a Final Environmental Impact Report, including a response to 21 comments, dated November 2013, (��FEIR'�; and a Mitigation Monitoring and Reporting Program; 22 and 23 2. The Project includes a Rezoning to an amend to the Airport Industrial Park Planned 2 4 Development to change the Land Use Designation of the Costco Project site to Retail Commercial 25 from Industrial/Auto Commercial and Light Industrial/Mixed Use and a Site Development Permit in 2 6 order to allow the construction of a 148,000 square foot membership-based retail store and 20-pump 2 7 fueling station on a 15.33 acre site on the east side of Airport Park Boulevard between Ken Fowler 2 8 Auto Center and the southern terminus of Airport Park Boulevard; and 2 9 3. The EIR has identified significant environmental impacts of the Project; and 30 4. The EIR has determined that all of the project specific adverse environmental impacts 31 cannot be mitigated to acceptable levels; and 32 5. The Final EIR has found that Air Quality, Transportation and Traffic, and Global Climate 33 Change impacts cannot be mitigated to a level considered less than significant; and 3 4 6. As stated below, the City Council has made the findings and the statement of overriding 35 considerations required, where, as here, a project has an adverse environmental impact that cannot 3 6 be mitigated to a level of insignificance; and Costco Wholesale Project Environmental Impact Report City Council Resolution 1 December 4,2013 1 7. The Project Proponent hereby undertakes a legally binding commitment to comply with 2 the mitigation measures under the Project Proponent's control, which are incorporated into the 3 Project and/or included as conditions of project approval; and 4 8. The City Council has determined to approve the Project; and 5 9. The City Council has based its decision on the record which includes those items identified 6 in Public Resources Code Section 21167.6(e), including, but not limited to, the EIR, including the 7 appendices to the EIR and the stafF reports; and 8 10. The record of proceedings upon which this decision is based, including the Costco 9 Warehouse EIR and Costco Warehouse and Fueling Station project file, is maintained in the ofFice of 10 the Planning and Community Development Department, Civic Center, 300 Seminary Avenue, Ukiah, 11 CA 95482, as the custodians of the record, and is available for public inspection upon request of the 12 Director of Planning and Community Development or his designee; and 13 11. PRC section 21081 and CEQA Guideline section 15091 provide that the City shall not 14 approve or carry out a project for which an EIR has been completed which identifies one or more 15 significant environmental impacts, unless it makes specified findings; and 16 12. PRC section 21081(b) and CEQA Guideline section 15093 require a Statement of 17 Overriding Considerations for a project that will have any unmitigated adverse environmental 18 impacts; 19 2 0 NOW,THEREFORE, BE IT RESOLVED that the City Council of the City of Ukiah finds as follows. 21 1. The EIR was prepared and made available for public review and comment in full 2 2 compliance with the procedures set forth in CEQA and the CEQA Guidelines. 2 3 2. The EIR was considered by the Planning Commission at a public meeting on November 21, 2 4 2013 and the Planning Commission voted to recommend the City Council certify the EIR; 25 and 2 6 The EIR was considered by the City Council at a public meeting on December 4, 2013. 2 7 3. The City Council has considered all documents submitted during the public comment 2 8 period for the EIR and all testimony presented during its meetings as well as the EIR, the StafF 2 9 Reports, dated November 21, 2013 December 4, 2013, and the Costco Warehouse and Fueling 30 Station project files. The StafF Reports are incorporated herein by reference. The City Council has 31 independently reviewed and analyzed this resolution and the EIR. Costco Wholesale Project Environmental Impact Report City Council Resolution 2 December 4,2013 1 4. The Project is described in the EIR, including the DEIR at pp. 2-1 to 2-14,and FEIR pp. 4-1 2 to 4-5. This description is incorporated herein by reference. 3 5. The EIR evaluated the impacts of the Project itself as well as its impacts in combination 4 with impacts from past, present and probable future projects. Those impacts, both individual and 5 cumulative, along with recommended mitigation measures and suggested conditions, are 6 summarized in Table ES-1: Summary of Impacts and Mitigation Measures, FEIR pp. ES-3 to ES-14. 7 6. Measures designed to avoid or substantially lessen the significant environmental efFects of 8 the Project as identified in the EIR are set forth in the Mitigation Monitoring and Reporting Plan 9 ("Plan"),attached hereto as Exhibit A and incorporated herein by reference. The measures constitute 10 binding commitments of the Project Proponent, if the Project is approved by responsible agencies 11 upon acceptable conditions and undertaken by the Project Proponent and those measures shall be 12 incorporated into the Project and monitored in accordance with the Plan. 13 14 7. Aesthetics. 15 Project Specific Impacts(Liaht and Glare�: The EIR concluded implementation of the Project 16 may create a new source of substantial light or glare which could adversely affect daytime or 17 nighttime views of the area. The EIR identified mitigation measures that would reduce this impact to 18 a less than significant level. The mitigation measures include: locating, aiming, or shielding light 19 fi�ures to minimize light trespass over property lines; use of full cut-off and night-time friendly 2 0 fi�ures; preparation of a photometric plan that complies with specific quantified light levels; and 21 turning ofF all or 50% of parking lot lighting one hour after store closure. 2 2 The Project Proponent commits to these mitigation measures. The City Council finds that these 2 3 mitigation measures will avoid or reduce to insignificance the adverse environmental effect of 2 4 potential light and glare. 25 2 6 8. Geology and Soils. 2 7 Project Specific Impacts(Seismic Ground ShakinqZ The EIR concludes that the Project could 2 8 expose people to injury or structures to damage from potential rupture of a known earthquake fault, 2 9 strong ground shaking, seismic-related ground failure, or landslides. The EIR includes mitigation 3 0 measures that would reduce the seismic ground-shaking impacts to a less than significant level. The 31 mitigation measures include: preparation of a site-specific design level geotechnical report prepared Costco Wholesale Project Environmental Impact Report City Council Resolution 3 December 4,2013 1 by a registered geotechnical engineer to be submitted to the Building Services Division as part of the 2 building permit submittal required for construction of the Project; incorporation of the 3 recommendations included in the geotechnical report into the foundation design, earthwork, and site 4 preparation Project plans; and that the Project structural engineer review site specific investigations, 5 provide any additional mitigations necessary to meet Building Code requirements, and incorporation 6 of all applicable mitigation measures from the investigation into the structural design and ensure that 7 all structural plans meet current Building Code requirements; City review of all Project plans and other 8 relevant construction permits for compliance with the applicable geotechnical investigation and Code 9 requirements. 10 Project Specific Impacts (Liquefaction and Earthquake Induced SettlementZ The EIR 11 concludes the Project could expose people to injury or structures to damage from potential 12 liquefaction and earthquake induced settlement. The EIR includes mitigation measures that would 13 reduce the liquefaction and earthquake induced settlement impacts to a less than significant level. 14 The mitigation measures include: submittal of a site-specific, design level geotechnical investigation 15 prepared by a registered geotechnical engineer that complies with all state and local code 16 requirements, includes site specific mitigations for mitigation of liquefiable soils; identified mitigations 17 reviewed for compliance with CGS Geology Guidelines related to protection of public safety from 18 liquefaction; incorporation of all mitigations in the site specific mitigations into the Project plans for 19 foundation design, earthwork and site preparation; review of the site specific recommendations by 2 0 the Project structural engineer and the inclusion of recommendations form the Project structural 21 engineer into the structural design plans and compliance of all structural plans with current Building 2 2 Code requirements; registered City geotechnical engineer or third party engineer retained to review 2 3 the geotechnical report and site-specific geotechnical investigation, approve the final report, and 2 4 require compliance with all geotechnical mitigations; and City review of Project plans for grading 2 5 foundations, structural, infrastructure, and all other relevant construction permits to ensure 2 6 compliance with the geotechnical investigation and Code requirements. 2 7 Project Specific Impacts(Fill Soils): The EIR concluded that the Project could be located on fill 2 8 soils that are potentially unstable, or that could become unstable as a result of the Project, and 2 9 potentially result in on- or off-site landslide, lateral spreading, subsidence, liquefaction or collapse. 30 The EIR includes mitigation measures that would reduce this impact to a less than significant level. 31 The mitigations include all of the mitigations for seismic ground-shaking, liquefaction, and Costco Wholesale Project Environmental Impact Report City Council Resolution L� December 4,2013 1 earthquake induced settlement identified above. 2 The Project Proponent commits to these mitigation measures. The City Council finds that these 3 mitigation measures will avoid or reduce to insignificance the adverse environmental effect on 4 geology and soils. 5 6 9. Hazards and Hazardous Materials. 7 Project Specific Impacts: The EIR concluded that during construction,the Project could create 8 a hazard to the public or environment through upset or accident conditions involving the use release 9 of hazardous materials or the release of hazardous wastes to the environment resulting from 10 contaminated soil and/or groundwater. Although the available studies suggest no contaminated soil 11 and/or groundwater would be found on site, mitigation has been included in the unlikely event 12 contamination in encountered. The mitigation measures would reduce this impact to a less than 13 significant level. The mitigation measure includes: the halting of work if contaminated soil and/or 14 groundwater is suspected or discovered during Project construction activities; identification of the 15 type and e�ent of the contamination in coordination with overseeing authorities; development of an 16 appropriate method to remediate the contamination; and determination of the appropriate disposal 17 method. 18 The Project Proponent commits to these mitigation measures. The City Council finds that this 19 mitigation measure will avoid or reduce to insignificance the adverse environmental effect on hazard 2 0 and hazardous materials. 21 2 2 10. Hydrology and Water Quality. 23 Project Specific Impacts (Dewatering and Discharge): The EIR concluded that subsurface 2 4 excavation during Project construction could require dewatering which may result in a discharge that 25 could adversely affect water quality. The EIR includes mitigation measures that would reduce this 2 6 impact to a less than significant level. The mitigation measures include: coordination with the City 2 7 regarding dewatering activities and compliance with provisions of the permit; applicant Submittal of 2 8 a Report of Wastewater Discharge and Application for NPDES Permit along with a feasibility study for 2 9 the reuse of the groundwater to RWQCB; and discharge flows only upon receipt of the Discharge 3 0 Authorization Letter from the RWQCB (mitigation measure 3.6.2). 31 Project Specific Impacts (Impervious Surfaces and Runoff�: The EIR concluded that the Costco Wholesale Project Environmental Impact Report City Council Resolution �j December 4,2013 1 installation of new impervious surfaces associated with the Costco building and parking lot would 2 increase the impervious surFaces on the site which could decrease stormwater infiltration and 3 increase stormwater flows, causing downstream flooding, erosion, or sedimentation. The EIR 4 includes mitigation measures that would reduce this impact to a level considered less than significant. 5 These mitigations include: preparation and submittal of a Final Drainage Plan by the Applicant to the 6 City Engineer and North Coast Regional Water Quality Control Board for the final design/plan of the 7 Project that includes the proposed storm drainage system, vegetated swales, and water quality 8 features; storm water system designed, implemented, and maintained such that there would be no 9 net increase in Project condition downstream runoff; Final Drainage Plan based on modeled runofF 10 volumes and flow rates specific to the with-Project conditions; design and implementation by the 11 Applicant of volume- and/or flow- based Treatment Control Best Management Practices (BMPs) as 12 defined in attachment 4 of the State Water Resources Control Board small municipal separate storm 13 sewer systems(MS4s) General Permit; and submittal of design drawings and any related documents 14 or specifications to the City of Ukiah and North Coast Regional Water Quality Control Board prior to 15 implementation (mitigation measure 3.6.4). 16 Cumulative Impacts: The EIR concludes implementation of the Project, in conjunction with 17 other foreseeable development in the City, could result in cumulative hydrology and water quality 18 impacts. The EIR includes mitigation measures that would reduce this impact to a level that is 19 considered less than significant. The mitigations include all of the mitigations for impervious surfaces 2 0 and runoff as described above (mitigation measure 3.6.4). 21 The Project Proponent commits to these mitigation measures. The City Council finds that these 22 mitigation measures will avoid or reduce to insignificance the adverse environmental effect on 2 3 hydrology and water quality. 24 2 5 11. Biological Resources. 2 6 Project Specific Impacts �Special Status Species�: The EIR concluded construction-related 2 7 activities could afFect special status species (nesting birds). The EIR includes mitigation measures 2 8 that would reduce this impact to a level considered less than significant. The mitigation measures 2 9 include: preconstruction survey by a qualified biologist of all potential habitats within 30 days of the 3 0 start of grading or other construction-related activities if construction will occur during bird nesting 31 season (February 15 through August 31); in the event an active nest is found, a no-work buffer zone Costco Wholesale Project Environmental Impact Report City Council Resolution 6 December 4,2013 1 is required or as required by the Department of Fish and Game; and no mitigation is required if the 2 preconstruction survey indicates nests are inactive or potential habitat is unoccupied (mitigation 3 measure 3.12.1). 4 The Project Proponent commits to these mitigation measures. The City Council finds that these 5 mitigation measures will avoid or reduce to insignificance the adverse environmental effects on 6 biological resources. 7 8 12. Cultural Resources. 9 Project Specific Impacts(Archeological and Paleontological Resources�: The EIR determined 10 that ground disturbing activities associated with implementation of the Project could result in a 11 substantial adverse change to previously unknown archeological or paleontological resources and 12 identified mitigations to reduce this impact to a level considered less than significant. These 13 mitigation measures include: ceasing activity in the vicinity of the find until the find is evaluated by a 14 qualified archeologist and a Native American representative; notifying the City of Ukiah in the event 15 the find may be significant; development of a treatment plan for resources determined to be 16 significant; and consultation with Native American representatives in determining the appropriate 17 treatment for prehistoric or Native American cultural resources (mitigation measure 3.14.2). 18 Project Specific Impacts (Discovery of Human RemainsZ The EIR also determined that 19 ground disturbing construction activities associated with implementation of the Project could result in 2 0 damage to previously unknown human remains and identified mitigation measures to reduce this 21 impact to a level considered less than significant. These mitigation measures include: compliance 22 with Health and Safety Code Section 7050.5 which requires no further disturbance until the County 23 Coroner has made the necessary findings as to origin and disposition pursuant to PRC Section 2 4 5097.98.; coroner notification of the Native American Heritage Commission (NAHC) in the event the 25 remains are determined to be of Native American descent; and NAHC determination of the Most 2 6 Likely Descendent, who will assist in determining disposition of the remains. 2 7 The Project Proponent commits to these mitigation measures. The City Council finds that these 2 8 mitigation measures will avoid or reduce to insignificance the adverse environmental effects on 2 9 cultural resources. 30 31 Costco Wholesale Project Environmental Impact Report City Council Resolution 7 December 4,2013 1 13. Transportation and TrafFc (Public Transit, Pedestrian, and Bicycle Facilities). 2 Project Specific Impacts: The EIR determined that implementation of the Project would 3 conflict with adopted policies, plans, or programs regarding public transit, pedestrian, or bicycle 4 facilities or otherwise decrease the performance or safety of such facilities. The EIR identified 5 mitigation measures that would reduce this impact to a less than significant level. These mitigation 6 measures include: providing a location for a bus shelter on the Project site and construction of a 7 concrete pad for a bus shelter; construction of sidewalks as shown on the Project plans; installation 8 of high visibility crosswalks across driveway entrances to the site and installation of ADA compliant 9 curb ramps; installation of pedestrian connections from the Project frontage and main parking area to 10 the store entrance; installation of a Class III bike route on Airport Park Boulevard; and installation of 11 bike parking as required by Airport Industrial Park Planned Development Ordinance 1098. 12 The Project Proponent commits to these mitigation measures. The City Council finds that these 13 mitigation measures will avoid or reduce to insignificance the adverse environmental efFects on Public 14 Transit, Pedestrian, and Bicycle Facilities. 15 16 14. Transportation and TrafFc (TrafFc Volume and Queuing). 17 Project Specific Impacts (Existing Plus Project ConditionsZ The EIR concludes the Project 18 would increase traffic volumes on area roadways under Existing Plus Project Conditions. The analysis 19 in the EIR indicates the level of service (LOS) at the intersection of Airport Park Boulevard/Talmage 2 0 Road would not meet the acceptable LOS established by the general plan. General Plan Circulation 21 and Transportation implementation measure CT-16.4(e) establishes the acceptable LOS for 22 signalized intersection and four-way stops as LOS D. Under Existing Plus Project Conditions, the 23 intersection of Airport Park Boulevard/Talmage Road would operate at LOS E. In addition, queuing 2 4 would exceed available storage in two locations: 1)westbound Talmage Road/Airport Park Boulevard 2 5 left turn; and 2) southbound Talmage Road/US 101 Ramp right turn. The EIR traffic study indicates 2 6 that under existing conditions (without the Project) both intersections also have queues that exceed 2 7 available storage. 2 8 The EIR includes mitigation measures that would reduce this impact to a level considered less 2 9 than significant. The mitigation includes the construction of Talmage Road Interchange 3 0 improvements with the provision of two left-turn lanes on the westbound Talmage Road approach to 31 Airport Park Boulevard (mitigation measure 3.10.1). The City of Ukiah is pursuing the Talmage Road Costco Wholesale Project Environmental Impact Report City Council Resolution 8 December 4,2013 1 Interchange Improvements as a separate City-sponsored project. As of the preparation of the EIR, 2 funding sources for the improvements have been identified, but funding has not yet been secured. 3 Since funding has not been secured as of the preparation of the EIR, the impact is considered 4 significant and unavoidable. 5 Project Specific Impacts (Near-Term Plus ProjectZ The EIR concludes the Project would 6 increase traffic volumes on area roadways under Near-Term (Baseline) Plus Project Conditions. The 7 analysis in the EIR indicates the level of service (LOS) at two intersections would not meet the 8 acceptable LOS established by the general plan. General Plan Circulation and Transportation 9 implementation measure CT-16.4(e) establishes the acceptable LOS as LOS D or better. Under 10 Near-Term Plus Project Conditions, the intersection of Airport Park Boulevard/Talmage Road would 11 operate at LOS E, and the intersection of Talmage Road/US 101 Southbound Off-Ramp would 12 operate at LOS F. In addition, queuing would exceed available storage in two locations: 1) 13 westbound Talmage Road/Airport Park Boulevard left turn; and 2) southbound Talmage Road/US 14 101 Ramp right turn. The EIR traffic study indicates that under near-term conditions (without the 15 Project), both intersections also have queues that exceed available storage. 16 The EIR includes mitigation measures that would reduce this impact to a level considered less 17 than significant (mitigation measure 3.10.3 requires implementation of mitigation measure 3.10.1). 18 The mitigation includes the construction of Talmage Road Interchange improvements with the 19 provision of two left-turn lanes on the westbound Talmage Road approach to Airport Park Boulevard. 2 0 The City of Ukiah is pursuing the Talmage Road Interchange Improvements as a separate 21 City-sponsored project. As of the preparation of the EIR,funding sources for the improvements have 2 2 been identified, but funding has not yet been secured. Since funding has not been secured as of the 2 3 preparation of the EIR, the impact is considered significant and unavoidable. 2 4 Cumulative Impacts (Future 2030 Plus Project Level of ServiceZ The EIR concludes the 2 5 Project would increase traffic volumes on area roadways under Future(2030) Plus Project Conditions. 2 6 The analysis in the EIR indicates the level of service (LOS) at three intersections would not meet the 2 7 acceptable LOS established by the general plan. General Plan Circulation and Transportation 2 8 implementation measure CT-16.4(e) establishes the acceptable LOS as LOS D or better. Under 2 9 Future (2030) Plus Project Conditions, the intersection of Airport Park Boulevard/Talmage Road 30 would operate at LOS F; the intersection of Talmage Road/US 101 Southbound OfF-Ramp would 31 operate at LOS E; and the intersection of South State Street would operate at LOS E. Costco Wholesale Project Environmental Impact Report City Council Resolution 9 December 4,2013 1 The EIR includes mitigation measures that would reduce this impact to a level considered less 2 than significant (mitigation measure 3.10.4). The mitigation measures include: installation of a 3 left-turn lane on the eastbound approach of South State Street/Hasting Avenue and the construction 4 of Talmage Road Interchange improvements with the provision of two left-turn lanes on the 5 westbound Talmage Road approach to Airport Park Boulevard (mitigation measure 3.10.1). The City 6 of Ukiah is pursuing the Talmage Road Interchange Improvements as a separate City-sponsored 7 project. As of the preparation of the EIR,funding sources for the improvements have been identified, 8 but funding has not yet been secured. Since funding has not been secured as of the preparation of 9 the EIR, the impact is considered significant and unavoidable. 10 Cumulative Impacts(Future 2030 Queuin�: The EIR concludes the Project would contribute 11 to inadequate queuing storage under Future (2030) Plus Project Conditions. The analysis in the EIR 12 indicates queuing storage would exceed maximum queues at westbound Airport Park 13 Boulevard/Talmage Road left turn and Talmage Road/US 101 Southbound Off-Ramp right turn. The 14 EIR traffic study indicates that under Future conditions (without the Project), both intersections also 15 have queues that exceed available storage. 16 The EIR includes mitigation measures that would reduce this impact to a level considered less 17 than significant (implementation of mitigation measure 3.10.1). The mitigation includes the 18 construction of Talmage Road Interchange improvements with the provision of two left-turn lanes on 19 the westbound Talmage Road approach to Airport Park Boulevard. The City of Ukiah is pursuing the 2 0 Talmage Road Interchange Improvements as a separate City-sponsored project. As of the 21 preparation of the EIR, funding sources for the improvements have been identified, but funding has 22 not yet been secured. Since funding has not been secured as of the preparation of the EIR, the 23 impact is considered significant and unavoidable. 24 2 5 15. Air Quality. 2 6 Project Specific Impacts (Operational Emissions�: The EIR concluded that operation of the 2 7 Project would generate significant emissions of criteria air pollutants that could contribute to existing 2 8 nonattainment conditions for nitrous oxide (NOX), PM 10, and PM 2.5 and degrade air quality. The 2 9 EIR analysis indicates that vehicle trips are the primary source of these emissions. The EIR includes 30 mitigation measures that would reduce the level of this impact. The mitigation measures include: 31 incorporating building and site design features that achieve a building energy efficiency rating greater Costco Wholesale Project Environmental Impact Report City Council Resolution 1 Q December 4,2013 1 than the Title 24 requirement; incorporating sustainability features into the project, including the use 2 of locally extracted building materials where feasible, pre-manufactured building components to 3 reduce construction waste, pre-manufactured wall panels with insulation designed to conserve 4 energy by increasing R-value and solar reflectivity, reflective roof material that complies with 5 requirements for USEPA's Energy Star energy efficiency program, skylights as part of a daylight 6 harvesting system, tree planting to reduce summer heat gain in the parking lot, plant palette that 7 includes a substantial amount of drought tolerant species, and an irrigation system that minimizes 8 water use and ensures water goes directly to the intended planting area; implementation of 9 measures to reduce motor vehicle trips and operational emissions, including promoting the use of 10 alterative fueled vehicles and equipment and providing incentives for employees to use alternative 11 transportation, such as carpool/vanpool, transit, bicycling, or walking; and use of low VOC coatings. 12 The Project Proponent commits to these mitigation measures. 13 The EIR concludes that the implementation of these mitigation measures would not reduce the 14 impact to a less than significant level and the impact would be significant and unavoidable. 15 Cumulative Impact (Operational EmissionsZ The EIR concluded that construction and 16 operation of the Project would result in cumulatively considerable increases in criteria pollutant 17 emissions. The EIR identifies the same mitigation measures for cumulative emission impacts as for 18 operational emissions impacts (implementation of Air Quality mitigation measures 3.2.2a through 19 3.2.2c). The EIR concludes that implementation of the mitigation measures would reduce the 2 0 impacts, but would not reduce the impacts to a less than significant level; therefore, this impact 21 would be significant and unavoidable. 22 2 3 16. Global Climate Change. 2 4 Project Specific Impacts (Operational EmissionsZ The EIR concludes the Project could 2 5 generate greenhouse gas emissions that may have a significant impact on the environment. The EIR 2 6 includes mitigation measures that would reduce this impact(implementation of Air Quality mitigation 2 7 measures 3.2.2a through 3.2.2c). The mitigation measures include: incorporating building and site 2 8 design features that achieve a building energy efficiency rating greater than the Title 24 requirement; 2 9 incorporating sustainability features into the project, including the use of locally extracted building 30 materials where feasible, pre-manufactured building components to reduce construction waste, 31 pre-manufactured wall panels with insulation designed to conserve energy by increasing R-value and Costco Wholesale Project Environmental Impact Report City Council Resolution 1 1 December 4,2013 1 solar reflectivity, reflective roof material that complies with requirements for USEPA's Energy Star 2 energy efficiency program, skylights as part of a daylight harvesting system,tree planting to reduce 3 summer heat gain in the parking lot, plant palette that includes a substantial amount of drought 4 tolerant species, and an irrigation system that minimizes water use and ensures water goes directly 5 to the intended planting area; implementation of ineasures to reduce motor vehicle trips and 6 operational emissions, including promoting the use of alterative fueled vehicles and equipment and 7 providing incentives for employees to use alternative transportation,such as carpool/vanpool,transit, 8 bicycling,or walking; and use of low VOC coatings.These are the same mitigation measures included 9 for Air Quality operational emissions. The EIR concludes that the implementation of these mitigation 10 measures would not reduce the impact to a less than significant level;therefore,this impact would be 11 significant and unavoidable. 12 The Project Proponent commits to these mitigation measures. 13 14 FINDINGS REGARDING UNMITIGATED ADVERSE IMPACT 15 The EIR has identified the following seven significant and unavoidable that cannot be 16 successfully mitigated or avoided with implementation of the Project. 17 18 1. Transportation and Traffic Impact 3.10.1: Implementation of the Project would increase traffic 19 volumes on area roadways (Final EIR, p. ES-11). 2 0 2. Transportation and Traffic Impact 3.10.3: Implementation of the Project would increase trafFic 21 volumes on area roadways Near-Term conditions (Final EIR, p. ES-12). 22 3. Transportation and Traffic Impact 3.10.4: Implementation of Project would increase traffic 23 volumes on area roadways under Future (2030) conditions (Final EIR, p. ES-12). 2 4 4. Transportation and Traffic Impact 3.10.5: Under Future plus Project conditions,traffic associated 25 with the Project would contribute to inadequate queuing storage at Talmage Road/Airport Park 2 6 Boulevard and Talmage Road/US 101 Southbound OfF-ramp (Final EIR, p. ES-12). 2 7 The EIR identifies improvements to the intersection of the Highway 101 southbound 2 8 intersection with Talmage Road that would mitigate the impacts identified above. These 2 9 improvements are currently being undertaken by the City of Ukiah as a separate 30 City-sponsored ('�Talmage Interchange Improvement Project'�. The purpose of this Costco Wholesale Project Environmental Impact Report City Council Resolution 12 December 4,2013 1 Project is to remedy the existing and future queuing conditions described above and to 2 make traffic and circulation to serve future build-out of the Airport Industrial Park, as well 3 as the future circulation needs in the immediate area and to accommodate population 4 growth. Improvements within Caltrans right-of-way will require Caltrans approval of 5 design plans and an encroachment permit. The City has been in consultation with Caltrans 6 throughout the design phase of the Talmage Interchange Improvements and Caltrans 7 agrees that improvements to the interchange are needed. 8 9 Although the City has identified potential funding sources for these improvements, 10 including ... 11 As of the consideration of the EIR and proposed Project, funding for these improvements 12 has not been secured. Without funding for the improvements necessary to mitigate the 13 impacts identified in the EIR, the impacts remain significant and unavoidable. 14 15 5. Air Quality Impact 3.2.2: Operation of the Project would generate significant emissions of 16 criteria air pollutants that could contribute to existing nonattainment conditions and degrade 17 air quality (Final EIR, p. ES-3). 18 6. Air Quality Impact 3.2.5: Construction and operation of the Project would result in 19 cumulatively considerable increases in criteria pollutant emissions (Final EIR, p. ES-5). 2 0 7. Global Climate Change Impact 3.11.1: The Project could generate GHG emissions that may 21 have a significant impact on the environment or conflict with an applicable plan, policy or 22 regulation adopted to reduce GHG emissions (Final EIR, p. ES-12). 23 For the following reasons, the City Council finds that specific economic, legal, social, 2 4 technological or other considerations make infeasible the project alternatives identified in the EIR. 25 2 6 The Project Objectives. 2 7 The primary City objectives of the proposed Project, as explained in the DEIR, p. 2-5, are to: 2 8 locate regional retail development within the existing commercial areas; locate retail development 2 9 within existing commercial areas of the City; enhance the retail opportunities within the City of Ukiah; 3 0 fulfill the City's role as a regional retail center and reduce the number of vehicle trips to retail centers Costco Wholesale Project Environmental Impact Report City Council Resolution 13 December 4,2013 1 in Sonoma County and thereby reduce regional air pollution and greenhouse gas emissions; further 2 develop the Airport Industrial Park in accordance with the City's general plan and Ordinance 1098; 3 encourage development that generates enough revenue for the City to pay for the City services 4 received by the development; and encourage urban design that enhances the US 101 corridor. 5 The primary Project Proponents objectives,as explained in the DEIR, p. 2.5,are to: provide a 6 Costco facility on a site with good access in a central location within the trade area; provide a Costco 7 facility in a location that is convenient to employees to travel to work; increase the number of 8 employees and contribute to a jobs/housing balance; provide a Costco facility to better serve Costco 9 members within the greater Ukiah area; and enhance the area with an economically viable 10 development which is architecturally designed to be sensitive to the Ukiah community and compatible 11 with Costco's needs for a new warehouse. 12 13 B. Generally, Project Alternatives are Unavailable and Infeasible. The traffic, air 14 quality and greenhouse gas emissions impacts that cannot be mitigated results from the vehicle trips 15 associated with the Project. Consideration of an alternative location or a reduced Project size would 16 not reduce the level of traffic, air quality, or greenhouse gas emissions to a less than significant. Due 17 to the nature of the Project,which sells limited numbers of goods in bulk quantities,the Project relies 18 on vehicles for the delivery of goods and customer trips. In order to reduce the air quality and 19 greenhouse gas emissions impacts to a less than significant level, the number of vehicle trips would 2 0 need to be reduced to two-percent (2%) of the number of trips estimated for the Project (see FIER, 21 pp. ). This reduction in vehicle trips would make the Project financially infeasible for the Project 2 2 Proponent. 23 C. Infeasibility of Project Alternatives Discussed in EIR. The following social, 2 4 economic, legal, technological, and other considerations make the three alternatives identified in the 2 5 EIR infeasible. The three alternatives are: 1) no project alternative; 2) alternative location; and 3) 2 6 reduced project alternative. 27 2 8 1. No Project Alternative. Under the No Project Alternative,the Project would not 2 9 be undertaken and the site would not be developed. This alternative would reduce most of the 30 impacts associated with the Project; however, this alternative would not achieve any of the Project 31 objectives (DEIR, p. 2.5). Under this alternative, there are transportation and traffic impacts under Costco Wholesale Project Environmental Impact Report City Council Resolution 14 December 4,2013 1 the following conditions: under existing conditions, the maximum queue exceeds available storage 2 for the Talmage Road/US 101 Southbound OfF-Ramp right turn; under near-term (baseline) 3 conditions, the maximum queue exceeds available storage for the Talmage Road/Airport Park 4 Boulevard westbound left turn and the storage for the Talmage Road/US 101 Southbound Off-Ramp 5 right turn; and under Future (2030) conditions, the maximum queue exceeds available storage for 6 the Talmage Road/Airport Park Boulevard westbound lefit turn and the storage for the Talmage 7 Road/US 101 Southbound OfF-Ramp right turn. 8 The no project alternative is not feasible, because it would not achieve any of the project 9 objectives and does not eliminate existing trafFic congestion problems. 10 11 2. Alternative Location. This alternative would locate the Project on the west side of 12 Airport Park Boulevard across from the currently proposed location on three separate parcels totaling 13 14.69 acres. Since the location of this alternative is similar to the proposed Project location, Urban 14 Decay, Geology and Soils, Hydrology and Water Quality, Land Use, Noise, Public Services and Utilities, 15 Cultural Resources, and Biological Resources impacts would be similar to the Proposed Project. 16 This alternative site is located in Airport Compatibility Zone B1 of the Mendocino County 17 Airport Comprehensive Land Use P/an which is more restrictive than Zone C (the zone in which the 18 proposed Project is located). The Costco store is considered an "intensive retail" use, a use 19 considered��Not Normally Acceptable"in the B1 zone. Development in this zone would be subject to 2 0 more restrictive development conditions related to the requirements of the B1 zone. Although, the 21 Project may be allowed in this location if determined to be consistent with the commercial uses 2 2 allowed and the conditions for development in the B1 zone, it may exceed the allowed development 2 3 density. If the density exceeded the density allowed in the B1, the impact would be equal or greater 2 4 than the proposed Project (DEIR, p. 5-9 and 5-10, Hazards and Hazardous Materials). 2 5 If the Project at this alternative location was found to be inconsistent with the Mendocino 2 6 CountyAirport Comprehensive Land Use Plan as discussed above, the Project would be inconsistent 2 7 with applicable plans and regulations, resulting in a potentially significant Land Use and Planning 2 8 impact which does not exist at the proposed location for the Project. 2 9 The construction and operational activities under this alternative would be similar to the 3 0 proposed Project since it is served by and would receive access from the same street network. 31 Therefore, this alternative would generate a similar number of vehicle trips as the proposed Project. Costco Wholesale Project Environmental Impact Report City Council Resolution 15 December 4,2013 1 This similar number of vehicle trips would result in similar traffic, air quality, and greenhouse gas 2 emissions impacts as the proposed Project. The traffic, air quality and greenhouse gas emissions 3 impacts would remain significant and unavoidable under this alternative (DEIR, pp. 5-8 to 5-11 and 4 FEIR, p. 4-14). 5 6 3. Reduced Project Size Alternative. This Reduced Project Size Alternative (No Fuel 7 Station)would remove the fueling station from the Project which would eliminate 492 p.m. peak hour 8 vehicle trips. The construction related impacts of this alternative would be similar to the proposed 9 Project. The elimination of 492 vehicle trips would not reduce the F�cisting plus Project, Near-Term 10 plus Project, or Future (2030) traffic impacts to a less than significant level and the impact would 11 remain significant and unavoidable under this alternative (DEIR, pp. 5-6 to 5-8, and 5-11, FEIR, p. 12 4-14). 13 The removal of the fueling station would reduce emissions from mobile and area sources by 14 eliminating 492 p.m. peak house vehicle trips and the need for fueling trucks. This reduction in 15 vehicle trips would reduce the area and mobile source emissions associated with the Project; 16 however,the impact would not be reduced to a less than significant level (FEIR, p. 3-45, response to 17 comment #3). The air quality impact and global climate change impacts, although reduced, would 18 remain significant and unavoidable under this alternative (DEIR, pp. 5-6 to 5-8, and 5-11, FEIR, p. 19 4-14). 2 0 The City Council finds that the proposed project represents the environmentally superior 21 alternative. 22 2 3 STATEMENT OF OVERRIDING CONSIDERATIONS 24 25 Weighing the benefits of the proposal against the environmental risks. Under 14 2 6 California Code of Regulations ("CCR") Section 15093, CEQA requires the City Council to balance, 2 7 as applicable,the economic, legal, social,technological, or other benefits, including region-wide or 2 8 statewide environmental benefits,of the Project against its unavoidable environmental risks,when 2 9 determining whether to approve the project. For the reasons as further stated below, the City 30 Council finds that the economic, social, technological or other benefits of the project outweigh the 31 unavoidable environmental risk arising upon construction and operation of the Project. Costco Wholesale Project Environmental Impact Report City Council Resolution 16 December 4,2013 1 For the following reasons, the City Council finds that the economic, social, technological or other 2 benefits of the Project outweigh the significant and unavoidable air quality, global climate change, 3 and traffic impacts identified in the Project EIR. 4 5 The Project Would Further Develop the Airport Industrial Park Planned 6 Development. The Airport Industrial Park was approved in 1981 with most of the land 7 area within the AIP designated for industrial uses, with office/commercial and highway 8 oriented commercial uses allowed between Talmage Road and Commerce Drive (Use 9 Permit 81-59). In 1991, the AIP was amended to expand the locations where commercial 10 uses were allowed to include part of the area south Commerce Drive between US 101 and 11 Airport Park Boulevard (Use Permit 91-4). In 1992 Ordinance 929 was approved in order to 12 allow general commercial uses in addition to Highway Oriented Commercial uses in the 13 area bounded by Talmage Road, Commerce Drive, US101, and Airport Park Boulevard 14 (Ordinance 929). 15 In 1996, Ordinance 964 was adopted to make the following changes to the land use 16 designations: Industrial/Commercial to Retail Commercial; Office/Commercial to 17 Professional Office; and Highway Oriented Commercial/General Commercial to Highway 18 Oriented Commercial. This amendment increased the amount of land that allowed 19 commercial uses and correspondingly decreased the amount of land designated for 2 0 industrial uses. In 1996, Ordinances 979 and 991 further amended the AIP to change the 21 designation of approximately 16 acres of land from Industrial to Industrial/Auto 22 Commercial. In 1999, Ordinance 1024 amended the AIP PD to change the designation of 23 the land bounded by Commerce Drive, Airport Road, Airport Park Boulevard and the 2 4 railroad tracks from Industrial to Industrial/Mixed Use. The purpose of the amendment 2 5 was to pro�ide flexibility in the types ofallowed and permifted land uses that can occur in 2 6 the designated area and to allow compatible uses that can co-exist, support one another, 2 7 and contribute to the goal of creating a self-sustaining employment and commercial center 2 8 within theAlP(Ordinance 1024). In 2000, Ordinance 1030 expanded the commercial uses 2 9 allowed in the Professional Office designation to include hotels and sit-down restaurants. 30 In 2004, Ordinance 1051 changed the land designated Industrial/Mixed Use to Light 31 Industrial/Mixed Use. The purpose of this land use designation was to provide for a Costco Wholesale Project Environmental Impact Report City Council Resolution 1 7 December 4,2013 1 compatib/e mix of/ight manufacturing activities, commercia//and uses, professional 2 o�ces, and/imited/ow-density residentia/uses(Ordinance 1051). 3 The proposed Project would amend the AIP to change the land use designation of 4 15.33 acres from Industrial/Auto Commercial and Light Manufacturing/Mixed Use to Retail 5 Commercial. This is consistent with the amendments to the AIP that have occurred since 6 the original approval of the AIP. These amendments are a reflection of an increase in 7 demand for land that could be developed with commercial uses and a corresponding 8 decrease in the demand for industrial properties. Approval of the amendment would allow 9 development of land that has remained undeveloped for more than 30 years. The shift 10 from industrial development to commercial development also reflects the lack of demand 11 for industrial uses and Ukiah's place as a regional as well as local destination for 12 commercial goods and services. The Project could also assist with the development of the 13 remaining vacant land within the AIP since there is the potential for other businesses to 14 locate near Costco. Costco provides an opportunity for greater market visibility of the AIP 15 and may also act as a draw for other retailers (DEIR, p. 3.3-17) 16 17 The Project would Recapture Retail Sales Leakage. The City of Ukiah and Airport 18 Park Planned Development provide local and regional retail serving commercial areas. 19 The Project would expand the retail offerings in the AIP PD and City of Ukiah, thereby 2 0 recapturing sales lost through leakage. Leakage represents the demands for goods by 21 market area residents that are not met within the market area. Therefore, these market 22 area residents shop in retail centers outside of the market area (such as Santa Rosa and 23 Rohnert Park). 2 4 In 2011 the Project's market area, which includes the City of Ukiah, experienced 25 $188.1 million in retail sales leakage annually in the categories of motor vehicle and parts 2 6 dealers, home furnishings and appliances, building materials and garden equipment, 2 7 clothing and clothing accessories, general merchandise stores, food services and drinking 2 8 places, and other retail (DEIR, p.3.3-14 and DEIR, Appendix F, Exhibit 16). 2 9 Given the broad range of products sold at Costco, all of the leakage categories are 3 0 relevant to the Project. Recaptured sales leakage, not including sales recaptured from the 31 Santa Rosa and Rohnert Park Costco stores, is estimated to be $20.5 million (DEIR, p. Costco Wholesale Project Environmental Impact Report City Council Resolution 1 g December 4,2013 1 3.3-16, table 3.3-2 and pp. 3.3-14 to 3.3-17). In addition, the Project would recapture 2 Costco sales made by market area residents at the Santa Rosa and Rohnert Park Costco 3 stores. This recaptured leakage is estimated to be $20 million. Total recaptured leakage 4 is estimated to be $40.5 million. 5 The remaining retail sales leakage for the market area is estimated to be $363.8 6 million in the categories of motor vehicle and parts dealers, building materials and garden 7 equipment, clothing and clothing accessories, general merchandise stores, and food 8 services and drinking places. Therefore, the demands of market area residents for 9 products within these categories would not be completely met with the Project which 10 provides opportunities for new retail development within the market area and for existing 11 retailers to position their businesses to fill the unmet demand for products in these 12 categories. 13 The Project would enhance the retail opportunities within the City of Ukiah. 14 The Ukiah Costco store would include the sales of over 4,000 products in the categories of 15 motor vehicle and parts dealers, home furnishings and appliances, building materials, food 16 and beverage, clothing and accessories, general merchandise, food services and drinking 17 places, and other retail (DEIR, p. 3.3-13, table 3.3-1). As stated above, the market area 18 currently experiences leakage in the categories of motor vehicle and parts sales, home 19 furnishings and appliances, building materials and garden equipment, clothing and 2 0 clothing accessories, general merchandise stores, food services and drinking places, and 21 other retail. The Project would increase the retail offerings in categories that experience 22 leakage which would expand the retail opportunities within Ukiah and allow Ukiah and 23 market area residents to shop in Ukiah. 24 25 The Project would locate local and regional serving retail within an existinq 2 6 commercial area in the City of Ukiah. Costco is a business that draws from a large 2 7 market area as demonstrated by the market area identified for the Project(DEIR, pp. 3.3-2 2 8 and 3.3-5, and figure 3.3-2). This is further exemplified by the number of Costco members 2 9 that have Ukiah addresses or that are located within the market area. In 2012, there were 3 0 18,288 Costco members with Ukiah addresses. These members made 201,809 trips to the 31 Santa Rosa and Rohnert Park Costco stores in 2012. In 2011, there were 18,335 Costco Costco Wholesale Project Environmental Impact Report City Council Resolution 19 December 4,2013 1 members within the Project market area. 2 The Project would provide local and regional serving retail within the AIP which is 3 an area that has been developed with local and regional serving businesses. The AIP is an 4 area that has been designated by the City as an area appropriate for regional commercial 5 development based, in part, on its location adjacent to US 101, access to US 101, and 6 ability to attract commercial development. The demand for commercial development 7 within the AIP has increased over time as exemplified by the amendments to the AIP that 8 have expanded the allowed and permitted commercial uses and increased the amount of 9 land area that allows commercial development. 10 11 The Project would provide an opportunity for residents of the City of Ukiah and 12 greater Ukiah Valley to shop locall� In 2012, there were 18,288 Costco members 13 with Ukiah addresses. These members made 201,809 trips to the Santa Rosa and Rohnert 14 Park Costco stores in 2012. In 2011,there were 18,335 Costco members within the Project 15 market area. In 2011, market area members spent$20.6 million at the Santa Rosa Costco, 16 including $3.3 million in gasoline sales, and $4.9 million at the Rohnert Park Costco, 17 including gasoline sales. It is reasonable to assume that with the construction of a Ukiah 18 Costco store, a portion of these trips would be recaptured and redirected to the Ukiah 19 Costco store (DEIR, p. 3.3-14). 20 21 The Projects would help to fulfill the Citv's role as a regional retail center and 22 reduce the number of vehicle trips to retail centers in Sonoma Countv and 2 3 therebv reduce regional air pollution and greenhouse gas emissions. As stated 2 4 above, in 2011 and 2012 there were more than 18,000 market area residents with Costco 2 5 memberships. In 2012, Costco members with Ukiah addressed made 201,809 trips to the 2 6 Santa Rosa and Rohnert Park Costco stores. Construction of a Ukiah Costco store allow 2 7 some of these trips to be redirected to the Ukiah Costco store. This redirection of trips to 2 8 the Ukiah Costco store has the potential to reduce vehicle miles traveled in the region and 2 9 to correspondingly reduce vehicle emissions. This reduction has the potential to reduce 30 regional air pollution and greenhouse gas emissions. 31 Costco Wholesale Project Environmental Impact Report City Council Resolution 2 Q December 4,2013 1 The Project would create employment opportunities within the Citv. The Project 2 would create 175 to 200 new full and part-time jobs. Fifry-percent of the jobs would be 3 full-time and 50% would be part-time. In January 2012, the unemployment rate in Ukiah 4 was 10.2%. Ukiah has a workforce of 7,160 people with 6,430 people employed, leaving 5 730 people available to fill the 175 to 200 jobs that would be created by the Project. 6 The Project would also create construction jobs. Based on the unemployment rate in Ukiah 7 and the number of people available for employment, some of the construction jobs would 8 be filled by Ukiah residents or people from Ukiah Valley. Out of the area construction jobs 9 would benefit the City of Ukiah by increasing lodging, dining, and shopping in the area 10 while these employees work on construction of the Project. 11 12 The Project would create above minimum wage jobs with benefits within the 13 Citv. Information provided by the applicant provides a sampling of wages: Service 14 Assistant $11.50 - $20.30 per hour; Service Clerk $12.00 - $22.00 per hour; and Meat 15 Cutters $12.00 - $23.50 per hour. Costco also provides benefits, including medical, dental, 16 vision, pharmacy, mental health, life insurance, disability, long-term care, employee 17 assistance program, flexible spending accounts, employee stock purchase program, 11 18 paid holidays, college student retention program, and 401(k). Part-time employees 19 working more than 20 hours per week receive core medical, dental, and vacation benefits 2 0 after 6 months and are guaranteed 24 hours per week. 21 22 The Project would generate tax revenue for the Citv allowing the Citv to fund 23 needed services. The Project would generate additional revenue for the City's general 2 4 fund from sales tax, measure S sales tax, properry tax,franchise tax, other taxes, licenses, 25 permits, and fees. The gross general fund revenue generated by the Project is estimated 26 to range from $471,194 to $709,149. Measure S sales tax is estimated to range from 27 $198,051 to $308,856. The estimated cost of providing the City services for the Project is 2 8 $57,477. The net general fund revenue is estimated to range from $413,747 to $651,702, 2 9 excluding Measure S sales tax, and $611,798 to $960,557, including Measure S sales tax. 30 (Ukiah Costco Fiscal Impact Analysis dated July 2013, p.3, exhibit 1). Costco Wholesale Project Environmental Impact Report City Council Resolution 2 1 December 4,2013 1 The Project would also generate revenue for the County of Mendocino and a variety of 2 special districts due to an increase in property tax revenue. The revenue is estimated to be: 3 Mendocino County $65,001; Ukiah Unified School District $92,886; Educational 4 Augmentation Funds $42,510; Mendocino Community College $17,420; and Mendocino 5 County Office of Education $11,180. In addition, $15,146 would be shared by the library, 6 Russian River Cemetery District, County water agencies, and others. (Ukiah Costco Fiscal 7 Impact Analysis dated July 2013, pp. 4-5). 8 9 The Project would contribute funds to needed infrastructure improvements. In 10 1999, the City Council adopted the Redwood Business Park Capital Improvement Program 11 and associated fee schedule. The Project is required to pay the capital improvement fee 12 which is based on the size of the development. Based on a development area of 15.33 13 acres,the capital improvement fee is estimated to be$152,640 based on the retail and gas 14 station uses of the site and their respective acreages (memo from Ben Kageyama, Public 15 Works dated November 14, 2013). 16 1� The Project would improve pedestrian circulation and expand the use of public 18 transit. The Project would provide the following pedestrian facilities: sidewalks along the 19 Airport Park Boulevard frontage; sidewalks along the northern project frontage; a 2 0 pedestrian pathway through the parking lot that connects the fueling station to the front of 21 the building; a sidewalk from Airport Park Boulevard along the south elevation of the store 22 to the store entry; and a concrete pad for the installation of a new bus shelter adjacent to 23 the new sidewalk located along the northern project frontage (plans date stamped 2 4 November 12, 2013). 25 The Project would provide a pad for a bus shelter as shown on the Project plans. 2 6 Mendocino Transit Authority would provide and install a bus shelter on the create pad and 2 7 would extend the bus route to serve the Project site (FEIR, Appendix A, letter from MTA 2 8 dated May 21, 2013). 29 Costco Wholesale Project Environmental Impact Report City Council Resolution 2 2 December 4,2013 1 The Project includes energv conserving measures. The Project would include 2 energy conservation features including: building envelopes insulated to meet or 3 exceed current energy code requirements; commissioning of inechanical systems; 4 installation of energy star rated skylights; reduction in the interior warehouse 5 lighting by from 100% to 66% to 33% to 0%, based on daylight contribution through 6 the skylights; interior and exterior photo sensors to measure daylight and reduce the 7 amount of lighting based accordingly; lighting controlled by the overall project 8 energy management system; parking lot and exterior lights controlled by a photo 9 sensor and time clock; use of high-efficiency light source and ballasts (pulse start 10 Ceramic Metal Halide HID) and bi-level switching for fluorescent fixtures; Cool Roof 11 designs designed to reduce heat transfer through the roof; HVAC comfort systems 12 controlled by a computerized building management system to maximize efficiency; 13 high efficiency, direct ducted HVAC units; use of energy efficient Transformers; use 14 of variable speed motors on make-up air units and booster pumps; direct vent gas 15 water heaters that are 94% efficient or greater; use of reclamation tanks to capture 16 heat released by refrigeration equipment to heat domestic water in lieu of rejecting 17 heat to the outside; use of pre-engineered metal building for efficiency and 18 sustainable materials when compared to a full height masonry counterparts (results 19 in the consumption of fewer building materials in construction, burning of fewer 20 fossil fuels in transportation since steel contains over 80% recycled content and is 21 100% recyclable) (Project Description dated November 13, 2013). 22 2 3 The Project is subject to the requirements of the California Green Building Code. Mitigation 2 4 measure 3.2.2a requires the Project to incorporate sustainability features into the building 25 and site design to achieve a building energy efficiency rating that is greater than the Title 2 6 24 requirement in order to reduce energy consumption and associated GHG emissions 2 7 (FEIR, p. ES-3 and ES-4, FEIR, pp. 5-3 sand 5-4). 28 2 9 3. Based on the foregoing findings, the benefits outweigh the unavoidable adverse air quality and 3 0 global climate change operational emissions impacts,and traffic and transportation level of serve and 31 queuing impacts. Costco Wholesale Project Environmental Impact Report City Council Resolution 2 3 December 4,2013 1 2 INTRODUCED this 4t" day of December 2013 by the following roll call vote: 3 4 AYES: 5 NOES: 6 ABSENT: None 7 ABSTAIN: None 8 9 10 11 12 Doug Crane, Mayor 13 14 15 16 ATTEST: 17 18 19 2 0 Kristine Lawler, City Clerk Costco Wholesale Project Environmental Impact Report City Council Resolution 2 4 December 4,2013 Exhibit A TABLE 5-1 MITIGATION MONITORING AND REPORTING PROGRAM Mitigation Measure Monitoring Responsibility Timing Sign Off Aesthetics Measure 3.1.2::All outdoor light fixtures shall be located,aimed or shielded so as to minimize City of Ukiah Planning and Plan prepared and approved prior to stray light trespassing across property boundaries.Fixtures shall be full cut-0ff and nighttime Community Development issuance of building permit. friendly,consistent with LEED goals and Green Globes criteria for light pollution reduction. Department Monitoring ongoing during The Project applicant will be required to prepare a photometric plan demonstrating that lighting construction. will not spillover onto adjacent properties.Furthermore,the Project will adhere to all City regulations relating to signage and the shielding of light in order to reduce any potential negative effects from new light sources(per Building Code Sections§3225,§3226,§3227).The revised light plan shall demonstrate an average light level no greater than 4 footcandle(fc)at grade(ground surface),and shall not exceed 10 fc in any location.Light trespass onto adjacent private property shall not exceed 0.2 fc (at the property line).Light trespass onto adjacent public rights of way or private roadway easements shall not exceed 0.2 fc measured at the centerline of the right of way.Pole-mounted parking lot lighting shall be tumed off one hour after the store closes.Altematively,50%of pole-mounted lighting may be turned off if the City or store operator requests additional security lighting. These standards shall be included in the Project conditions of approval as well as the mitigation monitoring and reporting program. Air Quality Measure 3.2.2a:The Project will incorporate sustainability features in building and site design with City of Ukiah Planning and Plan prepared and approved prior to the goal of reaching a building efficiency rating that is greater than the Title 24 requirement,in order Community Development issuance of building permit. to reduce energy consumption and associated GHG emissions.As set forth in the"Project Department Monitoring ongoing during Description,"the Project will incorporate the following sustainability features: construction. • Parking lot light standards are designed to provide even light distribution and use 20%less energy compared to a greater number of fixtures at lower heights.The use of inetal halide lamps provide a color corrected white light and a higher level of perceived brightness with less energy than other lamps such as high pressure sodium. . Locally extracted and manufactured building materials will be utilized where feasible. . Pre-manufactured building components,including structural framing and metal panels,are designed to minimize waste during construction. • Pre-manufactured metal wall panels with insulation are designed to conserve energy by increasing R-value and solar reflectivity. Building heat absorption is reduced by a decrease in the thermal mass of the metal wall when compared to a typical masonry block wall. . Reflective roof material will meet the requirements for the USEPA's Energy Star energy efficiency program. Reflective roofs produce lower heat absorption and thereby lower energy usage during the summer months. • Skylights are used on the roof to reduce the need for interior lighting.A"daylight harvesting" system monitors and adjusts the mechanical and lighting systems in order to conserve energy. The system includes the skylights,light monitors,energy efficient lighting fixtures,and associated control systems.On a typical sunny day,fewer than one third of the interior lights are needed. . Tree plantings to reduce summer heat gain within the parking field. City of Ukiah Costco Wholesale Project rJ-� ESA/211169 Final Environmental Impact Report November 2013 Exhibit A TABLE 5-1 MITIGATION MONITORING AND REPORTING PROGRAM Mitigation Measure Monitoring Responsibility Timing Sign Off • Planting to incorporate a substantial amount of drought tolerant species. • Irrigation system to incorporate the use of deep root watering bubblers for parking lot shade trees to minimize water usage and ensure that water goes directly to the intended planting areas. Measure 3.2.2b:The applicant shall implement the following measures,to the extent feasible and City of Ukiah Planning and Plan prepared and approved prior to appropriate,to reduce motor vehicle trips and emissions associated with Project operations: Community Development issuance of building permit. • Promote the use of alternative fueled vehicles and equipment(i.e.,CNG,electric,etc)for Department Monitoring ongoing during Project operations.The applicant shall implement two or more of the following measures: construction. o Warehouse equipment,including forklifts,will be electric powered. o Landscaping equipment will be electric powered. o Preferred parking for zero emission vehicles. o Retail fueling station will include a CNG refueling station. o Customer parking will include a minimum of one(1)electric recharge station. . Provide commute incentives for employees to utilize alternative transportation,such as carpool/vanpool,transit,cycling,or walking.A Costco carpool and alternative transportation manager shall be designated to oversee the implementation of these TDM measures.Costco will provide its employees the following incentives: o Four carpool parking spaces reserved for Costco employees; o Bicycle parking as required by City standards; o Employee locker rooms; o Rideshare Program,including recognition of rideshare participants at monthly staff meetings and an annual update of rideshare benefits and incentives provided to employees; o A Rideshare Bulletin Board to be located in the employee breakroom,which will contain information about the Rideshare Program,transit, bike routes,and other alternate commute information; o A Rideshare Newsletter to be published and posted on the Rideshare Bulletin Board on a quarterly basis; o Costco employees commuting to work in a rideshare program will be eligible for a guaranteed ride home program in the event of an emergency or unexpected situation (such as unscheduled overtime)on the days they rideshare. o The applicant shall increase transit accessibility.Such measures could include the purchase of transit passes for employees.Also,implement Mitigation Measure 3.10.2a. . The applicant shall improve the pedestrian and bicycle network. Implement Mitigation Measure 3.10.2b and 2c. City of Ukiah Costco Wholesale Project rJ-2 ESA/211169 Final Environmental Impact Report November 2013 Exhibit A TABLE 5-1 MITIGATION MONITORING AND REPORTING PROGRAM Mitigation Measure Monitoring Responsibility Timing Sign Off Measure 3.2.2c: Use low VOC architectural coatings. City of Ukiah Planning and Plan prepared and approved prior to Community Development issuance of building permit. Department Monitoring ongoing during construction. Geology and Soils Measure 3.4.1a(For Seismic Ground Shaking)-Prior to the issuance of a building permit for any City of Ukiah Planning and Plan prepared and approved prior to portion of the Project site,the Project sponsor shall: Community Development issuance of building permit. Department,City Building 1. Submit to the City Building Services Division a site-specific,design level geotechnical Services Division investigation prepared for each development parcel by a registered geotechnical engineer.The investigation shall comply with all applicable state and local code requirements and: a. Include an analysis of the expected ground motions at the site from known active faults using accepted methodologies; b. Determine structural design requirements as prescribed by the most current version of the California Building Code,including applicable City amendments,to ensure that structures can withstand ground accelerations expected from known active faults; c. Determine the final design parameters for walls,foundations,foundation slabs,utilities, roadways,parking lots,sidewalks,and other surrounding related improvements; 2. Project plans for foundation design,earthwork,and site preparation shall incorporate all of the mitigations in the site specific investigations. 3. The Project structural engineer shall review the site specific investigations,provide any additional necessary mitigation to meet Building Code requirements,and incorporate all applicable mitigations from the investigation in the structural design plans and shall ensure that all structural plans for the Project meet current Building Code requirements. 4. A registered City geotechnical engineer or third-party registered engineer retained to review the geotechnical reports shall review each site-specific geotechnical investigation,approve the final report,and require compliance with all geotechnical mitigations contained in the investigation in the plans submitted for the grading,foundation,structural,infrastructure and all other relevant construction permits. 5. The City shall review all Project plans for grading,foundations,structural, infrastructure and all other relevant construction permits to ensure compliance with the applicable geotechnical investigation and other applicable Code requirements. Measure 3.4.1 b(For liquefaction and earthquake induced settlement)—Prior to the issuance of a City of Ukiah Planning and Plan prepared and approved prior to building permit for any portion of the Project site,the Project sponsor shall: Community Development issuance of building permit. Department,City Building 1. Submit to the City a site-specific,design level geotechnical investigation prepared for each Services Division building site or installed facility location by a registered geotechnical engineer.The investigation shall comply with all applicable state and local code requirements and: a. Provide site specific engineering requirements for mitigation of liquefiable soils; City of Ukiah Costco Wholesale Project rJ-3 ESA/211169 Final Environmental Impact Report November 2013 Exhibit A TABLE 5-1 MITIGATION MONITORING AND REPORTING PROGRAM Mitigation Measure Monitoring Responsibility Timing Sign Off b. Specify liquefaction mitigations that shall use proven methods,generally accepted by registered engineers,to reduce the risk of liquefaction to a less than significant level such as: i. subsurface soil improvement, ii. deep foundations extending below the liquefiable layers, iii. structural slabs designed to span across areas of non-support, iv. soil cover sufficiently thick over liquefaction soil to bridge liquefaction zones, v. dynamic compaction, vi. compaction grouting, vii. jet grouting, viii. mitigation for liquefaction hazards suggested in the California Geological Survey's Geology(CGS)Guidelines for Evaluating and Mitigating Seismic Hazards(CGS Special Publication 117, 1997)including edge containment structures(berms,dikes, sea walls,retaining structures,compacted soil zones), removal or treatment of liquefiable soils,modification of site geometry,lowering the groundwater table,in-situ ground densification,deep foundations, reinforced shallow foundations,and structural design that can withstand predicted displacements. 2. The geotechnical investigation shall evaluate these mitigations and identify the most effective and practicable mitigation methods for inclusion in the Project plans.These identified mitigations shall be reviewed to ensure compliance with the CGS Geology Guidelines related to protection of the public safety from liquefaction. 3. Project plans for foundation design,earthwork,and site preparation shall incorporate all of the mitigations in the site specific investigations. 4. The Project structural engineer shall review the site specific investigations,provide any additional necessary mitigation to meet Building Code requirements,and incorporate all applicable mitigations from the investigation in the structural design plans and shall ensure that all structural plans for the Project meet current Building Code requirements. 5. A registered City geotechnical engineer or third-party registered engineer retained to review the geotechnical reports shall review each site-specific geotechnical investigation,approve the final report,and require compliance with all geotechnical mitigations contained in the investigation in the plans submitted for the grading,foundation,structural, infrastructure and all other relevant construction permits. 6. The City shall review all Project plans for grading,foundations,structural, infrastructure and all other relevant construction permits to ensure compliance with the applicable geotechnical investigation and other applicable Code requirements. Hazards and Hazardous Materials Measure 3.5.2: Hazards Remediation. If contaminated soil and/or groundwater are encountered or City of Ukiah Planning and During Project construction. suspected contamination is encountered during Project construction activities, work shall be halted Community Development City of Ukiah Costco Wholesale Project rJ-4 ESA/211169 Final Environmental Impact Report November 2013 Exhibit A TABLE 5-1 MITIGATION MONITORING AND REPORTING PROGRAM Mitigation Measure Monitoring Responsibility Timing Sign Off in the area, and the type and extent of the contamination shall be identified in accordance with Department coordination of the overseeing agency(RWQCB, DTSC, and/or MCEHD). A qualified professional, in consultation with regulatory agencies (RWQCB, DTSC, and/or MCEHD) shall then develop an appropriate method to remediate the contamination, and determine the appropriate disposal method of any contaminated soil and/or groundwater.At this time,the available studies suggest that no contaminated soil or groundwater will be found on site. Nevertheless, this mitigation measure would require remediation procedures in the unlikely event that contamination is encountered. Additionally, if required by an overseeing agency, a remediation plan shall be implemented either before or in conjunction with continued Project construction. Hydrology and Water Quality Measure 3.6.2: In the event that construction period dewatering is required,The Project Applicant City of Ukiah Planning and Prior to Project construction. will coordinate with the City concerning dewatering activities and compliance with the provisions in Community Development the permit,such as the effluent limitations in the permit,prior to discharge.The applicant will: Department • Submit a Report of Waste Discharge and Application for NPDES Permit along with a feasibility study of reuse of the groundwater to the RWQCB. . Discharge flows only upon receipt of the Discharge Authorization Letter from the RWQCB. Measure 3.6.4:The Applicant shall prepare and submit to the City engineer and the North Coast City of Ukiah Planning and Plan prepared and approved prior to Regional Water Quality Control Board for approval a Final Drainage Plan.The Final Drainage Plan Community Development issuance of building permit. shall include design/plan level depiction of the proposed stormwater drainage facilities on site, Department Monitoring ongoing during including the proposed storm drainage system,vegetated swales,and the water quality features.The construction. following measures shall be implemented within the Final Drainage Plan,based on modeled runoff volumes and flow rates specific to with-Project conditions: • The applicant shall design,implement,and maintain a stormwater system such that there would be no net increase in Project condition downstream peak flows;and/or,with respect to the additional impervious surface area proposed for the Project,the[applicant]shall design and implement volume-and/or flow-based Treatment Control Best Management Practices(BMPs) as defined in Attachment 4(pages 5-6)of the State Water Resources Control Board(SWRCB) small municipal separate storm sewer systems(MS4s)General Permit(Small MS4 General Permit)(SWRCB Order 2003-0005-DWQ). • The Final Drainage Plan is not required to include retention and/or retention features if such features are not necessary to satisfy the above requirements. . Prior to implementation,design drawings and any related documents or specifications with respect to these required mitigation measures shall be submitted to the City of Ukiah and the North Coast Regional Water Quality Control Board. • Modification of storm drain facilities within the State right-of-way(U.S. 101),may require an encroachment permit,and shall be submitted to the California Department of Transportation. Transportation and Traffic Measure 3.10.1:The City shall construct Talmage Road Interchange improvements,including the City of Ukiah Planning and The Project funding shall be City of Ukiah Costco Wholesale Project rJ-rJ ESA/211169 Final Environmental Impact Report November 2013 Exhibit A TABLE 5-1 MITIGATION MONITORING AND REPORTING PROGRAM Mitigation Measure Monitoring Responsibility Timing Sign Off provision of two left-turn lanes on the westbound Talmage Road approach to Airport Park Blvd.The Community Development obligated prior to the issuance of a improvements include the following components: Department(in coordination with building permit.The interchange • Closure of the existing stop-controlled US 101 Southbound Off-Ramp right-turn to westbound the City of Ukiah Public Works improvements shall be substantially Talmage Road Department and California completed prior to issuance of the Department of Transportation) certificate of occupancy for the . All US 101 Southbound Off-Ramp traffic would be redirected to access Talmage Road via a Project. new full access intersection where the current loop ramp connects with Talmage Road so that all off-ramp traffic would utilize the off-loop ramp. . The existing US 101 Southbound Off-Ramp loop would be reconfigured to a more standard 90-degree angle. • The intersection of the loop ramp with Talmage Road would be controlled by a new traffic signal. • Both the eastbound Talmage Road and northbound US 101 Southbound Off-Ramp right-turn lanes will have right-turn overlap phasing,while the westbound Talmage Road approach would include protected left-turn phasing. • The design would also provide for two left-turn lanes on the westbound Talmage Road approach to Airport Park Boulevard,which should extend the entire distance to the adjacent intersection. • Since the left-turn lanes would extend all the way to the intersection,signs and markings on the off-ramp are provided to direct drivers to the correct lane for their destination. . Intersection markings should be incorporated that provide guidance so as not to create a trap- lane situation for drivers in the far northbound left lane. • Removal of the existing northbound right-turn overlap phasing at Airport Park Boulevard/Talmage Road. The City shall coordinate with the California Department of Transportation regarding improvements to state facilities.The traffic mitigations shall be completed before Costco is issued a certificate of occupancy.The City shall establish a funding mechanism to pay for the cost of the improvements. Measure 3.10.2a: Provide a concrete pad suitable for future location of bus shelter on the northern City of Ukiah Planning and The concrete pad location will be frontage of the Project site,adjacent to the proposed sidewalk. Community Development identified on the approved building Department and Mendocino plan,as determined through Transit Authority coordination between the City and the Mendocino Transit Authority. Measure 3.10.2b:The Project Applicant shall implement the following measures to reduce potential City of Ukiah Planning and Complete prior to certificate of pedestrian impacts associated with the Project: Community Development occupancy. • Install sidewalks along the Project frontage on Airport Park Boulevard as identified in the project Department site plan. . Install high visibility crosswalk markings across driveway entrances to the Project including the existing cul-de-sac on the north side of the project to increase visibility of pedestrians. City of Ukiah Costco Wholesale Project rJ-6 ESA/211169 Final Environmental Impact Report November 2013 Exhibit A TABLE 5-1 MITIGATION MONITORING AND REPORTING PROGRAM Mitigation Measure Monitoring Responsibility Timing Sign Off • Install ADA compliant curb ramps at driveway crossings and transition points along the Project frontage.Also,ensure that the existing curb ramps at the existing cul-de-sac intersection with Airport Park Boulevard are compliant with current ADA standards. • Provide an adequate pedestrian connection from the street frontage and main parking area to the retail store entrance(per Ordinance 1098). Measure 3.10.2c:The Project Applicant shall implement the following measures to reduce potential City of Ukiah Planning and Complete prior to certificate of bicycle impacts associated with the Project: Community Development occupancy. . Install Class III bike lanes along the Project frontage on Airport Park Boulevard. Department . The Project Applicant shall comply with Ordinance 1098,Airport Industrial Park Planned Development,requirements to install the required number of bicycle parking spaces(long-term spaces[bicycle lockers or covered parking spaces to reduce exposure to the elements and vandalism]for Project employees and short-term spaces for Project patrons and employees[at a convenient location adjacent to the store's primary entry points]).Bicycle racks should be an appropriate design and installed correctly to ensure proper function. Measure 3.10.4: In addition to the planned City-constructed left-turn lane on the westbound City of Ukiah Planning and City shall incorporate improvements approach of Airport Road,the City shall construct a left-turn lane on the eastbound Hastings Avenue Community Development into planned improvements at South approach at South State StreeUHastings Avenue-Airport Road. Implementation of the recommended Department StreeUHastings.To be completed improvements at Talmage Road/Airport Park Boulevard would result in acceptable operating within five years of Project operation conditions during both the a.m.and p.m. peak hours. (as measured from certificate of occupancy). Global Climate Change Measure 3.11.1: Implement Mitigation Measures 3.2.2a through 3.2.2c. City of Ukiah Planning and Plan prepared and approved prior to Community Development issuance of building permit. Department Monitoring ongoing during construction. Biological Resources Measure 3.12.1:The following measures shall be implemented to reduce potential impacts on City of Ukiah Planning and 30 days prior to construction IF nesting birds: Community Development construction begins February 15 1. If construction-related activities are to occur during the nesting bird season(February 15 through Department through August 31. August 31),a qualified biologist shall conduct a preconstruction survey of all potential nesting If active nest is found,monitoring habitats within 30 days prior to the start of activities(grubbing,dirt-moving,mobilization,or other schedule to be determined by the construction-related activities)and within 500 feet of construction activities. If ground-disturbing qualified biologist and the California activities are delayed or suspended for more than 30 days after the pre-construction survey,the site Department of Fish and Game shall be resurveyed.The results of these surveys shall be documented in a technical memorandum that shall be submitted to the California Department of Fish and Game(if nesting birds are documented)and the City of Ukiah. 2. If an active nest is found during the preconstruction survey,a no-work buffer of 500 feet will be established unless otherwise approved by the California Department of Fish and Game(DFG). City of Ukiah Costco Wholesale Project rJ-7 ESA/211169 Final Environmental Impact Report November 2013 Exhibit A TABLE 5-1 MITIGATION MONITORING AND REPORTING PROGRAM Mitigation Measure Monitoring Responsibility Timing Sign Off The qualified biologist will coordinate with DFG to determine the appropriate nest avoidance, monitoring,and protective measures appropriate for the species and site conditions. In addition to establishment of a no-work buffer,these measures may include daily or spot-check monitoring of the nesting activity as deemed appropriate by DFG. 3. If the preconstruction survey indicates that nests are inactive or potential habitat is unoccupied during the construction period, no further mitigation is required. Trees and shrubs that have been determined to be unoccupied by birds or that are located more than 500 feet from active nests may be removed(500 feet is the distance regularly recommended by DFG to prevent impacts to active avian nests). Cultural Resources Measure 3.14.2: If cultural resources are encountered,all activity in the vicinity of the find shall cease until it can be evaluated by a qualified archaeologist and a Native American representative. Prehistoric archaeological materials might include obsidian and chert flaked-stone tools(e.g., projectile points,knives,scrapers)or toolmaking debris;culturally darkened soil("midden") containing heat-affected rocks,artifacts,or shellfish remains;and stone milling equipment(e.g., mortars,pestles,handstones,or milling slabs);and battered stone tools,such as hammerstones and pitted stones.Historic-period materials might include stone,concrete,or adobe footings and walls; filled wells or privies;and deposits of inetal,glass,and/or ceramic refuse. If the archaeologist and Native American representative determine that the resources may be significant,they will notify the City of Ukiah.An appropriate treatment plan for the resources should be developed.The archaeologist shall consult with Native American representatives in determining appropriate treatment for prehistoric or Native American cultural resources. In considering any suggested mitigation proposed by the archaeologist and Native American representative,the City will determine whether avoidance is necessary and feasible in light of factors such as the nature of the find, Project design,costs,and other considerations. If avoidance is infeasible,other appropriate measures(e.g.,data recovery)will be instituted.Work may proceed in other parts of the Project area while mitigation for cultural resources is being carried out. Measure 3.14.3: If human remains are encountered unexpectedly during construction excavation and grading activities,State Health and Safety Code Section 7050.5 requires that no further disturbance shall occur until the County Coroner has made the necessary findings as to origin and disposition pursuant to PRC Section 5097.98. If the remains are determined to be of Native American descent,the coroner has 24 hours to notify the NAHC.The NAHC will then identify the person(s) thought to be the Most Likely Descendent,who will help determine what course of action should be taken in dealing with the remains. City of Ukiah Costco Wholesale Project rJ-$ ESA/211169 Final Environmental Impact Report November 2013 ATTACHMENT 2 ORDINANCE NO . ORDINANCE OF THE CITY COUNCIL OF THE CITY OF UKIAH AMENDING THE AIRPORT INDUSTRIAL PARK PLANNED DEVELOPMENT The City Council of the City of Ukiah hereby ordains as follows : Section One The purpose of this amendment to the Airport Industriai Park (AIP) Planned Development Ordinance is to change the Land Use Designation on : 1 ) approximately +/- 4 . 1 acres currently designated Industrial/Automotive Commercial to Retail Commercial ; and 2) on approximately +/- 11 . 2 acres of Light Manufacturing/Mixed Use to Retail Commercial in order to allow the development of the Costco Warehouse and Fueling Station Project . Section Two The change in the land use designations will increase the amount of land designated Retail Commercial by +/- 15 . 33 acres and will decrease the amount of land designated Industrial/Auto Commercial by 4 . 1 acres and decrease the amount of land designated Light Industrial/Mixed Use 11 . 2 by acres respectively . Section Three The overall purpose of the Airport Industrial Park Planned Development is to provide for a coordinated development of compatible industrial , office , and commercial land uses . It details both allowed and permitted uses within each land use category , regulate nuisances , and provide development standards and design guidelines . The AIP Planned Development is consistent with the "Master Plan " land use designation for the property contained in the Ukiah General Plan . Section Four This ordinance also formally amends the Land Use Map that illustrates which land use 1 designations are assigned to the various properties throughout the Airport Industrial Park . The map shows the approximate +/- 15 . 33 acres east of Airport Park Boulevard in the southern portion of the Park being redesignated from " Industrial/Automotive Commercial " and " Light Industrial/Mixed Use" to " Retail Commercial . " The land use designations apply to the 138-acre Airport Industrial Park in the following manner: 1 . Professional Office : Applies to the northwest portion of the site , bounded by Talmage Road on the north , Airport Park Boulevard on the east, and Commerce Drive on the south (approximately 12 . 6 acres) . 2 . Hiqhwav Commercial : Applies only to the northeastern portion of the site , bounded by Talmage Road to the north , Airport Park Boulevard to the west , Highway 101 to the east , and the existing large commercial retail store property to the south (approximately 1 . 4 acres) . 3. Retail Commercial : Applies to 13 . 44 acres north of Commerce Drive , and approximately 38 . 71 acres south of Commerce Drive , bounded by Airport Park Boulevard on the west , and Highway 101 on the east. (approximately 52 . 3 acres) . 4. Industrial : Applies to the property situated at the southern end of the Airport Industrial Park (approximately 18 . 3 acres) . 5. Industrial/Automotive Commercial : Applies to approximately 3 . 9 acres east of Airport Park Boulevard between Retail Commercial designated lands located on the north and south ends of the Airport Industrial Park Planned Development . These approximately 3 . 9 acres include APNs 110-080-56 , 110-080-60 , and 110- 080-61 . 6 . Liqht Manufacturinq/Mixed -Use : Applies to the lands west of Airport Park Boulevard south of Commerce Drive . Includes the (2) acres adjacent to and north of the existing Mendocino Brewing Company parcel , and the approximate 2 one ( 1 ) acre west of and adjacent to the existing pond . It also includes the approximate 3 . 27 acres east of Airport Park Boulevard south of the Retail Commercial designated lands and north of the existing pond (approximately 35 . 3 acres) . 7 . Roads and landscapinq : Approximately 14 . 2 acres . 8 . Total Acreaqe AIP : Approximately 138 acres . Section Five The Airport Industrial Park Planned Development was originally approved by City Council Resolution No . 81 -59 on March 3 , 1981 , embodied in Use Permit No . 81 -39 . It was amended and further articulated in 1991 when the City Council adopted Resolution No . 91 -4 which expanded the locations where commercial uses were allowed to include the area south of Commerce Drive between US 101 and Airport Park Boulevard . In 1993 , the City Council adopted a revised Ordinance (929) to allow "General Commercial" in addition to the approved " Highway Oriented Commercial" land uses in the area bounded by Talmage Road on the north , Highway 101 on the east , Commerce Drive on the south , and Airport Park Boulevard on the west. This Ordinance also created the Planned Development Ordinance out of what was previously a Use Permit. On May 1 , 1996 , the City Council adopted Ordinance 963 , which amended the AIP Planned Development to make it a more organized and useable set of regulations . In 1996, Ordinance 964 was adopted to make the following changes to the land use designations : Industrial/Commercial to Retail Commercial ; Office/Commercial to Professional Office; and Highway Oriented Commercial/General Commercial to Highway Oriented Commercial . This amendment increased the amount of land that allowed commercial uses and correspondingly decreased the amount of land designated for industrial uses . In 1997 Ordinance 991 further amended the AIP to create the Industrial/Auto Commercial land 3 and to change the designation of approximately 16 acres of land from Industrial to Industrial/Auto Commercial . On April 2 , 1997 , the Planned Development Ordinance was amended to include drive-thru restaurants as a permitted use on the lands designated as Highway Commercial . In 1999 , Ordinance 1024 amended the land use designations to change 32 acres south of Hastings Avenue and west of Airport Park Boulevard from Industrial to Industrial Mixed-Use . In 2000 , Ordinance 1030 expanded the uses allowed in the Professional Office Land Use Designation to include list hotels and sit-down restaurants . In 2004 , Ordinance 1051 changed the " Industrial Mixed Use" designation to " Light Manufacturing Mixed Use , " and established new standards for commercial , professional office , light manufacturing , and low density residential land uses in the Light Manufacturing/Mixed- Use area that are separate from those contained in Section " G" of this Ordinance . On August 1 , 2007 , the Ordinance was amended by Ordinance 1098 to change the Land Use Designation on approximately 8 acres currently designated Industrial/Automotive Commercial to Light Manufacturing/Mixed Use , and to change the Land Use Designation on approximately 6 . 5 acres currently designated Industrial to Light Manufacturing/Mixed Use . Section Six Airport Industrial Park Planned Development , as amended herein , provides a mixture of industrial , commercial , low density residential , and office land uses within a Planned Development ( PD) , consistent with the City of Ukiah General Plan Master Plan land use designation . Section Seven The Development Map (Generalized Land Use Map) for this Planned Development , as well as the design guidelines and development standards constitute the Concept Development Plan , as required by Article 14 , Chapter 2 (Zoning ) of the Ukiah Municipal Code . The Development Map ( Generalized Land Use Map) attached as Exhibit "A" , is approved . The 4 Traffic Circulation Plan for this Planned Development is discussed in Section " I " on page 24 , and the Circulation Map , attached as Exhibit " B" , is approved . Section Eight Development standards not addressed in the Planned Development regulations shall be those specified in the City of Ukiah Zoning Code . Section Nine Amendment to this ordinance requires City Council action . All Major Variance , Use and Site Development Permits for proposed developments within the Airport Industrial Park require City Planning Commission review and action . Minor permits are subject to the review and action by the City Zoning Administrator. Decisions on Major and Minor Variance , Site Development and Use Permits made by the City Planning Commission or Zoning Administrator are appealable to the City Council pursuant to section 9266 of the Ukiah Municipal Code . Section Ten Some small commercial land uses may be permitted on the Industrial designated land if they are primarily intended to provide commercial type services to employees within the Airport Industrial Park . Section Eleven This version of the Airport Industrial Park (AIP) Planned Development supersedes all past versions , and shall govern and regulate the growth and development within the AIP. Section Twelve The regulations for this Planned Development , as required in Article 14 , Chapter 2 (Zoning ) , of the Ukiah Municipal Code are as follows : A. INDUSTRIAL DESIGNATION 1 . Allowed Uses 5 The following industrial uses are allowed in the Industrial designation with the securing of a Site Development Permit . a . Manufacturing - activities or operations involving the processing , assembling , blending , packaging , compounding , or fabrication of previously prepared materials or substances into new products . b . Warehouse and Distribution Activities - includes warehousing , and storage not available to the general public; warehousing and distribution activities associated with manufacturing , wholesaling , or non-retail business uses ; delivery and transfer services ; freight forwarding ; moving and storage ; distribution terminals for the assembly and breakdown of freight; or other similar use involving shipping , warehousing , and distribution activities . c . Wholesaling and Related Uses - includes establishments engaged in wholesale trade or warehousing activities including maintaining inventories of goods ; assembling , sorting , and grading goods into large lots ; breaking bulk and redistribution in smaller lots ; selling ��� merchandise to retailers , industrial , commercial , institutional , or business users , or other wholesalers . d . Contractor's Offices - includes business office for building , plumbing , electrical , roofing , heating , air conditioning , and painting contractors including storage of incidental equipment and supplies . e . Agricultural - allowed as a continuation of the existing land use , including all necessary structures and appurtenances . 6 f. Research and Development Laboratories , and computer and data processing . g . Accessory Uses and Structures - activities such as administrative offices and warehouses which are related and ancillary to an allowed use . Ancillary structures containing ancillary uses shall be located on the same parcel as the primary use/structure , and shall not exceed 25% of the gross floor area of structure (s) containing the primary use . 2. Permitted Uses The following small commercial , business support , and repair service land uses may be permitted in the Industrial land use designation with the securing of a Use Permit, provided they are situated on a parcel no larger than one-half acre in size , and do not exceed 20 percent of the total land dedicated to the Industrial Land Use Designation : a . Delicatessen , sandwich shop , or small sit-down restaurant ( no drive-thru restaurants shall be permitted) . b . Small grocery or convenience store . c . Banking facility . d . Child day-care facility. e . Industrial and business support services - establishments primarily engaged in providing services to business and industry , such as blueprinting and photocopying , janitorial and building maintenance , equipment rental and leasing , medical labs , commercial testing 7 laboratories and answering services . f. Public Facilities - includes all public and quasi-public facilities such as utility substations , post offices , fire stations , and government offices . g . Repair Services - includes repair services such as radio and television , furniture , automotive repair, body and fender shops . h . Communication Installations - includes radio and television stations , telegraph and telephone offices , cable T. V. , and microwave stations . B. PROFESSIONAL OFFICE DESIGNATION 1 . Purpose The purpose of the Professional Office Land Use Designation is to provide opportunity for a variety of business and professional offices , as well as a limited number of highway commercial land uses . Land uses such as child care facilities , delicatessens , and small retail stores and shops are intended to be ancillary components to professional office development projects , and the limited highway commercial land uses . 2 . General Requirements a . Child care facilities , delicatessens , and small commercial retail stores and shops shall not exceed 20 percent of the total developable square footage of any one parcel . The resulting square footage that comprises this 20 percent shall only be developed with individual store/shop spaces that do not exceed 2 , 000 square feet in size . 3 . Allowed Uses 8 The following uses are ailowed in the Professional Office designation with the securing of a Site Development Permit : a . Professional and business offices such as accountants , engineers , architects , landscape architects , surveyors , attorneys , advertising , consultants , bookkeeping , medical and dental offices , and other similar activities . b . Business and office support services - includes services such as branch banks , savings and loan , credit unions , insurance brokers , real estate sales , blueprinting and photocopying and answering services . c. Child day-care facility. d . Retail commercial in the built-out northwest portion of this area outside the boundaries of the Redwood Business Park. e . Hotels and sit-down restaurants ( no drive-thru restaurants) . 4. Permitted Uses The following uses are permitted in the Professional Office Designation with the securing of a Use Permit: a . Delicatessen and sandwich shop . b . Small grocery or convenience store . c . Small retail commercial stores and shops of 2 , 000 square feet or less , and in combination not exceeding 20 percent of the total developable square footage on a parcel . C . HIGHWAY COMMERCIAL DESIGNATION 1 . Allowed Uses 9 The following uses are allowed in the Highway Commercial designation with the securing of a Site Development Permit: a . Businesses such as motels , sit-down and drive-thru restaurants , service stations , and other similar uses that provide services and merchandise primarily to highway travelers . b . Retail commercial stores. D. RETAIL COMMERCIAL DESIGNATION 1 . Allowed Uses The following uses are allowed in the Retail Commercial designation with the securing of a Site Development Permit : a . Retail commercial stores . b . Child day-care facility . c. Delicatessen , sandwich shop , and ice cream parlor. 2 . Permitted Uses The following uses are permitted in the Retail Commercial designation with the securing of a Use Permit : a . Restaurants (no drive-thru restaurants) . b . Small grocery or convenience store . c . Banking facility. E . INDUSTRIAL/AUTOMOTIVE COMMERCIAL DESIGNATION 1 . Allowed Uses The following uses are allowed in the Industrial/Automotive Commercial Land Use Designation with the securing of a Site Development Permit : a . All the allowed industrial uses listed in Item A ( 1 ) above . 10 b . Automobile dealerships , except for those that exclusively sell used vehicles . 2 . Permitted Uses The following uses are allowed in the Industrial/Automotive Commercial Land Use Designation with the securing of a Use Permit : a . All the permitted industrial land uses listed in Item A (2) above . b . Delicatessen , sandwich shop , or small sit-down restaurant ( no drive-thru restaurants) . c. Automotive service (gas) station . d . Small grocery store , mini-market, or convenience store . e . Uses related to automobile dealerships such as tire stores , auto parts stores , car-washing facilities , automobile repair business , etc . F . LIGHT MANUFACTURING/MIXED-USE DESIGNATION 1 . Purpose and Intent The purpose of the Light Manufacturing / Mixed - Use land use designation is to provide for a compatible mix of light manufacturing activities , commercial land uses , professional offices , and limited low-density residential uses . The intent is to provide an opportunity for a diversity of land uses to locate near each other that would typically be viewed as incompatible , but because of creative site planning and design , they can function in harmony without adversely impacting one another. For example , the Ordinance permits " live-work" land uses where small dwelling units can be incorporated into low intensity light manufacturing or warehousing operations . There is also opportunity for low-density apartments to be situated above commercial shops and professional offices . 11 The purpose of the Light Manufacturing / Mixed- Use designation is also to promote Smart Growth and New Urbanism planning techniques . The Ordinance contains design standards that will lead to the development of office , light manufacturing , commercial , and residential uses in a pedestrian oriented , aesthetically pleasing , mixed-use neighborhood . The Ordinance requires light manufacturing land uses , if proposed , to be situated along the railroad tracks on the rear of the parcels , and to develop other land uses along the front of the parcels on Airport Park Boulevard , except for the parcels east of Airport Park Boulevard where light manufacturing land uses can occur anywhere on the parcels with the required yard setbacks . The majority of parking facilities are required to be situated in -between the light manufacturing and commercial land uses in the middle of the parcels , rather than along the Airport Park Boulevard frontage . The land uses along Airport Park Boulevard are held to a higher design and site planning standard than the light manufacturing land uses , because it is situated in the more visible location , and because light manufacturing land uses are highly desired and a lesser design standard provides an inherent incentive . It is possible to develop full light manufacturing , office , or commercial land uses on a parcel , provided they are laid out and designed to be compatible with surrounding land uses . Professional office and commercial land uses , if proposed as stand along developments must adhere to a high site planning and design standard . The regulations are intended to create a compatible mix of land uses with ample 12 landscaping and strategic open areas , pedestrian walkways , and attractive architecture in an inviting scale , with hidden parking and practical functionality . 2. General Requirements a . Light manufacturing and warehousing land uses should be located along the railroad tracks on the western portion of the current parcels or anywhere on the designated parcels east of Airport Park Boulevard with the required yard setbacks . Light manufacturing and warehousing can be situated along Airport Park Boulevard if it conforms to the site planning and design standards for commercial development . b . The majority of parking spaces for mixed-use development shall be located in- between the light manufacturing/warehousing land uses and the land uses along Airport Park Boulevard . Every attempt shall be made to create parking that cannot be seen from public streets . c. Shared access is strongly encouraged between land uses on the same and adjacent parcels to reduce encroachments onto Airport Park Boulevard . d . Street trees and a meandering sidewalk are required along Airport Park Boulevard . e . The architectural facades for buildings situated along and facing Airport Park Boulevard shall be consistent with Section 5(fl of this Subsection , and shall be designed to soften height, bulk, and mass . f. The orientation , height , and design of buildings , as well as the theme for property development shall be based on creating compatibility between land uses . g . There is opportunity for low density residential land uses such as apartment units above offices or commercial spaces , but densities are limited west of Airport Park Boulevard because of airport constraints to a total of 60 people per acre on a given parcel . 13 3 . Permitted Land Uses a . Notwithstanding Subsection " K" , all light manufacturing , commercial , professional office , low density residential , and mixed -use projects require the securing of a Use Permit from the City Planning Commission . The Use Permit process shall include an analysis of site planning and architecture , pursuant to Section 9262 of the Ukiah Municipal Code . 4. Required Findinqs a . Prior to approving a Use Permit for a project situated on land in the Mixed- Use designation , the Planning Commission and/or the City Council shall make the following findings : 1 . The proposed land use is consistent with the goals and policies of the Ukiah General Plan , the provisions of the Airport Industrial Park Planned Development Ordinance , the Ukiah Municipal Code , and the Ukiah Airport Master Plan . 2 . The proposed land use is compatible with surrounding land uses and will not be detrimental to the public's health , safety and general welfare . 3 . There is sufficient variety , creativity , and articulation to the architecture and design of the structure(s) to avoid monotony and/or a box- like uninteresting e�ernal appearance . 4 . For all land uses other than light manufacturing , there is uniqueness and an exemplary approach to the site planning , design , and architecture , consistent with the Site Planning and Design Standards contained herein , that results in a quality and sophisticated development. 5 . The Findings shall not be vague . The findings shall be sufficiently detailed to apprise a reviewing court of the basis for the action by bridging 14 the gap between the evidence and the decision-maker' s conclusions , and shall be based upon evidence contained in the administrative record . 5 . Site Planninq and Desiqn Standards - Commercial Development The following site planning and design standards are specifically adopted for the Light Manufacturing/Mixed- Use Land Use Designation . They shall apply to all commercial , professional office , low-density residential , and mixed-use development projects not involving light manufacturing/ warehousing unless it is situated along the Airport Park Boulevard street frontage . The Development Standards contained in Section " G " and the Design Standards in Section " I " of this Ordinance shall apply to the Light Manufacturing/Mixed Use designation unless superseded by the following specific standards : a . Yard Setbacks : 1 . Front: 25 feet from the Airport Park Boulevard right-of-way . Architectural features , such as bay windows , porches and landing spaces , column treatments , and similar features may extend up to two- feet into the required front yard setback. 2 . Side and Rear: The side and rear yard setbacks shall be determined in the discretionary review process . Factors that shall be considered include , but are not limited to Building Code requirements , traffic circulation , landscaping requirements , softening of the bulk and mass of structures , and compatibility with adjacent structures and land uses . 3 . Relief: Relief from the front yard setback requirements may be granted through the approval of a variance , pursuant to Chapter 2 , Article 20 of the Ukiah Municipal Code . b . Maximum Building Height : 15 1 . The maximum height of any building or structure shall be 40 feet , provided it complies with the side-slope criteria for the Ukiah Airport . 2 . Mechanical penthouse and equipment may extend an additional 10 feet beyond the maximum height provided it is adequately screened from view. 3 . Relief: Relief from the height standards may be granted through the discretionary review process if a finding is made that the proposed height is compatible with the scale and character of the development on adjacent and nearby parcels and would not have an adverse impact on the health and safety of the general public. c. Minimum Lot Area : 1 . The minimum lot area for parcels in the mixed-use area shall be determined through the subdivision and/or discretionary review process . In no case shall lots be created that are less than 20 , 000 square feet in size . d . Maximum Lot Coverage : 1 . Commercial and mixed land uses may cover up to 40 percent of a lot provided that the site planning , architecture , parking , and landscaping are consistent with the requirements of the AIP Planned Development Ordinance . 2 . Relief: Relief from the lot coverage standard may be granted through the discretionary review process provided a finding is made that the proposed lot coverage is compatible with the scale and character of the development on adjacent and nearby parcels and would not have an adverse impact on the health and safety of the general public. 16 e . Building Orientation : 1 . Buildings shall be shaped and oriented to take advantage of passive solar energy and solar collection in the winter, and to control solar cooling loads in the summer. 2 . Buildings shall be shaped and oriented to be compatible with surrounding land uses in terms of noise , visual privacy , and functionality . f. Architectural Design : 1 . Buildings shall incorporate projecting columns , exterior wainscoting , framed panels , and/or other features to provide relief to large open blank walls . 2 . Architectural features such as arches , raised and decorative parapets , decorated and flared cornices , extended eaves and overhangs , balconies , entry insets , and a variety of roof angles and pitches are required to make buildings unique and interesting . 3 . Windows shall be used to break up the mass and volume of buildings into smaller components . Buildings shall use different shaped and framed windows in a coordinated theme . Awnings and other attractive window treatments are strongly encouraged . 4 . All four elevations of buildings shall incorporate the architectural design requirements listed above in a reasonable and feasible manner. 5 . The use of strong or loud colors as the dominant building color shall not be permitted . The dominant colors used on buildings shall be subdued and earth tone in nature . Colors of buildings shall be compatible with adjoining buildings . 17 6 . Storage areas , loading docks and ramps , transformers , storage tanks , refuse collection areas , mechanical equipment, and other appurtenant items of poor visual quality shall be screened by the use of masonry walls , landscaping materials , or decorative fencing . All roof mounted electrical and mechanical equipment and/or ductwork shall be screened from view by an enclosure which is consistent with the building design . Fences exceeding six (6) feet in height may be appropriate for some commercial and industrial uses to screen the outdoor storage of building materials , supplies , construction equipment , etc. The Planning Commission may consider fences exceeding six (6) on a case-by-case basis during the review of Site Development and Use Permit applications . g . Signs 1 . The colors , materials , and lighting of every sign on a site shall be restrained and harmonious with the building and site . 2 . Freestanding signs shall be tastefully designed with an interesting base , and shall not exceed twelve feet in height from finished grade . If a freestanding sign is placed on a berm , the Planning Commission shall have the discretion to limit its height to less than twelve feet from finished grade . No pole signs are permitted . Freestanding signs shall have a decorative support base . 3 . The size and amount of signs shall generally comply with the requirements of the Ukiah Municipal Code ( UMC) . The Planning Commission shall have the discretion to reduce the size and amount of signs to something less than permitted by the U . M . C . if they make a 18 finding that the proposed size and amount of signage is out of scale with the building and too dominating on the site . 4 . Signs are not permitted on the roof or projecting above the roof of any building . 5 . Relief: Relief from the sign standards may be granted through the discretionary review process provided a finding is made that the proposed sign is compatible with the scale and character of the development on adjacent and nearby parcels and would not have an adverse impact on the health and safety of the general public . h . Pedestrian Orientation 1 . Pedestrian walkways shall be included that directly and safely link all parking areas with building entrances , off-site transportation facilities , established sidewalks , and adjacent public rights-of-way . 2 . Outdoor pedestrian spaces shall be landscaped and include such features as planters along sidewalks , pedestrian oriented signs , attractive street furniture , low-level lighting , and outdoor seating areas . 3 . Lots with frontages along the primary street shall provide a 5-foot wide meandering sidewalk located within the required front setback . The sidewalk may be located over the public utility easement . Every effort shall be made to link developments with attractive and accessible pedestrian facilities . 4 . Secondary streets accessing the rear portion of parcels shall include 5- foot wide sidewalks or alternative pedestrian facilities that link the development on the rear portion of the parcels with Airport Park Boulevard . 19 i . Lighting 1 . Exterior lighting shall be subdued and of low wattage . It shall enhance building design and landscaping , as well as provide safety and security . 2 . Exterior lighting shall not spill out and create glare on adjoining properties , and shall not be directed towards the night sky . 3 . Light standard heights shall be predicated on the lighting need of the particular location and use . Tall lighting fixtures that illuminate large areas shall be prohibited . 4 . Lighting fixtures , standards , and all exposed accessories shall be harmonious with building design , and innovative in style . 5 . All pedestrian and building access areas shall be adequately lighted to provide safety, security , and aesthetic quality , without violating number 2 above . j . Energy Conservation 1 . Passive solar orientation is required . Active solar design is strongly encouraged . 2 . Deciduous trees and/or other vegetation shall be planted on the south side of buildings whenever feasible to increase energy efficiency. 3 . Sunlight shall be used for direct heating and illumination whenever possible . 4 . Solar heating equipment need not be screened , but shall be as unobtrusive as possible and complement the building design . Every effort shall be made to integrate solar panels into the roof design , flush with the roof slope . 20 k . Outdoor Storage and Service Areas 1 . Storage areas shall be limited to the rear of a site , and shall be screened from public view with a solid fence or wall using concrete , wood , stone , brick , or other similar material . 2 . All outdoor storage areas and enclosures shall be screened , when possible , with landscaping . 3 . If trash and recycling areas are required in the discretionary review process , they shall be designed to harmonize with the building and landscaping , and shall be consistent with the size and design requirements of the Ukiah Municipal Code . I . Landscaping 1 . Landscaping shall comply with Section " I " of this Ordinance . 2 . Landscaping Plans shall include outdoor shaded sitting/resting areas for employees and the general public , unless infeasible . m . Ukiah Airport Master Plan 1 . All development within the Airport Industrial Park shall comply with the Federal Aviation Administration side slope criteria , density requirements (AB1 " Compatibility Zone = 60 persons per acre / AC- Compatibility Zone = 150 people per acre) and all other applicable provisions of the Ukiah Airport Master Plan . n . Public Utility Easements , Public Streets , and Access Driveways 1 . All Public Utility Easements , Public Streets , and Access Driveways shall comply with Section " H " of this Ordinance . 6 . Site Planninq and Desiqn Standards for Liqht Manufacturinq and Industrial Development 21 The Site Planning and Design Standards for Light Manufacturing and Industrial development are less demanding than those for commercial , professional office and mixed-use development. The lesser design standards are meant to encourage and promote light manufacturing and industrial development, particularly along the western portion of the parcels . The Following Site Planning and Design Standards shall apply to all Light Manufacturing and Industrial Development: a . Yard Setbacks : 1 . Front : 25 feet from the Airport Park Boulevard right-of-way if located along the frontage . If the development does not have frontage along Airport Park Boulevard , and is served by a private access easement , the front yard setback shall be determined in the discretionary review process . Architectural features , such as bay windows , porches and landing spaces , column treatments , and similar features may extend up to two-feet into the required front yard setback. 2 . Side and Rear: The side and rear yard setbacks shall be determined in the discretionary review process . Factors that shall be considered include , but are not limited , to Building Code requirements , traffic circulation , landscaping requirements , softening of the bulk and mass of structures , and compatibility with adjacent structures and land uses . 3 . Relief: Relief from the front yard setback requirements may be granted through the approval of a variance . b . Maximum Building Height : 1 . The maximum height of any building or structure shall be 50 feet , provided it complies with the side-slope criteria for the Ukiah Airport . 22 2 . Mechanicai penthouse and equipment may extend an additional 10 feet beyond the maximum height provided it is adequately screened from view. 3 . Relief: Relief from the height standards may be granted through the discretionary review process if a finding is made that the proposed height is compatible with the scale and character of the development on adjacent and nearby parcels and would not have an adverse impact on the health and safety of the general public . c. Minimum Lot Area : 1 . The minimum lot area for light manufacturing and industrial development parcels in the mixed-use area shall be determined through the subdivision and/or discretionary review process . In no case shall lots be created that are less than 20 , 000 square feet in size . d . Maximum Lot Coverage : 1 . Light manufacturing and industrial land uses may cover up to 60 percent of a lot provided that the site planning , architecture , parking , and landscaping are consistent with the requirements of the AIP Planned Development Ordinance . 2 . Relief: Relief from the lot coverage standard may be granted through the discretionary review process provided a finding is made that the proposed lot coverage is compatible with the scale and character of the development on adjacent and nearby parcels and would not have an adverse impact on the health and safety of the general public. e . Building Orientation : 1 . Buildings shall be shaped and oriented to take advantage of passive solar energy and solar collection in the winter, and to control solar cooling loads in the summer. 23 2 . Buildings shall be shaped and oriented to be compatible with surrounding land uses in terms of noise , visual privacy , and functionality . f. Architectural Design : 1 . Buildings shall incorporate projecting columns , exterior wainscoting , framed panels , and/or other features to provide relief to large open blank walls . 2 . The use of strong or loud colors as the dominant building color shall not be permitted . The dominant colors used on buildings shall be subdued and earth tone in nature . Colors of buildings shall be compatible with adjoining buildings . g . Signs 1 . The colors , materials , and lighting of every sign on a site shall be restrained and harmonious with the building and site . 2 . Freestanding signs shall be tastefully designed with an interesting base , and shall not exceed eight feet in height from finished grade . If a freestanding sign is placed on a berm , the Planning Commission shall have the discretion to limit its height to less than eight feet from finished grade . No pole signs are permitted . 3 . The size and amount of signs shall comply with the requirements of the Ukiah Municipal Code ( UMC) . The Planning Commission shall have the discretion to reduce the size and amount of signs to something less than permitted by the U . M . C . if they make a finding that the proposed size and amount of signage is out of scale with the building and too dominating on the site . 4 . Signs are not permitted on the roof of any building . 5 . Relief: Relief from the sign standards may be granted through the discretionary review process provided a finding is made that the proposed 24 sign is compatible with the scale and character of the development on adjacent and nearby parcels and would not have an adverse impact on the health and safety of the general public. i . Lighting 1 . Exterior lighting shall be subdued . It shall enhance building design and landscaping , as well as provide safety and security . 2 . E�erior lighting shall not spill out and create glare on adjoining properties , and shall not be directed towards the night sky . 3 . Light standard heights shall be predicated on the lighting need of the particular location and use . Tall lighting fixtures that illuminate large areas shall be prohibited . k. Outdoor Storage and Service Areas 1 . Storage areas shall be limited to the rear of a site , and shall be screened from public view with a solid fence or wall using concrete , wood , stone , brick, or other similar material . 2 . All outdoor storage areas and enclosures shall be screened , when possible , with landscaping . I . Landscaping 1 . Landscaping shall generally comply with Section " I " of this Ordinance , although a lesser amount of landscaping may be approved depending upon the scale , intensity , and visibility of the development. m . Ukiah Airport Master Plan 1 . All development within the Airport Industrial Park shall comply with the Ukiah Municipal Airport Master Plan . n . Pedestrian Orientation 25 1 . Pedestrian walkways shall be included that directly link all parking areas with building entrances , off-site transportation facilities , established sidewalks , and adjacent public rights-of-way . 2 . Lots with frontages along the primary streets shall provide a 5-foot wide meandering sidewalk located within the required front setback. The sidewalk may be located over the public utility easement. Every effort shall be made to link developments with attractive and accessible pedestrian facilities . 3 . Secondary streets accessing the rear portion of parcels shall include 5-foot wide sidewalks or alternative pedestrian facilities that link the development on the rear portion of the parcels with Airport Park Boulevard . G . NUISANCES 1 . No lot shall be used in such a manner as to create a nuisance to adjacent parcels . Proposed uses shall comply with the performance criteria outlined below. a . All activities involving the storage of flammable and explosive materials shall be provided with adequate safety devices against the hazard of fire and explosion by adequate fire-fighting and fire suppression equipment and devices standard in industry. All incineration is prohibited . b . Devices which radiate radio-frequency energy shall be so operated as not to cause interference with any activity carried on beyond the boundary line of the property upon which the device is located . c. The maximum sound level radiated by any use of facility , when 26 measured at the boundary line of the property upon which the sound is generated , shall not be obnoxious by reason of its intensity or pitch , as determined by standards prescribed in the Ukiah Municipal Code and/or City General Plan . d . No vibration shall be permitted so as to cause a noticeable tremor beyond the property line . e . Any use producing emissions shall comply with all the requirements of the Mendocino County Air Quality Management District . f. Projects involving the use of toxic materials or hazardous substances shall comply with all Federal , State , and all local Laws and regulations . 2. Prohibited Uses or Operations Industrial uses such as petroleum bulk stations , cement batching plants , pulp and paper mills , lumber mills , refineries , smelting plants , rendering plants , junk yards , auto wrecking , and similar "heavy industrial" uses which typically create external and environmental effects are specifically prohibited due to the detrimental effect the use may have upon the general appearance , function , and environmental quality of nearby uses . H . DEVELOPMENT STANDARDS The following standards have been established to ensure compatibility among uses and consistency in the appearance and character of development . These standards are intended to guide the planning , design , and development of both individual lots and the 27 entire Airport Industrial Park . Projects shall be reviewed on a case-by-case basis for high quality design , efficient function , and overall compatibility with surrounding land uses . 1 . Minimum Lot Requirement The minimum lot area shall be 20 , 000 square feet . Each lot shall have a minimum frontage of 100 feet on a public street . Except for lots fronting on Airport Park Boulevard , or other public streets shown on the Land Use Map , access easements to a public street may be authorized in lieu of public street frontage in the discretion of the appropriate decision-maker and with the approval of the City Engineer. Proposed access easements shall be consistent with the standards contained in Table 4- 1 . The Planning Commission may approve a public street frontage of less than 100 feet for lots located on cul-de-sacs , street curves , or having other extraordinary characteristics . 2 . Maximum Lot Coveraqe No more than 40 percent of the lot shall be covered by buildings or structures . Above ground parking lots and landscaping areas shall not be included in the calculation of lot coverage . Industrial land uses may cover a maximum of 60 percent of a lot provided that the site planning , architecture , parking , and landscaping are consistent with the requirements of the AIP Planned Development Ordinance . 3 . Minimum Buildinq Setbacks All buildings and structures shall be setback from the property line a minimum of 25 feet along the entire street frontage . Lots abutting U . S . Highway 101 shall maintain a minimum setback of 60 feet from the property line adjacent to the freeway . Side yard setbacks shall be determined in the Site Development or Use Permit review process . 28 4. Maximum Buildinq Heiqht The maximum height of any building or structure shall be 50 feet. Mechanical penthouse and equipment may extend an additional 10 feet beyond the maximum building height . 5. Ukiah Airport Master Plan All development within the Airport Industrial Park shall comply with the Federal Aviation Administration side slope criteria , density requirements (AB1 " Compatibility Zone = 60 persons per acre / AC= Compatibility Zone = 150 people per acre) and all other applicable provisions of the Ukiah Airport Master Plan . 6. Screeninq Storage areas , loading docks and ramps , transformers , storage tanks , refuse collection areas , mechanical equipment , and other appurtenant items of poor visual quality shall be screened by the use of masonry walls , landscaping materials , or decorative fencing . All roof mounted electrical and mechanical equipment and/or ductwork shall be screened from view by an enclosure which is consistent with the building design . Fences exceeding six (6) feet in height may be appropriate for some commercial and industrial uses to screen the outdoor storage of building materials , supplies , construction equipment , etc. The Planning Commission may consider fences exceeding six (6) on a case-by-case basis during the review of Site Development and Use Permit applications . 7 . Public Utilitv Easement All lots shall provide a 5-foot easement in the required front setback for the provision of utilities . 8 . Sidewalk Requirements 29 Lots with frontages along the primary street shall provide a 5-foot curvilinear sidewalk located within the required front setback. The sidewalk may be located over the public utility easement. Every effort shall be made to link developments with attractive and accessible pedestrian facilities . 9 . Bicvcle Lanes Class III Bicycle lanes shall be provided on all primary streets according to CalTrans standards . 10 . Development Inteqration Every effort shall be made to " master plan" development within the Airport Industrial Park . Applicants shall be encouraged to coordinate development proposals to ensure compatible architectural themes , high quality site planning , efficient and functional traffic circulation , coordinated pedestrian circulation , and compatible land uses . 11 . Required Public Streets Lot line adjustments , parcel maps , tentative and final subdivision maps , and Site Development and Use Permits shall not be approved , unless public streets identified on the Land Use Map serving the parcels covered by the lot line adjustment , map or permit have been or will be dedicated to the City of Ukiah upon approval of the lot line adjustment, map or permit. 12 . Street Width Standards The following street standards have been established by the Ukiah Department of Public Works . All primary and secondary streets shall be designed and constructed in accordance with these standards : Table 41 : Minimum Street Standards Airport Park Boulevard and Commerce Drive 30 Primary Secondary Access Easement 1 . Right-of-way 66 feet 44 feet 32 feet 2 . Pavement 64 feet 40 feet 30 feet a . travel lanes (2) 14 feet 20 feet 15 feet b . left turn lane 12 feet 12 feet 3 . Curbs (both sides) 1 foot 1 foot 4 . Cul-de-sac (turn-arounds) 100 feet diameter 5 . Curb Returns Radius 35 feet 35 feet 13. Access Drivewavs and Deceleration Lanes a . Every effort shall be made to minimize access driveways along Airport Park Boulevard . All driveway and intersection radii shall be designed to accommodate heavy truck turning movements , consistent with the requirements of the City Engineer. b . Every effort shall be made to design common driveways for individual developments . c. No Talmage Road access shall be permitted for the parcel or parcels located at the southeast corner of Talmage Road and Airport Park Boulevard . d . All major driveways , as determined by the City Engineer, shall have left turn pockets in the median area where feasible . e . Deceleration and acceleration lanes shall not be required unless the City Engineer determines they are necessary to ensure safety and efficient traffic flow. 14. Minimum Parkinq and Loadinq Requirements a . No loading or unloading shall be permitted on the street in front of the building . A sufficient number of off-street loading spaces shall be 31 provided to meet the needs of the approved use . Adequate apron and dock space also shall be provided for truck maneuvering on individual lots . b . The number of entrance/exit driveways shall be limited to one per every 100 feet of street frontage with a maximum curb cut of 40 feet . The Planning Commission may relax these standards when a comprehensive plan for an entire block has been prepared and presented to the City Planning Commission for review and approval . c. Adequate off-street parking shall be provided to accommodate the parking needs of employees , visitors , and company vehicles . The minimum number of off-street parking spaces shall generally be provided according to the requirements of the Ukiah Municipal Code . d . The Planning Commission may deviate from the parking requirements contained in the Ukiah Municipal Code on a case-by-case basis . Any deviation must be supported by findings related to a unique use , such as a Mixed-use development , or use not specifically described in the Ukiah Municipal Code , and findings that otherwise demonstrate no on-street parking congestion will result . 15. Siqnaqe Except as indicated elsewhere in this Ordinance , building identification and other signs shall generally comply with the sign regulations for industrial , commercial and office land uses contained in the Ukiah Municipal Code . All proposed development projects shall include a detailed sign program . I . DESIGN GUIDELINES 32 The following guidelines shall be used by the Planning Commission when approving a Site Development or Use Permit to ensure high quality design , and the coordination and consistency of development . 1 . Landscapinq and Open Space a . A comprehensive landscape plan shall be submitted for review and approval as a part of the Site Development or Use Permit process . a . Existing trees shall be retained whenever possible . c. A variety of tree species shall be used that provides diversity in form , texture , and color. d . Landscaping at corners should be arranged to maintain traffic visibility . e . Landscaping along an entire street frontage should be coordinated to achieve a uniform appearance . f. Landscaping shall be proportional to the building elevations . g . Landscape plantings shall be those which grow well in Ukiah's climate without extensive irrigation . Native species are strongly encouraged . h . All landscape plantings shall be of sufficient size , health and intensity so that a viable and mature appearance can be attained in three years . I . Deciduous trees shall constitute the majority of the trees proposed along the south and west building exposures ; non-deciduous street species shall be restricted to areas that do not inhibit solar access . j . Parking lots with twelve ( 12 ) or more parking stalls shall have a tree placed between every four (4) parking stalls within a continuous linear planting strip , rather than individual planting wells , unless clearly infeasible . Parking lot trees shall primarily be deciduous species , and shall be designed to provide a tree canopy coverage of 50 percent over 33 all paved areas within ten years of planting . Based upon the design of the parking lot , a reduced number of trees may be approved through the discretionary review process . k. Parking lots shall have a perimeter planting strip with both trees and shrubs . I . Parking lots with twelve ( 12) or more parking stalls shall have defined pedestrian sidewalks or marked pedestrian facilities within landscaped areas and/or separated from automobile travel lanes . Based upon the design of the parking lot , and the use that it is serving , relief from this requirement may be approved through the discretionary review process . m . Street trees may be placed on the property proposed for development instead of within the public right-of-way if the location is approved by the City Engineer, based upon safety and maintenance factors . n . All new developments shall include a landscaping coverage of 20 percent (20 %) of the gross area of the parcel , unless because of the small size of a parcel , such coverage would be unreasonable . A minimum of 50 percent (50% ) of the landscaped area shall be dedicated to live plantings . o . Landscaping Plans shall include an automatic irrigation system . p . All required landscaping for commercial development projects shall be adequately maintained in a viable condition . q . The Planning Director, Zoning Administrator, Planning Commission , or City Council shall have the authority to modify the required elements of a Landscaping Plan depending upon the size , scale , intensity , and location of the development project . 2. Orientation and Location of Buildinqs 34 a . The location of buildings shall be coordinated with other buildings and open space on adjacent lots , and should include design elements , oriented to pedestrian usage , such as , linked walkways and sidewalks . b . Buildings should be sited to preserve solar access opportunities , and should include passive and active solar design elements . c . Buildings should be oriented to minimize heating and cooling costs . d . Buildings should be creatively sited to provide open views of the site and surrounding environment. e . Buildings shall not be sited in the middle of large parking lots . 3 . Architectural Desiqn a . Individual projects shall exhibit a thoughtful and creative approach to site planning and architecture . b . Projects shall be designed to avoid the cumulative collection of large structures with similar building elevations and facades . c . Buildings shall be limited in height, bulk , and mass , and shall be designed to avoid a box-like appearance . 35 4. Buildinq Exteriors a . Colors and building materials shall be carefully selected , and must be compatible with surrounding developments , and shall be finalized during the Site Development or Use Permit process . b . The Planning Commission may permit exterior walls of architectural metal where it is compatible with adjacent structures , and the overall appearance and character of the Airport Industrial Park . 5. Liqhtinq a . A lighting plan shall be submitted for review and approval with all Site Development and Use Permit applications . All lighting plans shall emphasize security and safety , and shall minimize energy usage . b . Lighting for developments shall include shielded , non-glare types of lights . c. Lighting shall not be directed towards Highway 101 , the Ukiah Municipal Airport, adjacent properties , or upwards towards the sky . 6 . Desiqn Amenities a . Bicycle parking facilities shall be provided near the entrance to buildings . One ( 1 ) bicycle space shall be provided for every ten ( 10) employees , plus one ( 1 ) space for every fifty (50) automobile parking spaces . b . Fountains , kiosks , unique landscape islands , outdoor sitting areas , and other quality design amenities are encouraged . J . CIRCULATION PLAN The Circulation Plan for the Airport Industrial Park is illustrated on the attached Exhibit " B" . As shown , the plan includes points of access at Talmage Road at the north , Hastings Avenue at the northwest , and Airport Road at the southwest . In lieu of the originally envisioned southern access road (Airport Park Boulevard to Norgard Lane) an emergency access is provided through the airport to a future gated encroachment along the southern portion of Airport Road . Internal access includes an extension of Airport Road from the west into the southern portion of the site ; Airport Park Boulevard from Talmage Road on the north , extending south to intersect with the Airport Road extension ; and Commerce Drive from west to east in the northern portion of the AIP . All streets within the AIP shall be public. Property owners of parcels with frontage along the railroad right-of-way are encouraged to plan for possible future use of the railroad . K. DISCRETIONARY REVIEW The discretionary permit review process for development projects within the Airport Industrial Park (AIP) is the same as for discretionary permits elsewhere in the City . As articulated in Section 9 of this ordinance , a Site Development Permit or Use Permit is required for development projects proposed in the AIP . 1 . Site Development Permits and Use Permits a . As articulated in Section 9 above , development projects within the Airport Industrial Park are subject to the Site Development or Use Permit process , depending upon the proposed use and its location . A Site Development Permit shall not be required for any development proposal requiring a Use Permit . Within the Use Permit review process , all site development issues and concerns shall be appropriately analyzed . b . All Major Use Permits , Variances , and Site Development Permits for proposed developments within the Airport Industrial Park require City Planning Commission review and action . Minor Use Permits , Variances , and Site Development Permits shall be subject to Zoning Administrator review and action . c. Decisions on Site Development and Use Permits made by the City Planning Commission and Zoning Administrator are appealable to the City Council pursuant to Section 9266 of the Ukiah Municipal Code . d . Major modifications to approved Site Development Permits and Use Permits , as determined by the Planning Director, shall require the filing of a new application , payment of fees , and a duly noticed public hearing before the Planning Commission . Minor modifications to approved Site Development Permits and Use Permits , as determined by the Planning Director shall require the filing of a new application , payment of processing fees and a duly noticed public hearing before the City Zoning Administrator. e . The Planning Commission' s decision on major modifications to an approved Site Development Permit , Variance or Use Permit is appealable to the City Council . The Zoning Administrator's decision on minor modifications to an approved Site Development Permit, Variance or Use Permit is appealable� directly to the City Council . 2 . Buildinq Modifications a . E�erior modifications to existing buildings shall be designed to complement and harmonize with the design of the existing structure and surrounding developments . b . A Site Development Permit shall be required for all substantial exterior modifications to existing structures , site design elements , and landscaping within the Airport Industrial Park. The application procedure shall be that prescribed in Article 20 the Ukiah Municipal Code . Section Thirteen Whenever a use is not listed in this Planned Development Ordinance as a permitted or allowed use in any of the land use designations , the Planning Director shall determine whether the use is appropriate in the land use designation where the subject property is situated , and make a decision as to whether or not it is an allowed or permitted land use . In making this determination , the Planning Director shall find as follows : 1 . That the use would not be incompatible with existing nearby land uses , or the allowed and permitted land uses listed for the particular land use designation . 2 . That the use would not be detrimental to the continuing development of the area in which the use would be located . 3 . That the use would be in harmony and consistent with the purpose and intent of the Airport Industrial Park Planned Development Ordinance and Ukiah General Plan . 4 . In the case of determining that a use not articulated as an allowed or permitted use could be established with the securing of a Use Permit , the Planning Director shall find that the proposed use is similar in nature and intensity to the uses listed as allowed uses . All determinations of the Planning Director regarding whether a use can be allowed or permitted in any land use designation within the Airport Industrial Park shall be final unless a written appeal to the City Council , stating the reasons for the appeal , and the appeal fee , if any , established from time to time by City Council Resolution , is filed with the City Clerk within ten ( 10) days of the date the decision was made . Appeals may be filed by an applicant or any interested party . The City Council shall conduct a duly noticed public hearing on the appeal in accordance to the applicable procedures as set forth in this chapter. At the close of the public hearing , the City Council may affirm , reverse , revise or modify the appealed decision of the Planning Director. All City Council decisions on appeals of the Planning Director's actions are final for the City of Ukiah . Section Fourteen This Ordinance shall be published as required by law and shall become effective thirty (30) days after it is adopted . Introduced by title only on December 4 , 2013 by the following roll call vote : AYES : NOES : ABSENT : ABSTAIN : Passed and adopted on by the following roll call vote : AYES : NOES : ABSENT : ABSTAIN : ATTEST : Kristine Lawler, City Clerk Doug Crane , Mayor ir 1� � �ri I �rk L nd � i r� fii�r� + l �� � ,-� � �__.__, , �-.�--�.�_ -� �� r--_. � � �� i �.�� _ � � �°---�... �' 't ` �� , , , —J 1 ' ' . ��-- t .--",T`°-/ p��,! ' �� `� ' ' r �� h� `� > _ . ^ �..+ . f• `� t f � ,.�� � �r�---���(--�-% ; J -� �__.,'._1'�_ ; f�� tr�.�J( �\�� 7`� � �`�';�� �� r " � � �1`�-~--(jf . . � J��f'f .. . ��"`�e�.�_ `���' � � �� � � ' � � � ,f i �-- ,t�r'"� � � � � �`� ���,__� � __����._ti� �' -.�-�f `� , / � � .. .. �y'�`^�..� ... .. . ��" 445�, d 4 :,` . .. . JJ� .. ......... ...... �.. 1 l ���� ` ---:..�,� l ` � �� �a d�,�� � �> .t '� 4�.5�,,. � Y . r�l � ��°��`� 4�°-�-� y� J .��`� � � � � I ,� �._.�a ��N.-��--� .�..�._...____-�.. - "� ���f�s�����i , ���� ; J � / �}`jj�hw�y i � ��mm�i°�i�l..�.� � � ;` '� R�tail �/� C�rttim�rci�i _..-----� r----�- J�� lndtastri�l � �_____-__---_--�---- _.�--------°;'`~--_-°�-�."`..�,- ._ � 1 �l lndU tr j� +---�-~ ��~ ' �' Aut� j mer�i�i � , \ l� � -�-�----"'" � � f � , � �— J ght M� uPac��ring� � --- �°--�.� f �ixed Us� ' ��\ � i , � ( _� ; �I i i 1 � � _� ! � � �-�--n----��--i —�-� � � Foet fl -012.5 825 1,&50 2,475 3,306 i EXHIBIi' "B" AfRPORT INOUSTRfAL PARK . CIRCULATlON PLAN TALM1IAGE ROAO i—�� ' 4.w ' i.. •;.� ,�� Y O � ,Q �, � � � � . Q� . � . � ' � . , O 9 � �. Q � . . ; . con�n+eace oarve �� � `� i M ; �0 � .p `0 \� . `Q i i tiO " l �� i ;O . AIRpORT ROAD � t� i �� EQ !� a � � �' ` � 1 • � I i � �� t 1 '�� i � e I. i� � �O �� . '� AIIiPOqT PAIIK OLVO "' � ' �� `' ' t �'I � �� I�B �Q I I ` � l� I�� �0 � EMEHGENCYVENIGLE � � � ` rI �' � ACCQ55 FROtS AIRPORT � � � � ° � I 1 � ,� � ' t� .. O I . .. , I � � • i 40 1 1 . � 1 � I . �l�ta�hrrlent �i-` 1 1 $.2�B � 0_CK � fdASSOCIATES A R C H I T E C T U R E & P L A N N I N G Ukiah Costco New Warehouse and Fuel Station Ukiah , California Owner/ Costco Wholesale Applicant 9 Corporate Park Suite 230 Irvine , California 92606 Attn : MichaelOkuma (714) 978-5023 Contact David Babcock & Associates Person 3581 Mt. Diablo Blvd . , Suite 235 Lafayette, CA 94549 Attn : David Babcock (925) 283-5070 Site Information ' Project Address : Airport Park Blvd . , Ukiah , CA Assessor Parcel Numbers : Portions of 180- 110-08 , 180- 110-09 , 180- 110- 10 , 180-080-57 , 180-080-58 , 180-080-59 , 180-080-62 , 180-080-63 , 180-080-64 , 180-080-65 , 180-080-66 and 180-080-67 Site Area : ± 15 . 30 acres (Costco) General Plan : Master Plan Area (MPA) Current Zoning : PD - "Airport Industrial Park" Existing Airport Industrial Park Land Use Designation : 01 .30. 13 3581 Mt. Diablo Blvd . , Suite 235 , Lafayette, CA 94549 (925) 283-5070 Fax (925) 283-4823 " Light Manufacturing / Mixed- Use" " Industrial / Automotive Commercial " Proposed Airport Industrial Park Land Use Designation : Retail Commercial Proposed General Plan : Master Plan Area (no change) Site Description The site is located within the City of Ukiah along Highway 101 . Access to the site is _ from Talmage Road to Airport Park Blvd which runs along the western property line . The warehouse can also be accessed from South State Street to Hastings to Commerce to Airport Park Boulevard . The existing Ken Fowler Auto Center is immediately adjacent at the north end of the property. The Mendocino Brewing Company is located south of the property. The site is currently vacant and undeveloped . Project Proposal The proposed project consists of the following components : 1 . The construction of a new approximately 148 , 000 square foot Costco Wholesale warehouse with 16 of the 20 pumps fuel facility to be constructed initially and remaining as needed on approximately 15 . 30 acres . Add that the approval of 20 pumps is being requested . Proposing to construct 16 pumps now and possibly add 4 additional in the future . 2 . Parcel consolidation and reconfiguration to create the Costco Project parcel and non-Costco Project parcels . 3 . A Site Development Permit for the proposed building and site layout. 4 . Rezoning to amend the Airport Industrial Park land Use Map to change the Costco Project parcel from " Industrial / Automotive Commercial " and " Light Manufacturing / Mixed - Use" to " Retail Commercial" . The project would be constructed in one phase and would include a new Costco warehouse , Costco fuel station , and new site amenities including landscaping and parking lot. We anticipate the Ukiah Costco warehouse and gas station will employ approximately 175-to 200 people . Site The project site is currently unimproved and vacant. The Costco project will provide site Page 2 of 9 and perimeter landscaping that exceeds current City of Ukiah requirements . Drought tolerant shrubs and grasses and a variety of shade trees will be used throughout the parking field and along the street that are appropriate to the region . The site is bordered on the south and west sides by existing drainage areas that drain under US 101 via existing culverts . These culverts constrict the drainage flow of the drainage area , making them act as a regional storm water detention basin . A detailed hydrology and hydraulic analysis of this area indicates the proposed development will have less than significant impacts on the out flow of the existing culverts or on the stage elevation of the drainage area . Additionally this site is required to implement storm water low impact development methods as described in the City's adopted MS4 Permit. These methods include but are not limited to extended detention , retention/infiltration , bio- filtration , and proprietary filtration methods . Implementing the requirements of this permit as mentioned above will provide an ecologically responsive method of on -site storm water treatment. Pedestrian pathways from the new warehouse to the public right-of-way will insure connectivity throughout the site and easy access from adjacent streets and neighboring properties . The project provides generously sized parking stalls that are larger than the minimum requirements to provide members with easier accessibility to vehicles . Parking and site lighting will incorporate the use of cutoff lenses to keep light from overflowing beyond the project boundaries and will use " night-sky" friendly fixtures . Costco Warehouse The total proposed retail area for the Costco store would be approximately 148 , 000 square feet. Costco's goal of simple elegance and efficiency creates a design that has set the standard for large retail facades with variety of massing and appropriate materials . The building provides a design that is harmonious in texture and mass throughout and reflects a contemporary style . By combining concrete masonry block and architectural metal panels , Costco is able to minimize the visual impact of a large retail warehouse . The use of design techniques such as the orientation of the metal panel , landscaping , the incorporation of varying parapet cap depths and heights Costco can successfully break the long elevations both horizontally and vertically. The technique of breaking a long elevation into smaller elements is used to create a more pedestrian-friendly scale . The proposed colors are warm natural earth tones which will relate to the neighborhood and some of the more recent buildings in the area . The building entrance , located on the "skew" of the floor plan , provides Costco and the city with the opportunity to make a unique " Ukiah " statement. This is where the culmination of time tested details are blended together to give this location a look and feel that is specific to the context of the surrounding area and community . The building orientation will position the most dynamic design features facing the Highway 101 corridor. When approaching from the south , this location will present itself as the welcoming feature to ' the city. A design that is sustainable , environmentally conscious , without the need of over indulged ornamentation is a statement that fits the feel of Ukiah . Building signage would be the Costco red and blue corporate colors . The signage is Page 3 of 9 scaled appropriately to the mass of the building elevations so as to not overwhelm but to reinforce the brand that Costco has established . The warehouse wall signage will consist of externally illuminated reverse pan channel letters and the gas station signage will also be externally illuminated . Lighting fixtures would be located on the building approximately every 40 feet around the exterior of the building for proper safety and security. Exterior lighting consists of inetal halide light fixtures mounted on 36'-7" poles . Costco has found that the combination of light fixture and pole height reduce energy consumption while providing proper illumination of the site . The parking lot lighting will consist of two 875 watt metal-halide bulbs with the fixtures being of a "shoe-box" style . The warehouse has one customer entrance to the main Costco store located at the southeast corner. The Ukiah Costco will include a bakery, pharmacy, optical center, hearing aid testing center, food court, and a photo center along with the sales of over 4 , 000 retail products . The Tire Center is an approximately 5 ,478 square-foot attached building with member access through the inside of the main Costco building and includes retail tire sales and a tire installation facility. The installation facility has four bays that face toward the south to allow Costco employees to drive the cars into the installation facility. The truck loading dock would be located at the north edge of the building within the building area . It would face east and include four individual side-by-side loading bays . The bay doors would be equipped with sealed gaskets to limit noise impacts . A low screen wall would be constructed along the edge of the dock, facing north , to help mitigate visual impacts . In addition , because the docks all face in one direction , any potential noise would be channeled to �the east toward the highway . The warehouse also has a delivery door located on the north side of the building to receive bread deliveries and merchandise from smaller vendors . A transformer and two trash compactors would also be located along the north edge of the building . Dense landscape material and mounding will provide the necessary screening to this area (see Landscape Plan) . An outdoor staff " break" area is proposed adjacent to the truck loading dock along the north edge of the warehouse that can be monitored from the street for safety. Gas Station The gas station will include a 2 , 816 square foot canopy and will be located in the southeast corner of the site adjacent to Highway 101 . A 75 square foot controller enclosure will be located on the north side of the fuel station to house the control equipment for the gas station . It will be built with steel walls and finished with paint to match the warehouse building colors . There will be four covered fueling bays , each with two gas pumps which could fuel two cars each . The gas station will thus have fueling capacity for 16 cars at a time . The fueling station will also have eight stacking lanes which will allow 40 cars to wait for pumps at any given time in addition to the 16 at the Page 4 of 9 fueling pumps . The pumps are fully automated and self-serving for Costco members only, with a Costco attendant present to oversee operations and assist members with problems . Three underground fuel tanks will also be installed at the northern edge of the gas station . Landscaping will run along the north , screening both controller and air separator tank . Lights will be semi-recessed into the canopy and provide both lighting during operating hours and a lower level of security lighting after hours . Costco Operations Costco Wholesale is a membership-only retail/wholesale business , selling high quality - national brands and private label merchandise for commercial and personal use . The warehouse hours are anticipated to be : Monday through Friday from 10 : 00 am to 8 : 30 pm , Saturday from 9 : 30 am to 6 : 00 pm , and Sunday from 10 : 00 am to 6 : 00 pm . The fuel facility operates daily from 6am to 10pm . Costco anticipates an average of about 10 trucks delivering goods on a typical weekday. The trucks range in size from 26 feet long for single-axle trailers to 70 feet long for double-axle trailers . Receiving time is from 3 : 00 a . m . to 2 : 30 p . m . , averaging 2 to 3 trucks per hour, with most of the deliveries completed before the 10 : 00 a . m . opening time . Deliveries to the warehouse are made primarily in Costco trucks from its freight consolidation facility in Tracy, California . We estimate that fuel will be delivered to the gasoline facility in two trucks per day. The fuel trucks will come from Highway 101 to Talmage Road and travel south to the project along Airport Park Blvd . The largest fuel trucks are approximately 65 feet long . While delivering the fuel , the truck will be parked over the underground tanks located on the north side of the gas facility. The truck will not block access to any of the sixteen fueling positions . The gas facility is located at the most remote area of the Costco parcel with accessibility which is specifically designed to avoid traffic and queuing conflicts with the warehouse . In order to open and operate the gas facility, Costco will have to meet requirements of local , state and federal regulators and agencies , including the City Fire Department, the County Department of Environmental Health -- Hazardous Materials Division ( Hazardous Materials/Underground Tank Permit) , the Air Quality Management District, the State Water Resources Control Board , the California Environmental Protection Agency, and the United States Environmental Protection Agency. One of these requirements , for example , may be a Spill Prevention Countermeasure and Control Plan to prevent runoff of petroleum product spills into nearby waterways and/or water detention facility. The tire center typically will receive shipments of tires one to two times per week in single- or double-trailer trucks of up to 70 feet in length , and the same delivery truck will pick up old tires for recycling . Their typical routing will be from Highway 101 via the Page 5 of 9 same routes as the warehouse and gas delivery trucks . Deliveries to and pickups from the tire center will be scheduled for pre-opening hours , typically about 6 : 00 a . m . In an average week , a total of approximately 80 to 100 trucks will call upon the Costco warehouse , tire center and gas facility combined . Objectives of the Proposed Project : The proposed project has been designed to meet a series of objectives : • Provide a Costco facility on a site with good access in a central location within the trade area . - • Provide a Costco facility in a location that is convenient for its members and employees to travel to work . • Increase the number of employees and contribute to the local job/housing balance . • Provide a Costco facility with a state-of-the-art warehouse to better serve Costco' s members in the greater Ukiah area . • Enhance the area with an economically viable development which is architecturally designed to be sensitive to the Ukiah community and compatible with Costco's needs for a new warehouse . • Contribute to the City' s tax base . • Design a project consistent with the City's General Plan and Zoning Ordinance . • Expand the space available for integrated retail sales of goods and services in the City of Ukiah . • Design a site plan that minimizes circulation conflicts between automobiles and pedestrians . • Plan and design for public transit access . Energy - Efficient Project Components In an effort to keep operating costs low, Costco will incorporate many energy saving measures when constructing a new facility. Below are some of the significant practices that Costco currently incorporates into new buildings that help conserve energy and other natural resources : Page 6 of 9 • Parking lot light standards are designed in order to provide even light distribution , and they utilize 20 % less energy compared to a greater number of fixtures at lower heights . The use of inetal halide lamps provide a color-corrected white light and a higher level of perceived brightness with less energy than other lamps such as high pressure sodium . • New renewable building materials are typically extracted and manufactured within the region . • The use of pre-manufactured building components , including structural framing and metal panels , help to minimize waste during construction . • Pre-manufactured metal wall panels with insulation carry a higher R-Value and greater solar reflectivity to help conserve energy. Building heat absorption is further reduced by a decrease in the thermal mass of the metal wall when compared to a typical masonry block wall . • Costco uses a reflective roof material to produce lower heat absorption and thereby lowering energy requirements during the hot summer months . This roofing material meets the requirements for the EPA's Energy Star energy efficiency program . • The warehouse includes over 200 skylights placed strategically throughout the metal roof. Photo sensors are placed at various locations on the roof as well as inside a number of skylights to accurately measure the amount of natural light entering the building . Interior warehouse lighting is reduced from 100% to 66 % to 33 % to 0 % , based on daylight contribution through the skylights . Daylight is measured by exterior and interior photo sensors . This program allows lights to automatically shut off when they are not needed . Lighting is controlled by the overall project energy management system which utilizes high-efficiency lighting and ballasts (pulse start Ceramic Metal Halide HID) and bi- level switching for fluorescent fixtures . • Costco has utilized alternative sources of energy that are cost effective within the market for their warehouses . Costco is evaluating the use of solar energy for this warehouse and has not determined whether it will install solar panels as part of the initial building construction . Costco will design the roofing structure to accommodate the additional structural load of the solar panels to allow for the flexibility for possible future installation . • Tree plantings within the parking field will achieve a 50% shading of the pavement area within 15-years . . The proposed tree shading will serve to reduce summer heat gain within the parking field . • A substantial amount of the proposed plant material for the new site is native drought tolerant and will use less water than other common species . • The irrigation system includes the use of deep root watering bubblers for parking lot trees to minimize usage and ensure that water goes directly to the intended planting areas . Page 7 of 9 r V • Providing pedestrian connections to public transit and alternative parking scenarios , such as preferred parking for carpools . • Encourage employee carpooling , and bicycle commuting through employee incentives . • Storm water management plans designed to maintain quality control and storm water discharge rates . • Utilize light color roofing materials to reduce heat island effect . • Use of native species vegetation and drip irrigation systems greatly reduces potable water consumption . • Achievement of a 40 % decrease and water savings over U . S . standards by using high efficient restroom fixtures . • Building envelopes are all insulated to meet or exceed current energy code requirements . • Commissioning of inechanical systems . • HVAC comfort systems are controlled by a computerized building management system to maximize efficiency . • HVAC units are high efficiency direct ducted units . • HVAC units have phased out the use of HCFC ' s completely . Long before the Montreal Protocol timeline . • Parking lot and exterior lights are controlled by a photo sensor and time clock . • Lighting is controlled by the overall project energy management system . • Utilize high -efficiency light source and ballasts ( pulse start Ceramic Metal Halide HID ) and bi - level switching for fluorescent fixtures . • Energy efficient Transformers . Square D Type EE transformers . • Use of variable speed motors on make - up air units and booster pumps . • Gas water heaters are direct vent and 94 % efficient or greater . Page 8 of 9 f • Utilize reclaim tanks to capture heat released by refrigeration equipment to heat domestic water in lieu of ejecting heat to the outside . • Main Building structure is a pre -engineered system that uses 100 % recycled steel materials and is designed to minimize the amount of material utilized . • Roof material is 100 % recycled standing seam metal panel , designed to maximum efficiency for spanning the structure . • Exterior skin follows the same principle , Metal is 100 % recycled . • When masonry and concrete is utilized , the materials purchased are local to the project minimizing the transportation and impact to local road networks . • Construction waste is recycled whenever possible . • Floor sealant is No -VOC and represents over 80 % of the floor area . • Lighting systems are designed with employee controllability in mind . Lighting is controlled by timers but over- ride switches are provided for employee use . • CO2 monitoring throughout the warehouse • Extensive recycling/reuse program implemented for warehouse and office space including tires , cardboard , grease , plastics and electronic waste . • Avoid the use of plastic shopping bags • Require suppliers to reduce packaging and consider alternative packaging solutions . • Strategic location of distribution facilities to minimize miles traveled for delivery . • Only full trucks are ever delivered • All Costco trucks are equipped with an engine idle shut off timer. End of Project Description Page 9 of 9 � f t 1 � � � ; ,� �� Rttachm�n „ � ,�L ��F , � � _�, � � ��a ' p , � '` �- �� c ,� + � , n ry �,� ;t � � ' f � r � z �<�' �rr ,r ,�it��rE y ,.., . t �r9� >C� ?t f� nttu'` �� I �} � , � 2r p� �,��/�< << Y { ��"(C ��}�� 3�y*E � F OR' fi��i L.A.S �4 DAVIQ BAB,COCK + ASSOCIATES March 14, 2013 Ms:. Kim Jordan Senior Planner City of Ukiah 300 Seminary Avenue Ukiah , GA 954$2-5400 Re; Summary of Projeat Benef#s New Costco Warehouse and Gas Facility Ukiah; CA Dean Ms. Jordan, Attache.d for :your review is a summa .ry of the bene#its of the proposed new Cgstco 1Nar.eho.use and Gas Facility located :at Airport Park Boulevar.d in Ukiah , CA. We believe fhese benefits cor�espond: directly to some of the impac#s described in the Draft EIR and outweigh the impacts that might arise from the �roject. Please let tne know if you have any questions or require additional information regarding the Costco project. Sincerely, c���""` � � � . ` David E. Babcoek AIA; ASLA � �������� MAR 18 2013 ` c�' o� ur�atr� 'WVNfNG p��: 3581 MOUNT DIABLO BLVR., SUITE 235 LAFAYETfE; CA 94549 T: 925.283.5070 F: 925,283.4823 Descriptio,n :,of Proiect Benefits New Costco Warehouse and Gas Facility Ukiah, CA 1 . The Project SaveS Time and Tra�ei Costs for Ukiah Citizens. The. Praject will conveniently provide local Cgstco membets who currently travel to Costco warehouses in other cities with welf known products and services much nearer to their homes and businesses., This also pro�'ides air quality benefits from reduced trip lengfhs: 2. The Project Will Be a Posifive Addi#ion to the City's Retail Community. The Project:enhances the City of Ukiah and its surrounding area with an economically viable de.�eloprnent from a company fhat va(ues its relationship, with the community. 3. The Project Wii.l Create Emp_ loyment Opportunities Within the City. The Projeet will help the ,job/housing balance by generating approximately 175 to 200 new jobs for the citizens: of Ukiah who might :otherwise need to travel to neighboring cities for work. Costco's ;objeetives are to hire promotable employees with enthusiasm and a desire to build a career and to provide great opportunities for career advancement _ by promoting from within . Costco has the I.owest turnover rate in the industry at 6%o for employees with rnore th`an one year experience and pays among the highest' wages in the industry, Costco also provitles a: tremendous benefit package including medical, dental , vision, pharmacy, mental health, lif.e insurance, disability, long term care,. ernp(oyee. assistance program,, flexible spending aecounts, employee stock purchase program , 11 holidays pe .r year, coll..e.ge stu.dent retentian program and 40.1 (k) with ful.l eligibility within 9Q days. Part-time employees working mo.re than 20 hours per week r•eceive core medical , dental and vaeation benefits after 6 months and are guaranteed 24 hours per week: 4. Additional :Sales Tax Revenue The Froject will .gener..ate; additional sales tax revenue for #he City. tt is reasonable to assume that both the Cify and its citizens will benefit from the public services that are supported by the added sales tax revenue generated from Costco. 5. The Project WiII Pro�ide. Quality Landscaping. The Rroject' is designed :with landscaping that provides 6.°!o more landscaping area percentage: than,what is required by the City of Ukiah Municipal code. The planting palette is designed to mateh the region and includes drought tolerant species. Trees are planted thrqughout ttie parking lot areas and, perimeters to provide shading levels similar to the City of Davis shade standards. The iRigation design inc.ludes the use of deep root watering 'bubblers for parking lot shade trees and drip irrigafion for all g#her planting areas fo insure that the plant material is provided with the proper wafer while reducing PAGE 2 waste or ouerwatering : Enhaneed landscaping is incorporated along AirporE Park Boulevard and the northern drive of'the project to help ,screen activities within the Costeo d'e�elopment from Airport Park. 6. The Project Provides Need_ed Alternati�.e Access to the S.ite. The Project will provide pedestrian access throughout �the site to the -adjacent roads and will construct sidewalks along the street frontages that include :ADA campliant ramps and high-visibilify erosswalkpavement markings: In addition, a c.oncrete; pad will be prouided for a new bus shelfer immediately adjacenfito the new warehouse for members arriving by bus. Gostco will provide for ,a Class lll bike lane along Airport Park Blvd . to accommodate forth.ose employees :and members who wish totravel by bicycle and bike racks will be provided around` fhe building entrances. The new. pedestrian paths from - Airport Park Boulevard will be intercannected with interior Costco walks and will be enhance.d with landscaping and trees. The; new bus shelter at the norEhern edge of the project site will also be landscaped with planting and tree.s. fi: Traffic Infrastructure Improvements.: Costco w'ill contribute their fair share to the needed transportation infrastructure improvemenfs at the I-5/Talmage Road interchange through the transportatian impact fee. Additionally,. Costco vuill impletiient irriprovements algng Airport I'ark goule�ard and Commerce_ Drive including new sidewalks, crosswalks, ADA compliant curb ramps, pedestrian connections #rom the frontage road(s) ,and the warehouse and a eoncrete: pad for a new bus shelter. 8. Stormwater Treatment at the Site. The project site does not currently provide for stormwater'treatmenf prior to! discharge into the existing .stormwater channel. The Costco projecf-will provitle an on-site detention basin and a system of bio-fi{tration planters to process and control pea.k; stormwater runoff, reduce any net increases to the existing sy5tem , 'and control the quality of the runoff; The use of fhe detention basin and bio-filtration planter system will redu,ce sformwater peak flows and control/reduce`the amount of stormwater �olume> entering the existing sys#em. In addition , pollutants will be naturafly filtered before entering fhe existing system while pro�iding landscaping value. 9, Energy Sa�ings and Air Quality Protection. Costco operations will incorporate significant energy saving practices in the design and construction of this nevv warehouse facility that help conserve ene,cgy and natural resources ,while reducing Greenhouse Gas Emissions. These 'measures include: • Parking light standards designed t .o provide e�en light distribution while utilizing 20% tess energy compared to a ,greater number of fixtures at lower heights. Metal halide lamps provide a higher level of pereeived brightness wit{i less energy. • Exteriqr light fixtures are designed to minimize stray light and incorporate full cut- off glare shields and are considered night=sky compliant designs. • New building materials are typically extracted and manufactured within fhe region of the new warehouse thereby reducing transportation impacts. PAGE 3 • Construction waste is minimized thraugh the use:.of pre,manufactuced building components , including :structural and ;architectural . metal pan .els. • Pce-manufactueed metal panels prov'ide a higher R-value for insulation and greater solar reflectivity to help consenre energy as compared to a typical masonry block wall or other exterior building materials. • Reflective roofimateria( produces lower he.at absorption and lowers energy requirements during the ` hot summer manths. The roofing material meets the. requi�ements for. the EPA'.s Energy S#ar e. nergy effcienc.y program, + Triple glazed skylights on the r,00f help reduce the annual electrical energy by red,ucing the need for inte.rio� lighting through a program of "daylight harrvesting" . • All new refrigeration systems u.tilize a food safe coolant that eliminates use of CFC's, HCFCs and Halons> • Low>flow fixtures are utilized in restr.00ms and hand sinks. 10. Community In�olvement: CoSteo is an actiVely involved member of the ca►nmunitiss where our warehouses ace located. 1Ne welcome participation in both :local and national programs sueh as: • Adopt a-School Reading Program o Costco employees � volunteer #o help students in first through fourth grades improv,e .#heir reading 'skill5. Currently, there are 135 programs across the United States and Canada, with over 1 , 000 volunteers workmg one-on-one wifh students. - • Qhildren's Hospital Campaigns o In 2012, Costco locations helped to raise $ 19.7 million for 93 children's hospitals across the U ;S. and Canada. • United VUay Campaign 2011 -1 :2 o All North America locations participated in raising over $16.Q million (ineluding company match) : • Fresh Start Backpack Program o Since 1993, more than 4:35 million backpacks have been donafed to children in need in #he `U .S . , Canada, Mexico, Taiwan, Korea, Japan , Puerto F2ico, Australia and the U .K. + Communities in Schools' o Communities In Schools is a natianwide nonprofit organization , which partners with families, schools and community leadets to create a support system for students. Costco supports CIS both fi'naneially and through employee volunteer efforts. • Costco Scholarship Fund o Over 1 , � 00 scholarships have been awarded to :qualified students. PAGE 4 Ukiah Costco Fiscal Impact Analysis Prepared for: Environmental Science Associates Prepared by: � ALH Urban & Regional Economics July 2013 i ALH Urban & Regional Economics 2239 Oregon Street Berkeley,CA 94705 510.704.1599 aherman@alhecon.com July 5, 2013 Mr. Ray Weiss ESA � Community Development 2600 Capitol Avenue, Suite 200 Sacramento, CA 95816 Re: Ukiah Costco Fiscal Impact Analysis Dear Mr. Weiss: ALH Urban & Regional Economics (ALH Economics) is pleased to present this fiscal impact analysis of the proposed Costco project in the City of Ukiah. This analysis was prepared to provide an overview of the project's prospective fiscal impacts on the City of Ukiah's General Fund. It has been a pleasure working with you on this project. Please let me know if there are any questions or comments on the analysis included herein. Sincerely, � `� ��� � Amy L. Herman, AICP Principal C:�ALH Econ\2012 Projects\1202 ESA Ukiah Costco\Reports\Ukiah Costco Fiscal Impact Analysis r04.doc TABLE OF CONTENTS I. INTRODUCTION AND SUMMARY OF FINDINGS..........................................................1 INTRODUCTION................................................................................................................. 1 ANALYSISAPPROACH........................................................................................................... 1 SUMMARY OF FINDINGS.......................................................................................................2 II. METHODOLOGY AND DATA RESOURCES...................................................................6 METHODOLOGY................................................................................................................6 DATARESOURCES...............................................................................................................6 III. FISCAL ASSUMPTIONS AND REVENUE AND EXPENDITURE ESTIMATES....................8 FISCALASSUMPTIONS..........................................................................................................$ FISCAL REVENUE ESTIMATES...................................................................................................9 COUNTY GENERAL FUND REVENUE ESTIMATES......................................................................... 1 2 FISCAL EXPENDITURE ESTIMATES ........................................................................................... 1 3 IV. FISCAL IMPACT FINDINGS........................................................................................ 15 NET FISCAL IMPACT ANALYSIS OF UKIAH COSTCO PROJECT......................................................... 1 5 FISCAL IMPACT LIMITATIONS................................................................................................ 1 6 ASSUMPTIONS AND GENERAL LIMITING CONDITIONS............................................... 18 APPENDIX A: EXHIBITS APPENDIX B: TRIPLE FLIP AND CITY SHARE OF SALES TAX INFORMATION I. INTRODUCTION AND SUMMARY OF FINDINGS INTRODUCTION ALH Urban & Regional Economics ("ALH Economics") prepared a fiscal impact analysis of the proposed Costco store in Ukiah, California. The proposed project development site is located on Airport Park Boulevard in the City of Ukiah, near other major retailers such as Walmart, Friedman's, Food Maxx, and Staples. This project is planned to include a 148,000-square-foot Costco store with 20 gas pumps on approximately 15.33 acres (the "Project"). Costco will be purchasing the development site from the City of Ukiah Successor Agency for Dissolved Ukiah Redevelopment Agency. The purpose of this analysis is to demonstrate the net fiscal impacts of the Project relative to the City of Ukiah General Fund. The General Fund is the City's primary source of revenues and expenses, and is the mechanism through which the City's basic services are provided to residents, businesses, and other facilities located within the City of Ukiah. The study also includes information about the share of property tax revenues accruing to other taxing entities. The fiscal impact analysis is based on key Project information and select assumptions developed by ALH Economics. All relevant information and assumptions are cited in the report or the accompanying exhibits. This includes the Project's estimated 175 to 200 employees, approximately one-half of which are estimated to be full-time employees and one-half of which are estimated to be part-time employees, for a total of 152 full-time equivalent employees.' All dollar figures cited are in 2012 dollars. The analysis is benchmarked to the timeframe corresponding with stabilized operations of the Costco store. Due to the nature of the development planning process, assumptions relevant to the fiscal impact analysis may change over time. This dynamic nature suggests that study findings should be considered general rather than detailed indications of the Project's forecasted performance. ANALYSIS APPROACH The Costco store fiscal impact analysis is based upon independent research and upon findings from the urban decay study prepared for the store as part of the environmental review process. The independent research pertains to demographic estimates, tax rates, City of Ukiah General Fund revenue sources, and estimated City of Ukiah service costs. The City of Ukiah's budget and other governmental documents were among the major resources for the analysis. The urban decay study, also conducted by ALH Economics, explores the potential for the Project to cause or contribute to urban decay. This study, titled "Costco Wholesale Warehouse Urban Decay Analysis", was issued in August, 2012. As part of its analysis, the urban decay study projects the retail sales performance of the Project, providing an estimate of the Costco store's gross sales. In addition, the study examines the potential for some of the Costco store's sales to occur to the detriment of existing retailers. Therefore, the urban decay study also presents findings regarding the store's net increment of sales new to the market area served by the Project. Pursuant to the urban decay study, the market area identified for the Project includes all of Mendocino County and substantial portions of Lake County. All cited tax rates in the fiscal impact study were pursuant to the tax structure at the time ' The part-time employees are assumed to work an average of 25 hours weekly. Ukiah Costco Fiscal Impact Analysis 1 ALH Urban & Regional Economics the Urban Decay Analysis was completed, in August 2012. Cited City service costs are the most recently available costs at that time as well. The results of the Ukiah Costco Project fiscal impact analysis are presented for two scenarios. One scenario, comprising a minimum net fiscal impact, assumes a worst case stance that all existing retail sales potentially diverted by the Costco store will occur to the detriment of existing Ukiah retailers. This is a worst case scenario because it is unlikely to actually occur, since the sales diversions resulting from the Costco store development will likely be spread among a wide range of stores, including stores throughout the Project's market area. Thus, to assume that all sales will be diverted from Ukiah retailers is an analytic convention designed to maximize conservatism in the fiscal impact analysis. The second scenario, comprising a maximum net fiscal impact, is based on the gross sales estimates generated by the Ukiah Costco store, with no detrimental impacts on existing Ukiah retailers. In turn, this presents an unlikely best case analysis, as it is most likely that the results will occur somewhere between the two approaches, with some, but not all diverted sales occurring to the detriment of existing Ukiah retailers. Another component of sensitivity factored into the analysis pertains to the City of Ukiah's property tax rate. The Costco Project site is located in an area that has historically comprised a City of Ukiah Redevelopment Project Area. In the past, the majority of property taxes generated from properties in this Redevelopment Project Area accrued to the City of Ukiah's Redevelopment Agency. However, recent State of California legislative and court actions have resulted in the demise of Redevelopment in California. Accordingly, this fiscal impact analysis assumes that property tax distribution will revert to a more traditional distribution, with the City of Ukiah General Fund receiving a share of the basic 1% property tax rate consistent with the share collected from other City of Ukiah properties outside the Redevelopment Project Area. ALH Economics reached out to the Mendocino County Auditor-Controller to obtain the City of Ukiah's property tax rate for a representative property not in the City's Redevelopment Project Area. The information shared by the Auditor-Controller, indicated a 9.38% (rounded) property tax rate for the City of Ukiah. SUMMARY OF FINDINGS Fiscal Impact Analysis The results for the minimum and maximum net fiscal impact analyses are summarized below. These findings are summarized in Exhibit 1 on the following page. Minimum Net Fisca/ lmpact Findings. The minimum net fiscal impact findings indicate that on an annual basis, the Project is estimated to generate $471,194 in gross revenue to the City of Ukiah General Fund. The largest General Fund revenue component is incremental retail sales tax estimated at $396,103 per year, even with the worst case assumption that all sales estimated to be diverted from existing retailers are Ukiah retailers. All other General Fund revenues are much lower, with property taxes comprising the next largest General Fund revenue source at $25,285, followed by business license fees at $22,274, property tax in lieu of VLF revenues at $21,521, and yet other lesser revenues. In addition, the Project's City of Ukiah Measure S sales tax proceeds dedicated to a special Public Safety Fund are estimated at $198,051. Ukiah Costco Fiscal Impact Analysis 2 ALH Urban & Regional Economics Exhibit 1 Ukiah Costco Annual Net Fiscal Impact Analysis(1) City of Ukiah General Fund and Public Safety Fund FY 2011-12 Dollars Net Fiscal Impact General Fund Revenues and Expenditures Categories Minimum(2) Maximum(3) Revenues (4) Property Taxes(5) $25,285 $25,285 Property Tax in Lieu of VLF(6) $21,521 $21,521 Business License Fees(7) $22,274 $38,620 Retail Sales Taxes(8) $396,103 $617,711 Franchise Fees(9) $5,803 $5,803 Fines, Fees&Forfeitures(9) $208 $208 Sub-total $471,194 $709,149 Expenditures(10) General Government $8,175 $8,175 Public Works $3,681 $3,681 Community Services $6,851 $6,851 Public Safety $32,414 $32,414 Capital Maintenance $6,327 $6,327 Sub-total $57,447 $57,447 General Fund Net Impact All Revenues and Expenses(11) $413,747 $651,702 Additional Measure S Sales Tax Revenues to to Public Safety Fund(12) $198,051 $308,856 General Fund and Public Safety Fund Net Impact All Revenues and Expenses(13) $611,798 $960,557 Source:ALH Urban&Regional Economics. Notes: (1)Includes estimated General Fund revenues less estimated General Fund expenditures. (2)The minimum net fiscal impact corresponds with the maximum sales impact scenario presented in Exhibit 6.This scenario is highly conservative and assumes that all taxable sales diverted as a result of the Costco store occur in the City of Ukiah,thus reducing the City's taxable retail sales base.This is a highly conservative assumption because sales diversions will occur in other locations besides the City of Ukiah.Three revenue sources are varied for this analysis,including retail sales tax, business license fees(see variation in business fees in Exhibit 7),and Measure S sales tax. (3)The maximum net fiscal impact corresponds with the minimum sales impact scenario presented in Exhibit 6.This would comprise no taxable sales diversions from existing City of Ukiah retailers.This scenario corresponds to the net fiscal impact analysis of the Costco store absent consideration of any existing retailer impacts. (4)Includes the most substantial revenues anticipated to accrue to the City of Ukiah General Fund resulting from the ProjecYs stabilized operations.However,there may be yet additional revenues flowing to the General Fund pursuant to the ProjecYs operations. (5)See Exhibit 4. (6)See Exhibit 5. (7)See Exhibit 7. (8)See Exhibit 6 for the taxable retail sales and Exhibit 3 for the retail sales tax rate. (9)See Exhibit 8 for the per employee revenue figures and Exhibit 2 for the estimated number of Project employees. (10)The estimated service costs per employee were derived in Exhibit 9.These costs were multiplied by the estimated number of Project employees presented in Exhibit 2. (11)Comprises revenues less expenditures. (12)See Exhibit 6 for the taxable sales range and Exhibit 3 for the Measure S sales tax rate.As with the retail sales tax estimate,the taxable sales estimate varies pursuant to the estimated taxable sales diversions. (13)Includes the Measure S sales tax revenues. The average cost General Fund expenditures estimated to be attributable to the Project total $57,447 annually. This reflects the average City of Ukiah service costs for General Government, Public Works, Community Services, and Public Safety, plus an allocation for Capital Maintenance. The net result of the Project's fiscal impact at stabilized operations for the minimum net fiscal impact scenario, assuming on a worst case basis that all diverted sales are diverted from Ukiah retailers, is a projected $413,747 annual contribution to the City of Ukiah's General Fund. This represents an annual contribution net of estimated City costs to service the Project equivalent to approximately 2.8% of the City's General Fund expenditures, which is a moderate contribution. Factoring in the Measure S sales tax proceeds, which are dedicated to a special Public Safety Fund, boosts the Project's total net revenue under the minimum net fiscal impact scenario to the City of Ukiah to $611,798, or approximately 4.2% of the City's General Fund expenditures. Maximum Net Fiscal lmpact Findings. The maximum net fiscal impact findings indicate that on an annual basis, the Project is estimated to generate $709,149 in gross revenue to the City of Ukiah General Fund. The largest General Fund revenue component is incremental retail sales tax estimated at $617,711 per year, which corresponds to retail sales taxes on all taxable Costco sales. This corresponds with the store's gross sales, irrespective of any potential impacts on existing Ukiah retailers. All other General Fund revenues are much lower, with business license fees totaling $38,620 comprising the next largest General Fund revenue source, followed by property taxes at $25,285, property tax in lieu of VLF revenues at $21,521, and yet other lesser revenues. In addition, the Project's City of Ukiah Measure S sales tax proceeds dedicated to a special Public Safety Fund based on total taxable sales are estimated at $308,856. The average cost General Fund expenditures estimated to be aitributable to the Project under the maximum net fiscal impact scenario are the same as the minimum net fiscal impact scenario, or $57,447 annually. The net result of the Project's gross fiscal impact at stabilized operations for the maximum net fiscal impact scenario is a projected $651,702 annual contribution to the City of Ukiah's General Fund. This represents an annual contribution net of estimated City costs to service the Project equivalent to an estimated 4.5% of the City's General Fund expenditures, which comprises a substantial contribution. Factoring in the Measure S sales tax proceeds, which are dedicated to a special Public Safety Fund, boosts the Project's total net revenue under the maximum net fiscal impact scenario to the City of Ukiah to $960,557, or approximately 6.6% of the City's General Fund expenditures. Other Taxing Entity Properfy Tax Revenues. In addition to the City of Ukiah, there are 14 other taxing entities that will receive a portion of the revenues generated by the basic 1.0% property tax. The entities that will receive the greatest estimated share of property tax revenues include: o Ukiah Unified School District, $92,886 o Mendocino County, $65,001 o Educational Revenue Augmentation Funds,2 $42,510 o Mendocino Community College, $17,420 o Mendocino County Office of Education, $11,180 2 These funds are subsequently redistributed to educational entities. Ukiah Costco Fiscal Impact Analysis 4 ALH Urban & Regional Economics Including the City of Ukiah this accounts for 94.4% of all generated property tax revenues. Other taxing agencies that will share the remaining $15,146 in property tax revenues include the library, Russian River Cemetery, and the County water agency, among others. Mendocino County General Fund Revenues. In addition to $65,001 in annual ad valorem property taxes, the Mendocino County General Fund will benefit from sales tax revenues generated by the Project's taxable sales. These sales tax revenues are estimated to range from $49,513 to $77,214. Thus, Mendocino County's General Fund is estimated to receive from $114,514 to $142,215 in revenues annually resulting from the Project's development in Ukiah. Limitations of Findings The foregoing findings are intended to give a general sense of the net fiscal impacts of the Project. The figures are not precise estimates and changes will occur if the City of Ukiah fiscal revenue and expenditure factors or other assumptions are developed with more precision or change. Nonetheless, the findings suggest a very strong likelihood that the Ukiah Costco Project will result in a significant net positive fiscal impact to the City's General Fund and the Public Safety Fund. Ukiah Costco Fiscal Impact Analysis 5 ALH Urban & Regional Economics II. METHODOLOGY AND DATA RESOURCES METHODOLOGY ALH Economics developed an approach to the proposed Ukiah Costco project fiscal impact analysis designed to provide an understanding of the Project's net fiscal impact on the City of Ukiah's General Fund using specific Project information as much as possible. This includes estimates of revenues generated by the Project that accrue to the City's General Fund as well as service costs incurred by the City funded through the General Fund. The analysis is grounded in the City's budget and existing revenue base and performance estimates for the Project. The analysis is structured to examine the Project's impacts upon full build out and assumed stabilization. To facilitate the analysis and interpretation of the results, the findings are presented in 2012 dollars. The City expenditures analysis was conducted using two approaches—the marginal cost, or case study approach, and the average cost approach. The marginal cost approach involves obtaining cost information directly from City department representatives based on Project specifics, such as new building area, number of employees, and type of operations. This approach is often perceived as the more accurate approach to estimating expenditures, because it is based on expectations of actual service requirements and associated City costs. For the purpose of this study, queries about marginal costs were directed to City department representatives by ALH Economics. Revenues can also be estimated on a marginal basis, based on revenues tied to specific project performance characteristics, such as property value and business license fees. The alternative approach to expenditures is an average cost approach. This is typically the most expeditious approach for a fiscal impact analysis but is also one that can result in under or over estimation of both project-related costs and revenues. In this approach, costs are derived by determining an average cost to provide existing services on a per capita basis for the relevant population served, which is then applied to the comparable population base for the project under study. The average costs in this study are based on the City of Ukiah's annual budget, which for this analysis included the Adopted Budget for 201 1-2012. Wherever possible, efforts were made throughout the analysis to develop assumptions or estimates in a conservative manner, in order to not overstate potential net revenues aitributable to the Project. The analysis was conducted in a series of linked excel-based worksheets. Exhibits generated from these worksheets are included in the Appendix. DATA RESOURCES The fiscal impact analysis relied upon a number of key resources. These resources are all identified in the sources and notes to the exhibits developed to support the analysis and provide the results. These resources are as follows: • Projectenvironmentaldocuments. ALH Economics prepared a study assessing the urban decay impacts of the Project as part of the Project's environmental documentation. This report, titled "Costco Wholesale Warehouse Urban Decay Analysis," was the source of key assumptions including minimum and maximum taxable sales. Ukiah Costco Fiscal Impact Analysis 6 ALH Urban & Regional Economics • Materia/s provided by Costco Who%sa/e Corporation. These materials include the Project's estimated sales, information about full-time and part-time employee counts, and estimated construction costs. • Materia/s provided by other Project representatives. These include Project information submiited to the City of Ukiah by David Babcock & Associates including acreage and estimated employment. • City of Ukiah resources. These include the City's website, the City of Ukiah 201 1-2012 Adopted Budget, the Finance Department and other departmental representatives, and the City of Ukiah Business License Fee schedule. • Third pariy resources. A number of third party resources were referred to for information important to the analysis. These sources include RealQuest, the State of California Department of Finance, the State of California Employment Development Department, the State of California Board of Equalization, the Mendocino County Auditor-Controller, and the municipal tax consulting firm Hinderliter, de Llamas & Associates. All of these resources are identified as warranted in the series of exhibits that document the fiscal impact analysis as well as in the text. The cited exhibits can be found in the Appendix. Ukiah Costco Fiscal Impact Analysis 7 ALH Urban & Regional Economics III. FISCAL ASSUMPTIONS AND REVENUE AND EXPENDITURE ESTIMATES FISCAL ASSUMPTIONS The assumptions and building blocks underlying the fiscal impact analysis are presented in Exhibits 2 and 3, which can be found in the Appendix. Footnotes to the exhibits provide detail in addition to what is provided in the text. A summary of these exhibits and their primary purpose follows. • Exhibit 2, Project Description, Employment, and Service Population Estimates. This exhibit summarizes the proposed Ukiah Costco development program. This program is based on information provided by David Babcock & Associates and Costco Wholesale Corporation. Stabilized employment estimates are provided for on a full-time equivalency employment basis. These provide a foundation for estimating the Project's "service population." Ukiah Costco employment is estimated to total 175 to 200, or an average of 187.5. Pursuant to information provided by Costco, an estimated one-half of these employees will be full-time and one-half will be part-time. The part-time employees are estimated to average 25 hours per week. This results in estimated stabilized full-time equivalent employment totaling 152. The Project's service population estimate therefore totals 76, which comprises one-half the 152 estimated full-time equivalent employees, on the assumption that employees do not require the same level of service as residents. This is an industry-standard assumption and is relevant to the calculation of average cost City expenditures, provided as an alternative to the City's estimated marginal service costs.3 Some City revenues are also estimated based on the Project's service population. • Exhibit 3, City of Ukiah Demographic, Employment, and Tax Characteristics. This exhibit contains many of the baseline assumptions and information necessary to generate estimates of City of Ukiah revenues and expenses applicable to the Project. These include population and employment estimates used to generate the size of the City's existing service population for the purpose of deriving existing average cost expenditures and some per capita revenues. These estimates include a population base of 15,960 in January 2012 and an employment base of 6,520 in May 2012. Both figures are assumed to comprise population base indicators for the study's 2012 analysis. Based on the assumption that each employee is equivalent to one-half a resident, the City's service population is estimated to total 19,220. This exhibit also includes key tax-related information unique to Ukiah, such as property and sales tax rates, vehicle in lieu of property tax revenues, and secured and unsecured property assessed valuation, all of which are germane to the fiscal impact analysis as noted in other exhibits. Most relevant is the City's estimated share of the basic 1% property tax rate collected by the County. This is the estimated rate applicable to property located in the City of Ukiah not located within a Redevelopment Project Area. The Costco property is located in Ukiah's Redevelopment Project Area. Previously, the majority of property taxes generated from properties in the Redevelopment Area accrued to the City of Ukiah's Redevelopment Agency. However, recent State of California legislative and court actions have resulted in the demise of 3Most fiscal impact analysts typically equate 2 to 3 employees with 1 resident, or 0.5 to 0.33 employees per resident, on the theory that people who work in an area place less demands on services than residents. For the purpose of this analysis ALH Economics used the 0.5 employees per resident factor, which is a more conservative choice than the 0.33 factor, especially relative to service cost estimates based on the average cost approach. Ukiah Costco Fiscal Impact Analysis 8 ALH Urban & Regional Economics Redevelopment in California. Accordingly, this fiscal impact analysis assumes that property tax distribution will revert to a more traditional distribution, with the City of Ukiah General Fund receiving a share of the basic 1% property tax rate consistent with the share collected from other City of Ukiah properties outside the Redevelopment Project Area. ALH Economics reached out to the Mendocino County Auditor-Controller to obtain the City of Ukiah's property tax rate for a representative property not in the City's Redevelopment Project Area. The information shared by the Auditor-Controller indicated a 9.38% (rounded) property tax rate for the City of Ukiah. This exhibit indicates the City's sales tax rate is 1.0%. This is the effective sales tax rate for the City. This comprises a basic rate of 0.75%with an additional 0.25% generated pursuant to the triple flip, which includes sales taxes diverted temporarily by the State of California but returned via other fiscal means. This other fiscal means is through property taxes, labeled "Triple-Flip Property Tax in Lieu" in the City's budget. Information about how the triple flip works in California is included in Appendix B. This information was prepared by the municipal tax consulting firm Hinderliter, de Llamas & Associates. This appendix also includes copies of materials from the State of California Board of Equalization referencing the City of Ukiah's 1 .0% sales tax rate. Finally, the City has a special '/� cent sales tax, referred to as Measure S Sales Tax, which proceeds go to fund a special Public Safety Fund. This tax is due to expire in September 2015 unless the electorate votes to extend the tax. FISCAL REVENUE ESTIMATES The revenue calculations for the fiscal impact analysis are presented in Exhibits 4 through 7. A summary of these exhibits and their primary purpose follows. • Exhibit 4, Incremental Property Valuation and Annual Property Tax, Property Valuation Pursuant to the Cost Approach, City of Ukiah, 2012 Dollars. This exhibit presents the assumptions and conclusions regarding the property valuation of the Project upon the completion of development and the estimated property tax revenues that will accrue to the City of Ukiah General Fund. The total valuation is estimated as well as the increment net of the existing property value. When complete, the Mendocino County Assessor will value the property for property tax purposes using three approaches to value: cost; income; and comparables. For the purpose of this analysis, ALH Economics prepared a cost approach based upon currently available information, such as land acquisition cost and estimated construction costs. Based upon construction costs provided by Costco Wholesale Corporation, and reviewed for reasonableness by ALH Economics, and a land acquisition cost provided by the City of Ukiah, the Project's property valuation upon completion is estimated at $26.9 million. Costco Wholesale Corporation is purchasing 15.33 acres of land from the City of Ukiah for this Project. This property is part of a larger assemblage of land that the City of Ukiah had appraised for $3.50 per square foot. This appraised value comprises the negotiated sales price between the City of Ukiah and Costco Wholesale Corporation. For 15.33 acres this comprises a $2,337,212 sale price. Because the City of Ukiah Successor Agency for Dissolved Ukiah Redevelopment Agency is the current properfy owner, no property taxes are currently generated by the property. Therefore, Ukiah Costco Fiscal Impact Analysis 9 ALH Urban & Regional Economics 100% of the property taxes based upon the estimated value of the Project will comprise net new property taxes. Accordingly, the incremental annual property tax revenues that will accrue to the Ukiah General Fund are estimated at $25,285. This is based on the City of Ukiah receiving 9.38% of the basic 1% property tax proceeds as cited in Exhibit 3 and depicted in Exhibit 4. Along with the City's share of the basic 1.0% property tax Exhibit 4 identifies other taxing entities that will receive property tax revenues. These are the entities for a representative tax rate area in the City of Ukiah. The actual distributions for the Costco site may vary from these distributions, but the variances are not likely to be substantial. There are an additional 14 taxing entities that will receive a share of the property taxes. The entities with the largest percentages and associated property tax revenues estimates are as follows: o Ukiah Unified School District, 34.48%, $92,886 o Mendocino County, 24.13%, $65,001 o Educational Revenue Augmentation Funds4, 15.78%, $42,510 o Mendocino Community College, 6.47%, $17,420 o Mendocino County Office of Education, 4.15%, $1 1,180 Including the City of Ukiah this accounts for 94.4% of all generated property tax revenues. Other taxing agencies that will share the remaining 5.6% of property tax revenues, or $15,146, include the library, Russian River Cemetery, and the County water agency, among others. • Exhibit 5, Property Tax in Lieu of VLF Estimates, Project Stabilization, Net New or Incremental Valuation Attributable to Ukiah Costco Development, City of Ukiah, FY 2011-12 Dollars. This revenue component, Property Tax in Lieu of Vehicle License Fees (VLF), is derived from the Project's anticipated contribution to increased property valuation throughout the City of Ukiah. This is the method by which such tax revenues are estimated by the State of California and redistributed to local jurisdictions. This is a state substitute for prior motor vehicle license taxes that were redistributed by the State to municipalities. The results of these calculations indicate that the incremental value associated with the Project is estimated to increase the City's assessed valuation by 1.77%, a noticeable increase. This will provide an estimated revenue increase of $1 .2 million to the City of Ukiah. • Exhibit 6, Estimated Costco Project Taxable Retail Sales —Maximum and Minimum, City of Ukiah, FY 2011-12 Dollars. Retail sales tax revenues generated by the Project will comprise a major revenue source to the City of Ukiah. This exhibit presents the total estimated taxable retail sales that will be generated by the Costco store and the minimum net taxable amount, less potential taxable sales diversions from existing Ukiah retailers. These are presented as maximum and minimum taxable sales estimates. The maximum taxable sales estimate corresponds with the estimated taxable portion of the Costco sales. The amount and distribution of sales is estimated in the previously referenced companion report, "Costco Wholesale Warehouse Urban Decay Analysis." The total store sales estimate upon Project stabilization is estimated at $113.8 million. The companion urban decay study provided information about taxable versus nontaxable sales in major sales °These funds are subsequently redistributed to educational entities. Ukiah Costco Fiscal Impact Analysis 10 ALH Urban & Regional Economics categories reported by the State of California Board of Equalization. These include estimates that 30% of food sales are taxable and 33% of pharmacy sales are taxable. The estimated pharmacy sales are included in the "Other Retail Group" sales estimate referenced in Exhibit 6 pursuant to State of California Board of Equalization (BOE) classification procedures, with pharmacy sales assumed to comprise 20.73% of the "Other Retail Group" estimated sales component. This assumption is based on ALH Economics analysis of BOE data for the market area. The urban decay study also referenced a typical portion of "General Merchandise" sales that are not taxable. However, for the purpose of this analysis it is assumed that this non- taxable portion is not relevant since this is an allocation for food sales and there is already a large increment of food sales estimated for the Costco store. The maximum taxable retail sales generated by the Costco store are estimated to total $61.8 million. This is the gross amount of taxable sales estimated to be generated by the Costco store. On a worst case basis, sales at the Costco store will be achieved to the detriment of other existing retailers throughout the trade area served by the Costco store. This market area, as defined in the ""Costco Wholesale Warehouse Urban Decay Analysis," includes all of Mendocino County and a large portion of Lake County. Thus, any sales that are diverted from existing retailers to the benefit of Costco will likely be distributed throughout this market area. However, to provide a worst case analysis, the fiscal impact analysis conservatively estimates the minimum net taxable retail sales generated by the Costco store assuming that all diverted sales are diverted from Ukiah retailers. These diverted sales are estimated in "Costco Wholesale Warehouse Urban Decay Analysis" to total $46.7 million. The diversion of all these sales from Ukiah retailers is an unlikely scenario, but as stated, presents a worst case analysis, which will result in the lowest estimated retail sales tax estimate possible for the Costco store. Pursuant to the above-cited worst case assumptions, and the same taxable vs. non-taxable assumptions cited above, the minimum net taxable retail sales estimated for the Costco store totals $39.6 million. • Exhibit 7, Select City of Ukiah General Fund Revenues — Business License Fees and Sales Taxes, City of Ukiah, FY2011-12 Dollars. There are two revenue sources identified in this exhibit along with the corresponding revenues estimated to be generated by the Project. These revenue sources include business license fees and retail sales taxes. Yet other revenues are referenced in Exhibit 8. As presented in this exhibit, the Costco store is estimated to generate $38,620 annually in recurring business license fee revenues. This is based on the City's current fee of $0.35 per $1,000 in gross receipts, with no limitation (see Exhibit 3). This business license rate is applied to the gross sales estimate for the Costco store less an estimated 3% allocation for alcohol (pursuant to Costco information), which is not subject to the City's Business License Fee. As with the taxable sales estimate, a more conservative net Business License Fee is also estimated, continuing the worst case analysis assumption that all sales diverted from existing retailers are diverted from Ukiah retailers. For this estimate, the worst case assumption is that $46.7 million in sales will be lost to local businesses (see Exhibit 6). Assuming all of these sales are subject to the Business License Fee results in a loss of $16,347 in Business License Ukiah Costco Fiscal Impact Analysis 1 1 ALH Urban & Regional Economics Fee income to the City of Ukiah's General Fund. Thus, the net Business License Fee revenue would be $22,274 annually. Similar to the Business License Fee estimate, there is a minimum and maximum sales tax estimate for the Costco store, corresponding to the taxable sales estimates in Exhibit 6. These taxable sales estimates range from $39.6 million to $61 .8 million.s Based on the City's 1.0% sales tax rate this equates to $396,103 to $617,711 in sales tax revenues to the City's General Fund. While it is in place, additional Measure S Sales tax revenues will be generated, totaling $198,051 to $308,856 in additional sales tax revenues. • Exhibit 8, Select City of Ukiah General Fund Revenues — Franchise Tax and Fees, Fines & Forfeitures, City of Ukiah, FY 2011-12 Dollars. There are two revenue sources identified in this exhibit along with the corresponding revenues estimated to be generated by the Project. These revenue sources include franchise taxes and fees, fines & forfeitures. The Franchise Fees are associated with use of franchised utilities, including PG&E and City utilities. There are also cable t.v. franchise fees. These fees will not be generated on a per employee basis, but rather based upon utility usage. However, for the purpose of fiscal impact analysis, the franchise tax revenue projection is prepared on a per service population basis as an analytical convention, with employment in this case serving as a proxy for measuring franchise tax revenues. Therefore, the calculation in Exhibit 8 is based on the City's Franchise Tax revenues calculated on a per service employee basis and then multiplied by the service employee equivalent of the anticipated Project employment. This fee does not include the cable t.v. portion of the City's projected franchise fee payment because cable t.v. use is typically associated with residential use and not business use. The result is a fee of $76.36 per service employee, which when multiplied by the Project's service population of 76 results in an annual franchise tax fee of $5,803. While relatively low in comparison, the Project is also estimated to generate approximately $208 annually in fees, fines & forfeitures associated with fees and fines collected by the City of Ukiah for various local transgressions. This fee revenue is also calculated on a per service population basis, averaging $2.74 per service population. Applying this fee to the Project's 76 service population equivalent results in the $208 annual estimate. COUNTY GENERAL FUND REVENUE ESTIMATES As noted in Exhibit 4, Mendocino County receives a portion of the property taxes that will be generated by the Project. These ad valorem taxes, totaling $65,001 per year, will accrue to the County's General Fund. As noted in Exhibit 4, yet other County funds will receive a portion of property taxes. The County's General Fund will additionally receive sales tax revenues resulting from the Project's taxable sales. Pursuant to Exhibit 6, the minimum and maximum amount of taxable sales generated by the Project will total $39.6 million to $61.8 million. The County's sales tax rate is 0.125% of taxable sales. The following text table estimates what the County's resulting sales tax benefits will be based on the range of Costco's estimated net taxable sales. 5 The Costco project is anticipated to open with 16 gas pumps, increasing to 20 pumps at stabilization. Projected gas sales and associated sales taxes are anticipated to remain constant, with the sales achieved with 16 pumps redistributed among 20 pumps following the expansion. Ukiah Costco Fiscal Impact Analysis 12 ALH Urban & Regional Economics Mendocino County Costco-Related General Fund Revenues, 2012 Dollars Revenue Category Minimum Maximum Costco Taxable Sales Net Taxable Sales (1) $39,610,272 $61,771,121 County General Fund Sales Tax and Other Revenues Sales Tax Revenues (2) $49,513 $77,214 Ad Valorem Property Tax Revenues (3) $65,001 $65,001 Total County General Fund Revenues $114,514 $142,215 (1) See Exhibit 6. (2) The County's sales tax rate is 0.125%, applied to the estimated taxable sales. (3) See Exhibit 4. As the above table indicates, the County's Costco-related sales tax revenues will range from $49,513 to $77,214. Adding these estimated revenues to the County's ad valorem property tax revenues results in an annual County General Fund revenue estimate ranging from $114,514 to $142,215. Thus, the County's General Fund is estimated to receive a minimum of $114,514 in revenues annually resulting from the Project's development in Ukiah. FISCAL EXPENDITURE ESTIMATES As discussed in the Methodology section, fiscal impact studies typically engage in two methods to estimate project-based service costs. One is the average cost approach, typically implemented in the absence of detailed service provision and cost information, and one is the marginal, or case study approach, which derives estimated service costs based on expectations of service demands and associated actual service delivery costs. Key City of Ukiah staff were queried regarding the marginal costs to provide services to the proposed Ukiah Costco Project. Information conveyed in conversations with these staff suggested that limited additional service costs were anticipated associated with Costco. The City's Public Safety Officer indicated he did not anticipate much need for incremental police or fire services. His greatest concern involved holiday season traffic and the potential for increased traffic accidents due to a perceived higher volume of consumer shopping. He also expressed a desire that the Costco grounds be developed in a manner designed to dissuade congregations of homeless persons. The City's Public Works Director also did not anticipate a marginal impact on the City's cost of Public Works services. However, he did mention a general City need for Capital Maintenance, not specifically tied to development of the Costco, but also not included in the City's budget. An allocation for this cost item is included in the average cost analysis, discussed below. Finally, the City's Community Services Administrator was also queried about added service costs associated with Costco. Her concerns related primarily to increased demands on City parks and recreational services due to Costco's market draw and expectations of attracting shoppers and visitors who do not already frequent Ukiah businesses and services. However, no costs were assigned to these indirect perceived increases in parks and other recreational facilities use. The results of the City staff discussions regarding marginal costs of providing services to Costco suggested a minimal increase in service costs, if any, directly tied to the new Costco store. However, in Ukiah Costco Fiscal Impact Analysis 13 ALH Urban & Regional Economics an effort to present a conservative analysis, Exhibit 9 includes the average cost approach to City services, to provide maximum cost estimates associated with providing services to the Project. • Exhibit 9, City of Ukiah General Fund Average Cost Expenditures, FY 2011-2012 Adopted Budget, Fiscal Impact Factors. In this exhibit the City of Ukiah's General Fund Expenditures are expressed as average costs relative to key populations, e.g., the City's service population or the City's resident population. This includes the four major departments that collectively include the provision of all City services. These are General Government, Public Works, Community Services, and Public Safety. In addition, discussions with Ukiah's Public Works Director suggested the addition of another category, Capital Maintenance. According to the Public Works Director Ukiah has identified a need for $1.6 million to provide for street system maintenance designed to keep the City's streets at a certain rating level. This expenditure estimate is not included in the City's budget. Therefore, it was suggested that this line item amount be added to the budget calculations, and then apportioned across the relevant City service population. Accordingly, this line item is included in Exhibit 9, with the anticipated costs allocated across the City's service population. For the five departments/expenditure categories assumed to serve the City's service population, the average service costs are $755.89 per service population, which breaks down into $755.89 per resident and $377.94 per employee. Exhibit 9 is structured to facilitate analysis of the City's expenditures on a fixed and variable cost basis. Using this approach, some of the City's departmental expenditures are assumed to be fixed regardless of the size of the population served. The balance of the expenditures is then deemed to be variable, i.e., to change with the size of the population served. While Exhibit 9 is structured to accommodate a fixed versus variable analysis, the analysis conservatively assumes that all costs are variable. This means all of the departmental expenditures are spread across the City's service population. As stated, this is a conservative approach, and serves to provide a maximum estimate of average service costs associated with development of the proposed Ukiah Costco store. Ukiah Costco Fiscal Impact Analysis 14 ALH Urban & Regional Economics IV. FISCAL IMPACT FINDINGS NET FISCAL IMPACT ANALYSIS OF UKIAH COSTCO PROJECT The results of the Ukiah Costco Project fiscal impact analysis are presented in Exhibit 10 (which is a duplicate of the earlier referenced Exhibit 1). These findings present the estimated annual revenues and expenditures accruing to the City of Ukiah's General Fund at build out of the Project, assuming two scenarios: 1) only a portion of the Costco store's sales and associated revenue will comprise net new sales to the City of Ukiah pursuant to worst case assumptions regarding diverted sales, comprising the minimum net fiscal impact scenario; and 2) all Project sales tax and other revenues are net new to the City of Ukiah, comprising the maximum net fiscal impact scenario. Finally, the Measure S retail sales tax revenues dedicated to Public Safety are also separately estimated. Minimum Net Fiscal Impact Scenario Summary of Revenue. The minimum net fiscal impact findings indicate that on an annual basis, the Project is estimated to generate $471,194 in gross revenue to the City of Ukiah General Fund. The largest General Fund revenue component is incremental retail sales tax estimated at $396,103 per year, even with the worst case assumption that all sales estimated to be diverted from existing retailers are Ukiah retailers. All other General Fund revenues are much lower, with property taxes comprising the next largest General Fund revenue source at $25,285, followed by business license fees at $22,274, property tax in lieu of VLF revenues at $21,521, and yet other lesser revenues. There are likely to be yet additional General Fund revenues generated by the Project, but the most substantial revenue sources are reflected in the $471,194 estimate. In addition, the Project's City of Ukiah Measure S sales tax proceeds dedicated to a special Public Safety Fund are estimated at $198,051 . Summary of Expenditures. The average cost General Fund expenditures estimated to be attributable to the Project total $57,447 annually. This reflects the average City of Ukiah service costs for General Government, Public Works, Community Services, and Public Safety and an allocation for Capital Maintenance. These are the estimated average service costs for the Project's 152 full-time equivalent employees. Net Fiscal Impact Summary. The net result of the Project's fiscal impact at stabilized operations for the minimum net fiscal impact scenario, assuming on a worst case basis that all diverted sales are diverted from Ukiah retailers, is a projected $413,747 annual contribution to the City of Ukiah's General Fund. This represents an annual contribution net of estimated City costs to service the Project equivalent to approximately 2.8% of the City's General Fund expenditures. Factoring in the Measure S sales tax proceeds, which are dedicated to a special Public Safety Fund, boosts the Project's total net revenue under the minimum net fiscal impact scenario to the City of Ukiah to $61 1,798, or approximately 4.2% of the City's General Fund expenditures. Ukiah Costco Fiscal Impact Analysis 15 ALH Urban & Regional Economics Maximum Net Fiscal Impact Scenario Summary of Revenue. The maximum net fiscal impact findings indicate that on an annual basis, the Project is estimated to generate $709,149 in gross revenue to the City of Ukiah General Fund. The largest General Fund revenue component is incremental retail sales tax estimated at $617,711 per year, which corresponds to retail sales taxes on all taxable Costco sales. This corresponds with the store's gross sales, irrespective of any potential impacts on existing Ukiah retailers. All other General Fund revenues are much lower, with business license fees totaling $38,620 comprising the next largest General Fund revenue source, followed by property taxes at $25,285, property tax in lieu of VLF revenues at $21,521, and yet other lesser revenues. There are likely to be yet additional General Fund revenues generated by the Project, but the most substantial revenue sources are reflected in the $709,149 estimate. In addition, the Project's City of Ukiah Measure S sales tax proceeds dedicated to a special Public Safety Fund based on total taxable sales are estimated at $308,856. Summary of Expenditures. The average cost General Fund expenditures estimated to be attributable to the Project under the maximum net fiscal impact scenario are the same as the minimum net fiscal impact scenario, or $57,447 annually. Net Fiscal lmpact Summary. The net result of the Project's gross fiscal impact at stabilized operations for the maximum net fiscal impact scenario is a projected $651,702 annual contribution to the City of Ukiah's General Fund. This represents an annual contribution net of estimated City costs to service the Project equivalent to an estimated 4.5% of the City's General Fund expenditures. Factoring in the Measure S sales tax proceeds, which are dedicated to a special Public Safety Fund, boosts the Project's total net revenue under the maximum net fiscal impact scenario to the City of Ukiah to $960,557, or approximately 6.6% of the City's General Fund expenditures. FISCAL IMPACT LIMITATIONS The foregoing fiscal impact analysis is intended to give a general sense of the net fiscal impact of the Ukiah Costco Project. The figures are not precise estimates and changes will occur if the revenue and expenditure factors or other assumptions are developed with more precision. Nonetheless, the findings suggest a strong likelihood that the Project will result in a significant net positive fiscal impact to the City's General Fund. However, some limitations to the analysis, listed below, may affect the degree of the Project's estimated net benefit and change the net fiscal impact balance. General Limitations • The analysis is benchmarked to estimated stabilized operations. The net impacts during the ramp up period to stabilized operations will vary from the stabilized operations estimate. It may take several years before the full stabilized impacts transpire. • The analysis may not be inclusive of all revenue and cost estimates. Major categories associated with ongoing revenues and costs are included, but there may be other less significant categories excluded from the analysis. Ukiah Costco Fiscal Impact Analysis 16 ALH Urban & Regional Economics One-time Revenues and Appropriations • The fiscal impact analysis does not include one-time fees that may be assessed by the City of Ukiah. These fees are typically assessed on a cost recovery basis and are thus excluded from the analysis. Other potential fees, such as impact fees, are also excluded as they too are designed to provide a nexus with the services provided. • Depending upon how construction contracts are structured, there may be the potential for the City of Ukiah to benefit from construction-related sales and use taxes associated with the construction effort. These revenues are excluded from the analysis but could comprise a strong source of one-time revenues. • Another one-time revenue that could benefit the City of Ukiah during the construction period includes retail sales tax revenues resulting from construction worker spending in Ukiah. Ongoing Revenue and Appropriation Factors • The analysis does not include any increase in valuation, such that would occur with the maximum 2% allowable increase pursuant to Proposition 13 or that would occur based upon increased valuation upon sale. • The analysis does not take into account long-term service cost inflation, which may or may not be greater than the estimated rate of inflation. • The Ukiah Costco Project may trigger the need for additional services not accounted for in this analysis. The costs associated with these services could be meaningful, and could reduce the estimated net positive annual impacts. The likelihood of such additional costs being high, however, is deemed to be low. In summary, the Ukiah Costco Project net fiscal impact findings estimated above may change as more information and factors are considered. The results, however, suggest a very strong likelihood that the Ukiah Costco Project will result in a significant net positive fiscal impact to the City's General Fund and the Public Safety Fund. Ukiah Costco Fiscal Impact Analysis 17 ALH Urban & Regional Economics ASSUMPTIONS AND GENERAL LIMITING CONDITIONS ALH Urban & Regional Economics has made extensive efforts to confirm the accuracy and timeliness of the information contained in this study. Such information was compiled from a variety of sources, including interviews with government officials, review of City and County documents, and other third parties deemed to be reliable. Although ALH Urban & Regional Economics believes all information in this study is correct, it does not warrant the accuracy of such information and assumes no responsibility for inaccuracies in the information by third parties. We have no responsibility to update this report for events and circumstances occurring after the date of this report. Further, no guarantee is made as to the possible effect on development of present or future federal, state or local legislation, including any regarding environmental or ecological matters. The accompanying projections and analyses are based on estimates and assumptions developed in connection with the study. In turn, these assumptions, and their relation to the projections, were developed using currently available economic data and other relevant information. It is the nature of forecasting, however, that some assumptions may not materialize, and unanticipated events and circumstances may occur. Therefore, actual results achieved during the projection period will likely vary from the projections, and some of the variations may be material to the conclusions of the analysis. Contractual obligations do not include access to or ownership transfer of any electronic data processing files, programs or models completed directly for or as by-products of this research effort, unless explicitly so agreed as part of the contract. APPENDIX A: EXHIBITS Exhibit 2 Ukiah Costco Project Description, Employment, and Service Population Estimates Employment Distribution by Estimated Planned Total Type of Employment(2) Stabilized FTE Service Land Use Sq. Ft. Employment(1) Full-time (3) Part-time (3) Employment(4) Population (5) Warehouse 148,000 175-200 50.0% 50.0% 152 76 average 187.5 Gas Station 20 pumps (6) inc. above inc. above Total 152 76 Sources: "Project Description, Ukiah Costco New Warehouse and Fuel Station, Ukiah, California,"January 24, 2011, David Babcock & Associates; Environmental Science Associates; Costco Wholesale Corporation; and ALH Urban & Regional Economics. Notes: (1) Employment estimates provided in the Costco New Warehouse and Fuel Station project description. The range provided is 175-200. For analytical purposes the average of 187.50 is used. (2) Costco indicates employment is anticipated to comprise 1/2 part-time employees and 1/2 full-time employees. (3) Costco indicates typical part-time employment at Costco comprises 25 hours weekly. (4)The calculation of FTE employment is as follows: FTE Employment= (187.5".5)+((187.5".5)*(25/40)) based upon the assumptions regarding average total employment, percent full-time and part-time, and the average hours worked by a part-time employee. Figure is rounded to the nearest whole number. (5)All employees are assumed to be equivalent to one-half a resident for City average service cost purposes. This is a standard fiscal impact analysis assumptions. Figure is rounded to the nearest whole number. (6)The store is anticipated to open with 16 pumps, expanding to 20 pumps upon stabilization. Projected gas sales are anticipated to remain constant, with the sales achieved with 16 pumps being redistributed among 20 pumps following the expansion. Exhibit 3 Ukiah Costco City of Ukiah Demographic,Employment,and Tax Characteristics Data Point Value Measurement Population and Employment Base,2012 estimates City of Ukiah Population(1) 15,960 annual City of Ukiah Employment(2) 6,520 annual Estimated Service Population(3) 19,220 annual City of Ukiah Tax Rates and Select Tax Revenues City of Ukiah General Fund Property Tax Rate(4) 9.38% of 1.0%of property value Sales Tax Rate(5) Basic Sales Tax Rate, General Fund 0.75% of taxable sales amount Sales Tax Rate, Returned via Triple Flip 0.25% of taxable sales amount Total Sales Tax Rate 1.00% of taxable sales amount Measure S Sales Tax -Public Safety(6) 0.5% of taxable sales amount Vehicle in Lieu of Property Tax Revenues (7) FY 2011-2012 Adopted $1,214,585 annual Assessed City of Ukiah Valuation, FY 2011/12(8) Secured Property $1,169,395,369 Unsecured Property $80,975,556 Business License Fee(9) General Merchandise Retail $0.35 annual per$1,000 in gross receipts General Merchandise Wholesale $0.30 annual per$1,000 in gross receipts Sources: State of California Department of Finance, Demographic Research Unit,State Census Data Center,"Table 2:E-5 City/County Population and Housing Estimates," 1/1/2012;State of California Employment Development Department, Labor Market Information, LMI by Geography, Cities and Census Designated Places, current month, May 2012; Mendocino County Auditor-Controller; State of California Board of Equalization,"2009-2010 Annual Report-Statistical Appendix Table,"Table 23A; "City of Ukiah 2011-2012 Adopted Budget,"page ES-19; Mendocino County Auditor-Controller, "Assessed Valuations by District 2011-12'; City of Ukiah Application for Business License; and ALH Urban&Regional Economics. See notes on next page Exhibit 3 Ukiah Costco City of Ukiah Demographic,Employment,and Tax Characteristics Notes: (1)Estimated City of Ukiah population for January 1, 2012 per the State of California Department of Finance. (2)The State of California Employment Development Department reports May 2012 employment in Ukiah as 6,520.This is the most recent data point available as of the preparation date of this analysis and appears consistent with annual average City employment trends. (3)The service population of 19,220 is equivalent to the residential population plus 1/2 the employment base(i.e., 15,960+(0.5� 6,520).This is a standard fiscal impact assumption. (4)The Costco property is located in a Redevelopment Project Area. However,with the recent demise of redevelopment in the State of California it is assumed that by the time the Project is developed there will no longer be property tax increment revenues and the City of Ukiah General Fund will receive its default share of property tax revenues absent redevelopment.ALH Urban& Regional Economics reached out to the Mendocino County Auditor-Controller to obtain the City of Ukiah's property tax rate for a representative property not in the City's Redevelopment Project Area. Based on information provided by the Auditor-Controller it appears that the City of Ukiah's share of the base County property tax is 9.38%.Therefore,this is the figure assumed in the (5)The City of Ukiah's effective sales tax rate is 1.0%.This comprises a basic rate of 0.75%with an additional 0.25%generated pursuant to the triple flip, i.e., sales taxes diverted temporarily by the State of California but returned via other fiscal means, i.e., through property tax payments.The State of California Board of Equalization reports Ukiah's sales tax rate as 1.0%. (6)The City of Ukiah has an additional 0.5%sales tax rate.This sales tax for Measure S is due to expire in September 2015 unless the electorate votes to extend the tax.The sales tax proceeds are dedicated to public safety expenses. (7)See"City of Ukiah 2011-2012 Adopted BudgeY'page ES-19. (8)Provided by the Mendocino County Auditor. See http://www.co.mendocino.ca.us/auditor/valuations.htm. (9)Reflects annual fee for businesses licensed in the City of Ukiah, not one-time administrative fees. Exhibit 4 Ukiah Costco Incremental Property Valuation and Annual Property Tax Property Valuation Pursuant to the Cost Approach(1) City of Ukiah,2012 Dollars Item Amount Ukiah Costco Project Property Valuation Land Acquisition(2) $2,337,212 Building and Gas Station Construction Costs(3) $11,470,936 Equipment(3) $4,600,000 On and off-site Improvement Costs(3) $5,536,083 Select Soft Costs(3) $2,698,600 Financing Fees and Interest(3) $300,000 Total $26,942,831 Existing Property Tax Revenues(4) $0 Property Tax(5) Tax Rate/ Taxing Entity Allocation Factor Amount(6) Ad Valorem (Mendocino County) 0.2413°/a $65,001 Emerg Svcs CDF 0.0017°/a $455 Road 0.0275°/a $7,410 Mendocino County Animal Control 0.0019°/a $520 Li b ra ry 0.0133°/a $3,575 Promotion 0.0017°/a $455 City of Ukiah 0.0938% $25,285 Educational Revenue Augmentation Funds (ERAF) 0.1578°/a $42,510 MCFC &WCID (Water Agency) 0.0012°/a $325 Russian River Cemetery 0.0075°/a $2,015 MCRRFC &WCID 0.0014% $390 Mendocino County Office of Education 0.0415°/a $11,180 Mendocino Community College 0.0647°/a $17,420 Ukiah Unified School District 0.3448°/a $92,886 Lost Mills (7) 0.0000% $2 Tota I 1.0000°/a $269,428 Sources: Costco Wholesale Corporation; RealQuest;City of Ukiah Special Projects Administrator; Mendocino County Auditor-Controller;and ALH Urban&Regional Economics. Notes: (1)The County Assessor will value the property for property tax purposes using three approaches to value: cost; income;and comparables. For the purpose of this analysis,ALH Economics prepared a cost approach based upon currently available information.The final value upon completion determined by the County Assessor will likely differ from this value. However, based upon information available at the present time,this value and approach are believed to present a reasonable proxy for analytical purposes. (2)Appraised value of the land, i.e., $3.50 per square foot. In Summer 2011 the Ukiah Redevelopment Agency transferred the property to the City of Ukiah.The analysis assumes the property will be acquired from the City for the appraised value. (3)All construction-related costs were provided by Costco. (4)The property is currently owned by the City of Ukiah Successor Agency for Dissolved Ukiah Redevelopment Agency.Accordingly,the property is tax exempt and no property tax revenues are being generated. (5)See Exhibit 3 for the City of Ukiah share of property taxes, estimated at 9.38%of the basic 1.0%collected by Mendocino County.The tax for the City of Ukiah is both gross and incremental taxes since there are no current property taxes being generated from the property in accordance with its public ownership.The percentage shares of property taxes distributed to taxing entities was provided by the Mendocino County Auditor-Controller for a representative tax rate area in the City of Ukiah.The actual distribution for the proposed Costco property may vary from these percentages, but the variances are not likely to be substantial. (6)Figures rounded to the nearst$10. (7)Lost Mills receives a very nominal percentage share of property taxes(i.e., .000008%). Exhibit 5 Ukiah Costco Property Tax in Lieu of VLF Estimates Project Stabilization Net New or Incremental Valuation Attributable to Ukiah Costco Development City of Ukiah, FY 2011-12 Dollars Category Value Assessed Value Change City of Ukiah Secured Property Assessed Valuation (1) $1,169,395,369 City of Ukiah Unsecured Property Assessed Valuation (1) $80,975,556 Total $1,250,370,925 Property Valuation Increment Attributable to Ukiah Costco Development (2) $26,942,831 Existing Property Valuation (3) ($4,787,945) Net Increment in Property Valuation $22,154,885 Total Projected PropertyValuation $1,272,525,810 Percent Increase in City of Ukiah Property Valuation 1.77% Attributable to Ukiah Costco Development VLF in Lieu Revenue FY 2011-2012 adopted (1) $1,214,585 City Increase (Annual) Percent Assessed Value 1.77% VLF In Lieu Revenue Attributable to Ukiah Costco Development(4) $21,521 Sources: Realquest; City of Ukiah; and ALH Urban & Regional Economics. Notes: (1) See Exhibit 3. (2) See Exhibit 4. (3)While the property is being sold to Costco at an appraised value of$3.50 per square foot, parcel- specific Assessor's data available through Realquest indicate the 12 parcels that comprise all or part of the property being sold to Costco were valued at$5,571,862 for tax year 2011. The value of the parcels is currently lower than this$5.6 million figure given the City's purchase of the parcels for less. However, the assessment roll does not appear to have been updated to reflect this new value, thus the assessed valuation on record and included in the City's total assessed valuation includes the higher $5.6 million figure. The 12 parcels total 17.85 acres, or 777,546 square feet. Pursuant to the 2011 assessment year value the assessed value is therefore equal to $7.17 per square foot. This per square foot value is applied to the 15.33 acres planned for the project site to derive a current assessed valuation of$4,787,945. (4)This is equivalent to the City's FY 2011-2012 adopted VLF In Lieu Revenue multiplied by the Project's estimated 1.77°/o increase in the City's assessed valuation. Exhibit 6 Ukiah Costco Estimated Costco Project Taxable Retail Sales-Maximum and Minimum(1) City of Ukiah,FY 2011-12 Dollars Estimated Costco Sales Maximum Net Taxable Minimum Sales to Maximum Market Area and Non-Taxable Net Taxable Total(2) Retail Customers(3) Taxable(4) Sales Impacts(5) Retail Sales (6) Retail Sales(7) Retail Category [A] [B=A*85%] [C] [D] [E=B+D] [F=E*%taxable] Motor Vehicle and Parts Dealers $3,867,732 $3,287,573 $3,287,573 $0 $3,287,573 $3,287,573 Home Furnishings and Appliance Stores $10,181,237 $8,654,051 $8,654,051 ($2,000,990) $6,653,061 $6,653,061 Building Materials and Garden Equip $1,933,866 $1,643,786 $1,643,786 $0 $1,643,786 $1,643,786 Food and Beverage Stores $56,309,633 $47,863,188 $14,358,956 ($31,408,782) $16,454,406 $4,936,322 Gasoline Stations(8) $13,616,693 $13,616,693 $13,616,693 ($8,112,325) $5,504,368 $5,504,368 Clothing and Clothing Accessories Stores $3,412,705 $2,900,799 $2,900,799 $0 $2,900,799 $2,900,799 General Merchandise Stores $9,669,331 $8,218,931 $8,218,931 $0 $8,218,931 $8,218,931 Food Services and Drinking Places $1,023,812 $870,240 $870,240 $0 $870,240 $870,240 Other Retail Group $13,741,826 $11,680,552 $8,220,091 ($5,182,895) $6,497,657 $5,595,191 $113,756,834 $98,735,813 $61,771,121 ($46,704,991) $52,030,822 $39,610,272 Sources:"Costco Wholesale Warehouse Urban Decay Analysis,"Prepared for Environmental Science Associates, Inc., Prepared by ALH Urban&Regional Economics, August,2012;and ALH Urban&Regional Economics. Notes: (1)The purpose of this analysis is to estimate the ProjecYs maximum taxable retail sales and minimum net new taxable sales to the City of Ukiah.The minimum estimate is achieved by treating the sales impacts as if they all occurred in Ukiah,which is not likely to occur given the wide geographic scope of the market area and the distribution of retailers throughout the market area. (2)See Exhibit 2 in"Costco Wholesale Warehouse Urban Decay Analysis,"August 2012.This comprises the Costco store's total estimated retail sales. (3)Pursuant to the"Costco Wholesale Warehouse Urban Decay Analysis,"August 2012, it is assumed that 15%of Costco sales are non-taxable wholesale sales.See the exception for gasoline sales cited in footnote 8. (4)These figures comprise the estimated taxable component of Costco's retail sales to consumers.As cited in"Costco Wholesale Warehouse Urban Decay Analysis,"August 2012,the following percentage of retail sales are assumed to be taxable:food and beverage stores,30%;and other retail,33%of 20.73%(i.e.,the estimated share of sales that are taxable drug store sales). In the urban decay study a portion of general merchandise retailer sales are also assumed to be non-taxable because a portion of sales comprise food sales. However,since the Costco sales were separately parsed into food sales for analytical purposes,the analysis assumes that the portion of Costco sales that compete with general merchandise stores does not include an allocation for non-taxable food products.See Exhibit B-1 in the"Costco Wholesale Warehouse Urban Decay Analysis," August 2012 for the resulting taxable sales estimates. (5)See Exhibit 17 in"Costco Wholesale Warehouse Urban Decay Analysis,"August 2012.This comprises the total estimated retail sales impacts of the planned Costco store, regardless of the location of the retailer experiencing the impact.To present the most conservative analysis possible,these are the impacts figures not inclusive of demand generated by new growth. (6)The figures in this column comprise the minimum net new retail sales to the market area pursuant to the maximum market area impacts presented in the preceding column. These sales are both taxable and nontaxable,generated by retail consumers.To ensure a highly conservative fiscal impact analysis,the analysis assumes that all of these sales are diverted from existing Ukiah retailers.This is a highly unlikely occurrence given the size of the market area and geographic range of anticipated Costco retail shoppers. However,this assumption is included to provide a minimum estimate of the ProjecYs net fiscal benefit to the City of Ukiah's General Fund.See net fiscal impact analysis in Exhibit 10. (7)See footnote(3)for total to taxable sales adjustments.These adjustments are applied to the net taxable and non-taxable retail sales in column D. (8)For the purpose of analysis,all gasoline sales are assumed to be taxable,with no portion of wholesale purchases allocated to gasoline.This figure corresponds to the portion of gas sales estimated to be the taxable basis,but excluding all applicable state,federal,and local taxes(which are typically included in the price at the pump). Exhibit 7 Ukiah Costco Select City of Ukiah General Fund Revenues-Business License Fees and Sales Taxes City of Ukiah,FY 2011-12 Dollars Business License Fees Fee Per $1,000 Gross Annual 8usiness Retail Component Annual Sales Receipts(1) License Fee Costco,General Merchandise Wholesale $110,344,129 (2) $0.35 $38,620 Maximum Local Sales Impact(3) ($46,704,991) (4) $0.35 ($16,347) Minimum Net Increment $22,274 Retail Sales Tax Parameters and Retail Sales, Inflation,and Tax Information Annual Revenue City of Ukiah General Fund Sales Tax Rate(5) 0.75% Triple Flip Sales Tax Rate Equivalent(5) 0.25% Effective Sales Tax Rate(5) 1.00% Measure S Sales Tax -Public Safety(5) 0.5% Minimum Sales Tax Estimate Minimum Net Taxable Retail Sales(6) $39,610,272 Minimum Net Retail Sales Tax $396,103 Additional Measure S Sales Tax Revenues $198,051 Maximum Sales Tax Estimate Maximum Net Taxable Retail Sales(7) $61,771,121 Maximum Net Retail Sales Tax $617,711 Additional Measure S Sales Tax Revenues $308,856 Sources:"Costco Wholesale Warehouse Urban Decay Analysis,"Prepared for Environmental Science Associates, Inc., Prepared by ALH Urban&Regional Economics,August,2012;and ALH Urban&Regional Economics. Notes: (1)See Exhibit 3 for the Business License Fee Schedule.The analysis conservatively assumes that on a worst case basis all diverted retail sales will comprise a loss to the Ukiah retail sales base and thus reduce the business license fee revenues. (2)See Exhibit 2 in the"Costco Wholesale Warehouse Urban Decay Analysis,"August 2012,for the stabilized sales estimate of$120.0 million. For the purpose of the business license fee determination,the fee per$1,000 gross receipts applies to all sales excepting alcohol and tobacco,since these are already separately taxed at the state level.Assuming that Costco's alcohol sales comprise 3°/o of total sales,the amount of sales subject to the gross receipts tax would be$116.4 (3)This reflects the estimated retail sales impact of the Costco store.This impact will be spread throughout the entire market area defined for the store in the"Costco Wholesale Warehouse Urban Decay Analysis,"August 2012,which includes all of Mendocino County and much of Lake County. In an effort to be highly conservative and not overstate the potential net business license fee that will accrue to the City of Ukiah,this analysis nets out 100%of the estimated sales diversion to result in a minimum net increment in annual business license fees. (4)See Exhibit 6. (5)See Exhibit 3. (6)This figure comprises the minimum net increment of taxable sales generated by the Costco store.As with the business license fee analysis,this analysis very conservatively assumes that all of the diverted sales estimated in the"Costco Wholesale Warehouse Urban Decay Analysis,"August 2012,will occur to the detriment of Ukiah retailers in order to result in the most conservative incremental retail sales tax estimate possible.See Exhibit 6 for the cited figure. (7)See Exhibit 3.This figure corresponds with the estimated taxable sales of the Costco store irrespective of any sales diversions from existing Ukiah retailers. Exhibit 8 Ukiah Costco Select City of Ukiah General Fund Revenues- Franchise Tax and Fees, Fines � Forfeitures City of Ukiah, FY 2011-12 Dollars Franchise Tax Parameters and Franchise Tax Revenues and Population Basis Data Annual Revenue City of Ukiah FY 2011/12 Franchise Tax Revenues (1) $1,467,619 City Service Population (2) 19,220 Franchise Tax Revenues Per Service Population (3) $76.36 Project Service Population (4) 76 Project Franchise Tax Revenues (5) $5,803 Fees, Fines & Forfeitures Parameters and Fees, Fines & Forfeitures Revenues and Population Basis Data Annual Revenue City of Ukiah FY 2011/12 Fee, Fines & Forfeitures (1) $52,662 City Service Population (2) 19,220 Fees, Fines & Forfeitures Revenues Per Service Population (6) $2.74 Project Service Population (4) 76 Project Fees, Fines & Forfeitures Tax Revenues (7) $208 Sources: "City of Ukiah Adopted Budget 2011-2012, page ES-18;" and ALH Urban & Regional Economics. Notes: (1)These revenues figures are from the City of Ukiah budget for FY 2011-2012. While not generated on a per employee basis, it is a typical fiscal impact analysis convention to estimate these revenues on a per service population basis as a revenue generation proxy. The figures exclude T.V. Cable Franchise Fees as these are typically more residential than business-related. (2) See Exhibit 3. (3) Franchise tax revenues calculated on a per service population basis, excluding T.V. Cable Franchise Fees. (4) See Exhibit 2. (5) Calculated by multiplying the Franchise Tax Revenues Per Service Population by the estimated Project service population. (6) Fees, Fines & ForFeitures tax revenues calculated on a per service population basis. (7) Calculated by multiplying the Fees, Fines & Forfeitures Revenues Per Service Population by the estimated Project service population. Exhibit 9 Ukiah Costco City of Ukiah General Fund Average Cost Expenditures FY 2011-2012 Adopted Budget Fiscal Impact Factors City of Ukiah Percent Allocable Expenditure per Expenditure Expenditure per City Department FY Budget Fixed(1) Expenditures(2) Population Factor(3) Service Population(4) per Resident(5) Employee(6) General Government $2,067,296 0% $2,067,296 Service Population $107.56 $107.56 $53.78 Public Works $930,891 0% $930,891 Service Population $48.43 $48.43 $24.22 CommunityServices $1,732,504 0% $1,732,504 ServicePopulation $90.14 $90.14 $45.07 Public Safety $8,197,456 0% $8,197,456 Service Population $426.51 $426.51 $213.25 Capital Maintenance(7) $1,600,000 (7) 0% $1,600,000 Service Population $83.25 $83.25 $41.62 Total $14,528,147 0% $14,528,147 $755.89 $755.89 $377.94 Sources:"City of Ukiah Adopted Budget 2011-2012,"pages ES-23 and ESD-24;City of Ukiah Public Works Director;and ALH Urban&Regional Economics. Notes: (1)Fiscal impact studies that examine municipal expenditures on an average cost basis,such as this analysis,often assume a portion of City expenditures are fixed and will not vary with a change in the population served.The resulting variable expenditures are then allocated across the relevant population served,which could include just residents, just employees,or the service population,which includes both residents and an allocation for employees. For the purpose of this analysis,all City expenditures are conservatively assumed to be variable. In this manner,the greatest possible expenditures will be allocated to the estimated service population generated by the Project for the categories anticipated to serve employees. (2)Comprises the share of the General Fund expenditures assumed to be allocable to the population served, i.e.,total expenditures less fixed expenditures. In this case,as all expenditures are assumed to be variable,the allocable expenditures are equal on a department by department basis to each departmenYs budget. (3)The analysis assumes all expenditures are spread across the resident and employment base i.e.,the service population.This will most likely result in maximum service cost estimates since it is unlikely given the infill nature of the Project and traditional business hours that the City of Ukiah will need to increase its service capacity to sufficiently service the Project. (4)Equal to allocable expenditures divided by the service population. (5)The expenditure per resident is equal to the expenditure per service population. (6)The expenditure per employee is equal to one half the expenditure per service population. (7) This is not a General Fund budget item.However,the City of Ukiah estimates that pursuant to the City's Pavement Management Program,an annual expenditure of$1.6 million is required to maintain City streets at the current level of maintenance.The City Public Works Director suggested this item should be annually allocated to the Costco project,as it is a cost relevant to the City's service population. Exhibit 10 Ukiah Costco Annual Net Fiscal Impact Analysis(1) City of Ukiah General Fund and Public Safety Fund FY 2011-12 Dollars Net Fiscal Impact General Fund Revenues and Expenditures Categories Minimum(2) Maximum(3) Revenues (4) Property Taxes(5) $25,285 $25,285 Property Tax in Lieu of VLF(6) $21,521 $21,521 Business License Fees(7) $22,274 $38,620 Retail Sales Taxes(8) $396,103 $617,711 Franchise Fees(9) $5,803 $5,803 Fines, Fees&Forfeitures(9) $208 $208 Sub-total $471,194 $709,149 Expenditures(10) General Government $8,175 $8,175 Public Works $3,681 $3,681 Community Services $6,851 $6,851 Public Safety $32,414 $32,414 Capital Maintenance $6,327 $6,327 Sub-total $57,447 $57,447 General Fund Net Impact All Revenues and Expenses(11) $413,747 $651,702 Additional Measure S Sales Tax Revenues to to Public Safety Fund(12) $198,051 $308,856 General Fund and Public Safety Fund Net Impact All Revenues and Expenses(13) $611,798 $960,557 Source:ALH Urban&Regional Economics. Notes: (1)Includes estimated General Fund revenues less estimated General Fund expenditures. (2)The minimum net fiscal impact corresponds with the maximum sales impact scenario presented in Exhibit 6.This scenario is highly conservative and assumes that all taxable sales diverted as a result of the Costco store occur in the City of Ukiah,thus reducing the City's taxable retail sales base.This is a highly conservative assumption because sales diversions will occur in other locations besides the City of Ukiah.Three revenue sources are varied for this analysis,including retail sales tax, business license fees(see variation in business fees in Exhibit 7),and Measure S sales tax. (3)The maximum net fiscal impact corresponds with the minimum sales impact scenario presented in Exhibit 6.This would comprise no taxable sales diversions from existing City of Ukiah retailers.This scenario corresponds to the net fiscal impact analysis of the Costco store absent consideration of any existing retailer impacts. (4)Includes the most substantial revenues anticipated to accrue to the City of Ukiah General Fund resulting from the ProjecYs stabilized operations.However,there may be yet additional revenues flowing to the General Fund pursuant to the ProjecYs operations. (5)See Exhibit 4. (6)See Exhibit 5. (7)See Exhibit 7. (8)See Exhibit 6 for the taxable retail sales and Exhibit 3 for the retail sales tax rate. (9)See Exhibit 8 for the per employee revenue figures and Exhibit 2 for the estimated number of Project employees. (10)The estimated service costs per employee were derived in Exhibit 9.These costs were multiplied by the estimated number of Project employees presented in Exhibit 2. (11)Comprises revenues less expenditures. (12)See Exhibit 6 for the taxable sales range and Exhibit 3 for the Measure S sales tax rate.As with the retail sales tax estimate,the taxable sales estimate varies pursuant to the estimated taxable sales diversions. (13)Includes the Measure S sales tax revenues. APPENDIX B: TRIPLE FLIP AND CITY SHARE OF SALES TAX INFORMATION HdL Companies :ABOUT HdL http://www.hdlcompanies.com/index.aspx?page=2 ABOUT HdL WHO WE ARE . Founded in i983, HdL was established to maximize local government revenues by providing a variety of audits, analytical services and software products.We are dedicated to helping cities, counties and special districts. Hinderliter, de Llamas &Associates developed California's first computerized sales tax management program and was responsible for securing legislation that allowed independent verification of state allocations. In i99o, HdL Coren&Cone was established to provide property and documentary transfer tax services. HdL Software was formed in i996 to provide software systems for other city revenues and to link to other HdL revenue tracking systems. HdL's systematic and coordinated approach to revenue management and economic data analysis is currently being utilized by over 36o agencies in six states. Services include a variety of audits, analytical services and software products. Audit and consulting services are available for sales, use and transaction taxes, property taxes and business license fees. HdL also provides a variety of enterprise software processing tools for business licensing, code enforcement, animal control,building permits and tracking/billing of false alarms. � HdL'S HISTORY HdL was founded in 1983 by Robert Hinderliter, a former�nance director and city administrator of Commerce, California. Mr. Hinderliter developed California's first computerized sales tax management program and secured the legislation that allows independent verification of the State Board of Equalization's allocation of sales tax revenues to local governments. In i98�, Lloyd de Llamas purchased 50%of the corporate stock and the company became Hinderliter, de Llamas and Associates with a primary focus on sales tax analysis, allocation audits, and software. In 1993, a separate corporation composed of partners Paula Cone, Martin Coren, Robert Hinderliter, and Lloyd de Llamas was created to provide property tax related services, including allocation audits,trends analysis,tax increment verification,tax allocation bond fiscal services, and related software products. In i996, HdL Software LLC was established with participants Nancy Hicks, Robert Hinderliter, and Lloyd de Llamas in order to provide easy-to-use, integrated software applications for the processing and tracking of revenue related functions including business licenses,building/plan permits, animal licenses,false alarm billing and code enforcement violations. The three affiliates operate as a single,coordinated unit providing some 36o agencies with a variety of integrated services and software products. 1 of 1 7/3/2013 5:16 PM I HdL Companies : TRIPLE FLIP INFORMATION http://www.hdlcompanies.com/index.aspx?page=100 TRIPLE FLIP INFORMATION In March 2004, California voters approved Proposition 57,the California Economic Recovery Bond Act, which authorized the issuance of up to $i5 billion in bonds to close the State's budget deficit. $io.9 billion of these bonds were issued in 2004 and the remainder in 2008. To guarantee bond repayment, a dedicated revenue source was required. The revenue source provided for under the California Economic Recovery Bond Act is 1/4 of the sales and use taxes levied for local governments under the Bradley-Burns Uniform Sales Tax law.The bonds are repaid from the revenue received through the shift of the local portion of sales and use taxes plus transfers from the Budget Stabilization Account(BSA)which is a special reserve established in the State's general fund approved by Proposition 58. The confiscated local sales tax is reimbursed through a series of revenue swapping procedures.These exchanges are referred to as the"triple flip".The triple flip will continue until the bonds are retired.As of June 2009,the Department of Finance estimates that to be Spring 2oi6. HOW THE TRIPLE FLIP WORKS: Flip i o.25 of the one percent local sales and use taxes are shifted to the State to guarantee the bonds. Flip 2 Revenue lost through the shift is backfilled to local agencies with property tax revenue from the County Education Revenue Augmentation Fund(ERAF). Flip g Any shortfall in County ERAF monies needed to meet the minimum funding requirement for schools is backfilled from the State general fund. � No later than September ist of each year, the State Department of Finance is required to send a notification to each County Auditor specifying the amount of the triple flip reimbursement(backfill payment) due to each jurisdiction in the county for the coming fiscal year. Reimbursements are based upon the estimated sales and use tax revenues allocated to the jurisdiction in the prior fiscal year, plus an adjustment based upon projected statewide growth or decline. The triple flip reimbursements(backfill payments) are disbursed from this Fund in the amount set by the Department of Finance. Local jurisdictions receive disbursements from the Fund in two installments, 50% prior to the end of January, and 50%prior to the end of May. Some Auditors send the checks earlier where circumstances allow. Given that the backfill payments are based on estimates,there is a "true-up"adjustment each year.The "true-up"adjustment is added to or deducted from the following year's backfill payment. Some counties apply 100%of the "true-up"amount to the January backfill payment and some counties apply 50% of the 1 of 2 7/3/2013 5:16 PM I HdL Companies: TRIPLE FLIP INFORMATION http://www.hdlcompanies.com/index.aspx?page=100 "true-up"payment to the January payment and 50%to the May payment. Triple Flip Reports for 2oi2-i3 By County 2 of 2 7/3/2013 5:16 PN Statistical Appendix Tables-Table 23A-Board of Equalization http://www.boe.ca.gov/annual/table23a.htm � ,�W..- �,. u s �:; .« -- rs. .;; u,: � � .. : . ru .w, ac. a9'd o� ��.. s . ....... . .. ..a 'htt :tlwww.ca. av/ (,�index.htm� �. . , � � Annual Report — Statistical AppendiY Tables Table 23A— Local Sales and Use Tax Rates Imposed by California Cities July 1, 2010 (Current) s>> F`DF(pdf/2010/table23a_10.pdt� � ExGel (pdfi2010/table23a_1Q.xls) July 1, 2009 �� P[�F(pdf/2009ltable23a_09.pd� � �xcel {pdf/2009/table23a_09.xis} July 1, 2008 -";> PDF(pdf/2Q08/table23a_QB.pdf) � Wort� (pdF/20Q8/table23 QB.dac) � Excel{pdf/2008Jtable23a 08.x1s) — —..... ...... , July 1, 2007 ,, PDF(pdf/20q7itable23 a7.pdf} � Word(pdf/2QQ7/table23_Q7 dac) � EXCeI(pdf/2007/table23ab_Q7 xis) _ .. . .... July 1, 2006 :-� F'DF(pdf/2005Jtabie23a_05.pdf) � Vt/c�rd (pdf/20061table23a_06.dac} _ ._ _ _..._... 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P�3c�6ris.c�rp[7r;�t'm:e�c:atic��t M1�1ei7dormn ..........., I.t.sti A{I cifies , �'ui<�rµ. _............' .t)S Ail cifias 4lcrrr;e3d .,,... .'J,�� tvtrzrc;�,�d Tu��l�.�mnc+ ......... .�7 S���r�nr�3 , � .4k5 � L��s Bancs � V�i�Sura , .,,..,,,, � I.Df,1 C,Y��i � ' I,(ltt t��l c�t�i�:r c:itir�s �)(.,? 1�ii ottacr citYras . M4�tf�u ......,.. I.U� Alit�t�s ' Yco-ice ... ........ I.S)U Ali citi�5 �� �itz�n�y� , ,,.,......i, LEip h��€rrvt�saitt l��kcz:� � Ykataa .. ...<,...., t.t�)C) �qll�;iticas � �Aor�te��y ,.,,,...., l.GC} � 11[I�;ik�r� I ,.. E:ii;h C.ZV 3 t:,EY f�ii2ls Gf�tilia�Itd.iitiSl I".0 t.G41i32"/''s`Cft pgft;uns.I:'siA„ " l�.-,�i�) • ATTACHMENT 5A Pu bl ic Com ment durin g . FEI R Pre a rat � on p Kim Jordan From : Michael M <michaelzim52@hotmail .com> � Sent: Friday, October 11 , 2013 4:34 PM To: Kim Jordan Subject: Lighting Ref. - Costco Follow Up Flag: Follow up Flag Status: Flagged Attention Kim Jordan : Kim . . . Herewith just a reminder note regarding our conversation about potential lighting considerations for the new - Costco development due in at Airport Park next year. Living up above the valley fioor on the west side means we are very exposed to night lighting that is not directed downwards, or is reflecting up towards the hills (or night sky). A small light is astonishingly bright and much more "visible" than one would assume for the distances involved . It has to be seen to be believed . I had a friend down on Gielow Lane near River Road shine his LED flashlight at me one night and it was BRIGHT! That must be what. . .5 miles away or more from upper Oak Knoll Road where I liv.e ! ? Then I turned on my deck lights (four 60W floods) and he said it lit up my place on the mountain like a lighthouse. He was � likewise stunned at how bright it was (as my lights face the valley floor basically - and a reason I do not use them as I 'm sure it would be intrusive to someone). So it works two ways - up or down . Anyway, hopefully the Costco development is not going to offer such problems as it sounds like you in _ _ Planning, and they, are already aware of this and the " Dark Sky" initiative, etc. Thanks much . . . Michael Maltas 1575 Oak Knoll Road . Ukiah Tel . 467-9137 ' . 1 Kim Jordan From : Angela Taylor <angelpawswedding@yahoo.com> � Sent: Friday, May 10, 2013 4:46 PM To: Kim Jordan Subject: Costco Plan Follow Up Flag: Follow up Flag Status: Flagged To Whom It May Concern: I have been a resident of tJkiah since 1985 and I am very supportive of the proposed Costco Warehouse opening on Airport Park Boulevard, or anywhere in or neaz Ukiah. I feel that Costco would be a positive addition to the Mendocino County area. Too many residents travel to Sonoma County to spend their sho in __ _ P P g dollars, thus giving all the sales tax to a different county. Our emergency and other services that are paid for by sales tax income are greatly affected by this happeni.ng. Our local governments can be helped by having more shopping choices here. By being able to shop locally, less fuel is burned which is also a benifit for the environrrient. Costco is a ood em lo er who a -s a livable wa e witti beriefits and tlieir em � lo ees seem g P Y PY g � P Y quite happy to work there. Ukiah needs more jobs like this ! My medical insurance is also benificial if my family uses their phannancy, as my co-pay for generic perscriptions is zero. I would strongly urge the City of LTkiah to approve the addition of a local Costco ! Thank you, Angela Miller P. O. Box 57 Ukiah, CA 95482 707-463-2663 1 PEAI� ORCHA ASSO � IATES LLC P.O . Box 1028 LTkiall, CA 95482 April 23 , 2013 Michael Whetzel, Planning Coinmissioii - City of Ukiah � c/o City Clerk's Office - 300 Seminary Avenue � _ Ukiah, CA 95482 Dear Mr. Whetzel, As Ulciah propei-ty owners, we wonder if it's really fair to existing businesses in Ukiali to use city taxpayer money to subsidize a large international coiporation like Costco? We all expect com�etition but Ukiah businesses need a level playing field to compete. To subsidize Costco at taxpayers' expense and penalize existing businesses is not the Americari way. --- — --T-he_�ostco-traf�-c-co-ilgesti-o.ii�robl.em-has-n. ot beei�adequatel3�-a .ddresseci..W. -al.ma;�w�l�-- _ _______ . _ _ _ expand, and the added additional businesses will create greater traffic probleins. What's missing in the analysis is who will take the blame (or who's at fault) wheii the backup extends into the southbound lanes of US Highway 101 causing accidents : then the city taxpayers will pay again to try and find a solution. The only fair and reasonable approval is to require Costco (and others that will add to congestion) to fully fund traffic iinprovements that take into account Costco tra�c, Walmart's increased traffic and future traffic generated by other businesses that will be drawn to the area, Yours Truly � ' . . R. L. Garrison �������� APR � �9 2013 ���(���py� �119V 'J��o . ��. ���� ��� �� �� ►� � Q. ���� � ��� P.O . Box 1028 Ukiali, CA 95482 April 23 , 2013 Judy Piuden, Planning Commission - City of Ukiah c/o City Clerk`s Office 300 Seminary Avenue Ukiah, CA 95482 Dear Ms. Piuden, As Ukiah property owners, we wonder if it's really fair to existing businesses in Ukiali to use : city tax�ayer money to subsidize a large international coiporation like Costco? We all expect competition but Ukial� businesses need a level playing field to compete. To subsidize Costco at taxpayers' expeiZSe and perialize existing businesses is not the Americaii way. - ------ --T-I�e-Costco-tr-a.ff.cco.ngesti.o.n-�r�obl.eiia_.lias_no.t-been_adequatel_y_addi�essad._W_ _a1maL-t wi1L____ __ . _ __ —. _ expand, aiid the added additional businesses will create greater traffic problems . What's inissing iii the analysis is who will take the blame (or who's at fault) when the backup extends into the southbouiid lanes of US Highway 101 causing accidents : then the city taxpayers will pay again ' to try and find a solution. : The only fair and reasonable approval is to require Costco (and others that will add to congestion) to fully fund traffic improvements that take into account Costco traffic, Walmai-t's iiicreased traffic aiid future traffic generated by other businesses that will be drawn to the area . Youis Truly s I��CEiVE � ° AP� 2�9 2013 R. L. Garrison �� � 9�ViN� D� PEA1? ORCHA ASSOCIATE � I,LC P. O . Box 1028 Ukiah, CA 95482 Apri123 , 2013 Jason Brenner, Planning Coirunission � - City of Ukiah c/o City Clerk's Office 300 Seminary Avenue Ukiah, CA 95482 Dear Mr. Bremier, As Ukiah property owners, we wonder if it's really fair to existing businesses in Ukiah to use city taxpayer moiZey to subsidize a large international corporation like Costco? We all expect competition but Ukiali businesses need a level playing field to compete. To � subsidize Gostco at taxpayers' expense and penalize existing businesses is not the American way. - --------T-he-Castco- tr-affi.c-con.gest-i.on-.probl.em laas_no.�b.eeii�dequatel3!addr�essed�V_altnat-t_will__ .___. __ _. ____ _ _ __ expand, and the added additional businesses will create greater traffic probleins. What's missing in the analysis is who will take the blame (or who's at fault) when the backup extends into the southbound lanes of US Highway 1 O1 causing accidents : then the city taxpayers will pay again to try and find a solution. The only fair and reasonable approval is to require Costco (and others that will add to congestioii) to fully fund traffic improvements that take into account Costco traffic, Walmai-t's increased traffic and future traffic generated by other businesses that will be drawn to the area . Yours Truly ��� � RECEIi/E� R. L. Garrison APR 2�9 2013 crivo� u�w ruu�vnv� �E�r PE�.lZ O1ZCI3A ASSOCIATES LLC P.O . Box 1028 � Ukiali, CA 95482 April 23 , 2013 Linda Sanders, Pla�uiing Coinmission City of Ukiah c/o City Clerk's Of�ce 300 Seminary Avenue Ukiah, CA 95482 Dear Ms . Sanders, As Ukiah property owners, we wonder if it's really fair to existing businesses in Ukiah to use city taxpayer inoney to subsidize a large international coiporation like Costco? We all expect competition but Ukiah businesses need a level playing field to compete. To subsidize Costco at taxpayers' expense and penalize existing businesses is not the Ameiican way. --T-he-C-ostco-tra-ffie-eoilgestioil pr-oblem lia�not been-adequ-atel-y�ddi-essed.—W-alnlar-t will - -- ---- -- - --- - _ expand, and the added additional businesses will create greater traffic problems . What's missing in the analysis is who will take the blame (or wl�o's at fault) when tlie backup extends into the southbound lanes of US Highway 101 causing accidents : then the city taxpayers will pay again to try a�id find a solution. The only fair and reasonable approval is to require Costco (and others that will add to congestion) to fully fund traffic improvements that take into account Costco traffic, Walmart's iiicreased traffic aiid future traffic generated by other businesses that will be drawn to the area. Yours Tnzly ° RECEIV � o E� R. L. Garrison AP� 2 9 2013 ' �o� ur� �u�unv� u��r PEAI? ORCI3A ASSOC �r�'I'ES LLC P.O. Box 1028 Ukiali, CA 95482 April 23 , 2013 Kevin Doble, Planning Cominission - City of Ukiah � c/o City Glerk's Office 300 Seminary Avenue Ukiah, CA 95482 Dear Mr. Doble, . As Ukiah property owners, we wonder if it's really fair to existing businesses in Ukiah to use city taxpayer moriey to subsidize a large international coiporation like Costco? We all expect competition but Ukiah businesses need a level playing field to compete. To subsidize Costco at taxpayers' expense and penaliae existing businesses is not the American way. _ The_Costco. tr.a.ffic co.ngestio.n_problein. .lias not_been adequately addressed. Walmart will expand, and the added additional businesses will create greater traffic problems. What's missing iii the analysis is who will take the blame (or who's at fault) when the backup extends into the southbound la.nes of US Highway 101 causing accidents : tlien the city taxpayers will pay again to try and find a solution. The only fair and reasonable approval is to require Costco (and others that will add to congestion) to fully fund traffic improvements that take into account Costco traffic, Walmai-t's ' increased traffic and future traffic generated by other businesses that will be drawn to the area . Yours Truly ,l . a R. L. Garrison RECEfVE� AP� � 9 2013 cmr� u�Ft 'I�NNIN6 DE@T. 1 Attention : KIM JORDAN I am another voice to be heard and I do not want another BIG BOX STORE come to Ukiah ! And, I do not want Costco to come here . I ' m with so many others who thinks this is rediculous and added burden to the Airport Blvd complex ( mess ) . I was also against an expansion of Walmart . In fact I would have preferred that Walmart didri � t _ exist here at all ! We did nicely without it . It only brought in more people to our once small nice town. They wonder why the downtown is drying up, then they let these big box stores come in and take away from downtown business . What in the world is wrong with these super- visors and whoever else wants more big box stores? I VOTE NO ON COSTCO ! ! Sincerely, Barbara Beck RECEI'f,/�� MAR 1 � � 013 rw�u�� �o I`�� � ,��, �.�, �, f�kx,� . �� � � Kim Jordan From : Gail Zettel <zettel@pacific.net> � Sent: Tuesday, March 26, 201310:42 AM To: Kim Jordan . Subject: Costco . Follow Up Flag: Follow up Flag Status: Flagged As a responsible tax paying citizen, I support the improvements necessary to bring in Costco and if by supporting that other box stores then so be it. Here are the reasons I support a Costco: 1 . The revenue it will acquire from taxes to help pay for our growing community 2. T'hat it is a company with a reputable practice for supporting their workers with a decent wage and medical -- coverage (unlike Walm�.rt!) 3 . 1'hat the green savings it might reduce in our carbon print with no more trips to Santa Rosa 4. The employment opportunities it will provide with our growing populatiori and no currently limited employment opporhxnities ava.ilable . These are just some of the reasons I can think of, I'm sure �their aze lots more but when looked at with two columns for plus and minus. I see the benefits outweigh the negatives. I do realize the carbon emissions may not be reduced as people up north will make a journey to the store, but again, I'm hoping we can make vehicles more greener friendly and affordable in the near future. I don't however, support WALMART! But again, they do provide products that are affordable for our working class population, I just hope someday they will pay their employees a decent wage and medical coverage. 1"hank you for providing the opporiunity to express this through email. Respectfully, Gail Zettel ' �.�Ve,�, ���,�5' G�rna�;�" ►nczl. c ��� � � � Kim Jordan From : David Nieskoski <davenieskoski@gmail.com> � Sent: Thursday, March 21 , 201311 :35 AM To: Kim Jordan . Subject: costco Follow Up Flag: Follow up Flag Status: Flagged 3-21 - 13 hello, just registering a quick opinion re: Airport Park. i'm not opposed tp costco per se, but it should be done right, and a sensible slow appoach -- - to the future development of that area is called for. i live in talmage, so i'm always driving near Airport Blvd. - first change needed is 'swifching' 2lanes to turn left, instead of having 21anes go siraight on talmage rd. shouldn't really cost too much. second, new freeway entrance is needed further south to take pressure off the north end. also, a 'light' at the 4-way intersection where the new steakhouse is located. 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S �� d , { � y` i � � 5 h `. � t � r .}�+ � � x n . t j �{ . j . � I a 5k� ��i �' b vi dt 7 '-L . � F a } -.� ♦ S t hy i r + 4 . . f a..�r. � 1 J. ? � , � '� i � v #5 S nl ?f � �t� . � i 7 «t . i T, - fjf f 2{ i .� �. . lr r'4 � '� t I � � � � . . ' 11 �, v 1 f . ! F ) J .� k � } 1 � .l �� l 4t1 r . {, f � 1. � 1 l . 't I .. n� fi.,:'' . � F > +' � ' .� ; �..ta(; �. i.� �^ , F � 3 � ` , 4 � . Kim Jordan From: Sally Palacio <sallypalacio@hotmail. com> � Sent: Saturday, March 16, 2013 6:29 AM To: Kim Jordan Subject: Airport Park This big boxed area is very bicycle unfriendly. Interesting that Hastings Road to Airport Blvd has nice bike lanes, and though Airport Bivd itself has plenty of road-room to have bike lanes, they've not been added . The parking lots around these stores are treacherous for bikers. Parking lots could have bike lanes alongside the main car entrances to the lots and paralleling pedestrian cross-walks. All planning should include accommodating bicycies as well as pedestrians. ZeC. 2tU�C�' �� C �c� � w��� � � 3` � S' � b�j G� �j�� � l � Kim Jordan From : TERESA <teriwelis@pacific. net> � Sent: Saturday, March 16, 2013 1 : 56 PM To: Kim Jordan Subject: Fresh Air Follow Up Flag : Follow up Flag Status: Flagged Dear Kim, I want to implore you and those around you whose decisions will have a far reaching and permanent effect on this community, one of the most beautiful towns in Northern California and, frankly, one of the most beautiful places on earth (mountains, vineyards, orchards, fresh air, wide open spaces, bird song, etc. ) to NOT PERMIT -- the "installation" of yet another big box beast in our midst. If such plans are implemented, the blight of traffie congestion in and around Ukiah (not just Airport Park), freeway back up, noise, pollution, and the general mayhem that will take over the entire town of Ukiah throughout the week, 7 days a week, will be constant. WHAT A SHAME ! Certainly there must be a better alternative. Teresa Wells . �,eC. ¢ tV'o1h a��-d� Gl� � G�rn�n� �,�r--� 3 ` � S ��t � � d,.v, ' � � ATTACHMENT 5B Pu bl ic Com ment i n Res onse to p Public Notice Kim Jordan From : Darrell Martin <teammartin@att. net> Sent: Monday, November 11 , 2013 9:54 AM To: Kim Jordan Subject: Costco Project Follow Up Flag : Follow up Flag Status: Flagged An e-mail to show my support for the Costco project. Just like my parents I am looking forward to shopping there in 2014 as well... . Lucas W Martin i Kim Jordan From : Darrell Martin <teammartin@att. net> Sent: Monday, November 11 , 2013 9:53 AM To: Kim Jordan Subject: Costco Follow Up Flag : Follow up Flag Status : Flagged HI Kim, A quick e-mail to show our support for the Costco project... . . Looking forward to shopping there in 2014 Darrell & Lori Martin _ i Kim Jordan From : Darrell Martin <teammartin@att. net> Sent: Monday, November 11 , 2013 9:55 AM To: Kim Jordan Subject: Costco Project Follow Up Flag : Follow up Flag Status: Completed Hi Kim, This is Lori's mom, Liz Timko, I don 't own a computer, so i am using there 's to show my support for the new Costco . I can 't wait to shop there in 2014... . . Elizabeth G Timko 1 ' Kim Jordan From : Dave Hull <dhullins@yahoo.com > Sent: Thursday, October 31 , 2013 3:08 PM To: Kim Jordan Subject: Re: Costco Environmental Impact Report and Rezone Public Notice Follow Up Flag : Follow up Flag Status : Completed Kim, I will try to make it on the 21rst but I want you to know I support this project. Our community needs this in many ways. Although the argument I hear is it could hurt other businesses we are losing tremendous tax dollars to Sonoma county and it only makes sense to keep it here as well as provide our community with services they - - offer and go out of town to get currently. Thank you. Dave Hull Dave Hull Insurance Agency 376 East Gobbi St Ste A Ukiah, CA 95482 Ph : 707-462- 6506 Fx : 707-462- 6508 From : Kim Jordan <kiordan(c�cityofukiah .com > To: "Adam Drake (drakeae an.vahoo.com )" <drakeae�vahoo.com >; Albert Krauss <alkrauss3221 Ca�pacific. net>; Albrecht <albrecht al�.pacific. net>; Ali <rainchick96(a�yahoo.com >; Angela Taylor <anqelapawswedding@yahoo .com >; Arlene Shippey <ashippevCa�pacific. net>; Better Longcrier <8ailonctcrier(�comcast. net>; Bev Rae <imsum12(cilicloud .com >; Bill Daniel <danielsteel(a�saber. net>; Bonnie Veblen <bonnie(c�bonnieveblen .com >; 'Brian Korngay' <onequtta(�.pacific. net>; 'Catherine Woskow' <info catherinewoskow.com >; 'Chelsea Shuler' <ccshulerCa�vmail .com >; 'Dan Smith' <Dantsmithi@aol .com >; "'Dave Hull (dhullins(a�vahoo.com )"' <dhullins(c�vahoo.com >; 'Dave Smith' <qrizzleqritz(cD.gmail .com >; 'David Duong' < 168duonaCc�qmail .com >; 'David Nieskoski' <davenieskoskiCc�amai► .com >; 'Debra Thompson' <wseattledebCa�att. net>; 'Dennis Slota' <dennisndorina.pacific. net>; Dennis Smart <u2bsmart@yahoo.com >; Edward Mills <millschoq(c�qmail .com >; Gail Zettel <zettel(c�pacific. net>; Gregg Young <pvtepadirectorCa�pottervallevtribe.com >; Hegan <heqan an.sonic. net>; Helen Sizemore <helensizeCa�amail .com >; Henry Sadowski <UkiahCACu�tutorinqcenter.com >; "Holly W . Roberson (hrobersonCa�rmmenvirolaw.com )" <hroberson(a�rmmenvirolaw.com >; Jeffrey Blankfort <jblankfortCc�earthlink. net>; Jerry Wheeler <igwCa�huqhes . net> ; "If�willitsonline.com " <ifhCa�willitsonline.com >; 'Jim Slaught' <islaught(c�lee-associates.com >; 'Jim Sligh' <slick ,pacific. net>; 'Joan Giannecchini' <joangianCa�qmail .com >; 'Joan Vivaldo' <i2vivaldo@gmail .com >; 'Julie Allen' <sixinthefamilvCc.�me .�com >; 'Karen Rifkin' <karenrifkin(c�qmail .com >; 'Kathie Godec' <kqodeclandCa�saber. net>; k1m93@yahoo.com <Imk93na.vahoo .com >; kopperjd@omsoft.com <kopperid cC�.omsoft.com >; Lloyd Gregory <II_oydrov1960Ca�yahoo.com >; Marilyn Crayton <doodahlandqourdsna.hotmail .com >; Marlene Shupe <ukiahpaperCc�sbcqlobal . net>; Mary Anne Miller <ma-miller(a�msn .com > Cc: "Kevin Doble (kdobleCa�doblethomas .com )" <kdoble(a�doblethomas .com >; Laura Christensen ' <IauraemCa�sbcqlobal . net>; Linda Sanders <kaderli(a�iuno.com >; "Mike Whetzel (tmaviationCa�pacific. net)" <tmaviation(a�pacific. net>; "Pruden , Judy" <hortenseCa�pacific. net>; Alan Nicholson <alan c(�.anDesianStudio.com >; Howie Hawkes <howieCa�hawkesconstruction .com >; Nick Thayer <lateafternoon cni.sbcalobal . net>; Tom Hise <hiseaia(a�pacific. net>; Tom Liden <tomliden (c�pacific. net> Sent: Thursday, October 31 , 201312: 39 PM Subject: Costco Environmental Impact Report and Rezone Public Notice � Attached is the public notice for the Planning Commission public hearing on the Costco EIR and rezoning scheduled for Thursday November 21 st . The notice also includes a City Council public hearing notice in the event the Planning Commission makes a recommendation to the City Council on the EIR and rezoning at the November 21 st meeting. The EIR will be available tomorrow, November 1 st. Kim Jordan Senior Planner City of Ukiah Planning and Community Development Department 300 Seminary Avenue, Ukiah, CA 95482 (707) 463 -6207 (707) 463 -6204 fax website: www. cityofukiah.com<http ://www. cityofukiah. com/> 2 C � — n � � rc� pr C� � � � N � n C� � � ov (n � � C� � � � WO � C� � — (l� � C� � � D O = � � D � OX = < O0m — OD = � c � C O = � � D � O = < CC� O � Z � O � < Z . . Omo � z ?� O or Z � O � < ZO — (r� _ � ^ Z � Oz � '-' z � C� S� r � �-. zmm � < � � z � pn � zzm � � � � Nmm � � p � Nm � � � Nm < � Nz � NmmO � = � mmN � nr V C ^ � � � � � � � � � � � C m � � � C p � Z � � � � C � � � j � O � OC ` J z . . N N m 0 � � � N N m — � z � � N ITI = � . . 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COSTCOWHOLESALECORPORATION cnuFORNin paE���F� �a �EwA� Ar��� �E ��� ^^� p 1 ATTACHMENT 1 2 3 RESOLUTION NO. 4 5 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF UKIAH 6 MAKING FINDINGS PURSUANT TO PUBLIC RESOURCES 7 CODE (��PRC'7 SECTION 21081 AND CALIFORNIA 8 ENVIRONMENTAL QUALITY ACT ("CEQA") GUIDELINES 9 SECTION 15091 AND A STATEMENT OF OVERRIDING 10 CONSIDERATION IN ACCORDANCE WITH PRC §21081(b) 11 AND GUIDELINES §15093 IN CONNECTION WITH THE 12 DECISION TO CERTIFY THE COSTCO WHOLESALE PROJECT 13 ENVIRONMENTAL IMPACT REPORT AND APPROVE THE 14 COSTCO WAREHOUSE STORE AND FUELING STATION 15 PRO)ECT 16 17 WHEREAS: 18 1. The City Council has certified as adequate and complete an Environmental Impact Report 19 ("EIR")for the Costco Wholesale Project. The EIR consists of a Draft Environmental Impact Report, 2 0 dated January 2013, ("DEIR"), and a Final Environmental Impact Report, including a response to 21 comments, dated November 2013, (��FEIR'�; and a Mitigation Monitoring and Reporting Program; 22 and 23 2. The Project includes a Rezoning to an amend to the Airport Industrial Park Planned 2 4 Development to change the Land Use Designation of the Costco Project site to Retail Commercial 25 from Industrial/Auto Commercial and Light Industrial/Mixed Use and a Site Development Permit in 2 6 order to allow the construction of a 148,000 square foot membership-based retail store and 20-pump 2 7 fueling station on a 15.33 acre site on the east side of Airport Park Boulevard between Ken Fowler 2 8 Auto Center and the southern terminus of Airport Park Boulevard; and 2 9 3. The EIR has identified significant environmental impacts of the Project; and 30 4. The EIR has determined that all of the project specific adverse environmental impacts 31 cannot be mitigated to acceptable levels; and 32 5. The Final EIR has found that Air Quality, Transportation and Traffic, and Global Climate 33 Change impacts cannot be mitigated to a level considered less than significant; and 3 4 6. As stated below, the City Council has made the findings and the statement of overriding 35 considerations required, where, as here, a project has an adverse environmental impact that cannot 3 6 be mitigated to a level of insignificance; and Costco Wholesale Project Environmental Impact Report City Council Resolution 1 December 4,2013 1 7. The Project Proponent hereby undertakes a legally binding commitment to comply with 2 the mitigation measures under the Project Proponent's control, which are incorporated into the 3 Project and/or included as conditions of project approval; and 4 8. The City Council has determined to approve the Project; and 5 9. The City Council has based its decision on the record which includes those items identified 6 in Public Resources Code Section 21167.6(e), including, but not limited to, the EIR, including the 7 appendices to the EIR and the stafF reports; and 8 10. The record of proceedings upon which this decision is based, including the Costco 9 Warehouse EIR and Costco Warehouse and Fueling Station project file, is maintained in the ofFice of 10 the Planning and Community Development Department, Civic Center, 300 Seminary Avenue, Ukiah, 11 CA 95482, as the custodians of the record, and is available for public inspection upon request of the 12 Director of Planning and Community Development or his designee; and 13 11. PRC section 21081 and CEQA Guideline section 15091 provide that the City shall not 14 approve or carry out a project for which an EIR has been completed which identifies one or more 15 significant environmental impacts, unless it makes specified findings; and 16 12. PRC section 21081(b) and CEQA Guideline section 15093 require a Statement of 17 Overriding Considerations for a project that will have any unmitigated adverse environmental 18 impacts; 19 2 0 NOW,THEREFORE, BE IT RESOLVED that the City Council of the City of Ukiah finds as follows. 21 1. The EIR was prepared and made available for public review and comment in full 2 2 compliance with the procedures set forth in CEQA and the CEQA Guidelines. 2 3 2. The EIR was considered by the Planning Commission at a public meeting on November 21, 2 4 2013 and the Planning Commission voted to recommend the City Council certify the EIR; 25 and 2 6 The EIR was considered by the City Council at a public meeting on December 4, 2013. 2 7 3. The City Council has considered all documents submitted during the public comment 2 8 period for the EIR and all testimony presented during its meetings as well as the EIR, the StafF 2 9 Reports, dated November 21, 2013 December 4, 2013, and the Costco Warehouse and Fueling 30 Station project files. The StafF Reports are incorporated herein by reference. The City Council has 31 independently reviewed and analyzed this resolution and the EIR. Costco Wholesale Project Environmental Impact Report City Council Resolution 2 December 4,2013 1 4. The Project is described in the EIR, including the DEIR at pp. 2-1 to 2-14,and FEIR pp. 4-1 2 to 4-5. This description is incorporated herein by reference. 3 5. The EIR evaluated the impacts of the Project itself as well as its impacts in combination 4 with impacts from past, present and probable future projects. Those impacts, both individual and 5 cumulative, along with recommended mitigation measures and suggested conditions, are 6 summarized in Table ES-1: Summary of Impacts and Mitigation Measures, FEIR pp. ES-3 to ES-14. 7 6. Measures designed to avoid or substantially lessen the significant environmental efFects of 8 the Project as identified in the EIR are set forth in the Mitigation Monitoring and Reporting Plan 9 ("Plan"),attached hereto as Exhibit A and incorporated herein by reference. The measures constitute 10 binding commitments of the Project Proponent, if the Project is approved by responsible agencies 11 upon acceptable conditions and undertaken by the Project Proponent and those measures shall be 12 incorporated into the Project and monitored in accordance with the Plan. 13 14 7. Aesthetics. 15 Project Specific Impacts(Liaht and Glare�: The EIR concluded implementation of the Project 16 may create a new source of substantial light or glare which could adversely affect daytime or 17 nighttime views of the area. The EIR identified mitigation measures that would reduce this impact to 18 a less than significant level. The mitigation measures include: locating, aiming, or shielding light 19 fi�ures to minimize light trespass over property lines; use of full cut-off and night-time friendly 2 0 fi�ures; preparation of a photometric plan that complies with specific quantified light levels; and 21 turning ofF all or 50% of parking lot lighting one hour after store closure. 2 2 The Project Proponent commits to these mitigation measures. The City Council finds that these 2 3 mitigation measures will avoid or reduce to insignificance the adverse environmental effect of 2 4 potential light and glare. 25 2 6 8. Geology and Soils. 2 7 Project Specific Impacts(Seismic Ground ShakinqZ The EIR concludes that the Project could 2 8 expose people to injury or structures to damage from potential rupture of a known earthquake fault, 2 9 strong ground shaking, seismic-related ground failure, or landslides. The EIR includes mitigation 3 0 measures that would reduce the seismic ground-shaking impacts to a less than significant level. The 31 mitigation measures include: preparation of a site-specific design level geotechnical report prepared Costco Wholesale Project Environmental Impact Report City Council Resolution 3 December 4,2013 1 by a registered geotechnical engineer to be submitted to the Building Services Division as part of the 2 building permit submittal required for construction of the Project; incorporation of the 3 recommendations included in the geotechnical report into the foundation design, earthwork, and site 4 preparation Project plans; and that the Project structural engineer review site specific investigations, 5 provide any additional mitigations necessary to meet Building Code requirements, and incorporation 6 of all applicable mitigation measures from the investigation into the structural design and ensure that 7 all structural plans meet current Building Code requirements; City review of all Project plans and other 8 relevant construction permits for compliance with the applicable geotechnical investigation and Code 9 requirements. 10 Project Specific Impacts (Liquefaction and Earthquake Induced SettlementZ The EIR 11 concludes the Project could expose people to injury or structures to damage from potential 12 liquefaction and earthquake induced settlement. The EIR includes mitigation measures that would 13 reduce the liquefaction and earthquake induced settlement impacts to a less than significant level. 14 The mitigation measures include: submittal of a site-specific, design level geotechnical investigation 15 prepared by a registered geotechnical engineer that complies with all state and local code 16 requirements, includes site specific mitigations for mitigation of liquefiable soils; identified mitigations 17 reviewed for compliance with CGS Geology Guidelines related to protection of public safety from 18 liquefaction; incorporation of all mitigations in the site specific mitigations into the Project plans for 19 foundation design, earthwork and site preparation; review of the site specific recommendations by 2 0 the Project structural engineer and the inclusion of recommendations form the Project structural 21 engineer into the structural design plans and compliance of all structural plans with current Building 2 2 Code requirements; registered City geotechnical engineer or third party engineer retained to review 2 3 the geotechnical report and site-specific geotechnical investigation, approve the final report, and 2 4 require compliance with all geotechnical mitigations; and City review of Project plans for grading 2 5 foundations, structural, infrastructure, and all other relevant construction permits to ensure 2 6 compliance with the geotechnical investigation and Code requirements. 2 7 Project Specific Impacts(Fill Soils): The EIR concluded that the Project could be located on fill 2 8 soils that are potentially unstable, or that could become unstable as a result of the Project, and 2 9 potentially result in on- or off-site landslide, lateral spreading, subsidence, liquefaction or collapse. 30 The EIR includes mitigation measures that would reduce this impact to a less than significant level. 31 The mitigations include all of the mitigations for seismic ground-shaking, liquefaction, and Costco Wholesale Project Environmental Impact Report City Council Resolution L� December 4,2013 1 earthquake induced settlement identified above. 2 The Project Proponent commits to these mitigation measures. The City Council finds that these 3 mitigation measures will avoid or reduce to insignificance the adverse environmental effect on 4 geology and soils. 5 6 9. Hazards and Hazardous Materials. 7 Project Specific Impacts: The EIR concluded that during construction,the Project could create 8 a hazard to the public or environment through upset or accident conditions involving the use release 9 of hazardous materials or the release of hazardous wastes to the environment resulting from 10 contaminated soil and/or groundwater. Although the available studies suggest no contaminated soil 11 and/or groundwater would be found on site, mitigation has been included in the unlikely event 12 contamination in encountered. The mitigation measures would reduce this impact to a less than 13 significant level. The mitigation measure includes: the halting of work if contaminated soil and/or 14 groundwater is suspected or discovered during Project construction activities; identification of the 15 type and e�ent of the contamination in coordination with overseeing authorities; development of an 16 appropriate method to remediate the contamination; and determination of the appropriate disposal 17 method. 18 The Project Proponent commits to these mitigation measures. The City Council finds that this 19 mitigation measure will avoid or reduce to insignificance the adverse environmental effect on hazard 2 0 and hazardous materials. 21 2 2 10. Hydrology and Water Quality. 23 Project Specific Impacts (Dewatering and Discharge): The EIR concluded that subsurface 2 4 excavation during Project construction could require dewatering which may result in a discharge that 25 could adversely affect water quality. The EIR includes mitigation measures that would reduce this 2 6 impact to a less than significant level. The mitigation measures include: coordination with the City 2 7 regarding dewatering activities and compliance with provisions of the permit; applicant Submittal of 2 8 a Report of Wastewater Discharge and Application for NPDES Permit along with a feasibility study for 2 9 the reuse of the groundwater to RWQCB; and discharge flows only upon receipt of the Discharge 3 0 Authorization Letter from the RWQCB (mitigation measure 3.6.2). 31 Project Specific Impacts (Impervious Surfaces and Runoff�: The EIR concluded that the Costco Wholesale Project Environmental Impact Report City Council Resolution �j December 4,2013 1 installation of new impervious surfaces associated with the Costco building and parking lot would 2 increase the impervious surFaces on the site which could decrease stormwater infiltration and 3 increase stormwater flows, causing downstream flooding, erosion, or sedimentation. The EIR 4 includes mitigation measures that would reduce this impact to a level considered less than significant. 5 These mitigations include: preparation and submittal of a Final Drainage Plan by the Applicant to the 6 City Engineer and North Coast Regional Water Quality Control Board for the final design/plan of the 7 Project that includes the proposed storm drainage system, vegetated swales, and water quality 8 features; storm water system designed, implemented, and maintained such that there would be no 9 net increase in Project condition downstream runoff; Final Drainage Plan based on modeled runofF 10 volumes and flow rates specific to the with-Project conditions; design and implementation by the 11 Applicant of volume- and/or flow- based Treatment Control Best Management Practices (BMPs) as 12 defined in attachment 4 of the State Water Resources Control Board small municipal separate storm 13 sewer systems(MS4s) General Permit; and submittal of design drawings and any related documents 14 or specifications to the City of Ukiah and North Coast Regional Water Quality Control Board prior to 15 implementation (mitigation measure 3.6.4). 16 Cumulative Impacts: The EIR concludes implementation of the Project, in conjunction with 17 other foreseeable development in the City, could result in cumulative hydrology and water quality 18 impacts. The EIR includes mitigation measures that would reduce this impact to a level that is 19 considered less than significant. The mitigations include all of the mitigations for impervious surfaces 2 0 and runoff as described above (mitigation measure 3.6.4). 21 The Project Proponent commits to these mitigation measures. The City Council finds that these 22 mitigation measures will avoid or reduce to insignificance the adverse environmental effect on 2 3 hydrology and water quality. 24 2 5 11. Biological Resources. 2 6 Project Specific Impacts �Special Status Species�: The EIR concluded construction-related 2 7 activities could afFect special status species (nesting birds). The EIR includes mitigation measures 2 8 that would reduce this impact to a level considered less than significant. The mitigation measures 2 9 include: preconstruction survey by a qualified biologist of all potential habitats within 30 days of the 3 0 start of grading or other construction-related activities if construction will occur during bird nesting 31 season (February 15 through August 31); in the event an active nest is found, a no-work buffer zone Costco Wholesale Project Environmental Impact Report City Council Resolution 6 December 4,2013 1 is required or as required by the Department of Fish and Game; and no mitigation is required if the 2 preconstruction survey indicates nests are inactive or potential habitat is unoccupied (mitigation 3 measure 3.12.1). 4 The Project Proponent commits to these mitigation measures. The City Council finds that these 5 mitigation measures will avoid or reduce to insignificance the adverse environmental effects on 6 biological resources. 7 8 12. Cultural Resources. 9 Project Specific Impacts(Archeological and Paleontological Resources�: The EIR determined 10 that ground disturbing activities associated with implementation of the Project could result in a 11 substantial adverse change to previously unknown archeological or paleontological resources and 12 identified mitigations to reduce this impact to a level considered less than significant. These 13 mitigation measures include: ceasing activity in the vicinity of the find until the find is evaluated by a 14 qualified archeologist and a Native American representative; notifying the City of Ukiah in the event 15 the find may be significant; development of a treatment plan for resources determined to be 16 significant; and consultation with Native American representatives in determining the appropriate 17 treatment for prehistoric or Native American cultural resources (mitigation measure 3.14.2). 18 Project Specific Impacts (Discovery of Human RemainsZ The EIR also determined that 19 ground disturbing construction activities associated with implementation of the Project could result in 2 0 damage to previously unknown human remains and identified mitigation measures to reduce this 21 impact to a level considered less than significant. These mitigation measures include: compliance 22 with Health and Safety Code Section 7050.5 which requires no further disturbance until the County 23 Coroner has made the necessary findings as to origin and disposition pursuant to PRC Section 2 4 5097.98.; coroner notification of the Native American Heritage Commission (NAHC) in the event the 25 remains are determined to be of Native American descent; and NAHC determination of the Most 2 6 Likely Descendent, who will assist in determining disposition of the remains. 2 7 The Project Proponent commits to these mitigation measures. The City Council finds that these 2 8 mitigation measures will avoid or reduce to insignificance the adverse environmental effects on 2 9 cultural resources. 30 31 Costco Wholesale Project Environmental Impact Report City Council Resolution 7 December 4,2013 1 13. Transportation and TrafFc (Public Transit, Pedestrian, and Bicycle Facilities). 2 Project Specific Impacts: The EIR determined that implementation of the Project would 3 conflict with adopted policies, plans, or programs regarding public transit, pedestrian, or bicycle 4 facilities or otherwise decrease the performance or safety of such facilities. The EIR identified 5 mitigation measures that would reduce this impact to a less than significant level. These mitigation 6 measures include: providing a location for a bus shelter on the Project site and construction of a 7 concrete pad for a bus shelter; construction of sidewalks as shown on the Project plans; installation 8 of high visibility crosswalks across driveway entrances to the site and installation of ADA compliant 9 curb ramps; installation of pedestrian connections from the Project frontage and main parking area to 10 the store entrance; installation of a Class III bike route on Airport Park Boulevard; and installation of 11 bike parking as required by Airport Industrial Park Planned Development Ordinance 1098. 12 The Project Proponent commits to these mitigation measures. The City Council finds that these 13 mitigation measures will avoid or reduce to insignificance the adverse environmental efFects on Public 14 Transit, Pedestrian, and Bicycle Facilities. 15 16 14. Transportation and TrafFc (TrafFc Volume and Queuing). 17 Project Specific Impacts (Existing Plus Project ConditionsZ The EIR concludes the Project 18 would increase traffic volumes on area roadways under Existing Plus Project Conditions. The analysis 19 in the EIR indicates the level of service (LOS) at the intersection of Airport Park Boulevard/Talmage 2 0 Road would not meet the acceptable LOS established by the general plan. General Plan Circulation 21 and Transportation implementation measure CT-16.4(e) establishes the acceptable LOS for 22 signalized intersection and four-way stops as LOS D. Under Existing Plus Project Conditions, the 23 intersection of Airport Park Boulevard/Talmage Road would operate at LOS E. In addition, queuing 2 4 would exceed available storage in two locations: 1)westbound Talmage Road/Airport Park Boulevard 2 5 left turn; and 2) southbound Talmage Road/US 101 Ramp right turn. The EIR traffic study indicates 2 6 that under existing conditions (without the Project) both intersections also have queues that exceed 2 7 available storage. 2 8 The EIR includes mitigation measures that would reduce this impact to a level considered less 2 9 than significant. The mitigation includes the construction of Talmage Road Interchange 3 0 improvements with the provision of two left-turn lanes on the westbound Talmage Road approach to 31 Airport Park Boulevard (mitigation measure 3.10.1). The City of Ukiah is pursuing the Talmage Road Costco Wholesale Project Environmental Impact Report City Council Resolution 8 December 4,2013 1 Interchange Improvements as a separate City-sponsored project. As of the preparation of the EIR, 2 funding sources for the improvements have been identified, but funding has not yet been secured. 3 Since funding has not been secured as of the preparation of the EIR, the impact is considered 4 significant and unavoidable. 5 Project Specific Impacts (Near-Term Plus ProjectZ The EIR concludes the Project would 6 increase traffic volumes on area roadways under Near-Term (Baseline) Plus Project Conditions. The 7 analysis in the EIR indicates the level of service (LOS) at two intersections would not meet the 8 acceptable LOS established by the general plan. General Plan Circulation and Transportation 9 implementation measure CT-16.4(e) establishes the acceptable LOS as LOS D or better. Under 10 Near-Term Plus Project Conditions, the intersection of Airport Park Boulevard/Talmage Road would 11 operate at LOS E, and the intersection of Talmage Road/US 101 Southbound Off-Ramp would 12 operate at LOS F. In addition, queuing would exceed available storage in two locations: 1) 13 westbound Talmage Road/Airport Park Boulevard left turn; and 2) southbound Talmage Road/US 14 101 Ramp right turn. The EIR traffic study indicates that under near-term conditions (without the 15 Project), both intersections also have queues that exceed available storage. 16 The EIR includes mitigation measures that would reduce this impact to a level considered less 17 than significant (mitigation measure 3.10.3 requires implementation of mitigation measure 3.10.1). 18 The mitigation includes the construction of Talmage Road Interchange improvements with the 19 provision of two left-turn lanes on the westbound Talmage Road approach to Airport Park Boulevard. 2 0 The City of Ukiah is pursuing the Talmage Road Interchange Improvements as a separate 21 City-sponsored project. As of the preparation of the EIR,funding sources for the improvements have 2 2 been identified, but funding has not yet been secured. Since funding has not been secured as of the 2 3 preparation of the EIR, the impact is considered significant and unavoidable. 2 4 Cumulative Impacts (Future 2030 Plus Project Level of ServiceZ The EIR concludes the 2 5 Project would increase traffic volumes on area roadways under Future(2030) Plus Project Conditions. 2 6 The analysis in the EIR indicates the level of service (LOS) at three intersections would not meet the 2 7 acceptable LOS established by the general plan. General Plan Circulation and Transportation 2 8 implementation measure CT-16.4(e) establishes the acceptable LOS as LOS D or better. Under 2 9 Future (2030) Plus Project Conditions, the intersection of Airport Park Boulevard/Talmage Road 30 would operate at LOS F; the intersection of Talmage Road/US 101 Southbound OfF-Ramp would 31 operate at LOS E; and the intersection of South State Street would operate at LOS E. Costco Wholesale Project Environmental Impact Report City Council Resolution 9 December 4,2013 1 The EIR includes mitigation measures that would reduce this impact to a level considered less 2 than significant (mitigation measure 3.10.4). The mitigation measures include: installation of a 3 left-turn lane on the eastbound approach of South State Street/Hasting Avenue and the construction 4 of Talmage Road Interchange improvements with the provision of two left-turn lanes on the 5 westbound Talmage Road approach to Airport Park Boulevard (mitigation measure 3.10.1). The City 6 of Ukiah is pursuing the Talmage Road Interchange Improvements as a separate City-sponsored 7 project. As of the preparation of the EIR,funding sources for the improvements have been identified, 8 but funding has not yet been secured. Since funding has not been secured as of the preparation of 9 the EIR, the impact is considered significant and unavoidable. 10 Cumulative Impacts(Future 2030 Queuin�: The EIR concludes the Project would contribute 11 to inadequate queuing storage under Future (2030) Plus Project Conditions. The analysis in the EIR 12 indicates queuing storage would exceed maximum queues at westbound Airport Park 13 Boulevard/Talmage Road left turn and Talmage Road/US 101 Southbound Off-Ramp right turn. The 14 EIR traffic study indicates that under Future conditions (without the Project), both intersections also 15 have queues that exceed available storage. 16 The EIR includes mitigation measures that would reduce this impact to a level considered less 17 than significant (implementation of mitigation measure 3.10.1). The mitigation includes the 18 construction of Talmage Road Interchange improvements with the provision of two left-turn lanes on 19 the westbound Talmage Road approach to Airport Park Boulevard. The City of Ukiah is pursuing the 2 0 Talmage Road Interchange Improvements as a separate City-sponsored project. As of the 21 preparation of the EIR, funding sources for the improvements have been identified, but funding has 22 not yet been secured. Since funding has not been secured as of the preparation of the EIR, the 23 impact is considered significant and unavoidable. 24 2 5 15. Air Quality. 2 6 Project Specific Impacts (Operational Emissions�: The EIR concluded that operation of the 2 7 Project would generate significant emissions of criteria air pollutants that could contribute to existing 2 8 nonattainment conditions for nitrous oxide (NOX), PM 10, and PM 2.5 and degrade air quality. The 2 9 EIR analysis indicates that vehicle trips are the primary source of these emissions. The EIR includes 30 mitigation measures that would reduce the level of this impact. The mitigation measures include: 31 incorporating building and site design features that achieve a building energy efficiency rating greater Costco Wholesale Project Environmental Impact Report City Council Resolution 1 Q December 4,2013 1 than the Title 24 requirement; incorporating sustainability features into the project, including the use 2 of locally extracted building materials where feasible, pre-manufactured building components to 3 reduce construction waste, pre-manufactured wall panels with insulation designed to conserve 4 energy by increasing R-value and solar reflectivity, reflective roof material that complies with 5 requirements for USEPA's Energy Star energy efficiency program, skylights as part of a daylight 6 harvesting system, tree planting to reduce summer heat gain in the parking lot, plant palette that 7 includes a substantial amount of drought tolerant species, and an irrigation system that minimizes 8 water use and ensures water goes directly to the intended planting area; implementation of 9 measures to reduce motor vehicle trips and operational emissions, including promoting the use of 10 alterative fueled vehicles and equipment and providing incentives for employees to use alternative 11 transportation, such as carpool/vanpool, transit, bicycling, or walking; and use of low VOC coatings. 12 The Project Proponent commits to these mitigation measures. 13 The EIR concludes that the implementation of these mitigation measures would not reduce the 14 impact to a less than significant level and the impact would be significant and unavoidable. 15 Cumulative Impact (Operational EmissionsZ The EIR concluded that construction and 16 operation of the Project would result in cumulatively considerable increases in criteria pollutant 17 emissions. The EIR identifies the same mitigation measures for cumulative emission impacts as for 18 operational emissions impacts (implementation of Air Quality mitigation measures 3.2.2a through 19 3.2.2c). The EIR concludes that implementation of the mitigation measures would reduce the 2 0 impacts, but would not reduce the impacts to a less than significant level; therefore, this impact 21 would be significant and unavoidable. 22 2 3 16. Global Climate Change. 2 4 Project Specific Impacts (Operational EmissionsZ The EIR concludes the Project could 2 5 generate greenhouse gas emissions that may have a significant impact on the environment. The EIR 2 6 includes mitigation measures that would reduce this impact(implementation of Air Quality mitigation 2 7 measures 3.2.2a through 3.2.2c). The mitigation measures include: incorporating building and site 2 8 design features that achieve a building energy efficiency rating greater than the Title 24 requirement; 2 9 incorporating sustainability features into the project, including the use of locally extracted building 30 materials where feasible, pre-manufactured building components to reduce construction waste, 31 pre-manufactured wall panels with insulation designed to conserve energy by increasing R-value and Costco Wholesale Project Environmental Impact Report City Council Resolution 1 1 December 4,2013 1 solar reflectivity, reflective roof material that complies with requirements for USEPA's Energy Star 2 energy efficiency program, skylights as part of a daylight harvesting system,tree planting to reduce 3 summer heat gain in the parking lot, plant palette that includes a substantial amount of drought 4 tolerant species, and an irrigation system that minimizes water use and ensures water goes directly 5 to the intended planting area; implementation of ineasures to reduce motor vehicle trips and 6 operational emissions, including promoting the use of alterative fueled vehicles and equipment and 7 providing incentives for employees to use alternative transportation,such as carpool/vanpool,transit, 8 bicycling,or walking; and use of low VOC coatings.These are the same mitigation measures included 9 for Air Quality operational emissions. The EIR concludes that the implementation of these mitigation 10 measures would not reduce the impact to a less than significant level;therefore,this impact would be 11 significant and unavoidable. 12 The Project Proponent commits to these mitigation measures. 13 14 FINDINGS REGARDING UNMITIGATED ADVERSE IMPACT 15 The EIR has identified the following seven significant and unavoidable that cannot be 16 successfully mitigated or avoided with implementation of the Project. 17 18 1. Transportation and Traffic Impact 3.10.1: Implementation of the Project would increase traffic 19 volumes on area roadways (Final EIR, p. ES-11). 2 0 2. Transportation and Traffic Impact 3.10.3: Implementation of the Project would increase trafFic 21 volumes on area roadways Near-Term conditions (Final EIR, p. ES-12). 22 3. Transportation and Traffic Impact 3.10.4: Implementation of Project would increase traffic 23 volumes on area roadways under Future (2030) conditions (Final EIR, p. ES-12). 2 4 4. Transportation and Traffic Impact 3.10.5: Under Future plus Project conditions,traffic associated 25 with the Project would contribute to inadequate queuing storage at Talmage Road/Airport Park 2 6 Boulevard and Talmage Road/US 101 Southbound OfF-ramp (Final EIR, p. ES-12). 2 7 The EIR identifies improvements to the intersection of the Highway 101 southbound 2 8 intersection with Talmage Road that would mitigate the impacts identified above. These 2 9 improvements are currently being undertaken by the City of Ukiah as a separate 30 City-sponsored ('�Talmage Interchange Improvement Project'�. The purpose of this Costco Wholesale Project Environmental Impact Report City Council Resolution 12 December 4,2013 1 Project is to remedy the existing and future queuing conditions described above and to 2 make traffic and circulation to serve future build-out of the Airport Industrial Park, as well 3 as the future circulation needs in the immediate area and to accommodate population 4 growth. Improvements within Caltrans right-of-way will require Caltrans approval of 5 design plans and an encroachment permit. The City has been in consultation with Caltrans 6 throughout the design phase of the Talmage Interchange Improvements and Caltrans 7 agrees that improvements to the interchange are needed. 8 9 Although the City has identified potential funding sources for these improvements, 10 including ... 11 As of the consideration of the EIR and proposed Project, funding for these improvements 12 has not been secured. Without funding for the improvements necessary to mitigate the 13 impacts identified in the EIR, the impacts remain significant and unavoidable. 14 15 5. Air Quality Impact 3.2.2: Operation of the Project would generate significant emissions of 16 criteria air pollutants that could contribute to existing nonattainment conditions and degrade 17 air quality (Final EIR, p. ES-3). 18 6. Air Quality Impact 3.2.5: Construction and operation of the Project would result in 19 cumulatively considerable increases in criteria pollutant emissions (Final EIR, p. ES-5). 2 0 7. Global Climate Change Impact 3.11.1: The Project could generate GHG emissions that may 21 have a significant impact on the environment or conflict with an applicable plan, policy or 22 regulation adopted to reduce GHG emissions (Final EIR, p. ES-12). 23 For the following reasons, the City Council finds that specific economic, legal, social, 2 4 technological or other considerations make infeasible the project alternatives identified in the EIR. 25 2 6 The Project Objectives. 2 7 The primary City objectives of the proposed Project, as explained in the DEIR, p. 2-5, are to: 2 8 locate regional retail development within the existing commercial areas; locate retail development 2 9 within existing commercial areas of the City; enhance the retail opportunities within the City of Ukiah; 3 0 fulfill the City's role as a regional retail center and reduce the number of vehicle trips to retail centers Costco Wholesale Project Environmental Impact Report City Council Resolution 13 December 4,2013 1 in Sonoma County and thereby reduce regional air pollution and greenhouse gas emissions; further 2 develop the Airport Industrial Park in accordance with the City's general plan and Ordinance 1098; 3 encourage development that generates enough revenue for the City to pay for the City services 4 received by the development; and encourage urban design that enhances the US 101 corridor. 5 The primary Project Proponents objectives,as explained in the DEIR, p. 2.5,are to: provide a 6 Costco facility on a site with good access in a central location within the trade area; provide a Costco 7 facility in a location that is convenient to employees to travel to work; increase the number of 8 employees and contribute to a jobs/housing balance; provide a Costco facility to better serve Costco 9 members within the greater Ukiah area; and enhance the area with an economically viable 10 development which is architecturally designed to be sensitive to the Ukiah community and compatible 11 with Costco's needs for a new warehouse. 12 13 B. Generally, Project Alternatives are Unavailable and Infeasible. The traffic, air 14 quality and greenhouse gas emissions impacts that cannot be mitigated results from the vehicle trips 15 associated with the Project. Consideration of an alternative location or a reduced Project size would 16 not reduce the level of traffic, air quality, or greenhouse gas emissions to a less than significant. Due 17 to the nature of the Project,which sells limited numbers of goods in bulk quantities,the Project relies 18 on vehicles for the delivery of goods and customer trips. In order to reduce the air quality and 19 greenhouse gas emissions impacts to a less than significant level, the number of vehicle trips would 2 0 need to be reduced to two-percent (2%) of the number of trips estimated for the Project (see FIER, 21 pp. ). This reduction in vehicle trips would make the Project financially infeasible for the Project 2 2 Proponent. 23 C. Infeasibility of Project Alternatives Discussed in EIR. The following social, 2 4 economic, legal, technological, and other considerations make the three alternatives identified in the 2 5 EIR infeasible. The three alternatives are: 1) no project alternative; 2) alternative location; and 3) 2 6 reduced project alternative. 27 2 8 1. No Project Alternative. Under the No Project Alternative,the Project would not 2 9 be undertaken and the site would not be developed. This alternative would reduce most of the 30 impacts associated with the Project; however, this alternative would not achieve any of the Project 31 objectives (DEIR, p. 2.5). Under this alternative, there are transportation and traffic impacts under Costco Wholesale Project Environmental Impact Report City Council Resolution 14 December 4,2013 1 the following conditions: under existing conditions, the maximum queue exceeds available storage 2 for the Talmage Road/US 101 Southbound OfF-Ramp right turn; under near-term (baseline) 3 conditions, the maximum queue exceeds available storage for the Talmage Road/Airport Park 4 Boulevard westbound left turn and the storage for the Talmage Road/US 101 Southbound Off-Ramp 5 right turn; and under Future (2030) conditions, the maximum queue exceeds available storage for 6 the Talmage Road/Airport Park Boulevard westbound lefit turn and the storage for the Talmage 7 Road/US 101 Southbound OfF-Ramp right turn. 8 The no project alternative is not feasible, because it would not achieve any of the project 9 objectives and does not eliminate existing trafFic congestion problems. 10 11 2. Alternative Location. This alternative would locate the Project on the west side of 12 Airport Park Boulevard across from the currently proposed location on three separate parcels totaling 13 14.69 acres. Since the location of this alternative is similar to the proposed Project location, Urban 14 Decay, Geology and Soils, Hydrology and Water Quality, Land Use, Noise, Public Services and Utilities, 15 Cultural Resources, and Biological Resources impacts would be similar to the Proposed Project. 16 This alternative site is located in Airport Compatibility Zone B1 of the Mendocino County 17 Airport Comprehensive Land Use P/an which is more restrictive than Zone C (the zone in which the 18 proposed Project is located). The Costco store is considered an "intensive retail" use, a use 19 considered��Not Normally Acceptable"in the B1 zone. Development in this zone would be subject to 2 0 more restrictive development conditions related to the requirements of the B1 zone. Although, the 21 Project may be allowed in this location if determined to be consistent with the commercial uses 2 2 allowed and the conditions for development in the B1 zone, it may exceed the allowed development 2 3 density. If the density exceeded the density allowed in the B1, the impact would be equal or greater 2 4 than the proposed Project (DEIR, p. 5-9 and 5-10, Hazards and Hazardous Materials). 2 5 If the Project at this alternative location was found to be inconsistent with the Mendocino 2 6 CountyAirport Comprehensive Land Use Plan as discussed above, the Project would be inconsistent 2 7 with applicable plans and regulations, resulting in a potentially significant Land Use and Planning 2 8 impact which does not exist at the proposed location for the Project. 2 9 The construction and operational activities under this alternative would be similar to the 3 0 proposed Project since it is served by and would receive access from the same street network. 31 Therefore, this alternative would generate a similar number of vehicle trips as the proposed Project. Costco Wholesale Project Environmental Impact Report City Council Resolution 15 December 4,2013 1 This similar number of vehicle trips would result in similar traffic, air quality, and greenhouse gas 2 emissions impacts as the proposed Project. The traffic, air quality and greenhouse gas emissions 3 impacts would remain significant and unavoidable under this alternative (DEIR, pp. 5-8 to 5-11 and 4 FEIR, p. 4-14). 5 6 3. Reduced Project Size Alternative. This Reduced Project Size Alternative (No Fuel 7 Station)would remove the fueling station from the Project which would eliminate 492 p.m. peak hour 8 vehicle trips. The construction related impacts of this alternative would be similar to the proposed 9 Project. The elimination of 492 vehicle trips would not reduce the F�cisting plus Project, Near-Term 10 plus Project, or Future (2030) traffic impacts to a less than significant level and the impact would 11 remain significant and unavoidable under this alternative (DEIR, pp. 5-6 to 5-8, and 5-11, FEIR, p. 12 4-14). 13 The removal of the fueling station would reduce emissions from mobile and area sources by 14 eliminating 492 p.m. peak house vehicle trips and the need for fueling trucks. This reduction in 15 vehicle trips would reduce the area and mobile source emissions associated with the Project; 16 however,the impact would not be reduced to a less than significant level (FEIR, p. 3-45, response to 17 comment #3). The air quality impact and global climate change impacts, although reduced, would 18 remain significant and unavoidable under this alternative (DEIR, pp. 5-6 to 5-8, and 5-11, FEIR, p. 19 4-14). 2 0 The City Council finds that the proposed project represents the environmentally superior 21 alternative. 22 2 3 STATEMENT OF OVERRIDING CONSIDERATIONS 24 25 Weighing the benefits of the proposal against the environmental risks. Under 14 2 6 California Code of Regulations ("CCR") Section 15093, CEQA requires the City Council to balance, 2 7 as applicable,the economic, legal, social,technological, or other benefits, including region-wide or 2 8 statewide environmental benefits,of the Project against its unavoidable environmental risks,when 2 9 determining whether to approve the project. For the reasons as further stated below, the City 30 Council finds that the economic, social, technological or other benefits of the project outweigh the 31 unavoidable environmental risk arising upon construction and operation of the Project. Costco Wholesale Project Environmental Impact Report City Council Resolution 16 December 4,2013 1 For the following reasons, the City Council finds that the economic, social, technological or other 2 benefits of the Project outweigh the significant and unavoidable air quality, global climate change, 3 and traffic impacts identified in the Project EIR. 4 5 The Project Would Further Develop the Airport Industrial Park Planned 6 Development. The Airport Industrial Park was approved in 1981 with most of the land 7 area within the AIP designated for industrial uses, with office/commercial and highway 8 oriented commercial uses allowed between Talmage Road and Commerce Drive (Use 9 Permit 81-59). In 1991, the AIP was amended to expand the locations where commercial 10 uses were allowed to include part of the area south Commerce Drive between US 101 and 11 Airport Park Boulevard (Use Permit 91-4). In 1992 Ordinance 929 was approved in order to 12 allow general commercial uses in addition to Highway Oriented Commercial uses in the 13 area bounded by Talmage Road, Commerce Drive, US101, and Airport Park Boulevard 14 (Ordinance 929). 15 In 1996, Ordinance 964 was adopted to make the following changes to the land use 16 designations: Industrial/Commercial to Retail Commercial; Office/Commercial to 17 Professional Office; and Highway Oriented Commercial/General Commercial to Highway 18 Oriented Commercial. This amendment increased the amount of land that allowed 19 commercial uses and correspondingly decreased the amount of land designated for 2 0 industrial uses. In 1996, Ordinances 979 and 991 further amended the AIP to change the 21 designation of approximately 16 acres of land from Industrial to Industrial/Auto 22 Commercial. In 1999, Ordinance 1024 amended the AIP PD to change the designation of 23 the land bounded by Commerce Drive, Airport Road, Airport Park Boulevard and the 2 4 railroad tracks from Industrial to Industrial/Mixed Use. The purpose of the amendment 2 5 was to pro�ide flexibility in the types ofallowed and permifted land uses that can occur in 2 6 the designated area and to allow compatible uses that can co-exist, support one another, 2 7 and contribute to the goal of creating a self-sustaining employment and commercial center 2 8 within theAlP(Ordinance 1024). In 2000, Ordinance 1030 expanded the commercial uses 2 9 allowed in the Professional Office designation to include hotels and sit-down restaurants. 30 In 2004, Ordinance 1051 changed the land designated Industrial/Mixed Use to Light 31 Industrial/Mixed Use. The purpose of this land use designation was to provide for a Costco Wholesale Project Environmental Impact Report City Council Resolution 1 7 December 4,2013 1 compatib/e mix of/ight manufacturing activities, commercia//and uses, professional 2 o�ces, and/imited/ow-density residentia/uses(Ordinance 1051). 3 The proposed Project would amend the AIP to change the land use designation of 4 15.33 acres from Industrial/Auto Commercial and Light Manufacturing/Mixed Use to Retail 5 Commercial. This is consistent with the amendments to the AIP that have occurred since 6 the original approval of the AIP. These amendments are a reflection of an increase in 7 demand for land that could be developed with commercial uses and a corresponding 8 decrease in the demand for industrial properties. Approval of the amendment would allow 9 development of land that has remained undeveloped for more than 30 years. The shift 10 from industrial development to commercial development also reflects the lack of demand 11 for industrial uses and Ukiah's place as a regional as well as local destination for 12 commercial goods and services. The Project could also assist with the development of the 13 remaining vacant land within the AIP since there is the potential for other businesses to 14 locate near Costco. Costco provides an opportunity for greater market visibility of the AIP 15 and may also act as a draw for other retailers (DEIR, p. 3.3-17) 16 17 The Project would Recapture Retail Sales Leakage. The City of Ukiah and Airport 18 Park Planned Development provide local and regional retail serving commercial areas. 19 The Project would expand the retail offerings in the AIP PD and City of Ukiah, thereby 2 0 recapturing sales lost through leakage. Leakage represents the demands for goods by 21 market area residents that are not met within the market area. Therefore, these market 22 area residents shop in retail centers outside of the market area (such as Santa Rosa and 23 Rohnert Park). 2 4 In 2011 the Project's market area, which includes the City of Ukiah, experienced 25 $188.1 million in retail sales leakage annually in the categories of motor vehicle and parts 2 6 dealers, home furnishings and appliances, building materials and garden equipment, 2 7 clothing and clothing accessories, general merchandise stores, food services and drinking 2 8 places, and other retail (DEIR, p.3.3-14 and DEIR, Appendix F, Exhibit 16). 2 9 Given the broad range of products sold at Costco, all of the leakage categories are 3 0 relevant to the Project. Recaptured sales leakage, not including sales recaptured from the 31 Santa Rosa and Rohnert Park Costco stores, is estimated to be $20.5 million (DEIR, p. Costco Wholesale Project Environmental Impact Report City Council Resolution 1 g December 4,2013 1 3.3-16, table 3.3-2 and pp. 3.3-14 to 3.3-17). In addition, the Project would recapture 2 Costco sales made by market area residents at the Santa Rosa and Rohnert Park Costco 3 stores. This recaptured leakage is estimated to be $20 million. Total recaptured leakage 4 is estimated to be $40.5 million. 5 The remaining retail sales leakage for the market area is estimated to be $363.8 6 million in the categories of motor vehicle and parts dealers, building materials and garden 7 equipment, clothing and clothing accessories, general merchandise stores, and food 8 services and drinking places. Therefore, the demands of market area residents for 9 products within these categories would not be completely met with the Project which 10 provides opportunities for new retail development within the market area and for existing 11 retailers to position their businesses to fill the unmet demand for products in these 12 categories. 13 The Project would enhance the retail opportunities within the City of Ukiah. 14 The Ukiah Costco store would include the sales of over 4,000 products in the categories of 15 motor vehicle and parts dealers, home furnishings and appliances, building materials, food 16 and beverage, clothing and accessories, general merchandise, food services and drinking 17 places, and other retail (DEIR, p. 3.3-13, table 3.3-1). As stated above, the market area 18 currently experiences leakage in the categories of motor vehicle and parts sales, home 19 furnishings and appliances, building materials and garden equipment, clothing and 2 0 clothing accessories, general merchandise stores, food services and drinking places, and 21 other retail. The Project would increase the retail offerings in categories that experience 22 leakage which would expand the retail opportunities within Ukiah and allow Ukiah and 23 market area residents to shop in Ukiah. 24 25 The Project would locate local and regional serving retail within an existinq 2 6 commercial area in the City of Ukiah. Costco is a business that draws from a large 2 7 market area as demonstrated by the market area identified for the Project(DEIR, pp. 3.3-2 2 8 and 3.3-5, and figure 3.3-2). This is further exemplified by the number of Costco members 2 9 that have Ukiah addresses or that are located within the market area. In 2012, there were 3 0 18,288 Costco members with Ukiah addresses. These members made 201,809 trips to the 31 Santa Rosa and Rohnert Park Costco stores in 2012. In 2011, there were 18,335 Costco Costco Wholesale Project Environmental Impact Report City Council Resolution 19 December 4,2013 1 members within the Project market area. 2 The Project would provide local and regional serving retail within the AIP which is 3 an area that has been developed with local and regional serving businesses. The AIP is an 4 area that has been designated by the City as an area appropriate for regional commercial 5 development based, in part, on its location adjacent to US 101, access to US 101, and 6 ability to attract commercial development. The demand for commercial development 7 within the AIP has increased over time as exemplified by the amendments to the AIP that 8 have expanded the allowed and permitted commercial uses and increased the amount of 9 land area that allows commercial development. 10 11 The Project would provide an opportunity for residents of the City of Ukiah and 12 greater Ukiah Valley to shop locall� In 2012, there were 18,288 Costco members 13 with Ukiah addresses. These members made 201,809 trips to the Santa Rosa and Rohnert 14 Park Costco stores in 2012. In 2011,there were 18,335 Costco members within the Project 15 market area. In 2011, market area members spent$20.6 million at the Santa Rosa Costco, 16 including $3.3 million in gasoline sales, and $4.9 million at the Rohnert Park Costco, 17 including gasoline sales. It is reasonable to assume that with the construction of a Ukiah 18 Costco store, a portion of these trips would be recaptured and redirected to the Ukiah 19 Costco store (DEIR, p. 3.3-14). 20 21 The Projects would help to fulfill the Citv's role as a regional retail center and 22 reduce the number of vehicle trips to retail centers in Sonoma Countv and 2 3 therebv reduce regional air pollution and greenhouse gas emissions. As stated 2 4 above, in 2011 and 2012 there were more than 18,000 market area residents with Costco 2 5 memberships. In 2012, Costco members with Ukiah addressed made 201,809 trips to the 2 6 Santa Rosa and Rohnert Park Costco stores. Construction of a Ukiah Costco store allow 2 7 some of these trips to be redirected to the Ukiah Costco store. This redirection of trips to 2 8 the Ukiah Costco store has the potential to reduce vehicle miles traveled in the region and 2 9 to correspondingly reduce vehicle emissions. This reduction has the potential to reduce 30 regional air pollution and greenhouse gas emissions. 31 Costco Wholesale Project Environmental Impact Report City Council Resolution 2 Q December 4,2013 1 The Project would create employment opportunities within the Citv. The Project 2 would create 175 to 200 new full and part-time jobs. Fifry-percent of the jobs would be 3 full-time and 50% would be part-time. In January 2012, the unemployment rate in Ukiah 4 was 10.2%. Ukiah has a workforce of 7,160 people with 6,430 people employed, leaving 5 730 people available to fill the 175 to 200 jobs that would be created by the Project. 6 The Project would also create construction jobs. Based on the unemployment rate in Ukiah 7 and the number of people available for employment, some of the construction jobs would 8 be filled by Ukiah residents or people from Ukiah Valley. Out of the area construction jobs 9 would benefit the City of Ukiah by increasing lodging, dining, and shopping in the area 10 while these employees work on construction of the Project. 11 12 The Project would create above minimum wage jobs with benefits within the 13 Citv. Information provided by the applicant provides a sampling of wages: Service 14 Assistant $11.50 - $20.30 per hour; Service Clerk $12.00 - $22.00 per hour; and Meat 15 Cutters $12.00 - $23.50 per hour. Costco also provides benefits, including medical, dental, 16 vision, pharmacy, mental health, life insurance, disability, long-term care, employee 17 assistance program, flexible spending accounts, employee stock purchase program, 11 18 paid holidays, college student retention program, and 401(k). Part-time employees 19 working more than 20 hours per week receive core medical, dental, and vacation benefits 2 0 after 6 months and are guaranteed 24 hours per week. 21 22 The Project would generate tax revenue for the Citv allowing the Citv to fund 23 needed services. The Project would generate additional revenue for the City's general 2 4 fund from sales tax, measure S sales tax, properry tax,franchise tax, other taxes, licenses, 25 permits, and fees. The gross general fund revenue generated by the Project is estimated 26 to range from $471,194 to $709,149. Measure S sales tax is estimated to range from 27 $198,051 to $308,856. The estimated cost of providing the City services for the Project is 2 8 $57,477. The net general fund revenue is estimated to range from $413,747 to $651,702, 2 9 excluding Measure S sales tax, and $611,798 to $960,557, including Measure S sales tax. 30 (Ukiah Costco Fiscal Impact Analysis dated July 2013, p.3, exhibit 1). Costco Wholesale Project Environmental Impact Report City Council Resolution 2 1 December 4,2013 1 The Project would also generate revenue for the County of Mendocino and a variety of 2 special districts due to an increase in property tax revenue. The revenue is estimated to be: 3 Mendocino County $65,001; Ukiah Unified School District $92,886; Educational 4 Augmentation Funds $42,510; Mendocino Community College $17,420; and Mendocino 5 County Office of Education $11,180. In addition, $15,146 would be shared by the library, 6 Russian River Cemetery District, County water agencies, and others. (Ukiah Costco Fiscal 7 Impact Analysis dated July 2013, pp. 4-5). 8 9 The Project would contribute funds to needed infrastructure improvements. In 10 1999, the City Council adopted the Redwood Business Park Capital Improvement Program 11 and associated fee schedule. The Project is required to pay the capital improvement fee 12 which is based on the size of the development. Based on a development area of 15.33 13 acres,the capital improvement fee is estimated to be$152,640 based on the retail and gas 14 station uses of the site and their respective acreages (memo from Ben Kageyama, Public 15 Works dated November 14, 2013). 16 1� The Project would improve pedestrian circulation and expand the use of public 18 transit. The Project would provide the following pedestrian facilities: sidewalks along the 19 Airport Park Boulevard frontage; sidewalks along the northern project frontage; a 2 0 pedestrian pathway through the parking lot that connects the fueling station to the front of 21 the building; a sidewalk from Airport Park Boulevard along the south elevation of the store 22 to the store entry; and a concrete pad for the installation of a new bus shelter adjacent to 23 the new sidewalk located along the northern project frontage (plans date stamped 2 4 November 12, 2013). 25 The Project would provide a pad for a bus shelter as shown on the Project plans. 2 6 Mendocino Transit Authority would provide and install a bus shelter on the create pad and 2 7 would extend the bus route to serve the Project site (FEIR, Appendix A, letter from MTA 2 8 dated May 21, 2013). 29 Costco Wholesale Project Environmental Impact Report City Council Resolution 2 2 December 4,2013 1 The Project includes energv conserving measures. The Project would include 2 energy conservation features including: building envelopes insulated to meet or 3 exceed current energy code requirements; commissioning of inechanical systems; 4 installation of energy star rated skylights; reduction in the interior warehouse 5 lighting by from 100% to 66% to 33% to 0%, based on daylight contribution through 6 the skylights; interior and exterior photo sensors to measure daylight and reduce the 7 amount of lighting based accordingly; lighting controlled by the overall project 8 energy management system; parking lot and exterior lights controlled by a photo 9 sensor and time clock; use of high-efficiency light source and ballasts (pulse start 10 Ceramic Metal Halide HID) and bi-level switching for fluorescent fixtures; Cool Roof 11 designs designed to reduce heat transfer through the roof; HVAC comfort systems 12 controlled by a computerized building management system to maximize efficiency; 13 high efficiency, direct ducted HVAC units; use of energy efficient Transformers; use 14 of variable speed motors on make-up air units and booster pumps; direct vent gas 15 water heaters that are 94% efficient or greater; use of reclamation tanks to capture 16 heat released by refrigeration equipment to heat domestic water in lieu of rejecting 17 heat to the outside; use of pre-engineered metal building for efficiency and 18 sustainable materials when compared to a full height masonry counterparts (results 19 in the consumption of fewer building materials in construction, burning of fewer 20 fossil fuels in transportation since steel contains over 80% recycled content and is 21 100% recyclable) (Project Description dated November 13, 2013). 22 2 3 The Project is subject to the requirements of the California Green Building Code. Mitigation 2 4 measure 3.2.2a requires the Project to incorporate sustainability features into the building 25 and site design to achieve a building energy efficiency rating that is greater than the Title 2 6 24 requirement in order to reduce energy consumption and associated GHG emissions 2 7 (FEIR, p. ES-3 and ES-4, FEIR, pp. 5-3 sand 5-4). 28 2 9 3. Based on the foregoing findings, the benefits outweigh the unavoidable adverse air quality and 3 0 global climate change operational emissions impacts,and traffic and transportation level of serve and 31 queuing impacts. Costco Wholesale Project Environmental Impact Report City Council Resolution 2 3 December 4,2013 1 2 INTRODUCED this 4t" day of December 2013 by the following roll call vote: 3 4 AYES: 5 NOES: 6 ABSENT: None 7 ABSTAIN: None 8 9 10 11 12 Doug Crane, Mayor 13 14 15 16 ATTEST: 17 18 19 2 0 Kristine Lawler, City Clerk Costco Wholesale Project Environmental Impact Report City Council Resolution 2 4 December 4,2013 . �l�ta�hrrlent �i-` 1 1 $.2�B � 0_CK � fdASSOCIATES A R C H I T E C T U R E & P L A N N I N G Ukiah Costco New Warehouse and Fuel Station Ukiah , California Owner/ Costco Wholesale Applicant 9 Corporate Park Suite 230 Irvine , California 92606 Attn : MichaelOkuma (714) 978-5023 Contact David Babcock & Associates Person 3581 Mt. Diablo Blvd . , Suite 235 Lafayette, CA 94549 Attn : David Babcock (925) 283-5070 Site Information ' Project Address : Airport Park Blvd . , Ukiah , CA Assessor Parcel Numbers : Portions of 180- 110-08 , 180- 110-09 , 180- 110- 10 , 180-080-57 , 180-080-58 , 180-080-59 , 180-080-62 , 180-080-63 , 180-080-64 , 180-080-65 , 180-080-66 and 180-080-67 Site Area : ± 15 . 30 acres (Costco) General Plan : Master Plan Area (MPA) Current Zoning : PD - "Airport Industrial Park" Existing Airport Industrial Park Land Use Designation : 01 .30. 13 3581 Mt. Diablo Blvd . , Suite 235 , Lafayette, CA 94549 (925) 283-5070 Fax (925) 283-4823 " Light Manufacturing / Mixed- Use" " Industrial / Automotive Commercial " Proposed Airport Industrial Park Land Use Designation : Retail Commercial Proposed General Plan : Master Plan Area (no change) Site Description The site is located within the City of Ukiah along Highway 101 . Access to the site is _ from Talmage Road to Airport Park Blvd which runs along the western property line . The warehouse can also be accessed from South State Street to Hastings to Commerce to Airport Park Boulevard . The existing Ken Fowler Auto Center is immediately adjacent at the north end of the property. The Mendocino Brewing Company is located south of the property. The site is currently vacant and undeveloped . Project Proposal The proposed project consists of the following components : 1 . The construction of a new approximately 148 , 000 square foot Costco Wholesale warehouse with 16 of the 20 pumps fuel facility to be constructed initially and remaining as needed on approximately 15 . 30 acres . Add that the approval of 20 pumps is being requested . Proposing to construct 16 pumps now and possibly add 4 additional in the future . 2 . Parcel consolidation and reconfiguration to create the Costco Project parcel and non-Costco Project parcels . 3 . A Site Development Permit for the proposed building and site layout. 4 . Rezoning to amend the Airport Industrial Park land Use Map to change the Costco Project parcel from " Industrial / Automotive Commercial " and " Light Manufacturing / Mixed - Use" to " Retail Commercial" . The project would be constructed in one phase and would include a new Costco warehouse , Costco fuel station , and new site amenities including landscaping and parking lot. We anticipate the Ukiah Costco warehouse and gas station will employ approximately 175-to 200 people . Site The project site is currently unimproved and vacant. The Costco project will provide site Page 2 of 9 and perimeter landscaping that exceeds current City of Ukiah requirements . Drought tolerant shrubs and grasses and a variety of shade trees will be used throughout the parking field and along the street that are appropriate to the region . The site is bordered on the south and west sides by existing drainage areas that drain under US 101 via existing culverts . These culverts constrict the drainage flow of the drainage area , making them act as a regional storm water detention basin . A detailed hydrology and hydraulic analysis of this area indicates the proposed development will have less than significant impacts on the out flow of the existing culverts or on the stage elevation of the drainage area . Additionally this site is required to implement storm water low impact development methods as described in the City's adopted MS4 Permit. These methods include but are not limited to extended detention , retention/infiltration , bio- filtration , and proprietary filtration methods . Implementing the requirements of this permit as mentioned above will provide an ecologically responsive method of on -site storm water treatment. Pedestrian pathways from the new warehouse to the public right-of-way will insure connectivity throughout the site and easy access from adjacent streets and neighboring properties . The project provides generously sized parking stalls that are larger than the minimum requirements to provide members with easier accessibility to vehicles . Parking and site lighting will incorporate the use of cutoff lenses to keep light from overflowing beyond the project boundaries and will use " night-sky" friendly fixtures . Costco Warehouse The total proposed retail area for the Costco store would be approximately 148 , 000 square feet. Costco's goal of simple elegance and efficiency creates a design that has set the standard for large retail facades with variety of massing and appropriate materials . The building provides a design that is harmonious in texture and mass throughout and reflects a contemporary style . By combining concrete masonry block and architectural metal panels , Costco is able to minimize the visual impact of a large retail warehouse . The use of design techniques such as the orientation of the metal panel , landscaping , the incorporation of varying parapet cap depths and heights Costco can successfully break the long elevations both horizontally and vertically. The technique of breaking a long elevation into smaller elements is used to create a more pedestrian-friendly scale . The proposed colors are warm natural earth tones which will relate to the neighborhood and some of the more recent buildings in the area . The building entrance , located on the "skew" of the floor plan , provides Costco and the city with the opportunity to make a unique " Ukiah " statement. This is where the culmination of time tested details are blended together to give this location a look and feel that is specific to the context of the surrounding area and community . The building orientation will position the most dynamic design features facing the Highway 101 corridor. When approaching from the south , this location will present itself as the welcoming feature to ' the city. A design that is sustainable , environmentally conscious , without the need of over indulged ornamentation is a statement that fits the feel of Ukiah . Building signage would be the Costco red and blue corporate colors . The signage is Page 3 of 9 scaled appropriately to the mass of the building elevations so as to not overwhelm but to reinforce the brand that Costco has established . The warehouse wall signage will consist of externally illuminated reverse pan channel letters and the gas station signage will also be externally illuminated . Lighting fixtures would be located on the building approximately every 40 feet around the exterior of the building for proper safety and security. Exterior lighting consists of inetal halide light fixtures mounted on 36'-7" poles . Costco has found that the combination of light fixture and pole height reduce energy consumption while providing proper illumination of the site . The parking lot lighting will consist of two 875 watt metal-halide bulbs with the fixtures being of a "shoe-box" style . The warehouse has one customer entrance to the main Costco store located at the southeast corner. The Ukiah Costco will include a bakery, pharmacy, optical center, hearing aid testing center, food court, and a photo center along with the sales of over 4 , 000 retail products . The Tire Center is an approximately 5 ,478 square-foot attached building with member access through the inside of the main Costco building and includes retail tire sales and a tire installation facility. The installation facility has four bays that face toward the south to allow Costco employees to drive the cars into the installation facility. The truck loading dock would be located at the north edge of the building within the building area . It would face east and include four individual side-by-side loading bays . The bay doors would be equipped with sealed gaskets to limit noise impacts . A low screen wall would be constructed along the edge of the dock, facing north , to help mitigate visual impacts . In addition , because the docks all face in one direction , any potential noise would be channeled to �the east toward the highway . The warehouse also has a delivery door located on the north side of the building to receive bread deliveries and merchandise from smaller vendors . A transformer and two trash compactors would also be located along the north edge of the building . Dense landscape material and mounding will provide the necessary screening to this area (see Landscape Plan) . An outdoor staff " break" area is proposed adjacent to the truck loading dock along the north edge of the warehouse that can be monitored from the street for safety. Gas Station The gas station will include a 2 , 816 square foot canopy and will be located in the southeast corner of the site adjacent to Highway 101 . A 75 square foot controller enclosure will be located on the north side of the fuel station to house the control equipment for the gas station . It will be built with steel walls and finished with paint to match the warehouse building colors . There will be four covered fueling bays , each with two gas pumps which could fuel two cars each . The gas station will thus have fueling capacity for 16 cars at a time . The fueling station will also have eight stacking lanes which will allow 40 cars to wait for pumps at any given time in addition to the 16 at the Page 4 of 9 fueling pumps . The pumps are fully automated and self-serving for Costco members only, with a Costco attendant present to oversee operations and assist members with problems . Three underground fuel tanks will also be installed at the northern edge of the gas station . Landscaping will run along the north , screening both controller and air separator tank . Lights will be semi-recessed into the canopy and provide both lighting during operating hours and a lower level of security lighting after hours . Costco Operations Costco Wholesale is a membership-only retail/wholesale business , selling high quality - national brands and private label merchandise for commercial and personal use . The warehouse hours are anticipated to be : Monday through Friday from 10 : 00 am to 8 : 30 pm , Saturday from 9 : 30 am to 6 : 00 pm , and Sunday from 10 : 00 am to 6 : 00 pm . The fuel facility operates daily from 6am to 10pm . Costco anticipates an average of about 10 trucks delivering goods on a typical weekday. The trucks range in size from 26 feet long for single-axle trailers to 70 feet long for double-axle trailers . Receiving time is from 3 : 00 a . m . to 2 : 30 p . m . , averaging 2 to 3 trucks per hour, with most of the deliveries completed before the 10 : 00 a . m . opening time . Deliveries to the warehouse are made primarily in Costco trucks from its freight consolidation facility in Tracy, California . We estimate that fuel will be delivered to the gasoline facility in two trucks per day. The fuel trucks will come from Highway 101 to Talmage Road and travel south to the project along Airport Park Blvd . The largest fuel trucks are approximately 65 feet long . While delivering the fuel , the truck will be parked over the underground tanks located on the north side of the gas facility. The truck will not block access to any of the sixteen fueling positions . The gas facility is located at the most remote area of the Costco parcel with accessibility which is specifically designed to avoid traffic and queuing conflicts with the warehouse . In order to open and operate the gas facility, Costco will have to meet requirements of local , state and federal regulators and agencies , including the City Fire Department, the County Department of Environmental Health -- Hazardous Materials Division ( Hazardous Materials/Underground Tank Permit) , the Air Quality Management District, the State Water Resources Control Board , the California Environmental Protection Agency, and the United States Environmental Protection Agency. One of these requirements , for example , may be a Spill Prevention Countermeasure and Control Plan to prevent runoff of petroleum product spills into nearby waterways and/or water detention facility. The tire center typically will receive shipments of tires one to two times per week in single- or double-trailer trucks of up to 70 feet in length , and the same delivery truck will pick up old tires for recycling . Their typical routing will be from Highway 101 via the Page 5 of 9 same routes as the warehouse and gas delivery trucks . Deliveries to and pickups from the tire center will be scheduled for pre-opening hours , typically about 6 : 00 a . m . In an average week , a total of approximately 80 to 100 trucks will call upon the Costco warehouse , tire center and gas facility combined . Objectives of the Proposed Project : The proposed project has been designed to meet a series of objectives : • Provide a Costco facility on a site with good access in a central location within the trade area . - • Provide a Costco facility in a location that is convenient for its members and employees to travel to work . • Increase the number of employees and contribute to the local job/housing balance . • Provide a Costco facility with a state-of-the-art warehouse to better serve Costco' s members in the greater Ukiah area . • Enhance the area with an economically viable development which is architecturally designed to be sensitive to the Ukiah community and compatible with Costco's needs for a new warehouse . • Contribute to the City' s tax base . • Design a project consistent with the City's General Plan and Zoning Ordinance . • Expand the space available for integrated retail sales of goods and services in the City of Ukiah . • Design a site plan that minimizes circulation conflicts between automobiles and pedestrians . • Plan and design for public transit access . Energy - Efficient Project Components In an effort to keep operating costs low, Costco will incorporate many energy saving measures when constructing a new facility. Below are some of the significant practices that Costco currently incorporates into new buildings that help conserve energy and other natural resources : Page 6 of 9 • Parking lot light standards are designed in order to provide even light distribution , and they utilize 20 % less energy compared to a greater number of fixtures at lower heights . The use of inetal halide lamps provide a color-corrected white light and a higher level of perceived brightness with less energy than other lamps such as high pressure sodium . • New renewable building materials are typically extracted and manufactured within the region . • The use of pre-manufactured building components , including structural framing and metal panels , help to minimize waste during construction . • Pre-manufactured metal wall panels with insulation carry a higher R-Value and greater solar reflectivity to help conserve energy. Building heat absorption is further reduced by a decrease in the thermal mass of the metal wall when compared to a typical masonry block wall . • Costco uses a reflective roof material to produce lower heat absorption and thereby lowering energy requirements during the hot summer months . This roofing material meets the requirements for the EPA's Energy Star energy efficiency program . • The warehouse includes over 200 skylights placed strategically throughout the metal roof. Photo sensors are placed at various locations on the roof as well as inside a number of skylights to accurately measure the amount of natural light entering the building . Interior warehouse lighting is reduced from 100% to 66 % to 33 % to 0 % , based on daylight contribution through the skylights . Daylight is measured by exterior and interior photo sensors . This program allows lights to automatically shut off when they are not needed . Lighting is controlled by the overall project energy management system which utilizes high-efficiency lighting and ballasts (pulse start Ceramic Metal Halide HID) and bi- level switching for fluorescent fixtures . • Costco has utilized alternative sources of energy that are cost effective within the market for their warehouses . Costco is evaluating the use of solar energy for this warehouse and has not determined whether it will install solar panels as part of the initial building construction . Costco will design the roofing structure to accommodate the additional structural load of the solar panels to allow for the flexibility for possible future installation . • Tree plantings within the parking field will achieve a 50% shading of the pavement area within 15-years . . The proposed tree shading will serve to reduce summer heat gain within the parking field . • A substantial amount of the proposed plant material for the new site is native drought tolerant and will use less water than other common species . • The irrigation system includes the use of deep root watering bubblers for parking lot trees to minimize usage and ensure that water goes directly to the intended planting areas . Page 7 of 9 r V • Providing pedestrian connections to public transit and alternative parking scenarios , such as preferred parking for carpools . • Encourage employee carpooling , and bicycle commuting through employee incentives . • Storm water management plans designed to maintain quality control and storm water discharge rates . • Utilize light color roofing materials to reduce heat island effect . • Use of native species vegetation and drip irrigation systems greatly reduces potable water consumption . • Achievement of a 40 % decrease and water savings over U . S . standards by using high efficient restroom fixtures . • Building envelopes are all insulated to meet or exceed current energy code requirements . • Commissioning of inechanical systems . • HVAC comfort systems are controlled by a computerized building management system to maximize efficiency . • HVAC units are high efficiency direct ducted units . • HVAC units have phased out the use of HCFC ' s completely . Long before the Montreal Protocol timeline . • Parking lot and exterior lights are controlled by a photo sensor and time clock . • Lighting is controlled by the overall project energy management system . • Utilize high -efficiency light source and ballasts ( pulse start Ceramic Metal Halide HID ) and bi - level switching for fluorescent fixtures . • Energy efficient Transformers . Square D Type EE transformers . • Use of variable speed motors on make - up air units and booster pumps . • Gas water heaters are direct vent and 94 % efficient or greater . Page 8 of 9 f • Utilize reclaim tanks to capture heat released by refrigeration equipment to heat domestic water in lieu of ejecting heat to the outside . • Main Building structure is a pre -engineered system that uses 100 % recycled steel materials and is designed to minimize the amount of material utilized . • Roof material is 100 % recycled standing seam metal panel , designed to maximum efficiency for spanning the structure . • Exterior skin follows the same principle , Metal is 100 % recycled . • When masonry and concrete is utilized , the materials purchased are local to the project minimizing the transportation and impact to local road networks . • Construction waste is recycled whenever possible . • Floor sealant is No -VOC and represents over 80 % of the floor area . • Lighting systems are designed with employee controllability in mind . Lighting is controlled by timers but over- ride switches are provided for employee use . • CO2 monitoring throughout the warehouse • Extensive recycling/reuse program implemented for warehouse and office space including tires , cardboard , grease , plastics and electronic waste . • Avoid the use of plastic shopping bags • Require suppliers to reduce packaging and consider alternative packaging solutions . • Strategic location of distribution facilities to minimize miles traveled for delivery . • Only full trucks are ever delivered • All Costco trucks are equipped with an engine idle shut off timer. End of Project Description Page 9 of 9 � f t 1 � � � ; ,� �� Rttachm�n „ � ,�L ��F , � � _�, � � ��a ' p , � '` �- �� c ,� + � , n ry �,� ;t � � ' f � r � z �<�' �rr ,r ,�it��rE y ,.., . t �r9� >C� ?t f� nttu'` �� I �} � , � 2r p� �,��/�< << Y { ��"(C ��}�� 3�y*E � F OR' fi��i L.A.S �4 DAVIQ BAB,COCK + ASSOCIATES March 14, 2013 Ms:. Kim Jordan Senior Planner City of Ukiah 300 Seminary Avenue Ukiah , GA 954$2-5400 Re; Summary of Projeat Benef#s New Costco Warehouse and Gas Facility Ukiah; CA Dean Ms. Jordan, Attache.d for :your review is a summa .ry of the bene#its of the proposed new Cgstco 1Nar.eho.use and Gas Facility located :at Airport Park Boulevar.d in Ukiah , CA. We believe fhese benefits cor�espond: directly to some of the impac#s described in the Draft EIR and outweigh the impacts that might arise from the �roject. Please let tne know if you have any questions or require additional information regarding the Costco project. Sincerely, c���""` � � � . ` David E. Babcoek AIA; ASLA � �������� MAR 18 2013 ` c�' o� ur�atr� 'WVNfNG p��: 3581 MOUNT DIABLO BLVR., SUITE 235 LAFAYETfE; CA 94549 T: 925.283.5070 F: 925,283.4823 Descriptio,n :,of Proiect Benefits New Costco Warehouse and Gas Facility Ukiah, CA 1 . The Project SaveS Time and Tra�ei Costs for Ukiah Citizens. The. Praject will conveniently provide local Cgstco membets who currently travel to Costco warehouses in other cities with welf known products and services much nearer to their homes and businesses., This also pro�'ides air quality benefits from reduced trip lengfhs: 2. The Project Will Be a Posifive Addi#ion to the City's Retail Community. The Project:enhances the City of Ukiah and its surrounding area with an economically viable de.�eloprnent from a company fhat va(ues its relationship, with the community. 3. The Project Wii.l Create Emp_ loyment Opportunities Within the City. The Projeet will help the ,job/housing balance by generating approximately 175 to 200 new jobs for the citizens: of Ukiah who might :otherwise need to travel to neighboring cities for work. Costco's ;objeetives are to hire promotable employees with enthusiasm and a desire to build a career and to provide great opportunities for career advancement _ by promoting from within . Costco has the I.owest turnover rate in the industry at 6%o for employees with rnore th`an one year experience and pays among the highest' wages in the industry, Costco also provitles a: tremendous benefit package including medical, dental , vision, pharmacy, mental health, lif.e insurance, disability, long term care,. ernp(oyee. assistance program,, flexible spending aecounts, employee stock purchase program , 11 holidays pe .r year, coll..e.ge stu.dent retentian program and 40.1 (k) with ful.l eligibility within 9Q days. Part-time employees working mo.re than 20 hours per week r•eceive core medical , dental and vaeation benefits after 6 months and are guaranteed 24 hours per week: 4. Additional :Sales Tax Revenue The Froject will .gener..ate; additional sales tax revenue for #he City. tt is reasonable to assume that both the Cify and its citizens will benefit from the public services that are supported by the added sales tax revenue generated from Costco. 5. The Project WiII Pro�ide. Quality Landscaping. The Rroject' is designed :with landscaping that provides 6.°!o more landscaping area percentage: than,what is required by the City of Ukiah Municipal code. The planting palette is designed to mateh the region and includes drought tolerant species. Trees are planted thrqughout ttie parking lot areas and, perimeters to provide shading levels similar to the City of Davis shade standards. The iRigation design inc.ludes the use of deep root watering 'bubblers for parking lot shade trees and drip irrigafion for all g#her planting areas fo insure that the plant material is provided with the proper wafer while reducing PAGE 2 waste or ouerwatering : Enhaneed landscaping is incorporated along AirporE Park Boulevard and the northern drive of'the project to help ,screen activities within the Costeo d'e�elopment from Airport Park. 6. The Project Provides Need_ed Alternati�.e Access to the S.ite. The Project will provide pedestrian access throughout �the site to the -adjacent roads and will construct sidewalks along the street frontages that include :ADA campliant ramps and high-visibilify erosswalkpavement markings: In addition, a c.oncrete; pad will be prouided for a new bus shelfer immediately adjacenfito the new warehouse for members arriving by bus. Gostco will provide for ,a Class lll bike lane along Airport Park Blvd . to accommodate forth.ose employees :and members who wish totravel by bicycle and bike racks will be provided around` fhe building entrances. The new. pedestrian paths from - Airport Park Boulevard will be intercannected with interior Costco walks and will be enhance.d with landscaping and trees. The; new bus shelter at the norEhern edge of the project site will also be landscaped with planting and tree.s. fi: Traffic Infrastructure Improvements.: Costco w'ill contribute their fair share to the needed transportation infrastructure improvemenfs at the I-5/Talmage Road interchange through the transportatian impact fee. Additionally,. Costco vuill impletiient irriprovements algng Airport I'ark goule�ard and Commerce_ Drive including new sidewalks, crosswalks, ADA compliant curb ramps, pedestrian connections #rom the frontage road(s) ,and the warehouse and a eoncrete: pad for a new bus shelter. 8. Stormwater Treatment at the Site. The project site does not currently provide for stormwater'treatmenf prior to! discharge into the existing .stormwater channel. The Costco projecf-will provitle an on-site detention basin and a system of bio-fi{tration planters to process and control pea.k; stormwater runoff, reduce any net increases to the existing sy5tem , 'and control the quality of the runoff; The use of fhe detention basin and bio-filtration planter system will redu,ce sformwater peak flows and control/reduce`the amount of stormwater �olume> entering the existing sys#em. In addition , pollutants will be naturafly filtered before entering fhe existing system while pro�iding landscaping value. 9, Energy Sa�ings and Air Quality Protection. Costco operations will incorporate significant energy saving practices in the design and construction of this nevv warehouse facility that help conserve ene,cgy and natural resources ,while reducing Greenhouse Gas Emissions. These 'measures include: • Parking light standards designed t .o provide e�en light distribution while utilizing 20% tess energy compared to a ,greater number of fixtures at lower heights. Metal halide lamps provide a higher level of pereeived brightness wit{i less energy. • Exteriqr light fixtures are designed to minimize stray light and incorporate full cut- off glare shields and are considered night=sky compliant designs. • New building materials are typically extracted and manufactured within fhe region of the new warehouse thereby reducing transportation impacts. PAGE 3 • Construction waste is minimized thraugh the use:.of pre,manufactuced building components , including :structural and ;architectural . metal pan .els. • Pce-manufactueed metal panels prov'ide a higher R-value for insulation and greater solar reflectivity to help consenre energy as compared to a typical masonry block wall or other exterior building materials. • Reflective roofimateria( produces lower he.at absorption and lowers energy requirements during the ` hot summer manths. The roofing material meets the. requi�ements for. the EPA'.s Energy S#ar e. nergy effcienc.y program, + Triple glazed skylights on the r,00f help reduce the annual electrical energy by red,ucing the need for inte.rio� lighting through a program of "daylight harrvesting" . • All new refrigeration systems u.tilize a food safe coolant that eliminates use of CFC's, HCFCs and Halons> • Low>flow fixtures are utilized in restr.00ms and hand sinks. 10. Community In�olvement: CoSteo is an actiVely involved member of the ca►nmunitiss where our warehouses ace located. 1Ne welcome participation in both :local and national programs sueh as: • Adopt a-School Reading Program o Costco employees � volunteer #o help students in first through fourth grades improv,e .#heir reading 'skill5. Currently, there are 135 programs across the United States and Canada, with over 1 , 000 volunteers workmg one-on-one wifh students. - • Qhildren's Hospital Campaigns o In 2012, Costco locations helped to raise $ 19.7 million for 93 children's hospitals across the U ;S. and Canada. • United VUay Campaign 2011 -1 :2 o All North America locations participated in raising over $16.Q million (ineluding company match) : • Fresh Start Backpack Program o Since 1993, more than 4:35 million backpacks have been donafed to children in need in #he `U .S . , Canada, Mexico, Taiwan, Korea, Japan , Puerto F2ico, Australia and the U .K. + Communities in Schools' o Communities In Schools is a natianwide nonprofit organization , which partners with families, schools and community leadets to create a support system for students. Costco supports CIS both fi'naneially and through employee volunteer efforts. • Costco Scholarship Fund o Over 1 , � 00 scholarships have been awarded to :qualified students. PAGE 4 Ukiah Costco Fiscal Impact Analysis Prepared for: Environmental Science Associates Prepared by: � ALH Urban & Regional Economics July 2013 i ALH Urban & Regional Economics 2239 Oregon Street Berkeley,CA 94705 510.704.1599 aherman@alhecon.com July 5, 2013 Mr. Ray Weiss ESA � Community Development 2600 Capitol Avenue, Suite 200 Sacramento, CA 95816 Re: Ukiah Costco Fiscal Impact Analysis Dear Mr. Weiss: ALH Urban & Regional Economics (ALH Economics) is pleased to present this fiscal impact analysis of the proposed Costco project in the City of Ukiah. This analysis was prepared to provide an overview of the project's prospective fiscal impacts on the City of Ukiah's General Fund. It has been a pleasure working with you on this project. Please let me know if there are any questions or comments on the analysis included herein. Sincerely, � � � Amy L. Herman, AICP Principal C:�ALH Econ\2012 Projects\1202 ESA Ukiah Costco\Reports\Ukiah Costco Fiscal Impact Analysis r04.doc TABLE OF CONTENTS I. INTRODUCTION AND SUMMARY OF FINDINGS..........................................................1 INTRODUCTION................................................................................................................. 1 ANALYSISAPPROACH........................................................................................................... 1 SUMMARY OF FINDINGS.......................................................................................................2 II. METHODOLOGY AND DATA RESOURCES...................................................................6 METHODOLOGY................................................................................................................6 DATARESOURCES...............................................................................................................6 III. FISCAL ASSUMPTIONS AND REVENUE AND EXPENDITURE ESTIMATES....................8 FISCALASSUMPTIONS..........................................................................................................$ FISCAL REVENUE ESTIMATES...................................................................................................9 COUNTY GENERAL FUND REVENUE ESTIMATES......................................................................... 1 2 FISCAL EXPENDITURE ESTIMATES ........................................................................................... 1 3 IV. FISCAL IMPACT FINDINGS........................................................................................ 15 NET FISCAL IMPACT ANALYSIS OF UKIAH COSTCO PROJECT......................................................... 1 5 FISCAL IMPACT LIMITATIONS................................................................................................ 1 6 ASSUMPTIONS AND GENERAL LIMITING CONDITIONS............................................... 18 APPENDIX A: EXHIBITS APPENDIX B: TRIPLE FLIP AND CITY SHARE OF SALES TAX INFORMATION I. INTRODUCTION AND SUMMARY OF FINDINGS INTRODUCTION ALH Urban & Regional Economics ("ALH Economics") prepared a fiscal impact analysis of the proposed Costco store in Ukiah, California. The proposed project development site is located on Airport Park Boulevard in the City of Ukiah, near other major retailers such as Walmart, Friedman's, Food Maxx, and Staples. This project is planned to include a 148,000-square-foot Costco store with 20 gas pumps on approximately 15.33 acres (the "Project"). Costco will be purchasing the development site from the City of Ukiah Successor Agency for Dissolved Ukiah Redevelopment Agency. The purpose of this analysis is to demonstrate the net fiscal impacts of the Project relative to the City of Ukiah General Fund. The General Fund is the City's primary source of revenues and expenses, and is the mechanism through which the City's basic services are provided to residents, businesses, and other facilities located within the City of Ukiah. The study also includes information about the share of property tax revenues accruing to other taxing entities. The fiscal impact analysis is based on key Project information and select assumptions developed by ALH Economics. All relevant information and assumptions are cited in the report or the accompanying exhibits. This includes the Project's estimated 175 to 200 employees, approximately one-half of which are estimated to be full-time employees and one-half of which are estimated to be part-time employees, for a total of 152 full-time equivalent employees.' All dollar figures cited are in 2012 dollars. The analysis is benchmarked to the timeframe corresponding with stabilized operations of the Costco store. Due to the nature of the development planning process, assumptions relevant to the fiscal impact analysis may change over time. This dynamic nature suggests that study findings should be considered general rather than detailed indications of the Project's forecasted performance. ANALYSIS APPROACH The Costco store fiscal impact analysis is based upon independent research and upon findings from the urban decay study prepared for the store as part of the environmental review process. The independent research pertains to demographic estimates, tax rates, City of Ukiah General Fund revenue sources, and estimated City of Ukiah service costs. The City of Ukiah's budget and other governmental documents were among the major resources for the analysis. The urban decay study, also conducted by ALH Economics, explores the potential for the Project to cause or contribute to urban decay. This study, titled "Costco Wholesale Warehouse Urban Decay Analysis", was issued in August, 2012. As part of its analysis, the urban decay study projects the retail sales performance of the Project, providing an estimate of the Costco store's gross sales. In addition, the study examines the potential for some of the Costco store's sales to occur to the detriment of existing retailers. Therefore, the urban decay study also presents findings regarding the store's net increment of sales new to the market area served by the Project. Pursuant to the urban decay study, the market area identified for the Project includes all of Mendocino County and substantial portions of Lake County. All cited tax rates in the fiscal impact study were pursuant to the tax structure at the time ' The part-time employees are assumed to work an average of 25 hours weekly. Ukiah Costco Fiscal Impact Analysis 1 ALH Urban & Regional Economics the Urban Decay Analysis was completed, in August 2012. Cited City service costs are the most recently available costs at that time as well. The results of the Ukiah Costco Project fiscal impact analysis are presented for two scenarios. One scenario, comprising a minimum net fiscal impact, assumes a worst case stance that all existing retail sales potentially diverted by the Costco store will occur to the detriment of existing Ukiah retailers. This is a worst case scenario because it is unlikely to actually occur, since the sales diversions resulting from the Costco store development will likely be spread among a wide range of stores, including stores throughout the Project's market area. Thus, to assume that all sales will be diverted from Ukiah retailers is an analytic convention designed to maximize conservatism in the fiscal impact analysis. The second scenario, comprising a maximum net fiscal impact, is based on the gross sales estimates generated by the Ukiah Costco store, with no detrimental impacts on existing Ukiah retailers. In turn, this presents an unlikely best case analysis, as it is most likely that the results will occur somewhere between the two approaches, with some, but not all diverted sales occurring to the detriment of existing Ukiah retailers. Another component of sensitivity factored into the analysis pertains to the City of Ukiah's property tax rate. The Costco Project site is located in an area that has historically comprised a City of Ukiah Redevelopment Project Area. In the past, the majority of property taxes generated from properties in this Redevelopment Project Area accrued to the City of Ukiah's Redevelopment Agency. However, recent State of California legislative and court actions have resulted in the demise of Redevelopment in California. Accordingly, this fiscal impact analysis assumes that property tax distribution will revert to a more traditional distribution, with the City of Ukiah General Fund receiving a share of the basic 1% property tax rate consistent with the share collected from other City of Ukiah properties outside the Redevelopment Project Area. ALH Economics reached out to the Mendocino County Auditor-Controller to obtain the City of Ukiah's property tax rate for a representative property not in the City's Redevelopment Project Area. The information shared by the Auditor-Controller, indicated a 9.38% (rounded) property tax rate for the City of Ukiah. SUMMARY OF FINDINGS Fiscal Impact Analysis The results for the minimum and maximum net fiscal impact analyses are summarized below. These findings are summarized in Exhibit 1 on the following page. Minimum Net Fisca/ lmpact Findings. The minimum net fiscal impact findings indicate that on an annual basis, the Project is estimated to generate $471,194 in gross revenue to the City of Ukiah General Fund. The largest General Fund revenue component is incremental retail sales tax estimated at $396,103 per year, even with the worst case assumption that all sales estimated to be diverted from existing retailers are Ukiah retailers. All other General Fund revenues are much lower, with property taxes comprising the next largest General Fund revenue source at $25,285, followed by business license fees at $22,274, property tax in lieu of VLF revenues at $21,521, and yet other lesser revenues. In addition, the Project's City of Ukiah Measure S sales tax proceeds dedicated to a special Public Safety Fund are estimated at $198,051. Ukiah Costco Fiscal Impact Analysis 2 ALH Urban & Regional Economics Exhibit 1 Ukiah Costco Annual Net Fiscal Impact Analysis(1) City of Ukiah General Fund and Public Safety Fund FY 2011-12 Dollars Net Fiscal Impact General Fund Revenues and Expenditures Categories Minimum(2) Maximum(3) Revenues (4) Property Taxes(5) $25,285 $25,285 Property Tax in Lieu of VLF(6) $21,521 $21,521 Business License Fees(7) $22,274 $38,620 Retail Sales Taxes(8) $396,103 $617,711 Franchise Fees(9) $5,803 $5,803 Fines, Fees&Forfeitures(9) $208 $208 Sub-total $471,194 $709,149 Expenditures(10) General Government $8,175 $8,175 Public Works $3,681 $3,681 Community Services $6,851 $6,851 Public Safety $32,414 $32,414 Capital Maintenance $6,327 $6,327 Sub-total $57,447 $57,447 General Fund Net Impact All Revenues and Expenses(11) $413,747 $651,702 Additional Measure S Sales Tax Revenues to to Public Safety Fund(12) $198,051 $308,856 General Fund and Public Safety Fund Net Impact All Revenues and Expenses(13) $611,798 $960,557 Source:ALH Urban&Regional Economics. Notes: (1)Includes estimated General Fund revenues less estimated General Fund expenditures. (2)The minimum net fiscal impact corresponds with the maximum sales impact scenario presented in Exhibit 6.This scenario is highly conservative and assumes that all taxable sales diverted as a result of the Costco store occur in the City of Ukiah,thus reducing the City's taxable retail sales base.This is a highly conservative assumption because sales diversions will occur in other locations besides the City of Ukiah.Three revenue sources are varied for this analysis,including retail sales tax, business license fees(see variation in business fees in Exhibit 7),and Measure S sales tax. (3)The maximum net fiscal impact corresponds with the minimum sales impact scenario presented in Exhibit 6.This would comprise no taxable sales diversions from existing City of Ukiah retailers.This scenario corresponds to the net fiscal impact analysis of the Costco store absent consideration of any existing retailer impacts. (4)Includes the most substantial revenues anticipated to accrue to the City of Ukiah General Fund resulting from the ProjecYs stabilized operations.However,there may be yet additional revenues flowing to the General Fund pursuant to the ProjecYs operations. (5)See Exhibit 4. (6)See Exhibit 5. (7)See Exhibit 7. (8)See Exhibit 6 for the taxable retail sales and Exhibit 3 for the retail sales tax rate. (9)See Exhibit 8 for the per employee revenue figures and Exhibit 2 for the estimated number of Project employees. (10)The estimated service costs per employee were derived in Exhibit 9.These costs were multiplied by the estimated number of Project employees presented in Exhibit 2. (11)Comprises revenues less expenditures. (12)See Exhibit 6 for the taxable sales range and Exhibit 3 for the Measure S sales tax rate.As with the retail sales tax estimate,the taxable sales estimate varies pursuant to the estimated taxable sales diversions. (13)Includes the Measure S sales tax revenues. The average cost General Fund expenditures estimated to be attributable to the Project total $57,447 annually. This reflects the average City of Ukiah service costs for General Government, Public Works, Community Services, and Public Safety, plus an allocation for Capital Maintenance. The net result of the Project's fiscal impact at stabilized operations for the minimum net fiscal impact scenario, assuming on a worst case basis that all diverted sales are diverted from Ukiah retailers, is a projected $413,747 annual contribution to the City of Ukiah's General Fund. This represents an annual contribution net of estimated City costs to service the Project equivalent to approximately 2.8% of the City's General Fund expenditures, which is a moderate contribution. Factoring in the Measure S sales tax proceeds, which are dedicated to a special Public Safety Fund, boosts the Project's total net revenue under the minimum net fiscal impact scenario to the City of Ukiah to $611,798, or approximately 4.2% of the City's General Fund expenditures. Maximum Net Fiscal lmpact Findings. The maximum net fiscal impact findings indicate that on an annual basis, the Project is estimated to generate $709,149 in gross revenue to the City of Ukiah General Fund. The largest General Fund revenue component is incremental retail sales tax estimated at $617,711 per year, which corresponds to retail sales taxes on all taxable Costco sales. This corresponds with the store's gross sales, irrespective of any potential impacts on existing Ukiah retailers. All other General Fund revenues are much lower, with business license fees totaling $38,620 comprising the next largest General Fund revenue source, followed by property taxes at $25,285, property tax in lieu of VLF revenues at $21,521, and yet other lesser revenues. In addition, the Project's City of Ukiah Measure S sales tax proceeds dedicated to a special Public Safety Fund based on total taxable sales are estimated at $308,856. The average cost General Fund expenditures estimated to be aitributable to the Project under the maximum net fiscal impact scenario are the same as the minimum net fiscal impact scenario, or $57,447 annually. The net result of the Project's gross fiscal impact at stabilized operations for the maximum net fiscal impact scenario is a projected $651,702 annual contribution to the City of Ukiah's General Fund. This represents an annual contribution net of estimated City costs to service the Project equivalent to an estimated 4.5% of the City's General Fund expenditures, which comprises a substantial contribution. Factoring in the Measure S sales tax proceeds, which are dedicated to a special Public Safety Fund, boosts the Project's total net revenue under the maximum net fiscal impact scenario to the City of Ukiah to $960,557, or approximately 6.6% of the City's General Fund expenditures. Other Taxing Entity Properfy Tax Revenues. In addition to the City of Ukiah, there are 14 other taxing entities that will receive a portion of the revenues generated by the basic 1.0% property tax. The entities that will receive the greatest estimated share of property tax revenues include: o Ukiah Unified School District, $92,886 o Mendocino County, $65,001 o Educational Revenue Augmentation Funds,2 $42,510 o Mendocino Community College, $17,420 o Mendocino County Office of Education, $11,180 2 These funds are subsequently redistributed to educational entities. Ukiah Costco Fiscal Impact Analysis 4 ALH Urban & Regional Economics Including the City of Ukiah this accounts for 94.4% of all generated property tax revenues. Other taxing agencies that will share the remaining $15,146 in property tax revenues include the library, Russian River Cemetery, and the County water agency, among others. Mendocino County General Fund Revenues. In addition to $65,001 in annual ad valorem property taxes, the Mendocino County General Fund will benefit from sales tax revenues generated by the Project's taxable sales. These sales tax revenues are estimated to range from $49,513 to $77,214. Thus, Mendocino County's General Fund is estimated to receive from $114,514 to $142,215 in revenues annually resulting from the Project's development in Ukiah. Limitations of Findings The foregoing findings are intended to give a general sense of the net fiscal impacts of the Project. The figures are not precise estimates and changes will occur if the City of Ukiah fiscal revenue and expenditure factors or other assumptions are developed with more precision or change. Nonetheless, the findings suggest a very strong likelihood that the Ukiah Costco Project will result in a significant net positive fiscal impact to the City's General Fund and the Public Safety Fund. Ukiah Costco Fiscal Impact Analysis 5 ALH Urban & Regional Economics II. METHODOLOGY AND DATA RESOURCES METHODOLOGY ALH Economics developed an approach to the proposed Ukiah Costco project fiscal impact analysis designed to provide an understanding of the Project's net fiscal impact on the City of Ukiah's General Fund using specific Project information as much as possible. This includes estimates of revenues generated by the Project that accrue to the City's General Fund as well as service costs incurred by the City funded through the General Fund. The analysis is grounded in the City's budget and existing revenue base and performance estimates for the Project. The analysis is structured to examine the Project's impacts upon full build out and assumed stabilization. To facilitate the analysis and interpretation of the results, the findings are presented in 2012 dollars. The City expenditures analysis was conducted using two approaches—the marginal cost, or case study approach, and the average cost approach. The marginal cost approach involves obtaining cost information directly from City department representatives based on Project specifics, such as new building area, number of employees, and type of operations. This approach is often perceived as the more accurate approach to estimating expenditures, because it is based on expectations of actual service requirements and associated City costs. For the purpose of this study, queries about marginal costs were directed to City department representatives by ALH Economics. Revenues can also be estimated on a marginal basis, based on revenues tied to specific project performance characteristics, such as property value and business license fees. The alternative approach to expenditures is an average cost approach. This is typically the most expeditious approach for a fiscal impact analysis but is also one that can result in under or over estimation of both project-related costs and revenues. In this approach, costs are derived by determining an average cost to provide existing services on a per capita basis for the relevant population served, which is then applied to the comparable population base for the project under study. The average costs in this study are based on the City of Ukiah's annual budget, which for this analysis included the Adopted Budget for 201 1-2012. Wherever possible, efforts were made throughout the analysis to develop assumptions or estimates in a conservative manner, in order to not overstate potential net revenues aitributable to the Project. The analysis was conducted in a series of linked excel-based worksheets. Exhibits generated from these worksheets are included in the Appendix. DATA RESOURCES The fiscal impact analysis relied upon a number of key resources. These resources are all identified in the sources and notes to the exhibits developed to support the analysis and provide the results. These resources are as follows: • Projectenvironmentaldocuments. ALH Economics prepared a study assessing the urban decay impacts of the Project as part of the Project's environmental documentation. This report, titled "Costco Wholesale Warehouse Urban Decay Analysis," was the source of key assumptions including minimum and maximum taxable sales. Ukiah Costco Fiscal Impact Analysis 6 ALH Urban & Regional Economics • Materia/s provided by Costco Who%sa/e Corporation. These materials include the Project's estimated sales, information about full-time and part-time employee counts, and estimated construction costs. • Materia/s provided by other Project representatives. These include Project information submiited to the City of Ukiah by David Babcock & Associates including acreage and estimated employment. • City of Ukiah resources. These include the City's website, the City of Ukiah 201 1-2012 Adopted Budget, the Finance Department and other departmental representatives, and the City of Ukiah Business License Fee schedule. • Third pariy resources. A number of third party resources were referred to for information important to the analysis. These sources include RealQuest, the State of California Department of Finance, the State of California Employment Development Department, the State of California Board of Equalization, the Mendocino County Auditor-Controller, and the municipal tax consulting firm Hinderliter, de Llamas & Associates. All of these resources are identified as warranted in the series of exhibits that document the fiscal impact analysis as well as in the text. The cited exhibits can be found in the Appendix. Ukiah Costco Fiscal Impact Analysis 7 ALH Urban & Regional Economics III. FISCAL ASSUMPTIONS AND REVENUE AND EXPENDITURE ESTIMATES FISCAL ASSUMPTIONS The assumptions and building blocks underlying the fiscal impact analysis are presented in Exhibits 2 and 3, which can be found in the Appendix. Footnotes to the exhibits provide detail in addition to what is provided in the text. A summary of these exhibits and their primary purpose follows. • Exhibit 2, Project Description, Employment, and Service Population Estimates. This exhibit summarizes the proposed Ukiah Costco development program. This program is based on information provided by David Babcock & Associates and Costco Wholesale Corporation. Stabilized employment estimates are provided for on a full-time equivalency employment basis. These provide a foundation for estimating the Project's "service population." Ukiah Costco employment is estimated to total 175 to 200, or an average of 187.5. Pursuant to information provided by Costco, an estimated one-half of these employees will be full-time and one-half will be part-time. The part-time employees are estimated to average 25 hours per week. This results in estimated stabilized full-time equivalent employment totaling 152. The Project's service population estimate therefore totals 76, which comprises one-half the 152 estimated full-time equivalent employees, on the assumption that employees do not require the same level of service as residents. This is an industry-standard assumption and is relevant to the calculation of average cost City expenditures, provided as an alternative to the City's estimated marginal service costs.3 Some City revenues are also estimated based on the Project's service population. • Exhibit 3, City of Ukiah Demographic, Employment, and Tax Characteristics. This exhibit contains many of the baseline assumptions and information necessary to generate estimates of City of Ukiah revenues and expenses applicable to the Project. These include population and employment estimates used to generate the size of the City's existing service population for the purpose of deriving existing average cost expenditures and some per capita revenues. These estimates include a population base of 15,960 in January 2012 and an employment base of 6,520 in May 2012. Both figures are assumed to comprise population base indicators for the study's 2012 analysis. Based on the assumption that each employee is equivalent to one-half a resident, the City's service population is estimated to total 19,220. This exhibit also includes key tax-related information unique to Ukiah, such as property and sales tax rates, vehicle in lieu of property tax revenues, and secured and unsecured property assessed valuation, all of which are germane to the fiscal impact analysis as noted in other exhibits. Most relevant is the City's estimated share of the basic 1% property tax rate collected by the County. This is the estimated rate applicable to property located in the City of Ukiah not located within a Redevelopment Project Area. The Costco property is located in Ukiah's Redevelopment Project Area. Previously, the majority of property taxes generated from properties in the Redevelopment Area accrued to the City of Ukiah's Redevelopment Agency. However, recent State of California legislative and court actions have resulted in the demise of 3Most fiscal impact analysts typically equate 2 to 3 employees with 1 resident, or 0.5 to 0.33 employees per resident, on the theory that people who work in an area place less demands on services than residents. For the purpose of this analysis ALH Economics used the 0.5 employees per resident factor, which is a more conservative choice than the 0.33 factor, especially relative to service cost estimates based on the average cost approach. Ukiah Costco Fiscal Impact Analysis 8 ALH Urban & Regional Economics Redevelopment in California. Accordingly, this fiscal impact analysis assumes that property tax distribution will revert to a more traditional distribution, with the City of Ukiah General Fund receiving a share of the basic 1% property tax rate consistent with the share collected from other City of Ukiah properties outside the Redevelopment Project Area. ALH Economics reached out to the Mendocino County Auditor-Controller to obtain the City of Ukiah's property tax rate for a representative property not in the City's Redevelopment Project Area. The information shared by the Auditor-Controller indicated a 9.38% (rounded) property tax rate for the City of Ukiah. This exhibit indicates the City's sales tax rate is 1.0%. This is the effective sales tax rate for the City. This comprises a basic rate of 0.75%with an additional 0.25% generated pursuant to the triple flip, which includes sales taxes diverted temporarily by the State of California but returned via other fiscal means. This other fiscal means is through property taxes, labeled "Triple-Flip Property Tax in Lieu" in the City's budget. Information about how the triple flip works in California is included in Appendix B. This information was prepared by the municipal tax consulting firm Hinderliter, de Llamas & Associates. This appendix also includes copies of materials from the State of California Board of Equalization referencing the City of Ukiah's 1 .0% sales tax rate. Finally, the City has a special '/� cent sales tax, referred to as Measure S Sales Tax, which proceeds go to fund a special Public Safety Fund. This tax is due to expire in September 2015 unless the electorate votes to extend the tax. FISCAL REVENUE ESTIMATES The revenue calculations for the fiscal impact analysis are presented in Exhibits 4 through 7. A summary of these exhibits and their primary purpose follows. • Exhibit 4, Incremental Property Valuation and Annual Property Tax, Property Valuation Pursuant to the Cost Approach, City of Ukiah, 2012 Dollars. This exhibit presents the assumptions and conclusions regarding the property valuation of the Project upon the completion of development and the estimated property tax revenues that will accrue to the City of Ukiah General Fund. The total valuation is estimated as well as the increment net of the existing property value. When complete, the Mendocino County Assessor will value the property for property tax purposes using three approaches to value: cost; income; and comparables. For the purpose of this analysis, ALH Economics prepared a cost approach based upon currently available information, such as land acquisition cost and estimated construction costs. Based upon construction costs provided by Costco Wholesale Corporation, and reviewed for reasonableness by ALH Economics, and a land acquisition cost provided by the City of Ukiah, the Project's property valuation upon completion is estimated at $26.9 million. Costco Wholesale Corporation is purchasing 15.33 acres of land from the City of Ukiah for this Project. This property is part of a larger assemblage of land that the City of Ukiah had appraised for $3.50 per square foot. This appraised value comprises the negotiated sales price between the City of Ukiah and Costco Wholesale Corporation. For 15.33 acres this comprises a $2,337,212 sale price. Because the City of Ukiah Successor Agency for Dissolved Ukiah Redevelopment Agency is the current properfy owner, no property taxes are currently generated by the property. Therefore, Ukiah Costco Fiscal Impact Analysis 9 ALH Urban & Regional Economics 100% of the property taxes based upon the estimated value of the Project will comprise net new property taxes. Accordingly, the incremental annual property tax revenues that will accrue to the Ukiah General Fund are estimated at $25,285. This is based on the City of Ukiah receiving 9.38% of the basic 1% property tax proceeds as cited in Exhibit 3 and depicted in Exhibit 4. Along with the City's share of the basic 1.0% property tax Exhibit 4 identifies other taxing entities that will receive property tax revenues. These are the entities for a representative tax rate area in the City of Ukiah. The actual distributions for the Costco site may vary from these distributions, but the variances are not likely to be substantial. There are an additional 14 taxing entities that will receive a share of the property taxes. The entities with the largest percentages and associated property tax revenues estimates are as follows: o Ukiah Unified School District, 34.48%, $92,886 o Mendocino County, 24.13%, $65,001 o Educational Revenue Augmentation Funds4, 15.78%, $42,510 o Mendocino Community College, 6.47%, $17,420 o Mendocino County Office of Education, 4.15%, $1 1,180 Including the City of Ukiah this accounts for 94.4% of all generated property tax revenues. Other taxing agencies that will share the remaining 5.6% of property tax revenues, or $15,146, include the library, Russian River Cemetery, and the County water agency, among others. • Exhibit 5, Property Tax in Lieu of VLF Estimates, Project Stabilization, Net New or Incremental Valuation Attributable to Ukiah Costco Development, City of Ukiah, FY 2011-12 Dollars. This revenue component, Property Tax in Lieu of Vehicle License Fees (VLF), is derived from the Project's anticipated contribution to increased property valuation throughout the City of Ukiah. This is the method by which such tax revenues are estimated by the State of California and redistributed to local jurisdictions. This is a state substitute for prior motor vehicle license taxes that were redistributed by the State to municipalities. The results of these calculations indicate that the incremental value associated with the Project is estimated to increase the City's assessed valuation by 1.77%, a noticeable increase. This will provide an estimated revenue increase of $1 .2 million to the City of Ukiah. • Exhibit 6, Estimated Costco Project Taxable Retail Sales —Maximum and Minimum, City of Ukiah, FY 2011-12 Dollars. Retail sales tax revenues generated by the Project will comprise a major revenue source to the City of Ukiah. This exhibit presents the total estimated taxable retail sales that will be generated by the Costco store and the minimum net taxable amount, less potential taxable sales diversions from existing Ukiah retailers. These are presented as maximum and minimum taxable sales estimates. The maximum taxable sales estimate corresponds with the estimated taxable portion of the Costco sales. The amount and distribution of sales is estimated in the previously referenced companion report, "Costco Wholesale Warehouse Urban Decay Analysis." The total store sales estimate upon Project stabilization is estimated at $113.8 million. The companion urban decay study provided information about taxable versus nontaxable sales in major sales °These funds are subsequently redistributed to educational entities. Ukiah Costco Fiscal Impact Analysis 10 ALH Urban & Regional Economics categories reported by the State of California Board of Equalization. These include estimates that 30% of food sales are taxable and 33% of pharmacy sales are taxable. The estimated pharmacy sales are included in the "Other Retail Group" sales estimate referenced in Exhibit 6 pursuant to State of California Board of Equalization (BOE) classification procedures, with pharmacy sales assumed to comprise 20.73% of the "Other Retail Group" estimated sales component. This assumption is based on ALH Economics analysis of BOE data for the market area. The urban decay study also referenced a typical portion of "General Merchandise" sales that are not taxable. However, for the purpose of this analysis it is assumed that this non- taxable portion is not relevant since this is an allocation for food sales and there is already a large increment of food sales estimated for the Costco store. The maximum taxable retail sales generated by the Costco store are estimated to total $61.8 million. This is the gross amount of taxable sales estimated to be generated by the Costco store. On a worst case basis, sales at the Costco store will be achieved to the detriment of other existing retailers throughout the trade area served by the Costco store. This market area, as defined in the ""Costco Wholesale Warehouse Urban Decay Analysis," includes all of Mendocino County and a large portion of Lake County. Thus, any sales that are diverted from existing retailers to the benefit of Costco will likely be distributed throughout this market area. However, to provide a worst case analysis, the fiscal impact analysis conservatively estimates the minimum net taxable retail sales generated by the Costco store assuming that all diverted sales are diverted from Ukiah retailers. These diverted sales are estimated in "Costco Wholesale Warehouse Urban Decay Analysis" to total $46.7 million. The diversion of all these sales from Ukiah retailers is an unlikely scenario, but as stated, presents a worst case analysis, which will result in the lowest estimated retail sales tax estimate possible for the Costco store. Pursuant to the above-cited worst case assumptions, and the same taxable vs. non-taxable assumptions cited above, the minimum net taxable retail sales estimated for the Costco store totals $39.6 million. • Exhibit 7, Select City of Ukiah General Fund Revenues — Business License Fees and Sales Taxes, City of Ukiah, FY2011-12 Dollars. There are two revenue sources identified in this exhibit along with the corresponding revenues estimated to be generated by the Project. These revenue sources include business license fees and retail sales taxes. Yet other revenues are referenced in Exhibit 8. As presented in this exhibit, the Costco store is estimated to generate $38,620 annually in recurring business license fee revenues. This is based on the City's current fee of $0.35 per $1,000 in gross receipts, with no limitation (see Exhibit 3). This business license rate is applied to the gross sales estimate for the Costco store less an estimated 3% allocation for alcohol (pursuant to Costco information), which is not subject to the City's Business License Fee. As with the taxable sales estimate, a more conservative net Business License Fee is also estimated, continuing the worst case analysis assumption that all sales diverted from existing retailers are diverted from Ukiah retailers. For this estimate, the worst case assumption is that $46.7 million in sales will be lost to local businesses (see Exhibit 6). Assuming all of these sales are subject to the Business License Fee results in a loss of $16,347 in Business License Ukiah Costco Fiscal Impact Analysis 1 1 ALH Urban & Regional Economics Fee income to the City of Ukiah's General Fund. Thus, the net Business License Fee revenue would be $22,274 annually. Similar to the Business License Fee estimate, there is a minimum and maximum sales tax estimate for the Costco store, corresponding to the taxable sales estimates in Exhibit 6. These taxable sales estimates range from $39.6 million to $61 .8 million.s Based on the City's 1.0% sales tax rate this equates to $396,103 to $617,711 in sales tax revenues to the City's General Fund. While it is in place, additional Measure S Sales tax revenues will be generated, totaling $198,051 to $308,856 in additional sales tax revenues. • Exhibit 8, Select City of Ukiah General Fund Revenues — Franchise Tax and Fees, Fines & Forfeitures, City of Ukiah, FY 2011-12 Dollars. There are two revenue sources identified in this exhibit along with the corresponding revenues estimated to be generated by the Project. These revenue sources include franchise taxes and fees, fines & forfeitures. The Franchise Fees are associated with use of franchised utilities, including PG&E and City utilities. There are also cable t.v. franchise fees. These fees will not be generated on a per employee basis, but rather based upon utility usage. However, for the purpose of fiscal impact analysis, the franchise tax revenue projection is prepared on a per service population basis as an analytical convention, with employment in this case serving as a proxy for measuring franchise tax revenues. Therefore, the calculation in Exhibit 8 is based on the City's Franchise Tax revenues calculated on a per service employee basis and then multiplied by the service employee equivalent of the anticipated Project employment. This fee does not include the cable t.v. portion of the City's projected franchise fee payment because cable t.v. use is typically associated with residential use and not business use. The result is a fee of $76.36 per service employee, which when multiplied by the Project's service population of 76 results in an annual franchise tax fee of $5,803. While relatively low in comparison, the Project is also estimated to generate approximately $208 annually in fees, fines & forfeitures associated with fees and fines collected by the City of Ukiah for various local transgressions. This fee revenue is also calculated on a per service population basis, averaging $2.74 per service population. Applying this fee to the Project's 76 service population equivalent results in the $208 annual estimate. COUNTY GENERAL FUND REVENUE ESTIMATES As noted in Exhibit 4, Mendocino County receives a portion of the property taxes that will be generated by the Project. These ad valorem taxes, totaling $65,001 per year, will accrue to the County's General Fund. As noted in Exhibit 4, yet other County funds will receive a portion of property taxes. The County's General Fund will additionally receive sales tax revenues resulting from the Project's taxable sales. Pursuant to Exhibit 6, the minimum and maximum amount of taxable sales generated by the Project will total $39.6 million to $61.8 million. The County's sales tax rate is 0.125% of taxable sales. The following text table estimates what the County's resulting sales tax benefits will be based on the range of Costco's estimated net taxable sales. 5 The Costco project is anticipated to open with 16 gas pumps, increasing to 20 pumps at stabilization. Projected gas sales and associated sales taxes are anticipated to remain constant, with the sales achieved with 16 pumps redistributed among 20 pumps following the expansion. Ukiah Costco Fiscal Impact Analysis 12 ALH Urban & Regional Economics Mendocino County Costco-Related General Fund Revenues, 2012 Dollars Revenue Category Minimum Maximum Costco Taxable Sales Net Taxable Sales (1) $39,610,272 $61,771,121 County General Fund Sales Tax and Other Revenues Sales Tax Revenues (2) $49,513 $77,214 Ad Valorem Property Tax Revenues (3) $65,001 $65,001 Total County General Fund Revenues $114,514 $142,215 (1) See Exhibit 6. (2) The County's sales tax rate is 0.125%, applied to the estimated taxable sales. (3) See Exhibit 4. As the above table indicates, the County's Costco-related sales tax revenues will range from $49,513 to $77,214. Adding these estimated revenues to the County's ad valorem property tax revenues results in an annual County General Fund revenue estimate ranging from $114,514 to $142,215. Thus, the County's General Fund is estimated to receive a minimum of $114,514 in revenues annually resulting from the Project's development in Ukiah. FISCAL EXPENDITURE ESTIMATES As discussed in the Methodology section, fiscal impact studies typically engage in two methods to estimate project-based service costs. One is the average cost approach, typically implemented in the absence of detailed service provision and cost information, and one is the marginal, or case study approach, which derives estimated service costs based on expectations of service demands and associated actual service delivery costs. Key City of Ukiah staff were queried regarding the marginal costs to provide services to the proposed Ukiah Costco Project. Information conveyed in conversations with these staff suggested that limited additional service costs were anticipated associated with Costco. The City's Public Safety Officer indicated he did not anticipate much need for incremental police or fire services. His greatest concern involved holiday season traffic and the potential for increased traffic accidents due to a perceived higher volume of consumer shopping. He also expressed a desire that the Costco grounds be developed in a manner designed to dissuade congregations of homeless persons. The City's Public Works Director also did not anticipate a marginal impact on the City's cost of Public Works services. However, he did mention a general City need for Capital Maintenance, not specifically tied to development of the Costco, but also not included in the City's budget. An allocation for this cost item is included in the average cost analysis, discussed below. Finally, the City's Community Services Administrator was also queried about added service costs associated with Costco. Her concerns related primarily to increased demands on City parks and recreational services due to Costco's market draw and expectations of attracting shoppers and visitors who do not already frequent Ukiah businesses and services. However, no costs were assigned to these indirect perceived increases in parks and other recreational facilities use. The results of the City staff discussions regarding marginal costs of providing services to Costco suggested a minimal increase in service costs, if any, directly tied to the new Costco store. However, in Ukiah Costco Fiscal Impact Analysis 13 ALH Urban & Regional Economics an effort to present a conservative analysis, Exhibit 9 includes the average cost approach to City services, to provide maximum cost estimates associated with providing services to the Project. • Exhibit 9, City of Ukiah General Fund Average Cost Expenditures, FY 2011-2012 Adopted Budget, Fiscal Impact Factors. In this exhibit the City of Ukiah's General Fund Expenditures are expressed as average costs relative to key populations, e.g., the City's service population or the City's resident population. This includes the four major departments that collectively include the provision of all City services. These are General Government, Public Works, Community Services, and Public Safety. In addition, discussions with Ukiah's Public Works Director suggested the addition of another category, Capital Maintenance. According to the Public Works Director Ukiah has identified a need for $1.6 million to provide for street system maintenance designed to keep the City's streets at a certain rating level. This expenditure estimate is not included in the City's budget. Therefore, it was suggested that this line item amount be added to the budget calculations, and then apportioned across the relevant City service population. Accordingly, this line item is included in Exhibit 9, with the anticipated costs allocated across the City's service population. For the five departments/expenditure categories assumed to serve the City's service population, the average service costs are $755.89 per service population, which breaks down into $755.89 per resident and $377.94 per employee. Exhibit 9 is structured to facilitate analysis of the City's expenditures on a fixed and variable cost basis. Using this approach, some of the City's departmental expenditures are assumed to be fixed regardless of the size of the population served. The balance of the expenditures is then deemed to be variable, i.e., to change with the size of the population served. While Exhibit 9 is structured to accommodate a fixed versus variable analysis, the analysis conservatively assumes that all costs are variable. This means all of the departmental expenditures are spread across the City's service population. As stated, this is a conservative approach, and serves to provide a maximum estimate of average service costs associated with development of the proposed Ukiah Costco store. Ukiah Costco Fiscal Impact Analysis 14 ALH Urban & Regional Economics IV. FISCAL IMPACT FINDINGS NET FISCAL IMPACT ANALYSIS OF UKIAH COSTCO PROJECT The results of the Ukiah Costco Project fiscal impact analysis are presented in Exhibit 10 (which is a duplicate of the earlier referenced Exhibit 1). These findings present the estimated annual revenues and expenditures accruing to the City of Ukiah's General Fund at build out of the Project, assuming two scenarios: 1) only a portion of the Costco store's sales and associated revenue will comprise net new sales to the City of Ukiah pursuant to worst case assumptions regarding diverted sales, comprising the minimum net fiscal impact scenario; and 2) all Project sales tax and other revenues are net new to the City of Ukiah, comprising the maximum net fiscal impact scenario. Finally, the Measure S retail sales tax revenues dedicated to Public Safety are also separately estimated. Minimum Net Fiscal Impact Scenario Summary of Revenue. The minimum net fiscal impact findings indicate that on an annual basis, the Project is estimated to generate $471,194 in gross revenue to the City of Ukiah General Fund. The largest General Fund revenue component is incremental retail sales tax estimated at $396,103 per year, even with the worst case assumption that all sales estimated to be diverted from existing retailers are Ukiah retailers. All other General Fund revenues are much lower, with property taxes comprising the next largest General Fund revenue source at $25,285, followed by business license fees at $22,274, property tax in lieu of VLF revenues at $21,521, and yet other lesser revenues. There are likely to be yet additional General Fund revenues generated by the Project, but the most substantial revenue sources are reflected in the $471,194 estimate. In addition, the Project's City of Ukiah Measure S sales tax proceeds dedicated to a special Public Safety Fund are estimated at $198,051 . Summary of Expenditures. The average cost General Fund expenditures estimated to be attributable to the Project total $57,447 annually. This reflects the average City of Ukiah service costs for General Government, Public Works, Community Services, and Public Safety and an allocation for Capital Maintenance. These are the estimated average service costs for the Project's 152 full-time equivalent employees. Net Fiscal Impact Summary. The net result of the Project's fiscal impact at stabilized operations for the minimum net fiscal impact scenario, assuming on a worst case basis that all diverted sales are diverted from Ukiah retailers, is a projected $413,747 annual contribution to the City of Ukiah's General Fund. This represents an annual contribution net of estimated City costs to service the Project equivalent to approximately 2.8% of the City's General Fund expenditures. Factoring in the Measure S sales tax proceeds, which are dedicated to a special Public Safety Fund, boosts the Project's total net revenue under the minimum net fiscal impact scenario to the City of Ukiah to $61 1,798, or approximately 4.2% of the City's General Fund expenditures. Ukiah Costco Fiscal Impact Analysis 15 ALH Urban & Regional Economics Maximum Net Fiscal Impact Scenario Summary of Revenue. The maximum net fiscal impact findings indicate that on an annual basis, the Project is estimated to generate $709,149 in gross revenue to the City of Ukiah General Fund. The largest General Fund revenue component is incremental retail sales tax estimated at $617,711 per year, which corresponds to retail sales taxes on all taxable Costco sales. This corresponds with the store's gross sales, irrespective of any potential impacts on existing Ukiah retailers. All other General Fund revenues are much lower, with business license fees totaling $38,620 comprising the next largest General Fund revenue source, followed by property taxes at $25,285, property tax in lieu of VLF revenues at $21,521, and yet other lesser revenues. There are likely to be yet additional General Fund revenues generated by the Project, but the most substantial revenue sources are reflected in the $709,149 estimate. In addition, the Project's City of Ukiah Measure S sales tax proceeds dedicated to a special Public Safety Fund based on total taxable sales are estimated at $308,856. Summary of Expenditures. The average cost General Fund expenditures estimated to be attributable to the Project under the maximum net fiscal impact scenario are the same as the minimum net fiscal impact scenario, or $57,447 annually. Net Fiscal lmpact Summary. The net result of the Project's gross fiscal impact at stabilized operations for the maximum net fiscal impact scenario is a projected $651,702 annual contribution to the City of Ukiah's General Fund. This represents an annual contribution net of estimated City costs to service the Project equivalent to an estimated 4.5% of the City's General Fund expenditures. Factoring in the Measure S sales tax proceeds, which are dedicated to a special Public Safety Fund, boosts the Project's total net revenue under the maximum net fiscal impact scenario to the City of Ukiah to $960,557, or approximately 6.6% of the City's General Fund expenditures. FISCAL IMPACT LIMITATIONS The foregoing fiscal impact analysis is intended to give a general sense of the net fiscal impact of the Ukiah Costco Project. The figures are not precise estimates and changes will occur if the revenue and expenditure factors or other assumptions are developed with more precision. Nonetheless, the findings suggest a strong likelihood that the Project will result in a significant net positive fiscal impact to the City's General Fund. However, some limitations to the analysis, listed below, may affect the degree of the Project's estimated net benefit and change the net fiscal impact balance. General Limitations • The analysis is benchmarked to estimated stabilized operations. The net impacts during the ramp up period to stabilized operations will vary from the stabilized operations estimate. It may take several years before the full stabilized impacts transpire. • The analysis may not be inclusive of all revenue and cost estimates. Major categories associated with ongoing revenues and costs are included, but there may be other less significant categories excluded from the analysis. Ukiah Costco Fiscal Impact Analysis 16 ALH Urban & Regional Economics One-time Revenues and Appropriations • The fiscal impact analysis does not include one-time fees that may be assessed by the City of Ukiah. These fees are typically assessed on a cost recovery basis and are thus excluded from the analysis. Other potential fees, such as impact fees, are also excluded as they too are designed to provide a nexus with the services provided. • Depending upon how construction contracts are structured, there may be the potential for the City of Ukiah to benefit from construction-related sales and use taxes associated with the construction effort. These revenues are excluded from the analysis but could comprise a strong source of one-time revenues. • Another one-time revenue that could benefit the City of Ukiah during the construction period includes retail sales tax revenues resulting from construction worker spending in Ukiah. Ongoing Revenue and Appropriation Factors • The analysis does not include any increase in valuation, such that would occur with the maximum 2% allowable increase pursuant to Proposition 13 or that would occur based upon increased valuation upon sale. • The analysis does not take into account long-term service cost inflation, which may or may not be greater than the estimated rate of inflation. • The Ukiah Costco Project may trigger the need for additional services not accounted for in this analysis. The costs associated with these services could be meaningful, and could reduce the estimated net positive annual impacts. The likelihood of such additional costs being high, however, is deemed to be low. In summary, the Ukiah Costco Project net fiscal impact findings estimated above may change as more information and factors are considered. The results, however, suggest a very strong likelihood that the Ukiah Costco Project will result in a significant net positive fiscal impact to the City's General Fund and the Public Safety Fund. Ukiah Costco Fiscal Impact Analysis 17 ALH Urban & Regional Economics ASSUMPTIONS AND GENERAL LIMITING CONDITIONS ALH Urban & Regional Economics has made extensive efforts to confirm the accuracy and timeliness of the information contained in this study. Such information was compiled from a variety of sources, including interviews with government officials, review of City and County documents, and other third parties deemed to be reliable. Although ALH Urban & Regional Economics believes all information in this study is correct, it does not warrant the accuracy of such information and assumes no responsibility for inaccuracies in the information by third parties. We have no responsibility to update this report for events and circumstances occurring after the date of this report. Further, no guarantee is made as to the possible effect on development of present or future federal, state or local legislation, including any regarding environmental or ecological matters. The accompanying projections and analyses are based on estimates and assumptions developed in connection with the study. In turn, these assumptions, and their relation to the projections, were developed using currently available economic data and other relevant information. It is the nature of forecasting, however, that some assumptions may not materialize, and unanticipated events and circumstances may occur. Therefore, actual results achieved during the projection period will likely vary from the projections, and some of the variations may be material to the conclusions of the analysis. Contractual obligations do not include access to or ownership transfer of any electronic data processing files, programs or models completed directly for or as by-products of this research effort, unless explicitly so agreed as part of the contract. APPENDIX A: EXHIBITS Exhibit 2 Ukiah Costco Project Description, Employment, and Service Population Estimates Employment Distribution by Estimated Planned Total Type of Employment(2) Stabilized FTE Service Land Use Sq. Ft. Employment(1) Full-time (3) Part-time (3) Employment(4) Population (5) Warehouse 148,000 175-200 50.0% 50.0% 152 76 average 187.5 Gas Station 20 pumps (6) inc. above inc. above Total 152 76 Sources: "Project Description, Ukiah Costco New Warehouse and Fuel Station, Ukiah, California,"January 24, 2011, David Babcock & Associates; Environmental Science Associates; Costco Wholesale Corporation; and ALH Urban & Regional Economics. Notes: (1) Employment estimates provided in the Costco New Warehouse and Fuel Station project description. The range provided is 175-200. For analytical purposes the average of 187.50 is used. (2) Costco indicates employment is anticipated to comprise 1/2 part-time employees and 1/2 full-time employees. (3) Costco indicates typical part-time employment at Costco comprises 25 hours weekly. (4)The calculation of FTE employment is as follows: FTE Employment= (187.5".5)+((187.5".5)*(25/40)) based upon the assumptions regarding average total employment, percent full-time and part-time, and the average hours worked by a part-time employee. Figure is rounded to the nearest whole number. (5)All employees are assumed to be equivalent to one-half a resident for City average service cost purposes. This is a standard fiscal impact analysis assumptions. Figure is rounded to the nearest whole number. (6)The store is anticipated to open with 16 pumps, expanding to 20 pumps upon stabilization. Projected gas sales are anticipated to remain constant, with the sales achieved with 16 pumps being redistributed among 20 pumps following the expansion. Exhibit 3 Ukiah Costco City of Ukiah Demographic,Employment,and Tax Characteristics Data Point Value Measurement Population and Employment Base,2012 estimates City of Ukiah Population(1) 15,960 annual City of Ukiah Employment(2) 6,520 annual Estimated Service Population(3) 19,220 annual City of Ukiah Tax Rates and Select Tax Revenues City of Ukiah General Fund Property Tax Rate(4) 9.38% of 1.0%of property value Sales Tax Rate(5) Basic Sales Tax Rate, General Fund 0.75% of taxable sales amount Sales Tax Rate, Returned via Triple Flip 0.25% of taxable sales amount Total Sales Tax Rate 1.00% of taxable sales amount Measure S Sales Tax -Public Safety(6) 0.5% of taxable sales amount Vehicle in Lieu of Property Tax Revenues (7) FY 2011-2012 Adopted $1,214,585 annual Assessed City of Ukiah Valuation, FY 2011/12(8) Secured Property $1,169,395,369 Unsecured Property $80,975,556 Business License Fee(9) General Merchandise Retail $0.35 annual per$1,000 in gross receipts General Merchandise Wholesale $0.30 annual per$1,000 in gross receipts Sources: State of California Department of Finance, Demographic Research Unit,State Census Data Center,"Table 2:E-5 City/County Population and Housing Estimates," 1/1/2012;State of California Employment Development Department, Labor Market Information, LMI by Geography, Cities and Census Designated Places, current month, May 2012; Mendocino County Auditor-Controller; State of California Board of Equalization,"2009-2010 Annual Report-Statistical Appendix Table,"Table 23A; "City of Ukiah 2011-2012 Adopted Budget,"page ES-19; Mendocino County Auditor-Controller, "Assessed Valuations by District 2011-12'; City of Ukiah Application for Business License; and ALH Urban&Regional Economics. See notes on next page Exhibit 3 Ukiah Costco City of Ukiah Demographic,Employment,and Tax Characteristics Notes: (1)Estimated City of Ukiah population for January 1, 2012 per the State of California Department of Finance. (2)The State of California Employment Development Department reports May 2012 employment in Ukiah as 6,520.This is the most recent data point available as of the preparation date of this analysis and appears consistent with annual average City employment trends. (3)The service population of 19,220 is equivalent to the residential population plus 1/2 the employment base(i.e., 15,960+(0.5� 6,520).This is a standard fiscal impact assumption. (4)The Costco property is located in a Redevelopment Project Area. However,with the recent demise of redevelopment in the State of California it is assumed that by the time the Project is developed there will no longer be property tax increment revenues and the City of Ukiah General Fund will receive its default share of property tax revenues absent redevelopment.ALH Urban& Regional Economics reached out to the Mendocino County Auditor-Controller to obtain the City of Ukiah's property tax rate for a representative property not in the City's Redevelopment Project Area. Based on information provided by the Auditor-Controller it appears that the City of Ukiah's share of the base County property tax is 9.38%.Therefore,this is the figure assumed in the (5)The City of Ukiah's effective sales tax rate is 1.0%.This comprises a basic rate of 0.75%with an additional 0.25%generated pursuant to the triple flip, i.e., sales taxes diverted temporarily by the State of California but returned via other fiscal means, i.e., through property tax payments.The State of California Board of Equalization reports Ukiah's sales tax rate as 1.0%. (6)The City of Ukiah has an additional 0.5%sales tax rate.This sales tax for Measure S is due to expire in September 2015 unless the electorate votes to extend the tax.The sales tax proceeds are dedicated to public safety expenses. (7)See"City of Ukiah 2011-2012 Adopted BudgeY'page ES-19. (8)Provided by the Mendocino County Auditor. See http://www.co.mendocino.ca.us/auditor/valuations.htm. (9)Reflects annual fee for businesses licensed in the City of Ukiah, not one-time administrative fees. Exhibit 4 Ukiah Costco Incremental Property Valuation and Annual Property Tax Property Valuation Pursuant to the Cost Approach(1) City of Ukiah,2012 Dollars Item Amount Ukiah Costco Project Property Valuation Land Acquisition(2) $2,337,212 Building and Gas Station Construction Costs(3) $11,470,936 Equipment(3) $4,600,000 On and off-site Improvement Costs(3) $5,536,083 Select Soft Costs(3) $2,698,600 Financing Fees and Interest(3) $300,000 Total $26,942,831 Existing Property Tax Revenues(4) $0 Property Tax(5) Tax Rate/ Taxing Entity Allocation Factor Amount(6) Ad Valorem (Mendocino County) 0.2413°/a $65,001 Emerg Svcs CDF 0.0017°/a $455 Road 0.0275°/a $7,410 Mendocino County Animal Control 0.0019°/a $520 Li b ra ry 0.0133°/a $3,575 Promotion 0.0017°/a $455 City of Ukiah 0.0938% $25,285 Educational Revenue Augmentation Funds (ERAF) 0.1578°/a $42,510 MCFC &WCID (Water Agency) 0.0012°/a $325 Russian River Cemetery 0.0075°/a $2,015 MCRRFC &WCID 0.0014% $390 Mendocino County Office of Education 0.0415°/a $11,180 Mendocino Community College 0.0647°/a $17,420 Ukiah Unified School District 0.3448°/a $92,886 Lost Mills (7) 0.0000% $2 Tota I 1.0000°/a $269,428 Sources: Costco Wholesale Corporation; RealQuest;City of Ukiah Special Projects Administrator; Mendocino County Auditor-Controller;and ALH Urban&Regional Economics. Notes: (1)The County Assessor will value the property for property tax purposes using three approaches to value: cost; income;and comparables. For the purpose of this analysis,ALH Economics prepared a cost approach based upon currently available information.The final value upon completion determined by the County Assessor will likely differ from this value. However, based upon information available at the present time,this value and approach are believed to present a reasonable proxy for analytical purposes. (2)Appraised value of the land, i.e., $3.50 per square foot. In Summer 2011 the Ukiah Redevelopment Agency transferred the property to the City of Ukiah.The analysis assumes the property will be acquired from the City for the appraised value. (3)All construction-related costs were provided by Costco. (4)The property is currently owned by the City of Ukiah Successor Agency for Dissolved Ukiah Redevelopment Agency.Accordingly,the property is tax exempt and no property tax revenues are being generated. (5)See Exhibit 3 for the City of Ukiah share of property taxes, estimated at 9.38%of the basic 1.0%collected by Mendocino County.The tax for the City of Ukiah is both gross and incremental taxes since there are no current property taxes being generated from the property in accordance with its public ownership.The percentage shares of property taxes distributed to taxing entities was provided by the Mendocino County Auditor-Controller for a representative tax rate area in the City of Ukiah.The actual distribution for the proposed Costco property may vary from these percentages, but the variances are not likely to be substantial. (6)Figures rounded to the nearst$10. (7)Lost Mills receives a very nominal percentage share of property taxes(i.e., .000008%). Exhibit 5 Ukiah Costco Property Tax in Lieu of VLF Estimates Project Stabilization Net New or Incremental Valuation Attributable to Ukiah Costco Development City of Ukiah, FY 2011-12 Dollars Category Value Assessed Value Change City of Ukiah Secured Property Assessed Valuation (1) $1,169,395,369 City of Ukiah Unsecured Property Assessed Valuation (1) $80,975,556 Total $1,250,370,925 Property Valuation Increment Attributable to Ukiah Costco Development (2) $26,942,831 Existing Property Valuation (3) ($4,787,945) Net Increment in Property Valuation $22,154,885 Total Projected PropertyValuation $1,272,525,810 Percent Increase in City of Ukiah Property Valuation 1.77% Attributable to Ukiah Costco Development VLF in Lieu Revenue FY 2011-2012 adopted (1) $1,214,585 City Increase (Annual) Percent Assessed Value 1.77% VLF In Lieu Revenue Attributable to Ukiah Costco Development(4) $21,521 Sources: Realquest; City of Ukiah; and ALH Urban & Regional Economics. Notes: (1) See Exhibit 3. (2) See Exhibit 4. (3)While the property is being sold to Costco at an appraised value of$3.50 per square foot, parcel- specific Assessor's data available through Realquest indicate the 12 parcels that comprise all or part of the property being sold to Costco were valued at$5,571,862 for tax year 2011. The value of the parcels is currently lower than this$5.6 million figure given the City's purchase of the parcels for less. However, the assessment roll does not appear to have been updated to reflect this new value, thus the assessed valuation on record and included in the City's total assessed valuation includes the higher $5.6 million figure. The 12 parcels total 17.85 acres, or 777,546 square feet. Pursuant to the 2011 assessment year value the assessed value is therefore equal to $7.17 per square foot. This per square foot value is applied to the 15.33 acres planned for the project site to derive a current assessed valuation of$4,787,945. (4)This is equivalent to the City's FY 2011-2012 adopted VLF In Lieu Revenue multiplied by the Project's estimated 1.77°/o increase in the City's assessed valuation. Exhibit 6 Ukiah Costco Estimated Costco Project Taxable Retail Sales-Maximum and Minimum(1) City of Ukiah,FY 2011-12 Dollars Estimated Costco Sales Maximum Net Taxable Minimum Sales to Maximum Market Area and Non-Taxable Net Taxable Total(2) Retail Customers(3) Taxable(4) Sales Impacts(5) Retail Sales (6) Retail Sales(7) Retail Category [A] [B=A*85%] [C] [D] [E=B+D] [F=E*%taxable] Motor Vehicle and Parts Dealers $3,867,732 $3,287,573 $3,287,573 $0 $3,287,573 $3,287,573 Home Furnishings and Appliance Stores $10,181,237 $8,654,051 $8,654,051 ($2,000,990) $6,653,061 $6,653,061 Building Materials and Garden Equip $1,933,866 $1,643,786 $1,643,786 $0 $1,643,786 $1,643,786 Food and Beverage Stores $56,309,633 $47,863,188 $14,358,956 ($31,408,782) $16,454,406 $4,936,322 Gasoline Stations(8) $13,616,693 $13,616,693 $13,616,693 ($8,112,325) $5,504,368 $5,504,368 Clothing and Clothing Accessories Stores $3,412,705 $2,900,799 $2,900,799 $0 $2,900,799 $2,900,799 General Merchandise Stores $9,669,331 $8,218,931 $8,218,931 $0 $8,218,931 $8,218,931 Food Services and Drinking Places $1,023,812 $870,240 $870,240 $0 $870,240 $870,240 Other Retail Group $13,741,826 $11,680,552 $8,220,091 ($5,182,895) $6,497,657 $5,595,191 $113,756,834 $98,735,813 $61,771,121 ($46,704,991) $52,030,822 $39,610,272 Sources:"Costco Wholesale Warehouse Urban Decay Analysis,"Prepared for Environmental Science Associates, Inc., Prepared by ALH Urban&Regional Economics, August,2012;and ALH Urban&Regional Economics. Notes: (1)The purpose of this analysis is to estimate the ProjecYs maximum taxable retail sales and minimum net new taxable sales to the City of Ukiah.The minimum estimate is achieved by treating the sales impacts as if they all occurred in Ukiah,which is not likely to occur given the wide geographic scope of the market area and the distribution of retailers throughout the market area. (2)See Exhibit 2 in"Costco Wholesale Warehouse Urban Decay Analysis,"August 2012.This comprises the Costco store's total estimated retail sales. (3)Pursuant to the"Costco Wholesale Warehouse Urban Decay Analysis,"August 2012, it is assumed that 15%of Costco sales are non-taxable wholesale sales.See the exception for gasoline sales cited in footnote 8. (4)These figures comprise the estimated taxable component of Costco's retail sales to consumers.As cited in"Costco Wholesale Warehouse Urban Decay Analysis,"August 2012,the following percentage of retail sales are assumed to be taxable:food and beverage stores,30%;and other retail,33%of 20.73%(i.e.,the estimated share of sales that are taxable drug store sales). In the urban decay study a portion of general merchandise retailer sales are also assumed to be non-taxable because a portion of sales comprise food sales. However,since the Costco sales were separately parsed into food sales for analytical purposes,the analysis assumes that the portion of Costco sales that compete with general merchandise stores does not include an allocation for non-taxable food products.See Exhibit B-1 in the"Costco Wholesale Warehouse Urban Decay Analysis," August 2012 for the resulting taxable sales estimates. (5)See Exhibit 17 in"Costco Wholesale Warehouse Urban Decay Analysis,"August 2012.This comprises the total estimated retail sales impacts of the planned Costco store, regardless of the location of the retailer experiencing the impact.To present the most conservative analysis possible,these are the impacts figures not inclusive of demand generated by new growth. (6)The figures in this column comprise the minimum net new retail sales to the market area pursuant to the maximum market area impacts presented in the preceding column. These sales are both taxable and nontaxable,generated by retail consumers.To ensure a highly conservative fiscal impact analysis,the analysis assumes that all of these sales are diverted from existing Ukiah retailers.This is a highly unlikely occurrence given the size of the market area and geographic range of anticipated Costco retail shoppers. However,this assumption is included to provide a minimum estimate of the ProjecYs net fiscal benefit to the City of Ukiah's General Fund.See net fiscal impact analysis in Exhibit 10. (7)See footnote(3)for total to taxable sales adjustments.These adjustments are applied to the net taxable and non-taxable retail sales in column D. (8)For the purpose of analysis,all gasoline sales are assumed to be taxable,with no portion of wholesale purchases allocated to gasoline.This figure corresponds to the portion of gas sales estimated to be the taxable basis,but excluding all applicable state,federal,and local taxes(which are typically included in the price at the pump). Exhibit 7 Ukiah Costco Select City of Ukiah General Fund Revenues-Business License Fees and Sales Taxes City of Ukiah,FY 2011-12 Dollars Business License Fees Fee Per $1,000 Gross Annual 8usiness Retail Component Annual Sales Receipts(1) License Fee Costco,General Merchandise Wholesale $110,344,129 (2) $0.35 $38,620 Maximum Local Sales Impact(3) ($46,704,991) (4) $0.35 ($16,347) Minimum Net Increment $22,274 Retail Sales Tax Parameters and Retail Sales, Inflation,and Tax Information Annual Revenue City of Ukiah General Fund Sales Tax Rate(5) 0.75% Triple Flip Sales Tax Rate Equivalent(5) 0.25% Effective Sales Tax Rate(5) 1.00% Measure S Sales Tax -Public Safety(5) 0.5% Minimum Sales Tax Estimate Minimum Net Taxable Retail Sales(6) $39,610,272 Minimum Net Retail Sales Tax $396,103 Additional Measure S Sales Tax Revenues $198,051 Maximum Sales Tax Estimate Maximum Net Taxable Retail Sales(7) $61,771,121 Maximum Net Retail Sales Tax $617,711 Additional Measure S Sales Tax Revenues $308,856 Sources:"Costco Wholesale Warehouse Urban Decay Analysis,"Prepared for Environmental Science Associates, Inc., Prepared by ALH Urban&Regional Economics,August,2012;and ALH Urban&Regional Economics. Notes: (1)See Exhibit 3 for the Business License Fee Schedule.The analysis conservatively assumes that on a worst case basis all diverted retail sales will comprise a loss to the Ukiah retail sales base and thus reduce the business license fee revenues. (2)See Exhibit 2 in the"Costco Wholesale Warehouse Urban Decay Analysis,"August 2012,for the stabilized sales estimate of$120.0 million. For the purpose of the business license fee determination,the fee per$1,000 gross receipts applies to all sales excepting alcohol and tobacco,since these are already separately taxed at the state level.Assuming that Costco's alcohol sales comprise 3°/o of total sales,the amount of sales subject to the gross receipts tax would be$116.4 (3)This reflects the estimated retail sales impact of the Costco store.This impact will be spread throughout the entire market area defined for the store in the"Costco Wholesale Warehouse Urban Decay Analysis,"August 2012,which includes all of Mendocino County and much of Lake County. In an effort to be highly conservative and not overstate the potential net business license fee that will accrue to the City of Ukiah,this analysis nets out 100%of the estimated sales diversion to result in a minimum net increment in annual business license fees. (4)See Exhibit 6. (5)See Exhibit 3. (6)This figure comprises the minimum net increment of taxable sales generated by the Costco store.As with the business license fee analysis,this analysis very conservatively assumes that all of the diverted sales estimated in the"Costco Wholesale Warehouse Urban Decay Analysis,"August 2012,will occur to the detriment of Ukiah retailers in order to result in the most conservative incremental retail sales tax estimate possible.See Exhibit 6 for the cited figure. (7)See Exhibit 3.This figure corresponds with the estimated taxable sales of the Costco store irrespective of any sales diversions from existing Ukiah retailers. Exhibit 8 Ukiah Costco Select City of Ukiah General Fund Revenues- Franchise Tax and Fees, Fines � Forfeitures City of Ukiah, FY 2011-12 Dollars Franchise Tax Parameters and Franchise Tax Revenues and Population Basis Data Annual Revenue City of Ukiah FY 2011/12 Franchise Tax Revenues (1) $1,467,619 City Service Population (2) 19,220 Franchise Tax Revenues Per Service Population (3) $76.36 Project Service Population (4) 76 Project Franchise Tax Revenues (5) $5,803 Fees, Fines & Forfeitures Parameters and Fees, Fines & Forfeitures Revenues and Population Basis Data Annual Revenue City of Ukiah FY 2011/12 Fee, Fines & Forfeitures (1) $52,662 City Service Population (2) 19,220 Fees, Fines & Forfeitures Revenues Per Service Population (6) $2.74 Project Service Population (4) 76 Project Fees, Fines & Forfeitures Tax Revenues (7) $208 Sources: "City of Ukiah Adopted Budget 2011-2012, page ES-18;" and ALH Urban & Regional Economics. Notes: (1)These revenues figures are from the City of Ukiah budget for FY 2011-2012. While not generated on a per employee basis, it is a typical fiscal impact analysis convention to estimate these revenues on a per service population basis as a revenue generation proxy. The figures exclude T.V. Cable Franchise Fees as these are typically more residential than business-related. (2) See Exhibit 3. (3) Franchise tax revenues calculated on a per service population basis, excluding T.V. Cable Franchise Fees. (4) See Exhibit 2. (5) Calculated by multiplying the Franchise Tax Revenues Per Service Population by the estimated Project service population. (6) Fees, Fines & ForFeitures tax revenues calculated on a per service population basis. (7) Calculated by multiplying the Fees, Fines & Forfeitures Revenues Per Service Population by the estimated Project service population. Exhibit 9 Ukiah Costco City of Ukiah General Fund Average Cost Expenditures FY 2011-2012 Adopted Budget Fiscal Impact Factors City of Ukiah Percent Allocable Expenditure per Expenditure Expenditure per City Department FY Budget Fixed(1) Expenditures(2) Population Factor(3) Service Population(4) per Resident(5) Employee(6) General Government $2,067,296 0% $2,067,296 Service Population $107.56 $107.56 $53.78 Public Works $930,891 0% $930,891 Service Population $48.43 $48.43 $24.22 CommunityServices $1,732,504 0% $1,732,504 ServicePopulation $90.14 $90.14 $45.07 Public Safety $8,197,456 0% $8,197,456 Service Population $426.51 $426.51 $213.25 Capital Maintenance(7) $1,600,000 (7) 0% $1,600,000 Service Population $83.25 $83.25 $41.62 Total $14,528,147 0% $14,528,147 $755.89 $755.89 $377.94 Sources:"City of Ukiah Adopted Budget 2011-2012,"pages ES-23 and ESD-24;City of Ukiah Public Works Director;and ALH Urban&Regional Economics. Notes: (1)Fiscal impact studies that examine municipal expenditures on an average cost basis,such as this analysis,often assume a portion of City expenditures are fixed and will not vary with a change in the population served.The resulting variable expenditures are then allocated across the relevant population served,which could include just residents, just employees,or the service population,which includes both residents and an allocation for employees. For the purpose of this analysis,all City expenditures are conservatively assumed to be variable. In this manner,the greatest possible expenditures will be allocated to the estimated service population generated by the Project for the categories anticipated to serve employees. (2)Comprises the share of the General Fund expenditures assumed to be allocable to the population served, i.e.,total expenditures less fixed expenditures. In this case,as all expenditures are assumed to be variable,the allocable expenditures are equal on a department by department basis to each departmenYs budget. (3)The analysis assumes all expenditures are spread across the resident and employment base i.e.,the service population.This will most likely result in maximum service cost estimates since it is unlikely given the infill nature of the Project and traditional business hours that the City of Ukiah will need to increase its service capacity to sufficiently service the Project. (4)Equal to allocable expenditures divided by the service population. (5)The expenditure per resident is equal to the expenditure per service population. (6)The expenditure per employee is equal to one half the expenditure per service population. (7) This is not a General Fund budget item.However,the City of Ukiah estimates that pursuant to the City's Pavement Management Program,an annual expenditure of$1.6 million is required to maintain City streets at the current level of maintenance.The City Public Works Director suggested this item should be annually allocated to the Costco project,as it is a cost relevant to the City's service population. Exhibit 10 Ukiah Costco Annual Net Fiscal Impact Analysis(1) City of Ukiah General Fund and Public Safety Fund FY 2011-12 Dollars Net Fiscal Impact General Fund Revenues and Expenditures Categories Minimum(2) Maximum(3) Revenues (4) Property Taxes(5) $25,285 $25,285 Property Tax in Lieu of VLF(6) $21,521 $21,521 Business License Fees(7) $22,274 $38,620 Retail Sales Taxes(8) $396,103 $617,711 Franchise Fees(9) $5,803 $5,803 Fines, Fees&Forfeitures(9) $208 $208 Sub-total $471,194 $709,149 Expenditures(10) General Government $8,175 $8,175 Public Works $3,681 $3,681 Community Services $6,851 $6,851 Public Safety $32,414 $32,414 Capital Maintenance $6,327 $6,327 Sub-total $57,447 $57,447 General Fund Net Impact All Revenues and Expenses(11) $413,747 $651,702 Additional Measure S Sales Tax Revenues to to Public Safety Fund(12) $198,051 $308,856 General Fund and Public Safety Fund Net Impact All Revenues and Expenses(13) $611,798 $960,557 Source:ALH Urban&Regional Economics. Notes: (1)Includes estimated General Fund revenues less estimated General Fund expenditures. (2)The minimum net fiscal impact corresponds with the maximum sales impact scenario presented in Exhibit 6.This scenario is highly conservative and assumes that all taxable sales diverted as a result of the Costco store occur in the City of Ukiah,thus reducing the City's taxable retail sales base.This is a highly conservative assumption because sales diversions will occur in other locations besides the City of Ukiah.Three revenue sources are varied for this analysis,including retail sales tax, business license fees(see variation in business fees in Exhibit 7),and Measure S sales tax. (3)The maximum net fiscal impact corresponds with the minimum sales impact scenario presented in Exhibit 6.This would comprise no taxable sales diversions from existing City of Ukiah retailers.This scenario corresponds to the net fiscal impact analysis of the Costco store absent consideration of any existing retailer impacts. (4)Includes the most substantial revenues anticipated to accrue to the City of Ukiah General Fund resulting from the ProjecYs stabilized operations.However,there may be yet additional revenues flowing to the General Fund pursuant to the ProjecYs operations. (5)See Exhibit 4. (6)See Exhibit 5. (7)See Exhibit 7. (8)See Exhibit 6 for the taxable retail sales and Exhibit 3 for the retail sales tax rate. (9)See Exhibit 8 for the per employee revenue figures and Exhibit 2 for the estimated number of Project employees. (10)The estimated service costs per employee were derived in Exhibit 9.These costs were multiplied by the estimated number of Project employees presented in Exhibit 2. (11)Comprises revenues less expenditures. (12)See Exhibit 6 for the taxable sales range and Exhibit 3 for the Measure S sales tax rate.As with the retail sales tax estimate,the taxable sales estimate varies pursuant to the estimated taxable sales diversions. (13)Includes the Measure S sales tax revenues. APPENDIX B: TRIPLE FLIP AND CITY SHARE OF SALES TAX INFORMATION I-idl.Cumpanies:AB�U7'HdL http:llwww.hdlGflrnpanies.�omlindex.aspx?page=2 AB�LTT HdL ���� Found�d in 1g$�, HdL w,as established ta rnaxirni�e lacal gavernmen�re�enues by providing a variety�f audits,analytical services and software praducts.We are dedicated ta heXping�ities,�ounties and special districts. Hinderliter, de Llamas&Assa�iates de�elaped Calif�rnia's f�rst camputeri�ed sales tax management pragram an�was respnnsible far securing Iegislation fihat allowed independent�erification of state allocati�ns. In i9g�,HdL Cvren&Cane was estatalished to pravide property and documentary transfer tax seivices. HdL Snftware was farrned in igg6 ta pr��+ide software systems far other�ity re�enues and t4link to nther HdL revenue trackiixg systems. HdL's systernatic and caardinated approach to re�enue mana�eme�t and ecanamic data ana].ysis is currendy b�ing utilized lay over�5�agencies in six states. Services include a vaxiety of audits,analytical seivi�es and software praducts. Audit and cansulting set�vices are a�ailahle for sales,use and transaction 'taxes,prope�rty taxes and business license fees. HdL also pravides a variety of enterprise sQftware prvicessing tools fvr husiness li�ensing, �ode enfor�ement, animai contral,building permits and tracking�illing of false alarms. � HdL'S HISTqRY HdL was founded in �g8�by Robert Hinderliter,a farmer finax�ce di.rectar and city administratvr of C�mmerce, Califarnia. Mr. Hinderliter develaped Califarnia's first�amputeri�ed sales tax management pmgram and secured the legislation that allQws independent verificativn vf the State Board aF Equaliaativn's all�catioxx of sales tax re�enues ta local�a�ernments. �n iy8�, Lloyd de Llamas purchased �a°�af the corporate stnck and the�ornpany became Hinderliter, de Llamas and AssQ�iates with a primary focus an sales tax analysis,allvcadan audits,and software. In 1g9�,a separate corporation composed of partners Paula Cone,Martin Caren,Robert Hinderliter, and Llayd de Ilamas was created to pravide property tax related sezvices, including alla�ation audits,frends anatysis,tax in�rement verificatian,tax allacation hond fiscal services, and related saftware produ�ts. in igg5, HdL Saftware LL�C was estab�ished with particapants Nancy Hicks, Rvhert Hinderliter, and Llayd �e Llamas in order to pravide easy-ta��tse,integraYed saftware applicatians for the pro�essing and tracking of re��n►�e related fr�nctions including business Iicens�.s,building�plan perm.Sts, animal licenses,false alarm billing and�ode enforcement violations. The three affiliates operate as a single, caordixa.ated unit pro�iding same 3fia agen�ies with a variety af integrated serviGes and safiware products. 1 of 1 71312�13 5:16 PM HdL Cornpanies:TRIPLE FLIP IIVFDRMATI�N http:llwww.hdlcompanies.comlindex.aspx?page=100 TRIPLE FLIP INFaRMATION In Mar�h 2ao�, Califarnia vaters appro�ed Propositian��,the Califarnia Econami�Recovery Bvxzd Act, which authariaed the issuance af up ta$i5 billivn in honds to close the State's budget defi�it. $1v.g billian nf these bands were issued in�ov4 and fihe remainder in 2�08. Ta guarantee band repayment, a dedicated re�en�e s�urce was required.The re�enue source pra�ided fvr under the CaLifornia Ecanomi�Reco�ery Bond Act is 11a of the sales and use taxes Ie�ied far local g��ernments under the Bradley-Burns Uniform Sales Tax law.The bonds are repaid fram the revenue received thraugh the shift of ths local portion of sales and use taxes plus transfers from the Budget Stahilization Account(SSA}which is a sp�cial resetve estahlished in the State's general,fund appraved by Propositian�S. The canfiscated lacal sales tax is reimbuxsed through a series�f re�enue swapping procedures.These ex�hanges are referred ta as the"triple flip".The trip�e flip will continue until the bands are retired.As af June 2aag,the Departrnen#of Finance estimates that to be Spring 2o1b. HDW THE TRIPLE FLIP W�RKS: Fiip �.a.25 of the one percent local sales and use taxes are s�iifted ta the State to guarantee the b�nds. Flip 2 Re�enue lost thraugh the shift is backfilled to local agencies with property tax revenue from the Caunty Edncatian Revenue Augmentatian F�nd[ERAF}. Flip 3 Any sh�rtfall in County ERAF inanies needed t�meet the mininrxurn funding requirement far s�hools is backfilled frvnn the State general fund. Na later fihan Septemher 1st�f ear,h year,the State Depax-tment af Finance is required to send a nptificatian to each County Audit�r spe�ifying the artaount of th�triple flip rezmbursement(bacl�ill payix�ent}due t�each jurisdictian in the county for the corrting fiscal year. ReimUursements are based upon the estirnated sales and use tax revenues alla�ated ta the jurisdictian in the prior fiscal year,plus an adj�stment based upon pr�jected statewide growth vr de�line. The triple£lip reimbursernents�ackfill payments)are disl�ursed from this Fund in the amount set by the Department vf Finan�e. L�cal jurisdictions re�eive disbursernents fram tYte Fund in twa instalTments,�a96 prior to the end of January, and�a%priar tQ the end of May. Some Auditars send the checl:s earlier where circurnstances a�lvw. Given that th�backfil�paymen#s are hased on esti�rrxates,there is a "true-up"adjustment each year.The "true-up"adjustmsnt is added ta�r deducted from the followin�year's backfill payment. Some caunties apply rooR�of the"true-up"amaunt to the January backfill payment and same c�unties appfy�v%of the � °t� ���raaz3 5;ib PM HdL Companies:TRIPLE FLIP INFORMATION http;llwww.hdlcompanies.comlindex.aspx?page=l�0 "true-up"payment to the.Tanuary payrr�ent and�v%tv the May payment. 'IYiple�lip Reports far 2v12-1�By County . ' 2 of 2 7/3/2013 5:16 Ph I • Statistical Appendix Tahles-Table 23A-Board af�qualization ht[p:llwww.bne.ca.ga�Jannualltahle23a.htm �h#tp:llwww,�a.Aavl} [li r�dex.htm] Bo�rd of Equa�iza�ion Annual Report -- 5tatisti�al Appe�ndix Tables Tahle 23A- Local Sales and Use Tax Rates fmpased hy Califarnia Cities July 1,201fl�Currenty :: P��{pdfl2Di�ltable23a_t0.pdf}� �xc�l tpdfl20�QIfa�Ge�3a_9a.xEsy �„iy �,zaas :: POF{pdf120�91table23a_09,pcif]: Excef[pdfl2Qfl91#able23a_D9.xlsj July i,2008 • PDF{pdf12a081tai�le�3a_QB.pdfj � Word (pdf12Q08Ita�1�23_4$.doc} � Ex�el[pdf1�008ltab�e�3a_0$.xEs) July 1,���T - P�]F{pdf1200TItabEe23_Q7.pdfj� Word{pdf12flfl71table�3_fl7.doc}� ExGel(pdfi2fl07lta�le23ab ��.xls} July 1,F006 �� Pi�F tpdfl2C]D"olfable23a_06.pdf} �VI1onCl{pdfl��D�lfable23a_�5.doc.) July 1,2005 �: pC7�{pdf120D51tabie23^a5.pdf} � Word tpdF12D051tap1e23_�5.doe} July 9,2DD4 :: PQF{pdf12a041tah{eZ3_04.pd� � Worcf(pdfl20041ta61e23_04.doc} July 1,2aa3 � PQF{pdf126Q31tabfe23 03.pdf}� Warc3[pdf1�Q031table23a_fl3.doc} July 1,20a� PQF{pdfl2a��ltable23_02.pdf] � Wat'cf�pdf120021tab1e23_02.dac} �ll�]I 7,ZUa1 �� PQF{pdf12a011tab1e23_D1.pd�}� llllord[pdfl2D091ta�1e23 09.do�} _. ...................__ —......... July 1,2000 1 ❑f 2 71312d I 3 5:09 PM R Sales and Use Taxes 7AF3L�23A—LflCAL SALES A1�4[]U5�TA?f RRTES IMPO5Eb 8Y CALiFflRIYIA CiT1�5 ON JtlLY 1,2090 City Cily C:nuioiv ralad [:ilies C:[Hirily ra![�" Ciliv:, ] 2 1 i 3 Aiatr��!da............... I.{�I} IJut�lir�lLwcnnc�rc:rSaro L�i;�ndrei Napa .. ............. l.11lY All citi�5 .a5 All vlher c�l�as Afevad� ................ I ilU All cities Rlpinn................. Nn inr,�rpnraferi r.ilies Qrangn.....----......, 1 i��l All r,itins Amador ....-------- I.Q[r A}I nities Placer ................. I.41] NI cities Bcittc= .....---•-......... �7i i:hir�u Plum:�:s.................. �17 f�c,r}ul:� I.U[} All�1her ci;ies kiv�rside ...._...... , I.ilfl Rlf citias i:aia�eras. ...... ��5 Auyci�s Ga�np SiACFAliIF3f1lU .......i I I}li A14 citu:ti Cawsa . . ..---.... I.r�r1 qii cii�es 5art Benita ......_..., 1.[fli A[!cilies Cnnira Cn.st:�.....,. I.[}�7 t):3kEny 5an Brrrri�rdiru� ....i 1,litl All r.iSi�s .�]7� A�1 other cities 5�n Diego ].Uil ,411 cilies Col Nnrte.............. l.i�t� (:rosca��l C:ily San Frar.ciscq ......i 1,�1s1 EI Q{]T]CU............. I,fl() AIF cipes San.]oaquin ....__..' l.uo All ciiies =r��s�iU ...,..... �s�17? F resru3 Sai,Lu�Ubispti.... 1.[I[I RI!s:iliGs WS 4'lvvi5lCaalinr�.alFrcet5auglilFawlerf Kprmanl San i�9ateo ........ �?5 Ap dties }CIR(JS�][1�C]I I��L+dIL}fIS:911f�C�NS[?IRlil 5rarH�3 9ar�ar7._.... .5« Gc�n�.� .yS� �3end�+tn I.qi} Ai!o4her Cities I.Illti A�I nlh�r c:iliin Sar�la C;Ir;[a........,.. l.iMl 1111 r.ilir�s Glenn .... I.11�} AVI cilies Sa�ita CrtEZ.......... I.fi;> All o�ties HurliUralcl! ..... I.III� illl ciiiia Sftd�t�................... 1.S}l} Ili1�iIics Imperidl .......... !.4« All e�ties Sierra ................. !?� Luyal[on Inyn..................•-•. I.[Y�} RishaE� Siskiyrni ................ l.i�n All ciiies Kern .................... l,11�1 All�ities Solanv. ..,.,.,,,,,,,. I.fHY All�ities Kin�s................... =�s H:�nlord Srsn{�rrv� .............. 1.If11 Ut+uxlsar .4� AA alhar cilibs .y75 AA olher eities �aku..................... i.11l] All clli��y Slar�isl�zu!: ..........' '.�5 C:r,rc�slMcxJcslc�lU�kdnlc�f I urlor.:k Lasser. ................ .s+� Sus�mille I ���1� Pailers�nlRryerbAnk I_cs An�r�ias ......... 1.usl AI1 cihus I I.flli R!I nlf�rnr c;il�ns tv]a�e�a................ �]? Chowch,ila Sut[er. 1.UD A!I ciiies ���3 tJl.3dc�ra Fnnama ............... �in Gominr;IHari Bluff ,Aann... .............. f.Dti7 All��lies 1.U[i Tehama Lfar�posa ............. Nu mcurp�ralud cili�s lrirnty..... ,.,,..... HU irircx�x�raE�J crii�s hler.doeina ..,,..... !_fx� All cili?s Tulara . .. ......... 9� All cili�s Mr+.r��d.............. !J?5 Mi±rr.crd Tiialurr�itU......._.... ti7 Suriora `71 �a58al1P5 V@fitUl�B . .......... i.[N! Qi,7i I.i1f} Aii nlh�r��lins '1t+7 l�f1 o�fuK ciEieS F�1c�doc I_[1U AElur�s Yo1[r ... , I.[� A11 cities hiclncf . ,,.... I.l1�Y Mdir{r�u�lli��ykE!i YuUa .................... I.[Ill Illl�fiic:s Manterey I.(Hr A11 cities c�. Eacl�city'S i�K Iale is rred�i9d ag,¢irnl lhe r�Emiy s ane perCenl lak �-.7�� ATTACHMENT 5A Pu bl ic Com ment durin g . FEI R Pre a rat � on p Kim Jordan From : Michael M <michaelzim52@hotmail .com> � Sent: Friday, October 11 , 2013 4:34 PM To: Kim Jordan Subject: Lighting Ref. - Costco Follow Up Flag: Follow up Flag Status: Flagged Attention Kim Jordan : Kim . . . Herewith just a reminder note regarding our conversation about potential lighting considerations for the new - Costco development due in at Airport Park next year. Living up above the valley fioor on the west side means we are very exposed to night lighting that is not directed downwards, or is reflecting up towards the hills (or night sky). A small light is astonishingly bright and much more "visible" than one would assume for the distances involved . It has to be seen to be believed . I had a friend down on Gielow Lane near River Road shine his LED flashlight at me one night and it was BRIGHT! That must be what. . .5 miles away or more from upper Oak Knoll Road where I liv.e ! ? Then I turned on my deck lights (four 60W floods) and he said it lit up my place on the mountain like a lighthouse. He was � likewise stunned at how bright it was (as my lights face the valley floor basically - and a reason I do not use them as I 'm sure it would be intrusive to someone). So it works two ways - up or down . Anyway, hopefully the Costco development is not going to offer such problems as it sounds like you in _ _ Planning, and they, are already aware of this and the " Dark Sky" initiative, etc. Thanks much . . . Michael Maltas 1575 Oak Knoll Road . Ukiah Tel . 467-9137 ' . 1 Kim Jordan From : Angela Taylor <angelpawswedding@yahoo.com> � Sent: Friday, May 10, 2013 4:46 PM To: Kim Jordan Subject: Costco Plan Follow Up Flag: Follow up Flag Status: Flagged To Whom It May Concern: I have been a resident of tJkiah since 1985 and I am very supportive of the proposed Costco Warehouse opening on Airport Park Boulevard, or anywhere in or neaz Ukiah. I feel that Costco would be a positive addition to the Mendocino County area. Too many residents travel to Sonoma County to spend their sho in __ _ P P g dollars, thus giving all the sales tax to a different county. Our emergency and other services that are paid for by sales tax income are greatly affected by this happeni.ng. Our local governments can be helped by having more shopping choices here. By being able to shop locally, less fuel is burned which is also a benifit for the environrrient. Costco is a ood em lo er who a -s a livable wa e witti beriefits and tlieir em � lo ees seem g P Y PY g � P Y quite happy to work there. Ukiah needs more jobs like this ! My medical insurance is also benificial if my family uses their phannancy, as my co-pay for generic perscriptions is zero. I would strongly urge the City of LTkiah to approve the addition of a local Costco ! Thank you, Angela Miller P. O. Box 57 Ukiah, CA 95482 707-463-2663 1 PEAI� ORCHA ASSO � IATES LLC P.O . Box 1028 LTkiall, CA 95482 April 23 , 2013 Michael Whetzel, Planning Coinmissioii - City of Ukiah � c/o City Clerk's Office - 300 Seminary Avenue � _ Ukiah, CA 95482 Dear Mr. Whetzel, As Ulciah propei-ty owners, we wonder if it's really fair to existing businesses in Ukiali to use city taxpayer money to subsidize a large international coiporation like Costco? We all expect com�etition but Ukiah businesses need a level playing field to compete. To subsidize Costco at taxpayers' expense and penalize existing businesses is not the Americari way. --- — --T-he_�ostco-traf�-c-co-ilgesti-o.ii�robl.em-has-n. ot beei�adequatel3�-a .ddresseci..W. -al.ma;�w�l�-- _ _______ . _ _ _ expand, and the added additional businesses will create greater traffic probleins. What's missing in the analysis is who will take the blame (or who's at fault) wheii the backup extends into the southbound lanes of US Highway 101 causing accidents : then the city taxpayers will pay again to try and find a solution. The only fair and reasonable approval is to require Costco (and others that will add to congestion) to fully fund traffic iinprovements that take into account Costco tra�c, Walmart's increased traffic and future traffic generated by other businesses that will be drawn to the area, Yours Truly � ' . . R. L. Garrison �������� APR � �9 2013 ���(���py� �119V 'J��o . ��. ���� ��� �� �� ►� � Q. ���� � ��� P.O . Box 1028 Ukiali, CA 95482 April 23 , 2013 Judy Piuden, Planning Commission - City of Ukiah c/o City Clerk`s Office 300 Seminary Avenue Ukiah, CA 95482 Dear Ms. Piuden, As Ukiah property owners, we wonder if it's really fair to existing businesses in Ukiali to use : city tax�ayer money to subsidize a large international coiporation like Costco? We all expect competition but Ukial� businesses need a level playing field to compete. To subsidize Costco at taxpayers' expeiZSe and perialize existing businesses is not the Americaii way. - ------ --T-I�e-Costco-tr-a.ff.cco.ngesti.o.n-�r�obl.eiia_.lias_no.t-been_adequatel_y_addi�essad._W_ _a1maL-t wi1L____ __ . _ __ —. _ expand, aiid the added additional businesses will create greater traffic problems . What's inissing iii the analysis is who will take the blame (or who's at fault) when the backup extends into the southbouiid lanes of US Highway 101 causing accidents : then the city taxpayers will pay again ' to try and find a solution. : The only fair and reasonable approval is to require Costco (and others that will add to congestion) to fully fund traffic improvements that take into account Costco traffic, Walmai-t's iiicreased traffic aiid future traffic generated by other businesses that will be drawn to the area . Youis Truly s I��CEiVE � ° AP� 2�9 2013 R. L. Garrison �� � 9�ViN� D� PEA1? ORCHA ASSOCIATE � I,LC P. O . Box 1028 Ukiah, CA 95482 Apri123 , 2013 Jason Brenner, Planning Coirunission � - City of Ukiah c/o City Clerk's Office 300 Seminary Avenue Ukiah, CA 95482 Dear Mr. Bremier, As Ukiah property owners, we wonder if it's really fair to existing businesses in Ukiah to use city taxpayer moiZey to subsidize a large international corporation like Costco? We all expect competition but Ukiali businesses need a level playing field to compete. To � subsidize Gostco at taxpayers' expense and penalize existing businesses is not the American way. - --------T-he-Castco- tr-affi.c-con.gest-i.on-.probl.em laas_no.�b.eeii�dequatel3!addr�essed�V_altnat-t_will__ .___. __ _. ____ _ _ __ expand, and the added additional businesses will create greater traffic probleins. What's missing in the analysis is who will take the blame (or who's at fault) when the backup extends into the southbound lanes of US Highway 1 O1 causing accidents : then the city taxpayers will pay again to try and find a solution. The only fair and reasonable approval is to require Costco (and others that will add to congestioii) to fully fund traffic improvements that take into account Costco traffic, Walmai-t's increased traffic and future traffic generated by other businesses that will be drawn to the area . Yours Truly ��� � RECEIi/E� R. L. Garrison APR 2�9 2013 crivo� u�w ruu�vnv� �E�r PE�.lZ O1ZCI3A ASSOCIATES LLC P.O . Box 1028 � Ukiali, CA 95482 April 23 , 2013 Linda Sanders, Pla�uiing Coinmission City of Ukiah c/o City Clerk's Of�ce 300 Seminary Avenue Ukiah, CA 95482 Dear Ms . Sanders, As Ukiah property owners, we wonder if it's really fair to existing businesses in Ukiah to use city taxpayer inoney to subsidize a large international coiporation like Costco? We all expect competition but Ukiah businesses need a level playing field to compete. To subsidize Costco at taxpayers' expense and penalize existing businesses is not the Ameiican way. --T-he-C-ostco-tra-ffie-eoilgestioil pr-oblem lia�not been-adequ-atel-y�ddi-essed.—W-alnlar-t will - -- ---- -- - --- - _ expand, and the added additional businesses will create greater traffic problems . What's missing in the analysis is who will take the blame (or wl�o's at fault) when tlie backup extends into the southbound lanes of US Highway 101 causing accidents : then the city taxpayers will pay again to try a�id find a solution. The only fair and reasonable approval is to require Costco (and others that will add to congestion) to fully fund traffic improvements that take into account Costco traffic, Walmart's iiicreased traffic aiid future traffic generated by other businesses that will be drawn to the area. Yours Tnzly ° RECEIV � o E� R. L. Garrison AP� 2 9 2013 ' �o� ur� �u�unv� u��r PEAI? ORCI3A ASSOC �r�'I'ES LLC P.O. Box 1028 Ukiali, CA 95482 April 23 , 2013 Kevin Doble, Planning Cominission - City of Ukiah � c/o City Glerk's Office 300 Seminary Avenue Ukiah, CA 95482 Dear Mr. Doble, . As Ukiah property owners, we wonder if it's really fair to existing businesses in Ukiah to use city taxpayer moriey to subsidize a large international coiporation like Costco? We all expect competition but Ukiah businesses need a level playing field to compete. To subsidize Costco at taxpayers' expense and penaliae existing businesses is not the American way. _ The_Costco. tr.a.ffic co.ngestio.n_problein. .lias not_been adequately addressed. Walmart will expand, and the added additional businesses will create greater traffic problems. What's missing iii the analysis is who will take the blame (or who's at fault) when the backup extends into the southbound la.nes of US Highway 101 causing accidents : tlien the city taxpayers will pay again to try and find a solution. The only fair and reasonable approval is to require Costco (and others that will add to congestion) to fully fund traffic improvements that take into account Costco traffic, Walmai-t's ' increased traffic and future traffic generated by other businesses that will be drawn to the area . Yours Truly ,l . a R. L. Garrison RECEfVE� AP� � 9 2013 cmr� u�Ft 'I�NNIN6 DE@T. 1 Attention : KIM JORDAN I am another voice to be heard and I do not want another BIG BOX STORE come to Ukiah ! And, I do not want Costco to come here . I ' m with so many others who thinks this is rediculous and added burden to the Airport Blvd complex ( mess ) . I was also against an expansion of Walmart . In fact I would have preferred that Walmart didri � t _ exist here at all ! We did nicely without it . It only brought in more people to our once small nice town. They wonder why the downtown is drying up, then they let these big box stores come in and take away from downtown business . What in the world is wrong with these super- visors and whoever else wants more big box stores? I VOTE NO ON COSTCO ! ! Sincerely, Barbara Beck RECEI'f,/�� MAR 1 � � 013 rw�u�� �o I`�� � ,��, �.�, �, f�kx,� . �� � � Kim Jordan From : Gail Zettel <zettel@pacific.net> � Sent: Tuesday, March 26, 201310:42 AM To: Kim Jordan . Subject: Costco . Follow Up Flag: Follow up Flag Status: Flagged As a responsible tax paying citizen, I support the improvements necessary to bring in Costco and if by supporting that other box stores then so be it. Here are the reasons I support a Costco: 1 . The revenue it will acquire from taxes to help pay for our growing community 2. T'hat it is a company with a reputable practice for supporting their workers with a decent wage and medical -- coverage (unlike Walm�.rt!) 3 . 1'hat the green savings it might reduce in our carbon print with no more trips to Santa Rosa 4. The employment opportunities it will provide with our growing populatiori and no currently limited employment opporhxnities ava.ilable . These are just some of the reasons I can think of, I'm sure �their aze lots more but when looked at with two columns for plus and minus. I see the benefits outweigh the negatives. I do realize the carbon emissions may not be reduced as people up north will make a journey to the store, but again, I'm hoping we can make vehicles more greener friendly and affordable in the near future. I don't however, support WALMART! But again, they do provide products that are affordable for our working class population, I just hope someday they will pay their employees a decent wage and medical coverage. 1"hank you for providing the opporiunity to express this through email. Respectfully, Gail Zettel ' �.�Ve,�, ���,�5' G�rna�;�" ►nczl. c ��� � � � Kim Jordan From : David Nieskoski <davenieskoski@gmail.com> � Sent: Thursday, March 21 , 201311 :35 AM To: Kim Jordan . Subject: costco Follow Up Flag: Follow up Flag Status: Flagged 3-21 - 13 hello, just registering a quick opinion re: Airport Park. i'm not opposed tp costco per se, but it should be done right, and a sensible slow appoach -- - to the future development of that area is called for. i live in talmage, so i'm always driving near Airport Blvd. - first change needed is 'swifching' 2lanes to turn left, instead of having 21anes go siraight on talmage rd. shouldn't really cost too much. second, new freeway entrance is needed further south to take pressure off the north end. also, a 'light' at the 4-way intersection where the new steakhouse is located. ' and last, re-pave Airport Blvd. it's been awful for a long time. thanks and good luck, dave nieskoski � .� l�a.ce� u �.�, �� G��-�-�v� � � . � �� � � , . r� . � ` '; � � � ` S � . . ; � :.��� , .0 �;r.,,., � ' � , � �� `�P{ '� �� � : f . . 4 � � . t � � . -. td '� � �.. r � � t � �� s �l:i�'t/.+. t � '� 1 nl . � -� �r � ' Y ' � re �y 5 qxfr y fr �fY �i y � � a � i �l ���Y �ti � . i t i Z ' ic�� n r � t ; I .y� :.. 1 _ i� � � � 1i 4 1 �1,� � t � lLj` �Y�'��� � � r r � � r�tx . �r � ? � t�°� � y � � S�t �f }t .� � ' yy ' Fa t � r �- 'F ; � '. L � S � � :rv �� 1�� t r '+ � � � 4 , d (� p.T i 1 v 1 �� �i t s. ♦ h l �< v( . la r� }}}� . J , t'�, S _ 'i} � x-. . 11hvs l ta 1�K .� ti �. �. ti 4 �3,�'t !� s � � ` � � (�h � r l 1 tii �(� � d ' * ' F�. } gt t � it :���.. (y'�3rv tt�?�tlrt s �tw�t��tr p < 51� S K �ytu, .�p��i� '4f f n:l F i V p}i �S r I��n{i � ,y V �1.ui j�y r�� Ay��;t,�`"i�h� . iS t7 4 ' � � , i t,M1S�� 5 6 kl�w ,j•{ � � i�'�t � {eA 4[,�� � 1. 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S �� d , { � y` i � � 5 h `. � t � r .}�+ � � x n . t j �{ . j . � I a 5k� ��i �' b vi dt 7 '-L . � F a } -.� ♦ S t hy i r + 4 . . f a..�r. � 1 J. ? � , � '� i � v #5 S nl ?f � �t� . � i 7 «t . i T, - fjf f 2{ i .� �. . lr r'4 � '� t I � � � � . . ' 11 �, v 1 f . ! F ) J .� k � } 1 � .l �� l 4t1 r . {, f � 1. � 1 l . 't I .. n� fi.,:'' . � F > +' � ' .� ; �..ta(; �. i.� �^ , F � 3 � ` , 4 � . Kim Jordan From: Sally Palacio <sallypalacio@hotmail. com> � Sent: Saturday, March 16, 2013 6:29 AM To: Kim Jordan Subject: Airport Park This big boxed area is very bicycle unfriendly. Interesting that Hastings Road to Airport Blvd has nice bike lanes, and though Airport Bivd itself has plenty of road-room to have bike lanes, they've not been added . The parking lots around these stores are treacherous for bikers. Parking lots could have bike lanes alongside the main car entrances to the lots and paralleling pedestrian cross-walks. All planning should include accommodating bicycies as well as pedestrians. ZeC. 2tU�C�' �� C �c� � w��� � � 3` � S' � b�j G� �j�� � l � Kim Jordan From : TERESA <teriwelis@pacific. net> � Sent: Saturday, March 16, 2013 1 : 56 PM To: Kim Jordan Subject: Fresh Air Follow Up Flag : Follow up Flag Status: Flagged Dear Kim, I want to implore you and those around you whose decisions will have a far reaching and permanent effect on this community, one of the most beautiful towns in Northern California and, frankly, one of the most beautiful places on earth (mountains, vineyards, orchards, fresh air, wide open spaces, bird song, etc. ) to NOT PERMIT -- the "installation" of yet another big box beast in our midst. If such plans are implemented, the blight of traffie congestion in and around Ukiah (not just Airport Park), freeway back up, noise, pollution, and the general mayhem that will take over the entire town of Ukiah throughout the week, 7 days a week, will be constant. WHAT A SHAME ! Certainly there must be a better alternative. Teresa Wells . �,eC. ¢ tV'o1h a��-d� Gl� � G�rn�n� �,�r--� 3 ` � S ��t � � d,.v, ' � � ATTACHMENT 5B Pu bl ic Com ment i n Res onse to p Public Notice Kim Jordan From : Darrell Martin <teammartin@att. net> Sent: Monday, November 11 , 2013 9:54 AM To: Kim Jordan Subject: Costco Project Follow Up Flag : Follow up Flag Status: Flagged An e-mail to show my support for the Costco project. Just like my parents I am looking forward to shopping there in 2014 as well... . Lucas W Martin i Kim Jordan From : Darrell Martin <teammartin@att. net> Sent: Monday, November 11 , 2013 9:53 AM To: Kim Jordan Subject: Costco Follow Up Flag : Follow up Flag Status : Flagged HI Kim, A quick e-mail to show our support for the Costco project... . . Looking forward to shopping there in 2014 Darrell & Lori Martin _ i Kim Jordan From : Darrell Martin <teammartin@att. net> Sent: Monday, November 11 , 2013 9:55 AM To: Kim Jordan Subject: Costco Project Follow Up Flag : Follow up Flag Status: Completed Hi Kim, This is Lori's mom, Liz Timko, I don 't own a computer, so i am using there 's to show my support for the new Costco . I can 't wait to shop there in 2014... . . Elizabeth G Timko 1 ' Kim Jordan From : Dave Hull <dhullins@yahoo.com > Sent: Thursday, October 31 , 2013 3:08 PM To: Kim Jordan Subject: Re: Costco Environmental Impact Report and Rezone Public Notice Follow Up Flag : Follow up Flag Status : Completed Kim, I will try to make it on the 21rst but I want you to know I support this project. Our community needs this in many ways. Although the argument I hear is it could hurt other businesses we are losing tremendous tax dollars to Sonoma county and it only makes sense to keep it here as well as provide our community with services they - - offer and go out of town to get currently. Thank you. Dave Hull Dave Hull Insurance Agency 376 East Gobbi St Ste A Ukiah, CA 95482 Ph : 707-462- 6506 Fx : 707-462- 6508 From : Kim Jordan <kiordan(c�cityofukiah .com > To: "Adam Drake (drakeae an.vahoo.com )" <drakeae�vahoo.com >; Albert Krauss <alkrauss3221 Ca�pacific. net>; Albrecht <albrecht al�.pacific. net>; Ali <rainchick96(a�yahoo.com >; Angela Taylor <anqelapawswedding@yahoo .com >; Arlene Shippey <ashippevCa�pacific. net>; Better Longcrier <8ailonctcrier(�comcast. net>; Bev Rae <imsum12(cilicloud .com >; Bill Daniel <danielsteel(a�saber. net>; Bonnie Veblen <bonnie(c�bonnieveblen .com >; 'Brian Korngay' <onequtta(�.pacific. net>; 'Catherine Woskow' <info catherinewoskow.com >; 'Chelsea Shuler' <ccshulerCa�vmail .com >; 'Dan Smith' <Dantsmithi@aol .com >; "'Dave Hull (dhullins(a�vahoo.com )"' <dhullins(c�vahoo.com >; 'Dave Smith' <qrizzleqritz(cD.gmail .com >; 'David Duong' < 168duonaCc�qmail .com >; 'David Nieskoski' <davenieskoskiCc�amai► .com >; 'Debra Thompson' <wseattledebCa�att. net>; 'Dennis Slota' <dennisndorina.pacific. net>; Dennis Smart <u2bsmart@yahoo.com >; Edward Mills <millschoq(c�qmail .com >; Gail Zettel <zettel(c�pacific. net>; Gregg Young <pvtepadirectorCa�pottervallevtribe.com >; Hegan <heqan an.sonic. net>; Helen Sizemore <helensizeCa�amail .com >; Henry Sadowski <UkiahCACu�tutorinqcenter.com >; "Holly W . Roberson (hrobersonCa�rmmenvirolaw.com )" <hroberson(a�rmmenvirolaw.com >; Jeffrey Blankfort <jblankfortCc�earthlink. net>; Jerry Wheeler <igwCa�huqhes . net> ; "If�willitsonline.com " <ifhCa�willitsonline.com >; 'Jim Slaught' <islaught(c�lee-associates.com >; 'Jim Sligh' <slick ,pacific. net>; 'Joan Giannecchini' <joangianCa�qmail .com >; 'Joan Vivaldo' <i2vivaldo@gmail .com >; 'Julie Allen' <sixinthefamilvCc.�me .�com >; 'Karen Rifkin' <karenrifkin(c�qmail .com >; 'Kathie Godec' <kqodeclandCa�saber. net>; k1m93@yahoo.com <Imk93na.vahoo .com >; kopperjd@omsoft.com <kopperid cC�.omsoft.com >; Lloyd Gregory <II_oydrov1960Ca�yahoo.com >; Marilyn Crayton <doodahlandqourdsna.hotmail .com >; Marlene Shupe <ukiahpaperCc�sbcqlobal . net>; Mary Anne Miller <ma-miller(a�msn .com > Cc: "Kevin Doble (kdobleCa�doblethomas .com )" <kdoble(a�doblethomas .com >; Laura Christensen ' <IauraemCa�sbcqlobal . net>; Linda Sanders <kaderli(a�iuno.com >; "Mike Whetzel (tmaviationCa�pacific. net)" <tmaviation(a�pacific. net>; "Pruden , Judy" <hortenseCa�pacific. net>; Alan Nicholson <alan c(�.anDesianStudio.com >; Howie Hawkes <howieCa�hawkesconstruction .com >; Nick Thayer <lateafternoon cni.sbcalobal . net>; Tom Hise <hiseaia(a�pacific. net>; Tom Liden <tomliden (c�pacific. net> Sent: Thursday, October 31 , 201312: 39 PM Subject: Costco Environmental Impact Report and Rezone Public Notice � Attached is the public notice for the Planning Commission public hearing on the Costco EIR and rezoning scheduled for Thursday November 21 st . The notice also includes a City Council public hearing notice in the event the Planning Commission makes a recommendation to the City Council on the EIR and rezoning at the November 21 st meeting. The EIR will be available tomorrow, November 1 st. Kim Jordan Senior Planner City of Ukiah Planning and Community Development Department 300 Seminary Avenue, Ukiah, CA 95482 (707) 463 -6207 (707) 463 -6204 fax website: www. cityofukiah.com<http ://www. cityofukiah. com/> 2 � j Coming � % � ; 101 cnico N Talmage Rd � Laytonville 99 wasM1ing[on Hastin sAVe 222 Ave A Mendocino Wabasn Ave n o o s Fort Bra 1111 6 99 National Forest ' � � SITE 5 = N v � co�usa 70 Beacon Ln UkcaM1 , 3 Muni 'pal W � Ukiah Williams Hi�port p Yuba City �aws nve � 128 N SITE A I R P O RT PA R K B O U L E VA R D CloverdalOe1 Clearlake Roseville � Healdsburg Woodland Pacific Ocean Calistoga 50 101 NORTH � � � � � �� ��� St Helena 80 SantaRosa 113 NORTH � Vacaville Dixon 5 VICINITY MAP APPLICATION FOR : REGIONAL MAP N.T.S. N.T.S. SITE DEVELOPMENT PERMIT REZONE PROJECT DATA N OV E M B E R 13 2 013 PROJECT AIRPORT PARK BOULEVARD 7 LOCATION: UKIAH, CA PROJ E CT D I R E CTO RY PARCEL NUMBERS: APN 180-110-08 180-080-62 , , " _ � �.,-� -�— y,,. _ � � - �. ,a��` , .'`�� - .� �. �-"", _t�. , ti�� � � � � 180-110-09 180-080-63 • , � ' ', } 3� � `� � � �, � ; .. � �- �- ' � ����� � �� I i 180-110-10 180-080-64 .� O °� � �_ � �� ��� � � ��� �� 'N '4` ° � �I � '. . r- �� � '� y� 1�' 1» -.. A� - ' � I '- .;yy ' v ' , ' �� � _ -, ;,.� �.- t. �� �*'-� �' �--�, - � 180-080-57 180-080-65 '+� ,� ' _ - �' , APPLICANT: „ +� - COSTCO WHOLESALE -: . , ;� 1 ' � ._� � � �� ,� �. s� . . ,s`� _�- `' 'tiv � � �._ __ +� 1. ;' � .._ ,� W .�.�_-y=_- _ - - - _ , � 180-080-58 180-080-66 � „ P.'r I � 9 CORPORATE PARK t < i ' ^�t. �„ � � -- - 180-080-59 180-080-67 , "u�, _.r, � - � � ' v �� • r � ; ; ' � _ . „ ^ �� ��r. , I `i � GENERAL PLAN SUITE 230 '-� : - , 1 ,.� ��� ' ,�r`� ,_ : ,, n,� " � . IRVINE, CA 92606 ;,,, r . ; , '� � E „� }� �. :'"- , „ : �7 ,'� �w° °` - "j DESIGNATION: • MASTER PLAN AREA �� �i d �� �'� � I�� 5 . � i � � .�`� .L� 1u,� � . � � V " PHONE: (714) 978-5023 . �`r ; �� ��, . �� � � z�, � ¢�_ � , �, ,�r : k ,'�p r } ' ° � �i-�,� �'�.u�sv�-- � � �. � l I, �� • - CONTACT: MICHAEL OKUMA . , _ � ra� � � � � , � _� � � � i � ' � � ���'� ��� �� e .-� - , j 'a,��� _ '� �;,'� 1 �i�7 �� �� R's ���'�s �� � _; . ,���� � � . - -�. �-���� �.—�'�, . - a,j „ � '� � i �� - CURRENT ZONING. PD-AIRPORT INDUSTRIAL PARK +► ' ; '. �� � x �1 t'. � i ���� � � ,�� `�` � �� � . ' � � � � � � T �� ._ aN i� ia� � _ , I � � i � '� � - , �' � � � � ��` . `�e . INDUSTRIAL / AUTOMOTIVE COMMERCIAL � f , -� �,. . , ,� ° - .� i f � �': �-_ i ; ' ` �f '��c , ' �'��� � � ti:� � .� = � � X ;' i � .�� ` . , � ..' . . , � Fa �. ... �, � , ' .��� , � '�.:�i�' , ,=_.. " ,. . ,i ., :., . .. ,. 1;��yi��. T ' - .� i • LIGHT MANUFACTURING / MIXED USE ARCHITECTS: +� ' ,i� ; ��, r . ��: ,� , ', �� � `,��'��`' x' � `� �:W, � � J_ .' ' T�' d'- � � �1 , r t\'� , � � �a� N�' DAVID BABCOCK & ASSOCIATES ° _ � ���-- � � �� , 9� � „�: � � 1 ��� , ��• ' � � �� �•� ,. � I � PROPOSED ZONING: PD - AIRPORT INDUSTRIAL PARK � ` � . a�. I 1_ �p� ,� �� � I,a `� sl i: � {. . }„I e 3581 MOUNT DIABLO BLVD., SUITE 235 - �6 , m' -, � �� � i ,�� e . :; � � `� '� ' � � I • RETAIL COMMERCIAL � � �,� , , , � ,, ;�, , � � � y �u!`l�. LAFAYETTE, CA. 94549 - :- <° ' � , ' �,���� , , ` �r �`�� 1�;- ' . � "' '� 101 ' ' � • LIGHT MANUFACTURING / MIXED USE PHONE: (925) 283-5070 , �� � '� ��,,� � � � . � s � ����, ;,� 1 �k�� �� � ,� � . �q � �;' � „ : � � :�<.� � � FAX: (925) 283-4823 ',�.� I "°°� _ '; � "��; ° ��, ' c`; ,�`4�� '�� , � ' �� �', . , � �` , ; " � �+ 7 JURISDICTION: CITY OF UKIAH, CALIFORNIA CONTACT: DAVID BABCOCK '� � ;� � , Fl, � _y�., � � , ,, ;.. .-�; ' � � • � 9 ' 51 R, �.1 y , r —�, _ � I � . �'!,� i��_ � } -� r ' , ♦ fi � � � �, BOUNDARIES THIS PLAN HAS BEEN PREPARED BY _ i , '�_��'� �°f ,,- �,`�� � ' ��, � � � �� � : , `� INFORMATION: USING SITE DATA INFORMATION FROM � �ai,� ,, � � t � � ��., ' i 5 A 'I .= o,,v�.E��'�, � i.. • i '. � . ... �-. ';� e't. ♦ �♦ ' .. � . . �� � � . - :.;, - .�•:, �. , t_�.,s_ :. � , `�;; s: . , r :�� � �- ' ,� °,,i � ' � KIER & WRIGHT DATED 12-23 09. , � �,. -. _ � . MULVANNY G2 ARCHITECTURE �I -' ` ,; � � �- ,; ` - ' a;<rl'��� . � " .�,. ,�` ' '. ' :.� �� .: ; _.- - �> i :', j i �'��' � - s. . 1110 112TH AVENUE NE ` _ - � ' � ��'�Z�� =r+. ; ; ``' �� � � 9 �t'��` � � `� �' � ` •� = S H E ET I N D EX SUITE 500 - 1_'�- �, � _ ' . _ � � 3 { �k� �t ��' . ��� , , � � �. p,� y . �' S � � , BELLEVUE, WA 98004 ~ '� - � � � �� � ��` � � ��' � � 'r �- , �, ��'' ����,�� � ' .a � i �` e ' `�' ;r � r � i� �y "�';^3 i:q � �� i i I ` TS TITLE SHEET . � . F �' � . � 11��A i . k � '�, ..�4� � � . Iq� � � • PHONE: (425) 463-1416 � , :. � �, _ FAX: (425) 463-2050 �^ ' — � 'ti � �` 1 �� { ��, ;m ��a` '� ` '�= � � '� ` '" 1 SUSTAINABLE PRACTICES ��.< i� i � � ; � �i , �� � CONTACT: JOSEPH WELCH - ° � ;�, ��R ' �� � � ,° , _� ,� �, i, i , I 2 EXISTING AERIAL & SITE PHOTOS .-i a�� � .0 qy � . � � ,�w� . + e l � I �� � 4 � ��. '► '... 1 ' p s � '�" .y, . .. s . . . • � ''� � _. I - ,,, � �� ;�� L �:� \ �; �. :. _ . , �� 3 EXISTING & PROPOSED ZONING EXHIBIT . � 4 `��� �. :�', � F�l' i'�� �Y �y} .iZ�� i �h , �l _ � 9't y� � .:�� � . d ". Mr�.+., � � �` ` �•.� � , ' � L� ` _ � � '{�� _,,�. .. , t .RI � )�'� / . CIVIL ENGINEER/SURVEY: ' ° s � * �� � � TS � " � : . . 4 CONCEPT SITE PLAN '� , ' � .. . -,�� KIER & WRIGHT , • ' ,' -_ :•, ,�; � � � ^ � _ __ - e 5 PEDESTRIAN SITE PLAN CIRCULATION 2850 COLLIER CANYON RD. R ^ ° ,r;i; - 'a n� � , , . , "'N ' f ti, � � • j . . '� � � i � ' ; �� '� ' ' 6 BICYCLE SITE PLAN CIRCULATION � LIVERMORE, CA 94551 . ' : � � I� � � �l I t .'; ; � ', i - �_ ,�/ � PHONE: (925) 245-8788 � �' °�' - - � ��1�'. y '" 't �' S ' _ � T 7 TRUCK ROUTE SITE PLAN CIRCULATION , , FAX: (925) 245-8796 � � ; ' , ` - �?,l.` ' 1 ,1 �� `' � ,� 8 CONCEPT FLOOR PLAN . • _ V �, , f- , >, u ,. =� CONTACT: STEVE CALCAGNO � ` ,, � -. ',� s_ � ;� '; F � ; '� -� :�' � � r , z 9 WAREHOUSE ELEVATIONS UKI � , �� - ' � AH, CA ' f ' �, .�,� 'j u . , ,,,�,3 � -��` � ,�, �'� �� ,; :�� , � = I � ., ' � " � '`� �, + ��' � `" �a 10 WAREHOUSE VIGNETTES �'� � � � � . - � ���: � ?=�. �� �� �, � `� �� � , ` ° F�' ' � � � � � � '�' �� 11 VISUAL SIMULATIONS LANDSCAPE ARCHITECT: � b � � , l , ' � ;:�a . '.,, � � � 9� �,� � ��� , � ` � DAVID BABCOCK & ASSOCIATES r �� ' - : , '�� � �,�\ � � `'Sr � � • �"� .� i 12 CONCEPT FUEL STATION PLAN & ELEVATIONS 3581 MT. DIABLO BLVD., SUITE 235 ��� � !1 �! _� �. '� .,i . - � A =' , �,-�.; �i�, ` , ' � � s , : $ ': 13 SIGHT LINE AND SECTIONS : � 1: , i3"v : . �y �c��' l�� � . t' �, r A' . , LAFAYETTE, CA. 94549 ' / _ ` � , � • � ��' 1� � ' ` ` , ' � -s� ` � ��' � �� �` `; . 14 SIGNAGE EXHIBIT PHONE: 925 283-5070 ' � � � � ) : ,'`, � � ' � �:, �_ '� - � o � . , �,- �' ' FAX: (925) 283-4823 � � � .'��`\ , „ 'a,�! � �` � "'�- _ � ,• �'� �.,� -� ° � , - 3 15 CONCEPT LANDSCAPE PLAN . : � - ; � , � � . = �, � . < � �,: � : CONTACT: DAVID BABCOCK �, � � 4 F � �u K _ �. � � � � � :�` � t� � } �:. �. �m � 16 SHADE PLAN � � _ s + `� ' ._.: t a. a � � . � ,[� , � � � �, � � ` � ' ` ` '� � � � � y',\�' 17 COMPARATIVE SHADE PLAN DAVDBABCOCK + Assoc�A,es ` ' - ' ^ �—i e �' r � l�E _�` ' � '� 3581I MT. DIABLO BLVD. ,SUITE 235 6 .: . ' � V � � ' :.—�r 1 � � .��� .� � � �. `� . � . /_ V .. LAFAYEffE.CALIFORNIA 94549 ��' ' � T' ' ° ` � � �` �y � "' "��� � 18 LANDSCAPE COVERAGE PLAN r:92s.2asso�o C1 TOPOGRAPHIC SURVEY C2 PRELIMINARY GRADING & DRAINAGE PLAN 0008.P.144 C3 PRELIMINARY UTILITY PLAN NOVEMBER 13, 2013 P PHOTOMETRIC PLAN TITLE SHEET �E TITLE SH EET Ts UKIAH , CALIFORNIA