HomeMy WebLinkAbout2014-11-05 PacketPage 1 of 3
CITY OF UKIAH
CITY COUNCIL AGENDA
Regular Meeting
CIVIC CENTER COUNCIL CHAMBERS
300 Seminary Avenue
Ukiah, CA 95482
November 5, 2014
6:00 p.m.
1. ROLL CALL
2. PLEDGE OF ALLEGIANCE
3. PROCLAMATIONS/INTRODUCTIONS/PRESENTATIONS
4. PETITIONS AND COMMUNICATIONS
5. APPROVAL OF MINUTES
a. Minutes of October 15, 2014, a Regular Meeting.
6. RIGHT TO APPEAL DECISION
Persons who are dissatisfied with a decision of the City Council may have the right to a review of that decision by a court.
The City has adopted Section 1094.6 of the California Code of Civil Procedure, which generally limits to ninety days (90)
the time within which the decision of the City Boards and Agencies may be judicially challenged.
7. CONSENT CALENDAR
The following items listed are considered routine and will be enacted by a single motion and roll call vote by the City
Council. Items may be removed from the Consent Calendar upon request of a Councilmember or a citizen in which event
the item will be considered at the completion of all other items on the agenda. The motion by the City Council on the
Consent Calendar will approve and make findings in accordance with Administrative Staff and/or Planning Commission
recommendations.
a. Approval of an Amendment to the Cooperative Agreement with Calfire for Fire Dispatching
Services and Authorize the City Manager to Sign Agreement without an Increase to the
Contract.
b. Award Professional Services Agreement to the Labor Compliance Managers for Labor
Compliance Services for Grace Hudson Project, Funded by Prop 84 Grant.
8. AUDIENCE COMMENTS ON NON-AGENDA ITEMS
The City Council welcomes input from the audience. If there is a matter of business on the agenda that you are interested in, you
may address the Council when this matter is considered. If you wish to speak on a matter that is not on this agenda, you may do
so at this time. In order for everyone to be heard, please limit your comments to three (3) minutes per person and not more than
ten (10) minutes per subject. The Brown Act regulations do not allow action to be taken on audience comments in which the
subject is not listed on the agenda.
9. COUNCIL REPORTS
10. CITY MANAGER/CITY CLERK REPORTS
Page 2 of 3
11. PUBLIC HEARINGS (6:15 PM)
a. Introduce Ordinance by Title Only Adding Chapter 10 to Division 5 of the Ukiah City Code
Entitled “Disposable Food Ware.”
b. Continuance of the Orrs Creek Homes Planned Development Amendment and Precise
Development Plan Project to December 3, 2014.
c. Conduct a Public Hearing to Receive Public Comment and Adopt a Resolution Approving
the Revised City of Ukiah Community Development Block Grant (CDBG) 2014 Single-Unit
Housing Rehabilitation Guidelines.
12. UNFINISHED BUSINESS
a. Discussion and Possible Adoption of Resolution of Application to the Mendocino Local
Agency Formation Commission to Detach from the Ukiah Valley Sanitation District the
Portion of the District Located in the City Limits.
b. Report from the Ad/Hoc Committee on Homeless Issues and Emergency Shelter and
Consideration of a Proposal to Fund a Winter Homeless Shelter and Corresponding Budget
Amendment.
13. NEW BUSINESS
a. Discussion and Consideration of an Award of Contract to Rau and Associates for Phase
One Engineering of the Public Infrastructure Improvements for the Perkins Street Depot
Property and Proposed Courthouse Site in the Amount of $26,420 and Approval of
Corresponding Budget Amendment.
14. CLOSED SESSION – Closed Session may be held at any time during the meeting
a. Conference with Legal Counsel – Pending Litigation
Initiation of litigation pursuant to Government Code Section 54956.9(c): (1 case)
b. Conference with Legal Counsel – Existing Litigation
(Government Code Section 54956.9(d)(1))
Name of case: Ukiah Valley Sanitation District v. City of Ukiah, Mendocino County Superior
Court Case No. SCUK-CVC-13-63024
c. Conference with Legal Counsel – Existing Litigation
(Government Code Section 54956.9(d)(1) and 54956.96(b))
Name of case: NCPA et al. v. United States, U.S. Court of Federal Claims no. 14-817C
d. Conference with Real Property Negotiators (§54956.8)
Property: APN 180-070-19
Negotiator: Jane Chambers, City Manager
Negotiating Parties: City of Ukiah and RCMC, LLC
Under Negotiation: Price & Terms
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e. Conference with Real Property Negotiators (§54956.8)
Property: APN 003-572-17-00 and 003-572-18-00 Negotiator: Jane Chambers, City
Manager
Negotiating Parties: City of Ukiah and Donna Mae Cooper
Under Negotiation: Price & Terms
f. Conference with Real Property Negotiators (§54956.8)
Property: APN 002-192-1400
Negotiator: Jane Chambers, City Manager
Negotiating Parties: City of Ukiah and Ukiah Valley Medical Center
Under Negotiation: Price & Terms
15. ADJOURNMENT
Please be advised that the City needs to be notified 72 hours in advance of a meeting if any specific
accommodations or interpreter services are needed in order for you to attend. The City complies with
ADA requirements and will attempt to reasonably accommodate individuals with disabilities upon request.
Materials related to an item on this Agenda submitted to the City Council after distribution of the agenda
packet are available for public inspection at the front counter at the Ukiah Civic Center, 300 Seminary
Avenue, Ukiah, CA 95482, during normal business hours, Monday through Friday, 8:00 am to 5:00 pm.
I hereby certify under penalty of perjury under the laws of the State of California that the foregoing agenda
was posted on the bulletin board at the main entrance of the City of Ukiah City Hall, located at 300
Seminary Avenue, Ukiah, California, not less than 72 hours prior to the meeting set forth on this agenda.
Dated this 31st day of October, 2014.
Kristine Lawler, City Clerk
Agenda Item 5a
Page 1 of 7
CITY OF UKIAH
CITY COUNCIL MINUTES
Regular Meeting
CIVIC CENTER COUNCIL CHAMBERS
300 Seminary Avenue
Ukiah, CA 95482
October 15, 2014
6:00 p.m.
1. ROLL CALL
Ukiah City Council met at a Regular Meeting on October 15, 2014, having been legally noticed on
October 10, 2014. Mayor Baldwin called the meeting to order at 6:04 p.m. Roll was taken with the
following Councilmembers Present: Steve Scalmanini, Douglas F. Crane, Benj Thomas, Vice
Mayor Mary Anne Landis, and Mayor Phil Baldwin. Staff Present: Jane Chambers, City Manager;
David Rapport, City Attorney; and Kristine Lawler, City Clerk.
2. PLEDGE OF ALLEGIANCE
3. PROCLAMATIONS/INTRODUCTIONS/PRESENTATIONS
a. Presentation: Scott Schneider of Visit Mendocino County giving an update on the
Business Improvement District (BID).
Presenter: Scott Schneider, Visit Mendocino County, Inc. President and CEO.
4. PETITIONS AND COMMUNICATIONS
Presenter: Vice Mayor Landis.
5. APPROVAL OF MINUTES
a. Minutes of October 1, 2014, Regular Meeting.
Motion/Second: Crane/Thomas to approve the minutes of October 1, 2014, a Regular Meeting as
submitted. Motion carried by the following roll call votes: AYES: Scalmanini, Crane, Thomas, and
Baldwin. NOES: None. ABSENT: None. ABSTAIN: Landis.
6. RIGHT TO APPEAL DECISION
7. CONSENT CALENDAR
a. Report of Disbursements for the Month of September, 2014 – Finance Department.
b. Authorize City Manager to Negotiate and Execute Lease Agreementat Airport with Northern
Sky RV – Airport. Pulled by Councilmember Scalmanini and placed as Agenda Item 13e.
c. Authorize City Manager to Negotiate and Execute Month to Month Lease Agreement at
Airport for a Vehicle Storage Yard Airport. Pulled by Councilmember Scalmanini and placed
as Agenda Item 13f.
d. Report on Rate Adjustments for Transfer Station and Garbage Collection Rates Effective
January 1, 2015 – Finance Department.
City Council Minutes for October 15, 2014, Continued: Page 2 of 7
Motion/Second: Landis/Thomas to approve Consent Calendar Items 7a and 7d as submitted.
Motion carried by the following roll call votes: AYES: Scalmanini, Crane, Thomas, Landis, and
Baldwin. NOES: None. ABSENT: None. ABSTAIN: None.
8. AUDIENCE COMMENTS ON NON-AGENDA ITEMS
Public Comment: Susan Baird, Health and Human Services Agency Advisor Board; Jim Lohr;
Marlene Shupe (remarks attached per Vice Mayor Landis’ offer to public regarding polystyrene
comments); Jim Brown; and Christoph Klinger.
9. COUNCIL REPORTS
Presenters: Vice Mayor Landis and Councilmembers Thomas and Crane.
Staff Comment: Sage Sangiacomo, Assistant City Manager.
10. CITY MANAGER/CITY CLERK REPORTS
Presenters: Jane Chambers City Manager; Rick Seanor, Deputy Public Works Director; and Sage
Sangiacomo, Assistant City Manager.
8. AUDIENCE COMMENTS ON NON-AGENDA ITEMS - Continued
Public Comment: Libby Guthrie and John McCowen.
11. PUBLIC HEARINGS
a. Consideration and Possible Adoption of a Resolution Ordering Repair of Dilapidated
Palace Hotel Structure, Retention of Cota Cole, LLP, and Setting Forth the Conditions
for the Initiation of Proceedings Under Health and Safety Code Section 17980.7 to
Establish a Receivership for the Palace Hotel Property.
Presenter: Charlie Stump, Planning and Community Development Director.
PUBLIC HEARING RECONVENED FROM SEPTEMBER 3, 2014, AT 7:01 P.M.
Public Comment: Norman Hudson, Contractor; John Curry; Maureen Mulheren; and John
McCowen (Speaking as a private citizen.)
PUBLIC HEARING ADJOURNED AT 7:35 P.M. (Public Hearing will be reconvened on November
19, 2014)
Motion/Second: Scalmanini/Thomas to continue to monitor the adopted Compliance Schedule
and continue to exercise direct oversight of the owner’s progress, to direct staff to bring an update
back on November 5, 2014, and to continue public hearing to November 19, 2014. Motion carried
by the following roll call votes: AYES: Scalmanini, Crane, Thomas, and Baldwin. NOES: Landis.
ABSENT: None. ABSTAIN: None.
b. Conduct Public Hearing and Review and Comment on the Draft Environmental
Impact Report for the Talmage Road/Southbound U.S. 101 On-Off Ramp Realignment
Project.
Presenters: Charlie Stump, Planning and Community Development Director and Leonard Charles,
Leonard Charles and Associates.
PUBLIC HEARING OPENED AT 8:11 P.M.
Public Comment: Jim Houle and Greg Hoyt.
City Council Minutes for October 15, 2014, Continued: Page 3 of 7
PUBLIC HEARING CLOSED AT 8:22 P.M.
RECESS: 8:23 – 8:30 P.M.
12. UNFINISHED BUSINESS
a. Approval of Appointment Recommendation by the City Council of the City of Ukiah to
the City Selection Committee for the Mendocino County Airport Land Use
Commission – Airport.
Presenter: Greg Owen, Airport Manager.
Motion/Second: Landis/Crane to approve appointment recommendation by the City Council of the
City of Ukiah to the City Selection Committee for Randy Beckler to be appointed to the open
position on the Mendocino County Airport Land Use Commission. Motion carried by the following
roll call votes: AYES: Scalmanini, Crane, Thomas, Landis, and Baldwin. NOES: None. ABSENT:
None. ABSTAIN: None.
13. NEW BUSINESS
a. Adoption of Resolution Making Appointments to Boards and Commissions for Term
Expirations and Vacancies Relative to the Airport Commission; Building Board of
Appeals; Parks, Recreation and Golf Commission; and Paths, Open Space and
Creeks Commission – City Clerk Department.
Presenter: Kristine Lawler, City Clerk.
Nomination by Councilmember Crane, seconded by Councilmember Thomas to appoint Randal S.
Beckler to the City Resident position on the Airport Commission. Motion carried by the following
roll call votes: AYES: Scalmanini, Crane, Thomas, Landis, and Baldwin. NOES: None. ABSENT:
None. ABSTAIN: None.
Nomination by Councilmember Scalmanini, seconded by Vice Mayor Landis to appoint Greg Hoyt
to the Member position on the Building Board of Appeals. Motion carried by the following roll call
votes: AYES: Scalmanini, Crane, Thomas, Landis, and Baldwin. NOES: None. ABSENT: None.
ABSTAIN: None.
Nomination by Councilmember Thomas, seconded by Councilmember Crane to appoint Henry T.
Sadowski to an At-Large position on the Parks, Recreation and Golf Commission. Motion carried
by the following roll call votes: AYES: Scalmanini, Crane, Thomas, Landis, and Baldwin. NOES:
None. ABSENT: None. ABSTAIN: None.
Nomination by Vice Mayor Landis, seconded by Councilmember Thomas to appoint Faye Hefte to
the Women’s Golf Club Member position on the Parks, Recreation and Golf Commission. Motion
carried by the following roll call votes: AYES: Scalmanini, Crane, Thomas, Landis, and Baldwin.
NOES: None. ABSENT: None. ABSTAIN: None.
Nomination by Councilmember Thomas, seconded by Vice Mayor Landis to appoint Dan W.
Holbrook to the City Resident position on the Paths, Open Space and Creeks Commission. Motion
carried by the following roll call votes: AYES: Scalmanini, Crane, Thomas, Landis, and Baldwin.
NOES: None. ABSENT: None. ABSTAIN: None.
Nomination by Vice Mayor Landis, seconded by Councilmember Crane to appoint David Grim to
the City Sphere of Influence position on the Paths, Open Space and Creeks Commission,
approving a city resident for this position. Motion carried by the following roll call votes: AYES:
Scalmanini, Crane, Thomas, Landis, and Baldwin. NOES: None. ABSENT: None. ABSTAIN: None.
City Council Minutes for October 15, 2014, Continued: Page 4 of 7
Motion/Second: Landis/Thomas to adopt a resolution (2014-40) making all appointments to the
Airport Commission; Building Board of Appeals; Parks, Recreation and Golf Commission; and the
Paths, Open Space and Creeks Commission. Motion carried by the following roll call votes: AYES:
Scalmanini, Crane, Thomas, Landis, and Baldwin. NOES: None. ABSENT: None. ABSTAIN: None.
b. Request by Leadership Mendocino for City Sponsorship of Class 2014-2015 –
Administration.
Presenters: Jane Chambers, City Manager and Heidi Dickerson, Leadership Mendocino Director.
Motion/Second: Crane/Landis to contribute $1,000 to Leadership Mendocino for programs and
class days for 2014-2015. Motion carried by the following roll call votes: AYES: Scalmanini, Crane,
Thomas, Landis, and Baldwin. NOES: None. ABSENT: None. ABSTAIN: None.
c. Target Setting for Electric Energy Storage Systems as per AB 2514, Consideration of
the Viability of Energy Storage for the Electric Utility and Adopt Resolution – Electric
Utility Department.
Presenter: Mel Grandi, Electric Utility Department Director.
Motion/Second: Crane/Landis to adopt a resolution (2014-41) regarding the viability of energy
storage for the City of Ukiah. Motion carried by the following roll call votes: AYES: Scalmanini,
Crane, Thomas, Landis, and Baldwin. NOES: None. ABSENT: None. ABSTAIN: None.
e. Authorize City Manager to Negotiate and Execute Lease Agreement at Airport with
Northern Sky RV – Airport – Pulled by Councilmember Scalmanini from Consent Calendar
Item 7b.
f. Authorize City Manager to Negotiate and Execute Month to Month Lease Agreement
at Airport for a Vehicle Storage Yard – Airport – Pulled by Councilmember Scalmanini
from Consent Calendar Item 7c.
Presenter: Greg Owen, Airport Director.
Motion/Second: Scalmanini/Landis to authorize City Manager to negotiate and execute lease
agreement (COU No. 1415-137) with Northern Sky RV, and to authorize City Manager to negotiate
and execute month to month lease agreement (COU No. 1415-138) for vehicle storage yard and
building. Motion carried by the following roll call votes: AYES: Scalmanini, Crane, Thomas, Landis
and Baldwin. NOES: None. ABSENT: None. ABSTAIN: None.
CITY COUNCIL ADJOURNED TO CLOSED SESSION AT 9:05 P.M.
d. Consideration and Possible Approval of MOU Among NCPA Members Re: NCPA V.
U.S. – Electric Utility Department.
Presenter: Mel Grandi, Electric Utility Department Director.
CITY COUNCIL RECONVENED IN OPEN SESSION AT 9:24 P.M.
Motion/Second: Crane/Landis to approve of MOU (COU No. 1415-139) among NCPA Members
and authorize the City Manager to execute all necessary documents. Motion carried by the
following roll call votes: AYES: Scalmanini, Crane, Thomas, Landis, and Baldwin. NOES: None.
ABSENT: None. ABSTAIN: None.
City Council Minutes for October 15, 2014, Continued: Page 5 of 7
14. CLOSED SESSION
a. Conference with Legal Counsel – Pending Litigation
Initiation of litigation pursuant to Government Code Section 54956.9(c): (1 case)
b. Conference with Legal Counsel – Existing Litigation
(Government Code Section 54956.9(d)(1))
Name of case: Ukiah Valley Sanitation District v. City of Ukiah, Mendocino County Superior
Court Case No. SCUK-CVC-13-63024
c. Conference with Legal Counsel – Existing Litigation
(Government Code Section 54956.9(d)(1) and 54956.96(b))
Name of case: NCPA et al. v. United States, U.S. Court of Federal Claims no. 14-817C
d. Conference with Real Property Negotiators (§54956.8)
Property: APN 180-070-19
Negotiator: Jane Chambers, City Manager
Negotiating Parties: City of Ukiah and RCMC, LLC
Under Negotiation: Price & Terms
e. Conference with Real Property Negotiators (§54956.8)
Property: APN 003-572-17-00 and 003-572-18-00 Negotiator: Jane Chambers, City
Manager
Negotiating Parties: City of Ukiah and Donna Mae Cooper
Under Negotiation: Price & Terms
f. Conference with Real Property Negotiators (§54956.8)
Property: APN 002-192-1400
Negotiator: Jane Chambers, City Manager
Negotiating Parties: City of Ukiah and Ukiah Valley Medical Center
Under Negotiation: Price & Terms
Council Action was taken on Closed Session agenda item 14c, which is shown above as the
agenda item 13d motion. No action was taken on remaining Closed Session items.
15. ADJOURNMENT
There being no further business, the meeting adjourned at 9:29 p.m.
________________________________
Kristine Lawler, City Clerk
City Council Minutes for October 15, 2014, Continued: Page 6 of 7
From Agenda Item 8:
Marlene Schupe (requested comments to be added to minutes per Vice Mayor Landis’ offer)
Can I ask a couple of questions first?
So you’re saying this is a non-agenda item, has this been continued to a different date?
(Council responds the 5th of November at 6 pm, with the public hearings happening after the first 15
minutes)
Ok, because I was told 6:15, ok, so I’ll give you that.
Ok, well in a way that’s a good thing because I have some literature for you guys, so this will give you an
opportunity to review what I’m giving you, and I only made six copies. So I guess I don’t have enough for
everybody, but anyway I will leave these with you.
As I have mentioned many times in the polystyrene debate, there’s two compact, excuse me a machine
that’s about the size of two freezers that will compact an 8 foot by 8 foot glob of polystyrene into about a
12 inch by 12 inch block. Which can then be sent to manufacturers and sold, in fact, for money.
Unfortunately, I was here during the garbage contracts discussions, and polystyrene was not put into
those contracts. So there’s nobody up here recycling polystyrene, but in the Bay Area they’ve been
recycling it for over 30 years and utilizing these machines.
To penalize the least of our community to the carelessness of a few is not forward thinking. And
Plowshares, Senior Meals on Wheels, local small delis, and local cafes are already struggling to survive.
Doubling or tripling their packaging costs could be their death now. I sell this product, all these products,
and I make more money on what you guys are suggesting what we go to. So I’m not doing this for Ukiah
Paper. You have to understand, I should be going “Yeah.” But I’m looking at the big picture. And the big
picture is that if these guys don’t survive, then all of us are going to suffer. Tax base is going to suffer, my
business is going to suffer. And all of us as tax payers and people who go out to lunch and dinner and
breakfast, are going to pay more for their product, because this is going to further inflation as well.
Part of my question is, do we really need to initiate this when we’re just coming out of the biggest
recession that probably any of us here has ever experienced. Should we regulate and shackle increased
cost to our local businesses at a critical time of our recovery.
I have given you some websites, some additional information which you may or may not have received on
some things that I’ve talked about before with the Board of Supervisors concerning polystyrene and also
the myth around paper verses polystyrene. Kind of in a nut shell, when you make paper you cut down a
tree. There’s no other way to get it. Current laws, so far as I know unless something’s changed in the last
few months, you cannot make any food packaging out of recycled products. It’s currently against the law;
for health reasons it makes sense. So you have to cut a virgin tree to make paper. You can use other
things to make paper, like sugar cane and we’ve discussed that, but the bulk of it is paper. Our landfills
are currently filled with 40% paper; before all of us go to paper bags, which we’ve discussed, and more
paper packaging. Our landfills are going to be overflowing, where polystyrene can be recycled. It can
be put in these machines, pop out little pellets, and recycled into things like Styrofoam to build houses.
They can’t be made back into food packaging, of course.
On the contrary, Styrofoam is actually made when you refine oil. There’s many things that’s made from
the goo that’s left over. One of them is plastics, one of them is polystyrene. So when you make
polystyrene, you’re basically making it from trash. That’s why it’s so cheap, because you don’t have to
take a natural resource and destroy it. It’s already garbage.
City Council Minutes for October 15, 2014, Continued: Page 7 of 7
(Mayor let’s speaker know that time is up, but she will have another opportunity)
But I want you guys to have this opportunity so that you can…
(Council decides to let her have additional time to speak)
I’m not going to go into all this because you guys can read it. Polystyrene in the past, you know some of
the bugaboos is that people were concerned because it had Chlorofluorocarbons in the process of making
it, that was discontinued well over 20 years ago. I give you resources and things so you know that I’m just
not saying this because I feel like saying this. I’ve actually quoted resources that you can check out,
conservatry (sic) and all sorts of people that have nothing to do with the paper business.
Anyway, like I said for Ukiah Paper, Yeah, we make more money, but really what I’m looking at is taking
care of our community, our businesses, keeping our tax base here, instead of shipping it to the big
corporations that don’t pay any taxes hardly at all here.
So I’ll leave these copies with you I take it? (gives copies to clerk for distribution) and I will see you next
month.
City of Ukiah Page 1
CDBG Single-Family Housing Rehabilitation Guidelines
CITY OF UKIAH
COMMUNITY DEVELOPMENT
BLOCK GRANT PROGRAM
(CDBG)
SINGLE-FAMILY
HOUSING REHABILITATION
PROGRAM GUIDELINES
April 2, 2014
Revised October 23, 2014
Attachment 1
City of Ukiah Page 2
CDBG Single-Family Housing Rehabilitation Guidelines
I. APPLICANT ELIGIBILITY
A. Conflict of Interest
No member of the Ukiah City Council, the Home Improvement Loan
Committee, or employee of the City of Ukiah during their tenure or for one
year thereafter shall have any interest, direct or indirect in any Home
Improvement Program loan contract or the proceeds thereof.
B. Income
1. Owner-Occupant
The maximum household income allowable to qualify for a Home
Improvement Program loan is eighty percent of the median income
(targeted income) for Mendocino County, as established by the
California Department of Housing and Community Development.
Eligible applicants will not have an annual gross income exceeding
the levels established for "low- and moderate-income (LMI)"
households adjusted by family size. The owner will be required to
provide income documentation.
Single-family housing rehabilitation program operator or City staff
will determine whether applicants satisfy the income eligibility
criteria.
Income limits will be updated within 30 days of receipt from the
California Department of Housing and Community Development.
All applicant information obtained by staff will be kept confidential.
C. PROPERTY
To be eligible for program financing, properties must comply with the
following criteria:
1. Location
Units to be rehabilitated under the Program must be located in the
incorporated areas of City of Ukiah excluding portions subject to
flooding. The City reserves the option of completing the “eight
step” process for areas subject to flooding, converting to exempt
City of Ukiah Page 3
CDBG Single-Family Housing Rehabilitation Guidelines
status, and including these areas at the discretion of the Certifying
Officer.
2. Occupancy
Although there is no minimum length of ownership requirement
under the program, an owner-occupant must reside in the unit
prior to the processing of a loan application, and the unit must be
the resident’s primary residence. However, if in the opinion of the
City Building Services Official, the unit as it exists is uninhabitable,
this requirement may be waived.
3. Title
Property owners shall hold land in fee title.
4. Condition
To qualify, the level of disrepair must include at least one major
system failure, such as roof, foundation, structural, plumbing,
heating, electrical or an accumulation of deficiencies that constitute
a threat to health and safety. All repair work will meet Uniform
Building Code standards. The priority will be the elimination of
health and safety hazards.
All property improvements must be physically attached to the
property and permanent in nature. General property improvements
should be limited to 15% of the rehabilitation loan amount. Luxury
items are not permitted.
Rehabilitation financing will be available to eligible property owners
only when a reasonable expenditure of funds will enable a
residential unit to be brought up to HUD Section 8 Housing Quality
Standards and Uniform Building Code standards.
5. Life Estate
Applicants meeting all other eligibility criteria who hold a Life Estate
on the property and reside on the property are eligible for a
rehabilitation loan. Income eligibility will be determined by the
income of the occupant/holder of the Life Estate. The holder of the
Fee Simple Estate will be required to sign all loan documents. The
loan conditions will provide that the loan is due and payable upon
City of Ukiah Page 4
CDBG Single-Family Housing Rehabilitation Guidelines
sale or transfer of the property and upon termination of the Life
Estate of the current occupant. (In making loans to Life Estate
holders City or program operator staff will regularly monitor such
loans to verify the status of the occupant).
7. Mobile/Manufactured Homes
CDBG funds may be used for the rehabilitation of a mobile home.
An alternative to actual rehabilitation of a mobile home is to replace
the unit with a used mobile home. To be considered eligible for
rehabilitation costs, the used mobile home must have been
occupied and not used as a demonstration model.
Should the residential dwelling or existing mobile home that is
being considered for rehabilitation meet the criteria for
reconstruction discussed below, a new mobile home can be used
for replacement. All costs associated with the purchase and
transportation can be added to the applicant's loan.
8. Reconstruction
Changes in federal law and policies allow the use of CDBG funds to
demolish and reconstruct LMI-owned and occupied residential
structures. Reconstruction is defined as the demolition and
construction of a structure. States may establish guidelines for
authorizing reconstruction, provided the guidelines are consistent
with federal standards.
Grantees must document that the reconstruction costs are less
than newly constructed housing and that the estimated cost of the
reconstructed housing (including demolition, site preparation and
temporary relocation) is less than the fair market value of the
reconstructed housing and land combined. This may be
accomplished by completing the Test for Reconstruction and
providing an appraisal or equal on the fair market value of the
newly reconstructed housing. A copy of the Test for
Reconstruction must be kept in the project files and be available for
review during the monitoring visit.
The residential structure to be reconstructed must be a structure or
unit within a structure with cooking, eating, sleeping, and sanitation
facilities which has been legally occupied as a residence within the
preceding 12 months.
City of Ukiah Page 5
CDBG Single-Family Housing Rehabilitation Guidelines
Reconstruction of a unit is categorically excluded from the National
Environmental Policy Act (NEPA, see Chapter 3) if the project is
four or fewer units per NEPA 58.35(a) (7).
Building plans for reconstruction should meet new construction
building and zoning standards for room size, setbacks, and off-
street parking areas.
II. REHABILITATION STANDARDS
A. General Requirements
Rehabilitation activity will consist of eligible improvements required to bring a
residential dwelling unit up to HUD Section 8 Housing Quality Standards and
Uniform Building Code Standards for decent, safe and sanitary housing. Any
rehabilitation work will comply with all pertinent standards of the various codes and
ordinances adopted by the City of Ukiah including current State standards for
residential energy conservation, the Uniform Housing Code and where applicable,
local codes and ordinances.
It shall be the responsibility of the Housing Rehabilitation Staff to determine the most
cost effective and appropriate manner in which to complete the needed repairs of a
dwelling.
The purpose of the Home Improvement Program is to assure a living unit, which
provides for a healthful environment and complete living facilities arranged and
equipped for suitable and desirable living conditions commensurate with the type
and quality of the property under consideration. To provide each living unit with
space necessary for suitable living, sleeping, cooking and dining accommodations,
as well as sanitary facilities:
1. Independent facilities shall be provided for each living unit except that
common facilities such as laundry and storage space or heating may be
provided for each property.
2. Each living unit shall contain provisions for each of the following:
(a) A continuing supply of safe potable water.
(b) Sanitary facilities and a safe method of sewage disposal.
(c) Heating adequate for healthful and comfortable living conditions.
(d) Domestic hot water.
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CDBG Single-Family Housing Rehabilitation Guidelines
(e) Electricity for lighting and for electrical uses in the dwelling.
3. Clothes closet space should be provided with bedrooms or located
conveniently nearby.
4. Exterior doors shall have keyed locks.
5. Attics and underfloor area shall have proper access and insulation as
required by local codes.
6. Every dwelling shall be supplied with a means of disposal or removal of trash
and garbage, which is inaccessible to rodents.
B. Access to the Building
Walks and steps shall be provided for all-weather access to the building and
constructed so as to provide safety and reasonable durability.
C. Grading
Any deficiencies in proper grading or paving adjacent to the building shall be
corrected to assure surface drainage away from foundations and basement
walls.
D. Unacceptable Features
Features which are not ordinarily acceptable in any property and must be
corrected where feasible are:
1. Buildings in which adequate attic and/or underfloor space ventilation has not
been provided to prevent conditions conducive to dampness, decay, fungi
and/or insect infestation and deterioration of the structure.
2. Buildings constructed on wood mudsills resting directly on the ground.
3. Crawl space vents with vent bottom less than 6 inches above the finish grade.
4. Foundations with top of stem wall less than 6 inches above finished grade.
5. Wood, siding, floors and/or door casings or sills in contact with ground.
6. Retaining walls shall be maintained in adequate repair and must be provided
where necessary to protect the structure, driveway and walls and to prevent
soil erosion.
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E. Structural Soundness
All structural components of the dwelling shall be in sound condition and
considered serviceable for the expected useful life of the rehabilitated building.
Sagging floors, fireplaces, partitions, stairs, and exterior walls shall be restored if
practicable to an acceptable level or plumb position, and supported or braced so
as to prevent a recurrence of these conditions. Stair railings shall be rigid.
Individual structural members in a seriously deteriorated condition shall be
replaced. Loose or damaged joints between structural members shall be
corrected.
F. Inspections and Correction
A careful inspection by qualified persons will be made of each building and
accessory structure on each property for evidence of actual or potential insect or
rodent infestation or access channels. Defects in existing buildings, which
permit the entrance of rodents, termites or other vermin will be corrected by
appropriate preventive measures. Damaged or deteriorated structural members
will be replaced. A number of preventive and protective measures against the
several forms of infestation are:
1. Window or other openings near grade are to have snug fitting screens.
2. Exterior doors are to fit tightly and be flashed or caulked at sill.
3. Opening for pipes or ducts through floors or walls are to have tight fitting
collars.
4. Cracks and crevices in foundations and aboveground walls may be effectively
sealed by pointing with mortar or other approved materials.
5. Cracked, broken or decayed wood surfaces shall be replaced.
6. Appropriate chemical treatment of soil adjacent to foundations and within
hollow masonry foundations and treatment of soil in enclosed spaces.
7. The Application of precautions or corrective actions recommended by
licensed professional exterminators.
G. Exterior and Interior Finishes
Exterior and interior finishes shall assure that the building finishes will be
adequate to: prevent the entrance or penetration of moisture and weather;
protect from damage by decay, corrosion, insects and other destructive
elements; provide reasonable durability and economy of maintenance.
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H. Exterior Appurtenances
All exterior appurtenances or accessory structures, which serve no useful
purpose, or those in a deteriorated condition which are not economically
repairable, may be removed. Such structures include porches, terraces,
entrance platforms, garages, carports, walls, fences and miscellaneous sheds.
I. Foundations
All masonry or concrete foundation walls will be improved to a safe, and sound
condition with the top of the wall not less than 6 inches above finish grade. All
wood foundation posts, sills, girders and plates showing signs of rot, decay,
infestation or structural failure shall be replaced with new suitable materials of
proper design where practicable.
J. Exterior Walls
Wood siding materials and trim that are broken, split or damaged so as to permit
the entrance of weather or that show signs of decay or insect infestation shall be
replaced. Where required, all existing wood surfaces shall be suitably prepared
for painting and shall receive at least one coat of prepared exterior house paint.
New wood siding materials shall be protected by appropriate finishes.
Composition sidings, including mineral surfaced fiberboard, mineral surfaced
asphalt siding, asbestos-cement types, etc., which show deterioration, damage
or joint failure so as to permit the entrance of weather or adversely affect the
appearance of the dwelling may be repaired, replaced or covered with new
suitable siding materials.1
K. Interior Walls and Ceilings
1. All loose and broken gypsum board shall be renailed or replaced, if possible,
and refinished. All loose and broken plaster shall be soundly patched and
repaired. Where its deterioration is so extensive that patching is impractical,
the entire wall or ceiling area shall be replastered or covered with acceptable
1Wherever deteriorated walls, ceilings, or other areas are suspected of containing asbestos
materials, precautionary protective measures will be taken to protect workers and residents from harmful
dust. These measures may include full abatement procedures as provided by trained personnel.
Dwellings which were built prior to 1978 and are occupied by children under the age of seven will be
evaluated to determine the existence of chipping or pealing lead-based paint. The occupants of all units
rehabilitated through the program will receive a Lead-Based Paint Warning advising parents of the
possible need to have children evaluated for possible lead poisoning. In incidents where lead-based
paint poisoning has been determined, or where problems are believed to be likely, HUD-approved
abatement procedures will be followed in cooperation with the local Health Department.
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drywall materials.2
2. All walls and ceilings shall be properly prepared and painted or shall receive
other appropriate finish.
3. Interior doors, jambs and interior trim, which show excessive deterioration,
abuse and patching shall be replaced. Existing and/or new interior millwork
shall be properly prepared and receive protective finish. All broken or missing
hardware shall be replaced.
L. Kitchen Fixtures
Countertop and backsplash shall be of approved durable and water-resistant
materials. Where required, a new sink and fittings properly connected to hot
and cold water supply and waste lines shall be installed.
M. Finished Floors
1. Bathrooms/toilet compartments and kitchen floors shall be provided with
approved underlayment, approved waterproof floor covering materials, and
appropriate base mould.
2. Floors in other areas of the living unit which show excessive wear, shrinkage,
cupping or other serious damage shall be, if possible, replaced or covered
with acceptable finish flooring materials properly installed. Sound wood floors
showing normal wear and discoloration may be refinished.3
3. Finish floors shall be appropriate to the use of the space, be in good
condition, and provide low maintenance service life.
N. Roof Drainage
Each dwelling will have a controlled method of disposal of water from roofs
where necessary to prevent damage to the building and property if possible.
O. Roof
All roofs and flashings shall be replaced or repaired to the extent necessary to
protect the building against leakage.
P. Gutters, Cornices and Exterior Details
Gutters, downspouts, eaves, rafter ends, fascias, soffits and cornices,
2/ Ibid
3/ Ibid.
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mouldings, trim, etc., showing evidence of leakage, rust, decay or deterioration
will be replaced with new materials suitably protected with paint or stain.
Repairs shall be made with any necessary changes of existing design or with
appropriate new design within reasonable limits to prevent recurrence of the
deterioration.
Q. Chimneys
Chimneys, brickwork or fireplaces showing signs of deterioration should be
repaired or replaced with appropriate materials if possible.
R. Windows, Doors, and Other Openings
Existing windows and doors, including their hardware, shall properly function
and give evidence of continuing acceptable service. Defective glass or locking
mechanisms shall be replaced or repaired. Windows and doors and their
frames which show signs of decay, deterioration, excessive warping, racking or
misalignment shall be replaced or repaired and adequately protected with paint
and flashings against further deterioration.
S. Electrical Wiring
When electrical services must be replaced, a 100-amp main service with a
minimum of 4 branch circuits is required. Additional branch circuits shall be
installed, as required, to service cooking ranges, clothes dryers, water heaters
and other major appliances. A minimum of one outlet and one permanently
installed overhead light fixtures or 2 outlets for each living room and each
bedroom is required. Every other habitable room shall have at least one outlet
and a source of natural or artificial light. An outlet may consist of one receptacle
or two and must be permanently installed. Permanent light fixtures with wall-
mount switches are required in kitchen and bath.
T. Plumbing
All plumbing fixtures shall be appropriately connected to approved drain, waste,
vent, and supply lines. All leaking, deteriorated or clogged piping shall be
replaced or restored to a condition which will provide safe and adequate service
for the plumbing fixtures or equipment to which they are connected.
U. Heating and Ventilation
No unvented fuel-burning heater shall be permitted. All heating devices and
appliances shall be of an approved type. Each living unit shall have properly
vented domestic water heating equipment capable of adequately supplying hot
water, as defined in U.P.C., with properly sized safety devices in place.
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V. Porches, Walks and Steps
All unsafe or unsound porches and steps will be removed or replaced and
protected from deterioration with paint or other acceptable finish. Where
required, approved handrails and guardrails shall be provided.
W. Fences and Gates
Dilapidated wood fencing which poses a health or safety hazard should be
replaced. Wood fences which have missing pickets, boards, panels or which
lean may have missing parts replaced with suitable materials. Sagging gates
may be braced and those dragging on the ground may be rehung.
X. Landscaping
Brush which poses a fire hazard shall be removed. Trees that are undermining
the structural integrity of the dwelling will be safety-pruned. All debris, lumber
and trash shall be removed.
Y. Painting and Decorating
Where necessary, a protective and decorative finish coating shall provide:
adequate resistance to weathering, protection of finished surfaces from moisture
or corrosion, an attractive appearance, and reasonable durability. Where
painted surfaces are in a well-maintained condition and not disturbed by the
rehabilitation work, painting and decorating is not required.
Z. Expansion of Dwelling
Rehabilitation assistance may provide for the expansion of kitchen and
bathroom facilities. An existing bedroom may be enlarged or an additional
bedroom may be provided where it has been determined that a family is living in
an overcrowded condition as defined by the Bureau of Census. For the purpose
of adding a second bathroom, overcrowding is defined as five or more persons
sharing the same home.
AA. Kitchen Equipment
Rehabilitation assistance may provide for the repair or purchase of a kitchen
range and/or refrigerator if missing or unsafe.
BB. Energy Conservation Measures
Rehabilitation loans may be used to reduce energy consumption through the
installation of:
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1. Dual glazing
2. Storm windows
3. Attic, floor, and wall insulation
4. Water heater blankets and timers
5. Hot water pipe insulation
6. Caulking and weatherstripping of doors and windows
7. Replacement of inefficient woodstoves or furnaces (including flues
and heat shields).
8. Duct testing and sealing for existing HVAC systems
9. Water conserving showerheads and faucet aerators
10. Hardwired energy efficient light fixtures and CFL’s
CC.Incipient Violations
Rehabilitation assistance may be used for rehabilitation work necessary to
correct incipient, as well as actual violations of Housing Quality Standards. An
incipient violation exists if it is thought that the physical condition of an element
in the structure will deteriorate into an actual violation in the near future.
DD.Building Permits and Related Fees
Rehabilitation assistance may provide funds to cover the cost of building permits
and related fees that are required to carry out the proposed rehabilitation work
when such fees are not waived.
EE.Ineligible Costs
Except as provided for herein, a rehabilitation loan shall not be used for:
1. New construction, substantial reconstruction, expansion of the structure, or
the finishing of unfinished spaces (except in documented overcrowded
conditions).
2. Luxury items, materials, fixtures, equipment or landscaping of a type or
quality which exceeds that customarily used in the locality for properties of the
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same general type and value as the property to be rehabilitated (General
Property Improvements).
3. Appliances not required by Section 8 Housing Quality Standards (Energy
Star rated appliances may replace any existing appliances in poor condition).
4. Acquisition of land.
5. Penalty building permit fees.
FF. Sewer Lateral Replacement/Repair Grant Program
In certain cases, CDBG funds may be made available to income-eligible residents solely to provide repairs
or replacements of sewer laterals. This activity is considered to be housing rehabilitation and, although
similar in many ways to standard housing rehabilitations, have a number of differences. Sewer lateral
repair and/or replacement is subject to the following:
a. The applicant must be eligible and qualified under the City’s housing rehabilitation program guidelines.
b. Funds provided for sewer lateral replacement and/or repair to single family units are grants and do not
require repayment. The applicant must qualify under one of the three situations in Section III.4.
c. Applicants are selected on the basis of "first come, first ready" until funds are exhausted.
d. Sewer lateral projects generally do not undertake repairs to the interior of housing units unless such
repairs are absolutely necessary for a code-compliant sewer lateral.
III. TYPES OF FINANCING AND TERMS
A. Owner-Occupants
1. Maximum Loan Amount
An eligible owner may qualify for the full cost of the rehabilitation work needed to
comply with Section 8 Housing Quality Standards and Uniform Building Code.
Maximum assistance with funds is $100,000. Total indebtedness against
property will not exceed 100 percent of after-rehabilitation value. Rehabilitation
costs for jobs may be supplemented with personal financing or with other loan or
grant programs.
2. Deferred Payment Loans (DPLs)
A DPL is a zero to four percent (0-4%) interest loan secured by a deed of trust
with no payback required until the borrower sells or transfers title or discontinues
residence in the dwelling. When specific circumstances occur, the DPL
becomes immediately due and payable. Payments may be made voluntarily on
a DPL.
3. Below Market Interest Rate (BMIR) Loans
Amortized loans secured by a deed of trust will bear a fixed simple interest rate
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of 0-4% per annum on the unpaid principal balance, depending on the income of
the borrower, and eligible housing and/or other expenses. Whenever possible
loans will be amortized. The term of all amortized loans will be for 15 years
unless a longer period is deemed necessary to protect the integrity of the loan.
There will be no prepayment penalty.
4. Determining Eligibility
Owner-occupants with incomes below 50% of the median income for Mendocino
County adjusted for family size are eligible for Deferred Payment Loans. On a
case-by-case basis other hardship expenses such as medical costs and housing
expenses in excess of 30% of the household’s gross monthly income may be
considered in determining the need for a DPL. Owner-occupants with incomes
between 50% and 80% of the County median income, adjusted for family size
will be eligible for BMIR loans.
A limited number of $10,000 grants are available for any of the following three
situations:
1. For very low-income (gross annual income less than 50 percent of Mendocino
County median income) elderly persons - at least 55 years of age.
2. For persons with disabilities–grants for removal of architectural barriers to
ADA accessibility to a house with one or more disabled occupants.
3. Lowest Targeted Income Group - with gross annual income less than 50
percent of county median income.
For the above situations, costs for documents (preliminary title report, appraisal,
etc.) required of the applicant to meet program qualification requirements may
be included in the grant so as not to cause undue financial hardship. The Loan
Committee will determine if the grant should include these costs.
The Loan Committee may adjust the interest rate from 4% to 0% to assure
affordability. Affordability is based on 30% of gross income applied to housing
costs. Housing costs include mortgage payments on the subject property, the
housing rehabilitation loan payment, real estate taxes and insurance on the
subject property. Applicants who have housing costs in excess of this 30%
figure may qualify for a deferred or partially deferred loan.
5. Reconstruction Policy
The reconstruction of existing low-income owner occupied single family
residential structures may be authorized with prior State and Federal approval.
Procedures shall be consistent with applicable State and Federal guidelines.
Reconstruction financed with loan funds shall, with Loan Committee approval,
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be subject to the per unit maximum of HOME subsidy limits based on number of
bedrooms.
B. Security
Property to be rehabilitated shall act as security for the loan. All loans shall be
secured by a Promissory Note and Deed of Trust, which shall be recorded.
A junior deed of trust may be approved as security for a loan. Total liens of record
against the property may not exceed 90% of the after rehabilitation value as
determined by the Loan Committee based upon the estimate provided by Housing
Rehabilitation staff.
C. Transfer of Title
All loans become immediately repayable in full when there is any transfer of title to
the property, other than to a surviving spouse. City staff may permit the same or
revised terms if income criteria are met by the new property owner.
IV. OCCUPANCY REQUIREMENTS
A. Owner-Occupants
1. Owner occupants will be required to submit to the City between January 1 and 15
of each year for the term of the loan:
Proof of occupancy in the form of a copy of a current utility bill.
Statement of unit's continued use as a residence.
Declaration that other title holders do not reside on the premises.
Proof of property (hazard) insurance, showing City of Ukiah listed as loss
payee.
2. In the event that an owner-occupant sells, transfers title, or discontinues
residence in the rehabilitated property for any reason, the loan is due and
payable.
(a) If, however, the owner-occupant who qualifies for financing dies,
and if the heir to the property lives in the house and is income-
eligible, the heir may be permitted, upon approval of the City to
assume the loan at the rate and terms he or she qualifies for under
current participation guidelines.
(b) If the owner-occupant who qualifies for financing dies and the heir
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is not income-eligible, the loan is due and payable.
3. If an owner wants to convert the rehabilitated property to any commercial
or non-residential use, the loan is due and payable.
V. OWNER PARTICIPATION OR SELF HELP LOANS
The purpose of the Home Improvement Program is to improve the housing conditions of
low-income residents. Three important considerations in achieving this purpose are:
1) the work should be done in a timely manner
2) the work should meet certain basic standards of quality
3) work must comply with the rehabilitation standard established by the Program
(Section 8 Housing Quality Standards and Uniform Building Code).
In situations where a home owner is also a construction contractor or can provide
references establishing a history of working in residential construction, the property owner
may complete some or all of the tasks required to rehabilitate his/her property if he/she
has the degree of skill required to perform the work involved. Self-help is usually
appropriate for the accomplishment of tasks of an unskilled nature such as general clean
up, demolition of small buildings, removal and disposal of debris, or for work which
involves minimum use of costly materials and equipment, such as exterior and interior
painting. Work of a skilled nature is appropriate only if the owner has a license to perform
such tasks.
Owners who participate in the Home Improvement Program on the basis of performing
some or all of the work themselves, which is known as providing “owner participation” or
“self-help,” will be expected to comply with the guidelines outlined below.
1. Evaluation. An evaluation must be performed by the Housing Rehabilitation Specialist
to determine the applicant’s suitability for owner participation. The option to allow
owners to do the work themselves may be provided at the sole discretion of the
Housing Rehabilitation Staff.
2. Work Schedule. Borrowers approved to provide owner participation will be required to
submit a detailed work schedule in accordance with deadlines established by the
program. This work schedule must include the following:
a. A complete list of materials, which will be required for the project.
b. A precise cost estimate of materials to be purchased. This estimate must
be based on actual costs.
c. A detailed list (company names, addresses, and telephone numbers) of
places where materials are to be purchased.
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d. A specific list of individuals (contractors, subcontractors or laborers) who
will be needed to assist the owner in completing the project. This list shall
include contractors’ license numbers, addresses, telephone numbers, and
specific amounts to be paid.
Owners are reminded that it is against program policy for any owner
or member of the owner’s immediate family to receive payment,
either directly or indirectly, for housing rehabilitation work.
e. A detailed time schedule showing the dates when work will be started,
when work will be done on each task, and when all work will be
completed.
3. Permits. It is the responsibility of the homeowner to contact the appropriate
governmental offices to determine whether building permits or other permits will
be required. Failure to do this may result in loan cancellation or demands that
work be started over and corrected. Whatever local requirements prevail for
permit issuances, the owner will be expected to comply with those requirements.
The work being allowed by this program is for health and safety purposes. A
building permit is mandatory for all code-related items. A copy of each permit
must be forwarded to the Housing Rehabilitation Specialist and the original
should be posted on the structure. Building permit fees, where applicable, are
reimbursable items; therefore, they should be included in the original Work
Schedule.
When each code item is completed (such as electrical, plumbing) the Building
Permit is signed off by the Building Inspector. A running copy of the card,
showing sign-offs as they occur, shall be provided to Housing Rehabilitation staff.
4.Disbursements. Any disbursements made from the owner’s loan shall be done in
accordance with the work schedule approved by the program. Any obligations
incurred which are not in accordance with the work schedule may be denied for
payment. Disbursements shall be authorized jointly by the homeowner and a
duly authorized representative of the Home Improvement Program.
All disbursements must be justified by original receipts that are legible, state the
materials purchased or labor provided, and they must be otherwise traceable by
the program. Disbursements will be for eligible materials only.
5.Prohibition Against Cash Refunds. Homeowners are reminded that it is a violation of
program policy for cash refunds to be received for materials purchased or labor
secured. In cases where materials are to be returned and cash is to be received,
all cash must be immediately returned to the owner’s escrow account.
6.Labor Summary Record. By allowing work to be done on an owner participation basis,
it is expected that certain savings will result to the housing rehabilitation program
and to the owner’s loan. The method of keeping track of work being done is the
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“Participant Labor Summary Record.”
VI. APPLICANT SELECTION AND LOAN CLOSING
A. Home Improvement Loan Committee
1. Purpose
The function of the Home Improvement Loan Committee will be to review and act
on applications recommended by program staff for financing. The Committee
shall review applications in terms of: eligibility, compliance with all program
requirements, consistency of staff recommendations regarding loan terms and
type(s) of assistance to be provided. The Committee will also review the
proposed loan package, and, if appropriate, recommend changes in loan terms
and type(s) of assistance to be provided.
2. Composition
The Committee will consist of one member of the City of Ukiah Finance Division,
one member of the City of Ukiah Public Works Division and one member of the
City of Ukiah Special Projects Division.
3. Meetings
The Home Improvement Loan Committee shall meet periodically to review and
act on applications. A quorum shall exist and all minutes shall be recorded. A
quorum is a simple majority of the full committee.
The Committee members shall be advised at least seven calendar days before
the Committee meeting.
4. Action
Action of the Home Improvement Loan Committee shall be by majority vote.
B. Application Processing
The Housing Rehabilitation Staff shall gather any necessary financial information to
determine applicant eligibility and repayment ability. An application consists of:
1. A form containing financial and household information regarding the property
owner.
2. A form containing necessary income and household information. Owner
Occupant income will be verified by use of one or more of the following forms.
a. Request for Verification of Employment
b. Verification of Public Assistance
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c. Income tax information (1040s, etc.)
d. Benefit letters for sources of public assistance or pensions
e. Copies of recent benefit or pay checks
3. Credit evaluations and income, employment and mortgage verifications as
obtained by staff.
4. A preliminary work write-up and cost estimate of required rehabilitation work as
prepared by program staff and approved by applicant.
5. Preliminary Title Report (Full or Limited Coverage) and Estimate of current
market and after rehabilitation market values.
6. Property Appraisal.
7. Termite Inspections and clearances shall be obtained if deemed necessary.
8. A contingency (depending on the complexity of the job) may be included in each
loan. At the completion of rehabilitation, any unexpended funds will be applied to
the loan principal.
9. Owners will receive information regarding rights as prescribed by law and an
authorization form for signature which states that the owner understands that
he/she may be inconvenienced by the rehabilitation work and that he/she agrees
to authorize inspectors and workers to enter his/her living quarters during
reasonable hours.
C. Application Selection
A Loan Committee Report (LCR) will be prepared for all loan applications determined by
staff to be eligible for a housing rehabilitation loan. The LCR and the application will be
brought before the Home Improvement Loan Committee for approval.
General lending criteria that will be used to assist in evaluating the applications of
eligible property owners for financial assistance will include:
1. The ability and willingness of an applicant to repay a loan, as well as all existing
liabilities, as evidenced by such criteria as income, credit history, necessary
monthly expenses, and stability of income.
2. The economic feasibility of property rehabilitation such that a reasonable
expenditure of funds will enable the correction of all major health and/or safety
related items, with the rehabilitated property providing adequate collateral for a
loan that is secured with a deed of trust.
An eligible borrower may be considered for a subsequent loan, provided he/she
has no delinquent payments longer than 10 days and otherwise meets program
requirements and underwriting criteria.
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All recommendations for loans shall be developed by the Housing rehabilitation
staff and submitted to the Home Improvement Loan Committee. The Housing
rehabilitation staff’s recommendations shall be submitted in written form and shall
propose the terms of the loan, interest rate, special conditions, and whether the
loan should be approved or denied. All applications shall be submitted for
consideration regardless of whether the recommendation is for approval or
denial.
D. Loan Approval
All Home Improvement Program Loans must be approved by the Home Improvement
Loan Committee. In order to obtain financing, applicants must meet all property and
income eligibility guidelines in effect at the time of loan approval. Applicants will be
provided written notification of approval or denial. Reason for denial will be provided to
the applicants in writing.
An appropriate funding cut off point established for each review period will determine
the number of applications that may be approved for funding at that particular time.
Qualified applications not selected for funding during one review period will be
automatically reconsidered during subsequent periods.
Housing Preservation Revolving loans may be approved by the City Loan Committee
when the applicant is clearly eligible and when in the opinion of the Loan Committee
existing housing conditions pose a hazard to the health and safety of the applicant.
E. Loan Closing
A Home Improvement Loan Program applicant will have up to two weeks after Loan
Committee approval to accept the offered terms and conditions. At the end of this
period, City staff may rescind the loan commitment.
The Housing Rehabilitation Staff will provide for the execution of all necessary loan
documents and their recordation.
F. Appeals
Objections by any applicant as to policy, procedures, method of operation or decisions
by Citystaff or Home Improvement Loan Committee will be referred to the Assistant City
Manager. The Assistant City Manager will schedule a hearing for the applicant and
establish hearing procedures. Decisions of the Home Improvement Loan Committee
will be based upon its interpretation of the Program Policies and Administrative
Procedures.
VII. INSURANCE
A. Hazard Insurance
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The borrower shall maintain hazard insurance on the property for the duration of the
Home Improvement Loan(s). This insurance must be an amount adequate to cover all
encumbrances on the property. The insurer must identify the City of Ukiah as Loss
Payee for the amount of the Home Improvement Loan(s). Proof of insurance shall be
provided to the City.
In the event the borrower fails to make the hazard insurance premium payments in a
timely fashion, the City, at its option, may make such payments. If the City makes any
such payments, the City may, at its sole discretion, add such payments to the principal
amount that the applicant is obligated to repay under this program.
B. Flood Insurance
In areas designated by the U.S. Department of Housing and Urban Development (HUD)
as flood prone, the owner is required to maintain flood insurance in an amount adequate
to secure the Home Improvement Loan. This policy must designate the City of Ukiah as
Loss Payee. The initial premium may be paid with Home Improvement Loan proceeds
for the first year.
VIII. GENERAL CONTRACTING PROCEDURES AND REQUIREMENTS
A. Contractor Qualifications
The Housing Rehabilitation Staff will maintain a list of all interested contractors who will
be kept informed of upcoming bid proposals. All interested contractors must submit an
application for approval. All contractors and subcontractors must have a current, valid
California Contractor's License and shall provide such proof of insurance as may be
required by the City of Ukiah.
Contractors will be checked against HUD’s list of federally debarred contractors. No
award will be granted to a contractor on this list. Contractors are required to follow all
federal and state regulations pertaining to the City of Ukiah Single-Family Housing
Rehabilitation Program.
Contractors must have public liability and property damage insurance, and worker’s
compensation, unemployment and disability insurance, to the extent required by
State law.
To the maximum extent feasible, the program shall make every attempt to utilize local,
small and minority contractors.
B. Procurement
Bidding for rehabilitation work will be done on a competitive basis with contracts being
awarded to the lowest responsible and responsive bidder selected by the property
owner. The homeowner will be the responsible agent, but the City and/or its
administrator will prepare the work write-up, prepare and advertise the bid package, and
assist the owner in negotiating the construction contract.
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The Contract for rehabilitation will be between the property owner and the contractor.
The Housing Rehabilitation Staff will assist the homeowner with the rehabilitation
contract process.
C. Inspections and Payments
Where warranted by the size of the job and depending upon the contractor's credit line
and number of jobs in progress, progress payments tied to the completion of various
stages of rehabilitation work will be authorized. The number of payments to be made
will be specified in the construction contract. Authorization of progress payments will
require:
1. Inspection of the property by the City Building Inspector to insure that the
completed work is in compliance with local building code standards. Inspection
of the property by the Housing Rehabilitation staff to insure that the work being
billed complies with the Contract Documents and Rehabilitation Standards. If the
work is not found to be in substantial compliance, the payment amount will be
delayed until compliance has been achieved.
2. Following an inspection and approval by the Housing Rehabilitation staff and
property owner of the contractor's invoice and all work being billed, the payment
amount will be calculated according to the contract provisions governing
holdbacks. The payment check will be made out to the contractor.
Final Payment (10% retention) is processed in the same general manner as progress
payments. Upon written final acceptance of the work by the property owner, the
Housing rehabilitation staff, a Notice of Completion will be recorded on the property.
Final Payment (10% retention) may be released following the receipt of a Release of
Lien from the Contractor and waiting period of 31 days from the recordation of the
Notice of Completion.
D. General Contract Conditions and Specifications
The General Conditions and Specifications of the Home Improvement Program shall be
included in all contracts for housing rehabilitation.
All change orders to the contract specifications require the signature of the ownerand
the City’s Housing Rehabilitation staff.
When there are disputes between the contractor and property owner over contract
specifications, job scope or adequacy of performance, City of Ukiah staff will make the
final determination of contract requirements; City staff will have the authority to release
final payment where there is substantial compliance with the contract.
IX. TEMPORARY RELOCATION
Owner occupants will be informed of their eligibility for up to $3,000 in temporary
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relocation benefits if occupancy during rehabilitation constitutes a substantial danger to
health and safety of occupant or public danger or is otherwise desirable because of the
nature of the project. Relocated owner occupants will receive housing costs, payment for
moving and related expenses and appropriate advisory services.
X. REPAIR CALLBACKS
In the event that a contractor must be called back to make corrections on rehabilitation
work items that are not covered by the one year warranty, the City has the option to cover
the costs through the current CDBG construction budget.
XI. COMPLAINT AND APPEAL PROCEDURE
Complaints concerning the City’s Housing Rehabilitation Program should first be
made to the City’s housing rehabilitation staff. City staff will act as mediator
between the homeowner and the General Contractor, and attempt to resolve any
disputes and adverse situations. If unresolved in this manner, the complaint or
appeal shall be made in writing and filed with the City. The City will then schedule a
meeting with the City’s Loan Review Committee. Their written response will be
made within fifteen (15) working days. If the applicant is not satisfied with the
committee's decision, a request for an appeal may be filed with the City Council.
GRIEVANCES BETWEEN BORROWER/GRANTEE AND CONSTRUCTION CONTRACTOR
Contracts signed by the contractor and the borrower/grantee include the following clause, which
provides a procedure for resolution of grievances: Any controversy arising out of or relating to this
Contract, or the breach thereof, shall be submitted to binding arbitration in accordance with the
provisions of the California Arbitration Law, Code of Civil Procedure 1280 et seq., and the Rules of
the American Arbitration Association. The arbitrator shall have the final authority to order work
performed, to order the payment from one party to another, and to order who shall bear the costs
of arbitration. Costs to initiate arbitration shall be paid by the party seeking arbitration.
Notwithstanding, the party prevailing in any arbitration proceeding shall be entitled to recover
from the other all attorney's fees and costs of arbitration.
XII. DELINQUENCIES, DEFAULTS AND FORECLOSURES
A. Policy
The City acknowledges that circumstances beyond a borrower's control may
temporarily limit his/her ability to meet loan terms. The City desires to be flexible
enough so that in cases of: death of a family member, loss of job, divorce and
major illness loan terms may be modified.
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While the City, in this policy, outlines a system that can accommodate crises that
restrict borrowers' ability to meet loan terms, it should in no way be
misunderstood. Loan terms must be fulfilled.
B. Procedure
1. Thirty (30) day and sixty (60) day delinquencies. The City or administrator
will send the borrower a letter noting the amount delinquent or
performance default. This letter shall be followed by a telephone call
reminding the borrower of the loan amount and due date or performance
default.
2. Ninety (90) day delinquency. The City will send a certified letter noting
the amount delinquent or performance default. In this letter, a date and
time shall be set for a meeting between the borrower and the City housing
rehabilitation staff or designee. At this meeting the following will be
discussed:
- reasons for delinquency or default
- any changes in the borrower's health,
family circumstances or financial status
that limits their repayment ability
- amount in arrears.
At conclusion of this meeting, the following will be determined:
- how and when the amount in arrears will be paid;
- how performance defaults will be remedied;
- if a personal emergency (loss of a job, loss of
spouse or co-borrower, serious illness) has
restricted repayment ability.
If because of such an emergency, the borrower cannot fulfill the term(s) of
the loan or afford to pay the full monthly installment, housing rehabilitation
staff may exercise one or more of the following options:
a. Extend the time of payment or otherwise alter the terms of any of
the indebtedness;
b. Accept additional security therefore of any kind, including trust
deeds or mortgages;
c. Alter, substitute or release any property securing the indebtedness.
Any action taken as a result of this meeting shall be documented and
recorded in the required fashion.
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3. If the borrower does not appear for the 90-day delinquency meeting, and
does not contact City staff to reschedule the meeting, staff may
immediately begin foreclosure proceedings.
4. Any borrower who participates in the process outlined in Item B and then
becomes 90 days delinquent within two years of renegotiating their loan
terms may be subject to immediate foreclosure.
XIII. AFTER-REHABILITATION PROPERTY MAINTENANCE
A. Policy
ALL Home Improvement Loans require the borrower:
1. To protect and preserve said property and to maintain it in good condition
and repair;
2. Not to remove, demolish or materially alter any building or any
improvement thereon, nor to change or alter either the terms and
conditions of any existing lease of the premises, or the present character
of use of said property;
3. To complete or restore promptly and in good workmanlike manner any
building or improvement that may be constructed, damaged or destroyed
thereon and pay when due all costs incurred therefore; and to comply with
all of the terms of any loan agreement between Trustor and Beneficiary;
4. Not to commit or permit waste of the property;
5. To comply with all laws, covenants, conditions or restrictions affecting the
property;
6. To cultivate, irrigate, fertilize, fumigate, prune and do all other acts that
from the character or use of said property may be reasonably necessary,
the specific enumerations herein not excluding the general.
These conditions help assure that the property does not revert to a substandard
state.
B. Procedure
When the City becomes aware that rehabilitated property is not being properly
maintained it may:
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1. Provide the borrower in writing:
a. a list of needed repairs or maintenance items
b. a recommendation as to a solution to the deficiencies
c. a request that the repairs be performed within 60 days
2. At the end of the 60-day period, Housing Rehabilitation staff shall inspect
the property. If the needed repairs have not been performed, staff shall
set an appointment with the borrower to discuss why maintenance has not
been performed. If the borrower is unable to afford to make the needed
repairs and if the repairs represent a new building deficiency not covered
by the original rehabilitation, additional funds may be provided.
3. Following the visit and inspection, the borrower will be given 60 days to
make the necessary repairs. The borrower will be given written notice at
the start of this phase that if repairs are not performed within 60 days the
borrower will be considered to be in default.
4. If repairs are not performed within 60 days of the notice outlined in Item 3,
the City may begin foreclosure proceedings.
XIV. AMENDMENTS
Amendments to these Policies and Procedures may be made by the City and
will be submitted to the California Department of Housing and Community
Development for approval. Where changes in the guidelines would adversely
affect program applications already under review, such applications will be
evaluated under the guidelines in effect at the time of application.
XV. ATTACHMENTS
The following documents are attached and form a part of these guidelines:
ATTACHMENT A: Annual Household Income Definition/Income Limits
ATTACHMENT B: City of Ukiah Residential Anti-displacement and Relocation
Assistance Plan
ATTACHMENT C: CDBG Foreclosure Policy
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ATTACHMENT A
ANNUAL HOUSEHOLD INCOME DEFINITION/INCOME LIMITS
INCOME LIMTS FOR ALL OF MENDOCINO COUNTY – 2014
Number of
Persons in
Household
1 2 3 4 5 6 7 8+
Income
Limit
(Yearly)
$30,700
$35,100
$39,500
$43,850
$47,400
$50,900
$54,400
$57,900
Note: Limits contained above will be updated annually as HCD releases the information.
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ATTACHMENT B
CITY OF UKIAH RESIDENTIAL ANTI-DISPLACEMENT AND
RELOCATION ASSISTANCE PLAN
The jurisdiction will replace all occupied and vacant occupiable low/moderate-income
dwelling units demolished or converted to a use other than as low/moderate-income
housing as a direct result of activities assisted with funds provided under the Housing
and Community Development Act of 1974, as amended, as described in 24 CFR
470.606 (b) (1) and 24 CFR 92.
All replacement housing will be provided within three years of the commencement of the
demolition or rehabilitation relating to conversion. Before obligating or expending funds
that will directly result in such demolition or conversion, the jurisdiction will make public
and submit to the Department the following information in writing:
1. A description of the proposed assisted activity;
2 The general location on a map and approximate number of dwelling units by size
(number of bedrooms) that will be demolished or converted to a use other than as
low/moderate-income dwelling units as a direct result of the assisted activity;
3. A time schedule for the commencement and completion of the demolition or
conversion;
4. The general location on a map and approximate number of dwelling units by size
(number of bedrooms) that will be provided as replacement dwelling units.
5. The source of funding and a time schedule for the provision of replacement
dwelling units;
6. The basis for concluding that each replacement dwelling unit will remain a
low/moderate-income dwelling unit for at least 10 years from the date of initial
occupancy.
The jurisdiction will provide relocation assistance to each low/moderate-income
household displaced by the demolition of housing or by the conversion of a
low/moderate-income dwelling to another use as a direct result of assisted activities.
Consistent with the goals and objectives of activities assisted under the Act, the
jurisdiction will take the following steps to minimize the displacement of persons from
their homes:
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A. Steps to Minimize or Prevent Displacement
1. Use CDBG funds to provide seed money grants or loans, long-term mortgage loans
at favorable rates, or capital grants to tenant groups of multi-family buildings to help
them convert to cooperatives.
2. Stage rehabilitation of assisted housing to allow tenants to remain during and after
rehabilitation, working with empty building or groups or empty units first so they can be
rehabilitated first and tenants moved in before rehab on occupied units or building is
begun.
3. Establish temporary relocation facilities in order to house families whose
displacement will be of short duration, so they can move back to their
neighborhoods after rehabilitation or new construction.
4. Evaluate housing codes and rehabilitation standards in reinvestment areas to
prevent their placing undue financial burden on long-established owners or on tenants
of multi-family buildings.
5. Provide counseling via Government or non-profit organizations to assist
homeowners and renters to understand the range of assistance that may be available to
help them in staying in the area in the face of revitalization pressures.
6. Shift the concentrated demand generated by intense investment in one or two
neighborhoods to other neighborhoods by: (a) targeting public improvements into
several other neighborhoods with potential for revitalization; (b) conduction of
advertising campaigns to attract interest in other neighborhoods.
B. Steps to Assist Displaced Persons to Remain in their Present Neighborhood
1. Provide lower-income housing in the neighborhood through HUD housing
programs; purchase units as is; rehabilitate vacant units;
2. Give Priority in assisted housing units in the neighborhood to area residents facing
displacement.
3. Target Section 8 existing program certificated to households being displaced, and
recruit area landlords to participate in the program.
4. Provide counseling and referral services to assist displacees find alternate housing
in the neighborhood.
5. Work with area landlords and real estate brokers to locate vacancies for household
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facing displacement.
C. Steps to Otherwise Mitigate Adverse Effects of Displacement
1. Use of public funds, such as CDBG funds, to pay moving costs and provide
relocation payments, or require private developers to provide compensation to persons
displaced by development activities.
2. Give displacees priority in obtaining subsidized housing units.
3. Provide counseling and referral services to assist displacees to locate elsewhere in
the community or metropolitan area.
D. Additional Procedures for Acquisition of Single-Family Homes (HOME funds)
When the jurisdiction uses HOME funds to obtain a single-family home, or to provide financial
assistance in such a transaction, the URA and its implementing regulations (49 CFR part 24) will
be adhered to. Policies and Procedures described in HUD Handbook 1378, Chapters 1 through 6
and Chapter 8 will be implemented, and those specific to the HOME program described on pages
8-17 through 8-23, will be followed.
1. Unit occupied by home owner: The home owner will be notified in writing that the
jurisdiction
2. Will not use its power of eminent domain to acquire the property. The homeowner will be
informed in writing of the jurisdictions estimate of the fair market value to the property.
These notices will be issued at the earliest possible date.
3. Unit occupied by tenant: The homeowner will receive the notifications stated above. In
additions, the tenant will be issued a notice at the earliest possible date. The notice will
include all information required under URA including a caution not to move prematurely,
and information on relocation assistance. Information on comparable replacement units will
be provided, as well as material on social services and housing programs. Upon moving,
the tenants will be provided with moving expenses and rent differential, (per URA) where
applicable. A notice informing tenants of the date they will be required to move will be
issued.
If a unit is vacant at the time of negotiation of sales, or becomes vacant later, any prospective
tenant will be notified of the pending sale, informed that they may be required to move, and that
they will not be entitled to relocation assistance.
The issuing of all notices and the processing of relocation assistance will be the responsibility of
the City of Ukiah and/or its administrator.
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ATTACHMENT C
CDBG FORECLOSURE POLICY
Process for Loan Foreclosure:
Upon any condition of loan default: 1) non-payment; 2) lack of insurance or property tax payment;
3) violation of rent limitation agreement; 4) change in title or use without approval; 5) default on
senior loans, Lender will send out a letter to the Borrower notifying them of the default situation. If
the default situation continues then the Lender may start a formal process of foreclosure.
When a senior lien holder starts a foreclosure process and the Lender is notified via a Request for
Notice of Default, the Lender, who is the junior lien holder, may cancel the foreclosure proceedings
by "reinstating" the senior lien holder. The reinstatement amount, or payoff amount must be
obtained by contacting the senior lien holder. This amount will include all delinquent payments, late
charges and fees to date. Lender must confer with Borrower to determine if, upon paying the senior
lien holder current, the Borrower can provide future payments. If this is the case then the Lender
may cure the foreclosure and add the costs to the balance of the loan with a Notice of Additional
Advance on the existing note.
If the Lender determines, based on information on the reinstatement amount and status of borrower,
that bringing the loan current will not preserve the loan, then staff must determine if it is cost effective
to protect their position by paying off the senior lien holder in total and restructure the debt such that
the unit is made affordable to the Borrower. If the Lender does not have sufficient funds to pay the
senior lien holder in full, then they may choose to cure the senior lien holder and foreclose on the
property themselves. As long as there is sufficient value in the property, the Lender can afford to
pay for the foreclosure process and pay off the senior lien holder and retain some or all of their
investment.
If the Lender decides to reinstate, the senior lien holder will accept the amount to reinstate the loan
up until five (5) days prior to the set "foreclosure sale date." This "foreclosure sale date" usually
occurs about four (4) to six (6) months from the date of recording of the "Notice of Default." If the
Lender fails to reinstate the senior lien holder before five (5) days prior to the foreclosure sale date,
the senior lien holder would then require a full pay off of the balance, plus costs, to cancel
foreclosure. If the Lender determines the reinstatement and maintenance of the property not to be
cost effective and allows the senior lien holder to complete foreclosure, the Lender's lien may be
eliminated due to insufficient sales proceeds.
Lender As Senior Lien Holder:
When the Lender is first position as a senior lien holder, active collection efforts will begin on any
loan that is 31 or more days in arrears. Attempts will be made to assist the homeowner in bringing
and keeping the loan current. These attempts will be conveyed in an increasingly urgent manner
until loan payments have reached 90 days in arrears, at which time the Lender may consider
foreclosure. Lender’s staff will consider the following factors before initiating foreclosure:
A. Can the loan be cured and can the rates and terms be adjusted to allow for affordable
payments such that foreclosure is not necessary?
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B. Can the Borrower refinance with a private lender and pay off the Lender?
C. Can the Borrower sell the property and pay off the Lender?
D. Does the balance warrant foreclosure? (If the balance is under $5,000, the expense to
foreclose may not be worth pursuing.)
E. Will the sales price of home "as is" cover the principal balance owing, necessary
advances, (maintain fire insurance, maintain or bring current delinquent property taxes,
monthly yard maintenance, periodic inspections of property to prevent vandalism, etc.)
foreclosure, and marketing costs?
If the balance is substantial and all of the above factors have been considered, the Lender may opt
to initiate foreclosure. The Borrower must receive, by certified mail, a thirty-day notification of
foreclosure initiation. This notification must include the exact amount of funds to be remitted to the
Lender to prevent foreclosure (such as, funds to bring a delinquent BMIR current or pay off a DPL).
At the end of thirty days, the Lender should contact a reputable foreclosure service or local title
company to prepare and record foreclosure documents and make all necessary notifications to the
owner and junior lien holders. The service will advise the Lender of all required documentation to
initiate foreclosure (Note and Deed of Trust usually) and funds required from the owner to cancel
foreclosure proceedings. The service will keep the Lender informed of the progress of the
foreclosure proceedings.
When the process is completed, and the property has "reverted to the beneficiary" at the foreclosure
sale, the Lender could sell the home themselves under a homebuyer program or use it for an
affordable rental property managed by a local housing authority or use it for transitional housing
facility or other eligible use. The Lender could contract with a local real estate broker to list and sell
the home and use those funds for program income eligible uses.
Recommended Action(s) Adopt the resolution of application, and direct staff to submit to the LAFCO
Executive Officer the required documents to initiate detachment proceedings before LAFCO, request
from the County Assessor the necessary property tax information to begin negotiations with Mendocino
County for a property tax exchange agreement and take other steps necessary and appropriate to
process the application. Require staff to report to the City Council the progress in processing the
application and to promptly seek City Council approval as required.
Alternative Council Option(s): Provide staff with alternative direction
Citizens advised:
Requested by: City Council
Prepared by: David J. Rapport, City Attorney, Charley Stump, Planning Director
Coordinated with: Jane Chambers, City Manager and Tim Eriksen, Public Works Director, Consultants
1. Map of area to be detached
Attachments: 2. October 13, 2011 letter from City Council to UVSD Board
3. November 1, 2011 response letter from UVSD Board to City Council
4. Minutes of December 21, 2011, City Council meeting
5. Resolution of Application to Detach City areas from District
6. Justification of Proposal
ITEM NO.:
MEETING DATE:
12a
November 5, 2014
AGENDA SUMMARY REPORT
SUBJECT: DISCUSSION AND POSSIBLE ADOPTION OF RESOLUTION OF APPLICATION TO
THE MENDOCINO LOCAL AGENCY FORMATION COMMISSION TO DETACH
FROM THE UKIAH VALLEY SANITATION DISTRICT THE PORTION OF THE
DISTRICT LOCATED IN THE CITY LIMITS
Summary: A portion of the City has remained part of the Ukiah Valley Sanitation District (“District”), even
after those areas were annexed to the City. This area, called the “overlap” area, is comprised of 1304
parcels and is depicted on the map attached as Attachment 1. As explained in more detail below the staff is
asking the City Council to approve a resolution of application to the Local Agency Formation Commission
(“LAFCO”) to detach the overlap area from the District. Since 2010, the District has been seeking greater
and greater independence from the City. These efforts have and will continue to increase the cost of
providing sewer service to City residents, disrupt the provision of municipal services to City residents,
subject City residents to duplicative and unnecessary administrative expenses, and cause unnecessary
confusion for City residents. Detaching the overlap area from the District will avoid these adverse effects
and provide oversight and control of sewer service in the City by one local government rather than two.
Background: In 2011, the City Council appointed an ad hoc committee consisting of Councilmembers
Baldwin and Landis to meet with an ad hoc committee of the District to discuss possible changes to the
1995 Participation Agreement between the City and the District under which the City provides sewer service
to both the City and the District. A facilitator was hired for the meetings. In September 2011, the facilitator
submitted a report to the City and the District reporting on proposed changes to the Participation Agreement
supported by a majority of the members of the combined ad hoc committees.
On October 5, 2011, the City Council approved a letter to the District responding to that report. The
proposed changes to the Participation Agreement would change the existing arrangement for providing
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sewer services to the City and the District. Under the Participation Agreement, as currently written, the
combined City/District collection system and the wastewater treatment plant are treated as one system
which the City operates and maintains and the City provides billing and collection services for both the
District and the City. All of the costs are allocated between the City and the District based on the ratio of
“equivalent sewer service units” (ESSUs) in the City and the District.
The proposed changes would require expenses of the collection system to be paid by the District, if the
expense were incurred in the maintenance or repair of the District’s collection system and by the City, if the
maintenance or repair were incurred in the maintenance or repair of the City’s collection system. The costs
of operating and maintaining the wastewater treatment plant would continue to be apportioned based on
ESSUs. The District would be authorized to assume billing and collections for District customers and to
assume the maintenance and repair of the District’s collection system.
The City had a number of questions about the proposals and concluded that additional negotiations would
be necessary to address those questions. At that meeting the City Council concluded that these
negotiations needed to include detachment from the District of the overlap area, since the impacts of these
changes are very different, if the District and the City are geographically separate jurisdictions. It authorized
a letter to the District, attached as Attachment 2, which notified the District that continued negotiation of
these changes to the Participation Agreement would have to include negotiations over detachment. The
letter also included an analysis the City had done which showed the financial impact on the District resulting
from the detachment of the overlap area.
On November 1, 2011, the District responded by letter, stating that it was unwilling to include negotiations
over detachment in these negotiations. (See Attachment 3.) At the December 21, 2011, City Council
meeting, when it considered the District’s response, the City Council directed staff to write a letter offering to
meet and discuss detachment once the District believes it has sufficient information to meet and discuss
detachment. (See Attachment 4, minutes of items 13.c on agenda for that meeting.)
In the three years since the City sent the District the City’s analysis of the financial impact of detachment on
the District, the District has made clear that it is unwilling to discuss detachment. At the same time, the
District appears to be determined to press forward with these changes to the Participation Agreement and to
assume responsibility for maintenance and repair of its collection system and for billing its customers and
collecting the fees paid by its customers.
In October 2013 the District filed a law suit against the City seeking as much as $40 Million in damages for
alleged wrongs going back to 1967. On October 17, 2014, the District sent the City a resolution adopted by
its Board of Directors on October 16, authorizing the District’s chairman to give notice to the City that the
District is terminating the Participation Agreement.
Based on these events, the City faces the following situation. Beginning in 2010 the District established
rates for monthly sewer fees and connection fees that are different from the City’s. The District has adopted
some regulations for sewer service that differ from the City’s. Currently, City residents benefit from the City
providing sewer services to both the District and the City. The City can use the same crews to maintain both
its water and sewer system, reducing the cost of providing sewer services by sharing the cost of these
employees with both utilities. These City employees can share facilities and equipment that are used by
multiple City departments, allowing the costs of those facilities and equipment to be shared by those
departments. They can be supported by administrative services that serve all City employees, such as
payroll, human resources, and accounting. The City Engineer provides engineering services to the sewer
system and to the other City departments and utilities. These costs can be apportioned among the City
enterprise funds and its general fund. City residents receive a consolidated utility bill from the City and have
various ways to contact the City with questions about their bill. The billing costs are shared among all of the
City’s utilities.
Despite these advantages, the District seeks to separate itself further from the City and begin providing
maintenance and repair of its collection system and billings and collections to its customers. It has no
3
experience providing these services. It has not presented a plan to the City on how it proposes to provide
these services and at what cost. The provision of sewer service has become an increasingly regulated
service subject to both state and federal requirements enforced by the North Coast Regional Water Quality
Control Board. The collection system is subject to waste discharge requirements imposed by the Regional
Board with very expensive mandatory fines, if those requirements are violated.
These circumstances make detachment vitally important to the City’s ability to serve all of its residents with
cost-effective municipal services. The City’s ability to promote economic development in the City is
undermined, if it does not have control over sewer connection fees for new businesses that want to locate in
the City. The District’s connection fees already may have discouraged some businesses from locating in the
City. For example City staff knows of a restaurant inside the City limits that abandoned expansion plans
when it learned there would be UVSD connection fees based on added seating. The City would not have
charged these additional fees. A new restaurant inside the City limits was charged a UVSD connection fee
of $51,587 (lowered by UVSD from an initial calculation of $85,069) where the City’s fee would have been
$23,500.
With no willingness on the part of the District to discuss detachment, on July 16, 2014, the City Council
authorized the retention of a consultant and a law firm with expertise in detachment proceedings to assist
the City in applying to LAFCO to detach the City from the District
Basic Steps in the Proposed Detachment from Ukiah Valley Sanitary District. The following describes
the process required to detach the City territory from the District.
Step 1 -- Application to LAFCO
Transmittal letter
Resolution of application adopted by the City Council
Completed LAFCO Proposal Questionnaire
Map and legal description of proposed detachment area
LAFCO processing fee
Step 2 -- LAFCO review and approval/denial
Receive application including City Council resolution
Receive property tax exchange agreement by Board of Supervisors and City Council
Issue Certificate of filing; clock starts running
Provide published, posted and mailed public notice of hearing
Prepare Executive Officer's report and recommendation, include factors LAFCo must
consider
LAFCo conducts public hearing for testimony, not to count written protests
LAFCO adopts resolution making determinations; assigning terms and conditions and
setting an effective date; since LAFCo is a quasi-legislative agency, no findings of fact
are required
City submit and LZAFCO review maps and legal descriptions
4
LAFCo staff issues a notice of exemption
Step 3 -- Conducting Authority hearing and decision
Public notice -- publish, post, mail
Number of written protests determines the outcome: (1) terminate proceedings
(50% or more of the registered voters or landowners file written protests), (2) order the
change subject to an election (at least 25 percent, but less than 50 percent, of the
registered voters residing in the affected territory or at least 25 percent of the number of
owners of land who also own at least 25 percent of the assessed value of land within
the affected territory file written protests), or (3) order the change without conducting
an election (less than 25% of the number of owners of land who also own at least 25
percent of the assessed value of land within the affected territory file written protests)
Step 4 -- Election, when required is conducted by County of Mendocino
If required, an election is held in the detachment area
Vote results – a majority is needed
Board of Supervisors adopts resolution declaring results of election
Step 5 – Final filing by LAFCO staff
LAFCO staff reviews resolution for conformance with LAFCO approval
LAFCO issues and records a Certification of Completion
LAFCO files detachment with State Board of Equalization et al
Adopting Resolution of Application. .Attached as Attachment 5 is a proposed Resolution of Application
which will initiate the process of seeking LAFCO approval of detaching the overlap area from the District.
A cover letter, LAFCO questionnaire, various exhibits and a $5000 filing fee will accompany the resolution
when it is submitted to LAFCO. (See Attachment 5.) The cover letter will point out that detachment requires
approval after two public hearings are held: (1) a hearing before LAFCO to approve the detachment (Step 2,
above) and (2) a protest hearing as described under Step 3, above. Only after LAFCO approves the
detachment, will the residents and landowners within the detachment area have the opportunity to decide
for themselves whether they support the detachment. If LAFCO fails to approve the detachment, these
residents and landowners will be deprived of the opportunity to express their views on whether the
detachment should proceed.
The Executive Officer of LAFCO cannot file the application and initiate a hearing on the application, until the
City files a property tax exchange agreement with the Mendocino County Board of Supervisors. That
agreement will determine how the property taxes currently received by the District from property in the
detached area are handled after the detachment becomes effective. Once the application is submitted to
LAFCO, the City will request the County Assessor to report the property tax data for the overlap area. With
that information in hand, the City will initiate negotiations with the County for the required tax exchange
5
agreement. The Board of Supervisors must negotiate that agreement in good faith. District approval of the
agreement is not required.
The Resolution of Application is required to identify the conditions the City requests LAFCO to impose, if it
approves the detachment. Under Government Code Section 56886, LAFCO is empowered to condition a
local government change of organization, including a detachment, on a variety of requirements. These can
include the disposition, sale, transfer or division of real or personal property (subd. (h)), the disposition,
transfer or division of any money or funds, including cash on hand and money due but uncollected (subd.
(i)), the payment of any outstanding bonded indebtedness, including revenue bonds (subd. (c)) and any
other matters necessary or incidental to any of the terms and conditions included in Section 56886.
The conditions proposed in the resolution are:
A. Transfer of real property –Transfer to the City of all real property and easements
currently held by the District within the detachment area.
B. Transfer of physical assets - Transfer to the City all of the District’s physical assets
comprising its waste collection system within the detachment area.
[The Public Works Department is preparing a map showing all of the sewer mains and other facilities within
the overlap area and which of these facilities only serve the overlap area and which facilities will continue to
serve both the City and the portion of the District outside the overlap area.]
C. Sharing facilities and costs –
(1) After the detachment is completed, the City and District shall continue to share
infrastructure and costs required to collect and treat wastewater originating in the District and the City in
accordance with the existing Participation Agreement, as amended, between the City and the District.
(2) Except as provided in subsection (3), below, the District shall continue to pay its
share of the debt service on the bonds (“WWTP bonds”) issued in 2006 to upgrade and expand the City
owned wastewater treatment plant (“WWTP”) in accordance with the Financing Agreement between the City
and the District.
(3) The District’s proportionate share of the expansion portion of the debt service for
the WWTP bonds shall be modified from the current 65% to a fraction in which the denominator is 2400
Equivalent Sewer Service Units (“ESSUs”), as defined in the Participation Agreement, which is the number
of EESUs resulting from the WTTP expansion project, and in which the numerator is the number of those
ESSUs already assigned to the District as a result of new connections within the portion of the District
outside the overlap area plus the number of ESSUs required by the District to satisfy the demand for new
connections in the reduced District territory and in the District’s sphere of influence.
D. Transfer of monetary assets – Upon completion of the detachment, a proportionate
share of District’s monetary assets, including cash on hand, and all reserve funds, including the rate
stabilization fund which are properly attributable to the overlap area shall be transferred to the City. This
amount shall be determined by multiplying all of these funds by a fraction the denominator of which is the
total revenue received by the District in the five full fiscal years prior the effective date of the detachment
and the numerator of which is the amount of such revenue from the overlap area. District shall provide an
accounting for the purposes of distribution of all monetary assets, including, but not limited to, cash on hand,
reserve funds of all types, amounts due and payable, and state and federal grant amounts.
E. Change in property tax allocation factors –For the fiscal year following completion
of the detachment, and in subsequent fiscal years, the property tax apportionment factors allocated to
District within the detachment area shall be reapportioned to the City pursuant to section 99 of the California
Revenue and Taxation Code.
F. Appropriations limit – Coincident with the detachment a portion of District’s
appropriations limit equal to the amount of property tax reapportioned from the District to the City shall be
transferred to the City.
6
The City will have to provide a legal description of the overlap area before the detachment can be finalized.
The City will propose to prepare that description after the detachment is approved, but before it is finalized.
This will allow the City to incur this expense only after it knows that the detachment has been approved.
Recommendations:
Staff recommends that the City Council adopt the resolution of application, and direct staff to submit to the
LAFCO Executive Officer the required documents to initiate detachment proceedings before LAFCO,
request from the County Assessor the necessary property tax information to begin negotiations with
Mendocino County for a property tax exchange agreement and authorize staff to take other steps necessary
and appropriate to process the application. Require staff to report the progress in processing the application
and to promptly seek City Council approval as required.
Fiscal Impact:
Budgeted FY 14/15 New Appropriation X Not Applicable Budget Amendment Required
Amount Budgeted Source of Funds (title and #) Account Number Addit. Appropriation
Requested
Legend
Ukiah City Limits
UVSD Parcels in City of Ukiah
UVSD Parcels within Ukiah City Limits
¯
Page 1 of 6
12/21/2011
CITY OF UKIAH
CITY COUNCIL MINUTES
Regular Meeting
CIVIC CENTER COUNCIL CHAMBERS
300 Seminary Avenue
Ukiah, CA 95482
12/21/2011
______________________________________________________________________
1. ROLL CALL Ukiah City Council met at a Regular Meeting on December 21, 2011, the notice for which
being legally noticed on December 15, 2011. Mayor Rodin called the meeting to order at
6:03 pm. Roll was taken with the following Councilmembers present: Landis, Thomas,
Crane, Baldwin, and Mayor Rodin. Councilmembers absent: Baldwin. Staff Present:
City Manager Chambers, Assistant City Manager Sangiacomo, City Attorney Rapport,
City Clerk Currie, Community Services Administrator Marsolan, Director of Public Works
and City Engineer Eriksen, Finance Director Elton, Museum Director Smith-Ferri, Director
of Planning and Community Development Stump, Building Official Willoughby, Project
and Program Analyst Riley, and Conference Center Administrator Randall.
2. PLEDGE OF ALLEGIANCE
3. PROCLAMATIONS/INTRODUCTIONS/PRESENTATIONS
a. Outgoing Mayor Presentation and Dais Seating Changes
Outgoing Mayor Rodin presented incoming Mayor Landis with the gavel. Mayor
Landis expressed appreciation of the job Councilmember Rodin did as Mayor and
presented her with a plaque. Mayor Landis assumed the gavel and presided over
the meeting.
b. Proclamation: Martin Luther King Day
Councilmember Thomas read and presented the proclamation to Dianne Durham,
Ukiah Aware, invited the City Council and community to two events Sunday,
January 15, 2012 taking place at the Saturday Afternoon Club House.
4. PETITIONS AND COMMUNICATIONS
5. APPROVAL OF MINUTES
a. Regular Meeting Of 11/16/11
Continued.
6. RIGHT TO APPEAL DECISION
Page 2 of 6
12/21/2011
7. CONSENT CALENDAR
a. Report Of Disbursements For Month Of November 2011
M/S Crane/Thomas to Approve 7a. Motion carried by the following roll call votes: AYES:
Thomas, Crane, Rodin, and Landis. NOES: None. ABSENT: Baldwin. ABSTAIN: None.
Vice Mayor Crane requested item 7b to be withdrawn from the consent calendar.
b. Award Contract To Vaughn's Industrial Repair For The Repair Of Five 10" And
Four 16" Vertical Turbine Solid Handling Pumps And Approve Corresponding
Budget Amendment. MOVED to New Business 13.f
8. AUDIENCE COMMENTS ON NON-AGENDA ITEMS
9. COUNCIL REPORTS Councilmember Rodin reported that the Courthouse Public Advisory committee met 12-
21-11 and with a 5 to 2 vote made the depot site the preferred site. However, the library
site will proceed to phase 2. Rodin reported on the TOT project, Ukiah Walks. The
brochure, which identifies four walking routes, is finished and distributed. The Ukiah
Valley Trail Group is going to install color coordinated markers along the trail routes.
Vice Mayor Crane read for the record a statement regarding Anton Stadium (see
attachment A). City Council agreed that a review of the project to evaluate the process
will be scheduled upon the completion of Anton Stadium is appropriate.
10. CITY MANAGER/CITY CLERK REPORTS City Manager Chambers announced two reports from staff, one on the First Time Home
Buyers Program and an update on the City's financial system. Assistant City Manager
Sangiacomo reported on the First Time Home Buyers program. The City of Ukiah
received a $700,000 grant and will now continue the program. Assistant Finance Director
Roth reported on steps taken since City Council approved the purchase of the financial
software. The kick off meeting occurred and the chart of accounts is under construction.
Councilmember Crane asked to see the current chart of accounts to examine the
evolution.
11. PUBLIC HEARINGS (6:15 PM)
12. UNFINISHED BUSINESS
a. Discussion and Possible Direction Regarding Ukiah Valley Sanitation District
(UVSD) Response to City Requests Regarding Proposed Revisions to the 1995
Participation Agreement and Report to Council Regarding Status of Joint Meeting
Agenda for January 12, 2012.
City Manager Chambers presented the item. Director of Public Works and City
Engineer Eriksen and Finance Director Elton were available to answer questions.
Recommended Action(s): Discuss response to UVSD's letter dated November 1,
Page 3 of 6
12/21/2011
2011 and UVSD's proposed agenda items for the next Joint Meeting and provide
direction to staff.
City Attorney Rapport said he is working with Ross Walker, UVSD's attorney, to get
arbitration back on track. Dispute resolution has been initiated over City Council's
refusal to include the District's administrative costs in the budget.
Director Eriksen notified City council the UVSD ad hoc has been disbanded.
By Consensus, City Council directed staff to write a letter offering, once UVSD feels
they have enough information, to meet and discuss detachment. The Ad Hoc
Committee is willing to meet and have staff attend some meetings but not others
(an agreed upon schedule). City will wait until a date to be determined and in the
mean time staff will propose modifications to the participation agreement that the
City would be willing to consider if the District were detached from the City.
City staff is to report to City Council a schedule and the steps needed for
detachment from the perspective of what best serves the rate payer.
The Joint UVSD and City Council meeting in January is deferred.
13. NEW BUSINESS
c. Authorize City Manager To Negotiate And Execute A Contract With Alchemy Of
Design For Interpretive Design Services In An Amount Not To Exceed $103,465
To Be Reimbursed By Grant Funds For The Grace Hudson Cultural Center Project
Community Services Administrator Marsolan and Museum Director Smith-Ferri
presented the item. Recommended Action(s): Authorize City Manager to negotiate
and execute a contract with Alchemy of Design for interpretive design services in an
amount not to exceed $103,465 to be reimbursed by grant funds for the Grace
Hudson Cultural Center Project.
a. Authorize City Manager To Negotiate And Execute A Contract With Ann Baker
Landscape Architecture In An Amount Not To Exceed $30,655 To Be Reimbursed
By Grant Funds For The Grace Hudson Cultural Center Project
Community Services Administrator Marsolan and Museum Director Smith-Ferri
presented the item. Recommended Action(s): Authorize City Manager to negotiate
and execute a contract with Ann Baker Landscape Architecture in an amount not to
exceed $30,655 to be reimbursed by grant funds for the Grace Hudson Cultural
Center Project.
Public Comment Opened 7:53 pm
Public speaking to the item: Lisa Mammina.
Public Comment Closed 7:56 pm
City Council desires to look at a local preference policy.
Page 4 of 6
12/21/2011
M/S Rodin/None to approve Recommended Actions for both 13a and 13c. Vice
Mayor Crane would second if he knew the spread between the proposal amounts.
Motion Failed.
M/S Rodin/Crane to approve 13a, authorize City Manager to negotiate and execute
a contract with Ann Baker Landscape Architecture in an amount not to exceed
$30,655 to be reimbursed by grant funds for the Grace Hudson Cultural Center
Project. Motion carried by the following roll call votes: AYES: Thomas, Crane,
Rodin, and Landis. NOES: None. ABSENT: Baldwin. ABSTAIN: None.
Item 13c continued.
Recessed 8:07 pm and Reconvened 8:14 pm
b. Adopt Resolution Declaring The Property And Dilapidated Palace Hotel Structure
Located At 272 North State Street A Public Nuisance And The Intent To
Commence Abatement Proceedings
Director of Planning and Community Development Stump and Building Official
Willoughby presented the item. Recommended Action(s): Adopt resolution declaring
the dilapidated Palace Hotel structure located at 272 North State Street to be a
public nuisance and the City's intent to commence with abatement of the building.
M/S Crane/Thomas to approve Recommended Actions.
Public Comment Opened 8:15 pm
Public speaking in support of the item: John McCowen and Don Moser.
Public speaking in opposition to the item: Lisa Mammina, for the record she stated
her willingness to be part of a positive solution.
Public Comment Closed 8:25 pm
Motion carried by the following roll call votes: AYES: Thomas, Crane, Rodin, and
Landis. NOES: None. ABSENT: Baldwin. ABSTAIN: None.
d. Presentation And Approval Of Visit Ukiah's (Transient Occupancy Tax Program)
Draft 2012 Budget And Work Plan
Assistant City Manager Sangiacomo, Project and Program Analyst Riley, and
Conference Center Administrator Randall presented the item. Recommended
Action(s): Approve Visit Ukiah's 2012 Draft Work Plan and Budget.
M/S Crane/Rodin to approve Recommended Action. Motion carried by the
following roll call votes: AYES: Thomas, Crane, Rodin, and Landis. NOES: None.
ABSENT: Baldwin. ABSTAIN: None.
e. Discussion And Possible Action Regarding Council Board, Committee, And
Commission Assignments
Mayor Landis presented the item. Discuss and appoint City Councilmembers to
various boards, committees, and commissions.
Page 5 of 6
12/21/2011
COMMITTEE ASSIGNED TO
Greater Ukiah Chamber of Commerce Liaison
ex officio
Thomas
Landis/Alternate
City Selection Committee Mayor
Investment Oversight Committee Crane
Library Advisory Board Thomas
Landis/Alternate
Main Street Program Board of Directors
ex officio
Thomas
Landis/Alternate
Mendocino Council of Governments (MCOG) Rodin
Thomas/Alternate
Mendocino County Inland Water and Power
Commission
Thomas
Baldwin/Alternate
Mendocino County Airport Land Use
Commission
None from Ukiah Council
currently
Mendocino Solid Waste Mgmt. Authority
(MSWMA)
Landis
Baldwin/Alternate
Mendocino Transit Authority (MTA) Board of
Directors
Thomas
Baldwin/Alternate
Mendocino County Local Area Formation
Commission (LAFCO)
Rodin
Holly Madrigal
(Willits)/Alternate
Northern California Power Agency (NCPA) Crane
Thomas/Alternate
Electrical Utility
Director/Alternate
Transmission Agency of Northern California
(TANC)
Crane
Thomas/Alternate
Electrical Utility
Director/Alternate
Russian River Watershed Association Rodin
Landis/Alternate
Sun House Guild ex officio liaison Thomas
Economic Development & Financing Corp.
(EDFC)
Landis
Rodin/Alternate
Redevelopment Dissolution Oversight Board Crane/ Landis alt. Roth/
Mills alt.
Ukiah Players Theater Sangiacomo
Page 6 of 6
12/21/2011
City of Ukiah Ad Hoc Committees 2012
COMMITTEE ASSIGNED TO
Public Advisory Committee (Courthouse) Rodin/Landis
Public Safety Baldwin/Thomas
Recycled Water Stakeholders Meetings Crane
Sales Tax Sharing Rodin/Baldwin
Strategic Planning Crane/Rodin
UVSD Governance Baldwin/Landis
By consensus, City Council accepted appointments.
f. Award Contract To Vaughn's Industrial Repair For The Repair Of Five 10" And
Four 16" Vertical Turbine Solid Handling Pumps And Approve Corresponding
Budget Amendment (was item 7b)
Director of Public Works/City Engineer Eriksen presented the item. Recommended
Action(s): Award contract to Vaughn's Industrial Repair for the repair of five 10" and
four 16" vertical turbine solid handling pumps in the amount of $102,041.05 and
approve corresponding budget amendment.
M/S Crane/Rodin to approve making the expenditure. Motion carried by the
following roll call votes: AYES: Thomas, Crane, Rodin, and Landis. NOES: None.
ABSENT: Baldwin. ABSTAIN: None.
Adjourned to Closed Session 9:05 pm.
14. CLOSED SESSION - Closed Session may be held at any time during the meeting a. Conference with Labor Negotiator (§ 54957.6)
Agency Representative: Jane Chambers, City Manager
Employee Organizations: Miscellaneous Unit, and Electric Unit
b. Conference with Legal Counsel -Existing Litigation
(Subdivision (a) of Gov't Code Section 54956.9)
Name of case: (Ukiah Valley Sanitation District v. City of Ukiah, dispute resolution
under Participation Agreement)
Reconvened in Open Session at 9:25 pm with no reportable action.
15. ADJOURNMENT There being no further business, the meeting adjourned at 9:25 pm
_____________________________
JoAnne M. Currie, City Clerk
ATTACHMENT 5
1
RESOLUTION NO. _______
RESOLUTION OF APPLICATION OF THE CITY COUNCIL OF
THE CITY OF UKIAH INITIATING PROCEEDINGS FOR A
DETACHMENT FROM THE UKIAH VALLEY SANITATION
DISTRICT (CITY AREA DETACHMENT)
WHEREAS:
1, Statutes promote the establishment of local governmental boundaries that are
logical, orderly and related to services provided by each local government; and
2. Parcels should be included within local agencies only when they will receive
services that benefit those parcels; and
3. Registered voters should be included within local governments only when they
receive services of benefit to those voters since to do otherwise diminishes the electoral
influence and voting power of registered voters who do receive services from those local
governments, and
4. The City of Ukiah desires to initiate a proceeding for the adjustment of
boundaries as specified herein;
NOW, THEREFORE, the City Council does hereby resolve and order as
follows:
1. This proposal is made, and it is requested that proceedings be taken,
pursuant to the Cortese/Knox/Hertzberg Local Government Reorganization Act of 2000,
commencing with section 56000 of the California Government Code.
2. This proposal is a detachment from the Ukiah Valley Sanitation District
(hereafter “District”).
3. A map of the affected territory is set forth in Exhibit A, attached hereto
and by reference incorporated herein.
4. It is desired that the proposal be subject to the following terms and
conditions to be imposed by the Local Agency Formation Commission pursuant to
Government Code section 56886:
A. Transfer of real property –Transfer to the City of all easements
and other interests in real property currently held by the District within the detachment
area that are part of its collection system serving the detachment area.
B. Transfer of physical assets - Transfer to the City all physical
assets comprising the District’s waste collection system within the detachment area.
ATTACHMENT 5
2
C. Sharing facilities and costs
(1) After the detachment is completed, the City and District shall
continue to share infrastructure and costs required to collect and treat wastewater
originating in the District and the City in accordance with the existing Participation
Agreement, dated July 19, 1995, as amended on March 24, 1999 (“Amendment No. 1”)
and December 15, 2004 (“Amendment No. 2”), between the City and the District and on
file in the office of the City Clerk of the City. As provided in recital 7 of Amendment No.
2, in 2006 the City commenced construction of a $75,060,000 project to reconstruct the
wastewater treatment plant that services the District and the City. (“WWTP Project.”)
The WWTP Project consisted of two related projects; a “Capacity Project” to increase the
capacity of the plant and an “Upgrade/Rehabilitation Project.” The Capacity Project
accounted for approximately 32% of the project cost. On March 1, 2006, the Association
of Bay Area Governments (“ABAG”) issued 2006 Water and Wastewater Revenue
Bonds, Series A (“WWTP Bonds”) pursuant to an Installment Sale Agreeement between
the City and ABAG, dated March 1, 2006 and on file with the City Clerk of the City. To
assure the repayment of the WWTP Bonds the City and the District entered a Financing
Agreement, dated March 2, 2006 and on file with the City Clerk of the City. Under the
Financing Agreement the District is required to pay a portion of the debt service on the
WWTP Bond as follows: (1) Capacity Project – 65%; (2) Upgrade/Rehabilitation Project
– in the same percentage as for its share of operational costs pursuant to Section 1 of the
Participation Agreement.
(2) Except as provided in subsection (3), below, the District shall
continue to pay its share of the debt service on the WWTP bonds for the
Upgrade/Rehabilitation Project in accordance with the Financing Agreement. That
percentage has been 53% City, 47% District, but the percentage for the District will
decrease and the percentage for the Ciity will increase substantially when the detachment
area is removed from the District. Those revised percentages shall be submitted by the
City Engineer to LAFCO prior final decision on the approval of the detachment.
(3) The District’s proportionate share of the Capacity Project was
fixed initiallty at 65% of the debt service for the WWTP bonds. That percentage shall be
modified from the current 65% to a fraction in which the denominator is 2400 Equivalent
Sewer Service Units (“ESSUs”), as defined in Section 1 of the Participation Agreement,
which is the number of EESUs resulting from the Capacity Project, and in which the
numerator is the number of those ESSUs already assigned to the District as a result of
new connections within the portion of the District outside the detachment area plus the
ATTACHMENT 5
3
number of ESSUs required by the District to satisfy the demand for new connections in
the reduced District territory and in the District’s sphere of influence. [More specific
dertails to be developed prior to acceptance of application by Executive Officer.]
D. Transfer of monetary assets – Upon completion of the
detachment, a proportionate share of District’s monetary assets, including cash on hand,
and all reserve funds, including the rate stabilization fund, shall be transferred to the City.
The proportion attributable to the detachment area is determined by multiplying all of
these funds by a fraction the denominator of which is the total revenue received by the
District in the five full fiscal years for which the City has audited financial statements
prior the effective date of the detachment, as disclosed in the City’s audited financial
statements, and the numerator of which is the amount of such revenue from the area
detached from the District. [Details and more specific requirements to be completed to
acceptance of the application by the Executive Officer.]
E. Change in property tax allocation factors – For the fiscal year
following completion of the detachment, and in subsequent fiscal years, the property tax
apportionment factors allocated to the District within the detachment area shall be
reapportioned to the City pursuant to the agreement between the City and the Mendocino
County Board of Supervisors, dated [date] pursuant to section 99 of the California
Revenue and Taxation Code.
F. Appropriations limit – Coincident with the detachment, the
District's Gann limit shall be reduced to $_____ and the City's Gann limit shall be
increased by that amount to reflect property tax reapportioned from the District to the
City pursuant to the agreement between the City and the District dated [date] pursuant to
section 99 of the California Revenue and Taxation Code. [Details to be included prior to
acceptance of application by LAFCO Executive Officer.]
5. Reasons for the proposal are to:
A. Eliminate an unnecessary and confusing overlap of boundaries
between the City of Ukiah and the District. None of the properties to be detached from
the District receive physical sanitary collection or disposal or billing services from the
District. The City already provides all of these services within the detachment area under
a Participation Agreement between the City and the District.
B. Eliminate existing and potential conflicts and inconsistencies
within City limits between fees and sewer service regulations adopted by the District
Board of Directors and the City Council.
ATTACHMENT 5
4
C. Promote the coordinated provision of urban services by a general
law city within its corporate boundaries.
D. Avoid imposing current and potentially future unnecessary and
duplicative costs of District administration on residents and property owners within the
area to be detached.
E. Reduce the potential for future conflicts over the payment of the
Wastewater Treatment Plant bonds .
6. It is requested that the District Sphere of Influence be modified to exclude
the territory being detached from the District.
PASSED AND ADOPTED by the City Council of the City of Ukiah on
_______, 2014, by the following roll call vote:
AYES:
NOES:
ABSTAIN:
ABSENT:
______________________________
Philip E. Baldwin, Mayor
ATTEST:
______________________
Kristine Lawler, City Clerk
ATTACHMENT 6
Justification of Proposal Revised: 11-5-14 Page 1 of 4
Mendocino
Local Agency Formation Commission
200 South School Street Suite F Ukiah CA 95482
707-463-4470 www.mendolafco.org
JUSTIFICATION OF PROPOSAL
Please complete the following information to process an application under the Cortese-Knox-Hertzberg
Local Government Reorganization Act of 2000:
(Indicate N.A. if Not Applicable)
---------------------------------------------------------------------------------------------------------------------------------------
SHORT TITLE: City of Ukiah – Ukiah Valley Sanitation District Detachment Project
TYPE OF PROPOSAL: Detachment
AGENCY CHANGES RESULTING FROM THIS PROPOSAL
• Agency or Agencies gaining territory: N/A
• Agency or Agencies losing territory: Ukiah Valley Sanitation District
NOTIFICATION
Please indicate the names, addresses and telephone numbers of all Applicants, Applicant’s Agents, and
all affected Agencies who are to receive the hearing notice and the Executive Officer’s Report:
Name Mailing Address Telephone Email
Charley Stump 300 Seminary Avenue, Ukiah, CA 95482 707-463-6219 cstump@cityofukiah.com
David Rapport 405 W Perkins Street, Ukiah, CA 95482 707-462-6846 drapport@pacbell.net
Tim Eriksen 300 Seminary Avenue, Ukiah, CA 95482 707-463-6280 teriksen@cityofukiah.com
Jane Chambers 300 seminary Avenue, Ukiah, CA 95482 707-463-621 jchambers@cityofukiah.com
Bob Braitman 8277 Cheshire Street, Ventura, CA 93004 805-647-7612 bob@braitmanconsulting.com
Michael Colantuono 11364 Pleasant Valley Road, Penn Valley, CA 95946 530-432-7357 mcolantuono@chwlaw.us
Frank McMichael 151 Laws Avenue, Ukiah, CA 95482 707-462-4429 dm@uvsd.org
PROJECT INFORMATION Please provide project-related information for the following questions:
1. Do the proposed boundaries create an island of non-agency territory? [ ] Yes [X] No
2. Do the proposed boundaries split lines of assessment or ownership? [ ] Yes [X] No
3. Does the proposal involve public rights-of-way or easements? [X] Yes [ ] No
4. Does the proposal involve public land or land assessed by the State? [ ] Yes [X] No
ATTACHMENT 6
Justification of Proposal Revised: 11-5-14 Page 2 of 4
5. Does any part of the proposal involve land under a Williamson Act [ ] Yes [X] No
Contract or Farmland Security Zone?
6. Does any part of the proposal involve land with a Wildlife/Habitat [ ] Yes [X] No
Easement or Agricultural Land Conservation Easement?
7. List the affected Assessor Parcel Numbers, Owners of Record and Parcel Sizes:
(See attached list)
8. Physical Location of Proposal: (See attached map)
9. Has an application been filed for an underlying project (such as Development Plan,
Conditional Use Permit, or Tentative Subdivision Map)? [ ] Yes [X ] No
If Yes, please attach a Project Site Plan or Tentative Subdivision Map. N/A
If No, please provide an estimate of when development will occur: N/A
10. List those public services or facilities which will be provided to the affected territory as a result
of the proposed action:
There will no change in existing public services or facilities
11. Indicate which of these services or facilities will require main line extensions or facility up-
grades in order to serve the affected territory: N/A
12. Provide any other justification that will assist the Commission in reviewing the merits of this
request.
The proposed detachment will:
• Eliminate an unnecessary and confusing overlap of boundaries between the City of Ukiah
and the District within the detachment area. None of the properties to be detached from
the District receive physical sanitary collection or disposal or billing services from the
District. The City provides these services under a Participation Agreement with the
District, dated July 19, 1995.
• Eliminate existing and potential future conflicts and inconsistencies within City limits
between fees and sewer service regulations adopted by the District Board of Directors
and the City Council.
• Promote the coordinated provision of urban services by a general law city within its
corporate boundaries.
• Avoid imposing unnecessary and duplicative costs of District administration on City
residents in the area to be detached.
• Reduce the potential for future conflicts over the payment of more than $75 Million in
bonds (“WWTP bonds”) issued to upgrade and expand the City owned wastewater
treatment plant.
• Allow property taxes currently allocated to the District within the detachment area and
used solely to fund sewer services to be reallocated to support property tax dependent
governmental services t such as law enforcement, fire prevention and protection and local
parks and recreation to benefit the residents and landowners within the detachment area
ATTACHMENT 6
Justification of Proposal Revised: 11-5-14 Page 3 of 4
who are also all City residents and landowners. Funding fee-supported services like sewer
collection and disposal services from property taxes is not good public policy as it
encourages overconsumption of the service and limited property tax dollars should be
devoted to essential services to property which cannot be fee-funded, like police and fire
services
INDEMNIFICATION AGREEMENT
As part of this application, applicant and real property in interest, if different, agreed to defend,
indemnify, hold harmless, and release the Mendocino Local Agency Formation Commission, its
agents, officers, attorneys, and employees from any claim, action, or proceeding brought against any
of the above, the purpose of which is to attack, set aside, void, or annul the approval of this application
or adoption of the environmental document which accompanies it. This indemnification obligation shall
include, but not be limited to, damages, costs, expenses, attorney’s fees, or expert witness fees that
may be asserted by any person or entity, including the applicant, arising out of or in connection with
the approval of this application, whether or not there is concurrent passive or active negligence on the
part of the Mendocino Local Agency Formation Commission, its agents, officers, attorneys, or
employees.
Executed at ___________________________, California, on the ___ day of______________, 2013.
APPLICANT City of Ukiah REAL PARTY IN INTEREST N/A
(If different from Applicant)
Signature: __________________________ Signature: _________________________
Title: City Manager______________________________ Title: _____________________________
-------------------------------------------------------------------------------------------------------------------------------------
SUBMITTALS – See the following notations
In order for this application to be processed, the following information needs to be provided:
1. Two copies of this Justification of Proposal, completed and signed with original signatures;
Enclosed
2. Five prints of a full-scale proposal map showing the affected territory and its relationship to
the affected jurisdiction (and prepared to State Board of Equalization specifications);
Enclosed
3. Five copies of an 8.5” x 11” or 11” x 17” reduction of the proposal map; Enclosed
4. Three copies of a metes and bounds description of the affected territory; City will prepare
metes and bounds maps of each of the blue areas to attach to his Commission’s
resolution of approval but that it doesn’t want to spend the large amount of public
money to prepare such maps and legal descriptions until the proposal is approved
by the Commission.
5. One certified copy of the City Council and/or Special District Board of Directors Resolution of
Application; or a petition making application to LAFCo (as appropriate); Enclosed
6. Written permission from each affected property owner (or signature form); Not provided; we
do not have written consent of all property owners. Public hearing is necessary
7. One copy of the project environmental document (One Compact Disc if more than 25 pages);
This detachment is exempt from CEQA – Class 20 which consists of changes of
ATTACHMENT 6
Justification of Proposal Revised: 11-5-14 Page 4 of 4
organization where the change does not change the geographical area in which
previously existing powers are exercised.
8. One copy of the project Notice of Determination; N/A
9. Three 8.5” x 11” copies of the Vicinity Map (if not included on the proposal map); With
regard to the items 10 through 16 below the questions are not applicable to this
proposal. There is no proposed change in land use or public service delivery
proposed or resulting from this detachment.
10. One copy of the plan for providing services along with a schematic diagram of water, sewer
and storm drainage systems (refer to Government Code Section 56653); N/A
11. One copy of the Pre-Zoning map or description (as required by Section 56375); N/A
12. One copy of the Statement of Open Space (Ag) Land Conversion (refer to Section 56377);
N/A
13. One Copy of the Statement of Timely Availability of Water Supplies (refer to Section 56668(k);
N/A
14. One copy of the Statement of Fair Share Housing Needs (if residential land uses are included
in the proposal) (refer to Section 56668(l)); N/A
15. One copy of the project design (site plan, development plan, or subdivision map); N/A
16. One copy of the Residential Entitlement matrix form (if residential land uses are included in
the proposal); and N/A
17. Filing and processing fees in accordance with the LAFCo Fee Schedule and the State Board
of Equalization Fee Schedule. Enclosed
CERTIFICATION
The undersigned hereby certifies that all LAFCo filing requirements will be met and that the
statements made in this application are complete and accurate to the best of my knowledge.
_________________________________________ Date: ___________________________
(Signature)
Print or Type Name:_________________________ Daytime Telephone: _________________