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Home My WebLink About2014-43 CC Reso - Initiating Proceedings for Detachment from UVSD I RESOLUTION NO. 2014-43 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 I 2. Parcels should be included within local agencies only when they will receive services that benefit I 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 I power of registered voters who do receive services from those local govemments, 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. I 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 i incorporated herein. 4. It is desired that the proposal be subject to the following terms and conditions to be imposed by I 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. G Sharing facilities and costs –d � I (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 I I 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 i i I � — i commenced construction of a $75,060,000 project to reconstruct the wastewater ' treatment plant that services the District and the City. ("WWTP Project.") The WWfP , Project consisted of two related projects; a "Capacity ProjecY' to increase the capacity of the plant and an "Upgrade/Rehabilitation Project." The Capacity Project accounted i for approximately 32% of the project cost. On March 1, 2006, the Association of Bay I Area Govemments ("ABAG') issued 2006 Water and Wastewater Revenue Bonds, Series A ("WVVfP Bonds") pursuant to an Installment Sale Agreeement between the I City and ABAG, dated March 1, 2006 and on file with the City Clerk of the City. To assure the repayment of the WWfP 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 VWVfP 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 I of the debt service on the WVVfP 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 DistricYs proportionate share of the Capacity Project was fixed initiallty at 65% of the debt service for the UVWfP bonds. That percentage shall be modified from the I I 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 number of ESSUs required by the District to satisfy the demand for new connections in the reduced ' District territory and in the DistricYs sphere of influence. [More specific dertails to be developed prior to acceptance of application by Executive Officer.� D. Trensfer of monetary assets — Upon completion of the detachment, a proportionate share , of DistricYs 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 II 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. I I 2 i F. Appropriations limit — Coincident with the detachment, the DistricYs Gann limit shall be i 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 I ' Taxation Code. [Details to be included prior to acceptance of application by LAFCO Executive Officer.] 5. Reasons for the proposal are to: I 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 j Iand sewer service regulations adopted by the District Board of Directors and the City Council. 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 I detached from the District. PASSED AND ADOPTED by the City Council of the City of Ukiah on November 5 , 2014, by i the following roll call vote: AYES: Counciimembers Scalmanini, Crane, Thomas, Landis, and Mayor Baldwin NOES: None ABSTAIN: N�ne � ABSENT: None � � %' I U Philip E. B��dwin, Mayor �/ ATTEST: i Ci. �,��1/ � � ��I,�� L �I. � ' � ristine Lawler, City Clerk 3 I I I __ _ _ _ ¢ �- m = N i w �' " � ._ J � ' '' i re�N'��I. 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