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Home My WebLink About2015-11-04 PacketPage 1 of 3 CITY OF UKIAH CITY COUNCIL AGENDA Regular Meeting CIVIC CENTER COUNCIL CHAMBERS 300 Seminary Avenue Ukiah, CA 95482 November 4, 2015 6:00 p.m. 1. ROLL CALL 2. PLEDGE OF ALLEGIANCE 3. PROCLAMATIONS/INTRODUCTIONS/PRESENTATIONS a. New Employee Introductions: Sean White, Water and Sewer Director; Ashley Cocco, Deputy City Clerk, and Darcy Vaughn, Assistant Attorney to City Attorney David J. Rapport. 4. PETITIONS AND COMMUNICATIONS 5. APPROVAL OF MINUTES a. Minutes of October 21, 2015, a Regular Meeting. b. Minutes of October 22, 2015, a Special 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 Award Repair Contract of Two Fairbanks Morse Pumps for the Waste Water Treatment Plant in the Amount of $25,698 to Commercial Pump & Mechanical. 8. AUDIENCE COMMENTS ON NON-AGENDA ITEMS The City Council welcomes input from the audience. If there is a matter of business on the agenda that you are interested in, you may address the Council when this matter is considered. If you wish to speak on a matter that is not on this agenda, you may do so at this time. In order for everyone to be heard, please limit your comments to three (3) minutes per person and not more than ten (10) minutes per subject. The Brown Act regulations do not allow action to be taken on audience comments in which the subject is not listed on the agenda. 9. COUNCIL REPORTS 10. CITY MANAGER/CITY CLERK REPORTS Page 2 of 3 11. PUBLIC HEARINGS (6:15 PM) 12. UNFINISHED BUSINESS a. Update Regarding Emergency Winter Shelter and Possible Direction Regarding Disbursement of Funds. b. Approval of Amended Agreement with Rural Communities Housing Development Corporation for the Well 9 Easement and Authorize the City Manager to Execute the Agreement. 13. NEW BUSINESS a. Receive Report Regarding Mobile Food Vending Regulations and Provide Direction Regarding Continued Staff Efforts on the Matter. b. Approval of an Additional Customer Service Representative III for Utility Billing And Corresponding Budget Amendments. c. Approval of the Cost Allocation Plan Adopted for the 2015-2016 Budget Applied to the 2014- 2015 Operational Budget and Corresponding Budget Amendments. d. Adoption of a Reimbursement Resolution, an Authorizing Resolution and a Pledged Revenue Resolution to Submit to the State Water Resources Control Board Division of Financial Assistance in Support of a Funding Application for the Construction of the Recycled Water System. e. Creation of Two Separate Ad Hocs to Represent the City Council in Two Separate Solid Waste Issues Regarding Landfill Closure and the Five Year Rate Review Process. 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 c. Conference with Labor Negotiator (Government Code Section 54957.6) Agency Representative: Sage Sangiacomo, City Manager Employee Organizations: All Bargaining Units d. Conference with Real Property Negotiators (§54956.8) Property: Mendocino APN Nos. 002-101-27 and 002-101-26 and other potential water well sites for City water system Negotiator: Sage Sangiacomo, City Manager Negotiating Parties: City of Ukiah, Rural Communities Housing Development Corporation as to APN Nos. 002-101-27 and 002-101-26, and Property Owners of other Potential Well Sites. Under Negotiation: Price & Terms Page 3 of 3 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 30th day of October, 2015. Kristine Lawler, City Clerk Agenda Item 5a Page 1 of 3 CITY OF UKIAH CITY COUNCIL MINUTES Regular Meeting CIVIC CENTER COUNCIL CHAMBERS 300 Seminary Avenue Ukiah, CA 95482 October 21, 2015 6:00 p.m. 1. ROLL CALL Ukiah City Council met at a Regular Meeting on October 21, 2015, having been legally noticed on October 16, 2015. Mayor Crane called the meeting to order at 6:00 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 of Picture of EAA B-17G, Aluminum Overcast, on the Ukiah Airport Compass Rose to Airport Manager. Presenters: Ron Hunt and Paul Trexel, EAA Chapter 1027 Members. Staff Comment: Greg Owen, Airport Manager. 4. PETITIONS AND COMMUNICATIONS 5. APPROVAL OF MINUTES a. Minutes of October 7, 2015, a Regular Meeting. Motion/Second: Mulheren/Doble to approve the minutes of October 7, 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. Report of Disbursements for the Month of September 2015 – Finance. b. Adoption of Resolution (2015-44) Removing 49 Lineal Feet of On-Street Parking at 419 Talmage Road – Public Works. c. Adoption of Ordinance to Defer Water and Sewer Connection Fees Until the Certificate of Occupancy – Administration. City Council Minutes for October 21, 2015, Continued: Page 2 of 3 ORDINANCE NO. 1164 ORDINANCE OF THE CITY COUNCIL OF THE CITY OF UKIAH AMENDING SECTION 3861 IN DIVISION 4, CHAPTER 4 OF THE UKIAH CITY CODE, ENTITLED “FEES FOR WATER TRANSMISSION, STORAGE AND PRODUCTION AND TREATMENT FACILITIES” AND SECTION 3732 IN DIVISION 4, CHAPTER 2, ARTICLE 12 OF THE CITY CODE ENTITLED “FEES FOR CONNECTION TO AND IMPROVEMENT OF SANITARY SEWER SYSTEM” d. Report to Council Regarding the Purchase of Consulting Services from Diversity Research and Consulting Group in the Amount of $17,875 for the Development of a Not for Profit Foundation to Support Parks and Recreation – Community Services. Pulled by department and placed as Agenda Item 13d. Motion/Second: Mulheren/Doble to approve Consent Calendar Items 7a-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 9. COUNCIL REPORTS Presenters: Councilmembers Doble and Brown. 10. CITY MANAGER/CITY CLERK REPORTS Presenters: Sage Sangiacomo, City Manager; Tim Eriksen, Public Works Director/City Engineer; and Sean White, Water and Sewer Director. 11. PUBLIC HEARINGS – 6:15 P.M. 12. UNFINISHED BUSINESS 13. NEW BUSINESS 13d/7d. Report to Council Regarding the Purchase of Consulting Services from Diversity Research and Consulting Group in the Amount of $17,875 for the Development of a Not for Profit Foundation to Support Parks and Recreation – Community Services – From Consent Calendar Agenda Item 7d. Presenter: Maya Simerson, Community Services Supervisor and Sage Sangiacomo, City Manager. Public Comment: Susan Knopf and Pinky Kushner. Council received the report. a. Approval of Agreement with Rural Communities Housing Development Corporation for the Option Agreement to Purchase Easement Real Property for Well 9 and Corresponding Budget Amendment – Public Works. Presenter: Tim Eriksen, Director of Public Works/City Engineer. City Council Minutes for October 21, 2015, Continued: Page 3 of 3 Motion/Second: Doble/Brown to approve agreement (COU NO. 1516-133) with Rural Communities Housing Development Corporation for the Option Agreement to Purchase Easement in Real Property and corresponding budget amendment. Motion carried by the following roll call votes: AYES: Mulheren, Doble, Brown, Scalmanini, and Crane. NOES: None. ABSENT: None. ABSTAIN: None. b. Approve Plans and Specifications for the Installation of Replacement Well 4 and New Well 9, Specification No. 14-05 and Direct Staff to Advertise for Bids – Public Works. Presenter: Tim Eriksen, Director of Public Works/City Engineer. Public Comment: Matt Kennedy, GHD, Inc. Motion/Second: Brown/Doble to approve plans and specifications for the installation of replacement Well 4 and new Well 9, Specification No. 14-05 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. c. Annual Budget Calendar Scheduling – Finance. Presenters: Karen Scalabrini, Finance Director Motion/Second: Doble/Brown to accept the proposed budget calendar with the addition of the March dates discussed that will be added to the narrative and goals. Motion carried by the following roll call votes: AYES: Mulheren, Doble, Brown, Scalmanini, and Crane. NOES: None. ABSENT: None. ABSTAIN: None. 14. CLOSED SESSION 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 c. Conference with Labor Negotiator (Government Code Section 54957.6) Agency Representative: Sage Sangiacomo, City Manager Employee Organizations: All Bargaining Units No action was taken on Closed Session items. 15. ADJOURNMENT There being no further business, the meeting adjourned at 7:19 p.m. ________________________________ Kristine Lawler, City Clerk Agenda Item 5b Page 1 of 3 CITY OF UKIAH CITY COUNCIL AGENDA Special Meeting Ukiah Valley Conference Center 200 S. School Street Ukiah, CA 95482 October 22, 2015 5:30 p.m. 1. ROLL CALL Ukiah City Council met at a Special Meeting on October 22, 2015, having been legally noticed on October 16, 2015. Mayor Crane called the meeting to order at 5:32 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; Charley Stump, Planning and Community Development Director; Tim Eriksen, Public Works Director/City Engineer; Sean White, Water and Sewer Director; Mel Grandi, Electric Utility Director; John Bartlett, Fire Chief; Shannon Riley, Senior Management Analyst; Karen Scalabrini, Finance Director; Maya Simerson, Community Services Director; Greg Owen, Airport Manager; and Kristine Lawler, City Clerk. MAYOR CRANE PRESIDING. 2. WORK STUDY SESSION a. Review and Consider the City Council’s Strategic Plan and Process. Presenter: Sage Sangiacomo, City Manager. City Manager Sangiacomo summarized the conversations that the Strategic Planning Ad Hoc (Mayor Crane and Councilmember Doble) and staff had undertaken based on the discussion from the previous strategic planning meeting held on July 29, 2015. Staff prepared a PowerPoint presentation (attached) to demonstrate a possible structure for the on-going discussions for Council’s consideration and direction. City Manager Sangiacomo reaffirmed the four strategic planning areas: • Maintain downtown historic place as a regional center of civic and economic activity. • Planning Valley-Wide takes place based on sound planning principles. • Develop a prioritized plan for maintaining and improving public infrastructure. • Council and staff work together to create a more responsive and effective workplace environment. He then suggested that Council could take the general guiding principles that Council had developed in previous years: • We continually adjust rates and fees to reflect changes in economy. • Whenever possible, we adjust fees in a way that is proportional to usage. Those who use the service pay a greater proportion of the fee. • Whenever possible, we look to partner with our communities so that they take greater ownership and involvement in their services. • We look to strategies that increase efficiencies while enhancing customer service. City Council Minutes for October 22, 2015, Continued: Page 2 of 3 • Our strategies and approaches to financial sustainability maintain or enhance the unique positive characteristics of our community. • Our strategies and approaches to strategic planning enhance and fast-track our efforts towards annexation. and make suggested modifications. A discussion ensued which resulted in the following changes to the above list of guiding principles: • Take second to last strategy, regarding strategies and approaches to financial sustainability, and move to the top. • Change the first bullet to read: Where applicable we continually adjust our rates and fees to reflect changes in the economy. • Second bullet point: add to first bullet point and drop the last sentence. • Eliminate last bullet point. • Add another principle to plan major projects and future development in context of entire organization. Council gave consensus for staff to revise the list of guiding principles per the discussion. City Manager Sangiacomo added that the list may be modified at any time going into the future. Continuing with the proposed structure for strategic planning discussions, City Manager Sangiacomo demonstrated by taking one of the strategic planning areas, Develop a prioritize plan for maintaining and improving public infrastructure, and walking Council through the suggested steps, which included: • Categorizing goals. • Refining goals into implementation strategies. • Creating actionable items with details of how to achieve the strategy. • Creating steps to achieve actionable items, which could include organizing work/study sessions or agendizing items in regular Council meetings to examine each actionable item and discuss current conditions, needs and opportunities. In regards to the specific actionable items for the first strategic planning area, Develop a prioritized plan for maintaining and improving public infrastructure, City Manager Sangiacomo emphasized the importance of moving forward with Prop 84 funding, which he said there would only be a limited window of opportunity to acquire for projects that are important to Ukiah. Council gave consensus for staff to begin the process of preparing the steps for the actionable items, used in the demonstration strategic planning area, for Council review and discussion, including scheduling of workshops starting with streets. Mayor Crane confirmed that all Council action would be taken in a regular City Council meeting. Throughout the discussion, staff took notes of discussion points to be revisited at future meetings; these included: • Whether to move the guiding principle regarding annexation to Valley-wide planning? • Sidewalks – Possible partnership between property owners and City. • Pedestrian crossings • Include historical information on specific Capital Improvement Projects. • Create “Parking Lot” (notes for future meeting topics) at each City Council Meeting. • Involve Public, Stakeholders, Community • Ensure that decisions are made taking into consideration fiscal responsibility and transparency. City Council Minutes for October 22, 2015, Continued: Page 3 of 3 Council gave consensus to use the proposed structure and agreed to meet on November 12, 2015, at 5:30 p.m., for a subsequent Strategic Planning meeting to review the remaining three strategic planning areas, using the same format. 3. PUBLIC COMMENT 4. ADJOURNMENT There being no further business, the meeting adjourned at 7:09 p.m. ________________________________ Kristine Lawler, City Clerk Strategic Planning UKIAH CITY COUNCIL Four Strategic Planning Areas •Maintain downtown historic place as a regional center of civic and economic activity. •Planning Valley-Wide takes place based on sound planning principles. •Develop a prioritized plan for maintaining and improving public infrastructure. •Council and staff work together to create a more responsive and effective workplace environment. General Principles Develop implementation strategy(ies) Identify and prioritize actionable items, i.e. specific projects Sound Valley-wide planning Plan for maintaining and improving infrastructure Responsive and effective workplace environment Maintain downtown historic place General Principles These are the overarching principles that guide our work City-wide •We continually adjust rates and fees to reflect changes in economy. •Whenever possible, we adjust fees in a way that is proportional to usage. Those who use the service pay a greater proportion of the fee. •Whenever possible, we look to partner with our communities so that they take greater ownership and involvement in their services. •We look for strategies that increase efficiencies while enhancing customer service. •Our strategies and approaches to financial sustainability maintain or enhance the unique positive characteristics of our community. •Our strategies and approaches to strategic planning enhance and fast-track our efforts towards annexation. Four Strategic Planning Areas •Maintain downtown historic place as a regional center of civic and economic activity. •Planning Valley-Wide takes place based on sound planning principles. •Develop a prioritized plan for maintaining and improving public infrastructure. •Council and staff work together to create a more responsive and effective workplace environment. Develop a prioritized plan for maintaining and improving public infrastructure •What does this mean? •Why is this important? •Who is responsible for it? •When should this be done? •How will it be accomplished? Potential Goals Identified by Previous Council •Identify specific priorities and funding allocations for public infrastructure projects •Delineate all the choices and list the possible options •Identify those things that we will not fund in the future •Identify strategies to develop funding for essential and vital services for the long-term. In order to do this we will explore the following issues and possibilities: Charter Cities Sales Tax Developer impact fees Broader tax base MCOG - street impacts Annexation Tax sharing agreement What can we do to displace general fund fees? Flexibility •Develop institutional knowledge so that the organization can be efficient and effective. People will know what to do and how to do it. •Our plan would reflect community input, priorities and what they are willing to pay for in the future •Identification of the most cost effective way of providing services - e.g. contracting General Principles Develop implementation strategy(ies) Identify and prioritize actionable items, i.e. specific projects Sound Valley-wide planning Plan for maintaining and improving infrastructure Responsive and effective workplace environment Maintain downtown historic place Potential Goals Identified by Previous Council •Identify specific priorities and funding allocations for public infrastructure projects •Delineate all the choices and list the possible options •Identify those things that we will not fund in the future •Identify strategies to develop funding for essential and vital services for the long-term. In order to do this we will explore the following issues and possibilities: Charter Cities Sales Tax Developer impact fees Broader tax base MCOG - street impacts Annexation Tax sharing agreement What can we do to displace general fund fees? Flexibility •Develop institutional knowledge so that the organization can be efficient and effective. People will know what to do and how to do it. •Our plan would reflect community input, priorities and what they are willing to pay for in the future •Identification of the most cost effective way of providing services - e.g. contracting Refining/Editing the Goals Recommendation: Create a new implementation strategy Continue the development and maintenance of a comprehensive Capital Improvement Plan. Actionable Items: Participate in workshops for the following areas to determine current conditions, needs and opportunities, and focus on specific capital improvement projects: Streets Water Sewer Storm drains Electric Evaluate the remaining implementation strategies Recommendation: Identify and/or develop funding for essential and vital infrastructure for the long-term. Actionable Items: Evaluation of rates Explore and seek Prop 84 Evaluate potential street funding Next steps? Schedule workshops Address remaining three strategic planning areas General Principles Develop implementation strategy(ies) Identify and prioritize actionable items, i.e. specific projects Sound Valley-wide planning Plan for maintaining and improving infrastructure Responsive and effective workplace environment Maintain downtown historic place Attachment 1 October 30, 2015 1 When recorded return to: City of Ukiah Ukiah Civic Center 300 Seminary Avenue Ukiah, CA. 95482 OPTION AGREEMENT TO PURCHASE EASEMENT IN REAL PROPERTY This Option Agreement to Purchase an Easement in Real Property (the "Option Agreement") is made and entered on __________, 2015 (“Effective Date”), in Ukiah, California by and between Rural Communities Housing Development Corporation (“RCHDC”), a non-profit public benefit corporation in good standing under the laws of the State of California and the City of Ukiah (“City”), a California general law municipal corporation. Collectively, RCHDC and City are called “the Parties” in this Agreement. RECITALS A. RCHDC owns fee title to certain real property located contiguous to but outside the boundaries of the City of Ukiah, in an unincorporated area of Mendocino County, California, consisting of approximately 2 acres more or less, known as 509 Brush Street, Ukiah, California, Mendocino County Assessor’s Parcel Number 002-101-27, located on the north side of Orrs Creek and fronting on Brush Street (“the Property”). B. RCHDC develops and manages housing of various types for Lower Income Families, as defined in Health and Safety Code §50079.5 (“Low Income Housing”), using various grants, low interest loans and tax credit financing to finance the construction of such housing. As a condition of qualifying for much of this financial assistance, RCHDC is required to enter and record an agreement and declaration of restrictive covenants requiring that the housing constructed by RCHDC remain available and affordable (rents generally no greater than 30% of a family’s adjusted income) to Lower Income Families for fifty or more years (an “Affordability Covenant”), C. City operates a municipal water utility to pump from wells and divert from Russian River underflow, treat and deliver water to commercial and residential property in the City. D. RCHDC acquired the Property for the purpose of developing Low Income Housing and has submitted an application to annex the Property to the City prior to its development. E. The City and RCHDC have entered and the Mendocino Local Agency Formation Commission has approved an Out-of-City Water Service Agreement, dated May 13, 2004, under which the City has agreed to provide water service to the Property for a project consisting of an apartment complex with approximately 152 units which will be and remain for the useful life of the complex affordable to persons of very low, low and moderate income as the terms “affordable” and “very low,” low” and “moderate” income are defined by the California Department of Housing and Community Development and/or the United States Department of Housing and Urban Development Formatted: Highlight Attachment 1 October 30, 2015 2 (“the Project”). The City also has identified an area on the Property that it believes may be suitable for an additional well to serve the City’s water system. The area (the “Wellsite Easement”) is depicted and described on Exhibit A to the Easement Grant Deed, attached hereto as Exhibit 1. There may be other locations on the Property suitable for a municipal production well (“Additional Well Sites”) which, when described as required by Section 1.6, below, shall be considered the Wellsite Easement, if the City exercises its Option to purchase that site as provided in Section 3, below. F. The purpose of this Agreement is to state the terms and conditions under which the City will investigate the suitability of the Wellsite Easement for the development of an additional well to serve the City’s water system and to provide the City with an option to purchase the Wellsite Easement, if the City determines that it is suitable for this purpose. It also provides an opportunity to investigate Additional Well Sites, if the Wellsite Easement is determined not to be suitable for a municipal water system production well. AGREEMENTS In consideration of the above-recited facts and the terms and conditions as further stated herein the parties hereby agree as follows: 1. License and Right of Entry. RCHDC hereby grants to the City a license and right of entry for the following purposes on, over and under that portion of the Wellsite Easement and further depicted on the map attached hereto as Exhibit 2 and incorporated herein ("Well Site"), Additional Well Sites and the right to bring in utilities over other portions of the Property: 1.1. The evaluation of the water producing potential of the Well Site and, as further provided herein, Additional Well Sites, by various means, including, but not limited to, test borings, the drilling, pumping and evaluation of test wells, and the surveying and examination of the topography and geology of the Well Site and Additional Well Sites. 1.2. A right of access to the Well Site and Additional Well Sites for the City and its employees and contractors to engage in the activities described in paragraph 1.1, above. 1.3. The City agrees to restore the Property to a substantially similar condition to the condition it was in prior to conducting the tests and inspections authorized by this Agreement, if this Agreement terminates without the City and the RCHDC or its successors or assigns exercising the Option in accordance with Sections 2 and 3, below. In particular, City agrees to fill any test borings or drillings. In using the Well Site or Additional Well Sites, the City shall not unreasonably interfere with the RCHDC’s use or access to the Well Site or the Property and RCHDC shall not unreasonably interfere with the City’s investigation of the Well Site or Additional Well Sites as authorized by this Agreement. 1.4. City will indemnify the RCHDC for any damage to the Property caused by the City or its agents and contractors while performing work pursuant to this Agreement. City will indemnify and defend RCHDC against any claim by a third party against RCHDC for damages or personal injuries, including death, which damages are proximately caused by the negligent or willfully wrongful act or omission of City or its authorized agents or contractors in performing under Attachment 1 October 30, 2015 3 this Agreement or the City’s use of the easement purchased pursuant to Section 3 of this Agreement. City agrees to keep the Property free of liens for both labor and materials. If such a lien is recorded against the Property in connection with the performance of the work authorized herein by City or its authorized agents or contractors, City or its agents or contractors shall immediately obtain a release of the lien by posting bond or other means authorized by law. In the event that City assigns this agreement, its assignee shall assume City’s obligations under this Section 1.4 for any events occurring on or after such assignment, and City shall be released from any obligation to indemnify RCHDC for any such events. City shall require third parties admitted to the Property to provide City with evidence of insurance in amounts deemed satisfactory by City prior to admission to the Property. 1.5. RCHDC makes no representations as to the condition of the Property or its suitability for the activities to be undertaken by the City. RCHDC makes no representations as to the availability or prior rights of any parties to any water produced on the Well Site, Additional Well Sites or the Property. City shall be solely responsible for obtaining any and all permits and approvals necessary for the activities to be conducted by City on the Well Site or Additional Well Sites. 1.6 The City shall investigate the well site potential of Additional Well Sites only if it concludes following its investigation as authorized by Section 1.1, above, that the Well Site is not a suitable site for a municipal water system production water well. Before it commences any investigation of Additional Well Sites, it shall notify RCHDC in writing of each such site’s location and adequately describe the site so that its boundaries can be reliably and accurately located on the ground and mutually agreeable to RCHDCwhich location must be approved by RCHDC, such approval not to be unreasonably withheld or delayed. The City shall not investigate more than two such sites and shall only investigate the second site, if it determines from its investigation of the first such site that the first site is not a suitable site for a municipal water system production well. 2. Option. For the period of one year (the “Option Period”), beginning on the Effective Date, and continuing until ___________, 2016, RCHDC hereby grants to City an irrevocable option ("Option"), as defined herein, to purchase the Wellsite Easement or an Additional Well Site for the Purchase Price,” defined below, and on other commercially reasonable terms and conditions upon which the parties will agree as provided in Section 3.4 below. For the Option, City shall pay RCHDC Twenty-Two Thousand, Four Hundred Dollars ($22,400.00), which together with City’s efforts to investigate the suitability of the Well Site or Additional Well Sites for a production water well, the Parties agree is reasonable consideration. If the City exercises the Option under Section 3, below, the $22,400 paid for the Option (“Option Price”) shall be applied to the Purchase Price of the Wellsite Easement and reduce the balance owing for the Purchase Price. During the Option Period, RCHDC shall not offer the Wellsite Easement or any interest therein for sale and shall not accept any offers to purchase the Wellsite Easement. Further, RCHDC shall not convey title to the Wellsite Easement or any interest therein. RCHDC shall not make any changes to the Property that would affect the use or value of the Wellsite Easement without the prior written consent of City; 3. Terms of Purchase of the Wellsite Easement. To validly exercise the Option, City shall, prior to the expiration of the Option Period, give RCHDC written notice that City is exercising its Option to purchase the Property in accordance with the terms of this paragraph 3 (“Option Notice”). The date when the notice is given shall be called in this Agreement “the Option Notice Date.” Formatted: Highlight Attachment 1 October 30, 2015 4 3.1. Purchase Price: RCHDC agrees to accept from City and City agrees to pay RCHDC as the total consideration and purchase price for the Wellsite Easement, excluding only closing costs and pro-rations paid by City pursuant to Section 3.3(d), below, and the property taxes attributable to the potion of the Property encumbered by the easement (“Easement Property Tax”) One Hundred Seventeen Thousand Six Hundred Dollars ($117,600), consisting of a Purchase Price of One Hundred Forty Thousand Dollars ($140,000.00) less the Option Price of Twenty-Two Thousand Four Hundred Dollars ($22,400). In addition, the City will pay at Close of Escrow Four Thousand Dollars ($4,000) as the Easement Property Tax, calculated at the rate of $400/year for 10 years. , 3.2. Condition of Title: RCHDC shall possess fee simple title to the Wellsite Easement which shall be free and clear of all liens, except for any property taxes not yet due, and all leases, liens, easements and encumbrances not approved by City prior to the close of the escrow established pursuant to paragraph 3.3, below. RCHDC shall execute and deposit in escrow an Easement Grant Deed substantially in the form of Exhibit 1, attached hereto. 3.3. Escrow: City shall open escrow with Redwood Empire Title Company (“Title Company”) within five (5) days from the Option Notice Date. The parties shall deliver escrow instructions to the escrow agent within fourteen (14) days from the Option Notice Date, which shall include the following: a. Closing date: Escrow for the acquisition of the Property shall close (“Close of Escrow”) not later than sixty (60) days from the Option Notice Date, unless otherwise extended by the mutual consent of City and RCHDC, which consent shall not be unreasonably withheld by either party. b. Preliminary title report and title insurance: City shall have procured a preliminary report during its investigation of the Well Site pursuant to Section 1, above. The City shall provide RCHDC with notice of any exceptions in the policy to which it objects within fifteen (15) days of its receipt of the report. RCHDC shall use its best efforts to remove any exceptions disapproved in the City’s notice to RCHDC within thirty (30) of its receipt of those objections, including any approval required by the holder of any deed of trust or other security interest in the Property. If RCHDC is unable to address the exception to City’s reasonable satisfaction, the City may discontinue its investigation of the Well Site and RCHDC shall refund to the City the Option Price. The Title Company must issue prior to closing title insurance in the amount of the $140,000, listing only those exceptions approved by City. c. RCHDC Disclosures: RCHDC discloses and agrees to provide to City and/or cooperate with City on the following information concerning the condition of the Property: (1) Flood Hazard Area Disclosure: The Property or a portion thereof [is] [is not] located within a Federal Emergency Management City (FEMA) "Special Flood Hazard Area." Formatted: Indent: First line: 0" Attachment 1 October 30, 2015 5 (2) Geologic Hazard Zone: The Property is not located within a Special Studies Zone as designated under Public Resources Code §§ 2021-2625. (3) Information: To provide the City with copies of all documents, reports, data, field notes and other information relating to the condition of the Property in RCHDC’s possession or within its control as City may reasonably request. (4) Presence of Underground Utilities: To provide the City copies of documents and other information in RCHDC’s possession or available to RCHDC regarding the location or construction of underground utilities on the Property. d. Closing costs: City and RCHDC shall agree on the appropriate allocation between them of all closing, escrow and title insurance costs of said conveyance. Subject to Section 3.1, above, aAssessments, property taxes and insurance premiums (collectively, “pro-rations”), if any, shall be prorated between the parties from the date the deed is recorded in the official records of Mendocino County. All pro-rations shall be made on the basis of a 365 day year or thirty (30) day month as applicable. e. Right of Possession: City's right of possession shall commence upon Close of Escrow on the purchase of the Property. 3.4. The parties may, but are not required to, negotiate additional and commercially reasonable terms and conditions for the purchase of the Wellsite Easement and/or close of escrow. 3. Miscellaneous provisions. 3.1. Notices. Except as otherwise expressly provided herein, any written notice required by this Option Agreement shall be deemed given and received when personally served by personal delivery, overnight delivery or fax (with acknowledgement of receipt) or forty-eight (48) hours after being placed in the United States mail, with proper first class postage prepaid, and addressed as follows: To City: To RCHDC: Attention: City Manager Chief Executive Officer Ukiah Civic Center 499 Leslie Street 300 Seminary Ave. Ukiah, CA. 95482 Ukiah, CA. 95482 FAX: (707) 462-6204 FAX: (707) 463-1975 Any party hereto may give notice of an address change under the provisions of this paragraph and thereafter all notices shall be given to that address. 3.2. Waivers. No waiver of any breach of any covenant or provision contained herein will be deemed a waiver of any preceding or succeeding breach thereof, or of any other covenant or provision contained herein. No extension of time for performance of any obligation or act will be Attachment 1 October 30, 2015 6 deemed an extension of time for performance of any other obligation or act except those of the waiving party, which will be extended by a period of time equal to the period of the delay. 3.3. Successors and Assigns. City shall have the right to assign its interest in this Option Agreement to such third parties as City shall determine in its reasonable discretion. This Option Agreement is binding upon and inures to the benefit of the Parties’ successor and assigns. 3.4. Entire Agreement. This Option Agreement (including all Exhibits attached hereto) constitutes the entire contract between the parties hereto and may not be modified except by an instrument in writing signed by the party to be charged. 3.5. Time of Essence. City and City hereby acknowledge and agree that time is strictly of the essence with respect to each and every term, condition, obligation, and provision hereof. 3.6. Construction. The Parties agree and their respective advisors believe that this Agreement is the product of all of their efforts, that it expresses their agreement and that it should not be interpreted in favor of or against either party. 3.7. Governing Law. The Parties expressly agree that this Option Agreement will be governed by, interpreted under, and construed and enforced in accordance with the laws of the State of California. The Parties mutually consent to jurisdiction and venue in the courts of Mendocino County and waive any objections to the jurisdiction or venue of such courts. 3.8. Paragraph Headings. The paragraph headings contained herein are for convenience and reference only and are not intended to define or limit the scope of this Option Agreement. 3.9. Recordation. Each party shall have the signature of its authorized representative signing this Option Agreement notarized and the Title Company shall record the original agreement in the Official Records of Mendocino County. 3.10. Third Party Beneficiaries. This agreement is for the sole and exclusive benefit of the Parties and their successors and assigns. No other person or entity, private or public, has any rights under this Agreement or any standing to enforce the terms thereof. 3.11 Well House Standards. City agrees to paint the well house within the improved Wellsite Easement in a color that is compatible with development of the Property by RCHDC or its successors. The City shall allow RCHDC or its successor to incorporate landscape design and treatments within the Wellsite Easement that coincide with the future design of the development. The City agrees to obtain approval of the Property’s owner for any improvements intended to provide security for the City’s well and appurtenances. Entered on the Effective Date. Attachment 1 October 30, 2015 7 CITY RCHDC City of Ukiah Rural Communities Housing Development Corp. By: ________________ Sage Sangiacomo, By: _______________________ City Manager NOTARY ACKNOWLEDGMENT Attach Notary Acknowledgement Ex h i b i t A ‐ Ce n t r a l Se r v i c e s Su m m a r y Ad j u s t m e n t s by Fu n d Su m m a r y of Ad j u s t m e n t s to Ge n e r a l Fu n d Su m m a r y of Ad j u s t m e n t s to Pa r k i n g En f o r c e m e n t Su m m a r y of Ad j u s t m e n t s to Airport Ci t y Co u n c i l (2 2 , 6 9 1 ) $ Ci t y Co u n c i l 51 8 $ Ci t y Co u n c i l (793)$ Ci t y Cl e r k (7 4 , 1 8 6 ) $ Ci t y Cl e r k 49 4 $ Ci t y Cl e r k (447)$ Ci t y Ma n g e r (2 2 8 , 7 8 2 ) $ Ci t y Ma n g e r 1, 4 9 3 $ Ci t y Ma n g e r 6,922$ Ad m i n Su p p o r t (5 3 , 7 0 3 ) $ Ad m i n Su p p o r t 24 7 $ Ad m i n Su p p o r t 2,095$ Mi s c Ge n e r a l Go v e r n m e n t (6 6 8 , 0 0 0 ) $ Mi s c Ge n e r a l Go v e r n m e n t 4, 0 8 7 $ Mi s c Ge n e r a l Go v e r n m e n t 28,139$ Ac c o u n t i n g (2 9 3 , 7 3 1 ) $ Ac c o u n t i n g 2, 8 6 5 $ Ac c o u n t i n g (7,329)$ Ci t y At t o r n e y (7 0 , 3 2 9 ) $ Ci t y At t o r n e y 50 3 $ Ci t y At t o r n e y 3,697$ HR (1 8 4 , 1 9 8 ) $ HR ‐ $ HR 6,263$ Tr e a s u r e r (3 4 , 1 4 3 ) $ Tr e a s u r e r 22 7 $ Tr e a s u r e r (448)$ (1 , 6 2 9 , 7 6 3 ) $ 10 , 4 3 4 $ 38,099$ Su m m a r y of Ad j u s t m e n t s to Po l i c e Su m m a r y of Ad j u s t m e n t s to Go l f Su m m a r y of Ad j u s t m e n t s to Electric (P u b l i c Sa f e t y Fu n d ) Ci t y Co u n c i l 23 , 2 5 0 $ Ci t y Co u n c i l 16 5 $ Ci t y Co u n c i l 5,699$ Ci t y Cl e r k 22 , 1 6 8 $ Ci t y Cl e r k 15 7 $ Ci t y Cl e r k 33,857$ Ci t y Ma n g e r 67 , 0 1 1 $ Ci t y Ma n g e r 47 4 $ Ci t y Ma n g e r 93,500$ Ad m i n Su p p o r t 11 , 0 9 7 $ Ad m i n Su p p o r t 79 $ Ad m i n Su p p o r t 22,503$ Mi s c Ge n e r a l Go v e r n m e n t 18 3 , 4 4 6 $ Mi s c Ge n e r a l Go v e r n m e n t 1, 2 9 8 $ Mi s c Ge n e r a l Go v e r n m e n t 281,191$ Ac c o u n t i n g 12 8 , 5 7 1 $ Ac c o u n t i n g 91 0 $ Ac c o u n t i n g (108,672)$ Ci t y At t o r n e y 13 , 2 8 0 $ Ci t y At t o r n e y 16 0 $ Ci t y At t o r n e y 33,609$ HR 10 7 , 3 8 5 $ HR 1, 1 8 9 $ HR (3,364)$ Tr e a s u r e r ‐ $ Tr e a s u r e r ‐ $ Tr e a s u r e r (6,957)$ 55 6 , 2 0 9 $ 4, 4 3 2 $ 351,366$ Su m m a r y of Ad j u s t m e n t s to Fi r e Su m m a r y of Ad j u s t m e n t s to Co n f e r e n c e Ce n t e r Su m m a r y of Ad j u s t m e n t s to Street Lighting (P u b l i c Sa f e t y Fu n d ) Ci t y Co u n c i l 8, 4 3 3 $ Ci t y Co u n c i l 1, 0 1 0 $ Ci t y Co u n c i l 1,444$ Ci t y Cl e r k 8, 0 4 0 $ Ci t y Cl e r k 96 3 $ Ci t y Cl e r k 1,377$ Ci t y Ma n g e r 24 , 3 0 4 $ Ci t y Ma n g e r 2, 9 1 0 $ Ci t y Ma n g e r 4,163$ Ad m i n Su p p o r t 4, 0 2 5 $ Ad m i n Su p p o r t 48 2 $ Ad m i n Su p p o r t 689$ Mi s c Ge n e r a l Go v e r n m e n t 66 , 5 3 4 $ Mi s c Ge n e r a l Go v e r n m e n t 7, 9 6 7 $ Mi s c Ge n e r a l Go v e r n m e n t 11,396$ Ac c o u n t i n g 46 , 6 3 2 $ Ac c o u n t i n g 5, 5 8 4 $ Ac c o u n t i n g 7,987$ Ci t y At t o r n e y 8, 1 9 4 $ Ci t y At t o r n e y 98 1 $ Ci t y At t o r n e y 1,403$ HR 29 , 4 5 5 $ HR 7, 1 5 9 $ HR 3,038$ Tr e a s u r e r ‐ $ Tr e a s u r e r 67 $ Tr e a s u r e r 883$ 19 5 , 6 1 7 $ 27 , 1 2 2 $ 32,381$ To t a l Sa v i n g to Ge n e r a l Fu n d (8 7 7 , 9 3 7 ) $ (I n c l u d e s Ge n e r a l Fu n d , Po l i c e , & Fi r e ) Attachment 1 Su m m a r y of Ad j u s t m e n t s to Pu b l i c Be n e f i t Su m m a r y of Ad j u s t m e n t s to Su c c e s s o r Ag e n c y Su m m a r y of Ad j u s t m e n t s to Mu s e u m Ci t y Co u n c i l 2, 0 0 0 $ Ci t y Co u n c i l 13 3 $ Ci t y Co u n c i l 1,206$ Ci t y Cl e r k 1, 9 0 7 $ Ci t y Cl e r k 12 6 $ Ci t y Cl e r k 1,150$ Ci t y Ma n g e r 5, 7 6 3 $ Ci t y Ma n g e r 38 2 $ Ci t y Ma n g e r 3,477$ Ad m i n Su p p o r t 95 4 $ Ad m i n Su p p o r t 63 $ Ad m i n Su p p o r t 576$ Mi s c Ge n e r a l Go v e r n m e n t 15 , 7 7 8 $ Mi s c Ge n e r a l Go v e r n m e n t 1, 0 4 6 $ Mi s c Ge n e r a l Go v e r n m e n t 9,519$ Ac c o u n t i n g 11 , 0 5 8 $ Ac c o u n t i n g 73 3 $ Ac c o u n t i n g 6,672$ Ci t y At t o r n e y 1, 9 4 3 $ Ci t y At t o r n e y 12 9 $ Ci t y At t o r n e y 1,172$ HR ‐ $ HR ‐ $ HR 10,197$ Tr e a s u r e r 12 $ Tr e a s u r e r ‐ $ Tr e a s u r e r ‐$ 39 , 4 1 5 $ 2, 6 1 1 $ 33,970$ Su m m a r y of Ad j u s t m e n t s to Wa t e r Su m m a r y of Ad j u s t m e n t s to AR R C Su m m a r y of Ad j u s t m e n t s to Vi s i t Uk i a h Ci t y Co u n c i l (1 1 , 3 4 8 ) $ Ci t y Co u n c i l 30 0 $ Ci t y Co u n c i l 431$ Ci t y Cl e r k (1 4 6 ) $ Ci t y Cl e r k 28 6 $ Ci t y Cl e r k 411$ Ci t y Ma n g e r (2 , 8 9 7 ) $ Ci t y Ma n g e r 86 4 $ Ci t y Ma n g e r 1,243$ Ad m i n Su p p o r t 4, 4 7 5 $ Ad m i n Su p p o r t 14 3 $ Ad m i n Su p p o r t 206$ Mi s c Ge n e r a l Go v e r n m e n t 9, 1 1 6 $ Mi s c Ge n e r a l Go v e r n m e n t 2, 3 6 4 $ Mi s c Ge n e r a l Go v e r n m e n t 3,403$ Ac c o u n t i n g (1 7 4 , 7 1 3 ) $ Ac c o u n t i n g 1, 6 5 7 $ Ac c o u n t i n g 2,385$ Ci t y At t o r n e y 6, 7 1 1 $ Ci t y At t o r n e y 29 1 $ Ci t y At t o r n e y 419$ HR 13 , 3 0 6 $ HR 60 8 $ HR 1,321$ Tr e a s u r e r 7, 3 4 3 $ Tr e a s u r e r ‐ $ Tr e a s u r e r ‐$ (1 4 8 , 1 5 4 ) $ 6, 5 1 2 $ 9,819$ Su m m a r y of Ad j u s t m e n t s to Wa s t e w a t e r Su m m a r y of Ad j u s t m e n t s to Do w n t o w n Bu s . Im p . Ci t y Co u n c i l (9 , 8 1 6 ) $ Ci t y Co u n c i l 59 $ Ci t y Cl e r k 3, 7 8 7 $ Ci t y Cl e r k 56 $ Ci t y Ma n g e r 6, 4 9 5 $ Ci t y Ma n g e r 17 0 $ Ad m i n Su p p o r t 6, 4 4 3 $ Ad m i n Su p p o r t 28 $ Mi s c Ge n e r a l Go v e r n m e n t 41 , 6 5 2 $ Mi s c Ge n e r a l Go v e r n m e n t 46 4 $ Ac c o u n t i n g (1 3 7 , 5 1 9 ) $ Ac c o u n t i n g 32 5 $ Ci t y At t o r n e y (2 , 2 2 0 ) $ Ci t y At t o r n e y 57 $ HR 17 , 2 3 9 $ HR ‐ $ Tr e a s u r e r 33 , 0 1 2 $ Tr e a s u r e r ‐ $ (4 0 , 9 2 7 ) $ 1, 1 5 9 $