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HomeMy WebLinkAbout2015-08-19 packet - without 12d attachments 1 & 2Page 1 of 3 CITY OF UKIAH CITY COUNCIL AGENDA Regular Meeting CIVIC CENTER COUNCIL CHAMBERS 300 Seminary Avenue Ukiah, CA 95482 August 19, 2015 6:00 p.m. 1. ROLL CALL 2. PLEDGE OF ALLEGIANCE 3. PROCLAMATIONS/INTRODUCTIONS/PRESENTATIONS a. Proclamation and Presentation: National Health Center Week, August 9-15, 2015. b. Presentation: Retirement of Police Canine, Daisy. 4. PETITIONS AND COMMUNICATIONS 5. APPROVAL OF MINUTES a. Minutes of July 29, 2015, a Special Meeting b. Minutes of August 5, 2015, 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. Report of Disbursements for the Month of July. b. Notification of Purchase of a Police Dual Trained – Protection and Narcotics Canine from Golden Gate K9, LLC, in the Amount of $17,243.75 Utilizing Police Asset Forfeiture Funds. c. Adoption of Resolution Designating Human Resources Sr. Management Analyst as Alternate Director to the Redwood Empire Municipal Insurance Fund’s (REMIF) Board of Directors. Page 2 of 3 8. AUDIENCE COMMENTS ON NON-AGENDA ITEMS The City Council welcomes input from the audience. If there is a matter of business on the agenda that you are interested in, you may address the Council when this matter is considered. If you wish to speak on a matter that is not on this agenda, you may do so at this time. In order for everyone to be heard, please limit your comments to three (3) minutes per person and not more than ten (10) minutes per subject. The Brown Act regulations do not allow action to be taken on audience comments in which the subject is not listed on the agenda. 9. COUNCIL REPORTS 10. CITY MANAGER/CITY CLERK REPORTS 11. PUBLIC HEARINGS (6:15 PM) 12. UNFINISHED BUSINESS a. Award Construction Contract for Grace Hudson Museum Building Improvements Spec No. 15-08. b. Award Construction Contract for Grace Hudson Museum Parking and Storm Water Improvements Spec No. 15-09. c. Update Regarding Proposed Amendments to Professional Services Agreements with GHD, Inc. in an Amount not to Exceed $8,318 for Construction Management and Inspection Services, and in an Amount not to Exceed $24,967 for Re-Design of Construction Documents, for the Northwestern Pacific Rail Trail Project Phase 1, Specification No. 14-01. d. Discussion and Consideration of Adoption the Fiscal Year 2015-2016 Budget, Capital Improvement Plan and Cost Allocation Plan. 13. NEW BUSINESS a. Adoption of Resolution Making Appointments to the Paths, Open Space and Creeks Commission (POSCC) and the Parks, Recreation and Golf Commission (PRGC). b. Introduction of Ordinance by Title Only to Give Citation Authority to Community Services Officers and Other City Employees Designated by the City Manager or City Council Resolution to Enforce Specified City Ordinances or State Laws. c. Adopt Resolution Approving Application for Grant Funds for the California Cultural and Historical Endowment Museum Grant Program for the Grace Hudson Cultural Center. d. Award Purchase of 2016 Digger Derrick Line Truck to Altec Industries Western Division in the Amount of $360,305.33 and Authorize Corresponding Budget Authorization for Fiscal Year 2015-2016 (EUD). e. Retention of Steven Mitchell and Geary, Shea, O’Donnell, Grattan & Mitchell as Trial Counsel in Ukiah Valley Sanitation District v. City of Ukiah and Corresponding Budget Authorization for Fiscal Year 15/16. Page 3 of 3 14. CLOSED SESSION – Closed Session may be held at any time during the meeting a. Conference with Legal Counsel – Existing Litigation (Cal. Gov’t Code Section 54956.9(d)(1)) Name of case: City of Ukiah v. Questex, LTD, et al, Mendocino County Superior Court, Case No. SCUK- CVPT -15-66036 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 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 14th day of August, 2015. Kristine Lawler, City Clerk Agenda Item 3a PROCLAMATION “Recognition of August 9-15, 2015 as National Community Health Center Week” WHEREAS, the members of the Alliance for Rural Community Health provide comprehensive care to members of our community regardless of ability to pay; and WHEREAS, Community Health Centers in Mendocino County serve more than 83% of those in their communities; and WHEREAS, two of our County’s Community Health Centers are the principle health care providers within the City of Ukiah; and WHEREAS, these Community Health Centers provide high quality, patient-centered health care with the focus on prevention and patient engagement to personalize care; and WHEREAS, Ukiah’s Community Health Centers provide a wide range of services which include medical, dental, psychiatric, behavioral health, perinatal and specialty care; and WHEREAS, in 2014 Hillside Health Center in Ukiah provided over 17,200 individuals who live, work and play in the Greater Ukiah area with 84,100 health encounters and, of the individuals served, approximately 53% live at or below the federal poverty level. NOW, THEREFORE, BE IT RESOLVED, that the Ukiah City Council, hereby proclaims and recognizes the valuable contribution our Community Health Centers make in improving the health and future well-being of the citizens of the Greater Ukiah Area by recognizing their contribution during this week and proclaims August 9 - 15, 2015 as: “National Community Health Center Week” Signed and sealed, this 19th day of August in the year Two Thousand and Fifteen. _______________________________ Douglas F. Crane, Mayor Page 1 of 3 CITY OF UKIAH CITY COUNCIL AGENDA Special Meeting Ukiah Valley Conference Center 200 S. School Street Ukiah, CA 95482 July 29, 2015 3:00 p.m. 1.ROLL CALL Ukiah City Council met at a Special Meeting on July 29, 2015, having been legally noticed on July 24, 2015. Mayor Crane called the meeting to order at 3:14 p.m. Roll was taken with the following Councilmembers Present: Maureen Mulheren, Kevin Doble, Jim O. Brown, Vice Mayor Scalmanini and Mayor Crane. Staff Present: Sage Sangiacomo, City Manager; Karen Scalabrini, Finance Director; Charley Stump, Planning and Community Development Director; Chris Dewey, Police Chief; Greg Owen, Airport Manager; Mel Grandi, Electric Utilities Director; John Bartlett, Fire Chief; Melody Harris, Human Resources Director; Tim Eriksen, Public Works Director; and Kristine Lawler, City Clerk. MAYOR CRANE PRESIDING. 3.PUBLIC COMMENT Presenter: Nancy J. Parker expressed her views regarding a roundabout, and submitted a handout detailing her concerns. 2.WORK STUDY SESSION a.Review and Discuss the City Council’s Strategic Plan and Process. Presenter: Sage Sangiacomo, City Manager Mayor Crane and City Manager Sangiacomo gave an overview of the Strategic Planning process, asking Council how they would like to move forward. At the request of Mayor Crane, the staff and audience gave their perspective and input of the process. Jeff Trouette, a public citizen, expressed that he would prefer to see high level city staff take on the strategic planning meeting leadership and not spend money on a facilitator, and encouraged the Council to stick to the goals or take them off the table. Pinky Kushner, a public citizen, proposed to use the four strategic planning areas that were previously developed - Strategy 1: Maintain downtown historic place as a regional center of civic and economic activity. Strategy 2: Planning Valley-Wide takes place based on sound planning principles. Strategy 3: Develop a prioritize plan for maintaining and improving public infrastructure. Strategy 4: Council and staff work together to create a more responsive and effective workplace environment. Agenda Item 5a City Council Minutes for July 29, 2015, Continued: Page 2 of 3 - as a framework to move forward by reviewing the status and options of each area. Mayor Crane polled the Council who unanimously concurred, with Vice Mayor Scalmanini and Councilmember Brown requesting that additional items be added. Councilmember Doble suggested combining attachment 1 (Strategic Planning reflection Process, January 11, 2010) with Attachment 3 (Strategic Planning Session, November 2010, City of Ukiah); showing the history, evidence of what is working verses what needs to be done, and detailing the costs associated with the projects along with how long the process will take. City Manager Sangiacomo added ‘identifying what may be missing’ to Councilmember Doble’s list. He suggested that staff create an initial draft that he will bring to the Strategic Planning Ad Hoc Committee, whom he would also work with to create a meeting format and outline. Council had consensus to continue the Strategic Planning meetings on the fifth Wednesdays that occur throughout the year, setting the next meeting date for September 30, 2015. Councilmember Doble requested that the packets be issued to Council two weeks prior to the meeting. Additional Council direction to staff included: Providing an updated Strategic Plan to coincide with the budget review so as to inform Council on how to prioritize budget items; create a webpage for the Strategic Planning process in addition to other channels available to the public; collect public input ahead of the meeting and include with the agenda packet for Council consideration. Susan Knopf, a public citizen, suggested that Strategic Planning sessions could also be announced in the newspaper and on the radio. b. Review and Provide Direction Regarding the Revised Draft Capital Improvement Plan for Fiscal Year 2015-2016. Presenter: Karen Scalabrini, Finance Director. Director Scalabrini gave an overview of the budget process and documents to date, explaining changes, additions, and informative elements. Referring to updated budget calendars that were distributed for both Operations and Capital Improvements, Director Scalabrini said that the Operations budget is due to Council for review and feedback on August 12–19, adding that Council will have the option to adopt the budget on the 19th, or can have an additional work session after that meeting and then conduct a Special Meeting on August 26th for budget adoption. In regards to the Capital Improvements budget, City Manager Sangiacomo added that Council may place a hold on any project pending additional analysis, and approve the rest of the budget. Director Scalabrini requested direction in respect to the budget document, and the Council gave the following input: • Place an asterisk (*) next to items that have restricted funds and then place a footnote at the bottom of the page detailing their restrictions. • Give a summary of the history of the project. • Add a line item for street improvements. • Add a line item for pedestrian safety improvements. Public comment included: Mark Hilliker asked for clarification on the driving force behind the roundabout concept; Justine Frederickson asked for the reasoning behind the Orr Creek Bridge project; and Susan Knopf expressed her views that the Orr Creek Street Bridge should be discussed in public with plenty of advance notice. Ms. Knopf also expressed her preference to see objects being removed from the sidewalks (i.e. phone polls, fire hydrants, no parking signs, utility City Council Minutes for July 29, 2015, Continued: Page 3 of 3 monuments, etc…) than more crosswalks. City Manager Sangiacomo acknowledged the need to prioritize a discussion related to sidewalks regarding whose responsible and identifying the standards. He added that the fleet justification sheets have been updated and will be included as an appendix to the capital improvements document, and would be distributed to Council for review. Additionally City Manager Sangiacomo recognized the Council’s request to: • Look for funding opportunities through the Mendocino Council of Governments (MCOG); and • Identify a process review for prioritizing capital improvement projects. 4. ADJOURNMENT Mayor Crane determined that there was no further business, and the meeting was adjourned at 5:55 p.m. ________________________________ Kristine Lawler, City Clerk Agenda Item 5b Page 1 of 5 CITY OF UKIAH CITY COUNCIL MINUTES Regular Meeting CIVIC CENTER COUNCIL CHAMBERS 300 Seminary Avenue Ukiah, CA 95482 August 5, 2015 6:00 p.m. 1.ROLL CALL Ukiah City Council met at a Regular Meeting on August 5, 2015, having been legally noticed on July 30, 2015. Mayor Crane called the meeting to order at 6:01 p.m. Roll was taken with the following Councilmembers Present: Maureen Mulheren, Kevin Doble, Jim O. Brown, Vice Mayor Scalmanini and Mayor Crane. Staff Present: Sage Sangiacomo, City Manager; David Rapport, City Attorney; and Kristine Lawler, City Clerk. MAYOR CRANE PRESIDING. 2.PLEDGE OF ALLEGIANCE 3.PROCLAMATIONS/INTRODUCTIONS/PRESENTATIONS a.Presentation: Observatory Park. Presenter: Martin Bradley, Community Services Assistant. 4.PETITIONS AND COMMUNICATIONS 5.APPROVAL OF MINUTES a.Minutes of July 15, 2015, a Regular Meeting. Motion/Second: Mulheren/Doble to approve the minutes of July 15, 2015, a Regular Meeting, as submitted. Motion carried by the following roll call votes: AYES: Mulheren, Doble, Brown, Scalmanini, and Crane. NOES: None. ABSENT: None. ABSTAIN: None. 6.RIGHT TO APPEAL DECISION 7.CONSENT CALENDAR a.Adoption of an Ordinance Amending, Section 1001 in Division 1, Chapter 4, Article 1 of the Ukiah City Code to Reduce the Parks, Recreation and Golf Commission (PRGC) from Seven Members to Five Members and to Make Them All At-Large Members – Community Services. ORDINANCE NO. 1159 ORDINANCE OF THE CITY COUNCIL OF THE CITY OF UKIAH AMENDING SECTION 1001 IN DIVISION 1, CHAPTER 4, ARTICLE 1 OF THE UKIAH CITY CODE ENTITLED, “PARKS, RECREATION, AND GOLF COMMISSION” b.Authorize the City Manager to Execute an On-Call Services Contract for Park Planning, Design and Operation Consultant Services with Gates + Associates – Community Services. Pulled by Councilmember Mulheren and placed as Agenda Item 13f. City Council Minutes for August 5, 2015, Continued: Page 2 of 5 c. Award of Contract (COU No. 1516-090) to West Yost Associates for Preparation of the 2015 Urban Water Management Plan in the Amount of $63,202 and Authorize Corresponding Budget Authorization for Fiscal Year 2015-2016 – Public Works. Motion/Second: Brown/Doble to approve Consent Calendar Items 7a and c, as submitted. Motion carried by the following roll call votes: AYES: Mulheren, Doble, Brown, Scalmanini, and Crane. NOES: None. ABSENT: None. ABSTAIN: None. 8. AUDIENCE COMMENTS ON NON-AGENDA ITEMS Presenter: Phil Baldwin. 9. COUNCIL REPORTS Presenter: Councilmember Doble. 10. CITY MANAGER/CITY CLERK REPORTS Presenters: Sage Sangiacomo, City Manager; David Rapport, City Attorney; Tim Eriksen, Public Works Director; Charley Stump, Planning and Community Development Director; and David Willoughby, Building Official. Public Comment: Phil Baldwin. 11. PUBLIC HEARINGS a. Consider Approving an Application to Demolish (Remove Over 50% of Exterior Siding Material) a Structure Over 50 Years Old Located at 204 South Bush Street. Presenters: Charley Stump, Planning and Community Development Director and David Willoughby, Building Official. OPEN PUBLIC HEARING 7:00 P.M. No public comment was received. CLOSED PUBLIC HEARING 7:01 P.M. Motion/Second: Scalmanini/Brown to find that the structure, located at 204 South Bush Street, does not meet the City Code criteria for historic or architectural significance; and to approve the Demolition Permit. Motion carried by the following roll call votes: AYES: Mulheren, Doble, Brown, Scalmanini, and Crane. NOES: None. ABSENT: None. ABSTAIN: None. 12. UNFINISHED BUSINESS a. Approval of Amendments to Professional Services Agreements with GHD, Inc. in an Amount not to Exceed $8,318 for Construction Management and Inspection Services, and in an Amount not to Exceed $24,967 for Re-Design of Construction Documents, for the Northwestern Pacific Rail Trail Project Phase 1, Specification No. 14-01, and Approval of Corresponding Budget Authorization for FY 15/16 – Public Works. Presenter: Tim Eriksen, Public Works Director. Motion/Second: Brown/Doble to continue this item to the next City Council meeting scheduled for August 19, 2015. Motion carried by the following roll call votes: AYES: Mulheren, Doble, Brown, Scalmanini, and Crane. NOES: None. ABSENT: None. ABSTAIN: None. City Council Minutes for August 5, 2015, Continued: Page 3 of 5 b. Consideration of Request to Utilize Eight Public Parking Spaces for a Tesla Motors Electric Vehicle Supercharging Station – Administration. Presenter: Shannon Riley, Program and Grant Administrator. Staff Comment: Mel Grandi, Electric Utility Director. Public Comment: Chris Watt and Mark Hilliker. Motion by Councilmember Brown to take the negotiation with Tesla off the table. Motion dies for lack of a second. Motion/Second: Scalmanini/Doble to agree to the stated location. Motion carried by the following roll call votes: AYES: Doble, Scalmanini, and Crane. NOES: Mulheren and Brown. ABSENT: None. ABSTAIN: None. Motion/Second: Scalmanini/Doble to agree to a contract which allows for the construction of eight (8) super charging stations; two (2) of which would be exclusive to Tesla and six (6) would include a 2-hour parking limit with a trigger point - 8:00 – 5:00, Monday through Friday - to increase the two (2) exclusive stations by two (2) additional exclusive stations at a time, with a maximum of eight (8) stations; requesting Tesla to provide four (4) universal stations to the City; and authorize the City Manager to negotiate and execute the agreement. Motion carried by the following roll call votes: AYES: Doble, Scalmanini, and Crane. NOES: Mulheren and Brown. ABSENT: None. ABSTAIN: None. c. Update on Progress to Include Food Waste in the Green Waste Stream – Public Works. Presenter: Tim Eriksen, Public Works Director. Public Comment: Phil Baldwin. Report was received. RECESS: 8:56 – 9:07 P.M. 13. NEW BUSINESS a. Consider Adopting a Resolution Approving the Doolin Creek Restoration and Enhancement Plan – Planning and Community Development. Presenter: Charley Stump, Planning and Community Development Director. Public Comment: Linda Sanders (speaking as a private citizen), Chris Watt, Paths, Open Space and Creeks Commission (POSCC) Chair. Motion/Second: Doble/Brown to adopt the Resolution (2015-29) approving the Doolin Creek Restoration and Enhancement Plan. Motion carried by the following roll call votes: AYES: Mulheren, Doble, Brown, Scalmanini, and Crane. NOES: None. ABSENT: None. ABSTAIN: None. b. Adoption of Resolution Appointing Megan Elliott Parker to the Paths, Open Space and Creeks Commission – City Clerk. Presenter: Kristine Lawler, City Clerk. City Council Minutes for August 5, 2015, Continued: Page 4 of 5 Nomination by Vice Mayor Scalmanini to appoint Megan Elliott Parker to the Paths, Open Space and Creeks Commission. Motion/Second: Doble/Mulheren to adopt the Resolution (2015-30) approving the nomination and appointing Megan Elliott Parker to the Paths, Open Space and Creeks Commission as a City Sphere of Influence resident representative. Motion carried by the following roll call votes: AYES: Mulheren, Doble, Brown, Scalmanini, and Crane. NOES: None. ABSENT: None. ABSTAIN: None. c. Approve Plans and Specifications for the North State Street Sewer Main Improvement Project, Specification No. 14-04 and Direct Staff to Advertise for Bids. – Public Works. Presenter: Tim Eriksen, Public Works Director. Motion/Second: Scalmanini/Brown to approve plans and specifications for the North State Sewer Main Improvement Project, Specification No. 14-04, with modifications as discussed, and direct staff to advertise for bids. Motion carried by the following roll call votes: AYES: Mulheren, Doble, Brown, Scalmanini, and Crane. NOES: None. ABSENT: None. ABSTAIN: None. d. Consideration of Draft Development Fee Deferral Program and Direction Regarding Implementation – Administration. Presenter: Shannon Riley, Program and Grant Administrator. Motion/Second: Scalmanini/Brown to direct Staff to finalize and implement the Development Fee Deferral Program as presented. Motion carried by the following roll call votes: AYES: Mulheren, Doble, Brown, Scalmanini, and Crane. NOES: None. ABSENT: None. ABSTAIN: None. e. Discussion and Consideration of a Request to Support Senate Bill SB-350, Clean Energy and Pollution Reduction Act of 2015 – Electric Utility. Presenter: Mel Grandi, Electric Utility Director. Motion/Second: Brown/Doble to authorize the Mayor to sign a letter of support for Senate Bill SB- 350, Clean Energy and Pollution Reduction Act of 2015, with stated modifications. Motion carried by the following roll call votes: AYES: Mulheren, Doble, Brown, Scalmanini, and Crane. NOES: None. ABSENT: None. ABSTAIN: None. f. Authorize the City Manager to Execute an On-Call Services Contract for Park Planning, Design and Operation Consultant Services with Gates + Associates – Community Services – From Consent Calendar Item 7b. Presenter: Maya Simmerson, Community Services Director. Motion/Second: Mulheren/Doble to authorize the City Manager to execute a five-year on-call contract (COU No. 1516-091) with the option to renew for an additional term of up to five years, subject to mutually agreeable pricing modifications and service performance, with Gates + Associates for Park Planning, Design, and Operation Consultant Services. Motion carried by the following roll call votes: AYES: Mulheren, Doble, Brown, Scalmanini, and Crane. NOES: None. ABSENT: None. ABSTAIN: None. THE CITY CONCIL ADJOURNED TO CLOSED SESSION AT 10:03 P.M. City Council Minutes for August 5, 2015, Continued: Page 5 of 5 14. CLOSED SESSION a. Conference with Legal Counsel – Anticipated Litigation Significant exposure to litigation pursuant to Cal. Gov’t Code Section 54956.9(d)(2) Number of potential cases (1) b. Conference with Legal Counsel – Existing Litigation (Cal. Gov’t Code Section 54956.9(d)(1)) Name of case: City of Ukiah v. Questex, LTD, et al, Mendocino County Superior Court, Case No. SCUK- CVPT -15-66036 c. Conference with Legal Counsel – Existing Litigation (Cal. Gov’t Code Section 54956.9(d)(1)) Name of case: Ukiah Citizens for Safety First v. City of Ukiah, Mendocino County Superior Court, Case No. SCUKCVPT 14-63579 d. 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 No action was taken on Closed Session items. 15. ADJOURNMENT There being no further business, the meeting adjourned at 10:38 p.m. ________________________________ Kristine Lawler, City Clerk ATTACHMENT 1 FILE SAVED AS SEPARATE DOCUMENT ATTACHMENT 2 FILE SAVED AS SEPARATE DOCUMENT COST ALLOCATION PLAN Fiscal Year 2015-16 City of Ukiah Attachment 3 TABLE OF CONTENTS INTRODUCTION Overview Purpose of the Plan 1 Indirect Cost Allocation Strategies 1 Determining Direct and Indirect Costs 2 Allocating Indirect Costs 3 Uses of the Cost Allocation Plan 4 Plan Preparation 5 Summary 5 INDIRECT COST ALLOCATIONS Summary Schedules Summary of Direct and Indirect Costs (Table 1) 6 Basis of Indirect Cost Allocations (Table 2) 7 Summary of Indirect Cost Allocations for Central Services (Table 3) 7 Indirect Cost Allocations by Program City Council (Table 4.0) 8 City Clerk (Table 4.1) 9 City Manager (Table 4.2) 10 Administrative Support (Table 4.3) 11 Miscellaneous General Government (Table 4.4) 12 Finance- Accounting (Table 4.5) 13 City Attorney (Table 4.6) 14 Treasury Management (Table 4.7) 15 Human Resources/ Risk Management (Table 4.8) 16 Internal Service Fund Allocations Insurance (Table 5.0-5.1) 17 Building Maintenance & Corporation Yard (Tables 5.2-5.4) 19 Garage (Table 5.5) 22 Dispatch (Table 5.6) 23 Purchasing (Table 5.7) 24 Billing & Collections (Table 5.8) 25 Information Technology (Table 5.9) 26 Appendix Corporation Yard Diagram 27 INTRODUCTION OVERVIEW Purpose of the Plan The purpose of the City’s Cost Allocation Plan is to identify the total costs of providing specific City services. Why is a separate cost accounting analysis required to do this? Because in almost all organizations—whether in the private or the public sector—the cost of producing goods or delivering services can be classified into two basic categories: direct and indirect costs. “Direct costs” by their nature are usually easy to identify and relate to a specific service. However, this is not the case for “indirect costs.” As such, if we want to know the “total cost” of providing a specific service, then we need to develop an approach—a plan—for reasonably allocating indirect costs to direct cost programs. What Are Direct and Indirect Costs? Direct costs are those that can be specifically identified with a particular cost objective, such as street maintenance, police protection and water service. Indirect costs are not readily identifiable with a direct operating program, but rather, are incurred for a joint purpose that benefits more than one cost objective. Common examples of indirect costs include accounting, purchasing, legal services, personnel administration and building maintenance. Although indirect costs are generally not readily identifiable with direct cost programs, their cost should be included if we want to know the total cost of delivering specific services. Budgeting and Accounting for Indirect Costs. Theoretically, all indirect costs could be directly charged to specific cost objectives; however, practical difficulties generally preclude such an approach for organizational and accounting reasons. As such, almost all organizations separately budget and account for direct and indirect costs at some level depending on their financial reporting needs and the complexity of their operations. Distributing Indirect Costs. In order to determine the total cost of delivering specific services, some methodology for determining and distributing indirect costs must be developed, and that is the purpose of cost allocation plans: to identify indirect costs and to allocate them to benefiting direct cost programs in a logical, consistent and reasonable manner. Plan Goal: Reasonable Allocation of Costs. It is important to stress that the goal of the Cost Allocation Plan is a reasonable allocation of indirect costs, not a “perfect” one. By their very nature, indirect costs are difficult to link with direct costs. As such, in developing an allocation approach, it is important to keep this goal in mind balancing the cost and of effort of complicated allocation methods with the likely benefits from the end results. Indirect Cost Allocation Strategies There are several ways of allocating indirect costs, including: Internal Service Funds. Many cities allocate costs through formal internal service funds for services like printing, information technology, fleet maintenance and insurance. Typically with this approach, the internal service fund provides services to the organization and charges back for departments based on their actual - 1 - INTRODUCTION City Internal Service Funds • Insurance • Building Maintenance & Corporation Yard • Garage • Dispatch • Purchasing • Billing & Collections • Information Technology usage of the service and standard per unit billing rates, like a private company would (except the goal is to break even rather than earn a profit). In this case, for the operating programs, indirect costs become direct costs, like they would if they contracted-out for the service. While this approach can result in added accounting costs to develop internal billing rates and track actual usage, it has the advantage of encouraging more efficient use of internal services by allocating costs based on actual usage, setting aside funds for long-term capital replacement needs (or in the case of insurance, adequate reserves) and helping measure performance. As shown in the side bar, the City uses seven internal service funds to allocate organization-wide support costs. Payroll Allocations. Some organizations allocate percentages of key support staff to selected funds through direct payroll allocations, such as 15% of the City Manager to the Water Fund or 20% of the Public Works Director to the Wastewater Fund, with direct cost distributions of non-staffing costs via accounts payable where possible. While this practice is not uncommon, it has some conceptual drawbacks, such as the basis for the percentage allocations. One of the advantages of cost allocation plans is that the basis for the allocation is clear. Even where internal service funds are used, cost allocation plans are still often needed in allocating indirect costs to the internal service funds (so their costs reflect the full cost of providing services to the organization) and in allocating other indirect costs not typically recovered through internal service funds, such as city manager, city attorney, city clerk, human resources and accounting. Cost Allocation Plan. Cost allocation Plans provide a clear, consistent and reasonable basis for allocating indirect costs. Combination of the Three. Some agencies use a combination of these three approaches. In the City’s case, it uses a combination of internal services funds and a cost allocation plan in distributing indirect costs. Determining Direct and Indirect Costs The first step in preparing the City's Cost Allocation Plan is determining direct and indirect costs. Program costs that primarily provide service to the public are identified as direct costs, whereas the cost of programs that primarily provide services to the organization are identified as indirect costs. In accordance with generally accepted accounting principles, only operating costs are considered in preparing the Cost Allocation Plan. As such, capital outlay, debt service, interfund transfers and “pass-through” costs are excluded from the calculations. ALLOCATING INDIRECT COSTS - 2 - INTRODUCTION For general purposes, the City-wide indirect cost rate can be used as the basis for allocating indirect costs. The indirect cost rate is simply the ratio between indirect and direct costs, which can be easily computed for the City as a whole once the direct and indirect cost base has been determined. Citywide Indirect Cost Rate Provided in Table 1 (page 6) is a summary of direct and indirect costs for the City of Ukiah based on the Preliminary 2015-16 Budget along with the resulting citywide indirect cost rate. By applying the overall indirect cost rate to any specific direct cost program, the total cost of the program can be determined. For example, with an overall indirect cost rate of 18% the total cost for a direct program of $100,000 in Ukiah would be $118,000 with this approach. (Note: Adjustments are made for capital outlay, debt service, interfund transfers and pass-through costs). Bases of Allocation This method of cost allocation assumes that all indirect costs are incurred proportionately to the direct cost of the program. However, this may not be a reasonable assumption in all cases, as the benefit received from certain types of support service programs may be more closely related to another indicator of activity than cost. For example, if a program service is primarily delivered through contract and does not have any City staffing directly associated with it, distributing human resources costs to it may result in an inequitable allocation of costs. Because of this, the City’s Cost Allocation Plan establishes separate bases of allocation for each major indirect cost category. With this approach, indirect costs can be allocated to each direct cost program in a fair, convenient, and most importantly, consistent manner. Provided in Table 2 on page 7 is a summary of the primary methods of allocation used in distributing indirect costs to direct cost programs. Some of these costs lend themselves to an easily justified, rational approach of distribution. For example, human resources costs are related to the number of employees serviced. Other costs may not be as intuitive; however, the allocation bases are consistent with generally accepted accounting principles and recognize the concept that the cost of developing the information necessary to perform the cost allocations should not exceed the benefits likely to be gained. Where there is not otherwise a clear relationship to another allocation base (like authorized staffing or assigned space), allocating costs based on operating budget is the common industry practice, and as such, this approach is used by the City. - 3 - INTRODUCTION Indirect Cost Allocations A summary of the indirect cost allocations ( Central Services) is provided in Table 3.0 (page 7 ), followed by the detailed allocations for each specific indirect cost program for Central Services on Tables 4.0 through 4.8 (pages 8 to 16) and internal service fund allocations on Tables 5.0 to 5.9 (pages 17 to 25). Simple Method of Allocating Costs In performing the cost allocations, all indirect costs have been allocated only to direct cost programs rather than using a more complex sequential allocation system. Although there are some conceptual difficulties with this approach, the difference in the end result is insignificant, but the cost of preparation, review and audit is significantly reduced. For example, the cost of the City Manager program is allocated solely to direct cost programs based on their operating budget. However, as the City Manager program also benefits other indirect cost programs such as Human Resources and Finance, the cost allocations could appear to be distorted since no allocations are made to them. Under a more sophisticated system, the cost of the City Manager program would be allocated to the other indirect costs programs and iterative allocations then made to direct cost programs until all indirect costs are distributed. However, this process is extremely time consuming (and places far more reliance on the underlying significance of the allocation bases than may be appropriate) and results in the same basic cost allocations as the simpler method since all indirect costs are allocated in the final product. Again, as noted above, the plan’s goal is a reasonable allocation of indirect costs, not a “perfect” one. USES OF THE COST ALLOCATION PLAN By identifying total program costs, the Cost Allocation Plan can be used as an analytical tool in many financial decision-making situations, including: • Reimbursement Transfers. The Cost Allocation Plan identifies the costs incurred by the General Fund in providing administrative support services to the City's other funds such as enterprise operations and special revenue funds. For example, although the City's administrative, legal services, human resources and accounting funds are budgeted and accounted for in the General Fund, these programs provide support services to other City funds. The Cost Allocation Plan provides a clear methodology for determining this level of support in reimbursing these costs. • General Fund User Charges. Similar to ensuring that enterprise fund revenues fully recover their costs, the Cost Allocation Plan can also be used in determining appropriate user fees for General Fund services, such as planning applications, building permits and recreation activities, in ensuring that the full cost of services are considered in setting rates. • Labor Rates. Along with accounting for salary, benefits and paid leave (such as vacation, sick and holidays), “full cost” hourly labor rates can be developed that appropriately include indirect costs. • Contracting-Out for Services. By identifying total costs, the cost allocation plan can also be helpful in analyzing the costs of contracting for services versus performing services in-house. - 4 - INTRODUCTION • Grant Administration. Under federal cost accounting policies, it is permissible to include indirect costs in accounting for grant programs. By establishing indirect cost rates, the cost allocation plan can be used in recovering the total costs (direct and indirect) associated with implementing grant programs. PLAN PREPARATION In a true cost accounting system, indirect costs would be computed and allocated on an ongoing basis throughout the fiscal year based on actual costs. However, frequent updating in municipal finance would not serve any specific purpose—such as unit price control in a manufacturing company—but it would consume significant accounting resources. As such, the City’s Cost Allocation Plan is prepared annually based on the budget adopted by the Council. This approach works well when significant variances are not expected between budget and actual. However, where large variances are possible, then at the end of the fiscal year, a “true-up” should be calculated based on actual costs. Any variances (either over or under the Cost Allocation Plan amounts) can then be applied to the following year’s Cost Allocation Plan. After two years, the City will assess whether there were any significant variances between budget and actual, and move to a “true-up” approach if that proves to be the case. SUMMARY The Cost Allocation Plan helps make determining total program costs possible by establishing a reasonable methodology for identifying and allocating indirect costs to direct cost programs. Because of this, the Cost Allocation Plan can be a valuable analytical tool in a number of situations, including establishing fees designed for full cost recovery, reimbursing support service costs provided by the General Fund to other funds and recovering indirect costs associated with grant programs. Table 1 on the following page is a summary of all indirect and direct costs in this plan. Indirect costs represent only 18% of all costs. - 5 - Summary Schedules Table 1 - Indirect and Direct Cost Summary General Fund General Fund City Council 126,158 Business, Economic, Grant & Housing 323,775 City Clerk 137,984 Community Outreach/Public Information Services 37,000 City Manager 396,602 Parks 1,101,063 Administrative Support 84,456 Recreation Administration ( Includes all recreation activities)866,893 Government 136,673 Planning & Community Development 506,928 Accounting 696,537 Building Inspection 284,354 City Attorney 201,161 Engineering (Included Landfill/Solid Waste )610,293 Treasury Management 89,344 Traffic Signal operations 33,000 Management 481,893 Streets 775,765 Internal Service Funds Storm Drain 98,239 Garage 400,620 Animal Control 78,500 Purchasing 219,871 Police Patrol 5,262,672 Billing & Collections 860,347 Police Major Crimes 162,314 Dispatch 687,987 Community Services Officers (includes SLESF)504,767 Building Maintenance/ Corporation Yard 582,907 Fire 2,150,676 Information Technology 711,219 Enterprise Funds Insurance 288,013 Parking Enforcement 132,116 Total Interest Costs 6,101,772 Golf 41,973 Cenference Center 257,524 Airport 1,119,216 Electric 12,024,405 Street Lighting 368,369 Public Benefit 510,000 Water 2,391,148 Wastewater 3,442,852 Special Revenue Funds Successor Agency 33,800 Alex Rorabaugh Recreation Center 76,426 Downtown Business Improvement 15,000 Museum 307,703 Visit Ukiah 110,000 Total Direct Costs 33,626,771 Indirect costs divided by direct costs 18% Indirect Costs Direct Costs Overall Inderect Cost rate Under Generally accepted accounting principles, capital outlay, debt service and interfund transfers and pass-through payments are usually excluded in calculating indirect cost rates; accordingly, only operating costs (less transfers) are considered in the City’s cost allocation plan. - 6 - Summary Schedules Table 2- Basis of Indirect Cost Allocations INDIRECT COST PROGRAM BASIS OF ALLOCATION Central Services: Basis of Allocation City Council Operating Budget City Clerk Operating Budget City Manager Operating Budget Administrative Support Operating Budget Miscellaneous General Government Operating Budget Finance- Accounting Operating Budget City Attorney Operating Budget Human Resources Full-Time Equivalent Staffing Treasury Management Fund Balance- Interest Distribution Internal Service Funds: Insurance Liability Claims History/Claims Paid/Property Value Garage Previous Year Actual Parts/Labor Purchasing Operating Contractual Services & Supplies Billing & Collections Billable Revenues Dispatch Center Dispatch Services With Flat Rates to Utilities Building Maintenance Assigned Space City Hall Use Allowance Assigned Space Information Technology Full-Time Equivalent Staffing Table 3.0- Summary of indirect Cost Allocations for Central Services Central Services:General FundPublic Safety Special Revenue Funds Enterprise Funds Total City Council 17,398$ 30,610$ 2,037$ 76,113$ 126,158$ City Clerk 19,029 33,479 2,228 83,248 137,984 City Manager 54,694 96,228 6,403 239,277 396,602 Administrative Support 11,647 20,492 1,364 50,954 84,456 Miscellaneous General Government 18,848 33,161 2,207 82,457 136,673 Finance- Accounting 96,056 169,002 11,246 420,233 696,537 City Attorney 27,741 48,808 3,248 121,364 201,161 Human Resources 147,449 159,420 14,126 160,898 481,893 Treasury Management 6,877 - - 82,467 89,344 Total Indirect Costs for Central Services 399,737$ 591,201$ 42,859$ 1,317,011$ 2,350,808$ Total Direct Costs 4,715,810 8,080,429 542,929 20,287,603 33,626,771 Total Costs 5,115,547 8,671,630 585,788 21,604,614 35,977,579 Indirect Cost Rate 8.48%7.32%7.89%6.49%6.99% - 7 - Indirect Cost Allocations by Program Table 4.0 – Central Services: City Council Distribution Distribution Basis/Bases Percent Dept. Budget Total Operating Budget FY 2015/2016 100.00%126,158$ Total 100.00%126,158$ Org #Departments Total Operating Budget FY 2015/2016 Department Percent Total Distribution $ 126,158 10017100 Business, Economic, Grant & Housing 323,775 0.96%1,215 10018000 Community Outreach/Public Information Services 37,000 0.11%139 GF 17,398 13.79% 10022100 Parks 1,101,063 3.27%4,131 Police 22,541 17.87% 10022810 Recreation Administration (includes all Recreation Activities)866,893 2.58%3,252 Fire 8,069 6.40% 10023100 Planning & Community Development 506,928 1.51%1,902 Parking Enf.496 0.39% 10023320 Building Inspection 284,354 0.85%1,067 Golf 157 0.12% 10024210 Engineering (includes Landfill/Solid Waste)610,293 1.81%2,290 Conf. Center 966 0.77% 10024214 Traffic Signal Operations 33,000 0.10%124 Airport 4,199 3.33% 10024220 Streets 775,765 2.31%2,910 Electric 45,112 35.76% 10024224 Storm Drain 98,239 0.29%369 Street Lighting 1,382 1.10% 10020217 Animal Control 78,500 0.23%295 Public Benefit 1,913 1.52% 10520210 Police Patrol 5,262,672 15.65%19,744 Water 8,971 7.11% 10520224 Police Major Crimes 162,314 0.48%609 Wastewater12,917 10.24% 10520218 Community Services Officers (Includes SLESF)504,767 1.50%1,894 Successor Agency 127 0.10% 10521210 Fire 2,150,676 6.40%8,069 ARRC 287 0.23% Downtown Bus. Imp 56 0.04% 64020213 Parking Enforcement 132,116 0.39%496 Museum 1,154 0.92% 72022400 Golf 41,973 0.12%157 Visit Ukiah 413 0.33% 73022600 Conference Center 257,524 0.77%966 Total 126,158 100.00% 77725200 Airport 1,119,216 3.33%4,199 80026110 Electric Overhead 1,069,948 3.18%4,014 80026120 Electric Underground 1,059,977 3.15%3,977 80026130 Electric Substation 297,165 0.88%1,115 80026200 Electric Testing & Calibrating 229,920 0.68%863 80026300 Electric Generation 8,541,565 25.40%32,046 80026330 Electric Hydro Plant 265,284 0.79%995 80026400 Electric Administration 560,546 1.67%2,103 80526610 Street Lighting 368,369 1.10%1,382 80626500 Public Benefit 510,000 1.52%1,913 82024410 Water Administration 539,837 1.61%2,025 82024411 Water Production Operations & Management 1,094,926 3.26%4,108 82024414 Water Distribution Operations & Maintenance 756,385 2.25%2,838 84024420 Wastewater Administration 562,786 1.67%2,111 84024421 Wastewater Operations & Maintenance 580,033 1.72%2,176 84024425 Wastewater Treatment 2,300,033 6.84%8,629 10017200 Successor Agency 33,800 0.10%127 31122870 Alex Rorabaugh Recreation Center (ARRC)76,426 0.23%287 31217100 Downtown Business Improvement 15,000 0.04%56 69122700 Museum 307,703 0.92%1,154 75017110 Visit Ukiah 110,000 0.33%413 Total Operating Budget Used for Distribution 33,626,771 100.00%126,158$ GENERAL FUND ENTERPRISE FUNDS SPECIAL REVENUES & OTHER FUNDS - 8 - Indirect Cost Allocations by Program Table 4.1- Central Services: City Clerk Distribution Distribution Basis/Bases Percent Dept. Budget Total Operating Budget FY 2015/2016 100.00%137,984$ Total 100.00%137,984$ Org #Departments Total Operating Budget FY 2015/2016 Department Percent Total Distribution $ 137,984 10017100 Business, Economic, Grant & Housing 323,775 0.96%1,329 10018000 Community Outreach/Public Information Services 37,000 0.11%152 GF 19,029 13.79% 10022100 Parks 1,101,063 3.27%4,518 Police 24,654 17.87% 10022810 Recreation Administration (includes all Recreation Activities)866,893 2.58%3,557 Fire 8,825 6.40% 10023100 Planning & Community Development 506,928 1.51%2,080 Parking Enf.542 0.39% 10023320 Building Inspection 284,354 0.85%1,167 Golf 172 0.12% 10024210 Engineering (includes Landfill/Solid Waste)610,293 1.81%2,504 Conf. Center 1,057 0.77% 10024214 Traffic Signal Operations 33,000 0.10%135 Airport 4,593 3.33% 10024220 Streets 775,765 2.31%3,183 Electric 49,341 35.76% 10024224 Storm Drain 98,239 0.29%403 Street Lighting 1,512 1.10% 10020217 Animal Control 78,500 0.23%322 Public Benefit 2,093 1.52% 10520210 Police Patrol 5,262,672 15.65%21,595 Water 9,812 7.11% 10520224 Police Major Crimes 162,314 0.48%666 Wastewater14,127 10.24% 10520218 Community Services Officers (Includes SLESF)504,767 1.50%2,071 Successor Agency 139 0.10% 10521210 Fire 2,150,676 6.40%8,825 ARRC 314 0.23% Downtown Bus. Imp.62 0.04% 64020213 Parking Enforcement 132,116 0.39%542 Museum 1,263 0.92% 72022400 Golf 41,973 0.12%172 Visit Ukiah 451 0.33% 73022600 Conference Center 257,524 0.77%1,057 Total 137,984 100.00% 77725200 Airport 1,119,216 3.33%4,593 80026110 Electric Overhead 1,069,948 3.18%4,390 80026120 Electric Underground 1,059,977 3.15%4,350 80026130 Electric Substation 297,165 0.88%1,219 80026200 Electric Testing & Calibrating 229,920 0.68%943 80026300 Electric Generation 8,541,565 25.40%35,049 80026330 Electric Hydro Plant 265,284 0.79%1,089 80026400 Electric Administration 560,546 1.67%2,300 80526610 Street Lighting 368,369 1.10%1,512 80626500 Public Benefit 510,000 1.52%2,093 82024410 Water Administration 539,837 1.61%2,215 82024411 Water Production Operations & Management 1,094,926 3.26%4,493 82024414 Water Distribution Operations & Maintenance 756,385 2.25%3,104 84024420 Wastewater Administration 562,786 1.67%2,309 84024421 Wastewater Operations & Maintenance 580,033 1.72%2,380 84024425 Wastewater Treatment 2,300,033 6.84%9,438 10017200 Successor Agency 33,800 0.10%139 31122870 Alex Rorabaugh Recreation Center (ARRC)76,426 0.23%314 31217100 Downtown Business Improvement 15,000 0.04%62 69122700 Museum 307,703 0.92%1,263 75017110 Visit Ukiah 110,000 0.33%451 Total Operating Budget Used for Distribution 33,626,771 100.00%137,984$ GENERAL FUND ENTERPRISE FUNDS SPECIAL REVENUES & OTHER FUNDS - 9 - Indirect Cost Allocations by Program Table 4.2- Central Services: City Manager Distribution Distribution Basis/Bases Percent Dept. Budget Total Operating Budget FY 2015/2016 100.00%396,602$ Total 100.00%396,602$ Org #Departments Total Operating Budget FY 2015/2016 Department Percent Total Distribution $ 396,602 10017100 Business, Economic, Grant & Housing 323,775 0.96%3,819 10018000 Community Outreach/Public Information Services 37,000 0.11%436 GF 54,694 13.79% 10022100 Parks 1,101,063 3.27%12,986 Police 70,863 17.87% 10022810 Recreation Administration (includes all Recreation Activities)866,893 2.58%10,224 Fire 25,366 6.40% 10023100 Planning & Community Development 506,928 1.51%5,979 Parking Enf.1,558 0.39% 10023320 Building Inspection 284,354 0.85%3,354 Golf 495 0.12% 10024210 Engineering (includes Landfill/Solid Waste)610,293 1.81%7,198 Conf. Center 3,037 0.77% 10024214 Traffic Signal Operations 33,000 0.10%389 Airport 13,200 3.33% 10024220 Streets 775,765 2.31%9,150 Electric 141,819 35.76% 10024224 Storm Drain 98,239 0.29%1,159 Street Lighting 4,345 1.10% 10020217 Animal Control 78,500 0.23%926 Public Benefit 6,015 1.52% 10520210 Police Patrol 5,262,672 15.65%62,069 Water 28,202 7.11% 10520224 Police Major Crimes 162,314 0.48%1,914 Wastewater40,606 10.24% 10520218 Community Services Officers (Includes SLESF)504,767 1.50%5,953 Successor Agency 399 0.10% 10521210 Fire 2,150,676 6.40%25,366 ARRC 901 0.23% Downtown Bus. Imp 177 0.04% 64020213 Parking Enforcement 132,116 0.39%1,558 Museum 3,629 0.92% 72022400 Golf 41,973 0.12%495 Visit Ukiah 1,297 0.33% 73022600 Conference Center 257,524 0.77%3,037 Total 396,602 100.00% 77725200 Airport 1,119,216 3.33%13,200 80026110 Electric Overhead 1,069,948 3.18%12,619 80026120 Electric Underground 1,059,977 3.15%12,502 80026130 Electric Substation 297,165 0.88%3,505 80026200 Electric Testing & Calibrating 229,920 0.68%2,712 80026300 Electric Generation 8,541,565 25.40%100,741 80026330 Electric Hydro Plant 265,284 0.79%3,129 80026400 Electric Administration 560,546 1.67%6,611 80526610 Street Lighting 368,369 1.10%4,345 80626500 Public Benefit 510,000 1.52%6,015 82024410 Water Administration 539,837 1.61%6,367 82024411 Water Production Operations & Management 1,094,926 3.26%12,914 82024414 Water Distribution Operations & Maintenance 756,385 2.25%8,921 84024420 Wastewater Administration 562,786 1.67%6,638 84024421 Wastewater Operations & Maintenance 580,033 1.72%6,841 84024425 Wastewater Treatment 2,300,033 6.84%27,127 10017200 Successor Agency 33,800 0.10%399 31122870 Alex Rorabaugh Recreation Center (ARRC)76,426 0.23%901 31217100 Downtown Business Improvement 15,000 0.04%177 69122700 Museum 307,703 0.92%3,629 75017110 Visit Ukiah 110,000 0.33%1,297 Total Operating Budget Used for Distribution 33,626,771 100.00%396,602$ SPECIAL REVENUES & OTHER FUNDS GENERAL FUND ENTERPRISE FUNDS - 10 - Indirect Cost Allocations by Program Table 4.3 – Central Services: Administrative Support Distribution Distribution Basis/Bases Percent Dept. Budget Total Operating Budget FY 2015/2016 100.00%84,456$ Total 100.00%84,456$ Org #Departments Total Operating Budget FY 2015/2016 Department Percent Total Distribution $ 84,456 10017100 Business, Economic, Grant & Housing 323,775 0.96%813 10018000 Community Outreach/Public Information Services 37,000 0.11%93 GF 11,647 13.79% 10022100 Parks 1,101,063 3.27%2,765 Police 15,090 17.87% 10022810 Recreation Administration (includes all Recreation Activities)866,893 2.58%2,177 Fire 5,402 6.40% 10023100 Planning & Community Development 506,928 1.51%1,273 Parking Enf.332 0.39% 10023320 Building Inspection 284,354 0.85%714 Golf 105 0.12% 10024210 Engineering (includes Landfill/Solid Waste)610,293 1.81%1,533 Conf. Center 647 0.77% 10024214 Traffic Signal Operations 33,000 0.10%83 Airport 2,811 3.33% 10024220 Streets 775,765 2.31%1,948 Electric 30,200 35.76% 10024224 Storm Drain 98,239 0.29%247 Street Lighting 925 1.10% 10020217 Animal Control 78,500 0.23%197 Public Benefit 1,281 1.52% 10520210 Police Patrol 5,262,672 15.65%13,218 Water 6,006 7.11% 10520224 Police Major Crimes 162,314 0.48%408 Wastewater 8,647 10.24% 10520218 Community Services Officers (Includes SLESF)504,767 1.50%1,268 Successor Agency 85 0.10% 10521210 Fire 2,150,676 6.40%5,402 ARRC 192 0.23% Downtown Bus. Imp 38 0.04% 64020213 Parking Enforcement 132,116 0.39%332 Museum 773 0.92% 72022400 Golf 41,973 0.12%105 Visit Ukiah 276 0.33% 73022600 Conference Center 257,524 0.77%647 Total 84,456 100.00% 77725200 Airport 1,119,216 3.33%2,811 80026110 Electric Overhead 1,069,948 3.18%2,687 80026120 Electric Underground 1,059,977 3.15%2,662 80026130 Electric Substation 297,165 0.88%746 80026200 Electric Testing & Calibrating 229,920 0.68%577 80026300 Electric Generation 8,541,565 25.40%21,453 80026330 Electric Hydro Plant 265,284 0.79%666 80026400 Electric Administration 560,546 1.67%1,408 80526610 Street Lighting 368,369 1.10%925 80626500 Public Benefit 510,000 1.52%1,281 82024410 Water Administration 539,837 1.61%1,356 82024411 Water Production Operations & Management 1,094,926 3.26%2,750 82024414 Water Distribution Operations & Maintenance 756,385 2.25%1,900 84024420 Wastewater Administration 562,786 1.67%1,413 84024421 Wastewater Operations & Maintenance 580,033 1.72%1,457 84024425 Wastewater Treatment 2,300,033 6.84%5,777 10017200 Successor Agency 33,800 0.10%85 31122870 Alex Rorabaugh Recreation Center (ARRC)76,426 0.23%192 31217100 Downtown Business Improvement 15,000 0.04%38 69122700 Museum 307,703 0.92%773 75017110 Visit Ukiah 110,000 0.33%276 Total Operating Budget Used for Distribution 33,626,771 100.00%84,456$ GENERAL FUND ENTERPRISE FUNDS SPECIAL REVENUES & OTHER FUNDS - 11 - Indirect Cost Allocations by Program Table 4.4 – Central Services: Miscellaneous General Government Distribution (Property Tax Administration Fee excluded from distribution) Distribution Basis/Bases Percent Dept. Budget Total Operating Budget FY 2015/2016 100.00%136,673$ Total 100.00%136,673$ Org #Departments Total Operating Budget FY 2015/2016 Department Percent Total Distribution $ 136,673 10017100 Business, Economic, Grant & Housing 323,775 0.96%1,316 10018000 Community Outreach/Public Information Services 37,000 0.11%150 GF 18,848 13.79% 10022100 Parks 1,101,063 3.27%4,475 Police 24,420 17.87% 10022810 Recreation Administration (includes all Recreation Activities)866,893 2.58%3,523 Fire 8,741 6.40% 10023100 Planning & Community Development 506,928 1.51%2,060 Parking Enf.537 0.39% 10023320 Building Inspection 284,354 0.85%1,156 Golf 171 0.12% 10024210 Engineering (includes Landfill/Solid Waste)610,293 1.81%2,480 Conf. Center 1,047 0.77% 10024214 Traffic Signal Operations 33,000 0.10%134 Airport 4,549 3.33% 10024220 Streets 775,765 2.31%3,153 Electric 48,872 35.76% 10024224 Storm Drain 98,239 0.29%399 Street Lighting 1,497 1.10% 10020217 Animal Control 78,500 0.23%319 Public Benefit 2,073 1.52% 10520210 Police Patrol 5,262,672 15.65%21,390 Water 9,719 7.11% 10520224 Police Major Crimes 162,314 0.48%660 Wastewater 13,993 10.24% 10520218 Community Services Officers (Includes SLESF)504,767 1.50%2,052 Successor Agency 137 0.10% 10521210 Fire 2,150,676 6.40%8,741 ARRC 311 0.23% Downtown Bus. Imp 61 0.04% 64020213 Parking Enforcement 132,116 0.39%537 Museum 1,251 0.92% 72022400 Golf 41,973 0.12%171 Visit Ukiah 447 0.33% 73022600 Conference Center 257,524 0.77%1,047 Total 136,673 100.00% 77725200 Airport 1,119,216 3.33%4,549 80026110 Electric Overhead 1,069,948 3.18%4,349 80026120 Electric Underground 1,059,977 3.15%4,308 80026130 Electric Substation 297,165 0.88%1,208 80026200 Electric Testing & Calibrating 229,920 0.68%934 80026300 Electric Generation 8,541,565 25.40%34,716 80026330 Electric Hydro Plant 265,284 0.79%1,078 80026400 Electric Administration 560,546 1.67%2,278 80526610 Street Lighting 368,369 1.10%1,497 80626500 Public Benefit 510,000 1.52%2,073 82024410 Water Administration 539,837 1.61%2,194 82024411 Water Production Operations & Management 1,094,926 3.26%4,450 82024414 Water Distribution Operations & Maintenance 756,385 2.25%3,074 84024420 Wastewater Administration 562,786 1.67%2,287 84024421 Wastewater Operations & Maintenance 580,033 1.72%2,357 84024425 Wastewater Treatment 2,300,033 6.84%9,348 10017200 Successor Agency 33,800 0.10%137 31122870 Alex Rorabaugh Recreation Center (ARRC)76,426 0.23%311 31217100 Downtown Business Improvement 15,000 0.04%61 69122700 Museum 307,703 0.92%1,251 75017110 Visit Ukiah 110,000 0.33%447 Total Operating Budget Used for Distribution 33,626,771 100.00%136,673$ GENERAL FUND ENTERPRISE FUNDS SPECIAL REVENUES & OTHER FUNDS - 12 - Indirect Cost Allocations by Program Table 4.5 – Central Services: Finance Accounting Distribution Distribution Basis/Bases Percent Dept. Budget Total Operating Budget FY 2015/2016 100.00%696,537$ Total 100.00%696,537$ Org #Departments Total Operating Budget FY 2015/2016 Department Percent Total Distribution $ 696,537 10017100 Business, Economic, Grant & Housing 323,775 0.96%6,707 10018000 Community Outreach/Public Information Services 37,000 0.11%766 GF 96,056 13.79% 10022100 Parks 1,101,063 3.27%22,807 Police 124,454 17.87% 10022810 Recreation Administration (includes all Recreation Activities)866,893 2.58%17,957 Fire 44,549 6.40% 10023100 Planning & Community Development 506,928 1.51%10,500 Parking Enf.2,737 0.39% 10023320 Building Inspection 284,354 0.85%5,890 Golf 869 0.12% 10024210 Engineering (includes Landfill/Solid Waste)610,293 1.81%12,641 Conf. Center 5,334 0.77% 10024214 Traffic Signal Operations 33,000 0.10%684 Airport 23,183 3.33% 10024220 Streets 775,765 2.31%16,069 Electric 249,071 35.76% 10024224 Storm Drain 98,239 0.29%2,035 Street Lighting 7,630 1.10% 10020217 Animal Control 78,500 0.23%1,626 Public Benefit 10,564 1.52% 10520210 Police Patrol 5,262,672 15.65%109,010 Water 49,530 7.11% 10520224 Police Major Crimes 162,314 0.48%3,362 Wastewater71,314 10.24% 10520218 Community Services Officers (Includes SLESF)504,767 1.50%10,456 Successor Agency 700 0.10% 10521210 Fire 2,150,676 6.40%44,549 ARRC 1,583 0.23% Downtown Bus. Imp.311 0.04% 64020213 Parking Enforcement 132,116 0.39%2,737 Museum 6,374 0.92% 72022400 Golf 41,973 0.12%869 Visit Ukiah 2,279 0.33% 73022600 Conference Center 257,524 0.77%5,334 Total 696,537 100.00% 77725200 Airport 1,119,216 3.33%23,183 80026110 Electric Overhead 1,069,948 3.18%22,163 80026120 Electric Underground 1,059,977 3.15%21,956 80026130 Electric Substation 297,165 0.88%6,155 80026200 Electric Testing & Calibrating 229,920 0.68%4,763 80026300 Electric Generation 8,541,565 25.40%176,928 80026330 Electric Hydro Plant 265,284 0.79%5,495 80026400 Electric Administration 560,546 1.67%11,611 80526610 Street Lighting 368,369 1.10%7,630 80626500 Public Benefit 510,000 1.52%10,564 82024410 Water Administration 539,837 1.61%11,182 82024411 Water Production Operations & Management 1,094,926 3.26%22,680 82024414 Water Distribution Operations & Maintenance 756,385 2.25%15,668 84024420 Wastewater Administration 562,786 1.67%11,657 84024421 Wastewater Operations & Maintenance 580,033 1.72%12,015 84024425 Wastewater Treatment 2,300,033 6.84%47,642 10017200 Successor Agency 33,800 0.10%700 31122870 Alex Rorabaugh Recreation Center (ARRC)76,426 0.23%1,583 31217100 Downtown Business Improvement 15,000 0.04%311 69122700 Museum 307,703 0.92%6,374 75017110 Visit Ukiah 110,000 0.33%2,279 Total Operating Budget Used for Distribution 33,626,771 100.00%696,537$ GENERAL FUND ENTERPRISE FUNDS SPECIAL REVENUES & OTHER FUNDS - 13 - Indirect Cost Allocations by Program Table 4.6 – Central Services: City Attorney Distribution $100,000 for litigation costs are directly charged to the Wastewater Enterprise. Distribution Basis/Bases Percent Dept. Budget Total Operating Budget FY 2015/2016 100.00%201,161$ Total 100.00%201,161$ Org #Departments Total Operating Budget FY 2015/2016 Department Percent Total Distribution $ 201,161 10017100 Business, Economic, Grant & Housing 323,775 0.96%1,937 10018000 Community Outreach/Public Information Services 37,000 0.11%221 GF 27,741 13.79% 10022100 Parks 1,101,063 3.27%6,587 Police 35,942 17.87% 10022810 Recreation Administration (includes all Recreation Activities)866,893 2.58%5,186 Fire 12,866 6.40% 10023100 Planning & Community Development 506,928 1.51%3,033 Parking Enf.790 0.39% 10023320 Building Inspection 284,354 0.85%1,701 Golf 251 0.12% 10024210 Engineering (includes Landfill/Solid Waste)610,293 1.81%3,651 Conf. Center 1,541 0.77% 10024214 Traffic Signal Operations 33,000 0.10%197 Airport 6,695 3.33% 10024220 Streets 775,765 2.31%4,641 Electric 71,932 35.76% 10024224 Storm Drain 98,239 0.29%588 Street Lighting 2,204 1.10% 10020217 Animal Control 78,500 0.23%470 Public Benefit 3,051 1.52% 10520210 Police Patrol 5,262,672 15.65%31,482 Water 14,304 7.11% 10520224 Police Major Crimes 162,314 0.48%971 Wastewater20,596 10.24% 10520218 Community Services Officers (Includes SLESF)504,767 1.50%3,020 Successor Agency 202 0.10% 10521210 Fire 2,150,676 6.40%12,866 ARRC 457 0.23% Downtown Bus. Imp 90 0.04% 64020213 Parking Enforcement 132,116 0.39%790 Museum 1,841 0.92% 72022400 Golf 41,973 0.12%251 Visit Ukiah 658 0.33% 73022600 Conference Center 257,524 0.77%1,541 Total 201,161 100.00% 77725200 Airport 1,119,216 3.33%6,695 80026110 Electric Overhead 1,069,948 3.18%6,401 80026120 Electric Underground 1,059,977 3.15%6,341 80026130 Electric Substation 297,165 0.88%1,778 80026200 Electric Testing & Calibrating 229,920 0.68%1,375 80026300 Electric Generation 8,541,565 25.40%51,097 80026330 Electric Hydro Plant 265,284 0.79%1,587 80026400 Electric Administration 560,546 1.67%3,353 80526610 Street Lighting 368,369 1.10%2,204 80626500 Public Benefit 510,000 1.52%3,051 82024410 Water Administration 539,837 1.61%3,229 82024411 Water Production Operations & Management 1,094,926 3.26%6,550 82024414 Water Distribution Operations & Maintenance 756,385 2.25%4,525 84024420 Wastewater Administration 562,786 1.67%3,367 84024421 Wastewater Operations & Maintenance 580,033 1.72%3,470 84024425 Wastewater Treatment 2,300,033 6.84%13,759 10017200 Successor Agency 33,800 0.10%202 31122870 Alex Rorabaugh Recreation Center (ARRC)76,426 0.23%457 31217100 Downtown Business Improvement 15,000 0.04%90 69122700 Museum 307,703 0.92%1,841 75017110 Visit Ukiah 110,000 0.33%658 Total Operating Budget Used for Distribution 33,626,771 100.00%201,161$ GENERAL FUND ENTERPRISE FUNDS SPECIAL REVENUES & OTHER FUNDS - 14 - Indirect Cost Allocations by Program Table 4.7 – Central Services: Human Resources/ Risk Management Distribution Distribution Basis/Bases Percent Dept. Budget Number of Full Time Equivalent Employees (FTEs)100.00%481,893$ Total 100.00%481,893$ Department Percent Org #Departments Number of Full Time Equivalent Employees (FTEs) Department % Total Distribution $ 481,893 10010000 City Council 1.90 1.21%5,847 GF 147,449 30.60% 10015100 City Treasurer 0.38 0.24%1,169 Police 125,105 25.96% 10011100 City Clerk 1.00 0.64%3,078 Fire 34,315 7.12% 10012100 City Manager 1.56 1.00%4,801 Golf 1,385 0.29% 10012200 Administrative Support 0.50 0.32%1,539 Airport 13,049 2.71% 10013400 Accounting 6.80 4.34%20,928 Conf. Center 8,340 1.73% 10017100 Business, Economic, Grant & Housing 2.40 1.53%7,386 Electric 53,058 11.01% 10022100 Parks 11.15 7.12%34,315 Street Lighting 3,539 0.73% 10022810 Recreation Administration (includes all Recreation Activities 4.40)7.81 4.99%24,036 Water 38,840 8.06% 10023100 Planning & Community Development 3.44 2.20%10,587 Wastewater42,687 8.86% 10023320 Building Inspection 2.06 1.32%6,340 ARRC 708 0.15% 10024210 Engineering (includes Landfill/Solid Waste 1.40)2.56 1.63%7,879 Museum11,880 2.47% 10024220 Streets 5.05 3.23%15,542 Visit Ukiah 1,539 0.32% 10024214 Storm Drain 1.30 0.83%4,001 Total 481,893 100.00% 10520210 Police Patrol 33.85 21.62%104,177 10520224 Police Major Crimes 1.00 0.64%3,078 10520218 Community Services Officers (Includes SLESF 1.00)5.80 3.70%17,850 10521210 Fire 11.15 7.12%34,315 72022400 Golf 0.45 0.29%1,385 73022600 Conference Center 2.71 1.73%8,340 77725200 Airport 4.24 2.71%13,049 80026110 Electric Overhead 5.20 3.32%16,004 80026120 Electric Underground 6.16 3.93%18,958 80026200 Electric Testing & Calibrating 1.40 0.89%4,309 80026130 Electric Substation 1.70 1.09%5,232 80026330 Electric Hydro Plant 0.75 0.48%2,308 80026400 Electric Administration 2.03 1.30%6,248 80526610 Street Lighting 1.15 0.73%3,539 82024410 Water Administration 2.03 1.30%6,248 82024411 Water Production Operations & Management 4.99 3.19%15,357 82024414 Water Distribution Operations & Maintenance 5.60 3.58%17,235 84024420 Wastewater Administration 2.98 1.90%9,171 84024421 Wastewater Operations & Maintenance 4.41 2.82%13,572 84024425 Wastewater Treatment 6.48 4.14%19,943 31122870 Alex Rorabaugh Recreation Center (ARRC)0.23 0.15%708 69122700 Museum 3.86 2.47%11,880 75017110 Vist Ukiah 0.50 0.32%1,539 Total FTE's for Distribution 156.58 100.00%481,893$ GENERAL FUND ENTERPRISE FUNDS SPECIAL REVENUE & OTHER FUNDS - 15 - Indirect Cost Allocations by Program Table 4.8 – Central Services: Treasurer Distribution Distribution Basis/Bases Percent Dept. Budget Fund Balance FY 2015/2016 100.00%89,344$ Total 100.00%89,344$ Org #Fund/Department Name Balance FY 2015/2016 Department Percent Total Distribution $ 89,344 10000000 General Fund 3,305,267 7.70%6,877 64020213 Parking Enforcement 113,260 0.26%236 73022600 Conference Center 33,483 0.08%70 77725200 Airport 186,827 0.44%389 80026400 Electric Administration 12,131,498 28.25%25,239 80526610 Street Lighting 440,856 1.03%917 80626500 Public Benefit 6,039 0.01%13 82024410 Water Administration 6,953,266 16.19%14,466 84024420 Wastewater Administration (includes Fund 940)19,773,631 46.05%41,138 Total Fund Balance for Distribution 42,944,127 100.00%89,344$ GENERAL FUND ENTERPRISE FUNDS - 16 - Internal Service Fund Allocations Table 5.0 – Liability Insurance/Claims Premium Distribution Distribution Basis/Bases Percent Dept. Budget Total Liability Insurance/Claims Premium FY 2015/2016 100%288,013$ Total 100%288,013$ Org #Departments Amount Percent Distibution No. Percent DisbributionAmount Percent Distribution Total Distribution 95,813 GENERAL FUND 10017100 Business, Economic, Grant & Housing - 0.00%- - 0.00%- 313,850 0.94%896 896 10018000 Community Outreach/Public Information Services - 0.00%- - 0.00%- 37,000 0.11%106 106 10022100 Parks 958 0.28%300 2 5.48%5,300 1,097,489 3.27%3,133 8,733 10022810 Recreation Administration (includes all Recreation Activities)- 0.00%- - 0.00%- 866,223 2.58%2,473 2,473 10023100 Planning & Community Development - 0.00%- - 0.00%- 506,928 1.51%1,447 1,447 10023320 Building Inspection - 0.00%- - 0.00%- 284,354 0.85%812 812 10024210 Engineering (includes Landfill/Solid Waste)- 0.00%- - 0.00%- 610,161 1.82%1,742 1,742 10024214 Traffic Signal Operations - 0.00%- - 0.00%- 33,000 0.10%94 94 10024220 Streets 12,481 3.67%3,500 7 19.18%18,400 775,765 2.31%2,214 24,114 10024224 Storm Drain - 0.00%- - 0.00%- 98,239 0.29%280 280 10020217 Animal Control - 0.00%- - 0.00%- 83,765 0.25%239 239 10520210 Police Patrol 82,498 24.26%23,300 10 27.40%26,300 5,243,320 15.62%14,967 64,567 10520224 Police Major Crimes - 0.00%- - 0.00%- 162,314 0.48%463 463 10520218 Community Services Officers (Includes SLESF)- 0.00%- - 0.00%- 504,767 1.50%1,441 1,441 10521210 Fire 8,699 2.56%2,500 1 2.74%2,600 2,144,519 6.39%6,122 11,222 ENTERPRISE FUNDS 64020213 Parking Enforcement - 0.00%- - 0.00%- 127,906 0.38%365 365 72022400 Golf - 0.00%- - 0.00%- 41,973 0.13%120 120 73022600 Conference Center 36,000 10.59%10,200 1 2.74%2,600 257,524 0.77%735 13,535 77725200 Airport - 0.00%- - 0.00%- 1,116,037 3.32%3,186 3,186 80026110 Electric Overhead - 0.00%- - 0.00%- 1,069,948 3.19%3,054 3,054 80026120 Electric Underground - 0.00%- - 0.00%- 1,059,977 3.16%3,026 3,026 80026130 Electric Substation - 0.00%- - 0.00%- 297,165 0.89%848 848 80026200 Electric Testing & Calibrating - 0.00%- - 0.00%- 229,920 0.68%656 656 80026300 Electric Generation - 0.00%- - 0.00%- 8,541,565 25.45%24,382 24,382 80026330 Electric Hydro Plant - 0.00%- - 0.00%- 268,443 0.80%766 766 80026400 Electric Administration 4,131 1.21%1,200 2 5.48%5,300 560,546 1.67%1,600 8,100 80526610 Street Lighting - 0.00%- - 0.00%- 368,369 1.10%1,052 1,052 80626500 Public Benefit - 0.00%- - 0.00%- 510,000 1.52%1,456 1,456 82024410 Water Administration 5,557 1.63%1,600 3 6.85%6,600 539,837 1.61%1,541 9,741 82024411 Water Production Operations & Management - 0.00%- - 0.00%- 1,091,424 3.25%3,115 3,115 82024414 Water Distribution Operations & Maintenance - 0.00%- - 0.00%- 747,750 2.23%2,134 2,134 84024420 Wastewater Administration 189,778 55.80%53,600 11 30.14%28,900 562,786 1.68%1,606 84,106 84024421 Wastewater Operations & Maintenance - 0.00%- - 0.00%- 572,944 1.71%1,635 1,635 84024425 Wastewater Treatment - 0.00%- - 0.00%- 2,296,575 6.84%6,556 6,556 SPECIAL REVENUE & OTHER FUNDS 10017200 Successor Agency - 0.00%- - 0.00%- 33,800 0.10%96 96 31122870 Alex Rorabaugh Recreation Center (ARRC)- 0.00%- - 0.00%- 76,426 0.23%218 218 31217100 Downtown Business Improvement - 0.00%- - 0.00%- 15,000 0.04%43 43 69122700 Museum - 0.00%- - 0.00%- 307,703 0.92%878 878 75017110 Visit Ukiah - 0.00%- - 0.00%- 110,000 0.33%314 314 Total Operating Budget Used for Distribution 340,102 100.00%96,200 37 100.00%96,000 33,565,312 100.00%95,813 288,013 Claims Paid: Last 3 Years Claims Made: Last 3 Years Operating Budget GF 40,696 14.13% Police 66,710 23.16% Fire 11,222 3.90% Parking Enf.365 0.13% Golf 120 0.04% Conf. Center 13,535 4.70% Airport 3,186 1.11% Electric 40,833 14.18% Street Lighting 1,052 0.37% Public Benefit 1,456 0.51% Water 14,991 5.20% Wastewater 92,298 32.05% Successor Agency 96 0.03% ARRC 218 0.08% Downtown Bus. Imp.43 0.01% Museum 878 0.30% Visit Ukiah 314 0.11% Total 288,013 100.00% - 17 - Internal Service Fund Allocations Table 5.1 – Property, Earthquake & Flood, and Auto Premium Distribution Org #Departments Property Value Earthquake & Flood Premium (DIC) Property Insurance Premium Dept. Percent Total Distribution GENERAL FUND Misc. Gen Gov 16,979 10012400 Misc. General Government 11,960,097 8,282 8,697 6.99%16,979$ Engineering 116 ENTERPRISE FUNDS Streets 3,120 72022400 Golf 2,163,800 729 1,540 0.93%2,269$ Parks 986 77725200 Airport 7,193,960 793 5,119 2.43%5,912$ Police 2,911 80026400 Electric 16,094,560 10,743 10,593 8.78%21,336$ Fire 5,166 82024410 Water 22,012,239 15,737 15,662 12.92%31,400$ Garage 181 84024420 Wastewater 98,105,437 57,807 70,663 52.87%128,470$ Building Maintenance 9,444 INTERNAL SERVICE FUNDS Corp Yard 4,495 20822500 Building Maintenance 6,301,058 4,478 4,483 3.69%8,961$ Golf 2,269 20824300 Corp yard 3,560,550 1,961 2,533 1.85%4,495$ Airport 6,902 SPECIAL REVENUE & OTHER FUNDS Electric 26,513 31122870 Alex Rorabaugh Recreation Center 6,583,000 - 4,684 1.93%4,684$ Water 34,237 69122700 Museum 12,918,168 9,309 9,192 7.61%18,501$ Wastewater130,903 ARRC 4,684 Total Property & DIC Premium 186,892,869 109,840 133,166 100.00%243,006 Museum 18,501 Total 267,406 Distribution is based on property valuation Org #Departments Value of Vehicles Dept. Percent Total Distribution GENERAL FUND 10024210 Engineering 37,532 0.48%116 10024220 Streets 1,005,983 12.79%3,120 10022100 Parks 318,018 4.04%986 10520210 Police 938,534 11.93%2,911 10521210 Fire 1,665,563 21.17%5,166 INTERNAL SERVICE FUNDS 20324100 Garage 58,496 0.74%181 20822500 Building Maintenance 155,660 1.98%483 ENTERPRISE FUNDS 77725200 Airport 319,271 4.06%990 80026400 Electric 1,669,064 21.22%5,177 82024410 WTP 77,874 0.99%242 82024410 Water 837,034 10.64%2,596 84024420 Wastewater 684,846 8.71%2,124 84024420 WWTP 99,348 1.26%308 Total Auto Insurance Premium 7,867,223.0 100.00%24,400 - 18 - Internal Service Fund Allocations Table 5.2 – Building Maintenance Distribution Distribution Basis/Bases Percent Dept. Budget Civic Center Square Footage 100.00%427,357$ Total 100.00%427,357$ Org #Departments Civic Center Square Footage Department Percent Total Distribution $ 427,357 10010000 City Council 2,639.60 10.41%44,502 10011100 City Clerk 883.80 3.49%14,900 10012100 City Manager 757.80 2.99%12,776 10012200 Administrative Support 303.80 1.20%5,122 10013400 Accounting 879.60 3.47%14,830 10016100 Human Resources/Risk Management 391.90 1.55%6,607 10022100 Parks 147.30 0.58%2,483 10022810 Recreation Administration 725.00 2.86%12,223 10023100 Planning & Community Development 568.40 2.24%9,583 10023320 Building Inspection 173.20 0.68%2,920 10024210 Engineering 554.20 2.19%9,344 10024220 Streets 170.10 0.67%2,868 10520210 Police Patrol 7,009.20 27.65%118,172 10521210 Fire 9,090.30 35.86%153,258 80026400 Electric Administration 699.80 2.76%11,798 82024410 Water Administration 151.40 0.60%2,553 84024420 Wastewater Administration 202.70 0.80%3,417 Total 25,348.10 100.00%427,357$ Removed from Distribution Adjustment to Fire *10521210 Verihealth Contract Credit $42,000 (3,500 x 12 months)(42,000)$ 10521210 Fire adjusted distribution 111,258$ GENERAL FUND ENTERPRISE FUNDS GF 409,589 95.8% Electric Administration 11,798 2.8% Water Administration 2,553 0.6% Wastewater Administration 3,417 0.8% Total 427,357 100.0% - 19 - Internal Service Fund Allocations Table 5.3 – Corporation Yard Distribution A diagram showing area of Corporation yard can be found in the Appendix. Distribution Basis/Bases Percent Dept. Budget Corporation Yard 100.00%70,550$ Total 100.00%70,550$ Org #Departments Corporation Yard Department Percent Total Distribution $ 70,550 10024220 Streets 32,220.00 20.36%14,366 80026400 Electric Administration 75,261.00 47.57%33,558 82024410 Water Administration 26,457.00 16.72%11,797 84024420 Wastewater Administration 24,287.00 15.35%10,829 Total Operating Budget Used for Distribution 158,225.00 100.00%70,550 GENERAL FUND ENTERPRISE FUNDS GF 14,366 20.4% Electric Administration 33,558 47.6% Water Administration 11,797 16.7% Wastewater Administration 10,829 15.3% Total 70,550 100.0% - 20 - Internal Service Fund Allocations Table 5.4 – Civic Utilities Distribution Distribution Basis/Bases Percent Building Utilities Civic Center Square Footage 100.00%85,000$ Total 100.00%85,000$ Org #Departments Civic Center Square Footage Department Percent Total Distribution $ 85,000 10010000 City Council 2,639.60 10.41%8,851 10011100 City Clerk 883.80 3.49%2,964 10012100 City Manager 757.80 2.99%2,541 10012200 Administrative Support 303.80 1.20%1,019 10013400 Accounting 879.60 3.47%2,950 10016100 Human Resources/Risk Management 391.90 1.55%1,314 10022100 Parks 147.30 0.58%494 10022810 Recreation Administration 725.00 2.86%2,431 10023100 Planning & Community Development 568.40 2.24%1,906 10023320 Building Inspection 173.20 0.68%581 10024210 Engineering 554.20 2.19%1,858 10024220 Streets 170.10 0.67%570 10520210 Police Patrol 7,009.20 27.65%23,504 10521210 Fire 9,090.30 35.86%30,483 80026400 Electric Administration 699.80 2.76%2,347 82024410 Water Administration 151.40 0.60%508 84024420 Wastewater Administration 202.70 0.80%680 Total Utilities 25,348.10 100.00%85,000 GENERAL FUND ENTERPRISE FUNDS GF 81,466 95.8% Electric Administration 2,347 2.8% Water Administration 508 0.6% Wastewater Administration 680 0.8% Total 85,000 100.0% - 21 - Internal Service Fund Allocations Table 5.5 – Garage Distribution Distribution Basis/Bases Percent Dept. Budget Garage Parts 100.00%65,210$ Garage Labor 100.00%335,410$ Total 100.00%400,620$ Fund #Departments Garage Parts Garage Labor (hrs) Department Percent Labor Distribution Total Distribution 65,210 335,410 $ 65,210 $ 428,738 10012200 Administrative Support (includes Landfill)- 2 0.06%205 205 10024210 Engineering 37 110.34%1,130 1,166 10024220 Streets 12,830 58117.79%59,667 72,497 10022100 Parks 5,471 2427.41%24,853 30,324 10520210 Police 13,563 90427.68%92,839 106,402 10020217 Animal Control 1,033 501.53%5,135 6,168 10521210 Fire 14,448 41712.77%42,825 57,273 77725200 Airport 2,065 742.27%7,600 9,665 80026400 Electric 4,680 32910.07%33,787 38,468 82024411 Water Treatment Plan 1,635 81.52.50%8,370 10,005 82024414 Water Operations & Maintenance 2,982 2016.15%20,642 23,624 80326330 Hydro Plant - 300.92%3,081 3,081 84024421 Sewer Operations & Maintenance 4,590 1655.05%16,945 21,535 84024425 Sewer Treatment Plant Operations 1,221 80.52.46%8,267 9,488 64020213 Parking 654 98 3.00%10,064 10,718 Total Operating Budget Used for Distribution 65,210 3,266 100.00%335,410 400,620 GENERAL FUND ENTERPRISE FUNDS SPECIAL REVENUE & OTHER FUNDS GF 274,035 68.4% Airport 9,665 2.4% Electric 41,549 10.4% Water 33,630 8.4% Wastewater31,023 7.7% Parking 10,718 2.7% Total 400,620 100.0% - 22 - Internal Service Fund Allocations Table 5.6 – Dispatch Distribution Distribution Basis/Bases Percent Dispatch Budget Dispatch Department Distribution 100.00%1,052,962$ Total 100.00%1,052,962$ Distribution Base (less Flat Rates)687,987$ Org #Departments Dispatch Department Distribution Total Distribution 10520210 Public Safety Police 60%412,792 10521210 Public Safety Fire 40%275,195 10520210 Public Safety Police - Flat Rate (Fort Bragg Contract)flat rate 324,975 (Fire now uses Cal Fire for dispatch) ENTERPRISE FUNDS 80026400 Electric flat rate 20,000 82024410 Water flat rate 10,000 84024420 Sewer flat rate 10,000 Total Operating Budget Used for Distribution 1,052,962 GENERAL FUND GF 1,012,962 96.2% Electric 20,000 1.9% Water 10,000 0.9% Wastewater10,000 0.9% Total1,052,962 100.0% - 23 - Internal Service Fund Allocations Table 5.7 – Purchasing Distribution Distribution Basis/Bases Percent Dept. Budget Budget less Direct Costs Direct Costs* Total Distribution Purchasing Contractual Services & Supplies 100.00%219,871$ 143,747$ 76,124$ 219,871$ Total 100.00%219,871$ 143,747$ 76,124$ 219,871$ Fund #Departments Purchasing Contractual Services & Supplies Department Percent Budget less Direct Costs Direct Costs* Total Distribution $ 143,747 10010000 City Council 2,150.00 0.05%67 - 67 10011100 City Clerk 27,650.00 0.60%866 - 866 10012100 City Manager 13,940.00 0.30%436 - 436 10012200 Administrative Support 18,000.00 0.39%564 - 564 10012400 Miscellaneous General Government 60,000.00 1.31%1,878 - 1,878 10013400 Accounting 113,000.00 2.46%3,538 - 3,538 10014000 City Attorney 193,600.00 4.22%6,061 - 6,061 10015100 Treasurer 80,000.00 1.74%2,505 - 2,505 10016100 Human Resources/Risk Management 41,400.00 0.90%1,296 - 1,296 10017100 Business, Economic, Grant and Housing Services 50,100.00 1.09%1,568 - 1,568 10017200 Successor Agency 33,800.00 0.74%1,058 - 1,058 10018000 Community Outreach/ Public Information Services 25,500.00 0.56%798 - 798 10022100 Parks 89,000.00 1.94%2,786 - 2,786 10022810 Recreation Administration (includes aquatics and programs)274,350.00 5.98%8,589 - 8,589 10023100 Planning & Community Development 110,500.00 2.41%3,459 - 3,459 10023320 Building Inspection 44,700.00 0.97%1,399 - 1,399 10024210 Engineering 25,000.00 0.54%783 - 783 10024214 Storm Drains 31,500.00 0.69%986 - 986 10024220 Streets 167,160.00 3.64%5,233 - 5,233 10520210 Police (Includes Volunteers $900 Major Crimes $8,800 & SLESF $28,621)210,021.00 4.57%6,575 - 6,575 10521210 Fire ( reduced by $477,590 for fire District Contract)8,950.00 0.19%280 - 280 73022600 Conference 72,400.00 1.58%2,267 - 2,267 77725200 Airport 42,900.00 0.93%1,343 - 1,343 80026400 Electric (includes Street Lighting $45,000 & Public Benefit $120,000) 1,083,000.00 23.59%33,905 72,318 106,223 82024410 Water 445,300.00 9.70%13,941 1,903 15,844 84024420 Watewater ( reduced by $100,000 for Litigation Services)1,161,750.00 25.30%36,370 1,903 38,273 31122870 Alex Rorabaugh Recreation Center (ARRC)25,000.00 0.54%783 - 783 31217100 Downtown District 15,000.00 0.33%470 - 470 64020213 Parking District 111,128.00 2.42%3,479 - 3,479 69122700 Museum 14,800.00 0.32%463 - 463 .Total Operating Budget Used for Distribution 4,591,599.00 100.00%143,747 76,124 219,871 *Direct Costs: 1 FTE Purchasing Assistant 95% Electric 2.5% Water, 2.5% Sewer GENERAL FUND ENTERPRISE FUNDS SPECIAL REVENUE & OTHER FUNDS GF 50,727 23.1% Conf. Center 2,267 1.0% Airport 1,343 0.6% Electric 106,223 48.3% Water 15,844 7.2% Wastewater 38,273 17.4% ARRC 783 0.4% Downtown District 470 0.2% Parking District 3,479 1.6% Museum 463 0.2% Total 219,871 100.0% - 24 - Internal Service Fund Allocations Table 5.8 – Billing & Collections Distribution Distribution Basis/Bases Percent Dept. Budget Direct Distribution Total Distribution Utilities Based on Billable Revenues 100.00%560,810$ 299,537$ 860,347$ General Billing - Based on billed revenues 100.00%560,810$ 299,537$ 860,347$ Org #Departments on Billable Revenues Department Percent Billable Distribution Total Distribution $ 560,810 10012200 Administrative Support (includes Landfill)155,205.44 0.50%2,815 - 2,815 10520210 Public Safety Police 864.09 0.00%16 - 16 72022400 Golf 22,698.50 0.07%412 - 412 77725200 Airport 532,163.26 1.72%9,652 - 9,652 80026400 Electric 14,217,963.46 45.98%257,872179,189437,061 82024410 Water 5,726,622.23 18.52%103,864120,348224,212 84024420 Wastewater 10,224,066.74 33.07%185,434 - 185,434 64020213 Parking 41,136.50 0.13%746 - 746 Total Operating Budget Used for Distribution 30,920,720 100.00%560,810 299,537 860,347 Garbage is Removed from Distribution (flat amount) Sales x 3% *Based on historical time studies of 60% Electric 40% Water *Meter Readers Direct Distribution GENERAL FUND SPECIAL REVENUE & OTHER FUNDS ENTERPRISE FUNDS GF 2,831 0.3% Golf 412 0.0% Airport 9,652 1.1% Electric 437,061 50.8% Water224,212 26.1% Wastewater185,434 21.6% Parking 746 0.1% Total 860,347 100.0% - 25 - Internal Service Fund Allocations Table 5.9 – Information Technology Distribution Distribution Basis/Bases Percent Dept. Budget Number of Full Time Equivalent Employees (FTEs)100.00%711,219$ Total 100.00%711,219$ Org #Departments Number of Full Time Equivalent Employees (FTEs) Department Percent FTE Distribution $ 711,219 10010000 City Council 1.90 1.01%7,179 10015100 City Treasurer 0.38 0.20%1,436 10011100 City Clerk 1.00 0.53%3,778 x GF 386,176 54.3% 10012100 City Manager 1.56 0.83%5,894 x Purchasing 7,745 1.1% 10012200 Administrative Support 0.50 0.27%1,889 Billing & Collection 36,876 5.2% 10013400 Accounting 6.80 3.61%25,692 x Garage 12,279 1.7% 10016100 Human Resources/Risk Management 2.50 1.33%9,446 x Corp Yard 1,209 0.2% 10017100 Business, Economic, Grant & Housing 2.40 1.27%9,068 x Building Maint 18,060 2.5% 10022100 Parks 11.15 5.92%42,128 x Dispatch 34,004 4.8% 10022810 Recreation Administration (includes all Recreation Activities 4.40)7.81 4.15%29,508 x Golf 1,700 0.2% 10023100 Planning & Community Development 3.44 1.83%12,997 x Airport 16,020 2.3% 10023320 Building Inspection 2.06 1.09%7,783 x Electric 69,482 9.8% 10024210 Engineering (includes Landfill/Solid Waste 1.40)2.56 1.36%9,672 x Water 47,682 6.7% 10024220 Streets 5.05 2.68%19,080 x Wastewater52,404 7.4% 10024214 Storm Drain 1.30 0.69%4,912 Conf. Center 10,239 1.4% 10520210 Police Patrol 33.85 17.98%127,894 x ARRC 869 0.1% 10520224 Police Major Crimes 1.00 0.53%3,778 Visit Ukiah 1,889 0.3% 10520218 Community Services Officers (Includes SLESF 1.00)5.80 3.08%21,914 Museum 14,584 2.1% 10521210 Fire 11.15 5.92%42,128 x Total 711,219 100.0% 20413500 Purchasing 2.05 1.09%7,745 x 20513300 Billing & Collection 6.00 3.19%22,670 x 20524415 Water Meter Reading 1.88 1.00%7,103 x 20526430 Electric Meter Reading 1.88 1.00%7,103 x 20324100 Garage 3.25 1.73%12,279 x 20824300 Alex Rorabaugh Recreation Center (ARRC)0.32 0.17%1,209 20822500 Building Maintenance 4.78 2.54%18,060 20620231 Dispatch Ukiah (Includes Dispatch Fort Bragg 3.00)9.00 4.78%34,004 x 72022400 Golf 0.45 0.24%1,700 73022600 Conference Center 2.71 1.44%10,239 x 77725200 Airport 4.24 2.25%16,020 x 80026110 Electric Overhead 5.20 2.76%19,647 80026120 Electric Underground 6.16 3.27%23,274 80026200 Electric Testing & Calibrating 1.40 0.74%5,290 80026130 Electric Substation 1.70 0.90%6,423 80526610 Street Lighting 1.15 0.61%4,345 80026330 Electric Hydro Plant 0.75 0.40%2,834 80026400 Electric Administration 2.03 1.08%7,670 x 82024410 Water Administration 2.03 1.08%7,670 x 82024411 Water Production Operations & Management 4.99 2.65%18,853 82024414 Water Distribution Operations & Maintenance 5.60 2.97%21,158 x 84024420 Wastewater Administration 2.98 1.58%11,259 84024421 Wastewater Operations & Maintenance 4.41 2.34%16,662 x 84024425 Wastewater Treatment 6.48 3.44%24,483 x 31122870 Alex Rorabaugh Recreation Center (ARRC)0.23 0.12%869 x 69122700 Museum 3.86 2.05%14,584 x 75017110 Visit Ukiah 0.50 0.27%1,889 Total FTE Used for Distribution 188.24 100.00%711,219 GENERAL FUND INTERNAL SERVICE FUNDS ENTERPRISE FUNDS SPECIAL REVENUE & OTHER FUNDS - 26 - Appendix - 27 - Attachment 4 Page 1 of 2 RESOLUTION NO. 2015-00 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF UKIAH ADOPTING THE 2015-2016 FISCAL YEAR BUDGET BE IT RESOLVED by the City Council of the City of Ukiah, State of California, that the Budget for the Fiscal Year beginning July 1, 2015, and ending June 30, 2016, is hereby adopted, for the Funds as follows: Estimated Beginning Fund Balance REVENUES EXPENDITURES Increase/(Decrease) in Reserve Estimated Ending Fund Balance Description: Unrestricted Funds FUND 100, 105 GENERAL FUND 17,526,085 City Council 126,158 City Clerk/Elections 137,984 City Manager 396,602 Administrative Support 84,456 Miscellaneous General Government 161,673 Finance Department 696,537 City Attorney 201,161 Treasury Management 89,344 Human Resources/Risk Management 481,893 Economic Development 325,382 Visit Ukiah - Successor Agency - Community Outreach 37,904 Parks 1,154,471 Building Maintenance - Recreation/Programs 958,007 Planning 536,320 Building 297,849 Information Technology - Public Works- Engineering 206,229 Public Works- Traffic Signals 38,992 Public Works- Streets 835,029 Public Works - Corporation Yard - Storm Drains 98,519 Animal Control 83,635 Police 6,942,106 Fire 2,770,301 Subtotal 17,526,085 16,660,552 Transfers Out 410,856 TOTAL GENERAL FUND 3,237,341$ $17,526,085 $17,071,408 $454,677 3,692,018$ Budget Summary by Fund Fiscal Year 2015-2016 CITY OF UKIAH (Continued on Next Page) Attachment 4 2 OHSUSA:751836402.1 Estimated Beginning Fund Balance REVENUES EXPENDITURES Increase/(Decrease) in Reserve Estimated Ending Fund Balance Description: Restricted Funds: Fund 201, Worker' Compensation 375,997$ 605,584$ 710,628$ (105,044)$ 270,953$ Fund 202, Insurance 1,995,945 555,421 555,419 2 1,995,947 Fund 203, Garage 53,561 411,224 457,224 (46,000) 7,561 Fund 204, Purchasing 23,645 219,871 219,871 - 23,645 Fund 205, Billing and Collection 569,646 1,019,115 1,139,799 (120,684) 448,962 Fund 206, Public Safety Dispatch - 1,052,962 1,052,962 - - Fund 208, Building Maintenance/Corporation Yard - 512,357 512,357 - - Fund 209, Information Technology - 512,357 512,357 - - Fund 300, Park Development 21,838 218 - 218 22,056 Fund 311, Alex Rorabaugh Center (ARC)4,485 88,016 88,016 - 4,485 Fund 312, Downtown Business Improvement 150 18,472 16,307 2,165 2,315 Fund 500, 2106 Gas Tax 84,260 52,897 52,473 424 84,684 Fund 501, 2107 Gas Tax 22,462 126,505 126,422 83 22,545 Fund 502, 2107.5 Gas Tax 196 4,000 4,000 - 196 Fund 503, 2105 Gas Tax - 92,490 92,469 21 21 Fund 635, Supplemental Law Enforcement (SLESF - 100,500 110,571 (10,071) (10,071) Fund 640, Parking Enforcement 106,402 109,454 140,183 (30,729) 75,673 Fund 691, Museum (247,010) 320,293 320,293 - (247,010) Fund 700-705, Solid Waste, Land Fill 6,809,762 55,104 427,389 (372,285) 6,437,477 Fund 720, Golf (1,296,707) 78,240 50,080 28,160 (1,268,547) Fund 730, Conference Center 49,021 330,680 330,603 77 49,098 Fund 750, Visit Ukiah - 119,563 119,563 - - Fund 777, Airport 76,290 1,320,066 1,225,616 94,450 170,740 Fund 800, Electric 12,229,578 16,020,930 15,765,565 255,365 12,484,943 Fund 805, Street Lighting 446,946 191,758 339,372 (147,614) 299,332 Fund 806, Public Benefit (116,477) 430,729 538,458 (107,729) (224,206) Fund 820,Water 7,046,230 5,794,019 4,273,145 1,520,874 8,567,104 Fund 840, Waste Water 11,142,697 7,380,849 7,280,155 100,694 11,243,391 TOTAL BUDGET 36,362,669$ 35,195,250$ 1,517,054$ Budget Summary by Fund Fiscal Year 2015-2016 CITY OF UKIAH This budget being more specifically detailed in the “City of Ukiah Budget, Fiscal Year 2015-2016” and incorporated herein by reference. PASSED AND ADOPTED this ___th day of August 2015, by the following roll call vote: AYES: NOES: ABSENT: ABSTAIN: _______________________________ Douglas F. Crane, Mayor ATTEST: ________________________________ Kristine Lawler, City Clerk Attachment 5 Page 1 of 1 RESOLUTION NO. 2015-00 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF UKIAH ADOPTING THE 2015-2016 FISCAL YEAR CAPITAL BUDGET BE IT RESOLVED by the City Council of the City of Ukiah, State of California, that the Budget for the Fiscal Year beginning July 1, 2015, and ending June 30, 2016, is hereby adopted, for the Funds as follows: Estimated Beginning Fund Balance REVENUES EXPENDITURES Increase/(Decrease) in Reserve Estimated Ending Fund Balance Description: Fund 220, Equipment Reserve 1,844,679 - 830,546 (830,546) 1,014,133 Fund 250, Special Revenue 2,219,181 2,204,000 2,204,000 - 2,219,181 Fund 251, General Capital 1,723,204 - 1,359,003 (1,359,003) 364,201 Fund 300, Park Development 21,838 282,800 282,800 - 21,838 Fund 301, Anton Stadium - 18,000 18,000 - - Fund 310, Museum Grant - 2,300,000 2,300,000 - - Fund 507, 1998 STIP (49,576) 227,000 227,000 - (49,576) Fund 509, S.T.P 108,327 387,000 387,000 - 108,327 Fund 510, Traffic Congestion Relief 757,816 400,000 400,000 - 757,816 Fund 607, Proposition 84 - 2,277,691 2,277,691 - - Fund 720,Golf (1,296,707) 155,000 155,000 - (1,296,707) Fund 777, Airport 76,290 - 212,375 (212,375) (136,085) Fund 778, Airport CIP - 225,000 225,000 - - Fund 779, Airport Special Projects - 200,000 200,000 - - Fund 800, Electric 12,229,578 - 4,745,000 (4,745,000) 7,484,578 Fund 801 Electric Capital 1,337,404 4,745,000 4,745,000 - 1,337,404 Fund 820,Water 7,046,230 - 4,167,500 (4,167,500) 2,878,730 Fund 821, Water Capital - 4,167,500 4,167,500 - - Fund 840, Wastewater 11,142,697 250,000 1,334,770 (1,084,770) 10,057,927 Fund 844, Wastewater Capital 2,889,352 1,084,770 1,084,770 - 2,889,352 TOTAL BUDGET 18,923,761$ 31,322,955$ (12,399,194)$ Budget Summary by Fund Fiscal Year 2015-2016 CITY OF UKIAH This budget being more specifically detailed in the “City of Ukiah Budget, Fiscal Year 2015-2016” and incorporated herein by reference. PASSED AND ADOPTED this ___th day of August 2015, by the following roll call vote: AYES: NOES: ABSENT: ABSTAIN: _______________________________ Douglas F. Crane, Mayor ATTEST: ________________________________ Kristine Lawler, City Clerk Continued on Page 2 RECOMMENDED ACTION(S): Approve retainer agreement with Geary, Shea, O’Donnell, Gratton & Mitchell contained in Attachment 1 and authorize the City Manager to sign the agreement, an association of counsel and the budget authorization for the 2015-16 fiscal year. ALTERNATIVES: Decline to retain the law firm. Provide instructions to staff. Citizens advised: Requested by: David J. Rapport, City Attorney Prepared by: David J. Rapport, City Attorney Coordinated with: Sage Sangiacomo, City Manager Presenters: David J. Rapport Attachments: 1 – Retainer agreement COUNCIL ACTION DATE: _____________:  Approved  Continued to___________________ Other _______ RECORDS APPROVED:  Agreement: ___________________  Resolution: ___________  Ordinance: __________ Note: Please write Agreement No. in upper right corner of agreement when drafted.. ITEM NO.: MEETING DATE: 13e August 19, 2015 AGENDA SUMMARY REPORT SUBJECT: RETENTION OF STEVEN MITCHELL AND GEARY, SHEA, O’DONNELL, GRATTAN & MITCHELL AS TRIAL COUNSEL IN UKIAH VALLEY SANITATION DISTRICT V. CITY OF UKIAH AND CORRESPONDING BUDGET AUTHORIZATION FOR FISCAL YEAR 15/16 Summary: To date, efforts to mediate a resolution of the law suit filed by the Ukiah Valley Sanitation District (“District”) against the City have been unsuccessful. The case has been transferred to Sonoma County. At this time the City must begin to prepare to defend itself at trial. Steven Mitchell is an experienced and successful trial lawyer in Santa Rosa. He has a well-deserved reputation as an effective litigator and is well known and respected by the judges in Sonoma County. He has represented the City in the past and represented Willits in a similar lawsuit filed by Brooktrails Township Community Services District against the City of W illits over the shared costs of the Willits wastewater treatment plant. Background: On September 9, 2013, the District filed a damages claim with the City seeking millions of dollars in damages for what the District called breaches of the agreements between the City and the District for the provision of sewer services in the City and the District. The agreements began in 1955 and the District claims that the City committed breaches going back to 1967. The City denied the claim and on October 18, 2013, the District filed a 110 page complaint in Mendocino County Superior Court asking for damages for breaches of the agreements as they read in 1966, 1985, 1995, 2001, 2004 and 2006. The District also sought judicial declarations on over 100 separate issues. The City’s initial response was to object to the complaint on the grounds that any damages claimed by the District occurring more than a year prior to the date the District filed its claim with the City were barred by claim filing requirements imposed by state law and the City code. At about the same time, the District filed a motion to transfer the case out of Mendocino County. Because of the enormous cost in attorneys’ fees and litigation expenses of litigating this complex case, which costs will be borne by the sewer system ratepayers in the City and the District, the City asked whether the District was willing to enter formal mediation. These costs are reflected in the District having budgeted $250,000 for attorneys’ fees for the fiscal year beginning July 1, 2014, and ending June 30, Page 2 of 2 2015. The District has asked the City to transfer an additional $1 Million for attorneys’ fees budgeted in that same fiscal year. The City will be budgeting several hundred thousand dollars in the 2015-16 fiscal year for its attorneys’ fees and litigation expenses of defending the lawsuit. The parties have attempted mediation which is undertaken on a confidential basis. While the City and the District were actively engaged in mediation, they mutually agreed to continue the hearing on the City’s objections to the District complaint and the District’s motion to change venue. In December 2014, the District filed an amended complaint which mooted the City’s objection to the original complaint and the Mendocino Superior Court ordered the case transferred to Sonoma County Superior Court. Mediation has not been active since January. At its meeting on November 5, 2014, the City Council approved submitting to the Local Agency Formation Commission (LAFCO) a resolution of application to detach from the District the portion of its territory which is inside the City limits. The reasons for seeking to detach district territory from the City were summarized as follows: 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. In its First Amended Complaint, filed in December 2014, the District added two claims intended to prevent the City from applying to LAFCO to detach District territory from the City. The City filed a motion to strike these added claims based on a state statute that bars law suits seeking to prevent the exercise of the constitutional right to petition. The Sonoma County court denied that motion and the City has appealed that order to the court of appeals. The City has renewed its timeliness objections to the District’s First Amended Complaint. The Sonoma County court has scheduled a case management conference for September 17 and the hearing on the City’s objections for September 30. At the scheduled case management conference or a subsequent conference this case will be set for trial. Discussion: It is regrettable that the District has embarked on this course, but the City must prepare its defense. It is important to involve the attorney who will try the case at this early stage before extensive discovery has been undertaken. A qualified litigator who knows the Sonoma County courts and judges is the best choice for trial counsel. For these reasons, the City Attorney recommends retaining Mr. Mitchell and associating him as an attorney of record for the City. FISCAL IMPACT: Budget Authorization in 15-16 FY CIP New Appropriation Source of Funds (Title & No.) Account Number Budget Amendment Required $300,000 City Sewer CIP 84424422.52100 Yes No At t a c h m e n t 1